Eni Integrated Reporting Project

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RUNNING HEAD: Eni Integrated Reporting Project
Abstract
Integrated reporting. According to the IIRC website “It is a process founded
on integrated thinking that results in a periodic integrated report by an organization about value
creation over time and related communications regarding aspects of value creation.” (Integrated
reporting 2018)
Also, it’s therein stated that “An integrated report is a concise communication about how an
organization’s strategy, governance, performance and prospects, in the context of its external
environment, lead to the creation of value in short, medium and long-term.” (Integrated reporting
2018).
Before IR, there were several methods of business reporting; generally they were centered
around financial returns, closing out the coverage of the area surrounding non-financial field of
industries.
For any multi-national company, sustainability, growth, reputation, stewardship and
accountability are among the core pillars to push it towards achieving its end-goals.
Nevertheless, in the drive for progress. The progress itself must be strategized, planned for in
advance and monitored. And this is true for Eni. A multi-national company headquartered in
Rome, Italy.
Due to need of detailed information dissemination, implementation of business analysis report.
IR was born. First conceptualized by the IIRC.
In 2010. Eni adopted IR (Integrated reporting) instead of the traditional stand alone sustainability
report. This was among many other technological transitions in ICT aimed at living up to Eni’s

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Eni Integrated Reporting Project
sustainability strategy. This could facilitate information dissemination to the stakeholders, who
include:
i. Providers of capital finance.
ii. Employees
iii. Customers
iv. Policy makers
v. Local communities
vi. Suppliers
vii. Partners.
To achieve integrated thinking. One of Eni’s objectives, It had to adopt IR. Because of the
tremendous opportunities offered.
IR’s aim is to promote integration of financial and non-financial information. This contrasts,
sustainable reports, which provide financial information.
In our report we will explore information surrounding Eni’s move to integrated reporting and its
Sustainability objectives.

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Eni Integrated Reporting Project
Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................4
Project Objective.....................................................................................................................................4
a) Project background..........................................................................................................................4
a) Objective..........................................................................................................................................5
b) Strategies.........................................................................................................................................5
d) Stakeholders............................................................................................................................................6
i. Providers of capital finance.........................................................................................................6
ii. Employees...................................................................................................................................6
iii. Customers....................................................................................................................................7
iv. Policy makers...............................................................................................................................7
v. Local communities.......................................................................................................................7
vi. Suppliers......................................................................................................................................7
vii. Partners...................................................................................................................................7
Problem...................................................................................................................................................7
Body............................................................................................................................................................8
1) Business context..............................................................................................................................8
1. Vision...............................................................................................................................................8
2. Strategy...........................................................................................................................................9
Exploration and Production.................................................................................................................9
Gas and power.....................................................................................................................................9
Refining & Marketing and Chemicals.................................................................................................10
3. Goals (strategic and operational)...................................................................................................10
Business targets.........................................................................................................................................10
Financial targets........................................................................................................................................10
4. Key success factors........................................................................................................................11
5. KPIs (Key performance indicator)..................................................................................................11
Performance analysis between 2017 and 2016.........................................................................................12
Figure 3: Summary operating data........................................................................................................14

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Eni Integrated Reporting Project
6. Actions...........................................................................................................................................14
Statement of current business processes and Problems...........................................................................15
Current business processes...................................................................................................................15
Business problems.................................................................................................................................16
Findings.....................................................................................................................................................18
Conclusion.................................................................................................................................................20
References.................................................................................................................................................21

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Eni Integrated Reporting Project
Introduction
Project Objective
The main objective of the Eni project is to analyze the effect of the current need to change from
financial reporting structured organization, to, an integrated reporting structured organization.
After which, the whole company aspect will need to embrace sustainability in everything they
do. This will affect the company’s strategy and day to day operations. This change process from
The various elements of the project are summarized as:
a) Project background, objective and strategies.
b) Stakeholders.
c) Business context and business case.
d) Statement of current business processes and problems.
a) Project background.
“After having issued a series of environmental and then sustainability reports Eni realized that,
although the numbers were allowing a true and fair review of the company’s performance,
operations and management, they were not necessarily relevant to the stakeholders.” Eni’s
Sustainability Senior Vice president Sabina Ratti (CGMA, 2014, p 4). There was need for a
broader analysis process and communication so as to put performance into context. This began
the journey of integrated reporting. All in need to capture almost every aspect of Eni’s analysis.
“The concept of integrated reporting was introduced in South Africa in 2009 through King III,
the code

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Eni Integrated Reporting Project
of corporate governance. The Johannesburg Stock Exchange adopted King III, and all listed
companies
are now required to “apply or explain” the King III principles, of which integrated reporting is
one.
Regulatory requirements around the world and some listing requirements in different parts of the
world are heading in the same direction. Requirements are emerging to increasingly disclose
non-financial performance, such as”. (EYGM, 2014. p 3).
After which in 2010, IIRC sought out to develop a worldwide framework of reporting, it was in
this year that integrated reporting was to be set as a standard of corporate reporting. (EYGM,
2014. P 3).
Behind any successful company or industry, is an integrated thinking approach towards its
operations. From managerial, day-to-day operations, marketing, supervisory and logistics layout
of a company, there is need for a synergy that helps with the streamlining of the forward aims of
the company’s goals. Eni before 2009, had a financial return report approach. This benefitted the
stakeholders, in precise. The financial providers. Locking out every other stakeholder. The
regulators, community and its own strategy. This for a long time has been the case all around the
world. Integrated report presented its tremendous opportunities to put together not only the
financial report but also almost the whole picture. Ranging from:
i. Strategy layout
ii. Financial returns
iii. Statement of the integrated thinking process
iv. Statement of goals
v. Analysis
vi. Effects and recommendations.