Sustainability

In 2011, Saipem divided its external sustainability reporting between two publications with different objectives and target audiences. Benchmarking analysis of competitors, clients (national and international oil companies), the financial community and the main sustainability indexes has highlighted the need to provide external stakeholders, as the main users of the Sustainability Report, with detailed, comparative and easy-to-read information regarding the Company’s sustainability performance and to ensure appropriate levels of visibility to those themes which, given the nature of the Company’s business, have a higher level of materiality than other issues.

To this end, the 2011 Annual Report comes with an appendix entitled ‘Saipem Sustainability Performance 2011’, which supplies details on Saipem’s sustainability performance. Saipem Sustainability Performance 2011 has been drawn up according to the international guidelines of the Global Reporting Initiative (GRI), thus ensuring transparent disclosure of the Company’s performance and comparability with other market players.
The document reports on all relevant sustainability indicators, where necessary providing comparative historical data, and functions as an index for the information described in detail in this Annual Report, in the Corporate Governance Report and in other public documents dedicated to specific topics. Saipem Sustainability Performance 2011 is available on the Company website www.saipem.com.

Saipem Sustainability 2011 is the second document published as part of the Group’s sustainability reporting. It describes Saipem’s undertakings and results achieved on themes of special interest for its stakeholders. These include:

  • maximizing Local Content as a tool and objective for making a concrete contribution to the development of host communities and areas;
  • commitment in the management of HSE related topics to safeguarding people and the environment;
  • leveraging and developing our human capital as the Company’s principal asset, while respecting all the differences present in Saipem’s working population;
  • relations with local areas and communities, a mainstay of Saipem’s stable presence in over 70 countries worldwide;
  • efficiency, in terms of meeting Client expectations, underpinned by a strong industrial model, targeted investments and a propensity for ‘frontier’ projects.

Saipem Sustainability 2011 outlines Saipem’s distinctive characteristics which ensure a competitive edge for the Company and meet stakeholder expectations in terms of sustainable development. It also focuses on countries where the Company operates, supplying concrete examples of how Saipem’s sustainability strategies are transformed into actions on the ground. The document is available on the Company website www.saipem.com.
2011 also saw the continuation of local stakeholder communication initiatives with the publication of Sustainability Case Studies on countries where a local presence is key and on significant projects. The new Case Study on Algeria was published during the year, while those on Congo and Angola are currently being prepared for publication.

Meanwhile, studies proceeded apace to quantify the externalities (indirect and induced impacts) generated in the areas in which Saipem operates through the strategy of maximizing Local Content in terms of their contribution to socio-economic development. This approach seeks to facilitate sustainable development and the creation of economic wellbeing by promoting local employment, the professional growth of local resources and the development of suppliers. Two further assessments were completed during the year in Algeria and Nigeria, and one is currently underway in Indonesia, at the Karimun Yard. Details of the results obtained are available in the document Saipem Sustainability 2011 and in the Case Studies on specific countries.

Sustainability projects in local communities continued during the year with the implementation of support programmes for business growth (especially in Kazakhstan and Peru) and the improvement of education and health facilities (Indonesia, Algeria, Angola, Azerbaijan, Kazakhstan, South America and West Africa) which included programmes to promote health and facilitate improvements in the local education system, in some cases in partnership with local institutions. The development of human resources also continued to be a core theme of support initiatives in host communities.

Further information on sustainability strategies, programmes and actions implemented during 2011 are detailed in the document Saipem Sustainability 2011 and are also published on the Company website.

The Sustainability Committee1, which exercises a sustainability strategy setting role, met twice in an official capacity during 2011 and discussed sustainability programmes and approved the 2010 Sustainability Report.

Saipem was again listed in the FTSE4Good index for all 2011.

It was also included on the Dow Jones Sustainability Index (DJSI) for Europe and selected for listing in the Ethibel EXCELLENCE Investment Register. Finally, for the third year running, Saipem was recognized as a ‘Sustainability Leader’ in the Oil Equipment & Services sector in the SAM Sustainability Yearbook 2011.

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