Eni

Governance Information • Apr 5, 2019

Eni Corporate Governance and Shareholding Structure Report 2018

Mission

We are an energy company. We are working to build a future where everyone can access energy resources efficiently and sustainably. Our work is based on passion and innovation, on our unique strengths and skills, on the quality of our people and in recognising that diversity across all aspects of our operations and organisation is something to be cherished. We believe in the value of long term partnerships with the countries and communities where we operate.

Eni Corporate Governance and Shareholding Structure Report 2018*

Approved by the Board of Directors on March 14, 2019

(*) The Report is published in the "Governance" section of the Company website eni.com. The Italian text prevails over the English version.

Index

5 | ENI: PROFILE, STRUCTURE AND VALUES

Profile and structure	5
Principles and values. The Code of Ethics	7
Corporate Governance Policy	7
Responsible and sustainable approach	8
Eni's Corporate Governance initiatives	10
Corporate Governance Model	11

Duties 64 Composition and appointment 66 Professional, integrity and independence requirements: causes for ineligibility, incompatibility and forfeiture 71 Meetings and operational procedures 71 Internal Control and Risk Management System 73 Actors and duties 75 Board of Directors 75 Chairman of the Board of Directors 75 Board of Statutory Auditors 76 Control and Risk Committee 77

and Risk Management System 78 Internal Audit 79 Officer in charge of preparing financial reports (Financial Reporting Officer) 83 Watch Structure 84 Risk Committee 85 Compliance Committee 85 Integrated Compliance Department and other compliance units 86 Head of Integrated Risk Management 86 Eni Personnel and Management 87 Eni Regulatory System 87 The key features of the Eni Regulatory System 87 Management System Guideline "Corporate Governance for Eni companies" 88 Management System Guideline "Internal Control and Risk Management System" 89 Management System Guideline "Internal Audit" 92 Management System Guideline "Integrated Compliance" 94 Management System Guideline "Integrated Risk Management" 95

The Chief Executive Officer, acting as the Director in charge of the Internal Control

Main features of the Risk Management and Internal Control Systems applied to the financial

Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA

Tables:

Management System Guideline "Transactions involving the interests of Directors and Statutory Auditors

reporting process (MSG "Eni Internal Control System over Financial Reporting") 98 Model 231 101 Anti-Corruption Compliance Programme 102 Antitrust Compliance Programme 105 Privacy and Consumer Protection 105

and subsidiaries in Italy and abroad 106 Litigation Management Regulations 107

and transactions with related parties" 107 Management System Guideline "Market Information Abuse (Issuers)" 109 Audit firm 112 Control of the Court of Auditors 112 Relations with shareholders and the market 113

Board of Directors and Board Committees 115 Board of Statutory Auditors 115

1 5 | INFORMATION ON THE OWNERSHIP STRUCTURE

Share capital structure, significant shareholdings and shareholders' agreements	15
Shareholding limits and restrictions on voting rights	17
Securities that confer special rights	17
Special powers of the State	17
Shares and participating financial instruments referred to in Law No. 266 of December 23, 2005	18
Material agreements that would become effective, be modified or extinguished in the event of a change of control of Eni	18
Agreements between the Company and Directors which envisage indemnities in the event of resignation or dismissal without just cause, or if their employment contract should terminate as the result of a takeover bid	19
Powers to Directors to increase share capital, issue participatory debt financial instruments and authorisationto purchase treasury shares	19

2 0 | CORPORATE GOVERNANCE INFORMATION

Compliance with the Corporate Governance Code for Listed Companies	20
Policy for diversity and gender balance on corporate Boards	28
Shareholders' Meeting and rights	30
Responsibilities of the Shareholders' Meeting	30
Methods of calling and participating in the Shareholders' Meeting	30
Board of Directors	34
Composition	35
Appointment	40
Succession plan for Executive Director and key personnel	42
Independence requirements	42
Integrity requirements, reasons for ineligibility and incompatibility	44
Policy of the Board of Directors on the maximum number of offices held by its members in other companies	45
Powers and responsibilities	46
Meetings and running of meetings	49
Board Secretary and Corporate Governance Counsel	51
Board Review and advice for shareholders on the composition of the Board of Directors	52
Board Induction	55
Remuneration Report	55
Board Committees	55
Control and Risk Committee	57
Remuneration Committee	60
Nomination Committee	62
Sustainability and Scenarios Committee	63
Chief Operating Officers	64
Board of Statutory Auditors	64

Duties	64
Composition and appointment	66
Professional, integrity and independence requirements: causes for ineligibility, incompatibility and forfeiture	71
Meetings and operational procedures	71
Internal Control and Risk Management System	73
Actors and duties	75
Board of Directors	75
Chairman of the Board of Directors	75
Board of Statutory Auditors	76
Control and Risk Committee	77
The Chief Executive Officer, acting as the Director in charge of the Internal Control and Risk Management System	78
Internal Audit	79
Officer in charge of preparing financial reports (Financial Reporting Officer)	83
Watch Structure	84
Risk Committee	85
Compliance Committee	85
Integrated Compliance Department and other compliance units	86
Head of Integrated Risk Management	86
Eni Personnel and Management	87
Eni Regulatory System	87
The key features of the Eni Regulatory System	87
Management System Guideline "Corporate Governance for Eni companies"	88
Management System Guideline "Internal Control and Risk Management System"	89
Management System Guideline "Internal Audit"	92
Management System Guideline "Integrated Compliance"	94
Management System Guideline "Integrated Risk Management"	95
Main features of the Risk Management and Internal Control Systems applied to the financial reporting process (MSG "Eni Internal Control System over Financial Reporting")	98
Model 231	101
Anti-Corruption Compliance Programme	102
Antitrust Compliance Programme	105
Privacy and Consumer Protection	105
Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad	106
Litigation Management Regulations	107
Management System Guideline "Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties"	107
Management System Guideline "Market Information Abuse (Issuers)"	109
Audit firm	112
Control of the Court of Auditors	112
Relations with shareholders and the market	113
Tables:
Board of Directors and Board Committees	115
Board of Statutory Auditors	115

5 | ENI: PROFILE, STRUCTURE AND VALUES

Index

1 5 | INFORMATION ON THE OWNERSHIP STRUCTURE

Profile and structure 5 Principles and values. The Code of Ethics 7 Corporate Governance Policy 7 Responsible and sustainable approach 8 Eni's Corporate Governance initiatives 10 Corporate Governance Model 11

Share capital structure, significant shareholdings and shareholders' agreements 15 Shareholding limits and restrictions on voting rights 17 Securities that confer special rights 17 Special powers of the State 17 Shares and participating financial instruments referred to in Law No. 266 of December 23, 2005 18 Material agreements that would become effective, be modified or extinguished in the event of a change of control of Eni 18

or dismissal without just cause, or if their employment contract should terminate as the result of a takeover bid 19

and authorisationto purchase treasury shares 19

Compliance with the Corporate Governance Code for Listed Companies 20 Policy for diversity and gender balance on corporate Boards 28 Shareholders' Meeting and rights 30 Responsibilities of the Shareholders' Meeting 30 Methods of calling and participating in the Shareholders' Meeting 30 Board of Directors 34 Composition 35 Appointment 40 Succession plan for Executive Director and key personnel 42 Independence requirements 42 Integrity requirements, reasons for ineligibility and incompatibility 44 Policy of the Board of Directors on the maximum number of offices held by its members in other companies 45 Powers and responsibilities 46 Meetings and running of meetings 49 Board Secretary and Corporate Governance Counsel 51 Board Review and advice for shareholders on the composition of the Board of Directors 52 Board Induction 55 Remuneration Report 55 Board Committees 55 Control and Risk Committee 57 Remuneration Committee 60 Nomination Committee 62 Sustainability and Scenarios Committee 63 Chief Operating Officers 64 Board of Statutory Auditors 64

Agreements between the Company and Directors which envisage indemnities in the event of resignation

Powers to Directors to increase share capital, issue participatory debt financial instruments

2 0 | CORPORATE GOVERNANCE INFORMATION

Corporate Governance and Shareholding Structure Report 2018

This Report, approved by the Board of Directors of Eni SpA on March 14, 2019, provides a broad and comprehensive overview of the Corporate Governance system adopted by Eni SpA (hereinafter referred to as "Eni" or the "Company").

In compliance with the applicable legal1 and regulatory requirements, and taking account of the guidelines and recommendations of Borsa Italiana SpA (hereinafter "Borsa Italiana") this Report provides information on Eni's ownership structure and on its compliance with the Corporate Governance Code for listed companies2 , as most recently updated in July 2018 ("Corporate Governance Code"), explaining the choices made in implementing the corporate governance principles and on the corporate governance practices actually instituted.

The Corporate Governance Code is available to the public on the Corporate Governance Committee's website as well as3 in the Governance section of Eni's website (www.eni.com) with a description of the governance solutions adopted by Eni.

Furthermore, the Management Report, which is a part of the 2018 Annual Report4 , contains a section entitled "Governance", which describes Eni's Corporate Governance system with an integrated view of the creation of sustainable value through business support.

Finally, for a more detailed treatment of compensation matters, please refer to the Remuneration Report5 , approved by the Board on March 14, 2019 and published simultaneously with this Report. The information contained in this Report refers to 2018 and, with respect to certain issues, is up-todate as of the date of the meeting of the Board of Directors called to approve it.

This Report, which is published in the "Governance" section of the Company's website www.eni.com, consists of three section: the first describes Eni's profile, structure and values; the second focuses on information on the ownership structure; and the third analyses and provides information on corporate governance, specifically compliance with the Corporate Governance Code, on the main features of the Internal Control and Risk Management System, including with regard to the financial reporting process and, more generally, the primary governance practices followed.

⁽¹⁾ Art. 123-bis of Legislative Decree No. 58/1998 (Consolidated Law on Financial Intermediation).

⁽²⁾ The Code was produced by the Corporate Governance Committee sponsored by Abi, Ania, Assonime, Assogestioni, Borsa Italiana and Confindustria. More information on the various editions of the Code and the composition of the Committee can be found on Borsa Italiana's website.

⁽³⁾ Available at: http://www.borsaitaliana.it/comitato-corporate-governance/codice/codice.en.htm

⁽⁴⁾ Available at the "Publications" section of the Company's website.

⁽⁵⁾ This is the Report envisaged by Art. 123-ter of the Consolidated Law on Financial Intermediation, published on Eni website with this

Report in the manner required by Art. 84-quater of Consob Resolution No. 11971 of May 14, 1999, as amended ("Consob Issuers' Regulation").

ENI: PROFILE, STRUCTURE AND VALUES

Profile and structure

Eni is a company that issues shares listed on the electronic stock exchange (Mercato Telematico Azionario) operated by Borsa Italiana SpA and securities traded on the New York Stock Exchange (NYSE) in the United States.

Eni is an energy company with operations in 67 Countries and a workforce of 31,701 (10,699 abroad)6 , the Company operates in oil, natural gas, and energy in general.

Starting from May 28, 2014, the Board redefined the Company's organisational structure, replacing the divisional model with an integrated operational model built around business lines, each specialising in a business and responsible for achieving performance and operating targets for its segment, as well as achieving excellence in key competencies.

More specifically, Eni operates the following:

• - business lines
  • (i) Exploration responsible for the management of exploration portfolio, strategic exploration studies, exploration and delineation projects and geological and geophysical studies and specialist services;
  • (ii) Development, Operations & Technology responsible for carrying out industrial asset development projects and operations technical support, managing R&D activities and upstream procurement;
  • (iii) Energy Solutions responsible for the development of the renewable energy business: new projects, asset management and sales;
  • (iv) Upstream responsible for business development activities, management of upstream activities directly carried out and monitoring of those not directly carried out;
  • (v) Gas & LNG Marketing and Power responsible for managing the Gas, LNG & Power portfolio, commercial development of gas, power and LNG equity projects, sale of Gas, LNG and Power to large customers, management of commodity price risk, trading, oil and gas transport also through pipelines, energy generation operations, regulatory issues;
  • (vi) Refining & Marketing responsible for the supply, refining, production, distribution and sale of petroleum products and lubricants, licensing out, procurement for industrial activities and logistics in the downstream sector, as well as for environmental reclamation (acting through the company Syndial);

- companies

• Eni gas e luce7 , for sales of gas, electricity and services to retail and business customers in Italy and Europe;
• Versalis, for the production and sale of petrochemical products (basic chemistry, polyethylene, styrenes, elastomers), green chemistry and sale of licenses on technologies and know-how.

The business lines are assisted by business support functions reporting to the Chief Executive Officer, whose services are centralised to ensure quality and efficiency. These functions include: (i) the units that report to the Chief Financial Officer, the Chief Services & Stakeholder Relations Officer and the Chief Digital Officer8 ; (ii) Corporate Affairs and Governance, Legal Affairs, International Affairs, External Communication, Integrated Compliance, Commercial Negotiations9 Departments and Integrated Risk Management unit.

Lastly, the Head of the Internal Audit Department (who oversees checks, analysis, assessments and recommendations concerning the design and operation of Eni's internal control and risk management system) and the Board Secretary and Corporate Governance Counsel (Company Secretary) report to the Board of Directors and, on its behalf, to the Chairman.

The chart below shows Eni's activities10.

• (7) Since July 1st, 2017.
• (8) Since September 18, 2018.
• (9) Since January 1st, 2019.
• (10) For more information, please refer to the "Company" section of the Company's website and the Annual Report.

Eni's mission

We are an energy company. We are working to build a future where everyone can access energy resources efficiently and sustainably. Our work is based on passion and innovation, on our unique strengths and skills, on the quality of our people and in recognising that diversity across all aspects of our operations and organisation is something to be cherished. We believe in the value of long-term partnerships with the Countries and communities where we operate

⁽⁶⁾ Figures at December 31, 2018.

Activities

Eni engages in oil and natural gas exploration, field development and production, mainly in Italy, Algeria, Angola, Congo, the United Arab Emirates, Egypt, Ghana, Libya, Mozambique, Nigeria, Norway, Oman, Kazakhstan, the UK, the United States, overall in 43 Countries.

Eni sells gas, electricity, LNG and oil products in the European and extra-European markets, also leveraging on trading activities. Products availability is ensured by oil and gas production in the upstream business, long-term gas supply contracts, CCGT power plants, Eni's refinery system as well by Versalis' chemical plants. The supply of commodities is optimized through trading activity. Integrated business units enable the company to capture synergies in operations and reach cost efficiencies.

At December 31, 2018, Eni controlled 213 companies in Italy and abroad11.

Eni's values are set forth in the Eni Code of Ethics

Integrity and transparency are the principles that guide Eni's action in formulating a management and control structure that is suited to its size, complexity and operating structure, in adopting an effective internal control and risk management system, and in communicating with shareholders and other stakeholders, also by reviewing and updating the information on its website.

These values are set forth in the Eni Code of Ethics, approved by the Board of Directors on March 14, 2008, which replaces the previous 1998 Code of Conduct. The Code of Ethics was most recently updated on November 23, 2017.

Directors, Statutory Auditors, management and all Eni's employees, as well as those who operate in Italy or abroad to achieve Eni's objectives, are required to uphold, in the context of their own functions and duties, the principles set out in the Code of Ethics.

The Code contains concrete rules of behaviour, so that the principles contained therein form a practical guide for corporate operations.

For that purpose, the Code of Ethics has been translated into 21 languages. It has been distributed widely and is explained through a range of initiatives, including special training courses.

The Code contains unavoidable general principles and is an integral part of Model 231 (Legislative Decree No. 231/2001)12, as well as a key element of the anti-corruption framework13. The synergies between the Code of Ethics and the Model are underlined by the assignment to the Eni SpA Watch Structure – established by Model 231 – of the function of Guarantor of the Code of Ethics, with the duty of promoting and verifying its implementation.

The Guarantor of the Code of Ethics presents a report every six months on the implementation of the Code and any updating needed to the Control and Risk Committee, to the Board of Statutory Auditors and to the Chairman and Chief Executive Officer (CEO) of Eni, who in turn report to the Board14.

The Code of Ethics applies to all direct or indirect subsidiaries, both in Italy and abroad. Eni SpA Watch Structure has the function of Guarantor of the Code of Ethics for all companies of the Group.

The representatives designated by Eni on the corporate bodies of associated companies, consortia and joint ventures promote the principles and contents of the Code within their respective spheres of responsibility.

Corporate Governance Policy

In the context of Eni's Regulatory System15, on July 28, 2010 the Board of Directors defined the inalienable principles of Eni's Corporate Governance system, issuing the Corporate Governance Policy in which, identifying integrity and transparency as the founding principles of its system, it stated its commitment to:

• adopting measures that ensure correct handling of any situation that may involve a conflict of interest, even potential, while safeguarding the rights of and relations with its stakeholders and providing complete, timely, clear and correct information, ensuring shareholders have equal access to information;
• pursuing the best Corporate Governance practices, including through comparison with the best Italian and foreign governance models and, in particular, with the principles issued by the most representative institutions and associations;

(15) For more information on Eni's Regulatory System, please refer to the "Internal Control and Risk Management System" section of this Report.

The Board defined the inalienable principles of Eni's Corporate Governance system

Eni

7

Corporate Governance and Shareholding Structure Report

2018

⁽¹²⁾ For more information, please refer to the section on "Model 231" of this Report.

⁽¹³⁾ For more information, please refer to the section on the "Anti-Corruption Compliance Programme" of this Report.

⁽¹⁴⁾ The report is submitted together with that required from the Watch Structure.

• promoting its Corporate Governance principles outside by encouraging observations and introducing new ideas, in particular through participation in institutional and sector working groups and by promoting relevant initiatives;
• promoting and maintaining an adequate, effective and efficient Internal Control and Risk Management System.

In performing its management and coordination activities, Eni acts in accordance with the managerial independence of the individual companies, in particular of the listed companies and those subject to special regulations, and respects the interests of other shareholders, the confidentiality obligations that safeguard the commercial interests of the companies involved and, regarding foreign companies, local regulations.

More specifically, among the aims pursued, actions designed to ensure an adequate and effective internal control and risk management system are of fundamental importance – both overall and in its main components – in addition to compliance with the rules the Company is subject to in its role as parent company.

Responsible and sustainable approach

A responsible and sustainable approach represents Eni's methods of operating under a logic of value creation over the medium and long-term for the Company itself and for all stakeholders, combining financial strength with social and environmental sustainability.

This approach is fundamental for operating in the complex current environment and for responding to the most crucial challenge of the energy sector: the transition to a low-carbon future and access to resources for a growing world population.

The 17 Sustainable Development Goals (SDGs - Sustainable Development Goals), promoted by the Agenda 2030 of the United Nations, are a reference framework for Eni to direct activities and seize new business opportunities, also in partnership with various national and international organizations, share knowledge and resources and contribute to the achievement of development goals.

Eni has started a decarbonisation process by adopting an approach that is strongly focused on operational excellence, research innovation, cooperation for Countries development to promote access to energy resources in a way that is efficient and sustainable for all. This is possible thanks to the central role of people, passion and leveraging diversity as a resource, integrity in managing its business following strict financial rules, the highest ethical principles, respect for and promotion of human rights, and synergies deriving from integration between financial and non-financial aspects in all corporate decisions and processes.

In this context, the Board of Directors of Eni plays a central role in the definition of sustainability policies and strategies, acting on a proposal of the Chief Executive Officer, the definition of annual, four-year and long-term targets, shared between units and subsidiaries, also verifying the associated results, which are also presented to shareholders at the Shareholders' Meeting. The role of the Board of Directors

One crucial issue is the sustainability of our business in the long-term and the associated challenges connected with the energy transition and possible decarbonisation scenarios. In this area, the Board of Directors, on the basis of a proposal of the Chief Executive Officer, examines and/or approves strategic initiatives and objectives, the portfolio of Eni top risks, including climate change, the Short-Term Incentive Plan16, with objectives linked to the reduction of GHG emissions for the Chief Executive Officer and management, relevant projects and their progress on a six-monthly basis, with sensitivity to carbon pricing and strategic agreements.

The Chief Executive Officer also chairs the Steering Committee of the "Climate Change Program", an interfunctional work group composed of members of Eni's top management that assists the CEO in drawing up the short, medium and long term decarbonization strategy and constantly monitors its progress.

(16) For more information, please refer to the Remuneration report, published on Eni website.

Eni operates under a logic of value creation over the medium and long-term for the Company itself and for all stakeholders

In performing its duties in this field, the Board of Directors is supported by a Board Committee, called the Sustainability and Scenarios Committee, which was established in 2014 by the Board. Among its tasks, the Committee periodically examines issues concerning the integration of strategy, development scenarios and the long-term sustainability of the business, analysing scenarios for the preparation of the strategic plan.

In 2018, in all its meetings, the Sustainability and Scenarios Committee evaluated issues concerning climate change, among which the decarbonisation strategy, energy scenarios, renewable energies, research and development for energy transition, forestry and the climate partnership17, gas sales in domestic markets and issues related to biodiversity.

Since the second part of 2017, the Board of Directors and the Chief Executive Officer have drawn on the support of an Advisory Board, presided over by Director Fabrizio Pagani and made up of a number of international experts18, which in 2018 focused on analysing the main geopolitical, technological and market trends, including issues related to the decarbonisation process.

The strategic objectives, including those for decarbonisation, are specified in the objectives for company management, including the Chief Executive Officer19 and managers with strategic responsibilities.

In 2018, Eni also assured its contribution to the "Climate Governance" initiative20 of the World Economic Forum (WEF), also with the involvement of Eni's Board of Directors.

Thanks to its commitment in the decarbonisation strategy, Eni was confirmed, with a score of A-, as leader in the CDP 2018, the independent rating that evaluates the actions and strategies of the major companies in the world in response to climate change. Moreover, Transition Pathway Initiative (TPI21) also confirmed the quality of Eni climate-related governance, strategy and risk management, considering the company as best practice in the Oil & Gas sector.

On the subject of Human Rights, in December 2018 the Board of Directors of Eni SpA approved the Eni Statement on respect for Human Rights. This document renews the previously expressed corporate commitment on the subject, aligning it with the main international standards on Human Rights and Business, starting from the UN Guiding Principles, also highlighting the priority areas on which this commitment is concentrated.

The Statement was prepared by the interfunctional Working Group "Human Rights and Business", created following the 2016 event "Raising awareness on human rights in Eni's activities", chaired by the CEO22 addressing the members of the Board of Directors, the Board of Statutory Auditors and the management of Eni with the aim of raising attention and awareness on the subject of business and human rights. This Working Group, which involved over 40 company units in 2018, finalised an action plan aimed at ensuring the full integration of the protection of human rights in the corporate processes and fully implementing the commitment taken at the end of the year with the aforementioned Eni Statement on respect for human rights.

During 2018, the Sustainability and Scenarios Committee also examined several aspects directly or indirectly concerning human rights23, in particular, the aforementioned Eni Statement on the respect of human rights and the analysis of results achieved by Eni in the

(17) For more information, please refer to the "Sustainability and Scenarios Committee" section in this Report.

(18) The other members of the Advisory Board are: Ian Bremmer; Christiana Figueres; Philip Lambert; Davide Tabarelli. For more

information, please refer to the "Governance" section in the Company's website www.eni.com. (19) For more information, please refer to the 2019 Remuneration Report available on Eni's website www.eni.com.

(20) The initiative aims to increase the level of Board awareness on climate-related issues, also following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

(21) Initiative born at the beginning of 2017 driven by asset owners and supported by asset managers, aimed at assessing the preparation of companies for the energy transition in each industrial sector.

Eni Statement on respect for Human Rights

9

⁽²²⁾ Event attended by experts from the Danish Institute for Human Rights, Amnesty International, Institute for Human Rights and Business, University of Notre Dame (Indiana, United States) and IPIECA.

⁽²³⁾ With this in mind, on May 9, 2017 the Board of Directors of Eni updated the Rules of the Sustainability and Scenarios Committee, explicitly including Human Rights among the sustainability areas on which the Committee performs proposal and consultative functions towards the Board of Directors.

second edition of the Corporate Human Rights Benchmark24 where Eni ranked as the highest rated Oil & Gas company.

Finally, on this issue, Eni has further strengthened the provision of incentives linked to performance on Human Rights within the objectives assigned to different managerial levels, in order to ensure the implementation of Eni's strategies and commitments in this area.

Furthermore, Eni was reconfirmed for the twelfth consecutive year in the FTSE4Good, based on the semi-annual review of December 2018.

In order to emphasize the contribution to creating value for the Company and stakeholders stemming from operating in a sustainable manner, the sustainability targets and results, as well as all the main activities that determine the same, are communicated in the Annual Report, as provided for under the integrated reporting framework supported by the International Integrated Reporting Council (IIRC). With regard to stakeholders, the mapping and monitoring system for stakeholders, in force since 2018 ("Stakeholder Management System"), contributes to support, with mapping and analysis, the risk and reputation assessments on Countries with operational presence presented quarterly to the Board by the competent functions. In addition, since 2016, the key performance indicators ("KPI") for sustainability have also been disclosed in the press releases announcing Group performance for the second quarter and the preliminary annual results.

During 2018, continuing the process of integrating financial and non-financial disclosure in the Annual Report (so-called integrated reporting), since that referred to 2017 the Management Report in the Annual Report has been supplemented with a specific section entitled "Consolidated Non-Financial Information" (hereinafter the NFS) as provided for under Legislative Decree No. 254/201625. The non-financial information presented in that statement can also be provided through references to other reports required under other provisions of law, including this Report (with reference to specific sections). The NFS, which is prepared on the basis of the Global Reporting Initiative (GRI) reporting standard, was approved by the Eni Board of Directors and audited by the audit firm engaged to perform the statutory audit of Eni's financial statements (EY), in accordance with the provisions of law and the appropriate professional standards (ISAE 3000).

Eni distinguished itself in the panorama of large companies, winning the 2018 Financial Statements Oscar with the 2017 Annual Financial Report, for having focused on transparency and greater integration between financial and non-financial information and the high quality of disclosure, in particular corporate governance and sustainability.

Furthermore, already since 2017, Eni has included all the commitments relating to the SDGs in the voluntary report called "Eni for", which is also presented at the Shareholders' Meeting and published on the Eni website, and publishes an "ad hoc" document on climate, organized on the basis of the recommendations of the Task Force on Climate-related Financial Disclosure-TCFD of the Financial Stability Board to represent commitments made with a view to sustainable development in a detailed and transparent manner.

Eni's Corporate Governance initiatives

In line with the principles of its Corporate Governance Policy, adopted by the Board of Directors on July 28, 2010, Eni is committed to creating a corporate governance system that is inspired by excellence, in open dialogue with the market.

Accordingly, the Company has pursued a number of initiatives for improving its own system and that of the nation, focusing heavily on communication with its stakeholders and demonstrating an ongoing commitment to helping shareholders exercise their rights effectively.

⁽²⁴⁾ The Corporate Human Rights Benchmark is an initiative in collaboration between investors and civil society organizations aimed at creating the first public benchmark for assessing the performance of companies in the field of human rights. The Benchmark compares the largest companies from year to year, taking into account the policies, governance, processes and practices adopted to systematize their approach to human rights and how they respond to allegations of infringement.

⁽²⁵⁾ For more information, please refer to 2018 Annual Report published on Eni's website.

More specifically, in 2011 Eni provided a contribution to the debate on the corporate governance of listed Italian companies, based on the analysis of foreign best practices that are not yet established in the national system and to which Eni pays particular attention due to the international scope of its business. The results of the analysis, filtered through the Company's experience, led to the drafting of 35 proposals (regulatory and self-discipline) to improve the efficiency of the Italian system. A large portion of the proposals was incorporated as recommendations or comments in the 2011 edition of the Corporate Governance Code. Following this initiative, in 2018 the competent corporate functions, also with the support of an external consultant, carried out some in-depth analysis on aspects of possible interest with a view to the continuous improvement of Eni's governance model.

Moreover in January 2018, given the need to keep an ongoing dialogue with the market on corporate governance issues, continuing the path taken since 2013, Eni organized a Corporate Governance Roadshow of the Chairman in London with leading institutional investors to present, among other things, Eni main initiatives, with a focus on the internal control and risk management system, on the Advisory Board and on the Company's commitment, starting from the Board, to further strengthen the culture of compliance and on climate change.

Regarding corporate governance initiatives, as well as the adoption governance solutions that go beyond the recommendations of the Corporate Governance Code, will be described in more detail further on in this Report.

Corporate Governance Model

The Corporate Governance Model of Eni SpA

Corporate Governance structure is based on the traditional Italian model that – respecting the duties of the Shareholders' Meeting – assigns the strategic management of the Company to the Board of Directors, the heart of the organisational system, and supervisory functions to the Board of Statutory Auditors. Eni adopts the traditional management and control model

The statutory audit is carried out by an Audit Firm appointed by the Shareholders' Meeting.

In accordance with the By-laws, the Board of Directors appointed a Chief Executive Officer to manage the Company, while reserving decisions on certain issues exclusively to itself. The CEO is therefore the main person responsible for the management of the company, apart from those tasks reserved to the Board.	The Chief Executive Officer
The Board of Directors gave its Chairman a major role in internal controls26. The Board also decided that the Chairman will, in accordance with the By-laws, be legal representative of the Company, responsible for managing institutional relationships in Italy, together with the CEO.	The Chairman
The model adopted therefore makes a clear separation between the functions of the Chairman and those of the CEO, both of whom are empowered to represent the Company, in accordance with Art. 25 of the By-laws.
The Board of Directors has created four internal Committees having consulting and advisory functions: the Control and Risk Committee, the Remuneration Committee, the Nomination Committee and the Sustainability and Scenarios Committee. These Committees report to the Board at every meeting, through their respective Chairmen, on the most significant matters that they have addressed27.	The Committees
Other key players in the Eni Governance model include:
- the Officer in charge of preparing financial reports (Financial Reporting Officer), a position filled by the Chief Financial Officer of the Company;	The Financial Reporting Officer
- the Watch Structure, appointed by the Board and composed of four internal members and three external members, including the Chairman.	Eni Watch Structure

(26) For more information, please see the section devoted to the Chairman in the chapter "Internal Control and Risk Management System" of this Report.

(27) For more information, please see the section "Board Committees" of this Report.

The Corporate Governance Roadshow of the Chairman

For more information on the Financial Reporting Officer and the Watch Structure, please see the specific sections of this Report.

The Board of Statutory Auditors

Certain organisational and managerial decisions highlighted in this Report, including the designation of the Board of Statutory Auditors as the Audit Committee28, were made to achieve compliance with US regulations, to which the Company is subject as a NYSE-listed company.

The following chart represents the Company's governance structure as at March 14, 2019:

b Member appointed from the majority list non-executive

and independent pursuant to law. c Member appointed from the minority list and independent pursuant

to law and Corporate Governance Code. d Member appointed from the majority list and independent pursuant

to law and Corporate Governance Code. e Member appointed from the majority list, non-executive

and non independent.

f External member. g Executive Vice President Integrated Compliance. i Senior Executive Vice President Legal Aairs. Until December 31, 2018 Marco Bollini. l Executive Vice President Labour Law and Dispute.

* The Advisory Board is chaired by Director Fabrizio Pagani and composed of leading international energy experts: Ian Bremmer, Christiana Figueres, Philip Lambert and Davide Tabarelli.

** The following are Alternate Auditors: Stefania Bettoni - Member appointed from the majority list. Claudia Mezzabotta - Member appointed from the minority list.

*** Also Senior Executive Vice President Corporate Aairs and Governance.

**** Adolfo Teobaldo De Girolamo until February 28, 2019.

Eni's organisational management structure is divided into "business lines" and "business support functions" that report directly to the CEO of Eni SpA.

The following is a chart setting out the current macro-organizational structure of Eni SpA:

(a) The Board Secretary and Corporate Governance Counsel (Company Secretary) reports hierarchically and functionally to the Board of Directors and, on its behalf, to the Chairman. (b) The Senior Executive Vice President Internal Audit reports hierarchically to the Board of Directors and, on its behalf, to the Chairman, without prejudice to its functional reporting to the Control and Risk Committee and to the CEO in his capacity as Director in charge of the Internal Control and Risk Management System.

(c) In oce since January 1st, 2019.

(d) From January 1st, 2019. Until December 31, 2018, Senior Executive Vice President Legal Aairs.

(e) Since September 18, 2018.

The main Management Committees

Management Committee

The Management Committee29, presided over by the CEO of Eni, is composed of the: Chief Exploration Officer, Chief Development, Operations & Technology Officer, Chief Upstream Officer, Chief Gas & LNG Marketing and Power Officer, Chief Refining & Marketing Officer, Executive Vice President Energy Solutions, Chief Financial Officer, Chief Services & Stakeholder Relations Officer, Chief Digital Officer, Senior Executive Vice President Legal Affairs, Senior Executive Vice President Internal Audit, Senior Executive Vice President Corporate Affairs and Governance, Senior Executive Vice President Commercial Negotiations, Executive Vice President External Communication, Executive Vice President International Affairs, Executive Vice President Integrated Compliance, Executive Vice President Integrated Risk Management.

The Management Committee

(29) The composition of the Management Committee is current as of December 21, 2018 effective as from January 1st, 2019. The Management Committee also includes the CEOs of certain Eni's subsidiaries.

The Management Committee, which provides advice and support to the CEO, meets on monthly basis and, normally, prior to the meetings of the Board of Directors, and whenever the CEO of Eni SpA believes it necessary, to consider the issues he indicates, including those that may be proposed by Committee members, other persons reporting to him or by the CEOs of the Group companies. The Chairman of the Board is invited to attend Management Committee meetings. Other persons may also be invited to attend those meetings where their duties relate to items on the agenda. The Senior Executive Vice President Corporate Affairs and Governance serves as the Management Committee's Secretary. Compliance Committee and Risk Committee Other managerial committees in addition to the Management Committee have been formed. Those with responsibilities involving corporate governance, particularly control, include the Risk Committee and the Compliance Committee, described in more detail herein. The Risk Committee30 is presided over by the CEO of Eni SpA and has the same composition as the Management Committee. The Risk Committee provides advice to the CEO on the major risks facing Eni and, specifically, reviews and offers its opinion on the main results of the Integrated Risk Management process. The Chairman of the Board of Directors of Eni SpA is also invited to attend the meetings. Other persons may also be invited to attend those meetings where their duties relate to items on the agenda. The Executive Vice President Integrated Risk Management serves as the Committee's Secretary. The Compliance Committee31 is composed of the Senior Executive Vice President Corporate Affairs and Governance, Senior Executive Vice President Internal Audit, Executive Vice President Integrated Compliance, Executive Vice President Accounting and Financial Statements, Executive Vice President Human Resources and Organization. The Compliance Committee, as a whole, is responsible for: - identifying the process owners for each compliance and governance matter and suggesting them to the CEO; - approve the areas of compliance and identify the persons responsible, submitting to the Chief Executive Officer any proposal to appoint new Compliance Process Owners and validate the compliance and governance models; - reporting to the CEO on the need to examine any new issues, suggesting a process owner and, if necessary, a working group; - in the event that the Management System Guidelines for compliance and governance are updated, providing its opinion on the formal and substantive aspects of the changes made; - assess beforehand, in its role as verification committee, the Management System Guidelines for compliance and governance. In addition, the Compliance Committee receives, for information purposes, the Integrated Compliance Report and the related update. Corporate Governance Model for Eni companies The Board of Directors of Eni, consistent with its duties, established the corporate governance system and rules for Eni's Italian and foreign subsidiaries, and the criteria and procedures for appointing members of the boards of investee companies, which are set out in specific internal rules. For more information, see the section of this Report on the Management System Guideline "Corporate The Risk Committee The Compliance Committee MSG Corporate Governance for Eni companies

(31) The composition of the Compliance Committee is current as of September 21, 2016.

Governance for Eni companies".

⁽³⁰⁾ The composition of the Risk Committee is current as of December 21, 2018 effective as from January 1st, 2019.

INFORMATION ON THE OWNERSHIP STRUCTURE32

Share capital structure, significant shareholdings and shareholders' agreements

Eni's share capital is made up of ordinary registered shares. The shares are indivisible and each one grants the holder the right to one vote. Holders of Eni shares have the right to vote in the Company's ordinary and extraordinary Shareholders' Meetings, and exercise the corporate and property rights given them under the laws in force, subject to the limits specified by the latter and by the Company's By-laws. At December 31, 2018 the Company's share capital amounted to €4,005,358,876 – fully paid-up – and comprises 3,634,185,330 ordinary shares without par value.

The Company's shares have been listed on the electronic stock exchange (Mercato Telematico Azionario) managed by Borsa Italiana SpA since November 1995. Also in 1995, Eni issued an American Depositary Receipts (ADR) programme for the US market. An ADR consists of a share certificate representing foreign company shares traded on stock exchanges of the United States. Each Eni ADR represents two ordinary shares and is traded on the New York Stock Exchange33.

Eni is therefore subject to the control of the Ministry of the Economy and Finance, which has enough votes to exercise a dominant influence in the ordinary Shareholders' Meeting of the Company, through stakes held directly in the Company (with 4.34%) and indirectly through Cassa Depositi e Prestiti SpA (CDP SpA), a company controlled by the Ministry (with 25.76%).

But Eni is not subject to the management and coordination of the Ministry of the Economy and Finance34 or of CDP SpA, pursuant to Art. 2497 of the Italian Civil Code, nor is the Company aware of any agreements between shareholders, pursuant to Art. 122 of the Consolidated Law on Financial Intermediation.

The following table shows the percentage of Eni's share capital owned, at the date of approval of this Report, directly or indirectly by shareholders or persons whose declared holdings exceed a major holding threshold pursuant to Art. 120 of the Consolidated Law on Financial Intermediation and to Consob Issuers' Regulation. This threshold is updated based on information available to the Company.

Controlling shareholders Number of shares % of total ordinary shares Ministry of the Economy and Finance 157,552,137 4.34 CDP SpA 936,179,478 25.76 Total 1,093,731,615 30.10

Shareholders with significant investments

32

No changes had been reported at March 14, 2019.

The following is a graphical representation of the share capital structure and the distribution of shares by amount and geographical area based on the registered share owners who received the interim dividend paid for 2018 made by intermediaries (ex-dividend date of September 24, 2018 – record date of September 25, 2018 – payment date of September 26, 2018).

(32) Information on the shareholding structure is provided in accordance with the provisions of Art. 123-bis, first paragraph, of the Consolidated Law on Financial Intermediation; with reference to:

• the mechanism for the exercise of voting rights in any employee share scheme where voting rights are not exercised directly by the employees, as specified in letter e) of the above-mentioned regulation; please note that the Company does not provide employee share schemes. As to the long-term share-based incentive plan, denominated Long-Term Incentive Plan 2017-2019, please refer to the Eni 2019 Remuneration Report, published with this Report, and the Informational document on the plan published pursuant to law and available at www.eni.com;

• rules that apply to the appointment and replacement of Directors, as specified in letter l) of the above-mentioned regulation, please refer to the paragraph "Appointment", of the section "Board of Directors";

• amendments to the By-laws, as specified in letter l) of the above-mentioned regulation; please refer to the paragraph, "Shareholders' Meeting and rights".

(33) For more information on the ADR program, please refer to the Investors section of Eni website.

(34) Art. 19, paragraph 6, of Italian Decree-law No. 78/2009, ratified by Law No. 102/2009, specifies that the reference to management and coordination activity contained in Art. 2497, first paragraph, of the Italian Civil Code must be interpreted with reference to the fact that "entities" refers to "collective legal subjects other than the State having shareholdings in the company in the context of their entrepreneurial activity, or for economic or financial purposes".

SHARE CAPITAL STRUCTURE BASED ON 2018 INTERIM DIVIDEND PAYMENT

ENI SHAREHOLDINGS: BREAKDOWN BY NUMBER OF SHARES HELD(a)

Share capital: 4,005,358,876

(a) Eni's share capital is equal to €4,005,358,876, represented by 3,634,185,330 ordinary nominative shares without par value.

ENI SHAREHOLDINGS: GEOGRAFICAL BREAKDOWN(a)

Share capital: 4,005,358,876 - Number of shares: 3,634,185,330 - Number of shareholders: 257,006

Shares: 1,607,803,226 Shares: 692,785,490 Shares: 651,848,224 Shares: 281,673,928 Shares: 338,004,189 Shares: 33,045,197

(a) Eni's share capital is equal to €4,005,358,876, represented by 3,634,185,330 ordinary nominative shares without par value.

Shareholding limits and restrictions on voting rights

Pursuant to Art. 6.1 of the By-laws, in accordance with the special provisions specified in Art. 3 of Decree-law No. 332 of 199435, ratified by Law No. 474 of 1994 (Law No. 474/1994), under no circumstances whatsoever may any party directly or indirectly hold more than 3% of the share capital. Exceeding these limits shall lead to a suspension of the exercise of voting rights or any other rights (except property rights) related to the shares exceeding the aforementioned limit, but leaving the property rights for such shares unchanged.

Therefore, while formally placing a limit on share ownership, in reality the rule restricts the exercise of voting rights and any other rights except property rights related to shares exceeding 3% of the share capital.

For the purposes of calculating the shareholding limit (3%), shares held through trustees and/or intermediaries are also taken into account.

Pursuant to Art. 32.2 of the By-laws and the aforementioned regulations, shareholdings in the share capital of the Company held by the Ministry of the Economy and Finance, public bodies, or organisations controlled by the latter are exempt from this provision.

Lastly, the special provision states that the clause regarding shareholding limits shall not apply if the above limit is exceeded following a takeover bid, provided that the bidder – as a result of the takeover – will own a shareholding of at least 75% of the capital with voting rights in deliberations regarding the appointment or dismissal of Directors36.

Securities that confer special rights

The Company has not issued securities that confer special controlling rights. The By-laws of Eni do not provide for shares that give the holder a weighted vote.

Special powers of the State

Decree-law No. 21 of March 15, 2012, ratified with amendments, by Law No. 56 of May 11, 2012 ("Law No. 56/2012"), brought the Italian laws on the special powers of the State in line with European Union rules.

The special powers apply to companies that hold strategic assets vital to the interests of the Italian State as defined by the abovementioned ministerial regulations. In brief, the current arrangements include: a) veto power (or the power of imposing conditions or requirements) over transactions involving strategic assets that could result in a situation, not regulated by Italian or EU laws, that threatens serious injury to interests regarding networks and systems security, as well as continuity of supply; b) power of attaching conditions or opposing the acquisition by a non-EU party37, of an equity interest in the company that directly or indirectly holds strategic assets such as to give rise to the assumption of control of the company, when such an acquisition may result in a threat of serious harm to the abovementioned essential interests of the Italian State (see also the provisions of Decree-law No. 148 of October 16, 2017, ratified with Law No. 172 of December 4, 2017, reported below).

3% holding and voting limit provided by law and By-laws 17

⁽³⁵⁾ Art. 3 of Law No. 474/1994 was formally amended by Decree-law No. 21 of March 15, 2012, ratified, with amendments, by Law No. 56 of May 11, 2012.

⁽³⁶⁾ Pursuant to Law No. 266 of 2005 (2006 Finance Act), to which a specific paragraph of this Report is dedicated, this clause would cease to apply if the rules regarding the issue of shares or participating financial instruments – such as those specified in the law itself – were included in the By-laws.

⁽³⁷⁾ Pursuant to Art. 2, paragraph 5, last phrase, of Law No. 56/2012: "A non-EU party is any natural or legal person who does not have their resident, habitual abode, registered office or administrative headquarters or the centre of their principle activity in a Member State of the European Union or the European Economic Area or is not otherwise established therein".

In the calculation of a material equity interest, account shall be taken of interests held by third parties that have entered into a shareholders' agreement with the acquiring party. As a general rule, the acquisition, for any reason, by an entity outside of the EU of the stock of a company that holds strategic assets is allowed on condition of reciprocity, in compliance with international agreements signed by Italy or the EU.

With specific regard to the power referred to in point b), the regulations require that non-EU acquiring parties shall notify the Prime Minister's Office, as well as establishing procedural time limits. Until such notification and, subsequently, until the time period for any exercise of such power has begun, the voting rights or any rights other than property rights attaching to the material equity interest are suspended. In the event of breach of the commitments imposed, for the entire relevant period the voting rights or any rights other than property rights attaching to the material equity interest are suspended.

