SUSTAINABILITY REPORT
2023
Consolidated Non-Financial Statement prepared in accordancewith Italian Legislative Decree 254/16_year 2023

The graphic design of the Enel Group’s Corporate Reporting isa symbolic way of representing the Company, from electricity
generation to electricity distribution and utilization.
Circular geometric shapes blend together to create a balanced
system, emphasizing a focus on growth and on improving
people’s lives.

SUSTAINABILITY REPORT
2023
Consolidated Non-Financial Statement prepared in accordancewith Italian Legislative Decree 254/16_year 2023

INDEXCOMPANY VIEW

Enel’s Sustainability Report sets out the commitments
and results achieved in ESG (Environmental, Socialand Governance) issues, taking into account its
stakeholders’ expectations.
It begins with a message to stakeholders from the
Chief Executive Officer and the Chairman, followed by
the “Enel’s commitment to sustainable development”
section, which outlines the Company as a whole, its
business model and main performance indicators, theESG context in which it operates, the engagementof stakeholders and material topics, the main
objectives of the 2024-2026 Sustainability Plan andthe outlook to 2030, sustainability governance, therole of Sustainability-Linked finance, its positioning insustainability ratings, indices and benchmarks, as wellas information on the European taxonomy.
A section is dedicated to stakeholder engagement andthe results of the so-called “double materiality”.
The “Performance 2023” section is divided by
topic and outlines the results and objectives of the
Sustainability Plan. Each topic is introduced by the“sustainability dashboard”, which summarizes the
key commitments, as well as their state of progressand contribution to the United Nations Sustainable
Development Goals (SDGs).
The appendix sets out: (i) the criteria used in drafting
the report; (ii) the main quantitative indicators relating tosustainability performance (“Performance indicators”);(iii) the Content Indexes which provide simplified keys tointerpretation in relation to GRI, SASB, TCFD, and humanrights (the latter is included in the dedicated chapter); (iv)reporting on the European taxonomy, the Green Bond
Report and the Sustainability-Linked Financing Report.

• Integrated Annual Report 2023
•R
 eport and financial statements of Enel SpA
at December 31, 2023

1.

LETTER TO
STAKEHOLDERS

Enel from now on

2.

6

ENEL’SCOMMITMENT
TO SUSTAINABLE
DEVELOPMENT

2.1 The sustainability context

10

2.2 The business model andvalue creation

14

2.3 Stakeholder engagement andmateriality analysis

26

2.4 Sustainability Plan

28

3.

STAKEHOLDERENGAGEMENT
AND MATERIALITYANALYSIS•R eport on corporate governance and ownership structure
Financial year 2023

3.1 Framework

34•R eport on the remuneration policy for 2024
and compensations paid in 2023

3.2 Stakeholder engagement37

3.3 Double materiality

43

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Performance indicators

TOPIC VIEW

4.
E

4.1

Business drivers

4.2

Zero emissions ambition andjust transition

4.3

4.4
S

G

C

5.

PERFORMANCE
2023 
68

Roadmap towards natural
capital conservation

78

5.1

Methodological note

364

5.2

Performance indicators

372

5.3	Content Index

130

Circular economy

APPENDIX

176•G
 RI and ESRS interoperability

410• SASB424• TCFD426•S ustainable financedisclosure regulation (PAI)

427
434

4.5

Enel people

186

5.4

European Taxonomy

4.6

Sustainable supply chain

208

5.5

Sustainable Finance

4.7

Engaging communities

220

4.8

Customer centricity

228

4.9 Health and safety of people242

4.10 Sound governance258

4.11 Managing human rights

286

4.12 Tax transparency

310

4.13 Innovation

338

4.14 Digitalization

350

Reference to the materiality analysis

E

Environment

S

SocialG

Governance

C

Cross

• Green Bond Report472•S ustainability-Linked
Financing Report

486

Reference to the Sustainability Plan
Zero emissions ambition

Human rights

NatureGrowth accelerators

Stakeholders

Paolo Scaroni

Flavio Cattaneo

Chairman

Chief Executive Officer
and General Manager

ENEL FROMNOW ON
2-6
Dear stakeholders,
The year 2023 marked an important change in the
management of the Enel Group with the renewal of
the entire Board of Directors and the appointment of
the new Chairman, Paolo Scaroni. In turn, the Boardof Directors has appointed Flavio Cattaneo as Chief
Executive Officer.
The new management has defined the Group’s strategy,
based on three pillars: (i) Profitability, flexibility andresilience through selective capital allocation aiming at
maximizing the Group’s return while minimizing risk;(ii) Efficiency and effectiveness through the simplificationof activities and processes, a leaner organization withclear accountability and a focus on core geographiesin which the Group has an integrated position (Italy,
Spain, Brazil, Chile, Colombia, and the United States) inorder to maximize cash generation and compensate for
inflationary dynamics and rising cost of capital;(iii) Financial and environmental sustainability to pursue
value creation strengthening the financial structure, while
addressing the challenges of climate change.

6

Sustainability Report 2023

In 2023, Enel is confirmed as the world’s largest private
operator in the renewable energy sector, with 63 GW ofmanaged capacity (including BESS), and in the energy
distribution sector, with over 70 million end users
connected to the grids. Furthermore, it is the privatecompany with the largest customer base, amounting toover 61 million people, to whom it supplies energy andrelated services.
The Group continues to pursue the decarbonization
roadmap in line with limiting global warming to below
1.5 °C: in 2023, absolute direct and indirect greenhousegas emissions along the entire value chain, amounting to94.3 MtCO2eq, were reduced by 26.3% compared to 2022,
in line with the decarbonization targets for 2030 and
2040, as certified by the Science Based Targets initiative(SBTi).
In 2023, Enel also confirmed the technological leadershipin generation from renewable sources, storage systems,
and distribution networks. In the energy distributionsector, Enel continues to modernize and digitalize
electricity grids, both to enhance their resilience toincreasingly extreme weather events and to prepare them

1

Letter to stakeholders

2Enel’s commitment
to sustainable development3

to play the role of enablers of the energy transition.
The push for innovation will continue to be a strategic
driver. The Group will continue to monitor the evolutionof new technologies that will mature in the medium-long
term, such as hydrogen and the new small and modular
fission or fusion nuclear reactors.
Enel is also leading the path of energy transition andelectrification of consumption through the developmentof a portfolio of products and services dedicated toresidential consumers, businesses, and municipalities.
In the countries where it operates, Enel recognizes theimportance of building strong and positive relationships
with all stakeholders, from local communities togovernments. Continuous dialogue with thesestakeholders makes it possible to carry out projects that
respond to common priorities and needs and allow thecreation of sustainable and shared value.
People and human capital play a central role in leading
the change and the achievement of strategic objectives.
More than 61,000 people (about 23% are women),
79 different nationalities in 38 countries, 4 generations
working together, all demonstrate how diversity andStakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

inclusion are a fundamental prerequisite for a sustainable
company. Enel pays constant attention to people’s
training and to the enhancing of talents, promoting
growth paths based on merit.
Another key element is the more than 8,300 qualified
suppliers, with whom the Group shares the goal of
creating sustainable processes, capable of maximizing
economic, social, and environmental benefits, in theknowledge that it is necessary to minimize the need for
critical raw materials through innovation and circular
economy.
Enel also maintains vigilant and constant attention tosafety in the workplaces: safety is not only a corporate
objective but a commitment to mutual responsibility
between the Company, workers, and suppliers. In order topromote a shared and acted culture, Enel has launched a
global communication campaign on safety issues.
To conclude, the Group is determined to create value forall stakeholders, contributing to the energy transition,
the electrification of consumption, and the fight against
climate change.

Enel from now on

7

8

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

COMPANY VIEW

2.
ENEL’S COMMITMENT
TO SUSTAINABLE
DEVELOPMENT● The Enel Group strategy
It is based on three pillars:• Profitability, flexibility, and resilience through selective
capital allocation• Efficiency and effectiveness• Financial and environmental sustainability.
● Zero emissions ambition and just transition
A decarbonization roadmap for both direct and indirectemissions throughout the value chain.
A commitment to a just energy transition, managing theenvironmental and social components in an integrated way toensure that no one is left behind.
● Toward continuous improvement
A daily individual and collective commitment, which involves
people, communities, companies, industries and institutions,leveraging innovation, digitalization, circular economy andSustainability-Linked finance.

9

THE SUSTAINABILITYCONTEXTThe global context in which the Group operates has beencharacterized over the past 12 months by interlocking
events that have caused turmoil at all levels. In addition to
the post-pandemic geopolitical events, there was a significant rise in interest rates and inflation with a corresponding downward revision of GDP growth in many countries.
Moreover, the prolonged military conflict between Russia
and Ukraine, the more recent conflict in the Middle East,
the unstable relationship between the US and China, andthe resulting uncertainty on a global scale continued toexacerbate energy, raw materials and food markets, slowing the process of normalizing inflationary pressures on a
global scale. At the same time, the state of the art of theParis Agreement targets calls for an acceleration of theenergy transition to limit the increase in average global
warming to within 1.5 °C compared to pre-industrial levels.
At the recent COP 28 on climate change held in Dubai, atarget was set to transition away gradually from fossil fuelsby 2050 and to triple renewable capacity by 2030 (11 TW
vs 3.6 TW in 2022).

The path towards achieving the UN Sustainable Development Goals is significantly behind, with only 15% currently on track, due to various interconnected crises andtensions. In response, the UN Global Compact launched
the “Forward Faster” campaign in September 2023, urging companies to accelerate their efforts, particularly in
Climate action, Finance and investment, Water resilience,
Gender equality and Living wage.
Governments and regulators have well understood theneed to pursue ever greater energy independence
through energy generated from renewable sources. Thisis a context in which the role of distribution networks willbe crucial in meeting demand and accommodating new
capacity from renewables, along with that of energy storage systems, which in turn will be crucial in ensuring not
only the penetration of renewables, but also a stable andreliable supply.
Climate, human rights and just transition are global priorities for action. Tackling the climate crisis has significant
social impacts, and the imperatives of a just transition andrespect for human rights must be taken into account inbusiness practices, as reaffirmed by the Paris Agreement
and COP 28, putting people at the center to ensure support and engagement.

10

Sustainability Report 2023

For further details see the chapters “Zero emissions
ambition and just transition” and “Managing human rights”
of this Report.

There is also a growing focus on issues related to natureand in particular biodiversity. The recently announced
commitment at the World Economic Forum to start making nature-related disclosures, building on the Recommendations of the Taskforce on Nature-related Financial
Disclosures (TNFD) published in September 2023, underlines the crucial turning point on this topic for the private
sector and reiterates the importance of considering thesynergies between people, nature and climate. In line withthis trend, even leading ESG ratings demand commitments from companies on biodiversity conservation.
Digitalization driven by artificial intelligence offers opportunities and challenges, eliciting responses from regulators, but also raises concerns about the ethics of artificial
intelligence and its implications for the workforce. Considering the growing need to ensure that artificial intelligenceis used responsibly and safely, the European Union has
approved a draft law on the subject that would regulate
the use of large language models and generative artificial
intelligence.
Finally, mandatory sustainability reporting, spearheadedby the European CSRD (Corporate Social Responsibility Directive) and the International Sustainability Standard
Board, is progressively imposing itself globally, requiring
increasing cooperation and collaboration between thevarious institutions and regulators in different countries.
The various regulations and mandatory requirements are,however, faced with the growing risk of anti-ESG sentiment, which may delay their adoption in some regional
contexts.
The sustainability landscape is constantly evolving and, inorder to meet challenges and seize opportunities, constantmonitoring of trends is required along with joint action by
the different stakeholders to weigh up needs while aiming
at sustainable progress. Companies can play a crucial roleby promoting a fair and sustainable transition through concrete and credible commitments in line with the context.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s participation in sustainability networks
2-28

1. United Nations Global Compact
In 2004 Enel joined the United Nations Global Compact bycommitting to its ten founding principles on human rights,
labor standards, environmental protection and anti-corruption. In 2023 Enel continued its commitment in the areaof sustainable finance, co-chairing the “CFO Coalition for
the SDGs”, being part of the new Advisory Board and contributing to the preparation of various reports. The Group
was also member of the Think Lab on Just Transition, it hascontinued its commitment as a patron of Transformational
Governance and has participated in the Business & Human
Rights Accelerator. In 2023, Enel was among the early mover companies of the Forward Faster Campaign – the initiative that urges the private sector to act with more ambitious
goals for reaching the SDGs in five areas of priority – committing specifically to the targets of Climate action and Finance & investment.

2. Sustainable Energy for All
Enel’s collaboration with Sustainable Energy for All (SEforALL), which started in 2011 and continued over the years,
becoming a Member of the Board between 2014 and 2018
and Chairman of the Administrative Board from 2020 to
May 2023, has also continued this year with the commitments made through the Energy Compacts. In fact, theGroup also contributed to the Energy Compacts Progress
Report 2023, promoted by SEforALL, which collects the
progress of the commitments to SDG 7 – clean and affordable energy for all – whose results include Enel’s three

Energy Compacts: Enel’s Energy Compact; Santiago Energy Compact; Electrification of Sardinia. Furthermore, since2021 SEforALL co-manages with the Enel Foundation theOpen Africa Power program – created by the Enel Foundation itself in 2018 and run with the support of MAECI and incollaboration with prestigious Italian and African academic institutions – dedicated to providing training in the areaof energy transition to African master’s and PhD students,
which has a community of more than 500 alumni.

3. CSR Europe
Since 2005, Enel has been part of CSR Europe, and iscurrently a Board member. In 2023 it participated in“Leadership Hub Materials and Markets”, which focusedon the human rights due diligence and the potential environmental and social impacts associated to raw materials sourcing and on European sustainability reporting
standards; this has led to the preparation of a position

paper and a letter addressed to European institutions regarding the new European standards (ESRS – European
Sustainability Reporting Standards). In 2023 the European Business Toolbox for Just Transion, a tool that provides
guidelines for a just transition strategy to companies,
was launched. The Group also participated in the Collaborative Platform on Tax Responsibility and Transparency.

4. World Business Council for Sustainable Development
Since 2016, Enel has been a member of the World BusinessCouncil for Sustainable Development and is represented
both on the Board, and at Liaison Delegate level. In 2023,
the Group continued to be involved in multiple programs
and projects, including the Energy Pathway, for which it isalso a member of the Leadership Group. Since 2022 Enelhas been part of the Business Commission to Tackle Inequality, in which it is a Commissioner and participates invarious working groups. The Group has also played an active role in the projects: “Nature-based solutions”, “Transport & Mobility”, “Carbon Capture Storage and Removals”.

The sustainability context

11

5. Global Reporting Initiative
Member of the Global Reporting Initiative since 2006 andthe GRI Community since 2016, in 2023 Enel continued toengage with the other members of the Global Sustainability Standards Board, once again confirming its efforts toachieve the Sustainable Development Goals, while demonstrating commitment, accountability and transparency
through corporate disclosure.

6. IFRS Sustainability Alliance
In 2023 Enel continued its commitment to the IFRS Sustainability Alliance to promote transparent, reliable andcomparable reporting on environmental, social and governance issues.

7. Global Investors for Sustainable Development (GISD) Alliance
In 2023, Enel continued its participation in the Global Investors for Sustainable Development (GISD) Alliance, an integral
part of the UN Strategy for Financing the 2030 Agenda for

Sustainable Development. Enel actively contributed to the
Alliance debates on mobilizing investments to support sustainable development.

8. Science Based Targets Network (SBTN) for Nature
After joining the Science Based Targets Network’s Corporate Engagement Program in 2021, Enel again committed
to SBTN’s goals and vision and contributed to the development of methods and tools. SBTN – a unique collabo-

ration of not-for-profit and world-leading organizations– provides companies with guidance to set science-based
goals for nature, including freshwater, oceans, land andbiodiversity.

9. Taskforce on Nature-related Financial Disclosures (TNFD) Forum
After becoming a member of the Forum in 2021, in 2023
Enel's collaboration with the Taskforce on Nature-related
Financial Disclosures (TNFD) continued. In particular, Enelparticipated in the TNFD Pilot Program, which tested the
new TNFD Framework and contributed to the publicationof the TNFD recommendations for facilitating companies

and financial institutions in the assessment and reportingof risks and opportunities related to nature and biodiversity.
Finally, in January 2024, Enel became part of the group of
TNFD early adopters, committing to start publishing the first
TNFD-aligned disclosure for the 2025 financial year.

10. First Movers Coalition
In 2023 Enel confirmed its commitment to the working
group dedicated to steel of the First Movers Coalition,
contributing to the definition of positioning and identification of policy asks for the steel sector. The coalition is

12

Sustainability Report 2023

guided by the Chairman and the Department of State of
the United States, in close collaboration with the World
Economic Forum, and has the objective of decarbonizing
hard to abate industrial sectors.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

11. Sustainable Stock Exchanges Initiative
In 2023 Enel participated in the Sustainable Stock Exchanges Initiative as an Official Supporter. Furthermore, as
member of the Advisory Board dedicated to the Voluntary
Carbon Markets, Enel contributed to the preparation of

the guide lines: “How exchanges can maximize the opportunities of carbon markets – An action framework to guideexchanges”.

12. World Climate Foundation
In 2023 Enel was member of the World Climate Foundation, a multi-stakeholder and multi-sector network to promote the transition to a zero-emission and nature-posi-tive planet through multilateral dialogue and agreements,
as well as investment in sustainable solutions.

13. CLEANaction
Since 2023 Enel has been member of the Coalition Linking
Energy And Nature for action (CLEANaction), promoted byWWF, which involves electrical companies and sector as-sociations with the objective of assessing and mitigating
the impacts and potential risks that new renewable energy
generation projects could have on biodiversity and nature.

14. We Mean Business Coalition
Enel collaborates with the We Mean Business Coalition
through initiatives and campaigns targeted toward accelerating a just transition and toward a world aligned withthe climatic goal of 1.5 °C. In April 2023 the Group became
part of the Energy Advisory Group of the coalition thatprovides guidelines and advice on the most recent de-velopments in terms of challenges and opportunities forthe energy sector. In addition, Enel also contributed to the
Corporate Climate Stocktake (CCST) report, which records
the progress, challenges and opportunities of the private
sector for reaching the Net Zero target.

15. GreenBiz Executive Network Europe
In 2023, Enel continued its partnership with the European
GreenBiz executive network, which supports large companies toward achieving an even more deep-rooted sus-

tainable transformation and increasingly ambitious development goals.

For more information on Enel’s participationin the sustainability networks, refer to thededicated chapters in the Sustainability Report.

The sustainability context

13

THE BUSINESS MODEL
AND VALUE CREATION
2-1

2-6

303-3 303-5 305-4 401-1 404-1 405-1

EU1

EU2

EU3

EU4

Enel remains leading group in the energy sector, with apresence in 43 countries on five continents, vertically integrated along the entire value chain.

43

Countries

more than

1,000
subsidiaries

PRESE

NC

61,055E

total number of Enel
employees

14,001
no. of suppliers

The business model is focused on sustainability and built
to seize the opportunities that come with the changing
environment. It outlines how the Company’s organizational
units, linked to its three main businesses (Generation, Distribution and Customer sales), must work to capture all possible benefits related to emerging trends, in particular theenergy and digital transition, and to be able to effectively
manage all the risks related to the rapidly changing energy
sector environment.
In order to benefit fully from all the opportunities emerging
from the market in which it operates, the Group has identified three different business models, Ownership, Partnership and Stewardship, that it can leverage to achieve its defined ambitions.
Exploiting synergies between the different business areasand implementing actions also through the lever of Innovation, Enel promotes solutions to drive sustainable prog-

14

Sustainability Report 2023

ress, reduce environmental impact, meet the needs of customers and the local communities in which it operates, andstrives to ensure high safety standards for Enel people andsuppliers.
At the basis of its activities, the Enel Group has a solid, dynamic and constantly oriented ethical system that incorporates best practices at national and international level,
which all people working in and for Enel must respect andapply in their daily activities. The system is based on specific compliance programs including: the Code of Ethics,
the Human Rights Policy, the Zero Tolerance of Corruption
Plan, the Enel Global Compliance Program, the Organization and Management Model pursuant to Legislative Decree No. 231/2001, plus other national compliance models
that may have been adopted by Group companies in accordance with local regulations.

1

2
Enel’s commitment
to sustainable development

Letter to stakeholders

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

The integrated value chain and the creation of value
for and with stakeholders
Enel is the largest global private operator in the renewable energy sector, with 55.5 GW of installed capacity(1),accounting for 68.2% of the entire generation capacity(Enel Green Power and Thermal Generation). It is the largest private electricity distribution company globally, withmore than 70 million end-users connected to the grids(Enel Grids and Innovability), of which 45 million have active smart meters. Finally, it has the largest customer baseamong private companies (Enel X Global Retail), with morethan 61 million customers. To guarantee a stable energy
supply, the Group operates in wholesale energy markets(Global Energy & Commodity Management).

INTEGRATED VALUE CHAINRAWMATERIALS
BUSINESSPARTNERSELECTRICITY
GENERATIONTOTAL NETEFFICIENT INSTALLEDCAPACITY

NET EFFICIENTINSTALLED RENEWABLE
CAPACITY84.6 GW in 2022

63.3% in 2022

81.4 GW

68.2 %ELECTRICITY
DISTRIBUTION AND
TRANSMISSIONNETWORKEND USERS

2,024,038 km in 2022

73 mil in 2022

1,899,419 km

PRODUCTS
AND SERVICESRETAIL CUSTOMERSDEMAND RESPONSE

66,784,895 in 2022

8.5 GW in 2022

61,118,024

NETWORKS

9.6 GW

END-OF-LIFE
MANAGEMENTOWNED PUBLIC CHARGING
POINTS(1)24.3 thousand

22.1 thousand in 2022

(1)

(1)

ENERGYEFFICIENCYSi precisa che i dati esposti, nel caso includessero anche i punti di ricarica delle società gestite in joint venture, sarebbero pari a 25.337 al 31 dicembre 2023

It should be notedthat the figures shown, if they also included the charging points of companies operated in joint ventures, would be 25,337 as of Deceme 22.617 al 31 dicembre 2022.
ber 31, 2023, and 22,617 as of December 31, 2022.

With the help of its stakeholders (including Enel people, suppliers, partners, communities, customers, the financial community, institutions, the media, businesses, trade associations, etc.) Enel is dedicated to creating a transition path thatis equitable and that generates shared value in the contexts
in which it operates. In order to achieve sustainable financial,(1)

70 milenvironmental and social results, it is important to build solidand lasting relationships in the countries in which the Group
operates. An ongoing dialogue with individual stakeholders
and their representative organizations makes it possible toidentify priorities for action and define the contribution to
the UN Sustainable Development Goals (SDGs).

Including managed renewable capacity and BESS (Battery Energy Storage System), in 2023 63 GW of installed capacity was reached.

The business model and value creation

15

STAKEHOLDERS

2023 VALUESPLANET

207.3 TWh

Net electricity generation

160 gCO2eq/kWh Scope 1 GHG emissions Intensity
relating to Power Generation

0.20 l/kWh

Total specific freshwater
withdrawal

168 gCO2eq/kWh Scope 1 and 3 GHG emissions
Intensity relating to Integrated
Power

23.3%

Withdrawal of water in water
stressed areas

16.8 MtCO2eq

Scope 3 emissions (Gas Retail)183 no.

Projects for the protection of
species and natural habitats

0.09 g/kWhSpecific emissions of SO2

0.26 g/kWhSpecific emissions of NOx

35.4 Mm3

Total water consumption

22.1%

Withdrawal of water in water
stressed areas

8,343 haHectares covered by restoration
projects

Enel is committed to defining measuresand actions for mitigating the impacts
generated by climate changes,
including the loss of biodiversity andthe disappearance of ecosystems, toguarantee a safe, healthy, clean andsustainable environment to respect therights of humans and future generations.
See the chapters “Zero emissions ambitionand just transition” and “Roadmap towards
natural capital conservation”.

ENEL PEOPLE

Enel is committed to nurturing a close
relationship with them, particularly
by paying greater attention to caring
activities and active listening, while
promoting internally a culture of inclusion,
enhancement of diversity, innovation andbusiness entrepreneurship to face thechallenges posed by a constantly changing
context.
See the chapter “Enel people”.

INPUT

Enel employees

6.6%

Turnover32.5%

Proportion of women managers
and middle managers to total
managers and middle managers

0.72 i

Lost Time Injury Frequency Rate(1)– Enel people

47.2%

Women in managerial
succession plans

48.1 hours

Average training hours per
employee

44.8%

Training dedicated to reskillingand upskilling

3.9 mil

Beneficiaries(2) of projects forcommunities

Specific action plans and projects arejointly drawn up, intended to promote
access to energy, fighting energy poverty,
supporting quality education and socioeconomic development, starting from a
proactive analysis of their needs through ashared value creation model.
See the chapter “Engaging communities”.
The Group faces the challenges oftransition and supports their path ofchange and growth, sharing ideas andinnovations.
See the chapter “Sustainable supply chain”.

CUSTOMERSOUTPUT

61,055 no.

COMMUNITIESSUPPLIERS

2023 VALUES

14,001 no.

Active suppliers

100%

Qualified suppliers assessed for
ESG aspects

150,820 no.

FTE suppliers

66%

Value of supply contracts
covered by CFP certification(3)0.56 i

Lost Time Injury Frequency Rate
– Contractors

Enel analyzes their needs to ensure reliable
responses and establish lasting relationships,
committing itself to offering sustainable
solutions and services that are convenient,innovative, flexible and attentive to the mostvulnerable to ensure equal access to energy.
See the chapters “Business drivers” and“Customer centricity”.

24.3 thousand

Publicly owned charging points(4)300.9 TWh

Electricity sold

45.2 million

End users with active smart
meters(5)177 no./10k
customers

Commercial claims

43.70%

Digital clients

218 min

SAIDI

0.6 million

Beneficiaries of new connections
in rural and suburban areas

PARTNERS

10 no.

Through openinnovability.com, acrowdsourcing platform, the different areasof the Group can interact with start-ups,
industrial partners, small and medium-sizedenterprises (“SMEs”), research centers,
universities and entrepreneurs, to deal
jointly with the challenges of the future andguarantee sustainable progress for all.
See the chapter “Innovation”.

FINANCIAL COMMUNITY

60,163 mil€Enel maintains a constant and open
64%
relationship, based on principles of integrity
and transparency, in compliance with therules and best practices, in order to increase 84.8%
the level of understanding of the activities
carried out by the Group.
See the chapter “Sound governance”.

113 no.

Proof of Concept

46 no.

Solutions adopted in thebusiness

35 no.

Partnership agreements forinnovation

Net financial debt

0.43 €/share

Fixed dividend per share (DPS)

Sustainable sources offinancing on total

4.0%

Cost of debt

Innovation Hubs

Investments aligned with theEuropean taxonomy(1) Number of injuries with at least one day of absence per million hours worked.
(2) Beneficiaries are the people estimated to benefit from a project being carried out. Enel only considers the beneficiaries in the current year. The number of beneficiaries
considers the activities and projects carried out in all the areas in which the Group operates.
(3) Carbon Footprint.
(4) It should be noted that the figures shown, if they also included the charging points of companies operated in joint ventures, would be 25,337 as of December 31, 2023.
(5) The number of Enel end users with active smart meters decreased by 652,004 in 2023, due to the exit of Romania from the scope of consolidation (1,285,969). These
effects were partially offset by increases in Brazil (+412,667), Italy (+129,439), and Spain (87,218). Of which 28.7 million second-generation smart meters in 2023.

16

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

The integrated presentation of financial and sustainability information makes it possible to effectively communicate the business model and the value creation process
in terms of both results and short- and medium-term

4

Performance 2023

5

Appendix

prospects. The management of economic, environmental
and social aspects is increasingly significant in assessing
a company’s ability to create value for the benefit of its
stakeholders.

Economic value generated and distributed for stakeholders
3-3

201-1

Million euros
2023

2022

2023-2022

Economic value generated directly

96,159140,821-44,662-31.7%%

Economic value distributed directly:

86,868130,824-43,956-33.6%

Operating costs

67,631

114,384-46,753-40.9%

Personnel and benefit cost

4,126

3,646

480

13.2%

Payments to capital providers (shareholders and lenders)

8,890

7,691

1,199

15.6%

Payments to government bodies(1)

6,221

5,103

1,118

21.9%

Economic value retained(2)

9,291

9,997

-706

-7.1%

(1)

The amount includes the Total Tax Borne, which represents the total amount paid for taxes that constitute a cost for the Group. The figure for 2022 takes
into account a more precise determination. For more details on Total Tax Borne, please refer to the Sustainability Report and the Consolidated Non-Financial Statement for 2023. The 2022 figures include a more specific determination thereof.
(2) The 2022 figures include a more specific determination thereof.

The economic value generated and distributed directly
by Enel provides a useful indication of how the Group has
created wealth for all stakeholders. The reduction in theeconomic value generated directly is mainly related to thedecrease in sales revenues of energy commodities, in particular gas and electricity, due to both the lower quantities
brokered in the wholesale and retail markets and the reduction in average prices.

The decrease in operating costs is mainly due to the reduction in energy and gas purchase costs due to the decrease in volumes and average prices, as well as the dropin costs for transportation and CO2 quotas.
Payments to capital providers increased mainly due tohigher interest expense, mainly as a result of rising interest
rates. In addition, there was an increase in dividends paid
compared to the previous year.

The organizational model and governance for sustainability
The organizational structure of the Enel Group is articulated in a matrix that considers:• Global Business Lines entrusted with the task of managing and developing assets, optimizing their performance and return on investment, in the various geographical areas where the Group is present. In accordance with safety, security and environmental policies
and regulations, they are tasked with maximizing theefficiency of managed processes and applying bestpractices worldwide by sharing with the Countries responsibility for EBITDA, cash flow and revenues;• Regions and Countries, which manage relations withinstitutional bodies and local regulatory authorities, aswell as electricity and gas distribution and sales activities, also providing support in terms of staff activities
and other services to the Business Lines. In addition,
they are tasked with promoting decarbonization anddriving the energy transition toward a low-carbon business model within their areas of responsibility.
Also supporting the business are:• the Global Service Function, which is responsible formanaging information and communication technology
activities, Group-wide procurement and the management of global customer actions. It also focuses on the
responsible adoption of measures to achieve sustainable development goals, specifically in supply chain
management and the creation of digital solutions to
support the development of technologies to enable theenergy transition and combat climate change;• the Holding Company Staff Functions (Administration,
Finance and Control, People and Organization, External
Relations, Legal, Corporate, Regulatory and Antitrust
Affairs, Audit, CEO Office, Security) which are responsible for managing governance processes at Group level.

The business model and value creation

17

Integrating sustainability into
Company strategy and processes
2-24
Enel has adopted a system of corporate governance thatis functional to the development of a business model andstrategy based on sharing value creation with all relevant
stakeholders, placing environmental, social and financial
sustainability at the center of the corporate culture.
In particular, Enel’s corporate governance system monitors
the integration of sustainability into corporate strategies
in relation to the different stages of: (i) the sustainability
context and megatrends analysis; (ii) materiality analysis
and stakeholder engagement; (iii) sustainability planning;

SUSTAINABLE
SUCCESS(iv) definition and implementation of specific actions to
support the sustainable business model; (v) monitoringsustainability performance, through the definition andadoption of specific ESG indicators throughout the value chain; (vi) sustainability disclosure, both to comply withspecific regulations and to respond to requests from various stakeholders (vii) ESG ratings and indices review.
Every stage of this process relies on constant listening
and dialogue with internal and external stakeholders andon respect for human rights as key elements in the pursuitof Sustainable Success.

ESG CONTEXTANALYSIS

MATERIALITYANALYSIS

ESG BENCHMARKSAND RATINGSPERFORMANCE
MANAGEMENT
AND REPORTINGSUSTAINABILITYSTRATEGY AND PLAN

ACTION AND
PROJECTS

Sustainability topics are integrated in all relevant corporate
decision-making processes, according to a system of functions and responsibilities that goes all the way back to Enel’s
main corporate governance bodies.
Responsibility for sustainability-related activities is entrusted to a specific business unit called “Sustainability”, located within the “Enel Grids and Innovability” Function, which
guides and coordinates the Group with regard to both sustainability management processes and activities in Countries, Business Lines and Holding Company Staff Functions.

18

Sustainability Report 2023

To support the central sustainability unit, there are also
dedicated structures in the Countries, Business Lines andStaff Functions.
Enel also takes into account the need to pursue Sustainable Success: (i) when drawing up the remuneration policy
for the Chief Executive Officer/General Manager and Key
Management Personnel, defining specific sustainability
objectives the achievement of which is linked to a significant component of the variable pay; (ii) with regard to theinternal control and risk management system, consisting1

2
Enel’s commitment
to sustainable development

Letter to stakeholders

3

Stakeholder engagement andmateriality analysisof the set of rules, procedures and organizational structures aimed at the effective and efficient identification,measurement, management and monitoring of the main
corporate risks.

4

Performance 2023

5

Appendix

For more information on the activities carried out
by the corporate bodies, please refer to the
Enel Report on Corporate Governance and Ownership
Structure and the Remuneration Report available at www.
enel.com, governance section, as well as the chapter on“Sound governance” in this document.

Socially responsible investors in Enel share capital
Sustainability represents a fundamental lever for creating economic and financial value. A consistent number ofinvestors have integrated ESG topics in their investment
portfolio (Socially Responsible Investors(2), “SRIs”) over the
past years in order to minimize financial risk and guarantee higher returns.
Enel is a Company listed since 1999 on the Euronext Milan stock exchange and managed by Borsa Italiana SpA,
whose corporate structure includes the main international
investment funds, insurance companies, pension funds
and ethical funds. Since 2014, socially responsible investment funds (active and passive) have almost tripled theirshare of Enel share capital(3), reaching 17.5% at the endof 2023, sharply up as compared to December 31, 2022
(14.9%). Their share of total institutional investors is also
increasing, reaching 29.8% at the end of 2023, compared
to 26.2% of the previous year. In absolute terms, 224 investors (vs 245 at the end of 2022) with investment funds
consider not only the Group’s financial performance but
also the environmental, social and governance practices
that Enel integrates into its business strategy and all activities along the entire value chain. Furthermore, again at theend of 2023, 42.8% of Enel’s capital was held by investors
who were signatories of the United Nations Principles for
Responsible Investment (UN PRI) (vs 42.1% at the end of2022).

GROWTH IN ESG INVESTORSSRI investors
Float
Share capital

no.
%
%

244

132

150

160

169

10.3

10.5

7.7

8.0

2015

2016

245

224

182
22.9
19.1

13.7

252

19.1

19.4

14.1

11.3
10.5

10.8

2018

2019

17.5
14.6

14.6

14.9

2020

2021

2022

8.6

2017

2023

(2) Socially Responsibly Investors (SRIs) were identified by an external provider on the basis of (i) an assessment of their Responsible Policy, (ii) active ownership,voting and engagement policy and (iii) whether the integration of environmental, social and governance (ESG) criteria was incorporated into their investment decision-making processes.
(3) At December 31, 2023, Enel SpA’s fully subscribed and paid-in share capital amounted to 10,166,679,946 euros, represented by the same number of ordinary shares with a par value of 1 euro each, and was unchanged compared to December 31, 2022.

The business model and value creation

19

Sustainability-Linked finance according to Enel
At Enel, sustainable finance constitutes a key lever for creating economic and financial value, and makes it possible
to raise capital, both public and private, by channeling it
towards sustainable investments and thus promoting theachievement of related development goals.

The new issues of Sustainability-Linked bonds, together
with all the sustainable financial operations structured
during the year, made it possible at the end of 2023 toreach a ratio between sustainable sources of borrowings
and Group total gross debt of 64%, with the aim of reaching around 70% in 2026.

Sustainability-Linked Financing Framework
In 2020, Enel was the first company in the world to include
in its funding contracts a mechanism that links the cost offinancing to the achievement of one or more sustainability
targets identified in the “Sustainability-Linked Financing
Framework”, a document that extends the Sustainability-Linked approach to all financial debt instruments. The“Sustainability-Linked Financing Framework” is updated
annually, consistently with the objectives defined in theGroup’s Strategic Plan.
In the latest version, published in January 2024, the Sustainability Performance Targets (“SPT”) of the five Key Performance Indicators (“KPIs”) included in the framework,
KPI

and which contribute to the achievement of SDG 7 (“Affordable and clean energy”) and SDG 13 (“Climate action”)
as well as the European Environmental Objective of Climate Change Mitigation, were updated:
1. Scope 1 GHG emissions Intensity relating to Power
Generation (gCO2eq/kWh),
2. Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh),
3. Absolute Scope 3 GHG emissions relating to Gas Retail(MtCO2eq),
4. Renewable Installed Capacity Percentage (%),
5. Proportion of Capex aligned to the EU taxonomy (%).

Actual values

Sustainability Performance Targets (SPT)

2023

2023

2024

2025

2026

2030

2040

KPI#1
Scope 1 GHG emissions Intensity relating
to Power Generation (gCO2eq/kWh)

160

148

140

130

125

72

0

KPI#2
Scope 1 and 3 GHG emissions Intensity relating
to Integrated Power (gCO2eq/kWh)

168

135

135

73

0

KPI#3
Absolute Scope 3 GHG emissions relating
to Gas Retail (MtCO2eq)

16.8

20.9

20.0

11.4

0

KPI#4
Renewable Installed Capacity Percentage (%)

68.2

73

74

80

100

KPI#5
Proportion of CAPEX aligned to the EU taxonomy (%)

84.8

>80%
(2023-2025)(1)>80%(2024-2026)(2)

65

69(1) SPT with cumulative observation period 2023-2025.
(2) SPT with cumulative observation period 2024-2026.

The performance of the KPIs in the table is periodically reviewed by an external auditor and published by Enel in the
Integrated Annual Report and the Sustainability Report.
Compared to the previous year, the Group managed toreduce direct and indirect GHG emissions by 26.3% along
the entire value chain. In addition, the Group reduced the
Scope 1 GHG emissions Intensity relating to Power Generation by more than 30.1%, from 229 gCO2eq/kWh in 2022
to 160 gCO2eq/kWh in 2023.
However, due to the unprecedented crisis faced by theEuropean energy system in 2022 and 2023, the Group’s

20

Sustainability Report 2023

emission reductions in 2023 were not sufficient to reach
the Scope 1 GHG emissions Intensity relating to Power
Generation set for 2023 and announced at the CapitalMarkets Day held in November 2020 to launch the 20212023 Strategic Plan. The intensity was above the target of
148 gCO2eq/kWh. In the absence of this effect, Enel would
have been able to achieve a level of emission intensity well
below the target of 148 gCO2eq/kWh.
As a result, the Group’s Sustainability-Linked instruments
setting the Scope 1 Power Generation intensity target of
148 gCO2eq/kWh for 2023 will be subject to an increase in
the relevant margin. Enel will meet its obligations in accor-

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

dance with the terms and conditions of the legal documentation for such Sustainability-Linked transactions.
Despite these unprecedented circumstances, the Group’s
emissions intensity in 2023 remained in line with the 1.5 °C
trajectory. In fact, the industry’s decarbonization approach
under the SBTi initiative set a maximum threshold of 246
gCO2eq/kWh for Enel for 2023, well above the actual figure.
Ultimately, Enel’s commitment to decarbonization remains
confirmed for the short and medium-to-long term, as set
out in the 2024-2026 Strategic Plan, which establishes a
new short-term target for 2026 of 125 gCO2eq/kWh.

For further information, please refer to theappendix of this document, in particular to the chapter“Sustainability-Linked Financing Report”.

4

Performance 2023

5

Appendix

In 2023, the Group, through its financial subsidiary, Enel Finance International NV (“EFI”), issued a 1,500 million euros
bond on the European market in February, combining, inthe 8-year tranche, a KPI linked to the EU Taxonomy with a
KPI linked to the UN SDGs. Conversely, the second trancheof the 20-year bond was linked to two KPIs associatedwith the Group’s strategy of complete decarbonization
through the reduction of direct and indirect greenhousegas emissions.
In November 2023, Enel SpA signed a three-year, 1,500
million euros Sustainability-Linked Revolving Credit Facility
linked to SDG 13.
In March 2023, Enel Finance International renewed the
8,000 million euros Commercial Paper program, linking
it to the KPI “Scope 1 GHG emissions Intensity relating toPower Generation (gCO2eq/kWh)” and the KPI “Proportionof Capex aligned to the EU taxonomy (%)”.

Enel’s role in the National Recovery PlanThe Enel Group plays a role as strategic partner on the Recovery Plan front, with the aim of driving sustainable, rapid
and effective growth through the proposal of projects inline with the missions of individual Recovery and Resilience
Plans at national level. In this regard, decrees were signed
in 2023 for the Smart Grids and Resilience projects in Italy, totaling 3,500 million euros. In addition to the Recovery, the Enel Group has submitted its project proposals toother opportunities offered at the European level, such as
the Innovation Fund, where the Grant Agreement for the
Catania Gigafactory was signed, IPCEI (Important Projectsof Common European Interest), where projects for the development of Green Hydrogen were submitted, and the
CEF, the Connecting Europe Facility, for the developmentof electric recharging infrastructures.

International Development Finance
The Group is leading an innovation process intended toaccelerate the mobilization of capital to support sustainable growth, through the use of Sustainability-Linked financial instruments.
More specifically, in 2023 the Group signed subsidizedloans for a total of 1,800 million euros, which include Sus-

tainability-Linked mechanisms related to SDG 13. Amongthe main transactions is the Sustainability-Linked borrowings totaling USD 800 million from Enel Finance America
and EKF (Danish export credit agency), the first Sustainability-Linked borrowings agreement for the latter.

The business model and value creation

21

The European taxonomy
Enel welcomes the development of the EU taxonomy
Regulation 2020/852, as it provides a standardized, science-based classification system to identify environmentally sustainable economic activities.
The EU taxonomy regulation acts as an important enabler
to promote sustainable investments and accelerate thedecarbonization of the European economy, while at thesame time creating reliability and transparency for investors and supporting companies in planning the Net Zerotransition.
Enel is committed to reporting on the implementationof Article 8 of the EU taxonomy regulation 2020/852.
Furthermore, Enel is committed on implementing the requirements and criteria in all delegated acts issued by theEuropean Commission by the time of publication of the
Sustainability Report. Specifically, this report has been adjusted based on the following regulations:• Delegated Regulation (EU) 2021/2139 of 4 June 2021
(Climate Delegated Act);• Delegated Regulation (EU) 2021/2178 of 6 July 2021
(Disclosures Delegated Act);• Delegated Regulation (EU) 2022/1214 of 9 March 2022
(Complementary Climate Delegated Act);• Delegated Regulation (EU) 2023/2485 of 27 June 2023•

amending the Climate Delegated Act;
Delegated Regulation (EU) 2023/2486 of 27 June 2023
(Environmental Delegated Act).

Going beyond the disclosure requirements of the taxonomy, Enel has included the Capex alignment percentage as
one of the key performance indicators of the Sustainability-Linked Financing Framework used to define the Company’s sustainable financial instruments for the second
consecutive year. With this important move forward, Enelreinforces the role of the taxonomy as a driver to promotesustainable investment decisions and show how sustainability can be fully integrated into the financial landscape.
Consequently, Enel confirmed its target on the proportionof Capex aligned to the EU taxonomy equal to or higher
than 80% for the period 2024-2026, according to the newStrategic Plan presented during the Capital Markets Day in
November 2023.

The implementation process and eligible activities
In 2020, a structured process for implementing the European taxonomy based on 5 phases has been defined:

1.

Identification ofeligible economic
activities

2.

Analysisof substantial
contribution

3.

Assessment of theprinciple of Do No
Significant Harm(DNSH) to otherenvironmental
objectives

Through this process, Enel has classified all economic activities along its value chain for their contribution to theclimate change mitigation objective, which is the most
relevant for the Group, according to the following three
categories: eligible aligned, eligible non-aligned, and22

Sustainability Report 2023

4.

Verification ofminimum social
safeguards

5.

Calculationof financial
metrics

non-eligible. However, it is important to note that activities
classified as eligible aligned from a climate change mitigation perspective also include adaptation solutions (mainlyin the design and construction phase of assets) and are
therefore also eligible aligned for this other objective.

1

EUROPEANTAXONOMY

Letter to stakeholders

Enel’s commitment
to sustainable development
2

EUROPEANTAXONOMY

Mapping inaccordancewith Climate
Delegated
Act and
Mapping inComplementary
accordanceDelegated
Actwith Climate
Delegated
Act andComplementary
Delegated Act

ELIGIBLE
3
Stakeholder engagement andNON-ALIGNEDALIGNED• Solar and wind
• Hydro (99.4%)• Geothermal
ALIGNED• RES storage• Manufacture ofsolar panels

4materiality analysis

and Colombia without
new connections between
a substation or grid anda generation plant withDistribution in Europe,
greenhouse gas intensity
Brazil, Argentina, Chile
over threshold ofand Colombia without
100
gCO2eq/kWh between
new connections
a substation or grid anda generation plant withgreenhouse gas intensity
Smart
Lighting, ofe-Bus,
over threshold
EnergyEfficiency,
100 gCO/kWh Home,
2eq

Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
Smart Lighting,e-Bus,
e-Mobility,
Battery
EnergyEnergy Efficiency, Home,
Storage5

Appendix

NON-ELIGIBLE

ELIGIBLE Hydro (0.6%)• Solar and wind
• Hydro (99.4%)• Geothermal• RES storage• ManufactureofDistribution
in Europe,solarArgentina,
panelsBrazil,Chile

Performance 2023

• Coal• Nuclear(1)• Fuel-oil and OCGT(2)NON-ELIGIBLE

NON-ALIGNED• Coal• Nuclear(1)• Fuel-oil and OCGT(2)Hydro (0.6%)• Gaseous fossil fuels(CCGT)

Trading• Gaseous fossil fuels• New connections(CCGT)

between a substation
or grid and a generation
plant with greenhousegas intensity overthresholdof• New
connections
100 gCOa2eq/kWhbetweensubstation• or
Distribution
in Peru
grid and a generation

Trading

Retail saleof poweror gas to
end users
Retail saleof poweror gas to
end users• Financial services, generalservices and otherunmeasured productclusters

plant with greenhousegas intensity overthreshold of
100 gCO2eq/kWh• Distribution in Peru

• Financial services, generalservices and otherunmeasured productclusters

Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
e-Mobility, Battery Energy
Storage(1)

The operation of the nuclear generation portfolio is not included among the eligible activities considered by the Complementary Delegated Act in thegeneration of electricity from nuclear power plants.
(2) Includes both fuel-oil and gas (OCGT) as it is not possible to divide the two types of fuel. Fuel-oil was considered to be the prevalent fossil fuel and istherefore non-eligible under the EU taxonomy regulation.
(1)

The operation of the nuclear generation portfolio is not included among the eligible activities considered by the Complementary Delegated Act in thegeneration of electricity from nuclear power plants.
(2) percentage
Includes both fuel-oil
and gas (OCGT)
as it isnot possibletaxonomy
to divide the two
types of fuel.activities
Fuel-oil was considered to be the prevalent fossil fuel and is2023
of alignment
to theEuropeanof businesstherefore by
non-eligible
under the contribution
EU taxonomy regulation.
made possible
their substantial
to the climate change mitigation objective, while respecting the principleof Do No Significant Harm (DNSH) to other environmental objectives and the minimum social safeguards
59.7%
ORDINARY GROSS OPERATINGMARGIN (EBITDA)
Year 2022: 56.7%

The EBITDA percentage of eligible taxonomy-aligned business activities increases in 2023 mainly thanks to anincrease in the EBITDA of renewable energy production and distribution activities in absolute terms. At the sametime, there is a decrease in the EBITDA of the eligible non-aligned activities due to the thermoelectric power
generation business from combined cycles, which produced lower energy volumes in 2023 compared to 2022.

33.8%
OF TURNOVER
Year 2022: 21.4%

In 2023, revenues decreased in absolute terms by 44.8 billion euros compared to 2022. The change is mainly
attributable to the lower volumes of electricity produced, the lower quantities of energy sold in the wholesale
and retail markets, as well as the decrease in average selling prices of commodities, thus impacting non-eligible and non-aligned activities.
At the same time, an increase in revenues related to the production of energy from renewable sources was observed in 2023, resulting in an increase in absolute terms of revenues in aligned activities from 30.6 billion euros
in 2022 to 33.1 billion euros in 2023. These phenomena contributed to the increase in the percentage weight ofrevenues from EU Taxonomy-aligned activities by 12% year-on-year.

84.8%
OF CAPITAL EXPENDITURE(CAPEX)Year 2022: 81.9%

The increase recorded in 2023 is mainly due to higher investments in energy storage systems through BESS
(Battery Energy Storage Systems) and a reduction in investments in non-eligible or non-aligned thermoelectric technologies.
The actual 2023 Capex for eligible aligned assets is 4.0% higher than the Capex planned for 2023 in theStrategic Plan 2023-2025 for the same assets. This change is mainly due to higher investments in absoluteterms in eligible aligned renewable and distribution activities than planned (approximately 1.9 billion euros).

The percentage of Opex of eligible taxonomy-aligned business activities increases in 2023 compared to
68.4%
OF OPERATING EXPENDITURE (OPEX) 2022 mainly due to higher maintenance costs incurred in photovoltaic renewable energy production andtaxonomy-aligned distribution activities.
Year 2022: 66.9%

In the chapter “European Taxonomy”, in the appendix to
the Sustainability Report, details of the steps in the implementation process and the results for each KPI (EBITDA,

turnover, Capex and Opex) and specific tables on nuclear and fossil gas activities as required by the regulations
above are provided.

The business model and value creation

23

Sustainability ratings, rankings and benchmarks
ESG analysts and rating agencies continuously monitor
Enel’s sustainability performance, by different methods, in
relation to environmental, social and governance issues.
ESG ratings are also a strategic tool to support investors
in assessing sustainable business models and identifying
risks and opportunities linked to sustainability in their investment portfolio, supporting the development of active
and passive sustainable investment strategies.
Enel is committed to constantly managing and reporting all
ESG aspects, and considers rating agencies assessments
as an important opportunity to improve its performance interms of sustainability and to devise specific action plans
with the involvement of the various Company units andBusiness Lines.

Consequently, Enel maintains a high performance in themain ESG indexes, ratings and benchmarks, reachingleadership positions in most cases.
Enel was also evaluated in 2023 in the Net Zero Company Benchmark of Climate Action 100+, and ranked in the
top 3 on a global level and as a best performer at Electric
Utilities sector level, in the Electric Utilities Benchmark of
the World Benchmarking Alliance (WBA), ranking third in
the sector and in the Renewable Energy & Human Rights
benchmark of Business Human Rights Resource Center(BHRRC), ranking second place among electric utilities.

INCLUSION IN THE MAIN ESG INDEXES AND RANKINGS IN 2023

24

Inclusion in the
Bloomberg
Gender-Equality
Index for the fourthyear running

JANUARY
2023

Industry Leader in the
FTSE4Good Index

Reconfirmation of
the prime status
in the ESG ratingof ISS ESG

Among the world
leaders in the DJSIWorld and DJSI Europe

JUNE
2023

NOVEMBER
2023

DECEMBER
2023

JUNE
2023

SEPTEMBER
2023

DECEMBER
2023

Inclusion in the
MSCI ESG Leaders
indices for the fourthyear running

Among the world’s
top utilities in the
Refinitiv Diversity &Inclusion index

Confirmation in theEuronext Vigeo
Eiris 120 index

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

MAIN ESG RATINGS(1)RATINGMSCI
Sustainalytics ESG Risk Rating
S&P ESG Scores

AAA
20.8

(Medium risk)

84

RANKINGTop 10 / 140
utilities

31 / 267

electric utilities

10 / 267

electric utilities

SECTOR AVERAGE

SCALE(LOW | HIGH)

BBB

CCC | AAA

31.6

100 | 035

0 | 100

A- (climate)
B (water)-B
B

D- | AISS ESG Score

B

-

C

C- | A+

Bloomberg ESG

80

-

-

0 | 100

Refinitiv ESG Rating91-

0 | 100

FTSE Russell ESG Rating

4.9

-

2.7

0|5

Vigeo Eiris ESG Rating

77

-

53

0 | 100

CDP(1)

2 / 312electric utilities

Scores as of March 31, 2024.

The business model and value creation

25

STAKEHOLDERENGAGEMENT AND
MATERIALITY ANALYSIS
2-29

3-1

3-2

3-3

Stakeholder engagement is a key lever to create sharedvalue in the long term and to pursue a just transition.
In order to capture stakeholder needs and expectations,
Enel promotes a continuous, active and open dialog with
its stakeholders, through numerous listening initiatives led
by the different corporate functions with different roles,
levels of engagement and responsibility.
Stakeholders are grouped into categories, classified into
three levels. Specifically, the first level includes:• Business community;• Customers;• Financial community;• Institutions;• Civil society and local and global communities;• Media;• Enel people;• Suppliers and contractors.

In the chapter “Stakeholder engagement and materiality
analysis”, the respective degree of relevance, the type andinitiatives of engagement used, the priority issues and theCompany’s response methods are reported for each category of stakeholders, internal and external.
The stakeholder engagement process, carried out in linewith the Accountability AA1000 Stakeholder Engagement
Standard (AA1000SES) and through a dedicated IT system(“e-mia®: Engagement – materiality & impact analysis”),
supports the process of identifying material topics (theso-called “Materiality analysis”).

Material topics
2-29

3-1

3-2

3-3

By engaging the various categories of internal and external stakeholders, the materiality analysis identifies thematerial topics for Enel, i.e., the environmental, social andgovernance topics related to the most significant impacts,
risks and opportunities for the Group. The results of thisanalysis guide the definition of objectives to be included insustainability planning and ensure quality in relations withall Group stakeholders, while also supporting primary users in their decision-making processes.
The Enel Group’s materiality analysis was developed inline with the GRI 2021 Universal Standard, the Value Reporting Foundation – SASB standard, the SDG Compass,which supports companies in adapting their strategies tothe UN SDGs. In recent years, the materiality analysis has
been strengthened by taking into account the ongoingregulatory developments at the international level andthe requirements introduced at the European level by the26

Sustainability Report 2023

Corporate Sustainability Reporting Directive (CSRD), theEuropean Sustainability Reporting Standards (ESRS) andthe current proposed guidelines provided by the European
Financial Reporting Advisory Group (EFRAG). Regulatory developments have introduced the double materiality perspective, which comprises two dimensions:• impact materiality: which identifies material topics
from the perspective of the impacts generated by theCompany, i.e., the effects the organization has or could
have on the economy, the environment and people;• financial materiality: which identifies material topics
from the perspective of risks and opportunities that
affect or could affect a company’s financial position, financial performance and cash flows, access to financeor cost of capital over the short, medium or long term.
Both dimensions include assessments from a humanrights standpoint.

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

MATERIAL TOPICS (LEVEL I-II) AND
ESG PRIORITY TOPICS
FOR STAKEHOLDERS
MATERIAL TOPIC (LEVEL I-II)

ENVIRONMENTAL

CLIMATECHANGE• Governance and advocacy• Reducing GHG emissions• Governance and advocacy

emissions (Scope 1)of services and products tocustomers

GOVERNANCEPRESERVATION OF
BIODIVERSITY ANDECOSYSTEMS

for nature• Protecting biodiversity• Mitigation of impacts

for climate• Soil management

AIR, WATER AND SOILQUALITY• Pollution reduction

on natural heritage• Adapting to climate change
CIRCULARECONOMY

WASTE• Non-hazardous waste• Hazardous waste

WATER RESOURCES
MANAGEMENT• Responsible use of water

BUSINESS CONDUCTAND ETHICS• Tax transparency• Legal disputes
CUSTOMER
CENTRICITY

SOCIAL

GOVERNANCE AND
ADVOCACY FOR
NATURE AND CLIMATE• Mitigation: reducing direct GHG• New life cycles• Solutions dedicated to customer
needs• Quality of customer relations

DIGITAL
TRANSFORMATION
CROSS

1

• Cyber security

ENGAGING LOCALAND GLOBALCOMMUNITIES• Listening to communities• Supporting the social andeconomic development ofcommunities

ECONOMIC VALUECREATION• Capital balance andsoundness• Long-term value creation

HEALTH AND
SAFETY• Worker health• Worker health and safety• Health and safety of workers
of contractors operating on
Enel sites

SUSTAINABLE SUPPLY
CHAIN• Contract execution• Qualification of suppliers andcontracting firms• Tendering of suppliers andcontracting firms

ELECTRIFICATIONOF USES• E-mobility

RESILIENT
GRIDS• Operational managementof grids

strategy• Long-term value distribution
strategy

ESG priority topics for stakeholders

Stakeholder engagement and materiality analysis thenenable the definition of objectives to be included in sustainability planning and support primary users in their decision-making processes, thereby ensuring the quality of
the Group’s stakeholder relations.

For further details, see the “Stakeholder engagement
and materiality analysis” chapter of this document.

Stakeholder engagement and materiality analysis

27

SUSTAINABILITY
PLAN
The Enel Group aims to increase the Company’s flexibility
and competitiveness through a greater focus on resources, better allocation of investments, simplification of processes and organization, and a business model focusedon sustainability and built to seize the opportunities of anever-changing environment. Specifically, the 2024-2026
strategy is based on three pillars:• Profitability, flexibility and resilience, through highly selective capital allocation, aimed at optimizing theGroup’s risk/return profile;• Efficiency and effectiveness as drivers of the Group’s
operations;• Financial and environmental sustainability, to pursue
value creation in addressing the challenges of climatechange.

In synergy with the strategy, and taking into account theresults of stakeholder engagement and materiality analysis, Enel defines the Sustainability Plan, which is broken
down into specific short-, medium- and long-term objectives, in order to make the Group’s commitment transparent and verifiable and to contribute to the achievementof the United Nations 17 Sustainable Development Goals.
Every year, these objectives are updated in accordancewith a process of alignment with strategic guidelines, theresults achieved and best practices in order to increasingly integrate sustainability along the entire value chain(4).

Sustainability Plan

Sustainability PlanSTAKEHOLDERS

NATUREZERO EMISSIONSAMBITION

HUMAN
RIGHTSGROWTHACCELERATORS(4) The targets are based on the geographic scope and business model to date.

28

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

At the heart of Enel’s commitment is the zero emissions
ambition by 2040, according to a roadmap that is in linewith the Paris objectives to limit the average global temperature increase to below 1.5 °C compared to pre-industrial values, and with targets certified by the Science
Based Targets initiative (SBTi), which cover both directemissions generated by the Group’s plants and indirectemissions produced upstream from suppliers and downstream from customers.
To this end, the Group has planned to exit coal-fired generation by 2027(5), subject to approval by the competentauthorities, achieving 100% renewable generation by
2040, thanks also to the exit from thermal generation by
the same year. In addition, the exit from gas sales to end
customers by 2040 has been confirmed, preserving theneeds of customers in the transition phase where gas
will still be necessary and, at the same time, pushing forelectrification of uses and 100% sales of electricity fromrenewable sources by 2040.
The investment plan is in line with the Net Zero targets
for 2040, with:• more than 80% of Capex aligned to the EU Taxonomy
regulation in the three-year period 2024-2026;• more than 90% of Gross Capex 2024-2026 aligned to
the UN Sustainable Development Goals (SDGs), in particular SDGs 7 (“Affordable and clean energy”), 9 (“Industry, innovation and infrastructure”) and 11 (“Sustainable cities and communities”), while contributing
to SDG 13 (“Climate action”). For additional details,
please refer to the chapter “Business drivers”.
Furthermore, Enel aims to achieve a sustainable debt ratio of around 70% of the Group’s total debt in 2026.
The Group leads the energy transition through decarbonization of power generation, digitalization of distribution networks, and electrification of uses. These represent an opportunity both in terms of value creation andfaster achievement of the Paris Agreement objectives aswell as the UN-defined Sustainable Development Goals(hereafter SDGs) in 2030 Agenda.
Enel promotes a just transition, in line with the principles
set out in the International Labour Organization (ILO) Just
Transition Guidelines, based on constant dialogue with its
stakeholders, Enel people, suppliers, communities andcustomers. In addition to advancing action against climate change, a well-managed transition can help mitigate
the associated socio-economic impacts while promoting
growth and reducing inequalities.

4

Performance 2023

5

Appendix

ZERO EMISSIONSAMBITION

Reduction in Scope 1 GHG emissions
intensity relating to Power Generation

125 gCO2eq/kWh in 2026 (-66% vs 2017)
72 gCO2eq/kWh in 2030 (-80% vs 2017)
0 gCO2eq/kWh in 2040 (-100% vs 2017)

Reduction in Scope 1 and 3 GHG
emissions intensity relating to Integrated
Power

135 gCO2eq/kWh in 2026 (-59% vs 2017)
73 gCO2eq/kWh in 2030 (-78% vs 2017)
0 gCO2eq/kWh in 2040 (-100% vs 2017)

Reduction in absolute Scope 3 GHG
emissions relating to Gas Retail20.0 MtCO

2eq

in 2026 (-21% vs 2017)11.4 MtCO2eq in 2030 (-55% vs 2017)

0 MtCO2eq

in 2040 (-100% vs 2017)>80% of investments (Capex) plannedfor 2024-2026 aligned to the European
Taxonomy>90% of Gross Capex foreseen in the 20242026 Plan aligned to the 4 UN
SDGs (7, 9, 11, 13)~70% sustainable sources of finance in 2026
(sustainable debt/total gross debt)(5) As far as the conversion of coal-fired plants is concerned, the Group will evaluate the best available technologies, based on the needs indicated by the
distribution network operators.

Sustainability Plan

29

In 2023 Enel was among the first companies to join the
Forward Faster Campaign, the UN Global Compact initiative that requires the private sector to commit to more
ambitious targets for achieving the SDGs in five priority areas. Specifically, Enel has made commitments on (i)Climate Action, which includes targets linked to reducing
emissions in line with the 1.5 °C pathway and to contributing to a just transition (see the chapter “Zero emissions
ambition and just transition”), and on (ii) Finance and Investments.
The Group puts its people at the center by leveraging theirwell-being, motivation, sense of responsibility, active participation and the entrepreneurial approach of individuals.
It promotes lifelong learning, through programs to improveexisting skills in order to access more advanced career
paths (upskilling) and to learn new skills (reskilling), whileat the same time paying attention to the people involvedin the decarbonization process. It also commits to build an
inclusive working environment, one capable of enhancing
diversity and individual talent, in which everyone can recognize themselves, regardless of race, ethnicity, religion,
gender, age, sexual orientation and ability.
Suppliers are indispensable partners for Enel to progresssustainably and realize the transformation process of theenergy system, which requires change and developmentin the way work is carried out and goods and services areprovided. Suppliers are required not only to guarantee thenecessary quality standards and operate in compliancewith applicable laws and regulations, but also to commit
to adopting best practices in terms of governance, ethics, human rights, health, safety and the environment, inline with the Group’s strategy. Enel works with suppliers
to maximize the economic, productive, social and environmental benefits of the transition and strives concretely
to create sustainable, innovative and circular processes tomitigate the impact generated by their activities.
Responsible community relations are an enabling factor
for all sustainability activities. A deep knowledge of thecontext in which the Group operates allows it to integratesustainability into its business in order to create synergies
between the Company’s needs and those of the local area
along the value chain, through the adoption of models
that increase and foster collaboration with communities,
generating efficiencies and positive impacts from a social,economic and environmental perspective.
Customers are an active part of the energy transition, including through increased awareness of their own consumption, efficiency measures, and the electrification anddecarbonization options available to them. Enel aims to
improve their experience by focusing on caring and listening, to better understand what they need with the aim of30

Sustainability Report 2023

ENEL PEOPLE

33.5% women managers and middle
managers in 2026

>45.0 average training hours per capita
in 2026

40.0% of training hours dedicated to
upskilling and reskilling in 2026

SUPPLIERS

68% value of supply contracts covered

by Carbon Footprint certifications (EPD, ISO
CFP) in 2026

COMMUNITIES

6.5 million beneficiaries of projects forcommunities in the period 2024-2030

CUSTOMERS

170 commercial claims (no./10k
customers) in 2024

18 new inclusive products and services
in the period 2024-2026

increasing loyalty, taking full advantage of the potential of
digital technology for effective interaction. Increased customer loyalty necessarily passes through a service that isof high quality and, above all, customized to enhance thecharacteristics of the territory in which the Group operates and offer solutions that are more responsive to local
needs.

1

2
Enel’s commitment
to sustainable development

Letter to stakeholders

3

Stakeholder engagement andmateriality analysis

The fight against climate change cannot be separated
from a commitment to the conservation of natural capital, which is increasingly impacted by the consequencesthat climate change is having on biodiversity and ecosystems. This is why Enel continues its commitment to promoting the protection of natural capital, through setting
specific targets for reducing impacts, restoring habitats
impacted by its activities and sharing the opportunities
and benefits associated with ecosystem services with thecommunities with which it interacts.

4

Performance 2023

5

Appendix

NATURE
Biodiversity No Net Loss:• implementation on selected projects ofhigh biodiversity areas starting from 2025;• implementation for new infrastructuresby 2030.
No Net Deforestation by 2030

In each of its activities, Enel is committed to respecting
human rights through an integrated and transversal approach that takes into account the needs of stakeholders
along the entire value chain.
Protecting the health and safety of the Group’s people
and suppliers is a shared responsibility at every level andrepresents a constant endeavor to avoid accidents andraise the level of attention in every situation.

No Go in areas designated as UNESCOWorld Heritage Natural Sites(6)OCCUPATIONAL HEALTHAND SAFETY

In this context, innovation, digitalization and the circular
economy accelerate the achievement of Enel’s sustainablestrategy, embracing and transversally enhancing all strategic themes.
Underpinning all of the Group’s activities is a solid governance structure capable of guaranteeing stakeholders
the application of a set of principles, comprising transparency, fairness and integrity, that support Enel’s businessmodel and its application on a day-to-day basis.

<0.41 in 2024

Injury frequency rate with morethan 3 days of absence from work
(combined employees and contractor
companies)(7)

LEGEND
Target included in the shortor long-term remuneration
plan of Top Management

In the 2023 Sustainability Report, an overview of all the objectives in the 2024-2026 Sustainability Plan is provided at the
beginning of each chapter, in the so-called dashboards. Herebelow an example: the dashboard header represents the link
between the material topics, the issues in the Sustainability
Plan and the United Nations Sustainable Development Goals,

DOUBLE
MATERIALITY
MATERIAL TOPICS:• Climate change•G overnance and advocacy fornature and climate

Target included in
Sustainability-Linked
financial instruments

to which the objectives related to the specific issue contribute directly. Each dashboard then sets out in detail the 2023
results related to the targets of the previous 2023-2025 Sustainability Plan, the resulting progress, and the targets of the2024-2026 Sustainability Plan, which may be redefined, added to, or outdated with respect to the previous Plan.

SUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

ZERO EMISSIONSAMBITION(6) Commitment to new generation infrastructure.
(7) This index is calculated as a ratio of the number of injuries (with more than 3 days of absence) to hours worked (in millions).

Sustainability Plan

31

32

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

COMPANY VIEW

3.
STAKEHOLDERENGAGEMENT
AND MATERIALITYANALYSIS● Context analysis
to identify and analyze the main current and future ESG
megatrends, to limit risks and impacts, and take fulladvantage of the relevant opportunities.
● Engagement of internal and external stakeholders tounderstand their priorities
in order to always be open to listening to the individuals orinterest groups that are influenced or could be influenced by
the organization’s activities.
● Identification of ESG material topics by“double materiality”
to identify environmental, social and governance topics thatare significant from an impact materiality perspective, afinancial materiality perspective or both.

33

STAKEHOLDERENGAGEMENT
AND MATERIALITYANALYSIS
Framework
2-29

3-1

3-3

Stakeholder engagement is a key lever to create sharedvalue in the long term and to pursue a just, responsible
and sustainable transition.
In order to grasp stakeholder needs and expectations, Enelpromotes a continuous, active and open dialogue with its
stakeholders, through numerous listening initiatives led by
the different corporate functions with different roles, levelsof engagement and responsibility.
By engaging the various categories of internal and external stakeholders, the materiality analysis identifies thematerial topics for Enel, i.e., the environmental, social andgovernance topics related to the most significant impacts,
risks and opportunities for the Group.
In recent years, the materiality analysis has been strengthened by taking into account the ongoing regulatory developments at the international level and the requirements
introduced at the European level by the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and the current

34

Sustainability Report 2023

proposed guidelines provided by the European Financial
Reporting Advisory Group (EFRAG). Regulatory developments have introduced the double materiality perspective,
which comprises two dimensions:• impact materiality: which identifies material topics
from the perspective of the impacts generated by theCompany, i.e., the effects the organization has or could
have on the economy, the environment and people;• financial materiality: which identifies material topics
from the perspective of risks and opportunities that
affect or could affect a company’s financial position, financial performance and cash flows, access to financeor cost of capital over the short, medium or long term.
Both dimensions include assessments from a humanrights standpoint.
Stakeholder engagement and materiality analysis thenenable the definition of objectives to be included in sustainability planning and support primary users in their decision-making processes, thereby ensuring the quality of
the relations with the Group’s stakeholders.

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

MAIN ESG
F THE
ME
GA
IS O
S
MAIN ES
E
H
Y
T
TR
GT
ON
AL
O
S
I
N
PIC END
S
A
LY
S
S
A
ENEL
FINANCIALANPEOPLECOMMUNITY

103

35

INITIAT
IVE
S•
I

75

ES

MEDIA

ITI

A TI

61

CUSTOMERS

IN

TE

RN

AL

AND

IV E S•IA T

108

V E S•IN ITI A T

IV

•
ES

INSTITUTIONS

73

5

Appendix• Identification of
stakeholders• Assignment of relevance tostakeholders

IT

TI V

•IN

CIVIL SOCIETY AND
LOCAL AND GLOBALCOMMUNITIESIN•I N I T I A

41

PRIORITY ESGTOPICS

Performance 2023

• Identification of the topics
and of ESG megatrends

151

TIVES
TIA
INI

SUPPLIERS

4

UNDERSTANDING
THE CONTEXTES•INITIATIV
TIV
ES
TIA
NI

• Assignment of priority,
satisfaction and impact totopics for stakeholders

BUSINESSCOMMUNITY

EXTERNAL STAK

EH

D
OL

ER

S

VI

T

Y

E R I A LICPOM A N YAT

DOUBLE
MATERIALITYP A CT• Evaluation of the IROs (Impacts,
Risks and Opportunities)
by internal and external
stakeholders through theperspective of:

T

Y

IM

M

M

AT

D P O PL
E

L

I

E

A

N

NA NC I A

RONME
NT

EN

IDENTIFICATION OF
potentially material
IMPACTS, RISKS ANDOPPORTUNITIES (IROs)

F

1

E R I A LI

• IMPACT MATERIALITY• FINANCIAL MATERIALITY
IN

TE

RN

AL

AND

E XTE RNAL S T A K

EH

D
OL

ER

S

MATERIAL TOPICSENGAGEMENT INITIATIVES#An engagement initiative (focus group, survey, textual analysis, etc.) may involve several categories of stakeholders.

Stakeholder engagement and materiality analysis

35

Reference standard and governance
The stakeholder engagement process is carried out in linewith the provisions of the main reference standard: Accountability AA1000 Stakeholder Engagement Standard(AA1000SES).
The Enel Group’s materiality analysis was developed taking
into account the GRI 2021 Universal Standard, the Value
Reporting Foundation – SASB standard, the SDG Compass, which supports companies in adapting their strategies to the UN SDGs, as well as the EFRAG guidelines currently available.
Stakeholder engagement activities to investigate the priorities on ESG topics from a stakeholder perspective andthe double materiality analysis are led by the Grids andInnovability – Sustainability Function, which manages andcoordinates the process for the Group.
The activities of collecting, aggregating and processing
data and information relating to the double materiality
analysis and the stakeholder/expert listening initiatives aremanaged through a dedicated computer system (“e-mia®:
Engagement – materiality & impact analysis”), which also
allows the best stakeholder engagement and monitoring
practices to be shared within the Group in line with theCompany’s organizational model. The results, which are36

Sustainability Report 2023

updated annually, are presented at both Group and company level, Business Line/Function and site (understood assite under construction/operational), as well as for the different stakeholder categories. Every two years, an analysis
is carried out with a view to possibly reviewing the ESG
topics and categories of stakeholders so as to take into
account any significant changes in the internal and external context of the Company.
The materiality analysis and the results are subject to specific examination by the Corporate Governance and Sustainability Committee, set up within the Board of Directors,
when examining the guidelines of the Sustainability Plan.
Furthermore, the Corporate Governance and Sustainability Committee and the Control and Risk Committee issue
prior opinions on the Sustainability Report, which includes
the materiality analysis, and submit them to the Board of
Directors’ meeting called to approve the Report.
The analysis of the process related to the definition of thematerial topics published in the Sustainability Report, as
well as the prioritization of the material topics according
to the stakeholders’ viewpoint, are included in the overall
compliance opinion that the Auditing Firm provides regarding Legislative Decree 254 and GRI standards.

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Stakeholder engagement
E M A IN E S G M E G
F TH
ATR
O
S
EN
SI
TION OF RESO
A
V
Y
R
DS (
U
RC
SE
AL
1)
N
E
M
N
E
A
IN ES
S
A
CO IS ON TH
GT
S
O
Y
PIC
AL
S
AN
FINANCIALENELCOMMUNITY

103

35

IO
PR

ICS

TA

TE

GI

CH

DI

AN

G

E

PEOPLEMA

INITIA
TIV
ES

S

A TI

VES

CUSTOMERS

ERN

V ES

108

IN

VE

IT I

61

INT

CIVIL SOCIETY
AND LOCAL AND
GLOBALCOMMUNITIES

A TI

A TI
IN

MEDIA

IT I

• Climate change• Health and safety• Water resourcesmanagement• Electrification of uses
• Resilient grids

LUTION151

I N I TI

41

EVO

SUPPLIERS

VES
ATI
ITI
IN

75

LR

INITI
VES
ATI
ATI
ITI
ESG TOP VES
Y
T
I
IN
R

CLI

1

AL AN

I N ITI

A TI

VE

S
INSTITUTIONS

73

BUSINESSCOMMUNITY

D EXTE RNAL ST

OL
AKEH

DER

S

(1) The analysis of megatrends involved around 100 experts representative of the media, academia, NGOs, etc.

ENGAGEMENT INITIATIVES#An engagement initiative (focus group, survey, textual analysis, etc.) may involve several categories of stakeholders.

In order to evaluate the economic, social and environmental challenges, identify the risks, limit their impacts andtake full advantage of the relative opportunities, an analysis of the main current and future ESG megatrends was
carried out.
Within today’s complex scenario, new generation andconsumption models are emerging, dictated by ongoing
technological and demographic changes, as well as by
new economic and geopolitical balances.
Based on the main publications within the electric utilities

sector, an analysis of the sustainability context was carried out, which led to the identification of 13 ESG megatrends (climate change, digital revolution, resource conservation, new economic power, inclusion and equality,
urbanization, new governance models, prosperity, newbusiness models, demographic change, future work, newmobility, and customer centricity). In addition to influencing the present, these phenomena will also be reflectedin the economic, social and environmental dimensionsof sustainable development in the future and are often

Stakeholder engagement and materiality analysis

37

mutually conditioned and act in combination, reinforcing
their individual impact. The technological revolution anddigitalization have in several cases accentuated income
disparity and the consequent increase in inequalities. Climate change is contributing to displacement of populations from rural to urban areas, and therefore to demographic changes in countries. Conserving resources entails the need to use and adopt technologies with a lower
environmental impact.
With the aim of understanding the relevance of the 13 ESG
megatrends and targeting the identification of potentially material impacts, risks and opportunities, the Company
initiated an engagement activity with stakeholders and ex-

ternal experts, who were asked to assess the relevance – interms of impact – of each ESG megatrend in three different time horizons: the present, 2030 and 2050.
This activity represented a further opportunity for Enel tobuild a resilient long-term sustainable strategy, one thattakes into account current trends but also future scenarios and challenges to which the Company will need to respond.
The results of the analysis confirm that the most significant ESG megatrends relate to:• climate change;• conservation of resources;• digital transformation.

Identification of the topics
2-29

3-1

Updating the main ESG megatrends that have emerged
has made it possible to align the list of ESG 2023 topics
with the changed environment in which the Company operates.
The revision of the list of ESG topics, which takes place atintervals of no more than every two years, was carried out
not only by taking into consideration the newly emerged
ESG megatrends, but also by considering other factors,
such as:• the topics of greatest interest to sustainability rating
agencies;• sector benchmarking studies;• sustainability reporting standards (including those de•fined by EFRAG, e.g., ESRS 1, paragraph RA 16);
the strategic guidance of the Company as well as input
from experts inside and outside the organization.

As a result of the revision, the ESG 2023 topics have beengrouped into four categories: environmental topics, social
topics, governance topics and cross-cutting ESG topics,
and divided into three levels (1st Level, 2nd Level, 3rd Level). In addition, the main changes basically concern the
integration of new topics related to the environment andclimate change.

Identification and engagement of stakeholders
2-29
The stakeholders involved in the 2023 materiality analysis
represent the individuals or interest groups that are affected or could be affected by the organization’s activities,
and who are regularly involved through numerous listening
initiatives in order to capture their expectations and identify potential and future impacts.
Consistently with the review conducted on the ESG topics
tree, the stakeholder tree is also periodically reviewed so as
to keep it in line with the context in which Enel operates.
During the 2023 analysis, also thanks to the support of thevarious business units responsible for relations with the various stakeholders with which the Company interacts, the updating of the list was completed without substantial changes.
The stakeholders are grouped into categories, classified

(1)

38

on three levels, in line with the structure of the topics analyzed. The 1st Level stakeholder categories are the following(1):• Business community;• Customers;• Financial community;• Institutions;• Civil society and local and global communities;• Media;• Enel people;• Suppliers and contractors.

Please refer to the table in section “Assignment of priority to the topics by external stakeholders”, which shows the stakeholder categories with their respective degree of relevance.

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Assignment of relevance to stakeholders
2-29
The process of assigning relevance to stakeholders, whichaims to identify the main ones, involves the engagementof the business units responsible for stakeholder relations,which assess each category according to its relevance totheir business, as required by the reference standards. In

2023, Company Management at Business Line and Country level was engaged in a specific questionnaire, in which
they were asked to assess the relevance of the different
categories above based on to the following parameters:

DEPENDENCE

Importance of the relationship for the stakeholder, indicating groups or individuals who directly or indirectly depend on
the activities, products or services and associated services, or on which the organization depends in order to operate

INFLUENCE

Importance of the relationship for the Company, indicating groups or individuals that may have an impact on theorganization or on a stakeholder for strategic or operational decision-making

TENSION

Temporal dimension of the relationship, indicating groups or individuals who require the immediate attention of theorganization on broader financial, economic, social or environmental topics

In particular, the analysis carried out at Group level did notreveal any significant changes from the previous year. The
relevance of the stakeholders “Enel people” and “Custom-ers”, as strategic players at the center of the sustainability
strategy, is therefore confirmed.

Assignment of priority to the topics by external stakeholders
2-29

3-1

3-2

3-3

Once the topics and stakeholder categories have been
identified, weighted by their respective relevance value,
stakeholders are involved in the process of assessing ESG
topics on which they are asked to rate in terms of priority, satisfaction and the impact that Enel generates or can
generate on the economy, the environment and people.
The analysis of the priority assigned by the stakeholders
to the topics was carried out through the implementationof over 450 engagement initiatives (surveys, focus groups,
interviews, document analysis, etc.) of internal and external
stakeholders relevant to the Group, involving a total of 20
countries. Less than 1% of the assessments were carriedout indirectly, through interviews with the business units
responsible for the relationship with the reference stakeholder, demonstrating that the entire analysis process isintended to be as objective as possible. The engagement
initiatives used in the materiality analysis are part of thevarious engagement initiatives carried out during the yearby the Group’s various units. These initiatives include: customer satisfaction surveys; questionnaires from sustainability rating agencies; customer complaints; relations
with analysts and investors, representative and trade asso-

ciations; institutional relations at national and local levels,
as well as with trade unions; media monitoring and opinion
polls. In some cases, where necessary, ad hoc materiality
analysis initiatives were implemented, including an online
questionnaire for suppliers or focus groups aimed at specific categories of stakeholders.
In 2023, the main 1st Level priorities(2) assigned by all internal and external stakeholders for the Group were:• Climate change;• Health and safety;• Water resources management;• Electrification of uses;• Resilient grids.
These priorities support the process of identifying theCompany’s impacts, risks and opportunities (for the connection of priority topics to material topics, see the impacts, risks and opportunities – IRO – table).
The following table shows, for each internal and external stakeholder category identified at 1st Level, the respective degreeof relevance, the type and engagement initiatives used, thepriority topics and the Company’s response methods.

(2) For more details on the topic Climate change see the chapter “Zero emissions ambition and just transition”; on the topic Health and safety see the chapter“Health and safety of people”; on the topic Water resources management see the chapter “Roadmap towards natural capital conservation”; on the topic
Electrification of uses see the chapters “Customer centricity” and “Business drivers”; on the topic Resilient grids see the chapter “Business drivers”.

Stakeholder engagement and materiality analysis

39

RELEVANCERELEVANCECATEGORY OF
1ST LEVELSTAKEHOLDERSPARAMETERS:
Dependence importance of therelationship for the stakeholder

TYPE OFENGAGEMENT

Qualitative
assessment

NO.(1)

63

ENEL
PEOPLE

NO.(1)

Focus group38

One-on-one interview

7

Index analysis

11

Survey with focus on
ESG topics

3

Open response
questionnaire

4

SUSTAINABILITY
PLAN• Health andsafety• Occupational
health and safety• Businessconduct andethics• Soundgovernance• Innovation• Innovation

39

Textualanalysis1

Textual analysis basedon external sources

1

Focus group13

One-on-one interview

3

Index analysis

6

Survey with focus on
ESG topics

11• Customer
centricity• Customers

Document analysis

6• Health andsafety• Occupational
health and safety

Open response
questionnaire8• Businessconduct
and ethics• Soundgovernance

11

3

47

Surveys11

Surveys sent directlyby the e-mia® system
for assessment of ESG
topic priorities

Textualanalysis3

Textual analysis basedon external sources

An engagement initiative could involve multiple stakeholder categories.

Sustainability Report 2023

MAIN PRIORITY
TOPICS FORSTAKEHOLDERS

Surveys

CUSTOMERS40ENGAGEMENTINITIATIVE

Urgency temporal dimensionof the relationship

Surveys sent directlyby the e-mia® system
for assessment of ESG
topic priorities

Qualitative
assessment(1)

Influence importance of therelationship for the Company

39

Stakeholder relevance increases as color
intensity increases

1Letter to stakeholders

RELEVANCE

2
Enel’s commitment
to sustainable development

CATEGORY OF
1ST LEVELSTAKEHOLDERSTYPE OFENGAGEMENT

Qualitative
assessment

3

NO.(1)

80

INSTITUTIONS

4ENGAGEMENTINITIATIVE

NO.(1)

Focus group16

One-on-one interview

30

Index analysis

17

Survey with focus
on ESG topics

8

Document analysis

7

Open response
questionnaire

2

Surveys15

Surveys sent directlyby the e-mia® system
for assessment of ESG
topic priorities

15

Textualanalysis

13

Textual analysis basedon external sources13

Index analysis

21

Survey with focus on
ESG topics

4

Document analysis

1

Qualitative
assessment

26

FINANCIALCOMMUNITY
Surveys8

Surveys sent directlyby the e-mia® system
for assessment of ESG
topic priorities

8

Textualanalysis1

Textual analysis basedon external sources

1

Focus group9One-on-one interview

13

Index analysis

8

Survey with focus
on ESG topics

11

Open response
questionnaire

2

30

2

Qualitative
assessment

43

SUPPLIERS AND
CONTRACTORS(1)

Stakeholder engagement andmateriality analysis

Surveys30

Surveys sent directlyby the e-mia® system
for assessment of ESG
topic priorities

Textualanalysis2

Textual analysis basedon external sources

An engagement initiative could involve multiple stakeholder categories.

Performance 2023

MAIN PRIORITY
TOPICS FORSTAKEHOLDERSSUSTAINABILITY
PLAN• Climate change• Zero emissions
ambition• Watermanagement• Nature

5

Appendix• Preservation of
biodiversity andecosystems• Soundgovernance• Soundgovernance• Water resourcesmanagement• Zero emissions
ambition• Climate change• Nature• Health andsafety• Occupational
health and safety• Sustainablesupply chain• Suppliers• Businessconduct
and ethics• Soundgovernance

Stakeholder relevance increases as color
intensity increases

Stakeholder engagement and materiality analysis

41

RELEVANCE

CATEGORY OF
1ST LEVELSTAKEHOLDERSTYPE OFENGAGEMENT

Qualitative
assessment

NO.(1)

115

CIVIL SOCIETY
AND LOCALAND GLOBALCOMMUNITIESFocus group33

One-on-one interview

37

Index analysis

18

Survey with focus on
ESG topics

7

Document analysis

9Open response
questionnaire

11

23

SUSTAINABILITY
PLAN• Climate change• Zero emissions
ambition• Preservation of
biodiversity andecosystems• Nature• Resilient grids• A safer, more
resilient anddigitalized power
grid

23

Textualanalysis

13

Textual analysis basedon external sources

13

Focus group7

One-on-one interview

4

Index analysis

18• Customers

Survey with focus
on ESG topics• Customer
centricity

7• Innovation• Innovation

Document analysis

2• Digitaltransformation• Digitalization

Open response
questionnaire

1Surveys sent directly by
the e-mia® system forassessment of ESG topic
priorities

2

Focus group22

One-on-one interview

6

Index analysis

19

Survey with focus on ESG
topics7• Health andsafety• Occupational
health and safety

Document analysis

2• Climate change• Zero emissions
ambitionIndirect survey

1• Sustainablesupply chain• Suppliers

Open response
questionnaire

2

9

5

Surveys

Qualitative
assessment

39

2

59

BUSINESSCOMMUNITY

Surveys9

Surveys sent directly by
the e-mia® system forassessment of ESG topic
priorities

Textualanalysis5

Textual analysis basedon external sources

An engagement initiative could involve multiple stakeholder categories.

Sustainability Report 2023

MAIN PRIORITY
TOPICS FORSTAKEHOLDERS

Surveys

MEDIA

42

NO.(1)

Surveys sent directlyby the e-mia® system
for assessment of ESG
priority topics

Qualitative
assessment(1)

ENGAGEMENTINITIATIVE

Stakeholder relevance increases as color
intensity increases

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Double materiality
3-1

3-2

3-3

DOUBLE MATERIALITY ANALYSISFINANCIAL
MATERIALITY
RONME

VE

PA
CT

EN

TI

NT

VI

GA

IMPACT
MATERIALITY

IM

S

KS

S

IM

P AN

A

TE

RIAL

IT

Y

C

OM

R

MATERIAL RISKSANDOPPORTUNITIES

TE

IM

PO

TU

IN

Identification andassessment of
impacts (actual
and/or potential,
positive and/or
negative)generated by theCompany on theeconomy, theenvironment andpeople, taking into
account possible
violations of humanrights, in the short,medium andlong term.

PA

OP

CT

S

RIAL

M

TE

P A CT

Y

IT

Y

F

D P O PL
E

L

M

A

ANCI AIN

E

NA

PRIORITYESG
TOPICS

Identification andassessment of risks
and opportunities
related to ESG topics
arising from theexternal environment,
which affect or could
affect, positively(opportunities)/
negatively (risks), theCompany‘s financial
position, results ofoperations and cash
flows, access tofinance or cost ofcapital in the short,medium or long term.

NE

RI

1

NI

TIE

RN

S

AL

P

AND

EXTERNAL STAK

I
OS

E

TI

L
HO

VE

DE

RS

POSITIVE AND
NEGATIVE
MATERIAL IMPACTS

MATERIAL TOPICS

Identification of potentially material IROs
Enel identifies potentially material impacts, risks and opportunities (IROs) related to sustainability issues, taking
into account the main standards, including GRI’s Universal Standards and the sustainability reporting standards
issued by EFRAG (see the list of sustainability issues in
ESRS 1, paragraph AR16), as well as the outcome of thehuman rights due diligence perceived risk assessment(3)and the activities described above that contribute to understanding the context in which the Company operates(ESG megatrend analysis and priorities provided by external stakeholders). In addition, the Company’s internal
stakeholders contribute to the process of defining IROs,
since, through their own activities, they manage the relationship with external stakeholders, knowing the potential
impacts, risks and opportunities which might affect themor the organization.
Therefore, the external context in which the Group operates, including the Company’s business activities and relationships, is taken into account in the identification of
impacts, while the definition of risks and opportunities
considers how these may arise from the impacts generated by the Company, i.e., the existence of dependencies onnatural and social resources as sources of potential positive and/or negative financial effects.
The list of potentially material IROs related to ESG topics(approximately 180 IROs were mapped in 2023) is considered the basis for internal stakeholder assessment, withthe aim of determining the material impacts, risks andopportunities from which the corresponding material
topics are derived.

(3) For additional details, see the chapter “Managing human rights”.

Stakeholder engagement and materiality analysis

43

Evaluation of IROs
Potentially material IROs relating to sustainability issues
were subjected to assessment by internal and external
stakeholders relevant to the Group, involving a total of 16
countries, to determine material impacts – the so-called

impact materiality – and material risks and opportunities –the so-called financial materiality.
The methodology applied is outlined below.

a) Impact materiality
Impact materiality analysis consists of assessing the impacts generated by the Company on the economy, the environment and people, both negative (taking into accountany human rights violations), and positive (evaluating thecontribution to sustainable development). An ESG topic istherefore material, from the point of view of impact materiality, if it concerns material impacts (actual or potential,
positive or negative) of the Company on people or the environment in the short, medium or long term.
Enel has been conducting the analysis of impact materiality since 2019 and over the years, taking into consideration the main reference standards available, such as
those defined by GRI and EFRAG, it has strengthened themethodology adopted.
In particular, potentially material generated impacts wereassessed on the basis of the following characteristics:• negative (potential and/or actual):– scale: how severe the impact is or could be;– scope: how widespread the impact is or could be;– irremediable character: how difficult it is or could be
to counteract or repair the resulting damage;– the likelihood in case of potential impact ;(4)• positive (potential and/or actual):– scale: how the impact can or could have positive effects;– scope: how widespread the impact is or could be;– the likelihood in case of potential impact.
On the basis of the characteristics described above, aworkflow of questions was developed in the proprietary
e-mia system to guide internal stakeholders, involvedin the process, in the assessment of their own impacts.
These evaluations make it possible to define a final scorefor each impact (expressed as a percentage from 1 to100). On the scores thus obtained, the appropriate quanti-qualitative thresholds are applied to define the material
impacts (see section “Material topics”).

b) Financial materiality
Financial materiality analysis consists in identifying andassessing risks and opportunities related to ESG topics
arising from the external environment, which affect or
could affect, positively (opportunity)/negatively (risk), theCompany’s financial position, results of operations andcash flows, access to finance or cost of capital in the short,medium or long term.
Such information is particularly relevant for investors (socalled “primary users”) because, if omitted, misrepresented or obscured, it could reasonably influence their investment choices and decisions.
Enel already conducted the financial materiality assessment in 2022 and in 2023, taking into consideration thechanges introduced by the main European standard ofreference available issued by EFRAG, it has strengthened
the methodology adopted. Furthermore, financial materiality was also developed considering the relevance of ESG
topics according to the SASB Standard in relation to Enel’s

primary area of reference: “Electric Utilities & Power Generators Sector”.
In particular, potentially material risks and opportunities
were assessed on the basis of the following characteristics:• potential magnitude of financial effects;• likelihood of occurrence.
On the basis of the characteristics described above, aworkflow of questions was developed in the proprietary
e-mia system to guide internal stakeholders, involvedin the process, in the assessment of risks/opportunities
within their remit. These evaluations make it possible todefine a final score for each risk/opportunity (expressed asa percentage from 1 to 100). On the scores thus obtained,
the appropriate quanti-qualitative thresholds are applied
to define the material risks/opportunities (see section“Material topics”).

(4) For potential impacts, the likelihood is considered together with the severity of the impacts. However, in the case of potential negative impacts on humanrights, as specified in ESRS 1, paragraph 45, severity prevails over likelihood in identifying material topics.

44

Sustainability Report 2023

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Material topics
3-1

3-2

3-3

The double materiality analysis allows the Company toidentify material environmental, social and governancetopics that are significant from an impact materiality perspective, a financial materiality perspective or both (seetables below). In order to assess the materiality of impacts,
risks and opportunities, and thus material ESG topics, appropriate quanti-qualitative thresholds are applied to thefinal values obtained from the assessment of all potential
material IROs. The EFRAG guidelines, as they stand, do notmention how the threshold should be applied, leaving it up
to companies to decide how to apply a “judgement” metric that allows them to define material impacts, risks andopportunities. Enel has chosen to apply a threshold that
ensures a fair and equitable representation of IROs, favor-

MATERIAL TOPIC(1st LEVEL)

CLIMATE CHANGEENVIRONMENTAL

1

GOVERNANCE
AND ADVOCACYFOR
NATURE AND
CLIMATEing maximum transparency especially on the most sensitive topics for the sector to which the Company belongs.
In support of this approach, Enel has also applied the“judgement” criterion, referred to in the regulations, according to which the materiality of IROs is also defined on
the basis of facts and circumstances specific to the Company.
The identification of material ESG topics allows the Company to focus on defining the best way to manage both
negative generated impacts and risks, as well as the enhancement of opportunities. Therefore, if the double materiality analysis guides the identification of the material
topics, the priority topics direct the Company’s further efforts to pursue the strategic choices.

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANT GRI

Mitigation: reducing
direct GHG
emissions (Scope 1)• Renewable capacity development (solar,
wind, biomass, geothermal, mini-hydro)• Coal phase-out• Gas phase-out• GRI 303: Water and effluents• Zero emissions
ambition• GRI 304: Biodiversity• GRI 305: Emissions• GRI 305-1: Direct greenhouse gas (GHG)
emissions (Scope 1)• GRI 305-3: Other indirect greenhouse gas(GHG) emissions (Scope 3)• EU1: Installed capacity, broken down byprimary energy source and regulatory
regime• DMA EU (former EU6): Management
approach to ensure energy availability andreliability in the short and long term
• EU12: Transmission and distribution losses
as a percentage of total energy• DMA EU (former EU23): Programs, including
those in partnership with the government, toimprove or maintain access to electricity andcustomer service• EU28: Frequency of power outages• EU29: Average duration of power outage• Reducing CO2 emissions due to new
Reducing GHG
technologies and solutions for homes
emissionsand condominiums
of services and products
to customers• Reducing CO2 emissions due to newtechnologies and solutions for cities• Reducing CO2 emissions due to newtechnologies and solutions for industries• Reducing CO2 emissions due toe-mobility
Adapting toclimate change• Adapting to extreme weather

Governance andadvocacy
for nature• Certified environmental management
system• Environmental policies

Governance andadvocacy
for climate• Climate policy

Protecting biodiversity• Conservation and promotion of the local
natural heritage

Mitigation of impacts
on natural heritage• Optimizing dependencies andopportunities of impacts on ecosystemservices• Optimizing dependencies andopportunities of impacts of ongoing
operations on biodiversity• Noise management and mitigation• Managing and mitigating visual impact

Soil management• Reducing land use• Restoring degraded soils

PRESERVATION
OF BIODIVERSITY
AND ECOSYSTEMSSUSTAINABILITY
PLAN• GRI 2-22: Statement on sustainable
development strategy• GRI 2-23: Policy commitments• GRI 2-24: Embedding policy commitments• GRI 2-27: Compliance with laws andregulations• Nature• GRI 304: Biodiversity• Nature• Zero emissions
ambition

Stakeholder engagement and materiality analysis

45

MATERIAL TOPIC(1st LEVEL)

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANT GRISUSTAINABILITY
PLAN

Pollution reduction• Reducing emissions into the air(excluding CO2)
• Protection, monitoring and remediationof soil, subsoil and groundwater• Discharge management• GRI 303-4: Water discharge• GRI 304: Biodiversity• GRI 305-6: Emissions of ozone-depleting
substances (ODS)• GRI 305-7: Nitrogen oxides (NOx), sulphuroxides (SOx) and other relevant air
emissions• Nature

New life cycles• Reuse• Regeneration• Recycling• GRI 301-2: Recycled input
materials used
• GRI 306-4: Waste not sent to landfill• Circular economy

Non-hazardous waste• Non-hazardous waste from operations
and maintenance (O&M)• Non-hazardous waste from construction
activities• GRI 306: Waste• GRI 306-3: Waste generated• GRI 306-4: Waste not sent to landfill• GRI 306-5: Waste sent to landfill• Nature

Hazardous waste• Hazardous waste from operations andmaintenance (O&M)• Hazardous waste from construction
activities• GRI 303-3: Water withdrawal• GRI 303-4: Water discharge• GRI 303-5: Water consumption• Nature• GRI 2-22: Statement on sustainable
development strategy• GRI 2-23: Policy commitments• GRI 2-24: Embedding policy
commitments• GRI 205-1: Operations assessed todetermine corruption risks• GRI 205-2: Communicationand training on anti-corruption regulations
and procedures• GRI 205-3: Confirmed incidents ofcorruption and measures taken• GRI 206-1: Legal actions relating toanticompetitive behavior, trust activities
and monopolistic practices• GRI 207-1: Approach to taxes• GRI 207-2: Tax governance, control and risk
management• GRI 415-1: Political contributions• Soundgovernance• GRI 417-1: Labeling requirements andproduct and service information• DMA EU (former EU23): Programs, including
those in partnership with the government,
to improve or maintain access to electricity
and customer service• DMA EU (former EU24): Practices toaddress language, cultural, low-literacy,and disability-related barriers, access toand safe use of electricity, and customer
support services• Customers• GRI 203-1: Investment in infrastructure andservices supported• GRI 413: Local communities• GRI 413-1: Operations with local community
engagement• DMA EU (former EU19): Stakeholder
engagement in decision-making on energy
planning and infrastructure development• EU22: Number of people physically or
economically displaced and compensation,broken down by project type
• DMA EU (former EU20): Approach to
managing the impacts of displacement• EU25: Number of injuries and deaths
among the public involving company assets,
including legal rulings, settlements, andpending illness lawsuits• Communities

ENVIRONMENTAL

AIR, WATER AND
SOIL QUALITYCIRCULARECONOMYWASTE

GOVERNANCE

WATER RESOURCES
MANAGEMENT

Responsible use of water • Treatment, recycling and use ofwastewater• Reducing water consumption• Managing water resource availability

Tax transparency• Tax transparency

Legal disputes• Legal proceedings

Solutions dedicated tocustomer needs• Affordability of tariffs and flexibility of
payments• Availability of energy-efficient products
and services

Quality of customer
relations• Customer awareness of efficient andsustainable energy use• Effective and fair relationship withcustomers

Listening tocommunities• Dialogue, sharing and engagement incommon objectives• Dispute management and grievancemechanisms

Supporting thesocial and economic
development ofcommunities• Employment development in the areasof presence• Supporting families and local services

BUSINESSCONDUCTAND ETHICSSOCIALCUSTOMER
CENTRICITYENGAGING LOCALAND GLOBALCOMMUNITIES

46• Zero emissions
ambition

Sustainability Report 2023

Letter to stakeholders

MATERIAL TOPIC(1st LEVEL)

SOCIALHEALTH AND
SAFETYSUSTAINABLE
SUPPLY CHAIN

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANT GRISUSTAINABILITY
PLAN

Worker health• Promoting worker healthWorker health andsafety• Managing and monitoring worker safety• Promoting a safety culture among
workers• Care for the mental and physical safetyof workers• GRI 403: Occupational health and safety• GRI 410: Safety practices• Occupational
health and safety

Health and safety ofworkers of contractors
operating on Enel sites• Managing and monitoring contractor
safety• Promoting a culture of safety among
workers of contractors who operate at
Enel sites

Contract execution• Promoting respect for just andfavorable working conditions and nondiscrimination in relations with suppliersand contractors• Suppliers

Qualification of
suppliers andcontracting firms• Qualification of suppliers and contracting
firms based on occupational health andsafety, human rights, and environmental
impact criteria

Tendering of suppliersand contracting firms• Preparing calls for tenders aimed atpromoting sustainable practices• GRI 204: Procurement practices• GRI 204-1: Proportion of expenses paid tolocal suppliers• GRI 308: Supplier Environmental
Assessment• GRI 308-1: New suppliers selected using
environmental criteria• GRI 407-1: Activities and suppliers where
the right to freedom of association andcollective bargaining may be at risk
• GRI 414: Supplier Social Assessment• GRI 414-1: New suppliers selected usingsocial criteria• GRI 414-2: Negative social impacts in the
supply chain and actions taken

Cyber security• Strategy and management models forcyber security• Cyber security culture• The material topic is not currently coveredby a specific GRI• Digitalization

Capital balance andsoundness• Capital structure balanceLong-term value
creation strategy• Business Ownership model• GRI 201: Economic performance• GRI 201-1: Direct economic value
generated and distributed• GRI 2-6: Activities, value chain and otherbusiness relationships• Zero emissions
ambition• Business drivers

Long-term value
distribution strategy• Operating costs of the business(including payments to suppliers)• Community investments

E-mobility• Development of Vehicle-Grid Integration• Deployment of infrastructures fore-mobility• Public e-mobility• The material topic is not currently coveredby a specific GRI• Electrification of
uses

Operational
managementof grids• Grid maintenance• DMA EU12: Transmission and distribution
losses as a percentage of total energy• DMA EU (former EU23): Programs, including
those in partnership with the government,
to improve or maintain access to electricity
and customer service• EU28: Frequency of power outages• EU29: Average duration of power outage• A safer, more
resilient anddigitalized power
grid

DIGITAL TRANSFORMATIONECONOMIC VALUECREATION
CROSS

1

ELECTRIFICATIONOF USESRESILIENT GRIDS

Stakeholder engagement and materiality analysis

47

POSITIVE MATERIAL IMPACTS
MATERIAL
IMPACT

TYPE

Adopting a tax strategy (set of principles
and guidelines based on values of transparency and legality) by Group companies to ensure fair, responsible andtransparent tax contributions

ActualThe tax strategy was approved by the Enel SpA Board of Directors in2017 and its implementation is mandatory for all Group companies.
Its implementation is further ensured by a dedicated organizational
policy.
The tax strategy, its principles and the results of their application are
published in a dedicated section of Enel’s website, as well as in several
corporate reports (e.g., the Tax Transparency Report).

Increase in investments/financial resources to support the energy transitionand low-carbon technologies

ActualThe Enel Group is pursuing a strategy with investments allocated efficiently by focusing on key infrastructure for grid development, withthe aim of improving quality and resilience, and making the most oftechnological developments and opportunities for generation fromrenewable sources. The goal is to pursue value creation by addressing
the challenges of climate change, promoting electrification of consumption, and improving end-customer management.

Mitigating climate change by reducing
absolute greenhouse gas emissions
from the thermoelectric phase-out

ActualEnel has made a commitment to complete the decarbonization process of its entire value chain by 2040, in line with the goals of the Paris
Agreement (COP 21) to limit the average global temperature increase
to 1.5 °C. To this end, Enel has constructed a roadmap that includes
mid-term targets to 2030 (compared to the 2017 base year levels)
certified by the Science Based Targets initiative (SBTi) in line with the
1.5 °C pathway: in particular, the Company has committed to 100% renewable energy generation by 2040 with an intermediate target of atleast 80% of installed renewable capacity by 2030 and coal phase-out
by 2027.

Contribution to reducing health problems in local communities through coordination with local health authorities

ActualManaging relations with communities and other stakeholders is a key
factor in all Enel Group activities for establishing strong and lasting
relationships with communities, including local, indigenous and tribal peoples, through broad, inclusive and ongoing dialogue based on
clear phases of stakeholder engagement, and in line with the relevantinternational standards (such as the United Nations Guiding Principles
on Business and Human Rights and the OECD Guidelines for Multinational Enterprises). This approach is integrated into the business. In
fact, the Enel Group pursues the economic and social developmentof the context in which it operates through numerous sustainability
projects, generating an increasing number of beneficiaries. This includes the projects carried out with local health authorities to ensure
and improve the state of well-being and health of the context in which
Enel operates.

Promoting the electrification of cities
through the availability of e-mobility infrastructure and technology

ActualFor the Enel Group, the electrification of transport is one of the keys
to decarbonizing consumption, using digitalization as an accelerator
for the development of increasingly innovative, flexible and integrated services. In this context, e-mobility plays a fundamental role asdemonstrated by the constant spread of new services and products,
such as charging points for electric vehicles throughout the country.

(1)

Duration:

Short term

DURATION(1)Medium term(2) “-” is reported where the material topic is not currently covered by a specific GRI
ESG priority topics for stakeholders

48

Sustainability Report 2023

IRO related to human rights

IMPACT
MANAGEMENTLong term

1

Letter to stakeholders

VALUE
CHAIN

2
Enel’s commitment
to sustainable development

MAIN
MATERIAL TOPICSTAKEHOLDERS (1st LEVEL)INVOLVED
Communities

Business conduct and ethics

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANTGRI

Tax transparency

Tax transparency• GRI 207-1: Approach totaxes

Appendix• GRI 207-2: Tax
governance, control andrisk management

Communities

Economic value creation

Long-term value creation
strategy

Business Ownership
model• GRI 201: Economic
performance• GRI 2-6: Activities, value
chain and other business
relationships

PlanetCommunities

ClimatechangeMitigation: reducing
direct GHG emissions(Scope 1)

Coal phase-out

Engaging local and global
communities

Supporting the social andeconomic developmentof communities

Supporting families
and local services

Gas phase-out• GRI 305-1: Direct
greenhouse gas (GHG)
emissions (Scope 1)• GRI 203-1: Investment
in infrastructure andservices supported• GRI 413: Local
communities• EU25: Number of injuries
and deaths among the
public involving company
assets, including legal
rulings, settlements, andpending illness lawsuits

Customers

Electrificationof uses

E-mobility

Development of VehicleGrid Integration-(2)

Deployment of
infrastructures fore-mobility
Public e-mobility

Impact generated directly by
its own activities

Impact generated not directly by its own
activities but caused by its own business relationships

Stakeholder engagement and materiality analysis

49

MATERIAL
IMPACT

TYPE

Commitment to reducing air pollutant
emissions (other than CO2) through ongoing monitoring and improvement programs to prevent accidental events anduncontrolled dispersion

ActualThe Group has set significant reduction targets for 2030 for specificpollutants emitted into the atmosphere, in line with the Group's SBTi-certified process of reducing GHG emissions to complete the process of decarbonization and coal phase-out.
For the Enel Group, reducing the environmental impacts associatedwith plant operation is a strategic objective, which it pursues throughthe application of the best technologies available and best international practices. Emission measurements are carried out in compliance with each Country’s regulatory framework and, in the majorityof large plants, a measurement system is used that can assess compliance with the limits in real time. Its reliability is guaranteed by accredited certifying entities and through assessments carried out byinspection authorities.

Commitment to biodiversity through initiatives to protect and restore habitats
and natural capital, particularly in protected areas and with respect for threatened species, and adopting locationand design criteria to guarantee No Net
Deforestation, No Go in natural UNESCOWorld Heritage sites and no net loss of
biodiversity

ActualIn environmental and natural ecosystems, Enel is implementing suitable actions to protect, restore, and conserve biodiversity, in species
and natural habitats, respecting the principle of mitigation hierarchy(avoid, minimize, restore, and compensate), as well as suitable terrestrial, marine, and river monitoring activities to check the effectivenessof the measures taken. In this context, the Group recognizes that
protecting the environment and natural resources, combating climate change and contributing to sustainable economic development
are strategic factors in the planning, operation and development of
its activities. This commitment is enshrined in the Group’s Biodiversity Policy. Enel plays an active part in the international debate withstakeholders and in the networks with the most influence in naturaland biodiversity issues (such as Business for Nature, Taskforce on
Nature-related Financial Disclosures, World Business Council for Sustainable Development and Science Based Targets for Nature). Enel
implements programs and plans for the prevention, mitigation andrecovery of impacts on ecosystems and natural habitats at all critical
and/or significant sites for all its assets.

Commitment to waste management
through circularity improvement programs and over-compliance goals to
reduce waste generation with a view tolife cycles

ActualThe Enel Group applies the principles of the circular economy
throughout the life cycle of assets: from the design stages, including
by engaging the supply chain, through to utilization and end-of-life
management, with the aim of maximizing asset and material recovery(through recycling or reuse for example).
Enel pursues the goal of generating economic value from its businessactivities by reducing the use of raw materials and fuels. To monitor
this circularity objective, Enel has developed a KPI “Economic CirculAbility”, which takes the Group’s overall EBITDA (in euros) and comparesit with the amount of resources consumed, both fuel and raw materials, throughout the value chain by the various business activities(expressed in tons). Enel has committed to doubling its performance inrelation to this KPI by 2030 compared to 2020, i.e., to halve the amountof resources consumed compared to the EBITDA generated.

(1)

Duration:

Short term

DURATION(1)Medium term(2) “-” is reported where the material topic is not currently covered by a specific GRI
ESG priority topics for stakeholders

50

Sustainability Report 2023

IRO related to human rights

IMPACT
MANAGEMENTLong term

1

Letter to stakeholders

VALUE
CHAIN

2
Enel’s commitment
to sustainable development

MAIN
MATERIAL TOPICSTAKEHOLDERS (1st LEVEL)INVOLVED
PlanetAir, water and soil quality

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANTGRIReducing pollution

Reducing emissions into
the air (excluding CO2)

• GRI 305-6: Emissionsof ozone-depleting
substances (ODS)

5

Appendix• GRI 305-7 Nitrogen oxides(NOx), sulphur oxides (SOx)and other relevant air
emissions

PlanetPreservation of biodiversity
and ecosystems

Protecting biodiversity

Conservation andpromotion of the local
natural heritage• GRI 304: Biodiversity

PlanetCircular economy

New life cycles

Reuse• GRI 301-2: Recycled input
materials used

Regeneration
Recycling

Impact generated directly by
its own activities• GRI 306-4: Waste notsent to landfill

Impact generated not directly by its own
activities but caused by its own business relationships

Stakeholder engagement and materiality analysis

51

NEGATIVE MATERIAL IMPACTS
MATERIAL
IMPACT

TYPE

Procurement of goods and services
from activities tied to potential humanrights violations (e.g., exploitation of unskilled and low-paid workers)

ActualSupplier services must adopt best practices according to the highest standards of sustainability, as well as ensure the necessary quality
standards. Therefore, partner selection and contract execution are
subject to analysis and monitoring activities throughout the entire
procurement process. The supplier qualification system includes distinct pathways, which combine the risk level identified and Countries
qualified for, with a sustainability assessment on health and safety,
environment and human rights, along with a reputational check. The
bidding process also includes “sustainability requirements and Ks” tobe monitored throughout the contract period.
The Terms of Contract also require compliance with relevant legislation and regulations, and adherence by suppliers to the principles Enelhas committed to in the Human Rights Policy, Code of Ethics, Zero
Tolerance of Corruption Plan, and global compliance programs.

Increased environmental impacts due todelays in adopting bureaucratic procedures for the installation, maintenance,and repair of energy-efficient products
and services

ActualEnel also facilitates the electrification process by providing products and services that support customers in the energy transition. To
achieve this goal, authorizations are often required from the relevant
authorities. As such, bureaucratic delays have occurred (e.g., due towaiting for new regulations, or lack of knowledge by operators on thecorrect process, etc.), which Enel manages by continually monitoring
the paperwork and providing timely information to customers.

Increase in the number of vulnerable
customers and energy poverty due to anincrease in the price of electricity

ActualThe Enel Group aims to continue supporting citizens to improve andmaintain access to electricity in the most deprived areas and in underserved populations. All the countries in which the Group operates
in fact provide forms of support, often linked to state initiatives, whichmake it easier for certain sections of the population to pay electricity
and gas bills, thus allowing equal access to energy. In fact, the Groupis also committed to a “fair for all” energy transition by offering innovative and inclusive services for customers with vulnerable conditions(e.g., due to age, disability, economic status, etc.), in line with the Human Rights Policy.
Moreover, the Enel Group is committed to going above and beyond
the support provided by country legislation, such as the so-called“social bonus” enacted in Italy and Spain (which helps vulnerable customers with the payment of electricity and gas costs). Initiatives arealso dedicated to providing information on support opportunities forvulnerable groups in society, as well as projects to provide concrete
support.

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Duration:

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ESG priority topics for stakeholders

52

Sustainability Report 2023

DURATION(1)Medium term
IRO related to human rights

IMPACT
MANAGEMENTLong term

1

Letter to stakeholders

VALUE
CHAIN

2
Enel’s commitment
to sustainable development

MAIN
MATERIAL TOPICSTAKEHOLDERS (1st LEVEL)INVOLVEDSuppliers

PlanetCustomers

Sustainable supply chain

Climate change

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANTGRI

Contract execution

Promoting respect forjust and favorable working
conditions and nondiscrimination in relations
with suppliers andcontractors• GRI 414-1: New suppliers
selected using social
criteria

Reducing CO2 emissions
due to new technologies
and solutions for homes
and condominiums• GRI 305-3: Other indirect
greenhouse gas (GHG)
emissions (Scope 3)

Reducing GHG emissionsof services and products
to customers• GRI 407-1: Activities andsuppliers where the rightto freedom of associationand collective bargaining
may be at risk

Reducing CO2 emissions
due to new technologies
and solutions for cities
Reducing CO2 emissions
due to new technologies
and solutions forindustries
Reducing CO2 emissions
due to e-mobility
Customers

Customer centricity

Solutions dedicated tocustomer needs

Affordability of tariffs andflexibility of payments• GRI 417-1: Labelingrequirements and productand service information• DMA EU (former EU23):
Programs, including thosein partnership with thegovernment, to improveor maintain access toelectricity and customer
service• DMA EU (former EU24):
Practices to address
language, cultural, lowliteracy, and disabilityrelated barriers, access toand safe use of electricity,and customer support
services

Impact generated directly by
its own activities

Impact generated not directly by its own
activities but caused by its own business relationships

Stakeholder engagement and materiality analysis

53

MATERIAL
IMPACT

TYPE

Lack of consultation process for initiating new projects, causing community
opposition

ActualRelationship management with communities and other stakeholders
is a key factor of all Group activities. The Enel Group aims to establish
strong and lasting community relations, including local communities
and indigenous and tribal peoples, through broad, inclusive and ongoing dialogue based on clear phases of stakeholder engagement,
and in line with relevant international standards (such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises). This approach is integrated into
the business. In fact, the Enel Group involves the local communities
in which it operates right from the early stages of development of its
business projects. Thanks to its direct presence in local areas, Enelraises awareness in communities by sharing the mutual benefits ofinitiatives and informing them about climate change issues and theimpact of energy transition, and setting shared sustainability goals.
To strengthen the integration of these principles, internal organizational documents are also being reviewed with a view to ongoing improvement.

Negative environmental damage (e.g.,
depletion of natural water resources
resulting in the decay of related ecosystem services, pollution and/or deterioration of water and soil) due to inadequate
water management (e.g., excessive water withdrawals for the resource regeneration capacity and ecosystem needs,
particularly in water-stressed areas, uncontrolled discharges or leaks of wastewater, effluents with an excessive heatload or pollutants)

Potential

Adopting ISO 14001-certified Environmental Management Systems
within the Group ensures the presence of structured policies andprocedures for identifying and managing environmental risks andopportunities associated with all business activities (including Enel’s
Human Rights Policy, which contains a specific principle relating to theenvironment (2.2.1)). Enel constantly monitors all electricity generationsites located in areas at risk of water scarcity (water stress areas) toensure efficient use of water resources. Mapping of production sites
in water-stressed areas is done in line with the criteria of GRI 303(2018) referring to the conditions of “(baseline) Water Stress”. With
the aim of identifying technological solutions to reduce consumption,
special attention is paid to assets in areas of high water stress. The riskof water scarcity is also mitigated by the growth in generation fromrenewable sources, such as wind and solar, which are not essentiallydependent on the availability of water for their operation.

Environmental damage (soil sealing,noise pollution, loss of habitat and biodiversity, reduction of biodiversity ecosystem services) due to inadequate protection of biodiversity and natural capital(e.g., land occupation, transformation ofnatural habitat, interaction with protected species and/or protected areas due
to construction, operation, or decommissioning of assets)

Potential

In environmental and natural ecosystems, the Enel Group is implementing suitable actions in order to protect, restore and conserve
biodiversity, in species and natural habitats, respecting the principleof mitigation hierarchy (avoid, minimize, restore and compensate), as
well as suitable terrestrial, marine and river monitoring activities tocheck the effectiveness of the measures taken. In this context, theGroup acknowledges that protecting the environment and natural resources, combating climate change and contributing to sustainableeconomic development are strategic factors in the planning, operation and development of its activities. This commitment is enshrinedin the Group’s Biodiversity Policy and Human Rights Policy, which includes a specific principle relating to the environment (2.2.1).
Enel plays an active part in the international debate with stakeholders andin the networks with the most influence in natural and biodiversity issues(such as Business for Nature, Taskforce on Nature-related Financial Disclosures, World Business Council for Sustainable Development and Science Based Targets for Nature). Enel implements prevention, mitigation
and recovery programs and plans for the impact on ecosystems and natural habitats in all critical and/or significant sites for all its assets.

Damages related to environmental degradation (environmental pollution, reduction of ecosystem services) due toimproper waste management (e.g., dispersal or abandonment of waste, violation of laws)

Potential

The Enel Group works constantly to mitigate and reduce the potential
environmental impact of the waste management activities generated
by its operations. To this end, Enel has established global and Country-level targets, which translate into action plans at individual plant
and territorial unit level, with the aim of reducing the waste generated
by its operations, be it direct or contracted. Moreover, by adoptingGroup Guidelines on Waste Management and using Integrated Management Systems throughout the Company with dedicated operatingprocedures, as well as local active monitoring and control tools such
as ECoS (Extra Checking on Site) inspections, Enel aims to ensure
constant oversight and improvement in waste management and in
the prevention of accidental events that may cause damage to theenvironment.

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Duration:

Short term

ESG priority topics for stakeholders

54

Sustainability Report 2023

DURATION(1)Medium term
IRO related to human rights

IMPACT
MANAGEMENTLong term

1

Letter to stakeholders

VALUE
CHAIN

2
Enel’s commitment
to sustainable development

MAIN
MATERIAL TOPICSTAKEHOLDERS (1st LEVEL)INVOLVED
Communities

Engaging local and global
communities

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

MATERIAL TOPIC(2nd LEVEL)

MATERIAL TOPIC(3rd LEVEL)RELEVANT
GRI

Listening to communities

Dialogue, sharing andengagement in common
objectives• GRI 413-1: Operations
with local community
engagement

5

Appendix• DMA EU (former EU19):
Stakeholder engagement
in decision-making
on energy planningand infrastructuredevelopment

PlanetWater resourcesmanagement

Responsible use of water

Treatment, recycling andreuse of wastewater
Reducing water
consumption• GRI 303-4: Water
discharge• GRI 303-5: Water
consumption

Managing water resource
availability

PlanetPreservation of biodiversity
and ecosystems

Mitigation of impacts onnatural heritage
Soil management

Optimizing dependencies
and opportunities ofimpacts of ongoing
operations on biodiversity• GRI 304: Biodiversity

Noise management andmitigation
Managing and mitigating
visual impact
Reducing land use

Planet

Waste

Non-hazardous waste
Hazardous waste

Non-hazardous wastefrom operations andmaintenance (O&M)• GRI 306: Waste

Non-hazardous wastefrom construction
activities
Hazardous waste fromconstruction activities
Hazardous wastefrom operations andmaintenance (O&M)

Impact generated directly by
its own activities

Impact generated not directly by its own
activities but caused by its own business relationships

Stakeholder engagement and materiality analysis

55

POTENTIAL MATERIAL OPPORTUNITIESMATERIAL OPPORTUNITY
Improving company reputation by working
with sustainability-compliant suppliers

In addition to ensuring the necessary quality standards, the partners are required
to commit to best practices on human rights and the impacts of their activities, including working conditions, occupational health and safety, environmental responsibility, and respect for privacy by design and by default. They are also an integral
part of development and awareness programs: each person must feel that they are
responsible for their own health and safety as well as for the health and safety ofothers. In terms of specific actions, Enel ensures that its procurement processes are
based on criteria that promote sustainable development, as well as the principles offree competition, equal treatment, non-discrimination, transparency and rotation
over and above compliance with local legislation.
Specifically, the General Terms and Conditions of Contract require compliance with
relevant current legislation and regulations, and for suppliers to sign up to the principles to which Enel has committed in the Human Rights Policy, Code of Ethics, Zero
Tolerance of Corruption Plan, and global compliance programs. In terms of environmental impact, in 2019 Enel embarked on a path of supply chain decarbonization,
which has already produced visible results.

Decreased disputes and complaints
thanks to listening to and engaging the
local communities in the areas where theCompany operates

Thanks to ongoing systematic dialogue and community engagement through its
local structures, the Enel Group aims to create and maintain stable and long-term
relationships, including through socio-economic development projects.

Anticipating changes in national and international environment legislation andstandards by adopting an over-compliance strategy to take on the role of a
global environmental best performer withrespect to the most stringent regulatorycompliance requirements

Enel plays an active and leadership role in international meetings and in the discussion and application of new national and international standards regarding environmental issues in order to align and anticipate their organizational implications.
A structured control plan – combined with actions and improvement objectives
inspired by the best environmental and social practices, with requirements higher
than those of simple environmental regulatory compliance – mitigates the risk of
impacts on the environment, legal disputes and misalignment with the benchmark
international standards underpinning best practices.

Presence of regulations and incentives
aimed at promoting sustainable projects
and investments for social and economic
development in the areas where the Company operates

Enel conducts advocacy activities both directly and through industry associations
to accelerate the pace of the energy transition and stimulate the adoption of regulations that promote sustainable investments, such as grid upgrades and digitalization, renewable energy development, storage, and end-use electrification.

Higher revenues thanks to shifts in consumer behavior towards more sustainable,
electrified and digitalized solutions

In line with the objectives of the Paris Agreement and the framework outlined by theEuropean Community, Enel wishes to support customers in the electrification process through offers that increasingly meet their needs. With this in mind, it is more
and more important for the various customer groups to gain awareness of how theirconsumption and purchasing behavior can contribute to achieving sustainability
goals. Therefore, the Enel Group provides specific customer groups (B2C, B2B, B2G)
with tools and materials to supply information about their consumption, how to reduce it, and what the opportunities are when shifting toward greater sustainability.

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56

DURATION(1) OPPORTUNITY MANAGEMENT

Duration:

Sustainability Report 2023

Short term

Medium termLong term

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

MATERIAL TOPIC (1st LEVEL)

MATERIAL TOPIC (2nd LEVEL)

MATERIAL TOPIC (3rd LEVEL)RELEVANT GRI

Sustainable supply chain

Qualification of suppliers andcontracting firms

Qualification of suppliersand contracting firms basedon occupational health andsafety, human rights, andenvironmental impact criteria• GRI 204-1: Proportion of expenses
paid to local suppliers

Tendering of suppliers andcontracting firms

Preparing calls for tenders
aimed at promoting sustainable
practices

Engaging local and global
communities

Listening to communities

Appendix• GRI 308-1: New suppliers selectedusing environmental criteria• GRI 414-1: New suppliers selectedusing social criteria• GRI 414-2: Negative social impacts inthe supply chain and actions taken• GRI 413-1: Operations with local
community engagement

Dispute management andgrievance mechanisms• EU22: Number of people physicallyor economically displaced andcompensation, broken down by
project type
• DMA EU (former EU20): Approachto managing the impacts ofdisplacement
Governance and advocacy for natureand climate

Governance and advocacy fornatureGovernance and advocacy forclimateEconomic value creation

Customer centricity

SASB• GRI 2-27: Compliance with laws andregulations

Environmental policies
Climate policyLong-term value distribution
strategy

Community investments• GRI 201-1: Direct economic value
generated and distributed

Quality of customer relations

Customer awareness of
efficient and sustainable use ofenergy• GRI 417-1: Labeling requirements andproduct and service information

ESG priority topics for stakeholders

IRO related to human rights

SASB• DMA EU (former EU23): Programs,
including those in partnership withthe government, to improve or
maintain access to electricity andcustomer service

Material topic from a financial point of view for
SASB (Sustainability Accounting Standards Board)

Stakeholder engagement and materiality analysis

57

POTENTIAL MATERIAL RISKS
MATERIAL RISKDURATION(1) RISK MANAGEMENT

Inadequate management of cyber security
systems by the organization to avoid reputational, legal, and economic damage due
to cyber attacks, which result in the loss of
sensitive data of employees, customers, andsuppliers

The Enel Group has established and implemented an operating model and Process
Framework for integrated cyber security risk management. The Framework is based on
two essential principles: the “risk-based approach” and “cyber security by design”. The
first requires cyber risk assessment to be a prerequisite for strategic decisions and forthe development and secure maintenance of all assets of the organization (e.g., people,
infrastructure, platforms, and technology solutions). The second, cyber security by design,
ensures that cyber security principles are adopted from the outset and throughout
the entire lifecycle of solutions, services and infrastructure in all areas: IT (Information
Technology), OT (Operational Technology) and IoT (Internet of Things). This approach isessential in an environment marked by the widespread implementation of digital tools andsolutions, which are fundamental to enhancing the entire system but which also continuallypresent new challenges.
Therefore, although the Enel Group is strongly committed to measures to strengthen the“Cyber Security Posture”, there is an awareness that cyber risk is strongly characterized
and influenced by exogenous, unpredictable factors, such as cyber attacks, which are
increasingly frequent and sophisticated and which could negatively affect business
operations, even with defensive processes and technologies.

Increased production costs due to excessive
volatility or rising costs of raw materials

Enel carries out monitoring and forecasting activities to simulate and test businessinitiatives under different price scenarios. Moreover, to manage price risk, Enel adopts
hedging strategies and strategically manages suppliers in order to be proactive negotiators.

Higher costs due to fluctuations in interest
rates and monetary exchange rates, as well as
rising inflation

The macroeconomic landscape has changed rapidly, with prolonged periods of elevatedinterest rates, diminished economic growth prospects, and a swiftly rising cost of capital.
In light of these exogenous factors, the Enel Group is focusing on flexibility and resilience,
cost efficiency, and competitiveness.

Lower revenues due to poor customer retention and satisfaction due to low quality service delivery

Enel has implemented several tools to measure customer satisfaction, includingtransactional, relational, and in-app surveys. After analyzing the results, concrete actions
are put in place based on customer feedback, which aim to resolve critical issues andboost satisfaction and loyalty over time. “Close the loop” is one example of an initiative thatinvestigates the causes of negative feedback on customer satisfaction surveys so as toresolve any dissatisfaction and prevent further issues in the future.

Inadequate initiatives from institutions to
help accelerate the energy transition (including excessive bureaucracy), which results inuncertainty and slowdowns for the Company’s investment in renewable and low-carbon
technologies

Energy transition trends are not the same in all countries. With regard to the spread ofrenewable energy sources, the penetration of electric vehicles and the adoption of greenhydrogen, there are often poor or ineffective support mechanisms along with unsuitable
market structures. The Enel Group’s strategic development guidelines were drawn up
taking into consideration the evolving external environment, the regulatory and normative
framework, and the competitive landscape.
At the same time, Enel takes a transparent, collaborative and proactive approach toinstitutions and local regulators in order to promote initiatives and regulations that support
the energy transition.

Lower revenues due to low uptake of energy-efficient products and services as a resultof the absence or inadequacy of the regulatory framework of incentives and regulations

For Enel, the regulatory framework of incentives and regulations is crucial to achieving
the goals of the Paris Agreement and the European Community, which tie in with its own
business objectives for decarbonizing customers. Achieving these goals requires a clear
and favorable regulatory framework, which provides incentives for the installation ofrenewable energy generation equipment, private charging stations, products for energy
efficiency, and thermal insulation, while any shortcomings could put their achievement at
risk.

(1)

Duration:

Short term

Medium term(2) “-” is reported where the material topic is not currently covered by a specific GRI

58

Sustainability Report 2023

Long term

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

MATERIAL TOPIC (1st LEVEL)
Digital transformation

SASB

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

MATERIAL TOPIC (2nd LEVEL)

MATERIAL TOPIC (3rd LEVEL)RELEVANT GRI

Cyber security

Strategy and management
models for cyber security

-(2)

5

Appendix

Cyber security culture

Economic value creation

Long-term value distribution
strategy

Operating costs of the business(including payments to suppliers)• GRI 201-1: Direct economic value
generated and distributed

Economic value creation

Capital balance and soundness

Capital structure balance• GRI 201-1: Direct economic value
generated and distributed

Quality of customer relations

Effective and fair relationship withcustomers• GRI 417-1: Labeling requirements andproduct and service information

Customer centricity

SASB• DMA EU (former EU23): Programs,
including those in partnership with thegovernment, to improve or maintain
access to electricity and customer
service• DMA EU (former EU24): Practices toaddress language, cultural, low-literacy,and disability-related barriers, accessto and safe use of electricity, andcustomer support services
Climate change

Mitigation: reducing direct GHG
emissions (Scope 1)
SASB

Customer centricity

SASB

Solutions dedicated to customerneeds

ESG priority topics for stakeholders

Renewable capacity development(solar, wind, biomass, geothermal,
mini-hydro)• GRI 305-1: Direct greenhouse gas (GHG)
emissions (Scope 1)

Availability of energy-efficient
products and services• GRI 417-1: Labeling requirements andproduct and service information

IRO related to human rights

SASB• EU1: Installed capacity, broken down byprimary energy source and regulatory
regimeMaterial topic from a financial point of view for
SASB (Sustainability Accounting Standards Board)

Stakeholder engagement and materiality analysis

59

MATERIAL RISKDURATION(1) RISK MANAGEMENT

Reputational damage due to a failure in the
Company’s supply chain to respect workers’
rightsSince 2013, the commitment against the use of any kind of forced or compulsory labor,
as well as all forms of slavery and human trafficking, has been formally defined in Principle
2.1.1 Rejection of forced or compulsory labor and child labor of the Human Rights Policy.
For this reason, the Group is also asking its suppliers to commit to best practices on humanrights and the impacts of their activities, including working conditions, occupational healthand safety, environmental responsibility, and respect for privacy by design and by default.
The selection of the best suppliers and the execution of contracts according to the highest
standards of sustainability are guaranteed by the analysis and monitoring of the entire
procurement process:• during the qualification stage, potential suppliers are assessed according to criteria
related to human rights (including occupational health and safety) and the impact of
their activities on the environment;• during the tender stage, there are specific mandatory sustainability requirements andreward factors (sustainability K) to help promote responsible practices at a systemiclevel;• throughout the term of the contract, Enel monitors compliance with the requirements
and reward factors (Supplier Performance Management).

Increase in extreme weather events (e.g., cyclones, droughts, floods, storms, heat waves
and fires) due to climate change, resulting indamage or reduced efficiency of power generation and distribution plants and their supporting infrastructure, causing capacity to be
downgraded, operations temporarily stopped
or shut down completely

Enel implements procedures, policies, and interventions to manage adverse events, bothto boost the resilience of the infrastructure and the business and to improve its ability
to quickly restore plant and grid operating conditions. Enel has produced a catalog ofadaptation actions that aim to enhance the resilience of assets and their ability to respondto the possible effects of climate change. This catalog is updated cyclically as needed
and as analyses and solutions are refined, and currently includes more than one hundred
actions. Such as asset monitoring, weather forecasting and weather alerts, and assessing
the effects of different climate change scenarios. Based on this information, adaptationplans are implemented to boost resilience, both for existing assets and for those underconstruction.

Stricter and more stringent legislation on theperformance of activities, products and/or
services to reduce the environmental impact
on nature and local communities, resulting
in increased costs (e.g., fines, loss of licenses
and/or revenues or blocked assets)

To prevent potential risks from regulatory factors and changing legislation, the Enel Group
maintains intensive relationships with national and EU institutional bodies and majorinternational associations. Enel is proactive in removing/reducing all potential elementsthat could compromise its positive environmental and social impact. With this in mind,
Enel actively is supporting the work of the European Commission in the adoption of the
Action Plan “Towards Zero Pollution Ambition for air, water and soil – Building a HealthierPlanet for Healthier People”, by actively participating in the review process and promoting
the adoption of zero-emission technologies that generate benefits both globally, in termsof GHG reduction, and locally, in terms of air pollution reduction. Furthermore, Enel actively
supports the development of new technologies, such as electrification based on renewableenergy, to support other sectors and uses of energy, such as the transport sector or
heating and cooling in buildings. Lastly, in line with EU strategies for the restoration of
degraded soils, Enel is promoting a circular approach to the management of the areas
occupied by reusing and redeveloping brownfield sites, and by repowering and extending
the life of wind farms to limit land use. Enel supports this process also through participation
with Eurelectric on the Zero Pollution Stakeholder Platform.

Lack of skilled labor among members of thecommunity in which the Company operates

The Enel Group promotes training programs dedicated to the local communities in which it
operates, as well as training projects developed with local institutions for socio-economic
development. Enel supports reskilling/upskilling, technical training, job orientation,
provisions of school supplies and scholarships.

Regulatory changes that could have a negative impact on distribution activities or theoperation of the electricity system, leading to
a decrease in the remuneration of regulated
activities

The Enel Group conducts significant monitoring activities and undertakes the coordination
and advocacy actions needed to reduce the risk associated with regulatory changes that
could affect the remuneration of regulated activities.

Possible reputational impact due to high electricity tariffs in times of crisis

Unforeseen international events and geopolitical uncertainty – as has been the casein recent years – can have a major impact on the supply of raw materials needed for
power generation and, in turn, on customers’ electricity tariffs. Given that the reasonsfor such increases may not be completely clear to all customers, which may compromise
the Company’s reputation, Enel is continuing to pursue its close relations customers,
especially those in vulnerable conditions, by providing information so that customers
can take advantage of the relief available to them and be informed of the reasons for theincrease. Moreover, where possible, the Company offers customer-specific solutions to
mitigate the cost impact.

(1)

Duration:

Short term

Medium term(2) “-” is reported where the material topic is not currently covered by a specific GRI

60

Sustainability Report 2023

Long term

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

MATERIAL TOPIC (1st LEVEL)

MATERIAL TOPIC (2nd LEVEL)

MATERIAL TOPIC (3rd LEVEL)RELEVANT GRI

Sustainable supply chain

Contract execution

Promoting respect for just andfavorable working conditions andnon-discrimination in relations
with suppliers and contractors• GRI 414: Supplier Social Assessment

Adapting to extreme weather• GRI 303: Water and effluents

Climate change

Adapting to climate change

Appendix• GRI 407-1: Activities and suppliers
where the right to freedom of
association and collective bargaining
may be at risk

• GRI 304: Biodiversity• GRI 305: Emissions

SASB• DMA EU (former EU6): Management
approach to ensure energy availability
and reliability in the short and long term
• EU12: Transmission and distribution
losses as a percentage of total energy• DMA EU (former EU23): Programs,
including those in partnership with thegovernment, to improve or maintain
access to electricity and customer
service• EU28: Frequency of power
outages• EU29: Average duration of power
outageGovernance and advocacy for nature andclimateGovernance and advocacy fornature• GRI 2-22: Statement on sustainable
development strategy

Certified environmental
management system• GRI 2-23: Policy commitments

Environmental policies• GRI 2-24: Embedding policy
commitments

Engaging local and global
communities

Supporting the social andeconomic development ofcommunities

Employment development in theareas of presence• GRI 413-1: Operations with local
community engagement

Economic value creation

Long-term value distribution
strategy

Operating costs of the business(including payments to suppliers)• GRI 201-1: Direct economic value
generated and distributed

Solutions dedicated to customer
needs

Affordability of tariffs and flexibilityof payments• GRI 417-1: Labeling requirements andproduct and service information

Customer centricity

SASB• DMA EU (former EU23): Programs,
including those in partnership with thegovernment, to improve or maintain
access to electricity and customer
service

ESG priority topics for stakeholders

IRO related to human rights

SASB

Material topic from a financial point of view for
SASB (Sustainability Accounting Standards Board)

Stakeholder engagement and materiality analysis

61

MATERIAL RISKDURATION(1) RISK MANAGEMENT

Inadequate maintenance of distribution network infrastructure by third-party companies/
organizations, compromising the continuity ofenergy supply service

Enel, as a DSO (Distribution System Operator), follows the network code of the TSO(Transmission System Operator) that governs the countries in which it operates.
Enel constantly invests in network development, renewal and maintenance on theinfrastructure existing in all Countries, with the primary aim of improving the quality of theservice delivered and reducing the number and duration of outages.

Economic/financial losses, administrative
sanctions, court orders as a result of illegal or
unlawful conduct and violations of international, national or local laws or regulations

When performing its activities, the Enel Group is exposed to risks that could influence
its economic and financial results if they are not effectively monitored, managed andmitigated.
The Enel Group’s system of internal control and risk management (“SCIGR”) consists ofthe set of rules, procedures and organizational structures designed to identify, measure,manage and monitor the main business risks, in line with the Corporate Governance Code.
The Group has also set up a risk governance model based on certain “pillars”, as well asa homogeneous taxonomy of risks (“risk catalogue”) to facilitate their management
and organic representation (for further details, please refer to the “Report on corporate
governance and ownership structure” approved by the Enel SpA Board of Directors on
March 16, 2023).

Increased costs and reputational damage
due to air pollution emissions (other than CO2emissions) as well as waste generation andwater consumption caused by the delay in thecoal phase-out process

Enel has made a commitment to complete the decarbonization process of its entire value
chain by 2040, in line with the goals of the Paris Agreement (COP 21) to limit the average
global temperature increase to 1.5 °C. To this end, Enel has constructed a roadmap that
includes mid-term targets to 2030 (compared to the 2017 base year levels) certified by
the Science Based Targets initiative (SBTi) in line with the 1.5 °C pathway: in particular,
the Company has committed to 100% renewable energy generation by 2040 with anintermediate target of at least 80% of installed renewable capacity by 2030 and coalphase-out by 2027.

Increased costs and reputational damage
from biodiversity loss and degradation of
ecosystem services due to land occupation,
habitat fragmentation, and/or air, soil, andwater contamination during the construction
and operation of generation and distribution
assetsEnel’s strategic approach to biodiversity conservation aligns with the Kunming-Montreal
Global Biodiversity Framework, and commits to the goal of halting and reversing
biodiversity loss by 2030. Specifically, Enel is committed to applying the principle of the
mitigation hierarchy at all stages of the project, avoiding and reducing impacts on areas ofhigh biodiversity value and on ecosystem services, by reducing deforestation and habitat
transformation. Where it is not possible to avoid these impacts, Enel is committed tominimizing negative impacts by implementing rehabilitation and restoration measures, andas a last option, offsetting residual impacts.

Increased power generation costs due to water shortages caused by drought, increased
water demand, and regulatory restrictions

Enel also pays close attention to aspects of water resource vulnerability, by mapping andconstantly monitoring all production sites located in areas classified as at risk of water
scarcity (“water stressed areas”), identifying and pursuing the most suitable plant andmanagement solutions in each case. By developing meteo-climatic scenarios, particularlyon the effects of climate change, and medium- and long-term demographic scenarios,
variation in water resource availability and natural and anthropogenic water needs canbe assessed by mapping producibility for the plants as well as the potential economic/
financial risk to the organization.

Increased site maintenance costs due to landdegradation, causing instability and vulnerability of power plants and structural damage interms of integrity and safety

Enel implements procedures, policies, and interventions to manage adverse events, bothto boost the resilience of the infrastructure and the business and to improve its ability
to quickly restore plant and grid operating conditions. In particular, actions are carriedout on specific sites to monitor and manage this type of risk, such as: weather forecasts,
with warning systems to protect people and assets; hydrological simulations; land surveys(including with drones); real-time remote monitoring of power generation facilities andvulnerabilities through digital GIS (Geographic Information System) systems and satellite
measurements; specific activities to protect against soil erosion, such as matting – asoil stabilization solution that involves applying a mat or blanket of organic or synthetic
material to the soil surface to protect from erosive forces. This promotes germination andfacilitates the planting process.

(1)

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Performance 2023

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Appendix

MATERIAL TOPIC (1st LEVEL)

MATERIAL TOPIC (2nd LEVEL)

MATERIAL TOPIC (3rd LEVEL)RELEVANT GRI

Resilient grids

Operational management of grids

Grid maintenance• DMA EU12: Transmission anddistribution losses as a percentage of
total energy

SASB• DMA EU (former EU23): Programs,
including those in partnership with thegovernment, to improve or maintain
access to electricity and customer
service• EU28: Frequency of power
outages• EU29: Average duration of power
outageBusiness conduct and ethics

Legal disputes• GRI 2-22: Statement on sustainable
development strategy

Legal proceedings• GRI 2-23: Policy commitment• GRI 2-24: Embedding policy
commitments• GRI 205-1: Operations assessed todetermine corruption risks• GRI 205-2: Communication and training
on anti-corruption regulations
and procedures• GRI 205-3: Confirmed incidents ofcorruption and measures taken• GRI 206-1: Legal actions relating toanticompetitive behavior, trust activities
and monopolistic practices• GRI 415-1: Political contributions
Air, water and soil quality

SASB

Reducing pollution

Reducing emissions into the air(excluding CO2)

• GRI 305-6: Emissions of ozonedepleting substances (ODS)• GRI 305-7: Nitrogen oxides (NOx),sulphur oxides (SOx) and other relevant
air emissions

Preservation of biodiversity andecosystems

Mitigation of impacts on natural
heritage
Soil management

Optimizing dependencies andopportunities of impacts on
ecosystem services• GRI 304: Biodiversity

Restoring degraded soils
Reducing land use

Water resources management

Responsible use of water

Managing water resource
availability• GRI 303-3: Water withdrawal

Reducing pollution

Protection, monitoring andremediation of soil, subsoil andgroundwater• GRI 304: Biodiversity

SASB

Air, water and soil quality

SASB

ESG priority topics for stakeholders

IRO related to human rights

SASB

Material topic from a financial point of view for
SASB (Sustainability Accounting Standards Board)

Stakeholder engagement and materiality analysis

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MATERIAL RISKDURATION(1) RISK MANAGEMENT

Increased costs and reputational damage due
to improper management of spills, violating
environmental regulations

Enel is committed to the continuous application of the most advanced technologies
available and best practices in order to prevent and minimize the potential environmental
impacts of its activities, using international standards as a benchmark even where therequired environmental protection is less stringent. Among the areas of prevention, thehighest level of attention is paid to the protection, monitoring and remediation of soil,
subsoil and groundwater in the areas where plants and generation and service facilities arepresent in all Countries. More generally, Enel adopts policies and operational proceduresfor timely management, communication and analysis of severe, significant and minor
environmental emergencies and incidents, as well as potentially significant emergencies
and near misses, in order to prevent and mitigate any possible impact by constantly
improving its environmental performance.

Increased costs and reputational damage due
to improper management of non-hazardous
waste, violating environmental regulations

The Enel Group works constantly to mitigate and reduce the potential environmental
impact of the waste management activities generated by its operations. To this end,
Enel has established global and Country-level targets, which translate into action plans at
individual plant and territorial unit level, with the aim of reducing the waste generated by its
operations, be it direct or contracted. Moreover, by adopting Group Guidelines on Waste
Management and using Integrated Management Systems throughout the Company withdedicated operating procedures, as well as local active monitoring and control tools such
as ECoS (Extra Checking on Site) inspections, Enel aims to ensure constant oversight andimprovement in waste management and in the prevention of accidental events that may
cause damage to the environment.

Increased costs and reputational damage due
to improper management of hazardous waste,violating environmental regulations

Enel has a long-established strategy to reduce hazardous waste from its operational
processes, thanks to its selection of technological solutions and procurement of chemicals
that can ensure the absence of hazardous elements in the final waste (as well as “substancesof concern” and “of very high concern”). This strategy has meant that waste classified ashazardous currently makes up a marginal portion of the Group’s total waste, which is mainly
tied to coal-fired thermoelectric processes and will therefore be reduced to zero with theplanned phase-out of the technology. In many cases, the hazardous classification is also
due to the preventive and precautionary decision taken by Enel to classify as hazardousby origin even waste that could potentially prove hazardous as a result of anomalous ortransitory operating conditions of the process of origin.

Increased costs, fines, reputational damage
due to non-compliance with environmental
regulations relating to water use and treatment

Enel’s active leadership role in the development and application of national andinternational environmental reference standards enables the Company to avoid possible
misalignments or violations by anticipating their organizational implications and adopting
actions and improvement goals inspired by environmental and social best practices. The
risk of possible environmental impacts, reputational damage or litigation relating to water
use and treatment is therefore prevented and mitigated. The widespread adoption of ISO
14001-certified Environmental Management Systems within the Group also ensures thepresence of operational and control policies and procedures dedicated to identifying
and managing the environmental risks and opportunities associated with this resource.
With the aim of identifying technological solutions to reduce water withdrawal andconsumption, special attention is paid to assets in areas of high water stress. The risk ofwater scarcity is also mitigated by the strategy to increase generation from renewablesources, such as wind and solar, which are not essentially dependent on the availability ofwater for their operation.

Increase in the number of non-occupational
diseases of workers and contractors, due toan inadequate health culture in the context inwhich the Company operates

The Enel Group supports various initiatives for its people to promote prevention and raiseawareness of the importance of mental and physical health and well-being, such as:• the psychological listening and support service to provide workers with a personalized
help program in an anonymous, free and confidential manner;• free flu vaccination campaigns to reduce the impact of influenza;• awareness campaigns on the importance of healthy eating and healthy lifestyles;• support with stopping smoking, and encouraging physical activity through shortinitiatives to be performed during working hours;• the option of preventive check-ups at either no cost or reduced cost for workers.

Increase in the number of workplace injuries
to workers and contractors, due to an inadequate social and cultural context on health andsafety issues

People’s health, safety, and mental and physical well-being are the most valuable assets tobe protected at all times of life, whether at work or at leisure.
The Enel Group therefore promotes various culture and awareness initiatives, such as:• Group safety campaigns targeted at workers and contractors;• awareness campaigns on cross-cutting risks that impact workers’ everyday work (e.g.,ergonomics, slips, etc.);• information and training on specific risks to workers (e.g., falling from height, electricalrisks, etc.);• training initiatives for workers on mindset change – safety culture;• safety meetings with suppliers to share best practices;• establishing the minimum contractual safety requirements (HSE Terms) during supplierqualification, contractor assessment, and consequence management;• establishing, monitoring and analyzing performance KPIs relating to worker andcontractor safety to identify improvement actions (e.g., improvement of work methods
and equipment through technology/innovation, digitalization of processes, etc.).

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MATERIAL TOPIC (1st LEVEL)

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Performance 2023

MATERIAL TOPIC (2nd LEVEL)

MATERIAL TOPIC (3rd LEVEL)RELEVANT GRI

Air, water and soil quality

SASB

Reducing pollution

Discharge management• GRI 303-4: Water discharge

Waste

SASB

Non-hazardous waste

Non-hazardous waste fromoperations and maintenance(O&M)• GRI 306-3: Waste generated

5

Appendix• GRI 306-4: Waste not sent to landfill• GRI 306-5: Waste sent to landfill

Non-hazardous waste fromconstruction activities

Waste

SASB

Water resources management

Hazardous waste

Responsible use of water
SASB

Health and safety

Hazardous waste from operations
and maintenance (O&M)• GRI 306-3: Waste generated

Hazardous waste fromconstruction activities• GRI 306-5: Waste sent to landfill

Treatment, recycling and use ofwastewater• GRI 303-4: Water discharge• GRI 306-4: Waste not sent to landfill

Reducing water consumption

Worker health• GRI 403: Occupational health and safety

Promoting worker health• GRI 410: Safety practices
SASB

Health and safety
SASB

Health and safety of workers ofcontractors operating on Enelsites

• GRI 403: Occupational health and safety

Promoting worker healthManaging and monitoring worker
safety• GRI 410: Safety practices

Promoting a safety culture among
workers
Managing and monitoring
contractor safety
Promoting a culture of safety
among workers of contractors
who operate at Enel sites
Care for the mental and physicalsafety of workers

ESG priority topics for stakeholders

IRO related to human rights

SASB

Material topic from a financial point of view for
SASB (Sustainability Accounting Standards Board)

Stakeholder engagement and materiality analysis

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Appendix

TOPIC VIEW

4.
PERFORMANCE
2023● Business drivers
Toward 100% renewable generation.
A safer, more resilient and digitalized power grid.
Sustainable cities and communities and electrification of uses.
● Climate change, nature and circular economy
Zero emissions ambition by 2040, with a certified roadmap
and promoting a just transition.
Protection of natural capital, through the reductionof impacts, the recovery of habitats and sharing with
communities the opportunities of ecosystem services.
Circular economy to reduce the consumption of fossil fuels
and raw materials.
● People, health and safety
People are the protagonists of sustainable progress, notonly employees, but also customers, suppliers, communities,
institutions, and the financial community.
Enel's commitment is: zero injuries each day, every day.
● Governance, human rights and tax transparency
A solid governance model and respect for human rights inbusiness practices are the basis for sustainable progress.
Tax contribution and transparency support the creation ofvalue for communities.
● Innovation and digitalization
Monitoring the evolution of new technologies anddigitalization allow an acceleration of sustainable growth.
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BUSINESS DRIVERSDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

MATERIAL TOPICS:

BUSINESS DRIVERS• Climate change• Resilient grids• Electrification of uses
• Economic value creation• Toward 100% renewable generation• A safer, more resilient and digitalized
power grid
• Electrification of uses

Enel integrates sustainability into the business to create a balance between both Company and local needs throughout the value
chain, driving the energy transition in a direction that is fair and inclusive. With this approach, grids play a key role in being able tofully integrate renewable energy sources and support the transformation of customers’ energy use in homes, cities, and industry.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETS

MAIN
SDGs

DEVELOPMENT AND MANAGEMENT OF RENEWABLES

Development of additional renewablecapacity and reduction of thermal
capacity
GHG free production on total(% of total generation)(3)Sustainable Construction Site
Monitoring the effectiveness of the
adoption of sustainable practices (no.
practices adopted/no. practices definedin the CSV Plan)

4 GW of new consolidated
installed renewable capacity(1)Reduction of thermal capacity
by around 5.1 GW compared
to 2022
75% GHG free production
96% renewable construction
sites(4)82% hydroelectric, geothermal
and thermal construction sites

73 GW of renewable capacity
by 2026(2)7

13

86% GHG free production in
2026

7

13

95% renewable construction
sites(4) in 2024
85% hydroelectric, geothermal
and thermal construction sites
in 2024

8

12

IMPROVEMENT AND DEVELOPMENT OF GRIDS
End users with active smart meters digitalized grid customers (5)45.2 mil (64.3%)

71% in 2026

9

11

SAIDI(6)218 min(7)161 min in 2026(8)

7

9

Italy

4.7%

4.7% in 2026

7

9Europe(9)5.7%5.4% in 2026

7

9Grid losses:

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)

Including managed renewable capacity and BESS (Battery Energy Storage System), in 2023 5.3 GW of installed capacity has been achieved (of which 934
MW BESS).
Includes ownership, partnership, stewardship and BESS.
Includes managed capacity.
Except hydroelectric and geothermal.
Of which 28.7 million second-generation smart meters in 2023.
Target included in the remuneration plan as a gate.
Indicator subjected to reasonable assurance.
Target has been redefined with regard to the scope of core countries; it is therefore not comparable with the 2023 result.
The figure includes Italy and Spain. In 2023, Romania is included until October 30th.

Goals

New

68

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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2023
RESULTSACTIVITIES

4

Performance 2023

2024-2026
TARGETS

5

Appendix

MAIN
SDGs

TECHNOLOGIES AND SERVICES FOR CUSTOMER ELECTRIFICATION
Digitalization of services formunicipalities (YoUrban platform)

4,500 connected municipalities

4,800 connected municipalities
in 2026

9

11

SUSTAINABLE FINANCE
Investments (Capex) aligned with
European taxonomy(10)84.8%>80% in the period 2024-2026

Sustainable sources of financing(sustainable debt/total gross debt)

64%~70% in 2026

13

7

13

(10) Target included in Sustainability-Linked financial instruments.

﻿69

BUSINESS
DRIVERSThe fight against climate change is the main challengeof our century and for Enel, as a global player in the energy market, it is one of the pillars of its short and longterm strategy. The fundamental elements are continuous
collaboration with stakeholders and a clear and solid decarbonization roadmap certified by the Science Based
Targets initiative (SBTi) and aligned with the objectives of
the Paris Agreement (COP 21) to limit the average global
temperature increase to below 1.5 °C.
Specific strategic actions have been defined to support this roadmap, which include phase out of coal-fired
generation by 2027, subject to approval by the relevant
authorities(1), which will enable the achievement of 100%
renewable generation by 2040. The Group also intends toexit gas sales to end customers by 2040, promote enduse electrification and ensure that 100% of electricity soldis derived from renewable sources by 2040.
In an increasingly complex context, regulated businesses are fundamental to the Group’s strategy to improve
service quality and resilience, as well increase the focus
on networks and therefore benefit from favorable regulatory frameworks. Investment choices in renewables will
be more selective, aiming for a positioning that maximizes returns and mitigates risks. Finally, the Group plans to
optimize its customer portfolio and end-to-end processes, increasing efficiency in the process of acquiring andmanaging customers and improving customer retention
through integrated offers. The Group confirms that it intends to focus its investments on six core countries andespecially where it can leverage an integrated position,
specifically Italy, Spain, Brazil, Chile, Colombia and theUnited States.

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70

A strategy that promotes the achievement of the UN Sustainable Development Goals and in particular SDGs 7 (“Affordable and clean energy”), 9 (“Industry, innovation andinfrastructure”), 11 (“Sustainable cities and communities”),
and SDG 13 (“Climate action”) (see table on next page).
Enel integrates sustainability into the business in order tocreate synergies between the Company’s needs and thoseof the areas where it operates, throughout the value chain,by adopting models, in both generation and distribution,that increase and foster collaboration with communities,
generating efficiencies and positive impacts in social, economic and environmental terms, particularly by promoting
and applying an innovative and circular approach.
In particular, circular economy focuses on reducing theconsumption of non-renewable resources, maximizing thevalue of those already used and of the goods produced,
integrating sustainability from asset design to end-of-life,
particularly through innovative solutions and material recycling and reuse practices, thus allowing the pressure on
the demand for critical raw materials and technologies tobe reduced.
Innovation initiatives continue with a view to finding advanced solutions that support the business, focusing on
resilience and operational excellence.
In every activity, the Group is committed to protecting thehealth and safety of people, including through new technologies for accident prevention, worker empowerment
and strengthening the culture of safety.

As far as the conversion of coal-fired plants is concerned, the Group will evaluate the best available technologies, based on the needs indicated by the
distribution network operators.

Sustainability Report 2023

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ENEL’S CONTRIBUTION

SDG 13.2

Integrate climate change measures
into national policies, strategies andplanning

Develop quality, reliable, sustainable
and resilient infrastructure, including
regional and trans-border infrastructure,
to support economic development
and human well-being, with a focus onaffordable and equitable access for all

SDG 9.4• Reduction in Scope 1 GHG emissions
intensity relating to Power Generation:
160 gCO2eq/kWh(-56.2% vs 2017)• Exit coal-fired generation by 2027
subject to authorization from thecompetent authorities• Reduction in Scope 1 and 3 GHG
emissions intensity relating toIntegrated Power: 168 gCO2eq/kWh(-49.3% vs 2017)• Exit from gas sales to end customers
by 2040 and 100% sales of energy fromrenewable sources by 2040

• Reduction in Absolute Scope 3 GHG
emissions relating to Gas Retail: 16.8
MtCO2eq (-33.5% vs 2017)• Reduction of additional absolute GHG
emissions (Scopes 1+2+3) Roadmap
2030: 11.9 MtCO2eq (-48.6% vs 2017)• 68.2% consolidated renewablecapacity• 4.0 GW of new consolidated installed
renewable capacity(1)• 55.5 GW of consolidated renewablecapacity(2)• 75% of GHG free production (including
managed capacity)

A safer, more resilient and digitalized
power grid

• 218 minutes SAIDI (System Average
Interruption Duration Index)• Digitalization, resilience andimprovement of grid quality to fully
integrate renewable energy sources
and support the transformation ofcustomers’ energy consumption inhomes, cities, and industry• 9.6 GW demand response• 45.2 million end users with active
smart meters(3)• 113.4 MW Storage Behind The Meter(4)Upgrade infrastructure and retrofit
industries to make them sustainable,with increased resource use efficiency
and greater adoption of clean andenvironmentally sound technologies andindustrial processes, with all countries
taking action in accordance with theirrespective capabilities• Flexibility of networks to allow
openness to the participation of all
those involved in electrification, andto connect millions of users andprosumers

SDG 11.2

Sustainable cities and communities andelectrification of uses

• 24.3 thousand public owned charging
points(5)• Offering innovative products andservices to accompany customers
on the path of clean electrificationand transformation of energy
habits, in order to make electricity
from renewable sources increasingly
accessible and widespread in homes,
businesses and public administrations,
supporting small and large
municipalities toward a smart city model• 3.26 million public lighting points

Provide access to safe, affordable,
accessible and sustainable transportsystems for all, improving road safety,
notably by expanding public transport,with special attention to the needs ofthose in vulnerable situations, women,children, persons with disabilities andolder persons

SDG 11.3

Enhance inclusive and sustainableurbanization and capacity forparticipatory, integrated and sustainablehuman settlement planning andmanagement in all countries

13
(1)
(2)
(3)
(4)
(5)

Appendix• Development of new capacity fromrenewable sources to have a portfolioof 100% renewable generation by
2040, also thanks to the exit fromthermal generation by the same year

• Decarbonization of the generation mix,
with the progressive development of
renewable energy, taking advantage ofthe hybridization of renewables withstorage solutions, and the concomitant
exit from electricity generation fromthermal generation capacity

SDG 9.1

52023 RESULTS

Towards a 100% renewable generation

Increase substantially the share of
renewable energy in the global energy
mix

Performance 2023

ACTIONS• Enel Capex Plan fully aligned with thetargetSDG 7.2

4

7• 4,500 municipalities connected on
the YoUrban platform• Support for distributed generation in
the territory, through self-production
and the development of energy
communities, with a further commitment
to promote the development of anincreasingly advanced and flexible publicand domestic charging infrastructure

9

11

>90%

Capex aligned with SDGs
in the period 2024-2026

Including managed renewable capacity and BESS in 2023, 5.3 GW of installed capacity has been achieved (of which 934 MW of storage with batteries).
Including managed renewable capacity and BESS in 2023, 63 GW of installed capacity was reached.
Of which 28.7 million second-generation smart meters in 2023.
The overall storage figure at December 31, 2023 was 1,730 MW.
It should be noted that the figure shown, if also including the charging points of companies operated in joint ventures, would be 25,337 as of December 31, 2023.

Business drivers

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Towards a 100% renewablegeneration
EU1

EU2

Power generation plays a key role in significantly reducing global greenhouse gas emissions, and technological development, particularly in the field of renewable energy, is allowing an acceleration of this scenario.
Enel’s new Strategic Plan envisages 73 GW of installed renewable capacity(3) by 2026, compared to 63 GW in 2023,
with the goal of achieving 78% of renewable capacity on total(4) by 2026, thanks to more than 12 billion euros of grossinvestment, which is about one third of the total planned
investments over the plan period. The share of GHG freeproduction(5) will reach 86% by 2026 (75% in 2023).
To increase plant efficiency and reduce generation costs,
repowering will be leveraged along with storage to improvethe electricity system flexibility and load management. The
volume of energy generated using renewable sources depends on several different variables, which means that it is
not constant over time. This can lead to excess generation
during specific hours of the day or excessive variability, particularly due to weather conditions. Storage systems allow
the energy generated by the plants to be stored and returned to the grid when needed, for example, to cope withpeak demand.
As part of this decarbonization path, Enel has launchedsite repurposing/regeneration projects in Europe and Latin America, aiming to enhance the value of industrial assets by giving thermoelectric power plant sites a second
life through redevelopment and new development projects
based on the key principles of the circular economy andsharing with local communities and institutions. Enel wants
to enhance the energy potential of the sites with both renewables and the technologies needed for the energy transition, including Battery Energy Storage Systems (BESS) andphotovoltaic panels. It is also working with external developers and local stakeholders to develop additional initiatives inareas not used for energy purposes that will create socialand economic benefits.
As part of the Group’s commitment to a just transition,
specific upskilling and reskilling programs are developed
for people in the Company affected by the evolution of thebusiness, and suppliers are involved in various initiatives tosupport their retraining and diversification.

127.0 TWhCONSOLIDATED GENERATION FROMRENEWABLE SOURCES
112.4 TWh in 2022(2)+13.0%

Below are some examples of these initiatives:• Italy– Porto Tolle: construction of a tourist village by a third
party;– Brindisi Nord: implementation of an integrated logistics hub by a third-party project for the renewablesupply chain;– Brindisi Sud: hybrid upgrading of energy projects
and scouting for new innovative third-party projects;– La Spezia: new integrated energy hub with energy
projects and complementary projects with third parties also on the renewable supply chain;– Livorno: creation of a logistics hub; review of urban
zoning for “commercial” use currently under way;
– Bari: implementation of industrial/handcraft redevelopment projects on behalf of third parties;– Montalto: integrated program of interventions under
way to obtain the necessary urban zoning changes
for the development of the area, including throughthird-party development (photovoltaic tracker factory) to supplement energy projects;• Spain– As Pontes, Litoral, Compostilla, Alcúdia: ongoingcommitment to research and implementation of
new initiatives to repurpose the facilities and RES in
the affected areas;– Teruel: Coal2RES internal redevelopment and social
development, training, new projects in the industrial,commercial and tourism sectors for the whole area;• Chile– Tarapacá: gradual transformation of the site into thefirst industrial hybrid area in Latin America throughredevelopment of the areas with third-party projects
in logistics, reuse of assets for water and energy
management and disposal, and development of newenergy projects. Furthemore, as part of the current
preparations for the final demolition of the plant,
following receipt of all necessary permits, the power
plant is an example of conservation and protectionof native habitats and species, being located near a
Priority Site for Biodiversity (see the “Roadmap towards natural capital conservation” chapter).

(2) Excludes managed capacity. The figure is equivalent to 61% of the total.
(3) Includes consolidated capacity (ownership and partnership), capacity under stewardship and BESS. As of the end of 2023, renewable generation accounted for 55.5 GW of consolidated installed capacity (equivalent to 68.2% of net installed capacity), including 4 GW of new consolidated renewable capacity
installed during the year.
(4) Includes managed renewable capacity and BESS. The figure is equivalent to 71% in 2023.
(5) Includes production from managed capacity.

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Sustainable management models are applied to the entirety of the assets under development and operation,and throughout the entire life cycle (Development, Design & Construction, Operation & Maintenance, Decommissioning), from site design to construction, from plants
operation to their dismantling. The aim is to identify risks
and potential environmental and social impacts on plants
and the territory, mitigating their effects through the useof sustainability practices, including, for example, the useof local labor, maximization of recycling of waste produced, reduction of water consumption and CO2 emissions, as well as performance monitoring through measurement indicators and synthetic indices.
Among the latter, a specific indicator, the Sustainable
Design Index (SDI), has been defined and tested for thedesign and construction phase, which allow the potentialsocial, environmental, and contextual risks to be assessed
for new projects, from the design phase onwards, tracking
the effectiveness of sustainability actions aimed at reducing them. For operating plants, the Sustainable Plant Index (SPIN) has been defined which summarizes, in a single
indicator, the performance of power plants with respect
to the most relevant environmental (waste, water, energy,

3Sun Gigafactory: the future of energy
takes shape in Catania
A hub of technological excellence
for Italy’s energy independence

The 3Sun photovoltaic module factory in Catania,
which was established in 2010 and has growncontinuously, is preparing to become a true
gigafactory, with annual production capacity thatwill grow 15-fold, from the previous 200 MW to 3
GW, becoming the largest photovoltaic panel factory

4

Performance 2023

5

Appendix

biodiversity) and social aspects, thus making it possible topromote the most virtuous plants to be taken as an example, while at the same time identifying the less virtuous
ones on which to intervene, focusing actions on the specific areas of impact.
In 2023, the Sustainable Design and Construction Sitemodel was applied at all construction sites, with 82% of
the sustainable practices envisioned under the model adopted at hydroelectric, geothermal, and thermal sites and
96% at the remaining renewable technologies sites(6).
With the aim of reducing dependence on raw materials,
raising market efficiency standards, and improving sustainability at the same time, Enel is promoting greater
supply chain diversification of key technologies for thetransition. In particular, in April 2022, Enel Green Powersigned a subsidized loan agreement with the European
Union for the transformation of 3Sun into a solar panel
gigafactory in Catania, Sicily (Italy), which will become Europe’s largest factory for the production of high-performance bifacial photovoltaic modules. The gigafactory will
make a significant contribution to the growth and maintenance of a solar supply chain in Europe.

in Europe. The project is funded in part by the EU
Innovation Fund, which identified TANGO, i.e., iTaliAN
Giga factOry, as one of seven selected initiatives, andby Italy’s National Recovery and Resilience Plan (NRRP).
3Sun will enable the relocation of PV industrial value
and strategic technological know-how within the
territory of the EU, stimulating economic growth inSicily through the creation of direct jobs and indirect
employment opportunities.

(6) Data refer to the number of sustainability practices adopted/number of practices defined in the CSV Plan.

