Snam (SRG) Status Update summary

Strategic vision and transition plan highlights

• Launched a comprehensive transition plan aligned with the Paris Agreement, integrating TPT, TCFD, and CSRD frameworks, with clear targets for Net Zero and biodiversity.

• €26 billion investment planned for 2023-2032, focusing on H2-ready infrastructure, emission reduction, and green molecules, with a significant share aligned to EU taxonomy and SDGs.

• Plan is agile, updated regularly to reflect technological and regulatory changes, and based on extensive stakeholder engagement, including over 250 investor meetings in 2023.

• Snam aims to become a pan-European multi-molecule infrastructure operator, ensuring secure, affordable, and flexible energy supply with high asset utilization through 2050.

• ESG performance is tracked via a scorecard of 25 KPIs across seven pillars, reported quarterly, with strong governance and stakeholder engagement.

Emissions reduction and climate targets

• Achieved a 57% reduction in methane emissions since 2015, targeting a 72% reduction by 2032; Scope 1+2 emissions expected down ~20% by 2024 vs 2022.

• Carbon neutrality for Scope 1 and 2 by 2040 and Net Zero for all emissions by 2050; Scope 3 emissions targeted for a 35% reduction by 2032.

• Emissions reduction levers include methane leak detection, electrification, biomethane, green electricity, digital optimization, and supplier engagement.

• Recognized by Moody's and UNEP for robust implementation and Gold Standard methane reduction.

• Scope 3 emissions reduction involves supplier engagement, digital data collection, and decarbonization plans for associates.

Governance, capital allocation, and risk management

• Governance framework integrates climate risk oversight at board and executive levels, with dedicated committees and sustainability skills among directors.

• Remuneration policy links 20-30% of management incentives to ESG and climate KPIs, aligning interests with long-term sustainability goals.

• ESG criteria embedded in procurement, with 35% of 2023 contracts including such requirements and active supplier engagement.

• Sustainable finance represents over 50% of funding, targeting 85% by 2027, using green and sustainability-linked bonds tied to emissions and diversity KPIs.

• Climate risk management uses IEA/IPCC scenarios, showing asset resilience and limited physical/transition risks, with opportunities in hydrogen and CCS.