Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Safety
• Community Engagement
• Governance
• Human Rights
• Biodiversity

Environmental Achievements

• Avoided the emission of about 100 million tons of CO2 into the air in 2009.
• Reduced injury rate by 56% and seriousness rate by 48% in the last five years (2005-2009).
• Maritza East 3 power plant operating in full compliance with EU environmental standards.
• Significant energy savings and efficiency improvements in power generation and distribution lines.

Social Achievements

• Involved more than 440,000 students worldwide in the “Play Energy” educational project.
• 100,000 people visited 64 Enel plants in Italy with “Open Plants”.
• 6,000 children participated in a sports tournament in Chile.
• Launched an internal communication campaign on the new Code of Ethics.
• Instituted an alternative procedure for settling disputes with Italian consumer associations.

Governance Achievements

• Reviewed and extended the new Code of Ethics to the entire Group.
• Initiated initiatives on monitoring and prevention regarding supplier health and safety.
• Implemented online conciliation for all electricity and gas customers.
• Centralized risk management expertise in the new “Group Risk Management” Department.

Climate Goals & Targets

Environmental Challenges

• Market liberalization and regulatory changes.
• CO2 emissions.
• Commodity prices and supply continuity.
• Credit and liquidity risk.
• Rating risk.
• Exchange- and interest-rate risk.
• Litigation related to environmental regulations, electromagnetic fields, and supply interruptions.
• Debt accumulated because of acquisitions.

Mitigation Strategies

• Strategies to minimize impacts of climate change, including monitoring emission levels, adjusting portfolio to compliance instruments, investing in CDM projects, increasing efficiency, diversifying production mix, and developing low-emission technologies.
• Careful management of operating cash flow and initiatives to leverage assets to reduce debt.
• Strengthening capital structure and continually improving cash flow.
• Implementing a comprehensive risk management system.
• Cooperating extensively with investigations and taking judicial and out-of-court actions to resolve legal issues.

Supply Chain Management

Responsible Procurement

• Compliance with regulations requiring publication, non-discrimination, transparency, and cost-effectiveness in contract awards.
• Formalized controls on joint liability with contractors regarding employee obligations.

Climate-Related Risks & Opportunities

Physical Risks

• Reduced precipitation affecting hydroelectric production.
• Increased temperature interfering with thermal plant cooling systems.

Transition Risks

• Regulatory risks regarding generating plants that do not meet greenhouse-gas emission standards.

Opportunities

• Growth of green economy, competitiveness from renewable energy and innovation.

Reporting Standards

Frameworks Used: GRI, AA1000APS

Certifications: ISO 14001

Third-party Assurance: KPMG (limited external audit)

Sustainable Products & Innovation

• Smart meters
• Smart grids
• Renewable energy technologies
• CCS technology
• Electric mobility systems

Awards & Recognition

• Ruban d’Honneur (European Business Awards)
• Report Oscar
• Sodalitas Social Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Smart Grids
• Electric Mobility
• Social Development
• Community Engagement
• Employee Well-being
• Diversity & Inclusion
• Corporate Governance
• Anti-corruption
• Supply Chain Sustainability
• Human Rights

Environmental Achievements

• Increased share of generation from renewable sources to about 45%
• Inaugurated Europe's largest CO2 capture pilot plant in Brindisi
• Inaugurated the world's first hydrogen-fired industrial plant in Fusina
• Inaugurated the world's first thermodynamic solar plant using molten-salt technology in Priolo Gargallo
• Reduced specific CO2 emissions by 5.7%
• Reduced fuel consumption by 2.7%
• Reduced internal water withdrawal by 5.5%

Social Achievements

• Launched 'Meters and More' initiative promoting smart meters
• Extended employee performance review system to Italian white-collar workers
• Implemented 'Enel Home' project to develop added-value services for customers
• Launched E-Mobility Italy project for electric vehicle recharging infrastructure
• Participated in the rescue of trapped miners in Chile
• Implemented 'Green Ports' project to apply sustainable technologies to ports
• Developed 'Smartcity Malaga' project integrating sustainable technologies in a city
• Implemented conciliation procedure for resolving customer disputes, extended to SMEs
• Received numerous sustainability awards

