Disclosure on management approach

The table below discloses the management approach to sustainability issues pursuant to the Guidelines of the Global Reporting Initiative, version G3.0. All documents mentioned are available on the Company website www.saipem.com.

Economic performance

Saipem is an international Oil&Gas contractor whose revenues in 2013 totalled €12 billion. The Company has in excess of 52,000 employees and is present in more than 70 countries, often on a medium- to long-term basis and in difficult or ‘frontier’ conditions. For this reason, the Company is committed to minimising any negative impacts on those areas and to contributing to the maximisation of positive impacts through the implementation of local sustainable development strategies.

Further details can be found in the ‘Annual Report 2013’ and in the chapter ‘Developing long-term competitiveness’ of ‘Saipem Sustainability 2013’.

Environment

For Saipem, supplying excellent products and services goes hand in hand with its commitment to environmental protection. Saipem has defined an HSE management system that constitutes a benchmark for all productive units and that requires systematic auditing in order to ensure compliance with national and international legislation and regulations and with the conditions of contracts entered into with Clients. Alongside the HSE and Environmental Managers and their teams working in Corporate and in the main operating companies, each operating project is specifically assigned an HSE team. Reducing environmental impacts to a minimum is an objective found along the entire life cycle of a project, from engineering phase through to de-commissioning. Furthermore, technological innovation at the service of Company assets is combined with the implementation of best practices on operating projects to pursue constant improvement of the Company’s environmental performance.

Further information can be found in the chapter ‘Minimising environmental impacts’ of ‘Saipem Sustainability 2013’, in the Directors’ Report contained in the ‘Annual Report 2013’, in the section ‘Commitments, results and objectives’ of this Addendum and in the ‘Sustainability’ section of the Company website.

Labour practices and indicators of decent working conditions

Saipem believes that human capital is a key element for its durable competitive success. This is why it is vital to ensure adequate protection of labour, the continuous development of skills and competences, the creation of a working environment that offers equal opportunities for all on the basis of merit and without discrimination, while at the same time guaranteeing respect for and adaptation to the characteristics of individual situations. The workplace health and safety of all Saipem personnel are a priority objective and are constantly monitored and guaranteed in the Company’s operations management activities through an integrated HSE management system. Industrial relations are handled with due regard for the specificities of local socio-economic contexts as well as for labour laws in force in the country where the Company is operating.

Further information can be found in the chapters ‘Competency as a business driver’ and ‘A safe workplace and a healthy workforce to ensure excellence’ of ‘Saipem Sustainability 2013’, in the ‘Sustainability’ section of the Company website, in the Directors’ Report contained in the ‘Annual Report 2013’ and in the section ‘Commitments, results and objectives’ of this Addendum.

Human rights

Saipem complies with international human and workers’ rights legislation and in turn is committed to ensuring that its own suppliers duly observe these. Saipem’s sustainability policy declares explicitly that ‘respect for Human Rights is the foundation of inclusive growth of societies and local areas and, consequently, of the companies that work within them’. Saipem contributes to the creation of the socio-economic conditions required for the effective enjoyment of fundamental rights and promotes the professional growth and well-being of its own local human resources. As expressed quite clearly in the Code of Ethics, Saipem undertakes to spread knowledge of Company values and principles, including by implementing suitable procedures of control, and protecting the specific rights of local populations.

Further information can be found in the Code of Ethics, in the Sustainability policy, in the chapters ‘Competency as a business driver’ and ‘Local Content approach: delivering shared value’ of ‘Saipem Sustainability 2013’, in the ‘Sustainability’ section of the Company website, in the Directors’ Report contained in the ‘Annual Report 2013’ and in the section ‘Commitments, results and objectives’ of this Addendum.

Society

Saipem is committed to contributing to the long-term social and economic development of the countries in which it operates. This result is mainly pursued through the employment of local personnel, the transfer of know-how (technical and non-technical) and procurement of goods and services from local suppliers. With a view to minimising impacts on local populations and areas, Saipem has implemented specific tools to analyse the local context and identify areas of intervention and lines of action. As regards relations with local areas, Saipem avails of a process for identifying the main stakeholders, as well as the means for involving them in a way conducive to constructive and ongoing dialogue.

Further information can be found in the Sustainability policy, in the chapters ‘Partnering with local communities’ and ‘Local Content approach: delivering shared value’ of ‘Saipem Sustainability 2013’, in the ‘Sustainability’ section of the Company website, in the Directors’ Report contained in the ‘Annual Report 2013’ and in the section ‘Commitments, results and objectives’ of this Addendum.

Responsibilities for products

Customer satisfaction is a key factor of sustainable business. Quality and HSE management systems have been implemented on each Saipem project to realise quality products and services and to perform activities in conditions of maximum safety. In compliance with Corporate policy for Quality, all of Saipem’s operating companies have implemented a Quality Management System in accordance with ISO 9001, Corporate guidelines and the relevant standards. A Customer Satisfaction system has also been designed and implemented.

Further information can be found in the Sustainability policy, in the chapter ‘A safe workplace and a healthy workforce to ensure excellence’ of ‘Saipem Sustainability 2013’, in the Directors’ Report contained in the ‘Annual Report 2013’ and in the section ‘Commitments, results and objectives’ of this Addendum.