value creation and sustainability€¦ ·...

Value creation and sustainability

11%

27%

20%

2% 13%

27%

17%

22%

10%

2% 14%

35%

25%

23%

14%

3% 6%

29% 31%

29%

12%

2% 5%

2014 2030

Nuclear

Hydroelectirc

Other Renewables

Gas

Coal

Oil

13,684 16,185

Mtep +2,501

2014 2030

-151 1,593 1,442

21%

ENERGY MIX IN THE WORLD ENERGY MIX IN EUROPE

THEFUTUREOFNATURALGASINTHEENERGYSYSTEM

Globalenergydemandisprojectedtoincreaseoverthenextfifteenyears,especiallyduetothe

impetusofemerging(non-OECD)countries.TheseshalloffsetthecontractionofdemandinOECD

countries,whoseconsumptionshouldalsodeclineduetotheeffectofenergyefficiencypolicies.To

daterequirementsarestillmainlycoveredbycoalandoil.

Bycontrast,attheEuropeanlevelasignificantpresenceofgasandnuclearenergyintheenergymix

hasbeenrecorded,withrespectivesharesof22%and14%,withalowerweightforcoal(17%)in

comparisonwiththeworldwideshare,andwithamarkedregionaldifferentiationwithintheEuropean

market.

InItalygasplaysamoresignificantroleincomparisonwithotherEuropeancountries,andcoversone

thirdofenergyrequirements.Atthebeginningofthedecadeourcountryexperiencedstronggrowthin

renewablesourcesduetosignificantfinancialsupportforgrowthinthesector,whichrepresents18%

oftheenergymix.

Lookingprospectively,theweightoffossilsourcesworldwideisprojectedtograduallydecline(81%in

2014,comparedwithaprojected76%for2030),whilegasshallplayanincreasinglymoresignificant

role,withanincreaserepresentingapproximatelytheequivalentof790megatonnesofoilin2030.A

significantincreaseinrenewablesisalsoforecast.

ThistrendisevenmoremarkedattheEuropeanlevel,whereitispossibletoobserveadecisive

contractioninthedemandforoilandcoalandasubstantialincreaseindemandforgas(approximately

50Mtep)andrenewables,inconsiderationofchangesintheindustrialfootprintand,aboveall,energy

efficiencypoliciesandareductionincarbondioxideemissions.

CHANGES IN THE ENERGY MIX: THE END OF THE ERA OF OIL AND THE INCREASING USE OF GAS

Source:WorldEnergyOutlook2016

Valuecreationandsustainability

33

The modernity and sustainability of the gas system

Naturalgasisthe“greenest”sourceoffossilenergyandtheonlyfuelthat,incombinationwith

non-programmablesourcessuchaswindandsolarpower,canensureanefficientandeffectivepath

towardsdecarbonisationonnationalandEuropeanlevels.Gasinitsvariousformsguaranteeslower

carbondioxideemissions,by25%to40%comparedwithotherfossilfuels,aswellasloweremissions

ofnitrogenoxidesandfineparticulates,withacrucialanddeterminingimpactonmeasurestofightair

pollutionincities,andwouldcontributetoareductionintheroleofoilandoilderivatives.

Gasisalsoaccessible,giventhepresenceofconsiderablereservesinareasclosetoEuropeandthe

growthoftheworldwideliquefiednaturalgasmarket,whichhasincreasedavailabilityatreduced

prices.

Thegassystemcanrelyuponexistingtransportation,distributionandstorageinfrastructureandis

capableofensuringflexibility,programmability,andcosteffectivenessfortheenergysystem.Thisis

alsoduetoagaselectricalgenerationcapacitywhichinItalyisalreadywidelyavailableandextremely

efficient.

SNAM’S STRATEGY

Snam’sbusinessstrategyisinstrumentaltomakingavailabletheenergythatthemarketrequires,safely

andatafaircost,andenhancingandreinforcingthecentralityofthegassystemontheEuropeanand

Italianenergyscene.