Any resolutions adopted with the decisive vote of such equity interest, or any other resolutions or acts adopted in violation or breach of the commitments imposed are void. In addition, except where the situation represents a criminal offence, non-compliance with the commitments imposed shall be punishable by a pecuniary administrative penalty. In the event of objection, the acquiring party may not exercise the voting rights or any rights other than property rights attaching to the material equity interest, which such party shall sell within one year. In the event of failure to comply, at the request of the Government, the courts shall order the sale of the material equity interest. Resolutions of the shareholders' meeting adopted with the decisive vote of such equity interest are void.

These powers are exercised exclusively on the basis of objective and non-discriminatory criteria. Decree-law No. 148 of October 16, 2017, ratified with Law No. 172 of December 4, 2017, extended the special powers of the State to high-technology industries38. Furthermore, with regard to investments in companies with strategic assets by a non-EU investor, the decree added two assessment criteria for the exercise of the special powers in addition to safeguarding the essential interests of the State, namely a threat to security or to public order39.

Shares and participating financial instruments referred to in Law No. 266 of December 23, 2005

With the aim of "promoting privatisation and the diffusion of investment in shares" of companies in which the State holds a material shareholding, Art. 1, paragraphs 381-384 of Law No. 266 of 2005 (2006 Finance Act) allowed companies primarily controlled by the State, such as Eni, to insert provisions in their By-laws, whereby shares or participatory debt financial instruments can be issued that grant the special Shareholders' Meeting of the holders of these instruments the right to request that new shares – even at par value – or new participatory debt financial instruments with voting rights in the ordinary and extraordinary Shareholders' Meeting be issued to them. Adopting this amendment would imply the elimination of the shareholding limit indicated in Art. 6.1 of the By-laws. At present, Eni's By-laws do not include this provision.

Material agreements that would become effective, be modified or extinguished in the event of a change of control of Eni40

Except as specified below, Eni and its subsidiaries are not parties to any material agreements that can be disclosed without causing serious prejudice to the Company, and that would become

(40) In accordance with Borsa Italiana's recommendations on the preparation of this Report, the By-laws of the Company do not contain an exception to the passivity rule set out in Art. 104, paragraphs 1 and 1-bis, of the Consolidated Law on Financial Intermediation, nor do they require the application of the neutralisation rule provided for under Art. 104-bis, paragraphs 2 and 3 of such Consolidated Law.

⁽³⁸⁾ The identification of the high-technology industries is left to one or more implementing government regulations, not yet issued at the date of approval of this Report.

⁽³⁹⁾ In order to determine if a foreign investment could impact security or public order, Art. 2, paragraph 6 of Law No. 56/2012, as updated by Decree-law No. 148/2017 establishes that it is possible to take in to consideration the circumstance of a foreign investor being controlled by the government of another non-EU Country, including by way of significant financing.

effective, be modified or extinguished should the Shareholders who control Eni change. Material agreements are agreements that have been examined and approved by the Board of Directors since they fall within its exclusive responsibility.

On January 22, 2016 the disposal by Eni SpA to Fondo Strategico Italiano SpA ("FSI", now CDP Equity) of 12.503% of Saipem SpA share capital took effect, causing the shareholders' agreement signed on October 27, 2015 between Eni and FSI concerning Saipem shares to come into force41. Under the provisions of that agreement, the agreement itself will immediately cease to have effect if the parties should no longer be directly or indirectly subject to the common control of the Ministry of the Economy and Finance. For more information, please see the documentation made available to the public in accordance with applicable law on the websites of Consob and Saipem SpA.

Agreements between the Company and Directors which envisage indemnities in the event of resignation or dismissal without just cause, or if their employment contract should terminate as the result of a takeover bid

Information on any agreements between the Company and Directors concerning indemnities in the event of resignation or dismissal without just cause or termination of employment as the result of a takeover bid are provided – in accordance with the recommendations of Borsa Italiana for the preparation of this Report – in the Remuneration Report pursuant to Art. 123-ter of the Consolidated Law on Financial Intermediation, published in the "Governance" section of the Company's website eni. com, to which the reader should refer for more information.

Powers to Directors to increase share capital, issue participatory debt financial instruments and authorisation to purchase treasury shares

The Board of Directors has not been given the power to increase the share capital pursuant to Art. 2443 of the Italian Civil Code nor to issue participatory debt financial instruments.

The Board of Directors has currently received no authorisation to buy back Eni shares. As of December 31, 2018, Eni held a total of 33,045,197 treasury shares, equal to 0.909% of share capital.

Information on treasury shares is available in the "Shareholders" page of the "Governance" section of the Company's website.

(41) The shareholders' agreement had an initial duration of three years from the effective date, and was due to expire on January 22, 2019. Since it was not cancelled by the Parties, it was automatically renewed for a further period of three years, until January 22, 2022. Certain provisions of the shareholders' agreement relating to information flows between Saipem SpA and Eni SpA/CDP Equity, although in force, have not been implemented yet, pending a clarification from Consob, requested by Saipem.

CORPORATE GOVERNANCE INFORMATION42

42

Compliance with the Corporate Governance Code for Listed Companies

Eni has adopted43 the Corporate Governance Code for listed companies44 prepared by the Corporate Governance Committee.

The adoption of the Corporate Governance Code for listed companies is formally resolved by the Board of Directors of Eni, with the support of the competent Committees where necessary.

The adoption is announced to the public in a press release.

In addition, in order to provide the market with a simple, transparent and comparable assessment of the choices made by the Company, and maintain the continuity of disclosures, the text of the Code is published before publication of the annual Corporate Governance Report on Eni's website eni.com (under the Governance section), with an indication of the solutions and improvements adopted by Eni with respect to individual Code recommendations, along with explanations of these choices45.

Following adoption, an "action plan" is developed to update the Eni governance system, if necessary, and any needed modifications of corporate documentation are made to incorporate the new recommendations.

Most recently on February 14, 2019, the Board of Directors decided to adopt new recommendations issued on July 16, 2018.

The following sections details the decisions taken by the Eni Board of Directors in adopting the recommendations of the Corporate Governance Code.

Role of the Board of Directors (Art. 1 of the Corporate Governance Code)

In line with the recommendations of the Corporate Governance Code the functions of the Board of Directors have been defined, thereby confirming its strategic role and central position within the Company's Corporate Governance system and its wide range of responsibilities, including in terms of Company and Group organisation and the internal control and risk management system46.

In addition, since 2006, the interests of stakeholders other than shareholders have been considered a key variable that the Directors of Eni must assess in taking informed decisions and in creating value over the medium to long-term (Criterion 1.P.2 of the Corporate Governance Code).

More specifically, the Board of Directors has reserved itself a central role in the definition of sustainability policies and in approving the associated reporting47.

In addition, within the four-year strategic planning process, the Board is supported by the Company risk management process in defining the nature and level of risk in a manner consistent with

(42) Corporate Governance information is provided in accordance with the provisions of Art. 123-bis, first paragraph, letters e) and l), and second paragraph, of the Consolidated Law on Financial Intermediation.

(43) The Board adopted the Corporate Governance Code for the first time (ed. 1999) with a resolution of January 20, 2000 and, subsequently, with resolutions of December 13, 2006, December 15, 2011, April 26, 2012, December 11, 2014 and February 25, 2016. (44) The text of the Corporate Governance Code, including the amendments made in July 2018, is available on Borsa Italiana and Corporate Governance Committee website (http://www.borsaitaliana.it/comitato-corporate-governance/codice/codice.en.htm). (45) The document, which replaced the Eni Code of December 13, 2006, was updated the subsequent adoptions to the Corporate Governance Code of 2011, 2014, 2015 and 2018.

(46) For more information, please see the section "Internal Control and Risk Management System" of this Report.

(47) For the eighth year, in 2019, Eni will present an integrated report to the market (2018 Annual Report) to allow Eni stakeholders, investors and others to completely understand the interconnections existing between the financial results and those in the environmental and social fields, outlining the dimensions of Eni's integrated business model. Non-financial performances are also detailed in the "Consolidated Non-Financial Information", as provided for under Legislative Decree No. 254/2016 included in the Management Report in the 2018 Annual Report.

Eni adopted the Corporate Governance Code for listed companies of July 2018

Transparency of choices

The strategic role of the Board

the issuer's strategic objectives, taking account of any risk that may affect the sustainability of the issuer's business in a medium/long-term perspective48, (Criterion 1.C.1 letter b) Corporate Governance Code).

The most significant transactions of the Company and its subsidiaries were therefore defined and submitted to the Board for approval (Criterion 1.C.1 letter f) Corporate Governance Code), while conduct and procedural controls were adopted regarding those cases in which the Directors and Statutory Auditors have an interest of their own or on behalf of another, including in the case of transactions with related parties of Eni.

As required by the Code, the Board has specified those subsidiaries49, that are of strategic importance (Versalis SpA and Eni International BV) and has expressly recognised the principle of safeguarding the managerial independence of listed subsidiaries, with the commitment on the part of Eni to comply with the provisions of the Code that refer to the shareholders of the issuer.

Moreover, the minimum frequency with which Directors with delegated powers must report to the Board has been reduced from three to two months since 2006 (Criterion 1.C.1 letter d) of the Corporate Governance Code)50.

In addition, the Chairman is tasked with ensuring the adequacy, completeness and clarity of the reporting to the Board with the assistance of the Board Secretary51. The Chairman is also responsible for ensuring that appropriate and detailed enquiries are performed during Board meetings where, in specific cases, it is not possible to provide the necessary information sufficiently in advance and for asking the Chief Executive Officer, including at the request of more or more Directors, to organise the participation of the Heads of the competent Departments of the Company or other Group companies, depending on the subject matter, in Board meetings to provide more detailed information on the issues listed in the agenda.

Particular attention is always devoted to the Board's self-assessment process. Specifically, in line with the recommendations of the Corporate Governance Code (Criterion 1.C.1 letter g), each year the Board of Directors, with the support of the Nomination Committee, which supervises the process, and under the leadership of its Chairman, conducts a Board Review52 of the Board and its Committees. The Board always involves an external advisor in this exercise in order to ensure greater objectivity in the proceedings.

The comparison with best practices and a reflection on board dynamics are essential elements of Eni's Board Review. Furthermore, the Review considers the criteria of diversity in the composition of the Board, as recommended by the Code.

Following the Board Review, the Board, if necessary, agrees an action plan to improve the operation of the Board and its Committees.

Moreover, in line with international best practices, the Eni Board, in determining the procedures for performing the Board Review, also assesses the possibility of conducting a peer review of the Directors, consisting in the evaluation by each Director of the individual contributions of the other Directors to the Board's work. The peer review, which has been conducted four times in the past seven years and was carried out most recently in February 2018 in conjunction with the 2017 board review, is a best practice among Italian listed companies; Eni was among the first Italian companies to adopt it in 2012.

Subsidiaries of strategic importance

Board Review

⁽⁴⁸⁾ For a more extensive discussion, see the information on integrated risk management and the associated reporting in the section "Internal control and risk management system" of this report.

⁽⁴⁹⁾ Subsidiaries of strategic importance previously included Saipem SpA. Since January 22, 2016, however, Saipem is no longer under the sole control of Eni in accordance with Art. 93 of the Consolidated Law on Financial Intermediation. However, the Board of Directors confirmed its competence to resolve on the exercise of voting rights and on the appointment of the members the corporate bodies of Saipem SpA.

⁽⁵⁰⁾ This frequency is reported in the resolution delegating the powers of the Board of Directors. For more information, please refer to the section "Powers and Responsibilities" of the Board of Directors of this Report.

⁽⁵¹⁾ For more information, please refer to the "Board Secretary and Corporate Governance Counsel" and "Meetings and running of meetings" of the Board of Directors sections of this Report.

⁽⁵²⁾ For more information, please refer to the "Board Review and advice for shareholders on the composition of the Board" section of this Report.

Prior to the appointment of the new Board in 2014 and 2017, following the Board Review the outgoing Board, having obtained the opinion of the Nomination Committee, provided advice to the shareholders on the size and composition of the future Board, also in terms of diversity, and on the management and professional skills its members should have (Criterion 1.C.1 letter h) of the Corporate Governance Code)53. Moreover, in October 2018, acting on a proposal of the CEO and after consultation with the Control and Risk Committee, the Board of Directors of Eni approved the internal rules concerning Market Information Abuse (Issuers) which, updating the previous internal rules for aspects related to "issuers", complies with the modifications introduced by Regulation No. 596/2014/EU of April 16, 2014 and by related implementing regulations, as well as with national regulations, taking into account the Italian and foreign institutional guidelines on the subject54. With regard to the policy on the maximum number of management and control positions in other companies compatible with the effective performance of the role of Director, the Board adopted different criteria depending on the specific role (executive or non-executive) and the nature and size of the company in which those positions are held55. As regards the changes made in July 2015 to the comments to Criterion 1 of the Corporate Governance Code concerning the role of the Board of Directors in assessing the actual operation of the system of internal controls and management of risks that could potentially jeopardise the medium/long-term sustainability of the issuer's activity, the Eni Board clarified that: (i) the Board of Directors exercises the role and duties assigned to it under Criterion 7 of the Corporate Governance Code with regard to the internal control and risk management system, in addition to those provided for by law and the Eni Bylaws. More specifically, pursuant to Criteria 7.P.3 and 7.C.1 of the Code, the Board is charged with providing strategic guidance and evaluating the adequacy of the system and assessing its effectiveness; and (ii) the Board does not conduct ex post assessment of the actual results of the control system, which would not be consistent with its duties and the provisions of Criteria 7.P.3 and 7.C.1 of the Code and would Board advice on the size and composition of the future Board Policy of the Board on the maximum number of management and control positions The role of the Board on the internal control and risk management system

partially overlap with the roles of other control bodies (such as the Board of Statutory Auditors and the internal audit Department). The indications contained in these comments on the role of the Board in assessing the actual operation of the internal control and risk management system are also considered by Eni in the possible future development of the system in the light of best practices.

Composition of the Board of Directors (art. 2 of the Corporate Governance Code)

For the composition of the Board, the Shareholders' Meeting could take into account the guidelines given to the market by the previous body as regards diversity, professionalism, experience, even managerial, and internationality. The size and composition, also in terms of diversity, of the Board are subject to evaluation within the annual Board Review, the results of which are reported in the relevant paragraph to this Report.

As regards the positions within the Board, in line with the By-laws, the recommendations of the Corporate Governance Code and applicable best practice, the Eni model establishes a clear separation between the functions of Chairman and those of Chief Executive Officer, conferring operational powers only to the latter; the Board of Directors has given the Chairman, who qualifies as independent in accordance with applicable law, a central role in internal controls, not assigning her any operational responsibilities and ensuring that in the performance of her duties she has the support of the Secretary of the Board of Directors, including in his capacity as Corporate Governance Counsel56, appointed by the Board itself. Separation between the functions of Chairman and those of Chief Executive Officer

In order to ensure the effective and informed performance by each Director of his or her role, in line with the recommendations of the Corporate Governance Code (Criterion 2.C.2), since 2008 Eni has Board Induction and Ongoing Training

(53) For more information, please refer to the "Board Review and advice for shareholders on the composition of the Board" section of this Report.

(54) For more information, please refer to the "Management System Guideline Market Information Abuse (Issuers)" section of this Report.

(55) For more information, please refer to "Policy of the Board of Directors on the maximum number of offices held by its members in other companies" section of this Report.

(56) For more information, please refer to the "Board Secretary and Corporate Governance Counsel" section in this Report.

In addition, in accordance with international best practice, during their term the Directors undergo additional training ("ongoing-training") and at least once a year the Board holds a meeting at an operating facility in Italy or abroad.

Considering the separation of the offices of Chairman and Chief Executive Officer provided for in the Eni By-laws, so that the position of Chairman is not held by someone who controls the issuer and the Chairman is a non-executive Director, to date the independent Directors have not considered it necessary for the Board to designate a Lead Independent Director (Criterion 2.C.3 of the Corporate Governance Code).

In its meeting on February 14, 2019, the Board adopted the recommendations in terms of diversity, including gender diversity, introduced by the Corporate Governance Code in July 2018.

Independent Directors (Art. 3 of the Corporate Governance Code)

Since 2006 the Eni Board of Directors has specified the recommendations in Article 3 of the Corporate Governance Code on the criteria governing the independence of Directors, setting a threshold of 30% of fixed remuneration as the amount of "additional remuneration" that could compromise the independence of Directors58, and defining "close relatives" more specifically to include the spouse, relatives and relatives-in-law within the second degree of kinship (Criterion 3.C.1 letters d) and h) of the Corporate Governance Code). It also identified the "subsidiaries of strategic importance" of which a Director may have been a significant Officer (Criterion 3.C.1 letter b).

Furthermore, going above and beyond the Corporate Governance Code recommendation that at least one-third of the boards of directors of issuers belonging to the FTSE-Mib (of which Eni is one) be made up of independent directors (Criterion 3.C.3 of the Corporate Governance Code), Eni's Board is composed of 6 independent Directors out of a total of 9 (therefore comprising a majority of the Directors).

With the support of the Nomination Committee, the Board periodically verifies that the Directors continue to satisfy the independence requirements. The Nomination Committee assists in this task by conducting enquiries on the basis of the statements made by Directors and the information available to the Company.

Despite the absence of specific meetings among themselves, the independent Directors, in view of the frequency of Board meetings, have opportunities to get together informally on the occasion of those meetings to exchange views and ideas. The issue of formal meetings of the independent Directors has been addressed in the Board Review, and the consensus conclusion has been that informal meetings among the independent Directors are useful, even without formal meetings.

Formation and operation of Board committees (Art. 4 of the Corporate Governance Code)59

The Eni Board has always had all of the committees provided for under the Corporate Governance Code (Criterion 4.C.2), establishing that the number of members of such committees (Control and Risk Committee, Nomination Committee and Remuneration Committee) shall not represent a majority of the Board, so as to avoid altering the Board's decision making process (Criterion 4.C.1 letter a) of the Corporate Governance Code).

(58) The Board also clarified that the remuneration received by the Directors for their participation on the Sustainability and Scenarios Committee is not considered additional remuneration for the purposes of the independence requirements, as occurs for the other

committees envisaged by the Corporate Governance Code (Criterion 3.C.1 letter d).

Eni specifications

The number of independent Directors

Periodic checks and the role of the Nomination Committee

Board Committees

⁽⁵⁷⁾ For more information, please refer to the section "Board Induction" of this Report.

⁽⁵⁹⁾ For more information, please refer to the section "Board Committees" in this Report.

Furthermore, the Eni Board of Directors has established the Sustainability and Scenarios Committee60 to offer recommendations and advice concerning sustainability issues, thereby anticipating the amendments made to the Corporate Governance Code in July 2015 (Criterion 4.C.2 and comments to Article 4 of the Corporate Governance Code).

With specific regard to the composition of the Committees, the Chairmen of all Committees are independent Directors in accordance with the provisions of law and Corporate Governance Code; the Chairmen of the Control and Risk Committee and the Sustainability and Scenarios Committee are also appointed from the minority slate.

In addition, the Board has strengthened the requirements beyond the recommendations of the Corporate Governance Code (Criterion 7.P.4) to establish that at least two members of the Control and Risk Committee possess adequate experience in accounting and financial or risk management matters, as specified in the Committee rules. On April 13, 2017 the Eni Board of Directors determined that 3 of the 4 members of the Committee, including the Chairman, had the experience indicated above. The experience represented on the Committee is therefore greater than that required in its own rules.

The Remuneration Committee also has more members meeting the expertise and experience requirements than the minimum provided for in the Code: on April 13, 2017 the Eni Board of Directors determined that 3 of the 4 members had adequate expertise and experience in financial or remuneration policy matters.

With regard to reporting, since 2012, at each Board meeting the Chairmen of the Committees report to the Board itself on the most significant issues examined by them at their most recent meetings. The Eni Board also receives reports at least every six months on the Committees' activities (Criterion 4.C.1 letter d) of the Corporate Governance Code). Reporting

Appointment of Directors (Art. 5 of the Corporate Governance Code)

The Board of Directors established a Nomination Committee, endowing it with the recommendation and advisory functions in the areas provided for in the Corporate Governance Code and for other issues concerning, in particular, the appointment system and the assessment of requirements for Directors61.

Contingency plan

As regard the recommendations concerning the succession plan for the CEO (Criterion 5.C.2 of the Code), at its meeting of February 17, 2015 the Board of Directors, following assessment by the Nomination Committee and in view of the shareholding structure of the Company, decided not to prepare a succession plan for the CEO, but did adopt a contingency plan that sets out the actions to take if unexpected events should prevent the CEO from performing his duties62. The issue was also addressed during the most recent Board Review.

Remuneration of Directors (Art. 6 of the Corporate Governance Code)

In accordance with the suggestions of Borsa Italiana on preparing this Report, details on compliance with the recommendations concerning remuneration are contained in the Remuneration Report, prepared pursuant to Art. 123-ter of the Consolidated Law on Financial Intermediation, to which the reader is referred.

Internal control and risk management system (Art. 7 of the Corporate Governance Code)63

Eni's internal control and risk management system (ICRMS) is integrated into the organisational, administrative and accounting arrangements of the Company and, more generally, the structure of corporate governance and complies with the recommendations of the Corporate Governance Code and, in general, with national and international benchmark models and best practices in the field.

• (60) The Sustainability and Scenarios Committee was established on May 9, 2014, in replacement of the Oil-Gas Energy Committee.
• (61) For more information, please refer to the section "Nomination Committee" of this Report.
• (62) For more information, please refer to the section "Succession plan for Executive Director and key personnel" of this Report.
• (63) For more detailed information on method for implementing the criteria and the principles of the Corporate Governance Code relating to the Internal Control and Risk Management System, refer to the relevant section of this Report.

The Company rules and regulations, which will be described in more detail in the section of this Report on the ICRMS, define its architecture, operating procedures and processes for coordinating those involved. The Board, in establishing these rules and regulations, has maintained a central role for itself in approving the ICRMS guidelines64 and the compliance and governance rules and regulations generally.

Accordingly, in these recent years the Eni Board of Directors has undertaken a number of important steps to strengthen the internal control system even further, confirming the assignment to the CEO of the duty of overseeing the internal control and risk management system and assigning the Chairman of the Board of Directors a major role in the control system.

To that end, it has been provided that:

• in line with the most recent best practices, the Head of the Internal Audit Department65 reports to the Board, and on its behalf, to the Chairman, without prejudice to his being functionally subject to the authority of the Control and Risk Committee and the CEO, as Director in charge of the internal control and risk management system. The Control and Risk Committee oversees the activities of the Internal Audit Department with respect to the Board's duties in this area (solution adopted starting from 2012). It also reports to the Board of Statutory Auditors in its capacity as "Audit Committee" under US law (solution adopted starting from 2006) - (Criterion 7.C.5 letter b) of the Corporate Governance Code);
• proposals concerning the appointment, the removal, the budget and the remuneration of the Head of the Internal Audit Department are made by the Chairman of the Board of Directors in agreement with the Director in charge of the internal control and risk management system (CEO); the nomination/revocation proposal is also subject to examination by the Nomination Committee - (Criterion 7.C.1, final part, of the Corporate Governance Code);
• in addition, the Chairman is involved in proposals to nominate or terminate the main bodies and officers of the Company, especially those involved in controls (Watch Structure, Financial Reporting Officer, Head of Integrated Compliance and Head of Integrated Risk Management);
• the Chairman of the Board of Directors is consulted during the process of the approval by the Board of Directors of the guidelines for the internal control and risk management system, with regard to the part on internal audit activities (Criterion 7.C.1 letter a) of the Corporate Governance Code);
• the Internal Audit guidelines ("Internal Audit Charter") are approved by the Board of Directors, acting on a proposal of the Chairman of the Board of Directors, in agreement with the Director in charge of the internal control and risk management system (CEO) and after consulting with the Control and Risk Committee (Criterion 7.C.1 letter a) of the Corporate Governance Code);
• internal rules (Management System Guidelines) governing the internal audit process are approved by the Chairman of the Board of Directors, after consulting with the director in charge of the Internal Control and Risk Management System (CEO) and the Control and Risk Committee (Criterion 7.C.1 letter a) of the Corporate Governance Code);
• the plan prepared by the Head of the Internal Audit Department is approved by Board of Directors, after consulting with the Chairman of the Board of Directors (Criterion 7.C.1 letter c) of the Corporate Governance Code);
• requests for audits may be submitted by the Chairman of the Board of Directors, who must simultaneously notify the Director in charge of the internal control and risk management system (CEO), the Chairman of the Control and Risk Committee and the Chairman of the Board of Statutory Auditors (Criterion 7.C.4 letter d) of the Corporate Governance Code.

With specific regard to managing corporate risks66, since May 9, 2014 the Board has decided that the CEO will report on the main business risks at least once every quarter, thereby further strengthening the model, developed in accordance with international principles and best practices.

Furthermore, during 2018 the definition of the reference model of the Integrated Compliance process was completed in line with the SCIGR Guidelines on integrated compliance, with the aim of favoring compliance with mandatory regulations (law and regulations) applicable to Eni, according to a riskThe role of the Board

The role of the CEO and the Chairman

25

Quarterly reporting on risks

Integrated Compliance process

⁽⁶⁴⁾ To date, the "ISRMS guidelines" approved by the Board acting on a proposal of the Control and Risk Committee refer exclusively to the guidelines in the Management System Guideline "Internal Control and Risk Management System", which is addressed in a specific section of this Report.

⁽⁶⁵⁾ The internal audit function is performed by an internal Department.

⁽⁶⁶⁾ For more information, refer to the "Management System Guideline for Integrated Risk Management" section of this Report.

based and integrated approach, and the development and dissemination of a corporate culture based on ethical values, correct conduct and compliance with regulations, also through specific training and awareness-raising efforts. The Integrated Compliance model also includes reporting flows to the top management, management and corporate control bodies structures67. As regards the new comments to Article 7 of the Corporate Governance Code concerning whistleblowing systems, given that fact that Eni is also listed on the US stock market and in application of the provisions of the Sarbanes-Oxley Act, it has drafted internal rules on anonymous complaints68, which also govern reports received from third parties. These rules were approved by the Board of Statutory Auditors in its role as Audit Committee under US law (comments to Article 7 of the Corporate Governance Code). Statutory auditors (Art. 8 of the Corporate Governance Code) Since December 13, 2006, the Board of Statutory Auditors has expressly complied with the Code provisions that apply to it. With specific regard to independence, in January 2016 the Board of Statutory Auditors expressed its view that the limit of 30% established by the Board for additional remuneration that could compromise the independence (see the governance solution in Criterion 3.C.1, letter d) of the Corporate Governance Code) does not include any remuneration received by the Statutory Auditors for positions held on the control bodies of subsidiaries of Eni, taking due account of the 1997 Consob recommendation on the "group statutory auditor". As regards the recommendation concerning the remuneration of Statutory Auditors (Criterion 8.C.3 of the Corporate Governance Code), which was introduced in July 2015, the Eni Board has clarified that it should be referred to the shareholders. In addition, the Board of Statutory Auditors, acting as the Internal Control and Financial Auditing Committee pursuant to Legislative Decree No. 39/2010 (Consolidated Law on Statutory Audits), at its January 19, 2018 meeting and, most recently on its February 13, 2019 meeting, evaluated its composition, verifying that it meets the requirements imposed by the provisions of Art. 19 of that law, providing that "the members of the internal control and financial auditing committee, as a body, are competent in the sector in which the company being audited operates". In addition, like the self-assessment process of the Board of Directors, the members of the Board of Statutory Auditors conducted an assessment of the composition and operation of the Board of Statutory Auditors69. With reference to the role of the Board of Statutory Auditors within the Internal Control and Risk Management System, please refer to the relevant section in this Report. Relations with shareholders (Art. 9 of the Corporate Governance Code) Information on activities aimed at facilitating the participation of shareholders at the General meetings, the exercise of shareholders' rights as well as on relations between the company and shareholders is provided in the following sections dedicated to "Shareholders' meeting and rights" and "Relations with shareholders and the market". Observations on the Letter of December 2018 of the Chairman of the Corporate Governance Committee At its meeting of January 17, 2019 the Chairman of the Eni Board of Directors notified the Board of a letter sent by the Chairman of the Corporate Governance Committee to the Chairmen of the Boards, the (67) For more information, refer to the "Management System Guideline Integrated Compliance" section of this Report. (68) For more detailed information, please refer to the section "Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad" of this Report. (69) For more information, please refer to the section "Meetings and operational procedures" of the Board of Statutory Auditors of this Report. Whistleblowing Independence of the Statutory Auditors Competence requirement

Chairmen of the control bodies and the Chief Executive Officers of listed companies70 indicating four main areas for improvement identified by the Committee to promote better implementation of the Corporate Governance Code following the 2018 Report on the application of the Code, sent together with the letter. The documents were also made available to the Statutory Auditors in the same meeting.

With regard to the areas of improvement indicated in the letter (concerning pre-board-meeting documentation, the assessment of independence of the Directors, the Board Review and remuneration policies)71, in the above-mentioned Board meeting, it was underlined that Eni was broadly in line with the Committee's recommendations. In particular concerning:

Pre-board meeting documentation72: specific assessments on the adequacy of information flows are carried out as part of the Board's self-assessment (whose results, also on this aspect, are reported in the paragraph of this Report dedicated to the Board Review). With reference to the protection of confidentiality requirements without compromising the adequacy and timeliness of information flows, the Committee's recommendation is in fact respected by Eni.

Directors independence assessment73: Eni is in line with the recommendation both in terms of application and assessment of the independence criteria and in terms of disclosure of the assessments carried out in the context of this Report, which gives a detailed explanation of the assessments carried out by the Board and, in particular, the elements taken into consideration in order to exclude the significance of some relations examined for the purpose of assessing the independence of directors.

Board Review74: this Report provides detailed information on how the board review takes place. Furthermore, the task of supervising the process is carried out both by the Nomination Committee and the Chairman. With reference to the adoption of methods that assess the individual contribution of each director, it should be noted that the review process carried out by Eni's Board, with the support of an external consultant, does not only include the use of standard questionnaires but also includes conducting individual interviews with directors or some of them and a final discussion in the Council on the results of the self-assessment. Furthermore, the questionnaires used for the Board Review are structured in such a way as to leave room for possible further indications and comments from the individual directors.

Remuneration policy75: Eni is in line with the Committee's recommendations. For further details, see the Remuneration Report, published pursuant to art. 123-ter of the Consolidated Law on Financial Intermediation.

The Chairman of the Board of Directors also told the Chairmen of the Eni Board Committees to bear in mind the above recommendations in their activities and to submit any further reflections or initiatives to the Board.

The recommendations in the letter were also discussed by the Directors in the Board Review, as a result of which a broad consensus emerged regarding Eni's alignment with the recommendations expressed by the Corporate Governance Committee76.

• (70) The letter and the 2018 Report were also sent to those Officers of Eni.
• (71) For more information, please refer to the 2019 Remuneration Report, which is available on the Eni website at www.eni.com.
• (72) The Committee invites the boards of directors to express an explicit assessment of the adequacy of the pre-board meeting information received during the year. In particular, the Chairmen of the Boards of Directors are invited to promote this evaluation activity and to ensure that the confidentiality requirements are protected without compromising the adequacy and timeliness of the information flows preceding the Board meetings.
• (73) The Committee invites the administrative bodies to apply more stringently the independence criteria defined by the Code and the control bodies to monitor the correct application of these criteria: the Committee underlines how the cases of non-application should represent an exception and, above all, be the subject of an in-depth assessment at individual level, with reference to the situations of the individual director, and an exhaustive explanation in the report on corporate governance.
• (74) The Committee invites the board of directors to ensure greater transparency regarding the manner in which the board review is carried out. The Committee hopes, especially for larger issuers, that a member of the board will oversee the board review process and that procedures will be adopted to enhance the individual contribution of each director.
• (75) The Committee invites the boards of directors and the committees competent in matters of remuneration to assess the adequacy of the remuneration policies to the pursuit of sustainability of the company's activities in the medium to long term. In particular,

the Committee recommends, especially to the competent bodies of medium-large issuers, to strengthen the connection of variable remuneration to parameters linked to long-term objectives and to limit to individual and well-explained exceptional cases the possibility of disbursing sums not linked to predetermined parameters (i.e. "ad hoc" bonuses).

(76) For more information on outcome of the Board Review, please refer to the section "Board Review and advice for shareholders on the composition of the Board" of this Report.

The areas of improvement indicated by the Corporate Governance Committee and the position of Eni

Policy for diversity and gender balance on corporate Boards77

In line with the provisions of law and the recommendations of the Corporate Governance Code, the Company has implemented measures to ensure diversity in the composition of Eni SpA and its subsidiaries, with particular regard to age, gender composition and educational and professional background.

Eni SpA78

Gender diversity in the corporate bodies of Eni SpA

With regard to gender balance, in compliance with applicable law since 2012 the Eni By-laws have contained rules governing the composition of the slates and supplemental voting mechanisms to ensure the presence on the Board of Directors and the Board of Statutory Auditors of a minimum number of members of the less represented gender. These rules, which were referred to in the outgoing Board's advice to shareholders, took effect as from the election of the corporate bodies of Eni SpA in 2014, on which occasion the composition of the Board of Directors and of the Board of Statutory Auditors achieved gender balance, as required by law79, immediately giving the less represented gender one-third of the seats in the Board of Directors, compared with the one-fifth provided for by law.

The Shareholders' Meeting of Eni SpA, also in appointing the new Board in 2017, ensured a balanced gender representation electing three female Directors, equal to one-third of the Directors: Chairman Emma Marcegaglia and Diva Moriani, drawn from the majority slate, and Karina Litvack, from the minority slate. The Shareholders' Meeting also chose two female standing Auditors out of five (Rosalba Casiraghi, Chairman, from the minority slate, and Paola Camagni, from the majority slate).

As regards the other diversity aspects in the composition of the Board of Directors, in the run up to the Shareholders' Meeting to appoint the Directors, in 2014 and 2017 the Eni Board provided the shareholders with advice on what it considered the appropriate size of the Board and the qualities of its members80.

In its most recent advice to shareholders, the Board emphasised that the composition need to take account of the need for diversity, including in terms of gender and seniority, in accordance with applicable law. In addition, the Board noted that the mix of skills on the Board should be well balanced.

(77) Information provided also in accordance with Art. 123-bis, second paragraph, letter d-bis) of the Consolidated Law on Financial Intermediation.

(78) More generally, note that "diversity policy" in the selection of candidates and the composition of the Eni SpA corporate bodies is first and foremost in the hands of the shareholders of Eni SpA, who submit slates for the election within the framework of the Italian system for electing corporate bodies. No slate has ever been presented by the outgoing Board, even if this is allowed under the By-laws. (79) Law No. 120/2011 and Consob Resolution No. 18098 of 2012. In particular, the law requires that the least-represented gender obtains at least one fifth of the members of the boards of Directors and Statutory Auditors, in the first term, and at least one third of the members, in the following two terms. For more information, please refer to sections "Appointment" of the Board of Directors and "Composition and appointment" of the Board of Statutory Auditors of this Report.

(80) For more information, please refer to the section "Board review and advice for shareholders on the composition of the Board" of this Report.

The current membership of the Board appears to be in line with these recommendations.

In addition, with specific reference to the diversity issues indicated in Art. 123-bis, paragraph 2, letter d-bis) of the Consolidated Law on Financial Intermediation and in the Corporate Governance Code, those aspects were addressed in the most recent Board Review, also adding further aspects of diversity with respect to those recommended by the Code (e.g. in terms of specific skills).

In particular, the Review confirmed a positive judgment on the composition of the Board in terms of skills and experience. Furthermore, the vast majority of the Directors and in some cases all of them, renewed their appreciation for the representation of diversity, evaluating in particular the following: gender, age and experience (including managerial), independence and seniority, skills and professionalism, executive and non-executive component as well as the training and professional path.

The outcome of the self-assessment is discussed in a specific section of the Report, which you are invited to consult.

The diversity issues regarding the composition of the Board of Statutory Auditors, other than the question of gender balance referred to earlier, also underwent analysis in the review conducted by the Board of Statutory Auditors.

Eni's subsidiaries

Since 2011, the Board of Directors of Eni has recommended that the unlisted Italian subsidiaries move forward the effects of the law on gender balance, thereby achieving in 2012 the goal that at least onethird of the members of the board appointed are women with regard to those appointments that Eni may make as a shareholder.

In 2013, these companies amended their By-laws to ensure that, for three consecutive terms, the compositions81 of the boards of directors and the boards of statutory auditors, including in the case of replacement of a member respect this policy. More specifically, they must ensure that the lessrepresented gender receives at least one-fifth of the positions of each board in the first election and one-third of the positions in the next two elections.

The following chart illustrates the representation of women on the corporate bodies of Eni subsidiaries at December 31, 2018.

BOARD OF DIRECTORS ENI SPA ITALIAN SUBSIDIARIES* 31.12.2018 (%)

BOARD OF STATUTORY AUDITORS ENI SPA ITALIAN SUBSIDIARIES* 31.12.2018 (%)

BOARD OF DIRECTORS ENI SPA ITALIAN AND FOREIGN** SUBSIDIARIES*** 31.12.2018 (%)

32.94 32.65

* The companies considered are consolidated Eni subsidiaries with a full consolidation method (28 companies) for consistency with the representation of the "2018 Consolidated Non-Financial Information".

** The control bodies are not indicated in consideration of the fact that the control body is not always equivalent to the Board of Statutory Auditors in Italy, reecting dierent governance models and the applicable legislation.

*** The companies considered are Eni's foreign and Italian consolidated subsidiaries with a full consolidation method (28 Italian companies and 147 foreign companies) for consistency with the representation of the "2018 Consolidated Non-Financial Information".

Gender diversity in Eni's subsidiaries

The Management System Guideline for "Corporate Governance for Eni companies"82 approved by the Board of Directors on May 30, 2013 and updated on October 26, 2017 provides that, subject to legal requirements, in choosing the members of the management and control bodies of its foreign subsidiaries, Eni must consider diversification, also in terms of gender, where possible.

Shareholders' Meeting and rights83

The Shareholders' Meeting is the body through which shareholders may actively participate in Company life by expressing their will, in the manner and on the issues specified by the law and the Company By-laws. The Shareholders' Meeting meets on an ordinary or extraordinary basis.

The call and operation of the Meeting and the methods for exercising the rights of the shareholders are those provided for by law and the By-laws.

Responsibilities of the Shareholders' Meeting

Pursuant to the law, the ordinary Shareholders' Meeting (i) approves the annual report (which, for Eni, ends as at December 31); (ii) appoints and removes Directors84, and determines their number within the limits set forth in the By-laws; (iii) appoints the Statutory Auditors and the Chairman of the Board of Statutory Auditors; (iv) assigns the engagement to perform the statutory audit, upon a proposal of the Board of Statutory Auditors; (v) determines the remuneration of the Directors and Statutory Auditors; (vi) deliberates on the responsibilities of the Directors and Statutory Auditors; (vii) deliberates on any other issues ascribed to it by law, as well as the authorisations required by the By-laws85; (viii) approves the Shareholders' Meeting rules. Ordinary Shareholders' Meeting

The extraordinary Shareholders' Meeting is called to resolve upon amendments to the By-laws and on extraordinary operations such as, for example, capital increases, mergers and demergers, excluding those matters for which the Board of Directors is responsible in accordance with the By-laws, pursuant to Art. 2365, paragraph 2, of the Italian Civil Code, namely: (i) merger through acquisition and proportional demerger of companies in which the Company holds shares or shareholdings equivalent to 90% or more of the share capital; (ii) opening or closing of secondary offices and (iii) updating the By-laws to bring them in line with legislative changes. Extraordinary Shareholders' Meeting

Specifically, with regard to regulations that apply to amendments to the By-laws, Eni is subject to ordinary legislation, except in those cases mentioned in the section of this Report on the special power given the State, to which the reader may refer.

Methods of calling and participating in the Shareholders' Meeting

Calling the Shareholders' Meeting

The Shareholders' Meeting is usually called by the Board of Directors86. In addition, in order to ensure greater clarity for shareholders, the By-laws clarify the minimum threshold – equivalent to one-twentieth of share capital – required for calling the Shareholders' Meeting at the request

(85) More specifically, under Art. 16.1 of the By-laws, the ordinary Shareholders' Meeting authorises the transfer of business.

(86) Pursuant to Art. 24 of the Eni By-laws, the Board of Statutory Auditors may, having first notified the Chairman of the Board of Directors, call the Shareholders' Meeting. The power to call the Shareholders' Meeting may be exercised if supported by at least two Statutory Auditors.

Minimum threshold for calling the Shareholders' Meeting

⁽⁸²⁾ For more information, refer to the section "Management System Guideline Corporate Governance for Eni companies" of this Report. (83) Information provided in accordance with Art. 123-bis, first paragraph, letters e) and l) with reference to the By-laws and second

paragraph, letter c) of the Consolidated Law on Financial Intermediation. (84) Pursuant to Art. 18 of the Eni By-laws: "If the Shareholders' Meeting has not appointed a Chairman, the Board shall elect one from among its members".

31

of the shareholders, while also outlining the restrictions and methods specified by law for exercising said option87.

In line with the applicable law, the By-laws state that the Board of Directors may call the Shareholders' Meeting to approve the annual financial statements within 180 days from the close of the financial year, subject to the publishing of the draft financial statements approved by the Board of Directors within four months from the close of the financial year.

Both the ordinary and extraordinary Shareholders' Meetings, pursuant to Art. 16.2 of the By-laws, are normally held after a single call. The Board of Directors may decide to hold both kinds of Shareholders' Meetings after more than one call, if appropriate. In any case, the constitutive and deliberative majority specified by the law shall apply.

Notice calling the Shareholders' Meeting

The Shareholders' Meeting is called by a notice published no later than thirty days prior to the date of the Shareholders' Meeting at first or single call88, on the Company's website and in the other manners set forth by Consob in a regulation, including publication of an extract in daily newspapers, and circulation through the centralised storage mechanism authorised by Consob called (viewable at ).

This deadline, in accordance with Art. 125-bis, second paragraph, of the Consolidated Law on Financial Intermediation, is moved to forty days for Shareholders' Meetings called to elect members of the management and control bodies through the use of slates.

The notice calling the meeting, the content of which is defined by the law and the By-laws, contains all the necessary instructions on how to participate in the Shareholders' Meeting including, in particular, information on how to obtain proxy forms and vote by mail forms, including via the Company's website.

Report containing the Shareholders' Meeting agenda

In the same manner and within the same time period for publishing the notice calling the meeting, unless otherwise specified by the law, the Board of Directors issues a report to the public containing the Shareholders' Meeting agenda.

When items are contained in the agenda that, in the abstract, require different deadlines for calling the Shareholders' Meeting, the reports explaining these items are published by the deadlines for publication of the notices for each of the items on the agenda.

Record Date

With regard to Shareholders' Meeting attendance and voting, the so-called "record date" mechanism applies (Art. 13.2 of the By-laws), which establishes that the right to participate in a Meeting and vote must be certified by a statement submitted by an authorised intermediary on the basis of its accounting records to the Company on behalf of the person entitled to vote.

This statement shall be submitted on the basis of the balances recorded at the end of the seventh trading day prior to the date of the Shareholders' Meeting. Credit or debit records in the intermediary's accounts after this date have no effect in terms of legitimising the exercise of voting rights in the Shareholders' Meeting.

(87) Pursuant to Art. 2367 of the Italian Civil Code, shareholders may not request that a Shareholders' Meeting be called for matters which, under the law, the Shareholders' Meeting deliberates upon a proposal of the Directors or on the basis of a project or report of the Directors; apart from these cases, shareholders who request a Meeting be called must prepare a report on the proposals concerning the issues to be discussed; the Board of Directors should make it available to the public, together with any comment, at the time the notice calling the meeting is published, in accordance with the provisions of Art. 125-ter, third paragraph, of the Consolidated Law on Financial Intermediation. In the event of a delay by the Board of Directors, the Board of Statutory Auditors will make the shareholders' report, along with its own comments, available to the public. (88) This term is moved back to twenty-one days for Shareholders' Meetings specified in Art. 2446 (reduction of share capital due to financial losses), Art. 2447 (reduction of share capital to below the legal limit), and Art. 2487 (appointment and removal of the liquidators; criteria for the liquidation procedure) of the Italian Civil Code.

