Saipem Sustainability 2015
Saipem Sustainability 2015
Saipem Sustainability 2015
2015
Mission
We approach each challenge with innovative, reliable and secure solutions to meet
s u s tain
saipem
ab
10th
ilit y
Edition
A look ahead
Saipems sustainability approach for long-term success
A dialogue between Stefano Cao, Saipem CEO, and Marco Frey1, Chairman of Global Compact Network Italy Foundation.
Marco Frey
Mr. Cao, 2015 was an important year for sustainability: new objectives were set in the 2030 Agenda for Sustainable
Development. Then there was the COP 21 in Paris, which led to an agreement among several countries for an overall
commitment regarding Climate Change. So to a certain extent, there is an international framework that recognises the
significance of all sustainability issues. How is a company like yours, which has always been engaged in Sustainability, also
for reasons related to its core business, experiencing this moment?
Stefano Cao
There is no doubt that 2015 was a very important year. For Saipem in particular it has been a very intense period. A new Industrial
Plan was defined, the Companys cost structure was modified and an increase in Saipems share capital2 was completed in the first
weeks of 2016. In addition, the market scenario that the Company had to face was very complex and multi-faceted, from the point of
view of the socio-economic contexts of the countries in which we operate and in terms of energy outlook.
Being present in many areas of the world, together with having a highly diversified business offer, is our anchor. This
clearly implies exposure to global Sustainability issues and their evolution. Given this context, we have to move forward
with the topics linked to the scenario, hence to corporate restructuring, while at the same time we need to tackle the
ones that are part of the reality in which we operate. Sustainability has always been in Saipems DNA. We are now adapting
to the changing context by leveraging on our skills and abilities, as well as on the network of relations we have established
in the countries in which we are present. In fact, our presence in these countries was initially focused on promoting health
and safety at work and respect for the environment. Considering the existing and future scenario, together with our highly
diversified business offer, our long lasting local commitment becomes an opportunity for us. Today we are committed to
making the Company processes more effective, efficient and transparent. And all of this will have an impact on specific local
issues and contexts ranging from the management of our people, to suppliers and communities.
Marco Frey
Being able to strike the right balance between standing on solid footing while embracing elements of change has various
manifestations. In my opinion, the most significant among these is governance. Facing the issue in a way that is both
appropriate yet transparent implies adopting a governance where sustainability is fully integrated and legitimised. Can you
tell us what you have done and what you are doing in this regard?
(1) Marco Frey is also Director of the Institute of Management of SantAnna School of Advanced Studies, Full Professor of Economics and Business Management,
leader of the Sustainability Management Research Group (SuM) at SantAnna School, Research Director at IEFE (Centre for Research on Energy and
Environmental Economics and Policy - Bocconi University) and National President of Cittadinanzattiva, a non-profit organisation.
(2) In addition, Eni sold a holding amounting to 12.5% of the share capital of Saipem to Fondo Strategico Italiano (FSI) and the governance covenants set out in the
2 Shareholders Agreement aim to achieve joint control of Saipem.
SAIPEM SUSTAINABILITY 2015 3
Stefano Cao
Thanks to its recent evolution, today Saipem is equipped with an advanced Corporate Governance system. The only way
to operate in many countries of the world and with such complex and diversified businesses is indeed to have robust
governance structures. In view of continuous improvement it is essential that this system be in constant evolution, not
static. However, this evolution should not be guided by the pursuit of compliance. In this framework it is important that
sustainability be a foundational element of governance, a natural element spread throughout Saipems leadership model,
increasingly integrated into the Companys processes.
Marco Frey
I wholeheartedly agree with your statement. Another field that spans between sustainability and the need for innovation is the
relationship with the local contexts. Saipem is the demonstration of a modus operandi where the logic was to build relationships
throughout the territory that would make it possible to give back some benefit to the countries. That is probably no longer the
challenge today. Giving back has now taken on a much more innovative and evolutionary meaning because these countries have
grown a great deal over the years. In this mindset, what are the new challenges related to local contexts?
Stefano Cao
For many years it was of great importance to employ local resources and create opportunities for professional growth.
Building industrial bases and fabrication yards were essential to obtain a licence to operate in a broader sense. Over time,
these conditions ended up being necessary but were clearly not enough. The real challenge is to focus on the aspects
that will ensure the socio-cultural growth of these areas. The process is underway and we must see to it that our level of
engagement continues to be attentive and widespread throughout.
Marco Frey
Another important aspect correlates to this. In global competition, there is a need to rethink the logic of the relationship
with ones own supply chain, and the overall offer that an operator such as Saipem can provide. In the past, project
success was guaranteed by having highly-skilled and quality people. Is the ability to contribute to the development of local
contexts becoming nowadays a part of the supply system?
Stefano Cao
Absolutely, the contribution to the development of local contexts is now part of the supply system. The evolutionary
process is leading to a kind of multi-location identity. The Company is still Saipem but it is perceived differently in every
country. Saipem contributes to the socio-economic development without being philanthropic, successfully integrating
its activities within the socio-cultural fabric of the country. In this sense, I am in favour of Saipem joining the UN Global
Compact in 2016. I see it as a roundtable for continuous discussion in order to gather ideas for improvement and to which
we can bring, with humility yet with great conviction, our contribution by way of our vast and wide-reaching experience.
Our commitment has always been focused on sustainability as an increasingly integral part of the planning system. This
also culminates at the end into the management incentive system. We must make it a rewarding and measurable goal,
something that contributes to the orientation of resources and also to the improvement of the Companys functional
processes.
Marco Frey
This is consistent with the objective of the Global Compact to integrate sustainability into the business by way of its operational
nature. If you had to choose a sustainability indicator that the stakeholders could use to measure you, what would it be?
Stefano Cao
The instinctive answer to such a specific question is: the ability to innovate, an aspect that has always distinguished
Saipem and that will increasingly characterise it in the future. Innovation across the board: technological innovation,
offered critically and constructively in the face of issues, not taking anything for granted nor as a given, not falling into the
trap of simplifying by saying we have always done it this way, always asking if the current approach is still effective or if
we should adapt it to new contexts.
Marco Frey
In fact, continuous improvement pursued through innovation.
Stefano Cao
Indeed, I think this is the main challenge that we are facing and that we will be able to overcome thanks to Saipems
integrated approach to sustainability.
Materiality assessment:
identifying sustainability
priorities
A strong and focused materiality assessment is the cornerstone of a sustainability strategy that is consistent with the core
business, meets stakeholder expectations, and produces high-impact results for the Company and for society.
Materiality is about identifying the issues that matter most to Saipem and its stakeholders. Saipem plots the issues that are
considered important for its long-term business success against those that pose risks or opportunities to the Company.
5th 31 7,428
EDITION TOPICS ANALYSED EMPLOYEES INVOLVED
76 23 12
EXTERNAL STAKEHOLDERS REPRESENTATIVES OF SAIPEM MATERIAL ISSUES IDENTIFIED
INTERVIEWED/SURVEYED MANAGEMENT ATTENDED
4 THE WORKING SESSION
SAIPEM SUSTAINABILITY 2015 5
6 INTRODUCTION
21 Integrity-based business
47 SAIPEMS WORLD
48 Italy
54 Angola
58 Congo
62 Nigeria
66 Azerbaijan
70 Kazakhstan
78 Indonesia
82 Brazil
94 ASSURANCE STATEMENT
ANNEX
I Approach to Sustainability
Market trends
Today, Saipem operates in a complex scenario that is influenced by significant macro-factors:
An increase in political risks generally concentrated in a small number of countries, particularly North Africa and the Middle
East (MENA) and the economic consequences of tensions between Russia and the Ukraine that have led the European Union
to apply sanctions on the former.
A difficult scenario marked by hostilities in the Middle East and by the nuclear agreement (Joint Comprehensive Plan
of Action) signed in July 2015 which requires Iran to dismantle much of its nuclear infrastructure in return for the removal
of many international sanctions placed on it over the past five years.
An oversupply of oil, that started in 2014, caused by increased production in North America, a demand for oil in Asian
countries that is below expectations and the conscious decision of OPEC countries not to regulate the overcapacity of global
supply by reducing their production.
A collapse in oil prices beginning in the second half of 2014, during which the price reached a minimum of below 30 USD/bbl.
This has impacted all oil companies who have seen their revenues and future investment plans significantly reduced, forcing
them to restructure in order to improve internal efficiency and reduce operating costs.
The slowdown of emerging economies, in particular Brazil and Russia, the deterioration of terms of trade among primary
commodity-exporting countries, currency volatility, capital flight, Chinas partial economic deceleration and the rise of Islamic
extremism in most countries with significant Muslim populations.
Collective support for an effective global climate change agreement with a joint collaborative declaration, expressed
by the member companies of the Oil and Gas Climate Initiative (OGCI), recognising climate change and the role of current
emissions. However, the global agreement on climate change action at the Paris COP21 meeting seems insufficient to alter
world carbon dioxide (CO2) emissions and deter the rise in global temperatures by 2 C by 2050 (*).
Despite the downturn, investment in clean energy in 2015 totalled around USD 330 billion, an overall increase of 4%
compared to the previous year. Driving these figures are the Far East and South America markets (Brazil, Mexico and Chile)
in particular, as well as Morocco, a new entrant. According to Bloomberg, renewables will represent 60% of new capacity
and 2/3 of power investment globally by 2040.
To meet the challenges of the market, Saipem intends to recover efficiency through distinctive elements such as technology
and innovation. In particular, it will target segments with higher added value, such as SURF (Subsea Umbilical Risers and
Flowlines), floaters dedicated to natural gas liquefaction such as FLNG (Floating Liquefied Natural Gas) units and export lines
and trunklines.
in North America (USA and Mexico), where there have been major contracts in the LNG, Petrochemical, Fertiliser and
Refining segments; Asia-Pacific (China and Pakistan), mainly in the Pipeline and Petrochemical segments; the CIS (Russia
and Uzbekistan), with contracts awarded in the Refining and Fertiliser segments; and Central Africa (Uganda) and North Africa
(Egypt), where contracts in the Refinery segment have been awarded.
The Offshore E&C market recorded a lower number of contracts awarded due to budget cuts by many operators, which led
to a reduced level of investment during 2015 compared with 2014. To face the recession, many players have decided to cancel
or postpone the construction of new vessels, thereby contributing to a re-equilibrium in the Offshore E&C market.
During the year, the volume of investment from oil companies in Onshore Drilling registered a decrease from around USD 230
billion in 2014 to around USD 130 billion in 2015. Among all geographic areas, North America was the most affected.
The same trend is visible in Offshore Drilling, with a conspicuous decrease in investments, in particular in Asia-Pacific.
Starting from the end of 2014 there have been several cases of reduction or postponement of previously planned drilling
activities.
In order to face this difficult market environment, Saipem has initiated a long process of refocusing its portfolio through
the revitalisation of leadership, in particular in the Offshore E&C business, and the gradual recovery of the economic
and financial performance of the Onshore E&C business. Simultaneously, a process is under way to reduce the risk profile
of the business in which the Company currently operates. In particular, it aims to increase the share of EPCM (Engineering,
Procurement, Construction Management) services, strengthen cooperation with strategic partners in the value-added
segments, give more attention to the phases of the project management process and emphasise relationships with major
customers in order to prevent and reduce potential grounds for dispute.
Market outlook
In this context, the markets are registering a hard landing and the worlds wealth is growing at a slower rate than expected.
Negative GDP trends can be seen especially in the CIS, South America and China, while a slow recovery is registered in Europe.
The expansion of the global economy could be led by a combination of solid growth in the United States, a slight pick-up
in the pace of the Eurozone and Japanese economies and more monetary stimulus in key markets, adding up globally to a
growth of around 3% in 2016 and an average of 3.3% over the following five years.
While lower energy prices will benefit large energy-consuming industries and should also provide some marginal benefit
to individual consumers across the world in terms of greater spending power (thus helping to fuel an eventual economic
recovery), continued falling prices could be harmful for many emerging-market commodity exporters and would also mean
headwinds for business investment in resource-rich advanced economies such as North America, Australia and Norway.
The stagnant growth in oil consumption, without regulation of production, has favoured the decrease in upstream spending,
seeing a reduction in total investment of around USD 195 billion between 2014 and 2015, in particular in North America (-60%)
and Asia-Pacific. The return to previous levels of investment opportunities is now broadly expected to occur in the medium
term, through a slow recovery over the next few years.
279 Italy 2,509 Middle East 496 Italy 5,798 Middle East
322 Rest of Europe 126 North Africa 587 Rest of Europe 4 North Africa
1,725 CIS 956 South and Central Africa 2,410 CIS 4,651 South and Central Africa
123 Oceania and rest of Asia 475 Americas 370 Oceania and rest of Asia 1,530 Americas
Saipem at a glance
Saipem is one of the world leaders in drilling services, as well as in the engineering, procurement, construction and installation
of pipelines and complex onshore and offshore projects in the Oil & Gas market. The Company has distinctive competences
in harsh environments, remote areas and deep water. Saipem provides a full range of services with turn-key EPC and EPCI
contracts and has distinctive capabilities and unique assets with a high technological content. Saipem has been listed on the
Milan Stock Exchange since 1984.
11.5
TOTAL
bln
SALES
70
NUMBER OF COUNTRIES
WHERE SAIPEM OPERATES
15.8
TOTAL
bln PRESENT IN ALMOST EVERY OIL & GAS MARKET
AROUND THE WORLD
BACKLOG
46,346 128
NUMBER OF SAIPEM NUMBER OF EMPLOYEE
EMPLOYEES NATIONALITIES
25
AVERAGE TRAINING
59% 32,931
Percentage of Vendors
HOURS ATTENDED employees covered
BY EMPLOYEES by collective
bargaining
8.3 bln contracts
INCLUDED IN THE
Total goods and
services ordered
234 mln
WORKED MAN-HOURS
FTSE4GOOD SERIES
INDEX FOR THE 6TH
92B
SCORE ACHIEVED
YEAR RUNNING
IN CARBON
DISCLOSURE PROJECT
0.31 1,504
LOST TIME INJURY Scope 1 emission
FREQUENCY RATE (kt CO2 eq)
8
SAIPEM SUSTAINABILITY 2015 9
Transparency Provide complete information Continued to adopt a flexible and Refer to pages 12-13 for further
that meets stakeholder diversified approach to stakeholder information on stakeholder
expectations and current engagement. engagement in 2015.
regulations.
Training Bringing peoples competencies Continued mapping, developing and 4,897 skill evaluations.
and development in line with business needs. monitoring skills. 18,446 employee performance
assessments.
Further information is available on
page 40.
Safe operations, Ensure integrity of assets Strengthening of efforts on asset Commenced the integration of
asset integrity and process security by integrity and process safety human factor issues into the
and process strengthening the managerial management. management system. For further
safety levels involved. details please see page 30.
Safety Reinforce H&S processes Improvement of Total Recordable TRIFR (1.08) slightly down compared
and managerial capacities, Incidence Frequency Rate (TRIFR). to 2014. Further information is
including those of vendors and available on page 32.
contractors. Continuation of the We Want Zero Further details on page 18.
programme.
Continuation of the LiHS programme Further details on page 41.
Leading Behaviours.