ToachievetheseobjectivesSnam,aleaderinthemanagementofgasinfrastructure,shallinvest

approximately€5.0billionoverthenextfiveyearsofwhich4.7toexpandthenationalnetwork

andintegrateitwithcontinentalmarkets,forthemaintenanceofinfrastructure,aswellasfornew

integratedservicesforsystemoperators,soldonthebasisofmarketregulations.

Inconjunctionwithinstitutionalstakeholdersandinterestedoperators,itshallalsocontributetothe

evolutionofthe“gasproduct”throughtheexpansionofliquefiednaturalgas(LNG)andcompressed

naturalgas(CNG)infrastructureforthemaritimeandhighwaytransportsectors,andtheconversionof

biogasintobiomethanetobeintroducedintothetransportationnetwork.

Italy, a European gas hub

ThepurposeofSnam’sinvestmentsintheItaliannetworkistocompletereverseflowprojectsthat

makepossibleabidirectionalflowofgasatnationalborders.OurinvestmentsinEuropeaimtoensure

agreaterinterconnectionbetweeninfrastructuresandmorediversifiedprocurementsources,in

accordancewithEuropeanguidelines.

Italy,anexampleoftheintegrationoftransportation,regasificationandstorageactivitiesis

strategicallypartoftheEuropeancorridorsnetworkandnewsupplyroutes,particularlyintheCaspian

Seaarea.Investmentsin“reverseflow”shallbringgasfromNorthAfricatoEuropethroughItaly,

therebyexploitingandutilisingSnam’sinfrastructureandthenationalnetwork.

SnamAnnualReport2016

34

ThankstotheinterconnectionofSnam’snetwork,Italyispresentlythecountryin

Europethatcanrelyonthegreatestnumberofsupplysources.Besidesdomestic

production,theItaliansystemcanreceivegasthroughfourmethaneimport

pipelines(Algeria,Libya,RussiaandNorway)and3regasificationterminals.

ItisalsoplannedinthefuturetoaddtheimportationofgasfromtheCaspianSea

byconstructingtheTAPmethanepipeline.

Thedevelopmentofbidirectionalcapacityinthenorthofourcountryalong

theNorth-Southcorridor(reverseflow)mayalsomakeItaliansupplysources

accessibletootherEuropeancountries.

TheindicatorN-1isanindicatorofsystemflexibility:anytimethatthelargest

sourceofsupplyisabsent,itindicateshowthecountryisabletoreplaceit

utilisingotheravailablesources.IntheinstanceofItaly,ifanyofthesupply

sourcesshouldbeabsent,theremainingsourcesofsupplyarecapableof

satisfyingmorethan120%ofthearea’stotalgasdemand,calculatedduringa

dayofparticularlyhighgasdemand.

In2016Snamtookactiontopromotethereplenishmentofnationalstorage

facilitiesforthepurposeofbeingabletomanageseasonalpeaksindemand.

Thereplenishmentlevelattheendoftheinjectioncampaignwas99%as

opposedtoaEuropeanaverageof91%9.

The Impacts of Snam’s activities and investments in the gas system

SECURITY OF SUPPLIES

Diversification

of sources

Storage capacity

utilisation

SUPPLY DIVERSIFICATION SECURITY OF SUPPLY

1

0%

90%

100%

120%

>120%

2

3

4

5

9 AGSI+(AggregatedGasStorageInventory-https://agsi.gie.eu)dataregardingthereplenishmentlevelasat31October2016.

Numberofsourceswithsignificantpriceimpact(2017situation)

IndicatorN-1(2020situation)

(Source:ENTSOGTYNDP2017)


35

Withthenew“NetworkBalancingCode”regime,whichhasbeenineffectsince

October2016,thebalancingserviceisconductedinaccordancewithcommon

andharmonisedEuropeanrules,whichareaimedatpromotingtradingand

marketliquidity.Inanewsystem,usersaretheprimarypartiesresponsiblefor

systemequilibriumandtheycanbalancetheirowntradingpositions(injections

andwithdrawalsfromthesystem)throughanhourlyreprogrammingoftheirown

requirementsand/orbyexecutinggastransactionsonboththeorganisedand

over-the-countermarkets.

