Snam: 26 billion plan to 2032 to zero all emissions by 2050

A €26 billion investment programme for the period 2023-2032 to be implemented in two steps: a first tranche of €11.5 billion, from now until 2027, will be used to ensure the reliability and resilience of the gas infrastructure, while reducing the carbon footprint, while the second tranche - €14.5 billion from 2028 to 2032 - will support the evolution of the system, also covering the reconversion of assets to accommodate gradually increasing flows of hydrogen and other decarbonised molecules. These are the two main axes of Snam's Transition Plan, which was approved by the group's board of directors and whose contents were illustrated by chairman Monica de Virgiliis and CEO Stefano Venier.

The plan of Snam, one of the first companies to implement such a strategy, therefore contains a detailed roadmap to define the group's path towards net zero and precise targets related to the biodiversity of ecosystems affected by the presence of plants and pipelines. "Snam's first Transition Plan provides a comprehensive set of initiatives, metrics and Kpi to support a credible transition to net zero by 2050," explained Snam's number one, Stefano Venier. "In the complex journey to net zero, now is the right time to act through a full-fledged sustainability roadmap with a solid and credible path to net zero emissions and a positive impact on nature. An increasing share of sustainable finance will help us achieve our ambitious decarbonisation goals."

The first message that comes from the Transition Plan is the confirmation of the resilience of Snam's multi-molecule business model, which is mainly based on the use and physical risk exposure of assets along the entire route to 2050 and beyond: only 1% of pipelines have an under-utilisation risk until 2040 and less than 10% in 2050. Not to mention that Italy's position as a hub for energy flows to Europe will help support Snam's role and vision of becoming a pan-European multi-molecule operator in the long term.

The plan then confirms the targets on emissions reduction: carbon neutrality (video) to 2040 on direct emissions (down 10% between 2022 and 2023) and net zero to 2050 on all emissions, including suppliers. Compared to 2015, Snam has also reduced its methane emissions by 57.5% in 2023 and, on the strength of the Gold Standard recognised by Unep for this commitment, is already looking ahead to the next targets: -64.5% by 2027, -70% by 2030 and -72% by 2032.

On the biodiversity front, on the other hand, Snam has set itself the twofold objective of zeroing its impact on nature as early as this year and making it positive, thus improving the ecosystems through which it passes, from 2027. In essence, the group is committed to the complete restoration of vegetation and landscape ex ante combined with defined policies on land, water and waste management.