Shareholders' Meeting called to approve annual financial statements

Both the Ordinary and Extraordinary Shareholders' Meetings are normally held after a single call

Notice publication

The report of the Board of Directors

The record date mechanism applies to participate and vote in a Shareholders' Meeting

The Company must receive the statements submitted by the intermediary by the end of the third trading day prior to the date set for the Shareholders' Meeting, or by the date established by Consob regulations, in agreement with the Bank of Italy, without prejudice to legitimate attendance and the right to vote in the event that the certifications reach the Company after the deadline, provided that it reaches the Company by the start of the Shareholders' Meeting at each call.

The Eni By-laws clarify that the record date is determined with reference to the date of the Meeting at first call, provided that subsequent call dates are indicated in the notice at first call; otherwise, it is determined with reference to the individual meeting dates.

Tools for participating in and voting at the Shareholders' Meeting

The Company aims to provide shareholders with tools to facilitate participation in Shareholders' Meetings and exercise the right to vote.

In particular, without prejudice to the possibility of voting by mail in compliance with the law, the following provisions have been set forth in the By-laws:

• assignment of Shareholders' Meeting proxies via electronic means89;
• electronic notification of the proxies, which the shareholder may do through the appropriate section of the Company's website, in the manner set forth in the notice calling the meeting;
• attending Shareholders' Meeting by means of telecommunications systems or voting by mail-in or electronic ballot. The By-laws defer to the notice calling the meeting regarding the instructions on using these telecommunications systems.

Designated Representative and other initiatives for shareholders

The Designated Representative	Furthermore, the Company may designate a person (the "Designated Representative") to whom shareholders may grant proxies, with the relevant instructions, for all or some of the proposals on the agenda up until the end of the second trading day prior to the date for the Shareholders' Meeting.
	Since the Shareholders' Meeting held in 2011, Eni has made use of its right to appoint a Designated Representative to whom shareholders can freely grant proxies.
	Lastly, in order to simplify proxy voting by shareholders who are employees of the Company and who belong to shareholders' associations that meet applicable legal requirements, the By-laws provide that Eni shall make available to these shareholders' associations locations for communications and collecting proxies, in accordance with the terms and conditions agreed with the legal representatives of said associations.
Special section of the Company's website dedicated to the Shareholders' Meeting	To ensure that shareholders can exercise the rights established in Eni's By-laws, a special section of the Company's website is dedicated to the Shareholders' Meeting through which it is possible, among other things, to submit questions before the Shareholders' Meeting and provide electronic notification of proxies.
	In addition, to make it easier for shareholders to exercise their rights, the simple proxy form, the form used to grant a proxy to the Designated Representative, and the vote by mail forms are available in the special section on the Eni website, together with the relevant documentation and information on providing notification, including electronically, of proxies, granting a proxy to the Designated Representative and vote by mail forms.
A video and a Shareholder's Guide	In order to stimulate the interest of shareholders and promote a greater degree of involvement in Company life, the Company has created a video and a Shareholder's Guide available on its website with clear and direct information on attendance procedures and on the rights that can be exercised at the Shareholders' Meeting.

(89) Pursuant to Art. 135-novies, paragraph 6, of the Consolidated Law on Financial Intermediation, an electronic proxy can be granted via computer document signed electronically in accordance with the Digital Government Code (Legislative Decree No. 82/2005).

Additions to the agenda and proposed resolutions

Pursuant to the law and the By-laws, Shareholders who severally or jointly represent at least onefortieth of the Company's share capital may:

• ask for items to be added to the agenda by submitting a request within ten days of publication of the notice calling the meeting, or other term as provided for by the law. The request, which cannot include matters upon which the Shareholders' Meeting must resolve upon a proposal of the Directors or on the basis of a project or report of the Directors, must specify the additional items proposed and must be accompanied by a report to the Board of Directors on the matters proposed for discussion. This report must be made available to the public at the Company's registered office, on the Company's website and as otherwise provided for by applicable regulations, together with any evaluations by the Board of Directors, at the same time as publication of the notice of the additions to the agenda and within fifteen days prior to the date of the Shareholders' Meeting;
• submit proposed resolutions on items already in the agenda in the manner and within the time period given for adding items to the agenda.

Proposed resolutions on the items in the agenda may be presented by individual shareholder entitled to vote at the Shareholders' Meeting, even if such shareholders do not meet the share capital threshold indicated above.

Additions to the agenda and proposed resolutions may also be submitted electronically, provided that the shareholder complies with any requirements indicated by the Company in the notice calling the meeting for identifying such shareholder.

Shareholders' Meeting Rules

The efficient and orderly running of the Shareholders' Meetings and the right of each shareholder to comment on individual items on the agenda are guaranteed by the Shareholders' Meeting Rules available on the Eni website.

Questions prior to the Shareholders' Meeting

The Board of Directors strives to ensure timely and easy access to any Company information regarded as important for shareholders so that they may exercise their rights in an informed manner90. Furthermore, those entitled to vote may submit questions on matters on the agenda even before the start of the Shareholders' Meeting.

Any questions received prior to the Shareholders' Meeting shall be answered at the latest during the Meeting itself, including in paper form distributed at the start of the Meeting to those entitled to vote. The Company may provide a single answer to questions with similar content and is not required to reply when the information is already available in "question and answer" format in the appropriate section of its website.

The notice calling the Meeting indicates the date by which questions must be submitted to the Company: no more than three days prior to the Shareholders' Meeting at first or single call, or five days if the Company indicates in the notice that it plans to answer questions prior to the Meeting. In the latter case, the answers must be provided at least two days prior to the Shareholders' Meeting and must be published in the appropriate section of Eni's website.

Shareholders' Meetings are chaired by the Chairman of the Board of Directors, or in the event of his absence or impediment, by the CEO, or in their absence, by a person named by the Shareholders' Meeting. The Chairman of the Shareholders' Meeting explains the items to be discussed and conducts the Meeting to ensure a fair discussion and that shareholders have the right to comment and receive answers on each of the agenda items.

Questions prior to the Shareholders' Meeting

Additions to the agenda and proposed resolutions

2018

Board of Directors91

MEMBER	POSITION	M/m	CRC	RC	NC	SSC	YEAR OF FIRST APPOINTMENT	TERM
Emma Marcegaglia	Independent Chairman*	M					May 2014	Shareholders' Meeting called to approve 2019 financial statements
Claudio Descalzi	Chief Executive Officer	M					May 2014	Shareholders' Meeting called to approve 2019 financial statements
Andrea Gemma	Independent Director	M		C			May 2014	Shareholders' Meeting called to approve 2019 financial statements
Pietro Angelo Guindani	Independent Director	m				C	May 2014	Shareholders' Meeting called to approve 2019 financial statements
Karina Litvack	Independent Director	m					May 2014	Shareholders' Meeting called to approve 2019 financial statements
Alessandro Lorenzi	Independent Director	m	C				May 2011	Shareholders' Meeting called to approve 2019 financial statements
Diva Moriani	Independent Director	M			C		May 2014	Shareholders' Meeting called to approve 2019 financial statements
Fabrizio Pagani**	Non-Independent Director	M					May 2014	Shareholders' Meeting called to approve 2019 financial statements
Domenico Livio Trombone	Independent Director	M					April 2017	Shareholders' Meeting called to approve 2019 financial statements
Roberto Ulissi	Board Secretary and Corporate Governance Counsel (Company Secretary)
CRC - Control and Risk Committee							SSC - Sustainability and Scenarios Committee	C Chairman

NC - Nomination Committee RC - Remuneration Committee

* The Chairman meets the independence requirements provided for by law, as referred to the Company By-laws. In accordance with the provisions of the Corporate Governance Code, the Chairman cannot be designated as Independent as she is a key ocer of the company.

** On July 27, 2017 the Board of Directors established an Advisory Board, which is chaired by Director Fabrizio Pagani and composed of leading international energy experts: Ian Bremmer, Christiana Figueres, Philip Lambert and Davide Tabarelli.

(91) Information provided in accordance with Art. 123-bis, second paragraph, letter d) of the Consolidated Law on Financial Intermediation.

Composition

Pursuant to Art. 17 of the By-laws, the Board of Directors is composed of no fewer than three and no more than nine members, elected by the ordinary Shareholders' Meeting, which determines their number within these limits.

The By-laws state that non-controlling shareholders can appoint three-tenths of the total number of Directors on the Board92.

The Shareholders' Meeting of April 13, 2017:

• confirmed the number of Directors at nine;
• confirmed the duration of the Board's term at three financial years and in any case until the date of the Shareholders' Meeting that will be called to approve the financial statements for the 2019 financial year;
• appointed the Board of Directors and Chairman of the Board, in the persons of Emma Marcegaglia (Chairman), Claudio Descalzi, Andrea Gemma, Pietro A. Guindani, Karina A. Litvack, Alessandro Lorenzi, Diva Moriani, Fabrizio Pagani and Domenico Livio Trombone, specifically:
  • 1) Emma Marcegaglia, Claudio Descalzi, Andrea Gemma, Diva Moriani, Fabrizio Pagani and Domenico Livio Trombone were nominated from the slate of candidates submitted by the Ministry of the Economy and Finance, which at the time owned 4.34% of the share capital. Present at the vote was 63.27% of the share capital. The slate was elected by the majority of the shareholders that participated in the Shareholders' Meeting (about 56.43% of the voting capital), equal to 35.7% of the share capital;
  • 2) Pietro A. Guindani, Karina A. Litvack and Alessandro Lorenzi were nominated from the slate of candidates submitted by institutional investors, holding a total of 1.7% of the share capital. Present at the vote was 63.27% of the share capital. The slate was elected by the non-controlling shareholders that participated in the Shareholders' Meeting (about 42.93% of voting capital), equal to 27.16% of share capital.

The Shareholders' Meeting also appointed Emma Marcegaglia as Chairman of the Board of Directors. She was the candidate listed first in the majority slate, submitted by the Ministry of the Economy and Finance. Around 63.01% of the share capital took part in the voting, with 62.46% of the entire share capital voting in favour of her appointment (equal to around 99.12% of the shares present at the Meeting).

On April 13, 2017, the Board confirmed the appointment of Claudio Descalzi as Chief Executive Officer and General Manager of the Company.

On April 13, 2017, Roberto Ulissi, Corporate Affairs and Governance Senior Executive Vice President of the Company, was confirmed by the Board as the Secretary of the Board of Directors upon a proposal of the Chairman. In addition, the Board of Directors appointed the Secretary to be Corporate Governance Counsel, reporting hierarchically and functionally to the Board and, on its behalf, to the Chairman. He provides independent assistance and advice to the Board and to the Directors and periodically presents a report to the Board on the functioning of Eni's corporate governance system.

Below are some personal and professional profiles of Eni's current Board members.

The Board is composed by 9 Directors, 3 of whom designated by minority shareholders

The Secretary of the Board of Directors and Corporate Governance Counsel

(92) Art. 4, paragraph 1-bis, of Law No. 474/1994 (as amended by Legislative Decree No. 27/2010), providing that privatized listed companies apply the general framework set down in the Consolidated Law on Financial Intermediation, confirms that at least one-fifth of the voting directorships must be allocated to slates submitted by non-controlling shareholders.

Date of birth: 1965 Position: Chairman Participation on Committees: - In office since: May 2014 Number of positions held in other companies for the purposes of the Corporate Governance Code: 1

Slate elected on: majority (Ministry of the Economy and Finance)

EMMA MARCEGAGLIA

She was born in Mantua in 1965 and has been Chairman of Eni since May 2014. She has been Chairman of the Fondazione Eni Enrico Mattei since November 2014. She is also Chairman and CEO of Marcegaglia Holding SpA and Deputy Chairman and CEO of the subsidiary companies operating in the processing of steel. She is also Chairman and CEO of Marcegaglia Investments Srl, the holding company of the diversified activities of the group. She is President of the University Luiss Guido Carli, and a member of the Board of Directors of Bracco SpA and Gabetti Property Solutions SpA. From 1994 to 1996 she was National Deputy President of Young Entrepreneurs of Confindustria, from 1997 to 2000 she was President of the European Confederation of the Young Entrepreneurs (YES), from 1996 to 2000 President of Young Italian Entrepreneurs of Confindustria and from 2000 to 2002 she was Vice President of Confindustria for Europe. From May 2004 to May 2008 she was Confindustria Vice President for infrastructures, energy, transport and environment and Italian Representative of the top High Level Group for energy, competitiveness and environment set up by the European Commission. From May 2008 to May 2012 she was President of Confindustria. From July 2013 to July 2018 she was President of Businesseurope. She was a member of the Management Board of Banco Popolare and Director of Finecobank SpA and Italcementi SpA. She also held the position of Chairman of the Aretè Onlus Foundation. She graduated in Business Administration at the Bocconi University in Milan and attended a Master in Business Administration at New York University.

CLAUDIO DESCALZI

Date of birth: 1955 Position: Chief Executive Officer Participation on Committees: - In office since: May 2014 Number of positions held in other companies for the purposes of the Corporate

Governance Code: - Slate elected on: majority (Ministry of the Economy and Finance)

Born in Milan, he has been Eni's CEO since May 2014. He is a member of the General Board and of the Advisory Board of Confindustria and Director of Fondazione Teatro alla Scala. He is a member of the National Petroleum Council. He joined Eni in 1981 as Oil & Gas field petroleum engineer and then became project manager for the development of North Sea, Libya, Nigeria and Congo. In 1990 he was appointed Head of Reservoir and operating activities for Italy. In 1994, he was appointed Managing Director of Eni's subsidiary in Congo and in 1998 he became Vice President & Managing Director of Naoc, a subsidiary of Eni in Nigeria. From 2000 to 2001 he held the position of Executive Vice President for Africa, Middle East and China. From 2002 to 2005 he was Executive Vice President for Italy, Africa, Middle East, covering also the role of member of the board of several Eni subsidiaries in the area. In 2005, he was appointed Deputy Chief Operating Officer of the Exploration & Production Division in Eni. From 2006 to 2014 he was President of Assomineraria and from 2008 to 2014 he was Chief Operating Officer in the Exploration & Production Division of Eni. From 2010 to 2014 he held the position of Chairman of Eni UK. In 2012, Claudio Descalzi was the first European in the field of Oil & Gas to receive the prestigious "Charles F. Rand Memorial Gold Medal 2012" award from the Society of Petroleum Engineers and the American Institute of Mining Engineers. He is a Visiting Fellow at The University of Oxford. In December 2015 he was made a member of the "Global Board of Advisors of the Council on Foreign Relations". In December 2016 he was awarded an Honorary Degree in Environmental and Territorial Engineering by the Faculty of Engineering of the University of Rome, Tor Vergata. In July 2018 he has joined the mothers2mothers UK Board of Trustees. He graduated in physics in 1979 from the University of Milan.

ANDREA GEMMA

Date of birth: 1973 Position: Director Participation on Committees: Remuneration Committee (Chairman); Nomination Committee (member); Control and Risk Committee (member) In office since: May 2014

Number of positions held in other companies for the purposes of the Corporate Governance Code: 1 Slate elected on: majority (Ministry of the Economy and Finance)

He was born in Rome in 1973 and has been Director of Eni since May 2014. He is Professor of Private Law at The Third University of Rome and was visiting professor at European Universities and at Villanova University. He is member of the strategic board of the American University of Rome. He is Appeal Court Lawyer. He is member of the Board of Directors of Banca UBAE SpA. He is President of Board of Statutory Auditors of PS Reti SpA and Sirti SpA. He is also Official Receiver of Valtur SpA, Liquidator of Novit Assicurazioni SpA and Sequoia Partecipazioni SpA.

PIETRO GUINDANI

Date of birth: 1958 Position: Director Participation on Committees: Sustainability and Scenarios Committee (Chairman); Remuneration Committee (member) In office since: May 2014

Number of positions held in other companies for the purposes of the Corporate Governance Code: - Slate elected on: minority (Italian and foreign institutional investors)

He was born in Milan in 1958 and has been Director of Eni since May 2014.

Since July 2008 he has been Chairman of the Board of Directors of Vodafone Italia SpA, where between 1995-2008 he was Chief Financial Officer and subsequently Chief Executive Officer. He previously held positions in the Finance Departments of Montedison and Olivetti and started his career in Citibank after graduating in Business at the Università Luigi Bocconi in Milan. He is currently also a Board Member of the Italian Institute of Technology and Cefriel-Polytechnic of Milan. He is Board Member of Confindustria and Member of the Executive Board of Confindustria Digitale; he is President of Asstel-Assotelecomunicazioni and Vice President responsible for Universities, Innovation and Human Capital of Assolombarda. He was also Director of Société Française du Radiotéléphone – SFR S.A. (2008-2011), Pirelli & C. SpA (2011-2014), Carraro SpA (2009-2012), Sorin SpA (2009-2012), Finecobank SpA (2014-2017) and Salini-Impregilo SpA (2012-2018).

KARINA A. LITVACK

Date of birth: 1962 Position: Director Participation on Committees: Control and Risk Committee (member); Sustainability and Scenarios Committee (member) In office since: May 2014

Number of positions held in other companies for the purposes of the Corporate Governance Code: - Slate elected on: minority (Italian and foreign institutional investors)

She was born in Montreal in 1962 and she has been a Director in Eni since May 2014. She is currently a member of the Global Advisory Council in Cornerstone Capital Inc., a member of the Advisory Board in Bridges Ventures LLC, a member of Business for Social Responsibility and of Yachad, a member of the Advisory Council for Transparency International UK and a member of the Senior Advisory Panel of Critical Resource. From 1986 to 1988 she was a member of the Corporate Finance team of PaineWebber Incorporated. From 1991 to 1993 she was a Project Manager of the New York City Economic Development Corporation. In 1998 she joined F&C Asset Management plc

where she held the position of Analyst Ethical Research, Director Ethical Research and Director Head of Governance and Sustainable Investments (2001-2012). She was also a member of the Board of the Extractive Industries Transparency Initiative (2003-2009) and of the Primary Markets Group of the London Stock Exchange Primary Markets Group (2006-2012). From January 2010 to November 2017 she was member of the CEO Sustainability Advisory Panel in SAP AG. She graduated in Political Economy at the University of Toronto and in Finance and International Business from Columbia University Graduate School of Business.

ALESSANDRO LORENZI

Date of birth: 1948 Position: Director Participation on Committees: Control and Risk Committee (Chairman); Remuneration Committee (member) In office since: May 2011

Number of positions held in other companies for the purposes of the Corporate Governance Code: 1 Slate elected on: minority (Italian and foreign institutional investors)

He was born in Turin in 1948 and has been Director of Eni since May 2011. He is Director of Ersel SIM SpA and of Mutti SpA. He began his career at SAIAG SpA in the Administration and Control area. In 1975 he joined Fiat Iveco SpA where he held a series of positions: Controller of Fiat V.I. SpA, Head of Administration, Finance and Control, Head of Personnel of Orlandi SpA in Modena (1977-1980) and Project Manager (1981-1982). In 1983 he joined GFT Group where he was Head of Administration, Finance and Control of Cidat SpA, a GFT SpA subsidiary (1983- 1984), Central Controller of GFT Group (1984-1988), Head of Finance and Control of GFT Group (1989-1994) and Managing Director of GFT SpA, with ordinary and extraordinary powers over all operating activities (1994-1995). In 1995 he was appointed Chief Executive Officer of SCI SpA, where he oversaw the restructuring process. In 1998 he was appointed Operating Officer and was subsequently Director of Ersel SIM SpA until June 2000. In 2000 he became Executive Officer of Planning and Control at the Ferrero Group and General Manager of Soremartec, the technical research and marketing company of the Ferrero Group. In May 2003 he was appointed CFO of Coin Group and in 2006 he became Chief Corporate Officer at Lavazza SpA, becoming Board member from 2008 to June 2011. From July 2011 to September 2017 he was Chairman of Società Metropolitana Acque Torino SpA.

DIVA MORIANI

Date of birth: 1968 Position: Director Participation on Committees: Nomination Committee (Chairman); Control and Risk Committee (member); Remuneration Committee (member) In office since: May 2014

Number of positions held in other companies for the purposes of the Corporate Governance Code: 3 Slate elected on: majority (Ministry of the Economy and Finance)

She was born in Arezzo in 1968 and has been a Director in Eni since May 2014. She is currently Executive Vice Chairman of Intek Group SpA, Vice Chairman of KME AG, a German holding company of KME Group, Director of KME Srl, Member of the Supervisory Board of KME Germany GmbH and Director of Assicurazioni Generali SpA, Moncler SpA, Dynamo Academy, Dynamo Foundation and Associazione Dynamo. From 2007 to 2012 she was CEO of I2Capital Partners, a private equity fund sponsored by Intek Group SpA, with an investment strategy focused on "Special Situations" and from 2014 to 2017 CEO of KME AG. She is graduated in Economics at the University of Florence.

FABRIZIO PAGANI

Date of birth: 1967 Position: Director

Participation on Committees: Sustainability and Scenarios Committee (member); Nomination Committee (member); Advisory Board (Chairman)93 In office since: May 2014

Number of positions held in other companies for the purposes of the Corporate Governance Code: 1 Slate elected on: majority (Ministry of the Economy and Finance)

He was born in Pisa in 1967 and has been a Director in Eni since May 2014. He is Global Head of Economics and Capital Market Strategy of Muzinich & Co. and Board member of Save SpA, Banca Finint SpA, Engineering SpA, Eurosky Holdings Ltd and Eurosky Srl. From 2014 to 2018 he has been Head of the Office of the Minister of Economy and Finance. He was Deputy Director of the International Training Programme for Conflict Management at the High School Sant'Anna in Pisa from 1995 to 1998, Professor of International Law in the Faculty of Political Science at the University of Pisa from 1993 to 2001, Deputy Chief of the Legislative Office at the Department of European Affairs from 1998 to 1999 and Counsellor for International Affairs in the Ministry of Industry and Foreign Trade from 1999 to 2001. He was Senior Advisor at the OECD from 2002 to 2006, Head of the Office of the State Undersecretary, within the Prime Minister Office from 2006 to 2008, board member of SACE SpA from 2007 to 2008, Political Counsellor of the OECD General Secretary from 2009 to 2011, Director of the G8/G20 Office at the OECD from 2011 to 2013 and Senior Economic Counsellor to the Prime Minister and G20 Sherpa from 2013 to 2014. He was a NATO Fellow and was a visiting scholar at Columbia University, New York. He graduated in International Studies at the Scuola Superiore Sant'Anna, Pisa, and has a Master degree from the European University Institute, Florence.

DOMENICO LIVIO TROMBONE

Date of birth: 1960 Position: Director Participation on Committees: Nomination Committee (member); Sustainability and Scenarios Committee (Member) In office since: April 2017

Number of positions held in other companies for purposes of the Corporate Governance Code: 5 Slate elected on: majority (Ministry of Economy and Finance)

He was born in Potenza in 1960 and has been Director of Eni since April 2017. He is a certified chartered accountant and a certified public auditor. He is partner of Studio Trombone Dottori Commercialisti e Associati. He is currently Chairman of the Board of Directors of Consorzio Cooperative Costruzioni – CCC, of Focus Investments SpA and of Società Gestione Crediti Delta SpA. He is, among the others, Director of Aeroporto Guglielmo Marconi di Bologna SpA and of International World Group Srl. Furthermore, he is Chief Executive Officer of Atrikè SpA and Sole Director of FINCCC SpA and of Focus Investment International Srl. He is also Chairman of the Board of Statutory Auditors of Coop Alleanza 3.0 Sc, Unipol Banca SpA, Cooperativa Immobiliare Modenese Soc. Coop., H2I SpA and of Tenute del Cerro SpA. He is standing Statutory Auditor, among the others, of: Arca Assicurazioni SpA, Arca Vita SpA, CCFS Soc. Coop, Cooperare SpA, Il Ponte SpA, PLT Energia SpA, Unipol Finance SpA, Unipol Investment SpA, UnipolPart I SpA and Unisalute SpA. He is Liquidator in Italcarni Sc and in Open.Co S.c. He is technical consultant in legal proceedings, coadjutor in bankruptcy proceedings, liquidator, trustee in bankruptcy and judicial commissioner. Over the years he held positions in banks, in asset management and insurance companies. More in detail, he was standing Statutory Auditor in Carimonte Holding SpA, Unicredit Servizi Informativi SpA, Immobiliare Nettuno Srl and Gespro SpA. From April 2006 to March 2007 he was Director of Aurora Assicurazioni SpA. From October 2007 until the merger of the Company in FonSai SpA, he was Chairman of the Board of Statutory Auditors in Unipol Assicurazioni SpA. Until December 2008 he was Director in Banca Popolare del Materano SpA and BNTConsulting SpA. From April 2010 to October 2011 he was Chairman of the Board of Directors in BAC Fiduciaria SpA. From April 2009 to December 2011 he was

Chairman of the Board of Statutory Auditors in Arca Impresa Gestioni SGR SpA. From April 2007 until April 2012 he was Chairman of the Board of Statutory Auditors in Cassa di Risparmio di Cento SpA. From April 2010 to May 2016 he was Chief Executive Officer of Carimonte Holding SpA, becoming Chairman until 26 July 2018. From December 2011 to December 2012 he was independent Director in Serenissima SGR SpA. From December 2011 to April 2016 he was Director and Vice Chairman in Gradiente SGR SpA. From April 2007 to April 2016 he was Standing Statutory Auditor of Unipol Gruppo Finanziario SpA. He graduated in Economics from the University of Modena.

Appointment94

Voting slates

Directors are elected on the basis of slates

Share capital threshold to submit

slates

To ensure that non-controlling shareholders are represented on the Board, Directors are elected on the basis of slates.

This system has been set out in the Company By-laws since 1994, in compliance with the special rules that apply to the Company itself, envisaged by Art. 4 of Law No. 474/1994. The rule, however, which was amended by Legislative Decree No. 27/2010, with the introduction of paragraph 1-bis of Art. 4, states that during Shareholders' Meetings called after October 31, 2010, the procedure for appointing members of the Company bodies must comply with the provisions established for all listed companies, with the exception of the number of Board members allotted to non-controlling shareholders. Art. 4, paragraph 1-bis, of Law No. 474/1994 confirms that at least one-fifth of the voting directorships (rounded up) must be allocated to slates submitted by non-controlling shareholders.

Eni By-laws reserve to non-controlling shareholders the three-tens of the Board members.

Right to submit slates

Pursuant to Art. 17 of the By-laws, which were appropriately amended to align its provisions with those of the above-mentioned decree, slates of candidates may be submitted by shareholders95 when – either alone or together with others – they represent at least 1% of Eni's share capital or any other threshold established by Consob regulations. Since 2011, and most recently with its resolution dated January 24, 2019, Consob set the threshold for Eni at 0.5% of share capital.

Ownership of the minimum holding needed to submit slates shall be determined with regard to shares registered in the name of the shareholder on the date on which the slates are filed with the Company, without considering any subsequent transfer of the shares.

Each shareholder may only submit (or contribute towards submitting) and vote for a single slate. Controlling persons, subsidiaries and companies under common control may not submit or participate in the submission of other slates, nor can they vote on them, either directly or through nominees or trustees.

Composition, submission and publication of slates

Slates must list candidates in numerical order and expressly indicate those who fulfil the independence requirements specified by the law and By-laws. They are filed with the Company's registered office at least twenty-five days prior to the date of the Shareholders' Meeting convened to appoint the members of the Board of Directors, and are made available to the public at the Company's registered office, on its website and in any other manner established by law96 and by Consob regulations at least twenty-one days prior to the Meeting date. Slates of candidates are also communicated to Borsa Italiana SpA.

(95) Pursuant to Art. 17.3 of the By-laws, the Board of Directors may submit a slate of candidates.

(96) In accordance with Art. 147-ter of the Consolidated Law on Financial Intermediation and Eni By-laws, slates may also be filed with the Company using distance communication methods, provided that they comply with any requirements stated by the Company in the notice calling the Meeting that are strictly required to confirm the identity of the submitters.

Terms for the submission and publication of slates

⁽⁹⁴⁾ Information also provided pursuant to Art. 123-bis, first paragraph, letter l) of Consolidated Law on Financial Intermediation.

All candidates must satisfy the integrity requirements established by applicable law. Together with the filing of each slate, on penalty of inadmissibility, the following shall also be filed: the curriculum vitae of each candidate, statements of each candidate accepting his nomination and affirming the absence of any grounds making him ineligible or incompatible for such position and that he satisfies the requirements of integrity and independence required by the law and the By-laws97.

Furthermore, in line with legislative provisions, the By-laws of Eni98 provide that – for the first three elections of the Board of Directors subsequent to August 12, 2012 – slates that contain three or more candidates must include candidates of both genders, as specified in the notice calling the Meeting, in order to achieve gender balance99. When the number of members belonging to the less represented gender must by law be at least three, the slates submitted to elect the majority of members of the Board must include at least two candidates of the less represented gender in the slate.

If the slate voting mechanism does not yield the minimum gender representation required by law, an impartial mechanism is used based upon the number of votes received by the candidates to identify those of the over-represented gender to be replaced by the members of the less represented gender who may be listed on the same slate or chosen by the Shareholders' Meeting.

The shareholders who submitted the slates must also be identified, indicating the percentage of the share capital held100.

Once the voting formalities are satisfied, seven-tenths of the Directors to be elected are drawn from the slate that receives the most votes of the shareholders, rounded off in the event of a decimal number to the next lowest whole number, in the order that they appear on the slate. The remaining Directors are drawn from the other slates, which shall not be connected in any way, directly or indirectly, to the shareholders who have submitted or voted for the slate that receives the largest number of votes101. For this purpose, the votes received by each slate shall be divided by one or two or three depending upon the number of Directors to be elected.

The quotients, or points, thus obtained shall be assigned progressively to candidates of each slate in the order given in the slates themselves. The candidates of all the slates shall be ranked by the points assigned in a single list in descending order. Those who receive the most points shall be elected. In the event that more than one candidate receives the same number of points, the candidate elected shall be the person from the slate that has not hitherto had a director elected or that has elected the least number of Directors.

In the event that none of the slates has yet had a Director elected or that all of them have had the same number of Directors elected, the candidate among all such slates who has received the highest number of votes shall be elected. In the event of equal slate votes and equal points, the entire Shareholders' Meeting shall vote again and the candidate elected shall be the person who receives a simple majority of the votes.

If the minimum number of independent Directors required under the By-laws has not been elected following the above procedure, the By-laws provide for supplemental mechanisms to be used.

If, for any reason, including not being able to seat a full Board through slate voting, Directors are not appointed using this procedure, the Shareholders' Meeting shall resolve, with the required legal majorities, so as to ensure that the composition of the Board is compliant with the law and the By-laws.

The slate voting procedure shall apply only to the election of the entire Board of Directors.

• (98) Refer to Art. 17 and 34 of the Company's By-laws.
• (99) For the second term, the law requires that one-third of the Board be persons of the less-represented gender. Eni has already reached this objective in the first term.

Requirements for candidates

Rules to ensure gender balance in the composition of the Board

Voting slates

Supplemental mechanisms

41

⁽⁹⁷⁾ It is also requested that the statements indicate whether the candidate satisfies the independence requirements pursuant to Art. 3

of the Corporate Governance Code.

⁽¹⁰⁰⁾In addition, in the case of slates filed using distance communication methods, the requirements for confirming the identity of the submitters as specified in the notice calling the Meeting must be satisfied.

⁽¹⁰¹⁾ The criteria for connection are set out in Art. 144-quinquies of the Consob Issuers' Regulation.

The substitution

Pursuant to Art. 2386 of the Civil Code, referred to in Art. 17.5 of the Eni By-laws, if during the year one or more positions on the Board are vacated, the other members shall replace them with a resolution approved by the Board of Statutory Auditors, as long as the majority of the remaining Directors have been appointed by the Shareholders' Meeting. The Nomination Committee proposes candidates to serve as Directors to the Board, ensuring compliance with the requirements concerning the minimum number of independent Directors and the percentage reserved to the less represented gender. The Directors so appointed shall remain in office until the subsequent Shareholders' Meeting, which shall either confirm the appointment or appoint other Directors.

If a majority of the Directors should vacate their offices, the entire Board shall be considered to have resigned, and the Board shall promptly call a Shareholders' Meeting to elect a new Board.

Succession plan for Executive Director and key personnel

With reference to plans for the succession of Executive Directors, the Nomination Committee has been entrusted by the Board of Directors with developing a proposed succession plan for the CEO, to be submitted to the Board, where possible and appropriate in relation to the Company's shareholding structure.

At its meeting of February 17, 2015, after reviewing the Nomination Committee's evaluation, the Board of Directors decided to not prepare a succession plan for the CEO given the current shareholding structure of the Company. However, it decided upon a contingency plan, which sets out the steps to be taken in the event the CEO is unexpectedly unable to perform his duties.

The process and methodology for the succession plans for those holding key positions, including the plans for those positions that Eni's Board of Directors is responsible for appointing, have been used at Eni since 2012.

The process, which was presented on several occasions to the Nomination Committee starting in 2012, is managed by Eni's competent Human Resources Functions with the support of an external consultant, in particular for the aspects of methodological updating and for the activities that imply a comparison with the market. In 2018 the Nomination Committee addressed the issue of succession plans for key strategic positions with reference to the following:

• examination and confirmation of the adequacy of the process and methodology used;
• analysis of the highlights and KPIs of the overall succession plan relating to key company positions;
• analysis of the criteria relating to the succession plans of positions reporting directly to the Chief Executive Officer;
• effective application of the succession planning methodology for some positions, falling within the competence of the Committee, which have been subject to rotation during the year.

The succession plans for positions reporting directly to the Chief Executive Officer were presented to the Board of Directors at the meeting of February 14, 2019.

Independence requirements

The law and By-laws

The Consolidated Law on Financial Intermediation establishes that at least one Director, or two if the Board is comprised of more than seven members, must satisfy the independence requirements for Statutory Auditors of listed companies as set out in Art. 148, paragraph 3 of that law, as well as any other requirements set out in codes of conduct if the By-laws so provide.

Art. 17.3 of Eni's By-laws improve on the existing law by establishing that at least one Director, if there are no more than five Directors, or at least three Directors, if there are more than five, shall satisfy the independence requirements. The same article also provides for a mechanism beyond the ordinary election system for ensuring that the requirement of a minimum number of independent Directors is satisfied. By doing so, Eni seeks to strengthen the presence of independent Directors on its Board.

The independence requirements established by law and By-laws

The process and methodology for the succession plans for those holding key positions

A contingency plan in the event the CEO is unexpectedly unable

to perform his duties

The activities of the Nomination Committee in 2018

Corporate Governance Code recommendations

Art. 3 of the Corporate Governance Code also recommends that an adequate number of non-executive Directors be independent, meaning that they do not maintain nor have they recently maintained, directly or indirectly, any business relationships with the issuer or persons linked to the issuer of such a significance as to influence their autonomous judgement. The number and competences of independent Directors must be adequate in relation to the size of the Board and the activity performed by the issuer and they must be such as to enable the formation of committees within the Board, in accordance with the guidelines set out in the Code.

As for issuers belonging to the FTSE-Mib index, such as Eni, the Code recommends that at least one-third of the Board members should be independent Directors, rounded down in the event of a decimal number to the next lowest whole number. In any event, there shall be no fewer than two independent Directors.

Eni specifications

As to these requirements, Eni has further specified three points of the Code:

• "strategically important subsidiaries" in which the Director may have been a leading officer are identified (Criterion 3.C.1.b);
• the amount of "additional remuneration" that could compromise the independence of a non-executive Director has been established in the amount of 30% of "fixed remuneration" (Criterion 3.C.1.d)102;
• "close relative" was defined to include spouse, relatives and relatives-in-law within the second degree of kinship (Criterion 3.C.1.h).

Board assessments

The Board of Directors assesses the independence of Directors, after verification by the Nomination Committee, based on the criteria established by the Consolidated Law on Financial Intermediation and on the requirements set forth in the Corporate Governance Code.

Upon appointment, periodically thereafter, and where necessary owing to specific events that could affect their independence, the non-executive Directors must provide statements that they satisfy the independence requirements and the Board assesses the independence of these Directors, taking account of all the above criteria and prioritising substance over form, as required by the Corporate Governance Code. The Board also evaluates the independence of Directors when circumstances arise that could affect their independence. The Nomination Committee is responsible for enquiries connected with the Board's verification that the Directors satisfy the independence requirements.

In particular, the following assessments of independence of standing Directors were conducted:

• on April 13, 2017, shortly after its appointment, the Board of Directors, on the basis of statements made by the Directors and other information available to the Company, determined that Chairman Marcegaglia and Directors Gemma, Guindani, Litvack, Lorenzi, Moriani and Trombone satisfy the independence requirements established by law, as referenced in Eni's By-laws. Furthermore, Directors Gemma, Guindani, Litvack, Lorenzi, Moriani and Trombone were deemed independent by the Board pursuant to the criteria and parameters recommended by the Corporate Governance Code. Chairman Marcegaglia, in compliance with the Corporate Governance Code, could not be deemed independent as she is a key officer of the Company103;
• at its meetings of February 15, 2018 and most recently February 14, 2019, based upon the investigation performed by the Nomination Committee on the basis of the statements of the Directors and the information available to the Company, the Board of Directors confirmed the previous conclusion.

(102) The Board also clarified that the compensation paid to the Directors for serving on the Sustainability and Scenarios Committee is not treated as additional remuneration for independence purposes, as it is for the other Committees envisaged by the Code. (103) Although the Chairman of the Board of Directors is a non-executive Director, the Code treats her as a significant representative of the Company (Application Criterion 3.C.2 of the Corporate Governance Code).

The independence requirements established by Corporate Governance Code

43

The assessment of the Board and the verification of the Nomination Committee

7 Directors of 9 are independent pursuant to law. 6 Directors of 9 are independent pursuant to Italian Corporate Governance Code

	In particular, during the last assessment, the Board confirmed that the commercial relationships between Eni and Vodafone Italy (a company of which Director Guindani is a significant officer) and between Eni and the companies of the KME Group (companies subject to a significant influence, also indirectly, by Director Moriani) are not significant for the purpose of assessing the independence, given the nature and the amounts of these relationships. The relationships were assessed on the basis of statements from the Directors and other information available to the Company, taking account of the fact that – in view of the nature of the companies referred to – the transactions between them and Eni are governed by the related parties transaction procedure and reported to the corporate bodies.
	The Board of Statutory Auditors always verified the proper application of the criteria and procedures adopted by the Board in assessing the independence of its members.
	The assessments of the Board are reported in the tables attached to this Report.
	Integrity requirements, reasons for ineligibility and incompatibility
Requirements established by law	The Consolidated Law on Financial Intermediation specifies that individuals who perform management and administration functions in listed companies must fulfil the integrity requirements established for members of control bodies in the guidelines issued by the Minister of Justice pursuant to Art. 148 of the Consolidated Law on Financial Intermediation104.
	In particular, Art. 17.3 of the By-laws, in transposing this provision, establishes that all candidates for the position of Director must fulfil the integrity requirements specified in current regulations. In addition, the Directors are required to fulfil additional specific requirements established by any special rules applicable to them.
Periodic evaluation of the Board	The same provision also requires the Board to periodically evaluate the independence and integrity of Directors and ascertain the absence of circumstances that would render them ineligible or incompatible.
	Pursuant to Art. 17.3 of the By-laws, if a Director does not or no longer satisfies the independence and integrity requirements declared and established by law or if circumstances arise that render him ineligible or incompatible, the Board shall declare that the Director has forfeit the position and replace him, or shall invite him to rectify the circumstances rendering him incompatible by a deadline set by the Board itself, on penalty of forfeiture.
Nomination Committee is responsible for enquiries	The Nomination Committee is responsible for enquiries connected with the periodic verification that the Directors satisfy the integrity requirements and the absence of circumstances that would render them ineligible or incompatible.
	Upon appointment and thereafter on a periodic basis, the Directors are required to issue statements that they satisfy the integrity requirements under applicable law, as well as the absence of grounds for ineligibility, incompatibility or forfeiture, and the Board verifies that the integrity requirements have been satisfied, in accordance with current regulations. The appointed Directors must notify the Company if they should no longer satisfy the independence and integrity requirements or if cause for ineligibility or incompatibility should arise.
The evaluations carried out	At its meetings of April 13, 2017 and, after investigation by the Nomination Committee, during the meetings of February 15, 2018 and February 14, 2019, the Board of Directors – on the basis of the statements made and the information available to the Company – verified that the integrity requirements have been satisfied by all the Directors and that there are no circumstances rendering any of the Directors ineligible or incompatible or at risk of forfeiture, including with regard to any Eni holdings in financial, banking and/or insurance companies.

(104) Ministerial Order No. 162 of March 30, 2000.

Eni Corporate Governance and Shareholding Structure Report 2018

Policy of the Board of Directors on the maximum number of offices held by its members in other companies

With its resolution of April 13, 2017 (confirming the guidelines established on September 17, 2015), the Board of Directors specified the general criteria for determining the maximum number of management and control offices that can be held by its members in other companies that are compatible with effective performance of their role as Director of Eni.

The Board resolved that:

• an executive Director should not hold the office of: (i) executive Director in any other company listed on an Italian or foreign regulated stock market105, or in any financial106, banking or insurance company or in a company with shareholders' equity exceeding €10 billion and (ii) non-executive Director or Statutory Auditor (or member of another controlling body) in more than one of the aforesaid companies; (iii) non-executive Director in another issuer of which a Director of Eni is an executive Director107;
• a non-executive Director, in addition to the office held in Eni, should not hold the office of: (i) executive Director in more than one of the aforesaid companies and non-executive Director or Statutory Auditor (or member of another controlling body) in more than three of the such companies; (ii) non-executive Director or Statutory Auditor (or member of another control body) in more than five of such companies; (iii) executive Director of another issuer of which an executive Director of Eni is a non-executive Director.

The limit on multiple offices excludes offices held in Eni Group companies.

If these limits are exceeded, the Director will promptly inform the Board, which will assess the situation in light of the interests of the Company and will call upon the Director to take action in accordance with its decision.

In any case, before taking up the office of director or statutory auditor (or member of another control body) in another company that is not a direct or indirect subsidiary or associated company of Eni, the executive Director shall inform the Board of Directors, which will prohibit him from taking up the office where it believes such to be not compatible with the functions attributed to the executive Director and with the interests of Eni. The rules applicable to executive Director also apply to Chief Operating Officers, if any, with the exception of the prohibitions on

cross-directorships.

On the basis of information provided, the Board of Directors following its appointment and periodically, after investigation by the Nomination Committee, verified that the Directors have complied with the aforementioned limits on multiple offices in its meetings of February 15, 2018 and February 14, 2019.

Information on the number of offices relevant for the purposes of the limits on multiple offices held by Board members, as resulting from the most recent verification of February 14, 2019, is available in the chart attached with this Report.

The section of the Report on Board Review provides information on the results of such review with respect to whole level of commitment, motivation and participation of the Directors in Board and Committee meetings. In addition, the above chart also shows how many Board and Committee meetings each Director attended.

(107) Criterion 2.C.5 of the Corporate Governance Code.

The executive Director

The non-executive Director

The assessment of the Board and the previous verification of the Nomination Committee

⁽¹⁰⁵⁾ In its meeting on February 15, 2018, acting on the proposal of the Nomination Committee, the Board specified, in accordance with Criterion 1.C.2 of the Corporate Governance Code, that the listed companies relevant for the purposes of the limits on multiple offices are companies listed on regulated markets.

⁽¹⁰⁶⁾ For the purposes of assessing the number of offices held, financial companies are those companies defined under Art. 106 of Legislative Decree No. 385/1993 (Consolidated Law on Banking) and companies that provide investment or collective portfolio management activities or services pursuant to the Consolidated Law on Financial Intermediation.

Powers and responsibilities

The Board of Directors has been granted the broadest powers for the ordinary and extraordinary administration of the Company to pursue its purpose.

