Enel’s organisational and corporate governance model defines specific tasks and responsibilities for which the Company’s main governance bodies are responsible, guaranteeing that the risks and opportunities related to climate change are suitably taken into consideration during all important company decision-making processes.
Furthermore, Enel has a management team that assigns the responsibilities related to climate topics to the specific Functions that contribute towards guiding Enel’s leadership in energy transition. Each area is responsible for managing the risks and opportunities related to climate change for their own area of competence.
The Enel governance model to tackle climate change
Incentives system concerning climate change
The Company’s remuneration policy includes different mechanisms for the purpose of progressing towards energy transition, in particular:
- a variable short-term remuneration (MBO) that can include objectives relative to the specific company function of each manager. For example, they can include objectives related to the development of renewable energies for the manager in the Global Power Generation Business Line or related to energy transition solutions in the Enel X Global Business Line. Furthermore, the new MBO system assigned to the CEO for 2020 envisions the addition of a new quantitative climate objective connected to the growth of the renewable net installed capacity in comparison to the total net installed capacity, which represents the 15% short-term variable retribution;
- a long-term variable remuneration that, starting in 2018, includes a quantitative climate objective, that is, the reduction of Enel Group CO2 emissions per kWheq over the next three years, which represents 10% of total longterm variable retribution;