1 Fifth Annual Forum on Business Ethics and Corporate Social Responsibility in a Global Economy CORPORATE AND STAKEHOLDER RESPONSIBILITY. THEORY AND PRACTICE Milan, 22 May 2008 Marco Stampa Eni – Sustainability office/Stakeholder Engagement Manager STAKEHOLDER ENGAGEMENT IN ENI: GLOBAL APPROACH AND LOCAL EXPERIENCES

2 Stakeholder Engagement for an oil & gas company - Long term perspective due to business life cycle - Controversial definition of business sphere of influence - Multistakeholder engagement approach needed - Strategic and partnership oriented approach - Materiality of disclosure and communication - Global/local agenda - Stakeholders responsibility and accountability

3 Phases based on mutual collaboration between stakeholders and company Not direct communication or message toward specific stakeholders and not monitoring their actions Paying attention to the actions of the stakeholders: Internet searches, review of Websites Creating and targeting messages toward specific stakeholders Initiating or participating in two-way dialogue focused on mutual learning and solutions Ongoing interaction over time that is based on mutual trust. Development of opportunity around a common objective by the company and its stakeholders IdentifyMonitorMessageConsultRelationshipPartnership The degree of engagement

4 Stakeholder Engagement principles for Eni Eni systematically consults its stakeholders on both a global and local level about the benefits and impacts of its activities and is committed to account for its performances, actions undertaken and industrial choices made. This is the way Eni intends to improve the social wellbeing and environmental conditions of the areas where it operates both in the short and long term.

5 Value added to Eni Stakeholders In 2007, by performing its activities, Eni distributed to its stakeholders 24,763 million euros, equal to 28% of total revenues (source: Eni Sustainability Report 2007).

6 Global/Corporate approach. In 2007 Eni started a direct dialogue on different aspects of Sustainability with national and international stakeholders: - Institutions - Authorities - Trade unions - NGOs - Consumers’ associations - Investors and rating agencies In 2007 Eni commissioned GfK Eurisko a survey on stakeholders and opinion leaders on knowledge of Eni’s activities and past and current commitment to SD: financial analysts, journalists, environmental and consumer associations, opinion leaders and experts. Employees in Italy and overseas were also consulted. Eni is required to better communicate on: - climate change and renewables - communities and country cases - customer care

7 Eni has adopted a specific SE methodology, which is an integral part of the project management procedures, according to AA1000 SES Accountability Standard: - knowledge of stakeholders and of their real expectations (Principle of Relevance); - understanding of stakeholders’ expectations, of their perspectives, needs and perceptions associated to real issue (Principle of Completeness); - coherence of the company’s responses with the expectations and real preoccupations expressed by stakeholders (Principle of Compliance). Policies and methods Principles of coherence, transparency and fairness. Traceability, checking, control procedures.

local engagement: overview

9 Local experiences: Nigeria, Kazakhstan, Australia  Memorandum of Understanding with local communites in the Niger Delta and Community Trust with local representatives  Local consultation and Social Impact Assessment of indigenous people in Northern Australia  Village Councils meetings in the Republic of Kazakhstan

10 The “Missione di Comunità” project, promoted by Eni and implemented by AASTER (Aldo Bonomi) in the Basilicata region (South Italy) aims at a new relationship model between Eni and the territory to:  Promote a local “opportunities and development culture”  Increase cooperation and dialogue with local stakeholders  Foster local entrepreneurship through know- how transfer Eni is pursuing a policy of reinforcing consensus that cannot be exclusively managed through compensation mechanisms, but also building trust between the company and local stakeholders. As a result of this process, which involves also Fondqazione Eni Enrico Mattei, specific tools as the Knowledge Pact, the Development Pact, and the Territorial Report, have been created with the objective of increasing cooperation, responsibility and committment among local actors. Local experiences: Val d’Agri, Italy

11 Issues and dilemmas Threat Cooperation High Low High ? ? ? ?