Business drivers

73

A safer, more resilient anddigitalized power grid
3-3

EU4

DMA EU (former EU7)

Grids have a key role to play in the energy transition, tofully enable the integration of renewable energy sources, which are intermittent in nature, and to support thetransformation of customers’ energy uses, in homes,
cities and industry. To this end, investments of 18.6 billion
euros are planned over the three-year plan period 20242026, half of which are earmarked for improving the quality of the grid, its resilience and digitalization, with morethan 30% dedicated to connecting new renewable sources. The Group is committed every day to improving service
quality and reliability and reducing the number and duration of outages (SAIDI equal to 161 min in 2026(8)).
An essential infrastructure that is increasingly exposed
to extreme weather events and the effects of climatechange: during 2023, Enel’s networks suffered significant
damage caused by violent weather events, including thefloods in northern Italy, where the Company intervened not
only to restore services, but also to support local communities in responding to the emergencies themselves.
Hence the importance of adapting the infrastructure to
extreme weather events in order to continue to provide
an essential service for people, businesses and communities, focusing targeted investments, improving the ability to respond to emergencies and maintaining a close
relationship with customers in the different Regions andCountries where the Group is present. All of this must also
be supported by a regulatory environment that attracts investment and makes this commitment economically andfinancially sustainable.
To this end, as part of the further development of theGroup’s Climate Change Adaptation Plan, the mapping ofacute climatic phenomena in areas where Enel has distribution activities and the preparation of a catalog of resilient solutions continued in 2023.
Digitalization and flexibility of networks are also needed
to manage more connections of small self-producers.
In a context of increasing distributed renewable generation across the territory, prosumers, i.e., energy producers

218 min 2.5 no. 67.3%
SAIDI
231 in 2022

SAIFI
2.6 in 2022

CABLINGRATIO(7)

-5.8%

-4.6%

60.7% in 2022 +10.9%

who are also consumers, can generate electricity for theirown use but also feed it into the grid, becoming energy
independent and contributing to renewable energy generation. During 2023, nearly 540,000 new producer andprosumer connections were activated globally, adding 7.9
GW of distributed renewable capacity connected to theGroup’s grids, reaching a total of about 68 GW of capacityfrom about 2 million producer and prosumer connections.
In the context of grids as well, a model of sustainableinfrastructure management has been defined which, in
addition to environmental aspects (an example of whichis the cabling ratio(7)), aims to maximize the shared value
generated during the design, construction and maintenance activities of the networks. The Sustainable Infrastructure project launched in 2022 is particularly focusedon primary substation construction work, where, in orderto standardize the adoption of sustainable initiatives, aSustainable Site Reference Model tool has been developed, which, integrated into digitalized systems, allows thenumber and type of solutions implemented at all active
sites or in the process of being opened to be monitored,
in order to measure their impacts based on four criteria:
decarbonization, social impact, environmental impact andcircularity.
With the aim of promoting operational efficiency andemissions reduction, the Open Power Grids association,founded in 2022, involved 35 members during 2023 (including grid operators, producers, research institutes andother industry players) in sharing and developing standards and technologies for grid components in order toaccelerate the adoption of more efficient, safe and sustainable electricity grids, for faster achievement of therequirements towards the zero emissions ambition. In
this regard, the 10 technical committees of Open Power
Grids released 13 documents included in the association’s
platform which will allow economies of scale to be developed in the acquisition of sustainable grid components.

(7) The index is determined by the ratio of the length of cable lines to the total length of lines, representing the reduction of lines in bare conductors, i.e.,
without insulation, the main benefits of which are the containment of plant cutting activity and a drastic reduction in the risk of electrocution and collision
for birds.
(8) SAIDI: System Average Interruption Duration Index. The 2026 target refers to the core perimeter.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

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Grid mining & Circular Economy activities continued in
2023 with the aim to reviewing the end-of-life management processes of grid assets from a more sustainable
perspective and identifying material recycling and reusepractices, through activities aimed at recovering precious
metals and other materials/devices from obsolete infrastructure, in order to minimize environmental impacts andmaximize positive social impacts and market value creation (see the “Circular economy” chapter).
The ambition to make grid infrastructures increasingly sustainable is pursued through constant research anddevelopment of innovative solutions that allow to rethinkassets, their management and their end of life. In particular, following a Sustainable by design approach, in 2023,
after the identification of the winning projects of the challenges for the innovative redesign of electrical assets, theactivities focused on designing new primary and secondary substations, as well as street boxes, the first examplesof which were installed in various cities (see the “Innovation” chapter). Circular projects focused on maximizing
the value of assets, also at the end of their life, include

4

Performance 2023

5

Appendix

the DPI New Life Project that E-Distribuzione is carryingout in Italy, which involves the recovery of expired or wornout Personal Protective Equipment to be transformed into
secondary raw material that can be used in the construction industry. In terms of grid resilience, a project has beenlaunched to boost connectivity on the grid in rural areas
through satellite communication, thus improving the quality of the service offered.
With the aim of increasing the safety of internal and external personnel and the effectiveness of power grid operations, key initiatives in 2023 enabled the identificationand initial testing of smart and sustainable tools and devices, more comfortable innovative clothing, and robotic
solutions to support network height maintenance activities. Additional projects involved drones that enable interaction with power grid components for maintenance andinstallation activities, as well as the use of artificial intelligence to support operations and reduce risks to people(for more details on the initiatives carried out, see the“Health and safety of people” chapter).

Business drivers

75

Electrification of uses
3-3

DMA EU (former EU24)

9.6 GW

24,281 no.

3.26 mil

DEMANDRESPONSE

PUBLIC OWNEDCHARGING POINTS(9)PUBLIC LIGHTINGPOINTS

22,112 in 2022

3.02 mil in 2022

8.5 GW in 2022

+13.1%+9.8%

In order to achieve the goals set out in Enel Group’s decarbonization roadmap, action has to be taken also on
indirect emissions by leveraging, in addition to suppliers,
the gradual change in customer habits in uptaking more
efficient technologies leveraging electricity as a carrier.
The energy sector is in the midst of a real revolution, witha strong push toward a new way of producing and consuming energy. Enel X Global Retail is playing a leading rolein this transition with an ecosystem of integrated, easyto-adopt solutions designed around the needs of people,
institutions and businesses, enabling customers to makemore efficient and conscious energy choices.
Solutions and initiatives include:• products for industrial and commercial enterprises,
to help them improve their energy performance andachieve Net Zero goals with technologies to use energy from renewable sources, such as solar panels, theelectrification of company car fleets, and the development of services for so-called “flexibility”, such as demand response (see the box on the Santa Rosa Water
project), the added value of which lies on the one handin contributing to network stabilization services and on
the other in transforming energy from a pure cost to asource of revenue for the end customer(10);• products for small and large municipalities geared

toward the development of a citizen-conscious smart
city model, more efficient, safe and accessible spaces,with services ranging from smart lighting to energy optimization for public buildings, from electricity and gas
supply to solar power generation – also with a view toestablishing a renewable energy community – to dataand image analysis tools for real-time monitoring of
infrastructure and active solutions in urban spaces
through the YoUrban digital platform;+7.8%• products for residential customers that combine savings,

comfort, safety and respect for the environment, and that
range from the supply of electricity, gas and fiber (see box“Enel Fibra Product of the year”) to electric mobility, fromcooling and heating technologies to photovoltaic systems
for self-generation, all through an integrated structure focused on offering a “bundle” of value-added products andservices – such as “Tutto Enel, è Formidabile” in Italy andSpain and “Todo Cuenta” in Spain – in order to simplify customers’ lives and respond to different consumption needs.

In this context, Enel is constantly striving to keep the customer at the center, aiming to improve their experience bycaring and listening in order to gain a better understandingof what they need, with the aim of increasing efficiency
and loyalty, taking full advantage of the potential of digitaltechnology for effective interaction. Increased customer
loyalty comes from providing a consistent high quality service that is above all personalized by type of customer (B2C,
B2B, B2G), so as to enhance the features of the Group’s activities and offer solutions that are more responsive to local
needs (see the “Customer centricity” chapter).
With the aim of fostering active management of theGroup’s customer portfolio, investments of around 3 billion euros gross have been planned between 2024 and2026, through geographic refocusing on Italy, Iberia andLatin America and organizational streamlining.
In addition to numerous value-added services, Enel X
Global Retail currently provides electricity and gas toaround 61 million customers, operates demand response
services with 9.6 GW of total contracted capacity, counts
24.3 thousand public charging points for electric vehicles
and 3.26 million public lighting points globally.
To ensure that this path is not only environmentally sustainable but also socially inclusive, the Group is committed to designing and developing innovative solutions that leverage the(9) Note that if the figure shown also included the charging points of companies operated through joint ventures it would be 25,337 as of December 31, 2023,
and 22,617 as of December 31, 2022.
(10) Demand response is a tool that allows direct action to be taken on energy generation and consumption levels to cope with supply reductions or peaks inmarket demand: industrial and commercial customers are paid for their availability, and the electricity grid benefits in terms of stability and greater integration of renewables.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

principles of circular economy and social inclusion, as well as
the enhancement of the territories. Enel is committed to ensuring access to electricity, even in the most remote areas,

4

Performance 2023

5

Appendix

and to providing quality service even to those in vulnerable
situations (e.g., due to age, physical condition, economic condition, etc.).

Enel Fibra Product of the Year

Enel Fibra was elected Product of the year
for innovation
Enel Fibra won the “Product of the Year” award in
the Fiber Telecommunications Services category for
new products and services released and marketed
between January 2022 and December 2023. The
Innovation Award is based solely on consumer voting.
Enel Energia entered the connection market with its
Enel Fibra product, which enables browsing with adownload speed of 1 Gigabit/s, no activation costs
and a modem included.

The modem also serves as a hub for Enel X Smart
Home devices, allowing access to all smart homefeatures without having to purchase an additional
network device.

Santa Rosa Water in California

Flexibility, a tool to benefit the power gridand businesses
Santa Rosa Water, a wastewater collection andtreatment company in Santa Rosa, California,
participates in the demand response program run by
Enel. At peak grid times, when the power supply is
insufficient to meet demand, the company receives a
notification and within 30 minutes implements its plan
to reduce power consumption. By turning off nonessential equipment, it can reduce its load by nearly
2,000 kW, which amounts to more than 50% of thesite’s peak power. As a result it helps the grid to avoid
blackouts and brownouts while at the same time

being remunerated for its availability: during 2023,
following dispatch orders received from the grid
operator, it offered an average of 1.3 MW of flexibility(with a peak of 2.6 MW recorded in March 2023),
earning a total remuneration of around 100,000 US
dollars for participating in the program.

Enel supplies energy to universities

Collaboration with academic institutions to
self-generate energy
In Spain Enel supports academic institutions to
reduce their energy needs through energy selfgeneration solutions using renewable sources, suchas solar.
For the University of Seville, Enel will build a 2.68 MWp
photovoltaic power plant capable of producing 4,073
MWh of electricity per year, covering nearly 33% of
the university campus’ energy needs.
For the University of Granada, Enel has proposed
an integrated solution that will see a 2.65 MWp

photovoltaic power plant generate 4,175 MWh ofelectricity per year, covering 27.4% of the energy
requirements of the various campus centers, and a
supply contract that will provide the university with
about 11 GWh per year.

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77

ZERO EMISSIONS AMBITION AND JUST TRANSITIONDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

MATERIAL TOPICS:

ZERO EMISSIONSAMBITION

nature and climate

HUMAN RIGHTS• Climate change• Governance and advocacy for

Enel is committed to achieving zero emissions by 2040, and developing a business model in line with the goals of theParis Agreement. The Group has therefore established a decarbonization roadmap for both direct and indirect emissions
throughout the value chain.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETS

MAIN
SDGs

ALIGNMENT TO THE 1.5 °C PATHWAY - ENEL’S ROADMAP FOR DECARBONIZATION TO 2040
160 gCO2eq/kWh(-56.2% vs 2017)(4)125 gCO2eq/kWh in 2026(-66% vs 2017)

The 2023 target of 148 gCO2eq/
kWh was not achieved(5).

72 gCO2eq/kWh in 2030(-80% vs 2017)

Reduction in Scope 1 and 3 GHG
emissions Intensity relating toIntegrated Power(1) (2) (6)168 gCO2eq/kWh(-49.3% vs 2017)(4)

135 gCO2eq/kWh in 2026(-59% vs 2017)

Reduction in Absolute Scope 3 GHG
emissions relating to Gas Retail(1) (2)16.8 MtCO2eq(-33.5% vs 2017)(4)Reduction in Scope 1 GHG emissions
Intensity relating to Power Generation(1) (2) (3)131373 gCO2eq/kWh in 2030(-78% vs 2017)20.0 MtCO2eq in 2026(-21% vs 2017)13

11.4 MtCO2eq in 2030(-55% vs 2017)
Reduction in additional absolute GHG
emissions (Scope 1+2+3)(1) (7)Target scope 2017-2030

11.9 MtCO2eq(-48.6% vs 2017)10.4 MtCO2eq in 2030(-55% vs 2017)13

MBA-PhD training about resilience andenergy transition in the countries where
the Group operates

204 people involved

Activity under review

13 17

(1)
(2)
(3)
(4)
(5)
(6)
(7)

2017 baseline in line with the 2023-2025 and 2024-2026 long-term SBTi certification issued in 2022. Refer to the 2022 Sustainability Report for further
details.
Target included in Sustainability-Linked financial instruments.
Target included in the remuneration plan as a gate.
Indicator subjected to reasonable assurance.
Due to the energy crisis, the intensity was slightly above the target of 148 gCO2eq/kWh. In absence of this effect, Enel would have been able to achieve an
intensity emission level well below the target. Enel has reconfirmed its commitment to decarbonization in both the short- and medium-to-long term, as set
out in the new 2024-2026 Strategic Plan.
Target included in the 2023-2025 and 2024-2026 long-term remuneration plan.
Figure relating to the 2017-2030 roadmap. Refer to the paragraph “Enel’s roadmap to decarbonization” for more details.

Goals

New

78

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

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Performance 2023

5

Appendix

ZERO EMISSIONSAMBITION AND
JUST TRANSITION
94.3 MtCO

160 gCO /kWh

168 gCO /kWh

TOTAL GROUPCARBON FOOTPRINT(SCOPE 1, 2 AND 3)SCOPE 1 GHG EMISSIONSINTENSITY RELATING TO POWER
GENERATIONSCOPE 1 AND 3 GHG EMISSIONSINTENSITY RELATING TO
INTEGRATED POWER

2eq

127.9 in 2022

-26.3%

2eq

229 in 2022

16.8 MtCO

68.2%

ABSOLUTE SCOPE 3 GHG
EMISSIONS RELATINGTO GAS RETAIL

RENEWABLE NET
CAPACITY OUT
OF THE TOTAL

2eq

20.6 in 2022

-18.6%

63.3% in 2022

Enel is committed to developing a business model in linewith the Paris Agreement (COP 21) goals in order to limit
the average global temperature increase to below 1.5 °C
and to achieve zero emissions by 2040, even aheadof globally established commitments, promoting the
key role of electricity as an energy carrier to drive thetransition to a Net Zero global economy by 2050.
In order to achieve zero emissions by 2040, Enel has
defined a decarbonization roadmap that covers both
direct and indirect emissions along the Group’s entire
value chain and consists of four targets certified by the
Science Based Targets initiative (SBTi), in line with limiting
global warming to below 1.5 °C.
Through its business strategy, the Group is committed
to establishing the drivers and investments necessary
to develop climate change mitigation and adaptation
actions throughout its value chain. Specifically, withregard to generation, the Group is committed topromoting the development of electricity generationfrom renewable sources and completing the gradualphase-out of fossil fuels. With regard to electricity
distribution, Enel is committed to digitalizing andimproving the network to increase its resilience toclimate phenomena. The Group plans to strengthen therole of distribution networks, which in the future will-30.1%

2eq

210 in 2022

-20.0%+7.7%

have to offer greater reliability due to the increased useof electricity and of green technologies, and will also
leverage the power of digitalization so that it can offer
inclusive and participatory platforms for all customers.
The challenge will be to facilitate access to enabling
technologies for electrification as well as new services
with high digital content.

Zero emissions ambition and just transition

79

Enel aims at driving its customers towards a decarbonized electrification of use. First, by increasing the weightof electricity use from renewable sources, Enel customers will reduce their indirect emissions (Scope 2 customer
emissions), and second, by developing a portfolio of products and services to accelerate the electrification of othersectors, such as transportation and construction, while
fostering energy efficiency solutions, customers will also
reduce their direct emissions (Scope 1 customer emissions).
There is a particular focus on climate change adaptation
strategy in order to increase the resilience of the assets
along the entire value chain, thereby limiting potentiallynegative impacts and guaranteeing a safe and sustainableenergy service in all the countries in which the Group operates. Adaptation solutions implemented by the Groupmay concern actions in the short-term, as well as longterm decision making such as the planning of investments
in response to climate phenomena.
Rising temperatures, changes in precipitation patterns
and extreme weather events also have a significant impact
on the natural environment, by affecting the ecosystems
resilience to climate change impacts and the ability tocapture carbon and generate benefits for society. Therefore, Enel’s business model takes a synergic approach to
tackling climate change and promoting the protection
and conservation of nature, which are essential factors in
its corporate strategy and everyday operations.
Aware of the social impact that its decarbonization strategy has, the Group has commited to a just energy transition, managing the environmental and social components
in an integrated way to ensure that on one is left behindin the transition in a climate neutral economy. In fact, awell-managed transition may help addressing the socioeconomic impacts of a changing climate while fostering
growth, generating net new jobs, and reducing inequality, thereby making a real contribution to achieving the UN
2030 Agenda.
Enel’s strong presence in the territory and its business enable a just transition roadmap based on ongoing dialogue
with all the affected stakeholders, including Enel people,
suppliers, financial and commercial partners, communities
in the area of influence of operations, and customers, inorder to raise their awareness and to provide a valuable
contribution from an ecosystemic standpoint.
To this end, Enel in 2019 signed the United Nations Pledge
letter on business commitment to a just transition andgreen and decent jobs, committing to:• promoting multi-stakeholder engagement and social
dialogue with institutions, workers’ and their representatives, respecting workers’ rights, encouraging social
protection (including pensions and health care), and80

Sustainability Report 2023

providing wage guarantees, in line with the core andoccupational health and safety standards of the International Labor Organization (ILO);• working with existing and new suppliers that respectthese standards, supporting them to increase theirresilience in a transitioning economy, while advocating and acting for diversification of the supply chain oftechnologies critical to net zero achievement;• contibuting to the social and economic development oflocal communities, particularly so in the case of thosemost exposed to the transition out from fossil fuels andinto green technologies;• supporting customers in their electrification journey
while at the same time allowing for an affordable, secure and green access to energy.
Furthermore, the Group confirmed its commitment inline with the Paris Agreement, during the United Nations
Framework Convention on Climate Change – COP 27. The
Group signed, jointly with other 270 corporates and civilsociety leaders, a declaration reciting “We stand readyto deliver a just transition and an equitable and inclusive future for all. We want to work with governments
in building an enduring legacy based on our collective
efforts to secure 1.5 °C”.
Therefore, the Group has defined concrete actions andplans also at country level, and consistently with theGroup’s strategy. Such plans are based on the objectivesof the Paris Agreement, the principles of the ILO's Just
Transition Guidelines and the United Nations Pledge letter,as well as on the public commitment set out in the Group
Human Rights Policy.
Enel is committed to carrying out its direct and indirectpublic advocacy actions in line with the Paris Agreement
and with the target of limiting global warming to within
1.5 °C. The Group pursues such goal by engaging with institutional stakeholders, trade associations, non-governmental organizations and the academic world, promoting
the Group’s perspective on public policies concerning climate change and leading the decarbonization and electrification process along a just transition pathway.
In addition, as a result of a solid corporate governance system that defines roles and responsibilities, Enel’s Board of
Directors and Management oversee the main climate-related decisions.
In order to ensure increasing transparency in its communications and relations with its stakeholders, Enel ispublicly committed to periodically reporting on its climate change activities and achievements in line withthe most widely recognized international reporting
standards of its stakeholders and consistent with theapproach introduced by the recommendations of the
Financial Stability Board’s Task Force on Climate-related

1

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2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

Financial Disclosures (TCFD)(1). It pays particular attention
to the new Corporate Sustainability Reporting Directive(CSRD) and the European Sustainability Reporting Standards (ESRS), which are an essential part of the Directive
and which include specific criteria on climate change reporting procedures. In addition to Global Reporting Initiative(GRI) and Sustainability Accounting Standards Board (SASB)

4

Performance 2023

5

Appendix

standards, Enel’s reporting process also incorporates other voluntary standards, such as IFRS S2 “Climate-related
Disclosures”, the first thematic standard of the ISSB which
requires companies to disclose information regarding their
exposure to climate-related risks and opportunities. The
Group also takes into account the reporting requirementsof key ESG ratings and institutional investors.

Enel’s roadmap to decarbonization
TCFD: Metrics & Targets
Enel’s decarbonization roadmap is built on four targets
validated by the Science Based Targets initiative in 2022
according to the criteria and recommendations for nearterm targets and to the SBTi Corporate Net Zero standard.
All targets are aligned to a 1.5 °C pathway, as defined by
the SBTi, according to IPCC scenarios and other international benchmarks. They also cover the Group various
business activities, namely the generation and distributionof electricity and the sale of electricity, gas and services
to end customers, and the various sources of direct andindirect emissions along the entire value chain (upstream
and downstream).

The four targets are the following:• Scope 1 GHG emissions Intensity relating to Power Generation. This target covers all greenhouse gas
emissions (including CO2, CH4 and N2O) deriving fromthe power generation process compared to the total
electricity generated by the Group (excluding the generation of electricity from pure pumped storage hydropower to avoid possible double counting in the Scope 2
emissions target). The targets for 2030 and 2040 were
defined according to SBTi’s “sectoral decarbonization
approach” (SDA) model, and predict a reduction, compared to 2017, of 80% and 100%, respectively.

SCOPE 1 GHG EMISSIONS INTENSITY RELATING TO POWER GENERATION (gCO2eq/kWh)-80%
vs 2017365

1.5 °C
246

160

218

140

192

130

-100%
vs 2017
1.5 °C

167

125

1.5 °C pathway in accordance with SBTi,based on IPCC scenarios, adjusted to Enel’sbaseline.
Short-term targets set in the 2022-2024 /2023-2025 / 2024-2026 Strategic Plans
respectively.
Medium- and long-term targets validated by
SBTi in 2022.

75

72
Zero Emissions
2017(1)

(1)
(2)

(1)

2023(2)

2024

2025

2026

2030

2040

Baseline 2017 in line with SBTi certification issued in 2022. For further details see the Sustainability Report 2022 (https://www.enel.com/content/dam/enelcom/documenti/investitori/sostenibilita/2022/sustainability-report_2022.pdf).
Actual figure. For further details, please refer to the paragraph “Enel’s performance in tackling climate change” in this chapter.

For details on the alignment of the structure of the chapter with the TCFD recommendations, please see the TCFD Content Index of the Sustainability
Report 2023.

Zero emissions ambition and just transition81• Scope 1 and 3 GHG emissions Intensity relating toIntegrated Power. This target is calculated by combining the Group’s direct GHG emissions (Scope 1, including CO2, CH4 and N2O) from power generation and
the Group’s indirect GHG emissions (Scope 3) fromthe generation of electricity purchased and sold to
end customers (which is an element of subcategory 3- Fuel and Energy Related Activities of the GHG protocol - Scope 3 standard), divided by electricity generation and purchases (excluding pure pumped storage hydropower). The targets for 2030 and 2040 were
defined according to SBTi’s “sectoral decarbonization
approach” (SDA) model and predict a reduction, compared to 2017, of 78% and 100%, respectively.

SCOPE 1 AND 3 GHG EMISSIONS INTENSITY RELATING TO INTEGRATED POWER (gCO2eq/kWh)-78%
vs 2017332

1.5 °C

233
183

168

135

1.5 °C pathway in accordance with SBTi,based on IPCC scenarios, adjusted to Enel’sbaseline.

-100%
vs 2017
1.5 °C

Short-term target set in the 2023-2025 /2024-2026 Strategic Plans respectively.

160

135

Medium- and long-term targets validated by
SBTi in 2022.

74

73
Zero Emissions
2017(1)(1)(2)

2023(2)

2025

2026

2030

2040

Baseline 2017 in line with SBTi certification issued in 2022. For further details see the Sustainability Report 2022 (https://www.enel.com/content/dam/enelcom/documenti/investitori/sostenibilita/2022/sustainability-report_2022.pdf).
Actual figure. For further details, please refer to the paragraph “Enel’s performance in tackling climate change” in this chapter.

• Absolute Scope 3 GHG emissions relating to Gas Retailin the end-user market. The targets for 2030 and 2040
were defined according to SBTi’s “absolute contraction

approach” and predict a reduction, compared to 2017,of 55% and 100%, respectively.

ABSOLUTE SCOPE 3 GHG EMISSIONS RELATING TO GAS RETAIL (MtCO2eq)-55%
vs 2017
1.5 °C

25.3
16.8

20.9

-100%
vs 2017
1.5 °C

Short-term target set in the 2023-2025 /2024-2026 Strategic Plans respectively
Medium- and long-term targets validated by
SBTi in 2022.

20.0
11.4
Zero Emissions

2017(1)2023(2)

(1)

2025

2026

2030

2040

Baseline 2017 in line with SBTi certification issued in 2022. For further details see the Sustainability Report 2022 (https://www.enel.com/content/dam/enelcom/documenti/investitori/sostenibilita/2022/sustainability-report_2022.pdf).
(2) Actual figure. For further details, please refer to the paragraph “Enel’s performance in tackling climate change” in this chapter.

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2Enel’s commitment
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3

Stakeholder engagement andmateriality analysis• Additional absolute Scope 1, 2 and 3 emissions. The

target covers (i) Scope 1 GHG emissions from vehicle
fleet and buildings, and losses of SF6 in distribution assets; (ii) all Scope 2 emissions; (iii) Scope 3 emissions
from the supply chain and all other activities related tothe purchase and transportation of fuels. The targets
for 2030 and 2040 have been defined according to
SBTi’s “absolute contraction approach” model, and include a reduction, compared to 2017, of 55% and 90%,
respectively. After 2040, a residual volume could remainof less than 2.5 MtCO2eq to be neutralized through carbon removal.

4

Performance 2023

5

Appendix

Furthermore, provision is made for various levels of coverage of supply chain GHG emissions for the 2030 and
2040 targets permitted by the SBTi, resulting in two decarbonization curves:a. the 2017-2030 roadmap covers specific supply chain
categories that accounted for 40% of supplier emissions in 2017;b. the 2017-2040 roadmap covers all supply categories
included in the 2017-2030 roadmap and additional
ones, which account for 54% of supplier emissions
in 2017.

ADDITIONAL SCOPE 1–2-3 EMISSIONS (MtCO2eq)
2017-2030 ROADMAP-55%
vs 201723.1
23.1

1.5 °C

11.9

2017-2040 ROADMAP

24.5
24.5

-90%
vs 2017
1.5 °C

13.5
10.4
Net Zero
Emissions<2.5
2017(1)2023(2)2030(3)2017(1)2023(2)2040(4)

Medium- and long-term targets validated by SBTi in 2022.

(1)
(2)
(3)
(4)

Baseline 2017 in line with SBTi certification issued in 2022. For further details see the Sustainability Report 2022 (https://www.enel.com/content/dam/enelcom/documenti/investitori/sostenibilita/2022/sustainability-report_2022.pdf).
Actual figure. For further details, please refer to the paragraph “Enel’s performance in tackling climate change” in this chapter.
The 2017-2030 roadmap covers specific supply chain categories that accounted for 40% of supplier emissions in 2017.
The 2017-2040 roadmap covers all supply chain categories included in the 2017-2030 roadmap and additional ones, which accounted for 54% of supplier emissions in 2017.

The four targets cover 92.2%(2) of Enel’s total reported direct and indirect GHG emissions in 2023, including 95.5%
of Scope 1, 100% of Scope 2, and 90%2 of Scope 3, asshown in the tables below, in line with the SBTi requirements.

(2) This value takes into account the 2040 targets. In contrast, for the 2030 targets, the coverage level for all direct and indirect emissions is 90.5% and thecoverage level for indirect Scope 3 emissions is 87%, both in line with SBTi requirements and calculated using the location-based model.

Zero emissions ambition and just transition

83

ZERO EMISSIONS AMBITION
Enel is committed to achieving zero emissions by 2040
and to developing a business model that is in line withthe objectives of the Paris Agreement (COP 21) to limit
the average increase in global temperatures to below

1.5 ºC. For this reason, the Group has developed adecarbonatization roadmap that covers both direct
and indirect emissions throughout the value chain. The
roadmap includes four targets certified by the Science
Based Targets initiative (SBTi) in December 2022 to bein line with the Net Zero Standard.

Scope 1 GHG emissions Intensity relating to Power Generation

GHG TARGET
Primary businessactivity

Electricity generation

Type of activity invalue chain

Direct• Customers and power consumers• Society and environment

Stakeholders
impacted or
involved
Sourcesof covered GHG(GHG Protocol)(1)

95% of Scope 1 GHG emissions(2)Time frame

Short term (2026)

Medium term (2030)

125 gCO2eq/kWh

72 gCO2eq/kWh% reduction on 2017
(SBTi baseline)

-66%

-80%

-100%

% reduction on
2023 (reporting
year)

-22%

-55%

-100%

Climate scenario

1.5 °C(3)GHG target

Primary drivers andactions• Gradual phase-out of coal-fired

capacity in 2024-2026, with planned
closure of the Federico II and
Torrevaldaliga Nord plants in Italy (with a
total capacity of about 3.6 GW).
• Investment of €12.1 billion to accelerate
the development of renewable energy
by installing 13.4 GW of new renewables
capacity (about 11.3 GW of which at
the consolidated level) in 2024-2026,
reaching 73 GW of renewables capacity(including BESS) by 2026.
• Continue the process of decarbonizing
electricity generation, with the shareof renewables plants capacity in the
Enel asset portfolio reaching 78% in
2026, with zero-emissions generation
amounting to 86% of the total, including
consolidated and managed generation.
• No use of carbon-removal technologies
to achieve the target.

1.5 °C (SBTi certified)• Continue the process of decarbonizing

electricity generation, with Groupinvestments raising the share of
renewables plants capacity in theasset portfolio to about 85% in 2030,
with zero-emissions generation
amounting to 90% of the total, including
consolidated and managed generation.
• Exit from coal-fired generation, which is
expected to take place by 2027 globally.
• No use of carbon-removal technologies
to achieve the target.

Long term (2040)
0 gCO2eq/kWh

Zero emissions

1.5 °C (SBTi certified)• Exit from the thermal electricity

generation business, achieving a 100%
renewable energy mix.
• No use of carbon-removal technologies
to achieve the target.

KPI achievement in 2023: 160 gCO2eq/kWh• About €5.9 billion invested in renewables in 2023.
• New installed consolidated capacity from renewables equal to 4 GW in 2023, bringing total consolidated capacity to 55.5
Results andmain actions in
2023

GW in 2023.

• Increase in consolidated generation from renewables equal to 13% on 2022, representing 61% of total consolidated
generation in 2023.

• Reduction of thermal capacity by approximately 5.1 GW compared to 2022, including the closure of two coal-fired plants(for a total of about 2 GW) and the sale of gas plants in Argentina (for a total of about 3 GW) and Colombia (for a total of
about 0.2 GW).
• Reduction of thermal generation by 38% compared to 2022 (specifically, with a 45% reduction in coal-fired generation),
representing 27% of total generation in 2023.

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Type of activity invalue chain

Stakeholders
impacted or
involved

Sourcesof covered GHG(GHG Protocol)(1)Time frame

Stakeholder engagement andmateriality analysis

4

Performance 2023

• Direct (electricity generation)• Upstream value chain (purchase of electricity from other generators for sale to end users)• Customers and power consumers• Electricity generators (peers)• Society and environment• 95% of Scope 1 GHG emissions• 42% of Scope 3 GHG emissions (representing 78% of Scope 3 GHG emissions – category 3)

Medium term (2030)

135 gCO2eq/kWh

73 gCO2eq/kWh% reduction on 2017
(SBTi baseline)

-59%

-78%

-100%

% reduction on
2023 (reporting
year)

-20%

-57%

-100%

Climate scenario

1.5 °C(3)Primary drivers andactions

Appendix

Sale of electricity

Short term (2026)

GHG target

5

Scope 1 and 3 GHG emissions Intensity relating to Integrated PowerGHG TARGET
Primary businessactivity3• Increase the share of renewableenergy sold to customers, while
increasing the Group’s renewables
production and optimizing customer
portfolio, continuing supply anddemand balancing strategy.

• In Europe, increase the share of

fixed-price energy sales to end users
covered by zero-emissions sourcesfrom about 65% in 2023 to more than
80% in 2026.

Long term (2040)
0 gCO2eq/kWh

Zero emissions

1.5 °C (SBTi certified)

1.5 °C (SBTi certified)• Continue the strategy of balancing

supply and demand and increase theshare of electricity sold at a fixed pricecovered by carbon-free generation.

• Continue the process of• By 2040, achieve 100% of electricity
sales covered by renewables.

• No use of carbon-removal

technologies to achieve the target.

decarbonizing electricity generation,
increasing zero-emissions generation
to about 90% of the total in 2030.

• No use of carbon-removal

technologies to achieve the target.

• In Latin America, maintain 100%zero-emissions sales to end users(including through PPAs).

• In North America, maintain 100% zeroemissions sales to end users.

• Continue the process ofdecarbonizing electricity generation,
increasing zero-emissions generationfrom 75% in 2023 (including managed
capacity) to 86% of total in 2026,
including consolidated and managed
capacity.

• No use of carbon-removal

technologies to achieve the target.

Results andmain actions in
2023

KPI achievement in 2023: 168 gCO2eq/kWh• 13% increase in Group consolidated renewables generation in 2023 compared to 2022.
• 7% reduction in the gap between sale of electricity to end users and own generation in the countries in which the Group
has an integrated position in 2023 compared to 2022.

Zero emissions ambition and just transition85

Absolute Scope 3 GHG emissions relating to Gas Retail

GHG TARGET
Primary businessactivity

Sale of gas to end users

Type of activity invalue chain• Downstream value chain

Stakeholders
impacted or
involved• Gas customers• Society and environment

Sourcesof covered GHG(GHG Protocol)(1)• 30% of Scope 3 GHG emissions (corresponding to 100% of Scope 3 GHG emissions – category 11)

Time frame

Short term (2026)

Medium term (2030)

20.0 MtCO2eq

11.4 MtCO2eq% reduction on 2017
(SBTi baseline)

-21%

-55%

-100%

% reduction on
2023 (reporting
year)

-(4)

-32%

-100%

Climate scenarion.a.(5)

GHG target

Primary drivers andactions• Encourage customers (especiallyresidential customers) to switchfrom gas to electricity by promoting
efficient electricity technologies(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
from 2.65 MWh in 2023 to about 2.9
MWh in 2026, thereby increasing theelectrification rate of customers.

• Allocate 32% of investment in grids

in 2024-2026 to connections, also toenabling the expansion of distributed
generation, thereby promoting theelectrification of end users’ energy
consumption. The number ofconnections to distributed generation
is forecast to double in the period,
reaching 4 million in 2026.

residential customers) to switchfrom gas to electricity by promoting
efficient electricity technologies(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
to about 3.5 MWh in 2030, thereby
increasing the electrification rate ofcustomers.

• Continue to invest in distribution

networks, supporting the growthof distributed generation, thereby
promoting the electrification of end
users’ energy consumption, reaching
6 million connections to distributed
generation in 2030.

• Optimize the customer gas portfolio

customers to around 8.4 billion cubic
meters in 2026.

• No use of carbon-removal• No use of carbon-removal

technologies to achieve the target.

86• Encourage customers (especially(industrial customers in particular),continuing to reduce the volume ofgas sold to about 5.3 billion cubic
meters in 2030.

• Reduce the volumes of gas sold to

Results andmain actions in
2023

1.5 °C (SBTi certified)technologies to achieve the target.

KPI achievement in 2023: 16.8 MtCO2eq• 6.2 million gas customers in 2023, with a reduction of 6% compared to 2022.
• 8.3 bcm on Gas sales in 2023, with a reduction of 19% compared to 2022.
• 3.6 million new connections in 2023.

Sustainability Report 2023

Long term (2040)
0 MtCO2eq

Zero emissions

1.5 °C (SBTi certified)• By 2040, achieve 100% of energy sales
covered by renewables.

• Exit retail gas sales business by 2040.
• No use of carbon-removal
technologies to achieve the target.

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Performance 2023

5

Appendix

Additional Scope 1, 2 and 3 emissions

GHG TARGET

Primary businessactivity• Electricity distribution (Scopes 1 and 2)• Management of vehicle fleet, buildings and other assets (Scopes 1 and 2)• Supply chain management (Scope 3)• Purchase of fuels (Scope 3)

Type of activity invalue chain• Direct (electricity distribution and management of vehicle fleet, buildings and other Group assets)• Upstream value chain (supply chain for products and services and fuel business)• End users and electricity consumers• Electric utilities (peers)• Suppliers of goods and services• Oil&gas suppliers• Society and environment

Stakeholders
impacted or
involved• 0.5% of Scope 1 GHG emissions• 100% of Scope 2 GHG emissions• Target 2030(6): 15% of Scope 3 GHG emissions (representing 17% of Scope 3 emissions - category 1 and 22% of

Sourcesof covered GHG(GHG Protocol)(1)

Scope 3 emissions - category 3)• Target 2040(6): 18% of Scope 3 GHG emissions (representing 35% of Scope 3 emissions - category 1 and 22% of
Scope 3 emissions - category 3)

Time frame

Medium term (2030)
10.4 MtCO2eq

GHG target

Long term (2040)<2.5 MtCO2eq

Net zero emissions% reduction on 2017
(SBTi baseline)

-55%

-90%

% reduction on
2023 (reporting
year)

-12%

-83%

Climate scenario
Primary drivers andactions

1.5 °C (SBTi certified)• Investment of €18.6 billion in grids over the 2024-2026

period, of which 50% are to improve grid resilience, qualityand digitalization, thereby helping to reduce grid losses
and related greenhouse gas emissions. Replace existing
distribution grid infrastructure components with SF6-freesolutions.

• Implement a circular procurement approach; increase thenumber of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with suppliers. Strengthen dialogue
with raw material producers and other utilities to define
shared and effective long-term decarbonization strategies.

• Phase-out coal-fired generation by 2027, mitigating all GHG
emissions related to coal supply.

• No use of carbon-removal technologies to achieve thetarget.

1.5 °C (SBTi certified)• Promote grid digitalization and replace existing distribution
grid infrastructure components with SF6-free solutions.

• Implement a circular procurement approach; increase thenumber of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with suppliers. Strengthen dialogue
with raw material producers and other utilities to define
shared and effective long-term decarbonization strategies.

• Eliminate emissions connected with gas extraction activities,

as the Group has fully exited gas-fired generation and sale ofgas to end users.

• Neutralize the residual amount through carbon-removal

actions (purchase of certificates linked to nature-based or
technology-based projects in voluntary carbon markets,in accordance with international standards) if complete
mitigation of emissions is not feasible due to exogenous
factors (technological, market or regulatory).

KPI achievement in 2023: 11.9 MtCO2eq (for 2017-2030 target scope) and 13.5 MtCO2eq(for 2017-2040 target scope)(6)Results andmain actions in2023• €5.4 billion invested in the grid in 2023.
• 43% reduction in coal consumed in thermoelectric power plants.
• 41% reduction in volume of gas consumed in thermoelectric power plants compared with 2022 (due also to the sale of gas
plants in Russia and Argentina), and 19% reduction in volume of gas sold to end users compared with 2022.

• 8% reduction in electricity consumption in Group power plants and buildings.
• 24% reduction in emissions intensity (tCO2eq/€mil) in supply chain in 2023 compared with 2022, reaching 684 tCO2eq/€mil.

Zero emissions ambition and just transition

87

TOTAL COVERAGE OF SCOPES 1-2-3
EMISSIONS IN 2023

• 95.5% of Scope 1 GHG emissions (2026, 2030 and 2040 targets)• 100% of Scope 2 GHG emissions (2030 and 2040 targets)• 87% (2017-2030 target) and 90% (2017-2040 target) of Scope 3 GHG emissions(6)(1) Percentages based on total GHG emissions in 2023.
(2) Excludes marginal Scope 1 GHG emissions not directly related to the combustion of fossil fuels in electricity generation at thermal plants. These emissions
also include the use of auxiliary services in distribution operations. In particular, in 2023 there was an extraordinarily high use of these services in Brazil todeal with the meteorological emergency that occurred in São Paulo in November 2023, which caused the interruption of grid operations. However, 95.8%
of Scope 1 and Scope 2 GHG emissions are covered by all of the above targets, greater than the 95% threshold required by SBTi and GHG Protocol.
(3) The target is in line with the 1.5 ºC pathway set by the SBTi for the electrical services industry (Sectoral Decarbonization Approach, or SDA), although it could
not be officially validated because the SBTi does not certify targets over a time frame of less than five years from the presentation date.
(4) In 2023, gas sales decreased considerably compared with previous years. Furthermore, a methodological change in the use of conversion factors has been
implemented. These two factors produced a value below the target expected for 2026.
(5) The target could not be officially validated because the SBTi does not validate targets over a time frame of less than five years from the presentation date.
In addition, the SBTi has not defined a sectoral decarbonization approach for these types of emissions, so the ambition level cannot be verified.
(6) Two different percentage limits have been set for the target for Scope 3 GHG emissions from the supply chain, as allowed by SBTi, which required coverageof at least 67% of Scope 3 emissions for the 2030 target, and at least 90% for the 2040 target.

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2Enel’s commitment
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Performance 2023

5

Appendix

Enel’s roadmap for a just transition
Enel’s roadmap for a just transition hinges on three pillars:• engagement with internal and external stakeholders inorder to increase their awareness and develop a constructive dialogue that can provide a valuable contribution to the transition itself;• transition out of high-carbon activities, with the development of activities to support the vocational requalification, retraining, and self-learning of direct and indirect workers, to support business diversification andgreater resilience of the supply chain, to foster the so-•

cio-economic development of communities in the areaof influence of its operations and to help customers toquit conventional technologies;
transition into green technologies, facilitating accessto new job opportunities for direct and indirect workers,
and developing inclusive and accessible solutions forcommunities and customers through user-friendly services and offerings that reduce complexity and costs,
while getting consumers to increase control over theirconsumption.

TRANSITION OUTENEL PEOPLE
Social dialog, social protection andwage guarantees, in line with ILO
standards

SUPPLIERS
Support for increasing resilience inthe transitioning economy and thediversification of ’net-zero’ criticaltechnologies

COMMUNITIESContribution to socio-economic
development, with a focus on thosetransitioning away from fossil fuels
generation

CUSTOMERS
Support in electrification journey andto access affordable, secure and green
energyTRANSITION IN

Upskilling/reskilling,
redeployment, sharing of
knowledge

Upskilling/reskilling to green jobs
and digital

Joint work on circular andlow carbon supply models +upskilling/reskilling for workers
whose jobs may disappear

Supplier development
program (managerial andtechnical training to foster
business reconversion andinternationalization)

Development of individual andmulti-stakeholder activities tomanage challenges and createshared value opportunities

Access to credit, inclusive
business products, training
aimed at facilitating access toemployment and gender-gap
reduction

Analysis of barriers andintervention areas to facilitate
dropping out of conventional
technologies

Empowerment and accessible
and inclusive transition

Cross and tailored stakeholder engagement

Zero emissions ambition and just transition89

Stakeholdersʹ engagement
Enel promotes broad engagement with internal and external stakeholders aimed at enhancing their awareness anddeveloping a constructive dialogue that can contributevaluably to a just transition.
Awareness raising campaigns are a focal element to empower stakeholders in the transition to net zero, with particular attention to the most vulnerable. These activities tothis end are tailored to:• people working in the organization, to support theircommitment and sense of purpose as well as nurturing
a culture of inclusion;• suppliers, to support their path of change and growth••since the transformation of the energy sector coupledwith the push on digital requires a different approach to
executing works or providing goods and services;
local communities in the Company’s area of influencewith whom it is in place a structured approach to set
up a broad, inclusive and ongoing dialogue to identify
shared solutions. Enel is, in fact, committed to ensuringthat new projects related to the decarbonization process are developed in consultation with the communities affected to seek their consent;
customers, whose active participation to the transitionneeds to be fostered and supported.

Transition out
Enel has set out a clear roadmap for decarbonizing its
energy mix and, in this context, it takes into account theneeds of direct and indirect workers, communities, suppliers and customers, and is committed to inclusive practices through initiatives in which individual conditions, economic and social development and the general wellbeingof the community are closely linked.
Consistently with its commitment to a just transition, Enelhas developed a plan in order to support stakeholders who
may be negatively affected by the decarbonization pathway. Specifically, the plan for exiting thermal generationentails:• Enel people | maintaining and developing skills andknow-how transfer:– agreed redeployment based on individual characteristics either in the same Business Line, on the renewable side, or in other Business Lines, in order to enhance human capital and know-how. In this regard,
agreed redeployment (which also involves workers’
representative bodies) is accompanied by reskillingand upskilling plans for strengthening existing skills

90

Sustainability Report 2023•

or developing new skills needed in the new role. Redeployment does not negatively affect the contract
type and the wages of those concerned;– voluntary access to early retirement plans for those
who are eligible.
Site repurposing/regeneration:– replacement of thermal power plants with renewableor hybrid plants, i.e., a combination of green technologies such as, for example, renewables, storage,hydrogen; land reclamation and maximization of thereuse of abandoned structures, such as roads, infrastructure, high-voltage connections, buildings, etc.,
in line with Enel’s circular economy principles;– engagement with affected communities and development of multi-stakeholder projects to foster thecreation of shared value throughout the project,from the preliminary talks to the choice of which redevelopment projects to pursue;– third-party projects not in energy fields that meetthe needs of the communities in which the facilities
are located.

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Performance 2023

2023

2024-2026

30% of people leaving coal-fired plants
in 2023 have been redeployed and haveattended upskilling/reskilling programs; theremaining 70% have retired or have been
involved in early retirement programs

80% of people leaving coal-fired plants
will be redeployed
and the remaining 20% will be involvedin early retirement plans

5

Appendix

Overall reskilling and upskilling
dedicated to total Enel people: up to 40%

Redeployed coal plants people:~80% within the Enel Green Power and
Thermal Generation perimeter

Strengthening of the “internal training”
approach~20% in other Enel business areas

Transition in
Similarly to transition out, the path to a ‘green’ and digital
future must also be led in an inclusive way to enable all
stakeholders to seize the opportunities and manage therisks involved. Like actions to promote requalification, vocational training, and self-learning, in the case of direct

and indirect workers, support for business diversificationand increased resilience for supply chain companies, aswell as generation of value for communities, through access to local job opportunities, and facilitating access to
products and services for customers.

Enel people | Lifelong learning
The rapid and continuous evolution of the business andthe support to a fair transition strategy towards low carbon technologies and services entail the need for new
technical and professional profiles and the awareness thatsome jobs will disappear. In this context, lifelong learning
becomes essential. Empowerment becomes therefore
crucial to evolve culturally, because it allows to fully involve
people, motivating them to express their potential, whileat the same time providing them with opportunities for
personal and professional development, and contributing
to create conditions of well-being, motivation, responsibility and participation that will enable the achievement ofstrategic objectives.
Among the initiatives implemented:• retraining and professional updating, up/reskilling,
self-learning and knowledge transfer. The various
schools & academies of Enel’s Business Lines have organized existing skills enhancement programs to allow
participants to access more advanced career paths(upskilling) and to learn new skills (reskilling) that enablepeople to fill positions and roles different from theirprevious ones, while also enhancing soft and transferable skills. These programs were implemented also incollaboration with university and academic partners;

Enel people
94% of the population involved in training
activities~3.1 million hours of training provided(~48 hours per capita average), of whichapproximately 45% is dedicated to
upskilling and reskilling~480,000 hours delivered, dedicatedto the topics of digital skills(15% of total training hours)• supporting the dissemination of digital culture and the•utilization of digital media;
promoting the presence of women in STEM (Science,
Technology, Engineering, Mathematics) classes andjobs.
For more details see the chapter“Enel people”.

Zero emissions ambition and just transition91Suppliers | Supporting change
Suppliers are essential partners in the journey to decarbonization. In this sense, actions in place aim, on the one
hand, at supporting their increased resilience and, on theother, to minimize pressure on critical materials and components through continued technology innovation andrecycling. This is why Enel works jointly with suppliers todevelop new metrics and promote co-innovation projects
to support decarbonization and circular economy approaches, all of which will have a positive impact on theirproduction processes and purchasing methods.
There are several initiatives to support supplier businessconversion and diversification such as, but not limited to:• the Supplier Development Program, which places a
specific focus on SMEs operating in strategic sectorsthat will benefit from direct support for facilitated access to services (e.g., liquidity sources, management
and technical training programs, advice on sustainability and the circular economy);• the “Sportello imprese” (business desk), which consists
in meeting periodically with companies from the traditional power generation sector to support their growth
and requalification in areas such as renewables or new
services related to energy efficiency;• “Energie per Crescere” (Energies for Growth), a program which aims to strengthen Enel’s supply chain
creating highly requested professional profiles in theelectricity sector. The program particularly involved
E-Distribuzione contractors, creating jobs that are inhigh demand in the industry (e.g., cable pullers, cablesplicers, substation assemblers, live-line workers);• “Energie per la Scuola” (Energies for School), a program for final year students attending technical andvocational schools with the aim of training them for the92

Sustainability Report 2023

Suppliers
5,500(1) people receiving training as newtechnicians for contractors as part of the“Energies for Growth” project

4,000(2) people already trained in network

infrastructures (completion in 2025),of which approximately 2,600 new
technicians hired as part of the “Energies
for Growth” project550(2) people trained for the new

professions of the energy transition, hired
and in the process of being hired as part of
the “Energies for School” project(1) By 2025.
(2) Cumulative figures, 2022-2023.

’most wanted’ roles in the electricity sector so that, after
graduation, they can be hired by Enel contractors. The
aim is to create a bridge between education and theprofessional sphere, encouraging the students to acquire the skills needed to embrace the new professionsof the energy transition, and facilitating their entry into
the workplace with the Group’s suppliers immediately after graduation, also through greater knowledge ofthe industrial realities in the industry.

For more details see the chapter“Sustainable supply chain”.

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2Enel’s commitment
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Stakeholder engagement andmateriality analysis

Communities | Creating value for
local communities
Enel’s commitment to supporting communities is expressed through initiatives that promote inclusion (withparticular focus on people in conditions of physical, socialand economic vulnerability) both in terms of access to local job opportunities and facilitating access to products
and services. These initiatives are the result of strong andlasting community relationships in which there is broad,inclusive and continuous dialogue based on clearly defined phases of “stakeholder engagement” in line with international reference standards.

4

Performance 2023

5

AppendixCommunities
about 3.9 million beneficiaries, in line with
the Sustainable Development Goals (SDGs),
mainly relating to projects and initiatives
associated with the 3 SDGs to which
the Group has made a commitment(SDGs 4, 7, 8)

For more details see the chapter“Engaging communities”.

Customers | Empowering the transition
Energy and digital technologies are key factors empowering the transition of customers through new services andpromoting greater understanding of and control over theirconsumption, along with the affordability of green technologies (whether electric mobility, photovoltaic or heatpumps), the lack of affordability is a significant barrier especially for low-income and vulnerable customers alreadystruggling with primary energy costs who paradoxically
could benefit most from their adoption.
Technologies such as smart meters increase customer
awareness of their own consumption habits, which encourages more efficient and sustainable behaviors. Energy suppliers and service providers can help consumers make the best use of new technologies (heat pumps,
electric transportation, efficient appliances) by designinguser-friendly services (that also leverage digital) and offerings that reduce complexity and costs.

The enormous amount of data created by the growing roleof connected devices offers a great opportunity to engage
customers in the transition with customized solutions thatcombine security and data privacy.

Customers~68 GW of distributed renewablecapacity connected to Enel grids fromaround 2 million connections fromproducers and prosumers~9.6 GW of contracted capacity for
flexibility services
24,300 publicly owned charging points(1)(1)

It should be noted that the figures shown, if theyalso included the charging points of companies
operated in joint ventures, would be 25,337 as ofDecember 31, 2023.

For further details see the chapter“Customer centricity” of this document.

Zero emissions ambition and just transition

93

Enel’s impact on climate change
3-3

201-2

ENEL’S IMPACT ON CLIMATE CHANGE IN 2023

POSITIVE IMPACTS

CO2-free generation(1)• Avoided greenhouse gas
emissions from electricity
generation• Contribution togreenhouse gas emission
reduction in other sectors(²)
through a zero-emission
energy mix

45.2 million
end userswith active
smart
meters(3)• By providing data inquasi real time, smart
meters allow an efficientmanagement of theenergy supply anddemand, promoting
informed and sustainableconsumption

24,300charging
points forelectric
mobility• Contribution togreenhouse gas emission
reduction in other sectors
through the electrificationof consumption, includingtransport by promoting
electric mobility

970 MW• Increase in storage
capacity(4)2.5averagenumberof service
interruptions
per client(SAIFI)(5)• A reliable and resilient
network contributes toreduce the grenhouse gas
emissions associated withgrid losses

9.6 GWof demand
response
capacity• Solution that enables
greater flexibility andmore efficient use of
infrastructure and energy
resources for commercial
and residential customers

NEGATIVE IMPACTS

GENERATION

32.7
MtCO2eq• Direct greenhouse gas
emissions forelectricity generation(Scope 1)(6)6.9
MtCO2eq• Indirect greenhousegas emissions derivingfrom the extraction andtransport of fuels andsubproducts(8) (Scope 3)

Thermal production

94

Electrification of energy demandand promotion of energy efficiency

86.0
MtCO2eq
avoided

VALUE
CHAIN

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Digitalization of the grid

GRIDS

2.7
MtCO2eq• Indirect greenhouse gas
emissions associated withtechnical losses from thegrid (Scope 2)(7)Technical losses from the grid

RETAIL

24.0
MtCO2eq• Indirect greenhouse gas
emissions associated withthe purchase of electricity
from other producers forsale to the end customer inthe retail market (Scope 3)

16.8
MtCO2eq• Greenhouse gas emissions
associated with the useof natural gas sold on theretail market (Scope 3)

Sales of retail electricity and gas

Includes renewable and nuclear power generation.
The GHG Protocol requires the consumption of electricity to be considered when calculating the Company’s carbon footprint as indirect emissions (Scope 2).
Of which second-generation smart meters 28.7 million in 2023 and 25.2 million in 2022.
Includes contribution of Global Power Generation Business Line.
SAIFI, System Average Interruption Frequency Index.
Other Scope 1 emissions were indicated in the paragraph “Enel’s performance in tackling climate change” in this chapter.
Other Scope 2 emissions were indicated in the paragraph “Enel’s performance in tackling climate change” in this chapter.
Includes indirect emissions related to the extraction and transportation of natural gas sold to end customers in the retail market.

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Electricity is essential to guarantee the sustainable progress of modern societies and represents a key factor inreaching the goals of the United Nations 2030 Agenda, inparticular SDG 7, to guarantee everyone accessible, reliable, sustainable and modern energy, and SDG 13, regarding climate action.
Electricity generation has always played a key role in climate change, as the use of fossil fuels is a considerable
source of greenhouse gas emissions. Technological development, in particular in the area of renewable energies,
has however completely transformed this scenario bymaking electricity one of the main solutions for reducing
the carbon footprint world-wide. Enel is aware of these impacts and implements specific actions to minimize them,promoting the decarbonization of the energy system andthe electrification of the energy demand. As a result thisreduces the greenhouse gas emissions along the entire
value chain.
Recognizing the relevance to business of the social impacts of its climate strategy, Enel fully supports the principles of a just transition that leaves no one behind by developing specific initiatives aimed at accompanying Enelpeople, suppliers, communities and customers on thepath to decarbonization.
Enel’s power generation from fossil fuels (mainly gas andcoal) traditionally represents the main source of greenhouse gas emissions. In particular, in 2023, direct emissions(Scope 1) related to generation from fossil sources amounted to about 32.7 MtCO2eq, while indirect emissions (Scope3) related to fuel extraction and transportation amounted
to 6.9 MtCO2eq (also considering those related to the extraction and transportation of natural gas sold to end customers). Enel is reducing this impact by accelerating thedecommissioning of coal-fired plants, with a reduction of
capacity in 2023 of approximately 2 GW compared to 2022.
In parallel, the Group is increasing the development of renewable capacity that, together with the contribution of
nuclear generation, has made it possible to avoid 86.0 MtCO2eq emissions. Furthermore, Enel is actively committed to4

Performance 2023

5

Appendix

the development of electricity storage systems that support
the integration of renewable capacity, with a total installedcapacity of 1,730 MW in 2023 (BESS(3) and storage behindthe meter). The decarbonization of the energy mix also has
a positive impact on the reduction of indirect greenhousegas emissions (Scope 2) associated with the purchase ofelectricity to cover the requirements of business activities.
Management of the electricity network leads to the generation of indirect greenhouse gas emissions (Scope 2) associated with technical grid losses, equal to 2.7 MtCO2eq in
2023 (according to the location-based calculation methodology). Enel is actively investing in the digitalization andautomation of the electricity grid to reduce these losses
and increase the reliability of the grid, while promoting the
diffusion of renewables in the energy system.
Regarding end users, the use of the products sold by
Enel’s customers generates GHG emissions that are accounted for as indirect (Scope 3). In particular, the emissions related to the use of electricity sold to customers
were 24.0 MtCO2eq, whereas those related to gas soldequaled 16.8 MtCO2eq. Enel regularly monitors these emissions and adopts measures aimed at minimizing them.
Furthermore, Enel offers its customers technical solutions
to reduce carbon emissions related to their energy consumption in a wide range of sectors, including transport,
property management as well as industrial processes andservices. For example, with Enel X the Group is promoting the deployment of owned public charging infrastructure for electric vehicles (24.3 thousand charging points
installed in 2023(4)), the development of energy efficiency
solutions, distributed generation, energy consultancy services, smart street lighting and circular cities.
Emissions related to the activities of the Group’s suppliers amounted to 8.8 MtCO2eq in 2023. To reduce this impact, Enel adopts a circular procurement approach andincludes assessments of the carbon footprint of the products and services involved in its purchasing processes, encouraging their reduction.

(3) Battery Energy Storage System.
(4) For charging points including companies operated in joint ventures, the total amount is 25,337 as of December 31, 2023, and 22,617 as of December 31, 2022.

Zero emissions ambition and just transition95

Enel’s advocacy system on climate policies
and a just energy transition
In Enel, advocacy on the issue of climate change aims topromote and define:• ambitious climate and decarbonization targets consistent with the objectives set by the Paris Agreement;• effective and efficient implementation mechanisms
capable of exploiting market dynamics, by fully supporting the role of carbon pricing where appropriate;• a clear governance framework that ensures transparency and clarity at the planning stage but also predictability and responsibility at the implementation stage,in order to ensure effective legal and regulatory frameworks in promoting the necessary investments;• constructive dialogue within multi-stakeholder initiatives, actively contributing to groups and coalitions
such as the Just Transition Think Lab, the Caring for
Climate initiative of the UN Global Compact, the Energy Advisory Group of the We Mean Business Coalition,
the Policy Advocacy & Member Mobilization (PAMM)
and Carbon Capture Storage & Removal projects of theWorld Business Council for Sustainable Development(WBCSD);• recognized private sector leadership in climate andenergy through its continued participation in initiatives
such as the CEO Alliance, the CEO Climate Leaders Alliance and the First Movers Coalition (FMC) of the WEF,
the Utilities for Net Zero Alliance, the Global Sustainable
Energy Partnership, and regional and national trade associations;• the creation and sharing of knowledge by supporting
the activities of the Fondazione Centro Studi Enel (EnelFoundation), an Italian think tank founded by Enel SpA
that seeks to contribute to solving the greatest challenges of our time in the areas of climate and energy
transition.
Enel is committed to carrying out its direct and indirectpublic advocacy actions in line with the Paris Agreement
and with the target of limiting global warming to below
1.5 °C. Evoking the original spirit of the Agreement, it does
this by involving a wide range of stakeholder including
public institutions, trade associations, non-governmentalorganizations and academia. The aim is to promote the96

Sustainability Report 2023

Group’s vision on climate, zero greenhouse gas emission
policies and a roadmap to a just energy transition. Throughits direct advocacy, Enel interacts with policy makers, while
indirectly it contributes to positioning and debate in tradeassociations. The goal is to build consensus and support
for the path to decarbonization of the global economy,
which is the goal of the Paris Agreement.
The global coordination of the Enel Group’s advocacy on
climate policies is provided by the Energy and Climate
Policies unit. This unit is responsible for ensuring the consistency of global scenarios and positions of the Groupon climate policies with the support of Countries and the
Global Business Lines. Its objective is to guide Enel’s national and local advocacy activities, thanks to a continuous
dialogue with institutions and the widest possible range ofstakeholders who are active in the climate debate.
At the local level, in countries where Enel operates, its advocacy efforts are led by the institutional relations units
with the support of the business units. These efforts are
pursued through specific activities and broader stakeholder engagement on the issues of decarbonization anda just energy transition, adopting an approach similar tothe one adopted at the global level. Enel’s advocacy in thisarea is implemented through ad hoc engagement on specific legislative proposals (e.g., the European Climate Law),but also through broader stakeholder engagement at thenational level through Enel’s Energy Transition Roadmap
platform.
Enel continuously assesses the alignment of its direct advocacy actions with the goals set by the Paris Agreement.
In fact, in accordance with the Group’s “Climate changerisks and opportunities” policy, the Group’s climate advocacy activities are guided by energy transition roadmaps,
through which Enel engages a wide range of stakeholders
in relation to the actions needed at the national level topursue the goals of the Paris Agreement. These energy
transition roadmaps are developed for each country where
the Group operates and updated in line with any changes
in regulatory, technological and market dynamics.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Direct advocacy. The Group’s positioning
on key climate policies
During 2023, numerous policies and regulatory provisions were enacted concerning climate and the related
energy and environmental issues. In this context, thenumber of dossiers on which Enel focuses its advocacy
efforts increases each year, and only the most relevant
are listed below, along with the positions taken by theGroup.

Globally:
Negotiations under the United Nations Framework
Convention on Climate Change (UNFCCC) continued
leading to a final agreement on the COP 28 Decision in
Dubai. Highlights of the agreement include: a call for themobilization of additional efforts in the phase-out of fossil fuels, aimed at tripling global renewable energy capacity and doubling the average annual rate of energy
efficiency improvement by 2030; concrete support fordeveloping countries to strengthen their resilience toclimate change; and a strengthening of climate financethrough the Green Climate Fund and other dedicatedfunds. Enel has been active in promoting greater ambition, the implementation of the Transparency Governance Framework, the development of mechanisms toensure a just transition and the full mobilization of theclimate finance envisaged by the Paris Agreement including the rapid development of international cooperation as envisaged by Article 6 of the same Agreement.
Enel contributed to COP 28 in Dubai by participating
in initiatives promoted in cooperation with public andprivate players. Enel joined the Utilities for Net Zero Alliance (UNEZA), an initiative aimed at fostering international cooperation to accelerate the energy transition,
which is coordinated by IRENA, supported by WEF andpromoted by the UN High-Level Climate Champions. The
Spanish subsidiary Endesa was recognized as an “Energy Transition Changemaker” for the project of justtransition of the thermal power plant in Andorra, Teruel. The Group’s unwavering commitment has been recognized by its ranking at the top of the Influence Map
classification regarding Corporate Engagement at COP
28 (https://cop28.influencemap.org/CorporateInfluenceDatabase).

At European level:
During 2023, the Group represented its interests andpromoted its position vis-à-vis the European institutions(Commission, Parliament, Council) with the aim of contributing to legislative proposals and decisions that could
have affected the EU’s Climate and Energy Policy Framework, and the Group’s activities. In carrying out these activities, Enel is committed to acting in a transparent andresponsible manner. As such, it is registered with the European Transparency Register(5), whose specific activities
are related to major EU legislative and/or policy proposals.
In addition, Enel’s positions and responses to EU consultations (such as the Critical Raw Materials Act) are madepublic, together with a list of the main professional associations and think-tanks in which Enel is active. During 2023,
Enel carried out its advocacy work in relation to several
European dossiers, including:• evolution of the ETS system and introduction of the
Carbon Border Adjustment Mechanism (CBAM). Specific proposals at the European level have resulted in:a) consolidation of the current CO2 trading system byincreasing its ambition and revising the internal mechanisms for market stabilization and allocation of freeallowances; b) creation of an additional allowance trading system for the transport and building sectors; andc) introduction of a Carbon Border Adjustment Mechanism (CBAM) to ensure that a carbon price is also applied to major imported goods with high CO2 content.
Enel proactively supported the proposals with a view toensuring ambition consistent with the Paris Agreement,
protecting European competitiveness and the most
exposed segments in the context of a just transition,and strengthening CO2 price predictability to support
investment;• the hydrogen strategy, the hydrogen and gas market
decarbonization package, the methane gas regulation. The important role of fossil gas in transitioning todecarbonized gas has been addressed at both the strategic and regulatory levels with these measures. Enelparticipated in the debate by actively promoting greenhydrogen (generated by electrolysis powered by 100%
renewable energy) and by participating in the “Energy
Pathway” project sponsored by WBCSD, with the aim ofmonitoring developments in the hydrogen market. With(5) https://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=6256831207-27&locale=en#en, number 6256831207-27. By registering, Enel signed the Transparency Register Code of Conduct and also declared that it is bound by its own Code of Ethics.

Zero emissions ambition and just transition

97

•

•

regard to the gas package, it promoted clear distinction in the sphere of the tariff and incentive systems.
Lastly, when discussing the regulation, Enel promoted
targets consistent with the European decarbonization
pathway along with systematic monitoring;
directives on energy efficiency and the energy performance of buildings. The two measures further increased targets for efficient energy use, envisaging
among other things at least an 11.7% reduction in energy consumption, strengthening the active role of buildings in electric systems through targets for the installation of electric vehicle charging points and distributed
renewable energy generation facilities. Enel actively
participated in the debate by advocating for the role ofclean electrification as a vector that can ensure benefits not only in terms of combating climate change, butalso with regard to energy efficiency, competitiveness,
economic circularity and improved air quality, especiallyin urban areas;
revised renewable energy directive. The revision provided for increased targets for the development of
renewable energy sources, which are considered strategic for Europe both in terms of decarbonization andenergy independence. It also introduced a numberof measures to further facilitate their dissemination
throughout the territory. Enel strongly supported thegoals of the directive, given the central role that renewable sources play in its Industrial Plan. Enel’s advocacy
is based on the belief that the EU regulatory framework
should provide long-term predictability for investors, aswell as simplified and harmonized authorization procedures.

At the national level, the main dossiers on which the EnelGroup has taken advocacy actions include:• in Italy, the publication of the draft update of the National Energy and Climate Plan (NECP) envisaged by
the European regulation, which was welcomed by Enelparticularly with regard to the simplification of authorization processes, the promotion of renewable sources
with long-term market instruments, the recognitionof the structural role of the capacity market, and therecourse to long-term market instruments for flexibility resources. In addition, the consultation on support
schemes for plants fueled by renewable sources was

98

Sustainability Report 2023

•

•

•

favorably received. On the critical issue of adaptation,
the National Climate Change Adaptation Plan was approved, which Enel believes has strategic value for the
resilience of the electricity sector and the Italian economy;
in Spain, the draft revision of the National Energy andClimate Plan was published and the intensified ambition of the same was viewed positively by the EnelGroup. Enel’s advocacy activities also included proposing measures that would effectively achieve the proposed goals and highlighted the need to synchronize
the share of electrification with the development of
renewable energy. As regards disclosure requirements
on financial risks associated with climate change, theEnel Group responded to the consultation by offering
its support and requesting Scope 3 emissions to beconsidered among the indicators to be reported;in the United States, the Inflation Reduction Act continued to be rolled out with a series of implementation
decrees. Enel North America supported this process
by providing input on a number of legislative proposals including those related to tax credits. In addition,
the Federal Energy Regulatory Commission (FERC) approved Order 2023, the most comprehensive set ofreforms to the generator interconnection process in
two decades. Enel North America backed the proposed
reforms and gave public testimony in support of the initiatives. FERC referred to Enel’s comments 247 times in
the Final Rule. In multiple instances, FERC has cited andaccepted Enel’s specific recommendations;
Brazil is in the process of passing a bill to regulate
the carbon market in the country. Enel actively supports the initiative, which it sees as an important tool
to ensure economic efficiency and effectiveness inachieving environmental goals. The National Hydrogen
Program (PNH2) has also been published, while the national low-emission hydrogen regulation is still underdevelopment. In this context, the Enel Group supports
the regulation of the hydrogen market, understood asa driver of the energy transition, and particularly thestrengthening of green hydrogen. Enel also actively
supports Decree no. 11.648/2023 establishing “Energias de Amazonia” in light of how it will help promoterenewable sources and a just transition of Amazoniansystems.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Indirect advocacy. Enel’s commitment throughassociations and organizations
2-28
The Group plays an active role in various industry andmulti-stakeholder associations and organizations withthe aim of promoting issues concerning energy transitionand climate action at the national and global level. Enel iscommitted to ensuring that the various industry associations, business networks and think tanks of which it is amember operate in full compliance with the objectives of
the Paris Agreement and the decarbonization roadmap
established by the Group. Enel therefore systematically verifies the consistency of the associations’ positions
with the climate policies shared at the Group level. This
verification process is carried out in two stages:
i. before joining the association, through an in-depth
analysis of the association’s by-laws, in line with the Climate Policy issued in September 2021;
ii. after joining the association, actively contributing to its
work and/or taking positions of responsibility within itor promoting the Enel Group’s position within working
groups.
A review of the level of alignment of the associations with
Enel’s strategy is conducted annually.
Where an association is found not to be in line with theobjectives of the Paris Agreement and Enel’s climate risk
mitigation strategy, the Company assesses whether the
misalignment could compromise the effectiveness ofEnel’s advocacy and participation, and may decide to withdraw from the association.

In 2023, the analysis for assessing alignment with theParis Agreement was extended to cover all associations
involved in climate advocacy activities, of which Enel is a
global member. In addition, as it did last year for 2022, for2023 Enel has published a list, an analysis of positioning
and an assessment of the Paris Agreement alignment of
the most relevant associations within which Enel is active, in terms of climate policy advocacy. The alignment
level was determined based on a specific methodology
using targeted evaluations on the climate science, climate
policies at global and national levels, disclosures on the
topic, and the technologies promoted.
In 2023, the methodology developed to evaluate the different associations was further improved to ensure theaccuracy and robustness of internal processes. For eachcountry and/or region where it is present and/or of interest, the Enel Group identified the main associations engaged in climate policy advocacy activities and conducted, for each of them, a qualitative assessment in order to
identify the association’s level of alignment with the Paris
Agreement.

For more information on Enel’s direct andindirect advocacy activities and for the complete listof associations and their evaluation, please see the“Climate Policy Advocacy Report 2023”.

Zero emissions ambition and just transition99

Enel’s governance model to tackle climate change
2-9

2-12

2-13

2-19

2-20

2-24

TCFD: GovernanceCompetences of corporate bodies
The corporate governance system adopted by Enel is oriented toward the goal of sustainable success, given that it
is aimed at creating value for shareholders over the longterm, aware of the importance from an environmental so-

cial point of view of the Enel Group’s operating activities
and the consequent need to proceed with adequate consideration of the interests of all the relevant stakeholders.

CHAIRMAN
Functions
Overseeing the climatechange strategy
Coordinating theBoard of Directors

BOARD OFDIRECTORSCHIEF EXECUTIVEOFFICER
FunctionsControl and Risk
Committee
Corporate Governanceand Sustainability
Committee
Functions
Overseeing the climatechange strategy (risks,planning and disclosure)

MANAGEMENTLEVEL

Developing andoverseeing thesustainable businessmodel for guiding theenergy transition

Holding Functions
Global Service Functions
Global Business Lines
Regions and Countries
Functions
Developing the Strategic Plan andmeasures for managing the risks
and opportunities tied to climatechange and the energy transitionGroup
Investments
Committee
Functions
Approving investmentsthat align with Enel’s
climate change goals

100

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

The Board of Directors of Enel SpA:

• Pursuant to the Articles of Association, the Board of

•

•

•

•

Directors of Enel SpA is endowed with broad powers
for the ordinary and extraordinary administration of
the Company and has the authority to carry out any action deemed appropriate for the implementation andachievement of the corporate purpose.
It plays a central role in corporate governance as the
body vested with powers related to the strategic, organizational and control policies of the Company and
the Group, the sustainable success of which it pursues.
In this context, the Board examines and approves theCompany’s strategy, including the annual budget andthe Industrial Plan (which incorporate the main objectives and actions planned, including with regard tosustainability issues, to drive the energy transition andtackle climate change), taking into consideration theanalysis of issues relevant to the generation of longterm value and thus promoting a sustainable businessmodel.
It plays a role of guidance and assessment of the adequacy of the Internal Control and Risk Management
System (so-called “ICRMS”). In particular, the Board defines the nature and level of risk compatible with thestrategic objectives of the Company and the Group,
including in its assessments any elements that may be
relevant in the perspective of the Company’s sustainable success. The ICRMS consists of the set of rules,
procedures and organizational structures aimed at effective and efficient identification, measurement, management and monitoring of the main corporate risks,
including risks related to climate change and, moregenerally, risks that the Group’s activities may determine in the fields of environment, society, personnel
and human rights.
The Board defines the remuneration policy for Directors, Auditors and Key management personnel, basedon the pursuit of the Company’s sustainable successand taking into account the need to arrange, retain andmotivate people with the skills and professionalism required by the role covered, submitting this policy to the
Shareholders’ Meeting for approval.
During 2023, the Board addressed climate-related issues, reflected in the strategies and related implementation methods in 6 of the 15 meetings held, in particular during: (i) the review and approval of the Industrial
Plan of the Company and the Group; (ii) the definitionof Enel’s remuneration policy for 2023; (iii) the review of
the contents of the Sustainability Report for the 2022
financial year, coinciding with the Consolidated Non-Financial Statement pursuant to Legislative Decree no.
254/2016 for the same year. In addition, it discussed
climate- and environment- related issues as part of the4

Performance 2023

5

Appendix

in-depth studies dedicated to operations related to thedecarbonization strategy and sustainable finance, as
well as in relation to investor dialogue activities. Finally,in the event of extreme weather events, the Board of
Directors received extensive information on the immediate countermeasures taken, as well as on the need toadapt infrastructures to respond to the changed context.
• As part of the annual process of assessing the competences of the members of the Board of Directors, managed by an independent third party, at the beginningof 2024 Enel assessed the Directors’ competences inmanaging climate risks and opportunities. As a resultof this assessment, it was concluded that measures
should be implemented to improve the climate competence of the Board.
Consequently, the following measures were taken:– an ad hoc induction program on climate-related issues was launched for all members of the Board of
Directors; and– the Corporate Governance and Sustainability Committee, established within the Board of Directors,
appointed one of its members (Johanna Arbib) as a
non-executive and independent Director in chargeof monitoring climate and zero-emission transition
issues within the scope of the Committee’s competences. This member of the Board of Directors hasreceived timely and adequate training on how climate
and the energy transition affect the Group’s strategy, how the Enel Group impacts climate, and the risks
and opportunities for climate mitigation and adaptation for the Group.
In accordance with the provisions of the Italian Civil Code,the Board of Directors has delegated part of its management responsibilities to the Chief Executive Officer and,based on the recommendations of the Italian Corporate
Governance Code, and provided for under the relevant
CONSOB regulations, has appointed the following Board
Committees which provide recommendations and advice.

The Corporate Governance andSustainability Committee:• Assists the Board of Directors in assessment and de-•cision-making activities concerning the Company’s
and Group’s corporate governance and sustainability,
including climate change issues and the dynamics of
the Company’s interaction with all the stakeholders.
With regard to sustainability issues, it examines, interalia, (i) the guidelines of the Sustainability Plan, including the climate objectives defined therein, as well as
the Priorities’ Matrix, which identifies the priority issues

Zero emissions ambition and just transition

101

•

for stakeholders in light of the Group’s industrial strategies; (ii) the methods for implementing the sustainability policy; (iii) the general approach and structureof the contents of the Non-Financial Statement andthe Sustainability Report (possibly as a single document), as well as the completeness and transparency of
the information contained therein, including on climatechange, and their consistency with the principles laid
down by the reporting standard used, issuing a prioropinion on this matter to the Board of Directors called
upon to approve these documents.
During 2023, Committee dealt with climate-related issues, reflected in the strategies and related implementation methods in 5 of the 7 meetings held, in particularduring the review of: (i) the Sustainability Report for the2022 financial year, coinciding with the Consolidated
Non-Financial Statement pursuant to Legislative Decree no. 254/2016 for the same year; (ii) the materiality analysis and the guidelines of the Sustainability Plan
2024-2026; (iii) updates on the main activities carriedout in 2023 by the Enel Group in the field of sustainability, on the status of implementation of the Sustainability Plan 2023-2025 and regarding Enel’s inclusion in themain sustainability indices.

The Control and Risk Committee:• The Committee has the task of supporting the Board

•

•

•

102

of Directors’ assessments and decisions relating to the
ICRMS, also as concerns climate risks and those relating to the approval of periodic annual and interim financial and non-financial reports.
It assesses the suitability of annual and interim financial and non-financial information to correctly represent the business model, the strategies of the Company and the Group it heads, the impact of the Company’s activities and achievements, coordinating with the
Corporate Governance and Sustainability Committee
as regards periodic non-financial information.
It examines the topics relevant to the ICRMS dealt
with in the Non-Financial Statement, pursuant to Legislative Decree No. 254/2016, and in the Sustainability
Report (possibly as a single document) and containing
the Company’s climate disclosure, issuing a prior opinion on the matter to the Board of Directors, which iscalled upon to approve these documents.
During 2023, Committee dealt with climate-related issues, reflected in the strategies and related implementation methods in 3 of the 14 meetings held, in particular during the review of: (i) assessment of the relevant
issues for the purposes of the ICRMS dealt with in the
Sustainability Report for the 2022 financial year, coinciding with the Consolidated Non-Financial Statement

Sustainability Report 2023

pursuant to Legislative Decree no. 254/2016 for thesame year; (ii) meetings with the heads of the Global
Business Line Enel Green Power and Thermal Generation in relation to the activities carried out and the risks
existing in the perimeter of competence, as well as thetools used to mitigate their effects; (iii) the analysis of
the degree of compatibility of the main risks related
to the strategic objectives of the Industrial Plan 20242026.

The Nomination and Compensation
Committee:• Supports the Board of Directors, inter alia, in its as-

sessments and decisions relating to the size and optimal composition of the Board itself and its Committees, as well as the remuneration of Directors and Key
management personnel. In this regard, compensation
policy for 2023 specifies that a sizeable portion of thevariable compensation, both short and long term, of
the Chief Executive Officer/General Manager and Key
management personnel is connected, inter alia, to performance objectives concerning sustainability and climate.

The Chairman of the Board of Directors:• In exercising the function of stimulating and coordi-•

nating the activities of the Board of Directors, plays aproactive role in the process of approving and monitoring corporate and sustainability strategies, which
are strongly oriented toward decarbonization and theelectrification of consumption.
During 2023, the Chairman also chaired the Corporate
Governance and Sustainability Committee.

The Chief Executive Officer:• In exercising the powers he/she holds, the CEO has••

defined a sustainable business model by identifying astrategy targeted toward guiding the energy transition
toward a low-carbon model; furthermore, within thescope of the powers assigned, the CEO manages thebusiness activities connected to Enel’s commitment tocombating climate change.
He/she reports to the Board of Directors on the activities carried out when exercising proxies, including thebusiness activities aimed at maintaining Enel’s commitment to tackling climate change.
He/she represents Enel in various initiatives dealing
with sustainability, holding relevant positions in insti-

1Letter to stakeholders••

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

tutions of international importance such as the Global
Investors for Sustainable Development (GISD) Alliancelaunched by the United Nations in 2019.
As the person primarily responsible for the management of the Company, he/she is the person most empowered to deal with institutional investors, providingthem with any appropriate clarifications on matters falling within the management powers entrusted to him/
her, in line with the Policy for the management of engagement with institutional investors and with the generality of Enel’s shareholders and bondholders.
He/she holds the role of Director in charge of setting
up and maintaining the ICRMS.

The Enel organizational model for
management of climate-related issues
Enel has a management team that assigns the responsibilities related to climate issues to the specific Functions
that contribute toward 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 Holding Company Staff Functions are responsible••

for consolidating the scenario analysis and the management of the strategic and financial planning process aimed at promoting the decarbonization of theenergy mix and the electrification of energy demand,
as key actions in combating climate change.
The Global Business Lines are responsible for the development of activities related to promoting renewablegeneration, the optimization of heat capacity, the digitalization of the electricity grid and the developmentof business solutions that enable energy transition andcombating climate change.
The Global Service Functions are responsible for
adopting sustainable criteria, including climate change,in supply chain management and developing digitalsolutions that support the development of technologies enabling energy transition and combating climatechange.

4

Performance 2023

5

Appendix• On a local level, the Regions and Countries have thetask of promoting decarbonization and guiding theenergy transition toward a low-carbon business model, within their areas of responsibility. Furthermore, theEurope and Euro-Mediterranean Affairs Function is responsible for defining the Group’s position on climatechange, low-carbon policies and the regulation of theinternational carbon market on a European level.

Additionally, the Group Investments Committee, chairedby the Chief Executive Officer, grants approval for the expenses for investments related to business development.
This committee also has the task of guaranteeing that all
investments are fully in line with the Group’s commitment
to promoting a low-carbon business model and reaching
decarbonization by 2040.

Climate change incentive andcontribution scheme
The compensation policy for 2023 provides that a significant portion of the long-term variable remuneration of
the Chief Executive Officer/General Manager and executives with strategic responsibilities will be tied to performance objectives in relation to climate change. In particular, in the Long-Term Incentive Plan 2023-2025 theweight of the environmental objective concerning the
reduction of greenhouse gas emissions was increased to
15% of the total – from 10% in the previous plan – andat the same time made more detailed in order to cover a wider range of emissions. This target now reflects
the Scope 1 and 3 GHG emissions intensity relating toIntegrated Power, thus covering both direct emissions
relating to power generation (i.e., Scope 1 emissions) andindirect emissions relating to the generation of powerpurchased and sold by the Group to end customers (i.e.,
Scope 3 emissions). A gate target linked to Group Scope
1 GHG emissions intensity relating to Power Generation
was associated with this target. The changes thus introduced are intended to adequately support the achievement of the 2023-2025 Strategic Plan targets related toclimate change mitigation.

For further details, see the paragraph“Enel’s governance model for sustainability”
in the chapter “Sound governance”.

Zero emissions ambition and just transition

103

Climate change and long-term scenarios
3-3

201-2

TCFD: Strategy

The Enel Group develops short, medium and long-term
scenarios for macroeconomic, financial, energy and climate conditions in order to support planning, capital allocation, strategic positioning, and risk and strategy resilience assessment.
To support its analysis of scenarios and of the external
context, the Group identifies and analyzes short-, medium- and long-term trends to develop an overview of how
structural forces and current macro-trends influence thespeed of transition and the expected impacts in the energy sector and in particular in the businesses in which Enel
operates. This trend mapping provides a basis for defining
actions to orient the positioning of the business, seizing
opportunities in the sector.
Benchmarking external energy scenarios is a key starting
point for constructing robust internal scenarios and consists of analyzing external transition scenarios in order tocompare their results in terms of energy mix, emission
trends and technology choices, and to identify the main
drivers of energy transition for each.

FIVE

STEPS

1

5

2

IMPACTASSESSMENT
3
4

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Sustainability Report 2023

Enel’s scenarios are based on an overall framework so as
to ensure consistency between the energy transition scenario and the physical climate scenario:• the “energy transition scenario” describes how thegeneration and consumption of energy evolves in various sectors in a specific economic, social, policy andregulatory context;• issues concerning future trends in climate variables (interms of frequency and intensity of acute and chronic
phenomena) define the so-called “physical scenario”.
In order to assess the effects of transition and physicalphenomena on the energy system, the Group relies on internal models that describe the energy system for eachcountry under analysis, taking into consideration specifictechnological, social-economic, policy and regulatory aspects.
The process that translates the scenario phenomena into
information that is useful for industrial and strategic decisions can be summarized in five steps:

1.

Identification of trends and factors relevant to thebusiness (e.g., electrification of consumption, heatwaves, etc.)2.

Development of link functions connecting climate/transition scenarios and operating variables

3.

Identification of risks
and opportunities

4.

Calculation of impacts on business(e.g., change in performance, losses, Capex)

5.

Strategic actions: definition and implementation(e.g., capital allocation, resilience plans)1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s energy transition scenarios
The energy transition scenario details how the generationand consumption of energy evolve in a certain geopolitical,
macroeconomic, regulatory and competitive context, depending on the available technology options; it correlateswith a greenhouse gas emission trend and climate scenario and, consequently, a specific temperature increase by
the end of the century compared to pre-industrial values.
The main assumptions considered in defining Enel’s energy transition scenarios concern the macroeconomic andenergy context, regulatory policies and measures, and theevolution, costs and adoption of energy generation, conversion and consumption technologies.
The Group’s reference scenario for planning is a Paris-aligned scenario, which envisages achieving the temperature goals of the Paris Agreement, namely, a rise in
the global average temperature below 2 °C compared topre-industrial levels, and therefore anticipating a higher
level of climate ambition than business as usual, but without necessarily assuming that the Net Zero emissions target will be reached by 2050, considering the current levelof overall ambition at a global level and the slowdown inthe speed of the energy transition that the current macroeconomic and energy environment is causing locally onsome transition variables.
Assumptions on commodity price trends in inputs to theReference scenario consider a sustained increase in theprice of CO2, caused by the gradual reduction of allowances supply in the face of growing demand, and a sharp fallin coal prices, due to decreasing demand, are expectedby 2030. With regard to gas, it is believed that price tensions will ease in the coming years in light of a realignment
between supply and demand at a global level. Finally, oilprices are expected to stabilize gradually, for which it isestimated that demand will peak around 2030.

In order to assess risks and opportunities related to theenergy transition, alternative scenarios were defined withrespect to the reference scenario, depending on the degree of climate ambition assumed globally and locally:• “Slower Transition”, a scenario in which a more medium-term approach is taken to the slowdown observable in the short term in some countries and regions. In
this scenario, fuel demand will peak more gradually, andthis will support energy commodity prices;• “Accelerated Transition”, a scenario in which there isan increase in ambition compared to the Reference
scenario, particularly with regard to certain variables. It
envisages, on the one hand, an acceleration of decarbonization, driven by regulation, and at the same timea more rapid decrease in demand for fossil fuels, which
inevitably will result in lower prices for these commodities in 2030.
With respect to the full achievement of the Paris Agreement to stabilize the global average temperature to within +1.5 °C, the doubt persists that some countries might
continue to take a sluggish approach and fail to adopt
effective measures to reduce their emissions in a timely
manner, thereby delaying the process of decarbonization
toward net zero emissions by 2050. Despite this, Enel operates a business model in line with the highest ambitionof Paris Agreement objectives, namely, one that is consistent with a global average temperature increase of 1.5°C by 2100, as certified by the Science Based Targets initiative (SBTi).

For more information on local transition
scenarios (Italy, Spain, Brazil, Chile, Colombia),
see the “Group Strategy and Risk Management” sectionof the 2023 Integrated Annual Report.

Zero emissions ambition and just transition

105

The physical climate scenario for the purposeof climate adaptation action
Climate change is playing an increasingly prominent role inthese scenarios, with impacts not only on the transitionof the economy towards Net Zero emissions, but also
physical impacts that can be divided into:• acute phenomena, namely short-term but rather intense phenomena such as floods, hurricanes, etc.,with potential impacts on assets (such as damage andbusiness interruptions);• chronic phenomena related to structural changes in
the climate, such as the rising trend in temperatures,rising sea levels etc., which can cause, for example,
constant changes in the output of generation plants
and in electricity consumption profiles in the residential and commercial sectors.
Such phenomena are analyzed by looking at how they will
behave in the future: this is done by selecting the best
available data from the output data of climate models at
various levels of resolution, as well as historical data.
Among the climatic projections developed by the “Intergovernmental Panel on Climate Change” (IPCC) on a
global scale, the Group has chosen three that are in linewith those taken into account in the latest IPCC report aspart of the sixth assessment cycle (AR6). Such scenarios are associated with emission patterns that are linked
to a level of the so-called Representative Concentration
Pathway (RCP), each one being related to one of five social and economic scenarios that the scientific community defines as Shared Socioeconomic Pathways (SSP).
The SSP scenarios include general assumptions such as
those on population, urbanization, and so on. The threephysical scenarios considered by the Group are as follows:• SSP1-RCP 2.6: compatible with a global warming
range below 2 °C, compared with pre-industrial levels(1850-1900) by 2100 (the IPCC projects approximately+1.8 °C on average over the 1850-1900 period); theGroup associates the SSP1-RCP 2.6 scenario with theReference and Accelerated Transition scenarios inanalyses that take into account both physical variables
and transition variables;• SSP2-RCP 4.5: compatible with an intermediate sce-nario, in which an average temperature increase ofaround 2.7 °C is expected by 2100 when comparedwith the 1850-1900 period. The RCP 4.5 scenario best
represents the current global climate and politicalcontext and the associated transition assumptions.
This scenario projects global warming as being consistent with the estimated temperature increase thattakes into account current global policies(6); the Groupassociates the SSP2-RCP 4.5 scenario with the Slower
Transition scenario in analyses that take into accountboth physical variables and transition variables;• SSP5-RCP 8.5: compatible with a scenario where
no particular measures are taken to combat climatechange. According to this scenario, the global temperature is estimated to increase by around +4.4 °C,
compared to pre-industrial levels, by 2100.

The Group sees the RCP 8.5 scenario as a worst-case climate scenario, which is used for assessing the effects ofphysical phenomena in a context in which climate change
is particularly severe, but is not considered likely at present. The RCP 2.6 scenario is used for the assessment ofphysical phenomena and for analyses that consider anenergy transition that is in line with the most ambitious
mitigation targets.
Climate scenarios are global in nature. Accordingly, inorder to determine the effects in the areas of relevancefor the Group, they must be analyzed locally. The Group’s
active partnerships include an ongoing collaboration with
the Department of Geosciences of the International Centre for Theoretical Physics (ICTP) in Trieste. As part of thiscollaboration, the ICTP provides projections for the main
climate variables with a grid resolution that varies fromapproximately 12 km to approximately 100 km on the side
and a time horizon of 2020-2050. The main variables aretemperature, rainfall and snowfall, and solar radiation.
In this phase of the study, the future projections wereanalyzed for Italy, Spain and all countries of interest to
the Group in South America, Central America and North
America, obtaining, also due to the use of the ensembleof models, a more definite representation of the physical scenario. Similarly, the Group is also analyzing climate
projection data for Africa, South Asia and South-East
Asia, so as to cover all the main countries and regions
where the Group operates globally.

(6) Climate Action Tracker thermometer, global warming estimates for 2100 considering the current “Policies & action” and “2030 targets only” (updated as ofDecember 2023).

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Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

In addition to the climate scenarios provided by ICTP, theGroup also uses Natural Hazard maps, which make it possible to obtain, with a high spatial resolution, the return
times of a series of events such as storms, hurricanes
and floods. The use of these maps is widely consolidat-

Analysis of physical scenarios. Integrationof climate scenarios into the OpenCountry Risk model
Enel has adopted a quantitative Open Country Risk
assessment model that can accurately monitor
the level of risk of countries within its scope,
which includes four elements of risk: economic,
institutional and political, social and energy.
This work has made it possible to also integrate
climate change aspects into the Open Country Risk
model.
More specifically, by introducing extreme weather
events into the Open Country Risk model, theevolution of several climate hazards can be

4

Performance 2023

5

Appendix

ed in the Group, which already uses this data based ona historical perspective to optimize insurance strategies.
Furthermore, work is underway in order to be able to use
this information also when processed in compliance withthe projections of the climate scenarios.

assessed, both in the country and on a global
scale, in a uniform manner. In particular, a modular
approach was adopted that will enable analyses
to be progressively improved by including new
physical phenomena and fine-tuning methodologies
and reference data. At present, it includes four
climate phenomena: two are related to extreme
temperatures, one to heavy rainfall and another todrought. In addition, the possibility of introducing
other phenomena such as extreme wind and rising
sea levels is being looked into. Phenomena aredescribed with a numerical index, developed bytaking into consideration global distribution, witha resolution of approximately 100 km x 100 km andsummarized in a composite index.

For more information on the physical scenariosand variables considered, including acute phenomena(heat waves, extreme precipitation, cold spells, fires)and chronic phenomena (temperature, precipitation),see the “Group Strategy and Risk Management”
section of the 2023 Integrated Annual Report.

The strategy for tackling climate change
3-3

201-2

TCFD: Strategy

Enel’s climate action efforts are one of the key pillars of
the Group’s strategy in both the short and long term. Enelplays its part on the one hand through its contribution todriving the global energy transition towards a zero-emission model as a mitigation lever, and on the other by defining the best adaptation measures in order to adjust tochanges that will, with a greater or lesser frequency andintensity, eventually take place.

Mitigation includes all initiatives intended to minimize theimpact on the climate of the Group’s activities and thoseof its stakeholders, in other words, all measures taken to
reduce greenhouse gas emissions.
Adaptation, instead, includes all the initiatives implemented by Enel so as to make its assets more resilient, increase
its capacity to react to extreme climatic events, and comeup with strategic options and business models that willaddress various needs as the climate changes.

Zero emissions ambition and just transition

107

ENEL’S CLIMATE MITIGATION STRATEGY
Enelʹsstrategy for climate mitigation

MAIN BUSINESS DRIVERS

MAIN COMMITMENTS

ENEL COLLABORATES WITH ALL STAKEHOLDERS TO ADDRESS CLIMATE CHANGE
FINANCIAL COMMUNITY
AND PARTNERS• Enel Capex plan fullyaligned with Net Zerotargets to 2040
• Sustainability-Linked
instruments to finance
Enel's decarbonization
strategy

PLANETEMPLOYEES, SUPPLIERS
AND COMMUNITIESCUSTOMERS• Exit from coal power
generation• Abandoning gas by
2040• 100% renewable fleet
by 2040• Exit from gas retailby 2040• 100% sales fromrenewable sources by2040• Decarbonization of the
supply chain by 2040
• Dialogue, engagement
and collaboration in linewith the principles of ajust transition

SHIFTING ENEL’S BUSINESS MODEL TOWARD ZERO EMISSIONS~% GHG-FREE
POWER GENERATIONOUT OF TOTAL(2)~% RENEWABLE
CAPACITY OUTOF TOTAL(1)COAL-FIREDCAPACITY
INSTALLED (GW)% OF GRIDSCUSTOMERSDIGITALIZEDGAS VOLUMES –RETAIL MARKET
(BCM)

8.3
71

78

85

100

65

4.6
2023 2026 2030 2040

FINANCIAL FIGURES

2023 2026 2030 2040

100
~75 86 90

71

5.3

~100

0

Phase-out

2023

8.4

2027

2023 2026 2030

2023 2026 2030 2040

ALLOCATING INVESTMENT TOACCELERATE THE ENERGY TRANSITION
4% 5%
Grids
Renewables

30%

BESS

2024-2026

35.8 bln euros

53%

Flexible GX
Customers

IMPACT ON CLIMATE

8%

DECARBONIZING THE ENTIRE VALUE CHAIN
Absolute GHG emissions (Scope 1, 2 and 3), MtCO2eq
190
-50%

-68%

-99%

-100%

60

Net ZeroEnel’sambition

< 2.5

0

2030

2040

2040

Reduction vs 2017

94.3

2017

2023

(1) Includes managed capacity and BESS.
(2) Includes managed power generation.

The Group leads the energy transition, through the decarbonization of electricity generation, the push for electrification of end-use consumption, and the development anddigitalization of distribution networks. These factors represent opportunities both to increase value creation for all
stakeholders and to contribute to a more rapid achievementof the Paris Agreement goals as well as the Sustainable Development Goals (SDGs) defined by the United Nations in the2030 Agenda.
108

Sustainability Report 2023

Specifically, the main mitigation actions the Group is taking are as follows.
• Coal phase-out: the Group confirms its goal to exitfrom coal power generation generation by 2027, subject to approval from the relevant authorities. As far as
the conversion of coal-fired power plants is concerned,
the Group will evaluate the best available technologies,
based on the needs indicated by the distribution network operators.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

ENEL’S COMMITMENT TO
COAL PHASE-OUT
EVOLUTION OF CAPACITY
OF COAL-FIRED POWER PLANTS

Performance 2023

5

Appendix

Over the last decade, Enel has progressively reduced its exposure to coal power generation, in line with the strategy undertaken in terms of decarbonization of generation.
18.8%
16.8

19.5%
16.1

Installed capacity (GW)

-

4

18.8%
16.0

18.5%
15.8
13.9%

% of consolidated capacity

11.7

10.6%
8.9

7.9%
6.9

7.8%
6.6

5.7%
4.6

Coal-fired plants, no.

2015

2016

2017

2018

2019

2020

2021

2022

2023

19

17

16

16

12

10

8

7

5

In 2023, the Fusina plant in Italy and As Pontes plant in Spain,with a capacity of 0.5 GW and 1.4 GW respectively, were takenout of service(1).

To date, 5 plants therefore remain available for operation: 3 inItaly, 1 in Spain and 1 in Colombia.

TORREVALDALIGA NORD – 1.8 GW• Essential plant: No• Planned phase-out: Progressive to 2025
• Risk factors: The authorities may
delay closure authorization

SULCIS – 0.5 GW• Essential plant: Yes• Planned phase-out: 2027
• Risk factors: Closure of plant subject to theconstruction of the Tyrrhenian link Sardinia-mainland
Italy transmission link

FEDERICO II – 1.8 GW

ALCUDIA – 0.2 GW• Essential plant: No (production limitation)• Planned phase-out: 2027
• Risk factors: Plant closure subject
to the realization of the second
Mallorca-mainland Spain transmission link

TERMOZIPA – 0.2 GW• Essential plant: Yes• Planned phase-out: 2027

• Essential plant: No• Planned phase-out: Progressive within 2025
• Risk factors: The authorities may delay closure authorization

Enel's coal phase-out in Italy and Spain is in line with the twocountries’ objective of phasing out coal-fired power generation.
The process of closing a coal-fired power plant is not solely theGroup’s responsibility, but is subject to an approval procedure.
For example, in Italy, in line with the legal provisions currently inforce on the decommissioning of generation plants (i.e., Article 1
quinquies, Legislative Decree 239/2003), the planned steps are:i. Enel’s application to the Italian Ministry of the Environment
and Energy Security (“MASE”) for the purpose of authorizing the definitive decommissioning of the plant;
ii. MASE requests an opinion from Terna on the possibility ofproceeding with the decommissioning of the aforementioned plant;iii. Terna, following assessments of the adequacy of the electricity system, provides an opinion to MASE;
iv. following Terna’s opinion, MASE communicates its acceptance or refusal of the final decommissioning.

Enel’s coal exit target by 2027, subject to the authorization
process set out above, may be subject to changes on thebasis of the new targets contained in the PNIEC for Italy andSpain, which will be subject to approval by the European
Commission in 2024.
In line with the commitment to a just transition, the exit planentails:• the redeployment of existing skills and the development of
new ones, as well as the transfer of know-how for Enel people;• the repurposing/regeneration of sites through requalification into innovative integrated energy hubs, i.e., sites where
electricity production coexist, in particular photovoltaics
and storage systems (BESS) as well as projects developedby third parties in line with sustainability programs agreed
with the territories in the area of influence, so as to promote the economic and social development and general
well-being of the community.

(1) With particular reference to Italy, the decommissioning is definitive, i.e.:• from the point of view of the electricity market and the national grid operator (Terna), the plant is no longer present among the electricity production plants
and consequently no longer participates in the electricity market and cannot be commissioned directly by Terna;• from a corporate point of view, there are no longer any MW associated with that installed capacity and there will therefore be no revenues associated with
its operation;• from a plant engineering point of view, there is no longer any coal in the power plant depots and the process of permanent safety of the mechanical andelectrical machinery present has begun.

Zero emissions ambition and just transition109• Decarbonization of the energy mix: the Group is com-••mitted to achieving 100% renewable capacity by 2040,
with an interim target of approximately 85% in 2030, up
from 71% in 2023, including managed capacity and Battery Energy Storage Systems (BESS). The accelerationof renewables, together with the closure of coal-fired
plants, will achieve greenhouse gas-free generation ofaround 90% by 2030 and 100% by 2040 (considering
consolidated and managed generation), due also theGroup’s exit from thermal power generation by thesame year.
The push for electrification and the retail gas phaseout: the Group is committed to encouraging customers
to shift from gas to electricity through the developmentof more efficient and convenient electric technologies
for consumers, minimizing the gas portfolio of customers in the medium and long term. In particular, Enelplans to increase its customers’(7) unit consumptionof electricity from 2.65 MWh/customer/year in 2023
to around 3.5 MWh/customer/year in 2030, helping
to reduce gas volumes sold to about 5.3 bcm in 2030
(compared to 8.3 bcm in 2023), aiming to complete thephase-out of gas sales to end customers by 2040. Ultimately, 100% of the electricity sold to the end customer
will be generated from renewable sources.
Grids development and enhancement: the grids, as thecore foundation of the energy transition, will become
more digital and flexible to connect millions of customers and prosumers and balance the intermittent supplyof energy generated directly from renewable plants oraccumulated in storage systems. Enel expects to reachabout 6 million distributed generation connections by
2030 and also 100% digitalization of grid customers,compared to 65% in 2023.

The climate change mitigation strategy will help reduce
direct and indirect greenhouse gas emissions along theentire value chain by around 68% by 2030 and at least 99%
by 2040, compared to 2017, well above the overall threshold set by the main international standards (90%). This
reduction will be implemented through various targets(7) “Business to consumer” (B2C) clients in Italy and Iberia.

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Sustainability Report 2023

covering both direct and indirect emissions throughout
the Group’s value chain, in line with the Paris Agreement
and the 1.5 °C scenario, as certified by the Science Based
Targets initiative (“SBTi”) and detailed in the paragraph“Enel’s roadmap to decarbonization” in this Sustainability
Report.
In any case, the Group’s ambition is to aim for zero emissions, both direct and indirect, although several exogenous factors shall be overcome in the medium and longterm, including the development of new large-scale emission-free technology solutions in the supply chain, as well
as changes in certain market conditions and policies topromote emission-free business models.
It is estimated that any residual emissions remaining in
2040, in any case unrelated to direct emissions frompower generation and indirect emissions from the sale ofelectricity and gas where all emissions are expected to bezero, will amount to less than 2.5 MtCO2eq annually. In thiscase, to achieve the target of net zero emissions validated by the SBTi, from 2040 onward the Group will mitigate
any impact by removing carbon equivalent volumes fromthe atmosphere, primarily by building a portfolio of carbon removal credits linked to high-quality, high-integrity
nature-based and technology-based solutions with proven long-term durability, managing potential risks throughportfolio diversification by technology and country.
In line with the Group’s commitment to a just transition,action is being taken with regard to the requalification,
retraining and self-learning of direct and indirect workers, the provision of support to supply chain companies
to help business diversification and strengthen resilience,the creation of value for communities in terms of accessto local job opportunities, and the facilitation of access to
products and services for customers.
The Group is continuously attentive to people and its
stakeholders, contributing to sustainable progress also
through innovation and digitalization, which act as accelerators of growth.

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix2024-2026 Strategic Plan
The new 2024-2026 Strategic Plan, unveiled on CapitalMarkets Day in November 2023, places environmental andfinancial sustainability as one of the three pillars of the newstrategy, through which Enel contributes to climate action,
the electrification of consumption and the energy transition, while pursuing value creation and strengthening theGroup’s creditworthiness.
For the 2024-2026 period, the Group has outlined an ambitious total gross investment plan of approximately 35.8
billion euros, strategically spread across different countries
and regions with 49% destined for Italy, 25% to Spain, 19%
to Latin America, and the remaining 7% to North America.
Regarding renewables, the Group has planned gross investments of approximately 12.1 billion euros between
2024 and 2026, and it specifically plans to invest in onshore wind, solar, and battery storage (BESS). The Group’s
new approach to investment in renewables is based on
three different business models:• an Ownership business model, in which the Groupholds a 100% stake, which will be applied mainly in Italy
and Iberia;• a Partnership business model, in which the Group holds
a 50% stake (and less than 100%);• a Stewardship business model, in which the Groupholds a stake of 50% or less, which will continue to apply
in the non-core countries of the Group.
Between 2024 and 2026, this new approach is expected to enable the Group to create about 13.4 GW of new
renewable capacity in all countries and regions where it
operates. In 2026, the Group expects its consolidated andmanaged renewable capacity to increase to approximately
73 GW from about 62 GW in 2023 (55.5 GW of consolidated capacity and 6.2 GW of managed capacity), with theshare of consolidated and managed generation with zero
emissions reaching around 86%, up from 75% in 2023.
In addition, regarding the decarbonization process, theplan is to gradually reduce investments in new carbon-intensitve assets until they get to zero in 2025. Specifically, in
2024-2026, the Group plans to invest less than 3% of grossinvestment in thermoelectric power generation, largely
dedicated to maintaining existing plants, while investment
in new plant development will be substantially limited to theconversion from coal to CCGT power at the Fusina power
plant, which is scheduled for completion by 2024.
Regarding grids, the Group plans to invest around 18.6 billion euros over the 2024-2026 period. Grid investment is
expected to focus on improvements in quality, resilienceto the effects of climate change, and digitalization, as wellas on new connections.
As for customers, the Group has planned gross investments of approximately 3 billion euros between 2024 and2026 that, among other priorities, will also help promote
the electrification of consumption, supporting customers
in the decarbonization process.
More than 90% of the gross capital expenditure in 20242026 is in line with the United Nations Sustainable Development Goals (SDG), directly pursuing SDG 7 (“Affordable
and clean energy”), 9 (“Industry, innovation and infrastructure”) and 11 (“Sustainable cities and communities”), which
are all related to SDG 13 (“Climate action”). The investments envisaged in the Group’s Strategic Plan are in linewith the decarbonization and greenhouse gas reduction
targets, based on a specific methodology whereby investments made in renewables and retail power inherently fallunder SDG 7, investments in the distribution network fallunder SDG 9, and investments in Enel X are related to SDG
11. Therefore, the over 90% referred to above does not include investments in conventional generation (including
investments in maintenance) and in retail gas.
In addition, over 80% of the Group’s investments in the2024-2026 period will be aligned with the EU Taxonomy
criteria, as they will make a substantial contribution to climate change mitigation.

For more information on the Group’s strategy,
see the “Group Strategy and Risk Management”
section of the 2023 Integrated Annual Report.

Zero emissions ambition and just transition

111

Enel’s resilience and adaptation to climate change

SCENARIOINTEGRATIONVULNERABILITYASSESSMENT

PRIORITIZATION

ADAPTATION
PLANSHigh level (e.g., OpenCountry Risk, evolution ofenergy system)

Analysis of vulnerabilities
to quantify risk at the asset
level (existing and newinvestment)

Specification of adaptation
priorities at the local leveland main adaptation risks
and actions at the country
level

Development oflong-term adaptation plans
to increase resilience

Site specific (e.g., highresolution climate data)

The application of long-term climate scenarios makes it
possible to prepare adaptation plans for the Group’s portfolio of assets and activities. Climate scenarios are developed by identifying the physical phenomena that are most
relevant to each business (such as heat waves, extreme
rainfall, fire risk, etc.) in order to produce analyses thatprovide not only high-level indications (such as country
risk indices that can be compared with each other), whichmake it possible to study physical impacts at an individualsite. This approach applies to both the existing portfolio
and to new investments.
By assessing the vulnerability of assets, priority actions toincrease resilience can be identified.
The Group implements solutions to climate change adaptation by taking a comprehensive approach, which involves assessing the potential impacts in order to properly target the measures required to improve the ability
to respond to adverse events (Response Management)
and to increase business resilience (Resiliency Measures),consequently reducing the risk of adverse events having a
Business Linenegative impact in the future. Moreover, the expertise andtools developed to analyze the effects of climate change
can be used to create value, for example by devising new
business options aimed at offering solutions that facilitate
the adaptation of communities and all stakeholders.
Adaptation solutions can include actions, policies andbest practices implemented in the short term, as well as
long-term decisions.
For new investments, in line with the general approach, action can also be taken early in the design and construction
phase to reduce the impact of climate risks, for example
by taking into account in the design phase climate scenarios and analyses of the vulnerability of assets to specificphenomena in order to implement resilient solutions.
The following table shows a high-level summary that represents the type of actions that Enel implements for proper management of adverse events and to increase resilience to weather phenomena and their evolution due toclimate change.

A. Resiliency Measures: Enhancement of asset resilience
Existing assets
1. Guidelines for risk assessment and hydraulic technology design
2.	“Lessons learned feedback” processes from O&M towards
E&C and BD

ENEL GREEN
POWER ANDTHERMAL
GENERATIONENEL GRIDSENEL XGLOBAL RETAIL112

New constructions
In addition to what has been done for existing assets:
1.	Climate Change Risk Assessment (CCRA) included inenvironmental impact documents (pilot)

B. Response Management: Management of adverse
eventsExisting assets
1.	Incident and critical event management
2.	Site-specific emergency management plans andprocedures
3.	Specific tools for predicting imminent extreme
eventsExisting assets and new constructions
1.	Guidelines for defining network resilience enhancement plans(e.g., the e-distribuzione “Network Resilience Enhancement
Plan”)
2.	Strategies and guidelines on risk prevention actions on the
distribution network
3.	The Resilience Plan in Italy and Network Strength in Colombia

Existing assets
1.	Strategies and guidelines on readiness, response,
and recovery actions on the distribution network
2.	General guidelines for emergency and critical event
management
3.	Risk prevention and preparation measures inthe event of fire on electrical installations (lines,
transformers, etc.)

Existing assets
1.	Preliminary analysis of the impact of medium to long-termclimate change

Existing assets
1.	Enel X Critical Event Management

Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Enel also completed a project dedicated to compiling acatalog of practical interventions aimed at strengthening
the resilience of assets and their capacity to respond to
the possible effects of climate change. It includes targeted actions for each of the climate events relevant to thecountries and regions of interest to the Group, differentiated based on the different technologies of the assets
held in these areas.
This catalog, which is maintained and updated cyclically
based on emerging needs and refined analyses, includes
more than 100 possible actions, including:• weather alerting (which includes the use of various tools
to monitor and manage assets and natural resources);• automation (for example, on medium voltage networks
to reduce the impact of faults on customers in terms of
SAIDI and SAIFI);

4

Performance 2023

5

Appendix• structural reinforcement of the entire asset park, fo••

cusing in particular on critical components;
continuous training of personnel;
maintenance and care of the vegetation and environment immediately surrounding the asset.

The catalog allows the choice, based on a cost-benefit
analysis, of the most cost-effective action to take basedon the anticipated risk scenarios in each specific situation.

For more information on the adaptation
and resilience actions carried out in each Business Line,see the “Group Strategy and Risk Management”
section of the 2023 Integrated Annual Report.

Risks and opportunities connected with climate change
3-3

201-2 TCFD: Strategy and Risk Management

The process of defining the Group’s strategy is accompanied by a careful analysis of the risks and opportunities
connected to it, also including the aspects related to climate change. Every year, before the Board of Directors examines the Strategic Plan, the Control and Risk Committee
is presented with a quantitative analysis of the risks andopportunities related to the Group’s strategic positioning,which includes aspects related to the climate, such as regulatory factors and weather and climate phenomena.
In order to facilitate the proper identification and management of risks and opportunities related to climate change,a Group policy was published in 2021 that outlines common guidelines for assessing the risks and opportunities
arising from climate change. The “Climate change risks
and opportunities” policy defines a shared approach forthe integration of climate change and energy transition
issues into the Group’s processes and activities, thus informing industrial and strategic choices to improve business resilience and long-term sustainable value creation,
consistent with the adaptation and mitigation strategy.
The main steps considered in the policy are as follows:• prioritizing phenomena and scenario analysis. These
activities include the identification of physical and transition phenomena relevant to the Group and the consequent development of scenarios to be considered anddeveloped through analysis and processing of data frominternal and external sources. Functions can be developed for the phenomena identified that link the scenarios (e.g., data on the change in renewables) to business
operations (e.g., the change in potential output);• impact assessment. Includes all analyses and activities
necessary to quantify the effects at the operational,•

economic and financial levels, depending on the processes into which these are integrated (e.g., design of
new builds or operational performance appraisal, etc.);
operational and strategic actions. Information fromprevious activities is integrated into processes, informing Group decisions and business activities. Examplesof activities and processes that benefit are capital allocation, e.g., for evaluating investments on existing
assets or new projects; defining resilience plans, risk
management and financing activities and engineeringand business development activities.

In order to identify the main types of risk and opportunity
and their impact on the business in a structured mannerconsistent with TCFD recommendations and the latest
climate change reporting standards, Enel has adopted aframework that clearly shows the main relationships between scenario variables and types of risk and opportunity, specifying the strategic and operational approaches
to managing the same, also taking into account mitigation
and adaptation measures. Two main macro-categories ofrisks/opportunities are identified:• those connected with developments in physical variables;• those connected to the evolution of the transition scenarios.
The framework described is constructed with a view tooverall consistency, making it possible to analyze and evaluate the impact of the physical (e.g., climate change) andtransition (e.g., the energy context) phenomena according
to solid, alternative scenarios created using a quantitativeand model-based approach in consultation with both internal stakeholders and authoritative external resources.

Zero emissions ambition and just transition

113

Framework on key risks and opportunities
Scenario
phenomena Time horizon

Transition

Transition

From shortterm (1-3
years)

From medium
term (20272034)

From medium
term (20272034)

Risk and opportunity
driverDescription

Management approach

Policy & Regulation

Risk/opportunity: policies on
CO2 prices and emissions, energy
transition policies and financial
instruments, revision of market
design and permitting procedures,and resilience regulation.

The Group is minimizing its exposure to risks
through progressive decarbonization and thefocus of the business on renewables, grids andcustomers. The business model is designed tomaximize the benefits of the Group’s integrated
position in the core countries and leveraging
partnership and stewardship activities, whichenables to exploit the opportunities connectedwith the energy transition. The Group is also
actively contributing to the formation of public
policies through its advocacy efforts. These
activities are conducted within platforms for
dialogue with stakeholders that explore ambitious
national decarbonization scenarios in the various
countries in which Enel operates.

Market

The Group is maximizing opportunities byadopting a strategy founded on the energy
transition, focusing on the electrification of
Risk/opportunity: changes in theenergy consumption and the development ofprices of commodities, raw materials renewables and a geographical positioning inand energy, evolution of energy
countries in which it has an integrated presence.
mix, changes in retail consumption,
Considering alternative transition scenarios, thechanges in competitive environment. Group assesses the impact of different commodity
price trends, changes in the share of renewables in
the generation mix and the electrification of final
consumption.

Product & Services

Transition
From medium
term (20272034)

Acutephysical

Chronic
physical

114

From shortterm (1-3
years)

Technology

Extreme events

Medium (20272034) and long
Marketterm (20352050)

Sustainability Report 2023

Risk/opportunity: increase/decreasein margins and greater scope forinvestment as a consequence ofthe transition in terms of greater
penetration of electrical mobility,
distributed generation and newtechnologies for the direct andindirect electrification of final
consumption.

The Group is maximizing opportunities thanks to its
strong positioning in new businesses and "beyond
commodity" services. In addition, considering
alternative transition scenarios, the Group assesses
the impact of different trends in the electrificationof consumption.
The Group is maximizing opportunities thanks
to its strong strategic positioning in new
businesses and grids at the global level. With thepenetration of direct and indirect electrification
technologies, considering alternative scenarios,
the Group assesses the potential opportunities
for scaling existing and potential businesses andfor the development of new solutions linked todigitalization and resilience of power grids.

Risk: especially extreme weather/climate events, which can damage
assets and interrupt operations .

The Group adopts best practices to manage therestoration of service as quickly as possible. The
Group also works to implement investments inresilience (e.g., the Italian case). With regard torisk assessment in insurance, the Group has a loss
prevention program for property risk that also
assesses the main exposures to natural events,
supported by preventive maintenance activities andinternal risk management policies.
Looking forward, the assessments will also include
the potential impacts of long-term trends in themost significant climate variables.

Risk/opportunity: increase or
decrease in electricity demand
under influence of temperature,
whose variations can impact thebusiness. Increase or decrease inrenewables output, which may beaffected by structural changes inresource availability.

The Group's geographical and technologicaldiversification means that the impact of changes(positive and negative) in a single variable ismitigated at the global level. In order to ensurethat operations always take account of weather
and climate phenomena, the Group adopts a
range of practices such as, for example, weather
forecasting, real-time monitoring of generation
plants and long-term climate scenarios toidentify any chronic changes in renewable source
availability.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

The framework outlined above also highlights the relationships that link the physical and transition scenarios withthe potential impact on the Group’s business. These effects can be assessed from the perspective of three time
horizons: short to medium term (1-3 years), in which sensitivity analyses based on the 2024-2026 Strategic Plan pre-4

Performance 2023

5

Appendixsented to the markets in 2023 can be performed; medium
term (2027-2034), in which it is possible to assess the effects of the energy transition; and long term (2035-2050),
in which chronic structural changes in the climate should
begin to emerge.

Assessment of risks related to the energy transition
To quantify the risks and opportunities arising from theenergy transition in the long term, two transition scenarios, described in the paragraph on “Enel’s energy transition
scenarios” have been considered.
In the Enel (Reference) scenario, the progressive electrification of final energy consumption – particularly of transportation and the residential sector – leads to a considerable increase in electricity consumption and thus growthin the demand for electricity. This dynamic reduces therisk arising from the gradual increase of renewables in theenergy mix, which could lead to a reduction in the wholesale electricity price; moreover, market design revisions
that favor long-term remuneration would have a positive
impact in terms of the greater visibility of returns in themedium and long term.
The effects of the Slower Transition and Accelerated Transition scenarios on the variables most likely to impact thebusiness have therefore been identified, in particular electricity demand, influenced by the dynamics of electrification of consumption, and thus penetration of electric
technologies and the electricity generation mix.
With regard to the electrification of consumption, theSlower Transition scenario predicts lower penetration
rates of the most efficient electric technologies, particularly electric cars and heat pumps, causing a decreasein electric demand compared to the Reference scenario,
which is estimated to result in moderate impacts on the
Retail commodity business & beyond. At the same time,
lower electricity demand results in less space to develop
renewable capacity, which has an impact on the gener-

ation business; this is partially offset by higher electricity
prices compared to a scenario with more renewables.
As regards the Accelerated Transition scenario, a more
rapid reduction in the cost of green hydrogen generation
technologies is assumed. This results in increased penetration of this energy carrier, at the expense of blue andgray hydrogen, with a consequent additive effect on domestic electricity demand and renewable capacity installations compared to the Reference scenario.
All scenarios, albeit to a greater extent the Reference andAccelerated Transition scenarios, envisage an increasingly important role for grids: indeed, a significant increaseis expected in distributed generation and in other resources, such as storage systems, greater penetration ofelectric mobility with the relative charging infrastructures,
as well as the increasing rate of the electrification of consumption. This context will involve a decentralization of
the extraction/feed-in points, an increase in electric demand and the average requested power, a considerable
variation in energy flows, which will require dynamic andflexible grid management. The Group therefore expects
that in this scenario incremental investments will be necessary to guarantee the connections and suitable levelsof quality and resilience, by promoting the adoption of
innovative operating models. These investments must be
accompanied by coherent policy and regulation scenarios
to guarantee suitable economic returns for the Enel GridsBusiness Line.

Zero emissions ambition and just transition

115

Upside (Accelerated Transition vs Reference)Downside (Slower Transition vs Reference)

Risk/
Scenario
opportunity
phenomena category
Description

Transition

Transition

Transition

(1)

116

MarketMarketTimehorizonDescription of
impactGBL
involved

Scope

Risk/opportunity:
more/less scopefor investment in
new renewables
capacity and power Medium
price changes
term(1)
corresponding todifferent degrees
of renewables
penetration

Two alternativetransition scenarios
to the Reference
scenario are
considered, withrespect to which theGroup has evaluatedthe impact ofdifferent degrees
of renewables
penetration on thereference power
price and additional
capacity

Risk/opportunity:
smaller/larger margins
dependingon degree ofelectrification of
consumption

Considering twoalternative transition
scenarios to the
Global Enel
Reference scenario, X Retail
the Group has
evaluated the
Global Grids
effects of a change
Enelin average unit
Group
consumption andelectricity demand
as a result of greater/
lesser electrificationof energy
consumption

Risk/opportunity:
larger/smaller
margins andmore/less scopefor investment
Product and depending on
Servicesthe effects of thetransition in termsof penetration of
new technologies
and electrictransport

2030 benchmark.

Sustainability Report 2023

Mediumterm(1)

Mediumterm(1)

Quantification - range
Quantification Impact type
Upside/ <€100 €100-300 >€300
Downside milmilmil

GlobalGeneration
Global Enel
X Retail

Considering
two alternativetransition scenarios
to the Reference
scenario, the Group Global Enelhas evaluated
X Retailthe effects ofdifferent trends inthe electrificationof transport andthe electrificationof domestic
consumption

UpsideEnel
Group

EBITDA/year

Downside

UpsideEBITDA/year

Downside

UpsideEnel
Group

Adoption of
measures toincrease Customer
Base in order
to compensate
for the negative
impact on margins

EBITDA/year

Downside

Adoption of
measures toincrease Customer
Base in order
to compensate
for the negative
impact on margins

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Assessment of risks arising from physical phenomena
Chronic phenomena
The initial scenario analysis has shown that chronic structural changes will take place in the recent trends of physical variables, which will be appreciable in the long term.
However, in order to obtain an indicative estimate of thepotential impacts and to anticipate the possibility of theearly onset of chronic effects, it is possible to test sen-sitivity of the Industrial Plan to the factors potentiallyaffected by the physical scenario, taking into account historical weather variability and expected long-term climatechanges. The existing Industrial Plan was drafted basedon the information contained in the average scenarios
for chronic phenomena, which allowed for considerationof the possible effects of trends in climatic variables. The
table below shows the results of this analysis.

Upside scenario

Scenario
phenomena

Chronic
physical

Chronic
physical

Risk/
opportunity
category
Description

MarketMarketRisk/
opportunity:
increased or
decreased
electricity
demandRisk/
opportunity:
increase or
decrease inrenewable
generation

Downside scenario
Quantification - rangeTimehorizonMedium/long term

Medium/long term

Description of impact

GBL
involved

Electricity demand is also
Globalinfluenced by temperature,
Generation
fluctuations in which can
impact the business. Although Global Grids
structural changes should
not emerge in the shortterm, sensitivity analyses
of variations in electricity
demand are used, in line withthe climate scenarios analyzed
Renewable generation is
influenced by the availabilityof resources, fluctuations inwhich can impact the business.
Although structural changes
should not emerge in the
short term, the sensitivityof the Group's results wasassessed using sensitivity
analyses considering historicalmeteorological volatility
and variations in generation
potential in the different climate
scenarios

Acute phenomena
In the various cases, the acute physical phenomena suchas wind storms, floods, heat waves, severe cold, etc.,
demonstrate a high level of intensity yet do not have a very
high occurrence frequency in the short term, but, considering the medium and long-term climatic scenarios, thiswill increase considerably in the future.
For the above reasons, the Group currently finds itself
having to manage risks arising from extreme events inthe short term.

Scope

Quantification Impact type

Upside/<€100
Downside mil€100300 mil

>€300
mil

UpsideEnel
Group

EBITDA/year
Downside

UpsideGlobalGeneration

Enel
Group

EBITDA/year
Downside

The analysis of probability, vulnerability and exposure toacute events provides the basis for assessing the risks
arising from extreme events. From this point of view, theGroup differentiates the risk analysis with respect to theclimate change scenarios, depending on the specific nature of the various associated time periods. The following
table summarizes the scheme adopted for the evaluationof impacts deriving from acute physical phenomena.

Time horizon

Hazards

Vulnerability

Short term

Hazard maps based on historical
data and meteorological models

Medium and long term

Hazard maps and specificstudies for different IPCC RCP
climate scenarios

Vulnerability, being related tothe type of extreme event, to thespecifics of the damage type andto the technical requirementsof the technology underconsideration, Vulnerability isessentially independent of time
horizons

ExposureGroup values in the short termLong-term evolution of GroupvaluesZero emissions ambition and just transition

117

Over the short term (1-3 years), the Group will implement
actions targeted at reducing the impacts of extreme catastrophic events on the business. It is possible to distinguish two main types of actions: putting in place effective
insurance cover and the various climate change adaptation activities related to preventing damage that could result from extreme events.
With regard to the impact of acute physical events, theEnel Group has a well-diversified portfolio in terms oftechnologies, geographic distribution, and asset size, andconsequently, the portfolio’s exposure to natural risks is

Institutional collaboration with regard
to climate risk analysis: Fondazione
Centro Studi Enel (Enel Foundation) andSACE
Enel Foundation, in collaboration with SACE, an
Italian insurance-financial group, developed an
evolutionary Country Risk model which enables more
timely assessments and more effective investments
for sustainable development for all, in addition tohighlighting and preventing possible losses arisingfrom non-payment and political risks related to theinternationalization of companies.

For more information on risk assessments
arising from physical phenomena and transition,
see the “Group Strategy and Risk Management”
section of the 2023 Integrated Annual Report.

118

Sustainability Report 2023

also diversified. The Group implements various risk mitigation measures which, as will be described below, include
both insurance coverage and other managerial and operational actions aimed at further reducing the Company’srisk profile.
Indeed, empirical evidence shows negligible repercussions of such risks, as demonstrated by data for the last
5 years. Considering the most relevant events, defined as
those with a gross impact >10 million euros, the cumulativevalue of the gross impact amounts to ~130 million euros,
which represents less than 0.06% of the Group’s insured
values as at 2023, or ~220 billion euros.

The model integrates traditional methodologies forranking country risk, highlighting the importanceof ensuring an equitable distribution of wealth,combating climate change and accelerating theenergy transition as prerequisites for ensuringprosperity in the new normal.
In particular, summary indicators defining the wellbeing, climate risk and energy transition scenarios foreach country have been included in the “SACE Risk
Map”.
Further details can be found at the following link:
https://www.sace.it/en/appendix-enel-foundation.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s performance in tackling climate change
3-3

305-1

305-2

305-3

305-4

305-5

305-6

TCFD: Metrics & Targets

Methodology for calculating greenhouse gas emissions
The current internal policy, “Definition and method of
calculating GHG emissions”, defines the common framework for the collection and analysis of GHG emissions dataand performance, taking into account the internal and external targets and potential benefits to the Group and to
Enel stakeholders. The procedure entails compiling andharmonizing definitions and methods, adopted internallyand based on international standards, for quantifying theimpact of Enel Group’s GHG emissions, outlining the business processes aimed at measuring the various related
aspects.
Primary operational and GHG data are collected throughthe Group’s environmental database on an annual basis,
with the exception of certain specific data which are collected more frequently. According to technological andgeographical criteria, data is collected directly from thedifferent organizational levels (site or country level, depending on the source) and is subject to formal internal
checks and evaluation for consistency before being validated by the Business Lines and at the consolidated level.
In 2023, Enel launched an action plan to strengthen the
GHG emissions accountability and reporting process that,among other priorities, aims to: review and update themethodology for calculating specific existing GHG sources; improve existing processes and increase efficiency andalignment that disclosure standards; update existing digital systems to collect GHG data. Accordingly, the Group
has already implemented the following methodologicalchanges that affect the data for the 2021-2023 period,
while further actions will be developed during 2024:• for the calculation of Scope 2 and Scope 3 – category
3D emissions (generation of purchased electricity thatis sold to end users), the country emission factors of

the power system (for both location-based and market-based models) have been updated. Enel now relies
on data from national authorities for its core countries(Italy, Spain, Chile, Colombia, Peru, Brazil and the UnitedStates), while continuing to use data from third-party
providers for all other countries;• for the calculation of Scope 2 emissions relating toelectricity consumption in power distribution business,it has been decided to consider these emissions as partof the calculation of scope 2 emissions from technicalgrid losses;• for the calculation of Scope 3 – category 1 emissions(purchase of goods and services), primary data andmethod calculation on specific works have been updated;• for the calculation of Scope 3 – category 11 emissions(use of sold products), Enel updated the methodology
to align the calorific value considered for the natural gas
volume sold to end customers with the corresponding
IPCC factor.
GHG inventory statement has been verified by DNV GL, oneof the world’s leading certification bodies, with a reasonable level of assurance for Scope 1 and Scope 2 emissions
and a limited level of assurance for Scope 3 emissions
included in the field of application of the inventory. The
audit was conducted according to Standard ISO 14064-3
for the compliance of greenhouse gas (GHG) inventories
with the WBCSD/WRI Corporate Accounting and Reporting Standard (GHG Protocol).

For more details concerning Enel’s carbon
footprint, please refer to the 2023 GHG inventory.

Zero emissions ambition and just transition

119Greenhouse gas emissions trends in 2023
GREENHOUSE))
GREENHOUSE GASGAS EMISSIONSEMISSIONS TRENDS
TRENDS IN
IN 20232023 (MtCO(MtCO2eq
2eq

132.9

Scope 3
Scope 2(1)
Scope 1

-4.8

127.9

-1.0

-2.4
-5.6

75.8

4.0

-1.7

-3.8

94.3

71.0

-0.2

-0.1
3.8

53.1

-5.4

-13.9

56.5

-0.5
0.8

3.3

53.1
34.5

2022
(2022 report)

Methodologicalchanges

2022(2023 report)(2)2

12023 progress(vs 2022)

Perimeterchanges

Thermoelectric
Efficiency in
Production
Scope 2 sources3

Supplychain

45Energy purchased Gas sales tofor saleend customer

6

7

Minor directsources

2023

8

1

Methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions“.

2

Disposal of thermoelectric and renewable assets in Russia and power distribution companies in Latin America in 2022.

3

Reduction of thermoelectric production (coal and CCGT) in Italy, Iberia and Latin America (also influenced by the disposalof thermoelectric assets in Argentina in 2023).

4

Reduction of electricity consumption in proprietary assets and reduction of technical losses in power grids operated byEnel in some countries.

5

Reduction of ordered expenses, higher weight of purchase of materials with a lower carbon footprint and reduction of
the ratio between emissions and ordered expenses.

6

Reduction of the gap between electricity sales to end customers and own production in countries in which the Group has
an integrated position and improvement of the national emission factors in some of these countries.

7

Reduction of the gas volume sold to end customers.

8

Increase of some direct emissions sources, mainly those related to auxiliary services (electro generators) in power grids.

(1) Scope 2 figures refer to the location based model.
(2) 2022 baseline restated for the elaboration of the 2023 Sustainability Report.

In 2023, total absolute direct and indirect (Scope 1, 2,
and 3) emissions totaled 94,321,654 tCO2eq, reaching
the lowest rate ever and breaching the increasing trend
experienced in 2021 and 2022 following the global energy
crisis. Specifically, total emissions have been reduced by
26.3% compared to 2022(8).
This was mainly due to an overall improvement in the main
operational performance metrics (also influenced by thevarious M&A transactions in 2022 and 2023), which contributed to reduce direct and indirect emissions along theentire value chain, by:• reducing capacity and thermal power generation (also•••influenced by the disposal of thermal power assets in
Russia and Chile in 2022 and in Argentina in 2023) andincreasing capacity and renewable power generation;
reducing the gap between electricity sales in the retailmarket and own production in certain countries;
reducing natural gas sales in the retail market, influenced
also by the sale of assets in Romania (although with a limited impact due to its completion in October 2023);
reducing ordered expenditure in 2023 and improving
the ratio of GHG emissions to supply chain expenses.

(8) 2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

120

Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Moreover, the digitalization and automation of electricity
grids have contributed to reduce grid losses and enable
the development of renewable sources, playing a key role

4

Performance 2023

5

Appendixin the Group’s decarbonization performance, as well as in
the decarbonization of the energy systems in which it operates.

OPERATIONALOPERATIONAL METRICS
METRICS WITH
WITH THETHE HIGHEST
HIGHEST INFLUENCEINFLUENCEON
ABSOLUTEGHG
EMISSIONS(SCOPEON ABSOLUTE GHG EMISSIONS (SCOPE 1,
1, 2,
2, 3)
3)

Geothermal & biomass
Solar
Wind
Hydro

Oil&GasCCGT
Coal

RENEWABLE
CAPACITY (GW)(1)

53.6

+4%

RENEWABLE
PRODUCTION (TWh)(1)

55.5

+13%

0.9

0.9

112.4

8.5

10.4

6.1

2022

14.7
45.3

43.3

28.3

28.4

2023

127.0
6.0

11.3

15.9

15.8

THERMOELECTRIC
CAPACITY (GW)(1)

51.7

61.0

2022

2023

ELECTRICITY SALES VS OWN GENERATION IN
COUNTRIES(2) WITH INTEGRATED POSITION (TWh)

2022

27.7

88.8
22.6

7.2

-38%

14.7
55.5

6.0
13.9

12.0

8.0

54.4

36.7

6.6

4.6

19.7

10.8

2022

2023

2022

2023

SALES OF NATURAL GAS IN
RETAIL MARKET (BCM)

GHG EMISSION RATIOOVER ORDER EXPENSES IN
SUPPLY CHAIN (tCO2eq/€mil)

2023
-7%

-19%

133

124

188

177

Electricity
generation

Electricity
generation

321

Electricity
sales

-19%

THERMOELECTRIC
PRODUCTION (TWh)(1)

301

10.2

Electricity
sales

2022

-24%

8.3
2023

903

2022

684
2023

Gap between electricity sales and own generation, relevant for Scope
3 (category 3D) calculation(1)

Consolidated capacity and production. They also include operational data from assets in operation in 2022 and 2023 until their disposal date. In addition,
Enel produced 24.9 TWh from nuclear in 2023 (with respect to 26.6 TWh in 2022).
(2) Italiy, Spain, Brazil, Chile, Colombia, Argentina, Peru and Romania (until its disposal).

Zero emissions ambition and just transition

121

ENEL’S ABSOLUTE EMISSIONS (SCOPE 1-2-3)

Absolute indirect GHG
Scope 2 locationbased emissions(MtCO2eq)(2)Absolute direct
GHG
Scope 1 emissions(MtCO2eq)2023

2022(1)

Absolute indirect
Scope 3 GHG
emissions(MtCO2eq)

Total Absolute GHG
emissions (locationbased – MtCO2eq)(3)
127.9
94.3

71.0
56.5

53.1
34.5
3.8

3.3

GENERATIONNETWORKSCUSTOMERSOTHERREAL ESTATE
Direct Scope 1
GHG
Emissions(MtCO2eq)

Generationfrom thermal
sources

Other(4)Auxiliary
motors ingrids

SF6 losses ingrids

Company fleet
of vehicles

Offices

52.1

32.7

0.5
Indirect Scope
2 GHG
emissions(MtCO2eq)(locationbased)
Indirect Scope
3 GHG
emissions(MtCO2eq)

Electricity consumed \from the grid
0.7

0.6

Fuels
(upstream)(5)

0.5

0.2

1.0

0.1

0.1

0.01 0.01

Technical losses in the Enel grid
3.1

Electricity consumed
from the grid in offices

2.7

0.03 0.03

Gas
sales tothe endcustomer
20.6

10.3

0.08 0.08

Electricity
purchased
for sale to theend customer
25.7

16.8

6.9

24.0

Supplychain(including
all businessactivities)
14.4

Transport ofother rawmaterials
and waste
in various
business
activities

8.8
0.01 0.01

GHG source considered in SBTi target on Scope 1 GHG emissions Intensity relating to Power Generation.
GHG source considered in the SBTi target on the Scope 1 and 3 emissions Intensity relating to Integrated Power.
GHG source considered in the SBTi target on Absolute Scope 3 GHG emissions relating to Gas Retail.
GHG source considered in SBTi target on Absolute additional GHG emissions Scope 1, 2 and 3.
GHG source excluded from SBTi targets.
(1)
(2)
(3)
(4)

2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.
The value according to the market-based methodology is 5.1 MtCO2eq in 2022 and 4.5 MtCO2eq in 2023.
The value according to the market-based methodology is 129.2 MtCO2eq in 2022 and 95.6 MtCO2eq in 2023.
Other: auxiliary engines in nuclear and renewable installations; losses or leaks of NF3, SF6, HFC and CH4; biogenic CH4 emissions from hydroelectric reservoirs; transport of fuels on ships under its operational control.
(5) Includes extraction and transport of coal, gas and fuel oil related to generation activities; as well as the extraction and transport of gas sold to the end
customer in the retail market.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

SCOPE 1 EMISSIONSTOTAL (tCO2eq)
ACTIVITYDESCRIPTION
OF GHG SOURCENETWORKSREAL ESTATE

2023 – FUGITIVE EMISSIONS (tCO2eq)

2023

2022

%

CO2

CH4

N2O

SF6

HFCS

NF3

NON-BIO
CH4

32,744,581

52,112,888-37.2%

32,624,745

43,02976,807----

Auxiliary engines in nuclear andrenewable power plants

12,835

19,077-32.7%

12,796

14

26

-

-

-

-

-

Transportation of fuels (LNG
and coal) and subproducts(ashes and gravel) on vessels
under own operational control

151,498

148,917

1.7%

149,741

17

1,739

-

-

-

-

-

Fugitive CH4 emissions in gasfired thermal power plants

2,167

6,754

-67.9%

-

-

-

-

-

-

2,167

-

SF6 losses in insulation systemsof power plants

45,31037,743

20.1%

-

-

-

45,310----

Fugitive HFCs emissions inthermoelectric and hydropower
plants, and PV manufacturing
sites

1,427

4,638

-69.2%

-

-

-

-

1,427

-

-

-

Fugitive NF3 emissions inphotovoltaic panels manufacturing-

4 -100.0%

-

-

-

-

-

-

-

Thermoelectric generation
activities, including gas andcoal fired power plants, while
also non CO2 emissions frombiomass

GENERATION

2023 – COMBUSTION (tCO2eq)

BIO
CH4

Biogenic CH4 emissions fromhydroelectric basins

328,093

323,598

1.4%

-

-

-

-

-

-

- 328,093

Auxiliary engines in distribution
assets

1,032,588

224,942359.0%

1,029,180

1,178

2,230

-

-

-

-

-

SF6 losses in insulating systems
for power distribution activities

101,429

105,173

-3.6%

-

-

- 101,429

-

-

-

-

Heating systems and canteens
in offices (diesel and naturalgas), including all properties inall of the Group’s Business Linesand offices

6,177

6,385

-3.3%

6,170

3

4

-

-

-

-

-

Company fleet of vehicles(diesel and gasoline)

80,772

76,5505.5%

78,871

351

1,551

-

-

-

-

-

Fugitive HFC emissions
in offices

3,680

900

309.0%

TOTAL

34,510,557 53,067,569

3,680-34.9% 33,901,503

44,592 82,356 146,739

5,106

-

2,167 328,093

GHG source considered in SBTi target on Scope 1 GHG emissions Intensity relating to Power Generation.
GHG source considered in the SBTi target on the Scope 1 and 3 GHG emissions Intensity relating to Integrated Power.
GHG source considered in SBTi target on absolute additional GHG emissions Scope 1, 2 and 3.
GHG source excluded from SBTi targets.

SCOPE 2 EMISSIONSIn 2023, Scope 1 GHG emissions were 34,510,557 tCO2eq,
power generation, 18% and 29%, respectively), contributaccounting for 36.6% of total GHG emissions and resulting LOCATION-BASEDing to displace power generationMARKET-BASEDfrom fossil fuels.
TOTAL (tCO2eq)
TOTAL (tCO2eq)
in a significant reduction
comparedto2022(35.0%
reducThe
percentageofemissionssubject
to local regulatory
DESCRIPTION(1)ACTIVITY
OF
GHG
SOURCE
2023
2022
%
2023
2022(1)%tion).
systems was 83.0%, broken down as follows:
Electricity
fromthe grid in CO , CH
The share of Scope
1 GHGconsumption
emissions(including
74.1% of total Scope 1 emissions related to power• 656,313
2
4
power plants, including hydro pumped568,045-13.4%
797,733
867,282-8.0%
and N2O) relating storage
to thepower
combustion
of
fuels
for
power
plants in the EU-ETS system in Italy and Spain;
plantsElectricity
from94.9%
thegeneration accounted
forconsumption
more thanof the total• 8.9% of total Scope 1 emissions related to power plants
grid at port terminals in Spain, PV
GENERATION
Scope 1 value. Theseemissions,amountingto 32,744,581
underde-12.1%
Improduction
site in Italy(3Sun) and non6,624
3,975 the green
66.7% tax system
1,433 in Chile (Sistema
1,630
AND OTHER
operational mining site in Italy (SantatCO2eq, were reducedby
37.2%
comparedto2022,
thankspuestos
Verdes).
Barbara)to a 38% reduction in thermal power generation resulting
Other Scope 1 emissions (including those from auxiliary
GHG emissions associated withfrom lower coal-firedand
CCGT
generationin
Italy,
Ibepower
plant services
distribution sites,
fugitive emis2,675,141
3,122,314-14.3% and
3,698,260
4,205,610-12.1%
technical losses from the grid
NETWORKS
ria and Chile and from the sale of thermal power plants insions, vehicle fleet, buildings, and fuel transport in propriconsumption in buildings
27,86534,412-19.0%
25,684-66.0%REAL ESTATE
Russiain 2022 andElectricity
Argentina
in
2023.
In
addition,
power
etary
vessels) amounted
to8,735
1,765,976 tCO
combined,
2eq
and offices
generation from renewables has increased by 13% sinceaccounting for 5.1% of total Scope 1 emissions.
TOTAL FROM ELECTRICITY CONSUMPTION
602,534
694,699-13.3%
807,901
894,596-9.7%
2022(withTECHNICAL
significant
increases
inGRIDhydroelectric and2,675,141
solar
TOTAL FROMLOSSESFROM THE
3,122,314-14.3%
3,698,260
4,205,610-12.1%TOTAL SCOPE 2

3,277,674

3,817,013-14.1%

4,506,161

5,100,206-11.6%

GHG source considered in SBTi target on absolute additional GHG emissions Scope 1, 2 and 3.
(1)2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

Zero emissions ambition and just transition

123

REAL ESTATE

all of the Group’s Business Linesand offices
Company fleet of vehicles(diesel and gasoline)

80,772

76,5505.5%

Fugitive HFC emissions
in offices

3,680

900

309.0%

TOTAL

34,510,557 53,067,569

78,871

351

1,551

-

-

-

3,680

-34.9% 33,901,503

44,592 82,356 146,739

5,106

-

-

-

2,167 328,093

Regarding biomass and biogas, direct emissions of CH4
1 calculation, while the corresponding biogenic CO2 emisGHG source considered in SBTi target on Scope 1 GHG emissions Intensity relating to Power Generation.
andN2O related to combustion for power generation,
sions, amounting to 96,277 tCO2, are reported separately
GHG source considered in the SBTi target on the Scope 1 and 3 GHG emissions Intensity relating to Integrated Power.
amountingto 28,631intCO
in 2023,
are partof theScopein 1,linewith
GHG source considered
SBTi2eqtargeton absoluteadditionalGHG
emissions Scope
2 and
3. the GHG Protocol guidelines.
GHG source excluded from SBTi targets.

SCOPE 2 EMISSIONSACTIVITY

GENERATIONAND OTHER

NETWORKSREAL ESTATEDESCRIPTION
OF GHG SOURCELOCATION-BASED

MARKET-BASEDTOTAL (tCO2eq)

TOTAL (tCO2eq)2023

2022(1)%2023

2022(1)%

Electricity consumption from the grid in
power plants, including hydro pumpedstorage power plants

568,045656,313-13.4%

797,733

867,282-8.0%Electricity consumption from thegrid at port terminals in Spain, PV
production site in Italy (3Sun) and nonoperational mining site in Italy (Santa
Barbara)

6,624

3,975

66.7%

1,433

1,630

-12.1%

2,675,141

3,122,314-14.3%

3,698,260

4,205,610-12.1%

27,86534,412-19.0%

8,735

25,684-66.0%

GHG emissions associated withtechnical losses from the gridElectricity consumption in buildings
and offices

TOTAL FROM ELECTRICITY CONSUMPTION

602,534

694,699-13.3%

807,901

894,596-9.7%

TOTAL FROM TECHNICAL LOSSES FROM THE GRID

2,675,141

3,122,314-14.3%

3,698,260

4,205,610-12.1%TOTAL SCOPE 2

3,277,674

3,817,013-14.1%

4,506,161

5,100,206-11.6%

GHG source considered in SBTi target on absolute additional GHG emissions Scope 1, 2 and 3.
(1)2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

In 2023, Scope 2 GHG emissions amounted to 3,277,674
tCO2eq according to a location-based approach, accounting for 3.5% of total GHG emissions, while being 14.1% lessthan in 2022(9). When considering the market-based model, they instead amount to 4,506,161 tCO2eq.
The two sources related to Scope 2 emissions are lower
than in 2022. Specifically:• Scope 2 emissions from electricity consumed by theGroup decreased by 13.3% as a result of an 8% reductionof electricity consumption in power plants and build-•ings, as well as improved local emission factors in somecountries where the Group operates, reaching 602,534
tCO2eq;Scope 2 emissions from technical grid losses decreased by 14.3%, as consequence of the technicallosses reduction in most countries where electricity is distributed, supported also by the improvementof some local emission factors, reaching a value of
2,675,141 tCO2eq.

(9) 2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

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1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

SCOPE 3 EMISSIONSACTIVITYTOTAL (tCO2eq)

DESCRIPTION
OF GHG SOURCE

2023

2022(1)%

8,815,466

14,411,116-38.8%

1,028,425

1,882,384-45.4%

Category 3A – Upstream emissions ofpurchased natural gas(3)5,890,020

8,419,124-30.0%

Category 3A – Upstream emissions ofpurchased fuel oil and biomass(4)

5,151

5,934

-13.2%

Category 3D – Generation of electricity
purchased from third parties and soldto end customers(1)23,995,410

25,673,107

-6.5%

9,352

9,842

-5.0%

16,789,600

20,633,606-18.6%

56,533,423

71,035,113-20.4%

UPSTREAM SCOPE 3 EMISSIONS
Category 1 – Purchase of goods
and services

ALL

Category 3 – Fuels and energy-related
activities not included in Scope 1 and 2:
Category 3A – Upstream emissions ofpurchased coal(2)GENERATIONAND OTHER

MARKET

Category 4 – Upstream transport anddistribution

ALL

DOWNSTREAM SCOPE 3 EMISSIONSMARKET

Category 11 - Use of sold products:
Emissions from the use of gas sold by
end customers(1)Total

GHG source considered in the SBTi target on the Scope 1 and 3 GHG emissions Intensity relating to Integrated Power.
GHG source considered in the SBTi target on Absolute Scope 3 GHG emissions relating to Gas Retail.
GHG source considered in SBTi target on absolute additional GHG emissions Scope 1, 2 and 3.
GHG source excluded from SBTi targets.
(1)
(2)
(3)
(4)

2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.
Includes the activities of coal mining and transport by ship by third parties, and also the transport of ash by ship by third parties.
Includes the extraction and transportation of natural gas for the electricity generation and also for sale to the end customer.
Includes road transport activities of purchased fuel oil and biomass.

In 2023, Scope 3 GHG emissions amounted to 56,533,423
tCO2eq, accounting for 59.9% of total GHG emissions andresulting in a significant reduction of 20.4% compared to2022(10).
There has been a significant reduction in all Scope 3
sources, in particular:• indirect GHG emissions from the supply chain (category 1) amounted to 8,815,466 tCO2eq, 38.8% lower thanin 2022(9), due to a reduction in the absolute amount ofspending on orders, the purchase of materials with alower carbon footprint, and a 23% reduction in the ratioof emissions per unit of spending (from 903 tCO2eq/€milin 2022 to 684 tCO2eq/€mil in 2023);• indirect GHG emissions from upstream coal (category 3A), including mining and transport by sea (including ash), amounted to 1,028,425 tCO2eq, a decrease of
45.4% following a reduction of more than 45% in coalfired power generation (from 19.7 TWh in 2022 to 10.8
TWh in 2023);• Indirect GHG emissions from upstream gas (category
3A), which include the extraction and transportation••of natural gas consumed in gas-fired power plants
and natural gas sold on the retail market, amounted
to 5,890,020 tCO2eq, a decrease of 30.0% compared to20229 which was affected by a 35% reduction in gasfired electricity generation in thermoelectric plants due
to lower production in Italy and Iberia and the sale ofthermal power plants in Russia and Argentina, as well
as a reduction in gas retail sales (the amounts sold decreased by 19% from 10.2 bcm in 2022 to 8.3 bcm in2023);
indirect GHG emissions from upstream of fuel oil,biomass, and other (category 3A) amounted to 5,151
tCO2eq, 13.2% less than in 2022. It should be noted thatno biomass was purchased and transported to Italy
during the year 2023. All biomass consumed was partof the residual stock from 2022;
indirect greenhouse gas emissions from third-party
generation of electricity purchased and sold to end customers (category 3D) amounted to 23,995,410 tCO2eq.
They decreased by 6.5% compared to 2022(9), due primarily to a 7% reduction in the gap between energy(10) 2022 figures were restated according to the methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

Zero emissions ambition and just transition

125

•

sales to end customers (including by the Group’s distribution companies operating in regulated markets
in Latin America) and the Group’s own production
in countries where it has an integrated position (Italy,
Spain, Brazil, Chile, Colombia, Argentina and Peru) and,to a lesser extent, to improved local emission factors insome of these countries;
indirect greenhouse gas emissions from products
sold (category 11), related to the use of natural gas
sold to end customers in the retail market, amounted
to 16,789,600 tCO2eq in 2023. They decreased by 18.6%
from 2022(11) due to a 19% reduction in natural gas volumes sold to end customers. The sale of assets and activities in Romania contributed to this reduction, eventhough with a limited impact since the sale was completed in October 2023.

Non-biogenic methane emissions (CH4)
Enel monitors non-biogenic methane emissions throughout its value chain, including both direct and indirectemissions.
There are two sources of direct methane emissions(Scope 1):• methane emissions from the combustion of fuels,
mainly in power plants for electricity generation, and to•a lesser extent in auxiliary power plant services, grids,
and building and fleet management. These emissions
are calculated based on fuel consumption by applying
the corresponding fuel-specific IPCC emission factor.
This source amounted to 44,592 tCO2eq, accounting for
0.13% of Scope 1 emissions in 2023;
methane emissions from leaks in gas-fired power plants.
They are monitored and calculated according to internal procedures that follow the leak detection and repair(LDAR) method. This source amounted to 2,167 tCO2eq in
2023, accounting for 0.01% of Scope 1 emissions in 2023.

As for indirect methane emissions (Scope 3), they relate
mainly to fuel combustion and losses in the coal mining
process and in the extraction and transportation of fossil
fuels from the Group’s suppliers. They are calculated using reliable secondary data for each specific phase (fromthe extraction phase to gas distribution) in line with IPCC
factors, and are part of the previously disclosed data on
Scope 3 emissions from upstream fuels.
All direct and indirect emissions from methane leaks andfuel combustion in the Group’s power plants and all indirect emissions related to the natural gas retail businesswill be fully mitigated by 2040, when the Group completes the divestment of all its thermoelectric capacityand gas retail business.

Intensity metrics
SCOPE
RELATING
SCOPE 11 GHG
GHG EMISSIONSEMISSIONS INTENSITYINTESITY RELATINGTO
POWER
GENERATION
(gCO
/kWh)
TO POWER GENERATION (gCO2eq/kWh)2eq-30.1%

229
160

2023

2022

This metric considers Scope 1 emissions Intensity relating to Power Generation, including CO2, CH4 and N2O andexcludes 1purehydropower
generation,
SCOPE
ANDpumped
3 GHGstorage
EMISSIONSINTENSITY
measured
in
grams
of
CO
per
kWh.
2eq
RELATING TO INTEGRATEDPOWER gCO /kWh)2eq

Worldwide greenhouse gas (GHG) emissions continued
to increase in 2023, largely due to the economic reboundand a further increase in fossil fuel consumption, with theenergy crisis and high natural gas and liquefied natural gas
prices triggering an increased use of unabated coal as acheaper but more emissive fuel.
The Group, however, managed to reduce its direct andindirect GHG emissions across its entire value chain by
26.3% overall, compared to the previous year. In addition,
the Group, it also reduced its Scope 1 GHG emissions Intensity relating to Power Generation by more than 30.1%,
from 229 gCO2eq/kWh in 2022 down to 160 gCO2eq/kWh
in 2023. Such reduction is the result of a 12.9% increasein consolidated production from renewable sources anda 37.5% reduction in consolidated production from thermoelectric sources compared to 2022, as a consequenceof the Group’s strategy of shifting its energy mix portfolio
towards renewables and to advancing in its decarbonization process.

-20.0%(11) The 2022 values were recalculated based on methodological changes set out in the paragraph “Methodology for calculating greenhouse gas emissions”.

126

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210

168

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Nevertheless, the war in Ukraine and the consequent restrictions in EU gas imports from Russia, which caused adecrease in gas availability accompanied by a surge in thewholesale prices of electricity and gas with severe effects
for households and businesses, led the EU governments
to implement a range of policy responses to mitigate theimpact of higher costs and ensure the energy system’s
stability.
In particular, the Italian government responded with a national natural gas consumption containment plan that included, among its measures, the maximization of electricity generation in the thermoelectric sector using fuels other than gas. This was achieved through Decree 14/2022,
which required the country’s national transmission system
operator (TSO) to define a program aimed at maximizing
power generation from coal-fired power plants until theend of September 2023. Consequently, the TSO identified
Enel’s coal-fired power plants as essential and required
them to maximize their production.

As a consequence, the Group’s sustainability-linked instruments which set the Scope 1 GHG emissions Intensity
target relating to Power Generation of 148 gCO2eq/kWh
for 2023 will be subject to an increase of the relevant margin and Enel will comply with its obligations in accordancewith the terms and conditions of the legal documentationof such Sustainability-Linked transactions.
Despite these unprecedented circumstances, theGroup’s emissions intensity in 2023 remained in line withthe 1.5 °C pathway. In fact, the sector’s decarbonization
approach of the SBTi established a maximum thresholdof 246 gCO2eq/kWh for Enel for 2023, well above the actual figure.

Performance 2023

5

Appendix

Ultimately,
decarbonization
remains
SCOPE 1Enelʹs
GHGcommitment
EMISSIONStoINTESITYRELATING
confirmedfortheshort,
medium
and
long
term,
as
envisTO POWER GENERATION (gCO2eq/kWh)aged in the new 2024-2026 Strategic Plan, which establishes a new short-term target for 2026 of 125 gCO2eq/kWh.
This new target has been included-30.1% in the Sustainability Linked
Financing Framework updated in January 2024 and linked to
the first launch of sustainability-linked bonds in 2024, confirming Enel’s commitment to the energy transition as well as
contributing to the environmental and financial sustainability229
of the Group’s development
strategy. Furthermore, the tar160 1 GHG emissions
get for 2030 to reduce 80% of the Scope
Intensity relating to Power Generation with respect to the2017 baseline and the final target for 2040 aimed at reducing
2022
2023
100% of these emissions without relying on any type of offset
or carbon removal mechanism remain confirmed as well.

SCOPE
SCOPE 11 AND
AND 3
3 GHG
GHG EMISSIONSEMISSIONS INTENSITYINTENSITY
RELATINGTOINTEGRATED
POWER
/kWh)
RELATING TO INTEGRATED POWER (gCO
gCO 2eq/kWh)2eq

On the other hand, in Spain, the government authorization
for the closure of As Pontes coal power plant requested by
Enel’s subsidiary Endesa in December 2019 for June 2021
was postponed until the end of 2023 as the power plant
was identified as essential by the transmission system operator.
As a consequence of the unprecedented crisis that the European energy system faced in 2022 and 2023, the Group's
emission reduction carried out in 2023 was not enough tomeet the Scope 1 GHG emissions Intensity target relating toPower Generation set for 2023 and announced at the Capital Markets Day held in November 2020 for the launch of
the 2021-2023 Strategic Plan. Due to the energy crisis, theintensity figure stood slightly higher than the target of 148
gCO2eq/kWh. In the absence of the above-mentioned effect, Enel would have been able to achieve a level of emission intensity well below the target of 148 gCO2eq/kWh.

4-20.0%

210

2022(1)
(1)

168

2023

Restated according to methodological changes described in the paragraph “Methodology for calculating greenhouse gas emissions”.

This metric is calculated by combining the Group’s direct GHG
emissions (Scope 1, including CO2, CH4 and N2O) from power
generation and the Group’s indirect GHG emissions (Scope3) from generation of electricity purchased and sold to end
customers, divided by electricity generation and purchases(excluding pure pumped storaged hydropower generation).
In 2023, this value reached 168 gCO2eq/kWh, reduced by
20.0% compared to 2022 following a:• reduction of 37.2% in absolute Scope 1 emissions relating to Power Generation as a result of a 37.5% reductionin thermal power generation;• a reduction of 6.5% in absolute Scope 3 emissions fromenergy purchased from third parties and sold to end
customers, due to an overall 7% reduction in the gap
between energy sales to end customers (including by
the Group’s distribution companies operating in regulated markets in Latin America) and the Group’s own
production in countries where it has an integrated position (Italy, Spain, Brazil, Chile, Colombia, Argentina andPeru) and, to a lesser extent, to improved local emission
factors in some of these countries.

Zero emissions ambition and just transition

127

Financial, operational and environmental metrics
connected with climate change
Financial metrics connected with climate change
The main metrics and financial goals regarding the risks
and opportunities connected with climate change, as wellas the operational metrics along the entire value chain andthe environmental ones, are reported below.

Financial metrics

UM

2023

2022

2023-2022%

billions of euros

17.9

13.9

4.0

29.4

billions of euros

12.8

13.3

-0.5

-3.8

% of total Capex

94.6

92.1

2.5

-

billions of euros

2.9

6.5

-3.6

-

% of total revenues

3.0

4.6

-1.6

-

billions of euros

14.0

24.1

-10.1

-72.1

% of total revenues

14.7

17.2

-2.5

-

billions of euros

1.5

1.6

-0.1

-6.7

% of total revenues

1.5

1.1

0.4

-

%

64

63

1.0

-

(€/ton)

71

86

-15.0

-17.4

Ratio of total absolute emissions (Scope 1, 2 and 3)
to total revenue (location based)

tCO2eq/€mil

987

910

77

7.8

Ratio of total absolute emissions (Scope 1, 2 and 3)
to total revenue (market based)

tCO2eq/€mil

1,000

919

81

8.1

Ordinary EBITDA for low-carbon products, services and technologies(1)

Capex for low-carbon products, services and technologies

Revenues from coal plants

Revenues from thermal generation

Revenues from nuclear plants
Debt ratio with sustainability criteria
Reference price of CO2(1) Ordinary EBITDA for low-carbon products, services and technologies represents the ordinary gross operating margin of the low-carbon products, services
and technologies included in the following business lines: Enel Green Power, Enel Grids, Enel X and End-user Markets (excluding gas).

In 2023, Enel’s ordinary EBITDA associated with low-carbon technologies, services and solutions was 17,982 million euros, an increase of 29.4% compared to 2022. Capex
dedicated to low-carbon technologies, services and solutions is in line with 2022 values, reaching 12.8 billion euros,
accounting for 94.6% of total Capex.
The percentage incidence of revenues from coal-fired
plants is down, mainly attributable to lower quantities
generated from thermoelectric sources, partly as a resultof higher renewable production, especially from hydroelectric sources. Specifically, in 2023, revenues related tocoal-fired plants correspond to 3.0% of the Group’s total
revenues.
Enel’s strategy of promoting a sustainable financial model
has contributed to reaching 64% of the debt related to thesustainability goals.

128

Sustainability Report 2023

With regard to the effects of climate change issues, theGroup considers them an implicit element in the application of the methodologies and models used to makeestimates in the valuation and/or measurement of certain
accounting items. Furthermore, the Group has also taken
into account the impacts of climate change in the significant judgments made by management. In this regard, themain items included in the Integrated Annual Report for
the year ended December 31, 2023 affected by the use ofManagement estimates and judgments concern the impairment of non-financial assets, bonds related to the energy transition, including those for decommissioning andthe site restoration of certain power generation plants.

For further details, please refer to section 6.
Climate Change Disclosures in the2023 Integrated Annual Report.

1

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to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Additional operational and environmental metrics
connected with climate change
The following table shows other operational and environmental metrics related to climate change, in addition to
the greenhouse gas emissions and operational metrics(generation, distribution and customers) previously described in the paragraph “Enel’s performance in tacklingclimate change”.
UM

2023

2022

2023-2022

%

%

42.0

42.8

-0.8

-

Mtoe

19.3

26.5

-7.2

-27.2

Public charging points(2)no.

24,281

22,112

2,169

9.8%

Demand response capacity

MW

9,588

8,476

1,112

13.1%

Storage

MW

1,730

760

970

-

l/kWheq

0.20

0.23

-0.03

-13.0

Water withdrawals in water-stressed areas(3)

%

23.3

19.3

4.0

-

Generation with water withdrawal in water stressed areas

%

11.4

13.3

1.9

-

Generation efficiency
Average efficiency of thermal plants(1)Total direct fuel consumption
Electrification, energy efficiency and new services for customers

Environmental metrics
Total specific withdrawals of fresh water(3)(1)

The calculation does not consider Italian O&G plants being decommissioned or of marginal impact. Average efficiency is calculated on the basis of the plant
fleet and is weighted by generation.
(2) It should be noted that the figures shown, if they also included the charging points of companies operated in joint ventures, would be 25,337 as of December 31, 2023, and 22,617 as of December 31, 2022.
(3) As of last year, Enel has strengthened its commitment to preserving water resources, aiming to reduce freshwater withdrawal by 65% from 2017. By focusing
on vulnerable water resources, Enel underlines its dedication to environmental protection and the common good, in line with EU sustainability standards(ESRS-E3 standard).

Carbon credits purchase in voluntary markets
During 2023, carbon credits in the voluntary market totaling 82,256 tCO2eq were purchased and cancelled to meet
specific customer requests. The purchase involved VERs
Type of credit

certified by Verra generated between 2015 and 2021. For
more details, please refer to the following table:

VintageTechnology

Certification

Total (t)

VER

2016

REDD+

Verra

1,000

VER

2015-2019

RES

Verra

27,256

VER

2021

Methane Recovery

Verra

54,000

These volumes have not been discounted in the calculation of direct and indirect emissions disclosed in the Sustainability Report and are not part of the Group’s Net Zerocommitment, since this commitment does not envisage
the use of credits linked to projects that avoid greenhousegas emissions.

In the future, however, the Group may purchase, directly and/or indirectly, carbon removal credits purely for the
purpose of neutralizing residual emissions (with a volumeof less than 2.5 MtCO2eq) while meeting the 1.5 ºC target as
defined by SBTi. No such credits were purchased in 2023.

Financial and operational targets
The main financial and operational targets that will contribute to reducing the Group’s direct and indirect emissions along the entire value chain have been reported in

the paragraph “The strategy for tackling climate change”
in this chapter.

Zero emissions ambition and just transition

129

ROADMAP TOWARDS NATURAL
CAPITAL CONSERVATIONDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

MATERIAL TOPICS:• Preservation of

biodiversity and ecosystems

NATURE• Water resources management• Air, water and soil quality• Waste• Governance and advocacy
for nature and climate

Enel is pursuing its path of sustainable development by promoting natural capital conservation and fighting against climatechange. The Group sets specific targets for reducing impacts, restoring habitats, and sharing the opportunities and benefitsof ecosystem services with the communities Enel interacts with.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETS

MAIN
SDGs

PRESERVATION OF BIODIVERSITY AND ECOSYSTEMSExtra Checking on Site (ECoS) on
environmental issues

89 ECoS carried out onenvironmental issues

50 ECoS carried out onenvironmental issues in 2026

14 15

BIODIVERSITY PROTECTION

Preservation of biodiversity• Group guidelines establishedto verify the No Net Losstarget for new projects
and applications on the
Generation and Grids pilot
projects;• creation of a catalog ofnature-based solutions forurban biodiversity projects
and application.

• No Net Loss
– implementation on selected
projects in high biodiversity
areas starting from 2025;– implementation for new
infrastructures by 2030;• No Net Deforestation by 2030;• No Go in areas designatedas UNESCO World Heritage
Natural Sites(1).

Awareness of the valueof biodiversity and new
partnerships:• a biodiversity awarenesscampaign targeted at allinternal staff was launched
in December 2023 andreinforced in 2024;• partnerships wereconsolidated globally, while
also maintaining oversight at
the local level.

Awareness of environmental
issues and natural capitalconservation: launch of anannual awareness campaign on
environmental issues/natural
capital conservation basedon the results of the double
materiality analysis(2).

14 15

14 15

(1) Commitment related to new generation infrastructure.
(2) Target has been redefined as partnerships have been established and the focus is on spreading awareness of environmental issues and natural capitalconservation.

Goals

New

130

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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2Enel’s commitment
to sustainable development

ACTIVITIES

Preservation of biodiversity

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

2023
RESULTS2024-2026
TARGETS

MAIN
SDGs

Nature risk/opportunity
analysis:internal application of TNFD
guidelines to assess impacts,
risks and opportunities: anassessment of the business andtechnology impact, risks andopportunities was conductedbased on TNFD guidelines.

Analysis and managementof Impacts, Risks andOpportunities relating toenvironmental issues:consolidation of theassessment of nature impact,risks and opportunities
following the materiality
analysis and updates to therespective action plan in 2026(3).

14 15Nature footprint - Assessment
metrics and restoration plan:
consolidation of the Group’s
Biodiversity KPIs.

Appendix

14 15

WATER RESOURCES MANAGEMENT
Reduction of specific fresh water
withdrawal-53% vs 2017-58% in 2026 compared to 2017-65% in 2030 compared to 2017612

AIR QUALITY
Reduction of specific SO2 emissions-75% vs 2017-81% in 2026 compared to 2017-85% in 2030 compared to 201712

Reduction of specific NOx emissions-53% vs 2017-51% in 2026 compared to 2017-70% in 2030 compared to 201712

Reduction of specific dust emissions-54% vs 2017-54% in 2026 compared to 2017-60% in 2030 compared to 201712

WASTE MANAGEMENT
Reduction in the weight of total waste
generated-51% vs 2017-55% in 2030 compared to 201712

Promoting and disseminating goodpractices on waste management andend-of-life

A program to raise awarenessof waste management andshare best practices on end-oflife was implemented, involving
both internal staff and key
contractors.

Target is considered outdated
as widespread awareness has
been gained on the issue

12“ZERO Plastic Project”

Reduction in single-use plastic(office scope) when comparedto the pandemic period in themain countries of operation,
especially Italy and Spain.