Renewed commitment to the Life Further details on page 20.
Saving Rules campaign.
Social licence Boost work with local Continued Saipem effort to Refer to the section Saipems world
to operate stakeholders, including strengthen fruitful relations with local (page 47) for further information
universities and training centres. stakeholders. on local stakeholder engagement
and on partnerships held with local
community representatives.
Local Increase local personnel, Promotion of Local Content, including 80% of total workforce is local.
employment especially middle and senior through specific training and career
managers, taking gender equality programmes for the development Further details on programmes
into account. and professional growth of local aimed at developing local skills are
personnel. available in the section Saipems
world (page 47).
Local Prioritise controls over Human Confirmed commitment to supporting 68% of goods and services ordered
Procurement Rights, with specific reference to local economies, optimising local locally (+12% compared to 2014).
geographical area and coverage. orders. 13 audits held in India, China, Saudi
Audits carried out on vendors in Arabia and Bahrain. Further details
relation to workplace principles and on page 75.
rights.
Spill prevention Reduce the frequency and Continued the effort to reduce the Reduced number (38) and volume
and response volume of spills, and improve frequency and volume of spills. (2.18 m3) of spills compared to 2014
spill response measures and (50 and 21.6 m3).
systems. Continued effort to consolidate spill Saipems approach and efforts can
response measures. be viewed on pages 33, 34 and 53.
Anti-corruption and ethical Safety: reinforce safety processes
business practices: run operations and people competencies,
respecting ethical business best including those of vendors and
practices. subcontractors.
Promote employee awareness
of anti-corruption.
Safe operations, asset integrity
Transparency: provide complete and process safety: run safe
information that meets stakeholder operations for people and the
expectations and current environment and ensure integrity of
regulations. assets.
2016
Sustainability
Plan
10
SAIPEM SUSTAINABILITY 2015 11
1 2
Identification Definition
and analysis of the relations
of stakeholders strategy
Stakeholder
engagement
Monitoring Implementation
and of
reporting relations
4 3
10
This general approach was developed to guarantee open, transparent relations
with the parties involved, tending to promote positive and reciprocally advantageous
interactions. This approach has also enabled Saipem to build successful relations with
its stakeholders in many parts of the world over the years, thereby ensuring a lasting COUNTRIES WHICH HAVE A
presence and effective implementation of its activities in the areas where it operates. STRUCTURED PROCESS IN PLACE
Engagement
Presentation of the new Business Plan and
the overall strategy, including the launch
of a capital increase in 2016 during the
Approach Investor Day held in London in October. Feedback
Saipems investor relations are based Organisation of 13 road show days The financial stakeholders are very
on continuous dialogue with the financial and attendance at 3 international interested in the Companys management
community. This is carried out in investor conferences where Company practices, particularly in corporate
compliance with the rules and regulations representatives exhibited Saipems governance and the system of internal
designed to ensure full transparency activities and results. control. Another topic considered highly
and equal access during the disclosure 2 reverse-road show days hosted in Milan. significant concerns the management of
of confidential information. Over 450 individuals, including portfolio human resources. The stakeholders who
Information is directly shared with managers and buy/sell side analysts, responded to the questionnaire assessing
Financial investors and the market through press
releases, periodic presentations of
contacted through one-to-one meetings,
group meetings and conference call or
materiality issues said that sustainability
is already, or will soon become, a factor
stakeholders financial results and the documentation video conference meetings, while more affecting investment decisions. Investors
widely made available on the Company than 1,350 people attended the four showed interest in Saipems approach to
website, as well as periodic meetings quarterly financial results conference calls climate change. Indeed they renewed the
with institutional investors and financial and webcast. invitation to Saipem to participate in the
analysts. Individual shareholders are mainly 10 financial stakeholders involved in Carbon Disclosure Project (CDP) 2016.
involved through interfacing with the Saipems Materiality Assessment.
Company Secretary function. Preparation of specific reports regarding
aspects of sustainability for Engagement
International, the Ethical Council, FTSE4Good,
Generali AM, GES, ISS Ethix, MSCI,
RobecoSAM, SustainAlytics and Vigeo.
Saipem also participated in the Carbon
Disclosure Project (CDP).
Approach
Reporting on operating projects is
constant: project managers and project Feedback
staff meetings with clients, who are often The clients provided their feedback through
present on-site, and reply on-the-ground to the Customer Satisfaction questionnaires
Clients their queries and requests. Clients are also Engagement (91), also expressing their opinion on
involved in HSE training initiatives, such as Customer Satisfaction questionnaires. the methods used by Saipem in its
environmental awareness campaigns or Direct meetings with clients in countries management of local stakeholders and the
the LiHS (Leadership in Health and Safety) like Azerbaijan, Brazil, Canada, Mexico, value generated in the area.
programme. At the end of each project, and Mozambique, Oman and the United In addition, the questionnaire for the
on an annual basis, the client is asked for States, to involve them in sustainability assessment of materiality was used
feedback using the Customer Satisfaction aspects. to indicate their expectations from a
tool. Furthermore, meetings with clients or 29 clients involved in Saipems contractor like Saipem. A number of very
potential clients are organised in pre-bid Materiality Assessment. interesting issues linked to operating
and bid phases and can involve a number Direct involvement in a few projects, efficiency and the protection of health
of specific aspects such as Saipems especially in Angola and Indonesia, in and safety, promotion of Local Content and
approach to sustainability. initiatives for the community in the area. community relations, arose from the study.
Engagement
Launch of the second Strategy LineUp, a
cascade-type process of communication
of the strategic priorities and corporate
goals to all Company employees. It was
implemented in 54 countries around the
world, for a total of 80 meetings. Feedback
Inclusion for the first time of the This year, the Company obtained direct
sustainability section in the 2015 feedback through the Engagement Survey
Engagement Survey and responses regarding the expectations and level
Approach from about 8,000 employees. of satisfaction of its own employees.
Employees Human capital is a fundamental asset for Involvement of local employees in several The majority of employees show strong
the Companys long-term success. Saipem countries, such as Brazil, Indonesia, attention to sustainability themes and
is particularly committed to recruiting Kazakhstan, Peru, and Venezuela, in local recognise their importance in Saipems
talented personnel and promoting their sustainability initiatives. economic performance and future
development, their motivation and their
skills.
Organisation of the HOPE (Human strategy. Safety, People Management
OPerational Environment) programme, and Technology Innovation were the most
Saipem works to guarantee a safe, a specific training course on Human important issues.
healthy working environment and to have Rights, involving local management and
a stable relationship with trade unions clients representatives in Angola.
so as to ensure an open dialogue based
on cooperation.
Meetings and workshops on sustainability
targeted at managerial positions.
Engagement
Institutional relations and, in many
cases, proactive cooperation
to implement joint local development
Approach initiatives.
Engagement with governments and, above Cooperation with health ministries,
all, local authorities is defined in relation to hospitals or local medical centres for
the circumstances in which Saipem awareness raising projects concerning
Local authorities operates, taking into consideration the diseases such as malaria or AIDS in
specificities of the country and the social countries, for example the Congo, Angola Feedback
and governments context. Alongside institutional and official and Nigeria, and other types of cooperation Observance of local laws and cooperation
relations with the authorities, Saipem with local health authorities in Peru, Angola, are priority requirements for the
cooperates with public bodies to launch Brazil, Indonesia and Kazakhstan. local authorities and governments.
initiatives in favour of local communities A number of cooperation projects The opportunity to cooperate proactively
and the development of local areas. on different issues undertaken in on matters that are important for the
Kazakhstan, Italy, Indonesia, Azerbaijan country is always considered constructive
and Angola. and beneficial to both parties.
5 representatives of local authorities
in Indonesia, Kazakhstan, Brazil and
Italy involved in Saipems Materiality
12 Assessment.
SAIPEM SUSTAINABILITY 2015 13
Engagement
Aofpublic meeting held with the population
the Kuryk village to present and
Feedback discuss the Ersai sustainability plan.
Feedback obtained from the local Several meetings held in Nigeria with
Local communities
communities is monitored as described the Rumuolumeni communities with Approach
in the Stakeholder Engagement process a view to updating the Memorandum Saipem considers the needs of the local
(see page 11). In some countries, such as of Understanding (MoU). communities and contributes to their
Nigeria and Azerbaijan, the Company has Initiatives and projects for cooperation progress in terms of social and economic
also implemented grievance monitoring with local communities implemented development and improvement of living
systems. in Angola, Bolivia, Brazil, Colombia, conditions. Each operating company or
Representatives of the local communities Congo, Indonesia, Kazakhstan, Nigeria, project has a specific approach to relations
have used Saipems Materiality Assessment Peru and Venezuela. with local communities that takes account
questionnaire to express their opinions Cooperation in many countries with of Saipems role and the socio-economic
about how Saipem operates and what their local schools and universities to and cultural context in which it operates.
priorities are. encourage the development of human Saipem actively involves local communities
capital. Some initiatives include the in the implementation of initiatives aimed at
organisation of internship and research promoting socio-economic development.
projects (Angola, Azerbaijan, France
and Indonesia), the distribution of
scholarships (Croatia and Nigeria),
and the provision of training courses
(Nigeria and Italy).
7 representatives of universities and
other local institutions, associations
and non-governmental organisations in
Europe, South America and Asia involved
in Saipems Materiality Assessment.
Engagement
Several initiatives for communities
developed through partnerships and
cooperation with non-governmental
organisations.
Cooperation with the Eurasia Foundation
Feedback of Central Asia (EFCA) in Kazakhstan Approach
Non-governmental organisations can with a view to completing initiatives Through its institutional channels, Saipem
express interest in one or more specific aimed at education in the local regularly publishes information about its
topics on which they focus their attention community. corporate governance and internal control Local organisations
and mission. Work with Junior Achievement system, its company management systems,
In general, the issues that appeared most Azerbaijan (JAA) to reinforce the as well as its objectives and performance. and NGOs
important to these stakeholders concerned technical skills of university students Moreover, in order to facilitate the
education, environmental protection continuing in the programme. implementation of specific projects,
and biodiversity, and respect for Human In Angola, cooperation with the Saipem identifies organisations of proven
Rights with particular attention to the Mentor Initiative on projects aimed experience with which to establish short
subject of diversity. at combatting malaria, and improving or medium-term relations.
Generally speaking, the possibility the skills of local medical personnel.
of cooperating directly with Saipem on 3 representatives of non-governmental
issues of interest is considered positive organisations involved in Saipems
and advantageous. Materiality Assessment.
Feedback
The suppliers involved in the training
sessions provided highly positive feedback Engagement
on the activities organised. Periodic meetings with vendors
The six Italian suppliers interviewed with strategic agreements.
described Saipem as an important partner sites in India,
Audits on social responsibility at vendor Approach
with which they had been able to grow, China, Bahrain and Saudi Vendors are often considered key partners
participate in challenging projects and Arabia. for the success of Saipems business.
cooperate for many years with satisfaction. HSE and social responsibility forums for Saipem is committed to developing and Vendors
The results of Saipems Materiality local vendors in Angola, Saudi Arabia, maintaining long-standing relations with
Assessment highlighted the attention of Nigeria and Turkey. its suppliers. The process of Vendor
the suppliers to issues of development of 89 suppliers surveyed, as part of the
project of participation in the OECD
Management makes it possible to assess
personnel and protection of their safety, the reliability of suppliers in terms of
security of assets and business ethics. Due Diligence Guidance for Responsible technical, financial and organisational
Supply Chains of Minerals from capability.
Conflict-Affected and High-Risk Areas.
Interviews with Italian vendors Organisation of a Due Diligence day.
can be read on pages 50-51. Engagement of local vendors
to participate and support community
initiatives in Kazakhstan, Peru and
Colombia.
19 suppliers and business partners
involved in Saipems Materiality
Assessment.
Interviews with 6 Italian suppliers of
goods and services.
14 F.C. Zingale, Handle With Care, Nigeria
SAIPEM SUSTAINABILITY 2015 15
HOW SAIPEM
CREATES
SHARED VALUE
Providing the most advanced Generating profit through Simplifying the supply logistic.
solutions to clients. a competent and committed Reducing counterparty risk and
workforce. operational costs.
Strengthening employee
attraction and retention.
Value for
Society
Enabling the industry to meet Creating job opportunities Supporting the local market.
16
the global energy demand. and increasing skills for local Strengthening entrepreneurial
development. capabilities.
SAIPEM SUSTAINABILITY 2015 17
HCD 1.61
EI 1.74
(the increased lifetime earning expectancy1 associated into the economy by Saipem through local spending, local
with training), and the induced effect (calculated as the wages and taxes paid.
overall effect in the country of the increased earning In a country like Canada, each Canadian dollar introduced
expectancies, household consumption and taxes). into the economy by Saipem has a total multiplier effect
The results (see map above) show that in a country like of 2.02, meaning that it has generated an additional
Angola, each dollar invested by Saipem to train local 1.02 Canadian dollars (2011-2014). For Australia and
employees has generated an additional 1.80 dollars in the France, the multiplier effect is between 2.10 and 1.90,
Angolan economy. Similar multiplier effects have been respectively. Countries with less structured industrial
obtained for France, Brazil and Saudi Arabia, while for a contexts show a more reduced but nevertheless
country like Indonesia each dollar invested has generated significant impact, with multipliers of 1.20 for Saudi
an additional 13.70 dollars in the local economy, resulting Arabia, 1.33 for Kazakhstan and 1.32 for Angola.
in a total impact of 15 million USD spread over 5 years. Strengthening the competitive context in key regions
Similarly, the value generated in the local economy where Saipem operates is a way of contributing to
by Saipems activities and operations is calculated by the countrys growth, as well as to the Companys
considering the multiplier effect of each dollar introduced effectiveness and productivity.
18
SAIPEM SUSTAINABILITY 2015 19
initiatives in action
I
Area of intervention Actions
Rig Tutoring: appoint experienced Saipem Rig Toolpushers to monitor rig activities and
I Reduce
Expected/achieved targets
number of accidents by delivering
I Status
tutor the drilling crews with the purpose of correcting hazardous conditions see page 87.
on-the-job training to rig crew.
and unsafe acts that may lead to accidents (pilot programme in place in Venezuela).
Local cultural training for expatriate personnel: training involved 36 expatriate Help improve communication within the workforce
personnel from Italy, Peru and Colombia working in Venezuela, with the purpose of in multi-cultural environments, creating trust
explaining the countrys culture, customs and practices, and how see page 87. and cooperation and facilitating the transmission of
to communicate with local personnel. procedures/documents to local drilling personnel.
HSE real time operations: installation of video cameras on 2 drilling rigs connected to the Real-time monitoring of rig activities and remote
Petrex Venezuela Base, allowing real-time monitoring of critical rig operations. intervention in the event of observed unsafe
see page 87. operations. Images can be used in the event of
accident investigations.
Job Safety Analysis (JSA) for routine operations: revision of JSA for routine operations Facilitate the steps of explaining activities
and use of pictures to facilitate the explanation of critical routine tasks to rig during the tool box talks.
see page 87.
crew.
Take care of your colleague: 5 training sessions organised in Venezuela Improve team work and communication skills
see page 87.
involving a total of 60 people working on 2 drilling rigs. of rig crew members.
