Scope 1 Emissions
2022 Communication on Progress
Saipem S.p.A.
Published date
May 27, 2022
No. of questions
66
Supplemental files
HSE Policy.pdfCode+of+Ethics.pdfHuman+rights+policy.pdfPOLGR-GROUP-001-E-R01.pdfSustainabilityReport2021.pdfHSE Policy.pdfHuman+rights+policy.pdfPOLGR-GROUP-001-E-R01.pdfCode+of+Ethics.pdfPOLGR-GROUP-001-E-R01.pdfHSE Policy.pdfCode+of+Ethics.pdfMSGGR-GROUP-ANC-001-E-R01.pdfCEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
6.1. During the assessment of risk, which business relationships are reviewed?
Optional commentRisk assessment process encompasses all Saipem's operations including procurement activities. The level of risk of vendors linked to sustainability issues is determined by its country of origin and the industrial sector and/or criticality of the supply. The vendors identified with a high sustainability risk level are subject to more in-depth investigations (see question 7)7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
7.1. During the due diligence process, which business relationships are reviewed?
Optional commentHuman and Labor rights: 598 New vendors assessed on labour law in countries at high risk in terms of breaches of human rights and worker rights / 3,107 vendors qualified in 2021 working in countries with a high risk of human and labour rights breach // Environment: 595 vendors assessed on HSE issues / 650 vendors qualified in 2021 for activities considered at HSE risk // Anti-corruption: 6,381 “VERC” (Counterparty Risk Assessment) drafted during the course of the qualification processes that were managed in 2021 (100% of the suppliers for which these are required)Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentESG indicators (Environmental, Social & Governance) (weight 30%) - HSE (The HSE objective is focused on health, safety and the environment: - TRIFR (Total Recordable Injury Frequency Rate); - HLFR (High Level Frequency Rate); - Reduction in GHG emissions; - Definition of Saipem Group Strategy and Action Plan for carbon neutrality) (weight 15%) - Digital Transformation (weight 10%) - Balanced Gender Opportunity (weight 5%). Anti-corruption target was included in the 2022 Short-term variable incentives plan.Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
-In 2021 Saipem has adhered to the Building Responsibly (BR) initiative, a coalition of leading E&C companies working together to raise the bar in the promotion of the rights and well-being of workers throughout the whole sector. As a new member, Saipem participated in the BR meetings, collaborating and sharing experiences and discussing the main efforts and obstacles met. -Furthermore, a tool was introduced to analyse potential risks associated with project activities that could have an impact on the human rights of internal and external stakeholders, including direct and indirect workers, local communities and vulnerable groups (indigenous populations, children, women, etc.). The analysis considers the different types of risk, associated for example with child labour and forced labour, discrimination, remuneration, freedom of association and collective bargaining, considering both the direct activities carried out by Saipem and the risks associated with its supply chain. -Since 2016 we have implemented a training programme on “human rights and the supply chain” to train employees who interact directly with vendors on the importance of reporting serious situations they may observe during visits to vendors. The training includes a focus on international standards and our policies, the actions that can be implemented and the role of employees on these critical issues. - In order to further reinforce the importance of respecting human rights in managing security, since 2020 we have in place an e-learning training programme, specifically dedicated to people operating in Security functions. Training includes a specific focus on ethics and compliance, including the respect and promotion of human rights.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentRef: Saipem Code of Ethics and HSE Policy1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
Optional commentESG indicators (Environmental, Social & Governance) (weight 30%) - HSE (The HSE objective is focused on health, safety and the environment: - TRIFR (Total Recordable Injury Frequency Rate); - HLFR (High Level Frequency Rate); - Reduction in GHG emissions; - Definition of Saipem Group Strategy and Action Plan for carbon neutrality) (weight 15%) - Digital Transformation (weight 10%) - Balanced Gender Opportunity (weight 5%). Anti-corruption target was included in the 2022 Short-term variable incentives plan.5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentLTIFR - (LTI Frequency Rate): it is calculated as (No. LTI on hours worked) x 1,000,000.11. In the course of the reporting period, what was the company’s incident rate?
