Commitment to the fight against climate change

Climate change is the main global challenge of the 21st century, and can only be answered via the active engagement of all interested parties, including the private sector. Enel is fully aware of this challenge and has developed a business model aligned with the objectives of the Paris Agreement and achievement of decarbonization of its energy mix within 2050. A strategy confirmed in 2019, responding to the UN call to action and signing a pledge to limit the global temperature rise to 1.5 °C and to achieve zero emissions by 2050. The transition must also be fair and inclusive for all, promoting far-reaching actions based on climatic, energy-related, environmental, industrial and social aspects.

In order to orient its climate strategy, Enel has analysed the various climatic scenarios, both physical and transitional, and identified the main risks and opportunities in the short, medium and long term. In the 2020-2022 Strategic Plan Enel has assumed a commitment to the decarbonization of generation and consumption, simultaneously pursuing electrification of end customers to deal with climate change and guarantee affordable and clean energy. Enabling factors for decarbonization and electrification are identified in infrastructure and networks, and also ecosystems and platforms. Specifically, with regard to decarbonization, investments are planned over the next three years in the amount of 14.4 billion euros, the majority of which addressed to higher renewable capacity, with average annual growth of 4.7 GW, for a total capacity of 14.1 GW. This will bring the proportion of renewables, in terms of total installed capacity, to 60% within 2022. Moreover, a parallel reduction of coal production of around 74% is planned by 2022, compared to 2018.

In September 2019, Enel announced the new goal of reducing direct emissions of greenhouse gases per kWh_eq by 70% within 2030, compared to 2017, this objective being certified by the SBTi. In confirmation of the constant commitment to this matter, 2019 saw the continuation of the downward trend in CO₂ emissions, which allowed Enel to reach the certified objective of 350 g/kWh_eq established in 2015, in 2020 – one year in advance. In fact, CO₂ emissions linked to the generation of electricity totalled 296 g/kWh_eq, hence 20% less than in 2018. In addition, around 55% of electricity generated in 2019 was CO₂ free, and the installed renewable capacity was 42 GW (50% of the total net capacity in 2019). This capacity is increased by the capacity managed via the BSO model (“Build, Sell and Operate”) equivalent to 3.7 GW.

In order to guarantee increased transparency in its communications and relationships with stakeholders, Enel periodically reports on its activities in line with the international standards of the GRI (Global Reporting Initiative) and is publicly committed to adopting the recommendations of the Task force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board, which published specific recommendations for the voluntary reporting of the financial impact of climate risks in June 2017. The Group has also integrated the “Guidelines on reporting climate-related information” published by the European Commission in June 2019, taking into consideration the results of the first work performed by the European Lab Project Task Force on Climate-related Reporting (PTF-CRR), which collects the associated best practices (“How to improve climate-related reporting”). The alignment of Enel’s disclosure both with respect to the European directive and with respect to the TCFD, testifying to the Group’s commitment to climate change related disclosures, is available at the following link.