Tofacilitateuseractivities,Snamhasalsoprovidednewfunctionalitiesthat

makeitpossibletopurchasewithin-daycapacityproductsatinterconnections

withforeigncountries,aswellasshort-term(dailyandwithin-day)storage

products.ThefunctionalitiesandfeaturesoftheVirtualTradingPointhavebeen

expandedtoallowthecontinuousrecordingoftransactions,andtherehasbeen

anexpandedpublicationofinformationduringthegasdayregardingthestatus

ofthesystem,forecastsofwithdrawalsfromthemarketandthebalancingof

eachindividualuser,withtheobjectiveofencouragingandpromotingbalancing

activities.

Underthenewregime,Snamperforms‘residual’balancingforthesystem,which

istosayitintervenesbymakinggastradesonthemarketinordertorebalance

thesysteminconnectionwiththeimbalancesthatusershavenotbeenableto

correct.

In2016Snamintroducedanewservicethatmadeitpossibletoobtainunder

asinglecontracttheinjectionintostorageofquantitiesofLNGregasifiedand

injectedintothesystemfromterminalsbynolaterthantheendofthemonth

followingtheunloadingfrommethanetankers.Dedicatedtothisserviceisthe

remainingregasificationcapacityavailableatLNGterminals,combinedwith

atotalstoragecapacityatStogitof1billioncubicmetresforthe2016-2017

thermalyear.

New balancing

services

Integrated

regasification

and storage

services

MARKET FACILITATION


36

PRISMA IT

platform

Impact of

infrastructure

services on gas

costs

CREATION OF A EUROPEAN MARKET

COST OF ENERGY

OnthebasisofdatapublishedquarterlybytheAuthority,theimpactofgas

systeminfrastructureservices(“Costoftransportationandmetermanagement”)

in2016wasapproximately19%ofthetotalcostforatypicalhousehold

customer(familywithindividualheatingsystemandannualconsumptionof

1,400standardcubicmetres),whichtranslatestoacostof€0.13perstandard

cubicmetre(approximately€187perannum).

SnamisoneofthefoundingpartnersofPRISMA,theinternationalproject

thatcurrentlyinvolvesparticipationfrom39Europeanoperatorswithgas

transportationandstorageactivitiesin16countries.PRISMAhassettheobjective

ofpromotingtheharmonisationofrulesforaccessingandprovidingservicesin

implementationofEuropeanCodesandfacilitatingthecreationofasinglenatural

gasmarketinEurope,byofferingservicesthroughasingleshareddigitalplatform.

Theplatformhasmorethan550registeredshippers,plus2,500activeusers,more

than2.5millionsuccessfullycompletedauctionsandmorethan1,500network

connectionpoints.

SnamactivelyparticipatesinCompanyactivitieswiththeobjectiveofpromoting

growth,developmentandutilisationbyanincreasinglygreaternumberof

operators,tothebenefitoftheEuropeangassystem.


37

EVOLUTION OF THE SUSTAINABLE BUSINESS DEVELOPMENT MODEL

Snamoperateswithabusinessdevelopmentmodelthatpursuesprofitableandstablecompanygrowth,

thecreationofvalueforallstakeholdersandattractiveandsustainablereturnsforourshareholders.

Forvaluecreationpurposes,themodelindicatestheimportanceofinterpretingchangesintheenergy

environment,andmoregenerallytherelevantframework,andtheimportanceofknowinghowto

implementinthefieldcoherentandconsistentbusinessdevelopmentstrategiesandplans,through

anexaminationinconjunctionwiththeinstitutions,gassystemoperatorsandallotherstakeholders

involvedincorporateoperations.Thelatterhaveafundamentalandessentialroleinprovidingvarious

formsofcapital,notonlyfinancialcapital,butalsoandespeciallyhumanandrelationshipcapital,

whichtheenterpriseneedsinordertobeabletooperate.

