SNAM S.P.A. Energy infrastructure for a sustainable future
March 2024
Snam, a leading pan European gas infrastructure operator
Italian and International assets (pro-quota)
~37,400 | ~20 bcm | ~20 bcm/y |
km1 | capacity2 | capacity3 |
Transport Storage Regasification
Italian assets
~33,000 | ~17 bcm | ~17 bcm/y |
km4 | capacity | capacity5 |
Transport Storage Regasification
- Including TAG, Desfa, GCA, Terega, Interconnector, TAP, Adnoc gas piples, EMG, Seacorridor pro-quota transport km
- Including also Terega pro-quota storage capacity
- Including also Golar Tundra, BW Singapore and the pro-quota of OLT, Adriatic LNG, Revithoussa and Alexandroupolis
- o/w 10,000 national & 23,000 regional network
- Including also Golar Tundra and BW Singapore
- Italian
- At December 31, 2023
Key figures | |||
€ 21.4 | ~ € 15.6 | € 2.24 | € 1.16 |
bn | bn | bn | bn |
Tariff RAB | Market | EBITDA | Net Income |
20226 | Cap7 | Adj. 2022 | Adj.2022 |
Opening remarks
energy
to inspire the world
Snam's Board of Directors, guided by its robust governance, oversees the long-term strategy while fostering an engaged and accountable culture.
We have always been comprehensive in our approach to sustainability and remain committed to the Paris Agreement.
Oversight of Strategy
Robust Governance
Pay Aligned with Strategy
Engaged and Accountable
ENERGY
INFRASTRUCTURE
FOR A SUSTAINABLE
FUTURE
Comprehensive Approach to Sustainability
Committed to the Paris
Agreement
…and Net Positive Biodiversity Impact
3
Our Ambition: Energy infrastructure for a sustainable future
energy
to inspire the world
With two businesses that are synergistic and progressively interconnected, Snam's aim is to become a modular, flexible, and repurposeable infrastructure to secure energy supply across Italy and Europe. To achieve this, Snam will leverage two key strategic levers: sustainability, and innovation.
Integrated Strategic Framework | All-round Sustainable Strategy |
4
2023-2027 Strategic Plan: key figures
Capex | ||
Old plan | New plan | |
€ 10 bn | +15% | € 11.5 bn1 |
2022-2026 | 2023-2027 |
Tariff RAB | Net Debt | ||
€ bn | Cagr | € bn | |
>6% | |||
~ 28.6 bn | |||
~ 22.4 bn | |||
~15.5 | ~19.0 |
2023 | 2027E | 2023 | 2027E | |
Guidance | Guidance | |||
LNG | Storage | Transport | 1. Net of grants | |
Total Capex gross of grants: € 12.4 bn |
energy
to inspire the world
EBITDA adj. | Net income adj. |
Cagr | Cagr |
>7% | ~4% |
€ bn | € bn |
~2.4 | ~3.2 | ~1.14 | ~1.33 | ||
2023 | 2027E | 2023 | 2027E |
Guidance | Guidance |
100 bps higher EPS growth vs Old Plan
5
Snam's Sustainability journey: what we achieved
energy
to inspire the world
1
2
3
Methane emissions : -57% vs 2015 and 3 years gold standard by UNEP
Employee inclusion and Well-being:84% engagement index by employees in 2023
Certifications: recent achievements in energy efficiency, anti-corruption and gender equality
4
5
6
Governance: Sustainable value creation introduced in the By-laws, including energy transition businesses and BoD gender balance
Sustainable finance: 80% target on Sustainable Finance already achieved in 2023
Commitments: Net Zero on all emissions by 2050 & first TSO to be part of SBTN engagement program & to commit to net positive impact on biodiversity by 2027
Main impact on SDGs
58% of CapEx1 are aligned with the UN SDGs
and 37% to European Taxonomy
1. 2023-2027 | 6 |
Strategic Plan | |
All-round Sustainable Strategy: a 7 pillars framework
energy
to inspire the world
Decarbonize the core business in line with | |
Develop an energy transition | our path to Net Zero, while partnering with |
platform to reach system's | suppliers to promote the sustainability of the |
decarbonization and sustainable | whole value chain |
growth through inclusive pathways of | |
change1 | |
Leverage every new infrastructure project to | |
positively impact on Nature and local | |
Energy | environment, following a Science Based |
approach |
Empower all Snam's People worth, fostering | ||
professional growth and providing | ||
Embed a culture of innovation | comprehensive care | |
within all Snam's People to maximize | ||
technology effectiveness, thus | ||
enhancing asset safety, reliability, | ||
sustainability and value chain | Keep generating value for local | |
capabilities | communities, acting as System Operator | |
being attentive to territory needs | ||
1. Pillars 1 and 2 covered in the Strategic Plan | To be conveyed in the upcoming Transition Plan | 7 |
Full scorecard aligned with the 7 pillars framework | to inspire the world | ||||||
energy | |||||||
KPIs | 2023 | 2024 | 2027 | KPIs | 2023 | 2024 | 2027 |
Estimate | Target Target | Estimate Target Target |
Green
transition
Multi-
molecule
infrastruct.
Carbon
Neutrality
Biodiversity
& Regener.
