OPEN
POWER
FOR A
BRIGHTER
FUTURE.
WE EMPOWERSUSTAINABLE
PROGRESS.

Sustainability Report
2022
Consolidated Non-Financial Statement prepared in accordancewith Italian Legislative Decree 254/16_year 2022

We live in an increasingly interconnected world
where the companies that will continue to thrivein the long run will be those able to act collectively,
creating and sharing value with all stakeholders.
This is what the graphic design of the Enel Group's
Corporate Reporting expresses through the developmentof connected and balanced forms. Elements inspiredby nature, whose movement offers a narration of harmony,
growth and evolution.

OPEN
POWER FOR A 
BRIGHTER 
FUTURE.

WE EMPOWER SUSTAINABLE 
PROGRESS.

Sustainability Report
2022
Consolidated Non-Financial Statement prepared in accordancewith Italian Legislative Decree 254/16_year 2022

Enel is Open PowerVISIONPURPOSE

Open Power to tackle someof the world’s biggest
challenges.

POSITIONINGOpen Power

4

Sustainability Report 2022

PRINCIPLES OF CONDUCT• Make decisions in daily activities and takeresponsibility for them.
• Share information, being willing to collaborate
and open to the contribution of others.
• Follow through with commitments, pursuing activities
with determination and passion.
• Change priorities rapidly if the situation evolves.
• Get results by aiming for excellence.
• Adopt and promote safe behavior and move proactively
to improve conditions for health, safety and well-being.
• Work for the integration of all, recognizing and leveraging
individual diversity (culture, gender, age, disabilities,
personality, etc.).
• Work focusing on satisfying customers and/or coworkers,
acting effectively and rapidly.
• Propose new solution and do not give up when facedwith obstacles or failure.
• Recognize merit in co-workers and give feedback
that can improve their contribution.

MISSION• Open access to electricity
for more people.
• Open the world of energy
to new technology.
• Open up to new uses of energy.
• Open up to new ways of managing
energy for people.
• Open up to new partnerships.

VALUES• Trust• Proactivity• Responsibility• Innovation

Enel is Open Power5

IndexLetter to
stakeholders

1.
8

It starts with a message to stakeholders from the
CEO and the Chairman, followed by the We empower
sustainable progess section, which outlines the Company
as a whole, its business model and main performanceindicators, the ESG context in which it operates, themateriality analysis, the main objectives of the 2023-2025
Sustainability Plan, its governance and organization ofsustainability, the role of sustainability-linked finance,
its positioning in sustainability ratings, indices andbenchmarks, as well as information on European
taxonomy.
The Our performance section is divided by topic andoutlines 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 progress and contribution to theUnited Nations Sustainable Development Goals (SDGs).
The final appendix sets out: (i) the criteria used in drafting
the report; (ii) the main quantitative indicators relating tosustainability performance (“Sustainability Statement”);iii) the Content Indexes which provide simplified keys tointerpretation in relation to GRI, SASB, TCFD, WEF, PAI
and human rights; (iv) the European Taxonomy reporting,
the Green Bond Report and the Sustainability-Linked
Financing Report.

60 years of futureand energy
COMPANY VIEW

Enel’s Sustainability Report sets out
the commitments and results achievedin ESG (Environmental, Social andGovernance) topics, in light also of its
stakeholders’ expectations

We empower
sustainable progress• Integrated Annual Report 2022

2.
10
2.1 Our sustainable businessmodel and value creation

13

2.2 Our strategy forsustainable progress

18

2.3 Our governanceof sustainability

29

2.4 Our materiality analysis
and priorities for action

34

2.5 Our commitment
to continuous improvement

36• Sustainable investments

36• Sustainability-linked finance 37• European Taxonomy
Regulation 

39• Sustainability ratings,
indices and benchmarks

42• Advisory panel 44• Report and financial statements
at December 31, 2022

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Sustainability Statement

Materiality
analysis

3.
46

Materiality analysis process
and results for 2022 

48

Our
performance

4.

5.

Appendix

446

4.1

Zero emissions ambition 84

5.1 Methodological note

4.2

Clean electrification 158

4.3

448

• Renewable energies

168

5.2 Sustainability Statement:
performance indicators 456• Digitalization
of grids

170

5.3 Content Index

• Electrification of uses 

172• GRI 500

Our commitment
to a just transition: leaving
no one behind 188

• SASB510• TCFD

513

4.4

Empowering Enel people208

4.5

Sustainable supply chain 236

4.6

Engaging communities250• WEF

515• SUSTAINABLE FINANCEDISCLOSUREREGULATION (PAI)

517• HUMAN RIGHTS

523

5.4 Our position on andcommitment to theEuropean Taxonomy

528

4. 7 Innovation 264
4.8

Digitalization276

4.9

Circular economy290

4.10 Conservationof natural capital304

Other documents• Preserving biodiversity 319
• Reducing pollution 332
• Using water responsibly 334
• Managing waste

500• EUROPEAN COMMISSIONGUIDELINES ON REPORTING
CLIMATE-RELATEDINFORMATION514

339

Green Bond Report

564

Sustainability-Linked
Financing Report

580

4.11 Managing human rights 348
4.12 Occupational
health and safety376
4.13 Sound governance388• Enel shareholders 390• Corporate governancemodel

392• Enel Group risk governancemodel 396

Peopletur
Na e• Values and pillars of corporate
ethics 
411
413

Zer
o

• Data protection 

4.14 Tax transparency416

issions
em

o

w

th

Ac c ele

r

s

ma

ht

Hu

G ro

Our strategy forsustainable progress

o rs

n

a m b itiat

TOPIC VIEW

82

n rig

Letter tostakeholders
60 years of futureand energy
2-22

Dear stakeholders,This year, we’re celebrating 60 years of
Enel: a company created to unite Italy andits energy. It now leads the international
revolution in renewables and digital grids. We
are conducting that revolution sustainably
and innovatively, to decarbonize energy
generation and to electrify consumption,
promoting a just transition.
The year 2022 was another of great
turbulence, characterized by converging
crises: the continuation of the pandemic,
the effects of climate change, economic
uncertainty, dramatic conflicts that caused
tensions in the energy commodity market
and contributed to the exacerbation of
inequalities and volatility in the supply chain.
The context has clarified the need to shift toan approach not limited to resistance during
discontinuities, but able to innovate radicallyand constantly, anticipating and guiding
the now-constant changes, to progressively
reduce the business-related risks over time
and to produce greater economic and social
value.
Enel has been adopting this approach foryears: it has reduced dependence on fossil
fuels and supplies from individual countries,
decarbonized its energy generation,
digitalized infrastructure, electrified
consumption and created an innovation
ecosystem, involving over 500,000 people

8

Sustainability Report 2022

from different countries, universities andabout 600 startups. We can therefore
monitor technological discontinuities andsocial inequalities and innovate to transformthem into a source of competitive advantage,
rather than merely undergo them.
A concrete example of this approach is the
expansion of 3SUN in Italy. By 2024, it is due
to become the largest solar panel factory inEurope, with a production capacity of 3 GW
per year, and will use a world-first innovativetechnology with a replicable business model,
which will be useful to strengthen our
independence in the value chain.
Our ability to innovate has also enabled us tocreate Gridspertise, a company that assists
other global operators in the digitalizationof distribution networks. Gridspertise wasestablished as a result of the innovations
generated by collaborating with startups andleaders from other sectors. Together withthem, we have created QEd, a revolutionary
solution to digitalize various hardware
components in the grid, thus saving costs
and raw materials.
Other examples are innovations in thestorage sector, such as the completion in
Tuscany in 2022 – with the collaborationof an Israeli startup – of the first thermal
storage system in the world based oncommon stones, with no dependence on
critical raw materials or use of chemicalcomponents.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

AppendixMichele CrisostomoFrancesco Starace

Chairman

Chief Executive Officer
and General Manager

To increasingly free ourselves from fluctuations in theprice of commodities, in 2022 we accelerated thedecarbonization of power generation, continuing
the development of new renewable capacity and thedecommissioning of fossil plants, such as the Bocamina
II coal-fired power plant in Chile. Its recent closure means
we have become the first electricity company to no longer
use coal in the country.
From photovoltaic panels to mini-wind farms, multiple
technologies can assist in improving the reliability of theenergy system. Customers can also become producers
or can reduce the cost of energy, accelerating the path
towards an electrified future. We remained the leader indemand response, with 8.5 GW of capacity managed forenergy consumption. Electrification also entails electric
mobility, which we are supporting by expanding theinfrastructure, with 22,600 owned public charging points
installed globally in the last year, and with the developmentof new technologies and flexible services to improve thecustomer experience.
Another key element of our ecosystem is the morethan 172,000 suppliers, thanks to which we caninnovate and make our value chain more and more
decarbonized and sustainable. We are supporting them
towards a sustainable growth that can increase theircompetitiveness and efficiency, by means of tangible
development initiatives and access to services atadvantageous conditions.
Constant dialog with the communities in the countries
where we operate enables us to jointly construct projects

and solutions that respond to common priorities, promotelocal development and result in the creation of sharedvalue in the long term. In 2022, there were already around5 million global beneficiaries of our projects to foster
sustained, inclusive and sustainable economic growth.
In Italy, we’ve been focusing on students leaving school
too soon, on access to the world of work for the newgenerations and on training in the new skills requiredby the energy transition, including via the circularity ofprofessions linked to the previous energy model, throughreskilling and upskilling programs. The School4Life
project – intended to support students and teachers toprevent early school leaving – will involve about 15,000
students in the two years from 2022 to 2023, whereas
the Energie per Crescere (Energy for Growth) program,extended in early 2023 from the grids to the renewablegeneration sector, will provide technical training to 5,500
young people.
A key element in the strategy is our people: now as muchas throughout the 60 years of our history, they design the
future of energy systems, with dedication and spirit ofservice even at the most difficult times and in the mostextreme conditions.
Our people have understood – and have helped others
to understand – the great value of the resource wework with, and the necessity to use it efficiently andresponsibly. By sharing our purpose of “Open power for abrighter future” on a broader scale, we commit to making
the energy system more and more safe and sustainable
for our stakeholders.

Letter to stakeholders

9

COMPANY VIEW

2.

10

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

We empower
sustainable progress
We were founded 60 years ago
to bring energy to the territories and communities,
the same mission we have today but expanded byinnovation, sustainability, and a reliable businessmodel.
We aim to contribute to an affordable, secure andsustainable energy system
by accelerating the decarbonization of our power
generation, strengthening the role of distribution
networks and creating products and services thatmake energy transition more effective and simpler
in our customers' day-to-day.
We have outlined a sustainability strategy
supporting the United Nations' 17 Sustainable
Development Goals
with 4 out of the 17 goals guiding our value creation:
SDG 13 “Climate Action”; SDG 7 “Affordable andClean Energy”; SDG 9 “Industry, Innovation andInfrastructure”; SDG 11 “Sustainable Cities andCommunities”.
We commit to a daily continuous improvement
individually and collectively: people andcommunities, business, industries and institutions,leveraging growth accelerators (innovation,
digitalization, circular economy and sustainabilitylinked finance).

11

We empower
sustainable progress
2-1

2-6

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

In 2022 Enel celebrated its first 60 years: we werecreated to bring energy to the territories andcommunities, the same mission we have today but
expanded by innovation, sustainability, and a reliablebusiness model. As a result of the challenge of tacklingclimate change and the increasing digitalization of the
traditional business models of companies in the energy
sector, our mission has evolved in order to embrace new
ways for making energy accessible thus empowering
sustainable progress.
The current relevance of the climate change challenge,
the repeated occurrence of extreme events, a high rateof loss of biodiversity and ecosystemic services need tobe carefully addressed both in terms of preventing themto happen and of adapting to a changing climate.
The pandemic and the geopolitical conflicts haveworsened the situation and unveiled how much individual
countries and regions are intrinsically and structurally
weak while making clear that energy independence andachievement of climate objectives require an accelerationof energy policies and a new design of the electricity
market to promote the energy transition. By doing so, inthe long-term, access to energy will happen at affordable
and stable prices, will be secure since it will not be

12

Sustainability Report 2022

EU1

EU2

EU3

EU4

impacted by geopolitical conflicts, and will be sustainable,with no adverse effects on climate and ecosystems.
These are key years to achieve the UN 2030 agenda, theParis Agreement climate objectives and the KunmingMontreal agreement to stop and invert the trend of
biodiversity loss. These objectives can only be reached bygiving a push to decarbonization and clean electrificationof end-uses, sustained by business models based on
circular economy and open to continuous innovation.
Our contribution to an affordable, secure andsustainable energy system leads us, therefore,
first of all to accelerate the decarbonization of
our energy generation, as a result of renewables
development, utilization of storage and phase-out ofthermal generation. In parallel, we will strengthen our
distributions grids whose role is to enable the undergoingenergy transition, also thanks to digital solutions that
accomodate larger volumes of renewable energy, so as
to make them more resilient, sustainable and open to all
stakeholders in electrification. Finally, we are developing
effective and easy-to-use products and services for ourcustomers since the change involves all of us, individuallyand collectively: people and communities, companies,
industries and institutions.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

We have been confirmed as a leading group in the energy
sector, with a presence in 47 countries on five continents,
vertically integrated along the entire value chain.

47countries

more than

1,000

PRESENCE

Our sustainable business modeland value creation
Subsidiaries

65,124

Enel employees

Our purpose, mission, vision and values animate the entire organization and define the aim of the Company itself.
“Open Power for a brighter future: we empower sustainable progress”, which expresses our daily commitment, thevery reason why our people are motivated. Being OpenPower means improving everyone’s future, pursuing a sustainable progress that leaves no one behind and leaving abetter planet to future generations.
Being Open Power means facing some of the biggest
world challenges by combining sustainability and innovation. Open Power means unleashing access to energy: ourmission is to connect an increasing number of people tosecure and sustainable energy, opening up to new technologies and partnerships, new uses and ways to manage
energy itself, while respecting our fundamental values:
trust, responsibility, innovation and proactiveness.
Our business model is the growth engine. We are active along
the full value chain through Business Lines having each a
specific focus. We are the world’s largest private operator in
the renewable energy sector with 53.6 GW(1) of net efficient
renewable capacity, equal to 63.3% of the entire generation(1)

capacity (Enel Green Power and Thermal Generation). We
are the largest private electricity distribution company in theworld (Enel Grids), with approximately 72.7 million end users
connected to our networks, including 45.8 million with active
smart meters. We also manage the largest customer base ofany private company (Enel X Global Retail), with approximately 66.7 million customers. In order to increasingly promoteelectrification of uses, we develop and sell new services andproducts (e-Mobility Enel X Way), like electric mobility public charging point that currently exceed 22.6 thousand. To
guarantee a stable energy supply, we operate in more than
30 countries in wholesale energy markets, and this ensures
strategic and sustainable services to our customers (Global
Energy & Commodity Management).
Business is supported by the Global Service Functions(Procurement, Digital Solutions and Global Customer Operations) and Staff Functions (Administration, Finance andControl, Innovation and Sustainability, People and Organization, Communications, Legal and Corporate Affairs,
Audit), with every Country combining the global businessmodels with specific local requirements.

If we include managed renewable capacity and BESS in 2022, 59 GW of installed capacity or 66% of total capacity was reached.

Our sustainable business model and value creation

13

Business Lines:

Integrated value chain

Global Power Generation

Raw materials

Enel Grids
RetailBusiness partners

Enel X
Enel X Way
Trading

Electricity generation

TOTAL NET EFFICIENTINSTALLED CAPACITY-2.9%

84.6 GW

87.1 in 2021

NET EFFICIENTINSTALLED
RENEWABLE
CAPACITY+5.8%

63.3 %

57.5% in 2021

Networks
ELECTRICITY
DISTRIBUTION AND
TRANSMISSIONNETWORKSEND USERS-9.4%

Products andservices

RETAIL CUSTOMERS-3.7%

66,784,895.

69,342,818 in 2021

8.5 GW

72.7 mil

75.2 mil in 2021

Energy efficiency

7.7 GW in 2021
E-BUS
+76.7%

5.3 thousand

End-of-Life Management

3.0 thousand in 2021

Every day our commitment is to develop a just and inclusivetransition that creates value wherever we operate. We work
jointly with our stakeholders (Enel people, suppliers and financial and commercial partners, communities in the areasof influence of our operations, our customers, the financial
community, institutions, media, business and sector associations) since we are aware that we belong to the territory
and we are an essential element in the lives of people, business and society at large. We strive to combine our industrial
objectives with the socio-economic development of our ar-

14

2,233,368 km in 2021

+9.9%

+24.9%

22.6 thousand

2,024,038 km

DEMAND RESPONSEOWNED PUBLIC
CHARGING POINTS

18.1 thousand in 2021

-3.4%

Sustainability Report 2022

eas of operation, building solid and positive relationships toachieve sustainable and long-lasting outcome. We engage
our stakeholders by levering the Open Power approach as
defined both in our Code of Ethics and in our Human Rights
Policy, and walking the talk through several solid initiatives. A
continuous dialog with the individual stakeholders and withthe organizations that represent them, which is summarizedalso in the results of the materiality analysis process that allows us to identify the priority actions and our contribution
to the United Nations Sustainable Development Goals (SDGs).

1

Letter to stakeholders

Stakeholders

PlanetEnel people

2

We empower sustainable progress

2022

3

Materiality analysis

INPUT

2022

OUTPUT
Intensity of GHG Scope 1
emissions relating to power
generation

0.23 (l/kWheq)

Total specific freshwater
withdrawal

218 gCO2eq/kWh

Intensity of GHG Scope 1 and 3
emissions relating to Integrated
Power

19.3%

Water withdrawal in water
stressed areas

22.9 MtCO2eq

Scope 3 emissions (gas retail)200 No.

Projects for the protection of
species and natural habitats

0.07 g/kWhSpecific emissions of SO2

26.5 Mtep

Total direct fuel consumption

0.32 g/kWhSpecific emissions of NOx

45.2 Mm3

Total water consumption

20.6%

Water consumption in water
stressed areas

9,452 haArea covered by natural habitat
restoration projects

65,124 No.

Enel people

6.8%

Turnover24.9%

Proportion of women managers tototal managers

0.56 i.

Lost Time Injury Frequency Rate

32.6%

Proportion of women middle
managers to total middle
managers

47.4 averagehours

Training per employee

42%

Training dedicated to reskillingand upskilling

Applications of the shared value
creation model (CSV)(1)

15.6 milBeneficiaries - Access to clean
and affordable energy(2)4.9 mil

Beneficiaries - Decent work andeconomic growth(2)3.7 mil

Beneficiaries - Quality education(2)4,778 mil €Total Tax Borne

95.7%

Cooperative Compliance Index

172,854 No.

Suppliers (FTE)99%

Suppliers qualified for ESG
aspects

20,435 No.

Active suppliers

62%

Supplies value covered by CFP
certification

0.48 i.

Lost Time Injury Frequency
Rate

45.8 milEnd users with active smart
meters321 TWh

Electricity sold37%

Digital clients

212 No./10k
customers

Commercial claims

231 min.

SAIDI

0.7 mil

Beneficiaries of new connections
in rural and suburban areas

194 No.

Proof of Concept

60 No.

Solutions adopted in the business43 No.

Partnership agreements forinnovation

22.6 thousand No. Owned public charging points

10 No.

Innovation hubsPartners(2)

Appendix

229 gCO2eq/kWh

Customers(1)

5

Net electricity generation

Community

Financialcommunity

Our performance

227.8 TWh

1,527 No.

Suppliers

460,068 mil €Net financial debt

0.40 €/share

Fixed dividend per share (DPS)

63%

Sustainable sources of financing
on total

3.3%

Cost of gross debt

81.9%

Investments in business activitiesaligned with the European
Taxonomy Regulation

56.7%

EBITDA related to businessactivities aligned with theEuropean Taxonomy Regulation

An application is interpreted as the use of at least one CSV instrument in relation to an asset, in any phase of the chain of value and in any Business Line. The CSV applicationsin the BD phase include applications regarding BD opportunities (also at the beginning phases) and business projects output from the pipeline. They can also relate to assets in
O&M in the case of modernizing projects or decommissioning activities. The CSV applications in the E&C phase can refer to assets passed to the O&M phase at the end of theyear. The number of CSV applications in Infrastructure & Networks (I&N) may refer to the concession area, but also areas identified by municipalities and substations. The value
includes companies consolidated using the equity method and companies for which the Build, Sell and Operate (BSO) mechanism has been applied.
Cumulative figures since 2015.

Please refer to the related chapters in this document and to the
Sustainability Statement to see the progress of these data.

Our sustainable business model and value creation

15

With the planet: we are committed to defining measuresand actions for mitigating the impacts generated byclimate change, including the loss of biodiversity andthe disappearance of ecosystems, to guarantee asafe, healthy, clean and sustainable environment forthe protection of rights of human beings and future
generations (please refer to the chapters “Zero emissions
ambition” and “Conservation of natural capital”).

With suppliers: we face the challenges of transitionand support their path of change and growth,sharing ideas and innovations (please refer to chapter“Sustainable supply chain”).

With customers: we analyze their needs to ensure reliable
responses and establish lasting relationships, committing
ourselves to offering sustainable solutions and services
that are affordable, innovative, flexible and attentive to themost vulnerable to ensure equal access to energy (pleaserefer to chapter “Clean electrification”).

With the financial community: we maintain a constantand open relationship, based on principles of integrity
and transparency, in compliance with the rules and bestpractices, in order to increase the level of understandingof the activities carried out by the Group (please refer tothe “Sound governance” chapter).

With people in the Company: we are committed tohaving 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 and businessentrepreneurship to face the challenges posed by aconstantly changing context (please refer to chapter“Empowering Enel people”).

With our partners: through openinnovability.com, acrowdsourcing platform, the different areas of the Groupcan interact with startups, industrial partners, small andmedium-sized enterprises (“SMEs”), research centers,
universities and entrepreneurs, to deal jointly with thechallenges of the future and guarantee sustainable
progress for all (please refer to chapter “Innovation”).

With communities: we work together to draw up specificaction plans and projects intended to promote accessto energy, fighting energy poverty, supporting quality
education and socio-economic development, startingfrom a proactive analysis of their needs through a sharedvalue creation model (please refer to chapter “Engaging
communities”).

16

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Economic value generated and distributed
for stakeholders
3-3

201-1

Millions of euro2022

2021(1)

140,82185,865

114,384

62,063

Personnel expenses and benefits

3,646

4,296

Payments to providers of capital (shareholders and lenders)

7,691

7,409

Payments to government

6,027

4,916

131,748

78,684

9,073

7,181

Economic value generated directly
Economic value distributed directly
Operating expenses(2)

Economic value retained(1)

The figure for 2021 has been adjusted, for comparative purposes only, to take account of the classification under the item “Profit/(Loss) from discontinued
operations” of profit/(loss) connected with the assets held in Russia (which were sold in the 4th Quarter of 2022), Romania and Greece as the requirementsof IFRS 5 for their classification as discontinued operations have been met.
(2) The amount includes “total tax borne”, which is costs for taxes borne by the Group. For more information, see the 2022 Sustainability Report and the Consolidated Non-Financial Statement. The figure for 2021 has been adjusted on the basis of more accurate information.

The economic value generated and distributed directly by
Enel provides a useful indication of how the Group has created wealth for all stakeholders. The increase in the economic value generated directly and the operating costs
was caused mainly by the increase in the average prices
and intermediate volumes of energy commodities, in par-ticular gas and electricity. The payments to capital lenders
are increasing essentially due to the increase in interest
expense, mainly related to the increase in the interest rates
following the restrictive monetary policies that were implemented to face the growing inflationary pressure.

.

Our sustainable business model and value creation

17

Our strategy forsustainable progress
The strategy developed in recent years has enabled theGroup to set out a vision of the future and progress centered on sustainability as a key factor in addressing the
global challenges of the transition to a decarbonizedeconomy.
A sustainable strategy and an integrated business modelthat enable us to contribute to achieving all 17 United Nations Sustainable Development Goals.

18

Sustainability Report 2022

In particular, 4 of the 17 goals guide our creation of value:• SDG 13 “Climate Action”;• SDG 7 “Affordable and Clean Energy”;• SDG 9 “Industry, Innovation and Infrastructure”;• SDG 11 “Sustainable Cities and Communities”.

1

Letter to stakeholders

2

We empower sustainable progressMateriality analysis

4

Our performance

SDG 13.2

SDG 7.2

Integrate climate change
measures into national policies,
strategies and planning

Increase substantially the share
Develop quality, reliable,of renewable energy in the global sustainable and resilient
energy mix.
infrastructure, including regional
and trans-border infrastructure,
to support economic
development and human wellbeing, with a focus on affordable
and equitable access for all.

The focus
of ourcontribution

SDG 9.1

SDG 9.4

SDG 11.2
Provide access to safe,
affordable, accessible andsustainable transport systems for
all, improving road safety, notably
by expanding public transport,with special attention to theneeds of those in vulnerable
situations, women, children,
persons with disabilities andolder persons.

Enel’s main contribution to SDG 7
focuses on the decarbonizationof the generation mix, withthe progressive developmentof renewable energy, taking
advantage of the hybridizationof renewables with storage
solutions, and the concomitant
exit from electricity generationfrom thermal capacity

The digitalization and upgradingof grids are key objectives toensure the reliability and securityof the energy system. Grids
flexibility and capacity allow
to handle an increasing shareof distributed generation andthe increase in the number ofconnections with new users

We develop innovativetechnologies to make the useof clean electricity increasingly
accessible and widespread,accelerating the digitalization ofservices for greater efficiency inthe use of energy itself.
In homes (B2C) through a focus
on residential consumption (e.g.
heat pumps for home heating andinduction plates), with businesses(B2B) by guiding them towards
the use of customized integrated
solutions, starting with consultancy
up to the implementation ofsolutions such as self-productionof electricity, installation oftrigeneration plants, and in the
public sector (B2G)we promote theuse of a circular model for cities,
accompanying them on a path ofelectrification and digitalization,
through the integration ofsolutions aimed at efficiency andthe improvement of services forthe benefit of households and the
reduction of polluting emissions.
Furthermore, the expansionof electric vehicle charging
infrastructure for Enel is one of themain drivers for the electrificationof end-use consumption.

• Reduction in GHG Scope 1
emissions intensity relating topower generation(1): -80% in
2030 vs 2017• 21 GW additional renewablecapacity in the period 20232025, of which ~ 4 GW Battery
Energy Storage System (BESS)• Improve service quality by
reducing the average durationof system interruptions: SAIDI~150 min. in 2025

• Instal 31.4 thousand owned
public charging points in 2025

• Reduction of GHG emissions
intensity Scopes 1 and 3 relating
to Integrated Power(1): -78% in
2030 vs 2017

• 70% energy production fromrenewable sources in 2025

• Improve demand response
solutions: 12.4 GW in 2025

• Exit from coal-fired generation
by 2027 and gas-fired
generation by 2040
• Exit from gas retail by 2040,
100% sales from RES by 2040
• Enel Capex Plan fully alignedwith the target• Achieve 48.3 mil users withactive smart meters in 2025

• Reduction in absolute GHG
Scope 3 emissions relating to
Gas Retail: -55% in 2030 vs 201713

Enhance inclusive andsustainable urbanization andcapacity for participatory,
integrated and sustainablehuman settlement planning andmanagement in all countries.

• Serve approximately 13
thousand electric buses in
2025• Manage 3.3 mil lighting points(street lighting) in 2025
• 4,000 municipalities
connected on the YoUrban
platform in 2025
• 352 MW storage behind themeter in 2025

• >80% of investments (Capex)
planned for 2023-2025 alignedwith the European Taxonomy
Regulation(1)

Appendix

SDG 11.3• Development of new RES
capacity to have 100%
renewable generation facilities
by 2040

Our goals

5

Upgrade infrastructure andretrofit industries to make themsustainable, with increased
resource-use efficiency andgreater adoption of clean
and environmentally soundtechnologies and industrial
processes, with all countries
taking action in accordance with
their respective capabilities
Enel’s decarbonization roadmap
covers both direct and indirectemissions along the Group's
entire value chain, and consistsof four targets certified by the
Science Based Targets initiative(SBTi), in line with limiting global
warming to 1.5°C.

Our actions

3

7

9

11

~94%

Capex aligned with SDGs in the period2023-2025

Values of reduction percentages were calculated on an equal perimeter basis, and take into account the 2017 baseline from which GHG emissions from
disposed assets from 2017-2022 are excluded, in accordance with SBTi.

Our strategy for sustainable progress

19

The Sustainability Plan: our commitment
digitalization, circular economy and sustainable financeOur sustainability strategy is embodied in our Sustainact across all sectors and accelerate growth. A pathway ofability Plan, defined taking into account the results of thesustainable growth that is taken in respect of nature andmateriality analysis, in synergy with the Strategic Plan, andof human rights, with the support of a sound governancetranslated into specific short-, medium- and long-term
structure.
goals in order to ensure the transparency and verifiability of our journey towards sustainable progress. Every year,
The Sustainability Plan 2023-2025 reinforces our decarthese objectives are updated in accordance with a process
bonization commitment, considering all Group emissionsof continuous alignment with the business strategies, withand confirming our commitment to achieving “No Net
the results achieved and best practices in order to increasLoss” in terms of biodiversity in the development of new
ingly integrate sustainability along the entire value chain.
infrastructure from 2030, focusing in particular on areas of
At the heart of our sustainability strategy is our ambitionhigh biodiversity importance, with respect to forest conto achieve zero emissions by 2040, thanks to a sustainable
Throughmodela sustainablebusinessmodel, we aim
to reduce our emissions
to andzerotheby leveraging
servation
preservation of protected areas. A new
business
based onthe developmentof generation
aninnovative
ecosystem
that
takes
into
account
the
needs
of
our
stakeholders,
objective was defined related to the overall well-being offrom renewable sources and facilitated by the security andwith attention
naturewith respectfor humanrights.
Enel people, as a factor enabling the development of innoreliabilityof theto
grid
and andthe cleanelectrificationof con-Sustainability Plan 2023-2025

sumption. In all our activities, we always take into accountthe needs of our stakeholders. In this context, innovation,

vation potential.

Enel People
Customers

Sustainability Plan
2023-2025

Communities

PeopleSuppliers
Financial community
Institutions
Media
Business and trade associations

NatureZero emissions
ambition

Human Rights

GrowthAccelerators

Innovation
Circular economy
Digitalization
Sustainable finance20

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Our commitment to sustainability
Elisabetta Ripa

Antonio Cammisecra

Global E-Mobility

Global Infrastructure & Networks

Global Power Generation“Enel X Way has adopted an integrated
sustainable business approach: We
implement inclusive solutions for every
mobility need, accessible to all, and wedo this by following Circular by Design
logic, which aims to reduce to zero not
only our carbon footprint but also thatof our customers”.

“We invest in research, development
and the use of low-impact
components and innovative solutions
that reuse materials from end-of-life
grid components, involving the entire
supply chain in order to reduce its
emissions to zero”.

“We work passionately every day
to realize our mission ‘To promote
progress with sustainable energy’
by investing in renewable energy
development and innovation
together with our colleagues andpartners and with the communities
that host our plants”.

Francesco Venturini

Claudio Machetti

Nicola Melchiotti

Enel X Global Retail

Global Energy and Commodity
Management“We accompany our customers on asustainable growth path: from simple
consumers to active decision-makers
in energy consumption and generation
choices, capable of seizing economic,
environmental and social opportunities
with commodity-integrated
electrification solutions”.

Salvatore Bernabei“We improve and integratesustainability into our
margin optimization and risk
management processes for theGroup. Anti-fragility researchand collaboration with our
stakeholders is our vision tosustainable progress”.

Global Customer Operations“Turning every interaction into an
opportunity to bring satisfaction
and happiness to our customers.
This is our goal, for which we arefocusing on listening, simplificationand the design of a moresustainable future for each of ourcustomers”.

Guido Stratta
People and Organization“People are the key to enabling theenergy transition. Through continuous
learning, work-life balance, inclusion
and a culture of safety we take careof their well-being and motivation, a
requirement for achieving our goals”.

Ernesto Ciorra
Innovationand Sustainability“Let us work for a fairer and more
inclusive society, creating economic
and social value that fuels progressthat is truly sustainable and open to
everyone!”.

Alberto De Paoli

Francesca Di Carlo

Roberto Deambrogio

Administration,
Finance and Control

Global Procurement

Communications“It is critical for us to include the supply
chain in our sustainability strategy,
sharing measurable goals consistent
with our SBTi-certified decarbonization
road map and stimulating innovation as
a lever for acceleration”.

“For Enel, being sustainable is the
only way to create long-term value.
Sustainability is integrated into
our investments and the Group’s
industrial strategy from the very
beginning, taking into account theneeds of each stakeholder and thus
creating shared value”.

Giulio Fazio

Silvia Fiori

Carlo Bozzoli

Legal and Corporate Affairs

Audit

Global Digital Solutions“Reinterpreting the role of thecorporate lawyer from a sustainable
perspective means creating value forsociety, investors and stakeholders.
And to this end it is crucial not tolimit ourselves to the letter of the law
but to use the regulations to provide
solutions and create opportunities”.

“We have integrated SDGs andsustainability KPIs into our risk
assessment to enable us to assess
the adequacy and effectiveness of therisk control measures in the processes
that also take into account theircontribution to achieving the Group’s
sustainability goals”.

“The great opportunity offeredby digitalization is the essential
factor in implementing the energy
transition and achieving zero
emissions. In the coming years, thefocus will be on sustainable coding
to ensure greater quality, safety andinclusiveness”.

“Sustainability is our starting point andmain purpose. It is the engine of ourbusiness proposition and growth
perspectives. It is a place where
technological evolution, profit and thewealth of people can find a perfectsynthesis without frictions and the pathwhere the old concept of capitalism
is evolving into the new Stakeholder
Capitalism proposition. Our Zero Emission
Ambition plan makes it clear that we know
where we want to arrive and the leadershiprole we want to continue to play”.

Our strategy for sustainable progress21

Zero emissions ambition
Read more...

At the center of Enel’s sustainability strategy lies theambition to achieve zero emissions in 2040, in linewith the goal of limiting global warming to below 1.5ºC. Specific targets, validated by SBTi (Science Based

Targets initiative), have been defined, covering both directemissions generated by our plants and indirect upstream
and downstream emissions produced by our suppliersand customers.

2030

2023-2025

-80%

>80%

reduction of GHG Scope 1 emissions
intensity relating to power generation(compared to 2017)(2)of investments (Capex) plannedfor 2023-2025 aligned with theEuropean Taxonomy-78%

reduction of GHG Scope 1 and 3 emissions
intensity relating to Integrated Power(compared to 2017)(2)-55%

reduction of absolute GHG Scope 3
emissions relating to Gas Retail(compared to 2017)

PROJECT: ADAPTATION: A CLIMATE-PROOF
FUTURE

LegendTarget included in the short- andlong-term remuneration plan for Top Management
Target included in sustainability-linked
financial instruments(2) The values of the reduction percentages have been calculated on an equal perimeter basis, and take into account the 2017 baseline, which excludes GHG
emissions from assets disposed in the 2017-2022 period, in accordance with SBTi.

22

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

AppendixClean electrification
Read more...

The transition to decarbonization is supported by thegrowing development of renewable energies, reaching
53.6 GW(3) of installed capacity in 2022, and by the phaseout of coal-fired generation by 2027 and gas-fired by
2040. It is also supported by an approach to innovation
as an accelerator in the creation of sustainable value,
an example of which is the construction of the 3SUN
Gigafactory photovoltaic panel plant in Catania.

The extension and digitalization of the grids, which have
72.7 million end users, make it possible to accommodate
greater volumes of energy produced from renewablesources and to offer an increasingly high-quality, secureand reliable service. One of the main objectives in thisregard is strengthening our commitment to reducing
the average frequency (SAIFI) and duration (SAIDI) of
interruptions of electricity supply. Furthermore, we arecommitted to further extending access to electricity in ruraland suburban areas in the countries in which we operate,
to communities with no electricity supply, aiming to reach
7.1 million beneficiaries by 2030.

By offering new, innovative and inclusive products andservices, we can accompany our customers on theirjourney to clean electrification and the transformation of
their energy habits in everyday life. We are able to do thisthrough network flexibility and consumption optimization
services such as demand response,(4) but also by bringing

2025

70%

energy production from renewable sources~150 min SAIDI
System Average Interruption
Duration Index (min)31.4 thousands

owned public charging points
PROJECT: SARDINIA: THE PERFECT ISLAND
FOR A SUSTAINABLE MODEL

energy ever closer to our customers, for example
through the development of energy communities.(5) We
also continue supporting the spread of electric mobility,
expecting to reach 31,400 owned public charging points
in 2025 (22,600 in 2022), as well as serving around 13,000
electric buses (over 5,000 in 2022).

(3) Including managed renewable capacity and BESS in 2022, 59 GW of installed capacity or 66% of total capacity was reached.
(4) A digital platform service open to commercial and industrial customers that enables greater network flexibility and stability and more efficient use of infrastructure and energy resources by optimizing consumption.
(5) An energy community consists of an association of citizens, businesses, local governments and small/medium-sized enterprises that decide to join forces
with the aim of producing, trading and consuming energy from renewable sources on a local scale.

Our strategy for sustainable progress

23

PeopleRead more...
The value of the relationships we establish with our
stakeholders is a core focus of our commitment toachieve a just transition, focusing on those most
exposed in the transition to a decarbonized economy.
We promote specific resettlement programs
supported by upskilling and reskilling activities and

we are committed to dedicating 40% of the total
training fund to these programs in 2025. We support
our suppliers on this new journey to repurpose
their resources and skills and we develop projects
and activities at a local level with the communities
involved in the transition process.

For the people who work at the Company, we
are also committed on a daily basis to building an
inclusive working environment in which diversity anduniqueness are valued and individual development isencouraged, including through the further extension
and diversification of the training offer. Our attention isincreasingly focused on the well-being of our people
and on enabling their engagement and innovative
potential: in pursuing this direction, a new goal related tothe overall well-being of Enel people has been defined.
Women in the company account for 23.4% of the total,
thanks to a special focus on gender diversity, which also
in a broader, cultural and generational sense, aims toenhance resources even before they join the company

and throughout all people management processes.
Read more...

Our suppliers are indispensable for us to enhancesustainable progress and realize the process oftransformation of the energy and digital system,encouraging them to commit to a sustainable path. The
basis of our purchasing processes is loyalty, transparency
and collaboration, and we ask our suppliers not only
to guarantee the quality standards required, but also
to commit to adopting best practices in terms ofhuman rights and of the impact of their activity on theenvironment. This commitment is translated into concrete
actions: at the qualification stage, when assessing
suppliers based on social and environmental factors,
when requesting certifications at the tender stage, or in

the application of rankings and/or targets concerning thecarbon footprint of suppliers.
Read more...

24

Sustainability Report 2022

2025

45%

women in Top Manager succession
plans

61%

Overall Global Wellbeing Index
PROJECT: BACK TO SCHOOL

2025

75%

supplies’ value covered by Carbon
Footprint certification
PROJECT: ENERGY FOR SCHOOLS

1

Letter to stakeholders

2

We empower sustainable progress

Responsible relations with the communities where
we operate aim to promote economic and social
development through sustainability projects. From the
expansion of infrastructure to professional education andtraining programs, as well as projects that support culturaland economic activities and promote access to energy,
rural and suburban electrification, tackling energy poverty
and promoting social inclusion for the more vulnerable
categories.
Read more...

3

Materiality analysis

4

Our performance5

Appendix

2015-2030

5 million

beneficiaries of the projects to ensure inclusive andequitable quality education (SDG 4)

20 million

beneficiaries of projects to provide access toaffordable, reliable, sustainable and modern energy(SDG 7)

8 million

beneficiaries of projects to promote sustained,
lasting, inclusive and sustainable economic growth(SDG 8)PROJECT: RUTA PEHUENCHE

Growth accelerators
Read more...

Innovation, circular economy, digitalization andsustainable finance are the growth accelerators of Enel’s

We constantly work on innovation and foster open
collaboration with our partners, including start-ups, SMEs,
large companies, academia, internal and external experts,
and investors. A widespread culture of Innovability®
(innovation and sustainability) means that the whole
Company aims to renew itself continually, thereby
ensuring its survival in the long term. We constantly strive
to find innovative solutions to support environmental
protection but also to create more socially inclusive
conditions.
Read more...

sustainability strategy that embrace and enhance all
strategic themes crosswise.

2023-2025
Scale-up of

126 solutions in the business

445

Proof of Concept
Launch of
to test innovative solutions
PROJECT: NET ZERO GRID

Our strategy for sustainable progress

25

For years, we have been constantly rethinking how we dothings with a circular economy approach, focusing on
innovation not only in technology, but also in businessmodels, involving the entire value chain. Adopting acircular and sustainable model as an integral part of theenergy transition process also allows us to lower ourdependence on raw materials, particularly on “critical”
raw materials, ensuring not only the competitivenessof the business model, but also full social andenvironmental sustainability across the chain. Suffice
to look at the increasing attention to raw materials, thebasis for the production of solar panels and batteries,
a major focus considering the topic of their scarcity
compared to demand.
Read more...

Finally, the energy transition process cannot disregard
aspects such as digitalization and cyber security,
through which the Group is committed to disseminating
the most advanced solutions and to strengthening
verification activities in order to prevent possible cyberattacks (Ethical Hacking, Vulnerability Assessment).
Read more...

2030

92%

Circularity improvement(6)Double Economic CirculAbility©

compared to the baseline year 2020(7)PROJECT: WIND NEW LIFE

2025

1,400

cyber security verification activities per year
(Ethical Hacking, Vulnerability Assessment, etc.)
PROJECT: PLATFORMS

The importance of sustainable finance is growing toaccelerate the achievement of the 2030 Agenda goals,
through investments that link financial strategy to theCompany’s sustainability goals. At Enel, sustainablefinance plays a crucial role in supporting the growth of
the Group, accounting for 63% of the gross debt at theend of 2022 and contributing to a gradual reductionin the cost of debt, through the recognition of thevalue of sustainability. Furthermore, 92% of investments(Capex) in 2022 were aligned with the UN Sustainable
Development Goals (SDGs).
Read more...
2025

~70%

sustainable financing sources (sustainable financeinstruments/total financial instruments)(6) The circularity improvement index measures lower material and fuel consumption of the Group’s plants throughout their life cycle compared to 2015.
(7) The “Economic CirculAbility©” KPI considers the Group’s overall EBITDA (euros) and compares it with the amount of resources consumed, both fuel and raw
materials, by the different business activities (tons).

26

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

NatureRead more...
Protecting natural capital and biodiversity, tacklingclimate change, and contributing to sustainableeconomic development are strategic factors in
the planning, operation and development of ouractivities. From the perspective of the energy anddigital transformation process, mitigating the effects
of increasing environmental degradation and climatechange cannot be achieved without taking into accounttheir social impact and the principles of inclusion andequity. In particular, this translates into an everyday
commitment to the conservation and preservation ofnature and biodiversity, by reducing and mitigating thepotential negative effects on the planet that may result
from various Group activities, to protect current andfuture generations.
The environmental strategy is also strengthened bya circularity approach, which focuses on reducing
the consumption of non-renewable resources andmaximizing the value of those already used and of thegoods produced, by integrating sustainability from thedesign phase to the decommissioning of plants, also
through innovative solutions.

2030
Preservation of biodiversity:

No Net Loss-85%

reduction of specific SO2 emissions-70%

reduction of specific NOx emissions-65%

reduction of specific freshwater withdrawal
PROJECT: BIODIVERSITY TO PROTECT HUEMULIn this context, we have defined specific targets related
to the reduction of emissions (including SO2, NOx),freshwater withdrawal through responsible use of water
resources and waste generated through a structured
management system. We have also committed toachieving No Net Loss in terms of biodiversity for new
infrastructures from 2030, commencing its adoption on
selected projects in areas of high biodiversity importancestarting from 2025.

Our strategy for sustainable progress27

Human rights
Read more...

Our commitment to human rights is reflected in an
integrated, cross-cutting approach that takes into
account the needs of our stakeholders along the entire
value chain. In this way, we promote knowledge and thegrowth of a constructive dialogue that canreally help to effectively address the challenges in termsof the social impact of a decarbonized economy.
Read more...

The protection of health and safety for all those whowork with and for us is a shared responsibility at every
level, through the integration of safety in processes
and training, in the relationship with contractors, inthe management and analysis of accidents and in thecontinuous quality controls.
Read more...

-1%

Injuries with absence from work frequency
rate compared to the previous year(8)PROJECT: ROBOTS AND SAFETY

Underpinning the business processes and activities
in which we are engaged is a sound governanceframework, which enables to guarantee our stakeholders
the application of transparency, fairness and integrity

principles in support of our business model and its
implementation on a daily basis, as well as of our entire
sustainability strategy.
Read more...

In the 2022 Sustainability Report, an overview of all theobjectives in the 2023-2025 Sustainability Plan is provided at the beginning of each chapter, in the dashboards.
For example, the dashboard header represents the link
between the material topics, the issues in the Sustainability Plan and the United Nations Sustainable Development
Goals, to which the objectives related to the specific issue

contribute directly. Each dashboard then presents in detail the 2022 results related to the targets of the previous
2022-2024 Sustainability Plan, the resulting progress andthe targets of the 2023-2025 Sustainability Plan, which
may be redefined, added to, or surpassed with respect tothe previous Plan.

Material topics (I level)

Doublemateriality

Plan

SDG

• Decarbonization of theenergy mix

Zero emissions
ambition(8) This index is calculated by establishing the ratio between the number of injuries (all injuries, also those with 3 days of absence or less) and hours
worked/1,000,000. In line with GRI, the target reported here takes into account calculation methods that are slightly different from what has been included
in Chief Executive Officer's short-term variable compensation, reported in the Report on Remuneration Policy.

28

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Our governanceof sustainability
2-9

2-12

2-13

2-14

2-24

Our governance structure is inspired by international bestpractices in terms of independence, transparency, inclusiveness and accountability, and permeates the various

strategic and operational processes at all levels of theCompany, ensuring effective and efficient management ofactivities in line with the Company’s purpose and values.

Integrating sustainability into company
strategy and processes
For us, sustainability is an essential part of our company
processes and lies at the heart of our strategy to meetthe global challenges of the transition to a decarbonizedeconomy. This integration is possible thanks to structured
processes throughout the Group, starting with an analysisof the context and macro-trends that allows us to assess
economic, social and environmental challenges, analyze
the associatedrisks and seize the2 relative opportunities.
1
Our sustainable progress
Letter to Stakeholders
This in turn allows us to understand the context in which
we operate, supporting our growth and our path towards

sustainable progress. Context analysis is therefore crucial in order to identify the actual and potential impact of
our activities, as well as serving as a guide in the definition and planning of our short-, medium- and long-termtargets, which are realized through the implementationof specific actions and the development of projects andinitiatives in support of our sustainability strategy. Every
stageof this process relies 4on respect for human rights
3
5
Materiality analysis
Our performance
Appendix
as a fundamental element in the pursuit of sustainablesuccess.

ESG context analysis

Sustainablesuccess
ESG benchmarks
and ratings

Materiality
analysis

Performance
management andreporting
Sustainability
Strategy and Plan

Action and projects

Our governance of sustainability

29

A key element of the approach described is the adoptionof the ESG (Environmental, Social and Governance) indicators throughout the entire value chain, not only to report
the results achieved, but above all to anticipate decisions
and guide our actions. We are constantly committed to
managing and measuring our performance on all relevant
aspects, considering economic, business and ESG issues
in reporting on activities and defining the objectives underlying the strategy. This model is fully in line with therequirements of the United Nations’ Global Compact, ofwhich Enel has been an active member since 2004, whichstress the importance of ever-increasing integration ofsustainability throughout all corporate strategies.
In 2022, we also officially launched our ENEL STAKECAP©™
model, proposing the adoption of new financial metrics torepresent the creation and distribution of sustainable value to the different categories of stakeholders with whom

we establish a quality relationship, measured using ESG
metrics.
Our commitment to transparent and robust reporting ofour performance on all ESG aspects is essential in order for
us to ensure access to information for all our stakeholders,
as well as for ESG rating agency assessments to support
investors in assessing the sustainability of our businessmodel.
A commitment evidenced by our active participation invarious international and European contexts in initiatives
and actions to develop and revise frameworks and standards for measuring corporate sustainability, including theEuropean Financial Reporting Advisory Group (EFRAG)’s
drafting of the European sustainability reporting standards. Please refer to the “Our participation in ESG standards/frameworks and sustainability networks” paragraphfor further details in this chapter.

The Enel governance model
for sustainability
2-9

2-10

2-17

2-18

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.
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 and in compliance with
its Diversity Policy, approved in 2018. The Board of Directors, whose term expires with the approval of the financial
statements for the 2022 financial year, in providing shareholders with its guidance on the optimal size and compo-

30

Sustainability Report 2022

sition of the Board of Directors, with a view to its renewalby the Ordinary Shareholders’ Meeting scheduled for May
2023, expressly took into account the criteria set out in
the Diversity Policy. These guidelines, which include sustainability among the competencies deemed relevant, aresummarized in a special document that was published ingood time on the Company’s website in anticipation of the
Shareholders’ Meeting called to renew the Board.
In order to provide Directors with an adequate overview of
the Group’s business sectors, including sustainability issues, a comprehensive induction program was organizedcommencing in the second half of 2020, followed by specific examination of the topics of corporate governanceand climate change during 2021. During 2022, the induction program continued with further examination of the
topics of cyber security and risk governance.
Furthermore, in order to regulate the way in which theCompany engages with institutional investors and with allshareholders and bond holders, in March 2021 the Boardof Directors adopted a specific Policy (called “Engagement
Policy”). In this regard, during 2022, the Company maintained an ongoing dialogue with institutional investors,
also with reference to certain profiles concerning sustainability, with a particular focus on climate change.
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:

1

Letter to stakeholders

2

We empower sustainable progress• 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, withregard to sustainability issues, the Committee examines: (i) the guidelines of the Sustainability Plan and themateriality matrix – which identifies the material topics
for stakeholders in light of the Enel Group’s industrial
strategies – periodically assessing achievement of theobjectives defined in the Plan itself; (ii) the way in which
the sustainability policy is implemented; (iii) the generaloutline and structure of the content in the Non-Financial
Statement and the Sustainability Report, which may besummarized in a single document. In 2022, it addressedsustainability issues in 4 of the 6 meetings held.
• Control and Risks Committee, which is tasked, among
other things, with supporting the assessments and decisions of the Board of Directors relating to the SCIGR,
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 2022 it dealt
with sustainability issues in 8 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, theremuneration policy for 2022 provides for specific sustainability targets the achievement of which is linked toa 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 related parties.
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 operation of theboard; he also plays a proactive role in the process ofapproving and monitoring corporate and sustainability
strategies;• the Chief Executive Officer is primarily responsible for3

Materiality analysis

4

Our performance5

Appendix

the management of the Company and acts as the director in charge of the establishment and maintenanceof the SCIGR. Also, in exercising the powers granted, hehas defined a sustainable business model by identifying
a strategy aimed at guiding the energy transition to a
low carbon model;• the Innovability® Function (Innovation and Sustainability), which reports directly to the Chief Executive Officer,
manages all activities relating to sustainability and innovation. The Holding units responsible for Enel S.p.A.’s operations, particularly the sustainability, circular economy,
and community relations processes, play a guidance andcoordination role for the Sustainability and Innovation
units located in the various countries and Business Lines.
In particular, the Holding’s Sustainability Planning and
Performance Management and Human Rights unit, responsible for the management of sustainability planning,monitoring and reporting processes, including compliance with the European taxonomy, as well as the management of ESG ratings, sustainability indices and the
Human Rights Policy, also reports to the Group’s Chief Financial Officer (CFO), in order to ensure the ever-greater
integration of these issues into corporate strategies andcorporate reporting;• the Global Business Lines, Countries, Global Service
Functions and Holding Functions integrate ESG factors
into their decision-making and operating processes, tocreate long-term sustainable value, thanks to the presence of dedicated Sustainability structures in all Countries, Business Lines and Global Service Functions. At the
local level, the expectations of the various stakeholders
are identified, and specific sustainability plans defined, inline with the Group strategy.
With specific reference to governance for the management of climate change, please refer to the “Zero emissions target” chapter of this document.
Furthermore, the Group CEO chairs the Cyber Security
Committee, which consists of the Group’s front line andthe purpose of which is to approve the IT security strategy
and periodically check the progress of its implementation.
For more information on the activities carried out by the
corporate bodies, please refer to the Enel Report on Corporate Governance and Ownership Structure, available atwww.enel.com, governance section, as well as the chapter
on “Sound Governance” in this document.

Our governance of sustainability

31

Our participation in ESG standards/frameworks
and in sustainable development organizations
Network/organizations

2-28

Standard/framework

1. Global Reporting Initiative

2. IFRS Sustainability Alliance

The Enel Group has been a member of the Global Reporting Initiative(GRI) since 2006, and part of the GRI Community since 2016. In 2022
Enel continued to engage with the other members of the Global Sustainability Standards Board and played an active role in completing thework of the “Business Leadership Forum on the SDGs”, once again confirming its efforts to achieve the SDGs, while demonstrating commitment, accountability and transparency through corporate reporting.
Since 2020, Enel has been part of the Global Sustainability Standards
Board, the independent body that has the exclusive responsibility fordeveloping and issuing the Global Reporting Initiative (GRI) Standards.

Even following the initial merger of IIRC and SASB into the Value Reporting Foundation, and then into the current IFRS Sustainability Alliance, in 2022 Enel continued to engage with the new organization topromote transparent, reliable and comparable reporting on environmental, social and governance issues.

3. Taskforce on Climate-Related Financial
Disclosures (TCFD)

5. Taskforce on Nature-related
Financial Disclosures (TNFD) Forum

Enel has supported the Taskforce since the publication of the first recommendations in June 2017, promoting transparent and reliable information on the climate. In 2020, Enel was also a member of the TCFD
Advisory Group which puts together recommendations on scenario
analyses.

In 2022, Enel continued to collaborate as a member of the TNFD Forum, a multi-stakeholder advisory group that supports the new Taskforce on Nature-related Financial Disclosure (TNFD) to provide a
global framework by 2023 for companies and financial institutions toassess and report risks and opportunities linked to their operation’s
impact on nature and biodiversity. In October 2022, Enel was also selected as one of the companies that are part of TNFD Pilot Program,which will test the new TNFD framework under the WBCSD's guidanceas part of three groups (energy, land use and built environment).

4. Science Based Targets initiative (SBTi)

6. Science Based Target
Network (SBTN) for Nature

Enel has certified through SBTi four targets, referring to both direct
and indirect emissions along the entire value chain, with respect tothe 2030 and 2040 horizons, in line with 1.5 °C and the criteria andrecommendations of SBTi and its reference standards.

After joining the Science Based Target Network’s Corporate Engagement Program in 2021, Enel again committed to SBTN’s goals and vision, and helped develop methods and tools in line with its targets.
SBTN – a unique collaboration of not-for-profit and world-leading organizations – provides companies with guidance to set science-based
goals for nature, water, oceans, land and biodiversity.

7. United Nations Global Compact

8. Sustainable Energy for All

In 2004 Enel joined the United Nations Global Compact by committing
to its ten founding principles on human rights, labor standards, environmental protection and anti-corruption. In 2022, Enel continued tobe part of the “CFO Coalition for the SDGs”, which it co-chairs, and sitson the new Advisory Board. Enel is also a member of the Just Transition Think Lab and a Patron of the new Transformational Governanceportfolio, an initiative to explore new decision-making models to help
companies be more responsible, ethical, inclusive and transparent. The
Group also took part in Uniting Business LIVE organized by the Global
Compact during the UN General Assembly week.

Since 2011, Enel has been a partner of Sustainable Energy for All, aninternational organization that works in collaboration with the United
Nations and global leaders in the public and private sector to advanceSDG 7. Since 2020, the Group CEO has chaired the organization's Administrative Board, a position it will hold up until 2023. Enel upheld
its commitment to the Energy Compacts in 2022: in addition to theGroup’s Energy Compact and that for the green electrification ofSardinia launched in 2021, the Group presented the Santiago Energy
Compact to boost photovoltaic capacity and promote end-use electrification in the city of Santiago de Chile, helping to further progress
on SDG 7 as reported in the 2022 Annual Progress Report. In 2022 Enelalso took part in the SEforALL Forum held in Kigali from May 17 to 19.

2322022 Sustainability
Sustainability
ReportReport2022

11

LetterLett
er to Stakeholders
stakeholders

2

We2empower
Our sustainable
sustainable
progress
progress

33

Materiality analysis
analysis44

Our perf
performanceormance

Appendix
Appendix55

9. CSR Europe

12. Global Investors for
Sustainable Development(GISD) Alliance

Enel has been a member of CSR Europe since 2005. From 2016 to
2020, the Group served as vice-chair of the Board (of which it is currently a member) and was re-elected in 2022 for a further three-year
term. Enel also joined the organization’s new flagship initiative – the“Leaders Hub for an Inclusive Green Deal” – which focuses on a justtransition for an inclusive Green Deal, where Enel has been engaged
in the Steering Committee and workforce, communities and consumers working groups. The Group also played a key role in the European
SDG Summit where the various working groups in which Enel took partpresented their results:
Business Roadmap for Just Transition of the People Leaders Hub;
Building Inclusive Workplaces Blueprint, outcome of the People
Centered Approach workshops;
Upskilling & Reskilling Report of the Upskill4Future Project launchedin 2021.
The Group also continued its work on the Biodiversity & Industry platform.
Lastly, we entered into a dialog to develop a performance indicator
for companies on tax transparency and responsible tax behavior, andparticipated in the working group to draw up a blueprint and paper oncomposite raw materials.

In 2022, Enel continued to uphold its commitment to the Global Investors for Sustainable Development (GISD) Alliance, an integral partof the UN Strategy for Financing the 2030 Agenda for Sustainable
Development, of which the Group’s CEO is a member.
Enel has been an active contributor in the Alliance's discussions onmobilizing investments in support of sustainable development, particularly in defining specific industry metrics related to the SDGs andtheir integration into existing reporting frameworks.

10. World Business Council
for Sustainable Development

14. Sustainable Stock
Exchanges Initiative

Since 2016, Enel has been a member of the World Business Council
for Sustainable Development and is represented both on the Board(of which the CEO is a member), and at Liaison Delegate level. In 2022,
the Group continued to be involved in multiple programs and projects,
including SOS 1.5 and Energy Transformation, for which it is also amember of the Steering Committee. Enel also joined the new Business Commission to Tackle Inequality initiative, of which Chairman
Crisostomo serves as Commissioner. The Group has also played an
active role in the following projects: “Healthy People, Healthy Business”,“Nature-based solutions” and "Mobility Decarbonization”. During the
WBCSD Council Meeting, Enel was engaged in the dialogue on Business priorities for the global stocktake and Towards zero-emission
mobility & buildings operations.

In 2022, Enel confirmed its participation in the Sustainable Stock
Exchanges Initiative as an Official Supporter, and expressed its interestin participating in the new Advisory Board dedicated to Voluntary
Carbon Markets.

•••

11. Sustainable Business
Roundtable (SBRT)In 2016, Enel joined the Sustainable Business Roundtable (SBRT), andin 2022 it participated in meetings focusing on “The Board's Role in
Sustainability” and “Creating Sustainable Customer Value”.

13. First Movers Coalition
In 2022, Enel signed a letter of commitment to join the First Movers
Coalition – an initiative led by the US Presidency and State Department in close collaboration with the World Economic Forum at theWEF Annual Meeting in Davos. This global initiative is dedicated todecarbonizing hard-to-abate industrial sectors which are currently
responsible for 30% of global emissions; Enel also joined the working
group dedicated to Steel.

15. GreenBiz Executive
Network Europe
In 2022, Enel signed a new partnership with the European GreenBiz
executive network, which supports large companies with achieving aneven more deep-rooted sustainable transformation and increasingly
ambitious development goals.

16. World Climate Foundation
In early 2023, Enel joined the World Climate Foundation, a multi-stakeholder and multi-sector network to promote the transition toa zero-emission and nature-positive planet through multilateral dialogue and partnerships, as well as investment in sustainable solutions.

Our governance of sustainability

33
3

Our materiality analysis
and priorities for action
2-29

3-1

3-2

3-3

Considering the analysis of the ESG context, the materiality
analysis process, via the involvement of stakeholders and relevant experts, makes it possible to define the material topics,that is the topics that represent the organization’s most significant impacts on the economy, environment and people, in-cluding impacts on human rights. The material topics are ouraction priorities based on which we define the sustainability
goals targeted toward creating sustainable short, medium andlong-term value and the content to be included in the documents that comprise Corporate Reporting.

The materiality analysis
process framework
Context analysis
Identification and analysis of key ESG megatrends,
current and future, to identify their risks, limit theirimpacts, and fully grasp their related opportunities

We involve our stakeholders andrelevant experts

Priorities’ Matrix

Double materiality

Identification andassessment of priority
topics for the Company(Y-axis) and its key
stakeholders (X-axis)
representing the Group‘s
Priorities’ matrix

Identification of material topics
based on the assessment of the
impacts generated and impacts
suffered (impact materiality andfinancial materiality)

PRIORITIES’ MATERIALITYDOUBLE MATERIALITY
Priorities’
MatrixUnderstanding
the context
in which theCompany
operates

Identificationof topics (1st,
2nd, 3rd level)

Identificationof thestakeholders(Levels I, II, III)

Assignment of Assignment
relevance toof priority to
stakeholders
the topics
by external
stakeholders

Assessmentof priority to
the topics
in Company
strategies

Material topics

Understanding
the context
in which theCompany
operates

Analysis on the Assignment
impacts of key of priority to
ESG trends
the topics
by external
stakeholders

managed through the digital system

34

Sustainability Report 2022

Definitionof the list of
impacts

Analysis of
impacts

Prioritizationof the mostsignificant
impacts

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendixtance, because it makes it possible for the Company toidentify the material topics and therefore concentrate onthem in the best way possible, both in terms risks as well
as opportunities.
Therefore if the analysis of the most significant impacts
guides the identification of the material topics, the priority topics direct the Company’s further efforts for following the strategic choices.

Enel performs the materiality analysis based on the mostwidespread international standards, including the Universal Standard GRI 2021 (Global Reporting Initiative), AA1000(Accountability 1000) and taking into consideration the newrequirements introduced on a European level by the Corporate Sustainability Reporting Directive (CSRD) and the Exposure Drafts of the European Sustainability Reporting Standards (ESRS) made available by EFRAG (European Financial
Reporting Advisory Group). The Value Reporting Foundation– SASB and Compass SDG, which supports companies in
adapting their strategies to the United Nations Sustainable
Development Goals, were also considered.

The materiality analysis process includes a significant activity of involving the stakeholders, which makes it possible to always be open to listening to the individuals orinterest groups that are influenced or could be influenced
by the organization’s activities. Every year we start multiple
types of initiatives in order to receive information about
what is perceived by internal and external stakeholders interms of priorities, satisfaction and impact of the submitted ESG topics.

Over the past two years, the perspective for identifying thepriorities attributed by the Company and its stakeholders
to ESG topics has been enriched by the view of the mostsignificant generated and incurred impacts for the Company (the so-called Double materiality – impact materiality
and financial materiality). From the point of view of “double
materiality”, the impact model is of fundamental impor-

The list of material topics (level I and II) is provided below.

Material topics (Levels I-II)

BUSINESS & GOVERNANCE

Decarbonizationof the energy mix• Climate change• Use of energy

Infrastructure andnetworks• Improvement anddevelopment of grids• Operational management of
grids

Innovation, circular
economy and digitaltransformation

Products and services
for electrification anddigitalization

Sound governance andfair corporate conduct

Economic and financial
value creation

Customer
centricity• Ecosystem of innovation and • New technologies and solutions • Ability to meet customer needssustainability
for homes, condominiums,• Quality of customer relations• Digitalization and cyber security cities, industries and financial
activities• Circular economy• Electric mobility• Fairness in management• Investment attraction
conduct• Long-term value creation• Structure of the Board ofstrategy
Directors and Top Management• Fair and transparent

ENVIRONMENTSOCIAL

communications

Occupational
health and safety• Health and safety of•

employees of contractors
operating on Enel sites
Health and safety of
employees

People management,
development andmotivation• Quality of corporate life
• People development• Valuing employee diversity

Sustainable supply
chain• Responsible management of•

the procurement of goods,
services and works
Respect for human rights in the
supply chain

Engaging local and global
communities• Social and economic development of local communities• Consultation with the local

community in the developmentof new projects

Conservation of ecosystems and environmental management• Water management• Protection of biodiversity andnatural capital• Environmental governanceThe detailed information regarding the materiality analysis
process and the activities for stakeholder involvement isprovided in chapter “Materiality analysis process and results for 2022” of this document.

Our materiality analysis and priorities for action

35

Our commitment to continuous
improvement
Sustainable investments
share of Enel’s share capital, reaching 14.9% at the endof 2022, up as compared to December 31, 2021 (14.6%).
Their share of total institutional investors is also increasing,reaching 26.2% at the end of 2022, compared to 24.6% of
the previous year. In absolute terms, 245 (vs 252 at the endof 2021) investors with investment funds consider not only
the Group’s financial performance but also the environmental, social and governance practices that Enel is integrating into its business strategy and all activities along theentire value chain. Furthermore, again at the end of 2022,
42.1% of Enel’s capital was held by investors who were signatories of the United Nations Principles for Responsible
Investment (UN PRI).

Sustainability represents a fundamental lever for creating
economic and financial value. For this reason a consistent
number of investors have integrated ESG issues in their investment portfolio over the past years in order to minimize
financial risk and guarantee higher returns.
Thanks to international development and growing profitability, together with a strong sustainability policy andstrategy targeted toward energy transition, as well as the
adoption of best practices regarding transparency andcorporate governance, Enel shareholders include national
and international investment funds, insurance companies,
pension and ethical funds. Since 2014, ESG investment
funds (active and passive) have more than doubled theirGrowth in ESG investors
ESG investors
Float
Share capital

no.
%
%

244

134

132

150

160

169

8.6

5.9

2014

36

10.3

10.5

7.7

8.0

2015

2016

Sustainability Report 2022

245

19.1

19.4

182

19.1
13.7

252

14.1

11.3
10.5

10.8

2018

2019

14.6

14.6

14.9

2020

2021

2022

8.6

2017

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Sustainability-linked finance
In Enel, sustainable finance plays a crucial role in supporting
Group growth, representing approximately 63% of grossdebt at the end of 2022. In particular, structured transactions amounting to more than 23 billion euros equivalent
were carried out.
Sustainable finance means synergy between private andpublic finance. Private finance conveys private capital towards sustainable investments, i.e. for the benefit of companies whose strategic action is intended to achieve certain sustainability objectives, reflecting the economic andfinancial value of sustainability in a lower cost of debt. Public finance, on the other
hand, stimulates the creation of sustainable investments,
through grants and loans at subsidized interest rates.
In 2020, Enel was the first company in the world to set
up a “Sustainability-Linked Financing Framework”, an
all-encompassing document that extends the sustainability-linked approach to all financial debt instruments. Indicators, targets and principles have been defined that govern
the development of sustainable finance throughout theGroup with ambition and transparency, linking the financial
strategy to the sustainability objectives. The “Sustainability-Linked Financing Framework” was updated in January
KPI

2021, January 2022 and subsequently in February 2023, inline with the annual updates of the Group’s Strategic Plan.
In the last updated in February 2023, three new KPIs(“Scope 1 and 3 GHG emissions intensity relating to Integrated Power (gCO2eq/kWh)”, “Absolute Scope 3 GHG
emissions relating to gas retail (MtCO2eq)” and “Proportionof Capex aligned to the EU Taxonomy (%)”) were included in
the framework, which contribute toward reaching SDG 7
and SDG 13 and the European Environmental Objective of
Climate Change Mitigation.
The Group’s financial instruments and operations cantherefore have an interest rate or other financial or structural terms linked to reaching the goals associated withthe reduction in direct and indirect greenhouse gas
emissions (SDG 13 “Climate action”), the increase in installed capacity powered by renewable sources (SDG 7“Affordable and clean energy”) and the percentage of total Capex, carried out during a certain period, in activities
that are qualified as sustainable from an environmental
point of view according to the criteria specified in article 3 of the regulation on EU Taxonomy (2020/852). The
KPIs and targets included in the latest update of Enel’s
Sustainability-Linked Financing Framework, published in
February 2023, are listed below.
Actual values
2022

Sustainability Performance Targets (SPT)
2022

2023

2024

2025

2030

2040

148

140

130

72

0

GHG Scope 1 emission intensity related to power generation(gCO2eq/kWh)229

GHG Scope 1 and 3 emission intensity related to Integrated Power(gCO2eq/kWh)

218

135

73

0

Absolute Scope 3 GHG emissions relating to gas retail (MtCO2eq)

22.9

20.9

11.4

0

76%

85%

100%

Percentage of installed renewable capacity (%)(1)

Proportion of Capex aligned to the EU Taxonomy (%)

63.1%
81.9%

Target:
(1)

60%

65%

66%
>80%

Outdated

Excluded from the calculation are 531.1 MW of acquired capacity, deriving from power plants acquired by the Group, according to what is indicated by thecontractual documentation of the individual instruments.

Having achieved a percentage of renewable installed capacity of 63.1% of total installed capacity as of 2022, Enelhas reached the target set in all those financial instruments
in which the interest rate, or other financial or structural
terms of the transaction, are linked to the achievementof a percentage of renewable installed capacity of 60%
or more. Particularly noteworthy is the achievement of thetargets set by the first sustainability-linked bonds issued
by Enel Finance International NV (EFI) in 2020 in Pound
Sterling. The trend of the five above-mentioned KPI, at

the relative date of reference, will be verified by an external verifier. Furthermore, Enel will report every year on its
performance regarding the five KPI, as appropriate, in its
Annual Financial Statements and/or Sustainability Report –Non-Financial Statement and/or on its website.(9)In 2022 the Group, through its financial subsidiaries, EFI
and, for the first time EFA (Enel Finance America, LLC), issued approximately 12 billion euros in sustainability-linked
bonds in various markets and currencies.

(9) https://www.enel.com/investors/investing/sustainable-finance/sustainability-linked-finance/sustainability-linked-bonds.