Besidestherevisionofstrategicguidelines,whicharespecifiedinthe2017-2021plan,Snamhas

updatedotherimportantcomponentsofitsmodel,inamannerconsistentwiththeexitofthe

distributionbusinessfromthecorporatescopeofconsolidation:Snamisnowfocusedonthegas

transportation,storageandregasificationsegments,ithasspecificallyacquiredaneworganisational

modelforconductingbusinessoperationsandisworkingonupdatingriskmappingandassessmentina

mannerconsistentwiththeprovisionsoftheERMmodel.

Principles and Values

Business Strategies

Direction and Coordination

Internal Control System

Energy and Market Framework

Hum

an

Capita

l

Intellectual Capital

Manufacturing C

apital

Natural Capital

Finan

cial Capital

Relationship Capital

BUSINESS PROCESSES

Stakeholders

OU

TCO

MES

Developing a new organizational model

Updating the materiality organizational model

and ERM model

New partnershipsfor the development of gas use

Focus on the corebusinesses: transportation, storage and regasification


38

The separation of Italgas

Thisrepresentsastrategictransactionwhich,firstofall,shallenableSnamtofocusitsinvestmentson

takingadvantageofnewgrowthopportunitiesand,secondly,shallenabletheenhancementofItalgas

resourcesandknow-how,withtheobjectiveofstrengtheningitsleadershipintheItalianmarketand

significantlyincreasingitsmarketshare,inviewoftheinitiationoftenderprocessestoawardcontracts

fordistributionservices.

SnammaintainsitsownpresenceintheownershipstructureofItalgas,withastakeof13.5%anda

presenceontheBoardofDirectors.Thisrepresents,firstofall,asymbolofcontinuityforItalgasand,

secondly,astrategiccapital.

Inregardtodebt,theseparationofItalgasresultedinareductioninSnam’snetfinancialdebtof

approximately€3.6billionandacash-infortheCompanyofapproximately€3.2billion,netof

approximately€0.4billioninEIBloansforItalgasprojectsthatwereundertakenbythelatter.

Followingthattransaction,Snamrecalibratedandredesignedthestructureofitsliabilities.Inthat

context,theCompanysuccessfullycompletedaLiabilityManagementtransaction,thelargesttodate

inEurope,bybuyingbackbondsonthemarketwithatotalnominalvalueof€2.75billion.

Toward a “One Company” organisational model

Withtheexitofdistributionfromthecorporatescopeofconsolidation,businessoperationshavebeen

reorganisedinordertoimprovecontrolmechanismsforstrategicplanpoliciesandenablemoreefficient

andeffectiveoperationalmanagement,includingthroughasimplificationofdecision-makingprocesses.

Snam’sneworganisationalmodelprovidesforthreebusinessunitsreportingdirectlytotheChief

ExecutiveOfficerandalsoinstitutesatacentrallevelasinglemechanismforcorporateservices,

includingstrategicsupplychainmanagement.

Italian Assets BU Foreign Assets BU Commercial, Regulation and Development BU

Thisshallhavetheobjectiveofcoordinatingstrategiesandprocessesthatcutacrossnaturalgastransportation,storageandregasificationbusinessactivities,facilitatingintegratedexploitationanddevelopmentoftechnicalknow-how.

Thisshallprovideoversightofthemanagementofassetsandsubsidiariesabroad,withtheobjectiveofpromotingtheincreasinginterconnectionofEuropeaninfrastructuresandfurthercontributingtothecreationofasingleenergymarket.

Thisshallmanagetheevaluationofnewbusinessesandservices,opportunitiesconnectedtoemergingnaturalgasusesandbusinessdevelopmentoperations.