Daily Tour and Five Stars intervention: random visit on site (every 2 hours) performed Immediate intervention in the event of unsafe acts or
by Rig Supervisors and HSE personnel to assess the working areas, ensuring they are conditions, identification of improvement areas
free of unsafe conditions and have a good level of housekeeping, with application and increase in the number of SHOC cards compiled.
see page 87.
of the Five Star intervention method to STOP unsafe acts/conditions.
Safety Leaders championship: Safety Leadership sixth-month contest organised Active involvement of workforce and reward
on board the Saipem 12000 involving crew personnel with the motto see page 32.
for proactiveness.
each of us must become a safety leader.
Leadership & communication workshop for drilling team leaders: 26 rig team leaders Improve communication skills and build a commitment
and Rig Senior Managers from Saipem 12000 and Scarabeo 9 involved see page 31.
to action by integrating the new skills in the
in a two-day workshop. operational environment.
Human factors training course for area managers: 28 Drilling Managers from various New Oil & Gas standards presented
departments participated in a course focused on the importance of human factors and to management.
non-technical skills in drilling crew management and how these elements
see page 30.
impact operational safety.
Know you barriers campaign: definition of the offshore drilling units barrier concept (i.e. Ensure rig personnel and rig management are
barriers preventing major accidents and controlling the escalation of incidents) to see page 30.
aware of and made responsible for the barriers
identify a method for barrier management and share it with relevant personnel. they are managing.
Tool Box Wrap Up: introduction of a dedicated time organised on a weekly/daily basis Involvement of the workforce to make a day-by-day
by supervisors with the participation of the workforce to discuss and focus on the lessons contribution to safety discussions.
learned and main events of the week (e.g. incidents, near misses, safety observations).
Top Management HSE inspection: HSE Management Meetings between CEO, COO Fostering an HSE culture and discussing HSE
and Onshore BU top management and Managers and Superintendents at site. project performances; enabling CEO, COO and
Onshore BU top management to receive tangible
feedback on safety from site personnel.
Development of a Model to calculate cost for incidents: to determine the economic Demonstrate that working safely is more effective
benefits of working safely, considering both direct costs (e.g. insurance) and indirect costs in terms of costs than working unsafely.
(e.g. lost time, production delay, extra wages or overtime payments, sick pay, fines, legal
costs, investigation time, loss of business reputation and contracts).
Reinforcing Subcontractor management: development of a more cogent methodology Improve safety alignment and performance
for vendor qualification and bidding phases; development of a safety training package of subcontractors.
specific for vendors to be used during the project execution phase, already validated
at the Karimun Fabrication Yard; development of a communication guideline for endorsing
the best subcontractors and to improve the vendor feedback evaluation.
Use of a 3D model to prevent accidents: a 3-D model has been tested to anticipate Improve HSE management during execution phase,
HSE issues during the project execution phase (construction, fabrication and installation). especially when Saipem is in charge of integrating
This facilitates the organisation of virtual safety walks with views during the construction/ and/or installing equipment or modules supplied
fabrication/installation phase, thereby anticipating the main risks and allowing possible by others.
modifications in the plant to provide safer working conditions.
Highlight hazards of routine activities on board: reinforcing requirements for vessel Enhance synergies among teams and capitalise
management to coordinate and carefully plan routine tasks. on experiences.
Improve learning from mistakes: production of animations on significant high-potential Capitalising on experience enables learning from
incidents (development of 16 high-impact safety movie clips for employees and mistakes and leads to continuous improvement.
contractors, as part of the Life Saving Rules campaign), distribution of safety bulletins
and discussion (i.e. weekly meetings, ad-hoc meetings, etc.).
Competencies Assurance System: developed for Floaters personnel in order to ensure Enhance technical competence of the workforce
that competence evaluation is done through a structured and transparent system (revision and develop appropriate training.
of hiring criteria), identifying potential gaps and planning the relevant training accordingly.
Already used on the Cidade de Vitoria project and on the Gimboa project.
Legend
reinforcing leadership and management commitment to safety manage subcontractors in order to guarantee their full compliance with Saipem
safety standards
competent, reliable and motivated workforce new approach to problems related to routine risks
Renewed commitment The initiative was designed to revitalise awareness and
application of the IOGP LSR, tailoring it more to Saipems
to the Life Saving Rules specific context, and focusing on what each individual
can do to ensure that the rules are known, understood
As an outcome of We Want Zero, at the end of 2015 and internalised within the Company.
senior management presented a campaign aimed Saipem has developed its own updated materials
at reinforcing the application within Saipem of the (interactive movie, pocket booklet & card, printable
International Association of Oil & Gas Producers (IOGP) poster, digital presentation materials, Tool Box Talk and
Life Saving Rules (LSR). The LSR are a set of non- supporting safety alerts, etc.) to reflect the operational
negotiable industry standard rules relating to the safe realities of the Companys various working environments.
operation of a number of activities common to the These have been translated into several languages
energy sector. Saipem has already been and currently and are accessible through a dedicated web page to
is complying with the scope of the rules as set out by allow individual personal learning or as part of a local
the IOGP, as they had already been an integral part of campaign or initiative for the wider workforce.
the Companys workplace policies and procedures for The campaign was launched by Saipem CEO Stefano
many years. But senior management has considered it Cao and, based on the Companys risk profile, three
worthwhile to recognise once again the importance of core rules, namely, Safe Working at Height (already
having the same rules across the industry as a powerful started), Confined Spaces and Moving & Energised
way of ensuring a consistent approach to controlling Equipment, were chosen as the main focus. Initiatives
high-risk activities, and as an additional incentive to will be developed locally in the operating areas based
engage subcontractors towards achieving the Zero on the local operational reality and the LSR tools will be
objective. customised as the local teams deem appropriate.
LHS FOUNDATION
In 2010, Saipem founded the LHS experience has, over the years, communication
Foundation, which took its name helped nurture a desire to make campaigns
from the Leadership in Health these values available outside the and sports
and Safety (LiHS) programme boundaries of the Company itself. and cultural
developed and implemented The LHS Foundation is a non-profit initiatives
successfully at Saipem beginning organisation whose mission is targeted at
in 2007. The aim of LiHS is to to contribute, via research and businesses
stimulate, at every level in the continuous innovation, to the and freelance workers, students
Company, a leadership mentality dissemination of a culture of and, more generally, the entire
oriented towards the protection of health and safety. It does this by community.
basic Company values: health and developing
safety in the workplace. training Further information on the LHS Foundation
20 Saipems extremely positive programmes, can be found at: www.fondlhs.org.
SAIPEM SUSTAINABILITY 2015 21
Integrity-based business
Integrity and transparency are the principles that inspire Saipem in defining
its Corporate Governance system, a basic element of the Companys business model.
Saipem is committed to maintaining and reinforcing the Corporate Governance System,
in line with the standards of international best practices and well-suited to the
complexity of the Companys structure.
The Governance system, along with the Companys Governance Committee has, among it its tasks, also the
strategy, is aimed at maintaining a relationship of trust assessment of the appropriateness of the commitment
between Saipem and its stakeholders and contributing to the issues of corporate social responsibility and its
to the achievement of business results, creating external reporting.
sustainable value in the long run. The Sustainability Committee is the body ultimately
Saipems organisational structure is characterised by responsible for the definition of the sustainability
the presence of a Board of Directors1 (BoD), a pivotal strategy, its integration with the objectives of the
body in the governance system, to which management business and the assessment of the achievement
of the Company is exclusively entrusted. Supervisory of expected results. The body, chaired by the Chief
functions are the responsibility of the Board of Statutory Executive Officer and composed of the Directors of the
Auditors, whereas external auditors are in charge Corporate Functions and Business Units, met 3 times
of the legal auditing of accounts. 3 committees with in 2015 to discuss the previous years results, to approve
advisory and consulting functions have been set up the Sustainability Report 2014, to approve the content
within the BoD. These are the Audit and Risk Committee, of the 2015 Sustainability Report and the Sustainability
the Compensation and Nomination Committee and the Plan 2016, resulting from the structured process of
Corporate Governance Committee2, an expression of materiality assessment conducted on both external
the Board and chaired by the Chairman. The Corporate stakeholders and on management and employees.
(1) The Shareholders Meeting manifests the will of the shareholders through resolutions adopted in compliance with the law and the Companys
Articles of Association. The current Board was appointed by the Shareholders Meeting on April 30, 2015 for a three-year period, its mandate
expiring at the Shareholders Meeting called to approve the Financial Statements at December 31, 2017. The Chairman of the Board of
Directors is a non-executive, independent Director.
(2) Further information regarding the previous positions and qualifications of the individual members of the Board of Directors are available from
their CVs which can be found in the Governance section of the Corporate website and in Saipems Corporate Governance and Shareholding
Structure Report 2015.
Corporate Governance structure
Shareholders Meeting
I
Management and Control Bodies
Board Committees
(a) Independent.
(b) The Compliance Committee includes two external members, one of them appointed as Chairman, and three internal members of the following functions: (1) General Counsel,
Company Affairs and Governance; (2) Human Resources, Organisation and Services for Personnel and (3) Internal Audit.
As of January 21, 2016.
Performance management the activities carried out in the exercise of the delegated
and assessment duties on the Groups activity and on major transactions
carried out by the Company or its subsidiaries, and
At least once every three months, the BoD receives, receives information every six months from the Board
from the Directors with executive powers, a report on Committees. The BoD approves the Strategic Plan which,
alongside specific economic and financial themes,
includes objectives related to the sustainability aspects
TRAINING PROGRAMME of Saipems business.
RMI Monitoring
Guidance &
in Reporting
Given the cross-cutting nature of Risk
sustainability, setting objectives Management Methods
and quantitative/qualitative targets
for management is one of the ways 3
to ensure full consistency between
commitment and performance.
Saipem senior managers are directly involved in order of the Group Risk Assessment, the CEO presented the
to guarantee the comprehensive integration of the Board of Directors with details of the main risks to which
Sustainability objectives with the overall Business Saipem is exposed, as well as indications on the trends in
objectives of the Company. Each year, most of the project based industrial risks.
approximately 400 Senior Managers are assigned
individual objectives specifically regarding sustainability.
The specific objectives defined take into consideration
Integrity and transparency
the managers roles within the organisation and their Directors shall meet the honourability requirements
contribution to reaching Company targets, mainly prescribed by regulations, possess the professional
directed at the maximisation and development of Local expertise and experience to carry out their mandate
Content, effective engagement of stakeholders, and efficiently and effectively, and be able to dedicate
minimisation of the social and environmental impacts sufficient time and resources to their offices.
of activities. In compliance with the Corporate Governance Code,
the BoD carries out a yearly Board Review on the size,
In general terms, all managers are required to promote, composition (also in terms of gender and qualifications)
support and provide adequate resources for the and level of functioning and efficiency of the Board and
implementation of sustainability initiatives and methods its Committees. To this end, it relies on the assistance of
that are material to the specific function, area a specialist external consultant.
of responsibility or business unit.
The Saipem procedure, Transactions involving interests
Risk Management of Directors and Statutory Auditors and transactions
with related parties, aimed at guaranteeing full
The Integrated Risk Management (RMI) function was set transparency, as well as procedural and effective
up in 2013. In line with the policies defined by the Board fairness for transactions with related parties, was
of Directors with regard to the Internal Control and Risk approved by the BoD in 2010 and modified on March
Management System, it supervises the development and 12, 2012.
maintenance of Saipems Integrated Risk Management Saipem provides employees and stakeholders with
System, the aim of which is to identify, analyse, treat and an information channel through which it is possible
monitor risks the occurrence of which could affect the to report any problems related to the internal control
achievement of the Companys objectives. system, financial reporting, corporate administrative
In 2015, the management of industrial risks was liability, fraud or other topics (i.e. violations of the Code
integrated into the RMI function. of Ethics, mobbing, theft, security, etc.).
During 2015, the RMI function carried out its 3rd cycle
of Group Risk Assessment and developed a monitoring
system for the main risks. It also performed a Risk
Assessment of 21 strategically relevant subsidiaries. Further information is available online
On February 24, 2016, and on the basis of the results in the Corporate Governance section.
Since Saipem SpA has its headquarter in Italy, both the
Responsible Leadership Company and its personnel are subject to Italian law and,
Saipem is facing new business challenges that require in particular, to the provisions of Legislative Decree No.
it to revamp its professional identity, starting from the 231/2001, which regulates the administrative liability of
principles and values that drive the organisation, and to legal entities deriving from offences, such as internal
develop new models of leadership. and international bribery, committed by their directors,
employees or associates, in Italy or abroad, in the
interest or to the advantage of said legal entities.
As a multinational organisation doing business in 70
The world is changing and leadership countries and jurisdictions around the world, Saipem
is not an exception. Leadership is not and its personnel are also subject to the laws of many
other countries, including any laws ratifying international
static; it is in continuous evolution. conventions, and prohibiting the corruption of Public
The definition of leadership is changing3. Officials and private parties.
These include:
the OECD Convention on Combating Bribery of Foreign
This is the reason that inspired Saipem to develop its Officials in International Business Transactions;
own Leadership Model, a new reference model that all the United Nations Convention Against Corruption;
Saipem people should adopt in line with the new Company the Foreign Corrupt Practices Act (FCPA) issued in the
strategy and identity, where the term leadership means United States;
more than just a tool for managers, as it also concerns the UK Bribery Act issued in the United Kingdom.
the behaviour expected from each employee, regardless
of his or her role. In accordance with the principle of zero tolerance for
The model is based on the following pillars: corruption expressed in the Code of Ethics, Saipem
knowledge, vision, integrity, decision, people and decided to face other risks head-on which may be
communication. encountered by the Company in its business activities by
It was designed using an integrated top-down and implementing a detailed system of rules and controls to
bottom-up approach: the top-down approach was prevent corruption-related crimes (the Anti-Corruption
realised through an interactive workshop with top Compliance Programme), which is characterised by its
management at the end of 2014 to define the models dynamism and constant attention to evolving national and
fundamental principles and values. international legislation and best practices.
The bottom-up approach was developed throughout
2015 thanks to 11 workshops involving Saipem personnel The Compliance Programme was introduced in
from Italy and abroad from different group companies, accordance with applicable Anti-Corruption provisions
taking various operational processes into consideration. in force and with the international conventions listed
The first semester of 2016 will see the integration of above. As part of the continuous improvement of the
the leadership behaviours identified within the main Anti-Corruption Compliance Programme, the BoD of
processes of human resources management, such as Saipem SpA approved the update of its Anti-Corruption
recruitment, training, development and performance Management System Guideline in June 2015, further
evaluation. reinforcing a number of internal rules, among which the
main improvements can be summarised as follows:
Fighting Corruption specific rules which require Saipem Personnel to avoid
and report any situations that can lead to or cause a
One of the key factors of Saipems reputation is its ability conflict of interest between their personal and family
to conduct business with loyalty, fairness, transparency, financial dealings and the tasks they carry out in the
honesty and integrity in compliance with both domestic organisational structure or body to which they belong;
and foreign laws, regulations, similar mandatory more stringent criteria regarding gifts, payments or
requirements and international standards and guidelines any other financial benefits, from and to Company
that apply to its business. personnel, to guarantee that they do not secure an
improper advantage;
specific rules were introduced concerning
Saipem rejects Anti-Corruption activities to be implemented in relation
to local community initiatives;
any form of corruption.
introduction of a wider definition of Covered Business
24 (3) Source White R. P., Hodgson P., Crainer S., The future of leadership: rising the corporate rapids into the 21st Century.