Target is considered outdated
as it has been achieved in themain countries of operation

12

Reduction in the use of single-use
plastic in Enel Group offices (officescope)• Enel sites in Italy(4): -85%

12

• Enel sites in Spain(4): -85%

12(3) Target has been redefined, integrating metrics and the recovery plan into the analysis of impacts, risks and opportunities.
(4) Compared to the volume of single-use plastic in 2018. Reduction calculated based on office attendance. Does not include offices with fewer than 20 employees.

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ROADMAP TOWARDS
NATURAL CAPITALCONSERVATION
183 no.

8,343 ha0.20 l/kWh

PROJECTS FOR THE PROTECTION
OF SPECIES AND NATURAL
HABITATS IN OPERATIONAL SITESAREA COVERED BY
NATURAL HABITATRESTORATION PROJECTSTOTAL SPECIFICFRESHWATER WITHDRAWAL

200 in 2022

-8.5%

9,452 ha in 2022

0.23 l/kWh in 2022

-13.0%

0.09 g/kWh0.26 g/kWh0.006 g/kWh

SPECIFIC
SO2 EMISSIONSSPECIFICNOX EMISSIONSSPECIFIC
DUST EMISSIONS+28.6%

0.07 g/kWh in 2022

3.3 MtWASTE PRODUCED BY
OPERATING AND
MAINTENANCE ACTIVITIES
3.4 Mt in 2022

132

-11.7%-2.9%

Sustainability Report 2023

0.32 g/kWh in 2022

-18.8%

0.005 g/kWh in 2022

+20.0%

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3

Stakeholder engagement andmateriality analysis

Enel upholds its commitment to sustainable developmentby actively promoting the protection of natural capital andthe fight against climate change, through the definition of
specific targets to reduce impacts, restore habitats andshare opportunities and benefits of ecosystem services
with the communities with which it interacts, in line with
the Environmental Policy(1) and Biodiversity Policy(2).
In 2023, plans set out in the Kunming-Montreal Global
Biodiversity Framework (December 2022) at international
level were launched, while at European level, regulations
are being defined in order to slow the degradation of
ecosystems, with the introduction of binding targets for
Member States.
In particular, at European level, the main lines of action include:• Nature Restoration Law. The regulation establishes
an objective of implementing area-based restoration
measures covering at least 20% of the EU’s land and sea
area by 2030, and all ecosystems in need of restoration
by 2050, requiring Member States to formulate specificnational plans. The proposal also includes specific objectives for urban ecosystems, agricultural and forest
ecosystems. Enel has actively supported the Commission’s activities, promoting synergies between the restoration of degraded areas and the development of
renewable energies.
• Air quality. In 2023, the European Parliament andCouncil discussed the text of the proposal to revise
air quality directives, confirming the introduction ofa “zero pollution” objective for 2050, the alignment ofEuropean Union air quality standards with WHO (World
Health Organization) recommendations, public awareness-raising with respect to atmospheric pollution,
the establishment of an air quality index and the introduction of a new right for individuals who suffer fromhealth damage to claim and obtain compensation. Enel
actively participates in the review process by promoting
the adoption of zero-emission technologies that generate benefits both globally, in terms of GHG reduction,and locally, in terms of reducing atmospheric pollution.
• Industrial emissions. As regards industrial pollutionof air, water and soil, an institutional agreement wasreached in 2023 on the text of the Industrial Emissions
Directive, which establishes new rules and extends
their scope to encompass an even greater number of

4

Performance 2023

5

Appendix

sectors – including large-scale intensive farming – aswell as requiring the competent authorities to impose
more stringent limits. The new rules are also aimed atincreasing transparency and public participation in theauthorization process. Enel supported the review process, particularly as pertains to large combustion plants,
in line with the commitment it has already adopted fora number of years to progressively adapt power plants
powered by fossil fuels, thanks to the introduction oftechnologies with low emissions of polluting substances. Furthermore, Enel actively supports the development of new technologies, such as electrification basedon renewable energy, to support other sectors and usesof energy, such as the transport sector or heating andcooling of buildings.
• Soil strategy. As part of the European Union Soil Strategy for 2030, in 2023 the European Commission published a proposal for the first European law on soil monitoring. This directive aims to restore soil and ensure its
sustainable use by establishing a robust and coherent
monitoring framework for all Member States. In thiscontext, Enel is supporting the proposed strategy, by
promoting a circular approach to land management,in particular through the reuse and redevelopment ofbrownfield sites, as well as the repowering and lifetime
extension of wind farms, in order to limit the use of soil.
Furthermore, Enel is actively pursuing the reuse of areas within its industrial area. There are several projects
on a global scale for the redevelopment of abandoned
industrial sites of different sizes and in different contexts, which become a development opportunity for thesurrounding area and for the country system.
• Euro 7 standard for vehicles. In 2023, an institutional
agreement was reached on the revision of the Euro 7
standards, which establishes limits for pollutant emissions in internal combustion vehicles. The new standards will reduce pollutants for heavy vehicles. In thiscontext, Enel supports the adoption of zero-emission
mobility technologies, such as electric mobility.
Furthermore, Enel supports this path through its participation with Eurelectric in the Zero Pollution Stakeholder
Platform (“Towards a Zero Pollution Ambition for Air, Water and Soil – Building a Healthier Planet for HealthierPeople”(3)).

(1)

Since 1996 Enel has adopted a Group Environmental Policy, which was updated in 2018, 2022 and 2024. The Enel Group’s Environmental Policy covers theentire value chain, applying to: (i) all the production phases of every product and service, including distribution and logistics phases, as well as the management of related waste; (ii) each site and building; (iii) all relationships with external stakeholders; (iv) all mergers and acquisitions; in addition, it is shared with(v) key business partners (including partners related to non-managed operations, joint ventures, outsourcing or third-party producers); (vi) every supplier,including service and contractor suppliers; (vii) due diligence and Merger&Acquisition processes.
(2) In 2015, Enel published the Group’s Biodiversity Policy, which was updated in 2023 following the release of the Kunming-Montreal Global Biodiversity Framework.
(3) COM (2021) 400 final: Communication Pathway to a Healthy Planet for All – EU Action Plan: “Towards Zero Pollution for Air, Water and Soil”.

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Partnership with associations and organizations forsustainable development
2-28
The fight against climate change and against the consequences it is having on the planet’s biodiversity and ecosystems has increasingly become a priority, including at
a social level, for governments, institutions, businesses
and citizens. The latest COP 15 on biodiversity in Montreal, which led to the definition of the Global Biodiversity Framework, and the most recent global summits, suchas the UN General Assembly in New York, COP 28 and theannual meeting of the World Economic Forum in Davos,
have strongly contributed to increase the multi-stakeholder debate and renew awareness of issues related tonature and biodiversity, which can no longer be viewed inisolation from the current climate emergency. In this context, new coalitions and initiatives have arisen in recent
years, aimed at encouraging multilateral dialogue and increasing political ambition for nature. Enel, which for years
has been committed to partnering with the sector’s main
global stakeholders, also continued its active commitment
into 2023 with actions such as:• participating in the working group “Roadmaps to Nature Positive” promoted by the World Business Council
for Sustainable Development (WBCSD), in which Enel
actively participated as regards the energy sector. The
roadmap, launched during the week of the UN General
Assembly in New York in September 2023, is intended
as a guide to help companies define ambitious andcredible strategies and actions towards the nature positive objective of the Global Biodiversity Framework;• the partnership with the Taskforce on Nature-related Fi-

134

Sustainability Report 2023

•

•

•

nancial Disclosures (TNFD) launched in 2021 within the
Forum, and continued during 2023 with Enel’s participation in the TNFD Pilot Program, which tested the new
TNFD Framework and contributed to the publication of
the TNFD recommendations to assist businesses andfinancial institutions in assessing and reporting on risks
and opportunities linked to nature and biodiversity;
joining the group of TNFD Early Adopters, in January2024 and Enel’s commitment to publish the first TNFDaligned disclosure for the 2025 financial year, in linewith the progressive strengthening of disclosure tomeet TNFD recommendations. Nonetheless, the current disclosure already takes into account the majorityof the TNFD recommendations;the partnership with Business for Nature, launched in2020 with the signing of the call to action “Nature isEveryone’s Business”, has continued over the years tocall on governments to adopt ambitious environmental
policies to reverse the loss of nature in this decade. In
2023 Enel also contributed to the definition of the newBusiness for Nature strategy, participating in the “Business for Nature’s Business Action Strategy” workshop;
participation as a member of the Coalition Linking Energy And Nature for action (CLEANaction), promoted
by WWF, which involves electrical companies and sector associations with the objective of assessing andmitigating the impacts and potential risks that new renewable energy generation projects could have on biodiversity and nature.

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

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5

Appendix

Governance model for nature
2-9
Enel’s organizational and corporate governance model
ensures that sustainability issues are appropriately taken
into consideration in all relevant Company decision-making processes, by defining specific tasks and responsibilities for the main corporate governance bodies.
The Board of Directors plays a central role in corporate
governance, as do the committees it has established andwhich have the power to investigate, propose and advise,in order to ensure an adequate internal division of its functions, as well as a related party transactions committee.
During 2023, the Corporate Governance and Sustainability Committee dealt with nature-related issues, reflectedin the strategies and related implementation methods in 4of the 7 meetings held, in particular during the review of:(i) the Sustainability Report for the 2022 financial year, coinciding with the Consolidated Non-Financial Statement
pursuant to Legislative Decree No. 254/2016 for the same

year; (ii) the materiality analysis and the guidelines of the
Sustainability Plan 2024-2026, including environmental
targets; (iii) updates on the main activities carried out in
2023 by the Enel Group in the field of sustainability, on thestatus of implementation of the Sustainability Plan 20232025 and regarding Enel’s inclusion in the main sustainability indices and ratings.

For more information on the tasks andactivities carried out by the corporate bodies, pleaserefer to the Enel Report on Corporate Governance andOwnership Structure, available on the www.enel.com
website, governance section, as well as the chapters“Sound governance” and “Zero emissions ambition andjust transition” in this document.

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ENEL GROUPENVIRONMENTAL POLICY
Enel is committed to protect the environment and natural resources, tackle climate change, and contribute towards
sustainable economic development as integral part of Enel strategic planning, development, and operation. These are
key factors in consolidating the Company’s leading position in the energy markets.
Such commitment(1) is based on these key principles:
1. protect the environment by assessing and managing risk, preventing impacts and exploiting opportunities;
2. mitigate the effects of increasing environmental degradation and climate change while taking into consideration theirsocial impacts;
3. set and review targets to avoid, mitigate or reduce impacts on terrestrial and water ecosystems while pursuing a continuous improvement approach on process and performances, making the necessary resources available;
4. improve and promote the environmental sustainability of products and services;
5. meet legal compliance obligations and voluntary commitments, ensuring that operations are carried out in accordance with the legal requirements of the different countries.
and pursues ten Strategic Goals:

1.

2.

To apply internationally recognized Environmental Management Systems to the whole organization, underpinned by theprinciple of continuous improvement and by the adoption of environmental indicators to measure performance.
a. Ensuring implementation of ISO certification 14001 and its extension to the entire scope of the Group’s activities,
streamlining certifications in the various organizational areas and operational sites
b. Identifying roles and responsibilities of management and employees in implementing the environmental management
processesc. Managing environmental risk, in particular, pollution prevention and emergency response situations, controlling andlimiting any potential impact on people and the environment
To reduce environmental impacts by using the best available technologies and best practices in the design, construction, operation and decommissioning stages of plants, with a life cycle approach.
a. Applying, as extensible as possible, environmentally sustainable design criteria fostering circular solutions along thewhole value chain
b. Assessing and mitigating environmental and social impacts caused by the construction of new power plants and infrastructure, their operation or by major repurposing activities, including any positive fall out connected to sites and/or materials optimizationc. Ensuring the internal development and application of international best practices and Best Available Technologies (BAT)

3. a.

To build assets and infrastructures that preserve the land and biodiversity.
Assessing Dependencies, Impacts, Risks and Opportunities of the Group’s activities on biodiversity, natural resourcesand ecosystem services related to communities or groups that have traditional or recognizable usage rights
b. Developing and implementing infrastructures based on the impacts’ Mitigation Hierarchy principles (avoid, minimize,
restore, compensate), as reported on Enel’s Biodiversity Policyc. Monitoring and reporting progress towards the achievement of local and global goals and targets, for accounting performances on biodiversity and natural capital managementd. Protecting habitat of high biodiversity value and, among these, natural, forests and protected arease. Mitigating the visual and landscape impacts of power and distribution plants and protecting archaeological assets
during construction activities
f. Promoting innovative solutions of urban biodiversity in the implementation infrastructures and services

4.

To promote climate action aligned with limiting the increase of global temperature to 1.5 ºC with respect to preindustrial era, accelerating the energy transition towards zero emissions, and increase business adaptation to climate change.
a. To foster climate mitigation to reduce direct and indirect greenhouse gas emissions across the entire value chain byboosting renewables, sustainable and digital grids, electrification of energy demand and energy efficiency solutions,while managing transitional risks and seizing the potential opportunities that the energy transition provides
b. To reduce vulnerability to climate physical risks, both chronic and acute, increasing the resilience of the business activities and its infrastructure to the effects of climate change and the ability to respond promptly to adverse events

(1)

136

As also clearly stated in the Group’s Human Rights Policy.

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Appendix

5. a.

To preserve Water, Air and Soil and optimize water management.
Efficiently managing water resources for industrial uses, with a particular focus on “water stress” areas, reducing its
consumption, minimizing freshwater withdrawal and increasing the recovery rate of wastewaterb. Preventing and reducing the pollutant load of wastewater through their treatment or the zero-discharge configurationc. Preventing and controlling soil and air pollution, minimizing their impacts on ecosystem, and conducting rehabilitation
as needed
d. Adopting water management plans in hydropower plants that preserve the ecological state of catchments and themultipurpose services for local communities

6. a.

To ensure optimal waste management.
Preventing and reducing waste production by optimizing processesb. Adopting and implementing a waste management plan based on a waste hierarchy approach to prevent, reuse, where
possible recycle and lastly disposec. Substituting and minimizing use of substances of concern and phasing out substances of very high concern

7. a.

To promote circular economy approach and initiatives.
Applying, in collaboration with suppliers, a Circular Economy approach along the business value chain, implementing
from the early stages circular by design solutions to reduce resource consumption and minimize life cycle environmental impact, maximizing the quantity of recovered end-of-life equipment and materials
b. Improving traceability of products, components and raw materials with significant actual or potential impacts on biodiversity and ecosystems along value chainc. Improving Secondary Raw Material adoption for efficient resource management
d. Seizing life extension and equipment second life opportunities

8. a.

To develop innovative solutions for the environment.
Digitalizing process, and data management optimizationb. Developing innovative solutions to support renewable energy generation, integrated with energy storage systems
c. Strengthening smart grids as an enabling factor of the energy transition towards renewable and distributed energy

9. a.

To promote sustainable environmental practices with suppliers, contractors, customers and partners.
Extending Enel’s approach on management and improvement of environmental performance to partnershipb. Qualifying suppliers by assessment criteria based on environmental risk and performancesc. Assessing suppliers according to their environmental performances in activities carried out on Enel’s behalf, fostering
the implementation of environmental management systems

10.

To communicate with citizens, institutions, the Group’s workforce and any other relevant stakeholders about theCompany’s environmental performance.
a. Communicating the Company’s performance regularly and transparently and providing open data access to theGroup’s key environmental parameters and initiatives
b. Consulting and engaging periodically local stakeholders by free, prior and informed consent
c. Providing awareness campaign and training for employees to ensure their engagement and to increase competences;d. Contributing to increasing environmental awareness of stakeholders

The Environmental Policy is submitted to the Board of Directors with the approval of the Sustainability Report and consequently disseminated and applied with the commitment of the Top Management.

The Chief Executive Officer
Flavio Cattaneo

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Group environmental management
Enel ensures constant supervision and monitoring of environmentally relevant activities through a granular and harmonized organization at the level of central coordinating
structures and at Country level. Specifically:• at Group (Holding) level there is a central HSEQ (Health,
Safety, Environment and Quality) Function with responsibility for guidance, coordination and definition of environmental policy and all other specific guidance policies. Within the HSEQ Function, the SHE Factory has
been created, which is a unit dedicated to specialized
training for internal staff on Safety, Health and Environment issues;• at Business Line level, there are HSEQ Functions whoserole is to coordinate the management of the respective
environmental issues, ensuring the necessary specialist
support in keeping with the Holding’s guidelines;• at Country level, there are Staff and Business Linestructures as well as managers and contact persons
identified in the individual operating units that manage
the specific aspects of the various industrial sites.
Roles and responsibilities on Health, Safety, Environment
and Quality issues are defined and reported in the Company organization charts; delegations of function with power of attorney are also issued in both environmental andsafety matters, with assignment of necessary related decision-making and spending powers. This organization ensures the definition and management of operational procedures on these topics, in conformity with country regulations, as well as the compliance of the Integrated Health,
Safety and Environment Management System with therequirements of international standards ISO 14001:2015
and ISO 45001:2018.
Application of ISO 14001 certified Environmental Man-

agement Systems (EMS) is one of the strategic tools
defined by the Group’s Environmental Policy. At the endof 2023, almost all staff (93%(4)) were certified, while for
new plants and installations, activities are progressively planned with a view to preparing for certification. Given the complexity and variety of activities carried out in
the Group, an ISO 14001:2015 certified modular approachhas been adopted, with the definition of a management
system at Holding level, which provides guidance and coordination to the Business Lines on environmental issues.
Each Business Line has launched its own EMS focused on
its own specific activities. Furthermore, the main thermal
and geothermal production sites in Europe now also have
EMAS (Eco-Management and Audit Scheme) registration.
In support of activities for monitoring environmental performance and the definition of improved plans for theoperating units of the Business Lines, the Group environmental reporting system Enel Data on Environment (EDEN)
is used. During 2023, further improvements were made toversion 2.0 of the EDEN tool, in order to make the data
validation system and the calculation and reporting of environmental KPIs even more robust. Enel also has the global digital dashboards She.metrics and She.start for monitoring environmental accidents and improvement actions,which are defined during assessments or Extra Checking
on Site (see the paragraph “Operational analysis and monitoring tools”).
Enel has also promoted the extension of the principles ofEnvironment and Safety to its partners for new stewardships, with the aim of defining measures for managing environmental impacts and risks, as well as commitments tothe protection and conservation of natural habitats.

Training and internal communication
Training is one of the strategic objectives of the Group’s
policy and forms an integral part of the EMS. In 2023, approximately 32,000 hours of training on the environment
and nature were provided to more than 13,000 employees,of which over 8,000 hours were provided directly throughSHE Factory. Among the activities was the ongoing implementation of the environmental training program, targeted at increasing the skills of the Group’s technical staff andpeople with operational responsibilities (Environmental
Competence Building Program). In particular, in addition to
the pillars already covered in previous years, and subse-

quently reprised in some local areas – which concernedmanagement of waste and contaminated sites as wellas water and wastewater management – a topic that isvery topical and characteristic to the Group’s business has
been added, namely the environmental management ofbatteries. Besides the training of technical specialists, SHE
Factory actively defines and coordinates awareness campaigns at Group level on strategic issues. The objective for2023 was to raise awareness on biodiversity issues andwaste management.

(4) In 2023 the reporting methodology was revised so as to base it on the number of people covered by the management system. This led to a deviation of 99%
compared with the data published in 2022, which referred to the Company’s entire portfolio.

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Biodiversity Awareness.
Every year, Enel promotes in-house initiatives withthe aim of promoting greater awareness to all its
employees on biodiversity protection. A webinar
on biodiversity was produced in 2023 that covered,among other things, the policy principles andcommitment of the Group, performance monitoring,the main impacts of the business on biodiversity
and, finally, ongoing projects of the various BusinessLines. The course was provided to all Group staff
and was made available in the various internal
environmental training modules.

Waste Awareness.
In 2023, a global campaign on waste management
was delivered through webinars and in-person
sessions, which involved over 4,500 colleagues withmanagement and/or operational responsibility rolesin this sector, as well as almost 700 of the main
contracted companies present in all Countries,
Regions and Business Lines, and which produce ormanage waste during the course of their activities.
The campaign was aimed at strengthening knowledgeof the waste management guidelines adopted by theGroup, as well as raising awareness about best waste
management and recovery practices, from production

to storage, transport and end destination.
In the main countries of the Group, awareness days
were also organized for contractors to encouragecorrect management of environmental issues, with aparticular focus on the importance of their commitment
to correct waste management and maximizing waste
recovery, across the entire supply chain.

Assessing impacts, dependencies and risks
The identification of potential impact factors on natureand biodiversity is fundamental for Enel in order to define
the most effective strategies to avoid, minimize, remediate or compensate for the associated impacts, in line withthe provisions of the Mitigation Hierarchy included in theGroup’s Environmental Policy. Similarly, the identificationof dependencies on natural capital and biodiversity makes
it possible to identify the most appropriate strategies toreduce the related risks to the Company.
For the management of impacts and dependencies alsowith reference to the entire value chain, Enel has adopted
a combined and progressive approach, aimed primarily atevaluating those related to direct activities in operational
assets as well as in the design and construction of new
assets and subsequently to the procurement of goods inthe supply chain.
Specifically:• as regards direct activities in operating assets, a basic
investigation was carried out with data from the utility
sector, aimed at defining materiality matrices for eachtechnology relevant for the Group, identifying priority investigation sites (hotspots) by cross-referencing

with the site-specific characteristics of the asset, andperforming a preliminary qualitative assessment of thelevels of residual risk associated with each technology;• as regards siting and construction of new plants, evaluations were undertaken with the aim of adopting
unique evaluation criteria and specific objectives for No
Net Loss and No Net Deforestation, as outlined in theparagraph “Enel’s commitment to biodiversity”;• as regards the supply chain, from procurement plansfor equipment and plant components, an analysis waslaunched in 2023 to examine the corresponding raw
materials and the impacts associated with their extraction and refinement, particularly affecting habitats
and environmental matrices.
The assessment of impacts, dependencies and risks,
which are described in greater detail in the following paragraphs, was conducted in accordance with the general
guidelines and recommendations for the energy sector
developed by the Taskforce on Nature-related Financial
Disclosures (TNFD) and, where applicable, by the Science
Based Targets Network (SBTN).

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Impact factors
The analysis of direct activities covered all of the Group’s
main infrastructures, ranging from electricity production
from renewable, thermal and nuclear sources, to electricity distribution systems, in the main countries where theGroup is present(5). Currently, the analysis does not consider activities and infrastructures linked to energy services,such as electric car charging stations, or staff offices, as
they typically operate within built environments.
The main impact factors (or pressures) that may be exerted on nature are summarized in the following categories,
which have been adopted as the starting point for analyzing actions implemented to mitigate the associated risks

IMPACT FACTORS BY TECHNOLOGY

1. use and modification of ecosystems (terrestrial, fresh
water, marine);
2. use of resources (mainly water withdrawal);
3. climate change (GHG emissions);
4. pollution (emissions, discharge, waste);
5. disturbances (noise, odors, visual impact, artificial lighting) and introduction of invasive species.
The table shows the results of the preliminary materiality analysis of impact factors conducted at Group level for the various
technologies via the ENCORE(6) tool applied to the utility sector, by internally reviewing the scores based on the specificconstruction and operating solutions adopted by the Group.

HYDRO

SOLAR

WIND

GEOTHERMALCOAL

OIL & GASNUCLEAR

GRIDS

M

M

M

M

M

M

M

NM

NM

NM

M

VM

VM

VM

1.1

Use of terrestrial ecosystems

VM

1.2

Use of fresh water ecosystems

VM

2.

Water withdrawal

M

3.

Emissions of climate-changing
gases (GHG)

NM

NM

VM

M

4.1

Air pollutants (non-GHG)

NM

M

M

NM

NM

4.2

Water pollutants

M

NM

NM

NM

M

4.3

Soil pollutants

M

M

NM

NM

M

4.4

Solid waste

M

NM

VM

NM

M

M

5.

Disturbance factors

NM

M

NM

NM

M

M

VM Very Material

NM

NM

M

Material

M

NM Not Material

The overall analysis indicates that, considering only thematerial impact factors with respect to the different technologies weighted according to their share of production
at the Group level(7), the main impacts on the environment

NM

M

NM

Not applicable

relating to direct activities are associated with the use/
modification of terrestrial ecosystems and water withdrawal.

IMPACT FACTORS PRIORITIZED BY MATERIALITY
FOR THE DIFFERENT TECHNOLOGIES, WEIGHTED ACCORDING TO THEIR SHARE OF GENERATION

2%

5%
1.1 Use of terrestrial ecosystems(5) Italy, Spain, Chile, Colombia, Brazil and the United States.
(6) ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure), a tool developed by the Natural Capital Finance Alliance (https://encore.naturalcap7%
24%
ital.finance/en/about).
2. Water(7) Production data Y2022. Grids were given a conventional weighting, being the averageof the withdrawal
values associated with the various generation technologies,
also by virtue of its transversal function with respect to them.
10%140

Sustainability Report 2023

4.4

Solid waste

3.

Emissions of climate-changing gases (GHG)

5.

Disturbance factors

1

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to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

IMPACT FACTORS PRIORITIZED BY MATERIALITY
FOR THE DIFFERENT TECHNOLOGIES, WEIGHTED ACCORDING TO THEIR SHARE OF GENERATION

5%

2%

7%

24%

10%

10%
18%
11%
12%

1.1

Use of terrestrial ecosystems

2.

Water withdrawal

4.4

Solid waste

3.

Emissions of climate-changing gases (GHG)

5.

Disturbance factors

1.2

Use of fresh water ecosystems

4.2

Water pollutants

4.3

Soil pollutants

4.1

Air pollutants (non-GHG)

Dependencies
The dependencies found to be material for the main direct
activities associated with technologies operated by theGroup are attributable to the ecosystem services neededfor operation of plants and infrastructures, as summarized
below:
1. regulation of the climate and climatic events on which
the operation of all assets depends;
2. protection from floods and extreme weather events,
which are one of the primary causes of failure and unavailability of renewables plants (photovoltaic and wind)and distribution facilities;
3. availability of use of fresh water, surface water andgroundwater for production cycles, mainly in thermoelectric power generation;
4. soil stabilization and erosion control, important for hy-

droelectric reservoirs, renewables plants (photovoltaic
and wind), and network infrastructure;
5. conservation of the water cycle, which enables theoperation of hydroelectric power plants.
Dependencies on the quality of the water resource and on
pollutant filtration capacity were not found to be material
for the technologies considered, as reported below.
The table shows the results of the preliminary materiality
analysis of ecosystem dependencies conducted at Grouplevel for the various technologies through the ENCORE
tool applied to the utility sector, by internally reviewing thescores based on the specific construction and operating
solutions adopted by the Group.

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DEPENDENCIES BY TECHNOLOGY

HYDRO

SOLAR

WIND

GEOTHERMALCOAL

OIL & GASNUCLEARGRIDS

DEPENDENCIES BY TECHNOLOGY

HYDRO

SOLAR

WIND

GEOTHERMALCOAL

OIL & GASNUCLEAR

GRIDS

VM

VM

VM

NM

NM

NM

VM

1.

1.
2.
2.
3.1
3.1
3.2
3.2
4.
4.
5.
5.
6.
6.
7.
7.

Climate regulation
Climate regulation
Flood and storm protection
Flood and storm protection
Use of surface water
Use of surface water
Use of groundwater
Use of groundwater
Soil stabilization and erosion control
Soil stabilization and erosion control
Conservation of the water cycle
Conservation of the water cycle
Water resource quality
Water resource quality
Filtration of pollutants
Filtration of pollutants

VM

VM

VM

NM

NM

NM

VM

M

M

M

M

NM

NM

NM

VM

M

M

M

M

NM

NM

NM

VM

VM

NM

M

VM

VM

VM

VM

NM

M

VM

VM

VM

NM

VM

M

NM

M

NM

VM

M

NM

M

VM

M

M

NM

NM

NM

NM

M

VM

M

M

NM

NM

NM

NM

M

VM

M

M

M

M

VM

M

M

M

M

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

VM Very Material

M

Material

NM Not Material

Not applicable

VM Very Material

M

Material

NM Not Material

Not applicable

The overall analysis indicates that, considering only thedependencies which are material with respect to the different technologies, each weighed according to its shareof production at Group level(8), the main dependencies
for the Company are associated with availability of fresh
surface water and with climate regulation, which is also

linked to conservation of the water cycle. Enel’s decarbonization strategy, which is focused on the phase-out
of fossil fuels and the growth of renewables (wind, solar
and batteries), reduces impact on the climate by helping to
reduce pressure on the ecosystem services on which theCompany depends, such as water resources.

DEPENDENCIES ON ECOSYSTEM SERVICES PRIORITIZED BY MATERIALITY
DEPENDENCIESON ECOSYSTEMSERVICESPRIORITIZEDBY MATERIALITY
FOR THE DIFFERENTTECHNOLOGIES,
WEIGHTEDACCORDINGTO THEIR SHARE OF GENERATIONFOR THE DIFFERENT TECHNOLOGIES, WEIGHTED ACCORDING TO THEIR SHARE OF GENERATION
5%
5%
15%
15%

23%
23%

3.1
3.1
1.
1.
5.
5.

15%
15%

4.
4.

22%
22%
20%
20%
The analysis of dependencies also considered scenarios
resulting from the predictable effects of ongoing climatechange, with respect to each technology and each Country and Region in which the Group is present, in order todefine specific adaptation and resilience plans. The occurrence of acute meteorological events and significant
chronic phenomena, intensified and accelerated by on-

2.
2.
3.2
3.2

Use of surface water
Use of surface water
Climate regulation
Climate regulation
Conservation of the water cycle
Conservation of the water cycle
Soil stabilization and erosion control
Soil stabilization and erosion control
Flood and storm protection
Flood and storm protection
Use of groundwater
Use of groundwater

going climate change, can in fact alter the efficacy of theecosystem services mentioned above, causing increasing
effects on the integrity, operational continuity and correctfunctioning of the installations. For a more detailed description of the activity carried out and the results of theseinvestigations, please refer to the chapter “Zero emissions
ambition and just transition”.

(8) Production data Y2022. Grids were given a conventional weighting, being the average of the values associated with the various generation technologies,
also by virtue of its transversal function with respect to them.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Analysis of environmental risks and opportunities
The analysis of environmental risks and opportunities associated with Enel’s operating activities was conductedwith a multifunctional integrated approach. The analysis,started in 2022 and continued in 2023 based on the results of the above-described materiality analysis for impacts and dependencies, led to the identification for eachtechnology of the main operational and economic-financial risks expected for the Company, as well as social andenvironmental risks, and the identification of the main
opportunities in relation to each relevant impact factor
and dependency. This preliminary screening analysis led
to the definition of an evaluation template for each technology, in which the main critical events of physical type(both acute in the short-medium term and chronic in thelong term) and of transitional type (resulting from possible
changes in the regulatory, technological, reputational ormarket framework) were identified with also the main associated risks and opportunities.
Below is a summary of the main operational and economic-financial risks identified as material for Enel in relation
to the impact factors and dependencies specified abovein line with TNFD recommendations:• reduction or interruption of generation capacity;• recovery and repair needs;• authorization delays;• adaptation and technological innovation needs;

IMPACT DRIVERS (OR PRESSURES)• additional insurance fees;• loss of competitiveness.
At the same time, this screening phase made it possible toidentify the following main opportunities:• improvement of environmental and sustainability performance, such as efficiency in the use of resources
and initiatives for the protection, restoration and regeneration of natural habitats;• business opportunities, linked for example to the offer of nature-positive energy products and services,
the launch of new partnerships in sustainable innovation sectors, access to green financing, and strategic
choices of commitment and sector leadership, aimed
at the economic, reputational and financial growth of
the Company.
The analysis of risks linked to the potential impacts of theGroup activities on the environment reaffirmed the action
priorities identified last year and described in the following table. The first column summarizes the impact significance for each category linked to the Group’s activity; thesecond column indicates the level of control, expressedas the maturity of the commitments and targets adopted, and the last column indicates the consequent level ofpriority in the Group strategy, on a qualitative scale (low,moderate, high, very high).

IMPORTANCELEVEL OF CONTROLHigh

Moderate

High

High

Very highVery high

High

High

Low

Moderate• Magnitude• Probability• Goals• Mitigation plans

PRIORITY

Use of terrestrial ecosystems• Land use• Habitat transformation and fragmentation

Use of natural resources• Water withdrawal

Climate change• Climate-changing gas emissions

High

Moderate

Moderate

Pollution• Pollutant emissions (non-GHG)• Water and soil pollution• Waste production

Disturbance factors and other• Noise and other• Invasive species

Moderate

Low

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143

The analysis highlighted a “high” and “very high” level of control for risks associated with the use of natural resources andwith the potential release of pollutants in environmental matrices, as well as with the consequences of climate change.
In fact, for years Enel has already been defining specific improvement targets that make it possible to mitigate the mainrisks associated with these impact factors in the future.

The identified intervention priorities therefore relate to
the control of risk associated with land occupation and thetransformation of ecosystems, and particularly to the use ofland and the transformation of terrestrial habitats, in relation to which new commitments were made at Group levelalready last year (see the paragraph “Enel’s commitment tobiodiversity”).

Asset prioritization and IRO (Impact-Risk-Opportunity)
analysis aggregated by technology
During 2023 the Group moved from a sector analysis to asite-specific analysis aimed at prioritizing assets in operation
by means of an IRO (Impacts-Risks-Opportunities) analysis
for the different technologies(9) in the Group’s main countries and therefore to the identification of sites (hotspots)
on which to subsequently undertake local analysis of poten-

Company’s impact
on nature

tial impact characteristics. The ranking of assets was carriedout based on the estimated corresponding level of potential
impact exerted, which was evaluated starting from the local
natural conditions and the site-specific value of one or more
impact indicators specific to the plant technology, in accordance with the SBTN indications shown in the figure.

Contribution to impact
drivers (pressure)

The local natural conditions were evaluated starting fromthe biodiversity indicators already adopted by Enel (see theparagraph “Interaction of assets with biodiversity”) and, more
specifically, based on the values of indicators (KPI) relating to
the transformation of natural habitats and to the biodiversity
significancy (presence of protected area, threatened species
or critical habitats) in each of the assets, or to their presence inwater-stressed areas. The significance of impact drivers was
instead estimated by adopting threshold values for the main
impact KPIs of each technology, said KPIs having been chosen
based on the corresponding materiality matrix. In addition tosites with significant impact KPIs, sites deemed relevant werealso added in the selection, based on evidence emerging
from records relating to the various “Operational analysis andmonitoring tools” adopted by the Company, such as records
of Environmental Events, records of ECoS (Extra Checking on
Site) Improvement Actions, and records of environmental risk
analyses in the ISO 14001 management systems.
This enabled the identification of hotspots, i.e., sites or areas with operational plants or infrastructures that present
the highest potential level of impact/risk, due to the simultaneous occurrence of the established natural and impact
conditions of significance. During 2024, these hotspots will

“State of nature”
indicators

be subject to a subsequent in-depth investigation undertaken according to the LEAP (Locate, Evaluate, Assess, Prepare disclosure) methodology defined by the TNFD, to take
into account the specific local context and the interaction ofeach technological asset with the local natural and biodiversity characteristics, as envisaged for the priority applicationof the IRO (Impacts-Risks-Opportunities) analysis to complex
organizations.
During 2023, based on the asset profiling data describedabove, a preliminary impact/risk assessment was also carried out at corporate level. To this end, an internal methodology was developed that refers to the aggregate valuesof land occupied by the plants (in ha) of each technology incorrespondence with the different levels of potential impact,
evaluated based on the concomitant significance of one ormore of the previous KPIs relating to natural and impact conditions. Based on the methodology adopted, an estimate of
the inherent risk (IR) and the level of control exercised by theorganization (C) was then carried out, thus arriving at the final
assessment of residual risk (RR)(10). In this preliminary phase ofanalysis at a qualitative level, a criterion of correspondence(1:1) between potential environmental impact and economic-financial risk for the organization was adopted.

(9) At the time it was not considered a priority to extend this phase of investigation to coal and nuclear technologies. Operational plants that adopt either ofthese technologies are subject to stringent impact assessment and environmental management requirements and controls by control bodies and competent authorities. In line with the Group’s strategies, a progressive closure or reconversion plan is also envisaged for these plants.
(10) The following residual risk calculation formula is adopted: RR = IR x (1 – C), in which the inherent risk (IR) represents the potential risk in the absence ofmanagement control and prevention actions (C ) already implemented by the organization in order to mitigate the risk to residual risk (RR) values deemed
acceptable. The following risk judgment scale is applied: <2 Low, <3 Tolerable; <4 Needs improvement; <5 Significant; 5 = High, requiring the adoption ofintervention actions for a RR value ≥ 3.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

The main results emerging from the preliminary investigations conducted are summarized below:• the hotspot sites represent a very small area (<5%) outof the total area occupied by operational sites in the•4

Performance 2023

5

Appendix“core” countries where the Group is present and theresidual risk value therein is always “tolerable” (RR<3);the aggregated (weighed averages) residual risk values
for the different technologies are always “low” (RR<2).

RESIDUAL RISK (RR) BY TECHNOLOGY

Residual risk (RR)

1

1.4
0.9

Wind

1.1

1.1

1.0
0.7

Hydroelectric

Solar

Geothermal

Thermal

Grids

Preliminary investigations on the supply chain
The analysis of the impacts on nature linked to the supply
chain was started in 2023 beginning with an evaluation of
the Group’s investment plan, identifying correspondingneeds in terms of plant components, equipment and products necessary for their implementation. Starting from thisdata, the constituent raw materials were then determined(unprocessed and as processed/incorporated) along with
their consumption. Through the use of public tools and databases(11), the analysis then focused on the impacts linked
to the life cycle phases (LCA – Life Cycle Assessment) ofextraction and refinement of the main raw materials identified, phases which are recognized by SBTN guidelines as

Potential impact of
raw material

having the most significant potential impacts on nature.
At the same time, an investigation was carried out on therelevant countries of origin of raw materials at global level,focusing on countries environmental performance (throughindicators regarding protection of biodiversity and water
resources, air quality, waste treatment, etc.) and on the average recovery rates of materials in production processes.
A preliminary qualitative assessment was then carried out
on the impacts on nature linked to the main raw materials
in the supply chain, which are potentially critical for the organization from an environmental viewpoint, based on thefollowing (qualitative) formula:

Priority of need x LCA
impact indicator

The preliminary investigation conducted in 2023 will be
updated in 2024 based on the new Industrial Plan and further revised and integrated based on specific informationthat will derive from the direct analysis of Enel’s main supply chains and associated product environmental certifi-

Fraction produced x
Country ENV Performancecates (EPD – Environmental Product Declaration), with theaim of building a qualitative-quantitative impact matrix
that progressively integrates direct data with the public
sector data used as the basis for the analysis.

(11) Ref. “Environmental Performance Index” (https://epi.yale.edu/about-epi) and LCA analysis using ecoinvent 3 (https://ecoinvent.org/).

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Operational analysis and monitoring tools
From an operational point of view, in order to identify andminimize environmental risks related to its activities, Enelhas equipped itself at Group level with a series of important tools for guidance, investigation and intervention withrespect to both the environment and the socio-economic
context in order to support the protection of the environment and associated ecosystems in a capillary and synergistic way within the organization.
Group Policy for the classification and analysis of environmental accidents. Environmental accidents are classified according to their type and relevance. This classification is based on their possible impact on the environmental matrices and on any potentially sensitive areas(ecosystems and protected areas), in addition to their
negative impact on the organization itself (operational,
legal, reputational and financial). In accordance with theirclassification and magnitude of such accidents, the policy
defines communication procedures, the creation of analysis groups with the participation of the Global Functions,cause analysis, and monitoring of subsequent corrective
actions and improvements.
Policy for assessing risks and opportunities related toenvironmental impacts. The policy, which is compliant
with ISO 14001:2015 EMS requirements, applies to all operational sites (including those in the process of being
decommissioned) and to the Group’s staff functions, andprovides for the adoption of a single model for the classification and assessment of risks and opportunities linked to
impact factors (or pressures) exerted on the environment,
through the use of an IT tool called ERA (Environmental Risk
Analysis). The analysis process involves evaluating both theinteractions of significant operational aspects with various
environmental matrices, and mitigation controls adopted
for adherence to compliance regulations, as well as voluntary continuous improvement targets; furthermore, taking
into account the results of the analysis of any accidental
environmental events and periodic environmental visits tothe various sites (Extra Checking on Site – ECoS), it allows
a high level of integration of continuous control processes
between the various levels of the organization and the related prioritization of improvement actions.
Extra Checking on Site (ECoS) Policy. The ECoS is a tool
for planning and conducting site visits carried out by
cross-divisional teams of experts at the Group’s plants andoperational facilities, with a view to defining improvement
plans and/or sharing best practices. In 2023, the different
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Sustainability Report 2023

operates conducted 89 ECoS with a focus on the environment, far exceeding the defined target (72 ECoS). In the2024-2026 plan, a minimum target of 50 ECoS per year
was proposed due to the deconsolidation of activities insome countries. Also see the chapter “Health and safetyof people”.
Environmental qualifications and inspections for suppliers of products and services. Enel has adopted a supplierenvironmental assessment procedure that is structured
and homogeneous for the entire Group. The procedure is
activated in the qualification phase, for high environmental risk activities, and following important environmental
events. Environmental assessments are aimed at verifying
the EMS of suppliers as a whole and propose improvement
actions to be shared with the supplier. They are also accompanied by environmental inspections conducted at
the suppliers’ operating sites and which include, where
relevant, assessments on specific aspects of biodiversity.
In order to standardize inspection standards and obtain astructured and widespread control system, Enel has adopted Group Guidelines on Environmental Inspections,which define the planning criteria as well as methods ofexecution in the field (see the chapter “Sustainable supply
chain”).
Consequence Management Procedure. At Group level, Enel has adopted an organizational procedure thatdefines roles and responsibilities in order to implement
Consequence Management, as well as actions against its
contractors in the event of their involvement in significant
environmental events and/or due to low performance on
specific environmental issues encountered during performance of the contract.
Stop Work and Emergency Management Policy. At Grouplevel, Enel adopts a policy that allows the risk of environmental impacts to be prevented or minimized, by authorizing all workers to stop activities if there is a potential environmental risk. Furthermore, the Company adopts emergency management plans at global and local level thatcomply extremely rigorously with the legal requirements
and obligations established in the various countries.
Finally, it should be noted that, as part of the analysis of
the local context, and forming the basis for the community
relations model, an assessment of the main social and environmental risks and opportunities is carried out in orderto minimize them and promote socio-economic development. See the chapter on “Engaging communities”.

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Stakeholder engagement andmateriality analysis

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5

AppendixPreserving biodiversity
3-3

304-1

304-4

Enel’s commitment to biodiversity
Protection of biodiversity is one of the strategic objectives of Enel’s environmental policy and is regulated by aspecific policy. The policy, adopted in 2015 and updated
in 2023 by the Board of Directors, defines the guidelines
for all the Group’s biodiversity protection initiatives andthe principles according to which they operate, alignedwith the Kunming-Montreal Global Biodiversity Framework(COP 15).

BIODIVERSITYPOLICY
Enel’s roadmap on biodiversity conservation is inline with the Kunming-Montreal global biodiversity
framework, embracing the mission of taking action tohalt and reverse biodiversity loss by 2030.
In particular, our Company is committed to:• applying the mitigation hierarchy principle in all
project phases, avoiding and reducing impacts onhigh biodiversity areas and ecosystem functions
and services, reducing deforestation and habitat
transformation; where avoidance is not possible,
we strive to minimize adverse impacts, implement
rehabilitation and restoration measures and finally,
compensating for residual impacts;• implementing, in the case of biodiversity
significant residual impacts for new development
projects, compensatory works according to thecommitment of “No Net Loss” of biodiversity and“No Net Deforestation”, and where applicable tohave a Net Positive balance;• assessing and transparently disclosing impacts,

•
•

•

•

dependencies, risks and opportunities on
biodiversity along operations, supply and value
chains, setting goals and targets on priority issues;
promoting biodiversity and nature-based
solutions integration into business solutions forcustomers and urban ecosystem, boosting related
environmental and social positive impacts;
collaborating with public administrations, research
centers, environmental and social associations
and international stakeholders, as partners in theconservation, restoration and sustainable use ofresources, fostering new innovative and systemic
approaches and synergies while respecting
the rights of indigenous peoples and local
communities;
monitoring and reporting progress towards theachievement of local and global goals and targets
in alignment to main international standards andin a transparent and responsible approach, foraccounting performances on biodiversity andnatural capital management;
promoting environmental awareness towards
workers and stakeholders, to valorize biodiversity
conservation and responsible use of natural
resources.

In its Sustainability Plan published in the 2022 Sustainability Report, Enel has set out its commitment to Biodiversity,
setting itself clear targets up to 2025 and 2030.

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Enel’s commitment
Enel undertakes to achieve No Net Loss of biodiversity
for new infrastructures by 2030, commencing its
adoption on selected projects in areas of highbiodiversity importance beginning 2025. To achieve thisgoal, Enel will work in accordance with the principlesof the Mitigation Hierarchy to avoid, minimize andreverse impacts on natural habitats or species that are
threatened, endemic or restricted in range.

To implement its commitment, Enel has developed amethodology, with the technical and specialist support
of a leading consultancy company, for the site-specificadoption of the ’No Net Loss’ (NNL) principle on biodiversity. During 2023, the methodology was tested on renewable power generation plants, both those in the designphase and those in operation, which enabled the metrics
for assessing impacts and possible compensation to befine-tuned. As regards grids, the methodology has been

In addition, Enel is committed to conserving forests
and, if deforestation cannot be avoided, will reforest
areas of equivalent value in line with the principle of“No Net Deforestation”.
Enel will not build new-generation infrastructures inareas designated as UNESCO World Heritage Natural
Sites.

applied to some existing lines and testing is underway on
the design phase of a new medium voltage overhead line
in an area of particular natural interest, the authorization
process for which is underway.
This methodology, which is being implemented in theoperational processes of the Business Lines, will be progressively applied – depending on the type of habitat –to projects in the renewables and networks development
pipeline between 2025 and 2030.

No Net Loss: first results of theimplementation
Guayepo III project: the 200 MW solar plant will bebuilt in the Caribbean region of northern Colombia(Municipalities of Sabanalarga and Ponedera –Atlántico Department), and will cover an area ofapproximately 500 ha, of which just over 100 ha arein natural areas. The absence of interference withcritical habitats will be guaranteed, in full compliancewith standards, through on-site monitoring to
exclude the possibility of impacts on priority animal
species identified within the Biodiversity Action Plan
(BAP), such as the Río Cesar white-fronted capuchin(Cebus cesareae). Unavoidable impacts on natural
habitats will be more than compensated throughactions already indicated in the Environmental
Impact Assessment presented to the Ministry ofEnvironment and Sustainable Development in 2022,
which envisages the restoration of 557 ha of naturaland semi-natural areas within the tropical dry forest
ecosystem. This area is more than double what was

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Sustainability Report 2023

calculated by applying the quantitative No Net Lossmethodology developed by Enel. The project will
therefore have a Net Positive impact. Numerous
compensatory actions are included in the project,based on an active restoration and rehabilitation
approach, including: expanding existing vegetative
areas, soil restoration, installing perches andconstruction of shelters and dens, and planting
native herbaceous, shrub and tree species associatedwith water bodies, as well as other actions for thesustainable use of natural resources.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

Appendix

5Interaction of assets with biodiversity
Enel measures its environmental performance on aspectsof biodiversity in a transparent and responsible way, bothin the construction of new plants and during the operationof its sites. For this reason, in 2021 the Company defineda set of specific indicators, which are updated annually, tomeasure the impacts generated and monitor the effectiveness of action plans.
Land occupation: the area of land occupied by assets. Thisis a general indicator, as it does not provide an indicationof the characteristics of the soil habitat.

Land occupation – Power Generation Assets
During 2023, important work was carried out to map thesites, strengthening the criteria and representation on the
Geographic Information System (GIS), which led to the re-vision of land occupation data for power generation assets, particularly for wind and hydroelectric assets.

Land occupation (Hectares - ha) – Power generation assets and technology
Technology

2023

2022(12)2023-2022

Solar

33,40329,899

3.504

Wind

11,768

11,408360

202,446

202,446

-

442

442

6,098

6,318

220

254,157

250,513

3,644

Hydroelectric
Geothermal
Thermal
Total

(13)

Land occupation (Hectares - ha) – Power generation assets and country
Country

2023

2022

2023-2022

Italy

20,154

20,147

7

Spain

26,84625,361

1,485

Latin America(14)191,769

189,424

2,345

Rest of the world(15)Total

15,38815,581

193

254,157

250,5133,644

During 2023, the land occupation of renewable power generation assets increased compared with 2022 by
3,864 ha, of which 3,504 ha (91%) related to the construction of new photovoltaic plants, and the remaining

360 ha (9%) to wind farms. For thermoelectric power, thedecrease in physical land occupation compared with 2022
of 220 ha (-3.5%) is due to the sale and disposal of someplants.

(12) Land occupation relating to plants was updated by reviewing the boundary delimitation of the assets.
(13) The reduction in physical occupation of thermoelectric plants is due to the decommissioning of some plants during 2023.
(14) Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama and Peru. All assets operating in 2023 are included, including those that left theCompany’s portfolio during the year(15) Australia, Canada, Greece, India, Morocco, Portugal, Romania, South Africa, USA and Zambia. All assets operating in 2023 are included, including those thatleft the Company’s portfolio during the year.

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Land occupation – Grid Assets
The data on land occupation(16) of the distribution infrastructure is calculated for High Voltage (HV) and Medium

Voltage (MV) lines, and for primary and secondary transformer substations.

Land occupation – Grid assets and technology
Technology

Hectares (ha) (17)km

Primary and secondary substations

2,089

-

High Voltage Lines

52,05332,232Medium Voltage Lines

434,748

659,270

Total

488,890

691,502

Hectares (ha)

km

Italy

287,679

350,755

Spain

98,755132,506

Land occupation – Grid assets and country
CountryLatin America

102,456

208,241

Total

488,890

691,502(18)

Transformation of natural habitats: measures the area ofland occupied in hectares (ha), classified according to the
IUCN(19) habitat categories on which the new assets werebuilt in the reporting year. It therefore represents a specificindicator of the impact on habitats that have been transformed to build plants.
Power generation plants that entered operation in 2023
occupy 3,864 ha of land, of which 2,113 ha (55%) relate tohabitats that have already been modified and the remaining 1,751 ha (45%) to natural habitats. In 2022 the overall
land occupation relating to new plants was 11,807 ha, of
which 5,770 ha was in natural habitat, amounting to 49%of the total. This reduction, in absolute and relative value, isin line with the mitigation hierarchy principle adopted byEnel, which involves analyzing the impacts on nature of thesite during its development phase, avoiding, where possible, the selection of sites in natural habitats, and insteadfavoring modified habitats. Of the natural habitats impacted, only 183 ha were forest habitat.
As far as the distribution network is concerned, almost all
HV and MV lines were built in the 1970s, mainly in urbanized areas. Around 70% of the infrastructures built to dateare situated in cultivated areas, grazing land and urban
areas; only the remaining 30% of the infrastructures have
impacted natural-type habitats, of which only 9% are forest-type habitats.
Presence of assets in protected areas (GRI 304-1): mapping was carried out for all power generation assets within
Enel’s entire portfolio, and for the second year also for gridassets, in the main countries(20), to assess the presence ofassets in UNESCO World Heritage Natural areas and IUCN
I-IV classified protected areas.

Presence of power generation plants – by technology(21)Presence in protectedareas (ha)Presence in protectedareas as % of the total
occupied by technology

4

32

0.10

9

119

1.01

90

5,611

2.77

total no.
of infrastructures

no. of infrastructures inprotected areas

Solar

190

Wind

292
601(22)

Technology

Hydroelectric plants
Geothermal plants

40

-

-

-

Thermoelectric plants

84

5

34

0.55

1,207

108

5,796

2.28

Total

(16) Land occupation relating to assets is in the process of being updated.
(17) For grids assets, land occupation is calculated using PUC (Portale Unico Cartografico – Single Cartographic Portal) for primary and secondary substations it
is reported as the surface area occupation (variable depending on the technology), whereas for MV and HV lines it is calculated as the geometric projection
on the ground of their length for the width of the corresponding buffer zone, which varies depending on the technology.
(18) Chile, Peru, Colombia and Brazil.
(19) IUCN - International Union for Conservation of Nature (https://www.iucnredlist.org/resources/habitat-classificationscheme).
(20) Italy, Spain, Chile MV, Peru, Colombia and Brazil.
(21) The data reported on GIS has been revised and optimized, leading to adjustments in the value of hectares (ha) and the number of plants compared with last year.
(22) The number of hydroelectric plants, with related hydroelectric basins and auxiliary systems, is declared.

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AppendixPresence of power generation plants - by country
Hectares (ha)% in protected areas out of the total
occupied in the country

Italy

3,799

18.85

Spain

1,950

7.26

32

6.12

Country

Rest of the world
Chile

15

0.03

Total

5,796

2.28

The number of power generation plants situated within protected areas (IUCN I-IV) remains unchanged since2013, as no new plants have been built in these areas. The
presence of power generation assets in protected areas
mainly concerns hydroelectric plants that were predominantly built in the 1970s or earlier (in many cases before
the creation of protected areas), both in Europe and in
Chile, and are managed according to basin management
plans shared with local authorities. Projects relating tothese plants notably include the ENDESA-bats multi-year
project for the study and monitoring of bats, which has
been developed voluntarily in the autonomous provincesof Catalonia, Galicia, Andalusia and Aragon, and the project carried out in the area of the Hautes Pyrénées Natural
Park, in conjunction with the Brown Bear Foundation (FOP),
aimed at restoring habitats by planting small flora species
to provide food for brown bears and their cubs.

Presence of distribution infrastructures - by technology
Technology

Hectares in protected areas (ha)% in protected areas out of thetotal(23) occupied by the asset

22

1.1%

Primary and secondary substations
High and medium voltage lines

14,179

2.9%

Total

14,201

2.9%

The countries in the Enel Grids portfolio with the highest
proportion of assets present in protected areas are Spain,
Italy and Brazil. In cases where the infrastructure falls within a protected area, Enel creates the best solutions to miti-

gate impact on the surrounding environment, also considering the need to comply with its service obligation. Below
are some examples of mitigation projects currently under
way for infrastructure that falls within protected areas.

LAND OCCUPATION(HA) IN PROTECTED TARGET SPECIES AND
AREAS
CONCERNED PROTECTED AREATECHNOLOGYSITE

HABITAT

Repositioning ofexisting HV line

Colombia- ZipaquiráUbaté Line

6.7

Birds: Anisognathus igniventris,
ForestEriocnemis vestita;
Protected area: Distrito de Manejo
Integrado Páramo de Guargua yLaguna Verde

Installation of flight diverters inhumid areas and natural habitats
as a result of a monitoring study on
local bird species.
In-depth focus follows

New MV line

Spain Arties Lag

1

Birds: Tetrao urogallus
Aigüestortes National Park

Installation of collision avoidance
devices using drones, andmonitoring campaign

Forest

BIODIVERSITY PROJECTS(23) Out of the total of HV and MV lines in Italy, Spain, Chile MV, Peru, Colombia and Brazil.

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Biodiversity Significance(24): this qualitative indicator
makes it possible to classify power plants based on theimportance of the area in which they are built, and is basedon the value of biodiversity potentially present in the vicinity of said area (high/medium/low). The methodology
therefore makes it possible to identify priority sites for theprotection of biodiversity in order to ensure proper man-

Sites of high biodiversity significance/total
plants by technology(25)38 / 190

In 2023, only one power plant(26) was built in areas withhigh biodiversity value, 3 fewer than in 2022. Although
an initial analysis, based on literature data, suggested thepotential occurrence of threatened species, monitoring
campaigns carried out during the environmental impact
assessment did not confirm their presence on the ground.
For this reason, validation of the categorization of sites
as high, medium or low significance should be reviewed
against the results of site environmental and social impact
assessments, BAPs or other site management plans toconfirm the biodiversity significance score.

agement to mitigate potential impacts. Also in this case, it
should be noted that most sites of high significance relate
to hydroelectric plants, which are generally infrastructures
built in mountain areas and present in the locality for many
years and in many cases before the creation of protectedareas, the classification of critical habitat or the identification of threatened animal species.

107 / 292

486 / 601

47 / 84

35 / 40

Presence of endangered species near plants/assets (GRI
304-4): knowledge of the potential presence of endangered species in the proximity of assets is important inorder to evaluate actions aimed at reducing the risk of interference by Enel assets. This type of mapping is carriedout for all infrastructures for which biodiversity projects aredeveloped that relate to flora and fauna species mapped in
the IUCN Red List. The summary of this mapping is presented in the following infographic table of biodiversity projects.

(24) To identify areas of high biodiversity importance, the following general criteria are considered: 1) Protected areas (UNESCO World Heritage Natural Sites
and IUCN I-IV); 2) Critical habitats as defined by IFC Performance Standard 6; 3) Presence of protected species, according to the methodology developed
and adapted by UNEP-WCMC, Conservation International and Fauna & Flora International (“Biodiversity indicators for site-based impacts”, 2020).
(25) The number of plants in areas of high biodiversity importance has been modified following the updating of thematic maps and the refinement of calculation
methodologies (e.g., for hydroelectric plants, plant auxiliaries have been merged with the generation island and related basins).
(26) “Baco” photovoltaic system built in Central America (Panama) found to be in an area of high biodiversity value due to the potential presence of protected
species, according to literature data.

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Performance 2023

5

Appendix• Critically Endangered (CR)• Endangered (EN)• Vulnerable (VU)
• Near Threatened (NT)• Least Concern (LC)NO. OF SPECIES ON THE IUCN RED
LIST

PROJECT TYPE
No. ofprojects Mandatory Voluntaryof whichResearch
Conservation
Restoration and other(species) Monitoring(habitats) purposes

Group

CR

EN

VU

NT

1

1

-

0%

-

-

-

1

Flora

-

-

-

-

Brazil

45

36

9

20%

10

22

12

1

Birds; Bats;
Terrestrial
fauna and
Flora

1

13

33

Chile

18

7

11

61%

2

8

3

5

Terrestrial
fauna and
flora

-

-

Colombia

20

12

8

40%

9

7

2

2

Birds; Bats;
Terrestrial
fauna andflora-

Guatemala

5

4

1

20%

-

5

-

-

Terrestrial
fauna

Iberia

45

13

32

71%

28

3

6

8

Italy

23

7

16

70%

17

3

3

Mexico

6

5

1

17%

-

6

Panama

1

-

1

100%

-

Peru

5

3

2

40%

Rest of the
world

14

5

9

183

93

90

Country

Argentina

Total

VOLUNTARYLC Total--

26 292

365

1

2

46

49

2

3

4

85

94

2

2

14

12

-

30

Birds; Bats;
Terrestrial
fauna and
flora

-

2

10

8

27

47

-

Birds; Bats;
Terrestrial
fauna; Plants;
Fish

2

14

14

-

15

45

-

-

Birds; Bats;
Terrestrial
fauna and
flora

-

-

3

2

77

82

1

-

-

Flora

-

-

-

-

-

-

-

5

-

-

Birds; Bats;
Terrestrial
fauna

-

-

-

-

24

24

64%

5

6

3

-

Flora;
Bats; Birds

-

5

3

2

59

69

49%

71

66

29

17

5

38

81

56 625805

Assessment of ecosystem services: among the approaches that have been developed for some years in the scientific community to fully describe the contribution provided
by biodiversity and nature, one relates to the optimizationof ecosystem services. In this area, Enel continues to de-velop studies to verify how this approach facilitates better
environmental management of its infrastructures in orderto maximize the benefits for the environment and for local
communities.

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The biodiversity action plan
In 2023, 183 projects were carried out to protect species
and natural habitats at operational plants, of which 57 weredeveloped in partnership with government agencies andnon-governmental organizations and universities, for a total investment of 10.8 million euros. The projects were carried out in all Countries and Regions and mainly concern
operational renewables plants and distribution networks.
The projects included habitat recovery activities covering
8,343 ha, most of which are related to ecological restoration and reforestation, mainly in Brazil, Chile, Colombia,
Italy and Spain.
In addition, in 2023 a further 60 projects relating to plant
construction sites were carried out, mainly in Brazil, Chile,
Colombia, Italy and Spain, targeted at the conservation and

183

8,343 haPROJECTS FOR
THE PROTECTION
OF SPECIES AND
NATURAL HABITATS IN
OPERATIONAL SITESAREA COVERED BY
NATURAL HABITATRESTORATION PROJECTS(related to projects carriedout in 2023)

monitoring of native species impacted, amounting to an
overall capital expenditure of 9 million euros.
Examples of measures to mitigate impacts on biodiversity,
by way of implementation of the relevant policy, are available in the sustainability section of the www.enel.com website at the following link: https://www.enel.com/investors/
sustainability/strategy-sustainable-progress/biodiversity.

Measures taken to reduce impacts
Enel has consolidated experience in managing and protecting biodiversity near its production sites starting fromthe site design and construction phases; particularly in thepast few years, activity has focused on managing impacts
near to renewable plants and distribution networks, in linewith the Group’s decarbonization strategy.
The Group’s internal Biodiversity Guidelines define theprinciples and procedures for managing impacts on biodiversity during the entire life cycle of plants, from thedevelopment phase to operation and decommissioning,
through the application of the Mitigation Hierarchy in thevarious phases of the life cycle. For the Group’s plants andinstallations that have been present in the local area fora long time, environmental protection and monitoring action plans are also adopted.
For the development of new infrastructures, the risk tobiodiversity is assessed in an integrated manner right fromthe feasibility phase, starting with the selection of the siteof interest, which involves an assessment of the type of
habitat, prioritizing habitats that do not present environmental criticalities, and considering geographical proximity to protected areas, habitats that are critical or important for biodiversity, as well as the potential presence ofendangered species in the area of interest. To support thedefinition of local action plans for the mitigation of any risk
identified, Enel adopts a consolidated process of stakeholder engagement, which involves continuous dialogue
in synergy with all stakeholders – local communities, competent authorities and research institutes – with a view
to supporting increasingly sustainable business for the
economy, nature and people.
In the construction of new plants, specific action plans arealso adopted to check the effectiveness of the actions undertaken and the occurrence of any potential impacts, including at a later stage after the works have started. For some154

Sustainability Report 2023

plants, the development of mitigation plans together withlocal stakeholders is also envisaged, including reforestation.
Once the infrastructure is commissioned, protectionof biodiversity becomes an integral part of environmental management, through periodical monitoring for the
checking of impacts highlighted in the authorization
phase, as well as the continuous assessment of potential
impacts that could occur later. This is also the moment
where the plant consolidates its relationship with the local
area and where initiatives are developed, such as voluntary projects to safeguard local species and improve habitat conditions, based on knowledge of the environment
surrounding the site. The results of monitoring at the local
level are communicated and analyzed at global level bymeans of internal tools, allowing the identification of general issues that need to be addressed with improvement
plans or projects at Group level.
The main impacts on biodiversity during operations linked
to technologies are:• wind plants: impacts related to collision with birds andbats. Among the various initiatives aimed at reducing
interference, a project has been developed in synergy
with the Group’s Innovation unit to monitor and assess
the performance of detection and deterrent systems
available on the market, in order to evaluate their implementation both in already operational plants and in
new projects under development;• hydroelectric plants: interference with fish and soil erosion. Among the initiatives, fish repopulation actions
for ecosystem and species recovery are highlighted,
such as the restoration or improvement of fry reproduction or growth areas. Furthermore, to control soil
stability and improve habitat conditions, native species
have been planted directly in the reservoir or near to its
banks, in addition to the implementation of programs

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3

Stakeholder engagement andmateriality analysis

to monitor erosion and degradation of the banks;solar plants: impacts related to the occupation andpossible transformation of habitats. To mitigate theirimpact, interventions are planned to improve habitat
conditions for the benefit of species present in the affected site. Also important to note is the increasing development of agrivoltaic plants, which provide spaces
between the rows of photovoltaic modules for planting
aromatic and medicinal herbs, food crops and nectar
flowers that promote the establishment of pollinatorspecies;
distribution networks: risk of collision and electrocution of birds with overhead lines. In this regard, startingfrom the design phase to the operation and mainte-

4

Performance 2023

5

Appendix

nance of existing sites, and according to the biodiversity aspects associated with the site, Enel adopts mitigation measures including the installation of collision
avoidance devices at regular intervals along overhead
power lines, as well as the isolation of live parts. To reduce the fragmentation of forest habitats caused by
distribution networks, and mitigate their impact on
fauna, interventions involving the installation of pathways for arboreal fauna have also been created, suchas for example, aerial crossings for monkeys in Brazil(São Paulo). Additionally, actions are taken to mitigate
the impacts during the construction phase, including
the relocation of terrestrial flora and fauna to protectedareas.

INSTALLATION OF COLLISIONAVOIDANCE DEVICESCOLOMBIA

The main objective of the project, developed as partof Modernization works on the two high voltage linesof Muña-Sauces and Zipaquirá-Ubaté in Colombia(Cundinamarca region), is to reduce the impacts
deriving from birds colliding with power lines.
In particular, a total of approximately 240 collision
avoidance devices were installed with an average
spacing of 15 meters and located in natural habitats,sites of naturalistic interest and wetlands.
The sections of line to be fitted with collision
avoidance devices were identified by field monitoring
based on direct sightings, indirect observation in
the habitats surrounding the lines, identification of
species based on birdsong, and nest searches. The
monitoring carried out in the case of the MuñaSauces site led to the identification of more than
140 bird species that were potentially impacted bycollision with power lines, and almost 1,400 individuals
detected using the transect or net capture method.
In the case of the Zipaquirá-Ubaté site, more than 50
bird species were identified.

CONSERVATION OF BIRD SPECIES> 140

BIRD SPECIES IDENTIFIED

around 240

COLLISION AVOIDANCE DEVICESINSTALLED

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PROYECTO UROGALLOSPAINIn recent years, populations of capercaillie (Tetrao
urogallus, Urogallo in Spanish), a large bird linked toforest habitats, where it settles and nests, have suffereda sharp decline in many European countries. This decline
has also occurred in Spain, specifically the regions ofCatalonia and, more precisely, the central Pyrenees(2000-2016, Estudio Declive poblacional del Urogallo en
los Pirineos Centrales - Fundacion para la Conservaciondel Quebrantahuesos y Universidad de Valencia). The
Pyrenean subspecies (Tetrao urogallus aquitanicus)
is listed in the “Vulnerable” category of the Spanish
catalogue of species threatened with extinction due toits sharp population decline over the last two decades.
The risk of collision with overhead power lines is
one of the main threats that are causing a reductionin the population, in addition to pressures linked

to unsustainable forest management, an excessive
increase in medium-sized predators and wild
herbivores (deer and fallow deer), and high tourist
footfall in forest areas.
It is within this context that the “Project for capercaillie
conservation in the Pyrenees” was launched, involving
a partnership between Edistribución, Paisatges Vius
(an NGO) and the Department of Biodiversity of
Catalonia. In particular, the involvement of Edistribución
resulted in the identification of the main sections ofcritical MV lines within the Alt Pirineu Natural Park, andthe subsequent installation, using drones, of collision
avoidance warning lights. Edistribución is also involvedin awareness-raising actions to protect the species,
by monitoring and communicating the main results
achieved by the project.

SAFEGUARDING AND
TRANSFER OF
EPIPHYTIC SPECIESCOLOMBIAThis project in Colombia, implemented as part of
the reconstruction of the existing Zipaquirá-Ubaté
transmission line, is a specific example of how
environmental protection is being applied in areas
with potentially high biodiversity value. In particular, 27
plant specimens (epiphytes) subject to direct impact
from construction sites have been safeguarded, withthe aim of reducing impacts on plant species ofconservation interest.

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Sustainability Report 2023

Of the 27 specimens safeguarded, 20 belong to theorchidaceae family and 7 to the bromeliaceae family.
Specifically, the action involved mapping specimens
and subsequently relocating them to favorable areasthat are similar to the species’ original environment.
Furthermore, periodic monitoring and maintenanceactivities are planned for the three years following therelocation, to improve the survival rate of the species.

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Appendix

INSTALLATION OF
ARTIFICIAL NESTS FORMARKHAM’S STORM PETRELCHILE
In 2021 Enel Chile launched an important biodiversity
project in the Atacama desert to install artificial
nests for Markham’s storm petrels, an endangered
species according to national legislation and listed as
threatened in the IUCN Red List.
Markham’s storm petrel (Hydrobates markhami) is asmall bird that inhabits the open ocean for most of
its life. It is a long-lived species, sensitive to climate
alterations during the reproduction and conservationof its eggs, of which it lays only one per season. Four
species breed in northern Chile, between the regionsof Arica and Parinacota and northern Coquimbo.
In recent years, the increase in the development ofmining and energy projects in breeding sites has
posed an increasing threat to the conservation of thisspecies, sometimes causing the destruction of its
nesting habitat. Enel, in collaboration with the Chilean
network of bird and wildlife observatories (ROC), hasdeveloped a project dedicated to creating artificial
nests to promote the reproduction of the species;
furthermore, in 2022 the Company completed a study
on the reproduction of Markham’s storm petrels
in the Atacama desert and analyzed international
experiences on the use of artificial nests for the birds’
reproduction. Subsequently, during 2023, nests
were created and installed, measures (acoustic andolfactory) were implemented to attract specimens
and monitoring campaigns were carried out, during
which footprints of Markham’s storm petrels were
found near to three artificial nests.

CONSERVATION ANDREPOPULATION OF
MARBLE TROUT IN
BERGAMO WATERS
ITALY

Enel is also committed to ensuring river connectivity
in order to protect the species. There are many
repopulation projects developed in aquatic
ecosystems. In particular, a project was launched in
Italy during 2023, aimed at conserving marble trout
in the Brembo river, which is affected by hydroelectric
power generation at Enel Produzione Italia plants.

2

Bilancio di Sostenibiltà 2023

The project involves monitoring campaigns on
the species with a view to selecting specimens forthe artificial reproduction phase, which starts withincubation and proceeds to egg hatching, rearing andgrowing the fry in tanks and finally releasing the adultfish into the Serio river basin.

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Biodiversity opportunities
Integration of nature-based solutions into
Enel X Global Retail
During 2023 Enel X Global Retail worked to promote an
integrated approach wherein the services and products
in its commercial offering are combined with Nature
Based Solutions (NBS), namely the set of techniques anddesign approaches that use nature and the processes
inspired by it to provide integrated services aimed at increasing the resilience of the city and territory to climatechange, mitigating the microclimate, air quality and generally improving quality of life. This opportunity interests
both industrial customers and public administrations,and therefore involves both urban and extra-urban spaces, based on a philosophy of approaching sustainable
development challenges inspired and supported by nature.

In order to promote NBS, Enel X Global Retail has developed the Enel X NBS Biodiversity Handbook and the EnelX Urban Biodiversity Scoring Model, which respectively make it possible to identify NBS solutions that can beassociated with the different business solutions of Enel
X Global Retail and then to evaluate the positive impacts
generated across the three dimensions of climate, natural
resources and human experience.
The model created enables the evaluation and promotionof the integration of nature-based solutions in both B2B
and B2G projects. Additionally, it aims to assist customers
in evaluating their nature-related performance, guidingthem in the adoption of integrated solutions.

“1ÁRBOL = 1BUS” CAMPAIGN
CHILEIn Chile, as part of World Environment Day, the EnelX forest was inaugurated in partnership with theReforestemos Foundation. The initiative involves
planting native trees in degraded territories affectedby forest loss. The project involved the various
Business Lines with a view to raising awareness about
the importance of forests and the need to restore
and protect them. Specifically, together with theReforestemos Foundation, the initiative “1+1, a tree forevery electric bus” was developed, which resulted in
the planting of 1,540 native specimens in the forests ofsouthern Chile, equivalent to the number of buses on
the streets of Santiago at the end of 2023. This project
brought about an estimated reduction in atmosphericemissions of approximately 540 tonnes of CO2eq(27).

1,540

NATIVE SPECIMENS PLANTEDIN THE FORESTS OF SOUTHERN
CHILE
EQUIVALENT TO THE BUSES DRIVENON THE STREETS OF SANTIAGO
AT THE END OF 2023

(27) Value estimated according to the methodology used by Fundacion Reforestemos.
(27) Value estimated according to the methodology used by Fundacion Reforestemos.

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Agrivoltaics: from research
to large-scale implementation
The construction of agrivoltaic systems is a concrete example of integration between business needs and nature.
In 2021 Enel Green Power launched several pilot projects in
Spain, Greece and Australia, together with local stakeholders and strategic partners, to evaluate the feasibility andsynergistic effects of integrating agrozootechnical activities
and utility-scale ground-mounted photovoltaic systems. The
results were particularly interesting, including an increase inagricultural yield from 20 to 60% and a decrease in water
consumption for irrigation from 15 to 20%, thanks to the improvement of microclimate conditions, and the reduction ofthermal stress, especially during the summer months (evaluated over an observation period of 2-3 harvest cycles).
In 2023 Enel Green Power launched an important initiative
in Italy, involving universities, cutting-edge research centers,
startups and agricultural businesses, which saw the launch offour “Agrivoltaic Open Labs”, which are full-fledged open-air
laboratories for testing innovative technologies, both photovoltaic and those integrating sustainable agricultural activities, and promoting the conservation of biodiversity and4

Performance 2023

5

AppendixColfiorito (PG)
Bastardo (PG)

Portici (NA)
Salaparuta (TP)the improvement of ecosystem services. Indeed, throughthe implementation of specific habitats to host colonies ofpollinators, as well the adoption of sustainable practices for
management of crop cutting, the initiative is improving theliving conditions of species threatened by climate change.
Following results obtained from the pilot plants, Enel GreenPower started construction on three sites of agrivoltaic
plants in Italy, of which one, the largest in Italy, located in
Tarquinia, outputs approximately 167 MW, while the othertwo sites are still under construction and have a total capacity of approximately 70 MW.

AGRIVOLTAIC OPEN LAB
ITALYIn the Agrivoltaic Open Labs of Bastardo (Umbria),
several tests have been started on a ground-mounted
solar plant of approximately 1 MW, consisting of fixed
structures equipped with bifacial modules.
1. Planting aromatic species (thyme, sage androsemary) between the rows of photovoltaic
modules and in a control area, to evaluate
their synergistic effects on power generation,
agricultural yield and water saving.
2. Installing hives for the production of “solar honey” andeducational activities aimed at young beekeepers andraising awareness among school children and families.
3. Testing natural solutions to restore and revitalize
soils, using combinations of plants (alfalfa, sainfoin,
fenugreek, chicory) to protect the soil from
erosion, improve water absorption and protect
microbial communities.

4. Monitoring said solutions by means of solar,
agronomic, environmental and biodiversity
sensors, to monitor the health of pollinatorcolonies.

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Responsible use of water
3-3

303-1

303-2

303-3

The responsible use and conservation of water resources
are fundamental guarantees for the protection of natural
habitats and for the wellbeing of the communities that,together with Enel, benefit from the ecosystem services
provided by these resources.
The preliminary analysis of environmental risks and opportunities, particularly highlighted the materiality, for someelectricity generation technologies, of impacts linked tothe use of water resources, above all fresh water and particularly in areas with high water stress, where competition
between natural and human needs is greatest. Specifically,
the main impacts are above all linked to water withdrawals
for thermoelectric and nuclear generation, mostly for thecooling of thermal cycles and for operating atmospheric emission abatement systems. In these plants, overallwater requirements for industrial purposes are covered,
where available, through withdrawals from so-called “nonscarce” sources (mainly including sea water, which is usedas-is in open cycle cooling processes and subjected todesalination to obtain industrial water) and, where necessary, from “scarce” sources, represented by surface water,
groundwater and potable water. To minimize these withdrawals, in addition to maximize the recovery of internal
wastewater, Enel uses, where available, treated wastewatersupplied by water management consortia.

The main dependencies are instead attributable – in addition to the needs of thermal plants – to hydroelectric
plants, which depend for their operation on the water cycle which, through rainfall and melted snow, constantly
replenishes surface watercourses.
Risk analysis related to water also took into account possible scenarios involving changes to the relevant regulatory framework and the future availability of the resource. Regarding the first aspect, the active role played
by Enel in the development and application of national
and international reference environmental standards
allows the Company to avoid possible misalignments
or violations by adopting improvement actions inspiredby the best available techniques. Regarding the second
aspect, through the development of medium and longterm meteorological and climatic scenarios, especiallythose linked to the effects of climate change – such as
the onset of chronic precipitation variability or of waters
temperature rise – the change in availability and expected
quality of the water resource in basins of interest to theGroup was assessed. Producibility maps for Enel plants
highlighted that, on average, no significant changes are
expected for the period 2030-2050 compared with available historical data.

Efficient use of water resources
In 2023 the total withdrawal of process and closed-cycle cooling water(28) was approximately 55.0 x103 ML, asignificant reduction (-28%) compared with 2022 data
(76.0 x103 ML) due to the reduction in thermoelectricand nuclear power generation, and particularly that ofcoal plants called into production in recent years to agreater extent in response to the international energy
contingency. As regards specific water requirements(29),in 2023 it was 0.23 l/kWh, slightly down on 2022(30) (0.27l/kWh), again thanks to the reduced use of conventional thermal plants and the increase in power generationfrom renewable sources.

(28) The waters used for open cycle cooling are reported separately among the environmental indicators. They are not taken into consideration here in assessing the efficient use of the water resource, as they are returned in full to the natural receptors, without substantial changes in quality, apart from a slight increase in temperature, subject to authorization and continuous control in order to guarantee the absence of measurable impacts on exposed ecosystems.
(29) The water requirement is constituted by all the water withdrawal quotas from surface (including recovered rainwater) and groundwater sources, by third
parties, from the sea and from wastewater (quota supplied by third parties) used for process needs and for closed-cycle cooling, except the quota of seawater discharged back into sea after the desalination process (brine). This latter item (brine) contributes to the total quota of withdrawals.
(30) Value also recalculated to take into account the reclassification of the cooling cycles of some nuclear power plants in Spain.

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WATER WITHDRAWAL BY SOURCE

0.3%

8.1%

Surface waterSea water
Ground water
Water from third parties

14.6%

Wastewater

55 x103
megaliters

52.3%

24.7%

Enel is constantly committed to progressively reducing
the specific water requirement for its plants and assets,through the efficient use of water in existing thermal
plants, the evolution of the energy mix towards renewables, and the progressive reduction of generation fromfossil fuels. Among the efficiency measures, particularattention is paid to maximizing the recovery of processwastewater from treatment plants and to increase theefficiency of cooling systems and evaporative towers, by
upgrading control systems and blowdown recovery. Other important optimization interventions in thermoelectric
plants concerned the use of crystallizers(31), a technologythat allows the complete reuse of wastewater in the pro-duction cycle, eliminating related discharges (ZLD – Zero
Liquid Discharge plants). Finally, great importance is given
to the reuse of rainwater collected in plant areas, whichcannot be returned as-is to natural receptors as it is potentially contaminated by contact with industrial areas.
This water is stored in special storage tanks and reused in
the generation processes, thus further helping to reduce
the environmental footprint of generation sites.
Efficiency interventions in the use of water also make itpossible to minimize water discharges as well as total
consumption, which in 2023 were respectively 19.5 x103
ML (-37%, 30.8 x103 ML in 2022) and 35.4 x103 ML (-22%,45.2 x103 ML in 2022).

The target for reducing specific fresh water withdrawal
and the focus on water-stressed areas
Starting last year, Enel renewed and relaunched its commitment to preserving water resources, adopting the target of a 65% reduction in specific withdrawal of fresh water by 2030 compared with the base year 2017.
By directing attention to the most valuable and vulnerable water resource, Enel’s objective demonstrates its evenmore explicit commitment to the protection of natural
habitats and to the needs of local communities, also taking into account recent EU regulatory developments inthe field of sustainability reporting (EU standard ESRS-E3“Water and Marine Resources”) and the results of the risk
and priority analysis conducted at Group level.
The commitment is pursued through the definition, at

Group level, of common strategies and specific objectives, which are implemented locally through the adoptionof Environmental Management Systems on all assets forwhich the resource is material, as well as through water
management plans for hydroelectric plants combinedwith continuous improvement programs shared with local stakeholders (basin authorities, local administrations,control bodies, citizens’ committees and NGOs). The measures of impact mitigation and improvement, defined in
the management plans, aim to the guarantee of minimum
vital flow and the protection of habitats (see the specificwebsites of the Environmental Authorities of the various
countries where the Group is present).

(31) Crystallizers or SEC (softening, evaporation and crystallization) systems. Technology applied in Italy in coal-fired power plants.

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During 2023, a total of 40.6 x103 ML of fresh water was
withdrawn for process and closed-loop cooling uses, asignificant decrease (-23%) compared with 2022 (52.7x103 ML), with the specific fresh water withdrawal value
at Group level standing at 0.20 l/kWh (13% down on lastyear’s value of 0.23 l/kWh), as a consequence of the reduced thermoelectric and nuclear generation.

SPECIFIC FRESH WATER WITHDRAWAL (l/kWh)

0.43

0.20

2017

2023

-65%
vs 2017

0.18

2026

0.15

2030 target

Enel also pays particular attention to the vulnerability of theresource, by mapping and constantly monitoring all generation sites located in areas classified as water-stressed
areas. Mapping of generation, thermal, nuclear and renewable sites falling within water-stressed areas is carriedout in line with the criteria of GRI 303 (2018) with reference
to the conditions of “(baseline) Water Stress” indicated by
the World Resources Institute Aqueduct Water Risk Atlas(32). Among the sites mapped, those defined as “critical”
are those positioned in water-stressed areas and which
procure significant volumes(33) of fresh water. For thesesites, which are mainly thermoelectric and nuclear plantsthat use water resources for process and closed-cycle

cooling needs, water management methods and process
performance are constantly monitored, in order to minimize consumption and favor withdrawals from sources oflower quality or which are non-scarce (wastewater, industrial or sea water).
Fresh water withdrawals in water-stressed areas, whichin 2023 amounted to 10.3 x103 ML, are also decreasing(-17%) compared with 2022 (12.4 x103 ML), although to aless marked extent than the overall withdrawal value (-23%),due to optimization initiatives already adopted in these areas. Consequently, the percentage of water withdrawn inwater-stressed areas was 23% of total withdrawals in 2023
and slightly up on the previous year (19% in 2022).
The specific withdrawal of fresh water in water-stressed
areas was 0.10 l/kWh in 2023, which was however slightly lower than the previous year (0.12 l/kWh in 2022) andin general significantly lower than the total Group value
reported above (0.20 l/kWh), underlining the Company’s
priority commitment to adopting, in water-stressed areas,
renewable technologies (solar and wind) that do not require significant quantities of fresh water or, in the caseof thermoelectric plants, sea water desalination technologies(34).
Also in the case of solar plants located in water-stressed
areas, although the volumes are insignificant, Enel adopts
innovative solutions aimed at drastically reducing local
water consumption used for the periodic cleaning of photovoltaic panels.
More generally, since 2020 Enel has been implementing
the WaVE (Water Value Enhancement) project in orderto reduce the use of water resources in all thermoelectric and renewable power generation sites, particularly inwater-stressed areas. The project continued in 2023, refining the mapping of assets and focusing on the effects
that climate change may have on the availability of water
resources.

(32) GRI 303 defines “water stressed” areas as those in which, based on the classification provided by the WRI Aqueduct Water Risk Atlas, the ratio, referred toas “baseline water stress”, between total annual surface and groundwater withdrawals for different uses (civil, industrial, agricultural and livestock) and therenewable water supply available annually is high (40-80%) or extremely high (>80%). By way of greater environmental protection, those plants located inareas classified by the WRI as “arid” due to the unavailability of water are also considered as located in water stressed areas.
(33) Plants with withdrawals greater than 100 m3/year are included.
(34) The quantities of fresh water withdrawn and the energy generated in water-stressed areas are calculated taking into consideration both thermoelectricand renewable plants located in these areas. In the case of renewable plants managed in geographical clusters that include areas with different levels ofwater stress, the estimates of the previous quantities were made in proportion to their generation capacity.

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WaVE PROJECTREDUCING THE USE OF SURFACE FRESH
WATER IN ITALY
The La Casella power plant, one of the largest
combined cycle units in Italy and fundamental for
ensuring the production continuity during thetransition towards renewable generation, recently saw
the revamping of its integrated water management
system. The system, stocked with fresh water
withdrawn from the river Po at the time the plant
was built, had become obsolete and unreliable, withpotential repercussions on the availability of thepower generation units. The intervention completely
renewed the demineralized water production process,by implementing a more advanced technology

REDUCTION OF WATER USAGE
IN IBERIA
The Barranco de Tirajana plant located in the CanaryIslands, a water-stressed area, has implemented
a series of plant modifications and optimizations
that enable it to recover and reuse water used inso-called storage phases, rather than discharging it

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Appendix

based on reverse osmosis whilst at the same timecarrying out various modernization interventions inthe sections dedicated to production of industrial
water and wastewater treatment. The project’s key
objectives include the creation of efficient andautomated systems, with optimal standards of safety
and respect for the environment, which eliminate
the risk of unavailability. Furthermore, the initiative isenvisaged to bring about a significant reduction in the
consumption of demineralized water, and therefore
in the withdrawal of fresh water from the river, with aconsequent positive impact on the water resource,
through the recovery of steam generator blowdowns
and the reuse of rainwater and wastewater. The
project is expected to reduce the plant’s needs forwater from the river Po by up to 70%. Other tangible
benefits include a significant reduction in water
discharged after treatment and a notable reductionin the consumption of chemical reagents and sludge
generated by wastewater treatment processes,
further improving the efficiency and sustainability ofthe power generation plant.

and producing it again when needed. This delivers
numerous advantages, including greater operational
flexibility, which in turn reduces production restart
times. Furthermore, significant water savings areachieved, with a reduction of approximately 50%
in the quantity of water required for storage,
considering the plant’s typical current work cycle.

Responsible and integrated managementof water catchment areas
The operation of hydroelectric power plants is an important element of water management. The materiality
analysis recognizes to this technology significant impacts
on the transformation of terrestrial and aquatic habitats
during the construction and initial operation phases ofthe plants. However, almost all of the Group’s hydroelectric power plants are now several decades old and in the
period since their construction, the surrounding habitats
have had the opportunity to fully regain their equilibrium,enhanced by the very presence of the water basins, to thepoint of becoming protected natural areas in many cases.
These power plants, which do not contribute to the Group’s
water consumption since the water withdrawn is completely returned to its source, further provide a series ofadditional services for the community that extend beyond
the sole generation of renewable energies. Most of power

plants, jointly run by government with public and private
stakeholders, manages the water resource for multi-purpose services ranging from flood control, drinking waterand irrigation and firefighting services, to the management of river waste held by artificial dams, also including
numerous cultural, leisure and nature-based initiatives,
made possible thanks to the presence of the power plants.
The reservoirs of hydroelectric plants also carry out a vital role in the response to the effects of climate change,
increasing the level of protection of the communities
subject to increasingly frequent severe flooding and to
prolonged periods of drought. Management of the outflows from hydroelectric plants is done through specificprograms to ensure the volumes of water required to preserve the ecological state of rivers (minimum vital waterflows).

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Preventing pollution
Enel is committed to the continuous application of themost advanced technologies available and best practices
in order to minimize the possible impacts deriving fromits activities on environmental matrices, such as air, water and soil, using international standards as a benchmark
even where the environmental protection requirements oflocal legislation are less stringent. These protection principles are made effective through the definition of quantitative objectives and operational plans applied to all of theCompany’s production and service sites and infrastructures, from the design and construction phases throughto operation and end-of-life repurposing.

Actions to reduce pollution in the atmosphere
3-3

305-7

The constant commitment to improving air quality in theareas where Enel operates is demonstrated by the carepaid to reducing the main atmospheric pollutants associated with thermal generation: sulfur oxides (SO2), nitrogenoxides (NOx), and particulate matter (PM).
For years, the Group has set itself important objectives toreduce specific emissions of pollutants emitted into theatmosphere. In line with the SBTi certification process withrespect to the Group’s GHG emissions and the revisionof the baseline to 2017 carried out last year to take into
account the deconsolidations of assets as at December
31, 2022, the target values for pollutant emissions into theatmosphere by 2030 are:

OBJECTIVE OF REDUCING MAIN EMISSIONS(vs 2017 base year)

TARGET
2030

DUSTS

-60%

0.005 g/kWheq

SO2

-85%

0.05 g/kWheq

In addition to these, the target of reducing mercury (Hg)emissions from coal-fired thermoelectric plants by 100%
compared with the year of reference has been introduced
since last year(35). Pollutant reduction trends and targets are
consistent with the Strategic Plan and with the Group’s decarbonization objective.
Emission measurements are carried out in compliance witheach country’s regulatory framework and, in the majority oflarge plants, a measurement system is used that can assess compliance with the limits in real time. Its reliability is
guaranteed by accredited certifying entities and throughassessments carried out by inspection authorities.
In 2023, NOx emissions amounted to 0.26 g/kWheq, a reduction in both absolute and specific terms (-19% compared with the 2022 value of 0.32 g/kWheq), due to the

NOX

-70%

0.16 g/kWheq

concomitant lower overall production of gas and CCGT
combined cycle plants. In particular, the specific emissionof NOx in 2023 is lower than the intermediate target set
for 2026, as this latter forecast data takes into accountpessimistic scenarios, including a potential fluctuation inhydroelectric power generation.
By contrast, emissions of SO2 and particulate matter increased compared with last year, as a consequence ofthe higher coal-based production in Colombia, owing to
specific production needs as a result of intense drought
phenomena linked to El Niño, which significantly alteredrainfall distribution. In particular, specific emissions of SO2
were 0.09 g/kWheq (29% compared with the 2022 value of
0.07 g/kWheq), and PM emissions totaled 0.006 g/kWheq(20% compared with the 2022 value of 0.005 g/kWheq).

(35) The target refers to the countries for which this measure is prescribed and therefore includes Italy, Spain and Chile, whereas Colombia is excluded. The
baseline value of 387 kg of Hg, referred to the year 2017, was calculated net of corporate deconsolidations as at December 31, 2022.

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For mercury emissions from coal-fired plants, the value
for the year 2023 was 44 kg of Hg, down 41% comparedwith 2022 (75 kg). For these emissions – which have also
always been subject to constant monitoring and reduction in all plants of the coal-fired thermoelectric park fleet
through the adoption of the best available and techno-

logically applicable abatement techniques – as previously
stated, the target value of 0 kg of Hg (-100%) by 2030 is set,in line with the expected closure of all coal-fired plants by
2030, whereas the value set for 2026 is 3 kg of Hg (-99%
compared with 2017).

NOX (g/kWh)

SO2 (g/kWh)

0.55

0.26

0.27

-70%
vs 2017

0.36-85%
vs 2017

0.16

2017

2023

2026

2030 target

2017

0.09

0.07

0.05

2023

2026

2030 target

PARTICULATE MATTER (g/kWh)-60%
vs 2017

0.013
2017

0.006

0.006

0.005

2023

2026

2030 target

Actions to reduce the impact of liquid waste
The paragraph “Responsible use of water” presents Enel’scommitment to minimizing the discharge of wastewaterfrom plants into surface water bodies, downstream of internal recovery and reuse actions. Discharge, in plants not
equipped with zero liquid discharge (ZLD) systems, always
takes place downstream of a treatment process that removes any pollutants present to concentration levels thatwill not have negative impacts on the receiving water bodies, as verified by sampling and analysis plans and in com-pliance with the limits and requirements established by national regulations and operating permits.
The potentially polluting substances present in discharges
mainly consist of metallic species (Fe, Al, Si, Ca, Mg) present
in solution or, to a lesser extent, suspended solids. However, there are no pesticides or substances classified as hazardous, while insignificant quantities of nitrates and phosphates might be present, linked to thermal power generation rather than to the use of chemical substances(36).

(36) The materiality indicated in the paragraph “Impact factors” for hydroelectric and nuclear technologies in relation to the item “Water pollution” refers instead
to possible alteration in the quality of the resource resulting, respectively, from phenomena of anaerobic decomposition and/or eutrophication inside thebasins in the case of hydroelectric plants, and from the temperature of cooling water in the case of nuclear plants. In both cases, therefore, there is no
direct emission of priority polluting substances (based on the E-PRTR Regulation) by the plants.

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Actions to protect the soil, subsoil and groundwater
3-3
Enel pays the utmost attention to the protection, monitoring and remediation of soil, subsoil and groundwaterin the areas where power generation and service facilities are present in all countries.
The protection of environmental matrices guides every
phase of each asset’s life, from design choices to construction, operation and end-of-life management. Bothactive and passive protection and safety measures areused in the design phase to prevent and, in any case,minimize the risk of uncontrolled or accidental contact ofpotentially polluting substances (such as fuels, reagents,
liquid and waste flows) with soils and subterranean waters.
During plant operations, every process undergoes compliance controls as well as ongoing upgrades as requiredby the Environmental Management Systems to preventand minimize the risks of any potential environmental
contamination. At the same time, control plans are executed to monitor the condition of the previous environmental matrices. In the event of an accident, for example
the accidental spillage of polluting substances, the timely
application of the Stop Work and Emergency Management Policies makes it possible to prevent or minimize
the risk of environmental impacts, rigorously complying
with the provisions and the legal obligations of the various countries.
For the end-of-life management of power plants, once
they have been secured and prior to being dismantled
and the area reassigned for new development projects,
Enel proceeds to verify further the environmental qualityof the soil, subsoil and groundwater in the areas where
the plant is located, according to the authorized provisions and legal requirements of the various countries. In

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case of potential contamination events, characterizationof the environmental matrices in the areas potentially affected and, if necessary, implementation of safetymeasures and subsequent remediation, are executed
according to intervention plans shared with the competent authorities and by resorting to specialist, qualified
companies that are able to promptly restore the level ofquality suitable for the intended use of the area (industrial, commercial, residential etc.). Particular focus is on
power plants falling within large industrial hubs.
In order to optimally implement the principles of sustainability also in soil and groundwater management, while
optimizing the environmental, social and economic valueof the sites, Enel Green Power has implemented dedicated Guidelines (“Sustainable Remediation”) focused on
remediation projects.
The guidelines describe and include tools useful for the
analysis and preliminary selection of remediation technology(s) to be applied in contaminated sites and provides support towards the technology comparison process.
The main drivers of the sustainable remediation modelare:• the protection of human health and the environment;• the promotion of “in situ” interventions which avoid
the production of waste and the need for road transport;• a strong focus on the recovery and reuse of remediated soil and groundwater, reducing their impact on
existing ecosystems;• the reduction of atmospheric emissions by minimizing
the use of energy and maximizing the application ofrenewable energy sources.

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Appendix(37)

CONSERVATION AND
PROTECTION OF HABITATSAND NATIVE SPECIESCHILEBiodiversity protection is also a prerogative in thesustainable management of plant closure anddecommissioning phases. One example is Tarapacá
thermoelectric power plant (Chile), where the coalfired unit was closed in 2019 and the preparation
phase for the definitive demolition of the plantis currently under way following receipt of all thenecessary authorizations.
The plant is located near a Priority Site for Biodiversity(Punta Patache, Iquique, Región de Tarapacá),particularly with regard to seabirds; hence, during
the environmental assessment of the closure phase,the nesting sites of Peruvian tern species (Sternula
lorata, categorized as endangered by the International
Union for Conservation of Nature (IUCN)) wereconsidered as sensitive receptors in order to prevent
any physiological or behavioral effects resulting fromthe increased noise levels; therefore, for preventive
purposes, these nesting sites have been mapped andexcluded from any work or activities associated withthe demolition project.

STERNULA LORATA

Also detected in the vicinity of the plant was thepresence of Markham’s storm petrels (Hydrobates
markhami, classified as endangered by national
legislation), a species heavily affected by light
pollution. For this reason, the decommissioning
project considers the use of safe lighting for the
species as a mitigation measure, based on the main
recommendations contained in the guide “Diagnosis
and guidelines to mitigate the effects of light pollution
on seabirds of Chile(37)”, such as:• use suitable lighting fixtures to avoid dazzling thebirds (prefer warm lights to cold lights, choose
fixtures with protections or hoods);• direct lights towards the ground and position themas low as possible;• limit the use of lighting equipment to that which isstrictly necessary.
Tarapacá power plant has an Emergency Plan for the
management and rescue of Markham’s storm petrels,
which involves collecting and caring for specimensthat may be attracted to lights or other objects,
and, in emergencies, transferring them to a Wildlife
Recovery and Rehabilitation Center accredited by
the Environmental Authority for clinical assistance,
marking and release of the specimen.

HYDROBATES MARKHAMI(37) See: redobservadores.cl/wp-content/uploads/2022/06/Guia-iluminacion-amigable_fi
nal.pdf.
redobservadores.cl/wp-content/uploads/2022/06/Guia-iluminacion-amigable_final.pdf.

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Waste management
3-3

306-1

306-2

306-3

Optimal waste management is a strategic objective ofEnel’s environmental policy, which results in a constantcommitment to reducing waste generation, as well as toconstantly devising new methods of reusing, recycling andrecovering waste in the perspective of a circular economy
of resources, in line with the principles indicated by the

new community standard ESRS E5 “Resource use and circular economy”. These principles are further strengthened
and integrated into Enel’s operations in the Group Guidelines for Waste Management, which Enel has adopted inorder to collect and share best management practices
and rules developed within the Company.

The target of reducing waste fromoperational and maintenance activities
For several years, Enel has been pursuing an important target of reducing waste produced by direct, operational andmaintenance (O&M – Operation and Maintenance) activities carried out on its plants. The ongoing energy transition and Enel’s strategic decision to progressively close
its coal-fired thermal plants ahead of schedule by 2027
have already in recent years led to a drastic reduction in
the quantities of waste produced by these plants, which
once accounted for the majority of the Group’s internal
production. It is therefore envisaged that the production– and subsequent disposal – of ash from coal and gypsum
from desulfurization will go to zero.
Starting last year, the target of reducing waste production
has been extended to a part of the value chain, namely
O&M waste produced by contractors who, operating on
behalf of Enel, generate waste which they manage under
their own responsibility as producers, in compliance withapplicable laws, authorizations and mandatory qualification and management compliance criteria regularly verified by Enel as the contracting company. These mostly
consist of excavated earth and rocks and inert materials
from civil and road construction and demolition, which
in some main countries, including Italy, are classified andmanaged as waste and entirely destined for recovery.
This new adjustment of the target incorporates the principles of extended responsibility of the waste producer, as
recommended by the recent EU standard ESRS E5 “Resource use and circular economy”. It also makes it possible
to highlight, in the context of the ongoing energy transition, the growing role within the Company of the manage-

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ment of electricity distribution networks, service networks(for example, public lighting networks) and renewables
plants.
The target commits the Company to a 55% reduction in
waste produced by direct and contracted O&M activities
in 2030 compared with the base year 2017.

WASTE PRODUCTION FROMO&M ACTIVITIES (Mt)
6.7
-55%
vs 2017

2017

3.3

3.0

2023

2030 target

Waste produced in 2023 amounted to 3.3 Mt (-51%
down on 2017), a moderate decrease compared with
2022 (3.4 Mt), as a consequence of the reduced output
of coal-fired thermoelectric plants.

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WASTE PRODUCED BY O&M ACTIVITIESInert construction and demolition waste

1.8%
2.0%
1.2%

5.6%

Excavated earth and rocks
Coal ashGypsum and sludge from desulfurization

20.2%

Industrial waste
Waste equivalent to urban waste

3.3 MtOther waste

36.3%

32.9%

The vast majority of waste produced (98%) is classified
as non-hazardous, mainly consisting of inert waste fromconstruction and demolition, coal ash and excavated earth
and rocks. In particular, production of coal ash desulfurization and gypsum was respectively 0.66 Mt in 2023 (-35%vs 2022) and 0.08 Mt (-29% vs 2022).
Hazardous waste amounted to a significantly smaller portion (0.07 Mt) of total waste produced, equal to 2%, which
was slightly up on 2022 (0.06 Mt) as a consequence of
non-routine maintenance interventions.
A significant portion of this waste (0.02 Mt, corresponding
to 29% of total hazardous waste) is represented by “TSDsludges” (TSD denotes DeSOx plant blowdown treatment),
produced by the pre-washing of combustion fumes incoal-fired thermoelectric plants, aimed at subsequently obtaining, in the desulfurization tower, gypsums thatcomply with standards for their reuse in the constructionindustry. Enel, for precautionary reasons and standardized
management, has decided to classify these sludges as
hazardous by origin, sending them to landfill. The quantityof sludges produced is therefore linked to the operation ofcoal plants. In 2022, the year in which coal-fired electricity
production in Europe increased by approximately 7 TWhcompared with 2021 owing to the geopolitical context andfollowing various meteorological factors, sludges production increased by over 9,000 t compared with the previous
year (in 2021 it was 10,300 t). In 2023 there was a slightdecrease in sludges production of approximately 1,000 t
compared with 2022. Furthermore, the gradual planned
phase-out of coal plants over the next few years will allow
the quantities of said sludges to be progressively reduced.
A second important category of hazardous waste is ‘industrial waste’, which in 2023 amounted to 0.03 Mt, equal
to 43% of total hazardous waste. This waste is essentiallyend-of-life equipment, originating mainly from the maintenance and renewal of power grids and which is almost

entirely sent for recovery (78%).
The remaining portion (0.02 Mt, equal to 28%) mainly consists of oils, as well as earth and rocks that are classified ashazardous.
The total quantity of hazardous waste sent for disposal in2023 was 0.036 Mt, which is substantially similar to 2022
(0.034 Mt), and mainly the result of non-routine maintenance of some thermoelectric plants and modernizationof power grids.
The overall percentage of O&M waste, both hazardousand non-hazardous, sent for recovery totaled 85%. The
commitment to a continuous increase in the percentage
of waste recovered is essential for an effective transition
towards a circular economy that minimizes the exploitationof natural resources, in accordance with the objectives ofsustainable development and reducing the Company’s environmental impact and dependence on ecosystem services. Excavated earth and rocks (96%) and construction
and demolition waste from O&M activities (89%) wererecovered almost in their entirety, deriving mainly fromthe maintenance of power grids as well as of generation
plants. Process waste from thermoelectric generation
was also recovered to a significant extent, including coalash and desulfurization gypsum, which were reused inconstruction industry to produce cement, concrete andbricks according to specific technical and environmental
control requirements. In particular, the percentage sent forrecovery was 75% for coal ash and 88% for desulfurization gypsum, slightly down on the previous year (respectively 80.4% and 88.3% in 2022). Finally, industrial waste,
WEEE and metal waste, including iron, copper and aluminum, deriving from the maintenance of generation plants
and power grids was mainly destined for recovery (90%).
In 2023 the target of reducing the use of single-use plastic by 85% in Italy and Spain was consolidated. A reduction of disposable plastic in Enel’s offices was achieved

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through a series of initiatives, including a program to replace water bottles with water dispensers connected tothe main supply (made possible by the system configuration), a contractual ban on the use of disposable plastic inbar and canteen activities, greater attention to the packaging of products offered in vending machines, as well
as by replacing plastic cups with cups made from compostable material.

Waste produced by construction and demolition activities
In addition to the commitment to reducing waste in theoperational and maintenance activities described above,
monitoring of waste production and recovery also extends
to the value chain, including waste resulting from the construction of new renewable plants and the demolition ofthermoelectric plants at end-of-life, as it is directly linked tothe implementation of the Group’s decarbonization and energy transition strategy. Above all, these activities are linked
to the generation of inert materials, such as excavated earth
and rocks, as well as valuable metal waste, in the case of theend-of-life decommissioning of plants. Enel is constantly
committed to maximizing their recovery. In particular, forthe recovery of waste deriving from the end-of-life decommissioning of plants, selective demolition techniques of thestructures and dedicated management procedures are adopted to maximize their economic valorization.
In 2023, waste produced on the construction sites of new
renewable plants (wind and solar) and by the 3Sun gigafactory totaled 0.165 Mt, which consisted almost exclusively of non-hazardous waste (99.7%). The same activities

also produced 7.4 Mt of excavated earth and rocks, which
was entirely reused in situ.
In addition, waste from the end-of-life demolition of thermoelectric plants totaled 0.4 Mt. Waste from these activities consisted of 95% non-hazardous waste (mainly excavated earth and rocks, inert waste from construction anddemolition and industrial waste, including mainly metals)
with average recovery values of 80%, rising above 99% for
the metallic portion. Programs at country level and dedicated initiatives at plant level are aimed at optimizing themanagement of this waste, with a view to maximizing its
recovery and value.
Finally, with reference to the specific redevelopment
worksite of the Enel headquarters in Viale Regina Margherita (Rome, Italy), launched in November 2020 for aduration of approximately 40 months and involving a total area of approximately 80,000 m2, the amount of waste
produced in 2023 totaled 17.9 kt, of which 99% (about 17.7kt) consisted of demolition aggregates, glass and metals,
which was entirely sent for recovery.

Improvement initiatives
The “Zero Waste” initiative, launched in 2020 by Enel GreenPower, is now into its third year and involves the countries
in maximizing the reuse of materials, by reducing waste
generated by their plants and on construction sites, andoptimizing waste recovery and recycling through the
adoption of projects and good practices that often also
involve contractors and local communities. The search for
new solutions has continued this year too, by engaging
the Innovation area to facilitate the circular managementof renewable technologies at end-of-life.
In particular, great attention is paid to testing solutions
for the sustainable management of the end-of-life components from solar and wind technologies, in anticipationof their decommissioning in the coming years, especiallystarting from 2030.
As regards solar technology, examples include the “Pho-170

Sustainability Report 2023

torama” project, aimed at recovering the most useful materials contained in photovoltaic panels and then reusing
them in the same production chain, and the Chilean project on the “2nd life” of panels, launched in 2022, whichaims to research innovative solutions for analyzing failuresin disused PV modules and reusing said modules in alternative applications.
Meanwhile as regards wind technology, the “Wind New life”
project has reached the phase of verifying the technical andindustrial-scale feasibility of recycling wind turbine blades;
there are Proofs of Concept (PoCs) focused on suitability
testing of ground material from wind turbines for use indifferent industrial sectors. Work is also ongoing, especiallyon a national scale, in conjunction with other utilities andsector associations, on advocacy actions and plans for theend-of-life management of wind turbines.

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Appendixfor industrial cleaning. This practice enables
specific cloths to be repeatedly reused, as well asreconditioned to their original absorbent function
through controlled washing operations. The
companies producing the reusable technical cloths
not only rent them out, but also collect them backand wash them after use. A high level of control
is ensured in each phase by making the cloths
identifiable by means of a special indelible mark andproviding evidence as to the correct management ofwastewater resulting from the various washes. The
renting and reuse of the cloths makes it possible toreduce their production and the disposal to landfill ofoften hazardous waste (around 10-20 t/year of waste
is avoided for each plant taking part in the trial), withundeniable benefits for the environment, as well as
economic savings.

TECHNICAL CLOTHS INITIATIVEENEL GREEN POWER &THERMAL GENERATION
ITALY
In order to promote the reduction of waste generated
by absorbent and filtering materials, used in routine
and non-routine maintenance operations carried out
on its plants, Enel Green Power Italy has launcheda trial, with the involvement of the Ministry of theEnvironment, on a number of thermoelectric andrenewable plants for using so-called “technical cloths”

WASTEWATER

100%
0
ZLD DISCHARGE
WITH ZEROLIQUID

4

CONCENTRATE
FOR DISPOSAL

5%95%
DISTILLATE

As regards waste generated by grid management activities, in continuity with programs launched in previous
years, the commitment to the recovery of special waste,
both hazardous and non-hazardous, has continued. In
particular, dielectric mineral oils used as insulators inelectrical equipment are given to authorized companies
for regeneration and, only in cases where this option is not
feasible, destined for waste-to-energy processes.
Initiatives undertaken in the various countries are also
ongoing. Notable examples are the “DPI NewLife” projectin Italy, focusing on the recovery of expired or used personal protective equipment for use in construction as asecondary raw material. A pilot project called “Telereciclo”
was also launched in Colombia, to transform operational
staff’s obsolete clothing into multicolored fiber by meansof a cleaning and shredding process. Another pilot project
started in Colombia aims to recover obsolete porcelain insulators (about 200 t), which are suitably treated and reused in construction to improve the resistance of cement
to abrasion, wear and chemical agents.
In 2023 Enel X Global Retail maintained its commitment
to a sustainable approach that is oriented towards reduc-ing the consumption of natural resources and reducing
the use of virgin plastic in its products and in the packaging of products destined for the European market, in
accordance with EU Directive 2019/904 and EU Decision 2020/2053. In the Enel X Way Waypole™2 product(column-type charging infrastructure for electric cars),
the materials of both external enclosures and the internal parts have been replaced with sustainable materials(certified 100% recycled plastic) from recovered E-Distribution energy meters. The same type of recycled plastic
is now used for the casing of the Enel X Way Waybox™
Pro product (box-type charging infrastructure for electriccars). The new residential charging product, Waybox Start,
is also manufactured using sustainable materials and consists of over 60% recycled plastic from external sources.
The commitment to reducing plastic in packaging resulted in the elimination of plastic handles and bags foraccessories and switching all primary packaging for products such as the Waybox and Waypole to recycled cardboard (over 50% recycled material in primary packaging
and over 90% in secondary packaging).
As regards products placed on the market, Enel X Global

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171

Retail promotes supply chain initiatives to reduce the useof plastic by applying reward criteria to the selection of
suppliers in a way that favors the use of recycled, recyclable or reused materials or products that reduce demandfor virgin materials and incorporated carbon emissions.
In addition, Enel X Global Retail adopts the Extended Producer Responsibility (EPR) model, which also includes thepost-consumer phase, by adhering – also on a voluntarybasis – to collective WEEE collection systems in all themarkets in which it operates, as well as the collection ofbatteries and packaging, and by launching end-of-life
management initiatives for marketed products and optimizing their design with a view to maximizing their reuse
and recycling.
Initiatives launched in previous years are continuing,
namely the “ALVA (ALternativas de VAlorización)” projectin Spain for the reuse and recycling of products or components of Electrical and Electronic Equipment (EEE) collected from customers, and the agreement between Enel

X Italia and the CdC WEEE (WEEE Coordination Center),which saw the participation of 94 B2C installation companies. Through this Protocol, the provision of EEE collection
service is promoted through syndicated collection systems distributed nationwide.
Other initiatives are being developed on the ground. For
example, in Italy, Enel hosts the “DireFareRAEE” campaign in two of its Spazio Enel outlets; the campaign was
launched by Erion WEEE and is intended to educate andraise awareness among citizens about the importance ofrecycling electrical and electronic waste and to encourage
the transition towards the circular economy.

For further initiatives, see the chapters“Circular economy” and “Sustainable supply chain”
in this document.

Energy efficiency
3-3

302-1

302-3

302-4

Within an international context in which energy efficiency (“energy efficiency first”) is considered a priority, Enelsystematically and continuously promotes every possible
improvement action. One of the actions implemented by
the Enel Group that is certainly highly effective is the implementation of certified Energy Management Systems
according to the EN ISO 50001 international standard andregulatory obligations established by the new EU Directive
2023/1791 adopted by the European Council as part of its
energy efficiency strategies.
The binding nature of the Directive obliges member states
to adapt national legislation to the new community provisions; specifically, based on the average annual consumption of all energy carriers, companies will have to implement an energy management system (EN ISO 50001) andin any case carry out energy audits on their organization
every four years (EN 16247-1).
Enel has promptly taken steps to meet these last obligations in Italy and Spain, guaranteeing compliance with requirements relating to energy use and consumption, as wellas adopting a systematic approach aimed at continuous
improvement, starting from the main energy generation
units, where the coverage level of ISO 50001 certificates for
Italy stands at 85% of total thermoelectric capacity.
Around the world, Enel has certified approximately 13,500
MW of installed capacity to the ISO 50001 standard, corresponding to 42% of thermal technology production

172

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sites. In addition, in Italy, it is worth noting that Larderello,
the oldest geothermal complex in the world, obtained thefirst ISO 50001 certification in 2021, making Enel GreenPower the first renewable energy company in Italy to haveobtained this important recognition.
As regards distribution grids all the main distribution
companies in Italy, Spain, Argentina, Brazil, Chile, Colombia and Peru are ISO 50001 certified. This commitment isconstant and continuous and is aimed at creating energy efficiency in all business processes, encompassing thedesign, construction, development and management andmaintenance of HV, MV and LV electrical networks andremote control, as well as in commercial services relating
to the transport of electricity and the connection of end
customers and manufacturers and for electricity meteringand balance processing services.
Notable achievements in Enel X Global Retail include ISO
50001 certification in the main operating companies in
Italy and Spain, where it is supported by additional certification to the respective national technical standards
UNI CEI 11352 and UNE 216701. These rules establish theconditions and requirements to be complied with so thatcompanies providing energy services can be definedas ESCo (Energy Service Companies). A certified ESCois able to offer contracts as a guarantee of results to its
customers, for services aimed at improving energy efficiency.

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Appendix

Energy efficiency in production processes
Energy consumption is mainly represented by fossil fuels,
to operate thermal power plants (with coal accountingfor 16% and natural gas 37% in 2023), and by uranium, tooperate nuclear power plants (35%). By contrast, a smaller
amount of energy consumption is related to the operationof power generation plants relying on renewable sources (biomass and geothermal). Total direct consumptionof energy for electricity generation in 2023 amounted
to 806,728 TJ (19.3 Mtoe), which was substantially lower(-27%) than the energy consumption of fuel recorded in
2022 as a result of the decrease in thermoelectric generation from coal (-89,257 TJ, equal to -43% comparedwith 2022) and natural gas (-192,858 TJ, equal to -41%
compared with 2022), as well as from nuclear, to a lesser extent. The Group’s energy intensity, which provides ameasure of its operational efficiency, was 3.891 MJ/kWheq
in 2023, down on the previous year (-20%).

CONSUMPTION OF PRIMARY ENERGY FROMRENEWABLE AND NON-RENEWABLE SOURCES(,000 TJ)
2,000

1,000

55

55

1,045

1,050

54
753

0

2021

2022

From non-renewable sources

2023
From renewable sources

Energy efficiency and electrification
products for customers
The electrification of final consumption has become acentral element of Enel’s strategy. Its intrinsic efficiency
makes it the key partner in achieving sustainable goals
globally. In line with this approach, several initiatives acrossthe Company’s businesses were strengthened and consolidated in 2023 to support commitments towards clean
electrification. In 2023, the interventions carried out by theBusiness Enel X Global Retail Business Line in relation toefficiency, technological innovation and reduction of CO2
emissions in the sectors in which the division operates,
were strengthened and consolidated.
In the public lighting sector, interventions carried out
during 2023 by Enel X Global Retail in Italy, Spain, Chile andColombia led to the new installation of 266 MW of LED
lighting systems, which together with the systems alreadyin operation generated cumulative savings of approximately 290 MWh.
For its B2C (Business to Consumer) customers in Italy,
Spain, Chile and Romania, Enel X Global Retail installedover 92,000 energy efficient products in 2023, including
condensing boilers, air to air heat pumps and over 12,000
conventional and balcony photovoltaic systems (somewith storage system).
In the B2B (Business to Business) sector, photovoltaic sys-

tems managed by Enel X Global Retail for its customers in
Brazil, Spain, Italy, North America and South Korea totaled
56 MW installed generation capacity and enabled the
production in 2023 of approximately 70 GWh of renewable energy, in addition to the energy efficiency achievedby the 22 cogeneration and trigeneration plants managed
by Enel X Global Retail in Italy and Spain.
For Enel, the development of its electric mobility businessis one of the necessary responses to the energy transition
insofar as it combines decarbonization, digitization andelectrification, in line with the Group’s sustainability objectives. In 2023, the increased diffusion of both electricvehicles and Enel X Global Retail public charging points
connected to the grid avoided over 30,000 tons of CO2
emissions.
Overall in 2023, Enel X Global Retail’s efficiency and electrification products and services, including those alreadyin operation(38), enabled customers to avoid emitting over
327,000 tons of CO2, equivalent to the CO2 absorbed in
one year by over 18 million trees. The environmental benefit values were calculated by applying specific algorithms
validated by an internationally recognized certificationbody in accordance with the principles identified in the
UNI EN ISO 14064-2:2019 standard.

(38) The estimate of avoided emissions considers consumption relating to 2023 and its calculation is limited to all plants actually in operation and energy efficiency products, including those installed in past years, within their period of warranty.

Roadmap towards natural capital conservation

173

ENERGY EFFICIENCY IN
THE CIVIL SECTOR
ITALY
Enel is committed to managing energy responsibly
to reduce its environmental impact and improve its
sustainability, through more sustainable use of energy
sources as well as improving the energy performance of
civil premises for office use, with attached infrastructures,by proceeding according to three guidelines:• compliance with regulatory compliance;• performance monitoring;• efficiency in order to achieve objectives.
In relation to compliance with current legislation andall requirements related to energy consumption andenergy efficiency, attention is notably paid to energy
diagnoses on activities relating to the civil premisesof Enel Italia SpA (Legislative Decree 102/2014),
aimed at providing adequate knowledge of theenergy consumption profile of a building or group ofbuildings or of an activity, identifying and quantifying
energy saving opportunities from a cost-benefit
perspective, and reporting on the results. Also worth
noting is the appointment of an Energy Manager(Law no. 10 of 9/1/1991), responsible for evaluatingenergy consumption and implementing projects that
increase efficiency and reduce energy-related costs

as well as ensuring the rational use of energy within
the Company.
Periodic and continuous monitoring of consumption
at site level occurs through PODs (Points of Delivery)
for electricity and PDRs (Redelivery Points) for gas. By
analyzing data deriving from the energy monitoring
systems installed in the individual plant subsystems,
as well as analyzing the operation of plants by meansof Building Energy Management Systems (BEMS), it ispossible to identify any anomalies in the operation of
the plants and implement actions for the continuous
improvement of their energy performance.
Where monitoring actions such as energy audits,
together with cost-benefit assessments, establish
the opportunity to pursue the best technologicalactions, specific efficiency projects are launched. Bestpractices in the area of energy efficiency become“basic principles” for design, especially as regards
electrical and mechanical plant engineering fields(HVAC), such as:• installing efficient technologies (e.g., upgrading toLEDs, presence sensors and brightness sensors forlighting);• improving housings (e.g., replacement of fixtures);• decommissioning boilers and replacing them withheat pump technologies according to principles ofelectrification of consumption (Net Zero);• installing Building Energy Management System andenergy monitoring systems;• installing systems for producing energy from renewablesources (photovoltaic, solar thermal panels, etc.);• installing charging stations for electric vehicles.

Environmental legal disputes
2-27

2-4

The number of legal proceedings as at December 31, 2023
was 112 across the whole Group. The main environmental
disputes related to Latin America. The amount of fines imposed in 2023(39) was approximately 3.98 million euros. In
addition, 12 non-monetary sanctions were issued. In 2023

the most significant sanctions(40), under review by thesame authorities or subject to appeal with the competentauthorities, were recorded in Colombia and are related toauthorization aspects linked to impact on habitats.

(39) The relevance threshold for sanctions is 10,000 US dollars, therefore only sanctions that individually exceed this amount are reported.
(40) The relevance threshold of significant sanctions is 100,000 euros, as defined in Enel’s policies.

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Appendix

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175

CIRCULAR ECONOMYCIRCULAR ECONOMYDOUBLE
MATERIALITYDOUBLESUSTAINABILITYPLANPILLARSUSTAINABILITY

MATERIALITYSUSTAINABLE DEVELOPMENTGOALS(SDGs) DEVELOPMENTSUSTAINABLE

PLAN PILLARGOALS (SDGs)

GROWTHACCELERATORSGROWTH• Circular economy
ACCELERATORS

MATERIAL TOPICS:• Circular economy

MATERIAL TOPICS:• Circular economy• Circular economy

For Enel, the circular economy is a strategic lever to boost the energy transition through an integrated approach to reducefossilfueltheconsumption
by generating
renewable
andmaterials
involvedin theanconstructionof new assets.
For Enel,circular economy
is a strategic
lever energy
to boost
therawenergytransition
through
integrated approachto reduce
fossil fuel consumption by generating renewable energy and raw materials involved in the construction of new assets.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026
Plan,
whichtomay
redefined,
added, oroutdated withrespect
to the progress
previous Plan.
BelowSustainability
the 2023 results
relatedthebe
previous2023-2025
SustainabilityPlan,
the resulting
and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTS
2023
RESULTSCIRCULARITY ALONG THE VALUE CHAIN

ACTIVITIESACTIVITIES

2024-2026
TARGETS2024-2026
TARGETS

MAIN
SDGs
MAIN
SDGs

12

CIRCULARITY ALONG THE VALUE CHAIN
Valorization of spare parts, equipment
and scrap from the demolition ofValorizationof spareequipment
thermal power
plantspartands,promoting
andscrap fromdemolitionofthe adoptionof thecircularbusiness
thermalmodels power plants and promoting
the adoption of circular businessmodels improvement(2)Circularity

39 million euros in revenues
generated from Reselling and39
millionactivities
euros in revenues
Recyclingin the twogenerated
Reselling andyear periodfrom
2022-2023
Recycling activities in the twoyear period 2022-2023
68%

53 million euros in revenues
generated from Reselling and53
million activities
euros in revenues
Recyclingin 2024(1)generated from Reselling andRecycling activities in 2024(1)Target is considered outdated

8

12

Circularity improvement

68%

Target is considered outdated

8

12

(1)
(2)
(1)
(2)

176

(2)

12

Reselling and Recycling activities carried out on the basis of the progress of demolition work and the market value of the scrap.
The Circularity improvement KPI measures the reduction in the consumption of fuel and materials by the Group’s plants throughout their life cycle comReselling
andenergy
Recycling
activities
carried out
on the basis of the progress of demolition work and the market value of the scrap.
pared to the
produced,compared
to 2015.
The Circularity improvement KPI measures the reduction in the consumption of fuel and materials by the Group’s plants throughout their life cycle compared to the energy produced, compared to 2015.

Goals

Progress

Goals

Progress

New

Redefined

Outdated

Not in line

In lineAchieved

New

Redefined

Outdated

Not in line

In lineAchieved

Sustainability Report 2023

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan
N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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Appendix

CIRCULAR ECONOMY

E

R

EC

O

R
VE

The Group’s vision of the circular economy is inspired by
the main international standards and is structured throughall the different phases of a product’s life, based on fivepillars: circular inputs (inputs from renewables, recycling,reuse); life extension (through modularity, facilitated reparability, and predictive maintenance); product as a service (the Company provides the customer with a service
and remains the owner of the product, maximizing its use
factor and useful life); sharing platforms (shared use of anasset among multiple users); and new life cycles (recoveryof value of assets and materials, e.g., through reuse andrecycling).

CIR

Y

CU

LA

R

D

ES

IG

LU

As part of Enel’s energy transition process, an integrated
approach was adopted from the outset, which allows fora reduction in the consumption both of fossil fuels thanks
to power generation from renewable sources, and of raw
materials used in the construction of new assets thanks tothe principles of the circular economy.
In particular, a circular model enables an accelerated transition and ensures competitiveness, resilience, and sustainability in several areas:• environmental, by reducing environmental impacts tied
to the procurement of virgin raw materials;• social, by fostering the creation of local value chains;• economic, by creating new revenues and reducing procurement risks and uncertainties tied to supply chainsand external shocks.

N

VA

1

NEW LIFE CYCLES

Any solution to preserve the value ofan asset at the end of a life cycle
through reuse, regeneration,
upcycling or recycling, inconjunction with the other pillars.

CIRCULAR INPUTS

Production and use model
based on renewable inputs
or previous life cycles(reuse and recycling).

LIFE
EXTENSIONSHARING
PLATFORMS

Systems for joint
management by multiple
users of products,
goods or skills.

PRODUCT AS
A SERVICE

Approach to the design
and management of an asset
or product in order to extend
its useful life, e.g., throughmodular design, facilitated
reparability, or predictive
maintenance.

Business model in which the customer
purchases a service for a limited time,
while the Company maintains theproperties of the product, maximizing theutilization factor and useful life.

C I RC U L A R U S E

A key element to fully redesign the value chain with a circular approach is the collaboration with suppliers, customers,
institutions, associations, other actors in the supply chain
and other sectors more generally, since waste material fromone production chain may serve as a resource for another. It

is vital to extend this collaboration to the innovation ecosystem too (see the chapter on “Innovation”), so that the entire
model can be redesigned by leveraging new solutions, notonly from a technological standpoint, but also from a business model, regulatory and collaborative perspective.
Circular economy

177

Governance and policy
The circular economy is a cross-cutting issue that impacts
the entire life cycle of an asset. This is why it is key to engage different areas of the Company, from procurement,
operation & maintenance, through to the structures thatmanage assets at the end of life. This integrated approachmakes it possible to minimize commodity-related impacts
and identify economic and improvement opportunities.
To this end, the “Enel Grids and Innovability – Sustainability”
Function contains a specific unit, which plays a guiding andcoordinating role at Group level in management processes
that deal with circularity and activities in the Countries andBusiness Lines to ensure a coordinated approach to strategies, foster knowledge-sharing and build synergies.
The circular economy is an essential lever for Enel’s en-

vironmental commitments and its application in businessactivities is one of the strategic objectives of the Group’s
Environmental Policy(1), which was updated this year to further strengthen the commitment to circularity. In particular, these include promoting circular economy approaches
and initiatives that involve working with the supplier ecosystem throughout the life cycle to reduce resource consumption and minimize environmental impacts throughout the value chain, incentivizing the use of secondary
raw materials, improving material tracking, and identifying
opportunities for extending the useful life of assets andmaximizing the amount of assets and materials recoveredat the end of life.

Role of raw materials in the energy transition
and in Enel’s strategy
Over the past few years, there has been a heightened interest in raw materials as a result of growing demand in key
energy sectors (renewables, storage systems, distribution
networks, electric mobility) as well as pressing concerns
over supply risks, price uncertainty, and environmental andsocial impacts. Against this backdrop, events such as thewar in Ukraine and other geopolitical tensions in recent
years have added to the complexity of the issue, prompting a shift in response from numerous organizations. For
example, in early 2024 the European Union approved the
Critical Raw Materials Act with the aim of fostering EU
access to a competitive and sustainable supply of criticalmaterials(2) by supporting the development of domestic
supply chains and innovative research projects. This document lists 34 critical raw materials (including silicon, lithium, copper and aluminum), identified according to theireconomic importance and supply risk. Of the critical raw
materials, 17 are listed as strategic given their use in technologies of high strategic importance; these include rareearths, lithium and silicon, materials used in wind turbine
motors (mainly in offshore wind turbines), batteries andphotovoltaic panels.
Back in 2020, Enel launched a working group that involves
all internal business areas to develop and update theGroup’s raw materials strategy, with a particular focus on
critical raw materials.
The Group’s strategy involves: assessing raw material

needs based on industrial and strategic plans and end-oflife material flows; risk and impact assessments on environmental, economic, geopolitical and social issues (witha particular focus on human rights); identifying priority
areas of intervention; and lastly, developing measures tomitigate risks and impacts through specific business projects and actions.
The results of the analysis conducted by the working
group in 2023 show that the equipment and related
raw materials sourced by the Group (both currently andprospectively) are mainly tied to the development of renewable technologies (photovoltaic, wind, batteries) andthe distribution network, but also involve end-customer
solutions and digital assets.
With respect to the raw materials used by the Group, it
is estimated that concrete and metals (steel, aluminum,
copper) have the highest volumes (in tons). Concrete is
the most widely used material, being used in particular forfoundations of wind and solar power plants as well as gridassets such as substations and poles. Metals are present
in all of the Group’s assets: steel for wind towers, foundations, poles, transformers, public lighting, photovoltaic
trackers; aluminum is used in cables and photovoltaic panels; and copper in various electronic components used ingrid, wind, photovoltaic, and battery assets.
Based on the most recent list of the Critical Raw Materials
Act, the Group is estimated to require around 8% criticalraw materials. If copper and aluminum (metals recently(1) Reported in the “Roadmap towards natural capital conservation” chapter of this Report.
(2) https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1661.

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added to the list) were excluded, and only critical raw materials for specialized technological applications (such aspolysilicon and lithium) were considered, this requirement
decreases to around 1%.
The materials identified as priorities for the Group arepolysilicon, base metals (steel, copper, and aluminum),and specialized materials used in batteries (e.g., lithiumand graphite). Identifying priority focus areas is key todetermining the actions and circular economy projects
needed to mitigate the associated risks and impacts (seethe section on “Enel’s key circularity initiatives”).
Some examples of these actions include developing specialized expertise on raw materials, with an analysis of therecyclability of key assets (see the box on “Analysis of re-Analysis of recycling
technologies for renewables
In 2023, the raw materials working group conducted
an analysis of current and forward-looking recycling
technologies for key renewable technology
equipment (wind turbine, photovoltaic module, lithium

WIND PLANTS

PHOTOVOLTAIC
PLANTS

BESS(2)

4

Performance 2023

5

Appendix

cycling technologies for renewables”); targeted training
on raw materials aimed at the units most involved in the
topic; specialized studies (see the box on “Enel Foundation”); external benchmarks with other leading companies;
analyses of market dynamics on raw materials; and focus
groups with raw material producers.
Enel also collaborates with associations and institutions
active on the issue. For example, the Company is part of
the European Raw Materials Alliance (ERMA) – an initiative
launched by the European Union in late 2020 with the aimof ensuring access to all raw materials needed to realize
the vision for Europe’s Green New Deal. ERMA identifies
barriers, opportunities and investment cases for building capacity at all stages of the value chain, from mining
through to waste recovery.

batteries) by engaging suppliers, recycling companies,
internal estimates, and external studies on the topic.
The analysis considered the characteristics of therecycling technologies generally available to date on
an industrial scale, and made a prospective estimateof the recycling efficiency trends for the mainmaterials involved in renewable technologies.

INPUT MATERIALSUSEFUL LIFE

NEW LIFE CYCLES• Main materials used
- Steel- Copper- Aluminum- Composite materials• 25 years average useful life

• Current recyclability ~85%
(steel, aluminum, copper alreadyfully recycled)

INPUT MATERIALSUSEFUL LIFE

NEW LIFE CYCLES• Main materials used
- Aluminum- Glass- Copper- Polysilicon- Silver• 25 years average useful life

• Current recyclability ~80/85%(steel, aluminum, copper alreadyfully recycled)

INPUT MATERIALSUSEFUL LIFE

NEW LIFE CYCLES• Main materials used
- Lithium- Graphite- Iron- Phosphorus- Aluminum- Copper• 15 years average useful life

• Current recyclability ~75%
(aluminum, copper already fully
recycled)• Expected end-of-life volumes
according to installed capacity(1)~1,465 MW before 2030
~1,335 MW 2030-35~1,975 MW 2035-40~11,250 MW after 2040

• No significant end-of-life
volumes are expected before
2040 considering installedcapacity(1)• No significant end-of-life
volumes are expected before
2040 considering installedcapacity(1)• Estimated recyclability
by 2030 ~92%
(improvements in the recycling ofcomposite materials)• Estimated recyclability
by 2030 ~90%
(improvement in recycling rate ofprecious materials such as silver)• Estimated recyclability by 2030
~85%
(improvements in recycling of cellmaterials)(1) Assessed at the end of 2023.
(2) Battery Energy Storage System.

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Circularity in mining andrenewable energy value chains
In 2023, the Fondazione Centro Studi Enel (EnelFoundation) developed several initiatives toinvestigate possible material shortages and what has
been called “green inflation”. This term was introduced
to describe the rising prices of metals and minerals,
such as copper, aluminum, and lithium, which areessential for solar and wind power, electric carsand other renewable technologies. To this end, aspart of the collaboration agreement between Enel
Foundation and ICMM (International Council on Mining
and Metals), the study “Circularity in mining andrenewable energy value chains. Technological, policy
and financial aspects”(3) was developed together withCCSI (Columbia Center on Sustainable Investment).
The research focused on identifying the political,
legal, regulatory and financial barriers in the mining
and energy sector, as well as on the levers andstrategies to explore potential circular businessmodels and pathways for energy transition, to be
adopted in line with the specific characteristics of thesectors and various value chains.
The aim of the study was to highlight and disseminate
the idea that, in order to eliminate technical andlogistical barriers to circularity in solar and windenergy mining value chains, more political andfinancial support is needed, along with commitment
from the sectors involved: from mining and metals
companies through to utilities, manufacturers andresearch institutions. The report therefore prompts
these sectors to actively develop strategies that
increase the circularity of the critical materials
needed for the energy transition.

Circular economy metrics and targets
In Enel’s journey towards circularity models, metrics havelong been a key element in assessing the effectivenessof the solutions to be implemented and in defining aroadmap for improvement (for more information see theCirculAbility© model). Throughout the years, various indicators and metrics have been developed on the measurement objective, maintaining a joint approach basedon both the quantitative analysis of all input and output
resource flows, and the dual assessment of environmental and economic impacts.
Specifically, two types of indicators are currently used at
the Group level:• operational indicators, which measure in-depth the impacts of individual circular economy initiatives in both
environmental (e.g., assessment of the tons of material
recovered) and economic terms (e.g., assessment of the
EBITDA generated from the sale of materials for recovery);

(3)

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• overall performance, which is assessed by decouplingbusiness activities from resource consumption, i.e.,
maximizing economic value creation (e.g., in terms of
EBITDA) or industrial value creation (e.g., in terms of energy produced) of a business activity, while reducing
the consumption of fuels and raw materials it requires.
For example, with regard to overall performance appraisal, the KPI “Improving circularity” was developed, whichmeasures the reduction (compared to 2015) in the consumption of materials and fuels of the Group’s plants
against the energy generated. To extend this assessment
not only to generation, but also to the activities of theentire Group, the Economic CirculAbility© indicator wasdeveloped, which considers the Group’s total EBITDA (ineuros) and compares it with the amount of resources consumed (in tons) by the various business activities (both fuels and raw materials) throughout the value chain.

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Appendix

Enel’s key circularity initiatives
The Group’s action plan focuses on materials identified
as priorities, but initiatives are also being pursued on other materials such as plastics, composites, and concrete,
which present significant challenges and highlight room
for improvement in terms of circularity. Enel’s circularity

initiatives cover components for the distribution network,
construction and operation of renewable plants (wind, solar, BESS), and products and services for end customers,
and focus mainly on three of the five pillars of the circularity model adopted.

Circular inputs
In the design phase of a product, raw material consumption can be reduced by using circular inputs, i.e., from previous or alternative and more sustainable life cycles, or by
optimizing the use of resources.
For components of public lighting systems and for electrical distribution assets such as transformers and poles,
mechanisms have been introduced in tenders to promote
the purchase of equipment with reduced CO2 impact, encouraging the use of recycled aluminum and steel.
Moreover, storage systems based on non-traditional tech-

BASE METALS
Low-carbon or recycledmaterials for network assets(e.g., transformers, poles)

CIRCULARINPUTS

nologies and chemistries are being studied and tested(see the chapter on “Innovation”).
The “Circular by design” approach, on the other hand, allows for integrated action to optimize material consumption and use, and was adopted by Enel Grids as part of thedevelopment of the new secondary substation design.
Thanks to this approach, a new secondary substation
design was developed in 2023 aimed at promoting landscape integration, solutions with lower environmental impact, and modularity (see the chapter on “Innovation”).

MATERIALS FOR
SPECIALIST APPLICATIONS

New technologies for storage

POLYSILICONOTHER MATERIALSTechnological innovationand efficiency in solar
panel production (3Sun)

Use of recycled plastic(charging solutions,
Circular Smart Meter)

Recycled aluminum forlighting poles

New secondary
substation design
Sustainable Procurement Strategy

Main Group projects in 2023

TECHNOLOGICAL INNOVATION IN
SOLAR PANEL PRODUCTION (3SUN)
The 3Sun Gigafactory project in Catania is moving
towards greater independence for the photovoltaic
supply chain, not only by bringing cell and panel
production to European soil, but also by using
innovation to reduce silicon use intensity and aiming
for a diversified and sustainable supply chain.
Starting in 2024, the new high-efficiency HJT panel
will optimize the amount of silicon in modules byusing silicon slices that are 15% thinner. Innovations
in metallization grids and Electrically Conductive
Adhesives (ECAs) in panels are in the pipeline forthe coming years, which will reduce silver use by

30% in 2025 and over 60% in the following years.
Moreover, there will be a further increase of at least
20% in panel efficiency compared to today, by using
a tandem structure which can produce more energy
for the same amount of material used in the installed
modules.

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SUSTAINABLE
PROCUREMENT STRATEGYWith its Sustainable Procurement strategy, the Groupaims to improve the sustainability of purchased
products in terms of carbon footprint, circularity, andrespect for human rights, through whole-life tracking
of environmental and social impacts, and mechanisms
to select the most virtuous suppliers on these issues.
In particular, for the main commodity categories andcore components(4), Enel asks its suppliers to disclose
the quantities of materials present in the components
used by the Group (e.g., metals such as steel,aluminum, and copper), and the respective

recycled and recyclable shares. This information is
integrated through certifications such as the EPD(Environmental Product Declaration) – a voluntary
certification scheme which provides an integrated
view of environmental impacts relating to raw
materials, enabling the use of bidding requirements
and reward factors to incentivize suppliers to offer
increasingly sustainable products (e.g., encouraging
the use of recycled material).
Similarly, an ad hoc tool was developed for mapping
the upstream supply chain, with the aim of assessing
potential points of concern regarding human rights
compliance (see the chapter on “Sustainable supply
chain”)

CIRCULAR USE
OF PLASTICS
Enel’s private and public AC (alternating current)
charging solutions use recycled polycarbonate as
the main structural material: 100% for Wayboxes and
75% for Waypoles. In 2023 alone, over 3,700 Waypole
public charging stations were installed globally,
including around 2,000 in Italy, and 88,488 Wayboxes
were sold. Thanks to an integrated approach in
the design phase, the use of materials (mainly themetal component) for Waypoles was also optimized
compared to the previous design, reducing the overall
weight of the product by about 32%.
In 2020, production began of the new Circular Smart
Meter developed through a circular model with apathway to redesign the electronic meter value
chain using recycled plastic. By 2023, around 2.8
million circular meters were produced with a total
consumption of 2,000 tons of recycled plastic. 48%
by weight of the new meters are reclaimed materials:
end-of-life recyclability (plastic, steel and othermetals) is estimated at 79% by weight.

(4) Core categories are those that are strategic to the business, including wind turbines, inverters, smart meters, photovoltaics, switches, switchgear, cables,transformers, charging stations, street lighting, smart home solutions and storage systems.

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Appendix

Useful life extension
Using an asset for longer reduces the need for new assets
and, in turn, reduces the overall need for materials. This
is why the Group is always looking for new technologicalsolutions to extend the years of asset operation, while still
maintaining performance and efficiency. Various initiatives
have been carried out in all Countries for several years

BASE METALS

now, including the application of machine learning techniques for predictive maintenance and, more generally, repairs of components used in the grid and in solar and wind
power plants. Another example of life extension activities
is the development of software for fault prediction withinstorage systems.

MATERIALS FOR
SPECIALIST APPLICATIONSPOLYSILICONOTHER MATERIALS

Second-life batteries(PIONEER)

USEFUL LIFE
EXTENSION

Fault prediction software
Predictive maintenance and repairs

Main Group projects in 2023

THE PIONEER PROJECTWith the PIONEER project (airPort sustaInability
secONd lifE battEry stoRage) in Italy, Enel iscollaborating with ADR (Aeroporti di Roma) todevelop the design for a storage system to be built
at Fiumicino airport, which plans to reuse end-oflife batteries from electric vehicles. In 2023, thesystem’s executive design was completed, for astorage capacity of 10 MWh, which plans to reuse 786
second-life batteries.

The partnership between Enel and ADR also includes
the creation of a large self-consumption photovoltaic
plant in Europe. The plant will be built in collaboration
with Circet SpA, a leading continental infrastructuredevelopment company, and will consist of around
55,000 photovoltaic panels placed on a total area of
340,000 m2. With a capacity of 22 MWp once fully
operational, the plant will generate around 32 GWh ofrenewable energy per year, saving more than 9,300
tons of CO2.

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183

New life cycles
When an asset reaches the end of its useful life, the goal
is to identify solutions that maximize the amount of materials recovered and reintroduce them into new production
cycles. All of the Group’s various Business Lines are actively involved in major asset recycling projects.
In the photovoltaic sector, Enel – together with other players in the photovoltaic supply chain – is participating as apartner in the Photorama project, funded by the European
Union, which aims to demonstrate the technical and industrial feasibility of recycling solar panels by maximizing
the recovery of materials including silver, silicon, indium,gallium(5). Also in the wind power sector, Enel is participating in projects at European level to develop new recycling

NEW LIFECYCLES

plants for the recovery of wind blade materials through thegeneration of secondary raw material that may be used in
new industrial processes (see the chapter on “Innovation”).
In Chile, some 130 new power distribution poles were built
in 2023 using concrete from decommissioned power line
poles. The material is processed and used as aggregate
for the production of the new poles, thereby avoiding theuse of virgin gravel and sand. This way, the new poles havea recycled aggregate content of 45%.
Circular management is also planned for the Group’s decommissioned IT assets, including reuse by employees,
sale to third parties, or donation for social purposes (seechapter on “Digitalization”).

BASE METALSMATERIALS FOR
SPECIALIST APPLICATIONS

Grid mining

Battery recycling

New Life program forequipment and spare parts

POLYSILICONOTHER MATERIALS
Recycling of windturbine blades

Recycling of solar panels

IT asset recovery

Main Group projects in 2023

BATTERY RECYCLING
Enel is working with specialized partners to develop
a battery recycling plant in Spain (with a target
capacity of 8,000 tons/year), with the aim ofrecovering valuable materials such as cobalt, nickel,
and lithium. The project involves the constructionof an industrial-scale pilot plant for the recycling

(5)

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https://www.photorama-project.eu/.

Sustainability Report 2023

of batteries used in the automotive field, near
the Compostilla complex – a decommissioned
thermoelectric power plant. The innovative system
will enable batteries to be recycled through thestages of unloading, dismantling, crushing andsorting of materials, for reintroduction into the
production cycles of new accumulators.

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Appendix

GRID MINING
The grid mining strategy aims to review the end-oflife management processes of grid assets with a viewto greater sustainability, and to identify practices
for recycling and reusing materials to achieve acircular value chain. Grid mining therefore relates
to all activities aimed at recovering precious metals
and other materials and devices from obsolete
infrastructure so as to minimize environmental
impacts, maximize social benefits in the area, andcreate market value.
To ensure comprehensive tracking of materials andfacilitate the implementation of the grid mining
strategy, a new digital information gathering tool was
designed and implemented: the “digital passport”
makes it possible to collect and manage data oneach type of asset regarding the various types
and quantities of materials in use, with the aim

NEW LIFE PROGRAM FOR
EQUIPMENT AND SPARE PARTSThe New Life program aims to give new life to
obsolete spare parts and equipment in power
generation plants or warehouses across the globe, forall technologies be it conventional or renewable.
With a methodology established at global level,
the aim is to give a new life to obsolete parts
located in power plant warehouses, equipment
in decommissioned power plants, and plants
undergoing repowering (e.g., wind and hydro plants)

Daniela Calarco
Head of Asset Management
Agreement & New Life Program,
Program PMof facilitating recovery opportunities, effectively
scheduling grid decommissioning, and maximizing
the value of materials. This system is a driving force
in the Group’s ambition to open up the “mine” to theoutside world, making it available to other production
chains, and to feed new markets for secondary raw
materials. The aim is to promote development in thelocal area and save virgin materials, thereby creating
new job opportunities in waste material recovery
initiatives.

by identifying the best opportunities for the assets:internal reuse, sale, and ultimately recycling. In 2023,
the program brought in around 23 million euros in
economic value, with 13.8 million euros in “avoided
costs” thanks to the internal reuse of spare partsand equipment at all plants in the global scope. An
excellent example of internal reuse was the recovery,
from the Montalto di Castro plant, of a 1 GT Rotor thatwas destined for Chile as a strategic spare to cover 3
plants in the country. Another example is the resale ofwind turbine components to the Original Equipment
Manufacturer.

“With the New Life program, we optimize themanagement of all spare parts and equipment thatare no longer used or obsolete in power generation
plants, with the goal of giving these assets a new life.
We then identify the most appropriate solution, be
it donation, internal reuse in other plants, sale in theexternal market or, as a last resort, recycling to recoveruseful parts, thereby generating both financial andenvironmental benefits”

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ENEL PEOPLESUSTAINABILITY PLAN PILLARSUSTAINABLE DEVELOPMENT GOALS (SDGs)

STAKEHOLDERS• Enel people

The Group’s goal is to pursue people empowerment by promoting active engagement, a sense of responsibility and entrepreneurship ensuring continuous listening and quantitative and qualitative performance appraisals aimed to self-empowerment. Enel supports training with programs to improve existing skills, alongside the constant attention to the upskilling
and reskilling plan for Enel people. Specific actions and initiatives are promoted at all stages of women’s journey in theorganization, with a concrete commitment to overcoming the gender gap and spreading an inclusive culture at all levels of
the organization.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTS2024-2026
TARGETS

MAIN
SDGs

100% people involved

100% people involved in 2026

875.6% participants

80% participants in 2026

8

100% people involved

100% people involved in 2026

8

99% people appraised

99% people appraised in 2026

8

ACTIVITIESLISTENING AND ASSESSMENT

Climate survey(1)(2)

Open Feedback Evaluation Performance appraisal

WELL-BEING
Overall Global Wellbeing Index(1)60%>60% in 2026

8

Enel people in remote working

Approximately 36,000 eligible
employees

Target outdated as aconsolidated Group-levelmaturity status on remote
working has been achieved.

8(1) 2023 data refer to the survey conducted in 2022.
(2) Eligible and reachable persons: those who have a permanent contract and have been in place and active for at least 3 months during the year.

Goals

New

186

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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RESULTSACTIVITIES

4

Performance 2023

2024-2026
TARGETS

5

Appendix

MAIN
SDGs

TRAINING

Average training hours per capita(3)48.1 hours>45 hours in 2026

48

Promoting reskilling and upskilling
programs for Enel people

44.8% of training hours
dedicated to upskilling andreskilling

40% of training hours
dedicated to upskilling andreskilling in 2026

48

Supporting dedicated training
on digital skills for all Enel people

15.5% of training hours
dedicated to developing digitalskills(4)Target is considered outdated
as widespread awareness has
been gained on digitalization

Scholarships available for Enel people

132 scholarships(5)Activity under review

417Developing a new culture of “Humansustainability” for Enel people

13.1% of training hours
dedicated to developing humanskillsTarget outdated as it has beenachieved

4

8

4

ENHANCING DIVERSITY

Women in selection processes(6)Women managers (including Top
Managers) and middle managers

52%

50% in 2026

526.2% managers(including Top Managers)>27% managers (including Top
Managers) in 2026

533.1% middle managers>34% middle managers in 2026

532.5% managers and middle
managers(8)33.5% managers and middle
managers in 2026(7)547.2% in managerial succession
plans(8)>46% in managerial succession
plans in 2026

550.4% in Top Manager
succession plans(8)45% in Top Manager succession
plans in 2026

5Over 7,800 female students
involved

Over 19,000 female students
involved in the period 2024-2026

Women in succession plans(7)Female students involved in career
guidance initiatives in the STEM area

58(3) Training hours include mandatory and optional training.
(4) 2023 figure lower than the target in the 2023-2025 Plan (equal to 20%). The result was partly influenced by the micro-learning mode, which makes training
more flexible, frequent and continuous, involving more people, but with a lower number of hours. Digital skills are also incorporated into other specialized
pathways, such as technical and safety processes, where digital skills are integrated into broader and more specific programs.
(5) 115 scholarships per year are provided under effective academic partnership agreements for 2024-2025.
(6) Selection processes involving blue-collar workers or similar technical roles as well as related to the USA and Canada perimeter are not included, due to local
regulation that does not permit gender to be tracked during the recruitment stage.
(7) Target included in the Top Management remuneration plan.
(8) Indicator subjected to reasonable assurance.

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ACTIVITIES2023
RESULTS2024-2026
TARGETS

MAIN
SDGs

Promoting an inclusive culture free of
prejudice and harassment

Specific training initiatives
involving around 57,000
colleagues have been
implemented in Enel’s main
countries, with the aim of
spreading a prejudice-free
culture and raising awareness on
harassment in the workplace.
Specifically:• training course on prejudicecompleted by around 49% ofEnel people (including around
38% of Managers and Top
Managers);• training course on harassment
completed by around 42% ofEnel people

2 initiatives per year in the
period 2024-2026

8

10

Implementation of initiatives oninterculturality aimed at promoting
awareness and inclusion within theorganization

The topic of cross-cultural
inclusion has been promoted
in 9 countries, which haveorganized dedicated awarenessinitiatives, talks and impact
initiatives relating to different
aspects of cross-cultural
diversity (race, ethnicity,
nationality, etc.)(9)12 countries with active
initiatives in 2026

810Disability inclusion - Promoting theinclusion of people with disabilities at allstages of business travel: implementing
inclusive travel services (adoption of
Global Inclusive Travel: assistance,
accompaniment, inclusive andaccessible travel services)

88% of Enel people coveredby at least one Global Inclusive
Travel service>90% of Enel people coveredby at least one Global Inclusive
Travel service in 2026

8

10

Diversity and inclusion culture:• assessment of awareness on D&I
topics and perceived inclusion ofpeople in the organizational context;• defining a baseline for improving the
D&I strategy

Launch of the first Global
Inclusive Survey, which aims
to gather the views of all
Group people, by surveying– at all organizational levels –people’s general perceptionsof inclusion, inclusiveness,fairness and non-discrimination,awareness of inclusive behaviors,
psychological safety, and theeffectiveness of the actions put
in place in these areas, and togather useful insights to makestrategies, priorities and project
paths in the ongoing pursuit ofinclusion.

Target outdated as the survey
on D&I topics underwent
an extensive listening activity.
The survey helped establish
the baseline of a Group D&I
strategy and related action
plan, which may produce moremeaningful information to workon and approach810(9) The initiatives include:
Italy: intercultural awareness webinar entitled “La Diversità non ha Uguali” (Diversity Has No Equals);Brazil: “USP diversa” project in collaboration with prestigious universities to tackle university dropouts of students of different ethnicities;
North America: workshop on energy transition and energy sovereignty for indigenous communities;
Colombia and Central America (Panama, Costa Rica and Guatemala) and Mexico: training course on coaching integration and leadership in multicultural contexts;
South Africa, Morocco and Vietnam launched a dissemination course on interculturality at work.

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Appendix

ENEL PEOPLE
2-7

3-3

401-1

404-1

405-1

405-2

61,055

22.7%

26.2%

48.1 average hours

ENEL PEOPLEWOMEN IN THE
WORKFORCEWOMEN MANAGERS(including Top Managers)

TRAINING PER EMPLOYEE

23.4% in 2022

24.9% in 2022

-3.0%

+5.2%

65,124 in 2022
-6.2%

The profound social, economic and cultural transformations that are characterizing the current era, from thetransition to a decarbonized economy to the processes ofdigitalization and technological innovation, also have significant impacts on the workplace. Companies are therefore increasingly required to be adaptable to change in order to operate with greater flexibility in uncertain, unstable
and complex geo-political situations.
Enel’s strategy is built on people, the protagonists ofchange, and on shared values and behavior. An inclusive
approach that focuses on the individual in his or her socialand professional dimensions is essential to cope with constant change and achieve the Group’s objectives.
There are more than 61,000 people in Enel, belonging to
79 nationalities and speaking 24 languages.

47.4 average hours in 2022
+1.5%

Strengthening people empowerment processes to support the cultural evolution of Enel people, leveraging people’s skills, well-being and motivation, is just as importantas developing sustainable and inclusive training and development opportunities and pathways that enhance their
set of skills, encourage individuals to take an entrepreneurial approach, and draw on the experience available in
the organization. These dimensions are closely interrelated, intertwining and mutually reinforcing, enabling the full
expression of each individual’s potential, with a positive
impact on the sense of belonging to the corporate community (fostering involvement, attractiveness and loyalty
of people) and on the achievement of the Group’s sustainable results.

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In order to ensure that the Enel people are prepared tosupport the energy transition process and fully grasp
evolving customer needs by using their ability to understand the context, embracing and adapting quickly tochange, the training experience focuses on lifelong learning throughout their personal and professional lives, aswell as on upskilling and reskilling strategies. These strategies are essential for developing the specific skills theyneed to improve their performance in their current role,
but also to prepare for taking on new roles or responsibilities. To achieve this, in early 2024 a new unit called the“Workforce Evolution” was established, which reports directly to the People & Organization Director and the Global
Services Director. Its main aim is to define and implement
strategic insourcing guidelines and coordinate activities
related to specific training programs and communication
campaigns with both internal and external stakeholders.
Enel is committed to promoting and enhancing knowledge, relations and influence between different cultures,
as well as respect for human rights. Valuing diversity andindividual talents is a fundamental prerequisite for creating an inclusive corporate culture in which everyone canrecognize themselves, regardless of race, ethnicity, religion, gender, age, sexual orientation and ability. A distinguishing factor of Enel’s growth is the uniqueness andmix of talents, skills, aptitudes, and the visible and invisible
aspects of each person. It is therefore determined to con-tinue breaking down all forms of bias and stereotypes inorder to create a respectful environment free of discriminatory behavior, also by implementing initiatives aimed
at listening to employees, as well as communication andawareness-raising activities to address specific topics, inspiring campaigns and events.
The Group is seeking to redefine its organizational model in order to improve the effectiveness and efficiency of
its processes, making them more resilient and flexible
through simplification, streamlining and digitalization.
The People & Organization Function (P&O) defines organizational models and the multiannual people management
plan in line with the Group’s strategy. The people selection, management and development processes are governed by specific global and local policies and procedures,
published in specific sections on the Company intranet. In
order to be able to customize the offer of empowerment,
facilitate all phases of personnel management (recruiting,development, training, talent management) and thus set
up a decision-making process supported by objective
data, the Function has equipped itself with an additional
analysis tool, “People Analytics” which, based on quantitative metrics and related statistics and operating throughplatforms, allows for a real-time assessment of the different demographic clusters, and therefore also generational
clusters, that make up the Company.

Attracting and promoting talent
3-3

404-1

404-3

DMA EU (former EU14)

In 2023, the global recruitment plan focused on two mainareas:• identifying key external players to manage the digitalization of networks and the electrification of uses, which
are the new pillars of the Company’s strategy;• strengthening the Company’s internal capabilities by
supporting the professional mobility of the Enel people,
especially after reorganizing and streamlining the internal structures.
More than 3,800(1) people were hired during the year, meeting the targets established in the Strategic Plan and in the
new organizational structure.
In order to identify and attract the required profiles, ongoing efforts were made to build relationships with universities
and to find increasingly inclusive ways. Among the main initiatives are:

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190

• expanding job postings globally on key external talent•••attraction platforms such as LinkedIn, Indeed and Glassdoor to improve interaction and support the Group’s
employer branding;
implementing advocacy campaigns focused on thevoice and face of the people in the Company, such as“A day as a Colleague”, “Enel People” and “Our People,
Our Energy”, to promote a better understanding of thevarious professions within the Company by sharing theirpersonal stories and experiences at Enel on social media;
supporting the worldwide implementation of the new
application management system by providing training
to encourage a data-driven approach to the selection
process;
constant updating of the “Careers” section on enel.
com to improve candidate engagement and offering
access to content that provides a complete overview of

Fixed-term contracts are used to a limited extent, to cope with peaks in activity or to temporarily replace workers on extended leave (for example, maternity/paternity leave, etc.) and are paid wages at the same level as permanent workers.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

the Company and makes it easier and faster to browse
through the Group’s open positions.
In 2023, all Enel people were also given the opportunity
to recommend new external talents and enhance theircolleagues’ skills by identifying the various professional
development paths available (the so-called “Referral Program”).
The Company has placed great emphasis on fully integrating new recruits through its “Onboarding” program,which offers a unique and inclusive experience, providing
all necessary cultural and organizational content to ensure
a successful start to their journey with the Company.

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Furthermore, to improve mobility at work, the internal job
posting process has been enhanced, as it is a useful tool
for meeting the organizational needs and aspirations ofEnel people, promoting the diversification of skills andcreating increasingly cross-functional profiles. Additionally, in 2023, the internal job posting tool was extended toinclude new managerial positions in the Group, encouraging full participation of the Company’s global workforce.
In this perspective, further attention was paid to mapping
both hard and soft skills through the e-profile tool, which
is useful for mapping colleagues’ work experience, skills,
interests and motivation to change.

Continuous learning: upskilling and reskillingto enhance people’s current capabilities
and develop their future skills
404-2
In today’s rapidly changing economic and social environment, there is a growing need for new skills, professionalism, and adaptability. Ongoing training and upskilling andreskilling strategies are therefore becoming increasingly
essential for developing the specific skills needed to improve the performance of people in their current role andprepare them for taking on new responsibilities or roles
within the Company. For this reason, Enel has establishedseveral technical schools with the aim of developing thetransferable and specific skills of each Business Line. In
various cases, these schools collaborate with university
and academic partners and, where possible, issue globally
recognized certifications.
In particular, in Italy, a First Level Master degree in Strategic and Innovative O&M Management was offered at
the Polytechnic University of Milan for the O&M (Operation & Maintenance) colleagues of the Enel Green Powerand Thermal Generation Business Line, aimed not onlyat improving the technical skills needed to manage O&M
processes, but also at developing digital skills and all thequalities and personality traits that promote effective interaction with others, i.e., human skills.
Additionally, the Re-Generation online training project wasdeveloped in Italy in collaboration with the International
Telematic University Uninettuno, based on a short learning
program that helps develop digital skills. After passing thefinal exam, participants can earn University Credits (CFU) in
accordance with the European Commission’s ECTS (European Credit Transfer System) standards and with the European Qualification Framework (EQF) (see the dedicatedbox for further details).
Other important initiatives include the Business Development School run by Enel Green Power and Thermal Generation in collaboration with SDA Bocconi, and the Grid BlueSky Training Program. Please refer to the table below for
details.

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PROGRAM NAME AND
DESCRIPTIONPROGRAM OBJECTIVES/
BUSINESS BENEFITS

School of Business
Development (Enel GreenPower and Thermal
Generation)% OF FTEs WHO
PARTICIPATED IN THE
PROGRAM

The program involves 12 countries (Brazil, Chile,
Colombia, India, Italy, Morocco, Peru, Romania,
South Africa, South Korea, Spain, and the USA)and is aimed at developing the skills neededto achieve the goal set in the Strategic Plan,
Training and development which is to add approximately 13.4 GW ofprogram for the Business renewable capacity between 2024 and 2026.
Development (BD)Specifically, the program equips participants
Function of Enel Green
with the necessary tools and skills to promote
Power and Thermal
innovation, proactivity, and efficiency,
Generation
while fostering leadership in the search forinnovative solutions in decision-making
processes within the BD Function of Enel
Green Power and Thermal Generation, making
it possible to increase market competitiveness(e.g., through Power Purchase Agreements).

The program contributed to the
100%(2)
achievement of the growth targets set
for 2023 by actively supporting thedevelopment of projects across Enel GreenPower and Thermal Generation, resulting
in a pipeline of 432.6 GW.

Grid Blue Sky Training
Program

In 2023, the number of training hours
was around 14,800, with roughly 7,000
participants.
A relevant metric of the program is thetraining ROI indicator. It assesses the
direct relationship between the specificinvestment made in this program and thecost savings (in terms of reduced Opex)
achieved by developing digitalization
solutions. The formula used is ROI of
training = (Cost savings achieved – Costof training program) / Cost of training
program). In 2023, the result was 153.

Digital training program
for the Enel GridsBusiness Line in Italy

A four-year project implemented throughout
Italy from 2020 to 2023 aimed at driving thetransformation of Enel Grids’ processes bydeveloping new skills in the field of digitalsolutions to increase operational efficiency inmanaging electricity grids.
It focuses on four areas: Asset Owner, Asset
Operator, System Operator, Customer
Engagement.

Training involved 94% of the workforce with 3.1 million
hours of training, amounting to more than 48 average
hours per capita (more than 47 average hours per capita in2022). Of these, hours dedicated to up/reskilling amounted to about 1.4 million, or 45% of the total, while thosededicated to human skills amounted to about 400,000, or13%. In 2023, the total cost of training was of approximately 27 million euros, with an average cost per employee of
418 euros.
Approximately 480,000 hours were devoted to digitaltraining, which accounts for over 15% of the total train-

POWERCODERSPROJECT
Diversity, in all its forms and manifestations, isan essential value, and training is the enabling
factor that accompanies the energy and digitaltransformation process, as well as offering concrete
job opportunities, also through partnerships and(2) The percentage indicates the number of eligible FTEs for the relevant activity.

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Sustainability Report 2023

100%(2)

ing hours. This is a slight increase on the previous year
(430,000 hours or 14%) with the goal of reaching 20% by2023. Training was provided primarily through microlearning, which allows it to be delivered more flexibly and frequently, engaging more people while reducing the total
number of hours. Digital training is largely integrated withother training courses, such as technical and safety training, and is an integral part of specialized and non-specialized training, therefore helping the Company to effectively
address technological challenges.

collaborations such as the one launched in Italy with
Powercoders. Powercoders is the first computer
programming (coding) academy for refugees andother individuals, founded in Switzerland in 2017. It
has since expanded to Spain and Italy with the aim ofpromoting integration, equal opportunities and job
placement in order to meet the needs of companies
by providing adequately trained IT professionals who
are not easy to find on the labor market.
After collaborating for the first time in 2022, whichallowed the Company to become an integral partof the project, enabling young people and women

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who are struggling to enter the world of work toparticipate, Enel welcomed four of the 25 students
who received their certificate and offered them theopportunity to gain work experience through aninternship in the Company. One of them went on tosecure a permanent job last year, which is what theinitiative aims to achieve. Firmly convinced of thevalue and innovative nature of the project, and driven

by the Group’s goals of inclusion, enhancementof cultural diversity, promotion of talent and equal
opportunities, it was confirmed that the Company
would renew this collaboration and would support theinitiative in order to form a new class of students whowill be given the opportunity to obtain certificationand enter the world of work.

Innovating with and for people

listening, through courses on emotional intelligence,creative problem solving, agile, design thinking, andlean startups. A large portion of the training was
conducted internally with colleagues from the Idea
Hubs and Innovation Ambassadors (who voluntarily
dedicate part of their work time to promoting
innovation at Enel). In 2023, in order to promotecreativity and lateral thinking, the Enel Idea Factory
project was resumed to support all corporate areas insolving business challenges by applying co-creation
methodologies and creative techniques.

Enel has continued the initiatives it has developed
over the years to strengthen the Culture of Open
Innovation globally, with the aim of creating a fertile
environment for collaboration and innovation within
the Company, promoting and enhancing diversity ofthought, which is a key factor for creativity.
Numerous activities have been organized to provide
colleagues with skills and knowledge on innovative
ways of working, focusing on creativity, idea
generation, collaboration, customer centricity andAppendix

Valuing and enhancing people
In 2023, the process of qualitative and quantitative performance appraisal saw the engagement – as always – ofGroup people at various levels in a process of exchange
and constant discussion that shifted the focus towards
the organizational network as a model for growth andself-empowerment rather than pursuing a hierarchicalmodel.
The global evaluation model is the Open Feedback Evaluation (OFE), which encourages constant listening andexchange of feedback on skills acted upon and results
achieved, all aimed at enhancing everyone’s talent to build
a constructive, transparent and no-stone-unturned exchange between people, networks and managers, in fullcompliance with the Enel Code of Ethics.
The program, which includes all eligible individuals(3) in theGroup, is divided into two semesters. At the end of eachsemester, managers and employees will hold discussions.
This tool consists of three interdependent dimensions:• “Talent”, which refers to showcasing one’s individual skills;• “Generosity”, intended as the propensity to enter into

relationships with others, dedicating time to acknowledging talent and getting involved in turn, requesting
feedback proactively, thus generating a mechanism ofindividual and collective growth;• “Action”, i.e., the ability, as assessed by managers, of
their staff to achieve professional goals based on those
assigned by the manager or proactively proposed by
the staff themselves.
In 2023, the following initiatives were continued with thegoal of increasing people’s value:• Job Shadowing, Mentoring and Coaching, for raisingawareness and expressing talents. The courses conducted enabled people to increase their network of relationships, exchange ideas and points of view and fostered self-learning, inter-culturalism and the sharing ofexperiences and skills;• empowerment paths for new managers to help them
become more aware of their talents, skills, aptitudes,(3) Eligible and reachable: those who have a permanent contract and were employed and active in the evaluation period of 2023.

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193orientations and aspirations, supporting them in taking
on more complex organizational roles.
In this context, the same criteria were applied to the annual
succession plan for managerial positions, aimed at achieving inclusion and enhancing diversity, taking into accountthe Group’s commitments, with a special focus on gender,
thus allowing an increase in the percentage of female successors (47.2% vs 46.1% in 2022 in Management plans and50.4% in Top Managerial plans vs 50% in 2022).
As part of its commitment to valuing its people, thisyear the succession process was also extended to key

non-managerial positions up to the CEO-3 level of the organization. This led to growth in the number of “people
identified as successors”, and ad hoc development andtraining initiatives were implemented, increasing engagement and proactivity.
Out of the many initiatives for successors, a global initiative was reserved for all those under 35 years of age withappointments’ pipeline in Top Managerial plans to raiseawareness of behaviors and motivational drivers, and toprovide a key opportunity for integration and networking
among colleagues from different countries.

