Italian retailer rebrands as 'benefit' company

Italian retailer Eni Gas e Luce (EGL) has changed its articles of association to become a 'benefit corporation,' it said July 1, making it the first company of its kind in Italy since the concept was introduced into law in 2015.

In this regard, it is also taking over the parent company's renewable energy division at home and internationally with immediate effect, it said.

EGL now has a "formal commitment to shareholders to balance their interests, the public’s and those of all stakeholders," it said. Its success in doing this will be seen in annual impact reports that will have to be added to financial statements and published on its website.

As well as the profit objective, benefit corporations have to have a positive impact on society and the environment. EGL did not say whether there were any material advantages such as tax breaks to offset the extra burden but the reclassification will perhaps bring intangible reputational benefits.

It said the change was an "important contribution to Eni’s broader commitment to create value through the energy transition and contribute to the achievement of the UN Sustainable Development Goals." 

CEO Alberto Chiarini said the company has always worked to offer products and services that improve its customers' use of energy. "With the integration of the renewables business, EGL acquires an increasingly central and cutting-edge role in the energy transition," he said.

The company has customers elsewhere in Europe, including Spain where it bought Cantabrian supplier Aldro Energia from Pitma Group in February.