Saipem is committed to managing its operations in a sustainable and responsible way, to promoting dialogue and to consolidating relations with its stakeholders and sees these pledges as a vital requirement for building – particularly through the deployment of a strategy of local content – shared values that contribute to the socio-economic development of the areas in which it operates.

Saipem adopts a system of governance which seeks to ensure that its principles and values are translated into concrete actions. To do this, it employs a Management by Objectives approach, using management tools to set itself specific sustainability objectives.

The Sustainability Committee1, which exercises a sustainability strategy setting role, met three times in an official capacity during 2013 to discuss the results achieved in 2012, to approve the 2012 Sustainability Report, and to lay down lines of action for the next four-year period.

Measuring value creation in local communities

Saipem’s sustainability strategy focuses above all on the maximisation of Local Content, which means facilitating the transfer of knowledge and professional development with a view to creating job opportunities, increasing entrepreneurial skills and achieving growth in local human capital. As part of this strategy, Saipem is committed to quantifying its real contribution to the socio-economic development of local communities.

Accordingly, the year saw the continuing application of the SELCE Model (Saipem Externalities Local Content Evaluation), this time to perform an analysis of operations in Indonesia, Saudi Arabia and Australia. In addition, the results obtained in the previous analysis, which was carried out for Nigeria, were updated.

The Model consists of a methodology that enables the analysis and quantification of value generated (i.e. the direct, indirect and induced effects, measured in terms of economic value, employment and human capital development) by the local content strategy over a given time frame and in a specific geographical situation. Since 2009 the SELCE model has been applied in Kazakhstan, Angola, Peru, Algeria, Nigeria, France, Indonesia, Saudi Arabia and Australia and has been placed at the disposal of clients on a number of projects.

Sustainability reporting

Local sustainability projects, as well as stakeholder engagement and interaction initiatives, proceeded in 2013 in the areas where Saipem operates, in particular those in which the Company already has or expects to have a long-term presence. The main areas of intervention were in entrepreneurial and local skills development (Peru, Venezuela, Kazakhstan and Nigeria), improvements to the education and health systems (Kazakhstan, Azerbaijan and Brazil), health promotion campaigns (Congo, Angola and Nigeria) and providing support with medical facilities and connected services (Kazakhstan, Peru and Venezuela).

The development of local resources, with the aim of enhancing employment opportunities and increasing the income generated locally by the Company’s activities continued to be a central theme of Saipem’s development support programmes.

Further information on sustainability strategies, programmes and actions implemented during 2013 are detailed in the document ‘Saipem Sustainability 2013’ and are also published on the Company website.

Local Community initiatives

For the third successive year, Saipem has opted, based on the results of materiality analyses and sector benchmarking, to report on its sustainability activities through two complementary publications, whose structure remains unchanged from the previous year.

In order to ensure transparent disclosure and facilitate comparison with other actors present on the market, the document ‘Sustainability Performance’ is published as an Addendum to this Annual Report. ‘Sustainability Performance’ is drafted in accordance with the international guidelines of the Global Reporting Initiative (GRI - version G3). It describes the Group’s sustainability objectives and performances in 2013, including detailed qualitative and quantitative information and yearly comparisons.

The second document published is ‘Saipem Sustainability 2013’, which aims to describe the commitments undertaken, initiatives concluded and the results obtained by Saipem in relation to themes considered material by its stakeholders.

‘Saipem Sustainability 2013’ covers the following principle areas: local development and the promotion of Local Content, skills and personnel management, including the promotion of health and safety, business opportunities and business integrity, supply chains, human rights and working conditions.

The document also contains numerous country focuses which testify to the concrete realisation of sustainability strategies at operating sites.

Furthermore, for the fourth year running, Saipem will call on a panel of external and independent experts to provide comments on the quality of reporting and on Saipem’s sustainability initiatives and strategy. 2013 also saw the panel participate in the preparation and design of the report. In October 2013, an Expert Panel Workshop was held to discuss the principal themes proposed for inclusion in the Saipem Sustainability 2013 and to carry out a materiality analysis. The results of the workshop served as input for the preparation of the report.

During the year, Saipem continued communications targeted mainly at local stakeholders in the form of ‘Country Reports’ and ‘Project Reports’ focusing on key countries or significant projects.

The year also saw the publication of a report on the ‘Puerto Nuevo’ project in Colombia and Country Reports on Nigeria (an update to the previous edition) and Angola (produced in both English and Portuguese).

(1) The Saipem Sustainability Committee is composed of the Chief Executive Officer (Chairman) plus the heads of the Company’s business areas and managers of key functions.