Methodology and Reporting Criteria

This Addendum is an integral part of Saipem’s reporting and communication system for sustainability. It is one of a series of tools designed to disclose comprehensive and detailed information on the Company’s sustainability performance to all stakeholders. It provides supplementary information to that covered by other sustainability instruments.

strumenti definiti per comunicare in maniera esaustiva e specifica a tutti gli stakeholder della Società le informazioni sulla performance di sostenibilità.

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Materiality analysis and sustainability context

In 2011, a materiality analysis was conducted to identify the sustainability issues deemed most relevant both for the Company and its stakeholders.

The level of internal significance of the issues to be treated was set by the Sustainability Committee1, with due regard for the Company’s principles and values, its business strategy and objectives, as well as the skills and competitive factors for which it stands out in its market segment.

The level of external interest was surveyed by combining a sustainability benchmarking analysis of 45 of the Company’s main Clients (majors and national oil companies, with contracts in force and/or likely to be signed in the future) with the results of the requests and interests that various stakeholders submitted to Saipem over the course of the reporting year. These were then assessed over against the results of a frequency analysis (how often and how many questions were asked on a specific theme) and a relevance analysis (in terms of the criticality and the weight given to the theme) with which the topics dealt with appear in the questionnaires of financial analysts and rating agencies (i.e. SAM, Vigeo, Eiris, Goldman Sachs, Accountability and La Financière Responsable).

Level of significance for stakeholders

Efficiency
ef  Defense of Human Rights
dhr 
Health, Safety and Environment hse  Human Resources Management
hrm
Responsibility
re  Diversity
dv 
Climate Change cc  Local Presence
lp 
Corporate Governance  cg  Local Content  lc 

Benchmarking of Clients is based on information they make public in documents and on web sites, and on requests submitted to the Company during commercial phases (qualification questionnaires and contractual sustainability requirements). In order to simplify analysis and comparison of results, the themes were broken down into 10 macro categories. The materiality of topics is given by the nexus of the levels of internal significance and external interest.

Selection of the activities and programmes that would be reported in detail in relation to themes identified as ‘material’ was carried out with due consideration for the sustainability context in which Saipem operates. Greater weight was assigned to those issues and geographical areas in which the Company has a more significant impact. Where possible, the project performance indicators reported were contextualized with reference to detailed information on local conditions.

1 The Sustainability Committee is chaired by the Chief Executive Officer and consists of all Corporate function SVPs, the Deputy CEO, the Chief Operating Officers of the Business Units and the SVP of Integrated Projects.

Consolidation perimeter and principles

This Addendum contains information on, and a description of, the performance indicators of Saipem SpA and all its subsidiaries, including any companies involved in joint ventures with Saipem, for the period 2009-2011 (if possible). This is to facilitate the reader’s assessment of both the positive and negative performance trends over time. Information and indicators are processed pursuant to the Guidelines of the Global Reporting Initiative regarding the quality of reporting. Where possible, priority and significance are given to the quantitative measurement of performance. Given the technical complexity of the Company’s business operations, the average level of knowledge of the implied reader of the document is borne in mine when qualitative information is reported, and the language and information are simplified accordingly to facilitate comprehension.

The consolidation perimeter basically corresponds to the one adopted for financial reporting.

Data for subsidiaries in which Saipem has less than a 100% shareholding are calculated according to the operational criterion, which is to say that the Company reports 100% of operations in which Saipem SpA or one of its subsidiaries exercises operational control.

For HSE data, intangible companies and subsidiaries that do not produce significant effects are not included in the reporting perimeter. Where expressly indicated, for some HSE indicators deemed particularly important for the Company’s business, subcontractors and vendors working on the Company’s operative projects are included in the report.

In keeping with the methodology adopted for financial reporting, financial data are reported on a proportional basis.

The methods used for calculating the indicators reported are described in the Appendix to this document.

Any exceptions to the above criteria are expressly indicated in the text, as are any changes made to the indicator calculation methodologies, without this in any way affecting the general commitment to maintain consistency in both the information and the data reported.

Data for the Company’s performance reported in the document come from the management and reporting systems used by the various Company functions involved in the reporting process. Almost all indicators are collected by means of dedicated applications for internal monitoring.

Reporting is subject to controls by the same independent auditor used for the consolidated financial statements, for this Addendum and for the document ‘Saipem Sustainability 2011’.

For the present document, Saipem declares a Global Reporting Initiative (GRI) version G3.0 application level of B+.

Standard Disclosures

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