Snam S p A : Annual Report 2021 (PDF)

COMPANY PROFILE

Snam is Europe's leading operator in natural gas transport and storage, with an infrastructure capable of enabling the transition to hydrogen.

It operates a transmission network of around 41,000 km between Italy, Austria, France, Greece and the UK and holds 3.5% of the world's storage capacity. It is among the top ten Italian listed companies by market capitalisation.

With its 80 years of experience in the development and management of networks and plants, it guarantees security of supply and promotes energy transition in the areas it serves. In addition to transport and storage, Snam is also a major player in LNG regasification.

The company is also active in Asia, the Middle East and North America.

Snam is committed to renewing its infrastructure with hydrogen-ready standards and to developing integrated projects along the green gas value chain, with investments in biomethane, hydrogen, sustainable mobility and energy efficiency. It also creates new green areas through a benefit company focused on forestation projects.

Snam has set a zero net Scope 1 and 2 CO2 equivalent emissions target by 2040 and a Scope 3 indirect emissions reduction target (subsidiaries, suppliers) by 2030.

www.snam.it

ANNUAL REPORT

REMUNERATION REPORT

Snam has been following, for some time, a path of integration of the reporting processes based on the assumption that "integrated reporting means integrated thinking". This approach aims at responding to the requests of all stakeholders by means of an extensive, transparent and complete, as well as responsible, corporate reporting. Thanks to the publication of several specific reports, Snam provides a timely and in-depth view of its activities, performance and future objectives.

Snam's reports

INTEGRATED REPORTING MEANS 'INTEGRATED THINKING'

Mandatory

REPORT ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE

This provides detailed information about the company, its governance system and structure, the ownership structure, the internal control and risk management system and related topics.

Voluntary

It describes the Remuneration

Policy of Directors and

Executives, specifying the goals, the involved bodies, the procedures for its adoption and implementation in addition to the remuneration paid.

ANNUALREPORT2021

CLIMATE CHANGE REPORT

It describes the governance, strategy and scenarios, risks and opportunities, metrics and targets for the fight against climate change, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board.

SUSTAINABILITY REPORT

It describes performances and future goals regarding the environmental, social and governance topics (ESG),

strengthening the relationship and collaboration with all the stakeholders of the Company.

2

FOCUS ON

ANNUAL REPORT

This document is an English language translation of the official Italian version and is not provided in the European Single Electronic Format (ESEF) and hence it is not compliant with the provisions of the Commission

Delegated Regulation (EU) 2019/815. The legally required ESEF-format of the Annual Report was filed in Italian language with the storage system "eMarket STORAGE" and is available on the Company's website.

The Annual Report,which includes the Directors' Report, represents the Integrated Report drawn up in accordance with the principles of the Framework of the IIRC (International Integrated Reporting Council), which Snam has applied since 2013. In addition to the Directors' Report, the document also contains the Consolidated Financial Statements and the Separate Financial Statements.

CON NON STAT (Legislative

SOLIDATED -FINANCIAL EMENT 2021 Decree no. 254 of 30 December 2016)

financial performance a situation in which the Gr Directors' Report repres economic/financial perf which are material for th In addition, the Director Non-Financial Stateme the provisions of Legisl specific section of the R management and organ and how they are mana of relevance to the Gro include references to in of the Directors' Repor

The purpose of the Directors' Report is to represent, in addition to annual results, Snam's model for creating sustainable value over the medium/ long-term, highlighting existing connections between strategy, economic/ financial performance and the social, environmental and economic situation in which the Group functions. The aspects dealt with in the Directors' Report represent the main factors which may influence its economic/financial performance and their impacts on sustainability topics which are material for the Group.

In addition, the Directors' Report contains the Consolidated Non-Financial Statement (NFS), which was prepared in accordance with the provisions of Legislative Decree no. 254/2016. The NFS, which is a specific section of the Report, contains information on the company's management and organisational models, the policies practised, the risks and how they are managed, and the performance on sustainability topics of relevance to the Group. When expedient, the contents of the NFS include references to information available in other sections of the Directors' Report, which can be easily identified by theblue "NFS" symbol placed next to the title of the relevant chapter/section.

Additionally, given Snam's adhesion to the Task Force on Climate-Related Financial Disclosure - TCFD, sections of the document which contain information on the TCFD recommendations are identifiedthrough the light blue "TCFD" symbol found next to the title.

DIRECTORS'REPORT-INTEGRATEDREPORT

3