Our view

It is promising to see  Eni’s new consolidated segment for Plenitude & Enilive, which will enhance the tracking of its low-carbon performance. However, there remains to be a disconnect between Eni’s absolute emissions targets, which are the most ambitious of European peers, and its projected growth of fossil fuels.

Investors engaging with Eni should ask for

1) A quantified breakdown of decarbonisation levers. Eni has the most ambitious absolute targets compared to peers, aiming for a -35% reduction in net scope 1, 2, & 3 emissions between FY18-30. However, its target may be at risk, with plans to increase oil and gas production by up to 15% by FY30, the highest of its European peers.

2) Increased ambition for low-carbon investment. Eni’s short-term capex guidance is ~28% of group, placing its ambition only ahead of  Shell. In addition, the company does not provide low-carbon capex guidance to FY30. 

3) Match NCI ambition with peers. Eni’s FY30 NCI target is the least ambitious compared to peers at -15% between FY19-30 (vs -19%-20%).

Key findings