Just Transition Framework

The world energy landscape is facing major challenges in the coming years, having to balance two fundamental needs: to guarantee universal access to energy to a growing population and the urgency of tackling climate change by acting immediately on all the levers available and accelerating the transition process towards a more sustainable mix.

The energy transition is first and foremost a technological transition and it requires a solid industrial and innovative capacity accompanied by a strong focus on the social dimension. With this in mind, Eni is working to ensure that the decarbonization process offers opportunities to convert existing activities and develop new production supply chains with significant opportunities in the Countries where it operates.

The concept of a Just Transition is assuming growing importance for all stakeholders (policy makers, trade unions, financial markets, civil society associations, public opinion), not limiting itself to the workforce issues and including the need to manage the social impacts of the energy transition also towards communities and consumers, putting people at the centre without leaving anyone behind. Several international frameworks - outlined with the engagement and dialogue between companies, civil society, investors, and institutions - have begun to outline how companies can contribute to the Just Transition. In this context, Eni was one of the 7 companies in the sector that took part in the definition of the Just Transition framework outlined by the Council for Inclusive Capitalism.

In outlining its commitment, Eni referred to the principles and objectives of the Paris Agreement (2015), the ILO Guidelines for a just transition focused on the application of its Agenda on decent work to the context of the energy transition and the elements emerging in the continuous evolution of the just transition topic. Considering the international energy scenario and the Eni’s path toward net zero strategy by 2050, the commitment to the just transition focuses on four main categories of stakeholders: workers, suppliers, communities, and consumers.

Eni is committed to manage any potential negative impacts on people that will be involved in the 'transition-out' and 'transition-in' processes, leveraging on a solid approach to respect for human rights, diversity & inclusion, and women empowerment. To pursue this commitment, the engagement of those who can play an important role in the just transition will be fundamental, such as, for example, workers, trade unions, institutions, community representatives, sector organizations.

In promoting a Just Transition, it is crucial to take a different approach between Countries with advanced economies and Countries with emerging economies. In Countries with developed economies there are two aspects of the transition to be adequately managed: 'Transition-Out', i.e., the need to convert and close specific sites or sectors of activity; and 'Transition-In', i.e., the development of new businesses, infrastructures, products. The people potentially negatively impacted by the 'Transition-Out' may not be the same that benefit from the 'Transition-In'. Similarly, it is necessary to ensure that the new 'low carbon' sectors are characterised by decent jobs and positive impacts on the communities is necessary. On the other hand, in Countries with emerging economies the need to reconcile the right to development and access to energy with the global need to reduce emissions must remain a priority, considering the principle of 'common but differentiated responsibilities'. The application of the very concept of 'Transition-Out' is challenging within Countries that have consistently experienced energy poverty and low per capita emissions levels. The Just Transition in these areas will, therefore, be primarily concerned with overcoming energy poverty, also through solid international coordination, to support these Countries in their industrial and technological evolution towards clean energy infrastructures. Furthermore, the potential retributive effects on a global scale linked to the expansion of new sectors, such as the production of plant-based energy feedstocks or the extraction of minerals used in the low carbon energy chain, need to be evaluated and managed so that they do not translate into a further expansion of existing inequalities.