Listening and dialogue
2-29
Enel has always been keen to promote initiatives aimed
at listening to employees. In 2022, the first Global Inclusive Survey was launched to explore, at all organizational
levels, the general perception of people’s inclusiveness,
contextual inclusiveness, fairness and non-discrimination,awareness of inclusive behaviors, psychological safety, theeffectiveness of actions taken to address these issues, aswell as to gather valuable insights to define strategies andpriorities, and planning the steps to take on the road toinclusion (see the section “Uniqueness and care for innovation and well-being”).
Additionally, Open Listening, a global listening channel,
was launched at the end of 2023 with the goal of surveying
the corporate climate. 75.6% of the Group’s employees responded to the survey, providing useful insights into theirmood, well-being and job satisfaction through listening on
issues relevant to the Group (including work-life balance,
networking, training, diversity and inclusion), with an overall job satisfaction (engagement) rate of 89.6% of those
involved.
A further essential element for people in the Company are
People Partners, people trained in listening and dialogue,
able to grasp individual aspirations and integrating themwith the organization’s needs.
Moreover, Enel considers internal communication a mainstay in the creation of corporate culture, people growth
and the growth of the organization, stimulating and promoting the exchange of information, know-how and experience. Internal communications are the main vector todisseminate the Enel strategy and the objectives identified
for the near future.

Uniqueness and care to ensure innovation and well-being
3-3

405-1

Enel believes that paying attention to uniqueness and caring for people are of crucial importance for promoting
well-being, boosting motivation, and driving creativity
and innovation, so as to achieve valuable results for bothindividuals and the organization as a whole.
In 2023, in addition to placing great emphasis on listening,
the Company also launched initiatives to promote a culture of inclusiveness at all levels of the organization and tovalue various aspects of interpersonal diversity.
In 2023, the Global Inclusive Survey was launched, withcomplete anonymity and ensuring freedom of expression
for all, to which 48% of eligible people responded (about
30.000 of respondents out of more than 61,000 people in
the Group).

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The survey results show a good level of perceived generalinclusiveness of people, with the average respondent rating
this aspect at 4.5 out of 6, and 87% of people gave a positive evaluation. They are above average and in descendingorder: perceived inclusiveness of colleagues, attention toand respect for diversity, inclusiveness of managers, perceived psychological safety, and inclusiveness of Management. Regarding the investigation of the level of attention
to and respect for diversity, people also generally expressed
above-average and distinctive evaluations for social support and freedom of expression, regardless of diversity dimensions: people reported that they could easily ask theircolleagues for help and that they felt free to express theirown opinions, even if they differed from those of others.

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One of the key findings from the analysis of the survey
data is that people feel more included and behave in amore inclusive way when they feel comfortable in a psychologically safe environment and are supported throughspecific organizational actions that can enhance theiruniqueness.
The results of the Global Inclusive Survey will be used todefine an action plan aimed at improving inclusion within
the organization.
The networks and/or communities within the Group (Employee Resource Groups – ERGs), which promote listening
and dialogue on various topics related to inclusion and diversity, are playing an increasingly important role: sharing
spaces, with a focus on issues such as women’s empowerment, parenthood, caregiving, disability, intergenerationality, interculturalism, and LGBTQ+ communities.
Listed below are the main ERGs active in the main countries where the Group operates.
In Spain, with Endesa PowerHer, Comunidad LGBTI, Comunidad Diversidad, and Be Talent Employee, issues related to gender, LGBTQ+, disability and age are addressedby promoting a culture of inclusion, free from all forms of
discrimination, at all levels of the organization.
In Chile, the community Un equipo con orgullo provides

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Appendix

space for discussion with the aim of building a more tolerant, empathetic and inclusive society. The Woman Innovation Lab (WIL) is a network designed to actively contributeto the professional development and leadership of women
through innovation.
Several ERGs have been active in Brazil for a long time, including Gender community (gender); People with Disability community (disability); Color Energy (cultural diversity);
LGBTQI+ community and Generations community (intergenerationality).
In Mexico there are active ERGs such as Yin Yang (gender),Anne Sullivan (disability), Chontalli (ethnicity and cultural
diversity), Just Be (LGBTQ+), Beyond Generations (intergenerationality), and Parenting (caring), which have heldtalks on topics such as D&I and psychological safety, andhave conducted external visits and held a cross-ERG event
involving the Management.
In the USA and Canada, five groups regularly address themost relevant issues through meetings, LinkedIn campaigns and newsletters, promoting inclusion and a senseof belonging: cultural and ethnic diversity with Cultural Power, LGBTQ+ issues with Pride in Power, veteranswith Proud to Serve, gender with Women EmPower, andwell-being with Empowerment and Balance.

The path to inclusion at Enel
The steps leading up to today began in 2013 with the publication of the Human Rights Policy (updated in 2021), followed in 2015 by Enel’s adherence to the seven Women’s
Empowerment Principles (WEP) promoted by UN Global
Compact and UN Women and the simultaneous publication of the Diversity and Inclusion (D&I) Policy. This policy
makes explicit the principles of non-discrimination, equal
opportunities, dignity, work-life balance and inclusion of
every person, beyond all forms of diversity. In 2019 theWorkplace Harassment policy was added, introducing thethemes of respect, integrity and individual dignity in theworkplace in the prevention of all types of harassment,
principles that were the basis of the Statement against
Harassment in the workplace, published on Enel’s website
in 2020(4). In 2021, the Global Digital Accessibility Policy
was issued to ensure equal access to digital informationand systems.
Governance on the issues of uniqueness and people careis entrusted to a dedicated unit at Holding level, within the
People & Organization (P&O) Function, which has the task ofdefining and implementing initiatives at global level, ensuring the coordination and monitoring of local events and thesharing of best practices. Moreover, at the local level there
are specific “Equal Opportunity Committees” in Italy andSpain, in which the social partners also participate, which
contribute to the identification of needs and the proposalof solutions on inclusion issues, while in Colombia, Central
America and Peru there are specific Diversity & Inclusion
Committees that direct and monitor activities on D&I issues.
The growing focus on these issues is also evidenced by
the activation of alliances and collaborations with the external ecosystem of associations and networks, which arecommitted to supporting companies and institutions. In
many countries, there are active partnerships with international organizations that operate in different countries
and regions or are in the process of internationalization.
In 2023, Enel actively participated in the D&I and Well-being round tables of the World Business Council for Sustainable Development (WBCSD) and of Business for Inclusive Growth, the partnership between OECD and thecoalition of CEOs of companies united by their commitment to tackle inequality of income and opportunity.
Cooperation on cross-cutting issues also continues: Italyis part of the UN Global Compact Network, is associatedwith Fondazione Sodalitas and is a signatory of the EU Diversity Charter, while Brazil, which is also part of the UN
Global Compact Network, collaborates with the Ethos Institute on equity and human rights.

(4) https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/enel-statement-against-harassment.pdf.

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On gender issues, Brazil, Costa Rica and Colombia aresignatories of the WEP (Women Empowerment Principles), Colombia is certified Equipares, the USA and Canada are active in the Target Gender Equality network andthe Women’s Energy Network, while Italy has participatedin the Target Gender Equality Accelerator round tables. In
2023, Chile participated in the Global Compact Chile ODS5Working Group and worked with the Ministry of Energy on
two initiatives: Energía + mujer, which aims to increase thepresence of women in the energy sector through various
actions, such as strengthening women’s leadership, andthe Mesa Regional de Género y Energía, created with theaim of forming alliances and promoting cooperation andcoordination to narrow the gap in access to training andwomen’s involvement in the energy sector.
Enel also supports the internationalization of local associations and networks. In Italy, for example, it is involved
in inter-company working groups to expand the scope ofaction of Valore D, of which it is a supporting partner, andof the Elis Consortium, which supports the Italian national
education system in training young people, with a particular focus on girls and their access to STEM professions.
The aim is to help reduce the gender gap and create the
new technical and professional profiles needed to makethe energy transition fair and inclusive. An initiative with
Elis was also developed in 2023, with the participation ofsome Enel women professionals who held orientation sessions in several Italian schools.

Data-driven inclusion
Spreading the culture of inclusion at Enel also means
measuring phenomena to help define precise actions andobjectives. As a result, a significant portion of the activities
are aimed at the progressive digitalization of D&I-related
analysis and reporting processes. A human-centered approach, embodied in the definition of a specific diversity
policy regarding the composition of the Board of Directors(5) and specific objectives and actions published in thePlan and in the Sustainability Report, approved by the corporate bodies.
Specifically:• balance the percentage of women in selection processes;• increase the representation of women managers andmiddle managers and that of women in management
succession plans;• increase the number of female students involved in
STEM awareness initiatives;• promote projects for the inclusion of people with disabilities at all stages of the employee journey;• promote the dissemination of a bias-free culture andinitiatives that are mindful of intercultural diversity.
The commitment and transparency shown in favor of gender inclusion were confirmed in 2023 by Enel’s appearance in the main rankings, ratings and ESG indices:• the Group of subsidiaries Endesa and Enel Chile wasincluded for the fourth time in Bloomberg’s Gender
Equality Index, which recognized in particular innova-

tive practices in terms of gender diversity, conciliationand harassment prevention;• confirmed for the fifth consecutive year as being among
the Top 100 companies, and first Italian company of the
Gender Equality Global Report & Ranking of Equileap
for promoting gender diversity, well-being, work-life
integration and ensuring a working environment that
respects human rights and is free from harassment;• Enel SpA was confirmed in the Refinitiv LSEG Diversity
and Inclusion Index in first place and Enel Americas SA
in second place in the industry grouping “Electric Utilities and Independent Power Producers”, and Enel SpA
in 13th place in the Top 100 for initiatives in terms ofgender diversity, disability and work-life balance.
In 2023, Spain was once again awarded the “Distintivode Igualdad en la Empresa” by the Ministry of Equal Opportunities and the “Distintivo de Igualidad” award by theClub de Excelencia en Sostenibilidad. It also received the“Equipos y talent” award, given by the organization tocompanies committed to promoting women in leadership
positions. Additionally, it received the “DCH Up Spain Emotional Salary Award”, which is given to companies that take
into account the personal, family and professional needsof their employees through adequate remuneration, witha positive impact on productivity and satisfaction.
In 2023, Enel was ranked as the Best Place to Work for Disability Inclusion in North America, earning the top rating in
the Disability Equality Index® (DEI®).

(5) In 2018, the Board adopted a specific “Diversity policy of the Board of Directors of Enel SpA”: https://www.enel.com/content/dam/enel-com/documenti/
investitori/governance/statuto-regolamenti-politiche/en/diversity-policy-of-the-board-of-directors.pdf.

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A widespread inclusive culture
Enel has always promoted a culture of inclusion at all levels
and in all organizational contexts through extensive communication and awareness-raising activities that focus each year
on a specific theme, inspiring campaigns and events.
In addition, to fight prejudice and promote non-discriminatory behavior, the related awareness campaign was relaunchedin 2023 in all countries where the Group operates. Specifically,
the “Beyond Bias” educational initiative makes it possible toidentify the main biases that can be encountered in the workplace. With an ironic approach, the course suggests ways
to prevent them, and by the end of 2023, more than 49% ofassignees and about 38% of Managers and Top Managers
had participated.
This is complemented by the educational initiative Harassment in the Workplace, which describes several forms ofharassment and discrimination related to age, disability
and sexual orientation. Since 2022, it has been assigned
to the entire corporate workforce(6) and has so far involved
42% of assignees. On the other hand, at country level,
there are several initiatives for the prevention of harassment, such as the awareness-raising campaign aimed atblue-collar workers in Brazil.

The value of generations
In an environment where multiple generations with different
expectations, lifestyles, and skills are living together, it is increasingly important to facilitate the exchange of skills andexperience in order to create value for individuals, companies,
and institutions.
In 2023, an ad hoc training course was launched for specific senior figures to facilitate intergenerational exchange on
a global scale. Here are the most important initiatives developed on this topic in the different countries.
Italy held the webinar “Siamo persone diverse? Di più. Siamointersezionali!” (Are we different people? More. We are intersectional!): building on this concept, diversity was addressed
across multiple dimensions, combining generations and gender. Re-generation, the free university course for people over

RE-GENERATION

Since 2021, Enel has been offering its senior employees
the opportunity to acquire new skills linked to the energy
transition, free of charge and during working hours,
through short learning programs organized by theInternational Telematic University Uninettuno. Coveringscientific areas related to the digital economy, law inthe digital society, and IT and digital technologies, thecourses last 8-10 weeks, and students are awarded
university credits (CFU) that are applicable to a degree
course. In 2023, the subject area of cyberpsychology

the age of 45, now in its second edition, touches on various
topics, from Big Data to the Circular Economy, from law indigital societies to artificial intelligence (for further details see
the dedicated box below). The “Nuestros Mayores Valores”
initiative continued in Spain, which recognizes the talent of
more experienced colleagues, while in Brazil the “Roda deConversa com Jovens” initiative was launched with the aimof listening to and meeting young people and professionals.
Several training initiatives were implemented for students. For
instance, in Chile, the “Incorporación de alumnos/as de prácticas” program engaged university and high school students
in company internships with senior colleagues. In Colombia,
young talents followed internal development paths with a focus on soft and technical skills.

was added, and the number of courses increased from13 to 21 (from digital marketing to e-commerce, fromtopics of a legal nature to Fintech, as well as big data,
Artificial Intelligence, etc.). The target audience was also
expanded to include people over the age of 45, insteadof just those over 50.
The aims of Re-Generation are to offer professional andacademic training (upskilling/reskilling) opportunities in
the fields of technological innovation and digitalizationin order to narrow the generation gap in frontier skills of
the digital society and enhance personal experience.
Re-Generation reached a potential audience ofapproximately 15,000 individuals with at least a highschool education. More than 2,000 colleagues signed up
for the two editions held in 2021 and 2023. Interestingly,
the area that attracted significant interest was
cyberpsychology.

(6) Except for the USA and Canada where courses required by local regulations are provided.

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Cultures in dialogue
With 79 nationalities and 24 languages, Enel considers cultural and ethnic diversity to be an extraordinary asset andis committed to promoting and enhancing knowledge, relationship and cross-fertilization between different cultures.
In order to carry out a comprehensive mapping of ethnic and cultural diversity, please note that in most of thecountries where the Group is present there are legal andprivacy protection constraints that do not allow its collection, while in Argentina, Costa Rica, Guatemala, Panama,
Mexico, Peru, South Africa, Canada, Brazil and the USA it is
only possible to obtain such information on a voluntary basis. Additionally, in European countries, data privacy laws
such as the GDPR prohibit the collection of evidence on
this topic. However, in countries such as the USA, Brazil,
and Argentina, where it is allowed, a comprehensive study
will be conducted in 2024.
Several countries have launched specific initiatives infavor of intercultural diversity in its different forms: Italy
hosted the intercultural awareness webinar titled “La Di-

versità non ha Uguali” (“Diversity has no equal”); Brazil initiated the “USP diversa” project in collaboration with the
University of São Paulo to address the issue of university dropouts, sponsoring 25 scholarships and internships
at Enel for 25 black and indigenous students; and North
America held a discussion session to raise awarenessamong indigenous communities about energy transitionand sovereignty. A training course was also implemented
in Colombia, Central America (Panama, Costa Rica andGuatemala) and Mexico on integration and leadership in
multicultural contexts in the workplace. South Africa, Morocco and Vietnam launched a dissemination program oninterculturality in the workplace.
At a global level, a mentor is provided to foster the integration of expatriate colleagues in the destination countries.
Moreover, the online course WIRED – Connecting Intercultural Skill is available to all colleagues to enhance their sensitivity and interpersonal communication, reflect on biases,
and strengthen skills that foster intercultural inclusion.

LGBTQ+ uniqueness
LGBTQ+ issues are receiving increasing attention internationally, and many Group countries have promoted measures, awareness-raising and training initiatives, and communication campaigns to reflect on inclusive language
and shed light on stereotypes.
With regard to inclusive measures, Italy grants to same-sex
couples in civil marriages parental leave and the system ofprotections and facilities for parental and care purposes(parental leave for childcare, leave and absences recognizedfor parents with severely disabled children and in the eventof death or severe infirmity of the child). Guidelines are inplace in Italy and Chile which establish internal procedures
to identify people or roles dedicated to assist the person
and define nature and type of support offerer by the Company (administrative, organizational, psychological, etc.).
To promote an inclusive culture, various countries havealso launched a number of initiatives to celebrate days
dedicated to inclusion. Spain conducted a targeted communication campaign and hosted a conference featuring
a prominent Olympic athlete; Chile enhanced the activitiesof the ERG Comunidad Energía con Orgullo; Colombia established a multi-company alliance with public and private
entities centered around the theme of “Talents without labels” as well as various communication campaigns, including #TalentosQueBrillan and #EmpresasSinSesgos.
Collaborations with external networks have also continued, including REDI (Red Empresarial por la Diversidad e
Inclusión LGBTI) in Spain, Parks Liberi e Uguali in Italy, Pride
Connection in Colombia, Chile and Mexico, and the Human Rights Campaign in the USA and Canada, to promote
an inclusive work environment and value talent regardlessof identity, gender expression, and sexual orientation.

An action plan to overcome the gender gap
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Enel’s efforts to overcome the gender gap and ensure pay
equity continue with tangible results through actions andinitiatives that influence all phases of the journey of women in the organization: from representation at entry level toempowerment and development in positions of responsi-

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bility, paying attention to various relevant moments in life,
such as becoming parents and personal or family care, andfocusing on the next generation of women who will take onleadership roles in the workplace in a few years’ time.

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GENDER GAP: the action plan,
direct and indirect measures
The Board of Directors of Enel SpA consistsof 44.4% women.
The gender gap action plan consists of measures that
directly and indirectly affect equal pay. In fact, thegradual increase in female representation at different
organizational levels is a prerequisite for naturalgenerational exchange and thus for achieving parity inremuneration over time.
Enel guarantees equal pay for equal roles andseniority for all new managers through internal
development.
• At the end of 2023, women accounted for about
23% of the Group’s entire workforce;• in 2023, 26.2%(7) of managers were women (24.9%
in 2022) and held 27% of executive positions(CEO-1) (4 out of 15), while 33.1% of middle
managers were female (32.6% in 2022);• by 2023, the presence of women in management
succession plans was steadily increasing: 47.2%
female successors in management plans and50.4% in Top Management plans;• in the past year, the percentage of women in theGroup working in STEM roles was 20% compared
to 21% in 2022;• selection processes are closely monitored toensure a fair balance of the two genders in thecandidate pools, with a rising trend in the last five
years (52% in 2023, +13 pp compared to 2018)(8).
The Long-Term Incentive Plan 2023 supports thesetrends by confirming a performance target, with aconfirmed weight of 10% of the total, represented
by the “percentage of women in Top Management
succession plans” at the end of 2025, with the aimof strengthening and giving continuity to a policyof preparing a suitable audience for managerial
appointments in the near future. The target curve
envisages an entry level of 45% women in Top
Management succession plans by the end of 2025,with an over-performance of 50% to ensure gender
equity.

4

Performance 2023

5

Appendix

The processes for managing succession plans andsalary reviews are governed by specific policies, andconstant monitoring of remuneration for all positions
is carried out. A dedicated budget has been allocatedbeginning 2019 to ensure equal pay for equal work, incases where a mismatch is found.
For the purpose of equal pay monitoring, the adjusted
Equal Remuneration Ratio (ERR) relative to the total
workforce (calculated as the average of the ERRsof each category weighted by the weight of eachcategory in the total workforce) for the year 2023
is 94.9%. As for the ERR of managers, the overall
index was stable at 81%, in line with previous years.
The managerial Equal Remuneration Ratio (ERR)
methodology, which has traditionally been used toverify pay equity between women and men in the
managerial workforce, is based on the aggregate
average of female managers’ pay compared to theaverage of male managers’ pay. In addition to being
influenced by the ever increasing number of female
managers over the years, whose shorter tenure,taking into account their seniority in the position,affects the average gender pay in the short andmedium term, this method does not allow for certain
determining factors to be taken into account, suchas the experience and specific skills acquired in theposition, as well as the specificities of the various
countries in which the Group operates and on which
the calculation is based.
To confirm its commitment to these issues, since2021 Enel has been participating in the “Equal by 30”
international campaign promoted by Clean Energy
Ministerial (CEM), the initiative whereby various public
and private sector organizations have committed topromoting gender equality in terms of pay, leadershipand opportunities in the clean energy sector by
2030. Three specific commitments have been madeto raising the awareness of an increasing numberof girls towards STEM disciplines and professions,fair representation of women in selection shortlists,and growth in the number of women in managerial
positions.

(7) Women working in managerial roles (managers and middle managers) in revenue-generating business areas account for 29.1% of the total number ofpeople in these areas, up from 28.3% in 2022.
(8) Selection processes involving blue-collar workers and similar technical roles are not included (as of 2021), nor is the USA and Canada perimeter, due to local
anti-discrimination legislation that does not allow gender monitoring at the recruiting stage.

Enel people

199

As far as the parental dimension is concerned, the global “Parental Program” aims to promote organizational andpersonal awareness of the culture of parenting and to reconcile personal and professional needs in this phase of life.
The program involves a structured interview process between the new parent, the manager, and the People Business Partner, both before and after maternity or paternity
leave, as well as a single information point that offers all
the information, services, and training initiatives relevant infacilitating a return to the Company. In the various countries where the Group is present, this program is complemented by further local initiatives to support parenthood.
Commitment to the promotion of women’s presence has
been growing over the years to supporting initiatives that
promote the presence of women in study and professional
pathways in STEM fields, in conjunction with schools, universities and institutions, to overcome gender stereotypes
and disseminate the importance of the technical and scientific culture, increasingly integrated with the humanistic
dimension. In 2023, these initiatives involved more than
7,800 female students worldwide, and over 37,000 in thepast seven years(9).
There are also numerous STEM initiatives implemented locally. In Italy, the “Back to School” program is now in its
second edition: female colleagues with STEM degrees
serve as Enel ambassadors, meeting with high school
students to promote the value of technical and scientific education. Once again this year, Enel launched a con-test and offered the winners financial contributions tocover university fees for the first year of enrolment in a
STEM faculty. In Italy, STEM Workshops for employees’
children aged 7 to 10 are currently underway: the goal is
to introduce them to IT technologies and the basics ofprogramming. Of particular importance in Spain was theimplementation of three STEM projects from elementary
school to high school: “Desmontando estereotipos”, “Ellate Cuenta” and “Back to school”. The three initiatives aredesigned to encourage girls to pursue STEM careers inorder to foster female talent and bring more women withtechnical and scientific backgrounds into the Company. In
the USA and Canada, the “Girls Belong” in STEM campaign
was launched to promote the importance of women in thefield of scientific and technological disciplines.
Multiple cultural and managerial development initiatives havealso been implemented to support women’s empowerment,
including mentoring, coaching and shadowing programs, aswell as training, upskilling and reskilling courses.
The global observatory of all gender equality and women’s empowerment initiatives has allowed the Company
to gather best practices for women at all stages of theirjourney within the organization.
These include, for example, the “Programa Liderazgo Femenino” in Chile, which promotes women’s empowerment,
and the “TODAS Plataforma” digital platform in Brazil. The
latter is available to more than 2,000 women employees at
Enel and provides inspirational leadership content.

The value of disability
Enel is committed to ensuring the full inclusion of every
person, in line with the approach indicated by the relevant
UN Convention and with the Enel Valuability© model, according to which inclusion generates innovation and increases the possibility of attracting and valuing people,
also transforming processes and products.
The Group employs over 2,000 people with disabilities
across various countries, with more than 75% of thembased in Italy.
Enel provides tools, services, working methods and initiatives
to create an inclusive working and relational context for all,which allows work activities to be carried out in full autonomy, also thanks to a “focal point” for Enel people with disabilities in all countries.
Several global initiatives have been implemented worldwide, such as:• the extension of inclusive travel services to ensure thatcolleagues with disabilities have an inclusive accommodation and travel experience when traveling for work;••

the service is currently available in Italy, Spain, Brazil,
Colombia, Chile, Peru and Mexico, covering 88% of theGroup’s employees;
participation in the Generation Valuable project promoted by the Valuable500 network with the aim of
spreading a culture of inclusion and empowerment ofpeople with disabilities through mentoring meetings
between talented colleagues and managers;
implementation of the “Accessibility and Design for allawareness” training course, a global awareness-raising
initiative to train and develop an inclusive approach in all
business processes and contexts. The course aims to increase awareness among the corporate workforce about
the application principles of Design for all, a design methodology for creating spaces, products and services thatare accessible to all. Developed in collaboration with the
Polytechnic University of Milan, the course consists of six
video clips that are available in Italian, English, Spanish andPortuguese on the Company’s training platform.

(9) From 2022, the figure includes initiatives involving only primary and secondary schools.

200 Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
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Stakeholder engagement andmateriality analysis

Last but not least, as noted, Enel North America earned
the top rating in the Disability Equality Index® (DEI)(10), an
improvement over the previous edition, indicating a growing focus on this topic with several projects currently un-

4

Performance 2023

5

Appendixderway. DEI, a joint initiative of the American Associationof People with Disabilities (AAPD) and Disability:IN, is considered the world’s most reliable benchmarking tool formeasuring disability inclusion in the workplace.

Hybrid working and well-being
In 2023, more than 36,000 people worked in hybrid
modes, alternating between remote working and in-person activities. A transformation in the way work is done
began in 2016 and was later extended to a global scale,thanks to the Group’s impressive technological evolution.
In 2023, the New Way of Working experimental agreement signed with the national trade unions in 2022 wasfurther implemented for non-executive employees in Italy.
ITALY(1)SPAIN

Under this agreement, on-site working days for so-called“high-synergy” activities are to be alternated with remote
working days. In 2023, the Group’s other main countries
also continued to implement trade union and/or individual
agreements regarding hybrid work.
To date there are many flexibility measures active in different countries, as shown in the following table.
NORTH AMERICALATIN AMERICA(2)OTHER COUNTRIESPART-TIMEREMOTE WORKINGTELEWORK(1)SEASONAL SCHEDULE
TIME BANKFLEXIBLE TIMESHORT WEEK
(1)

In Italy, teleworking involves working mostly from home, with one or two returns to the office per week. In Latin America, it means working only one or twodays per week from home.
(2) Argentina (smart working); Brazil (smart working, time bank, flexible time); Chile (smart working, flexible time); Colombia (smart working, time bank, flexible
time, short week); Peru (smart working, flexible time, seasonal schedule, short week).

Caring & Well-being for all
3-3

401-2

Enel promotes the value of care in all situations, including
contingencies, which an individual may be required to deal
with during their working life, defining benefits and ser-vices that support work-life integration. A few examples of
initiatives in the different countries where the Group maintains a presence are provided below.

The framework and global well-being
initiatives at EnelThe year 2023 was a year of significant development andconsolidation of the Well-being strategy of the Group.
The framework defined in co-creation mode inprevious years identified eight pillars that influencepeople’s satisfaction with their overall well-being:(10) https://disabilityin.org/what-we-do/disability-equality-index/.

Enel people201• psychological well-being, “feeling comfortable inoneself”;• work-life harmony, the ability to achieve a
harmonious balance between the different areas ofone’s life;• physical well-being, a commitment to continuallycare for one’s physical health;• social well-being, a sense of connection andenrichment resulting from belonging to relational
networks;• economic well-being, the level of satisfaction withthe economic situation of the household;• sense of protection, a sense of security perceived
with regard to the occurrence of unpleasant events;• ethical well-being, the level of satisfaction with thevalue, meaning and purpose of one’s life;• cultural well-being, “feeling encouraged to growand learn new things”.
These factors, along with the level of perceived
stress and the individual’s resilience and coping
skills, affect overall perceived well-being and,
consequently, motivation and performance. Data
is analyzed – and action plans are subsequently
developed – by profile (personas: e.g., parents,
caregivers, age clusters), as well as by team,
Function, Business Line and Countries and Regions.
After analyzing the results of the Well-being &Motivation 2022 survey, webinars were held in
various countries to share the results, which werecoordinated by the Management. In 2023, several
global initiatives were also launched in order toimprove the well-being of people, teams, andmanagers within the organization.
Specifically, the “Well-being leaders, Happy teams”
project was launched based on an analysis of theperceived level of well-being of teams. The project
defined a new intervention mode to support teams
with low perceived well-being through dedicatedlistening sessions and by defining and jointly
implementing team well-being plans.
To enhance the skills of team leaders and managers
in the area of well-being and mental health, an
additional project was launched to identify, byobserving and listening to the leaders of teams witha high level of well-being, the characteristics andvirtuous behaviors that need to be disseminated in
the Company in order to strengthen well-beingfocused leadership.
To promote a culture of well-being and identify

202

Sustainability Report 2023

areas for improvement, the first team of well-being
ambassadors was formed and trained in the Group’s
main Countries. An ambassador is tasked withlistening to employees, promoting behaviors aimed
at achieving well-being, and providing support tothose who request it.
In 2023, Enel’s Global Well-being Program,accessible through the Company’s portal, was in its
first year of full operation. The program aims to raise
everyone’s awareness of their own level of well-being
by involving them through self-assessment tests,
webinars, newsletters, and other dedicated activities.
The program is linked to a mechanism that rewards
the virtuous behavior of colleagues who regularly
participate in the program every six months. In 2023,
more than 26,000 employees (43% of Enel people)
accessed the program, and more than 4,000 awards
were granted worldwide.
At the local level, various services and initiatives
are in place to provide tools for personal and familycare with a focus on mental and physical well-being.
In particular, psychological support services are
currently active in Italy, Spain and Portugal, Brazil,
Argentina, Colombia, Chile, the USA and Canada,Peru, Costa Rica, Guatemala, Panama, Mexico, andGreece, available free of charge or on a subsidizedbasis to employees and, in many cases, to theirfamilies, covering more than 98% of Enel people.
Focusing on the physical well-being of people is apriority for the Enel Group. More than 90% of theGroup’s employees (Italy, Brazil, Chile and Spain) havepreferential agreements with sports center networks.
Other countries, such as Colombia, cover the costsof several networks in the country. Additionally,
the global CReW project (Enel Cycle, Run & Walk
Challenge) was launched to encourage people totake an active role in their sustainable physical wellbeing. In 2023, CreW reached 18 countries, involving
over 3,500 Enel participants who covered six million
kilometers by bike or on foot, resulting in savings
equivalent to a total reduction of 1000 tons ofcarbon dioxide emissions.
The new version of the Health & Well-being Policy,
which promotes prevention and supports healthy
lifestyles and behaviors aimed at achieving mental
and physical well-being while mitigating risk factors,
also incorporates the well-being framework,
supporting global initiatives and related indicators.

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2Enel’s commitment
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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

Caring & personal well-being
With regard to vulnerability, Enel has implemented the“MaCro@Work Caring Program”, a global program designed to support Enel people living with chronic illnesses.
It is centered around a network of Heart Managers, who
are People Partners that volunteer to actively listen to andsupport their “vulnerable” colleagues. The project provides
specific training and is currently active in Italy, Spain, Argentina, Brazil, Mexico and Central America. In 2023, Enel
decided to extend the project to those acting as caregivers for a vulnerable family member.
Several countries are addressing the topic of caregiving:in Italy, for example, there is a “Master Care” program for
caregivers in the Company, which provides support andassistance for Caregivers, a toolkit that gathers existingmeasures, services and agreements, and awareness-raising activities aimed at parents with sons/daughters who
have specific disorders. The goal is to assist them in devel-

oping greater self-efficacy and stress management abilities in various aspects of their daily lives. In Spain, the collective agreement includes measures to promote Worklife balance for individuals facing challenging situations,such as severe illness, and their family members.
Personal care and well-being services are available in all
countries. In Italy, several projects and partnerships havebeen established, aimed to promote sharing mobility andreduce dependence on private cars, especially in major cities. These initiatives include public transportation
subscription agreements that not only promote environmental sustainability but also offer money saving throughfinancial contributions provided by the Company. As forpsychological and economic well-being, for instance, theCanal Você program in Brazil offers a wide range of psychological, legal and financial services and support, which
are provided by a network of social workers available 24/7.

Family caring & well-being
In most countries services and support are provided, including financially, for childcare and focused on motherhood, such as breast-feeding rooms at Enel’s major sites.
In Italy, training sessions for parents are offered underthe “New Parents New Energy” program. The MAAMCHILD Platform is also active, which encourages people
to reflect on parenting experiences so that they can apply
them to their work. Family services such as financial support (school book bonus, contributions for kindergarten,schools and university, scholarships and conventions withschools) and “time-saving” services are also available, suchas babysitting, care for the elderly, and home support. The
MyWelfare program is available for employees earning lessthan 80,000 euros, which makes it possible to convert theCompany’s performance bonus into repayments, goods

and welfare services, resulting in a 35% increase in purchasing power (15% tax savings and 20% additional value
offered by Enel) compared to receiving the same bonus in
the payroll. In Spain, collective agreements include measures to ensure a healthy work-life balance for future parents.
A number of initiatives are available for the children andfamilies of employees. In Italy, for example, coding andscience workshops are held for the children of employees. The USA and Canada celebrate Family Day: on thisday, colleagues’ families are invited to the office to share
their working environment and raise children’s awarenessof renewable energy. During the summer holidays in Brazil,
Peru and Colombia, recreational activities are organized
for the children of employees.

Caring in the organization
With regard to parental measures, as a result of the analysis aimed at aligning the minimum duration of maternity
leave within the Group, from 2022 all countries have increased the duration of statutory maternity leave to meetthe minimum threshold of 80 working days, in accordancewith European legislation(11). In 2023, a similar analysis was
conducted on paternity leave.
In line with the care approach and to support the parental
experience, Enel offers measures in addition to the provisions of local legislation in terms of additional days ofleave and pay, with potential benefits in terms of work-lifebalance and caring for families.
With regard to maternity leave, the weighted average
number of weeks of fully paid maternity leave in total forcountries that account for over 90% of the global total
workforce (Italy, Spain, Brazil, Argentina, Colombia andChile) is 21.5 weeks, with the minimum offered in Spain (17weeks).
Enel grants more leave days than required by local legislation in over half of the Group’s main countries. Specifi-(11) See Council Directive 2010/18/EU of March 8, 2010: https://eur-lex.europa.eu/legal-content/IT/TXT/?qid=1414661428912&uri=CELEX:32010L0018.

Enel people203cally, the USA, Canada, Panama, Australia, Japan, Germany,
Taiwan and New Zealand have supplemented the statutory leave duration to reach the minimum threshold of 80
working days, in accordance with European regulations.
Besides complying with local laws, Brazil, Argentina, Colombia, Mexico, Guatemala, and Morocco offer an additional number of days equal to more than 30% of the total.
In terms of good practices supporting a healthy worklife balance and motherhood, many countries (Colombia,
Peru, Mexico, South Africa, Ireland, France, the UK, Morocco, Germany, Greece, and Vietnam) offer more flexibility and dedicated remote working solutions.
In terms of salary, where the total remuneration or part of
it is not guaranteed by local laws, Enel bridges the gap toreach 100% coverage. This is the case in Italy, Colombia,
Panama, Guatemala, South Korea, Australia, the UK, Japan, Costa Rica, Morocco, Canada, Taiwan, and New Zealand, while in all other countries, remuneration is already100% guaranteed by law. In Italy, Enel guarantees 100%coverage compared to the 80% required by law for thefive months of compulsory leave.
As for paternity leave, the weighted average number ofweeks of fully paid paternity leave in total for countries
that account for over 90% of the global total workforce(Italy, Spain, Brazil, Argentina, Colombia and Chile) is 5.5
weeks, with the minimum offered in Chile (1.2 weeks).
Enel provides additional leave days in certain countries(Italy, Spain, Brazil, Argentina, Colombia, Chile, Peru, India,
Mexico, Panama, Guatemala, Ireland, the UK, Costa Rica,
Morocco, Canada and Vietnam) and additional salary (inCosta Rica, Guatemala, Mexico, Panama and the UK). Enelcovers any pay gaps guaranteeing 100% pay, and in allother Group countries, remuneration is already 100%
guaranteed by law.
Specifically, in Italy, a trade union agreement grants
working fathers an additional 10 days of fully paid leave
as of 2023, in addition to 10 days (20 days for multiple
birth) of statutory leave.

204 Sustainability Report 2023

In terms of parental leave, the measures offered vary
greatly from one country to another. In Italy, the law provides for 10 months of parental leave, shared between themother and the father, to be taken before the child turns
12; if the father takes at least three months, it is increased
to 11 months. Enel’s collective bargaining agreement has
increased the allowance provided for by law, recognizing 90% for the first month (to be taken before the childturns 6 years old), 60% for 2 months (or 3 months, if thefirst month is not taken before the child turns 6 years old),which is non-transferable, due to the mother and father
respectively, and 45% for a further 3 months, to be taken
alternatively by the parents (in 2023, the law provides that
80% will be paid for the first month and 30% for the following months, while in 2024 80% will be paid for the first
2 months).
In 2021 in Italy, the Company introduced new measures tosupport parenthood for same-sex couples in civil partnerships who care for children, and in Peru health insurance
coverage was extended to same-sex couples living together for a minimum of 2 years.
Additional parenthood-related leave and permits arerecognized in Italy. In order to deal with particularly serious personal or family situations and to show solidarity,
Enel’s collective bargaining agreements allow employees
to transfer leave or rest periods (solidarity leave) to colleagues within the same company in order to provide
assistance to children, parents, spouses, civil partners orcommon-law spouses who require constant care or who
are facing very difficult personal or family circumstances.
Furthermore, the trade union agreement stipulates thatwhen colleagues donate leave days, the Company will
provide additional paid leave. In Spain, it is also possible
to take advantage of daily flexibility adapted to the temporary needs of the worker, in the form of a temporarychange in working arrangements, reductions in working
hours and leave for family care.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

Supplementary healthcare assistance andadditional pension coverage
3-3
The majority of countries where the Group maintains apresence offer supplementary health insurance policies atadvantageous conditions with respect to the alternatives
available on the market. In many cases, the Company provides benefits related to prevention and periodical checkups (see the chapter “Health and safety of people”).
For all Italian employees and their dependent family members, in agreement with the trade unions, in 1997 Enel set
up the Supplementary Healthcare Provision for Enel Group
Employees (FISDE), which disburses repayments and redemptions for healthcare expenses, promotes initiatives
for the disabled and individuals subject to socially challenging situations (drug addiction, alcoholism, learning
difficulties, psychosocial disorders, etc.) and sets up preventive medicine programs at Enel’s sole expense. Also in
2022, members were able to take advantage of symposia
with the Italian National Council of Psychologists (CNOP)
and Italian Psychoanalytic Society (SPI) for psychologicalsupport services. In line with the FISDE solidarity principle,
former Enel employees can also continue to benefit fromthe services offered by the Provision by continuing to pay
a membership fee.
Staff support measures also include the option of accessing
fixed-contribution and other pension plans, such as membership of mandatory or optional schemes and the award
of various types of individual benefits in services associatedwith post-employment benefits provision.
Supplementary pension coverage for Italian employees isprovided through the FOPEN and Fondenel pension funds,
which are financed through contributions, also paid by Enel.
The largest pension funds are in Italy, Spain and Brazil. The
Plan de Pensiones de los Empleados del Grupo Endesa
is currently active in Spain, while Brasiletros - Fundação
Ampla de Seguridade Social, VIVEST – Fundação CESP de
Seguridade Social, and FAELCE – Fundação Coelce de Seguridade Social are currently active in Brazil.
As at December 31, 2023, 87% of employees were covered by the Enel Group pension plan.

The level of coverage of non-salary benefits(12)201-3
The analysis concerns the entire Group workforce, showing a high percentage in terms of access to the main benefits.

Below are the main support initiatives and the extent of
their coverage of the Enel workforce.

Non-salary benefits 100% Enel Countries

2023

2022

Life insurance

99%

89%

Medical insurance

99%

94%

Pension Fund Membership

87%

81%

Additional parental measures (maternity, paternity and parental leave)

99%

94%

Meal allowances

89%

89%

Child support initiatives

95%

84%

Loans

96%

90%

Leisure and cultural initiatives

98%

87%

(12) Non-salary benefits are the series of goods and services provided by the Company in addition to monetary pay.

Enel people

205Industrial relations
2-30

3-3

402-1

Enel complies with the labor law in force in the various
countries in which it operates, with the fundamental principles of the United Nations Universal Declaration of Human Rights and with the conventions of the International
Labour Organization (ILO) concerning workers’ rights(freedom of association and collective bargaining, consultation, right to strike, etc.), systematically promoting discussion between employer and worker organizations andseeking a broad level of agreement and sharing of corporate strategies by employees.
Industrial relations activities at Group level continue tobe conducted in accordance with the model laid down in
the Global Framework Agreement (GFA) signed by Enel inRome in 2013 and renewed in 2023, with the Italian Federations in the sector and the global unions IndustriALLand Public Services International, and which is still considered a benchmark best practice for European andnon-European multinationals. The agreement is based oninternational human rights and business principles andis inspired by the best and most advanced transnational
industrial relation systems of the reference multinationalgroups and institutions on the international level, including
the ILO. One of the particularly significant principles of the
GFA is that of remuneration, whereby the minimum payment made to Group employees cannot be lower than thelevel established by the collective bargaining agreements
and applicable laws and regulations in force in the various
countries in question, in accordance with the provisions of
the relevant ILO conventions.
With regard to remuneration, Enel recognizes the importance of stable and reliable employment, and adopts andpromotes decent working conditions, as defined by the
ILO as “productive work that provides a decent income,ensures job security and the provision of social protection
services for workers and their families, allowing people tofreely express their concerns, organize themselves andparticipate in decisions that affect their lives” (ILO Recommendation Employment and Decent Work for Peace andResilience, 2017 no. 205). The Parties undertake to takemeasures to remove all obstacles to achieving full equal
opportunities and equal treatment. The Parties undertaketo ensure that all workplaces are free from discriminationand harassment. The principle of equal pay is also indicated by the Group’s Human Rights Policy, which stipulates
that all those who work along the entire value chain areentitled to remuneration in line with the principle of faircompensation for work, of equal pay between male andfemale labor for work of equal value, and stresses thatminimum wages are guaranteed, which are not less than

206 Sustainability Report 2023

those established by collective agreements and current
legislative and regulatory treatments of reference in force
in different countries, as established by ILO conventions. In
addition, the Code of Ethics also expressly provides thatupon the establishment of the employment relationship,each employee will receive accurate information relating
to characteristics of the role and duties to be performed,
and to regulatory and remuneration elements according
to the principles set out above. This information is presented to the employee in such a way that acceptance of
their position is based on an effective understanding andawareness not only of their duties, but also and above allof their rights (enshrined in the aforementioned collective
agreements). As well as serving as the basis of the regularity of contracts, this approach enables the Group to
operate fairly at all levels of the Company and in all theCountries and Regions which Enel is present.
In Enel there are no limits to freedom of association. As
indicated by the GFA and the Human Rights Policy, Enelrecognizes the right of its workers to form or take part inlabor organizations established to defend their interests,
and to be represented within the various work units bytrade union bodies or other forms of elective representation, in accordance with the laws and practices in force
in their place of work. Enel acknowledges the value of collective bargaining as the preferred instrument to establish
contractual conditions for its workers and to regulate relations between Company management and trade unions.
The Company maintains a strict policy of neutrality regarding workers’ decisions to join or not join a trade union
and which trade union they choose. It also recognizes
trade unions as representatives of the Company’s workers
in accordance with national legislation. Where local andinternational standards differ, Enel applies those that bestprotect workers’ rights. Finally, Enel is committed to ensuring that workers’ representatives are not discriminated against as a result of their representational activities.
The Company rejects any form of discrimination based on
trade union affiliation or activity with regard to recruitment,
remuneration and career advancement, which must be
based solely on ability and merit. The Human Rights Policy
also states that collective bargaining agreements are thepreferred instrument to establish contractual conditions
for its employees and to regulate relations between senior
management and trade unions. In 2023, the percentageof employees covered by collective bargaining agreements was about 91%, in line with the previous year.
At European level, the Agreement on the Enel European
Works Council of 2016, extended in 2022 and current-

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

ly being re-negotiated, is confirmed as one of the mostadvanced agreements in the EU electricity sector for its
focus on bilateral issues such as occupational health andsafety, training and diversity.
Enel and the domestic and European federations (IndustriAll Europe and the European Public Services Union) havetransferred their consolidated experience of social dialogue to the Sectoral Social Dialogue Committee of theelectricity sector, established at the EU Commission – DG
Employment – regarding the employment impacts of theenergy transition and digitalization in the coming years in
all European and global electricity companies.
First with the Italian trade unions and then with those of4

Performance 2023

5

Appendixother countries where the Group is present, Enel has also
signed an agreement, the Charter of the Person, to protect individuals in their work, personal and social spheres.
The document not only outlines new guidelines in industrial relations, but more generally reaffirms the centralityof people, starting with their well-being and motivation,
guaranteeing quality training in terms of self-learning andhigh safety standards, rooted in the responsible approachof all.
In the event of organizational changes, timely disclosure
to trade union representatives is required, as indicatedbelow:

COUNTRY  MINIMUM PERIODLEGAL PROVISIONS/COLLECTIVE AGREEMENTS

ARGENTINA

In view of the general provisions of the law and, in
analogy, a minimum period of 48 hours will be taken into
account for the purpose of notifying any amendment of
the essential conditions of the employment contract

There are no legal requirements or provisions incollective agreements

BRAZIL

It is convention and practice to provide “timely”
information

There are no legal requirements or provisions incollective agreements

CHILE

Neither the law nor collective bargaining provide for a minimum notice period in the event of organizationalchanges

COLOMBIA

Neither the law nor collective bargaining provide for a minimum notice period in the event of organizationalchangesITALY

The industrial relations protocol provides for the priorinvolvement of trade unions on the main organizationalchanges in order to share the objectives and manage
their implementation. The trade union dispute should
not last more than two months. If a Company/branchof the Company is transferred, trade unions need to be
informed at least 25 days before the transfer agreement
is finalized

Industrial Relations Protocol July 17, 2012(section 9)
Art. 47, Law no. 428/90

PERU

Neither the law nor collective bargaining provide for a minimum notice period in the event of organizationalchanges

ROMANIA

Obligation to inform and consult workers’
representatives on the Company’s development andto inform them periodically about the Company’s
economic situation. Disclosure to and consultation with
employee representatives regarding the recent and likely
development of the Company’s business and economic
situation. Information and consultation of workers’
representatives on decisions that may entail significant
changes in work organization, contractual relations orlabor relations, including but not limited to transfers
within the Company, acquisitions, mergers, collective
redundancies, closure of production units, etc.

Legal provisions and collective agreements

SPAIN AND PORTUGAL

30 days

Provided for in the Collective Agreement and the
Framework Guarantee Agreement of Endesa SA
and its subsidiaries in Spain

Enel people

207

SUSTAINABLE SUPPLY CHAIN
DOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

MATERIAL TOPICS:STAKEHOLDERS• Sustainable supply chain• Suppliers

Enel is working toward an increasingly sustainable supply chain, focusing on decarbonization, circularity of materials, andrespect for human rights at all stages of its procurement process.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETSMAIN
SDGs

RESPONSIBLE MANAGEMENT OF THE PROCUREMENT OF GOODS, SERVICES AND WORKS
Qualified suppliers assessed for healthand safety aspects for all productgroups (% qualified suppliers)(1)100%Target outdated as it has
been achieved

8

Qualified suppliers assessed forenvironmental aspects for all productgroups (% qualified suppliers)(1)100%Target outdated as it has
been achieved

12 13

Qualified suppliers assessed for humanrights or business ethics aspects for all
product groups (% qualified suppliers)(1)100%Target outdated as it has
been achieved

12 16

Value of coverage of tenders with“sustainability Ks” (% of tenders with“sustainability Ks”/total tenders)97%

Target outdated as it has
been achieved, given also
the increased focus on theapplication of sustainability
requirements graduallyreplacing the specific reward Ks

12

Value of tenders covered by mandatory
sustainability requirements

52%(2)>55%(3) in 2026

12

Value of supply tenders coveredby ranking/target based on carbon
footprint values

76%>70% in 2026

12 13

Value of supply contracts covered
by Carbon Footprint certifications(EPD, ISO CFP)

66%

68% in 2026

12 13

12

(1)

The percentage is calculated considering the total number of suppliers with valid qualification at the end of the year and does not include large players andsubsidiaries of related industry groups. Rounded values.
(2) Mandatory requirements in addition to basic contractual clauses regarding health and safety, environment and human rights.
(3) Target has been redefined to include all supply and site-related tenders (wind, solar and primary substations) launched during the year, whether awarded
or in progress.

Goals

New

Progress

Redefined

Outdated

208 Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

SUSTAINABLE
SUPPLY CHAIN
2-6

3-3

204-1

308-1

407-1

408-1

409-1

414-1

66%

76%

AroundSUPPLY CONTRACTS FOR
WHICH CARBON FOOTPRINT
CERTIFICATIONS MUST BE
SUBMITTED (% OF TOTAL)SUPPLY TENDERS WHERE
CARBON FOOTPRINTTARGETS HAVE BEEN
APPLIED (% OF TOTAL)NUMBER OF QUALIFIED
SUPPLIERS WITH A
CONTRACT ACTIVE AT
THE END OF 2023

62% in 2022

68% in 2022

around 9,400 in 2022

+6.5%

+11.8%The transformation of the energy system, alongside thedigital revolution, entails changing and evolving the way
works are performed and how goods and services aresupplied. It also means suppliers are essential partners toachieve sustainable progress across the entire context inwhich the Company operates.
Enel requires that suppliers not only operate in compliance with applicable laws and authorizations, but thatthey also commit to adopting best practices in terms ofgovernance, ethics, human rights, health, safety and theenvironment, in line with the Group’s strategy, some of its

8,300-11.7%

codes of conduct (the Human Rights Policy, the Code of
Ethics, the Zero Tolerance of Corruption Plan approved by
the Enel SpA Board of Directors) and its global complianceprograms. Enel works with suppliers to maximize the economic, productive, social and environmental benefits ofthe transition and strives to create sustainable, innovativeand circular processes to mitigate the impact generated
by its activities through efficient use of resources, technological innovation and proper waste management, mindfulof the need to prevent pollution and reduce energy consumption and emissions, including gas emissions.

PURCHASES AND TENDERS FOR GOODS AND SERVICES
SUPPLIES, WORKS AND SERVICES CONTRACTS (mil euros)
SUPPLIESWORKSSERVICES

9,788
7,820
6,510

6,447
4,960
3,776

2021

2022

2023

2021

6,744

6,388

4,492

2022

2023

2021

2022

2023

Sustainable supply chain 209

COUNTRIESTOP 10 ENEL SOURCING LOCATIONS
no. of suppliers
240

6,091

6,091

2,653

1,037

Italy

Spain

Chile

1,036

Brazil

701

USA

683

Greece650

Colombia

545

Peru

256

240

MexicoArgentina

The countries shown in the chart represent the locations of suppliers with active contracts.

In 2023, the total for works, services and supply contracts amounted to over 18 billion euros, of which about
one half in Italy, followed by Spain, Chile and Brazil.
Together with suppliers, Enel works to define new metrics
and to promote co-innovation projects in the perspectiveof a decarbonization and circular economy pathway, whichshould have positive impacts on both power generation
processes and purchasing methods. Specifically:• Product Carbon Footprint (PCF) certifications, including the Environmental Product Declaration (EPD) andthe ISO PCF, are sought from suppliers in the core categories(1), with the aim of objectively quantifying, certifying and communicating the environmental impacts
generated throughout the life cycle of supplies. Certified data enables Enel to measure emissions along theentire supply chain, supporting the Group’s decarbonization pathway;• as part of its tendering process, Enel sets increasingly challenging reduction targets on core supply categories, which also take into account the contributionsof innovation. These targets are shared with suppliers

(1)

210

•

and are in line with the Paris Agreement, which calls fora less than 1.5 °C temperature increase containment
path. In line with the digitalization process, a tool has
also been developed to calculate, both on a daily basis and automatically, supply chain emissions (Scope 3
upstream) and projected reduction curves to 2030 and
2040 (see also the box dedicated to the “GoZero Dashboard”);
a responsible supply approach to energy commodities is encouraged, with suppliers asked to adhere to
the principles to which Enel is committed (the Human
Rights Policy, the Code of Ethics and the Zero Toleranceof Corruption Plan).

In the bidding processes for core commodity categories
Enel requires suppliers to declare the quantities of eachcomponent material in the product, including recycled
and recyclable materials. The acquisition of this information allows suppliers to be rewarded based on their recycling capacity, thereby stimulating a circular culture andreducing potential ESG impacts associated with pressure
on materials and technologies critical to the transition, en-Core categories are those that are strategic for the business including wind turbines, inverters, smart meters, photovoltaics, switches, panels, cables, transformers, electric car charging points, street lighting, smart home solutions and storage systems.

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

vironmental degradation associated with their extraction
and processing, and carbon emissions arising therefrom.
Also with regard to the core categories, in the tenderphase suppliers must fill out a form through which they
map the geographical areas of extraction and productionof raw materials involved in the supply of the product being tendered, all backed up by relevant documentation.

4

Performance 2023

5

Appendix

A tool has also been developed which, on the basis of datafrom the literature and information also acquired throughinterviews with suppliers, arrives at an initial identificationof potential human rights issues, so as to better guidestrategic sourcing choices (see also the dedicated box
entitled “Assessment of potential human rights issues inthe supply chain”).

Supplier management and assessment processes
3-3
In addition to ensuring the necessary quality standards,
supplier performance must go hand in hand with a commitment to adopt best practices according to the highest
sustainability criteria. The criteria underlying procurement
practices are reviewed periodically to ensure their alignment with conduct policies (including the Human Rights

Policy, the Code of Ethics, the Zero Tolerance of Corruption Plan and global compliance programs) and evolving
ESG requirements relevant to the Group. Analysis andmonitoring activities are also carried out throughout the
procurement process.

SUPPLIERQUALIFICATION SYSTEMTENDERING AND
CONTRACTING PROCESSESMONITORINGSYSTEMS• Differentiated pathways based• Inclusion of “sustainability• Performance appraisal based also

on the combination of risk level
identified and countries qualified for• Sustainability assessment on

requirements and Ks” to bemonitored throughout thecontract performance period

on health and safety, environmentand human rights indicators

health and safety, environmentand human rights

Supplier qualification system
Enel has adopted a qualification system to identify suppliers who meet the requirements necessary to cooperatewith the Group. Supplier qualification is organized by commodity categories called Product Groups (PGs)(2). Taking
into account its own business, each company can undertake a qualification pathway for one or more PGs, selecting
the countries in which to supply goods and services. The
assessment process varies depending on the level of risk
(high, medium or low) associated with the PG for each issue (technical, safety, environmental, reputational aspects,etc.). In addition, regardless of the risk level of PGs, checks
are carried out on the following aspects:• legal/reputational. In addition to compliance with therelevant laws and regulations, suppliers are required
to adhere to the principles to which the Company has
committed itself with its Human Rights Policy, its Codeof Ethics, its Zero Tolerance of Corruption Plan and its
global compliance programs, with specific reference tothe absence of conflict of interest (including potential);• economic-financial. These audits aim to assess the
economic and financial viability of suppliers based on
an analysis of their financial statements;• sustainability. Completion of a questionnaire on all
sustainability topics is required, specifically:– health and safety: the “Safety Self-Assessment” isrequired, as it informs suppliers in a straightforward(2) Product Group (PG): specific category of goods/works/services that Enel purchases. The qualification process and related verifications that Enel carriesout vary depending on the level of risk associated with each PG. There are 4 risk components: technical, safety, environmental, and reputational. The risk ofeach component is assessed according to type of goods/works/services (and related activities) and the country context.

Sustainable supply chain

211

way of the fundamental requirements on which towork and grow together;– environment: on a scale of 1 to 3 (1=worst; 3=best,
respectively), different environmental criteria areevaluated depending on the relevant PG and its associated level of risk;– human rights: through the use of a questionnaire
regarding how the supplier manages labor practices(such as rejection of forced or child labor and respectfor diversity) and community relations (local, indigenous and tribal peoples).

has been lost, the supplier’s qualification status will betemporarily suspended for the period necessary to carryout the appropriate investigations that may lead either toreadmission to the Register or revocation of the qualification.
Evaluation of the actions described above is the responsibility of the Qualification Commission, which is present inall major countries, is in charge of assessing requests for
qualification, as well as possible suspensions, and of andexamining proposals for changes to the technical qualification requirements and Product Group tree made by
Business Lines.

With regard to health, safety and environmental aspects,
for the highest risk PGs, an on-site assessment at the supplier’s premises or worksites is always required, an activity
performed partially through outsourcing.

As of December 31, 2023, 100% of qualified suppliers
were assessed according to social, environmental andsafety criteria. The total number of qualified supplierswith a contract still active at the end of 2023 was about
8,300 (more or less 60% of active suppliers as of December 31), while the total number of active qualified companies was approximately 35,332.

If the outcome of these analyses and assessments is
positive, individual suppliers can qualify and be added to
the Supplier Register for 5 years and then be invited toparticipate in the Group’s procurement procedures. Enelmonitors the maintenance of qualification requirements
throughout the period of inclusion in the Supplier Register. Should it be found that even one of the requirements

The following table shows the trend in the qualified suppliers’ percentage for the three aspects analyzed by process.

% QUALIFIED SUPPLIERS%QUALIFIEDFOR
SOCIAL, SUPPLIERSENVIRONMENTAL AND SAFETY ASPECTS AS AT DECEMBER 31
FOR SOCIAL, ENVIRONMENTAL AND SAFETY ASPECTS AS AT DECEMBER 31
HUMAN RIGHTS212

SAFETYENVIRONMENT

99

99

100

99

99

100

99

99

100

2021

2022

2023

2021

2022

2023

2021

2022

2023

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Tendering and contracting processes
Consistent with its commitment to introduce sustainability aspects into the tendering processes, Enel adopted astructured process for defining sustainability “requirements” (the conditions necessary for a supplier to participate in the tendering process) and sustainability “Ks”
(optional factors whereby a score/prize is awarded to the
supplier who possesses them) that can be used by thevarious purchasing and monitoring units throughout theentire life of the contract.
The process includes two “Libraries”, in which all “sustainability requirements and Ks” are catalogued, grouped
into the macro-categories of certification, environmental
and circularity aspects, such as waste management andcarbon footprint assessments according to UNI EN ISO
14067:2018, as well as social aspects, such as training andemployment of people from local communities and actions to respect gender diversity.
These are periodically updated within a cross-functional
working group dedicated to sustainability and circularity
issues and which takes into account market maturity andnew corporate strategies.
During the tendering process, the supplier may decide
to take on additional obligations by accepting the sustainability requirements and Ks applied in the tender, themonitoring of which is carried out during the term of thecontract.
In relation to the issue of human rights, a new sustainability requirement inherent in the supply chain mappingof core product categories was introduced in the Libraryin 2023. Through the implementation of this requirement,
during the bidding phase suppliers are asked to complete
a mapping sheet of the potential supply chain involved in
the supply being tendered, reporting, for each individualmaterial or component identified (tier), information on the
countries of extraction or production.
As for the path to Net Zero, a key role is to be attributed tothe application at the bidding stage of CO2 targets alignedwith the curves certified by SBTi (Science Based Targets
initiative). Specifically, a model was developed during 2023
which, having set the CO2 price, promptly identifies thepercentage value of the K to be applied to the supplier’s
bid depending on the positioning according to the targetof the different suppliers.
As regards contractual aspects, Enel has defined specificclauses which are updated periodically in all works, services and supply contracts so as to take into account different regulatory adjustments and align with international
best practices.
The General Terms and Conditions of the Contract stipulate that suppliers, subcontractors, sub-suppliers, third

parties and the entire supply chain involved comply withthe applicable wage, contribution, insurance and tax regulatory conditions with respect to all workers employed inany capacity in the performance of the contract. In addition, compliance with the principles set forth in the International Labour Organization (ILO) Conventions and legal
obligations regarding the protection of child and women’s labor, equal treatment, prohibition of discrimination,
abuse and harassment, freedom of trade unions, association and representation, rejection of forced labor, safety and environmental protection, and sanitary conditions
are explicitly required. In the event a conflict between theabove legal obligations and the ILO Conventions, the more
restrictive rules shall prevail.
The clauses further stipulate that suppliers, subcontractors, sub-suppliers, third parties, and the entire supply
chain involved, must commit to prevent all forms of corruption (Art. 29.1.5 of the General Terms and Conditionsof the Contract).
In addition to the legal provisions, the contractual conditions require that suppliers:• recognize the “ten principles” of the United Nations
Global Compact and declare that they manage theirbusiness activities and operations in order to meetthese fundamental responsibilities in the fields of human rights, labor, the environment and the fight against
corruption (Art. 28 of the General Terms and Conditions);• acknowledge the commitments Enel has made in theprinciples listed in the documents below and referto them in the execution of the contract: the Human
Rights Policy, which includes a principle related to respect for the environment and biodiversity; the Codeof Ethics, in which the value of fair competition is also
promoted through abstention from collusive, predatory
behavior and abuse of dominant position; Zero Tolerance of Corruption Plan, and global models of criminal risk prevention (Art. 29.1.1 of the General Terms andConditions of the Contract);• adopt suitable conduct to avoid the emergence of conflicts of interest throughout the duration of the contract and undertake to notify Enel promptly in writing if
any such circumstances arise (Art. 29.2 of the General
Terms and Conditions of the Contract).
Enel reserves the right to carry out any control and monitoring activity to check compliance with the obligations
set out above by both the supplier and any of its sub-contractors, sub-suppliers, third parties of the contractor andthe entire supply chain involved, and to terminate the contract if violations are ascertained.

Sustainable supply chain

213

GOZERO DASHBOARD
As a result of the new GoZero Dashboard, it is
now possible to automatically calculate supply
chain emissions (Scope 3 upstream) and projected
reduction curves to 2030 and 2040. This is done ona daily basis from the base year order data and unit
emission factors that Enel’s suppliers report during
tendering or contract execution. Based on needs, the

ASSESSMENT OF POTENTIAL HUMAN
RIGHTS ISSUES IN THE SUPPLY CHAIN
Consistent with Enel’s commitment to respecting
human rights throughout the value chain, a tool has
been developed to assess potential human rights issues
present in the supply chains of core product categories.
For the purpose of the analysis, the main materials andcomponents (tiers) of the relevant categories wereidentified and, based on literature data and information
also acquired through interviews with suppliers, theprobable countries of origin were associated witheach tier. The tiers thus identified were collected into
3 macro-groups: “upstream”, which represents the raw

Monitoring systems
Enel has equipped itself with a system for monitoring thequalification requirements of suppliers listed on the Register. This system is embodied in:• reputational monitoring: based on the monitoring of
open sources and carried out continuously. The objective is to identify potential reputational risks arising froma counterparty’s involvement in criminal proceedings(including environmental crimes and those arising fromhealth and safety regulations) and human rights violations in business practice. Each country has set up an
Integrity Committee, composed of representatives fromthe Procurement Function, the Legal Function, the Security Function, and the Technical Functions of the Business Lines. This Committee meets whenever a critical issue emerges which may have negative repercussions on
the honorability of the supplier under consideration, toanalyze it and assess the application of specific actions
or penalties with regard to supplier companies;

214

Sustainability Report 2023

tool enables the filtering of emission data by Business
Line, country, supplier, and category of product,job, or service category, and all supporting KPIs andgraphs to be clearly and immediately available.
In line with digitalization processes, it is a major
step forward for Procurement to be able to monitor
reduction targets certified by Science Based Targets
initiative (SBTi).

material extraction stage; “midstream”, which coincides
with the raw material/component processing stage;and, lastly, “downstream”, which consists of the final
production stage.
The final score provides an initial identification ofpotential human rights issues in the supply chains
under analysis with respect to the tiers considered
and their countries of origin. At the end of 2023,
Enel developed an updated version of the tool that
includes the possibility for users to modify the list of
countries associated with each tier and the relative
percentage of supply, resulting in associated scoresthat can be used to guide strategic supply decision
making processes.

Suppliers
6,575 Tier 1 suppliers
6,319 Tier 1 suppliers assessed during2023 (assessments made at qualification,
bidding and contract award stages)
96% of Tier 1 suppliers were considered
relevant (“critical suppliers”) in relation totheir strategic importance related to theCompany’s business (non-substitutable orcritical component suppliers), purchasevolumes, and other factors that could
have economic, social and environmental
impacts
99% of total procurement spent bycritical Tier 1 suppliers

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis• document monitoring: this action aims to verify le-•gal documents (i.e., criminal records) and their validity.
The documents monitored take into account the legal
specificities of each individual country in which theGroup is present;
Ecofin monitoring: verification of compliance witheconomic and financial requirements, defined with theGroup Risk Control unit, through integration with external databases and documents provided by suppliers.

For suppliers who, in addition to being on the Register, also
have an active contract, the following monitoring threads
are additionally provided:• health, safety and environment: the performance of
suppliers is assessed and monitored through field inspections that identify existing non-conformities andpotential hazards with respect to contractual commitments, technical standards and authorization andlegislative requirements. The primary objective of theinspections is to prevent accidents, injuries, illnesses
and events that may have repercussions on the environment. During field inspections, specific checklists
are used to facilitate the homogeneous aggregation of
non-conformity data for subsequent corrective action.
The Evaluation Group is convened by the Health Safety
Environment and Quality Function of the Holding Company and is responsible for analyzing the data comingfrom Health Safety Environment (HSE) monitoring andfor evaluating possible consequence management
measures. In addition to representatives of the competent HSEQ Functions of the Business Lines, representatives of the Procurement Function, the Legal Function
and the Technical Functions of the Business Lines arealso on this committee;• quality and punctuality: monitoring examines information related to the quality of services and goods provided
by suppliers during contract performance (e.g., adherence to technical specifications, product reliability) andinformation related to adherence to agreed contractual
timelines (e.g., on-time delivery, project and schedule).
These monitoring threads feed into Supplier Performance
Management (SPM), a process for systematically collecting data and information related to the performance ofcontract subject matter of the contract the goal of which,in a collaborative effort with suppliers, is not only to take4

Performance 2023

5

Appendix

any corrective actions during contract execution, but also
to incentivize a path of improvement through actions thatreward best practices. In addition, all Enel people who interact with suppliers have the opportunity to express theirown assessment using the dedicated Track & Rate app. In
particular, during 2023 a guideline was drawn up on aspects related to human rights and business practices tosupport Enel people in evaluating supplier performance inthis area in the “Human rights and fairness” category.
Depending on the performance achieved by suppliers, a
consequence management model is applied. This may include actions aimed at improvement, reduction of risk andmeasures to reward excellence. Monitoring of categories
is carried out:
• at contract level: analysis performed periodically thattakes into account the supplier’s performance during
the contract period in order to minimize contract related risk. As a result of this analysis, ordinary consequence management actions can be taken (i.e., termination of the contract, application of penalties, whereapplicable, assignment of an improvement plan and anincrease in contract volume, if applicable, etc.);• at Product Group level: long-term analysis carriedout periodically that takes into account the supplier’s
performance over the past 12 months, with the aim of
implementing consequence management actions at a
broader level such as maintaining listing on the Supplier
Register (suspension, extension, duration of qualification, increase or decrease in award class, etc.).
To support suppliers in corrective actions, digital tools areavailable through which they can communicate with the relevant areas and exchange any supporting documentation.
Through the SPM process, about 9,000 suppliers havebeen monitored in the past year (compared to about
7,700 in 2022).
In addition to these audits, and again for suppliers with anactive contract, there are plans to monitor the additional
obligations generated by the application of sustainability
requirements and Ks during the contract period. As theseobligations are an integral part of the contract itself, failure
to comply with them shall result in consequence management actions ranging from the application of penalties tocontract termination.

Sustainable supply chain215

Training and information
3-3
Over the past few years, Enel has held numerous meetings
with suppliers to explore topics related to decarbonization, circularity and human rights, with the aim of sharing
common practices and approaches and pushing the supply chain toward the sustainability standards required by
the international community. In line with the activities initiated in the area of human rights, several initiatives were
undertaken during 2023 to engage suppliers on supply
chain mapping aspects. Specifically, 16 workshops wereorganized to which approximately 700 suppliers in thecore product categories were invited to elaborate on theGroup’s human rights commitments, and provide guidance on the new requirements related to human rights
issues in tenders and addenda to contracts.
In addition, articles are published periodically on the Procurement Function website that highlight the commitment made by the Group to these topics (https://globalprocurement.enel.com).

Creation of sustainable value: Supplier Development Program
Enel has launched various initiatives to increase the resilience of the supply chain and make the concept of supplier centricity ever more concrete and tangible.
One example is the Supplier Development Program, initially launched in Italy (where it is currently open to morethan 6,000 suppliers) to support the growth path of companies in the supply chain and, at the same time, contribute to the achievement of the Group’s strategic objectives. The program is aimed at companies, with headquarters or a branch in Italy, qualified or in the advanced
stage of qualification in the Supplier Register and with aproduction value of up to 250 million euros.
By entering into agreements with major players in the financial and training fields, more favorable conditions compared to those of the market are guaranteed for access tothe services offered under the program. These range fromfinancial instruments that can facilitate access to liquidity,
management training programs (with partners such as SDA
Bocconi and Luiss Business School) and technical training
programs (with partners such as BayWa r.e, CESI, Golder)that promote the conversion of the business towards theenergy transition, from consulting services on sustainability, circular economy, strategy, M&A and internationalization, to access to catalogues of means of transport andelectric, hybrid and standard work machines, to services
for obtaining certifications (including product, service, andpeople certifications offered by APAVE and sustainability
certifications offered by ICMQ and IMQ) and from personnel headhunting and recruiting, to supplies of hardware
and software for process digitalization.
As of 2023, about 1,000 services were activated, with
65% referring to the financial area and the remainder totraining, certifications and rental/purchase of work vehicles. Particular attention is paid to initiatives to support
the reconversion and diversification of business such as
the “Sportello imprese” (business desk), which consistsof periodic meetings with individual traditional power216

Sustainability Report 2023

generation companies aimed at accompanying them inprocesses of growth and redevelopment towards areas
in expansion, such as renewables or new services related
to energy efficiency.
This program aims to promote:• increased awareness of sustainability and digitalization topics;• differentiation of the business and the consequent reduction in supplier dependence on Enel;• an increase in financial strength;• internationalization, which helps grow Enel’s businessoutside of Italy and Europe.
The program is also active in Iberia where, during 2023, aseries of initiatives were implemented to support supplier growth, including:• the launch and dissemination of “Circular Confirming”,
a financial solution that rewards suppliers who demonstrate greater commitment to sustainability and thecircular economy. Suppliers present to the credit institutions that form part of the program certifications todemonstrate this commitment and obtain from thema reduction in the expected cost of prepayment of invoices (up to a maximum of 50%). Currently more than
1,900 suppliers have signed up for this program;• agreements with major training service providers tooffer a variety of courses to suppliers on very favorable
terms. The areas of training that suppliers can accessare many and mostly focused on sustainability, the circular economy, security, data protection and the development of various soft skills;• participation in the “Training Program: Sustainable
Suppliers” initiative developed by the United Nations
Global Compact, an outreach focused on integrating
sustainability and the circular economy throughout
the value chain, mainly in small and medium-sized enterprises, with more than 260 suppliers joining following an invitation from the Procurement Function;

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis• in collaboration with the Sustainability Area, the orga-•

4

Performance 2023

Appendix

activities, involving a total of 3,200 people;
consolidation of Iberia’s Supplier Development Portalas the place to access all news, information, conditions
and promotions related to the program (https://globalprocurement.enel.com/es/noticias/news/2020/03/
programa-de-desarrollo-de-proveedores-un-camino-para-el-crecimiento-y-el-desarrollo-sostenible).

nization in Spain of the training workshop “Calculating
and Recording Carbon Footprint”, a free training session – involving about 350 suppliers – the aim of whichis to promote and expand knowledge of measuring andreducing the Carbon Footprint;
training for solar plant construction and dismantling•

ENERGIE PER CRESCERE

Energie per Crescere sees the collaboration of several
actors: ELIS, a non-profit organization that provides
vocational training, the major employment agencies
in Italy, Accredia - certified training institutes at which
the candidates, once selected, attend the planned
200 hour courses and, finally, Enel’s contracting
companies that hire the participants throughout thecountry at the end of the training course.
The program expects to train about 5,500 people
by the end of 2025. As of 2023, more than 4,000
resources had been trained, of which about 2,600
were hired by Enel contractors.
In Iberia, the same goals are being pursued through the“e-Distribution Dual Training” employment distribution
training plan, already underway in 27 vocational training
institutions with more than 230 students enrolled.

At the end of 2021, the “Energie per Crescere”(Energies for Growth) program was launched, withthe aim of training new specialized professionals
in order to strengthen Enel’s supply chain in termsof executive capacity while also developing, in adiffuse way, the skills that are needed both now andeven more so in the future for the country’s energy
transition trajectory.
The program particularly involved e-distribution
contractors, creating job profiles that are in highdemand in the industry (e.g., linemen, cable splicers,
secondary substation assemblers and operators
working under voltage).

5

Sustainable supply chain217

ENERGIE PER LA SCUOLA: vocational
training to support the energy
transition
The energy transition begins in the classroom. This
is why, once again this year, Enel continues to focus
on the vocational training of young people withthe aim of fostering their inclusion in the working
environment of the energy industry. The “Energie perla Scuola” (Energies for School) program, launched in
2021, starts from a very specific need for new skills
adapted and updated with the latest technologies.
For this reason, the training program coordinatedby the Group puts forward for students in their final
year of high school an innovative teaching methodthat combines classroom knowledge with vocational
training, the ultimate objective being a direct job offerfrom Enel contractor companies upon completionof the program. The training course covers the
profiles most in demand in the electrical sector. The
aim is to create a bridge between education andthe professional sphere, encouraging the students
to acquire the skills needed to embrace the new
professions of the energy transition, and facilitating
their entry into the workplace with the Group’s
suppliers immediately after graduation, also throughgreater knowledge of the industrial realities in theindustry. After the first two events dedicated toprofessions for the grid – with a headcount of about
550 students trained, the vast majority of whom havealready been hired and the remainder of which are in
the process of being hired in the businesses involved– the third event launched in 2023 extended its scope
to renewables, involving additional Enel suppliers andnationwide educational institutions, with a calendar ofpresentations to entities throughout Italy.
These are the regions where the Energie per la
Scuola program applied to renewables was launched:
Basilicata, Calabria, Campania, Lazio, Lombardy,
Piedmont, Apulia, Sardinia, Tuscany and Umbria. For
networks, the project will involve almost the entire
country.

Energy commodity supply chain
2-6

3-3

301-1

The term energy commodity denotes those energy raw
materials, or a particular category of fungible goods traded in the market, for example, coal, power and gas. Suppliers of energy commodities and related transport services
are selected through the “Know Your Customer” process
that, for each counterpart, evaluates the reputational andeconomic-financial aspects and their satisfaction of theappropriate technical and commercial requirements. With
particular reference to sustainability aspects, counterparts
are required to adhere to the Group’s principles, particularly the Human Rights Policy, the Code of Ethics, the Zero
Tolerance of Corruption Plan, and the environmental policy. Enel reserves the right to terminate contracts in severecases of non-compliance with those principles. Checks
also ensure that suppliers are not on any specific UN, EU or
Office of Foreign Assets Control (OFAC) blacklists. Theselists identify individuals or organizations associated withterrorist associations, organizations under EU financial
sanctions, and so-called Specially Designated Nationals(SDNs) who are subject to US sanctions on terrorism or
drug trafficking charges, among others.

218

Sustainability Report 2023

During 2023, these checks were strengthened further. In
particular, to mitigate the risks arising from the maritime
shipment of fuel, Enel has adopted a tool to vet and select the carriers used (vetting) and to analyze the counterparty’s compliance with Enel’s commitments, in linewith relevant international standards. Vetting is a recognized industry standard for oil transportation. Enel, alongwith many other operators, also applies this methodology for dry bulk transport.
To assess the sustainability aspects of coal sources, aninternal process involving different actors has been established to ensure that Group requirements for occupational safety, environment and human rights have beensatisfied, which may include a site visit to coal suppliers
deemed to be strategic.
In addition, a number of meetings with suppliers andcounterparts related to different energy commodities
have been held over the past year in order. These discusscommon issues, such as emission reporting methodologies, increasingly pushing for a sustainable and sharedapproach throughout the supply chain.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Together with leading European electric utilities, Enel isalso actively engaged in Bettercoal, a global multi-stakeholder initiative designed to promote continuous improvement in corporate responsibility in the coal supply
chain. Bettercoal has released a code of conduct basedon existing and agreed standards of social responsibility
in the mining sector. This sets out in detail the guidelines
for sustainable environmental and social conduct (including issues of ethics and integrity) to which mining companies can refer. Bettercoal Code establishes members’
expectations regarding suppliers’ practices related to fourmain categories – management systems, ethical commitment and transparency, human rights and environmental
performance – by promoting continuous improvement
and integrating proper planning of the mine closure andrestoration process from the earliest stages of mine de-velopment. After signing a letter of commitment, mining
participants in the program embark on a virtuous pathby accepting on-site checks, carried out by independent
third parties, to verify that the code’s principles have been
applied, and agreeing an ongoing improvement plan toovercome any shortcomings. In addition to Bettercoal’s
growing presence in various forums in the area of coaland supply chain sustainability, the initiative has become
an example of collaboration among the various stakeholders, geared towards improving socially responsible
practices, and from this a broader collaboration related
to the responsible sourcing of other energy commodities
is emerging. For further information, please refer to thewebsite www.bettercoal.org. During 2023 Enel continued
to participate in the South Africa Working Group established in 2022.

Resources used in the production process

UM

2023

2022

2021

20232022

%

Scope

Coal

(,000 t)

4,817

8,522

5,958

-3,705

-43.5

Enel

Lignite(,000 t)

-

-

-

-

-

Enel

Fuel oil(,000 t)

807

889

863

-82

-9.2

Enel

Natural gas

3(mil m )7,673

13,214

15,682-5,541

-41.9

Enel

Diesel oil(,000 t)

1,061

1,262

1,033

-201

-15.9

Enel

Biomass and waste for thermoelectric production(,000 t)

55

65

71

-10

-15.4

Enel

Biogas3(mil m )

0.3

1.2

0.7

-0.9

-75.0

Enel

Geothermal steam used for electricity production(,000 t)48,94349,947350,160-1,004-2.0

Enel

Fuel consumption for thermoelectric production
from non-renewable sourcesfrom renewable sources

Sustainable supply chain

219

ENGAGING COMMUNITIESENGAGING COMMUNITIESDOUBLE
MATERIALITYDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABILITY
PLAN PILLAR

MATERIAL TOPICS:SUSTAINABLE DEVELOPMENTGOALS (SDGs) DEVELOPMENTSUSTAINABLE
GOALS (SDGs)

STAKEHOLDERS•MATERIAL
Engaging local
and
TOPICS:
global communities• Engaging local andglobal communities•STAKEHOLDERS
Communities• Communities

Enel is implementing projects in the countries in which it operates to help create value for the local area and for the business
Enel
implementing
projects
in the countries
in lineis with
Sustainable
Development
Goals. in which it operates to help create value for the local area and for the businessinwith Sustainable
Development
Goals.
Bylineimplementing
community
initiatives,
Enel relies on international partnerships with non-profit organizations, social enterBy
implementing
community
initiatives,
Enel reliesinternationalwith non-profit organizations,prises,startups andinstitutions
with valuable
local onexpertise in viewpartof anerships
multi-stakeholder
approach(SDG 17). social enterprises, startups and institutions with valuable local expertise in view of a multi-stakeholder approach (SDG 17).
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 2024Below
the 2023 results
relatedthebe
previous2023-2025
SustainabilityPlan,
the resulting
and targets of the 20242026 Sustainability
Plan,whichtomay
redefined,
added, oroutdated withrespect
to the progress
previous Plan.
2026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTS
2023
RESULTSACTIVITIESACTIVITIES

2024-2026
TARGETS2024-2026

MAIN
SDGs
MAIN

TARGETSSDGs

SUPPORT FOR LOCAL COMMUNITIESSUPPORT FOR LOCAL COMMUNITIES
Projects for communities

N.A.

Projects for communities

N.A.

6.5 mil beneficiaries over the(1)
period
6.5 mil 2024-2030
beneficiaries over theperiod 2024-2030(1)Beneficiaries of projects on inclusiveandequitable
qualityeducation
Beneficiaries ofprojects
on inclusive

and equitable quality education
Beneficiaries of projects on access toaffordable,reliable,sustainable
and toBeneficiariesof projects
on accessmodernenergyaffordable,
reliable, sustainable andmodern energy
Beneficiaries of projects to promote
durable,inclusiveand sustainable
Beneficiaries
of projects
to promoteeconomic
growthand sustainable
durable, inclusive

4

7

8

4

7

8

4
4

Targets are considered
outdatedasconsidered
they are replaced
Targets arewiththe “Projects
for replaced
outdatedas they arecommunities”
target.
with the “Projects for26.5 mil beneficiaries(2015-2023)

26.5 mil beneficiaries(2015-2023)

communities” target.

7
7
8
8

economic growth

220

(1)

Target is considered redefined for greater focus on identified projects.

(1)

Target is considered redefined for greater focus on identified projects.

Goals

Progress

Goals

Progress

New

Redefined

Outdated

Not in line

In lineAchieved

New

Redefined

Outdated

Not in line

In lineAchieved

Sustainability Report 2023

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan
N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

ENGAGINGCOMMUNITIES
2-29

3-3

411-1

413-1

3,9 million(1)

BENEFICIARIES IN 2023
6,3 million(2) in 2022

Managing community relations in the areas where Enel
operates is crucial to all its activities, and involves incorporating the needs of local communities into the development of activities, from the growth of renewables to thedigitalization of grids and the electrification of uses.
Engaging communities and understanding the different
contexts in which the Group operates is therefore essential to develop a sustainable business that minimizes impacts while promoting inclusive and equitable growth in
the local area. From the very early stages of business project development, Enel engages with local stakeholders byraising awareness and providing information on mutual

benefits, the strategic role of the electricity industry in theenergy transition, and the challenge of climate change.
Joint sustainability plans are defined, which include theimplementation of practices and solutions to ensure that
assets are as sustainable and integrated as possible withthe local area.
Establishing and maintaining stable, long-term relationships with communities can help identify new opportunities for development and integration with the local area,
and avoid potential conflicts that could lead to delays in
implementing key business activities for energy transition.

(1)

Beneficiaries are individuals who are expected to benefit from the implementation of a project. Enel considers only the beneficiaries for the current year.
The number of beneficiaries considers the activities and projects carried out in all the areas in which the Group operates.
(2) The 2022 value is not comparable with the 2023 figure due to a methodological change that led to the adoption of new criteria.

Engaging communities

221

The model for creating shared value with
the Enel communities
Recognizing that the Group’s activities can have a direct
and indirect impact on the communities in which it operates, Enel has adopted a shared value creation model
together with the communities throughout the entire
value chain. This model integrates social and environmental sustainability criteria into the various processes fromthe first stages of development (“sustainability by design”),
focusing on solutions promoting circularity, technologicalinnovation, and harmonious integration with the local area.
The key aspect of this model is engaging communities,
which begins at the planning stage and enables the Groupto identify the needs of the communities within its sphereof influence. Consultation and consensus building with local communities help to identify the potential impact ofEnel’s activities on them as comprehensively as possible,
and to take these impacts into account when designingbusiness activities.
Additional initiatives are then implemented throughout the
lifecycle of each asset as events or needs arise during facility construction, day-to-day activities, plant operations, andstakeholder interactions to ensure continuous dialogue.
Targeted actions are also taken in the event of unforeseen
circumstances, such as natural disasters or social unrest,
which cause significant damage to the Group’s assets, thelocal area and communities, and significantly affect people’s well-being and safety.

STAKEHOLDER ENGAGEMENT IN THE AREA OF INFLUENCE

1.

2.

3.

4.

CONTEXT ANALYSIS,IDENTIFICATION
AND ANALYSIS OFSTAKEHOLDERS IN THE
AREA OF INFLUENCE

PROACTIVE
CONSULTATIONONGOINGDIALOGACCESS AND REMEDY
CHANNELS (“GRIEVANCEMECHANISMS”)

a. Organized in a way to meet
specific conditions ofquality and inclusiveness,such as being free,preventive, informed,
adapted to the local
context, bidirectional
and well documented,
in line with internationalreference standards.

a. Sharing with affectedstakeholders in thearea of influence all the
relevant information about
the project in order topromote transparent andcollaborative relationships.

a. Collection and analysis
of a wide range ofsocio-economic andenvironmental data.
b. Identification of
stakeholders in thearea of influence of theGroup’s business activities
and verification of therepresentativeness of allgroups affected by thedevelopment of Enel’s
activities in the area ofinfluence.
c. Analysis of the type of
relationship that can becreated between Enel andmapped stakeholders inorder to avoid potential
conflicts of interest.

b. Involvement of
independent third parties
in negotiation processes
because of their expertisein the area and as a “bonafide witness”, if applicable.

The communities living in the areas of influence of Enel’splants have differing characteristics given the different
contexts in which the facilities are located.
Plants from renewable sources (hydroelectric, geothermal,
solar and wind) are characterized by their proximity to natural resources; therefore, the surrounding communities are

222

Sustainability Report 2023

a. Setting up channels to
be made available to any
person wanting to contact
Enel, also based on tools
and means available atthe local site, such as local
teams or specific people,
toll-free numbers, theinternet, or, in the case ofisolated rural communities,
even local leaders willingto collect all possible
complaints periodically.

predominantly rural or isolated, as is the case with indigenous and tribal peoples, and are partially involved in thelife of those power plants. The benefits of this engagement
include the possibility of seizing employment opportunities, as well as participating in vocational training initiatives
boosting access to the labor market as a result of the tran-

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

sition to green technologies, paying attention to the reduction of the gender gap and/or basic training in territories
with low levels of education.
Thermal power plants are generally located in industrialized contexts with a high population density, including areas characterized by extensive social vulnerability.
Distribution networks, on the other hand, cover a wide
range of contexts: pylons, poles and transformer cabins are

4

Performance 2023

5

Appendix

located in uninhabited areas, run underground under city
streets (especially in Europe), or characterize urban profiles
where community spaces are shared, bringing electricity
into homes. In particular, especially in Latin America, thestrong push for urbanization is leading to the rapid growthof suburbs populated by low-income communities, and a
reliable service network becomes the enabler for the sustainable development of these neighborhoods.

The value created for the communities
The contribution to sustainable development goals
Enel implements projects aligned with the Sustainable Development Goals in order to ensure inclusive and equitable
quality education (SDG 4), provide access to reliable andsustainable energy (SDG 7), promote sustainable economic growth (SDG 8), focusing in particular on social inclusion
for the most vulnerable population groups (physically, socially and economically).
In 2023, the Group strengthened its commitment to communities through integrated efforts between countries
and Business Lines, which allowed it to make the most of
the experiences gained over the years. Specifically, in or-

der to better map and monitor the effectiveness of projects involving communities, new indicators were defined
to measure impacts based on context-specific priorities.
In this way, the results of the projects implemented weremonitored to assess the positive impacts on the beneficiaries, with a total of approximately 3.9 million beneficiaries(1) involved, particularly in relation to SDGs 4-7-8(the number of beneficiaries had increased during theCovid-19 pandemic due to the emergency interventions
carried out, but has now returned to pre-Covid levels).

Measuring the value of Enel’s commitment for communities
3-3

203-1

Enel makes a substantive contribution to the development and social and economic growth of the local areasand communities where it operates through various typesof intervention; these local interventions move from infrastructure improvement up to education and training
program, initiatives targeting social inclusion, and project
supporting local cultural life.
To measure this action, the Group adopted the LBG (London Benchmarking Group) method, which makes it possible to clearly determine and classify the Company’scontribution toward the development of the communities
where it is present and compare it with other companies.
In particular, according to the LBG standard, the expense
for the contributions to communities can be broken down
as follows:• donations: pro bono contributions with no obligations
for beneficiaries, except that they have to use the donation for charitable purposes and non-profit associations. For Enel, this item includes all monetary and “inkind” donations;• investments in the community: medium-long term

involvement in community support projects, including
in partnership with local organizations, aimed at addressing significant issues both for the local area andthe Company. These include projects tied to a broader
community benefit strategy, as well as specific initiatives dedicated to communities close to power plants(see the chapters on “Customer centricity” and “Managing human rights”);• commercial initiatives with a social impact: supporting
activities connected to the core business, in which theCompany promotes its own brand and its own corporate identity. Examples of these initiatives are the marketing campaigns that also provide benefits for thecommunity, or that include contributions for charitablepurposes.
In 2023, Enel’s total contribution to the communities inwhich it operates was around 118 million euros, maintaining roughly the same commitment as last year (-1.8%
compared to 2022).

Engaging communities223

2023 initiatives for communities by purpose (%)
Donations

14.0%

Community investments

63.6%

Commercial initiatives with a social impact

22.4%2023 initiatives for communities by type (%)
Cash contribution

83.7%

Employee volunteerism

0.6%

Donations in kind (goods/services/projects)

6.8%Management overheads

8.9%

Sustainability projects and initiatives
In the areas in which it operates, Enel implements projects which, in line with the sustainable development goals,
contribute to the development and social and economic
growth of local communities by promoting infrastructuredevelopment, education and vocational training, ener-gy access, rural and suburban electrification, the fightagainst energy poverty, and social inclusion for the mostvulnerable population groups.
Examples of these projects are provided below.

VOCATIONAL
TRAINING,
ITALY(SDG 4)
Enel promotes vocational training programsin the local area, also in collaboration
with institutes and associations, boosting
employment opportunities and foster socialand economic development for communities
through reskilling/upskilling, technical training,and career orientation activities, as well as
providing school supplies and scholarships.
Examples of projects can be found in the224

Sustainability Report 2023

chapters “Zero emissions ambition and justtransition” and “Sustainable supply chain”.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

ACCESS TO ENERGY(SDG 7)
SUBURBAN ELECTRIFICATION,
CHILE
Another example of how the electrificationof suburban areas can involve communities isthrough the normalization program of the gridconnections in critical areas in Chile. In 2023,
as part of this program, more than 1,200 new
connections were created in the municipalities
of Lampa, Pudahuel, Colina and Maipú, providing
safe access to electricity for more than 4,000
people. In order to ensure safety in criticalareas and improve local living conditions, anumber of actions have been taken to provide
tools to overcome the vulnerability of informal

settlements (suburban areas, slumps, etc.)
and to reduce the energy poverty gap in the
Metropolitan Region. The main activities carriedout in collaboration with the community include
the construction of a community center withthe support of local NGOs to provide a spacefor socialization between the community, Enel
Distribución and the Municipality; craft, scrap
management and micro-enterprise programs
to help families find new sources of income;and regular training sessions on topics suchas energy efficiency and payment regularity,electrical safety, environmental protection,and climate change, supported by internal andexternal experts.

LEADERSHIP NETWORKIN FLORENCIO VARELA,ARGENTINA
In addition to its industrial activities, the Group
engages local communities through various
listening and proactive support channels to
pursue the goal of access to energy for all, in
line with SDG 7. For instance, in Argentina, the“leadership network” serves as a vital link between
the company and communities, especiallythose in vulnerable situations. Facilitated by“neighborhood leaders” and relationships withformal and informal organizations representing
community interests, this network promotes
ongoing communication between the Groupand the local area, helping to identify andaddress local needs, solve critical issues, andbuild a stable relationship. For instance, in 2022,
a community leadership network was activatedin Buenos Aires. In 2023, the network was thenstrengthened and expanded to include three
additional neighborhoods: Barrio La Esperanza

in the Municipio de Quilmes, Barrio el Triunfo
in the Municipio de Esteban Echeverria, andBarrio Ginebra in the Municipio de Lomas deZamora. The goal is to support the normalizationof networks, which means ensuring consistentenergy access for new customers living in
critical areas and having an irregular connection.
Community leaders take action by raisingawareness, advising and solving specific claims,
promoting the efficient use of energy, and, moregenerally, addressing issues affecting citizens
with regard to public electricity services and otherissues that impact the community.

Engaging communities

225

SUSTAINABLE
INFRASTRUCTURESAND SOCIO-ECONOMIC
DEVELOPMENT(SDG 8)AGRIVOLTAIC SYSTEMS,
USA AND AUSTRALIA
An example of a virtuous relationship with thelocal area is the coexistence of photovoltaic
plants and agriculture in Aurora, Minnesota(USA) and Cohuna in Australia. These sites were
designed from the outset not only to produce
photovoltaic solar energy, but also for other land

use-related purposes, such as environmental andecosystem-related services by planting native
vegetation or pollinator-friendly crops, resulting
in mutual benefits (for more details, please referto the chapters “Roadmap towards natural capitalconservation” and “Innovation”).

HORTAS EM REDE,
BRASILE
Enel promotes the land sharing of its grid assets
and generation plants with local communities inorder to ensure that the Group’s infrastructureis smoothly integrated with the local area. In
Brazil, for instance, the “Hortas em Rede” projectcontinued in 2023: urban gardens were createdin vulnerable areas below electricity lines,
providing employment and income opportunities
for around 60 direct beneficiaries, and proposing
sustainable agricultural solutions for the
benefit of the community. At the same time,
infrastructure safety is ensured, the overall lookof the area is enhanced, and asset maintenanceexpenses can be optimized by entrusting the226

Sustainability Report 2023

management of the land to the community
for promoting the local area and its social andeconomic development.

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

APIARIES INPHOTOVOLTAIC PLANTS,
SPAIN
In Las Corchas, Spain, apiaries have been
installed in photovoltaic plants. With the help ofstartups, smart beekeeping solutions are being
developed here to protect biodiversity andensure sustainable land use. All profits from thesale of honey and artisan products go towards
social initiatives, also by involving people withdisabilities in the production process. With acapacity of around 70 beehives managed by local
beekeepers, the project also aims to introduce

Maria Inmaculada Fiteni Campos
Iberia, Head of Sust. Initiatives &Circular Economy Enel Green Powerand Thermal Generation

bee tourism and training in later phases topromote employment and entrepreneurship in
this field and in the local area.

“Endesa has patented the solar honey as part as ofits committment toward renewable energy projects
that promote integration in the local area based ona shared value approach, applying the criteria of thecircular economy and with the aim of turning ourassets into biodiversity reserves. In fact, multiple
forms of land use can coexist, whether for original
or industrial use, while also becoming a space fortraining, local entrepreneurship, and innovation”

COCOA EFFECT,COLOMBIA
In order to foster the entrepreneurial local
development in the areas surrounding Enel’sassets, the Group provides approximately 60
hectares of land to the “Cocoa Effect” project inColombia, in the area of the Quimbo hydroelectric
power plant. The Cocoa Effect is an inclusive,
sustainable, and replicable social development
model that aims to increase productivity andstrengthen the skills of cocoa-producing families
while improving their living conditions. In 2023,
around 830 farmers were involved in the project.
The initiative is built on a close multi-stakeholder
partnership that contributes to community
development, with a specific emphasis on women,

young people, and community leaders. For more
information, see the chapter “Managing humanrights”.

Engaging communities

227

CUSTOMER CENTRICITYDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLAR

MATERIAL TOPICS:SUSTAINABLE DEVELOPMENTGOALS (SDGs)

STAKEHOLDERS• Customer centricity• Customers

Enel’s goal is to encourage all customers to take an active role in the energy transition by ensuring greater awareness of –and control over – their consumption. With the support of technology, Enel provides customers with innovative solutions
that make the use of renewable electricity more accessible in homes, businesses and cities.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETSMAIN
SDGs

QUALITY OF CUSTOMER RELATIONS AND SATISFACTION OF THEIR NEEDS
Commercial claims (no./10k customers)(1)

177(2)

170 in 2024

9

Customer experience analysis ofvulnerable customers

In 2023, regarding main projects,
a market analysis on thecustomer experience of elderly
customers in Spain, and on the
inclusive electrification process in
Colombia have been completed

Customer experience analysis
of vulnerable customers with afinal qualitative assessment

9 10

New inclusive products and services

10 inclusive products andservices, such as: newaccessible services available
in stores in Spain, Brazil, andColombia, and commodity
offers in agreement withassociations of people withdisabilities in Italy

18 new inclusive products andservices in the period 20242026

9 10Training on slow shopping techniquesand methods to serve vulnerable
customers

483 Enel people in shops trained
to serve vulnerable customers
thanks to an increase of trainings
in Italy and an increase ofparticipation in Colombia (in the2022-2023 period)

600 Enel people in shops
by 2026 trained to serve
vulnerable customers(3)9 10Slow shopping initiatives, inclusive
stores, channels and methods tosupport vulnerable customers

130 shops and/or call centersthat use the slow shopping
method, thanks to new
initiatives adopted in stores in
Spain and Brazil (in the period2022-2023)

Target outdated

9 10

11

(1) Target included in the Top Management remuneration plan.
(2) Indicator subjected to reasonable assurance.
(3) Cumulative figure from 2022.

Goals

New

228

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

CUSTOMER
CENTRICITY
3-3

EU3

DMA EU (former EU23)

70.3 mil

540,000

583,000

DISTRIBUTION END USERS

NEW PROSUMERS(1) AND
PRODUCERS IN 2023

BENEFICIARIES OF 151,000
CONNECTIONS IN RURAL AND
SUBURBAN AREAS IN 2023

72.7 mil in 2022

-3.3%

of which 485,000 new connections
within Italy and Spain, equivalent
to 7.3 GW of capacity
345,000 in 2022(2)+56.5%

690,000 beneficiaries and 179,000
connections in 2022
-15.5%

300.9 TWh61.1 milno./10K market
177 (customers)

ELECTRICITY SOLDENERGY AND GAS CUSTOMERSCOMMERCIAL CLAIMS

321.1 TWh in 2022

-6.3%

66.8 mil in 2022

-8.5%

212 in 2022

-16.5%(1)

The term “prosumer”, a contraction of “producer” and “consumer”, refers to an individual or company that not only consumes goods or services, but also
produces them, for example, by installing photovoltaic panels to generate electricity.
(2) In line with the 2023 perimeter, the 2022 figures exclude Goiás and Romania.

Customer centricity

229

Electricity market customers

Gas market customers

Total

no.

54,949,296

6,168,728

Italy

no.

18,559,867

4,339,943

Iberiano.

10,521,874

1,828,762

Latin America

no.

25,867,555

23

2023

2022

2023-2022%

Electricity sold by Enel

TWh

300.9

321.1

-20.2

-6.3%

of which free market

TWh

194.5

198.3

-3.8

-1.9%

Retail customers

no.

61,118,024

66,784,895-5,666,871-8.5%

of which free market

no.

24,320,725

27,864,392-3,543,667-12.7%

Enel’s leadership is fundamentally driven by a strongemphasis on customer centrality, encompassing households, businesses, and local public administration, regardless of whether they consume or generate energy. Consequently, the Group is committed to maintaining ongoingengagement with its customers, whether they are connected to the distribution grid or part of the energy and/or gas market.
Enel operates the electricity distribution grid globally
through the Enel Grids Business Line, which serves morethan 70 million customers. As a grid operator in European
markets, where there is a separation between distribution and sale of energy, Enel not only serves its own sales
contract customers, but also customers who have supply

contracts with other operators. Moreover, the Group iscommitted to the path towards energy transition, bringing
electricity generation closer to the end user, by promoting
producers and prosumers, i.e., energy consumers who arealso producers, who can both generate electricity for theirown use and sell it to the grid. In 2023 alone, Enel Grids
reached a record of almost 540 thousand new producer
and prosumer connections, up 56% on the previous record achieved in 2022 on a like-for-like basis. Every month,Enel adds around 45 thousand new connections to its
distribution grids from producers and prosumers in Italy,
Spain and Latin America. Italy is still Enel’s most dynamic
market: throughout 2023, almost 1,000 new distributed
generation connections were added per day, bringing thetotal number of producer and prosumer connections toaround 1.5 million.
In addition to grid management, Enel is also involved in the
supply of electricity and gas, operating in both the regulated and free markets. At the end of 2023, the number ofretail energy and gas customers was 61 million (67 million
in 2022), of which more than 24 million were free market customers. The decrease in the number of customers,compared to 2022 (-8.5%), is largely due to the end of theregulated utility market in Italy; for the free market, the decrease was mainly due to the sale of the business unit in
Romania (around 3 million customers).
Energy sales reached 300.9 TWh in 2023 (321.1 TWh in2022) – down 6.3% compared to the previous year, which
was however less than the drop in the number of customers. Enel serves households (B2C), public institutions (B2G)
and businesses (B2B) and has an integrated presence, offering an all-round service between commodity and energy solutions, in five countries: Italy, Spain, Chile, Colombia
and Brazil. In other Countries and Regions, such as North
America, Asia Pacific, Poland, the United Kingdom and Ireland, Enel provides products and services mainly aimed atbusiness customers.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

Customer centricity
The energy sector is undergoing a major shift where consumers are becoming key contributors to both energy
generation and consumption. Power plants are also morecompact and dispersed than before. Grids will therefore
have to adapt to handle the variable and decentralized nature of renewables, at multiple entry points, relying on theparticipation of prosumers in the evolution of the electricity system. To ensure a flexible grid and high service standards, Enel is pushing for ever greater digitalization, bothto foster the development of renewables and to support
customers in the path toward electrification, leveraging
the opportunities provided by emerging technologies.
Enel also has the task of promoting access to a sustainable, reliable and secure electricity service, ensuring that
this service reaches the greatest number of customers,
including those at risk and the most vulnerable. With thisin mind, Enel supports electrification processes, bothin mature contexts and in rural and remote areas where
there are communities living without electricity, as wellas connection standardization processes, so that no one
is left behind. It also strives for inclusiveness of the services and products offered and to create shared value inthe communities and areas involved. In this regard, around
583 thousand new beneficiaries were registered in ruraland suburban areas by 2023.
Moreover, Enel aims to meet the needs of retail customers in a comprehensive, effective and structured manner,
starting by listening and identifying their needs, and taking
into account the target in scope as well as their respective
geographical and social context. The use of specific analysis tools and artificial intelligence enables a dynamic segmentation of customers to understand their habits, expec-

tations and consumption styles, making it possible to develop increasingly customized products and services. Thisway, it is possible to unlock local development potential byleveraging the specificities of local territories to offer more
attractive solutions and savings opportunities and, in thecase of companies, new business opportunities too.
To stay apace with the evolving market, Enel encourages
the active participation of customers in the energy transition by raising awareness of their consumption and providing greater control over it. With the support of technology, innovative solutions are made available to customers,
which make the use of renewable electricity increasingly accessible and widespread in homes, businesses andcities, while accelerating the digitalization of services for
greater energy efficiency, thereby helping to achieve decarbonization targets.
In order to increase its customer base and build customer loyalty, Enel has established a customer experiencestrategy based on the simplicity and accessibility of its
contact channels (see the section on “Focus on vulnerable groups”), through clear communication, rapid and exhaustive responses, and timely and effective resolution ofrequests (see the section on “Transparent relations”). By
integrating the offers and merging the interaction channels, greater efficiency in customer services is enabled interms of attention to needs, administration and satisfaction. In February 2023, Enel Energia in Italy was awarded
the “No. 1 in Service” quality seal by the German Institutefor Quality and Finance, which conducted a study on theElectricity and Gas sector in Italy based on a sample ofover 300 thousand customers(3).

Solutions for retail customers
Regardless of geographic and segment differences, recent
geopolitical events, increased price volatility and rising energy costs have increased the need for Enel customers to
improve consumption efficiency by containing costs andmaking spending more predictable, to make informed
and increasingly environmentally sustainable choices, toseek greater security at home and in public spaces andto adapt to local laws and regulations, so as to make themost of the opportunities offered by a fair and sustainableenergy transition. To meet these needs, Enel has createddedicated access channels by setting up a single contact
for each target customer, who is able to respond to specific requests with customized and integrated products andservices. Furthermore, with a view to containing costs andenvironmental impact, Enel has continued to support thefirst Renewable Energy Communities (see the section on“Renewable energy communities”) by creating and managing the Community or constructing photovoltaic plants
to serve the Communities themselves.

(3) https://www.enel.it/it/supporto/avvisi/campione-servizio-2023.

Customer centricity231

Households and micro-enterprises –Focus on bills and energy efficiency
This segment includes households and micro-enterprises in
Italy, Spain, Brazil, Colombia, Chile, Argentina and Peru, witha predominance of free market customers in Italy and Spain(in contrast to Latin America, which has an almost exclusively regulated market). This type of customer is increasingly aware of the importance of making informed and responsible energy choices. To meet this need, Enel leverages
its customer care channels and provides content explaining price variations and – where possible in non-regulated
markets – information on possible subsidies and incentives
for customers in vulnerable conditions (see the paragraph“Focus on vulnerable groups”) or on more convenient offers
and solutions for their consumption profile.
Several initiatives were taken in Italy, such as the launch of
the Simulatore Risparmio Energia (energy saving simulator)– an online tool to calculate the benefits of electrificationin both economic and environmental terms. The increased

focus on costs has also driven customers to prefer bundled offers, which integrate the supply of electricity, gas
and ultra-fast connection (see the box “Enel Fiber Productof the year 2024” in the chapter “Business drivers”) withtechnological solutions for energy efficiency, such as theinstallation of photovoltaic plants, which ensure bill savings along with greater simplicity and efficiency. In Italy,
for example, Enel launched the initiative “Tutto Enel, èFormidabile” (Everything Enel, it’s Formidable”), which integrates electricity and gas offers with ultra-fast connection, solutions for electrification, renewables and homecharging for electric cars. Similarly in Spain, Enel launched
an integrated offer with the “Todo Cuenta” (Everything
Counts) campaign, which offers various billing advantages
to customers who decide to buy a photovoltaic system.
Lastly, in Latin America, Enel is also promoting the electrification of uses by supporting local customers to switchfrom inefficient technologies that often use fossil fuels orpose health risks, to highly-efficient electric solutions (seethe box “Programa de Recambio in Chile”).

Government bodies – Security and qualityof life for citizens
Customers in this segment are mainly public administrations and are spread across three main areas: Italy, Spainand Latin America (Chile, Colombia and Brazil). In Latin
America, Enel works mainly with the bodies governing
large metropolises, while in Italy the customer base islargely made up of small and medium-sized municipalities
seeking new and efficient technological solutions. Spain
is in the middle, with several projects in medium to large
municipalities.
The solutions dedicated to this segment support the
adoption of programs serving citizens, improving their
quality of life in terms of environmental and social impact and ensuring more efficient services, safety and air
quality. To this end, Enel supplies diagnostic tools andintervention plans that make it possible to monitor the
performance and improvements of the local area, as well
as specific technical expertise for the planning and implementation of projects such as for smart cities (see thechapter on “Innovation”). Enel has also developed a portfolio of integrated products and services to make energy
consumption more efficient, optimize costs and reduce
CO2 emissions, structured into three technology verticals:• Smart Lighting & Smart City for the procurement ofenergy for the public lighting service, aimed at improv-

232

Sustainability Report 2023••

ing energy performance. This also includes the related
operation and maintenance, as well as additional smart
city services, such as smart sensors or traffic lights,
cameras and other monitoring systems that can also beaccessed and managed through the YoUrban platform(see the “Innovation” chapter). Enel also collaborates
with several municipalities in development of artistic
lighting projects to enhance local cultural heritage;eTransport to promote the deployment of infrastructure and technologies that facilitate the electrificationof public and private fleets, primarily targeting municipalities, public and private transport operators and fleet
managers for logistics services, to reduce air and noise
pollution and improve urban mobility services (see “Parking sensors” box). In Italy, the focus is on the development of faster public charging network, while in Chile,
proposed solutions also aim to improve the functionalities of bus stops and shelters, increase safety at nightand reduce damages caused by vandalism. Lastly, arange of services tied to LED screens to spread public
utility information was developed in Chile and Colombia;
Smart & Efficient Buildings focuses on providing solutions that increase the efficiency, comfort and safety of
public buildings, enabling local municipalities, universities and public hospitals to reduce energy costs thanks
to greater efficiency and smart consumption management, while also lowering emissions.

1

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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

PARKING SENSORSA CUSTOMER-CENTRICREVOLUTION FOR
PUBLIC CHARGINGINFRASTRUCTURE

IOT SENSORS INTEGRATED WITH CHARGINGSYSTEMS TO MITIGATE DISRUPTION CAUSED BY
PARKING STALL SQUATTING.
The integration of IoT sensors with Enel’s publiccharging network shows customers the real-time
availability of parking spaces reserved for charging
electric vehicles. Through this project, Enel is one of
the first Charging Point Operators (CPOs) to provide
up-to-date and accurate information on the physicalCompanies – Increased competitivenessand decarbonization of generation
processes
Customers in this segment are mainly distributed in Italy, Spain, Brazil, Colombia and Chile, where there is an integrated presence, while in other Countries and Regions
such as North America, Asia-Pacific, Poland, the United
Kingdom and Ireland, Enel is present with specialized services, mainly demand response, levering on partnership or
stewardship business model.
Companies need to reduce risks tied to energy price volatility and boost competitiveness through cost reduction,
as well as diversify their energy sources in order to decarbonize industrial processes, avoid CO2 emissions, and embark on a path to Net Zero that can meet not only legislative requirements but also the expectations of customers
and investors. To support these goals, Enel offers technical expertise and solutions for fleet electrification, energy
performance diagnosis and monitoring, renewable energy

availability of its charging points, not only to end
users to improve the customer experience, but also
to local law enforcement agencies with the aim ofresolving the issue of parking space stalling. Thissolution was launched on a trial basis in Italy in July
2023, in some areas of Rome, and is being extended
across the city with the goal of integrating otherfuture developments such as app services to bookthe charging point.

generation and storage, and flexibility, from the planningstage right through to project implementation.
In 2023, Enel achieved 268 MW of photovoltaic capacity
at its industrial and commercial customers, and 9.6 GW in
flexible capacity managed through demand response. Demand response is a tool that allows direct intervention onenergy generation and consumption levels to cope with
supply reductions or peaks in market demand: industrial
and commercial customers are paid for their availability,
and the electricity grid benefits from greater stability andintegration of renewables.
In Italy, the introduction and regulation of Energy Communities will enable companies to play an increasingly
proactive role in the energy transition (see the chapter
on “Energy communities” for further information). In Latin
America, especially Chile, there is a focus on electrificationof company bus fleets for companies to cut emissions on
employee transportation.

Customer centricity

233

Renewable Energy Communities:
the emergence of cross-customers
Enel supports the creation of Renewable Energy Communities (RECs), which are legal entities that are createdthrough the association of citizens, local governments orbusinesses who decide to set up plants for the generationand sharing of energy from renewable sources. RECs are an
example of how, in the energy sector, customers are taking
an increasingly active role and how government incentive
mechanisms can stimulate the construction of larger photovoltaic plants designed for self-consumption and shar-ing, as well as the electrification of final consumption.
Enel supports companies, municipalities and citizens
through the entire process, from the design and installation of renewable plants, to their operation. In 2023,
Enel supported the creation of 6 RECs, including thosein Maranello, Fiorano Modenese and Buccino, which may
become operational following the publication of the technical operating rules by the GSE (Gestore dei Servizi Energetici).

ENERGY COMMUNITIES:
ENEL’S PARTNERSHIPS

Enel and Ferrari, a world leader in the luxury sector,
have entered into an agreement to build the first
Renewable Energy Community in the industrial sector
in Italy: the REC will be powered by a photovoltaic
plant with a capacity of around 1 MW located ona plot of around 10,000 square meters owned by
Ferrari, adjacent to the Fiorano Modenese racetrack.
The photovoltaic plant in Fiorano Modenese will use
single-axis trackers and double-sided photovoltaic
panels for an average production of around 1,500
MWh for 20 years, avoiding around 440 tons of CO2
being emitted into the atmosphere per year.
Through this partnership, public or private entities in
the municipalities of Fiorano Modenese and Maranello
will be able to join the REC using the renewableenergy generated by the new plant and/or become
green energy producers themselves, for example byinstalling photovoltaic panels on the roofs of theirhomes and connecting them to the grid.

234 Sustainability Report 2023

Enel and FICEI (Federazione Italiana Consorzi Enti
Industrializzazione) have signed a partnership tocreate a Renewable Energy Community made up ofcompanies in the Industrial Development Area (ASI)of Buccino, in the province of Salerno. The REC was
created following an analysis of ASI’s land area andenergy needs of its member companies, particularly
those which are more energy-intensive or which
operate in hard-to-abate sectors; it will be poweredby two photovoltaic plants with a total capacity of 1.6
MW, generating around 1,250 MWh for 20 years andavoiding 367 tons of CO2 per year. One Community
member and founding partner is the Magaldi Group,
which supplies the storage batteries, thereby
optimizing the REC’s performance and creating
a synergy between entities in the same industrial
development area.

1

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Stakeholder engagement andmateriality analysis

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Appendix

Focus on vulnerable groups
2-29

3-3

DMA EU (former EU23)

The whole Enel Group is committed to a ‘fair for all’ energy
transition, ensuring access to electricity even in the mostremote areas and supporting those in vulnerable conditions,through specific and inclusive services in line with its Human
Rights Policy. To ensure an integrated approach in this direction, Enel has developed a Group-wide perspective on customer needs in terms of inclusiveness and accessibility. This
includes the introduction and consolidation of a definition of”vulnerable customers”, which emphasizes the specific conditions of customers, whether temporary or permanent. For
Enel, vulnerable customers include both people and entities
which, as a result of the interaction of their intrinsic characteristics, socio-demographic factors, and economic and en-Emergency management
In 2023, a number of critical weather eventsoccurred that affected the distribution grid andcaused service interruptions resulting in damage
to customers. In particular, critical events occurredin the metropolitan area of São Paulo and Rio deJaneiro in Brazil and in Italy between Emilia andRomagna.
In Brazil, a violent windstorm struck the Enelconcession area of São Paulo and Rio de Janeiro
for three days in early November, causing power
outages for 2.1 million citizens in the São Paulo areaand 1.2 million in Rio de Janeiro. It was the strongest
storm in recent years, with winds reaching speedsin excess of 100 km/h, and caused the felling of
more than 1,400 large trees. Due to the complexityof the grid repair work, supply was restored
gradually, prioritizing the most critical areas, suchas essential services.
Despite the efforts of employees and contractors,
the restoration work was particularly complex andtook around a week. This was due both to the highpopulation density and the difficulty in reaching

In the same vein, in 2023, following the application of the
Sustainability Boosting Program® (see box) to Enel stores,
the internal Guidelines for inclusive customer relations
were drawn up, and designed to understand and anticipate the needs of this target and help to improve thecustomer services and experience in Enel’s “design forall” stores. Launched in September 2023 in all countries

vironmental conditions:• cannot participate or are at risk of suffering adverse
outcomes in the energy market or in any of the EnelGroup’s areas of interest;• have difficulty obtaining or using information to represent their interests;• are less comfortable accessing and using appropriate
services and products.
Conditions of economic and social vulnerability due totemporary circumstances, such as earthquakes (see box“Emergency management”), floods, disabilities, and otherdiversity-related issues such as age, were found to havethe highest incidence among Enel’s customers.

areas impacted by downed trees, requiring
coordinated efforts with multiple bodies including
Civil Defense, the Fire Department and the Police.
In areas of Emilia-Romagna in Italy, last May there
was an intense flood of 4 billion cubic meters ofwater over an area of 1,600 km2. To address the
emergency, e-distribuzione managed to re-poweraround 55 thousand utilities, providing morethan 170 generators, reconstructing 3 primary
substations (total reconstruction of the primaryplant in Conselice in the province of Ravenna
and partial reconstruction of 2 other primary
substations between Forlì-Cesena and Ravenna),cleaning and completely reassembling more than
300 secondary substations, and restoring morethan 100 km of medium voltage lines and 10
thousand meters. Moreover, thanks to the directintervention of the non-profit organization Enel
Cuore and employee fundraising, Enel made adonation of 1 million euros to Civil Defense, which
was committed to helping those affected by
the flood and worked to restore normalcy to theaffected areas.

where Enel operates, these guidelines focus on both customer interaction and store accessibility.
To ensure their adoption and dissemination, a dedicated training course was designed and delivered in Italy
to around 70 operators of Enel direct spaces; while thecourse content was made available to Enel indirect spaces
managed by partner entrepreneurs through their publica-

Customer centricity

235

tion on Enel Energia’s digital platform Enel Flow. Also in Italy, the first tools to support the strategy for inclusive communication with customers, video interpreting services insign language for deaf people and simultaneous translation in 7 languages were rolled out in pilot mode and madeavailable in various geographical areas (Bologna, Naples,
Cosenza, Albano and Rome) as first tools supporting thestrategy for inclusive communication with customers. The
telephone interpreting service was also reactivated in the
100 direct Enel spaces, which translates into 20 languages
through a ‘three-way conversation’ between the operatorof the Enel space, the customer and the translator. Other
inclusive business initiatives implemented in Italy in 2023
include the Light/Gas and Fiber Offer for members of associations for the protection of people with disabilities(4),which provides subsidized pricing and a dedicated accesschannel at points of sale. ENELPREMIA WOW! For All is
an initiative launched in 2022 and renewed in 2023, which
includes occasional discount coupons under Enel’s loyalty

Sustainability Boosting Program®
and Columbia University
The Sustainability Boosting Program® applies theprinciples of circular economy, social inclusion
and biodiversity to the Enel Group’s portfolio of
solutions, to improve their sustainability while
creating a competitive advantage and new business
opportunities.
In 2023, Columbia University reviewed and compared
the Sustainability Boosting Program® with programsof other prestigious companies and organizations
operating in the market, in order to verify thesoundness of the program and identify possible areas
for improvement. It emerged that the social inclusion
dimension of the Sustainability Boosting Program®
is more complete and detailed than other reference

program for the free market, providing access to services
dedicated to seniors and people with disabilities.
The WOW STORE project was implemented in Brazil,
making the Enel store in Santo Amaro (São Paulo) more inclusive, thanks also to the collaboration of the City of São
Paulo. Staff were trained on serving vulnerable customers
and store accessibility was improved. The store also introduced the option to sign up for the municipality’s social
initiatives and easily apply for the social tariff. The Ecoenel
program is also part of the initiative which promotes electricity bill discounts for customers who properly sort theirwaste in dedicated collection and recycling points.
In Spain, the Energy poverty training for NGOs and social
services project was launched, with 19 training sessions
provided to 370 people from social entities that assist
people in vulnerable conditions (around 70 thousand beneficiaries) to teach them how to improve energy efficiency,
better understand bills and apply for the social bonus.

frameworks used at the product level, demonstrating
Enel’s focus on customers listening and inclusion.
Another strength identified by the Columbia University
team is the involvement of various stakeholders
throughout the Boosting process, which made it
possible to capitalize on the specific geographic andmarket contexts, as well as to create the right mixof technical and business expertise for an effective
innovation process. The analysis conducted on the
Sustainability Boosting Program® can be found in anarticle published on Columbia University’s blog. The
program was also showcased as part of a masterclass of the World Business Council on Sustainable
Development (WBCSD), attended by around 60
network companies, which particularly appreciatedthe program’s innovative methodology for generating
inclusive company products and services.

(4) ANGLAT (Associazione Nazionale Guida Legislazioni Andicappati Trasporti) and ANMIC (Associazione Nazionale Mutilati e Invalidi Civili).

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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

Transparent relations
2-23

3-3

417-1

DMA EU (former EU24)

Enel is continuing its process of digitalization of customer
relations to improve the customer experience while also
meeting its commitments to mitigate the effects of climate change.
As part of distribution customer management, in 2023
customer master records were reviewed and updated in
Latin American countries to minimize possible billing errors. Several recovery strategies shared with the market
were also adopted to increase credit efficiency. 2.2 million
reconnections were performed (vs. 3.4 million disconnections), with a 99.5% compliance rate on reconnections
performed within regulatory deadlines, aimed at reducing claims. To counter the effect of delays in the execution of connection work due to an increase in producer
connection requests, a special caring and feedback collection (Voice of customer) initiative for Enel customers
was launched with surveys and data analysis to identify areas for improvement. To respond to the increase incalls in emergency situations, given the various episodesof environmental disasters impacting the countries where
Enel operates as a distribution grid operator, proactive
customer communication measures were taken and IVR(Interactive Voice Response) automation was improved,
enabling effective management of peaks in inbound calls(see box “Emergency management”).
As for the retail market, in 2023 more than 18 million digital
customers registered on the private area of the website
and/or app (43.7% of the entire customer base), up approximately 20% over the previous year. This makes cus-

tomers more autonomous in managing services such as
viewing consumption, reading meters, paying bills andinstallment payments, in turn improving customer satisfaction. In 2023, 227 million bills were sent in digital format– an increase of around 18% over 2022, amounting to 37%
of all bills issued. This not only reduced the costs of paper,
printing and delivery of traditional bills, but also reduced
CO2 emissions related to these activities. To improve thecustomer experience, the invoice format was also revisedin Italy to make it clearer and easier to understand (seechapter on “Innovation”). After last year’s pilot, customer
recognition through biometric factors was brought to fullscale in Spain: to ensure secure and inclusive access tothe services offered, voice recognition is being adopted
as an element of customer authentication in call centers,
improving personalization, emotional engagement andaccelerating the resolution of customer needs. In 2023,
digital payment channels were further strengthened tofacilitate and enhance the customer experience, and the
proportion of payments made by direct debit reached38.7% of all payments. In Brazil, the Pix payment channel,
created by the Central Bank of Brazil to facilitate instant
payments, was developed and is widely used throughout
the country. In Italy, a link to one-click payments throughthe national digital platform PagoPA was included in digital credit communications. Lastly, great attention was paid
to the possibility of flexible installment plans to meet thevarious needs of customers with respect to the context ofeach country.

Clear and effective communications
The Plain Language initiative was created with the goal ofbuilding customer relationships based on trust and credibility thanks to clear and transparent communications in
all contact channels (in person, apps, websites) for commercial and operational information. In an increasingly
complex environment, clarity of communication is essential for establishing lasting relationships and ensuring thatevery interaction with customers uses direct and unambiguous language. In 2023, the first major steps were taken to improve the clarity and effectiveness of Company
communication. Below are the main initiatives undertaken:• global guidelines: basic principles for writing, testing and measuring the effectiveness of communications written in plain language were identified (see the“ViviElettrico” box);

ViviElettrico
ViviElettrico.it is a “digital help desk”
that helps customers find the answers
to questions related to energy choices
for domestic consumption and makeinformed decisions, clarifying the mostcommon doubts on: photovoltaics,
efficient homes, bill saving, electric
mobility, incentives and electricity use.
In 2023, the portal had more than 250
thousand unique visitors.

Customer centricity237

• action plans in Italy, Brazil, Spain, Chile and Colombia:•

priority areas were identified in which to adopt the methodology, with the launch of testing in all customer contact
channels. Training sessions were carried out involving morethan 200 colleagues to build internal technical expertise;monitoring tools: tools were used to check the readability of texts and assess customer perception of theclarity of information received. In addition, a dashboard
was developed in Italy and Brazil to monitor the language used by consultants in call centers.
Data collected from trials show an improvement in customer satisfaction and perception of the service received,
confirming the commitment to transparent and accessible communication.

Customer satisfaction
2-29

3-3

417-1

In 2023, the customer happiness and satisfaction measurement system, consisting of relational and transactional factors, was consolidated and further refined.
In terms of relational aspects, Enel relies on the global Net
Promoter Score (NPS) standard to measure the overall level of customer happiness and “advocacy” through simple
and immediately understandable data. This is based on aquestion asked to customers (“On a scale of 0 to 10, would
you recommend Enel to your friends and family?”) and isexpressed through a number ranging from -100 to +100,
calculated as the percentage of “promoters” (rating 9 or
10 out of 10) minus the percentage of “detractors” (rating 0-6 out of 10). Customers are surveyed twice a year
to maximize responses and monitor trends over time,through an email survey – a channel that allows more realistic and reliable values than telephone surveys. The NPS
survey has global coverage, and both local and global results are constantly monitored.
For the detailed monitoring of satisfaction on “transactional” aspects – i.e., at “moments of truth” (such as thecompletion of activation, interaction with the contact center, delivery of the bill, power increase) – Enel’s customers
are surveyed by e-mail or via the website/app, asking themto express their “Customer Satisfaction” (CSAT) with thestandard question “On a scale from 1 to 5, how satisfied
are you with the ‘moment of truth’?”, calculated as the average of all responses received.
The measurement system (which in 2022 completed coverage in Italy and Spain with more than 30 “moments oftruth”, was further refined in 2023, reaching 9 “moments oftruth” in Brazil, Chile and Colombia. In all Countries and Regions, thanks also to the collaboration between the dedicated Customer Happiness team and the various business
units, it has now become standard practice to constantly
monitor happiness and satisfaction values and level – now
integrated not only into the operational processes of activation, billing, credit and collection, and customer care,
but also in marketing and sales activities.
In terms of results, there was a slight decrease in the Global Net Promoter Score from +5.6 (Q4 2022) to +4.7(5) (Q42023) compared to the -100/+100 range. Considering thecomplex phase that the sector in which Enel operates underwent in 2023, and the resulting increase in householdenergy expenditure, these NPS values indicate that thecustomer base has substantially maintained its trust in the
Enel brand and its levels of service.

Management of commercial claims
2-25

2-26

2-29

3-3

In 2023, the guidelines adopted in previous years on the process of monitoring and classifying claims were consolidatedon all Business Lines in all countries where Enel operates, inorder to maximize service quality and increase customer satisfaction in accordance with applicable laws, regulations andrules of governance.
Over three years, the number of registered commercial claims
per 10 thousand customers related to services and products

decreased globally by 50%, thanks to the combination of processes geared towards a more effective and efficient common
model based on first contact resolution, the development ofinternal benchmarks, and ongoing performance monitoring.
These results were also achieved through actively listening tocustomers, who assess the Company’s ability to resolve theparticular issue thanks to a new standardized feedback model.
Also with regard to distribution service management, Enel is(5) Average value calculated based on all responses received in the last 3 months of the year.

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committed to putting in place solutions aimed at increasing
customer satisfaction by reducing customer claims and focusing on the speed and comprehensiveness of responses,
as well as the timely and effective resolution of requests. With
this in mind, in order to ensure increasingly effective customer management, the customer engagement unit was set up,
one of its main objectives being to manage interactions withcustomers through all channels (digital and otherwise), maximizing their potential, and increasing their trust and satisfaction, including by properly defining and targeting the various
customer segments.
To reduce customer claims, a number of initiatives were also
taken in 2023 to improve the overall customer experience. In
Italy, investments were made to improve processes and train

4

Performance 2023

5

Appendix

staff to ensure high-quality customer service and in-depth
knowledge of the services offered.
Enel complies with current customer privacy regulations in all
the countries where it operates. The Company also strives tomonitor third-party companies that may be in a position to use
the personal data of customers. To this end, dedicated clauses
are included in contracts with partners who use personal data
to carry out specific activities, such as sales services or customer happiness surveys (see paragraph on “Customer satisfaction”). Customer data is an expression of the individual’s
personality and identity, and must therefore be treated withdue caution and guarantees, as also outlined in the Human
Rights Policy.

Promoting access to energy andcombating energy poverty
3-3

DMA EU (former EU23)

Access to energy is a challenge and a primary need asstated by the United Nations in SDG 7. This aims to ensure access to affordable, reliable, sustainable and modern energy systems for all, due to the role these play as adriving force for fighting poverty and ensuring long-term
economic and sustainable growth.
The 2023 update of the “Energy Progress Report”, whichmeasures the progress of SDG 7 and is co-processedby the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations
Statistical Commission and the World Bank, once again
confirms that the current pace of progress in terms ofthe 2030 goals regarding energy access, energy efficiency
and renewable energy, among others, is not fast enough.
Among the reasons for the slowdown on the required
roadmap are the uncertain macroeconomic scenario, highinflation, lack of sources of finance, and soaring prices ofmaterials. In some parts of the world, particularly the mostvulnerable, a residual effect of the Covid-19 pandemic lingers, along with the soaring energy prices experienced
since 2021.
Halfway to achieving the 2030 Agenda goals, indicator
7.1.1 “Proportion of population with access to energy” is

off the roadmap, with 675 million people(6) still without access to electricity.
Enel is committed to ensuring that as many people aspossible have access to energy, both by using traditional means (connections to the electricity distribution grid)and by developing off-grid solutions, which enabled theCompany to connect around 583,000 people in rural andsuburban areas in 2023.
The main responsibility for guaranteeing safe and economic access to basic energy services obviously lies withgovernments, but the electric sector is also called on toprovide a tangible contribution by promoting sustainablesocial-economic development.
Enel works together with governments and local institutions to combat energy poverty and facilitate access toenergy for customers in vulnerable conditions in all thecountries in which it operates. It does this through specificinitiatives to support the deployment of energy efficiency
and responsible consumption solutions, the modernization of infrastructure and the growth of renewable energy sources, in line with the Group’s sustainable businessmodel and its commitment to a just transition.

(6) 2021 data.

Customer centricity

239

In this respect, Enel’s approach has two lines of action:
Pro-active measures aimed at anticipating critical situations through:• new offers that restructure prices and reward reduced
consumption;• support for vulnerable customers in accessing the benefits offered to them;• initiatives to disseminate practical tips for reducing
consumption, etc.
Reactive measures for ad hoc interventions when criticalsituations arise:• suspension/deferral of payments;• access to tax bonuses or credits for customers in economic difficulties or affected by natural disasters.
In Spain, for example, through agreements with 7 Autonomous Communities, 2 municipality associations and the
Red Cross, Enel is working along with social services toprovide support to people in vulnerable conditions. Whensocial services identify a situation of need, Enel blocks
collection processes and possible disconnections due tonon-payment until the necessary aid is provided to pre-vent such outcomes. Enel also facilitates the adoption of
payment plans and deferments that allow bills to be paid
within 24 months. Similar initiatives have also been pursued in Portugal.
Conversely, in other countries Enel’s commitment to fostering access to energy involves not only providing electricity, but also delivering innovative and clean technologies to the population in order to generate energy with
reduced impact on the environment. For example, in Latin
America about 2,308 MW from renewable sources cameinto operation in 2023, bringing the total renewable capacity to about 22,665 MW. In Africa, Enel Green Power iscurrently the leading private renewable operator in termsof installed capacity (about 2,100 MW in operation) with apresence in several countries. In Asia, the Group is present in India through its subsidiary EGP India, one of thecountry’s main renewable energy companies, which owns
and manages 340 MW of wind capacity and 420 MW ofsolar capacity, producing approximately 1,382 GWh a year
in Gujarat and Maharashtra.

PROGRAMA DE RECAMBIOIN CHILE
AN INITIATIVE TO REDUCE
THE CLIMATE FOOTPRINT OF
CHILEAN HOUSEHOLDS BYSUBSTITUTING AND RECYCLING
OLD WOOD STOVES“Programa de Recambio” is a national initiative
managed and funded by Chile’s Ministry ofEnvironment(7). It provides free replacement of woodstoves to reduce local pollution, thereby improving thehealth and quality of life of communities. In supportof this initiative, since 2017 Enel has enabled morethan 21,000 households to replace their woodstoves
heating with an energy-efficient, safe and sustainable
heat pump air conditioner.

During 2023, Enel installed more than 5,000 new
air conditioners, replaced over 21,500 stoves andavoided the emission of more than 50,000 tonsof CO2 since the program started(8). Through therecovery of decommissioned stoves, the program has
also enabled the recycling of more than 1,900 tons ofwaste. Following a circular economy logic, this waste isthen used to produce steel bars for the constructionindustry.

(7) The initiative is part of the Emissions Compensation Program (ECP), a mandatory legal instrument to offset corporate emissions. It is organized and fundedby the Italian Ministry of Environment and Energy Security, in which Enel X has been chosen as a provider for program development.
(8) Data calculated as the sum of savings generated in one year by heat pumps installed between 2017 and 2023.

240 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s governance to promote access to energy
Enel’s commitment to ensuring energy access is also confirmed in its 2024-2026 Strategic Plan through the definition of specific objectives, including an increase in renewable sources, the development of sustainable and circular
products and services. In synergy with the Strategic Plan,
Enel defines the Sustainability Plan’s goals and commitments, which contribute to the achievement of the United
Nations’ 17 Sustainable Development Goals. The Sustainability Plan’s objectives are subject to periodic analysis andmonitoring by the Board of Directors by means of the Corporate Governance and Sustainability Committee (see the

Corporate Governance report, available at www.enel.com).
The Group is engaged in realizing these strategic objectives by contributing towards support for the global challenge of guaranteeing access to energy. In support ofstrategic goals, each Country is responsible for managing
relationships with institutional bodies, regulatory authorities on a national, regional and local level, and associations
for promoting the development of solutions for access toenergy according to different needs and through innovation activities.

Customer centricity

241

HEALTH AND SAFETY OF PEOPLEDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLARSUSTAINABLE DEVELOPMENTGOALS (SDGs)

STAKEHOLDERS

MATERIAL TOPICS:• Occupational healthand safety• Health and safety

The Group is committed to putting the health and safety of Enel people and contractor companies first, by promoting astrong culture of occupational health and safety.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETS

MAIN
SDGs

HEALTH AND SAFETY OF ENEL PEOPLE AND CONTRACTOR COMPANIESInjury frequency rate with more than 3days of absence from work (combined
employees and contractor companies)(1)N.A.

< 0.41 in 2024

Weighted frequency rate of workplace
injuries with more than 3 days ofabsence (combined employees andcontractor companies)(2)N.A.

<0.44(3) in 2024

Own workforce coverage (Enel employees
and contractor companies employees)with a certified health and safety
management system

N.A.

Enel employees ≥94%
Contractor companies
employees ≥96%

Extra Checking on Site (ECoS) on safety

101 ECoS on safety carried out

59 ECoS on safety in 2026

Health and Safety Project1 initiative carried out

1 initiative per year in the
period 2024-2026

Contractor companies’ engagement

N.A.

1 initiative per year in the
period 2024-2026

Reduction in injury frequency rates
compared to previous years (LTIFR)(combined employees and contractor
companies)(4)0.61(+22% vs LTIFR 2022)

Target outdated

Evaluation Groups (EG) proactive
towards contractor companies

54 Evaluation Groups

Target outdated as it has been
replaced with a contractor
company engagement initiative(1)

Target included in the Top Management remuneration plan. This index is calculated as a ratio of the number of injuries (with more than 3 days of absence)
to hours worked (in millions). The result for 2023 is 0.50. Indicator subjected to comprehensive review (reasonable assurance).
(2) The index is calculated by assigning a weight to the Frequency Rates based on the severity of the injury that they represent (number of injuries with absencefrom work > 3 days per million hours worked), differentiating between fatal, life changing, high potential and others.
(3) Target is planned with short-term time horizon to 2024, as it is calculated as the average of the Weighted Frequency Rates of the previous 3 years (2021 to 2023).
(4) The index is calculated as a ratio of the number of injuries (with at least one day of absence) to hours worked (in millions).

Goals

New

242

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

ACTIVITIESGlobal health and safety communication
initiative

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

2023
RESULTS2024-2026
TARGETS

Completion of the initiative in
2023

Target outdated as it has beenachieved. Local health andsafety communication initiatives
will be implemented

5

Appendix

MAIN
SDGs

SECURITY
Physical protection of people abroad(5)1 training course included in
the eDucation catalog

Expansion of catalog content
with at least 2 training courses
for leavers

Asset protection

Risk Assessment performed in
100% of the countries in which
the Group operates

Target outdated as it has beenachieved(5) This refers to services to mitigate the risk of assault and kidnapping for colleagues working in countries with very high levels of crime.

﻿243

HEALTH AND SAFETY
OF PEOPLE
3-3

403-1

403-2

403-3

EU18

DMA EU (former EU21)

403-4

403-5

403-6

403-7

403-9

416-1

DMA EU (former EU16)

1.88

0.61

TRI FR - TOTAL RECORDABLEINJURY FREQUENCY RATECOMBINED ENEL AND
CONTRACTOR COMPANIESLTI FR - LOST TIME INJURYFREQUENCY RATECOMBINED ENEL AND
CONTRACTOR COMPANIES

2.25 in 2022

-16,4%

0.50 in 2022

+22,0%

101

1,452 thousand hours

EXTRA CHECKING ON SITE
(ECoS) SAFETY

TRAINING PROVIDEDTO ENEL PEOPLE

121(1) in 2022

(1)

-17,0%The 2022 ECoS figures include a more specific determination, followinginternal reclassifications.

244 Sustainability Report 2023

1,244 thousand hours in 2022

+ 16,7%

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

For Enel, the health, safety and psychological and physicalwell-being of individuals are the most precious asset to beprotected at all moments of life, be it at work, at home or
during leisure time. Enel is therefore committed to creating
increasingly healthy and safe work spaces and processes,
both for employees and for anyone who works with theCompany, by supporting dedicated training courses.
To make this commitment clear and evident to all Group
employees, as well as to external stakeholders, Enel has
developed and disseminated a Health and Safety Policy(2),which is shared with the Board of Directors and signed by
the Chief Executive Officer, setting out the guiding principles, strategic objectives, approach, guidelines and priorities for the ongoing improvement of health and safety
standards. It also outlines the areas of action where Enelhas committed to achieving its targets: people come first(meaning both internal workers and contractors working
with the Group), followed by processes and innovative technologies to support injury prevention.

4

Performance 2023

5

Appendix

In line with the values set out and adopted with the above
policy, the Stop Work Policy was also published, again
signed by the Chief Executive Officer, which aims to empower Enel employees and contractors in the managementof potential health, safety and environmental risk situations.
In fact, all workers have the opportunity to stop any activity
deemed risky for health, safety and environmental protection, based on a “no blame” approach – a principle where
no blame or responsibility is placed on an employee or contractor who reports a risky situation. Indeed, from a safety
standpoint, reports of incorrect behavior or a risky situation
are greatly valued to be able to take corrective action andprevent such behavior from recurring over time.
The “Health and Safety Policy” is available
on Enel’s website at the following link: https://www.enel.com/
content/dam/enel-com/documenti/investitori/sostenibilita/
enel-group-health-and-safety-policy.pdf.

Workers’ Health and Safety Management Systems
In line with the Health and Safety Policy, Enel promotes,
adopts and keeps constantly up-to-date its Workers’
Health and Safety Management Systems throughout the

ACTIVITY

Group, in accordance with the international standard ISO
45001, ensuring maximum coverage:

STATEMENT 2023

Employees% COVERAGE WITH CERTIFIEDMANAGEMENT SYSTEM

(1)

94%

Non employees(1)96%“Non-employees” in a company’s workforce include both individual contractors who provide labor to the company (“self-employed”) and persons provided
by companies that mainly carry out “salaried activities” (NACE Code n78, Annex 2 CSRD 2013/34/EU).

These systems are based on identifying hazards, qualitativeand quantitative risk assessments, planning and implementing preventive and protective measures (and checking theireffectiveness), and checking the training of work teams. By
way of recurring audit cycles conducted throughout theyear by certified internal staff (Part I audits) and by accredited external bodies (Part III audits), the Management Systems
ensure regulatory compliance, effectiveness of processes
and respective remedial actions, and, lastly, the dissemination of a risk-based approach and robust organizational andindividual culture on the broader issues, with a view to on-

going improvement in occupational health and safety. The
Systems’ homogeneous approach (adopted in the various
Group companies) is ensured through Enel SpA’s Management System, which provides guidance and coordination to
the Group by promoting the dissemination and sharing ofbest practices and external comparisons with top international players in the area of health and safety. The BusinessLines and countries have specific guidelines as part of theprocedures of their own management systems according
to their specific regulatory and business context, and verify
the proper implementation of said guidelines.

(2) Note that this commitment is also enshrined in the Human Rights Policy.

Health and safety of people

245

ENEL’S COMMITMENT IS:
ZERO INJURIES EVERY DAY,ALL DAYS
Combined values, Enel people and contractor companies

TOTAL RECORDABLE INJURIES(TRI)(1)TOTAL RECORDABLE INJURY FREQUENCY RATE(TRI FR)(2)

1,212

2.86

962
726

2021

2022

2.25
-24.5%
vs 2022

2021

2023

NUMBER OF FATALITIES
(FAT)
11
6

2022

2023

NUMBER OF MAJOR ACCIDENTS(FAT + LCA + HIPO)(3)
41

39

2022

2023

39

0.029
83.3%
vs 2022

0.021

2021

0.014

2022

2023

+ 107%
vs 20222023

MAJOR ACCIDENT FREQUENCY RATE (FAT+ LCA +HIPO FR)
0.125
0.091

2021

-16.4%
vs 2022FATALITY FREQUENCY RATE(FAT FR)

9

2021

2022

1.88

2021

2022

0.101

10.9%
vs 20222023

Total Recordable Injuries (TRI): these include all the injury events that cause injuries and include the injuries that caused days of absence from work LTI andFirst Aid, i.e., injuries that did not require days of absence from work.
(2) The Total Recordable Injury Frequency Rate (TRI FR), as for all Frequency Rates for the various types of events, is calculated by proportioning the numberof events with hours worked expressed in millions.
(3) The number of major accidents (FAT+LCA+HIPO), understood as the sum of fatal accidents (FAT - Fatalities, 11 in 2023), accidents that have caused healthconsequences that have changed a person’s life forever (LCA - Life Changing Accidents, 1 in 2023) and accidents that, due to dynamics, have the potential
to cause a life-changing or fatal event (HIPO - High Potential Accidents, 27 in 2023).
(1)

246 Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix2023 AWARENESS CAMPAIGNSTARGETED AT ALL PEOPLE
The “Safety is achieved together” campaign is aimed
at employees, contractor companies and partners toreflect on the meaning of “safety”, no longer as a setof rules and methods, but as a way of acting, thinking,behaving and working. The goal is to bring about achange in the perception of safety, to incentivize staff(whether in the field, in the office or smart working),
to adopt appropriate behaviors, and to encourage
individuals to participate in the creation of a safe
working environment. The campaign consisted ofthree phases: the first was aimed at engagement bysending out audiovisual materials (teaser, interview
with the Holding’s HSEQ manager, emotional video);
the second was aimed at staff involvement by having
the entire workforce help build a “safety tower”,
placing a brick with a word that best expressed themeaning of workplace safety for each person; andthe final phase focused on the reality of individualBusiness Lines, with information dedicated to thespecific risks faced by their activities. The “Mai più”
(Never Again) safety campaign was also carried out– a communication initiative with a strong emotional
impact, which aimed to make people reflect on the
fatalities that occurred in 2023 and to raise awarenessamong all workers on safety procedures (PPE use,
Stop Work Policy, work practices, correct risk
identification, etc.).

“Own workforce” health and safety(3)Performance analysis
The year 2023 saw significant organizational changes,
driven by the divestment plans of some Group countries
and by the return of work practices that require increased
on-site presence. This transition led to a heightened(though not severe) risk of injury. These changes therefore do not allow for a meaningful comparison with previous safety KPIs. In particular, the change in scope hada negative impact on the injury frequency rate, as there
was both a decrease in the number of hours worked (-10%compared to 2022(4)), and a slight increase in the numberof accidents with absence from work due to the climateof uncertainty and concern in outbound countries. Evenin these contexts however, Enel has paid extremely close
attention to the health and safety of workers, applying all
deterrence and prevention actions, such as controls, inspections and consequence management, which havehelped contain the trends.
Compared to 2022, the number of events with injuries(including first aid) fell by 24.5% (726 in 2023 compared to
962 in 2022), mainly due to the decrease in injury events

that did not require days off work. The decrease is mainly
due to contractors (-32%), with a slight increase in events
involving Enel people (+15%). The Total Recordable Injury Frequency Rate (TRI FR) follows the same trend, down
16.4% (1.88 in 2023 compared to 2.25 in 2022), witharound 2 injury events per million hours worked overall. On
the other hand, the Lost Time Injury Frequency Rate (LTI
FR) was up 22% from last year (0.61 in 2023 compared to
0.50 in 2022) for both Enel people and contractors.
Note that despite the increase in this rate, the total of thehighest impact injuries (both actual and potential) – i.e.,severe injuries or fatalities, Life Changing (permanently
impacting the life of the injured person) and High Potential (HiPo) accidents (which differ only in the impact on theworker, but not in the dynamics of the event) – remained
unchanged compared to 2022 (39 events) and were morethan 25% lower than the average of the previous three
years, and around 45% lower than the pre-pandemic period.
The most severe injuries have different breakdowns(3) “Own workforce” is defined as all Employees who have an employment relationship with the company and Non-employees who include both individual
contractors who provide labor to the Company (“self-employed”) and persons provided by contractor companies that mainly carry out “salaried activities”(NACE Code n78, Annex 2 CSRD 2013/34/EU).
(4) In particular, due to Goiás in Brazil being removed from the scope at the end of 2022.

Health and safety of people247

among the various types: fatalities increased (11 in 2023
vs. 6 in 2022), while Life Changing (1 in 2023 and 2 in 2023)
and High Potential accidents (27 in 2023 and 31 in 2022)
decreased.
Of the 11 fatalities in 2023, as a ratio of hours worked (and
activities performed), are 0.029 per million hours worked;
9 are associated with electrical risk and 2 with mechanicalrisk. Three fatalities involved Enel people (2 Enel Grids employees in Romania and 1 Enel Grids employee in Argentina) and 8 contractor workers (3 in Brazil, 2 in Italy and 1 inSpain working for Enel Grids; 1 in Brazil working for Enel
Green Power Brazil; 1 in Brazil working for Enel Servizi).
Moreover, the increase in the Lost Time Injury Frequency
Rate (LTI FR) compared to last year is also largely due tothe change in work patterns after the end of the COVID-19
pandemic, resulting in an increase in injuries with low potential (i.e., less severe events with only minimal impacts on
worker safety). In this regard, despite the increase recorded in 2023, the figure is still lower than in 2019 (-11%), thelast comparable year for work modes with higher officeattendance(5).
At the end of 2023, work was done on the changes to bemade to Policy 106, which provides Group-level guidelines
for reporting, analyzing and classifying accident events inorder to strengthen the near miss and safety observation(6)reporting process, increase the focus on HiPo events, andbetter trace the root causes of each event to ensure more
effective action plans.

Process of inspections and audits
The inspections process for verifying behavior and compliance with procedures and field work methods has been
re-engineered to make it more effective, to ensure greater homogeneity and better detection of at-risk situations(nonconformities), and to create additional opportunities
for training, coaching and dissemination of the safety
culture. Enel follows a data-driven approach, based on IT
tools and analytical dashboards, which make it possible toappraise the performance of the organizational units andcontractor companies, and to identify areas at greater riskof fatalities and Life Changing accidents and the subsequent management methods. More than 529 thousand
field inspections were conducted in 2023 (aimed at bothEnel people and contractor companies’ staff), held evenly
over the months of the year, to ensure oversight and control of all activities carried out in the field.
Another control tool used is the Extra Checking on Site
(ECoS) assessment, which evaluates the highest risk areas,
also taking into account contractors, and the adequacy ofthe organization and processes in a specific operational
area of the Group. These checks are carried out by experienced Health Safety Environment and Quality staff who areexternal to the business units being checked, supported
by business-specific technical profiles. Planning for 2023
included the execution of 101 Safety Extra Checking on
Site at Group level, all of which have been completed.
As far as contracting companies are concerned, safety
is integrated in tender processes and the performanceof companies is monitored both in the preventive phase,through the qualification system, and in the contract execution phase, through numerous control processes andtools such as: the Health Safety and Environment Terms(contractual conditions on occupational safety and environmental issues), Supplier Performance Management,
Contractor Assessments (CA) and Evaluation Groups. In
particular, the contractor companies’ qualification system
involves a specific assessment of H&S issues according to
the level of H&S risk of the activities associated with thevarious Commodity Groups; in 2023, around 35 thousandcompanies were qualified, for a total of over 36 thousand
active contracts. With regard to H&S audits of contractors
in 2023, CAs continued to be carried out at their premises
and worksites, or even remotely if field visits were not possible. A total of around 1,215 CAs were carried out acrossall of Enel’s Business Lines and Countries and Regions.
Moreover, in 2023, the Company held 73 Evaluation
Groups (EGs), 19 of which are reactive (since they werecarried out following an injury), and 54 were proactive(held based on the monitoring of contractor companies’
safety performance). These took the form of periodic
cross-functional meetings, across all Business Lines andCountries and Regions, which made it possible to assess
the safety performance of contractor companies and establish targeted actions and customized support plans forcompanies in order to reach the desired safety standards
and mitigate possible areas of risk in advance.

(5) For more information on safety indicators relating to injuries, please refer to the Appendix “Performance indicators,” in the “Health and safety of people”
section of this document.
(6) An unsafe practice/situation engaged in by Enel people or contractor staff, or an unsafe/hazardous situation to which Enel people or contractor staff may
be exposed, which did not result in an accident, but could cause one.

248

Sustainability Report 2023

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Development of health and safety culture: training, information awareness raising
EU18
The goal of protecting the safety and mental and physicalintegrity of all people in the Enel Group is the main driverof training, information and awareness raising. To promotetechnical skills and a culture of safety, support change
processes and respond in a timely manner to the needs
that arise from the business, the Enel Group has adopted
a structured training management process, which aims totransform knowledge into skills and, in turn, practices. A
total of 1,452 thousand hours of training were provided
to Enel people on health and safety issues in 2023. Manyof these hours were delivered at the local level, always incompliance with the legislation of their country, basedon existing hazards and associated risks, and taking into
account the task performed. Approximately 64 thousand
hours were developed by Holding HSEQ’s SHE Factory unit,
which has the specific goal of developing, integrating andharmonizing training projects throughout the Group, dedicated to promoting a culture of safety and environment.
Safety projects in 2023 covered a variety of content andtargets, and were guided by training needs resulting fromdata analysis, new Policies or Procedures, and improvement actions arising from the analysis of injuries that occurred during the year. Some of the projects developed
during the year include:• “Cross risk prevention” course. The analysis of historical data showed a Group-level increase in minor injuries
with less complex dynamics and mild consequences,which led to the development of the “Cross risk prevention” course. The course aims to raise workers’ awareness of generic risks in the work environment, such as
slips, collisions, driving, etc., and was taken by around
90% of the Enel Group population.
• Safety Leadership course. Accident events that occurred in the distribution area highlighted the need tomaintain a high level of awareness and attention fromline managers on safety issues, to ensure the rightlevel of involvement of all employees in compliancewith safety procedures during field activities. With thisin mind, the “Safety Leadership Path” training project was rolled out, involving some 2,500 Enel Grids &Innovability Italia managers, for a total of more than
40,000 hours. This aim of the project was to share all
aspects of safety, as a set of procedures, behaviors,
skills and relationships, so that they become part ofthe daily work practices of managers, who are a key
link in the dissemination of good practices in the field,
leading by example.
• “Onfield Observer” course. To ensure a high level oftraining for inspectors involved in field inspections todetect non-conformities that put workers at risk of inju-

ry, the “Onfield Observer” training path was developed.
This stems from the belief that detecting non-conformities and, in turn, establishing corrective and improvement actions, are a fundamental prevention tool, notonly for gathering feedback from the field on practices, levels of knowledge and how rules are applied, butalso to spread the culture of safety. The training waslaunched in the Enel Grids & Innovability Business Lineand involved over 200 trainers in the various countries
who will go on to train new inspectors.
Lastly, some examples of projects developed with the involvement of the Business Lines to cover other areas oftraining, include:• “Gridverse” project - Grids & Innovability. A pilot project which uses the potential of the metaverse and“wearables” to simulate real interventions that can also
be carried out in teams, on virtual plants, and to simulate unforeseen events as well as the human impact
of potential errors. The goal is to ensure effective, allround experiential training.
• “Major hazards video tutorials” project – Enel GreenPower. A project that involved preparing and disseminating clear and simple videos which, together withwork procedures, place the focus on how to perform
activities safely.
• “Sliding Doors” video – Enel X, Global Retail and Grids& Innovability. A project that involved creating anddisseminating videos in 3D animation, with the aimof sharing the “lessons learned” from accidents andraising awareness of safety aspects by comparing the
scenario of the accident event with what would haveoccurred if all operational instructions and safety prevention measures had been followed.
Lastly, in 2023, a working group was launched also involving
workers’ representatives on safety, which uses agile working
modes to redesign their dedicated training course and integrate the technical aspects with the soft skills needed to better perform their role, to further engage professional figures,and to take on a greater and more effective role in the ongoing improvement process. In particular, work has been doneon introducing experiential methods and new technologies(video, gaming, case studies, etc.) and Enel testimonials.
The process of informing staff is systematically underway
through various Company channels, such as intranet news,
informational emails, Enel Radio, newsletters and magazines. Periodic surveys are carried out to gather feedback
from colleagues on improving processes or safety initiatives launched by the Company.

Health and safety of people249

Lastly, in many Countries, bilateral committees are set up
with representatives of labor organizations, which aim toestablish initiatives together with Enel representatives toimprove health and safety aspects in the workplace. In
Italy and Spain, for example, the Bilateral Committee on
Health and Safety usually meets once a month, and is an
opportunity to gather early input on risk assessment andon identifying and implementing prevention initiatives in
the Company.
Special attention was also paid to contractor companies
with the “Partnership for safety, health and the environment” project which, in line with previous years, aims toraise contractors’ awareness of safety values by sharing
best practices. Together with Global Procurement, a portal
page was built in June 2022 dedicated to safety and environmental issues, which is open to all contractor companies. This provides information/training materials, key
policies and popular illustrative videos so that contractors
can access all materials used by Enel for training and communication, with the aim of supporting them to improvetheir health and safety performance. In 2023, the portal
was accessed around 2,300 times by contractor companies operating across the Group.

Infrastructure safety and technological innovation
Enel sees technological innovation as a valid tool for improving a large number of health and safety processes. Inline with previous years, some innovative safety and healthprojects continued to be developed and applied also in
2023. In fact, adopting innovative technologies is an important operational lever for mitigating and managing
safety risk, and is fundamental for further reducing work
injuries. The criteria Enel uses when defining its project
development priorities follow a “risk management” ap-proach, starting with an analysis of the context in which it
is intended to intervene, based also on accident data andthe types/frequencies of accidents that have occurred,with the core aim of eliminating the probability of an event
occurring (e.g., making all structural changes to physically prevent a worker from being injured – “intrinsic safety”)
or reducing that probability through various degrees of
implementation depending on actual feasibility (inverted
pyramid: injury risk management hierarchy).

PRIORITIZATION PYRAMID ON DEVELOPMENTS FOR INJURY RISK MANAGEMENTPRIORITY ON DEVELOPMENT
Moreeffective

ELIMINATIONREPLACEMENTTECHNICALCONTROLSPROCEDURALCONTROLS

Less
effective

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Sustainability Report 2023

PERSONALPROTECTION
DEVICES (PPDS)MAIN AUTOMATION AND
DIGITAL INITIATIVES••••

Splicing robot for cable repairs
Robots operating at height on live lines
Robotic plant cutting
Intrinsic Safety (replacement of tools/
equipment/assets with a higher level of
intrinsic safety)• Drones: automation of inspections inenergized environments• Artificial intelligence for safety purposes• Laser beacon for night construction
sites• Metaverse and wearables forexperiential training• Advanced analysis (Video understandingfor verification of the application ofsafety procedures, AI@5RO)• On-the-job assistance (E-Electra)• Smart helmet• Personal voltage detector• Innovative clothing (increased comfort +flame/arc resistance)

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

USE OF REMOTELYGUIDED DEVICES“Remote Trimming” project
BRAZIL“SKYBOT” project
USA AND ITALY

Most of the innovative initiatives involved Enel Grids,
which has the greatest risk of injury due to the typeof activities performed. One example is the “Remote
Trimming” project, where Grids uses a robot whichis remotely guided via a joystick to prune vegetationnear power lines. The robot holds branches during
pruning and safely lays them on the ground, allowing
operators to stay out of the most dangerous areas
and avoid the risk of electrical contact, falling fromheight, or falling objects. The system was tested
and went live in 2023 in Brazil, where the activity is
conducted very frequently and has caused several
major injury events in the past.
Innovative systems have also been developed for

performing preliminary technical checks andoperational activities without human intervention.
One example is the new “SKYBOT” system,
developed in 2023, which involves using a robot drone
to perform inspections and work at height on themedium-voltage overhead grid. The drone is remotely
controlled by an operator through a 3D viewer andallows inspections and complex work to be performed
safely, away from live parts, thereby eliminating therisk of falling from height and electrocution. In 2024,
there are plans to test prototypes in some areas of
Grids Italia, followed by a scale-up phase also in otherbusiness areas in the two-year period 2025-2026,
based on the feedback gathered in the testing phase.

USE OF ARTIFICIALINTELLIGENCE“AI@5RO ON EDGE” project
ITALY

Also in Enel Grids, with regard to procedural
controls, the “AI@5RO ON EDGE” project wasdeveloped in 2023 to digitize, via an app, the 5Golden Rules procedure, i.e., a set of basic rules for
performing work with exposure to electrical risk incomplete safety. Thanks to the app, the operator
takes photos downstream of the execution ofeach rule. The photos are then analyzed to detect

incorrect practices and implement preventive
actions. The system uses the latest Computer
Vision and Deep Learning algorithms, with the goalof automating the examination of all images andalerting operators to risk in less than a second.
Further initiatives are being considered to robotizetasks in all Business Lines, with the goal of avoiding
human exposure to high-risk activities.

Health and safety of people

251Employee health
Health is a fundamental value for the care and development of people in the Company, not only at work but also
in their daily life. For this reason, the Enel Group has adopted a structured health management system based on
preventive and protection measures, and is committed todeveloping a corporate culture geared toward psychological-physical health, organizational well-being and a goodwork-life balance.
An approach described in Policy 179 “Health and Wellbeing”, which lays out two main drivers of action:• health surveillance, which includes a series of preventive and periodic medical examinations and checks,
based on specific health protocols established by therelevant doctor according to the assessment of risks to

ITALY

SPAIN

which each worker is exposed, in line with the regulations in force in each Country;• prevention and well-being initiatives, which include
periodic screening campaigns and checks, workshops
and awareness-raising and information initiatives, inCountry-specific health and well-being action plans.
This includes primary prevention initiatives to promotehealthy lifestyles and prevent the onset of disease; secondary prevention initiatives to reduce the progressionof disease through early diagnosis and early intervention; and tertiary prevention initiatives to limit the effects of disease or prevent complications.
The table below shows the main initiatives taken by themain countries.

USA
GREECE CANADA COLOMBIA CHILEPERU

BRAZILMEXICO ARGENTINA

Prevention: check-ups and specialist
medical consultations
Information campaigns on the risks
associated with the activities andon the prevention measures to betaken (ergonomics, exposure to UV
radiation, etc.)
Information campaigns and advice
on cancer prevention, chronic
diseases, sexually transmitted
diseases, etc.
Information campaigns on mental
health and stress management
Vaccinations campaigns
Personal well-being challenge –Active break – Nutrition

Policy 179 requires the various countries to draw up anannual plan of initiatives, based on a “data driven” approach, by monitoring a set of dedicated indicators(Health KPIs) described in the document. The Policy alsoestablishes a ban on smoking in all Enel workplaces andoutside for a radius of 7.5 m from exits, windows and air
sampling points, as required by the Well certification. In
fact, in addition to its legislative compliance activities
for its own workplaces, Enel has initiated a certification
process for its key locations according to the international Well standard, which focuses on the well-being ofoccupants, and takes into account the use of renewable
resources and environmental sustainability issues. Thereare currently 6 sites already certified (“platinum” level), 4
in the submission stage (including 2 that are part of thesame building complex), and 7 more in the renovation/
documentation collection stage with the aim of gaining
Well certification.

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Sustainability Report 2023

One key health issue is the topic of stress and well-being. In particular, surveys on work-related stress are being conducted in many countries. The goal of these initiatives is to have a measure of organizational well-beingby monitoring feedback from workers, identifying areasof the organization that need attention, and launchingactions to improve the work climate, work organization
and autonomous management of activities where necessary, and to promote effective prevention strategies
for work-related stress.
The key initiatives on work-related stress risk assessment
in 2023 were conducted in Italy and Spain. In Italy in particular, the work-related stress survey was conducted basedon a new methodology developed under the protocol incollaboration with INAIL, signed in 2022. This methodology
involved analyzing new dimensions such as remote work,
the use of new digital technologies, and a focus on newly
hired staff. The activity consisted of two phases:

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis• preliminary survey (January-April 2023): collection andanalysis of objective data (sentinel events), detection
and analysis of content and context factors, throughindicators/focus groups/interviews;• in-depth survey by administering the questionnaire to
all Italy Country employees (September-October 2023).
Moreover, in 2023 Enel planned several initiatives to protect the health and well-being of its workers, such as
agreements with health facilities and nutritionist doctors(Wellbeing Program) and psychologists, as well as sports
facilities both in Italy and abroad.
Lastly, as part of the initiatives for the prevention of mus-4

Performance 2023

5

Appendix

culoskeletal disorders and for the adoption of preventive
measures in the field of ergonomics, an online training
course on minor risks was launched in 2023 in all Countries, which aimed to encourage correct day-to-day behaviors in the workplace, both in the office and in operating sites or smart working locations. The aim of the course
is to prevent injuries and health disorders by tackling badhabits in day-to-day practices, which are often done automatically, underestimating the risks and potential consequences. In addition to ergonomics, the course addresses
the risks associated with moving around the workplaceand driving, with a specific focus on selective attention.

Safety towards contractor companies and in contract processes
Companies’ performance is constantly monitored bothin the preventive phase and during contract execution
through numerous processes and tools. The contractor
companiesʹ qualification system provides for a specificassessment of H&S issues according to the H&S risk of theactivities associated with the various Merchandise Groups(GMs): for low-risk GMs, the qualification process involves
only the completion of an H&S questionnaire (self-assessment) by the company; for medium risk, a field assessment
is also carried out by Enel (Contractor Assessment); andfor high risk, there is an additional requirement to possess
ISO 45001 certification.
In view of an increasingly objective assessment of the level of H&S risk associated with GMs, a new methodology
was defined in 2023, adopting a “risk-based” approach,which involves assessing the H&S risk level of a GM as a
product of the probability of an injury occurring, multiplied by the severity of the potential injury, according to
the type of risks associated with the GM’s activities. Thismethod was formalized in Policy 2414 “Methodology forassessing the H&S and ENV risk level of the MerchandiseGroups”, published in December 2023. In 2023, a re-evaluation of the H&S risk level of GMs was initiated according
to the new methodology. Specifically, 155 GMs were evaluated (14 high risk, 14 medium risk, and 127 low risk), for
79% of which the current risk level was confirmed, whilefor 21% the risk level was re-evaluated (4 GMs went from
low to high risk, 26 GMs from low to medium risk, and 2
GMs from high to low risk). The analysis so far has mainly
involved low-risk GMs for services or supplies with installation, and will be extended in 2024 to the remaining GMs
for medium and high H&S risk.
During the tender phase, a specific document is prepared(HSE Terms), and attached to all contracts that must be
signed by contractors when the work is awarded. The document, which is the same throughout the entire Group,
defines the obligations in relation to health, safety andenvironmental aspects that the contractors must respect,placing the same obligation on their subcontractors. This
tool clarifies Enel’s requirements and conveys their importance to contractors; it also defines a list of safety and environmental violations that can involve specific penalties,
up to the termination of the contract and/or suspensionof qualification on the Enel contractor companies’ portal.
With a view to using indicators that can predictively measure the effectiveness of contractors’ safety processes andguide prevention strategies based on a “data-driven” approach, the Enel Group has adopted a set of KPIs, the mostimportant of which is the Fatality Risk Index (FRI). This predictive parameter is based on a modular logic: through theweighted combination of the main safety indicators (such as
injuries, hours worked, inspections and non-compliance), it
establishes the level of accident risk of the specific contractor operating in a specific Country or at Group level. The FRI
therefore aims to intercept possible critical situations that
could cause an injury. All contractors’ safety KPIs, including
the FRI, are available to all units involved (e.g., O&M, E&C,
HSEQ, Procurement) so that each one, for its own remit, canassess the safety performance of the contractor company
and, in turn, act to mitigate or prevent all risks by enacting
consequence management actions.
There are two types of consequence management, which
are applied to high- and medium-risk GMs for H&S: proactive and reactive.
Proactive consequence management introduces a preventive and selective approach of monitoring contractors,
with the aim of anticipating and correcting possible future
critical issues. It involves ongoing monitoring of contractors’ H&S performance to guide and apply a customized
set of corrective and/or improvement measures.
The aim of reactive consequence management, on
the other hand, is to evaluate the measures to be taken
against the contractor involved in critical health and safety events (HiPo accidents-LCA-Fatalities). In this regard, across-functional committee (Evaluation Group) is formed,
consisting of contact persons from the HSEQ and Procurement Functions and the Business Line concerned to

Health and safety of people253evaluate all applicable measures. In the Evaluation Group,
the dynamics of the accident, the possible degree of responsibility of the contractor company, the level of safety
culture within the contractor company’s organization, as
well as the performance of safety KPIs over time, are analyzed to assess corrective/improvement actions for thecontractor company.
Both consequence management processes end withphased actions depending on the severity of the situa-tion. These range from increased inspections by Enel orthe contractor company itself, safety support from Enel,
additional Contract Assessments, specific action plans
for the contractor company which Enel monitors and towhich more significant actions may apply, periodic meetings with the contractors’ top management to discuss the
progress of safety KPIs, joint Enel-Contractor safety walks,
as well as a reduction in the scope or volume of activities,
or suspension of the contractor.

Health and safety of communities and third parties
416-1
Establishing solid and long-lasting relations with local
communities in the countries in which Enel operates represents a fundamental pillar of the Group’s strategy. This,
while also paying constant attention to social and environmental factors, makes it possible for Enel to adopt a
new fair development model that does not leave anyone
behind, and create shared value over the long term for all
stakeholders.
Enel adopts the best safety and efficiency standards for all
installations and plants in the local area, not only to comply
with legal requirements and good engineering standards,
but also to avert the risk of injury to third parties. Indeed,
the Enel Group pays close attention to the prevention of
injuries occurring to the population, for example, due toaccidental contact with power grids, at construction sites
close to lines or sports activities, such as fishing, recreational activities, etc. For this reason, the Group has adopted a process for monitoring third-party accident
events that occur in the various countries where it operates, classifying them by type, frequency, and businessareas impacted, on a par with the injuries of its own employees and contractors. Moreover, awareness campaigns
are conducted periodically, targeted at both the generalpublic and specific categories, such as construction companies and sports associations. In many countries, such as

254

Sustainability Report 2023

Brazil and Italy, school meetings are organized, as well as
training/awareness-raising at plants, meetings with local
communities and trade associations (artisans, construction companies, electricians, fishing associations, etc.),
distribution of leaflets, awareness-raising in DIY stores,
etc. The goal of these initiatives is to prevent as much as
possible third-party injury events tied to Enel’s installations
within communities. For example, injuries due to kites accidentally coming into contact with live lines (which in thepast has significantly affected Brazilian children) have decreased by around 70% in the last 4 years thanks to these
initiatives (40% decrease in 2023 compared to 2022).
Lastly, again with the aim of ensuring the health and safetyof the community and reducing the impact on the external environment due to typical Company activities, Enel
carries out periodic monitoring campaigns, including, forexample, measuring the level of electromagnetic fields ofthe distribution plants, and detecting the level of noise, vibrations and dust generated by the electrical machineryof the power plants and distribution/transformer substations. The following environmentally significant factors arealso monitored: atmospheric emissions and air quality,
effluent discharge into surface waters, water quality, production, reuse and disposal of waste, soil quality, biodiversity impacts.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Customer health and safety
The Enel Group pays the utmost attention and care inprotecting the safety of all its customers in the various
countries in which it operates. All Enel products are designed, manufactured and distributed according to thehighest standards and in compliance with the regulations and/or product specifications in force in the coun-tries where they are marketed, in order to guarantee thesafety and health of consumers, as well as high-quality
performance. Enel is therefore committed to meeting therequirements for maintaining international certifications
for the products it sells.