Governance Achievements

• Achieved A+ level of compliance with GRI-G3 guidelines
• Included in Dow Jones Sustainability Indexes for the seventh consecutive year
• Became part of the UN Global Compact LEAD program
• Implemented Zero Tolerance of Corruption Plan
• Updated Code of Ethics
• Implemented Compliance Program pursuant to Legislative Decree 231/2001

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on energy production and distribution
• Regulatory risks related to greenhouse gas emissions
• Physical risks to plants from climate events
• Need to reduce CO2 emissions from conventional energy sources
• High costs and low efficiency of some renewable energy technologies
• Balancing the need for energy reduction with energy availability
• Managing the integration of Endesa
• Maintaining a strong safety culture

Mitigation Strategies

• Investing in zero-emission sources (renewable and nuclear energy)
• Investing in technologies for reducing emissions from conventional sources (high-efficiency coal, CCS)
• Improving energy efficiency in plants and distribution
• Implementing projects and best practices in Eastern Europe and less developed countries using Kyoto Protocol mechanisms
• Investing in research and development of innovative technologies
• Effective management of emissions rights through Carbon Unit
• Implementing the Integrated Nine-Point Safety Improvement Plan
• Implementing diversity management initiatives
• Strengthening financial profile through bond issues and asset sales

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Safety training for contractors

Climate-Related Risks & Opportunities

Physical Risks

• Reduced precipitation affecting hydro plants
• Increased temperature affecting thermal plant cooling systems

Transition Risks

• Regulatory changes regarding greenhouse gas emissions
• Market shifts towards renewable energy

Opportunities

• Growth in renewable energy sector
• Development of CCS technologies
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI-G3, EUSS, AA1000APS

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• All-included Green Energy
• Tarifa Eléctrica Verde

Awards & Recognition

• Ruban d’Honneur - European Business Awards
• Ethics and Enterprise Award – Ravello Festival
• European Utility Awards
• Social Sensitivity Award to Enel Cuore Onlus
• Top Employer
• Igualdad en la empresa award (Endesa)
• Chico Mendes Award (Endesa)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Occupational Health and Safety
• Corporate Governance
• Human Rights
• Community Relations
• Customer Relations
• Supply Chain Sustainability

Environmental Achievements

• Reduced CO2 emissions by 34% compared to 1990.
• Increased renewable energy share in production mix to 28.2%.
• Inaugurated a pilot plant for CO2 capture in Brindisi, Italy.
• Installed 36 million electronic meters in Italy and 1 million in Spain.

Social Achievements

• Reduced accident rate by 14.5%.
• Reduced accident rate at contracting companies by 15.7%.
• Provided almost 1.1 million hours of training in 2011.
• Launched the "Enabling Electricity" program to improve energy access.
• Held the second Enel Sustainability Day.

Governance Achievements

• Implemented the "One Company" project to streamline operations.
• Maintained A+ rating in application of GRI guidelines.
• Included in Dow Jones Sustainability Indexes and FTSE4Good index.

Climate Goals & Targets

Environmental Challenges

• Lack of rainfall caused a significant reduction in hydroelectric production.
• Economic and financial uncertainty.
• Opposition to some hydroelectric projects in Latin America.
• Negative media coverage regarding share price and debt reduction.
• Regulatory challenges related to CO2 emissions.

Mitigation Strategies

• Investment in renewable energy sources.
• Implementation of synergies between Enel and Endesa.
• Debt reduction plan.
• Improved plant efficiency.
• Monitoring and management of environmental risks.
• Engagement with stakeholders.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct.
• Environmental and social criteria in supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Reduced rainfall affecting hydroelectric production.
• Increased temperatures affecting thermal plant cooling systems.

Transition Risks

• Regulatory changes related to GHG emissions.
• Instability of the emissions trading market.

Opportunities

• Development of renewable energy sources.
• Development of energy-efficient technologies.

