Eni's Strategy Plan Focuses on Sustainability

   By Giulia Petroni 
 

Eni SpA released its strategic plan for the 2020-23 period on Friday and defined its goals for 2050, focusing on sustainability as it sees the production of oil and gas plateauing in 2025.

"Eni's strategy is critical in driving a reduction in the group's carbon footprint," the company said, adding that it has developed a new methodology to measure greenhouse gas emissions.

Starting from 2020, Eni plans to progressively reduce hydrocarbons production and invest in renewables, energy efficiency and the circular economy.

"The four-year investment plan focuses on high-value, short-payback projects and provides for investments of around 32 billion euros ($34.67 billion) by 2023," the company said.

Eni targets net-carbon neutrality for scope 1 and 2 emissions from its upstream activities by 2030 and from all activities by 2040. By 2050, the company plans to reduce net scope 1, 2 and 3 emissions by 80%.

"This evolutionary strategy will be reflected, in the coming months, in a new organizational structure, whilst management's long-term incentives have already been modified introducing a new ESG objective with a weight of 35%," Eni said.

The company targets upstream production growth at an annual rate of 3.5% up to 2025. After that, it expects gas to make up for about 85% of total production.

The company also plans to increase the share of renewables in its energy mix and gradually convert some of its Italian sites to produce decarbonized products from the recycling of waste materials. To this end, Eni aims to increase bio-refining capacity to 5 million tons a year and to be palm-oil free starting from 2023.

Based on results achieved in 2019 and the current plan, the company said it aims to increase its dividend by 3.5% to EUR0.89 a share and implement a share-buyback program of EUR400 million in 2020.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

February 28, 2020 02:23 ET (07:23 GMT)

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