Our commitment to continuous improvement37

For this reason, it is worth recalling that in June 2022 EFI
launched a multi-tranche bond emission on the market
in US dollars and linked one of the trances to the Group’s
goal of reaching zero emissions of “Scope 1 GHG emissions intensity relating to power generation (gCO2eq/kWh)”by 2040. This was the first time ever for an energy multinational.
In May 2022, Enel and EFI increased the amount of the current Sustainability-Linked Revolving Credit Facility from 10
billion euros to 13.5 billion euros, the world’s largest sustainable credit line linked to SDG 13.
With regard to commercial papers, in April 2022 EFI renewed and increased its commercial paper program from
6 to 8 billion euros, which is linked to KPI “Scope 1 GHG
emissions intensity relating to power generation (gCO2eq/
kWh)” of less than or equal to 148 gCO2eq/kWh by 2023
and less than or equal to 140 gCO2eq/kWh by 2024.
Furthermore, Enel has signed agreements with different financial counterparties for derivative instruments and sustainable guarantees, both linked to the Group’s ability toreach its sustainability goals over the next years.
In February 2023, EFI launched a sustainability-linked bondin two tranches for a total of 1.5 billion euros: the new issue combined for the first time world-wide a KPI linked tothe taxonomy of EU with a KPI linked to the United Nations
sustainable development goals (“SDG”), also providing forgoals of complete decarbonization.
In the field of ​​public finance, the Group supports the economic recovery plan and aims to become a strategic partner for the adoption of the Green Deal and the Recovery
Plan at both the national and European level. The objective is to drive a sustainable, rapid and effective recovery,
through a wide pipeline of construction projects focusedon decarbonization, electricity grids and electrification,
allowing the green and digital transition of the European

economy to be accelerated, with a significant impact interms of GDP, employment and reduction of CO2 emissions and in full alignment with the European Taxonomy. To
this end, the Group has identified potential investments ofapproximately 4.3 billion euros for the period 2023-2030,
with a direct impact on the Group through the ownershipand the stewardship model. These initiatives are focusedon green hydrogen, renewables and storage, revitalizationof the photovoltaic manufacturing industry, smart grids,
network resilience and charging infrastructure for electric
mobility. The Group has also promoted partnerships withboth public and private entities, with a view to achieving
the decarbonization and electrification of consumption
through the spread of electric bus fleets, the transition towards green ports and the promotion of energy efficiency
in public buildings.
Furthermore, in the context of subsidized loans from international and national financial institutions, the Groupis leading an innovation process intended to accelerate
the mobilization of capital to support sustainable growth,through the use of sustainability-linked financial instruments.
More specifically, in 2022 the Group signed subsidizedloans for a total of 1.8 billion euros, which, as in the caseof private financing, provide for the inclusion of sustainability-linked mechanisms linked to SDG 13. Among themain operations, a special mention must be made of thesustainability-linked borrowings for a total of 800 million
dollars by EFA, a Group company, and EKF (Danish export-credit agency), the first sustainability-linked borrowings agreement for the latter.
In the coming years, Enel will continue to make use of sustainable finance tools, with the aim of achieving a sustainable debt share of the Group’s total debt of approximately
70% by 2025.

Participation in international round tables
to promote sustainable finance
The focus on sustainable finance is being confirmed,
strengthening Enel’s commitment to key global stakeholders, through the co-chairmanship of the United Nations
Global Compact’s CFO Coalition for the SDGs and involvement in the UN Global Investors for Sustainable Development (GISD) Alliance.
After the launch of “Principles on Integrated SDG Investments and Finance”, the CFO Coalition focused its work on
analyzing the targets defined by companies for the SDGs
and the relative KPIs, business cases for the adoption of an
SDG finance & investment strategy, and development of
profiles by macro sector. In this context, the CFOs therefore invested more than 110 billion dollars in support of38

Sustainability Report 2022

the SDGs achieving an increase of 55% in SDG finance ascompared to the previous year. Furthermore, an Advisory
Board was established, which includes Enel, which will provide sector-specific and geographical skills, help coordinate exchanges between CFOs and the largest communityof sustainable finance on specific issues, and will provide
information and contacts for the recruitment of new Coalition members.
Equally important are the results obtained from the collaboration with the GISD Alliance, such as the update of
the Model Mandate, which is a guide for asset owners toguarantee that the management and sustainability goals
are fully reflected in the agreements and contracts with

1

Letter to stakeholders

2

We empower sustainable progressthe managers of these assets. Furthermore, as Enel is amember of the GISD Alliance, contribution was given to thejoint statement of the Alliance as a response to the public
consultation launched by the International Sustainability
Standard Board (ISSB) in terms of sustainability reporting.
Also the work performed on a European level through our
stakeholder of reference, CSR Europe, was considerable. In
fact, on occasion of the European SDG Summit 2022, Enelparticipated in the roundtables: ”The Role of Double Ma-

3

Materiality analysis

4

Our performance5

Appendixteriality in Sustainability Reporting“ regarding how double
materiality is integrated in the CSRD and how companies
can approach it, and ”The Challenge of Circularity in theGreen Transition“ regarding the circular economy and theenergy transition.
Also worth mentioning is Enel’s involvement in the series
of interviews on sustainable finance organized by the UN
Sustainable Stock Exchanges Initiative.

Our position on and commitment to theEuropean Taxonomy
Enel welcomes the development of the European Union(EU) Taxonomy Regulation, 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.
We are fully committed to reporting on the implementation of the European Taxonomy Regulation pursuant to
its Article 8 thereof and the Delegated Act which further
specifies the content, methodology and presentation of
information to be disclosed by companies of both a financial and non-financial nature.
As regards the Climate Delegated Act, which establishes
criteria for verifying the contribution to climate mitigation and adaptation, we welcome the different thresholds
defined in the Taxonomy based on climate and environmental sciences, such as the specific emission limit of
100 gCO2eq/kWh (taking into account the whole life cycle)
to measure the substantial contribution to the climatechange mitigation target set for most energy production
technologies, as it is derived from a robust, science-based
process.
However, there are some activities that, although not covered under the EU Taxonomy Regulation, are critical topromoting the well-being of the public, especially in the
short and medium term, while contributing to the sustainable development in the long term.
As regards the energy industry, there are some important sustainability-related issues that the European Commission did not consider when developing the technicalscreening criteria, as they were outside the main scope of

the EU Taxonomy Regulation. These issues include energy security, grid reliability or energy transition, which are
crucial for Europe’s well-being and are appropriately addressed by other policies, funds and regulations at EU andMember State level.
The EU Taxonomy Regulation is still in a developmental
stage, and a number of important Delegated Acts are still
being finalized at the time of publication of this Sustainability Report. These include acts that will detail the criteria for the remaining four objectives (sustainable use andprotection of waters and marine resources; transition toa circular economy, pollution prevention and control, andprotection and restoration of biodiversity and of ecosystems) as well as those that will identify economic activities
that do not have a significant harmful impact on environmental sustainability and those that do significantly damage it. Completion of the entire regulatory process should
ensure that all globally recognized economic activities
are considered, thereby reducing current uncertainties
regarding implementation of the process itself.
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. With this important move forward, Enel reinforces the role of the Taxonomy
as a driver to promote sustainable investment decisions
and show how sustainability can be fully integrated into thefinancial landscape.
Enel holds its annual Capital Markets Day to align its capital allocation with the EU Taxonomy set out in its Business
Plan. In particular, in 2022 Enel announced a target in excess of 80% Capex alignment for the period 2023-2025
as part of its contribution to climate mitigation.

Our commitment to continuous improvement

39

Our implementation process and eligible activities
In 2020 we defined a structured process for implementing the European Taxonomy based on 5 phases:

1

2

3

4

5

Identificationof eligible
economic
activities

Analysisof substantial
contribution

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

Verification ofminimum social
safeguards

Calculationof financial
metrics

Over the past year, we have updated our eligibility analysis
according to the process under the final version of the Climate Delegated Act published in the Official Journal of theEuropean Union in December 2021 and under the Com-

Europeantaxonomy

ELIGIBLE

Aligned• Solar and wind
• Hydro (99.6%)• Geothermal• RES Storage
Mapping inaccordancewith Climate
Delegated
Act andComplementary
Delegated Act

plementary Delegated Act published in the Official Journalof the European Union in July 2022.
Below are the activities of the business classified according to the European Taxonomy (Art. 8 EU Reg. 852/2020).

Distribution in Europe,
Brazil, Chile and Peru
without new connections
between a substation
or grid and a generation
plant with greenhouse gas
intensity over threshold of
100 gCO2eq/kWh
Smart Lighting, e-Bus,
Energy Efficiency, Home,
Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
Battery Energy StorageNot-aligned
Hydro (0.4%)• New connections

between a substation
or grid and a generation
plant with greenhousegas intensity overthreshold of
100 gCO2eq/kWh• Distribution in Argentina
and Colombia

Not eligible
Trading
Retail sale of poweror gas to end users
Financial services, generalservices and otherunmeasured productclusters• Coal• Nuclear• Fuel-oil and OCGT
(1)

Gaseous fossil fuels (CCGT)(2)

e-Mobility(1)

The operation of our 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 not eligible under the EU Taxonomy Regulation.

40

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

The high level of alignment of our economic activities with
the EU Taxonomy Regulation in 2022, made possible by theirsubstantial contribution to the climate change mitigation

3

Materiality analysis

4

Our performance5

Appendix

objective while respecting the principle of doing no significant harm (DNSH) to other environmental objective andobserving the minimum social safeguards, is shown below:% 2022 alignment of business activities to the European Taxonomy

56.7%

The EBITDA percentage of Taxonomy eligible and aligned businesses decreased in 2022
compared to 2021(10) (63.9%), primarily due to changes in revenue (see details below).

21.4%

In 2022, there is a strong increase in absolute terms in turnover compared to 2021(10) (33.9%).
This increase was most pronounced in non-aligned activities, such as power generation fromgaseous fuels, and non-eligible activities, such as trading and marketing of electricity andgas and power generation from coal, mainly due to the market situation with high prices andhigher thermal generation. The aligned turnover therefore decreases by 12%.

81.9%

The actual 2022 Capex for eligible aligned activities is 4.5% higher than the Capex plannedfor 2022 in the Strategic Plan 2022-2024 for the same activities. This change is mainly due
to higher investments in absolute terms in eligible and aligned activities than planned (over€0.5 billion) and also to adjustments made in the EU taxonomy accounting process, such as
the integration of costs accounted for under IFRS 16 Leases, paragraph 53 (h), which had notbeen taken into consideration in the Strategic Plan 2022-2024.

66.9%

The percentage of Opex of Taxonomy eligible and aligned activities increased in 2022
compared to 2021 (60.8% in 2021(10)), mainly due to higher maintenance costs incurred inrenewable energy production and Taxonomy-aligned distribution activities.

of ordinary grossoperating profit(EBITDA)of turnoverof capital expenditure(Capex)of operating
expenditure (Opex)

Details of the steps related to the implementation process and results for each KPI (EBITDA, turnover, Capex
and Opex) and specific tables on nuclear and fossil gas
activities as required by Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 amending DelegatedRegulation (EU) 2021/2139 concerning economic activi-

ties in certain energy sectors and Delegated Regulation(EU) 2021/2178 concerning specific public disclosures forthese economic activities are provided in the appendix to
the Sustainability Report in the chapter “Our position on
and commitment to the European Taxonomy”.

(10) The 2021 figure has been restated based on methodological changes mentioned in the section “Process for calculating the financial metrics”.

Our commitment to continuous improvement

41

Sustainability ratings, indices 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 a strategic tool to support investors
in assessing sustainable business models and identifying
risks and opportunities linked to the sustainability in theirinvestment portfolio, aiding the development of active andpassive sustainable investment strategies.

also thanks to these plans have concerned: increasing thetransparency of performance related to ESG issues, reinforcing the process of due diligence of human rights, thecomplete mapping and assessment of the climatic associations with respect to the Paris objectives, defining andreporting the biodiversity “No Net Loss” target, improving
the reporting of Scope 3 emissions, in particular those related to the supply chain.

Enel is constantly committed to managing and reporting
all ESG aspects, considering the assessments of the rating
agencies as an important opportunity to improve its performance in terms of sustainability and devising specificaction plans with the involvement of the various company
units and Business Lines. The main actions implemented

In 2022, Enel maintained its positioning in the main ESG
indices and rankings, reaching leadership positions inmost cases. Enel was also the first company to fully alignits company reporting to the Net-Zero Company CA100+
Benchmark and was included in the Just Transition Assessment of the World Benchmarking Alliance.

Key milestones 2022:
Inclusion in the
Bloomberg
Gender-Equality
Index for the thirdyear running

Inclusion in the
MSCI ESG Leaders
for the third year
running

Sector Leader in theEuronext Vigeo
Eiris 120

Inclusion in the
Climate “A” Listfor the fourth year
running

January
2022

June
2022

September
2022

December
2022

March
2022

June
2022

December
2022

Among the world's top
utilities in the Equileap TOP
100 ranking

Industry Leader in the
FTSE4Good Index

Among the world leadersin the DJSI Worldand DJSI Europe

Main ESG Indices & Rankings

ESG Leaders Indices42

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Main ESG ratings
RatingMSCIAAA

Ranking

Sector average

Scale(low | high)Top 10BBB

CCC | AAA

33.2

100 | 032

0 | 100/ 144 utilities
Sustainalytics
ESG Risk Rating

21

30 / 296(Medium risk))

electric utilities

S&P ESG Scores90

2 / 250
electric utilities

A (climate)
B (water)-B
B

D- | A

Refinitiv
ESG Rating92

1 / 302-0 | 100

FTSE Russell
ESG Rating

4.9

2.8

0|5

Vigeo Eiris
ESG Rating75

52

0 | 100

ISS ESG Score

B

-

C

D- | A+

Reprisk Rating

42

-

48

100 | 0CDPelectric utilities

1 / 41electric utilities

1 / 65electric utilities

Our commitment to continuous improvement

43Advisory panel
This year too, we have involved a group of external experts(advisory panel) to strengthen our sustainability reporting.
The panel helps to assess and improve the quality andcredibility of our Sustainability Report and to increase ourlevel of ambition.

In particular, for the 2022 Sustainability Report, two sustainability experts were involved, with specific reference
to issues related to corporate strategy and sustainable finance.

Anjuli Pandit(Head of Sustainable Bonds –EMEA & Americas, HSBC)“This year’s Sustainability Report also
confirms Enel’s leadership in reportingto the market and communicating its
sustainability performance in a transparent
manner. The report is a structured
representation of Enel’s enormous
commitment to analyzing and reportingon the impacts resulting from its capacity
to innovate and grow, by supporting
workers and communities to achieve theobjectives of combating climate change
and conserving natural capital.”

Anjuli Pandit is Head of Sustainable Bonds for EMEA and the Americas. She
runs a team of ESG specialists across New York and London who support
issuers in the public, private sectors and financials. She is responsible forsupporting strategic clients with navigating ESG trends in fixed income
markets and enhancing engagement on ESG with investors through labelled
ESG frameworks or increased disclosure. Anjuli represents HSBC on the ICMA
EXCOM for the Principles. Anjuli has an extensive background in ESG having
worked across the private, public and financial sector as a sustainability expert.
Previously Anjuli worked at BNP Paribas, where she led ESG for BNP Paribas’debt syndicate desk, developing deep relationships with both ESG bond issuers
and investors. Anjuli also worked in the corporate sector at Tata Group, invarious roles including as a manager for public policy in the Group Chairman’s
office & heading marketing for an ESG data solutions offering for their IT
business, TCS. She has also worked with a number of non-profit or social
businesses such as Al Gore’s The Climate Reality Project, Greenlight Planet, theObama Administration and The International Energy Agency.

Paolo Taticchi(Vice preside e professore ordinario di Strategia aziendale esostenibilità presso lo University College London)“Enel’s approach to reporting reflects
a clear effort at transparency, as well as
great maturity in the ability to quantify
ESG metrics. My feedback focused on
simplifying the language and improving
the graphics to make them easier forreaders to comprehend.”

44

Sustainability Report 2022

Paolo Taticchi is Deputy Director and Professor in Strategy and Sustainability at the
School of Management, University College London, one of the top ten universities
in the world.
He has authored numerous scientific articles and books. His academic work has
seen him teach and develop projects in over 20 countries, conduct training for
Fortune Global 500 companies and give keynote speeches at major corporate andgovernment summits.
Paolo is currently a consultant for major organizations in the United Kingdom,
United States, Canada, Italy and India, and a scientific advisor to the Italian Ministryof Ecological Transition. His profile and projects have been featured over 350 times
in international media such as the Financial Times, Forbes, Sky and CNN.
In 2018, he was cited by Poets & Quants and by Forbes in the top 40 businessprofessors aged under 40 in the world. In 2021, Il Sole 24 Ore named him the mostinfluential Italian under the age of 40 in the world.

1

Letter to stakeholders

2

We empower sustainable progress

The experts provided input on our process of determining
the structure of the document and the contents relating
to the chapter “Our sustainable progress”, which gives an

3Materiality analysis

4

Our performance5

Appendix

overall view of the management of sustainability in the EnelGroup. Panel members are unpaid.

Our commitment to continuous improvement

45

TOPIC VIEW
COMPANY
VIEW

3.

46

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Materiality
analysis
We analyze the context
to identify and analyze the main current and future
ESG megatrends, to limit risk and impact, and takefull advantage of their opportunities.
We involve the different categories of internaland external stakeholders
to always be open to listening to the individuals
or interest groups that are influenced or could be
influenced by the organization’s activities.
We define the Priorities’ Matrix
by identifying and evaluating priority topics
for the Company and its main stakeholders.
We assess the impacts generated and suffered(Double materiality)
to identify the material topics, that is the topics
that represent the organization’s most significant
impacts on the economy, environment and people,
including impacts on human rights.

Materiality analysis

47

Materiality analysis process
and results for 2022
The sustainability context
2-12

2-29

3-1

3-3

201-2

In order to evaluate the economic, social and environmental challenges, identify the risks, limit their impacts
and take full advantage of the relative opportunities aspart of the broader materiality analysis process, 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 scope of theElectric Utilities sector and the current public policies,
the analysis of the sustainability context identified 14
main ESG megatrends, which include the digital revolution, definition of new governance models, climate
and demographic change, preservation of resources.
These phenomena influence both today and in the future
the economic, social and environmental dimensions ofsustainable development and often are mutually conditioned and act in combination, reinforcing their individual
impact. The technological revolution and digitalization
have in several cases accentuated income disparity andthe consequent increase in inequalities. Climate change

48

Sustainability Report 2022

is contributing to displacement from rural to urban areas, and therefore to demographic changes in countries. Safeguarding resources entails the need to use andadopt technologies with a lower environmental impact.
The impacts of the 14 ESG megatrends identified in thesocial, economic and environmental context were analyzed and evaluated using a specific questionnaire completed by external, national and international stakeholders and experts. The results confirm climate change, thedigital revolution and the preservation of resources as
the main ESG megatrends, and highlight the increase ininequalities as a further area of focus in the current andfuture scenarios.
Furthermore, due to the nature of its business and its
geographical distribution, the Enel Group is exposed tovarious types of ESG risk, identified within the reference
framework relating to the risk categories adopted by Enel,of which there are six: strategic, financial, operational,
governance and culture, digital technology, and compliance. For further details and a description of the actions
intended to mitigate their effects and ensure their correct
management, refer to the chapter “Sound governance” inthis document.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Our materiality analysis
framework
2-29

3-1

3-3

Through the materiality analysis, which involves various
categories of internal and external stakeholders, the material topics, namely the topics that represent the organization’s most significant impacts on the economy, environment, people and human rights, are defined. The results ofthis analysis are used to help define the objectives to be
included in the Strategic Plan and the Sustainability Plan,
the achievement of which is contributed to by the various
Group Functions and Business Lines, as well as the topics
covered by the Sustainability Report and other Corporate
Reporting documents.
As a result of the continuous monitoring of stakeholder
expectations (“dynamic materiality”(1)), the traditional wayof looking at the priorities of ESG topics (“Priorities’ Materiality”) has been enriched by incorporating a view of thesignificance of the impacts generated and suffered (impact materiality and financial materiality) by the Company
in the reference context (“Double Materiality”).
The impact analysis model is of fundamental importanceas it enables the Company to identify the material topics
and focus on the best way to manage them, both in termsof risk management as well as in terms of strengthening
opportunities. In addition, the Company must recognize its
strategic priorities, taking into account also the view of its
stakeholders. Identifying the priority ESG topics with which
the Company wants to engage therefore strengthens the
profile of impact management.

(1)

The concept of dynamic materiality – announced in 2020 by the World Economic Forum in the document “Embracing the new age of materiality” – represents materiality as a dynamic process according to which what may be financially irrelevant today can become material tomorrow.

Materiality analysis

49

Materiality analysis

DYNAMIC MATERIALITYPRIORITIES’ MATERIALITY

Identification of
topics by analyzing:• stakeholder andexpert (internaland external)
engagement
initiatives• sustainability
rating agencies• sectorbenchmarking
studies• strategicorientation of theCompany• Sustainability
Reportingstandards

The Group units
responsible forstakeholder
relations identify
and update thelist of the relevant
stakeholder
categories toensure continuousalignment withthe sustainability
context in which
Enel operates

The process
foresees theengagement of the
stakeholders in the
Company (GroupTop Management)in order todetermine therelevance of thecategories basedon the following
parameters:• Dependence• Influence• Tension

Assessments
assigned to ESG
topics considering
the following
parameters:• Priority• Satisfaction• Impact

Assessment of thepriorities of the
topics in Company
strategies by thevarious Company
Functions and
Top Management
through ad
hoc interviews
and specificquestionnaires

Identificationof topics (1st,
2nd, 3rd level)

Identificationof thestakeholders(1st, 2nd, 3rdlevel)

Assignment ofrelevance tostakeholders

Assignmentof priority to
the topics
by external
stakeholders

Assessmentof priority to
the topics
in Company
strategies

Priorities’
MatrixUnderstanding
the context
in which theCompany
operates

Analysis of the
ESG megatrends
based on themain public
documentsof the utilities
sector and of
public policies

Material
topicsAnalysis of
impacts on
the main ESG
megatrends

Assignmentof priority to
the topics
by external
stakeholders

Definitionof the list of
impacts*

Analysis of
impacts

Prioritizationof the mostsignificant
impacts

Identification of
the main impacts
on ESG trends thatare most relevant
through a survey
dedicated toexternal experts

Assessments
assigned to ESG
topics considering
the following
parameters:• Priorities• Satisfaction• Impact

Definition andweighing of the listof impacts generated and sufferedbased on the collection of feedback
from the internal
stakeholders andexperts, considering the point ofview of the external
stakeholders

Assessment of thesignificance of the
impacts generated
and sufferedby the internal
stakeholders, inclose connection
with themain external
stakeholders

Identification of themost significant
impacts generated
and suffered foreach ESG topic

DOUBLE MATERIALITY

*

2
50

The identified impacts are linked to the main ESG megatrends and the 1st, 2nd and 3rd level
priority topics.

2022 Sustainability
Sustainability
ReportReport2022

Activity carried out in both processes

1Letter to stakeholders

2

We empower sustainable progress

From a “double materiality” perspective, according towhich the Company can influence and be influenced by
ESG topics, the topics are material to one or both of thefollowing dimensions:• impact materiality: in line with the GRI 2021 standard,
which identifies and analyzes material topics in termsof the impacts generated by the Company, namely theeffects that the organization has or could have on theeconomy, the environment, people, and human rights,

3

Materiality analysis

4

Our performance5

Appendix

which in turn can indicate their contribution (negative or
positive) to sustainable development;• financial materiality: in line with the main publications
currently available (SASB, ISSB), which identifies and analyzes the material topics from a financial point of view,
namely those that affect or could affect the Company’s
financial condition or operating results, and are therefore most relevant to investors.

Reference standards and governance of the materiality
analysis process
The materiality analysis was developed in line with the
GRI 2021 and the AccountAbility AA1000 Stakeholder
Engagement Standard (AA1000SES), taking into accountthe draft of the ESRS 1 standard – General Requirements
prepared by EFRAG (European Financial Reporting Advisory Group), the Value Reporting Foundation – SASB
standard and the SDG Compass, which supports companies in adapting their strategies to comply with the UN
SDGs.
The Holding’s Sustainability Planning, Performance Management and Human Rights unit, as part of the Innovability Function, is responsible for analyzing materiality atGroup level and plays a guidance and coordination role,providing guidelines and methodological support for thecountry, Company and site level analysis conducted by
local managers, with the involvement of stakeholders andthe key figures at Company level.
The materiality analysis and the relative results, such as
the material topics identified, are subject to specific examination by the Corporate Governance and Sustainability Committee, set up within the Board of Directors, when
examining the Sustainability Plan guidelines. Furthermore,
the Corporate Governance and Sustainability Committee
and the Control and Risks 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 collection, aggregation and processing of data relating to the engagement and analysis initiatives of the
stakeholders and experts involved are managed througha dedicated computer system (“e-mia®: Engagement –materiality & impact analysis”), which also allows the best
stakeholder engagement and monitoring practices to beshared within the Group in line with the Company’s organizational model. The results, which are updated annually,are presented to the Group, the individual companies, theBusiness Lines/Corporate Functions and sites (potential
or actual operating sites), as well as to the different categories of stakeholders. Every two years, an analysis is carried out with a view to possibly reviewing the topics andcategories of stakeholders so as to take into account any
significant changes in the internal and external context of
the Company. In 2022, the scope of the materiality analysis included 21 countries, covering all continents where
the Group is present. In particular, in 2022, new sites wereadded in Chile, Greece and Peru, with increasing integration of the results due to the application of the Creating
Shared Value (CSV) tools to the Group’s assets.

Materiality analysis

51

Priorities‘ materiality
Identification of the topics
2-29

3-1

The topics subject to the 2022 analysis cover the entire
sustainable business model and are classified into three
categories: business and governance topics, social topics
and environmental topics, divided into three levels to cover
all the different cases.
In defining the ESG topics, multiple sources were considered and various stakeholder categories were directly andindirectly involved. The instruments used include:• the main ESG megatrends revealed in the sustainability
context analysis (please refer to the section on “The sustainability context”). A specific questionnaire, addressed
to external stakeholders and experts, was used to identify the main ESG megatrends. The latter were correlat-

ed with the materiality analysis topics, thus serving as a
guide in defining the relative impacts;• the topics of greatest interest to sustainability rating
agencies;• sector benchmarking studies;• Sustainability Reporting standards;• the strategic guidance of the Company as well as input
from experts inside and outside the organization.
We define and update the list of ESG topics every two
years, with the support of the various units involved eachyear in the analysis process.

Identification of the
stakeholders
2-29
The stakeholders involved in the 2022 materiality analysis
represent the individuals or interest groups that are affected or could be affected by the organization’s activities,
with a view to successfully implementing its strategies andachieving its goals. We regularly involve our stakeholders
through numerous listening initiatives in order to capture
their expectations and identify potential and future impacts (please refer to the section on the “Priorities’ Matrix”).
The stakeholders are grouped into categories, classified
on three levels, in line with the structure of the topics analyzed.
The first level stakeholder categories are the following:• Businesses and trade associations• Customers• Financial community• Institutions

52

Sustainability Report 2022

• 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 thestakeholder categories with their respective degree of relevance).
With the support of the various units responsible forstakeholder relations, which are involved in the analysis
process every year, we identify and update the list of relevant stakeholder categories every two years, in order todefine a complete list of actual and potential stakeholders
and to ensure continuous alignment with the sustainability
context in which Enel operates.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Assignment of relevanceto stakeholders
2-29
The process of assigning stakeholder relevance is conducted in accordance with the applicable standards andentails the involvement of the business units responsible for stakeholder relations and an assessment of eachstakeholder according to their respective relevance.

In 2022, a specific questionnaire was put to the Top Management at the Business Line and country level, who wereasked to assess the relevance of the categories based on
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

TensionTemporal dimension of the relationship, indicating groups or individuals who require the immediate attention of theorganization on broader financial, economic, social or environmental topics(See table in the section “Assignment of priority to the topics by external stakeholders”, which shows the stakeholder categories with their respective degree of
relevance).

In particular, the analysis carried out at Group level showsthat the relevance of “Suppliers and Contractors” stakeholder has grown over the last year, particularly given theawareness of their key role in managing the energy tran-

sition process. On the other hand, the relevance of the
stakeholder “Enel people”, as a strategic player in the pursuit of sustainable business and continuous improvementof the Company, remains constant.

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

3-1

3-2

3-3

Having identified the topics and stakeholder categories
and weighted them according to their respective relevance, the materiality analysis process then proceeds withan assessment of the priorities assigned to the topics by
the external stakeholders, taking into account the related impacts generated on the economy, the environment,
people, and human rights (horizontal axis of the priorities
and expectations matrix) (please refer to the “2022 Priorities’ Matrix”). An analysis of the priorities assigned by theGroup’s relevant stakeholders results in the definition of
the priority topics for stakeholders, based on which thepotential and actual impacts of the Company are defined.
In 2022, the priorities assigned to the topics were identified thanks to the implementation of approximately 460
engagement initiatives (surveys, focus groups, interviews,
document analysis, etc.) with relevant stakeholders for
the Group. Less than 1% of the assessments were carriedout indirectly, through interviews with the business units
responsible for the relationship with the reference stakeholder (“self-assessment”), demonstrating the objectivityof the analyses carried out. The engagement initiatives

used in the materiality analysis are part of the various engagement initiatives carried out during the year by theGroup’s various units. These initiatives include: customer
satisfaction surveys; the “Wellbeing Global Survey”, aimed
at collecting expectations and the degree of satisfaction
regarding the numerous initiatives promoted by the Company concerning the physical and psychological well-being of Enel people; questionnaires from sustainability rating agencies; customer complaints; relations with analysts
and investors, representative and trade associations; institutional relations at national and local levels, as well as withtrade unions; media monitoring and opinion polls. In somecases, where necessary, ad hoc materiality analysis initiatives were implemented, including an online questionnaire
for suppliers or focus groups aimed at specific categories
of stakeholders.
The following table shows, for each internal and external
stakeholder category identified at 1st Level and involvedin the materiality analysis process, the respective degreeof relevance, the engagement initiatives used, the priority
topics and the Company’s response methods.

Materiality analysis

53

Relevance

List of 1st level
stakeholders

Businesses
and tradeassociations

Customers

Type ofengagement

Qualitative
assessment

PARAMETERS:
Dependence importance ofthe relationship for the stakeholder

no.

(1)

45

Engagement
initiativeno.

Focus group8

One-on-one interview

8Open response
questionnaire

1

Indirect survey

1Additional indexes

16

Survey with focus on ESG
topics5Document analysis

6
22

(1)

Tension temporaldimension of therelationship

Main high/very highpriority topics
for stakeholders

Our response to
stakeholders in the
CHAPTERS/paragraphsof the Report• Infrastructure and

CLEAN ELECTRIFICATION- Electrification of uses,
Digitalization of grids

networks• Decarbonization of
the energy mix• Occupational

ZERO EMISSIONSAMBITION

health and safety

OCCUPATIONAL HEALTHAND SAFETY

Survey22

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

Textual analysis(2)3

Textual analysis based on
external sources

3

Focus group6One-on-one interview

4

Open response
questionnaire

5Additional indexes

6• Infrastructure and

CLEAN ELECTRIFICATION- Electrification of uses,
Digitalization of grids

Survey with focus on ESG
topics13• Customer

CLEAN ELECTRIFICATION- Electrification of uses

Document analysis

14• Occupational

OCCUPATIONAL HEALTHAND SAFETY

23

1

Qualitative
assessment

48

Survey23

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

Textual analysis(2)1

Textual analysis based on
external sources(1) An engagement initiative could involve multiple stakeholder categories.
(2) The textual analyses are performed using the artificial intelligence of the e-mia® system.

54
2

Influence importance ofthe relationship for theCompany

Sustainability
Report2022
2022 Sustainability
Reportnetworks

centricity

health and safety11

Letterstakeholders
Lett
er to Stakeholders

List of 1st level
stakeholders

Financialcommunity

2

Our sustainable
progress
We2 empower
sustainable
progress

Type ofengagement

Civil society andlocal and global
communities

Materiality analysis

Engagement
initiative

no.(1)

Focus group10

One-on-one interview

2

4
4

Our perf
ormanceperformance

Main high/very highpriority topics
for stakeholders• Decarbonization of
Qualitative
assessment

SurveyInstitutions

no.(1)

3

Qualitative
assessment

the energy mix

39

12

69

Additional indexes

21

Survey with focus on ESG
topics4Document analysis

2

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

12

Focus group6One-on-one interview

21

Indirect survey

1Additional indexes

17

Survey with focus on ESG
topics13Document analysis

11
29

Survey29

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

Textual analysis(2)6

Textual analysis based on
external sources

6

Focus group15

One-on-one interview

26

Indirect survey

1Additional indexes

17

Survey with focus on ESG
topics24

44

22

Qualitative
assessment

83

Survey44

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

Textual analysis(2)22

Textual analysis based on
external sources• Sound governanceand fair corporate
conduct• Products andservices forelectrification anddigitalization• Preservation of

ecosystems andenvironmental
management

Appendix
Appendix55

Our response to
stakeholders in the
CHAPTERS/paragraphsof the Report

INNOVATIONDIGITALIZATION
CLEAN ELECTRIFICATION- Electrification of uses
SOUND GOVERNANCECONSERVATION OF
NATURAL CAPITAL• Decarbonization ofZERO EMISSIONSAMBITION• Occupational

OCCUPATIONAL HEALTHAND SAFETY

the energy mix

health and safety• Occupational

health and safety• Decarbonization of
the energy mix• Preservation of

ecosystems andenvironmental
management

OCCUPATIONAL HEALTHAND SAFETY
ZERO EMISSIONSAMBITIONCONSERVATION OF
NATURAL CAPITAL(1) An engagement initiative could involve multiple stakeholder categories.
(2) The textual analyses are performed using the artificial intelligence of the e-mia® system.

Materiality analysis

55
3

List of 1st level
stakeholders

Type ofengagement

Qualitative
assessment

Media

SurveyQualitative
assessment

Enel people

SurveySuppliers andcontractors

Qualitative
assessment

Survey(1)no.(1)

24

13

54

43

37

27

Engagement
initiative

no.(1)

Focus group3

Indirect survey

1Additional indexes

17

Survey with focus on ESG
topics1

Our response to
stakeholders in the
CHAPTERS/paragraphsof the Report• Infrastructure andnetworks• Engaging local
and global
communities•

Preservation of
ecosystems andenvironmental
management

Document analysis

2

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

13

Focus group22

One-on-one interview

3

Additional indexes

9and fair corporate
conduct

Survey with focus on ESG
topics19• Decarbonization ofDocument analysis

1• People

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

43

Focus group7

One-on-one interview

7

Open response
questionnaire2Additional indexes

7

Survey with focus on ESG
topics13Document analysis

1

Surveys sent directly by
the e-mia® system forassessment of ESG topics
priority

27

CLEAN ELECTRIFICATION- electrification of uses,
digitalization of the grids
ENGAGING COMMUNITIESCONSERVATION OF
NATURAL CAPITAL• Sound governancethe energy mix

management,
development andmotivation• Sound governanceand fair corporate
conduct

SOUND GOVERNANCE
ZERO EMISSIONSAMBITIONEMPOWERING ENELPEOPLESOUND GOVERNANCE• Occupational

OCCUPATIONAL HEALTHAND SAFETY• Sustainable supply

SUSTAINABLE SUPPLY
CHAIN

health and safety
chain

An engagement initiative could involve multiple stakeholder categories.

Since 2016, in order to more precisely define the topics onwhich the Company needs to focus, Enel has been combining the stakeholders’ assessment of priorities with ananalysis of their satisfaction with the topics identified. The
2022 results of the expectations analysis show a substantial alignment between the priorities assigned by stake-

56
4

Main high/very highpriority topics
for stakeholders

Sustainability
2022 Sustainability
ReportReport2022

holders and their level of satisfaction. It should be notedthat the topic related to the “Sustainable supply chain” experienced an increase in satisfaction in terms of positioning compared to 2021, denoting appreciation for Enel’sstrong commitment to managing the environmental andsocial impacts associated with the supply chain.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Assessment of priority to the topics
in Company strategies
2-29
For the purposes of drawing up the 2022 Priorities’ Matrix, Enel assessed the priority of the topics in its strategies(vertical axis of the Priorities’ Matrix), taking into accountthe guidelines set by the Strategic Plan, the objectives of
the Functions/Business Lines and the commitments madePriorities’ Matrix
3-1

by the Group through its own policies and conduct criteria.
This analysis involved the Company’s various Functions and
Top Management (Chief Executive Officer and Chairman)
through ad hoc interviews and specific questionnaires.

Priorities‘
Matrix3-2

The aspects covered in the previous paragraphs, namely the priority of topics for stakeholders and in corporate
strategies, contribute to the development of the Priorities’
Matrix.
The process makes it possible to identify the priorities forstakeholders and the Company at both Group and country level, down to each Business Line/Corporate Function
and individual asset (understood as a potential or effective
operating site).
In 2022, the analysis covered 21 countries, 64 companies
and 36 sites and considered 463 engagement initiatives
involving stakeholders relevant to the Group.
Shown below are:• the 2022 Priorities’ Matrix of the Enel Group, which
considers the contributions of the main companies involved in the process, weighted according to their relevance in relation to the type of business in which they
operate;• the main 2022 priorities – in consolidated view – ofsome of the main companies participating in the materiality analysis process.
The following are some of the main priority topics and how
they should be handled.

• Occupational health and safety – Enel considers thehealth, safety, mental and physical integrity of people tobe among the Group’s main priorities. Optimal management of this topic helps to generate trust and boost thecommitment of people in relation to the work they perform, also helping to improve performance and raise productivity and efficiency. As a confirmation of Enel’s constant commitment to safety in 2022, the Lost Time Injury
Frequency Rate (LTIFR) for Enel and contractor companies
combined was down by 22% compared to 2021.

• Decarbonization of the energy mix – The fight against

climate change has become one of the key challenges facing companies. In the utilities sector in particular,
this has led to the development of regulations and public policies aimed at promoting a global zero emissions
economy, in which electrification of the energy demand
plays a key role. Institutional investors are devoting ever-greater attention to the management and results ofcompanies in relation to climate change. In this context, Enel has set specific objectives for the reductionof greenhouse gas (GHG) emissions, focusing on thegrowth of renewable capacity and the gradual closure ofcoal plants (please refer to the “Sustainability Plan 20232025” and the “Zero emissions ambition” sections of thisdocument).
• People management, development and motivation – Inline with our Open Power approach, we work every day
to create an open, inclusive and dynamic working environment that seeks to incorporate diversity, attract new
talent and empower our people. In particular, Enel’s commitment to closing the gender gap and ensuring equalpay continues with tangible results, the result of actions
that affect all stages of women’s career paths in the organization. The Long-Term-Incentive Plan 2022 actually
supports these trends, confirming the target “percentage of women in Top Management succession plans” of
45% by the end of 2025, with a view to continuing a policy of preparing a suitable pool for managerial appointments in the near future.
The priority topics for stakeholders and the Company thus
defined are subject to analysis according to the double
materiality approach, which aims to identify the material
topics (please refer to the section “Material topics”).

Materiality analysis

57

64 Companies
36 Sites
463 Engagement
initiatives

Priorities in corporate strategies

HIGH

21 Countries

HIGH
Priorities in corporate strategies

2022 Priorities’ Matrix

I

F

F
C

C

N

5

3

3

1

1

3

3

5

E

E

H

H
A

B

B
A

N
G
D

G
D

L

5

I

M

M

L

Priorities
Priorities
assigned
assignedby stakeholder
by stakeholder

5

LOWLOW

HIGHHIGH

Business and governance topics

Social topics

A

Infrastructure and networks

G

Engaging local and global communities

B

Decarbonization of the energy mix

H

People management, development and motivation

C

Customer centricity

I

Occupational health and safety

D

Products and services for electrification and digitalization

L

Sustainable supply chain

E

Sound governance and fair corporate conduct

F

Economic and financial value creation

Environmental topics

N

Innovation, circular economy and digital transformation

B

Decarbonization of the energy mix

M Preservation of ecosystems and environmental management

The main 2022 priorities for the Countries(1)

B

I

F

A

I
B

(1)

2
58

I

E

H

I

A

A

The 2022 materiality analysis concerned 21 countries. The chart shows the results of only some of the main companies that participated in the process. As
concerns Enel Américas, in 2022 Uruguay did not participate in the materiality analysis process.

2022 Sustainability
ReportSustainability
Report2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Double materiality
Definition, analysis and prioritizationof the most significant impacts
3-1

3-2

3-3

The materiality analysis process has evolved and the traditional view is now complemented with that of double materiality, in which financial materiality and impact materiality
each represent an equally important perspective. Throughthe involvement of the Group’s key stakeholders and internal and external experts, the process seeks to analyze themost significant impacts in order to identify material topics,
taking into account – especially for negative impacts – thedue diligence process and the relative results.

Once the impacts have been identified, Enel proceeds with
their analysis, that is with the assessment of the respective
significance, both on a material level of the impact as wellas financial materiality level, through the involvement of
the Group’s internal stakeholders and experts who, in performing their business activities, have a greater relationship with the main stakeholders and so have a complete
view of the actual and/or potential impacts in the external
context in which Enel operates.

Enel has therefore identified the impacts based on the following activities:• analysis of the main ESG megatrends: a survey of external (national and international) stakeholders and experts,
with the aim of assessing the impacts of the main ESG
megatrends through an analysis of the context in which
we operate. (please refer to the section “The sustainability context”);• assignment of priority to the topics by external stakeholders: more than 460 engagement initiatives involving the Group’s main external stakeholders (for example,
through surveys, focus groups, desk analysis, etc.), in order to assess the priority, satisfaction and impact of ESG
topics (please refer to the section “Assessing priorities
and satisfaction of topics assigned by stakeholders”);• definition of the impacts list: direct involvement of internal stakeholders and experts in defining and weighting the list of impacts generated and suffered on thebasis of their feedback, also taking into account theviews of external stakeholders. The impacts list has
therefore been subject to thorough analysis and review
by experts who internally oversee business activities,
giving rise to positive and negative impacts that affector may affect the relationship with the Group’s relevant
stakeholders.

As regards the impact materiality, in 2022, Enel strengthened the methodology for analyzing the impacts generated by the Company to bring it into line with the provisionsof GRI 2021. Following the pilot project launched in 2019and its completion in 2020 and 2021, with the involvementof all the countries participating in the process, in 2022
the Group conducted an impact materiality analysis which,through the involvement of the relevant stakeholders andexperts and based on the best practices dictated by thedue diligence process, identified the impacts generated by
the Company on the economy, the environment and people, considering any violations of human rights as among
the negative impacts and the contribution to sustainable
development among the positive impacts. The impact
analysis was carried out by each local Sustainability andHolding unit in order to assess the significance of the impacts, a process involving the Group’s internal experts andstakeholders who, in performing their business activities,
have a close relationship with the main stakeholders andso have a complete view of the actual and/or potential impacts in the external context in which Enel operates. This
analysis took into account the internal company context,
including upstream and downstream activities in its value chain, the main stakeholders, and the best practices
dictated by the due diligence process, and assessed the(actual and potential) positive and negative impacts generated by the Company. Negative impacts were analyzed

Materiality analysis

59

according to their significance based on the degree ofseverity(2) and likelihood, in the case of potential impacts.
Positive impacts were analyzed according to their significance(3) and based on their scope and direct and indirectcontribution to the SDGs, in line with the commitment
made by the Group, and with respect to the management
instruments put in place to monitor the objectives set. On
the basis of the impact materiality assessment, for reporting purposes the most significant positive and negative
impacts generated (actual and/or potential) were selectedaccording to their highest degree of significance for eachmaterial topic (1st Level). The table below shows:• the most significant impacts – associated with ESG

megatrends, the material topic (1st, 2nd, 3rd Level) andrelated GRI – both positive and negative generated directly and indirectly by the Company vis-à-vis the exter-

nal context;• type: whether actual or potential;• the time horizon for their occurrence (short-, mediumor long-term);• impact management: the Company strategies and per-formance, in line with the management of the main typesof risk faced by the Enel Group;• additional information: whether the reported impact isor could be a human rights concern; the reference SDGs;
the phase of the value chain affected by the impact; thestakeholders that can or could be positively or negatively affected by the impact; whether the topic related to
the reported impact is a priority for the stakeholders involved in the materiality analysis process; reference to
the Sustainability Plan and to the chapter of the Reportthat describes in detail the management methods andresults related to the impact.

(2) The severity of an actual or potential negative impact is determined by the following parameters:• scale: how severe the impact is;• scope: how widespread the impact is;• irremediable character: how difficult it is to counteract or repair the resulting damage.
(3) The significance of a positive impact is determined by the scale and scope of the impact, as well as by the probability of the impact in the event it is potentially positive.

60

Sustainability Report 2022

60

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

Materiality analysis

5

Appendix

61

POSITIVE IMPACTS

Table of the most significant
significant impacts
ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI(1)

Type(2) –Duration(3)Climate change,
Resources
preservation

Decarbonization of theenergy mix

Climate change – Reduction in CO2emissionsContribution to the achievementof international and national goals
to achieve a zero-emission global
economy and society and to limit
the increase in the global averagetemperature (1.5 °C - 2 °C)

GRI 305: Emissions

ActualResources
preservation

Decarbonizationof the energy mix

Energy use – Reducing energy
consumption

ActualUrbanization,
Digital revolution

Infrastructureand networks

Network improvement anddevelopment – Development of
micro-grids and rural electrificationelectrification

Major and widespread commitment GRI 302: Energy
to efficientefficient and sustainable use ofenergy in all business processes
through initiatives to improve andaccelerate the transition to more
efficient technologies aimed at
efficient
reducing energy consumption andpromoting renewable sources
Guarantee grid extension and micro- DMA (former EU23):
grid solutions in rural and suburban
Access to energy
areas through the creation of new
grid connections

Resources
preservation

Preservation of
ecosystems andenvironmental
management

Protecting biodiversity and natural
capital – Conservation and promotionof local natural heritage

Strong and widespread commitment GRI 304: Biodiversity
to biodiversity through initiatives
aimed at protecting and restoring
habitats and natural capital, inparticular in protected areas and inparticularrespect of threatened species,andthe adoption of location and design
criteria that can guarantee nonet-deforestation, No Go in natural
UNESCO World Heritage sites andno net loss of biodiversity

Actual

Well-being

Occupational
health andsafetySafety of contractors working at Enelsites – Promotion of a safety culture
among contractors working at Enelsites

Decrease in the number of injuries
and illnesses among contractors,
thanks to improved safety culture

ActualInclusion andgender equality,
Future work

Peoplemanagement,
development andmotivation

Quality of corporate life – Work-lifebalance

Increasing workers’ quality of life and GRI 401: Employment
well-being by improving work-lifebalance and psychological/physicalwell-being

ActualInclusion andgender equality,
Future work

Peoplemanagement,
development andmotivation

Valuing workers’ diversity – Valuing
disabilities, Valuing age diversity,
Valuing gender diversity, Valuingother diversities

Valuing diversity (e.g. inclusion ofpeople with disabilities, diversity interms of age, gender, ethnicity, etc.)
to develop and attract
attract new talentand ensure their recruitment

ActualPriority for stakeholders and the Group

Impact relevant on human rights(1) “-” is reported where the material topic is not currently covered by a specific GRI(2) Type: actual/potential(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)
Long term (>5 years)2622022 Sustainability Report
Sustainability Report 2022

GRI 403: Occupational
health and safety

ActualGRI 410: Safety
practices

GRI 405: Diversity andequal opportunity
opportunity

1
1

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

Enel has brought forward its commitment by 10 years, from 2050 to 2040, to complete thedecarbonization process of its entire value chain, by reducing its own direct and indirect emissions tozero (so-called “Net-Zero”).
To this end, Enel has constructed a roadmap that includes medium-term objectives to 2030 against 2017 as abenchmark, as certified by the Science Based Targets initiative (SBTi) in line with the 1.5 °C pathway. In particular,
the Company has committed to reducing (i) direct greenhouse gas emissions per kWh by 80%; (ii) emissions
related to electricity sales per kWh by 78%; (iii) total emissions related to the retail sale of gas by 55%; (iv) othertotal direct and indirect emissions by 55%. 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
is centered on decarbonization through the development of assets for generation from renewable sources(aimed at achieving 100% renewable installed capacity by 2040), 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.
Commitment to an efficient and sustainable use of energy is guaranteed through the adoption of energy
efficiency measures and improvement of energy consumption in all industrial processes. In pursuit of thisobjective, the transition to more efficient and renewable technologies plays a decisive role in promoting aprocess of electrification of energy consumption.

Enel is constantly at work to develop and improve the efficiency of the transport and distribution 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, to improve the quality of the service delivered and reduce the number andduration of outages (SAIDI and SAIFI).
Reaching and connecting vast rural and remote areas of the world means integrating technologicalinnovation with socio-economic development. In fact, Enel Grids has carried out numerous electrification
projects, in which grid extension solutions are adopted, depending on the specific context. In particular,
Enel aims to guarantee access to energy in rural and suburban areas by increasing the number of newconnections and at the same time making the grid increasingly innovative, digital and resilient, including
through the spread of the latest smart meters.
In environmental and natural ecosystems, Enel is implementing suitable actions in order 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 rivermonitoring activities to check the effectiveness of the adopted measures. In this context, the Groupacknowledges that protecting the environment and natural resources, combating climate change andcontributing to sustainable economic development are strategic factors in the planning, operation anddevelopment of our activities. This commitment is reflected in a dedicated principle in the Policy on
Human Rights, in line with the environmental policy which also includes respect for biodiversity.
Enel is an active part of the international debate with stakeholders and the networks with the mostinfluence on the topic (for example, Business for Nature, Taskforce on Nature-related Financial Disclosure,World Business Council for Sustainable Development and Science Based Targets for Nature) regarding
natural and biodiversity topics.
Enel implements prevention, mitigation and recovery programs and plans regarding the impacts on
ecosystems and natural habitats in all critical and/or significant sites for all our assets.
Enel considers the health, safety and psychological and physical well-being of individuals the most precious
asset to be protected at all times of life. It is therefore committed to developing and promoting a robust safety culture for the people who work with and for the Group. Enel’s commitment is demonstrated in the Group’s
Policy on Human Rights, the “Declaration of Commitment to Health and Safety” and the “Stop Work Policy”.
In particular, the approach towards suppliers is to consider each of them as a partner with whom to share thecardinal principles of safety and the environment. Enel is committed to developing and disseminating a robust culture of health, safety and well-being throughout its entire corporate perimeter, in order to guarantee
a workplace that is free of risks to health and safety, and to promote behaviors oriented towards “work-life
integration”. It is therefore actively committed to promoting personal and organizational well-being as enabling factors for the engagement and innovative potential of the people who work with us, including suppliersand contractors. The following are implemented for suppliers: a continuous process of field inspections andconsequence management; a Contractor Safety Partnership program, to share Enel’s core values on safety; aSafety Support activity plan with improvement pathways and support for the training of contractor staff.
Enel is committed to developing and disseminating a robust culture of health, safety and well-being
throughout the entire corporate perimeter, in order to guarantee a workplace that is free of risks tohealth and safety, and to promote behaviors oriented towards “work-life integration”. It is therefore actively
committed to promoting personal and organizational well-being as enabling factors for the engagement andinnovative potential of people. Enel’s commitment is demonstrated in the Group’s Policy on Human Rights.
Enel has defined a global well-being framework that focuses on people, considering psychological wellbeing, work-life balance, and physical, social, economic, ethical and cultural well-being to be fundamental.
Enel promotes the principles of diversity, inclusion, equal treatment and opportunity and is committed toguaranteeing the right to working conditions that respect the dignity of every person and to creating aworking environment in which people are treated fairly and valued for their uniqueness. This commitment
is reflected in the Policy on Human Rights, and in the adoption of a Diversity and Inclusion Policy, publishedin parallel with adoption of the seven Women Empowerment Principles (WEP) promoted by the UN Global
Compact and UN Women, in compliance with the UN Sustainable Development Goals. The most significant
initiatives include actions dedicated to a systematic impact on the various aspects of the gender gap andinclusion, specific listening and support services made available to people during the pandemic, projects
dedicated to people with vulnerabilities, awareness initiatives on LGBTQ+ topics and cultural diversity.

4
4

Relevant
SDG
13

12

13

7

9

11

14

15

8

3

4

5

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Civil society andlocal and global
communities
Customers
Financial community
Enel people
Media
Institutions

Zero emissions
ambition

Civil society andlocal and global
communities

NatureConservation ofnatural capitalBusinesses and tradeassociations
Civil society andlocal and global
communities
Customers
Institutions
Media
Enel people
Suppliers andcontractors
Businesses and tradeassociations
Civil society andlocal and global
communities
Institutions

Cleanelectrification

Suppliers andcontractors
Enel people

Occupational
health and safety

Enel people

Empowering EnelpeopleEnel people

Empowering EnelpeopleNatureConservation ofnatural capital

10

5

8

10

Materiality analysis

3
63

POSITIVE IMPACTS

ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI(1)

Type(2) –Duration(3)New governancemodelsSoundgovernance andfair corporate
conduct

Fairness in management conduct

Contributing to internal awarenessand dissemination to external
stakeholders (contractors, business
partners) of the principles of integrity
partners)
and ethics in business conduct

GRI 1: Foundation

ActualGRI 2-2-22: Statementon sustainable
development
strategy; 2-23: Policy
commitments; 2-24:
Embedding policy
commitments
GRI 205: Anti-corruption
GRI 206: Anticompetitive behavior
GRI 415: Public policy

Increase ininequalities

Engaging local
and global
communities

Social and economic developmentof communities – Development andmaintenance of local supply chains, Employment development in areas where
we maintain a presence, Infrastructuredevelopment in areas where we maintain a presence, Transfer of skills andupskilling among the local population,
Support for entrepreneurial activities in
the community, Access to basic goods

Social and economic development in GRI 413: Local
the areas where the Group operates, communities
by means of economic investments
aimed at promoting the energy
transition

ActualIncrease ininequalities

Sustainablesupply chain

Responsible management of the
procurement of goods, services andwork – Integration of environmental,
safety and sustainability criteria
and performance
performance in purchasing
management

Contribution to reducing Enel’s
supply carbon footprint through asustainable supply chain

GRI 204: Procurement
practices

ActualGRI 308: Supplier
Environmental
Assessment

New economy,
Digital revolution,
New mobility,
Urbanization

Products andservices forelectrification andelectrification
digitalization

Electric mobility - Deployment ofelectromobility infrastructure

electrification of
Promoting the electrification
cities through electric mobility-

ActualEmpoweredcustomer

Customer
centricity

Ability to meet customer needs– Quality and timeliness of thecommercial offeringoffering

Increasing the quality of services
provided to customers (e.g.
promotion of accessible products
and services, promotion of “slowshopping” and inclusive offers,
offers, etc.).

GRI 417: Marketing andlabelling

ActualDMA (former EU23):
Access to energy
Disclosure of EU DMA
information (former
EU24)

New economy,
Digital revolution,
Resources
preservation

Innovation,
circular economy
and digitaltransformation

Innovation and sustainability
ecosystem – Promotion ofpartnerships,
partnerships, Development of theInnovation Hub&Lab network, Supportand relationships with startups,
startups,
Intellectual property,
property, Disseminationof the culture of innovation andsustainability, Crowdsourcing

Supporting
Supporting adequate disseminationof innovation and the digitalization
process to find
find the best solutions
on a global scale and to accelerate
the development of new businessmodels (e.g. promoting partnerships,
partnerships,
development of innovation hubs andlaboratory networks, etc.)-

ActualNew economy, New
governance models

Economic andfinancial value
financialcreationLong-term value creation strategy –Business Ownership model, Business
Stewardship model

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

GRI 201: Economic
performance
performance

ActualPriority for stakeholders and the Group

Impact relevant on human rights(1) “-” is reported where the material topic is not currently covered by a specific GRI(2) Type: actual/potential(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)
Long term (>5 years)

4642022 Sustainability Report
Sustainability Report 2022

GRI 2-2-6: Activities,
value chain and otherbusiness relationships

1
1

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

Enel rejects corruption in all its direct and indirect forms, given that it is acknowledged as one of thefactors that undermines institutions and democracy, ethical values and justice, well-being and thedevelopment of societies. This commitment is reflected in the Policy on Human Rights and through theanti-corruption program known as the “Zero Tolerance of Corruption Plan”, one of the pillars on which
our Anti-Corruption Management System is structured. In this context, Enel has adopted as part of its
corporate governance specific compliance programs, i.e.: the Code of Ethics, the Zero Tolerance ofCorruption Plan (“ZTC Plan”), the Policy on Human Rights, the Policy on international sanctions, the Enel
Global Compliance Program (“EGCP”), the Model pursuant to Italian Legislative Decree 231/01 and othernational 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).
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 businessintegrity 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 thesematters. Continuous training takes place by means of various dissemination and communication initiatives,
as well as awareness campaigns regarding the principles of integrity and ethics in business conduct.
The Group's approach is aimed at creating shared value with the communities with which it operates
and collaborates. This approach, integrated into the business, is based on listening to the local needs ofstakeholders.
The Group aims at the economic and social development of the context in which it operates throughnumerous projects aimed at sustainability, involving an increasing number of beneficiaries.

Enel contributes to the creation of a resilient and sustainable supply chain, by promoting co-innovation
projects with a view to decarbonization and circular economy.
As part of the tendering process, increasingly challenging emissions targets are set, which also take into
account the possible contributions of innovation. To this end, Enel has adopted a process of defining
mandatory requirements and rewarding factors (sustainability K) relating to ESG and circular economy.
Data – requested during the tendering stage – enables us to measure emissions for the entire supply
chain, and is the first step in the decarbonization pathway.
Enel works together with suppliers to define criteria, technical requirements and solutions aimed atfurther strengthening circularity and sustainability in the early stages of the value chain.
Enel considers the electrification of transport as the key to decarbonizing consumption, using
digitalization as an accelerator for the development of increasingly innovative, flexible and integrated
services. In this context, electric mobility plays a fundamental, role demonstrated by the continuous
spread of new services and products, such as charging points for electric vehicles, which are increasingly
common throughout the country.

Enel promotes the dissemination of innovative and inclusive products and services, such as automatic
payments, e-billing, the “slow shopping” method (aimed at creating meaningful experiences forcustomers with disabilities through specific dedicated channels, using accessible apps and digital
services).
Enel monitors the rate of customer satisfaction in every country in which it operates through specificsurveys and analysis of customer feedback.
In conjunction with the various Functions and Business Lines, the Holding Innovability Function®
(Innovation and Sustainability), reporting directly to the CEO, manages innovation activities in conformity
with regulations currently in force and with the Group's compliance programs.
With the aim of supporting the Group’s Strategic Plan and responding to the innovation needs of thebusiness, an Innovation Plan is defined annually.
Starting from the Innovation Plan, shared with the Top Management and submitted for the approval of
the Holding Innovation Committee (chaired by the Director of Innovability®), innovative solutions aresought to be tested and scaled globally through innovation tools (e.g. intelligence, crowdsourcing) andcollaboration with startups, SMEs, large companies and the academic world.
Capital employment is centered on decarbonization through the development of assets for generationfrom renewable sources, on enabling infrastructure linked to the development of networks, and on theimplementation of platform models, fully exploiting technological and digital evolution which will favor
consumption electrification and the development of new services for end customers.

4
4

Relevant
SDG
16

17

3

8

9

12

9

11

9

11

9

11

12

13

17

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Enel people
Suppliers andcontractors

SoundgovernanceBusinesses and tradeassociations
Civil society and local
and global communities
Suppliers andcontractors
Enel people
Institutions
Customers

Engaging
communities

Suppliers andcontractors

Sustainablesupply chain
Managing humanrightsBusinesses and tradeassociations
Civil society andlocal and global
communities
Suppliers and contractors
Enel people
Institutions
Customers

Cleanelectrification

Businesses and tradeassociations
Customers
Civil society andlocal and global
communities

Cleanelectrification

Businesses and tradeassociations
Civil society and local
and global communities
Media
Suppliers andcontractors
Enel people

Innovation

Businesses and tradeassociations
Civil society and local
and global communities
Suppliers andcontractors
Enel people
Financial community
Institutions
Customers

Zero emissions
ambition
Cleanelectrification

Materiality analysis

565

NEGATIVE IMPACTS

Table of the most significant
significant impacts
ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Climate change,
Resources
preservation

Decarbonization of theenergy mix

Climate change – Reduction in CO2emissions

fight
Failure to contribute to the fightGRI 305: Emissions
against climate change due to theincrease in CO2 emissions derivingfrom the operation of thermoelectric
plantsPotential

Urbanization,
Digital revolution

Infrastructureand networks

Operational grid management – Grid
maintenance

Reduction of electricity transmission
caused by overload issues in thenational grid

DMA (former EU23):
Access to energy

Potential

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

GRI 303: Water andeffluents

Increase in the number of workplace
injuries sufferedsuffered by workers andcontractors, due to lack of safety
management and monitoring

GRI 403: Occupational
health and safety

Resources
preservation

Well-being

Conservationof ecosystems
andenvironmental
management

Water management - Wastewater
treatment, recycling and reuse

Occupational
health andsafetyHealth and safety of workers ofcontractors operating on Enel sites
Worker safety –Promotion of safety culture
among workers, Management andmonitoring of worker safety

Inclusion andgender equality,
Future work

Peoplemanagement,
development
and motivation

Priority for stakeholders and the Group

People development – Recruitment
and remuneration policies

Impact relevant on human rights

2022 Sustainability Report
Sustainability Report 2022

Type(2) –Duration(3)System efficiency
efficiency (EU12)

Potential

GRI 306: Eflluents
Eflluents andwaste

Potential

GRI 410: Safety
practices

Decrease in the ability to attract
attract
GRI 401: Employment
talent and increased worker turnover
due to inadequate hiring andcompensation policies and benefit
benefitprograms(1) “-” is reported where the material topic is not currently covered by a specific GRI(2) Type: actual/potential(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)
Long term (>5 years)

2
66

Relevant GRI(1)Potential

1
1

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

The roadmap of the decarbonization process envisages the gradual phase-out of coal-fired capacity by
2027, in addition to the progressive expansion of generation from renewable sources.

Enel, as 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 the infrastructure existingin all Countries, with the primary aim of improving the quality of the service delivered and reducing thenumber and duration of outages.

The adoption of ISO 14001-certified Environmental Management Systems certified within the Group
ensures the presence of structured policies and procedures to identify and manage the environmental
risks and opportunities associated with all corporate activities.
Enel is constantly monitoring all power generation sites located in zones at risk of water scarcity (water
stressed areas) in order to ensure efficient use of water resources. Mapping of production sites fallingwithin water stressed areas is done in line with the criteria of GRI 303 (2018) with reference to theconditions of “(baseline) Water Stress”. With the aim of identifying technological solutions to reduce
consumption, particular attention is paid to assets present in areas with a high level of water stress. The
risk of water scarcity is also mitigated by the growth of generation from renewable sources, which do notessentially depend on the availability of water for their operation. In this context, the Group acknowledges
that protecting the environment and natural resources, combating climate change and contributing tosustainable economic development are strategic factors in the planning, operation and developmentof our activities. This commitment is reflected in a dedicated principle in the Policy on Human Rights,
including in line with the environmental policy which also includes respect for biodiversity.
Enel is committed to developing and disseminating a robust culture of health, safety and well-being
throughout the entire corporate perimeter, in order to guarantee a workplace that is free of risks tohealth and safety, and to promote behaviors oriented towards “work-life integration”. It is therefore actively
committed to promoting personal and organizational well-being as enabling factors for the engagement
and innovative potential of the people who work with us, including suppliers and contractors. Each person
must feel that they are responsible for their own health and safety as well as for the health and safety ofothers. This is also expressed in integrating health and safety into training processes and activities. Enel’scommitment is demonstrated in the Group’s Policy on Human Rights. The Group has developed a Healthand Safety Management System in compliance with international standard BS OHSAS 45001, basedon identifying hazards, qualitative and quantitative risk assessment, and on planning and implementing
preventive and protective measures.
This system also considers the rigorous selection and management of contractors and suppliers,
promoting their involvement in continuous safety performance improvement programs. In particular,
these processes make it possible to direct, integrate and monitor, both at Group and Country level,
all the prevention, protection and intervention actions aimed at protecting the health of workers andcontractors, also in relation to exogenous health risk factors that may not be strictly related to work
activities.
In line with our Open Power approach, we work every day to create an open, inclusive and dynamic
working environment that seeks to incorporate diversity, attract new talent and empower our people.
The new digital tools to support the selection process favor full participation and inclusion of all the
candidates involved, using gamification experiences at a global level and a video interview supported byartificial intelligence, aimed at an in-depth exploration of the aptitudes of the young talent involved.
Over the last year, several initiatives, most of which have been digital, have been developed in relation
to talent attraction and employer branding, aimed at building a corporate identity that is attractive topotential candidates. New regulations have also been released at a global level, which also include the
e-profile tool as an opportunity to enhance people's hard and soft skills, their aspirations and theirmotivations for change.

4
4

Relevant
SDG

13

7

6

14

8

3

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Civil society andlocal and global
communities
Businesses and tradeassociations
Financial community
Media
Enel people
Customers
Institutions
Suppliers andcontractors

Zero emissions
ambition

Customers
Civil society andlocal and global
communities
Businesses and tradeassociations
Financial community
Media
Enel people
Institutions
Suppliers andcontractors

Cleanelectrification

Businesses and tradeassociations
Civil society andlocal and global
communities
Institutions

NatureConservation ofnatural capital

Enel people
Suppliers andcontractors

Occupational
health and safety

Enel people

Empowering EnelpeopleMateriality analysis

367

NEGATIVE IMPACTS

ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI(1)

Type(2) –Duration(3)New governancemodelsSoundgovernance andfair corporate
conduct

Structure of the Board of Directors
and Top Management – Balanced
structure and diversity of the Boardof Directors

Worsening of external stakeholders’perception of the Group's inclusion
practices due to the lack ofdiversity in the governing bodies ofsubsidiaries

GRI 406: Nondiscrimination

Potential

Increase ininequalities

Engaging local
and global
communities

Consultation with the local
community in the development of
new projects – Dialog, sharing andengagement on shared goals

Possible conflicts or opposition
from local communities due to thelack of sharing of the environmental
and socio-economic benefits of the
project

GRI 413: Local
communities

Increase ininequalities

Sustainablesupply chain

Respect for human rights in the
supply chain – Integration of humanrights and labor rights criteria
and performance into fuel supply
management

Procurement of goods and services GRI 414: Supplier Social
produced by activities related toAssessment
potential human rights violations (e.g.
exploitation of unskilled and lowpaid workers)

Potential

New economy,
Digital revolution,
New mobility,
Urbanization

Products andservices forelectrification
anddigitalization

New technologies and solutionsfor Homes, Condominiums, Cities,
Industry and financial activities

Reduction of positive environmental impacts due to possible delays in the
installation, maintenance and repairof renewable energy technologies(energy-efficient products andservices)

Potential

Empoweredcustomer

Customer
centricity

Ability to meet customer needs –Optimizing products and services forthe most vulnerable customers

Increase in the number of vulnerable
customers and energy poverty
due to an increase in the price ofelectricity

Potential

GRI 2-2-9: Governancestructure andcomposition; 2-10:
Nomination andselection of the highest
governance body

GRI 417: Marketing andlabelling

Potential

DMA (former EU23):
Access to energy
DMA EU (formerEU24): Disclosure of
information (standardize
this wording wheneverit can be found in thetables for both impacts
and GRI issues)

New economy,
Digital revolution,
Resources
preservation

Innovation,
circulareconomyand digitaltransformation

Circular economy – Use ofsustainable inputs, Dissemination of
circular economy culture

Reduced availability of global/
local raw materials due to failure
to implement circular economy
practices

GRI 301: Materials

New economy, New
governance models

Economic andfinancial value
creationLong-term value creation strategy –Business Ownership model, Business
Stewardship model

Reduction of investments inmaintenance of existing assets, infavor of those aimed at building new
capacity

GRI 201: Economic
performance

Priority for stakeholders and the Group

Impact relevant on human rights(1) “-” is reported where the material topic is not currently covered by a specific GRI(2) Type: actual/potential(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)
Long term (>5 years)

4682022 Sustainability Report
Sustainability Report 2022

Potential

GRI 306: Waste

GRI 2-2-6: Activities,
value chain and otherbusiness relationships

Potential

1
1

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

Within the best practices adopted by Enel with regard to subsidiaries, it is envisaged that, without
prejudice to applicable legislation, the selection of members of the Board of Directors of these companies
must aim to integrate different professional and managerial experiences and skills (including specific skillsin the business sector concerned, as well as in economic, financial and legal matters), and combine themwhere possible, with the integration of diversity of gender, age and role.

Via the Group approach aimed at Creating Shared Value (CSV), since the beginning of the project Enel has
been involving local communities, making them aware and informing them of topics connected to climatechange, and explaining the benefits and effects of the energy transition, not only for the environment but
also for the socio-economic development of the areas where Enel operates.

The protection of human rights aspects within Enel’s supply chain is guaranteed by the supplierqualification system as well as by the entire procurement process.
The qualification system requires suppliers to commit to adopting best practices in terms of human rights
and working conditions, impact on communities, dissemination of principles regarding respect for humanrights, throughout their value chain.
The General Terms and Conditions of Contract also require compliance with relevant current legislation
and regulations, and for suppliers to sign up to the principles to which Enel has committed in the Policy on
Human Rights, Code of Ethics, Zero Tolerance of Corruption Plan, and global compliance programs.
The Enel X Global Retail Business Line was set up in order to respond to the new scenarios opened up by
the electrification process and to design offers that are increasingly adapted to customer needs, and istherefore aimed at providing a fast and timely service to customers. Enel mitigates the risk related to thelack and/or delays in the supply of raw materials through the diversification of its suppliers. Any delaysin the supply chain due to the scarcity of raw materials are appropriately mitigated by Enel through thediversification of suppliers.
The Group has committed to a “just energy transition for all”, including by offering innovative and inclusive
services for customers of all ages, weak, destitute or marginalized customers, vulnerable families in linewith the provisions of the Policy on Human Rights. In all the countries in which the Group operates, we
also provide forms of support that make it easier for certain sections of the population to pay electricity
and gas bills, thus allowing equal access to energy. One example is the action taken in Italy and Spain
through the so-called "social bonus", but also in Romania, Brazil, Peru and Colombia where initiatives havebeen promoted dedicated to providing adequate support to vulnerable sections of society and who inparticular are affected by the increase in energy costs.