Emergencies management
The Group has established a common crisis and criticalevents management system across the various countries
where it operates, as described in Policy 24 “Critical EventManagement”. This system involves evaluation of the impact caused by critical events by means of a standard
reference scale with three levels. High-impact crises aremanaged centrally, while medium- or low-impact crisis
situations are managed within the specific organization in
the individual countries.
High-impact crises (“Group Red Code”) are also addressedby creating a central crisis committee in the Security Control Room at the Viale Regina Margherita headquarters inRome, supplying support 24/7 for communication and coordination of information flows. Moreover, the crisis committee sets out strategies and actions to deal with criticalevents and coordinates all actions to restrict damage to
people, and to the Enel Group’s property, profitability andreputation.

While the critical event involves risks to the health andsafety of people, Policy 203 “Guideline for Emergency
Management” sets out, at global level, the immediate
emergency measures to be launched, in compliancewith locally adopted safety management systems.
In 2023, updates were initiated to the emergency management procedures in civilian locations in order tomake this process even more responsive to the new
hybrid work model, which involves the presence of onsite staff alternating with smart working. Enel has also
completed the development of new digital tools both tosupport managers in monitoring attendance and managing emergency workers at the various locations, andto give workers constant access to information on theemergency management staff present at their places ofwork.

Nuclear policy
In the context of its operations in the field of nuclear technologies, Enel has made a public commitment, in the roleof shareholder, to guarantee that a clear nuclear safety
policy is adopted in its atomic energy plants and that theplants are managed in accordance with criteria capableof assuring the absolute priority of safety and protectionof workers, the community and the environment. Further
details are available on the Enel website (https://www.enel.
com/investors/sustainability/strategy-sustainable-progress/occupational-health-and-safety/enel-nuclear).

Health and safety of people

255Industrial relations on health and safety topics
In order to consolidate the culture of safety and promote
the adoption of behaviors that are consistent with Company policies, Enel supports social dialogue and participation of workers’ representatives. Joint committees havebeen set up in the main countries where Enel is present,
dedicated to monitoring the issues and projects concern-

256

ing workers’ health and safety at both national level andby Business Line. The focus on health and safety is also
reiterated in the Global Framework Agreement (renewedin October 2023), as well as in the People’s Charter. The
following details concern the commissions that operate in
the main countries at national and/or local level.

COUNTRYJOINT COMMITTEES FOR HEALTH AND SAFETYITALY

In implementation of the matters provided for by the national trade union agreement on the “Italian model of Enel Italia
industrial relations”, there has been a Bilateral Commission on workplace safety and protection policies in force since 2012.
This commission plays a role in the analysis and promotion of projects, procedures and initiatives in the field of occupational
health and safety, as well as the main training courses in the field of safety culture. In 2023, the main areas of commitment were
the progressive relaxation of COVID case prevention and management measures, the work-related stress risk assessment
campaign, the new training course for RLSA, the “Changing the habits” project on quality of sleep and dreams for personaland organizational well-being, and the “Safety Leadership” project to promote a culture of safety among team leaders. A
bilateral Health and Safety body is also operating in the Network Area, which follows the guidelines dictated by the BilateralCommission, in the specific context of the Network (Health and Safety Bilateral Bodies, OBSS). It mainly deals with the analysisof accident trends, to propose innovative safety projects, to analyze any training plans, to modify operating instructions. Both
the Committee as well as the Health and Safety Bilateral Bodies are particularly active, with periodic meetings on average
every month, in order to review in particular all the aspects correlated to the management of safety issues in order to identify
and accompany innovative projects targeted towards continuously improving the prevention of injuries, but above all to workon the safety culture also as specified in the Charter of the Person.

SPAIN

The Comisión de participación y control has been set up on the national level, while the local level is handled by Comités deseguridad y salud territoriales.

ARGENTINA

The plants have bilateral committees that carry out activities related to health and safety issues. The agreement does not
specify the frequency with which the meetings are held (generally every two months).

CHILE

The mixed health and safety committees are active and have the task of avoiding occupational injuries by implementing
measures for the prevention of risks for employers, promoting permanent work and programs on the safety of work places.

PERU

There are bilateral committees (workers and Company representatives) that approve occupational health and safety policies
according to law.

BRAZILThe Comissão interna de prevenção de acidentes has been established at all sites, which is comprised of Company
representatives and worker representatives; the committee focuses on the creation of injury prevention initiatives.

COLOMBIA

There are two joint health and safety committees (COPASSTS).

MEXICOThe Health and safety committee is active: as required by law, there is a Mixed Commission for Safety and Hygiene (MCSH)
for each plant, including also the corporate offices. This represents the obligations of the employer according to “NOM019STPS-2011” (constitution, integration, organization and operation of the safety and hygiene commissions), being a bipartisan
body comprised of an equal number of worker and employer representatives, whose purpose is to identify hazardous andunsafe agents and conditions, investigate the causes of occupational injuries and illnesses; suggest measures for preventing
them, and to control observance. The personnel part of the Mixed Commission for Safety and Hygiene (MCSH) perform asafety walk at each plant and site every three months.

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Security
In terms of security services for the protection of theCompany’s people and property, Enel ensures that overall management is entrusted to a dedicated Function atGroup level (Security). In the last quarter of 2023, it wasplaced directly under the CEO, with the mission of monitoring risks and threats, including IT, adopting and raising
the efficiency – both nationally and internationally – of all
measures to prevent, combat or mitigate any possible im-

Safe travel
As of 2016, Enel people traveling to destinations
considered at risk have been provided with specificinformation detailing the healthcare situation andsafety conditions of the countries in question.
Specifically, by means of the company travel
reservations system, the Security Guide, Security
Travel Guide and Health Guide are sent out before
departure, with any necessary updates added justbefore departure or during the trip. In relation
to specific risks associated with the destination,

pact on people and assets, including those deriving fromclimate change. From this point of view, of particular importance is the new element represented by the creation,
within the unit known as “International Security”, part ofthe "Climate Security" division, to make it possible to apply
an increasingly holistic vision of security based on purely
corporate protection models.

whenever necessary Enel prepares suitable protective
measures (expert guides, bodyguards, etc.). To
coordinate the entire process, a 24/7 supervisory
function supports staff during travel, monitors therelevant news reports and coordinates responses
in the presence of situations of objective danger or
emergency. The model is active in all Group Countries,
guaranteeing 100% coverage of international andintercontinental travel with the integrated Travel
Security system.

Health and safety of people

257

SOUND GOVERNANCE
SUSTAINABILITY PLAN PILLARSUSTAINABLE DEVELOPMENT GOALS (SDGs)

SOUND GOVERNANCE

Enel is constantly striving to strengthen its Governance system, which aligns with national and international best practices.
This system supports the Company’s activities, as well as its relations with all stakeholders involved.
The activities carried out in 2023 in line with the previous 2023-2025 Sustainability Plan, with the commitment to ensure
continuous improvement of the Governance system, are listed below.
TARGETS

2023 RESULTS

SDGs

BOARD OF DIRECTORS AND TOP MANAGEMENTDiversity Policy
Monitoring the implementation of theBoard of Directors’ Diversity Policy

Recommendations and best practices
Continual alignment with international
recommendations and best practices
for corporate governanceInduction plan

Alignment with international best practices on corporate governance, and with therecommendations of leading proxy advisors and institutions.
Full compliance with the Italian Corporate Governance Code.
Participation in the corporate governance roadshow, which provides an opportunity to
discuss requests from institutional investors and proxy advisors.

Structured induction plan for Directors
and Statutory Auditors during theirterm in office, including with regard tosustainability issues

Induction activities were carried out in 2023 to ensure that Directors and Statutory
Auditors have adequate knowledge of the Enel Group’s corporate governance, as wellas the sectors in which it operates, market trends and the regulatory framework ofreference. Further induction activities have also been planned for early 2024, including
in relation to sustainability issues.

Engagement

Enel SpA’s Engagement Policy has been properly implemented.

Monitoring the implementation andpossible updating of Enel SpA’s
Engagement Policy and supporting theInvestor Relations unit in engagement
activities with institutional investors
and proxy advisors on corporate
governance issues

The Corporate Affairs unit has regularly supported the Investor Relations unit inengagement activities with institutional investors on corporate governance issues.

Goals

New

258

The composition of the Board of Directors appointed by the Meeting of May 10, 2023
is entirely consistent with the objectives set out in the Diversity Policy for the various
types of diversity. In any case, it is worth noting that all the Directors elected at thisMeeting are in their first year in office at Enel and therefore there is no balanced
distribution of tenure within the current Board of Directors. However, following their
appointment, an intensive induction program on the Enel Group’s main businessareas and corporate governance was implemented to provide the incumbent
Directors with the necessary know-how to perform their duties as effectively as
possible.

The Corporate Affairs unit carried out engagement activities with proxy advisors on
corporate governance issues.

Progress

Redefined

Outdated

Sustainability Report 2023

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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Letter to stakeholders

2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

TARGETS

4

Performance 2023

2023 RESULTS

Board review

5

Appendix

SDGs

Board review activities began in November 2023 and ended in February 2024.

Board review carried out with thesupport of an independent consultant
Share Ownership Guidelines
Monitoring of the implementationof the Share Ownership Guidelines,
which apply to Chief Executive
Officer and executives with strategic
responsibilities, regarding the minimum
level of ownership of Enel shares theymust achieve within a given timeframefrom their appointment and must
maintain during their term in office

DOUBLE
MATERIALITY

Following an in-depth analysis of national and international best practices and at the
proposal of the Nomination and Compensation Committee, in March 2023 the Boardof Directors adopted the “Share Ownership Guidelines” which set out the minimum
level of ownership of Enel shares that the Chief Executive Officer and executives withstrategic responsibilities must achieve and maintain over time, thereby strengthening
the alignment of their interests with those of all shareholders over the long term. The“Share Ownership Guidelines” came into effect on May 10, 2023, after the approval of
the 2023 remuneration policy by the Enel Shareholders’ Meeting, and are now fully inplace.

SUSTAINABILITY
PLAN PILLAR

MATERIAL TOPICS:• Business conduct and ethics

SUSTAINABLE DEVELOPMENTGOALS (SDGs)

SOUND GOVERNANCE

ORGANIZATIONAL MODEL AND COMPLIANCE PROGRAM
Anti-corruption certification

100% retention of ISO 37001 certifications acquired by Group companies.

ISO 37001 anti-corruption certification
maintained for the main Italiancompanies, extended also to theGroup’s foreign companies
Compliance Program
Ongoing improvement of Compliance
Programs/Models for the prevention of
criminal risks

Enel’s Global Compliance Program is continuing to be adopted by Group companies,
particularly newly acquired or established companies. In 2023, a new policy was
published on the protection of whistleblowers, as well as a new organizational
procedure setting out the principles on the management of the stewardship model.
Ongoing updates to the criminal risk prevention models for Enel Group companies.

Training on ethical issues
Online training on ethical issues(e.g., Model 231, Anti-corruption
Management System, Enel Global
Compliance Program)International sanctions risk
prevention program
Ongoing improvement of the sanctions
risk prevention process

Online training on ethical issues was extended to all employees of the Group’s
Italian and foreign companies. A comprehensive review and update of training on
anti-corruption issues was conducted in 2023. Additional training on criminal risk
prevention models was also provided.

Ongoing monitoring of the regulatory environment and updates to the internationalsanctions risk prevention process to ensure full compliance with the relevant
regulations.

Sound Governance259

SOUND
GOVERNANCE
2-1

2-9

2-12

2-17

2-29

44%

7

207

PERCENTAGE OF WOMENON ENEL SPA’S BOARD
OF DIRECTORS
44% in 2022
0%

ENEL SPA’S BOARD OF DIRECTORSMEETINGS CONCERNINGSUSTAINABILITY
12 in 2022
-41.7%REPORTS CONCERNING THE
CODE OF ETHICS
172 in 2022
+20.3%

41

7

VIOLATIONS OF
THE CODE OF ETHICS
29 in 2022
+41.4%DATA BREACHES
7 in 2022
0%

Enel is a Company listed since 1999 on the Euronext Milan stock exchange and managed by Borsa Italiana SpA,
with one of the highest number of shareholders of any
Italian company. Notably, the shareholder structure at
December 31, 2023 was as follows: (i) 58.6% institutional investors; (ii) 17.8% retail investors; (iii) 23.6% Ministryof the Economy and Finance.

260 Sustainability Report 2023

Enel’s corporate structure includes the main international investment funds, insurance companies, pension funds
and ethical funds, thanks also to the adoption, by the Company and the Group, of the best international practices ontransparency and corporate governance. Moreover, at thedate of this Sustainability Report, the Enel Group includes
a further 11 companies issuing shares listed on the Brazilian, Chilean, Peruvian, Spanish, and US stock exchanges.

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Policy for managing the dialog withinstitutional investors and with allshareholders and bondholders
Enel considers it to be in its specific interest, as well
as a duty toward the market, to ensure a constantand open relationship that is based on the mutual
understanding of the roles with all shareholders
and bondholders, as well as with the institutional
investors and their representative associations inorder to increase the relative level of understanding
regarding the activities performed by the Company
and the Group. In this context, Enel maintains dialog
with counterparties based on principles of fairness
and transparency, in compliance with EU and national
regulations on market abuse, as well as in line withinternational best practices. This engagement activity
has led to the positive result, over recent years, of asignificant increase in participation of the institutional
investors in the Shareholders’ Meetings.
In order to regulate the methods for developing this
dialog, in March 2021 the Board of Directors adopted
a specific Policy, (i.e., “Engagement Policy”), acting
on a proposal of the Chairman made in agreementwith the Chief Executive Officer, which clarified to alarge extent the practices already followed by Eneland whose use takes into account the applicable bestpractices adopted by the institutional investors andreflected in the stewardship codes.
This Engagement Policy, which was appliedconsistently during 2023, also identifies the corporate
structures that, in line with the practices establishedby Enel from the moment their shares were listed on
the stock exchange, are responsible for the dialog
activities, and specifically with: (i) a specific Investor
Relations unit which is part of the Administration,
Finance and Control Function, which interacts on
a continuous basis with the institutional investors(as well as with the financial analysts and therating agencies); as well as (ii) a specific area in the
Corporate Affairs unit, which is in turn part of the

In 2023, Enel continued its commitment as patron of
the United Nations Global Compact (UNGC) initiative on
Transformational Governance (“TG”), aimed at exploringnew decision-making models to support sustainable investments.
As part of this initiative, the TG Corporate Toolkit has beendrawn up, which consists of:a. a Self Assessment Tool;

4

Performance 2023

5

Appendix

Legal, Corporate, Regulatory and Antitrust Affairs
Function, which interacts on a continuous basis withthe retail shareholders and bondholders, providingthem with all useful explanations regarding therespective issues of interest.
The information provided to Enel’s institutional
investors and all their shareholders and bondholders
by the above-indicated organizational structures– as well as by any other duly authorized Company
member – complies with the criteria of truthfulness,clarity, coherence, completeness and symmetryof information; the information is also supplied ina timely manner and in compliance with what isrequired by the regulation adopted by Enel regarding
the processing of corporate information.
In particular, the Investor Relations structures are, forexample, responsible for the following: (i) preparing
Enel’s equity story and organizing meetings between
the Company’s Top Management and the financial
community; (ii) managing relationships with ratings
agencies and with the fixed income investors; (iii)managing relationships with institutional investors andfinancial analysts; (iv) coordinating the managementof relationships with the institutional investors
who have an interest in the listed share capital
controlled by Enel; (v) preparing market analyses andreports concerning Enel shares, also monitoring theconsensus of the financial analysts; (vi) supporting
the External Relations Function, in coordination with
the Corporate Affairs unit, with the definition of Enel’s
price sensitive press releases, as well as developing
and updating the content dedicated to investors on
the Company website.
For more details, refer to the Report on Corporate
Governance and Ownership Structure for 2023. Also,
Enel’s website (www.enel.com, “Investors” section)
provides access to economic, financial, environmental,social and governance information and updated data
and documents of particular interest, providing a
multidisciplinary and integrated vision.

b. three Issue Briefs: (i) Transformational Governance &the Role of the Corporate Board and Executive Leadership; (ii) Transformational Governance & Responsible
Governmental Engagement; (iii) Investing in Transformational Governance;c. a Report: “Transformational Governance Think Lab: Insights from the engaging the legal function”.

Sound governance261

Corporate governance model
2-9

2-10

2-11

2-12

2-13

2-14

Enel’s corporate governance system complies with theprinciples contained in the Italian Corporate Governance
Code published on January 31, 2020(1) (the “Corporate
Governance code”), to which the Company adheres as a“large company”(2) with “non-concentrated ownership,”and is also inspired by the international best practices.
The corporate governance system adopted by Enel isoriented toward the goal of sustainable success, giventhat it is aimed at creating value for shareholders overthe long term, aware of the importance from an environmental and social point of view of the Enel Group’s operating activities and the consequent need to proceed withadequate consideration of all the interests of the relevant
stakeholders.

For a detailed illustration of Enel’s corporate
governance, please refer to the Report on Corporate
Governance and Ownership Structure for 2023, which isavailable on the Company’s website (www.enel.com); pleasealso refer to the specific section of this Sustainability
Report for an illustration of the governance of sustainability
and the management of climate change.

Board of Directors
2-9

2-10

2-11

2-12

2-13

2-14

2-16

The Board of Directors in office was appointed by the Ordinary Shareholders’ Meeting of May 10, 2023 and consists of nine members.
Enel applies diversity criteria, also in relation to gender,
in the composition of the Board of Directors, in line withthe priority goal of ensuring adequate competence andprofessionalism of its members. Specifically, in January
2018 the Board of Directors, acting on a proposal of the
Corporate Governance and Sustainability Committee
and the Nomination and Compensation Committee, andin implementation of what is required by the Consolidated Law on Finance, approved a diversity policy that describes the optimal characteristics of the Board’s composition to ensure it can fulfil its duties as effectively as
possible, making decisions that can tangibly benefit fromthe contribution of a plurality of different qualified members able to examine the issues under discussion fromdiverse perspectives. The Board of Directors, whose term
expires with the approval of the financial statements forthe 2022 financial year, in providing shareholders with its
guidance on the optimal size and composition of theBoard of Directors, with a view to its renewal by the Ordinary Shareholders’ Meeting of May 10, 2023, expressly
took into account the criteria set out in the diversity policy. The composition of the Board of Directors appointed by the above-mentioned Shareholders’ Meeting fully
respects the objectives set out in the said policy for the

2-17

2-18

3-3

405-1

various types of diversity.
The Board of Directors held 15 meetings in 2023, of
which 6 addressed climate-related matters, reflected in
the strategies and related implementation methods.
Following the appointment of the Board of Directors decided on by the Ordinary Shareholders’ Meeting of May
10, 2023 and taking into account the renewal of the entire Board, the Company organized a special induction
program aimed at providing the Directors with adequate
information of the Group’s business sectors, as well as its
corporate dynamics and their evolution, market trends,
and the legal framework; also the Statutory Auditors participated in this program. During 2023, several induction
sessions were held that covered the corporate governance of the Company and the Group, the structure andoperation of the electricity system in general, as well as
in-depth analyses of the Group’s Business Lines (i.e., Enel
Green Power and Thermal Generation, Global Energy andCommodity Management and Chief Pricing Officer, Enel
Grids, Enel X Global Retail) and the Staff People and Organization Function. Finally, an induction session dedicated to climate change was held in February 2024.
The maximum number of offices that the members of
the Board of Directors can hold on the Board of Directors
or governing bodies of other companies of a relevant
size is regulated by a specific corporate policy, which waslast updated in 2020 in order to adapt the contents to(1) It is available on the Borsa Italiana website (at https://www.borsaitaliana.it/comitato-corporate-governance/codice/2020-eng.en.pdf).
(2) The Corporate Governance Code defines a “large company” as any company whose capitalization exceeded 1 billion euros on the last trading day of eachof the previous three calendar years, as well as “company with concentrated ownership” as any company in which one or more shareholders participating ina shareholders’ agreement have, directly or indirectly (through subsidiaries, trustees or intermediaries), the majority of the votes exercisable at the Ordinary
Shareholders’ Meeting.

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Letter to stakeholders

2Enel’s commitment
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3

Stakeholder engagement andmateriality analysis

the relevant best practices prepared by the main proxyadvisors and relevant institutional investors.
In order to regulate the way in which the Company engages with institutional investors and with all shareholders and bondholders, in March 2021 the Board of
Directors adopted a specific policy (i.e., “Engagement
Policy”), acting on a proposal of the Chairman formulated in agreement with the Chief Executive Officer, whichclarified to a large extent the practices already followed
by Enel and whose use takes into account the applicable best practices adopted by the institutional investors
and reflected in the “stewardship” codes. In this regard,
during 2023, the Company maintained an ongoing dialog
with institutional investors, also with reference to certain
profiles concerning sustainability, with a particular focus
on climate change.
In relation to the topic of succession plans for executive
directors, in September 2016 the Board of Directors, acting on a proposal of the Nomination and Compensation
Committee made in agreement with the Corporate Governance and Sustainability Committee, shared the contents of a specific “contingency plan” aimed at regulating the steps to be taken to assure proper managementof the Company in case the Chief Executive Officer ceas-

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Performance 2023

5

Appendixes to hold office before the end of their ordinary term
(defined as “crisis management” cases).
Finally, at the end of 2023 and during the first months of2024, with the assistance of an independent consultant,the Board of Directors carried out an assessment of thesize, composition, and functioning of the Board itself and
its Committees (i.e., “board review”), in line with international best practice in corporate governance assimilated
in the Corporate Governance Code. The board review was
conducted also in accordance with the peer-to-peer review method, i.e., through assessment not merely of theoperation of the body considered globally, but also of thestyle and contents of the contribution provided by each ofits members, and was extended to the Board of Statutory
Auditors. In the context of the board review, the Directors’questionnaires and interviews also concerned the implementation of the principles of sustainability in the strategies and business model of the Company and the Group,
together with the attention devoted by the Board of Directors to sustainability (especially the energy transition andits impacts). The results of the board review are provided
in Enel’s Report on Corporate Governance and Ownership
Structure for the 2023 financial year.

Enel’s governance model for sustainability
2-9
Enel’s organizational and corporate governance model
ensures that sustainability issues are appropriately taken
into consideration in all relevant Company decision-making processes, by defining specific tasks and responsibilities for the main corporate governance bodies.
The Board of Directors plays a central role in corporate
governance as the body vested with powers related to thestrategic, organizational and control policies of the Company and Group, and pursues the sustainable success ofthe same. In this context, the Board of Directors takes into
account the need to pursue sustainable success particularly: (i) when defining Company and Group strategies; (ii)when drawing up the remuneration policy for the Chief
Executive Officer/General Manager and Key management
personnel, defining specific sustainability objectives theachievement of which is linked to a significant componentof the variable pay; and (iii) with regard to the Company’s
Internal Control and Risk Management System (“SCIGR”),
aimed at the effective and efficient identification, measurement, management and monitoring of the main corporate risks, including those of an ESG nature.
The Board of Directors has also established internal board
committees with the power to investigate, propose andadvise, in order to ensure an adequate internal division of

its functions, as well as a related parties committee. In particular, the following committees have been established:• Corporate Governance and Sustainability Committee,
which among other things assists the Board of Directors
on sustainability issues, including issues relating to climate change and the dynamics of the Company’s interaction with all stakeholders. More specifically, with regard
to sustainability issues, the Committee examines: (i) the
guidelines of the Sustainability Plan and the materiality
matrix – which identifies the priority issues for stakeholders in light of the Enel Group’s industrial strategies– periodically assessing achievement of the objectives
defined in the Plan itself; (ii) the way in which the sustainability policy is implemented; (iii) the general outline
and structure of the content in the Non-Financial Statement referred to in Legislative Decree 254/2016 and theSustainability Report, as well as the completeness andtransparency of the information contained therein andits consistency with the principles laid down by the reporting standard used. In 2023, it addressed sustainability issues in 6 of the 7 meetings held;• Control and Risk Committee, which is tasked, among
other things, with supporting the assessments and decisions of the Board of Directors relating to the SCIGR,

Sound governance263

also with regard to risks that may be relevant from a sustainability perspective, and to the approval of periodic
financial and non-financial reports. During 2023 it dealt
with sustainability issues in 9 of the 14 meetings held;• Nomination and Compensation Committee, which istasked, among other things, with supporting the Boardof Directors in its assessments and decisions relating
to the size and optimal composition of the Board itself
and its Committees, as well as the remuneration of Directors and Key management personnel. In this regard,
the remuneration policy for 2023 provides for specificsustainability targets the achievement of which is linked
to a significant component of the variable pay of the
Chief Executive Officer/General Manager;• Related Parties Committee, which performs the tasks
required by the CONSOB regulations and by the specific Enel procedure governing transactions with relatedparties.
Furthermore, in line with the power structure currently inforce within the Company:• the Chairman of the Board of Directors acts as a link
between the executive and non-executive directors
and is responsible for ensuring the effective operationof the board; he also plays a proactive role in the process of approving and monitoring corporate and sustainability strategies;• the Chief Executive Officer is primarily responsible
for the management of the Company and acts as the
director in charge of the establishment and mainte-

nance of the SCIGR. Also, in exercising the powers
granted, he has defined a sustainable business modelby identifying a strategy aimed at guiding the energy
transition to a low carbon model;• responsibility for sustainability-related activities is
entrusted to a specific business unit called “Sustainability”, located within the “Enel Grids and Innovability”
Function, which plays a role guidance and coordination
at Group level with regard to both sustainability management processes and activities in Countries, Business Lines and Holding Company Staff Functions.
With specific reference to governance for the management of climate change, see the “Zero emissions ambition and just transition” chapter of this document, whilewith regard to the management of issues related to theprotection of natural capital, see the “Roadmap towards
natural capital conservation” chapter.
Furthermore, the Group CEO chairs the Cyber Security
Committee, which consists of the Chief Information Security Officer (CISO) and the Group’s front line, the purpose of which is to approve the IT security strategy andperiodically check the progress of its implementation.

For more information on the activities carriedout by the corporate bodies, please refer to the
Enel Report on Corporate Governance and Ownership
Structure, available at www.enel.com, “Governance” section.

Remuneration policy
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2-19

2-20

2-21

Enel’s remuneration policy for 2023, which was adopted by
the Board of Directors acting on a proposal of the Nomination and Compensation Committee and approved by
the Shareholders’ Meeting of May 10, 2023, was defined inconsideration of (i) the recommendations contained in the
Italian Corporate Governance Code, published on January
31, 2020; (ii) the national and international best practices;(iii) the information that emerged from the favorable voteof the Shareholders’ Meeting of May 19, 2022 on the remuneration policy for 2022; (iv) the results of the engagement
activities regarding corporate governance carried out by
the Company between January and February 2023 withthe main proxy advisors and some relevant institutional
investors with an interest in Enel capital; (v) the results ofa benchmark analysis regarding the remuneration of the
Chairman of the Board of Directors, the Chief Executive
Officer/General Manager and the Non-Executive Directorsof Enel for 2022, which was prepared by the independent
consultant Mercer.

264 Sustainability Report 2023

The purpose of this policy is to (i) promote Enel’s sustainable success, which is based on the creation of long-termvalue to the benefit of its shareholders, taking into due
consideration the interests of the other relevant stakeholders, in order to encourage reaching the strategic
goals; (ii) attract, retain and motivate people with the skills
and professionalism required for the delicate managerial tasks assigned to them, in consideration of the compensation and work conditions of the Company and EnelGroup employees; as well as (iii) promote the Company
mission and values.
The remuneration policy for 2023 sets out the following
compensation for the Chief Executive Officer/General
Manager and for Key management personnel (referred to
as DRS - Dirigenti con Responsabilità Strategiche):• a fixed component;• a short-term variable component (MBO), to be paid
based on the achievement of specific performance targets. Specifically:

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis– for the Chief Executive Officer/General Manager, the•2023 MBO is based on the following annual performance targets:• Ordinary consolidated net income;• Funds from operations/Consolidated net financial
debt;• Commercial complaints at Group level, accompanied by the gateway objectives represented by: (i)System Average Interruption Duration Index – SAIDI
and (ii) commercial complaints on the free commodity market in Italy;• Index of frequency of injuries at work, accompanied by the gateway objectives represented by fatalities;
for– the DRS, the respective MBO identify the annual
objectives and specific objectives correlated to theStrategic Plan and identified together with the Administration, Finance and Control Function and by
the People and Organization Function;a long-term variable component linked to participationin specific multi-annual incentive plans. In particular, for2023 this component is linked to participation in theLong-Term Incentive Plan destined for the management of Enel SpA and/or of its subsidiaries pursuant toarticle 2359 of the Italian Civil Code (“LTI Plan 2023”),
which sets out the following three-year performance
objectives:• average Enel TSR (Total Shareholders Return) vs average Euro Stoxx Utilities – UEM index TSR in thethree-year period 2023-2025;• cumulative ROIC (Return on Invested Capital) –WACC (Weighted Average Cost of Capital) in thethree-year period 2023-2025;• Scope 1 and 3 GHG emissions Intensity relating toIntegrated Power (gCO2eq/kWh) to 2025, accompanied by the gateway objective represented by
Scope 1 GHG emissions Intensity relating to Power
Generation (gCO2eq/kWh) to 2025;• percentage of women in the Top Management
succession plans at the end of 2025.

4

Performance 2023

5

The 2023 LTI Plan also requires any premium accrued tobe represented by a share component, to which – basedon the level of achievement of the various targets – a monetary component can be added. In particular, with respect
to the total incentive accrued, the LTI Plan 2023 provides
that: (i) for Enel’s Chief Executive Officer/General Manager,up to 150% of the base value, the incentive is paid in fullin Enel shares; (ii) for the first carry-overs of Enel’s Chief
Executive Officer/General Manager, including DRS, up to
100% of the base value, the incentive is paid in full in Enelshares; (iii) for other recipients, other than those indicatedin points (i) and (ii), up to 65% of the base value, the incentive is paid in full in Enel shares. The LTI Plan 2023 provides
that the shares to be disbursed pursuant to the latter will
be purchased in advance by Enel and/or its subsidiaries. In
addition, the disbursement of a significant portion of thelong-term variable remuneration component (70% of thetotal) is deferred to the second subsequent financial yearwith respect to the three-years of reference for the objectives of the 2023 LTI Plan (i.e., “deferred payment”).

For more information on the contentsof the 2023 remuneration policy, refer to the Reporton the Enel remuneration policy for 2023 and on thecompensation paid in 2022, available on the Company
website (www.enel.com).

Finally, the table below presents for 2019, 2020, 2021,
2022 and 2023 the ratio between the total remuneration
accrued both by the Chief Executive Officer/General Manager of Enel in office until the Shareholders’ Meeting of
May 10, 2023, and by the Chief Executive Officer/General
Manager of Enel appointed by the said Meeting and theaverage gross annual remuneration of Group employees(i.e., “pay ratio”). This report is indicated, for complete disclosure, also in reference to only the fixed component of
the remunerations in question.

2023

2022

2021

2020

2019

Pay Ratio – Ratio between the total remunerationof the CEO/GM of Enel in office until May 10, 2023
and the average annual gross remuneration ofGroup employees(1)25x(11x fixed
remuneration)

62x(32x fixed
remuneration)

92x(34x fixed
remuneration)

145x(35x fixed
remuneration)

142x(36x fixed
remuneration)

Pay Ratio – Ratio between the total remunerationof the CEO/GM of Enel in office since May 12, 2023
and the average annual gross remuneration ofGroup employees

43x(20x fixed
remuneration)

N.A.

N.A.

N.A.

N.A.

(1)

Appendix

In order to make the figures for the financial years 2023, 2022, 2021, 2020 and 2019 comparable, the figures for 2022 to 2019 have been restated by applying the 2023 exchange rate to remuneration.

Sound governance

265

The Enel Group risk governance model
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3-3

201-2

When performing its industrial and commercial activities,
the Enel Group is exposed to risks that could influence its
economic and financial results if they are not effectively
monitored, managed and mitigated.
In this regard, in compliance with the architecture of theInternal Control and Risk Management System (“ICRMS”)(3)

adopted by Enel, the Group has also implemented a risk
governance model based on certain “pillars” as set out
below, as well as a homogeneous taxonomy of risks (socalled “risk catalog”) that facilitates management and organic representation.

The “pillars” of risk governance
Enel has adopted a reference framework concerning risk
governance that is expressed in detail through specificmanagement, monitoring, control and reporting measuresfor each of the identified risk categories.
GROUP
RISK
COMMITTEE

1.
LINES
OF DEFENSE

2.

The Group’s risk governance model is in line with national
and international best practices in risk management and isbased on the following pillars:

RISK
APPETITE
FRAMEWORK

3.
LOCAL
RISK
COMMITTEES

1. Lines of defense. The Group adopts measures that are
structured according to three lines of defense for therisk management, monitoring and control activities, incompliance with the segregation of roles in the main
scopes in relation to the relevant risks.
2. Group Risk Committee. This body, which is established
on a managerial level and chaired by the Chief Executive Officer, is responsible for activities related to thestrategic direction and supervision of risk management
through:• the analysis of the main exposures and the main risk
topics for the Group;• the adoption of specific risk policies applicable toGroup companies in order to identify the roles andresponsibilities for the risk management, monitoring and control processes, in compliance with theprinciple of organizational separation between the
structures responsible for management and those
responsible for the monitoring and control of risks;• the approval of specific operating limits, authorizing,
where necessary and suitable, operational deroga-

4.

REPORTING

5.

6.

POLICYtions in the case of specific circumstances or requirements;• the definition of risk response strategies.
The Group Risk Committee generally meets four times
a year and can also be convoked, if considered necessary, by the Chief Executive Officer and by the managerof the Risk Control unit, which is part of the Administration, Finance and Control Function.
3. Integrated and wide-spread system of local risk committees. The presence of specific local risk committees, according to the main Global Business Lines andCountries and Regions of the Group and chaired by
the respective senior managers, guarantees a suitable
control of the risks most relevant on a local level. The
coordination of these committees with the Group Risk
Committee facilitates the opportunity for sharing information and mitigation strategies regarding the most
relevant exposures with the Group’s Top Management,
as well as for implementing on a local level the guidelines and strategies defined on a Group level.

(3) More details can be found in the Report on Corporate Governance and Ownership Structure (www.enel.com, “Investors” section), as well as in the ICRMS
guidelines available in the “Governance” section.

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Stakeholder engagement andmateriality analysis

4. Risk Appetite Framework (“RAF”). The Risk Appetite
Framework represents the framework of reference fordetermining the appetite for risk and is an integrated
and formalized system of elements that make it possible
to define and apply a unique approach to the management, measurement and control of each risk. The RAF
is summarized in the Risk Appetite Statement, a document that briefly describes the identified risk strategies
and the indicators and/or limits applicable to each risk.
5. Risk policies. The allocation of responsibilities, the coordination mechanisms and the main control activities
are represented in specific policies and organizational documents defined according to specific approval
procedures that involve the directly involved Company
structures.
6. Reporting. Specific and regular information flows on
risk exposures and metrics, expressed on the levelof the Group and the single Global Business Lines orCountries and Regions, allow Top Management and4

Performance 2023

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Appendix

Enel’s corporate bodies to have an integrated vision of
the Group’s main exposures to risk, both current andfuture.
7. ENEL Group Risk Landscape©. Based on risk governance and according to the international Risk Management standards ISO 31000:2018, the Group constantly monitors risks thanks to a process supported
by a data visualization tool (e-Risk Landscape©). Thissystem collects and organizes contributions from theGroup’s various Countries and Regions and BusinessLines, categorizing them according to the definition of
the risk catalog adopted by the Group. The monitoring
and control process involves the assignment of metrics
based on the probability of occurrence of risk events(likelihood) and the extent of potential economic and financial impact, providing the Group’s Top Managementwith a dynamically updated view of the Group’s risk
profile and management and mitigation actions. These
dimensions, modulated by means of representative
grids, give an indication of the level of individual risks.

The Group’s “risk catalog”
Enel has a “risk catalog” that represents the reference
point on a Group level and for all the Company structures
involved in the risk management and monitoring processes. Adoption of a common language facilitates mappingand organic representation of risks within the Group, thus
permitting the identification of the main type of risks that
influence Company processes and of the roles of the organizational units involved in their management.

With the scope of the above-mentioned “risk catalog”, thetypes of risk are grouped into macro-categories, which
include, as shown below, the strategic, financial and operational risks, risks of (non) compliance, risks related togovernance and culture as well as digital technology.

RISKS
STRATEGIC

GOVERNANCE
AND CULTURE

DIGITALTECHNOLOGYFINANCIALOPERATIONALCOMPLIANCE

The main ESG-related risks
Due to the nature of its business and its geographical distribution, the Group is exposed to different types of ESG risk
(environmental, social, and governance), identified within thereference framework of risk categories adopted by Enel.
In the risk identification and assessment stage, the “Precautionary Principle”(4) was applied, particularly in relation
to risks relating to the environment, health, and safety. For
each type of risk, specific actions have been identified tomitigate effects and ensure correct management. Enelalso applies this principle to risk management, especiallywith regard to the development and introduction of new
products/technologies, planning of operating assets andthe development and construction of new plants/assets.
The following is a description of the main ESG-relatedrisks and the actions intended to mitigate their effects
and assure their correct management.

(4) Rio Declaration on Environment and Development (Rio de Janeiro, June 3-14, 1992), Principle 15.

Sound governance267

MAIN ESG-RELATED RISKS

MACROECONOMIC AND GEOPOLITICAL TRENDSLEGISLATIVE AND REGULATORY DEVELOPMENTCOMPETITIVE LANDSCAPE
RISKDEFINITION

Risk of ineffective identification, evaluation and monitoring of the economic-financial, political and global social trends, aswell as changes to monetary, tax and commercial policies.
The risk of adverse legislative and regulatory developments and/or ineffective identification, evaluation, management andmonitoring of legislative and regulatory changes in terms of communication of the new obligations for compliance, advocacy activities and internal gap analyses. Risk of an insufficient systematic process for the evaluation of regulatory exposuresderiving from new strategic and business initiatives.
Risk of ineffective identification, evaluation and monitoring of evolving market trends that can have an impact on competitive
positioning in markets, growth and Group profitability.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKThe strong internationalization of the Group – located in various regions, including South America, North America and Africa– makes Enel obligated to consider and assess the so-called “Country risk”, which consists of risks of a macroeconomic andfinancial, institutional and social nature and those associated with the energy sector, which could cause a significant effecton income flows and the value of company assets if they occur.

STRATEGICThe Group also operates in regulated markets and changes in the operating rules of the various systems, as well as the associated requirements and obligations, influence the Group’s trend of operations and results.
The analysis of the competitive landscape and the consequent risks associated with market trends are significant elementsof the analysis of the context in which the Group operates and defines its business ambitions.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Enel has adopted a quantitative Open Country Risk assessment model that is able to monitor the risk of the Countries within
its own scope. The Open Country Risk model aims to go beyond the more conventional definition of Country risk focusedon the ability of a government to repay its issued debt, to offer a broader view of the risk factors that can impact a country.
Specifically, the model is divided into four risk components: economic, institutional and political, social and energy factors.
Legislative and regulatory developments are constantly monitored, such as the periodic review of the regulations in the
distribution sector and the processes of liberalization of the electricity markets, with particular attention to the acceleration
expected in Italy, and to the expectations of evolution in Latin America. In relation to risks that may arise from these changes,
relations were intensified with local government and regulatory bodies, adopting an approach based on transparency, collaboration and proactiveness in addressing and removing sources of instability of the legislative and regulatory framework.
The risks associated with market trends are also mitigated by the periodic monitoring of competitors’ comparative industrial
and financial performance.
Assessment is carried out through a framework aimed at (i) identifying the most relevant competitors and peers, (ii) analyzing
their results, the main business drivers, strategic and industrial objectives, and (iii) understanding their current and prospective positioning.
The process of identifying the relevant companies is periodically updated to ensure timeliness in the collection of information, KPIs and signaling elements useful for the Group’s positioning and strategic planning activities.
See also what stated in the Integrated Annual Report.

268 Sustainability Report 2023

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Stakeholder engagement andmateriality analysis

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Performance 2023

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Appendix

CLIMATE CHANGE

RISKDEFINITION

Risk of ineffective identification, evaluation and monitoring of the risks related to climate change – caused by acute or chronic climatic events (physical risk) and the effects of regulatory, technological and market trends deriving from the transition
toward a low carbon emissions economy (transition risk) – by means of strategic and operative initiatives for adaptation toand mitigation of climate risks.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

The physical risks arising from climate change can be classified as acute (or extreme events) or chronic: the former are
linked to extremely intense weather-climatic conditions, while the latter refer to gradual and enduring changes in climaticconditions.
Extreme events may expose the Group to potential unavailability of assets and infrastructure, service restoration costs, inconvenience for customers, etc. Chronic changes in climatic conditions, on the other hand, may expose the Group to otherphysical risks or opportunities (depending on the geographical location): for example, structural changes in rainfall or wind
patterns could impact the Group’s business in generation terms, while structural temperature changes can impact electricity
demand.
With regard to the energy transition process towards a more sustainable model with a progressive electrification and reduction in CO2 emissions in line with the Group’s decarbonization strategy, there are risks, but above all opportunities, tied toboth the changing regulatory context and the technological and electrification trends, and resulting market developments,
with potential effects also on commodity and energy prices.

STRATEGIC

1

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGICGOALSThe Group is committed to the continuous improvement of the environmental impact of its activities. In this context, theGroup has brought forward its public commitment by 10 years, from 2050 to 2040, to complete the decarbonization processof its entire value chain, including its own direct and indirect emissions (so-called “Net Zero”).
Along its path to complete decarbonization, Enel has created a roadmap that has medium-term objectives by 2030 withrespect to the levels of the year of reference 2017, certified by the Science Based Targets initiative (SBTi) in line with the 1.5 ºC
pathway. In particular, the Company is committing to reducing: (i) 80% of direct greenhouse gas emissions connected to power generation per kWh, in line with the 1.5 °C pathway, as already certified by the Science Based Targets initiative (SBTi), (ii) 78%
of the emissions connected to electricity sales per kWh, (iii) 55% of the absolute emissions connected to the retail sale of gas
and (iv) 55% of the other absolute direct and indirect emissions. The Group’s strategic actions make it possible to mitigate
the potential risks and exploit the opportunities associated with transition variables. In this context, capital employment iscentered on decarbonization through the development of assets for generation from renewable sources, on enabling infrastructure linked to the development of networks, and on the implementation of platform models, fully exploiting technological and digital evolution which will favor consumption electrification and the development of new services for end customers.
Furthermore, Enel participates in the entire electricity value chain and has a diversified activities portfolio, both in termsof generation technologies and the Countries and Regions in which it operates, mitigating climate change risks and theirimplications in terms of economic and financial impacts.
The management of weather and climate phenomena adopts the best strategies for prevention, protection and increasing
resilience. For example, the Group uses weather forecasts, procedures for the management of adverse events and monitoring and analysis activities that provide for the definition of actions to protect and increase resilience, both for existing assets
and for those under construction. Also, best practices are implemented in relation to physical events to ensure prompt recovery of operating conditions following adverse events.
In terms of insurance risk assessment activities, the Group manages loss prevention global programs for property and liability risks, aimed at covering losses relating to damages to assets, business interruptions and damages to third parties.
Such activities also include the assessment of the main exposures linked to natural events and, together with prevention
and resilience enhancement measures, contribute to optimizing the insurance strategy. The Group develops short, medium
and long-term scenarios in the energy and macro-economic financial spheres in order to support its strategic and industrial
planning activities, investments assessment, scenario planning activities and activities related to extraordinary transactions.
All these activities, together with the integration of climate and transition scenarios and the development of an energy modelat country level, enables a prompt assessment of the risks and opportunities relating to climate change. This approachmakes it possible to intercept effects on variables such as electricity demand, the system energy mix and consumption
electrification. In addition, the Group’s policies define guidelines for the assessment of risks and opportunities relating toclimate change.
See also the chapter “Zero emissions ambition and just transition” of this document.

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STAKEHOLDER ENGAGEMENTRISK
DEFINITION

Risk of ineffective engagement of key stakeholders in relation to the strategic positioning of Enel regarding sustainability andfinancial objectives, due to the lack of understanding, anticipation, or orientation of their expectations, which may not becompletely integrated into the Group’s business strategy and sustainability planning processes, with a negative impact on its
reputation and competitiveness.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKThe risk of ineffective engagement of key stakeholders in relation to the strategic positioning of Enel, due to the lack ofunderstanding, anticipation, or orientation of their expectations, could cause incomplete integration of such expectations
within the Company’s business strategy and sustainability planning processes, with a potential negative impact on its reputation and competitiveness.

GOVERNANCE & CULTURE

Enel currently operates in a vast geographical area, conducting business activities that call for the development of infrastructure in local areas, which can provoke criticism or potential disputes with communities in some cases. Such conditions
could lead to delays in the execution of projects for new sites and impacts on operational continuity.
At December 31, 2023, socially responsible (SRI) funds constituted approximately 17.5% of the share capital (up on the 14.9%
at December 31, 2022), while PRI (Principles for Responsible Investment) signatory investors represent 42.8% of the sharecapital (vs 42.1% at December 31, 2022). Possible incorrect or incomplete disclosure by Enel of the results obtained, and likewise ineffective communications to the financial community of its strategy, which aims to create value for customers, society,and the environment, could have significant negative impacts on the assessment of Enel’s shares and bonds.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGICGOALSEngaging communities and understanding the different contexts in which the Group operates is therefore essential todevelop a sustainable business that minimizes impacts while promoting inclusive and equitable growth in the local area.
The management of relations with the communities in which Enel operates is an enabling factor for all sustainability activities
and is achieved by integrating the needs of local communities into the development of its business activities, from the growthof renewables to the digitalization of grids and the electrification of uses.
Aware that the Group’s activities can have a direct and indirect influence on the communities in which it operates, Enel
adopts a model of shared value creation with them along the entire value chain, which integrates social as well as environmental sustainability criteria into the various processes from the early stages of development, moving towards circularity
solutions, technological innovation, and harmonious integration with the territory. This model is in line with the main international standards of reference (such as the United Nations Guiding Principles on Business and Human Rights and the OECD
Guidelines for Multinational Enterprises), which underpin Enel’s commitment to human rights in business practices.
See also the chapter “Engaging communities” of this document.

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AppendixCYBER SECURITY

RISK
DEFINITION

Risk of cyber attacks and theft of sensitive or massive Company and customer data, due to a lack of network, operating
system and database security.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKThe speed of technological development, which brings an endless stream of new challenges, the frequency and intensity ofthe ever increasing number of cyber attacks, as well as the tendency to strike critical infrastructure and strategic industrial
sectors, highlight a risk that can cause normal business operations to grind to a halt in extreme cases. Cyber attacks havechanged dramatically in recent years: the number has grown exponentially, as has their level of complexity and impact. Within
the scope of the Group, the management of the cyber risk results, among other aspects, from the numerous contexts inwhich it operates (data, industry, and people), in addition to the intrinsic complexity and interconnection of digital resources
which, over the years, have been increasingly integrated into the Group’s routine operating processes. In this context, it isclear that cyber risk must be managed without hesitation and in an integrated manner. In a nutshell, technological transformation would be unthinkable without paying careful attention to cyber security issues.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

To oversee cyber risk, the Group has defined the Cyber Security operating model and a related process framework. Specifically, the operating model defines roles and responsibilities for the implementation of the framework’s processes, providing
for an ad hoc unit, whose responsibility is entrusted to the CISO (Head of Cyber Security) and integrated into a matrix also
aimed at the Group’s business areas. In addition, the Group has designed and adopted a holistic framework of processes
aimed at management of cyber security issues, applicable across the board to the Information Technology (IT), Operational
Technology (OT) and Internet of Things (IoT) sectors. The framework defines a governance model based on the commitmentof Top Management, the global strategic approach, the involvement of all business areas, as well as the units engaged in
the design and implementation of the IT, OT and IoT systems to act as a solid basis for the complete fusion of technologies,
processes, and people. The framework is based on two essential principles, i.e., the “risk-based approach” and “cyber security
by design”. The former establishes that risk assessment is the prerequisite for strategic decisions and for the secure development and maintenance of all assets of the business organization; the latter ensures the adoption of cyber security principles
from the outset and throughout the entire life cycle of solutions, services, and infrastructures in all areas, i.e., IT, OT, and IoT.
In applying this framework, the cyber risk management method has been established. It is also applicable to all IT, OT and IoT
environments and includes the phases required to carry out a risk analysis and define the related mitigation plan, in line withthe stated cyber security goals. To balance the advantages obtained by the operation and use of IT/OT/IoT systems with therisk that can potentially derive from them, well-informed, risk-based decisions are of fundamental importance.

DIGITAL TECHNOLOGY

1

Enel has also set up a Cyber Emergency Readiness Team (CERT) to respond to and proactively manage possible cyber security incidents.
To measure the possible impacts of cyber risk in economic and financial terms, Enel has developed the “Cyber Value-at-Risk”(“Enel Group Cyber V@R©”) methodology, which is currently evolving, to calculate Value-at-Risk in different attack scenarios.
See also the chapters “Digitalization” and “Innovation” of this document.

DIGITALIZATION, IT EFFECTIVENESS, AND SERVICE CONTINUITY

RISK
DEFINITION

Risk of the ineffective management of company processes and higher operating costs due to a lack of digitalization in termsof coverage of work flows, system integration and adoption of new technologies.
Risk of ineffective IT system support for business processes and operating assets.
Risk of exposure of IT/OT systems to service interruptions and data loss.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKThe Group is carrying out a complete digital transformation of the management of the entire energy value chain, developing
new business models and digitalizing its business processes, integrating the systems and adopting new technologies. One
result of this digital transformation is that the Group is increasingly exposed to risks relating to the operations of IT systems
integrated across the Company, with impacts on processes and operating assets that could lead to the exposure of IT andOT systems to service interruptions or data losses.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGICGOALSControl of such risks is guaranteed by a series of internal measures developed by the Group to oversee the digital transformation. In particular, an internal control system has been set up, which introduces control points along the entire IT value
chain, enabling the Group to prevent the emergence of risks relating to such issues as the creation of services that do notmeet business needs, the failure to implement adequate security measures and service interruptions. The internal control
system oversees both the activities performed in-house and those outsourced to external associates and service providers.
Enel is also promoting the dissemination of digital culture and skills within the Group, so as to guide the digital transformation successfully and minimize the associated risks.
See also the chapter “Digitalization” of this document.

Sound governance271

ENVIRONMENTRISKDEFINITION

Risk that inadequate work operations or machinery can have a negative impact on the quality of the environment and the
involved ecosystems.
Risk of infringement of international, national or local laws and regulations.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKOver the last few years, there has been a growing awareness within society of the risks arising from development models
that involve impacts on the environment and ecosystems, with a particular emphasis on global warming and the increasing
exploitation and degradation of water resources. These impacts have led to increased concern for the quality of the environment and the health of ecosystems, with a growing awareness of the associated risks.

OPERATIONAL

The analysis of the environmental risks associated with Enel’s activities was conducted using an integrated and multifunctional approach, based on the results of the materiality analysis for impacts and dependencies. The assessment made it
possible to identify the main operational and economic-financial risks resulting from the potential environmental and social
impacts associated with the various activities and technologies, including the impact related to land occupation and ecosystem transformation, the depletion of natural resources, including the impact related to water scarcity conditions, and thepollution of environmental matrices.
In addition to operational risks, reputational and transitional risks were also assessed, resulting from possible changes in theregulatory, technological, or market framework and the associated opportunities.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Enel is committed to the prevention and minimization of environmental impacts and risks in every activity and throughout
the entire life cycle of projects. The adoption of ISO 14001-certified Environmental Management Systems within the Groupalso ensures the presence of structured policies and procedures to identify and manage the environmental risks and opportunities. A structured control plan combined with actions and improvement objectives inspired by the best environmental
practices mitigates the potential impacts on the environmental matrix and consequently reputational damage and legal
disputes. Enel has also taken multiple actions to achieve the challenging environmental improvement goals, concerning e.g.,
atmospheric emissions, waste produced, water withdrawal, especially in high water stress areas, and impacts on habitats andspecies.
The impact in high water stress areas is mitigated directly by Enel’s development strategy based on the growth of generation from renewable sources, which do not essentially depend on the availability of water for their operation, and by the
adoption of advanced solutions to reduce consumption in traditional combustion plants.
With regard to ecosystems, Enel adopts measures to protect and conserve biodiversity and natural habitats, following the
mitigation hierarchy (avoiding, reducing, remedying, and compensating) and monitoring the effectiveness of actions. In particular, collaboration with local river basin management authorities favors the most effective shared strategies for the sustainable management of hydroelectric generation assets.
Enel also actively participates in the international debate on nature and biodiversity with stakeholders and the networks withthe most influence on the topic, such as Business for Nature, Taskforce on Nature-related Financial Disclosures, World Business Council for Sustainable Development and Science Based Targets for Nature.
See also the chapter “Roadmap towards natural capital conservation” of this document.

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Appendix

HEALTH AND SAFETY

RISK
DEFINITION

Risk that inadequate work environments, structures, machinery and operations can have a negative impact on the health andsafety conditions of employees and other involved stakeholders.
Risk of infringement of international, national or local health and safety regulations.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

Generating a strong and sustainable safety culture, shared by all members of the organization, is a strategic goal. Enel istherefore committed to defining increasingly healthy and safe processes, conditions and working environments for its employees, for the companies that collaborate with it, for its customers and for the third-party communities with which it interacts on a daily basis, including by promoting dedicated training courses.
The main health and safety risks to which Enel’s people and contractors are exposed are related to the operating assets
carried out at the Group’s sites and assets. These risks can vary, or even change, depending on economic and social trends,
as well as the introduction of digitalization into processes and operational activities. Another type of risks related to healthand safety are those due to non-compliance with the laws and regulations in force, which have an impact on people’s healthand safety, and which can lead to administrative or judicial sanctions, and therefore to economic, financial, and reputational
impacts on the Enel Group.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGICGOALSOPERATIONAL

1

Each of the Group’s Business Lines has its own Health and Safety Management System in compliance with the international
standard UNI ISO 45001, which also takes into account the rigor in the selection and management of contractors and suppliers. The Management System is based on the identification of hazards, the qualitative and quantitative assessment of therisks, including economic-financial and reputational risks, the planning and implementation of the preventive and protective
measures, the check of the effectiveness of these measures and any corrective actions. These systems make it possible toensure regulatory compliance, to verify the effectiveness of processes and related remedial actions and, finally, to ensure
the diffusion and dissemination of a “risk-based” approach, as well as a robust organizational and individual culture on moregeneral health and safety issues. The key document for these systems is the Group’s Health and Safety Policy, shared with theBoard of Directors and signed by the Chief Executive Officer, which sets out the guiding principles, strategic objectives, approach and guidelines, and priorities for action to continuously improve performance in the field of health and safety at work.
From an operational point of view, health and safety risks are assessed specifically at each site or Company asset on thebasis of the activities carried out by workers and external environmental conditions. This assessment makes it possible toidentify prevention and protection measures for safety in the workplace and to plan their implementation, improvement andcontrol, in order to verify their effectiveness and efficiency. At Group level, the analysis of the events of the last three years
shows that, in relation to probability of occurrence, mechanical risks (falls, knocks, crushing and cuts) are the most common,
while in terms of potential associated impact, electrical risks are those with the most severe consequences, i.e., fatalities, lifechange, and HiPo (High Potential, which differ from fatalities, and life-changing only relating to the consequences for theworker but not in terms of dynamics).
Constant monitoring of behavior and compliance with procedures and methods of working in the field aimed at the proper management of risks to health and safety at work by both internal staff and contractors is ensured at Enel by a processof inspections, managed both by internal staff and by certified companies, which is aimed at identifying situations at risk
(non-compliance) and the relevant plans containing remedial actions, including training courses, coaching, and dissemination of safety culture.
With regard to contractors, Enel’s approach is to consider them as partners with whom to share the key principles of healthand safety for its workers, who are therefore considered on an equal footing with internal employees in the application ofthese principles and in the attention to occupational health and safety issues. Therefore, safety is integrated into the procurement processes and the performance of the companies is monitored both in the preventive phase, through the qualification
system, and in the execution phase of the contract, through numerous control processes and tools such as the Contractor
Assessment (analyses performed on contractors during the qualification phase or in cases where critical issues or low scores
emerge in the evaluation of indicators) or the Evaluation Groups (periodic cross-functional meetings, distributed across all
Global Business Lines and Countries and Regions, to assess the security performance of suppliers and decide on consequence management actions).
In addition to procedural and operational aspects, another important driver in the proper management of health and safety
risks is related to training, awareness and information activities for people. In order to promote the growth of technical skills
and a culture of safety, supporting change processes, and responding in a timely manner to the needs that emerge from thebusiness, the Enel Group has adopted a structured training management process, which aims to transform knowledge into
skills and therefore into behavior.
In addition, Enel systematically promotes the process of informing and raising awareness among staff through various company channels such as intranet news, information emails, newsletters, and magazines, periodically carrying out surveys tocollect feedback from colleagues on the improvement of processes or communication initiatives aimed at raising awarenessamong all workers on compliance with safety procedures and carving out moments of collective reflection on the dynamics
and causes that have resulted in severe injuries or fatalities.
Finally, Enel is also constantly engaged in external discussions with top international players operating in the energy sector
and beyond, through participation in intercompany roundtables set up, with a view to continuous improvement, to share bestpractices in the field of health and safety, in terms of both operational processes and innovative initiatives.
See also the chapter “Health and safety of people” of this document.

Sound governance273

CUSTOMER NEEDS AND SATISFACTION
RISKDEFINITION

Risk of the failure to reach customer expectations and requirements in terms of the quality, accessibility, sustainability andinnovation of Group products and services.
Increase in the number of vulnerable customers and energy poverty due to an increase in the price of electricity.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

The leadership of a company like Enel necessarily passes through customer care and attention to quality service, aspects thatrefer not only to the supply of electricity and/or natural gas, but also and above all to the intangible aspects of the service
perceived by the customer.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGICGOALSThe Company is constantly committed to maximizing value for customers:• responding in a comprehensive, effective and structured manner to the needs of customers, starting from listening to themand identifying their needs, taking into account the target audience and its geographical and social context;• using analytics to understand habits, expectations and consumption styles, and therefore developing products and services that are increasingly customized and responsive to their needs;• through continuous improvement, increasing the efficiency and effectiveness of process management and focusing on
digitalization;• increasing their awareness of their consumption, to identify the most convenient offers and to be able to choose ways toincrease their energy efficiency;• accompanying them toward electrification.
In addition, Enel disseminates innovative and inclusive products and services for all customers, including those in vulnerable
conditions (e.g., due to age, disability, and economic vulnerability).
The Group regularly monitors the rate of customer satisfaction in every country in which it operates through specific surveys
and analysis of the received feedback.

OPERATIONAL

See also the chapters “Zero emissions ambition and just transition” and “Customer centricity” of this document.

PROCUREMENT, LOGISTICS, AND SUPPLY CHAIN
RISKDEFINITION

Risk of ineffective procurement activities or contract management due to an inadequate definition of supplier requirementsor their qualification process, frequent recourse to direct awards, deficiencies in scouting activities, insufficient monitoringof compliance with contractual obligations, failure to apply penalties.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

Enel could be exposed to reputational, economic or financial risks following ineffective procurement activities along theentire process. Starting from the supplier qualification phase in which, for example, an analysis is not performed regarding
environmental and social aspects (including work practices, such as refusal of forced or child labor, respect for diversity andnon-discrimination, freedom of association and collective bargaining, fair and favorable working conditions); during the tender stage, not requiring specific sustainability requirements; during the entire contract period without correctly monitoring
the requirements applied in the tender; in the case of excessive recourse to direct awards, and the failure to apply penalties.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Global Procurement contributes to creating a resilient and sustainable supply chain, urging thinking in terms of circular
economy, encouraging innovation, sharing the Group’s values and objectives with suppliers who, as such, become enablers
to achieve Enel’s targets. More specifically, in tenders it is possible to apply rewarding factors or mandatory requirements
aimed at generating virtuous behavior on the part of suppliers. These include: 1) rewarding factors related to the measurement and reduction of suppliers’ Carbon Footprint, which encourage them to undertake improvement paths; 2) rewarding
factors related to social aspects, such as training and employment of people belonging to local communities and actions
aimed at respecting gender diversity; 3) mandatory human rights requirement inherent in the mapping of the potential supply chain involved in the supply of strategic product categories.
From the perspective of the procurement process, the various units adopt the practice of tenders, guaranteeing the maximum competition and equal opportunity of access to all operators having the necessary technical, economic-financial,environmental, safety, human rights, legal and ethical characteristics. Procurement by direct award and without a competitive
procedure can occur only in exceptional suitably motivated circumstances in compliance with the relevant statutory legislation. Moreover, the global supplier qualification system, the same one throughout the Group – even before the procurement
process starts – checks begin that potential suppliers are in line with the strategic corporate vision and the adopted policies.
With regard to the risk governance system, Global Procurement is focused on the application of metrics that indicate thelevel of risk before and after the mitigation action, in order to implement precautionary actions to reduce uncertainty toa tolerable level or to mitigate any impacts in all business, technological and geographical areas. The effectiveness of risk
management in the supply chain is monitored using specific indicators, including various factors such as the probability of
insolvency, the concentration of contracts with individual suppliers or industrial groups, the supplier’s dependence on Enel,the performance index for proper conduct during the tender, quality, punctuality and sustainability in the execution of thecontract, Country risk, etc., for which thresholds are defined that guide the definition of the procurement, negotiation andaward strategy of a tender, allowing informed choices of risk and potential benefit. In addition, through a specific contractual
obligation, Global Procurement constantly monitors the performance of suppliers in order to identify any corrective actions.
See also the chapter “Sustainable supply chain” of this document.

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Appendix

BUSINESS INTERRUPTIONRISKDEFINITION

Risk of the partial or total interruption of company activities due to technical faults, malfunction of goods and systems, human error, sabotage, unavailability of raw and/or semi-processed materials or adverse climatic events.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

Enel may be exposed to the risk of judicial or administrative sanctions, economic or financial losses, and reputational damage as a result of partial or total interruption of commercial operations and of electricity supplies to customers, caused bytechnical faults, malfunctions of assets and plants, human error, sabotage, unavailability of raw materials or adverse weather
events, or infectious diseases with epidemic or pandemic potential that may limit the normal functioning of the Group’s
activities or of its supply chain.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Enel has systems and mechanisms to guarantee a continuous and safe energy supply to the national electrical systems of thecountries in which it operates. Enel is therefore constantly at work to develop and improve the efficiency of the transport anddistribution network, in coordination with the other entities operating on the network infrastructure in various capacities. Enel
carries out actions of network development, modernization, and maintenance on the infrastructure existing in all countries,
with the primary aim of improving the quality of the service delivered and reducing the number and duration of outages. Enelalso constantly takes operational efficiency and safety measures to guarantee correct functioning and availability of all its power
plants. Lastly, the Group’s assets are covered by adequate insurance mechanisms to protect the Company from potential negative economic consequences resulting from future and uncertain events.
Enel implements adequate protocols, plans and actions to ensure the smooth running of its business activity worldwide or, if
necessary, its rapid recovery in the event of service interruptions.
Here are some examples of the actions taken:• during 2023, extremely intense wind storms were also recorded in urban areas in Brazil, causing branches and trees to fall. In
response, Enel defined a so-called “Crash Program”, which focuses on two main axes:– to prepare the network for these conditions with an extraordinary pruning and cutting plan, in full agreement with the municipalities, and with optimized maintenance management on critical assets;– to improve the ability to handle emergencies: both from an operational point of view, with constant monitoring of weather
forecasts and the relevant adjustment of available resources, and in the management of information flows to all stakeholders;• in recent years, in Italy, the weather phenomena with the greatest impact have been summer heat waves. In response, Enel’ssolution involves upgrading the existing grid with intrinsically resilient components and enhancing the degree of grid meshing.
See also the chapters “Sustainable supply chain“ and “Customer centricity” of this document.

OPERATIONAL

1

PEOPLE AND ORGANIZATIONRISKDEFINITION

Risk of inadequate Group organizational structures or lack of internal skills due to the absence or inadequacy of training
programs, inefficiency of incentive systems, inadequacy of the turnover planning process or inability to define effective processes of employee recruitment and retention policies.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

The profound social, economic, demographic, and cultural transformations we are experiencing, from energy transition to
the digitalization and technological innovation processes, and the rapid spread of artificial intelligence, have a profound
impact also on the world of work, renewing the paradigms, imposing significant cultural and organizational changes that
require new professional profiles and skills.
To face the change, it is mandatory to act in an inclusive manner, putting people at the center in relation to their social andwork aspects, with tools suitable for facing this epochal transformation.
Organizations are expected to be increasingly oriented toward new agile, flexible work and business models that are sustainable along the entire value chain. It is also essential to adopt policies that value diversity and the talents of everyone, withthe awareness that the contribution of the individual represents an essential component for the creation of wide-spread andshared value.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Centrality of the person, constant listening, sharing, strengthening of the entrepreneurship of individuals, involvement are
only some of the key words that guide the way of working and experiencing the Company.
Thanks to an increasingly efficient, leaner organization and to operational simplification, the management of human capitaland the centrality of people take on a fundamental role in implementing the Group’s industrial strategy, as an enabling factor
to which specific objectives are linked, the main ones including: constant development of skills and expertise, promotion of
reskilling and upskilling programs for Enel people (continuous, customized, flexible, accessible and transversal) to enableeach person to make change and be a protagonist with their own distinctive contribution to achieving better results supported by increasing personal satisfaction, understood as motivation and well-being; creation of workplace and performanceappraisal models; the dissemination and rigorous assessment of the effects in all the countries in which the Group is presentof the diversity and inclusion policy, as well as an inclusive organizational culture based on principles of non-discriminationand equal opportunities, key drivers to attract and retain talent.
The Group is committed to strengthening the resilience and flexibility of its organizational models through organizational
and procedural simplification and digitalization of processes, in order to enable the autonomy and responsibilities of theindividuals and teams, strengthening the people empowerment processes and favoring the entrepreneurial approach that
promotes people’s talents, attitudes and aspirations. The hybrid work method and the promotion of internal mobility, which
combines work on site and remote working in flexible proportions that take the needs of everyone into account, such as theuse of innovative and flexible organizational models, are tools targeted toward sustaining this evolution of the organizational
culture in terms of trust, proactive responsibility, and entrepreneurship.
See also the chapter “Enel people” of this document.

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COMPLIANCEDATA PROTECTION
RISKDEFINITION

Risk of violation of regulations on data protection and privacy.

REFERENCESCENARIO ANDDESCRIPTIONOF RISKThe Group has the largest customer based in the public utilities sector (over 70 million end users), with a current workforce
of approximately 61,000 people; consequently, the Group’s business model calls for management of an ever larger volumeof personal data, to reach the financial and business results set down in the 2024-2026 Strategic Plan.

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

In order to manage and mitigate this risk, Enel has adopted a global personal data governance model by attributing privacy
roles at all levels (including the appointment of Data Protection Officers, “DPOs”, on the global and Country levels), and digitalcompliance tools to map applications and processes and manage significant risks concerning personal data protection incompliance with the specific nature of local sector legislation.

This involves exposure to risks related to protection of personal data, which can take the form of a loss of confidentiality,
integrity, and availability of the personal data of customers, employees, and others, resulting in the application of penalties in proportion to global sales, obstructing processes with consequent economic or financial losses and reputational
damage.

See also the chapter “Sound governance” of this document.

COMPLIANCEOTHER COMPLIANCE RISKSRISKDEFINITION

Other compliance risks: compliance with antitrust and consumer rights, corruption, external disclosure. Compliance withfinancial regulations, conformity with tax regulations, conformity with other laws and regulations.

REFERENCESCENARIO ANDDESCRIPTIONOF RISK

Enel may be exposed to the risk of judicial measures, administrative sanctions, economic or financial losses and reputational
damage as a result of:• illegal or illicit conduct, including active and passive acts of corruption, perpetrated by personnel inside or outside theGroup in order to secure an unjust benefit for themselves or for others;• infringement of international, national or local laws and regulations concerning: accounting, financial, or tax discipline,
market disclosures, anti-trust and consumer rights issues or other applicable legislative provisions (e.g., rules concerningpermitting or contracts, regulation of electricity markets, international sanctions, etc.).

MITIGATIONACTIONS AND
ASSOCIATEDSTRATEGIC
GOALS

Enel has adopted an Internal Control and Risk Management System expressed in company rules and procedures that all who
work in Enel or on behalf of Enel are required to follow, by means of their respective contractual commitments. The Internal
Control System also includes specific compliance programs, i.e.: the Code of Ethics, the Zero Tolerance of Corruption Plan(“ZTC Plan”), the Human Rights Policy, the Policy on international sanctions, the Enel Global Compliance Program (“EGCP”), theModel pursuant to Italian Legislative Decree 231/01 and other national compliance programs adopted by Group companies
in accordance with their national legislation. Furthermore, to further pursue its commitment to fighting corruption, Enel voluntarily decided to certify its Anti-Bribery Management System (SGPC) in compliance with the requirements of international
standard ISO 37001:2016 (international certification of anti-bribery management systems). This certification process has involved the Group’s main subsidiaries.
External staff, working for Enel Group company suppliers, undertake to comply with the ethical clauses set out in their respective contracts, which incorporate references to Enel’s commitment in terms of business integrity in the pursuit of its
activities.
The ongoing monitoring of legislative and regulatory developments at the local, national and international levels is guaranteed by the operations of specific company Functions with competence in relation to these matters.
The Sustainability Report, which represents the Consolidated Non-Financial Statement, is subjected to a limited review by
KPMG and for a set of indicators, also providing reasonable assurance.
See also the chapter “Sound governance” of this document.

In relation to the specific contexts pursuant to Italian Legislative Decree 254/16 concerning climate change, humanrights, and the fight against corruption, please refer to thesections dedicated to these topics in this Sustainability
Report.

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The other types of risk to which theEnel Group is exposed are detailed in the“Risk management” section of theIntegrated Annual Report available on the website(www.enel.com, “Investors” section).

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

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5

Appendix

Transparency in institutional processes
Enel constantly manages relations with institutions (local,
national, European, and international) in line with the Enel
Compliance Programs, providing complete and transparent information with the aim of placing institutional counterparts in the best possible position to make the decisions
within the sphere of their competence. Enel also contributes to the consultation processes regarding political andlegislative dossiers on energy and environmental issues.
In the context of relations with European institutions, Enel
actively contributes to every phase of the consultation
process on political and legislative dossiers of corporate
interest through careful monitoring and analysis (see also
the chapter “Zero emissions ambition and just transition”).
The Enel Group has been enrolled in the EU (European
Union) voluntary transparency register since its creationin 2008. The register aims to provide citizens with a single and direct access point to information on who carries
out activities aimed at influencing the EU decision-making
process, the interests pursued, and the resources invested
in these activities (http://ec.europa.eu/transparencyregister/public/homePage.do). In line with the provisions of theCode of Ethics, paragraph 3.26, Enel does not finance political parties, their representatives or candidates in Italy or
abroad, nor does it sponsor conventions or events whosesole purpose is political propaganda. It refrains from any

direct or indirect pressure on politicians (for example, by
granting the use of its facilities, accepting new recruitrecommendations, or awarding consultancy contracts).
Enel and its subsidiaries are present in various trade andemployer associations whose role includes representing
the positioning of its members in the regulatory processes inherent in the business activity. The annual contributions paid to the above-mentioned organizations in theform of membership fees in 2023 totaled approximately
11 million euros, compared to 9.6 million euros in 2022(5). In
particular, in 2023 the three largest contributions in termsof overall amount concerned AELEC (Asociación de Empresas de Energía Eléctrica) in Spain, Confindustria andElettricità Futura in Italy(6).
The institutional dialog with the trade and employer associations in which Enel and its subsidiaries took part in
2022 concerned the support of regulatory and consultation processes, including also the following main topics:• development of energy policies: including, among other topics, the strategic outlook of the sector, energy
efficiency, the growth of renewables, smart grid development and energy costs(7);• increase of business competitiveness: including,among other topics, tax regulation, labor law issues andenvironmental policies(8).

(5) These amounts include the contributions paid by Enel SpA (including the main Italian companies) and by its foreign subsidiaries Endesa, Enel Américas andEnel Chile.
(6) Specifically: AELEC (formerly “UNESA”) 2 million euros; Confindustria 1.6 million euros; Elettricità Futura (formerly “Associazione Nazionale delle Imprese
Elettriche”) 0.75 million euros.
(7) The 2023 contribution was 6.7 million euros.
(8) The 2023 contribution was 4.3 million euros.

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Values and pillars of corporate ethics
2-15

2-16

2-23

2-26

3-3

205-1

205-2

205-3

405-1

406-1

408-1

409-1

412-1

412-2

413-1

415-1

A solid and dynamic ethical system, constantly oriented
towards implementing best practices on the national andinternational levels is the foundational element of the Enelsystem of values underpinning the Company’s operating
assets, and of relations entertained with all its key stakeholders. A system based on compliance programs, includ-ing the Code of Ethics, Human Rights Policy, Zero Tolerance of Corruption Plan (ZTC Plan), Enel Global Compliance Program, the Model pursuant to Italian Legislative
Decree 231/01, plus any other national compliance models adopted by Group companies in accordance with local
regulations.

Code of Ethics
In 2002, Enel adopted the Code of Ethics(9), which expresses its commitments and ethical responsibilities in
Company affairs and activities, regulating and harmonizing conduct according to standards based on the
maximum transparency and integrity towards all stakeholders. The Code of Ethics is applicable to the entire
Group, notwithstanding the cultural, social, and economic diversity between the various countries in which
Enel operates. Enel also requires all its main suppliers

and partners to adopt conduct in line with the Code’s
general principles.

More information is available on thewebsite: https://www.enel.com/investors/sustainability/
strategy-sustainable-progress/sound-governance/
basic-principles/code-of-ethics.

Whistleblowing channel and stakeholder reporting
Any violation (or suspected violation) of the Compliance
Programs, or behaviors, acts or omissions that damage
the integrity of the Company and constitute a significant
wrongdoing under the applicable regulations regarding whistleblowing, may be reported (even anonymously)
through a single Group-wide platform (“Ethics Point”) at
www.enel.ethicspoint.com(10).

Reports are handled according to a specific process set
out in the “Handling of Reports (Whistleblowing)”(11) Policy
and in Enel’s Human Rights Policy, under 3.1 “Stakeholder
reports”, as summarized below.

SENDINGA GRIEVANCEANALYZINGA GRIEVANCEACTING UPON AN
EFFECTIVE VIOLATIONMANAGEMENT AND
MONITORING

Maximum confidentiality
and anonymity is
guaranteed to every
stakeholder. Stakeholders
may send grievancethrough physical and online
channels

The Audit Function
receives and analyzes thegrievance and activates thenecessary verifications

Should a violation be
ascertained, the relevant
corporate functions define
the necessary actions andspecificaction plans,
if necessary

The Group has in place
an information system
to manage and monitor
grievance received andascertained violations(9) Last update: February 2021.
(10) The Ethics Channel can also be used to send reports regarding the Group’s commitments regarding human rights.
(11) The “Handling of Reports (Whistleblowing)” policy was updated in 2023 to incorporate the new national legislation (Legislative Decree 24/2023) implementing European Directive (EU) 2019/1937 on the protection of persons who report violations of EU law.

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2Enel’s commitment
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Stakeholder engagement andmateriality analysis

The key elements of the mechanism are:• protection of confidentiality;• protection against any form of retaliation against thereporter and other persons protected by law;
• protection against unfounded allegations made withmalice or gross negligence to harm or cause injury toindividuals;• uniformity of treatment at Group level, in accordancewith Company policy and local regulations.
The Audit Function receives and reviews the reports incompliance with Company policy and local regulations.
If, as a result of the report, the Function establishes a violation of the principles contained in the Compliance Programs or that affects the integrity of the Company, the rel-4

Performance 2023

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Appendixevant corporate structures shall implement the resulting
measures in line with the applicable national regulations.
The Audit Function also reports violations that haveemerged as a result of stakeholder reports:• to the Control and Risk Committee, the Chairman of theBoard of Directors and the Chief Executive Officer ofEnel SpA, who determine whether to report the mostsignificant cases to the Board of Directors;• to the corporate bodies of direct and indirect subsidiaries for issues within their remit.
The table below shows the total number of reports received through the whistleblowing platform and the number of violations determined.

KPI

UM

2023

2022

2021

2023-2022%

Reports received

no.

207

168

153

39

23.2

Violations related to incidents of(12):

no.

41

34

44

7

20.6

Conflict of interest/corruption

no.

7

10

8

-3

-30.0

Misappropriation

no.

9

5

5

4

80%

Labor practices

no.

18

14

27

4

28.6%

Community and society

no.

-

-

1

Other reasons

no.

7

5

3

(13)

In 2023, 207 reports were received, up 23.2% compared
to 2022 (168), mostly in Latin American countries; thenumber of established violations also follows the same
percentage trends on the total number of reports received compared to 2022. Specifically, the violations
established refer to employee and/or supplier behavior
that does not comply with policies for the protection ofpeople or internal procedures relating to:• “Conflict of interest/corruption” for the pursuit of personal interests or interests that harm the Company;• “Labor practices”, connected to inappropriate behavior by individual employees that is detrimental torespect for diversity and non-discrimination and the

240%

failure to comply with the internal procedures on
health and safety issues, principles approved by theGroup’s Human Rights Policy;• “Fraud/misappropriation” to the detriment of theCompany.
In addition to adopting disciplinary measures and/or
sanctions against the responsible parties, training andawareness initiatives by Enel Group companies continued during the year to promote behaviors that align with
the Code of Ethics and policies, including the events organized in the Latin American countries to disseminate aculture of integrity and ethics in the Company (“semana
etica”).

(12) Of the 207 reports received in 2023, 25 are undergoing review. During the course of 2023, the review of reports received in 2022 was completed; the number ofreports was therefore reclassified from 172 to 168, and the number of violations established for 2022 rose from 29 to 34. Of the five additional violations, one casewas due to a conflict of interest established in Brazil, one case of embezzlement in Chile, and three cases related to labor practices (one in Italy and two in Chile).
(13) In 2023, 6 violations were recorded relating to cases of discrimination at the workplace, specifically 5 cases of harassment.

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Human Rights Policy
Respect for human rights is a fundamental element forpursuing sustainable progress. Enel’s business model isbased on the generation of sustainable value, together
with its internal and external stakeholders, and on constant innovation, the pursuit of excellence and respect forhuman rights throughout the value chain. This translates
into rejecting practices such as modern slavery, forced labor and human trafficking, promoting diversity, inclusion,equal treatment and opportunity, and ensuring that people are treated with dignity and valued for their uniqueness, whether within the Company or along the value
chain in which the Group operates. The main international
standards of reference that inspire Enel’s commitment are
the United Nations “Protect, Respect and Remedy” framework set forth in the Guiding Principles on Business andHuman Rights and the OECD Guidelines for Multinational
Enterprises. This commitment is also clearly reflected in
the Group’s Human Rights Policy, drawn up and adopted
back in 2013. In 2021, this document was updated to take

into account the evolution of the international frameworksof reference and the corporate operational, organizationaland management processes. The document strengthensand expands the commitments already present in othercodes of conduct adopted by Enel, such as the Code of
Ethics, the Zero Tolerance of Corruption Plan and global compliance models. The update was approved by the
Board of Directors of Enel SpA, then adopted by the subsidiaries. Enel is committed to respecting these principles
in every Country in which it operates, respecting local
cultural, social and economic diversity and requiring thateach stakeholder adopt conduct in line with these principles, paying particular attention to high-risk or conflict-affected contexts.

For more information, see the“Managing human rights” chapter.

Enel Global Compliance Program (“EGCP”)
In September 2016, Enel approved the Global Compliance
Program, targeted toward the foreign companies in theGroup, which is a governance tool aimed at strengthening the Group’s ethical and professional commitment topreventing offences committed internationally that might
result in corporate criminal liability and reputational risks.
The identification of the relevant types of offences in the
Enel Global Compliance Program – which is associatedwith the provision of behavioral standards and areas tobe preventively monitored – is based on illicit conduct
generally considered as such in most parts of the countries, such as, for example, offences of corruption, crimes
against the public administration, fraudulent accounting,money laundering, offences committed in violation of theregulations on safety at work, environmental offences, etc.

Organizational and Management Model pursuant
to Italian Legislative Decree 231/01
Italian Legislative Decree 231 of June 8, 2001 introduced acompany administrative liability into the Italian legal system for certain types of offences committed by directors,
managers, or employees in the interest of or for the benefitof the companies concerned. Already in 2002, Enel – the280

Sustainability Report 2023

first in Italy – adopted an Organizational and Management
Model that meets the requirements of Legislative Decree
231/01 (Model 231). Since then, it has been constantly updated in line with the reference regulatory framework andcurrent organizational context.

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Appendix

Active and passive fight against corruption
3-3

205-1

205-2

205-3

In compliance with the 10th Global Compact principle,
according to which “companies are committed to combating corruption in all its forms, including extortion andbribery”, Enel intends to pursue its commitment to fighting
corruption in all its forms – whether direct or indirect – byapplying the principles expressed in the pillars of its Anti-Bribery Management System.
Enel’s Anti-Bribery Management System (ABMS) is basedon the Group’s commitment to fighting corruption by applying the criteria of transparency and conduct as set out
in the Zero Tolerance of Corruption Plan (ZTC Plan) andconfirmed in the Anti-Bribery Policy adopted in compliance with international standard ISO 37001:2016 (on anti-bribery management systems).
Together with the ZTC Plan, the pillars underpinning the
ABMS are:• the Code of Ethics;• Models to prevent the main criminal risks (for example,
bribery in relations with government bodies and among
private individuals, environmental offences, corporate
offences and, for Italian companies, manslaughter, serious personal injury or grievous bodily harm committed
in violation of the rules on the protection of occupational health and safety), as described by the applicableregulations on corporate responsibility in the various
countries where the Group operates (e.g., Organizational Model 231 for Italian companies, the “Risk Prevention Model/Integrity Program” for Group companies
in Spain and Latin America);• the Enel Global Compliance Program (“EGCP”), whichapplies to the Group’s non-Italian companies and supplements any compliance programs they adopt in compliance with local regulations.
The mentioned governance measures (in relation to whichfurther information can be found in the specific sectionof the website), together with the current body of procedures, outline an effective prevention system, which is an
integral part of the Group’s Internal Control System.

In 2017 Enel SpA was among the first companies in theworld to obtain certification of the conformity of its Anti-Bribery Management system to international standard
ISO 37001:2016 (“Anti-Bribery Management System”).
This certification was issued following an independent
verification process, carried out by a primary accredited
certification body, which was carried out in two separate
phases, aimed primarily at certifying the adequacy of thedesign of the Enel Anti-Bribery Management System (interms of governance, roles, and responsibilities, control
procedures, etc.), and secondarily at assessing the level ofapplication and effectiveness.
After Enel SpA obtained certification ISO 37001 for its anti-bribery management system, it gradually extended the37001 certification plan to the Group’s main Italian and foreign subsidiaries, guaranteeing maintenance of the certifications already obtained.
In 2023 the Audit Function(14) plan included an analysis of
the suitability of the Internal Control System for the Anti-Bribery Management System of all Group Business Linesand Holding Company Staff Functions; the specific audit
plans included checks to assess the risk and suitability ofthe design and operation of the controls, complementing
the spot checks required by the Compliance Programs
adopted by Group companies.
Based on the reports received through whistleblowing
platform, 7 cases of “Corruption/Conflict of interest” forthe pursuit of personal interests and/or to the detrimentof the Company(15) were established during the year; these
involved internal staff and/or contractors and resulted in 9
measures: 5 disciplinary actions against Enel people (e.g.,
dismissal, sanctions) and 4 sanctions against contractors(e.g., exclusion from tender proceedings, fines).
Following the checks as part of Company operations, anadditional 2 cases of “Corruption/Conflict of interest” forthe pursuit of private interest were identified, resulting in
the dismissal of 2 employees.

(14) Audits for the Anti-Bribery Management System ensure three-year coverage of the main corporate processes at risk.
(15) Of the 7 total cases of conflict of interest/corruption, 2 are tied to corruption issues, while the other 5 cases involve conflict of interest situations.

Sound governance281

Data protection
3-3

418-1

Protection and processing of personal data are an important challenge for Enel in the era of digitalization and market
globalization, and also a constant commitment to ensure
continuous improvement of the service supplied to thecustomers. In fact, Enel recognizes that personal data, as an
expression of an individual’s personality and identity, mustbe treated with due care and guarantees, whether they
concern customers, employees or suppliers, as also statedin the Group’s Human Rights Policy and Code of Ethics.
To respond to this challenge in line with the provisionsof the General Data Protection Regulation (EU 2016/679– “GDPR”), in 2017 Enel set up a specific unit within the
Legal Function (Data Protection Office) and appointed
the data supervisors (“Data Protection Officer” – DPO).
The DPOs are appointed based on their professional skills
and knowledge, and their ability to carry out the assigned
tasks in accordance with the principle of independence.
The Data Protection Office is structured as follows:• Data Protection Governance: a unit that monitors theevolution of data protection legislation and defines theGroup’s compliance. The office also carries out the roleof DPO in countries in which the creation of a local Data
Protection Office is not necessary;• Data Protection Staff Holding, Global Procurement
and Information and Communication Technology: aunit that promotes privacy by design from the phase ofprocess planning at the global level and ensures consistent development at the national level;• Data Protection Global Business Lines and Global Customer Operations: a unit that supports the Global Business Lines in compliance concerning data protection,and monitors the evolution of data protection certification mechanisms for products and services;• Country units: units that monitor the evolution of regulations on a local level and support the local BusinessLines as regards compliance related to data protection.
In 2020 country units were set up in Latin America (Argentina, Brazil, Chile, Colombia, Peru), alongside theEuropean area units already in place (Italy, Portugal, Romania, Spain).
The Enel Group has developed a global compliance program on personal data protection, founded on the principles of the main privacy regulations, including the GDPR,
the Brazilian law Lei Geral de Proteção de Dados Pessoais(“LGPD”), the California Consumer Privacy Act (“CCPA”), as
well as the local legislation of the countries in which theGroup operates. This compliance program is translated into
a global policy on personal data protection, which defines
the privacy principles applicable to all Group companies.
In particular, the Data Protection Office implements pro-

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cesses and activities in compliance with the indicationsof legislation concerning personal data protection and iscommitted to: drawing up data protection agreements andclauses; planning data governance and corporate policies;
providing consulting in line with the principles of privacy
by design and by default; ensuring adequate risk management and monitoring the consistency of data protection
policies within the organization; as well as performing periodic and regular training and awareness campaigns for
personnel on the main data protection issues.
Furthermore, the Audit Function includes specific activities in their work programs targeted toward evaluating
the Internal Control System on Data Protection Risk Management and on compliance with GDPR: analysis activities
are planned in various geographical areas, also those notsubject to GDPR, that aim to evaluate the safety measuresin systems that contain personal data, commercially-sensitive data and employees data managed in HR processes.
In order to guarantee full and effective protection of personal data, the Group has adopted a digital platform (Data
Protection Platform), which is able to ensure digital compliance, through the use of the following tools, based on
the size and complexity of Enel:• Processing register, which integrates the registers of

•
•

•

•

the data controller and the data processor on a single
platform, guaranteeing the dynamic mapping of theprocessing activities and their life cycle, as well as thefulfilment of the obligations required by the regulation.
For the Enel Group, this tool also represents an essential resource for designing and monitoring intra-groupdynamics;
Privacy by Design, which makes it possible to create
every new project, from the beginning, in line with theprinciples regarding privacy;
DPIA (Data Protection Impact Assessment), whichmakes it possible not only to perform an evaluation of
the effective risks for the freedom and rights of thedata subjects and to monitor the current risk of eachprocessing operation that is changed in light of the implementation of a remedy plan;
DTIA (Data Transfer Impact Assessment), which makes
it possible to evaluate the transfer risk that accounts
for the methods by means of which the data is transferred, as well as the regulatory aspects of the country
where this data is transferred;
Data Breach Management, which permits the structured and timely management of all possible incidents
that involve multiple companies and countries, and thepossibility to study these events in order to implement
common prevention solutions;1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis• Analytic, that, with the definition of precise KPI, makes it
possible to continuously analyze, compare and monitor
the data and processes processed by the companies.

With specific reference to relationships with its suppliers,
the Enel Group Code of Ethics and Human Rights Policy
expressly require suppliers to have a clear commitment
to respect the main obligations required by the applicable privacy regulation. Furthermore, a specific clausein the Group’s General Contract Conditions extends theprinciples of the Enel privacy policies to all suppliers, requiring them to be committed to handing personal datain compliance with the obligations imposed by industry

4

Performance 2023

5

Appendixlegislation. Therefore, Enel also undertakes to monitor all
third-party companies that may be in a position to use
customers’ personal data, for example for the provision ofsales services or customer satisfaction surveys.
In 2023, the Group’s companies handled 15,067 communications concerning personal data protection from customers, of which: (i) 913 in Romania, (ii) 6,256 in Iberia, (iii)
7,841 in Italy and (iv) 57 in Latin America.
Furthermore, the same companies collaborated with thenational authorities, receiving 171 requests for information and clarifications, of which: (i) 4 in Romania, (ii) 142 in
Iberia, (iii) 6 in Italy and (iv) 19 in Latin America.

Procedures started by competentsupervisory authorities
With specific reference to Italy, on March 8, 2021, thedata protection authority started a procedure, basedon some reports from consumers, for the adoption ofcorrective measures and sanctions against the Servizio
Elettrico Nazionale (SEN) for presumed violations of privacy regulations, in particular due to the performanceof undesired phone calls and the wrongful provision of
personal data (POD, supply address, tax code, etc.) tounauthorized parties for the promotional purposes ofthird parties. SEN has filed a defense brief disputing thecharges. On April 26, 2021 a hearing was held with thedata protection authority and a decision is pending.
Furthermore, on January 18, 2022, the data protection
authority issued an order against Enel Energia, imposing
a fine for approximately 26 million euros on the company for asserted violations of the privacy regulations. In
particular, the data protection authority criticized what it
saw as the inadequacy of Enel Energia’s surveillance andcontrol activities for the internal data processing processes, within the scope of telemarketing activities, aswell as the failed adoption of a comprehensive and effective action to contrast the undesired phone calls. The
penalty, which also imposed a series of prescriptive measures, was disputed by Enel Energia on February 9, 2022
before the Civil Court of Rome which, with an order dated
March 20, 2022, ordered the immediate suspension of its
effects. In a ruling published on February 13, 2023, Enel
Energia’s appeal was upheld in its entirety and, accordingly, the sanction measure was cancelled. On January
13, 2024, the grounds for the decision were published,on the basis of which the data protection authority may
consider a possible appeal of the ruling before the Courtof Cassation.
Finally, on 14 July 2023 the data protection authority instituted proceedings against Enel Energia SpA, in relation to the system of monitoring and control over thework of external agencies that carry out sales activities

in a “door-to-door” manner, and/or by means of telemarketing and teleselling, and relating to conduct that canbe traced back to a period of time ranging from 2015
to 2022. Enel Energia filed a defense brief disputing thecharges, and a hearing was held with the data protection
authority on October 4, 2023. At the conclusion of theinspection, on February 29, 2024 the data protection authority notified Enel Energia of the final measure by which
it imposed a fine of 79,107,101 euros on the latter.
In 2023, based on complaints presented by the data subjects in Spain, the local data protection authority started
63 administrative proceedings against Endesa Energía
SA, Endesa X Servicios SL, Edistribución Redes Digitales
SL and Energía XXI Comercializadora de Referencia SL.
Many of these proceedings have been dismissed and, inthe majority of the cases, the events that triggered thecomplaints were resolved thanks to out-of-court settlements.
During 2023, Endesa Energía was subject to two fines, one
in the amount of 56,000 euros and another of 6,100,000
euros. This latest sanction was related to a data security breach suffered on Endesa Energía’s systems dueto the publication of advertisements on Facebook that
promoted the sale of access credentials to Endesa’s applications. The aforementioned violation resulted in the
fraudulent conclusion of contracts without the consent
of the persons concerned. Therefore, Endesa Energía
filed an administrative appeal against the measure issued
by the data protection authority, before the National Supreme Court requesting the precautionary suspension of
the sanction. The final decision of the Court is currently
awaited.
In Portugal, in 2023, the local data protection authority initiated 75 proceedings against Endesa Energía SA– Sucursal Portugal as a result of sending direct market-

Sound governance283

ing communications to data subjects without their valid
prior consent. Endesa presented their defense against
these proceedings and is currently waiting for the decision of the local data protection authority. With regard toprior proceedings related to marketing communications
made in 2019, 2020 and 2021, for which Endesa has already presented its defense, in 2023 the data protection
authority issued 3 rulings, for one of which it ordered
the dismissal of the proceedings, while for the others it
imposed sanctions with an overall value of 12,500 euros.
Furthermore, it should be noted that one of the final decisions that led to the imposition of a fine (in the amountof 5,000 euros) was challenged by Endesa. In fact, thecompany was sanctioned for having made a direct marketing call without the consent of the data subject, but
the number from which the call was made was not anumber belonging to Endesa or one of its data controllers.
In addition, with reference to the second decision, afine of 7,500 euros was imposed. In particular, Endesa
had been accused of committing two administrative infringements, but the Comissão Nacional de Proteção de
Dados (“CNPD”) considered this to be a single administrative infringement, carried out on a continuous basis,and therefore decided to impose a single penalty.

In Romania, during July 2022, and following an investigation, the local data protection authority issued a penalty
of 49,337 lei (10,000 euros) against Enel Energie Muntenia SA for violation of Article 32 of GDPR. The company
has challenged this penalty and is still waiting for the final
decision of the data protection authority.
In Colombia, in September 2023, the Colombian dataprotection authority notified Resolution No. 48205,
through which it pronounced two administrative orders
following four security incidents (occurring in 2021-2022)
that could have compromised the personal information
contained within Market/Enel X’s databases. On the basis of the reported security incidents and the measurestaken to manage them, the local data protection authority deemed it necessary to analyze not only the controlsthat the company had put in place, but also the security
measures, which were necessary to determine the adequacy and effectiveness of the personal data protection
standards and to check whether it was necessary to implement additional security measures to those already inplace.
On December 4, 2023, Enel Colombia provided feedback
on all the points raised. To date, however, the data protection authority has not ruled on them.

Data breaches
Regarding data breaches, during 2023, seven violations of
personal data were recorded within the scope of the EnelGroup.
In particular, in Italy, the company Enel Energia SpA notified
the data protection authority of a breach, which occurredin March 2023, concerning personal data on the company’s
Customer Relationship Management (“CRM”). Specifically, several SEPs (Spazio Enel Partner, i.e., shops open to the
public managed by external partners) reported to Enel Energia that they had been contacted on the landline number of
their shop by people pretending to be Enel Energia operators
and asking them to install a new app for security reasons, andto provide their Enel Energia CRM access credentials for thispurpose. The latter immediately alerted all partners in its sales
network, advising them to be very careful if they received
similar communications and requests. However, some of thepartners’ operators had already followed up the fraudulent
message and, in eight cases, credentials had been provided.
These credentials were found to have been used by unknown
persons to view the data of some 679 individuals, amongwhom customers, potential customers and customer referrals. However, further analysis by Enel Energia showed that noabnormal use of the personal data displayed had occurred.

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In Romania, during 2023 two data breaches were recorded. In particular, a limited amount of personal data wasdisplayed in the private section of the e-Distribuție website. Through a link with a hidden object, some users of
the website were able to access a limited set of data ofother users. As far as is known, apart from the person who
reported the vulnerability, no one else took advantage of it.
Based on the investigations carried out by the Company, the data illegally accessed belonged to customers of
e-Distribuție Muntenia and e-Distribuție Dobrogea. Since
the person who reported the vulnerability also reported it
to the DPA, notification of the incident was deemed appropriate, even though said incident was not consideredserious and no impact on the individuals concerned was
detected.
The vulnerability was fixed in less than 24 hours from themoment the owners became aware of it.
In Spain, during 2023, Edistribución Redes Digitales SL(“Edistribución”) notified the Spanish data protection authority (AEPD) of two personal data breaches suffered byits customers.
The first, reported on January 23, 2023, concerns an accidental exposure of some Edistribución customer data on

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the public repository “Github” by an engineer of a supplier of the company who used this repository temporarily inorder to make a copy of the source code of the Exabeat
application. The measures taken include resetting the credentials identified within the FTP server within the Exabeat
application and analyzing the access logs to the FTP server.
The above analysis showed that there was no evidence ofaccess to any personal data processed by the FTP server.
On January 23, 2024, the AEPD dismissed the proceedings
initiated as a result of the “Github” data breach, findingthat Edistribución had acted diligently once it becameaware of the security breach, demonstrating that themeasures taken after the incident were adequate.
As for the second breach, it originated neither from a leaknor from an incident or unauthorized access to Edistribución’s systems.
In particular, an Internet forum was intercepted to publish the sale of data of “Endesa customers”, together withan Excel file published on Google Docs that contained,
among various fields, one relating to the supply of the
distribution company in which “Endesa Distribución Eléctrica SL” appeared. Once these data and those containedin Edistribución’s systems were analyzed, it emerged thatthe published data did not come from Edistribución itself.
However, although Edistribución did not suffer any data
breaches, it considered it appropriate to inform the AEPD,
given the media impact of the incident.

4

Performance 2023

5

Appendix

In Portugal, in May 2023, the company Aon (one of Endesa’s data controllers that processes the personal data of
its employees) was made aware of a zero-day vulnerability concerning a third-party provider’s application called“MOVEit Transfer”, which Aon was using for file sharing.
Upon learning of this vulnerability, Aon immediately
launched an investigation, which established that an unauthorized third party had accessed the “MOVEit Transfer”
application/server within Aon, and that the data containedin that application had been downloaded and exfiltrated.
Among the breached data were those of Endesa employees with whom Aon was dealing. Given the type of personal data breached (first name, last name, e-mail, address,
tax code, date of birth, international bank account number– N.B. not all IBANs of the data subjects were disclosed),Endesa notified the data breach to the Portuguese dataprotection authority and the various stakeholders.
In Colombia, the local data protection authority was notified of a personal data breach, consisting of a ransomware
attack (of the “RansomHouse” type) affecting the websites
and activities of an employee healthcare provider. Therefore, Enel Colombia intervened through containment actions, contract management monitoring, and multidisciplinary analyses in the areas of contract law, personal data,
cyber security, and information security.

Sound governance285

MANAGING
HUMAN RIGHTS
2-12

2-23

2-24

2-25

2-26

3-3

407-1

408-1

409-1

411-1

413-1

413-2

418-1

HUMAN RIGHTS MANAGEMENTDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLAR

MATERIAL TOPICS:

HUMAN RIGHTS• Climate change• Sustainable supply chain• Customer centricity• Engaging local and global
communities• Economic value creation• Water resources management• Preservation of biodiversity andecosystems• Air, water and soil quality• Waste• Governance and advocacy for natureand climate• Health and safety• Digital transformation

The International Charter of Human Rights together with
the International Labour Organization (ILO) conventions
underlying the Tripartite Declaration of Principles on
Multinational Enterprises and Social Policy define the human rights that Enel applies to business practice.
Enel’s commitment also takes into account:• the 10 principles of the Global Compact, to which it
signed up as an active member in 2004;• the letter of commitment, signed by Enel in 2019, in

which the United Nations called on companies aroundthe world to commit to a just transition and the creationof decent jobs;• the United Nations’ “Protect, Respect and Remedy”
framework set forth in the Guiding Principles on Business and Human Rights;• the OECD Guidelines for Multinational Enterprises.
Enel’s human rights management system is based precisely on the three pillars of the UN Guiding Principles:

ENEL’S COMMITMENT

THE DUE DILIGENCE PROCESSACCESS TO REMEDY

It includes:
the strategic approach to human rights
in business operations

It includes:
identification of salient issues

It includes:
Enel’s commitment to provide anadequate remedy in the event of
impacts•• Enel’s public commitment: the Human•

286

SUSTAINABLE DEVELOPMENTGOALS (SDGs)

Rights Policy

embedding of the commitment into:• operating policies and procedures• training• governance

Sustainability Report 2023•
• gap identification and definition ofpotential improvement plans• stakeholder relations (workplace,procurement processes and relations
with business partners, communities,
customers and cross-cutting andspecific topics)•• grievance channels information• redressing in legacy projects

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s commitment
2-24

The strategic approach to human rights in business activities
Protection of the environment and natural resources, actions to combat climate change, and contribution to sustainable economic development are strategic factors in
the planning and development of Enel’s activities, alongwith its commitment to decarbonization and electrification processes, in line with the Paris Agreement and theUnited Nations Sustainable Development Goals (SDGs).
Mitigating the effects of changes in the climate and naturecannot disregard the social impacts. For this reason, Enelpromotes a just transition.

Indeed, respecting human rights in business practiceis the basis for sustainable progress, because it enables
increased talent attraction and retention, strengthened
business resilience, meeting customer and civil society
expectations, improved access to financial markets, andcontributes to a transition path founded on constructive
dialogue and active participation, both in the definition of
enabling regulatory frameworks and in multi-stakeholder
initiatives that promote system-wide advocacy actions.

Enel’s public commitment: the Human Rights Policy
The Enel Group Board of Directors first adopted a Human
Rights Policy in 2013. It was then updated in 2021 to take
into account the evolution of international frameworks
and corporate operational, organizational and management processes.
Its content leverages commitments in several othercodes of conduct, such as the Code of Ethics (adopted
as early as 2002), the Zero Tolerance of Corruption Plan,and global compliance models, reinforcing and expanding on them.
There are 12 policy principles, defined in line with relevant policies, regulations, conventions and frameworks,
split into two macro-themes:• employment practices;• relations with communities and society.
In particular, they establish the rejection of practices
such as modern slavery, forced labor, and human trafficking, to name a few, and a Enel’s commitment to promoting diversity, inclusion, equal treatment and opportunity,
guaranteeing that people are treated fairly and valued fortheir uniqueness, as well as focusing on protection of theenvironment since a safe, clean, healthy and sustainable
environment is integral to the full enjoyment of a wide
range of human rights.
The principles have been identified based on their relevance to the Group’s business activities and relationships, and are the result of a consultation with relevant
stakeholders(1) based on the criteria listed in the “UN
Global Compact Guide for business: How to Develop a
Human Rights Policy”. Indeed, constantly listening to andconsidering the perspectives of relevant stakeholders in(1)

internal decision-making is an integral part of the commitment to human rights.

For further information see the chapters“Stakeholder engagement and materiality
analysis” and “Engaging communities”.

In managing human rights, it is important to work withleading organizations to develop, among other things, innovative and evolved standards of responsible conduct.
In particular, in 2023 Enel participated:• as a member of Eurelectric, at European utility sector
level, to the process relating to the development of thedraft proposal of the Corporate Sustainability Due Diligence Directive (CSDDD);• to United Nations Global Compacts working groups, including the Just Transition Think Lab, an initiative thatbrings together leading companies on the issue globally, developed in collaboration with the International
Labour Organization (ILO) and the International Trade
Union Confederation (ITUC), and the Business & Human
Rights Accelerator, a program that aims to train andstimulate companies in the transition from commitment to action on business and human rights. In addition to its global participation, the Group took part inlocal working groups in Spain, Colombia, and Peru;• to the Business Commission to Tackle Inequality(BCTI), promoted by the World Business Council for
Sustainable Development (WBCSD);

People who work within the organization, as well as suppliers, human rights experts, think tanks, NGOs, other companies.

Managing human rights287

• in the CSR Europe Materials Leadership Hub, a select-• in Solar Power Europe, the European solar photovoltaic

ed group of members of CSR Europe;industry association.

Business Commission to Tackle
Inequality (BCTI)

strategies. In 2023, Enel participated in the following
working groups: 1. Access to essential products andservices; 2. Diversity, equity and inclusion; 3. Promotionof a culture of good health and well-being in theworking environment; 4. Promotion of a ‘living wage’.
The Group also contributed to the launch of the
Flagship Report “Tackling Inequality: An Agenda for
Business Action’’, which outlines a common agenda forthe private sector, providing 10 recommendations foraddressing inequality.

Business Commission to Tackle Inequality (BCTI) is an
initiative spearheaded by the World Business Council for
Sustainable Development (WBCSD) that brings together
business leaders and key stakeholders with the goal of
stimulating greater levels of attention, investment, andaction by businesses in tackling inequality by bringing
the issue to the forefront of corporate agendas andOperating policies and procedures
A key element of the prevention and mitigation of negative impacts on human rights, as well as the promotion ofdecent work, inclusive economic growth and sustainable
development, is the integration of Enel’s commitment into

corporate operating processes.
The following is a summary representation of the main
documents (internal and public) and thematic frameworks
in which Enel’s Human Rights Policy is reflected.

RIGHTS POL
ICY
MAN
HU
Health and safety

Whistleblowing policy

Extra Checking on SiteXTA

STRATEGY

Stop Work

Cyber security

Diversity and inclusion

Physical and digitalaccessibility

CH

Remuneration

AR
TE

O
N

Workplace harassment

S
R OF THE PER

Environment and biodiversity

Code of Ethics
Zero Tolerance of Corruption Plan
Anti-corruption
Global compliance programs

Enel people

288

Sustainability Report 2023

Suppliers

Communities

Customers

Internal and external policies
Thematic frameworks

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Security and human rights
3-3

410-1

Enel manages security services to protect the Company’s
personnel and property through a dedicated global function (Security) reporting directly to the Chief Executive Officer as of late 2023.
The Security Function acts in coordination with the equivalent Security Functions in the different countries of operation. These carry out information gathering and analysis
activities in order to map potential security risks and define
appropriate actions for their management, also in cooperation with external parties, such as relevant institutions andother critical infrastructure operators, in line with nationallaws and applicable international norms and standards andin line with the Voluntary Principles on Security and Humanrights (principle 2.2.3 of the Human Rights Policy).
Security services providers are selected following theoverall qualification and procurement process, and monitored during the life of the contract (see chapter “Sustainable supply chain”). In particular, for suppliers falling into
the “high reputational risk” category, additional checks
established in a specific policy (Counterparty Analysis) are
carried out in order to reduce and mitigate the related actual or potential risks.
Finally, the Security Function also ensures the organization of the protection services provided for Enel personnel traveling to high-risk countries, in accordance with thePeople Security policy.

Training
2-29
The training and awareness raising processes for both Enelpeople and commercial partners are fundamental for integrating respect for human rights into corporate activities.
Specific training activities are devised every year to ensurethat anyone who works with the Group is aware of the role
they play in ensuring respect for human rights in carryingout their activities.
Various forms of training are available with different content to address every need, including:• courses on environmental protection;• courses on occupational health and safety;• courses on diversity and inclusion;• courses on community relations;• courses on anti-corruption;• digital training courses on issues closely related to human rights;• training initiatives on best practices closely related tohuman rights.
In 2023, 93% of Enel people took part in sustainability training courses, a higher figure than was recorded in
2022 (84%). A total of 2 million hours of training were provided, with a per capita average of 32 hours.

Specifically, around 9,000 hours of training specifically onhuman rights were provided, plus around 11,000 hours of
training on the contents of the Group Code of Ethics.
Training also includes specific communication initiatives
intended for internal and external stakeholders to foster aproper understanding of the commitment made throughthe Human Rights Policy. Activities carried out in 2023, forexample, included training sessions on human rights inbusiness practice for people working in the Group’s Procurement area and in-depth sessions on the relationshipbetween the fight against climate change and social impacts (just transition) intended for colleagues in the Renewables Development Business Line, also organized withthe support of some Italian universities. In-depth meetings
were also held with key suppliers belonging to core product categories.

See the “Sustainable supply chain”
chapter for further details.

Managing human rights289

GovernanceCompliance with Enel’s commitment to human rights is
an integral part of relevant corporate decision-making
processes. The Group operates in accordance with anorganizational and corporate governance model, basedon principles of transparency and accountability, which
defines the specific tasks and responsibilities of the main
corporate governance bodies. Specifically:• through the Control and Risk Committee and the Corporate Governance and Sustainability Committee,
which carry out preparatory work aimed at making proposals and providing advice, the Board of Directors is
responsible for examining the main company rules andprocedures of relevance with respect to stakeholders
and connected to the Internal Control and Risk Management System. These include the Human Rights
Policy, the Code of Ethics, the Zero Tolerance of Corruption Plan, and global compliance programs. Bothcommittees consider any subsequent amendments oradditions to be submitted to the Board for approval toincorporate international best practices or changes inexisting laws and regulations;• the Sustainability Planning, Stakeholders and Human
Rights unit, is responsible for:– managing the position on human rights and ensuring that it is properly reflected in internal and external
communication activities, in collaboration with relevant business areas;– integrating respect of the principles included in the
Human Rights Policy into business processes, as well
as planning and coordinating due diligence activities
on the related management system, jointly with therelevant business areas;– reporting to the Control and Risk Committee and the
Corporate Governance and Sustainability Committee
on the implementation of the due diligence process;– reporting on how Enel respects human rights commitments.

The due diligence process
2-23

E

DU

L
DI

I

NC
GE

A
ST

KE

E ON HUMALDHOE R E N GAG

EM

N

EN

Assessment of theperceived risk

Identification of potential gaps

Improvement plans

Implementation of actions
and monitoring

AC

CES

S TO R E M

ED

Y

RI
T

G
TS

290 Sustainability Report 2023

Specifically, activities carried out in three-year cycles andinvolving both internal Company structures and external
human rights experts and key stakeholders, include:H

As required by the United Nations Guiding Principles on
Business and Human Rights and the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Business Conduct, Enelhas defined a process for assessing the robustness of its
human rights management system, which has been codified in an internal procedure applied globally.
The process covers the entire value chain in the different
countries in which the Group operates and is aimed atverifying both to what extent processes and procedures
are in line with the requirements of the United Nations
Guiding Principles and how much respect of the principles of the Human Rights policy is integrated into businesspractice. Through this process, 100% of the adopted operational policies and procedures are evaluated in order
to identify any risks in the management of direct and indirect operations related to the entire value chain and theestablishment of new business relationships (e.g., acquisitions, mergers, joint ventures, etc.). Based on the results
obtained, if necessary, an improvement plan is defined.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

In 2023 a new cycle(2) was launched which led to achieving
perceived risk assessment and identification of potential
gaps at country level. Preliminary results are currently being analyzed to assess if any improvement plan is needed.
With respect to Holding and Global Functions processes,
the activity will be launched later once the simplification of
corporate processes triggered by the undergoing organizational changes will have come to an end.
In order to make the analysis process even more robust, the
new cycle makes use of an internally developed applicationthat manages the collection, aggregation and processing

Due diligence process | Previous cycle
highlights(2020-2022)
The 2020-2022 due diligence cycle showed thatthe management system is robust which means
that, according to the definition of the UN Guiding
Principles, management of salient issues if effective.
The areas for improvement identified led to thedevelopment of a plan consisting of approximately
170 actions of varying magnitude (covering 100%of operations and sites), such as enhancing humanrights training activities and activities related todisability issues of which more than 80% wereachieved by the end of the cycle.

4

Performance 2023

5

Appendixof information related to the assessment of perceived risk
and the identification of potential gaps. The adoption of adigital system ensures greater traceability of the flow of
information and of approval process, automatic consolidation of the information collected as well as accuracy of theresults, since it reduces manual collection processing andvalidation.
Below is a summary of the main preliminary results of theprevious due diligence cycle (2020-2022) followed by the
results for the first stages of the new cycle carried out in
2023.

Below are some examples:• Italy: inclusion of the link between the Human
Rights Policy and business development
procedures in Enel Grids’ local operations;• Brazil: definition of an operating instruction inorder to assess management of human rights ofpartners and sub-tier suppliers;• Chile: (i) development of a communication andawareness campaign on the Human Rights Policy
targeting all relevant stakeholders; (ii) making thepolicy available to all relevant stakeholders, with aparticular focus on those who are unable to accessit through digital means (e.g., indigenous peoples).

Assessment of perceived risk (identification of salient issues)
Identification of the salient issues relating to human rights andtheir potential impacts allow for activities to be prioritized andthe perspectives of affected stakeholders to be considered.
The assessment is carried out in the countries of presence of the Group and involves relevant stakeholders andexperts from various fields, including civil society and academic institutions. Specifically, consultations were heldwith direct and indirect workers, civil society representatives from local communities and indigenous and tribal
peoples, trade unions, local institutions, businesses andtrade associations, and customers. Furthermore, regularstakeholder and sustainability experts engagement activities are planned with the aim of identifying priority issues
and material topics, i.e., the Company’s most significant
impacts on the economy, environment, and people, including its impact on human rights.

See the chapter “Stakeholder
engagement and materiality analysis”(2) Assessment in the new cycle is based on the 2021 update of the Human Rights policy.

Managing human rights

291

The perceived risk is calculated through the combination of
the severity and probability of a potential violation of humanrights(3).
Below are the preliminary results for 2023:• corruption (integrity: zero tolerance of corruption), environment, diversity and non-discrimination, community
relations, and privacy are among the most salient issues(“to be monitored”). In particular, privacy has been identified as the most salient issue by stakeholders belonging
to North America;• labor practices (freedom of association and collective

bargaining, rejection of forced labor and child labor, fairand favorable working conditions, and health, safety, andwelfare in the workplace) and potential impacts from
customer-facing communication activities were ranked
lowest in terms of risk (“acceptable level’’).

5.00

Rejection of forced or compulsory labor
Rejection of child labor
Respect for diversity
and non-discrimination

4.00

Freedom of associationand collective bargaining
Health and Safety and well-being
Just and favorable working conditions

2.00

Environment

PROBABILITY

3.00

Community
Integrity: zero tolerance of corruption
PrivacyCommunications

1.00

SERIOUSNESS
0.00
1.00

2.00

3.00

New fields of analysis have been introduced in this new cycle
in line with the 2021 update of the Human Rights policy andthe evolution of the relevant ESG context.
Key differences:• strengthening of the analysis related to principle 2.1.2“Respect for Diversity and Non-Discrimination”, througha greater granularity of the criteria underlying a possible violation of this principle;• expansion of the themes underlying principle 2.1.4“Health, safety and well-being”, which now includes thedimension related to mental and physical well-being
and work-life integration;

4.00

5.00

• expansion of the themes underlying the principles in-cluded in the “Community and society” section and, inparticular, a reference to the following principles:– “Environment” (2.2.1), with the inclusion of a link between environment and human rights and aspects
related to climate transition plans;– “Respect for the rights of indigenous and tribal peoples” (2.2.4), in accordance with ILO Convention no. 169;
– “Privacy” (2.2.6) and “Communication” (2.2.7), keeping
the two principles separate and strengthening customer protection aspects.

(3) Risks are classified based on the assessment scale: acceptable risk (minimum level), risk to monitor, high-priority risk, high risk (maximum level).

292

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Gap identification and definition of potential
improvement plans• public commitment to respect human rights;• adoption of human rights due diligence process;• preparation of a plan of action to remedy any gaps

Besides the identification of salient issues, the management
system includes the identification of potential gaps aimed
at assessing the operating and risk monitoring processes
ensuring the proper integration of human rights in businesspractice and identifying potential area for improvement.
This process is divided into two segments:
1. assessment of the general framework of operatingprocedures and processes based on four parameters
defined by the United Nations Guiding Principles:

Human Rights Policy
Principles

identified by the due diligence process;• adaptation to match local context and regulations.

2. assessment of the level of integration of the Human Rights
policy principles into business practice.
Below, a summary of key preliminary results of 2023 assessment:

SDG

System to protect

Priority for action

RobustNone

RobustNone

RobustLow

RobustNone

RobustNone

RobustNone

RobustLow

Labor practices
Rejection of forced or compulsory labor

8

Rejection of child labor

8

Respect for diversity and nondiscrimination.

5

Freedom of association and collective
bargaining

8

Health, safety and well-being

3

8

Fair and favorable working conditions

3

4

8

Environment

11

12

13

14

15

Respecting the rights of communities

1

3

4

5

7

8

9

10

11

13

17

RobustLow

Respecting the rights of local communities

1

3

4

5

7

8

9

10

11

13

17

RobustLow

Respecting the rights of indigenous andtribal peoples

1

3

4

5

7

8

9

10

11

13

17

RobustLow

Integrity: zero tolerance of corruption

16

RobustLow

Privacy

17

RobustLow

Communications

5

Robust

None

16

8

10 16

Community and society

Reference scales of performance values:• Scale of the system to protect: Robust (75%-100%); Good (50%-74%); Sufficient (25%-49%); Needs improvement (0%-24%).
• Scale of priorities for action: none; very low; low; medium; high; very high.

In line with the findings of the previous cycle, the management system in place to mitigate potential impacts isrobust and enable the salient issues identified to be adequately managed, which, based on the definitions of theclassification included in the UN Guiding Principles, meansthat the salient issues management system is effective.
This is also borne out by the fact that, despite the greater

granularity of the assessed content as well as the additionof new content, the results of the assessment were better. This is the case, for example, with the health and safety, that now includes mental and physical well-being andwork-life integration and that improved from low priority
in the previous cycle to no priority.

Managing human rights

293

Stakeholder relations: human rights in practice
Enel’s pledge to respect human rights is the guiding principle that permeates all its activities and it is fully integrated into its corporate purpose and values, since it belongs
to the territory, and it is an essential element in the lives ofpeople, businesses, and society at large. With its commit-

ment Enel is striving for sustainable progress, to make its
company and the communities in which it operates more
prosperous, more inclusive and more resilient, withoutleaving anyone behind.

Human Rights Content Index
ISSUE PRINCIPLE
Rejectionof forced orcompulsory laborand child labor

DESCRIPTION
Reject of the use of any form offorced or compulsory labor, of
any form of slavery and humantrafficking and of child labor

ASSOCIATED
SDGs

INTERNATIONAL REFERENCE
STANDARDS

2023 SUSTAINABILITYREPORT REFERENCE• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Convention 29• United Nations Global Compact
principles

Zero emissions ambition and justtransition
Enel people
Sustainable supply chain
Innovation
Circular economy
Sound governance

EMPLOYMENT PRACTICESManaging human rights
Respect for
Diversity, inclusion, equal treatment
diversity and non- and opportunity, working conditions
discrimination
respectful of personal dignity,
creation of a working environment
where people are treated fairly,
valued for their uniqueness andnot discriminated or subject toharassment, commitment to a justenergy transition for everyone andattention to clients requests• United Nations Guiding Principles
on Business and Human Rights

Stakeholder engagement and• ILO Conventions 100, 111, 190

Enel people• United Nations Global Compact
principles

Sustainable supply chain

Freedom of
associationand collective
bargaining

Freedom to form or take part inorganizations aimed at defending
and promoting the rights ofpeople, respect of their rightto be represented by unions orother forms of representation,collective bargaining as the favored
instrument for setting contractual
conditions and regulating relations
between management and unions• United Nations Guiding Principles
on Business and Human Rights

Health, safety and Protection of health, safety andwell-being
psychological, relational, andphysical well-being of individuals;
dissemination of such culture toensure that workplaces are hazardfree and to promote behaviors
oriented towards work-life
integration• United Nations Guiding Principles
on Business and Human Rights

materiality analysis• OECD Guidelines for Multinational Zero emissions ambition and justEnterprises
transition

Engaging communities
Customer centricity
Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Conventions 87, 98, 154• United Nations Global Compact
principles

Zero emissions ambition and justtransition
Enel people
Sustainable supply chain
Engaging communities
Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Conventions 155, 156, 187• United Nations Global Compact
principles

Zero emissions ambition and justtransition
Enel people
Sustainable supply chain
Engaging communities
Health and safety of people

Just andfavourable
working
conditions

Protection of the right to conditions
that respect the health, safety, wellbeing and dignity of individuals,
maximum working hours, daily
and weekly rest periods andannual period of paid leave, andfair remuneration as well as equalpay for equal work for men andwomen, minimum compensation,and professional orientation andtraining

294 Sustainability Report 2023

• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Conventions 100, 131, 155,
156, 187

Zero emissions ambition and justtransition• United Nations Global Compact
principles

Enel people
Sustainable supply chain
Engaging communities

Letter to stakeholders

ISSUE PRINCIPLE
Environment

2
Enel’s commitment
to sustainable development

DESCRIPTION
Protection of the environmentand biodiversity, climate action,and contribution to a sustainableeconomic development

3

Stakeholder engagement andmateriality analysis

ASSOCIATED
SDGs

4

Performance 2023

5

Appendix

INTERNATIONAL REFERENCE
STANDARDS

2023 SUSTAINABILITYREPORT REFERENCE• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• United Nations Global Compact
Zero emissions ambition and justprinciples"transition
Enel people
Roadmap towards natural capitalconservation
Sustainable supply chain
Engaging communities
Circular economy
Innovation

COMMUNITIES AND SOCIETY

1

Respecting
the rights ofcommunities

Responsible community relations
based on the assumption that
individual conditions, economic
and social development andgeneral well-being of collectivity
are strictly connected. This includes
conducting capital expenditure in asustainable manner and promoting
cultural, social and economic
initiatives for affected local andnational communities to advancesocial inclusion through education,
training and access to energy.
Commitment to ensure that
products and services are designed
to be accessible for all

Respecting therights of local
communities

Commitment to respecting therights of local communities andto contribute to their economic
and social growth also throughcollaborations with suppliers,
contractors and partners that
contribute to the social andeconomic development of thecommunities where Enel operates.
This goes also through: promoting
free, prior, and informed
consultation activities andimplementing social inclusion
actions (local manpower, healthand safety training, development oflocal projects – also in partnershipwith local organizations); taking into
due account the environmental
and social impact in the designingand construction of Group
infrastructure projects; commitment
to ensuring that private security
forces protecting Group’s personnel
and assets in operating areas
act in a manner consistent withthe applicable national laws andinternational rules and standards

Respecting
the rights ofindigenous andtribal peoples

Specific commitment to pay
particular attention to the mostvulnerable communities, suchas indigenous and tribal ones, incase of developing new projects
and to respect the United Nations
Declaration of the rights ofIndigenous Peoples

Integrity: zerotolerance ofcorruption

Reject of corruption in all its forms,
both direct and indirect, since itis one of the factors undermining
institutions and democracy, ethicalvalues and justice, as well as thewell-being and development ofsociety• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Convention 169
Zero emissions ambition and justtransition• United Nations Global Compact
principles
Enel people
Roadmap towards natural capitalconservation
Sustainable supply chain
Engaging communities
Customer centricity
Circular economy
Innovation• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• United Nations Global Compact
Sound governanceprinciples

Managing human rights

295

ISSUE PRINCIPLECOMMUNITIES AND SOCIETY

PrivacyCommunications

INTERNATIONAL REFERENCE
STANDARDS

2023 SUSTAINABILITYREPORT REFERENCE

Respect of the confidentiality andright to privacy of our stakeholders
and to use correctly informationand data relating to the people
working in our organization,
to our customers and to any
other stakeholder; processingof data in compliance with thefundamental rights and the rights
and principles recognized in law,notably respect for private andfamily life, home location details
and communications, personal dataprotection, freedom of thought,
conscience and religion, freedom of
expression and information• United Nations Guiding Principles
on Business and Human Rights

Enel’s commitment to sustainable
development

Commitment to ensure that
institutional and commercial
communications are nondiscriminatory and are respectfulof different cultures, while also
not adversely affecting the mostvulnerable audiences, such as
children and the elderly• United Nations Guiding Principles
on Business and Human Rights

DESCRIPTIONASSOCIATED
SDGs• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Recommendation “Protection Enel peopleof workers’ personal data”
Sustainable supply chain• United Nations Global Compact
Sound governanceprinciples"
Customer centricity

Enel’s commitment to sustainable
development• OECD Guidelines for Multinational Stakeholder engagement andEnterprises
materiality analysis• ILO Recommendation “Protection Sustainable supply chainof workers’ personal data”
Engaging communities• United Nations Global Compact
Customer centricity
principles"• United Nations Guiding Principles
on Business and Human Rights• OECD Guidelines for Multinational
Enterprises• United Nations Global Compact
principles

Publiccommitment

Adoption of a Human Rights Policy• United Nations Guiding Principles
on Business and Human Rights• OECD Guidelines for Multinational
Enterprises

Sound governanceManaging human rights• United Nations Global Compact
principles

HUMAN RIGHTS GOVERNANCE

Due diligence ofthe management
systemIdentification, prevention andmitigation of the potential negative
effects caused by business
operations
Reporting to Control and Risk
Committee and to Corporate
Governance and Sustainability
Committee about theimplementation of the due
diligence process

Access to remedy Access to specific grievancechannels also at local level• United Nations Guiding Principles
on Business and Human Rights• OECD Guidelines for Multinational
Enterprises

Sound governanceManaging human rights• OECD Guidance for Responsible
Business Conduct"• United Nations Guiding Principles
on Business and Human Rights• OECD Guidelines for Multinational
Enterprises

Sound governanceManaging human rights• OECD Guidance for Responsible
Business Conduct• United National Global Compact
principles
Transparency

Annual reporting, within the
Sustainability Report, of theperformance on the commitments
undertaken through the humanrights policy

296 Sustainability Report 2023

• United Nations Guiding Principles
on Business and Human Rights• OECD Guidelines for Multinational
Enterprises• OECD Guidance for Responsible
Business Conduct

Sound governanceManaging human rights

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2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

4

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Appendix

The workplace
2-29
Enel is committed to respecting and promoting internationally recognized workers’ rights in all countries where
it operates. This means rejecting practices such as modern slavery, forced labor and human trafficking, promoting diversity, inclusion, equal treatment and opportunity,and ensuring that people are treated with dignity and val-ued for their uniqueness, whether within the Company oralong the value chain in which it operates.

For further details, see the chapter “Enel people”.

Training and people empowerment | Upskilling and reskilling(Human Rights Policy, “Employment practices”, principle 2.1.5 “Just and favourable working conditions”)
Enel believes in the importance of professional orientation and training for the development of its people andtheir skills, even the more so in situations impacted by
the energy transition that prompt requalification and enhancement of potential by way of reskilling and upskilling
programs to foster a just transition. Facing the undergoing rapid evolutions means setting up an inclusive path in
the workplace, which aims to enhance the human beingby making him or her the protagonist of an ecosystem inwhich lifelong learning, well-being, productivity and safety
can strengthen each other, contributing to maximum personal fulfilment, with a view to ever greater centrality.

For further details, see the chapter “Enel people”.

Inclusion(Human Rights Policy, “Employment practices”, principle 2.1.2 “Respect for diversity and non-discrimination”)
Enel promotes the principles of diversity, inclusion, equal
treatment and opportunity and is committed to guaranteeing the right to working conditions that are respecful of thepersonal dignity as well as creating a working environment inwhich people are treated fairly and valued for their uniqueness. It is committed to protecting the physical and psychological integrity and individuality of each person, and opposes any form of behavior that causes discrimination regarding
gender, age, disability, nationality, sexual orientation, ethnicity, religion, political opinions and any other form of individual
diversity, or that is detrimental to the person and their convictions or preferences. Accordingly, Enel promotes people’s
freedom of expression. It does not tolerate physical, verbal,

visual, sexual, or psychological harassment such that results
in a working environment that is denigrating, hostile, humiliating, intimidating, offensive, or unsafe. The commitment toinclusion, as outlined in the Human Rights Policy, proactively
considers the needs and priorities of people and society as awhole. In addition to ensuring that no one is left behind, thisapproach encourages the generation of new ideas and is an
essential condition for the creation of sustainable value in thelong term.
For further details, see the chapters“Enel people” and “Customer centricity”.

Health, safety and well-being(Human Rights Policy, “Employment practices”, principle 2.1.4 “Health, safety and well-being”)
Enel considers the health, safety and psychological, relational and physical well-being of individuals to be themost precious asset to be protected at any moment, atwork, at home and during leisure time. It is committed
to developing and disseminating a robust health, safety,
and well-being culture across its organization, to ensurethat workplaces are free from health and safety hazards
and to promoting behaviors oriented towards work-life
integration. It is actively committed to fostering personal and organizational well-being as enabling factors forpeople’s involvement and innovative potential and doesso, for example, by providing benefits and services that
support the integration between private and working
life (for example, support, including financial nature, forthe care of children and dedicated to maternity or forthe care of the elderly).
For further details, see the chapters“Enel people” and “Health and safety of people”.

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297

Industrial relations(Human Rights Policy, “Employment practices”, principle 2.1.3 “Freedom of association and collective bargaining”)
Enel protects the right of its workers to form or take partin organizations aimed at defending and promoting theirinterests. It also respects their right to be represented, inthe various generation units, by trade union organizations
and other forms of representation elected in compliancewith the legislation and practices in force in the countries
in which they work. The Group believes that collective bargaining is the favored instrument for determining the contractual conditions of its employees and to regulate relations between Company management and trade unions.
Industrial relations activities on the Group level continue tobe conducted in accordance with the model laid down in
the Global Framework Agreement (GFA) signed by Enel inRome in 2013 and renewed in 2023 with the Italian Feder-

ations in the sector, and the global unions IndustriALL and
Public Services International, and which is confirmed as abenchmark best practice for European and non-European
multinationals. The agreement is based on international
human rights and business principles and is inspired by
the best and most advanced transnational industrial relation systems of the reference multinational groups andinstitutions on the international level, including the International Labour Organization (ILO).

For further details, see the chapter “Enel people”.

Procurement activities and relationships with business partners(Human Rights Policy)

Besides guaranteeing the necessary quality standards,
Enel partners are requested to adopt best practices onhuman rights, including working conditions, occupational health and safety, environmental responsibility, andrespect for privacy by design and by default. These principles are also an integral part of development and awareness programs: each person must feel that they are responsible for their own health and safety as well as for thehealth and safety of others. In terms of specific actions,
Enel secures that its procurement processes are basedon criteria that promote sustainable development and social stability, as well as the principles of free competition,equal treatment, non-discrimination, transparency androtation over and above compliance with local legislation.
100% of the purchasing product categories are preliminarily assessed in terms of risk, based on human, environmental, social and economic rights criteria. Furthermore,
Enel supports its partners to increase their resilience, also
in line with the promotion of practices based on a just andinclusive transition. In particular, during 2023 all the activities linked to the target included in the 2023-2025 Sustainability Plan were completed(4). Specifically, the actions
carried out were the following:

1. development of a tool to identify any potential humanrights hotspots in the supply chain of core product categories;
2. meetings with the main suppliers belonging to coreproduct categories, as part of the action plan tostrengthen the integration of the supply chain, todeepen the knowledge of the Group’s commitments
and provide information about the new requirements
in terms of human rights included in the tenders andprovided for by the contractual clauses relating to themapping of the potential supply chain, traceability andinspections;
3. Supplier Performance Management: a guideline has
been drawn up on aspects related to human rights andbusiness practices to support Enel people in evaluating
supplier performance in this area in the “Human rights
and fairness” category (through the application “Trackand Rate”).

For further details, see the chapter“Sustainable supply chain”.

(4) Activities for the target included in the 2023-2025 Sustainability Plan: definition of the strategic framework on human rights management in business
operations, implementation of the resulting action plans, analysis of results and processing of inputs for updating the strategic framework also in the lightof the evolving international context.

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

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AppendixCommunities(Human Rights Policy, “Community and society”, principles 2.2.2, 2.2.3 and 2.2.4 “Respecting the rights of communities”,“Respecting the rights of local communities”, “Respecting the rights of indigenous and tribal peoples”)
Enel’s commitment testifies how much it is aware that its
activities can have a direct or indirect influence on thecommunities. Indeed, individual conditions, socio-economic development and the general well-being of thecommunity are closely connected: Enel is therefore committed to conducting its capital expenditure and the decarbonization path in a sustainable way and to promoting
cultural, social and economic initiatives in favor of local
and national communities in the areas of influence, topromote social inclusion through education, training andaccess to energy. It achieves all this also through constantdialogue aimed at requesting prior, free and informed

consent and taking into due account the cultural, socialand economic diversity of each country. Furthermore, it
requires each of its stakeholders to behave accordingly,
paying specific attention to conflict-affected and high-risk
contexts and vulnerable groups, such as local, indigenous
and tribal populations, for which Enel is committed to respecting the relevant International Labour Organization(ILO) Convention no. 169.
For further details, see the chapter“Engaging communities”.

Customers(Human Rights Policy, “Employment practices”, principle 2.1.2 “Respect for diversity and non-discrimination”, “Communityand society”, principles 2.2.2, 2.2.6 and 2.2.7 “Respecting the rights of communities”, “Privacy”, “Communication”)
Enel is committed to a “just energy transition for all”, also
through the offer of innovative and inclusive services for
its customers, regardless of their age, for weak, destitute,
marginalized, vulnerable people, paying particular attention to people with disabilities. It undertakes to always
respond to suggestions and complaints from customers
and consumer associations, making use of suitable andtimely communication systems (for example, call center
services, e-mail addresses), and to consider all customer
needs, with particular attention to people with disabilities. It is also committed to ensuring that its products andservices are designed to be accessible to all and not tocompromise the health and physical integrity of its customers, as far as reasonably foreseeable. It is committed
to non-discriminatory institutional and commercial com-munication that respects different cultures and at thesame time pays particular attention not to negatively influence the most vulnerable audiences, such as children
and the elderly. Furthermore, it requires that contracts
and communications sent to its customers are: clear andsimple, drawn up using a language as close as possible tothe one normally used by the people for which the message is intended to, be exhaustive, available on our website and accessible in order to be inclusive of vulnerable
categories.

For further details, see the chapter“Customer centricity”.

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Cross-cutting issues
Privacy
Enel respects the confidentiality and rights to privacy of its
stakeholders and is committed to the correct use of the dataand information relating to people working in its organization, to its customers and to any other stakeholder. Personal
data protection and processing is a major challenge in thedigitalization and market globalization era. Enel processes
personal data respecting all fundamental rights and observes
the freedoms and principles recognized by law, in particularrespect for private and family life, home and communication,
protection of personal data, freedom of thought, conscienceand of religion, freedom of expression and information. It also

undertakes to monitor all third-party companies that may bein a position to use the personal data of customers. To thisend, dedicated clauses are included in contracts with partners who use personal data to carry out specific activities,
for example sales services or customer satisfaction surveys.

For further details, see the“Data protection” paragraph in thechapter “Sound governance”.

Innovation
Enel has a global network of Innovation Hubs and Labs to
expand its vision, promoting innovation and sustainability.
The Hubs are located in some of the Group’s key innovation ecosystems, such as the United States and Europe.
They manage a network of relationships with all stakeholders involved in innovation activities, serving as themain source of scouting for startups and SMEs, and fostering financially, environmentally and socially sustainable

solutions. The Labs make it possible for start-ups to work
alongside the technicians and experts of Enel’s BusinessLines in order to develop and test solutions in the mostfertile environment possible.

For further details, see the chapter “Innovation”.

Specific salient issues
Forced labor in the supply chain: the solar
sector experience
Since 2013, Enel’s commitment against the use of any
kind of forced or compulsory labor, as well as all forms ofslavery and human trafficking, has been formally definedin Principle 2.1.1 Rejection of forced or compulsory laborand child labor of the Human Rights Policy.
Enel is committed to contributing to the achievementof ambitious climate targets, which implies the need tostrengthen and digitalize network infrastructures to enable electrification and efficient use of energy, electrify
end uses as much as possible by promoting the active
involvement of customers, while supporting such electrification with a massive deployment of renewable energy
generation. Photovoltaic (PV) technology is key to enabling
the energy transition in the European Union (EU) andaround the world, and Enel believes that the EU needs to

300 Sustainability Report 2023

have a supply chain of this strategic technology within its
borders. The project being implemented to increase theproduction capacity of 3Sun, the Catania gigafactory forthe production of Enel Green Power’s photovoltaic cells
and modules, from the current approximately 200 megawatts (MW) to 3 gigawatts (GW) is pursuing this aim.
Additionally, Enel’s internal supplier qualification and contracting processes include rigorous technical, financial,legal, environmental, health and safety, human rights andethical integrity requirements that are consistently applied
across all markets. Enel supports suppliers in adopting a
traceability system to collect information on the supply
chain and making on-site visits to companies involved init. Finally, Enel participates in several initiatives to improvetransparency throughout the supply chain by collaborating with other utilities, suppliers and industry associations,
including Solar Power Europe.

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Appendix

Access to remedy
2-25

2-26

411-1

Enel continuously monitors whether stakeholders are affected by our company’s business operations, and if any
impact is identified, we put in place remedial actions.
Access to the remedy is ensured through grievance mechanisms that allow people, inside or outside the company,
to flag that there is an issue and to seek a meaningful response:• a whistleblowing channel, available to internal and external stakeholders, accessible:– online or via a toll-free number, as stated on the Enel
Code of Ethics web page;– by addressing a letter to: Enel SpA – Funzione Audit –Codice Etico. Via Dalmazia, 15 – 00198 Roma, Italy.
Whistleblowing reports are handled in accordance with a
specific process detailed in the “Handling of anonymousand non-anonymous reports” policy, also illustrated inpoint 3.1 “Stakeholders grievance” of the Human Rights••

Policy. For further information and details on stakeholder
grievances, see the “Values and pillars of corporate ethics” paragraph of the “Sound governance” chapter;several processes and tools available to the communities in the influence area of our operations.
People who wish to contact Enel can do so through local channels, such as the Group’s local team or a specific person, toll-free numbers, or, in the case of isolatedrural communities, a local leader available to periodically collect any complaints;
customer complaint or information channels (via email,website, toll-free number).
Customer reports are managed through dedicatedchannels and analyzed by a specific working group sothat the most suitable actions are taken, both at thecomplaint management stage and, above all, in preventing the underlying causes.

Remedy in legacy projects
3-3

413-2

EU22 DMA (former EU20)

Below is an illustration of the impacts(5) of some legacy
projects.

CHILE
1 thermal coal-fired power plant | decommissioned in 2022 | actual impact
Plant name: Bocamina II | Location: Coronel region of Bío Bío | Size: 350 MW
1 hydro power plant | in operation | actual impact
Plant name: Ralco | Location: Alto Bío Bío | Size: c. 700 MW

CHILE | BOCAMINA II
Actual adverse impact
Land management and relocation.
Affected stakeholders
Families living in the area surrounding Bocamina’s II unit
which was adjacent to the first unit.

Context
The plant was part of the coal-fired thermoelectric complexof Bocamina, whose first unit (128 MW) shut down at the
beginning of 2021. The second unit (350 MW), shut downat the end of September 2022, was built in an area characterized by high urbanization and social vulnerability thatgenerated impacts on the housing units around the construction site. With such closures, after the one involving
the Tarapacá plant in 2019, Enel has become the first powercompany in the country to stop using coal for its generation operations, 18 years ahead of the original 2040 goal set
within Chile’s 2019 National Decarbonization Plan.

(5) Impact occurred.

Managing human rights

301Remedies identified
Engagement with the community has led to the development and the implementation of a broad series of initiatives for the social, economic and entrepreneurial development of the affected community, as well as an ambitious
revegetation project to transform the 10-hectare area ofthe plant’s ash landfill, which will no longer be used, into anative forest. Furthermore, in line with the principles of thecircular economy, various alternatives are being studied toreuse the facility’s assets in order to provide new life to thesite and create development opportunities for the area. In
2017, an in-depth analysis was carried out, with the support
of a company with considerable experience in the field, toreview how the original relocation process was carried out
with the purpose of remediating any gap vs international
existing standard. Among the gaps that emerged as moreevident are the inequality and partiality of the agreements
previously reached both with the persons concerned andwith local authorities, as well as the misalignment with international standards on resettlement. The new plan, whichaims to resolve these gaps, involves around 1,400 families,
most of them identified as vulnerable groups by the Ministryof Social Development’s classification.
Key lines of worka. Preservation of the social and human capital of thecommunities:
i. remedy construction defects of some of the newhomes which were identified thanks to a joint technical committee involving Enel, the affected community and the Center of Investigation and Technologies
of Construction (CITEC) - Universidad del Bío Bío;ii. quantifying and compensate the impacts on thequality of life of families affected by construction
defects and the impact associated with 12 churches

that were not involved in the relocation process;iii. finance the reconstruction of the historic school ofCoronel, “Rosa Medel”, as agreed with the municipality and the community;
iv. requalify new and pre-existing areas adjacent to thesite:• building 12 community headquarters in various newneighborhoods;• painting of a 3,500 square meter mural - one of thelargest in Chile - along the external perimeter ofthe Bocamina power plant, through the narrationof the history of Coronel and its inhabitants (involving dozens of neighborhoods and organizations);
v. just transition agreement with the Municipality ofCoronel, through which the local government will beable to invest in strengthening health and education
services, along with completing the construction ofa new school and park.
b. Socio-economic development:
i. support to artisanal fishing in the form of dedicatedloans (defined jointly with the local fishing community);ii. support to local businesses in the form of dedicatedfunding.
Grievance
In line with the United Nations Guiding Principles on business and human rights, both physical and online grievancechannels have been made available to the community.
Once received, reports are handled internally through a
dedicated process. Over 135 reports were received during2023. By the end of the reference period, 88% had beentaken up(6).
For general details see the website https://www.enel.cl/en/
sustainability/creating-shared-value/bocamina.html.

CHILE | RALCO
Actual adverse impact
Land management and relocation.
Affected stakeholders
Families who live on indigenous land.
Context
The area of Alto Bío Bío where the plants are located records
a historical setting of the indigenous Pehuenche populations
whose presence in the area of influence of the plant amounts
to approximately 3,000 people, equivalent to 800 families
spread across 11 communitiesThe construction of the Ralco
plant led to the flooding of almost 3,500 hectares of indigenous land, and involved the relocation of 81 families (about(6) The remaining 12% has been taken up in 2024.

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400 people) who moved to the territories of the indigenous
communities of Ayin Mapu and El Barco, located respectively
in the municipalities of Santa Bárbara and Alto Bío Bío.
To support this relocation, Enel has ensured, for 10 years,social services, housing and a plan of continuity assistance(PAC) to affected families, addressing historical issues andestablishing a permanent dialogue with all communities in
the area.
Remedies identified
The engagement of the local community led to the establishment of improvement plans regarding:a.	Education for children and young people in the area ofinfluence:

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i.	access to and permanence in formal education considering that the average number of years of schooling in the area is 6.5 years, well below the number ofyears of compulsory education in Chile. The initiative
involved awarding scholarships to cover school fees,
room and board and study materials. In 2023, morethan 640 students benefited from the program, 60%of them women and 95% belonging to the Pehuenche indigenous community;ii.	transport support, access to technology, and scholarships for secondary and higher education;iii.	involvement of intercultural Pehuenche assistants inthe teaching process;iv. construction of the Quepuca Ralco school(7).
b.	Economic development to support the self-dependence of local communities:
i. improvement of production plants and equipment;ii.	skills enhancement through training in areas such as
agriculture and tourism.
c. Cultural identity programs:
measures to support indigenous communities in developing cultural initiatives aimed at promoting, consolidating and sustaining cultural practice, such as
traditional ceremonies, language preservation, dissemination of culture and others. These include the start of4

Performance 2023

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Appendix

construction work on the Quepuca Ralco Indigenous
Cemetery and the Memorial Monument. The relatedplanning was done jointly with the communities that will
use these spaces.
d. Risk reduction initiatives for emergency situations:agreement with the Municipality of Alto Biobío to address the multidimensional housing poverty of the local
population and reduce risks in emergency situations byimproving the skills and training of vulnerable groups,
so as to improve their capacity to react to emergencies
linked to volcanic eruptions and forest fires.
e. Access to energy:
collaboration with the Municipality of Alto Biobío for the
maintenance of 120 photovoltaic panels belonging tofamilies residing in the area, in order to allow them toaccess clean and sustainable energy.
Grievance
In line with the United Nations Guiding Principles on business and human rights, both physical and online grievancechannels have been made available to the community.
Once received, reports are handled internally through a
dedicated process. 28 reports were received in 2023, all ofwhich were taken up.

COLOMBIA
1 hydro power plant | in operation | actual impact
Plant name: El Quimbo | Location: department of Huila | Size: 400 MW

COLOMBIA | EL QUIMBO
Actual adverse impact
Land management and relocation.
Affected stakeholders
People and families with productive or commercial activities in the area of influence of the plant.
Context
The plant is located in the Department of La Huila, and its
construction has contributed to greater energy security
and stability of the Colombian electricity system, as well as
promoting economic growth of municipalities in the areaof influence, in line with the development goals set by the
Department of La Huila.

Remedies identified
Community engagement began at the end of 2014 andled to the development and adoption of a multi-year planthat includes a wide range of initiatives mainly divided into:
a. Environmental management:
i. awareness raising campaigns;
ii.	preservation of biodiversity and nature: restorationof >11,000 hectares of tropical dry forest.

For further details, see the chapter“Roadmap towards natural capital conservation”.

(7) The School is awaiting official recognition by the Ministry of Education. This will allow it to become fully operational, together with the boarding school andthe space made available for the local community.

Managing human rights 303

b. Socio-economic development:
Activities focused on providing support with technicalissues related to production processes and how to improve their efficiency. Over the last 10 years, more than
30 projects have been carried out in the Municipalities
of Altamira, Tesalia, Paicol, Garzón, Gigante and El Agrado, involving an investment of more than 2 million euros
and over 15,000 families in the Department of La Huila.
The most significant cooperation agreements relate to
the implementation of agricultural production plansagreed with around 90 families relocated to Garzón,
Altamira, El Agrado and Gigante. With an investmentof over 800,000 euros, the beneficiaries have improved
and increased the production and marketing of various
foods such as corn, wheat, lemons, milk, cocoa, tomatoes and a wide range of fruits, including products fortheir own consumption. Below are some examples ofthe main agreements reached in 2023.
Municipality of Garzón
Planting of 100 hectares of coffee jointly withplantains
The project aims at getting coffee varieties that areresistant to rust and produce higher yields, and is intended for 100 farmers who will receive coffee seedlings, fertilizers and agricultural equipment. In addition,technical, social and environmental monitoring will
be carried out to guarantee the sustainability of theircrops and increase coffee production. Enel will cover
approximately 40% of the total investment (approximately 250,000 euros).
Optimization of the local marketplace meat module
electrical appliances
The project aims at revamping the electricity networks
built more than 20 years ago and will benefit over 70
traders. Enel will cover approximately 80% of the total
investment (over 110,000 euros).
Municipality of Tesalia
Installation of sugarcane molasses processing plantThis initiative will benefit small and medium-sized sugarcane growers, with the construction of a sugarcane
molasses processing plant and the planting of 15 hectares of new sugarcane, with the aim of increasing panela manufacturing and improving the living conditionsof families. Enel will cover more than 80% of the total
investment (over 65,000 euros).
Improvement of livestock farming infrastructure
The project aims to improve livestock farming infrastructure and health conditions for cattle, as well as toincrease milk production, with the supply of silage or

304 Sustainability Report 2023

concentrated feed, for greater sustainability and profitability of farming, in order to improve the economic
prospects of the agricultural companies involved, allbelonging to the ASOGATE, ASOGAPAC and FOGAGRO
associations. Enel will cover more than 80% of the total
investment of over 90,000 euros, with the Municipalityof Tesalia and the associations covering the rest.
Strengthening of the cocoa production chain
The initiative concerns the supply of specific machineryand fertilizers, with the aim of increasing cocoa production by 75%. Enel will cover 80% of the total investmentof over 80,000 euros.
City of Paicol-Huila
Livestock farming development
This project, which will benefit 94 farmers, aims to contribute to the development of livestock farming the region,
improving milk production rates and the genetic qualityof the livestock. The total investment is approximately
140,000 euros, 30% of which will be covered by Enel.
Strengthening cocoa production
This is a project that began some time ago and involves
the United States Agency for International Development (USAID), the Luker Foundation, Luker Chocolate,the Saldarriaga Concha Foundation and EAFIT University, and aims to strengthen cocoa production by training
producers, carrying out environmental assessments to
support production, support the cultivation of cocoa
plants (through all stages of development), assist withfight against parasites and diseases. At the end of 2022,
activities began to extend the program to a greaternumber of growers and an event was organized in thesecond half of 2023 to promote the initiative. Training
was successfully provided to nearly 400 local producers. Furthermore, over 4,000 cocoa trees were planted in the municipalities of El Agrado, Pital, Gigante andGarzon, and over 21,000 in the municipalities of Hoboand Algeciras. Finally, a weekly monitoring system has
been set up in over 20 farms to detect the presence ofcrop parasites and diseases, which has shown a significant improvement in their health.
Grievance
In accordance with the provisions of the United Nations
Guiding Principles on business and human rights, both
physical and online grievance channels have been madeavailable to the community. Once received, reports arehandled internally through a dedicated process. During2023, over 600 reports were received with requests for
information and/or clarifications on the progress of theactions agreed in connection with obtaining the environmental license, all of which were taken up.

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Other relevant information
Some local inhabitants/fishers have started “acciones
de grupo” and “acciones populares”, which are currently
pending, declaring that the revenues from their businesses have been reduced as a result of the construction of
the power plant and alleging that the activities of filling the
Quimbo dam have had an impact on downstream fishingand the respective environment. For more details, see theparagraph related to El Quimbo, in the section “Contingent assets and liabilities” of the 2023 Integrated Annual
Report.
Furthermore, during 2023, Enel received a letter from theUnited Nations Special Rapporteurs(8), as part of the communication procedure of the Special Procedures of the4

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Appendix

United Nations Human Rights Council, requesting information relating to:• the impact of the El Quimbo project on the stakeholders in the area of influence and on their right toa “healthy environment and food” and the reporting
channels made available to them;• the Group due diligence process;• measures to remedy the “potential negative impacts
on human rights and the environment” caused by the
project in the surrounding areas of the Magdalena andSuaza rivers.
Enel answered all the questions (the full text of the reply
can be found on the United Nations website) describing
its overall approach to human rights in business practices.

Other projects
WINDPESHI (La Guajira)
1 wind power plant | currently suspended | Size: 200 MW

Context
The plant, whose construction is currently suspended,
would have contributed to diversifying the country’s energy mix.
State of development
On May 24, 2023, Enel announced the suspension of theconstruction of Windpeshi for an indefinite period of time.
This circumstance mainly implies the interruption of all theconstruction works other than those that are strictly necessary for the fulfillment of the project’s social and environmental commitments.
The decision was made by the Board of Directors of Enel
Colombia given the impossibility of guaranteeing the construction pace of the project.
The decision, as stated in the specific press release fromEnel Colombia dated May 24, 2023, “was taken after carefulanalyses and feasibility studies which led to the conclusionthat it is not possible for the Company to continue withthe construction of Windpeshi”, as “projects must be sustainable not only socially but also economically, and theirsuccess depends on collaboration between businesses,
institutions and communities”(9). The Group will however continue to engage with communities and all relevant
stakeholders to address the implications of this decision.

To go into more detail, in addition to the resources used
to carry out the commitments made during the prior consultation, more than 7.1 billion Colombian pesos have been
invested in projects relating to quality education, accessto water and economical progress.
Stakeholder engagement
The community in the area of influence where the plant
would be built is made up of indigenous populations residing in the Municipalities of Maicao and Uribia, belonging to the Department of La Guajira. This area is characterized by a significant presence of indigenous communities,
which represent 20% of the total population of Colombia.
In addition to Enel’s commitment to listening to and proactively engaging with local communities, with particularattention to the most vulnerable communities, such as indigenous and tribal populations in line with ILO Convention
no. 169(10), the national law provides that prior consultationof indigenous populations must take place according to a
specific process.
Such process involves the directorate of the Ministry of
the Interior national prior consultation authority, that is
responsible for determining whether a community is subject (or not) to prior consultation, and that guides, directs
and coordinates the exercise of the right to preliminary(8) Special Rapporteur on the Situation of Human Rights Defenders; Chair-rapporteur of the Working Group on Human Rights and Transnational Corporations
and Other Business Enterprises; Special Rapporteur on the Issue of Human Rights Obligations Relating to the Enjoyment of a Safe, Clean, Healthy andSustainable Environment; Special Rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression.
(9) Enel Colombia press release: https://www.enel.com.co/es/prensa/news/d202305-suspension-indefinida-windpeshi.html.
(10) Principle 2.2.4 “Respect for the rights of indigenous and tribal peoples”, Enel Human Rights Policy 2021.

Managing human rights 305

consultation, through appropriate procedures, ensuring
the participation of the communities through their representative institutions. All in compliance with the reference
regulatory framework.
The Ministry of the Interior also acts as a third party at
meetings held with the communities, which are documented through minutes signed by the Company, the Ministry
and the community representatives. The Ministry of theInterior is also in charge of setting up follow-up meetings
during which it goes through the list of planned actions toverify progress according to the schedule agreed duringconsultation.
Documentation about progress on the projects agreed withthe communities, planning and prioritization of resources,
yearly update of the population census of the certified
communities are a fundamental and transparent way tomake sure rights of communities are respected.
Key lines of work
Below is a summary of the actions taken before the suspension:a. Socio-economic development:i. access to drinking water:• two public basins were built to provide drinking water
to communities in the area of influence;• a non-functioning aqueduct was repaired, which allowed water to be supplied to communities along theroad to Windpeshi. Both actions benefited 3,000 people belonging to the indigenous Wayuu population;ii. education:• agreement signed with SENA (Servicio Nacionalde Aprendizaje) to provide technical training andcertify the level of skill achieved by participants.
Actions concerned job training on basic construction works and support to entrepreneurship development through marketing, sales and handicraft
courses aimed at empowering communities to develop their own business;• joint project with Artesanías de Colombia in theWayuu territory regarding traditional artisan weaving practices. The training activities involved 560
people, including 270 through the agreement with
SENA and 290 through the joint project with Artesanías de Colombia.
Other
An agreement was also reached with the University of La
Guajira for the drafting of an intercultural manual, an essential instrument for understanding the dynamics andspecific aspects of the ethnic communities.

Midelt, Boujdour and Essaouira
3 wind power plants | 2 in operation and 1 under construction
Sizes: 210 MW, 300 MW and 270 MW

Context
In March 2016, a consortium between Enel Green Powerand the Moroccan company Nareva, in partnership withthe supplier Siemens Renewable Energy, was awarded the
project for the development, construction, and management of wind plants.
The energy produced by the wind farm will be sold to
ONEE that will use this energy for the benefit of all final
users, including the local population.
State of development
In operation: Midelt, 210 MW wind farm located approximately 20 km from the center of Midelt and Boujdour, 300
MW wind farm located approximately 180 km south of theport of Laayoune (Port of Marsa). Under construction: Essaouira, 270 MW wind farm located approximately 28 km
from the city of Essaouira.

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MideltStakeholder engagement• 2015: preliminary analysis of the social, economic andenvironmental context (“SEECA”) to identify the relevantsocio-economic issues and the specific needs of local
communities;• 2019: environmental and social impact assessment (Environmental Social Impact Assessment – ESIA);• 2020: new SEECA and consultation.
Key actions implementeda. Environment (sustainable building site and during operation): assessment and mitigation of environmental
impacts, including CO2 emissions, waste and water, bymeans of:• photovoltaic mini-grid plus storage used to powerbasecamp, auxiliary services of the base camp andturbines erection;

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Stakeholder engagement andmateriality analysis• stand-alone PV modules used to power prefabricatedbuildings/containers and streetlights;• utilization of energy efficient technology (LED lamps,
solar water heating system) to reduce electricity consumption;• water recycling solution installed in all water systems;• implementation of a biodiversity preservation plan
aimed at protecting the local ecosystem, among whichplantation of local trees and species nearby the building area.
b.	
Health and safety at work: application of the highest
standards, in line with Enel’s usual practices.
c.	Socio-economic development (during construction andoperation):i.	
training and hiring of over 250 people for non-specialist jobs (during the construction phase), all from
the Midelt community;ii.	maximized hiring of local small and medium-sizedbusinesses for auxiliary services (including transportation, cleaning, catering, supply of materials, etc).
This was aimed also at supporting the local economy
particularly affected by the consequences of the pandemic;iii.	food basket provision to the most vulnerable local
families.
d.	Promotion of education (also during the operational
phase):i.	classes dedicated to approximately 1,400 beneficiaries of 6 local schools in Amersid & Mibladen ruralcommunes, held by local volunteers that covered topics related to renewables and the operation of windplants;ii.	setting up of a yearly scholarship granted to one university student coming from the community of Midelt;iii.	adoption of a sustainability and environmental education program called AKABAR AL MAARIFA to train
professionals in Midelt schools and educate primaryschool children with the aim of:• developing ecological and social awareness, environmental sensitivity, behaviors and skills;• promoting active participation in community issues
from early childhood, in order to build environmental
citizenship from primary school;• introduce, in addition, an effective training and professional development program to equip teacherswith the knowledge, values, skills and strategies
necessary to implement the above environmental
citizenship.
e. Healthcare during the operational phase:i. setting up of a health facility (caravan) made avail-4

Performance 2023

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Appendixable to 1,400 students from neighboring schoolsfor various types of specialist visits (general practitioners, dentists, ENT specialists, etc., and supply of glasses where necessary) to combat school
dropout among students children caused by healthproblems.
Boujdour
Stakeholder engagement• 2015: preliminary analysis of the social, economic andenvironmental context (“SEECA”) to identify the relevant socio-economic issues and the specific needs of
local communities, including the development of infrastructure, education, healthcare, poverty problems,social services and the protection of inherited cultural
assets;• 2019: environmental and social impact assessment(Environmental Social Impact Assessment – ESIA);• 2020: human rights due diligence(11), a new SEECA andconsultation which involved vulnerable people groups
self-identifying as Saharawi.
Main actions taken
a. Environment (sustainable construction site and during
operation): see the information already provided forMidelt.
b. Occupational health and safety:i.	application of the highest standards, in line with
Enel’s usual practices.
c.	Socio-economic development (during construction
and operation):i.	training and hiring of Saharawi people:• setting up a training center in the base campduring the construction phase with civil and electrical training aimed at bridging the local skills
gap, thus creating the opportunity to use theseskills in the future;• hiring of around 200 people for non-specialist jobs, >90% from the local Sahrawi community
during the construction phase;• hiring of technical personnel for O&M management, turbine service provider and substation
maintenance, security and cleaning services;ii.	maximized hiring of more than 100 local small andmedium-sized businesses for auxiliary services (including transportation, cleaning, catering, supply ofmaterials, etc.). This was also aimed at supporting
the local economy particularly affected by the consequences of the pandemic;(11) In line with the United Nations Guiding Principles on Business and Human Rights and in collaboration with an independent non-profit organization withinternational expertise in human rights and business.

Managing human rights

307iii.	ad hoc infrastructure for the needs of people andsmall local businesses in the area of influence of the
project:• during civil works, new sections of road were built
as well as requalifying existing ones (approximately 60 km). This activity allowed to reconnect main
roads with grazing areas, thereby benefiting the
pastoral communities in remote areas;• due to the newly available renewable electric energy generated by the Boujdour plant, the local
electricity connection to the city of Boujdour is
being reinforced;iv.	
support for local Sahrawi nomadic camel drivers
through the provision of water tanks and cisterns;v.	food basket provision to the most vulnerable local
families.
d. Promotion of education:i.	
education and vocational training programs designed to fight against primary school dropout, filling the mismatch between training and employment
opportunities, providing knowledge about renewable energy. The initiatives involved approximately
1,000 beneficiaries of 11 local schools, and related
specifically to:• entrepreneurship: workshops to introduce young
people to entrepreneurial activities;• “It’s My Business”: promotion of the developmentof entrepreneurial skills of middle school students
through gamification and contact with entrepreneurs known nationally and internationally;• business program: learning all the stages of setting up a business and participation of young highschool students in various competitions, at local,
national and regional (MENA) level;• lessons held by local volunteers from Nareva andEnel Green Power Morocco on topics related to renewables and the operation of wind plants;• establishment of an annual scholarship awarded toa university student from the Boujdour community.
e. Healthcare:i.	setting up of a medical facility (caravan) made available to 1,000 students coming from surrounding
schools for specialist examinations of various types(general practitioners, dentists, ear, nose, and throat
doctors, etc. plus provision of eyeglasses whenneeded) as a mean to fight children school dropout
caused by health issues.

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Essaouira
Stakeholder engagement• 2015: preliminary analysis of the social, economic andenvironmental context (“SEECA”) to identify the relevantsocio-economic issues and the specific needs of local
communities, including the development of infrastructure, education, healthcare, poverty problems, social
services and the protection of cultural assets;• 2021: Environmental Social Impact Assessment (ESIA).
Main actions takena.	Environment: please refer to Midelt and Boujdour description.
b.	Occupational health and safety: application of the highest standards, in line with Enel’s customary practices.
c.	Socio-economic development (during construction):i.	training and hiring of employed for civil and electrical works;ii.	hiring of 332 people from the local community for
non-specialist jobs;iii.	maximized the hiring of local small and medium-sized businesses for auxiliary services (includingtransport, cleaning, catering, supply of materials,etc.).
d. Promotion of education and other services:i.	training dedicated to around 400 beneficiaries fromlocal schools, held by local volunteers, who covered
topics related to renewables and the safety measures used during the construction of wind plants;ii.	
installation of safety fences for local schools nearroads;
iii.	restoration of a place to visit a local religious saint forthe benefit of the local community.
Grievance
The management system for all three facilities has been
defined in line with the United Nations Guiding Principles
on Business and Human Rights.
Once received, reports are recorded, analyzed and classified from 1 to 3 (the rating takes into account repetitionand severity; 1 is the lowest score, 3 the highest). The analysis allows a potential solution to be identified. Once thesolution is agreed, the report is deemed to be completed.
The communities have various channels available: on-sitesuggestion boxes, post and electronic mail, telephone,company staff present during site visits. The language

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used is Arabic and, when a member of the community is
not able to write and speaks a dialect, a translator is identified inside or outside the construction site.
In particular, the reports handled for all three projects concerned:
1. request on using local labor from the community. Solution agreed: hired non-qualified workers as describedat point c., i. of the main actions adopted in Midelt andBoujdour;
2. request for using local SME’s. Solution agreed: contractors, with the support of local stakeholders,launched a beauty contest to select local service pro-

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Appendix

viders from the city of Midelt as suppliers for the services and equipment needed as described at point c.,ii. of the main actions adopted in Midelt and Boujdour.
Furthermore, for Essaouira a request of repairing water
pipes that were damaged was made. Solution agreed: thewater pipe was repaired to ensure water supply continuity while starting the building of a brand new one The first
request was satisfied (to guarantee the continuity of thewater supply) and at the same time the construction of anew pipe began. For the second, contractors began irrigating the streets using recycled or sea-pumped water, toreduce dust raised during transportation.

Osage Wind (Osage County, Oklahoma, USA)
1 wind power plant | in operation | Size: 150 MW

In a case brought by the United States of America (astrustee of the Osage Nation) and the Osage Mineral Council against Enel Green Power North America, Enel Kansas
LLC and Osage Wind LLC, on December 20, 2023, an order was issued by the Federal District Court of Northern
Oklahoma providing for the future removal of the windfarm and the continuation of the judgment to determine
damages. The proceedings are continuing in the first instance, and the opposing claims are contested in full; theorder, which is not final, will be appealed in the appropriate
venues and at the appropriate time.
Osage Wind operates for the benefit of the local community providing funds for the Osage area schools every year.
Furthermore, farmers, ranchers and other Osage landowners benefit from the rents accrued by leasing their private property as part of the project and the region benefits
from clean, renewable energy that powers 50,000 homes.

Managing human rights 309

TAX
TRANSPARENCY
3-3 207-1 207-2 207-3 207-4
TAX
TRANSPARENCYDOUBLE
MATERIALITYSUSTAINABILITY
PLAN PILLAR

MATERIAL TOPICS:• Business conduct and ethics

SUSTAINABLE DEVELOPMENTGOALS (SDGs)

SOUND GOVERNANCE

Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTSACTIVITIES

2024-2026
TARGETSMAIN
SDGs

TAX TRANSPARENCY
Cooperative Compliance Index

95%

96.7% in 2026

Group companies membership to cooperativecompliance schemes (cooperative compliance with
tax authorities)
Goals

New

Progress

Redefined

Outdated

Not in line

In lineAchieved

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

Tax strategy
Since 2017, the Enel Group has had a tax strategy(1) consisting of a set of principles and guidelines inspired by thevalues of transparency and legality and published onlineat www.enel.com. The Group’s subsidiaries are required toadopt the tax strategy approved by the Parent Company,
thereby assuming the responsibility for ensuring that it isunderstood and applied.

Tax strategy objectives
The Board of Directors of Enel SpA (BoD) defines the tax
strategy of the entire Group in order to ensure an fair, responsible and transparent tax contribution and guarantee a
uniform management of taxation for all concerned entities,
which is inspired by the following logic:• correct and timely determination and settlement of

(1)

310

•

taxes due under the law and implementation of the respective obligations;correct management of the tax risk, understood as therisk of violating the tax rules or abusing the principles
and purposes of the tax system.

Updated to September 21, 2022 by resolution of the Board of Directors of Enel SpA (BoD).

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Tax strategy principles
The tax strategy principles are the guidelines for Group
companies, underpinning their business operations whenmanaging the fiscal variable. The principles also require
suitable processes to be adopted to ensure their effectiveness and application.
Values: in line with its own sustainability strategy, theGroup manages its tax assets in compliance with the values of honesty and integrity and is aware that the revenues
deriving from levies represent one of the main sources ofcontribution toward economic and social development of
the communities in the countries in which it operates.
Legality: the Group pursues behavior oriented toward observance of the applicable tax provisions and is committed
to interpreting them in order to respect not only their form
but also their substance.