Partnerships for the development of uses for gas

Methane automotive uses

Snamshallcontributetoanincreaseintheuseofmethaneforautomotivefuelbyprovidingits

consolidatedexperienceinthesectortopromotetheexpansionofsupplyfacilitiesandamore

balanceddistributionthereofacrossItaly.

Snam’scommitmentispartoftheframeworkofcollaborationwithFCAandIVECO,whichintend

tofurtherexpandtheirrespectiveproductlinesofnaturalgasvehicles,aswellaswiththeAPIgroup,

whichintendstoconstructnewfacilitieswithinitspoint-of-salenetwork.

Theprojectshallmakeitpossibletodoubletheroadandhighwaydistributionnetwork,currently

consistingof1,100servicestations,toreachuptomorethan2,000in10years;toimprovethequality


39

Material issuesn Financial/governance– Creationofsustainablevalue– Corporategovernancemanagement– RiskandCrisisManagement– Managementtransparency– Anti-Corruption– Relationswithregulatoryauthorities– Technologyinnovation

n Social– Healthandsafety– Developingandpromotinghumancapital– Employmentandsafeguardingjobs– Qualityanddevelopmentofservices– Supplychainmanagement

n Environmental– Protectingthelocalareaandbiodiversity– Climatechange– Protectionoftheair

COMMUNITIES AND LOCAL AREAS

INVESTORS AND LENDERS

PEOPLE

CUSTOMERSSUPPLIERS

MEDIA

OTHEROPERATORS

AUTHORITIES AND INSTITUTIONS

oftheserviceprovidedtousers;andtoensureamorebalanceddistributionofstationsinthevarious

regionsofthecountry,inaccordancewithproceduresanddevelopmentprioritiesthataresynergistic

withtheexpansionofthefleetoflightandheavyvehiclescurrentlyinoperation.Theinitiativeshall

alsoprovideadditionalimpetustothenaturalgasbusinesssegmentinthetransportsector,which

representstechnologicalandenvironmentalexcellencethatisrecognisedworldwideandcanfurther

leverageEurope’smoreextensiveandaccessiblenetworkofmethanepipelines,whicharemorethan

32,000kilometresinlength.

Biomethane transportation

Snam,theItalianBiogasConsortiumandConfagricolturapreparedandpubliclypresentedacommon

manifestoinsupportoftheItalianbiomethanebusiness,asrenewableenergy(heat,electricity,biofuels

andbioplastics)thatcanbegeneratedfromagriculturalandagribusinessbiomasses.Thedocument,

addressedtotheGovernmentandtheEuropeanCommission,waspublishedontheoccasionofBiogas

Italyanddemonstratesthestrategicroleofbiomethaneintheenergytransitiontowardsaneconomy

basedonsustainabilityandcircularityintheuseofresources.

Themanifestospecificallyindicatestheneedtopacetheimplementationofincentives,byestablishing

anannualbiomethanetargettobeintroducedintothenetworkby2030;theupdatingofnationallaws

andregulationsonadvancedbiofuels;andtheintroductionofasystemthatenhancesanddevelopsthe

roleofthebiomethanebusinesssegmentintheoverallCO2emissionreductionstrategy.

Materiality (GRI: G4-24,27)

MaterialityisakeyfactorinenhancingandstrengtheningSnam’ssustainabilitystrategy.Itdefinesthe

areasofengagementwithstakeholders,whichunderlinethedynamicsofvaluecreation,bothinterms

ofriskmitigationandopportunitiestobeseized.

Materialissuesguidethedeterminationofsustainabilityobjectivesthatshallbepursuedthrough

specificprojectsandinitiativeswithvarioustimehorizonsand,throughtheBusinessModel,arestated

andrepresentedwithintheReport.TheseparationofItalgashasnotcausedsignificantchangesinthe

assessmentofmaterialissues.


