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DIGITAL REPORT 2021
DIGITAL REPORT 2022
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SNAM S.P.A
SNAM IS POWERING ITS WAY TO A
SUSTAINABLE FUTURE
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SNAM S.P.A
Snam is one of Europe’s leading energy infrastructure providers and is undergoing a profound transformation that will see it able to deliver sustainable sources of energy.
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he move to net zero carbon emissions is a focus for all businesses right now, but for giant energy companies such as Snam, sustainability is about far more than greening-up internal working practices and encouraging staff to reduce their carbon footprint. Snam is a world-leading energy infrastructure operator, and one of Italy's largest companies. Sustainability for Snam is about transitioning its entire operation from fossil-based gas to sustainable sources of energy. This is why Snam is in the midst of a business transformation programme that is seeing it deploy data-driven Industry 4.0 technologies across its supply chain. Along the way, it has not only transformed its processes but also its mindset, from one of ‘cost’ to one of ‘value’, especially when it comes to efficiency and sustainability.
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SNAM S.P.A
Snam is powering its way to a sustainable future
Leading the Company’s digital transformation is Claudio Farina, Executive VP of Digital Transformation & Technology (DT&T). Farina was once with Boston Consulting Group, where energy was one of the sectors on which he focused, as well as spending 9 years with Vodafone. He says innovation and digitalisation has been a “leitmotif” throughout his career. Snam’s digital transformation is being built on artificial intelligence (AI) and an Industrial Internet of Things (IIoT) infrastructure, comprising networked sensors, instruments, and devices – all of which feed data into 6
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“ The speed of growth of Industry 4.0 tech is exponential” CLAUDIO FARINA
EXECUTIVE VP OF DIGITAL TRANSFORMATION & TECHNOLOGY, SNAM S.P.A
hybrid cloud-based solutions, to give Snam end-to-end visibility of its supply chain. “Our role in DT&T is as an enabler for transformation and digitalisation,” explains Farina. “It’s our job to make core processes more effective, efficient, flexible and fluid.”
SNAM S.P.A
In terms of technology-driven changes at Snam, he says the key has been de-bottlenecking the value chain of data, from harvesting it in the field, to gaining insights from it and then storing it. “The speed of growth of Industry 4.0 technologies like AI and digital twins is exponential,” he says. “Our ability to process and store data is incomparable when compared with early 2000.” Data is increasingly supporting the way Snam manages its assets,” Farina continues. “It is also making our assets intelligent, so that they are increasingly capable of self-diagnostics and self-regulation.”
Thanks to digitlisation, assets in the Snam energy supply chain can even suggest courses of action, based on available data. “Although people have the final decision,” Farina says, “data is helping us to preserve operational integrity and to optimise emissions and consumption”. It is also supporting Snam in its transition away from fossil-based gas to sustainable energy sources, such as biomethane and hydrogen. Farina adds: “It’s an ambitious multiyear programme, and it needs deep and broad footings to succeed. The ongoing transformation processes comprise 55 staffed projects and planned investment of €500mn.” He says that although data-harvesting technology is what defines the transformation, the most important factor will always be Snam’s people. “Paradoxically, thanks to digitalisation and automation, our people are even more at the centre of everything we do. I think that ultimately this is what will truly make the difference.” He continues: “Supported by technologies and data, our supply chain colleagues will be able to strengthen the entire value chain, because they’ll be better placed to manage tenders, offers and negotiations with our partners.” Specific ways in which technology is helping Snam streamline and automate its ways of working include a solution built on robotic process automation (RPA) - also known as ‘software robotics’. This helps it generate shorter vendor lists on tenders, but without the endless hours of clerical spadework. The RPA solution applies different criteria, such as geo-referencing, analysis of relevant certifications and also of turnover. This cuts down workload in this area from days to minutes. snam.it
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REPLY HELPS SNAM TRANSFORM THE ENERGY AND UTILITY SECTOR ELENA PREVITERA, SENIOR PARTNER AT REPLY, DETAILS THE COMPANY’S SNAM PARTNERSHIP AND HOW IT IS HELPING TO TRANSFORM THE ENERGY AND UTILITY SECTOR Globally, the energy sector is undergoing a profound transformation. The way that energy is being produced, distributed and sold is transitioning to complete decarbonisation to achieve climate neutrality by 2050. Elena Previtera, Senior Partner at Reply, explains that in order to meet these targets, “an unprecedented acceleration in public and private investments, aimed at supporting research and industrial-scale implementation of new technologies for the generation, distribution and efficient use of energy” is needed.
assets that best represent Snam’s attention to sustainability” says Previtera. TRADITIONAL BUSINESS: “From the introduction of drones and artificial intelligence to the design of cloud and edge computing solutions and the development of process automation solutions, Reply is assisting Snam’s traditional business lines and operational departments,” adds Previtera. CYBERSECURITY: “Reply supports Snam at all stages, from technological initiatives to organisational projects. Specifically, the design and implementation of a CyberSOC for continuous incident prevention, detection and response, as well as other solutions to prevent threats,” explains Previtera.