Optional commentTRIFR (Total Recordable Incident Frequency Rate): it is calculated as (TRI number on hours worked) x 1,000,00Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
- In order to strengthen information on the principles of protection of labour rights and the existing whistleblowing system for all workers, including subcontractors, an awareness-raising activity was devised within the site induction process which targets anyone accessing one of Saipem’s operating sites. This allows Saipem to reach all workers, including those of our subcontractors, to make them aware of the basic principles on human and labour rights adopted by the Company and the system for reporting any possible violations. In 2021, this activity was implemented in some Onshore E&C projects involving 11 countries. - During the course of 2021, the year that was still significantly characterised by the pandemic, relations with trade union organisations involved constant discussions in both Italy and abroad for the management of the same. In particular, the dialogue has been ongoing at a transnational level through the European Works Council (EWC), with a view to consolidate relations and the company's commitment to improving the dialogue with worker representatives in the European Economic Area. - In terms of health&safety, in 2021, Saipem developed and launched the new edition of Choose Life, a training programme that aims to increase Saipem people's awareness on health and well-being issues, with the objective of encouraging them to choose a healthier lifestyle. Furthermore, numerous activities were conducted to handle the health emergency generated by the spread of the SARS-CoV-2 virus: i.e., the Task Force that was set up to manage the emergency situation continued throughout 2021 to monitor the operating sites with more appropriate tools, for example the introduction of targeted Health Risk Assessments, that were specific to the highest-risk areas. Other ongoing health projects for employees include Drug and alcohol prevention programme, Cardiovascular Disease Prevention Programme, Malaria Control programme (extended also to local communities impacted by Saipem’s activities in countries such as Nigeria and Indonesia). - With a specific focus on supply chain, Saipem adopts a sustainable approach to its management, through continuous dialogue and engagement, a strong focus on respect for human rights and HSE aspects and by contributing to growth and empowerment. One example is that, depending on the level of risk of exposure linked to labor/human rights and/or health and safety and environmental management, vendors are assessed during the qualification phase to check compliance with our principles and the vendor’s ability to manage these issues: in 2021, 595 suppliers were assessed on HSE issues and 598 were assessed on labour law issues.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
Optional commentBecause of the nature of its business, in Saipem, energy consumption, GHG emissions and air pollution are interlinked.4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Optional commentFor further details on this topic, please refer to the 2021 Consolidated Non-Financial Statement and the 2021 Sustainability ReportClimate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentScope 1 emissions: 1,054,100 tCO2 eq // Scope 2 emissions: 23,800 tCO2 eq // Scope 3 emissions: 1,586,700 tCO2 eq7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
Optional commentThe total Taxonomy-related CapEx plan (innovation plan) during 2021 is about €5.1 million8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentFor Saipem, water withdrawal corresponds to water consumption.13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Optional commentSince Saipem is not a producer of goods, we consider this KPI not applicable. However, this figure is available for Saipem: 565340 m3 of water withdrawals from water-stressed regions / 6.9 bln Euro revenuesSector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Sector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Optional commentC0 = 5231 - All indicators are expressed in tonSector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
Optional commentTotal hazardous waste: 137,846 t20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Optional commentSingle-use plastic consumed is monitored only in specific sites.Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
- In 2021, Saipem publicly disclosed its long-term decarbonisation objectives, linked to its Net-Zero Programme at the end of a long and structured process that had begun in recent years, identifying the following long-term targets: ≥ 50% reduction in Scope 1 and 2 emissions by 2035 (based on 2018 GHG emissions); ≥ Carbon Neutrality in indirect emissions from purchased energy (Scope 2) by 2025. The Programme and its contents were validated by an independent third-party (Bureau Veritas) at the end of 2021. The Programme and the related objectives will be updated as the situation evolves, but remaining irreversible and systematic, while targeting continuous improvement. Reduction activities set forth in the Net-Zero Programme refer to Scope 1, Scope 2 and Scope 3 emissions. With specific reference to Scope 1 emissions, in the Net-Zero Programme, Saipem continues to implement numerous initiatives aiming to reduce its own energy