40

Board of Directors Board of Statutory Auditors

CEO

CONTROL LEVEL 1

(risk owners)

Snam and subsidiaries responsible for identifying, measuring and managing risks and implementing relevant controls as part of the processes within their remit

ENTERPRISERISK MANAGEMENT

Compliance

Internal Audit

Group processes

Staff processes

Corporate ReportingInternal Control

SystemPrivacy Market Abuse

Data systems Antitrust Unbundling

Corporate administrative responsibility

Anti-corruption ………

Business processes

CONTROL LEVEL 3

(indipendent checks)

CONTROL LEVEL 2

(risk monitoring and control adequacy)

Supervisory bodyControl and Risk Commitee

RISK OVERSIGHT AND THE CONTROL SYSTEM

Althoughithasalimitedeconomicandfinancialriskprofilebecausemostofitsoperationsareinregulated

businesssegments,Snamadoptsastructuredandsystemicapproachtogoverningallrisksthatcouldaffect

valuecreation.Withthespin-offofItalgas,Snam’sriskprofilechangedasaresultofthereductionofthose

risksconnectedwiththespecificnatureofthedistributionbusiness,whichisnolongerconsolidatedwithin

thecorporatescope,andparticularlyinregardtouncertaintiesconnectedtosectortenderprocessesandend-

of-concessionredemptionvalues.ThesystemweuseacrosstheGrouptoidentify,assess,manageandcontrol

riskhasthreelevels,eachwithdifferentobjectivesandassociatedresponsibilities.TheBoardofDirectors

chargestheCEOwithgivingstructuretoandmaintainingtheentiresystem.

(Moreinformationonhowwemanageandmitigatemajorriskscanbefoundonpage149ofthisReport).

Weuseanintegrated,dynamicandgroup-widemethodofassessingriskthatevaluatestheexisting

managementsystemsintheindividualcorporateprocesses,startingwiththoserelatingtotheprevention of

fraud and corruptionandhealth, safety, environment and quality.Thesesamecontrolsformanintegral

partofthemanagerialprocesses.Managementmustthereforefosteranenvironmentthatencouragescontrols,

andmustspecificallymanage“linecontrols”,consistingofallthecontrolactivitiesthatindividualoperating

unitsorcompaniesperformovertheirownprocesses.IndependentcontrolsareperformedbytheInternalAudit

department,whichisresponsibleforcheckingthatthesystemisfunctioningandadequate.

.Valuecreationandsustainability

41

SPECIALIST IMPACTS

Industrial/BusinessImpact

EconomicImpactStrategic

Immpact

Impacton AssetsFinancial

Impact

MarketImpactImpact

on HumanCapital

ReputationalImpactHSE

Impact LegalImpact

OPERATIONAL IMPACTS

Maintenanceand evolutionof the model

Monitoringand reporting

Enterprisemeasurementand prioritisation

Identificationand measurement

Definitionof managementstrategy

RISK

1. IDENTIFICATION AND MEASUREMENT: ofriskeventsrelatingtocorporateprocessesandexternalriskfactorsthatcouldinfluencetheachievementofcorporategoals,eitherthroughdirectimpactsonresultsandcorporatefinances(lowerrevenueorhighercosts)orthroughintangiblenegativeeffectsonothertypesofcapital,especiallythe“licencetooperate”.

4. MONITORING AND REPORTING: theriskmappingisperiodicallyupdatedaccordingtotheenterprisemeasurement,andatleastonceayear,includingforlow-priorityrisks.Periodicreportingguarantees,atthevariouscorporatelevels,theavailabilityandrepresentationofinformationrelatingtothemanagementandmonitoringoftherelevantrisks.

2. ENTERPRISE AND PRIORITISATION ASSESSMENT: eacheventisassignedan‘enterprisemeasurement’,whichsummarises,foreachrisk,thedifferentmeasurementscarriedoutbytheriskownerandbycentralisedunitswithspecialistexpertise.Theprioritisationofrisksisdefinedbycombiningthemeasurementsofimpactandprobability.