We apply the circular economy throughout the goods’ lifecycle: from the design stages of the supply
chain to their use and ultimately reuse in a new cycle at the end of their service life.
Enel pursues the objective of separating its business from the consumption of resources; to monitor thistransition to circularity, we have developed an “Economic CirculAbility” KPI, which takes the Group’s overall
EBITDA (in euros) and compares it with the amount of resources consumed, both fuel and raw materials,
throughout the value chain by the different business activities (expressed in tons). Enel has committed
to doubling its performance in relation to this KPI by 2030 compared to 2020, i.e. to halve the amount of
resources consumed compared to the EBITDA generated.
Enel guarantees investments aimed at supporting the energy transition while ensuring the continuous
maintenance of existing plants to make them resilient and enable them to meet the challenges of climatechange.

4
4

Relevant
SDG

16

17

8

12

7

9

11

13

11

12

12

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Civil society andlocal and global
communities
Enel people
Businesses and tradeassociations
Suppliers andcontractors

Soundgovernance

Civil society andlocal and global
communities
Businesses and tradeassociations
Suppliers andcontractors

Engaging
communities

Civil society andlocal and global
communities
Suppliers andcontractors
Businesses and tradeassociations

Sustainablesupply chain
Human rights
management

Civil society andlocal and global
communities
Customers
Enel people
Suppliers andcontractors

Cleanelectrification

Businesses and tradeassociations
Civil society andlocal and global
communities
Customers

Cleanelectrification

Businesses and tradeassociations
Civil society andlocal and global
communities
Customers
Suppliers andcontractors

Circular economy

Businesses and tradeassociations
Civil society andlocal and global
communities
Enel people
Customers
Suppliers andcontractors
Financial community

Zero emissions
ambition

Materiality analysis

569

The impacts and associated material topics that have been
determined through this process are used to identify thefinancial risks and opportunities related to the organization’s impacts and for financial assessment purposes.
As regards financial materiality, in 2022 the Group conducted an assessment, analyzing and identifying the material topics from a financial perspective, namely thosethat affect or could affect the Company’s financial condition or operating results, and are therefore most relevant
to investors.
The financial materiality analysis was performed by each
Local Sustainability and Holding unit, in order to assess
the significance of impacts arising from the external context. This entailed the involvement of relevant stakeholders
and experts within the organization who have a close relationship with the main stakeholders, and thus a comprehensive view on sustainability aspects related to risks andopportunities that influence or may influence substantially the Company’s cash flows, development, performance,
positioning, cost of capital or access to borrowings in the
short, medium or long term.
In conducting the financial materiality analysis, Enel also
considered the relevance of ESG topics according to the
SASB Standard for the prevailing Electric Utilities sector
and the Gas Utilities, Solar Technology and Wind Technology sectors.

(4)

70

On the basis of the financial materiality assessment, for reporting purposes the most significant potential(4) positive
and negative impacts were selected according to theirhighest degree of significance for each topic of the materiality analysis. The table below shows:• the most significant impacts – associated with ESG

megatrends, the material topic (1st, 2nd, 3rd Level) andrelated GRI – both positive and negative in suffered directly and indirectly by the Company from the external
context;• the time horizon for their occurrence (short-, mediumor long-term);• impact management: the Company strategies and performance, in line with the management of the main typesof risk faced by the Enel Group;• alignment with the SASB Standard for the prevailingElectric Utilities sector and the Gas Utilities, Solar Technology and Wind Technology sectors, and the material
topic (1st Level) related to the impact;• additional information: whether the reported impact isor could be a human rights concern; the reference SDGs;
the phase of the value chain affected by the impact; thestakeholders that can or could be positively or negatively affected by the impact; whether the topic related to
the reported impact is a priority for the stakeholders involved in the materiality analysis process; reference to
the Sustainability Plan and to the chapter of the Reportthat describes in detail the management methods andresults related to the impact.

For financial reporting input purposes, the financial materiality analysis looked at the actual and potential impacts suffered by the Company from a financial
point of view. However, in order to select the most significant impacts for reporting, it focused on potential ones with a view to assessing the potential economic effects on the Company.

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

Materiality analysis

5

Appendix

71

POSITIVE IMPACTS

Table of the most significant
significant impacts
ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI(2)Climate change,
Resources
preservation

Decarbonizationof the energy
mix

Climate change – Adaptation to
extreme weather events

Promoting the establishment andtimely implementation of adaptationplans to improve the resilienceof plants to natural disasters andrespond promptly to regulatorychanges, helping to reduce potential
costs and losses due to damage
and/or operational failures

GRI 201: Economic
performance
performance

SASB(1)

Duration(3)GRI 305: Emissions
GRI 304: Biodiversity
GRI 303: Water andeffluents
DMA (former EU23):
Access to energy
System efficiency
efficiency (EU12)

Urbanization,
Digital revolution

Infrastructureand networks
SASB(1)

Resources
preservation

SASB(1) Preservation of

ecosystems andenvironmental
management

Well-being
SASB(1)

New governancemodels

Improvement and development of
networks – Improvement of quality inenergy distribution

Increased investment ininfrastructure resilience to reduceclimate risk

System efficiency
efficiency (EU12)

Environmental governance –Environmental policies

Anticipating changes in national
and international legislation andstandards through the adoption ofan overcompliant strategy aimed ata role as a global environmental best
performer with respect to the mostperformer
stringent regulatory compliancerequirements
Decrease in the number ofworkplace injuries to workers andcontractors, thanks to an adequate
social and cultural context on healthand safety topics

GRI 2-27: Compliancewith laws andregulations

Positive financial
financial perf
performanceormance as aresult of the implementation of good
corporate governance practices,
relevant for key ESG indices andinvestors

GRI 2-2-23: Policy
commitments; 2-24:
Embedding policy
commitments; 2-25:
Processes to remediate
negative impacts

Occupational
health andsafetyWorker safety – Promotion of aworker safety culture
Safety of contractors working at Enelsites – Promotion of a safety culture
among contractors working at Enel
sites

Sound
governance andfair corporate
conduct

Fairness and transparency incommunication – Fairness andtransparency of ESG information

GRI 403: Occupational
health and safety
GRI 410: Safety
practices

GRI 206: Anticompetitive behavior
Increase ininequalities

SASB(1) Sustainablesupply chain

New economy,
Products andDigital revolution,
services for
New mobility,
electrificationelectrification
Urbanizationand digitalization
SASB(1) Innovation,
New economy,
Resources
circular economy
preservationand digitaltransformation

New economy, New
governance models

Economic andfinancialfinancial value
creation

Priority for stakeholders and the Group

Changes in consumer behaviour
towards more sustainable, electrified
electrified
and digitalized solutions

Circular economy – Use ofsustainable inputs, Dissemination of
circular economy culture

Increased reuse of materials thanks
to the adoption of circular economy
practices

GRI 301: Materials

Investment attraction
attraction

Creation of new markets andsustainable financefinance products
consistent with the investment
framework, activating greater publicresources for decarbonization andaccess to financial
financial resources in linewith energy transition objectives
and the related impact on costs andon financefinance charges; introduction ofsubsidised support tools (funds andcalls) for the transition.

GRI 201: Economic
performance
performance

Impact relevant on human rights(2) “-” is reported where the material topic is not currently covered by a specific GRI(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)2722022 Sustainability Report
Sustainability Report 2022

GRI 415: Public policy
GRI 204: Procurement
practices

Responsible management of the
procurement of goods, services andwork – Integration of environmental,
safety and sustainability criteria
and performance
performance in purchasing
management
New technologies and solutionsfor Homes, Condominiums, Cities,
Industry and financial
financial activities

Improving brand reputation
by working with sustainabilitycompliant suppliers(1) SASB

GRI 308: Supplier
Environmental
Assessment

GRI 306: Waste

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

Long term (>5 years)

11

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

The Group adopts solutions for adaptation to weather and climate events in order to manage effectively
chronic and acute phenomena of interest for each activity and Business Line. Adaptation solutions may
concern both actions implemented in short-term and long-term decision making, such as the planningof investments in response to climate phenomena. Adaptation activities also include procedures, policies
and best practices. For new investments, action can also be taken early in the design and construction
phase to reduce the impact of climate risks by through risk and vulnerability assessments at the design
stage, and to take any chronic effects into account (e.g. the inclusion of climate scenarios in long-term
renewable resource estimates).

In the Enel Grids Business Line, the Enel Group has adopted an approach known as “4R” to cope withextreme weather events (1. Risk Prevention; 2. Readiness; 3. Response; 4. Recovery). In a suitable policy, itdefines the measures required, both when preparing for an emergency on the grid, and to quickly restore
service ex post, i.e. once the climatic events have caused damage to the assets and/or disconnections.
Enel plays an active and leadership role in international meetings and in the discussion and application of
new national and international standards regarding environmental topics 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 linked to simple environmental
regulatory compliance, mitigates the risk of impacts on the environment and on human rights, of legal
disputes and misalignment with the benchmark international standards that represent best practices.
Enel considers the health, safety and psychological and physical well-being of individuals to be themost precious asset to be protected at all times of life, at work, at home and during leisure time. In thiscontext, the Group promotes a context based on principles of health and safety, through global and local
awareness raising campaigns to promote healthy lifestyles, screening programs aimed at preventing theonset of illnesses, vaccination campaigns and availability of medical services. This structured approachis described in the new version of the “Health and Well-being” Policy, and defines in three main steps– health surveillance, prevention and well-being – the path for promoting good health and well-being.
Enel’s commitment is also demonstrated in the Group’s Policy on Human Rights, the “Declaration ofCommitment to Health and Safety” and the “Stop Work Policy”.
Enel has adopted as part of its corporate governance specific compliance programs, i.e.: the Code of
Ethics, the Zero Tolerance of Corruption Plan (“ZTC Plan”), the Policy on Human Rights, the Policy oninternational sanctions, the Enel Global Compliance Program (“EGCP”), the Model pursuant to Italian
Legislative Decree 231/01 and other national compliance programs adopted by Group companies inaccordance 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 compliancewith the requirements of international standard ISO 37001:2016 (international certification of anti-bribery
management systems).
Enel promotes partnerships with companies that maximize their positive impacts on the environment andhas created partnerships to increase the sensitivity and overall level of sustainability in the value chain.
It has also organized numerous meetings with contractors on the topics of decarbonization, circularity,
human rights and supply chain mapping, with the aim of sharing common practices and approaches andof pushing the supply chain towards the sustainability standards required by the international community.
The energy sector is changing, and at the same time the way we use energy is evolving. Enel is therefore
committed to creating and offering individuals, companies and government bodies products and services
to make everyday life, from mobility to home automation, easier and more efficient.
We apply the circular economy throughout the goods’ lifecycle: from the design or purchase stages
through to their use and reuse in a new cycle at the end of their service life. In order to minimize the useof scarce natural resources, Enel defines and implements circular economy practices along all businesslines, involving both its supply chain and end customers.

At Enel, sustainable finance plays a crucial role in supporting the growth of the Group which, throughthe recognition of the value of sustainability, contributes to a gradual reduction in the cost of debt.
Sustainable finance means synergy between private and public finance. Private finance conveys private
capital towards sustainable investments, i.e. for the benefit of companies whose strategic action isintended to achieve certain sustainability objectives, reflecting the economic and financial value ofsustainability in a lower cost of debt. Public finance, on the other hand, stimulates the creation ofsustainable investments, through grants and loans at subsidized interest rates.

4
4

Relevant
SDG
13

9

13

6

12

14

15

16

8

16

12

11

12

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Businesses and tradeassociations
Civil society andlocal and global
communities
Customers
Financial community
Enel people
Institutions
Media
Suppliers andcontractors
Businesses and tradeassociations
Civil society andlocal and global
communities
Customers
Businesses and tradeassociations
Civil society andlocal and global
communities
Institutions

Zero emissions
ambition

Enel people
Suppliers andcontractors

Occupational
health and safety

Financial community
Businesses and tradeassociations

Sound
governanceOur commitment
to continuous
improvement

Financial community
Suppliers andcontractors

Sustainablesupply chain

Customers

Cleanelectrification
Digitalization

Businesses and tradeassociations
Civil society andlocal and global
communities
Suppliers andcontractors
Businesses and tradeassociations
Financial community
Institutions

Circular economy

Materiality analysis

Cleanelectrification

NatureConservation ofnatural capital

Zero emissions
ambition
Our commitment
to continuous
improvement

373

NEGATIVE IMPACTS

Table of the most significant
significant impacts
ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI (3)Climate change

Decarbonizationof the energymix(2)

Climate change – Adaptation to
extreme weather events(2)Increase in extreme weather events(e.g. cyclones, droughts, floods,
floods,storms, heat waves and fires)
fires) due toclimate change, resulting in damage
or reduced efficiency
efficiency of power
generation and distribution facilities
and supporting
supporting infrastructure,causing capacity to be downgraded,
operations temporarily stopped or
shut down completely.

GRI 201: Economic
performance
performance

SASB(1)

Urbanization,
Digital revolution

Infrastructureand networks

Operational grid management –Grid maintenance

SASB(1)

Resources
preservation

SASB(1) Preservation of

ecosystems andenvironmental
management

Well-being

Environmental governance –Environmental policies

Potential damage to the network
caused by third parties
parties causing
malfunctions in the continuity of theservice provided and with possible
penalties for failure to restore within
the established timeGRI 305: Emissions
GRI 304: Biodiversity
GRI 303: Water andeffluents
DMA (former EU23):
Access to energy
System efficiency
efficiency (EU12)DMA (former EU23):
Access to energy
System efficiency
efficiency (EU12)

Stricter and emerging legislationon activities, products and/or
services aimed at reducing theenvironmental impact on natureand local communities, resulting inincreased operating costs and fines,
fines,
loss of licenses and/or revenues orblocked assets
Increase in the number of workplace
injuries to workers and contractors,
due to an inadequate social andcultural context on health and safety
topicsGRI 2-27: Compliancewith laws andregulations

Occupational
health and safety

Worker safety – Promotion of aworker safety culture
Safety of contractors working at Enelsites – Promotion of a safety culture
among contractors working at Enelsites

Inclusion andgender equality,
Future work

Peoplemanagement,
development
and motivation

People development – Upskilling andReskilling

Lack of institutional support toincentivize and promote newskills and job opportunities
opportunities in theorganization

GRI 404: Training and
Education

New governancemodelsSoundgovernance andfair corporate
conduct

Fairness in management conduct

Rising demand for corporatetransparency and accountability
from the financial
financial community,
impacting ESG ratings and securities
performance
performance

GRI 1: Foundation

SASB(1)

Duration(3)GRI 403: Occupational
health and safety
GRI 410: Safety
practices

GRI 2-2-22: Statementon sustainable
development strategy;
2-23: Policy
commitments
GRI 2-2-23: Policy
commitments;
2-24: Embedding policy
commitments
GRI 205: Anticorruption
GRI 206: Anticompetitive behavior
GRI 415: Public policy

Priority for stakeholders and the Group

Impact relevant on human rights(1) SASB

Material topic from a financial
financial point of view for SASB
(Sustainability Accounting Standards Board)(2) The climate and biodiversity crises are linked. As stated in the report by the workshop co-sponsored by IPBES-IPCC on biodiversity and climate change, “limiting global
warming to ensure a habitable climate and protecting biodiversity are mutually supporting goals, and their achievement is essential for sustainably and equitably
providing benefits to people.”
Climate change is one of the main causes of biodiversity loss, given that the destruction of ecosystems undermines nature's ability to regulate greenhouse gas (GHG)
emissions and to protect itself from extreme weather conditions, thus accelerating climate change and increasing its vulnerability.
(3) “-” is reported where the material topic is not currently covered by a specific GRI(4) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)2
742022 Sustainability Report
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Long term (>5 years)

11

Letter to Stakeholders
Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

Enel makes use of procedures to manage adverse events through monitoring activities, weather forecasts
and short-, medium- and long-term scenario analysis, to 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 plant and grid operating
conditions following adverse events.

Enel promptly monitors network operations, to carry out maintenance on the infrastructure existing in all
countries, to improve the quality of the service delivered and reduce the number and duration of outages(SAIDI and SAIFI).

In relation to risks that may arise from regulatory factors and developments in legislation, Enel has
intensified its relations with institutional bodies, and is proactive in the removal/reduction of all potential
elements that could compromise its positive environmental and social impact.

The health, safety and psychological and physical well-being of individuals is the most precious asset to
be protected at all times of life. In order to promote a suitable context in terms of health, safety and wellbeing within the perimeter of the Enel Group, with the aim of implementing plans composed of preventive
measures and measures to protect the health of workers and anyone working for the Group, on both alocal and global level. A listening and psychological support service was renewed for 2022, the purposeof which is to provide workers with a customized help program in an anonymous, free and confidential
manner.
Enel has developed upskilling and reskilling programs to support the energy transition: upskilling
programs focus on developing existing professional skills, adding new skills based on the needs dictatedby innovative technologies and processes; reskilling programs are aimed at creating new professional
profiles, replacing skills that have become obsolete or are no longer needed, and which enable people towork on new activities.

4
4

Relevant
SDG
13

7

9

6

12

14

15

16

8

4
10

Enel maintains dialogue with investors based on principles of fairness and transparency, in compliance with 16
EU and national regulations on market abuse, as well as in line with international best practices. In orderto regulate the methods for developing dialog with the financial community, Enel has adopted a specific
Policy (the “Engagement Policy”), which clarified to a large extent the practices already followed by Enel,and also took into account the best practices adopted with regard to corporate governance.
By means of dialog with shareholders and bondholders, the Enel Investor Relations unit constantly collects
feedback on how to integrate and improve the Group’s reporting process and make its communications aseffective as possible, meeting the needs of the financial markets.

8

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Civil society andlocal and global
communities
Customers
Financial community
Enel people
Suppliers andcontractors

Zero emissions
ambition

Civil society andlocal and global
communities
Customers
Media
Enel people
Suppliers andcontractors
Businesses and tradeassociations
Civil society andlocal and global
communities
Financial community
Institutions

Cleanelectrification

Enel people
Suppliers andcontractors

Occupational
health and safety

Civil society andlocal and global
communities
Institutions
Enel people
Suppliers andcontractors
Businesses and tradeassociations
Financial community

Empowering EnelpeopleMateriality analysis

NatureConservation ofnatural capitalSound
governanceOur commitment
to continuous
improvement

375

NEGATIVE IMPACTS

ESG megatrend

Material topic(I level)

Material topic(II, III level)

Description of the impact

Relevant GRI (2)Increase ininequalities

SASB(1) Engaging local

Social and economic development ofcommunities – Transfer of skills andupskilling among the local population

Lack of skilled workforce among
GRI 413: Local
members of the community in which communities
the Company operates

Increase ininequalities

SASB(1) Sustainable

Respect for human rights in the
supply chain – Integration of humanrights and labor rights criteria
and performance
performance into fuel supply
management

Reputational damage due to theCompany’s suppliers’ failure torespect workers’ rights

GRI 414: Supplier Social
Assessment

SASB(1) Products andNew economy,
Digital revolution,
services for
New mobility,
electrification
Urbanizationand digitalization

New technologies and solutionsfor Homes, Condominiums, Cities,
Industry and financial
financial activities

Poor availability of raw materials,
products and spare parts
parts forconstruction and installation,
resulting in delays and priceincreases-

Empoweredcustomer

Quality relations with customers– Effective
Effective and fair relations withcustomers

Low customer loyalty andsatisfaction due to poor-quality
service

GRI 417: Marketing andlabelling

and global
communities

supply chain

SASB(1) Customer

centricity

New economy,
Digital revolution

Innovation,
circular economy
and digitaltransformation

Digitalization and cyber security –Cyber security

Cyber attacks
attacks by cyber criminals,
cyber activists, state-sponsoredaction groups impacting business
continuity, asset functionality andsensitive data protection

New economy, New
governance models

Economic andfinancial value
financialcreationLong-term value creation strategy– Business Ownership model,
Business Stewardship modelInsufficientInsufficient actions and tools
by institutions to support anacceleration of the energy
transition, resulting in uncertainty
uncertainty
and slowdown for investments
in renewable and low-carbon
technologies

Priority for stakeholders and the Group

Impact relevant on human rights(2) “-” is reported where the material topic is not currently covered by a specific GRI(3) Duration:
Short term (up to 1 year)
Medium term (2 to 5 years)

4762022 Sustainability Report
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(1) SASB

Duration(3)-GRI 201: Economic
performance
performanceGRI 2-2-6: Activities,
value chain and otherbusiness relationships

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

Long term (>5 years)

11

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Letter to stakeholders

22
Our sustainable progress
We empower sustainable progress

3
3

Materiality analysis
Materiality analysis

Impact management

Enel is committed to promoting training programs dedicated to the local communities in which it
operates, as well as training projects developed with local institutions aimed at the socio-economic
development of communities.

The selection of the best partners and the execution of contracts according to the highest standards ofsustainability are guaranteed by our analysis and monitoring of the entire procurement process:• during the qualification stage, potential suppliers are evaluated according to criteria related to humanrights (including occupational health and safety) and the impact of their activities on the environment;• during the tender stage, there are specific mandatory sustainability requirements and reward factors(sustainability K), in order to contribute to the promotion of responsible practices at a systemic level;• throughout the term of the contract, Enel monitors compliance with the requirements and reward
factors (Supplier Performance Management).
Enel is committed to minimize any risks associated with the availability of goods/raw materials and related
price volatility through:• early contracting for procurement;• diversification of supply sources, in terms of suppliers and geographical areas;• use of derivative financial instruments to hedge exposure.
The Group is committed to guaranteeing a high level of service quality and to maximizing customer
satisfaction, anticipating market needs in order to ensure reliable responses and establish lasting relations
based on dialog, collaboration and trust: aspects that refer 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(improvement in communications over contact channels and back office processes, as well as monitoringof complaints, reporting and requests for information).
Enel also monitors the rate of customer satisfaction in every country in which it operates, with timely
analyses aimed at understanding progress and at prompt implementation of any corrective actions.
Enel respects the confidentiality and rights to privacy of its stakeholders and is committed to the properuse of the data and information provided by people who work with the Group, by customers and by otherstakeholders. This commitment is also reflected in the Group's Policy on Human Rights. The Group has
designed and adopted a holistic framework of processes aimed at governance of cyber security topics,
applicable across the board to the Information Technology (IT), Operational Technology (OT) and Internetof Things (IoT) sectors. Moreover, the Group has defined and adopted a risk management method for
IT security in accordance with risk-based and “cyber security by design” approaches, by integrating thesafety requirements along the entire solution and service life cycle. In particular, the framework adopted
by the Group addresses the monitoring of cyber risks, through eight processes aimed at: ensuring cybersecurity governance by guiding the strategy and issuing policies and procedures to respond to the main
existing and emerging national and international regulations on cyber security; identifying and assessing
cyber risks, by defining and implementing the related processing actions; providing architectural
guidelines and engineering support for the protection of the Group's solutions and infrastructures (IT/OT/
IoT); monitoring the IT security posture through process and technology checks; guiding and managing
cyber incident prevention and response activities; managing the entire life cycle of the Group's digital
identities and access control; guiding and managing training and awareness initiatives on cyber security
at Group level, by leveraging behaviour and the human factor.
In relation to risks that may arise from regulatory factors, relations were intensified with local governmentand regulatory bodies, adopting an approach based on transparency, collaboration and proactiveness inaddressing and removing sources of instability of the legislative and regulatory framework.
In addition, for improved orientation of the strategic development guidelines, the evolution of the external
context and the competitive landscape are constantly monitored, both inside and outside the utilities
world.

4
4

Relevant
SDG
4

8

12

9

12

11

9

8

11

Our performance
Our performance

Stakeholders involved

Stage invalue chain

Appendix
Appendix

55Ref. in Sustainability Plan and2022 Sustainability
Report chapter

Civil society andlocal and global
communities
Suppliers andcontractors
Enel people

Engaging
communities

Suppliers andcontractors
Businesses and tradeassociations
Enel people
Civil society andlocal and global
communities

Sustainablesupply chain
Human rights
management

Customers
Suppliers andcontractors

Circular economy

Civil society andlocal and global
communities
Customers

Cleanelectrification

Enel people
Civil society andlocal and global
communities
Customers

Digitalization

Businesses and tradeassociations
Civil society andlocal and global
communities
Customers
Financial community
Institutions
Suppliers andcontractors

Zero emissions
ambition

Materiality analysis

577The material topics
3-1

3-2

3-3

The impact analysis model is of fundamental importanceas it enables the Company to identify the material topics
and focus on the best way to manage them, both in termsof risk management as well as in terms of strengthening
opportunities. In addition, the Company must recognize its
strategic priorities, taking into account also the view of its
stakeholders. Identifying the priority ESG topics with which
the Company wants to engage therefore strengthens the
profile of impact management.
The assessment of the impacts generated and suffered
and their relative significance guides the identification of
the material topics: identify, within each 1st Level material

78

Sustainability Report 2022

topic, which 2nd-3rd level topics are material. The resultof this analysis are used to help identify and define the objectives to be included in the Strategic Plan and the Sustainability Plan, the achievement of which is contributed toby the various Group Functions and Business Lines, as wellas the topics covered by the Sustainability Report and other Corporate Reporting documents.
The list of 1st, 2nd and 3rd Level material topics is provided below together with the respective reference GRI as amonitoring and management indicator and the reference
to the Sustainability Plan and Sustainability Report 2022.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Material topics
Material topics (1st level) Material topics (2nd, 3rd level)• Climate change– Reduction of CO emissions• Climate change– Adaptation to extreme weather
2

Decarbonization of
the energy mix

BUSINESS & GOVERNANCE

Innovation,
circular economy
and digitaltransformation

eventsfor homes, condominiums, cities,
industries and financial activities• Electric mobility– Deployment of infrastructures for

Zero emissions ambition• GRI 305: Emissions• GRI 304: Biodiversity• GRI 303: Water and effluents• GRI 201: Economic performance• DMA (former EU23): Access to energy• System efficiency (EU12)• GRI 302: Energy

commercial offer

Zero emissions ambition

Conservation of natural
capitalInnovation

Digitalization
Circular economy
NatureConservation of natural
capital-*Clean electrification
Digitalization-*

Clean electrification Electrification of uses

electric mobility• Ability to meet customer needs– Quality and timeliness of the
Customer
centricity• GRI 305: Emissions• Use of energy– Reduction of energy consumption-*• Ecosystem of innovation andsustainability– Promotion of partnerships– Development of the Innovation
Hub&Lab network– Support and relationship withstart-ups– Intellectual property– Dissemination of a culture ofinnovation and sustainability– Crowdsourcing-*• Digitalization and cyber security– Cyber Security• Circular economy• GRI 301: Materials– Dissemination of a culture of a
• GRI 306: Waste
circular economy– Use of sustainable input• New technologies and solutions

Products andservices forelectrification anddigitalization

Ref. Sustainability
Plan and Sustainability Report 2022

GRI

Growth accelerators digitalization• GRI 417: Marketing and labelling• DMA (former EU23): Access to energy• Communication of DMA EU

Clean electrification

information (former EU24)• Quality of customer relations• GRI 417: Marketing and labelling– Effective and fair relationship with

Clean electrification

customers• Improvement and development ofgrids– Development of microgrids and• DMA (former EU23): Access to energy

Clean electrification• Improvement and development ofgrids– Improvement of the quality in• System efficiency (EU12)

Clean electrification• Operational management of grids– Grid maintenance• DMA (former EU23): Access to energy• System efficiency (EU12)

Clean electrification

rural electrification

Infrastructure andnetworksenergy distribution*

2- : the material topic is not currently covered by a specific GRI.

2022 Sustainability Report

Materiality analysis

79

Material topics (1st level) Material topics (2nd, 3rd level)• Fairness in management conductGRI• GRI 205: Anti-corruption• GRI 2 - 2-23: Commitment in

BUSINESS & GOVERNANCE••••
Sound governanceand fair corporate
conduct

Sound governanceterms of policy, 2-24: Integration ofcommitments in terms of policy
GRI 415: Public policy
GRI 206: Anti-competitive behavior
GRI 1: Fundamental principles
GRI 2-2-22: Declaration on thesustainable development strategy,
2-23: Commitment in terms of policy,
2-24: Integration of commitments interms of policy• Structure of the Board of Directors • GRI 406: Non-discrimination
and Top Management• GRI 2 - 2-9 Structure and– Balanced structure and diversity of composition of governance, 2-10:
the Board of Directors

Ref. Sustainability
Plan and Sustainability Report 2022

Sound governanceAppointment and selection of thehighest governance body

• Fair and transparent communications • GRI 415: Public policy– Fairness and transparency of ESG • GRI 206: Anti-competitive behavior
information• GRI 2 - 2-23: Commitment in

Our commitment tocontinuous improvement

terms of policy, 2-24: Integration ofcommitments in terms of policy, 2-25:
processes targeted toward remedying
negative impacts• Investment attraction
Economic andfinancial value
creation

Occupational
health and safety• GRI 201: Economic performance

Zero emissions ambition
Our commitment tocontinuous improvement• Long-term value creation strategy– Business Ownership model– Business Stewardship model• GRI 201: Economic performance• GRI 2 -2-6: Activities, value chain andZero emissions ambition• Health and safety of workers ofcontractors operating on Enel sites– Promotion of a culture of safety• GRI 403: Occupational health andsafety• GRI 410: Safety practices

Occupational health andsafety• Worker health and safety– Promotion of a safety culture
among workers– Management and monitoring of• GRI 403: Occupational health andsafety• GRI 410: Safety practices

Occupational health andsafety• Quality of corporate life
– Work-life balance• GRI 401: Employment

Managing human rights• People development– Hiring and remuneration policies– Upskilling and reskilling• Valuing worker diversity– Valuing disabilities– Valuing age diversity– Valuing gender diversity– Valuing other diversities• GRI 401: Employment• GRI 404: Training and education

Empowering Enel people• GRI 405: Diversity and equal

Empowering Enel people–

among workers of contractors
who operate at Enel sites
Management and monitoring ofcontractor safety

other business relations

Clean electrification

SOCIAL

worker safety

Peoplemanagement,
development andmotivation

Empowering Enel people

opportunity

Managing human rights

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Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Material topics (1st level) Material topics (2nd, 3rd level)• Responsible management of the

procurement of goods, services andworks
Integration of environmental,
safety and sustainability
performance criteria inprocurement management–
Sustainable supply
chain• Respect for human rights in the
supply chain– Integration of the criteria

Materiality analysis

4

Our performanceGRI• GRI 204: Procurement practices• GRI 308: Supplier Environmental
Assessment• GRI 414: Supplier Social Assessment

5

Appendix

Ref. Sustainability
Plan and Sustainability Report 2022
Sustainable supply chain
Managing human rights

Sustainable supply chain
Managing human rights

SOCIALand performance related tohuman rights and labor in the
management of fuel procurement

Engaging local andglobal communities• Social and economic development of • GRI 413: Local communities
local communities– Development and maintenance ofthe local supply chains– Employment development in theareas of presence– Infrastructural development in theareas of presence– Transfer of skills and––Engaging communities

reinforcement of the skills of thelocal population
Support for entrepreneurial
activities in the community
Access to primary goods• Consultation with the local

community in the development of
new projects
Dialog, sharing and engagement incommon objectives• GRI 413: Local communities

Engaging communities• GRI 303: Water and effluents• GRI 306: Water effluent and waste

NatureENVIRONMENT–

4• Water management– Treatment, recycling and use ofwastewater

Preservation of
ecosystems andenvironmental
management• Protection of biodiversity and natural • GRI 304: Biodiversity
capital– Conservation and promotion of

NatureConservation of natural
capitalthe local natural heritage• Environmental governance– Environmental policies

2022 Sustainability Report• GRI 2-27: Compliance with laws andregulations

Conservation of natural
capitalNatureConservation of natural
capitalMateriality analysis

81

TOPIC VIEW

4.

82

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Our performance
Ambition of zero emissions and clean
electrification
lies at the heart of the strategy we are implementing
in a sustainable and innovative way, to favora just transition.
People are the mainstays ofsustainable progress,
not only ours, but also customers, suppliers,
communities, institutions, the financial community,
the media, companies and trade associations.
Innovation, circular economy, digitalization andsustainable financeare the growth accelerators, and embrace andenhance all strategic themes across the board.
Protection of nature and respectfor human rights
form our daily commitment to the current andfuture generations.

83

Zero emissions ambition

Material topics (I level)

Plan

SDG

• Decarbonization of theenergy mix

Doublemateriality

Zero emissions
ambition

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

Activities

2022 results

13

Reduction in GHG Scope 1
emissions intensity relating to power
generation(1)Reduction of GHG emissions intensity
Scopes 1 and 3 relating to Integrated
Power(1)Climate change

13

Progress2023-2025 targets

Tag• 229 gCO /kWh
• -40% vs 2017

• 130 gCO /kWh in 2025
• -80% in 2030 vs 20172eq

E

• 218 gCO /kWh
• -36% vs 2017

• 135 gCO /kWh in 2025
• -78% in 2030 vs 20172eq

E• 22.9 MtCO
• -10% vs 2017

• 20.9 MtCO in 2025
• -55% in 2030 vs 2017E

-55% in 2030 vs 2017E

600 people involved in the
period 2023-2025

E

2eq

(2)

2eq

(3)

13

Reduction of absolute GHG Scope 3
emissions relating to Gas Retail

13

Reduction of additional absolute GHG
emissions (Scopes 1+2+3)(1)-24% vs 2017(4)13MBA-PhD training about resilienceand energy transition in the countries
where the Group operates

204 people involved

17

2eq

2eq

N.A.

S
G

(1)

The values of the reduction percentages were calculated on an equal perimeter basis, and therefore take into account the 2017 baseline and the 2022 value,both restated to exclude GHG emissions from assets disposed in the 2017-2022 period, in accordance with SBTi.
(2) The restated value that excludes GHG emissions from assets in operation during 2022 and disposed before the end of the year is 217 gCO2eq/kWh.
(3) The restated value that excludes GHG emissions from assets in operation during 2022 and disposed before the end of the year is 210 gCO2eq/kWh.
(4) The restated value that excludes GHG emissions from assets in operation during 2022 and disposed before the end of the year is 17.5 MtCO2eq.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable

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Sustainability Report 2022

Achieved

1

Letter to stakeholders

SDG
7

We empower sustainable progress

3

Materiality analysis

Activities

2022 results

Promoting the energy transition
through conversion projects withthe aim of finding new solutions andways of using them to develop energy
conversion, the circular economy,
while also promoting innovation(5)Porto Tolle: demolition underway
Augusta: demolition completed
Bari: demolition completed
Livorno: Memorandum ofUnderstanding signed between
Enel Logistics and the local
port authority, change of use
underway
Litoral: “Call for Projects”
launched

Progress

Conventional technologies

13

2

4

Our performance

52023-2025 targets
77 sites involved inrepurposing projects,(5)including:
Porto Tolle: construction of an
open-air tourist village by athird party; demolition by thecounterparty
Augusta: construction of an
innovative research and study
centre in areas no longer
used of the plant, dedicatedto sustainable reclamation,
solutions for mitigating theenvironmental impact of plants
and infrastructures, and otherareas relating to the energy
sector and plant species
Livorno: construction of alogistic-customs area in the site
areas
Bari: construction of an urban
park with multifunctional
areas (co-living, co-working,co-learning and green areas);
demolition by the counterparty
Montalto: launch of theIntegrated Intervention Programin 2023 for a new integrated
energy hub
As Pontes, Litoral, Compostilla,
Alcudia: continuous research to
implement novel initiatives for
new industrialization and energy
development in the areas
Teruel: Coal2RES internal
reconversion and social
development, training, newprojects in the industrial,commercial and tourism sectors
in the area

Appendix

Tag
I
E
S
T

(5) Third-party project initiatives could be developed where in-house redevelopment is not feasible.

Zero emissions ambition85

Zero emissions
ambition

Climate change represents the main global challengeof this century and Enel plays an active role in the fightagainst it, by leading the global energy transition towards
zero emissions.
As one of the first signatories of the 2019 “Business
Ambition for 1.5 °C” campaign promoted by United
Nations, Enel Group has publicly declared its commitment
to develop a business model in line with the Paris
Agreement (COP 21) objectives, to limit the average
global temperature increase to 1.5 °C.
In 2021, we have brought forward our commitment tozero emissions by ten years, from 2050 to 2040.
In 2022, we reached a historic new milestone by defining
a decarbonization roadmap that covers both direct andindirect emissions throughout the Group’s value chain.
Specifically, four targets have been defined, certified by
the Science-Based Targets initiative (SBTi) and in line withkeeping global warming within 1.5 ºC.
The roadmap currently envisages reducing all direct andindirect greenhouse gas (GHG) emissions by around
99% by 2040 compared to 2017 throughout the value
chain, beyond the overall threshold set by SBTi (90%). The
Group aims to achieve a 100% reduction in all emissions,with a view of overcoming exogenous factors in the(1) Includes generation from managed capacity of 25 TWh in 2025.

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Sustainability Report 2022

short to medium term such as the development of newtechnological solutions in the supply chain at large-scaleor the improvement of certain market conditions andpolicies.
Enel aims to promote electrification solutions poweredby renewable sources, complete the phase-out of fossil
fuels, accelerate renewable sources development, anddigitize and upgrade networks. Specifically:• by 2025, Enel will cover about 90% of its fixed-pricesales with carbon-free electricity, bringing renewables
to about 75% of total production.(1) In addition, progress
towards digitalization of networks will increase theshare of digitalized customers to around 80%;• by 2027, Enel will complete the phase-out of all its
coal-fired power plants;• by 2030, around 85% of the installed capacity will berenewable and 100% of network customers will be fully
digitalized;• by 2040 all installed capacity will be 100% renewable,
the Group will have phased-out both thermoelectric
generation and retail gas activities and 100% of theelectricity sold will be produced from renewablesources.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

132.9 MtCO

229 gCO /kWh

OVERALL GROUP CARBON FOOTPRINT(SCOPE 1, 2 AND 3)SCOPE 1 GHG EMISSIONS INTENSITYRELATING TO POWER GENERATION

125.8 in 2021 +5.6%

225 in 2021 +1.8%

2eq

5Appendix

2eq

218 gCO /kWh22.9 MtCO

63.3 %SCOPE 1 AND 3 GHG EMISSIONSINTENSITY RELATING TO
INTEGRATED POWER

ABSOLUTE SCOPE 3 GHG
EMISSIONS RELATINGTO GAS RETAILNET RENEWABLE
INSTALLED CAPACITYOUT OF TOTAL

203 in 2021 +7.4%

22.3 in 2021 +2.9%

57.5% in 2021 +5.8%

2eq

Enel will also lead its customers towards a decarbonizedelectrification of their consumption. Firstly, by increasing the share of renewable electricity consumption, Enelcustomers will reduce their indirect Scope 2 emissions;secondly, by expanding the portfolio of products and services to accelerate the electrification of other sectors,
such as transport and construction, while promoting energy efficiency solutions, customers will also reduce theirdirect Scope 1 emissions.
Through its business strategy, the Group is committed
to establish drivers, actions and investments required tocomplete the decarbonization and electrification roadmap, and identifying, assessing and managing the main
climate risks and business opportunities emerging fromthe energy transition.
Particular attention is placed on the climate change adaptation policies to increase the resilience of the assets
along the entire value chain, thereby limiting potentiallynegative impact and guaranteeing a safe and sustainableenergy service in all the countries in which the Group operates.
Enel is committed to carry out its direct and indirectpublic advocacy action in line with the Paris Agreement
and its objective of limiting global warming within 1.5 °C
through the engagement of institutional stakeholders,
trade associations, non-governmental organizations andacademics. Enel promotes its point of view on public policies in the fight against climate change and on the pathways of decarbonization and electrification.
In addition, Enel is fully aware of the intrinsic link between
climate change and nature loss. Rising temperatures,changes in precipitation patterns and extreme weather
events impact significantly on ecosystems, forests andbiodiversity. The decline of nature also affects the resilience of ecosystems to climate change, and the ability to capture carbon and generate benefits for society.
Therefore, Enel’s business model aims to synergisticallyaddress climate change and promote the protection and

2eq

conservation of nature, as an essential factor in its corporate strategy and everyday operations.
Similarly, there is a strong link between climate change
and the social dimension. An active role in the fightagainst climate change focusing on people requires ofdecarbonization strategies that stimulate social inclusion, and at the same time favors decent work, the pillarsof which – according to the International Labour Organization – are full productive employment, the guarantee ofrights at work, the expansion of social protection, and thedevelopment of social dialogue. As such, Enel fully supports the principles of a just transition, so that no one isleft behind even in the short term, and recognizes the relevance for its business of the social impacts arising fromits climate strategy, aimed at the progressive reduction ofemissions in line with the Paris Agreement.
In addition, as a result of a solid corporate governancesystem that defines roles and responsibilities, Enel’sBoard of Directors and Management oversee the main
decisions regarding climate.
In order to guarantee increased transparency in its communications and relationships with its stakeholders, theGroup periodically reports on its related activities aroundclimate change in line with the international standardsof the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) and is publicly committed to adopting the recommendations of theTaskforce on Climate-related Financial Disclosures (TCFD)
of the Financial Stability Board. The guidance from the“Enhancement and Standardization of Climate-Related
Disclosures” of the SEC (Securities and Exchange Commission), the standards issued on the EFRAG website, andthe ISSB’s recently published exposure draft are also taken into account.
For details on the alignment of the structure of thechapter relating to the TCFD recommendations, please
see the TCFD Content Index in the 2022 Sustainability
Report.

Zero emissions ambition

87Enel’s roadmap
to decarbonizationand electrification
TCFD: Metrics & Targets
In 2022, Enel carried out a full update of its decarbonization roadmap. The process was validated by the Science-Based Targets initiative according to the criteria andrecommendations related to short-term objectives andaccording to the SBTi Corporate Net Zero standard. This
review included updating existing medium-term (2030)
and long-term (2040) objectives, as well as setting new
targets, all aligned to a 1.5 °C pathway, as defined by the
SBTi, according to IPCC scenarios and other international
benchmarks.
The main updates are:• 2017 baseline was restated for all targets to exclude
those direct and indirect GHG emissions from assets
disposed in 2017-2022 period, including thermoelec-

tric and renewable plants and energy distribution assetsthat were disposed or are no longer consolidated within
Enel’s financial perimeter, in accordance with the GHG
Protocol and SBTi guidelines;• target ambition on Scope 1 GHG emissions intensity
relating to power generation has been improved, from82 gCO2eq/kWh to 72 gCO2eq/kWh by 2030. This target
covers all greenhouse gas emissions (including CO2, CH4
and N2O) deriving from the power generation processwith respect to total electricity and heat generated by
the Group (excluding pumped storage generation to
avoid possible double counting in the Scope 2 emissions
calculation).

Scope 1 GHG emissions intensity relating to power generation (gCO2eq/kWh)-80%
vs 2017365

1.5 °C-100%
vs 2017
1.5 °C

Short-term targets set in the Business Plans
2021-2023 / 2022-2024 / 2023-2025,
respectively.

275

229

246
218

148

140

Medium- and long-term targets validatedby SBTi in December 2022 according to the
Net Zero Standard and aligned with the 1.5 °C
pathway.

192

130

SBTi‘s 1.5 °C pathway, based on IPCC scenarios
and adjusted to Enel‘s baseline.

75

72(3)
Zero emissions
2017

baseline(restated)(1)(1)

2022(2)

2023

2024

2025

2030

2040

The 2017 baseline has been restated from 416 gCO2eq/kWh to 365 gCO2eq/kWh to exclude GHG emissions from assets disposed in 2017-2022 period, in
accordance with SBTi.
2022 value has not been restated and includes the GHG emissions of assets in operation during 2022 and disposed before the end of the year, according
to the consolidation guidelines of the Sustainability Report. The figure, excluding GHG emissions from these assets, is 217 gCO2eq/kWh, down 40%
compared to the restated baseline.
Target previously validated by SBTi in 2020 (1.5 °C pathway) of 82 gCO2eq/kWh.

(2)
(3)

Scope 1 and 3 GHG emissions intensity relating to Integrated Power (gCO2eq/kWh)
332

-78%
vs 2017
1.5 °C

258

218

-100%
vs 2017
1.5 °C

183

135

2017

baseline(restated)(1)

Sustainability Report 2022
2022(2)2025
2030

Short-term target set in the Business Plan
2023-2025.
Medium- and long-term targets validated by
SBTi in December 2022 according to the Net
Zero Standard and aligned with the 1.5 °C
pathway.

74

73
88

SBTi‘s 1.5 °C pathway, based on IPCC scenarios
and adjusted to Enel‘s baseline.

Zero emissions
2040

148
1

Letter to stakeholders

2

140

75

130

We empower sustainable progress

365

3

-80%
72(3)
vs 2017

Materiality analysis-100%
vs 2017

1.5 °C
275

2017
2022
2023
2024
2025
2030
246
• targeton Scope 1 and 3 GHG emissions intenbaselineambition229(2)

1.5 °C Zero emissions

2040

Net Zero Standard and aligned with the 1.5 °C
pathway.
4
5
Our performance
Appendix
SBTi‘s 1.5 °C pathway, based on IPCC scenarios
and adjusted to Enel‘s baseline.
Short-term targets set in the Business Plans
2021-2023 / 2022-2024 / 2023-2025,
respectively.

rect GHG emissions (Scope 3) from power generation
Medium- and long-term targets validated
electricity purchasedbyandto end2022
customers
ele192
SBTi soldin December
according (anto theNet ZeroStandard
and alignedwith the1.5 °Cmentofthe
3-FuelandEnergyRelatedActivities
subcafrom 83 gCO2eq/kWh to148
73 gCO2eq
/kWh
by
2030.
This
75 /kWh to exclude GHG emissions from
(1) The 2017 baseline has been restated from140
416 gCO2eq/kWh
assets disposed in 2017-2022 period, in
130to 365 gCO
pathway.
2eq
tegory of the GHG protocol Scope 3 standard), divided
targetis calculated
accordancewith SBTi. as the combination of direct Group(3)(2) 2022 value has not been restated and includes the GHG emissions of72
assets in operation during 2022 and disposed before the end of the year, according
by power
generation (including heat and excluding pumGHG
emissions (Scope 1 – including CO2, Report
CH4 andN2O) excluding GHG
to the consolidation guidelines of the Sustainability. The figure,emissions from these assets, is 217 gCO2eq/kWh, down 40%
comparedto the restatedbaseline.
ped Zeropowerstorage) and purchase of electricity;fromelectricity
and heat
generation and Group indiemissions(1)(restated)
sity
relating to Integrated Power 218
has been improved,(3)

Target previously validated by SBTi in 2020 (1.5 °C pathway) of 82 gCO2eq/kWh.

2017baseline(restated)(1)2022(2)

2023

2024

2025

2030

2040

Scope 1 and 3 GHG emissions intensity relating to Integrated Power (gCO2eq/kWh)
(1)

(2)
(3)

The 2017 baseline has been restated from 416 gCO2eq/kWh to 365 gCO2eq/kWh to exclude GHG emissions from assets disposed in 2017-2022 period, in
accordance with SBTi.
2022 value has not been restated and includes the GHG emissions of assets in operation during 2022 and disposed before the end of the year, according
to the consolidation guidelines of the Sustainability
Report. The figure, excluding GHG emissions from theseSBTi‘sassets,gCO2eqbased/kWh,on
down
-78%
-100%
1.5is°C217
pathway,
IPCC40%scenarios
comparedto the restated baseline.
vs 2017vs 2017and adjusted to Enel‘s baseline.
332
258
Target previously
validated by SBTi in 2020
(1.5 °C pathway)
1.5 °C
1.5 °C of 82 gCO2eq/kWh.
Short-term target set in the Business Plan
183
2023-2025.
218

135

Medium- and long-term targets validated by

74

SBTi in December 2022 according to the Net
Scope 1 and 3 GHG emissions intensity relating to Integrated Power (gCO
/kWh)
2eq
Zero
Standard and aligned with the 1.5 °C

73

332

2017

baseline(restated)(1)

(1)
(2)

258 (2)
2022

2025

218

183

-78%
vs 20171.52030°C

pathway.

Zero emissions-100%
vs 20171.52040°C

SBTi‘s 1.5 °C pathway, based on IPCC scenarios
and adjusted to Enel‘s baseline.
Short-term target set in the Business Plan
2023-2025.

Medium- and long-term targets validated by
74
The 2017 baseline has been 135
restated from 373 gCO2eq/kWh to 332 gCO2eq/kWh to exclude GHG emissions from
disposedin 2017-2022
period,in
SBTi assets
in December
2022
according to
the Netaccordance with SBTi.
Zero Standard and aligned with the 1.5 °C
The 2022 value has not been restated and 73
includes the GHG emissions from assets in operation during 2022
and disposed before the end of the year,
pathway.
according to the consolidation guidelines of the Sustainability Report. The figure, excluding GHG emissions by these assets, is 210 gCO2eq/kWh, down
36% compared to the restated baseline.
Zero emissions

2017

baseline(restated)(1)2022(2)

2025

2030

2040

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

level of alignment with temperature scenarios of the Pa•(1) target
ambition on absolute Scope 3 GHG emissions reThe 2017 baseline has been restated from 373 gCO /kWh to 332 gCO /kWh to exclude GHG emissions from assets disposed in 2017-2022 period, in

2eq
2eq
ris Agreement, from a previous 2 °C pathway to one oflatingto Gaswith
Retailaccordance
SBTi. has been significantly improved from
-55%
-100%
Short-term targets set in the Business Plan
(2) 21.2
TheMtCO
2022 value tohas11.4
not been
restatedandincludestheGHGemissionsfromassetsin °C,
operation
duringthe2022
and disposed
the end of the year,
1.5
to whichtargetis nowbeforealigned;
MtCO2eq byvs2030,
the2017 to increasevs 20172023-2025.
2eq

according to the consolidation guidelines of the Sustainability Report. The figure, excluding GHG emissions by these assets, is 210 gCO2eq/kWh, down
1.5 °C
1.5 °C
36% compared to the restated baseline.
Medium- and long-term targets validated

25.3

22.9

20.9
Absolute Scope 3 GHG
emissions relating to Gas Retail (MtCO2eq)

by SBTi in December 2022 according to the
Net Zero Standard and aligned with the 1.5 °C
pathway.

11.4(1)

Zero emissions-100%
vs 2017

Short-term targets set in the Business Plan
2023-2025.

Target25.3previously validated by SBTi in 2019 (WB2C scenario) of 21.2 MtCO2eq.

Medium- and long-term targets validatedby SBTi in December 2022 according to the
Net Zero Standard and aligned with the 1.5 °C
pathway.

2017

(1)

2022

22.9

2025

-55%
vs 20172030
1.5 °C2040
1.5 °C

20.9

11.4(1)
Zero emissions
2017

(1)

2022

2025

2030

2040

Target previously validated by SBTi in 2019 (WB2C scenario) of 21.2 MtCO2eq.

Zero emissions ambition89• new target has been defined for additional absolute

Scope 1, 2 and 3 emissions. The target covers i) Scope
1 GHG emissions from vehicles fleet and buildings, andlosses of SF6 in distribution assets; ii) all Scope 2 emissions; iii) Scope 3 emissions from the supply chain andall other activities related to fuel purchase and transportation. This objective provides for different levels of coverage of GHG emissions deriving from the supply chain
for the 2030 and 2040 targets, allowed by SBTi method-

ology, which translate into two decarbonization curves:– 2017-2030 roadmap covers specific supply chain cat-egories that accounted for 40% of supplier emissions
in 2017;– 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

1.5 °C2017-2040 roadmap-90%
vs 2017

24.5
20.7

18.7

10.4

1.5 °CNet Zero
Emissions

<2.5
2017

baseline(restated)(1)2022(2)

2030

2017

baseline(restated)(1)2022(2)2040

Medium- and long-term targets validated by SBTi in December 2022
according to the Net Zero Standard and aligned with the 1.5 °C pathway.

• 2017-2030 roadmap covers specific supply chain categories that
accounted for 40% of supplier's emissions in 2017.

2017 baseline has been restated from 25.0 MtCO2eq to 23.1 MtCO2eq
for 2017-2030 roadmap and from 26.5 MtCO2eq to 24.5 MtCO2eq for
2017-2040 roadmap to exclude GHG emissions from assets disposedin 2017-2022 period in accordance with SBTi.
2022 figure has not been restated and includes the GHG emissions ofassets in operation during 2022 and disposed before the end of theyear, following the consolidation guidelines of the Sustainability Report.
The figure, excluding GHG emissions by these assets, is 17.5 MtCO2eq
for the 2017-2030 roadmap, down 24% compared to the restatedbaseline and 19.5 MtCO2eq for the 2017-2040 roadmap, down 20%
from the restated baseline.

• 2017-2040 roadmap covers all supply chain categories included in
the 2017-2030 roadmap and additional ones, which accounted for
54% of supplier's emissions in 2017.

(1)

(2)

The first three targets envisage a 100% reduction in emissions generated by 2040, as the Group will produce and sell
100% of energy from renewable sources by then and will
no longer maintain a presence in the retail gas market. The
fourth objective currently envisages a 90% reduction by 2040
from 2017, with a residual volume of less than 2.5 MtCO2eq,
which will be neutralized through carbon removal in the eventthat the current external factors (linked to the supply chain,
the market and the regulatory frameworks) that prevent Enelfrom mitigating them will also be present after 2040.
The four targets cover the 93.3% of the total direct andindirect GHG emissions reported by Enel in 2022. Specifically:• 98.6% of Scope 1 GHG emissions. Minor sources of GHG

90

Sustainability Report 2022

emissions were excluded as they were not directly related to the combustion process for electricity generationor the power distribution activity (such as GHG emissions from ancillary services in renewable power plants
and distribution sites, CH4 leakage in gas-fired plants,
and SF6 leakage in thermal and renewable plants) or ofbiogenic origin (such as CH4 emissions from hydroelectric reservoirs);• 100% of Scope 2 emissions, including all indirect emissions from electricity consumption and technical grid
losses;• 87% of Scope 3 emissions for the target set for 2030,
compared to 90% for the target set for 2040. Specificcategories of the supply chain have been excluded fromthe scope of the targets.

1

Letter to stakeholders

GHG targets

2

We empower sustainable progressCore businessactivity

GHG sources
covered (GHG
Protocol)(1)Timing3

Materiality analysis

GHG targets

Climatic
scenario4

Our performance5

Appendix

Main drivers and actions• Gradual phase-out of coal-fired capacity

130 gCO2eq/
kWhIntensity of
GHG Scope
1 emissions
relating
to power
generation

Electricity
generation

1.5 °C(3)• Continue the process of decarbonization

98.2%

of Scope 1 GHG
emissions(2)over the period 2023-2025 (percentage
weight of coal-fired capacity inconsolidated capacity from about 7% in
2022 to less than 0.5% in 2025).
• Invest 15 billion euros to accelerate
the development of renewable energy
by installing 17 GW of new renewablecapacity (including about 13 GW at
consolidated level) and 4 GW of BESS in
the period 2023-2025, reaching 75 GW
of renewable capacity (including 4 GW of
BESS) by 2025.

72 gCO2eq/
kWh
(-80%
compared tobaseline year
2017)

0 gCO2eq/kWh(-100%
compared tobaseline year2017)

1.5 °C(SBTi
certified)

1.5 °C(SBTi
certified)of electricity generation, thanks to a
Group-wide investment plan that will
be confirmed at the annual levels of the2023-2025 plan, reaching a managed
capacity of more than 130 GW by 2030,
thus bringing the Group’s generation
facilities to consist of about 85%
renewable plants.
• Exit the coal-fired generation businesson a global scale by 2027.

• Exit the thermal electricity generation

business, achieving a 100% renewableenergy mix.
• No use of carbon removal technologies

Zero emissions• Increase the share of renewable energy

135 gCO2eq/
kWhIntensity of
GHG Scope
1 and 3emissionsrelating toIntegrated
Power

1.5 °C(3)• 98.2%of Scope 1
GHG emissions

Sale ofelectricity• 73.4%of Scope 3
GHG emissions- category
3 (fuel andenergy related
activities)

sold to customers by increasing theGroup’s renewable generation.
• Increase from about 70% in 2022 toabout 90% in 2025 the share of fixedprice power sales covered by carbonfree sources in core countries, while
simultaneously increasing the volumes ofelectricity sold at fixed prices from about
185 TWh in 2022 to about 200 TWh in
2025.

• Increase the share of renewable energy
73 gCO2eq/
kWh
(-78%
compared tobaseline year
2017)

0 gCO2eq/kWh(-100%
compared tobaseline year2017)

1.5 °C(SBTi
certified)

1.5 °C(SBTi
certified)sold to customers by increasing theGroup’s renewable energy generation,
reaching a managed capacity of morethan 130 GW by 2030, thus bringing theGroup’s generation facilities to consist of
about 85% renewable plants.
• Continue the strategy of balancing
supply and demand and increasing
the share of electricity sold at fixedprice covered by carbon-free power
generation.

• Achieve 100% of energy sales fromrenewable sources by 2040.

• No use of carbon removal technologies

Zero emissions

Timing:2

Short term (2025)

2022 Sustainability Report

Medium-term (2030)

Long-term (2040)

Zero emissions ambition91

1

Letter to Stakeholders

GHG targets

Core businessactivity2

Our sustainable progress

GHG sources
covered (GHG
Protocol)(1)Timing3

Materiality analysis

GHG targets

Climatic
scenario4

Our performance5

Appendix

Main drivers and actions• Promote the switch of customers from

20.9 MtCO2eq

Absolute
Scope
3 GHG
emissionsrelating togas salesin the end
market.

n.a.(4)100%of Scope 3 GHG
Gas sales to the emissions end customer
category 11(use of soldproducts)• Promote the switch of customers from

11.4 MtCO2eq(-55%
compared tobaseline year
2017)

0 MtCO2eq(-100%
compared tobaseline year2017)

1.5 °C(SBTi
certified)

1.5 °C(SBTi
certified)

Zero emissions

Timing:92

Short term (2025)

Sustainability Report 2022

Medium-term (2030)

gas to electricity (especially residential
customers) by pushing more efficientelectrical technologies (e.g. heat pumps
for home heating or induction hobs inkitchens), increasing the electrification
rate of our customers in Italy and Spainfrom 17% in 2022 to over 20% in 2025.
• Promote electrification-enabling
services to end customers: increasing
behind-the-meter storage capacityfrom about 75 MW in 2022 to about 352
MW in 2025, increasing the capacityof photovoltaic panels installed by end
customers from about 100 MW in 2022
to about 300 MW in 2025, and increasing
demand response capacity from about
8.5 GW in 2022 to about 12.4 GW in
2025.
• Reduce the volumes of gas sold to end
customers from about 10.2 bcm in 2022
to about 4.3 bcm in 2025.
• Optimize the gas portfolio of customers(especially industrial customers) byreducing the number of customers in theretail gas business from about 6.5 million
in 2022 to about 4.4 million in 2025.

gas to electricity (especially residential
customers) through the promotion of
more efficient electrical technologies(e.g. heat pumps for home heating or
induction hobs in kitchens), increasing
the electrification rate of our customers
in Italy and Spain from 17% in 2022 toover 30% in 2030.
• Continue the strategic actions envisaged
for the short term, by continuing topromote services to end customers thatenable the electrification of consumption
and achieving a demand response
capacity by 2030 of more than 20 GW.
• Optimize the gas portfolio of customers(especially industrial customers) bycontinuing to reduce the volume of gas
sold to about 3 bcm in 2030.

• Achieve 100% sales of energy covered byrenewable sources by 2040.

• Exit from the business of gas sales toretail by 2040.

• No use of carbon removal technologies.

Long-term (2040)

3

1

Letter to stakeholders

GHG targets

2

We empower sustainable progressCore businessactivity

GHG sources
covered (GHG
Protocol)(1)Timing3

Materiality analysis

GHG targets

Climatic
scenario4

Our performance5

Appendix

Main drivers and actions• Invest a total of 15 billion euros in• 0.4%of Scope 1
GHG emissions• Electricity

Additional
absolute
Scope 1-2-3
emissionsdistribution(Scopes 1
and 2)• Fleetmanagementof vehicles,
buildings andother assets(Scopes 1
and 2)• Supply chain
management(Scope 3)• Purchaseof fuels(Scope 3)• 100%of Scope 2
GHG emissions

10.4 MtCO2eq(-55%
compared tothe baseline
year 2017)

1.5 °C(SBTi
certified)• 28.6%of Scope 3
GHG emissions- category 1(purchase ofgoods andservices) for
the 2030 target
and 43.0%
for the 2040
target(5)• Promote the digitalization of the• 26.6%of Scope 3
GHG emissions- category
3 (fuel andenergy related
activities)

distribution networks over the period2023-2025, of which 11% to increase
digitalization and 47% to improve theresilience and quality of networks, thus
helping to reduce network losses andrelated emissions. Replace existing
components of the distribution network
infrastructure with SF6-free solutions.
• Electrify the fleet and buildings by 2030.
• Implement a circular procurement
approach and increase the number ofcontracts that include the measurementof the carbon footprint of products
and services purchased by Enel by
incentivizing their reduction in a
decarbonization pathway shared with
our suppliers. Strengthen the dialogue
with manufacturers or raw materials andother utilities to define effective andlong-term common decarbonization
strategies.
• Phase out coal-fired generation by 2027,
mitigating all GHG emissions related tocoal supply.

<2.5 MtCO2eq(-90%
compared tothe baseline
year 2017)

1.5 °C(SBTi
certified)

Net zeroemissionsdistribution network and replace existing
network infrastructure components with
SF6-free solutions.
• Implement a circular procurement
approach and increase the number ofcontracts that include the measurementof the carbon footprint of products
and services purchased by Enel by
incentivizing their reduction in a
decarbonization pathway shared with
our suppliers. Strengthen the dialogue
with manufacturers or raw materials andother utilities to define effective andlong-term common decarbonization
strategies.
• Zero emissions from gas extraction
activities by exiting the business of bothelectricity generation from gas and gas
sales to end customers.

Total coverage of Scope 1-2-3
emissions in 2022
• 98.6% of Scope 1 GHG emissions (2025, 2030, 2040 target)• 100% of Scope 2 GHG emissions (2030, 2040 target)• 87% (2030 target) and 90% (2040 target) of Scope 3 GHG emissions(5)(1) Percentages based on total GHG emissions in 2022.
(2) Marginal Scope 1 GHG emissions not directly related to the combustion process of fossil fuels for power generation in thermal power plants were excluded,
representing 1.4% of total Scope 1 emissions in 2022. In any case, the GHG emissions covered by all of the above targets together represent 98.7% of total
Scope 1 and 2 emissions in 2022 and are therefore above the 95% threshold required by SBTi.
(3) The target meets the 1.5 °C path set by SBTi for the electricity service sector (sectoral decarbonization approach, SDA), although it could not be officiallyvalidated because SBTi does not certify targets with a timeframe of less than five years from the date of submission.
(4) The target could not be officially validated because SBTi does not certify targets with a timeframe of less than five years from the date of submission. Furthermore, SBTi has not defined a sectoral decarbonization approach for these types of emissions, so the level of ambition cannot be verified.
(5) Two different percentage limits to the supply chain GHG Scope 3 target have been defined, as allowed by the SBTi methodology, which requires at least 67%
of Scope 3 emissions to be covered for the 2030 target, and at least 90% for the 2040 target.

Timing:4

Short term (2025)

2022 Sustainability Report

Medium-term (2030)

Long-term (2040)

Zero emissions ambition

93

Enel’simpact
impactclimatechangeEnel’son onclimatechangein 20223-3

201-2

CO2 free generation(1)Digitalization of the gridElectrification of the energy demandand promotion of energy efficiency

Enel’s
impactonemissions
climatechange•inBy providing
2022data infrom 45.8 million
81.6 million• Avoided CO

Positive impacts
Positive impacts
Negative impacts
Negative impacts•

Contribution to CO2 emission
22.6
2electricity generation
quasi real time, smart
reduction in other sectors
end users
thousandContribution to CO2
meters permit an efficientthrough the electrification
with active
publicly
emission reduction in othermanagement of the energyof consumption, including
smart
owned
sectors(²) through a zerosupply and demand,by promoting
Electrifi
cation of thetransportenergy demandmeterscharging
CO2 free generation(1)Digitalizationof the gridandpromotion
efficiency
emission energy mix
promoting informed andelectric
mobility
pointsfor of energy
sustainable consumption
electric
mobility
Avoided CO2 emissions from 45.8 million
By providing data inContribution to CO2 emission
22.6
81.6 million
electricity generation
quasi real time, smart
reduction in other sectors
end users
thousandteq ofContribution to CO2
meters permit an efficientthrough the electrification
with active
publicly
avoided CO2
emission in
reduction
management
the energyof consumption,
smart
owned
Increasestorage in otherAreliable and ofresilient
Energyefficiency including
solutions
3
million
99 MW
2.6
sectors(²)(3)through a zerosupply
andreduce
demand,transport
by promoting
meterscharging
capacity
grid
helps
the CO2
forreducing
consumption
smart
publicnumber ofemission energy mix
promotingassociatedinformed andelectric mobility
points foremissionswith(residential,
city and industry)
lighting
service insustainable
electric
grid
losses consumption
pointsterruptions
mobility
per client(SAIFI)(4)
teq ofavoided CO2

•

•
•
•

99 MW

• Increase in storage

Value chain

Generation

52.1 million
teq CO2
Value chain

52.1
million10.3 million
tteq COCO2eq2capacity(3)• Direct greenhouse gas

emissions for electricity
generation (Scope 1)(5)

2.6
number ofservice interruptions
per client(SAIFI)(4)
3.3 million
teq CO2

Generation

Direct greenhouse• Indirect
greenhousegas
emissions for electricity

gas emissions from(5)
generation(Scopefuel extraction
and 1)
transportation (Scope 3)•

Indirect greenhouse
10.3Thermal
million production
gas emissions fromteq CO2
fuel extraction andtransportation (Scope 3)

Thermal production

3.3 million
teq CO2

•

•

•

•

• A reliable and resilient

grid helps reduce the CO2
emissions associated with
Networks
grid losses• Indirect greenhouse gas

emissions associated withtechnical losses from thegrid (Scope 2)(6)
Networks• Indirect greenhouse gas

emissions associated withtechnical losses from thegrid (Scope 2)(6)•Energy efficiency solutions
3 million
for reducing consumption
smart public(residential, city and industry)
lighting
Retailpoints28.4 million
teq CO2

28.4
22.9 million
milliontteq CO
CO22
eq• Indirect greenhouse gas

emissions associated withthe purchase of electricity
sold to the end customer(Scope 3)
RetailIndirect greenhousegreenhouse gas
gas• Indirectemissions associated withemissions associated with
theof electricity
the purchaseuse of natural
gas sold insoldretailto theend customer
themarket(Scope 3)(Scope 3)•

Technical losses from the grid

Indirectgreenhouse gas
22.9ofmillion
Salesretail electricity
and gasTechnical losses from the grid

Sales of retail electricity and gas

teq CO2emissions associated withthe use of natural gas sold in
the retail market (Scope 3)

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

Includes the generation of renewable and nuclear energy.
The GHG Protocol requires the consumption of electricity to be considered when calculating the Company’s carbon footprint as indirect emissions (Scope 2).
Includes the contribution of the Global Power Generation Business Line.
SAIFI, System Average Interruption Frequency Index.
Other Scope 1 emissions were indicated in the paragraph “Our carbon footprint”.
Other Scope 2 emissions were indicated in the paragraph “Our carbon footprint”.

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

Includes the generation of renewable and nuclear energy.
The GHG Protocol requires the consumption of electricity to be considered when calculating the Company’s carbon footprint as indirect emissions (Scope 2).
Includes the contribution of the Global Power Generation Business Line.
SAIFI, System Average Interruption Frequency Index.
Other Scope 1 emissions were indicated in the paragraph “Our carbon footprint”.
Other Scope 2 emissions were indicated in the paragraph “Our carbon footprint”.

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1

Letter to stakeholders

2

We empower sustainable progress

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 completely transformed this scenario by making electricity one of the main solutions for reducing the carbon
footprint worldwide. Enel is aware of these impacts andimplements specific actions to minimize them, promoting
the decarbonization of the energy system and the electrification of the energy demand. As a result, this reduces thegreenhouse gas emissions along the entire value chain.
Enel’s power generation from fossil fuels (mainly gas andcoal) traditionally represents the main source of greenhouse gas emissions. In particular, in 2022 the direct emissions (Scope 1) relating to power generation from fossil
fuels were about 52.1 mil teq CO2, whereas indirect emissions (Scope 3) relating to the extraction and transport offuels were 10.3 mil teq of CO2. Enel is reducing this impact
by accelerating the phase out of coal-fired plants, with areduction of capacity in 2022 of around 2.5 GW compared
to 2021. In parallel, the Group is increasing the development of renewable capacity that, together with the contribution of nuclear generation, has avoided 81.6 mil teq of
CO2 emissions. Furthermore, Enel is actively committed tothe development of electricity storage systems that support the integration of renewable capacity, with a total installed capacity of 316 MW in 2022. Decarbonization of theenergy mix also has a positive impact on the reduction ofcustomers’ indirect greenhouse gas emissions (Scope 2)

3

Materiality analysis

4

Our performance5

Appendix

associated with the acquisition of electricity to cover theirenergy demand.
Electricity grids‘ management involves indirect greenhouse gas emissions (Scope 2) associated with technicalenergy losses on the grid of 3.3 mil teq of CO2 in 2022 (according to the “location based” calculation methodology).
Enel is actively investing in the digitalization and automation of the electricity grid to reduce these losses and increase reliability, while promoting the diffusion of renewables in the energy system.
Concerning the end customer, the use of the products
sold by Enel’s customers generates GHG emissions thatare accounted for as indirect (Scope 3). In particular, theemissions connected to the purchase of electricity to be
sold to customers equaled approximately 28.4 mil teq ofCO2, whereas those related to the use of gas sold equaled
22.9 mil teq of CO2. Enel regularly monitors these emissions
and adopts measures aimed at minimizing them. Furthermore, it offers its customers technical solutions to reducecarbon emissions related to their energy consumption in awide range of sectors, including transport, property management as well as industrial processes and services. For
example, with Enel X the Group is promoting the deployment of owned public charging infrastructure for electrical vehicles (22,600 charging points installed in 2022), thedevelopment of energy efficiency solutions, distributed
generation, consultancy services, smart public lighting andcircular cities.
Emissions related to the activities of the Group’s suppliers amounted to 14.2 mil teq of CO2 in 2022. To reduce this
impact, Enel adopts a circular procurement approach andincludes assessments of the carbon footprint of the products and services involved in the purchasing processes
and encourages their reduction.