REPLY’S ROLE IN THE INDUSTRY TRANSFORMATION Reply combines its in-depth knowledge of the energy and utility market with its unique processes and distinctive ability to design, implement and manage application and technology solutions, in order to support the industry in its transformation. REPLY AND SNAM’S COLLABORATION Over the years, Reply has initiated and consolidated important collaborations with Snam, both in support of traditional business lines and in order to meet the needs of new businesses supporting the energy transition. ENERGY EFFICIENCY: “The platform dedicated to monitoring energy consumption and performance developed with Renovit, the group’s company operating in the energy transition business, is definitely one of the
Reflecting on Reply’s partnership with Snam, Previtera says: “It is fundamental for a company like Snam to be able to count on partners to guide the adoption of new digital solutions on a large scale and from an international perspective. “Reply’s value is the result of its strong process and technological specialisation and its capacity to create solutions oriented to meet the needs not only of the specific business but also to consider sustainability aspects.”
SNAM S.P.A
“ Despite Covid we succeeded in improving – organisationally and in terms of technological development” LORIS SPALTINI
EVP CORPORATE SERVICES, SNAM S.P.A
LORIS SPALTINI TITLE: EVP CORPORATE SERVICES LOCATION: ITALY Loris Spaltini has been Executive Vice President Corporate Services of Snam since November 2019. Prior to this, in May 2018, he joined Snam as Senior Vice President Supply Chain. With a degree in electrical engineering at Politecnico di Torino and a master’s degree in business management, Loris began his career in consulting, and then continued with positions in the automotive sector: CEO of Fiat Group Purchasing (JV between General Motors and Fiat), Chief of Purchasing worldwide for IVECO and CNH, General Manager of MV Augusta. Loris worked also in the steel sector as Purchasing and Supply Chain Director of ILVA S.p.A. Main experiences are related to business management, purchasing and industrial management, in international and highly complex contexts, in Italy, in Europe and abroad in North America, Brazil, China, India, Russia and North Africa.
EXECUTIVE BIO
SNAM S.P.A
CLAUDIO FARINA
GUIDO AMENDOLA
TITLE: EVP DIGITAL TRANSFORMATION & TECHNOLOGY
TITLE: SVP CORPORATE & GROUP SUPPLY CHAIN
LOCATION: ITALY
LOCATION: ITALY
Claudio Farina has been with Snam since 2017, and is Executive Vice President Digital Transformation & Technology leading technological roadmap, ICT and digital transformation. Previously, he was Head of CEO Office. Before Snam, he spent 9 years at Vodafone, as Head of Financial Planning & Analysis and Business Intelligence and Head of Strategy, leading spectrum auctions, reduction of digital divide, fibre strategy. From 2000 to 2008, he was Principal in BCG, leading 25 projects. In 1999 he was Researcher on technological innovation, at the German Institute of Economic Research. Passionate about innovation and start-ups, he is also an alumnus of Aspen Institute.
Guido Amendola has been with Snam since December 2018 and is Senior Vice President Corporate & Group Supply Chain, leading Procurement and Material Management. Previously, he held the role of Head Corporate & Group Procurement, managing Indirect and Operational Services spending of Snam Group. Before Snam, he spent 6 years in BNP Paribas, as Group CPO Italy, responsible for leading a Procurement Shared Services Hub. Prior to this, he was Supply Chain Director at PosteMobile and Head of Project Procurement at Siemens IT Solutions & Services. In 2010 he earned a Master's in Procurement at Supply Chain Management Institute in Munich adding this expertise to a post-graduate MBA and a degree in Economics.