consumption and, consequently, its CO2 emissions. The initiatives implemented are divided into four areas: energy monitoring, energy saving, energy efficiency, renewable energy, In 2021, these initiatives led to a reduction in energy consumption of 580,376 GJ. Examples of initiatives implemented during the year include: the continual improvement in the luminous efficiency in numerous onshore and offshore sites, improvement in the efficiency of Saipem vessels, photovoltaic installations for the production of electricity at offshore sites, a better management of energy in offshore rigs, the purchase of renewable and certified electric power, etc. Through the energy saving initiatives, in 2021, the avoided atmospheric emissions resulted in 36,976 t of CO2 eq. To meet the target of Carbon neutrality for Scope 2 by 2025, our actions will prioritise the following criteria in order of importance: 1. Energy saving and efficiency 2. Renewable energy from the grid or self-produced renewable sources 3. Offsetting as a last chance only for residual emissions, to be applied only after considering all the measures above. Energy flows and consumption will also be constantly monitored. The major challenge for Scope 2 Carbon neutrality is that, in order to reduce Scope 1 direct emissions, we will implement a significant electrification of assets, starting in 2022, shifting Scope 1 emissions to Scope 2, with the subsequent need to increase our commitment in curbing those emissions with the aforementioned criteria. - With regard to supply chain, considering all three emission Scopes: ≥ Scope 1 and 2: procurement is involved in the purchase of materials and products needed for new projects and to retrofit and renew initiatives, therefore impacting on Scope 1 and 2 emissions due to their energy consumption. ≥ Scope 3: the Supply Chain impacts heavily on indirect emissions from suppliers and freighting as an example. The Supply Chain - Green Procurement Workstream was set up and its ambitions include: ≥ The adoption of an ESG platform to monitor the sustainability performance of our vendors at an even more advanced level. That’s why during 2021, we signed the agreement to enter into the Open-es initiative and adopt the ESG digital platform for the Supply Chain. We will carry out the onboarding of our Supply Chain starting from 2022 through targeted engagement initiatives of our Vendors. ≥ The definition of methodologies and tools for monitoring emissions for more accurate traceability of the carbon footprint. During 2022, we aim to strongly engage key vendors in order to collaborate for the collection of the technical information necessary to refine the calculation model of Scope 3 emissions. ≥ The strengthening of the sustainability requirements in the procurement of products and services from a life cycle perspective to prevent environmental impacts from being unintentionally shifted elsewhere within the life cycle. This is relevant also in the supply process for identifying and selecting materials, products and services with a lower impact on the environment and on human health. Green procurement is a fundamental step of this approach, through the definition of specific requirements for the purchase of products and services that can ensure the reduction of environmental impacts deriving from its production and utilisation. - Assessment of all assets connected to the power grid to explore the possibility of obtaining 100% certified electricity from renewable sources: 38 sites do not have the possibility to access renewable sources in the immediate future. 11 sites are already supplied with 100% of electricity from renewable sources (20% of the total) for a total of 10,874 MWh of electricity. - Definition of a set of asset-specific KPIs (vessel, rig, TFC, yard and offices) to measure GHG intensity.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
Optional commentPlease see the following documents: - Saipem Model 231 (includes Code of Ethics) (link: https://saipem-cdn.thron.com/static/DBATGE_Model_231__includes_the_Code_of_Ethics__of_Saipem_S.p.A_MIMR0O.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22Model-231-includes_code_of_ethics.pdf%22) - Saipem Management System Guideline "Anti-corruption" (link: https://www.saipem.com/sites/default/files/2020-03/MSGGR-GROUP-ANC-001-E-R01.pdf) - Saipem Whistleblowing procedure available on Saipem website (link: https://saipem-cdn.thron.com/static/KC27I0_Whistleblowing_procedure_NON5K9.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22Whistleblowing_procedure.pdf%22). In 2018 Saipem obtained the certifications of the international standard ISO 37001:2016. In 2021 DNV-GL carried out a new audit on Saipem's anti-corruption management system, based on the parameters of the international standard ISO 37001: 2016. From this audit activity, which ended in April 2021, no cases of non-compliance emerged, and the management system was deemed effective and compliant with the aforementioned standard. Therefore, the official certificate was renewed and issued by DNV-GL on 28 April 2021 and will be valid until 27 April 2024.2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional commentSaipem's Code of Ethics and MSG Anticorruption (published on Saipem website), and the "Saipem Business Integrity Guide" internal document (updated in 2021 and available for all Saipem employees)Prevention
