Increasingly green, 80% sustainable finance for Snam

The sustainable climb of Snam, a leading company in the energy sector, continues with a focus on gas and a strongly green-oriented approach

The sustainable climb of Snam, a leading company in the energy sector, continues with a focus on gas and a strongly green-oriented approach. In the first nine months of 2023 the San Donato Milanese company reached 2.8 billion euros in turnover with a growth of 17% compared to the previous year.

This success is attributable to the increase in regulated revenues and the essential contribution of activities related to the energy transition. Ebitda (the ‘operating profit’ which does not take into account interest, taxes, depreciation and amortization) followed a similar trajectory, recording an increase of 9.1% and reaching 1.8 billion euros.

Among the results achieved by Snam, the commitment to fsustainable finance which has reached 80% of total financial assets.

Sustainability at the center of investments

For the company, one of the milestones of this period was the issuance of the first convertible EU Taxonomy-aligned Transition Bond. This step demonstrates Snam’s commitment to promoting sustainable financial practices. Sustainable finance now accounts for around 80% of the total, and ESG investors make up over 47% of institutional investors. A percentage that confirms the growing awareness and interest on the part of investors towards companies that adopt environmental and socially responsible practices.

Over 53% of total investments, which reached 1.2 billion euros in the first nine months of 2023, are aligned with the European Union’s sustainable development goals (SDGs), while 37% follow the European taxonomy. The 17 SDGs are the goals set by the United Nations in the 2030 Agenda to address challenges such as poverty, gender equality and climate change.

The European taxonomy is instead a useful standard for identifying sustainable economic activities. Snam, together with other companies in the European panorama, has demonstrated that investments can be both profitable and aligned with environmental objectives.

A concept made even more solid by the Kroll report ‘ESG and global investor returns’ which highlights how the best performing companies at an ESG level record average annual stock returns of 12.9% compared to 8.6% of companies with lower ESG ratings. In practice, the most sustainable companies have made money on the stock market almost 50% more than those least engaged in the field of sustainability.

Key initiatives in the energy transition

Not just sustainable finance initiatives. Snam has intensified its efforts to reduce emissions, with a 25% decrease in methane emissions compared to 2022thus reducing Scope 1 emissions, i.e. those produced by sources owned or in any case controlled by the company.

Significant projects, such as SoutH2Corridor and Carbon Capture and Storage in Ravenna, contribute crucially to the country’s energy transition. SoutH2Corridor is a project focused on hydrogen, a key energy carrier for the transition to a low-carbon economy, while Carbon Capture and Storage is about carbon capture and storage, reducing the environmental impact of industrial activities.

The San Donato Milanese company also reached a record number of 99% storage of all Italian gas.

From the point of view of new technologies, the project IdrogeMO in Modena, created in collaboration with the Hera group, marks an interesting innovation in the field of green hydrogen. It is a product that comes from renewable energy sources which in this case is electrolysis powered by energy from renewable sources. The renewable hydrogen production plant is a concrete step towards sustainability, with the capacity to produce up to 400 tons of green hydrogen per year.

Corporate volunteering week

Snam’s corporate responsibility also spills over onto the social front, the ‘S’ of the acronym ESG through corporate volunteering. On the occasion of World Food Day on 16 October, Snam and the Snam ETS Foundation renewed their social commitment through ‘Together for Others’, a week of corporate volunteering. The initiative, promoted in 11 Italian locations, involved more than 500 participants, including employees, pensioners and suppliers of the Group, demonstrating the unity of purpose in tackling contemporary social challenges.

‘Together for Others’ is intrinsically linked to the Snam Foundation’s commitment to combating three forms of poverty that outline the modern social fabric: energy, education and food. The initiative not only reflects awareness of social responsibilities but offers a tangible contribution to overcoming disparities in the communities in which it operates.

The volunteering project saw the collaboration of over 20 third sector organisations, including the Italian Red Cross, Opera Cardinal Ferrari, Banco Alimentare, local Caritas, Opera San Francesco, Pane Quotidiano and Comunità di Sant’Egidio. This partnership highlights the desire to create effective synergies to maximize the positive impact on local communities.

During the volunteering week, participants dedicated themselves to two main activities. The first concerned the collection and selection of surplus food, a concrete gesture to combat food poverty. The second activity involved the distribution of complete meals, providing direct support to the most vulnerable people. These efforts reflect a holistic approach to addressing social challenges by working both on the prevention of food waste and on direct help to those in need.

The initiative extended across the entire Italian territory, embracing 11 cities, from Milan to Catania. This broad geographical involvement demonstrates Snam’s commitment at a national level to promoting solidarity and addressing social issues in a fair and comprehensive way.

‘Together for Others’ represents a tangible example of how a company can integrate social responsibility into its core values. The commitment of Snam and the Snam ETS Foundation not only addresses the specific challenges of contemporary ‘poverty’ but also underlines the importance of collaboration between the private sector and third sector organizations to create a significant and sustainable impact in society.