Eni, Italy’s leading oil producer, stands out for providing staff and contractors wide access to health care, with 300 clinics globally. It introduced sustainability reporting in 2006 that could improve its environmental and social impact, but its carbon footprint, management diversity, and presence in low-transparency countries are the worst among Big Oil. Does it still deserve to be on the leading sustainability stock indices (the DJSI and FTSE4Good)?
MANAGEMENT SCORE: 9 out of 25
In his CEO letter, Paolo Scaroni pointed out the importance of mitigating the risks of climate change, but Eni lacks measurable targets.
Sustainability Eni’s first sustainability report set out new tracking measures, particularly in the area of health and accident prevention. Eni’s stated goals include sustainable development, local consensus, and risk management, as well as full disclosure of payments in all countries in which it operates; it’s unclear whether execs are held accountable for achieving these goals. The firm declined interview requests.
IMPACT SCORE: 35 out of 100
Eni has no explicit target for reducing greenhouse gases but says it’s committed to reducing its heavy carbon footprint. It produced 628 million barrels of oil in 2006 and released 65.4 million tons of carbon-dioxide equivalents into the environment—tied with ExxonMobil for dead last in efficiency.
Diversity Eni’s board is all white, all Italian, all male. Among managers, just 13% are women.
Improving Safety The company reported that its industrial accident rate for all personnel, including contractors, reached an all-time low in 2006.
Overseas exploration Some 70% of the 20 countries where Eni operates are poorly rated on transparency, the worst among Big Oil. Between violence in Nigeria, oilfield negotiations in Kazakhstan, and pressure to isolate Iran, Eni has no shortage of distractions for management.