Zero emissions ambition95

Advocacy aboutclimate change policies
Within the framework of its commitment to climatechange, Enel is firmly committed to promoting and defining:• 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;• constant dialog on climate issues within multi-stakeholder initiatives, actively contributing to groups andcoalitions such as the Just Transition Think Lab andCaring for Climate under the UN Global Compact, theSOS 1.5 and Policy Advocacy and Member Mobilization(PAMM) projects of the WBCSD (World Business Council
for Sustainable Development), and the World Bank’s Carbon Pricing Leadership Coalition (CPLC);• private sector leadership on decarbonization throughits continued participation in initiatives such as the CEO
Alliance, WEF CEO Climate Leaders Alliance, IETA (International Emissions Trading Association), FMC (First Movers Coalition), and regional and national trade associations.
Enel is committed to ensuring that its direct advocacy activities are aligned with the objectives of the Paris Agreement, involving institutional stakeholders, trade associations, non-governmental organizations and academia, inorder to promote the Group’s vision on climate and policies to eliminate greenhouse gas emissions. Stakeholder
engagement contributes to the evolution of the regulatory
framework towards ambitious climate goals and promotes
an economy in which carbon pricing plays a fundamentalrole in orientating long-term investments.
In particular, Enel interacts directly with policy makers,
contributes to the positioning of trade associations, andengages with a broader set of stakeholders to build consensus and support for specific policy proposals.
Enel supports the integration of carbon pricing into thedecision-making process in all countries where it operates. In doing so, it underlines the importance of well-functioning mechanisms for carbon taxation and emissions
trading. These must be able to provide short- and medium-term predictability to support market efficiency, as well
as strong long-term price signals to support investment
and innovation.
The worldwide coordination of Enel’s global public policy
positioning on climate is ensured by the Energy and Cli-

mate Policies unit. This unit is responsible for developing
global scenarios and position papers on climate policies
with the support of the Country and Global Business Lines.
Its objective is to guide Enel’s national and local advocacy
activities, thanks to a continuous dialog with institutions
and the widest possible range of stakeholders active in the
climate debate. In this sense, Enel is also committed to ensure continuous and full alignment with the objectives of
the Paris Agreement within the associations of which it isa member.
During 2022, the Group represented its interests andpromoted its position vis-à-vis the European institutions(Commission, Parliament, Council) with the aim of orientating legislative proposals and decisions that could haveaffected 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 and responsible manner. In this sense, it is listed on the European
Transparency Register,(2) the specific activities of which
are linked to the main EU legislative and/or policy proposals (including the European Green Deal, Fit for 55, the
REPowerEU plan, ETS reform, Air Quality Directives, Sustainable Finance, State Aid and Competition, Hydrogen).
The dedicated website contains a public list of meetings
Enel has held with the EU Commissioners, members of
their Cabinets and EC Directors-General between December 2014 and January 2023. Specifically, for 2022, issues
discussed included: the European Green Deal, Energy Taxation Directive (ETD), Carbon Border Adjustment Mechanism (CBAM), the Renewable Energy Directive, and the ETS
Directive. In addition, Enel’s positions and responses to EU
consultations (such as the Critical Raw Materials Act) aremade public, together with a list of the main professional
associations and think-tanks in which Enel is active.
In all countries, Enel’s pursues its advocacy efforts throughspecific activities and broader stakeholder engagement
on decarbonization and energy transition issues. The approach is similar to that adopted at global level. The objectives of the Enel Group’s advocacy policy include promoting
greater climate ambition, carbon pricing, accelerating the
deployment of renewable technologies, developing andupgrading infrastructure through smart grid technologies
to support the energy transition, and electrification as ameans for decarbonizing energy end-uses. In this context,
through the “Energy Transition Roadmap” engagement(2) 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.

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1

Letter to stakeholders

2

We empower sustainable progress

platforms, Enel engages with a wide range of stakeholders
on the definition and implementation of the actions needed
to pursue the Paris Agreement goals. These platforms takedecarbonization by 2050 as a starting point, then proceed
to identify the technology mix needed to reach this and the
medium-term goal for 2030, and to develop specific policy
recommendations aimed at achieving this transformation.

The Group’s positioning on themain climate policies
During 2022, several regulatory and legislative events took
place, both specific to the climate and concerning energy
and environmental issues related to it.
The number of dossiers on which Enel focuses its advocacy increases annually and, in particular, our main positions
are as follows:3

Materiality analysis

4

Our performance5

Appendix

based on Cap and Trade systems should be preferredin industrialized economies and industrial sectors whereoperators can effectively manage and internalize theprice signals recorded on the market in their decision-making processes. Conversely, carbon-pricing
mechanisms should tend to take the form of carbon
taxes in countries with weaker institutions and in sectors characterized by distributed emission sources, andwhere non-economic barriers are significant. The EnelGroup strongly supports carbon pricing as a means todecarbonize economic systems efficiently and effectively around the world. Enel’s positions on the adoption ofcarbon pricing are conveyed both directly and throughparticipation in the activities of organizations such as
IETA, CPLC, Eurelectric and WBCSD. In 2022, specific activities were dedicated and aimed at analyzing and promoting carbon pricing, at global, regional (EU and Latin
America) and national (EU member states, Brazil, Argentina, Chile, Guatemala, Panama, Costa Rica, Colombia
and Peru) levels.

Globally:• as part of the United Nations Framework Convention
on Climate Change (UNFCCC), Enel has been active inpromoting greater ambition in the implementation of
the Transparency Governance Framework, in the full
mobilization of carbon finance envisaged by the Paris
Agreement, together with rapid development of international cooperation envisaged by Article 6 of the same
Agreement. In this sense, Enel also played an activerole during the various preparatory events for COP 27
in Sharm el-Sheikh. In particular, Enel has asked: to efficiently accelerate the energy transition by guiding theworld’s economies on the path to Net-Zero, as recalledby the latest IPCC Report; to prepare the stocktaking
planned for COP 28; to catch up in mobilizing finance tosupport mitigation and adaptation in developing countries; finalizing the implementing provisions of Article 6
on cooperation in terms of climate change;• Enel promotes greater climate ambition in line with theParis Agreement, in a just transition framework. Enel’s
advocacy in this area is implemented through ad hoc
engagement on specific legislative proposals (e.g. theEuropean Climate Law), but also through broader stakeholder engagement at national level through Enel’s Energy Transition Roadmap platform (see above). Throughsuch platforms, Enel promotes NDCs (Nationally Determined Contributions) that fully reflect the highest possible climate ambition and are fully in line with the requirements of the Paris Agreement;• Enel has strongly promoted carbon pricing in the formof both carbon tax and emissions trading. In particular,
Enel believes that the adoption of these mechanisms

At European level:• The European Green Deal, together with recent accel-

eration as a result of the REPowerEU plan to reduce Europe’s energy dependence, represents for Enel a unique
opportunity to accelerate the EU’s path to a fully decarbonized and sustainable economy, especially whenaligned with the mobilization of significant resources
to ensure a rapid recovery from the ongoing crises. For
Enel, the EU’s climate and environmental goals require a
new industrial strategy to reach climate neutrality, andan action plan for the circular economy, pursuing thedecarbonization of each sector. The energy sector must
aim to be fully decarbonized ahead of other sectors, assuch ensuring decarbonization through direct and indirect electrification. For example, the study “Powering
our buildings: how policies can support energy efficiency through building electrification”, developed together
with FIRE (Italian Federation for the Rational Use of Energy) and IEECP (Institute for European Energy and Climate
Policy), addresses energy improvement and decarbonization of the building sector;• Enel has supported EU proposals for reform of the Emis-sions Trading System (ETS), which must be strengthened to pursue the EU’s higher climate ambition andsupported by a Carbon Border Adjustment Mechanism.
The revision of the ETS Directive is in line with Enel’s positioning. The overall ambition of the scheme has been
reinforced with a target of reducing emissions by 62%
by 2030 compared to 2005 levels. The EU ETS has been
extended to new activities in hydrogen production andmaritime transport. A separate ETS for transport and forthe heating of buildings has been launched with differ-

Zero emissions ambition

97

ent clauses to ensure their sustainability with a view toa just transition. The functioning of the market has
been improved through a revision of the Market Stability Reserve (MSR), aimed at increasing price stability
and balancing any surplus allowances on the ETS market. Finally, the revision of the EU ETS has taken place
alongside the adoption of the Carbon Border Adjustment Mechanism to provide greater climate ambition
while reducing the risks of carbon leakage;• Enel has supported a revision of the Effort Sharing

regulation that fully exploits the decarbonization potential of energy end-uses in the EU’s increased climate ambition. The review aimed to update the Effort
Sharing Regulation (ESR) targets of individual member
States in an upwards direction, in line with the higher ambition of 2030. The ambition also needed to
be aligned with 2050 climate neutrality, to avoid thetechnological lock-in of emitting technologies and infrastructure. However, the impact on prices and energy bills must be carefully managed when adopting therecently revised regulation;• Enel has welcomed the publication of the hydrogenand gas market decarbonization package by the European Commission. The package also includes the
proposed regulation on reducing methane emissions
throughout the value chain in the energy sector andintroduces new requirements for measuring, reporting and verifying emissions, as well as emission
abatement measures. In addition, the regulation also
proposes rules to increase transparency on methane
emissions associated with fossil fuel imports;• Enel supports the European Commission’s proposal on

an upward revision of the EU’s 2030 energy efficiency target to at least 36% for final energy consumption and at least 39% for primary energy consumption to achieve the ambition of reducing greenhousegas emissions by 2030. Significant energy efficiency
improvements are needed to achieve the Net-Zeroemissions target by 2050. As such, the proposed revision of the Directive, as part of the “Delivering on theEuropean Green Deal” package, raises the level of ambition of the EU’s energy efficiency target and makes
it binding;• Enel welcomes the Commission’s initiative to review
the Renewable Energy Directive and increase its ambitiousness. It believes that the main contributions toefficient decarbonization of the energy sector, as wellas buildings, heating and cooling, transportation andindustry, will come from further end-use electrification (direct and indirect electrification for sectors thatare difficult to abate emissions by means of green hy-

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Sustainability Report 2022

drogen). In this regard, low carbon fuels should be excluded from the scope of this Directive. Enel believes
that the EU regulatory framework should provide longterm predictability for investors, as well as simplified
and standardized authorization procedures. Finally,
Enel supports a technology-neutral approach that at
the same time creates the necessary conditions forthe penetration of fully sustainable technologies;• as part of the European Commission’s hydrogen strat-

egy, the Enel Group actively promotes green hydrogen(generated by electrolysis powered by 100% renewable energy). Enel believes that this is the only truly
sustainable generation pathway for hydrogen, powered by renewable sources with zero greenhouse gas
emissions. Hydrogen is best used as a complement toelectrification, not as a competitor. It has an efficientrole in decarbonizing those parts of the economy thatcannot be electrified easily or economically, for example, hard-to-abate sectors such as heavy industry,
aviation and shipping. In addition, Enel participated in
2022, together with many other multinationals, in two
different working groups within the “Energy Pathway”
project promoted by WBCSD, with the aim of participating in the discussion on how to stimulate thedevelopment of projects and, at the same time, thehydrogen market;• as part of its smart and sustainable mobility strategy,

the Enel Group is actively promoting e-mobility as a
key factor in reducing road transport emissions andcontributing to the achievement of EU energy efficiency targets. Since 2011, the EU has been involvedin the process of updating its transport policy framework to reduce emissions in this sector, particularlyroad transport. Mobility is a critical aspect of social
inclusion and a determining factor in human well-being, especially for disadvantaged groups. Recognized
as an essential service in the European pillar of social
rights, transport meets a fundamental need in enabling citizens to integrate into society and the labormarket. By far the most serious challenge facing thetransport sector is to reduce its emissions significantly and become more sustainable. The European Green
Deal calls for a 90% reduction in GHG emissions fromtransport so that the EU can become a climate neutral
economy by 2050, including working towards a zeropollution ambition. In addition, in 2021 the European
Commission unveiled the “EU Urban Mobility Framework”, complementing the proposed revised guidelines for the Trans-European Network. The new EU
Urban Mobility Framework outlines a common list ofmeasures and initiatives for with which EU cities canaddress the challenge of making their mobility moresustainable. Finally, in 2022 Enel participated in the1Letter to stakeholders

2

We empower sustainable progress

Mobility Decarbonization working group promoted by
WBCSD, with the aim of encouraging the decarbonization of road transport, facilitating the developmentof new technologies for zero-emission vehicles andthe creation of new charging infrastructure;• Enel fully supports the European building renovation

strategy and actively participates in discussions on the
proposed review of the Energy Performance of Buildings Directive. The building sector is one of the most
lagging industries as regards decarbonization due tocriticalities in the value chain, in building efficiency, andin choice of energy source. Enel believes it can contribute substantially to the decarbonization of the building sector by installing efficient electrical technologies
such as heat pumps, charging infrastructure for mobility and solar panels on roofs, improving building efficiency through electrification and digitalization, making buildings dynamic elements of the energy systemthrough storage, remodeling of demand, and electricvehicle charging;• Enel has involved various stakeholders in the Europe-an Commission’s New Circular Economy Action Plan,
stressing the importance of ensuring the circularity ofthe main supply chains, particularly in relation to electric vehicles, batteries and renewable energy technologies. Furthermore, Enel’s advocacy has highlighted theneed to develop appropriate circular economy metrics
and to focus on the high potential of urban environments through the implementation of a clear vision of
circular smart cities;• within the framework of the Zero Pollution dossier andother environmental dossiers, the Enel Group is actively
promoting the maximization of synergies between decarbonization and other environmental policies. In thiscontext, synergies of climate and air quality policies areperhaps the most critical, and electricity technologies
can play a key role in combating climate change, improving local air quality and increasing the circularity of
the EU’s economic system. The revision of the Air Quality Directive, proposed by the Commission in 2022, has
proved crucial to strengthen the role that clean technologies can play in improving air quality for European
citizens. Soil management is vital for a circular economy that aims to develop sustainable models capable ofencouraging the coexistence of different activities andcreating synergies and mutual benefits, such as agrivoltaics. The new soil strategy published in November
2022 is a step in the right direction. However, its scopeshould also be extended to the redevelopment ofbrownfield sites and the reuse of brownfields to avoid
further land acquisition and soil pollution.

3

Materiality analysis

4

Our performance5

Appendix

In the USA and Canada, the main dossiers on which theEnel Group has taken action with advocacy actions include:• the US Inflation Reduction Act (IRA), aimed at incentiv-

izing the deployment and generation of clean energy
technologies. The law is expected to provide new incentives for clean energy and facilitate a 40% reduction in
the US economy’s greenhouse gas emissions by 2030.
Enel has supported the IRA, presenting its assessments
to Congress and working with trade associations to inform and model the design elements of policies within
the law;• the US Uyghur Forced Labor Prevention Act (UFLPA), theimpact of which has been particularly significant on imports from the Xinjiang Uyghur Autonomous Region in
China. In June 2022, the provisions for major solar energy importers came into force. Enel has supported thesector’s action to develop supply chain traceability programs and, with trade associations, has opposed any
presence of forced labor in supply chains, in line with the
public commitment made in this regard through the human rights policy;• in California, the mobilization of financing for distributed

generation and resilience: funds have been allocated tosupport resources (generation and storage) distributed
at low/zero emissions, but also for demand management
on electricity grids. In addition, a commitment has been
made to accelerate the electrification of transport. Enelhas supported the allocation of these funds and met andprovided its assessments to the legislature, working withtrade associations;• the Massachusetts Climate Bill enacted in August 2022,

which aims to promote a 50% reduction in emissions
compared to 1990 by 2030. The law includes a targetof developing energy storage of 1 GWh by 2025 andrequires all new sales of passenger vehicles to be zero-emission by 2035. There are also discounts for thesale of electric vehicles and incremental incentives for
low-income buyers. Enel has supported the legislationand has met and provided targeted evaluations to thelegislature, working with trade associations;• the increase in the carbon price in Alberta, with a carbon

price trajectory to 2026 aligned with the forecasts of theCanadian Federal Government. Starting January 1, 2023,
the federal carbon price will increase from CAD 50 to65 per ton of GHG emissions, with subsequent annual
increases bringing the tax to CAD 170 per ton by 2030.
Enel has supported the pricing trajectory and has met
directly with government officials and representatives,
working with trade associations.

Zero emissions ambition99

In Latin America, the main dossiers on which the EnelGroup has taken action with advocacy actions include:• in Peru, the Supreme Decree 003-2022-MINAM, which

declares the climate emergency of national interest andprovides for the actions to be taken by the various ministries, with the aim of reducing emissions to achieve
the NDC objectives under the Paris Agreement. In thissense, the country has committed to accelerate the process of reducing emissions compared to the 2030 trend
scenario to 30%, for the unconditional target of its NDC,
to 40% in the case of a conditional target. It has also
committed to achieving carbon neutrality by 2050. Enelhas supported the strengthening of the Peruvian NDC(Nationally Determined Contribution), which will increase
the development possibilities of renewable companies,
and worked in 2022 on the Energy Transition Roadmap
project in Peru together with the consulting firm Deloitte,
as well as with public and private stakeholders;• in Colombia, the Climate Action Act, which aims to regulate the objectives of the NDC and some other aspects,
such as greenhouse gas inventories for the country’s
industrial sector. Enel has also promoted the adoptionof the law through a special project, Energy Transition
Roadmap, implemented with the support of the consulting firm CREE and in collaboration with public and private stakeholders;• also in Colombia, Resolution 172, approved in 2022, establishing the Presidential Cabinet Intersectoral Commission on Climate Action. Enel has promoted the establishment of the Commission that will be tasked withverifying the country’s progress and requirements regarding the implementation of measures aimed at respecting the international obligations acquired by theState in terms of climate action;• in Costa Rica in September 2022, the Ministry of Environ-ment and Energy published the Regulation of Chapter III
of Law No. 9518 on Incentives and Promotion of ElectricTransport, which regulates the application of temporary
tax incentives for electric vehicles, as well as a temporary
exemption from property tax for electric vehicles. Enelsupported the publication of the law and promoted it,
including through the Energy Transition Roadmap project, carried out with the support of the consulting firm
Deloitte and in collaboration with public and/or private
stakeholders;• in Panama, the approval of Decree-Law No. 10, which

adopts the National Climate Action Plan (PNAC). The Plan
is seen as a crucial tool in promoting short- and longterm national and sectoral ambitions of climate policies,

100

Sustainability Report 2022

in order to facilitate and ensure the implementation of
the NDC. Enel supported the promulgation of the Decree
and promoted a collaboration network to support thedissemination and awareness of the results, providing
the recommendations that emerged from the Energy
Transition Roadmap project carried out in the country;• in Guatemala, the development of an NDC, which envis-

ages reducing greenhouse gas emissions by 11.2% by
2030 compared to the baseline scenario, as a target notconditional on international support. In 2022, Enel also
worked in Guatemala on an energy transition roadmap
for the country with the aim of proposing scenarios thatwill enable it to comply with the commitments made in
the NDC;• in Argentina, the decision to maintain the commitment

made in the NDC 2020, ratifying the commitment to
reduce emissions by 27.7% by 2030, compared to thefirst NDC presented in 2016. Also in this case, as in othercountries, Enel has promoted advocacy actions with thedevelopment of the Energy Transition Roadmap project.
Enel also promoted the adoption of Resolution no. 370
of 2022, which provides for a mechanism for the sale ofelectricity from renewable sources for distributors of theWholesale Electricity Market (MEM) through the Renewable Energy Forward Market (MATER);• in Chile, Enel implemented advocacy activities in supportof the adoption of Law no. 21,455. This piece of legislation aims to address the challenges of climate change
in the country and establishes climate governancemechanisms, setting the goal of carbon neutrality to beachieved by 2050 at the latest. Enel’s vision is alignedwith the law. This is also the background to Enel’s decision to exit coal-fired generation in the country, which
ended in September 2022 with the closure of the Bocamina II plant;• again in Chile, in June 2022, the Ministry of Economy,

Development and Tourism implemented Council Agreement No. 3121 of 2022, which creates the “Committee
for the Development of the Green Hydrogen Industry”
and establishes the rules that will govern its operation.
The Committee’s objective will be to accelerate the sustainable development of this industry by supporting thenational strategy for green hydrogen. Enel has actively
participated with several key players in the developmentof green hydrogen in the country and, moreover, has
contributed to the public debate with the Energy Transition Roadmap project together with the consulting firmenergiE, in collaboration with public and private stakeholders;1Letter to stakeholders

2

We empower sustainable progress• in Brazil, Enel promoted the publication of Decree No.

11,075. It defines the procedures for the Sectoral Plans
for Climate Change Mitigation and creates the National
Greenhouse Gas Emission Reduction System (SINARE),in order to establish emission reduction targets for compliance with the national NDC. In addition, Resolution no.
6 of June 2022 of the National Energy Policy Council
establishes the National Hydrogen Program (PNH2) andcreates a Committee with the aim of coordinating andsupervising the planning and implementation of thePNH2. Enel has also supported the strengthening of climate ambition envisaged by Brazil’s second NDC update.
This strengthening aims to increase emissions reductions by up to 50% by 2030 and achieve greenhouse gas
neutrality by 2050. Enel has positively assessed thesedevelopments, which will increase the possibilities ofdevelopment of renewable companies. It has supported
legislative action with the Energy Transition Roadmap
project carried out with the support of Deloitte and incollaboration with public and private stakeholders.

On the African continent, the main climate dossiers on
which Enel has carried out advocacy activities are:• in South Africa, the Climate Change Act, which createsa regulatory framework that will enable an effective response to climate change and a long-term transition toa low-carbon economy. The provisions of this law are inline with the Enel Group’s operational objectives for renewable development in South Africa;• in Morocco, Enel has promoted the adoption of a new law

aimed at regulating the production of its own electricity,while guaranteeing the security of the national networkand compliance with the principles of transparency andnon-discrimination between the various market players.
For the first time, the law also provides for the right ofaccess to electricity storage services, as well as the rightto sell the excess to the TSO.

In the Asia Pacific region, the main dossiers on which
Enel’s advocacy actions have focused are:• in South Korea, the opening of the Power Purchase
Agreement (PPA) market. It enables renewable generators to sell electricity directly to end users. Enel sees thisinitiative as a significant step towards the development
and use of renewable energy. In addition, the first auction program dedicated to onshore and offshore wind
has been launched. Enel also supported this legislative
initiative as auctions conducted in a transparent and3

Materiality analysis

4

Our performance5

Appendix

structured manner are recognized as one of the best
support mechanisms for the development of renewableenergy;• also in South Korea, the 10th Basic Plan for Electricity
Supply and Demand has been finalized. It envisages thatthe national generation mix to 2036 will be dominatedby nuclear and renewables, with a gradually decreasingrole for fossil fuels. Hydrogen and ammonia will be usedin LNG and coal-fired power plants to reduce emissions.
In this context, Enel has supported the development of
renewable energy, but considers it inefficient to use hydrogen to produce electricity;• in Vietnam, Enel promoted the finalization of a new andmore ambitious NDC and, in particular, the strengthening of the unconditional objective of reducing greenhouse gas emissions by 15.8% by 2030 compared to abusiness-as-usual scenario of the reference year 2010.
Subject to international support and financing, the 2030
reduction target has been raised to 43.5%. In this context, the country also reiterated its goal of achieving carbon neutrality by 2050. Enel supported this decision as
it will accelerate the decarbonization of Vietnam by offering development opportunities for renewable sourcesand end-use electrification;• in Australia, the Enel Group supported the plans of the

new Federal Labor Government, aimed at mobilizing new
financing for the expansion of the transmission grid andthe establishment of a program to attract greater investments in the renewable energy sector;• In India, ancillary services regulations have been adopt-ed, establishing the introduction of Secondary Reserve
Ancillary Services (SRAS) and Tertiary Reserve Ancillary
Services (TRAS). The regulations allow all types of technology to provide SRAS and TRAS, including batteryenergy storage systems (BESS). Enel is in favor of theseregulations and believes that they encourage the development of renewable sources and distributed storage;• India’s Ministry of Energy has also issued the Green Ener-gy Open Access Rules. The objective of this regulation is
to increase the availability and use of renewable energy
and to promote the growth of the sale of energy fromrenewable sources with open access. Enel welcomed theenactment of this regulation as it believes that it fosters
new opportunities for the development of renewablesources.

Zero emissions ambition101

In addition to the direct advocacy activities, Enel is actively contributing to the debate on how best to address
the challenge of climate change through specific initiatives. In 2022, these included:• the GSEP (Global Sustainable Electricity Partnership)

Global Electrification Monitor, aimed at illustrating thestate of the art of decarbonization of energy end-uses
through electrification. The initiative was launched during the annual GSEP CEO Summit held in 2022 in Marrakech. Through the use of specific indicators for the
15 countries analyzed, it highlights to what extent thepenetration of electrification in end-uses is in line with
the International Energy Agency’s scenarios for achieving the objectives set by the Paris Agreement. Alsoin this context, GSEP hosted a High-Level Dialogue onelectrification during New York Climate Week 2022. In
this context, 14 companies have signed the Catalyzing
Electrification agreement, to accelerate electrificationof energy end-uses, aimed at reducing greenhouse gases;• development and collaboration on several Energy

Transition Roadmap projects, to stimulate debate on
how best to accelerate the reduction of greenhousegas emissions. In this context, in Europe Enel collaborated with the Enel Foundation and Ambrosetti on the
Energy Transition Roadmaps for Italy and Spain andsupported Eurelectric in the work to define the new
decarbonization roadmap for Europe. In Latin America, Enel has completed Energy Transition Roadmap
projects in several countries, including Chile, Brazil,
Peru, Panama and Costa Rica. In several cases, the results of these projects were presented and discussed in
the context of COP 27 events;

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• strengthening commitments to Sustainable Deve-lopment Goal 7 through the Energy Compacts (EC)promoted by UN-Energy and SEforALL. Compacts arevoluntary commitments by companies, governments
and other stakeholders to accelerate action for universal access to clean and affordable energy for all. In thiscontext, the Group announced Enel Chile’s new Energy
Compact, promoted in collaboration with the Universidad del Desarrollo and the Government of the Santiago
Metropolitan Region, which aims to electrify the entire
bus fleet by 2030 and expand the network of charging
stations for electric vehicles, both public and private;• participation in a number of specific advocacy initia-

tives, through letters and appeals developed under ad
hoc alliances. For example, the Enel Group, together
with over 150 business leaders, has signed an open
letter by CLG Europe to the President of the European
Commission, Ursula von der Leyen, to invite the EU tostrengthen energy security by accelerating the green
transition through the REPowerEU plan. In addition,
Enel has participated in lobbying activities in support ofthe 100 gCO2/kWh threshold – published in the Delegated Acts of the European Taxonomy – which allows
an activity to be defined as environmentally sustainable
if its CO2 emissions are below this threshold. Enel not
only supports compliance with this threshold, but alsoasks to specify how this threshold should be reduced
over time until it reaches zero by 2050. Finally, through the We Mean Business Coalition, the Group signed
a declaration during COP 27, together with over 270
companies and civil society leaders, reaffirming its
commitment to limit global warming to 1.5 °C, while ensuring a just transition and a fair and inclusive future forall, and calling on governments to maintain it as a goal
during the negotiations.

1

Letter to stakeholders

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We empower sustainable progress

Enel’s commitment to fightagainst climate change throughassociations and organizations
2-28
The Group plays an active role in various industry andmulti-stakeholder associations and organizations with theaim of promoting issues concerning energy transition andthe commitment to fight climate change at national andglobal level. Enel is committed to ensuring that the various industry associations, business networks and thinktanks of which it is a member operate in full compliancewith the objectives of the Paris Agreement and the decarbonization roadmap established by the Group. Eneltherefore systematically verifies the consistency of theassociations’ positions with the climate policies sharedat the Group level. This verification process is carried out
in two stages: (i) before joining the association, throughan in-depth analysis of the body’s by-laws, in line with the
Climate Policy issued in September 2021; (ii) after joining
the association, by actively contributing to its work and/or
taking positions of responsibility within it or promoting theEnel Group’s position within working groups.
Finally, 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 the objectives of the Paris Agreement and Enel’s climate risk mitigation strategy, the Company assesses whether the misalignment could compromise the effectiveness of Enel’s
advocacy and participation, and may eventually decide towithdraw from the association.
By way of example, in recent years we have withdrawn ourparticipation from some associations whose views on climate policies and how to achieve the energy transition
were persistently different from Enel’s in terms of fighting
climate change and pursuing the goals set forth in the Paris
Agreement. On the other hand, it may happen that in someassociations, despite the existence of a misalignment, Enel
decides to continue to be a member with the aim of influencing and aligning association decisions with its own
vision of achieving the targets set by the Paris Agreement.
Back in 2020, an initial selection of the main industrial associations and organizations was carried out to identifyalignment with Enel’s climate position, an activity that continued in 2021.
In 2022, the analysis for assessing alignment with the Paris
Agreement was extended to cover all associations involvedin climate advocacy activities, of which Enel is a global member. In addition, as in 2021, the list of the main associations
most involved in climate advocacy activities with which Enel
collaborates worldwide (https://www.enel.com/content/dam/3

Materiality analysis

4

Our performance5

Appendixenel-com/documenti/investitori/sostenibilita/2022/enel-engagement-associations-involved-climate-policy-advocacy.
pdf) was also published for 2022, including the assessment,
for each of them, of the alignment with the Paris Agreement.
This alignment was carried out on the basis of a specificmethodology using targeted evaluations on the science ofclimate change, climate policies at global and national level,
disclosures on the topic, and technologies proposed.
In particular, in 2022, the Enel Group identified for eachcountry and/or region of presence and/or interest themain associations involved in advocacy activities of climate
policies and conducted, for each of them, a qualitative
assessment in order to identify the association’s level ofalignment with the Paris Agreement. This assessment was
carried out on the basis of six main dimensions:i. Climate Science – the extent to which the association
involves itself in the issues related to climate change
and in the results and evidence of the Reports published by the IPCC (Intergovernmental Panel on Climate
Change);ii. Climate Policy – the extent to which the association
supports the UNFCCC process and other global policy
initiatives;
iii. Carbon Pricing Climate Policies – the extent to which
the association supports Carbon Pricing (Carbon Tax,
Emissions Trading);
iv. Non Carbon Pricing Climate Policy – the extent to which the association supports other types of climate policies related to energy efficiency, renewable energy and
GHG regulation;v. Communication – the extent to which the association
communicates on climate issues;vi. Energy Transition & Zero Carbon Technologies – the extent to which the association supports innovative and effective technologies in the fight against climate change.
The methodology developed by Enel for assessing thealignment of associations to the Paris Agreement provides,
in particular, that to each of the six dimensions listed above
is assigned a level of alignment (high, medium or low). Then,a numerical score is given to each of the dimensions, whichreflects the level of alignment assigned. The average of thescores of the six dimensions generates the final result ofalignment of the association to the Paris Agreement, which
can be: high, medium/high, medium, medium/low or low.
In general, Enel believes that the most effective approach
when an association is not aligned with the Paris Agreement
is to remain in such association with the aim of orienting andaligning its decisions with Enel’s own vision of achieving thetargets set by the Paris Agreement. However, in those cases
where the yearly assessment of the level of alignment with
the Paris Agreement for an association result to be “low”,
then Enel will activate an escalation strategy encompassing
the following steps:

Zero emissions ambition103• Step 1: raise the issue, within the association, of the lackof alignment to the Paris Agreement to initiate an in-depth discussion with the aim of improving the alignment.
• Step 2: if, despite of the measures described in Step 1, theassessment of the level of alignment to the Paris Agreement still results to be “low” for two consecutive years,
then the issue will be brought to the attention of the CEO,who will assess possible counteractions which may also
include the decision for Enel to leave the association.
The following table summarizes the main results of the re-Industry
association

Eurelectric

Description

The Union of the Electricity
Industry - Eurelectric is thesector association which
represents the common
interests of the electricity
industry at pan-European
level, plus its affiliates andassociates on several othercontinents. The association
counts over 34 full members,
representing over 3,500
companies in Europe.

view of industry associations, conducted during 2022, according to the methodology of assessment of alignment
with the Paris Agreement as set out above. In particular,
for each association listed, the following information is reported: (i) brief description of the association; (ii) main actions taken by the association in 2022 and its assessmentof alignment with the Paris Agreement; (iii) Enel’s main roles
within the association; (iv) Enel’s main actions developed in
2022 within the association.

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

Eurelectric contributes to thedevelopment and competitivenessof the electricity industry,
provides effective representationof the industry in public affairs
and promotes the role of alow-carbon electricity mix. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

Enel is well represented in theassociation, with more than
40 delegates from Group
companies in Italy, Spain andRomania holding key positions
within the association (atdecision-making level and in
the Committees, such as theElectrification and Sustainability
Committee or the Sustainability
Working Group).

In 2022, Eurelectric contributed to
two major studies:• Market Design, developed byCompass Lexecon (expectedpublication date: March 2023);• Decarbonization speedways,
which analyzes the EU’s path
towards carbon neutrality by
2050.
Enel actively contributed to both
initiatives, providing know-how,content and resources.
Earlier this year, Eurelectric
launched a report – co-producedwith EY – at the EVision event,focusing on how electric vehicles
and charging stations can become
an asset for the networks that
support them. The Head of Global
e-Mobility at Enel X Way, spokeat the session “Ensuring theright regulatory framework foraccelerating electric mobility”.
During the Power Summit 2022,
Enel participated by organizing asession on Market Design.
During the year, Enel helped
support the development ofEurelectric’s positions andadvocacy actions on the Fit for 55
package.
In 2022, Enel continued to serve
as Chair of the Electrificationand Sustainability Committee,
Eurelectric’s key committee
for discussing and deciding onelectrification, energy efficiency
policies, and sustainability,
including decarbonizing the
economy beyond the power
sector, one of the core themes ofEurelectric’s vision.

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1

Letter to stakeholders

Industry
association

WindEurope

2

We empower sustainable progress

Description

3

Materiality analysis

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

4

Our performance5

Appendix

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

WindEurope is the voice ofcompanies and organizations
operating in the windindustry. It actively promotes
wind energy in Europe andworldwide, has over 450
members and is active inover 40 countries.

Through effective communicationand engagement in policy-making
processes, WindEurope facilitatesnational and international policies
and initiatives that strengthen thedevelopment of European andglobal wind energy markets. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel has participated in theassociation as a member ofthe Board and as Chair of theWorking Group Market andInvestment Working Group; Enelalso participates with experts
in all the association’s working
groups.

During 2022, Enel collaborated
with WindEurope in the European
Parliament and Council on
the provisions of the “Fit for
55” package and REPowerEU,
including in particular therevision of the Renewable Energy
Directive. Enel has strengthened
its presence in the association,
especially on the priorities ofelectrification and in the debate
on market design. Enel has
participated in the main events
organized by the associationand has contributed to the major
publications, reports and public
letters issued by the association.

SolarPower Europe SolarPower Europe
represents organizations
active along the entire PV
value chain, with the aimof defining the regulatoryenvironment and improving
business opportunities forsolar photovoltaics in Europe.

Among the objectives of theassociation is the successful
positioning of solar PV basedenergy solutions in the European
context through dedicatedstudies and energy market
analysis. Through effective
communication and engagementin policy-making processes,
SolarPower Europe facilitatesnational and international policies
and initiatives that strengthen thedevelopment of European andglobal solar energy markets.
The level of alignment with theParis Agreement was deemed“high”.

During 2022, Enel’s presence
was confirmed within the Board,
the Advocacy Committee andthrough the participation ofexperts in 12 of the association’s
14 Workstreams.

During 2022, Enel collaborated
with SolarPower Europe in theEuropean Parliament and Council
on the provisions of the “Fit for
55” package and REPowerEU,
including in particular therevision of the Renewable Energy
Directive. Enel is strengthening
its presence in the association,
especially on generation priorities
and in the debate on market
design.
Enel has participated in theassociation’s main events,
including the “CEOs Retreat” andthe SolarPower Summit in April
2022, the Sustainability Solar
Europe event in October 2022
and various initiatives, including
the sponsorship of the Solar
Stewardship Initiative (SSI).

The European
Association for
Storage of Energy(EASE)EASE promotes the role of storage
in a decarbonized energy system.
The level of alignment with theParis Agreement was deemed“high”.

Enel chairs the association.
Enel is also active in the
Applications & Economics
Working Group.

EASE, located in Brussels,
Belgium, is the leading
member-supported
association representing
organizations active acrossthe entire energy storage
value chain. EASE supports
the deployment of energy
storage to support the
cost-effective transition to a
resilient, climate-neutral, andsecure energy system.

Enel continued its work within
the Renewable Hydrogen andElectrification Workstream
as Chair and Co-Chair of theIndustrial Strategy Workstream.

Enel has worked on numerous
joint position papers and common
recommendations to address
specific regulatory challenges
that could affect the storage
value chain. In addition, it has
collaborated with the association
to respond to the EC’s numerous
public consultations, for example
the “Renewable Energy Projects –Power Acquisition Processes andAgreements” (April 2022). Enelalso contributed to the position
paper on the next market design
review (December 2022) and
was an exhibitor and sponsor at
the fifth “EASE Energy Storage
Global Conference” in October
2022. Several Enel representatives
attended the event to discuss thelatest developments on energy
storage technologies, regulatory
and policy frameworks, and thefuture of the storage market.

Zero emissions ambition105

Industry
association

Description

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

SmartEn

SmartEn is the associationof market players
promoting decentralized
and decarbonized power
generation in favor of
flexible demand forrenewable energy sources.

SmartEn promotes theenergy transition throughsmart cooperation between
consumption, distribution,transmission and generation,acting as an equal partner in an
integrated energy system. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel’s presence at the top of
the association’s structure
was confirmed in 2022 with
its re-election to the Boardand to the position of Chair of
the Distributed Flexibility Task
Force. Enel also participates withexperts in the Digital Agenda
and e-mobility working groups.

In 2022, the President of the EU
DSO Entity (Enel’s e-distribuzione
representative) joined the
SmartEn Advisory Council
with the aim of bringing the
DSOs’ perspective on market
flexibility to the association.
Enel has worked on numerous
position papers and sharedrecommendations relating to theenergy efficiency of the system,
the empowerment of energy
users and the decarbonizationof the energy sector, proposing
the Group’s positioning on the“Fit for 55” package. Finally,
Enel sponsored the eventon “Demand-Side Flexibility:
Quantification of Benefits inthe EU” (28 September 2022)
and participated as a speakerat the event with two high-level
representatives.

RES4Africa

RES4Africa brings together
a network of international
leaders from across theclean energy value chain
and supports the creationof an enabling environment
for renewable energy
investments and strategic
partnerships. RES4Africa
serves as a bridge between
members and partners
in emerging markets to
exchange perspectives andexpertise.

The “renewAfrica” initiative wasofficially launched at European
level in 2019. It is a European
initiative supported by multiple
stakeholders to accelerate thetransition to sustainable energy
in Africa. It promotes the creationof a European program capableof catalyzing investment inrenewable energy for the futuresustainable development of
the continent. RES4Africa is amember of the Africa-Europe
Foundation, a platform launchedin 2021 by Friends of Europe
and the Mo Ibrahim Foundation
to facilitate multi-stakeholder
dialog, catalyze collaboration andunlock new opportunities that
can transform dialog into action.
The level of alignment with theParis Agreement was deemed“high”.

Enel Green Power is one of thefunding partners and chairs theassociation, with the current
CEO of Enel Green Power taking
the role.

Participation in working groups,
events, co-definition of work
priorities, co-drafting of position
papers.

World BusinessCouncil for
Sustainable
Development(WBCSD)

The WBCSD is a globalorganization led by theCEOs of more than 200
international companies
working together toaccelerate the transition toa Net-Zero, nature positiveand more equitable future.

The WBCSD works to support
Enel holds the role of Council
leading sustainability companies
Member, through the CEO.
to drive integrated actions toaddress global challenges throughthe sharing of best practice andthe development of tools andguides that can stimulate andadvance members on their own
pathway to sustainability. The
level of alignment with the Paris
Agreement was deemed “high”.

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In 2022, Enel actively participatedin climate-related projects (forexample, Policy Advocacy andMember Mobilization, SOS 1.5,
Energy Pathway and Mobility
Decarbonization), as well as
contributing to the creation of
position papers and publications.

1

Letter to stakeholders

Industry
association

2

We empower sustainable progress

Description

3

Materiality analysis

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

4

Our performance

Enel’s main roles within
the association

5

Appendix

Main actions taken by Enelwithin the association in 2022

United Nations
Global Compact(UNGC)The United Nations Global
Compact is the largest global
corporate sustainability
initiative, created withthe goal of promoting asustainable economic modelthrough the development
and implementation ofsustainable practices andpolicies.

UNGC works to create a

Enel co-chairs the CFO Coalition,and is also the Patron of the newsustainable and inclusive
Transformational Governanceglobal economy by supporting
initiative.
companies to do business
responsibly, aligning strategies
with the ten principles on humanrights, labor, environment and anticorruption, as well as taking action
to promote the goals of the 2030
Agenda. The level of alignment
with the Paris Agreement wasdeemed “high”.

The Group has participated inworking groups and meetings
concerning, inter alia, the Just
Transition Think Lab, as well as
contributing to the creation of
position papers and publications.

American Clean
Power Association

American Clean Power (ACP)
is the voice of companies
across the wind, solar,
storage, and transmission
industries that are powering
America’s future andproviding cost-effective
solutions to the climate crisis,
while creating jobs, spurring
massive investment in the
US economy, and driving
high-tech innovation acrossthe nation.

ACP focuses on US federal
legislative and administrative
advocacy, while also supporting
advocacy at State level. It supports
policies that will transform the
US power grid into a low-cost,reliable, renewable energy system,
including support for renewableenergy demand, sensible reforms,
permitting, transmission systemconstruction, predictableinternational trade rules, andworkforce development. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel holds a position on the
Board of Directors of ACP.

Advocacy for federal legislationto accelerate the deploymentof wind, solar, energy storage,transmission and green hydrogentechnologies. Commitment tocollaborate with the association topromote clean energy.

Confindustria

Confindustria is the main
association representing
manufacturing and service
companies in Italy. Its
members include over
150,000 small, medium
and large companies.
Confindustria's mission is topromote the developmentof enterprises as the driving
force behind the country's
economic, social and civil
growth.

Development of workshops,
seminars and summary
documents including observations
and/or proposals suggested by
the association regarding energy
and environmental issues in local,
national and European contexts.
The level of alignment with theParis Agreement was deemed“medium/high”.

In addition to holding importantroles in local and national
associations, Enel takes part invarious technical working groups(most of all, the Energy andEnvironment Working Groups),
seeking to promote activities inline with climate targets.

Advocacy activities for specificinitiatives such as: preliminary
draft analysis of the “Operating
Methods” relating to the draft
regulation governing the Waste
Traceability System and the
National Electronic Register
for Waste Traceability (RENTRI);
analysis and submission ofcomments on the proposal for an
EU regulation on F-gases; analysis
and preparation of amendment on
excavated earth and rocks in small
construction sites; contributions
for Confindustria positioning
documents on the public
consultation on the PNRR measure
on agrivoltaic.

Edison Electric
Institute

The Edison Electric Institute(EEI) is the association that
represents all investor-owned
US electric utilities.

EEI focuses on US federal
Enel is a member of various
legislative and administrative
working groups.
advocacy, while also supporting
advocacy at regional and Statelevel. It works to encourage
policies that support investorowned private utilities, with afocus on decarbonization. The
level of alignment with the Paris
Agreement was deemed “medium”.

Enel carries out federal lobbying
activities in the United States(legislative and administrative),advocacy activities at the FERC
and at the ISO/RTOs, as well as
direct and indirect State lobbying
activities (through funding).
In addition, Enel supports greater
penetration of renewables forutilities.

Clean Energy
Council

The Clean Energy Council(CEC) is the spearhead of
the clean energy industryin Australia. It represents
hundreds of leading
companies operating in thesolar, wind, energy efficiency,hydro, bioenergy, energy
storage, geothermal andmarine sectors, along withover 5,800 solar installers as
members.

Its mission is to work with local,
State and Federal governments
to solve technical, policy andfinancial problems in thechallenges faced by theclean energy sector. The levelof alignment with the Paris
Agreement was deemed “high”.

Participation in meetings,
committees and working groups.

Enel is a key member witha strategic presence inimportant working groups
and committees, such as the
Policy and Advocacy Advisory
Committee.

Zero emissions ambition107

Industry
association

Description

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

Solar Energy
Industries
Association

The Solar Energy Industries
Association (SEIA) is thenational trade association
for the solar and solar +storage industries. SEIA
advocates policies that will
enable solar to reach 30%
of US electricity generation
by 2030, to create jobs inevery community, and toestablish fair market rulesthat promote competition
and the growth of reliable,
low-cost solar power.

SEIA focuses on US Federal
legislative and administrative
advocacy. It works to defend
the interests of the solar energy
industry. The level of alignment
with the Paris Agreement wasdeemed “high”.

Enel is a member with apresence in several working
groups.

Active participation to promotelarge-scale solar power andaddress the critical issues in the
sector.

International
Emissions Trading
Association (IETA)IETA is a non-profit
corporate organization withmore than 100 members
across companies,
geographic areas anddisciplines promoting theuse of carbon trading as alever to pursue
global climate ambition.

IETA’s mission is to enable
companies to engage in climate
action and establish effective
market-based trading systems forgreenhouse gas (GHG) emissions.
In pursuit of its mission, it aims
to: a) promote an integrated viewof carbon markets and prices;b) participate in the design andimplementation of national andinternational rules and guidelines;
and c) provide up-to-date andcredible information on emission
trading. The level of alignment
with the Paris Agreement wasdeemed “medium/high”.

Enel holds a position on the
Board of IETA, contributing tohelp focus IETA’s attention on
ensuring the truly sustainable
implementation of Emissions
Trading systems worldwide. Enelis also active in working groups
and task forces.

Participation in dedicated highlevel workshops in European andinternational forums on GHG
markets and trading systems;
position papers supporting theGroup’s position on the EU ETS;
promotion of market mechanisms
and participation in GHG markets;
engagement with Latin American
policy makers.

Confederación
Española deOrganizaciones
Empresariales(CEOE)CEOE is the national
business association
representing and defending
Spanish companies andentrepreneurs. CEOE
voluntarily integrates
two million companies
and freelancers fromall business sectors. In
Europe, it is an active partof BusinessEurope, whichbrings together European
business associations.
It actively supports theinternational negotiation on
climate change, participatingin the process and assisting
the COP.

It represents and defends Spanish
companies and entrepreneursin economic, social andtaxation matters etc. before thegovernment, State agencies,
trade unions, political parties
and international institutions. It
analyzes laws and government
proposals, and makes proposals
on behalf of its members. The
level of alignment with the Paris
Agreement was deemed “high”.

Endesa is a member of thecommission for industry,
international relations, healthand consumer affairs, and thefinance economy.

Participation in various
commissions where topical issues
at the European and Spanish level
are analyzed, and in several workgroups.

Kyoto Club

Kyoto Club is a nonprofit organization, which
members are businesscompanies, associations
and local municipalities andgovernments engaged inreaching the greenhousegas reduction targets set
by the Kyoto Protocol, by
the EU ones for 2030 andby the December 2015 Paris
Agreement.

Development of documents,
position papers, workshops,
training courses, campaigns andprojects aimed at professionals,
operators in the sector, public
administrators and students
concerning the latest issues inthe energy-environment sector,
from renewables to e-mobility
and the circular economy. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel is a member of the
Kyoto Club and participatesin round tables on renewable
development, energy efficiency,
environmental education andresilience to climate change.

Joint working tables on renewables
development, specific advocacy
activities and policy proposals on
the energy transition.

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1

Letter to stakeholders

Industry
association

2

We empower sustainable progress

Description

3

Materiality analysis

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

4

Our performance5

Appendix

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

Elettricità Futura

Elettricità Futura is the main
association of Italian electricutilities. It defends theirinterests and creates value by
supporting the sector in theenergy transition process.

Elettricità Futura represents
associates and their issues on
institutional tables in Italy andEurope. It promotes networking
among companies throughmeetings and initiatives on specifictopics, including working groups
and technical tables on energy
and energy transition issues. The
level of alignment with the Paris
Agreement was deemed “medium/high”.

Enel is a shareholder in Elettricità
Futura and actively participatesin working groups and technicaltables.

Positioning on the European
Commission’s “Fit for 55”
package; positioning on support
measures for renewable energy
communities; discussion tables onsustainable hydrogen.

European Heat
Pump Association(EHPA)The European Heat Pump
Association (EHPA) is thevoice of the European heatpump industry in Brussels.
The association works todefine a European policy
to enable the heat pumpindustry to thrive andbecome the first choice forheating and cooling by 2030.

The EHPA supports, communicatesand provides expert political,
technical and economic input
to European, national and local
authorities and its members.
It organizes high-level events,and manages and participates inseveral EU projects.
All its activities are aimed ataccelerating the development of
the market for heat pumps forheating, cooling and hot waterproduction. The level of alignment
with the Paris Agreement wasdeemed “medium/high”.

Enel is a member of various
committees and task forces,
and participates in a number ofworking groups.

Enel joined EHPA in 2022, sharing
with the association the objectivesof electrification and achieving the“Fit for 55” targets at European
level.

Bettercoal

Bettercoal is theinternationally recognized
standard that works toward
a responsible global coalsupply chain.
Bettercoal assesses coalproducers according to thethree ESG – Environment,
Social and Governance –pillars, according to thecriteria set out in its code of
conduct, and develops plansfor each company it assesses
to improve their businesspractices.
Founded by a group of majorcoal buyers, Bettercoal aims
at constant improvements
in sustainability practices incoal mining.

During 2022, as members ofBettercoal within the working
group dedicated to Colombia,
we participated in the delegationthat traveled to Colombia, forthe first time since 2018, withthe aim of further improving theunderstanding of the criticalissues surrounding coal mining
in the country. We can therefore
promote better relations withall stakeholders involved in thiscomplex environment, frombusinesses to government andfrom international NGOs to local
communities. During the visit,
several meetings were organizedwith about 64 stakeholders,
including business associations,communities and local
governments.
In addition, in 2022, following
the change in international
scenarios, a new working group
was established, dedicatedspecifically to South Africa. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel is a member of various
working groups and isrepresented on the association’s
Board.

Enel has promoted specificsustainability issues with regard tocoal producers.

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Industry
association

Description

Main actions undertaken by the
association in 2022 and levelof alignment with the Paris
Agreement

Enel’s main roles within
the association

Main actions taken by Enelwithin the association in 2022

European Business The European BusinessCouncil - Energy
Council (EBC) currently
Committee
represents around 2,500
European companies andindividuals, which become
its members of it throughtheir respective national
chambers of commerceor business organizations.
Many of these companies
participate directly in one
or more of the EBC’s many
sectoral committees, whose
work covers a wide variety of
economic sectors.
The EBC consists of 22
sectoral committees, whose
work aims to improve thelocal business environment
in a wide range of economic
sectors.

EBC’s core mission is to foster
a barrier-free business andinvestment environment thatmakes doing business in Japanless difficult and costly. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel is a member of several
committees and working
groups.

Enel has participated in thedrafting of a white paper on
Demand Response.

Red Argentina dePacto Global

The association treats global
goals as local issues, as thecooperation of all stakeholders,both public and private, inevery corner of the planet andstructured at global and local
levels, will be necessary to
make substantial progress on
the common and shared 2030
Agenda. The local Network,
launched in 2004, currently hasa Board of Directors consistingof 34 members, whose mandateis renewed every two years at
a Shareholders’ Meeting. The
level of alignment with the Paris
Agreement was deemed “high”.

Enel is a member of various
working groups and actively
participates in a number ofworkshops.

Enel has actively participated in
the debate and workshops on
climate and energy issues asorganized by the association.

The largest corporate social
responsibility initiative inthe country, with over 900
participants and a presence
in 20 provinces. Its goal is tomobilize the business sector
and other stakeholders tocommit to the 10 universal
principles of the United
Nations and, consequently,
to undertake the purposeof contributing to thesolution of the greatest
challenges facing the planet
and humanity between now
and 2030: the Sustainable
Development Goals
approved by the United
Nations General Assembly in
September 2015.

For the full list of the main associations and the related assessment, follow this link to the Enel website: https://www.
enel.com/content/dam/enel-com/documenti/investitori/

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sostenibilita/2022/enel-engagement-associations-involved-climate-policy-advocacy.pdf.

1Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

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

2-12

2-13

2-19

2-20

2-21

2-24

TCFD: GovernanceCompetencesof corporate bodies

Chairman

The corporate governance system adopted by Enel is oriented toward the goal of sustainable success, as it aims tocreate value for shareholders over the long term, promoteawareness of the importance of the Enel Group’s operating
activities, from an environmental and social point of view,and the consequent need to adequately consider the interests of all the relevant stakeholders.

Functions
Overseeing the climatechange strategy
Coordinating
the Board of Directors

Board ofDirectors

Chief Executive
Officer

Functions
Developing and overseeing the sustainablebusiness model for guiding the energy
transition

Control and Risk
Committee
Corporate Governanceand Sustainability
Committee

Management
level

Functions

Holding Functions
Global Service Functions
Global Business Lines
Regions and countries

Overseeing theclimate change
strategy (risks,planning anddisclosure)

FunctionsGroup Investments
Committee

Developing the Strategic Plan and measures
for managing the risks and opportunities
tied to climate change and the energy
transition

Functions
Approving investments thatalign with Enel’s climatechange goals

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111

The Board of Directors of Enel SpA:

• Pursuant to the Articles of Association, the Board of Di-

rectors of Enel SpA is endowed with broad power forthe ordinary and extraordinary administration of theCompany 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 Business Plan (which incorporate the main objectives
and actions planned, including with regard to sustainability issues, to drive the energy transition and tackle
climate change), taking into consideration the analysis of
issues relevant to the generation of long-term value andthus promoting a sustainable business model.
• It plays a guidance role and provides an assessment of
the adequacy of the Internal Control and Risk Management System (so-called “ICRMS”). In this regard theBoard defines the nature and level of risk compatible
with the strategic objectives of the Company and theGroup, including in its assessments any elements that
may be relevant in the perspective of the Company’ssustainable success. The ICRMS consists of the set ofrules, procedures and organizational structures aimed atenabling the identification, measurement, management
and monitoring of the main corporate risks, including
risks related to climate change and, more generally, risks
that the Group’s activities may determine in the fields ofenvironment 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 considering the need to arrange, retain and motivate people with the skills and professionalism requiredby the role covered, submitting this policy to the Shareholders’ Meeting for approval.
• During 2022, the Board addressed climate-related issues, reflected in the strategies and related implementation methods in 12 of the 16 meetings held, in particular during: (i) the review and approval of the Business
Plan of the Company and the Group; (ii) the definition ofEnel’s remuneration policy for 2022; (iii) the review of thecontents of the Sustainability Report for the 2021 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-re-112

Sustainability Report 2022

lated issues as part of the in-depth studies dedicated tooperations related to the decarbonization strategy andsustainable finance, as well as in relation to investor dialog activities.
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 andbased 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 deci-sion-making activities concerning the Company’s andGroup’s corporate governance and sustainability, including climate change issues and the dynamics of theCompany’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 thePriorities’ Matrix, which identifies the priority issues forstakeholders in light of the Group’s industrial strategies;(ii) the methods for implementing the sustainability
policy; (iii) the general approach and structure of thecontents of the Non-Financial Statement and the Sustainability Report (possibly as a single document), as wellas the completeness and transparency of the information contained therein, including on climate change, andtheir consistency with the principles laid down by thereporting standard used, issuing a prior opinion on thismatter to the Board of Directors called upon to approvethese documents.
• During 2022, the Board dealt with climate-related issues, reflected in the strategies and related implementation methods in 3 of the 6 meetings held, in particularduring the review of: (i) the Sustainability Report for the2021 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 20232025; (iii) updates on the main activities carried out in
2022 by the Enel Group in the field of sustainability, on
the status of implementation of the Sustainability Plan
2022-2024 and regarding Enel’s inclusion in the mainsustainability indices.

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3

Materiality analysis

4

Our performance5

Appendix

The Control and Risk Committee:

The Chairman of the Board of Directors:• The Committee has the task of supporting the Board• In exercising the function of stimulating and coordina-of Directors’ assessments and decisions relating to
the ICRMS, also as concerns climate risks and thoserelating 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 represent correctly 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 relevant issues for the purposes of
the ICRMS dealt with in the Non-Financial Statement
and the Sustainability Report (possibly as a single document) and containing the Company’s climate disclosure, issuing a prior opinion on the matter to the Boardof Directors, which is called upon to approve these
documents.
• During 2022, the Board dealt with climate-related issues, reflected in the strategies and related implementation methods in 8 of the 14 meetings held, in particular during the review of: (i) assessment of the relevant issues for the purposes of the ICRMS dealt within the Sustainability Report for the 2021 financial year,
coinciding with the Consolidated Non-Financial Statement pursuant to Legislative Decree no. 254/2016 forthe same year; (ii) the in-depth analysis of investor dialog activities; (iii) meetings with the Heads of the Enel
Green Power and Thermal Generation and Enel Grids
Global Business Lines and the Europe and North America Regions in relation to the activities carried out andthe existing risks in the respective remits, and to thetools used to mitigate their effects; (iv) the analysis of
the degree of compatibility of the main risks related tothe strategic objectives of the Business Plan.

The Nomination and Compensation
Committee:• Supports the Board of Directors, inter alia, in its assess-ments and decisions relating to the size and optimalcomposition of the Board itself and its Committees,
as well as the remuneration of Directors and Key management personnel. In this regard, compensation policy
for 2022 specifies that a sizeable portion of the variable
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.

ting the activities of the Board of Directors, plays a proactive role in the process of approving and monitoring
corporate and sustainability strategies, which are strongly oriented toward decarbonization and the electrification of consumption.
• During 2022, the Chairman also chaired the Corporate
Governance and Sustainability Committee.

The Chief Executive Officer:• In exercising the power he/she holds, the CEO has de-fined 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 institutions 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 managementof the Company, he/she is the person most empowered
to deal with institutional investors, providing them withany appropriate clarifications on matters falling within
the management powers entrusted to him/her, in linewith the Policy for the management of engagement withinstitutional investors and with the generality of Enel’sshareholders and bondholders.
• He/she holds the role of Director in charge of setting up
and maintaining the ICRMS.

Enel’s organizational model
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 Functions are responsible for consolidating

the scenario analysis and the management of the stra-

Zero emissions ambition113

tegic and financial planning process aimed at promoting
the decarbonization of the energy mix and the electrification of energy demand, as key actions in combatingclimate change.

• The Global Business Lines are responsible for the de-velopment 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 adopt-ing sustainable criteria, including climate change, in supply chain management and developing digital solutions
that support the development of technologies enablingenergy transition and combating climate change.

• On a local level, the Regions and Countries have the taskof promoting decarbonization and guiding the energy
transition toward a low-carbon business model, within
their areas of responsibility. Furthermore, the Europe
and Euro-Mediterranean Affairs Function is responsible for defining the Group’s position on climate change,
low-carbon policies and the regulation of the international 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.

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Incentive system
The remuneration policy for 2022 provides that a significant portion of the short- and long-term variable remuneration of the Chief Executive Officer/General Manager andKey management personnel will be tied to performance
objectives concerning sustainability, including in relation
to climate change. Specifically, with regard to:• the long-term variable remuneration of the Chief Executive Officer/General Manager and Key management
personnel, for which a performance objective is set,
including, since 2018, with regard to the reduction of“Scope 1” greenhouse gas emissions by the Enel Groupover the next three years (with a weighting of 10% of thetotal long-term variable remuneration), deemed suitable
to adequately support the achievement of the climatechange-related targets in the 2022-2024 Strategic Plan;• variable short-term remuneration (MBO), the targets
can include those relating to the specific company
Function of each manager. For example, they include
objectives related to the introduction of innovative
products and services into the business for managers
within Holding Functions, the development of renewableenergy for managers within the Enel Green Power and
Thermal Generation Global Business Line or related toenergy transition solutions within the Enel X Global Retail
Business Line.
For further details, see “The Enel governance model forsustainability” section of the 2022 Sustainability Report.

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Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

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 its processes of planning, capital allocation, strategic positioning, and assessment of risks and resilience of the strategy.
For this purpose, the analysis and benchmarking of external energy transition scenarios was also carried out, which,
together with the analysis of relevant reports on macroeconomic and commodity trends was a key starting point
for defining the assumptions of Enel’s long-term energy
scenarios.
Global energy scenarios are typically classified by scenario families based on the level of climate ambition:• Business as usual/Stated policies: energy scenarios
based on business as usual/current policies. They provide a conservative benchmark for the future, representing the evolution of the energy system in the absence ofadditional climate and energy policies. Currently, thesescenarios do not achieve the goals of the Paris Agreement;• Paris Aligned: energy scenarios aligned with the Paris
Agreement, i.e., that include a goal of limiting global average temperature increase to “well below 2 °C” compared to pre-industrial levels. To achieve this goal, scenarios in this category consider new and more ambitious
policies for decarbonization, end-use electrification,and the development of renewables;• Paris Ambitious: global energy scenarios that chart thepath toward Net-Zero GHG emissions by 2050, in linewith the most ambitious goal of the Paris Agreement,
which is to stabilize the global average temperature riseat 1.5 °C, although with different ranges of probability.
This classification of scenario families was developed over
the years and was further expanded in 2021 by collaborating with a working group coordinated by the World Business Council for Sustainable Development (WBCSD), which
Enel took part in. The aim of the project was to devise acommon and transparent approach to using public scenarios for companies in the energy industry, helping themto use them in order to assess the risks and opportunities
associated with climate change, in line with the Task Forceon Climate-Related Financial Disclosures (TCFD). The end
result of this work is: (i) a report that provides context for
the energy scenarios and describes the shared definitionof the scenario families, as well as (ii) an online platformthat gathers the variables of a variety of scenarios (WBCSD,
2023, Climate Scenario Analysis Reference Approach).
Enel’s long-term 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 the generation and consumption of energy evolves in various
sectors in a specific economic, social, policy and regulatory 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 physical phenomena on the energy system, the Group relies on internal
models that describe the energy system for each country
under analysis, taking into consideration specific technological, social-economic, policy and regulatory aspects.
In 2022, with the aim of fostering global and local
cross-functional collaboration to define both physicaland energy transition scenarios, while ensuring consistent compliance with the requirements of the TCFD, twointernal cross-functional communities dedicated to both
physical and transition scenarios were established. These
were primarily intended to discuss and define context andbenchmark analyses and long-term scenario assumptions,to identify relevant impact categories, and to establish
methods for assessing them so as to define strategic andindustrial measures.

Zero emissions ambition

115

The adoption of these scenarios and their integration into
corporate processes takes account of the guidelines of
the TCFD and enables the assessment of the risks and opportunities associated with climate change. The process

1

FIVE STEPS

1

5

that translates the scenario phenomena into informationthat is useful for industrial and strategic decisions can besummarized in five steps:

Identification of trends and factors relevant to the business(e.g., electrification of consumption, heat waves, etc.)22Development of link functions connecting climate/transition scenarios and operating variables

3

Impactassessment

34

Identification of risks andopportunities

4

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

5Strategic actions: definition and implementation(e.g., capital allocation, resilience plans)

Energy transition scenarios
The energy transition scenarios detail how the generationand consumption of energy evolve in a certain geopolitical, macroeconomic, regulatory and competitive context,
depending on the available technology options; they correlate with greenhouse gas emission trends and climate
scenarios and, consequently, a specific temperature increase by the end of the century compared to pre-industrial values.
The main assumptions considered when defining transition scenarios concern:• local policies and regulatory measures to fight climatechange, increase energy security and promote sustainable development, such as measures for reducing carbon dioxide emissions and fossil fuel consumption, forincreasing energy efficiency, for consumer electrification, and the amount of renewable electricity generated;• the global macroeconomic and energy context (for example, in terms of gross domestic product, populationand commodity prices), also considering international
benchmarks;• the evolution of technologies for the generation, conversion and consumption of energy, in terms of bothtechnical operating parameters and costs.

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Sustainability Report 2022

In 2022, Enel updated its framework of medium to longterm energy transition scenarios, and defined scenario
narratives based on three main scenario “signposts”, thatis, the main drivers of uncertainty in relation to developments in the macroeconomic and energy sectors: achieving the Paris Agreement goals, the escalation of geopolitical tensions in the Russia-Ukraine conflict, and tackling theCovid-19 pandemic.
The Group’s reference scenario for long-term planning,called the Paris scenario, is therefore:• a Paris-aligned scenario, which involves achieving
the goals of the Paris Agreement, that is, a rise in the
global average temperature below 2 °C compared
to pre-industrial levels, and therefore anticipating ahigher level of climate ambition than business as usual, but without necessarily assuming that the Net-Zerotarget will be reached by 2050, considering the current level of overall ambition at a global level;• a scenario in which the geopolitical tensions heightened by the Russia-Ukraine conflict are expected tohave lasting effects, resulting in an acceleration inelectrification and renewables, as well as in a greateruse of LNG in order to raise the level of security of1Letter to stakeholders

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3

Materiality analysis

4

Our performance5

Appendix

supplies in a changed environment, especially in Europe;• a scenario marked by the expectation that Covid will
be contained or become endemic, with a high vaccination rate and no need for large-scale lockdowns.

planning, i.e. to stabilize the average global temperature
within +1.5 °C, some uncertainty clearly remains as towhether certain countries could maintain inertial trajectories, delaying the decarbonization process that willlead to net zero emissions by 2050.

As for the climate ambition in the reference scenario, it
is assumed that consumer electrification will continue
to increase and that renewables will be further developed, partly due to the energy security policies adopted(such as REPowerEU in the EU and the Inflation Reduction Act in the United States). In this scenario, globally
speaking, governments, companies, organizations andcitizens effectively participate in the collective effort tomitigate greenhouse gas emissions.
With respect to the possibility of assuming the achievement of the most challenging objective of the Paris Agreement as a benchmark scenario for long-term

Assumptions concerning commodity price trends as inputs to the Paris scenario are consistent with external
scenarios that achieve Paris Agreement goals. In particular, a sustained increase in the price of CO2, causedby the gradual reduction of permit supply in the face ofgrowing demand, and a sharp fall in coal prices, due todecreasing demand, are expected by 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, oil prices are expected to stabilize gradually, for which we estimate peakdemand around 2030.

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117

Brent ($/bbl)

API2 ($/t)
289.9

~100

98.8
~80

~68

~75

~75

~80
~65

~44

2022(1)2030

2022(1)CO2 EU - ETS (€/t)

2030

TTF (€/MWh)
~166

~ 125
~110

120.5
~100

80.8
~44
~25

2022(1)

Enel scenario

2030

Average benchmark(2)2022(1)Max benchmark

~55
~31

2030

Min benchmark(1) Actual.
(2) Sources: IEA - Sustainable Development Scenario and Net Zero Scenario; BNEF; IHS green case scenario; Enerdata green scenario. N.B. The scenarios used
as benchmarks have been published at various points throughout the year and may not be up to date with the latest market trends.

Alternative scenarios to the reference scenario were
defined depending on the degree of climate ambition
at global and local level: a “Slower Transition” scenario,
marked by a slower speed of transition, and an “Accelerated Transition” scenario, marked by an increase in ambition compared to the reference scenario, specifically withrespect to some of the characteristic variables of energy

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Sustainability Report 2022

transition, such as the rate of electrification of final energy
consumption, green hydrogen penetration or end users’
attitudes towards more sustainable consumption patterns(e.g. modal shift with regard to public/private means oftransport). These scenarios are used for sensitivity analysis
in the evaluation of investments, strategic stress tests, risk
assessment, and to identify business opportunities.

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Local transition scenarios
Enel’s reference scenario – the Paris scenario – covers all
the countries and regions in which the Group operates,
and therefore entails a climate ambition that is in line withthe achievement of the Paris Agreement goals, supported
by greater electrification of final energy consumption andthe development of renewable capacity.
Local scenarios were broken down based on two complementary approaches:• a bottom-up approach was taken in the main countries
where the Group operates by using fundamental models
to simulate the long-term balance of the entire energy
system, explicitly demanding that the country as a whole
limit its CO2 emissions. The promotion of scenario variables that are relevant to the Group’s activities (including electricity demand, rate of electrification, renewablecapacity and distributed generation capacity, the number of electric vehicles and green hydrogen generation)is thus established using dedicated models with a time
horizon up to 2050, with the aim of minimizing costs forthe system by limiting CO2 emissions;• for the other countries of interest, the main variables ofeach scenario were established by conducting statisticalanalyses of internal and consensus data, compared withexternal scenarios that are in line with the Paris Agreement goals, which were made available by accredited
national and international bodies and providers.
Internal transition scenarios were defined due to the needfor increased modeling flexibility and increased geographical and operational granularity for the main variables that
affect Enel’s various businesses compared to the scenarios
provided by the main external providers. The latter are typically outlined and made public on a global or regional level,with a few exceptions for larger countries, which only rarely
coincide with the countries in which the Group operates or
has an interest in.

Europe, focus on Italy and Spain
In the Paris scenario, emissions in European countries are
decreasing in line with the European “Fit for 55” package,as a result of increased electrification of final energy consumption, driven by an increased use of renewables in theelectricity generation mix.
Italy
In Italy, according to the Paris scenario, which is more ambitious than the existing national plan (Integrated Energy
and Climate Plan, 2020), electrification is set to increase to
30% by 2030 (from 22% in 2021), with a level of renewablegeneration sufficient to meet over 70% of electricity demand (instead of around 55% as envisaged in the nationalplan).

3

Materiality analysis

4

Our performance5

Appendix

The Slower Transition scenario is based on the assumptionthat Italy will remain firmly committed to the existing Integrated National Energy and Climate Plan as regards theambition to reduce emissions, which is a less optimistic
macroeconomic scenario than the Paris scenario, particularly in the initial years, with increased pressure when it
comes to the price and supply of fossil fuels and raw materials.
The Accelerated Transition scenario has the same ambitionof the Paris scenario when it comes to decarbonization.
This scenario assumes that authorization processes forrenewable energy generation plants will be revised more
effectively, resulting in a slight increase in the number of
installations, with the costs of technologies for green hydrogen generation falling more rapidly and its subsequent
increased penetration in hard-to-abate sectors, at theexpense of blue and gray hydrogen (hydrogen produced
from gas, respectively with and without the use of CCS
technologies). Moreover, the fact that people are becoming more concerned about climate change promotes
more “climate-aware” behavior such as a modal shift in thetransport sector (with a greater use of low-emission transport – for example, public transport).
Spain
In the case of Spain, the level of ambition established in
the national plan is in line with the achievement of theParis Agreement goals; in light of this, the Paris scenario
foresees that the electrification rate in 2030 will be of 32%(compared to 24% in 2021) and that the development of
renewable capacity will be such that the share of electricity
demand met through renewable generation will increase
to over 80% (compared to 53% in 2021). The alternative
Slower Transition scenario, instead, assumes that there will
be a delay in implementing policies for greater penetrationof renewables and electric technologies, especially in thecase of private cars. The Accelerated Transition scenario
has the same ambition of the Paris scenario and envisages
that authorization processes for renewables will be quicker. This scenario also assumes that there will be a higher
incentive for the electrification of buildings and the complete adoption of the national green hydrogen strategy,
which will make it possible to accelerate the constructionof renewable energy generation plants coupled with electrolysers by 2030.

