An open, global vision where all the stakeholders (people, clients, shareholders, suppliers and communities) contribute with passion and innovation to the creation of long-term value.
“Seeding Energies” is the name of the approach adopted by Enel towards a model of business that integrates the environment, collectivity, business and governance in the creation of its own strategy for growth. It is a model that we have promoted, monitored and reported to the Group’s stakeholders in the 2017 Sustainability Report and the 2018-2020 Sustainability Plan, alongside our financial reporting. It was also included this year in the Consolidated Non-Financial statement (NFS) which was prepared in compliance with the Italian Legislative Decree 254/16 (which implements the Directive 2014/95/EU of the European Parliament and Council regarding the disclosure of non-financial information).
“Enel carefully integrates and combines all relevant factors: economic-financial, environmental, social and governance-related. The creation of long-term value is as closely linked to the Group’s robust financial management as it is to the way we interact with the environment, cooperate with communities, ensure an open culture based on listening and inclusion and promote an increasingly integrated and transparent corporate governance system”
Francesco Starace, Enel CEO, and Patrizia Grieco, Enel Chairman
In 2017, the Group reported an ordinary EBITDA of €15.6 billion, with 63,000 employees, a client average of approximately 64 million and over 2 million kilometers of grid networks, having installed 48 million smart meters, including 1.7 million new generation models.
In line with the low-carbon strategy, 45% of Enel’s energy generation is zero emission, with a renewable managed capacity of approximately 41 GW and a total managed capacity of approximately 88 GW.
Significant results have been reached in our commitment to the United Nations Sustainable Development Goals (SDGs): the 2020 target for access to “inclusive and equitable quality education” (SDG 4) was achieved, reaching approximately 600,000 beneficiaries; considerable progress has been made in providing “affordable and clean energy” (SDG 7), reaching 1.7 million beneficiaries in Africa, Asia and Latin America; the 2020 target for “decent work and economic growth” (SDG8), set at 1.5 million recipients, was met, and progress was made towards complete decarbonisation, or “climate action” (SDG 13), despite a year characterised by low availability of water resources, reaching 400 gCO2/kWheq (the overall value of the managed production).
The path towards new forms of energy was reinforced by the new 2018-2020 Strategic Plan, which outlined further steps and the acceleration of its implementation. The three-year plan provides investments for growth equal to €14.6 billion in grid digitalisation and the development of renewable energies. Our model of sustainable development is based on optimising assets and on innovation, on growth through technology and low carbon services, on the involvement and inclusion of communities, and on digitalisation and attention to the customer.
This strategy provides precise targets for our operations: by 2020, the renewable managed capacity will be approximately 48 GW, reducing thermal capacity to roughly 39 GW. Consequently, 55% of our energy production will be zero emission, with the specific aim of reducing Carbon Dioxide emissions to less than 350g CO2 for each kilowatt-hour produced (kWheq). On the environmental front, the targets of a 30% reduction (compared to the corresponding 2010 values) in the specific emissions of Sulphur Dioxide (SO2) and Nitrogen Dioxide (NOx) and a 70% reduction of dust particles by 2020 were confirmed (SDG 13). Enel also continues to promote the social and economic growth of the local communities where we operate, confirming and reinforcing its public commitment to a further three of the 17 SDGs: 800,000 beneficiaries of “quality education” by 2020 (SDG 4), double the previous target of 400,000 beneficiaries; 3 million beneficiaries of “affordable and clean energy” by 2020 (SDG 7), in particular in Africa, Asia and South America: 3 million beneficiaries of “decent work and inclusive and sustainable economic growth” by 2020 (SDG 8), again doubling the previous target of 1.5 million beneficiaries.
This plan has all the features of the energy of the future: efficiency, flexibility, digitalisation, the development of e-mobility and the integration of renewable energies, as well as the new role of the customer as an informed and demanding central player.
The Enel sustainability strategy promotes the 17 United Nations SDGs throughout the entire value chain, uniting mature businesses and those just starting out.
“After the 2030 Agenda, nothing in the world of business is the same as it was before. The companies that want to plan long-term success are those using sustainability indicators to guide their strategies”
Andrea Valcalda, Head of Sustainability, Enel
Through the materiality analysis process, we identify and evaluate priorities for all the stakeholders, and then verify the ‘alignment’ (or ‘misalignment’) with corporate strategy. The process of materiality analysis has been updated over the years to bring it into line with the best standard practices and to forecast trends. In 2017, the analysis included 202 initiatives, 16 countries and 40 companies.
Each chapter of the Sustainability Report opens with a dashboard that recalls the corporate targets for 2017-2019, the 2017 results and the new 2018-2020 plan. It is a concise sustainability review that demonstrates the value created by the company and lays out the path for the next three years.
“The dashboards provide a clear and concise view of the actions taken to create sustainable value and long-term progress, by identifying specific ESGIT (Environmental, Social, Governance, Industrial, Technological) tags”
Giulia Genuardi, Head of Sustainability Planning and Performance Management, Innovation and Sustainability, Enel
All reporting is guided by a rigorous process, in line with the GRI Standards criteria, with accountability principles, with the United Nations Global Compact and with the main sustainability indices.
Enel’s commitment has been recognised by the financial community, which is showing increasing attention to ESG (environmental, social and governance) issues. As of 31 December 2017, socially responsible investors accounted for over 8.6% of the company capital.