On April 13, 2017, the Board of Directors confirmed Claudio Descalzi108 as Chief Executive Officer and General Manager, granting him the broadest powers for the ordinary and extraordinary administration of the Company, excluding those the Board reserved solely to itself and those that cannot be delegated by law.

At that same meeting, the Board also confirmed, in accordance with the Corporate Governance Code for listed companies, that the Head of Internal Audit will report to the Board, and on its behalf, to Chairman Emma Marcegaglia, without prejudice to his being functionally subject to the authority of the Control and Risk Committee and the CEO, as Director in charge of the internal control and risk management system. In addition, the Board also decided that the Chairman shall perform her duties under the By-laws as legal representative managing institutional relationships in Italy, together with the CEO.

In accordance with the resolution on reserved powers, the Board: Reserved powers of the Board

• 1) defines the system and rules of corporate governance for the Company and the Group and approves the Corporate Governance and Shareholding Structure Report, after consulting with the Control and Risk Committee with regard to the internal control and risk management system. It approves the guidelines for the internal regulatory system, the policies and, usually, the compliance and governance Management System Guidelines. After consulting with the Control and Risk Committee, it adopts rules on the transparency and the substantive and procedural fairness of transactions with related parties and those in which a Director or a Statutory Auditor holds a personal interest or an interest on behalf of third parties, assessing on an annual basis whether any revision is needed. At the proposal of the CEO, it also adopts a procedure for the internal handling and the disclosure of Company documents and information, particularly inside information;
• 2) establishes the Board's internal Committees, which provide recommendations and advice, and appoints their members and Chairmen, determines their duties and remuneration and approves their rules of procedure and annual budgets;
• 3) acting on the proposal of the Nomination Committee, it expresses its policy on the maximum number of director or statutory auditor positions that can be held by its members in any other listed company, whether Italian or foreign, or in any financial, banking or insurance company or in a company of significant size that are compatible with the effective performance of their role as Director, taking into account the positions held on the Board's internal Committees as well;
• 4) delegates and revokes powers to/from the Chief Executive Officer and the Chairman, establishing the limits and methods for exercising these powers and determining, after examining the proposals of the Remuneration Committee, and consulting with the Board of Statutory Auditors, the remuneration connected with these duties. The Board may impart directives to the delegated bodies and itself undertake any operations falling within the delegated powers;
• 5) establishes the basic guidelines for the organisational, administrative and accounting structure of the Company (including the internal control and risk management system), its strategically important subsidiaries and the Group as a whole. It evaluates the adequacy of the organisational, administrative and accounting structure, of the Company, its strategically important subsidiaries and the Group as a whole, put in place by the Chief Executive Officer;
• 6) after examining the proposals of the Control and Risk Committee, it establishes the guidelines for the internal control and risk management system109 to ensure that the main risks of the Company and its subsidiaries are correctly identified, measured, managed and monitored, furthermore determining the degree of compatibility of such risks with a management consistent with identified corporate objectives. It establishes the financial risk limits for the Company. Having first received the opinion of the Control and Risk Committee it (i)

(108) Claudio Descalzi was appointed Chief Executive Officer of the Company for the first time on May 9, 2014. From 2008 to May 2014 he was the Chief Operating Officer of the Exploration & Production Division of Eni SpA.

(109) The Board also established that the Chairman of the Board must be consulted during the process of approval by the Board of Directors of the guidelines for the internal control and risk management system, with regard to the part on Internal Audit activities.

examines the main risks facing the Company, identified by taking into account the nature of the business of the Company and its subsidiaries, as reported by the Chief Executive Officer at least once every three months and (ii) every six months evaluates the adequacy of the internal control and risk management system with regard to the nature of the business and its risk profile, as well as its effectiveness;

• 7) at least annually, it approves the Audit Plan prepared by the Head of the Internal Audit Department, having first received the opinion of the Control and Risk Committee and in consultation with the Board of Statutory Auditors and the Chief Executive Officer110. Having first received the opinion of the Control and Risk Committee and in consultation with the Board of Statutory Auditors, it evaluates the findings contained in the suggestion letter, if any, of the audit firm and in its report on the fundamental issues that arose during the statutory audit;
• 8) defines, based upon a proposal of the Chief Executive Officer, the strategic guidelines and objectives of the Company and of the Group, including sustainability policies. It examines and approves the budgets, the strategic, industrial and financial plans of the Group, periodically monitoring their implementation, as well as agreements of a strategic nature for the Company. It examines and approves the plan for the Company's non-profit activities and approves operations not included in the plan whose cost exceeds €500,000, provided that reports on operations not included in the plan and not subject to Board approval are periodically submitted to the Board, in accordance with paragraph 10 below;
• 9) examines and approves the annual financial report, which includes Eni's draft Financial Statements and the Consolidated Financial Statements, and the semi-annual and quarterly financial reports in accordance with applicable regulations111. It examines and approves the Sustainability Report not already contained within the annual financial report;
• 10) receives reports from Directors with delegated powers at Board meetings, on at least a bi-monthly basis, on actions taken in exercising their delegated powers as well as on Group activities and on atypical or unusual transactions that have not been submitted to the Board for examination and approval, as well as on the execution of transactions with related parties and those in which the Directors and Statutory Auditors hold an interest in accordance with the relevant internal procedures. More specifically, it receives a semi-annual report explaining any changes in investment transactions previously approved by the Board, in accordance with points 14.b and 14.c below, on the basis of guidelines established by the Board itself. It also receives periodic reports on the implementation of the business and financial plans;
• 11) receives report from the Board's internal Committees on at least a semi-annual basis112;
• 12) assesses general trends in the operations of the Company and the Group on the basis of information received from Directors with delegated powers, paying particular attention to conflicts of interest and comparing results – as reported in the annual financial statements and interim financial reports – with budget forecasts;
• 13) examines and approves, having received the opinion of the Control and Risk Committee, transactions by the Company and its subsidiaries with related parties as provided for in the relative procedure approved by the Board, as well as transactions in which the Chief Executive Officer holds an interest pursuant to Art. 2391, first paragraph, of the Italian Civil Code, that fall under the responsibility of the Chief Executive Officer;
• 14) evaluates and approves any transaction executed by the Company and its subsidiaries that has a significant impact on the Company's strategy, performance and financial position. The Board ensures compliance with the principle of operational autonomy with specific regard to the listed companies and companies subject to unbundling regulations. It also ensures the confidentiality of transactions between said subsidiaries and Eni or third parties for the protection of the subsidiaries' interests.

(110) The Board also established that the Chairman of the Board must be consulted in approving the Audit Plan.

(111) Legislative Decree No. 25/2016, transposing Directive No. 2013/50/EU, in force as of March 18, 2016, has eliminated the obligation of publishing quarterly financial results. In accordance with Art. 82-ter of the Consob Issuers' Regulation, as most recently announced to the market in a press release on January 29, 2019 concerning the "2019 Financial Calendar", Eni plans to announce, on a voluntary basis, its consolidated quarterly results each year following approval by the Board of Directors due to be published on the dates indicated in the financial calendar. The results will be communicated in line with the Company policy of providing the market with regular information about its financial and operating performances considering the disclosure policy followed by peers that are reporting on a quarterly basis. The results will include, at the least, information on: operating profit (for the group and by sector); adjusted operating profit (for the group and by sector); net profit (for the group), adjusted net profit (for the group), net financial position; shareholders' equity; leverage. (112) Since 2012, at each Board meeting the Chairmen of the Committees report to the Board on the most important issues addressed by the Committees in their most recent meetings.

Transactions with a significant impact include the following:

• a) acquisitions and disposals of equity investments, companies or business units, mineral and property rights, transfers of assets, mergers, demergers and liquidations of companies exceeding €100 million, without prejudice to Art. 23.2 of the By-laws;
• b) investments in fixed assets exceeding €300 million, or less if of particular strategic importance or if exposed to particular risk;
• c) any exploration initiatives and portfolio operations in the E&P sector in new Countries;
• d) sale and purchase contracts relating to goods and services other than investments and gas supplies with a total price exceeding €1 billion – except for ordinary business operations – or of a duration exceeding twenty years; gas supply contracts, or modifications to such contracts, in the amount of at least 3 billion cubic metres per year and with a ten-year duration;
• e) financing granted to entities other than subsidiaries: (i) for amounts exceeding €200 million, if the amount is proportionate to the interest held or, (ii) in any amount, if to unrelated companies or the amount is not proportionate to the interest held;
• f) issuing by the Company of unsecured and secured guarantees to entities other than subsidiaries: (i) for amounts exceeding €200 million, if in the interest of the Company or of Eni subsidiaries or associated companies, as long as the guarantee is proportionate to the interest held, or (ii) in any case, if the guarantees are issued in the interest of associated companies and the amount is not proportionate to the interest held. The Board delegates joint power to the Chief Executive Officer and to the Chairman to issue guarantees referred to in point (i) if the amount is between €100 million and €200 million;
• g) Eni SpA intermediation agreements;
• 15) appoints and removes acting upon a proposal of the Chief Executive Officer and in agreement with the Chairman and in consultation with the Nomination Committee – the Chief Operating Officers and grants their associated powers. In the case of appointment of the Chief Executive Officer as General Manager, the proposal is made by the Chairman;
• 16) appoints and removes acting upon a proposal of the Chief Executive Officer and in agreement with the Chairman, in consultation with the Nomination Committee, and subject to the approval of the Board of Statutory Auditors – the Officer in charge of preparing financial reports (Financial Reporting Officer), and ensures that he has adequate powers and means to carry out his statutory duties and monitors compliance with the administrative and accounting procedures established by the abovementioned officer;
• 17) appoints and removes, acting upon a proposal of the Chairman, in agreement with the Chief Executive Officer and having received the favourable opinion of the Control and Risk Committee, and in consultation with the Board of Statutory Auditors and the Nomination Committee, the Head of Internal Audit Department, ensuring that he has adequate resources to carry out his duties and establishing his remuneration structure in accordance with the Company's remuneration policies, as well as approving the internal audit guidelines113. The Head of Internal Audit Department reports hierarchically to the Board and, on its behalf, to the Chairman, without prejudice to its functional dependence on the Control and Risk Committee and on the Chief Executive Officer, in his capacity as Director in charge of the internal control and risk management system;
• 18) appoints, acting upon a proposal of the Chief Executive Officer, in agreement with the Chairman and following consultation with the Nomination Committee, and having received the opinion of the Board of Statutory Auditors, the members of Eni Watch Structure (pursuant to Italian Legislative Decree No. 231/2001) determining its composition;
• 19) ensures the designation of a manager responsible for shareholders relations;
• 20) examines and approves, acting upon the proposal of the Remuneration Committee, the Remuneration Report and, in particular, the remuneration policy for Directors and key management personnel to be presented to the Shareholders' Meeting called to approve the financial statements. After examining the proposals of the Remuneration Committee, it also establishes the criteria for the remuneration for the senior executives of the Company and of the Group and implements the share-based or financial instrument-based remuneration plans approved by the Shareholders' Meeting;

(113) The guidelines for Internal Audit activities (the Internal Audit Charter) are approved by the Board of Directors, on a proposal of the Chairman of the Board of Directors, in agreement with the Director in charge of the internal control and risk management system (the Chief Executive Officer) and having consulted the Control and Risk Committee.

• 21) decides acting upon a proposal of the Chief Executive Officer on the exercise of voting rights and, in consultation with the Nomination Committee, on the appointment of members of corporate bodies of the strategically important subsidiaries. In the case of listed companies, the Board must guarantee compliance with the provisions of the Corporate Governance Code that fall under the competence of the Shareholders' Meeting;
  • 22) formulates proposals to present to the Shareholders' Meeting;
  • 23) examines and decides on other issues that Directors with delegated powers believe should be presented to the Board due to their particular importance or sensitivity.

In accordance with Art. 23.2 of the By-laws, the Board also decides upon: mergers and proportional spin-offs of companies in which the Company's shareholding is at least 90%; the establishment and closing of secondary offices; and the amendment of the By-laws to comply with regulatory provisions.

For the purpose of the resolution referred to above and the application of the recommendations of the Corporate Governance Code that Eni has adopted, the term "strategically important subsidiaries" at the date of the resolution refers to Eni International BV and Versalis SpA114.

Pursuant to Art. 27 of the By-laws, the Chairman of the Board presides over the Shareholders' Meeting, convenes and chairs meetings of the Board of Directors and verifies that resolutions passed by the Board are implemented.

With regard to the recommendations in Art. 1 of the Corporate Governance Code, in addition to the general provisions referred to in the resolution on reserved powers, the Board:

• on January 17, 2019 evaluated the organisational, administrative and accounting structure of the Company, its strategically important subsidiaries and the Group as prepared by the Chief Executive Officer, finding it adequate;
• on March 14, 2019 approved the 2019-2022 Strategic Plan;
• for the purpose of assessing developments in operations, on the occasion of its examination of the financial reports and, most recently, on February 14, 2019, on the occasion of the approval of the 4th Quarter 2018 results, compared the results achieved with the budget (first year of the 2018- 2021 Strategic Plan);
• on March 14, 2019, having considered the Report of the Financial Reporting Officer (FRO) the Reports of the Control and Risk Committee, the Report on administrative and accounting structure, the Report on the organizational structure as regards the part on the Internal Control and Risk Management System (ICRMS) organizational structure, the Report on risks, the Report on the respect of the financial risk limits and the Integrated Compliance Report, and having consulted with the Committee, evaluated as positive: (i) the adequacy and effectiveness of the ICRMS in relation to the nature of the Company and its risk profile, as well as the consistency with the corporate objectives; (ii) the adequacy of the powers and resources available to the FRO as well as compliance with the administrative and accounting procedures prepared by the same115.

During the year the Board also decided on transactions of significant strategic or financial importance for the Company, as identified in the resolution on reserved powers.

The primary internal regulations approved by the Board of Directors, particularly those on compliance and governance, are described in the "Internal Control and Risk Management System" section of this Report.

Meetings and running of meetings

At the meeting held on April 13, 2017, the Board of Directors approved the rules on its operation and organisation, including the procedures for calling and running its meetings.

Strategically important subsidiaries

Evaluations and decisions of the Board

Board Rules

⁽¹¹⁴⁾ Among the strategic subsidiaries was also identified Saipem SpA. Since January 22, 2016, however, Eni no longer exercises sole control over Saipem, pursuant to art. 93 of the Consolidated Law on Financial Intermediation. However, the Board of Directors confirmed its competence to resolve on the exercise of voting rights and on the appointments of the members of the corporate bodies of Saipem SpA. For more information, please refer to the section "Material agreements that would become effective, be modified or extinguished in the event of a change of control of Eni" of this Report".

⁽¹¹⁵⁾ For more information, please refer to the section "Internal Control and Risk Management System" of this Report.

Notice of meeting and documentation	In particular, Board meetings are called by the Chairman who, having examined the proposal of the CEO, determines the agenda and usually sends it five days prior to the scheduled date of the meeting to the Directors, standing Statutory Auditors and the Magistrate of the Court of Auditors appointed to monitor the financial management of Eni and his replacement.
	Normally, at the same time the notice calling the meeting is sent and, in any case, no more than three days prior to the date of the meeting, any documentation relating to the items on the agenda is made available, with the assistance of the Board Secretary, to the Directors, standing Statutory Auditors and the Magistrate of the Court of Auditors.
	When necessary and urgent, the notice calling the meeting may be sent at least 12 hours in advance of the scheduled meeting time.
	During the year, the time requirements in the Rules for the notice calling the meeting and the documentation relating to items on the agenda, apart from rare exceptions, have been respected.
Information to Directors: the role of the Chairman	The Chairman, with the assistance of the Secretary, ensures the adequacy, completeness and clarity of the information, including those not in connection with a Board meeting, submitted or forwarded to the Board and may request to this end, from the Chief Executive Officer, the appropriate changes or additions.
	Where it was not possible to provide the necessary information sufficiently in advance, the Chairman made sure that adequate and precise explanations were provided during Board meetings.
	The Board Review for 2018 found general appreciation of the timeliness of information flows. In particular, it recognised the alignment of Eni with the recommendation of the Corporate Governance Committee with regard to: (i) adequacy of information flows, both due to the adequacy of the notice period and the actual observance of the notice; (ii) effective compliance with the requirements of confidentiality without compromising the adequacy and timeliness of the information flows that precede board meetings.
	Special attention is devoted to ensuring the confidentiality of the information, with the creation of a section of the Eni website with access reserved to the Directors and the Statutory Auditors where they can review the documentation concerning Board and Committees activities.
	The By-laws allow Board meetings to be held via videoconferencing and teleconferencing, and these procedures are specifically governed in the rules.
Attendance of managers	Managers of the Company and of its subsidiaries normally attended Board meetings to provide information on matters on the agenda116. Specific information is also provided on individual sectors in which the Company and the Group operate.
Internal regulations governing Transactions involving interests of Directors and Statutory Auditors and transactions with related parties	In accordance with the provisions of Art. 2391 of the Italian Civil Code and the internal regulations governing "Transactions involving interests of Directors and Statutory Auditors and transactions with related parties"117, before each item on the Board meeting's agenda is discussed, each Director is required to disclose whether he holds any personal interest or interest on behalf of third-parties in relation to the matters or issues to be discussed, clarifying their nature, terms, origin and extent.
Meetings in 2018	In 2018, the Board of Directors met 12 times, each meeting lasting an average of 3 hours and 58 minutes, and with an average participation rate of 99.1% of the Directors.
	The tables accompanying this Report show the participation rate for each Director at Board meetings and at the meetings of those Committees of which he is a member.

(116) In accordance with the recommendations of Criterion 1.C.6 of the Corporate Governance Code.

(117) For more information, please refer to the relevant section of this Report.

51

In 2019, there have been three meetings held as of March 14, 2019. A further 9 meetings are scheduled to be held before the end of the year.

Pursuant to the Stock Exchange Rules, a public announcement is made within 30 days of the close of the previous financial year of the annual calendar of events (the "financial calendar"), specifying, among other things, the dates of the Board of Directors meetings called to examine the draft annual financial statements and interim financial reports required by applicable regulations, any preliminary financial statements and any other additional periodic financial disclosures118, as well as the date of the Shareholders' Meeting to approve the financial statements for the year. The announcement also includes the dates of Board meetings called to determine the interim dividend payable for the year and to submit a proposal to the Shareholders' Meeting for the balance of the dividend, accompanied by the associated distribution and ex-dividend dates. The financial calendar is available on Eni's website, in the "Investors" section.

In 2018, in view of the frequency of Board meetings, the independent Directors had occasions to meet informally, to exchange views and hold discussions. The issues dealt with in this section were examined very closely during the annual Board self-assessment, which are addressed in a specific section of this Report. Following the Board Review, the consensus conclusion has been that informal meetings among the independent Directors are useful, despite the absence of formal meetings.

Board Secretary and Corporate Governance Counsel

With the approval of the Rules for Board operations referred to in the previous section and in line with the recommendations of the Corporate Governance Code, the Board specified the requirements for and duties of the Secretary, who also serves as Corporate Governance Counsel, providing advice to the Board and the Directors.

Specifically, under the rules governing the Board's operation, the Secretary must meet the necessary requirements of professionalism, experience, independence of judgment, and must not have any conflicts of interest.

The Secretary reports directly and functionally to the Board and, on its behalf, to the Chairman. The duties of the Secretary are set out in the relevant Charter annexed to the aforementioned Rules.

More specifically, he assists the Chairman in the preparation for Board meetings and Shareholders' Meetings, in the drafting of their resolutions, in ensuring the adequacy, completeness and clarity of the information flows directed to the Board, in communication with the Directors, in the organisation of the Board Induction and Board Review, coordinates the secretaries of the Board Committees and handles the minutes of the Board meetings. He also assists the Chief Executive Officer in his dealings with the Board.

He also lends assistance and independent legal advice (regarding management) to the Board and the Directors in matters of corporate governance and on their powers, rights, duties and obligations, to ensure the proper exercise of their powers, protect them from any liability and ensure that the interests of all shareholders and other stakeholders considered by the system of corporate governance of the Company are taken into account.

The Secretary may carry out other functions within the Company provided they do not impair his independence of judgment towards the Board or the regular performance of his duties. In particular, on behalf of the CEO, he may carry out or supervise the functions of the aforementioned Corporate Affairs and Governance Department and assume its helm.

The Chairman ensures that the Secretary has adequate authority, tools, organisational structure and staff to exercise his functions, monitors the independence of the Secretary and determines his salary, in line with the Company's policies for senior management.

The financial calendar

Meetings of Independent Directors in 2018

Since May 2014, the Board Secretary has also served as Corporate Governance Counsel

The Charter and duties

Powers and resources

(118) For more details, refer to the note on this matter in the section above on Board "Powers and Responsibilities".

The Board, following the proposal of the Chairman, establishes the annual budget allocated to the Secretary, separate from that relating to any other duties, over which the Secretary has autonomous spending power.

The Secretary reports annually to the Board on the use of the budget. He also reports periodically to the Board on the functioning of Eni's corporate governance system. This report allows the Board to regularly monitor the Company's corporate governance model by comparing it with the primary sector studies, choices made by peers and corporate governance innovations found in foreign codes and the standards issued by institutional bodies, noting any areas needing further improvement in the Eni system.

Board Review and advice for shareholders on the composition of the Board of Directors

The external advisor	Board Review for 2018 With regard to 2018, in accordance with international best practices and the provisions of the Corporate Governance Code, the Board of Directors launched, for the thirteenth straight year, a self assessment programme ("Board Review") for the Board of Directors and its Committees.
	As usual, and in line with the governance solutions adopted by Eni, the Board Review was conducted with the support of an external advisor to ensure objectivity in the process. In line with the duties assigned to it by the Board and with the Corporate Governance Code recommendations, the Nomination Committee played a supervisory role during the Board Review process.
	Following last year decision to grant the engagement – for a term of three years – to Egon Zehnder, an advisor that also provides Eni and its subsidiaries with "management appraisal" and "executive search" services, the Board Review was performed in full methodological consistency with 2017, also taking into account the recommendations of the Corporate Governance Committee in the letter of the Chairman of the Committee in December 2018119, and benefitting from the usual comparison with best practices ensured by the advisor.
	The Board Review was begun in the autumn of 2018 and completed in February 2019. As established in the Corporate Governance Code, the Board Review examined the size, level of operation and composition of the Board and the Committees, taking into account the professional skills, experience, particularly management experience, diversity, including gender diversity, of the Directors and their seniority.
Self-assessment process Comparison with best practices, focus on the Corporate Governance Committee recommendations and presentation of results to the Board	The self-assessment process is carried out in the following phases: - compilation by all the members of the Board of Directors of a self-assessment questionnaire specifically structured on Eni peculiarities and on the outcomes of the board review of the first year, in order to allow a comparison of trends with the previous year and verify further progress. For each topic, the questionnaire left adequate space for comments and suggestions, in order to enhance the individual contribution of each Director also by reporting any issues worthy of further study; - in-depth individual discussions with the Chairman of the Board of Directors, the Chief Executive Officer, an Independent Director120, the Chairman of the Board of Statutory Auditors and the Secretary of the Board; - analysis by the advisor of the information that came out of the answers to the questionnaires and the interviews; - preparation of a final report on the results that had emerged, including in the light of comparison with best practices and with specific focus on the recent recommendations of the Corporate Governance Committee; presentation of the results and discussion in the Board meeting of February 14, 2019.
The results of the Board Review	In detail, the outcomes of the board review confirmed, in substantial continuity, all the areas of strength and the positive elements that emerged from the previous assessment. That is:
	(119) For more information, please refer to "Observations on the letter of December 2018 of the Chairman of the Corporate Governance Committee" in the section "Compliance with the Corporate Governance Code for Listed Companies" of this Report. (120) The individual discussion was carried out with the independent Director Lorenzi, Chairman of the Control and Risk Committee,

elected from the minority slate.

• (i) adequate size and qualitative-quantitative profile of the Board of Directors well balanced in terms of mix of skills and experience as well as diversity in the different meanings set out in the Corporate Governance Code, with particular reference to gender, age and experience (including managerial), independence and tenure in the role, skills and professionalism;
• (ii) constant attention to all the aspects pertaining to the concept of independence (number of independent executives, effective management of situations of potential conflict of interest, substantial – as opposed to only formal – independence); moreover, alignment with the recommendation of the Corporate Governance Committee (December 2018) regarding the assessment of the independence of Directors121;
• (iii) induction activities and continuing training widely appreciated, with particular reference to the investment in training carried out following last year's board review, through visits to operating sites;
• (iv) operating mechanisms of the Board and effective and efficient decision-making processes; full support of Eni structures and effective and timely contribution of the Secretary of the Board;
• (v) information flow up to expectations, in terms of synthesis, timing and completeness of the documentation; clarity and effectiveness of the presentations and quality of the information provided by the Chief Executive Officer to the Board. Alignment with the recommendation of the Corporate Governance Committee (December 2018) regarding pre-board meeting information122;
• (vi) effective leadership on the part of the Chairman of the Board and the Chairmen of the Committees, as well as a well-balanced and constructive relationship between the Chairman of the Board and the Chief Executive Officer;
• (vii)in-depth analysis of the strategies both in the Board and on informal meetings between the Directors;
• (viii)effectiveness and efficiency of the risk management and governance system, adequacy and efficiency in the internal control system;
• (ix) motivation and sense of belonging expressed by all the Directors, which contribute to creating positive dynamics based on exchange and collaboration;
• (x) optimal qualitative and quantitative profile for the Committees, with a strong commitment on their part and effective contribution to the work of the Board.

The subjects of organization/human resources (in particular in relation to the development of key resources and issues related to the succession of top management) were also examined in depth, to whom the Board of Directors intends to reserve attention also in the future.

On the basis of the elements gathered and the relevant analyses conducted, Egon Zehnder decided to position Eni as a benchmark of excellence among its Peer Group.

Advice to shareholders on the composition of the Board

In accordance with the recommendations of the Italian Corporate Governance Code, in the light of the Board renewals by Shareholders' Meeting of April 13, 2017 Eni's outgoing Board of Directors, having received the opinion of the Nomination Committee and considered the results of the Board review, developed a position on the future size and composition of the Board to be presented to the shareholders prior to the Shareholders' Meeting held on April 13, 2017 called to appoint Eni's corporate bodies.

The advice was published on the Company website on March 1, 2017. The Board of Statutory Auditors concurred with the assessment of the Board.

The outgoing Board offered the following advice to the Shareholders' Meeting of April 13, 2017.

Size of the Board of Directors

The Board of Directors considers the current number of Directors, equal to nine, to be appropriate. It is the maximum established in Eni's By-laws.

(122) For more information, please refer to "Observations on the letter of December 2018 of the Chairman of the Corporate Governance Committee" in this Report.

The Board advice and the opinion of the Nomination Committee

⁽¹²¹⁾ For more information, please refer to "Observations on the letter of December 2018 of the Chairman of the Corporate Governance Committee" in this Report.

	Composition of the Board of Directors The composition needs to take account of Eni's current and future needs, as well as the necessity of maintaining a major presence for independent Directors, with a level of diversity, including in terms of gender and seniority, that takes account of the regulatory requirements applying to the upcoming term of office.
Mix of skills	The mix of skills on the Board should be well-balanced and reinforced by an understanding of Eni's business and the experience gained in the current term of office, given the complexity of the business and the need to complete the transformation begun by the current Board.
	If the number of Board members should be increased or the composition changed, it would be possible to further enhance the skill mix with: - experience in leading management positions, preferably in the industrial sector, even if not
	specifically in the Oil & Gas industry; - international management expertise gained in complex multinationals; - skills in change management, M&A and development to accompany Eni's transformation strategy, bearing always in mind the significant time and commitment required of a new Board member to fully assimilate the complexity of Eni and its diversified businesses.
Characteristics of each Director	Key characteristics of each Director: - team oriented; - well-balanced in seeking consensus; - aptness for the position; - capable of managing conflicts constructively; - capable of working effectively with management; - willingness, taking account of other professional commitments, to serve on Eni's Board Committees.
	To ensure that Directors can devote the necessary time to preparing for and participating in Board and Committees meetings, the future Board could set additional criteria with reference to the maximum number of other positions that Eni Directors may hold, considering commitments with internal Board Committees or other companies.
The Chairman	In addition to the qualifications applying to each Director, the Chairman should also possess: - authority and standing in independently representing all shareholders; - experience on chairing Boards of listed companies; - previous experience as a non-executive Director with a company of comparable complexity to Eni; - impeccable international credibility and standing.
The Chief Executive Officer	In addition to the qualifications applying to each Director, in the light of the Eni transformation strategy for the Company's future, the CEO should also possess: - experience as a Chief Executive Officer or other senior management position with listed companies of comparable complexity to Eni; - a high level of credibility and authority in Eni's key international markets; - specific know-how in Eni's key business sectors; - a track record of success in managing a large operating company (and not just a parent/ holding company); - a track record of success in managing relations with complex stakeholders (local and international) in the key markets and geographical areas in which Eni operates. Account should be taken of the need for the Chairman and the Chief Executive Officer to maintain a constructive relationship with complementary skills in order to ensure the effective operation of the Board and, more generally, the governance of the Company.
Committees	Committees It would be advisable to retain the current duties and size of the existing Committees, while rotating a number of members, even if the Board should remain unchanged, in order to diversify the contribution of those members and enhance dialogue, with a special focus on the Control and Risk Committee in

view of the commitment required to the Committee and its members.

Board Induction

In accordance with the provisions of the Corporate Governance Code regarding the effective and informed performance of each Director, the Chairman of the Board of Eni, together with the CEO, prepared a training programme (the "Board Induction") for the members of the Board as well as the Board of Statutory Auditors, immediately after their appointment on April 13, 2017123.

This programme, which entered its fourth edition in 2017, is intended to provide new Directors with in-depth knowledge of the Company's activities and organisation, the industry and legislative and selfregulatory framework in which it operates, corporate dynamics and their development and the role to be performed in relation to Eni's specific characteristics.

For the current Board, almost all of whose members were reappointed from its predecessor, the induction programme began on June 19, 2017 and also involved Eni's Statutory Auditors, with a training session focused on business issues, taking account of the suggestions received from the Directors themselves.

On June 20, 2017 visits to operational facilities were organised (the Porto Marghera refinery and the Mantua petrochemical plant). On September 14, 2017 a session on Gas & Power issues was held. In addition, in order to conduct a specific examination of the issues of greatest interest to the Board of Statutory Auditors for the new members, an additional day of presentations by Eni's top management was held, with the participation of Directors involved, with a focus on the following themes: integrated risk management, internal audit, areas of competence of the Chief Financial Officer and integrated compliance.

During 2018, in continuity with initiatives already undertaken, ongoing training sessions were held through visits to the laboratories of the upstream and renewable operating areas and to the Zohr plant in Egypt, the latter on the occasion of the Board meeting held abroad.

Moreover, regarding ESG issues please refer to the sections "Responsible and sustainable approach" and "Sustainability and Scenarios Committee" of this Report.

Remuneration Report

For information on the 2019 Remuneration Policy and the remuneration paid in 2018 to the Directors, the Statutory Auditors, the Chief Operating Officers of the Divisions and other key personnel, please refer to the Remuneration Report.

Board Committees124

At its meeting of April 13, 2017, the Board formed four internal Committees (three of which are envisaged under the Corporate Governance Code) to provide advice and offer proposals: a) the Control and Risk Committee; b) the Remuneration Committee (already Compensation Committee); c) the Nomination

(123) The Board calendar also provides for the Board to meet once a year at an operating facility abroad.

(124) Information provided pursuant to Art. 123-bis, second paragraph, letter d) of the Consolidated Law on Financial Intermediation.

Board Induction and Ongoing-training

	Committee and d) the Sustainability and Scenarios Committee. In doing so, they formed all the committees recommended by the Corporate Governance Code, as well as the Sustainability and Scenarios Committee.
The Advisory Board	Moreover, on July 27, 2017 the Board of Directors of Eni appointed an Advisory Board, chaired by Director Pagani and composed of international experts (Ian Bremmer, Christiana Figueres, Philip Lambert and Davide Tabarelli) charged with analysing, on behalf of the Board and the CEO of Eni, the main geopolitical, technology and economic trends, including issues associated with decarbonisation.
The composition of the Committees	The composition, duties and operational procedures of Board Committees are governed by their own rules, which are approved by the Board, in compliance with the criteria outlined in the Corporate Governance Code125. The Committees' rules are available on Eni's website in the "Governance" section.
	The Committees required by the Code (Control and Risk Committee, Remuneration Committee and Nomination Committee) are composed of no fewer than three members and, in any case, fewer than the number representing a majority of the Board, as indicated by the Board upon adopting the Corporate Governance Code, so as to avoid altering the Board's decision-making process.
	More specifically, the rules of: - the Control and Risk Committee indicate that it is made up of three to four non-executive Directors, all independent. The Committee may be made up of non-executive Directors, a majority of whom are independent. In the latter case, the Chairman of the Committee shall be chosen from among the independent Directors;
	- the Remuneration Committee indicate that it is made up of three to four non-executive Directors, all independent. The Committee may be made up of non-executive Directors of whom a majority shall be independent. In the latter case, the Chairman of the Committee shall be chosen from among the independent Directors;
	- the Nomination Committee indicate that it is made up of three to four Directors, a majority of whom are independent; - the Sustainability and Scenarios Committee indicate that it is made up of four or five non-executive Directors, the majority of whom are independent.
	The Nomination Committee and the Sustainability and Scenarios Committee are presently composed of non-executive Directors, a majority of whom are independent; in the case of the Control and Risk Committee and the Remuneration Committee, all members are independent Directors126. The Chairmen of all Committees are independent.
	The current composition of the Committees as approved by the Board on April 13, 2017 is as follows: - the Control and Risk Committee: Alessandro Lorenzi (Chairman), Andrea Gemma, Karina Litvack and Diva Moriani. Directors Lorenzi, Litvack and Moriani possess experience in accounting and financial or risk management matters, as required by the Corporate Governance Code, assessed by the Board at the time of appointment; - Remuneration Committee: Andrea Gemma (Chairman), Pietro A. Guindani, Alessandro Lorenzi and Diva Moriani. Directors Guindani, Lorenzi and Moriani have expertise and experience in financial or remuneration policy matters, as required by the Corporate Governance Code, assessed by the Board at the time of appointment;
	- the Nomination Committee: Diva Moriani (Chairman), Andrea Gemma, Fabrizio Pagani and Domenico Livio Trombone; - the Sustainability and Scenarios Committee: Pietro A. Guindani (Chairman), Karina Litvack, Fabrizio Pagani and Domenico Livio Trombone.
Partecipation in Committee meetings	With regard to participation in Committee meetings: - the Chairman of the Board of Statutory Auditors, or a Statutory Auditor designated by her, participates in Control and Risk Committee meetings. The Chairman of the Board of Directors and the CEO (except when it is addressing matters regarding them), the other standing Statutory Auditors and the Magistrate of the
	(125) In its meeting on April 13, 2017, the Board of Directors established the Committees and appointed their members for the new term. At

that time, the duties assigned to the previous Committees were confirmed and the Committees were asked to draft their rules and submit them to the Board (that dates of approval of the rules are reported in the subsequent sections devoted to the individual Committees). (126) The Control and Risk Committee and the Sustainability and Scenarios Committee are chaired by Directors drawn from the minority lists. Court of Auditors may also attend the meetings. Furthermore, the Chairman of the Committee, on behalf of the Committee itself, may invite other persons, including other members of the Board of Directors or the Company structure, to attend the meetings in relation to individual items on the agenda;

• the Chairman of the Board of Statutory Auditors, or a standing Statutory Auditor designated by her, participates in Remuneration Committee meetings. Other Statutory Auditors may also attend meetings. The Chairman of the Board of Directors and the CEO may attend at the invitation of the Chairman of the Committee, on behalf of the Committee itself. The Chairman of the Committee, on behalf of the Committee itself, may also invite Company managers or other persons, including other members of the Board of Directors, to attend the meeting to provide information and opinions based on their expertise on specific items on the agenda. No Director and, more specifically, no Director with delegated powers may take part in meetings of the Committee during which Board proposals regarding his remuneration are being discussed, unless the proposals regard all members of the Board Committees. They also remain subject to the rules on the composition of the Committee where the Committee is called upon to perform the tasks required under the procedure for transactions with related parties adopted by the Company;
• the Chairman of the Board of Statutory Auditors, or a Statutory Auditor designated by the former, for matters within the competence of the Board of Statutory Auditors, may participate in Nomination Committee meetings. The Chairman of the Board of Directors and the CEO may attend the meetings as well as other persons, including other Directors or members of the Company structure, who, at the invitation of the Chairman of the Committee, on behalf of the Committee itself, are called to provide information and opinions based on their expertise on specific items in the agenda;
• the Chairman of the Board of Directors and the CEO may attend Sustainability and Scenarios Committee meetings; the Chairman of Board of Statutory Auditors – or a Statutory Auditor designated by the former – may also attend the meetings. Other persons, including other Directors or members of the Company structure, at the invitation of the Chairman on behalf of the Committee, may also attend Sustainability and Scenarios Committee meetings with regard to the specific items in the agenda.

The Committee secretaries shall usually keep the minutes of their respective meetings. For specific and justified reasons, the chairman of a Committee may ask that the minutes be kept by a member of the Committee, the Board Secretary or one of their subordinates.

In the exercise of their functions, the Committees have the right to access any information and Company functions necessary to perform their duties, are provided with adequate financial resources in accordance with the terms established by the Board of Directors, and can avail themselves of external advisers. With regard to this, at the start of the year the Board allocates to the Committees the resources they request, apart from changes that may be required during the year.

The Board Secretary coordinates the meetings of the Committees with those of the Board and, in order to do this, is notified in advance of the calendar of meetings and any changes, the agendas for their meetings, and receives the notice calling the meetings and the signed minutes.

In addition, even before the recommendation of the Corporate Governance Code (Criterion 4.C.1 letter d), amended in July 2015), at each Board meeting the Chairmen of the Board Committees report to the Board on the most important issues examined by the Committees in their most recent meetings. On at least a semi-annual basis, the Eni Board of Directors receives a report from the Committees on the activities they have performed.

A detailed description of each Committee and its activities in 2018 is provided below. More information can be found in the table attached to this Report.

Control and Risk Committee

The composition, appointment and operational procedures, duties, powers, and resources of the Committee are governed by its Rules, the current version of which was approved by the Board of Directors on May 9, 2017.

Minutes of the meetings

Access to information and resources

The role of the Board Secretary

Reports to the Board issued by the Committees

For more detailed information on the Committee's duties, please refer to the section "Internal Control and Risk Management System" of this Report.

2018 meetings

Activities carried out

In 2018 the Committee met 16 times, with an average participation rate of 98.4%127. The average duration of the meetings was 3 hours and 13 minutes. So far in 2019, the Committee has met 4 times as of March 14, 2019, and is scheduled to meet another 10 times before the end of the year. The following provides a summary of the main issues tackled during 2018.

• 1) In assisting the Board of Directors, in order to oversee the activities of the Internal Audit Department, monitoring its work for independence and ensuring that it is performed with the required level of objectivity, competence and professional diligence, in accordance with the Eni Code of Ethics and international standards for the professional practice of internal auditing, among other things, the Committee reviewed:
  • the Integrated Audit Plan and the Budget for Eni's Internal Audit Department for 2019, expressing its opinion thereon to the Board of Directors;
  • the results of scheduled and non-scheduled internal audits, the results of monitoring the status of corrective actions planned by the operational units to tackle issues that emerged during the audits, the results of audits carried out by Eni's Internal Audit Department in response to specific requests from the control and supervisory bodies, as well as the status of other activities conducted by the Internal Audit Department (such as reports of problems, independent monitoring);
  • the Internal Audit Reports of December 31, 2017 and June 30, 2018 on the primary results of internal audits performed and on the assessment of the suitability of the Internal Control and Risk Management System for achieving an acceptable overall risk profile, as well as the satisfaction of independence requirement of the Head of the Internal Audit Department;
  • the proposed amendments to the Management System Guideline "Internal Audit" as well as the changes made to the Internal Audit Charter, and with reference to this last document, expressed a favorable opinion on approval by the Board of Directors.
• 2) In performing its duties with respect to the internal control system as applied to the financial reporting model, during periodic meetings with the Chief Financial Officer (CFO), also in his capacity as the officer in charge of preparing financial reports (the "Financial Reporting Officer" or "FRO") and the Company's administrative structures, and the audit firm in attendance, the Committee reviewed:
  • the reports of the CFO/FRO on: (i) Eni's administrative and accounting structure at December 31, 2017 and at June 30, 2018; (ii) on the internal control system as applied to financial reporting at December 31, 2017 and June 30, 2018, on the basis of which it expressed its favourable opinion to the Board on the appropriateness of the powers and resources assigned to the FRO and on the actual compliance with administrative and accounting procedures for the purposes of the Board's supervisory function;
  • the key aspects of the individual and consolidated financial statements at December 31, 2017 of Eni and Eni's half-year consolidated financial report at June 30, 2018. Before the topic was submitted to the Board of Directors, it examined impairment test methodology and findings as well as the major issues related to the application of the accounting principles in preparation for the drafting of the 2018 Annual Report;
  • the main aspects of the Annual Report on Form 20-F 2017;
  • the content of the 2017 management letter of the audit firm, giving its favourable opinion prior to subsequent examination by the Board and the statement on the status of the audit pursuant to SOA 404 and the planning of 2018 auditing activities;
  • the main contents of the Report of the Board of Statutory Auditors on the results of the audit of the 2017 Annual Financial Report and on the contents of the Auditor's Additional Report.

Moreover, the Committee examined: (i) the contents of Eni Consolidated Non-Financial Information 2017, included in the Management Report; (ii) the "Consolidated Report on Payments to Governments" for 2017 by Eni SpA, its consolidated subsidiaries and companies consolidated proportionately (EU Accounting Directive 2013); (iii) the Tax Strategy Guidelines adopted by Eni, in view of their subsequent approval by the Board of Directors; (iv) the "Country by Country report" for 2017.

(127) For information on the participation of the Board of Statutory Auditors in the meeting of the Control and Risk Committee and other board committees please refer to the section "Meetings and operational procedures" of the Board of Statutory Auditors of this Report.

The Committee was also informed by the Board of Statutory Auditors of the outcome of the tender for the assignment of the legal audit of the financial statements, the review of the internal control system pursuant to the SOX regulation (Sarbanes Oxley Act) and additional tasks by the Eni group for the nine-year period 2019-2027.

• 3) In supporting the Board of Directors in conducting the assessments and making decisions concerning risk management, including with regard to potentially prejudicial situations, the Committee conducted an in-depth analysis of specific situations at the request of the Board. Among other things, in the context of its periodic meetings with the Legal Affairs Department, the Committee closely examined the main legal issues and received updates on developments in the major pending legal proceedings, particularly as concerns the possible accounting repercussions, for the purpose of performing its duties as they pertain to the process of preparing the annual and half-year financial reports.
• 4) The Committee held several meetings with the Integrated Compliance Department during which it (i) examined the periodic reports of Anti-Corruption Compliance on the support provided to the units of Eni and the subsidiaries in the areas for which it is responsible, with a specific focus on the training and business assistance activities performed; (ii) received an update on the Integrated Compliance process, in particular on the main phases that characterize the Compliance Model; (iii) examined the outcomes of the project to revise the 231 framework of foreign subsidiaries and (iv) was informed about the changes made to the document "Sensitive activities and specific control standards of the 231 Model" of Eni SpA.
• 5) The Committee was periodically informed of the status of the updating of the New Regulatory System and, meeting with the corporate units responsible for the project, examined the proposed revisions of the following Management System Guidelines (MSG) expressing a favorable opinion to the Board approval: "Privacy and Data Protection" and "Market Information Abuse (Issuers)"; it also examined the MSG "Internal Control and Risk Management System" presenting the Board with a proposal to modify the ICRMS guidelines it contained. The Committee also examined the proposal to extend the scope of application of the Eni Regulatory System to include the Italian subsidiaries pursuant to the Civil Code not classified as subsidiaries in the financial statements, expressing its favorable opinion in view of the subsequent examination by the Board of Directors.
• 6) With regard to "Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties" the Committee:
• Issued a favourable opinion on the guidance not to propose modifications to the MSG "Transactions involving interests of Directors and Statutory Auditors and transactions with related parties";
• examined a number of transactions of lesser importance on which it expressed a favorable opinion on the interest of the Company in the transactions and the appropriateness of the associated terms and conditions.
• 7) The Committee thoroughly examined specific internal control and risk management issues, including during special meetings with members of Eni's top management. Specifically, the Committee:
  • examined the extract from the Eni Organizational Structure Report with focus on the Eni Regulatory System and the ICRMS;
  • met on several occasions with the Integrated Risk Management unit, focusing among other things on the evolution of the assessments of Eni's main risks and the related treatment actions;
  • met with the Finance Department to examine the periodic reports on the management and control of financial risks and also exploring some strategic liquidity issues;
  • in the presence of the Sustainability and Scenarios Committee, he carried out in-depth studies on the management of relations with stakeholders in areas with a high risk profile;
  • met competent corporate functions for in-depth analysis on HSE issues and cyber security;
  • reviewed the reports on disciplinary action taken against employees for illegal conduct.
• 8) As envisaged in Eni's Model 231, the Committee met with the members of Eni SpA Watch Structure to review the Watch Structure's semi-annual report on its activities, including in its role as Guarantor of the Code of Ethics, and to take a closer look at certain issues of common interest with regard to the activities performed.