Latin America, focus on Brazil and Chile
BrazilIn the case of Brazil, according to the Paris scenario, which
is more ambitious than the existing national plan (Plano Decenal de Expansão de Energia 2031, 2022) when it comesto reducing emissions, electrification is set to increase to
25% by 2030 (from 22% in 2021), with a level of renewable

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119

generation sufficient to meet over 88% of electricity demand (instead of around 82% as envisaged in the nationalplan).
The Slower Transition scenario is based on the assumptionof following the increasing emission trend of the existing
national plan (Plano Decenal de Expansão de Energia 2031),
with fewer hydroelectric plants being expanded in favor of
new thermal (gas) capacity and a less optimistic macroeconomic scenario than the Paris scenario, particularly in
the initial years.
The Accelerated Transition scenario increases the ambition of the Paris scenario when it comes to decarbonization, assuming that the regulatory framework for building
offshore wind plants will be more quickly defined, resulting
in increased exploitation of the potential of this technology, greater penetration of distributed solar generation,and further development of technologies for green hydrogen generation.
Chile
In the case of Chile, the Paris scenario is developed in linewith the Net-Zero scenario set out in the government

document PELP (Planificación Energética a Largo Plazo)with regard to reducing emissions, and includes ambitious
targets for the generation and export of green hydrogen.
As in the government scenario, it involves shutting down
all coal-fired power plants by 2035, increasing taxes on
CO2 emissions and achieving high levels of electrificationin transport by banning sales of conventional vehicles by
2040 and committing to full electrification of city bus
fleets from 2040 onwards.
The Slower Transition scenario is marked by a slower energy transition, centered on implementing existing measuresand policies that are less ambitious than the ones includedin the Paris scenario.
The Accelerated Transition scenario reaches net zero
emissions by 2050 and, compared to the Paris scenario,
foresees an acceleration of the electrification process inall economic sectors, including transport. It also brings
forward to 2035 the ban on conventional vehicle sales, amore ambitious target for green hydrogen exports, 100%of the electricity generation mix met by renewable sourcesby 2050, the phase-out of coal by 2030, and an additional
increase in taxes on CO2 emissions.

The physical climate scenario
Within the aforementioned framework, each scenario
narrative was developed in such a way as to ensure consistency between the energy transition scenarios and theclimate scenarios.
Climate change is playing an increasingly prominent role inthese scenarios, with impacts not only on the transition of
the economy towards Net-Zero emissions, but also physical impacts that can be divided into:• acute phenomena, that is, short-term but rather intense
phenomena, such as floods, hurricanes, etc., with potential impacts on assets (such as damage and businessinterruptions);• 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, constantchanges 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 “Inter-governmental Panel on Climate Change” (IPCC) on a global scale, the Group has chosen three that are in line withthose taken into account in the latest IPCC report as partof the sixth assessment cycle (AR6). Such scenarios areassociated 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):• SSP1-RCP 2.6: compatible with a global warming range
below 2 °C, compared with pre-industrial levels (18501900), by 2100 (the IPCC projects approximately +1.8 °C
on average over the 1850-1900 period); the Group associates the SSP1-RCP 2.6 scenario with the Paris and Accelerated Transition scenarios in analyses that take into
account both physical variables and transition variables;• SSP2-RCP 4.5: compatible with an intermediate scenario, in which an average temperature increase ofaround 2.7 °C is expected by 2100 when compared withthe 1850-1900 period. The RCP 4.5 scenario best represents the current global climate and political context
and the associated transition assumptions. This scenario projects global warming as being consistent with theestimated temperature increase that takes into accountcurrent global policies;(3) the Group associates the SSP2-(3) Climate Action Tracker thermometer, global warming estimates for 2100 considering the current “Policies & Action” and “2030 Targets Only” (updated as ofNovember 2022).

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RCP 4.5 scenario with the Slower Transition scenario
in analyses that take into account both 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-caseclimate scenario, which is used for assessing the effectsof physical phenomena in a context in which climatechange is particularly severe, but is not considered likely
at present. The RCP 2.6 scenario is used for the assessment of physical phenomena and for analyses that consider an energy transition that is in line with the mostambitious mitigation targets.
The analyses performed on the physical scenarios considered both chronic phenomena and acute phenomena. In describing specific complex events of interest,
the Group looks at data and analyses conducted by bothprivate entities and public and academic institutions.
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 ofthis collaboration, the ICTP provides projections for themain climate variables with a grid resolution that varies from approximately 12 km to approximately 100 km
on the side and a time horizon of 2020-2050. The main
variables are temperature, rainfall and snowfall, and solar radiation. With respect to previous analysis carriedout, the current studies are based on the use of multiple regional climate models: the one developed by ICTP
combined with five other simulations, selected as representative of the ensemble of climate models currently
available in the literature. The output of the ensemble
represents all the different climate models, which are3

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Appendix

averaged together. This technique is usually adopted in
the scientific community to obtain a more robust, bias-free analysis mediated by the various assumptions
that could characterize the single model.
For certain specific climate variables, such as gusts ofwind, the Group also relies on other providers specializing in the topic.
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. In addition, similarly, the Group is also analyzing climate projection data for Africa, South Asia andSouth-East Asia, so as to cover all the main countries
and regions where the Group operates globally.
The ICTP also offers scientific support when it comesto interpreting any other acquired climate data. Climate
scenarios are always used for the countries that theGroup is interested in, so that climate risk can be uniformly assessed.
Some of these phenomena involve high levels of complexity, as they do not only depend on climatic trends
but also on the specific characteristics of the territory, and require an additional modelling activity for theirhigh-resolution representation. For this reason, in addition to the climate scenarios provided by ICTP, the Groupalso uses Natural Hazard maps, which make it possible
to obtain, with a high spatial resolution, the return timesof a series of events such as storms, hurricanes andfloods. The use of these maps, as described in the section “Risks and opportunities connected with climatechange”, is widely consolidated in the Group, which already uses this data based on a historical perspective
to optimize insurance strategies. Furthermore, work isunderway in order to be able to use this information also
when processed in compliance with the projections of
the climate scenarios.

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Integration of climate scenarios
into the Open Country
Risk model
Enel has adopted a quantitative Open Country Risk
assessment model that can accurately monitor the levelof risk of countries within its scope, which includes four
elements of risk:• economic factors: measuring the economic resilienceof each country, which is defined as a balanced position
with respect to the external environment, effectivenessof domestic policies, banking and corporate systemvulnerability, attractiveness in terms of economic
growth and, ultimately, a quantification of extreme
climate events as a source of environmental andeconomic stress;• institutional and political factors: assessing thesoundness of institutions and of the political context;• social factors: a detailed analysis of social phenomena
and of human rights aimed at measuring the degree ofwell-being, inclusion and social progress;• energy factors: measuring the effectiveness of theenergy system and how it fits into the energy transition

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and into the fight against climate change, which are
crucial factors for assessing the sustainability ofinvestments over a medium to long-term period.
Therefore, this work has made it possible to also
integrate climate change aspects into the OpenCountry Risk model.
More specifically, by introducing extreme weather
events into the Open Country Risk, the evolution ofseveral climate hazards can be assessed, both in the
country and on a global scale, in a uniform manner.
In particular, a modular approach was adopted thatwill enable analyses to be progressively improved byincluding 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 andanother to drought. In addition, the possibility of
introducing other phenomena such as extreme windand rising sea levels is being looked into. Phenomena
are described with a numerical index, developed bytaking into consideration global distribution, witha resolution of approximately 100 km x 100 km andsummarized in a composite index.

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Italy
Acute phenomena: a number of acute phenomena in Italy
were analyzed, such as fire risk, extreme rainfall and heatwaves. The first two phenomena were described using
standard metrics, which are extensively used in the literature. With regard to heat waves, custom metrics were also
defined for Enel Grids, in addition to the standard metrics,
which were identified by comparing extreme phenomena
HISTORICAL

that occurred in the past and that could potentially damage underground grids.(4) The results in the RCP 2.6 scenario are shown in the figure. Therefore, the average number of days with heat waves in a year is likely to increase
compared to the past, and will be more intense in areas
currently affected by this phenomenon. Moreover, the situation is worse in the RCP 4.5 and RCP 8.5 scenarios.
RCP

2.6

Heat
waves

Days per year historical∆ days – RCP 2.6
vs historical

0�1

0�2

1�2

2�4

2�3

4�6

3�4

6�8

4�5

8 � 10Days per year by province experiencing a heat wave in the 1990-2020 period and average change in number of days in the RCP 2.6 scenario (2030-2050) withrespect to historical figure indicated on the left.

Extreme rainfall was studied by calculating the variationof daily rainfall above the 95th percentile, calculated as
average annual millimeters in the periods of reference. A
general increase in extreme rainfall can be observed in the
period 2030-2050 in all analyzed scenarios. However, thisis accompanied by a slight decrease in the annual sum of
daily precipitation, if we exclude acute rainfall. In addition,
this increase is more pronounced in Northeast Italy andalong the Tyrrhenian coast.
As already shown in the analyses previously published by
the Group, fire risk will also undergo important variations,which increase in the various climate scenarios considered. In particular, fire risk is described through the Fire
Weather Index (FWI), a widely used indicator at international level that takes into account temperature, humidity,
rain and wind in order to estimate a fire risk index. The data

provided by the FWI can be useful in characterizing fire risk
trends to support the business in managing it properly. The
studies conducted, which examine the change in projections to 2030-2050 compared to 1990-2020, show that inall scenarios there is an increase in the number of high-riskdays (index value > 45) in the summer season. This change
mainly affects the islands and the southern regions of thecountry, where the increase in extreme risk days ranges
from about +6 to +8 days compared to the historical period.
Chronic phenomena: chronic changes in temperature canbe analyzed to obtain information on the potential effects
on cooling and heating demand in local energy systems.
Similar to what was done in 2020, Heating Degree Days
(HDD) were used to measure heating requirements, that is(4) The number of average days per year for each province were calculated, under the following conditions: at least five days in a row with a minimum temperature above the 95th percentile of the historical distribution (1990-2020) and at least 18 °C. In addition, these five days must be characterized by theabsence of rain, and at least one day must have a maximum temperature above the 95th percentile of the historical distribution (1990-2020). This metric
was calculated by considering the entire country at the original resolution of the climate data (approximately 12 km x 12 km). Therefore, the high-resolution
data were aggregated according to each province, considering as a single heat wave the phenomenon occurring at the same time on several pixels within
the same province, and considering as duration the maximum width by combining the various pixels.

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the sum, extended to all days of the year with Taverage ≤ 15 °C,of the differences between the indoor temperature (Tindoor
assumed as 18 °C) and the average temperature, and the
Cooling Degree Days (CDD), which is the sum, extended to
all days of the year with Taverage ≥ 24 °C, of the differences
between the Taverage and Tindoor (assumed as 21 °C), respectively for heating and cooling requirements. Average country data were averaged over the nation, weighting eachgeographic node by population through the use of Shared
Socioeconomic Pathways associated with each RCP scenario. The figure shows the CDDs, which were calculated
across Italy at high resolution for the historical period, andthe expected average variation in the RCP 2.6 scenario. It
also shows how the distribution of population is used as abasis for calculation at a national level.(5) Generally speaking, an increase in CDDs is observed in the period 20302050, which are consistently higher than over the historicalperiod, with an increasing trend in the various scenarios
RCP 2.6 (+~45%), RCP 4.5 (+~80%) and RCP 8.5 (+~110%).
On the other hand, a reduction in heating demand is observed, which is -8% in the RCP 2.6 scenario, -12% in RCP
4.5 and -16% in RCP 8.5 compared to the 2000-2020 period.

Cooling Degree Days
(CDD)

Degree days
per year historical

Population
distribution

Δ degrees/year –RCP 2.6 vs historical

Population(thousands of people)0 � 1.5

0 � 100

200 � 400

500 � 589

0 � 2040 � 80

100 � 120

1.5 � 3.7
3.7 � 7.1
7.1 � 13
13 � 28
28 � 940.5

Cooling degree days (CDD) in the historical period (1990-2020) and expected change in the RCP 2.6 scenario. The distribution of population (1990-2020) on
the same grid as the climate models is shown on the right, whereby the most densely populated areas that have the biggest impact on the calculation of thecountry-level metric are clearly visible.

With regard to total rainfall, variations in this phenomenon
in the basins of interest for the Group’s hydroelectric generation were analyzed. Based on this analysis, in which theperiod 2030-2050 was compared with the period 1990-

2020, no significant changes emerge, with a general trendof slight decrease in Central and Southern Italy in the RCP
2.6 scenario.

(5) Please note that the population density varies in the various SSPs, while population distribution across the country is much the same.

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Spain
Acute phenomena: for Spain, the acute rainfall phenomenon was analyzed first, calculated as average annual millimeters in the periods of reference.(6) As shown in the following figure, in which the 2030-2050 period is comparedwith the historical period 1990-2020, this acute event will
be subject to variations throughout most of Spain as early

RCP
Flooding/
heavy rain

2.6

as in the RCP 2.6 scenario. In particular, heavy rainfall will increase in the north, whereas in the southeast it is expected
to decrease. The other scenarios show that there will be adecrease in heavy rainfall in the southern part of the country (in RCP 8.5 this reduction also affects the north-west).

RCP

RCP

4.5

8.5

Δ % - RCP vs historical(-16) � (-10)(-10) � (-5)(-5) � 0
0�5
5 � 1010 � 15

Percentage variation of acute rainfall in different CPRs (2030-2050) compared to the historical value (1990-2020).

With regard to fire risk, the area of Spain that will see thebiggest increase, when compared to the historical period,in the number of days per year with Fire Weather Index
greater than 45 (i.e. extreme risk) is the center-south, in
all future scenarios. This increase is greater in worst-casescenarios (RCP 8.5) than in the RCP 2.6 scenario.
Heat waves, as already highlighted in the analyses published previously by the Group, will be more geographicallywidespread and more frequent in the period 2030-2050,
especially in the southern part of the country.

Chronic phenomena: analysis of potential cooling andheating demand has been refined and updated in a similar
way to that for Italy. In terms of Heating Degree Days andCooling Degree Days, compared to the period 1990-2020,
HDDs are estimated to decrease in all scenarios in the period 2030-2050, from around -10% in RCP 2.6 to -20% in
RCP 8.5, and RCP 4.5 in the middle. The data also confirm
an increase in CDDs (+34%) in the RCP 2.6 scenario anda change of +61% and +87% in the RCP 4.5 and RCP 8.5
scenarios, respectively.

(6) Extreme rainfall is the sum of daily rainfall above the 95th percentile of the historical distribution in a specific period.

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Cooling Degree Days
(CDD)

Degree days
per year historical

Population distribution

Δ degrees/year –RCP 2.6 vs historical

Population(thousands of people)0 � 0.27

0 � 100

300 � 400

700 � 785

0 � 2060 � 80120 � 123.7

0.27 � 0.64
0.64 � 1.48
1.48 � 3.25
3.25 � 8.42
8.42 � 1,584.95

Cooling degree days (CDD) in the historical period (1990-2020) and expected change in the RCP 2.6 scenario. The distribution of population (1990-2020) on
the same grid as the climate models is shown on the right, whereby the most densely populated areas that have the biggest impact on the calculation of thecountry-level metric are clearly visible.

With regard to total rainfall, variations in this phenomenon
in the basins of interest for the Group’s hydroelectric generation were analyzed. Based on this analysis, the data do

not show appreciable variations when comparing the RCP
2.6 scenario (2030-2050) and the historical period (19902020), with a general trend of slight decrease.

Latin America
Acute phenomena: the fire risk, measured as the number of days per year with a FWI greater than 45 (extremerisk), differs from one area to another. As the figure on theleft shows, when comparing the RCP 2.6 scenario (20302050) with the historical period (1990-2020), there is anincreased number of days at high risk of fires in most partsof Brazil and in the Atacama Desert. In the rest of SouthAmerica, it stays the same or decreases a little. Interestingly, the risk of fire is particularly high in areas with the lowest

current Normalized Difference Vegetation Index (NDVI) values (as shown in the figure on the right(7)), that is, in areas
with sparse vegetation. Some areas of the Amazon, in theheart of Brazil, are an exception, as they show not only asharp increase in the number of days at risk of extreme
fire, but also high vegetation coverage. It is essential to
combine the fire risk index and vegetation, since the lattercan potentially fuel fires and increase the likelihood of fire
spreading.

(7) The map in the figure on the right shows processed NASA data on the Normalized Difference Vegetation Index from June 2021 to June 2022. The NDVI
quantifies vegetation by measuring the difference between near-infrared light (which is strongly reflected by vegetation) and red light (which is absorbed byvegetation). This is a good indicator of vegetation growth and density. The higher the NDVI, the denser and healthier the vegetation.

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Fire Weather Index

RCP 2.6

Δ days – RCP 2.6
vs historical3

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Appendix

Normalized Difference Vegetation
Index

NDVI
(2021-2022)-10 � 00 � 0.2

0 � 100.2 � 0.4

10 � 20

0.4 � 0.6

20 � 30

0.6 � 0.8

30 � 40

0.8 � 0.9

40 � 52

Variation in the number of average days per year with a FWI greater than 45 between the RCP 2.6 period (2030-2050) and the historical period (1990-2020) (left)
and the NDVI vegetation index from June 2021 - June 2022 (right).

The “Warm Spell Duration Index” (WSDI) is a standard indicator that can be used to evaluate extreme temperatures.(8) Comparing the period 2030-2050 with the period
1990-2020, the data show a significant increase in days
characterized by heat waves already in the RCP 2.6 scenario, especially in some areas of Brazil, Colombia, Peru andnorthern Chile. This increase in extreme temperatures will
be even more pronounced in worst-case scenarios (RCP
8.5).
For extreme precipitation, daily rainfall above the 95th percentile was considered, similar to what was done for Italy
and Spain. Future changes for this phenomenon are lesshomogeneous. For some areas, such as northern Brazil andnorthern Argentina, decreases compared to the historicalreference period are expected in the RCP 2.6 scenario. On
the other hand, in other areas, such as western Colombia
and parts of Brazil and Peru, heavy rainfall increases are expected.
Chronic phenomena: a study was carried out on potentialchanges in heating and cooling demand related to chronicchanges in temperature. Again, changes in Heating Degree Days and Cooling Degree Days over the period 20302050, compared to the period 1990-2020, were calculated
from data from 6 models, with a resolution of 25 km x 25
km. Average country data were averaged over the nation,weighting each geographic node by population throughthe use of Shared Socioeconomic Pathways (SSPs) associated with each RCP scenario. In each country studied,
CDDs increase progressively in all scenarios: in the RCP 2.6
scenario they increase by 35%(9) in Chile, while the increase
is between 13% and 18% in the other countries examined.
In the RCP 4.5 scenario, this increase becomes 113% for
Chile and slightly more than 25% for Argentina, Brazil andPeru, while it stands at 18% for Colombia. The increase in
CDDs with respect to the historical period is even moremarked in the RCP 8.5 scenario. With regard to HDDs, in
the RCP 2.6 scenario considerable reductions are estimated in Colombia (-52%), Brazil (-21%) and Peru (-14%), as well
as a slight decrease in Chile (-5%). This trend intensifies in
the RCP 4.5 scenario: ~-62% in Colombia, ~-27% in Brazil,~-20% in Peru and -8% in Chile.

(8) The WSDI considers heat waves characterized by at least 6 consecutive days with a maximum daily temperature above the 90th percentile of the historical
distribution.
(9) In Chile, the percentage increase is higher than in the other LATAM countries, since the absolute values of CDD are very low. In fact, historically, CDDs are very
close to zero throughout most of the country, with a few degrees Celsius annually only in the central part of the country.

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Cooling Degree Days
(CDD)

Population distribution

Degree days
per year historical

Δ degrees/year –RCP 2.6 vs historical

Population(thousands of people)0 � 1.4

0 � 500

1,500 � 2,000

3,000 � 3,038-2 � 50150 � 250

350 � 610

1.4 � 2.6
2.6 � 4.8
4.8 � 9.8
9.8 � 22.5
22.5 � 4,927.4

Cooling degree days (CDD) in the historical period (1990-2020) and expected change in the RCP 2.6 scenario. The distribution of population (1990-2020) on
the same grid as the climate models is shown on the right, whereby the most densely populated areas that have the biggest impact on the calculation of thecountry-level metric are clearly visible.

With regard to total rainfall, variations in the basins of interest for the Group’s hydroelectric generation were analyzed. Analyses comparing 2030-2050 projections in thethree scenarios to the historical period 1990-2009 show
a trend of rainfall reductions in Argentina and Colombia.
A slight increase or decrease in total rainfall is expected
for the RCP 2.6 scenario in Brazil, based on the group ofbasins in question. In contrast, in Peru, rainfall will basicallystay the same in the RCP 2.6 scenario. Ultimately, in Chile,as in Argentina and Colombia, total rainfall is expected todecrease in the lowest-emission scenario, but this decrease may have already taken place over the last few years(as it is already decreasing compared to historical levels).

North and Central America
Acute phenomena: first of all, the variation of frost days,
that is, the average number of frost days per year,(10) was
analyzed for North America and Central America in several
future scenarios (2030-2050) compared to the historicalperiod (1990-2020). As shown in the maps in the following
figure, the number of frost days will decrease mainly in thewestern part of the macro-region, with major variations interms of magnitude in worst-case RCP scenarios. It is important to stress the fact that the decrease in frequency
does not mean that the intensity of this acute phenomenon has increased, which is a topic that the Group is currently looking into.

(10) For the sake of accuracy, frost days are the number of days per year when the minimum temperature Tmin is lower than 0 °C.

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RCP

2.6

Heavy snow/
icing

3

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RCP

5

Appendix

RCP

4.5

8.5

Δ days/year - RCP vshistorical-17 � -14
-14 � -12
-12 � -10
-10 � -8
-8 � -6-6 � -4-4 � -2-2 � 1
Variation in the average number of frost days per year between the various RCP scenarios (2030-2050) and the model history (1990-2020).

With regard to heat waves, as in the case of South America, the WSDI was studied. When comparing the 20302050 period with the historical period 1990-2020, we can
expect a significant increase in the number of days characterized by heat waves as early as the RCP 2.6 scenario,
especially in Central America and along the west coast of
North America. This increase in the WSDI will be even more
pronounced in the RCP 8.5 scenario.
The number of days in a year with a high fire risk, namely
with a FWI greater than 45, is basically the same acrossmost of the macro-region in the RCP 2.6 scenario (20302050) compared to the historical period (1990-2020). In
the western part of the US and Mexico, instead, the number of high-risk days is expected to increase, becoming
increasingly higher in the worst-case scenario.

RCP
Averagetemperature

2.6

Furthermore, acute precipitation is expected to increasein nearly all of North America in the RCP 2.6 scenario compared to the historical period. It is important to highlightthe fact that the magnitude of such increases varies fromone area to another. Also in the RCP 2.6 scenario, in Central America, heavy rainfall will decrease in the central partof the region. In other areas it will remain the same or willslightly increase.
Chronic phenomena: as shown in the figure below, the average annual temperature increases in all future scenarios(2030-2050) compared to the historical period (1990-2020).
On the whole, the increases are greater in the RCP 8.5 scenario than in the RCP 2.6 one. In all RCP scenarios, the regionsthat will get warmer are the ones located in the far north.

RCP

RCP

4.5

8.5

Δ °C - RCP
vs historical
0.67 � 1
1 � 1.5
1.5 � 22 � 2.5
2.5 � 2.65

Average temperature variation between the various RCP scenarios (2030-2050) and the model history (1990-2020).

By comparing the various RCP scenarios (2030-2050) andthe model history (1990-2020), the expected total annual
rainfall tends to decrease in Central America, while in North
America it will remain the same or will increase dependingon the area.

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For further information, please read the 2022 Integrated
Annual Report.

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The strategy to tackle climate change
3-3

201-2

TCFD: Strategy

Enel’s efforts to fight against climate change are one of
the key pillars of the Group’s strategy in the short andlong term. On the one hand, Enel plays its part in driving the global energy transition towards a zero-emission model as a mitigation lever and, on the other hand,by setting up the best adaptation measures in order toadapt to changes that will eventually take place, in greateror lesser frequency and intensity.
Mitigation includes all initiatives intended to minimize
the direct and indirect impact of the Group’s activities on
climate change, that is, first and foremost, all measurestaken to reduce greenhouse gas emissions.
Adaptation, instead, includes all the initiatives that Enelintends to implement so as to make its assets more resilient, increase its capacity to react to extreme climatic
events, and come up with strategic options and businessmodels that will address various needs as the climatechanges.
In each of these two areas, there are challenges but also
opportunities that the Group is aiming to seize through its
strategy. According to Enel’s vision, adapting to climatechange also entails exploring new business opportunities
associated with the changed environment, developing
new technologies and creating value from acquired skills.

Development of new
RES capacity to have
100% renewablegeneration facilities
by 2040

RES capacity
on total

130

Exit from coal-fired
generation by 2027
and from gas-fired
generation by 2040

Medium and long-term strategy
The Group’s decarbonization strategy, combined with its
drive toward electrification, once again reaffirms its commitment to achieving zero emissions by 2040. In this respect, goals have also been set with regard to both direct
and indirect emissions throughout the Group’s value chain.
Specifically, the strategy is based on:• the decarbonization of the generation mix, by progressively developing renewable energy while ceasing to
produce electricity from thermal power sources;• the electrification of final energy consumption, by promoting new products and services for customers while
gradually exiting the business of gas sales to end consumers (to be completed by 2040);• the digitalization and upgrade of distribution network,
so as to tackle the ongoing energy transition and ensureservice quality for customers.

Exit from retail gas
sales
Transition to 100%
renewable energy
sales by 2040

2022

2030

2040

~65%

~85%

~100%

Sustainability Report 2022

The impact of climate change can also be mitigated byresearching breakthrough technologies that allow for agreener economy by design or which, for example, simply
improve performance and circularity.

Gas sold(bsmc)

Enel capex
plan fully alignedwith 2040 zero
emissions target

2022

2030

2040

10.2

~3

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Energy mix decarbonization:
Enel expects to reach about 85% of its installed capacity from renewable sources by 2030, compared to around
65% in 2022, also considering the managed and not consolidated capacity (63.3%, considering only the consolidated capacity). In addition, it promotes a gradual reduction in the share of thermoelectric capacity in its energy
mix, aiming to phase out coal-fired generation by 2027 andgas by 2040, thus achieving a 100% renewable, zero-emission energy mix by 2040.

Electrification:
Electric mobility is one of the top priorities in the field ofelectrification. Expanding the electric vehicle charging infrastructure is one of the prerequisites for achieving widespread use of electric cars and is therefore absolutely essential for the transition to zero-emission mobility. Enel X
Way shares the same goal and is currently expanding its
charging network even further, with the aim of having morethan 4 million charging points by 2030.
Another key aspect is the electrification of residential consumption, which Enel will be encouraging by promoting
heat pumps for domestic heating and induction cooktops
in kitchens, resulting in an increased electrification rate ofEnel’s customers from 17% today to around 20% in 2025
and 30% in 2030. This will allow them to reduce their totalenergy expenditure by 5% by 2025 and by around 20% by2030, as well as their carbon footprint by 2030 as a resultof a reduction in gas sales from approximately 10 bcm today to around 3 bcm in 2030, and then down to zero in
2040.

Distribution grids:
Moreover, Enel will support electrification also by investing
in infrastructure, since grids are the key enablers of theenergy transition. Out of the total amount to be invested
in grids over the next few years, an increasingly large portion will be spent on expanding the number of connections
with new users and on increasing the flexibility and capacity of the grid so that it can handle a growing share of distributed generation. Smart grids, clean energy, and energy
efficiency are accessible to Enel customers through newfeatures in each smart meter. The Group has already installed 46 million electronic meters to date and expects toreach 80 million units by 2030.

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Short-term strategy - Investment
Plan 2023-2025
The Group’s investments in 2023-2025, totaling approximately 37 billion euros, will be primarily aimed at promoting an integrated industrial supply chain to achieve sustainable electrification, which is becoming more and morenecessary in global energy systems. This will involve supplying around 90% of fixed-price sales in “core” countries(Italy, Spain, the United States, Chile, Brazil and Colombia)
with carbon-free electricity in 2025 (compared to 70% in2022), increasing generation from renewable sources toabout 75% of the total, as well as achieving a digitalization
rate of grid customers of around 80%. Specifically:• The Group intends to add around 21 GW of installed

renewable capacity (of which around 19 GW in “core”
countries) by 2025, so it is well on track to meet its decarbonization targets, in line with the Paris Agreement.
The Group intends to develop this renewable capacity
through a market-leading pipeline of around 455 GW.
Ultimately, the Group is planning to reduce installed
thermoelectric capacity by 42% in 2025 (16 GW) compared to 2022 values (27.7 GW).

• As for end customers, it plans to accelerate the provi-sion of value-added services and the implementationof a state-of-the-art infrastructure over the next three
years, in particular:– charging points for electric vehicles (from approximately 0.3 million in 2022 to approximately 1.4 million
in 2025);– behind-the-meter storage systems (from around 75
MW in 2022 to around 352 MW in 2025);– demand response (from around 8.5 GW estimated in
2022 to around 12.4 GW in 2025).

• As for the grids, the Group is planning to invest approx-

imately 15 billion euros in the 2023-2025 period, mostly in Europe (more than 80% of investments), since theGroup now has a more geographically balanced presence and the regulatory frameworks are favorable, so as
to promote the role of grids as enablers of the energy
transition and as a driving force in the fight against climate change.

By adopting the Stewardship business model, Enel will also
be mobilizing Group and third-party investments worth a
total of approximately 15 billion euros. Such resources are
instrumental in adding new generation from renewablesources, as well as a new infrastructure and services toaccelerate the electrification process for the Group’s customers.

Zero emissions ambition131

Around 94% of the Group’s total investments in 20232025 are in line with the United Nations Sustainable Development Goals (“SDGs”), directly pursuing SDGs 7 (“Affordable and clean energy”), 9 (“Industry, innovation andinfrastructure”) and 11 (“Sustainable cities and communities”), all of which are functional to SDG 13 (“Climate action”). The investments envisaged in the Group’s Strategic
Plan are in line with the decarbonization and greenhousegas reduction targets, based on a specific methodology
whereby investments made in renewables and retail pow-

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er inherently fall under SDG 7, investments in the distribution network fall under SDG 9, and investments in Enel
X are related to SDG 11. Therefore, the 94% referred toabove 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 the2023-2025 period will be aligned with the EU Taxonomy
criteria due to their substantial contribution to climatechange mitigation.

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Appendix

Risks and opportunities connectedwith climate change
3-3

201-2

TCFD: Strategy and Risk Management

The process for 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 witha quantitative analysis of the risks and opportunities 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, aGroup policy was published in 2021 that describes common
guidelines for assessing the risks and opportunities arisingfrom climate change. The “Climate change risks and opportunities” policy defines a shared approach for the integration ofclimate change and energy transition issues into the Group’s
processes and activities, thus informing industrial and strategic choices to improve business resilience and long-termsustainable value creation, consistent with the adaptation andmitigation 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 consequentdevelopment of scenarios to be considered and developed through analysis and processing of data from internaland external sources. Functions can be developed for thephenomena identified that link the scenarios (e.g. data on
the change in renewables) to business operations (e.g. thechange 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 whichthese are integrated (e.g. design of new constructions oroperational performance appraisal, etc.);• operational and strategic actions. Information from previous activities is integrated into processes, informing Groupdecisions and business activities. Examples of activities andprocesses 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 engineering and business development activities.
In order to identify the main types of risk and opportunity and their impact on the business associated with themin a structured manner consistent with the TCFD, we haveadopted a framework that explicitly represents the main
relationships between scenario variables and types of risk
and opportunity, specifying the strategic and operation-

al approaches to managing them, comprising 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 physical risks are divided into acute (or extreme events)
and chronic: the former are linked to extremely intense
weather-climatic conditions, while the latter are linked togradual and enduring changes in climatic conditions.
Extreme events expose the Group to: potential unavailability of assets and infrastructure for longer or shorter periods of time, service restoration costs, inconvenience forcustomers, etc. Chronic changes in climatic conditions,on the other hand, expose the Group to other risks or opportunities: for example, structural temperature changes can impact electricity demand and affect generation,
while changes in rainfall or wind patterns could impact
the Group’s business in terms of lower or higher output.
Generally speaking, adapting to the changes that will most
likely take place in the future also leads to efforts in innovation and strategic positioning: it may be possible to develop new businesses and better products in order to live
sustainably in a changed environment.
With regard to the energy transition process, marked bya progressive reduction in CO2 emissions, there are risks
and opportunities associated with the changing regulatory and legislative context, with trends in technological andcompetitive development, with electrification and behavior, and with the resulting market trends.
In line with the climate and transition scenarios that Enelhas used to define risks and opportunities, it appears thatthe main phenomena related to the transition are now becoming evident depending on the behavior adopted bycustomers, the industrial strategies adopted by various
sectors of the economy and regulatory policies, including fiscal policies. By the year 2030, transition trends will
be observable as the context evolves: the Enel Group has
decided to lead and pave the way for the transition, andis prepared to seize any associated opportunities. As previously mentioned, strategic choices that focus strongly
on energy transition, with more than 90% of investments
being dedicated to improving some of the SDGs, make itpossible to adopt risk mitigation “by design” and to maximize opportunities by maintaining a position that takes
into consideration the identified medium and long-term
phenomena. Strategic choices go hand in hand with theoperational best practices implemented by the Group.

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133

Framework of main risks and opportunities
Scenario
phenomena

Acute physical

Chronic
physicalTransition

Transition

Time horizon

Starting withshort term
(1-3 years)

Starting withlong term(2030-2050)

Starting withshort term
(1-3 years)

Starting withmedium term
(2022-2030)

Starting withmedium term
(2022-2030)

Risk &
opportunity
driver

134

Management
approach

Extreme events

The Group adopts best practices to manage
the restoration of service as quickly as possible.
We also work to implement investments inresilience (e.g., the Italian case). With regard torisk assessment in insurance, the Group has a loss
Risk: especially extreme weather/climate
prevention program for property risk that also
events, which can damage assets andassesses the main exposures to natural events,
interrupt operations.
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.

MarketRisk/opportunity: increase or decreasein electricity demand under influenceof temperature, whose variations
can impact the business. Increase or
decrease in renewables output, which
may be affected by structural changes inresource availability.

Policy &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
to maximize the benefits of our integrated
Risk/opportunity: policies on CO2
position in the core countries and leveraging
prices and emissions, energy transition
stewardship activities, which enables us to exploit
incentives and policies, revision of market the opportunities connected with the energy
design and permitting procedures, andtransition. The Group is also actively contributing
resilience regulation.
to the formation of public policies through its
advocacy efforts. These activities are conductedwithin platforms for dialogue with stakeholders
that explore ambitious national decarbonization
scenarios in the various countries in which Enel
operates.

MarketRisk/opportunity: changes in theprices of commodities and energy,
evolution of energy mix, changes in retailconsumption, changes in competitiveenvironment.

Product andServices

Transition
Starting withmedium term
(2022-2030)

Description

Technology

Sustainability Report 2022

Opportunity: increase in margins andgreater scope for investment as aconsequence of the transition in termsof greater penetration of electricalmobility, distributed generation and newtechnologies for the direct and indirectelectrification of final consumption.

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 plants andlong-term climate scenarios to identify any chronicchanges in renewable source availability.

The Group is maximizing opportunities byadopting a strategy founded on the energy
transition, focusing on the electrification ofenergy consumption and the development of
renewables and a geographical positioning incountries in which we have an integrated presence.
Considering alternative transition scenarios, theGroup assesses the impact of different commodity
price trends, changes in the share of renewables in
the generation mix and the electrification of final
consumption.
The Group is maximizing opportunities thanks to its
strong positioning in new businesses and beyondcommodity 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 global grids. With the penetration of direct andindirect electrification technologies, considering
alternative scenarios, the Group assesses thepotential opportunities for scaling existing andpotential businesses and for the development of
new solutions linked to digitalization and resilienceof power grids.

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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 over three time horizons: the short-medium term (1-3 years), in which sensitivity analyses based on
the Strategic Plan presented to investors in 2022 can be
performed; medium-term (until 2029), in which it is possible to assess the effects of the energy transition; and longterm (2030-2050), in which chronic structural changes in
the climate should begin to emerge.

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Appendix

The following will describe the main sources of risks andopportunities identified, operational best practices for
managing weather and climate phenomena, and qualitative and quantitative impact assessments conducted todate. All of the above activities are performed throughout
the year through an ongoing effort to analyze, evaluate
and manage the information processed. As TCFD states,
the process of disclosing risks and opportunities related toclimate change will be gradual and incremental from year
to year.

Transition phenomena: business effects,
risks and opportunities
As regards the risks and opportunities associated withtransition variables, we consider the different reference
scenarios in combination with the elements that make up
the risk identification process (e.g. competitive context,
long-term vision of the industry, materiality analysis, technological evolution etc.) to identify the drivers of potential
risks and opportunities, with priority on events with greater
relevancy. The main identified risks and opportunities aredescribed below.

Policy and Regulation• Limits on emissions and carbon pricing: the enactmentof laws and regulations that introduce more stringent
emissions limits by government action (non-market driven) and market-based mechanisms.
– Opportunities: Command & Control regulations andmarket-based mechanisms strengthening CO2 pricesignals to foster investment in carbon-free technologies.
– Risks: lack of a coordinated approach among thevarious actors and policy-makers involved and limited effectiveness of the policy instruments deployed,with an impact on the speed of the trend toward electrification and decarbonization in the various sectors,
compared with a decisive group strategy focused on
the energy transition.

• Policies and regulation to accelerate the energy transition and energy security: introducing policies, regulatory frameworks and market design revisions that promote
the energy transition, consequently guiding the energy
system toward the use of renewable energy sources as

the mainstream approach in the energy mixes of countries, greater consumer electrification, energy efficiency,
flexibility of the electrical system and upgrading of infrastructure.
– Opportunities: creating a more favorable framework
for investing in renewables, also through the development of long-term markets (PPAs, CfDs), electrical
technologies and distribution networks in line with
the Group’s strategy.
– Risks: lengthy administrative authorization processes
and ineffective market design and regulatory frameworks in core countries can lead to reduced asset
profitability and limited opportunities for growth.

• Resilience regulation and adaptation: improvement ofstandards or introduction of ad hoc mechanisms to regulate investments in resilience in the context of the evolution of climate change.
– Opportunities: benefits from investments that reduce
service quality and continuity risks for the community.
– Risks: in the case of especially severe extreme eventswith a greater-than-expected impact, there is a riskof failure to recover within an adequate timeframeand consequently a risk to Enel’s reputation.

• Financial measures for the energy transition: develop-

ing policies and financial instruments that promote theenergy transition, which should be capable of supporting an investment framework and a long-term, credibleand stable positioning of policy-makers. Introduction ofrules and/or public and private financial instruments (e.g.
funds, mechanisms, taxonomies, benchmarks) aimed at
integrating sustainability into financial markets and public finance instruments.

Zero emissions ambition135

– Opportunities: the creation of new markets and sus-

tainable finance products consistent with the investment framework, activating greater public resources
for decarbonization and access to financial resourcesin line with energy transition objectives and the related impact on costs and on finance charges; introduction of subsidized support tools (funds and calls) for
the transition.
– Risks: actions and instruments not sufficient to provide incentives consistent with an overall positioning tailored to the energy transition, uncertainty or
slowdown in the introduction of new instruments andrules due to the deterioration in finances.

Market• Commodity price dynamics: changes in market dynam-

ics, such as those relating to commodity price volatility,
may influence the behavior of traders, policy makers andcustomers.
– Opportunities: accelerating clean electrification asa solution for cutting energy costs and limiting exposure to commodity volatility. Customers are more
likely to switch from conventional fossil-fuel technologies to efficient electrical technologies.
– Risks: a “disorderly” energy transition due to the introduction of potentially distortive measures.
• Market dynamics: end users are more likely to choose
more sustainable technologies as they are more awareof climate change risks and due to greater regulatory
pressure.
– Opportunities: positive effects associated with thegrowth in electricity demand and the greater room
for renewables, also thanks to an increased demand
for long-term contracts (PPAs).

Technology• Technology penetration to support the transition: grad-

ual penetration of new technologies such as storage,
demand response and green hydrogen; digital lever fortransforming operating models and “platform” businessmodels.
– Opportunities: investments in the development oftechnology solutions, as well as positive impacts fromincreased electricity demand and increased room forrenewables from green hydrogen generation.
– Risks: slowdowns and interruptions to the raw materials supply chain, including metals for batteries (such136

Sustainability Report 2022

as lithium, nickel and cobalt) and semiconductors,
could lead to delays in procurement and/or increased
costs, such as to slow down the penetration of renewables, storage and electric vehicles.

Products and services• Electrification of residential consumption and indus-

trial processes: with the gradual electrification of end
uses, the penetration of products with lower costs and asmaller impact in terms of residential emissions will expand (for example, the use of heat pumps for heating
and cooling).
– Opportunities: increase in electrical consumption in
the context of reducing energy consumption, thanks
to the improved efficiency of the electric carrier. More
opportunities to provide beyond commodity services
and the chance of reducing the energy expenditureand carbon footprint of customers. Increasing investment in networks to drive consumer electrification.
– Risks: additional competition in this market segment.
This phenomenon depends on whether electricity
networks are well developed, which is crucial for ensuring increasing load levels and service continuity.

• Electric mobility: use of more efficient and effectivemodes of transportation from the point of view of climate change, with a special focus on the developmentof electric mobility and charging infrastructure; electrification of large-scale industrial consumers.
– Opportunities: positive effects of the increase inelectricity demand and greater margins connectedwith the penetration of electric transportation andthe relative beyond commodity services.
– Risks: additional competition in this market segment.

The Group has already implemented strategic actions to
mitigate the potential risks and exploit the opportunities
associated with transition variables. Shared long-termvalue can be created through an industrial and financial
strategy that incorporates ESG factors, with an integrated
approach focusing on sustainability and innovation.
The strategy focusing on full decarbonization and energy
transition enables the Group to be resilient to risks resulting from the introduction of more ambitious policies for
reducing emissions. It also maximizes opportunities fordeveloping renewable generation, infrastructure and enabling technologies, partly through geographic positioningin countries with an integrated presence and by promoting
stewardship activities.

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To quantify the risks and opportunities deriving fromthe energy transition in the long term, two transition
scenarios, described in the paragraph “Energy transition scenarios”. The effects of Slower Transition and
Accelerated Transition scenarios have therefore been
identified on the variables that can have the greatest
impact on the business, in particular electricity demand,
influenced by the dynamics of consumer electrification,and therefore of penetration of electrical technologies
and the electricity generation mix. These considerations
offer a basis for determining the Group’s strategic positioning in terms of resource allocation.
Enel’s reference scenario – the Paris scenario – entails a
growing ambition in terms of decarbonization and energy efficiency, supported by greater electrification of final energy consumption and the development of renewable capacity. The dynamics related to the energy transition will bring increasing opportunities to the Group.
In particular, in the retail electricity market, progressive
electrification of final energy consumption – especiallyfor transport and the residential sector – will lead to aconsiderable increase in electrical consumption to thedetriment of other, more high-emissions energy carriers. Similarly, the gradual increase in the proportion ofrenewable energy in the energy mix is expected to leadto a reduction in the wholesale price of electricity in themedium to long term. However, this impact is limited,
given that the market design based on the system marginal price is unchanged in the medium term. Possible
alternative market structures could induce different effects.
In reference to the economic impacts that may result
from the change in the transition scenarios, the Grouphas performed some analyses regarding impacts interms of EBITDA that the Slower Transition and Accelerated Transition scenarios would bring to the 2030 results compared to the baseline Paris scenario.

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Appendix

With reference to consumer electrification, the Slower
Transition scenario encompasses lower penetration ratesof the most efficient electrical technologies, in particularelectric cars and heat pumps, causing a decrease in electricity demand compared to the Paris scenario, which isestimated to cause limited impacts on the Retail commodity business & beyond. At the same time, lower electricity
demand results in less development space for renewablecapacity, with impacts on the generation business.
With reference to the Accelerated scenario, a more rapid
reduction in the cost of green hydrogen generation technologies is assumed. This results in a higher penetrationof this energy carrier, at the expense of blue and gray hydrogen, with a consequent additional effect on domestic
electricity demand and renewable capacity installations
compared to the Paris scenario.
For the different countries and regions, all scenarios, but toa greater extent the Paris and Accelerated scenarios, will
involve a considerable increase in the complexities that will
have to be managed by the grids. A significant increase is
expected in fact 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 electrification of consumption and the introduction of new actors with new methodsof consumption. This context will involve a decentralizationof 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.

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137

Time horizon

UpsideDownside

Short (2022-2024)
Medium (until 2030)
Long (2030-2050)

Quantification - range
Category

MarketProducts andServices

Time horizon

MediumMediumMain drivers

Electrification
trend and unit
consumption

Green hydrogendevelopment
scenarios

Scenario< €100mn€100-300mn> €300mn

Mitigation
Actions

Accelerated: increase in average
unit consumption thanks to greater
electrification. It already includes effects
connected with greater efficiency. Positive
impact from increased revenues, partly
offset by rise in sourcing costs
Slower: decrease in average unit
consumption as a result of reduced
electrification. Negative impact linked
to decrease in revenues, partly offset by
decline in sourcing costs

Adoption of
measures toincrease CB in order
to offset negative
margins

Accelerated: impacts connected toincreased volumes associated with an
expansion of indirect penetration ofelectrification through green hydrogen(with potential increase in growth
capacity)
Slower: impacts connected to decreased
volumes associated with reduction inindirect penetration of electrification
through green hydrogen

Products andServices

MediumDevelopment ofelectric mobility/
photovoltaics

Accelerated: change in margins as afunction of greater penetration of EV anddistributed generation
Slower: change in margins as a functionof decreased penetration of EV anddistributed generation

Note: The estimated transition impacts are based on current coverage levels.

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Mitigation in
strategy of offering"packages" ofservices

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Appendix

Physical phenomena: identification,assessment and managementof risks and opportunities
Chronic physical risks
The climate scenarios jointly developed with the International Centre for Theoretical Physics in Trieste, Italy, do
not show any certainty of structural changes before 2030,
while some structural changes may begin to take place
between 2030 and 2050. Basically, even though weatherchanges are being recorded, which are often significant,it is nevertheless difficult to determine in the short term
whether certain phenomena are changing structurally, thatis, whether average reference values are already changing.
This can be established in the long run with probability intervals.
The main impacts of chronic physical changes can produce similar effects on the following variables:• electricity demand: variation in the average tempera-ture level with a potential increase or reduction in electricity demand;• thermal generation: variation in the level and averagetemperatures of the oceans and rivers, with effects onthermal generation;• hydroelectric generation: variation in the average levelof rainfall and snowfall and temperatures with a potential
increase and/or reduction in hydroelectric generation;• solar generation: variation in the average level of solar
radiation, temperature and rainfall with a potential increase or reduction in solar generation;• wind generation: variation in the average wind level witha potential increase or reduction in wind generation.
The Group is working to estimate the relationships between changes in physical variables and the change in thepotential output of individual plants in the different categories of generation technology.
As part of the assessment of the effects of long-term climate change, chronic events relevant to each technology
were identified and analyses of their impacts on manufacturability were initiated.

Priority

Event

Rain/
snow

Wind

Solar radiation

High

Low

Not relevant

Sea levelAirtemperatureRiver/sea
temperature

Thermal
Solar
Wind
Hydro
StorageGeothermal
Enel Grids
Enel X
Global Retail

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The initial scenario analysis has shown that chronic structural changes in the recent trends of physical variables
will begin to occur in a considerable manner starting from
2030. However, in order to obtain an indicative estimateof the potential impacts, and include the possibility of theearly onset of chronic effects, it is possible to test sensitivity of the Industrial Plan to the factors potentially influenced
by the physical scenario, regardless of any direct relationship with climate variables. The existing Industrial Plan was
created based on the information contained in the average
scenarios for chronic phenomena, so that the possible effects of trends in climatic variables could also be taken into
consideration.

Analyses of the impact of chronic climatechange on renewable generation
A number of ad hoc functions were created for each renewable technology (wind, solar and hydroelectric) andplant in order to calculate the impact of the chronic effects
of climate change on the generation of our assets. For
each variation in climate variables (such as temperature,radiation, wind speed and rainfall), these functions associate likely changes in the electrical output of the plants in
our portfolio.
The first step in calibrating these “link” functions was touse the historical data of the weather-climate variables
and the internal references of the observed energy output
of our plant fleet. This allowed us to obtain “link” functions
that meet the specific characteristics of each renewable
plant and technology.
As a result, we were able to study the chronic climate impacts for possible future forecasts of climate variables(RCP 2.6, 4.5 and 8.5 scenarios).
In addition to chronic phenomena involving average structural changes, it is also important to study the volatility
that is characteristic of weather and, consequently, more
short-term. Information obtained from the ranges of variation of chronic trends predicted by climate scenarios was
taken as input for strategic planning, as was the historicalvolatility of meteorological data by analyzing variations inelectricity generation (TWh) over the last 10 years.
Weather and climate fluctuations can lead to adjustments,
since the output of power plants feeds sourcing for selling energy to customers. This means that reductions in
the amount of energy used for renewable generation may
lead to sourcing imbalances, which may result in missing

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volumes being purchased on the market in order to drive
the business strategy. On the other hand, increased generation from renewable sources may lead to reduced purchases of volumes on the market (or even more sales).
Based on the analyses conducted at each plant, whichwere then aggregated, it was calculated that, on average,hydroelectric generation may slightly decrease in the future (with substantial differences between sites), with average variations at country level ranging between -1% and-5% in the 2030-2050 period in the RCP 2.6 scenario compared to historical values. The average changes in wind
power output will largely depend on the location of theassets, with minor variations that can be either positive or
negative. Ultimately, the effects for solar technology will bemostly positive, with average increases at a country level of
up to 3% in the 2030-2050 period in the RCP 2.6 scenario. Such effects, aggregated at portfolio level, highlight thefact that the geographical and technological diversification plays a role in balancing the different variations.

Acute physical risks
With regard to acute physical phenomena (extreme
events), their intensity and frequency can cause significant
and unexpected physical damage to assets and generate
negative externalities associated with the interruption ofservice.
Within the scope of scenarios regarding climate change,
the acute physical component continues playing an extremely important role when defining the risks to which
the Group is exposed, both due to the wide geographicaldiversification of its asset portfolio and due to the primary importance of the renewable natural resources for thegeneration of electricity.
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.
Hence, for the reasons described above, the Group is currently managing the risk deriving from extreme events inthe short term. At the same time, it is extending its methodology also to longer time periods (until 2050) according
to the identified climate change scenarios (RCP 8.5, 4.5
and 2.6).

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Methodology for evaluating the risk ofextreme events
In order to quantify the risk deriving from extreme events,
the Group refers to a consolidated methodology for analyzing the catastrophic risk used in the insurance sector
and in IPCC reports.(11) Through its own insurance business
units and the captive insurance company Enel Insurance
NV, the Group is managing the various phases connected
to risks deriving from natural catastrophes: from the assessment and quantification to the corresponding coverages to minimize the impacts. The methodology applies
to all extreme events that can be analyzed, such as windstorms, heat waves, tropical cyclones, floods, etc. In all ofthese types of natural catastrophes, however, three independent factors can be identified that are summarized
below.

• The probability of the event (“hazard”), that is, its theo-

retical frequency over a specific period of time: the “return time”. In other words, a catastrophic event that has areturn time of 250 years, for example, implies that it canbe associated with a probability of 0.4% that it will occur
in a year. This information, which is necessary for assessing the frequency of the event, is then associated with
its geographical distribution with respect to the various
areas where portfolio assets are located.

• Therefore, for this purpose, the Group uses “hazard

maps” which associate, for the various types of natural
catastrophes, each geographical points on the global
map with the corresponding estimate of the frequency associated with the extreme event. This information,
which is organized in geo-referenced databases, is provided by global reinsurance companies, meteorologicalconsultancy companies or academic institutions.

Time horizon
Short term (1-3 years)

Long term (at 2050 and/or 2100)

Hazard3

Materiality analysis

4

Our performance5

Appendix• The vulnerability, that, in percentage terms, indicates

how much value is lost and/or damaged upon occurrence of the catastrophic event. In more specific terms,
therefore, it is possible to refer to the damage to the material assets the impact on the continuity of generation
and/or distribution of electricity, and also the provisionof the electric services offered to the end user.

• The Group creates and promotes specific vulnerability

analyses, especially in the case of damage to its assets,
related to every technology in its portfolio: solar, windand hydroelectric power plants, transmission and distribution networks, primary and secondary substations,etc. These analyses are then, of course, focused on theextreme events that have greater impact on the various
types of technology: as a result, this defines a matrix thatassociates the individual natural catastrophic eventswith the corresponding type of asset that is impacted ina considerable manner.

• The exposure, which is the set of economic values in

the Group portfolio that can be considerably impacted
by the occurrence of natural catastrophic events. Also inthis case, the scopes of the analyses are specific to thevarious generation technologies, for network assets andfor the services to the end user.

The combination of the three factors described above(hazard, vulnerability and exposure) provide the fundamental element for assessing the risk deriving from extreme events. From this point of view, the Group differentiates the risk analysis with respect to the climate change
scenarios, depending on the specific nature of the various
associated time periods. The following table summarizes
the scheme adopted for the evaluation of impacts derivingfrom acute physical phenomena.
Vulnerability

Exposure

Hazard maps based on historical data Vulnerability, being relatedGroup values in the short term
and meteorological models
to the type of extreme
event, to the specifics ofthe damage type and to thetechnical requirements of the
Hazard maps and specific studies for technology under consideration, Long-term evolution of Groupdifferent IPCC RCP climate scenarios Vulnerability is essentiallyvaluesindependent of time horizons(11) L. Wilson, “Industrial Safety and Risk Management”. University of Alberta Press.
T. Bernold. “Industrial Risk Management”. Elsevier Science Ltd.
Kumamoto, H. and Henley, E. J., 1996, Probabilistic Risk Assessment And Management For Engineers And Scientists, IEEE Press, ISBN 0-7803100-47.
Nasim Uddin, Alfredo H.S. Ang. (eds.), 2012, Quantitative risk assessment (QRA) for natural hazards, American Society of Civil Engineers CDRM Monographno. 5
UNISDR, 2011. Global Assessment Report on Disaster Risk Reduction: Revealing Risk, Redefining Development. United Nations International Strategy for
Disaster Reduction. Geneva, Switzerland.
Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation - A Special Report of Working Groups I-II of the Intergovernmental Panel on Climate Change (IPCC). Cambridge University Press, Cambridge, UK, and New York, NY, USA.

Zero emissions ambition

141

In the case of the vulnerability of assets within the portfolio, a table for the prioritization of the impacts of the main
extreme events on the different technologies has been

defined in collaboration with the Group’s relevant Global
Business Lines:
Priority
High

Event

Heat
waves

Flooding/
heavy
precipitation

Heavy snow/
icing

Hail

Low

Windstorm

Not relevant

Wildfire

Lightning

ThermalUnderassessment

Solar

Under
assessment

Wind

Under
assessment

Hydro
StorageUnderassessment

Geothermal

Underassessment

Enel Grids
Under
assessment

Enel X
Global RetailManagement of risks from short-term
extreme events
Over the short term (1-3 years) the Group, in addition towhat was illustrated above in terms of risk assessment
and quantification, will implement actions targeted toward
reducing the impacts on business due to extreme catastrophic events. It is possible to distinguish two main typesof actions: defining an effective insurance coverage andthe various climate change adaptation activities related topreventing damage that could result from extreme events.
The main components of these actions are described
below and, in the case of activities related to preventing
and mitigating the damage, specific reference is made to
the Group’s Generation and Infrastructure and Networks
Global Business Lines.

Impacts of acute physical events on theGroup
The Enel Group has a well-diversified portfolio in terms oftechnologies, country and regional distribution and asset
size. Consequently, the exposure of the portfolio to naturalrisks is also diversified. The Group implements various risk

142

Sustainability Report 2022

mitigation measures which, as will be described below, include both insurance coverage and other managerial andoperational actions aimed at further reducing the Company’s risk profile.
Indeed, empirical evidence shows negligible repercussionsof such risks, as demonstrated by data for the last 5 years.
Considering the most relevant events, defined as thosewith a gross impact >10 million euros, the cumulative valueof the gross impact amounts to ~130 million euros, which
represents less than 0.06% of the Group’s insured values
as of 2022, or ~224 billion euros, most of which are recovered through insurance payouts.

Enel Group insurances
Every year, the Group defines global insurance programsfor its business in the various countries where it operates.
The two main programs, in terms of scope of coverage andvolumes, are as follows:• the Property Program (“Property Damage and Business
Interruption Insurance Program”) for material damage
that can be caused to the assets and the resulting interruption in business. Therefore, in addition to the cost for
the new reconstruction of the asset (or its parts), also theeconomic losses due to their shutdown in terms of gen-1

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We empower sustainable progress

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Materiality analysis

eration and/or distribution of electricity are also remunerated according to the limits and conditions definedin the policies;• the Liability Program (“General & Environmental Liability
Insurance Program”), which covers third party damage
following the impacts that extreme events can have on
the assets and on the Group’s business.
Starting from an effective assessment of the risk, suitable
limits and insurance conditions can be defined in the insurance policies and this also applies in the case of natural
extreme events related to climate change. In fact, in this latter case, the impacts on business can be considerable but,
as shown in cases that occurred in the past and in various
areas around the world, the Group has shown absolute resilience thanks to the wide insurance coverage limits, which
are also the result of a solid reinsurance structure, as regards the Group’s captive company Enel Insurance NV.
In this context of effective insurance coverage, the measures implemented by the Group with regard to the preventive maintenance of electricity generation and network
assets are equally important. In fact, while the effects ofsuch activities are directly reflected in the mitigation of the
impacts of extreme events, they are also an essential prerequisite for optimizing risk financing and for minimizing– compared to the insurance market – the costs of global
hedging programs, including the risk associated with natural catastrophic events. This adaptive strategy consists ofmanagerial strategies and actions, not only related to insurance, which change according to boundary conditions;for instance, the Group was able to substantially reverse
the sharp upward trend in premiums in insurance markets
by modifying its risk retention policies for assets and by4

Our performance

Appendix

implementing internal risk transfer policies that reward
better performing Business Lines when it comes to risk
mitigation. From this perspective, the method and information extracted from ex-post event analyses play a crucial role in defining processes and practices for mitigating
similar events in the future.
As part of the Property Program, Enel Insurance NV envisages a Premium Refund program for Business Lines related
to the loss ratio and the achievement of the Group’s SDG
goals, thereby contributing to the virtuous circle linked to
the Group’s adaptation to the challenges posed by climatechange.
For further information, please read the 2022 Integrated
Annual Report.

Enel’s resilience and adaptation to climatechange
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 that provide not only high-level indications (such as country risk indices that can be compared with each other), which makeit possible to study physical impacts at an individual site.
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.

Scenario integration

Prioritization

High level (e.g., Open Country Risk,
evolution of energy system)

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

Site specific (e.g., high resolution
climate data)

5

Vulnerability assessment

Adaptation plans

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

Development of long-term
adaptation plans to increase
resilience

Zero emissions ambition

143

CLIMATE

ADAPTATION:
a climate-proof future

Mario Ciancarini
Group Climate Scenarios, Climate
Change Adaptation Strategy –AFC Group Strategy

Climate Risk Index

S

ince 2018, the Group has been working with
the International Center for Theoretical Physics
in Trieste to define climate scenarios for the
next 30 years and even longer. Since then, we havecontinued to develop instruments and skills in order tomanage, understand and apply a huge amount of data.
We now provide the Group with global climate analyses,
which are based on data gathered both independently
by the scientific community and through partnerships
with academic and private institutions and innovation
challenges. These analyses look at three different climate
scenarios that cover all possible futures.
A project to define a Climate Change Adaptation Plan
was launched in 2022, involving staff departments andbusiness lines, with the aim of translating the study ofcomplex physical phenomena and asset vulnerability
into tangible actions. The goal is to increase businessresilience, enhancing responsiveness to adverse events

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We are building a
climate-proof company,
combining mitigation efforts
with the ability to understandchange and deliver solutions
aimed at maintaining
profitability and promoting
resilient growth models forthe benefit of all stakeholders.
“Adaptation to climate change is only possible
by taking a multidisciplinary approach. At Group
Strategy, we work together and exchange views withclimate change experts in order to translate the latest
knowledge into useful information for the Group.
Along with all business lines, we apply instruments andexpertise so that we can develop solutions that will
increase our resilience, our ability to deal with adverse
events and to design products and services that
support stakeholders’ adaptation.”and seizing opportunities by creating products andservices that will benefit customers and all stakeholders.
Besides using high-resolution data and carrying out
detailed analyses of individual assets, the approach that
was adopted enables global climate risk to be assessed bycomparing the evolution of several extreme events in the
different countries.
For example, one of several results achieved incollaboration with EGP was the calculation of
the expected variation in renewable output fromhydroelectric, wind and solar plants between 2030 and
2050. A further example is the study, conducted with
Enel Grids, which has estimated that breakdowns could
potentially increase as a result of increased heat waves in
Italy between 2030 and 2050. These works will continue
by incorporating more and more Adaptation into all of theGroup’s processes so that, by working together, we canbuild a climate-proof future.

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Materiality analysis

Adaptation activities
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 toadverse events (Response Management) and to increasebusiness resilience (Resiliency Measures), consequently
reducing the risk of adverse events having a negative impact in the future. Moreover, the Group will use the expertise and instruments developed to analyze the effects ofclimate change in order to create value by devising new
business options aimed at offering solutions that will makethe adaptation process easier for communities and all
stakeholders.
Adaptation solutions may concern both actions implemented in short-term and long-term decision making,4

Our performance5

Appendixsuch as the planning of investments in response to climate
phenomena. Adaptation activities also include procedures,
policies and best practices.
For new investments, action can also be taken early in thedesign and construction phase to reduce the impact ofclimate risks by design, for example by taking into consideration climate scenarios and analyses of the vulnerabilityof assets to specific phenomena 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. Several activities are described in greater
detail below.

Business Lines

A. Resiliency Measures - Enhancing asset resilience

B. Response Management - Adverse event management

Enel Green Power and
Thermal Generation

Existing assets
1. Guidelines for hydraulic risk assessment and design
2. Lessons-learned feedback from O&M to E&C and BD

Existing assets
1. Critical incident and event management
2. Site-specific emergency management plans andprocedures
3. Specific tools for forecasting imminent extreme
eventsNew construction
In addition to actions for existing assets:
1. Climate change risk assessments (CCRA) included inenvironmental impact documentation (pilot)

Enel Grids

Existing assets and new construction
1. Guidelines for developing grid resilience enhancement
plans (e.g., the “Network Resilience Enhancement Plan” ofe-distribuzione)

Existing assets
1. Strategies and guidelines for Risk Prevention,
Readiness, Response and Recovery actions for the
distribution grid
2. Global guidelines for emergency and critical event
management
3. Risk prevention and preparation measures for fires
involving electrical installations (lines, transformers,
etc.)

Enel X Global Retail

Existing assets
1. Preliminary analysis of the impacts of medium/long-termclimate change

Existing assets
1. Enel X Critical Event Management

Generation assets resilience
With regard to generation, over time the Group has carriedout targeted actions on specific sites and established ad hoc
management activities and processes.
Actions on specific sites in recent years include, for example:• improving cooling water management systems for certain plants in order to counter the problems caused by
the decline in water levels in rivers, such as the Po in Italy.
• installing fogging systems to improve the flow of inlet air
and offset the reduction in power output caused by theincrease in ambient temperature in CCGTs.

• installing drainage pumps, raising embankments, peri-

odic cleaning of canals and interventions to consolidate
land adjacent to plants to prevent landslides in order tomitigate flood risks.
• periodic site-specific reassessment for the hydroelectric plants for flood scenarios using numeric simulations.
The processed scenarios are managed with mitigation
actions and through interventions on the civil works,
dams and intake systems.

Zero emissions ambition

145

The Group adopts several best practices to properly manage the impact of weather events on electricity generation, such as:• weather forecasting both to monitor renewable resource availability and detect extreme events, with warning systems to ensure the protection of people and assets;• hydrological simulations, territory surveys (also using
drones), monitoring of possible vulnerabilities using
digital GIS systems (Geographic Information System) andsatellite measurements;• advanced monitoring of more than 100,000 parameters (with more than 160 million historical measurements) detected on dams and hydroelectric civil works;• real-time remote monitoring of power plants;• safe rooms in areas exposed to tornadoes and hurricanes, such as wind plants in Oklahoma, USA;• adoption of specific guidelines for carrying out hydrological and hydraulic studies that are targeted, from thefirst development phases, toward assessing risks inside
the plant and toward the external areas of the plant, withthe application of the principle of hydraulic invarianceduring the design of the draining and mitigation works;• check of potential climatic trends for the main projectparameters in order to keep the dimensioning of thesystems into account for relevant projects (for example: assessments of the temperature of a cold source toguarantee greater flexibility for cooling the new CCGT)and specific civil works (for example: rainfall assessments for the design of drainage systems in solar plants);• estimate of extreme wind speed using updated databases containing the registers and historical trajectories
of hurricanes and tropical storms, with the resulting selection of the wind turbine technology that is best suited to the conditions that were found.
In order to be able to promptly react to adverse events,
the Group also implements dedicated emergency management procedures with real-time communication
protocols, planning and management of all activities torestore operating assets in a short space of time, as well
as standard checklists for assessing damage, ensuringthat all plants can be put back into service as safely andquickly as possible. One way of minimizing the impacts ofclimate phenomena is the Lesson Learned feedback process, which is implemented by the technical departments,
is governed by the existing operating model and influences
future projects.

Grid assets resilience
In order to deal with extreme climatic events, in the GridsBusiness Line, the Enel Group has adopted an approachcalled “4R” which, in a dedicated Policy that aims to ensure an innovative strategy for the resilience of distribution
networks, defines the measures to be adopted in the phaseof preparation for an emergency on the network and to146

Sustainability Report 2022

ensure swift restoration of services ex post, i.e. once theclimatic events have caused damage to assets and/or disconnections. The 4R strategy is divided into four phases:
1. Risk Prevention: includes actions that make it possible
to reduce the probability of losing grid elements due toan event and/or to minimize its effects, such as interventions able to increase the robustness of the infrastructure and maintenance operations. When choosing
technical solutions to increase resilience, a catalogue isused to determine which is the best way to intervene foreach climatic event and geographic area;
2. Readiness: comprises all measures that aim to improve
the timeliness with which potentially critical events are
identified, ensuring coordination with the Civil Protection Department and local officials, as well as to prepare
the necessary resources once a grid disconnection has
occurred;
3. Response: represents the phase for assessing the operating capacity for facing an emergency when an extreme event occurs, which is directly correlated to theability to mobilize operating resources in the field andthe possibility to perform remote controlled operations
to restore service via resilient backup connections;
4. Recovery: the final phase which has the goal of reconnecting the grid as soon as possible with ordinary operating conditions, in the cases in which an extreme
weather event cause interruptions in service in spite of
the previously adopted measures for increasing resilience.
Following this approach, the Business Line has preparedvarious policies on specific actions aimed at dealing withthe various aspects and risks inherent in Climate Change,
in particular:• Policy for preparation and recovery during emergencies: a policy related to the last 3 steps of the 4R approach which indicates the guidelines and measurestargeted toward improving the preparation strategies,
mitigating the impact of total interruptions and, finally,
restoring service to the largest number of customers
possible as quickly as possible.

• Guidelines for the Resilience Plan of the electricity grid:a dedicated policy has the objective of identifying theextraordinary climatic events with the greatest impact
on the grid, assessing specific KPIs of the AS-IS grid andimproving them on the basis of proposed actions in order to finally assess their order of priority. This makes it
possible to select the actions that, when implemented,
minimize the impact on the grid of particularly criticalextreme events in a certain area/region. The Policy istherefore set in the first two phases of the 4R approach,suggesting measures regarding Risk Prevention andReadiness. In Italy, this Policy translates into the Resilience Plan that e-distribuzione has prepared every year

1

Letter to stakeholders

2

We empower sustainable progresssince 2017, and which represents and addendum to theDevelopment Plan that includes ad hoc investments overa 3 year period that aim to reduce the impact of extreme
events belonging to a certain critical cluster: heat waves,
ice loads and wind storms (falling of tall trees). Around
672 million euros were invested in the period 2017-2021
and a further 262 million euros will also be used in the following three years, as explained in the addendum to the2022-2024 Plan. In the face of these risks, investments
have been planned such as the targeted replacement ofbare conductors with insulated cable, in some cases theburying of cables, or solutions that provide re-powering
routes that are not vulnerable to the above-mentioned
phenomena. As in Italy, similar topics are being examined in other countries too, such as Europe and SouthAmerica, so as to prepare a process for planning ad hoc
investments that can increase the resilience of grids toextreme events, while taking into consideration the specific characteristics of each territory.

• Policy on the prevention and preparation of the risk offire for electrical installations: a policy dedicated to firerisk defines an integrated approach to emergency management applied to forest fires, both in cases in which
they are started by events exogenous to the networks
and in cases, albeit rare, in which they are caused by
the networks themselves and, in any case, are potentially dangerous for Enel plants. The document sets out
the guidelines to be implemented in the various areasof presence so as to identify areas/plants at risk, define
specific prevention measures (such as evaluating specific maintenance plans and any strengthening measures)
and, in the event of a fire, to manage the emergency inthe best possible way so as to limit its impact and resume the service as quickly as possible.

• The implementation of systems for weather forecast-ing, grid monitoring and assessing the impact of criticalclimate phenomena on the grid, preparation of operational plans and organization of special exercises. In thisregard, it is particularly important to have prior agreements in place for mobilizing extraordinary resources– which are identified beforehand in order to deal withthe emergency – whether internal or from contracting
companies. For instance, in Italy, besides installing andputting into operation three experimental stations inorder to observe and investigate the phenomenon of

3

Materiality analysis

4

Our performance5

Appendix

ice-sleeve formation on MV conductors, IoT sensor trials
were conducted for monitoring overhead lines in areasthat are particularly exposed to snow and wind (Newman
project).

