Snam S p A : 2022 Italian Sustainability Week (PDF)

energy to inspire the world

Italian Sustainability Week

September 2022

Snam overview

31.3%

Largest Natural Gas	Largest European
Transportation network	gas storage player
(€16bn RAB)	(~€4bn RAB )
Verified for H2 transport: ≈ 99% of	Tests confirm the possibility to
the network is ready to transport H2	store H2 in depleted fields

68.7%

Free float

~80K investors

Central Role in

Energy Transition

Platforms in H2/ CCS, Bio-

methane, Energy Efficiency & Sust.

Mobility

Leading

Operator

in construction & management

of Energy Infrastructures

energy to inspire the world

Key figures	Natural gas2	International associates portfolio
€24bn	€31bn
RAB + affiliates ('21)	Enterprise Value1	~16.5	~3.5
	~32,767
€1,218bn	bcm	bcm/y
km	capacity	capacity3
Net Profit Adj. ('21)
	Transport	Storage	Regasification

1 Market Capitalization at July 28, 2022	2 Italy	3 Referring to Panigaglia, not including 10bcm of capacity of new FSRUs acquired but not in operation	2

ESG embedded into Corporate Strategy and Governance

energy to inspire the world

01	Challenging ESG targets
02	Financial strategy aligned with corporate strategy: instruments linked to
ESG targets
	03	Investments aligned to EU Taxonomy
	04		ESG integrated into ERM framework
		05	Management compensation fully aligned and
			linked to key ESG metrics

All round approach to sustainability	3

Challenging ESG targets

energy to inspire the world

Environment

Emissions reduction targets set for Scope 1, 2 & 3

• Scope 1 and 2 targets based on important LDAR program and new electric turbines
• Scope 1 targets include a 55% reduction in natural gas emissions by 2025 - beyond the UNEP target

Energy transitions businesses growth:

• EG Significant growth projections for energy efficiency (73kton CO2 equivalent reduction by 2025 )

Increase H2 readiness and flexibility of our assets

Social

Safety

• Target to remain below 5Y average of frequency and severity of incidents despite acquisitions

Diversity

• Target of 27% female executives in 2025 vs 22% in 2021

Supply chain

• Introduction of ESG criteria in procurement criteria

Governance

Company purpose, energy transition and diversity encompassed in Bylaws

Management's long and short term remuneration

• 20% linked to ESG KPIs (based on ESG metrics relevant / material for Snam)

Sustainable Finance (1) growth

• 60% in 2021 and >80% target by
  2025

1) Financial instrument under the Sustainable Finance Framework published in November 2021, including any financial instrument linked to ESG	4
targets and use of proceeds format (in particular climate action and transitions bonds)

Sustainable Finance instruments linked to ESG targets

energy to inspire the world

Sustainable finance @Dec 2021 (%)

23	16		EIB Loans

Sustainable loan

Climate Action e

Transition bonds

26			ESG Commercial
35		Paper

% ESG financing on Total Committed Funding

x2

>80%

~60%

~40%

2020A2021E2025E

What is sustainable Finance for Snam?

Financial instruments including:

• Sustainable loans (linked to ESG Kpis)
• EIB loans
• Commercial paper (Standard Ethics rating)
• Bonds (Climate Action, Transition and Sustainable Linked bonds)

• At the end of 2021 ESG financing reached 60% of committed funding (3Y in advance vs previous target)
• New target set of >80% of Snam's Funding by 2025 through sustainable finance instruments

5