Sustainability-Linked Bonds

Eni: a review of its SLBs

Written by Emiel Loh & Josephine Richardson

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Eni, the Italian energy multinational, has four Sustainability-Linked Bonds (SLBs) outstanding with targets linked to installed renewable capacity and net upstream scope 1 and 2 emissions.

All the bonds have target observation dates at the end of this year leading to a potentially very material cumulative non-discounted step-up of €48.75mn dependent on the company’s 2025 reporting.

Our latest analysis suggests the company is likely to achieve both its targets.

It has sufficient renewables development projects in the pipeline to achieve 5GW by year end, and so meet its first target.

Recent reporting shows that Eni retired 5.9 Mt CO₂e of carbon credits in 2024 to hit its emissions reduction target for that year, and could deploy the same tactic again to meet the target this year without substantially cutting its climate pollution in other ways. The increased materiality of the step-up coupons increases motivation for this.

We additionally highlight the opportunity for Eni to enhance the ambition of future SLBs by linking them to the two other Key Performance Indicators (KPIs) in its Sustainability-Linked Financing Framework with long-dated targets, that have thus far gone unused.

About the authors

Emiel Loh

Emiel Loh

Emiel was formerly a Research Analyst at AFII.

Josephine Richardson

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

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