SAIPEM SUSTAINABILITY 2015 25
Partners4 and more specific rules with respect to the issued, its updating and development will continue with
due diligence process to be carried out before signing the design phase (where necessary) and the delivery
an agreement with counterparties and the clauses to of training initiatives to offer a vast, uniform and
be included in the agreement; systematic training catalogue (including both classroom
with reference to the recruitment process, specific and e-learning courses).
pre-hiring checks were introduced in accordance with
and as permitted by applicable local laws; Anti-Corruption themes play a central role within the
with reference to acquisitions and disposals, a framework of the new matrix.
broader due diligence process was introduced with The Company organises institutional training meetings
reference also to the activities performed by the dubbed Welcome to Saipem, for newly-recruited
target Company; graduates, with the goal of providing a general overview
introduction of a specific reference to relations of the Saipem Group and its values and mission.
between Saipem personnel and Public Officials or It also organises courses on the Legal, contractual
Relevant Private Entities5. In this respect, a specific and insurance aspects of projects for employees
Standard Corporate Procedure was issued in August with a more advanced level of seniority and expertise,
2015; especially for personnel working in the Procurement and
with reference to Anti-Corruption training, a specific Project Management areas, providing tools to assess
rule has been introduced clarifying mandatory training the impact of national and international regulations on
programmes as a contractual obligation for Saipem contractual provisions and the precautions required
personnel. to mitigate any associated risks. In addition, specific
training sessions are organised for At-Risk Personnel
(employees who have contacts with public officials or
Business ethics who may enter into contracts with third parties on
training programmes Saipems behalf) working in the countries where Saipem
operates. Moreover, a specific e-learning module on the
Saipem personnel are regularly informed of and Internal Control System over Corporate Reporting was
trained in the Companys Compliance and Governance delivered to Saipem personnel in Italy and abroad.
systems, as well as in the importance of compliance with In the framework of the Organisation Management and
legislation and related procedures, so that they clearly Control (OM&C) model and Anti-Corruption training,
understand the different crimes, risks and relevant Saipem organised numerous training sessions in 2015:
personal and corporate responsibilities, and the actions
to implement in order to avoid being penalised for
violating them. 19
NUMBER OF COUNTRIES WHERE TRAINING
Given the criticality of these issues, a training matrix on
SESSIONS WERE HELD
Compliance and Governance topics has been defined.
In particular, it takes legal requirements and Company
standards into consideration, as well as the jobs and
responsibilities of the resources to whom the training is
1,929
addressed. EMPLOYEES TRAINED
(4) Covered Business Partners include those partners who act not only on behalf of Saipem but also in its interest or is likely to have Relevant
Contact with a Public Official during the course of its work for or on behalf of Saipem (for example, joint ventures, intermediaries, consultants,
distributors, vendors at high risk, agents, franchisees, brokers, etc.).
(5) Relevant Private Entities are companies, consortia, foundations, associations and other private entities, even entities without legal personality
(including credit rating agencies) performing professional, institutional or business activities, whose performance or non-performance may
produce an advantage for Saipem or which may be of interest to Saipem.
Rights topics and, whenever possible, to modify, adapt or personnel and for the people employed by vendors and
change a projects solutions to eliminate or minimise any employment agencies.
negative impacts. The vendor qualification system includes requirements
for complying with social and labour rights, with a special
Security practices focus on child and forced labour, freedom of association
With regard to security management, Saipem has been and the right to collective bargaining, as well as on
asking its external security companies since 2010 to remuneration, working hours, discrimination, disciplinary
include clauses that guarantee the respect for Human procedures, and health and safety issues.
Rights in its contracts. Any non-compliance is due grounds
for cancellation of the contract.
367
Every security contract must include QUALIFICATION QUESTIONNAIRES ON WORKERS
RIGHTS ANALYSED
clauses guaranteeing the respect
In addition to the above, at the end of 2015, an updated
for Human Rights. internal procedure concerning the local employment
In addition to this, for all new operational projects in agency management was issued. The aim was to
which Saipem is responsible for Security, a Security Risk reinforce the monitoring of ILO principles of the
Assessment of the country in question is made prior agencies, both during the recruiting phases and after
to any offers being tendered. If a decision is made to the signing of the contract with the employee, for
proceed with the offer, a Security Project Execution Plan example in terms of insurance coverage, timely payment,
is also prepared. The Security risk related to the operating compliance with all legal obligations and work permit
activities and context is analysed, including any issues of validity.
potential Human Rights violations.
Reporting alleged Human Rights violations
Labour standards Since 2001, Saipem has instituted a procedure for
Saipem is committed to progressively improving its reporting grievances regarding the System for Internal
capacity to monitor compliance with International Labour Control and Risk Management and other Issues in Violation
Organisation (ILO) conventions and encouraging third of the Code of Ethics (that formally include the protection
parties to comply with them. of Human Rights). The grievance mechanism is accessible
This is valid both for the management of its own to workers and third parties.
In addition to this, Saipem is working to develop an and/or gold (known as 3TGs or Conflict Minerals)
internal procedure to better define specific grievance and if their trade has directly or indirectly financed
mechanisms for collecting and managing complaints armed groups operating in the Democratic Republic of
and claims from local communities for use by the whole Congo (DRC) or adjoining countries (Angola, Rwanda,
group, in addition to a number of companies that already Burundi, South Sudan, Congo, Uganda, Zambia, Republic
have their own systems in place. of Tanzania and the Central African Republic).
Saipem is making progress in its effort to increase
A sustainable supply chain awareness and further sensitise its suppliers with
regard to the issues of conflict minerals.
Following up on the project started in 2011, Saipem In 2015, Saipem implemented the following actions:
organised its fifth audit campaign in 2015 at selected the Company listed products and materials containing
vendor operating sites to assess compliance with social 3TGs necessary for business activities;
responsibility throughout the supply chain. it surveyed the vendors supplying these products;
The audits aim to collect information on the performance it issued a specific procedure, with the aim of
of suppliers on major social responsibility issues such standardising the internal process to identify suppliers
as child and forced labour, freedom of association and involved in the annual survey, to define due diligence
the right to collective bargaining, remuneration, working activities, and to obtain more manageable and
hours, discrimination and disciplinary practices, and measurable results.
health and safety. Surveys conducted in 2015 on 89 suppliers have shown
As a further objective, the campaign also verifies vendor that 44 suppliers were conflict free and 45 suppliers
compliance with Saipems principles. needed to be involved in follow-up activities in order to
The results of the visits are condensed into audit reports further analyse their supply chains.
that are submitted to the Sustainability Committee.
As in previous campaigns, improvement actions are
proposed where appropriate.
In 2015, the main objectives were to:
89
SUPPLIERS INVOLVED IN THE CONFLICT
Follow-up on the improvement actions identified
MINERALS SURVEY
in previous audits to check their effective
implementation.
Perform two new assessment visits to China and India,
as they are considered significant business countries.
Focus on countries not covered by previous
campaigns. Due to Saipems current operations,
Bahrain and Saudi Arabia were selected.
13
AUDITS ON VENDORS IN RELATION TO LABOUR
RIGHTS CARRIED OUT South
Central Africa Sudan
Republic
Although the audits were performed in critical contexts,
the overall results showed no major problems in terms of Congo Uganda
Republic
child or forced labour and improvements were identified Democratic
Rwanda
in employee management both in terms of health and Republic of the
Congo (DRC)
safety and working hours. Tanzania
Burundi
Saipem adopts and implements international principles specific objectives. The Saipem HSE Management
and best practices in order to safeguard integrity in System combines Health, Safety and Environment
operations. into a single comprehensive and harmonised overall
Within the framework defined by the company policy, management system. The company is committed
The Integrity in our Operations, roles, responsibilities to certifying the effectiveness and reliability of its
and processes that entail the integrity of Saipems management systems, as proven by the high percentage
operations are defined in company procedures that of group companies covered by certification: in fact most
specify how to carry out processes from planning, to
execution and control.
The three pillars of Saipems approach to asset integrity
are: ASSET INTEGRITY
employee expertise;
maintenance process; Asset integrity is related to preventing major
operational capabilities. incidents; it is an outcome of good design,
Currently Saipem is designing a set of Key Performance construction and operating practices and it is
Indicators in order to monitor the effectiveness of achieved when facilities are structurally and
the three pillars for each asset of its drilling fleet, mechanically sound and perform the processes and
introducing threshold acceptability limits for each produce the products for which they were designed.
element and setting annual targets for improvement. The emphasis is on preventing the unplanned release
of hydrocarbons that may, either directly or via
The safeguarding of health, safety and the environment escalation, result in a major incident. Structural
is carried out in accordance with the principles of failure or marine events may also be initial causes
precaution, prevention, protection and continuous that escalate to becoming a major incident.
improvement, endowing all levels of the Company with [Source IOGP Report Asset Integrity the key to
responsibilities for HSE issues, and the definition of managing major incident risks]
CULTURE OF INTEGRITY: SAIPEMS COMMITMENTS
Implementation of international defined objectives, analysing approach in mitigating risks, as an
principles and best practices. variances, identifying and carrying integral part of management and
Acquisition of certificates that out any corrective actions. business activities.
attest conformity with national Involvement of employees and Promotion of behaviours that
and international standards. development of training initiatives are in line with its standards of
Clear definition of roles, aimed at promoting cautious and integrity in operations along the
responsibilities and procedures preventive behaviours. supply chain.
to carry out planning, execution Risk prevention,
Further information can be found in
and control of processes. through a
The Integrity in our Operations.
Monitoring the achievement of proactive
of the Saipem Groups operating companies (excluding Saipem recognises the managements commitment and
immaterial subsidiaries and subsidiaries that do not have leadership as primary drivers for a proper and effective
control or do not manage operating projects) are OHSAS approach to future actions, as they generate employee
18001, ISO 14001 and ISO 9001 certified. In addition, involvement with shared responsibility based on open
some companies are working to extend their certification and honest communication.
or for new certifications. To accomplish this, programmes have been designed to
The effectiveness of the systems in place is involve Company managers in the process; the first one
demonstrated by the substantial improvements Saipem was a one-day informative/formative workshop held in
has seen in Total Recordable Incident Frequency Rates March 2015. The event involved 28 Drilling operational
(TRIFR) in the last years. department Senior Managers and administrative staff
management. What human factors are, how human
The year 2015 has seen the pursuit of the Barrier factors elements influence performance, and how
Management Programme, initially launched on human factors can be integrated in the organisational
Scarabeo 5 and 8, both operating in Norway, and aimed processes were presented during the training session.
at training, informing and further empowering staff on The next steps will see a more operative implementation
process safety, safety cases and barrier management. of human factors management in drilling operational
The barriers (technical, procedural and organisational) activities through the development of training packages
are identified as any actions that limit the occurrence and workshops, and in accordance with IOGP guidelines.
of a top event, an adverse event related to major
hazards in operating activities. At the end of 2015, 96%
of personnel onboard Scarabeo 8 and 95% onboard
Human Factors Engineering
Scarabeo 5 underwent training. Human Factors Engineering (HFE) focuses on the
application of human factors knowledge for the design
Human factors: the new and construction of socio-technical systems, to ensure
that systems optimise human contributions to production
frontier for the process and minimise the potential for design-induced risks to
safety management health, personnel or process safety.
Many human factors engineering issues can be
The human factors discipline is concerned with controlled by ensuring proper compliance with the
understanding the interactions of individuals with each technical standards already in place. However, there
other and with other elements of complex systems are cases where what is specified in the standards
(facilities, equipment and systems), and how these does not necessarily cover design features necessary
interactions could contribute or not to ensuring a for supporting efficient, reliable and safe human
safe workplace. Significant improvement in safety performance.
performance could be achieved by taking better and Saipem has developed specific processes and
more explicit account of the way people interact methodologies to control human factors engineering
with every aspect of the workplace while also taking related risks, as in the three modules described below:
the personnel culture and local environment into HFE in projects, whose purpose is to ensure that
consideration. Dealing with human factors means systems are designed to optimise human contributions
applying a mix of scientific principles, lessons learned to production and minimises potential design-induced
from previous incidents and operational experience risks to health, personnel or process safety or
to optimise the well-being of people working on a wide environmental performance through effectively
range of company aspects. integrating HFE principles in project development,
Conscious of the important contribution that the proper from the bidding stage and after contract award.
management of human factors could make, Saipem HFE during project development (Construction/
has started to integrate human factors issues into its Fabrication/Installation), aimed at ensuring that
30 management systems. human factors are taken into consideration during
SAIPEM SUSTAINABILITY 2015 31
the definition of construction methods and erection The interaction of human factors
sequences to achieve a design that is safer to
construct. The core of the process involves HSE experts
People
participating during the Constructability Reviews and Individual factors
the early identification of Construction Hazards. Knowledge, expectations, attention,
goals, health, fatigue, age, culture,
Human Factors General Assessment provides a tool body size, strength, stress, etc.
rewarding good initiatives (operational safety and Emergency preparedness and immediate response is a
operational improvements) performed by personnel, clear imperative for the entire Oil & Gas business, also as
empowering the crew to intervene and stop unsafe acts a consequence of past tragic events. All the companies
and stimulating participation in HSE training courses. have been required to demonstrate their full capability and
The Championship, which lasted six months, involved all capacity to responding to any kind of emergency whether
departments working on the vessel, divided into 22 safety they encompass medical, environmental, asset emergency
teams, each one captained by a safety leader (appointed or natural disasters such as flooding, earthquake, etc.
by rotation on a two-week basis) responsible for motivating
their team to actively participate in the Championship,
using the safety tools available and spreading the safety
As a consequence of its renovated
orientation within the team. The safety teams competed to commitment to the total integrity of its
reach the highest championship score, calculated based operations, in 2015 Saipem developed
on a series of indicators (On The job Assessments and a new emergency response model.
Safety Hazard Observation Cards Analysis completed and
participation in HSE Training Courses).
During the championship, 3 training courses to improve
the communication and leadership skills of crew, The model clarified and reinforced the roles and
personnel and the working team and on operational responsibilities of all the functions involved in operations,
safety were organised. from corporate to operating companies and projects,
with a special focus on their duties in analysing potential
Emergency preparedness risks and threats and the processes to respond to
them in a coordinated manner. Local crisis units and
Managing asset integrity means also planning and a Corporate Crisis Committee, represented by the
implementing robust emergency response barriers. Companys top management, was set up. In addition
to the revised crisis management model, Saipem has Starting from the identification of the main situations in
created a fully digital and best in class emergency which a spill of pollutants may occur, specific procedures
and crisis room located in the Milan main offices, with define systems to control and avoid any release.
satellite and digital communications, video conference All personnel involved in spill response are duly trained
facilities and several phone land lines. in emergency drills, carried-out regularly as part of the
A new web based portal was also realised, named annual drill plans, also in collaboration with clients and
Pangea, to collect and monitor all the documentation other entities involved.
of the companies, vessels and projects related to the The drill scenarios taken into account are of various
Emergency and Crisis process including emergency types in order to cover all possible kinds of spills.
response plans, medical response plans and other Concerning specifically offshore activities, in 2015,
information necessary to ensure a prompt response in Saipem vessels and offshore drilling rigs started the
case of an escalation of an emergency situation. process of mapping oil spill critical areas/equipment
in order to identify and document sources of potential
Reinforcing pollution, assess the risk of spills and define mitigation
measures.
oil spill prevention This is an essential step in the development of a
and preparedness response strategy, but also a crucial tool for assisting
responders in case of an incident.
