According to recent studies, more than 80 percent of a company’s market value consists of so-called intangible assets. In other words, anything that cannot be listed on a balance sheet or financial statement. Therefore, it comes as no surprise that an increasing number of investors evaluate companies based on ESG factors (Environment, Social and Governance), that is, good governance criteria and social sustainability and environmental practices.
Along with a financial and economic evaluation, such an analysis provides a comprehensive overview of a company’s evolution. It is for this reason that Enel has been publishing an annual Sustainability Report since 2003. This document lays out the Group's efforts in areas such as sustainable development, environmental protection and relations with communities. The 2015 edition, called Seeding Energies, presents and documents for the first time the efforts that our company has made to achieve four of the 17 Sustainable Development Goals (SDGs) set by the United Nations.
Today, more than one billion people still lack access to electricity. The sector’s leading companies, such as Enel, have a duty to take on the challenge of reducing the power divide and making the planet more sustainable. Among Enel’s medium-term objectives (set for the year 2020) – which also include guaranteeing access to electricity to 3 million people who currently still lack power – is that of providing basic education on energy issues to 400 thousand people and contributing to the employment and economic growth of an additional 500 thousand individuals. Our goal is to cross the carbon-neutral finish line by 2050, by completely eliminating CO2 emissions from all of our production activities.
In line with our Open Power strategic approach, Enel has placed environmental, social and economic sustainability at the centre of its corporate culture and is implementing a sustainable development system that is based on the creation of shared value, both inside and outside of the company.
In order to ensure a transparent, accurate report, we follow the “Sustainability Reporting Guidelines” defined by the Global Reporting Initiative (GRI), an independent international organisation that helps businesses, governments and other organisations understand and communicate the impact of business on sustainability. In particular, the GRI’s SDG Mapping Service confirmed that the SDGs in our Sustainability Report are properly mapped and in line with their relative indicators, as well as with the G4 international accounting standards. In 2015, for the fourth consecutive year, our Sustainability Report was based on a materiality analysis, a methodology that serves to define strategies by taking into account, not only environmental, social, business and governance expectation, but also those of stakeholders.
Between now and 2020, the Group’s sustainability objectives will focus on five main areas: innovation and operational efficiency, responsible relations with communities, quality in customer relations, management, development and motivation of people, and decarbonisation of the energy mix. These objectives have attracted ethical investment funds, which at the end of 2015 accounted for 8 percent of our share capital.