Tone at the top: the Board of Directors has the role andresponsibility of guiding dissemination of the corporate
culture and values described above.
Transparency: the Group is transparent to all stakeholders
and actively collaborates with the tax authorities, enabling
the latter, inter alia, to gain a full understanding of the facts
underlying the application of tax rules.
Stakeholder value: the Group implements a sustainablebusiness model, aimed at creating and distributing value
to all stakeholders over the long term. Tax contribution
is one of the key components of the value distributed tocommunities and is managed in compliance with the principle of legality and through active cooperation with the
tax authorities in accordance with the principle of transparency.

Governance
Enel SpA ensures that the tax strategy is acknowledged
and applied within the Company through the governancebodies. Its interpretation is left to the Parent Company,
through the Tax unit, which also manages its periodic up-

dates. In particular, the tax strategy is reviewed annually
and any changes that may be deemed necessary are submitted to the Board of Directors of Enel SpA (BoD), which
decides on them.

ComplianceGroup entities must respect the principle of legality, by
swiftly applying the tax laws of the countries where theGroup operates, to ensure that the wording, spirit andpurpose of the applicable tax rule or system are respected. In addition, the Enel Group does not engage in behaviors and operations, domestic or cross-border, that resultin purely artificial constructions that do not respect eco-nomic reality and which may be reasonably assumed tooffer undue tax advantages. This is because they are contrary to the purpose or spirit of the relevant tax provisions
or system and generate phenomena of double deduction,
deduction/non-inclusion or double non-taxation, including as a result of asymmetries between the tax systems ofthe different jurisdictions.

Intercompany transactions
Intercompany relations are structured at market prices
and conditions, ensuring value creation in the locations
where the Group conducts its business. For all intercompany transactions relevant to transfer pricing regulations, the Enel Group has adopted a policy that is inline with the principle of free competition (arm’s lengthprinciple), an international standard established by the
Model Tax Convention and detailed in the OECD Transfer Pricing Guidelines for Multinational Enterprises andTax Administrations (hereinafter also referred to as the“OECD Guidelines”). To this end, the Group has put internal policies in place that comply with these guidelines

and mainly provide for the application of the Comparable
Uncontrolled Price – CUP method (which compares theprice of goods transferred and/or services provided in atransaction concluded between associated companies
with the price applied in transactions between independent third parties). The Group’s transfer pricing policies
refer to the following types of transactions: managerial
services, technical and ICT services, staff secondments,
intragroup loans, intercompany current accounts, guarantees and platforms.
Furthermore, consistent with the applicable regulations,
Advance Pricing Agreements (APAs) are sought with lo-

Tax transparency

311

cal tax authorities on the determination of transfer prices and the application of rules relating to cross-borderflows between Group entities. The APAs in force in 2023
are concentrated in Spain and relate to the management of common services in line with the Group’s transfer pricing policies. During 2023, discussions began with
the Dutch Tax Authorities with the aim of reaching an
APA agreement aimed at confirming the transfer pricing methods applicable to the Group’s financial transactions. The same transfer pricing policies have been
positively discussed with the Italian Revenue Agency aspart of the cooperative compliance regime.
In particular, with specific regard to intercompany financial transactions, the Enel Group has organizationallyadopted a centralized finance model for its subsidiaries,
which requires that the Group’s two financial companies,
Enel Finance International (EFI) and Enel Finance America(EFA), centralize part of the treasury and financial market

access activities and act as the primary point of reference for the management of financial or liquidity needs
generated by the operating entities.
Before concluding any contract between its companies
subject to transfer pricing regulations, the Enel Group manages this process using specific management and monitoring software which allows verification of the correct application of the selected methods, the margins obtained andmore generally of transfer pricing policies, where applicable.
Finally, when analyzing the size of intercompany transactions, it can be seen that these account for a minimal
percentage (generally around 6%) of the Group’s total
aggregate revenues(2), due to the fact that the energy
business is conducted almost entirely within the boundaries of the individual Country, from the power generation process to market sales. In 2023, intercompany
transactions as a percentage of the Group’s total aggregate revenue amounted to approximately 1.8%(3).

INCIDENCE OF INTERCOMPANYREVENUES 2023

INCIDENCE OF INTERCOMPANYREVENUES 2020-2022

Group’s total
revenues

Group’s total
revenues

1.8%

Intercompany
revenues

5.7%

Intercompany
revenues

98.2%

94.3%

(2) The calculation was carried out by comparing the revenues of cross-border intercompany transactions on the basis of the total revenues reported in theOECD CbCRs (Country-By-Country Reports) of the respective tax periods (i.e., 108,165 million euros in 2020; 156,619 million euros in 2021; 267,913 million
euros in 2022 and 168,447 million euros in 2023).
(3) The average value shown for 2023 is lower than the average value for previous years due to the results for the 2021 tax year, which, with the same numberof intercompany transactions, saw an exponential increase in commodities and associated hedging transactions, with impacts on revenues, which led to
an increase in this percentage to 10% in the reporting year, accordingly increasing the average value.

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Low-tax jurisdictions
The Enel Group is present in the countries in which it operates exclusively for business reasons and this presence
is not guided by tax-related purposes. The Group does notmake investments in or through countries considered tohave privileged taxation, hereinafter also “Low-tax jurisdictions”(4), for the sole purpose of reducing or transferring the tax burden. Such investments can only be considered if they are supported by valid economic reasons andare intended for development, in line with the businesspurpose of the Enel Group.
In cases where, in specific situations (e.g., the purchase ofcompanies from third parties), the presence of structures
created for the sole purpose of reducing the tax burden or
located in territories that qualify as Low-tax jurisdictions isfound, the Group is committed to eliminating such structures as quickly as possible.
The definition of the criteria for identifying the so-called“Low-tax jurisdiction” is not unanimous at an international
level and there are different lists which are prepared forexample by institutions(5) and non-governmental organizations(6).
Recently, in its work relating to the Global Minimum Tax(GMT)(7), the OECD defined a Low-tax jurisdiction as a jurisdiction in which a multinational group is subject to an
Effective Tax Rate (“ETR”) of less than 15%.

Furthermore, through the so-called Transitional Safe Harbours, the GMT excludes countries which, despite having
a tax rate of less than 15%, are places where companies
are rooted, as proven by adequate amounts of material
assets and/or personnel(8) or where business earnings are
economically irrelevant and such as to exclude a priori a
potential tax risk(9).
Considering that the aforementioned Global Minimum Tax
regulation (the ETR Minimum Tax indicator and the tests
related to the substance and economic relevance of thebusiness) has become a reference for defining a “Low-tax
jurisdiction”, the Enel Group has decided to use this definition and, in keeping with its tax transparency strategy,
represents that from the estimates made on the basis of
the best interpretation of the documents published by theOECD, on the data as of December 31, 2023, almost allof the Group countries appear to have adequate levels oftaxation and substantial level of presence of its business.
On a more general level, while adopting the ETR as defined by the rules on the minimum tax as a reference for
identifying countries potentially having preferential taxation, Enel believes that the most representative indicatorfor evaluating the tax contribution in the territories where
it has a presence is the Total Tax Contribution as defined inthis section relating to tax transparency.

Tax incentives
Tax incentives are a key, development-oriented mechanism for economic policy, which countries use to stimulate
growth and attract investment to support the national policy. The use of tax incentives generally determines a reduction in long-term tax payables (tax reduction) or else only
the temporary deferral of the tax payment (tax deferral).
The Enel Group only uses widely applicable tax incentives
for all operators and respects all specific regulations,where the incentives are in line with its industrial and operational objectives and are consistent with the economic
substance of its investments. The main incentives that theGroup benefits from relate to investments in renewableenergy in countries that support the energy transition
with these economic policy instruments, mainly the UnitedStates.

(4) For simplicity, this refers to tax havens, countries considered to have privileged taxation or low taxation, etc.
(5) EU list of non-cooperative jurisdictions for tax purposes as of October 2023: American Samoa, Anguilla, Antigua and Barbuda, Bahamas, Belize, Fiji, Guam,
Palau, Panama, Russia, Samoa, Seychelles, Trinidad and Tobago, Turks and Caicos Islands, United States Virgin Islands, Vanuatu. Countries that cooperatewith the EU but have pending commitments are: Albania, Armenia, Aruba, Botswana, British Virgin Islands, Costa Rica, Curaçao, Dominica, Eswatini, Hong
Kong, Israel, Malaysia, Turkey and Vietnam.
(6) For example, Tax Justice Network, Oxfam and Observatorio de Responsabilidad Social Corporativa in Spain.
(7) Tax agreement signed in 2021 by around 140 countries.
(8) Routine profit test: this is passed when the sum of a percentage, applied to personnel costs and the value of tangible fixed assets, exceeds the EBT for theyear. The purpose of this test is to exclude from GMT a multinational group that has a significant level of economic substance in a country on the basis ofproduction assets held and personnel costs.
(9) De minimis test: this is passed if both of the following conditions are met in a country: a) revenue under 10 million euros and b) income (EBT) under 1 million
euros. This test is intended to exclude those countries where the economic presence of a group is minimal or in the start-up phase.

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313

Tax governance, control and risk management
Governance body
Enel’s organization model provides for: (i) at least an annual flow of information to the Board of Directors fromthe Tax unit (so-called “Tone at the top”)(10) with regard to
the tax risk management and control system and the Tax
Transparency Report, in which all relevant tax aspects of
the Group are set out(11); (ii) the Holding’s Tax Affairs unit
to be tasked, among other things, with implementing theGroup’s tax strategy defined by the Board of Directors,

identifying, analyzing and managing the various optimization initiatives, monitoring the most significant tax issues,and providing support to the various Business Lines; (iii)
the Tax Affairs units in the different countries to act, alongside the Holding Company Staff Function, in accordancewith the values and principles set out in the tax strategy,
being in charge of compliance management and tax planning and monitoring activities at the local level.

Organization
Enel has adopted a set of rules, procedures and standards which are part of the Group’s wider organizationand control system and which are considered key pointsof reference that all parties, depending on their type of
relationship with the Group, are required to observe(12). The
various corporate policies and procedures applicable bothat Group and country level govern the activities, as well as
their management procedures and Tax Affairs responsibilities, including in relation to other corporate Functions.
These documents are published on the Company intranet
and are accessible to all Enel people. They form the general rules of conduct applicable within the Group when carrying out activities.
Specifically in relation to taxation, in addition to the tax
strategy there are specific organizational documents inforce – both at global and local level – regarding the processes of tax compliance, tax planning, transfer pricing,tax risk management and tax policy.
The general principle is that the Tax units must be of theappropriate size and equipped with the necessary skills
to perform the role of a decision-making analysis center
within the governance and business processes, in addition
to the role of compliance oversight. For this purpose, specific and ongoing training initiatives on tax issues at bothcountry and global level have been set up, with recurring
meetings between all of the Group’s Tax Managers in orderto ensure appropriate alignment. Still within the context
of the policies implemented for the management of Tax
personnel, a specific hiring process has been established,

to be followed when joining the Company and available
on the Company website, which is based on objective assessments. As regards the management of managers, also
within the tax department, succession plans are updated
annually aimed at identifying resources ready to covermanagerial positions in the short and medium term, supported by a specific development and empowerment path.
More generally, it is worth noting that the reference principles contained in the Group’s tax strategy have also
been included in the Enel Group’s new Global Framework
Agreement on fundamental rights and social dialogue(Global Framework Agreement), recently signed with therelevant Trade Union Federations, which confirms the centrality and universality of human, social and labor rights
within the Company, in accordance with the Group’s Human Rights Policy.
Enel is aware that an effective organizational and control
system must be supported by valid IT tools that allow thecollection, monitoring, management and verification ofcompliance of high-quality tax information in real time.
The implementation of this data and system digitalization
process is a continuous improvement process. The Groupaims to be at the forefront of the application of the best
and most modern digital development trends in tax. To thisend, a special interdisciplinary (Tax and IT) team works to
identify, develop and implement the best digital practices
in the area of taxation, in order to oversee the different tax(10) During 2023, the Board of Directors meeting was held on November 21, 2023.
(11) In particular, in order to implement the recommendations of the Corporate Governance Code, as well as to optimize its work, the Board of Directors ofEnel SpA has established an internal Control and Risk Committee. The Committee receives a constant flow of information regarding, for example: the risk
management and control system (including tax risk), the Tax Transparency Report, the Report on the tax risk management and control system in the context
of the regimes for cooperative compliance with the tax authorities and the tax strategy.
(12) For example: the Code of Ethics; the Zero Tolerance of Corruption Plan; the Enel Global Compliance Program (EGCP); Human Rights Policy, corporate policies, models and procedures; the tax strategy; the Internal Control and Risk Management System; the proxy system; the sanctions system referred to in
the applicable national collective Labor agreements; any other documentation relating to the current control systems; the relevant accounting standards;
procedures and IT applications.

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processes with an ex ante approach and thus minimize tax
risks (i.e., dashboards that provide the whole managementwith almost real time information on the trend, in the main

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Appendix

countries of operation, of a series of tax variables suchas: tax rate, tax litigation, tax compliance, intercompany
transactions, correctness of invoicing processes, etc.).

Tax risks
The Group has a more general risk governance model based on “6 pillars”(13) and a uniform taxonomy of risks(so-called “risk catalogue”), which also includes tax compliance in its tax compliance risk section. This risk governance model also defines the Risk Appetite Framework(RAF), which is the framework for determining risk appetite. In this context, minimizing the tax risk is one of theGroup’s objectives, which is disseminated top-down in all
countries, including by sharing the RAF, which is the general approach by which a low risk appetite is established,communicated and monitored.
In the taxation area more specifically, the Group has a Tax
Risk Policy and a Tax Control Framework (TCF) whose main
objective is to provide unambiguous and consistent guidance to the Tax Units in the management of tax issues.
In this regard, in accordance with the tax strategy, specific guidelines and methodological rules on evaluation
have been established so as to assess, monitor and manage the relevant tax risk for the companies consistently,
in the knowledge that the Group companies operating indifferent jurisdictions must adopt the TCF with respect forthe specific corporate context and domestic regulationsof each country in question.

The task of the TCF is to identify sources of tax risk toensure (i) effective and prompt management of tax compliance and (ii) that the choices made are not aggressive,
but rather prudent, in the presence of interpretative issues of an uncertain nature. Processes and activities havetherefore been mapped in order to weave a network ofrisk detectors associated with the resulting control measures. In particular, as the set of detectors and control
measures identify sources of risk, the TCF can perform abroad spectrum of control. As such, any materialization of
the tax risk can be intercepted and managed by each Tax
unit in question.
The TCF is also subjected to audit by the Internal Control System which recognizes its adequacy.
Furthermore, the effectiveness of the TCF and its ongoing updates is ensured through periodic monitoring of therisk map at a centralized level, as well as through the controls performed by the tax authorities under the cooperativecompliance regimes, where implemented. The outcome of
the monitoring of tax risks is periodically brought to the attention of the competent corporate bodies (Control and Risk
Committee(14)), with which the most significant positions andthe related mitigation actions are shared from time to time.

(13) Line of defense, Group Risk Committee, Specific risk committee, Risk Appetite Framework, Policy and Reporting.
(14) In particular, in order to implement the recommendations of the Corporate Governance Code, as well as to optimize its work, the Board of Directors ofEnel SpA has established an internal Control and Risk Committee. The Committee receives a constant flow of information regarding, for example: the risk
management and control system (including tax risk), the Tax Transparency Report, the Report on the tax risk management and control system in the context
of the regimes for cooperative compliance with the tax authorities and the tax strategy.

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Tax Risk Policy – Risk management
DETECTION

MEASUREMENTMANAGEMENT

Constant detection during processes basedon risk maps in relation to sources and areasof risk (e.g., compliance and interpretation oftax regulations).

Tools to measure risk with defined metrics
that estimate its impact with reference tocertain materiality thresholds(15), while also
considering qualitative aspects (related tocorporate reputation and administrative/
civil/criminal liability).

In relation to the degree of exposure torisk, specific control measures must be
taken(16) to guarantee and duly document
the sharing of the tax position followinginternal decision-making escalation
processes, supported, where necessary, byexternal clearing(17).

Where applicable, the tax control system is subject to external certification, as in the case of Spain. In this regard,
the subsidiary Endesa obtained certification by AENOR(18)for its Tax Compliance Management System in accordancewith the requirements of the UNE 19602 standard. This tax
compliance certification represents one of the highest
standards by which Spanish companies can demonstratethat they prevent and mitigate tax risks by fully meeting
the requirements of UNE 19602(19). In Italy, the Revenue
Agency positively verified Enel’s integrated tax risk de-Participation in cooperativecompliance schemes
For companies that meet the legal requirements for participation, the Enel Group promotes participation in cooperative compliance schemes where they exist in thevarious countries in which it operates. In particular, Enelparticipates in the Collaborative Fulfillment (Adempimento
Collaborativo) scheme in Italy(21), for larger companies, inthe equivalent Code of Good Tax Practices in Spain (Código de Buenas Prácticas Tributarias(22)), France, and Portugal, and is collaborating with the federal tax authority in
Brazil in a pilot project for the creation of a local Cooperative Tax Compliance model (Projeto CONFIA – Conformidade Cooperativa Fiscal(23)).

tection, measurement, management and control systembefore admitting the companies to the cooperative compliance regime.
Following the results of the tax risk control activities, all uncertain tax positions and any disputes, relating to all typesof taxes, which exceed the materiality threshold and theprobability of a negative outcome envisaged by the IAS/IFRS principles, are represented in detail in the Integrated
Annual Report, to which you are referred.

COOPERATIVECOMPLIANCE INDEX(20):95%

In addition to the aforementioned countries, monitoringof the existence and potential membership of further cooperative compliance regimes in the countries of operation is ongoing.
Specifically in order to monitor the progress of this activity, an index (the Cooperative Compliance Index – CCI) was
developed to measure the participation of Enel Group companies in cooperative compliance regimes in various countries based on their size and membership requirements(24).

(15) For risks related to interpretation, the relevant Tax unit has to consider the relevance, certainty, reviewability and relative materiality of interpretative choices.
(16) With regard to compliance risk, the controls designed must achieve the goal of being considered generally capable of mitigating the relevant risks, so thatthe residual risk is within the tolerance area. If any further tax risks need to be mitigated, the Tax unit must: (i) activate adequate control mechanisms; (ii)help to update the tax risk map in order to avoid any repetition of the cases detected.
(17) External clearing generally refers to forms of advice requested from external professional firms for opinions on the validity of the interpretative solution(“more likely than not”), rulings and/or discussions in the context of cooperative compliance regimes, according to the local rules.
(18) AENOR (Asociación Española de Normalización y Certificación) is a leading body in the certification of management systems, products and services and is
responsible for the development and dissemination of UNE standards.
(19) UNE standard 19602, published in February 2019, sets out requirements and guidelines for companies to voluntarily adopt a system that reinforces tax
compliance best practices. The standard requires companies to identify and assess potential tax risks and to minimize them by establishing financial controls and due diligence processes for the organization’s exposed personnel and suppliers, as well as a channel for complaints and consultations.
(20) The CCI for 2023 is slightly down on the figure for 2022 (95.7%), due to the significant reduction in the Group’s revenues, mainly in Spain and Italy (countries
where numerous companies have joined the cooperative compliance regime), which is greater than in other countries. Despite the slight decrease in theindex, several additional companies have joined the cooperative compliance regimes in Italy and Portugal.
(21) https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/regime-di-adempimento-collaborativo/elenco-societa-ammesse-al-regime.
(22) https://sede.agenciatributaria.gob.es/Sede/colaborar-agencia-tributaria/relacion-cooperativa/foro-grandes-empresas/codigo-buenas-practicas-tributarias/adhesiones-codigo-buenas-practicas-tributarias.html.
(23) https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/confia.
(24) The index compares the revenues of companies that have joined the existing cooperative compliance schemes to those of all Enel companies legally eligible to join. The index does not consider countries in which the schemes have not been legally established, or companies that do not meet qualifications tojoin (e.g., because their size is below statutory thresholds), even though the schemes exist in their countries. Nevertheless, the Group’s overall coverage forthe year was more than 70% in terms of cooperative compliance companies’ revenues compared to the Group’s revenues.

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Appendix

Mechanism for stakeholder reports
For the Enel Group, tax compliance is considered a key
aspect of the Company’s ethical and accountable management. As such, breaches that can be reported throughthe Company’s internal channels also include those relating to tax. The Group’s Code of Ethics is the framework of“ethical management” which Enel operates, tying in fully
with the tax strategy. Provisions for violations of the Codeof Ethics are appropriate to ensure the effectiveness of

the requirements contained therein and should be understood to extend to the provisions of the tax strategy.
Additionally, all stakeholders can send in their remarks,
questions and opinions on tax issues using the contact information channels provided by Enel and available on thewebsite: (https://www.enel.com/media/explore and https://www.enel.com/investors/overview).

Transparent relations with stakeholders
The constant commitment of the Enel Group to transparency with respect to the tax authorities and all stakeholders concretely underlines the importance it attributes tothe tax variable and its role in the sustainable developmentof the Company. Therefore, the Group is committed toproviding a transparent explanation of the tax issues thatcan be of interest to third parties, also on its website, making the latter an information hub that is easily accessible
and understandable to all.
The Enel Group ensures transparency and integrity in its
relations with tax authorities, in the event of audits on boththe Group companies and third parties. To consolidate thistransparency with tax authorities, the Enel Group promotes engagement in cooperative compliance schemes
for companies that integrate the requirements of their respective domestic regulations in order to reinforce theirrelations. It also complies with the transfer pricing documentation provisions in accordance with OECD Guidelines, taking the “three-tiered approach”, divided into
Master File, Local File and Country-by-Country Report.
Moreover, to avoid double taxation, the Group promotes
amicable procedures for the settlement of international
disputes (Mutual Agreement Procedure – MAP) or bilateral agreements (Bilateral Advance Pricing Agreements –BAPA), which include the direct involvement of tax authorities from the contracting countries.
Furthermore, its commitment to transparency is also reflected with regard to customs. In this regard, some of themost active companies in dealing with customs authorities (Enel Global Trading SpA and Enel Produzione SpA)
obtained the status of Authorized Economic Operator(AEO) respectively in 2016 and 2015. Those qualified as an
AEO are deemed to be trustworthy entities due to themhaving demonstrated an adequate level of compliance of
their processes. Said qualification requires compliancewith certain criteria, including “customs and tax compliance”, to be demonstrated and maintained through an appropriate level of control and training.
Finally, in 2023, Enel was included for the first time in the
VBDO Tax Transparency Benchmark, an index that measures good tax governance practices for 116 listed companies(25), scoring 35 out of 40 points, ranking second
among European companies committed to tax transparency and first among Italian ones.
Even in the specific area of electric utilities, Enel was rated
among the best companies in terms of sustainability reporting on fiscal matters(26).
This commitment to transparency also extends to the Group’s
other listed companies. For example, Endesa has once again
topped the best practice ranking for transparency and tax
responsibility according to the Contribution and Transparency Report 2022 published by the Haz Foundation, while Enel
Américas and Enel Chile were the two Chilean companies
with the highest degree of compliance in the Chilean Corporate Fiscal Sustainability Report for 2021(27).

(25) The VBDO Association represents the interests of around 80 institutional investors and 500 private investors who want to contribute to the sustainable
development of the capital market. The Tax Transparency Benchmark 2023 report, now in its ninth edition, looked at companies headquartered in Belgium, Denmark, France, Germany, Italy, Spain, and Sweden that operate in the financial, energy, pharmaceutical, technology, and consumer goods sectors(https://www.vbdo.nl/wp-content/uploads/2023/11/Transparency-Benchmark-rapport-2023_def.pdf).
(26) Cfr. Prof. Manuel Castelo Branco, Prof. Delfina Gomes, Prof. Adelaide Martins, Exploring Tax-related Sustainability Reporting by Electric Utilities, in “Utilities
Policy”, of May 3, 2023.
(27) Based on the fiscal sustainability analysis published in 2023 by Prof. Antonio Faúndez-Ugalde of Pontificia Universidad Católica de Valparaíso.

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Tax advocacy
Enel consistently acts with a transparent and collaborative
approach with all national and international institutions
and trade associations to support the development of effective tax systems in the various countries where it operates. In this regard, please refer to the “Transparency ininstitutional processes” paragraph.
In particular, Enel supports fair, effective and stable tax
systems in order to reduce uncertainty for both governments and companies. Enel believes that a transparent
and coordinated approach between countries is essential
to improve the international tax system and it promotes aconsensual approach to regulatory choices. To this end, it
contributes by supporting governments and internationalorganizations through active participation in public consultation phases on new regulatory processes, where they
exist, either directly or through participation in various
national and international associations. Regularly sharing
knowledge and best practices through participation in national and international associations is essential in order tocontribute to the development of new regulatory procedures by providing qualified technical support on complex
business matters.
In this respect, the most representative organizationsin the various countries in which Enel has been involved
for years to support the evolving tax legislation are: Assonime(28), EuropeanIssuers(29), Confindustria(30), Foro deGrandes Empresas(31), SOFOFA(32), ICDT(33), ANDI(34), GE-

TAP(35), CONFIA(36), Acolgen(37) and Andesco(38).
With regard to tax responsibility and transparency, since2023, Enel has participated in a CSR Europe project(39) for acollaborative platform aimed at developing an index to assess the performance of companies in all sectors in termsof tax transparency and responsible fiscal behavior.
In 2019, furthermore, Enel joined the European Business
Tax Forum (EBTF), an association that aims to facilitatea public debate on taxation by providing a balanced andcomprehensive perspective of the taxes paid by companies. In view of this objective, tax information and data
are provided to the various stakeholders concerned. On
its website (https://ebtforum.org), the Forum continuously publishes various studies on tax transparency: Total Tax
Contribution(40), Best Practices for Good Tax Governance(41)and Tax Transparency and Country by Country Reporting.
In 2021, Enel signed up to the B Team Responsible Tax
Principles, namely, the principles developed by B Team(42)to promote responsible and sustainable tax practices for abetter future. B Team is an organization created by a groupof multinationals, with the contribution of civil society, investors and representatives of international institutions, inorder to promote responsible and sustainable tax practices.
Through its active and public participation in all theseassociations, Enel believes it can make its own technicalcontribution by sharing its experience in support of fair,effective and sustainable taxation.

Reporting
Acting with honesty and integrity is one of the main cornerstones of Enel tax strategy, as is its commitment totransparency.
The publication of Country-by-Country Reporting (CbCR)
supplemented with details of the overall tax contribution in the main economies in which the Group operates(hereafter also “Tax Transparency Report”), underlines theimportance that the Group attaches to tax related issues,

to their social role and, in general, to transparency as afactor that facilitates sustainable development.
The approach followed also aims to eliminate potential
ambiguities that may derive from complex accounting andtax treatments, while supporting and, at the same time,
improving other annual financial information and continuing along a pathway targeted at supplying an increasingly
in-depth and clear vision of Enel’s tax position.

(28) https://www.assonime.it/EN/Pages/Home.aspx.
(29) https://www.europeanissuers.eu/.
(30) https://www.confindustria.it/en.
(31) https://sede.agenciatributaria.gob.es/Sede/colaborar-agencia-tributaria/relacion-cooperativa/foro-grandes-empresas.html.
(32) Sociedad de Fomento Fabril, a trade union federation representing all industry and commerce in Chile: https://www.sofofa.cl/.
(33) Colombian Institute of Tax and Customs Law: https://icdt.co/.
(34) National Association of Industrialists in Colombia: www.andi.com.co/.
(35) Grupo de Estudos Tributários Aplicados (GETAP) in Brazil: https://www.getap.org.br/.
(36) Conformidade Cooperativa Fiscal (https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/confia) and with the main associations for the electricity sector in Brazil.
(37) Asociación Colombiana de Generadores de Energía Eléctrica: https://acolgen.org.co/.
(38) Asociación Nacional de Empresas de Servicios Públicos y Comunicaciones: https://andesco.org.co/.
(39) https://www.csreurope.org/newsbundle-articles/csr-europe-launches-new-collaborative-platform-on-tax-responsibility-and-transparency.
(40) Several studies have been published relating to the EU/EFTA Total Tax Contribution, which report the yearly aggregate data for the various types of taxes
paid by the largest European multinational companies by turnover and/or by stock market capitalization.
(41) The paper was drafted by a group of tax directors from three organizations (Tax Executives Council of the Conference Board, B Team and European Business Tax
Forum) to provide guidance on the best practices that multinationals can adopt in order to develop transparency and assurance vis-a-vis their stakeholders.
(42) https://bteam.org/.

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As of 2019 (FY2018-2017), Enel has adopted a Total Tax
Contribution model for the main countries where it operates, providing evidence of taxes paid and of withholding
tax deductions.
As of 2021 (FY2020), on the other hand, Enel has adopted
an integrated model: the Tax Transparency Report, which
is prepared in accordance with the rules set out for OECDCountry-by-Country Reporting(43) and includes informa-

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5

Appendixtion and data for Total Tax Contributions in the main countries where it operates.
The integrated model of the Tax Transparency Reportis available on Enel website (https://www.enel.com). The
Group believes that this model ensures a broad vision anda detailed measurement of the organization’s contributions to economic and social development in the regions/countries in which it operates.

Tax Transparency Report - principles
The Tax Transparency Report adopts the cash basis accounting criterion as a general principle for representing
tax data, considering it to be the most adequate for disclosing the actual tax contribution. More specifically, thetotal tax data, as defined and detailed in what follows, isdetermined through the various taxes paid(44) by all theentities in the scope of each tax jurisdiction in the year
subject to reporting, regardless of the tax year to which
the taxes refer.
As anticipated previously, on applying an approach adopted by the OECD(45), the Tax Transparency Report classifies
the different taxes into categories and distinguishes thembetween those that constitute an expense for the Company (taxes borne) and those that the Company pays due
to rebate mechanisms, substitution, etc. (taxes collected)
but that, at any rate, are the result of the Company’s own
economic activities. Specifically, taxes, both borne andcollected, are classified into the following five macro-categories.
Profit – Income taxes: this category includes taxes oncompany income that can be both borne (e.g., tax on
the income of companies at state or local level, taxes on
production, solidarity contributions, tax levied on income
deriving from specific activities such as the extraction ofnatural resources, the generation and sale of hydroelectricenergy as well as taxes withheld at source) and collected,
in the case where they are applied to a third party or to aphysical person (e.g., withholding taxes on interest income,royalties, subcontractors and suppliers). Income taxes do
not include taxes on dividends paid by Enel Group entities.
People – Taxes on labor: this category generally includes

taxes on labor, comprising those on incomes and social
welfare contributions. Taxes applied to the employer are
considered taxes borne (e.g., social welfare contributions,health insurance, pensions, disability contributions), while
income taxes applied to workers are considered as taxes collected (e.g., taxes on incomes of physical persons orsocial welfare contributions debited to workers that arenormally withheld by the employer).
Products – Taxes on products and services: indirect taxes applied on production, sale or use of goods and services, trade and international transactions. This category
includes taxes that can be paid by businesses with reference to their own consumption of goods and services, regardless of the fact that they are paid to the supplier ofthe goods and services rather than directly to the government. This category includes both Taxes Borne (e.g., taxes on consumption, turnover taxes, excise duties(46), customs duties, import duties, taxes on insurance contracts,
non-deductible VAT) as well as Taxes Collected (e.g., VAT
paid, excise duties(47), taxes on goods and services).
Property – Property taxes: taxes on property, the use ortransfer of property, plant and equipment or intangible assets. This category includes both taxes borne (e.g., taxes
on property and the use of real estate, capital tax appliedon the increase of risk capital, taxes on the transfer, purchase or sale of assets, net equity and capital transactions,stamp duty, stamp duty for the transfer of real estate,stamp duty for the transfer of shares, taxes on financialtransactions that imply loans or borrowings from a foreignsource), and taxes collected (e.g., taxes on leases collectedby the lessor and paid to the government).

(43) As of 2018, the Enel Group has presented Country-by-Country Reports – CbCRs (for the years 2016-2022) through the Italian Revenue Agency, which has inturn supplied them to the other States with which an agreement is in force for the exchange of information, in compliance with the indications of Action 13of the BEPS project, as amended. Action 13 is a project in which the OECD and the countries of the G20 have participated in order to reply in a coordinatedand shared manner to the strategies of aggressive tax planning put in place by MNEs with a view to “artificially shifting” profits in jurisdictions characterized
as tax havens.
(44) The data for taxes paid includes payments on account, taxes for previous years, including after assessments, net of repayments and redemptions obtained.
Interest and penalties are not considered.
(45) Working Paper no. 32, “Legal tax liability remittance responsibility and tax incidence”.
(46) With the exception of those recorded under environmental taxes (e.g., duties on gas and electric energy).
(47) With the exception of those recorded under environmental taxes (e.g., duties on gas and electric energy).

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Planet – Environmental taxes(48): these include taxes andduties on energy products (including fuel for vehicles), on
motor vehicles and transport services, and on the supply,use or consumption of goods and services consideredharmful to the environment, as well as the managementof waste, noise, water, land, soil, forests, biodiversity, wild
animals and fish stocks to be paid by the entity. Examplesof taxes borne are: taxes on the value of the generation ofelectricity, taxes on the production of nuclear fuels and carbon tax. Examples of taxes collected are: taxes on electricity, taxes on hydrocarbons and duties on gas and electricity.
Furthermore, the financial-equity data represented follow
the accounting requirements below.
Data source: the data represented in the report are expressed on the basis of IFRS-EU accounting principles
adopted by the Group and are at stand-alone entity level.
Subsequently, these data are aggregated by tax jurisdiction. To take account of intercompany relations, the data
are represented according to logic of aggregation by tax
jurisdiction (that is, the country in which the entities areresident for tax purposes and where they enjoy fiscal autonomy) and not according to a logic of consolidation.
Entities within the scope: falling within the scope of thereport are all those companies consolidated using the fullconsolidation method or the proportional method (hereafter also “entity within the scope”) on the basis of accounting principles used for the drafting of the Consolidated
Financial Statements on the part of the Ultimate Parent
Entity (Enel SpA)(49). With reference to the list of companies
in the Group and their activities, please refer to the specific prospectus in the Integrated Annual Report 2023(50).
Currency: the report considers the euro as the currency ofreference in that it is the one used by the Parent Company.
Since IFRS-EU accounting data are extracted in local currencies, economic data (such as revenues, Earnings Before
Taxes, taxes accrued and taxes paid) have been converted

into the euro at the average exchange rate of the currency,
while balance sheet data (property, plant and equipment)
have been converted into the euro at the exchange rate inforce at year’s end.
Third party revenues: the sum of Third party revenues accounted for by the entities within the scope in the pertinent tax jurisdiction in the reporting year. The term “revenues” is understood in the broadest possible(51) sense toinclude all revenues, comprising those from extraordinary
operations.
Cross-border intercompany revenues: the sum of revenues from transactions carried out between entities within the scope resident in different jurisdictions in the tax
reporting year, including income from extraordinary operations and excluding dividends(52).
In-Country intercompany revenues: the sum of revenues
from transactions carried out between entities within thescope resident in the same jurisdiction in the tax reporting
year, including income from extraordinary operations andexcluding dividends(53).
Profit (Loss) before income taxes: the sum of Profits(Losses) before income taxes generated in the year of reference and involving all entities within the scope in eachtax jurisdiction. The Profits (Losses) before income taxes
must include all items involving revenues and extraordinary costs(54).
Income taxes accrued for companies (current taxes): thesum of Current Taxes (i.e., for the year in progress) on Taxable Income in the reporting year of all entities within thescope in each tax jurisdiction, regardless of whether or notthey have been paid. The data for these does not take account of provisions for tax debts that are not yet certain
as regards either their amount or existence, of adjustmentof current taxes for previous years and of prepaid and deferred taxes. Income taxes do not include taxes on dividends paid by Enel Group entities.
Deferred taxes: the sum of deferred taxes on the tax-(48) The classification of taxes as environmental is based on the shared definition within the harmonized statistic framework developed jointly, in 1997, byEurostat, the European Commission, the Organisation for Economic Co-operation and Development (OECD), and the International Energy Agency (IEA),
according to which environmental taxes “are taxes whose tax base is a physical quantity (or the proxy of a physical quantity) of an element that has a provenand specific negative impact on the environment.(https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Environmental_tax). All taxes
on energy, transport, pollution and resources are included, whereas all taxes on added value are excluded. For further details, see: Eurostat, “Environmental
taxes – a statistical guideline”, par. 2.3 e 2.6 (https://ec.europa.eu/eurostat/documents/ 3859598/5936129/KS-GQ-13-005-EN.PDF); and OECD, Special
feature: Identifying environmentally-related tax revenues in Revenue Statistics (https://www.oecd-ilibrary.org////sites/52465399-en/index.html?itemId=/
content/component/52465399-en#).
(49) However, the companies consolidated using the equity method are excluded. Furthermore, the data of Permanent Establishments are reported in the jurisdiction of their operations and not in the jurisdiction of residence of associated companies. Therefore, the data of the latter do not include the data of
the Permanent Establishment. Finally, stateless companies in the Enel Group are flow-through entities incorporated in the same country in which income
is imputed and is effectively taxed in the partner company (e.g., the United States).
(50) See Assonime circular no. 1/2021. Gli obblighi di trasparenza in materia di tassazione nelle dichiarazioni non finanziarie secondo lo standard GRI 207(Transparency obligations in the matter of taxation in Non-Financial Disclosures according to standard GRI 207), where it is clarified that it is possible to
make reference to other sources (known as “incorporation by reference”) such as the Directors’ Report in the Consolidated Financial Statements or in theannexes for the list of Group companies and their main activities, and the Directors’ Report or other sections of the NFD with regard to information alreadycontained therein on uncertain tax positions and on any other information relevant for the purposes of GRI 207. With reference to the list of shareholdings,
it is confirmed that the country of the registered office shown also corresponds to the tax residence.
(51) Specifically, also included are (i) other income, (ii) all extraordinary income (e.g., capital gains from the sale of real estate, unrealized capital gains/capital
losses) and (iii) financial income (with the exception of dividends from other companies within the scope) or any extraordinary item. Revenues from Income
Taxes (deriving from deferred tax liabilities or from tax consolidation) are excluded.
(52) Revenues do not include payments received from other entities within the scope that are considered dividends in the tax jurisdiction of the paying subject.
(53) Revenues do not include payments received from other entities within the scope that are considered dividends in the tax jurisdiction of the paying subject.
(54) Consistent with the reporting criteria applied to revenues, profits (losses) before income taxes are indicated net of dividends paid by the companies within
the scope (as also indicated by the OECD in the report “Guidance on the Implementation of Country-by-Country Reporting” published in 2019 point II.7).

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able income in the reference year for all entities within
the scope in each tax jurisdiction. Deferred taxes are taxes paid in advance or which will be paid in the future andgenerated by temporary differences, which bring forward
or postpone taxation.
Tangible assets: the sum of net accountable values of tangible fixed assets resulting from the balance sheet, of allentities within the scope in each tax jurisdiction(55).
Number of employees and remuneration: the number of
employees at the end of the period considering all the entities within the scope; conversely, as regards their remu-

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Appendix

neration, please see the Sustainability Report as well as theTax Transparency Report.
Stated capital: the sum of the share capital and capitalreserves of all entities within the scope in each tax jurisdiction.
Accumulated earnings(56): this item represents the amountof net profit realized by the entities within the scope ineach tax jurisdiction over the past years, net of dividends
paid and any other reduction due to losses, capital increases, etc.

Tax Transparency Report – general analysis
TOTAL TAX CONTRIBUTION (MIL EUROS)
15,00013,23913,852

12,000
9,000

7,407

9,121

5,832

4,731

2023

2022

6,000
3,000

Total Taxes Borne

Total Taxes Collected

Total Tax Contribution

In 2023, the Total Tax Contribution(57) (TTC), with respect toall the countries in which the Group operates, was 13,239
million euros, down by a total of 613(58) million euros (-4.4%)
compared to 2022(59).
This trend is the result both of the increase in Taxes Borneand the reduction in Taxes Collected, which reflects the economic conditions of the reference market where lower volumes of energy were sold at decreasing average prices.
In this context, there was a significant overall contraction inindirect taxes related to revenues while there was (i) significant growth in taxes related to profits and (ii) a more moderate increase in labor and property taxes. More specifically, ananalysis of the Total Tax Contribution data broken down into
the five tax categories shows:a. a significant reduction in taxes on products and services,
mainly due to the aforementioned fall in revenues, partially
offset by the payment of an extraordinary solidarity contribution(60) in Spain;
b. an increase in taxes on profits due to (i) income generated
by extraordinary operations in Chile, (ii) the effects arisingfrom the income tax payment on account and balance
payment mechanisms(61) and (iii) the payment in Italy of thesolidarity contribution(62) and the extraordinary contribution to mitigate the high cost of utility bills(63);c. an overall reduction in environmental taxes, for the same
reasons that affected the value of taxes on products andservices;d. an overall trend in property taxes and labor taxes, consis-(55) Tangible fixed assets do not include cash and cash equivalents, intangible assets or financial assets.
(56) The introduction in the Sustainability Report of the disclosure on “Accumulated earnings” supplements the disclosure required by Directive 2013/34(amended by Directive (EU) 2021/2101) on the publication of income tax information (the so-called public CbCR). The information thus supplemented brings
forward the disclosure of such contents with respect to the terms established by article 48 octies of the aforementioned Directive.
(57) The Total Tax Contribution has been calculated considering the main countries in which the Group is present. These represent around 98% of revenues andmore than 99% of income taxes paid. However, for all other countries, corporate income taxes are shown in detail in the following tables. The scope of thecountries included in the calculation of the total 2023 tax contribution was slightly reduced compared to the previous year due to the exclusion of Romania
and Greece as a result of the sales that occurred during the year, which produced a restatement of the 2022 data. The following countries are included in
the TTC: Italy, Spain, Brazil, Colombia, Chile, Portugal, Peru, France, United States, Canada, Germany, Argentina, Panama, the Netherlands, Mexico, Guatemala, India, South Africa and Costa Rica.
(58) The sum or the difference between some values may not correspond to the total due to rounding.
(59) It should be noted that refinements and changes to the scope of consideration have been introduced for the purpose of preparing this section of the
document. The 2022 figures presented in this document may not coincide with that represented in the Enel Group’s “Sustainability Report 2022”.
(60) This is the contribution introduced in Spain by Law no. 38 of December 27, 2022.
(61) In the majority of countries where Enel operates, Income Taxes are paid for the reporting year based on the historical values of the previous year (so-called
historical method). Therefore, the financial effects of the overall value of Income Taxes for the reporting year are not fully known until the following year. In
some situations, however, as shown in the analysis below, income taxes on account are paid for the reporting year based on the projected results for thatyear (so-called forecast method). In such circumstances, the financial effects of income taxes are already reflected in the reference year, albeit not in their
entirety.
(62) Solidarity contribution required by Law no. 197 of December 29, 2022.
(63) Solidarity contribution borne by energy companies under Law no. 51 of May 20, 2022.

Tax transparency321

In general, the value of taxes paid highlights once again
the importance of the Group’s tax contribution to thecommunities and the economic and social systems of thecountries in which it operates, something which has become even more relevant as we face the challenges of the
post-pandemic period and the uncertainties caused by
the geopolitical situations in Ukraine and the Middle East.

tent with investment, employment and staff remunerationlevels.

TOTAL TAX CONTRIBUTION BY COUNTRY (MIL EUROS)
An analysis of the tax contribution from a geographicalperspective confirms that the distribution of taxes paid
is consistent with that of the revenues generated and the

ITALYnumber of staff employed: Italy, Spain and Brazil together
account for around 82% of the tax contribution, 78% ofrevenues and 80% of employees.

SPAIN
3,834

BRAZIL
1,017

5,753
1,919

1,511
2,782

1,765

COLOMBIA

2,343
832

PORTUGAL

CHILE
81

132
643

272
482

562

PERU
91

297

350

25

FRANCE

USA AND CANADA

191

56

285

201

194

10

GERMANYARGENTINA

145
89

117

PANAMA

63
118

4
86

1

23

NETHERLANDS26

MEXICO

330

GUATEMALA
5

17
23

10

21

20

4

INDIA

COSTA RICA

65

SOUTH AFRICA

4
7

4
7

1

3

7
3

TOTAL
7,407
13,2395,832
Total Taxes Borne (cash accounting)322

Sustainability Report 2023

Total Taxes Collected (cash accounting)Total Tax Contribution (cash accounting)1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

TAXES BORNE (MIL EUROS)
Income taxes

Property taxes

2023

Taxes on labor

364

Taxes on products and services

Environmental taxes

1,166

5,832
2,744

796

2022

352

762
1,006

4,731
1,896

2023-2022
849

805
13 160
-9

89

673

1,101

In 2023, the Total Taxes Borne(64) amounted to 5,831.9
million euros(65), an overall increase of 1,100.7 million euros (+23.3%) compared to 2022.
This increase affected most categories of taxes borne andespecially taxes on profits, taxes on products and services,and environmental taxes. There were smaller changes inproperty taxes (slightly up) and labor taxes (slightly down).
The amount of income taxes paid increased overall by 848.8
million euros. The largest increases were recorded in:i. Chile (+246.2 million euros), due to higher income fromthe proceeds of the sale of Enel Transmisión Chile, acompany that operated in the electricity transmission
business in Chile;ii. Spain (+224.5 million euros), as a result of (i) higher balances and advances paid in relation to the better final
results between 2022 and 2021 and the better results
expected for 2023 compared to 2022, respectively(66);(ii) new limitations introduced for 2023 on the use of tax
losses of companies participating in Endesa’s tax consolidation; and (iii) lower tax-deductible depreciation
and amortization in relation to coal-fired production
plants;iii. Italy (+146.2 million euros), due to (i) the payment of the2023 solidarity contribution on profits of companies
operating in the energy sector, as required by Law no.
197/2022, and the remaining portion of the extraordinary contribution for high bills in 2022, as required by
Law no. 51/2022 (+612.9 million euros in total), (ii) higher

withholdings on payments incurred abroad (+35.9 million euros) and (iii) lower IRES advances paid compared
to 2022(67) (-509.8 million euros);iv. Colombia (+129.7 million euros), due to an increase intaxable income and the tax rate between 2021 and
2022, the taxes for which were paid in 2023;
v. Peru (+54.6 million euros), mainly due to the effect ofgreater advance payments resulting from an increase
in income expected for 2023 compared to 2022;
vi. Brazil (+50.8 million euros), which was affected in 2022
by the change in the tax settlement mechanism(68), resulting in smaller payments. The amount of income taxes paid also reflects the increased taxable income.
For the sake of completeness, it should be pointed out
the lower income taxes paid in (i) Argentina (-14.7 million
euros), where the 2022 payments also included advances relating to companies subsequently sold (Enel Generación Costanera and Central Dock Sud), and (ii) Panama(-5.6 million euros), due to a reduction in taxable income
between 2021 and 2022, the taxes for which were paid in
2023.
The payment of taxes on products and services increased
by 160.1 million euros, as a result of:• higher payments in (i) Spain (+161.9 million euros), following the introduction of the “Gravamen temporaneo
energético”, an extraordinary solidarity contribution
related to sales made by companies operating in theenergy sector, and (ii) Colombia (+20.8 million euros),(64) Taxes Borne are taxes that constitute a cost to the company.
(65) For the countries covered by the TTC analysis, Taxes Borne include, among income taxes, specific taxes on corporate income (Corporate Income Tax) of
2,684.4 million euros in 2023 and 1,837.3 million euros in 2022.
(66) In this specific case, the advance payments (calculated using the forecasting method) paid in 2023 increased due to higher expected income in 2023 thanin 2022, while the balances paid in the same year increased due to higher taxable income between 2021 and 2022.
(67) In this specific case, the entities forming part of the national tax consolidation of Enel SpA in 2022 had paid significant advances (calculated on the basisof the forecast method) due to a greater income expected between 2022 and 2021, while in 2023 they paid reduced advances (calculated based on thehistorical method).
(68) Some Brazilian entities changed the frequency of income tax settlement from annual to quarterly during 2022. This change resulted in taxes relating to thelast quarter of 2022 being paid in January 2023.

Tax transparency323

mainly attributable to the non-deductible VAT on majorpurchases made;• lower payments in (i) Chile (-11.8 million euros), where
stamp duty had been paid on financial transactionsin 2022, and (ii) Brazil (-11.6 million euros), where, following the sales of some companies, the payments of
the ICMS (“Imposto sobre Circulação de Mercadorias e
Serviços”) and the social taxes PIS (“Programa de Integração Social”) and COFINS (“Contribuição para Financiamento de Seguridade Social”) were reduced.
The payment of environmental taxes increased overall by
88.5 million euros. The most significant changes were recorded in:i. Italy (+63.3 million euros), due to excise duty payments oncoal relating to 2022, the year in which the outbreak of
the geopolitical crisis in Ukraine led to poor gas availability
with a resulting greater use of coal-fired generation;ii. Spain (+35.5 million euros) and Chile (-15.3 million),where in 2023 (for Spain) and 2022 (for Chile), taxes relating to previous years were paid following a redetermination of the same. The lower taxes paid in Chile in
2023 are also a consequence of the reduction in theenergy generated from thermoelectric sources.
The payment of property taxes increased overall by 12.8
million euros. The most significant increases were recorded (i) in Italy (+10.9 million euros), due to the tariffs of thesingle property fee being updated in line with inflation, and(ii) in the United States of America (+9.6 million euros) due
to the new renewable energy plants in the states of Texas
and Oklahoma coming into operation. Partially offsettingthese were the reductions in property taxes (i) in Brazil(-5.3 million euros), where one-off property taxes were
paid in 2022 in relation to financial operations (settlementof foreign financial debts and capital injection), and (ii) in
Spain (-2.1 million euros), due to the reduction in the tax
on the occupation of public land.

TAXES COLLECTED (MIL EUROS)
Income taxes

Property taxes

Taxes on labor

Taxes on products and services

Environmental taxes

2023
1

4,438

7,407
159

1,695

1,114

2022
1

6,043

9,121
173

1,843

1,061

2023-2022
0 -1,605
14
53

-148

1,714

Total Taxes Collected amounted to 7,407.5 million euros,
up 1,713.9 million euros (-18.8%) compared to 2022.
The reduction in tax collected is essentially due to the lower taxes on products and services, totaling 1,605.2 million
euros, and the lower environmental taxes for 148.3 million euros, both influenced by the significant contraction
in revenues due to (i) the lower quantities of energy produced and sold, (ii) decreasing average sales prices and (iii)some companies exiting the Group’s scope(69).
More specifically, the decrease in taxes on products andservices was concentrated (i) in Spain (-679.3 million eu-ros), where payments decreased mainly due to the reduction in the VAT rate on natural gas starting from the monthof October 2022, (ii) in Brazil (-655.3 million euros), where
ICMS payments decreased due to lower revenues (following the exit from the Group scope of some entities sold in2022) and the reduction of the rate applied starting fromthe second half of 2022, (iii) in Italy (-269.3 million euros),
mainly due to the lower VAT advance payment for 2023,
determined on the basis of the historical method based on
the December 2022 payment, and iv) in Argentina (-83.8
million euros), where VAT payments and municipal taxes(69) Including Enel Goiás and CGT Fortaleza in Brazil and Enel Generación Costanera and Central Dock Sud in Argentina, sold in 2022.

324

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3

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reduced mainly due to the exit from the Group scope ofsome entities sold in 2022.
The reduction in environmental taxes instead mainly affected Italy (-145.9 million euros), where payments of theexcise duty on electricity, gas and the related regional surcharge decreased following the reduction in the quantities
of energy and gas sold between 2021 and 2022.
However, the following were recorded:i. higher taxes on products and services in France (+43.1
million euros) and Portugal (+19.2 million euros) andhigher environmental taxes in Germany (+16.8 million

4

Performance 2023

Another concise indicator of the tax
contribution for business income isrepresented by:

TOTAL TAX RATECURRENT INCOME TAX RATEThe Total Tax Contribution (TTC Rate)
index provides a concise and complete
measurement of the burden for all taxes
that the business has effectively paid and is
calculated as a percentage of Taxes Borne in
relation to Earnings Before such Taxes. The TT
rate for 2023 (55.8%) is substantially in line withthe average for the previous 5 years (53.7%)
due to an increase in taxes borne essentially
proportional to the increase in profit before
taxes borne.

At Group level, in 2023 the Current Income
Tax Rate, determined as the ratio of accrued
corporate income taxes (2.8 billion euros) toearnings before income taxes (7.3 billion euros),was 37.9%, higher than the average rate of theOECD Member States (23.7%)(72).

In line with OECD best practice(73), the following tables
show the figure for corporate income taxes paid on a cash
basis and the figure for current taxes booked on an accrual basis country by country. Current taxes represent taxes
calculated on the basis of income produced in the year
following the tax rules of each country and normally deviate from taxes paid in the same year in so far as the defin-

Appendix

euros), countries in which, compared to 2022, local
markets have shown a growth trend in sales that are
subject to these types of indirect taxes; andii. higher taxes on products and services in Chile (+52.2
million euros), where in 2022 VAT refunds were received
for previous overpayments and fewer VAT payments
were made due to increased purchases.
Finally, there were less significant changes affecting labortaxes (+53.1 million euros)(70) and taxes on profits (-13.6
million euros)(71).

A representative global and concise index
of the Group’s tax contribution from a cash
perspective is:

55.8%

5

37.9%

itive payment of the balance is made in the year followingthat in which they accrued. The trends of the two values
are substantially destined to realign over time.
In 2023, the current income taxes on a Group level wereequal to 2,767.7 million euros, whereas the income taxes
paid were equal to 2,707.3 million euros.

(70) The trend labor taxes is generally consistent with the dynamics of wages and employment levels, with taxes increasing mainly due to the combined effectof (i) higher payments in Italy (+45.0 million euros) and Spain (+17.9 million euros), countries in which, despite the slight reduction in employment levels at
the end of the year, wages increased due to contractual adjustments, and (ii) lower payments in Argentina (-12.3 million euros) and in the United States (-4.6
million euros) due to the reduction in staff employed.
(71) Taxes on profits fell due to lower taxes paid (i) in Italy (-24.5 million euros), where withholding taxes were paid in 2022 on transactions with foreign entities
not part of the Group, and (ii) in Argentina (-7.6 million euros), attributable to the lower withholdings applied on payments to suppliers due to the sale ofEnel Generación Costanera and Central Dock Sud. Partially offsetting this were the higher taxes paid in Chile (+16.8 million euros) due to the application ofwithholding taxes on the distribution of profits to foreign entities not part of the Group.
(72) Source OECD Stat, “Table II.1. Statutory corporate income tax rate – Combined corporate income tax rate.
(73) For the purposes of Country-by-Country Reporting (BEPS Project – Action 13).

Tax transparency

325

Tax Transparency Report - tables by geographical area
To ensure greater legibility and transparency, below are given the data of the single countries for 2023.
Europe – Main countries
UM

FranceGermany

Italy

Taxes Bornemil euros

10.1

0.8

1,918.8

Profit taxes

mil euros

8.2

0.5

1,077.0

mil euros

7.9

0.5

1,074.9

Property taxes

mil euros

0.0(1)-

163.1

Taxes on labormil euros

1.9

0.3

539.9

Taxes on products and services

mil euros

0.0

-

2.2

Environmental taxes

mil euros

0.0

-

136.7

Corporate Income Tax Paid

Taxes Collected

mil euros

190.9

116.9

3,834.4

Profit taxes

mil euros

-

-

2.6

Property taxes

mil euros---

Taxes on labormil euros

1.2

0.9

688.1

Taxes on products and services

mil euros

140.9

73.8

1,665.6

Environmental taxes

mil euros

48.8

42.3

1,478.1

Total Tax Contribution – TTC (cash basis accounting)mil euros

201.0

117.7

5,753.3

UM

FranceGermanyItaly

mil euros

1,245.9443.1

55,393.3

Cross-border intercompany revenues

mil euros

34.6

92.6

472.3

In-Country intercompany revenues

mil euros-

0.0

35,971.7

Economic data
Third party revenues

Earnings Before Taxes

mil euros

38.4

13.0

4,135.8

Corporate Income Tax Accrued

mil euros

10.3

4.0

1,587.2

Prepaid/Deferred Taxes

mil euros

1.4

4.1

169.2

Tangible assets

mil euros

3.6

0.2

34,178.9

Employees

no.

55

24

31,451

Accumulated earnings

mil euros

-0.0

-31.2

10,585.8

Stated capitalmil euros

2.7

51.2

54,102.2

TT Rate

%

25.0%

6.0%

38.5%

TTC in relation to revenues

%

15.7%

22.0%

10.3%

Taxes Borne in relation to revenues

%

0.8%

0.1%

3.4%

Taxes Collected in relation to revenues

%

14.9%

21.8%

6.9%

(1)

326

Values are stated in millions of euros; zero indicates a value lower than 100,000 euros.

Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Netherlands

Portugal

Spain

2023

2022

2023-2022

%

20.0

25.2

1,764.9

3,739.9

3,070.1

669.8

21.8%

19.8

24.2

481.9

1,611.6

1,223.8

387.8

31.7%

19.8

24.2

450.9

1,578.3

1,191.7

386.6

32.4%

-

0.0

97.1

260.2

251.4

8.8

3.5%

0.3

1.0

148.1

691.3

678.3

13.0

1.9%

-

-

470.8

473.0

311.6

161.4

51.8%

-

-

567.1

703.8

604.9

98.8

16.3%

3.4

271.6

1,016.9

5,434.1

6,456.5-1,022.4-15.8%

-

0.0

78.7

81.3

102.6

-21.3

-20.7%

-

0.1

0.3

0.5

0.3

0.2

54.6%

1.0

1.7

259.9

952.9

889.8

63.1

7.1%

1.5

257.7

581.2

2,720.7

3,634.5-913.8-25.1%

0.8

12.1

96.7

1,678.8

1,829.4-150.6

-8.2%

23.4

296.8

2,781.8

9,174.0

9,526.6-352.6-3.7%

Netherlands

Portugal

Spain

2023

2022

2023-2022%

1,465.8

1,015.3

25,625.2

85,188.6

146,562.8-61,374.2-41.9%

1,950.3

287.1-512.42,324.5

8,408.8-6,084.3-72.4%

1.8

0.2

13,423.1

49,396.9

76,150.7-26,753.8-35.1%

363.7

49.7

1,412.5

6,013.1

1,000.7

5,012.4

500.9%

66.0

11.2

119.9

1,798.6

1,732.4

66.2

3.8%

50.5

0.0

104.9

330.2

-81.7

411.9

504.2%

0.3

14.2

23,336.1

57,533.4

54,669.7

2,863.7

5.2%

18

96

9,347

40,991

41,320

-329

-0.8%

-429.313.5

32,373.0

42,511.8

43,763.6-1,251.8-2.9%

11,650.1

18.6

26,879.8

92,704.7

93,968.4-1,263.7

-1.3%

5.5%

49.6%

64.8%

0.7%

22.8%

11.1%

0.6%

1.9%

7.0%

0.1%

20.9%

4.0%

Tax transparency

327

Europe – Minor countries(74)Economic data

UM Greece Romania

Ireland

NorwayPolandTurkeyUnitedKingdom Russia

2023

2022

20232022%-1,026.8-28%

Third party
revenues

mil
euros

118.6

2,420.4

12.1

0.2

23.4

0.0

30.3

0.6 2,605.6 3,632.3

Cross-borderintercompany
revenues

mil
euros

6.9

10.0

4.4

0.5

0.3

0.6

0.7

0.1

23.6

108.2

-84.6

-78%

In-Country
intercompany
revenues

mil
euros

7.0

446.9

-

-

0.0

0.0

0.8

-

454.7

680.3

-225.6-33%

Earnings Before
Taxes

mil
euros

-1.7

302.8

1.7

-0.8

1.5

-4.5

-3.4

-1.8

294.0

-105.9

399.9

378%

Corporate Income
Tax Accrued

mil
euros

4.3

25.4

-

-

0.5

-

-

-2.5

27.8

31.6

-3.8

-12%

Prepaid/Deferred
Taxes

mil
euros

3.2

32.6

-0.1

-

1.5

-

-

-0.0

37.3

-42.3

79.6

188%

Corporate Income
Tax Paid

mil
euros

3.6

18.0

0.0

-

1.1

0.0

-

0.0

22.7

31.9

-9.2

-29%

Tangible assets

mil
euros

-

-

0.1

0.0

0.4

0.0

1.3

0.7

2.6 2,635.6-2,633.0-100%

Employees

no.

-

-

59

-

22

1

36

2

120

3,516

-3,396-97%

Accumulated
earnings

mil
euros

-

-

3.1

0.8

1.6

-5.8

-5.2

4.0

-1.6

937.3

-938.9-100%

Stated capital

mil
euros

-

-

41.8

4.2

6.1

1.3

24.9

1.7

80.1 1,972.8-1,892.8-96%(74) Beyond what is shown, in some tax jurisdictions the Group is present through entities in pre-operations phase and/or in liquidation and whose overall values
are immaterial. For this reason, these countries are not represented in the report. They are: Serbia, Slovakia and Sweden.

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4

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5

Appendix

North America – Main countries
UM USA&Canada

Mexico2023

2022

2023-2022%

Taxes Bornemil euros

89.1

3.9

93.0

84.4

8.6

10%

Profit taxes

mil euros

2.2

1.0

3.3

5.5

-2.2

-40%

mil euros

2.2

1.0

3.3

5.5

-2.2

-40%

Property taxes

mil euros

69.6

-

69.6

60.0

9.6

16%

Taxes on labormil euros

15.1

2.8

17.9

18.2

-0.3

-2%

Taxes on products and services

mil euros

2.2

-

2.2

0.7

1.5

228%

Environmental taxes

mil euros

-

0.0

0.0

0.0

-0.0

-20%

Taxes Collected

mil euros

55.9

16.7

72.7

78.2

-5.5

-7%

Profit taxes

mil euros

-

-

-

0.0

-0.0

-100%

Property taxes

mil euros

-

0.8

0.8

0.8

0.0

5%

Taxes on labormil euros

55.7

4.8

60.6

64.9

-4.3

-7%

Taxes on products and services

mil euros

0.2

11.1

11.3

12.5

-1.3

-10%

Environmental taxes

mil euros

-

-

-

-

-

-

Total Tax Contribution – TTC(cash basis accounting)mil euros

145.1

20.6

165.7

162.6

3.1

2%

UM USA&Canada

Mexico2023

2022

2023-2022

%

349.6

2,298.2

2,481.9-183.7-7%

Corporate Income Tax Paid

Economic data
Third party revenues

mil euros

1,948.6

Cross-border intercompany revenues

mil euros

92.5

13.7

106.2

65.4

40.8

62%

In-Country intercompany revenues

mil euros

746.6

145.3

891.9

581.3

310.5

53%

Earnings Before Taxes

mil euros-1,573.5-27.1-1,600.6-350.9-1,249.7-356%

Corporate Income Tax Accrued

mil euros

0.5

12.3

12.8

56.4

-43.6

-77%

Prepaid/Deferred Taxes

mil euros-255.1-24.8-279.9

-97.2

-183

-188%

Tangible assets

mil euros

11,987.9

831.4

12,819.2

13,687.6-868.3

-6%

no.

1,440

307

1,747

2,100

-353

-17%

Accumulated earnings

mil euros

1,301.8-565.9735.9

1,069.7-333.8-31%

Stated capitalmil euros

26,752.2

2,074.6

28,826.8

24,859.2

3,967.6

16%

Employees

TT Rate

%

n.a.

n.a.

TTC in relation to revenues

%

7.1%

5.7%

Taxes Borne in relation to revenues

%

4.4%

1.1%

Taxes Collected in relation to revenues

%

2.7%

4.6%

(1)

(1)

Due to negative Earnings Before Taxes Borne, the TT Rate has not been calculated.

Tax transparency

329

Latin America – Main countries
UM

Argentina

BrazilChile

Colombia

Taxes Bornemil euros

23.3

831.8

349.9

561.7

Profit taxes

mil euros

7.4

186.4

318.1

415.2

mil euros

5.4

186.4

318.1

391.8

Property taxes

mil euros

0.9

24.9

2.9

1.4

Taxes on labormil euros

8.1

57.4

-

16.5

Taxes on products and services

mil euros

5.5

563.0

6.1

97.9

Environmental taxes

mil euros

1.4

0.1

22.8

30.7

Taxes Collected

mil euros

63.0

1,511.4

131.8

81.2

Profit taxes

mil euros

3.0

16.1

26.6

22.6

Property taxes

mil euros

-

-

-

-

Taxes on labormil euros

6.4

43.6

21.4

13.2

Taxes on products and services

mil euros

53.6

1,451.6

83.9

29.3

Environmental taxes

mil euros

-

-

-

16.1

Total Tax Contribution – TTC (cash basis
accounting)mil euros

86.3

2,343.2

481.7

642.9

Corporate Income Tax Paid

Economic data

UM

Argentina

BrazilChile

Colombia

Third party revenues

mil euros

2,399.1

8,854.8

5,192.6

3,387.7

Cross-border intercompany revenues

mil euros

-

66.2

436.7

3.6

In-Country intercompany revenues

mil euros

21.9

710.2

1,571.1

10.2

Earnings Before Taxes

mil euros

140.1

624.6

648.9

797.8

Corporate Income Tax Accrued

mil euros

15.5

170.6

224.8

342.0

Prepaid/Deferred Taxes

mil euros

-9.0

21.8

-6.4

22.9

Tangible assets

mil euros

1,356.4

5,262.3

7,444.0

4,465.8

Employees

no.

3,646

8,145

2,091

2,281

Accumulated earnings

mil euros

280.3

659.0

3,123.4

1,106.9

Stated capitalmil euros

606.3

17,250.6

20,966.1

2,306.1

TT Rate

%

14.7%

65.5%

51.4%

58.0%

TTC in relation to revenues

%

3.6%

26.3%

8.6%

19.0%

Taxes Borne in relation to revenues

%

1.0%

9.3%

6.2%

16.6%

Taxes Collected in relation to revenues

%

2.6%

16.9%

2.3%

2.4%

(1)

(1)

Due to negative Earnings Before Taxes borne, the TT Rate has not been calculated.

330 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Costa Rica

GuatemalaPanama

Peru

2023

2022

2023-2022

%

3.1

5.3

25.8

193.9

1,994.8

1,574.8

420.0

27%

1.5

4.8

23.9

168.5

1,125.8

664.8

461.0

69%

0.7

4.7

23.9

168.5

1,099.4

638.6

460.8

72%

0.2

0.2

0.4

3.5

34.5

40.1

-5.6

-14%

0.7

0.3

0.5

2.4

85.9

108.1

-22.2

-21%

0.7

-

-

17.4

690.6

693.4

-2.9

0%

0.0

0.0

1.0

2.0

58.0

68.3

-10.3

-15%

3.6

4.9

3.9

90.9

1,890.7

2,576.5-685.7

-27%

0.0

1.1

3.2

1.5

74.1

66.8

7.3

11%

-

-

-

-

-

-

-

-

0.2

0.1

0.4

9.8

95.1

100.8

-5.6

-6%

3.4

3.8

0.2

79.6

1,705.3

2,395.0-689.7

-29%

-

-

-

-

16.1

13.9

2.3

0%

6.7

10.3

29.7

284.7

3,885.5

4,151.3-265.8-6%

Costa Rica

GuatemalaPanama

Peru

2023

2022

2023-2022

%

18.8

80.5

203.1

1,627.5

21,764.1

25,198.6-3,434.5

-14%

0.5

1.9

0.3

1.6

510.9

811.4

-300.5

-37%

5.8

35.3

22.6

226.4

2,603.5

2,849.4-245.8

-9%

-68.9

22.2

36.2

449.8

2,650.6

3,944.7-1,294.0

-33%

0.4

4.6

12.6

156.4

926.9

1,182.9-256.0

-22%

-0.7

-

1.6

7.3

37.4

151.5

-114.1

-75%

28.0

321.9

413.4

2,829.1

22,120.8

21,294.1

826.7

4%

32

92

92

1,091

17,47017,360

110

1%

-78.7

162.7

148.9

-875.6

4,526.9

3,157.1

1,370

43%

322.6

227.8

422.9

3,675.3

45,777.7

43,828.4

1,949

4%

n.a.

23.4%

67.7%

40.8%

34.9%

12.5%

14.6%

17.5%

16.1%

6.5%

12.7%

11.9%

18.8%

6.0%

1.9%

5.6%

Tax transparency

331

Latin America(75) – Minor countries
Economic data

UM

Uruguay

2023

2022

2023-2022%

Third party revenues

mil euros

0.3

0.3

0.3

-0.1

-17%

Cross-border intercompany revenues

mil euros

-

-

-

-

-

In-Country intercompany revenues

mil euros

-

-

-

-

-

Earnings Before Taxes

mil euros

-0.3

-0.3

-0.2

-0.0

-21%

Corporate Income Tax Accrued

mil euros

-

-

-

-

-

Prepaid/Deferred Taxes

mil euros

-0.1

-0.1

-0.0

-0.1

-93,929%

Corporate Income Tax Paidmil euros

0.0

0.0

0.2

-0.1

-93%

Tangible assets

mil euros

0.0

0.0

0.0

-0.0

-48%

no.

1

1

1

-

-

Accumulated earnings

mil euros

0.2

0.2

0.4

-0.2

-51%

Stated capitalmil euros

0.0

0.0

0.0

-0.0

-3%

Employees(75) Beyond what is shown, in some tax jurisdictions the Group is present through entities in pre-operations phase and/or in liquidation and whose overall values
are immaterial. For this reason, these countries are not represented in the report. They are: El Salvador.

332

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Africa and Oceania – Main countries
UM

South Africa

2023

2022

2023-2022%

Taxes Bornemil euros

2.8

2.8

0.1

2.7

2,174%

Profit taxes

mil euros

2.8

2.8

0.1

2.7

2,174%

mil euros

2.8

2.8

0.1

2.7

2,174%

Property taxes

mil euros

-

-

-

-

-

Taxes on labormil euros

-

-

-

-

-

Taxes on products and services

mil euros

-

-

-

-

-

Corporate Income Tax Paid

Environmental taxes

mil euros

-

-

-

-

-

Taxes Collected

mil euros

3.9

3.9

4.4

-0.5

-11%

Profit taxes

mil euros

0.4

0.4

0.4

0.0

13%

Property taxes

mil euros

-

-

-

-

-

Taxes on labormil euros

3.5

3.5

4.1

-0.5

-13%

Taxes on products and services

mil euros

-

-

-

-

-

Environmental taxes

mil euros

-

-

-

-

-

Total tax contribution (cash accounting) - TTC

mil euros

6.7

6.7

4.5

2.2

49%

Economic data

UM

South Africa

2023

2022

2023-2022%

Third party revenues

mil euros

90.0

90.0

120.5

-30.4

-25%

Cross-border intercompany revenues

mil euros

0.3

0.3

0.2

0.1

39%

In-Country intercompany revenues

mil euros

9.5

9.5

62.5

-53.0

-85%

Earnings Before Taxes

mil euros

-4.0

-4.0

-16.9

12.9

76%

Corporate Income Tax Accrued

mil euros

1.4

1.4

-

1.4

-

Prepaid/Deferred Taxes

mil euros

5.1

5.1

-0.3

5.4

1,999%

Tangible assets

mil euros

322.8

322.8

384.3

-61.5

-16%

no.

166

166

182

-16

-9%

Accumulated earnings

mil euros-181.2-181.2-166.3-15.0-9%Stated capitalmil euros

627

627

689.7

-62.7

-9%

Employees

TT Rate%n.a.

TTC in relation to revenues

%

7.5%

Taxes Borne in relation to revenues

%

3.1%

Taxes Collected in relation to revenues

%

4.3%

(1)

(1)

Due to negative Earnings Before Taxes borne, the TT Rate has not been calculated.

Africa and Oceania – Minor countries(76)Economic data

2023

2022

20232022

%

55.9

60.8

-4.9

-8%

1.9

-0.7

-35%

25.1

-6.3

-25%

0.9

3%

Australia

Third party revenues

mil euros

36.4

-

4.9

3.7

Cross-border intercompany revenues

mil euros

0.9

-

-

0.3

-

1.2

In-Country intercompany revenues

mil euros

18.5

-

-

-

0.3

18.8

Earnings Before Taxes

mil euros

-19.2

-0.3

-1.3

0.0

-6.2

-26.9

-27.7

Corporate Income Tax Accrued

mil euros

0.0

-

0.0

-

-

0.1

0.1

Prepaid/Deferred Taxes

mil euros

-

-

-

-

-1.7

-1.7

-2.8

1.1

Corporate Income Tax Paidmil euros

0.0

-

-

0.1

-

0.1

0.1

-0,0 -20%

Tangible assets

mil euros

12.6

0.0

0.8

0.4

17.3

31.1

362.0

no.

39

1

30

5

5

80

148

Employees

Kenya Morocco

New
Zealand Zambia

UM

10.9

-0.1 -50%-330.839%-91%-68 -46%

Accumulated earnings

mil euros

-3.2

-3.3

0.3

-0.2

-4.7

-11.2

-76.8

65.6

85%

Stated capitalmil euros

65.9

2.5

76.6

1.9

7.0

153.9

570.6

-416.7-73%(76) Beyond what is shown, in some tax jurisdictions the Group is present through entities in pre-operations phase and/or in liquidation and whose overall values
are immaterial. For this reason, these countries are not represented in the report. They are: Namibia, Ethiopia and Egypt.

Tax transparency

333

Asia – Main countries
UM

India

Taxes Bornemil euros

1.4

Profit taxes

mil euros

1.0

mil euros

0.6

Corporate Income Tax Paid

2023

2022

2023-2022

%

1.4

1.8

-0.3

-19%

1.0

1.4

-0.5

-34%

0.6

1.4

-0.7

-54%

Property taxes

mil euros

0.0

0.0

0.0

0.0

81%

Taxes on labormil euros

0.5

0.5

0.3

0.1

45%

Taxes on products and services

mil euros

-

-

-

-

-

Environmental taxes

mil euros

-

-

-

-

-

Taxes Collected

mil euros

6.0

6.0

5.8

0.2

4%

Profit taxes

mil euros

3.3

3.3

3.0

0.3

11%

Property taxes

mil euros

-

-

-

-

-

Taxes on labormil euros

2.1

2.1

1.7

0.4

23%

Taxes on products and services

mil euros

0.6

0.6

1.1

-0.5

-46%

Environmental taxes

mil euros

-

-

-

-

-

Total Tax Contribution – TTC (cash basis
accounting)mil euros

7.4

7.4

7.5

-0.1

-1%

UM

India

2023

2022

2023-2022%

Third party revenues

Economic data

mil euros

21.1

21.1

42.2

-21.0

-50%

Cross-border intercompany revenues

mil euros

12.6

12.6

9.0

3.7

41%

In-Country intercompany revenues

mil euros

1.4

1.4

7.0

-5.6

-80%

Earnings Before Taxes

mil euros

-10.1

-10.1

-20.7

10.7

51%

Corporate Income Tax Accrued

mil euros

0.1

0.1

-

0.1

-

Prepaid/Deferred Taxes

mil euros

-0.1

-0.1

1.5

-1.5

-104%

Tangible assets

mil euros

65.0

65.0

225.6

-160.6

-71%

no.

371

371

397

-26

-7%

Accumulated earnings

mil euros

-35.1

-35.1

-23.3

-11.8

-51%

Stated capital

190.8

210.9

-20.1

-10%

Japan Singapore

South
Korea Taiwan

Employees

mil euros

190.8

TT Rate(1)

%

n.a.

TTC in relation to revenues

%

22.0%

Taxes Borne in relation to revenues

%

4.2%

Taxes Collected in relation to revenues

%

17.8%

(1)

Due to negative Earnings Before Taxes Borne, the TT Rate has not been calculated.

Asia – Minor countries(77)Economic data

UM China Indonesia

Israel2023

2022

20232022%
28%

Third party revenues

mil euros

1.4

-

1.5

31.3

-0.0

28.4

3.0

65.6

51.2

14.4

Cross-border intercompany revenues

mil euros

1.2

-

-

0.1

-

0.1

0.1

1.6

0.7

0.9 130%

In-Country intercompany revenues

mil euros

-

-

-

-

-

0.0

-

0.0

0.0

-0.0 -23%

Earnings Before Taxes

mil euros

-2.5

-0.1

0.0

1.3

-1.1

-3.3

-2.5

-8.1

-9.1

0.9

Corporate Income Tax Accrued

mil euros

-

-

0.0

-

-0.0

0.1

-

0.1

-0.0

Prepaid/Deferred Taxes

mil euros

-

-

-

-1.1

-

-

-

-1.1

-

Corporate Income Tax Paidmil euros

-

-

-

0.0

-

0.1

-

0.1

0.0

0.1 231%

Tangible assets

mil euros

0.1

-

0.1

2.0

-

9.5

3.1

14.9

10.0

4.8

48%

no.

12

-

1

32

-

43

11.0

99

89

10

11%

Accumulated earnings

mil euros

-6.4

-3.0

-

1.3

-6.4

-24.5

-3.0

-41.9

-38.7

-3.2

-8%

Stated capitalmil euros

9.1

3.6

-

2.0

5.5

36.4

7.2

63.7

52.9

10.9

21%

Employees10%

0.1 970%-1.1-(77) Beyond what is shown, in some tax jurisdictions the Group is present through entities in pre-operations phase and/or in liquidation and whose overall values
are immaterial. For this reason, these countries are not represented in the report. They are: Saudi Arabia, Lebanon and Vietnam.

334 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Reconciliations with the 2023
Integrated Annual Report
In the following paragraphs, a reconciliation of data represented in the Tax Transparency Report is made with respect
to the contents of the 2023 Integrated Annual Report.
This reconciliation is necessary given the different meth-ods for drafting the Tax Transparency Report – which havebeen changed by the OECD rules for Country-by-Country
Reporting – with respect to the principles adopted for thedrafting of the Consolidated Financial Statements.
2023

mil euros
Tax Transparency
ReportIntegrated Annual
ReportDifference to bereconciled

Third party revenues

112,089

95,565-16,524

Earnings Before Taxes

7,306

7,416

110

Tangible assets

92,75689,801-2,955

2,707

2,958

251

Items subject to reconciliation

Taxes paid

Third party revenues
The deviations between the data given in the Tax Transparency
Report and the data in the 2023 Integrated Annual Report are:i. Financial income (-6,166 million euros): for the purposes of the Integrated Annual Report the financial data
for financial income is entered in the financial statements on a specific line of the Income Statement thatis different than the “Revenues” item, which differs fromwhat is required under the OECD rules(78) applied for the
purposes of the Tax Transparency Report;
ii. Derivatives (-5,552 million euros): for the purposesof the Integrated Annual Report, the management ofderivative instruments is centralized within the trading companies that operate on behalf of the Group
companies in generation and marketing. Intercompany
transactions linked to this operation are eliminated forthe purposes of drafting the Financial Report but notfor the purposes of the Tax Transparency Report;iii. System charges (-2,547 million euros): the systemcharges that the Italian marketing companies re-invoice
to end customers, and which consist of the amount thatwas charged to them by the distribution companies, arethe subject of a finalized consolidation adjustment toalign mutual balances between companies belonging
to the same group. Therefore, intercompany economic
effects (i.e., revenues) are eliminated for the purposesof the Financial Report but not for the purposes of theTax Transparency Report;

iv. Revenue from Discontinued Operations(79) (-2,539 million euros): for the purposes of the Integrated Annual
Report, the revenues relating to Group components(branches, companies or geographical areas) that havebeen or are being disposed of are shown as a single
net amount in a separate line of the Income Statement,
while for the purposes of the Tax Transparency Report these revenues are analytically represented by thecompanies within the scope;
v. Fair value of companies consolidated using the equity method (239 million euros): for the purposes of theIntegrated Annual Report, the proceeds deriving fromremeasurements at fair value of companies valued using the equity method are included in the results for theperiod through consolidation entries. Vice versa, for the
purposes of the Tax Transparency Report, the proceeds
related to the companies consolidated using the equity
method are excluded as these entities are not relevant;vi. Dividends from companies consolidated using the equity method (-26 million euros): for purposes of the Integrated Annual Report, dividends received from consolidated companies(80) are eliminated. These revenues
are considered in the Tax Transparency Report;
vii.Other consolidation adjustments made on the basis of
the application of international accounting principles(67 million euros)(81).

(78) For the purposes of Country-by-Country Reporting (BEPS Project – Action 13).
(79) For more details regarding the definition of Discontinued Operations, refer to the Integrated Annual Report.
(80) Using the full, proportional and equity method.
(81) These include the following specific situations listed by way of example only: (i) elimination of intercompany margins and gains, (ii) recognition of any negative goodwill following M&A transactions (iii) capitalizations of financial expenses in cases of equity injection, (iv) adjustments to contracts with physicaldelivery stated at fair value and (v) changes in the consolidation scope during the year.

Tax transparency

335

2023
Third party revenues - Tax Transparency Report

112,089

Financial income-6,166

Derivatives-5,552

System charges-2,547

Revenues from discontinued operations-2,539Fair value of companies consolidated using the equity method

239

Dividends from companies consolidated using the equity method-26

Other consolidation adjustments

67

Revenues - Consolidated Financial Statements

95,565

Earnings Before Taxes
The deviations between the data given in the Tax Transparency Report and the data in the 2023 Integrated Annual
Report are:i. Impairment on shareholdings (1,169 million euros): theaccounting records for equity investments consolidated with the full method does not have an impact on
the Income Statement in the Annual Financial Report.
These accounting records however involve a reductionin profit before taxes for the purposes of the Tax Transparency Report;
ii. Derivative management (-707 million euros): for the
purpose of the Integrated Annual Report, the accounting records related to the Cash Flow Hedge reserve fora possibly different qualification of the derivatives between the stand alone view of the Company and thatof the Group do not have any impact on the Income
Statement. These accounting records however involvean increase in profit before taxes for the purposes of

the Tax Transparency Report;iii. Results from Discontinued Operations (-301 million
euros): for the purposes of the Integrated Annual Report, the results related to Group components (branches, companies or geographical areas) that have beenor are being discontinued are stated as a single net
amount on a separate line of the Income Statement,
whereas for the purposes of the Tax Transparency Report these revenues are represented analytically among
those of the companies within the scope;iv. Results from companies valued at equity (-42 million
euros): for the purposes of the Integrated Annual Report, the results from companies consolidated at equity
are included. Otherwise, these results are not considered in the Tax Transparency Report;
v. Other consolidation adjustments made on the basis of
the application of international accounting principles(-9 million euros)(82).

Tangible assets
The differences between the data given in the Tax Transparency Report and the data in the Integrated Annual Re-

port are due to Adjustments from consolidation (2,955
million euros)(83).
2023

Tangible assets - Tax Transparency Report

92,756

Adjustments from consolidation-2,955

Consolidated tangible assets

89,801(82) These include the following specific situations listed by way of example only: (i) adjustments for adaptation of value following impairment tests and consequent adjustments of depreciation and amortization, (ii) elimination of gains from intercompany sales of assets and consequent adjustments of depreciation and amortization, (iii) changes during the year in the scope of consolidation, (iv) provision (or release) of funds in the Income Statement, and (v)intercompany capital losses (capital gains).
(83) Adjustments due to the effects of (i) Purchase Price Allocations made during acquisition of controlling interests in companies, (ii) impairment of cash generating units, (iii) capitalizations of financial expenses of fixed assets realized internally, (iv) elimination of any gains during the sale of intercompany assetsand (v) elimination of effects related to Discontinued Operations and assets qualified as Available for Sale.

336 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix2023
Earnings Before Taxes - Tax Transparency Report

7,306

Impairment losses on shareholdings

1,169

Derivative management-707

Results from discontinued operations-301

Results from companies accounted for using the equity method-42

Other consolidation adjustments-9

Earnings Before Taxes - Consolidated Annual Report

7,416

Income taxes paid
The data of Income taxes paid for the purposes of the Integrated Annual Report is determined through the method of indirect recognition, provided for under international accounting principle IAS 7.
Contrarily, the Tax Transparency Report recognizes thedata for Income Taxes paid on the basis of informationcollected from the individual companies in the different
tax jurisdictions, consistent with the rules laid down by the
OSCE for Country-by-Country Reporting.
The deviation is due to the different methods of recognizing the data and to the principles to which they refer(84).

2023
Taxes paid - Tax Transparency Report
Differences due to the use of the indirect method for the purposes of the
cash flow statement
Taxes paid - Consolidated Annual Report

2,707
251
2,958

Tax Rate
With reference to the reconciliation between the theoretical and actual tax rate, reference should be made to theanalysis contained in the 2023 Integrated Annual Report.

(84) By way of example only, the differences in 2023 can mainly be attributed tot: (i) inclusion in the data of the Integrated Annual Report of the taxes related todividends (excluded from the data in the Tax Transparency Report) and (ii) changes during the year in the scope of consolidation.

Tax transparency

337

INNOVATIONINNOVATIONSUSTAINABILITY PLAN PILLARSUSTAINABLE DEVELOPMENT GOALS (SDGs)

SUSTAINABILITY PLAN PILLARSUSTAINABLE DEVELOPMENT GOALS (SDGs)

GROWTH ACCELERATORS• Innovation ACCELERATORSGROWTH• Innovation

Enel is committed to a resilient and sustainable energy system by developing and deploying new technologies, solutions andmodelsthat meetthea criteria
sustainability,competitiveness,safety andprotection
Enel is committ
ed toresilientof
andsustainable economic
energy system
by developingenvironmental
and deployingprotection,
new technologies,
solutionsandof the local
modelsthatareas.
meet the criteria of sustainability, economic competitiveness, environmental protection, safety and protectionof the local areas.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026
Plan,
whichtomay
redefined,
added, oroutdated withrespect
to the progress
previous Plan.
BelowSustainability
the 2023 results
relatedthebe
previous2023-2025
SustainabilityPlan,
the resulting
and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTS
2023
RESULTSINNOVATION AND SUSTAINABILITY

ACTIVITIESACTIVITIES

2024-2026
TARGETS2024-2026
TARGETS

MAIN
SDGs
MAIN
SDGs

INNOVATION AND SUSTAINABILITY

338

Proof of Concept to test innovative
solutions
Proof of Concept to test innovative
solutions

113 Proof of Concept
launched
113 Proof of Concept
launched

Innovative solutions being scaled up
in the business
Innovative solutions being scaled up
in the business46 solutions adopted in the

Launch of 200 Proof ofConcept to test innovative
Launchofin200ofsolutions
theProof2024-2026
Concept
totest
innovative
periodsolutions in the 2024-2026
period80 innovative solutions being
scaled up in the business to80
innovative
solutions being
boost
the implementationofscaledup in thebusinesstothe StrategicPlanin the 2024boost
the implementation of2026 period
the Strategic Plan in the 20242026 periodbusiness

46 solutions adopted in thebusiness

Goals

Progress

Goals

Progress

New

Redefined

Outdated

Not in line

In lineAchieved

New

Redefined

Outdated

Not in line

In lineAchieved

Sustainability Report 2023

9

17

9

17

9

17

9

17

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan
N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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4

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5

Appendix

INNOVATIONDMA EU (former EU8)

46

113

10

INNOVATIVE SOLUTIONS BEINGSCALED UP IN THE BUSINESSPROOF OF CONCEPTINNOVATION HUBS

60 in 2022

-23.3%

194 in 2022

-41.7%

35

58

PARTNERSHIPSFOR INNOVATIONCOLLABORATIONSLAUNCHED WITH STARTUPS

43 in 2022

-18.6%

119 in 2022

Innovation is a key element of Enel’s strategy and plays amajor role in creating shared value with different stakeholders, opening new horizons together with employees
and partners for the benefit of customers, the community
and the environment. A key factor in a resilient and sustainable future energy system is the development and deployment of new technologies, solutions and models thatmeet the criteria of sustainability, economic competitiveness, environmental protection, safety and security.
Priorities and the portfolio of innovation projects havebeen reshaped to support the new Group strategy; a new,simpler organizational structure has also been set up to

10 in 2022

0%

- 57.9%ensure operational effectiveness and to focus on the priorities of the business areas: increased efficiency, flexibility and resilience of operating assets, improved safetyof people, new energy storage technologies, reduced impacts on the environment and biodiversity of assets bothin operation and under construction, electrification ofcustomers, and innovative supply models to unlock newopportunities for the Group.
This is a process that leverages cutting-edge innovation,
passion and ideas, not only internally through upskilling
and reskilling strategies, but also outside of the Company.

Enel’s Open Innovability® to change
the future of energy
Enel’s open innovation model leverages several tools tofind solutions to business needs. The Company’s crowdsourcing activity consists of publishing online – throughthe openinnovability.com platform – specific challenges
addressed to audiences both external and internal to Enel,with the aim of attracting the best talents, ideas and technologies, to provide new solutions that will evolve within
the Group. This way, all areas of the Company come into
contact with startups, industrial partners, small and medium-sized enterprises (SMEs), research centers, universities, and entrepreneurs. Launched in 2017, the openinnovability.com platform brought together more than 220
challenges, including over 40 in the past 2 years, and over

15,000 evaluated opportunities. In the past year, public
challenges for which the most solutions were proposed
include: innovative ways to improve albedo in solar generation plants, sustainable approaches for reusing concrete, a new design for primary and secondary substations. Those who put forward solutions can win monetaryawards or start collaborations with the Group.
Enel has a global network of Innovation Hubs and Labs to
expand the Group’s vision, promoting innovation and sustainability. The Hubs are located in some of the Group’s
key innovation ecosystems, such as the United States andEurope. They manage a network of relationships with all
stakeholders involved in innovation activities, serving as

Innovation339

the main source of scouting for startups and SMEs, andfostering financially, environmentally and socially sustainable solutions. The Labs (located mainly in Italy and Israel)
make it possible for startups to work alongside the technicians and experts of Enel’s Business Lines to develop andtest solutions in the most fertile environment possible.
Open innovation also means creating partnerships withkey players. Enel is currently engaged in 35 innovation
collaborations covering the most strategic areas for theGroup; these focus on cutting-edge topics such as promoting space applications in the energy sector (ESA andThales Alenia Space) and co-developing innovative digitalsolutions (Cisco and Microsoft). Co-development with
suppliers and industrial partners is one of the most interesting approaches in the Group’s strategy, making it
possible to develop innovative initiatives and services by
quickly and effectively targeting industrial implementationand leveraging existing skills and structures. It is a win-win
approach where Enel works with large industrial partners
by harnessing its resources to achieve a shared goal.
Dedicated cross-functional work groups (Innovation
Communities) have been set up, which take an innovative approach to tackling key topics for business and newtechnologies and to create value. Active communities cover the following topics: blockchain, drones, energy stor-age, metaverse, artificial intelligence (AI), robotics, sensors,
3D printing, hydrogen, generative design, wearables, materials and quantum computing. Other working groups
are dedicated to additive manufacturing, data monetization and machine learning. The Communities continuously
monitor potential technological improvements and sharenew useful business models, added value services and use
cases for types of technologies that could be adopted invarious Group areas.
Enel constantly promotes and spreads the culture, knowledge and practices of open innovation in the countries
where it operates, fostering a “learning by doing” approach
which allows people to think and act differently and disseminate methods and tools that generate new ideas andsupport their development. There are many tools and initiatives for innovation that are useful for the disseminationof the open innovation culture. In addition to the recurring
newsletters, surveys and webinars, periodic meetings areheld with all Business Lines on many levels, not just managerial, but also with the non-hierarchical communities.
The necessary resources are made available for promoting a culture of knowledge and enhancing its value at alllevels, increasing awareness among people also thanks totraining courses, events and meetings.

A new practice forsustainable innovation
management
A critical success factor is the ability to manage innovation
as a system (a strategic topic for organizations and businesses) and to organize all stages of the process.
In 2022, Enel voluntarily adopted the ISO 56002 standard,
which governs all aspects of innovation management,from the inception of an idea through to its implementation on a global scale.
In December 2023, UNI/PdR Practice 155 “Sustainable
innovation management – Guidelines for the management of sustainable innovation processes in companies
through open innovation” was published, which was developed by Enel experts in collaboration with the Italianstandards body UNI. This (pre-regulatory) document aims
to provide practical support for all organizations that wish
to address the organizational and production changes
necessary to implement an effective sustainable innova-

340 Sustainability Report 2023

tion management process internally.
Based on the principles and framework provided by
the ISO 56000 series of standards (in particular UNI
EN ISO 56000:2021, UNI EN ISO 56002:2021, UNI EN
ISO 56003:2021, UNI EN ISO 56005:2021 and UNI ISO
56006:2022), the document offers guidance with establishing a sustainable innovation plan, identifying specificneeds and areas of opportunity, as well as with researching, validating, and developing industry-scale solutions. A
specific chapter of the document is devoted to researchsolutions tools and methods, including crowdsourcing,startups, innovation events, cross-functional working
groups, corporate entrepreneurship programs, and more.

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Appendix

How ideas are transformed into business solutions,creating shared value
Below are some examples of innovation projects focused on the Group’s strategic priorities.

INCREASED EFFICIENCY, FLEXIBILITY ANDRESILIENCE OF OPERATING ASSETSNEW AND INCREASINGLY SUSTAINABLE
ENERGY STORAGE TECHNOLOGIESIn 2023 a pre-commercial-scale testing campaign of a zinctechnology-based storage system was launched at theEnel Innovation Hub&Lab in Catania (Italy), to accelerate thepotential scale-up on the Enel Green Power business anddiversify the portfolio of energy storage solutions.
In Tuscany (Italy), experiments continued on the innovative
thermal storage system with a capacity of about 24 MWh,which uses common fragmented rocks that can store heatat about 500 °C with a storage duration of 5 hours. The

GREEN HYDROGEN FOR
DECARBONIZATION OF HARD-TO-ABATESECTORS
Enel has continued with its NextHy initiative, which aims tostimulate the growth of the entire green hydrogen ecosystem. The Hydrogen Industrial Lab in Sicily (Italy) will be themain hub, serving as an industrial technology validation
platform straddling the municipalities of Carlentini and
Sortino, with the aim of collaborating with startups andglobal players to test new technologies that can accelerate the reduction of green hydrogen costs and enable
the decarbonization of “hard-to-abate” sectors. NextHy

DIGITIZATION FOR THE ENERGY
TRANSITION
Maintaining responsible behaviors is key to ensuringsafety at every stage and place of work, which is why in2023 Enel Grids led the development of a virtual assistant in Italy, called Electra, which will be available from2024 and will make field operations safer and more ef-

system employs no critical materials, uses no potentiallypolluting substances, is inherently safe with no moving
parts or flammable substances and is, therefore, a sustainable solution for the decarbonization of industrial thermal
consumption.
A partnership was signed in 2023 to start testing (in one
Italian and four American plants) an advanced monitoringand diagnostic system for lithium battery systems, which
can simplify the collection and analysis of complex data,
improve safety and reduce operational risks to increase
performance and ensure high availability of storage systems, serving renewable energy resources.

Industrial Lab is one of the Italian projects which receives
IPCEI Hy2Tech funding, which has a total endowment of
4.5 billion euros made available by the European Union forthe development of hydrogen-focused initiatives of strategic interest.
The NextHy project also includes the NextHy Booster Program – an acceleration program promoted by Enel thataims to support the most promising startups in technology
scale-up and business model development. The program
engages with top scientific partners, such as the Polytechnic University of Turin, with which the first experimental
validation activities were launched in 2023 with the startups Power to Hydrogen and 1s1.

ficient. Electra can be consulted hands-free (making it
possible to keep protective gloves on during tasks) andwill act as a single point of access to work apps, simplifying and speeding up the acquisition of data needed
to perform tasks. Using artificial intelligence, it monitors
environmental noises and asks the operator to confirm
their state of health, and then handles any requests forhelp. The goal of the initiative was to create a kind of“digital barrier”, enabling people and vehicles to move

Innovation341

safely around work areas and construction sites. To ensure greater safety during operations, the APP5RO app
was also developed, which leverages the latest computer
vision and deep learning algorithms to alert operatives
in real time in the event of an electrical hazard (see thechapter on “Health and safety of people”).

AUTOMATION FOR EFFICIENCYAND SAFETY
An autonomous and sustainable robotic system has been
implemented at the Totana and Las Corchas photovoltaic
power plants in Spain to clean photovoltaic panels without
the use of water. The solution was developed in collaboration with Sicilian startup Reiwa and provides a significant
reduction in cost and related CO2 emissions, consuming
no water or diesel fuel, while at the same time increasing the safety and skills of staff. The Company is training
more qualified personnel (e.g., for on-site maintenance ofrobotic devices), with the creation of more highly-specialized jobs.
In the hydroelectric field, those at Enel Green Power haveinternally developed the Oculus robot, which can enhanceboth safety and efficiency in hydroelectric plants: in addition to speeding up inspection or investigation processes,
it reduces (or removes) the need for staff to perform spe-

HYDROELECTRIC FLEXIBILITY –INNOVATIVE MODELING OF THE FADALTOPOWER PLANT – BYPASS PROJECT
The idea stems from the well-established collaboration
between the Functions Global Energy and Commodity
Management & Chief Pricing Officer and Enel Green Power & Thermal Generation to re-evaluate and improve theefficiency of Italian hydroelectric storage systems. The
project will be completed in 2024 and involves the Fadalto
plant, located in the Veneto region of Italy, consisting of
two production and pumping units. It involves the installation of two hydraulic bypass lines on both units. The plant
is a pivotal element for the management of environmen-

342 Sustainability Report 2023

Thanks to artificial intelligence, since 2023 an innovative
tool for optimized management of spare parts inventories has been available for all Enel Green Power plants,
which uses mathematical algorithms and machine learning to automatically identify the optimal stock level ofeach item, resulting in significant cost and time savingscialized inspections, both in places that are difficult to access and in confined areas of hydroelectric plants such as
piezometric wells, tunnels and pipelines. The system was
optimized by design on the specific needs of the end user,and development was concluded with the production of
the first ten industrialized robots for the hydroelectric perimeter in Italy.
Through innovation, Enel Grids also aims to roll out increasingly cutting-edge and efficient solutions to improve
the safety of colleagues and partners. As such, in 2023
Enel Grids has developed a robotic solution to support
overhead maintenance activities on the Medium Voltage
overhead grid, which allows complex work to be performed
safely and eliminates the risks of falling from height andelectrocution. The innovative robotic system, controlled
by a ground-based operator, can handle a range of operations with a high degree of dexterity and support heavyloads. With a modular design, it can be installed on vehicles of different sizes to ensure access even in the mostinaccessible areas. A pilot project will arrive in Italy in 2024.

tal operating constraints of one of Italy’s largest hydroelectric rods; it also leads to an interconnection line withforeign countries (Soverzene-Lienz) which is particularly
important for the stability and safety of the Italian and European power grid. The operation and relative use of theplant in the electricity markets have always been highly
constrained, since the plant must constantly ensure hydraulic flows compatible with downstream irrigation uses,
but also tightly control the level of the Santa Croce lake
upstream (Veneto, Italy). With the new modeling, the production unit, in its “second life”, will be constantly available
to deliver all flexibility services, as well as more efficientand safer management of constraints with benefits also
for the various stakeholders in the watershed and for thesurrounding environment in general.

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Appendix

REDUCED IMPACTS OF ASSETS ON THE
ENVIRONMENT AND BIODIVERSITY

BIODIVERSITY
With the agrivoltaic demonstration program developed
simultaneously in several countries (Spain, Greece, theUnited States and Australia), Enel Green Power has shown
the effectiveness of integrating solar energy production,
agri-livestock activities, biodiversity conservation and improved ecosystem services, using innovative methodologies and technical solutions. Moreover, a new initiative
called Agrivoltaic Open Labs has been launched in Italy,
with the opening of five “open laboratories” to test different
innovative photovoltaic technologies, monitoring sensors
and coexistence methodologies with high-income crop
activities and biodiversity conservation measures. These
Open Labs make it possible to work together with the local area, promoting an open and collaborative approachwith local farms, beekeepers, universities, research centersand startups with specific expertise in these areas, as wellas engaging schools and other local entities in training andawareness-raising activities. Four Agrivoltaic Open Labs
were launched between September and December 2023
and are now operational. The first opened in Colfiorito, Um-

bria, at the La Valletta farm where vertical photovoltaic technology was integrated with arable crops such as PDO lentils. The second opened in Salaparuta, Sicily, at the Vaccaro
Winery, where vertical photovoltaic technology enabled
integration with a vineyard already in production. The third
was launched in Bastardo, Umbria, at Enel Green Power’s
first standard configuration agrivoltaic site, with the collaboration of the University of Tuscia, the Università Cattolicadel Sacro Cuore, the University of Perugia and the start-up
3Bee. This project is also supported within the framework of
the National Biodiversity Center (NBFC) – the first national
research center dedicated to biodiversity and coordinatedby the National Research Council (CNR), with funding fromthe National Recovery and Resilience Plan (PNRR). Lastly, thefourth was launched together with Enea in Portici, Campania, and is the first algovoltaic® plant integrating microalgae
culture with the photovoltaic plant. These initiatives will also
make it possible to put in place and validate innovative business models and new approaches to engaging key local
stakeholders. On agrivoltaics, see also the chapters “Roadmap towards natural capital conservation” and “Engaging
communities”.

CIRCULAR APPROACHESWith the Wind New Life project, Enel Green Power is supporting – together with other wind operators and specialized companies – the construction of a plant in Italy by2026 for the collection and treatment of decommissioned
wind turbine blades, which will be able to dispose of up
to 3,000 tons per year of composite material. The goal is
to turn fiberglass from end-of-life blades into secondary
raw material to be reused for the production of high-value
components, such as building materials, sanitary and furniture products, pipe insulation, and roadside cabinets. As
part of the project, a business model and basic economic
conditions were agreed upon in 2023.
Circular approaches have been adopted in the field of solar photovoltaics. Together with other companies and research institutes, Enel Green Power is participating in theEuropean project Photorama to help develop innovativetechnologies to recycle end-of-life photovoltaic products
and production waste. It aims to go beyond current recov-

ery levels to reach close to 95% of secondary raw materials, enabling the most valuable materials to be recovered.
Regarding Enel’s circular approach see also the chapter on“Circular economy”.

Innovation 343

SUPPORTING CUSTOMERELECTRIFICATIONSMART CITY
The Open Data 4 Smart & Sustainable Cities program designed by Enel X processes open data using ad hoc models to provide concrete support to government bodies
in directing urban planning actions. Enel X continued its
commitment in 2023, releasing the upgrade of the Circular City Index for all Italian municipalities, which estimatesreadiness in terms of policy and infrastructure enablingurban circularity, and the 15 Minute City Index, which analyzes urban planning of service proximity, in line with the
15 Minute City model. Also in 2023, the new CO2 City Index
was released, which integrates new data sources with experimental models, and provides an estimate of anthropo-

CUSTOMER CENTRICITY
Enel has adopted new approaches, such as neuroscience, to interpret customers’ physiological inputs, gain
insights into how business communications are understood, and simplify customer relations. In 2023, this study
helped improve the layout of the paper bill in Italy, reducing the format by one page and helping reduce the344 Sustainability Report 2023

genic CO2 emissions for Italian municipalities and their micro-districts, highlighting the main emitting sectors, fromprivate and public transport to industry and buildings.
All analyses are available in the Enel X YoUrban (Italy) portal– a single point of access allowing government bodies totake advantage of all Enel X solutions on the urban perimeter, from the digital management of faults in public
lighting systems through to the innovative City Analytics
solution for optimal urban planning. In 2023, a service wasalso made available for municipalities to design challenges
or activities relating to environmental and social sustainability issues, and to engage and reward the most virtuous citizens through the YoUrban app (see the chapter on“Customer centricity”).

costs and environmental impact of paper use. In 2023,
payment services in Colombia were further simplified. Aspart of the Botón de pago service, a QR Code supports
the customer by displaying a personalized page with theirdata, where they can digitally make a “one-click” payment – a simpler process that makes the service more
inclusive. To learn more about additional customer-focused initiatives, see the chapter on “Customer centricity”.

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Stakeholder engagement andmateriality analysis

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Appendix

NEW MODELS TO ENABLE NEWOPPORTUNITIES FOR THE GROUPOPTIMIZING WEATHER FORECASTING
AND NATURAL RESOURCE VARIABILITY
In 2023, a research collaboration between Intesa Sanpaolo and Enel Global Energy and Commodity Management and CPO helped develop a market-based hedging
algorithm for illiquid products, based on Intesa Sanpaolo
Group’s prior experience and machine learning techniques, along with a tool that jointly optimizes risk exposure and transaction costs. In addition to enhancing
the existing partnership between the two companies, thisproject has also been useful in benchmarking knowledge
toward investment banks and testing ways to leverage intellectual property through patents.
The primary objectives of Enel Global Energy and Com-

modity Management and CPO include optimizing thehydrological production management of Enel’s Italian
power plants, minimizing risks caused by natural resource variability, and improving market strategies. To
achieve this it is necessary to know not only the amountof expected rainfall, but also the volume of water in thesnowpack (Snow Water Equivalent) – an important temporary reserve of winter precipitation. Thanks to the callfor proposals launched with ESA (European Space Agency), 4 key solutions were tested in 2023 and a winner was
selected, with whom the Group is collaborating on thedevelopment of algorithms to estimate the water content in the Alpine snowpack via satellite and through innovative technologies.

RESILIENT NETWORKS“The development of new design systems forsecondary substations, based on the principles ofmodularity, efficiency and sustainability, pursues
Enel’s commitment to make increasingly versatile andinnovative tools to boost grid resilience and reliability”
Massimo Bartolucci
Head of Sustainable Technology andMaterials – Enel Grids
Enel Grids Innovation has undertaken a number of inimaterials making it possible to use 100% recycled matiatives for the technological and sustainable renewal
terial. Lastly, the new model ensures greater durabilityof electricity distribution networks, which are criticallyof components and improved safety, thanks to an optiimpacted by the energy transition. These include themized natural ventilation system, special anti-intrusion
initiative of researching innovative materials and dedoor closure, and enhanced ergonomics. The design ofsigns for two important components: the street box
the box has been filed by Enel, which is using the na<BOX2>secondary
SON ORLANDIS(BALEARI):A FLUSSOINTEGRATA
CON
andsubstation.
For theBATTERIA
first component,
the VANADIO
tionalsupply chain
to FOTOVOLTAICO
start production of the first 100
solution was developed from the concept design arisingunits, to be installed in many major Italian urban centers,from the challenge launched on the Enel Openinnovsuch as Florence, Bari, and Matera starting in 2023. New
ability® portal; it ensures adaptability to a wide range of
installations will continue in 2024.
environments, facilitates the functional aspects of use,
The new secondary substation solution – identified byfacilitates installation and maintenance thanks to modan external jury with representatives from academic,
ularity, and integrates a mix of reinforced thermoplastic
industrial, and professional spheres who selected theInnovation 345

winning design from the external innovation ecosystem – is a new model that uses a smaller number ofcomponents, as well as recycled and low-environmental-impact materials, with a modular approach toprovide great versatility and harmonious integration in

urban or rural, modern or historic contexts. The new
substation is also capable of accommodating advanced digitization technologies. The first substation
with this design will be installed in Italy in 2024 (see also
the chapter on “Circular economy”).

VANADIUM FLOW BATTERYINTEGRATED WITH
PHOTOVOLTAICS“The implementation of the Son Orlandis flow battery
plant is an important step forward in differentiating theportfolio of energy storage solutions”“

Pablo Fontela Martinez
Enel Green Power
Innovation Project Owner
In Son Orlandis, Spain on the island of Majorca, work
has been successfully completed on commissioning
the new vanadium electrolyte flow battery plant, developed by Largo Clean Energy, coupled with a photovoltaic system. The Son Orlandis storage facility has
a capacity of 1.1 MW and 5.5 MWh and is Enel’s firstexample of a utility-scale storage facility other thanlithium coupled with a renewable.
The flow batteries operate with a liquid electrolytethat is pumped from the reservoirs to the power cells
to generate (or absorb, depending on the charge ordischarge phase) electricity. Thanks to this project, theexperience that Enel has gained in the development,

346 Sustainability Report 2023

construction, commissioning and future operation of
the plant, can easily be extended to new types of flow
batteries with different electrolytes that are increasingly cheaper and more sustainable, such as ironbased or organic ones.
The technological differentiation of the portfolio ofstorage solutions makes it possible to increase competitiveness according to the specific requirements ofvarious use cases (e.g., provision of ancillary services to
the grid and energy shifting from the hours of highest
generation to those when generation is lower), thereby
improving socio-environmental sustainability and supply chain security.

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Stakeholder engagement andmateriality analysis

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Appendix

A DIGITAL ASSISTANT FOR
MONITORING WIND
POWER PLANTS

Daniele Stein
Enel Green Power
Innovation Project Owner

In Spain, as part of its Artificial Intelligence in Control
Room project, Enel Green Power has used artificial intelligence combined with robotic process automation
to provide a “virtual assistant”, which supports the decision-making of staff working in the control rooms ofEnel’s wind plants. The digital assistant is able to deal
with complex situations that are part of operators’ daily
routine, such as downtime, i.e., production stoppages
due to breakdowns, malfunctions, or other issues. The
system makes its assessments based on enormous
computing power, analyzing numerous variables within-depth knowledge of the machinery in each individual plant and of all processes managed by the control room, and continuously learns thanks to machinelearning processes. The solution is also being scaled-“In line with Enel Green Power’s mission, this project
improves the well-being and quality of life of ourcolleagues, which we feel is essential. At the same time,
it makes it possible to achieve important operational
objectives, improving the effectiveness and efficiency
of asset management and taking a significant step
forward in sustainability: for our colleagues and for thebest use of renewable facilities”

up in other countries. The project was developed androlled out thanks to the work of an international, multidisciplinary team made up of colleagues from Spain,
Italy and the United States, specializing in different
areas: data scientists, business and human behavior
experts. Room operators were also involved to define
the purpose, develop solutions and refine the user experience, i.e., interactions between artificial and human
intelligence.
It is now being considered whether to expand the project to technologies other than wind power: automating repetitive, low value-added tasks helps to reducestress (making the work more sustainable) and lowers
the chances of making mistakes (optimizing plant operation).

Intellectual property
Enel’s intellectual property portfolio (also referred to below as “IP”) includes a set of information for a sustainablegrowth. The Open Innovability® ecosystem fosters innovation by creating and sharing both internal and external solutions, leading to a stream of inventions that canbe procteted and valorized through intellectual property
rights.
In 2023, Enel consolidated and further streamlined its processes for managing the generation and use of intellectual property rights in Intellectual Property Management andTrade Secrets Management organizational procedures.

Both of these view human capital as an essential elementin the creation of IP and aim to incentivize employees participation in the inventive process, empowering them on
the strategic importance of all findings.
At the same time, Enel continued to design the digitization
processes of IP rights management as part of the aboveorganizational procedures. The use of proprietary digital
tools, in line with Enel’s specific needs, makes it possible
to streamline IP titles according to business strategy, reporting and ongoing monitoring of both the status of the
IP portfolio of the entire Group and codifying of intellec-

Innovation347

tual property rights originating from inventions developed
within Enel’s innovation ecosystem. This increases thetransparency of procedures and the reliability of internal
processes.
As of December 31, 2023, the Group owns 497 patents
for industrial invention, 292 of which are granted titles and
205 are pending applications, belonging to 170 patentfamilies, 16 utility models and 181 design registrations. In
addition, under Gridspertise (a joint venture company), according to a stewardship model on network management
techniques and platforms, there are 232 patents belonging to 15 patent families, 11 utility models and 64 design
registrations. Compared to the previous year, the change
in the Group’s IP portfolio is mainly due to Gridspertise being removed from the scope of consolidation, as well as
the outcome of the iterative rationalization activity of IP
titles carried out by the Group Functions to ensure constant alignment between the IP rights structure and strategic objectives. As a result, a limited number of expiring
titles were not renewed.
Together with the patents, utility models and designs, IP
rights also include copyrights, sui generis database rights
and trade secrets of a technical and commercial nature,
which are constantly codified and protected in line withthe requirements of the Trade Secrets Management organizational procedure.
In terms of trademarks, the Group holds 1,907 registrations, 1,617 of which have already been granted and 290
applications are pending. With particular regard to internal
IP generation, 70 inventions were proposed through thecorporate portal in 2023 (compared to 61 in 2022), following a now steady growth trend.
In 2023, IP protection activity continued in the Global Business Lines, Service and Staff Functions:• In Enel Grids and Innovability it is worth highlighting:®

i. two patent applications, as part of Grid Blue Sky
solutions, to protect innovative systems based on
algorithms for planning grid interventions, and toenable more efficient and precise management of
the electricity grid through timely interventions andreduction of waste, downtime and costs associatedwith repairs;
ii. a patent application covering a system for identifying
components and possible network anomalies throughthe use of aerial imagery and advanced algorithms.
This technology improves operational efficiency, reduces repair time, and helps ensure a more reliableenergy supply, thereby optimizing resource utilization
and reducing Enel’s overall environmental impact;iii. a patent application in the area of managing flexibility services for medium- and low-voltage users
connected to the distribution network in order to

348 Sustainability Report 2023

resolve operating problems relating to network congestion, voltage regulation and contingent faults;
iv. a patent application for a system to enable the detection of grid faults using medium-voltage line impedance analysis. This technology has the potential
to greatly improve grid restoration times, reducing
power outages and customer inconvenience, particularly during extreme weather events;
v. a patent application for a data clustering method to
optimize the organization of response teams in the
shortest time possible.

• In Enel X Global Retail, it is worth mentioning:i. a patent application for a method for calculating therisk of failure of a lighting system to make maintenance interventions more efficient and to predict theremaining life of particular public lighting systems,with economic and environmental impact benefits;
ii. the filing of a community design which protects thegraphic interfaces of the vivielettrico.it website – aportal dedicated to energy efficiency and to disseminating best practices to private users for achievingsavings in bills and approaching the energy change.

• In the field of electric mobility, new solutions have beenprotected with the filing of:i. a patent for a modular street substation with anelectric vehicle charging device (WayCabinet);
ii. a patent and a community design to protect thetechnology and aesthetics of a quick socket releasedevice, respectively;iii. a community design for a charging station with theshape of a rack arranged to accommodate micromobility vehicles such as bicycles or scooters (WayPad);
iv. a utility model and community design for the structure and particular configuration of a shelter with aphotovoltaic panel installation system for charging
micromobility vehicles (WayPark Micro).

• The following titles are highlighted in Enel Green Powerand Thermal Generation:i. in the photovoltaic sector, a patent application for apolymer formulation for the manufacture of specificplastic components of a photovoltaic module;
ii. in the wind and solar sector, a patent application
for a process automation method based on artificial
intelligence and robotic process automation; themethod assists control room operators in the optimized management of remote restarts, through amultivariable analysis and evaluation of business priorities based on the type of plant stoppage;iii. in agrivoltaics, a patent application for a technological integration of photovoltaic plants and microalgal
growth reactors to boost the environmental sustainability and social acceptability of the photovoltaic

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

plant with a high value-added solution, while alsosignificantly reducing CO2 emissions into the environment;
iv. a number of patent applications for industrial inventions have been filed in 3Sun, relating to the efficiencyof photovoltaic cells and manufacturing processes.

• Global Energy and Commodity Management has pro-tected, through the registration of two community designs, the special shapes of two high-voltage pylons
which improve the environmental impact in the area.
Also noteworthy is the authorial protection of the graphical interfaces of an app, which measures the energy
produced by renewable plants up to 10 MW in real time.

• Enel Global Services, in the area of environmental sus-

tainability, has produced a handbook containing guidelines for estimating the impact of digital technology interms of CO2 emissions, through an innovative calculation method. The benefit presented by this method,which is protected under copyright law, relates to theGroup’s zero emissions goal.
Through a patent application, the Brand Reputation Index has also been protected, which makes it possible
to: (i) measure reputational performance based on theexternal perception of the Enel brand; (ii) take measures
to manage Enel’s Top Management communication
plan; and (iii) prevent threats and risks to safeguard theGroup’s reputation.

• Global Customer Operations has protected, throughthe filing of a patent, the architecture of a data model(GCO Data Model) which enables the monitoring of theperformance of Group companies with regard to contract activation processes, billing, customer care, payment and credit management, as well as the analysisof the respective data. The graphical interface of themodel has been protected through a community design. In addition, the codifying activity was extended tofour software programs within the same platform, protected under copyright law, which enable (i) databasecreation, (ii) aggregation, (iii) virtualization, and (iv) datavisualization and analysis.

4

Performance 2023

5

Appendix• Lastly, with regard to the Group’s Staff Functions, it isnoted:
i. the filing of a patent application for the Climate Scenario Adaptation Model, a model that characterizes
the climate change resilience of industrial assets.
Specifically, the patent covers a method for generating risk maps of localized and distributed infrastructure in areas to be monitored;
ii. authorship protection on Economic CirculAbility©®
and Asset CirculAbility©® indicators, which make itpossible to measure the resources allocated by acompany to assess the increase in financial and industrial performance;iii. the Data Protection platform, protected under copyright law, which facilitates the process of defining
the processing of personal data by providing objective indications for the assessment of privacy risks
and supporting the business in managing data processes.
With regard to joint ventures, the Enel Group is applying
the stewardship model to continue its path of investment
and development in the intellectual property tied to technologies and platforms for grid infrastructure management, through the company Gridspertise.
In 2023, Enel continued its activities to protect the trademark portfolio owned by the Group. In this regard, theCompany filed the verbal trademark “Tutto Enel, è Formidabile” to distinguish and enhance the campaign ofcommercial offers launched by Enel, aimed at simplifying
the lives of the customers with new efficient, sustainable
solutions designed for different consumption needs, having Enel as a single interlocutor.
These activities consolidate the ongoing process of overall
portfolio protection and management, which in the first halfof 2023 led (among other things) to the application to register the Enel brand in the Special Register of Historic Brandsof National Interest, which has already been granted. Also
worth mentioning is the registration of the E-MIA Engagement – Materiality & Impact Analysis trademark, which aims
to support all users involved in the process of stakeholder
engagement and materiality analysis at Group level.

Innovation 349

DIGITALIZATIONDIGITALIZATIONDOUBLE
MATERIALITYDOUBLESUSTAINABILITYPLANPILLARSUSTAINABILITY

MATERIALITYSUSTAINABLE DEVELOPMENTGOALS(SDGs) DEVELOPMENTSUSTAINABLE

PLAN PILLARGOALS (SDGs)

GROWTHACCELERATORSGROWTH• Digitalization
ACCELERATORS

MATERIAL TOPICS:• Digital transformation

MATERIAL TOPICS:• Digital transformation• Digitalization

As cyber threats increase in sophistication, frequency and impact, Enel continues to act with an integrated approach, leveraging
people,technologies
processes toreduce the
risk.
Enel
is also continuing
to reduce
CO2 emisAs cyberthreatsincrease in andsophistication,
frequency
andcyber
impact,Enelcontinues
to act withitsanactions
integrated
approach,leversions
reducing
printed pages,
monitoringtoPC,
laptopthe
andmonitoroutsidenormalandagingbypeople,technologies
and processes
reducecyberrisk. power
Enel isconsumption
also continuing
its actions
toworkingreduce hours,
CO2 emisoptimizing
the
use
and
size
of
digitalplatforms
toreducetheenvironmental
impact.
sions by reducing printed pages, monitoring PC, laptop and monitor power consumption outside normal working hours, andoptimizing the use and size of digital platforms to reduce the environmental impact.
Below the 2023 results related to the previous 2023-2025 Sustainability Plan, the resulting progress and targets of the 20242026 Sustainability
Plan,whichtomay
redefined,
added, oroutdated withrespect
to the progress
previous Plan.
Below
the 2023 results
relatedthebe
previous2023-2025
SustainabilityPlan,
the resulting
and targets of the 20242026 Sustainability Plan, which may be redefined, added, or outdated with respect to the previous Plan.
2023
RESULTS
2023
RESULTSCYBER SECURITY

ACTIVITIESACTIVITIES

2024-2026
TARGETS2024-2026
TARGETS

MAIN
SDGs
MAIN
SDGs

CYBER SECURITY
Execution of cyber exercises involving
plants/industrial sites
Execution of cyber exercises involving
plants/industrial
sites
Cyber
security verifi
cation actions(Ethical Hacking, Vulnerability
Cyber security
verification actions
Assessment,
etc.)(Ethical Hacking, Vulnerability
Assessment,
Disseminatingetc.)
the information security
culture and changing people’s behavior
Disseminating
the information
securityin order to reducerisks
culture and changing people’s behavior
in order to reduce risks

67 cyber exercises performed

155 cyber exercises over theperiod 2024-2026(1)155 cyber exercises over the(1)
period verifi
2024-2026
3,600
cation actions in
the period 2024-2026(1)3,600 verification actions in
the period 2024-2026(1)45 cyber security knowledgesharing events in the period
45
cyber security knowledge2024-2026
sharing events in the period2024-2026

67 cyber exercises performed
1,861 verification actions
carried out
1,861 verification actions
carried out
19 cyber security knowledgesharing events held per year
19 cyber security knowledgesharing events held per year

4

9

4

9
9
9

4

9

4

9

DIGITAL SOLUTIONSDIGITAL SOLUTIONS

Activities to reduce CO2 emissions
Activities to reduce CO2 emissions-54.5 mil printed pages (vs2019)-54.5 mil printed pages (vs
2019)
6.9
mil meetings held via videoconferencing services
6.9 mil meetings held via videoconferencing
16.4
mil hoursservicesof downtime
outside normal working hours
16.4 mil hours of downtime
outsidenormalDigital
workinghours
65
new e-API
Ecosystem
interconnections
65 new e-API Digital Ecosysteminterconnections(1)

The target has been redefined for greater focus.

(1)

The target has been redefined for greater focus.

Goals

Progress

Goals

Progress

New

Redefined

Outdated

Not in line

In lineAchieved

New

Redefined

Outdated

Not in line

In lineAchieved

350 Sustainability Report 2023

-17 mil printed pages in 2026
(vs 2019)-17 mil printed pages in 2026
(vs2019) use of video
Extended
communication systems
Extended use of videocommunication
systems
Actions
to reduce
PC, laptop,
monitor hours of downtime
Actions to reduce PC, laptop,
monitorhoursDigitalof downtime
90
new e-API
Ecosystem
interconnections in the period
90
new e-API Digital Ecosystem2024-2026
interconnections in the period2024-2026

12 13
12 13
12 13
12 13
12 13
12 13
9

12

9

12

N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan
N.A. = not applicable, target not included in
the 2023-2025 Sustainability Plan

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to sustainable development

3

Stakeholder engagement andmateriality analysis

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Performance 2023

5

Appendix

DIGITALIZATION
67

1,861

19

CYBER
EXERCISESASSURANCE CHECKS(ETHICAL HACKING,VULNERABILITY ASSESSMENT)EVENTS TO RAISE AWARENESSOF CYBER SECURITY

50 in 2022

+34%

1,587 in 2022

Digital transformation is a key factor for companies in theenergy sector, as it can provide solutions and technologies
to meet the challenges of the energy transition, optimize
grid management, improve the customer experience, enable the development of renewable energy, and facilitate
the work experience, ensuring high levels of service andoperational efficiency. Through a new streamlined organizational and operational model, the Global Information &Communication Technology unit, within the Global Services+17.3%

19 in 2022

0%

Function, aims to:• ensure and increase the efficiency of the service levels
offered by Enel’s digital solutions;• increase effectiveness with a focus on demand management, adoption and recurring cost control processes;• enhance internalization, maintaining expertise on key
technologies through insourcing plans, increased training and tools to increase productivity.

EFFECTIVENESSGLOBAL ICTPRODUCTIVITY& INSOURCINGEFFICIENCY

Digitalization

351

Sustainable digital transformation
Digital technologies such as artificial intelligence, big data,
IoT and the cloud can generate major benefits in terms of
streamlining business processes, but attention must also
be paid to the impact they can have on the environment
and people. To achieve sustainable progress, Enel’s digital transformation therefore aims to use digital solutions
based on specific sustainability criteria. For this reason,
the main lines of action in 2023 addressed:• decarbonization and reduction of emissions linked todigital solutions;• circularity of the digital devices and materials comprising the digital assets of the Group;• promotion of social inclusion through the developmentof assistive technologies and solutions that ensure accessibility and generate value by meeting local needs;• promotion of best environmental performance andadoption of human rights principles with the suppliersof digital products and solutions.
Enel is also a promoter in Italy – together with the Foundation for Digital Sustainability – of the first UNI/PdR
147:2023 Reference Practice which sets out the requirements and guidelines for more sustainable and inclusive
by-design digital technology. The Practice identifies 58
sustainability indicators, which apply to all stages of thelife cycle of a digital transformation project: from initiation through to planning, execution and monitoring. The
indicators are tied to the Sustainable Development Goals(SDGs) to understand the extent to which a given digitaltransformation project is able to harness the full potential of digital technology, while meeting the economic,
social and environmental sustainability criteria. In partic-

Inclusiveness of web portals
to create value
Enel has developed a model to assess the web
portals available to customers and colleagues
in terms of digital inclusiveness, taking into
account the social, environmental and economic
sustainability impacts. The Inclusive Web Portal©
framework was codified through copyright in 2023;
it identifies 89 requirements, with user experience352

Sustainability Report 2023

ular, Enel has globally applied the Practice to the projectof digitizing meters for energy withdrawn and fed into thegrid. This highlights the strength of the goals of innovation(SDG 9), responsible consumption and economic growththrough software reuse (SDGs 8 and 12), while the gender equality of the predominantly male development teamemerged as a point of improvement (SDG 5). The Practice
was also applied to the Data Governance project for thedevelopment of a search engine to easily find active contract documents thanks to a series of filters on contract
metadata (contract date, supplier, products/services, etc.).
The strengths of the project include: the goals of innovation (SDG 9), knowledge sharing within the business community (SDGs 4 and 11), and good balance in terms of theworking hours needed for development activities (SDGs 3
and 8); whereas the goal to enhance the use of information, which is still not widely shared (SDG 12), emerged as apoint for improvement.
Lastly, in 2023 Enel globally launched a project to assess the
ethical risk in the Group’s use of artificial intelligence, inline with the requirements of new regulations at European
level (AI Act). The project highlighted the need to manage
the design of digital solutions based on a methodology toidentify the risks, social implications and impact of technologies, and to develop a compliance-by-design model
to define the most appropriate mitigation strategies forthe identified risks. As a result, a “recommendations” document was drafted for the Group, containing the points toconsider when designing new digital solutions.

and digital accessibility as key elements, which
aim to ensure digital inclusiveness. The framework
highlights persistent diversity, as well as different
abilities of circumstance, demographics, economic,
labor, cultural, linguistic, ethnic, and gender identity
diversity. The model makes it possible to identify theactions to be taken to promote a digitally inclusive
environment that can create value and meet theneeds of all stakeholders, so that no one is left
behind in the digital transformation process.

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to sustainable development

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Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Key drivers of the digital transformation
Circular transition of the digital value chain
Digital devices are made up of materials that, if not managed properly, can be harmful to the environment when
disposed of. Enel therefore implements a Group-levelstrategy to reduce risks and seize the opportunities arising from the management of digital devices. Incoming andoutgoing commodity flows are analyzed to establish theplanning requirements and assess the risks and impacts

of digital assets in terms of circularity. This analysis madeit possible to identify the main critical materials present in
the computers and monitors in the Company fleet (iron,copper, aluminum, and steel) and plan for the quantities
of critical materials needed by Enel up to 2030 (for moredetails see the chapter on “Circular economy”).

Enhancing digital devices through reuse and recycling
The process of decommissioning Company equipment
results in the production of waste materials that require
careful disposal methods. For this reason, the circularmanagement of digital assets in the Group’s various countries is achieved by helping to extend the useful life of thedevices, either through sale to employees and third parties
or donation to third sector entities, subject to a specificGroup procedure to promote reuse and, in turn, digital inclusion (17,880 devices sold in 2023 and 38 donated). As
an alternative, the Company promotes recycling of thesedevices (22 tons of recycled devices in 2023) which, being
categorized as e-waste, are disposed of at suppliers whopurchase the devices and then recycle them.

Data enhancement through sharing
The shift from monolithic architectures and data silos tosystemic, distributed and enterprise-wide models meansthat information can achieve greater scalability, quality
and speed of movement within an organization. Specifically, the e-API (Enel Application Programming Interface)ecosystem is the digital environment, consisting of software interfaces, through which all Group companies canquickly share information in real time that would normally

Environmental impact
of digital solutions
Digital technologies can help combat climatechange and help towards the energy transition by
providing solutions geared toward energy efficiency
and decarbonization; at the same time however,the same technologies generate emissions thatnegatively impact the environment. Enel’s Digital
Carbon Footprint Framework©, codified throughcopyright in 2023, made it possible to quantify theemissions produced by the digital solutions in use

remain confined to specific vertical applications (information silos). This ecosystem has helped speed up the adoption of digital solutions, reduce data redundancies within
the Group and, more generally, reduce the amount of timeand resources spent on exchanging flows of information.
In 2023, 65 new e-API interconnections to the Group’s applications were made, avoiding additional software development costs.

throughout the Group. In turn, an action plan was
drawn up geared toward containing and reducing
emissions through practices of optimizing cloud
sizing, increasing the renewable power supply of
digital infrastructure, and green coding – a softwaredevelopment mode that aims to limit the energy
consumption required to execute algorithms. This
led to a 36% reduction in CO2 emissions from digitalsources as of 2023 compared to 2018, a 206%
increase in the processing capacity of the Group’ssystems, and a 90% increase in data storage capacity.

Digitalization

353

Digital for people
Awareness for digital sustainability
A global internal communication campaign was carriedout in 2023 entitled “Sustainability by/in digital”, which
aimed to share a culture of digital sustainability among
Enel people, make known the impacts of digital behaviors
on the environment in terms of energy consumption andemissions generated, and raise awareness on the conscious use of digital technologies. The interactive campaign included the global publication of 3 news items on
the corporate intranet, which covered: the first UNI/PdR

147:2023 Reference Practice, which sets out requirements
and guidelines for more sustainable and inclusive digitaltechnology; the decalogue of actions to be implemented
to reduce the environmental impact of digital technology; and the guide on how to use new digital technologies
while limiting energy consumption and emissions. The
news items were accompanied by newsletters and surveys
inviting Enel people to test their knowledge on digital sustainability issues.

Digital accessibility for inclusion of vulnerable
colleagues and customers
Assistive technologies play a key role in enabling the inclusion and social participation of people with vulnerable
conditions, enabling them to overcome functional issues
and reduce dependence on third parties. For this reason,
Enel has drawn up a catalog of assistive hardware and software where Group people can obtain immediate technicalsupport through dedicated teams. Examples include Jaws,
a screen-reading program with speech synthesis for blind

354 Sustainability Report 2023

colleagues; Zoom text, which lets visually impaired colleagues zoom in on any on-screen application and change
the colors and shape of the mouse cursor; and Pedius,
which enables deaf colleagues to communicate throughspeech synthesis and speech recognition technologies sothat the user can use their natural voice or write. Lastly,
Veasyt is a professional sign language video interpreting
service (via web or app) for events and training.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

Virtual meetings

Printing service• 6.9 million meetings• 552,800 tons of CO avoided• 81 million printed pages• 6.4 tons of CO produced2

The printing service, which uses new generation printermodels for better eco-sustainability, continues to be inoperation at all Group offices. With a more rational useof printing thanks to increased awareness and document
digitalization, this system has enabled a reduction in paper
consumption over the years and, in turn, a lower impact on
the environment.
Services such as instant messaging (chat) and audio/video-conferencing take full advantage of the sharing model
which, through the internet, allows content to be sharedand enjoyed in real time from personal computers, smartphones or tablets, thereby reducing the need to travel and,in turn, lowering carbon dioxide emissions.

In 2023, monitoring continued of electricity consumption
outside normal working hours linked to the IT workstations(desktop computers, laptops, monitors) of Enel people
working in Italy. This was measured thanks to a Microsoft
function (System Center Configuration Manager) on theworkstations, which can identify when a workstation is5

Appendix

2

PC Power Management Italy• 16.4 million hours of non-use• 35.1 tons of CO produced2

on and not being used. Compared to previous years, idle
hours have increased due to the expanded scope of devices analyzed. Nevertheless, there is a steady decrease inemissions thanks to the higher energy performance of the
new PCs acquired in 2023.

1

Virtual meetings• 6.9 million meetings• 552,800 tons of CO avoided
2

Digitalization 355

Towards cyber-safe electrification
In the era of digital transformation, cyber security assumes a key role in ensuring the normal operation ofbusinesses, including in view of the significant increase incyber attacks as well as their level of sophistication andimpact.
Industry studies confirm that, in line with the trend of previous years, the perception of cyber risk is growing steadily, despite the fact that previous years have been strongly characterized by conflicts and geopolitical tensions.
National security agencies have therefore warned public
and private institutions of potential cyber threats against
critical infrastructure, often generated by activists fromnational and international organizations. Over the last few
years, many of the world’s major attacks have been carriedout by leveraging the supply chain and through compromised third parties, which allowed attackers to target the
primary target’s customers, partners and suppliers. This
caused a sharp rise in the number of victims and attacks
went increasingly undetected (the so-called “scale effect”).
It is also seen how the vulnerabilities detected in commonly used software products are continuously increasing andhow they are taken advantage of with greater speed by IT
criminals. In particular, the “zero-day” type vulnerabilities
represent a large risk because they are exploited by cybercriminals to carry out attacks before software developers
become aware of them and before they can release a corrective update (patch).
With reference to the energy sector, the majority of cyberattacks include ransomware, an increasingly used methodthat causes the exfiltration (unauthorized copy, transfer
or recovery) of the victim’s data and its encryption, which
gives the people responsible for the attack an additional lever for receiving payment of ransom. Along with thistype, 2023 saw an increase in social engineering attacks,
the first step performed by cyber criminals before launching the full-fledged attack. This type leverages the victim’s

difficulties in recognizing the attack, exploiting emotions
such as fear and a sense of urgency to push them into
performing a certain action (e.g., send money, divulge
sensitive information, or share login credentials). Furthermore, market analysis and studies affirm that there is ahigh probability of an increase in cyber threats over thefollowing few years due to an increasingly intensive use ofgenerative Artificial Intelligence on the part of cyber criminals to refine attack techniques by successfully exploiting
weaknesses linked to the human factor.
The global increase in cyber threats therefore constitutes
an important rick factor for the Group, in that cyber attacks could cause errors in the normal performance ofcorporate processes, with consequent inefficiencies, losses of customers, interruptions in power generation and of
business in general. In such circumstances, the Group may
not be able to conduct its normal operations in an effective manner.
To these challenges can be added the development of theregulatory landscape concerning cyber security, which
has led to the definition of complex and at times non-converging complex security requirements. Indeed, although
regulations address the same objectives, they define different formalities, deadlines and time frames, making thenecessary operations costly and complex.
In a similar context, for several years already Enel has adopted a strategic and integrated approach to the management of cyber risks. More specifically, a number of initiatives acting on the human factor (e.g., awareness campaigns and simulated phishing initiatives acting), throughthe implementation of technical protection solutions (e.g.,
antivirus, antispam, and multifactor authentication systems), and for the diffusion of cyber security principles
into corporate processes (e.g., power plant design andmaintenance, customer management and procurement)
have been implemented.

Policies and management models
In line with the needs of the energy industry, the Group
has adopted a systemic vision of cyber security issues,
as well as a global strategy of analysis, prevention andmanagement of cyber security events.
Since September 2016, a Cyber Security unit was established in the Global Information and Communication
Technology (GICT) Function reporting directly to the Chief
Information Officer (CIO) and whose manager has the roleof Group Chief Information Security Officer (CISO). The
unit is committed to ensuring the governance, direction

356 Sustainability Report 2023

and control of cyber security issues, establishing strategy, policies and guidelines in compliance with national
and international regulations, engineering support forthe protection of the Group’s environments, monitoringof the risk posture through checks based on processes
and technology, as well as monitoring and implementing
compliance requirements tied to cyber security regulations, and adopting technical solutions and procedures
to mitigate any weaknesses detected. The unit works insynergy with the Business Lines and with the technical1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

units responsible for system design and management,
thanks to the Cyber Security Risk Managers and Cyber
Security Response Managers. A valid approach to cyberrisk management must also attribute responsibility to
the Business Lines, facilitating well-grounded decisions
on the management and posture of the risk. CISO andthe Cyber Security Risk Managers also make up the Cyber Risks Operating Committee, which aims to evaluate
cyber risks across the business and determine the risk
acceptance criteria based on the Group’s risk posture.
The Cyber Security Committee, chaired by the Group’s
CEO and made up of his/her front lines, approves the cyber security strategy and periodically (at least annually)
checks its progress. In 2023, the Committee met once inJuly and for 2024 regular meetings are planned to bring
the strategy forward. All areas participate actively in implementing the cyber security strategy by way of an integrated operating plan in line with the Group’s objectives.
Moreover, the cyber risk and the cyber security strategy and related initiatives are the subject matter of constant in-depth analysis on the part of the main executive
bodies (e.g., the Board of Directors, the Control and Risk
Committee, the Board of Statutory Auditors, Supervisory Authorities, etc.) for all the legal entities and countries
where the Group is present.
Moreover, the Group policy adopted in 2017 (the “Cyber
Security Framework”) addresses the principles and operational processes that support a global strategy of risk
analysis, prevention and management. Based on a “sys-4Performance 2023

5

Appendix

temic” vision, this Framework applies across the more
traditional Information Technology (IT) sector, as well as
to Operational Technology (OT) environments tied to theindustrial world and the Internet of Things (IoT). In applying this framework, the Cyber Security Risk Management
method was also established. The method is applicable
to all IT, OT and IoT environments and includes all of thephases required to carry out a risk analysis and define therelated mitigation plan, in line with the stated cyber security goals. To balance the advantages obtained from theoperation and use of IT/OT/IoT systems with the risk thatcan potentially derive from them, well-informed, riskbased decisions are of fundamental importance.
Enel has also created a “Cyber Emergency ReadinessTeam” (CERT) to ensure proactive management and responses to cyber incidents, while encouraging collaboration and exchanges of information within a network ofaccredited international partners. Having entered into anagreement with the US national CERT, there are now 9
accreditations with Romania, Italy, Chile, Argentina, Peru,
Colombia, Brazil, Spain and the USA. The Group’s CERT
is also part of Trusted Introducer, a service that includes
508 CERTs in 75 countries. In September 2018, Enel alsojoined FIRST (Forum of Incident Response and Security
Teams), the largest and most widespread community inthe sector, with 710 members spread across 106 countries. The operational model of CERT H24 7/7 consists ofan in-house team of security analysts working in shifts.
This team is dedicated completely to the protection of
the Company from cyber security threats.

Definition of the IT security strategy
The cyber security strategy defines the objectives and priorities to direct and coordinate investment initiatives for
the Group as a whole, and to ensure adherence to cybersecurity policies, setting targets, management reporting,and constant monitoring of ongoing security activities.
This process is guided by CISO and uses close integrationand synergy with the various business areas, which communicate their needs, analyze opportunities, manage any
criticalities, and make proposals for initiatives.
Devising strategies is an iterative activity based on sharing

and consolidation of the Group’s risk posture target. The
various actors involved analyze the options and potential
initiatives within their respective business areas in order
to assess the feasibility and guarantee consensus and thenecessary funds. The Cyber Security unit guides the process and, together with the other key players, graduallyconsolidates aspects such as future scenario, objectives
and possible strategic initiatives in a cyber security strategy
proposal document, with a high-level budget estimate andprioritization.

Digitalization

357

Cyber security incident management
the protection services, each day in 2023 CERT blockedon average 1.1 million at risk emails, 46 viruses, 206 web
portal attacks, and 1.6 million connections to harmful
websites.

The multiplicity and complexity of the areas in which theGroup operates (data, industry and people) and of thetechnological components (e.g., business critical systems
such as SCADA – Supervisory Control and Data Acquisition, smart grids and smart meters) increasingly integrated into the Group’s digital life, have made it necessary toconfigure a structured cyber security system. This leads tothe need for a cyber defense model based on a systemic
vision that integrates the IT sector (starting from the cloud
down to the data center and mobile phone), the OT (everything concerning industrial sector, such as remote control
of power plants) and the IoT (extension of communication
and Artificial Intelligence to the world of things).
Through the monitoring systems, CERT collects 5 billion
events every day relating to the Company’s assets from 5
thousand data sources, correlates them through automatic analysis and on average produces daily 300 “incidents”.
These incidents are classified based on the Enel Cyber Impact Matrix (on a scale of 0 to 4), making use of the best
events correlation capabilities thanks to the adoption ofhighly advanced services.
The vast majority of “incidents” are classified as 0/1.
These have no significant impact on Group systems andare automatically or semi-automatically blocked and/or
managed by the existing Company defenses. In this way
they are able to prevent and/or mitigate the impact of potential cyber-attacks. Incidents classified as 2/3/4 have apotential impact on the Group and are managed by CERT
analysts, involving any stakeholders affected. Thanks to

During 2023 Enel’s CERT replied to 48 cyber security incidents with impact level 2; 2 incidents with impact level3; and 0 incidents with impact level 4, the highest one.
In the cases detected, to ensure an efficient and rapid
response and minimize the impact on people, services
and assets, all the relevant management procedures havebeen put in place. Specifically, when a cyber security incident becomes a potential data breach, the necessary
actions are taken immediately, in line with the Enel Group“Data Breach Management” policy. Should a crisis situation arise that threatens the Group’s business continuity,
assets, reputation and/or profitability, the appropriate actions are taken immediately, in line with the specific Group
policy on “Critical events management”.
Moreover, the “IT Service Continuity Management” policy
formalizes a process to bring the risk affecting the availability of IT infrastructure down to an acceptable level,
support business continuity requirements, and restore IT
services based on the results deriving from a Business Impact Analysis when a severe interruption occurs, including
when it is caused by an accident.
Below are given the details for the number of cyber security events recorded in 2023.

2023
Total number of cyber security breaches or other cyber security incidents

0

Total number of customers, consumers and employees impacted by data breaches affecting the Group(2)

0

(1)

(1)

The value reported for the KPI “Total number of cyber security breaches or other cyber security incidents” refers to level 4 cyber incidents (not including
possible violations deriving from “non digital” incidents).
(2) The value for the number of the KPI “Total number of customers, consumers and employees impacted by data breaches affecting the Group” concerns thenumber of customers, consumers and employees affected by level 4 cyber incidents.

358 Sustainability Report 2023

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2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Main projects and initiatives
All cyber security projects, programs and initiatives aredesigned to avoid, mitigate or remediate cyber security
risks for the entire Group. As a result, all activities are managed with a risk-based approach following the security

CYBER EXERCISESOver the past few years, cyber exercises have become
an integral part of activities aimed at preventing,responding to and managing cyber incidents.
These are specifically periodic exercises carried out
by simulating real cyber attacks (without impact
on systems or limitation to normal operations)and involve both technical facilities and relevant

CYBER SECURITY GLOBALREGULATORY COMPLIANCE
In recent years, there has been an evolution of thelegal and regulatory landscape in cyber security,
including in terms of the complexity of regulations.
The latter require cross-cutting fulfillments andat the same time improvements in governance,technical-specific requirements, periodic audits,
critical event notifications, and constraints andprovisions in the procurement of goods andservices, with continuous verification and adjustment
processes over time.
To handle this complexity and streamline initiatives
to achieve compliance in the area of criticalinfrastructure in the countries where the Groupby design principle to ensure a continuous due diligenceprocess that also includes self-assurance activities.
The most notable projects are detailed below.

businesses. The simulations performed aim to train
the responsiveness of stakeholders, verify processes
and technologies in the field, meet regulatory
requirements and generate awareness, thereby
targeting any needs for improvement of technicaland/or organizational aspects. Simulations are at all
times followed by an assessment that aims to analyze
their outcomes, from a quantitative and qualitative
point of view, providing possible “lessons learned”
insights where necessary. During 2023, 67 cyber
exercises were carried out globally. This confirms
the extent to which this activity has become anestablished practice in the Group.

is present, Enel has designed and managed astructured program to analyze, adapt and monitor
globally the regulatory requirements of different
compliance, ensuring and increasingly involving
the Business Lines. The program has identified
common global processes and tools, which havebeen implemented to meet both the common
requirements of all compliance issues and thespecifics of local regulations.
To support this process, an information system
named, the “Cyber Security Global Regulatory
Compliance Scheme”, has been designed andimplemented to analyze the numerous regulatory
requirements with respect to the Group’s Cyber
Security Framework, identifying any gaps there may
be both at the individual country regulatory level andat Group level.
With such a tool, it is possible to effectively andefficiently identify compliance measures to be
managed and monitored in the Cyber Security
Regulatory Compliance program.

Digitalization 359

PLAYBOOK ISO27001 –CERTIFICATION TO ISOSTANDARD
Enel has seized on the growing interest in the market
for ISO 27001 Information Security Certification.
Indeed, it has initiated certification paths to this ISO
standard by achieving it already for several Legal
Entities. Specifically, Enel X, Enel X Way, Gridspertise,
Enel Grids and Enel Global Services have achieved an
important milestone for the Group’s cyber security
by obtaining ISO 27001 certification. This importantachievement certifies the information security

management system for core processes, with aview to delivering trusted products and services tocustomers. Given the Group’s complexity, beginningfrom the experiences gained in leading the path tocertification to ISO 27001 standard of the Group’s
various Legal Entities, a digital management tool was
designed that makes the achievement of certification
efficient, repeatable, scalable and sustainable. The
tool, called the ISO 27001 Playbook, achieves anoperational benchmark for the Group, indicating
key information to be prepared during certificationand providing a map of Group requirements andprocesses. Specifically, the Playbook also equips
Legal Entities with a map of manager references andevidence of the Group’s cross-cutting processes,
enhancing and optimizing both the specificities of theBusiness Lines and the effort of the Global Areas thatserve the Group. transversally.

Collaborations with externalbodies and agencies
The network of relations with external entities and organizations is a key element in the cyber security strategy, toshare best practices and operational models, develop andstrengthen information sharing channels, and help establish standards and regulations. Feedback was provided
during 2023 to promote the standardization of the current cyber security regulatory landscape and the adoptionof a risk-based approach and the principle of security bydesign. This is in view of the difficulties in managing cybersecurity regulations globally, which are characterized bygreat heterogeneity in security requirements and methods of implementation. Taking into account the context ofregulatory compliance, no cases of non-compliance withstandards or cyber security regulations were detected in2023.
In recent years, a solid network has been established anddeveloped by interacting with key stakeholders in the energy sector such as ANEEL (Agência Nacional de Energia
Elétrica) and ONS (Operador Nacional do Sistema Elétrico) in Brazil and CNO (Consejo Nacional de Operación) in
Colombia. In 2023, the Group represented Eurelectric tosupport the European Commission in the harmonizationof cyber security legislation and standards within the Energy and Critical Infrastructure sector.
In Italy, a communication channel has also been established with the Agenzia per la Cybersicurezza Nazionale
ACN (Agency for national cybersecurity) to address cyber

360 Sustainability Report 2023

security challenges. More specifically, Enel is among thefour pilot companies that have participated in the project
aimed at the implementation of the Hyper SOC (Security
Operations Center), e.g., an infrastructure for the collection, correlation and analysis of events of interest, with thegoal of rapidly identifying emerging threats and coordinating responses to deal with them effectively. As a resultof this initiative, the first achievement was the activation of
the real-time information interchange portal with the ACN
to intercept possible complex attack patterns at an earlystage.
In addition, thanks to cooperation with other external
partners, the Cyber Harbour was inaugurated. This is aninnovation center that brings together cyber security experts, companies, investors and academia to foster the realization of innovative and competitive projects in the fieldof cyber security for the benefit of Italy’s economic andpolitical system.
In addition, Enel has participated in World Economic Forum working groups and contributed in recent years to
the publication of several reports, including “Cyber Resilience in the Electricity Ecosystem: Securing the Value
Chain”, “Cyber Resilience in the Electricity Industry: Analysis and Recommendations on Regulatory Practices for the
Public and Private Sectors” and “Cyber Resilience in theElectricity Industry: Facilitating Global Interoperability ofCyber Regulations in the Electricity Sector”.

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Performance 2023

5

AppendixTraining and information
The “Cyber Security Awareness Program” has become aconstant and ongoing initiative at Group level. It is used todisseminate a cyber security culture and raise awarenessof threats and attacks that exploit the human vector. Indeed, this program contributes to digitalization, in that it
creates a culture of IT security, changes the behavior of
people in order to reduce the cyber risk, develops technical IT security skills and makes people the first line ofCompany defense against cyber attacks. It uses various
communication channels and dissemination tools, including both communication campaigns as well as dedicated“THEREDPILL”
In 2023, cyber security awareness initiatives were
continued globally through the Group’s awarenessplatform “TheRedPill”. The aim of this platform is
to generate and enhance awareness of key cyberissues, address any upskilling and reskilling needs,
and teach people how to defend themselves against
cyber attacks. In particular, simulated phishingcampaigns (8 in 2023) proceeded targeting the entire

training initiatives for clusters of people. Specifically, 19
knowledge sharing events were held in 2023 on a Global
level on the issues of cyber security and various initiatives
were also held at local level to disseminate and increase
the culture of cyber security, with the objective of changing people’s behavior so as to reduce cyber risks.
Awareness initiatives were executed through “TheRedPill”,
the unique Group-wide platform through which the “People Cyber Empowerment Journey” program (consisting ofsimulated phishing campaigns and awareness modules) is
executed.

Enel corporate population and 19 events were heldto spread the culture of cyber security. Within the“People Cyber Empowerment Journey” awarenessprogram, launched in 2022, all of the 12 awarenesscampaigns planned were defined and launched.
Specific initiatives were also launched for new hires,with the goal of promoting cyber security awarenessfrom the early days of employment. These include
the “Cyber Security Essentials” course, designed
to provide the knowledge needed to address cybersecurity challenges and promote digital awareness, an
Anti-Phishing Module to recognize possible e-mails
with malicious content, and the inclusion of specificcontents related to cyber security in the Company’s“Welcome Book”.

Digitalization

361

362

Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

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Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

5.
APPENDIX● 5.1 Methodological note
● 5.2 Performance indicators● 5.3 Content Index• GRI and ESRS interoperability• SASB• TCFD• Sustainable finance disclosure regulation (PAI)● 5.4 European Taxonomy● 5.5 Sustainable Finance• Green Bond Report• Sustainability-Linked Financing Report363

METHODOLOGICAL
NOTE
2-1

2-2

2-3

2-4

2-5

2-29

3-1

Enel has published a Sustainability Report each year since2003, at the same time as the Group’s Integrated Annual
Report.
In compliance with the requirements of Italian Legislative
Decree 254 of December 30, 2016, “Implementation of Directive 2014/95/EU of the European Parliament and of theCouncil of October 22, 2014, amending Directive 2013/34/
EU as regards disclosure of non-financial and diversity information by certain large companies and groups”, Enelhas been publishing a Consolidated Non-Financial Statement (NFS) since 2017. The Sustainability Report has constituted Enel’s NFS with effect from the 2019 financial year.
Accordingly, from that financial year on, the NFS is no longer published as a separate document. This Report of theEnel Group at December 31, 2023 was therefore drawn
up in compliance with Italian Legislative Decree 254/16
and the 2019 Budget Act and it is a separate documentwith respect to the Report on Operations. The document
is published in the “Investors” section of the Enel website(www.enel.com).
The Sustainability Report 2023 is addressed to the EnelGroup’s stakeholders and is designed to present the actions taken in pursuit of the Group’s sustainability goals
and thus to respond to the legitimate expectations of all
stakeholders. It provides a complete overview of the mostInformation and in-depth analyses on the issues andindicators presented in this Report can be requested
from:

364 Sustainability Report 2023

3-2

significant impacts on the economy, the environmentand on the people of the Enel Group, including on humanrights and how the Group manages these impacts.
Compared to previous years, the structure of the document has been redefined by rearranging into 3 main
sections (environmental, social and governance) (ESG)the chapters that report the Group’s sustainability performance against material topics also in accordance with theEuropean Sustainability Reporting Standards (ESRS) issued by the European Financial Reporting Advisory Group(EFRAG). In addition, as of this year, reporting on a justtransition has been incorporated together with reportingon climate change into one chapter, namely, “Zero emissions ambition and just transition”.
To the extent necessary to ensure an understanding of
the Company’s activities, performance, results and impact,
this document covers environmental, social, labor, humanrights and active and passive anti-corruption topics thatare material to Enel, in view of the Company’s activities
and characteristics, according to the process described
below (see the chapter “Stakeholder engagement andmateriality analysis”).
The following table shows the areas required by Italian Legislative Decree 254/16, specifying the document
chapter in which they are discussed.

Enel SpA
Direzione “Enel Grids and Innovability”
Sustainability
Via Mantova, 2400198 Rome - Italy
Tel +39 06 83051
E-mail sustainability@enel.com
Web https://www.enel.com/investors/

1

Letter to stakeholders

Topic of the Report/
Legislative Decree
254/16ENVIRONMENT

2
Enel’s commitment
to sustainable development

Topic of the materiality
analysis3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Report Chapter

Risks

Policies andmanagement models

Activities and results

Decarbonization of theenergy mix

Zero emissions
ambition and justtransition

Chapter “Zeroemissions ambitionand just transition”

Chapter “Zeroemissions ambitionand just transition”

Chapter “Zeroemissions ambitionand just transition”

Conservation of
ecosystems andenvironmental
management

Roadmap towards
natural capitalconservation

Chapter “Sound
governance”

Chapter “Roadmap
towards natural capitalconservation”

Chapter “Roadmap
towards natural capitalconservation”

Engaging global andlocal communities

Engaging
communities

Chapter “Sound
governance”

Chapter “Engaging
communities”

Chapter “Engaging
communities”

Sustainable supply
chain

Sustainable supply
chain

Chapter “Sound
governance”

Chapter “Sustainablesupply chain”

Chapter “Sustainablesupply chain”

People management,
development andmotivation

Enel people

Chapter “Sound
governance”

Chapter “Enel people”

Chapter “Enel people”

Occupational healthand safety

Health and safety ofpeopleChapter “Sound
governance”

Chapter “Health andsafety of people”

Chapter “Health andsafety of people”

Chapter “Sound
governance”

Chapters “Managing
human rights” and“Sound governance”

Chapters “Managing
human rights” and“Sound governance”

Chapter “Sound
governance”

Chapter “Sound
governance”

Chapter “Sound
governance”

SOCIALEMPLOYMENT AND
LABOR-RELATEDSound governance andfair corporate conduct

People management,
development andmotivation

HUMAN RIGHTSEngaging global andlocal communities

Managing humanrightsSound governanceConservation of
the ecosystems
and environmental
management
Sustainable supply
chain

ACTIVE AND PASSIVE
Sound governance and
FIGHT AGAINST
fair corporate conduct
CORRUPTIONSound governance

Methodological note 365

How this document has been constructed
The Sustainability Report 2023 was prepared in compliance with the reporting standards “Consolidated set of
GRI Standards” defined by GRI in 2021 with the inclusion of
the GRI Universal Standard 2021, and also considering theElectric Utilities Disclosure supplement dedicated to thesector issued in 2013, also by GRI and still applicable today.
Moreover, for comprehensive reporting in relation to thematerial topics identified following the materiality analysis,
the directors deemed it necessary to include several additional disclosures, as more fully specified in this document.
This information, in compliance with standard GRI 1: Foundation 2021, the disclosures in question were subjected to the same technical rigor required by the reporting
standard adopted. The reporting standards adopted, as
described above, comply with the disclosure obligations
pursuant to Italian Legislative Decree 254/16 Art. 1 letter“f” and Art. 3, paragraph 3, which the directors decided toadopt organically in order to fully represent the social andenvironmental topics – in compliance with the mentioned
decree – of significance for the Enel Group in consideration of the Group structure, the specific business sectors, and the reference geographical areas.
The Appendix to the Sustainability Report also contains
specific tables of reconciliation with the indicators proposed by the Sustainability Accounting Standards Board(SASB – in relation to Enel’s core business area in the Electric Utilities & Power Generators Sector). Starting from2022, a specific table is attached that links the topics andinformation required by the European Regulation that
regulates disclosures in the area of Sustainable Finance
Disclosure Regulation (SFDR). The Sustainability Report
2023 also responds to the qualitative indications of the
Task Force on Climate-related Financial Disclosures (TCFD)
and the UN Guiding Principles Reporting Framework. The
alignment is pointed out in the TCFD Content Index, which
includes the section of the financial statements that cover
the qualitative disclosure requests of the TCFD. Finally, asof 2021, a cross-correlation index linking the principles of
the Group’s Human Rights Policy with the content of theReport, also broken down into specific aspects by category of stakeholder, was also included, initially as an appendix
to the Report and from this year included directly within
the chapter on Managing human rights.

366 Sustainability Report 2023

The Sustainability Report is part of the Enel corporate reporting system, and the information it provides is more detailed than and supplementary to the annexed documents
cross referenced in the Report. In defining its corporate
reporting method, the Enel Group has been inspired by theso-called “Core&More” approach. This mode of representation aims to divide the financial and sustainability information on the basis of the interests of the various stakeholders, between a main document, “Core Report”, whichcontains the information of interest to most of the mainstakeholders, and several supplementary documents,“More Reports”, which, conversely, respond to the needsof specific stakeholders for more detailed information on
specific issues.
In this respect, the Enel Group has designed its corporate
reporting system to serve stakeholders in a connected,
logical and structured manner. Furthermore and by developing its own concept for presenting economic, social, environmental and governance information, in linewith specific regulations, benchmark recommendations
and international best practices. Enel’s Integrated Annual
Report represents the “Core” document of the integrated
corporate reporting system. “More Reports”, on the other hand, include greater detail and supplementary information compared to the Core Report, the information ofwhich is also linked to the Core Report through cross reference.
The content formulation process was based on the principles of relevance (or “materiality”), stakeholder inclusivity,
sustainability context and completeness of the data andinformation: Enel provides concise information on its performance in specific sections of the Sustainability Report(see the sections “Enel’s commitment to sustainable development” and “Performance 2023”). These chapters also
contain descriptions of the goals and associated progressreferred to the Sustainable Development Goals (SDGs), in
order to provide full disclosure of all relevant informationin the reporting period, together with reliable estimates
for the future. The quality of information reported is assured by proceeding in compliance with the principles
of accuracy, balance, clarity, completeness, sustainability
context, timeliness, and verifiability.

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2Enel’s commitment
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REPORT AND FINANCIAL STATEMENTS OF
ENEL SPAThis is prepared in conformity with Article 9, paragraph 3,
of Legislative Decree 38 of February 28, 2005

4

Performance 2023

5

Appendix

SUSTAINABILITY REPORTThis includes the Consolidated Non-Financial Statement
pursuant to Legislative Decree 254/2016 and presents Enel’ssustainable business model for creating value for all
stakeholders and contributing to achievement of the 17
Sustainable Development Goals of the United Nations

INTEGRATEDANNUALREPORT
2023

REPORT ON CORPORATE GOVERNANCE
AND OWNERSHIP STRUCTURE
This describes the Enel corporate governance system
pursuant to Article 123 bis of the Consolidated Law on
Financial Intermediation and Article 144 decies of theConsob Issuers Regulation

REPORT ON THE REMUNERATION POLICYThis describes the Enel remuneration system, as
provided for by Article 123 ter of the Consolidated
Law on Financial Intermediation

This report is also compliant with the AccountAbility AA1000
Stakeholder Engagement Standard (AA1000SES), and also
took into account the established ESRS sustainability standards – General Requirements ESRS sustainability reporting
standards prepared by EFRAG (European Financial Reporting
Advisory Group), applicable as of 2024, as well as the Value
Reporting Foundation – Sustainability Accounting Standards
Board (SASB) standard.

Finally, the main UN SDGs are referenced in the various chapters, in accordance with the instructions in “Linking the SDGs
and the GRI standards” published by GRI in January 2021, and
SDG Compass, the guide published in November 2015 anddeveloped by GRI, UN Global Compact and the World Business Council for Sustainable Development (WBCSD) to help
companies align their strategies with the SDGs and measureand manage their contribution to the goals.

Methodological note367

Reconciliation of the topics of the materiality analysis
and GRI Standards
3-1

3-2

3-3

The materiality analysis carried out in compliance withstandard GRI 3: 2021 made it possible to identify the material topics for the Company. The table contains the codes
for the material topics identified with the GRI Standards
or the “Aspects” of the GRI supplement dedicated to theelectric utilities sector (Electric Utilities Sector Disclosures)of reference, along with an indication of the context internal and external to the organization and the limitations
on the scope, and is provided in the chapter “Stakeholder
engagement and materiality analysis”.

The reporting process
The structure of the Sustainability Report 2023 was developed in accordance with the materiality analysis, focusing
more closely on the material topics covered in detail in the
dedicated chapters. Likewise, the materiality level of topics– divided in turn into dedicated sub-topics – influenced thelevel of detail with which to treat each subject and report
the associated GRI indicators (GRI Standards and Electric
Utilities Sector Disclosure) and also the choice of the mostappropriate tools to represent them (2023 Integrated Annual Report and appended reports), to which reference wasmade for the treatment or detailed investigation of more
specific topics, respectively, of economic performance andgovernance. The materiality analysis also formed the basis
for definition of Enel’s sustainability goals for the 20242026 period, as illustrated by the Sustainability Plan (see thesection “Enel’s commitment to sustainable development”).

Attached to this Report is the GRI Content Index, whichcontains a list of the topics covered in this Report and thetitles of the GRI Standards from which the reported disclosures are sourced. This year, a reference to the Sustainability Reporting Standards prepared by EFRAG, using the
GRI-ESRS Interoperability Index, draft version, published in
November 2023 jointly by GRI and EFRAG and earmarked
for finalization in 2024, has been included in a special column. The website www.enel.com should also be consulted
for further information, for example regarding innovation
projects or the activities of Enel’s foundations and the 2023
Informe de Sostenibilidad of Endesa, as well as the Financial
Statements of Enel Américas for more details concerning
initiatives dedicated to customers and local communities in
Spain and Latin America.

Drafting and assurance
2-5
The process of reporting and monitoring the Key Performance Indicators (KPIs) relevant to sustainability involves
the Holding Company, with regard to transversal topics,
and all Group Business Lines, Functions and companies
for topics and indicators specific to the various sectors ofactivity.
Those responsible for collecting, verifying and processing
the relevant KPIs are identified within the units involved.
The Sustainability unit, in particular the Planning, Stakeholders and Human Rights unit, which forms part of theEnel Grids and Innovability Function, is responsible forconsolidating information and coordinating the entire
2023 Sustainability Report drafting process.
On April 10, 2024, the Report was submitted for analysis
and evaluation to the Enel Control and Risk Committee
and on April 11 to Enel’s Corporate Governance and Sus-

368 Sustainability Report 2023

tainability Committee. It was approved by the Board of Directors on April 11. The document will then be presented
to the General Shareholders’ Meeting together with theGroup’s Integrated Annual Report.
This Report has been subjected to a limited audit by andindependent auditing company, KPMG SpA, engaged also
to audit the Enel Group’s Integrated Annual Report. The
limited audit was conducted in accordance with international standard ISAE 3000 (Revised) 1 and, accordingly, theCode of Ethics for Professional Accountants, including
professional independence and verification of the absenceof conflicts of interest that may affect the ethical principles of integrity, objectivity, professional competence anddiligence, confidentiality and professional conduct. As of
the 2021 financial year, the audit approach has been extended to include the comprehensive scrutiny (reasonable1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

assurance) of a set relevant indicators, equal to 19 KPI for
2023, submitted to the Group’s System of Internal Control
over Financial, Tax and Non-Financial Reporting. This activity aims to obtain greater security regarding the selectedindicators as compared to indicators and other information subject to limited scrutiny. It also makes it possible toguarantee to the various stakeholders of the Sustainability
Report greater reliability of the topics and information that
the Report contains. The conclusions of the reasonableassurance activity are set out in the Mixed Audit Report on
Enel’s NFS and on the selection of 19 indicators, issued inaccordance with Art. 3, paragraph 10 of Italian Legislative
Decree 254/16 in compliance with ISAE 3000 Revised, andin compliance with the provisions of the Consob Regulations and the guidelines issued by the professional bodies
concerned (i.e., ASSIREVI). The said report, which contains
a detailed description of the principles adopted, activities
performed and conclusions reached, is attached hereto.
The 19 indicators subjected to reasonable assurance areindicated below.
Climate change
1. Direct emissions Scope 1
2. Scope 2 emissions – market based
3. Scope 2 emissions – location based
4. Absolute Scope 3 GHG emissions relating to Gas Retail
5. Scope 1 GHG emissions Intensity relating to Power Generation
6. Scope 1 and 3 GHG emissions Intensity relating to Integrated Power
Occupational safety
7. No. of fatalities – Enel
8. No. of fatalities – Contractors
9. Lost Time Injury Frequency Rate with absence fromwork of more than 3 days – Enel

4

Performance 2023

5

Appendix

10. Lost Time Injury Frequency Rate with absence fromwork of more than 3 days – Contractors
11. Frequency rate of total injuries – Enel
12. Frequency rate of total injuries – Contractors
Gender diversity
13. Percentage of female managers and middle managers
14. Percentage of women in the managerial succession
and top managerial plans
Other KPIs
15. Current Income Tax Rate
16. Confirmed violations of the Code of Ethics by type,stakeholder, country
17. SAIDI – System Average Interruption Duration Index
18. Commercial complaints on the Group level
19. Renewable Installed Capacity Percentage
In addition, the report on the green bond, also subjected
to limited scrutiny by KPMG SpA according to the criteria
indicated in standard ISAE 3000, is annexed to this Report;
the related audit report is supplied as an attachment tothis Sustainability Report. The Statement of the proportionof activities considered eco-sustainable (Art. 8, Reg. EU
852).
Finally, GHG Inventory Statements, available on the website, were audited by DNV GL, with a reasonable level ofcertainty for Scope 1, Scope 2 and Scope 3 emissions,
restricted to natural gas sales, and with a limited levelof certainty for the other Scope 3 emissions included in
the scope of application of the inventory. The audit was
conducted according to ISO 14064-3 for compliance ofgreenhouse gas (GHG) inventories with the WBCSD/WRI
Corporate Accounting and Reporting Standard (GHG Protocol).