Maintaining the integrity of company processes and
assets also means preventing and minimising spills. Total spills
In line with its HSE Policy, Saipem adopted a pollution
No. m3
prevention approach as a guiding principle for all of
150 150
its activities, using its best efforts to prevent and
take all reasonable precautions to avoid pollution or
120 120
contamination of the land, air or water. Given the results
of risk analysis on Saipem operations, spill prevention
90 90
and preparedness are a top priority for Saipem.
During the course of an operating project, every 60 60
effort shall be made to ensure that all operations
are conducted in order to avoid the risk of a spill 30 30
situation or, whenever an incident occurs, to implement
measures and actions to prevent its escalation. 0
0
Among the three main phases when facing a spill 2013 2014 2015
contingency, which are prevention, preparedness and Volume of spills
response, the first phase is clearly the most important In 2015, spill number (38) and spill volume decreased compared to 2014 (50) and 2013 (77).
All incidents are reported and investigated appropriately in order to establish the causes
area to be taken into account. and identify corrective actions to prevent such events from happening in the future.
consumption and emissions. In terms of replicability and
reliability, the main interventions were as follows:
Saipem promotes different approaches Power Load Management - to manage loads when
multiple generators are used.
that limit consumption and subsequent Heat Recovery - to recover heat from flue gas or other
emissions into the atmosphere through process fluids that would otherwise be dispersed.
the use of proven technologies and Variable Frequency Drives (VFD) - to modulate
proposals for innovative solutions. consumption of electric motors based on the actual
need.
Through energy assessment studies conducted on Company Standby power reduction - to avoid hidden residual
assets, the main energy flows are identified starting from consumption on equipment not on line.
the source (local self-generation or electricity network) up to Optimisation and replacement of lighting systems with
end users. Technological solutions and operations can then more efficient technologies.
be defined in order to reduce consumption and increase the Elimination of leaks in the lines (example: compressed
overall efficiency of the asset. air).
70 0.4 70 140
0 0,0 0
2013 2014 2015 2013 2014 2015
Scope 1 emission Scope 2 emission Total energy consumption
In 2015, the total value of Saipem Scope 1 emission is 1,504 kt CO2 eq (1,420 in 2014 and In 2015, Saipem consumed 514 ktoe of energy (564 in 2014 and 622.6 in 2013). Energy
1,539 in 2013). It should be noted that the methodology to calculate direct GHG emissions consuption by worked man-hours increased slightly in 2015 (2.19) compared to 2014 (2.12)
was modified in 2015. Regarding Scope 2 emission the total value is 43 kt CO2 eq. Further and to 2013 (2.08). Further details on this performance can be found in the Sustainability
details and a description can be found in the Sustainability Statements of the Annual Report Statements of the Annual Report 2015.
2015.
Saipem also has an engineering unit dedicated to Finally, Saipem has solid experience in the technologies
developing innovative solutions to reduce the electricity that make up the chain of CO2 Management, from
needs of existing or new industrial plants, thereby capture, transport and storage.
making the process more sustainable in terms of It has developed projects and case studies in CO2
resource consumption. The development of technologies segregation through technical Acid Gas Injection (AGI),
such as ORC (Organic Rankine Cycle) and Mini-Hydro are or Enhanced Oil Recovery (EOR).
examples of what has been achieved by the Company,
as well as developments for introducing the use of
renewable resources for the production of process heat
or as stand-alone plants.
W. Z. Tang, Castorone, Singapore
36
application, or conceived directly in the field as a adoption of new drilling techniques for
result of a problem solving approach. ultra-deepwater operations;
SAIPEM SUSTAINABILITY 2015 37
innovative rigs for harsh/arctic operations; high pressure and high temperature applications.
continuous development of advanced solutions in the Saipem Welding System (SWS): an automatic welding
flagship urea synthesis process technology, which machine to optimise sealine installation.
greatly contributed to improving the success in selling
licenses and plants on an EPC basis; Offshore technology
worldwide recognised know-how and technological Subsea field developments: development of skills, high
capability in very complex technologies such as LNG technological leverage and strong contents in subsea
and gasification or hydrotreatment of heavy oils. processing and subsea remote operations, especially
for subsea water treatment and injection in subsea
Saipem innovation showcase gas/liquid separation, liquid/liquid separation, repair
and connection systems, and other subsea engineered
A list of the latest and most significant innovations by systems.
area of application is provided below. FLNG business: qualification of a new tandem offshore
system that uses cryogenic floating hoses developed
Technology for the SURF market in partnership with Trelleborg to increase LNG
Single independent riser technology: designed offloading operation up-time and safety.
to improve fatigue behaviour and to extend the
application range far beyond 3,000 m of water depth. New remote intervention technologies
Heat traced pipe-in-pipe for rigid J-Lay: extends Remote operation and intervention technologies are
the application of the most efficient active heating key to the success of subsea installation and in the life
technology to larger diameter risers and flowlines, of field subsea markets.
for even longer tie-back lines. Saipem, through its Sonsub business line, has just
Fusion bonded joint technique: enables the installation developed and manufactured the first prototype of the
of plastic-lined pipes for highly corrosive fluids, instead Innovator 2.0, the new generation, high power, work
of more expensive clad pipes and is an example class ROV (Remote Operated Vehicles).
of technology designed to reduce costs, an aspect This is a vehicle with very high reliability (certified by DNV
of paramount importance especially in the current low and Norsok), rated for a power of 200 hp in 4,000 metres
oil price scenario. of water depth, high bollard pull, high payload and with
advanced navigation and extended survey capabilities.
Materials technology Following the success of one of the most challenging
Internal plasma welding technology for carbon steel subsea interventions ever carried out, the oil recovery
and clad sealines, successfully used on projects from the Prestige wreck, OSRL (Oil Spill Response Ltd, a
in Asia, the Middle East and the Caspian area to consortium comprising most of the major oil companies)
increase productivity and achieve higher quality assigned Saipem with a project to conceptualise,
at lower costs. New and even faster welding and design, test and fabricate a novel system to transport
field joint coating techniques, exotic and composite and install a hard-cap on a subsea well in blow-out, in
materials for pipes, spools and ancillaries are under less than 500 m of water depth, a range considered
development, to fight corrosion and fatigue and for critical. The system, now under construction, should
indeed allow installation operations to keep a distance
of at least 500 m from the spill, minimising risks for the
Collaboration with intervention fleet and ensuring response readiness.
Other activities
Moss ECO solutions - Moss Maritime, an engineering
company fully owned by Saipem, has developed the new
Moss ECO line of green technologies for application
on drilling semisubmersible rigs, drill ships, platform
supply vessels and anchor handling tugs. These solutions
share the common goal of maximising energy saving and
Multipurpose monohull dynamically positioned crane and pipelay minimising the environmental impact during offshore
(J-lay) vessel utilised for the development of hydrocarbon fields in drilling operations.
deep waters, equipped with cutting-edge class 3 DP and pipeline
fabrication systems. The FDS 2 has a vertical J-lay tower with New technologies for energy recovery in onshore plants
a holding capacity of 2,000 tonnes capable of laying quad joint - Onshore plants, like oil refineries, petrochemical units,
sealines of up to 36 in diameter and also possesses the capability and oil extraction plants, typically use energy derived from
38 to lay pipes in S mode. fossil fuels, either produced on site by fuel combustion or
SAIPEM SUSTAINABILITY 2015 39
3,589 27.2%
50% skills
40 (*) Figures as at February 29, 2016.
SAIPEM SUSTAINABILITY 2015 41
A new strategy was developed using the lessons learned
in the previous roll-out experience, Vessel Management
Teams (VMT) and their first line supervisors will be
involved first-hand by personally building the detailed A real cultural change takes a long
planning of the five LiHS Programme Phases and time, during which a relentless effort
delivering the message themselves. will be made by the Safety Leaders
For this reason the standard one and a half day LiHS
workshop for Managers was customised by creating a to positively influence the style
full second day in which the VMTs have the chance to of all crew members.
practice cascading the LiHS message using the various
tools available. VMTs are called to deliver their personal
speech and commit to concrete actions to improve the
safety culture onboard.
An innovative engaging LiHS cascading is a An interactive and engaging The Leading Behaviours A workshop that aims to
workshop experience structured event designed to workshop for operational strategy focuses on five encourage workers to adopt
designed for all management help managers demonstrate personnel (supervisors simple and transferable positive health choices,
levels. a visible commitment to the and workers) focused on non-negotiable behaviours, focusing specifically on
LiHS workshops inspire and Companys Safety Vision effective intervention, (Start, Recognise, Intervene, lifestyle, malaria and
strengthen awareness and and align the workforce which employs a simple and Challenge, Share) carefully transmitted diseases.
commitment, all the while on the need for change, practical tool to support developed based on the
providing participants with empowering them to communication in safe and collective experiences of an
effective tools to influence stop and intervene when unsafe situations. Operational Management
behaviours and engage them necessary. and HSE Workgroup.
as key sponsors of a solid Its objective is to eliminate
and lasting cultural change. unsafe acts and conditions
and accelerate the cultural
change process.
and contexts. This guideline is part of the stakeholder local communities where Saipem operates.
management tools Saipem is implementing, based on the This is achieved by providing job opportunities,
experiences gained in the past years while also taking supporting local business and entrepreneurship,
guidance documents developed by well recognised transferring know-how and capabilities, cooperating with
international organisations into account. local organisations, institutions and authorities, as well
Dialogue and engagement with local stakeholders are as by contributing to foster the increase in wealth of
the basis for the definition of a community development local communities with local projects and initiatives.
strategy aimed at providing sustainable benefits for the
Saipems presence
project site
Saipem has always applied a comprehensive Local Content has a long tradition in effective local engagement,
approach, aware that this represents a distinctive providing considerable social benefits to the host country
factor. Thanks to a consolidated local presence and a in terms of investments, employment, development of
decentralised and multicultural organisation, the Company subcontractors and other factors.
In 2015, Saipem directly employed 46,346 people, of which 38% with stable work contracts and 99% with full-time contracts. In addition to these
numbers, Saipem employed 4,489 people through employment agencies. There was a total of 5,257 female employees representing 11% of the
workforce. 80% of the Companys 46,346 employees were employed locally, with the highest percentage in the Americas, the Middle East and
Europe. The percentage of local managers (*) (sum of local managers and local senior managers) was 44%, a 1% increase compared to 2014.
This percentage was calculated by excluding data from France and Italy, since inclusion of those countries would have lead to a figure of 75% of
local managers. This methodology used shows, with transparency and without distortion, the constant commitment of Saipem to the promotion of
Local Content, including with regard to management positions.
Saipem works with 32,931 suppliers all over the world, knowing purchased and its complexity. Depending on the criticality of
full well of the strategic value of Local Content and sustainable the supply, Saipem always checks the first-tier suppliers and
development of local economic and business realities. Saipems reserves the right to avail itself of other suppliers whenever
supply chain is very differentiated based on the type of product necessary.
Europe
454
91% of local
l orders
CIS
North Africa 1,399
52 70% of local orders
46% of local orders
Middle East
2,122
68% of local orders
Americas
682 Oceania and Rest of Asia
77% of local orders South Central Africa 338
86% of local orders
1,505
51% of local orders
In 2015, Saipem ordered 8.27 billion in materials and services, of which 1.71 billion were for asset investments, staff costs and other operating
costs not allocated at geographical level. Of the total amount ordered for the operating projects with an identified project operational area, 68%
was supplied by local vendors. The above map shows amounts in millions of euro and the percentage of local orders by each geographic area of
activity.
44
SAIPEM SUSTAINABILITY 2015 45
FIGHTING MALARIA
According to the World Health this interaction. non-immune employees attended
Organisation, the malaria incidence Saipem has implemented the Malaria Awareness Lectures. The
fell 37% globally between 2000 Malaria Control Programme overall Malaria Case Rate (MCR)
and 2015 and death rates fell (MCP) since 2003 to prevent and for 2015 was 0.13, defined as the
60%. However, there are still control the spread of malaria incidence of stewardable malaria
serious obstacles that prevent at its worksites operating in cases per 200,000 exposure-
full access to malaria prevention, high-risk areas in 3 continents: hours. There were 2 fatalities due
diagnostic testing and treatment. South America (Peru and Ecuador), to malaria complications, both
Progress has been uneven, Sub-Saharan Africa (Angola, consisting of nationals of malaria
with some countries carrying a Congo and Nigeria) and South-East endemic countries.
disproportionately high share of Asia (Indonesia). Participation
the global malaria burden. is a mandatory requirement for Stop malaria! is the latest
all Saipem employees working at initiative of Saipems MCP campaign
onshore, drilling or offshore units that was strategically developed to
Fifteen countries, (due to the possible risk of malaria spread awareness and to increase
mainly in Sub-Saharan infection during transit), as well as compliance in the use of protective
for all subcontractors. measures.
Africa, account for The framework of the MCP is built The campaign package contains an
80% of malaria cases around the principles of malaria MCP video and new posters that
and 78% of deaths prevention (primary, secondary focus on the ABCD strategy. The
and tertiary prevention), focusing video provides messages from
globally. on the ABCD plan: A [Awareness], the Saipem Regional Manager
In the Oil & Gas industry, malaria B [Bite prevention], C of Central Africa, as well as
is a major cause of sickness [Chemoprophylaxis], and testimonials from employees who
and an important cause of D [Diagnosis and Treatment]. experienced malaria infections.
death. This involves a complex In 2015, all 48 Saipem worksites
interaction between biological and located in high
environmental variables, and social risk malaria areas
Further details on MCP initiatives in
and behavioural practices. Saipem were included in Angola and Congo are available on
operates across a multitude of the MCP. A total pages 55 and 59, respectively.
countries and cultures that involves of 6,258 (100%)
0.20
0.16
0.13 0.13
0.12
0.09
0.08
0.04
SAIPEMS
WORLD
Italy
Saipem (Societ Azionaria Italiana Perforazioni E
Montaggi) SpA is an Italian company that was founded in
the 1950s. During the 1950s and 1960s, the Company
4,952
TOTAL NUMBER OF EMPLOYEES IN ITALY
acquired expertise in the onshore pipeline sector,
construction of offshore and onshore rigs, and drilling. It
initially operated as a division of Eni, before becoming an
independent company in 1969.