Remuneration Committee

Committee duties

Established by the Board of Directors for the first time in 1996, the Committee provides recommendations and advice to the Board on remuneration issues128 and specifically it:

• submits to the Board of Directors for its approval the Remuneration Report and, in particular, the remuneration policy for Directors and key management personnel to be presented to the Shareholders' Meeting called to approve the financial statements, as provided for by applicable law;
• periodically evaluates the adequacy, overall consistency and actual implementation of the adopted policy, formulating proposals on the topic for the Board of Directors;
• presents proposals for the remuneration of the Chairman of the Board and the Chief Executive Officer, covering the various forms of remuneration and benefits awarded;
• presents proposals for the remuneration of members of the Board's internal committees;
• examines the CEO's recommendations and presents proposals for the general criteria for the remuneration for key management personnel; for annual and long-term incentive plans, including equity-based plans; for establishing performance targets and assessing results for performance plans in connection with the determination of the variable portion of the remuneration for Directors with delegated powers and with the implementation of incentive plans;
• monitors the execution of Board resolutions;
• reports to the Board of Directors, during the first available meeting, through the Committee Chairman, on the most significant matters examined by the Committee during its meetings; it also reports to the Board, at least one every six months and no later than the deadline for approval of the annual and semi-annual financial reports at the Board meeting designated by the Chairman of the Board.

In the course of performing its duties, the Committee also issues the opinions required under the procedure for related party transactions in the manner specified therein129.

The Committee performs its duties pursuant to an annual plan. In carrying out its duties, the Committee may access the information and Company functions necessary to perform its duties and can avail itself of external advisors who are not in positions that might compromise their independence of judgement, within the terms and budget limits established by the Board of Directors.

The Committee reports on the procedures it adopts in performing its functions to the Shareholders' Meeting called to approve the financial statements through its Chairman or another Committee member designated by the Chairman, in accordance with the recommendations in the Corporate Governance Code and with the goal of establishing and appropriate channel for dialogue with shareholders and investors.

2018 meetings

In 2018, the Remuneration Committee met 8 times, with an average participation rate of 100% and an average duration of 2 hours and 30 minutes. At least one member of the Board of Statutory Auditors participated in each meeting, with constant participation of the Chairman of the Board of Statutory Auditors. At the invitation of the Chairman of the Committee, Company Executives and advisors also took part in specific meetings to provide information and clarifications considered necessary by the Committee to perform its enquiries.

Activities carried out

The following were issues addressed in the first half of 2018:

• the periodic review of the remuneration policy implemented in 2017 in order to prepare the proposed policy guidelines for 2018, providing for keeping the structure and criteria of remuneration of the Directors and Executives with strategic responsibilities defined in 2017 for the entire term, as regards in particular the simplified variable incentive system, as discussed in greater detail in the 2017 Remuneration Report;
• the review of Eni's results for 2017 in order to implement the short-term and long-term incentive plans using a method for the analysis of deviations specified and approved by the Committee in order to neutralize the effects, either positive or negative, of exogenous factors and to make it possible to objectively assess performance;

(128) The Committee Rules were approved, lastly, on March 15, 2018. In this event the name of the Committee has been changed from Compensation Committee to Remuneration Committee.

(129) For more information, please refer to the relevant section of this Report.

• the definition of 2018 Eni's performance targets relevant to the variable incentive plans;
• the finalisation of proposals for the annual variable incentive system for the CEO and General Manager;
• the examination of the 2018 Eni Remuneration Report;
• the examination of the outcome of engagement activities held with leading institutional investors and proxy advisors in view of the general meeting, in order to maximise shareholder consensus on the 2018 Remuneration Policy; the Chairman of the Committee also took part in the aforementioned meetings, bearing witness to the importance given by the Committee to dialogue with shareholders;
• risk assessment and scenario analysis, and related voting projections arrived at with the assistance of primary consulting firm;
• examination of the voting recommendations issued by the main proxy advisors and, following the findings, start of a further intense engagement activity with a large number of investors, to with dispatch of a letter explaining the reasons and the rationale for the choices made.

During the second part of the year, the Committee first examined the results of the 2018 shareholders' meetings, with regard to the Eni Remuneration Report, of the major Italian and European listed companies as well as Eni's Peer Group.

With regard to other main activities, the Committee:

• finalised the proposal concerning the fulfilment ("2018 attribution") of the 2017-2019 Long-Term Equity-based Incentive Plan for the CEO and General Manager and critical management personnel for business;
• examined the general criteria for defining the 2019 Engagement Plan, through the performance of preliminary analysis and segmentation activities of institutional investors at the 2018 Shareholders' Meeting;
• carried out a periodic monitoring of developments in the legislative and regulatory environment and in market standards for the representation of information on remuneration issues, with a specific focus, for 2019, on contents of the EU Directive 828/2017 ("SHRD II Directive");
• started the review of 2019 Remuneration Report Policy Guidelines, with the support of the competent Company functions.

The Committee scheduled 8 meetings for 2019, 4 of which have already been held as of March 14, 2019 date of approval of this Report, focusing on:

• ongoing review of the remuneration policies as implemented in 2018, in the light of remuneration comparison performed, in accordance with the provisions of the Corporate Governance Code (Criterion 6.C.5), also for the purposes of formulating proposed polices for 2019;
• the financial results and the determination of performance targets linked to the implementation of the short and long-term variable remuneration plans;
• the finalisation of proposals on implementing the Short-Term Incentive Plan with Deferral for the CEO and General Manager;
• review of the 2019 Remuneration Report for submission to the Board of Directors for approval;
• the examination of the outcome of engagement activities held with leading institutional investors and proxy advisors.

In the second half of 2019, the Committee will also examine, as required in the annual schedule of activities, the results of the 2019 Shareholders' Meetings and implement the Long-Term Equity-based Incentive Plan for the CEO and General Manager and for critical management personnel. It will also begin monitoring of developments in the legislative and regulatory environment, institutional investors voting policies and recommendations of leading proxy advisors, as well as the outcome of the benchmark studies on remuneration reports published in 2019 at national and international level, with the purpose of preparing the 2020 Remuneration Policy Guidelines and it will define and implement the cycle of engagement with institutional investors and leading proxy advisors.

In 2019, in addition to what is ordinarily required by its annual activity cycle, the Committee will also start ordinary activities related to the end of the term in the spring of 2020, as well as the analysis related to the preparation of Policy proposals for the new term.

Foreseen activities in 2019

Nomination Committee

Committee duties
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The Nomination Committee was first formed on July 28, 2011.

The Committee Rules, as approved by the Board of Directors on May 9, 2017, provide in accordance with the recommendations of the Corporate Governance Code that the Nomination Committee:

• assists the Board of Directors in formulating any criteria for the appointment of executives and members of the boards and bodies of the Company and of its subsidiaries, whose appointment fall under the Board's responsibilities, and of the members of the other boards and bodies of Eni Associated companies;
• provides evaluations to the Board of Directors on the appointment of executives and members of the Boards and bodies of the Company and of its subsidiaries, proposed by the Chief Executive Officer and/or the Chairman of the Board of Directors, whose appointments fall under the Board's responsibilities and oversees the associated succession plans. Where possible and appropriate, the Committee proposes, with due regard to the shareholding structure, the succession plan for the Chief Executive Officer to the Board of Directors;
• acting upon a proposal of the Chief Executive Officer, examines and evaluates criteria governing the succession plan for the Company's key management personnel;
• proposes candidates to serve as Directors in the event one or more positions need to be filled during the course of the year (Art. 2386, first paragraph, of the Italian Civil Code), ensuring compliance with the requirements on the minimum number of independent Directors and the percentage reserved for the less-represented gender;
• proposes to the Board candidates for the position of Director to be submitted to the Shareholders' Meeting of the Company, taking account of any recommendations received from shareholders, in the event it is not possible to draw the required number of Directors from the slates presented by shareholders;
• oversees the annual self-assessment programme on the performance of the Board of Directors and its Committees, pursuant to the Corporate Governance Code, doing the necessary preparations for engaging an external advisor; and, on the basis of the results of the self-assessment, provides its opinions to the Board of Directors regarding the size and composition of the Board or its Committees as well as the skills and managerial and professional qualifications it feels should be represented on the same, so that the Board itself is able to explain its position to the shareholders prior to the appointment of the new Board;
• proposes to the Board of Directors the slate of candidates for the position of Director to be submitted to the Shareholders' Meeting if the Board decides to opt for the process envisaged in Art. 17.3, first phrase, of the By-laws;
• proposes to the Board of Directors guidelines regarding the maximum number of positions as director or statutory auditor that a Company Director may hold according to the Corporate Governance Code and performs the preliminary activities for the associated periodic checks and evaluations for submission to the Board;
• periodically verifies that the Directors satisfy the independence and integrity requirements, and ascertains the absence of circumstances that would render them incompatible or ineligible;
• provides its opinion to the Board of Directors on any activities carried out by the Directors in competition with the Company;
• reports at the first subsequent Board of Directors meeting, through its Chairman, on the most significant matters examined by the Committee during its meetings. It also reports to the Board of Directors, at least once every six months and no later than the deadline for the approval of the annual and semi-annual financial report, on the activity carried out, as well as on the adequacy of the appointment system, at the Board meeting indicated by the Chairman of the Board of Directors.

2018 meetings

In 2018, the Nomination Committee met 10 times, with an average participation rate of 92.5%; the average duration of the meetings was about 1 hour and 20 minutes. In 2019, as of March 14, 2019, the Committee met 3 time and it is expected to have 3 more meetings by the end of the first half of the year.

Activities carried out

More specifically, in 2018, the Committee:

• conducted on behalf of the Board the enquiry into whether Directors satisfy the independence and integrity requirements and the absence of circumstances that would render them ineligible, incompatible or at risk of forfeiture, as well as the respect of the Board's policy on the maximum number of positions that can be held by Directors;
• expressed its assessment of the manner in which the Board Review was conducted for 2018;
• examined the issue of the appointment of members of the boards of strategically important subsidiaries and of companies on which the Board has competence, providing the Board with its assessment with regard to the issue of the appointment of the members of the Board of Directors of Saipem SpA130, Versalis SpA and Eni International BV;
• examined the managerial profile for the new Digital Department;
• examined: (i) the process and methodology used for the succession plans of positions of strategic importance; (ii) the key elements characterizing the overall succession plan with reference to key company positions; (iii) the criteria underlying succession plans and the related risk assessment of the following positions reporting directly to the Chief Executive Officer or relevant: Chief Refining & Marketing Officer, Chief Exploration Officer, Chief Upstream Officer, CEO of Versalis SpA, Chief Gas & LNG Marketing and Power Officer, CEO of Eni gas e luce SpA, SEVP Internal Audit, SEVP Legal affairs, Chief Financial Officer, Chief Services & Stakeholder Relations Officer, Chief Development, Operations & Technology Officer, CEO Syndial SpA, EVP Energy Solutions.

Sustainability and Scenarios Committee

The Board of Directors of Eni established the Sustainability and Scenarios Committee (SSC) on May 9, 2014. The Rules of the Committee were approved by the Board of Directors most recently on May 9, 2017.

The Committee provides recommendations and advice to the Board of Directors on scenarios and sustainability issues, meaning the processes, initiatives and activities surrounding the Company's commitment to sustainable development along the entire value chain, with specific reference to the following issues: the health, well-being and safety of people and communities; respect for and protection of rights, especially human rights; local development, access to energy, energy sustainability and climate change; the environment and efficiency in the use of resources; integrity and transparency; innovation.

As part of its functions of offering recommendations and advice to the Board of Directors, the Committee:

• a) examines scenarios for the preparation of the strategic plan giving its opinion to the Board of Directors;
• b) examines and evaluates the sustainability policy aimed at ensuring the creation of value over time for shareholders and all the other stakeholders in accordance with the principles of sustainable development, as well as sustainability strategies and objectives and the Sustainability Report submitted annually to the Board of Directors;
• c) examines how the sustainability policy is implemented in business initiatives on the basis of indications provided by the Board of Directors;
• d) monitors the Company's position in terms of sustainability with regard to financial markets, particularly with regard to the Company's inclusion in the leading sustainability indexes;
• e) monitors international sustainability projects as part of global governance processes and the Company's participation in such projects, designed to strengthen the Company's international reputation;
• f) examines and assesses sustainability initiatives, including in relation to individual projects, provided for in agreements with producer Countries, submitted by the CEO for presentation to the Board;
• g) examines the Company's non-profit strategy and its implementation, including in relation to individual projects, through the non-profit plan submitted each year to the Board, as well as nonprofit initiatives submitted to the Board;
• h) at the request of the Board, gives its opinion on other sustainability issues;
• i) reports at the first subsequent Board of Directors meeting, through its Chairman, on the most significant matters examined by the Committee during its meetings. It also reports to the Board, at least one every six months and no later than the deadline for approval of the annual and semi-annual financial reports, on its activities at the Board meeting designated by the Chairman of the Board.

In 2018, the Committee met 12 times. The meetings lasted an average of 2 hours and 52 minutes, with an average participation rate of 96%. In 2019, as of March 14, 2019, the Committee met 2 times and is expected to hold 8 more meetings by the end of the year.

(130) From January 22, Eni no longer exercises sole control over Saipem pursuant to art. 93 of the Consolidated Law on Financial intermediation. However, the Board of Directors confirmed its competence to decide on the exercise of voting rights and on the appointment of the members of the corporate bodies of Saipem SpA.

Committee duties

2018 meetings

Activities carried out

During these meetings, the Committee discussed the following issues: review of 2018-2021 and Long-Term Scenario, Statement on Biodiversity and water-arctic policy, IEA WEO Outlook 2017, 2018 calendar analysis and program, meeting with the competent structures for further information on managing relations with stakeholders in areas with a high risk profile, US Tight Oil performance and criticality, update of Tight Oil Scenario, focus on National Energy Strategy, italian Legislative Decree No. 254/2016 – Non-Financial Information, analysis of strategic presentations of Major, Eni For 2017 and Eni For Addendum – Decarbonisation path, 2018 non-profit budget, 2018-2021 and LT price scenario with in-depth analysis of the gas market, scope 1, 2 and 3 issues, evolution of Eni's R&D, sustainability scenarios and issues, Statement on the Modern Slavery Act 2017, decarbonisation strategy and circular economy, IEA scenario: World Energy Outlook, scenario comparison IEA vs. Eni, climate resolutions and disclosure on meeting, Review of prices 2018-2021 and LT, global trends of discoveries and FID/start-up of Oil & Gas fields, update of R&D projects and analysis of decarbonisation strategies of peers, new Long Term Positioning Initiatives Coordination structure, the renewables market, the lithium and metals market for batteries, update of the TCFD working group, Eni shareholder orientations on climate change and decarbonisation strategy, the energy transition, the electricity market, the Eni model of domestic gas, OGCI update, Oil & Gas market update, the WEF initiative "Climate Governance", Eni in sustainability indices and ratings, Eni Statement on Human Rights, Eni technologies on asset integrity, definition of SSC agenda for 2019.

Chief Operating Officers

Pursuant to Art. 24.1 of the By-laws, the Board of Directors may appoint one or more Chief Operating Officers, defining their powers, upon the proposal of the CEO, in agreement with the Chairman, subject to fulfilment of the integrity requirements specified by law. The Board periodically assesses the integrity of the Chief Operating Officers. Failure to satisfy these requirements will result in dismissal. The Chief Operating Officers are also required to comply with the rules established by the Board of Directors regarding the maximum number of offices they may hold, in accordance with the rules that apply to the CEO131.

With the resolution of May 28, 2014 (with effect from July 1, 2014), the Board of Directors established the new organisational model for Eni SpA to replace the division-based model in which Chief Operating Officers headed Eni's operational divisions. As a result of this change no Chief Operating Officers have been appointed132.

Board of Statutory Auditors133

Duties

The Board of Statutory Auditors, pursuant to the Consolidated Law on Financial Intermediation, monitors:

• compliance with the law and the Company's By-laws;
• observance of the principles of sound administration;
• the appropriateness of the Company's organisational structure for matters within the scope of the Board's authority, the adequacy of the internal control system and the administrative and accounting system and the reliability of the latter in accurately representing operations;
• the procedures for implementing the corporate governance rules provided for in the Corporate Governance Code, with which the Company complies;
• the adequacy of the instructions imparted by the Company to its subsidiaries in order to guarantee full compliance with legal reporting requirements.

(131) With the exception of the prohibition on cross-directorships.

• (132) CEO maintains the position of General Manager.
• (133) Information provided pursuant to Art. 123-bis, second paragraph, letter d) of the Consolidated Law on Financial Intermediation.

Monitoring pursuant to Consolidated Law on Financial Intermediation

In addition, pursuant to Art. 19134 of Legislative Decree No. 39/2010, the Board of Statutory Auditors, in its role as the "Internal Control and Financial Auditing Committee"135, (hereinafter also ICFAC) is responsible for:

• a) informing the Board of Directors of the outcome of the statutory audit and provide it with the report prepared by the audit firm (the so-called additional report)136, along with its own comments;
• b) monitoring the financial reporting process and submit recommendations or proposals to ensure its integrity;
• c) monitoring the effectiveness of the Company's internal quality control and risk management systems and its internal audit, regarding Eni's financial reporting, without breaching its independence;
• d) monitoring the statutory audit of the annual and consolidated financial statements, taking into account any findings and conclusions by Consob;
• e) reviewing and monitoring the independence of the audit firm, in particular the appropriateness of the provision of non-audit services137;
• f) being responsible for the procedure for the selection of auditors or of the audit firm and recommend to the Shareholders' Meeting the auditors or the audit firms to be appointed138.

In accordance with Art. 153 of the Consolidated Law on Financial Intermediation, the Board of Statutory Auditors presents the results of its supervisory activity to the Shareholders' Meeting in a report that accompanies the financial statements.

In the report, the Board of Statutory Auditors also discusses its monitoring of Eni's procedures for compliance with the principles set out by Consob concerning related parties139, as well as their respect based upon information received.

On March 22, 2005, the Board of Directors, electing the exemption granted by the Securities and Exchange Commission (SEC) to foreign issuers of securities listed on regulated US markets, designated the Board of Statutory Auditors as the body that, as from June 1, 2005, performs, to the extent permitted under Italian regulations, the functions attributed to the "Audit Committee" of foreign issuers by the Sarbanes-Oxley Act and SEC rules.

To this end, the Board of Statutory Auditors supervises the work of the audit firm charged with performing the statutory audit and providing advisory services, other audits or certifications. In this area, the activities of the Board of Statutory Auditors in its capacity as the Audit Committee are consistent with the duties assigned under the new legislation governing statutory audit cited above. In particular, the Board of Statutory Auditors:

• assesses the offers of audit firms for the award of the engagement for the statutory audit of the accounts and formulates a reasoned proposal for the Shareholders' meeting concerning the appointment or termination of the audit firm;
• approves the procedures for the prior authorisation of permitted non-audit services and assesses requests to use the audit firm for permitted non-audit services140;
• examines the periodic reports from the external auditor relating to: (a) all critical accounting policies and practices to be used; (b) all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management of the Company, ramifications of the use of such alternative disclosures and treatments, and the treatments preferred by the external auditor; (c) other material written communication between the external auditor and management;

The Board of Statutory Auditors in its role as the "Internal Control and Financial Auditing Committee"

The activities of the Board of Statutory Auditors in its capacity as the Audit Committee pursuant to US law

⁽¹³⁴⁾ As amended by Legislative Decree No. 135/2016, which transposed Directive 2014/56/EU on statutory audits.

⁽¹³⁵⁾ The responsibilities assigned under the decree to the "Internal Control and Financial Auditing Committee" are consistent and substantively in line with the duties already assigned to the Board of Statutory Auditors of Eni, with specific consideration of its role as the "Audit Committee" under the US Sarbanes - Oxley Act (discussed in further detail below).

⁽¹³⁶⁾ See Art. 11 of Regulation (EU) No. 537/2014 concerning statutory audit (hereinafter also "European regulation on statutory audit"). (137) See Arts. 10, 10-bis, 10-ter, 10-quater and 17 of Legislative Decree No. 39/2010 and Arts. 5 and 6 of the European regulation on statutory audit.

⁽¹³⁸⁾ See Art. 16 of the European regulation on statutory audit. The Board of Statutory Auditors in its capacity as the ICFAC submits a reasoned recommendation containing at least two alternatives for granting the engagement and expresses an appropriately justified preference for one of the two.

⁽¹³⁹⁾ The oversight function of the Board of Statutory Auditors is governed by Art. 2391-bis of the Italian Civil Code, Art. 4, paragraph 6 of the Consob regulation on related parties transactions, as well as the relevant internal regulations, to which a chapter of the "Internal Control and Risk Management System" section of this Report is dedicated.

⁽¹⁴⁰⁾ In accordance with the European regulation on statutory audit, non-audit services permitted under the applicable regulations may be awarded subject to approval of the ICFAC.

• formulates recommendations to the Board of Directors concerning the resolution of disputes between management and the audit firm concerning financial reporting.

In addition, the Board of Statutory Auditors in its capacity as the Audit Committee:

• examines reports from the Chief Executive Officer and the Chief Financial Officer (CFO) concerning (i) any significant deficiency in the design or operation of internal controls which are reasonably likely to adversely affect the Company's ability to record, process, summarise and report financial information and any material weakness in internal controls; and (ii) any fraud that involves management or other employees who have a significant role in the internal controls;
• approves procedures concerning: (a) the receipt, filing and processing of reports received by the Company regarding accounting issues, the internal accounting control system or the statutory audit; (b) the confidential or anonymous submission by any person, including Company employees of reports concerning questionable accounting or audit issues (so-called whistleblowing). The Board of Statutory Auditors, in its capacity as the Audit Committee, approved the "Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad"141 (most recently on April 4, 2017). The procedure, the conformity of which to best practices was checked by independent external advisors in the past, is one of the Eni anti-corruption regulations referred to in the Anti-Corruption Management System Guideline (MSG), to which it is annexed, and meets the requirements of the Sarbanes-Oxley Act, the Model 231 and the Anti-Corruption MSG itself.

Finally, the Board of Statutory Auditors is also assigned specific duties relating to nominations and compensation, among other things. These duties are described in the specific sections on those topics in this Report or in the Remuneration Report.

For more information on the role of the Board of Statutory Auditors and the coordination with the other bodies and functions, please refer to the section "Internal Control and Risk Management System" of this Report.

On June 15, 2005, the Board of Statutory Auditors approved internal rules governing its performance of the duties assigned to it under that US legislation. The text of the rules is available on Eni's website142.

Composition and appointment

Under the provisions of the Consolidated Law on Financial Intermediation, the Board of Statutory Auditors shall consist of at least three standing Statutory Auditors and at least two alternate Statutory Auditors. The Company's By-laws establish that the Board of Statutory Auditors shall consist of five standing members and two alternate members, appointed by the Shareholders' Meeting for a term of three years. They may be reappointed at the end of their term.

As with the Board of Directors and in accordance with applicable regulations, the By-laws establish that the Statutory Auditors shall be elected on the basis of slates in which the candidates are listed in numerical order. Two standing Statutory Auditors and one alternate Statutory Auditor are appointed from among the candidates of the slates submitted by non-controlling shareholders.

Pursuant to Art. 28.2 of the By-laws, in accordance with the provisions of the Consolidated Law on Financial Intermediation, the Shareholders' Meeting appoints the Chairman of the Board of Statutory Auditors from among the candidates elected from the slates other than that which received a majority of votes.

Under the provisions of the By-laws, the submission, filing and publication of slates are governed by the procedures established for the Board of Directors143 and the provisions of Consob regulations.

(142) The Rules were subsequently updated following regulatory and organizational innovations and they are available at the address: https://www.eni.com/en_IT/company/governance/board-of-statutory-auditors.page

The Board of Statutory Auditors is composed of 5 standing members and 2 alternates. Two standing members, including the Chairman, are designated by non-controlling shareholders

Statutory Auditors are appointed using a slate voting system

⁽¹⁴¹⁾ For more information, please see the section of this Report that specifically addresses this issue.

⁽¹⁴³⁾ See the section "Appointment" in the chapter on the "Board of Directors" in this Report.

67

Slates shall be divided into two sections: the first containing candidates for appointment as standing Statutory Auditors and the second containing candidates for appointment as alternate Statutory Auditors. At least the first candidate in each section must be entered in the register of auditors and have carried out statutory audit activities for no less than three years. The slates are accompanied by: (i) information identifying the shareholder or shareholders who have submitted the slate, indicating the overall percentage of shareholding; (ii) statements from shareholders other than those who hold a controlling or plurality equity interest certifying that they are not related to the latter; (iii) a personal and professional curriculum vitae; (iv) statements from each candidate certifying that they meet the requirements established under applicable regulations; (v) statements from each candidate accepting the candidacy; (vi) a list of positions held in other companies.

The election is carried out in accordance with the procedures already described for the Board of Directors, including with regard to the criteria for selecting the candidate chosen in the event of a tie vote between the slates and the proportional allocation of seats (respectively, Art. 144-sexies, paragraphs 9 and 10 of the Consob Issuers' Regulation).

The slate voting procedure only applies for the election of the entire Board of Statutory Auditors.

In the event of the replacement of a Statutory Auditor elected from the slate that received a majority of votes, the alternate Statutory Auditor from the same slate shall be appointed. In the event of the replacement of a Statutory Auditor elected from another slate, the alternate Statutory Auditor from that slate shall be appointed.

As regards the composition and appointment of the Board of Statutory Auditors, as in the case of the Board of Directors, the Extraordinary Shareholders' Meeting of May 8, 2012 amended the By-laws of the Company so as to ensure gender balance in the management and control bodies of listed companies upon their initial appointment and in the case of replacement of members during the term. These provisions are applicable to the first three appointments of these bodies subsequent to August 12, 2012. With specific reference to the Board of Auditors, the By-laws establish that if replacement results in non-compliance with gender-balance rules, the Shareholders' Meeting must be called as soon as possible to approve the necessary resolutions to ensure compliance144.

On April 13, 2017 the Shareholders' Meeting appointed the Board of Auditors for a term of three years until the date of the Shareholders' Meeting called to approve the financial statements for 2019: Rosalba Casiraghi (Chairman), Enrico Maria Bignami, Paola Camagni, Andrea Parolini and Marco Seracini, standing Statutory Auditors; Stefania Bettoni and Claudia Mezzabotta, alternate Statutory Auditors. Paola Camagni, Andrea Parolini, Marco Seracini (standing Statutory Auditors) and Stefania Bettoni (alternate Statutory Auditor) were appointed on the basis of the slate submitted by the Ministry of the Economy and Finance145, which at the time held 4.34% of the share capital and voted by the majority of the shareholders participating in the Shareholders' Meeting (i.e., about 85.64% of voting capital), equal to 53.88% of share capital (around 62.92% of the share capital was present at the vote).

Rosalba Casiraghi, Enrico Maria Bignami (standing Statutory Auditors) and Claudia Mezzabotta (alternate Statutory Auditor) were elected on the basis of the slate submitted by a group of Italian and foreign institutional investors146, which at the time held about 1.7% of the share capital and voted by the minority of the shareholders participating in the Shareholders' Meeting (i.e. about 14.25%), equal to 8.97% of share capital (around 62.92% of the share capital was present at the vote).

Rosalba Casiraghi, the first candidate for standing Statutory Auditor listed on the slate submitted by minority shareholders, was appointed as Chairman of the Board of Statutory Auditors, with the favourable vote of 32.74% of the entire share capital of the Company, equal to about 99.47% of the voting capital. Around 32.92% of the share capital took part in the vote (composed of shareholders other than the Ministry of the Economy and Finance and Cassa Depositi e Prestiti SpA).

Slates of candidates

Nomination procedure

Gender balance

Statutory Auditors appointed by 2017 Shareholders' Meeting

The Chairman of the Board of Statutory Auditors

⁽¹⁴⁴⁾ For more information, please see the "Policy for diversity and gender balance on corporate Boards" section of this Report. (145) The slate submitted by the Ministry of the Economy and Finance was as follows: Paola Camagni, Andrea Parolini and Marco Seracini, candidated as standing Statutory Auditors; Stefania Bettoni and Stefano Sarubbi, candidated as alternate Statutory Auditors. (146) The slate submitted by the institutional investors was as follows: Rosalba Casiraghi and Enrico Maria Bignami, candidated as standing Statutory Auditors; Claudia Mezzabotta, candidated as alternate Statutory Auditor.

The Remuneration

The Shareholders' Meeting also established the annual remuneration payable to the Chairman of the Board of Statutory Auditors and to each standing Statutory Auditor, in the amount of €80,000 and €70,000, respectively, in addition to reimbursement of any necessary expenses incurred while performing their duties.

The following provides some details on the personal and professional profiles of the elected standing Statutory Auditors.

ROSALBA CASIRAGHI

Year of birth: 1950 Position: Chairman In office since: April 2017 Slate elected on: minority (Italian and foreign institutional investors)

She is certified public auditor. She is currently standing Statutory Auditor of Whirlpool EMEA, Whirlpool Italia Holding Srl and Società per azioni Esercizi Areoportuali S.E.A. She is Chairman of Illimity Bank and Director of Luisa Spagnoli, FSI SGR, SPA.PI Srl and S.P.A.I.M Srl. She is Auditor of Fondazione Telecom.

Experience

She started her carreer as cost accountant in a subsidiary of a US corporation and then she became Chief Financial Officer of the company distributor in Italy of Yamaha Motors co. After these work experiences, she has undertaken business and professional activities, also as Director and Statutory Auditor in companies operating in industrial and financial sector, listed and unlisted. From 1986 to 2000, she was Director of Gpf&Associati, an institute for market research. From 1994 to 2001 she was member of the Italian Commission on Privatization at the Italian Ministry of Economy and Finance. From 1999 to 2003 she was standing Statutory Auditor of Pirelli. From 2001 to 2003 she was Director of Banca Primavera (Banca Generali). From 2003 to 2006 she was standing Statutory Auditor of Telecom Italia. From 2005 to 2006 she was standing Statutory Auditor of Banca Intesa. From 2007 to 2013 she was Chairman of Nedcommunity (the Italian association of Independent Directors). From 2007 al 2016 she was member of Supervisory Board of Banca Intesa San Paolo. From 2008 to 2012 she was standing Statutory Auditor of Industrie De Nora. From 2008 to 2013 she was Chairman of the Board of Statutory Auditors of Banca Cr Firenze. From 2009 to 2012 she was Director of Alto Partners Sgr. From 2009 to 2014 she was Director of NH Hotels SA. From 2012 to 2016 she was Member of the Board of Università degli Studi di Milano. From 2012 to 2015 she was Chairman of the Board of Statutory Auditors of NPL Non Performing Loans. From 2013 to 2015 she was Chairman of the Board of Statutory Auditors of Telecom Media. From 2014 to 2017 she was standing Statutory Auditors of Fabbrica Italiana Lapis F.I.L.A. From 2014 to 2017 she was standing Statutory Auditors of Persidera (TIM group). From 2016 to 2017 she was Chairman of the Board of Statutory Auditors of Banca popolare di Vicenza (Fondo Atlante).

She was Chairman of Statutory Auditors of Nuovo Trasporto Viaggiatori (Italo) from 2014 to 2018. She contributes to business press, in particular for many years she had been technical advisor on economic and financial issues for Il Corriere della Sera, Il Mondo and L'Espresso. In recent years, she contributed to the publication of several books on control systems and on corporate governance. She graduated in Business Administration, faculty of Economics, from the Luigi Bocconi University in Milan.

ENRICO MARIA BIGNAMI Year of birth: 1957 Position: Standing Auditor In office since: April 2017 Slate elected on: minority (Italian and foreign institutional investors)

He is a certified chartered accountant and a certified public auditor. He is a founder and managing partner of "Bignami Associati – Consulenza Aziendale Societaria Tributaria". Currently, among others, he is Lead Indipendent Director, member of the Strategic Committee and member of the Nomination and Compensation Committee of Inwit SpA, member of the Watch Structure of

Luxottica Group SpA, non-executives and independent Director of Masi Agricola SpA. Chairman of the Board of Statutory Auditors of RCS Sport SpA, Aon Benfield Italia SpA, Carcano Antonio SpA; standing Statutory Auditor of Butangas SpA. Chairman of Watch Structure of FSI SGR SpA. He is in the Board of Directors of LILT – Lega per la lotta contro i tumori – provincial section of Milan. He is member of the Board of Directors of Nedcommunity a non-executives and independent administrator's association, in that context he coordinates the Reflection Group which adopted the "Principles of corporate governance for unlisted SMEs" and he is member of another Reflection Group that published "Risk governance and corporate strategic objectives: points of emphasis for the Control and Risk Committee and support to the Board of Directors".

Experience

He has a consolidated experience in advising, particularly on corporate governance, strategic analysis and support to companies in development and turnaround operations; he held positions in Board of Directors and in Board of Statutory Auditors of various companies, including listed and multinational companies; he has experience in management and winding up of companies and in tax laws. He has been, among others, Chairman of the Board of Statutory Auditors of Telecom Italia SpA, Exor SpA, Inwit SpA, Biancamano SpA, Brandt Italia SpA; liquidator of HDC SpA and of Dynamis Equity Partners SpA; standing Statutory Auditor of So.Ge.Mi SpA. He contributed to the drafting of the Italian Code of Conduct for Listed Companies of 2011. He is speaker for induction courses for independent Directors and Statutory Auditors of listed company, organized by Assogestioni and Assonime; he is also speaker in TEB (The Effective Board) of Nedcommunity on topics such as architecture and functioning of the internal control system, control governance and on Board of Statutory Auditors. Moreover he is speaker in conferences and workshops on various topics, including: "built to last" companies, corporate governance and the system of controls in listed and unlisted companies, governance and organization in the restructuring, internal audit and risks, the strategic role, functions and responsibilities of the Board of Statutory Auditors, the functions of the Watch Structure. He wrote papers on governance and interventions among others on "La Rivista dei Dottori Commercialisti", "L'Impresa" and HBR Harvard Business Review. He graduated in Business Economy – specialization in profession of chartered accountant – from the Luigi Bocconi University in Milan.

PAOLA CAMAGNI

Date of birth: 1970 Position: Standing Auditor In office since: May 2014 Slate elected on: majority (Ministry of the Economy and Finance)

She is a certified chartered accountant registered in Milan and is also a certified public auditor. She founded and is a Managing Partner of "Camagni e Associati" Tax Advisors in Milan, established in 2013. She is Chairman of the Board of Statutory Auditors of Agenzia Giornalistica Italia SpA of the Eni group, Mozambique Rovuma Venture SpA- a joint operation with Eni - and Capitoloventidue SpA; she is also a standing statutory auditor for Syndial SpA of the Eni group, Eni Angola SpA of the Eni group, CNP Unicredit Vita SpA, Oracle Italia Srl and Sinergia Srl. She is member of the Watch Structure of CNP Unicredit Vita SpA. She is an external professor at the Luigi Bocconi University in Milan for "Tax law – corporate taxation". She writes for the newspaper "Sole 24 ore" – Part "Norme e tributi" – on tax issues.

Experience

She has gained twenty years of experience as a statutory auditor and Director in listed and multinational companies. In 2015 and 2016 she cooperated with the Prime Minister's technical team as an expert on fiscal and economic policies. She was a Partner in the Tax Firm in conjunction with the Deloitte network where she worked from 2000 to 2013; she was fiscal advisor at the Tax Firm Deiure and at the Tax and Law Firm Ernst & Young in Milan. She has been the advisor of the "Master in Real Estate" in SDA Bocconi in Milan – 2011/2012 and 2012/2013 editions. She graduated in Economics from the L. Bocconi University in Milan and has a Masters in International Tax Law from the same University.

ANDREA PAROLINI Date of birth: 1967 Position: Standing Auditor In office since: April 2017 Slate elected on: majority (Ministry of the Economy and Finance)

He is a certified chartered accountant and certified public auditor. He has been partner of Maisto e Associati since 2007. He is special Professor in tax law at Cattolica University – faculty of economics (Piacenza) – in Tax Law Firm and European Economic Law. Since 2012 he has been member of VAT Expert Group formed by the European Commission. He is member of VAT Club and of the EU Tax Law Group.

Experience

From 2014 to 2016 he was legal and economic adviser within the Office of direct collaboration of the Italian Prime Minister. From 2015 to 2016 he was coordinator of the "Taxation Group" in the work coordinated by the Deputy Secretariat of the Italian Prime Minister on digital economy. He wrote numerous papers on tax law and he is speaker at conferences on VAT, national, international and European taxation. He contributes for Il Sole 24 Ore on VAT issues. He graduated in Economics and Banking from Università Cattolica del Sacro Cuore, in Milan and he has a Master on International Tax Law from Leiden University.

MARCO SERACINI Date of birth: 1957 Position: Standing Auditor In office since: May 2014 Slate elected on: majority (Ministry of the Economy and Finance)

He is a certified chartered accountant, registered in the register of Florence, and a certified public auditor. He graduated summa cum laude in Economics from the University of Florence. He was external professor at the University of Florence for the Department of Business Sciences. He was a member of National Study Commission of National Council of Certified Chartered Accountants about "Statutory audit of municipalities and public bodies". Professor for the Master Degree Course on fiscal discipline in 2015 and 2016 at the Università Cattolica del Sacro Cuore of Milan and lecturer in Corporate Governance at the University of Florence and at the Università Cattolica del Sacro Cuore of Milan. He is currently a member of the Committee for the Review of the Rules of Conduct of the Board of Statutory Auditors of Listed Companies, established by the National Council of Certified Chartered Accountants. From 2014, he is a member of the Research Group – Corporate Law Area – of the National Council of Certified Chartered Accountants. He is Technical Advisor of the Court of Florence and certified Judicial Administrator. He is a founding member of Assobenefit (National Association for the benefit companies), member of Nedcommunity, a non-executives and independent administrator's italian association and member of AICAS – Italian association of Directors and Statutory Auditors. He is currently, among others, Chairman of the Board of Statutory Auditors of Ing. Luigi Conti Vecchi SpA – Eni Group, and LNG Shipping SpA – Eni Group. Statutory auditor in Trans Tunisian Pipeline Company SpA – Eni Group, Eni Fuel SpA – Eni Group, Immobiliare Novoli SpA, Sandonato Srl and Fondazione Stensen; standing Statutory Auditor of Associazione Polimoda, Fondazione Giovanni Paolo II and of Progetto Agata Smeralda. He is and was member of various Watch Structure.

Experience

He is and was Chairman of the Board of Statutory Auditors or Standing Auditor of many leading companies, including listed companies, as well as director and auditor of companies, Public Entities and Foundations. He carries out and carried out professional activities, is the author of many publications and holds conferences mainly on matters of regulated markets, companies, corporate governance, tax law, contracts, Watch Structure, company crises, bankruptcy legislation and judicial administration, public companies, non-profit and voluntary work.

Professional, integrity and independence requirements: causes for ineligibility, incompatibility and forfeiture

Pursuant to the Consolidated Law on Financial Intermediation, the Statutory Auditors must meet specific independence requirements, as well as experience and integrity requirements, as established in the regulations issued by the Minister of Justice in agreement with the Minister of the Economy and Finance147. In addition, the Corporate Governance Code recommends that the Statutory Auditors should be selected from among persons who would also qualify as independent under the criteria established by the Code148. Compliance with those criteria is verified by the Board of Statutory Auditors.

With reference to professional requirements, Art. 28 of the By-laws states that – as established in the above ministerial regulations – the requirements may also be met through professional or teaching experience (of at least three years) in the commercial law, business economics and corporate finance fields, or through the exercise of management functions (for at least three years) in the engineering and geology fields.

In addition, all of the Statutory Auditors currently in office are entered in the register of certified auditors.

Upon their appointment, the Statutory Auditors in office declared for the first time that they fulfilled the independence, integrity and professional requirements set forth in the applicable regulations. After its appointment, the Board of Statutory Auditors verified that the above requirements have been satisfied, including those regarding independence as indicated in the Corporate Governance Code for Directors. The Board of Directors made its own verifications at the meeting held on April 13, 2017.

Most recently on February 13, 2019. the Board of Statutory Auditors confirmed that the independence requirements above continued to be satisfied based upon the criteria set out in the Corporate Governance Code for Directors, as well as the integrity requirements demanded of all its members. At its meeting on February 14, 2019 the Board of Directors made its own verification.

Meeting on April 13, 2017, and then on January 19, 2018 and February 13, 2019, the Board of Statutory Auditors, in its role as "Internal Control and Financial Auditing Committee", also evaluated its satisfaction of the requirements imposed by the provisions of Art. 19 of Legislative Decree No. 39/2010, as amended by Legislative Decree No. 135/2016 providing that "the members of the internal control and financial auditing committee, as a body, are competent in the sector in which the company being audited operates" and verified compliance with the requirements for members of the Board of Statutory Auditors in their capacity as "Audit Committee financial experts", for the purpose of US law.

Pursuant to applicable regulations, persons may not hold office in a control body of an issuer if they hold the same office in five other listed companies. As long as they hold office in the control body of just one issuer, persons may hold other management and control positions in Italian companies, within the limits specified in the Consob regulations.

The Statutory Auditors are required to report the offices they hold or have relinquished, in the manner and within the time limits established in the applicable regulations, to Consob, which shall then publish the information, making it available on its website.

Meetings and operational procedures

The Statutory Auditors, simultaneously with the Directors, are provided with documentation of the issues on the agenda to be discussed at the Board of Directors meetings, and according to the By-laws the

Requirements pursuant to law and Corporate Governance Code

Periodical verification of requirements

Competency requirement and of Audit Committee financial expert

Limited number of other positions

Reporting and documentation to the Board of Statutory Auditors

⁽¹⁴⁷⁾ "Regulation containing the guidelines for establishing the professional and integrity requirements for members of the Board of Statutory Auditors of listed companies, issued in accordance with Art. 148 of Legislative Decree No. 58 of February 24, 1998" set forth in Decree No. 162 of March 30, 2000.

⁽¹⁴⁸⁾ The independence requirements for Directors contained in the Corporate Governance Code are described in the sections of the Report specifically on the Code recommendations, the governance choices made by Eni's Board of Directors and the requirements for Directors. As regards Eni's governance decisions in this area the Board of Statutory Auditors feels that the limit of 30% established by the Board for additional remuneration that could compromise independence (see Criterion 3.C.1, letter d) of the Corporate Governance Code) does not include any remuneration received by the Statutory Auditors for positions held on the control bodies of subsidiaries of Eni, taking due account of the 1997 Consob recommendation on the "group statutory auditor". That choice is highlighted in the text of the Corporate Governance Code published on the Company's website.

