Eni's Strategy Plan Focuses on Sustainability
February 28 2020 - 02:38AM
Dow Jones News
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 giulia.petroni@wsj.com
(END) Dow Jones Newswires
February 28, 2020 02:23 ET (07:23 GMT)
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