3. DEFINITION OF THE MANAGEMENT STRATEGY: forallrisks,managementmeasuresareidentified,togetherwithanyspecificinterventionsandtherelevantimplementationtimeframes,associatedwithatypeofriskmanagementfromamongthosethathavebeencodified.ThemanagementplansforthemainrisksarepresentedtotheControlandRiskCommittee.

Enterprise Risk Management process (ERM)

TheSnamgroup,inlinewiththeindicationsoftheCodeofCorporateGovernanceandinternational

bestpractices,hasinstituted,underthedirectsupervisionoftheGeneralCounsel,theEnterpriseRisk

Management(ERM)unit,whichoperateswithinthewiderInternalControlandRiskManagement

System,inordertomanagetheintegratedmanagementprocessofcorporaterisksforallGroup

companies.

ThemainobjectivesofERMaretodefineariskassessmentmodelthatallowsriskstobeidentified,

usingstandardised,group-widepolicies,andthenprioritised,toprovideconsolidatedmeasuresto

mitigatetheserisksandtodrawupareportingsystem.


42

SPECIALIST IMPACTS

Industrial/BusinessImpact

EconomicImpactStrategic

Immpact

Impacton AssetsFinancial

Impact

MarketImpactImpact

on HumanCapital

ReputationalImpactHSE

Impact LegalImpact

OPERATIONAL IMPACTS

Maintenanceand evolutionof the model

Monitoringand reporting

Enterprisemeasurementand prioritisation

Identificationand measurement

Definitionof managementstrategy

RISK

Cross-organisational nature

OneofthebestfeaturesofSnam’sERMmodelisthewide-

rangingnatureofitsimpactmeasurement.

Anyriskeventmayhave10differenttypesofimpact,some

determinedbytheriskowners(operationalimpacts)and

othersbyspecialistdepartments(e.g.legalandfinancial

impacts).Thismeansriskmeasurementfromdifferent

perspectivesandteamriskprioritisation.

Themostcommonoperationalimpactisindustrialimpact,

consistentwiththefactthatriskidentificationbeginswith

processanalysis.Themostprevalentspecialistimpacts

includereputationalandlegalimpacts,confirmingthe

existenceofanincreasinglyglobalisedexternalcontext

subjecttoevermorecomplexregulations.

Usingthemodeldescribedabove,theriskassessmentcycles

wereperformedontheentireSnamGroupin2016.Asat

theendof2016,310enterpriseriskshadbeenmappedand

brokendownbetweenallcorporateprocesses.

Inadditiontotheordinaryactivitiesofcheckingand

monitoringtherisksmapped,othermeasureswerecarried

outwithaviewtocontinuallyimprovingthemodeladopted

andsupportingtheriskmanagers.Specifically:

n analysisofseveralofthemappedrisksinorderto

identifyrecommendationsforimprovementinthe

operationalmanagementmechanismsofthesame,with

thepurposeofenhancingstrategiesandactionsforthe

management,systematiccollectionandconsolidation

oftheKeyRiskIndicatorsassociatedwithmappedrisks;

n finaldevelopmentanddistributionoftheERMRisk

Dashboardandthepertinentdematerialisationofthe

reportingprocess.

InDecember2016,“ProjectSimplify”waslaunchedwhich

aims,interalia,todefineandimplementanintegratedrisk

assurancemodelthatintegratesdifferentcontrolmodels

withintheGroup,usingasynergisticapproachaimedatthe

maximumrationalisationandoverallefficiency,inaddition

todesigningandimplementingSnam’snewregulatory

systemwithaviewtosimplificationandgreaterusability.

Theinternalcontrolandriskmanagementsystemin

relationtotheSnamGroupfinancialreportingprocessare

componentsofthesame“System”(CorporateReporting

InternalControlSystem),morespecificallycoveredinthe

chapter“Elementsofriskmanagementanduncertainty”,to

whichreferenceismade.


43

value creation and sustainability€¦ ·...

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