3. Who receives training on anti-corruption and integrity?
Optional commentIn 2021, more than 4,200 employees were trained on Compliance, Ethics and anti-corruption issues (11,700 training hours delivered), covering 100% of the countries envisaged by the training plan for Anti-Corruption and 231 Compliance.3.1. How often is such training provided?
Optional commentSaipem people are committed to undergoing a mandatory training in order to have the appropriate knowledge of anti-corruption laws, ethics and compliance provisions and internal anti-corruption regulations. The training activities are usually related to Model 231, as required by the Model 231 and to the Anti-corruption regulations, as required by the MSG Anti-Corruption. In addition, specific tailored trainings focused on sensitive matters are organised for the Procurement Department, Managing Directors of the subsidiaries, etc. The training is organised in relation to the geographical area and is carried out through the use of specific e-learning courses, as well as in classrooms and tailored also considering the nature of the trainees. New employees are trained when they are employed. Follow-up training courses are regularly delivered on a periodic base.4. Does the company monitor its anti-corruption compliance programme?
Optional commentSaipem was among the first Italian companies to achieve the international certificate ISO 37001:2016 “Anti-bribery management systems” (2018). Subsequently, the audit activities necessary for the recertification were carried out and on April 28, 2021, the new ISO 37001:2016 certificate was issued with a three-year validity and expiring on April 27, 2024Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
Optional commentIn 2021, no confirmed cases of corruption were reported.7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
- Saipem was among the first Italian companies to achieve the international certificate ISO 37001:2016 “Anti-bribery management systems” (2018). Subsequently, the audit activities necessary for the recertification were carried out and on April 28, 2021, the new ISO 37001:2016 certificate was issued with a three-year validity and expiring on April 27, 2024. - Saipem's 231 Model was updated on December 23, 2021 in order to incorporate the regulatory and organisational updates that took place during 2021; on January 14, 2022, a further update was required in relation to the new composition of the Supervisory Board. - In 2021, more than 4,200 employees were trained on Compliance, Ethics and anti-corruption issues (11,700 training hours delivered), covering 100% of the countries envisaged by the training plan for Anti-Corruption and 231 Compliance. - Continuous training for Saipem employees and ad hoc sessions training dedicated to specific issues for Top management. In particular, specific tailored trainings focused on sensitive matters are organised for the Procurement Department, Managing Directors of the subsidiaries, etc. - Specific and Innovative Ethics Campaign to integrate and enhance the comunication in relation to Anti-corruption issues. - The “Saipem Business Integrity Guide”, updated in 2021, was published internally as a further tool for employees to better understand our internal rules and share Saipem’s ethical values. The Guide provides an overview of the relevant principles and concrete examples to facilitate their understanding. - Assessment of Corruption Risk within the annual Risk Assessment activity of Saipem SpA and its subsidiaries conducted by the Risk Management Function.