• | Avoided CO2 emissions (ktCO2e)1 | 702 |
• H2 readiness length of network certified (km) | 1,513 | |
• Gas Transportation operational availability3 (%) | >99 | |
• | Production of biomethane (Mscm) | |
24.4 | ||
• Invest. related to the CCS Ravenna Project Phase 1+2 (€M)4 | ||
202 | ||
• Reduction of total natural gas emissions (%)5 | -55 | |
• ESG criteria in proc. procedures (% of spending)5 | ||
35 | ||
• RES6 on total electricity consumption (%) | ||
522 | ||
• Spending on total procured with decarb. plan from | ||
23 | ||
suppliers(%) |
- Zero Net Conversion by 2024
- Net Positive impact by 2027
• Vegetation restored in areas of pipes constr. (%) | 99.9 |
105
1,900
>99
20
120
-57.5
35
52-55
25
99.9
500
3,000
>99
160
370
-64.5
65
100
35
99.9
People
Local
Communit.
Transform. Innovation
- Employees engagement index (%)
- Women in exec. and middle-mgmt. roles (%)5
- IpFG (Combined Frequency and Severity Index)5
- Gender pay gap (%)7
- Participation in welfare initiatives (%)
- Training hours delivered to employees (h/capita)
- Benefits for local communities over reg. revenues (%)
- Value released at local communities (€M)
- Avg customer satis. rate for service quality (1-10)
- Investments in Innovation as % of revenues
- Start-upsaccelerated after PoC (#)9
- Process digitalized and processes with AI (% of total)
- Projects covered by Security by Design cyber approach (%)
84
26
0.47
-
722
33.72
12
1,5002
8.42
New KPI
New KPI
100/10
New KPI
>80 >80
26 27.5
- min. 3y< min. 3y
-
+/- 5
75 80
36 40
~1 | ~1 | |
>1,000 | >1,000 | |
>8.1 | >8.18 | |
3 | 3 | |
15(25) | 27(30) | |
100/12 | 100/20 |
100 | 100 |
Financial
& CO2
• ESG Finance over total funding available (%)5 | 80 | |
• | CapEx EU Taxonomy-aligned (% of total) | |
392 | ||
• | ||
Revenues EU Taxonomy-aligned (% of total) | 202 |
85
• | CapEx SDG-aligned (% of total) | 622 |
• | Scope 1 and 2 CO2 emissions reduction (% v. 2022)10 | |
-8 Exp |
-25 |
Sustainable | • ESG matters discussed at BoD meetings (>40% of BoD discussions with ESG topic discussed) | |
• | 3rd parties subject to procure. Process on which reputational checks are performed (100% of suppliers with reputational checks performed) | |
principles | • | Italian territory covered by cyber resilience field tested scenarios (100% of Italian territory covered) |
1. Emissions avoided to 3rd parties thanks to bio-methane activities and energy efficiency interventions 2. Refers to 2022 data 3. Previously called "Reliability levels on gas supply" 4. Cumulated figure 2023-2027 5. Figures subject to | |
final approval by Committees in the remuneration process 6. Renewable Energy Source computed on regulated perimeter 7. For equivalent organizational positions 8. The target indicated refers to a spontaneous initiative by Snam to | 8 |
measure service quality through the annual survey, using a scale of values from 1 to 10; however, we are expecting a change in the service quality assessment methodology in the coming years. In this case, the annual target will have | |
to be modified accordingly 9. KPI represents both the number of startup accelerated and the number of Proofs of Concept (PoC) 10. Reduction computed on regulated perimeter. |
Agenda
Governance
Road to Carbon Neutrality
Biodiversity & Regeneration
Snam People
Engagement & Local Communities
Key Data
Robust Governance
Appointed on April 27, 2022
Monica de | Stefano | Massimo | Laura | Augusta | Piero | Rita | Qinjing | Alessandro | |||
Board of Directors | Virgiliis | Venier | Bergami | Cavatorta | Iannini | Manzoni | Rolli | Shen | Tonetti | ||
Non-ExecutiveNon-ExecutiveNon-Executive | Non-Executive | Non-Executive | Non-Executive | Non-Executive | |||||||
Chair | CEO | ||||||||||
Director | Director | Director | Director | Director | Director | Director | |||||
Independent Director1 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | (2) | (2) | |||
Gender | Female | Male | Male | Female | Female | Male | Female | Male | Male | ||
First appointment | 2016-2019 | 2022 | 2022 | 2019 | 2022 | 2022 | 2019 | 2022 | 2016 | ||
2022 | |||||||||||
Committee3 Roles | N&R | Audit | Audit | Audit (C) | N&R (C) | ESG | N&R | ||||
ESG | ESG (C) | ESG | |||||||||
Skills: | Effectiveness: | ||||||||||
Induction & | Joint Cross- | Strategy | |||||||||
Training | Committee | ||||||||||
Workshop | |||||||||||
Strategy | Sustainability | Sector | Corporate | Programs | Meetings | ||||||
Governace
- In accordance with the Italian Corporate Governance Code
- Officers of the jointly controlling shareholders who have been elected to the Board upon proposal of such shareholders
- N&R = Nomination & Remuneration (67% independent), Audit = Audit, Risk and Related Parties Transactions (100% independent), and ESG = ESG and Energy Transition Scenarios (75% independent)
energy
to inspire the world
67%
Independent
44%
Female
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Self-Assessment
10
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Disclaimer
SNAM S.p.A. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 18:30:06 UTC.