7,088
The Company has been listed on the Milan Stock TOTAL ITALIAN EMPLOYEES
Exchange since 1984. The Saipem Group (of which
Saipem SpA is the parent company) is one of the
world leaders in the Engineering & Construction
and Drilling businesses with a strong orientation
26%
PERCENTAGE OF FEMALE EMPLOYEES
towards Oil & Gas-related activities in remote areas
and deepwaters. The Company identifies itself with
the provision of engineering, procurement, project
management and construction services with distinctive
200,277
capabilities in the design and execution of large-scale TOTAL TRAINING MAN-HOURS DELIVERED
onshore and offshore projects. TO SAIPEMS EMPLOYEES IN ITALY
Saipems activities for Eni, the FEED contract for engineering services on
the SSV (Sviluppo Sostenibile Val dAgri) project at the
The main projects in Italy are as follows: Val dAgri plant has been completed.
for Rete Ferroviaria Italiana SpA (Ferrovie dello
Stato Group), work is under way on the contract for
the detailed engineering, project management and
construction of a 39 km section of a high-speed railway
line and an additional 12 km of interconnections with the
existing conventional railway along the Treviglio-Brescia
section across the Milan, Bergamo and Brescia
provinces, as well as all associated works, such as
power lines, reduction of road interference, road
crossings and environmental mitigation;
the project for the dismantling of the Costa Concordia
in the port of Genoa is in progress in a joint venture
with San Giorgio del Porto;
Investment in training over the past three years has
had a positive impact both on workers and on the Italian
economy. The benefit for workers, calculated in terms of
expectations of higher salaries, has been quantified at 3,716 Italian companies work
5.5 million (over the next 5 years), which should lead to with Saipem and of these
a growth in consumption levels and tax contributions of
about 18 million (again over the next 5 years).
more than 2,200 have collaborated
Furthermore, ongoing training bolsters a culture with the Company for over 5 years.
of health and safety, respect for the environment
and to believe in our abilities and Saipem) of considerable size and and today still is the benchmark
potential for improvement. manufacturing complexities. for other players in the pipeline
Has your client portfolio also Has your cooperation with sector. Ongoing investments and
changed over the years? Saipem influenced your business our ability to diversify by adapting
Initially, we had an exclusively prospects? to the requirements and needs of
Italian client base, mainly in the From the very outset, working with the market have led us over the
Ravenna area. However, the Saipem became a launching pad for last ten years to enter the offshore
experience gained on the projects our company as regards local and business field as well.
realised for Saipem, and the foreign projects. And in over 60 Can you tell us about a particularly
development of our commercial years of collaboration, we can say innovative project that you have
strategies, has allowed us to that we have walked many miles developed in this new business?
compete on the international together. The Castorone, Saipems most
market and to broaden our range recent pipelaying vessel, is equipped
of clients. As of today, we work not Goriziane Group SpA with a firing line designed and
only for Saipem but also for the A talk with Pierluigi Zanin built by us. We also manufactured
main international players in the the Telescopic Linkage, designed
offshore Oil & Gas sector, adapting especially for Saipem, facilitating
on a case by case basis to their variation of the angle of the
specific requirements. stinger, even during navigation.
At the moment, the Castorone is
Tectubi Raccordi SpA the only vessel in the world with
A talk with Renato Velli this technology, and we are very
proud to have built it.
52
SAIPEM SUSTAINABILITY 2015 53
Saipem,
an Oil Spill Response service provider
The Saipem Oil Spill Response Team (OSRT) has provided Oil
Spill Response Services since the 1990s. In 2015, the team
provided technical support for the execution of a spill drill
promoted and organised by the Ministry of Environment in
collaboration with the Coast Guard and Eni UPS (Upstream
and technical services). The drill, called Pollex 2015, took
place October 13 in the waters off the port of Crotone.
The purpose was to test the organisational machinery A Sinergia programme class
implemented to combat a pollution scenario caused by the
spillage of hydrocarbons at sea during refuelling operations between schools and businesses is really possible.
from the storage tank of the emergency power generators Specific afternoon courses were held on several training
on the Luna A platform. topics of interest to Saipem and with the A. Volta school
OSRT collaborated with Eni UPS in maintaining relations in Lodi with more detailed activities being developed.
with local authorities and organising and managing More specifically, during the reporting year the project
operations. The results were good and the various was extended to classes III and IV and Saipem modules
maritime authorities directing and supervising the were integrated into the daytime training syllabuses of
drills were unanimous in recognising their overall class V in accordance with other subjects of study.
responsiveness and organisation. Similar emergency drills The lessons included both general and highly technical
were performed in the offshore sites of Ravenna-Pesaro topics, ranging from the oil cycle to real-life company
and Gela. case studies, and comprising subjects such as
automation, welding, design, 3D modelling, and health and
Fruitful relationship safety in both offshore and onshore contexts.
with local high schools Given the markedly technical and specialist nature of
The Sinergia programme, launched in 2012, aims to Saipems activities, students majoring in mechanical
develop concrete communication between educational and electrotechnical techniques were involved. Project
institutions and the workplace and to strengthen the internships were available for several students who thus
technical capabilities of students in a way that will had the opportunity to see where they stood in relation
facilitate their job search upon leaving school. With the to real, concrete issues.
cooperation of two high schools (E. Fermi in Lecce The project is undergoing constant transformation and
and A. Volta in Lodi), the project has in fact proved updating and is an example of an effective and mutual
beyond all doubt that fruitful and long-term partnerships beneficial partnership between companies and schools.
Angola
Saipem has been present in Angola since the early
1980s through several joint venture companies and local
subsidiary businesses:
2,307
SAIPEMS EMPLOYEES
Saipem SA Angolan Branch (for offshore and
onshore E&C activities).
Saipem Luxembourg Angola Branches (for Drilling
and FPSO activities).
62%
Petromar Lda. OF WHICH ARE LOCAL
Kwanda Lda (for Logistic Base, Dock, Warehouse,
Workshops, Storage Areas, Accommodations in Soyo).
Sagio (for FPSO Operation and Maintenance).
TCPI (for E&I works).
44%
OF MANAGERS ARE LOCAL
Deepwater Engineering and Technology (for
Engineering and project management services).
Offloading (FPSO) were recently awarded, and a
Saipems long-term and deep-rooted presence has seven-year operations and maintenance contract
played an important role in the evolution of how it for the Kaombo Field Development project, located in
operates in the country and the significant long-term offshore Block 32.
investments made by the Company are proof of that as Mafumeira Sul EPCI 2 Offshore Pipeline: consists of
seen in the following: an EPCI project composed of the Fabrication of 2 Tie-
Ambriz Yard was redeveloped and requalified after In Skids (89 t) and 48 spools Cabinda Gulf Oil Co Ltd
2002. It is used for all types of modules and steel (CABGOC) EPCI 2 Offshore (149 t).
structures utilised in projects for the development of Girri FPSO Modifications: the contract includes
offshore oilfields: platforms, jackets, topsides, decks, engineering, procurement, construction, installation
piles and subsea structures such as flexible pipes and and commissioning of modifications to the multiphase
jumpers. pumping systems of the topsides of the Girassol and
Malongo (Cabinda) fabrication workshop used for Dalia FPSOs. Offshore activities started in 2015 mainly
the construction of jackets and decks. using Saipem 3000.
Soyo Yard specialised in the construction of Kizomba Satellites Phase 2: is an E&C contract
deepwater facilities. consisting of the development of Block 15,
approximately 150 km off the coast of Angola, at a
Saipems activities
water depth of approximately 1,350 m.
Congo River Crossing: the scope of work includes
Saipem has a strong track record in Angola in EPCI of three subsea pipelines, 20 and 22 in
executing both offshore and onshore EPCI projects, in diameter, with a total length of 110 km, in water
performing advanced ultra-deepwater offshore drilling depths of up to 117 m.
projects and in managing fabrication and operations
for all the oil majors present there. As far as drilling activities are concerned, Saipem has
Today Saipem undertakes activities in various areas been awarded numerous offshore contracts for the
across the country. Here a list of the main current Saipem 12000 and Scarabeo 9 vessels. Saipem 12000 is
projects: presently working in local waters for Total and Scarabeo
East Hub Development project: the scope of work 9 for Eni Angola.
includes the provision of 5 flexible risers and 20 km
of rigid flowlines, as well as installing SURF facilities
which include umbilical sections, rigid spools, well
Business outlook
jumpers and 14 Pipeline End Terminations (PLETs) to Angola represents a very active market for Saipem.
be fabricated in Angola. Indeed Saipem is pursuing numerous commercial
Kaombo FPSO project: engineering, procurement, opportunities, in particular in the offshore market, in the
installation contract and commissioning of 2 converted short term with proposal preparation and in many cases
54 turret-moored Floating Production, Storage and negotiations are well under way.
SAIPEM SUSTAINABILITY 2015 55
6
FIVE STARS TRAINERS
3
LiHS FACILITATORS
Lab Technicians during a Malaria awareness session
In
Increasing awareness on ethical business
Lab Technicians during a Malaria awareness session practices
pr
Congo
Saipem operates in the Congo through two companies:
Boscongo SA (since 1981) was originally created
to improve Congolese employment through Oil & Gas
426
development. Nowadays, wholly owned by Saipem, it SAIPEMS EMPLOYEES
focuses primarily on the fabrication of large modules
and steel structures.
Saipem SpA Congo Drilling Branch (since the
1970s) manages both onshore and offshore drilling
468
PEOPLE HIRED THROUGH EMPLOYMENT AGENCIES
operations.
Saipem can also count on the Boscongo Fabrication Yard,
recently redeveloped to achieve the fabricated tonnage
of 12,000 tonnes/y, as well as the Boscongo Marine Base,
75%
strategically very important for providing the technical back- OF PEOPLE WORKING FOR SAIPEM ARE LOCAL
up of Saipems fleet for South Atlantic offshore operations.
58
SAIPEM SUSTAINABILITY 2015 59
82
PARTICIPANTS IN THE WORKSHOP
600
programme for the fight against malaria in 2015. The
initiative was targeted at 3 health workers from the
Kouilou rural areas and was carried out in partnership
with the Biomedical laboratory and the Kouilou Health SUBCONTRACTORS PARTICIPATED
Department Direction. The latter identified the trainees
who will transfer the acquired knowledge to their Boscongos internship programme
colleagues. They were trained in the laboratory in malaria Among the initiatives for local communities promoted by
diagnostic techniques using a microscope provided by the Litchendjili project, Boscongo organised an internship
Boscongo. The duration of training was approximately 50 programme to overcome the lack of apprenticeships in
days. The goal of the initiative was to increase the health the local educational system.
workers skills and capabilities, and consequently increase To analyse the feasibility of initiating the programme,
the quality of healthcare in rural areas. some technical public schools were screened during
the planning phase, and the Thomas Sankara school in
3
Pointe-Noire was selected. In January 2015, 9 trainees
started the one-month internship in Mechanical,
Electrical and Civil Engineering.
HEALTH WORKERS WERE TRAINED All of them concluded their internship programme with
IN MALARIA DIAGNOSTIC TECHNIQUES a satisfactory report from the Boscongo manager
in charge of supervision in their field. The students
In the framework of the Litchendjili projects sustainability appreciated the experience and in just one month
programme, an in-house workshop for employees was acquired a degree of knowledge that they could have
organised in Saipems offices. The initiative covered both gained only by working in a company. The school staff
have welcomed the programme and have asked for it to
be extended officially each year to enable local education
enhancement.
9
STUDENTS TRAINED
Opening of a documentation
and information centre
60
SAIPEM SUSTAINABILITY 2015 61
Nigeria
Saipems presence in Nigeria dates back to 1965 through
Saipem Nigeria Ltd (SNL), a subsidiary operating as an
onshore and offshore drilling Contractor and, since 1989,
4,380
SAIPEMS EMPLOYEES
through Saipem Contracting (Nigeria) Ltd (SCNL)
operating as an EPC Contractor. The head office is based
in Lagos with two logistics bases in Onne and Warri and
a yard at Port Harcourt where all the main fabrication
88%
activities are performed. OF WHICH ARE LOCAL
Saipems activities
Saipem has a significant track record in the country both
60%
OF MANAGERS ARE LOCAL
in the onshore and offshore business.
Escravos Gas to Liquids Complex for Chevron Nigeria
Ltd represents Saipems biggest ever modularised
plant (pipe rack modules of over 1,000 tonnes each,
81%
process modules of over 2,000 tonnes each) and also OF GOODS AND SERVICES ORDERED LOCALLY
the first application of the Gas-to-Liquids technology on
a world-class scale.
Southern Swamp (Associated Gas Solutions -
SSAGS) project is a lump sum turnkey contract for
72,618
TOTAL TRAINING MAN-HOURS DELIVERED
the construction of compression facilities at the four
TO SAIPEMS EMPLOYEES
sites of Ogbotobo, Beneside, Opukushi and Tunu, and
of new gas Central Production facilities in Tunu, which
will treat the routed associated gas.
Dangote Fertilizer project consists in the
implementation of 2x2,200 tonnes/d Ammonia Plants
based on HTAS (Haldor Topsoe) technology, 2x3,850 In 2014, the Company was awarded two FEED (Front
tonnes/d Melt Urea Plants based on SnamprogettiTM End Engineering Design) contracts, respectively for the
technology, 2x3,850 tonnes/d Urea Granulation Plants Quantum project (production of methanol and associated
based on Uhde Fertilizer technology including 22 km of utilities and off-sites in Ibeno city in the state of Akwa
a raw water Pipeline and 5 km of a gas Pipeline plus all Ibom), and for the Brass Fertilizer project (construction
the associated utilities. of a 5,000 tonnes/d Methanol plant, a 2,200 tonnes/d
Egina project is considered a milestone in the offshore Ammonia plant to produce 3,850 tonnes/d Urea,
deepwater field (1,700 m of water depth, 52 km of associated utilities and power generation). Both FEED
oil production/water injection flowlines, 20 km of gas contracts were completed in mid-2015.
export pipelines and 80 km of umbilicals off to the
Nigerian coast, South of Port Harcourt). The majority
of the activities are performed in Nigeria, involving local
Business outlook
vendors and confirming Saipems strong commitment to Nigeria is considered an important market for Saipem.
Local Content in the country in line with the Nigerian Oil Saipems strategy in the country has always been based
and Gas Industry Content Development Act of 2010. on a willingness to stay with a strong commitment
Bonga North West project is an important reference to create added value to Nigerias economy and
for Saipem for the production of pipe-in-pipe flowlines, society. The Company is working on the promotion and
water injection flowlines, as well as related production development of Local Content with long-term investments,
facilities. The project was completed in 2013. partnerships with local companies and maximisation of
Okwori 22-26 is the main reference for drilling value in terms of local employment and procurement
activities performed by Saipem with Scarabeo 3. of material and services for projects executed in the
Water depth 130 m. country.
62
SAIPEM SUSTAINABILITY 2015 63
64
TOTAL NUMBER OF TRAINEES
5
STUDENTS PARTICIPATED IN THE POST
GRADUATE TRAINING PROGRAMME
Brainstorming during an HSE Forum
Azerbaijan
After a brief spell in 1996, Saipem has been continuously
present in Azerbaijan since 2002 as an installation and
fabrication contractor for the Azeri Oil & Gas industry.
1,094
SAIPEMS EMPLOYEES
Today, Saipem operates in Azerbaijan mainly through
Saipem Contracting Netherlands BV Azerbaijan Branch.
Saipems activities
51%
OF WHICH ARE LOCAL
Saipems recent activities in the country can be
summarised as follows:
Azeri-Chirag-Gunashili (ACG) oil field development 82%
project: Saipem worked on a project known as the OF GOODS AND SERVICES ORDERED LOCALLY
contract of the century, from 2002 until 2008. The
field produced close to 1 million barrels of oil a day.
