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Toolbox

The regulatory system

eni has adopted a governance system which identifies roles and responsibilities to guarantee functionality and effective operations in accordance with a reference framework composed of: legal dispositions, By-law, Code of Ethics, Model 231, Corporate Governance Code, CoSO Report.

The regulatory system is composed of orientation, coordination and monitoring tools (Policy and Management System Guideline - MSG) and operating instructions (Procedures, Operating Instructions).

ENI regulatory system

eni Regulatory System structure

The Policies are issued by the Board of Directors and set out the mandatory general principles and rules which are to guide eni's business.

The MSG's are used to manage operative processes and support business, including sustainability issues. Each company must adapt its own regulations to the provisions of the individual MSG's by means of suitable procedures and operating instructions.

In particular, specific policies and MSG's are available to support the implementation of the ten principles. This regulatory system allows to identify, measure, manage and monitor the main risks present in all the Group's entities.

ENI policy and msg

GC Area Framework of Reference Policy MSG
    Our people  
Human Rights   Our partners in the value chain Anti-Corruption MSG
  Legal requirements Global Compliance Anti-trust code MSG
Labour standards By-laws Corporate Governance HSE MSG
  Code of Ethics Operating excellence Procurement MSG
  Model 231 Our institutional partners Technological R&D MSG
Environment Corporate Governance Code Information management Finance and Accounting MSG
  CoSO Report Sustainability Security MSG
    Our tangible and intangible assets Human Resources MSG
The fight against corruption   The integrity of our operations  

eni is committed to partnerships with suppliers and external collaborators who demonstrate the utmost professionalism and commitment to shared company values.

The procurement MSG provides a set of guidelines shared throughout the company and across all markets in which eni operates. Vendor management is a set of activities with four principal phases: vendor details and goods group management; market intelligence; vendor qualification and feedback management.

The qualification process consists in evaluating, verifying and monitoring the technical and managerial capacity, the ethical, economic and financial reliability of a vendor according to objective elements. In particular, eni selects vendors able to guarantee references and capabilities also with reference to the fight against corruption, environmental protection, promotion of healthy and safe work conditions, protection of freedom against discrimination, prohibition of forced labour and child labour, freedom of association and collective bargaining.

Vendor evaluation must respect the principles of transparency, fair treatment and the Code of Ethics, and concludes with the definition of a qualification rating which includes the outcome of the evaluation and the major areas of poor performance and potential improvement.

A vendor's qualification generally applies for 36 months, except for cases in which different or specific periods of time apply.

Actions in response to negative feedback of suppliers

eni offers coaching and training activities to local businesses, so they are able to reach higher standards and performance levels, obtaining new supply contracts and international certifications.

In 2011, eni continued its commitment to the diffusion of the Vendor Management System (VMS) among its subsidiaries, with the objective of extending coverage to all Countries. In particular, VMS was launched and consolidated in 12 Countries in which eni has business activities: 6 in North Africa and the Middle East (Libya, Tunisia, Algeria, Egypt, Iran and Iraq), 2 in Sub-Saharan Africa (Angola and Congo), as well as in Russia, Pakistan, China and Australia. VMS is also being rolled out in Kazakhstan (KPO), the United States and Venezuela. The Countries have been chosen giving priority to geographical areas which are at greatest risk for the company in terms of sustainability issues and human rights.

Staff training activities have been initiated at subsidiaries in order to consolidate the professional position of "Local Supplier Quality Engineer and Vendor Management Coordinator", with responsibility for System management and actuation of audits.

Suppliers

SUPPLIERS   2009 2010 2011
Procurement by macro-class* (€ million) 35,205 32,626 34,275
- works   - 6,718 7,215
- services   - 15,029 16,674
- goods   - 6,326 7,181
Top 20 procurement percentages (%) 25 18 20
Suppliers (number) 35,113 33,961 34,064
Qualification cycles run during the year (number) 22,108 33,700 29,362
- of which negative (%) 9 12 13

* The data include infra-group procurements for an amount of 2,122 million euros.

Eni S.p.a. - Registered Head Office
Piazzale Enrico Mattei
00144 Roma

Branches
Via Emilia, 1
e Piazza Ezio Vanoni, 1
20097 - San Donato Milanese (MI)

VAT number
n. 00905811006

Company share capital
€ 4.005.358.876,00 paid up.

Rome Company Register
Tax Identification Number. 00484960588

Mission
We are a major integrated energy company, committed to growth in the activities of finding, producing, transporting, transforming and marketing oil and gas. Eni men and women have a passion for challenges, continuous improvement, excellence and particularly value people, the environment and integrity.