Reporting Standards

Frameworks Used: GRI G3.1, AA1000APS

Certifications: ISO 14001

Third-party Assurance: CRF Institute

Sustainable Products & Innovation

• Electronic meters
• Smart grids
• Renewable energy technologies
• Electric vehicles

Awards & Recognition

• Top Employer
• Randstad Globe award
• CRC Oro prize
• Prize for environmentally-friendly innovation
• Child Guardian Award
• National Business award for the Environment

Environmental Metrics

ESG Focus Areas

• Sound governance
• Development of renewable energies
• Mitigation of air emissions
• Fair corporate conduct and transparency
• Energy Efficiency & Smart Grids
• Access to electricity
• Respect for human rights
• Responsible relations with communities
• Occupational health and safety
• People development
• Responsible supply-chain management

Environmental Achievements

• Reduced specific CO2 emissions by 7% compared to 2007
• Over 42% of total energy production from zero-emission energy in 2012
• Saved 96.9 million tons of CO2 through renewable and nuclear energy production

Social Achievements

• Launched One Safety project to improve safety
• Launched Bettercoal initiative to improve coal sector responsibility
• Expanded Enabling Electricity program, benefiting over one million people
• Enel was the leading company in Italy for the quality of phone services offered to customers

Governance Achievements

• Established four committees within the Enel Board of Directors, consisting solely or mainly of independent directors
• Increased the presence of women on the Boards of subsidiaries
• Adopted the UN Guiding Principles on Business and Human Rights
• Approved the Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic scenario marked by a climate of economic and financial uncertainty
• General fall in consumption in Europe
• Problems in terms of local acceptance relating to projects at El Quimbo (Colombia) and HidroAysén (Chile)
• Opposition to the Porto Empedocle regasification project
• Protests against Enel’s coal-fuelled power stations

Mitigation Strategies

• Geographic diversification, balanced technological mix, and cost attention
• Selective and flexible investment decisions
• Transparent Corporate Social Responsibility policy
• Proactive dialogue and consultation with local stakeholders
• Public meetings and information campaigns
• Agreements with local communities

Supply Chain Management

Supplier Audits: 71% of purchases from commercially qualified suppliers in 2012.

Responsible Procurement

• Supplier qualification system assessing legal, economic, financial, technical, and organizational reliability
• Adherence to Code of Ethics, Zero Tolerance of Corruption Plan, and 231 Compliance Program
• Assessment of health and safety, environmental management, and other sustainability aspects

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Low rainfall affecting hydroelectric production
• Rise in temperature affecting cooling systems

Transition Risks

• Regulatory changes on CO2 emissions
• Instability of the emissions trading market

Opportunities

• Development of energy-efficient products and services
• Growth in renewables

Reporting Standards

Frameworks Used: GRI G3.1, AA1000APS

Certifications: ISO 14001:2004

Third-party Assurance: Reconta Ernst & Young SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

Enel's initiatives contribute to these goals through renewable energy development, energy efficiency improvements, and emissions reduction efforts.

Sustainable Products & Innovation

• Smart meters
• Smart grids
• Renewable energy technologies
• Energy efficiency solutions

Awards & Recognition

• Top Utility Communication Award 2012
• Cannes Lions 2012
• 2012 San Bernardino prize
• Immagini Amiche award
• Assorel 2012

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Smart Grids
• Community Relations
• Employee Well-being
• Governance
• Supply Chain Sustainability
• Biodiversity

Environmental Achievements

• Reduced specific CO2 emissions by over 36% compared to 1990.
• Increased renewable energy production by 4%.

Social Achievements

• Launched ENabling Electricity program, impacting over 2.5 million people.
• Implemented various community development projects in multiple countries.
• Improved customer satisfaction index.

Governance Achievements

• Implemented a new matrix-based organizational structure.
• Joined UN Global Compact Lead Board Programme.
• Improved transparency and ethical conduct.

Climate Goals & Targets

Environmental Challenges

• Complex macroeconomic context and lack of growth in mature markets.
• Energy theft and grid losses in some regions.
• Climate change risks (extreme weather events).
• Social and environmental concerns related to specific projects (e.g., El Quimbo).

