The process of materiality analysis, through the involvement of stakeholders and relevant experts, allows us to define material topics, i.e., the topics that represent the organization's most significant impacts on the economy, environment, and people, including impacts on human rights. Material topics are our priorities for action on which we define our sustainability goals aimed at creating value in the short, medium, and long term as well as the content to be included in the documents that constitute our Corporate Reporting.
Enel performs the materiality analysis based on the most widespread international standards, including the GRI Universal Standards 2021 (Global Reporting Initiative), AA1000 (Accountability 1000) and taking into consideration the new requirements introduced at the European level by the Corporate Sustainability Reporting Directive (CSRD) and the Exposure Drafts of the European Sustainability Reporting Standards (ESRS) made available by EFRAG (European Financial Reporting Advisory Group). The Value Reporting Foundation standards – SASB Standards and the SDG Compass, which supports companies in adapting their strategies to the United Nations Sustainable Development Goals – were also considered.
As a result of the continuous monitoring of stakeholder expectations (dynamic materiality), the traditional way of looking of the priorities of ESG topics (“Priorities Materiality ") is enriched by integrating a view of the significance of the impacts generated and suffered (impact materiality and financial materiality) by the Company in the reference context ("Double Materiality"):
- impacts suffered, actual and potential, by the Company (financial materiality). Material topics are those that generate risks or opportunities for the Company by affecting its future cash flows and thus its enterprise value in the short, medium or long term;
- impacts generated, actual and potential, by the Company (impact materiality). Material topics are those for which the Company generates significant actual or potential impacts on society and the environment in the short, medium or long term.