Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Social Inclusion
• Community Engagement
• Governance
• Occupational Health and Safety
• Sustainable Supply Chain

Environmental Achievements

• Increased renewable energy share in generation portfolio to 73% by 2023 (from 56% in 2020) through merger with EGP Américas.
• Avoided ~6.9 million tCO2eq in direct CO2 emissions from electricity production (Scope 1).

Social Achievements

• Launched various applications and strengthened digital channels to improve customer relations.
• Implemented teleworking for over 74% of the workforce during the COVID-19 pandemic.
• Supported healthcare systems and provided basic necessities to local communities in response to COVID-19.
• Provided easy payment options and flexible billing arrangements for vulnerable customers.
• Implemented various initiatives to promote gender equality and diversity and inclusion.

Governance Achievements

• Merger with EGP Américas approved, consolidating renewable energy generation business.
• Ranked among the top ten companies in Latin America for corporate governance (GovernArt and VigeoEiris).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting employees, customers, investors, suppliers, and communities.
• Economic crisis worsening inequalities in Latin America.
• Drop in energy demand due to lower consumption and difficulty in collecting distribution payments.
• Social conflicts potentially jeopardizing operational continuity.

Mitigation Strategies

• Prioritized health and safety of workers and implemented teleworking.
• Strengthened health and food supplies for local communities.
• Supported vulnerable customers and guaranteed continuity of contracts with suppliers.
• Implemented digital systems to manage plants safely.
• Developed alternative sourcing strategies.
• Implemented a strategy of continuous dialogue and community engagement.

Supply Chain Management

Responsible Procurement

• Incorporation of sustainability factors into tender processes.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Temperature increases

Transition Risks

• Regulatory changes
• Market shifts
• Technological changes

Opportunities

• Growth in renewable energy generation
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 13

Company's business strategy contributes to these SDGs through various initiatives.

Sustainable Products & Innovation

• Smart charging systems
• Smart home ecosystem
• Residential solar products
• Energy efficiency solutions

Awards & Recognition

• Sustainability Yearbook 2021 (Bronze Class)
• S&P Dow Jones Index (DJSI) inclusion
• FTSE4Good inclusion
• Vigeo-Eiris ranking
• MSCI ESG rating AA
• Sustainalytics low-risk ranking
• Corporate Knights Carbon Clean 200™ Ranking

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Electrification
• Grid Modernization
• Customer Centrality
• Employee Well-being
• Diversity & Inclusion
• Sustainable Supply Chain
• Governance
• Human Rights

Environmental Achievements

• Increased renewable generation capacity by 4.7 GW, totaling 10.9 GW (almost 70% of total capacity)
• Reduced direct CO2 emissions intensity by 149 gCO2/KWheq
• Achieved 67% renewable energy generated
• Avoided 22.2 million tCO2eq through various initiatives

Social Achievements

• Launched employee well-being programs, including mental health support and flexible work arrangements
• Implemented diversity and inclusion initiatives, aiming for 50% women in selection processes and 29% female managers
• Community investment initiatives focusing on access to clean energy and economic development
• Implemented various programs to improve customer experience and satisfaction

Governance Achievements

• Solid corporate governance structure with transparency and ethical conduct
• Adherence to international standards and national regulations
• Implementation of a Global Compliance Model and Criminal Risk Prevention Model

Climate Goals & Targets

Environmental Challenges

• Water scarcity due to prolonged drought in some regions
• Supply chain disruptions
• Social conflicts
• Cybersecurity risks
• Data privacy concerns

Mitigation Strategies

• Implemented efficient water management protocols
• Developed alternative sourcing strategies
• Continuous dialogue with stakeholders and community engagement
• Strengthened cybersecurity measures
• Defined a Personal Data Protection Officer (DPO) for each country

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• ESG factors incorporated into bidding processes

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Water scarcity

Transition Risks

• Changes in energy prices
• Policy and regulatory changes
• Technological changes

Opportunities

• Growth of renewable energy
• Electrification of consumption
• Development of new energy services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 13

Enel Américas integrates these SDGs into its business plan, focusing on education, clean energy, economic growth, innovation, sustainable cities, and climate action.