Mitigation Strategies

• Structural reorganization of the Group.
• Active asset portfolio management.
• Investments in renewables and digitalization.
• Proactive dialogue and engagement with stakeholders.
• Implementation of mitigation measures for specific projects.

Supply Chain Management

Responsible Procurement

• Supplier qualification system.
• Sustainability criteria in procurement processes.
• Contractual clauses on human rights, environmental responsibility, and ethics.
• Vendor rating system.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting electricity generation, distribution, and supply.

Transition Risks

• Imposition of carbon tax.

Opportunities

• Growth in renewable energy.

Reporting Standards

Frameworks Used: GRI G3.1, AA1000APS

Certifications: ISO 14001

Third-party Assurance: Reconta Ernst & Young SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Enel's initiatives in renewable energy, energy efficiency, and climate change mitigation contribute to these goals.

Sustainable Products & Innovation

• Smart meters
• LED lighting
• Energy efficient appliances
• Renewable energy technologies

Awards & Recognition

• Gold Class award in RobecoSAM Sustainability Yearbook 2015.
• Presence in Dow Jones Sustainability Index.
• Presence in FTSE4Good index.

Environmental Metrics

ESG Focus Areas

• Sound governance and fair corporate conduct
• Creation of economic and financial value
• Energy efficiency
• Climate strategy
• Mitigation of environmental impacts
• Open Innovability
• Quality for customers
• Efficient use of water resources
• Biodiversity and natural capital protection
• Employee management, development and motivation
• Valorization of employee diversities
• Responsible relationships with communities
• Access to electricity
• Responsible supply chain management
• Occupational health and safety

Environmental Achievements

• Reduced specific water consumption by 6.3% compared to 2014
• Reduced particulates by 30% compared to 2014
• Increased CO2 emissions reduction target to 2020 from 18% to 25% compared to 2007 values
• Group Biodiversity Policy published

Social Achievements

• Diversity and Inclusion Policy published
• Undertook projects aimed at inclusive, sustainable and long-lasting economic growth and the promotion of employment for a total of 428 thousand beneficiaries
• Undertook projects aimed at guaranteeing high quality, inclusive and fair education for a total of 84 thousand beneficiaries
• Reduced injury rates in all areas, both for employees and for contractors

Governance Achievements

• Reviewed the process of managing notifications related to the Code of Ethics to guarantee greater transparency and traceability

Climate Goals & Targets

Environmental Challenges

• Slightly increased specific CO2 emissions due to reduced hydroelectric production caused by reduced water availability
• SO2 emissions increased by 10.5% owing to the temporary closure of some units under maintenance
• Some disputes over service quality in Italy

Mitigation Strategies

• Increased CO2 emissions reduction target to 25% by 2020
• Developed alternative sourcing strategies
• Improved management of customer complaints

Supply Chain Management

Responsible Procurement

• Code of Ethics
• Zero Tolerance of Corruption Plan
• Policy on Human Rights
• Sustainability criteria in tender contracts
• Vendor Rating system

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting power distribution and plant operation

Transition Risks

• Regulatory instability related to climate change policies

Opportunities

• Investments in renewables
• Development of energy efficiency products and services

Reporting Standards

Frameworks Used: GRI G4 Core, EUSS (Electric Utility Sector Supplement)

Certifications: ISO 14001

Third-party Assurance: Reconta Ernst & Young SpA (limited assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

Enel's initiatives contribute to these goals through access to energy, education programs, job creation, and climate change mitigation.

Sustainable Products & Innovation

• Smart meters
• Energy storage systems
• Electric vehicles
• LED lighting

Awards & Recognition

• Silver Class award for sustainability in RobecoSAM's Sustainability Yearbook 2016
• Gold Stevie Award for Corporate Social Responsibility Program of the Year in Europe
• Silver Stevie Award for Energy company of the year
• Atos Prize for digital progress