Inclusion of climate change effects in theevaluation of new projects
Many activities related to the evaluation and implementation of new projects can benefit from climate analyses,
both general and site-specific, which the Group is beginning to integrate with those already considered in the evaluation of new projects. For example:• Preliminary studies: in this stage, climate data can offer

preliminary screening, through the analysis of specificclimate phenomena, such as those shown above in theanalysis of physical scenarios, and summary indicatorssuch as the Climate Risk Index, integrated into the OpenCountry Risk. These data provide a preliminary measureof the most relevant phenomena in the area, among
those identified as being of interest for each technology.
• Estimation of potential output: climate scenarios will be
progressively integrated to allow for an assessment of
how climate change will modify the availability of the renewable resource at the specific site. In the preliminary
analysis of the impact of chronic climate change on renewable power generation, the approach applied for the
moment on a few pilot sites and then scaled to the entire
generation portfolio is described.
• Environmental impact analysis: the Group has begun tointegrate the Climate Change Risk Assessment into theset of documentation produced, which contains a representation of the main physical phenomena and their
expected change in the area.
• Resilient design: as described above, among the climatechange adaptation activities, those aimed at devising
resilient assets by design take on great importance. The
Group is working to consider progressively analyses
based on climate data, for example the increase in frequency and intensity of acute events. These will complement existing analyses based on historical data alreadyin use, in order to increase the resilience of future assets,
including any adaptation actions that may be required
over the life of the project.

Zero emissions ambition

147

Enel’s performance in fighting against climate change
3-3 305-1 305-2 305-3 305-4 305-6 TCFD: Metrics & Targets

Our carbon footprint
Total direct GHG
emissions Scope 1(MtCO2eq)

2021

Total indirect GHG
emissions Scope 2(MtCO2eq)

Total indirect GHG
emissions Scope 3(MtCO2eq)2022

Total GHG emissions(MtCO2eq)
132.9

125.8
70.5

75.8

53.1

51.6

4.0

3.8

Value chain

Generation

Trading

Networks

End customers

Other

GlobalBusiness Lines
GHG Scope 1
directemissions(MtCO2eq)

Real Estateand others

1

2

3

4

5

6

Generationfrom thermal
sourcesOther

SF6 losses
in thenetworks

Auxiliary
motors in
networks

OfficesCompany
fleet

0.11 0.11

0.21 0.22

0.01 0.01

0.07 0.08

50.71

52.11

0.45 0.54

GHG Scope 2
indirect
emissions(MtCO2eq)(location
based)GHG Scope 3
indirect
emissions(MtCO2eq)

7

7

8

7

Electricity
purchasedfrom the gridElectricity
purchasedfrom the gridTechnical
lossesfrom thegridElectricity
purchasedfrom the grid(offices)

0.63

0.57

0.14 0.16

2.97 3.26

0.03 0.03

9

10

11

12

13

Upstream
Fuels

Electricity
purchased
for sale

Sales ofgas

Supplychain

Transport ofother rawmaterials
and waste

28.40
23.96

11.25

22.25 22.90

12.99

14.18

10.31
0.00 0.01

2148

Bilancio di Sostenibilità 2022
Sustainability Report 2022

Letter to StakeholdLetter to stakeholders
ers

1
1

2

2
Our sustainable proWe empower sustainable progress
gress

Source1

GHG Scope 1

2

3
4
5
6

Generation fromthermoelectric sources

Other

3

3
Materiality
Materiality analysis
analysis4

performance
Our performance

Description

Appendix
Appendix

55

2021
MtCO2eq2022
MtCO2eq

Combustion of fossil fuels in generation activities (CCGT, Oil&Gas and coal thermal
plants and Biomass).(1) This includes:• CO2 emissions

50.56

51.93

• CH4 (GWP=28) and N2O emissions (GWP=265)

0.16

0.18

CO2, CH4, N2O emissions from fossil fuel use in auxiliary engines in nuclear andrenewable plants

0.03

0.02

NF3 losses (GWP=16,100) in solar panel generation activity(2)

0.00

0.00

SF6 losses (GWP=23,500) in insulation systems of power plants

0.03

0.04

Use of refrigerant gases Fgas and ODS in thermal and hydroelectric plants

0.01

0.01

CH4 leakages in gas-fired thermal power plants(3)

0.00

0.01

CH4 biogenic emissions from hydroelectric basins

0.32

0.32

CO2, CH4, N2O emissions from transport of fuels (LNG and coal) on vessels under own
operational control

0.06

0.15

SF6 losses in the networks

SF6 losses (GWP=23,500) in insulating systems for power distribution activities

0.11

0.11

Auxiliary motors in networks

CO2, CH4, N2O emissions of fossil fuel use in auxiliary engines in network assets

0.21

0.22

OfficesCO2, CH4, N2O emissions from diesel and natural gas combustion for heating systems
and canteens in offices, including all properties in all Business Lines and Group offices

0.01

0.01

Company fleet

CO2, CH4, N2O emissions from diesel and gasoline combustion in company fleet
vehicles

0.07

0.08

0.63

0.57

0.14

0.16

• Civil uses in the premises (computers, lighting, heating) and in the commercial
offices (Market and Enel X)

0.03

0.03

GHG emissions from energy dissipation by distribution network losses under Enel’soperational control (location based)

2.97

3.26

GHG Scope 2

GHG emissions from consumption of electricity purchased from the grid (location
based):
7

8

Electricity purchased from the • In energy power plants (including 3SUN Factory, mines and port terminals)
grid for consumption(4)• In power distribution substations

Technical losses from the grid

Emissions of CO2, CH4 and N2O from the extraction and transport of fuels used inthermal power plants:

GHG Scope 3

9

10
11
12

13

Upstream Fuels(Category 3)(5)• Coal

1.24

1.88

• Gas

10.01

8.42

• Diesel & fuel oil

0.01

0.01

Electricity purchased for sale(Category 3)(5)Emissions for the generation of electricity purchased and sold to end customers(retail market, MtCO2eq in 2022 and 2021, respectively)

23.96

28.40

Gas sales (Category 11)(4)Emissions from the use of gas sold to end customers (retail market)

22.25

22.90

Supply chain(5) (6) (7)GHG emissions from the supply chain, related to the production of goods andservices purchased from suppliers

12.99

14.18

0.00

0.01

Transport of other raw
materials and waste (Category GHG emissions from road transport of other fuels, raw materials and waste4)(5) (8)GHG source considered in SBTi target on Scope 1 GHG emission intensity relating to power generation.
GHG source considered in the SBTi target on the intensity of GHG Scope 1 and 3 emissions relating to Integrated Power.
GHG source considered in the SBTi target on absolute Scope 3 GHG emissions relating to Retail Gas.
GHG source considered in SBTi target on absolute additional GHG emissions Scope 1, 2 and 3.
GHG source excluded from SBTi targets boundary.

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

Following the guidance of the GHG Protocol, CO2 emissions from biomass, which amounted to 114,838 tCO2 in 2022 (125,878 tCO2 in 2021), were not included as they cannot be considered within Scope 1, while CH4 and N2O emissions were considered.
NF3 losses were 14 tCO2eq in 2021 and 4 tCO2eq in 2022.
CH4 leakage in gas-fired thermal power plants was 3,255 tCO2eq in 2021 and 6,754 tCO2eq in 2022.
2021 figure restated following the introduction of a new method for calculating GHG emissions from pumping systems.
Scope 3 categories according to the GHG Protocol.
2021 figure restated following the implementation of a new, more precise methodology for calculating indirect emissions related to work performed in the
power distribution business.
29% of 2022 emissions contribute to the target on absolute additional GHG Scope 1, 2 and 3 emissions in 2030 and 43% in 2040 (these percentages cannot
be added together).
GHG emissions from transport of other fuels, raw materials and waste on wheels are 4,032 tCO2eq in 2021 and 9,842 tCO2eq in 2022.

Zero emissions ambition

149
3

The calculation of Scope 1, 2 and 3 emissions covers all
greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3),
depending on the type of emission source.
In 2022, Enel’s carbon footprint was 132.9 MtCO2eq (upfrom 2021 by 6%), broken down as follows:• Scope 1: 53.1 MtCO2eq, representing 40% of total GHG
emissions (98.2% of these emissions of CO2, CH4 andN2O result from the combustion of fossil fuels in thermal power plants for electricity generation). Despite thepositive impact of the sales of gas-fired plants in Russia
and the closure of coal-fired plants in Chile, there was a
3% increase in direct emissions compared to 2021, due
to an increase in coal-fired electricity generation in Europe of about 7 TWh (61.5% increase compared to 2021)
as a result of the current geopolitical environment andvarious weather factors, including a reduction in gas
availability and an increase in drought, which limited hydroelectric generation in Europe (7 TWh less compared
to 2021, a 31% reduction). The percentage of emissions
related to EU-ETS is 66.8% of the total Scope 1 (compared to 61.5% in 2021) and the percentage of emissions
related to the green tax system in Chile (Sistema de Impuestos Verdes) accounted for 9.0%.

• Scope 2: 4.0 MtCO

accounting for 3% of the total GHG
2eqemissions. Despite the 6% reduction in scope 2 emissions from energy consumption in 2022 compared to2021 due to a reduction of 9% of the energy consumption in 2022 (from 3.6 TWh to 3.2 TWh), there has been
a 7% increase in overall Scope 2 emissions compared to2021, due to the worsening of the emission factors of
the electricity systems in some countries where Enel distributes energy, including Italy, Romania, Chile and Bra-150

Sustainability Report 2022

zil, with a negative impact on indirect emissions related
to technical grid losses, which have a weight of 81% in
Scope 2.

• Scope 3: 75.8 Mt CO

accounting for 57% of total GHG
2eqemissions. There has been an 8% increase over 2021 asa result of:– a 9% increase in indirect emissions from suppliers(from 13.0 MtCO2eq to 14.2 MtCO2eq), due to a 19% increase in the volumes (measured in euro) of products,
services and works ordered, although the ratio of greenhouse gas emissions to volumes ordered improved
by 8% due to the circularity approach in procurement(from 968 tCO2eq/€ to 889 tCO2eq/€);– a 19% increase in indirect emissions from the purchase of energy for sale to end customers (from 24.0
MtCO2eq to 28.4 MtCO2eq), mainly due to the worsening of the emission factors of the electricity systems
in which Enel purchases electricity in the wholesalemarket;– a 52% increase in indirect emissions from the coal mining and transport process for thermal power plants(from 1.2 MtCO2eq to 1.9 MtCO2eq), due to the geopolitical context and the drought period in Europe. In
spite of this, indirect emissions related to the process
of extracting and transporting gas for thermal power
plants and end customers decreased by 16% in 2022
compared to the previous year (from 10.0 MtCO2eq to
8.4 MtCO2eq).

CO2 emissions from biomass combustion, not included in
Scope 1, were 114,838 tCO2 in 2022, down 9% from 2021.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

In 2022, the trend in intensity metrics compared to 2021
was as follows:

Intensity metric

CO2 emissions intensity
relating to power generation

Scope 1 GHG emissions
Intensity relating
to Power Generation

Scope 1 and 3
GHG emissions Intensity
relating to Integrated Power

Scope 1 GHG emissions
intensity

2021(gCO2eq/kWh)

222

225

203

229

2022
(gCO2eq/kWh)

225

229

218

233

Var. %

1.4%

Metric considered for the 2020-2022 long-term incentive program.
Takes into account CO2 emissions relating to power generation,
excluding other greenhouse gases.
The target set in 2022 of 220 gCO2/kWh was not reached due tothe following exogenous factors related to the geopolitical context:
non-authorization of the closure of the As Pontes coal-fired plant(Spain), requested in 2019 for 2021;
three-month delay in authorizing the closure of the Bocamina
coal-fired plant (Chile).
The sterilization of these exogenous effects leads to a result of 220
gCO2/kWh.

1.8%

Metric considered in the Sustainability-Linked Financing
Framework. It considers Scope 1 emissions relating to power
generation (including heat), including CO2, CH4 and N2O, andexcluding pumped storage power generation.
The increase compared to 2021 is mainly due to higher coalproduction in Europe following the drought period (particularly in
Italy) and the geopolitical context.

7.4%

Metric considered in the Sustainability-Linked Financing
Framework. It is calculated as the combination of 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) fromgeneration of electricity purchased and sold to end customers,
divided by power generation (including heat and excluding pumped
storage generation) and purchase of electricity.
In addition to the exogenous factors already indicated in theprevious metrics on direct emissions, the increase compared to2021 is also due to an increase in indirect emissions relating to thepurchase of energy caused by a worsening of the emission factorsof the electricity systems in which Enel sells electricity to the end
customer.

1.7%

The metric considers 100% of direct emissions (Scope 1), including
those from power generation (and other emissions in plants),
energy distribution, the vehicle fleet and buildings, compared to all
power generation (except pumped storage generation).
The increase is due to the exogenous factors described above.

The GHG inventory statements were audited by DNV GL,
one of the main certification bodies world-wide, witha reasonable level of certainty for Scope 1, Scope 2 andScope 3 emissions, as limited to the sale of natural gas,
and with a limited level of certainty for the other Scope 3
emissions included within the scope of application of theinventory. The audit was conducted according to Standard
ISO 4064-3 for the compliance of greenhouse gas (GHG)
inventories with the WBCSD/WRI Corporate Accounting••

and Reporting Standard (GHG Protocol). Furthermore, thecalculation of Scope 1, 2 and 3 emissions has been subject to reasonable assurance by the independent auditing
company, KPMG SpA.
For more details concerning Enel’s carbon footprint, pleaserefer to the 2022 GHG inventory (accessible via the following link: https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/ghg-inventory-2022.pdf.

Zero emissions ambition

151

Financial, operational andenvironmental metrics
The main metrics and financial goals regarding the risks
and opportunities connected to climate change, as well as

the operational metrics along the entire value chain andthe environmental ones, are reported below.

Financial metrics

Ordinary EBITDA for low-carbon products,
services and technologies(1)Capex for low-carbon products,
services and technologies(2)Revenues from coal plants(3)Revenues from thermal generation(3)Revenues from nuclear plants

UM

2022

2021

2022-2021%

billions of euros

13.9

17.3

3.4

-19.6

% of tot EBITDA

70.6

90.1

-19

-

billions of euros

13.3

12.3

1.05

8.5

% of total Capex

92.1

93.9

-1.8

-

billions of euros

6.5

1.9

4.6

-

% of total
Revenues

4.6

2.2

2.4

-

billions of euros

24.1

12.9

11.2

86.8

% of total
Revenues

17.2

15.1

2.1

-

billions of euros

1.6

1.4

0.2

% of total
Revenues

1.1

1.6

-0.5

-

%

63

55

8

-

€/ton

78.2

53.2

24.9

46.8

14.3

(3)

Debt ratio with sustainability criteria
CO2 reference price(1) 2021 figure has been restated to integrate the changes of gas margin due to a change of the control model.
(2) 2021 figure has been restated to consider the inclusion of Latin American retail business in Enel Grids.
(3) 2021 figure has been restated to consider the classification in the count “net results of discontinued operations” concerning the results from the businessactivities performed in in Russia (disposed in the fourth quarter of 2022), Romania and Greece as they meet the requirements established in the international
accounting principle IFRS 5 for the classification of “discontinued operations”.

In 2022, Enel’s ordinary EBITDA associated with low-carbon
emissions services and solutions was 13.9 billion euros,
down 19.6% from 2021. The Capex dedicated to low-carbon emission technologies, services and solutions has increased as compared to 2021, reaching 13.3 billion euros,
equal to 92.1% of total Capex.
The percentage share of revenues from coal-fired plants
increased, mainly due to the need to compensate for low
hydraulicity in Italy and Spain due to adverse weather conditions that severely penalized hydroelectric generation in
2022. Specifically, in 2022, revenues related to coal-fired
plants correspond to 4.6% of the Group’s total revenues.
Enel’s strategy of promoting a sustainable financial model has contributed to reaching 63% of debt related to thesustainability objectives.

152

Sustainability Report 2022

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 make estimates 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, the main
items included in the Consolidated Financial Statements
for the year ended December 31, 2022 affected by the useof management’s estimates and judgments concern the
impairment of non-financial assets, bonds related to theenergy transition, including those for decommissioning
and site restoration of certain power generation plants. For
further details please refer to Section 5. Climate Change
Disclosures in the 2022 Integrated Annual Report.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Operational metrics
302-1

EU1

EU2

EU3

EU11

EU30

Segment of theelectricity value chain

UM

2022

2021

GW

84.6

87.1

- of which renewables

%

63.3

57.5

-

- of which thermoelectric

%

32.8

38.7

-

- of which nuclear

%

3.9

3.8

-

Net generation(2)

TWh

227.8

207.1

- of which renewables

%

49.4

48.9

-

- of which thermoelectric

%

39.0

39.6

-

- of which nuclear

%

11.6

11.5

-

%

42.8

42.9

-0.1

Mtep

26.5

26.3

0.2

0.8

End users with active smart meters(4)no.

45,824,963

44,968,974

855,989

1.9

Smart meters (coverage)

%

63

60

3.0

-

Publicly owned charging points for electric
mobility(5)

.000

22.6

18.1

4.5

24.9

Electric buses

.000

5.3

3.0

2.3

76.7

Smart public lighting

mil

3.0

2.8

0.2

7.1

Demand response capacity

MW

9,004

7,713

1,291

16.7

Storage capacity

MW

760

375

385

-

Net installed maximum capacity(1)GENERATION

2022-2021%

Additional indicators
Average thermoelectric park efficiency (%)(3)
Total direct fuel consumption
Digitalization

NETWORKSElectrification, energy efficiency anddigitalization

RETAIL

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

New services

Does not include managed capacity of 4.9 GW in 2022 and 3.3 GW in 2021.
Does not include generation from managed capacity of 11.3 TWh in 2022 and 9.6 TWh in 2021.
The value is calculated on the park's plants and is weighted on the production values.
The figures for 2021 have been restated. Of which second-generation smart meters 25.2 million in 2022 and 23.5 million in 2021.
KPIs changed from previous year, with focus on publicly owned infrastructure.

The net electricity generated by Enel in 2022 increased by
5.2 TWh (+2.3%) compared to the value recorded in 2021,
mainly due to higher generation from wind sources (+5.5
TWh) mainly in Brazil and North America, a higher contribution from coal-fired plants (+5.9 TWh) in Italy, and higher
generation from combined-cycle plants (+2.7 TWh) mainly

in Spain and Chile. It should also be noted that the complete deconsolidation of the companies present in Russia
took place in 2022, which led to a decrease in net power
generated of 11.2 TWh for oil & gas and combined cycle
sources only.

Zero emissions ambition

153

Net electricity generation by source (2022)

22.7%

23.9%

22.7%
19.0%

23.9%
11.6%
Combined cycle

Combined cycle
23.2% in 2021

Hydroelectric
25.6% in 2021

Hydroelectric
Wind
25.6%
in 202117.0%
in 2021

Nuclear23.2%
in 2021
11.5%
in 2021

2022

19.0%
5.0%
Wind

Solar
17.0%
in 2021
3.5%
in 2021

Total

227.8 TWh2022

222.6 TWhin 2021

5.0%
2.7%
Solar

Geothermal power and other
3.5%
in 2021
2.8%
in 2021

Total

227.8 TWh222.6 TWhin 2021
Total conventional sources:
Total renewable sources:

2.7%

49.4%

Geothermal power and other
2.8% in 2021

50.6%

48.9% in 2021

51.1% in 2021

Coal
11.5%
6.2%inin2021
2021

8.7%
6.4%
Coal

Fuel oil and turbogas
6.2%
in 2021
10.2%
in 2021

6.4%

Fuel oil and turbogas
10.2% in 2021

Total conventional sources:

Total renewable sources:

49.4%

50.6%

48.9% in 2021

51.1% in 2021

mainly in North America, Brazil and Spain, and 2.6 GW of
new solar capacity, mainly in Chile, the United States, Spainand India.
In addition, as already mentioned for net power generated,all companies in Russia totaling 5.3 GW were deconsolidated.

At the end of December 2022, Group’s total net installed
maximum capacity was 84.6 GW, down by 2.5 GW compared to 2021. In addition, Group’s net renewable installedcapacity reached 53.6 GW, up by 3.5 GW from 2021, andaccounting for 63.3% of total net installed efficient power.
During the year , 1.8 GW of new wind capacity was installed,

16.5%

33.5%
Net installed maximum
capacity (2022)

Combined cycle
17.3% in 2021

Hydroelectric32.0% in 2021

16.5%
8.5%
Combined cycle

33.5%
18.6%

Hydroelectric
Wind
32.0%
in 202117.1%
in 2021

2022

18.6%
10.1%
Wind

Solar
17.1%
in 2021
7.3%
in 2021

Total

84.6 GW

2022

87.1 GWin 2021

10.1%
1.1%

Solar
Geothermal power and
other
7.3%
in 2021
1.1%
in 2021

Total

84.6 GW

87.1 GWin 2021
Total conventional sources:
Total renewable sources:

1.1%

63.3%

Geothermal power and other
1.1% in 2021

57.5% in 2021
Total renewable sources:

63.3%

57.5% in 2021

154

11.6%
8.7%
Nuclear

Sustainability Report 2022

36.7%

42.5% in 2021
Total conventional sources:

36.7%

42.5% in 2021

Fuel oil and turbogas
17.3%
in 2021
13.5%
in 20218.5%
7.8%
Fuel oil and turbogas
Coal
13.5%
7.9%inin2021
2021

7.8%
3.9%
Coal

Nuclear7.9%
in 2021
3.8%
in 2021

3.9%

Nuclear
3.8% in 2021

1

Letter to stakeholders

2

We empower sustainable progress

In 2022, Enel maintained a key role in developing new solutions to accelerate the energy transition process throughthe development of 760 MW of storage capacity, increasing the current GW of demand response by 51% compared
to 2021.
The digitalization of the electricity grid, which has been
identified as a key enabler able to positively influence cli-

3

Materiality analysis

4

Our performance5

Appendixmate change through levers such as the integration of
more renewable energy or an increase in energy efficiency, continued being a priority for Enel also in 2022. In particular, in 2022 the total number of end users with active
smart meters grew 1.9% as compared to the previous year,
reaching 45,824,963 in 2022.

Environmental metrics
302-3
The following table presents the environmental metrics related to climate change, in addition to the greenhouse gas
emissions previously described. Refer to the chapter on“Conservation of natural capital” of 2022 Sustainability Report.

UM

2022

2021

2022-2021%

l/kWheq

0.23

0.25

-0.02

-8.0

Withdrawal of water in water stressed areas(1) (2)

%

19.2

23.0

-3.7

-16.3

Generation with water withdrawal in water stressed areas(2)

%

13.3

14.0

-0.70

-5.0

Specific withdrawal of freshwater(1)(1)

The new target of reducing specific freshwater withdrawals, turning its attention to the most valuable and vulnerable water resource, testifies to Enel’s evenmore explicit commitment to the protection of natural habitats and the needs of the community. In particular, the objective is in keeping with the reportingand commitment requirements introduced by the new proposed EU EFRAG ESRS-E3 Water and Marine Resources standard, and with the environmental
impact (or pressure) priorities indicated for corporate analysis of nature-related risks and opportunities by the international TNFD and SBTN frameworks.
(2) The total value of process and closed-loop cooling water withdrawals for the year 2021 was recalculated following the refinement conducted in 2022 of theway in which water withdrawn for cooling purposes at certain nuclear power plants in Spain was calculated.

Zero emissions ambition

155

Financial and operational targets
The table below shows the main operational objectives
included in the 2023-2025 Strategic Plan, which reflect
Enel’s role in combating climate change along the entire

Segment of the electricity
value chain

electricity value chain, in addition to the GHG emission reduction targets described in the previous section.

Description of the goal

UM

2025

GW

79.9

%

76

- of which thermoelectric%

20- of which nuclear

%

4

TWh

204

%

70

Net installed maximum capacity(1)- of which renewables

Net generation
GENERATION(2)- of which renewables- of which thermoelectric%

17- of which nuclear%

13

Smart meter

mil

48.3

Smart meters (coverage)%~80

Publicly owned charging points for electric mobility(3)

.000

31.4

Electric buses.000

12.965

Smart public lighting

mil

3.3

Demand response capacity

GW

12.4

Storage behind the meter

MW

352

Digitalization
NETWORKSElectrification, energy efficiency and digitalization

MARKET

New services(1) Does not include managed capacity and BESS, which are around 10 GW and about 5 GW by 2025, respectively.
(2) Does not include generation from managed capacity of approximately 25 TWh in 2025.
(3) KPI changed from previous year, with focus on publicly owned infrastructure.

In addition, the following targets have been set to 2030:• renewable capacity out of the total: ~85% (~+20% from2022);• gas sold: ~3 bcm (-70% from 2022);

156

Sustainability Report 2022

• demand response capacity: >20 GW (>2x compared to2022);• digitalized network customers: 100% (+37% compared to2022).

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix157

Clean electrification

Material topics (I level)

Doublemateriality

Plan

SDG

• Products and services
for electrification anddigitalization• Customer centricity

Cleanelectrification• Infrastructure andNetworks

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG
7
13

Activities

2022 results

Progress

Development of additional renewablecapacity and reduction of thermal
capacity(1)5.2 GW of built renewable capacity(2)63.3% of installed renewablecapacity(4)Expansion and management of renewables

Energy production from renewablesources(5)

13

Tag

21 GW additional renewable capacity
in 2023-2025(3)-13% of conventional capacity in the
period 2023-2025-6.0 GW of thermal capacity(1)72023-2025 targets

49.4%

70% in 2025

I
E

I
E
S
T

Promoting the adoption of
the sustainable construction
site model (no. sustainable
construction sites/total
construction sites)

I
E
S
T

100% renewable construction
sites(6)
4

6

7

8

12 13

100% hydroelectric, geothermal
and thermal sites
Target outdated as it is considered
achieved

Sustainable construction site

14 15

Monitoring the efficacy of the
adoption of sustainable practices(no. practices adopted/no. practices defined in the CSV Plan)

Monitoring the efficacy of the
adoption of sustainable practices(no. practices adopted/no. practices
defined in the CSV Plan)

E

95% renewable construction sites(6)95% renewable construction sites(6)in 2023T

75% hydroelectric, geothermal andthermal sites

IS

80% hydroelectric, geothermal andthermal construction sites in 2023

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

Includes nuclear.
Includes managed capacity. The value of renewable capacity built in 2022 includes 0.4 GW of BESS.
The target includes managed and BESS capacity for about 4 GW in the period 2023-2025.
Consolidated perimeter. From the calculation of the percentage of renewable installed capacity for the purpose of the Sustainability-Linked Financing
Framework, 531.1 MW of purchased capacity from power plants acquired by the Group was excluded in accordance with the contractual documentation of
the individual instruments.
(5) Excludes generation from managed capacity, equal to 11 TWh in 2022 and 25 TWh in 2025.
(6) Except hydroelectric and geothermal.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2
1582022 Sustainability
Sustainability
ReportReport2022

Achieved

1

Letter to stakeholders

SDG

Activities

2

We empower sustainable progress

3

Materiality analysis

2022 results

Expansion and management of renewables

N.A.

4

Progress
N.A.

Our performance

52023-2025 targets
Sustainable Plant Index Monitoring the efficacy
of sustainable practices
implementation
6% in 2023

Promoting the adoption of
the sustainable plant model(sustainable plants/ totaleligible plants)
4

6

100%

7

8

Target outdated as it is considered
achieved

12 13
14 15

Sustainable plant

Appendix

Tag
I
E
S
T
I
E
S
T

Improving the adoption of
the sustainable plant model(practices implemented in theyear/practices implemented in
the previous year)
10.3%

I
E
S
T

Target outdated as, after an
initial novelty phase of the modelin which it was important tomaximize its adoption to enable its
internalization, the model is now
known and applied and the focus ison measuring and maximizing theresults of applications

Read more
The Sustainable Plant Index summarizes the sustainability of a plant on the basis of environmental and social factors.

Clean electrification

159
3

SDG

Activities

2022 results

7

SAIDI (min)231

Progress2023-2025 targets

Tag~150 in 2025(7)

I
E

9

S
7

2.6

SAIFI (no.)

2.1 in 2025IE

9Grids improvement and development

S
9
11

Innovation and digitalization of the
distribution networks

45.8 mil end users with active
smart meters48.3 mil end users withactive smart meters in 2025

I
E
G
T

212 thousand new connections
7
9
13

New producer connections (Italy andSpain)

748 thousand newconnections in the period2023-2025

4.2 GW of power

25.3 GW of power in the
period 2023-2025

179 thousand connections in ruraland suburban areas
7
13

Rural and suburban electrification- grid extension and microgrid
solutions(8)

I
E
I
E

499 thousand connections
in rural and suburban areasin the period 2023-2025

IES

690 thousand beneficiaries in ruraland suburban areas

1.9 mil beneficiaries in ruraland suburban areas in the
period 2023-2025

I
E
S

7

Operational management of grids

9Cabling ratio (km of cable line/total
km of line)

60.7%

60.8% in 2025

I
E
S

7

4.7%

Network losses (Italy)

4.7% in 2025

I
E

9
7

5.8%

Network losses (Europe)

N.A.

5.6% in 2025

I
E

9Read more
Rural and suburban electrification projects adopt grid extension or microgrid solutions
in rural areas. Parallel to this, we work for the process of normalizing connections in large
megacities in Latin America (suburban electrification), where we support the resolutionof commercial losses related to irregular connections and where we work for regulated
access to electricity that ensures the necessary security conditions for everyone.

(7) The 2030 target is ~100 minutes.
(8) The 2030 target is 1.8 mil connections and 7.1 mil beneficiaries. The scope includes Argentina, Brazil, Chile, Colombia, Peru and Romania.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable41602022 Sustainability
Sustainability
ReportReport2022

Achieved12
1
GruppoEnel to stakeholders
Governance
LetterSDG
9Quality of customer relations
and satisfaction of their needs

11

3

2
Strategiadel Gruppo
e gestionedel rischio
We empower
sustainable
progress

Activities

2022 results

Automatic payments(% payments through direct debit/
total payments)

34.7%

Le performancedel Gruppo
Materiality
analysis

34

Progress

5
4Prospett
ive future
Our performance

6

Bilancio5 Appendix
consolidato

2023-2025 targets
37.2% in 2025

Tag
I
S
T

9
11

E-billing(% bills issued and delivered
paperless/total bills)

30.4%

40.0% in 2025

I
S
T

9
11

Digital clients(% customers registered via web or
app/total customers)

37.0%

50.0% in 2025

I
S
T

9
11

Commercial claims(no./10k customers)

212

200 in 2023

I
S
T

9
10

Inclusive activities, products andservices - Customer experience

Analysis of the customer
experience for customers withdisabilities and final qualitative
assessment:
country-level analysis (Italy) ofvulnerable customer categories
carried out for Doxa;
analysis of the Social Inclusion
Boosting Program with the
Disability Inclusion Community:in Colombia on architecturallighting; in Brazil on electricbuses; in Italy on Homix, on
Enel X Pay, on JuicePole and on
JuiceBox

Analysis of the customer experiencefor customers with disabilities andfinal qualitative assessment

Inclusive activities, products andservices - Products and services

10 inclusive products and services(including standard charging points
for electric vehicles also preparedfor people with disabilities; “Unpannello in più con Legambiente”;
Confia for energy poverty in Spain;
adaptation of electric buses forpeople with disabilities)

36 inclusive products and services in
the period 2023-2025

Inclusive activities, products andservices - Slow shopping

111 shops and/or call centers thatuse slow shopping methods in Italy
and Chile

35 shops and/or call centres thatuse slow shopping methods in the
period 2023-2025

Inclusive activities, products andservices - Training

238 Enel people in our shops
trained to welcome customers withdisabilities in Romania, Peru andColombia

500 Enel people in our shops
trained to welcome customers withdisabilities in the period 2023-2025

S

Clean electrification

161
5

I
S

•

11

Quality of customer relations andsatisfaction of their needs

•

9
10
11

9
10

I
S

I
S

11
9
10
11

I

SDG
7

Activities

2022 results

Real-time demand response

8.5 GW

Progress2023-2025 targets

Tag

12.4 GW in 2025(9)

I

9

E

13

S
T

75 MW

Storage behind the meter

9352 MWin 2025

I
E

13

Technologies and services forcustomer electrification

ST

22.6 thousand public owned
charging points

Charging points(10)91131.4 thousand public
owned charging points in
2025

I
E

13

G
T

7

9

3.0 milLighting points

3.3 mil in 2025

I
E

11 13

T
9

5,321 electric buses

Electric buses

Around 13 thousand in 2025

I

11

E

13

T

9
11

Digitalization of services formunicipalities (YoUrban platform)

N.A.

N.A.

4,000 municipalities
connected in 2025

I
E

13

G
T

Read more
YoUrban is a platform for monitoring and managing the urban infrastructure ecosystem,that integrates services (including geolocation, real time monitoring) and assets such as
lighting points, electric vehicle charging points, and environmental sensors. Sustainableurban development models such as CO2 City Index, Circular City Index, 15Min City Index arealso available on the platform.

(9) The 2030 target is >20 GW.
(10) KPI changed from previous year, with a focus on public owned infrastructure.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable

61622022 Sustainability
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ReportReport2022

Achieved

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

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5

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The energy sector underwent a profoundrevolution in 2022 that required a twofold
acceleration: diversifying and ensuring
security of supply at predictable prices,
as well as continuing on the path taken inachieving an increasingly sustainable energymix.
To reduce the dependence on raw materials,
we are promoting greater diversification of
the supply chain of key technologies for thetransition, including investments to locate
photovoltaic panel production in Europe,
particularly with the 3SUN Gigafactory inSicily, whose generation capacity will grow
15 times over current output, reaching 3,000
MW per year in 2024.
Electrification is the common strategic
horizon toward the progressive
decarbonization of the economy, whichcannot disregard the efficiency anddigitalization of infrastructure and, inparticular, distribution networks. As a global
player distributing to both rural areas andsome of the largest megacities on theplanet, we are committed to developing
a unique integrated operating model tomanage the transformation of the traditional
distribution business model and theevolution of electricity grids into resilient,participatory and sustainable platforms.
Electrification is also the lever throughwhich customers can participate first-handin the change taking place, choosing andtapping into the benefits of sustainable
solutions that are affordable, innovative,
flexible and digital. The change starts

4

Our performance

Appendix

precisely with individuals and households
who, with the choices they make, can help
accelerate the energy transition, not only
by purchasing energy generated fromrenewable sources rather than fossil fuels,
but also by becoming “prosumers”, that is,
generators of energy as well as consumers,
through, for example, the new Renewable
Energy Communities (RECs).
Electrification of final energy consumption
is confirmed as the optimal solution
to decarbonize the economy, maketransportation more efficient, reduce
environmental impacts and digitalize
our homes and cities. It must therefore
be understood as an essential tool toachieve the energy transition and shapea sustainable development model. We
continue to lead the development ofinnovative technologies that make the useof clean electricity increasingly affordable
and widespread in homes, businesses andgovernment entities, while accelerating
the digitalization of services for greater
efficiency in the use of energy itself.
In addition, 2022 saw the birth of the Enel X
Way Business Line, fully dedicated to electric
mobility and in particular the expansion of
charging infrastructure for electric vehicles,with the goal of meeting the rapidly growing
market, the development of advanced
charging technologies and flexible solutions
aimed at improving customer experienceand supporting the electrification oftransportation for consumers, businesses
and cities.

63.3 %

66.8 million

RENEWABLE CAPACITYON TOTAL CAPACITYELECTRICITY AND GASCUSTOMERS

57.5%

69.3 million in 2021 -3.7%

in 20215

2,024,038 km
GRIDS
2,233,368 in 2021 -9.4%

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Commitments to electrification:
Enel’s Energy Compact
Enel is among the companies that participatedfrom the beginning in the United Nations High-Level
Dialogue on Energy (HLDE), which led to the launch of a
global roadmap to set specific goals in accelerating theenergy transition and ensuring access to affordable,
reliable, sustainable and modern energy systems for all
by 2030.
In order to monitor the overall progress of the morethan 200 Energy Compacts launched to date andcounting over USD 600 billion in investments, in 2022
the UN launched the first data collection process tomonitor the progress of SDG 7 commitments, theresults of which were published in the Annual Progress
Report 2022. Commitments to date have resulted
in USD 46 billion of investment, providing better
access to electricity and clean, sustainable cooking for6 million and 14 million people worldwide respectively;
88 GW of renewable energy capacity has been
installed and 2,450 GWh of electricity will be saved
between 2021 and 2022 through energy efficiency.

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Enel’s commitment includes several objectives
underpinning the electrification strategy, such asincreasing renewable capacity and demand response,
reducing GHG emissions in line with the 1.5 °C scenario(certified by SBTi), installing new electric vehicle charging
points, and committing to achieving new connections
in rural and suburban areas in the countries where theGroup maintains a presence. The commitments reported
in the Energy Compact are in line with the Strategic andSustainability Plans so as to ensure transparency andtraceability in the Group’s path to clean electrification.
The Group’s commitment is complemented by:• the Energy Compact for the electrification of Sardinia,
which aims to phase out coal, increase generation fromrenewable sources, and electrify final demand;• Enel Chile Energy Compact, promoted in collaboration
with the Universidad del Desarrollo and the Governmentof the Santiago Metropolitan Region, with the goal ofelectrifying the entire bus fleet by 2030. In addition,
efforts will be made to accelerate the replacement ofwood-burning stoves in residential, commercial andgovernment buildings with electric heating systems,
from the 10,000 substitutions made by Enel to date, toover 60,000 planned by 2030.

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Sardinia: the perfect island for a sustainable model
Thanks to the many renewable resourceson the island, Sardinia can act as a driving force
for electrification and sustainability.

S

ardinia has all the characteristics to becomea green model for the energy transition of thenear future. An ambitious goal to which our Groupintends to contribute, powering the entire Mediterranean
island with the abundant renewable resources available
there. Sardinia has geographical, economic and demographic characteristics that differentiate it from other Italianregions: its insularity has limited the development of energy
infrastructure, to the extent that it has been excluded frommethanization. On the other hand, natural resources suchas wind, water and solar energy are present in abundance
due to the advantageous location, making it possible to create plants capable of producing large amounts of energy.
In line with the Enel Group’s nationwide commitment, thesustainability goal can only be to reduce to zero the useof both coal and natural gas, starting with the promotionof alternative, green solutions. When completed, theelectrification process will at the same time promote sustainable tourism through the spread of environmentallyfriendly vehicles by land and sea as fossil-fueled meansof transportation gradually disappear. In this regard, EnelX Way has signed a memorandum of understanding with
the Region of Sardinia that entails the installation of 1,200
charging points in the island’s urban centers to support
the energy transition.

Based on estimates of Sardinia’s energy needs, it is predicted that by 2040 it will be possible to reduce the use ofcoal and natural gas to zero, using only renewable sources. Most of the installations will be photovoltaic and windplants: together with the existing hydroelectric power
plants and storage systems, therefore, the aim is to have anenergy mix that can guarantee continuity in the availabilityof electricity. With the acceleration of enabling regulatory
factors and authorization time lines, within a few years this
scenario will bring concrete benefits for people’s healthand especially the environment, making Sardinia an energy
benchmark model for green development, potentially replicable elsewhere. The public will also be the main players inthis transaction through a model of distributed generationon the ground and also active through participation in energy communities.
Thanks to the creation of partnerships and agreements, inwhich the Enel Group will play an active role, the state-ofthe-art facilities and innovative infrastructure will also allow
for significant development of the island from an economic point of view, with the creation of new jobs and the arrival of investments.

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Renewable energies
EU1

EU2

112.4 TWh

NET RENEWABLE ELECTRICITY GENERATION
108.8 TWh in 2021 +3.3%

Despite the difficult geopolitical context and the energy crisis
triggered by the war in Ukraine, the Group generated around
124 TWh(1) of electricity from renewable sources in 2022 (119TWh in 2021), of which more than 50% (66 TWh) from windand solar power. We installed and commissioned new capacity of 5,223 MW, up from 5,120 MW in 2021, thanks tomore than 80 plants divided between solar and wind power.
In addition, we reached 387 MW of battery storage, an element of flexibility that is becoming increasingly strategic in
the energy transition process we are currently experiencing.
In 2022, the process of shutting down coal-fired power plants

THE SUSTAINABLE SITE
AND PLANT MODEL
The Design and Site models of the sustainable plant
were created to integrate sustainability into the businessalong the value chain (phases of Business Development,
Engineering & Construction, Operation & Maintenance,
Repurposing) and are based on the principles of Creating
Shared Value (CSV) to forge synergies between the needs ofthe business and those of the region. These are constantly
evolving pillars centered on best practices and proceduresthat aim to mitigate the impact of our plants on the local
areas, increase and foster collaboration with communities
and generate efficiency by promoting and applying theAccording to studies by the IEA (International Energy Agency), the pace of growth of renewables must increase year
after year. They must support the electrification of sectors
such as private transport or domestic heating, which until
now have been almost entirely based on fossil fuels.
We have therefore set ourselves the ambitious goal of generating 100% energy from renewable sources by 2040.
To achieve this goal, we must also invest in the supply
chain. In April 2022, Enel Green Power signed a subsidized

proceeded. In September, we shut down the last coal-fired
unit at the Bocamina power plant, decommissioning the entire coal-fired fleet 18 years ahead of the 2040 targets set
in Chile’s National Decarbonization Plan. In Spain, the Teruelthermal power plant was also dismantled with the demolitionof the cooling towers. For more details, please refer to thechapters “Zero emissions ambition” and “Our commitment toa just transition: leaving no one behind” in this Report.
As of the end of December 2022, the Group’s net renewable installed maximum capacity reached 53.6 GW,(2) up by
3.5 GW from 2021, and corresponding to 63.3% of the total
net installed maximum capacity. This achievement enabled
Enel to meet the target set in all those financial instruments
related to attaining a renewable installed capacity percentage in excess of or equal to 60%.(3) For further details, pleaserefer to the chapter “Sustainability-linked finance according
to Enel” in this document.

principles of CSV, circular economy and innovation, basedon a deep knowledge of the context in which we operate.
The use of local labor for construction activities and actions
taken to maximize the recycling of waste produced andreduce water consumption are examples of the applicationof the models. Specifically, the sustainable Design and Sitepillar applies to the construction phase of a plant up to its
completion, while the Sustainable plant pillar applies to
the Operation & Maintenance (O&M) phase, i.e. the plant’s
operations and generation activities. In 2022, the sustainable
Design and Site model was applied at all construction
sites, and the sustainable practices under the model wereadopted at 75% at the hydroelectric, geothermal andthermal sites and 95% at the remaining renewable sites.

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 forthe production of high-performance double-sided photovoltaic modules. The Gigafactory will help raise efficiency
standards in the market while improving the reliability andsustainability of the panels manufactured, and will make animportant contribution to the growth and maintenance ofa solar power industry in Europe.

(1) 124 TWh equals about 50% of total net production and excludes generation from managed capacity of 11 TWh in 2022.
(2) Including managed renewable capacity and BESS in 2022, 59 GW of installed capacity or 66% of total capacity was reached.
(3) From the calculation of the percentage of renewable installed capacity for the purpose of the Sustainability-Linked Financing Framework, 531.1 MW of purchased capacity from power plants acquired by the Group was excluded in accordance with the contractual documentation of the individual instruments.

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3SUN Gigafactory: the futureof energy takes shape in Catania
A hub of technological excellence for energy
self-dependence
Our 3SUN photovoltaic module factory in Catania,
established in 2010 and continuously growing, ispreparing to become a true Gigafactory. By July 2024,
3SUN will see its annual generation capacity grow 15-fold,from the current 200 MW to 3 GW, becoming the largest
photovoltaic panel factory in Europe. We expect aninvestment of around 600 million euros, of which almost
118 million euros from the EU Innovation Fund, which
identified TANGO, i.e. iTaliAN Giga factOry, as one of theseven initiatives selected. The project has been includedin funding requests for Italy’s National Recovery and
Resilience Plan and, if awarded, the total project funding
could reach up to 188 million euros.
The selection process to recruit more than 500 secondary
school graduates for technical and operational positionsin the areas of generation, maintenance, auxiliary services,
product quality and plant management has just begun. In
2022, 50 graduates were hired and the process to selectanother 100 is currently underway.

With these new recruits, 3SUN’s team, which already includes more than 200 resources, will be significantly expanded to around 900 employees in total. Not only will theGigafactory increase direct employment, it will also generate a total of 1,000 indirect jobs, including current ones,
by 2024.

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Digitalization of grids
3-3

EU4

DMA EU (former EU7)

507.7 TWh

231 min

ELECTRICITY TRANSPORTEDON THE GROUP’S DISTRIBUTION GRID

SAIDI

0.7 million beneficiaries

243 min in 2021 -5.2%

510.6 TWh in 2021 -0.6%

NEW CONNECTIONS IN RURALAND SUBURBAN AREAS
0,8 million in 2021 -12.5%

Electricity distribution grids by country and region

High voltage

Medium voltage

Low voltage

40,566

717,992

1,265,480

2%

35%

63%

Europe and North America

5%

27%

68%

Iberia

6%

36%

58%

Italy

- (1)

31%

69%

Latin America

4%

50%

46%

km

(1)

2,024,038

In Italy there are almost 20 km of high-voltage grid.

The grid is not an infrastructure for its own sake, but enables the interconnection of the different players in theenergy market. Supply electricity is reliable only if it isguaranteed by a grid that, through innovation and digitization, is capable of ensuring the completion of the energy transition through the electrification of uses.
Aware of its strategic role, we now have one of the mostinnovative and digitalized electricity infrastructures in
the world. We also launched an action plan called Grid
Futurability®, a comprehensive, customer-oriented industrial approach aimed at renewing, strengthening andexpanding the Enel Group’s grids in the coming years.
Our aim is to provide a more resilient, participative andsustainable grid, one which can anticipate, through aninvestment roadmap, the needs of stakeholders andharness innovative technological developments to meetthem.
The grid is key to achieving decarbonization targets. In
2022, we presented the Net-Zero strategy for grid activity to counter direct emissions inherent in the infrastructure, acting on digitization, remote operations, the useof electric vehicles for work, measures to protect biodiversity and reducing technical grid losses. In addition,
we are engaging suppliers, equipment manufacturers
and construction companies in our supply chain to reduce indirect emissions and implement more sustainable
processes and network components, such as SF6-freeswitchgear, vegetable oils for transformers and environmentally friendly or standard cables for sustainable construction sites.

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Over the past year, we have entirely rethought the value
chain by applying the concept of Sustainable by Design,redesigning the production and end-of-life management
processes of grid assets with the aim of decreasing raw
material consumption, maximizing economic value and reducing environmental impacts, including greenhouse gas(GHG) emissions.
A Sustainable Reference Model tool has been developed
which, integrated into our digitalized systems, makes it
possible to monitor the number and type of solutions implemented at all active or opening sites and to measure
their impacts, along four lines: decarbonization, social,environmental and circularity. The score associated witheach solution makes it possible both to identify the mostvirtuous sites (ex post evaluation) and to carry out simulations (ex ante evaluation) to facilitate the choice of solutions to be implemented.
In order to make the value chain circular, we also defined
Grid Mining & Zero Waste strategies, to review the endof-life management processes of grid assets in a moresustainable way and identify New Life Cycle practices (recycling and reuse of materials at the end of their life). In
this regard, in order to ensure complete tracking of thematerials contained in grid assets, we have developed the“Digital Product Passport” in our systems, which enables
us to monitor any materials considered critical, for which
it might be useful to evaluate an alternative, but also todefine ex ante the end-of-life reuse scenarios. Having an
integrated and digitalized tracking system along the entire value chain is the driving force toward the ambition to
open our “mine” (grid mining) to the outside world as well,1

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making it available to other companies or different sectors in order to involve their respective production chainsand feed new markets for raw and secondary materials,
promoting the development of the area and the saving ofvirgin materials, and creating new job opportunities related to waste material recovery initiatives while minimizing
environmental impacts. More details can be found in thechapter “Circular economy” in this document.

rials to traditional cement with a high clinker content witha high impact in terms of avoided emissions of up to 80%.
Meanwhile, by way of application of the grid mining strategy, experiments continue on the reuse of composite
material from wind turbines for the production of certain
grid components and on the identification of solutions
for the reuse of wood waste from logging near overheadlines.

Achieving such ambitious goals necessarily requires joint
multi-stakeholder action, involving suppliers, partners,
competitors, industry grids, etc. In the spirit of OpenPower, we have:• founded the Open Power Grids Association, whichaims to share and develop grid-related technologies
and methodologies with industry stakeholders in orderto accelerate the adoption of safer, more efficient andsustainable solutions for faster achievement of the requirements towards the zero-emission ambition;• launched specific challenges on the crowd sourcing
platform openinnovability.com, covering, among otheraspects:– a new concept for the design of the primary andsecondary substations, as well as for the smart meter installed in end user’ homes, whose development
and large-scale adoption will lead to a significant reduction in environmental impacts;– the identification of low-emission gensets to be
used for emergency management or in all cases
where they are needed for the operation and maintenance of the grid;– alternative technologies for the construction phaseof traditionally concrete assets such as 3D printing.
In addition, tests were conducted on a new design of distribution infrastructure supports using alternative mate-

In 2021 Gridspertise was established, a new industrial
and commercial entity that offers innovative, flexible,
sustainable and integrated solutions to electricity anddistribution operators (DSOs), presenting itself to themarket as a reliable partner to boost the digital transformation of power grids across the industry ecosystemas part of the energy transition. The priority areas foraction are:• meter and grid edge digitalization, focused on increasing customer engagement and stakeholder participation through smart meters and grid edge technologies that also enable engagement in electricity
prosumer markets;• digitalization of grid infrastructure, aimed at increasing the intelligence and flexibility of power grids to accelerate full-scale digitalization, increasing efficiency,
reliability and service quality and supporting DSOs tomanage the challenges facing network operations;• digitalization of field operations, to increase operational efficiency thanks to innovative solutions forplanning and operational processes and, at the sametime, to increase the safety of internal and external
operators in the field.
In October 2022, an agreement was signed for the saleof 50% of Gridspertise Srl to the international private
equity fund CVC Capital Partners Fund VIII (CVC).

Record distributed renewablegeneration capacity with 5.6 GW
connected to its grids in 2022
By 2022, we will have connected to our grids a record
nearly 5.6 GW(1) of distributed renewable generation
capacity equivalent to more than 400 thousandproducers and prosumers worldwide, including more than
300 thousand in Europe and the rest in Latin America.(2)This gives us a global cumulative capacity of 65.7 GW,(3)equivalent to approximately 1.4 million producers andprosumers. These results were achieved thanks to
the increasing capacity to accommodate distributed
renewable generation (hosting capacity) and the high levelof digitalization of the distribution networks operated byEnel.
For further details, see section “Renewable energies“ inthis chapter.

(1) Including about 300 MW corresponding to Enel Goiás in Brazil, sold at the end of December 2022.
(2) Including about 35,000 producers and prosumers added by Enel Goiás in Brazil, sold at the end of December 2022.
(3) Including about 700 MW corresponding to Enel Goiás in Brazil, sold at the end of December 2022.

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Electrification of uses
3-3

EU3

DMA EU (former EU23)

321.1 TWh212

ELECTRICITY SOLDCOMPLAINTS (NO./10 THOUSANDCUSTOMERS)

309.4 TW in 2021 +3.8%

22.6 thousand

45.8 million

OWNED PUBLIC CHARGING POINTSEND USERS WITH ACTIVE SMART METERS

18.1 thousand in 2021 +24.9%

45.2 million in 2021 +1,5%

Customers

Electricity market

Gas market

Total

no.

60,225,898

6,558,997

Italy

no.

21,382,665

4,581,245

Iberiano.

10,545,281

1,798,737

Rest of Europe and North America

no.

2,905,352

178,993

Latin America

no.

25,392,600

22

The final number of energy and gas customers was close
to 67 million in 2022, down slightly from 2021, while energy
sales amounted to 321.1 TWh in 2022 (309.4 TWh in 2021).

760 MW

8.5 GW

STORAGEDEMAND RESPONSE

375 MW in 2021

7.7 GW in 2021 +9.9%

Customer centricity
The leadership of a company like Enel necessarily passes
through customer care and attention to quality service,aspects that refer 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.
We aim to maximize value for customers on a daily basis:• through a robust business model that focuses on thecontinuous improvement of efficiency, effectiveness and172

Sustainability Report 2022

resilience in process management (activation of newservices, billing, payments and credit, customer focus)
and digitalization.
• making them more aware with offers geared towards increasing awareness of their consumption, different timeslots, rewards for reducing consumption compared tothe past, clear and simple communication;• proactively managing their needs;• accompanying them towards electrification.

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Listen actively
Deeply understanding our customers and treating everyone with respect and kindness, taking their needs to heartand solving them with concrete solutions. We have consolidated activities focused on measuring and monitoringcustomer satisfaction and happiness, as well as analyzing
feedback to integrate the customer’s point of view into theoverall management of business processes.

Make life easier
Adopt an understandable language and always keeppromises, respecting your customers’ time and always
working efficiently.
In order to simplify the experience of our customers, in
2022 we developed a specific platform to standardize
and optimize internal processes, aware that in order tobe able to offer efficient solutions to our customers, wemust first simplify ourselves, also by using comprehensible

language, free of technicalities. To this end, we launched
the Plain Language project, aimed at simplifying the communication language used through the different channelsof customer interaction. In Spain, the new global app waslaunched to offer a higher level of customer experience.
These actions have improved the efficiency of operations
with a major impact on reducing complaints and optimizing operating costs.

Build the future
Accelerating electrification, anticipating customers’ needs
and offering sustainable solutions for families and businesses, accompanying them with honesty and determination to earn their trust.
Data-driven decision-making, an agile approach to design,
customer centricity based on inclusiveness and accessibility, digitalization and simplification are the levers to generate value for customers and the Company.
Over the past few years, new payment methods have been
introduced, digital channels have been strengthened, andcustomers have been provided with tools to control theirconsumption and improve energy efficiency, with a view toencouraging their participation in the Net-Zero transition.

Enel also focuses on the future, through open and sustainable innovation partnering with start-ups to engage
customers towards a digital profile, standardize processes,
personalize the service and ensure transparent and reliable information. We involve customers in the testing andco-design of new services, including through neuroscience and biofeedback tests in collaboration with universities and research centers.
We put customers at the center of the energy transition,offering a comprehensive product portfolio, commodity
and beyond commodity, and a unique customer experience that ensures no one is left behind.

Customer satisfaction
2-29

3-3

417-1

“On a scale of 0 to 10, would you recommend Enel to yourfamily and friends?” This simple question is the basis for
the Net Promoter Score (NPS), which allows us to measurecustomer satisfaction globally through simple and immediately understandable data. It is calculated, in a range
from -100 to +100, as the percentage of “promoters”(score of 9 or 10 out of 10) minus the percentage of “detractors” (score between 0 and 6 out of 10). Customers areinterviewed by e-mail twice a year to maximize responses
and to monitor trends over time.

We complement NPS, monitoring transactional aspects
aimed at detecting overall satisfaction during some of themost sensitive phases of the customer experience (suchas activation completion, contact center interaction, billdelivery, etc.). We survey our customers by e-mail to measure their level of Customer Satisfaction (CSAT), using aninternational standard that is based on the question “Ona scale of 1 to 5, how satisfied are you with the ‘momentof truth’”?(4) The total is calculated as the average of all responses received. During 2022, CSAT survey coverage was(4) Significant events in the relationship between customer and Company (e.g. completion of activation, interaction with the contact center, delivery of theutility bill, etc.) that determine the customer’s opinion and evaluation of the service.

Clean electrification

173

completed in Italy and Spain (30 “moments of truth” perCountry), is ongoing in Brazil (8 “moments of truth”) and isabout to be launched in 2023 in most other markets.
Thanks to the continuous feedback from the customer
base, the dedicated Customer Happiness team and theconstant monitoring of happiness and satisfaction val-

ues and insights – now integrated into the operational
processes of Activation, Billing, Credit and Collection andCustomer Care – 2022 saw Enel achieve a solid increase in
Global Net Promoter Score (weighted average of all NPS
values at country level), from -2.8 in December 2021 to+5.6 in December 2022.

Complaints management
2-25

2-26

2-29

3-3

In 2022, guidelines on the complaints monitoring and classification process were implemented in all countries where
we operate, in order to maximize service quality and increase customer satisfaction, in accordance with applicable laws, regulations and governance rules. Our aim is
the convergence of the current processes towards a common, effective and efficient model, through continuous
performance monitoring and the development of internalbenchmarking, aimed at highlighting a non-conformity on
an existing product/service/functionality, which cannot be

resolved immediately (First Contact Resolution) and therefore requires further work by the Complaints Back Office.
In addition, we have worked to standardize the monitoringand quality control of complaints management with homogeneous operating methods to make the performanceof the Group’s different countries of presence comparable,
also thanks to the creation of a global platform that enables
monitoring of indicators and trends while at the same timeensuring the correct classification of complaints handled.

Focus on vulnerable groups
2-29

3-3

DMA EU (former EU23)

We want to remain attentive to the needs of citizens, improving and maintaining access to electricity in the mostdisadvantaged areas and among the poorest populations.
All the countries in which the Group operates in fact provide forms of support, often linked to state initiatives,
which make it easier for certain sections of the population

to pay electricity and gas bills, thus allowing equal accessto energy. For further details on initiatives dedicated to vulnerable customers, please refer to the “Value for Disability” project in the “Managing human rights” chapter of thisReport.

Transparent relations
3-3

417-1

DMA EU (former EU24)

In line with its commitments to mitigate the effects of climate change, our Group has intensified the process ofdigitalizing customer relations.
During 2022, digital services were further expanded, including the promotion of digital bills and payment channels with the possibility of flexible installment plans.
The emphasis was placed on developing and marketinga digital solution with simpler and more transparent bills.
In 2022, thanks to e-billing, 30% of bills globally was sent
electronically. This not only reduces the costs of paper,
printing and delivery of traditional bills, but also the CO2
emissions associated with all these activities.

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By leveraging state-of-the-art technology standards, telephone customer service in Chile, Colombia and Peru wasstandardized. Thanks to a global control center, it is possible to monitor the flow of calls and manage their routing
to available operators in order to minimize waiting time forour customers. In addition, the operating methods, defined at global level, tend to the highest quality standards,
standardizing the “tone of voice” and style of handlingcustomer issues.
Thanks to a data-driven approach and continuous benchmarking of best practices, both from energy companies
and other leading digital industries, the following three

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2

We empower sustainable progress“Customer Centric Behaviors” have been defined in order
to offer our customers simple, innovative, sustainable, fastand effective solutions, through a clear language that isaccessible to everyone:• listen actively,• make life easier,• build the future.
The focus on Customer Happiness takes shape when wecall into question all those emotional factors that, parallel to the more rational ones related to the choice and“confirmation” of a brand, are built on a more human interaction in relation to the brand and its advocates. We
want to exceed our client’s expectations by optimallybalancing the ratio of costs incurred against benefits received, thereby increasing the likelihood of a more stable
and lasting relationship. Enhancing the perception of ourwork with an effective and efficient service leads to thebuilding of a long-lasting relationship. Not only that: byfocusing our energies on Customer Happiness we also

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optimize satisfaction, provide more stability in securing
the Company’s market share and give more support topricing policies.
Enel complies with current customer privacy regulations
in all the countries where it operates. We also strive 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, forexample sales services or customer happiness surveys.
Customer data is an expression of the individual’s personality and identity, and must therefore be treated withdue caution and guarantees. Enel considers personal data
to be a shared and corporate asset at the same time. For
this reason, we have appointed a Data Protection Officer
who aims to guarantee full respect for the privacy of all
the individuals with whom we interact. For further details,
see the “Sound governance” chapter of this document.

Energy-saving commercial offers,
products and services
3-3

DMA EU (former EU24)

As a result of rising energy prices, the topic of energy saving has become even more important in 2022, and in all
countries where we operate, efforts have been stepped
up to make energy efficiency solutions available that canguarantee customers savings in terms of both consumption and CO2 emissions. From household appliances tosmart home solutions, from home services to heating
and air-conditioning systems, from solar-powered systems to charging infrastructures for electric cars, solutions have been developed to help save energy, time andmoney. Among the proposed solutions we find Homix, thesmart home solution to manage temperature, lighting andsecurity easily and intelligently in the home, optimizing
consumption on the basis of the habits and needs of thefamily. Induction hobs that replace traditional gas cookers
and enable the cooking of food in less time, with almost
twice the energy efficiency of gas cookers, greater safety and significant CO2 savings. Enel X Sun Plug&Play is theinnovative flat photovoltaic system that can be installed

on a balcony or on the façade of a building at a window,
allowing the energy generated by the sun to contributeto the home’s energy needs, saving up to 20% on energy
bills. Heat pumps use thermal energy from air or water forheating and cooling and are up to four times more energy
efficient than the best boilers, saving around 40% on utility
bills. Another product that is of great importance for energy freedom is rooftop photovoltaics with a storage system:
it harnesses solar energy to generate electricity, saving
money on electricity bills through self-consumption andenergy storage. In fact, the system stores in batteries theexcess electricity generated by the photovoltaic system
during the day, making it available during the night when
the system is not generating, thus significantly reducing
energy drawn from the grid and consequently costs on thebill.
In 2022, Enel X installed a total of about 73,000 Smart
Home products and more than 5,000 photovoltaic products that contribute to energy savings and efficiency.

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From need to solution,customer-driven change
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Encouraging the active participation of customers in thetransition, the development of new services, a better understanding of their consumption and greater control over
it is the basis of our daily commitment.
We aim to develop innovative technologies that make theuse of clean electricity increasingly affordable and widespread in homes (B2C), businesses (B2B) and the public
sector (B2G), while accelerating the digitalization of services for more efficient energy use.

Businesses: B2B (Business To Business)
Our ambition is to be able to become a partner to companies and guide them towards the use of customized
integrated solutions, starting from a simple consultancy
to the implementation of articulated solutions such as
self-generation of electricity, installation of trigeneration plants, products and services for energy efficiency
and energy demand management solutions. We aim to
optimize costs and consumption, to create value where
it was not possible before, taking advantage of technological evolution and making businesses increasingly sustainable.

Among the most notable achievements in 2022 is the reaffirmation of our leadership in flexibility services, i.e. theservice that allows companies to reduce their energy consumption temporarily or provide their own on-site generation in order to offer this flexibility to serve grid stabilization(balancing electricity supply and demand) and receive remuneration in return. In fact, we managed 8.5 GW of capacity worldwide on behalf of our customers.
We have also installed 87.8 MW of power solutions thathave enabled our customers to self-generate renewableenergy.

DISTRIBUTED GENERATION

Enel X’s largest distributed solar generation projectin the world: Itaú Unibanco

Francisco Scroffa
Head of Enel X BrazilIn August 2022, we signed an agreement with Itaú Unibanco, one of the largest private banks in Latin America, for the installation of 46 photovoltaic plants witha total capacity of 54.7 MWp. It is one of Enel X’s largest
distributed solar power generation contracts in the world
and will be used to power 1,557 branches in 14 locationsin Brazil (representing about 80% of the Brazilian bank’s

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“Two large companies with complementary strategies
have found the opportunity to work together, with an
integrated strategy, despite coming from different
sectors. Enel X is able to propose diversified solutions,
meeting all the needs of Banco Itaú and guaranteeingsavings, energy efficiency and sustainability.”branches) with renewable energy. Enel X will facilitate
Itaú’s energy transition in support of its commitment tobecome a zero-emission entity by 2050. Itaú Unibanco
is present in 8 countries besides Brazil, with 90,000 employees and 60 million customers. It operates mainly in
Brazil, but its international presence allows it to provide
high-quality services to local and Brazilian clients abroad.

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In addition, the implementation of the Utility Bill Management (UBM) platform will enable it to:• digitalize the management of corporate payments;• organize information on service providers’ accounts;• monitor the energy and water consumption of the 1,557
business units;• monitor sustainability indicators.
Enel X’s distributed energy system will enable Itaú to generate its own energy with significant cost savings on its
bills and more efficient management of the company’s
accounts. In addition, the use of sustainable energy will

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avoid the emission of 10,000 tons per year of CO2, thus
embarking on the road to carbon neutrality by 2050.

TELEMEDICINE

Smart Axistance e-Well.

Alberto Piglia
Head of e-Health Enel X

Smart Axistance e-Well is the innovative application that accompanies users on a path to personal
well-being and aims to help improve lifestyle andmonitor key health risk factors. The use of the e-Well application is extremely simple despite encompassing years of
medical-scientific research and cutting-edge technology:
simply download the app, fill in a questionnaire on your initial health status and perform the check-up, either at Policlinico Gemelli or completely digitally. Thus commences a
year-long wellness journey.
The distinctive elements that characterize the innovativeness and sustainability of Smart Axistance e-Well can besummarized in five areas:• Customization. The Smart Axistance e-Well wellness
program is fully customized to suit people’s needs, characteristics and lifestyles and includes a nutrition program and a physical activity program.
• Medical partnership. It is made possible by the combination of Enel X’s technology and the medical expertise of
the doctors at Policlinico Gemelli, Italy’s leading hospital
according to Newsweek’s World’s Best Hospitals 2022

“Enel X’s mission is ‘to discover, nurture, fuse andperfect cutting-edge technologies and services inorder to improve and make people’s lives easier’.
This is why Enel X intends to meet customers’ newneeds related to the world of Health: to have themedical advice they need anywhere, any time and inany condition. Platforms and services, in turn, mustcomply with the principles of sustainability andcircular economy.”ranking and an internationally renowned medical-biological research center.
• Wellness areas. It considers the main health risk factors,
recognized by the American Heart Association, such as
physical activity performed, diet followed, sleep, smoking and mood.
• Video consultations. In the Smart Axistance e-Well program, the relationship between doctor and user takes
place via video consultations: it is therefore digital, without geographical barriers..
• Innovative technologies.
Smart Axistance e-Well is
an application developedon the basis of the mostadvanced technologies
and integrates its
functionalities withsmartbands for monitoringvital parameters.

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The public sector: B2G (Business To Government)
The offerings for the public sector aim to make cities“smart” environments, accompanying them on a path ofelectrification and digitalization, through the integration ofsolutions aimed at efficiency and the improvement of services in favor of the public’s well-being and the reductionof polluting emissions.
We accompany small and large municipalities in their transition towards an innovative smart city model, providingthem with a portfolio of solutions aimed at improving the
integration and interconnection of their services.
For example, using state-of-the-art technology, we aim totransform street lighting into a smart, multifunctional andefficient infrastructure (sensors, cameras and electric car
charging points) for the safety and convenience of the
public and at all times connected with a digital platform forremote, real-time management and monitoring.

In addition, we promote solutions for the electrification ofurban transport and public building efficiency that optimize the energy performance of buildings while opening
up the possibility of active participation in the flexibility
services already described for B2B customers.
With a view to facilitating the control and managementof the solutions active in their region, we provide government authorities with a single digital access point, Enel X
YoUrban, which allows them to monitor the status of theirinfrastructures, visualize performance indicators and stayconnected and informed on the new technological possibilities offered by the market.
During 2022, we achieved major milestones in the efficiency of public lighting by installing more than 3 million LED
lighting points and operated more than 5,321 electricbuses worldwide.

ELECTRIC BUSESThe Enel X TransMilenio Project

Lucio Rubio
General Manager of Enelin ColombiaIn 2022, we completed the construction of the fifthelectroterminal in Colombia, Fontibón – Escritorio,
one of the largest in South America. It will serve 172
electric buses thanks to an electrical infrastructure withan installed capacity of 13.6 MW, and boasts more than
80 stations dual plug charging stations of 150 kW eachprovided by Enel X Way, another Group company whose
mission is focused totally on electric mobility.
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“We are proud to be part of this project because,by providing the charging infrastructure forthe new bus fleet, we can contribute to thedevelopment of electric mobility, the energy
transition and the transformation of Bogotá into asmart and sustainable city.”

public transport administration body of Bogotá’s Capital
District, and is intended for the public transport operator
Mueve Fontibón SAS.
It is the first large-scale electric mobility infrastructure in
Colombia, contributing to the decarbonization and thetechnological and sustainable development of the capital Bogotá. Bogotá’s e-buses have enabled the municipal
administration to reduce emissions by 600 tons of CO2
per year. Six electroterminals capable of charging buses in a few hours have already been opened throughout
the city in Fontibón Escritorio, Fontibón Refugio, Fontibón
Aeropuerto, Suba Las Mercedes and Usme, serving 878
electric buses with 412 smart chargers. In addition to thepartners already mentioned, there is the bus manufacturer, BYD.

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SMART AND EFFICIENT PUBLIC BUILDINGSThe Mateu Orfila HospitalDavide Ciciliato
General Manager of Endesa XEndesa X built the first car park of a hospital coveredby photovoltaic panels in the Balearic Islands (Spain).
The project enabled the Mateu Orfila Hospital tohave up to 976 kW peak power (kWp) in 100% renewableenergy for its own consumption. The installation, located“Endesa X wants to be the energy partnerof cities to help them achieve theirdecarbonization goals. We put all our
knowledge of the energy world at their disposal
to realize cleaner cities that save as muchenergy as possible. The Mateu Orfila Hospital isan example of this.”in the hospital’s 15,000 m2 car park, will help to reduce thehospital’s carbon footprint significantly, supplying 20% of
the electricity consumed by the hospital and saving around€160,000 per year, according to the Balearic Islands government’s Energy Transition Department.

Residential customers: B2C (Business To Consumer)
Our goal is to simplify and improve people’s lives, throughintegrated solutions that combine convenience and efficiency and offer greater insight into consumption andconsequently greater control over it, to enable residential
customers to electrify their usage and participate in thechange taking place, with an awareness of how their individual choices contribute to the transition.
Our solutions therefore accompany customers along thispath, guaranteeing greater independence in the supply ofenergy through easily accessible distributed energy products such as Enel X Sun Plug&Play rooftop and balcony
photovoltaic panels. Alternatively, they can optimize theirconsumption, such as through the Homix smart thermostat, which optimally manages home heating, memorizing
the family’s habits and automating it according to different needs, also managing lighting and home security in
an intelligent way, thus transforming it into a true smart
ecosystem that saves consumption and respects the environment.
A commitment that resulted in the sale of 73,000 Smart
Home products and over 5,000 photovoltaic products
within a consumer customer portfolio that exceeded 63
million units globally.

