Eni outlines sustainable finance goals

Italian energy company Eni on May 20 published sustainable finance goals that target carbon neutrality by 2050. A few days earlier, German utility RWE announced it would take a financial hit if it failed to meet self-imposed sustainability goals, donating cash to unnamed non-profit organisations.

“Eni’s mission expressly represents the transformation path taken by the company to play a defining role in the global ‘just transition’ process towards a low carbon future,” the financing framework read.

Explaining its rationale, the company said it was incumbent on those in the energy sector to take meaningful and challenging steps to address the factors behind global climate change.

“The approach adopted consists in linking Eni’s sustainability strategy with its funding policy, by ncentivising the achievement of pre‐determined, relevant sustainability performance targets (SPTs) to improve its sustainability performance, that are relevant, core and material to its business,” it explained.

Key performance indicators outlined in the framework cover net carbon intensity, installed renewable energy capacity, net greenhouse gas emissions and its net carbon footprint from exploration and production activities.

Among other things, the company said it was pursuing a strategy of zero flaring and an 80% reduction in methane emissions by 2025, relative to 2014 levels.

For renewables, the company said it would build its portfolio up from the 0.3 GW of installed capacity at the end of 2020 to as much as 60 GW by 2050. For the short term, the company said it set a target for renewable power generation through a mix of 60% solar and 40% wind.

For production, the company said it expects to favour natural gas in the coming years. On May 20, the members of the Gas Exporting Countries Forum countered a recent report from the International Energy Agency that said fossil fuels should be phased out, saying natural gas was a bridge to a sustainable future.

At home, Eni said it would work to transition Italian refining sites into those that produce hydrogen and general biofuels through the recycling of waste materials.

“Eni has embarked on a decarbonisation path to rise to the crucial challenge of the energy sector: the transition towards a low carbon future and access to energy for a growing world population,” it said.