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SNAM S.P.A
“ The ongoing transformation process comprises 55 staffed projects and planned investment of €500m” CLAUDIO FARINA
EXECUTIVE VP OF DIGITAL TRANSFORMATION & TECHNOLOGY, SNAM S.P.A
Snam has also rolled out an AI admin solution that automates the checking of vendor documents, including Supplier contracts. This saves huge amounts of time for staff in Snam’s Sourcing, Legal and Risk Management Teams. Another important figure in Snam’s transformation is Guido Amendola, Senior VP Corporate & Group Supply Chain. Amendola has broad-based procurement experience, having been Group CPO
at BNP Paribas bank in Italy and Supply Chain Director at telecoms company, PosteMobile. On sustainability, Amendola says that, in procurement in general, there needs to be a change from the old ways of working to “a new, more entrepreneurial approach where innovation becomes the norm”. This is a journey that starts on a consistent people’s consciousness about the new role of supply chain departments. To do this, he says, Snam launched the Supply Chain Academy, a programme that provides buyers, senior managers and directors with business-led strategic coaching around most important trends and topics in supply chain. And when it comes to sustainability, Amendola is passionate. He says that snam.it
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EVOLVING GAS TRANSPORTATION THROUGH AI & ADVANCED ANALYTICS
SNAM AND ENGINEERING CO - DESIGN THE FUTURE OF THE GAS SECTOR BY TRANSFORMING METER - READING PROCESSES
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SNAM S.P.A
Snam’s energy transformation model
“ It’s important that Stakeholders continue to be engaged and involved in every step of the way” GUIDO AMENDOLA
SENIOR VP OF CORPORATE & GROUP SUPPLY CHAIN, SNAM S.P.A
“helping drive the company’s net zero carbon programme has been exciting” – as has supporting Snam’s ongoing transition from fossil-based gas to sustainable energy sources. He believes that an important part of Snam’s sustainability drive is that stakeholders “continue to be engaged and involved every step of the way”. This is why Snam has launched a Change Management Initiative in its supply chain with an incubator team called ProcuLab which, says Amendola, “is an ideas booster composed of people from across our supply chain, who
The Snam Group is one of the world's leading energy infrastructure operators and is one of Italy's largest companies. It guarantees the security of the Country’s gas supply and is one of Europe’s key enablers in the energy transition movement. Snam operates in Austria, France, Greece, Italy and the UK, and has a presence also in Asia, the Middle East and the US. The Group has the largest natural gas transportation network in Europe, with over 41,000 km, as well as 3.5% of the world’s gas storage capacity. In recent years, Snam has begun to play a major role as an enabler of the energy transition, in line with EU net zero targets. Its 8.1bn euro strategic plan is expected to be complete by 2025, and it says it is on course to achieve carbon neutrality by 2040. The backbone of the energy transformation is to make its supply infrastructure ‘hydrogen ready’. It is also planning to support energy transition businesses such as biomethane from organic urban waste and agriculture and energy efficiency for buildings. The Group's business model is based on sustainable growth, transparency and the promotion of talent and diversity.
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SNAM S.P.A
100% HYDROGEN READY VALVES FOR A SUSTAINABLE WORLD Valvitalia is the first Italian Group in the production of valves for the Oil & Gas sector and has developed solutions for sustainable energy transition.
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Snam on course for net zero by 2040 Snam has set itself the goal of achieving carbon neutrality by 2040, with an intermediate target of reducing direct and indirect CO2 equivalent emissions (Scope 1 and Scope 2) of 50% by 2030. The Group is committed to making its network ready to transport fully decarbonised gas (biomethane and hydrogen) by 2050. In its 2021-2025 strategic plan, Snam foresees investments of 8.1bn euros for developing assets that meet hydrogen-ready standards, as well as net zero investments and speeding up of energy transition initiatives.
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have a balanced mix of gender, skills and experience”. He adds: “In ProcuLab there is no hierarchy, no rules. All that matters is valuable ideas. As well as generating ideas that continue to help us, I think it has also helped with morale, because it brought our people closer together when remote working during the pandemic”. Amendola also feels strongly that having the right mindset will continue to be the bedrock upon which the process of change is built. “Our culture is to challenge ourselves daily, so we can improve profitability and operating efficiency,” he says. A third Snam executive who has been important to its ongoing reinvention is Loris Spaltini, Executive VP of Corporate Services, who reports to Snam’s CEO. Spaltini joined the
company in 2018 and has prior experience in the steel and automotive sectors. Although the transition process has gone well, Spaltini admits it has been hugely challenging at times – not least during the height of the pandemic, when Spaltini and his team “had to guarantee supply continuity by supporting critical suppliers, as well as reinforcing procedures and supplierverification compliance.” They also had to ensure the security of Snam assets, including not only gas pipelines and plants but also the software applications that allow it to control the Italian gas network. “Our cyber team did an amazing job,” Spaltini says. As well as keeping operational matters on course at the height of Covid, Spaltini’s team were also tasked with ensuring its own people were taken care of. He said: “This meant not only developing internal health protocols to safeguard our workers’ safety but also ensuring they were getting the psychological support they needed.”
As well as providing personal support and medical care for its own people, Snam also took on responsibility for helping the wider Italian public, by donating much-needed medical equipment and supplies to healthcare providers across Italy. Now, as the pandemic is beginning to ease its grip, Snam’s supply chain is in a good place, says Spaltini. “Despite Covid, we’ve succeeded in continually improving, in terms of organisational and technological development, as well as in terms of the growth of our people and our attention to sustainability issues. In Europe, we are a fundamental player in the energy transition movement.” “Sustainability is no longer seen as an added benefit,” Spaltini adds. “It is a core operational and corporate goal. We have moved away from a ‘cost’ mindset, to a ‘value’ mindset – not just on sustainability, but in everything we do.”
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Piazza Santa Barbara 1 San Donato Milanese (MI) Italy 20097 T +39.023703.1 www.snam.it
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