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Approximately half of the electricity the ENEL Group produced in 2015 was free of carbon dioxide emissions.
• Commitment to becoming a decarbonised company by 2050.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant indebtedness (€41,594 million net financial debt as of 30 June 2018)
• Restrictive covenants in credit and bond agreements limiting operations
• Exposure to floating interest rates (35% of gross financial debt as of 30 June 2018)
• Credit ratings near the low end of investment grade, susceptible to downgrades
• Uncertainty in executing the 2019-2021 Strategic Plan
• Risks related to acquisitions (past and future)
• Political, social, or economic instability in operating countries
• Exchange rate risks, particularly Euro/USD and South American currencies
• Adverse financial and macroeconomic conditions within the Eurozone
• Impact of UK's withdrawal from the European Union
• Changes in macroeconomic, geopolitical, and market conditions
• Changes in creditworthiness of counterparties
• Liquidity risks
• Potential write-downs of goodwill and intangible assets
• Litigation and regulatory proceedings
• Environmental and resident opposition to projects
• Complex and changing regulatory regimes in operating countries
• Risks related to permits, concessions, and authorizations
• Vulnerability to slowdowns in power demand
• Increased competition in liberalizing energy markets
• Significant costs associated with environmental laws and regulations
• Legislation and regulation concerning CO2 emissions
• Risks related to time-limited government concessions
• Risks related to service interruptions at facilities
• Potential liabilities from nuclear power plants
• Fluctuations in fuel, commodity, and electricity prices, and supply disruptions
• Tax uncertainties
• Variability of weather and seasonality, and climate change
• Exposure to extreme weather events and natural disasters
• Disruptions in information technology and cyberattacks

Mitigation Strategies

• Risk management policies for debt repayments, interest rate fluctuations, and exchange rate risks
• Hedging activities using derivative instruments
• Strategic Plan to improve operational efficiency and accelerate growth
• Qualitative and quantitative risk assessment processes for country risks
• Financial risk management policies to stabilize exchange rate effects
• Internal monitoring systems and internal control model to prevent crimes
• Insurance coverage for various risks
• Diversification of generation mix towards low-carbon technologies
• Strategies to acquire CO2 allowances at competitive prices
• Initiatives to monitor, assess, and quantify the impacts of climate change
• Sophisticated monitoring and mitigation measures for extreme weather events
• Cyber Security Framework to manage cyber security activities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart meters

Awards & Recognition

• Yankee Bond Award 2017

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Decarbonization

Environmental Achievements

• Approximately half of the electricity the ENEL Group produced in 2015 was free of carbon dioxide emissions.
• New target for 2030 consisting in the reduction of 70% of CO2 emissions per kWh versus 2017 reaching an emissions value of 125 g/kWh. This target has also been certified by the SBTi according to the well below 2 degrees pathway.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks related to the variability of weather and seasonality and extreme weather events
• Risks connected with climate change (physical variable and transition scenario changes)
• Risks relating to interruptions in service at its facilities
• Risks relating to the process of energy market liberalisation
• The UK’s decision to withdraw from the EU
• Significant indebtedness
• Risks related to the potential liabilities resulting from energy production through nuclear power plants
• Restrictive covenants in credit and bond agreements
• Fluctuations of fuel, other commodities and electricity prices, and disruptions in their supply
• Severe slowdown in power demand
• Adverse financial and macroeconomic conditions within the Eurozone
• Political, social or economic instability in some of the countries where the Group operates
• Changes in macro-economic, geopolitical and market conditions
• Litigation and regulatory proceedings
• Significant costs associated with environmental laws and regulation
• Tax uncertainties

Mitigation Strategies

• Adopting sophisticated monitoring and mitigation measures consistent with internationally recognized Environmental Management Systems (EMS)
• Diversifying its generation mix towards the use of low-carbon technologies and resources with a focus on renewables and nuclear power
• Developing strategies to acquire allowances at competitive prices and enhances the environmental performances of its generation plants, increasing their energy efficiency
• Increasing its presence and client base in free (non-regulated) areas of the energy markets
• Focusing on technological progress and research of business innovation
• Maintaining a level of liquidity which is adequate to meet its payment commitments
• Pursuing a strategy aimed at diversifying its funding sources and optimising the maturity of its debt
• Developing operational processes that ensure the appropriate coverage of exposures through hedging strategies
• Applying criteria for measuring credit exposures to promptly identify any deterioration in credit quality
• Entering into insurance contracts with leading credit insurance companies
• Adopting risk management policies that provide for the hedging of interest rate risk exposure
• Testing goodwill and other intangible assets for impairment annually
• Adopting risk management policies providing principles for the hedging of price risk
• Regularly carrying out a qualitative assessment process of the risks associated with each country where the ENEL Group operates
• Developing a quantitative model using shadow rating approach to support capital allocation and investments evaluation processes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather conditions impacting energy demand
• Low wind or rain levels affecting renewable energy production
• Extreme weather events or natural disasters causing damage to assets

