Disclosure on Management Approach

The table below shows the Management Approach to sustainability issues pursuant to the Guidelines of the Global Reporting Initiative, version G3.0.

All documents mentioned are available on the Company website www.saipem.com.

Category
Topic
Document
Section title
Economic Performance 
Saipem is an international contractor whose revenues in 2011 totalled €11 billion. The Company has in excess of 40,000 employees and is present in more than 130 countries, often on a medium- to long-term basis and in difficult or ‘frontier’ conditions. Integration with the local area is an important business strategy for Saipem and is assessed in terms of the potential impacts that need to be reduced to a minimum and the positive implications generated by its activities, mainly the use of local people and suppliers in a way that contributes to their social and economic development.
Management Method RF  Letter to the Shareholders
Saipem web site
Industrial model
SS11  Chapter on Saipem’s distinctive approach: Local Content
Goals and performance
AR
Letter to the Shareholders; Operating Review;
Financial and Economic Results
Policy and other information
AR
Letter to the Shareholders
Environmental Performance
To supply excellent products and services is, for Saipem, consistent with the Company’s commitment to environmental protection. Saipem has a well-structured and integrated HSE management system that ensures compliance with national and international legislation and regulations and with the conditions of contracts entered into with Clients. Alongside the HSE and Environmental Managers and their teams working in Corporate and in the main operating companies (where at least one HSE Manager and a HSE team are normally appointed), each operating project is specifically assigned an HSE team, often with an HSE or Environmental Manager. Reducing environmental impacts to a minimum is an objective found along the entire life cycle of a project, from engineering phase through to de-commissioning. Furthermore, technological innovation at the service of Company assets and the implementation of best practices on operating projects are targeted at constant improvement of the Company’s environmental performance.
Management Method SS11  Chapter on Health, Safety and Environment for a Sustainable Futuree
Saipem web site
Sustainability section
AR
QHSEi section
Goals and performance
SP  Key Sustainability Indicators
Policy
Saipem web site
Sustainability section
Organizational responsibility
Saipem web site
Sustainability section
Training and awareness SS11  Chapter on Health, Safety and Environment for a Sustainable Futuree 
AR
QHSE section
Monitoring and follow-up SP  Key Sustainability Indicators
SS11  Chapter on Health, Safety and Environment for a Sustainable Future
Labour Practices and Indicators of Decent Working Conditions
Saipem believes that human capital is a key element for durable competitive success and that the constant development of skills plays a fundamental role in ensuring this. The human resources management system, which comprises tailor-made methods and tools for the recruitment, development, mapping, assessment and growth of employees, is applied throughout the Group, regardless of location, thus guaranteeing observance of and adaptability to the characteristics and peculiarities of individual situations. The workplace health and safety of all Saipem personnel is underscored by means of an integrated HSE management system combined with myriad management tools developed in this regard. Industrial relations are handled with due regard for the specificities of local socio-economic contexts as well as for labour laws in force in the country where the Company is operating.
Management Method SS11  Chapter on Making People a Strategic Asset
Saipem web site 
Sustainability section
AR
HR section
Goals and performance
SP  Key Sustainability Indicators
Policy
Saipem web site 
Sustainability section
Organizational responsibility SS11 HSE Training in the Chapter on Health, Safety and Environment for a Sustainable Future; chapter on Making People a Strategic Asset
Saipem web site Sustainability section
Training and awareness SS11  Chapter on Making People a Strategic Asset
Monitoring and follow-up SP  Key Sustainability Indicators
AR
HR section
Human Rights
Saipem complies with international human and workers’ rights legislation and in turn is committed to ensuring that its own suppliers duly observe these. Saipem guarantees equal treatment based on meritocracy and equal opportunities, without discrimination of any type. This is clearly expressed in the Code of Ethics in which Saipem undertakes to spread knowledge of Company values and principles, including by means of implementing suitable procedures of control and by protecting the specific rights of local populations.
Management Method 
SS11  Chapter on Saipem’s distinctive approach: Local Content
CE Business ethics
Goals and performance
SP  Key Sustainability Indicators
Policy
CE Business ethics
Saipem web site  
Organizational responsibility AR Managing reports; Security practices
CE Business ethics
Training and awareness SP Key Sustainability Indicators
Monitoring and follow-up SP  Key Sustainability Indicators
Social Performance
Saipem is committed to contributing to the long-term social and economic development of the areas in which its business is located. This result is mainly pursued through the employment of local personnel, the transfer of know-how (technical and non-technical) and procurement of goods and services from local vendors. With a view to mitigating impacts on local populations and areas, Saipem has implemented a tool known as the Social Impact Assessment to identify, by way of a structured process, areas requiring intervention and lines of action. As regards local presence, a process for identifying the main stakeholders, as well as the means for involving them in a way conducive to constructive and ongoing dialogue, has been introduced.
Management Method
Saipem web site  
SS11  Chapter on On-the-Ground Presence
CGR
Section on Transparency and section on Anti-Corruption Practices
Goals and performance
SP  Key Sustainability Indicators
Policy
Saipem web site
Organizational responsibility CGR
Section on Transparency and section on Anti-Corruption Practices
Training and awareness AR HR section
Monitoring and follow-up SP  Key Sustainability Indicators
Product Responsibility
Customer satisfaction is a key factor in Saipem’s long-term strategy. Quality and HSE management systems have been implemented on each project to obtain maximum levels of health, safety and quality in both products and services and to improve them constantly. Pursuant to Corporate Quality Policy, all operating companies in Saipem have implemented a Quality Management System in accordance with ISO 9001, Corporate guidelines and relevant standards.
Management Method
Saipem web site  
SS11  Chapter on Health, Safety and Environment for a Sustainable Future
SS11  Chapter on Efficiency for Sustainable Business
Goals and performance
SS11  Chapter on Health, Safety and Environment for a Sustainable Future
Policy
Saipem web site  
Organizational responsibility Saipem web site  
Training and awareness SS11  Chapter on Health, Safety and Environment for a Sustainable Future
Monitoring and follow-up SS11  Chapter on Health, Safety and Environment for a Sustainable Future
Acronyms: AR: 2011 Annual Report SS11: Saipem Sustainability 2011 SP: Addendum to Sustainability Performance CE: Code of Ethics CGR: Corporate Governance and Shareholding Structure Report 2011