Furthermore, Saipem was contracted to provide
inspection, maintenance and repair of the related
47,571
TOTAL TRAINING MAN-HOURS DELIVERED
production installations.
TO SAIPEMS EMPLOYEES
Shah Deniz 2 (SD2) gas field project & South
Caucasus Pipeline Expansion (SCPX) project: in 2014,
Saipem was awarded multibillion contracts by BP for contain options that could extend Saipems activities to
the installation of all the offshore structures of the new 2022 or later.
Shah Deniz 2 gas field project and for the construction A relevant key factor for the success of the project
and commissioning of the SCPX project in Azerbaijan award is the fact that, in line with its sustainability
and Georgia. Shah Deniz Stage 2 project activities are policy, Saipem has formed partnerships with local
carried out in the Shah Deniz field (Caspian Sea), 90 km companies, the most important one being with BOS
offshore Azerbaijan in water depths between 75 to 550 Shelf, a local fabrication company originally founded
metres. The scope of work of the project includes the by Saipem in a JV with Socar, the National Oil & Gas
transportation and installation of jackets, topsides and company. The ownership of this company has now been
subsea production systems and structures, the laying of transferred to Socar; the company will provide a large
over 360 km pipelines, diving support services and the part of the fabrication work for the SD2 project as a
upgrade of the Pipelay Barge Israfil Huseynov (PLBH), partner of Saipem in a Consortium.
Dive Support Vessel Academic Tofig Ismayilov (DSV ATI)
and Derrick Barge Azerbaijan (DBA) installation vessels.
The SCPX project, whose scope of work consists of
Business outlook
laying 487 km of pipeline (of which 63 km are located Particular focus will be placed on the Downstream & Power
in Georgia), is being implemented by the Saipem-Azfen Generation field. Azerbaijan is looking to diversify its
Joint Venture (SAJV), formed by Saipem and the local natural resource-dependent economy. In the meanwhile,
Oil & Gas contractor, Azfen. These contracts are the country is moving forward with ambitious downstream
considered very strategic for BP and for the Republic projects, most notably in petrochemicals. This is largely
of Azerbaijan, as the projects will deliver gas to Europe supported by capital generated during the expansion of
via the TAP pipeline. The execution of these contracts national oil production in the 2000s. Azerbaijan represents a
will last at least until 2018. However, the agreements good area of opportunity in the near future for Saipem.
66
SAIPEM SUSTAINABILITY 2015 67
Protecting biodiversity
The SCPX pipeline route is located in the Kur-Araz Valley
and Floodplain Ecoregion, not crossing any ecologically
protected areas but passing through impact-sensitive
ones.
Since several ecological sensitivities were identified,
the SCPX project includes many stringent environmental
requirements related to ecosystems, habitats and
sspecies protection before and during construction:
Medical training course
disturbance minimisation;
working width restriction;
Promoting Local Content flora and fauna translocation;
in operating projects avoiding seasonal sensitivities;
The SCPX project has different challenges: the number traffic restrictions; and
of local communities potentially affected by project aquatic environment protection.
operations (147 Project Affected Communities (PACs), All these aspects are managed and described in an
of which 102 PACs in Azerbaijan and 45 in Georgia) and Ecological Management Plan. The client appointed
the challenging local content requirements also involving an Ecological Management Contractor (EMC) that
subcontractors personnel. is coordinated by Saipem and that carries out
With the aim of bringing awareness to local communities Preconstruction Ecological Surveys for all project
located within the Project Zone of Influence, SAJV areas. The Preconstruction Ecological Surveys report is
organised periodic public meetings to inform community used as an environmental document to compile all site
members in advance about project activities to be held specific ecological baseline conditions and proposed
in their particular areas and how these operations could mitigation actions. EMC performed the pre-construction
affect and impact them. 21 community safety meetings survey undertaken in the 0-69 km section of the SCPX
and 18 school safety sessions were held. route in order to identify the presence of the Iris
In the framework of the project local employment Acutiloba species during and after the flowering season,
68 strategy, SAJV carried out awareness sessions for local between April and May.
SAIPEM SUSTAINABILITY 2015 69
Digging out the plant and bulb with native soil during
Pre-construction survey of Iris Acutiloba transplantation of Iris Acutiloba
Iris Acutiloba is an endemic and rare Caucasian species Spill prevention and preparedness
which is included in the revised Red Data Book of in sensitive areas
Azerbaijan (2nd Ed., 2013). Its National IUCN Status was The Shah Deniz 2 project takes into account a wide range
recorded as vulnerable. of international and regional environmental conventions
Flowering Iris Acutiloba were found at 47 locations and commits to complying with national environmental
during the first part of the survey. An additional larger legal requirements and industry best standards and
area with flowering plants was found immediately practices.
outside the route. A dedicated site meeting was held by The Caspian Sea is an area of high environmental and
the SAJV Environmental Team and other staff to provide socio-economic sensitivity due to its geographic position
information on how to ensure effective protection of the and singularity (it is the worlds largest salt-water
area. lake). Ecologically, it is an important spawning, feeding
The second part of the survey covered the remaining and migration area for a number of fish species, such
part of the potential habitat along the SCPX route up to as sturgeons; it is the principal flyway for waterfowl
km 69. Both flowering and non-flowering plants were and shorebirds migrating from Africa and the Middle
found at 11 locations of this section. 7 flowering plants East to northern Russia and Siberia, as well as the
were also found at 2 sites outside the route. home for the endemic and endangered Caspian seal.
Overall, more than 360 individual Iris Acutiloba plants From a socio-economic aspect it possesses a great
were found inside the 0-69 km section and were commercial fishing value and is one of the worlds major
immediately transplanted in receptor sites carefully oil-producing regions.
selected to provide a suitable micro-habitat and In order to preserve the Caspian Sea and ensure
exposure. Rounds of monitoring were carried out to long-term and sustainable operations, the project
observe the condition of the plants and confirm the has recognised spill prevention as one of the main
success of the transplantation. environmental objectives and has developed pollution
hazard maps for all worksites (Pipelay Barge Israfil
360
Huseynov, Derrick Barge Azerbaijan, Dive Support
more than Vessel, as well as landfall site). The pollution hazard
maps contain information about the sources of
IRIS ACUTILOBA PLANTS TRANSPLANTED potential pollution, the location of spill response
equipment, as well as the quantity of spill response
materials. These maps are posted in various locations
around the project worksites and communicated by
each supervisor to the workforce during regular Tool
Box Talks.
The maps are continuously updated in line with changes
in areas for the storage of potential sources of pollution.
Identification and mapping of spill sources in the facilities
(e.g. vessels and landfall site) is only the first step in the
overall spill risk assessment process. However, it is a
ccr
crucial element in ensuring reliable and high-quality input
The Iris Acutiloba
tto spill response planning and control.
SAIPEMs presence in:
Kazakhstan
Saipem has been present in the country since 1995.
It is represented by different companies, namely:
Ersai Caspian Contractor Llc, founded in 2003 in
3,268
SAIPEMS EMPLOYEES
Aktau, operating the Kuryk shore yard, located 70 km
south of Aktau City in an area of about 220 hectares,
a fully-equipped construction base with fabrication
and personnel accommodation facilities. Ersai is now
64%
the leading company in the Mangystau region and OF WHICH ARE LOCAL
can provide a very large range of services, such as
all types of cutting, bevelling, welding and painting
equipment and cranage with up to 1,000 tonnes lifting
capacity.
670
FRAMEWORK AGREEMENTS SIGNED
Saipem SpA Kazakhstan Branch, with offices in
Almaty, Aktau, Uralsk, Atyrau, and Aktyubinsk.
Saipar Drilling Co, a joint venture company with
Parker, based in Aksai.
52,757
TOTAL TRAINING MAN-HOURS DELIVERED
Saipems activities TO SAIPEMS EMPLOYEES
On-the-ground presence
Starting from the analysis of the needs of local
13
STUDENTS ENROLLED
communities and their expectations, every year
Ersai defines a Sustainability Plan in agreement with
local authorities and local communities.
This includes all initiatives mainly aimed at creating value
3
in communities through health promotion, education and UNIVERSITIES INVOLVED IN THE PROGRAMME
environmental and cultural awareness. In particular, For 2016, Ersai is planning to enrol 5 more students
the focus on youngsters and their education and under the Ersai Scholarship Programme.
wellbeing is an essential aspect to guarantee the future
development of local communities. Boosting entrepreneurial potential
Ersai, in partnership with the Eurasia Foundation of
Ersai Scholarship Programme Central Asia (EFCA), supports the entrepreneurship
Since 2009, Ersai has successfully implemented its programme in Kuryk.
scholarship programme for school-leavers from The project Boosting Entrepreneurship Potential
low-income families in Kuryk village. in Kuryk is designed to address the unemployment
The main purpose is to support students from needy challenges in Mangystau Oblast.
families by financing their studies at one of the State To achieve its goal, Ersai and EFCA have adopted two
Universities of Kazakhstan in the specialisations required approaches:
by the Company (i.e. welding engineers, electricians, 1) Develop business skills and opportunities of Kuryk
mechanical engineers, ecologists, certification citizens in order to encourage them to start or improve
engineers, etc.). Ersai provides tuition payment for 5 small businesses that serve local community needs.
years, a monthly allowance and transport costs. 2) Introduce handicrafts as a professional opportunity
The annual selection of candidates takes place in two and a source of income for Kuryk women.
stages: a preliminary test and an interview. As part of the first business development component,
Ersai focuses on conducting business development
9
training by organising business plan competitions and
providing small grants and ongoing assistance to new
entrepreneurs. As part of the second handicrafts
GRADUATE STUDENTS WORKING IN ERSAI development component, Ersai focuses on holding
craft workshops, performing arts-marketing and basic
72 Montessori training
(*) June 2014-December 2015.
SAIPEM SUSTAINABILITY 2015 73
We started Montessori group in our kindergarten in April 2015 and have already
received positive feedback from parents Children really enjoy being in a Montessori
environment, as they calm down and learn things... The more I work with Montessori
methodology the more I love it, feel it and understand it. Now I dont want to go back to
conventional education. Montessori has become my lifestyle!.
Teacher, Aygolek kindergarten
18
SAUDI ARABIA COMPANY MANAGERS ATTENDED
Shah-Habshan-Ruwais Etihad:
infrastructure project of the year
Saipems Shah-Habshan-Ruwais Etihad Rail is expected to benefit
Etihad Railway project was named local communities and the national
Infrastructure Project of the Year economy greatly.
at the Construction Week Awards Giuseppe Iocco, Project Director
2015 held in Dubai. The project at Saipem, said: The scale and
encompassed the engineering, complexity of this project was
procurement and construction of a immense, so to win this award is
railway line for the transportation extremely gratifying. We actually
of granulated sulphur, linking the set a new world record during the
natural gas production fields of Shah construction 70 km of track laid
76 and Habshan to the port of Ruwais. in a single month.
SAIPEM SUSTAINABILITY 2015 77
activities in terms of results, as well as in terms of levels top quality training courses to continue to empower
of integration and team work. employees with the right knowledge and expertise.
Saipem will monitor progress towards the 2016 Here are some significant training sessions:
undertakings throughout the year and these will be Training programme for Iraqi nationals: as per
discussed at next years HSE Forum, which will become project requirements, 30 Iraqi SOC (South Oil Co,
an official event in Saudi Arabia Operations. Achieving the client) employees were trained and divided in
improvements in the HSE culture of subcontractors three different groups (Technical, Operation and
represents a concrete investment in the local economy Management and AFC). The trainings were composed
and will be of direct benefit to Saipem. of 3 modules: Soft and Professional skills, Oil & Gas
Industry Knowledge and Technical skills. The training
17
started in June 2013 and was concluded in December
2014.
Training programme for Mozambican graduates:
MAJOR SUBCONTRACTORS PARTICIPATED
as support to Saipem Mozambique, 13 graduates
IN THE EVENT
attended classroom training sessions in Sharjah.
The Training courses conducted focused on the
Saipems training hub in the Middle East following areas: Project Management, Engineering,
The Saipem Sharjah Training Centre was formally Construction, Quality, HSE, Project Control, Contract
established in 2011 with the completion of the Training Administration.
Centres main building at Saipems Logistic Base located Saudi internship programme of Al Wasit project: in
at Port Khalid. The primary goal of the Training Centre June 2011, 10 local engineers in multiple disciplines
was to cater employee training needs by delivering were hired by Saipem and were provided on-the-job
top-class courses, while being the epicentre of training training, development programmes and responsibilities
excellence in the Middle East region. within the Companys organisation. They were
To date, the Saipem Sharjah Training Centre has widened mobilised to the Design Office, Fabrication Office and
its horizon by also assisting other Saipem Branches the In-Kingdom Work site and Offshore spreads. The
outside the Middle East. programme started 60 days after the beginning of the
In 2015 alone, the Saipem Sharjah Training Centre project and lasted till its completion.
delivered an average of 3 training sessions per month. In addition, the training centre developed a successful
The three sessions conducted covered managerial, partnership with King Fahad University & Minerals
technical and safety topics. The training courses (KFUPM) for project environmental services and
were attended by employees from different Saipem compliance monitoring in the Al Wasit project.
companies/branches. The university (located in Dhahran, Saudi Arabia)
Since its inception, the Sharjah Training Centre had is a local leading educational organisation for science
already facilitated more than 500 training sessions and technology that conducts high quality monitoring
and thousands of man-hours. Yet still, it remains fully and research studies for Oil & Gas projects.
committed to improving and excelling in delivering Saipem requested the KFUPM Research Institute
to prepare a report on Environmental and Compliance
Training man-hours per training type Monitoring for the activities associated with the
in Sharjah Training Centre development of the Saudi Aramco Arabiyah and Hasbah
Gas Field. Monitoring was conducted between the
years 2012-2015, and a monthly monitoring report was
submitted by KFUPM. No major non-compliance issues
24% were observed.
36%
40%
Managerial
Technical
HSE
SAIPEMs presence in:
Indonesia
Saipem has been operating in Indonesia since 1995,
represented locally by PT Saipem Indonesia (PTSI).
It is based in Jakarta with a Branch on Karimun Island,
3,584
SAIPEMS EMPLOYEES
where the fabrication yard was officially opened in 2011.
The subsidiary is active in Saipems Offshore, Floaters,
Onshore and Drilling businesses.
83%
Saipem Karimun Fabrication Yard is currently the OF WHICH ARE LOCAL
biggest fabrication installation in Southeast Asia,
acting as a key player in the Oil & Gas industry in
Indonesia where, jointly with the Jakarta EPCI Centre,
Saipem Indonesia is qualified to perform Engineering,
87%
OF GOODS AND SERVICES ORDERED LOCALLY
Procurement, Construction and Installation for both
Offshore and Onshore projects.
Furthermore, in recent years PT Saipem Indonesia has
operated deepwater drilling vessels such as the Saipem
110,650
10000 and currently the Scarabeo 7 for the development TOTAL TRAINING MAN-HOURS DELIVERED
of the Eni Muara Bakau field (Jangkrik Complex project). TO SAIPEMS EMPLOYEES
Saipems activities
Saipem is a landmark contractor in Indonesia thanks
to its offshore track record. Its reputation today is
enhanced by the execution of extremely complex
projects in the Jakarta Operating Centre, as well as
operations on Karimun Island.