Sustainable Products & Innovation

• Smart meters
• Electric vehicle charging infrastructure
• Energy efficiency solutions
• Digital grid management platforms

Awards & Recognition

• Dow Jones Sustainability Index inclusion
• Sustainability Yearbook 2022 Bronze Class
• FTSE4Good inclusion
• Moody's ESG Solutions Best Emerging Markets Performers
• Sustainalytics low-risk rating
• CDP B rating

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Electrification
• People
• Nature
• Growth Drivers (Innovation, Digitization, Circular Economy)
• ESG Fundamentals (Governance, Human Rights, Health & Safety)

Environmental Achievements

• Developed 545 MW of new renewable capacity.
• Began construction on the second phase expansion of Enel Green Power Brazil's Lagoa dos Ventos wind farm (largest in South America).
• Began construction on the Enel Green Power Colombia Guayepo I & II solar farm (set to become the largest photovoltaic project in Colombia).
• 71% renewable generation capacity.
• 85% EBITDA from low-carbon products, services, and technologies.
• Reduced Scope 1 emissions by 10% compared to 2021.
• Recycled 720 tons of material in Colombia.

Social Achievements

• Launched global Wellbeing program for employee psychological, physical, and social wellbeing.
• Conducted annual work climate and commitment survey (Open Listening) with 72% participation.
• Implemented a hybrid work model.
• Improved Net Promoter Score (NPS) by 17 points in Brazil.
• Provided free access to vital energy (24-hour service) with batteries in Colombia.
• Provided Braille power bills in Brazil and Colombia for visually impaired customers.
• Implemented the About People methodology in Colombia and Central America to enhance talent development and retention.

Governance Achievements

• Board of Directors approves strategic, industrial, and financial plans, including ESG aspects.
• Board of Directors Committee oversees key sustainability issues.
• ESG is integrated into key corporate decision-making processes.
• Achieved high ratings from Dow Jones Sustainability Index, FTSE4Good, CDP, MSCI ESG Indexes, and Moody’s ESG Solutions.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks).
• Social conflicts.
• Ineffective stakeholder engagement.
• Health and safety risks.
• Risks related to diversity and inclusion and talent attraction and retention.
• Governance risks (illegal acts, corruption, etc.).
• Digitization, business continuity, and cybersecurity risks.
• Rising electricity prices leading to vulnerable customers and fuel poverty.
• Bureaucracy and required authorizations delaying energy transition.
• Commodity price volatility.
• Slowdowns and disruptions in the supply chain.

Mitigation Strategies

• Effective preventive and mitigation measures of environmental impacts and risks.
• Continuous dialogue at the territorial level.
• Materiality analysis, dialogue-based engagement strategy, and shared value creation.
• Culture of prevention and safety, policies, and training.
• Diversity and talent management and promotion policies.
• Internal Control and Risk Management System.
• Annual due diligence process.
• Digital transformation of value chain management system.
• Progressive decarbonization and commercial focus on renewables, grids, and customers.
• Energy transition-oriented strategy focused on electrification and renewables.
• Solid strategic positioning in new businesses.

Supply Chain Management

Responsible Procurement

• Incorporation of ESG requirements in bidding processes.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in resource availability

Transition Risks

• CO2 pricing and emissions policies
• Changes in commodity prices
• Changes in market design and permitting procedures
• Changes in competitive structure

Opportunities

• Growth in renewables
• Electrification of consumption
• Development of energy-efficient products and services
• New technologies for grid resilience

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: WELL Platinum (Brazil)

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)

Investments in renewable energy, grid modernization, electrification of consumption, and climate action initiatives.

Sustainable Products & Innovation

• Smart meters
• Electric vehicle charging stations
• Energy efficiency solutions (eHome, eIndustries, eCity, eMobility)
• Smart grid technologies

Awards & Recognition

• Sustainability Yearbook 2023 (Top 5%)
• CDP A- rating
• Various awards in Argentina, Brazil, Colombia, and Peru (see report for details)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Governance
• Human Rights
• Sustainable Supply Chain

Environmental Achievements

• Reduced Scope 1 emissions by 25% to 4.89 million tCO2eq compared to 2022.
• Added 1.8 GW of new renewable capacity, bringing renewable energy share to 90.4% of total installed capacity (14.6 GW).

Social Achievements

• Launched the largest fleet of public transport electric buses in São Paulo (nearly 50 vehicles).
• Presented the first public charger network for electric vehicles in Colombia (15 charging stations in Bogotá).

