Snam S p A : Annual Report 2020 (PDF)

2020

Annual report

energy to inspire the world

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COMPANY PROFILE

Snam is one of the world's leading energy infrastructure operators and ranks among Italy's largest listed companies, by market capitalization.

Through a sustainable and technologically advanced network, Snam guarantees the security of supply and is a key enabler in the energy transition. Through its international footprint Snam operates in Albania (AGSCo), Austria (TAG, GCA), France (Terēga), Greece (DESFA), Italy, UAE (ADNOC Gas Pipelines) and UK (Interconnector UK) and has recently started activities in China and India. Snam is also one of the leading shareholders in TAP (Trans Adriatic Pipeline).

The Group has the largest natural gas transportation network (over 41,000 km including international assets) and storage capacity (approx. 20 bcm including international assets) among its European peers and is also a leading player in regasification, through the LNG terminal in Panigaglia (GNL Italia) and its stakes in the Livorno (OLT) and Rovigo (Adriatic LNG) terminals in Italy and in the Revithoussa (DESFA) terminal in Greece.

In its 2020-2024 strategic plan, Snam plans an increase in investments to 7.4 billion euros and more focus

on the energy transition businesses: biomethane (Snam 4 Environment), energy efficiency (Renovit), sustainable mobility (Snam 4 Mobility) and hydrogen. The company also operates in forestation (Arbolia) and is committed to achieving carbon neutrality (Scope 1 and Scope 2) by 2040.

The Group's business model is based on sustainable growth, transparency, the promotion of talents and diversity and the social development of local areas also through the initiatives of Fondazione Snam.

www.snam.it

ANNUAL REPORT 2020

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Focus on

SNAM'S REPORTS

Financial disclosure	Report on Corporate Governance
on climate change	and Ownership Structure
2020	2020

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energy to inspire the world

FINANCIAL DISCLOSURE ON CLIMATE CHANGE

Describes governance, strategy and scenarios, risks and opportunities, metrics and targets to manage climate change, in line with recommendations of the Task Force on Climate-RelatedFinancial Disclosures (TCFD).

Report on the Remuneration Policy and remuneration paid 2021

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REPORT ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE

Provides detailed information about the company, its governance structure, the ownership structure, the internal control and risk management system and related topics.

2020

Sustainability report

Towards Net Zero

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REMUNERATION REPORT

Illustrates the Policy adopted by the Company for remuneration of Directors and Executives, specifying the purposes, bodies involved, procedures used for its adoption and implementation in addition to the remuneration paid.

SUSTAINABILITY REPORT

Presents performance and future objectives relative to environmental, social and governance issues (ESG), strengthening the relationship and cooperation with all Company stakeholders.

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ANNUAL REPORT

"Integrated reporting means integrated thinking", this is the foundation behind Snam's reporting which for several years now has been involved in integrating its reporting processes. The approach is intended to respond to all stakeholder requests through company reporting which is widespread, transparent and complete, as well as responsible. Thanks to the publication of various specific reports, Snam provides a detailed and in-depth overview of its annual activities, performance and challenges.

2020

Annual report

energy to inspire the world

The Annual Report, which includes the Directors' Report, represents Snam's Integrated Report, prepared following the Framework guidelines proposed by IIRC (International Integrated Reporting Council), which Snam has followed since 2015. In addition to the Directors' Report, the document also contains the Consolidated Financial Statements and Statutory Financial Statements.

The purpose of the Directors' Report is to represent, in addition to annual results, Snam's model for creating sustainable value over the medium/long-term, highlighting existing connections between strategy, economic/financial performance and the social, environmental and economic situation in which the Group functions. The aspects dealt with in the Directors' Report represent the main factors which may influence its economic/financial performance and their impacts on sustainability issues which are material for the Group.

The schedules below (Consolidated Financial Statements and Statutory Financial Statements) facilitate reconciliation of the various methods of reading proposed by the IIRC Framework and the contents of the Directors' Report. Additionally, the Directors' Report also contains the

NFS Consolidated Non-Financial Statement ("Declaration" or "NFS"), prepared in compliance with the provisions of Italian Legislative Decree 254/2016. The NFS, which constitutes a specific section of the Report, contains information on company management and organisational methods, policies used, risks and methods used to manage the same, as well as information on performance with regards to sustainability issues of relevance to the Group. When necessary or expedient, the contents of the NFS include references to information available in other sections of the Directors' Report, which can be easily identified by the blue "NFS" symbol placed next to the title of the relevant chapter/section. Additionally, given Snam's adhesion to the Task Force on Climate-RelatedFinancial Disclosure - TCFD, sections of the document which contain information on the recommendations are identified through the light blue "TCFD" symbol found next to the title

Annual report 2020