Materiality analysis

The analysis of priorities (“materiality analysis”) makes it possible to identify and assess material issues for stakeholders, weighted on the basis of their relevance, correlating them with the Group’s priorities and with the business strategy, considering impacts generated and suffered, in order to check their “alignment” (or “misalignment”) and identify areas of possible improvement. The result of this analysis is shown in the priorities matrix (or materiality matrix) and it supports the identification and definition of issues for preparation of the Sustainability Report and the objectives to include in the Strategic Plan and in the Sustainability Plan, the accomplishment of which is guaranteed by contributions from the various Group Functions and Business Lines. The materiality analysis is brought to the attention of the Corporate Governance and Sustainability Committee at the time of the Sustainability Plan guidelines review. Moreover, the Corporate Governance and Sustainability Committee and the Control and Risks Committee issue preventive opinions concerning the Sustainability Report, which includes the materiality analysis, and submit them to the Board of Directors in its meeting convened to approve the Report. The process allows to identify not only the priorities for the entire Group, but also for single countries, down to the level of detail of Business Line/Business Function and individual assets (meaning potential or actual operating sites).

The methodology employed was developed taking into account the guidelines of several international standards, including the Global Reporting Initiative (GRI), SASB (Sustainability Accounting Standards Board), standard AA1000APS, and the SDG Compass, which supports companies in adapting their strategies to comply with the UN Sustainable Development Goals (SDGs). Specifically, the issues subject to analysis cover all seventeen SDGs. The issues, classified in categories of business and governance issues, social issues, and environmental issues, were assessed in 2019 based on the priorities assigned by stakeholders (horizontal axis of the matrix) and by the Company (vertical axis of the matrix). The overall Group matrix considers the contributions of the main companies involved in the process, based on their relevance with respect to the type of business in which they operate. Some of the main material issues are shown below, highlighting their related motivations and main impacts.


Occupational health and safety


Enel considers people’s health, safety, and psychological and physical well-being one of the main priorities of the Group. Optimal management of this issue contributes to generate trust and boost the commitment of people in relation to the Group and the work they perform, which also helps improve performance, raise productivity, and reduce labor cost. In confirmation of the constant commitment assumed by Enel in relation to safety, the total combined injury Frequency Rate (FR) in 2019 for Enel people and contractors was down by 18% compared to 2018.


Ecosystems and platforms

Digitalization and the spread of new technologies are accelerating the transformation of a large number of sectors. This context offers new opportunities based on the development of energy solutions that promote sustainability and make it possible to diversity the range of products and services the Group offers to its customers, influencing the traditional business model as well as promoting the creation of new ones. Innovation of products, services, or processes is a strategic priority that guarantees the Company’s long-term success against the background of an increasingly competitive and demanding market. In this context, the Group has included clear and precise objectives in its 2020-2022 Sustainability Plan, aimed at defining and developing new products and services, promoting the application of new technologies in the sphere of energy efficiency, electric mobility, storage, and other sustainable energy solutions.


Sound governance and fair corporate conduct

Enel has established a system of rules, models, and control mechanisms inspired by the highest standards of transparency and fairness in business management, both internally and externally. This model generates trust among stakeholders, an aspect that is reflected also in its economic results and its ranking in the principal ESG ratings and sustainability indices.


Business and governance issues

A. Operational efficiency (Global Infrastructure & Networks)
B. Decarbonization of the energy mix (Global Power Generation)
C. Customer focus (Retail)
D. New technologies, services, and digitalization (Enel X)
E. Sound governance and fair corporate conduct
F. Economic and financial valid creation

Social issues

G. Engaging local communities
H. People management, development, and motivation
I. Occupational health and safety
L. Sustainable supply chain

Environmental issues

B. Decarbonization of the energy mix (Global Power Generation)
M. Environmental compliance and management

Economic and financial value creation

The creation of economic value is essential for the Group’s enduring survival and its long-term sustainability. In this context, the Company’s financial performance is among the material issues for both stakeholders and the Group. In 2019, Enel posted a gross operating margin of 17.7 billion euros and distributed a minimum dividend per share of 0.33 euros, representing an increase with respect to 2018.


Decarbonization of the energy mix


The fight against climate change has become one of the key challenges facing companies. In particular, in the utilities sector this has led to the development of regulations and public policies aimed at promoting a global zero emissions economy, in which electrification of the energy demand plays a key role. Institutional investors are devoting ever greater attention to the management and results of companies in relation to climate change. In this context, Enel has defined specific objectives to reduce emissions of greenhouse gases (GHG), focusing on growth of renewable capacity and gradual closure of coal power plants. Details of the goals and actions implemented are shown in the sections dedicated to Enel’s commitment to combating climate change in the Sustainability Report.


Find out more by browsing the interactive version Sustainability Report 2019.