In order to identify the Group’s priorities for action, the issues on which further disclosure is required and the activities to involve stakeholders which needs enhancing, Enel has for several years now been conducting a materiality analysis, based on the guidelines of the most widespread international standards, such as the Global Reporting Initiative (GRI), the principles of the Communication on Progress (COP) of the UN Global Compact, the framework of the IIRC (International Integrated Reporting Council) and the SDG Compass, a guide which supports companies in aligning their strategies with the United Nations Sustainable Development Goals.
The objective is to map and evaluate the priority of the issues of interest to stakeholders, by cross-referencing them with the industrial strategy and with the Group’s priority actions.
This methodology is the basis for identifying the issues around which to plan sustainability initiatives and structure their reporting.
The identification of issues is based on the analysis of internal and external sources and takes into consideration the various geographical situations, the developments in the sector and corporate processes1. The issues have been classified into business and governance issues (white), social issues (fuchsia) and environmental management issues (green) and have been assessed on the basis of their relevance by both stakeholders and by the Company.
The reading of the matrix of priorities in regard to each axis leads to consideration of:
- on the horizontal axis, the priority which stakeholders, duly calibrated on the basis of their importance, attribute to the various issues. In the right-hand part of the matrix are, therefore, the issues on which stakeholders request more commitment from the Group in terms of investments, enhancement of existing management practices and systems, formalization of clear commitments and policies;
- on the vertical axis, the issues on which Enel plans to focus its efforts, with the related degree of priority, also in consideration of the investments envisaged, the commitments entered into and the issues included in the Group Strategic Plan. In the high part of the matrix we can therefore find the issues on which a serious commitment is envisaged for coming years, as part of the Group’s strategic objectives.
The combination of the two perspectives enables the most important issues both for the Company and for stakeholders to be identified (so-called material issues), and consequently the level of alignment or misalignment between external expectations and internal relevance to be verified.