Methodological note 369

Report boundaries
2-2

2-3

2-4

2-5

2-6

3-2

The information and data presented in the Report refer toEnel SpA and the companies within the scope of line-byline consolidation at December 31, 2023, in accordancewith the Group’s financial consolidation scope. In addition
to the line-by-line consolidation scope, the document also
includes the data and information regarding the company
Asociación Nuclear Ascó-Vandellós II AIE (ANA CNVII AIE),
to which the two Spanish nuclear plants of Ascó and Vandellós are attributed. The company, considered to be a joint
operation in line with the provisions of accounting standard IFRS 11(1), is included in the Group’s financial scopeof consolidation under the proportional method, and isincluded in this report using the same method to ensure
the impacts are adequately represented, given that it is asignificant Group entity. The sole exception to the line-byline consolidation scope are the companies acquired in
2023, for which, on the basis of prevailing practice, as also
represented in the Consob report of January 19, 2018(2), it
was decided to begin consolidation, with regard to someof the areas covered in this document, with effect from2023, in the light of the reduced acquisition period. The
areas of exclusion have been indicated directly in the specific chapters.
In particular, the main organizational changes affecting theEnel Group in 2023 were:• divestment of thermoelectric generation assets in Argentina;• finalization of the joint venture agreement with INPEXCorporation for the sale of 50% of Enel Green Power
Australia;• completion of the sale of a portfolio of photovoltaic
plants in Chile to Sonnedix;• conclusion of the sale of the Group’s activities in Romania to PPC;
• finalization of the sale of 50% of Enel Green Power Hellas
to Macquarie Asset Management.
For more detailed information on the changes, reference
should be made to the 2023 Integrated Annual Report in
the paragraphs “Main changes in the scope of consolidation” and “Significant events in 2023”.

(1)

If the associated companies (measured at equity in the Integrated Annual Report) and other entities over which Enel
exercises significant influence (including joint ventures)produce substantial impacts, they are included in the data
calculation in proportion to Enel’s holding, and referenced
in the text. Please refer to the 2023 Integrated Annual Report for details of the companies included the scope of
consolidation.
In this document, the terms “Corporate”, “Holding Company” and “Parent Company” refer to Enel SpA, whereas“Group”, “Enel” and “Company” refer to Enel SpA and its
subsidiaries.
Various deviations from the KPIs and information includedin the 2022 Sustainability Report are the result of changes
in the Group’s scope of consolidation.
The effects of changes in the scope of consolidation, together with any significant changes or limitations of thescope or methods of calculating individual indicators
compared with 2022, are expressly indicated in the text
and/or the Appendix, along with the effects on the related
data. See the notes in the tables in the Appendix for all
further details regarding adjustments with respect to already published data, calculation methods, assumptions
or significant limitations of indicators.
The data have been thoroughly calculated on the basisof the results of Enel’s accounting, non-accounting andother information systems, and validated by the persons
responsible in each case. Data determined through theuse of estimates and related calculation method havebeen expressly indicated. In the comparison of the dataover time, it should be noted that differences between
2023 and 2022, in absolute and percent terms, have been
calculated considering decimal places in some cases not
visible in the printed document. In the tables containing
quantitative data, percent changes in excess of |100%| areindicated by “-”.

A “joint operation” is a joint-control arrangement in which the parties that hold joint control have rights to the assets and obligations for the liabilities associated with the arrangement.
(2) Illustrative report on the results of the consultation and the consequences for regulation, the activities of companies and operators and the interests ofinvestors and savers.

370

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1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Performance indicators
Key sustainability performance indicators are presented
from page 372 to page 409 and form an integral part ofthis Sustainability Report.

Units of measure• ,000 thousands• ,000 d thousands of days
• ,000 h thousands of hours• ,000 t thousands of tons
• % percentage• billions of m billions of cubic meters• cent euros eurocents• dd days• g/kWh grams per kilowatt hour
• g/kWh eq grams per equivalent kilowatt hour
• GBq per unit gigabecquerels per unit
• GW gigawatts• GWh gigawatt hours• h hours• h/per-cap hours per capita• i index• kg kilograms• km kilometers• kWh kilowatt hours• kWh eq equivalent kilowatt hours• kWh/t kilowatt hours per ton• kWp peak kilowatts• l/kWh liters per kilowatt hour
• l/kWh eq liters per equivalent kilowatt hour
• mil million• mil A4 eq millions of equivalent A4 sheets• mil euros millions of euros• mil h millions of hours• mil l millions of liters• mil m millions of cubic meters• mil t millions of tons
• mil t eq - Mt millions of equivalent tons
• min minutes• MJ/kWh eq megajoules per equivalent kilowatt hour
• ML megaliters• Mtoe millions of tons of oil equivalent• MW megawatts• MWh megawatt hours• no. number• sec seconds• t tons• TBq per unit terabecquerels per unit
• TOE tons of oil equivalent• TJ terajoules
3

(3)

3

eq

• TWh Terawatt hours• years years
Acronyms• BESS Battery Energy Storage System• BoD Board of Directors• BOD Biochemical Oxygen Demand• CCGT Combined Cycle Gas Turbine• CERT Cyber Emergency Readiness Team
• COD Chemical Oxygen Demand• CSR Corporate Social Responsibility• CSV Creating Shared Value• EBT Earnings Before Tax• EBIT Earnings Before Interest and Tax• EBITDA Earnings Before Interest, Tax, Depreciation andAmortization• EIB European Investment Bank
• ESG Environmental Social & Governance• EGP Enel Green Power• EPS Earnings per Share• HV High Voltage• LV Low Voltage• IPO Initial Public Offering• IRAP Imposta Regionale sulle Attività Produttive (Regional Business Tax)
• IRES Imposta sul Reddito delle Società (Corporate Income Tax)
• LBG London Benchmarking Group• MV Medium Voltage• PCBs Polychlorinated Biphenyls• R&D Research & Development• RT Remote Training• SCIGR Internal Control and Risk Management System• SDG Sustainable Development Goal
• S&P Standard & Poor’s• SRI Socially Responsible Investor• TCFD Task Force on Climate-related Financial Disclosures• TSR Total Shareholder Return• UN United Nations(3) Corresponding to the sum of electricity and heat.

Methodological note371

PERFORMANCE
INDICATORSThe key sustainability performance indicators are presented below and form an integral part of this Sustainability Report.

372

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1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel’s commitment to sustainable development
GRI/
EUSS KPI
EU1

UM

December
2023

December2022

December
2021 2023-2022

Thermal net capacity:(MW)

22,553

27,689Carbone

(MW)

4,627

CCGT

(MW)

11,983

Olio/gas

(MW)

5,942

Nuclear net capacity

(MW)

3,328

Renewable net capacity:(MW)

55,53653,561

Hydroelectric(MW)

28,34028,355Wind(MW)

15,853

15,735

Geothermal

(MW)

931

931

Biomass and cogeneration

(MW)

6

6

Photovoltaic(MW)10,407

8,534

Total net electrical capacity(MW)

81,417

84,578

Italy

(MW)

26,03026,252

Iberia(MW)

21,24722,044Latin America(MW)

23,073

Chile

(MW)

8,444

Argentina

(MW)

1,328

Colombia

(MW)

4,039

Peru

(MW)

Brazil(MW)

Costa Rica

(MW)

81

81

81

-

-

Costa Rica

Guatemala

(MW)

162

164

164

-2

-1.2

GuatemalaPanama

(MW)

462

415

401

47

11.3

PanamaNorth America(MW)

10,335

9,532

7,941

803

8.4

North America

Europe

(MW)

4

1,020

6,524

-1,016-99.6

Europe%Scope

GENERATION
Installed capacity
Net efficient generation capacity by
primary energy source
33,664-5,136

-18.5

Enel

6,590

6,910

-1,963

-29.8

Enel

13,89415,039-1,911

-13.8

Enel

7,204

11,715-1,262

-17.5

Enel

3,328

3,328

-

-

Enel

50,066

1,975

3.7

Enel

27,847

-15

-0.1

Enel

14,903

118

0.7

Enel

915

-

-

Enel

6

-

-

Enel

6,395

1,873

21.9

Enel

87,058-3,161-3.7

Enel

25,609

-222

-0.8

Italy

21,140-797-3.6

Iberia24,52423,903-1,451-5.9

Latin America

8,409

7,973

35

0.4

Chile

4,419

4,419

3,091

69.9

Argentina

3,711

3,589

328

8.8

Colombia

2,589

2,255

2,294

334

14.8

Peru

5,968

5,071

4,981

897

17.7

BrazilNet efficient generation capacity bygeographic area

Africa, Asia and Oceania

(MW)

729

1,206

1,941

-477

-39.6

Africa, Asia andOceania

Total net electrical capacity(MW)

81,417

84,57887,058-3,161-3.7

Enel

Thermoelectric plants(1)

(no.)

58

63

69

-5

-7.9

Enel

Coal plants

(no.)

5

7

8

-2

-28.6

Enel

CCGT plants

(no.)

17

20

23

-3

-15.0

Enel

Oil/gas plants

(no.)

36

44

48

-8

-18.2

Enel

Nuclear plants

(no.)

4

4

4

-

-

Enel

Renewable energy plants

(no.)

1,272

1,234

1,187

38

3.1

Enel

Hydroelectric plants

(no.)

766

765

739

1

0.1

Enel

Wind plants

(no.)

265

266

266

-1

-0.4

Enel

Photovoltaic plants

(no.)

184

162

141

22

13.6

Enel

Geothermal plants

(no.)

39

39

39

-

-

Enel

Biomass plants

(no.)

2

2

2

-

-

Enel

Power generation plants

Performance indicators

373

GRI/
EUSS KPI

UM

December
2023

December
2022

(no.)

16

-

-

Thermal net production(GWh)55,48088,811

Coal

(GWh)

10,755

CCGT

(GWh)

36,705

Oil/natural gas

(GWh)

8,021

Nuclear net production(GWh)24,865

Renewable net production:(GWh)

126,985

Hydroelectric(GWh)60,991

Wind

(GWh)

Geothermal(GWh)

Biomass and cogeneration

(GWh)

42

43

40

Photovoltaic(GWh)14,613

11,306

7,899

Total net production(GWh)207,330

227,767

222,605(GWh)

42,601

48,460

BESS plants

December
2021 2023-2022

%

Scope

-

-

Enel

88,285-33,331

-37.5

Enel

19,722

13,858-8,967

-45.5

Enel

54,436

51,718-17,731

-32.6

Enel

14,652

22,709-6,631

-45.3

Enel

26,50825,504-1,643-6.2

Enel

112,448

108,817

14,537

12.9

Enel51,72857,001

9,263

17.9

Enel

45,33943,25537,791

2,084

4.8

Enel

6,001

6,117

6,086

-116

-1.9

Enel

-1

-2.3

Enel

3,307

29.2

Enel

-20,437

-9.0

Enel

47,964-5,859

-12.1

Italy

OPERATING RESULTS
EU2

GENERATION
Net production by primary energy source

Net production by geographic area
Italy
Iberia(GWh)60,26464,71557,592-4,451-6.9

IberiaLatin America(GWh)74,75075,59470,376-844-1.1

Latin America

Chile

(GWh)

24,122

22,21519,034

1,907

8.6

Chile

Argentina

(GWh)

4,459

11,121

13,099-6,662-59.9

Argentina

Colombia(GWh)15,95913,663

13,241

2,296

16.8

Colombia

Peru

(GWh)

10,394

9,615

9,585

779

8.1

Peru

Brazil(GWh)

17,625

16,60812,713

1,017

6.1

Brazil

Costa Rica

(GWh)

233

216

198

17

7.9

Costa Rica

Guatemala

(GWh)

561

659

548

-98

-14.9

GuatemalaPanama

(GWh)

1,398

1,498

1,958

-100

-6.7

PanamaNorth America(GWh)25,611

23,385

20,3562,226

9.5

North America

Europe

(GWh)

2,151

12,51323,736-10,362-82.8

EuropeAfrica, Asia and Oceania

(GWh)

1,953

3,099

2,580

-1,146-37.0

Africa, Asia andOceania

Total net production(GWh)207,330

227,767

222,605-20,437

-9.0

Enel

New renewable power(2):(MW)

4,032.2

4,958.5

5,175.9-926.3

-18.7

Enel

Hydroelectric

(MW)

3.2

556.6

33.0

-553.4

-99.4

Enel

Wind

(MW)

1,152.5

1,826.6

2,596.3-674.1

-36.9

Enel

Geothermal

(MW)

-

16.6

32.7

-16.6 -100.0

Enel

Biomass and cogeneration

(MW)

-

-

0.5

-

-

Enel

Photovoltaic(MW)2,876.5

2,558.7

2,513.0

317.8

12.4

Enel

Total electricity distribution network(km) 1,899,419

2,024,038

2,233,368-124,619

-6.2

Enel

Total high-voltage network(km)

40,56646,860-6,555

-16.2

Enel

- of which underground cable

(km)

1,448

1,748

1,529

-300

-17.2

Enel

Total medium-voltage network(km)

687,051

717,992

891,221-30,941

-4.3

Enel

- of which underground cable(km)

218,679

230,216

212,077-11,537

-5.0

Enel

Total low-voltage network(km)

1,178,356

1,265,480

1,295,287-87,124

-6.9

Enel

- of which underground cable(km)

389,853

410,142

387,314-20,289

-4.9

Enel

Development of renewables

NETWORK
EU4

374

Sustainability Report 2023

34,011

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

GRI/
EUSS KPI
EU4

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

AppendixUM

December
2023

December2022

December
2021 2023-2022

%

Scope

Total electricity distribution network Italy(km)

1,167,219

1,165,131

1,151,482

2,088

0.2

Italy

High-voltage network

(km)

20

20

19

-

-

Italy

- of which underground cable

(km)

3

3

3

-

-

Italy

Medium-voltage network(km)363,719

361,775

348,699

1,944

0.5

Italy

- of which underground cable(km)

159,899

157,618

154,983

2,281

1.4

Italy

Low-voltage network(km)

803,480

803,336

802,764

144

-

Italy

- of which underground cable(km)

279,763279,646

279,325

117

-

Italy

Total electricity distribution network Iberia(km)

319,136

317,829

316,506

1,307

0.4

IberiaHigh-voltage network(km)

19,711

19,763

19,713-52-0.3

IberiaElectricity distribution network bygeographic area

- of which underground cable

(km)

813

807

805

6

0.7

IberiaMedium-voltage network(km)

115,070

114,673

114,336397

0.3

Iberia- of which underground cable(km)

42,13041,74741,362383

0.9

IberiaLow-voltage network(km)

184,356

183,393

182,457963

0.5

Iberia- of which underground cable(km)

88,27787,43086,63988,277-

IberiaTotal electricity distribution network
Latin America(km)413,064

407,962

633,047

5,102

1.3

Latin America

High-voltage network(km)

14,28014,252

20,60028

0.2

Latin America- of which underground cable

(km)

632

623

721

9

1.4

Latin America

Medium-voltage network(km)

208,263

205,450

392,255

2,813

1.4

Latin America- of which underground cable(km)

16,65016,202

15,732448

2.8

Latin America

Low-voltage network(km)

190,521

188,260

220,192

2,261

1.2

Latin America- of which underground cable(km)

21,813

21,612

21,350201

0.9

Latin America

Distributed energy(3)

(TWh)

489.2

507.5

510.6

-18.3

-3.6

Enel

Italy

(GWh)

87,23997,19592,768-9,956

-10.2

Italy

- of which free market(GWh)75,22578,33465,577-3,109

-4.0

Italy

- of which regulated market(GWh)

12,014

18,861

27,191-6,847

-36.3

Italy

Iberia(GWh)

77,68879,00379,458-1,315-1.7

Iberia- of which free market(GWh)70,17370,79368,753-620-0.9

Iberia- of which regulated market

(GWh)

7,515

8,210

10,705-695-8.5

IberiaRomania

(GWh)

6,749

9,816

9,294

-3,067-31.2

Romania- of which free market

(GWh)

6,749

9,809

9,036

-3,060-31.2

Romania- of which regulated market

(GWh)

-

7

258

-7 -100.0

Romania

Latin America(GWh)129,177

135,093

127,906-5,916-4.4

Latin America- of which free market(GWh)42,39339,31732,593

3,076

7.8

Latin America- of which regulated market(GWh)86,784

95,776

95,313-8,992-9.4

Latin America

Total volumes of energy sold

(GWh)

300,853

321,107309,425-20,254

-6.3

Enel

- of which free market(GWh)

194,540

198,253

175,958-3,713-1.9

Enel- of which regulated market(GWh)106,313

122,854

133,467-16,541

-13.5

Enel

Volumes sold gas

3(bn m )

8.3

10.2

9.9

-1.9

-18.7

Enel

Italy

(bn m3)

4.1

4.7

4.3

-0.6

-12.2

Italy

- mass market customers

3(bn m )

2.8

3.2

2.9

-0.4

-11.2

Italy

- business customers(bn m3)

1.3

1.6

1.4

-0.2

-14.1

Italy

Iberia3(bn m )

3.8

4.9

5.2

-1.1

-22.6

IberiaRomania(bn m3)

0.2

0.3

0.2

-0.1

-29.3

Romania

Latin America(bn m3)

0.2

0.3

0.2

-0.2

-45.9

Latin America

SALES
Volumes of electricity sold

Performance indicators

375

GRI/
EUSS KPI

UM

December
2023

December2022

December
2021 2023-2022

Revenues(mil euros)

95,565140,51785,719Italy(mil euros)

49,327

83,50845,417%

Scope-44,952

-32.0

Enel

-34,181

-40.9

Italy
IberiaECONOMIC RESULTS

Iberia(mil euros)

25,42832,83321,052-7,405-22.6

Rest of the world(4)(mil euros)

21,281

23,874

18,725-2,593-10.9 Rest of the world

Latin America(mil euros)

18,576

21,334

16,957-2,758-12.9

Latin America

Europe(mil euros)

239

87

14

152

-

EuropeNorth America(mil euros)

2,142

2,214

1,513

-72

-3.3

North America

27.1

Africa, Asia andOceania

Africa, Asia and Oceania(mil euros)

338

266

241

72

Eliminations rest of the world(4)(mil euros)

-14

-27

-

13

-48.1 Rest of the world

Other, eliminations and adjustments(mil euros)

-471

302

525

-773

Other,- eliminations andadjustments

EBITDA(mil euros)

20,255

19,91817,233

337

1.7

Enel

Italy

(mil euros)

10,768

6,307

6,633

4,461

70.7

Italy

Iberia(mil euros)

3,679

5,230

4,183

-1,551-29.7

IberiaRest of the world(4)(mil euros)

6,152

7,630

4,932

-1,478-19.4

Rest of theworld

Latin America(mil euros)

5,194

6,579

4,143

-1,385-21.1

Latin America

Europe(mil euros)

159

27

-5

132

-

EuropeNorth America(mil euros)

660

940

684

-280

-29.8

North America

Africa, Asia and Oceania(mil euros)

139

83

110

56

67.5

Africa, Asia andOceania

Eliminations rest of the world(4)(mil euros)

-

1

-

-

-

Rest of theworld

Other, eliminations and adjustments(mil euros)

-344

751

1,485

-1,095

Italy

(%)

53.1

31.7

38.5

21.4

-

Iberia

(%)

18.2

26.3

24.3

-8.1

-

IberiaOther,- eliminations andadjustments
Italy

Rest of the world(4)

(%)

30.4

38.3

28.6

-7.9

-

Rest of theworld

Latin America

(%)

25.6

33.0

24.0

-7.4

-

Latin America

Europe

(%)

0.8

0.1

-

0.7

-

EuropeNorth America

(%)

3.3

4.7

4.0

-1.4

-

North America

Africa, Asia and Oceania

(%)

0.7

0.4

0.6

0.3

-

Africa, Asia andOceania

Eliminations rest of the world(4)

(%)

-

-

-

-

- Rest of the world

Other, eliminations and adjustments

(%)

-1.7

3.8

8.6

-5.5

Other,- eliminations andadjustments

EBIT(5)(mil euros)

7,416

8,677

5,378

-1,261

-14.5

Enel

Net profit/(loss) for the year (Group andminority interests)(6)(mil euros)

4,267

2,920

3,758

1,347

46.1

Enel

Value generated and distributed forstakeholders
Economic value generated directly:

376

Revenues(mil euros)

96,159140,82185,865-44,662

-31.7

Enel

Economic value distributed directly:(mil euros)

86,868130,824

78,684-43,956

-33.6

Enel

Operating costs(mil euros)

67,631

114,384

62,063-46,753

-40.9

Enel

Personnel and benefit cost(mil euros)

4,126

3,646

4,296

480

13.2

Enel

Payment to lenders of capital (shareholders
and lenders)(mil euros)

8,890

7,691

7,409

1,199

15.6

Enel

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

GRI/
EUSS KPI

3

Stakeholder engagement andmateriality analysis

4

UM

December
2023

December2022

Payments to governments(mil euros)

6,221

5,103

4,916

Economic value retained(mil euros)

9,291

9,997

Total investments(8)(mil euros)

12,714Italy(mil euros)

5,763

Iberia(mil euros)

2,305

(7)

Performance 2023

December
2021 2023-2022

5

Appendix

%

Scope

1,118

21.9

Enel

7,181

-706

-7.1

Enel

14,347

12,997-1,633

-11.4

Enel

4,640

3,842

1,123

24.2

Italy

2,316

2,202

-11

-0.5

IberiaInvestments

Rest of the world(mil euros)

4,419

7,168

6,738

-2,749-38.4

Rest ofthe world

Latin America(mil euros)

3,302

4,289

3,772

-987

-23.0

Latin America

Europe(mil euros)

2

224

456

-222

-99.1

EuropeNorth America(mil euros)

1,096

2,491

2,293

-1,395-56.0

North America

Africa, Asia and Oceania(mil euros)

19

164

217

-145

-88.4

Africa, Asia andOceania

Eliminations rest of the world(mil euros)

-

-

-

-

Total Abroad(mil euros)

6,724

9,484

8,890

-2,760-29.1

Total Abroad

Adjustments, other, eliminations(mil euros)

227

223

265

4

1.8

Enel

- Rest of the world(1) In some thermal plants, multiple technology units are present.
(2) New renewable power, excluding disposals and changes in scope, mainly in North, Central and South America. The figure for new renewable power in 2022
and 2021 includes a more specific determination.
(3) The distributed electricity figure for 2022 takes into account a more precise determination of the quantities transported.
(4) With regard to the disclosure by operating segment, it should be noted that, in relation to the presentation of data by secondary segment (country andregion), the data relating Latin America, Europe, North America, Africa, Asia and Oceania were included in the “Rest of the world” area.
(5) The figure for 2022 has been restated to take into account the classification under “discontinued operations” of the “Share of income/(losses) from equity
investments accounted for using the equity method” referring to Rusenergosbyt LLC, a Russian company divested in December 2023.
(6) This year the figure of “Net profit/(loss) for the year (Group and third parties)” was included, while in previous years “Net profit/(loss) from continuing operations (Group and third parties)” was included.
(7) The amount mainly includes the Total Tax Borne, which represents the total amount paid by the Group (including the Greek and Romanian companies) fortaxes that represent a cost for the Group. The 2022 figures include a more specific determination thereof.
(8) The data does not include investments with reference to the scope classified as “held for sale”.

Performance indicators

377

Business drivers, Customer centricity
GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

EU3

RETAIL CUSTOMERS

2023-2022

%

Scope

(no.)

61,118,024

66,784,895

69,342,818-5,666,871

-8.5

Enel

Customers Italy(no.)

18,559,867

21,382,665 21,824,404-2,822,798

-13.2

Italy

Free market(no.)

11,692,859

11,879,742

10,200,185-186,883

-1.6

Italy

Regulated market(no.)

6,867,008

9,502,923

11,624,219-2,635,915

-27.7

Italy

Customers Iberia(no.)

10,521,874

10,545,281

10,250,657-23,407-0.2

IberiaFree market(no.)

6,893,246

6,829,138

5,877,494

64,1080.9

IberiaRegulated market(no.)

3,628,628

3,716,143

4,373,163-87,515-2.4

IberiaCustomers Latin America(1)(no.)

25,867,555

25,392,600

28,253,787

474,955

1.9

Latin
America

Free market

(no.)

7,531

6,871

6,571

660

9.6

Latin
America

Regulated market(no.)

25,860,024

25,385,729

28,247,216

474,295

1.9

Latin
AmericaElectricity customers Total(no.)

54,949,296

60,225,898

63,373,692-5,276,602

-8.8

Enel

Free market Total(no.)

18,593,636

21,618,483

19,103,009-3,024,847

-14.0

Enel

Regulated market Total(no.)

36,355,660

38,607,415

44,270,683-2,251,755

-5.8

Enel

Customers Italy(no.)

4,339,943

4,581,245

4,165,317-241,302

-5.3

Italy

Customers Iberia(no.)

1,828,762

1,798,737

1,684,369

30,025

1.7

IberiaCustomers Latin America(2)

(no.)

23

22

25

1

4.5

Latin
America

Gas market customers Total(no.)

6,168,728

6,558,997

5,969,126-390,269

-6.0

Enel

Customers public lighting(3)

(no.)

2,640

2,617

2,792

23

0.9

Italy

Light sources public lighting(,000)

3,259

3,023

2,821

236

7.8

Italy

Frequency of surveys

(no.)

1

1

1

-

-

Italy

Written complaints and information
requests(,000)

78.4

104.0

87.4

-25.6

-24.6

Italy

Response time to written complaints

(dd)

13.0

13.0

11.0

-

-

Italy

Frequency of surveys

(no.)

1

1

1

-

-

Italy

Written complaints and information
requests(,000)

193.0

117.0

105.5

76.0

65.0

Italy

Response time to written complaints

(dd)

18.0

20.0

18.0

-2.0

-10.0

Italy

Electricity and gas customers Total
Electricity market

Gas market

PUBLIC LIGHTINGSERVICE QUALITY
ELECTRICITY MARKET ITALY
2-29

Regulated market

Free market

ELECTRICITY MARKET IBERIAFree market (formerly no official
benchmark rate market)
Response time to written complaints
Commercial claims

(dd)

43.9

20.1

15.7

23.8

-

Iberia(no./10k
customers)

177

212

N/A

-35.0

-16.5

Enel

(no.)

140,152

208,025

155,390-67,873

-32.6

Italy

ACCESSIBILITY OF ENERGY
EU27

Customers disconnected for non-payment
Market Italy-Electricity
by time from disconnection to paymentRegulated market:

378

Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

<48 h

(no.)

68,907108,161

86,401-39,254

-36.3

Italy

48 h - 1 week(no.)

37,19650,28135,347-13,085

-26.0

Italy

1 week - 1 month(no.)

33,76849,35733,534-15,589

-31.6

Italy

1 month - 1 year

(no.)

281

225

108

56

24.9

Italy

>1 year

(no.)

-

1

-

-1

-100.0Italytime from payment to reconnectionRegulated market:(no.)

140,152

208,025

155,390-67,873

-32.6

Italy

<24 h

(no.)

132,225

196,604

144,508-64,379

-32.7

Italy

24 h - 1 week

(no.)

7,721

11,104

10,657-3,383

-30.5

Italy

>1 week

(no.)

206

317

225

-111

-35.0

Italy

by time from disconnection to paymentFree market:(no.)

281,661

285,037

336,381-3,376

-1.2

Italy

<48 h

(no.)

141,414

152,857

175,457-11,443

-7.5

Italy

48 h - 1 week(no.)

46,31747,45564,659-1,138

-2.4

Italy

1 week - 1 month(no.)

86,154

77,59089,645

8,564

11.0

Italy

1 month - 1 year

(no.)

7,776

7,135

6,620

641

9.0

Italy

>1 year

(no.)

-

-

-

-

-

Italy

by time from payment to reconnectionFree market:(no.)

281,661

285,037

336,381-3,376

-1.2

Italy

<24 h

(no.)

275,698

279,801

334,081-4,103

-1.5

Italy

24 h - 1 week

(no.)

5,935

5,230

2,279

705

13.5

Italy

>1 week

(no.)

28

6

21

22

-

Italy

by time from disconnection to payment:(no.)

42,37545,00455,325-2,629

-5.8

Italy

<48 h

(no.)

7,503

11,23913,411-3,736

-33.2

Italy

48 h - 1 week(no.)

11,68013,954

18,597-2,274

-16.3

Italy

1 week - 1 month(no.)

20,685

17,036

20,541

3,649

21.4

Italy

1 month - 1 year

(no.)

2,507

2,775

2,776

-268

-9.7

Italy

>1 year

(no.)

-

-

-

-

-

Italy

by time from payment to reconnection:(no.)

42,37545,00455,325-2,629

-5.8

Italy

<24 h

(no.)

40,06642,216

51,408-2,150

-5.1

Italy

24 h - 1 week

(no.)

2,223

2,763

3,891

-540

-19.5

Italy

>1 week

(no.)

86

25

26

61

-

Italy

by time from disconnection to paymentRegulated market:(no.)

18,07821,77954,120-3,701-17.0

Iberia

<48 h

(no.)

14,61917,564

41,123-2,945-16.8

Iberia48 h - 1 week

(no.)

1,897

2,326

6,648

-429

-18.4

Iberia1 week - 1 month

(no.)

1,099

1,405

4,325

-306

-21.8

Iberia1 month - 1 year

(no.)

463

484

2,024

-21

-4.3

Iberia>1 year

(no.)

-

-

-

-

-

Iberiatime from payment to reconnectionRegulated market:(no.)

19,24921,793

54,110-2,544-11.7

Iberia

<24 h

(no.)

18,794

21,35651,759-2,562-12.0

Iberia24 h - 1 week

(no.)

388

404

2,168

-16

-4.0

Iberia>1 week

(no.)

67

33

183

34

-

Iberiaby time from disconnection to paymentFree market:(no.)

14,822

14,21851,980604

4.2

Iberia

<48 h

(no.)

12,436

12,232

43,579204

1.7

Iberia48 h - 1 week

(no.)

1,509

1,458

5,919

51

3.5

Iberia1 week - 1 month

(no.)

792

525

2,385

267

50.9

IberiaMarket Italy-Gas

Market Italy-electricity

Performance indicators

379

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

1 month - 1 year

(no.)

85

3

97

82

-

Iberia>1 year

(no.)

-

-

-

-

-

Iberiaby time from payment to reconnectionFree market:(no.)

16,173

14,21551,977

1,958

13.8

Iberia

<24 h

(no.)

15,705

13,84849,844

1,857

13.4

Iberia24 h - 1 week

(no.)

398

334

1,969

64

19.2

Iberia>1 week

(no.)

70

33

164

37

-

Iberiaby time from disconnection to payment:

(no.)

3,677

1,557

5,453

2,120

-

Iberia

<48 h

(no.)

1,112

855

3,262

257

30.1

Iberia48 h - 1 week

(no.)

816

329

1,217

487

-

Iberia1 week - 1 month

(no.)

1,195

322

813

873

-

Iberia1 month - 1 year

(no.)

554

51

161

503

-

Iberia>1 year

(no.)

-

-

-

-

-

Iberiaby time from payment to reconnection:

(no.)

3,475

1,524

5,333

1,951

-

Iberia

<24 h

(no.)

1,572

338

1,023

1,234

-

Iberia24 h - 1 week

(no.)

1,380

890

3,331

490

55.1

Iberia>1 week

(no.)

523

296

979

227

76.7

Iberiaby time from disconnection to paymentRegulated market:(no.)

2,460,407

4,211,428

4,336,099-1,751,021

-41.6

Latin
America

<48 h

(no.)

1,601,629

2,457,160

2,760,105-855,531

-34.8

Latin
America

48 h - 1 week

(no.)

454,340

537,479

799,817-83,139

-15.5

Latin
America

1 week - 1 month(no.)

324,558

541,326

549,701-216,768

-40.0

Latin
America

1 month - 1 year(no.)

79,880647,637

224,389-567,757

-87.7

Latin
America>1 year(no.)-

27,826

2,087-27,826-100.0Latin
Americaby time from payment to reconnectionRegulated market:(no.)

2,149,702

3,459,876

5,389,308-1,310,174

-37.9

Latin
America

<24 h

(no.)

1,939,254

2,797,521

3,931,289-858,267

-30.7

Latin
America

24 h - 1 week

(no.)

174,727

533,766

1,385,738-359,039

-67.3

Latin
America>1 week(no.)

35,721

128,589

61,281-92,868

-72.2

Latin
AmericaFrequency of interruptions per customerGroup

(no.)

2.5

2.6

2.8

-0.1

-4.6

Enel

Frequency of interruptions per customer
Italy(4)

(no.)

1.7

1.6

1.8

0.1

3.7

Italy

Frequency of interruptions per customer
Iberia

(no.)

1.2

1.3

1.4

-0.1

-7.7

IberiaFrequency of interruptions per customer
Peru

(no.)

2.7

2.9

2.3

-0.2

-7.5

Peru

Frequency of interruptions per customer
Chile

(no.)

1.2

1.6

1.5

-0.4

-23.6

Chile

Frequency of interruptions per customer
Argentina

(no.)

7.9

5.3

4.8

2.6

49.6

Argentina

Frequency of interruptions per customer
Brazil (Ampla)

(no.)

4.2

4.5

4.6

-0.3

-6.7

BrazilMarket Iberia-gas

Market Latin America(1)-electricity

RELIABILITY OF THE DISTRIBUTIONNETWORK
EU28

Service interruptions - frequency (SAIFI)380 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

EU29

EU12

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

Frequency of interruptions per customer
Brazil (Coelce)

(no.)

3.8

4.2

4.7

-0.4

-9.5

BrazilFrequency of interruptions per customer
Brazil (CelG)(4)

(no.)

-

7.8

8.4

-7.8

-100.0BrazilFrequency of interruptions per customer
Brazil (ELPL)

(no.)

3.4

3.4

3.4

-

-

BrazilFrequency of interruptions per customer
Colombia

(no.)

4.6

3.9

5.2

0.7

17.9

Colombia

Service interruptions - duration (SAIDI)
Service Continuity Index-Group

(min)

218

231

243

-13

-5.8

Enel

Service Continuity Index Italy

(min)

46

42

43

4

10.1

Italy

Service Continuity Index Iberia

(min)

63

64

70

-1

-1.6

IberiaService Continuity Index Peru(4)

(min)

635

610

414

25

4.1

Peru

Service Continuity Index Chile

(min)

121

159

152

-38

-23.9

Chile

Service Continuity Index Argentina

(min)

1,169

892

797

277

31.1

Argentina

Service Continuity Index Brazil (Ampla)(4)

(min)

505

558

556

53

9

BrazilService Continuity Index Brazil (Coelce)

(min)

570

589

681

-19

-3.2

BrazilService Continuity Index Brazil (CelG)

(min)

-

934

1,088

-934

-100.0BrazilService Continuity Index Brazil (ELPL)

(min)

398

374

396

24

6.4

BrazilService Continuity Index Colombia

(min)

353

320

401

33

10.3

Colombia

Network losses-Group

(%)

7.5

7.7

7.7

0.3

-

Enel

Network losses Italy

(%)

4.7

4.7

4.7

-

-

Italy

Network losses Iberia

(%)

6.8

7.0

7.1

-0.2

-

IberiaNetwork losses Peru

(%)

8.7

8.2

8.5

0.5

-

Peru

Network losses Chile

(%)

5.3

5.1

5.2

0.2

-

Chile

Network losses Argentina

(%)

16.8

17.1

18.0

-0.3

-

Argentina

Network losses Brazil (Ampla)

(%)

19.7

19.7

20.5

-

-

BrazilNetwork losses Brazil (Coelce)

(%)

14.7

15.2

16.1

-0.5

-

BrazilNetwork losses Brazil (CelG)

(%)

-

12.9

11.3

-12.9

-

BrazilNetwork losses Brazil (ELPL)

(%)

10.3

11.0

10.3

-0.7

-

BrazilNetwork losses Colombia

(%)

7.5

7.5

7.5

-

-

Colombia

Average thermoelectric park efficiency
without the heat component

(%)

42.0

42.4

41.7

-0.4

-

Enel

Average thermoelectric park efficiency
with heat

(%)

42.0

42.8

42.9

-0.8

-

Enel

Efficiency of coal-fired plants

(%)

32.9

33.2

32.6

-0.3

-

Enel

Oil/gas plant efficiency

(%)

32.9

34.4

35

-1.5

-

Enel

Efficiency of CCGT plants

(%)

48.9

50.4

49.7

-1.5

-

Enel

Efficiency of coal-fired plants

(%)

32.9

33.2

32.6

-0.3

-

Enel

Oil/gas plant efficiency

(%)

32.9

36.6

38.6

-3.7

-

Enel

Efficiency of CCGT plants

(%)

48.9

50.5

49.9

-1.6

-

Enel

Availability of thermoelectric park

(%)

83.9

82.4

86.4

1.5

-

Enel

Network losses-distribution(5)

AVAILABILITY AND RELIABILITY
OF POWER
EU11

Thermoelectric park efficiency(6)Average efficiency by technology
without the heat component

Average efficiency with heat component
by technology

EU30

Thermoelectric park availability bysourcePerformance indicators

381

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

Availability of coal-fired plants

(%)

76.6

67.7

78.4

8.9

-

Enel

Availability of oil/gas plants

(%)

87.9

81.5

88.5

6.4

-

Enel

Availability of CCGT plants

(%)

81.7

88.3

88.8

-6.6

-

Enel

(%)

86.3

85.9

86.9

0.4

-

Enel

Availability of thermal power plants byregulatory regime
Regulated
Free

(%)

83.2

81.1

86.2

2.1

-

Enel

End users(no.)

70,291,727

75,178,777

74,303,931-4,887,050

-6.5

Enel

End users with active smart meters(no.)

45,172,959

45,824,963

44,292,794-652,004-

Enel

End users with active smart meters/end
users

(%)

64.3

63.1

60.0

1.2

-

Enel

Total proceedings(no.)

136,077

136,428

126,692

-351

-0.3

Enel

Incidence of proceedings as defendant

(%)

70.5

69.1

71.3

1.4

-

Enel

Disputes with customers

(1)
(2)
(3)
(4)
(5)

Includes: Argentina, Brazil, Chile, Colombia, Peru.
Includes: Chile, Colombia.
The 2022 figure was reparametrized due to Peru’s departure from the reporting boundary.
The 2022 figures include a more specific determination thereof.
The KPI refers only to the distribution business (high, medium and low voltage). Conversely, the KPI relating to Enel Cien’s transmission activities in Brazil
reported in the Sustainability Report 2022 is no longer applicable as the concession for the operation of the transmission network for the interconnection
between Brazil and Argentina expired at the start of 2023, and therefore Enel no longer carries out transmission operations.
(6) The park efficiency was calculated assuming the operation of the plants at load level, where there is maximum efficiency for those plants; for these, the load
curve is available. This assumption has not been applied to the heat component since it is already high efficiency; the availability was calculated by reducing
the causes of internal unavailability.

382

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Zero emissions ambition and just transition,
Roadmap towards natural capital conservation
GRI/
EUSS

KPI

UM

December December December
2023
2022
2021 2023-2022

%

Scope

EMISSIONS
Total direct and indirect greenhouse gas emissions(Scopes 1, 2, 3)
Total Scope 1, 2, 3 emissions – location based(mil tCO2eq)

94.32

127.92127.09-33.60

-26.3

Enel

Total Scope 1, 2, 3 emissions – market based(mil tCO2eq)

95.55

129.20128.66-33.65

-26.0

Enel

CO2 emissions from power generation(1)(mil t)

32.62

51.93

50.56

-19.31

-37.2

Enel

Other direct GHG emissions (Scope 1)(2)(mil tCO2eq)

1.89

1.14

1.01

0.75

65.8

Enel

Total direct emissions (Scope 1)(mil tCO2eq)

34.51

53.07

51.57

-18.56

-35.0

Enel

(%)

74.1

66.8

51.6

7.3

-

Enel

Total Scope 2 – location based(mil tCO2eq)

3.28

3.82

4.03

-0.54

-14.1

Enel

-P
 urchased energy from the grid for own
consumption(mil tCO2eq)

0.60

0.69

0.70

-0.09

-13.3

Enel

-P
 ower distribution activity: emissions related totechnical grid losses(mil tCO2eq)

2.68

3.12

3.33

-0.44

-14.3

Enel

Total Scope 2 – market based(mil tCO2eq)

4.51

5.10

5.60

-0.59

-11.6

Enel

-P
 urchased energy from the grid for own
consumption(mil tCO2eq)

0.81

0.89

1.00

-0.08

-9.7

Enel

(mil tCO2eq)

3.70

4.21

4.60

-0.51

-12.1

Enel

Category 1: Purchase of goods and services(Supply chain)(mil tCO2eq)

8.82

14.41

12.99

-5.59

-38.8

Enel

Category 3: Fuel and energy-related activities notincluded in Scopes 1 and 2(mil tCO2eq)

30.92

35.98

38.44

-5.06

-14.1

Enel

- Upstream coal (mining and transport by sea)(mil tCO2eq)

1.02

1.88

1.24

-0.86

-45.8

Enel

- Upstream gas (extraction and transport by sea)(mil tCO2eq)

5.89

8.42

10.01

-2.53

-30.0

Enel

- Upstream diesel and biomass (transportation)(mil tCO2eq)

0.01

0.01

0.01

-

-

Enel

- Purchase of electricity for selling to end customer(mil tCO2eq)

24.00

25.67

27.19

-1.67

-6.5

Enel

Category 4: Upstream transport and distribution(transport of raw materials and waste)(mil tCO2eq)

0.01

0.01

-

-

-

Enel

Category 11: Use of products sold (Use of gas soldto end customer)(6)(mil tCO2eq)

16.79

20.63

20.05

-3.84

-18.6

Enel

Total indirect emissions (Scope 3)(5)(6)(mil tCO2eq)

56.53

71.04

71.49

-14.51

-20.4

Enel

Intensity of total GHG Scope 1 emissions(7)(gCO2eq/kWh)

166

230

227

-64

-28.0

Enel

Intensity of CO2 emissions related to energy
production(8)(gCO2/kWh)

157

225

222

-68

-30.2

Enel

Scope 1 GHG emissions Intensity relating to Power
Generation (SBTi)(9)(gCO2eq/kWh)

160

229

225

-69

-30.1

Enel

Scope 1 and 3 GHG emissions Intensity relating toIntegrated Power (SBTi)(5)(10)(gCO2eq/kWh)

168

210

212

-42

-20.0

Enel

(mil tCO2eq)

86.0

81.6

72.8

4.4

5.4

Enel

305-1 Direct greenhouse gas emissions (Scope 1)

Emissions covered by the EU ETS (Emission Trading
System) program.
305-2 Indirect greenhouse gas emissions (Scope 2)(3)-P ower distribution activity: emissions related totechnical grid losses
305-3 Other indirect greenhouse gas emissions (Scope 3)

(4)

(5)

305-4 Specific emissions

305-5 Avoided emissions(11)305-7 Other atmospheric emissions(12)

SO2 emissions(t)

18,701

16,602

15,615

2,099

12.6

Enel

NOx emissions(t)

53,85074,22578,846-20,375

-27.5

Enel

Dust emissions

(t)

1,259

1,227

1,099

32

2.6

Enel

H2S emissions

(t)

5,114

5,226

4,772

-112

-2.1

Enel

Hg emissions (coal-fired thermoelectric)

(t)

0.04

0.08

0.05

-0.04

-50.0

Enel

SO2 emissions(g/kWh)

0.09

0.07

0.07

0.02

28.6

Enel

NOx emissions(g/kWh)

0.26

0.32

0.35

-0.06

-18.8

Enel

Dust emissions(g/kWh)

0.006

0.005

0.005

0.001

20.0

Enel

Specific emissions

Performance indicators

383

GRI/
EUSS

KPI

UM

December December December
2023
2022
2021 2023-2022

%

Scope

305-6 Ozone Depleting Substances emissions
Total
2-27

(kgCFC-11eq)

14

43

180

-29

-67.4

Enel

Total non-compliance for which monetary andnon-monetary sanctions were incurred

(no.)

39

92

-

-53

-

Enel

Total non-compliance for which non-monetary
sanctions were incurred

(no.)

12

22

-

-10

-45.5

Enel

Total non-compliance for which monetary sanctions
were incurred

(no.)

27

70

-

-43

-61.4

Enel

Fines for instances of non-compliance with laws
and regulations occurred in the current reporting
period(mil euros)

3.98

0.01

-

3.97

-

Enel

Fines for instances of non-compliance with laws andregulations occurred in the previous reporting periods(mil euros)

0.14

0.15

-

-0.01

-9.3

Enel

Environmental liabilities accrued at year-end(mil euros)

0.11

1.60

-

-1.49

-92.9

Enel

(no.)

112

168

243

-56

-33.3

Enel

(mil euros)

3.98

1.80

5.00

2.18

-

Enel

Compliance with environmental laws and regulations

Environmental proceedings as defendantTotal number of environmental proceedings as
defendant
Monetary values
ENERGY CONSUMPTION
302-1 Fuel consumption by primary source in TJ
from non-renewable sources(TJ)

752,814 1,053,083 1,044,714-300,269

-28.5

Enel

Coal

(TJ)

117,193-89,257

-43.2

Enel

Lignite

(TJ)

-

-

-

-

-

Enel

Fuel oil(TJ)

32,48335,84834,787-3,365-9.4

Enel

Natural gas(TJ)

276,567

469,425

549,312-192,858

-41.1

Enel

Diesel oil(TJ)

60,79758,48648,482

2,311

4.0

Enel

Uranium(TJ)

265,773282,872

270,605-17,099

-6.0

Enel

from renewable sources(TJ)

53,91554,98754,588-1,072-1.9

Enel

Biomass, biogas and waste

(TJ)

868

1,044

1,136

-176

-16.9

Enel

Geothermal fluid(TJ)

53,04753,94353,452

-896

-1.7

Enel

Total direct consumption(TJ)

806,729 1,108,069 1,099,302-301,340

-27.2

Enel

206,450

141,528

Fuel consumption by primary source in Mtoe
from non-renewable sources(Mtoe)

18.0

25.2

25.0

-7.2

-28.6

Enel

Coal

(Mtoe)

2.8

4.9

3.4

-2.1

-42.9

Enel

Lignite(Mtoe)

-

-

-

-

-

Enel

Fuel oil(Mtoe)

0.8

0.9

0.8

-0.1

-11.1

Enel

Natural gas(Mtoe)

6.6

11.2

13.1

-4.6

-41.1

Enel

Diesel oil(Mtoe)

1.5

1.4

1.2

0.1

7.1

Enel

Uranium(Mtoe)

6.3

6.8

6.5

-0.5

-7.4

Enel

from renewable sources(Mtoe)

1.3

1.3

1.3

-

-

Enel

Biomass, biogas and waste(Mtoe)

0.02

0.02

0.03

-

-

Enel

Geothermal fluid(Mtoe)

1.3

1.3

1.3

-

-

Enel

Total direct consumption(Mtoe)

19.3

26.5

26.3

-7.2

-27.2

Enel

Coal

(%)

15.6

19.6

11.2

-4.0

-

Enel

Lignite

(%)

-

-

-

-

-

Enel

Fuel oil

(%)

4.3

3.4

2.8

0.9

-

Enel

Natural gas

(%)

36.7

44.6

43.5

-7.9

-

Enel

Diesel oil

(%)

8.1

5.6

3.8

2.5

-

Enel

Uranium

(%)

35.3

26.9

21.4

8.4

-

Enel

(TJ)

10,692

11,62023,878

-928

-8.0

Enel

Incidence of fuel consumption from nonrenewable sources

302-1 Indirect energy consumption by destination
Total electricity consumption

384 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

KPI

3

Stakeholder engagement andmateriality analysis

UM

4

Performance 2023

December December December
2023
2022
2021 2023-2022

5

Appendix%

Scope

RAW MATERIALS
Resources used in the production process
301-1 Fuel consumption for thermoelectric production
from non-renewable sources
Coal(,000 t)

4,817

8,522

5,958

-3,705

-43.5

Enel

Lignite(,000 t)

-

-

-

-

-

Enel

Fuel oil(,000 t)

807

889

863

-82

-9.2

Enel

Natural gas(mil m3)

7,673

13,214

15,682-5,541

-41.9

Enel

Diesel oil(,000 t)

1,061

1,262

1,033

-201

-15.9

Enel

from renewable sources
Biomass and waste for thermoelectric production(,000 t)

55

65

71

-10

-15.4

Enel

Biogas(mil m3)

0.3

1.2

0.7

-0.9

-75.0

Enel

Geothermal steam used for electricity production(,000 t)48,94349,947350,160-1,004

-2.0

Enel

Lime

(,000 t)

96.2

110.7

61.9

48.8

44.1

Enel

Ammonia(,000 t)

17.0

37.0

20.4

-20.0

-54.1

Enel

Caustic soda(,000 t)

65.3

47.4

65.0

17.9

37.8

Enel

Slaked lime(,000 t)

3.3

4.6

3.3

-1.3

-28.3

Enel

Sulfuric/chloride acid(,000 t)

4.7

7.3

8.7

-2.6

-35.6

Enel

Other

(,000 t)

19.0

34.7

26.8

-15.7

-45.2

Enel

Total

(,000 t)

205.5

241.8

186.2

-36.3

-15.0

Enel

Lubricant oil

(%)

6.50

3.15

11.85

3.35

-

Enel

Dielectric oil

(%)

62.57

53.84

67.04

8.73

-

Enel

Paper for printing

(%)

16.27

3.43

2.16

12.84

-

Enel

301-1 Consumables

301-2 Percentage of materials used that derive fromrecycled material
compared to the total consumption of each resource

Water
Volumes of water used in the production process
For thermal production(,000 ML)

37.6

56.5

52.8

-18.9

-33.4

Enel

For nuclear production(,000 ML)

16.9

19.0

19.6

-2.0

-10.8

Enel

For other production and industrial uses(,000 ML)

0.4

0.5

0.7

-0.1

-17.6

Enel

Total withdrawals for the production process(,000 ML)

55.0

76.0

73.1

-27.8

-36.6

Enel

Specific freshwater withdrawal(l/kWheq)

0.20

0.23

0.25

-0.03

-13.0

Enel

Withdrawals from scarce water sources(,000 ML)

41.3

53.7

56.4

-12.4

-23.2

Enel

Surface water (wetlands, lakes, rivers) Total(,000 ML)

28.8

37.9

40.5

-9.1

-24.0

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

28.3

37.3

40.3

-8.9

-24.0

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

0.5

0.6

0.2

-0.1

-23.2

Enel

(,000 ML)

8.0

9.5

9.9

-1.5

-15.6

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

8.0

9.4

9.9

-1.4

-14.7

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

-

0.1

-

-0.1

-82.5

Enel

(,000 ML)

4.4

6.3

6.0

-1.9

-29.6

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

4.2

6.0

5.3

-1.8

-29.8

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

0.2

0.3

0.7

-0.1

-27.1

Enel

Withdrawals from non scarce sources(,000 ML)

13.7

22.3

16.7

-8.6

-38.5

Enel

Seawater (used as is and desalinated)

303-3 Process water withdrawals by source

Ground water (from wells) Total

Water from aqueducts Total(,000 ML)

13.6

22.2

16.6

-8.6

-38.8

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

5.0

5.7

5.0

-0.7

-11.7

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

8.5

16.5

11.6

-7.9

-48.2

Enel

from wastewater (amount used inside plants)(,000 ML)

0.1

0.1

0.1

-

-

Enel

Total

(,000 ML)

55.0

76.0

73.1

-21.0

-27.7

Enel

Performance indicators 385

GRI/
EUSS

December December December
2023
2022
2021 2023-2022

KPI

UM

%

Scope

Percentage of recycled and reused water

(%)

8.6

9.4

8.3

-0.8

-

Enel

Total

(,000 ML)

10,866.3

13,651.7

from surface water(,000 ML)

2,981.1

4,782.6

14,956.3-2,785.5

-20.4

Enel

6,213.0-1,801.5-37.7

from sea water(,000 ML)

7,885.2

Enel

8,869.2

8,743.3-984.0-11.1

Total withdrawals(,000 ML)Enel

10,914.4

13,727.7

15,011.9-2,813.3

-20.5

Enel

Withdrawals from scarce sources
Surface water (wetlands, lakes, rivers)(,000 ML)

10.7

12.7

15.5

-2.0

-16.0

Enel

(,000 ML)

5.1

5.8

8.5

-0.7

-11.6

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

5.0

5.7

8.5

-0.7

-12.7

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

0.1

0.1

-

-

-

Enel

(,000 ML)

4.7

5.8

6.4

-1.1

-18.7

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

4.7

5.8

6.4

-1.1

-19.1

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

-

-

-

-

-

Enel

Water withdrawal for open-cycle cooling303-3 Process water withdrawals by source in water
stressed areas(13)Ground water (from wells)

Water from aqueducts (industrial and civil)(,000 ML)

0.8

1.1

0.6

-0.3

-24.8

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

0.6

0.8

0.4

-0.2

-24.9

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

0.2

0.3

0.3

-0.1

-33.3

Enel

Withdrawals from non scarce sources(,000 ML)

2.1

1.9

1.3

0.2

10.5

Enel

Seawater (used as is and desalinated)(,000 ML)

2.1

1.9

1.3

0.2

10.5

Enel

- fresh water (=<1,000 mg/l total dissolved solids)(,000 ML)

1.1

0.9

0.8

0.2

25.5

Enel

- other water (>1,000 mg/l total dissolved solids)(,000 ML)

0.9

1.0

0.5

-

-

Enel

from wastewater (share used within facilities)(,000 ML)

-

-

-

-

-

Enel

Total

(,000 ML)

12.8

14.6

16.8

-1.8

-12.6

Enel

Water discharge by destination (total)(,000 ML)

10,885.8

13,682.4

14,968.0-2,796.7

-20,4

Enel

Surface water (wetlands, lakes, rivers)(,000 ML)2,987.7

4,785.5

6,189.1-1,797.8

-37,6

Enel

Groundwater(,000 ML)

-

-

-

-

-

Enel

Water in municipal/industrial treatment plants(,000 ML)

1.9

3.0

6.4

-1.1

-36,7

Enel

Third-party water(,000 ML)

73.3

79.6

89.0

-6.3

-7,9

Enel

Sea water(,000 ML)

7,822.9

8,814.5

8,683.5-991.6

-11,2

Enel

303-5 Water consumptions(,000 ML)

35.4

45.2

43.8

-9.7

-21.5

Enel

(,000 ML)

7.9

9.3

10.5

-1.4

-15.4

Enel

Non-hazardous waste(t) 3,182,083

3,300,765

3,008,536-118,682

-3.6

Enel

Hazardous waste(14)(t)

55,94064,365

12,76422.8

Enel

Total waste produced(t) 3,250,786 3,356,705 3,072,901-105,919

-3.2

Enel

of which ash gypsum(t)739,883

1,129,818

744-389,935

-34.5

Enel

of which oils

(t)

6,598

5,273

5,495

1,325

25.1

Enel

of which construction and demolition waste(t) 1,178,442 1,063,564 1,052,701

114,878

10.8

Enel

Total waste sent for recovery

(%)

85.34

84.39

85.30

0.95

-

Enel

Recycled or sent for recovery(t)32,411

21,96038,41810,451

47.6

Enel

Landfill

(t)

7,155

5,270

7,972

1,885

35.8

Enel

Incineration with energy recovery

(t)

2,274

853

684

-

-

Enel

Incineration without energy recovery

(t)

122

451

752

-

-

Enel

Other disposal methods(t)

26,742

27,406

16,539

-

-

Enel

Total

(t)

68,70455,94064,365

12,76422.8

Enel

Recovery (including energy recovery)(t) 2,741,839

2,810,895

2,622,376-69,056

-2.5

Enel

Landfill(t)354,004

417,728

386,160-63,724

-15.3

Enel

Incineration with energy recovery

(t)

344

572

551

-

-

Enel

Incineration without energy recovery

(t)

89

16

103

-

-

Enel

Other disposal methods(t)85,93571,55539,717

-

-

Enel

Total

(t) 3,182,083 3,300,765 1,121,054-118,682

-3.6

Enel

303-4 WATER DISCHARGE

Consumption in water stressed areas306-3 WASTE PRODUCED68,704306-4;
Hazardous waste by disposal method
306-5

306-4;
Non-hazardous waste by disposal method
306-5

386 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

KPI

Stakeholder engagement andmateriality analysis

UM

4

Performance 2023

December December December
2023
2022
2021 2023-2022

5

Appendix%

Scope

Mitigation of the impact on the landscape/territory(15)

LV/MV cabling ratio

(%)

67.3

60.7

60.5

6.6

-

Enel

LV cabling ratio

(%)

84.5

82.9

82.9

1.6

-

Enel

MV cabling ratio

(%)

37.9

30.1

29.3

7.8

-

Enel

2023 assessment of biodiversity project impacts

Number of sites

Hectares

Number of sites and total area used for operational activities

612

61,352

Assessment
Sites where biodiversity impact assessments have been carried out in the last five years

612

61,352

Exposure
Sites with biodiversity impact assessment in proximity to critical areas and total area of these sites

228

9,024

Management plans
Sites with biodiversity impact assessment located in proximity to critical areas that have a biodiversity
management plan in place, and total area of these sites

14

1,233

(1) Figures for 2021 and 2022 also include the contribution of heat from plants in Russia sold in 2022.
(2) This share includes emissions as a result of:• the combustion of fossil fuels: for electricity generation (CH4 and N2O); in auxiliary generation and distribution engines (CO2, CH4 and N2O); in building
heating systems (CO2, CH4 and N2O); and in the corporate fleet of vehicles (CO2, CH4 and N2O);• greenhouse gas leakages related to: NF3, in photovoltaic panel generation; SF6, in power plants and distribution assets; HFCs, in power plants and buildings; CH4 in gas-fired power plants; and biogenic CH4 from hydropower reservoirs.
(3) This share includes emissions as a result of:• electricity taken from the grid for consumption in power plants (including pumped storage hydropower plants), port terminals, buildings, and 3Sun. The
calculation is made as the product of electricity consumption by the respective coefficients of specific emissions of the electricity systems of the countries in which the Enel Group operates (source National Authority or Enerdata data), following the GHG Protocol indications with respect to the location
based and market-based models. In particular, the Scope 2 market-based calculation takes into account cancelled guarantees of origin in Italy and Iberia;• emissions from technical losses of energy from the power distribution activity. These are calculated based on the part of energy fed into the grid thatexceeds the share produced in the country in question, so as to avoid any double counting of emissions already included in Scope 1. The emissions arecalculated according to the dual location and market-based view.
The 2021 and 2022 values have been restated following an update of the methodology for calculating energy consumption in distribution assets and also
the update of emission factors of national power systems.
(4) “Scope 3”• Category 1: Procurement of goods and services (Supply Chain): the calculation considers GHG emissions related to supplies, works and services. For supplies, the calculation is based on the average value of EPD (Environmental Product Declaration) or ISO CFP certifications for more than 60% of purchased
supplies; the remainder was estimated through international databases (Ecoinvent/Exiobase). Emissions from works have been estimated based on datafrom sustainable construction sites and emissions of services have been estimated using international databases.
• Category 3: Fuel and energy-related activities not included in Scope 1 and 2: the calculation considers indirect GHG emissions for fugitive emissions ofmethane (CH4) related to the extraction process of coal imported and used for thermal power generation; transportation of coal and ash by sea; transportation of biomass and fuel-oil by road; the extraction and transportation of natural gas considering both the share related to gas used in thermal power
plants and sold in the retail market; emissions related to energy purchased for sale to end customers (calculated as the product of the fraction sold but
not generated by Enel and the emission factor of electric systems).
• Category 4: Upstream transport and distribution (transport of raw materials and waste): this calculation considers indirect GHG emissions for emissions
related to transport of consumables and waste by road.
• Category 11: Use of products sold (Use of gas sold to the end customer): the value for emissions from the combustion of natural gas is calculated basedon the energy amount (TWh) of gas sold multiplied by its emission factor (source: IPCC for CO2, N2O e CH4).		
(5) The 2021 and 2022 values were restated following an update of the emission factors of national power systems.		
(6) The 2021 and 2022 values were restated following an update in the calculation methodology based on the calorific value of natural gas volumes sold to end
customers.
(7) The specific emissions were calculated considering total direct emissions (Scope 1) in relation to total renewable, nuclear and thermoelectric generation.
Figures for 2021 and 2022 also include the contribution of heat from plants in Russia sold in 2022.		
(8) Specific emissions are calculated by considering the total direct CO2 emissions related to electricity generation as a ratio of total renewable, nuclear andthermoelectric generation. Figures for 2021 and 2022 also include the contribution of heat from plants in Russia sold in 2022.		
(9) KPI corresponding to the target certified by SBTi in 2022. The specific emissions were calculated considering total direct emissions (Scope 1) related to
the generation of electricity (including CO2, CH4, N2O), in relation to total renewable (excluding pumped storage generation), nuclear and thermoelectric.
Figures for 2021 and 2022 also include the contribution of heat from plants in Russia sold in 2022.
(10) KPI corresponding to the target certified by SBTi in 2022. The specific emissions are calculated considering the combination of total direct emissions(Scope 1) related to electricity generation (including CO2, CH4, N2O) and the Group’s direct GHG emissions (Scope 3) deriving from the generation of electricity purchased and sold to end customers, in relation to total renewable (excluding pumped-storage generation), nuclear and thermoelectric generation,and total electricity purchases. Figures for 2021 and 2022 also include the contribution of heat from plants in Russia sold in 2022.
(11) Avoided Group emissions are calculated as the sum of the avoided emissions in the various countries. The resulting value is calculated as the product of thegeneration of electricity obtained from a renewable or nuclear source and the specific CO2 emissions from the thermoelectric generation of the country
in which Enel is present (source: Enerdata).
(12) Mercury emissions in 2023 amounted to 44 kg, associated with thermoelectric generation for Italy and Spain, which account for almost 100% of coal-fired
thermoelectric generation throughout the Group. This is in addition to the mercury emissions from the geothermal sector, amounting to 422 kg. In Europe,
mercury emissions are declared to the competent authorities for registration in the European Pollutant Release and Transfer Register (E-PRTR) in accordance with EU Regulation no. 166/2006 and are subject to the relevant checks in terms of completeness, consistency and credibility (Article 2 of Regulation
no. 166/2006).
(13) GRI 303 has defined as “water stressed” areas those in which, on the basis of the classification provided by the WRI Aqueduct Water Risk Atlas, the ratio
between the total annual withdrawal of surface water or groundwater for different uses (civil, industrial, agricultural and livestock) and the total annual renewable water supply available (“base water stress”, understood, therefore, as the level of competition between all users) is high (40-80%) or extremely high(>80%). It is further specified that thermal plants using freshwater are included in this category. By way of greater environmental protection, Enel has also
considered as located in water stressed areas those plants falling in zones classified by the WRI as “arid”.
(14) Hazardous waste is reported by countries and regions below:

Performance indicators

387

UM

December
2023

December2022

December
2021

2023-2022

%

Italy

(t)

44,67329,061

29,306

15,612

53.7

Italy

Iberia(t)

16,46813,857

11,786

2,611

18.8

IberiaLatin America

(t)

6,878

9,090

13,777-2,212-24.3

Latin America- Chile

(t)

956

1,093

741

-137

-12.5

Chile

- Argentina

(t)

460

1,111

2,106

-651

-58.6

Argentina- Colombia

(t)

1,101

1,231

1,364

-130

-10.6

Colombia

KPI

Scope

Hazardous waste by significant geographicalareas- Peru

(t)

1,359

1,142

905

217

19.0

Peru

- Brazil

(t)

2,995

4,500

8,658

-1,505-33.4

Brazil- others

(t)

9

12

3

-3

-25.0

Other

Europe

(t)

388

3,733

9,254

-3,345-89.6

Europe- Russia

(t)

-

1,924

7,368

-1,924-100.0Russia- Romania

(t)

374

1,802

1,859

-1,428-79.2

Romania- Greece

(t)

14

7

27

7

100.0

Greece

Other

(t)

296

199

243

97

48.7

Other

Italy

(t)

2,675,803

2,735,469

667,663-59,666

-2.2

Italy

Iberia(t)

146,893

201,380

110,465-54,487-27.1

IberiaLatin America(t)356,648357,387

327,563

-739

-0.2

Latin America- Chile(t)

41,122

97,520120,645-56,398

-57.8

Chile

- Argentina

(t)

1,579

2,793

2,629

-1,214-43.5

Argentina- Colombia(t)66,013

100,705

98,182-34,692-34.4

Colombia- Peru(t)40,59930,03919,397

10,56035.2

Peru- Brazil(t)

207,200

126,165

86,52081,035

64.2

Brazil- others

(t)

135

166

189

-31

-18.7

Other

Europe

(t)

2,220

6,140

14,969-3,920-63.8

Europe- Russia

(t)

-

1,365

9,828

-1,365-100.0Russia- Romania

(t)

2,219

4,775

5,134

-2,556-53.5

Romania- Greece

(t)

1

-

6

1

-

Greece

Other

(t)

518

389

393

129

33.2

Other

Non-hazardous waste by significant countries
and regions(15) The cabling ratio is calculated by proportioning the km of cabled lines (both underground and aerial insulated cables) to the total km of lines. The increasein the cabling ratio over the years is due to a general increase, in terms of length, of aerial and underground cable sections at the expense of the bareconductor line.

388 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Enel people
GRI/
EUSS

UM

December
2023

December
2022

Total workforce(no.)

61,055

65,124

66,279-4,069-6.2

Enel- of which men(no.)

47,20249,89951,341-2,697

-5.4

Enel

KPI

December
2021 2023-2022

%

Scope

SIZE AND COMPOSITION OF WOKFORCE
2-7

Size of workforce- of whom men (%)

(%)

77.3

76.6

77.5

0.7

-

Enel

- of which women(no.)

13,853

15,225

14,938-1,372-9.0

Enel- of which women (%)

(%)

22.7

23.4

22.5

-0.7

-

Enel

Average workforce(no.)

64,396

66,47565,976-2,079

-3.1

Enel

(no.)

31,47031,66430,276

-194

-0.6

Italy

- of which men(no.)

24,802

24,94324,136

-141

-0.6

Italy

- of which women

(no.)

6,668

6,721

6,140

-53

-0.8

Italy

Iberia(2)

(no.)

9,504

9,643

9,518

-139

-1.4

Iberia- of which men

(no.)

6,951

7,091

7,084

-140

-2.0

IberiaWorkforce by geographic area and gender
Italy(1)- of which women

(no.)

2,553

2,552

2,434

1

-

IberiaEurope(3)

(no.)

139

3,532

4,994

-3,393-96.1

Europe- of which men

(no.)

102

2,408

3,478

-2,306-95.8

Europe- of which women

(no.)

37

1,124

1,516

-1,087-96.7

EuropeNorth America(4)

(no.)

1,747

2,100

1,914

-353

-16.8

North
America- of which men

(no.)

1,240

1,475

1,352

-235

-15.9

North
America- of which women

(no.)

507

625

562

-118

-18.9

North
America

Latin America(5)(no.)

17,471

17,361

18,763

110

0.6

Latin
America- of which men(no.)

13,60813,412

14,712

196

1.5

Latin
America- of which women

(no.)

3,863

3,949

4,051

-86

-2.2

Latin
America

Africa, Asia and Oceania(6)

(no.)

724

824

814

-100

-12.1

Africa,Asia and
Oceania- of which men

(no.)

499

570

579

-71

-12.5

Africa,Asia and
Oceania- of which women

(no.)

225

254

235

-29

-11.4

Africa,Asia and
Oceania

(no.)

1,310

1,366

1,377

-56

-4.1

Enel

405-1 Workforce by level and gender
ManagerManager

(%)

2.1

2.1

2.1

-

-

Enel

- of which men

(no.)

966

1,025

1,052

-59

-5.8

Enel

- of which women

(no.)

344

341

325

3

0.9

Enel

Middle Manager(no.)

12,38912,645

12,242

-256

-2.0

Enel

Middle Manager

(%)

20.3

19.4

18.5

0.9

-

Enel

- of which men

(no.)

8,286

8,523

8,403

-237

-2.8

Enel

- of which women

(no.)

4,103

4,122

3,839

-19

-0.5

Enel

White-collar(no.)

31,30834,63435,556-3,326-9.6

Enel

White-collar

(%)

51.3

53.2

53.6

-1.9

-

Enel

- of which men(no.)

22,116

24,07825,138-1,962-8.1

Enel

Performance indicators 389

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021 2023-2022- of which women

(no.)

9,192

10,556

10,418Blue-collar(no.)

16,04816,478Blue-collar

(%)

26.3

25.3

- of which men(no.)

15,833- of which women

(no.)

215

Italy(1)(no.)

31,470People on total Group people

(%)

51.5

People on total Group Managers

(%)

64.8

%

Scope

-1,364

-12.9

Enel

17,104

-430

-2.6

Enel

25.8

1.0

-

Enel

16,272

16,748

-439

-2.7

Enel

207

357

8

3.9

Enel

31,66430,276

-194

-0.6

Italy

48.6

45.7

2.9

-

Italy

63.3

60.1

1.5

-

Italy

Percentage of Managers by geographical area

People on total not Group Managers

(%)

51.3

48.3

45.4

2.9

-

Italy

Iberia(2)

(no.)

9,504

9,643

9,518

-139

-1.4

IberiaPeople on total Group people

(%)

15.6

14.8

14.4

0.8

-

IberiaPeople on total Group Managers

(%)

18.2

17.9

20.3

0.3

-

IberiaPeople on total not Group Managers

(%)

15.5

14.7

14.2

0.8

-

IberiaBrazil

(no.)

8,149

7,510

8,970

639

8.5

BrazilPeople on total Group people

(%)

13.3

11.5

13.5

1.8

-

BrazilPeople on total Group Managers

(%)

5.2

5.1

4.7

0.1

-

BrazilPeople on total not Group Managers

(%)

8.1

8.0

9.8

0.1

-

BrazilArgentina

(no.)

3,622

4,007

4,054

-385

-9.6

Argentina

People on total Group people

(%)

5.9

6.2

6.1

-0.2

-

Argentina

People on total Group Managers

(%)

2.0

2.0

1.7

-0.1

-

Argentina

People on total not Group Managers

(%)

6.0

6.2

6.2

-0.2

-

Argentina

Chile

(no.)

2,112

2,219

2,271

-107

-4.8

Chile

People on total Group people

(%)

3.5

3.4

3.4

0.1

-

Chile

People on total Group Managers

(%)

3.7

3.5

4.0

0.2

-

Chile

People on total not Group Managers

(%)

3.5

3.4

3.4

0.1

-

Chile

Peru

(no.)

1,091

1,075

988

16

1.5

Peru

People on total Group people

(%)

1.8

1.7

1.5

0.1

-

Peru

People on total Group Managers

(%)

1.4

1.5

1.4

-0.1

-

Peru

People on total not Group Managers

(%)

1.8

1.7

1.5

0.1

-

Peru

Colombia

(no.)

2,281

2,327

2,256

-46

-2.0

Colombia

People on total Group people

(%)

3.7

3.6

3.4

0.1

-

Colombia

People on total Group Managers

(%)

3.1

2.6

2.7

0.5

-

Colombia-

Colombia

People on total not Group Managers

(%)

3.7

3.6

3.4

0.1

United States

(no.)

1,412

1,737

1,534

-325

-18.7 United States

People on total Group people

(%)

2.3

2.7

2.3

-0.4

- United States

People on total Group Managers

(%)

1.2

1.3

1.1

-0.1

- United States

People on total not Group Managers

(%)

2.3

2.7

2.3

-0.4

- United States

(no.)

7,661

8,543

7,761

-882

-10.3

Enel

(%)

12.5

13.1

11.7

-0.6

-

Enel

405-1 Workforce by age range and level<30- of whom Managers

(%)

-

-

-

-

-

Enel

- of whom Middle Managers

(%)

2.3

2.9

2.4

-0.6

-

Enel

- of whom White-collar

(%)

11.5

13.1

10.5

-1.6

-

Enel

- of whom Blue-collar

(%)

23.6

22.2

20.7

1.4

-

Enel

30 - 50(no.)

35,111

36,79538,024-1,684

-4.6

Enel

(%)

57.6

56.5

57.4

1.1

-

Enel

(%)

49.7

51.4

46.8

-1.7

-

Enel

- of whom Managers

390 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

2-7

2-7

Stakeholder engagement andmateriality analysis

KPI

UM

December
2023

December2022- of whom Middle Managers

(%)

64.1

65.0

- of whom White-collar

(%)

54.0

53.2

- of whom Blue-collar

(%)

59.8

57.4

>50

(no.)

18,283

19,786

(%)

29.9

30.4

4

Performance 2023

December
2021 2023-2022

5

Appendix

%

Scope

-0.9

-

Enel

52.1

0.8

-

Enel

58.0

2.4

-

Enel

20,494-1,503

-7.6

Enel

30.9

-0.5

-

Enel

56.9

- of whom Managers

(%)

50.3

48.6

46.2

1.7

-

Enel

- of whom Middle Managers

(%)

33.6

32.1

27.4

1.5

-

Enel

- of whom White-collar

(%)

34.5

33.8

33.1

0.7

-

Enel

- of whom Blue-collar

(%)

16.6

20.4

21.3

-3.8

-

Enel

(years)

43.6

43.6

43.8

-

-

Enel

Permanent contracts(no.)

60,54064,37765,453-3,837-6.0

Enel- of which men(no.)

46,84049,38750,803-2,547-5.2

Enel- of which women(no.)

13,70014,98914,650-1,289-8.6

Enel

Fixed-term contracts

(no.)

515

747

826

-232

-31.1

Enel

- of which men

(no.)

362

511

537

-149

-29.2

Enel

- of which women

(no.)

153

236

289

-83

-35.2

Enel

Use of fixed-term contracts and inclusion/
Centre for Labor Training (CFL) of the total

(%)

0.8

1.1

1.2

-0.3

-

Enel

Internship and traineeships

(no.)

971

799

1,083

172

21.5

Enel

Temporary workers

(no.)

213

997

842

-784

-78.6

Enel

Italy(1)(no.)

31,47031,66430,276

-194

-0.6

Italy

Permanent contracts(no.)

31,467

31,66230,263

-195

-0.6

Italy

Average age
2-7

3Workforce by type of contract and gender

Workforce by type of contract and geographic
area 		

Fixed-term contracts

(no.)

3

2

13

1

50.0

Italy

Iberia(2)

(no.)

9,504

9,643

9,518

-139

-1.4

IberiaPermanent contracts

(no.)

9,384

9,423

9,281

-39

-0.4

IberiaFixed-term contracts

(no.)

120

220

237

-100

-45.5

IberiaLatin America(5)(no.)

17,471

17,361

18,763

110

0.6

Latin
America

Permanent contracts(no.)

17,096

16,89318,304

203

1.2

Latin
America

Fixed-term contracts

(no.)

375

468

459

-93

-19.9

Latin
America

Europe(3)

(no.)

139

3,532

4,994

-3,393-96.1

EuropePermanent contracts

(no.)

139

3,495

4,883

-3,356-96.0

EuropeFixed-term contracts

(no.)

-

37

111

-37

-100.0EuropeNorth America(4)

(no.)

1,747

2,100

1,914

-353

-16.8

North
America

Permanent contracts

(no.)

1,733

2,086

1,909

-353

-16.9

North
America

Fixed-term contracts

(no.)

14

14

5

-

-

North
America

Africa, Asia and Oceania(6)

(no.)

724

824

814

-100

-12.1

Africa,Asia and
Oceania

Permanent contracts

(no.)

721

818

813

-97

-11.9

Africa,Asia and
Oceania

Fixed-term contracts

(no.)

3

6

1

-3

-50.0

Africa,Asia and
Oceania

Workforce by type of contract and gender

Performance indicators

391

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021 2023-2022

Full-time contracts(no.)

60,59064,61965,689- of which men(no.)

47,11449,801- of which women(no.)

13,476

14,818Part-time contracts

(no.)

465

- of which men

(no.)

88

- of which women(no.)

Percentage of part-time

(%)

Italy

(%)

Brazil

(%)

13.3

11.5

Spain

(%)

15.2

14.4

Argentina

(%)

5.8

6.0

Colombia

(%)

3.8

3.6

Chile

(%)

3.2

3.2

Other

(%)

7.5

8.0

Italy

(%)

50.8

49.0

Brazil

(%)

4.9

4.8

Spain

(%)

30.6

29.7

Argentina

(%)

1.8

2.1

Colombia

(%)

2.3

Chile

(%)

2.8

Other

(%)

New hires

%

Scope

-4,029-6.2

Enel51,209-2,687-5.4

Enel

14,480-1,342

-9.1

Enel

505

590

-40

-7.9

Enel

98

130

-10

-10.2

Enel

377

407

460

-30

-7.4

Enel

0.8

0.8

0.9

-

-

Enel

51.2

48.3

45.4

2.9

-

Italy

13.5

1.8

-

Brazil

14.0

0.8

-

Spain

6.0

-0.2

-

Argentina

3.4

0.2

-

Colombia

3.2

-

-

Chile

9.4

-0.5

-

Other

47.8

1.8

-

Italy

5.1

-

-

Brazil

29.0

0.9

-

Spain

2.1

-0.4

-

Argentina

2.2

2.1

0.1

-

Colombia

2.7

2.9

0.1

-

Chile

6.8

7.1

8.3

-0.3

-

Other

(no.)

3,837

6,412

5,401

-2,575

-40.2

Enel

Changes in scope(no.)-3,868-3,153

23

-715

22.7

Enel

Terminations

(no.)

4,038

4,414

5,862

-376

-8.5

Enel

Balance(no.)-4,069-1,155-438-2,914

-

Enel

(no.)

3,837

6,412

5,401

-2,575

-40.2

Enel

Workforce by nationality
DJSI
3.1.3

Total workforce

Workforce in management positions (Manager
and Middle Manager)

401-1 CHANGES TO SIZE
Change in workforce numbers(7)New hires
New hires by gender
Hiring rate

(%)

6.3

9.8

8.1

-3.5

-

Enel

- men

(no.)

3,153

4,356

3,764

-1,203

-27.6

Enel

(%)

82.2

67.9

69.7

14.3

-

Enel

- women

(no.)

684

2,056

1,637

-1,372

-66.7

Enel

(%)

17.8

32.1

30.3

-14.3

-

Enel

New hires by age range

(no.)

3,837

6,412

5,401

-2,575

-40.2

Enel

up to 30

(no.)

1,627

3,359

2,579

-1,732

-51.6

Enel

(%)

42.4

52.4

47.8

-10.0

-

Enel

(no.)

2,054

2,905

2,653

-851

-29.3

Enel

(%)

53.5

45.3

49.1

8.2

-

Enel

(no.)

156

148

169

8

5.4

Enel

(%)

4.1

2.3

3.1

1.8

-

Enel

(no.)

1,036

2,866

1,697

-1,830

-63.9

Italy

(%)

27.0

44.7

5.6

-17.7

-39.6

Italy

(8)

30 - 50 years oldover 50
New hires by geographic area
Italy(1)392

Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

AppendixUM

December
2023

December
2022

Iberia

(no.)

395

741

(%)

10.3

11.6

7.3

-1.3

-

IberiaEurope(3)

(no.)

104

443

439

-339

-76.5

Europe

(%)

2.7

6.9

8.8

-4.2

-

Europe

(no.)

253

614

636

-361

-58.8

North
America

(%)

6.6

9.6

33.2

-3.0

-

North
America

(no.)

1,921

1,542

1,704

379

24.6

Latin
America

(%)

50.1

24.0

9.1

26.1

-

Latin
America

(no.)

128

206

232

-78

-37.9

Africa,Asia and
Oceania

(%)

3.3

3.2

28.5

0.1

-

Africa,Asia and
Oceania

(%)

37.0

9.4

9.3

27.6

-

Enel

Causes

(no.)

4,038

4,414

5,862

-376

-8.5

Enel

Voluntary terminations

(no.)

1,385

1,477

1,271

-92

-6.2

Enel

Incentive based terminations

(no.)

1,316

1,853

3,532

-537

-29.0

Enel

Retirements and other

(no.)

1,337

1,084

1,060

253

23.3

Enel

- men

(no.)

3,093

3,391

4,779

-298

-8.8

Enel

(%)

76.6

76.8

81.5

-0.2

-

Enel

- women

(no.)

945

1,023

1,083

-78

-7.6

Enel

(%)

23.4

23.2

18.5

0.2

-

Enel

KPI
(2)

North America(4)Latin America(5)Africa, Asia and Oceania(6)Open positions filled by internal candidates

December
2021 2023-2022

5

694

-346

%

Scope

-46.7

IberiaTerminations

Terminations by gender

Terminations by age range
up to 30
30 - 50 years oldover 50

(no.)

497

655

702

-158

-24.1

Enel

(%)

12.3

14.8

12.0

-2.5

-

Enel

(no.)

1,804

1,759

2,275

45

2.6

Enel

(%)

44.7

39.9

38.8

4.8

-

Enel

(no.)

1,737

2,000

2,885

-263

-13.2

Enel

(%)

43.0

45.3

49.2

-2.3

-

Enel

(no.)

1,230

1,224

1,249

6

0.5

Italy

(%)

30.5

27.7

4.1

2.7

-

Italy

(no.)

534

578

956

-44

-7.6

Iberia

(%)

13.2

13.1

10.0

0.1

-

Iberia

(no.)

174

454

406

-280

-61.7

Europe

(%)

4.3

10.3

8.1

-6.0

-

Europe

(no.)

606

428

361

178

41.6

North
America

(%)

15.0

9.7

18.9

5.3

-

North
America

(no.)

1,348

1,534

2,779

-186

-12.1

Latin
America

(%)

33.4

34.8

14.8

-1.4

-

Latin
America

(no.)

146

196

111

-50

-25.5

Africa,Asia and
Oceania

Terminations by country
Italy(1)Iberia(2)

Europe(3)

North America(4)Latin America(5)Africa, Asia and Oceania(6)Performance indicators

393

GRI/
EUSS

UM

December
2023

December
2022

(%)

3.6

4.4

13.6

(%)

6.6

6.8

- men

(%)

6.6

- women(%)

6.8

up to 30(%)

6.5

30 - 50 years old

(%)

5.1

over 50(%)

9.5

Voluntary turnover rate

(%)

2.3

- men

(%)

- women

KPI

December
2021 2023-2022

%

Scope

-0.8

-

Africa,Asia and
Oceania

8.8

-0.2

-

Enel

6.8

9.5

-0.2

-

Enel

6.7

7.5

0.1

-

Enel

7.7

9.0

-1.2

-

Enel

4.8

6.0

0.4

-

Enel

10.1

14.1

-0.6

-

Enel

2.3

1.9

-

-

Enel

1.6

1.6

1.3

-

-

Enel

(%)

0.6

0.7

0.6

-0.1

-

Enel

up to 30

(%)

0.5

0.6

0.5

0.3

-

Enel

30 - 50 years old

(%)

1.7

1.5

1.3

0.7

-

Enel

over 50

(%)

0.1

0.1

0.1

-0.1

-

Enel

Dissemination of assessment

(%)

89.3

87.0

89.2

2.3

-

Enel

- men

(%)

88.5

86.4

88.6

2.1

-

Enel

- women

(%)

91.7

89.0

91.4

2.7

-

Enel

Manager

(%)

96.3

97.3

97.2

-1.0

-

Enel

Middle Manager

(%)

94.4

92.6

93.2

1.8

-

Enel

White-collar

(%)

91.0

88.2

88.6

2.8

-

Enel

Blue-collar

(%)

81.2

79.3

79.1

1.9

-

Enel

Dissemination of incentives

(%)

44.2

41.5

43.1

2.7

-

Enel

Employees with incentive by level(no.)

26,96327,05028,568

-87

-0.3

Enel

- of whom Managers

(no.)

1,301

1,349

1,351

-48

-3.6

Enel

- of whom Middle Managers

(no.)

8,286

8,224

7,915

62

0.8

Enel

- of whom White-collar and Blue-collar(no.)

17,377

17,477

19,308

-100

-0.6

Enel

Percentage of sustainability objectives assigned

(%)

31.3

25.3

30.0

6.0

-

Enel

(h/percap)

48.1

47.4

44.6

0.7

1.5

Enel

- men

(h/percap)

50.7

48.3

46.5

2.4

5.0

Enel

- women(h/percap)

39.7

44.3

37.7

-4.6

-10.4

Enel

Manager(h/percap)

34.0

44.1

29.6

-10.1

-22.9

Enel

Middle Manager(h/percap)

42.9

47.4

41.9

-4.5

-9.5

Enel

White-collar(h/percap)

40.3

43.0

38.4

-2.7

-6.3

Enel

Turnover rate(9)Turnover rate by genderTurnover rate by age range

Voluntary turnover rate by gender

Voluntary turnover rate by age range

ENHANCEMENT
404-3 Assessment(10)People assessed by level

Rewarding404-1 Training
Training hours by employees
by gender:

by level:

394 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

December
2023

December
2022(h/percap)

69.3

57.1

60.3

Total training hours(,000 h)

3,099

3,151

Online training hours(,000 h)1,669

- for managerial training(,000 h)380

- for specialist training(,000 h)1,290

Training hours in the classroom(,000 h)1,429

- for managerial training(,000 h)- for specialist training

KPI

UM

Blue-collar

Performance 2023

December
2021 2023-2022

5

Appendix

%

Scope

12.2

21.4

Enel

2,943

-52

-1.7

Enel

1,943

513

-274

-14.1

Enel

344

204

36

10.4

Enel

1,599

309

-309

-19.4

Enel

1,208

2,430

221

18.3

Enel

101

57

189

45

78.6

Enel

Training hours by type(,000 h)

1,328

1,151

2,241

177

15.4

Enel

Proportion of online training

(%)

53.9

61.7

17.4

-7.8

-

Enel

Total training hours by level(,000 h)

3,099

3,151

2,943

-52

-1.7

Enel

Manager(,000 h)

47

61

41

-14

-23.7

Enel

Middle Manager(,000 h)

540

593

494

-54

-9.1

Enel

White-collar(,000 h)

1,367

1,532

1,362

-166

-10.8

Enel

Blue-collar(,000 h)

1,146

964

1,045

182

18.9

Enel

Training per capita on sustainability(h/percap)

32.2

27.9

26.7

4.3

15.4

Enel

Total training hours on sustainability issues(,000 h)

2,075

1,830

1,763

245

13.4

Enel

Digitalization(,000 h)

480

431

410

48

11.2

Enel

Environment(,000 h)

32

28

58

4

15.0

Enel

Safety(,000 h)

1,452

1,244

1,188

208

16.7

Enel

Human rights(,000 h)

9

7

7

2

31.3

Enel

Code of Ethics(,000 h)

11

15

11

-4

-26.1

Enel

Other

(,000 h)

114

128

88

-14

-10.8

Enel

(no.)

30,30430,56420,074

-260

-0.9

Enel

(%)

49.6

46.9

30.3

2.7

-

Enel

Training on sustainability(11)

Training on anti-corruption policies andprocedures communication
205-2 Total training
Training by geographic area
Italy

(no.)

15,952

17,882

10,443-1,930

-10.8

Italy

Italy

(%)

50.7

56.5

34.5

-5.8

-

Italy

Iberia

(no.)

4,038

4,922

3,564

-884

-18.0

IberiaIberia

(%)

42.5

51.0

37.4

-9

-

IberiaLatin America

(no.)

8,662

5,532

3,339

3,130

56.6

Latin
America

Latin America

(%)

49.6

31.9

17.8

17.7

-

Latin
America

Europe

(no.)

131

426

1,050

-295

-69.2

EuropeEurope

(%)

94.2

12.1

21.0

82.1

-

EuropeAfrica, Asia and Oceania

(no.)

574

122

225

452

-

Africa,Asia and
Oceania

Asia and Oceania

(%)

79.3

14.8

27.7

64.5

-

Asia and
Oceania

North America

(no.)

947

1,682

1,453

-735

-43.7

North
America

North America

54.2

80.1

75.9

-25.9

-

-

North
America

(no.)

631

753

487

-122

-16.2

Enel

Training by level:
Manager

Performance indicators

395

GRI/
EUSS

UM

December
2023

December
2022

(%)

48.2

55.1

35.4

(no.)

6,545

6,133

(%)

52.8

48.5

(no.)

17,464

(%)

55.8

(no.)
(%)

Employees covered by Pension Plan (Benefit Plan)
Employees covered by Pension Plan (Benefit Plan)

KPI

December
2021 2023-2022

%

Scope

-6.9

-

Enel

4,588

412

6.7

Enel

37.5

4.3

-

Enel

16,106

11,251

1,358

8.4

Enel

46.5

31.6

9.3

-

Enel

5,664

7,652

3,747

-1,988

-26.0

Enel

35.3

46.4

21.9

-11.1

-

Enel

(no.)

53,22952,49753,862

732

1.4

Enel

(%)

87.2

80.6

81.3

6.6

-

Enel

Manager

(%)

4.5

4.4

4.5

0.1

-

Enel

Middle Manager

(%)

6.2

5.4

5.0

0.8

-

Enel

White-collar

(%)

9.6

7.8

7.1

1.8

-

Enel

Blue-collar

(%)

6.3

5.1

3.8

1.2

-

Enel

Media

(%)

7.9

6.5

5.7

1.4

-

Enel

Middle Manager
White-collar
Blue-collar
201-3 CORPORATE WELFARE

EU15

Employees entitled to retire in next 5 to 10 years
Pension within 5 years-Enel Group

Pension within 10 years-Enel GroupManager

(%)

21.8

21.8

20.8

-

-

Enel

Middle Manager

(%)

18.9

18.3

17.3

0.6

-

Enel

White-collar

(%)

25.3

24.0

22.9

1.3

-

Enel

Blue-collar

(%)

14.4

14.8

12.6

-0.4

-

Enel

Media

(%)

21.1

20.5

19.1

0.6

-

Enel

Employees entitled to parental leave

(no.)

2,600

2,756

2,605

-156

-5.7

Enel

Men

(no.)

1,798

1,845

1,694

-47

-2.5

Enel

Women

(no.)

802

911

911

-109

-12.0

Enel

Parental leave by gender

(no.)

2,600

2,604

2,605

-4

-0.2

Enel

Men

(no.)

1,798

1,725

1,694

73

4.2

Enel

Women

(no.)

802

879

911

-77

-8.8

Enel

Return to work rate of employees that tookparental leave

(no.)

2,471

2,493

2,840

-22

-0.9

Enel

Men

(no.)

1,770

1,654

1,633

116

7.0

Enel

Women

(no.)

701

839

847

-138

-16.4

Enel

Return-to-work rate of employees who tookparental leave

(%)

95.0

95.7

95.0

-0.7

-

Enel

Men

(%)

98.4

95.9

96.3

2.5

-

Enel

Women

(%)

87.4

95.4

92.7

-8.0

-

Enel

401-3 MATERNITY/PATERNITY-Parental Leave

Retention rate

(%)

97.7

89.7

97.0

8.0

-

Enel

Men

(%)

98.9

91.2

95.3

7.7

-

Enel

Women

(%)

95.2

87.0

100.0

8.2

-

Enel

Number of female Managers and Managers

(no.)

4,447

4,463

4,164

-16

-0.4

Enel

Percentage of female Managers and Middle
Managers(13)

(%)

32.5

31.8

30.6

0.7

-

Enel

Percentage of women in the managerial
succession plans

(%)

47.2

46.1

-

1.1

-

Enel

Percentage of women in succession plans for
Top Managers

(%)

50.4

49.6

-

0.8

-

Enel

(12)

EQUAL OPPORTUNITIES

405-2 Ratio of gross annual salary women to men
Ratio of basic salary women/men(14)396 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

KPI

UM

December
2023

December
2022

Manager

(%)

84.5

83.9

84.6

Middle Manager

(%)

93.9

92.8

White-collar

(%)

92.1

88.8

Blue-collar

(%)

101.4

125.0

Performance 2023

December
2021 2023-2022

5

Appendix

%

Scope

0.6

-

Enel

94.2

1.1

-

Enel

88.4

3.3

-

Enel

111.2

-23.6

-

Enel

Pay ratio women/men(15)Manager

(%)

81.4

80.7

81.1

0.7

-

Enel

Middle Manager

(%)

92.8

91.9

93.2

0.9

-

Enel

White-collar

(%)

92.5

89.3

88.4

3.2

-

Enel

Blue-collar

(%)

102.1

125.4

112.0

-23.3

-

Enel

By gender

(no.)

2,046

2,129

2,152

-83

-3.9

Enel

(%)

3.4

3.3

3.2

0.1

-

Enel

- of which men

(no.)

1,416

1,471

1,480

-55

-3.7

Enel

(%)

69.2

69.1

68.8

0.1

-

Enel

- of which women

(no.)

630

658

672

-28

-4.3

Enel

(%)

30.8

30.9

31.2

-0.1

-

Enel

By age range

(no.)

2,046

2,129

2,152

-83

-3.9

Enel

- up to 30 years of age

(no.)

31

40

44

-9

-22.5

Enel

(%)

0.4

0.5

0.1

-0.1

-

Enel

- from 30-50 years of age

(no.)

931

982

985

-51

-5.2

Enel

(%)

2.7

2.7

1.5

-

-

Enel

- over 50 years of age

(no.)

1,084

1,107

1,123

-23

-2.1

Enel

(%)

5.9

5.6

1.7

0.3

-

Enel

Manager

(no.)

4

4

3

-

-

Enel

(%)

0.3

0.3

-

-

-

Enel

Middle Manager

(no.)

213

201

167

12

6.0

Enel

(%)

1.7

1.6

0.3

0.1

-

Enel

White-collar

(no.)

1,647

1,766

1,814

-119

-6.7

Enel

(%)

5.3

5.1

2.7

0.2

-

Enel

Blue-collar

(no.)

182

158

168

24

15.2

Enel

(%)

1.1

1.0

0.3

0.1

-

Enel

405-1 Disabled or belonging to protected categories

Disabled or belonging to protected categories
by level

Smart working

2-30

Actual users of smartworking(no.)

35,66836,47338,403

-805

-2.2

Enel

Potential users of smartworking(no.)

36,38636,707

39,115

-321

-0.9

Enel

Incidence of smartworking

(%)

98.0

99.4

98.2

-1.4

-

Enel

(%)

46.6

47.3

49.3

-0.7

-

Enel

Total Enel

(no.)

55,41759,25659,582-3,839

-6.5

Enel

(%)

90.8

91.0

89.9

-0.2

-

Enel

Italy

(no.)

31,44931,64330,148

-194

-0.6

Italy

(%)

99.9

99.9

99.6

-

-

Italy

Iberia

(no.)

8,353

8,213

8,687

140

1.7

Iberia

(%)

87.9

85.2

91.3

2.7

-

IberiaEurope

(no.)

-

3,252

4,391

-3,252-Europe

(%)

-

92.1

87.9

-92.1

-

EuropeRELATIONS WITH UNIONS
Union membership in the electricity sector(16)Employees covered by collective agreements,
by geographic area:

Performance indicators

397

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021 2023-2022

Latin America(no.)

15,56316,08916,317

(%)

89.1

92.7

(no.)

52

(%)

%

Scope

-526

-3.3

Latin
America

87.0

-3.6

-

Latin
America

59

39

-7

-11.9

North
America

3.0

2.8

2.0

0.2

-

North
America

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(%)

-

-

-

-

-

Africa,Asia and
Oceania

Total proceedings

(no.)

7,700

7,786

9,384

-86

-1.1

Enel

Incidence of proceedings as defendant

(%)

98.4

98.7

98.9

-0.3

-

Enel

North America

Africa, Asia and Oceania

Disputes with employees(1) Include Branch Enel Trading (Singapore) and the Dutch financial companies.
(2) Includes International Endesa BV (IEBV).
(3) Beginning 2023 the following countries are considered within this scope: Greece, France, Germany, Turkey, United Kingdom, Ireland,
Norway, Poland and Sweden.
(4) Countries considered within the scope: USA, Canada and Mexico.
(5) The following countries are considered within the perimeter: Argentina, Brazil, Chile, Colombia, Peru, Costa Rica, Guatemala and Panama.
(6) The following countries are considered within the scope: India, Kenya, South Africa, Zambia, Australia, Morocco, Singapore, Japan, Taiwan, New Zealand, China, South Korea and Vietnam.
(7) In 2022, there was a change in scope due to the sale of the companies: Enel Generación Costanera and Central Dock Sud SA in Argentina; USME ZE SAS and FONTIBON ZE SAS in Colombia; Avikiran Solar India Private Limited in India; Enel Green Power Australia in Australia;
and the divestment of the Romania and Greece perimeters.
(8) Hiring rate = Total new recruits/Total workforce.
(9) Turnover rate = Total terminations/Total workforce.
(10) It should be noted that for GRI KPI 404-3, the calculation of the assessed percentage considers all head counts and not just thoseeligible by process for the denominator.
(11) Includes training relating to privacy, anti-bribery, community relations and diversity.
(12) Retention rate = loyalty index expressing the percentage of employees who remain in the organization over a given timeframe.
(13) Job classification index = women Managers + Middle Managers/total Managers + Middle Managers.
(14) The overall ERR calculation on the theoretical base salary data for 2023 was 109.4%, for 2022 it was 104.7%, while for 2021 it was 104.8%.
For 2023, the overall Adjusted ERR, calculated as the average of the ERRs of each category weighted by the weight of each category inthe total population, was 94.8%.
(15) For 2023, the overall ERR calculation on the theoretical total remuneration data was 110.1%, for 2022 it was 105.4%, while for 2021 it
was 105.1%. For 2023, the overall Adjusted ERR, calculated as the average of the ERRs of each category weighted by the weight of eachcategory in the total population is 94.9%.
(16) The figure for 2022 and 2021 takes into account a more precise determination by including Italy-based Executives in the calculation.

398

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Sustainable supply chain
GRI/
EUSS

UM

December
2023

December
2022

Suppliers with an active contract(no.)

14,001

20,43422,452

Number of suppliers with which a new contract
was signed in the year

(no.)

5,134

6,213

308-1 - of which underwent environmental assessment

(%)

100

100

KPI

December
2021 2023-2022

%

Scope

-6,433

-31.5

Enel

6,066

-1,079

-17.4

Enel

100

-

-

Enel

NATURE OF SUPPLIERS

414-1 - of which underwent a social assessment

2-8
EU17

(%)

100

100

100

-

-

Enel

Number of new contracts signed during the year(no.)

12,191

13,671

12,272-1,480

-10.8

Enel

Workforce of contracting and subcontracting
companies(1)(no.)

150,820

172,854

170,397-22,034

-12.7

Enel

FTE days worked by employees of contracting andsubcontracting firms(2)(,000 d)33,16938,02837,492-4,859

-12.8

Enel

Construction activity(,000 d)10,281

11,39014,499-1,109-9.7

Enel

Operating and maintenance activity(,000 d)22,88826,63822,993-3,750

-14.1

Enel

- of which operating activity(,000 d)

6,866

7,991

6,898

-1,125

-14.1

Enel

- of which maintenance activity(,000 d)16,022

18,647

16,095-2,625

-14.1

Enel

Local suppliers with contracts >1 mil euros

(no.)

1,827

1,684

1,566

143

8.5

Enel

Foreign suppliers with contracts >1 mil euros

204-1 Local suppliers of materials and services

(3)

(no.)

220

225

165

-5

-2.2

Enel

Spending on local suppliers with contracts > 1 mil
euros(mil euros)

14,182

17,411

14,484-3,229

-18.5

Enel

Expenditure vs. foreign suppliers with contracts of> 1 mil euro

(mil euros)

2,497

2,837

2,831

-340

-12.0

Enel

Concentration of spending on local suppliers

(%)

86

86

86

-

-

Enel

Concentration of spending on foreign suppliers

(%)

14

14

14

-

-

Enel

Purchases of materials and services(mil euros)

17,79622,09917,030-4,303

-19.5

Enel

Supplies(mil euros)

4,960

7,820

6,510

-2,860 -36.6

Enel

Works

(mil euros)

6,447

4,492

3,776

1,955

43.5

Enel

Services(mil euros)

6,388

9,788

6,744

-3,400

-34.7

Enel

Active qualified companies

(no.)

8,277

9,427

6,717

-1,150

-12.2

Enel

Online tenders as percentage of all tenders

(%)

94.7

95.4

83.5

-0.7

-

Enel

Online purchases as percentage of all purchases

(%)

94.3

91.8

70.3

2.5

-

Enel

Use of prescription

(%)

9.4

32.4

16.0

-23.0

-

Enel

Total proceedings(4)

(no.)

436

512

785

-76

-14.8

Enel

Incidence of proceedings as defendant

(%)

56.0

63.9

68.7

-7.9

-

Enel

Management instruments

Disputes involving suppliers

(1)
(2)
(3)
(4)

Calculated in FTE (Full Time Equivalent).
The figures for 2022 and 2021 include a more specific determination.
“Local suppliers” are defined as suppliers with their registered office in the country where the supply contract was issued.
The 2022 values include a more specific determination.

Performance indicators 399

Engaging communities
GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021 2023-2022

%

Scope

203-1 INITIATIVES IN FAVOR OF THE COMMUNITY
Contributions to communities - LBG method
Charitable donations(mil euros)

16.5

14.5

9.8

2.1

14.2

Enel

Investments in communities(mil euros)

74.8

77.2

56.2

-2.4

-3.2

Enel

Commercial initiatives with a social impact(mil euros)

26.4

28.3

25.2

-1.9

-6.7

Enel

Total (expense + investments)(mil euros)

117.7

120.0

91.1

-2.3

-1.9

Enel

Cash contribution(mil euros)

98.4

103.4

81.7

-5.0

-4.8

Enel

Employee volunteerism(mil euros)

0.7

0.8

0.4

-

-

Enel

Donations in kind (goods/services/projects)(mil euros)

8.0

7.5

2.5

0.6

7.7

Enel

Management overheads(mil euros)

10.5

8.3

6.6

2.2

26.1

Enel

Total

(mil euros)

117.7

120.0

91.1

-2.3

-1.9

Enel

Severe and fatal third-party injuries

(no.)

261

239

286

22

9.2

Enel

- fatal

(no.)

95

86

86

9

10.5

Enel

- serious

(no.)

166

153

200

13

8.5

Enel

Electricity injuries

(%)

95.0

96.7

92.3

-1.7

-

Enel

Road accidents against Group infrastructure

(%)

3.4

1.3

4.5

2.1

-

Enel

Accidents for other reasons (slipping, falling fromheight, crash-crush-cut)

(%)

1.5

2.1

3.1

-0.6

-

Enel

Construction activities near power lines

(%)

65.1

60.7

65.7

4.4

-

Enel

Attempted theft

(%)

18.0

23.8

11.9

-5.8

-

Enel

Other

(%)

11.9

12.1

14.7

-0.2

-

Enel

Initiatives in favor of communities by type ofcontribution

EU25

SAFETY FOR COMMUNITIESThird-party injuries(1)Third-party injuries by type

Causes of electrical accidents(2)(1) The 2022 and 2021 values were recalculated following a reclassification of events.
(2) Mainly due to accidental contact with metal wires, agricultural work and plant cutting activities, among other things.

400 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Health and safety of people
GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

SAFETY
Number of hours worked
Total hours worked(no.)

385,898,158

427,847,104 423,361,542-41,948,946

-9.8

Enel

Hours worked Enel(no.)

120,546,008 123,624,403 123,421,139-3,078,395

-2.5

Enel

Hours worked by contractor personnel(no.)

265,352,150 304,222,701 299,940,403-38,870,551

-12.7

Enel

403-9 Number of fatal accidents and frequency rate(1)Total fatalities

(no.)

11

6

9

5

83.3

Enel

Fatal accidents Enel

(no.)

3

1

3

2

-

Enel

Fatal accidents involving contractors

(no.)

8

5

6

3

60.0

Enel

Italy

(no.)

-

-

2

-

-

Italy

Iberia

(no.)

-

-

-

-

-

IberiaLatin America

(no.)

1

-

1

1

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

2

1

-

1

100.0

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Italy

(no.)

2

1

1

1

100.0

Italy

Iberia

(no.)

1

-

1

1

-

IberiaLatin America

(no.)

5

4

4

1

25.0

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Total accident frequency rate

(i)

0.029

0.014

0.021

0.015

100.0

Enel

Accident frequency rate Enel

(i)

0.025

0.008

0.024

0.017

-

Enel

Accident frequency rate of contractor companies

(i)

0.030

0.016

0.020

0.014

87.5

Enel

Italy

(i)

-

-

0.035

-

-

Italy

Iberia

(i)

-

-

-

-

-

IberiaLatin America

(i)

0.030

-

0.028

0.030

-

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.365

0.129

-

0.236

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

Italy

(i)

0.031

0.018

0.019

0.013

72.2

Italy

Iberia

(i)

0.024

-

0.025

0.024

-

IberiaLatin America

(i)

0.034

0.021

0.022

0.013

61.9

Latin
America

North America

(i)

-

-

-

-

-

North
America

Fatal accidents by geographic area
Enel people

Contractor company personnel

Fatality frequency rate

Fatal accident frequency rate by geographic area
Enel people

Contractor company personnel

Performance indicators 401

GRI/
EUSS

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

Europe

(i)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

Total LCA injuries

(no.)

1

2

4

-1

-50.0

Enel

LCAs Enel

(no.)

-

-

1

-

-

Enel

LCAs involving contractors

(no.)

1

2

3

-1

-50.0

Enel

Italy

(no.)

-

-

-

-

-

Italy

Iberia

(no.)

-

-

-

-

-

IberiaLatin America

(no.)

-

-

1

-

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Italy

(no.)

-

-

-

-

-

Italy

Iberia

(no.)

-

-

1

-

-

IberiaLatin America

(no.)

1

2

2

-1

-50.0

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Total accident frequency rate

(i)

0.003

0.005

0.009

-0.002

-40.0

Enel

Accident frequency rate Enel

(i)

-

-

0.008

-

-

Enel

Accident frequency rate of contractor companies

(i)

0.004

0.007

0.010

-0.003

-42.9

Enel

Italy

(i)

-

-

-

-

-

Italy

Iberia

(i)

-

-

-

-

-

IberiaLatin America

(i)

-

-

0.028

-

-

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

Italy

(i)

-

-

-

-

-

Italy

Iberia

(i)

-

-

0.025

-

-

IberiaLatin America

(i)

0.007

0.011

0.011

-0.004

-36.4

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

KPI

Number of Life Changing Accidents (LCA)(2)

LCAs by geographic area
Enel people

Contractors

LCA frequency rate

Frequency rate of LCAs by geographic area
Enel people

Contractor company personnel

402 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

AppendixUM

December
2023

December2022

December
2021

2023-2022

%

Scope

Total HiPo accidents

(no.)

27

31

40

-4

-12.9

Enel

HiPo accidents Enel

(no.)

6

7

8

-1

-14.3

Enel

HiPos involving contractors

(no.)

21

24

32

-3

-12.5

Enel

Italy

(no.)

1

7

5

-6

-85.7

Italy

Iberia

(no.)

-

-

1

-

-

IberiaLatin America

(no.)

4

-

1

4

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

1

-

1

1

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

KPI
Number of high potential (HiPo) accidents(3)

Number of High Potential accidents (HiPo) bygeographic area
Enel people

Contractors
Italy

(no.)

7

9

2

-2

-22.2

Italy

Iberia

(no.)

4

5

9

-1

-20.0

IberiaLatin America

(no.)

9

10

19

-1

-10.0

Latin
America

North America

(no.)

-

-

1

-

-

North
America

Europe

(no.)

1

-

-

1

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

1

-

-

Africa,Asia and
Oceania

HiPo frequency rate
Total accident frequency rate

(i)

0.070

0.072

0.094

-0.002-2.8

Enel

Accident frequency rate Enel

(i)

0.050

0.057

0.065

-0.007

-12.3

Enel

Accident frequency rate of contractor
companies

(i)

0.079

0.079

0.107

-

-

Enel

Italy

(i)

0.017

0.120

0.089

-0.103

-85.8

Italy

Iberia

(i)

-

-

0.061

-

-

IberiaLatin America

(i)

0.121

-

0.028

0.121

-

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.182

-

0.106

0.182

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

HiPo fatal injury frequency rate by geographic area
Enel people

Contractor company personnel
Italy

(i)

0.108

0.160

0.038

-0.052

-32.5

Italy

Iberia

(i)

0.097

0.116

0.227

-0.019-16.4

IberiaLatin America

(i)

0.061

0.054

0.105

0.007

13.0

Latin
America

North America

(i)

-

-

0.158

-

-

North
America

Europe

(i)

0.225

-

-

0.225

-

EuropeAfrica, Asia and Oceania

(i)

-

-

0.104

-

-

Africa,Asia and
Oceania

Number of accidents with absence from work
for more than 3 days

Performance indicators 403

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

Number of accidents with absence from workof more than 3 days in total

(no.)

194

152

180

42

27.6

Enel

Number of accidents with absence from workof more than 3 days Enel

(no.)

71

59

61

12

20.3

Enel

Number of accidents with absence from workof more than 3 days contractor personnel

(no.)

123

93

119

30

32.3

Enel

Italy

(no.)

46

37

41

9

24.3

Italy

Iberia

(no.)

4

2

2

2

100.0

IberiaLatin America

(no.)

17

18

18

-1

-5.6

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

4

2

-

2

100.0

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Italy

(no.)

67

39

37

28

71.8

Italy

Iberia

(no.)

18

17

28

1

5.9

IberiaLatin America

(no.)

35

35

49

-

-

Latin
America

North America

(no.)

1

1

3

-

-

North
America

Europe

(no.)

2

-

1

2

-

EuropeAfrica, Asia and Oceania

(no.)

-

1

1

-1 -100.0

Africa,Asia and
Oceania

Total accident frequency rate

(i)

0.50

0.36

0.43

0.15

40.8

Enel

Accident frequency rate Enel

(i)

0.59

0.48

0.49

0.11

22.9

Enel

Accident frequency rate of contractor
companies

(i)

0.46

0.31

0.40

0.15

48.4

Enel

Italy

(i)

0.77

0.63

0.73

0.14

22.2

Italy

Iberia

(i)

0.24

0.12

0.12

0.12

100.0

IberiaLatin America

(i)

0.52

0.51

0.50

0.01

2.0

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.73

0.26

-

0.47

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

Number of accidents with absence from workof more than 3 days by geographic area
Enel people

Contractor company personnel

Lost Time Injury Frequency Rate with absencefrom work of more than 3 days

Lost time injury frequency rate with absence fromwork of more than 3 days by geographic area
Enel people

Contractor company personnel
Italy

(i)

1.03

0.69

0.71

0.34

49.3

Italy

Iberia

(i)

0.43

0.39

0.71

0.04

10.3

IberiaLatin America

(i)

0.24

0.19

0.27

0.05

26.3

Latin
America

North America

(i)

0.23

0.16

0.47

0.07

43.8

North
America

Europe

(i)

0.45

-

0.09

0.45

-

EuropeAfrica, Asia and Oceania

(i)

-

0.15

0.10

-0.15 -100.0

Africa,Asia and
Oceania

404 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

UM

December
2023

December2022

December
2021

Total LTIs

(no.)

236

215

275

LTIs Enel

(no.)

87

69

84

LTIs contractors

(no.)

149

146

191

Italy

(no.)

53

40

Iberia

(no.)

5

2

Latin America

(no.)

25

North America(no.)

EuropeAfrica, Asia and Oceania

KPI

Performance 2023

2023-2022

5

Appendix

%

Scope

21

9.8

Enel

18

26.1

Enel

3

2.1

Enel

53

13

32.5

Italy

2

3

-

Iberia

25

28

-

-

Latin
America

-

-

-

-

-

North
America

(no.)

4

2

1

2

100.0

Europe

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Number of lost time injuries (LTI)(4)

LTIs by geographic area
Enel people

Contractor company personnel
Italy

(no.)

70

47

38

23

48.9

Italy

Iberia

(no.)

20

18

29

2

11.1

IberiaLatin America

(no.)

56

76

118

-20

-26.3

Latin
America

North America

(no.)

1

4

3

-3

-75.0

North
America

Europe

(no.)

2

-

2

2

-

EuropeAfrica, Asia and Oceania

(no.)

-

1

1

-1 -100.0

Africa,Asia and
Oceania

Total accident frequency rate

(i)

0.61

0.50

0.65

0.11

21.3

Enel

Accident frequency rate Enel

(i)

0.72

0.56

0.68

0.16

28.6

Enel

Accident frequency rate of contractor
companies

(i)

0.56

0.48

0.64

0.08

16.7

Enel

LTI frequency rate

Percentage of Managers by geographic area
Enel people
Italy

(i)

0.88

0.68

0.94

0.20

29.4

Italy

Iberia

(i)

0.30

0.12

0.12

0.18

-

IberiaLatin America

(i)

0.76

0.71

0.77

0.05

7.0

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.73

0.26

0.11

0.47

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

Contractor company personnel
Italy

(i)

1.08

0.83

0.72

0.25

30.1

Italy

Iberia

(i)

0.48

0.42

0.73

0.06

14.3

IberiaLatin America

(i)

0.38

0.41

0.65

-0.03

-7.3

Latin
America

North America

(i)

0.23

0.64

0.47

-0.41

-64.1

North
America

Europe

(i)

0.45

-

0.18

0.45

-

EuropeAfrica, Asia and Oceania

(i)

-

0.15

0.10

-0.15 -100.0

Africa,Asia and
Oceania

Total TRIs

(no.)

726

962

1,212

-236

-24.5

Enel

TRIs Enel

(no.)

176

153

157

23

15.0

Enel

Number of Total Recordable Injuries (TRIs)(5)Performance indicators 405

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021

2023-2022

%

Scope

TRIs involving contractor companies

(no.)

550

809

1,055

-259

-32.0

Enel

Italy

(no.)

59

41

57

18

43.9

Italy

Iberia

(no.)

22

24

26

-2

-8.3

IberiaLatin America

(no.)

52

51

50

1

2.0

Latin
America

North America

(no.)

35

30

20

5

16.7

North
America

Europe

(no.)

8

6

3

2

33.3

EuropeAfrica, Asia and Oceania

(no.)

-

1

1

-1 -100.0

Africa,Asia and
Oceania

TRIs by geographic area
Enel people

Contractor company personnel
Italy

(no.)

74

50

38

24

48.0

Italy

Iberia

(no.)

54

107

109

-53

-49.5

IberiaLatin America

(no.)

353

534

711

-181

-33.9

Latin
America

North America

(no.)

60

105

164

-45

-42.9

North
America

Europe

(no.)

2

2

7

-

-

EuropeAfrica, Asia and Oceania

(no.)

7

11

26

-4

-36.4

Africa,Asia and
Oceania

Rate of TRIs
Total accident frequency rate

(i)

1.88

2.25

2.86

-0.37

-16.4

Enel

Accident frequency rate Enel

(i)

1.46

1.24

1.27

0.22

17.7

Enel

Accident frequency rate of contractor companies

(i)

2.07

2.66

3.52

-0.59

-22.2

Enel

Italy

(i)

0.98

0.70

1.01

0.28

40.0

Italy

Iberia

(i)

1.32

1.46

1.58

-0.14

-9.6

IberiaLatin America

(i)

1.58

1.44

1.38

0.14

9.7

Latin
America

North America

(i)

9.00

7.78

5.85

1.22

15.7

North
America

Europe

(i)

1.46

0.77

0.32

0.69

89.6

EuropeAfrica, Asia and Oceania

(i)

-

0.64

0.67

-0.64 -100.0

Africa,Asia and
Oceania

TRI frequency rate by geographic area
Enel people

Contractor company personnel
Italy

(i)

1.14

0.89

0.72

0.25

28.1

Italy

Iberia

(i)

1.30

2.48

2.75

-1.18

-47.6

IberiaLatin America

(i)

2.40

2.86

3.93

-0.46

-16.1

Latin
America

North America

(i)

14.03

16.77

25.95

-2.74

-16.3

North
America

Europe

(i)

0.45

0.38

0.64

0.07

18.4

EuropeAfrica, Asia and Oceania

(i)

2.17

1.63

2.71

0.54

33.1

Africa,Asia and
Oceania(1) All frequency rates (FR) are calculated by providing a ratio of the number of events per million hours worked.
(2) Life Changing Accidents (LCAs) are injuries that caused consequences to health that permanently changed a person’s life (for example, amputation of limbs,
paralysis, neurological damage, etc.).
(3) High Potential Accidents (HiPo) are injuries that, given their dynamics, have the potential to cause a life-changing or fatal event.
(4) Lost Time Injury (LTI) includes accidents that have resulted in at least one day of absence from work excluding the day the event occurred.
(5) Total Recordable Injuries include fatalities, LCAs, LTIs and all other injuries that have required medical treatment.

406 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Sound governance
GRI/
EUSS

KPI

2-1

SHAREHOLDERS

UM

December
2023

December2022

December
2021 2023-2022

%

Scope

Composition of shareholdings
Investors(1)Ministry of Economy and Finance

(%)

23.6

23.6

23.6

-

-

Enel SpA

Institutional investors

(%)

58.6

56.3

59.4

2.3

-

Enel SpA

Retail shareholders

(%)

17.8

19.7

17.0

-1.9

-

Enel SpA

Location of institutional investors
Italy

(%)

8.5

7.3

6.7

1.2

-

Enel SpA

UK

(%)

12.7

14.2

12.1

-1.5

-

Enel SpARest of Europe

(%)

27.7

27.3

29.0

0.4

-

Enel SpANorth America

(%)

42.7

43.0

44.8

-0.3

-

Enel SpARest of the world

(%)

8.4

8.2

7.4

0.2

-

Enel SpA

Concentration index (Top 50)

(%)

36.0

37.2

39.7

-1.2

-

Enel SpASocially responsible investors (SRIs)(2)Presence of SRIs

(no.)

224

245

252

-21

-8.6

Enel SpA

Enel shares held by SRI funds

(mil)

1,776

1,510

1,484

266

17.6

Enel SpA

Weight of SRI funds in institutional shareholding(3)

(%)

29.8

26.2

24.6

4

-

Enel SpA

Location of institutional investors
Italy

(%)

18.3

16.4

16.7

1.9

-

Enel SpA

UK

(%)

13.8

11.9

9.7

1.9

-

Enel SpARest of Europe

(%)

39.0

41.3

43.6

-2.3

-

Enel SpANorth America

(%)

26.3

24.4

26.0

1.9

-

Enel SpARest of the world

(%)

2.6

6.0

4.0

-3.4

-

Enel SpA(euro cent)

0.43

0.40

0.38

0.03

7.5

Enel SpA

(no.)

46

51

56

-5

-9.8

Enel SpA(mil euros)

60,16360,663

51,693

-500

-0.8

Enel

(i)

1.3

1.4

1.2

-0.1

-7.0

Enel

Return for the shareholder
DPS - Dividend per Share
Communication to shareholders
Information requests from retail shareholders(5)LENDERS
Debt
Total debt(6)Debt to Equity
405-1 CORPORATE GOVERNANCE
Board of Directors
BoD members by type

(no.)

9

9

9

-

-

Enel SpA

Executive members

(no.)

1

1

1

-

-

Enel SpA

Non-executive members

(no.)

8

8

8

-

-

Enel SpA- of whom independent(7)

(no.)

7

8

8

-1.0

-12.5

Enel SpA

Women on BoD of the Group:
Women on BoD of the Enel SpA

(no.)

4

4

4

-

-

Enel SpA

Women on BoD of Group companies

(no.)

107

76

247

31

40.8

Enel

Under 30 years old

(%)

-

-

-

-

-

Enel SpA

30 - 50 years old

(%)

-

11

11

-11

-

Enel SpA

30 - 50 years old

(%)

100

89

89

11

-

Enel SpABoD meetings(8)

(no.)

15

16

16

-1

-6.3

Enel SpA

Reports received by type of stakeholder(9):

(no.)

207

168

153

39

23.2

Enel

Internal stakeholders

(no.)

30

22

27

8

36.4

Enel

External stakeholders

(no.)

33

18

24

15

83.3

Enel

Anonymous

(no.)

144

128

102

16

12.5

Enel

Reports received for harmed or potentially harmed
stakeholder(9):

(no.)

207

168

153

39

23.2

Enel

Shareholder

(no.)

66

48

67

18

37.5

Enel

Members of the BoD by age group

2-26

Implementation of the Code of Ethics

Performance indicators

407

GRI/
EUSS

KPI

UM

December
2023

December2022

December
2021 2023-2022

%

Scope

Customer

(no.)

12

12

7

-

-

Enel

Employee

(no.)

78

72

51

6

8.3

Enel

Communities

(no.)

4

4

5

-

-

Enel

Suppliers

(no.)

47

32

23

15

46.9

Enel

Reports received by status(9):

(no.)

207

168

153

39

23.2

Enel

Reports being assessed

(no.)

25

-

-

25

-

Enel

Reports for which a violation has not been confirmed

(no.)

141

134

109

7

5.2

Enel

Reports for which a violation has been confirmed

(no.)

41

34

44

7

20.6

Enel

Reports related to(9):

(no.)

207

168

153

39

23,2

Enel

Conflict of interest/corruption

(no.)

35

31

32

4

12.9

Enel

Misappropriation

(no.)

27

21

31

6

28.6

Enel

Work practices

(no.)

119

92

71

27

29.3

Enel

Community and society

(no.)

1

1

3

-

-

Enel

Other reasons

(no.)

25

23

16

2

8.7

Enel

Violations confirmed by type of harmed stakeholder(9):

(no.)

41

34

44

7

20.6

Enel

Shareholder

(no.)

16

15

19

1

6.7

Enel

Customer

(no.)

5

1

-

4

-

Enel

Employee

(no.)

11

14

14

-3

-21.4

Enel

Communities

(no.)

1

-

1

1

-

Enel

Fornitori

(no.)

8

4

10

4

100.0

Enel

406-1 Violations regarding incidents of(9):

(no.)

41

34

44

7

20.6

Enel

2-26

Conflict of interest/corruption(10)

(no.)

7

10

8

-3

-30.0

Enel

Misappropriation

(no.)

9

5

5

4

80.0

Enel

Work practices

(no.)

18

14

27

4

28.6

Enel

Community and society

(no.)

-

-

1

-

-

Enel

Other reasons

(no.)

7

5

3

2

40.0

Enel

Violations established for conflict of interest/corruption
by country(9):

(no.)

7

10

8

-3

-30.0

Enel

Argentina

(no.)

-

-

-

-

-

Argentina

Brazil

(no.)

2

3

-

-1

-33.3

Brazil

Chile

(no.)

3

2

-

1

50.0

Chile

Colombia

(no.)

1

1

4

-

-

Colombia

Italy

(no.)

-

1

1

-1 -100.0

Italy

Peru

(no.)

1

-

-

1

-

Peru

Romania

(no.)

-

-

-

-

-

Romania

Russia

(no.)

-

-

2

-

-

Russia

Spain

(no.)

-

-

1

-

-

Spain

India

(no.)

-

1

-

-1 -100.0

India

United States

(no.)

-

1

-

-1 -100.0

UnitedStatesPanama

(no.)

-

1

-

-1 -100.0

PanamaActions taken in response to incidents of conflict ofinterest/corruption(10)

(no.)

9

10

10

-1

-10.0

Enel

of which: actions taken against employees in response tocases of conflict of interest/corruption

(no.)

5

7

7

-2

-28.6

Enel

of which: actions taken against contractors in response
to cases of conflict of interest/corruption.

(no.)

4

3

3

1

33.3

Enel

412-3

Significant investment agreements that include humanrights clauses

(no.)

7

4

-

3

75.0

Enel

412-3

Percentage of significant investment agreements that
include human rights clauses

(%)

88

100

-

-13

-

Enel

Grants supplied in the period by geographic area(11)(mil euros)

406.9

7.4

43.6

399.5

-

Enel

Italy

(mil euros)

401.1

5.0

37.1

396.1

-

Italy

Romania(mil euros)

-

-

-

-

-

RomaniaSpain(mil euros)

3.8

2.1

1.7

1.7

83.3

Spain

Brazil(mil euros)

-

-

4.1

-

-

BrazilINSTITUTIONAL RELATIONS
201-4 Grants

408 Sustainability Report 2023

1

Letter to stakeholders

GRI/
EUSS

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

UM

December
2023

December
2022

Colombia(mil euros)

1.8

0.3

-

Chile

(mil euros)

-

-

0.5

KPI

Performance 2023

December
2021 2023-2022

5

Appendix

%

Scope

1.5

-

Colombia

-

-

Chile

(mil euros)

0.2

0.1

0.1

0.1

99.5

North
America

Energy grids

(%)

89.7

60.3

55.6

29.4

-

Enel

R&D

(%)

1.8

38.7

17.2

-36.9

-

Enel

Renewables

(%)

8.4

-

20.9

8.4

-

Enel

Training

(%)

-

-

5.8

-

-

Enel

Other

(%)

0.1

1.0

0.5

-0.9

-

Enel

Number of projects which received grants(11)

(no.)

94

38

101

56

-

Enel

Outstanding debt from EIB financing and others bygeographic area

(mil euros)

9,532

8,219

6,692

1,313

16.0

Enel

- Italy(mil euros)

4,173

3,912

3,761

261

6.7

Italy

- Iberia(mil euros)

2,691

2,556

1,889

135

5.3

Iberia- Latin America(mil euros)

1,809

1,209

823

600

49.6

Latin
America- Europe(mil euros)

-

-

100

-

-

Europe- Africa, Asia and Oceania(mil euros)

-

-

-

-

-

Africa,Asia and
Oceania- North America(mil euros)

860

542

190

318

58.7

North
America

Energy grids

(%)

49.7

52.0

60.4

-2.3

-

Enel

R&D

(%)

-

-

0.1

-

-

Enel

Renewables

(%)

39.3

41.0

37.0

-1.7

-

Enel

Training

(%)

-

-

-

-

-

Enel

Other

(%)

11.0

7.0

2.5

4.0

-

Enel

Number of projects in progress approved with loans
from EIB and others

(no.)

176

212

147

-36

-17.0

Enel

Lobbying, interest representation or similar(euros)

-

-

-

-

-

Enel

Contributions in favor local, regional or national political
campaigns/organizations/candidates(euros)

-

-

-

-

-

Enel

Contributions in favor of trade and employer
associations(euros)11,039,368

9,595,575

8,424,797

1,443,793

15.0

Enel

Other (e.g., spending related to ballot measures orreferendums)(euros)

-

-

-

-

Enel

Total contributions and other spending(euros) 11,039,360

9,595,575

8,424,797

15.0

Enel

North America
Grants supplied in the period by destination(11)Loans granted by the EIB and others

Remaining debt on loans from EIB and others bydestination

Policy influence

1,443,785(1)

The institutional investor is an entity that, under a specific mandate or on their own account, undertakes equity and/or property investment on a continuousand professional basis. The category includes: mutual funds, pension funds, hedge funds, investment and merchant banks, insurance companies.
(2) SRIs are investors who state that they include environmental, social and governance (ESG) factors in their traditional financial analyses in order to guide theirinvestment decisions (inclusion of at least one ESG criterion and adhesion to the main international principles approved by organizations such as UNPRI,UKSIF, EUROSIF are among the key factors in order to classify an investor as an SRI).
(3) Calculated comparing the number of shares held by identified Socially Responsible Investors (SRIs) with the number of shares held by identified institutional
investors.
(4) Calculated as the difference between the valuation on the last open market day of the year and the valuation of the previous year.
(5) Only requests received have been considered, not the responses provided.
(6) For the purpose of better exposure of net financial debt, in its determination the Group decided to exclude the fair value of cash flow hedge and fair value
hedge derivatives used to hedge currency risk on loans. Consequently, in order to make the data more comparable, it was necessary to restate the net
financial debt at December 31, 2022.
(7) The number shown for 2023 and 2022 refers to directors qualified as independent pursuant to the Single Financial Act and the Italian Corporate Governance Code (Edition 2020).
(8) Of these, 7 meetings were held in 2022 on sustainability issues.
(9) The 2022 figure takes into account a timelier determination following the conclusion of the analysis of reports that were still under assessment at December 31, 2022.
(10) Corruption consists of the abuse of power with the goal of private gain and can be instigated by individuals in the public or private sector. It is interpreted
here as including corrupt practices such as bribery, fraud, extortion, collusion, conflicts of interest and money laundering.
(11) The 2022 and 2021 figures include a more specific determination thereof.

Performance indicators 409

GRI AND ESRSINTEROPERABILITYCONTENT INDEXStatement of use

Enel SpA has reported in accordance with the GRI Standards for the period January
1, 2023–December 31, 2023

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)Electric Utilities Disclosure 2013

The last column includes reference to the sustainability reporting standards prepared by EFRAG in line with the CSRD (Corporate Sustainability Reporting Directive), using the GRI-ESRS(European Sustainability Reporting Standards) Interoperability
Index, draft version, published in November 2023 jointly by GRI
and EFRAG and in the process of being finalized in 2024.
OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)The organization and its reporting practices
2-1

Organizational details

Pg. 14-17; 260; 364;
Performance indicators sec.
Sound governance-

2-2

Entities included in
the organization’ssustainability reportingPg. 364ESRS 1 5.1; ESRS 2 BP-1
§5 (a) and (b) i

2-3Reporting period,
frequency and contact
point

Pg. 364; 370

ESRS 1 §73

2-4

Restatements of
information

Pg. 364; 370

ESRS 2 BP-2 §13, §14 (a)to (b)

2-5

External assurance

Pg. 466-471-

Activities and workers

GRI 2: General
Disclosures 2021

2-6

Activities, value chain
and other business
relationships

Pg. 14; 209-210;
218-219; 370

ESRS 2 SBM-1 §40 (a) i to(a) ii, (b) to (c), §42 (c)2-7Employees

Pg. 189-190; Performanceindicators sec. Enel people

ESRS 2 SBM-1 §40 (a) iii;
ESRS S1 S1-6 §50 (a) to (b)and (d) to (e), §51 to §52

2-8Workers who are not
employees

Performance indicators sec.
Enel people

ESRS S1 S1-7 §55
to §56(3)Governance

410

2-9

Pg. 100-103; 135; 261-264;
Governance structure andPerformance indicators sec.
composition
Sound governance

ESRS 2 GOV-1 §21, §22 (a),§23; ESRS G1 §5 (b)2-10Nomination and selectionof the highest governance Pg. 262-263
body

NOT COVERED

2-11

Chair of the highest
governance bodyPg. 262-263

NOT COVERED

2-12

Role of the highest
governance bodyin overseeing themanagement of impacts

Pg. 100-103; 135; 261-264

ESRS 2 GOV-1 §22 (c);GOV-2 §26 (a) to (b); SBM2 §45 (d); ESRS G1 §5 (a)2-13Delegation of
responsibility for
managing impacts

Pg. 100-103; 262-264

ESRS 2 GOV-1 §22 (c) i;
GOV-2 §26 (a); ESRS G1
G1-3 §18 (c)2-14Role of the highest
governance body insustainability reportingPg. 262-264

ESRS 2 GOV-5 §36; IRO-1§53 (d)Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)2-15

Conflicts of interest

Pg. 266-267; 278-279

NOT COVERED

2-16

Communication of criticalconcerns

Pg. 262-264; 278-279

ESRS 2 GOV-2 §26 (a);ESRS G1 G1-1 AR 1 (a);G1-3 §18 (c)2-17Collective knowledge ofthe highest governancebody

Pg. 260; 262-264

ESRS 2 GOV-1 §23

2-18

Evaluation of theperformance of thehighest governance bodyPg. 262-265

NOT COVERED

2-19

Remuneration policies

Pg. 100-103; 264-265

ESRS 2 GOV-3 §29 (a) to(c); ESRS E1 §13

2-20

Process to determine
remuneration

Pg. 100-103; 264-265

ESRS 2 GOV-3 §29 (e)2-21Annual totalcompensation ratio

Pg. 100-103; 264-265

ESRS S1 S1-16 §97 (b)to (c)

Pg. 6-7

ESRS 2 SBM-1 §40 (g)Pg. 237-238; 266-267; 278280; 286

ESRS 2 GOV-4; MDR-P§65 (b) to (c) and (f); ESRSS1 S1-1 §19 to §21, and§AR 14; ESRS S2 S2-1 §16
to §17, §19, and §AR 16;
ESRS S3 S3-1 §14, §16 to§17 and §AR 11; ESRS S4
S4-1 §15 to §17, and §AR13; ESRS G1 G1-1 §7 and§AR 1 (b)Pg. 18-19; 100-103; 286-287

ESRS 2 GOV-2 §26 (b);MDR-P §65 (c); ESRS S1
S1-4 §AR 35; ESRS S2
S2-4 §AR 30; ESRS S3
S3-4 §AR 27; ESRS S4
S4-4 §AR 27; ESRS G1
G1-1 §9 and §10 (g)Strategy, policies and practices
2-22

2-23

2-24

Statement on sustainable
development strategy

Policy commitments

Embedding policy
commitments

2-25

Processes to remediate
negative impacts

Pg. 238-239; 301-309

ESRS S1 S1-1 §20 (c); S1-3
§32 (a), (b) and (e), §AR 31;
ESRS S2 S2-1 §17 (c); S2-3
§27 (a), (b) and (e), §AR
26; S2-4 §33 (c); ESRS S3
S3-1 §16 (c); S3-3 §27 (a),(b) and (e), §AR 23; S3-4
§33 (c); ESRS S4 S4-1 §16(c); S4-3 §25 (a), (b) and (e),§AR 23; S4-4 §32 (c)2-26

Mechanisms for seeking
advice and raisingconcerns

Pg. 238-239; 278-279; 301;
Performance indicators sec.
Sound governance

ESRS S1 S1-3 §AR 32 (d);ESRS S2 S2-3 §AR 27 (d);ESRS S3 S3-3 §AR 24 (d);ESRS S4 S4-3 §AR 24(d); ESRS G1 G1-1 §10 (a);G1-3 §18 (a)2-27Compliance with laws andregulations

Pg. 174; Performanceindicators sec. Zeroemissions ambition andjust transition, Roadmap
towards natural capitalconservation

ESRS 2 SMB-3 §48 (d);ESRS E2 E2-4 §AR 25 (b);ESRS S1 S1-17 §103 (c) to(d) and §104 (b); ESRS G1
G1-4 §24 (a)
(1a)

2-28

Membership associations

Pg. 11-13; 96-98; 103-110-

ESRS 2 SMB-2 §45 (a) i to(a) iv; ESRS S1 S1-1 §20 (b);S1-2 §25, §27 (e) and §28;
ESRS S2 S2-1 §17 (b); S2-2
§20, §22 (e) and §23; ESRSS3 S3-1 §16 (b); S3-2 §19,
§21 (d) and §22; ESRS S4
S4-1 §16 (b); S4-2 §18,
§20 (d) and §21
ESRS S1 S1-8 §60 (a)and §61

(2b)Stakeholder engagement

2-29

Approach to stakeholder
engagement

Pg. 26-27; 34-42; 194;221-223; 235-236; 238-239;
260-261; 289; 297-299;
Performance indicators sec.
Business drivers, Customer
centricity

2-30

Collective bargaining
agreements

Pg. 206-207; Performanceindicators sec. Enel people

Content Index

411

Omissions
GRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Material Topics
3-1

Process to determinematerial topics

Pg. 26-27; 34-65; 364-368

ESRS 2 BP-1 §AR 1 (a); IRO1 §53 (b) ii to (b) iv

3-2

List of material topics

Pg. 26-27; 34-65; 364-368

ESRS 2 SBM-3 §48 (a)and (g)Management of material
topics

Pg. 26-27; 34-65; 364-368

ESRS 2 SBM-1§ 40 (e);SBM-3 §48 (c) i and (c) iv;
MDR-P, MDR-A, MDR-M,
and MDR-T; ESRS S1 S1-2
§27; S1-4 §39 and AR
40 (a); S1-5 §47 (b) to (c);ESRS S2 S2-2 §22; S2-4
§33, §AR 33 and §AR
36 (a); S2-5 §42 (b) to (c);ESRS S3 S3-2 §21; S3-4
§33, §AR 31, §AR 34 (a);S3-5 §42 (b) to (c); ESRSS4 S4-2 §20, S4-4 §31,
§AR 30, and §AR 33 (a);S4-5 §41 (b) to (c)3-3Management of material
topics

Pg. 17; 94-95; 104; 107-110;
113-115; 205; 266-267

NA

201-1

Pg. 17; Performance
Direct economic value
indicators sec. Enel’s
generated and distributed commitment to sustainable
development

NOT COVERED

201-2

Financial implications
and other risks andopportunities due toclimate change

Pg. 94-95; 104; 107-110; 113115; 266-267

ESRS 2 SBM-3 §48 (a),and (d) to (e); ESRS E1 §18;
E1-3 §26; E1-9 §64

201-3

Defined benefit plan
obligations and otherretirement plans

Pg. 205; Performanceindicators sec. Enel people

NOT COVERED

201-4

Financial assistance
Performance indicators sec.
received from government Sound governance

NOT COVEREDManagement of material
topics

Pg. 223NA

Investments ininfrastructure andsupported services

Pg. 223; Performanceindicators sec. Engaging
communities

Communities’ economic,
social and cultural rights
is a sustainability matterfor S3 covered by ESRS
1 §AR 16. Hence this GRI
disclosure is covered by
MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)Management of material
topics

Pg. 209-211

ESRS G1 G1-2 §12

GRI 3: Material
Topics 2021
3-3

Material Topics
200 series (Economic Topics)
Economic Performance
GRI 3: Material
Topics 2021

GRI 201:
Economic
Performance
2016

Indirect Economic Impacts
GRI 3: Material
Topics 2021

3-3

GRI 203:
Indirect Economic 203-1
Impacts 2016

Procurement Practices
GRI 3: Material
Topics 2021

GRI 204:
Procurement
Practices 2016

412

3-3

204-1

Sustainability Report 2023

Proportion of spending on Performance indicators sec.
local suppliers
Sustainable supply chain

Communities’ economic,
social and cultural rights
is a sustainability matterfor S3 covered by ESRS
1 §AR 16. Hence this GRI
disclosure is covered by
MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Anti-corruption
GRI 3: Material
Topics 2021

GRI 205:
Anticorruption
2016

3-3

Management of material
topics

Pg. 278-281

ESRS G1 G1-1 §7; G1-3
§16 and §18 (a) and §24 (b)205-1Operations assessed forrisks related to corruption

Pg. 278-281

ESRS G1 G1-3 §AR 5 (1b)205-2Communicationand training about
anticorruption policies
and procedures

Pg. 278-281; Performanceindicators sec. Enel people

ESRS G1 G1-3 §20, §21 (b)and (c) and §AR 7 and 8(1b)205-3

Confirmed incidents ofcorruption and actions
taken

Pg. 278-281

ESRS G1 G1-4 §25

Anti-competitive Behavior
GRI 3: Material
Topics 2021

3-3Management of material
topics

Pg. 278-281

NA

GRI 206:
Anticompetitive
Behavior 2016

206-1

Legal actions for anticompetitive behavior,anti-trust, and monopoly
practices

During 2023, 9 legal actions(4 in Italy, 3 in Iberia and 2 inChile) were filed.

NOT COVEREDGRI 3: Material
Topics 2021

3-3Management of material
topicsPg. 310-337

NA

207-1

Approach to tax

Pg. 310-337

NOT COVERED207-2

Tax governance, control,
and risk management due
to climate change

Pg. 310-337

NOT COVERED

207-3

Stakeholder engagement
and management ofconcerns related to tax

Pg. 310-337

NOT COVERED

207-4

Country-by-country
reportingPg. 310-337

NOT COVERED

3-3

Management of material
topics

Pg. 177; 218

ESRS E5 E5-1 §12; E5-2
§17; E5-3 §21

301-1

Materials used by weightor volumePg. 218; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E5 E5-4 §31 (a) (1a)301-2Recycled input materials
used

Pg. 177; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E5 E5-4 §31 (c)3-3Management of material
topics

Pg. 172-174

ESRS E1 E1-2 §25 (c) to (d);E1-3 §26; E1-4 §33

302-1

Energy consumption
within the organization

Pg. 172-174; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E1 E1-5 §37; §38;
§AR 32 (a), (c), (e) and (f)(2b)302-3Energy intensity

Pg. 172-174

ESRS E1 E1-5 §40 to §42

Pg. 172-174

Energy is a sustainability
matter for E1 covered by
ESRS 1 §AR 16. Hence thisGRI disclosure is covered
by MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2a)GRI 207: Tax 2019

300 series (Environmental Topics)
Materials
GRI 3: Material
Topics 2021

GRI 301:
Materials 2016

EnergyGRI 3: Material
Topics 2021

GRI 302: Energy
2016
302-4

Reduction of energy
consumption

Content Index

413

Omissions
GRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)

Water

GRI 3: Material
Topics 2021

3-3Management of material
topics

Pg. 14-17; 160-163

ESRS E2 §AR 9 (b); E2-1
§12; E2-2 §16 and §19;
E2-3 §20; ESRS E3 E3-1
§9; E3-2 §15, §17 to §18;
E3-3 §20

303-1

Interactions with water asa shared resource

Pg. 160-163

ESRS 2 SBM-3 §48 (a);MDR-T §80 (f); ESRS E3 §8(a); §AR 15 (a); E3-2 §15,
§AR 20303-2

Pg. 160-163; Performanceindicators sec. ZeroManagement of water
emissions ambition and justdischarge-related impacts
transition, Roadmap towards
natural capital conservation

ESRS E2 E2-3 §24(2b)Pg. 14-17; 160-163;
Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

Water withdrawals is asustainability matter for E3
covered by ESRS 1 §AR 16.
Hence this GRI disclosure
is covered by MDR-P,
MDR-A, MDR-T, and/or as
an entity-specific metric
to be disclosed according
to ESRS 1 §11 andpursuant to MDR-M (2b)Water discharge

Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

Water discharges is asustainability matter for E3
covered by ESRS 1 §AR 16.
Hence this GRI disclosure
is covered by MDR-P,
MDR-A, MDR-T, and/or as
an entity-specific metric
to be disclosed according
to ESRS 1 §11 andpursuant to MDR-M (2b)303-5

Water consumption

Pg. 14-17; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E3 E3-4 §28 (a), (b),(d) and (e)3-3Management of material
topics

Pg. 147-159

ESRS E4 E4-1 §AR 1 (b)and (d); E4-2 §20 and§22; E4-3 §25 and §28 (a);E4-4 §29

304-1

Operational sites owned,
leased, managed in, or
adjacent to, protectedareas and areas of highbiodiversity value outside
protected areas

Pg. 147-159

ESRS E4 §16 (a) i; §19 (a);E4-5 §35
(1a)

304-2

Significant impacts ofactivities, products, andservices on biodiversity

Pg. 147-159

ESRS E4 E4-5 §35, §38,
§39, §40 (a) and (c)304-3Habitats protected or
restoredPg. 147-159

ESRS E4 E4-3 §28 (b) and§AR 20 (e); E4-4 §AR 26 (a)304-4

IUCN Red List species
and national conservation
list species with habitats
in areas affected byoperations

Pg. 147-159

ESRS E4 E4-5 §40 (d) i(1b)303-3

Water withdrawal

GRI 303: Water
and Effluents
2018

303-4

Biodiversity
GRI 3: Material
Topics 2021

GRI 304:
Biodiversity 2016

414

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Emissions

GRI 3: Material
Topics 2021

Management of material
topics

Pg. 14-16; 119-125; 164-165

ESRS E1 E1-2 §22; E1-3
§26; E1-4 §33 and §34 (b);E1-7 §56 (b) and §61 (c);ESRS E2 §AR 9 (b); E2-1
§12; E2-2 §16 and §19;
E2-3 §20
(2a)Direct (Scope 1) GHG
emissionsPg. 119-124; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E1 E1-4 §34 (c); E1-6
§44 (a); §46; §50; §AR 25(b) and (c); §AR 39 (a) to (d);§AR 40; AR §43 (c) to (d)Energy indirect (Scope 2)
GHG emissions

Pg. 119-122; 124;
Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

ESRS E1 E1-4 §34 (c); E1-6
§44 (b); §46; §49; §50;
§AR 25 (b) and (c); §AR 39(a) to (d); §AR 40; §AR 45(a), (c), (d), and (f)Other indirect (Scope 3)
GHG emissions

Pg. 119-122; 125;
Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

ESRS E1 E1-4 §34 (c);E1-6 §44 (c); §51; §AR 25(b) and (c); §AR 39 (a) to (d);§AR 46 (a) (i) to (k)305-4

GHG emissions intensity

Pg. 14-16; 119-125;
Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

ESRS E1 E1-6 §53; §54;
§AR 39 (c); §AR 53 (a) (1a)305-5Reduction of GHG
emissionsPg. 119-122; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E1 E1-3 §29 (b); E1-4
§34 (c); §AR 25 (b) and (c);E1-7 §56

305-6

Emissions of ozonedepleting substances(ODS)

Pg. 119-122; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

Pollution of air is asustainability matter for E2
covered by ESRS 1 §AR 16.
Hence this GRI disclosure
is covered by MDR-P,
MDR-A, MDR-T, and/or as
an entity-specific metric
to be disclosed according
to ESRS 1 §11 andpursuant to MDR-M (2b)305-7

Nitrogen oxides (NOX),
sulfur oxides (SOX), andother significant air
emissionsPg. 164-165; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E2 E2-4 §28 (a); §30(b) and (c); §31; §AR 21;§AR 26

3-3

305-1

305-2

305-3

GRI 305:
Emissions 2016

Content Index

415

Omissions
GRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)

Waste
GRI 3: Material
Topics 2021

GRI 306: Waste
2020

3-3

Management of material
topics

Pg. 168-172

ESRS E5 §AR 7 (a); E5-1
§12; E5-2 §17; E5-3 §21

306-1

Waste generation andsignificant waste-related
impacts

Pg. 168-172

ESRS 2 SBM-3 §48 (a), (c) ii
and iv; ESRS E5 E5-4 §30

306-2Management ofsignificant waste-related
impacts

Pg. 168-172; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E5 E5-2 §17 and §20(e) and (f); E5-5 §40 and§AR 33 (c)306-3Waste generated

Pg. 168-172; Performanceindicators sec. Zeroemissions ambition and justtransition, Roadmap towards
natural capital conservation

ESRS E5 E5-5 §37 (a), §38
to §40
(1b)

306-4

Waste diverted from
disposal

Performance indicators sec.
Zero emissions ambitionand just transition, Roadmap
towards natural capitalconservation

ESRS E5 E5-5 §37 (b), §38
and §40
(1b)

306-5

Performance indicators sec.
Zero emissions ambition
Waste directed to disposal and just transition, Roadmap
towards natural capitalconservation

ESRS E5 E5-5 §37 (c), §38
and §40
(1a) (1b)Supplier Environmental Assessment
GRI 3: Material
Topics 2021

GRI 308: Supplier
Environmental
Assessment 2016

3-3

Management of material
topics

Pg. 209-211; Performanceindicators sec. Sustainablesupply chain

ESRS G1 G1-2 §12 and§15 (a)308-1

New suppliers thatwere screened using
environmental criteria

Pg. 209-211; Performanceindicators sec. Sustainablesupply chain

ESRS G1 G1-2 §15 (b) (1b)308-2

Negative environmental
impacts in the supply
chain and actions taken

Pg. 209-211; Performanceindicators sec. Sustainablesupply chain

ESRS 2 SBM-3 §48 (c) i
and iv

400 series (SocialTopics)
Employment

GRI 3: Material
Topics 2021

GRI 401:
Employment
2016

3-3

Management of material
topics

Pg. 14-16; 189; 201-203

ESRS S1 S1-1 §17; §20 (c);S1-2 §27; S1-4 §38; §39;
§AR 40 (a); S1-5 §44; §47(b) and (c); ESRS S2 §11 (c);S2-1 §14; §17 (c); S2-2 §22;
S2-4 §32; §33 (a) and (b);§36; §AR 33; §AR 36 (a);S2-5 §39, §42 (b) and (c)401-1

New employee hires andemployee turnoverPg. 14-16; 189; Performanceindicators sec. Enel people

ESRS S1 S1-6 §50 (c) (1a)401-2

Benefits provided to fulltime employees that are
Pg. 201-203
not provided to temporary
or part-time employees

401-3

Parental leave

ESRS S1 S1-11 §74; §75;
§AR 75

Performance indicators sec.
Enel people

ESRS S1 S1-15 §93Pg. 206-207

ESRS S1 S1-1 §17; §20 (c);S1-2 §27; S1-4 §38; §39;
§AR 40 (a); S1-5 §44; §47(b) and (c); ESRS S2 §11 (c);S2-1 §14; §17 (c); S2-2 §22;
S2-4 §32; §33 (a) and (b);§36; §AR 33; §AR 36 (a);S2-5 §39, §42 (b) and (c)(1a)Labor/Management Relations

GRI 3: Material
Topics 2021

416

3-3

Sustainability Report 2023

Management of material
topics1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

GRI 402: Labor/
Management
Relations 2016

402-1

Minimum notice periods
regarding operationalchanges

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Pg. 206-207

Social dialogue andCollective bargaining aresustainability matters for
S1 covered by ESRS 1§AR 16. Hence this GRI
disclosure is covered by
MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)Occupational Health and Safety

GRI 3: Material
Topics 2021

GRI 403:
Occupational
Health and Safety
2018

3-3

Management of material
topics

Pg. 244-255

ESRS S1 S1-1 §17; §20 (c);S1-2 §27; S1-4 §38; §39;
§AR 40 (a); S1-5 §44; §47(b) and (c); ESRS S2 §11 (c);S2-1 §14; §17 (c); S2-2 §22;
S2-4 §32; §33 (a) and (b);§36; §AR 33; §AR 36 (a);S2-5 §39, §42 (b) and (c)403-1

Occupational healthand safety management
system

Pg. 244-247

ESRS S1 S1-1 §23403-2

Hazard identification, risk
assessment, and incident
investigation

Pg. 244-247

ESRS S1 S1-3 §32 (b) and
§33

403-3

Occupational healthservicesPg. 252-253

403-4

Worker participation,
consultation, andcommunication on
occupational health andsafetyPg. 249-250

403-5

Worker training on
occupational health andsafetyPg. 249-250

(1a)Health and safety andTraining and skills
development are
sustainability matters for
S1 covered by ESRS 1§AR 16. Hence this GRI
disclosure is covered by
MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)

403-6

Promotion of worker
healthPg. 244-254

Social protection is asustainability matter for S1
covered by ESRS 1 §AR 16.
Hence this GRI disclosure
is covered by MDR-P,
MDR-A, MDR-T, and/or as
an entity-specific metric
to be disclosed according
to ESRS 1 §11 andpursuant to MDR-M (2b)403-7

Prevention and mitigationof occupational healthand safety impacts
directly linked by business
relationships

Pg. 253-255

ESRS S2 S2-4 §32 (a)403-9Work-related injuries

Pg. 244-248

ESRS S1 S1-4, §38 (a);S1-14 §88 (b) and (c);§AR 82(1a) (2c)Pg. 14-16; 189-193

ESRS S1 S1-1 §17; §20 (c);S1-2 §27; S1-4 §38; §39;
§AR 40 (a); S1-5 §44; §47(b) and (c); ESRS S2 §11 (c);S2-1 §14; §17 (c); S2-2 §22;
S2-4 §32; §33 (a) and (b);§36; §AR 33; §AR 36 (a);S2-5 §39, §42 (b) and (c)GRI 403:
Occupational
Health and Safety
2018

Training and Education

GRI 3: Material
Topics 2021

3-3Management of material
topicsContent Index

417

Omissions
GRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

GRI 404: Training
and Education
2016Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)404-1

Average hours of training
per year per employee

Pg. 14-16; 189-193;
Performance indicators sec.
Enel people

ESRS S1 S1-13 §83 (b)and §84404-2

Programs for upgrading
employee skills andtransition assistanceprograms

Pg. 191-193

ESRS S1 S1-1 §AR 17 (h)404-3Percentage of employees
receiving regularperformance and careerdevelopment reviews

Pg. 190-191; Performanceindicators sec. Enel people

ESRS S1 S1-13 §83 (a)and §84

Diversity and Equal Opportunity

GRI 3: Material
Topics 2021

GRI 405: Diversity
and Equal
Opportunity 2016

3-3

Management of material
topics

Pg. 14-16; 189-190; 194-200;
262-263; 278-280

ESRS S1 S1-1 §17; §20 (c);ESRS S1 §24 (a); S1-2 §27;
S1-4 §38; §39; §AR 40 (a);S1-5 §44; §47 (b) and (c);ESRS S2 §11 (c); S2-1 §14;
§17 (c); S2-2 §22; S2-4
§32; §33 (a) and (b); §36;
§AR 33; §AR 36 (a); S2-5
§39, §42 (b) and (c)405-1

Diversity of governancebodies and employees

Pg. 14-16; 189-190; 194200; 262-263; 278-280;
Performance indicators EnelpeopleESRS 2 GOV-1 §21 (d); ESRSS1 S1-6 §50 (a); S1-9 §66(a) to (b); S1-12 §79
(1a)

405-2

Ratio of basic salary andremuneration of women
to menPg. 189-190; 198-200;
Performance indicators sec.
Enel people

ESRS S1 S1-16 §97 and §98

Pg. 278-280

ESRS S1 S1-1 §17; §20 (c);§24 (a) and (d); S1-2 §27;
S1-4 §38; §39; §AR 40 (a);S1-5 §44; §47 (b) and (c);ESRS S2 §11 (c); S2-1 §14;
§17 (c); S2-2 §22; S2-4 §32;
§33 (a) and (b); §36; §AR
33; §AR 36 (a); S2-5 §39,
§42 (b) and (c); ESRS S4 §10(b); S4-1 §13; §16 (c); S4-2
§20; S4-4 §31; §32 (a) and(b); §35; §AR 30; §AR 33 (a);S4-5 §38; §41 (b) and (c)Non-discrimination

GRI 3: Material
Topics 2021

3-3

GRI 406:
Nondiscrimination 406-1
2016

Management of material
topicsIncidents of discrimination Pg. 278-280; Performanceand corrective actions
indicators sec. Soundtaken
governance

ESRS S1 S1-17 §97, §103(a), §AR 103

Freedom of Association and Collective Bargaining

GRI 3: Material
Topics 2021

GRI 407: Freedomof Association
and Collective
Bargaining 2016

418

3-3

407-1

Sustainability Report 2023

Management of material
topicsOperations and suppliers
in which the right tofreedom of associationand collective bargaining
may be at risk

Pg. 209-211; 286

ESRS S1 S1-1 §17; §20 (c);S1-2 §27; S1-4 §38; §39;
§AR 40 (a); S1-5 §44; §47(b) and (c); ESRS S2 §11 (c);S2-1 §14; §17 (c); S2-2 §22;
S2-4 §32; §33 (a) and (b);§36; §AR 33; §AR 36 (a);S2-5 §39, §42 (b) and (c)Pg. 209-211; 286

Freedom of association
and Collective bargaining
are sustainability matters
for S1 and S2 covered by
ESRS 1 §AR 16. Hence thisGRI disclosure is covered
by MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Child LaborGRI 3: Material
Topics 2021

3-3Management of material
topics

Pg. 209-211; 278-280; 286

ESRS S1 S1-1 §17; §20 (c);§22; S1-2 §27; S1-4 §38;
§39; §AR 40 (a); S1-5 §44;
§47 (b) and (c); ESRS S2§11 (c); S2-1 §14; §17 (c);§18; S2-2 §22; S2-4 §32;
§33 (a) and (b); §36; §AR
33; §AR 36 (a); S2-5 §39,
§42 (b) and (c)GRI 408: Child
Labor 2016

408-1

Operations and suppliers
at significant risk forincidents of child laborPg. 209-211; 278-280; 286

ESRS S1 §14 (g); S1-1 §22
ESRS S2 §11 (b); S2-1 §18(2a)Forced or Compulsory LaborGRI 3: Material
Topics 2021

GRI 409: Forced
or Compulsory
Labor 2016

3-3

Management of material
topics

Pg. 209-211; 278-280; 286

ESRS S1 S1-1 §17; §20 (c);§22; S1-2 §27; S1-4 §38;
§39; §AR 40 (a); S1-5 §44;
§47 (b) and (c); ESRS S2§11 (c); S2-1 §14; §17 (c);§18; S2-2 §22; S2-4 §32;
§33 (a) and (b); §36; §AR
33; §AR 36 (a); S2-5 §39,
§42 (b) and (c)409-1

Operations and suppliers
at significant risk forincidents of forced orcompulsory laborPg. 209-211; 278-280; 286

ESRS S1 §14 (f); S1-1 §22
ESRS S2 §11 (b); S2-1 §18

(2a)

3-3

Management of material
topics

Pg. 289

ESRS S3 §9 (b); S3-1 §12,and §16 (c); S3-2 §21;
S3-4 §32 (a) to (d), §33 (a)and (b), §35, 36; §AR 31,§AR 34 (a); S3-5 §39, §43

410-1

Suppliers of security services
are selected according to theglobal qualification process
and procurement phases,
which include, among others,
an assessment related tohuman rights monitored
throughout the execution of
the contract.
Training and awarenessraising is a key aspect of theembedding of respect ofhuman rights into businessactivities with both Enelpeople and business partners.
Security personnel trainedSpecific training activities
in human rights policies orare carried out every year toprocedures
ensure that anyone who works
with the Group is aware of
the role they play in ensuringrespect for human rights incarrying out their activities.
Training is accessible in avariety of formats and content
so as to target each area (e.g.,courses on environmental
protection, occupational
health and safety, diversity andinclusion, community relations,anticorruption, digital training
and issues closely related tohuman rights).

Security Practices

GRI 3: Material
Topics 2021

GRI 410: Security
Practices 2016

Security-related impacts
is a sustainability mattercovered for S3 covered by
ESRS 1 §AR 16. Hence thisGRI disclosure is covered
by MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M(2b)Content Index

419

Omissions
GRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Rights of Indigenous Peoples
GRI 3: Material
Topics 2021
GRI 411: Rights
of Indigenous
Peoples 2016

3-3

Management of material
topics

Pg. 221-223; 286; 301-309

ESRS S3 §9 (b); S3-1 §12,
§15 and §16 (c); S3-2 §21;
S3-4 §32 (a) to (d), §33 (a)and (b), §35, 36; §AR 31,§AR 34 (a); S3-5 §39, §43

411-1

Incidents of violations
involving rights ofindigenous peoples

There were no reported
violations of the rights ofindigenous peoples.

ESRS S3 S3-1 §16 (c), AR
12; S3-4 §30, §32 (b), §33(b), §36
(1b)

3-3

Management of material
topics

Pg. 278-280

NOT COVERED

412-1

Operations that havebeen subject to humanrights reviews or impact
assessments

Pg. 278-280

NOT COVERED

412-2

Employee training on
human rights policies orprocedures

Pg. 278-280; Performanceindicators sec. Enel people

NOT COVERED

412-3

Significant investment
agreements and contracts
Performance indicators sec.
that include human rights
Sound governanceclauses or that underwent
human rights screening

NOT COVERED

3-3

Management of material
topics

Pg. 221-227; 278-280; 286;
301-309

ESRS S3 §9 (b); S3-1 §12,and §16 (c); S3-2 §21;
S3-4 §32 (a) to (d), §33 (a)and (b), §35, 36; §AR 31,§AR 34 (a); S3-5 §39, §43413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

Pg. 221-227; 278-280; 286

ESRS S3 S3-2 §19; S3-3
§25; S3-4 §AR 34 (c) (1b)413-2Operations withsignificant actual and
Pg. 286; 301-309
potential negative impacts
on local communities

ESRS 2 SBM-3 48 (c);ESRS S3 §9 (a) i and (b)Human Rights Assessment
GRI 3: Material
Topics 2021

GRI 412:
Human Rights
Assessment 2016

Local Communities
GRI 3: Material
Topics 2021

GRI 413: Local
Communities
2016

Supplier Social Assessment
GRI 3: Material
Topics 2021

3-3Management of material
topics

Pg. 209-212

ESRS G1 G1-2 §12 and§15 (a)GRI 414:
Supplier Social
Assessment 2016414-1

New suppliers that werescreened using social
criteria

Pg. 209-212; Performanceindicators sec. Sustainablesupply chain

ESRS G1 G1-2 §15 (b) (1b)3-3Management of material
topicsPg. 478-480

ESRS G1 G1-5 §27

Political contributions

Enel has no direct dealings
with political parties and does
not make funding of any kind,
as explicitly stated in point
2.2 of the Zero Tolerance ofCorruption Plan and point
3.26 of the Group’s Code of
Ethics. Some exceptions canbe found in some countries
as a result of the regulations
in force therein and after
analysis by the appropriatecompany bodies.

ESRS G1 G1-5 §29 (b)Public Policy
GRI 3: Material
Topics 2021

GRI 415: Public
Policy 2016

415-1

420 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Customer Health and Safety

Pg. 244; 254

ESRS S4 §10 (b); S4-1 §13,
§16 (c); S4-2 §20; S4-4
§31; §32 (a) and (b), §35,
§AR 30, §AR 33 (a); S4-5
§38, §41 (b) and (c)Pg. 254; New products
and services are evaluatedin terms of potential
health and safety impacts
throughout the value
chain to minimize them, asconfirmed by Section 2.2.2of the Human Rights Policy.

Personal safety of
consumers and end-users
is a sustainability matterfor S4 covered by ESRS
1 §AR 16. Hence this GRI
disclosure is covered by
MDR-P, MDR-A, MDR-T,
and/or as an entityspecific metric to bedisclosed according to
ESRS 1 §11 and pursuant
to MDR-M
(2b)Management of material
topics

Pg. 237-238

ESRS S4 §10 (b); S4-1 §13,
§16 (c); S4-2 §20; S4-4
§31; §32 (a) and (b), §35,
§AR 30, §AR 33 (a); S4-5
§38, §41 (b) and (c)417-1

Requirements for productand service informationand labeling

All sales companies of theGroup comply with the
obligations of transparency
required by various
national and supranational
regulations regarding thesource of electricity sold.
The bill then specifies themix of energy sources used
and the source thereof.

Information-related
impacts for consumers
and end-users is asustainability matter for S4
covered by ESRS 1 §AR 16.
Hence this GRI disclosure
is covered by MDR-P,
MDR-A, MDR-T, and/or as
an entity-specific metric
to be disclosed according
to ESRS 1 §11 andpursuant to MDR-M (2b)417-3Incidents of
non-complianceconcerning marketing
communications

In 2023, there were nocases of non-compliancewith regulations or
voluntary codes withrespect to the marketing
activities of the Enel Group.

ESRS S4 S4-4 §35GRI 3: Material
Topics 2021

3-3Management of material
topics

Pg. 282-286

ESRS S4 §10 (b); S4-1 §13
and §16 (c); S4-2 §20;
S4-4 §31, §32 (a) and (b),§35, §AR 30, §AR 33 (a);S4-5 §38, §41 (b) and (c)GRI 418:
Customer Privacy
2016

418-1

Substantiated complaints
concerning breaches ofcustomer privacy andlosses of customer data

Pg. 282-286

ESRS S4 S4-3 §AR 23;
S4-4 §35
(1a)GRI 3: Material
Topics 2021

GRI 416:
Customer Healthand Safety 2016

3-3

416-1

Management of material
topicsAssessment of the healthand safety impacts ofproduct and service
categories

Marketing and Labeling
GRI 3: Material
Topics 2021

3-3

GRI 417:
Marketing andLabeling 2016

(1b)Customer Privacy

General standard disclosures for the electric utility sector
General standard
disclosures forthe electric utility
sectorPage number(s)/URL/Direct
answerEU1

Pg. 14-17; 72-73;
Performanceindicators
sec. Enel’scommitment
to sustainable
development

Content Index

421

Omissions
GRI Standards

Disclosure

GRI 2: General Disclosures 2021

EU2

Pg. 14-17; 72-73;
Performanceindicators
sec. Enel’scommitment
to sustainable
development

EU3

Pg. 14; 229-230;
Performanceindicators sec.
Business drivers,
Customer
centricity

EU4

Pg. 14-15; 74-75;
Performanceindicators sec.
Business drivers,
Customer
centricity

Specific standard disclosures for the electric utility sector
Category: economic
Material aspect: demand side management
DMA

Pg. 229
MATERIALASPECT:RESEARCH AND
DEVELOPMENT

DMA

Pg. 339
MATERIALASPECT: SYSTEMEFFICIENCY

EU11

Performanceindicators sec.
Business drivers,
Customer
centricity

EU12

Performanceindicators sec.
Business drivers,
Customer
centricity

Category: social
Sub-category: labor practices and decent work
Material aspect: employment
DMA

Ch. Enel people

DMA

Pg. 190-191;
249-250

EU15

Performanceindicators sec.
Enel people

EU18

Pg. 249-250

Sub-category: society
Material aspect: local communities

422

DMA

Ch. Engaging communities

EU22

Pg. 301-309

Sustainability Report 2023

Location

Part Omitted Reason Explanation(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

OmissionsGRI Standards

Disclosure

Location

GRI 2: General Disclosures 2021

Part Omitted Reason Explanation

5

Appendix(Draft) GRI-ESRS
Interoperability Index(*)(1)
ESRS DISCLOSUREREQUIREMENTS(*)(2)Material aspect: disaster/emergency planning and response
DMA

Pg. 254

Sub-category: product responsibility
Material aspect: customer health and safety
EU25

Ch. Health and safety of people; Performance indicators

Material aspect: access
DMA

Ch. Business drivers

EU26

Italy: 0%
Spain: 0%Argentina: 0.7%
Brazil: 0%
Chile: 0.7%
Colombia: 0%
Peru: 4.8%

EU27

Performanceindicators sec.
Business drivers,
Customer
centricity

EU28

Performanceindicators sec.
Business drivers,
Customer
centricity

EU29

Performanceindicators sec.
Business drivers,
Customer
centricity

EU30

Performanceindicators sec.
Business drivers,
Customer
centricity

Material aspect: provision of information
DMA

Pg. 76-77; 237238

LegendNA: Not applicable(*)	© GRI & EFRAG 2023 [30 November 2023 Draft Version].
This [draft] Interoperability Index follows a columnar format mapping the GRI Standards disclosures to the corresponding ESRS disclosure requirements at
a granular level. The differences that arise at datapoint level are described below.
(1a) Differences in granularity: GRI requires further breakdowns or granularity.
(1b) Differences in data type: GRI requires quantitative disclosure and ESRS requires qualitative disclosure.
(2a) Differences in scope: GRI disclosure is broader and/or more specific than ESRS.
(2b) Differences in scope: GRI and ESRS disclosures have the same disclosure objective but differ in how data points are formulated.
(2c)	Differences in scope: GRI 403 covers employees and workers who are not employees but whose work and/or workplace is controlled by the organization. ESRS
S1-14 covers employees and non-employee workers (people with contracts with the undertaking to supply labour (“self-employed people”) or people provided
by undertakings primarily engaged in “employment activities” (NACE Code N78)). For fatalities, ESRS S1-14 covers workers working on the undertaking’s sites.
(3)	Difference in definition of non-employees: GRI 2-8 covers workers who are not employees and whose work is controlled by the organization. ESRS S1-7
covers non-employee workers (people with contracts with the undertaking to supply labour (“self-employed people”) or people provided by undertakings
primarily engaged in “employment activities” (NACE Code N78)).