This refurbishment has really helped reduce the hygiene problem at our school
and we are happy and satisfied with the whole improvement,
thanks to PT Saipem Indonesia.
Feedback from a student
the girls toilet, consisting of 2 squat toilets, 1 seat Promote innovation through sharing of knowledge and
toilet, 2 washbasins, mirrors, walls and tiled floors. ideas between young and experienced staff.
In addition, this refurbishment included ceiling and The programme consisted in both individual and group
plumbing arrangements. The initiative was highly sessions based on case study discussion and problem
appreciated, especially by the students. solving. Mentors and YEs provided materials, presented
the case study and managed the group sessions.
Mentors analysed the potential of YEs, and supported
Scouting young talents them from beginning to end in approaching the case
The Young Engineer Sustainable Development study and evaluating their improvements through
Programme (YESDP) started in 2015. Launched in individual assessment.
Jakarta, it involved 13 young engineers (YE) who were
assisted by 5 seniors, their mentors. YESDP aimed to:
Develop the soft skills of young resources, such as
communication, negotiation, leadership, organisation,
problem solving and decision making.
Foster an understanding of the Oil & Gas business,
project management methods, EPCI project flow and
technical engineering competencies.
Brazil
Saipem has been active in Brazil since 2002 and currently
operates through its local entity, Saipem do Brasil
Servis de Petroleo Ltda (SdB). Recently Saipem
1,527
SAIPEMS EMPLOYEES
completed its world-class offshore prefabrication
yard located in Guaruj, a metropolitan area in the
coastal region of the So Paulo state which is very
well-positioned to serve the rising offshore Santos
63%
basin. The Centre for Technology and Construction OF WHICH ARE LOCAL
Offshore (CTCO) of Guaruj consists of an operational
base with onshore facilities for storage, assembly and
submarine component shipment, in order to support
offshore activities carried out by Saipem in Brazil. CTCO
51%
OF MANAGERS ARE LOCAL
supports offshore field development projects both as a
yard (e.g. for the fabrication of subsea structures, riser
systems, buoyancy elements) and as a logistics base
(e.g. for the prefabrication of pipe joints to be installed
65,191
offshore). Moreover, Saipem expanded its Rio de Janeiro TOTAL TRAINING MAN-HOURS DELIVERED
engineering and project execution centre, therefore TO SAIPEMS EMPLOYEES
positioning itself as a partner of choice for Petrobras,
capable of serving the National Oil Co as EPCI main Onshore business
contractor with local project teams in full compliance with Saipem has provided Braskem with its Snamprogetti
Brazils Local Content requirements. proprietary license for ETBE (Ethyl tertiary butyl ether),
a bio gasoline additive produced partially from ethanol as
Saipems activities a sustainable alternative to MTBE (Methyl tertiary butyl
ether).
Offshore business
Saipem completed for Petrobras:
challenging deepwater subsea field developments such
Business outlook
as P55 steel catenary risers and flowlines; Notwithstanding the current global Oil & Gas downturn,
offshore deepwater pipelines such as Sapinho (Guara) coupled with reduced spending by Petrobras now
& Lula-NE pipelines and Lula NE-Cernambi pipeline. resulting in a regional slowdown, the offshore basins
Today, Saipem is executing several important deep and in Brazil have a very high potential (Petrobras alone
ultra-deepwater EPCI projects for Petrobras, including: has huge reserves of some 16 billion bbl of oil) and are
Sapinho Norte and Cernambi Sul subsea offshore expected to keep the industry busy again in the medium
development; to long-term. Future opportunities will come not only from
Lula Norte, Lula Sul and Lula Extremo Sul pipelines and the currently declining mature areas but also and mainly
free standing hybrid risers (FSHRs). from further developments in the pre-salt area, including
the huge and technologically challenging Libra field, for
Drilling business which Petrobras, with its partners Total, Shell, CNPC and
In recent years Saipem operated a few onshore rigs for CNOOC, has scheduled a first pilot to go online within the
Petrobras through Petrex, Saipems drilling subsidiary in first quarter 2017. Finally, Brazil is increasingly attracting
South America. the Majors to take operatorship roles.
82
SAIPEM SUSTAINABILITY 2015 83
Guaruj
Dengue cases in Guaruj 416
in 2014
1,222
Source: Jornal A Tribuna. in 2015
rescued in the last 2 years. Saipem also installed banners Practical training for the voluntary fire brigade
and distributed leaflets on the road outside the yard to
everyone passing by calling attention to safe driving to
prevent animals from being run over on the roads around
the yard and all around Brazil. More than 475 million
animals are run over each year on Brazilian roads.
The motto of the day was: Respect the speed limit.
Respect life!.
about 60
ANIMALS RESCUED IN THE LAST 2 YEARS
Collecting waste during Coastal Cleanup Day in August on subsea engineering to the students of the
University of Ribeiro Preto (Unaerp), one of the largest
higher education and technology centres in the state of
So Paulo, to provide a comprehensive description of
projects developed by Saipem in Brazil and worldwide.
For the occasion the SELCE Brazil study (carried out
in 2014) was presented, pointing out the positive
contribution of the Company in Guaruj and Baixada
Santistas socio-economic context.
139
STUDENTS ATTENDING LECTURE
700
PEOPLE PARTICIPATING IN BEACH
CLEANUP DAY
Marine works
Business outlook
A few years ago, Saipem Group, together with At the end of 2016, at Mariposa lake, 300 km from
Oderbrecht as commercial partner, implemented two Santiago, Petrex will start drilling for a new geothermic
marine works in Peru on an EPC basis: project on behalf of EDC, a Philippine company operating
Puerto Callao Muele Sur: construction of a large pier in power generation from unconventional sources.
with relevant infrastructures at Puerto Callao, near Looking to the near future, opportunities may arise
Lima, for the Dubai Port World (2008-2010); for Saipem, particularly in the onshore downstream
Puerto Melchorita LNG: construction of the port of business (refining segment).
Melchorita for Peru LNG (2007-2010).
86
SAIPEM SUSTAINABILITY 2015 87
families, introducing the principles of prevention and the temporary hiring of local inhabitants among its
making them capable of identifying the hazards of contractors.
everyday activities, and raising their awareness of
Saipems operations and its Health and Safety Vision.
In 2014, Petrex improved the programme by integrating
6
elements from the LiHS programme. Since then, the INTRODUCTION TO DRILLING WORKSHOPS
programme has been called FamiLiHS. CARRIED OUT
233
FAMILIES PARTICIPATED IN FAMILiHS
PROGRAMME IN 2015
Thanks to Petrex, today we learned important things that will serve as the basis
for future employment opportunities.
We hope they will continue with these workshops, helping many more people,
just like they helped us.
An Introduction to Drilling participant
88
SAIPEM SUSTAINABILITY 2015 89
In 2015, the Petrex Base in Talara joined the programme Promote recycling in Bolivia
and facilitated expansion of the projects scope to areas
at greatest endemic risk. The health campaign was
developed over two phases in June and in September-
October: the first involved publicity through posters
placed in public places; the second consisted of
in-home inspections in sensitive areas of Talara,
reaching 4,410 homes and 16,379 habitants.
4,410
HOMES INSPECTED FOR DENGUE CONTROL
Introducing children to recycling
30
WOMEN INVOLVED IN THE INITIATIVE
Materiality analysis
In order to define the sustainability themes considered most significant, both within the Company and in relation to
stakeholders, a materiality analysis was once again carried out in 2015, hence for the fifth year running.
The first step entailed identifying the significant aspects which are considered in the analysis in order to pinpoint those
that are material. The identification is based on the sustainability context and on the analysis of the stakeholders involved.
In order to simplify analysis and comparison of results, the 31 topics identified were broken down into 5 macro categories:
Environment, Business Management, Employees, Human Rights and Local Communities.
The level of external interest was defined by interviewing and surveying a balanced mix of external stakeholders, in terms of
types of organisation (29 clients, 10 local community/NGO representatives, 19 business partners and vendors, 3 business
associations, 10 investors and 5 government and regulator representatives) and geographic focus (6% international, 24%
European, 16% from CIS area, 20% African, 25% American, and 9% Asia-Pacific area). The results were integrated with the
results collected in the sustainability section of the Engagement Survey which involved more than 7,400 employees.
In order to define the level of internal significance, a working session was organised in November 2015. A representative
panel of Saipem management actively participated. In the first part of the working session managers were asked to
identify the most important themes, in terms of risk and opportunities, for the long-term success of the Company.
The materiality of topics is determined by the nexus of internal and external significance. In the second part of the session,
they were divided in 4 working tables (according to their areas of expertise) to discuss the resulting material issues.
The discussion provided the input for the preparation of a first draft of the 2016 Saipem Sustainability plan.
The materiality analysis results and the draft of the 2016 Sustainability plan were verified and approved by the
Sustainability Committee in December 2015.
Sustainability priorities
eth
saf
ass
le
tra
lab
sec spi tr
Importance to stakeholders
sup
so lp fle
eme wp
bio cg en tal
cc ci
wg h
chi wm
ghg
div re
gen
pub
cha
Importance to business
Environment Business Management Employees Human Rights Local Communities
bio Biodiversity and impact ass Safe operations, asset div Global diversity and inclusion chi Child labour, forced ci Community initiatives
on ecosystems integrity and process safety gen Gender equality or compulsory labour cha Charity donations
cc Climate change mitigation cg Corporate Governance h Health lab Labour rights and volunteering
en Energy efficiency eth Anti-Corruption and ethical saf Safety sec Security practices eme Emergency preparedness
ghg GHG emission business practices le Local employment
tal Talent attraction and retention
re Renewables fle Innovation and business lp Local procurement
tr Training and development
spi Spill prevention flexibility so Local social licence to operate
and response pub Public policy engagement
wg Waste generation sup Ethical supply chain
wm Water management tra Transparency
wp Water pollution
The vertical axis of the matrix represents the Importance to Stakeholders, and the horizontal axis represents the
Importance to Business. The GRI G4 guidelines recommend that reporters define the vertical axis as Influence
on Stakeholder Assessments and Decisions, which corresponds substantially with the above mentioned definition
(Importance to Stakeholders). The GRI also recommends that reporters define the horizontal axis as Significant
Economic, Environmental, and Social Impacts. After internal consideration, it was decided to retain the Importance to
business definition for the horizontal axis in order for the materiality matrix to focus on Saipems overall sustainability
strategy, rather than on simply identifying impacts.
Selection of the activities and programmes to be reported in detail in relation to the themes identified as material was
carried out with due regard for the sustainability context in which Saipem operates.
Greater weight was assigned to those issues and geographical areas in which the Company has a more significant impact.
Where possible, project performance indicators reported were contextualised with reference to detailed information on
local conditions.
The reporting boundary
In order to facilitate reader comprehension of performance trends over time, Saipem Sustainability contains information
on, and a description of, the sustainability initiatives and the performance indicators of Saipem SpA and all of its
subsidiaries, including any companies involved in joint ventures with it, for the 2013-2015 period. According to the GRI G4
guideline, the boundary of Saipem material issues refers to the description of where they occur (both inside and outside
the Company boundary). Saipems material issues and the corresponding GRI G4 aspects are listed in the chart below.
Material issue
1) Safety
I Corresponding GRI G4 aspect
Occupational Health and Safety
2) Safe operations, asset integrity and process safety Occupational Health and Safety
3) Spill prevention and response Effluents and waste
4) Local employment Market presence
5) Local procurement Procurement practices
6) Local social licence to operate Local Communities, Indirect economic impacts
7) Anti-Corruption and ethical business practices Anti-Corruption, Labour Practices Grievance
Mechanism, Human rights Grievance Mechanism,
Investments
8) Innovation and business flexibility n.a.
9) Transparency n.a.
10) Ethical supply chain Supplier environmental assessment, Supplier
Assessment for Labour Practices, Supplier Human
Rights Assessment
11) Training and development Training and education
12) Labour rights Employment, Freedom of Association and Collective
Bargaining, Child Labour, Forced and Compulsory
Labour, Non-discrimination, Diversity and equal
opportunities
Material issues
Energy efficiency
I Corresponding GRI G4 aspect
Energy
Climate change mitigation Emissions
Internal boundary
The above issues are material for all Business Units. As regards financial data, in line with the drafting of the financial
statements, the reference perimeter corresponds to the area of consolidation. Alongside financial performance,
sustainability reporting also describes social and environmental performances and hence includes numerous topics for
which perimeters differing from those used in financial reporting are applied. For HSE data, the reporting perimeter
includes all activities in which Saipem is responsible for setting HSE standards and for ensuring and overseeing their
application. As regards other thematic areas, Saipem reports 100% of operations in which Saipem SpA or one of its
subsidiaries exercises operational control.
Companies included in the reporting boundary are listed Further details are available
in the Saipem Group Structure in the Annual Report. in the Annual Report.
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SAIPEM SUSTAINABILITY 2015 93
External boundary
For some material issues, the impact of Saipem activities occurs beyond the organisation boundaries.
In the External boundary column the stakeholder categories impacted by Saipem operations are specified for each
material issue. The limitations that arose that refer to the boundaries of each material issue were also reported (when
needed) in the table below under the Limitations column.
Material issues
1) Safety
I External boundaries
Vendors and subcontractors
I Limitations
Partial for vendors
2) Safe operations, asset integrity and process safety Vendors and subcontractors Partial for vendors
3) Spill prevention and response Vendors and subcontractors Partial for vendors
4) Local employment Local communities, agency personnel -
5) Local procurement Local communities -
6) Local social licence to operate Local communities -
7) Anti-Corruption and ethical Business partners, vendors and subcontractors -
8) Innovation and business flexibility - -
9) Transparency - -
10) Ethical supply chain A Group of vendors Partial for vendors
11) Training and development - -
12) Labour rights - -
Material issues
Energy efficiency
I External boundaries
Vendors and subcontractors
I Limitations
Vendors
Climate change mitigation Vendors and subcontractors Vendors
With regard to the material issues for which reporting has not been extended to the external scope (G4 - omissions),
Saipem will assess the feasibility of increasing the reporting boundary. More details are described in the GRI content index.
Assurance Statement
To assure the reliability of the information provided and to improve the reporting process, Saipem Sustainability 2015 is
subject to limited assurance by Reconta Ernst & Young.
Annexes
Annexes are attached to Saipem Sustainability 2015 and can be found at the following link:
Annex I Annex II
Approach to Sustainability GRI Content Index
Assurance Statement
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SAIPEM SUSTAINABILITY 2015 95
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Headquarters: San Donato Milanese (Milan), Italy
Via Martiri di Cefalonia, 67
Branches: Cortemaggiore (PC), Italy
Via Enrico Mattei, 20
Feedback
What you think of the Saipem Sustainability Report matters to us.
As we are constantly striving to improve our reporting, we would very
much welcome your feedback. We will also be pleased to answer any
questions you may have.
You can submit your comments by email to:
sustainability@saipem.com.
Website: www.saipem.com
Operator: +39-025201
saipem.com