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RENEWABLES AND SOLIDARITY ENERGY#UnPannelloInPiù: photovoltaics for installation onapartment buildings can make a difference

Stefano Ciafani
National Presidentof Legambiente

A fund-raising campaign
promoted by Legambiente
together with Enel X
dedicated to the fightagainst energy poverty andthe social and economic
impact that solar homepanels can have.
“With the #UnPannelloInPiù campaign that sees
us alongside Enel X, we want to offer a concrete
response to high utility bills and social inequalities.
It is important to give the public a structural
welfare solution with tools for self-generation fromrenewable energy that can bring lasting benefits,
both from an economic and social point of view
as well as from an environmental protection pointof view, while also combating energy poverty that
already affected more than 2.2 million households
in our country before the pandemic.”H

ow can we fight high energy prices and reduce thecost of utility bills? One of the simplest and mostpractical solutions comes in the form of photovoltaic installation on apartment buildings: cheap, easy toinstall and activate, and able to cover the consumption ofcertain household appliances, such as the television, refrigerator or air conditioner, with bill savings of up to 20%,
while also generating environmental benefits. In fact, thistechnology makes it possible to generate clean energy,
contributing to combating the climate crisis and reducing atmospheric pollution: it avoids the emission into theatmosphere of 103 kg of CO2 per year, equivalent to theamount of CO2 absorbed by about 6 trees.
For these reasons, in June 2022 Legambiente, together with
Enel X, launched the fund-raising campaign “#UnPannelloInPiù” with the dual objective of helping families in needand informing and raising awareness of the great potentialof this type of panel. With a simple donation on the Le-

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gambiente website, individuals, associations and businesses were able to contribute to the purchase of photovoltaic
panels for installation on apartment buildings for families in
economic and social difficulty. The crowdfunding initiative
was accompanied by a touring campaign that made stops innine Italian cities from June 8 to 27, 2022. These were Naples,
Brindisi, Palermo, Rome, Cagliari, Florence, Turin, Milan, andBologna. The event included a series of events aimed at raising awareness of all the tools that exist today to reduce utility bills, including the role of solar photovoltaics in the fightagainst energy poverty, as well as savings and efficiency, energy communities, social bonuses and the sharing economy.
In substance we are dealing with an inexpensive, easy-to-install and easy-to-activate solution that facilitates access tosolar technology by making it truly affordable for everyone.
Since its launch, the campaign has raised more than 80,000
euros, which will be used to donate apartment photovoltaic
systems to families in a state of energy poverty.

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Energy communities
Renewable Energy Communities (or RECs), recently introduced into our legal system, are associations of companies, businesses and members of the public who decide tojoin forces to equip themselves with one or more plants forthe virtual and shared generation and self-consumption ofelectricity from renewable sources, achieving economic,
environmental and social benefits.
Enel X and Enel Green Power offer stakeholders the solutions and services to bring the energy community to lifeand make it grow in a virtuous way: from the constructionof photovoltaic plants to the creation and technical-economic management of the community itself, from monitoring the community’s state of service to stimulating theelectrification of consumption through efficient technologies (heat pumps, induction hobs, etc.) and digital platforms. All with a view to making every energy community atruly efficient and sustainable ecosystem.
In Italy, thanks to current legislation (still awaiting Executive
Decree), it has become possible to set up a condominium

Blufi: a reality projected
towards the futureBlue Green Energy. This is the name of the project joinedby Blufi, a small village located 800 meters above sea
level, right in the heart of the Madonie Mountains, inthe province of Palermo (Italy). A small village of about
a thousand inhabitants that in the springtime sees
the surrounding fields transformed into a carpet ofthousands of wild red tulips. This “Little Holland” hasdecided to accept Enel X’s proposal to found the first“inter-municipal” Renewable Energy Community, which
will involve five other municipalities in the Madonie:
Bompietro, Castellana, Geraci, Petralia Soprana andPetralia Sottana. Specifically, the project includes thephotovoltaic system and allow all condominiums to takeadvantage of it, thus creating an excellent opportunity totake advantage of a shared space that until now was almost unusable for the benefit of all.
The program involves the construction of a 10 kWp photovoltaic system for each condominium staircase, reachinga total installed system of 60 kWp, or generating about
70,000 kWh/year in total. A self-consumption of 62,300
kWh per year is estimated, which ensures the abatementof about 30 tons of CO2 emitted. An estimated reductionof more than 60% in electricity use from the grid is expected, with clear benefits in terms of savings for apartment
blocks. The project is not only limited to the generation andself-consumption of apartment block energy, but aims tooffer a shared mobility and charging service. It would increase the overall consumption of the apartment buildingby 15-20% and the solution can also be implemented inexisting, balanced situations.

construction of three photovoltaic plants on the roofs
of municipal school buildings, with a total capacity of 64
kWp, to which others will be added as soon as possible, bygovernment-run or private entities.
This will result in the generation of around 90,000 kWh
per year of clean electricity, which will be shared with an
original core of 16 members. This will bring the following
benefits:• environmental, reducing emissions by about 29 tons of
CO2 per year;• economic, thanks to the provision by the Gestore dei
Servizi Energetici (GSE – Energy Services Operator)of a bonus of €15,000 per year (for 20 years) to be
distributed among the members of the community;• social, with a concrete contribution to savings on
expenditure and reducing energy poverty.

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Electric mobility to accelerate
the energy transition
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DMA EU (former EU24)

We actively promote electric mobility as a key factor in reducing road transport emissions and contributing to theachievement of the European Union’s energy efficiency
goals.
Mobility is also a critical aspect of social inclusion and an
important determinant of human well-being, especially fordisadvantaged groups. Indeed, recognized as an essential service in the European pillar of social rights, transport
meets a fundamental need in enabling citizens to integrate
into society and the labor market.
We believe that an ecosystem of interconnected, intelligent products and services needs to be developed tospread the world of e-mobility. Our aim is to improve, simplify and make the world of e-mobility accessible, and to
do this we have developed smart charging solutions to suitevery need.
Our journey in this direction started a long time ago, but
in 2022, in order to cater to the rapidly growing market,
we decided to create a separate Business Line, Enel X
Way, fully dedicated to the expansion of infrastructure forcharging electric vehicles, the development of advanced
charging technologies and flexible solutions to improvethe customer experience and support the electrificationof transport for consumers, businesses and cities.

New frontiers of electric mobility:e-boating in Portofino

Lorenzo Rambaldi
Head of Innovability Enel X WayO•

ur goal is to make electric mobility affordable and increasingly efficient, including in areas such as:
Urban Air Mobility (UAM): we have signed an agreementwith Urban V, the company founded by Aeroporti diRoma, to develop efficient and effective charging solutions for electric vertical take-off aircraft, the air mobilityof the future;• electric boating: we have developed charging infrastructure for electric boats now present in Portofino andCernobbio (Italy) and on Lake Tahoe (California).

The electric boating market is booming, driven in part byincreasing customer interest in sustainable tourism that
reduces air and noise pollution, among other things.

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“Through this installation we give continuity to our
project of having a comprehensive infrastructure forthe marine sector, both on the sea and on the lake.
Equipping ourselves with these new technologies
allows us to enhance the area and increasingly turnour sights toward sustainable tourism.”

It is precisely in this context that Enel X Way’s initiative tosupport the Ligurian municipality’s “Portofino Carbon Free”
project was born, thanks to which a fast charging infrastructure for electric boats located at Molo Umberto I is
now operational. This initiative represents a tangible signof Enel X Way’s commitment to an increasingly sustainable
future for the area.

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The transition to a decarbonized economy passes
through sustainable transport for all
The full transition to e-mobility will only be possible
through the widespread deployment of safe, reliable anduser-friendly charging stations. This is why we have developed a wide range of public and domestic charging infrastructures, capable of charging electric vehicles anywhereat any time. We have also developed a business model thatspans from the installation and management of charging
points, the so-called Charging Point Operator (CPO), in
which we already rank among the most pervasive companies in the world, directly managing more than 22.6
thousand public charging points, the provision of directelectric charging services to end customers (Mobility Service Provider – MSP), through more than 260,000 charging
points, accessible through the Enel X Way APPTM.
Our solutions in the public sector are the Enel X Way
WaypoleTM, for charging up to 22 kW in alternating cur-rent, while for electric mobility on roads with a high volumeof traffic, we have launched the Enel X Way WaypumpTM,
which, thanks to a modular approach, can reach powers
of up to 350 kW(5) in direct current, enough to charge anelectric vehicle to 80% in about 15 minutes.
In the private sector, on the other hand, we have developed the Enel X Way WayboxTM to meet domestic charging
needs. This can detect the consumption of other household appliances connected to the home meter, so that the
maximum available capacity is never exceeded. In the worldof relevant business offerings, there is the Set&Charge
solution, which enables the creation of shared value for
our B2B customers, allowing them to turn their charging
infrastructure also into a source of revenue by making it
available to the public and setting their own service tariffs.

Guillermo Fumanal Achon
Head of Sustainability Enel X Way

Circular by design
by Enel X Way“Circularity is a natural feature of ourdesign, as we know that the use ofinnovative and sustainable materials
increases the resilience of our productsupply chains, mitigates impacts on thegeopolitical and social front (less needfor materials, less exposure to the riskof human rights violations), and finallyallows us to foreshadow ourselves as a
Net-Zero company.”

The Group’s circular strategy is also applied in Enel X Way. Our main AC
charging products use recycled polycarbonate as the main material (100%for Waybox and 75% for Waypole). In addition, we have optimized the useof raw materials on our WaypoleTM and have reduced the overall productweight by about 32%.
Another example of a circular solution we have implemented is therecovery through remanufacturing of end-of-life components to bereused as spare parts.

(5) For vehicles with 800V batteries (under the plan only Audi, Kia, Hyundai, Genesis, Porsche, Volvo, Polestar, Stellantis, General Motors, BYD and Lotus have so
far announced or launched electric cars with this feature).

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Increasingly inclusive mobility
There is no real revolution in mobility if it is not truly accessible to everyone. That is why we promote and devise
solutions that solve all mobility needs, so that even people
with disabilities or reduced mobility conditions can benefit
freely and independently from the opportunities offeredby modern e-mobility, starting with the charging infrastructure. Our charging points dedicated to electric vehi-

cles can now also be used to charge electric wheelchairs,
thanks to our Enel X Way Wayability device, a charging
cable that enables use of the same infrastructure dedicated to electric cars. In this way, can take advantage of any
charging point by booking through our app in the same
way as for electric cars.

Creative common
Universal Design
When it comes to designing electric car charging
points, we cannot overlook motorists and passengers
with reduced mobility. This is why our infrastructure
has been redesigned in cooperation with ANGLAT(National Association of Transport Handicapped
Drivers) on the basis of an inclusive design, called
Universal Design, which provides parking stalls withan additional signposted maneuvering area forwheelchairs and bollards to protect the charging
stations from impacts resulting from any incorrect andaccidental maneuvers. In addition, the charging cableis lighter, so that it can be handled more easily
by wheelchair users.

E-mobility
Emission Saving
Over the past year, Enel X Way has adopted thecalculation methodology of the “e-mobility Emission
Saving Tool 4.0” version, the tool developed to provide
evidence of the organization’s commitment to sustainablemobility through the electrification of the vehicle fleet
on the road. The algorithm was certified by RINA on
December 28, 2021 according to the principles set out inthe UNI EN ISO 14064-2:2019 Greenhouse gases Part 2
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On the occasion of the International Day of Persons
with Disabilities on December 3, 2022, we made theintellectual property of Universal Design accessible for
free, allowing anyone to download our guidelines directlyfrom our website.

the previous version, quantification of the environmental
benefit in terms of CO2eq (CO2, CH4 and N2O) savings.
Version 3.0 of the tool already made it possible todetermine the savings, generated by the distribution of
public and private charging stations on the territory, ofCO2, equivalent trees per year, pollutants (NOx, PMx), noise
and the associated economic quantification on healthand environment. Compared to 2021, there has been
an increase in the energy delivered by charging stations
resulting in a significant increase in CO2 savings, due
to the increased deployment of both electric vehicles
and Enel X Way’s public and private charging points
connected to the grid.

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Promoting access to energy
and combating energy poverty
3-3

DMA EU (former EU23)

Access to energy is a challenge and a primary need asstated by the United Nations SDG 7, which aims to ensure access to affordable, reliable, sustainable and modern energy systems for all, due to the role they play as adriving force for fighting poverty and ensuring long-term
economic and sustainable growth.
In its “Energy Progress Report” 2022, the International
Energy Agency (IEA) reports that, at the current rate, theworld will fail to meet the targets of SDG 7 by 2030. In
recent years, it reads, there has been a slowdown due tothe increasing complexity of reaching remote unassisted
populations and the impact of the Covid-19 pandemic.
The latter, in particular, continues to hold back economic
development, which is also weighed down by the energy
crisis triggered by the Russia-Ukraine war.
According to the latest available data,(6) there are still 733
million people without access to electricity, a figure that,
although down from 1.2 billion in 2010, should be read in
conjunction with the fact that the recent slowdown in thegeneral trend has particularly affected the most vulnerable countries and those that were already lagging behind.
At Enel, we are committed to ensuring that as many people as possible have access to energy, both by using traditional means (connections to the electricity distributiongrid) and by developing off-grid solutions, and this enabled us to connect around 690,000 people in rural andsuburban areas in 2022.
In Brazil, 25,800 connections were made in the State of
Ceará through on-grid and off-grid solutions in remoteareas. The project reached 103,200 people from different
isolated communities and traditional populations (indigenous or quilombos).
In Chile, during 2022, 1,900 new suburban connections
were built in the municipalities of Lampa, Pudahuel, Colina and Maipú. Enel Distribución, in alliance with Fundación Techo and Litro de Luz, installed solar lights and a
Wi-Fi point in the “El Esfuerzo 2” camp in the municipality of Cerrillos, as well as offering workshops and training
on renewable energies, entrepreneurship and digital literacy, thus attempting to promote social and economic
development in the camp. Enel Grids is constantly committed to promoting and implementing training activities
related to energy efficiency, electrical risk prevention
for communities and climate change workshops, as wellas carrying out initiatives to improve local employability
such as the development of sustainable lighting in col-laboration with the Litro de Luz foundation, initiatives
that focus on the installation of technical tools that enable the autonomy required to ensure the long-termsustainability of the project. The monitoring process ineach field is accompanied by a context analysis to measure the project’s impact on the sustainability of electrification, as well as to establish a socio-energy analysis of
the communities.
In the recent past, following the widespread increasein the prices of raw materials on international markets,
there has been an increase in consumers who find it difficult to manage the energy expense, especially families
with low incomes.
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 fair andsustainable social-economic development.
In all the countries where we operate we, together withgovernments and local institutions, have always been at
the forefront of the fight against energy poverty and thecampaign to facilitate access to energy for customers invulnerable conditions, through specific initiatives to support the deployment of energy efficiency and responsible
consumption solutions, the modernization of infrastructure and the growth of renewable energy sources, in linewith our sustainable business model and our commitment to an just transition.
In this respect, our approach has two lines of action:
Pro-active actions aimed at anticipating critical situations through:• new offers that restructure the 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 actions when critical situations arise with ad hocinterventions:• suspension/deferral of payments;• access to tax bonuses or credits for customers in economic difficulties or affected by natural disasters.
In 2022, in developing countries alone, more than 182 energy access projects were developed that reached around(6) 2020.

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1851.9 million beneficiaries and roughly 134 related partnerships were in place.
Some examples of projects developed on an international
level are provided below:
Training program on access to energy and social services(Spain). This initiative is based on training courses on issues
such as energy saving and efficiency measures, optimization of the electricity bill, the new Social Bonus and protection against having electricity cut off if the bills are overdue, and is directed towards NGOs and social services sothey are able to improve their consultancy and their efforts
for supporting families living in situations of vulnerability. In
2022 more than 106,000 beneficiaries were involved in the
project, which was developed together with the trainers at
Endesa Energía and with the participation of approximately 100 institutions (NGOs). The purpose of this initiative isto demonstrate the Group’s commitment to vulnerable
groups and to contribute to the fight against energy poverty, improving the relationships with stakeholders, fromlocal institutions, to municipalities and Non-Governmental
Organizations. Involving the NGOs and social services inthe task of observing and fighting fuel poverty increases
their knowledge in order to help vulnerable families and as
a result minimize the barriers to access to energy.

PERU - Enlightening
my community
This is a program that provides clean and efficient energy
to the most vulnerable rural communities close to oursites which currently lack electricity, aiming to contributeto their development and to the improvement of theirliving conditions by opening up a range of opportunities
in relation to education, business development,
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Enel Shares Citizenship Goias (Brazil). In 2022, more than
13,471 beneficiaries were involved in the project that stages workshops and home visits to socially vulnerable families, disseminating information on how to reduce consumption, in line with other social projects carried out by
the Company. The initiative promotes the inclusion of families in public social assistance policies, such as the low-income social tariff, which provides a discount of up to 65%
on electricity bills.
We are committed to promoting access to energy in developing countries not only by supplying electricity, butalso clean, innovative technologies to the population inorder to generate energy that has a reduced impact on
the environment. Approximately 1,364 MW of energy fromrenewable sources was commissioned in Latin America in
2022, increasing the total renewable capacity to approximately 20,808 MW. In Africa, Enel Green Power is currently
the main private operator in the renewable sector in termsof installed capacity (more than 1,500 MW in operation and
598 MW under construction), with a presence in different
countries, including South Africa, Zambia and Morocco. In
Asia, the Group is present in India through its subsidiary
Enel Green Power India, one of the country’s main renewable energy companies, which owns and manages 340
MW of wind capacity, producing approximately 620 GWh ayear in Gujarat and Maharashtra.

and security, thus generating inclusive and sustainablegrowth. The communities we target are located in areasthat are not part of the districts in our concession area,
so they cannot be served as customers. Since 2021, we
have installed renewable hybrid systems at 6 locations in
3 regions of the country, with a total installed power of
30,130 MW, benefiting more than 3,500 people, as well as
educational centers, sports grounds, public lighting, andmunicipal premises, thus avoiding the emission of 52.34
tons of CO2 per year.

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2

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3

Materiality analysis

4

Our performance5

Appendix

Our governance for promoting
access to energy
Our commitment to guaranteeing access to energy is also
confirmed in our 2023-2025 Strategic Plan through thedefinition of specific objectives, including an increase inrenewable sources, the development of sustainable andcircular products and services, engaging local communities through a model for creating shared value (please see
the chapter, “Engaging communities”). The Strategic Plan,
the Sustainability Plan that describes in detail the goals andcommitments from an ESG point of view, including accessto energy and the corresponding financial and non-financial reporting are analyzed and monitored by the Boardof Directors, by means of the Corporate Governance andSustainability Committee and the Control and Risk Committee (see the Corporate Governance report, available atwww.enel.com).

Top management is committed on a daily basis to realizing these strategic objectives by contributing towards
supporting the global challenge of guaranteeing accessto energy. To support Top Management, each Country is
responsible for managing relationships with institutional
bodies, regulatory authorities on a national, regional andlocal level, and associations for promoting the development of solutions for access to energy according to different needs. The Innovability® Function, both on a holding
level as well as a Business Line/Country level, also promotes
the dissemination of a shared value model. It supports innovative solutions that can promote access to energy inremote areas with limited access to electricity.

Clean electrification

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Our commitment
to a just transition:leaving no one
behind188

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Materiality analysis

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Appendix

Enel’s commitment to a Just Transition: to not leave anyone behind
2-24

2-25

2-26

SDG

ple

ns

amb oniti

Doublemateriality• Materiality
analysis process
and results for
2022

Strategy
PeoMaterial topics

ur
e

io
Zero emiss

Nat

Please refer to the following chapters of the Sustainability Report:
1. Zero emissions ambition
2. Empowering Enel people
3. Sustainable supply chain
4. Engaging communities
5. Clean electrification

As early as the signing of the Paris Agreement on Climate
Change, the connection between climate change and theimpacts of the measures taken in response to it were acknowledged by signatory countries in its preamble.
By acknowledging that climate change is a common concern of humankind, signatories were requested, when taking action to address it, to respect, promote and consider
their respective obligations on human rights, the right tohealth, the rights of local communities, children, persons
with disabilities and people in vulnerable situations and theright to development, as well as gender equality, empowerment of women and intergenerational equity.
A just transition is a key tool to ensure that the road to a
climate-neutral economy is equitable and does not leaveanyone behind.
Just transition plans also show the way on how to best address social, economic and environmental challenges, witha specific focus on:• workers directly affected by the transition, who need tobe supported through requalification and/or by a facilitated access to job opportunities in new sectors;• people and society at large, with a particular focus on
the most vulnerable, who need facilitated access to new
1

services, like energy efficiency for buildings, measures tofight energy poverty, and to clean and affordable energy;• business active in high-emitting industries or sectors
who will need to be supported through actions easing the switch to green technologies and leading to an
economy based on climate-resilient jobs and investments, also by spurring the setting up of new companies
and investing in research and innovation;• States and regions heavily dependent on fossil fuels andon high-emitting industries.
Business plays a central role in economy decarbonization
since much of the CO2 emissions causing climate change
comes from business-driven economic activity. It acts as
an enabler of innovation and solutions to prevent, mitigate
and adapt to climate change and its adverse impacts onnature and people.
The role of the energy sector in transitioning away from afossil-fuel based economy is crucial. Producers will needto scale up their contribution in terms of developmentof green technologies, grid infrastructure will need to
be strengthened and digitalized to enable electrification
and an efficient use of energy, and consumers will have to2022 Sustainability Report
Our commitment to a just transition: leaving no one behind189change their behaviors, playing an active role in electrification of uses and contributing to optimization of energy
utilization.
Innovation and circular economy will be vital to limit theuse of newly extracted material thus reducing pressure on
the supply side and mitigating human rights risks.
Finally, inclusive approaches will be key to manage the im-pacts of the major changes green technologies will bringand make sure that the transitions will benefit the broader
society, without leaving anyone behind.
A well-managed transition may help addressing the humanand economic impacts of a changing climate and also foster growth, generate net new jobs and reduce inequality.

Our strategy and our commitment
for a just transition

Ernesto Ciorra
Chief Innovability® Officer

Respecting Human Rights
is a fundamental element
to empower
sustainable progress.

We promote the growth of a constructive dialogue that can really help in an effective way - with tackling the challenges brought by the social
impacts of decarbonization strategies in line with the Paris Agreement,
and we have committed to a just transition that does not leave anyone
behind.
Continuous innovation and embedding of circularity principles arealso cornerstones for building a competitive, inclusive and sustainablebusiness model. Indeed, a sustainable business conduct based oninternational reference standards is key to unlock multiple competitive
advantages, such as increasing talent attraction & retention,
strengthening corporate resilience, meeting customers & civil society
expectations, improving access to stock & capital markets, shaping
regulation & promoting system advocacy.

Every day we work for an inclusive transition by leveraging
engagement of our stakeholders (Enel people, suppliers
and financial and commercial partners, communities in theareas of influence of our operations, our customers, thefinancial community) since we are aware that we belong to
the territory and we are an essential element in the lives ofpeople, business and society at large.
Our contribution to an affordable, secure and sustainableenergy system goes through accelerating decarbonization of our energy production mix, in line with the Paris
Agreement targets, thanks to the development of renewable capacity, coupled with energy storage, and the pro-

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gressive phase-out of thermal generation sources. At thesame time, we are strengthening the role of distribution
networks, which in the future, due to the combination ofgreater use of electricity and greater diffusion of green
technologies, will have to be increasingly reliable and digitalized in order to act as inclusive platforms for all our customers with whom our challenge will be to facilitate theirswitch to electricity for all uses and to new highly-digital
services.
All of this while leveraging innovation and circular economy which act as accelerators of this path since they reduce pressure on materials and technologies critical to theachievement of our goals as well as making it possible for1

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3

business models to evolve in an even more sustainable direction.
Further information is available at “Our strategy for sustainable progress”.
We fully support the principles of a just transition, as outlined in the International Labour Organization (ILO) Just

Materiality analysis

4

Our performance5

Appendix

Transition Guidelines, so that no one is left behind, andwe are aware of the social impact of our decarbonization
strategy, which is in line with the Paris Agreement, andthat we manage by taking into account our overall commitment in terms of respecting human rights throughout
the value chain, as also set out in our Human Rights Policy
which states that:

A fair and inclusive transition does not leave anyone behindand takes into account the needs of all the stakeholders,
and, specifically, the most vulnerable ones.
To this end we:• proactively consider the needs and priorities of people

and wider society because this leads to process andproduct innovation which is key for a competitive,
inclusive and sustainable business model, including the
adoption of circularity principles, protection of natural
capital and of biodiversity;

Human
Rights Policy• promote the involvement of the main external andinternal stakeholders to enhance awareness and develop
a constructive dialogue that can provide a valuable
contribution to the creation of solutions that mitigate
climate change.
(Enel’s commitment to respecting human rights)

At the heart of our strategy is our contribution to building
a fairer and more inclusive society across the whole value
chain, since we believe that our integrated business model
coupled with a sustainable business conduct enables contribution to the 2030 Agenda.
In 2019, we signed the United Nations Pledge Letter onbusiness commitment to a just transition and green, decent jobs and we have committed 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), andproviding wage guarantees, in line with the core and occupational health and safety standards of the International Labor Organization (ILO);• working with existing and new suppliers that respectthese standards, supporting them to increase their resilience in a transitioning economy, while advocating andacting for diversification of the supply chain of technologies critical to net zero achievement;• contributing to the social and economic developmentof local 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, secureand green access to energy.
During the United Nations Framework Convention on Climate Change – COP27, we signed jointly with other 270
corporates and civil society leaders, a declaration reciting“We stand ready to deliver a just transition and an equitable and inclusive future for all. We want to work withgovernments in building an enduring legacy based on ourcollective efforts to secure 1,5 °C”.
We have therefore defined specific plans and lines of work
for a just transition, also at country level, consistently with
the Group’s strategy to decarbonize its generation capacity, with the objectives of the Paris Agreement, with theprinciples of the ILO’s Just Transition Guidelines and the UN
pledge, as well as with the public commitments outlined in
our human rights policy.

Our commitment to a just transition: leaving no one behind191

nities and helping customers to quit conventional technologies;• transition into green technologies, facilitating accessto new job opportunities for direct and indirect workers,
and the development of inclusive and accessible solutions for communities and customers.

The plan hinges on three pillars:• involving internal and external stakeholders to increase
their awareness about a just transition and foster a constructive dialogue that can contribute valuably;• transition out of high carbon activities, supporting thevocational requalification of direct and indirect workers,
developing socio-economic plans for affected commu-

Our plan and our lines of work for a just transition

Plan

Enel people

Supply chain

Communities

Customers

Social dialog, social
protection and wage
guarantees, in line with
ILO standards.

Support for increasing
resilience in thetransitioning economy
and the diversificationof ’net-zero’ criticaltechnologies.

Contribution to socioeconomic development,with a focus on thosetransitioning away fromfossil fuels generation.

Support inelectrification
journey and toaccess affordable,
secure and green
energy.

Lines of action
Engagement

Stakeholders' priorities analysis + Awareness raising campaigns + Advocacy + Other multistakeholder initiatives
Social dialog andlistening

Thematic supporting
events (for example,
decarbonization,
circularity, human rights)

Ongoing dialog todisseminate benefitsof green transition interms of climate change
and socio-economics
development

Initiatives on
decarbonizationand electrificationof uses

Transition out

Upskilling/reskilling,
redeployment, sharingof knowledge

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

Development of
individual and multistakeholder activities
to manage challenges
and create shared value
opportunities

Analysis of barriers
and intervention areas
to facilitate droppingout of conventional
technologies

Transition in

Upskilling/reskilling togreen jobs and digital

Supplier development
program (managerial
and technical training
to foster businessreconversion andinternationalization)

Access to credit, inclusive
business products, training aimed at facilitating
access to employment andgender-gap reduction

Empowerment andaccessible andinclusive transition

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Materiality analysis

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Our performance5

Appendix

Stakeholders’ engagement
We promote a broad engagement of stakeholders, bothinternal and external, in line with our Open Power approach, aimed at enhancing their awareness and developing a constructive dialogue that can contribute valuably toa just transition. Such activities may be overarching, takethe form of advocacy or of participation to initiatives promoting a fair and inclusive transition, as well as being tailored to specific stakeholders categories.

Analysis of stakeholders’ priorities
Routinary and direct involvement of all our stakeholders
through a structured process of ‘materiality’ analysis is
one of the pillars of the definition of Enel’s strategy. This
allows to identify material topics, i.e., topics that represent
the most significant impacts of the organization on theeconomy, environment, and people, including impacts onhuman rights.
For more details, please refer to “Materiality analysis process and results for 2022”.

Awareness raising campaigns
Awareness raising campaigns are a focal element to empower our stakeholders in the transition to net zero. Our
activities to this 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 growthsince the transformation of the energy sector coupledwith the push on digital requires a different approach to
executing works or providing goods and services;• communities in our area of influence, with whom wehave a structured approach to set up a broad, inclusive
and ongoing dialogue and identify shared solutions;• customers, whose active participation to the transitionneeds to be fostered and supported.

Advocacy
Promoting a just transition at all institutional levels is fundamental since there is a need to agree on what public
policies need to be in place to ensure achievement of decarbonization objectives.
Both our direct and indirect advocacy activities are conducted in line with the objectives of the Paris Agreement
and with our decarbonization roadmap. Specifically, we
involve institutional stakeholders, trade associations,non-governmental organizations, and academia, in orderto promote our vision on climate and low-carbon policies,
to contribute to the evolution of the regulatory framework
towards ambitious climate goals and to promote an economy in which carbon pricing drives long-term investments.
To this end, we interact directly with policy makers, contribute to the positioning of trade associations, and involvea broader set of stakeholders to build consensus and support for specific policy proposals.
For full details on our direct and indirect advocacy activities, please refer to “Advocacy about climate change policies”• Joint statement on just energy transition

In November 2021, the European social partners - Eurelectric, IndustriALL and EPSU - signed a joint state-ment on just energy transition, based on the principles
defined in the ILO Just Transition Guidelines.
Through such statement they have fully subscribed tothe objectives of the European Green Deal while acknowledging the need for a more consistent effort by
the EU to define a European strategy for the electricity
sector and the transition of its workforce as well as theestablishment of a coherent regulatory framework.
Recommended actions include:– requiring countries to implement inclusive governance and participatory mechanisms, social dialogue
and full transparency of transition planning;– setting a European framework on the anticipationand management of change;– offering employees lifelong learning to maintain aqualified workforce since the ‘twin transition’ (decarbonization and digitalization) prompts developmentof new business models thus spurring continuouschanges in terms of job profiles needed.
Commitments include:– promoting social dialogue and collective bargaining,at all levels;– supporting the anticipation of skills and the need to provide workers with the opportunity to update their skills

Our commitment to a just transition: leaving no one behind193

– supporting and promoting reskilling and upskillingthrough continuous professional development andlife-long learning.

• European Works Council

We maintain a high-profile social dialogue also throughthe European Works Council, last renewed in July 2016, abody introduced by European Directive 94/45/EC representing the European employees of a company. Throughit, workers are informed and consulted by managementon the progress of the business.
In March 2022, a plenary meeting was held and attended
by several representatives of Enel’s management, sharing the Group’s positioning on the transition and thevarious initiatives in place in the company to ensure afair process and a workforce increasingly prepared forchange. For further details, please refer to “Industrial relations” in “Empowering Enel people”.

• United Nations Framework Convention on Climate

Change – COP27
The Sharm El Sheikh Implementation Plan includes a clear
reference to just transition resolving to implement ambitious, just, equitable and inclusive transitions to lower
emission and climate-resilient development in line with

the Paris Agreement. It affirms that sustainable and justsolutions to the climate crisis must be founded on meaningful and effective social dialogue and participation of all
stakeholders and notes that the global transition to low
emissions provides opportunities and challenges for sustainable economic development and poverty eradication.
It also emphasizes that a just and equitable transition encompasses pathways that include energy, socioeconomic, workforce and other dimensions.
A work program, including a yearly ministerial meeting,
was also decided to discuss about the necessary steps
to achieve the Paris Agreement objectives.

• Electric mobility

We actively promote e-mobility as a key factor in reducing road transport emissions and contributing to the European Union’s energy efficiency targets.
Mobility is a critical aspect of social inclusion and an important contributor to human well-being, especially forvulnerable groups.
Transport, recognized as an essential service in the European pillar of social rights, meets a fundamental needin enabling citizens to integrate into society and the labor market.

Other multi-stakeholder initiatives• Just Transition Think Lab

Among the main initiatives promoted by the Global Compact, the Think Lab, developed in collaboration
with the International Labor Organization (ILO) and theInternational Trade Union Confederation (ITUC) brings
together global leading companies on the topic, clarifying the strategic importance for the business to supportand engage in a fair transition that leaves no one behind,examining challenges, opportunities and encouraging
the sharing of best practices and joint policy-advocacy
actions.
In 2022 we contributed to the development of the following business briefs:
1. Introduction to Just Transition - outlining the behaviors and priority actions for companies to undertakea right transition.
2. Just Transition for Climate Adaptation – exploring
how mitigation and adaptation actions implemented
by companies to address the risks and impacts of climate change must consider a fair and equitable approach from a social standpoint.
3. Financing a Just Transition – focused on the role offinance in promoting a fair transition. The report also
includes two Enel case studies: SDG-Linked Bonds
and Futur-E.

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• Business Commission to Tackle Inequality (BCTI)

Promoted by the World Business Council for Sustainable
Development (WBCSD), it brings together business leaders and key stakeholders with the aim of building a newcommon narrative on the role of companies in the fightagainst inequalities, raising the issue of inequality in business agendas and strategies.
We are part of both the Commissioners’ group and of thefollowing working groups: 1. Respect for human rights; 2.
Access to essential products and services; 3. Diversity, equity and inclusion 4. Preparing people for the future of work.
We also contributed to the launch of the introductory
report “Tackling inequality: The need and opportunity forbusiness action” and we are cooperating for the launch of
the initiative Flagship Report, expected in late 2023.

• CSR Europe Leaders Hub for an Inclusive Green Deal.

Selected group of CSR Europe members who have worked
on identifying the actions and tools needed by companies
to facilitate a fair transition in the context of the green anddigital transformations. We have been involved both in theSteering Committee and in working groups on workforce,
communities and consumers. A Roadmap for a Just Transition was presented during the European SDG Summit,
with the aim of providing companies with a strategic
direction to contribute substantially to a just transition.

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The document contains three Enel case studies: Value 4
Disability, Soft Leadership and Re-generation. In the firstmonths of 2023, a second document was also launched,the ‘European Business Toolbox for Just Transition’ which
provides additional tools for integrating just transition intobusiness strategies.

• Solar stewardship initiative

It is an initiative launched by the member-led association Solar Power Europe with the aim to ensure that solar
products imported to our continent are not associatedto human rights violations, as well as being aimed at enhancing the level of transparency, including a broader
approach to sustainability, and therefore addressing therequirements that might be included in the upcoming
European Union legislation.

Materiality analysis

4

Our performance5

Appendix• Global Alliance for Sustainable Energy

An independent global alliance, open to all actors recognizing the urgency of tackling the climate emergency
according to ‘just transition’ principles and the need topromote and embed sustainability and social responsibility in the renewable energy industry.
The Alliance’s initial efforts will focus on four key themes:
net-zero & CO2 footprint; circular design & economy;
human rights; and water footprint. In addition to representatives of industry, industry associations, academia,
the Global Alliance for Sustainable Energy(1) involves civilsociety and especially young people to accelerate theenergy transition. An energy transition that is just andleaves no one behind.

Tailored engagement activities
Enel people | Playing a leading role in thetransition

Main objectives of the program are:– keep track of the sentiment of our people about thecompany;

Listening and actively engaging the people working in
Enel are core elements to foster their commitment andaction on the strategy the Group is pursuing. Hereafter,
the most relevant activities:• Enel Digital Days

The format runs on a proprietary digital platform that
includes live streaming and on-demand content, designed according to accessibility and inclusivity standards (voice over and sub-titles in the languages spoken in the organization(2)).
2022 edition: the narration hinged on the decade ofelectrification and the central role played by customers to achieve the transition, with focus areas on decarbonization and renewables, digitalization and data-driven, role of the distribution grids, energy communities. Contents are still available on-demand and thecampaign achieved 36,000 unique users and 300,000
content views.
• Strategic alignment tracking
In 2021, we also launched a data-driven program to measure, on a rolling basis, how much the people working inour organization feel empowered to navigate throughthe transition, across strategic levers such as electrification of uses, acceleration of the decarbonization path,customer centricity and the new way of working.

– understand their level of knowledge and engagementwith respect to the key strategic pillars, as well as tospecific projects developed to:• spread Enel’s clean electrification pathway;• spread key notions around health, safety andwell-being, diversity and inclusion, job opportunities, learning and development, listening and feedback, among others;• stimulate them to become ‘enablers’, like contributing to the SDGs, customer centricity, digitalizationand data-driven culture, cybersecurity and dataprotection, technological innovation and circular
economy;– identify the communication channels that facilitate
understanding of a topic;– develop internal communication action/remediationplans on the topics/programs least understood;– track results and effectiveness of actions implemented over time.
Overall population breaks down in 4 clusters, each representative of the composition of the full workforce bygender, age, role, and seniority, the survey is carried out 4times a year (4 waves), and results are on an aggregate basis as well as per country. After each wave, results are analyzed jointly with countries/business lines/staff functions
so as to define an immediate action plan, if necessary.

(1)

Industrial members: 3M, Acciona, Adani renewables., EDP, Eletrobras, Enel Green Power, Goldwind, Iberdrola, JA Solar, Nordex, NTPC, Prysmian, Risen Energy,
Trina Solar. Advisory members: European Space Agency, Global Solar Council, Global Wind Energy Council, Politecnico di Milano, Politecnico di Torino, Student Energy and Youth Climate Leaders. Supporting members: IRENA coalition for action(2) 6 for the 2022 campaign and 5 for the 2022-2023 campaign as a result of the Group’s exit from Russia.

Our commitment to a just transition: leaving no one behind195

In 2022, redemption was equal to 33.4%, higher than similar preceding surveys. Among the internal communication
channels, the company intranet turns out to be the most effective means of communication.
In terms of reputation, perception is positive and generally
higher than the average of other companies belonging toheterogeneous sectors (for example, telecommunications,financial) and with a perimeter comparable to the one of theGroup (multinational companies).
Positive aspects concern the care given to the people working in the organization, who are rewarded equitably, the responsible and transparent conduct in communication andrelations with the stakeholders, protection of environmentand commitment to generate both environmental and social
positive impacts. Among the aspects to work on further, theability to offer increasingly accessible products and services.
In addition, people working with us identify with the “OpenPower for a Brighter Future” purpose, feel involved in thestrategy, and actively promote it, both internally and externally, and would recommend Enel as a workplace.

Suppliers | Thematic events
Suppliers are our partners in the sustainable growth path.
We promote a cooperative joint effort to maximize the economic, productive, social and environmental advantages of
the transition. We are committed to creating sustainable
processes, both innovative and circular, that allow to better
quantify, and then mitigate, total impacts they generate.
We have in place thematic events concerning decarbonization, adopting circular business models, respecting
human rights with the aim of sharing best practices andmulti-stakeholder approaches in line with the internationalreference standards for a sustainable conduct.

Communities | Ongoing dialogue
We collaborate with communities with the intent of identifying how we can work together for their socio-economic
development, including fostering access to energy, fighting energy poverty, supporting quality education.
Activities include spreading the notion that a transition togreen technologies to fight climate change is not just beneficial to the environment and the preservation of the related human rights but that it brings socio-economic development. Indeed, the creation of new jobs is estimatedto outweigh the loss of fossil-fuel related ones,(3) and may
represent a further tool to contribute to improving genderbalance in the working environment as well as contributing
to an improved quality of life.

(3) IEA, 2022 World Energy Outlook.

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Customers | Communication campaigns
and international initiatives• Social media and website

We develop initiatives to raise public awareness on decarbonization and electrification of uses.
Worth mentioning:– #WattAChange, a campaign to highlight the importance of green technologies in the European energy
context,– the Enel website section dedicated to the strategicrole of electricity in driving decarbonization and alsoenhanced through the social channels of the EnelGroup (https://www.enel.com/company/our-commitment/electricity-role-europe-decarbonization).

• Power2People

Power2People is a Eurelectric initiative aimed at fostering customers’ engagement in actively taking part in theenergy transition and how different actors in the newenergy ecosystem can support them on this journey. We
take part into this initiative as chair of the customers andnew services working group.
Examples of facts-based actions to empower customers
to utilize digital green technologies are:– the publicly available study on the critical role heatpumps play. On average, European households save
39% on their bills when switching from fossil fuelpowered heating systems to electric heat pumps. In
addition, they provide an up to 400% efficiency gain
over comparable gas boilers when installed in properly insulated homes and the flexibility of the technology allows for their use in a variety of household
settings, including in multifamily homes, or as part of
district heating and cooling systems;– the publicly available study on smart thermostats,a relatively easy to use and implement technology
which helps households and enterprises of all sizes
improve their energy efficiency and optimize consumption without reducing user comfort and providing flexibility to the power system by adjusting consumption during peak periods.
They can also provide consumers with an average of
10-15% of energy savings when connected to climate
control devices like electric heat pumps or air conditioning units.

• 15 Pledges to customers

15 Pledges to customers was launched in March 2020
by Eurelectric and co-signed by more than 90 European electricity retailers, supported by their National
Associations, who have committed to accompany cit-

1Letter to stakeholders

2

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3

izens in the energy transition with the broad aim to ensure a future European electricity system that is sustainable, reliable and inclusive. By signing the pledge
electricity suppliers commit to developing a range ofsolutions to make sure that everyone can benefit fromcarbon neutral electric solutions and to facilitate theadoption of electro-mobility, energy efficiency services
and renewable generation. The scope of the initiative
also included understanding the key barriers prevent-Materiality analysis

4

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Appendix

ing consumers from engaging in the energy transition
by identifying common trends and local differences
across nine countries (Ireland, Norway, Netherlands, Italy, Spain, Portugal, Germany, Czech Republic and Poland) involved in the joint collaboration effort with Eurelectric and Accenture through their national associations representing the electricity industry. For further
details, please refer to “Customers | Empowering thetransition”, in the “Transition in” section of this chapter.

Transition out
Enel has defined a clear decarbonization roadmap of its
energy mix, planning to complete the closure of all coalfired power plants by 2027 and to exit both gas-fired
electricity generation and gas sales to final customers
by 2040.
Such roadmap consists of four main actions:• promote electrification solutions powered by renewable sources;• complete fossil fuels phase-out;• accelerate the development of renewable sources;• digitalize and expand distribution networks.
For further details, please refer to “Our strategy for sustainable progress”.
The framework developed to achieve these objectives
takes into account the needs of the people who workwith us, the unions, our communities, our suppliers andour customers and applies to all thermoelectric generation plants impacted by the phaseout of fossil fuels, articulating in the adoption of inclusive practices throughinitiatives in which individual conditions, economic andsocial development and the general welfare of broader
society are closely connected.
In 2015, we have launched the ‘Futur-e’ initiative in Italy
that included thermal power plants no longer competitive on the market for a total capacity of 13 GW. The aim
was to give new life to the sites that hosted the plants.
Subsequently, we expanded the geographic footprint
extending to Iberia and South America and leading to aportfolio of about 5 times higher than the initial one (c.
80 sites).
Besides our direct involvement for other uses but always
connected to the world of energy, we have expanded
repurposing opportunities by integrating new businessprojects with complementary sustainable investmentsthat meet the needs of the communities where the fa-

cilities are located. Specifically:• in Italy, with energy requalification projects in line withthe transition objectives, the National Integrated Energy and Climate Plan (Piano Nazionale Integrato Energia e Clima - PNIEC) and the European Fit for 55 andRepower EU objectives;• in the Iberian Peninsula with the progressive transitionof coal-fired plants, like Teruel in Andorra, Compostilla in León (closed in June 2020), Carboneras in Almería Litoral (closed in December 2021) and As Pontes
in Galicia; for the latter we have developed a plan ofentailing approximately 2.7 billion euros of investment
and the creation of more than 1,300 jobs (details of
the plan are available at the following link https:///www.
endesa.com/en/press/press-room/news/energy-transition/development-plan-as-pontes-thermal-power-plant-closure);• in South America, where we have disconnected twocoal plants, Tarapacá that was closed on 31 December
2019 and Bocamina (group I in 2021 and group II in2022). We have thus become the first electricity company in Chile to no longer use coal for its generation
activities, 18 years ahead of the original goal of 2040
set by the Chilean National Decarbonisation Plan of2019.
Consistently with our commitment to a fair and inclusivetransition, the plan for exiting thermal generation entails :• 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 toenhance human capital and know-how. Agreed redeployment (which also involves workers’ representative
bodies) is accompanied by reskilling and upskilling
plans for strengthening existing skills or developing
new skills needed in the new role. Redeployment does

Our commitment to a just transition: leaving no one behind197not affect negatively role and contract type.
In the case of Chile, for example, out of the 50 people
working in the Tarapacá power plant 26 have been redeployed in other thermal generation units, 9 people
in renewable generation, 3 in other areas of the company, while 12 opted for a voluntary exit accompanied
by an economic, training and insurance package. For
further details, please refer to the Bocamina dedicated box;
– voluntary access to early retirement for those whoare eligible. In the 2020-2022, period we have provisioned more than 1.5 billion euros dedicated to managing Enel people affected by the energy transition
strategy.
• Site repurposing/regeneration(4)– replacement of thermal production plants with renewable or hybrid plants, i.e. a combination of green
technologies like, for example, renewables, storage,hydrogen;– land reclamation and maximization of the reuse ofabandoned structures, such as roads, infrastructure,high-voltage connections, buildings, etc. in line withour circular economy principles;– engagement of impacted communities and devel-

opment of multi-stakeholder projects to foster thecreation of shared value throughout the project,from preliminary talks to the choice of the redevelopment project to pursue. The plan developed forthe closure of the Bocamina plant contains at least
two examples of this approach: for the site hosting
the second unit, closed in September 2022, we drew
up a project to transform the discharge of ash produced by combustion, amounting to 10 hectares, in anative forest. In addition, we signed a ‘just transition’agreement with the municipality of Coronel that willallow the local government to invest in strengthening health services and education, in addition to thebuilding of a new school and a new park (for further
details, please refer to the dedicated box);– third-party projects not in energy field that meetthe needs of the communities in which the facilities
are located. An example is the transformation of thesite where the Porto Tolle plant operated to achieveenvironmental requalification and sustainable tourism thanks to a project of Human Company, a Florence-based group which is also Italy’s leading open
air tourism specialist.

(4) For further details, please refer to “Clean electrification” dashboard and to the “Sustainable Repurposing Model” box of “Conservation of natural capital“
chapter.

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Appendix

TRANSITION OUT: Montalto di Castro (Italy)
The first museum of the energy transition
is being built in Montalto di CastroC

ulture, innovation and the energy transition: threefundamental aspects of Italy come together in the
new energy exhibition center that will be built inour “Alessandro Volta” power plant in Montalto di Castro, inthe province of Viterbo.
The site once hosting the plant will become an “integrated
and multifunctional energy hub” thanks to the involvementof the community in the area of influence and in cooperation with the ACPV ARCHITECTS Antonio Citterio Patricia
Viel studio.
As a matter of fact, the main objective of the project is torepurpose the site by developing the TECCC, the Centre
for Culture and Knowledge of the Energy Transition, an
Energy Transition museum that will also host facilities dedicated to training, awareness-raising and energy thematic
events.

Furthermore, existing infrastructure will be expanded andintegrated with new renewable capacity and storage, inline with our sustainability objectives, and this will contribute positively in terms of enhancement of the territory andlivelihood of the local community. Third party entrepreneurial initiatives are also planned in line with our circularity strategy. Specifically, a portion of the land has beenrented out to a local company for the building of a solar
tracker factory, producing the devices that allow photovoltaic panels to follow sunlight during the day in order tomaximize electricity production. The building of the factory will have positive outcomes for local employment andcommunities including, but not limited to, offering job opportunities to all site workers. In addition, spaces are dedicated to the study of further sustainable solutions, such as
an innovative hydroponic greenhouse project .

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TRANSITION OUT: As Pontes (Spain)
The socio-economic development plan concerning
As Pontes phase-out testifies our commitment to a just transition
and the creation of value in the area of influence of the plantThe As Pontes plant is located in the north of the A
Coruña province, in the municipality of As Pontes
de García Rodríguez. It has been in operation since
1976 and it is the largest thermal plant in Spain.
We have submitted to the Ministry of Ecological Transition
as well as to the Regional Government of Galicia and theCouncil of As Pontes, a plan mainly including:• the dismantling of the coal plant (approximately 4 years)
that will include training for the over 130 employed tosuch purpose, giving priority to local manpower andpeople who already worked in the plant;• the development of a 1.3 GW wind farm that will generate
up to 2,300 jobs during construction and additional 274
direct jobs during the 25 years of estimated useful life;• the repurposing of the territory for new industrial uses
including a smart tyre factory, that will create 750 direct
jobs and will act as an economic vector for the terminalof the nearby port of Ferrol;• a biological plant for the recovery, development and pro-200

Sustainability Report 2022

duction of natural fibre from recycled paper and cardboard, that will generate 150 direct and 400 indirect jobs;• the supply of electricity to Alcoa at a competitive pricethat would enable the latter to resume aluminum production after the downturn caused by the increase inenergy prices;• a new logistics role for the outer port of Ferrol that willcompensate the traffic decline connected to the shutdown of the plant by becoming a multi-client bulk terminal (transport and storage of bulk cargoes: grain, minerals, etc.);• green hydrogen generation plants, with the building ofan electrolyser for up to 100 MW powered by the windfarm that will be built;• the development of a strategic wind maintenance logistics centre to support 120 Endesa’s wind farms in Spain,that will entail the generation of 57 direct jobs;• training for local manpower, workers in auxiliary companies and to support women employment.

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TRANSITION OUT: Teruel (Spain)
After 40 years of operations, Teruel’s coal plant cooling towers
have been demolished. The site will host photovoltaics and wind
installations. An additional example of sustainable decarbonizationand decommissioningDevelopment of a hybrid energy hub, with photovoltaic and wind plants, storage and a green hydrogeninstallation: these are some of the projects included in the energy transition tender. A substantial changethat will bring new jobs and will support requalification for
the very people working in the plant thanks to job rotation.
Hereby a few data:• energy transition tender: right to develop 953 MW, withthe option to get to up to 1,200 MW;• building of 5 solar plants and 5 wind ones in a hybrid
setup jointly with a storage system that will enable full
exploitation of the renewable production;• more than 1,200 millions of euro to be invested;• industrial development coupled with a social plan entailing the generation of more that 3,500 jobs during con-struction, with 300 direct permanent jobs at regime;• training to upskill people in the area of influence in order for them to be able to work in the renewable energy
sector and to open access to work to local unemployedpeople.
In addition to the plan connected to the energy transition tender, Teruel will also host a photovoltaic plant called
SEDEIS V, for an installed capacity of circa 50 MW and an
investment of approximately 40 million euros. The project will generate more than 280 jobs during construction(started in July 2022) and 8 permanent jobs for the operation and maintenance of the plant that will have an average
life of 30 years.

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TRANSITION OUT: Bocamina (Chile)
Ours is a daily commitment to an inclusive transition unfolding
through engagement with our stakeholders since we are awarethat we belong to the territory and we are an essential element in
the lives of people, businesses, and society at largeOn September 30, 2022, the town of Coronel witnessed a historic event. With the final disconnection of Bocamina II, Enel became the first company in Chile to close all of its coal-powered plants. The
milestone occurred in an area historically associated withthe coal industry, but that today aspires to transition to amore sustainable and inclusive development.
Bocamina contributed to Chile’s national development andenergy security and its shut-down has occurred at the endof a just transition plan launched two years before andaimed at maximizing value for Enel’s people, suppliers andlocal communities.
The story of Michael Navarro is a good example. The shutdown of the plant has turned into an opportunity since it
has offered him new options in the renewables field and,specifically, in the maintenance of the solar power plants of202

Sustainability Report 2022

Enel in Chile. He has also gone from working 12-hour shift
to a hybrid working framework. Now he works eight daysa month at Enel Chile headquarters in Santiago or on-site
the power plants in Antofagasta and Atacama. The rest of
the month, he works remotely from his home so he canstay close to his family .
The people involved by the shut-down of the two units ofthe plant are 90: more than 60% has been redeployed inother areas of the company, like engineering and construction, renewables, health, safety, environment and quality
whereas about 30% has enjoyed early retirement or voluntary redundancy, and about 7% has continued working for
the Operations & Maintenance unit managing the plant.
In addition, the main contractors providing services to the
Bocamina plant have been included in the eligibility programs for commercial retraining and professional skills.

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Appendix2023-2025

45% of people who left coal-70%of people leaving coal-fired
plants will be redeployed, participating in
upskilling and reskilling programs

fired plants in 2022 have been
redeployed and have attended
upskilling and reskilling programs(~90 hours per capita)

30% will be included in

The remaining
early retirement plans

Redeployed coal plants people:~80%

within the Enel Green Powerand Thermal Generation perimeter~20% in other Enel business

areas

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

40%

Strengthening of the “internal
training” approach

Transition in
The ‘green transition’ is the combination between technological innovation and actions aimed at a sustainableeconomic growth that fosters the transition from a system based on polluting energy sources to a virtuous model
centered on green sources and social development at thesame time.
This transition couples with a digital one, which initiallystarted for operating efficiency reasons and then transformed into a driving force for innovating traditional business models.

Similarly to ‘transition out’, however, the path to a ‘green’and digital future must also be led in an inclusive way to enable all stakeholders to seize its opportunities and manage
the risks 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 that some
jobs will disappear. This context prompts for an ongoingtraining activity accompanying people throughout theirpersonal and professional life in a sort of “circular path”,
starting from school up to when the working activity ends
and returning consolidated knowledge to new generations
and to the ecosystem will be key.

Empowerment becomes therefore crucial to evolve culturally, because it allows to fully involve people, motivating them to express their potential, while at the same time
providing them with opportunities for personal and professional development, and contributing to create conditionsof well-being, motivation, responsibility and participationthat will enable the achievement of strategic objectives.
Among the initiatives implemented:• retraining and professional updating, up/reskilling,
self-learning and knowledge transfer. Our business lines

Our commitment to a just transition: leaving no one behind1203

Schools & Academies have organized existing skills improvement programs to allow participants to accessmore advanced career paths (upskilling) and to learn
new skills (reskilling) to hold different positions and roles,
also through the enhancement of soft and transversal
skills. Such programs have been realized also in collaboration with university and academic partners;• support for the dissemination of the digital culture andthe utilization of digital media;• promotion of women’s presence in STEM (Science, Technology, Engineering, Mathematics) classes and jobs. We
collaborate with schools, universities, and institutions to
overcome gender stereotypes and spread the importance of an increasingly integrated technical-scientificculture and humanistic dimension. These STEM awareness and orientation initiatives involved nearly 10,000
high school students in 2022 (over 30,000 students inthe last 6 years);• career counseling: conversations on specific topics
to increase awareness of third- and fourth-year highschool students when choosing what to study and which
job to look for, together with shadowing meetings, i.e.,
working days spent alongside a professional to begin
to understand how the working environment works andwhat is the language used, and the opportunities offeredby STEM courses. For more details please refer to thechapter “Empowering Enel people”.

Enel people
96%

of population involvedin training> 3.1

million hours of training(>47 average hours per capita),of which over 42% dedicated to upskilling
and reskilling430

thousand hours of training
dedicated to digital skills (14% of theoverall training hours)

Suppliers | Supporting change
Suppliers are an essential partner in the journey to decarbonization.
In this sense, the actions we have in place aim, on the
one hand, at supporting their increased resilience and, on
the other, to minimize pressure on critical materials andcomponents through continued technology innovation
and recycling.
That is why we work jointly with them to develop new performance metrics and to promote co-innovation projects
to support decarbonization and circular economy approaches, that will all have positive impacts on their production processes and on the purchasing methods.

life cycle of the supplies (for core categories(5) we require the Environmental Product Declaration(6) – EPD)
• we require information about the country of origin andthe quantities of each material composing the product,
including recycled and recyclable material. This allows
us to reward suppliers based on their recycling capabilities thus stimulating a circular culture and meeting
the increasing demand for supply chain transparency
and traceability aimed at minimizing potential ESG impacts of some products production processes in termsof human rights violations, bribery, water use, air pollution, CO2 emissions and loss of biodiversity.

Among such initiatives:• we set increasingly challenging emission targets in tender processes that also factor in the contribution of innovation. These targets are shared with our suppliers
and are in line with a 1.5° roadmap;• we promote a circular supply approach through the
adoption of various initiatives and mechanisms that allow us to quantify, certify and communicate objectively
the environmental impacts generated throughout theWe have also worked on several initiatives to walk thetalk in terms of supporting business reconversion anddiversification:• Supplier Development Program, initially launched in Italy (where it is currently open to over 6,000 suppliers)and being extended to other countries of presence,
which places a specific focus on SMEs operating instrategic sectors that will benefit from our direct support for an easier access to services such as liquidi-(5) Core categories are the ones strategic for the business, and include wind turbines, smart meters, photovoltaics, transformers, street lighting, smart homesolutions, storage systems.
(6) Document describing the environmental impacts related to the production of a specific quantity of product or service: for example energy consumption
and raw materials, waste production, emissions into the atmosphere and discharges into water bodies.

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Letter to stakeholders

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We empower sustainable progress3

ty sources, management and technical training programs to encourage their business requalification toserve the energy transition, advice on sustainability,
circular economy, strategy, M&A and internationalization, access to catalogues of means of transport andwork machines, certificates;• “Sportello imprese” (business counter), which consists
in meeting periodically with companies belonging to
the traditional energy production sector to support
their growth and requalification in areas such as renewables or new services related to energy efficiency;• courses focusing on the reskilling/ upskilling of workers connected to jobs that risk disappearing, on fostering entrepreneurship and strengthening the Italianproductive and economic fabric, such as:– Digital Management Program: an initiative aimed at
stimulating and encouraging businesses digital development. Our Digital Innovation Hub of Lazio has
collaborated to developing a project of consolidation and growth of managerial skills of leading companies in the region. The training, that took place in
2022, was held after an initial stage of assessment
instrumental to raise awareness about digital skills
and improving them. The project has then given riseto the Digital Management Program which, in 2022,
involved 20 companies of the local territory for a total of 24 hours of training provided by Luiss Business
School;– courses for photovoltaic panel installers: during2022, we launched the initiative also in Brindisi. It
aims at requalifying local suppliers training them sothat they can work in solar photovoltaic plants building sites. This activity builds on what was done in
2021 for Civitavecchia and Montalto di Castro suppliers involved in the Alto Lazio energy transition andthat have decided to requalify their business in order
to be able to work in the renewables field;

Materiality analysis

4

Our performance5

Appendix• “Energie per Crescere” (Energy for Growth), a program

launched at the end of 2021 with the aim of training about 8,200 new technicians, including 5,500 by
2023, creating highly requested professional profiles
in the electricity sector (cable pullers, cable splicers,
substations assemblers, live-line workers) to be hiredby Enel grids partner companies; the remaining 2,700
technicians will be trained and hired by 2025 and thetraining will focus on renewable profiles for partnercompanies (electrical specialists, junior site managers,
civil-mechanical specialists). During 2022, some 2,100
new technicians were trained and recruited from grids
suppliers;• “Energie per la Scuola”, a program for final year students attending technical and vocational schools
with the aim of training them for the ‘most wanted’roles in the electricity sector so that, after graduation,
they can be hired by Enel’s suppliers. The first editionof the program (school year 2020/2021) involved 11
schools, 8 suppliers of e-distribuzione and a total ofsome 100 students who were all hired by Enel’s suppliers at the end of the training. The second edition,
aimed at 2022/2023 school year students, is currently
underway and it involves over 60 schools and some
500 students.
For full details, please refer to “Sustainable supply chain”.
Moreover, also in 2022 we have promoted employment
stability in Italy thanks to the application of the so-called“social clause” in our purchasing procedures. Suchclause mandates a supplier taking over another in theprovision of the same service to ensure continuation of
the employment of the persons employed by the former
supplier. This allowed 3,700 people to keep their job.

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205

Our efforts also go in the direction of supporting a greater
diversification of the supply chain of key technologies forthe transition, like for solar PV.
This is the case of 3SUN, our PV modules producing factory in Catania, Sicily which is a European leader in the
manufacturing of innovative bifacial cells and panels.
The planned capacity expansion (from the current 200
MW to roughly 3,000 MW per year by 2024) will involve an
investment of around 600 million euros and the creationof direct and indirect jobs.
For further details, please refer to “Clean electrification”.

Suppliers
8,200

people involved in training
aimed at new technical profiles to be
hired in supply chain companies

5,500

people for grids, of which
2,100 have been already trained andemployed (full achievement by 2023)

2,700

people for renewables (fullachievement by 2025)

Communities | Creating shared value
Our commitment to support communities goes throughinitiatives that promote inclusion (with particular attention
to people in conditions of physical, social and economic
vulnerability) both in terms of access to local working opportunities and to facilitating access to products and services.
These initiatives, as specified in the chapter “Engaging
communities”, are the result of solid and lasting relationships that include a broad, inclusive and continuous dialogue based on clearly defined phases of “Stakeholder engagement” in line with international reference standards.
We have, for example, put in place many projects focusing on digitalization to support connectivity in rural areas,
computer literacy, as well as to encourage the participationof women in STEM subjects. These include the following:• Lethbridge College (Alberta, Canada) - partnership forwind engineers
Support to the training program for wind turbine engineers and involvement of students belonging to the
Piikani Nation community (indigenous population of theAlberta region, Canada).
The partnership creates opportunities for STEM education and access to the world of work for indigenous andother students living in the areas of influence of severalof our wind farms in the southern part of the province.

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• Ruta Pehuenche (Maule Region, Chile) - program for thegrowth of local small entrepreneurs
Engagement with the local community of the area of influence where the construction of the Los Cóndores hydroelectric plant is underway has generated educational
and working opportunities, with the birth of a micro-entrepreneurial fabric led by women.
The project was born with the twofold objective of promoting the economic growth of the whole community,
through training courses, and improving living conditions, thanks to the use of environmentally friendly technologies for water supply, for the cultivation of food, forthe construction of housing, for access to energy andfor sanitary facilities. In the four years since the start,
more than 80 participants attended the courses, including 70 women.
• È viva la scuola, Helpcode (Italy)
In partnership with Helpcode, the project aims at supporting educational institutions in their activities, byintegrating training contents and strengthening curricular teaching, with the additional aim of increasing theawareness of children on issues of topical importancefor Enel such as the energy transition, digitalization andhuman rights. The project also provides specific training
for teachers.
For more details, please refer to ”Sustainability projects
and initiatives” in the chapter “Engaging communities”.

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Communities

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Appendix

The second step is putting the increasing number of connected home devices (home appliances, mobile technology, heat pumps and EVs) to the best to manage energy use.
Energy suppliers and service providers can help consumers use the power of new technology by designing easyto-use services and offers that reduce complexity andcosts while increasing control and gaining new revenues(sale of the excess self-produced electricity or of unutilized available power capacity) and keeping technology
innovation and evolution always in the radar to always provide the most effective and relevant solutions.
Affordability of green technologies whether EVs, solar PVs,
batteries or heat pumps is a relevant barrier, especially for
low-income and vulnerable customers who are alreadyaffected by a low spending capacity for primary energy
uses and who might be the ones to benefit the most fromadopting them.

2,300

socio-economic
development projects

3.7 million people having benefited(1)

from inclusive and equitable quality
education (SDG 4)

4.9

million people(2) eligible
for sustained, inclusive andsustainable economic growth(SDG 8)(1) 2015-2022 cumulated data of total SDG 4 beneficiaries.
(2) 2015-2022 cumulated data of total SDG 8 beneficiaries.

The enormous amount of data created by the growing roleof connected devices offers a great opportunity to engage
customers in the transition with tailored solutions but data
security and privacy shall be preserved and transparency
about how data is being used and shared must also be ensured with simple terms and conditions
For further details, please refer to “Clean electrification”
and “Managing human rights” chapters.

Customers | Empowering thetransition
Energy and digital technologies are key enablers for empowering consumers through new services, better insights
and more control.
The first stone that must be laid is a smart meter. This is apiece of technology that allows customers to access theirown consumption data more easily, increasing awarenessof their energy use habits and encouraging behaviors thatare more efficient and sustainable.
It also enables personalized electricity rates that are better suited to different consumer habits, with dynamic andhighly flexible pricing.
Recently improved technology also makes it possible to integrate energy consumption monitoring with smart homemanagement systems for electrical appliances, boilers, airconditioners and lights. Finally, it facilitates real time monitoring of self-produced energy from users’ own distributed generation systems, like photovoltaics and or batteries.

Customers
Sold>70,000 smart home

products>5,000 photovoltaic

products

90 MW

approxof capacity
through solutions for renewable energy
self-production

Our commitment to a just transition: leaving no one behind2071

Empowering Enel people

Material topics (I leveI)

Doublemateriality

Plan

SDG

• People management,
development andmotivation

People• Enel people

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and thetargets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous
Plan.

GenderSDG

Activities

2022 results

5

Women in selection processes (%)(1)52023-2025 targets

Tag

52.2%

50.0%

S

Women managers(2) and middle
managers (%)

24.9% managers
32.6% middle managers
31.8% managers and middle
managers

26.9% managers(3)34.1% middle managers(4)33.4% managers and middle
managers(5)S

5Women in managerial Succession
Plans (%)

46.1%

46.0%

S

5

Women in Top Manager Succession
Plans (%)

50.0%

45.0%

S

5

Female students involved in STEM
career guidance initiatives

9,887 female students involved

19,200 female students
involved in the period2023-2025

S

8Climate survey - Open Listening (%)

100% people involved(6)75.6% participants

100% people involved(6)80% participants

S

8Open Feedback Evaluation Performance appraisal (%)

100% people involved(6)100% people involved(6)S

99% appraised

99% appraised

Listening andappraisal

8

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

Progress

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
regulations that do not permit gender tracking during the recruitment phase.
Including female Top Managers.
The target for 2030 is 32.1%.
The target for 2030 is 38.1%.
The target for 2030 is 37.5%.
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
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable208

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Appendix

S

Digital skills – Promote training on
digital skills among all Enel people

14% of training hours dedicatedto develop digital skills

20% of training hours dedicatedto develop digital skills

S

Reskilling and upskilling – Promotereskilling and upskilling programs forEnel people

42% of training hours conducted
on upskilling and reskilling

40% of training hours
conducted on upskilling andreskillingS

12% of training hours dedicatedto develop human skills

10% of training hours dedicatedto develop human skills

S

8

Development of a new culture of“Human sustainability” among ourpeople4

Scholarships available for Enel people

151 scholarships

390 scholarships in the period2023-2025

S

Disability inclusion

Adopting a systemic
approach to disability inclusion:
within the scope of the launchof a structured process toanalyze the needs of Enelpeople with disabilities
globally, the Enel WIN - Work
INclusion questionnaire wasrevised;several initiatives areunderway to ensure physicaland relational accessibilityin Spain and Chile and topromote digital accessibility
in Colombia, with the aim of
spreading awareness of theimportance of accessibility andits benefits for inclusiveness;in order to support theinclusion and contribution ofpeople with disabilities there is
the global “Empower disability”
program enriched with global
and local initiatives, designed
to improve the overall journey(with a focus on attraction,
inclusion and onboarding, careand development) of people
with disabilities at Enel

Promote the inclusion ofpeople with disabilities at
all stages of business travel:
implementing inclusive work
travel services (adoptionof Global Inclusive Travel:assistance, accompaniment,
inclusive and accessible
travel services)

S

8

4

17

8
10

•

•
Enhancing diversity

Our performance

46.5 hours

4

Average training hours “Cultural
Evolution” per capita

Progress4

47.4 hours

4

2022 results

Materiality analysis

Tag

8

Activities

32023-2025 targets

4

Training

2TT

80% of Enel people covered
with at least one Global Inclusive
Travel service in 2025(7)•The target is considered
outdated as it has been replaced
by a quantitative one

Read more
The Value for Disability project brings together most of the actions regarding disability
developed for colleagues in Enel’s main countries of presence, as well as for customers
and for the community.
For additional details on the project, please refer to the chapter “Managing human rights”.

(7) 47% of Enel people were covered with at least one Global Inclusive Travel service in 2022.

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SDG
5
8

Activities

2022 results

Promoting an inclusive culture freeof prejudice and harassment

In the main Countries where weare present, specific initiatives
have been developed with theaim of spreading a prejudicefree culture and raisingawareness about harassment in
the workplace. Specifically:
bias training course
completed by about 33% ofEnel people
harassment training course
completed by about 32% ofEnel people

10

Progress2023-2025 targets

Tag• Promotion of a bias andSharassment free inclusion
culture•Enhancing diversity•
5
8

Promotion of a multicultural
workplace inclusion culture

The topic of intercultural
inclusion was promoted in 7
countries, where awarenessraising and training initiatives
were organized on different
aspects related to the themeof cultural diversity (ethnicity,
nationality, etc.).

Diversity and inclusion culture

N.A.

10

8

11 countries with active
intercultural workplace
inclusion culture initiatives

N.A.

• Assessment of awareness10

Quality of corporate
life and well-being•
8

Enel people in remote working

Over 36,000 eligible employees

8Overall Global Wellbeing Index

60.0%

N.A.

Read more

Monitoring eligible employees

S

61.0%

S

By means of an annual survey, the overall Global Wellbeing Index records the percentage of Enel people who are quite or very much satisfied with their general well-being (personal and working life). Due toits extensive meaning, it encompasses all factors that can influence
general well-being, including both exogenous factors (such as pandemics, socio-economic issues, politics, climate, etc.) and endogenous ones, on which Enel is committed to intervene with its Wellbeing
and Welfare actions.

Goals
Industrial

E Environmental

G Governance

T Technological

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable

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S

on D&I topics andperceived inclusionof people in theorganizational context
Defining a baseline for
improving the D&I strategy

Read moreAmong the main initiatives to increase the inclusion of different
ethnicities and raise awareness of diversity, there are workshops,
training programs and communication campaigns designed to foster a multicultural working environment.