	Board of Directors and CEO shall report, on at least a quarterly basis or, in any case, during the Board of Directors meetings on the activities performed and on transactions with the greatest impact on the performance and financial position carried out by the Company and its subsidiaries, in addition to providing a comprehensive bimonthly statement on transactions carried out with related parties and in particular on transactions in which Directors or Statutory Auditors have an interest, in compliance with the corporate procedure governing transactions with related parties149.
	Under that procedure, the Statutory Auditors must inform the Board of Directors and the other Statutory Auditors of any personal or third-party interests they hold in relation to any given transaction of the Company.
	The Rules of the Board of Auditors, in its capacity as the Audit Committee for the purposes of the Sarbanes-Oxley Act, are published on the website of the Company.
	The Board of Statutory Auditors may also meet via videoconferencing or teleconferencing systems.
2018 meetings	The Board of Statutory Auditors met 25 times in 2018. The average duration of the meetings was 3 hours and 34 minutes. In 2018: (i) on average 99% of the Statutory Auditors attended the meetings of the Board of Statutory Auditors; (ii) 100% of the Statutory Auditors attended the meetings of the Board of Directors150.
	In addition, in 2018, the Chairman of the Board or an Auditor designated by her, or with regard to certain issues, the entire Board of Statutory Auditors attended all of the Control and Risk Committee meetings and the meetings of the other Committees of the Board of Directors.
	During the current year, at March 14, 2019, the Board of Statutory Auditors held 7 meetings. Another 11 meetings are scheduled before the end of the year.
Board Induction	As to the Board Induction, the Chairman of the Board of Directors extended an invitation to the Statutory Auditors to attend the training sessions for the Board, which the Board of Statutory Auditors accepted. For more information on the Board Induction, please refer to the section "Board Induction".
Board of Statutory Auditors Review	As was the case in the previous year, complying ahead of time with the new provisions of the Rules of Conduct of the Board of Statutory Auditors issued by the National Council of Chartered Accountants and Accounting Experts in the last edition of April 2018, the Board of Statutory Auditors performed an assessment of its own composition and operation.
	This process, carried out with the support of an external advisor (Egon Zehnder) to strengthen its objectivity, first of all confirmed the suitability of all the Statutory Auditors on the basis of the requisites required by the Italian and US regulations applicable to Eni as listed on the NYSE. In particular, the gender diversity in the current composition of the Board and the other relevant aspects of diversity were also positively assessed pursuant to art. 123-bis, paragraph 2, lett. d-bis) of the Consolidated Law on Financial Intermediation. With regard to the procedures, the Board's action was efficient due to the assiduous attendance of the Auditors at the meetings of the Board of Statutory Auditors as well as for the constant participation in the meetings of the Board of Directors and of the internal Board Committees, for the relevance and selectivity of the topics dealt with, for the planning of the activities as well as for the adequate information support received.
	The activity of the Board was effective also due to the fluid interaction with the Board of Directors, the various internal board committees, and other subjects relevant for the functioning of the internal control system, as well as with the Boards of Statutory Auditors of the main subsidiaries. The information initiatives on the individual businesses initiated by the Company have also contributed to the effectiveness of the Board's action. The Board also performed the tasks that it is responsible for as the Internal Control and Audit Committee and in particular the specific control and monitoring functions in
	(149) For more details, please see the relevant section of this Report. (150) In 2018 the Statutory Auditor Marco Seracini also conducted four individual controls in the course of examining the quarterly reports prepared in accordance with internal rules governing the process of receiving analysis and handling reports sent or transmitted to Eni, including confidentially or anonymously, concerning problems relating to internal control and risk management, financial reporting, the Company's administrative liability, fraud and other matters (whistleblowing).

terms of financial disclosure and statutory audit envisaged starting from 2017 by the art. 19 of Legislative Decree 27 January 2010 n. 39, as amended by Legislative Decree 17 July 2016 No. 135. As part of the selfassessment process, the activities carried out in this role were also positively reviewed and evaluated.

The tables attached to this Report show the participation of each Statutory Auditor in the meetings of the Board of Statutory Auditors and the Board of Directors.

Internal Control and Risk Management System151

* Also Senior Executive Vice President Corporate Aairs and Governance.

** Also Chief Financial Ocer.

In order to promote and maintain an adequate Internal Control and Risk Management System (ICRMS), Eni utilises organisational, informational and regulatory tools, aimed at making it possible to identify, measure, manage and monitor the main risks that Eni faces.

This system is integrated into the organisational, administrative and accounting structure, and more generally into Eni's Corporate Governance framework, and is based upon the recommendations of the

(151) This chapter was approved by the Board of Directors, having received the opinion of the Control and Risk Committee; the section "Main features of the Risk Management and Internal Control Systems applied to the financial reporting process (MSG "Eni Internal Control System over Financial Reporting")", and the section "Officer in charge of preparing financial reports (Financial Reporting Officer)", were also reviewed by the audit firm pursuant to Art. 123-bis, fourth paragraph, of the Consolidated Law on Financial Intermediation.

Corporate Governance Code, taking into consideration national and international reference models and best practices, aimed at strengthening their overall effectiveness and efficiency, taking account of the international nature of the Company.

Focus on compliance

In this context, particular attention is paid to compliance, which for Eni is a key factor in protecting the Company from risks, safeguarding its assets and contributing to the effectiveness and efficiency of all business activities. To this end, Eni's rules in the individual areas of compliance are conceived from a "risk driven" perspective and filtered through international best practices.

ICRMS guidelines and rules of implementation

The "Internal Control and Risk Management System Guidelines" approved by the Board of Directors, acting on a proposal from the Control and Risk Committee and having received the opinion of the Chairman for Internal audit-related issues, implement the Corporate Governance Code and define the architecture of the ICRMS, including with respect to information flows and procedures for implementation, which are mandatory for Eni SpA and all of its subsidiaries.

The Guidelines set forth the primary roles and responsibilities relating to the ICRMS, setting out the modes of interaction and coordination152 between the various actors involved, in order to maximise effectiveness and efficiency and reduce any duplication153.

The Guidelines were modified on October 25, 2018154 to reflect the changes in roles, responsibilities and information flows for the new Integrated Compliance process.

These regulations, issued by the Chief Executive Officer and also modified on October 26, 2018 to take into account the amendments of the Guidelines, along with those on Integrated Risk Management155 and Integrated Compliance156:

• represent, develop and implement a model integrating the various existing elements of Eni's ICRMS;
• provide all Eni management with a suitable framework for implementing this system;
• ensure that the Board receives every six months for the ICRMS and every three months for risks157 a comprehensive representation of the various elements of the system on which to base its decisions.

Most recently at its meeting of March 14, 2019 the Board of Directors, having considered the Reports of the Financial Reporting Officer and of the Control and Risk Committee, the Report on administrative and accounting structure, the part of the Report on organisational structure concerning the organisational arrangements of the ICRMS, the Report on compliance with financial risk limits, the Integrated Compliance Report and the Risk Report, and having consulted with the Committee, evaluated as positive: (i) the adequacy and effectiveness of the Internal Control and Risk Management System in relation to the nature of the Company and its risk profile as well as the consistency with the corporate objectives; and (ii) the adequacy of the powers and resources available to the Financial Reporting Officer as well as compliance with the administrative and accounting procedures prepared by the same.

The following is a detailed description of the roles and duties of the actors in Eni's Internal Control and Risk Management System, the benchmark models, reporting flows and the assessments performed.

(152) The information contained throughout this section of the Report is provided for the purposes of the disclosure required by Criterion 7.C.1.d) of the Corporate Governance Code.

(153) Criterion 7.P.3 of the Corporate Governance Code.

(154) The ICRMS guidelines, approved on March 14, 2013 incorporate the previous risk guidelines that the Board approved on December 13, 2012 after having received the opinion of the Control and Risk Committee.

(155) In order to support the decision-making process, the results of the periodic risk assessment and monitoring activities are presented by the Integrated Risk Management Department to the Risk Committee, a committee composed of Eni's top management and chaired by the CEO. Every three months the latter submits the findings to the Board of Directors for examination to assist it in evaluating every six months the suitability and effectiveness of the ICRMS, with regard to the characteristics of Eni and its risk profile as well as the consistency with the corporate objectives. For more information, please see the "Management System Guideline Integrated Risk Management" section of this Report. (156) Every year, the Head of Integrated Compliance submits the Integrated Compliance Report to the Compliance Committee, the Risk Committee, the CEO, the Control and Risk Committee, the Board of Statutory Auditors and the Watch Structure. The Report includes an assessment by the Head of the unit of the appropriateness of the design of the Management System Guidelines concerning compliance issues. The Report is submitted by the CEO to the Board of Directors for information purposes. For more information on the Integrated Compliance process and related reporting flows, please refer to the section "Management System Guideline Integrated Compliance" of this Report. (157) With its resolution of May 9, 2014, the Board of Directors increased the frequency of reports to it on risks from every six months to every three months.

The Internal Control and Risk Management System Guidelines approved by the Board

The evaluation of the Board on ICRMS

Actors and duties

Board of Directors

The Eni SpA Board of Directors, having examined the proposals and having received the opinion of the Control and Risk Committee and having received the opinion of the Chairman on the part addressing Internal Audit issues, sets the guidelines for the ICRMS so as to ensure that the main risks to the Company and its subsidiaries are properly identified, measured, managed and monitored, as well as to determine the degree of compatibility of such risks with managing the business consistent with its strategic objectives. More specifically, the Board sets restrictions on the Company's financial risk.

For that purpose, the Board:

• has formed a Control and Risk Committee to provide it with support in making evaluations and decisions pertaining to the ICRMS, as well as in relation to approving periodic financial reports;
• has charged the CEO, who is the Director in charge of the Internal Control and Risk Management System, with the duty of implementing the guidelines and overseeing the system;
• on the proposal of the Chairman in agreement with the CEO, having first received the favourable opinion of the Control and Risk Committee and in consultation with the Board of Statutory Auditors: (i) appoints the Head of the Internal Audit Department, also received the opinion of the Nomination Committee; (ii) ensures that he has the necessary resources to perform his duties; and (iii) establishes the remuneration framework in line with corporate policies.

Activities of the Board of Directors

In order to perform its management and strategic oversight duties, the Board, having received the prior opinion of the Control and Risk Committee:

• examines the main business risks, identified by taking into account the nature of the activities of the Company and its subsidiaries, submitted by the CEO at least once every three months;
• evaluates at least once every six months the adequacy and effectiveness of the Internal Control and Risk Management System, with regard to the characteristics of the business and its risk profile as well as the consistency with the corporate objectives, unless unforeseen events occur requiring special in-depth attention;
• monitors whether the Financial Reporting Officer has adequate powers and means to carry out his duties and monitors compliance with the administrative and accounting procedures;
• approves, at least once a year, and most recently on February 14, 2019, the Audit Plan prepared by the Head of the Internal Audit Department, in consultation with the Chairman of the Board of Directors, the CEO and the Board of Statutory Auditors, including in its capacity as the "Audit Committee" under US law. It also approves, most recently on February 14, 2019, the Internal Audit budget, acting on a proposal of the Chairman of the Board of Directors, in agreement with the CEO and in consultation with the Board of Statutory Auditors158;
• evaluates, in consultation with the Board of Statutory Auditors, the findings contained in the suggestion letter, if any, of the firm that performed the statutory audit and in its report on the fundamental issues that arose during the statutory audit. At its meeting of 25 October 2018 the Board, having received the opinions of the Control and Risk Committee and of the Board of Statutory Auditors, shared the findings contained in the suggestion letter of the firm for 2017.

Chairman of the Board of Directors

Subject to the other powers granted by the law, the By-laws and the corporate governance system, within the context of the Board the Chairman plays an important role with regard to:

• the proposals for appointing and removing the main officers and bodies of the Company, in particular those involved in control activities (Watch Structure, FRO, the Head of Integrated Risk

(158) In exceptional and urgent circumstances that require resources in excess of those provided for in the budget, the Head of the Internal Audit Department notifies the Chairman of the Board of Directors who proposes to the Board that it approves the extra budget, in agreement with the CEO, having received the favourable opinion of the Control and Risk Committee and in consultation with the Board of Statutory Auditors.

The Board's role in the governance of the ICRMS

2018

The evaluations and decisions of the Board of Directors

The role of the Chairman of the Board of Directors in the internal controls

Eni

Management, the Head of Integrated Compliance, and the Head of Internal Audit). More specifically, she manages the reporting between the Board of Directors and the Head of the Internal Audit Department159, and submits to the Board160, in agreement with the CEO, the proposals on the appointment, removal and compensation structure for the Head of Internal Audit and the budget proposal to ensure that he has adequate resources to perform his duties;

• the main rules governing the activities of the Internal Audit Department (i) proposing the guidelines to the Board of Directors, in agreement with the CEO and in consultation with the Control and Risk Committee; and (ii) approving the Management System Guidelines for Internal Audit activities, in consultation with the CEO and the Control and Risk Committee. The Chairman is also consulted on the approval of the ICRMS guidelines with regard to Internal Audit activities;
• flows of information on the activities of the Internal Audit Department, receiving along with the CEO, the Control and Risk Committee and the Board of Statutory Auditors of Eni SpA, the results of the audit performed, as well as the periodic reports on the activities of Eni's Internal Audit Department, on the procedure it follows in managing risks and on how well it is following the plan for their containment, in addition to specific reports prepared with regard to significant events. The Chairman is also informed, along with the Chairman of the Control and Risk Committee of Eni SpA and the Chairman of the Board of Statutory Auditors of Eni SpA, whenever the CEO of Eni SpA asks the Eni's Internal Audit Department to audit specific areas of operations and to verify compliance with internal rules and procedures in operations;
• the request to perform audits of specific areas of operations and to verify compliance with internal rules and procedures in operations, having the option of asking the Head of the Internal Audit Department, while simultaneously notifying the CEO, the Chairman of the Control and Risk Committee and the Chairman of the Board of Statutory Auditors;
• the activities of the Eni Watch Structure: Model 231 requires the Watch Structure to submit a Report every six months to the Chairman, the CEO, the Control and Risk Committee and the Board of Statutory Auditors. The Chairman also receives from the Watch Structure, along with the CEO, the Control and Risk Committee and the Board of Statutory Auditors, immediate notice if the particularly material or significant facts are uncovered;
• the activities of the Guarantor of the Code of Ethics: the Code of Ethics provides that the Guarantor, the functions of which have been assigned to Eni SpA Watch Structure, submit a report every six months on the implementation and possible need for updates to the Code to the Chairman, the CEO (who report to the Board), to the Control and Risk Committee and to the Board of Statutory Auditors;
• participation of Executives and Heads of structures at Board Meetings: the Chairman may ask the CEO of Eni SpA, also at the request of one or more Directors, that the Executives of Eni SpA and of the Group companies, the Heads of the relevant Departments (based upon the issues being addressed), attend Board meetings to provide information on items on the agenda.

Board of Statutory Auditors

	In addition to the functions provided for by law, and in particular by Art. 149 of the Consolidated Law on Financial Intermediation, the Board of Statutory Auditors monitors the financial reporting process and the effectiveness of the Internal Control and Risk Management System, in accordance with the Corporate Governance Code, acting also as "Internal Control and Financial Auditing Committee" (ICFAC), pursuant to Legislative Decree No. 39/2010 and "Audit Committee" under US law. The duties of the Board of Statutory Auditors are described in the section on the "Board of Statutory Auditors" in this Report.
Monitoring activities of the Board of Statutory Auditors on risks	The monitoring of the general process of managing company risks is performed through meetings with the Heads of the main business and functional areas, including the Head of Integrated Risk Management Unit and the Financial Reporting Officer, participation in meetings of the Board of Directors and the other Board Committees and the exchange of information with the audit firm. The Board of Statutory Auditors also meets periodically with the Watch Structure.
Information flows and coordination with other control bodies and functions	In this respect, the Board of Statutory Auditors receives the information required to perform its duties as well as the reports submitted and opinions expressed by the Company risk management bodies and functions.
	(159) Without prejudice to the Head being functionally subject to the authority of the Control and Risk Committee and the CEO, as director in charge of the Internal Control and Risk Management System. (160) The Control and Risk Committee issues its (favourable) opinion on proposals submitted to the Board. The Board makes a decision in consultation with the Board of Statutory Auditors. The Nomination Committee's opinion is also sought on the proposals concerning appointment and removal.

The procedures for coordinating the functions of the Board of Statutory Auditors with those of the Internal Audit Department and the Control and Risk Committee are described in the sections on these latter.

In the performance of its functions the Board of Statutory Auditors may avail itself of Company units, in particular the Internal Audit Department and the Administration and Financial Reporting unit.

For more information on the activities of the Board of Statutory Auditors, please refer to the report to the Shareholders' Meeting prepared in accordance with Art. 153 of the Consolidated Law on Financial Intermediation.

Control and Risk Committee

The Control and Risk Committee, formed in Eni in 1994161, supports, on the basis of an adequate control process, the Board in evaluating and making decisions concerning the ICRMS and in approving the periodic financial reports162.

The Committee periodic reports to the Board of Directors are drafted taking account of information provided by the FRO, the Head of the Internal Audit Department and Eni's Watch Structure, the Head of Integrated Risk Management in their respective reports, and, more generally, on information obtained in performing its duties.

The Committee advises the Board of Directors. Specifically, it:

• issues a prior opinion: a) on and drafts recommendations and updates concerning the guidelines for the ICRMS to be approved by the Board of Directors163; b) on the half-yearly evaluation of the overall adequacy and effectiveness of the ICRMS, with regard to the characteristics of the business and its risk profile; to this end, at least once every six months the Committee reports to the Board of Directors, on the occasion of the approval of the annual and semi-annual financial reports, on its activities and on the adequacy of the ICRMS; c) on the approval, at least once a year, of the Audit Plan; d) and on the evaluation of the findings reported in the suggestion letter, if any, of the audit firm and in its report on the fundamental issues that arose during the Statutory Audit;
• issues its favourable opinion on the proposals formulated by the Chairman of the Board of Directors, in agreement with the CEO, concerning the appointment, the removal and the definition of the structure of the remuneration of the Head of the Internal Audit Department, as well as the adequacy of the resources provided to the latter to perform his duties;
• examines the main risks presented to the Board of Directors of Eni SpA and issues opinions on specific aspects concerning the identification of the main corporate risks;
• examines and issues an opinion on the adoption and amendment of the rules on the transparency and the substantive and procedural fairness of transactions with related parties and those in which a Director or Statutory Auditor holds a personal interest or an interest on behalf of a third party, while performing the additional duties assigned it by the Board of Directors, including examining and issuing an evaluation on specific types of transactions, except for those relating to compensation164;
• issues an opinion on the key guidelines of the Regulatory System and regulatory instruments to be approved by the Board of Directors, on their amendment or updating and, at the request of the CEO, on specific aspects concerning the instruments implementing the foundations.

In addition, the Committee, in assisting the Board of Directors:

• monitors the independence, adequacy, efficiency and effectiveness of the Internal Audit Department and oversees its activities, with respect to the duties in this area of the Board of Directors, and the Chairman of the Board on its behalf, ensuring that they are performed with the necessary

Advisory role of the Committee to the Board

The Committee and the Internal Audit

⁽¹⁶¹⁾ The Internal Control Committee, first established within the Board of Directors on February 9, 1994, changed its name to "Control and Risk Committee" by resolution of the Board of Directors on July 31, 2012, in accordance with the recommendations of the 2011 Corporate Governance Code.

⁽¹⁶²⁾ For more information on the composition of the Committee, see the section on the "Control and Risk Committee" of the Board of Directors in this Report.

⁽¹⁶³⁾ The proposals of the Control and Risk Committee regard the policy indications for the ICRMS included in the Management System Guideline "Internal Control and Risk Management System", which is addressed in a specific section of this Report. The Committee gives opinions to the Board concerning the approval of certain regulatory instruments (e.g. the Management System Guideline on Compliance). (164) For more information, please see the section "Management System Guideline Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties" in this Report.

independence and required level of objectivity, competence and professional diligence, in accordance with the Code of Ethics of Eni SpA and the international standards of the internal auditing profession.

In particular, the Committee assesses whether the Head of Internal Audit satisfies the integrity, professionalism, expertise and experience requirements at the time of appointment and annually thereafter to verify that they continue to be met.

The examination of reports and communications of other bodies and control functions

In addition, the Committee examines: a) the results of the audit activities performed by the Internal Audit Department; b) the periodic reports prepared by the Internal Audit Department containing adequate information on the activities carried out, on the manner in which risk management activities are conducted and on compliance with risk containment plans, as well as reports on significant events, and the assessment of the appropriateness of the ICRMS. The Committee may ask the Internal Audit Department to audit specific areas of operations, simultaneously notifying the Chairman of the Board of Statutory Auditors of the assignment:

• examines, together with the Financial Reporting Officer, and having consulted the firm that conducts the Statutory Audit and the Board of Statutory Auditors, the proper application of the accounting standards (IFRS) and their consistent use in preparing the consolidated financial statements, prior to being approved by the Board;
• examines and assesses (i) the Report prepared by the CFO/FRO on the basis of which it provides an opinion to the Board of Directors on the adequacy of the powers and resources assigned to the FRO and the state of compliance with administrative and accounting procedures, reporting on them to the Board in order for the Board to perform its supervisory functions as provided for by applicable law; (ii) communications and information received from the Board of Statutory Auditors and its members regarding the ICRMS; (iii) the periodic reports issued by Eni's Watch Structure, including in its capacity as Guarantor of the Code of Ethics; (iv) information on the ICRMS, including that provided in the course of periodic meetings with the competent Company structures, enquiries and reviews carried out by non-Eni Group parties;
• examines the periodic reports prepared by the Integrated Compliance Department on the results of Eni compliance activities.

In addition, the Committee, at the request of the Board, provides assistance, performing appropriate enquiries, to the Board of Directors in making assessments and decisions concerning risk management as it regards potentially prejudicial situations of which the Board of Directors is aware.

Finally, the Committee oversees the activities of the Legal Affairs Department in case of judicial inquiries and proceedings, carried out in Italy and/or abroad, concerning the CEO and/or the Chairman of Eni SpA and/or a member of the Board of Directors and/or an Executive reporting directly to the CEO, even if no longer in office for crimes against the Public Administration and/or corporate crimes and/or environmental crimes, related to their mandate and their scope of responsibility.

In any event, the Committee shall establish an information exchange procedure with the Board of Statutory Auditors for the purposes of promptly sharing information necessary for them to complete their respective tasks and to coordinate their respective activities in areas for which they are jointly competent so as to ensure the orderly performance of company business.

Please refer to the relevant section on this Report for more detailed information on the Committee's activities in 2018.

The Chief Executive Officer, acting as the Director in charge of the Internal Control and Risk Management System

The Chief Executive Officer of Eni SpA is charged by the Board of Directors with establishing and maintaining an effective ICRMS. For this purpose, the CEO:

• identifies the main risks faced by the Company, taking account of the characteristics of the activities of Eni SpA and its subsidiaries, and reports on them to the Board of Directors at least once every three months;
• implements the policy guidelines for the ICRMS defined by the Board and is responsible for their planning, execution and management;
• constantly monitors the overall adequacy and effectiveness of the ICRMS, ensuring that it is updated in response to changes in the operational and regulatory framework.

Assistance to the Board in management of risks coming from potentially prejudicial situations

The Committee and the Legal Affairs Department

Information flows with the Board of Statutory Auditors

The CEO is charged by the Board of Directors with establishing and maintaining an effective ICRMS

As regards the internal control system for financial reporting, these duties are performed without prejudice to the role assigned by law to the Financial Reporting Officer165.

The CEO may ask the Internal Audit Department to perform an audit on specific areas of operations and on compliance with internal rules and procedures in executing business transactions.

In this case, the CEO provides simultaneous notice to the Chairmen of the Board of Directors, of the Control and Risk Committee and of the Board of Statutory Auditors.

The CEO shall promptly notify the Control and Risk Committee (or the Board of Directors) of problems or critical issues that arise in performing his duties or that he has discovered so that the Committee (or the Board) can take appropriate action.

Internal Audit

The Internal Audit Department plays a leading role in verifying and assessing the ICRMS. It is primarily responsible for:

• verifying the overall operation and suitability of Eni's ICRMS, both on-going and in relation to special needs, providing its assessments and recommendations in order to enhance its efficiency and effectiveness;
• providing specialised support to Company top management concerning the ICRMS, to improve its effectiveness, efficiency and integration within corporate processes.

In keeping with best international internal auditing practices, in accordance with the guidelines for the Internal Control and Risk Management System approved by the Board, on December 11, 2014, and more recently on May 24, 2018, the Board approved the Internal Audit Charter166, which sets out the objectives, power and duties of the Internal Audit Department.

(165) For more information, please see the section "Officer in charge of preparing financial reports (Financial Reporting Officer)" of this Report. (166) The Internal Audit Charter contains the internal audit guidelines approved by the Board of Directors (for the first time in 2008), the contents of which have been integrated into the Internal Audit Management System Guideline. For more information, please refer to the section on Eni's Regulatory System.

Internal Audit Charter

The CEO and the Internal Audit Department

Head of Internal Audit reporting and nomination process	The Board of Directors, in accordance with relevant best practices, decided that the Head of the Internal Audit Department would report directly to the Board, and to the Chairman on its behalf, without prejudice to his functional reporting to the Control and Risk Committee and the CEO167.
	The governance rules pertaining to the appointment and removal of the Head of the Internal Audit Department are designed to ensure his maximum independence.
	In fact, in going beyond what the Code recommendation requires, the Head of the Internal Audit Department is appointed by the Board of Directors upon proposal of the Chairman of the Board, in agreement with the Chief Executive Officer, subject to the favourable opinion of the Control and Risk Committee, as well as after hearing the Board of Statutory Auditors.
	The proposal is also subject to the favourable opinion of the Nomination Committee. The Head of the Internal Audit Department is removed in the same way he is appointed.
	The Head of the Internal Audit Department also reports to the Board of Statutory Auditors of Eni in its capacity as the "Audit Committee" under US laws.
The role of the Control and Risk Committee	In preparation for the appointment, the Control and Risk Committee evaluates the candidate to determine whether he satisfies the integrity, professionalism, expertise and experience requirements required to perform his duties, as well as determining the absence of any circumstances rendering him incompatible for the position, including conflicts of interest, with respect to previous business or positions held with the Company and/or its subsidiaries, and with regard to relationships168 with persons holding operational responsibilities with Eni. The Control and Risk Committee is tasked with annually evaluating whether these requirements are met.
	The Control and Risk Committee oversees the activities of the Internal Audit Department, monitoring its autonomy, adequacy, effectiveness and efficiency, with respect to the related duties of the Board of Directors, and on its behalf the Chairman of the Board.
	The Head of the Internal Audit Department, as well as all the other members of the unit, are not responsible for any operational area and have direct access to any information which may be pertinent to the performance of his duties.
Remuneration and budget	The Board of Directors, having received the prior favourable opinion of the Control and Risk Committee and in consultation with the Board of Statutory Auditors of Eni SpA, acting upon the proposal of the Chairman of the Board of Directors in agreement with the CEO, also approves the fixed and variable remuneration for the Head of the Internal Audit Department, in keeping with Company remuneration policies.
	The Board of Directors of Eni SpA, having received the prior favourable opinion of the Control and Risk Committee and in consultation with the Statutory Auditors, acting upon the proposal of the Chairman of the Board of Directors in agreement with the CEO, approves the budget of the Internal Audit Department, ensuring that its head has adequate resources to perform his duties.
	Following the election of the Board of Directors, on May 9, 2017, the Board of Directors confirmed Marco Petracchini as the Head of the Internal Audit Department, upon a proposal of the Chairman of the Board of Directors, in agreement with the CEO, having first received the favourable opinion of the Control and Risk Committee, and in consultation with the Board of Statutory Auditors and the Nomination Committee.
	The scope, activities and duties of the Internal Audit Department, as governed by the Internal Audit Charter, are described below.
	(167) The CEO takes part in the appointment of the Head of the Internal Audit unit and in the other activities described in this section, in his capacity as Director in charge of establishing and maintaining the Internal Control and Risk Management System. (168) Such relationships include i) personal relationships (partners, fiancées), ii) family relationships (parents, children, husband/wife, other relatives within the second degree and in-laws), iii) financial relationships with employees of the Eni Group, even as consultants/

providers of professional services.

81

Scope and activity of the Internal Audit Department

The Internal Audit Department of Eni SpA performs its assigned duties for: - Eni SpA;

• subsidiaries directly or indirectly controlled by Eni, excluding listed subsidiaries with their own internal audit systems;
• investees, under specific agreements;
• non-Group companies considered to be high risk, pursuant to the relevant agreements with Eni.

Companies that, under applicable law, are required to have their own Internal Audit units, will, when possible and to exploit any operating synergies, entrust such internal audit activity to the Eni SpA Internal Audit Department, under specific agreements.

All the departments, units, processes and/or sub-processes, IT systems (including accounting systems) are subject to Internal Audit, without exception, with regard to the risks and resulting objectives of:

• efficient and effective processes;
• reliable reporting to the corporate bodies and the market;
• compliance with the law, regulations, the By-laws and applicable rules, particularly with regard to Model 231 and to the Compliance Model for corporate liability for the foreign subsidiaries of Eni SpA, anti-corruption regulatory instruments, as well as other compliance models and systems adopted to ensure the compliance of corporate activities with the law;
• protection of corporate assets (as a combined effect of the preceding types of internal audit activities).

Furthermore, the Internal Audit Department:

• performs supervisory activities on behalf of the Eni Watch Structure;
• conducts independent monitoring as provided for by the Internal Control System with regard to financial reporting and the oversight activities envisaged under the Compliance Model for corporate liability for the foreign subsidiaries of Eni SpA and/or similar duties based upon the internal control models applicable and that are approved by the Board of Directors;
• on the basis of the principles and criteria established, organises and monitors the systematic gathering of the data, information and evaluations need to formulate and update the Audit Plan proposal;
• ensures the necessary flows of information on audits performed and the related periodic reporting to the Chairman of the Board, the CEO, the supervisory and control bodies of Eni and, where applicable, the subsidiaries;
• manages preliminary activities in support of assessments by the competent control bodies, including the Board of Statutory Auditors of Eni SpA also in its capacity as the "Audit Committee" under US law, of reports concerning non-compliance with external laws and regulations as well as the rules of Eni's internal regulatory system169;
• manages preliminary activities in support of assessments by the Eni SpA Watch Structure, in its capacity as the guarantor for the Code of Ethics for all companies of the Group, of reports of violations of the standards and principles defined in the Code of Ethics170;
• handles the necessary flows of information on the investigations on whistleblowing reports performed and the related periodic reporting to the Chairman of the Board of Directors, the CEO, the control and oversight bodies of Eni SpA, its subsidiaries, and other competent parties, in line with the relevant internal rules;
• carries out the preparations required for the engagement of the firm that performs the statutory audit, with the support of other competent departments pursuant to applicable law, as well as verifies that the firm continues to satisfy the independence requirements throughout its appointment, reporting on such to the Board of Statutory Auditors of Eni SpA, also in its capacity as the Internal Control and Financial Auditing Committee;

Scope

Activities

⁽¹⁶⁹⁾ For more information, please refer to the section "Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad" of this Report.

⁽¹⁷⁰⁾ On November 23, 2017, the Eni SpA Board of Directors approved the new version of the Code of Ethics, which establishes that the Eni SpA Watch Structure is responsible for overseeing compliance with the Code of Ethics for all companies of the Group. As a result, beginning in 2018, all reports of violations of the standards and principles defined in the Code of Ethics that are not reports related to the ICRMS concerning reports, anonymous or otherwise, received by Eni SpA and its subsidiaries in Italy and abroad (see the dedicated section of this report below) are to be verified by the Eni SpA Watch Structure as the Guarantor of the Eni Code of Ethics.

	- provides advisory services aimed at providing specialist support to company management in the creation of value added and improving Eni's governance processes and risk management and control by participating in dedicated, inter-functional working groups established within Eni's organisation, while also overseeing training on ICRMS issues, contextualised within the scope of the various businesses.
Audit Plan	Duties of the Internal Audit Department Internal Audit activities are scheduled based on an annual Audit Plan prepared by the Head of the Internal Audit Department following a defined method, taking a "top-down" and "risk-based" approach to assessing the main risks.
	The Audit Plan is approved at least annually171 by the Board of Directors, subject to the prior opinion of the Control and Risk Committee, in consultation with the Chairman of the Board of Directors, the CEO and the Board of Statutory Auditors of Eni SpA (including in its capacity as the "Audit Committee" under US law).
	The Eni SpA supervisory plan, approved by Eni's Watch Structure, pursuant to Eni's Model 231, forms an integral part of the Audit Plan.
	The approved Audit Plan may be updated/amended during the year in response to developments in the Eni Strategic Plan, the risk profile, the ownership structure of the Group and other emerging issues of special importance on the occasion of the presentation of the half-year report by the Head of Internal Audit.
Spot audits	The Head of the Internal Audit Department may also order spot audits not provided for under the Plan based on: a) requests submitted by: - the Board of Directors; - the Control and Risk Committee, which simultaneously notifies the Chairman of the Board of Statutory Auditors; - the Chairman of the Board of Directors, who simultaneously notifies the CEO, the Chairman of the Control and Risk Committee and the Chairman of the Board of Statutory Auditors; - the CEO, who simultaneously notifies the Chairman of the Board of Directors, the Chairman of the Control and Risk Committee and the Chairman of the Board of Statutory Auditors; - Executives reporting directly to the CEO, with respect to their areas of responsibility, who also evaluate any requests from their respective structures; - the CEOs of the strategically important subsidiaries, as identified by the Board of Directors; - the Board of Statutory Auditors of Eni SpA; - the Eni Watch Structure; b) his own assessment. The Internal Audit Department – in coordination with Integrated Compliance for the issues within the scope of this unit's responsibilities – also provides operational support in independent, outside audits conducted directly by the Eni SpA oversight and control bodies, including by coordinating the
Audit Reports and other reporting	contributions requested of the other Eni functions involved. The findings of each internal audit performed, whether scheduled or spot audits, are reported in Internal Audit Reports, which are sent by the Head of the Internal Audit Department simultaneously to the structures audited, the Chairman of the Board of Directors of Eni SpA, the CEO of Eni SpA, as well as the Chief Financial Officer, the Control and Risk Committee and to the Board of Statutory Auditors of Eni SpA. The Internal Audit Reports are also sent to the Eni Watch Structure, to the extent such falls within the scope of its duties, and to the control and supervisory bodies of the subsidiaries, with regard to internal audits involving them.

(171) The Board of Directors most recently approved the Audit Plan on February 14, 2019.

The Internal Audit Reports contain brief evaluations of the ICRMS for the areas and processes audited, the description of the findings made and the limitations encountered, as well as recommendations. In response, the Heads of the activities and areas audited are required to draw up corrective action plans, the implementation of which is monitored by the Internal Audit Department.

The Head of the Internal Audit Department reports (i) every six months providing adequate information on his activities, on the risk management process and on compliance with the plans developed to mitigate risk, as well as on the suitability of the ICRMS and (ii) as needed on significant events.

The reports are submitted simultaneously by the Head of the Internal Audit Department to the Chairman of the Board of Directors, to the CEO, to the Control and Risk Committee and to the Board of Statutory Auditors of Eni SpA and, for those issues handled by Eni SpA, to its Watch Structure.

On July 10, 2018, the Head of the Internal Audit Department issued his Half-Year Report (covering the period from January 1 to June 30, 2018, updated as of the date the Report was issued), in which he reported that no situations or significant problems were found that called into question the adequacy of the Eni Internal Control and Risk Management System as a whole.

On March 7, 2019, the Head of the Internal Audit Department issued his Annual Report (covering the period from January 1 to December 31, 2018, updated as of the date the report was issued) in which he reported that, as required by the "Internal Control and Risk Management System" MSG and on the basis of the findings with regard to each component of Eni's ICRMS, no situations or significant problems were found that called into question the adequacy of the Eni Internal Control and Risk Management System as a whole.

In accordance with the quality assurance and continuous improvement programme developed and launched within the unit, the Head of the Internal Audit Department also reports to the Chairman of the Board of Directors, the CEO, the Control and Risk Committee and the Board of Statutory Auditors on the final results, any plan for corrective actions and the periodic updates on their implementation status relating to internal and external assessments performed. The Head of the Internal Audit Department also communicates the results of such assessments to the Watch Structure of Eni SpA.

Officer in charge of preparing financial reports (Financial Reporting Officer)

Pursuant to Art. 24 of the By-laws, in compliance with the provisions of Art. 154-bis of the Consolidated Law on Financial Intermediation, the Officer in charge of preparing financial reports ("Financial Reporting Officer" or "FRO") is appointed by the Board of Directors, acting upon a proposal by the Chief Executive Officer, in agreement with the Chairman and subject to a favourable opinion of the Board of Statutory Auditors. The proposal is also examined by the Nomination Committee.

In accordance with the By-laws, the FRO must be selected from among candidates who have performed the following activities for at least three years:

• administration, control or senior management activities in companies listed on regulated stock exchanges in Italy or other European Union Countries or other OECD Countries with a share capital of no less than €2 million or;
• statutory audit activities in companies indicated in the preceding point or;
• professional activities or university lecturing activities in the financial or accounting sectors or;
• senior management positions in public or private entities with financial, accounting or control expertise.

On May 9, 2017, the Board of Directors, upon the proposal of the CEO, in agreement with the Chairman, having received the favourable opinion of the Board of Statutory Auditors and in consultation with the Nomination Committee, confirmed the appointment of the Chief Financial Officer (CFO) of Eni SpA, Massimo Mondazzi as the FRO172. Most recently on February 14, 2019 the Board of Directors performed the periodic assessment of compliance with the requirements for the position of FRO.

(172) Massimo Mondazzi first appointed CFO and FRO on December 5, 2012.

Semi-annual and annual report on ICRMS

Quality assurance & continuous improvement

The appointment process and requirements of the Financial Reporting Officer

Duties, powers and resources of the Financial Reporting Officer In accordance with the law, the FRO is responsible for the internal control system as it relates to financial reporting. For this purpose, he establishes the necessary administrative and accounting procedures for drafting the periodic accounting documentation and any other financial notification; moreover, he certifies – together with the CEO – their adequacy and actual implementation during the period to which the accounting documents refer through an appropriate report on the annual, semi-annual and consolidated financial statements. Pursuant to the aforementioned Art. 154-bis of the Consolidated Law on Financial Intermediation, the Board of Directors monitors the adequacy of the powers and resources available to the FRO, as well as the observance of these procedures. On March 14, 2019, the Board of Directors confirmed the adequacy of the powers and resources available to the Officer in charge of preparing financial reports as well as compliance with the administrative and accounting procedures prepared by the same173. Watch Structure Consistent with the provision of Model 231, on May 25, 2017, the Board, having received the favourable opinion of the Board of Statutory Auditors and in consultation with the Nomination Committee, confirmed the previous composition of Eni SpA Watch Structure and, in its meeting on January 17, 2019, adjusted its composition in response to the organisational changes introduced: accordingly, as of the date of approval of this Report, the Watch Structure of Eni SpA is now composed of: Attilio Befera (acting as Chairman), Ugo Draetta and Claudio Varrone, as external members, and Stefano Speroni174 (Head of Legal Affairs), Luca Franceschini (Head of Integrated Compliance), Marco Petracchini (Head of Internal Audit), Domenico Noviello (Executive Vice President Labour Law and Disputes, manager directly reporting to the Head of the Human Resources and Organization Department), as internal members. Given the composition of the Watch Structure, which is composed of 4 internal and 3 external members, based on the provisions of the Model 231 the Watch Structure's operating rules must indicate quorums for holding meetings and for voting such that, in order for Watch Structure decisions to be valid, it must always be supported by a majority of the external members. This provision is meant to make explicit in the Model as well the predominance of the independent members, enhancing their contribution and balancing their influence on decision making despite the larger number of internal members in the Watch Structure. The external members are selected from among academics and professionals with proven skill and experience in economic and company organisation matters and in the administrative liability of corporations. Model 231, also sets out conditions for eligibility/integrity and forfeiture, which include, inter alia, the issue of a judgment of conviction, even if not final, against the person, and being subject to bankruptcy proceedings. More specifically, the following persons are prohibited from becoming external members of the Watch Structure and, if appointed, forfeit the position: those with ties to Eni SpA or a subsidiary, or with Directors of Eni SpA or a subsidiary (such as spouses, relatives or in-laws within the fourth degree of kinship of Directors of Eni SpA or a subsidiary); employees or independent contractors or parties to any other financial or professional relationship that would compromise their independence, without prejudice to holding any position on a control body of a Group company. Responsibility for the internal control system over financial reporting Board oversight Members of the Watch Structure Quorums for holding meetings and for voting Requirements

(173) For further information, please see the section on the assessments of the Board of Directors of this Report. (174) In line with the provision of Model 231, the Board of Directors of Eni SpA, on January 17, 2019, appointed Stefano Speroni in replacement of Marco Bollini, formerly Head of Legal Affairs, who as from January 1st, 2019 has a new position in Eni SpA.

At present, the Company has not elected to attribute the Watch Structure functions to its Board of Statutory Auditors, pursuant to Art. 6, paragraph 4-bis, of Legislative Decree No. 231 of June 8, 2001 (hereinafter "Legislative Decree No. 231/2001")175.

The synergies between Model 231 and the Code of Ethics (an integral part and essential general principle of Model 231) are highlighted by the assignment of the functions of Guarantor of the Code of Ethics to the Eni SpA Watch Structure for all subsidiaries of the Group.

Duties of the Eni Watch Structure

The Eni Watch Structure performs the following main functions:

• monitoring the effectiveness of Eni's Model 231, as well as its implementation and updating; - assessing the adequacy of Model 231 and guaranteeing its sound and efficient functioning over
• time by proposing any necessary updates; - monitoring the progress of its implementation by the Italian subsidiaries and promoting the
• circulation and understanding of the procedures and tools for implementing the Model within such subsidiaries;
• approving the annual programme of supervisory activities for Eni, coordinating its implementation and analysing the results;
• managing the flow of relevant information with the Company units and with the Watch Structures of the Italian subsidiaries.

The budget of the Eni Watch Structure is approved by the Board of Directors on the basis of the requests of the Watch Structure itself.

The Eni Watch Structure periodically reports on its activities to the Control and Risk Committee and the Board of Statutory Auditors, as well as to the Chairman and the CEO, who then informs the Board of Directors when reporting on the exercise of his delegated powers.

The Internal Audit Department is also responsible for conducting audits on behalf of the Eni Watch Structure, following a schedule set annually by the Watch Structure, which is an integral part of the Audit Plan. With regard to the audits performed on subsidiaries' processes and/or sub-processes, these supplement, but do not replace, the supervisory activities that the subsidiaries' Watch Structures are required to perform under their respective 231 Models.

With regard to the regulatory and organisational models of the subsidiaries, please refer to the following section "Model 231" in this Report.

Risk Committee

The Risk Committee of Eni SpA, presided over by the CEO of Eni SpA and comprised of Eni's top management, including the Head of the Internal Audit Department, provides advice to the CEO on the major risks facing the Company and, specifically, reviews and offers its opinion, at the CEO's request, on the main results of the integrated risk management process. The Chairman of the Board of Directors is invited to attend the Committee's meetings.

Compliance Committee

The Compliance Committee of Eni SpA, comprised of the heads of Corporate Affairs and Governance, Internal Audit, Accounting and Financial Statements, Integrated Compliance and Human Resources and Organization Departments, has been assigned a variety of duties, including reporting to the CEO of Eni SpA on the need to develop a new approach to compliance and/or governance matters, recommending the person, or if necessary, the workgroup, to oversee it.

The Watch Structure as Guarantor of the Code of Ethics

Main functions

Reporting

The Watch Structure and the Internal Audit Department

The Committee also approves the compliance areas and identifies the related area heads, submits proposals to the Chief Executive Officer for the appointment new compliance process owners in accordance with the Management System Guideline "Regulatory System", validates the compliance and governance models, and receives the Integrated Compliance Report and related updates for the committee's information.

Integrated Compliance Department and other compliance units

On July 28, 2016, the Eni Board of Directors approved a number of changes to the Company's organisational macro-structure in the area of the internal control and risk management system, forming the Integrated Compliance Department, which reports directly to Eni's CEO, effective since September 12, 2016.