Transition Risks

• Introduction of laws and regulations for getting through the transition and the Paris Agreement
• Increase in the level of competition
• Regulatory changes with a view to integrating new digital and renewable technologies

Opportunities

• Sustained demand growth in the medium to long term
• Progressive decarbonisation of human activities

Reporting Standards

Frameworks Used: Null

Certifications: Science Based Target initiative (SBTi)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Around €14 billion will be devoted to SDG 7, around €12 billion are linked with SDG 9, around €1 billion will be invested in SDG 11, and 95% of the overall investments will contribute to SDG 13.

Sustainable Products & Innovation

• Smart meters

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Renewable energy
• Digitalization
• Electric mobility
• Energy efficiency
• Circular economy
• Community relations
• Human capital development
• Diversity and inclusion
• Governance
• Occupational health and safety
• Sustainable supply chain
• Ethical conduct
• Human rights

Environmental Achievements

• Reduced specific CO2 emissions to 0.356 kgCO2/kWheq (down from 0.369 kgCO2/kWheq in 2017)
• Increased renewable energy capacity by 3.1 GW
• Reduced thermal capacity by 0.2 GW
• 51% of Group’s generation was zero-emission

Social Achievements

• Supported projects ensuring inclusive and equitable quality education for 1 million beneficiaries
• Provided access to affordable, reliable, sustainable and modern energy for 6.3 million beneficiaries
• Promoted sustained, inclusive and sustainable economic growth with projects involving 1.8 million beneficiaries
• Implemented a change management and digital skills dissemination program
• Reduced total injuries frequency rate by 14% compared to 2017

Governance Achievements

• Completed the process to adopt the Enel Global Compliance Program in Argentina, Mexico, Peru and Spain
• Achieved ISO 37001 anti-corruption certification for main Italian companies and extension to the Group foreign companies
• Implemented a Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Climate change physical risks (extreme weather events, natural disasters)
• Climate change transitional risks (regulatory changes, market shifts)
• Water crises risks
• Environmental compliance risks
• Risks related to human capital (demand for new professional profiles and skills)
• Cyber-attack risks

Mitigation Strategies

• Diversified portfolio of activities and generation technologies
• Prevention and protection strategies
• Weather monitoring and forecasting
• Increased asset resilience
• ISO 14001 certification
• Environmental management systems
• Continuous improvement of environmental impact
• Growth through low-carbon technologies and services
• Relations with authorities and regulatory bodies
• Meteorological analyses
• Shared water resources management strategy
• Improved water use efficiency
• ISO 14001 certified environmental management system
• Biodiversity protection measures
• Environmental impact assessments
• Human capital management as a pillar of the 2019-2021 Strategic Plan
• Development of digital abilities and skills
• Performance appraisal systems
• Diversity and inclusion policy
• Agile working
• Cyber Security Framework
• CERT (Cyber Emergency Readiness Team)

Supply Chain Management

Responsible Procurement

• Circular economy approach
• Partnerships with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Changes in temperature, rainfall, wind, and solar radiation

Transition Risks

• Regulatory changes
• Market shifts
• Changes in energy prices
• Increased stakeholder focus on climate

Opportunities

• Development of renewable energy resources
• Energy efficiency improvements
• Electric mobility
• Energy storage
• New business models

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 37001

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Enel's initiatives contribute to these goals through various projects and programs related to education, energy access, economic growth, infrastructure, sustainable cities, responsible consumption, climate action, peace, justice, and partnerships.