Content Index

423

SASB
CONTENT INDEXThe following table shows the main indicators required by the Value Reporting Foundation - SASB standard in
relation to the primary sector of reference for Enel: “Electric Utilities & Power Generators Sector” version 2023. The
table shows, where present, the reference to the GRI indicator with which the disclosure required by the SASB was
covered, as well as references to the chapters of the 2023 Sustainability Report.

SECTOR: ELECTRIC UTILITIES & POWER GENERATORS SECTOR 2023
Topic

Codes

IF-EU-110a.1
Greenhouse
Gas Emissions &Energy Resource IF-EU-110a.2
Planning
IF-EU-110a.3

Air Quality

IF-EU-120a.1

Accounting Metric

2023

2022

2021 2023-2022

Gross global Scope 1 emissions, percentage
covered under (Mt) CO2-e

34.51

53.07

51.57

-18.56

Emissions-limiting regulations (%)(1)

83.0

75.9

61.5

7.1

Emissions-reporting regulations (%)

100

100

100

-

Greenhouse gas (GHG) emissions associated withpower deliveries (Mt) CO2-e(2)

56.8

77.8

77.9

-21.0

Discussion of long-term and short-term strategy
or plan to manage Scope 1 emissions, emissions
reduction targets, and an analysis of performanceagainst those targets

2023 Sustainability Report, chapter“Zero emissions ambition and just transition”

Air emissions of the following pollutants:
NOx (excluding N2O) (t)53,85074,22578,846-20,375

SOx

18,701

16,602

15,6152,099

Particulate matter (PM10, with respect tothermoelectric generation) (t)

1,259

1,227

1,099

32

49.6

-30.7

Lead (Pb)
Mercury (Hg from coal-fired power plants) (t)Water
Management

44.1

74.8
N/A

55.0

76.0

73.1

-21.0

303-3 a

45.2

43.8

-9.8

303-5 aPercentage of each in regions with High orExtremely High Baseline Water Stress(3) (%)

23.3

19.3

23.0

4.0

303-3

22.1

20.6

24.0

1.5

303-5

3

5

9

-2

303-4 dDescription of water management risks anddiscussion of strategies and practices to mitigate
those risks

2023 Sustainability Report, chapter“Roadmap towards natural capital conservation”

303-1
303-2

Amount of coal combustion products (CCPs)
generated (Mt)

0.81

1.18

0.79

-0.4

306-3

Percentage recycled (%)

79

82

70

-3

306-4

IF-EU-150a.3

Description of coal combustion products (CCPs)
management policies and procedures for active
and inactive operations

IF-EU-240a.1

Average retail electric rate for residential,commercial, and industrial customers
Number of residential customer electric
disconnections for non-payment (u)(4)Percentage reconnected within 30 days

424 Sustainability Report 2023

305-7

35.4

IF-EU-140a.3

IF-EU-240a.3

201-2

Total water consumed (Mm³)

IF-EU-140a.2

Coal AshManagement

305-1

Total water withdrawn (Mm³)

Number of incidents of non-complianceassociated with water quality permits, standards
and regulations

IF-EU-150a.1

305-1

N/A

Percentage of each in or near areas of dense
population

IF-EU-140a.1

GRI

2023 Sustainability Report, chapter“Roadmap towards natural capital conservation”
N/A
2,915,120

3,709,777

2,737,491-794,657

89.8

91.9

N/A

-2.1

EU27

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

SECTOR: ELECTRIC UTILITIES & POWER GENERATORS SECTOR 2023
Topic

Codes

End-Use
Efficiency &DemandNuclear Safety& Emergency
Management

2023

2022

2021 2023-2022

2023 Sustainability Report, chapter“Customer centricity”

Total recordable incident rate (TRIR) for direct
employees

1.46

1.24

1.27

0.22

Fatality rate for direct employees

0.025

0.008

0.024

0.017

Near miss frequency rate (NMFR) for direct
employees

5.575

5.120

N/A

0.455

Total recordable incident rate (TRIR) for contract
employees

2.07

2.66

3.52

-0.59

Fatality rate for contract employees

0.030

0.016

0.020

0.014

Near miss frequency rate (NMFR) for contract
employees

4.378

4.793

N/A

-0.415F-EU-420a.2

Percentage of electric load served by smart gridtechnology(5)

70.9

70.3

70.4

0.6

F-EU-420a.3

Customer electricity savings from efficiency
measures, by market (megawatt hours)

N/A
Available as of the 2024 reports

IF-EU-540a.1

Total number of nuclear power units, broken down
by results of most recent independent safety
review

4

Description of efforts to manage nuclear safety
and emergency preparedness

2023 Sustainability Report, chapter“Health and safety of people”

IF-EU-320a.1

F-EU-550a.1
Grid Resiliency

IF-EU-000.A

IF-EU-000.B

IF-EU-000.C

403-9

4

DMA EU
former
EU21

-

-

-

System Average Interruption Duration Index (SAIDI)

218

231

243

-13

EU29

System Average Interruption Frequency Index (SAIFI)

2.5

2.6

2.8

-0.1

EU28

Customer Average Interruption Duration Index(CAIDI), inclusive of major event days

88.1

89.0

N/A

-0.9

61,118,024

66,784,895

Total electricity delivered to:residential(6)108,813118,076

N/A-9,263

Total electricity delivered to:industrial and commercial(6)192,041

203,032

N/A-10,991

Total electricity delivered to:all other retail customers

N/A

N/A

N/A

566

Total electricity delivered to:wholesale customers

N/A

N/A

N/A

9,540

1,899,419

2,024,038

2,233,368-124,619

207,330

227,767

222,605-20,437-4

Number of: (a.) residential, (b.) commercial, and (c.)
industrial customers served

Length of transmission and distribution lines (km)-69,342,818 -5,666,871

Percentage by major energy source-coal

5.2

8.7

N/A

Percentage by major energy source-oil

2.4

2.2

N/A

-

Percentage by major energy source-gas

1.5

4.2

N/A

-3

Percentage by major energy source-nuclear

12.0

11.6

N/A

-

Percentage by major energy source-hydro

29.4

22.7

N/A

7

Percentage by major energy source-solar

7.0

5.0

N/A

2

Percentage by major energy source-wind

21.9

19.0

N/A

3

Percentage by major energy source-geothermal

2.9

2.7

N/A

-

Percentage by major energy source-biomass

-

-

-

-

70,934-2,360Percentage in regulated markets
IF-EU-000.E

4

Number of incidents of non-compliance withphysical or cybersecurity standards or regulations

Total electricity generated (GW)IF-EU-000.D

GRIDMA EU(former
EU7)
DMA EU(former
EU23)
2-29
3-3

Discussion of impact of external factors on
customer affordability of electricity, including the
economic conditions of the service territory

IF-EU-240a.4

Workforce
Health & Safety

Accounting Metric

Total wholesale electricity purchased(7) (MWh)

EU3

EU4

EU2

N/A
82,30084,660LegendN/A: Not applicable
N/A: Not available* Unaudited for indicators not corresponding to GRI Standards.
(1) The 2022 value also includes CO2 emissions from thermal power plants in Chile as they are covered by the “green tax system” (Sistema de Impuestos Verdes).
(2)	The value considers direct emissions from the generation of electricity in proprietary plants and also indirect emissions from the purchase of electricity andsales to the end customer. The 2021 and 2022 values were restated following an update of the emission factors of national electrical systems.
(3) In water stressed areas are included plants located in areas classifies as “arid” from WRI.
(4) For further details, see the chapter “Customer centricity” of this document.
(5) The value is calculated as: total energy billed with smart meters/total energy billed.

Content Index

425

TCFD
CONTENT INDEX

Reflecting the Group’s commitment to climate change related disclosures, the following table shows the alignmentof Enel’s disclosure with respect to 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 ofclimate risks in June 2017.

TCFD (TASK FORCE ON CLIMATE-RELATED FINANCIALDISCLOSURES) RECOMMENDATIONSREFERENCE TO ”ZERO EMISSIONS AMBITION AND JUST TRANSITION“
CHAPTER OF THE 2023 SUSTAINABILITY REPORT
Enel’s governance model to tackle climate change

Governance

Disclosure a)
Disclosure b)Competences of corporate bodies
Enel’s organizational model for management of climate-related issues
Climate change incentive and contribution scheme
Climate change and long-term scenarios

Disclosure c)

Enel’s energy transition scenarios
The physical climate scenario for the purpose of climate adaptation
actions
The strategy for tackling climate change

Strategy
Disclosure b)
Disclosure c)

Enel’s strategy for climate mitigation
2024-2026 Strategic Plan
Enel’s resilience and adaptation to climate change

Disclosure a)

Risk Management

Disclosure a)
Disclosure b)
Disclosure c)

Risks and opportunities connected with climate change
Assessment of risks related to the energy transition
Assessment of risks arising from physical phenomena

Enel’s performance in tackling climate change
Methodology for calculating greenhouse gas emissions
GHG emission trends in 2023
Metrics & Targets

Disclosure a)
Disclosure b)
Disclosure c)

Intensity metrics
Financial, operational and environmental metrics connected withclimate change
Financial and operational targets
Enel’s roadmap to decarbonization

426 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

SUSTAINABLE FINANCEDISCLOSURE REGULATION(PAI) CONTENT INDEXPAI (Principal Adverse Impact) indicators, according to the “Sustainable Finance Disclosure Regulation”, Regulation(EU) 2019/2088

INDICATORSREFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

2023

2022

2021

Scope 1 - Total direct
34.51
emissions, mil teq

53.07

51.57

For further information, please referto the chapter “Zero emissions
ambition and just transition”

Scope 2, location
based - Total indirect 3.28
emissions, mil teq(1)

3.82

3.77

For further information, please referto the chapter “Zero emissions
ambition and just transition”

5.10

6.11

For further information, please referto the chapter “Zero emissions
ambition and just transition”

71.04

70.46

For further information, please referto the chapter “Zero emissions
ambition and just transition”

Scope 2, market
based - Total indirect 4.51
emissions, mil teq(2)Scope 3 - Total
indirect emissions,mil teq(3)56.53

2. Carbon footprint

Indicator not directly applicable to Enel since it is calculated by the investor based on the data above.

3. GHG intensity ofinvestee companies

Indicator not directly applicable to Enel since it is calculated by the investor based on the data above.

4. Exposure tocompanies active inthe fossil fuel sector

Indicator not applicable to Enel.

5. Share of nonrenewable energy
consumption andproduction

It should be noted that for 2023
total non renewable energy
consumption is 752,814 TJ (2022
figure of 1,053,083 TJ) while
production from non renewablesources was 80,345 GWh (2022
figure of 115,318 GWh).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

It should be noted that for 2022
total non renewable energy
consumption is 1,053,083 TJ(2021 figure of 1,044,714 TJ) while
production from non renewablesources was 115,318 GWh (2021
figure of 113,789 GWh).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For information on the underlying
data useful for calculating theindicator, see the performanceindicators: section “Zero emissions
ambition and just transition” fordetails on fuel consumption by
primary source (TJ) and “Enel’scommitment to sustainable
progress” for power generationdata

6. Energy
consumption
intensity per highimpact climate
sectorFor 2023, it should be notedthat total energy consumption
was 806,729 TJ (2022 figure of
1,108,069 TJ).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For 2022, it should be notedthat total energy consumption
was 1,108,069 TJ (2021 figure of
1,099,302 TJ).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For information on the underlying
data useful for calculating theindicator, see the performanceindicators: section “Zero emissions
ambition and just transition” fordetails on fuel consumption by
primary source (TJ)

BIODIVERSITY

7. Activities
negatively affecting
biodiversity sensitiveareas

In 2023, only one power plant was
built in areas with high biodiversity
value, 3 fewer than in 2022.
Although an initial analysis, basedon the literature, found the area tobe affected by endangered species,
monitoring conducted during theenvironmental impact assessment
did not confirm their presence.

In 2022, 4 new power generation
plants were built in areas of highbiodiversity value, 2 fewer than in
2021, including 3 in critical habitats
and 1 in areas containing species atrisk of extinction, for which actionplans were developed to restore
habitats and protect species. These
include the project to improve
habitats for reptiles, amphibians
and other fauna groups on thephotovoltaic plant in Torrecilla, Spain.

For further information, please referto the chapter “Roadmap towards
natural capital conservation”

WATER

The topic is not material, as the potential pollutants in the discharges
comply with national regulatory benchmark and permit limits. For
8. Emissions to water
European plants, the limits are set according to BREFs and the quantities
are below the registration thresholds in the E-PRTR.

GREENHOUSEGAS EMISSIONSFor further details, please refer tothe chapter “Roadmap towards
natural capital conservation” section on liquid effluentsContent Index

427

WASTE

2023

2022

9. Hazardous waste
ratio

For 2023, it should be noted that
total hazardous waste was 68,703
t (2022 figure of 55,940 t). In any
case, it should be noted that the
final required indicator is not directly
communicable by Enel since it iscalculated by the investor.

For 2022, it should be noted that
total hazardous waste was 55,940 t(2021 figure of 64,365 t).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enel since
it is calculated by the investor.

For further details, please refer tothe chapter “Roadmap towards
natural capital conservation” andthe performance indicators: section“Zero emissions ambition and justtransition”

In 2022, 20 cases of violations
attributable to the principles
enshrined in the Group’s Human
Rights Policy, drafted in compliancewith the main international
benchmark standards of the United
Nations and the guidelines intended
for multinational companies of theOECD, were recorded. Specifically:• 9 violations related to “Conflictsof Interest/Corruption” in pursuitof personal interests and/or to thedetriment of the Company;• 11 violations attributable toimproper conduct by individual
employees harmful to respect fordiversity and non-discrimination
or failure to comply with internal
health and safety policies.

For further information, pleaserefer to the chapter “Sound
governance” – “Values and pillarsof corporate ethics” and“Stakeholder reports” – “Active
and passive fight against corruption”

11. Lack of processes
and compliancemechanisms tomonitor compliancewith UN Global
Compact principles
and OECD Guidelines
for Multinational
Enterprises

Implementation and monitoring of the commitments expressed in the
Human Rights Policy adopted by the Enel Group are based on a process,which, as required by the UN Guiding Principles on business and humanrights and the OECD Guidance for Responsible Business Conduct, has theobjective of assessing the robustness of the human rights management
system. The process covers the entire value chain in the various countries
in which the Group operates and makes it possible to assess both thelevel of alignment of processes and procedures with UNGPs management
requirements and the degree to which are in line with the principles
contained in the Human Rights Policy is integrated within business practices.
This process is codified in a globally applicable internal procedure andinvolves “identifying, preventing, mitigating and reporting” adverse effects
potentially caused by the Company. Specifically, it is divided into thefollowing stages:
1. assessment of the risk perceived by key stakeholders, at the individual
country level with reference to labor rights, local communities and theenvironment;
2. identification of any gaps aimed at analyzing the organizational andcontrol systems that guard against risks and identifying any deficiencies;
3. development of any improvement plans;
4. adoption of actions and monitoring.
Improvement measures highlighted by the process are included in the Group
Sustainability Plan, and communication on the outcomes of the perceived
risk and gap analysis is reported annually, within the Group Sustainability
Report, along with the progress of improvement plans.

For further information, please referto the chapter “Managing humanrights”, in particular the “Access toremedy” section

12. Unadjusted
gender pay gap

For 2023, the Women/Men Basic
Salary Ratio was 109.4% (2022 figureof 104.7%) and the Women/Men
Remuneration Ratio was 110.1%(2022 figure of 105.4%)

For 2022, the Women/Men Basic
Salary Ratio was 104.7% (2021 figureof 104.8%) and the Women/Men
Remuneration Ratio was 105.4%(2021 figure of 105.1%)

For further details, please refer tothe chapter “Enel people” and theperformance indicators: section“Valuing and enhancing people”

13. Board gender
diversity, %

44.4%

44.4%

For further details, see the chapter“Sound governance”

10. Violations of UN
Global Compact
principles andOrganisation
for Economic
Cooperation andDevelopment(OECD) Guidelines
for Multinational
Enterprises

In 2023, 25 cases of breaches,received through the whistleblowing
channel, were recorded and can belinked to the principles enshrinedin the Group’s Human Rights
Policy, drafted in line with the maininternational reference standards of
the United Nations Guiding Principles
on business and human rights andthe guidelines for multinational
companies of the OECD. Specifically:• 7 violations related to “Conflicts ofInterest/Corruption” in pursuit of
personal interests and/or to thedetriment of the Company;• 18 violations attributable toimproper conduct by individual
employees harmful to respect fordiversity and non-discrimination
or failure to comply with internal
health and safety policies.
Furthermore, as a result of checks
within the Company’s operations, anadditional 2 cases of “Corruption/
Conflict of Interest” in pursuit ofprivate interest were identified, forwhich 2 employees were dismissed.

SOCIAL AND
EMPLOYEEMATTERS

14. Exposure tocontroversial weapons(anti-personnel
mines, cluster
Indicator not applicable to Enel.
munitions, chemical
weapons andbiological weapons)428

Sustainability Report 2023

2021

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

INDICATORS

44.4%

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

ADDITIONAL
INDICATORS

3

Stakeholder engagement andmateriality analysis

2023

2022

2021

4

Performance 2023

5

Appendix

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

1. Emissions of
inorganic pollutants

Indicator not applicable to Enel.

2. Emissions of air
pollutants

For 2023, “SO2 emissions” were
18,701 t (2022 figure of 16,602t), “NOx emissions” were 53,850
t (2022 figure of 74,225 t), “Dustemissions” (PM 10) were 1,259 t(2022 figure of 1,227 t), and “Hgemissions” were 0.04 t (2022
figure of 0.08 t).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

For 2022, “SO2 emissions” were
16,602 t (2021 figure of 15,615t), “NOx emissions” were 74,225
t (2021 figure of 78,846 t), “Dustemissions” (PM 10) were 1,227 t(2021 figure of 1,099 t), and “Hgemissions” were 0.08 t (2021
figure of 0.05 t).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

For further details, please refer toperformance indicators: section“Zero emissions ambition and justtransition” and for details on “Other
atmospheric emissions” under thechapter “Roadmap towards natural
capital conservation”

3. Emissions of ozone
depleting substances

For 2023, “Emissions of ozone
depleting substances” were 14
kg CFC-11eq (2022 figure of 43 kg
CFC-11eq).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

For 2022, “Emissions of ozone
depleting substances” were 43 kg
CFC-11eq (2021 figure of 180 kg
CFC-11eq).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

See the performance indicators:
section “Zero emissions ambitionand just transition” for details on“Emissions of ozone depleting
substances”

4. . Investments incompanies withoutcarbon emission
reduction initiatives

Indicator not applicable to Enel.

--See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

1,044,714

See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

141,528

See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

34,787

See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

549,312

See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

48,482

See the performance indicators:
section “Zero emissions ambitionand just transition” and for further
qualitative details see the chapter“Roadmap towards natural capitalconservation”

270,605

See the performance indicators:
section “Zero emissions ambition”
and for further qualitative details
see the chapter “Roadmap towards
natural capital conservation”

EMISSIONS

5. Breakdown of energy
consumption by type of
non-renewable sourcesof energy (TJ)

from non-renewablesources (TJ)

Coal (TJ)

ENERGYPERFORMANCE Fuel oil (TJ)

Natural gas (TJ)

Diesel oil (TJ)

Uranium (TJ)

752,814117,193

32,483

276,567

60,797265,773

1,053,083

206,450

35,848469,425

58,486

282,872

Content Index 429

ADDITIONAL
INDICATORS

2022

6. Water usage andrecycling

For 2023, it should be noted thatthe total “Water withdrawals” was55.0 103 megaliters (2022 figure of
76.0 103 megaliters) while the total“Percentage recycled and reusedwater” was 8.6% (2022 figure of
9.4%).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For 2022, it should be noted thatthe total “Water withdrawals” was76.0 103 megaliters (2021 figure of
73.1 103 megaliters) while the total“Percentage recycled and reusedwater” was 9.4% (2021 figure of
8.3%).
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For further details, see theperformance indicators: section“Zero emissions ambition andjust transition” and the chapter“Roadmap towards natural capitalconservation”

7. Investments incompanies withoutwater management
policies

Enel is constantly committed to progressively reducing the specificneed for water for its plants and assets, through the efficient use
of water in existing thermal plants, the evolution of the energy mix
towards renewables, and the progressive reduction of generationfrom fossil fuels. Starting last year, Enel renewed and relaunched its
commitment to preserving water resources, adopting the target of a
65% reduction in specific withdrawal of fresh water by 2030 comparedwith the base year 2017.

Please refer to the chapter“Roadmap towards natural capitalconservation - Responsible use ofwater”

8. Exposure to areas ofhigh water stress

Enel also pays particular attention to the vulnerability of the resource,
by mapping and constantly monitoring all generation sites located inareas classified as water-stressed areas. Among the sites mapped,
those defined as “critical” are those positioned in water-stressed
areas and which procure significant volumes of fresh water. For thesesites, which are specifically thermoelectric and nuclear plants thatuse water resources for process and closed-cycle cooling needs,
water management methods and process performance are constantly
monitored, in order to minimize consumption and favor withdrawals
from sources of lower quality or which are non-scarce (wastewater,industrial or sea water).

Please refer to the chapter“Roadmap towards natural capitalconservation - Responsible use ofwater”WATER, WASTE 9. Investments in
AND MATERIAL companies producing
chemicals
EMISSIONS

Indicator not applicable to Enel.

10. Land degradation,desertification, soil
sealing

Enel is promoting a circular approach to land management, inPlease refer to the chapter
particular through the reuse and redevelopment of brownfield sites, as“Roadmap towards natural capitalwell as the repowering and lifetime extension of wind farms, in order toconservation”
limit the use of soil.

11. Investments incompanies without
sustainable land/
agriculture practices

Indicator not applicable to Enel.

12. Investments incompanies without
sustainable oceans/seas practices

Indicator not applicable to Enel.

The overall percentage of O&M
waste sent for recovery was 85%(2022 figure of 84.39%). In any
13. Non-recycled waste case, it should be noted thatratio
the final required indicator is
not directly communicable byEnel since it is calculated by theinvestor.

GREEN
SECURITIES

2021

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

2023

For 2022, it should be noted thatthe “Percentage of total waste
sent for recovery” was 84.39%(2021 figure of 61.83%).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

For further details, please refer tothe chapter “Roadmap towards
natural capital conservation” andthe performance indicators: section“Zero emissions ambition and justtransition”

14. Natural species andprotected areas

Protection of biodiversity is one of the strategic objectives of “Enel’s
Environmental Policy” and is regulated by a specific policy (“Enel’s
Please refer to the chapter
Biodiversity Policy”) adopted in 2015 and renewed in 2023 following“Roadmap towards natural capital
COP15. The policy defines the guidelines for all the Group’s biodiversity
conservation”
protection initiatives and the principles according to which they
operate, aligned with the Kunming-Montreal GBF.

15. Deforestation

In addition, Enel is committed to conserving forests and, if
Please refer to the chapter
deforestation cannot be avoided, will reforest areas of equivalent value “Roadmap towards natural capitalin line with the principle of “No Net Deforestation”.
conservation”

16. Share of securities
not certified as green
under a future EU legal
act setting up an EU
Green Bond Standard

Indicator not applicable to Enel.

430 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

ADDITIONAL
INDICATORS

3

Stakeholder engagement andmateriality analysis

2023

2022

2021

4

Performance 2023

5

Appendix

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

1. Investments incompanies without
workplace accident
prevention policies

It should be noted that there are two founding documents of thecommitment of the Group to health, safety and labor (both signedby the CEO): “Health and Safety Policy” and “Stop Work Policy”. The
first, updated in 2023, describes the guiding principles, strategic
goals, approach and priorities for action for continuous improvementof health and safety performance. It is based on several principles,
including compliance with regulations; adoption of the best standards;
implementation and continuous improvement of the Occupational
Health and Safety Management Systems in accordance with theinternational standard ISO 45001; and promotion of information
initiatives to disseminate and consolidate the culture of health, safety
and organizational well-being.
The second, the “Stop Work Policy” aims to empower Enel employees
and contractors in managing potential health, safety and environmental
risk situations.
It requires everyone, both employees and contractor personnel, topromptly intervene and stop any activity that may endanger their own
health and safety or that of others.
In any case, it should be noted that the final required indicator is notdirectly communicable by Enel since it is calculated by the investor.

For further details, please refer tothe chapter “Health and safety ofpeople”

2. Rate of accidents

For 2023, it should be noted that
Total Recordable Injuries was 726(2022 figure of 962). For a complete
disclosure of the types of injuries
reported by Enel (for Enel personnel
and contracted personnel) see the“Chapter reference” column.
In any case, it should be noted thatthe final required indicator is notdirectly reportable by Enel since it
is calculated by the investor basedon the information reported in thereport.

For 2022, it should be noted that
Total Recordable Injuries was
962 (2021 figure of 1,212). For acomplete disclosure of the typesof injuries reported by Enel (forEnel personnel and contracted
personnel) see the “Chapter
reference” column.
In any case, it should be noted thatthe final required indicator is notdirectly reportable by Enel since it
is calculated by the investor basedon the information reported in thereport.

For further details, please referto the chapter “Health and safetyof people” or the performanceindicators: section “Health andsafety of people”

3. Number of days lost
to injuries, accidents,
fatalities or illness

For 2023, the total lost days related
to work-related injuries alone
were 11,847(4) (of which 4,070
Enel personnel and 7,777 contract
personnel). The figure does nottake into account lost days related
to occupational illnesses.
In any case, it should be noted thatthe final required indicator is notdirectly communicable by Enelsince it is calculated by the investor.

For 2022, the total lost days
related to work-related injuries
alone were 8,505(5) (of which 2,371
Enel personnel and 6,134 contract
personnel). The figure does not
For further details, please refer totake into account lost days related
the chapter “Health and safety ofto occupational illnesses.
people”
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

4. Lack of a suppliercode of conduct

Enel’s purchasing processes are based on pre-contractual andcontractual conduct geared towards mutual loyalty, transparency andcollaboration. The basis of Enel’s procurement processes is loyalty,transparency and collaboration, and the Company asks suppliers not
only to guarantee the quality standards required, but also to commit toadopting best practices in terms of human rights and of the impact of
their activity on the environment. Indeed, there are clear and specificreferences in terms of codes of conduct, including Enel’s Human Rights
Policy, Code of Ethics, Zero Tolerance of Corruption Plan, and global
compliance programs.

For further information, please referto the chapter “Managing humanrights” and “Sound governance- Values and pillars of corporate
ethics”

5. Lack of grievance/complaints handlingmechanism related to
employee matters

In line with the third pillar of the United Nations Guiding Principles,
Enel has access channels for whistleblowing from people inside oroutside the Company, in compliance with the relevant legislation onwhistleblowing, accessible via web or toll-free number as indicated on
the Enel Code of Ethics webpage.

For further information, please referto the chapter “Managing humanrights” and “Sound governance- Values and pillars of corporate
ethics”

6. Insufficientwhistleblower
protection

The process of handling whistleblowing is regulated through the Policy“Handling of Reports (Whistleblowing)”, which establishes principles andrules to protect the confidentiality of the whistleblower’s identity andagainst any form of retaliation.

For further information, please referto the chapter “Sound governance”,
particularly the sections on “Code of
Ethics” and “Stakeholder reports”

7. Incidents of
discrimination (no.)

In 2023, 6 violations were recorded
through the whistleblowing
platform. These concerned casesof discrimination in the workplace,in particular 5 cases of harassment.

For further information, please referto the chapter “Sound governance”,
particularly the sections on “Code of
Ethics” and “Stakeholder reports”

SOCIAL AND
EMPLOYEEMATTERSIn 2022, 4 violations wererecorded relating to cases of
discrimination in the workplace, inparticular cases of harassment.

Content Index

431

ADDITIONAL
INDICATORSSOCIAL AND
EMPLOYEEMATTERS

2022

8. Excessive CEO
pay ratio (%)(6)Note that for 2023, Enel’s CEO pay
ratio was:
• 25% until May 10, 2023;• 43% from May 12, 2023 until theend of the year.
In any case, note that the final
indicator requested cannot bedirectly communicated by Enel, as
it is calculated by the investor.

For 2022, it should be noted that
Enel’s CEO pay ratio was 62%(2021 figure 92%)(7).
In any case, it should be notedthat the final required indicator
is not directly communicable byEnel since it is calculated by theinvestor.

9. Lack of a humanrights policy

In 2013, Enel adopted a Human Rights Policy, approved by the Boardof Directors and updated in 2021 to take into account the evolutionof international frameworks and corporate operational, organizationaland management processes. The Policy leverages commitments inseveral other codes of conduct, such as the Code of Ethics (adopted
as early as 2002), the Zero Tolerance of Corruption Plan, and global
compliance models, reinforcing and expanding on them. There are 12
policy principles divided into two macro themes: working practices
and community and society relations.

For further information, please referto the chapter “Managing humanrights” and the “Human Rights
Content Index”

10. Lack of due
diligence

As required by the UN Guidelines and the OECD Guidance on the
duty of care for responsible business conduct, Enel has defined a
process, codified in a globally applicable internal procedure, which,with reference to the entire value chain in the different countries inwhich it operates, aims to assess the robustness of the management
system to safeguard human rights. The process covers the entire value
chain in the various countries in which the Group operates and makes
it possible to assess both the level of alignment of processes andprocedures with UNGPs management requirements and the degree towhich compliance with the principles contained in the Human Rights
Policy is integrated within business practices.

For further information, please referto the chapter “Managing humanrights”, in particular the section
on “Due diligence process” andthe “Human Rights Content Index”
within the same chapter

Since 2013, Enel’s commitment against all forms of human trafficking,has been formally defined in Principle 2.1.1 Rejection of forced orcompulsory labor and child labor of the Human Rights Policy.

For further information, please referto the chapter “Managing humanrights” and the “Human Rights
Policy” available on the corporatewebsiteSince 2013, Enel’s commitment against all forms of slavery and childlabor has been formally defined in Principle 2.1.1 “Rejection of forced
or compulsory labor and child labor” in the “Human Rights Policy”. Enelbelieves that children and under-age workers constitute an at-risk
12. Operations andcategory, which is why it pays utmost attention to respecting their
suppliers at significant
rights along the value chain of activities. Enel rejects the use of childrisk of incidents of childlabor, as defined by the legislation in force in the country where thelaboractivities are carried out. In any case, the age must not be less thanthe minimum age established by ILO Convention no. 138. Human
resources management systems and procedures therefore guarantee
the absence of minors in the workforce.

For further information, please referto the chapter “Managing humanrights” and the “Human Rights
Policy” available on the corporatewebsite13. Operations andsuppliers at significant
risk of incidents offorced or compulsory
labor

Since 2013, Enel’s commitment against the use of any kind of forced orcompulsory labor has been formally defined in Principle 2.1.1 “Rejectionof forced or compulsory labor and child labor” in the “Human Rights
Policy”. The contracts considered overall regulate labor conditions,clearly defining workers’ rights (working hours, remuneration,
overtime, indemnity, benefits). Each worker is guaranteed a translated
employment contract in his/her native language.

For further information, please referto the chapter “Managing humanrights” and the “Human Rights
Policy” available on the corporatewebsite14. Number ofidentified cases ofsevere human rights
issues and incidents

In 2023, no serious human rights
violations were reported throughthe Group’s whistleblowing
channel.

For further information, please referto the chapter “Sound governance- Values and pillars of corporate
ethics” and “Stakeholder reports”

11. Lack of processes
and measures forpreventing trafficking
HUMAN RIGHTS in human beings

432

Sustainability Report 2023

2021

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

2023

In 2022, no serious human rights
violations were reported throughthe Group’s whistleblowing
channel.

For further information, see thechapter “Sound governance”
section “Remuneration report”

1Letter to stakeholders

2Enel’s commitment
to sustainable development

ADDITIONAL
INDICATORS

15. Lack of anticorruption and antibribery policies

ANTICORRUPTION
AND ANTIBRIBERY

3

Stakeholder engagement andmateriality analysis

2023

2022

2021

In compliance with the 10th Global Compact principle, according
to which “companies are committed to combating corruption in allits forms, including extortion and bribery”, Enel intends to pursue its
commitment to fighting corruption in all its forms – whether direct orindirect – by applying the principles expressed in the pillars of its AntiBribery Management System.
Enel’s Anti-Bribery Management System (ABMS) is based on theGroup’s commitment to fighting corruption by applying the criteriaof transparency and conduct as set out in the Zero Tolerance ofCorruption Plan (ZTC Plan) and confirmed in the Anti-Bribery Policy
adopted in compliance with international standard ISO 37001:2016 (onAnti-Bribery Management Systems).

16. Cases of insufficientaction taken to address Established breaches related to reports received are subject tobreaches of standards
disciplinary measures and/or sanctions against the individualsof anti-corruption and responsible.
anti-bribery

17. Number ofconvictions and amountFor 2023, there are no events toof fines for violation
report.
of anti-corruption andanti-bribery laws

Based on reports to the Ethics
Channel received in 2022, there
were no violations resulting
in convictions or fines for theindividuals involved. Other thanthose reported in connection
with referrals to the Code of
Ethics, there are no other events
to report.

4

Performance 2023

5

Appendix

REFERENCE TO 2023
SUSTAINABILITY REPORT CHAPTER

For further information, please referto the chapter “Sound governance- Values and pillars of corporate
ethics” and “Active and passive
fight against corruption”

Please refer to the chapter “Sound
governance - Values and pillars ofcorporate ethics” and “Stakeholder
reports” - “Active and passive fightagainst corruption”

Please refer to the chapter “Sound
governance - Values and pillars ofcorporate ethics” and “Stakeholder
reports” - “Active and passive fightagainst corruption”

(1)
(2)
(3)
(4)

The figure for 2022 emissions takes into account a more precise determination.
The figure for 2022 emissions takes into account a more precise determination.
The figure for 2022 emissions takes into account a more precise determination.
For injuries that are still open, for which the closing date of the event is not yet known, the convention of counting lost days until December 31 of the relevant year has been adopted.
(5) The figure for 2022 takes into account a more precise determination.
(6) CEO pay ratio has been calculated as follows:i) ratio between the total remuneration of the CEO/GM of Enel in office until May 10, 2023 and the average annual gross remuneration of Group employees;ii) ratio between the total remuneration of the CEO/GM of Enel in office from May 12, 2023 and the average annual gross remuneration of Group employees.
(7) In order to ensure that the figures for 2023, 2022 and 2021 are comparable, the 2022 and 2021 figures have been adjusted by applying the 2023 exchange
rate to the remuneration data.

Content Index

433

EUROPEANTAXONOMY
Enel welcomes the development of the EU taxonomy
regulation 2020/852, as it provides a standardized, science-based classification system to identify environmentally sustainable economic activities.
The EU taxonomy regulation acts as an important enabler
to promote sustainable investments and accelerate thedecarbonization of the European economy, while at thesame time creating reliability and transparency for investors and supporting companies in planning the Net Zerotransition.
Enel is committed to reporting on the implementation of
Article 8 of the EU taxonomy regulation 2020/852. Furthermore, the Company is committed on implementing
the requirements and criteria in all delegated acts issued
by the European Commission by the time of publication of
the Sustainability Report. Specifically, this report has beenadjusted based on the following regulations:• Delegated Regulation (EU) 2021/2139 of 4 June 2021
(Climate Delegated Act);• Delegated Regulation (EU) 2021/2178 of 6 July 2021 (Disclosures Delegated Act);• Delegated Regulation (EU) 2022/1214 of 9 March 2022
(Complementary Climate Delegated Act);• Delegated Regulation (EU) 2023/2485 of 27 June 2023
amending the Climate Delegated Act;
• Delegated Regulation (EU) 2023/2486 of 27 June 2023
(Environmental Delegated Act).
In particular, concerning the Climate Delegated Act,
which lays out the criteria for verifying the contribution
to climate mitigation and adaptation, Enel welcomes thedifferent thresholds defined in the EU taxonomy regulation on the basis of climate and environmental sciences,such as the specific emission limit of 100 gCO2eq/kWh(taking the whole life cycle into consideration) to measure the substantial contribution to achieving the climatechange mitigation objectives established for most power
generation technologies, in that it stems from a solid process based on a robust scientific foundation.
However, there are some activities that, although not covered under the EU taxonomy, are critical to ensuring thewellbeing of European citizens, especially in the short andmedium term, while contributing to sustainable development in the long term.
The EU taxonomy Climate Delegated Act has not explicitly
included the segment relating to retail power sales (with

434 Sustainability Report 2023

NACE code D35.1.4), on the assumption that it does notprovide a substantial contribution to climate change mitigation. Nevertheless, retail power constitutes a fundamental segment of the power value chain. The exclusionof such activity from the definition of a sustainable powersystem hinders the key role of the EU market liberalization and ultimately the efforts and value of a decarbonizedend use energy consumption. Furthermore, electrification, powered by renewable energy, is the most efficientand cost-effective solution to tackle climate change as itis clean, affordable, and high performing, as well as being
the only path for a truly clean energy system. Nevertheless,sustainable electrification of end energy uses requires
not only clean technologies in power generation, but also
power retail companies to offer renewable electricity toend customers to satisfy their energy demand.
For the reasons stated above, Enel is convinced that the EU
taxonomy should explicitly consider retail power activity
as an eligible activity for which alignment should rely on
the same criteria available for electricity production activities. In this way, power sales to end customers would
be linked to the production source, promoting retailers tosell power from sustainable sources. This fact is even more
relevant in integrated utilities that, even though operatingin the power production and power retail segments withdifferent companies within the same Group, run the business model following a comprehensive and unique view ofthe whole power value chain.
On the other hand, on 27 June 2023, an important step
forward was taken for the completion of the formative
process through the publication of the new DelegatedRegulation (EU) 2023/2486, so-called Environmental
Delegated Act, which sets out the technical screening
criteria also for the remaining four objectives concerning
the sustainable use and protection of water and marine
resources, the transition to a circular economy, the prevention and reduction of pollution, and the protection
and restoration of biodiversity and ecosystems. Despite
the relevant role of this Delegated Act for the overall sustainable development of the European Union, the impact
on the electricity sector is much limited as most of theidentified business activities do not fall within the sector,
as opposite as the Climate Delegated Act. However, few
non-core business activities performed by Enel have been
identified due to their contribution to two environmental
objectives (the protection and restoration of biodiversi-

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

ty and ecosystem and circular economy), although all ofthem with a marginal impact in terms of financial metrics.
Going beyond the disclosure requirements of the taxonomy, Enel has included the Capex alignment percentage as
one of the key performance indicators of the Sustainability-Linked Financing Framework used to define the Company’s sustainable financial instruments for the second
consecutive year. With this important move forward, Enel

4

Performance 2023

5

Appendix

reinforces the role of the taxonomy as a driver to promotesustainable investment decisions and show how sustainability can be fully integrated into the financial landscape.
Consequently, Enel confirmed its target on the proportionof Capex aligned to the EU taxonomy equal to or higher
than 80% for the period 2024-2026, according to the newStrategic Plan presented during the Capital Markets Day in
November 2023.

The implementation process

1.

Identification ofeligible economic
activities

2.

Analysisof substantial
contribution

3.

Assessment of theprinciple of Do No
Significant Harm(DNSH) to otherenvironmental
objectives

By means of a process overseen by the CEO and Top Management, involving the relevant Functions at corporate
and Country level, as well as all Business Lines, a five-stepprocess is in place to analyze the applicability of the EU
taxonomy regulation throughout the entire value chain
and in all countries where the Company operates.
1. Identification of eligible economic activities: Enel has
identified all activities within the Group’s portfolio thatare included in the Climate Delegated Act, the Complementary Delegated Act and in the newly published
Environmental Delegated Act on the remaining four
objectives. The process was conducted by taking into
consideration all six objectives, even though the Groupis mostly exposed to climate change mitigation and adaptation objectives while marginally to the other four
objectives. Namely, only the following minor activities
related to protection and restoration of biodiversity andecosystem and circular economy were identified as eligible even though they are not material for the Group:“sale of spare parts” and “conservation, including restoration, of habitats, ecosystems and species”.
2. Analysis of substantial contribution:
2.1 Climate change mitigation: eligible activities identified in the previous phase have been thoroughly analyzed for their compliance with the specific technicalscreening criteria established to measure their substantial contribution to climate change mitigation. The
analysis was carried out following the criteria both in
the Climate Delegated Act and Complementary Delegated Act, namely:

4.

Verification ofminimum social
safeguards

5.

Calculationof financial
metricsa. Technological analysis for power generation activities. The threshold of 100 gCO2eq/kWh measured ona life cycle basis was met according to the following
technological approach:• coal and liquid fossil fuels: technology excluded
from the EU taxonomy regulation;• gas: the compliance with the threshold of 100
gCO2eq/kWh set out in the Complementary Delegated Act has been analyzed in all of the gas power plants, while the potential compliance with thealternative criteria set out in the Delegated Act
for electricity production from gas has also beenchecked;• nuclear: Enel has analyzed the eligibility of thethree different activities related to electricity production from nuclear identified in the Complementary Delegated Act according to the nuclear
assets portfolio in Spain;• wind, solar and battery storage: these are exempt
from the carbon intensity threshold verification
due to their substantial contribution to climatechange mitigation;• hydroelectric power: the carbon intensity threshold was verified only in power plants with a power
density below 5 W/m2. All power plants with a power density above 5 W/m2, as well as flowing water
plants and pumped storage plants, are exempt
from the threshold verification;• geothermal: the threshold was verified by carrying
out life cycle assessments certified by indepen-

European Taxonomy 435

dent third parties.
b. Analysis at country, region and system level for thetransmission and distribution of electricity. Compliance with the following technical screening criteria
was analyzed in all countries where Enel distributes
electricity:• the Distribution System Operator (DSO) is part of
the European interconnected system; or• non-European DSOs belong to countries withmore than 67% of newly enabled generation capacity in the system is below the generationthreshold value of 100 gCO2eq/kWh measured on alife cycle basis in accordance with electricity generation criteria, over period 2018-2022 (data madeavailable by national authorities over a rolling fiveyear period prior to the preparation of the 2021
Sustainability Report); or• the average emission factor of the non-European
DSO network is below the threshold value of 100
gCO2eq/kWh measured on a life cycle basis in accordance with electricity generation criteria, in the
period 2018-2022.
Infrastructure dedicated to creating a direct connection or expanding an existing direct connection
between a substation or grid and a power production plant that is more greenhouse gas intensive
than 100 gCO2eq/kWh measured on a life cycle basis
has been identified and excluded from the eligiblealigned DSOs activities.
c. Product cluster level analysis for Enel X Global Retail (Business Line). A comprehensive analysis of theEnel X portfolio was performed, classifying eligible
activities into the sectors identified in the Climate
Delegated Act, such as construction and real estate,transportation, or professional, scientific, and technical activities.
2.2 Climate change adaptation: none of the businessactivities performed by the Group can be considered asenabling activities for climate adaptation as they do notprovide adaptation solutions in accordance with Article
11 (1) (b) of the taxonomy regulation, hence no revenues
can be considered eligible for this target.
Nevertheless, some business activities performed by
the Group are considered adapted as they include adaptation solutions in accordance with Article 11 (1)(a) of
the taxonomy regulation. In this case capital expenditures and operational expenditures devoted to the adaptation solutions may be accounted for the climate
adaptation objective. In the case of Enel, most of theadaptation solutions are inherent part of the design or
refurbishment of assets that themselves are aligned toclimate change mitigation objective, making it difficult
to distinguish Capex/Opex from each of the two climate

436 Sustainability Report 2023

objectives (mitigation and adaptation). Therefore, andfollowing the guidelines set out in the European Commission Notice 2023/305 full Capex and Opex figures
have been reported under climate change mitigation
objective only as this is the prevalent objective for theGroup, hence avoiding any potential double counting.
Further information on Enel’s approach to climate adaptation can be found in chapter “Zero emissions ambition and just transition” of the 2023 Sustainability Report and in chapters “Group strategy“ and “Risk management“ of the 2023 Integrated Annual Report.
2.3 Other environmental objectives: the analysis of thealignment of the two minor activities related to protection and restoration of biodiversity and ecosystem andcircular economy was not performed for the purposeof the 2023 Sustainability Report and will be disclosed
next year in coherence with the timeline established in
the Environmental Delegated Act.
3. Assessment of the principle of Do No Significant
Harm (DNSH) to other objectives: an analysis of existing environmental procedures was carried out to verify compliance with the DNSH quality criteria for eachtype of technology (for power generation), region (fortransmission and distribution) and product cluster level(for activities of the Enel X Global Retail Business Line),
adapted to the specific requirements set out for eachof the following environmental objectives:• climate change mitigation: applicable only for those
activities that are eligible for climate adaptationor any of the other four objectives. In this case, thecriteria are considered met as the same activities
performed by Enel that might contribute to climate
adaptation definitely contribute to climate mitigation, meaning that they meet the technical screening
criteria of climate mitigation, which are equivalent ormore demanding than the corresponding DNSH criteria on climate mitigation;• adaptation to climate change: analysis of global procedures (including emerging and restoration procedures), assessment of physical climate risks andsolutions and adaptation plans in place covering all
applicable activities related to power generation,transmission and networks and Enel X Business Line;• sustainable use and protection of waters and marine
resources: analysis of water related procedures, authorizations, environmental impact assessments, national regulations and water management plans. The
analysis was limited to power generation activities, as
it is not applicable to other Business Lines;• transition to a circular economy: analysis of waste
management plans, procurement requirements andcircular economy projects and plans covering all activities applicable to the generation, transmission

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2Enel’s commitment
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Stakeholder engagement andmateriality analysis

and distribution of electricity and to the products ofthe Enel X Business Line;• pollution prevention and control: analysis of global
procedures and national regulations concerning all
applicable activities from power generation, transmission and networks. In addition, specific pollutants
were further analyzed, including electromagnetic radiation and PCBs for transmission and networks, andemissions from power generation activities for air
quality;• protection and restoration of biodiversity andeco-systems: analysis of global procedures and national regulations covering all applicable activities
from power generation, transmission and distribution.
4. Assessment of the minimum social safeguards: theGroup’s human rights due diligence process covers theentire perimeter of Enel. Its commitment to respecthuman rights is grounded in the United Nations framework “Protect, Respect and Remedy”, set out in the
Guiding Principles on Business and Human Rights, and4

Performance 2023

5

Appendixin the OECD Guidelines for Multinational Enterprises.
Since 2013, Enel has adopted a specific Human Rights
Policy reflecting its commitment, which was updated
in 2021 to take into account the evolving internationalframeworks of reference and its operating, organizational and managerial processes. The content of thepolicy refers to internationally recognized human rights,
understood, at a minimum, as those expressed in theInternational Bill of Human Rights and the principles
concerning the fundamental rights set out in the International Labour Organization conventions underlying
the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
For the approach to human rights, phases in the due
diligence process, and communication of findings and(possible) remediation plans, please see the chapter“Managing human rights”.
The following table illustrates the approach to the minimum safeguards criteria.

Minimum safeguards criteria
HUMAN RIGHTS• The main reference international standards underpinning the Group’s commitment are the United Nations“Protect, Respect and Remedy” framework outlined in its Guiding Principles on Business and Human Rights
and the OECD Guidelines for Multinational Enterprises. The commitment is transparently reflected in a specific
Human Rights Policy developed and adopted as early as 2013 and refreshed in 2021.
• The Group has committed to monitor the implementation of the policy through a specific due diligence(1)process in line with the UN Guidelines and with the OECD Due Diligence Guidance for Responsible BusinessConduct. For further details, see the chapter “Managing human rights”.

CORRUPTION• As reflected in the Human Rights Policy, Enel rejects corruption in all its forms, both direct and indirect, since
it believes it is one of the factors undermining institutions and democracy, ethical values and justice, and thewellbeing and development of society.
• To this end, Enel reiterates its commitment to fight corruption through a plan called “Zero Tolerance ofCorruption” which is one of the pillars on which the Anti-bribery Management System and the Group Code of
Ethics are grounded.

TAX STRATEGY• Enel Group has set out a tax strategy to ensure a fair, responsible and transparent taxation, with the aim ofguaranteeing consistent and uniform tax management across all entities belonging to the Group. The tax
management activity is based on the concurrent objectives of:
1. the correct and timely calculation and payment of due taxes, and fulfilment of the related obligations;2. the mitigation of tax risk, defined as the risk of violating tax laws, or of abusing the principles and purposesof tax regulations. For additional details, please refer to the chapter “Tax transparency”.

FAIR COMPETITION(1)• Enel promotes the principle of fair competition and refrains from collusive or predatory conduct and abusesof a dominant position, as reflected in the Group Code of Ethics.

In the context of the Guiding Principles on Business and Human Rights (Principles 17-21), this term refers to a continuously evolving management system implemented by a company, in accordance with the sector in which it works, its operating contexts, its organizational structure, to ensure it is not involved in humanrights violations. This implies “identifying, preventing, mitigating and reporting” potential negative impacts deriving from the company’s business activities.

European Taxonomy437

5. Calculation of financial metrics: the corresponding financial metrics were associated with each economic
activity according to the classification made in steps
1-4, collecting the relevant financial information fromthe Group’s accounting system. In addition, some proxies have been performed for specific activities when financial information was not available in the accounting
system (described in the section on the calculation offinancial metrics).
Through this process, Enel has classified all economic

activities along its value chain for their contribution to
the climate change mitigation objective, which is themost relevant for the Group, according to the following
three categories: eligible aligned, eligible non-aligned,
and non-eligible. However, it is important to note that
activities classified as eligible aligned from a climatechange mitigation perspective also include adaptation
solutions (mainly in the design and construction phaseof assets) and are therefore also eligible aligned for thisother objective.

ELIGIBLE ALIGNED

Eligible aligned: refers to an economic activity that simultaneously satisfies the following
three conditions:• it is explicitly included in the EU taxonomy regulation for its substantial contribution to climatechange mitigation; and• it meets the specific criteria developed by the EU taxonomy regulation for that specific environmental objective; and• it meets all DNSH criteria and minimum social safeguards.

ELIGIBLE NONALIGNED

Eligible non-aligned: refers to an economic activity that:• is explicitly included in the EU taxonomy regulation for its substantial contribution to climatechange mitigation or adaptation; but• does not meet the specific criteria developed by the EU taxonomy regulation for those specificenvironmental objectives; or• does not meet all the DNSH criteria and/or the minimum social safeguards.

NON-ELIGIBLE

Non-eligible: refers to an economic activity that has not been identified by the EU taxonomy regulation as a substantial contributor to climate change mitigation and for which no criteria havetherefore been developed. The logic of the European Commission is that these activities might:• not have a significant impact on climate change mitigation or could be integrated into the EU
taxonomy regulation at a later stage;• cause a very significant impact on climate change mitigation, so they cannot be eligible in any case.

Consequently, the existence of the third category “non-eligible” makes it impossible to achieve a business modelthat is fully aligned with the criteria of the EU taxonomy

438 Sustainability Report 2023

regulation, even though these non-eligible activities might
not cause any harm to the EU’s environmental objectives.

1

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2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Mapping of Enel’s business activities for their contribution
to climate change mitigation

EUROPEANTAXONOMY

Mapping inaccordancewith Climate
Delegated
Act andComplementary
Delegated Act

ELIGIBLE
ALIGNEDNON-ALIGNEDNON-ELIGIBLE• Solar and wind
• Hydro (99.4%)• Geothermal• RES storage• Manufacture ofsolar panels

Hydro (0.6%)• Coal• Nuclear(1)• Fuel-oil and OCGT(2)• Gaseous fossil fuels(CCGT)
Distribution in Europe,
Brazil, Argentina, Chileand Colombia without
new connections between
a substation or grid anda generation plant withgreenhouse gas intensity
over threshold of
100 gCO2eq/kWh

Smart Lighting, e-Bus,
Energy Efficiency, Home,
Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
e-Mobility, Battery Energy
Storage

Trading• New connections
between a substation
or grid and a generation
plant with greenhousegas intensity overthreshold of
100 gCO2eq/kWh• Distribution in Peru

Retail saleof poweror gas to
end users• Financial services, generalservices and otherunmeasured productclusters(1)

The operation of the nuclear generation portfolio is not included among the eligible activities considered by the Complementary Delegated Act in thegeneration of electricity from nuclear power plants.
(2) Includes both fuel-oil and gas (OCGT) as it is not possible to divide the two types of fuel. Fuel-oil was considered to be the prevalent fossil fuel and istherefore non-eligible under the EU taxonomy regulation.

In 2023, the eligibility analysis of Enel’s productive economic
activities has been updated by incorporating the publisheddelegated acts, implementing the process described above
based on the three categories mentioned above.

European Taxonomy 439

ELIGIBLE ALIGNED ACTIVITIESBUSINESS
LINE

POWER
GENERATIONACTIVITYDESCRIPTION OF THE ACTIVITY(ACCORDING TO THE EU TAXONOMY REGULATION)

CONDITION ALIGNED WITH REQUIREMENTS

Electricity(4.3) - Construction or operation of electricity
generation from generation facilities that produce electricity fromwind power
wind power.

100% of the installed capacity is eligible and aligned
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, circular
economy and biodiversity;• it complies overall with minimum social safeguards.

Electricity
generation
using solar
photovoltaic
technology(4.1) - Construction or operation of electricity
generation facilities that produce electricity using
solar photovoltaic (PV) technology.

100% of the installed capacity is eligible and aligned
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, circular
economy and biodiversity;• it complies overall with minimum social safeguards.

Electricity(4.5) - Construction or operation of electricity
generation from generation facilities that produce electricity fromhydropowerhydropower.

99.4% of the installed capacity is eligible and aligned
because:• it makes a substantial contribution to climatechange mitigation, since it includes all flowing
water plants, all pumped storage plants, allreservoir plants with a power density above 5 W/
m2 and all reservoir plants below 5 W/m2 with a life
cycle greenhouse gas intensity below 100 gCO2eq/
kWh as certified by G-RES;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, waterand biodiversity;• it complies overall with minimum social safeguards.

Electricity(4.6) - Construction or operation of electricity
generation from generation facilities that produce electricity fromgeothermal
geothermal energy.
energy100% of the installed capacity is eligible and aligned
because:• it makes a substantial contribution to climatechange mitigation, as all power plants have a life
cycle GHG emission intensity of less than 100
gCO2eq/kWh, as verified by an independent third
party;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, water,
pollution and biodiversity;• it complies overall with minimum social safeguards.

Storage ofelectricity(batteries)(4.10) - Construction and operation of facilities that
store electricity.

100% of the installed capacity is eligible and aligned
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, circular
economy, water and biodiversity;• it complies overall with minimum social safeguards.

Manufacture ofsolar panels(3.1) - Manufacture of renewable energy technologies. The activity is eligible and aligned because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for thefollowing applicable objectives: adaptation, circular
economy, water and biodiversity;• it complies overall with minimum social safeguards.

440 Sustainability Report 2023

1

Letter to stakeholders

BUSINESS
LINE

2
Enel’s commitment
to sustainable development

ACTIVITY

3

Stakeholder engagement andmateriality analysis

DESCRIPTION OF THE ACTIVITY(ACCORDING TO THE EU TAXONOMY REGULATION)

Performance 2023

5

Appendix

CONDITION ALIGNED WITH REQUIREMENTS

Transmission
and distributionof electricity(4.9) - Construction and operation of transmission
systems that transport the electricity on the extra
high-voltage and high-voltage interconnected
system. Construction and operation of distribution
systems that transport electricity on high-voltage,
medium-voltage and low-voltage distribution
systems.

The DSOs in Italy, Romania, Spain, Brazil, Chile,
Colombia and Argentina are aligned in that:• they make a substantial contribution to climatechange mitigation, in particular:– the DSOs in Italy, Romania and Spain are part of
the European interconnected system;– the DSOs in Brazil, Chile, Colombia and Argentina
belong to electricity systems where more than
67% of newly installed capacity in the last five
years has a life cycle GHG intensity of less than 100
gCO2eq/kWh, according to the latest data available
from national authorities;• they comply overall with DNSH criteria for thefollowing applicable objectives: adaptation, circular
economy, pollution and biodiversity.
Some infrastructures have been excluded from these
DSOs (refer to eligible but not aligned activities).

Smart Lighting(City)

Installation, maintenance and repair of energy
efficiency equipment (7.3) - Installation andreplacement of energy efficient light sources (7.3 d).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation and pollution objectives;• it complies overall with minimum social safeguards.

e-Bus(City)

Urban and suburban transport, road passenger
transport (6.3) - The activity provides urban orsuburban passenger transport and its direct (tailpipe)
CO2 emissions are zero (6.3 a).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theapplicable objectives: adaptation, circular economy
and pollution;• it complies overall with minimum social safeguards.

Energy Efficiency Installation, maintenance and repair of energy efficiency(City)
equipment (7.3) - Addition of insulation to existingenvelope components, such as external walls (including
green walls), roofs (including green roofs), lofts,basements and ground floors (including measures toensure air-tightness, measures to reduce the effects ofthermal bridges and scaffolding) and products for theapplication of the insulation to the building envelope(including mechanical fixings and adhesive) (7.3 a) Replacement of existing windows with new energy
efficient windows (7.3 b) - Replacement of existing
external doors with new energy efficient doors (7.3 c)- Installation and replacement of energy efficient lightsources (7.3 d) - Installation, replacement, maintenanceand repair of heating, ventilation and air-conditioning(HVAC) and water heating systems, including equipment
related to district heating services, with highly efficienttechnologies (7.3 e).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation objective;• it complies overall with minimum social safeguards.

Home

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation and pollution objectives;• it complies overall with minimum social safeguards.

ENEL GRIDSENEL X

4

Vivi Meglio
Unifamiliare(Home)
Condominium

Installation, maintenance and repair of energy
efficiency equipment (7.3) (7.3 a-e). For the details, see
the points discussed above.
Installation, maintenance and repair of instruments
and devices for measuring, regulation and controllingenergy performance of buildings (7.5) - Installation,
maintenance and repair of zoned thermostats, smart
thermostat systems and sensing equipment, including
motion and day light control (7.5 a).
Installation, maintenance and repair of renewableenergy technologies (7.6) - Installation, maintenanceand repair of solar photovoltaic systems and theancillary technical equipment (7.6 a).

European Taxonomy 441

BUSINESSLINE

ACTIVITY
Distributed
Energy(Industry)

DESCRIPTION OF THE ACTIVITY(ACCORDING TO THE EU TAXONOMY REGULATION)

CONDITION ALIGNED WITH REQUIREMENTS

Professional services related to energy performanceof buildings (9.3).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation objective;• it complies overall with minimum social safeguards.

Installation, maintenance and repair of energy
efficiency equipment (7.3) - Installation andreplacement of energy efficient light sources (7.3 d) Installation, replacement, maintenance and repair ofheating, ventilation and air-conditioning (HVAC) andwater heating systems, including equipment related
to district heating services, with highly efficienttechnologies (7.3 e) - Installation, maintenanceand repair of renewable energy technologies(7.6) - Installation, maintenance and repair of solar
photovoltaic systems and the ancillary technicalequipment (7.6 a).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation and pollution objectives;• it complies overall with minimum social safeguards.

Battery
Energy Storage(Industry)

Installation, maintenance and repair of renewableenergy technologies (7.6) - Installation, maintenanceand repair of thermal or electric energy storage units
and the ancillary technical equipment (7.6 f).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for theadaptation objective;• it complies overall with minimum social safeguards.

e-Mobility

Installation, maintenance and repair of charging
stations for electric vehicles in buildings (and parking
spaces attached to buildings) (7.4) - Infrastructure for
personal mobility (6.13).

The whole activity is aligned with the requirements
because:• it makes a substantial contribution to climatechange mitigation, as no specific technicalscreening criteria are required;• it complies overall with DNSH criteria for all
objectives;• it complies overall with minimum social safeguards.

ENEL X

442 Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
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Stakeholder engagement andmateriality analysis

4

Performance 2023

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Appendix

ELIGIBLE NON-ALIGNED ACTIVITIESBUSINESS
LINE

POWER
GENERATIONACTIVITYDESCRIPTION OF THE ACTIVITY(ACCORDING TO THE EU TAXONOMY REGULATION) ELIGIBLE NON-ALIGNED CONDITION

Electricity
generation fromhydropower(4.5) - Construction or operation of electricity
generation facilities that produce electricity fromhydropower.

0.6% of installed capacity is eligible but not aligned
because it was not possible to verify the technicalscreening criteria related to power density and thus
to the life cycle greenhouse gas intensity.

Electricity
generation fromfossil gaseous
fuels(4.29) - Construction or operation of electricity
generation facilities that produce electricity fromfossil gaseous fuels.
It refers to thermal power plants with CCGT
technology.

100% of installed capacity is eligible but not aligned
because all power plants exceed the threshold of 100
gCO2eq/kWh measured on life cycle basis, while also
the alternative criteria are not satisfied.

Transmission and Transmission and distribution of electricity (4.9) distribution ofConstruction and operation of transmission systems
electricity
that transport the electricity on the extra highvoltage and high-voltage interconnected system.
Construction and operation of distribution systems
that transport electricity on high-voltage, mediumvoltage and low-voltage distribution systems.
ENEL GRIDS

Infrastructures built during the year and dedicatedto the realization of a direct connection or the
expansion of an existing direct connection between
a substation or grid and a power plant with agreenhouse gas intensity exceeding the threshold of
100 gCO2eq/kWh measured on a life cycle basis.
The DSO in Peru has a GHG intensity in excess of
100 gCO2eq/kWh, and belong to electrical systems
where less than 67% of newly installed capacity in thelast five years has a life cycle GHG intensity of lessthan 100 gCO2eq/kWh, according to the latest data
available from national authorities.

Sale of spare parts – Circular economy 5.2
Conservation, including restoration, of habitats, ecosystems and species - Biodiversity and ecosystems 1.1
The analysis of the alignment of the two minor activities was not carried out for the purpose of the Sustainability Report 2023 and will be disclosed
next year in line with the timeline set by the Environmental Delegated Act.

NON-ELIGIBLE ACTIVITIESBUSINESS LINE

POWER
GENERATIONACTIVITYDESCRIPTION OF THE ACTIVITYNON-ELIGIBLE CONDITION

Generation ofelectricity fromcoal and liquid
fossil fuels

Construction and operation of coalfired andliquid fossil fuel power plants.
It refers to thermal power plants that combine
fuel-oil and gas, with OCGT technology, for whicha further breakdown is not feasible.

The activity has been excluded from the EU
taxonomy regulation as it is considered very harmful.

Electricity
generated by
nuclear power
plantsConstruction and operation of nuclear power
plants.

The business activity performed by Enel in its
nuclear power plants in Spain has not been explicitly
mentioned in the Complementary Delegated Act,and it does not fit within the three specific nuclearrelated activities identified in such Delegated Act.

Energy sales(wholesale)

Wholesale of power and related activities.

This activity is not considered in the Climate
Delegated Act.

Electricity andgas sales(end customers)

Retail sales of electricity and gas by Group
companies.

This activity is not considered in the Climate
Delegated Act.

Other activities

Financial services, hardware and software,insurance policies and other general services.

These activities are not considered in the Climate
Delegated Act.

TRADING

MARKET

ENEL X

European Taxonomy 443

Process for calculating
the financial metrics
During the process of calculating the financial metrics, thefollowing criteria were adopted and the following considerations were made.
• The three financial metrics required by the EU taxonomy
regulation (turnover, capital expenditure – Capex – andoperating expenditure – Opex) were calculated according to the eligibility analysis described in the previous
section.
• Although not expressly required, Enel also performed
an assessment in terms of the ordinary gross operating
profit (EBITDA) believing that this metric represents theactual financial performance of integrated utilities suchas Enel. A metric that considers only turnover is strongly
influenced by the business activities with a high volumeof revenues (such as the wholesale market – trading)that do not contribute proportionally to growth in theordinary gross operating profit to the same extent asother business activities.
• The financial information was gathered from the digital
accounting system used by the Enel Group, or from the
management systems in use by the Company’s BusinessLines. However, some proxies were delegated to provide
a more detailed representation of the figures or to exclude specific activities from the overall calculation ofeligible alignment (such as non-aligned hydroelectric
power generation or infrastructure considered eligible
but not aligned among eligible and aligned distribution
network systems). For example, the following proxies
were used:– hydroelectric: eligible non-aligned hydroelectric
power plants were excluded by considering their output multiplied by the average turnover per unit in theyears 2022 and 2023. This approach was also extended to Capex, Opex and EBITDA;– infrastructure and networks: concerning Capex,
new connections between a substation or grid anda power plant with a greenhouse gas intensity above
the threshold of 100 gCO2eq/kWh were excluded considering their capacity (in MW) multiplied by the average Capex per unit (k€/MW) for the years 2022 and444 Sustainability Report 2023

2023. This approach was also extended to turnoverbased on the on the assets’ lifespan.
Aggregate
financial data in the report refer to the “sec•tor” level and include items related to third parties andinter sectorial exchanges.
• Financial metrics were represented by considering allelectricity and gas sales as “non-eligible”.
• Revenues classified as eligible aligned also include intercompany revenues related to the sale of renewableelectricity produced by the Group’s generation companies and sold to the Group’s retail companies for marketing to end customers, according to the Group’s integrated position.
• Capex: they cover costs that are accounted based on
IFRS 16 Leases, paragraph 53, point (h), as requested by
the Commission Delegated Regulation (EU) 2021/2178.
• Absolute turnover/Capex/Opex/EBITDA correspond to
the turnover/Capex/Opex/EBITDA (measured in euros)of each specific activity. The share of individual KPIs
corresponds to each individual economic activity inthe total turnover/Capex/EBITDA of the Group (except
for Opex, as the total of which refers only to the type ofcosts required by the taxonomy).
• No Capex and Opex figures that may correspond to adaptation solutions – in accordance with Article 11 (1) (a)of EU taxonomy regulation – in business activities that
already contribute to climate mitigation have been allocated to climate adaptation objective, thus avoiding any
potential double counting with the figures provided on
climate mitigation objective. Furthermore, no revenues
were considered eligible for climate adaptation objective as Enel does not provide adaptation solutions inaccordance with Article 11 (1) (b) of EU taxonomy regulation.
• For those minor activities that are eligible for either theprotection and restoration of biodiversity and ecosystem or the circular economy objective a rounded figureof “0” has been reported due to its insignificant weightout of overall financial figures.

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Statement on the alignment of Enel’s business to the
EU taxonomy regulation
Overall results
The level of alignment of the Group’s economic activities
with the EU taxonomy regulation in 2023, made possible
mainly by their substantial contribution to the climatechange mitigation objective while respecting the principleof Do No Significant Harm (DNSH) to other environmental
objective and observing the minimum social safeguards,
is shown below.

EBITDA (ordinary) 2023
59.7% of ordinary EBITDA in 2023 relates to the businessactivities aligned to the EU taxonomy, compared to 56.7%
in 2022.
The EBITDA percentage of eligible taxonomy-aligned business activities increases in 2023 compared to 2022 mainly
thanks to an increase in the EBITDA of renewable energy
production and distribution activities in absolute terms. At
the same time, there is a decrease in the EBITDA of theeligible non-aligned activities due to the thermoelectric
power generation business from combined cycles, which
produced lower energy volumes in 2023 compared to2022.

Eligible aligned
Eligible non-aligned
Non-eligible

3.0%

37.3%

€22.0
billion

59.7%

TURNOVER “REVENUE” 2023
Eligible aligned
Eligible non-aligned
Non-eligible

33.8%

€98.2
billion(1)

62.1%
4.1%

(1)

In 2023 33.8% of revenues are related to business activitiesaligned to the EU taxonomy, compared to 21.4% in 2022.
In 2023, revenues decreased in absolute terms by 44.8 billion euros compared to 2022. The change is mainly attributable to the lower volumes of electricity produced, thelower quantities of energy sold in the wholesale and retailmarkets, as well as the decrease in average selling prices of commodities, thus impacting non-eligible and nonaligned activities.
At the same time, an increase in revenues related to the
production of energy from renewable sources was observed in 2023, resulting in an increase in absolute termsof revenues in aligned activities from 30.6 billion euros in2022 to 33.1 billion euros in 2023. These phenomena contributed to the increase in the percentage weight of revenues from EU taxonomy-aligned activities by 12% yearon-year.

Revenue refers to the ordinary income statement.

European Taxonomy 445

CAPEX 2023
84.8% of capital expenditure (Capex) in 2023 is related tobusiness activities aligned to the EU taxonomy, comparedto 81.9% in 2022. This increase is mainly due to higher investments in energy storage systems through BESS
(Battery Energy Storage Systems) and a reduction in investments in non-eligible or non-aligned thermoelectric
technologies.
The actual 2023 Capex for eligible aligned assets is 4.0%
higher than the Capex planned for 2023 in the Strategic
Plan 2023-2025 for the same assets. This change is mainly due to higher investments in absolute terms in eligiblealigned renewable and distribution activities than planned(approximately 1.9 billion euros).

Eligible aligned
Eligible non-aligned
Non-eligible

12.3%

€14.2

2.9%

billion(1)

84.8%

(1)

Also includes the increases in assets derivingfrom leasing operations (for 0.7 billion euros).

OPEX (ordinary) 2023
68.4% of operating expenses (Opex) in 2023 relate tobusiness activities aligned to the EU taxonomy, comparedto 66.9% in 2022.
The percentage of Opex of eligible taxonomy-aligned business activities increases in 2023 compared to 2022 mainly
due to higher maintenance costs incurred in photovoltaic
renewable energy production and taxonomy-aligned distribution activities.

Eligible aligned
Eligible non-aligned
Non-eligible

7.7%

23.9%

€1.3
billion(1)

68.4%
(1)

Only expenses required by the taxonomy.

446 Sustainability Report 2023

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Detailed results
The following tables are represented according to what isrequired by EU Regulation 852/2020, therefore consider-ing the activity of electricity sales as “non-eligible”.

EBITDA (ordinary)
DNSH criteria(“Do No Significant Harm”)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems(BIO)

Climate change
mitigation(CCM)

Climate change
adaptation(CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Proportion oftaxonomy- aligned (A.1)
or - eligible (A.2) ordinary
gross operating profit(EBITDA) 2022

Enabling activity

Transitional activity

millionsof euro

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

Minimum safeguards

Climate change
mitigation (CCM)

Category

Proportion of ordinary
gross operating profit(EBITDA) 2023

Substantial contribution criteria

Absolute ordinary grossoperating profit(EBITDA) 2023

Economic
activities

Taxonomy code

2023

A. Taxonomy-eligible
activities

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

1

Electricity generationfrom wind power

CCM
4.3

1,755

8.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

10.6

Electricity generation
using solar photovoltaic
technology

CCM
4.1

786

3.6

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

3.0

Electricity generationfrom hydropower

CCM
4.5

2,233

10.2

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

6.0

Electricity generationfrom geothermal energy

CCM
4.6

292

1.3

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

-0.7

Storage of electricity

CCM
4.10

82

0.4

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

Transmission anddistribution of electricity

CCM
4.9

7,632

34.7

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

36.3

E

Installation, maintenanceand repair of energy
efficiency equipment

CCM
7.3 d

110

0.5

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.5

E

(Enel X - Smart Lighting)
Urban and suburban
transport, roadpassenger transport

CCM
6.3 a

26

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.2

CCM
7.3 a-e7

0.0YN/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

195

0.9

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

1.0

E

(Enel X - e-Bus)
Installation, maintenanceand repair of energy
efficiency equipment(Enel X - Energy
Efficiency)

Installation,
maintenance and repairof energy efficiency
equipment (7.3)
Installation,
maintenance andrepair of instruments
and devices for
CCMmeasuring, regulation
7.3 a-e;and controlling energy
7.5 a;
performance of
7.6 abuildings (7.5)
Installation,
maintenance andrepairof renewable energy
technologies (7.6)(Enel X - Home/Vivi
Meglio Unifamiliare)

European Taxonomy

447

DNSH criteria(“Do No Significant Harm”)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems(BIO)

Climate change
mitigation(CCM)

Climate change
adaptation(CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Proportion oftaxonomy- aligned (A.1)
or - eligible (A.2) ordinary
gross operating profit(EBITDA) 2022

Enabling activity

Transitional activity

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

CCM 9.3

14

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

Installation, maintenanceand repair of energy
CCM 7.3
efficiency equipmenta-e(Enel X - Condomini)

99

0.5

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.2

E

1

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

-2

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

-0.6

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

-0.5

E

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

EBITDA ofenvironmentally
sustainable activities(taxonomy-aligned)(A.1)

13,098 59.7

59.7

0.0(1)

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

56.7

Of which enabling %

36.5

36.5

0.0

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

37.6

Of which transitional %

0.0

0.0

Economic
activities

Professional services
related to energy
performance ofbuildings

Minimum safeguards

Climate change
adaptation (CCA)

millionsof euroTaxonomy code

Climate change
mitigation (CCM)

Category

Proportion of ordinary
gross operating profit(EBITDA) 2023

Substantial contribution criteria

Absolute ordinary grossoperating profit(EBITDA) 2023

2023

A.1 ATTIVITÀ ECOSOSTENIBILI (ALLINEATE ALLA TASSONOMIA)(Enel X - Distributed
Energy)Installation,
maintenance and repairof energy efficiency
equipment (7.3)
Installation,
CCM 7.3
maintenance and repair d, e; 7.6 aof renewable energy
technologies (7.6)(Enel X - Distributed
Energy)Installation, maintenanceand repair of renewableenergy technologies(Enel X - Battery Energy
Storage)

CCM
7.6 f

Infrastructure for
personal mobility (6.13)
Installation, maintenanceand repair of charging
CCM
stations for electric-132
vehicles in buildings (and 6.13; 7.4
parking spaces attached
to buildings) (7.4)(e-Mobility)
Manufacture of
renewable energy
technologies

CCM 3.1

448 Sustainability Report 2023

0

0.0

E
T

5

DNSH criteria(“Do No Significant Harm”)

Climate change
mitigation(CCM)

Climate change
adaptation(CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Transitional activity

Biodiversity andecosystems
(BIO)

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

5

0.0

EL

N/EL N/EL N/EL N/EL N/EL

0.0

Transmission anddistribution of electricity(Peru and new
CCM 4.9 224
connections to plants
with threshold >100 gCO2eq/kWh)

1.0

EL

N/EL N/EL N/EL N/EL N/EL

2.9

Electricity generationfrom fossil gaseous
fuels (CCGT)

CCM
4.29

450

2.0

EL

N/EL N/EL N/EL N/EL N/EL

12.7

Sale of spare parts

CE 5.20

0.0

N/EL N/EL N/EL

N/EL N/EL

0.0

Conservation, including
restoration, of habitats, BIO 1.1
ecosystems and species00.0

N/EL N/EL N/EL N/EL N/EL

EL(2)

0.0

EBITDA of taxonomyeligible but notenvironmentally
sustainable activities(taxonomy-nonaligned activities) (A.2)

679

3.0

3.0

0.0

0.0

0.0

0.0

0.0

15.6

A.EBITDA oftaxonomy-eligible
activities (A.1 + A.2)

13,777 62.7

62.7

0.0

0.0

0.0

0.0

0.0

72.3

Taxonomy code

Pollution(PPC)

T

Circular economy(CE)E

Water and marine
resources (WTR)

%

Y; N;
N/EL

EL;
N/EL

Electricity generationfrom hydropower

CCM 4.5EL(2)AppendixCategory

Climate change
adaptation (CCA)%

Performance 2023

Climate change
mitigation (CCM)

Proportion of ordinary
gross operating profit(EBITDA) 2023

millionsof euro

4

Y; N;
N/EL

Economic
activities

A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLYSUSTAINABLE ACTIVITIES (TAXONOMY-NON-ALIGNED ACTIVITIES)Stakeholder engagement andmateriality analysis

Substantial contribution criteria

Absolute ordinary grossoperating profit(EBITDA) 2023

2023

3

Enabling activity

2
Enel’s commitment
to sustainable development

Proportion oftaxonomy- aligned (A.1)
or - eligible (A.2) ordinary
gross operating profit(EBITDA) 2022

Letter to stakeholders

Minimum safeguards

1

Y/N

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESB. Taxonomy-noneligible activities
Electricity generationfrom coal

n.a.

869

4.0

Electricity generationfrom nuclear

n.a.

511

2.3

Electricity generationfrom Oil&Gas (OCGT)(3)

n.a.

405

1.8

Enel X (only nonelegible activities)

n.a.

-60

-0.3

Trading activities(Energy sales wholesale)

n.a.

1,525

6.9

Market (Gas sales - end
customer)

n.a.

739

3.4

Market (Power sales end customer)

n.a.

4,125

18.8

European Taxonomy 449

B. TAXONOMY-NONELIGIBLE ACTIVITIESServices, Holding &Others

n.a.

-318

-1.4

Elisions andadjustments

n.a.

396

1.8

EBITDA of taxonomynon-eligible activities

8,192

37.3

Total (A + B)

21,969 100.0

Climate change
mitigation(CCM)

Climate change
adaptation(CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Transitional activity

Biodiversity andecosystems
(BIO)

Y; N;
N/EL

Enabling activity

Pollution
(PPC)

Y; N;
N/EL

Proportion oftaxonomy- aligned (A.1)
or - eligible (A.2) ordinary
gross operating profit(EBITDA) 2022

Circular economy
(CE)

Y; N;
N/EL

Minimum safeguards

Water and marine
resources (WTR)%

Climate change
adaptation (CCA)

millionsof euroCategory

Climate change
mitigation (CCM)

Proportion of ordinary
gross operating profit(EBITDA) 2023

Economic
activities

DNSH criteria(“Do No Significant Harm”)

Substantial contribution criteria

Absolute ordinary grossoperating profit(EBITDA) 2023

Taxonomy code

2023

%

E

T

PROPORTION OF EBITDA/TOTAL EBITDA
Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

CCM

59.7

62.7

CCA

0.0

0.0

WTR

0.0

0.0

CE

0.0

0.0

PPC

0.0

0.0

BIO

0.0

0.0

N/EL – non-eligible(1) No EBITDA figures were considered eligible for climate adaptation objective as Enel does not provide adaptation solutions in accordance with Article 11 (b)of EU taxonomy regulation.
(2) The analysis of the alignment of this activity was not performed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coherence with the timeline established in the Environmental Delegated Act.
(3) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.

450 Sustainability Report 2023

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Turnover “Revenue”(1)DNSH criteria(“Do No Significant Harm”)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion oftaxonomy-aligned (A.1)
or -eligible (A.2) turnover“revenue” 2022

Enabling activity

Transitional activity

Category

Proportion of turnover“revenue” 2023

Substantial contribution criteria

millionsof euro

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

Absolute turnover“revenue” 2023

Economic
activities

Taxonomy code

2023

A. Taxonomy-eligible
activities

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

1

Electricity generationfrom wind power

CCM
4.3

3,063

3.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

2.4

Electricity generation
using solar photovoltaic
technology

CCM
4.1

1,084

1.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.7

Electricity generationfrom hydropower

CCM
4.5

6,774

6.9

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

3.0

Electricity generationfrom geothermalenergy

CCM
4.6

555

0.6

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.4

Storage of electricity

CCM
4.10

72

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

CCM
4.9

19,915

20.3

YN/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

13.9

E

CCM
7.3 d

313

0.3

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.2

E

CCM
6.3 a

87

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

CCM
7.3 a-e

53

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

442

0.5

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.3

E

Transmission anddistribution ofelectricity
Installation,
maintenance andrepair of energy
efficiency equipment(Enel X - Smart Lighting)
Urban and suburban
transport, roadpassenger transport(Enel X - e-Bus)
Installation,
maintenance andrepair of energy
efficiency equipment(Enel X - Energy
Efficiency)

Installation,
maintenance and repairof energy efficiency
equipment (7.3)
Installation,
maintenance andrepair of instruments
and devices for
CCMmeasuring, regulation
7.3 a-e;and controlling energy
7.5 a;
performance of
7.6 abuildings (7.5)
Installation,
maintenance and repairof renewable energy
technologies (7.6)(Enel X - Home/Vivi
Meglio Unifamiliare)

European Taxonomy

451

DNSH criteria(“Do No Significant Harm”)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion oftaxonomy-aligned (A.1)
or -eligible (A.2) turnover“revenue” 2022

Enabling activity

Transitional activity

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

CCM
9.3

66

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

Installation, maintenanceand repair of energy
CCM
efficiency equipment
7.3 a-e(Enel X - Condomini)

245

0.2

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

131

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

27

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

246

0.3

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

0.0

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

Economic
activities

Professional services
related to energy
performance ofbuildings

Absolute turnover“revenue” 2023
millionsof euroTaxonomy code

Climate change
adaptation (CCA)

Category

Climate change
mitigation (CCM)

Substantial contribution criteria

Proportion of turnover“revenue” 2023

2023

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)(Enel X - Distributed
Energy)452

Installation, maintenanceand repair of energy
efficiency equipment (7.3)
Installation, maintenance CCM
and repair of renewable 7.3 d, e;energy technologies (7.6) 7.6 a(Enel X - Distributed
Energy)Installation, maintenanceand repair of renewableenergy technologies(Enel X - Battery Energy
Storage)

CCM
7.6 f

Infrastructure for
personal mobility (6.13)
Installation, maintenanceand repair of charging
CCM
stations for electricvehicles in buildings (and 6.13; 7.4
parking spaces attached
to buildings) (7.4)(e-Mobility)
Manufacture of
renewable energy
technologies

CCM
3.1

Turnover ofenvironmentally
sustainable activities(taxonomy-aligned)(A.1)

33,073 33.8

Of which enabling %Of which transitional %Sustainability Report 2023

33.8 0.0(2)

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

21.4

22.0

22.0

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

14.8

0.0

0.0

0.0

0.0

E
T

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLYSUSTAINABLE ACTIVITIES (TAXONOMY-NON-ALIGNED ACTIVITIES)

4

Performance 2023

5

DNSH criteria(“Do No Significant Harm”)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion oftaxonomy-aligned (A.1)
or -eligible (A.2) turnover“revenue” 2022

Enabling activity

Transitional activity

Category

Climate change
adaptation (CCA)

Substantial contribution criteria

Appendix

Climate change
mitigation (CCM)

millionsof euroStakeholder engagement andmateriality analysis

Proportion of turnover“revenue” 2023

Economic
activities

Absolute turnover“revenue” 2023

Taxonomy code

2023

3

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

%

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

Electricity generationfrom hydropower

CCM
4.5

50

0.1

EL

N/EL N/EL N/EL N/EL N/EL

0.0

Transmission anddistribution of electricity(Peru and newconnections to plants
with threshold >100 gCO2eq/kWh)

CCM
4.9

934

1.0

EL

N/EL N/EL N/EL N/EL N/EL

1.3

Electricity generationfrom fossil gaseous
fuels (CCGT)

CCM
4.29

2,984

3.0

EL

N/EL N/EL N/EL N/EL N/EL

6.6

Sale of spare parts

CE
5.2

0.0

0.0

N/EL N/EL N/EL

Conservation, including
restoration, of habitats,ecosystems and species

BIO
1.1

0.0

0.0

N/EL N/EL N/EL N/EL N/EL

EL(3)

0.0

Turnover of taxonomyeligible but notenvironmentally
sustainable activities(taxonomy-nonaligned activities) (A.2)

3,968

4.1

4.1

0.0

0.0

0.0

0.0

0.0

7.9

A. Turnover oftaxonomy-eligible
activities (A.1 + A.2)

37,041 37.9

37.9

0.0

0.0

0.0

0.0

0.0

29.3

EL(3)

N/EL N/EL

0.0

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESB. Taxonomy-noneligible activities
Electricity generationfrom coal

n.a.

2,884

2.9

Electricity generationfrom nuclear

n.a.

1,455

1.5

Electricity generationfrom Oil&Gas (OCGT)(4)

n.a.

3,483

3.4

Enel X (only nonelegible activities)

n.a.

559

0.5

Trading activities(Energy sales wholesale)n.a.

29,407 30.0

Market (Gas sales - end
customer)

n.a.

8,794

Market (Power sales end customer)n.a.

40,930 41.7

9.0

European Taxonomy 453

B. TAXONOMY-NONELIGIBLE ACTIVITIESDNSH criteria(“Do No Significant Harm”)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion oftaxonomy-aligned (A.1)
or -eligible (A.2) turnover“revenue” 2022

Enabling activity

Transitional activity

Category

Climate change
mitigation (CCM)

Substantial contribution criteria

Proportion of turnover“revenue” 2023

Economic
activities

millionsof euro

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

2.1

Absolute turnover“revenue” 2023

Taxonomy code2023

Services, Holding &Others

n.a.

2,058

Elisions andadjustments

n.a.

-28,448 -29.0

Turnover of taxonomynon-eligible activities

61,122 62.1

Total (A + B)

98,163 100.0

PROPORTION OF TURNOVER/TOTAL TURNOVER
Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

CCM

33.8

37.9

CCA

0.0

0.0

WTR

0.0

0.0

CE

0.0

0.0

PPC

0.0

0.0

BIO

0.0

0.0

N/EL – non-eligible(1) Revenue refers to the ordinary income statement.
(2) No revenues figures were considered eligible for climate adaptation objective as Enel does not provide adaptation solutions in accordance with Article 11 (b)of EU taxonomy regulation.
(3) The analysis of the alignment of this activity was not performed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coherence with the timeline established in the Environmental Delegated Act.
(4) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.

454 Sustainability Report 2023

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Capex
DNSH criteria(”Do No Significant Harm”)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Transitional activity

Climate change
adaptation (CCA)
Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

14.7

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

18.9

3.2

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

2.9

1.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.8

9.3

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

3.5

E

37.7

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

34.7

E

0.9

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.5

E

0.1

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

13

0.1

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

71

0.5

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.5

E

Circular economy
(CE)

Y/N

Water and marine
resources (WTR)

Y; N;
N/EL

Climate change
adaptation (CCA)

Y; N;
N/EL

millionsof euroClimate change
mitigation (CCM)

Climate change
mitigation (CCM)

T

Biodiversity andecosystems (BIO)

E

Pollution(PPC)

Enabling activity

Category
Proportion of taxonomy-aligned (A.1) or -eligible(A.2) Capex “Capital
expenditure” 2022

Substantial contribution criteria

Proportion of Capex“Capital expenditure”
2023

Absolute Capex “Capital
expenditure” 2023

Economic
activities

Taxonomy code

2023

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

7.9

Y

16.8

A. Taxonomy-eligible
activities
CCM
4.3 /
1,125
CCA
4.3
CCM
Electricity generation
4.1 /
2,400
using solar photovoltaic
CCA
technology
4.1
CCM
Electricity generation
4.5 /
463
from hydropower
CCA
4.5
CCM
Electricity generation
4.6 /
136
from geothermal energy
CCA 4.6
CCM
4.10 /
1,322
Storage of electricity
CCA
4.10
Transmission andCCM
distribution of
4.9 /
5,376
electricity
CCA 4.9
Installation, maintenance CCM
and repair of energy
7.3 d /
130
efficiency equipment
CCA
7.3
d
(Enel X - Smart Lighting)
Urban and suburban
CCM
transport, road
6.3 a
8
passenger transport
/ CCA
6.3 a
(Enel X - e-Bus)

Electricity generationfrom wind power

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

1

Installation,
maintenance andrepair of energy
efficiency equipment

CCM
7.3 a-e /CCA
7.3 a-e(Enel X - Energy
Efficiency)
Installation,
maintenance and repairof energy efficiency
equipment (7.3)
Installation,
maintenance andCCM
repair of instruments
7.3 a-e;and devices for
7.5 a;
measuring, regulation
7.6 a /and controlling energy
CCA
performance of
7.3 a-e;buildings (7.5)
7.5 a;
Installation,
7.6 amaintenance and repairof renewable energy
technologies (7.6)(Enel X - Home/Vivi
Meglio Unifamiliare)

European Taxonomy 455

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Enabling activity

Transitional activity

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) Capex “Capital
expenditure” 2022

Water and marine
resources (WTR)

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

4

0.0

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

17

0.1

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.2

E

59

0.4

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

44

0.3

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.4

E

106

0.7

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.7

E

CCM
3.1 /
CCA
3.1

337

2.4

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

1.1

E

n.a.

486

3.4

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

2.8

84.8 0.0(1)

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

81.9

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

41.8

Taxonomy code

Climate change
adaptation (CCA)

Proportion of Capex“Capital expenditure”
2023

Category

Climate change
mitigation (CCM)

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)DNSH criteria(”Do No Significant Harm”)

Substantial contribution criteria

millionsof euroEconomic
activities

Professional services
related to energy
performance ofbuildings

Absolute Capex “Capital
expenditure” 2023

2023

CCM
9.3

(Enel X - Distributed
Energy)Installation, maintenance CCM
and repair of energy
7.3 a-e /efficiency equipment
CCA
7.3 a-e(Enel X - Condomini)
Installation,
maintenance and repair
CCM
of energy efficiency
7.3 d,
equipment (7.3)
Installation, maintenance e; 7.6 aand repair of renewable / CCA
energy technologies (7.6) 7.3 d, e;
7.6 a(Enel X - Distributed
Energy)Installation, maintenanceCCM
and repair of renewable
7.6 f /
energy technologies
CCA(Enel X - Battery Energy
7.6 f
Storage)
Infrastructure for
personal mobility (6.13)
Installation, maintenance CCM
and repair of charging
6.13; 7.4
stations for electric/ CCA
vehicles in buildings (and 6.13;
parking spaces attached
7.4
to buildings) (7.4)(e-Mobility)
Manufacture of
renewable energy
technologies
Additions to right-ofuse assets (IFRS 16 par.
53 point h)Capex ofenvironmentally
sustainable activities(taxonomy-aligned)(A.1)

12,097 84.8

Of which enabling %

52.4

52.4

Of which transitional %

0.0

0.0

456 Sustainability Report 2023

0.0

0.0

E
T

Performance 2023

DNSH criteria(”Do No Significant Harm”)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

%

4

0.0

EL

EL

N/EL N/EL N/EL N/EL

0.0

Transmission anddistribution of electricity
CCM(Peru and new
4.9 /connections to plants
CCA 4.9
with threshold >100 gCO2eq/kWh)

123

0.9

EL

EL

N/EL N/EL N/EL N/EL

2.6

Electricity generationfrom fossil gaseous
fuels (CCGT)

CCM
4.29 /
CCA
4.29

269

1.9

EL

EL

N/EL N/EL N/EL N/EL

2.6

Additions to right-ofuse assets (IFRS 16 par.
53 point h)

n.a.

19

0.1

EL

EL

N/EL N/EL N/EL N/EL

1.1

Sale of spare parts

CE
5.2

0

0.0

N/EL N/EL N/EL

Conservation, including
restoration, of habitats,ecosystems and species

BIO
1.1

0

0.0

N/EL N/EL N/EL N/EL N/EL

EL(2)

0.0

Capex of taxonomy-eligible but notenvironmentally
sustainable activities(taxonomy-nonaligned activities) (A.2)

415

2.9

2.9

0.0

0.0

0.0

0.0

0.0

6.3

A. Capex of taxonomyeligible activities(A.1 + A.2)

12,512 87.7

87.7

0.0

0.0

0.0

0.0

0.0

88.2

EL(2)

N/EL N/EL

AppendixCategory

Y; N;
N/EL

%

5

CCM
4.5 /
CCA 4.5

Electricity generationfrom hydropower

A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLYSUSTAINABLE ACTIVITIES (TAXONOMY-NON-ALIGNED ACTIVITIES)

4

Climate change
mitigation (CCM)

millionsof euroStakeholder engagement andmateriality analysis

Substantial contribution criteria

Proportion of Capex“Capital expenditure”
2023

Economic
activities

Absolute Capex “Capital
expenditure” 2023

Taxonomy code

2023

3

Transitional activity

2
Enel’s commitment
to sustainable development

Enabling activity

Letter to stakeholders

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) Capex “Capital
expenditure” 2022

1

E

T

0.0

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESB. Taxonomy-noneligible activities
Electricity generationfrom coal

n.a.

52

0.4

Electricity generationfrom nuclear

n.a.

171

1.2

Electricity generationfrom Oil&Gas (OCGT)(3)

n.a.

209

1.5

Enel X (only nonelegible activities)

n.a.

103

0.7

Trading activities(Energy sales wholesale)

n.a.

58

0.4

European Taxonomy457

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESDNSH criteria(”Do No Significant Harm”)

Market (Gas sales - end
customer)

n.a.

106

0.7

Market (Power sales end customer)

n.a.

512

3.6

Services, Holding &Others

n.a.

193

1.4

Elisions andadjustments

n.a.

152

1.1

Additions to right-ofuse assets (IFRS 16 par.
53 point h)

n.a.

179

1.3

Capex of taxonomynon-eligible activities

1,735 12.3

Total (A + B)

14,247 100.0

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

Transitional activity

Pollution
(PPC)

Y; N;
N/EL

Enabling activity

Circular economy
(CE)

Y; N;
N/EL

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) Capex “Capital
expenditure” 2022

Water and marine
resources (WTR)%

Climate change
adaptation (CCA)

millionsof euroCategory

Climate change
mitigation (CCM)

Substantial contribution criteria

Proportion of Capex“Capital expenditure”
2023

Economic
activities

Absolute Capex “Capital
expenditure” 2023

Taxonomy code

2023

E

T

PROPORTION OF CAPEX/TOTAL CAPEX

CCM

Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

84.8

87.7

CCA

0.0

87.7

WTR

0.0

0.0

CE

0.0

0.0

PPC

0.0

0.0

BIO

0.0

0.0

N/EL – non-eligible(1) No Capex figures that may correspond to adaptation solutions – in accordance with Article 11 (1) (b) of EU taxonomy regulation – in business activities that
already contribute to climate mitigation have been allocated to climate adaptation objective, thus avoiding any potential double counting with the figures
provided on climate mitigation objective.
(2) The analysis of the alignment of this activity was not performed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coherence with the timeline established in the Environmental Delegated Act.
(3) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.

458 Sustainability Report 2023

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Opex (ordinary)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) ordinary Opex 2022

Enabling activity

Transitional activity

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

7.2

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

3.9

12.1

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

12.9

0.4

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.4

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

44.2

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

41.8

E

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

0.1

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

0.1

Y

N/EL N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

Circular economy
(CE)

Y/N

Water and marine
resources (WTR)

Y; N;
N/EL

Climate change
adaptation (CCA)

Pollution(PPC)

Category

Y; N;
N/EL

Climate change
mitigation (CCM)

millionsof euroDNSH Criteria(“Do No Significant Harm”)

Substantial contribution criteria

Proportion of ordinary
Opex 2023

Absolute ordinary
Opex 2023

Economic
activities

Taxonomy code

2023

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

6.8

Y

4.5

A. Taxonomy-eligible
activities
CCM 4.3
/ CCA
86
4.3
Electricity generation
CCM 4.1
using solar photovoltaic / CCA
57
technology
4.1
CCM 4.5
Electricity generation
/ CCA
153
from hydropower
4.5
CCM 4.6
Electricity generation/ CCA
5from geothermal energy
4.6
CCM
4.10 /
Storage of electricity
0
CCA
4.10
Transmission and
CCM 4.9
distribution of
/ CCA
559
electricity
4.9
Installation, maintenance
CCM 7.3
and repair of energy
d / CCA0efficiency equipment
7.3 d(Enel X - Smart Lighting)
Urban and suburban
CCM 6.3transport, roada / CCA0passenger transport
6.3 a(Enel X - e-Bus)
Installation,
maintenance andCCM
repair of energy
7.3 a-e /0efficiency equipment
CCA 7.3
a-e(Enel X - Energy
Efficiency)
Installation,
maintenance and repairof energy efficiency
equipment (7.3)
Installation,
maintenance andCCM 7.3
repair of instrumentsa-e; 7.5
and devices fora; 7.6 a /measuring, regulation1and controlling energy CCA 7.3
a-e; 7.5
performance ofa; 7.6 abuildings (7.5)

Electricity generationfrom wind power

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)

1

Installation, maintenanceand repair of renewableenergy technologies (7.6)(Enel X - Home/Vivi
Meglio Unifamiliare)
Professional services
related to energy
performance ofbuildings

CCM 9.3

1(Enel X - Distributed
Energy)European Taxonomy 459

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) ordinary Opex 2022

Enabling activity

Transitional activity

Y/N

Y/N

Y/N

%

E

T

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.1

E

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

2

0.2

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.3

E

0

0.0

Y

Y

N/EL N/EL N/EL N/EL

Y

Y

Y

Y

Y

Y

Y

0.0

E

864

68.4 68.4 0.0(1)

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

66.9

Of which enabling %

44.6

44.6

0.0

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

Y

42.5

Of which transitional %

0.0

0.0

CCM
7.3 a-e /CCA 7.3
a-e(Enel X - Condomini)
Installation,
maintenance and repairof energy efficiency
CCM 7.3
equipment (7.3)
d, e; 7.6
Installation,
maintenance and repair a / CCA
7.3 d, e;of renewable energy
7.6 atechnologies (7.6)(Enel X - Distributed
Energy)Installation,
maintenance andrepair of renewableenergy technologies(Enel X - Battery Energy
Storage)

CCM 7.6
f / CCA
7.6 f

Infrastructure for
personal mobility (6.13)
Installation,
maintenance and repair CCM
of charging stations
6.13; 7.4
for electric vehicles in/ CCA
buildings (and parking
6.13; 7.4
spaces attached tobuildings) (7.4)

millionsof euro

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

0

0.0

Y

0

0.0

0

Absolute ordinary
Opex 2023

Circular economy
(CE)

Y/N

Water and marine
resources (WTR)

Y/N

Climate change
adaptation (CCA)Y/N

Climate change
mitigation (CCM)

Y/N

Installation,
maintenance andrepair of energy
efficiency equipment

Proportion of ordinary
Opex 2023

Y; N;
N/EL

Taxonomy code

Biodiversity andecosystems (BIO)

Category

Y; N;
N/EL

Economic
activities

A.1 ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)DNSH Criteria(“Do No Significant Harm”)

Substantial contribution criteria

Pollution
(PPC)

2023

(e-Mobility)
Manufacture of
renewable energy
technologies
Opex ofenvironmentally
sustainable activities(taxonomy-aligned)(A.1)

CCM 3.1/ CCA
3.1

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A.2 TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY SUSTAINABLE
ACTIVITIES (TAXONOMY-NON-ALIGNED ACTIVITIES)

4

Performance 2023

5

DNSH Criteria(“Do No Significant Harm”)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) ordinary Opex 2022

Enabling activity

Transitional activity

Category

Climate change
adaptation (CCA)

Substantial contribution criteria

Appendix

Climate change
mitigation (CCM)

millionsof euroStakeholder engagement andmateriality analysis

Proportion of ordinary
Opex 2023

Economic
activities

Absolute ordinary
Opex 2023

Taxonomy code

2023

3

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

%

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

EL;
N/EL

Electricity generationfrom hydropower

CCM 4.5
/ CCA
4.5

1

0.1

EL

EL

N/EL N/EL N/EL N/EL

0.0

Transmission anddistribution ofelectricity (Peru andnew connections toplants with threshold>100 gCO2eq/kWh)

CCM 4.9
/ CCA
4.9

10

0.8

EL

EL

N/EL N/EL N/EL N/EL

3.9

Electricity generationfrom fossil gaseous
fuels (CCGT)

CCM
4.29 /
CCA
4.29

86

6.8

EL

EL

N/EL N/EL N/EL N/EL

8.9

Sale of spare parts

CE 5.20

0.0

N/AM N/AM N/EL

Conservation, including
restoration, of habitats,BIO 1.1
ecosystems andspecies00.0

N/AM N/AM N/EL N/EL N/EL

EL(2)

0.0

Opex of taxonomyeligible but notenvironmentally
sustainable activities(taxonomy-nonaligned activities) (A.2)

97

7.7

7.7

0.0

0.0

0.0

0.0

0.0

12.8

A.Opex of taxonomyeligible activities(A.1 + A.2)

961

76.1

76.1

0.0

0.0

0.0

0.0

0.0

79.7

EL(2)

N/EL N/EL

0.0

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESB. Taxonomy-noneligible activities
Electricity generationfrom coal

n.a.

48

3.8

Electricity generationfrom nuclear

n.a.

80

6.3

Electricity generationfrom Oil&Gas (OCGT)(3)

n.a.

101

8.0

Enel X (only nonelegible activities)

n.a.

4

0.3

Trading activities(Energy sales wholesale)

n.a.

4

0.3

Market (Gas sales end customer)

n.a.

3

0.2

European Taxonomy461

B. TAXONOMY-NONELIGIBLE ACTIVITIESDNSH Criteria(“Do No Significant Harm”)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Climate change
mitigation (CCM)

Climate change
adaptation (CCA)

Water and marine
resources (WTR)

Circular economy(CE)

Pollution(PPC)

Biodiversity andecosystems (BIO)

Minimum
safeguards

Proportion of taxonomy-aligned (A.1) or -eligible(A.2) ordinary Opex 2022

Enabling activity

Transitional activity

Category

Climate change
mitigation (CCM)

Substantial contribution criteria

Proportion of ordinary
Opex 2023

Economic
activities

millionsof euro

%

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y; N;
N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

Absolute ordinary
Opex 2023

Taxonomy code

2023

Market (Power sales end customer)

n.a.

14

1.1

Services, Holding &Others

n.a.

50

4.0

Elisions andadjustments

n.a.

-1

-0.1

Opex of taxonomynon-eligible activities

303

23.9

Total (A + B)

1,264 100.0

PROPORTION OF OPEX/TOTAL OPEX
Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

CCM

68.4

76.1

CCA

0.0

76.0

WTR

0.0

0.0

CE

0.0

0.0

PPC

0.0

0.0

BIO

0.0

0.0

N/EL – non-eligible(1) No Opex figures that may correspond to adaptation solutions – in accordance with Article 11 (1) (a) of EU taxonomy regulation – in business activities that
already contribute to climate mitigation have been allocated to climate adaptation objective, thus avoiding any potential double counting with the figures
provided on climate mitigation objective.
(2) The analysis of the alignment of this activity was not performed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coherence with the timeline established in the Environmental Delegated Act.
(3) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.

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Appendix

Additional information on electricity generation from nuclear
and gas activities
The following figures are reported in accordance with
the Commission Delegated Regulation (EU) 2022/1214
of 9 March 2022 amending Delegated Regulation (EU)2021/2139 as regards economic activities in certain en-ergy sectors and Delegated Regulation (EU) 2021/2178 as
regards specific public disclosures for those economic
activities.

Template 1 - Nuclear and fossil gas related activities
Nuclear energy related activities

1

The undertaking carries out, funds or has exposures to research, development, demonstrationand deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.

No

2

The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades, using
best available technologies.

No

3

The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.

Yes

Fossil gas related activities
4

The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.

Yes

5

The undertaking carries out, funds or has exposures to construction, refurbishment, and operationof combined heat/cool and power generation facilities using fossil gaseous fuels.

No

6

The undertaking carries out, funds or has exposures to construction, refurbishment and operationof heat generation facilities that produce heat/cool using fossil gaseous fuels.

No

As shown in the table above, the only applicable activities
for Enel concern the safe operation of existing nuclear
plants and the operation of power generation plants using
gaseous fossil fuels. The former activity is 100% non-eligible, while the latter is 100% eligible non-aligned. Accordingly, the following tables refer to templates 4 and 5

included in the annexes to the Complementary DelegatedAct. The remaining templates included in that Delegated
Act are not applicable to Enel’s business model. Furthermore, the information only refers to the climate change
mitigation objective, as it is the prevailing objective for theGroup.

European Taxonomy 463

Modello
ività economiche but
ammissibili
alla tassonomia economic
ma non allineate
alla tassonomia
Template44– -Att
Taxonomy-eligible
not taxonomy-aligned
activities
EBITDA (ordinary)
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI

450

2.0

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

229

1.0

Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI

679

3.0

Turnover
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI

2,984

3.0

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in the denominator of theapplicable KPI

984

1.0

3,968

4.0

Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI

Capex
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI

269

1.9

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

146

1.0

Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI

415

2.9

Opex (ordinary)
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI

86

6.8

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

11

0.9

Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI

97

7.7

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Template
Template 55 --Taxonomy
Taxonomynon-eligible
non-eligibleeconomic
economicactivities
activities
EBITDA (ordinary)
Climate change mitigation
Economic activities

Amount in millions of euro

%

511

2.3

Amount and proportion of other taxonomy-non-eligible economic activities notreferred to in rows 1 to 6 above in the denominator of the applicable KPI

7,681

35.0

Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI

8,192

37.3

Amount and proportion of economic activity referred to in row 3 of Template 1 thatis taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI

Turnover
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 thatis taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI

1,455

1.5

Amount and proportion of other taxonomy-non-eligible economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI

59,667

60.8

Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI

61,122

62.3

Capex
Climate change mitigation
Economic activities

Amount in millions of euro

%

171

1.2

Amount and proportion of other taxonomy-non-eligible economic activities notreferred to in rows 1 to 6 above in the denominator of the applicable KPI

1,564

11.0

Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI

1,735

12.2

Amount and proportion of economic activity referred to in row 3 of Template 1 thatis taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPIOpex (ordinary)
Climate change mitigation
Economic activities

Amount in millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 thatis taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI

80

6.3

Amount and proportion of other taxonomy-non-eligible economic activities notreferred to in rows 1 to 6 above in the denominator of the applicable KPI

223

17.6

Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI

303

23.9

European Taxonomy 465

INDEPENDENTAUDITORS’REPORT

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Appendix467

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4

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Appendix

469

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471

GREEN BOND REPORT2023 – SUPPORTINGNOTESIntroduction and reporting criteria
Enel Finance International NV, the Group’s financial company controlled by Enel SpA, placed three Green Bonds on
the European market in January 2017 (1.25 billion euros),2018 (1.25 billion euros) and 2019 (1 billion euros) for a totalof 3.50 billion euros. Issued as part of Enel and Enel Finance International’s Euro Medium-Term Note Programme(EMTN Programme), the Green Bonds are targeted at institutional investors and guaranteed by Enel SpA. The net
proceeds of the issue were used to finance or refinanceprojects in the categories identified in line with the “Green
Bond Principles” published by ICMA (International CapitalMarket Association). In particular, the proceeds were used
to finance:• new projects for the development, construction and repowering of generation plants from renewable sources(Green Bond emission in 2017 and 2019);• new projects for the development, construction, repowering and refinancing of generation plants fromrenewable sources as well as projects for transmission, networks and smart grids (Green Bond emission
in 2018).
In this regard, it should be noted that during 2023 it became necessary to reallocate proceeds totaling 229.60
million euros, following the Group’s deconsolidation of
three projects(1): the reallocation took place to two renewable projects, Seven Cowboy (USA) for 174.22 million euros
and Alta Farms II for 55.38 million euros(2).
In order to facilitate the transparency and quality of theGreen Bonds issued, the Enel Group has prepared andpublished specific “Green Bond Frameworks” for eachyear of emission, whose compliance with the reference
principles has been confirmed by an external advisor, Vigeo Eiris (now Moody’s Investors Service), which issued theso-called “Second Party Opinion”. Within the frameworks,
the categories relating to eligible projects are aligned with
the Sustainable Development Goals of the United Nations(UN SDG), in particular Goals 7, 9, 11 and 13(3).
(1)

The reference documents for the three emissions areavailable on the Enel Group’s website (https://www.enel.
com/investors/investing/sustainable-finance/greenbonds).
The Enel Group is among the first companies in the world
having set up a “Green Bond Committee” with the aim of
selecting projects and monitoring the progress of theirdevelopment. The reporting document hereof, published
for the seventh time in 2023, meets Enel’s commitment
undertaken at the time of the bond issuance to report annually on the use of proceeds, on the environmental benefits deriving from the projects financed and on further ESG
metrics linked to these projects.
The indicators were determined in accordance with the“Green Bond Framework” (December 2016, December
2017 and November 2018) principles and shown in the table based on the type of project and the specific year ofemission of the Green Bonds. Furthermore, all of the planttechnologies as well as Grids activities in Italy for which
the proceeds of the Green Bonds issued in 2017, 2018and 2019 were allocated are to be considered eligible andaligned activities according to European taxonomy (European Regulation 2020/852). In order to improve transparency and facilitate understanding of reporting over theyears, the report also provides the following information:• 2017 Green Bond reporting with evidence of projects
relating to renewable plants. Seven plants also contribute toward the allocation of the proceeds of the 2019
Green Bond following new investments (Capex) thatwere made;• 2018 Green Bond reporting with evidence of projects
related to:– renewable plants, three of which contribute toward
the allocation of the proceeds of the 2019 Green Bond
due to new investments (Capex) that were made;– “refinancing” of renewable plants due to the replacement of previous credit lines;

Cremzow (Germany) for -9.24 million euros on Green Bond 2018; Kafireas (Greece) for -63.50 million euros on Green Bond 2018 and -125.93 million euros
on Green Bond 2019, for a total of -189.43 million euros; Cohuna (Australia) for -30.93 million euros on Green Bond 2019.
(2) Seven Cowboy (USA) for 72.74 million euros on Green Bond 2018; Seven Cowboy (USA) for 101.48 million euros and Alta Farms II (USA) for 55.38 million euros
on Green Bond 2019, for a total of 156.86 million euros.
(3) SDG 7 “Affordable and clean energy”; SDG 9 “Industry, innovation and infrastructure”; SDG 11 “Sustainable cities and communities”; SDG 13 “Climate action”.

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“Enel Grids”;
2019 Green Bond reporting with evidence of the projects relating to renewable plants, 10 of which werealso subject to reporting for the 2017 and 2018 Green
Bonds, as described previously.

Finally, in agreement with what is required by the cited
Green Bond Framework, this document consists of thefollowing indicated below.

• Summary table of 2017, 2018 and 2019 emissions withindication of the installed capacity and the cumulative
CO2 avoided for all years of Green Bond reporting.

• Table A “Financial indicators”, which reports:– the capacity and amount of the “foreign currency in-vestment” approved by the Board of Directors and/or the Investment Committee, and communicated to
the financial market through specific press releases;– the value of the “investment in euros”, calculated byconsidering the average exchange rate for the years
2017-2019 (for projects defined in 2017), the averageexchange rate for the years 2018-2020 (for projects
defined in 2018) and/or the average exchange rate
for the years 2019-2021 (for projects defined in 2019)of Enel’s Industrial Plan;– the share of the Green Bond proceeds allocated tothe project as the difference between the total capitalized costs as at December 31, 2017, December 31,
2018 and/or December 31, 2019 and the amount of
third-party financing associated to the specific project(4). The amounts of proceeds allocated to the projects in 2017, 2018 and 2019 respectively were used in
the same years;– the date of entry into operation corresponding to thetime when the plant produced the first kWh. In thisregard, it should be noted that all of the plants associated with the three Green Bonds have entered into
operation.
• Table B “ESG indicators” which shows the environmental benefit in terms of actual CO2 avoided. In particular,
with reference to:renewable projects:– the quantity of effective generation (with the excep-

4

Performance 2023

5

Appendixtion of the repowering plants whose share of generation cannot be separated from the rest of the plant);– the quantity of actual CO2 avoided determined bymultiplying the effective generation by the emission
factor linked to the specific thermoelectric power
generation of the country in which the plant is located (emission factors source: Enerdata - February 22,2024 release);– the cumulative value of effective generation and therelative CO2 avoided for the entire years of Green
Bond reporting;Enel Grids projects, the following indicators are also
provided:– the cabling ratio, determined by the ratio between
the length of the cable lines and the total length ofthe lines. The increase in this index over time is due toan increase in the length of the overhead and underground cable line to the detriment of bare conductors; in particular, the main environmental benefits
concern the containment of plant cutting activities
and a drastic reduction in the risk of electrocution
and collision for birds;– network automation, which corresponds to the ratio
between RCP (Remote Controlled Point) and medium/low-voltage equipment;– technical network losses, mainly related to the characteristics/functions of the network. These losses are usually calculated using statistical models or
benchmarks. A reduction in technical network losses
results in a reduction in the energy to be generated
and a consequent reduction in emissions and consumption of raw materials;– the elimination of oil equipment with PCB reduces
the risk of contamination of a compound no longer inproduction since the 1980s and classified as ecotoxic
and bioaccumulable;– energy savings are represented in terms of “energy saved” in MWh in place of the CO2 avoided (t) to
specifically report the improvement in efficiency obtained thanks to the use of so-called “in ecodesign”
transformers and the optimization of MV grids as thedifference between losses detected before and after
these interventions.

(4) If the same company is involved with the implementation of several projects, the allocation of the Green Bond quota to the specific project was done using
capacity as a driver.

Green Bond Report 2023 – supporting notes473

• Table C “Further ESG indicators” which shows, whereindicator related to the number of beneficiaries ofthese projects refers to the people involved by suchactivity or project.
The above indicators in Table C, with the exception ofwater consumption and plant shutdown due to environmental issues, also refer to Enel Grids projects.

possible and appropriate(5), as envisaged in the “second
party opinion”(6), the following indicators for the renewable projects:– water consumption related to data reported for theplants in only the period following their entry into
operation (from the moment there are no plants
financed by the Green Bonds with the “under construction” status);– projects for protecting biodiversity promoted by Enelin connection to the operation of the plant;– the cases in which the site stopped its operations(plant shutdown) due to environmental management
issues and their impact;– fatalities or high consequence (“Life Changing”(7)) injuries to Enel people;– activities and projects carried out to support local
communities in the areas surrounding the plant. The• Table D “Overall information” which provides the crite-

ria, indicators, overall information and approach chosen
by Enel to develop the projects financed through theproceeds of the bond.
The data have been thoroughly calculated on the basis of the results of Enel’s accounting, non-accounting
and other information systems, and validated by the
persons responsible in each case. The data determinedthrough the use of estimates and related calculation
method has been expressly indicated.

SUMMARY TABLE OF 2017, 2018 AND 2019 EMISSIONS WITH INDICATION OF THE INSTALLEDCAPACITY AND THE CO2 AVOIDED
Green Bond (GB) emission

Area ofinvestment

GB proceeds
allocated(mil euros)

Installed capacity(MW)

Cumulative CO2
avoided(1)
(t)

2017

Renewables

1,238

3,355

30,903,910

2018

1,240

2,004

12,884,324

of which new renewable projects

Renewables

502

1,702

12,429,886

of which new Enel Grids projects

I&N

666

n.a.

-

of which new renewable projects
identified in 2023

Renewables

73

302

454,438986

1,099(2)3,818,618

33

597

3,601,219

2019
of which new projects identified in 2019

Renewablesof which new Capex for 2018 projects

Renewables

216

n.a.

-

of which new Capex for 2017 projects

Renewables

579

n.a.

-

of which new renewable projects
identified in 2023

Renewables

157

502(2)

217,399(1)

For Enel Grids projects, energy savings are represented in terms of “Energy saved” (MWh) in place of the CO2 avoided (t) to specifically report the improvement in efficiency obtained thanks to the use of so-called “in ecodesign” transformers and the optimization of MV grids as the difference between losses
detected before and after these interventions. Cumulative energy saved to 2023 amounts to 9,818 MWh.
(2) It should be noted that 302 MW are included and which refer to the installed capacity of the Seven Cowboy project, already included in the ”new renewableprojects identified in 2023” for the Green Bonds issued in 2018.

(5) Projects relating to renewable plants with a capacity of more than 20 MW are considered to be relevant.
(6) The indicator “Material reused/recycled after revamping” is not applicable, as the proceeds of the Green Bond were not used to finance revamping projects
in 2017, 2018 and 2019.
(7) These are injuries that caused consequences to health that permanently changed a person’s life (for example, amputation of limbs, paralysis, neurologicaldamage, etc.).

474

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Green Bond

Appendix| 2017 |Table A – Financial indicators
Commercial
Capacity operation(MW)date Currency

Investment(value in currency)

GBGB
proceeds
proceeds
allocatedallocatedin 2017in 2019(mil euros) (mil euros)(2)

Value incurrency(mil)

Equivalent ineuro (mil)(1)

USD

420

378

77

-

Nov-17

USD

435

392

132

-

185

Nov-18

USD

325

293

166

-

In Operation27

May-18

USD

49

48

48

-

Solar

In Operation25

Dec-17

USD

44

41

36

-

Rattlesnake
Creek

Wind

In Operation320

Dec-18

USD

430

387

204

-

USA

Rock Creek

Wind

In Operation300

Oct-17

USD

500

450

73

-

BRAZIL

Horizonte MP Solar

In Operation

103

Feb-18

USD

110

99

43

-

BRAZIL

DelfinaWind

In Operation

209

Aug-17

USD

440

364

33

-

CHILE

Cerro
Pabellón

Geothermal

In Operation81

Aug-17

USD

420

347

57

-

CHILE

Sierra Gorda

Wind

In Operation112

Dec-16

USD

215

194

17

-

PERU

Wayra

Wind

In Operation

132

Mar-18

USD

165

149

82

-

PERU

Rubi

Solar

In Operation180

Nov-17

USD

170

153

68

-

ITALY

Variousprojects(3)Geothermal/
In Operation
Hydroelectric

34

-

EUR

113

113

66

-

CANADA

Riverview

Wind

105

Apr-20

CAD

8

81

210

187

2

23

Country

Project
nameTechnology

StatusUSA

Red Dirt

Wind

In Operation

300

Nov-17

USA

Thunder
Ranch

Wind

In Operation

298

USA

Hilltopper

Wind

In Operation

USA

Stillwater
Solar II

Solar

USA

Woods Hill

USA

In Operation

CANADA

Castel RockRidge 2Wind

In Operation

29

Mar-20CAD

MEXICO

Magdalena 2

Solar

In Operation220

Sep-19

USD

165

136

9

112

MEXICO

Amistad IIWind

In Operation100

Dec-19

USD

115

97

22

55

MEXICO

Amistad III

Wind

In Operation108

Feb-20USD

MEXICO

Amistad IV

Wind

In Operation162

Dec-20

USD

305

269

MEXICO

DoloresWind

In Operation

274

May-20

USD

290

PANAMA

Estrella Solar

Solar

In Operation

8

Aug-18USD

8ZAMBIA

NgonyeSolar

In Operation

34

Mar-19USD

ITALY

Variousprojects(4)Geothermal/
Hydroelectric

8

-

EUR

TOTAL

11

59

18

57

255

36

192

7

5

-

40

34

10

-

43

43

14

-

1,238

579

(1)

Indicative value in euros (EUR), although the investment in US dollars (USD) applies where present. The exchange rate used for projects allocated in the2017 Green Bond is 1.11 USD/EUR, for projects allocated in the 2018 Green Bond the exchange rate is 1.19 USD/EUR and for projects allocated in 2019 theexchange rate is 1.21. For projects whose investment value was updated, the average annual rate of the year in which the project came into operation wasused.
(2) Additional proceeds were allocated for some renewable projects that were already identified in the 2017 and 2018 Green Bond, for which new capitalized
costs emerged.
(3) Aggregate data related to 24 small sized Italian projects. The technologies involved are geothermal and hydroelectric.
(4) Aggregate data related to 8 small sized Italian projects. The technologies involved are geothermal and hydroelectric.

Green Bond Report 2023 – supporting notes

475

Green Bond

| 2017 |Table B – ESG indicators
2023 generation(GWh)

CO2 avoided 2023(t)

Red Dirt

829

503,216

5,976

3,757,070

USA

Thunder Ranch

981

595,382

6,191

3,900,802

USA

Hilltopper

564

342,516

2,890

1,788,059

USA

Stillwater Solar II

33

19,736

129

81,640USA

Woods Hill

27

16,682

162

101,236

USA

Rattlesnake Creek

958

581,148

5,477

3,383,196

USA

Rock Creek

1,022

620,332

6,566

4,124,526

BRAZIL

Horizonte MP

180

109,997961

551,990

BRAZIL

Delfina

794

486,5125,202

2,966,182

CHILE

Cerro Pabellón

265

182,816

1,488

1,122,070

CHILE

Sierra Gorda

291

200,702

2,347

1,775,036

PERU

Wayra

480

208,714

3,385

1,633,652

PERU

Rubi

439

190,939

2,613

1,258,101

ITALY

Various projects(1)

-

-

582

278,954Country

Project nameUSA

2017-2023 generation CO2 avoided 2017-2023
(GWh)
(t)

CANADA

Riverview340

197,660

1,263

801,957

CANADA

Castel Rock Ridge 2

93

53,905372

236,938

MEXICO

Magdalena 2

516

261,965

2,016

1,099,359

MEXICO

Amistad II

-

-

192

103,391

MEXICO

Amistad III

-

-

168

90,060MEXICO

Amistad IV

-

-

128

69,730MEXICO

Dolores

748

379,793

2,666

1,449,436

PANAMA

Estrella Solar

11

7,946

51

39,316ZAMBIA

Ngonye60

68,528270

285,075

ITALY

Various projects(2)

-

-

12

6,136

(1)

Aggregate data related to 24 small sized Italian projects. The technologies involved are geothermal and hydroelectric. The share of generation for only
repowering cannot be separated from the rest of the plant because it is not possible to precisely determine the share of energy fed to the network only
due to the increase in power.
(2) Aggregate data related to 8 small sized Italian projects. The technologies involved are geothermal and hydroelectric. The share of generation for only repowering cannot be separated from the rest of the plant because it is not possible to precisely determine the share of energy fed to the network only due
to the increase in power.

476

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Performance 2023

4

Green Bond

5

Appendix| 2017 |Table C – Further ESG indicators
Water conActions to
Plant shutdown
saumption protect/restore
or site stop due to Injuries (fatalities andm3 (1) biodiversity (no.) environmental issues (no.) “Life Changing”) (no.)

Socialprojects
Beneficiaries of(no.) social projects (no.)

Country

Project name

USA

Red Dirt

-   

-   

-   

-   

4

436

USA

Thunder Ranch

-   

-   

-   

-   

3

64

USA

Hilltopper

-   

-   

-   

-   

1

500

USA

Stillwater Solar II

-   

-   

-   

-   

-

-

USA

Woods Hill

-   

-   

-   

-   

-

-

USA

Rattlesnake Creek

-   

-   

-   

-   

1

100

USA

Rock Creek

-   

-   

-   

-   

2

36

BRAZIL

Horizonte MP

222

2

-   

-   

5

318

BRAZIL

Delfina

-   

1

-   

-   

6

2,245

CHILE

Cerro Pabellón

-   

-   

-   

-   

1

636

CHILE

Sierra Gorda

-   

1

-   

-   

1

8

PERU

Wayra

-   

3

-   

-   

4

1,579

PERU

Rubi

-   

-   

-   

-   

3

2,340

ITALY

Various projects(2)

-   

-   

-   

-   

1

4

CANADA

Riverview

-   

-   

-   

-   

2

60

CANADA

Castel Rock Ridge 2

MEXICO

Magdalena 2

MEXICOMEXICO

-   

-   

-   

-   

-

-

1,020

2

-   

-   

5

358

Amistad II

-   

-   

-   

-   

5

203

Amistad III

-   

-   

-   

-   

5

219

MEXICO

Amistad IV

-   

-   

-   

-   

5

329

MEXICO

Dolores

-   

2

-   

-   

3

163

PANAMA

Estrella Solar

40

-   

-   

-   

3

110

ZAMBIA

Ngonye

252

-   

-   

-   

2

1,100

ITALY

Various projects(3)

-   

-   

-   

-   

1

1

(1) Industrial water consumption related to water extraction data for plant.
(2) Aggregate data related to 24 small sized Italian projects. The technologies involved are geothermal and hydroelectric.
(3) Aggregate data related to 8 small sized Italian projects. The technologies involved are geothermal and hydroelectricGreen Bond Report 2023 – supporting notes

477

Green Bond

| 2018 |Table A – Financial indicators
Commercial
Capacity operation(MW)date Currency

Investment(value in currency)
Value incurrency
(mil)

GB
GB
proceeds proceeds
allocated allocatedEquivalent inin 2018
in 2019
euro (mil)(1) (mil euros) (mil euros(2)Country

Project
nameTechnology Status

USA

Diamond VistaWind

In Operation300

Dec-18

USD

400

336

100

-

USA

FennerRepoweringWind

In Operation29

Dec-18

USD

29

24

21

-

USA

High
Lonesome I+IIWind

In Operation500

Dec-19

USD

720

595

81

75

USA

Roadrunner

Solar

In Operation

497

Jun-20

USD

436

366

30

141

USA

Seven Cowboy WindIn Operation302

Oct-22

EUR

427

405

73

101

COLOMBIA El Paso

Solar

In Operation86

Oct-19

USD

70

59

54

-

USA

AuroraSolar

In Operation150

Jun-17

USD

290

244

181

-

USA

Little Elk

Wind

In Operation74

Dec-15

USD

130

107

5

-

USA

Chisholm View II WindIn Operation65

Dec-16

USD

90

76

29

-

575

317

TOTAL
(1)

Indicative value in euros (EUR), although the investment in US dollars (USD) applies where present. The exchange rate used for projects allocated in the2017 Green Bond is 1.11 USD/EUR, for projects allocated in the 2018 Green Bond the exchange rate is 1.19 USD/EUR and for projects allocated in 2019 theexchange rate is 1.21. For projects whose investment value was updated, the average annual rate of the year in which the project came into operation wasused.
(2) Additional proceeds were allocated for some renewable projects that were already identified in the 2017 and 2018 Green Bond, for which new capitalized
costs emerged.

Table B – ESG indicators
Country

Project name

USA

Diamond Vista

CO2 avoided 2023
(t)

1,102

668,6132018-2023 generation CO2 avoided 2018-2023
(GWh)
(t)
5,775

3,566,550

USA

Fenner Repowering

70

42,651

318

193,691

USA

High Lonesome I+II

1,046

635,031

5,090

3,088,777

USA

Roadrunner

1,011

613,287

3,858

2,342,918

USA

Seven Cowboy

749

454,438

749

454,438COLOMBIAEl Paso152

89,718567

414,599

USA

Aurora198

120,178

1,237

774,455

USA

Little Elk

310

188,246

1,936

1,216,369

USA

Chisholm View II

206

124,809

1,326

832,527(1)478

2023 generation
(GWh)

(1)

Unlike other repowering plants, the service life of the Fenner plant was extended and its capacity (MW) was not increased, therefore the capacity and generation data refer to the plant in its entirety.

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

Green Bond

5

Appendix| 2018 |Table C – Further ESG indicators
Water conActions to
Plant shutdown
sumption protect/restore
or site stop due to Injuries (fatalities andm3(1) biodiversity (no.) environmental issues (no.) “Life Changing”) (no.)

Socialprojects
Beneficiaries of(no.) social projects (no.)

Country

Project name

USA

Diamond Vista

-

-

-

-

2

40

USA

Fenner Repowering

-

-

-

-

3

310

USA

High Lonesome I+II

-

-

-

-

1

150

USA

Roadrunner

-

-

-

-

3

154

USA

Seven Cowboy

-

-

-

-

3

475

COLOMBIA El Paso

-

2

-

-

1

3,420

USA

Aurora

-

-

-

-

4

298

USA

Little Elk

-

-

-

-

2

375

USA

Chisholm View II

-

-

-

-

2

16

(1)

Industrial water consumption related to water extraction data for plant.

Green Bond Report 2023 – supporting notes

479

Green Bond

| 2018 |Table A – Financial indicators

StatusGreen Bond
proceeds allocatedInvestments into the project incurrency (mil)2018 (mil euros)Country

Project cluster

Cluster

ITALY

Smart meter

Asset Development

(1)

-

21

-

305

ITALY

Smart grid

Asset Development

(2)

ITALY

Quality&Efficiency

Asset Development

(2)

ITALY

Other ICT Investment

Asset Development(2)

Total Asset Development
ITALY

Maintenance

Asset Management(2)

Total Asset Management
Total Asset Development andAsset Management Country Italy

46

-

52

824

424

-

242

452

242

1,276

666

(1)

As at December 31, 2018 the final figures of the project consisted of approximately 420 million euros of meters and concentrators entered into operationin the same month as the installation and about 26 million euros for the central remote management system and related software.
(2) The final figures are composed of a very large number of interventions that include activities started in previous years and concluded in the current year,
activities started in the current year and concluded in the same year and activities started in the year and not yet completed at December 31, 2018.

Table B – ESG indicators

COUNTRY - ITALY

Cabling
Network(%) automation (%)

Oilequipmentwith PCB
removed (no.)

Renewable
End users
generation New “users”
with active
units connected
smart connected to to network
meters (mil) network (no.)(no.)

Technical
networklosses (%)

Total Asset Development

-

-

-

32

1,520,510

360,873-

Total Asset Management

76

39

167

-

-

-

4

(1)

Energysaved(MWh)(1)6,855

For Enel Grids projects, energy savings are represented in terms of “energy saved” in MWh in place of the CO2 avoided (t) to specifically report the improvement in efficiency obtained thanks to the use of so-called “in ecodesign” transformers and the optimization of MV grids as the difference between losses
detected before and after these interventions.

Table C – Further ESG indicators
Country
ITALY

480 Sustainability Report 2023

Injuries (fatalities and“Life Changing”) (no.)

Social projects(no.)

Beneficiaries of social
projects (no.)

Biodiversity projects
(no.)

-   

166

30,7839

1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Green Bond

Appendix| 2019 |TABLE A – Financial indicators
Investments(value in currency)
Value incurrenCurrency cy (mil)

GB
GB
GB
proceeds proceeds
proceeds
Equivalent allocated allocated allocated inin euroin 2017in 20182019 (mil(mil)(1) (mil euros) (mil euros)
euros)(2)Country

Project
nameTechnology

StatusUSA

Whitney Hill

Wind

In Operation66

Dec-19

USD

281

232

-   

-   

10

USA

Aurora Wind WindIn Operation299

Dec-20

USD

450

401

-   

-   

10

USA

Cimarron
Bend 3phase IWindIn Operation199

Dec-20

USD

281

248

-   

-   

4

USA

Alta Farms II

Wind

In Operation

201

Dec-22

USD

362

343

-   

-   

55

ITALY

Variousprojects(3)Hydroelectric In Operation

33

-

EUR

55

55

-   

-   

10

Wind

105

Apr-20

CAD

8

-   

81

210

187

2

-   

23

CANADA Riverview

Capacity(MW)

Commercial
operation date

In Operation

CANADA

Castel RockRidge 2Wind

In Operation

29

Mar-20CAD

MEXICO

Magdalena
2

Solar

In Operation220

Sep-19

USD

165

136

9

-   

112

MEXICO

Amistad IIWind

In Operation100

Dec-19

USD

115

97

22

-   

55

MEXICO

Amistad III

Wind

In Operation108

Feb-20

USD

-   

59

Amistad IV

Wind

In Operation162

Dec-20

USD

269

11

MEXICO

305

17

-   

57

MEXICO

DoloresWind

In Operation

274

May-20

USD

290

255

36

-   

192

USA

High
Lonesome
I+II

Wind

In Operation500

Dec-19

USD

720

595

-   

81

75

USA

Roadrunner

Solar

In Operation

497

Jun-20

USD

436

366

-   

30

141

USA

Seven
CowboyWind

In Operation302

Oct-22

USD

427

405

-   

73

101

104

184

986

TOTAL
(1)

Indicative value in euros (EUR), although the investment in US dollars (USD) applies where present. The exchange rate used for projects allocated in the2017 Green Bond is 1.11 USD/EUR, for projects allocated in the 2018 Green Bond the exchange rate is 1.19 USD/EUR and for projects allocated in 2019 theexchange rate is 1.21. For projects whose investment value was updated, the average annual rate of the year in which the project came into operation wasused.
(2) Additional proceeds were allocated for some renewable projects that were already identified in the 2017 and 2018 Green Bond, for which new capitalized
costs emerged.
(3) Aggregate data related to 8 small sized Italian projects. The concerned technology is hydroelectric.

Table B – ESG indicators
2023 generation(GWh)

CO2 avoided 2023
(t)

Whitney Hill

175

106,059776

471,346

Aurora Wind

946

574,196

2,861

1,734,123

USA

Cimarron Bend 3 phase I

696

422,175

2,312

1,395,750

USA

Alta Farms II

358

217,399358

217,399

ITALY

Various projects

-

-

-

-

Country

Project name(1)

USA
USA

(1)
(2)

(2)

2019-2023 generation CO2 avoided 2019-2023
(GWh)
(t)

For projects for which new Capex were allocated in 2019, in addition to what was allocated in the 2017 and 2018 Green Bond, for the ESG indicators referto the 2017 and 2018 tables.
Aggregate data related to 8 small sized Italian projects. The concerned technology is hydroelectric. The share of generation for only repowering cannot be
separated from the rest of the plant because it is not possible to precisely determine the share of energy fed to the network only due to the increase in power.

Green Bond Report 2023 – supporting notes

481

Green Bond

| 2019 |Table C – Further ESG indicators
Water
Actions to
Plant shutdown
Socialconsumption protect/restore
or site stop due to Injuries (fatalities and projects
Beneficiaries ofm3 (2) biodiversity (no.) environmental issues (no.) “Life Changing”) (no.)(no.) social projects (no.)

Country

Project name(1)USA

Whitney Hill

-   

-   

-   

-   

-   

-   

USA

Aurora Wind

-   

-   

-   

-   

-   

-   

USA

Cimarron Bend 3
phase I

-   

-   

-   

-   

1

4

USA

Alta farms II

-   

1

-   

-   

-   

-   

ITALY

Various projects(3)

-   

-   

-   

-   

3

3,018

(1)

For projects for which new Capex were allocated in 2019, in addition to what was allocated in the 2017 and 2018 Green Bond, for the ESG indicators referto the 2017 and 2018 tables.
(2) Industrial water consumption related to water extraction data for plant.
(3) Aggregate data related to 8 small sized Italian projects. The concerned technology is hydroelectric.

482

Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Table D – Overall information
CRITERION

Respect for human rights
standards and preventionof breaches

INDICATOR

GB 2023 DATA/APPROACH

Number and descriptionof the reports identified
through the Enelmonitoring system

Four reports were received for alleged violations of the principle of respectfor diversity and non-discrimination, three of which were concluded as nonviolations and one of which is under analysis.

Results of risk analysis
on human rights atcountry level

The country-level risk analysis conducted in the Group’s areas of presence in2023 showed that:• risks related to issues of corruption, environment, diversity and nondiscrimination, community relations and privacy were among the most salientissues (“to be monitored”)(1);• risks related to labor practices (freedom of association and collective
bargaining, rejection of forced labor and child labor, fair and favorable
working conditions, health, safety and well-being at work) and potential
impacts from customer-facing communication activities were found to beamong the lowest risk level (“acceptable” level)(1).
These results, together with the findings from the identification of potential
gaps, showed that the safeguards included in the management system inplace to mitigate potential impacts are robust(2) and adequately manage themain topics identified, which, according to the definitions of the classification
included in the UN Guiding Principles, means that the management system forthe main topics is effective.

Number and descriptionof the reports identified
through the Enelmonitoring system

No reports regarding projects financed with proceeds from the GB.

Results of risk analysis
on human rights atcountry level

The country-level risk analysis conducted in the Group’s areas of presence in2023 showed that the risks related to labor practices (freedom of associationand collective bargaining, rejection of forced labor and child labor, fair andfavorable working conditions, health, safety and well-being in the workplace)
have a minimum risk level (“acceptable” level)(1).
These results, together with the findings from the identification of potential
gaps, showed that the safeguards included in the management system inplace to mitigate potential impacts are robust(2) and adequately manage themain topics identified, which, according to the definitions of the classification
included in the UN Guiding Principles, means that the management system forthe main topics is effective.

Number and descriptionof the reports identified
through the Enelmonitoring system

A report was received on a supplier’s failure to report an injury, which turned out
to be unfounded and therefore concluded as a non-violation.

Respect for labor rights

Working conditions(employment relationships,
training, health and safety
conditions, respect forworking hours)

Number of injuries
No fatalities or “Life Changing” injury involving Enel people was recorded for(fatalities and “Life Changing”) projects financed with proceeds from the GB.

Integration of environmental
and social factors into the
supply chain – Responsible
purchasing

Ethical clauses incontracts with suppliers

Through the General Contract Conditions, Enel requires its contractors andsubcontractors, among other things, to comply with the ten principles of the United
Nations Global Compact, respect for and protection of internationally recognizedhuman rights, as well as respect for ethical and social obligations regarding thefight against child labor and protection of women, equal treatment, prohibitionof discrimination, freedom of association, association and representation, forcedlabor, safety and environmental protection, sanitary conditions and also regulatory
conditions, retribution, contributions, insurance and tax.

Business ethics (preventionof corruption and money
laundering, fraud,
anticompetitive practices)

Number and descriptionof the reports identified
through the Enelmonitoring system

There are no significant events to report relating to projects financedwith GB proceeds.

Audit and internal control% of area/country processes
The average annual coverage level of the processes through internal audit
covered by internal audit
activities is around 40%.
activities(1) Reference scale of risks: 1. High risk; 2. High priority risk; 3. Risk to be monitored; 4. Acceptable risk (minimum level).
(2) Reference scale of performance values: Robust (75%-100%); Good (50%-74%); Sufficient (25%-49%); Needs improvement (0%-24%).

Green Bond Report 2023 – supporting notes 483

484 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix485

SUSTAINABILITY-LINKED
FINANCING REPORTContents:
1. Introduction
2. List of outstanding Sustainability-Linked bonds issued by Enel
3. Enel’s KPI performance
Performance of KPI #1
Performance of KPI #2
Performance of KPI #3
Performance of KPI #4
Performance of KPI #5
4. Verification on Enel’s KPI performance

1. Introduction
In line with the Sustainability-Linked Financing Framework
published by Enel on its website(1), Enel issues and executes financial instruments linked to predetermined Sustainability Performance Targets (SPTs).
Enel and/or its subsidiaries issue Sustainability-Linked
bonds, SDG Commercial Papers and underwrite Sustainability-Linked loans, Sustainability-Linked exchange rates
derivatives and Sustainability-Linked guarantees linked to

SPTs related to five KPIs, which contribute to SDG 7 (Ensure access to affordable, reliable, sustainable and modern
energy for all) and SDG 13 (Take urgent action to combat
climate change and its impacts), as well as the environmental targets defined by the European Union in the EU
taxonomy regulation, with particular attention to the climate mitigation goal.

KPIs and Sustainability Performance Targets (SPT) summary
KPI

Actual values

Sustainability Performance Targets (SPT)

2023

2023

2024

2025

2026

2030

2040

KPI #1
Scope 1 GHG emissions Intensity relating to Power Generation(gCO2eq/kWh)

160

148

140

130

125

72

0

KPI #2
Scope 1 and 3 GHG emissions Intensity relating toIntegrated Power (gCO2eq/kWh)

168

135

135

73

0

KPI #3Absolute Scope 3 GHG emissions relating to Gas Retail (MtCO2eq)

16.8

20,9

20,0

11,4

0

73%

74%

80%

100%

KPI #4
Renewable Installed Capacity Percentage (%)

68.2%

KPI #5
Proportion of Capex aligned to the EU taxonomy (%)84.8%(1) Enel - Sustainability-Linked Financing Framework – February 2024.
(2) SPT con periodo di osservazione cumulato 2023-2025.
(3) SPT con periodo di osservazione cumulato 2024-2026.

486 Sustainability Report 2023

65%

69%

>80%
>80%
(2023- (2024(2)2025)2026)(3)1Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

Worldwide greenhouse gas (GHG) emissions continued
to increase in 2023, largely due to the economic reboundand a further increase in fossil fuel consumption, with theenergy crisis and high natural gas and liquefied natural gas
prices triggering an increased use of unabated coal as acheaper but more emissive fuel.
The Group, however, managed to reduce its direct andindirect GHG emissions across its entire value chain by
26.3% overall, compared to the previous year. In addition,
the Group also reduced its Scope 1 GHG emissions Intensity relating to Power Generation by more than 30.1%,
from 229 gCO2eq/kWh in 2022 down to 160 gCO2eq/kWh
in 2023. Such reduction was the result of a 12.9% increaseof consolidated renewables production and a 37.5% reduction of consolidated thermoelectric production, compared to 2022, as consequence of the Group’s strategy ofshifting its energy mix portfolio towards renewables andadvancing in its decarbonization process.
Nevertheless, the war in Ukraine and the consequent restrictions in EU gas imports from Russia, which caused adecrease in gas availability accompanied by a surge in thewholesale prices of electricity and gas with severe effects
for households and businesses, led the EU governments toimplement a range of policy responses to mitigate the impact of higher costs and ensure the energy system’s stability.
In particular, the Italian government responded with anational natural gas consumption containment plan that
included, among its measures, the maximization of electricity production in the thermoelectric sector using fuels other than gas. This was achieved through the Decree
14/2022 that required the country’s national transmission
system operator (TSO) to define a program aimed at maximizing power generation from coal-fired power plants
until the end of September 2023. Consequently, the TSO
identified Enel’s coal-fired power plants as essential andrequired them to maximize their production.
On the other hand, in Spain, the government authorization
for the closure of As Pontes coal power plant requested by
Enel’s subsidiary Endesa in December 2019 for June 2021
was postponed until the end of 2023 as the power plant was

4

Performance 2023

5

Appendix

identified as essential by the transmission system operator.
As a consequence of the unprecedented crisis that the European energy system faced in 2022 and 2023, the Group’s
emission reduction carried out in 2023 was not enough tomeet the Scope 1 GHG emissions Intensity relating to Power
Generation target set for 2023 and announced at the Capital Markets Day held in November 2020 for the launch of
the 2021-2023 Strategic Plan. Due to the energy crisis, theintensity figure stood slightly higher than the target of 148
gCO2eq/kWh. In absence of the above-mentioned effect,
Enel would have been able to achieve an intensity emission
level well below the 148 gCO2eq/kWh target.
As a consequence, the Group’s Sustainability-Linked instruments which set the Scope 1 Power Generation Intensity target of 148 gCO2eq/kWh for 2023 will be subject
to an increase of the relevant margin and Enel will comply
with its obligations in accordance with the terms and conditions of the legal documentation of such Sustainability-Linked transactions.
Despite these unprecedented circumstances, the Group’s
emissions intensity in 2023 remained aligned with the 1.5 °C
pathway. In fact, the sector’s decarbonization approach of
the SBTi established a maximum threshold of 246 gCO2eq/
kWh for Enel for 2023, well above the actual figure.
Ultimately, Enel’s decarbonization commitment remains
confirmed for both the short, medium and long term, as
envisaged in the new 2024-2026 Strategic plan, which establishes a new short-term target for 2026 of 125 gCO2eq/
kWh. This new target has been included in the Sustainability-Linked Financing Framework updated in January2024 and linked to the first launch of Sustainability-Linked
bonds in 2024, confirming Enel’s commitment towards theenergy transition as well as contributing to the environmental and financial sustainability of the Group’s development strategy. Furthermore, the target for 2030 to reduce
80% of the GHG scope 1 intensity from power generation
with respect to 2017 baseline and the final target for 2040
aimed at reducing 100% of these emissions without relying on any type of offset or carbon removal mechanism
remain confirmed as well.

Sustainability-Linked Financing Report487

2. List of outstanding Sustainability-Linked
bonds issued by Enel
Issuancedate

AmountissuedAmountoutstanding

Maturity

KPI

SPT

Date orperiod ofreference

ISIN

Issuer

US29278GAL23

Enel
Finance
10/09/2019 1,500,000,000 $International
NV (“EFI”)

1,500,000,000 $10/09/2024

Renewable
Installed
Capacity
Percentage (%)

55%

2021

XS2066706818

EFI

17/10/2019 1,000,000,000 €

1,000,000,000 €17/06/2024

Renewable
Installed
Capacity
Percentage (%)

55%

2021

XS2066706909 EFI

17/10/2019 1,000,000,000 €

1,000,000,000 €17/06/2027

Renewable
Installed
Capacity
Percentage (%)

55%

2021

EFI

17/10/2019 500,000,000 €

500,000,000 €17/10/2034

Scope 1 GHG
emissions
125
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

XS2244418609 EFI

20/10/2020 500,000,000 £

500,000,000 £20/10/2027

Renewable
Installed
Capacity
Percentage (%)

17/06/2027

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

17/06/2030

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

17/06/2036

Scope 1 GHG
emissions82
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

12/07/2026

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

12/07/2028

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

12/07/2031

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

XS2066706735

XS2353182020

XS2353182293

XS2353182376

EFI

17/06/2021 1,000,000,000 €EFI

17/06/2021 1,250,000,000 €EFI

17/06/2021 1,000,000,000 €US29278GAM06 EFI

12/07/2021 1,250,000,000 $US29278GAN88 EFI

12/07/2021 1,000,000,000 $US29278GAP37 EFI

Achieved

12/07/2021 1,000,000,000 $Not in line

488 Sustainability Report 2023

1,000,000,000 €

1,250,000,000 €

1,000,000,000 €

1,250,000,000 $

1,000,000,000 $

1,000,000,000 $

60%

2022

Achievement of
goals

1

Letter to stakeholders

ISIN

2
Enel’s commitment
to sustainable development

IssuerIssuancedate

AmountissuedEnel
Finance
US29280HAB87
12/07/2021 750,000,000 $America,
LLC (“EFA”)

XS2390400633 EFI

XS2390400716

EFI

XS2390400807 EFI

XS2432293673

XS2432293756

XS2432293913

EFI

EFI

EFI

XS2466363202 EFI

USN30707AN87 EFI

US29278GAW87 EFI

Achieved

28/09/2021 1,250,000,000 €28/09/2021 1,000,000,000 €28/09/2021 1,250,000,000 €17/01/2022 1,250,000,000 €17/01/2022 750,000,000 €17/01/2022 750,000,000 €11/04/2022 750,000,000 £15/06/2022 750,000,000 $15/06/2022 750,000,000 $3

Stakeholder engagement andmateriality analysis

Amountoutstanding

4

Performance 2023

Maturity

KPI

12/07/2041

Scope 1 GHG
emissions82
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

28/05/2026

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

1,000,000,000 €28/05/2029

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

1,250,000,000 €Scope 1 GHG
emissions82
Intensity relating
28/09/2034
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

1,250,000,000 €17/11/2025

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

17/01/2031

Scope 1 GHG
emissions
140
Intensity relating
gCO2eq/ 2024
to Power
kWh
Generation(gCO2eq/kWh)

17/01/2035

Scope 1 GHG
emissions82
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

11/04/2029

Scope 1 GHG
emissions
140
Intensity relating
gCO2eq/ 2024
to Power
kWh
Generation(gCO2eq/kWh)

15/06/2025

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

15/06/2027

Scope 1 GHG
emissions
140
Intensity relating
gCO2eq/ 2024
to Power
kWh
Generation(gCO2eq/kWh)

750,000,000 $

1,250,000,000 €

750,000,000 €

750,000,000 €

750,000,000 £

750,000,000 $

750,000,000 $SPT

Date orperiod ofreference

5

AppendixAchievement ofgoals

Not in line

Sustainability-Linked Financing Report 489

ISIN

Issuance
date

Issuer

US29278GAX60 EFI

15/06/2022 1,000,000,000 $US29278GAY44 EFI

XS2531420656

15/06/2022 1,000,000,000 $EFI

09/09/2022 1,000,000,000 €US29278GAZ19 EFI

14/10/2022 750,000,000 $US29280HAA05 EFA

14/10/2022 1,000,000,000 $US29278GBA58 EFI

14/10/2022 1,250,000,000 $US29278GBB32 EFI

XS2589260723

Amountissued

14/10/2022 1,000,000,000 $EFI

20/02/2023 750,000,000 €Amountoutstanding

Maturity

KPI

15/06/2032

Scope 1 GHG
emissions82
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

1,000,000,000 $15/06/2052

Scope 1 GHG
emissions
Intensity relating 0 gCO2eq/2040
to Power
kWh
Generation(gCO2eq/kWh)

1,000,000,000 €Scope 1 GHG
emissions
140
Intensity relating
09/03/2029
gCO2eq/ 2024
to Power
kWh
Generation(gCO2eq/kWh)

1,000,000,000 $

750,000,000 $

1,000,000,000 $

1,250,000,000 $

1,000,000,000 $

750,000,000 €SPT

14/10/2025

Scope 1 GHG
emissions
148
Intensity relating
gCO2eq/ 2023
to Power
kWh
Generation(gCO2eq/kWh)

14/10/2027

Scope 1 GHG
emissions
140
Intensity relating
gCO2eq/ 2024
to Power
kWh
Generation(gCO2eq/kWh)

14/10/2032

Scope 1 GHG
emissions82
Intensity relating
gCO2eq/ 2030
to Power
kWh
Generation(gCO2eq/kWh)

14/10/2052

Scope 1 GHG
emissions
Intensity relating 0 gCO2eq/2040
to Power
kWh
Generation(gCO2eq/kWh)

20/02/2031

Scope 1 GHG
emissions130
Intensity relating
gCO2eq/ 2025
to Power
kWh
Generation(gCO2eq/kWh)
Proportion ofCapex aligned to>80%
the EU taxonomy(%)

XS2589260996 EFI

20/02/2023 750,000,000 €Date orperiod ofreference

750,000,000 €

2023-2025

Scope 1 and 3
GHG emissions
Intensity relating 0 gCO2eq/
2040
to Integrated
kWhPower (gCO2eq/
20/02/2043 kWh)
Absolute Scope
3 GHG emissions 0
2040
relating to Gas
MtCO2eq
Retail (MtCO2eq)

Achieved

Not in line

490 Sustainability Report 2023

Achievement of
goals

1

Letter to stakeholders

ISIN

2
Enel’s commitment
to sustainable development

Issuer

XS2751666426 EFI

Issuancedate

Amountissued23/01/2024 750,000,000 €3

Stakeholder engagement andmateriality analysis

4

Performance 2023

Maturity

750,000,000 €Scope 1 GHG
emissions
125
Intensity relating
gCO2eq/ 2026
to Power
kWh
Generation
23/07/2028 (gCO2eq/kWh)

KPI

SPT

Proportion ofCapex aligned
to the EU
taxonomy (%)

XS2751666699 EFI

23/01/2024 1,000,000,000 €

1,000,000,000 €Scope 1 and 3
GHG emissions
Intensity relating
to Integrated
Power
23/01/2035 (gCO2eq/kWh)>80%

Achieved

AppendixAchievement ofgoals

2024-2026

72
gCO2eq/ 2030
kWh

Renewable
Installed Capacity 80%
Percentage (%)

Total

Date orperiod ofreference

Amountoutstanding

5

2030

29,468,331,875 €eq(4) 29,468,331,875 €eq(5)Not in line

(4) Calculated with the following exchange rates: EUR/USD FX and EUR/GBP FX at December 29, 2023.
(5) Calculated with the following exchange rates: EUR/USD FX and EUR/GBP FX at December 29, 2023.

Sustainability-Linked Financing Report491

3. Enel’s KPI performance
a. KPI #1: Scope 1 GHG emissions Intensity relating toPower Generation (gCO2eq/kWh)

KPI #1: Scope 1 GHG emissions Intensity relating to Power Generation (gCO2eq/kWh)(6)Group Scope 1 greenhouse gas emissions (GHG) intensity (gCO2eq/kWh)• Definition/Methodology: Group Scope 1 greenhouse gas emissions (including CO , CH and N O) from power gen2

42

eration and measured in grams of CO2eq per kWh, as defined and detailed in the documentation for Sustainability-Linked transactions and in line with the GHG Protocol(7).
• Rationale: the KPI measures Enel’s performance with respect to the decarbonization strategy of its energy generation
mix, which will be fully reached by 2040, while mitigating at the same time the direct emissions from its most relevant
Scope 1 source, which represents 95% of total Scope 1 emissions in 2023.
• Materiality: in 2023, KPI #1 Scope 1 GHG emissions Intensity relating to Power Generation represents 34.7% of Enel’s
total carbon footprint and is equivalent to 32.7 MtCO2eq.
• Intermediate and long-term goals: since 2015 Enel has defined a series of goals for reducing the direct greenhousegas emissions deriving from its energy generation activities, increasing the level of ambition in every update madeto align it with the most ambitious climatic scenario available. Also in 2015, Enel defined its first science-based targetaligned with the scenario “well below 2 degrees”, targeted toward reducing the carbon intensity 25% as compared to2007 (reaching 350 gCO2eq/kWh). In 2019, Enel, having reached the 2020 goal a year in advance, announced a newscience-based objective for 2030 aligned with the “well below 2 degrees” scenario, increasing the percentage ofemissions reduction from 70% to 80% as compared to 2017 (from 125 gCO2eq/kWh to 82 gCO2eq/kWh), now alignedwith the 1.5 °C scenario. In 2021, Enel announced that it had brought forward the target for full decarbonization by
10 years, from 2050 to 2040. This goal was certified by SBTi in 2022 together with the update to the 2030 goal, which
decreased from 82 gCO2eq/kWh to 72 gCO2eq/kWh, which also increased the level of ambition in this case. Since 2020,
Enel has also defined annual short-term goals to make its pathway toward full decarbonization more visible. These
goals were set in different updates of the Strategic Plan and have the following thresholds: 148 gCO2eq/kWh al 2023,
140 gCO2eq/kWh at 2024, 130 gCO2eq/kWh at 2025 e 125 gCO2eq/kWh at 2026.
• Contribution to the EU environmental goal: Climate Change Mitigation.
• Contribution to the UN sustainable development goals: SDG 13: Take urgent action to combat climate change andits impacts.

Enel’s KPI #1 and relative SPT performance2021(actual)2022(actual)2023(actual)2024(target)2025(target)2026(target)2030(target)2040(target)KPI #1
Performance

225

229

160

140

130

125

72

0

Gap vs 2023

77

81

Gap vs 2024

85

89

20

Gap vs 2025

95

99

30

10

Gap vs 2026

100

104

35

15

5

Gap vs 2030

153

157

88

68

58

53

Gap vs 2040

225

229

160

140

130

125

72

(6) In the previous versions of Enel’s Sustainability-Linked Financing Framework and in the documentation for the financial instruments issued in compliancewith these versions, KPI #1 “Scope 1 GHG emissions Intensity relating to Power Generation (gCO2eq/kWh)” was defined as “Direct Greenhouse Gas Emissions (Scope 1) (gCO2eq/kWh)”.
(7) The GHG Protocol provides the greenhouse gas accounting standards (https://ghgprotocol.org/).

492 Sustainability Report 2023

1

Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendixb. KPI #2: Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh)
KPI #2: Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh)Group’s combined greenhouse gas emissions, Scope 1 (including CO2, CH4 and N2O) deriving from power generationand Scope 3 deriving from the generation of electricity purchased and sold to end customers, measured in grams ofCO2eq per kWh.

• Definition/Methodology: metric calculated as the combination of Group Scope 1 greenhouse gas emissions (in-cluding CO2, CH4 and N2O) (measured in gCO2eq) and Group Scope 3 greenhouse gas emissions deriving from thegeneration of electricity purchased and sold to end customers (measured in gCO2eq) (which represents an elementof subcategory “3-Fuels and activities connected to power” of the “GHG Protocol-Scope 3 standard”), divided into
power generation (measured in kWh) and purchased electricity (measured in kWh). The methodology is defined anddetailed in the documentation for pertinent Sustainability-Linked transactions and in line with the GHG Protocol.
• Rationale: KPI #2 covers all electricity sold by Enel to its end customers, obtained both from Enel’s own generationand from electricity purchased from third parties.
• Materiality: in 2023, KPI #2 Scope 1 and 3 GHG emissions Intensity relating to Integrated Power represented 60.2%
of Enel’s total carbon footprint, equivalent to 56.7 MtCO2eq, of which Group Scope 1 CO2eq emissions from power
generation represented 34.7%, equivalent to 32.7 MtCO2eq, and Group Scope 3 CO2 emissions from the generation ofelectricity purchased and sold to end customers represented 25.4%, equivalent to 24.0 MtCO2eq.
• Intermediate and long-term goals: in November 2022 Enel announced its goal of reducing the emissions of theabove KPI to 135 gCO2eq/kWh by 2025. In December 2022, SBTi validated the following 2030 and 2040 goals, since it
is in line with the “1.5 °C climate goal” scenario: reduce 100% of direct greenhouse gas emissions (Scope 1) derivingfrom power generation and the production of indirect greenhouse gas emissions (Scope 3) deriving from fuels andactivities connected to power, covering all electricity sold per kWh by 2040 as compared to 2017 (332 gCO2eq/kWh),with a medium-term goal of a 78% reduction by 2030 (73 gCO2eq/kWh). In line with the 2024-2026 Strategic Plan, Enelannounced a new KPI of 135 gCO2eq/kWh by 2026.
• Contribution to the EU environmental goal: Climate Change Mitigation.
• Contribution to the UN sustainable development goals: SDG 13: Take urgent action to combat climate change andits impacts.

Performance del KPI #2 di Enel e relativi SPT
2021(1)(actual)2022(1)(actual)2023(actual)2025(target)2026(target)2030(target)2040(target)KPI #2 Performance

212

210

168

135

135

73

0

Gap vs 2025

77

75

33

Gap vs 2026

77

75

33

Gap vs 2030

139

137

95

62

62

Gap vs 2040

212

210

168

135

135

(1)

0
73

Figure recalculated due to an update of the emission factors of the national electricity systems for 2021 and 2022.

Sustainability-Linked Financing Report 493

c. Enel’s KPI #2 and relative SPT performanceKPI #3: Absolute Scope 3 GHG emissions relating to
Gas Retail (MtCO2eq)
KPI #3: Absolute Scope 3 GHG emissions relating to Gas Retail (MtCO2eq)
Group absolute greenhouse emissions (GHG – Scope 3) deriving from the use of gas sold by the Enel Group to its end
customers (measured in MtCO2eq).

• Definition/Methodology: Group Absolute Scope 3 CO equivalent emissions deriving from the use of gas sold by the2

Enel Group to its end customers, as defined and detailed in the documentation of the relevant Sustainability-Linked
transactions and in line with the GHG Protocol.
• Rationale: KPI #3 supports Enel’s goal of full decarbonization, including the value chain of the Gas Retail business.
• Materiality: in 2023, KPI #3 Absolute Scope 3 GHG emissions relating to Gas Retail represented 17.8% of Enel’s total
carbon footprint, equivalent to 16.8 MtCO2eq.
• Intermediate and long-term goals: in November 2022 Enel announced its goal of reducing the emissions of KPI #3
Absolute Scope 3 GHG emissions relating to Gas Retail, reaching 20.9 MtCO2eq by 2025 and 11.4 MtCO2eq by 2030. In
December 2022 SBTi validated the following 2030 and 2040 goals, in line with the “1.5 °C climate goal” scenario: 100%
reduction of emissions by 2040 and 55% by 2030, with respect to the 2017 value (25.3 MtCO2eq). In line with the 20242026 Strategic Plan, Enel announced a new KPI of 20.0 MtCO2eq by 2026.
• Contribution to the EU environmental goal: Climate Change Mitigation.
• Contribution to the UN sustainable development goals: SDG 13: Take urgent action to combat climate change andits impacts.
Enel’s KPI #3 and relative SPT performance2021(1)(actual)2022(1)(actual)2023(actual)2025(target)2026(target)2030(target)2040(target)KPI #3 Performance

20.0

20.6

16.8

20.9

20.0

11.4

0

Gap vs 2025

-0.9

-0.3

-4.1

Gap vs 2026

0

0.6

-3.2

0.9

Gap vs 2030

8.6

9.2

12.5

9.5

8.6

Gap vs 2040

20.0

20.6

16.8

20.9

20.0

(1)

Figure recalculated due to an update of conversion factors.

494 Sustainability Report 2023

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Letter to stakeholders

2Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

d. KPI #4: Renewable Installed Capacity Percentage (%)

KPI #4: Renewable Installed Capacity Percentage (%)
Percentage of renewable energy installed capacity with respect to total installed capacity (expressed as a percentage).

• Definition/methodology:						Calculation method
Renewable energy installed capacity		(a) MW
Total installed capacity				(b) MW
Renewable installed capacity percentage		(a) / (b) %Terms referring to KPI #4 and SPT #4 are detailed in the documentation of the relevant Sustainability-Linked operations.

• Rationale: KPI #4 supports Enel’s target of complete decarbonization of its technological mix by 2040.
• Materiality: in 2023, KPI #4 Renewable Installed Capacity Prcentage reached 68.2% of the Group’s total consolidated
installed capacity.
• Intermediate and long-term goals: the Group plans on adding approximately +10.8 GW to its installed capacity during2024-2026, in line with reaching the decarbonization objectives aligned with the Paris Agreement. Consolidated renewable capacity is expected to reach 74% of the Group’s total in 2026.
• Contribution to the EU environmental goal: Climate Change Mitigation.
• Contribution to the UN sustainable development goals: SDG 7: Ensure access to affordable, reliable, sustainable, andmodern energy for all.
Enel’s KPI #4 and relative SPT performance

KPI #4
Performance2021(actual)2022(actual)2023(actual)2024(target)2025(target)2026(target)2030(target)2040(target)

57.5%

63.1%

68.2%

69.0%

73.0%

74.0%

80.0%

100.0%

Gap vs 2021
Gap vs 2022

5.6%

Gap vs 2023

10.7%

5.1%

Gap vs 2024

11.5%

5.9%

0.8%

Gap vs 2025

15.5%

9.9%

4.8%

4.0%

Gap vs 2026

16.5%

10.9%

5.8%

5.0%

1.0%

Gap vs 2030

22.5%

16.9%

11.8%

11.0%

7.0%

6.0%

Gap vs 2040

42.5%

36.9%

31.8%

31.0%

27.0%

26.0%

20.0%

Sustainability-Linked Financing Report 495

e. KPI #5: Proportion of Capex aligned to the EU taxonomy (%)

KPI #5: Proportion of Capex aligned to the EU taxonomy (%)
Proportion of the Capital Expenditure (from now Capex), during a certain period, in activities that are qualified as sustainable from an environmental point of view based on the criteria specified in article 3 of the regulation on EU taxonomy(2020/852) (expressed as a percentage).

• Definition/methodology:								Calculation
Capex aligned to the EU taxonomy				(a) EURbn
Total Capex according to the requirementsof Article 8 of the regulation on EU taxonomy (2020/852)		
(b) EURbn
Proportion of Capex aligned to the EU taxonomy			(a)/(b) %Terms referring to KPI #5 and TSS #5 are detailed in the documentation of the relevant Sustainability-Linked operations and in the consolidated non-financial reports/annual report.

• Rationale: KPI #5 supports Enel’s target of complete decarbonization of its technological mix by 2040.
• Materiality: the passage to zero greenhouse gas emissions by 2040 will require Enel to make huge investments overthe next two decades. The share of Enel investments in capital expenses aligned to the EU taxonomy shows to what
extent Enel is investing in a carbon-free business model. In 2023, KPI #5 Proportion of Capex aligned to the EU taxonomy (%) amounted to 84.8%.
• Intermediate and long-term goals: in November 2022 Enel announced its goal of aligning at least 80% of its investments in capital expenses during 2023-2025 with the EU taxonomy. In line with the 2024-2026 Strategic Plan, theGroup confirmed the same target for the period 2024-2026.
• Contribution to the EU environmental goal: all six of the environmental goals defined in the regulation on EU taxonomy, with particular attention to the Climate Change Mitigation.
• Contribution to the UN sustainable development goals: SDG 13: Take urgent action to combat climate change andits impacts.
Enel’s KPI #5 and relative SPT performance

KPI #5 Performance

496 Sustainability Report 2023

2021
(actual)2022(actual)2023(actual)2023-2025(target)2024-2026(target)

82.0%

81.9%

84.8%

>80%

>80%

1

Letter to stakeholders

4.

2
Enel’s commitment
to sustainable development

3

Stakeholder engagement andmateriality analysis

4

Performance 2023

5

Appendix

Verification on Enel’s KPI performance

I. KPI #1 performance
At December 31, 2023, the amount of KPI #1 emissions
Scope 1 GHG emissions Intensity relating to Power Generation (gCO2eq/kWh) is equal to 160 gCO2eq/kWh.
The Assurance Report of KPMG, as the external verifier ofEnel, of KPI #1 Scope 1 GHG emissions Intensity relating toPower Generation (gCO2eq/kWh) is available at pages 466471 of this Report.

II. KPI #2 performance
At December 31, 2023, the amount of KPI #2 emissions
Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh) is equal to 168 gCO2eq/kWh.
The Assurance Report of KPMG, as the external verifierof Enel, of KPI #2 Scope 1 and 3 GHG emissions Intensity
relating to Integrated Power (gCO2eq/kWh) is available atpages 466-471 of this Report.

III. KPI #3 performance
At December 31, 2023, the amount of KPI #3 emissions
Absolute Scope 3 GHG emissions relating to Gas Retail(MtCO2eq) is equal to 16.8 MtCO2eq.

The Assurance Report of KPMG, as the external verifier of Enel,of KPI #3 Absolute Scope 3 GHG emissions relating to Gas
Retail (MtCO2eq) is available at pages 466-471 of this Report.

IV. KPI #4 performance
The percentage value of KPI #4 Renewable Installed Capacity Percentage (%) at December 31, 2023, is equal to 68.2%.
Renewable energy installed capacity
Total installed capacity
Renewable Installed Capacity Percentage

Calculation method(a) 55.536 MW(b) 81.417 MW(a) / (b) 68.2%

The Assurance Report of KPMG, as the external verifier ofEnel, of KPI #4 Renewable Installed Capacity Percentage isavailable at pages 466-471 of this Report.

V. KPI #5 performance
The percentage value of KPI #5 Proportion of Capexaligned to the EU taxonomy (%) at December 31, 2023 isequal to 84.8%.
Capex aligned to the EU taxonomy
Total Capex according to the requirements ofArticle 8 of the regulation on EU taxonomy (2020/852)
Proportion of Capex aligned to the EU taxonomy

Calculation method(a) [12,097] mil euros(b) [14,247] mil euros(a)/(b) [84.8]%

The Assurance Report of KPMG, as the external verifier ofEnel, of KPI #5 Proportion of Capex aligned to the EU taxonomy is available at the following link https://www.enel.
com/investors/sustainability.

Sustainability-Linked Financing Report497

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