The Head of the Integrated Compliance Department, who reports directly to the CEO of Eni SpA176, is appointed by the CEO in consultation with the Chairman of the Board.

The Integrated Compliance Department (DICOMP) is responsible for overseeing legal compliance issues (including corporate administrative liability, the Code of Ethics, anti-bribery practices, antitrust, privacy, consumer protection, market conduct, financial regulation and financial penalties) as well as supervising the model for integrated compliance designed to strengthen a culture and the effective pursuit of compliance in Eni, exploiting the operational synergies in the processes and controls provided for in the various models. Furthermore, for the compliance issues for which there are mechanisms external to DICOMP177, this unit, following discussion with the individual heads of the compliance area, establishes appropriate flows of information or coordination mechanisms.

In 2018, the model for the Integrated Compliance process was completed, and, in October, the Head of the Integrated Compliance Department presented the methodological principles underlying this process and the outcome of first-time application of the process to the Board of Directors, the Control and Risk Committee, and the Board of Statutory Auditors.

The head of DICOMP facilitates the dissemination of a culture of compliance among all who work at Eni, which includes determining specific initiatives of communication and training to increase awareness of exposure to risks and the ability to manage them and, in coordination with Eni's lines of business and various support functions, establishing measures to update existing systems of managing the primary risks.

For more information on the regulatory mechanisms with regard to compliance, including the Integrated Compliance process, see the chapter "Eni's Regulatory System" below.

Head of Integrated Risk Management

The Head of Integrated Risk Management (IRM) of Eni SpA, who reports directly to the CEO of Eni SpA178, is appointed by the CEO in consultation with the Chairman of the Board.

The Head of IRM ensures the conduct of IRM processes. He presents the results on a quarterly basis to the Risk Committee and to the Control and Risk Committee of Eni SpA, as well as, where requested, to other control and supervisory bodies. On at least a quarterly basis, the CEO submits the report on the risks to which Eni is exposed for examination by the Board of Directors.

The Head of IRM promotes the dissemination of a risk management culture within Eni, directed at all Eni personnel, which also involves identifying specific communication and training initiatives that

(176) Since September 2016.

⁽¹⁷⁷⁾ The compliance areas with mechanisms external to DICOMP include those that concern related parties transactions and the Market Information Abuse (Issuers), which are entrusted to the Corporate Affairs and Governance Department. (178) Since July 2016.

raise awareness of exposure to risk and how to handle it, as well as identifying, in coordination with Eni business lines and support functions, initiatives for the updating of existing management systems for the primary risks.

Eni Personnel and Management

As set forth in the Code of Ethics, the responsibility for implementing an effective internal control system is shared by all levels of Eni's organisational structure; consequently, all of Eni's personnel, consistent with their positions and duties, are called upon to define and actively participate in the proper implementation of the internal control system.

More specifically:

• the CEO and/or Chief Operating Officers, if any, are responsible for ensuring the development, implementation and maintenance of an effective and efficient internal control system and assign to the management for the operational areas the duties, responsibilities and powers for pursing this aim in the performance of their respective activities and in achieving the related objectives;
• in addition to the management Committees described above and the Head of Integrated Risk Management179, other units actively contribute to the ICRMS within the scope of their responsibilities. These include, for example, the Risk Owners who identify, assess, manage and monitor risks under their sphere of competence, as well as the adequacy and function of the controls put in place to oversee them.

Many training programmes and in-depth information sessions for Eni personnel and its boards focus on ICRMS and, especially, on compliance.

Eni Regulatory System

To ensure the integrity, transparency, propriety and effectiveness of its processes, Eni adopts rules for the performance of business activities and the exercise of powers, guaranteeing observance of the general principles of traceability and segregation.

Each component of that system is supplemented by the Company's Code of Ethics, which identifies the fundamental values, among others, of the formal and substantive legitimacy of the conduct of the members of corporate bodies and all employees, and transparency, also in term of accounting, and the dissemination of a mentality directed at the exercise of control.

Eni is fully aware that investors rely on the full compliance of the corporate bodies, management and employees with the set of rules making up the corporate internal control system.

The key features of the Eni Regulatory System

On July 28, 2010, Eni's Board of Directors approved the basic guidelines for the New Eni Regulatory System, with the goal of rationalising, supplementing and simplifying Eni's regulatory system. The Guidelines were updated on June 23, 2016 to bring the Regulatory System into line with Eni's new organisational structure, better integrating it with corporate processes and making it easier for the subsidiaries to use.

All of Eni's operational activities can be grouped into a map of processes instrumental to Company activities and integrated with control requirements and principles set out in the compliance and governance models, based upon the By-laws, the Code of Ethics, the Corporate Governance Code, Model 231 Principles, SOA Principles and the CoSO Report.

Principles and objectives of the Regulatory System

Guidelines for the Eni Regulatory System

GENERAL OVERVIEW OF THE REGULATORY SYSTEM

On October 26, 2017, the Board of Directors of Eni SpA, acting upon the proposal of the CEO, having first been examined by the Nomination Committee with regard to those matters in which it has expertise, and by the Board of Statutory Auditors with regard to the matters concerning Boards of Statutory Auditors, and having received the opinion of the Control and Risk Committee, updated the Management System Guideline ("MSG") "Corporate Governance for Eni companies" approved on May 30, 2013181 to bring it into line with, among other things, legislative changes, developments in the organisation, equity investments and regulations of Eni and the results of its application and best practices in this field. Governance system and rules for Eni companies

(180) Exemptions are allowed only in exceptional circumstances. There are no exemptions allowed for MSGs in compliance areas. At its meeting of March 15, 2018, the Board of Directors approved, having obtained the favourable opinion of the Control and Risk Committee, an extension of the scope of application of the Eni Regulatory System to also include Italian companies controlled in accordance with the provisions of the Civil Code but which are not classified in the financial statements as subsidiaries, unless that is ruled out by the provisions of by-laws or agreements with third-party shareholders that regard the regulatory system or other specific issues. (181) The MSG of May 30, 2013 replaced the previous rules in this field (Circular No. 351 and Circular No. 352 of April 24, 2009).

• governs the legal form and management and control system of Eni subsidiaries182, indicating the size, composition and operating principles for the relative bodies. Specific assessments relating to the risk profile of the company are used in identifying and composing the control body;
• defines strict requirements that the members of the management and control bodies of Eni investees that Eni appoints must meet in order to be given and retain such position183. Requirements are verified or evaluated and monitored, including through the submission of statements by the candidates, in order to ensure that the choices made are traceable and transparent. With regard to the members of the control bodies, in addition to the requirements provided for by the law and the By-laws, the MSG also introduces new requirements concerning integrity and independence or the absence of any conflict of interest, thereby confirming and expanding the provisions and recommendations of the Corporate Governance Code applicable to the statutory auditors of listed companies;
• defines roles and responsibilities in the process of designating the members of the administrative and control bodies. With regard to the appointment of members of the control bodies, the MSG calls for the creation of a database containing the names of potential candidates who meet the requirements, which are verified by the competent units;
• in order to ensure appropriate flexibility, it establishes: (1) the general causes of exemptions from the MSG, and the associated reporting flows, in the case of impediments caused by the presence of third-party shareholders, local or sectorial regulations or operational factors connected with the system of delegated powers; (2) that any exceptions to the application of the MSG shall be authorised by the Chief Executive Officer of Eni SpA, who shall obtain the opinion of the Heads of the competent functions or, in specific cases, directly by the heads of the competent functions.

Management System Guideline "Internal Control and Risk Management System"

Most recently on October 25, 2018, the Board of Directors of Eni SpA, at the proposal and subject to the prior opinion of the Control and Risk Committee, and having received the opinion of the Chairman on Internal Audit-related matters, approved the "Guidelines for the Internal Control and Risk Management System" (ICRMS), entrusting the CEO with their implementation.

These guidelines, which are mandatory for the subsidiaries, are designed to ensure that the main risks to which Eni is exposed are correctly identified, measured, managed and monitored and set out reference principles, roles and responsibilities for the key players in the system, as well as the criteria that the CEO must follow in implementing those guidelines.

The Management System Guideline for the internal control and risk management system (ICRMS MSG) represents the regulatory instrument with which the CEO, on most recently October 26, 2018, implemented the Board guidelines. These rules, in incorporating the principles (i) consolidate and structure within a single document the various elements of the Eni ICRMS, (ii) define the model of relations between Eni SpA and the subsidiaries in this area, and (iii) exploit the opportunities for the rationalisation of reporting flows and the integration of controls and monitoring activities.

The ICRMS MSG is used alongside the instruments issued on December 18, 2012 and most recently updated on July 4, 2016, with which Eni developed and implemented a model for the integrated management of corporate risks and a model for integrated compliance, issued on October 29, 2018.

Eni's reference framework for implementation and maintenance of an adequate and working ICRMS provides for a structure of three dimensions, as shown in the following diagrams:

Legal form of Eni subsidiaries

Requirements

Roles and responsibilities in the designation process and database

General causes of exemptions and exceptions. Information flows and authorisation

Board guidelines

Internal implementation rules

⁽¹⁸²⁾ The rules also apply to subsidiary consortiums, where applicable.

⁽¹⁸³⁾ Contract-based joint ventures other than consortiums are subject to specific rules provided for in internal anti-corruption regulations.

1st DIMENSION: CATEGORIES OF ICRMS OBJECTIVES

3rd DIMENSION: ICRMS PROCESS

Objectives	1) Objectives - The first dimension represents the view of the ICRMS in relation to the objectives and associated risks that the ICRMS is intended to pursue and manage: Strategic, Operational, Compliance and Reporting.
Scope of application	2) Scope of application - The second dimension regards the scope of application on the basis of which the ICRMS is structured: - the management and coordination exercised by Eni SpA over the subsidiaries; - entity: Eni SpA and the individual subsidiaries, on the basis of their legal and operational independence, establish an appropriate, functional ICRMS under their own responsibility; - processes adopted by Eni, on the basis of which the ICRMS is structured.
ICRMS Process	3) ICRMS Process - The third dimension represents the ICRMS process and its individual phases: - definition and implementation of the "internal environment"; - identification, assessment and treatment of risks; - definition and implementation of control activities; - monitoring; - re-examination and assessment of the entire system; - disclosure and communication.
	This ICRMS process is: - continuous, focusing on improving the overall ICRMS, influencing the definition and achievement of corporate objectives; - integrated into corporate operations, as well as organisational and governance arrangements; - interactive, as the individual phases, while organised into a logical sequence, can receive feedback from the development of each of the other phases so that the value generated by the process is not merely the sum of the value generated by the individual phases; - performed by people, through the activities (and the associated reporting) carried out in pursuing corporate objectives; - evaluated every six months, unless unforeseen events occur that may require that a special investigation be performed, to ensure that it is adequate and functions overall.
	The Eni ICRMS is structured along the following three levels of internal control:

(a) Director in charge of the internal control and risk management system.

(b) Including objectives on the reliability of nancial reporting.

(c) The Senior Executive Vice President Internal Audit reports hierarchically to the Board of Directors, and on its behalf, to the Chairman, without prejudice to his functional reporting to the Control and Risk Committee and to the CEO, as Director in charge of the internal control and risk management system.

• 1) First level of control: identifies, assesses, manages and monitors the risks for which it is responsible, for which it identifies and implements specific management actions.
• 2) Second level of control: monitors the main risks in order to ensure the effectiveness and efficiency of their management; also responsible for monitoring the appropriateness and operation of controls implemented for the main risks. It also provides support to the first level in defining and implementing adequate systems for managing the main risks and the associated controls.
• 3) Third level of control: provides independent, objective assurance on the appropriateness and effective operation of the first and second control levels and, more generally, on the Eni ICRMS as a whole.

The structure of the first and second control levels is consistent with the size, complexity, specific risk profile and with the regulatory environment in which each company operates.

The third level of control is exercised by the Internal Audit unit of Eni SpA, which, on the basis of a centralised model (described in the "Internal Audit" section), performs its controls using a risk-based approach to the overall Eni ICRMS, monitoring Eni SpA and the subsidiaries.

To enable management and the management and control bodies to perform their roles within the ICRMS, specific reporting flows have been established between the control levels and the management and control bodies. The flows are coordinated and appropriate in terms of content and timing.

All flows supporting the assessment of the ICRMS by the Board of Directors are channelled through the Control and Risk Committee of Eni SpA, whose analysis is reported directly to the Board in its periodic reports or through the release of specific opinions. These flows are also transmitted to the Board of Statutory Auditors of Eni SpA to enable it to perform its statutory duties in the field of ICRMS.

Implementation at subsidiaries

It is the responsibility of the board of directors or equivalent body of each Eni subsidiary to establish, manage and maintain its own ICRMS.

The three levels of control

Reporting to the Board

Eni SpA, as part of its management and coordination of the subsidiaries, issues and disseminates the guidelines (which are mandatory) and associated implementation model, which is contained in the ICRMS MSG, with which the subsidiaries must comply, establishing an adequate process for monitoring its implementation in the manner envisaged in the Eni Regulatory System.

Without prejudice to the principles regarding the Eni ICRMS, the subsidiaries may adopt the most appropriate procedures for implementing the ICRMS in a manner consistent with their size, complexity, specific risk profile and the regulatory environment in which they operate, with the independence that characterises the operation of the subsidiaries and their bodies and functions, including with regard to statutory requirements.

The role of the Board of Directors of Eni SpA in the subsidiaries

As envisaged in the ICRMS MSG and consistent with the recommendations of the Corporate Governance Code and in accordance with the powers reserved to itself, the Board of Directors of Eni SpA, having first received the opinion and the proposal of the Control and Risk Committee, establishes the ICRMS guidelines for Eni SpA, its major subsidiaries and the Eni Group.

The Board, having first received the opinion of the Control and Risk Committee, also examines the main risks facing the Company, identified by taking into account the nature of the business of the Company and its subsidiaries, as reported by the CEO on at least a quarterly basis. Having first received the opinion of the Control and Risk Committee, it also evaluates every six months (except in extraordinary circumstances) the adequacy of the internal control and risk management system of Eni SpA, its major subsidiaries and the Eni Group with regard to the nature of the business, its risk profile as well as the consistency with corporate objectives, as well as its effectiveness.

Most recently on its meeting of March 14, 2019, having consulted with the Control and Risk Committee, the Board of Directors judged as positive: (i) the adequacy and effectiveness of the Internal Control and Risk Management System in relation to the nature of the Company and its risk profile as well as the consistency with the corporate objectives; and (ii) the adequacy of the powers and resources available to the FRO, as well as the compliance with administrative and accounting procedures he has established184.

Management System Guideline "Internal Audit"

The Management System Guideline "Internal Audit" ("Internal Audit MSG"), prepared by the Head of the Internal Audit Department and approved by the Chairman of the Board of Directors, in consultation with the CEO and the Control and Risk Committee, was updated on May 25, 2018.

The Internal Audit MSG includes the guidelines for audit activity ("Internal Audit Charter") approved by the Board on May 24, 2018, consistent with the contents of the ICRMS MSG.

The Internal Audit MSG, which is based upon the Internal Audit Charter, seeks to identify and govern the phases and activities of the Internal Audit process, to indicate the roles and duties of the major participants and to establish the rules of behaviour and principles to be observed in performing such activity. Guidelines for the internal audit process

Definition of the Audit Plan

More specifically, the MSG regulates:

1) the definition of the Audit Plan, prepared by the Head of the Internal Audit Department and approved by the Board185, using a "top-down, risk-based" approach which makes it possible to identify audits to which priority should be given based upon, among other things, the objectives incorporated in the business and functional area programmes, as indicated in the Strategic Plan, and the size and coverage of the major business risks connected with it and based upon the results of the integrated risk management process;

(184) For more information, please see the first part of the section "Internal Control and Risk Management System" concerning the assessment by the Board of Directors of this Report.

(185) For more information, please see the section on "Internal Audit" of this Report.

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2) the performance of audits, both scheduled and non-scheduled (i.e. spot audits), by carrying out:

• preliminary activities to define the objectives and the scope of the audit over the areas potentially at highest risk ("risk-based" approach) and the resources deemed necessary and sufficient to achieve the objectives;
• verification, for the purpose of assessing the adequacy and effectiveness of controls on the risks relating to processes audited, to identify any issues and to formulate recommendations for improving the effectiveness and efficiency of the processes audited;
• formalisation and communication of the results in order to confirm, with the structures involved in the audits, any issues that emerged, the recommendations proposed for their elimination, and the timing and content of corrective actions to be taken by the structure that was audited.

For each audit a summary assessment is made of the actual design and operation of the ICRMS for the structure being audited (the so-called audit rating), based upon the knowledge gained and evidence acquired during the conduct of the audit and in the professional opinion of the Internal Audit Department. In the event of a spot audit, the rating is assigned based upon the finding of enough factors to support the opinion of the ICRMS;

• 3) the monitoring of corrective actions crafted on the basis of the audits, which is carried out in different ways based upon the problems encompassed in the rating of the ICRMS audited, such as:
  • monitoring of all actions through a periodic statement by the structure that was audited (socalled "follow-up by documentation");
  • operational check of the effective implementation of the corrective action through a dedicated follow-up (i.e. "on-site follow-up") for all actions connected with audit reports with more critical summary assessments of the ICRMS and those concerning higher priority issues not included in those above audit reports;
• 4) flows of information on the ICRMS, consisting of the periodic reports prepared by the Internal Audit Department in order to provide information on its activities, the results and correlated suggestions, the procedures for managing risks and the relative containment plans. These reports can be classified into three categories based upon their purpose, frequency of preparation and recipient:
  • semi-annual reports on the main results of the activities carried out by the Internal Audit Department, submitted simultaneously by the Head of the Internal Audit Department to the Chairman of the Board of Directors, the CEO, the Control and Risk Committee and the Board of Statutory Auditors of Eni SpA;
  • specific reports, usually annual, for the areas most heavily subject to auditing during the reporting period, prepared, with the goal of explaining the primary recurring internal control issues that cut across several areas and/or are of the greatest importance for the specific area, and the recommendations of common, coordinated actions to be taken. These reports are sent, to the extent the audit involves the area for which each is responsible, to the executives that report directly to the CEO of Eni SpA;
  • annual reports for the process owners of the Management System Guidelines containing a summary of the findings of the audit reports, as well as the outcome of reports received, and the correlated suggestions, so that the process owners can evaluate the need to make any adjustments to the outline of the MSGs for which they are responsible.

The Internal Audit MSG also governs other activities for which the Internal Audit Department is responsible, such as the handling of whistleblowing reports (including anonymous ones) received by Eni, pursuant to the relative regulations186, specialised support activities, relations with the control and oversight bodies and with the audit firm, as well as the "quality assurance and continuous improvement" programme for activities performed by the Internal Audit Department, which provides for the performance of an internal quality review at least every three years and an external quality review at least every five years.

Performance of audits

Monitoring of corrective actions

Information flows

Other activities

(186) For more information, please see the section "Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad" of this Report.

Management System Guideline "Integrated Compliance"

The Management System Guideline "Integrated Compliance" establishes the phases and activities of this process and the roles and responsibilities of the primary parties involved.

The Integrated Compliance MSG is consistent with the ICRMS guidelines concerning integrated compliance defined in the ICRMS MSG.

The goals of the Integrated Compliance process

The goal of the Integrated Compliance process is to promote compliance with laws and regulations applicable to Eni using an integrated, risk-based approach and to develop and disseminate a corporate culture founded on ethical values, proper conduct, and respect for laws and regulations, including by way of specific initiatives of training and awareness.

The compliance areas of relevance to Eni are determined based on the nature of the potential risks of non-compliance. This includes, in particular, issues for which the company could be held liable for violations of laws or regulations that entail criminal or administrative sanctions or other penalties imposed by the courts or administrative authorities.

The activities within the Integrated Compliance process are aimed at ensuring transparency and accountability in the process and uniformity in the adoption of approaches and mechanisms to support these activities. The process seeks to provide an integrated vision of compliance risks in line with company operations and to ensure the efficient management of compliance risk in observance of the principle of general compliance with applicable laws and regulations.

THE PROCESS OF INTEGRATED COMPLIANCE

The Integrated Compliance process

The Integrated Compliance process encompasses the following six sub-processes:

• 1) Compliance Governance, Modelling and Integrated Planning: this aims to determine the scope of legislation applicable to the compliance process (the "compliance areas"), to define the related governance process and related regulatory mechanisms, and to prepare the Integrated Compliance Plan.
• 2) Compliance Risk Assessment: this entails identifying, assessing and analysing risks in order to determine the most appropriate methods of dealing with such risks. More specifically, this is intended to be a set of activities aimed at assessing the related risk profile, the intensity of the mitigation efforts, and the residual risk profile of the compliance areas in order to recommend a prioritisation of risks and determine potential actions to better mitigate risk and to optimise the risk-based system of controls.
• 3) Control activities: these are aimed at verifying that the actions for managing risk are implemented. More specifically, this refers to carrying out control activities in line with the MSGs and other applicable regulatory mechanisms in accordance with the Regulatory System MSG.
• 4) Compliance Monitoring: within the scope of the activities, this seeks to verify over time (i) the proper identification and evolution of risks and (ii) the proper management of risks, as well as the adequacy and functioning of established controls, periodically measuring and analysing compliance risks based on specific controls and indicators discussed with the heads of the compliance areas at varying frequencies.
• 5) Compliance Reporting: this is the consolidation and integrated reporting of the relevant information and outcomes of the Integrated Compliance process based on information received from the heads of the compliance areas and/or from other functions involved in the measurement, assessment, management, or monitoring of compliance risks.
• 6) Culture, training and information: this involves the definition of models of training and communication with regard to compliance as well as the implementation of training programmes related to the various compliance areas and monitoring of their actual use and the implementation of communication efforts aimed at increasing awareness within Eni of the compliance risks employees may encounter in the performance of their duties.

Integrated Compliance Reporting

The Integrated Compliance Department provides adequate information and an integrated view of the status of Eni's compliance efforts to top management, management and to the Company's control bodies in order to enable them to assess the efficacy and continuing adequacy of the system of managing compliance risk, while supporting informed decision making.

This includes preparation of an annual Integrated Compliance Report, which includes an assessment by the head of Integrated Compliance concerning the adequacy of the Management System Guideline concerning the compliance areas covered therein.

This report is submitted to the Compliance Committee, the Risk Committee, the CEO, the Control and Risk Committee, the Board of Statutory Auditors, and the Watch Structure. The CEO submits this Integrated Compliance Report to Eni's Board of Directors.

The head of Integrated Compliance also provides the CEO, the Control and Risk Committee, the Board of Statutory Auditors, the Watch Structure, the Risk Committee, and the Compliance Committee with a semi-annual update to the report (unless extraordinary events make other updates necessary) based on the results of Integrated Compliance process for the period and any relevant events occurring during the period.

Management System Guideline "Integrated Risk Management"

The Management System Guideline "Integrated Risk Management"187 details the various phases and activities of the Integrated Risk Management (IRM) process, the roles and responsibilities of the main actors involved.

The IRM process, which is based on a structured, systematic approach, is designed to ensure that the main business risks, including over the medium and long term, can be effectively identified, measured, managed, monitored, represented and, where possible, translated into opportunities and competitive advantages. It uses a top-down, risk-based approach that starts with helping prepare Eni's Strategic Plan and continuing with implementation through periodic risk assessment & treatment and risk monitoring cycles and analysis of the specific risk profiles of the more significant operations in order to support the authorisation process of the Eni Board of Directors.

The Integrated Compliance Report

Rules of the integrated risk management process

The elements of the integrated risk management model

Risk Governance

This model for the integrated management of corporate risks forms an integral part of the Internal Control and Risk Management System (ICRMS) and has been prepared to be consistent with international principles and best practices188.

The model is composed of the following elements:

• 1) Risk Governance: this represents the basic system from the point of view of the roles, responsibilities, and reporting flows for the management of the Company's main risks; the model establishes roles and responsibilities for three distinct levels of control of these risks, consistent with the provisions of the ICRMS;
• 2) Process: this represents all the activities by which the various actors identify, measure, manage and monitor the main risks that could influence whether Eni achieves its objectives;
• 3) Reporting: this identifies and represents the results of risk assessment and monitoring, highlighting the most important risks, evaluating them in terms of probability and potential impact and identifying the associated risk treatment plans and analysing trends during the year. Reporting can also include the results of special assessments of specific issues (e.g. "What-if analysis", Country risk, reputational risk, etc.).

More specifically:

1) With regard to Risk Governance, the following have been established:

a) the Risk Committee, chaired by the CEO and composed of the top management of Eni SpA, including the Head of Internal Audit. It provides advice to the CEO on the main risks to which Eni is exposed. In particular, it examines and expresses opinions, at the request of the latter, concerning the main results of the Integrated Risk Management process. The Risk Committee invites the Chairman of the Board of Directors to attend its meetings;

b) the Integrated Risk Management unit, which reports directly to the CEO and its Head is appointed by the CEO in consultation with the Chairman of the Board. Among other duties, it:

• identifies tools/methods for the Integrated Risk Management process to identify, measure, represent and monitor the main risks and the associated plans for managing them;
• performs Integrated Risk Management sub-processes (risk management guidelines, risk strategy, risk assessment & treatment, risk monitoring risk reporting and risk culture);
• presents findings of IRM activities to the Risk Committee and, every three months, to the Control and Risk Committee/Board of Statutory Auditors and to the Board of Directors as well as to other control and surveillance bodies where requested;
• identifies, in cooperation with the business areas and functions of Eni, proposals for updating the risk management systems;
• promotes the dissemination of a risk management culture within Eni.

The Board of Directors examines the major risks, identified by taking account of the characteristics of the activities conducted by the Company and its subsidiaries, reported on by the CEO at least once every three months;

(188) This refers, among others, to the CoSO – Committee of Sponsoring Organisations of the Treadway Commission (2013), Internal Control, Integrated Framework ISO 31000:2009 – Principles and Guidelines on Implementation.

2) The IRM process is composed of six sub-processes: (i) risk management guidelines; (ii) risk strategy; (iii) risk assessment & treatment; (iv) risk monitoring; (v) risk reporting and (vi) risk culture.

Specifically:

• i) the risk management guidelines sub-process: refers to the definition by the Eni SpA Board of Directors of the nature and level of risk compatible with strategic objectives, as well as the policy on risk management so that the main risks are correctly identified and appropriately measures, managed and monitored, determining the extent of their compatibility with operating the Company in a manner consistent with strategic objectives;
• ii) the risk strategy sub-process: its purpose is to contribute to the preparation of the Strategic Plan and the management performance plans by developing proposals for risk reduction targets and strategic treatment actions, as well as analysing the plan's underlying risk profile; this subprocess, integrating the IRM process with Strategic Planning, assists the Eni Board in assessing the acceptability of underlying risks of the plans that are brought to its attention;
• iii) the risk assessment & treatment sub-process: includes "periodic action" for performing and ensuring a systematic, integrated analysis of the risk profile associated with the strategic objectives approved by the Eni Board of Directors by identifying, assessing and prioritising the main business risks and the associated treatment actions; there is also "event-based action" to assist management in making decisions using an integrated analysis of the risks posed to Eni's significant operations or portfolio of assets (by Country, business, etc.) by assessing the risk/returns of specific initiatives/activities and, if material, the relative impact on the Company's overall risk profile;
• iv) the risk monitoring sub-process: undertaken to provide dynamic information on the evolution of the main risks by analysing specific indicators, as well as to rapidly identify any critical operational issues (in order to take appropriate treatment actions) and to help in discovering any new risks;
• v) the risk reporting sub-process: for ensuring the adequate and timely delivery of information to the administration and control bodies and to management so as to help improve Eni's risk management by assisting them in making informed decisions;
• vi) the risk culture sub-process: seeks to develop a common language and spread a suitable risk management culture at all organisational levels in order to reinforce the message that appropriate identification, assessment and management of risks of all kinds can impact the achievement of objectives and on the Company's value. The risk culture sub-process also aims to expand the use of risk management in corporate processes to ensure that the methodologies and, more generally, the risk management and control tools are consistent.

The Board, on at least a semi-annual basis, assesses the adequacy and effectiveness of the Internal Control and Risk Management System in relation to the characteristics of Eni and the risk profile assumed, which must be compatible with corporate objectives.

Integrated Risk Management Reporting

In 2018, the quarterly Integrated Risk Management reporting (IRM) by the CEO to the Board of Directors, subject to prior examination by the Risk Committee and the Control and Risk Committee, was structured in the following phases:

• monitoring of primary corporate risks presented on March15, 2018. On that same date the results of the "what if" analysis on the objectives of the 2018-2021 Strategic Plan were presented;
• findings of the Annual Risk Assessment189 presented on July 26, 2018, along with a summary of the monitoring indicators for Eni's top risks on the basis of a process that also involved 80 subsidiaries in 27 Countries; on that same date an update was given on other ongoing activities (Digitalization and Integrated Country Risk);
• monitoring of top risk presented on October 25, 2018; on that same date, it was provided with a focus on main top risk monitoring and mitigation activities and an overview of activities under way (Risk assessment – data quality and assessment of effectiveness of mitigation efforts);
• Interim Top Risk Assessment presented on December 13, 2018, with an update on top risk that emerged in the 2018 Annual Risk Assessment and the main business risks; on the same date it was provided a focus on specific issues/projects (Integrated Country Risk, Climate-related risks, Reputational Risk and Digital Transformation).

The quarterly Integrated Risk Management reporting

The IRM process

Main features of the Risk Management and Internal Control Systems applied to the financial reporting process (MSG "Eni Internal Control System over Financial Reporting")190

The internal control system applied to financial reporting aims to provide reasonable certainty about the reliability191 of financial reporting and of the capability of the financial report drafting process to yield financial reporting that complies with the generally accepted international accounting principles.

Eni Internal Control System over Financial Reporting

The rules and methods for the design, implementation and maintenance of Eni's internal control system applied to financial reporting for external purposes and the assessment of its effectiveness are set out in the Management System Guideline "Eni Internal Control System over Financial Reporting"192 (hereinafter in this section also "ICSFR MSG") approved by the Board of Directors of Eni on December 11, 2014.

As presented below, the design, implementation and maintenance of the control system over financial reporting are conducted through a structured process that provides for a risk assessment phase, the development of controls for those risks, the assessment of the controls and the reporting process:

Legal framework and CoSO Report	The contents of the ICSFR MSG were defined in accordance with the provisions of Art. 154-bis of the Consolidated Law on Financial Intermediation and with the US Sarbanes-Oxley Act of 2002 (SOA), to which Eni is subject as an issuer listed on the New York Stock Exchange (NYSE) and were analysed in the light of the new framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (CoSO) in May 2013, which, while 5 components of the internal control system remained unchanged193, developed 17 principles whose correct implementation is essential to ensure its effectiveness.
	The 17 principles of the CoSO Report regard in particular: (i) structural elements of the internal control system established with the ICSFR MSG; (ii) control activities contained in other Eni regulatory instruments (such as for example, Policies, the Compliance and Process MSG, and Procedures) and refer to best practices already adopted by Eni.
Applicability to the subsidiaries	The MSG applies to Eni SpA and its direct or indirect subsidiaries, including listed companies, in compliance with international accounting standards, consistent with their materiality to Eni's financial reporting.
	All subsidiaries, regardless of their materiality for the purposes of the Eni Internal Control System over financial Reporting, adopt the MSG as a reference framework for planning and implementing their own Internal Control System over financial Reporting, tailoring it to their size and the complexity of the activities carried out.
Risk Assessment	The risk assessment process, which is conducted using a top-down approach, seeks to identify the companies, processes and specific activities that may generate risk of unintentional errors or fraud that may have a significant impact on the financial statements.
	(190) This section is also provided in accordance with Art. 123-bis, paragraph 2, letter b), of the Consolidated Law on Financial Intermediation. (191) Reliability (of reporting): reporting that is accurate and complies with generally accepted accounting principles and meets the requirements of applicable law and regulations. (192) This MSG updates and replaces the previous Management System Guideline in this area adopted by the Board of Directors on May 30, 2012. The new version of the ICSFR MSG has only been amended to align it with the changes in the organizational structure and ensure consistency with information flows, explicating the role of the Control and Risk Committee in examining the report of the Chief Financial Officer/Financial Reporting Officer (CFO/FRO) to the Board of Directors on the status of the internal control system over financial reporting. (193) Represented by the control environment, risk assessment, control activities, information and communication and monitoring.

In particular:

• the companies that fall within the scope of the control system applied to the financial reporting process are identified both on the basis of the contribution of the various entities to certain aggregates of the consolidated financial statements (total assets, total financial debt, net revenues, income before tax), and considering the existence of processes that contain specific risks that – if they were to materialise – could jeopardise the reliability and accuracy of financial reporting (such as fraud-related risks194);
• for companies falling within the scope of the control system applied to the financial reporting process, material processes are subsequently identified, analysing the quantitative factors (processes that contribute to items of the financial statements in amounts exceeding a given percentage of income before tax) and qualitative factors (e.g., the complexity of the accounting treatment of the account; measurement and estimation processes; new or significant changes in business conditions);
• the risks associated with material processes and activities, i.e. potential events that if they were to materialise – could jeopardise attainment of the control objectives with regard to financial reporting (e.g., financial statement assertions) are identified;
• the identified risks are assessed in terms of their potential impact and probability of occurrence, on the basis of quantitative and qualitative parameters and assuming the absence of a control system (inherent risk). In particular, with reference to fraud risks195 at Eni, a dedicated risk assessment is conducted using a specific methodology for "anti-fraud programmes and controls" referred to in the MSG.

A control system has been defined for material companies, processes and the associated risks that is based on two fundamental principles, namely: (i) the application of controls at all levels of the organisational structure, in accordance with their operating responsibilities and (ii) the sustainability of controls over time, so as to ensure that their implementation is integrated and compatible with operational requirements.

The structure of the control system applied to the financial reporting process includes controls implemented at the entity level and at the process level:

• the controls implemented at the entity level are organised into a checklist developed in accordance with the model adopted in the CoSO Report, which is based on five components (the control environment, risk assessment, control activities, information and communication, monitoring). Of particular importance are the controls relating to the specification of the timetable for preparing and disseminating financial results ("semi-annual and annual financial statements circular" and the associated calendars); the existence of appropriate organisational structures and a regulatory framework adequately designed to ensure the achievement of financial reporting objectives (these controls include, for example, the review and updating by specialised Company units of the Group's regulations concerning financial reporting and the Group's chart of accounts); training in accounting standards and the internal control system applied to financial reporting; and, finally, activities concerning the information system for managing the consolidation process (Mastro);
• the controls implemented at the process level are grouped as follows: (i) specific controls intended as a set of manual or automated activities aimed at preventing, identifying or correcting errors or irregularities that occur during the course of operational activities; (ii) and pervasive controls intended as structural elements of the control system applied to financial reporting and aimed at defining a general context that promotes the correct execution and control of operational activities (such as, for example, the segregation of incompatible tasks and general computer controls, which include all controls designed to ensure the correct operation of IT systems). In particular, among the specific controls, the Company procedures identify the so-called "key controls", the absence or non-functioning of which can give rise to the risk of errors/fraud that impact the financial statements and that cannot be identified by other controls.

Both the controls implemented at the entity level and the controls implemented at the process level are subject to evaluation (monitoring) to verify the effectiveness of their design and actual functioning over time.

(194) The companies considered within the scope of the internal control system include companies formed and regulated in accordance with the laws of Countries that do not belong to the European Union, to which the provisions of Article 15 (formerly Article 36) of the Consob Markets Regulation apply.

(195) Fraud: within the control system, any intentional act or omission leading to deceptive disclosures.

Control system

Controls at entity level

Controls at process level

Evaluation of controls (monitoring)

	For this purpose, the following activities have been defined: on-going monitoring activities – carried out by the management responsible for the relevant processes/activities – and separate evaluations – performed by the Internal Audit Department, which uses agreed audit procedures on the basis of a plan transmitted by the Chief Financial Officer/Financial Reporting Officer (CFO/FRO) – aimed at defining the scope and objectives of the interventions through agreed audit procedures. In addition to its independent monitoring activities, the Internal Audit Department, on the basis of the annual Audit Plan approved by the Board of Directors and prepared using a "top-down, risk-based" approach, carries out compliance, financial and operational audits.
	The findings of the independent monitoring conducted by Internal Audit and the periodic reports containing an assessment of the appropriateness of the ICRMS emerging from the audit activities performed are transmitted to the CFO/FRO, as well as top management and the control and supervisory bodies for the purpose of conducting the evaluations for which they are responsible.
	The monitoring activities allow identification of any deficiencies in the control system applied to financial reporting that are subject to evaluation in terms of probability and impact on Eni's financial reporting. On the basis of their importance, they are classified as "deficiencies", "significant weaknesses", or "serious deficiencies".
Reporting	The results of the monitoring activities are included in a periodic report on the state of the control system applied to financial reporting. This reporting is conducted using computerised tools that enable the traceability of information on the adequacy of the design and functioning of the controls.
FRO/CFO's report	On the basis of this reporting activity, the CFO/FRO drafts a report on the adequacy and actual implementation of the control system applied to financial reporting.
	This report – following approval by the CEO – is submitted to the Board of Directors, after review by the Control and Risk Committee, during the approval of the draft annual and semi-annual financial statements, in order to ensure the execution of the aforementioned supervisory activities and evaluations regarding the internal control system applied to financial reporting. Furthermore, the above-mentioned report is also transmitted to the Board of Statutory Auditors, in its role as the "Audit Committee" pursuant to US law.
Assessment by the Board of Directors	Most recently in its meeting of March 14, 2019, the Board of Directors having consulted with the Control and Risk Committee, judged as positive: (i) the adequacy and effectiveness of the Internal Control and Risk Management System in relation to the nature of the Company and its risk profile as well as the consistency with the corporate objectives; and (ii) the adequacy of the powers and resources available to the FRO, as well as the compliance with administrative and accounting procedures he has established196.
	Finally, the activities of the CFO/FRO are supported in Eni by various persons whose duties and responsibilities are defined in the MSG referred to earlier.
Line monitoring	In particular, the control activities involve all levels of Eni's organisational structure, from the operational business managers and unit managers to the administrative managers and the CEO. In this organisational context, a particularly important role in the internal control system is carried out by the person who performs line monitoring (the so-called "tester"), who assesses the design and operation of the specific and pervasive controls, providing information for reports on monitoring activities and any deficiencies encountered, in order to ensure the timely identification of any necessary corrective actions.

(196) For more information, please see the first part of the section "Internal Control and Risk Management System" concerning assessment by the Board of Directors of this Report.

Model 231

In accordance with the Italian regulations concerning the "administrative liability of legal entities deriving from criminal offences" contained in Legislative Decree No. 231 of June 8, 2001 (henceforth, "Legislative Decree No. 231/2001")197, legal entities, including corporations, may be held liable – and consequently fined or subject to prohibitions – in relation to certain crimes committed or attempted in Italy or abroad in the interest or for the benefit of the Company. Companies may nonetheless adopt an appropriate organisational, management and control model (the compliance model or, hereinafter, Model 231) to prevent such offences.

Eni's Model 231 establishes the control arrangements (general transparency standards for activities and specific control standards) for the purpose of preventing the offenses envisaged under Legislative Decree No. 231/2001 that have been incorporated into the relevant Company procedures.

The CEO, who is already in charge of implementing Model 231, is also responsible for updating it. The CEO is supported in performing this duty by the Technical Committee 231198.

Following approval by the CEO:

• any amendments and/or additions that do not regard the general principles of Model 231 or that regard solely the document "Sensitive Activities and Specific Control Standards of Model 231" take effect immediately and are submitted to the Board of Directors for ratification at the first subsequent meeting, subject to notification of the Board of Statutory Auditors. In any event, the Board of Directors retains the power to propose additional amendments or additions;
• updates of Model 231 that regard the general principles are approved with a resolution of the Board of Directors, subject to notification of the Board of Statutory Auditors.

The Technical Committee 231, subject to notification of the Watch Structure, may make merely formal amendments of Model 231 and the document "Sensitive Activities and Specific Control Standards of Model 231" independently.

The so-called "general part" of Model 231 (i.e. the section setting out the architecture and governance principles of the compliance model)199 was updated most recently with a resolution of the Board of Directors at its meeting of November 23, 2017, taking account of the experience acquired, developments in case law and legal interpretation as well as the evolution of Legislative Decree No. 231/2001 and organisational changes at Eni. The most recently approved changes to the general part are intended to show that, in line with the new compliance model, foreign subsidiaries, unlike the Italian subsidiaries, are no longer required to establish formal Model 231 arrangements but rather to implement comparable compliance models adapted to the specific features of the local legislative context to manage and control activities at risk of exposure to corporate administrative liability.

With regard to the so-called "special part", the new version of the document "Sensitive Activities and Specific Control Standards of Model 231", which specifies sensitive activities for the purposes of Legislative Decree No. 231/2001 and sets out the associated control measures, was most recently approved on July 20, 2018 by the CEO of Eni SpA. The new version reflects the regulatory innovations introduced by EU Regulation No. 596/2014 of April 16, 2014 and the associated implementing regulations concerning "market abuse".

Eni's Code of Ethics, which is covered in a specific section of this Report, is an integral part and essential general principle of Model 231.

(197) The current scope of application of Legislative Decree No. 231/2001 comprises: (i) offenses against the public administration and the public faith; (ii) corporate offences; (iii) crimes associated with the subversion of the democratic order and terrorist financing; (iv) offenses against individual personhood; (v) market abuse ("abuse of inside information" and "market manipulation"); (vi) crimes against the person; (vii) transnational crimes; (viii) manslaughter and serious negligent personal injury in violation of workplace health and safety regulations; (ix) the handling of stolen goods, money laundering or the use of money, goods or benefits of illegal origin as well as self-laundering; (x) computer crimes and the illegal processing of data; (xi) organised crime; (xii) crimes against industry and commerce; (xiii) copyright violation; (xiv) inducement to withhold statements or to make false statements to judicial authorities; (xv) environmental crimes; (xvi) bribery between private parties; (xvii) undeclared labour; (xviii) illicit brokering and exploitation of labour. (198)The Technical Committee 231 is composed of units from the Legal Affairs, Human Resources and Organization, Internal Audit and Integrated Compliance Departments.

(199) At its meetings of December 15, 2003, and January 28, 2004, the Board of Directors of Eni approved an organisational, management and control model pursuant to Italian Legislative Decree No. 231/2001 (hereinafter "Model 231") and established the associated Eni Watch Structure.

Italian Legislative Decree No. 231/2001

Eni Model 231

Responsibility for updating

Code of Ethics as an integral part of Model 231

Regulatory and organisational models for subsidiaries

Eni SpA promotes the adoption and effective implementation by all subsidiaries of appropriate system to prevent the risk of corporate liability arising in connection with criminal offences.