Governance Achievements

• Completed the sale of several generating plants and concessions in Argentina, Brazil, and Colombia as part of corporate simplification.
• Maintained high ESG ratings and index inclusions (DJSI, FTSE4Good, MSCI, CDP, etc.).

Climate Goals & Targets

Environmental Challenges

• High interest rates expected to persist in the medium term.
• Risk of climate change adding volatility to markets and requiring resilient grids.
• Supply chain disruptions due to climate events and geopolitical factors.

Mitigation Strategies

• Focus on corporate simplification and strategic investments in Brazil and Colombia.
• Investments in grid modernization and digitalization to improve service quality and resilience.
• Selective approach to renewable energy investments to maximize returns and reduce risks.
• Implementation of efficiency actions to reduce OPEX by US$100 million over three years.

Supply Chain Management

Supplier Audits: 100% of qualified suppliers evaluated under sustainability criteria (2023)

Responsible Procurement

• Code of Ethics
• Enel Global Compliance Program
• Zero Tolerance with Corruption Plan
• Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heat waves, floods, windstorms, fires)
• Changes in resource availability (water, wind, solar radiation)

Transition Risks

• Policy and regulatory changes
• Market dynamics (commodity prices, energy mix, competition)
• Technological changes

Opportunities

• Growth in renewable energy
• Electrification of consumption
• Development of new technologies and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 37001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

Business model focused on just energy transition, contributing to affordable and clean energy, resilient infrastructure, sustainable cities, and climate action.

Sustainable Products & Innovation

• Electric mobility solutions
• Smart meters
• Energy storage
• Energy-efficient lighting

Awards & Recognition

• S&P Global Sustainability Yearbook 2024 (Top 10%)
• MSCI AAA rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Natural capital
• Employees, Suppliers, Communities and Customers
• Corporate Governance

Environmental Achievements

• Reduced total absolute emissions (MtCO2eq) by -38% vs 2017 (2023 data)
• Avoided emissions increased by +89.6% vs 2017 (2023 data)
• Coal phase-out by 2027
• Achieved 99.6% emission-free production by 2027
• Waste sent for recovery increased to 81% in 2023

Social Achievements

• More than 33,000 ha of protected areas in Colombia
• More than 700,000 trees planted in Colombia
• More than 30,000 beneficiaries from biodiversity initiatives in Colombia
• Over 2,750 female students involved in STEM career guidance initiatives (in the last 3 years)
• Training hours per capita increased by +19% in 2023

Governance Achievements

• CEO’s short-term variable remuneration linked to ESG targets (Safety, Net Income, EBITDA, FCF)
• Board of Directors composition with 50% independent directors, 33% women, and diverse nationalities
• Implementation of various policies including Human Rights Policy, Code of Ethics, Zero Tolerance of Corruption Plan, and Global Compliance Programs

Climate Goals & Targets

Environmental Challenges

• Managing acute and chronic physical climate risks (heat, floods, icing, wildfires, etc.)
• Transition risks related to regulatory changes and market shifts
• Supply chain disruptions

Mitigation Strategies

• Adaptation activities varying by technology and assets’ features (e.g., resilience response, incident management, infrastructure robustness improvements)
• Prioritizing phenomena and scenario analysis, linking scenarios to business operations
• Impact assessments to quantify effects at operational, economic, and financial levels
• Implementing operational and strategic actions informed by impact assessments (e.g., capital allocation, business activities)
• Advocating for climate actions aligned with the Paris Agreement
• Sustainable supply chain management with mandatory sustainability requirements and supplier audits

Supply Chain Management

Supplier Audits: 100% of qualified suppliers assessed for health and safety, environmental, and human rights/business ethics aspects (2023)

Responsible Procurement

• Mandatory sustainable requirements
• Sustainability KPIs (incentive factors)
• Compliance with Enel’s Human Rights Policy, Code of Ethics, Zero Tolerance of Corruption Plan, and Global Compliance Programs

Climate-Related Risks & Opportunities

Physical Risks

• Heat
• Floods
• Icing
• Hail storms
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: TNFD, SBTN, GRI, UN Global Compact

UN Sustainable Development Goals

• 4
• 7
• 13

Enel Américas’ sustainable strategy directly targets 4 SDGs while contributing to all the others. The ambition of zero emissions lies at the heart of the strategy.

Awards & Recognition

• 1st place in the Firjan (RJ) Sustainability Award in 2024 (Grids + EGP)
• 2nd place in the GRI Award in 2023 (Grids + EGP)