Snam: Snam unveils its first Transition Plan, net zero target by 2050

(Alliance News) - Snam Spa announced Thursday that it has unveiled its first Transition Plan, a roadmap he outlines the path toward achieving net zero by 2050, with the goal of supporting the decarbonization of the energy system. The plan, approved by the board of directors, sets out the actions and resources the company will deploy to contribute to the energy transition, focusing on a low-carbon economy. Key goals of the transition plan include net positive impact on nature by 2027, 52 percent of investments aligned with EU taxonomy by 2032, and carbon neutrality by 2040, with a transition to net zero for all emissions, including scope 3 emissions, by 2050. Snam considers its assets "critical" to support decarbonization, particularly for energy sectors and those hardest to bring down in terms of emissions. Chairman, Monica de Virgiliis, and CEO, Stefano Venier, in presenting the plan, stressed the importance of a transparent and robust roadmap to support the group's and Italy's ambitious energy transformation. Venier said that at this crucial time on the path to net zero, the plan is an important step in ensuring a positive impact on nature and reducing global emissions. The document is updated to reflect advances in the energy system and technological innovations, based on long-term scenarios that represent the evolution of Italian energy demand, consistent with the National Integrated Energy and Climate Plan 2024 and European scenarios developed by continental grid operators. Through these scenarios, Snam has confirmed that its business model sees only a very small portion-1 percent of the pipelines-at risk of underutilization by 2040 and less than 10 percent by 2050. In the context of net zero, Snam is committed to reducing its CO2 emissions, which have already decreased by 10% since 2022. The company expects further reductions of 20 percent by 2024, with the goal of reducing them by 25 percent by 2027, 40 percent by 2030, and 50 percent by 2032. Methane emissions are also a priority for Snam: after declining 57.5 percent in 2023 compared to 2015, the company plans to further reduce them by 64.5 percent by 2027 and 72 percent by 2032. On the biodiversity front, Snam is committed to achieving zero net conversion as early as this year and generating a positive impact on nature by 2027. These goals include complete vegetation and landscape restoration, with clear policies on land, water and waste management. Another central aspect of the plan is the decarbonization of the energy system, where Snam aims to play a key role through the development of biomethane transioneering, hydrogen, carbon capture and storage, and energy efficiency activities. These efforts are supported by an investment program of EUR26 billion over the period 2023-2032, divided into two phases. The first, from 2023 to 2027, includes EUR11.5 billion earmarked to ensure global asset reliability while reducing the carbon footprint. The second phase, from 2028 to 2032, will bring total investments to EUR14.5 billion, focusing on infrastructure transformation to a multi-molecule system, with a focus on the development of the H2 backbone and the Ravenna CCS project. Sustainable finance is a key pillar for Snam in pursuing its sustainability goals. The company aims to increase the share of sustainable finance, which has already risen from 40 percent in 2020 to 80 percent in 2023, and plans to reach 85 percent by 2027. A significant portion of these financings is tied to sustainability-linked instruments, which vary financial terms depending on the achievement of specific sustainability KPIs. Snam shares are up 0.6 percent at EUR4.55 per share. By Antonio Di Giorgio, Alliance News reporter Comments and questions to redazione@alliancenews.com Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.