The MSG on the "Compliance model concerning corporate responsibility for the Italian subsidiaries of Eni – WS composition", adopted by the Board of Directors di Eni, defines, without prejudice to the subsidiaries' autonomous powers of initiative and control: (i) the criteria for determining the composition of the Watch Structures of the Italian subsidiaries and for selecting their members; (ii) the guidelines to be followed by each Watch Structure in performing its duties. The Management System Guideline (MSG) "Compliance model concerning corporate responsibility for the foreign subsidiaries of Eni" defines the compliance model for dealing with the corporate responsibility of the foreign subsidiaries of Eni SpA, structured as a function of the risk exposure of the companies. In 2018, in order to monitor corporate liability for high-risk foreign subsidiaries, with the support of the Integrated Compliance Department of Eni SpA, a Compliance Supervisory Body was appointed in the place of the Watch Structure. Analogously, to address high-and medium-risk foreign subsidiaries, with the support of the Integrated Compliance Department of Eni SpA, the Local Compliance Committees, composed of members of the foreign subsidiary's management, were established and began their work in 2018. Unlike the previous model, this new compliance structure enables a more effective risk-based focus on the categories of criminal offenses provided for under Italian Legislative Decree No. 231/2001 that are theoretically relevant in the context of the operations of the foreign subsidiaries and addresses the most significant risks of corporate liability deriving from applicable legislation in the various Countries in which the companies operate. The representatives designated by Eni on the corporate bodies of associates, consortia and joint ventures promote the adoption of systems to prevent the risk of corporate liability arising in connection with criminal offenses that are consistent with the measures adopted by the Eni Group companies, within their respective spheres of responsibility. Commitment, awareness, dissemination of the compliance culture and training The Board of Directors plays a fundamental role with regard to Model 231 issues since it has reserved to itself the power to approve the general part of the Model 231 and the above-mentioned MSG on the Compliance model concerning corporate liability for the Italian subsidiaries, and to establish and appoint the members of the Watch Structure of Eni SpA, on whose activities it receives periodic reporting through the CEO. The CEO is responsible for implementing and updating Model 231, in compliance with the powers conferred to him by the Model itself. The Eni Watch Structure ensures the preservation and facilitates the distribution, which may be done using internal regulatory instruments, to the relevant Company units of information on sensitive activities and control standards approved by the CEO during Model 231 updates. Furthermore, in accordance with provisions of the law, a disciplinary system for punishing any violations of Model 231 and failure to comply with corporate procedures for implementing control system were incorporated into the Model. In 2018, Eni continued to provide e-learning training on aspects of the Code of Ethics and on Model 231 issues, for low-level employees-newly hired employees, young graduates, managers and top managers, with the degree of further training diversified by roles and positions. Anti-Corruption Compliance Programme The model for the Italian subsidiaries of Eni The model for the foreign subsidiaries of Eni The role of Eni's Board The role of the Watch Structure The disciplinary system Training on 231

In accordance with the principle of "zero tolerance" of corruption expressed in the Code of Ethics, Eni has sought to manage other risks which may be encountered by the Company in its business activities by implementing a comprehensive system of rules and controls to prevent corruptionrelated crimes (the Anti-Corruption Compliance Programme). Rules and controls for preventing corruption

The Eni Anti-Corruption Compliance Programme is characterised by its dynamism and constant attention to evolving national and international legislation and best practices. It was developed in accordance with the applicable anti-corruption legislation and with international conventions, including the United Nations Convention Against Corruption, the US Foreign Corrupt Practices Act and the UK Bribery Act.

The primary internal rules are currently represented by the Anti-Corruption MSG and additional detailed regulatory instruments that constitute the reference framework for identifying the risk areas and control instruments that the Company provides personnel to prevent and counteract the risk of corruption. All the subsidiaries of Eni, in Italy and abroad, adopt both the Anti-Corruption MSG and all the other anti-corruption regulatory instruments through a resolution of their Board of Directors.

Eni also does all it can to ensure that the Company and the entities in which Eni has a non-controlling interest comply with the standards set out in its internal anti-corruption rules, adopting and maintaining an adequate internal control system that complies with the requirements of anticorruption legislation.

To ensure that its Anti-Corruption Compliance Programme is effective, in 2010 Eni created a dedicated organisational unit that is charged with providing specialist anti-corruption assistance to Eni and its subsidiaries in Italy and abroad. The unit is within the "Integrated Compliance" Department, reporting directly to the Chief Executive Officer.

With regard to the activities carried out by the anti-corruption unit, specialised anti-corruption assistance activities continued in 2018 in relation to the activities of Eni SpA and its subsidiaries, with particular reference to the assessment of the reliability of partners ("anti-corruption due diligence"), the management of any critical issues/red flags that may have emerged and the preparation of the related contractual safeguards in areas at risk of corruption. In particular, the Anti-Corruption MSG establishes that the results of the due diligence process, including any observations of the anti-corruption unit, shall be brought to the attention of the person or body authorising the related transaction, including the Board of Directors.

Internal rules and mandatory adoption for subsidiaries

Anti-Corruption Compliance unit

Anti-corruption due diligence

Reporting to control bodies	Furthermore, the anti-corruption unit is responsible for maintaining an adequate flow of information to Eni's supervisory bodies, drafting a semi-annual report on its activities for submission to the Watch Structure, the Board of Statutory Auditors, the Control and Risk Committee and the Chief Financial Officer of Eni SpA.
Training	The anti-corruption training programme for Eni personnel includes both online courses (e-learning) and training events in the classroom (workshops). These workshops are held by the anti-corruption unit, taking account of the Corruption Perception Index prepared annually by Transparency International and the presence of Eni in the individual areas. The workshops offer a general overview of the anti-corruption laws applicable to Eni, the risks that could derive from their violation by individuals and entities and the Anti-Corruption Compliance Programme that Eni has adopted and implemented to deal with these risks, using an interactive and engaging format based on case studies, with multiple choice questions to test the level of understanding of the topics covered. ANTI-CORRUPTION TRAINING PROGRAMME
	951	NUMBER OF PERSONNEL TRAINED IN 2018
	E-learning for managers
	E-learning for other personnel 1,950
	General workshops 1,765
	Job specific training 1,461
	Moreover, in 2018, the anti-corruption unit launched an anti-corruption training programme for several Business Associates. The anti-corruption unit also continued a series of messaging activities and periodic updating on anti-corruption issues, including through anti-corruption newsletters addressed to anti-corruption focal points and the compliance officers in the business areas, the organisation of anti-corruption round tables for compliance officers, which accompany the Compliance Flashes200 of the Integrated Compliance Department, periodically addressed to the Company's top management.
Participation in conferences and working groups	Eni continues to gain experience in the area of anti-corruption through its on-going participation in international conferences and working groups that represent, for Eni, an instrument for growth and for promoting and disseminating its values. In this connection, in 2018 Eni participated in the following international working groups: PACI and O&G ABC Compliance Attorney Group (a discussion group

The global assessment by independent legal expert

Certification ISO 37001:2016

With regard to external assessments of Eni's Anti-Corruption Compliance Programme:

addressing anti-corruption issues in the Oil & Gas industry).

• in 2013 a global assessment was performed by an independent legal expert to assess the effectiveness of the Anti-Corruption Compliance Programme, both in terms of the adequacy of its procedural design and the effective application of such design. The assessment found that both the design and application of the Compliance Programme were sound overall, in line with the appropriate benchmarks and international best practices;
• on January 2017 Eni SpA successfully completed the verification process carried out by a leading certification company in Italy of its Anti-Corruption Compliance Programme to evaluate whether the programme meets the requirements of ISO 37001:2016 "Antibribery Management Systems", the first international standard for Anti-Corruption Management Systems;
• in December 2017 and December 2018, the certifying entity conducted two surveillance audits involving interviews with the functions involved and an examination of a sampling of documentation. Both surveillance audits had positive outcomes.

(200)These are information briefs drawn from freely accessible sources concerning integrity and, more generally, compliance issues (including any anti-corruption issues) that may be of interest to Eni in view of the themes addressed or geographical areas to which they refer. In order to ensure compliance with antitrust legislation, which falls within the scope of legislation to safeguard fair competition as expressly referenced in the Code of Ethics, Eni has adopted specific rules aimed at disseminating awareness of antitrust legislation within Eni and its Italian and foreign subsidiaries and at ensuring adequate oversight in order to prevent any violations.

With a view to continuous improvement, these rules have been subsequently updated and most recently transformed, in April 2017, into the Antitrust Compliance Programme, as formalised in the Management System Guideline Antitrust (Antitrust MSG), which applies to Eni and its subsidiaries. Eni further undertakes to exert influence over the various enterprises in which the company does not hold a controlling interest such that they will adopt guidelines similar to those of the Antitrust MSG.

In implementation of the Antitrust Compliance Programme, a specific company function is responsible for conducting assessments of how business initiatives comply with antitrust legislation, including identification of related risks and specifying controls to mitigate those risks, as well as for conducting periodic analyses of the adequacy of the Antitrust Compliance Programme, taking account of the risks encountered and related guidelines and best practices, also with a view to proposing potential updates, and for overseeing related training programmes.

Privacy and Consumer Protection

Eni has established guiding principles concerning data protection in its Code of Ethics and has long been committed to implementing policies to protect the personal data of its employees, customers, suppliers, shareholders, partners, stakeholders, and all other persons with which the organisation comes into contact. To this end, Eni long ago adopted a specific Management System Guideline (MSG), and this MSG has recently been updated to comply with Regulation (EU) No. 2016/679 (i.e. the General Data Protection Regulation, or "GDPR").

This Privacy and Data Protection MSG represents the heart of the Privacy Compliance Model of Eni and its subsidiaries in Italy and abroad and establishes a system for protecting the rights and personal data of data subjects.

Eni has appointed a central Data Protection Officer (DPO) for the Group, a position required by law, who is responsible for providing information and advice on data protection issues and for overseeing the application of related laws and regulations. A specific company function is also responsible for overseeing coordination with the subsidiaries and ensuring the flow of information between the DPO and the company functions or third parties involved, while also providing specialist support to Eni and its subsidiaries and helping to design initiatives with an impact on privacy and data protection ("privacy by design"), supporting Eni and its subsidiaries in adopting an organisational structure and processes that comply with applicable laws and regulations, including the guidelines and other recommendations of regulators, and overseeing training programmes.

Eni has also adopted a specific MSG entitled "Code of Commercial Practice and Advertising", which was updated in 2017 in response to the gradual establishment of a code of European consumer rights and which includes both rules concerning unfair commercial practices towards consumers and small businesses and the rights of consumers in agreements entered into remotely, as well as other applicable regulations (e.g. e-commerce, non-discrimination, etc.).

A specific company function is also responsible for providing specialist support concerning laws and regulations protecting consumers and small businesses, assisting Eni and its subsidiaries in Italy and abroad in adopting marketing and other commercial practices in line with best practice and with the principles of professional integrity as well as internal processes that comply with applicable laws and regulations and with guidelines provided by competent local authorities. This function is also responsible for overseeing related training programmes.

The Management System Guideline Antitrust

The Privacy and Data Protection Management System Guideline

The Data Protection Officer and the coordination with the subsidiaries

The MSG Code of Commercial Practice and Advertising

Procedure for whistleblowing reports (including anonymous complaints) received by Eni SpA and subsidiaries in Italy and abroad

	The Board of Statutory Auditors of Eni SpA, in its capacity as the "Audit Committee" provided for under US legislation in application of the Sarbanes-Oxley Act of 2002 approved, most recently on April 4, 2017, internal rules governing the receipt (with the creation of easily accessible information channels and published on the Company's website), analysis and processing of reports, including those transmitted in confidential or anonymous form to Eni, concerning internal control issues, financial reporting, the Company's administrative liability, fraud or other matters (so-called whistleblowing reports).
	These internal rules are currently being updated to take account of changes in the organisation and in applicable laws and regulations, especially as concerns: i) whistleblowing (Law No. 179 of 2017 concerning the safeguarding of whistleblowers who report crimes or other irregularities of which they become aware in the course of their employment in the public or private sector); ii) privacy and data protection; and iii) non-financial reporting (Directive No. 95/2014/EU on the disclosure of non financial information, transposed in Italy with Italian Legislative Decree No. 254/2016).
Whistleblowing reports	The reports governed by the rules may be submitted by anyone, including Eni employees and third parties (i.e. external persons with some relationship with Eni such as business partners, customers, suppliers, the Eni audit firm, consultants, associates and, in general, all other stakeholders).
	The complaints may regard: (i) non-compliance with external laws and regulations or internal Eni regulations, of Eni's regulatory system, including allegations of fraud involving corporate assets or financial reporting, as well as events that could, in theory, give rise to administrative liability for the Company pursuant to Legislative Decree No. 231/2001 or similar legislation governing corporate liability, as well as instances of active or passive corruption or the violation of anti-corruption regulations; (ii) the violation of rules and principles set out in the Code of Ethics.
Appropriate checks	Eni carries out all appropriate checks of the facts reported, investigating the reports as quickly as possible while ensuring completeness and accuracy of the checks performed.
	The Internal Audit Department manages the process for the Eni Group.
Whistleblowing Team	Specifically, the investigative process requires that all whistleblowing reports be brought to the attention of the "Whistleblowing Team"201, which divides them into two categories on the basis of their content202 (reporting pertaining to the "Internal Control and Risk Management System" and "Other Issues") and checks the facts alleged and whether they can be verified. If verified, the Team asks the Internal Audit unit to conduct an assessment.
Whistleblowing Committee	Assessments involving whistleblowing reports are maintained in "report files", which can be judged "founded", "unfounded" or "unfounded with action". The proposed classification is submitted to: (i) in the case of reports on the "Internal Control and Risk Management System", to the Whistleblowing Team and the Whistleblowing Committee203. They may require further investigation or may approve their inclusion in the periodic report submitted to the Board of Statutory Auditors, in its capacity as the "Audit Committee" under US law. The latter may approve the files as classified or, if it deems it necessary, ask the Internal Audit Department to conduct further investigation; (ii) in the case of reports pertaining to "Other issues", they are submitted to the Eni Watch Structure, in its capacity as Guarantor of the Code of Ethics of Eni204. The latter may approve the files as classified or, if it deems it
	necessary, ask the Internal Audit Department to conduct further investigation.
	(201) The Team is an internal inter-departmental body, composed of the Managers of the following Departments: (i) Integrated Compliance; (ii) Legal Affairs; (iii) Internal Audit; (iv) Human Resources and Organization; and (v) Accounting and Financial Statements of Eni SpA. (202)The Internal Audit Department forwards notices received that are not identified as "whistleblowing reports" of relevance to the whistleblowing procedure to the relevant company units for processing under the provisions of applicable regulations. (203)The Committee is an internal inter-departmental body composed of the Heads of: i) Integrated Compliance; ii) Legal Affairs; iii) Internal Audit; and iv) Human Resources and Organization. The Head of the Accounting and Financial Statements is included in the Committee in case of reports with a potentially serious impact. (204) On November 23, 2017 Eni Board of Directors approved the new version of the Code of Ethics, which establishes that the Watch Structure of Eni SpA shall act as the Guarantor of the Code of Ethics for all Group companies. As a result, as from 2018, all Other Issues reports will be evaluated by the Watch Structure of Eni SpA in its capacity as the Guarantor of the Eni Code of Ethics.

The Internal Audit Department also reports on its investigations and provides periodic reporting to the Chairman of the Board of Directors, the CEO, the Board of Statutory Auditors, the audit firm, the members of the Whistleblowing Committee and Team, as well as to the Eni SpA Watch Structure and the heads of competent units, the top management and control bodies of the Eni subsidiaries for reports involving them, in line with the Eni regulations governing this area.

While examining the periodic reports received, the Eni Board of Statutory Auditors also assesses, including in its capacity as the "Audit Committee" under US law, whether to forward reported incidents that could have a more significant impact on the internal control and risk management system to the Control and Risk Committee.

Litigation Management Regulations

The "Litigation Management" regulations were last updated on November 18, 2013. They govern the process of the communication and internal dissemination of news concerning developments in significant litigation or administrative proceedings205 involving Eni SpA and/or its subsidiaries and requires that a team of Eni top managers ("TeamPEG"206), each in his area of expertise, oversee the coordination of the necessary actions – while observing the legal and operational autonomy of the subsidiaries and their control and supervisory bodies – including for the purposes of a proper exercise of management and coordination functions by Eni SpA, where applicable.

Subsidiaries also promptly notify the team of significant legal events and any whistleblowing reports, including anonymous reports, which, regardless of whether or not action has been brought by law enforcement authorities, relate to certain legal circumstances indicated in the procedure.

The measures governed by the regulation contribute to the effectiveness of the internal control and risk management system, in part to ensure consistency in the action of Eni SpA and its subsidiaries in response to significant legal events.

Management System Guideline "Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties"207

On April 4, 2017, the Board of Directors, having received a favourable and unanimous opinion of the Control and Risk Committee, approved a few changes in the Management System Guideline (MSG) "Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties", first adopted in implementation of Consob regulations on November 18, 2010208.

The changes are aimed at bringing the system further into line with the benchmarks and best practices in the field. More specifically, in addition to a number of formal modifications: (i) the materiality thresholds were revised, with greater detail depending on the type of transaction and the related party involved; (ii) cumulative low-value transactions with the same related party were disciplined; (iii) the scope of the semi-annual reporting was extended, with the reports also being transmitted in advance to the Control and Risk Committee.

(206)The Team is composed of the Senior Executive Vice President Legal Affairs, the Chief Services & Stakeholder Relations Officer, the Executive Vice President External Communication, the Senior Executive Vice President Corporate Affairs and Governance and the Senior Executive Vice President Internal Audit.

(208)The first version of the MSG of November 18, 2010 had repealed and replaced the previous company rules in this area, which had been approved on February 12, 2009.

The Board of Statutory Auditors/ Audit Committee SOA and the Control and Risk Committee

Purpose of regulations and TeamPEG

Eni's procedure

⁽²⁰⁵⁾ Specifically, notices, news and requests received by Eni SpA and/or its subsidiaries or that, in any case, it is made aware of concerning judicial or administrative proceedings, of particular significance to Eni, during the preliminary or trial stage or in the course of investigation or expressly indicated as possible by the authority that has the power to initiate it once the investigations in course have been completed.

⁽²⁰⁷⁾ The MSG "Transactions involving the interests of Directors and Statutory Auditors and transactions with related parties" is available in the Governance section of the Company's website.

Consob regulation and Eni's choices	At its meeting of January 17, 2019209, the Board of Directors, taking account of the information gathered on the issue and obtaining a favourable opinion from the Control and Risk Committee, judged as positive the adequacy of the design of the MSG.
	The MSG, while largely being based on the definitions and provisions of the Consob Regulation, extends the rules for transactions carried out directly by Eni to all transactions undertaken by subsidiaries with related parties of Eni SpA, with a view to enhancing safeguards and improving functionality.
	In addition, the definition of "related party" has been extended and defined in greater detail.
Types of transactions: transactions of greater importance, transactions of lesser importance, exempt transactions	Transactions with related parties are divided into transactions of lesser importance, of greater importance and exempt transactions, with procedural arrangements and transparency requirements that vary based on the type and importance of the transaction.
Independent Directors	In general, the independent Directors on the Control and Risk Committee or the Remuneration Committee – in the case of certain remuneration issues – play a central role in all significant transactions with related parties. Specifically, for transactions of lesser importance, the procedures require that the relevant committee express a reasoned, non-binding opinion on the Company's interest in completing the transaction and the economic benefits and substantive fairness of the underlying terms.
Exempt transactions	Exempt transactions comprise low-value transactions as well as ordinary transactions carried out under standard conditions, intercompany transactions and those regarding remuneration as specified in the MSG.
Multiple low-value transactions	In order to strengthen the anti-avoidance mechanisms of the rules, improving the system beyond the requirements set out in the Consob Regulation, the MSG governs multiple low-value transactions with the same related party, establishing that all transactions whose cumulative value, however small the value of the individual operations, exceeds the specified threshold shall be subject to the procedures established for transactions of lesser importance (regardless of whether they were carried out for a single purpose), without prejudice to the possible application of other exemptions provided for in the MSG210.
Transactions of greater importance	For transactions of greater importance, without prejudice to the decision-making powers reserved to the Board of Directors, the relevant committee is involved starting from the preparatory phase of the transaction and expresses a binding opinion on the Company's interest in the completion of the transaction and the economic benefits and substantive fairness of the underlying terms.
Disclosures to the public	With regard to the disclosures to be provided to the public, the relevant provisions of the Consob Regulation have been fully incorporated in the MSG.
Internal processes	The MSG also sets out the timing, responsibilities and verification tools to be used by Eni employees involved and the reporting requirements that must be complied with for the correct application of the rules.
Transactions subjects of interest of Directors and Statutory Auditors	Finally, consistent with the choice made with the previous system, specific rules have been adopted for transactions in which a Director or a Statutory Auditor holds an interest, whether directly or on behalf of third parties. More specifically, the MSG contains specific monitoring, evaluation and motivation requirements related to the preliminary phase and to the completion of a transaction with a party of interest to a Director or a Statutory Auditor.
	(209) At its meeting of January 19, 2012, the Board of Directors conducted the first annual review of the MSG, as required by the document itself, in advance of the three-year deadline set by Consob. The Board consequently modified the first version of the MSG procedure in a number of areas with a view to facilitate application of the procedures. The MSG and the subsequent amendments received the unanimous, favourable opinion of the former Internal Control Committee of Eni, composed entirely of independent Directors under the provisions of the Corporate Governance Code and in accordance with the Consob Regulation. At its meetings of January 17, 2013, January 16, 2014, January 20, 2015, January 19, 2016, March 17, 2017 and January 18, 2018 the Board of Directors, subject to obtaining a favourable opinion from the Control and Risk Committee, conducted an annual review of the MSG and, taking account of the information received, decided no amendments of the MSG were necessary, although during the abovementioned review of 2017 it did note the advisability of certain updates of the MSG and the associated annexes. These updates, described briefly above, were implemented with a resolution of the Board of Directors on April 4, 2017, after first obtaining a unanimous favourable opinion of the Control and Risk Committee. (210) The rules governing multiple low-value transactions will be applied as from the date the information systems for the monitoring are implemented.

In order to ensure prompt and effective verification of the implementation of the MSG, a database had been created listing related parties and Eni persons of interest, together with a search application that the agents of Eni and the subsidiaries responsible for preparing transactions can use to access the database in order to determine the nature of the transaction counterparty. As noted earlier, the database is currently being updated in order to permit controls of multiple low-value transactions and further improve monitoring and reporting of the transactions to the corporate bodies.

To ensure an effective system of control over transactions, every two months the CEO must report to the Board of Directors and to the Board of Statutory Auditors on the execution of individual transactions with related parties and parties of interest to Directors and Statutory Auditors, who are not exempt from the provisions of the MSG, and prepare a semi-annual aggregate report on all transactions with related parties and parties of interest (exempt and non-exempt) carried out during the reporting period. The MSG also establishes that the semi-annual reporting to the Board of Directors and Board of Statutory Auditors shall be transmitted in advance to the Control and Risk Committee as well.

The Board of Statutory Auditors monitors the compliance of Eni's procedures with the principles set out by Consob concerning related parties211, as well as whether their conformity based upon information received and reports to the Shareholders' Meetings on its activities.

Numerous training and information meetings have been held since 2015, coordinated by Corporate Affairs and Governance, involving all the departments of Eni and its unlisted subsidiaries most affected by the relevant legislation. These activities were accompanied by a session of ongoing training for the Board of Directors and the Board of Statutory Auditors, which reviewed the main aspects of the applicable regulations and the associated responsibilities of the corporate bodies and their members.

In 2018 training and awareness-raising activities for the business areas most affected continued, with additional training planned for 2019.

Management System Guideline Market Information Abuse (Issuers)

Managing of corporate information and inside information in particular

Eni recognises that information is a strategic corporate asset and as such must be managed so as to safeguard the interests of the Company. Moreover, the correct disclosure of information is the basis for the orderly functioning of financial markets and their development, contributes to company's reputation, and reinforces investor trust in the company.

On October 25, 2018, as proposed by the CEO and having heard the opinion of the Control and Risk Committee, the Board of Directors approved the MSG "Market Information Abuse (Issuers)" that, together with the related annexes, updates the previous internal regulation for aspects related mainly to issuers212, to new European and Italian legislation, and to the latest guidance of competent authorities213.

(213) Primary Italian legislation (the Consolidated Law on Financial Intermediation) has been adapted to European legislation (Market Abuse Regulation No. 596/2014/EU and related delegated acts) by way of Legislative Decree No. 107 of August 10, 2018, which came into effect on September 29, 2018. With regard to Italian regulations, on April 29, 2017 came into force the amendments to Consob Issuers and Markets Regulations – adopted with Consob Resolution No. 19925 of March 22, 2017 – in order to adapt them to the European Market Abuse Regulation. Furthermore, in October 2017 Consob issued its guidelines concerning the handling of inside information.

Periodic reporting

Monitoring role of the Board of Statutory Auditors

Training

Internal rules approved by the Board

⁽²¹¹⁾ The oversight function of the Board of Statutory Auditors is governed by Art. 2391-bis of the Italian Civil Code, Art. 4, paragraph 6 of the Consob regulation on related-party transactions, as well as the relevant internal regulations.

⁽²¹²⁾ The Market Information Abuse (Issuers) MSG does not include provisions related to market manipulation, to obligations of participants on the emission allowances market, and to financial instruments other than listed bonds and shares. It also does not include the provisions of Regulation (EU) No. 1227/2011 ("REMIT").

The MSG governs the proper management and external disclosure of corporate information, and of inside information in particular, and related principles of conduct and implements the specific obligations and prohibitions established by law in order to provide Eni and all Eni personnel with a clear, unified and comprehensive framework of applicable laws, regulations and other obligations safeguarding both the market and Eni. Therefore, the MSG is intended to make Eni personnel aware of the value of information and the consequences that may derive from poor management of that information. In particular, as described in greater detail below, the MSG and the associated annexes lay down principles of conduct for the internal management and external disclosure of corporate information in general and govern: (i) prohibitions on the insider dealing and the unlawful disclosure of inside information; (ii) the internal management and the external disclosure of Eni inside information; (iii) the rules of conduct concerning transactions in Eni financial instruments carried out by persons who perform administration, control or management functions with Eni Issuers (i.e. "Relevant Persons"), as well as persons closely associated with them (i.e. "Managers' Transactions" discipline, formerly known as "Internal Dealing"). The rules of conduct established by this MSG and the associated annexes have been adopted to ensure compliance with the legal, regulatory and self-disciplinary measures governing this field in order to protect shareholders, investors, the market, and Eni, including through the prevention of unlawful conducts that could give rise to liability. In order to facilitate the application of the rules concerning the identification of Eni inside information, a mapping of the Eni Relevant Information is provided, along with supporting examples. The new rules further strengthen measures for preserving the confidentiality of corporate information in general, as required by Criterion 1.C.1 letter j) of the Corporate Governance Code and of inside information in particular, ensuring that information is used by employees and members of the corporate bodies in accordance with the principles of sound management of information within the context of the duties assigned to them in the pursuit of the company business and in compliance with the principles set out in Eni's Code of Ethics and with corporate security measures. Directors and Statutory Auditors shall ensure the confidentiality of documents and information acquired in the performance of their duties and shall ensure compliance with the MSG. Internal management and external disclosure inside information The provisions of the MSG provide a detailed description of the process of internal management and external disclosure of Eni inside information, which had been implemented in July 2016 when the MAR came into effect while awaiting completion of the legislative framework and related interpretations and the consequent adaptation of the new MSG. In particular, the MSG confirms, supplements and reinforces the roles and responsibilities of the functions involved in the process, which has been structured so as to allow for the rapid analysis of information and decisions regarding public disclosures, including any use of procedures for the delay of public disclosure. More generally, in accordance with Consob recommendations, the MSG governs monitoring of the shift from "potentially inside information" for Eni ("Eni Specific Relevant Information" in Consob terms) to "inside information" after a mapping of the "Types of Eni Relevant Information", while identifying related mechanisms to ensure segregation and confidentiality (i.e. the "Relevant Information List" and "Insider List of persons with access to Eni Inside Information"). During the year, the competent company functions also continued working on awareness and training – within Eni SpA and the subsidiaries – with regard to market abuse and with a particular emphasis on the accountability of all Eni personnel concerning conduct to ensure the confidentiality of corporate Purposes of the regulation The process of internal management and external disclosure of inside information Monitoring of the shift from "potentially inside information" for Eni to "inside information" Training

information, and of inside information in particular, and concerning prohibitions (against the insider

dealing and unlawful disclosure) and related sanctions.

Insider List of persons with access to inside information

In line with the provisions of applicable legislation, the MSG governs the rules for maintaining and updating the Insider List of persons with access to Eni inside information (the "Insider List").

Specifically, in accordance with legislative recommendations, the Insider List has been prepared in digital form, and the information systems used allow for the tracking of those who have access to inside information.

In line with the interpretations of European and Italian supervisory authorities, Eni has also opted to include a "permanent" section, in line with Consob recommendations, that lists the Eni persons regularly involved in the assessment of inside information. In this regard, the MSG expressly states that those who are listed in this permanent section are required to take special precautions, given the nature of the information in their possession.

Market disclosure of documents and inside information

As specifically concerns disclosure to the public of inside information as soon as possible, the MSG confirms that such public disclosure is to take place by way of price-sensitive press releases.

The MSG states that inside information disclosed by way of price-sensitive press releases: (i) is to be disclosed using procedures that allow for rapid access and thorough, accurate and timely evaluation and that ensure non-discriminatory access to the information using the mechanisms of dissemination and storage specified by applicable laws and regulations; this dissemination must be done without discrimination, free of charge, and simultaneously to the broadest possible audience; (ii) must not be accompanied by marketing of the company's business; and (iii) is to be stored on the Eni website for a period of no less than five years.

As such, the MSG confirms the rules that Eni has always followed for the public disclosure of inside information (i.e. transparency, fairness, materiality, clarity, completeness, traceability, homogeneity of information, equal access to information, symmetry of information, consistency, and timeliness). It also maintains the rules for acquiring news and information from the subsidiaries as necessary in order to provide adequate and timely reporting to the Board of Directors and to the market regarding events and circumstances that could result in inside information.

Managers' Transactions (formerly Internal Dealing)

The MSG governs disclosure obligations concerning transactions in Eni financial instruments by persons who perform administration, control or management functions for Eni SpA ("Relevant Persons") and by persons closely associated with them (i.e. the provisions concerning "Managers' Transactions", formerly known as "Internal Dealing") and the prohibition for Relevant Persons to execute transactions during certain periods of the year (i.e. "Blocking Period").

Eni SpA Relevant Persons are the Directors, Statutory Auditors, the Magistrate at the Italian Court of Auditors, Executives who report directly to the CEO and to the Chairman, and members of the Management Committee. The MSG specifies the obligations for the disclosure of transactions allowed by law and conducted by Relevant Persons and persons closely associated with them, as well as Eni's obligations of public disclosure.

Disclosures related to transactions that fall within the scope of application of the provisions for Managers' Transactions are also published on the Eni SpA website in the section of the same name.

In line with applicable laws and regulations, the MSG governs "Blocking Period" during which Relevant Persons are prohibited from executing transactions in Eni financial instruments, either on their own behalf or for others, either directly or indirectly, for 30 calendar days prior to the announcement of preliminary, interim or annual financial report.

In addition to the requirements of applicable law, Eni has extended application of the "Blocking Period" to 30 days prior to the publication of quarterly reports.

Insider List

The price-sensitive press releases

Eni SpA Relevant Persons

Blocking period

of subsidiaries

Relevant Persons are constantly reminded of the calendar of Blocking Period.

These rules were voluntarily extended by Eni to certain other parties for the significant activities performed in connection with the preparation of financial reports and strategic plans in those periods.

Audit firm214

The statutory auditing of Eni's financial statements is entrusted, pursuant to law, to EY SpA (already Ernst & Young SpA), whose engagement for the financial years 2010-2018215 was approved by the Shareholders' Meeting held on April 29, 2010, acting on a reasoned proposal of the Board of Statutory Auditors. On May 10, 2018, the Shareholders' Meeting, acting on a reasoned proposal by the Board of Statutory Auditors, awarded the statutory auditing engagement for the financial years 2019-2027 to PricewaterhouseCoopers SpA ("PwC"), whose offer received the highest technical score and offered the most attractive financial terms216. Engagement and terms of office

In addition to the obligations set forth in national audit regulations, Eni's listing on the New York Stock Exchange requires that the audit firm issues a report on the Annual Report on Form 20-F, in compliance with the auditing principles generally accepted in the United States, as well as an assessment of the effectiveness of the internal control system applied to financial reporting, which governs the preparation of the consolidated financial statements. US regulations

For the most part, the financial statements of the subsidiaries are audited by Eni's audit firm. In addition, for the purpose of issuing an assessment on the consolidated financial statements, Eni's audit firm assumes responsibility for the auditing activities performed by other audit firms regarding the financial statements of subsidiaries that, taken together, account for an immaterial share of consolidated assets and revenues. Audit of financial statements

In carrying out its work, the audit firm has access to the information, data (both documentation and digital information), archives and property of the Company and its subsidiaries.

General principles are set pertaining to the granting and revocation of the engagement, relations between the primary auditor of the Group and secondary auditors, the independence of the audit firm and causes for incompatibility, reporting responsibilities and obligations of the audit firm, and the regulation of the flow of information to the Company and the SEC.

In order to preserve the independence of the audit firms, a monitoring system for "non-audit" work has been created where, in general, the audit firm and its network are not awarded engagements unrelated to the performance of statutory audit activities, except in rare circumstances pertaining to activities that are not prohibited by Italian legislation or the Sarbanes-Oxley Act.

Control of the Court of Auditors

The financial management of Eni is subject to the control of the Court of Auditors ("Corte dei Conti")217 in order to preserve the integrity of the public finances. This work has been performed by the Magistrate of the Court of Auditors Adolfo Teobaldo De Girolamo, on the basis of the resolution

(214) The audit firm expresses its opinion on this Report pursuant to Art. 123-bis, paragraph 4, of the Consolidated Law on Financial Intermediation.

(215) With the Shareholders' Meeting called to approve 2018 financial statements, the audit engagement for the 2010-2018 period will expire.

(216) In order to ensure that the transition from the current audit firm to its successor is conducted in a manner appropriate to the size and complexity of the Eni Group, the Board of Statutory Auditors, acting as the Internal Control and Financial Auditing Committee, has agreed a proposal from the competent corporate units to move forward the selection procedure for the award of the external audit engagement for the 2019-2027 period and, following the assessment process, at its meeting of February 15, 2018, voted to recommend that the Eni Shareholders' Meeting pursuant to Art. 16 of Regulation (EU) No. 537/2014, award the engagement for 2019-2027 to either PwC or KPMG, informing the Shareholders' Meeting called for May 10, 2018 of its reasoned preference for the offer submitted by PwC. (217) Pursuant to Art. 12 of Law No. 259 of March 21, 1958.

approved on December 22, 2014 by the President's Council of the Court of Auditors until February 28, 2019. As from March 1, 2019 the work is performed by the Magistrate of the Court of Auditors Manuela Arrigucci, on the basis of the resolution approved on December 18-19, 2018 by the President's Council of the Court of Auditors. The Magistrate of the Court of Auditors attends the meetings of the Board of Directors, the Board of Statutory Auditors and the Control and Risk Committee.

Relations with shareholders and the market

In compliance with its Code of Ethics and the adopted Corporate Governance Code, Eni has maintained an open and on-going dialogue with institutional investors, retail shareholders and the market, so as to ensure the dissemination of complete, accurate and timely information on its activities, without prejudice to the need to preserve the confidentiality that certain information may require.

Disclosures concerning periodic reports, the four-year strategic plan, major events and transactions are disseminated through press releases, meetings and conference calls with institutional investors, financial analysts and the press, and are promptly made available to the general public, including by way of publication on the Company's website.

In particular, presentations by top management to the financial markets concerning the quarterly and annual results and the four-year strategic plan are transmitted live on the Company's website, informing retail shareholders, enabling them to participate in the most significant market events in real time.

Recordings of these events, press releases and the associated presentations and transcripts are permanently available on the Company's website.

In response to the need to extend the dialogue with investors beyond the traditional strategic presentation in London on 2018-2021 (March 16, 2018), continuing the initiatives begun in 2017218, the Chief Executive Officer discussed Eni's strategy also in New York (April 10) and Milan (April 18).

The "Eni on the Stock Markets" pages in the "Investors" section of Eni's website www.eni.com are constantly updated with information on dividends, share price and the major stock market indexes. The website also contains, among other things, documents relating to the Shareholders' Meeting, including the minutes of meetings and to the corporate governance system of Eni. The Shareholders' Meeting documentation is provided free of charge to anyone who may request it, including through the Company's website.

A section of the website is dedicated to Eni's Corporate Governance, and the governance model is illustrated with a summary graphic as well as with additional detailed pages.

The website also provides easy access to a considerable amount of other documentation, including this Report, previous reports and the documents referred to in the reports.

In 2018, with a score of 93.2 Eni came first in the Webranking Europe 500 and Italy rankings, dedicated to digital corporate communication, compiled by Comprend in collaboration with Lundquist, which respectively assess the quality of online corporate communication of the European companies included in the FT Europe 500 index and of Italian companies, standing out for the transparency and completeness of their information. In particular, the presentation of the business strategy linked to sustainability and digitization initiatives was considered very effective. The Governance section also contributed to achieving this important result.

Furthermore, the Eni website ranked second in the "Explain yourself Index", a world ranking drawn up by the British company Bowen Craggs, with a score of 64.

Relations with shareholders and the market

Once again in 2018, Eni was confirmed in the FTSE4Good Developed index for the twelveth year in a row and was given an A- score in the in the evaluation CDP2018219.

A section on the Company's website is dedicated to shareholders. This section includes a Shareholder's Guide and a simple and short interactive video of the Shareholders' Meeting approving the financial statements.

Responding to the need to keep its ongoing dialogue with the market on ESG matters, also in 2018 Eni organised a "Corporate Governance Roadshow" led by the Chairman of the Board with some leading institutional investors220 and participated in the second annual meeting with SRI investors organised by the Milan Stock Exchange (Milan, July 2018). In recent years, Eni also intensified dialogue with proxy advisors and investors on its remuneration policy.

Specific Eni units handle relations with institutional investors, shareholders and the media

Specific Eni units handle relations with institutional investors, shareholders and the media. As provided for in the Corporate Governance Code, relations with institutional investors and financial analysts are managed by the Head of the Investor Relations function; the relevant information is available on the Eni website in the "Investors" section and may also be requested by e-mail at investor.relations@eni.com.

Relations with other shareholders are managed by the Corporate Secretariat. The relevant information is available on the Eni website in "Governance" section and may also be requested by e-mail at segreteriasocietaria.azionisti@eni.com, or by calling the toll-free number 800940924 (from abroad: 80011223456).

Relations with the media are managed by the Head of the External Communication Department; the relevant information is available on the Eni website in the "Media" section and may also be requested by e-mail at ufficio.stampa@eni.com.

The following tables show the structure and meetings of the Board of Directors, the Committees and the Board of Statutory Auditors

Board of Directors and Board Committees (in charge since April 13, 2017)

	Board of Directors						Control and Risk Committee		Remuneration Committee**		Nomination Committee		Sustainability and Scenarios Committee
Members*	Year of first appointment Slate1		Executive /	Non-Executive Independence2	No. of other positions held3	Meetings attendance Position4		Meetings attendance Position4		Meetings attendance Position4		Meetings attendance Position4		Meetings attendance
Chairman
Emma Marcegaglia	2014	M	Non-Executive	CLFI	1	12/12	-		-		-		-
Chief Executive Officer
Claudio Descalzi	2014	M	Executive	-	-	12/12	-		-		-		-
Directors
Andrea Gemma	2014	M	Non-Executive	CLFI-CGC	1	12/12	M	16/16	C	8/8	M	10/10	-
Pietro Guindani	2014	m	Non-Executive	CLFI-CGC	-	12/12	-		M	8/8	-		C	12/12
Karina Litvack	2014	m	Non-Executive	CLFI-CGC	-	12/12	M	16/16	-		-		M	12/12
Alessandro Lorenzi	2011	m	Non-Executive	CLFI-CGC	1	12/12	C	16/16	M	8/8	-		-
Diva Moriani	2014	M	Non-Executive	CLFI-CGC	3	11/12	M	15/16	M	8/8	C	10/10	-
Fabrizio Pagani	2014	M	Non-Executive	-	1	12/12	-		-		M	8/10	M	10/12
Domenico Livio Trombone	2017	M	Non-Executive	CLFI-CGC	5	12/12	-		-		M	9/10	M	12/12
No. of meetings in 2018						12		16		8		10		12
Average length of meetings						3h 58m		3h 13m		2h 30m		1h 20m		2h 52m
Average attendance rate						99.1 %		98.4%		100%		92.5%		96%

(*) Appointed by the Shareholders' Meeting of April 13, 2017 for a three-year term, ending on the date of the Shareholders' Meeting called to approve the 2019 financial statements.

(**) Compensation Committee until March 15, 2018.

(1) For definitions of "majority" (M) and "minority" (m) slates, please refer to the sections "Composition" and "Appointment" in the chapter "Board of Directors" of this Report. The minimum holding required to submit a slate for the election of the Board of Directors was equal (in 2017) to 0.5% of the share capital.

(2) Satisfies the independence requirements under the Consolidated Law on Financial Intermediation (legislative decree No. 58/1998 o CLFI) and/or the Corporate Governance Code (CGC). (3) Positions as director and statutory auditor held in other companies listed in regulated markets, including foreign regulated markets, as well as financial, banking and insurance firms and large companies for the purposes of the Board policy on the maximum number of positions that may be held in other companies of April 13, 2017. The major positions held by the Directors are reported in the section "Composition" of the chapter "Board of Directors" of this Report, in the context of the information on the personal and professional qualifications of the Directors, as well as on the Eni website (www.eni.com).

(4) "C": Committee Chairman; "M": Committee member.

Board of Statutory Auditors (in charge since April 13, 2017)

Members *	Year of first appointment	Independence persuant to Corporate Governance Code	Slate1	Attendance at BoSa meetings	Attendance at BoD meetings	No. of positions held in listed companies2
Chairman
Rosalba Casiraghi	2017	X	Minority	25/25	12/12	2
Standing Statutory Auditors
Enrico Maria Bignami	2017	X	Minority	25/25	12/12	3
Paola Camagni	2014	X	Majority	25/25	12/12	1
Andrea Parolini	2017	X	Majority	24/25	12/12	1
Marco Seracini	2014	X	Majority	25/25	12/12	1
No. of meetings in 2018				25	12
Average lenght of meetings				3h 34m	3h 58m
Average attendance rate				99%	100%

(*) Appointed by the Shareholders' Meeting on April 13, 2017 for a three-year term ending on the date of the Shareholders' Meeting called to approve the 2019 financial statements. On April 13, 2017, the Shareholders' Meeting appointed the alternate Statutory Auditors Stefania Bettoni and Claudia Mezzabotta.

(1) For definitions of "Minority" and "Majority" slates, please refer to the section on the "Composition and appointment" of the Board of Statutory Auditors in this Report. The minimum holding required to submit a slate for the election of the Statutory Auditors was equal (in 2017) to 0.5% of share capital.

(2) The list is current as of the date of approval of this Report. The main positions held by Statutory Auditors are listed in the section "Composition and appointment" of the chapter "Board of Statutory Auditors" in this Report, in the context of the information on the personal and professional qualifications of the standing Statutory Auditors, as well as in the Governance section of the Eni website (www.eni.com); the complete list of significant management and control positions held pursuant to Art. 148-bis of the Consolidated Law on Financial Intermediation and the related implementing provisions set out in the Consob Issuers' Regulations is published on Consob website, pursuant to Art. 144-quinquiesdecies of the Issuers' Regulations, where applicable.

Eni SpA

Headquarters

Piazzale Enrico Mattei, 1 - Rome - Italy Capital Stock as of December 31, 2018: € 4,005,358,876.00 fully paid Tax identification number 00484960588

Branches

Via Emilia, 1 - San Donato Milanese (Milan) - Italy Piazza Ezio Vanoni, 1 - San Donato Milanese (Milan) - Italy

Publications

Financial Statement pursuant to rule 154-ter paragraph 1 of Legislative Decree No. 58/1998 Annual Report Annual Report on Form 20-F for the Securities and Exchange Commission Fact Book (in Italian and English) Interim Consolidated Report as of June 30 pursuant to rule 154-ter paragraph 2 of Legislative Decree No. 58/1998 Corporate Governance Report pursuant to rule 123-bis of Legislative Decree No. 58/1998 (in Italian and English) Remuneration Report pursuant to rule 123-ter of Legislative Decree No. 58/1998 (in Italian and English)

Eni in 2018 – Summary Annual Review (in English) Eni For 2018 – Sustainability Report (in Italian and English)

Internet home page www.eni.com

Rome office telephone

+39-0659821

Toll-free number 800940924

e-mail segreteriasocietaria.azionisti@eni.com

Investor Relations

Piazza Ezio Vanoni, 1 - 20097 San Donato Milanese (Milan) Tel. +39-0252051651 - Fax +39-0252031929 e-mail: investor.relations@eni.com

Layout and supervision

K-Change - Rome

Printing Tipografia Facciotti – Rome - Italy