Sustainable Products & Innovation

• JuiceLamp
• Energy efficiency solutions for apartment buildings
• Demand response systems
• Electric vehicle charging solutions

Awards & Recognition

• Real Innovation Awards - People Choice 2018
• Ethical Boardroom Corporate Governance Awards
• Diversity Awards 2018
• Fortune Change the World list

Environmental Metrics

ESG Focus Areas

• Net-Zero Ambition
• Electrification
• People
• Nature
• Growth accelerators
• Backbones

Environmental Achievements

• Reduced specific SO2 emissions by -89% compared to 2017
• Reduced specific NOx emissions by -56% compared to 2017
• Reduced specific particulate matter emissions by -98% compared to 2017
• Reduced specific water requirement by -52% compared to 2017
• Reduced waste products by -87% compared to 2017
• Reduced single-use plastics at Enel Group sites in Italy by -75% by 2021 (compared to 2018)

Social Achievements

• Launched a social inclusion boosting program for Enel X Pay and Homix (Italy)
• Implemented accessible e-billing in Chile
• Provided accessible informative videos of Credito Facil Codensa
• Used sign language in videos in service centers and introduced the Pedius app in Peru
• Increased the percentage of women in managerial succession plans

Governance Achievements

• Secured ISO 37001 anti-bribery management system certification for main Italian companies and extended it to foreign companies
• Adopted the Enel SpA engagement policy
• Carried out a board review with the support of an independent consultant

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Challenges in achieving Net-Zero by 2040

Mitigation Strategies

• Implementation of specific resettlement programs supported by upskilling and reskilling activities
• Accelerating the process of decarbonization of generation activities
• Gradually replacing the thermoelectric portfolio with new renewable capacity

Supply Chain Management

Supplier Audits: 100% of qualified suppliers assessed for health and safety, environmental, and human rights aspects in 2021

Responsible Procurement

• Gradual conversion of sustainability factors in tenders from reward factors to mandatory requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 37001

UN Sustainable Development Goals

• SDG 13
• SDG 7
• SDG 9
• SDG 11

Enel's strategy contributes to achieving all 17 UN Sustainable Development Goals, with a particular focus on SDG 13 (Climate Action), SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), and SDG 11 (Sustainable Cities and Communities).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Decarbonization
• Electrification
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Generated 227.8 TWh of electricity with 49.4% renewable net generation in 2022.
• Installed 3.5 GW of additional renewable power in 2022.
• Reduced thermal capacity by 6.0 GW in 2022.

Social Achievements

• Launched several initiatives through Enel X, including Smart Home, Enel X Way (e-mobility), and energy-saving products.
• Implemented a Supplier Qualification System assessing sustainability management.

Governance Achievements

• Board-level oversight of climate-related issues.
• Incentives for management linked to climate transition plan KPIs (emissions intensity reduction).

Climate Goals & Targets

Environmental Challenges

• Chronic physical risks: Temperature variability impacting electricity demand.
• Chronic physical risks: Changes in renewable resource availability.
• Market risks: Uncertainty in market signals impacting renewable energy growth.
• Acute physical risks: Extreme weather events damaging assets and interrupting operations.

Mitigation Strategies

• Developing a climate transition plan aligned with a 1.5°C world.
• Implementing a multi-disciplinary company-wide risk management process.
• Diversifying energy mix and geographical operations.
• Investing in renewable energy capacity (21 GW by 2025).
• Implementing mitigation measures for acute physical risks (insurance, operational actions).

Supply Chain Management

Supplier Audits: 99% of qualified suppliers assessed in 2022.

Responsible Procurement

• Supplier Qualification System
• Sustainability Ks in tendering processes

Climate-Related Risks & Opportunities

Physical Risks

• Temperature variability
• Changes in renewable resource availability
• Extreme weather events

Transition Risks

• Uncertainty in market signals

Opportunities

• Increased electricity demand for cooling.
• Higher renewable production due to changing weather patterns.
• Development and expansion of low-emission goods and services.

Reporting Standards

Frameworks Used: TCFD, GHG Protocol, SBTi, EU Taxonomy

Third-party Assurance: Third-party assurance provider (Audit Firm)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

Approximately 94% of 2023-2025 capex aligned with SDGs.

