- On the occasion of the World Economic Forum in Davos, Enel presented the ‘Economic CirculAbility©â’ KPI, which measures the Group’s circularity by comparing the economic performance (generated EBITDA, in euros) with the total resources consumed (fuels and raw materials, in tons), setting itself the target of doubling this value by 2030 compared to 2020 levels
Rome, January 19th, 2023 – Enel presented ‘Economic CirculAbility©â’ at the World Economic Forum held in Davos: it is a new key performance indicator (KPI) to measure the Group’s circularity by comparing its economic performance with its overall resource consumption. Enel has also pledged to double this index by 2030 compared to 2020 levels. By doing this, Enel becomes the world’s first company to adopt this kind of circularity index, and to set such an ambitious target.
“We decided to measure our circularity and to double it by 2030, as we believe it is an integral part of our industrial and competitive strategy, and of our sustainability too. In fact, we strive to become a leader in the energy transition,” said Ernesto Ciorra, Chief Innovability© Officer at Enel. “In order to achieve this sustainably, we need to make an effort not to consume raw materials, but rather to use them and then make them available again for future production cycles. This will ensure that, in the future, we and the countries in which we operate will have freedom in terms of supplies and will be independent of geopolitical developments. We need to do this now, since raw materials are available today, but global demand is increasing exponentially and so are efforts to decarbonize energy generation and industrial production in general. We are the first to commit to this and are proud to do so, since those at the forefront will gain a competitive advantage from circularity, while those who come last will risk dealing with increasingly scarce material availability.”
‘Economic CirculAbility©â’ takes into consideration the Group’s overall EBITDA (in euros) and compares it with the amount of resources, including fuels and raw materials, consumed throughout the value chain by its various business activities (expressed in tons). Enel has pledged to double its performance with regard to this KPI by 2030 as compared with 2020, which means consuming half the amount of resources in relation to generated EBITDA.
The new KPI and the 2030 target were announced in Davos during a panel organized as part of the ‘Corporate Circular Target-Setting’ initiative, implemented by the ‘Platform for Accelerating Circular Economy’ (PACE), a global platform for public-private collaboration that was set up during the World Economic Forum to accelerate the transition towards a circular economy model, involving roughly 100 companies, public entities and associations.
Measuring circularity has been key to implementing Enel’s circular strategy since 2015, when the Group began to realize that the circular economy could be a strategic driver. Specifically, Enel has always been a pioneering company when it comes to identifying and adopting quantitative KPIs throughout the Group, which clearly reflect the transition towards circularity in terms of separating its business activities from its resource consumption.
Enel’s pledge to double its circularity by 2030 is in line with its efforts to develop metrics that support its strategy of transitioning to a circular business model, along with initiatives such as ‘Circular Procurement’ with suppliers and the circularity metrics developed by Enel X for clients.
The document ‘A Journey into Enel’s Circular Economy’ provides a comprehensive overview of Enel’s efforts towards a circular economy.