Sustainable Products & Innovation

• 100% renewable energy contract
• Enel X products and services

Environmental Metrics

ESG Focus Areas

• Tax Sustainability
• Financial Sustainability
• Environmental Sustainability
• Climate Change

Environmental Achievements

• 81% of tax incentives related to energy transition investments in renewable energy.

Social Achievements

• Not disclosed

Governance Achievements

• Board-approved tax strategy; accurate Tax Risk Management and Control System (Tax Control Framework – TCF); transparent tax reporting to stakeholders; adherence to Cooperative Compliance Schemes; independent verification of reports by an auditing firm.

Climate Goals & Targets

Environmental Challenges

• Decreased amount of projects benefiting from accelerated depreciation in the US; reduction of incentivized plants coming into operation in 2023 compared to 2022; significant reduction in Group’s revenues, mainly in Spain and Italy; lower quantities of energy produced and sold; decreasing average sales prices; some companies exiting the Group’s scope; severe economic crisis in Argentina with 128% inflation.

Mitigation Strategies

• Participation in cooperative compliance schemes in Italy, Spain, France, Portugal, and Brazil; implementation of a Tax Control Framework (TCF) to minimize tax risks; adoption of a centralized finance model for subsidiaries; achievement of ruling agreements with local tax authorities (Advance Pricing Agreements – APAs); ongoing monitoring of cooperative compliance regimes; elimination of structures created solely for tax burden reduction in low-tax jurisdictions; responsible use of tax incentives aligned with business objectives and economic substance of investments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standard 207, World Economic Forum metrics, B Team’s Responsible Tax Principles

Certifications: AENOR certification for Endesa’s Tax Compliance Management System (UNE 19602 standard)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Safety
• Responsible Water Management

Environmental Achievements

• Intensity of Scope 1 GHG emissions in relation to power generation decreased by 41.0% compared with the 1st Half of 2023.
• Intensity of Scope 1 and Scope 3 GHG emissions in relation to Integrated Power decreased by 30.4% on the 1st Half of 2023.
• Absolute Scope 3 GHG emissions in relation to retail gas sales decreased by 17.1% on the 1st Half of 2023.
• Total water withdrawals decreased by 28.5% compared with the 1st Half of 2023.
• Specific withdrawals of fresh water decreased by 10.5% compared with the same period of 2023.

Social Achievements

• Launched a Task Force on well-being issues and expanded the Global Well-being Program.
• Launched the Well-being Network project to train People Business Partners in supporting employee well-being.
• Renewed commitment to DEIB (Diversity, Equity, Inclusion & Belonging) with focus on gender equality and support for employees with disabilities.
• Implemented a Succession Plan process with attention to the valorization of women.

Governance Achievements

• Redesigned People Development Strategy to leverage employee value through dedicated caring and development paths.
• Developed a global cultural transformation program to promote entrepreneurship.
• Revised the performance evaluation model with a focus on results and new values (trust, proactivity, innovation, respect and flexibility).

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability, including the war in Ukraine and the situation in the Middle East, causing supply chain disruptions and increased energy prices.
• Uncertainty over gas supplies in Europe.
• Climate change and the energy transition impacting Group activities.
• Health and safety risks associated with operational activities and non-compliance with regulations.
• Compliance risks, particularly in Brazil, Italy, Spain, and the United States.

Mitigation Strategies

• Development of a decarbonization roadmap aligned with the Paris Agreement and SBTi targets.
• Implementation of a margin stabilization strategy, including early contractualization of supplies and geographical diversification.
• Development of short-, medium-, and long-term scenarios to support strategic and industrial planning.
• Adoption of a Health and Safety Management System compliant with ISO 45001.
• Intensifying relationships with local governance and regulatory bodies.
• Implementation of a risk governance model based on lines of defense, a Group Risk Committee, local risk committees, a Risk Appetite Framework, risk policies, reporting, and a risk catalogue.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SBTi

Certifications: ISO 37001, UNI ISO 45001

Third-party Assurance: KPMG SpA

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Enel's initiatives contribute to Goal 13 through decarbonization efforts and renewable energy investments.