I

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SDG

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Activities

2022 results

8

Asset protection

8

Physical protection of people
abroad(8)3Materiality analysis

Progress4

Our performance5

Appendix2023-2025 targets

Tag

Risk Assessment Methodology
for asset protection andresilience adopted in 100% ofcountries

Performing Risk Assessment in
100% of the countries where theGroup operates

S

Completion of the design of an
online course on travel safety to
be included in eDucation catalog

Expansion of the catalog
content with at least 3 training
courses for Enel people by 2025

S(8) This refers to services to mitigate the risk of assault and kidnapping for colleagues working in countries with very high levels of crime.

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2-24

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Materiality analysis

The profound social, economic and culturaltransformations that are characterizing
the current era, from the transition to a
decarbonized economy to the processes ofdigitalization and technological innovation,
also profoundly affect the workplace.
Companies must therefore be able totransform themselves to adapt to operatingin scenarios of high uncertainty, volatility andcomplexity. Acting in an inclusive manner,placing the person in his or her social andworking dimensions at the center, thus
becomes indispensable to cope with thisepic transformation.
We are more than 65,000 people in Enel,belonging to 86 nationalities and speaking
24 languages.
The success of our strategy rests precisely
on our people and on a model, in placesince 2015, of shared values and behavior:
the “Open Power model” (see “Enel is OpenPower”).
We are committed to promoting andenhancing knowledge, relations andinfluence between different cultures,
as well as respect for human rights.
Valuing diversity and individual talents is afundamental prerequisite for creating an
inclusive corporate culture in which everyone
can recognize themselves, regardless ofrace, ethnicity, religion, gender, age, sexual
orientation and ability.
We have strengthened our people
empowerment processes to support thecultural evolution of our people, focusing
on their well-being, motivation, sense of
responsibility and active participation.

4

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Appendix

These dimensions are closely interrelated,intertwining and mutually reinforcing,enabling the full expression of eachindividual’s potential, with a positive
impact on the sense of belonging to thecorporate community, fostering involvement,
attractiveness and loyalty of people, and on
the achievement of the Group’s sustainable
results.
To ensure that our people are readyto support the Group as it transitions,embracing change and adapting quickly, we
promote a continuous learning experiencethat accompanies them throughout theirpersonal and professional life cycles.
The People and Organization Function
defines organizational models and themultiannual people management plan inline with the Group’s strategy. The people
selection, management and development
processes are governed by specific policies
and procedures that apply to the global
and local levels, with 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 analysis tool, “People Analytics”
which, based on quantitative metrics andrelated statistics and operating throughplatforms, allows for a real-time assessmentof the different demographic clusters, andtherefore also generational clusters, relevant
for the Company.

65,12423.4 %

ENEL PEOPLEWOMEN IN THE WORKFORCE

66,279 in 2021 -1.7%

22.5% in 2021 +0.9%

6,412

24.9 %NEW RECRUITSWOMEN MANAGERS(including Top Managers)

5,401 in 2021 +18.6%

523.6% in 2021 +1.3%

47.4 Average hours
TRAINING PER EMPLOYEE
44.5 average hours in 2021 +6.3%

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The Statuto della Persona(Charter of the Person),a cultural transformation“A new working ecosystem where people are at the centerwith their well-being, participation and dignity”. This is thecore of the Charter of the Person, signed in Italy on March
29, 2022 by Enel and the trade unions FILCTEM, FLAEIand UILTEC and rapidly disseminated throughout thecountries and regions where the Group operates.
It is an innovative protocol that inaugurates a model oflabor relations based on the involvement of the individual
and the Company, valuing the person in a harmonious
relationship with the surrounding world.
Putting the human being at the center, taking care of hisor her needs in order to enhance their uniqueness, at
all stages of life: from schooling to the transmission ofknowledge to future generations.
A new model, conceived in the age of uncertainty par
excellence, due to the Covid-19 pandemic that has infact transformed relations in the workplace, thus also
becoming an extraordinary opportunity for change,crowning a cultural journey that had already begun sometime ago at Enel. In energy, digital and cultural transition
processes, the person becomes the success factor, thetrue competitive advantage. In order to cope with therapid changes taking place, an inclusive path is needed,
all the more so in the workplace. With this in mind, theCharter of the Person aims to value the human being by
making him or her the protagonist of an ecosystem inwhich Company and union organizations work together
to create a healthy, safe, stimulating and participative
working environment. An environment in which wellbeing, productivity, continuous learning and safety canreinforce each other, contributing to the fullest realization

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There are three areas:• well-being, participation and productivity, to promote
the protection of dignity at work, inclusiveness, absenceof prejudice, work-life balance and attention to the human element;• knowledge and continuous learning, a life-long learningmodel, with professional training and refresher courses,
women’s empowerment to encourage the choice of scientific subjects (STEM), the offer of apprenticeships andopenness to external training contributions, including
the planning of specific moments to be dedicated exclusively to self-training;• safety culture and behavior, especially in the workplace,with the provision of ex ante and ex post analysis of injury-risk, the identification of the most innovative technologies for accident prevention, the empowermentof workers and the strengthening of the safety culture
through the involvement of the supplier network.

The Charter of the Person represents a turning point
towards a virtuous mechanism of caring for relational
space in the workplace, where dignity and well-being
are indispensable elements. The path to sustainability
undoubtedly passes through changing the production
model, but also through rethinking interpersonal
dynamics, ones that are more open and receptive toothers. For Enel, people have always been at the forefront.
This document aims not only to improve the conditionsof Enel’s people, but also looks outwards, to the entire
ecosystem of suppliers and contractors that workwith the Group, and opens a channel for dialogue withother companies to design an increasingly sustainable
workplace together.

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Multi-stakeholder
initiatives
In 2022, we participated in numerous initiatives and multistakeholder dialogues focused on social sustainability,with special reference to Enel people.
Specifically:

CSR Europe
On the topic of just transition in the context of the green
and digital transformation, in which we participated in thegroup on “workforce”, as well as those on “community”
and “consumers”.
We also actively participated in the workshops organizedwith the aim of stimulating companies to effectively
develop a people-centered approach and corporate
inclusion (“How companies can include care for people
and well-being in the green, digital and post-pandemictransitions in their workspace”), which led to the launchat the European SDG Summit of the “Building Inclusive
Workplaces” blueprint, to which we contributed the“Gentle Leadership” case study.

3

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Appendix

Finally, we took part in the Upskill 4 Future project,focused on the employability of vulnerable workers
through the promotion of upskilling and reskilling
practices, contributing to the publication of the“Upskilling & Reskilling Report”, in which Enel’s pilot projecton e-distribuzione People Business Partners (PBPs) isfeatured.

World Business Council for Sustainable
Development
We participated in the “Healthy People Healthy Business”
project, among others, which explored the role ofbusinesses in developing and promoting solutions to
global health challenges by supporting disease prevention
and health promotion. The main outcome of the project
was the flagship report “Healthy People, Healthy Business:
How business can contribute to global health” launchedduring the Annual Meeting of the Planetary HealthAlliance. Included in the report is our people case study
entitled “Supporting healthier lifestyles of employees
through innovative telemedicine”.
For further details on initiatives related to social issues,
please refer to the chapter “Our commitment to a justtransition: leaving no one behind”.

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Attracting new talent3-3

404-1 404-2 404-3

DMA EU (former EU14)

The 2022 global recruitment plan focused on tapping key
roles to manage the challenge to the energy transition,
capable of supporting the three main business drivers-renewables, electrification of consumption, and digitalization of networks, and interpreting both new consumer
needs and the dynamics of business developments to ensure increasingly sustainable energy use. There was a special focus was on STEM (Science, Technology, Engineering,
Mathematics) and the search for more inclusive ways of
attracting talent.
More than 6,400 people(1) joined the Group in 2022, enhancing an ongoing commitment to relations with universities and to holding Recruiting Days globally, as a modelof candidate engagement in relation to the various positions to be filled.
To support the selection process, we have defined several
initiatives, digital and otherwise, aimed at building a corporate identity that is attractive to potential candidates andincludes the transmission of our values.
Among the main initiatives are:• the launch of the Talent Engagement Program, a selection process targeting talents from the most prestigious
international universities aimed at ensuring a transversal
development and growth path within the different areasof the Company;• the “A day as a colleague” campaign, aimed at fostering
full external knowledge of the Company’s different professions, through the amplification on social channels of“a typical day as a colleague” with its operational activities, relations with co-workers, the story of its sharedpassions and how these often dovetail into everyday
work;• specific advertising campaigns targeted at increasing
the visibility of job offers, especially with a view to genderequality and full inclusiveness, launched during 2022 tosupport specific recruiting needs and which saw a positive engagement rate;• a complete restyling of the “Careers” section of theenel.com website, aimed at improving candidate engagement thanks to an optimized user experience andaccess to content providing a complete overview of theCompany and a more user-friendly consultation of thevarious vacancies in the Group;(1)• a new system (Avature) launched in November 2022 forthe global collection and management of all internal andexternal applications, central to a data-driven strategy ofthe selection process.

In addition, all our brand pages were integrated into the
Enel Group’s, in order to optimize its positioning on themain external talent attraction platforms, such as LinkedIn,
Indeed and Glassdoor, and to ensure an integrated strategy for all candidates.
In 2022, the New Onboarding Global Platform waslaunched, a unique, comprehensive and inclusive platform
for new hires around the world, with the objective of making all cultural and organizational content accessible tothem for their full inclusion in the Company.
In order to ensure the direct, open and transparent involvement of every person in the Group in the selection
and development processes, the “Referral Program” forthe search of talent through two pathways was also active
in 2022:• external: everyone in Enel can provide support to identify people in the “outside world” who might become newcolleagues;• internal: once a year, it is possible to recommend a colleague for advancement in their professional development.
Over 14,000 reports were made during 2022.
Finally, mobility at work was enhanced again in 2022, enabling people to open up to new professional challenges,
facilitating the diversification of competencies, and creating increasingly horizontal profiles. In order to promote
people centricity, increasing attention has been paid to thee-profile tool as an opportunity to enhance a person’s hardand soft skills, aspirations and motivations for change.
In 2022, the internal job posting tool was also opened to
the Group’s new management positions in order to promote full global participation of the entire corporate population.

Fixed-term contracts are used to a limited extent, to cope with peaks in activity or to temporarily replace workers on prolonged leave (e.g., maternity/paternity leave, etc.) and provide for salaries equal to those of permanent workers.

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Continuous learning to encourage
our people to participate in cultural evolution
The participation of people in the cultural and systemic transition associated with the decarbonization of theeconomy and digitalization, which requires new skills, professionalism, and flexibility of adaptation, necessitates theprovision of a continuous learning experience that accompanies them throughout their personal and professional
life cycle on a “circular path”, beginning with the school
phase that precedes their entry into the workforce. In a
self-sustaining virtuous loop, the final phase of their working life will be dominated by the “restitution” of accumulated knowledge to future generations and to the ecosystem.
“Knowledge and lifelong learning” is also one of the pillars
on which the Charter of the Person is based.
Moreover, valuing individual talent also means caring for
the well-being of the individual through the creation of an
inclusive and prejudice-free environment, in a non-judgmental context, where everyone can feel fully embraced intheir uniqueness and encouraged to express themselves,
without any distinction of race, ethnicity, religion, gender,
age, sexual orientation and ability.
It is in this context that the following activities took placein 2022:• “Soft Leadership Global Program”, a course targeted at
all Enel people with the intention of raising awarenessand stimulating the adoption of behaviors and practices
consistent with the “gentle leadership” model at all levelsof the organization. It is a program of cultural orientation
towards a leadership model increasingly focused on dialogue and the exchange of ideas, inspired by trust, andfocused on the enhancement of talents and the expression of autonomy, rather than on control and scrutiny.
The program is co-designed with the targets, who become the protagonists of the dissemination phase. Fifteen global events were organized, some of them directed to the population of People Business Partners (PBPs),
internal figures dedicated to listening to and dialoguingwith people, capable of capturing individual aspirations
and integrating them with the needs of the organization.
These were part of the Cultural Innovation Journey dedicated to them, whereby frameworks and gentle leadership guidelines were shared for subsequent outreach tothe people they manage. In addition, PBPs were involvedin the identification of about 600 Kindness Ambassadors, belonging to all Business Lines and Countries, withthe aim of driving a concrete cultural evolution by disseminating and promoting the key behaviors and valuesof soft leadership throughout the organization;• an innovative and deeply absorbing training course withthe application of neuroscience aimed at Top Managers, which also included an in-depth look at the biases
related to managerial skills and female leadership;• 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. In particular, Mentoring, which isbased on the sharing of soft skills and the generosity ofmentors who provide less experienced colleagues witha role model, stories of successes and failures, saw the
involvement of around 670 people globally in 2022;• the adoption of the “Learning Time” provided for in the“Charter of the Person”, which will allow our people to set
aside moments for training only, in which they can devote themselves to skills development, personal growthor participation in community empowerment initiatives;• training initiatives involving Enel people in the role of“Internal Trainers” and which in the last year saw morethan 500,000 hours delivered with an average of about
8 hours per person;• the global “Train the Trainers” project, which aims toidentify new trainers and strengthen their role within our
corporate culture, making it global and sustainable overtime, enhancing talent and increasing the effectivenessof training. In 2022, four training sessions involving about
100 in-house Italian trainers were organized, and new
sessions will be delivered in Italy and globally in 2023.
Another strategic pillar for Enel, also present in the Charterof the Person, concerns “retraining and professional updating, up/reskilling, self-learning and knowledge transfer”. In order to support the green and digital transition,enhance innovation, economic growth, promote economic and social inclusion and ensure quality employment, thevarious Schools & Academies have disseminated programs
for upgrading existing skills to access more advanced career paths (upskilling) and learning new skills (reskilling),
also enhancing transversal and soft skills. These pathways
were also implemented in collaboration with university andacademic partners.
During 2022, the cost dedicated to training was approximately 30 million euros, with an average cost per employee of 455 euros; training involved 96% of the population
with more than 3.1 million hours dedicated to cultural

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217evolution (up from around 2.9 million hours in the previousyear), amounting to more than 47 average hours per capita(over 44 average hours per capita in 2021). Of these, hours
dedicated to up/reskilling amounted to more than 1.3 million, or about 42% of the total, while those dedicated tohuman skills amounted to about 380,000, or 12%.
In 2022, the process of evolution towards a new training
model led to the adoption of a more flexible, high-frequency and continuous type of delivery, in different the-matic areas, based on micro-learning, which made it possible to provide more courses and thus involve more people. On the other hand, this strategy led to a decrease in
the number of total training hours in some areas, due tothe short duration of the courses and the already highgeneral level of specialization, such as in the case of digitalskills, for which 430,000 hours were provided (14% of thetotal training hours), which is lower than the targets
planned for 2022 (20%).

Digital skills
for the new generations
and to promote multiculturalism
and inclusion

POWERCODERS PROJECT

Learning through play: the CODY PROJECT
There is no sustainable development without quality
education that is inclusive and equitable in ensuringcontinuous learning. Sustainable development today isinseparable from digital transformation, and it is within
this framework that the subject of technology also
becomes an educational tool at the service of training
and promotes learning that is customized to contexts andneeds, starting with young students.
The Enel Cody Robot Adventure initiative, in partnershipwith the multi-channel community-driven developer
platform Codemotion, was created precisely to help
prepare students for future challenges as key players in
the digital transformation. Enel Cody Robot Adventure isin fact an online educational game made of challenges
that, through gamification, accompanies children
and young people to learn coding, logic concepts,
computational thinking, sequencing and problem solving
in a simple and interactive way. The logic behind the Enel
Cody Robot Adventure is that of visual coding throughthe block programming system: each participant canintuitively solve the challenges set, learning while having
fun. The aim is therefore to get children and young peopleinterested in some digital skills that are essential for their
future, such as robotics and programming, stimulating
curiosity and creativity, while discovering the main
aspects of the Company’s strategy and values.

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For us, diversity is a value and an accelerator ofknowledge sharing and intermingling of experience. It
is an indispensable factor of human enrichment, before
that of professional enrichment, that training triggers
to accompany the energy and digital transformation
process and to provide a concrete opportunity for
employment for the most vulnerable.
It was with this conviction, as part of the ongoingcommitment to initiatives that enhance multiculturalismand digital skills, which are indispensable for the futureof innovation in our ecosystem and fundamental for therealization of industrial goals and sustainable progress,
that the partnership with Powercoders Italia waslaunched.
In 2022, Enel became part of the Powercoders Italia
project, a computer programming (coding) academy
for refugees. It thus became part of a network that
already included Reale Foundation, Fondazione Italiana
Accenture, in collaboration with UNHCR – UN Refugee
Agency in Italy, which offers three-month intensive
courses and placement in companies operating in the
IT sector, with six-month paid internships. As of 2022,
Powercoders has extended participation in training to
the so-called NEETs (Not in Education, Employment orTraining).
Underlying the project is the desire to promote cultural
diversity and meet the labor market’s need for digitalprofiles with knowledge of programming languages.
Bringing together people from different backgrounds
and cultures, with different aptitudes and experiences,
triggers creativity and innovation through an intensive
and specialized training model that enables those withbasic coding skills to obtain a diploma certifying thatthey are prepared for the workplace. This project, which

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dovetails neatly into the broader ongoing transitionand digitalization process, promotes the value of
cultural diversity and equal opportunities, encourages
the expression of uniqueness in teamwork and theemployment of vulnerable people, and at the same time
meets the need to bridge the “digital shortage”.

Valuing and enhancing
our people
2022 saw the widespread dissemination of the new “Gentle Leadership Model”, which is based on the importance ofcombining well-being and motivation to generate sustainable results over time. In this context is included the quantitative and qualitative performance appraisal process for
2022, which involved, as always, the people of the Group
at different levels, in a process of constant exchange andcomparison that shifts the focus toward the organizational
network as a model of growth and self-empowerment, as
opposed to a hierarchical model.
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 Code of Ethics.
The program, which has involved 100% of the Group’s eligible people,(2) comprises three interdependent dimensions,with three discussion meetings between managers andemployees over the course of the year:• “Talent”, consisting of highlighting one’s individual skills
based on the 15 Soft Skills Model and linked to the 4(2)3Materiality analysis

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The training course, which ended in December andwas supported and underwritten by Enel, resulted in 25
students of different nationalities (i.e., Afghanistan, Sierra
Leone, Nigeria, Syria, Ukraine, Liberia, Cameroon, India,
Eritrea, Ethiopia, Bhutan and Italy) aged between 21 and40, being awarded diplomas.
Obtaining the qualification allowed the new graduates
to enter the selection circuit of companies interested
in digital profiles and to take advantage of job
opportunities that Enel also offered.
The collaboration undertaken represents a modelof social innovation aimed at creating shared value
through the inclusion of the most vulnerable segmentsof the workforce, in the conviction that it is increasingly
important to help them build the necessary digital skills
to seize the opportunities present in the labor market
and ensure an increasingly inclusive and sustainablesocio-economic development that is enriched by thecontribution and qualities of everyone.

Open Power values of Trust, Responsibility, Innovation
and Proactivity;• “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 visa-vis their staff, to achieve professional goals basedon objectives assigned by the manager or proactively
self-proposed by the staff themselves.
With a view to increasingly enhancing the value of the individual, 2022 saw the transition from the system basedon assessment for access to managerial positions to thedevelopment of an empowerment path that supports
people in becoming aware of their talents, skills, aptitudes,
orientations and aspirations, supporting them in the mostcomplex organizational roles. In this context, new selection
criteria were introduced in the annual succession plan for
management positions, aimed at including and enhancing diversity. In particular, the age limit for access to thesuccession plan has been removed, and a criterion was introduced to ensure a fair representation of women among
the successors, and the inclusion of white collar was encouraged.

Eligible and reachable: those who have a permanent contract and were employed and active in the relevant evaluation period during the three periods of 2022.

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Listening and dialogue
2-29
Enel has always been keen to promote initiatives aimed atlistening to Group employees. At the end of 2022, a newwave of Open Listening was launched, a global listening
channel aimed at surveying the corporate climate periodically throughout the year. 75.6% of the Group’s employees
responded to the 2022 survey, providing useful insights
into their mood, well-being and job satisfaction throughconstant listening on issues relevant to the Group (including work-life balance, networking, training, diversity andinclusion), with an overall job satisfaction (engagement)
rate of 89.6% of those involved.
Constant listening aims to put people at the center of theGroup’s strategy, which increasingly uses analytics to respond to different needs with targeted action plans.
Other listening initiatives were carried out in relation towell-being and disability (see section “The value of uniqueness and care” of this chapter).
Another essential element in listening to and engaging
our people are the People Business Partners, figures dedicated to listening and dialogue with people, able to grasp
individual aspirations and integrate them with the organization’s needs.

Finally, Enel considers internal communication a mainstay
in the creation of corporate culture, people growth andthe growth of the organization, stimulating and promoting
the exchange of information, know-how and experience.
Internal communications are also the main vector to disseminate the Enel strategy and the objectives identified
for the near future. In this regard, the periodic “Strategicalignment tracking” survey, an additional listening tool
used to monitor employee sentiment and understand theirlevel of knowledge with regard to specific projects targeted at them, showed that, among the internal projects
aimed at developing and improving employee well-being
and quality of work, employees give the highest priority to
the following:• People caring and well-being;• Job opportunity;• Innovation and personal entrepreneurship.
With regard to Enel’s projects and initiatives that contribute to the improvement of the communities in which theCompany is present, the following are those considered by
employees to be the most important to pursue:• Customer centricity;• Contributing to the SDGs;• Technological innovation.

The value of uniqueness and care
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405-1

At Enel, inclusion, well-being, participation and value creation are closely linked, as also indicated in the Charter of
the Person (see the box in this chapter). In fact, inclusion
means enhancing and expressing the unique mix of talents, skills, aptitudes, visible and invisible aspects of eachof our people, so as to ensure well-being and motivation,bringing out the unexpressed potential within the organization and thus contributing to growth. This is possible
through actions that spread the culture of inclusiveness at
all levels of the organization and act on the enhancementof individual specificities, the uniqueness of the person
and care in life situations that impact on work by creatingawareness, relationships and participation.

The steps of inclusion in Enel
The steps leading to the current state begin in 2013 with the
publication of the Policy on Human Rights, 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. 2019 also saw the addition of the Workplace Harassment Policy, which introduced the themes ofrespect, integrity and individual dignity in the workplace inthe prevention of all types of harassment, principles thatwere the basis of the Statement against Harassment in theworkplace, published on Enel’s website(3) in 2020. In 2021,(3) https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/enel-statement-against-harassment.pdf.

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the Global Digital Accessibility Policy was issued to ensure
equal access to digital information and systems.
Governance on the issues of uniqueness and people careis entrusted to a dedicated unit at Holding level, namely,
People Care and Diversity Management, which has the taskof defining and implementing initiatives at global level, ensuring the coordination and monitoring of local events andthe sharing of best practices. At the local level there are also
specific “Equal Opportunity Committees” in Italy and Spain,
in which the social partners also participate, which contribute to the identification of needs and the proposal of solutions on inclusion issues, while in Colombia, Peru, and Mexico 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 theactivation of alliances and collaborations with the external
ecosystem of associations and networks, which are committed to supporting companies and institutions. In many
countries, there are active partnerships with internationalorganizations that operate in different countries and regions or are in the process of internationalization.
In 2022, Enel actively participated in the D&I round tablesof the Business Commission to Tackle Inequality coordinated by the World Business Council for Sustainable Development (WBCSD) and the Business for Inclusive Growth,
the partnership between OECD and the coalition of CEOs ofcompanies united by their commitment to tackle inequalityof income and opportunity.
On cross-cutting issues, for example, Italy and Brazil are partof the UN Global Compact Network, Italy is associated with
Fondazione Sodalitas and is a signatory of the EU Diversity
Charter, while Brazil collaborates on equity and human rights
with the Ethos Institute.
On gender issues, Brazil, Costa Rica and Colombia are signatories of the WEP (Women Empowerment Principles), Colombia is certified Equipares, the USA and Canada are activein the Target Gender Equality Network and the Women’s Energy Network, while Italy has participated in the Target Gender Equality Accelerator round tables.
In terms of LGBTQ+ rights, Chile and Mexico are associatedwith Pride Connection and Italy with Parks Liberi e Uguali,
the USA and Canada are affiliated with the Human Rights
Campaign, while to promote the attraction of young talent
Guatemala is associated with the South American Employees for Youth network.
Enel also supports the internationalization of local associations and networks: in Italy, for example, it participates in inter-company working groups to expand the scope of actionof Valore D, of which it is a founding member, and of the Elis
Consortium, which supports the Italian national education
system in the training of young people with specific attention to girls and their access to STEM professions.

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Networks and/or communities within the Group (Employee
Resource Groups – ERG) on various topics related to inclusion and diversity are growing:• inclusion: the “Comunidad de inclusión” in Spain;• gender: “Yin Yang” in Mexico, “Women in Leadership” inChile, “Women in Energy” in Peru, “Her Community” in
Greece, “The Ladies’ Room” for the Enel X European countries, “Women EmPower” in the United States and Canada,“gender community” in Brazil, “Power Her” in Spain; “WIL –Women innovation lab” in Chile;• disability: the global “Disability community network” dedicated to the focal points for disability, the “Comunidad deinclusión” in Spain, the “Disability community” in Italy, the“Anne Sullivan” in Mexico and the “People with Disability
community” in Brazil;• ethnicity & cultural diversity: “Ethnicity Community” in Brazil, “Chontalli” and “Expat network” in Mexico, “Cultural Power” in the United States and Canada;• LGBTQ+: “Just Be” in Mexico, “Un equipo con orgullo” inChile, “LGBTQ+ community” in Spain, “Pride in Power” in the
United States and Canada, “LGBTQ+ community” in Brazil;• age: “Beyond Generations” in Mexico, “Generations community” in Brazil;• care: “Parenting” in Mexico;• veterans: “Proud To Serve” in the United States and Canada;• well-being: “Empowerment and Balance” in the UnitedStates and Canada.

An evidence-based inclusive
cultureSpreading the culture of inclusion at Enel also means measuring and setting precise targets. That is why an essential
part of our work is dedicated to turning phenomena into
numbers and driving change from an analysis thereof. In
2022, the People Care and D&I dashboard was implemented, allowing stakeholders to gain visibility into outcomes
and trends to guide strategies.
It represents an approach to the individual that is embodied
in the definition of a specific diversity policy regarding thecomposition of the Board of Directors(4) and specific objectives and actions published in the Plan and in the Sustainability Report, approved by the corporate bodies.
Specifically:• carry out an assessment of the general level of inclusion;• 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;(4) 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.

Empowering Enel people221• promote projects for the inclusion of Enel people withdisabilities at all stages of the employee journey;• promote the dissemination of a bias-free culture, inter-culturally sensitive initiatives and flexible forms ofworking arrangements.

The proven commitment and transparency to gender inclusion has been confirmed by Enel’s presence in major
ESG rankings, ratings, and indices (see the chapter “We
empower sustainable progress”):• inclusion for the fourth time of the Group and its subsidiaries Endesa and Enel Chile in Bloomberg’s Gender
Equality Index, which recognized in particular innovative
practices in terms of gender diversity, conciliation andharassment prevention;• confirmed for the fourth consecutive year as being
among the top 100 companies, and first Italian company,of Equileap’s Gender Equality Global Report & Ranking
for promoting gender diversity, well-being, work-life integration and ensuring a working environment that respects human rights and is free from harassment;• confirmed in the Refinitiv Diversity and Inclusion Index,
ranked first in the industry grouping “Electric Utilities
and Independent Power Producers” and 30th in the top
100 for initiatives in terms of gender diversity, disability
and work-life balance.
At national level, Spain was awarded the “Distintivo de Igualdad” en la Empresa by the Ministry of Equal Opportunities, the “Distintivo de Igualidad” award by the “Club de
Excelencia en Sostenibilidad” and received the Pioneras ITaward by the College of Telecommunications Engineers for
STEM promotion initiatives. In addition, Mexico once again
received the Distintivo “Éntrale” for initiatives implemented for the inclusion of people with disabilities; Enel North
America for the second time, and the Enel Group for the
first time, were also included in the Disability Equality Index.

Uniqueness that makes
the difference
At Enel, the evolution of the culture of inclusion has been
supported over the years by intensive communications
and awareness-raising at every level and in every organizational context.
Each year, a specific theme has been developed that has inspired both the campaigns and the numerous events held.
In 2022, the concept of the uniqueness of the individual in
its relational and organizational dimensions was exploredwith the global event YOUniqueness makes the difference.
The dissemination of awareness-raising campaigns on theissues of bias and harassment also continued with the de-livery of the two global courses:• Beyond Bias, an educational initiative that promotes
awareness of the main prejudices we may encounterin the working environment, through ironic and surreal sketches that indicate possible avenues of escape to
avoid falling into the trap. As of 2022, the course is assigned to the entire Company population and has seen
the involvement of more than 33% of assignees andabout 26% of managers and top managers;• Harassment in the Workplace explores, in fictional form,
four realistic cases of harassment related to age, disability, LGBTQ+ and sexual discrimination, in various typesof conduct (visual, verbal, disparaging). The course illustrates Enel’s Global Harassment Policy by providing hints
for recognizing cases of harassment and indicating preventive behavior. As of 2022 it is delivered to the entire
corporate population(5) and has seen the involvement of
more than 32% of the assignees.
On the other hand, at Country level, there are several initiatives for the prevention of harassment, such as Chile’s“#RespetarEsEnergía” campaign.

The power of intergenerationality
The dimension of intergenerationality is an increasingly central and relevant issue for companies and institutions, and theexchange of skills and experience is indeed a key element forvalue creation.
This is why the global People EngAger project was conceived. It introduces a resource recognized and certified by
the Company with the aim of supporting the evolution process in the organization both in the phase of new hires andin the internal mobility between functions, business areasand countries where the Group maintains a presence. This
resource enables intergenerational exchange by stimulating
dialogue on values, experiences and skills, ensuring the ability
to navigate the complexity of the context independently andacquire rapidly the knowledge associated with the role.
Several initiatives have been developed on the subject in different countries:• Italy: led the webinar “Generations Included” which explores
the diversity of each generation and its biases, with the aimof creating cross-generational collaboration networks;• Spain: continues with the “Nuestros mayores valores” initiative to recognize the talent of more experienced colleagues;• Chile: launched communication campaigns for the International Youth Day and International Day of Older Persons
with the aim of generating intrinsic motivation based on
sharing between seniors and juniors;• Mexico: organized a training webinar on personal financefor millennials;(5) Except for the USA and Canada where courses required by local regulations are provided.

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2

We empower sustainable progress• Peru: with the “Diversiedades” initiative, it created specificworkshops with the aim of promoting multi-generational
talent within the organization;• Brazil: implemented initiatives to strengthen integration
without age discrimination, through activities such as the“Mi experiencia Enel” meeting for young professionals;• US: “Diversity, Sensitivity & Inclusion in the Workplace”
course was launched in 2022 with a focus on age discrimination as well as gender, disability and LGBTQ+;• Colombia: conducted training sessions for trainees and apprentices on personal skills and branding held by colleagues
and launched the “Potential Talent” project, which promotes
customized development paths for young talents.

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,
shed light on stereotypes and explore specific aspects ofpeople’s lives.
Among the specific measures, in addition to the parental
leave, already recognized, in 2022 Italy extended to samesex couples in civil marriages the system of protections
and facilities for parental and care purposes (parental leave
for childcare, leave and absences recognized for parents
with severely disabled children and in the event of deathor serious infirmity of the child), while in Peru the extensionof health insurance coverage to same-sex cohabiting couples is active. In Italy and Chile, the “Guidelines on Gender
Transition for Inclusion” of colleagues in transition havealso been adopted.
Various initiatives have been organized to promote thecreation of a safe and inclusive working environment andto support colleagues in their role as parents, also in collaboration with external associations and networks that
promote the enhancement of talent regardless of identity,
gender expression and sexual orientation (Parks Liberi e
Uguali in Italy, the REDI network in Spain, Pride Connection in Colombia, Chile and Mexico). In Argentina, webinars
were organized on gender prejudice. Italy offered meetings targeted at all colleagues and one entitled “Do I tell
my parents or not?”, aimed at parents with homosexual,
bisexual and transgender children. The USA and Canada
spread awareness on LGTBQ+ history and equal rights.
Brazil has launched a number of communication campaigns and webinars to disseminate and raise awarenessof the issue. Chile has launched an initiative aimed at theinternal LGBTQ+ group and a communication campaign toraise awareness of the use of inclusive language throughthe #mipronombre initiative, which calls for respect forgender identities and the promotion of recognition for
all, also setting up sharing spaces where sexual diversity
can be openly discussed and ideas exchanged. Mexico

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participated in the “Pride Race”. Colombia was awarded
the Friendly Biz Corporate seal and produced a podcast
on human rights and sexual diversity. Costa Rica and Peru
respectively offered in-depth discussions on sexuality anda training program divided into 4 meetings to explore different topics related to the LGBTQ+ world.

Cultures in dialogue
With 86 nationalities and 24 languages, Enel considers cultural and ethnic diversity to be an extraordinary asset andis committed to promoting and enhancing knowledge, relationship and intermingling among different cultures.
In order to carry out a comprehensive mapping of ethnic
and cultural diversity, please note that in most of the countries where we are present there are legal and privacy protection constraints that do not allow its collection, while inArgentina, Costa Rica, Guatemala, Panama, Mexico, Peru,
South Africa, Canada, Brazil and the United States it is only
possible to request such information on a voluntary basis.
Specific initiatives in favor of intercultural diversity in its various forms have been launched in many countries:• Italy: the intercultural awareness webinar “Different fromwhom?” was organized and the project Powercoders waslaunched (see dedicated box);• Brazil: with the “Inclusive Estagio” project, more than 30%
of internship positions were filled by black candidates anddays against racial discrimination were celebrated;• Chile: organized webinars on native cultures, dedicatedan initiative for expat colleagues and celebrated Migrants’Day;• Colombia and Central America (Panama, Costa Rica andGuatemala): a memo was issued to promote the cultural and linguistic integration of colleagues from the four
countries;• Peru: webinars, a podcast and a challenge on intercultural
diversity were realized;• Mexico: produced a guide on the country, its traditions
and culture for the integration of new colleagues fromother countries;• North America: implemented awareness-raising initiatives during Black History Month and through the “Cultural
Power” ERG.
At a global level, a mentor is provided to foster the integration of expatriate colleagues in the destination countries. In
addition, to train interpersonal sensitivity and communication and reduce the risk of misunderstandings in multicultural contexts, the global online course WIRED – Connecting Intercultural Skills is freely available for all colleagues on
e-ducation. The course allows for reflection on the biases
and coaching skills that foster intercultural inclusion and, ina specific section, offer monographic guides that explore
the specificities of different cultural contexts.

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Taking action to close
the gender gap
3-3

405-1 405-2

Enel’s efforts to close the gender gap and ensure pay equity continue with tangible results through actions andinitiatives that influence all phases of women’s journey inthe organization: from representation at entry level to empowerment and development in positions of responsibility,
paying attention to various relevant moments in life, suchas becoming parents and personal or family care.

Gender gap:
the action plan
including direct andindirect measures

44.4
%
women

15

on the BoD%
women in executive
positions23.4%
women in the%female successors

workforce

24.9%
women managers

46.1
52.2

%
women
in selection pools

GENDER GAP: the action plan,
direct and indirect measures
The action plan consists of measures that directly
and indirectly affect equal pay, given the fact that 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 tasks and seniority
for all new managers through internal development.

• The Board of Directors (BoD) of Enel SpA consists of
44.4% women.

• At the end of 2022, women accounted for 23.4% of theGroup’s entire workforce, up from 22.5% in 2021.

• In 2022, 24.9% of managers were women (23.6% in(6)2021) and held 15% of executive positions (CEO-1) (3out of 20), while 32.6% of middle managers were female (31.4% in 2021).

• By 2022, the presence of women in management suc-cession plans was steadily increasing: 46.1% female
successors in management plans and 50% in top management plans.
• In the past year, the percentage of women in the Groupworking in STEM roles reached 21% compared to 18%
in 2021.
• Selection processes are closely monitored to ensure afair balance of the two genders in the candidate pools,
with a rising trend in the last five years (52.2% in 2022
compared to 39.0% in 2018).(7)(6) Women working in managerial roles (managers and middle managers) in revenue-generating business areas account for 28.3% of the total number of people in these areas, up from 23.3% in the 2021 Report.
(7) Selection processes involving blue-collar workers and similar technical roles are not included (as of 2021), nor is the US and Canadian perimeter, due to local
anti-discrimination legislation that does not allow gender monitoring at the recruiting stage.

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The Long-Term-Incentive Plan 2022 supports thesetrends by confirming a performance target, with anincreased weight from 5% to 10% of the total, represented
by the “percentage of women in top management
succession plans” at the end of 2024 with the aim ofgiving continuity to a policy of preparing a suitableaudience for managerial appointments in the near future.
The processes for managing succession plans and salary
reviews are governed by specific policies, and constantmonitoring of remuneration for all positions is carriedout. A dedicated budget has been allocated beginning2019 to ensure equal pay for equal work, in cases where amismatch is found.
For the purpose of monitoring equal pay, an overall
maintenance of the Equal Remuneration Ratio (ERR) of
81% was noted. The calculation of the ERR, based on theaggregate average of women’s wages over the averageof men’s wages, is influenced by the steadily increasing
trend over the years in the number of women, whose
shorter tenures, given their seniority in the position, go toaffect the average gender remuneration in the short andmedium term.

As far as the parental dimension globally there is the “Parental Program”, which aims to promote organizational
and personal awareness of the culture of parenting and toreconcile personal and professional needs related to thisphase of life, which is crucial for both parental roles. The
program is based on the values of trust, care and engagement, and provides for a structured process of interviews
between the new parent, the manager and the People
Business Partner, before and after maternity and paternity leave. The program is supported by a single information
point that offers all the information, services and training
initiatives relevant in facilitating a return to the Company,in supporting work-life balance, and in promoting the motivation and organization of activities. In the various coun-tries where the Group is present, this program is complemented by further local initiatives to support parenthood.

To confirm its commitment to these issues, since 2021
Enel has been participating in the “Equal by 30” campaign
promoted by Clean Energy Ministerial (CEM), the initiative
whereby various public and private sector organizations
have committed to promoting gender equality in termsof pay, leadership and opportunities in the clean energy
sector by 2030. Three specific commitments have been
made to raising the awareness of an increasing numberof girls towards STEM disciplines and professions, fair
representation of women in selection shortlists, andgrowth in the number of women in managerial positions.

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. These STEM awareness and orientation initiatives involved almost 10,000 female high school students
in 2022 and more than 30,000 female students in the last
six years.(8)(8) From 2022, the figure includes initiatives involving only primary and secondary schools.

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Back to school:
Enel’s first global STEM
and empowerment initiative
2022 saw the launch of Back to school, a global initiative
involving no less than 12 countries (Spain, Italy, Greece,
South Africa, India and then Colombia, Chile, Peru, Brazil,
Argentina, Romania, USA and Canada) and more than
4,000 students, almost 76% of them girls.
Simplicity, scalability and experiential learning are
the hallmarks that have made this initiative a successstory featuring 68 female STEM professionals who
have returned to schools – in some cases to the very
schools from which they graduated – to talk about theirexperiences.
Back to school brings together two mutually enriching
worlds. Young people in search of prospects and theawareness that will allow them to choose the educational
path to forge the future they desire, and female managers
whose generosity and empathy point to “new scenarios”,
overcoming the “walls” of stereotypes and prejudices that
unfortunately still limit women’s access to technical andscientific faculties.
Through Back to school, students in their third and fourthyear of high school have had and will have the opportunity
to access career counselling, have conversations on
specific topics to make their study and professional
choices more informed, and have shadowing meetings,
i.e. days spent working alongside a professional to begin
to understand the mechanisms, the language of theworkplace and the opportunities offered by STEM fields ofstudy.
In Italy, the Back to school program also included thelaunch of a contest that saw a number of female students
awarded financial contributions to cover university fees

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for enrolling in a STEM faculty.

• “The empathetic relationship is the key to the successof the project because, on the one hand, it strengthens
the girls’ desire to emulate and, on the other, it
increases the passion and generosity of the female
colleagues who tell of their experience”, says Silvana
Ceravolo, head of Rewarding and Mobility, who isbehind the project.
• “Having an outlook on the future and work can help toovercome one’s limitations and not be afraid to embark
on technical paths”. Gaia, Italy.
• “During the presentation I was very impressed. It wasvery different from what my classmates and I were used
to, a new method of teaching”. Aggeletou, Greece.
• “I want to become an engineer and this experiencehas offered me insights for my professional growth”.
Mapanzule, South Africa.
It was an important and generative experience forour colleagues as well. We gathered feedback andimpressions from some of them:• “It was generative to share my knowledge and theknowledge that there are no limits”, says Alisha, windand solar plant manager.
• “Typical female skills are also needed in technical fields”.
Daniela, head of Spare Parts Optimization.
• “It was nice to interact with the students and tell themthat there is no such thing as male or female work”, are
the words of Sonia, plant supervisor.
Finally, the contribution of a manager, Aurora Viola, headof Market Italy and mother of a STEM girl: “The future iscalled STEM, as all professions will need these skills andwomen cannot miss this opportunity. I tell girls not toimitate others in order to be accepted, not to be afraid ofmaking mistakes and feel guilty about it, but always to try
again. Back to school is an opportunity to break down the
many stereotypes still present”.

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There are also numerous STEM initiatives implemented locally in the various countries where the Group is present.
In particular, in Italy with the “STEM Lab”, online introduction courses in coding have been activated for all children
and young children of employees (aged 8 to 10) to support digital literacy (see the “Powercoders Project” box). In
Colombia and Central America, we highlight the “Panel demujeres Enel sin fronteras” project, in which female colleagues share the challenges, opportunities and perspectives for women working in technical contexts. In Romania,
with “Empower girls”, workshops were initiated with upper
secondary school students to inspire and orient them towards STEM studies. In Spain, the “Ella te cuenta” initiative
continues, through webinars conducted by students who
have been awarded scholarships from the “FEU Instituteof Technology”, to stress the importance of technical skills
to meet major global challenges, and the “Code” training
project for the children of colleagues has been activated.
“Students job shadowing” in Brazil is an important opportunity for young female students to experience the workplace, supported by an Enel professional.
Numerous initiatives have been implemented to develop
women’s empowerment within the organization, ranging
from cultural change, managerial development and mentoring, coaching and shadowing programs to training, upskilling and reskilling.
Based on the experience of the “Empowering Conversations”, i.e. the dialogues of six female managers on the im-3

Materiality analysis

4

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Appendix

portance of leadership inspired by female role models, asmany video clips were produced, translated into the main
languages and made available on the e-learning platform
for all colleagues.
Through the Gender Equality and Women Empowerment(G.E.W.E.) program, a global observatory of country-led
initiatives on the subject has been set up. There are morethan 200 initiatives covering all stages of women’s careers
within the organization as well as those aimed at attracting
female talent from outside.
Some initiatives have been recognized as good practices
and a program has been launched to extend them to different countries:• “Getting to know each other”, mentoring and shadowing
meetings between managers and young women aimed
at fostering their visibility in the organization;• “WomENergy – Feminine Synergy”, a networking event
between Business Lines involving female managers
and female colleagues with the aim of expanding theirprofessional network and encouraging the increase of
women in succession plans;• “Gender awareness”, an initiative launched in Brazil andaimed at People Business Partners to disseminate a gender equality culture at all levels of the organization;• “WoMen in”, an initiative launched in Mexico involving focus groups composed of representative samples of thecorporate population to identify actions to implement
and support gender equality.

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 byinnovating processes and products.
Globally, there are 2,129 colleagues with disabilities, morethan 70% of whom are 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 fullautonomy, regardless of any disability. In particular, there
is a focal point for Enel people with disabilities in all countries and 2022 saw the launch of new global initiatives, including:• activation of Inclusive Travel services to ensure accommodation and travel experience for colleagues with disabilities;• launch of the Inclusive Internship project with the activation of internships in Italy;

Empowering Enel people227• participation in the Generation Valuable project pro(9)moted by the Valuable500 network with the aim of
spreading the culture of inclusion and empowerment ofpeople with disabilities through mentoring meetings between talented colleagues and managers;• design of an awareness-raising initiative to spreadknowledge of the application principles of Design for
All to business processes and contexts to train an inclusive mindset throughout the corporate populationand the global dissemination of guidelines to ensure theadoption of accessibility principles for the realization ofe-learning content.
Since 2020, most of the disability initiatives have been
merged into the Value for Disability project, which is described in detail in the chapter “Managing human rights”.

Remote working and well-being
In 2022, more than 36,000 people worked in hybrid
modes, alternating between remote working and in-person activities. A transformation of the way we work alreadystarted in 2016 and has now extended on a global scale
thanks to the Group’s impressive technological evolution.
In March 2022 in Italy, the New Way of Working (NWOW)

ITALY

SPAIN

ROMANIAagreement was signed with national trade unions, regulating the new remote working arrangements, canceling andreplacing previous agreements and becoming fully operational from October 2022. The new agreement introduces
a highly innovative system with extensive flexibility measures, providing for the alternation of on-site working days
for so-called “high-synergy” activities with remote working days for which a ceiling of 60% of monthly days is set
aside for remote activities. There is also the possibility ofrequesting additional days for special situations (disabled,
caregivers, parents of small children, etc.), i.e. a maximumof 40% for activities that can be partially remote, as wellas organizational measures to guarantee and protect thewell-being of workers and an easier work-life balance, theright to switch off, the provision of mobile connectivity for
all remote workers, and the recognition of meal vouchers
for remote working days. Consistent with the principles
outlined in the Italian agreement on the new work model,
trade union and/or individual agreements were also signedin the other main countries in which the Group is present
to make hybrid work a global reality.
To date there are many flexibility measures active in different countries, as shown in the following table:NORTH
AMERICALATIN
AMERICA(1)AFRICA, ASIA,
OCEANIAEUROPEAND EURO
MEDITERRANEANAFFAIRS

Part timeSmartworking
Telework
Seasonalschedule
Time bankFlexibletime
Short week
(1)

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); Costa Rica, Panama, Guatemala (smart working, flexible time, short week,
telework).

(9) https://www.thevaluable500.com/update/generation-valuable.

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The global well-being
framework
In 2021, together with our people (in co-creation mode), a
global well-being framework was defined, based on eightpillars that affect overall satisfaction with the centrality ofpeople in mind, specifically considering the needs thathave emerged:• psychological well-being, more broadly “feelingcomfortable in one’s own skin”, involving themanagement of perceived stress and individual skills ofstress coping;• work-life harmony, balance between working andfamily life, involving the management of working timeand disconnection, taking due account of the person’sfamily commitments (children, caring for elderly and/or
disabled relatives);• physical well-being, intended as inspiration to take careof one’s own physical health;• social well-being, intended as a sense of connection
and belonging to the communities in which the person
participates socially;• economic well-being, intended as a sense ofsatisfaction with the family’s economic situation;• sense of protection, intended as a sense of security
perceived by the person with respect to the occurrenceof unpleasant events;• ethical well-being, intended as satisfaction with thevalue, meaning and purpose of the person’s life;• cultural well-being, intended as “feeling encouraged to
grow and learn new things”.
During 2021, the first global well-being survey was
conducted with the aim of measuring the level ofcorporate well-being, defining the most important
initiatives for people, and consolidating its global model,using a metric common to the different countries in3

Materiality analysis

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Appendix

which Enel operates, but also capable of capturingcross-cultural differences. Through the involvement of
an international, heterogeneous and multicultural team,the results enabled the definition of the most important
actions to be taken.
Survey 2022 saw an expanded survey on the topic ofmotivation declined on four factors: purpose, mastery,
relationship, and autonomy.
At the end of 2022, Enel also included the public target
linked to the general well-being index for the years 20232025 among the targets of the Sustainability Plan. This
index measures the percentage of respondents fairly orvery satisfied with their overall well-being (both personal
and work life) and stands at 60% in the past year.
With the purpose of increasing people’s well-being,
the Global Wellness Program was launched, targetedat all Enel people and designed with an experience thatcombines physical and digital (specific “Me-Wellbeing”
section on the Company’s “ME” portal). The programcontent will be expanded continuously to keep people
engaged. The first release covered psychological wellbeing and relational and emotional intelligence, allowing
people to use the following tools on a voluntary basis:anonymous self-assessment tests on their emotional,
physical and social state; tools to plan meetings withcolleagues aimed at improving relational well-being; awell-being advisor who allows people to exchange tips on
behaviors that impact well-being; webinars on focusing
skills, stress management and the importance of social
relationships. To stimulate adoption of the program anda culture inspired by self-awareness of one’s own levelof well-being, a reward scheme has been associatedfor those who use the program tools on a regular basis,
enabling them to have more time for themselves (wellbeing days) or, alternatively, pathways aimed at further
increasing their level of well-being.
In order to spread the culture of well-being and offer
support to colleagues with a view to work-life harmony,
2022 also saw the birth of the global bimonthly Wellbeing newsletter and the introduction of a new guidance
resource: the Well-being Ambassador. Training of the first
Italian ambassadors was completed and was commenced
for the other countries.
In general, at Enel well-being is expressed in its various
meanings with initiatives that also aim to increaseawareness of the importance of a correct diet, throughworkshops and nutritional consultations, without
neglecting the area of physical well-being understoodas motor activity. In Italy, for example, yoga and pilates
classes held on-site have been replaced and flanked
by online courses and customized subscriptions with
Gympass, available in several countries.

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Caring for all
3-3

401-2

We promote the value of care in all situations, including
contingencies, in which a person may find themselves
during their working life, and we have defined benefits andservices that support work-life integration. A few examples
of initiatives in the different countries where the Group
maintains a presence are provided below.

Caring for people“MaCro@Work Caring Program”. The MaCro@Work Caring Program is a global initiative launched in Italy andaimed at Enel people suffering from a chronic disease. The
first step was the training and creation of the network ofHeart Managers, People & Business Partners who voluntarily volunteered to support “vulnerable” colleagues by providing active listening and help in seeking the most appropriate solution to create an inclusive environment for thecolleague and the entire work context of reference. During2022, the project was extended to Spain, Argentina, Brazil, Mexico and Central America, and Romania, and in early2023 it will be made operational with the creation of about
50 more Heart Managers globally. The project received the
DNA – Difference iN Addition Award in Italy, which recognizes concrete good practices of inclusion in corporate
contexts.
HeLP Me: a solidarity project that has made it possible tocreate the first corporate network in Italy based on volunteering that connects colleagues in a situation of need,momentary or permanent, with those willing to offer theirtime and lend a hand.
On the subject of psychological well-being, support services were reinforced during the Covid-19 pandemic andthereafter. In particular, assistance is provided in Brazil, Italy, Spain, Peru, Romania, the USA and Canada, Colombia,
Costa Rica, Guatemala, Panama, India, South Africa andArgentina, covering more than 95% of Enel’s people.
There are also several initiatives implemented on the topic
of vulnerability.
In Greece, in November 2022, Enel Green Power won theGold Award on the “Break the Stigma” dimension for its
initiatives to promote an open and inclusive culture of psychological well-being free of prejudice and stereotypes.
Supporting took the form of workshops, specific training
such as mindfulness, and ad hoc sessions to promote a
holistic approach to well-being.

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Caring for families
In most countries active services and support are provided,
including financially, for childcare and focused on motherhood, such as breast-feeding rooms at our major sites.
In Italy, the “Master Care” plan dedicated to caregivers in
the Company is active, and there is an online family counseling service at subsidized costs, “New Parents New Energy” parenting training sessions, and the MAAM-CHILD
Platform that stimulates active reflection on the life parenting experience in order to capitalize on it in the work
context. There were also workshops for employees’ children on coding and STEM subjects. Family services suchas financial support (school book bonus, contributions forkindergarten, school and university, scholarships and conventions with schools) and “time-saving” services are alsoavailable, such as babysitting, care for the elderly and home
support. Since 2022, a care manager service has also been
active in Italy, which consists of a specialized operator who
accompanies the employee caregiver in dealing with a situation of need, offering support in the choice of assistanceand care services best suited to his/her requirements. Numerous initiatives have been introduced, in collaboration
with the mobility manager network, to encourage sustainable travel, including bike sharing, by Enel people, including specific agreements for public transport subscriptions.
Finally, all mothers and fathers of children attending primary school are granted entry permits for their children’s firstday of school.
Also available is the MyWelfare platform, where it is possible to convert the performance bonus into specific welfare goods and services by taking advantage of a tax andeconomic benefits with a 15% premium offered entirely by Enel. In 2022, to support households in coping withincreasing economic hardship, utility costs could also be
reimbursed through MyWelfare.
Spain has a dedicated channel on the Company intranet,
offering a wide variety of products and services at competitive prices, offers for leisure, training, but also the opportunity to make donations for the improvement of theliving conditions of those most in need. An app can also be
downloaded to access various services such as private car
sharing, car cleaning and repairs, a dietician and a travel
agency. Plus, at the Madrid site, a “To-Do room” is available,
offering services to save time that are open all day long(for example, laundry, dyeing, computer repairs, etc.), to
improve work-life balance.
In Colombia, an à la carte platform is available that offers
numerous types of benefits that can be redeemed in realtime according to work-life balance needs, interests or1

Letter to stakeholders

2

We empower sustainable progresscurrent moment in life. During 2022, the organization’s
benefit model saw the “My emotional care” section for
psychological and physical well-being growth.
In Greece, we won the Bronz Award in 2022 for the Parents’ school program, which aims to improve the work-lifebalance of parents with measures including psychologicalsupport and specialized training.

Caring in the organization
In 2021, an analysis was carried out to harmonize the minimum duration of maternity leave within the Group. From2022, Japan, Taiwan, Germany and Panama will therefore
add to the leave required by law to reach a minimum threshold of 80 working days, as is already the case under European legislation, as required by European regulations.(10) As
in 2021 in terms of maternity leave, a similar analysis will be
carried out in 2023 regarding 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 of leave
as well as pay, with potential benefits in the areas of worklife balance and caring for families.
With regard to maternity leave, in more than half of theGroup’s major countries (Argentina, Spain, Mexico, Colombia, Guatemala, Costa Rica, New Zealand, Australia, Brazil,
Germany, Japan, Panama and Taiwan), Enel guarantees anincrease in the number of days of leave compared to what
is provided by local legislation. Specifically, for Japan, Taiwan, Germany and Panama, Enel has supplemented thestatutory leave duration to reach the minimum thresholdof 80 working days, as required under European regulations. In addition, in Peru Enel offers one year of remote
work in addition to that provided for under local legislation, while Argentina, Australia, Brazil and Colombia offer
a substantial number of additional days. In terms of salary,
where the total remuneration is not guaranteed by local
laws, Enel intervenes by bridging the gap to reach 100%coverage. In particular, this occurs in Italy, Romania, North
America, Panama, Guatemala, South Korea, and Greece,
while in all other Group countries, remuneration is already100% guaranteed according to legal requirements.
Specifically, in Italy Enel guarantees 100% coverage compared to the 80% required by law for the five months of3

Materiality analysis

4

Our performance5

Appendix

compulsory leave. The average number of days of fully
paid maternity leave in total for countries that account forover 80% of the global total workforce (Italy, Brazil, Spain,
Argentina and Romania) is 26.8 weeks, with the minimum
offered in Spain (17 weeks).
Also with regard to paternity leave, in some countries
Enel intervenes with additional measures both in terms ofthe number of additional days of leave (Argentina, Spain,
Mexico, Colombia, Guatemala, Costa Rica, Panama, United
Kingdom, Ireland, Chile, Peru, New Zealand, India, Australia,
Greece) and in terms of wages (in Mexico and Greece, Enelcovers any pay gaps guaranteeing 100% pay, and in all other Group countries, remuneration is already 100% guaranteed according to legislative requirements). In particular, in
Italy since 2021, the law requires 10 days of paternity leave
to be paid at 100% of wages, even in the event of adoption.
The average number of days of fully paid paternity leavein countries that account for over 80% of the global total
workforce (Italy, Brazil, Spain, Argentina and Romania) is 3.7
weeks, with the minimum offered in Brazil (1 week).
In terms of parental leave, the measures on offer vary
greatly from one country to another. Italy provides parental
leave of 10 months, shared between the mother and father, in a child’s first 12 years. If the father takes at least 3
months, the total leave rises to 11 months. The collective
agreement pays a salary of 45% for the first month and
40% for the second and third months, compared to the
30% required by law for the first 6 months.
In 2021 in Italy, parental leave was extended to 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 two years.
In Italy, it is also possible to take leave for very serious family
circumstances, and to offer holidays or rest periods froma solidarity point of view (solidarity holidays) to colleagues
in the same company, to help children or adolescents, parents, spouses, civil partners or common-law spouses whoneed constant care or in the event of very serious family
or personal circumstances. As well as holidays donated bycolleagues, Enel provides the same number of days of paid
leave. In Spain, it is also possible to take advantage of daily
flexibility adapted to the temporary needs of the worker, inthe form of a temporary change in working arrangements,
reductions in working hours and leave for family care.

(10) See Council Directive 2010/18/EU of March 8, 2010: https://eur-lex.europa.eu/legal-content/IT/TXT/?qid=1414661428912&uri=CELEX:32010L0018.

Empowering Enel people

231Supplementary healthcare assistance and pension
3-3

401-2

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 “Occupational health and safety”).
For all Italian employees and their dependent family members, in agreement with the trade unions, Enel set up the
Supplementary Healthcare Provision for Enel Group Employees (FISDE) in 1997. The Provision disburses repayments
and redemptions for healthcare expenses, promotes initiatives for the disabled and individuals subject to sociallychallenging situations (drug addiction, alcoholism, learning
difficulties, psychosocial disorders) and sets up preventive
medicine programs. Also in 2022, members were able totake advantage of symposia with the Italian National Council of Psychologists (CNOP) and Italian Psychoanalytic Society (SPI) for psychological support services.
In line with the FISDE solidarity principle, former Enel employees can also continue to benefit from the services offered by the Provision by continuing to pay the membership fees.
Staff support measures also include the option of accessing fixed-contribution and other pension plans, such as
membership of mandatory or optional schemes and theaward of various types of individual benefits in services associated with post-employment benefits provision.
As at December 31, 2022, 81% of employees were covered by the Enel Group pension plan. The largest pension
funds are in Italy (Fopen and Fondenel), Spain and Brazil.

The level of coverage of non-salary benefits(11)
3-3

401-2

The analysis concerned the entire Group workforce, showing a high percentage in terms of access to the main benefits.

The main support initiatives and the extent of their coverage of the Enel workforce are set out below.

Non-salary benefits 100% Enel countries

2022

2021

2022 vs 2021

Covid-19 insurance

99%

100%

-1%

Life insurance

89%

88%

1%

Medical insurance

94%

93%

1%

Pension Fund Membership

81%

81%

-

Additional parental measures (maternity, paternity and parental leave)

94%

94%

-

Meal allowances

89%

86%

3%

Child support initiatives

84%

84%

-

Loans

90%

90%

-

Leisure and cultural initiatives

87%

91%

-4%

(11) Non-salary benefits are the series of goods and services provided by the Company in addition to monetary pay.

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2

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3

Materiality analysis

4

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Appendix

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 Labor 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 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 with the Italian Federations in the sector, andthe global unions IndustriALL and Public Services International, and which is still recognized as a benchmark bestpractice for European and non-European multinationals.
The agreement is based on international human rights andbusiness principles and is inspired by the best and mostadvanced transnational industrial relation systems of thereference multinational groups and institutions on the international level, including the ILO. One of the particularly
significant principles of the GFA is one on remuneration,
whereby the minimum payment made to Group employees
cannot be lower than the level established by the collective
bargaining agreements and legislative and regulatory texts
in the various countries in question, in line with the provisions of the ILO conventions.
On the subject of remuneration, in accordance with therelevant ILO Convention Enel is committed to respecting
the principle of decent work in all countries where it operates. In addition, it continues its commitment to bridging
the gender gap, promoting initiatives to reduce it, where
it exists, and thus to ensure equal pay for equal work as
well as transparency. The principle of equal pay is also
indicated by the Group’s Policy on Human Rights, which
stipulates that all those who work along the entire value
chain are entitled to remuneration in line with the principleof fair compensation for work, of equal pay between maleand female labor for work of equal value, and of minimum
wages not less than those established by collective agreements and current legislative and regulatory treatments ofreference in force in different countries, as established by
ILO conventions. In addition, it is also expressly provided in
the Code of Ethics that upon 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 waythat acceptance of their position is based on an effective

understanding and awareness not only of their duties, butalso and above all of their rights (enshrined in the aforementioned collective agreements). As well as serving as
the basis of the regularity of contracts, this approach enables us to operate fairly at all levels of the Company and in
all the Countries and Regions which Enel is present.
In Enel there are no limits to freedom of association. As
indicated by the GFA and the Policy on Human Rights, Enelrecognizes the right of its employees to form or take partin labor organizations aimed at protecting their interests.
In particular, employees may be represented, in the various generation units, by trade union organizations andother forms of representation elected in compliance withthe legislation and practices in force in the countries concerned. Enel complies with the principle of trade union
independence and does not interfere in any way with theorganization of representation, allowing workers’ representatives access to the workplaces in order to communicate with their members, in compliance with the law andthe industrial relations systems in force in each country.
Enel therefore recognizes as interlocutors the trade unions
that represent workers in the Company, in compliancewith the provisions of national legislation, and adheres tostrict neutrality regarding the choice of workers whether
or not to join a trade union organization and/or the choiceof the union by which to be represented. In the event of
a discrepancy between local and international standards,
the Group strives to apply the provisions that best protect
workers’ rights. Finally, Enel provides adequate information
to its employees and to the trade union organizations that
represent them, in order to facilitate collective bargaining,and provides its people with a full range of information,
including via the Company intranet, concerning collective
labor agreements and trade union agreements, in accordance with current legislation.
As also illustrated in the Policy on Human Rights, collective
bargaining agreements are acknowledged as the main
tool to determine the contractual conditions of its employees and to regulate relations between senior management
and trade unions. In 2022, the percentage of employees
covered by collective bargaining agreements was about
91% (90% in 2021).
At European level, the Agreement on the Enel European
Works Council of 2016, extended in 2022, is confirmed as
one of the most advanced agreements in the EU electricity
sector for its focus on bilateral issues such as occupational
health and safety, 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 the

Empowering Enel people

233electricity 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.
In the various countries in which it maintains a presence,
Enel is committed to managing the transition by entering
into robust dialogue with the trade unions, translating inpractice the principles of the just transition for everyone,
including local communities and contractors, the people
most directly involved in the process of change (see also
the chapter “Our commitment to a just transition: leaving
no one behind”).

First with the Italian trade unions and then with those ofother 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 centrality ofpeople, starting with their well-being and motivation, guaranteeing quality training in terms of self-learning and highsafety standards, rooted in the responsible approach of all(see the dedicated box at the beginning of this chapter).
In the event of organizational changes, timely disclosure
to trade union representatives is required, as indicated in
the table below.

Country

Minimum Period

Legal 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 forthe purpose of notifying any amendment of the essentialconditions 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 organizational changes

Colombia

Neither the law nor collective bargaining provide for a minimum notice period in the event of organizational changes

Italy

25 days. The Company informs the trade unions with a
specific document of its intention to transfer a part of theCompany. In addition, our Industrial Relations system (Art.
9) provides for the prior involvement of trade unions on themain organizational changes in order to share the objectives
and manage their implementation

Peru

Neither the law nor collective bargaining provide for a minimum notice period in the event of organizational changes

Romania

Obligation to inform and consult workers’ representatives on
the Company’s development and to inform them periodically
about the Company’s economic situation. Disclosure to andconsultation with employee representatives regarding therecent and likely development of the Company’s businessand economic situation. Information and consultationof workers’ representatives on decisions that may entail
significant changes in work organization, contractual
relations or labor relations, including but not limited totransfers 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

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Legal provisions (Art. 47, Law no. 428/90 and Art. 9of the collective bargaining agreement, referringto Law no. 428/90)

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Appendix235

Sustainable supply chain

Material topics (I level)

Plan

SDG

• Sustainable supply chain

Doublemateriality

People• Suppliers

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

2023-2025 targets

Tag

99%

100%

S

Qualified suppliers assessed forenvironmental aspects for all productgroups(1) (% qualified suppliers)

99%

100%

E

Qualified suppliers assessed forhuman right or business ethics
aspects for all product groups(1) (%qualified suppliers)

99%

12

Value of coverage of tenders with“sustainability Ks” (% of tenders with“sustainability Ks”/ total tenders)

96%>90% in 2025

S

12

Supplies’ value covered by Carbon
Footprint (CFP) certification

62%

75% in 2025

E

Supplies’ value covered by CFP
certification or CFP estimation frominternational databases(2)

100%

E

Target outdated as 100%coverage was achieved

S

Value of tenders coveragewith mandatory sustainability
requirements(3)37%Supplies’ tenders value covered byranking/target based on carbon
footprint values

68%

8
12

12

Responsible management of the
procurement of goods, services and works

13
12
16

13
12
13

12

12
13

Activities

2022 results

Qualified suppliers assessed for
health and safety aspects for
all product groups(1) (% qualified
suppliers)

Progress

S

100%

S
G

S

50% in 2025

E
S

N.A.

>70% in 2025

E
S

(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) CFP estimation from international database based on LCA (Life Cycle Assessment) methodology.
(3) In addition to the basic contractual clauses regarding health and safety, environment and human rights.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2
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Sustainability
ReportReport2022

Achieved

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Sustainable supply chain﻿

5Appendix237

Sustainablesupply chain

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Appendix

Suppliers
2-6

3-3 204-1 308-1 407-1 408-1 409-1 414-1

The transformation of the energy system,
alongside the digital revolution, entailschanging and evolving the way works are
performed and how goods and services aresupplied. It also means suppliers are essential
partners to achieve sustainable progress
across our operating footprint.
Suppliers are our partners in the journey tosustainable growth. We work with them tomaximize the economic, productive, socialand environmental benefits of the transition.
We strive to create sustainable, innovative,
and circular processes that also enable us tobetter quantify, and thus mitigate, the total
impacts they generate, aware of the need tominimize pressure on critical materials andcomponents through technological innovationand continuous recycling and to support ourpartners’ resilience and repurposing.
All of this underpinned by loyalty, transparency
and collaboration. We ask in addition toguaranteeing the necessary quality standard.
The latter include working conditions, healthand safety, adequate hours worked, rejectionof forced or child labor, respect for personaldignity, nondiscrimination and inclusion ofdiversity, freedom of association and collective
bargaining, and respect for privacy by design
and by default.
All of the above, within a clear code of conduct
framework that includes, to name a few, our
Human Rights Policy, Code of Ethics, Zero
Tolerance of Corruption Plan and our
global compliance programs.

99%

96%

SUPPLIERS QUALIFIED ON HEALTH AND
SAFETY ASPECTS, ENVIRONMENTAL
AND HUMAN RIGHTSRATIO OF TENDERS INCLUDINGSUSTAINABILITY “KS”

99% in 2021

83% in 2021 +13%

9,427
TOTAL QUALIFIED SUPPLIERS WITH A CONTRACTSTILL ACTIVE AT THE END OF 2022
6,717 in 2021 +40.3%

Purchases and tenders for goods and services Supplies, works andservices contracts (mil euros)
Supplies

Works

Services
9,788

7,820
6,744

6,509
5,480

2020

2021

2022

3,625

3,776

2020

2021

4,492

2022

4,965

2020

2021

Sustainable supply chain

2022

239

Top 10 Enel sourcing locations
no. of suppliers
335

5,980

5,980

3,668

3,665

1,277

Italy

Romania

Spain

1,018

Brazil

Chile

774

USA

594

570

Colombia

Greece

379

335

Peru

Argentina

The graph shows the countries where suppliers with active contracts are located.

In 2022, the total for works, services and supply amounts
to over 22 billion euros, of which more than a third is in
Italy, followed by Romania and Spain.
Together with our suppliers, we work to define new metrics and promote co-innovation projects in the perspective of a decarbonization and circular economy pathway,
with positive impacts on both power generation processes and purchasing methods (for example, the collaboration with the startup Alesea, see the chapter “Innovation”).
Specifically:• promote a circular procurement approach through the
adoption of many initiatives and mechanisms, including
the obligation for suppliers belonging to core categories(1) to provide and to issue an Environmental ProductDeclaration (EPD), aiming at quantifying, certifying andcommunicating the environmental impacts generated
along the entire life cycle suppliers‘ processes. Certified
data allow us to measure emissions along the entire supply chain, promoting in this way the Group's decarbonization pathway;(1)• as part of our tendering process, we set increasingly

challenging CO2 reduction targets on core supply categories,(1) which also take into account the contributionsof innovation. These targets are shared with our suppliers and are in line with a 1.5 °C path);• for strategic product groups, suppliers are required toprovide information on the amount of each raw material. This information allows us to reward suppliers basedon their capability to make use of recycled materials
as inputs in their production processes, thus stimulating a circular culture and reducing pressure on transition-critical materials;• we work together with suppliers to define criteria, technical requirements and solutions to further strengthen
circularity and sustainability in the early stages of thevalue chain. The purpose of this approach is to maximize the overall value of the product: on the one hand,by making use of recycled material along the supply
chain and, on the other, by reducing the “Global Warming Potential” and thus CO2 emissions.

Core categories are those that are strategic for the business including wind turbines, smart meters, photovoltaics, transformers, street lighting, smart homesolutions and storage systems.

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Appendix

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 standards. Therefore, partner selection andcontract execution are subject to analysis and monitoring
activities throughout the entire procurement process:Supplier qualification
systemTender and contracting
process

Monitoring
systems

Differentiatedpathways based on the
combination of risk level
identified and Countries
qualified for

Inclusion of requirementsand ”sustainability Ks“ to bemonitored throughout thecontract period

Evaluation of performancebased also on healthand safety, environmentand human rights indicators

Sustainability assessment
on health and safety,
environment and humanrightsSupplier qualification system
Each potential supplier, taking into account their business,
can undertake a qualification pathway for one or moreproduct groups (PG) and select the countries in which tosupply goods and services. Suppliers are only acknowledged as suitable if they meet all the specific requirements
for each PG selected.
All product groups are analyzed at a global level and withthe support of the different areas involved in the field, to
set the requirements in question. In particular, the analysis
involves:• mapping of the activities included in each PG;• choice of the qualification pathway depending on supplier type (there are ad hoc processes for start-ups, sector leaders and industrial groups);• allocation of a risk level for each key issue (health andsafety, environment, reputation, etc.);• categorization into PGs based on the risk detected.
With specific reference to sustainability aspects, thequestionnaires require information on:• health and safety, via the “Safety Self-Assessment” andits straightforward indication to our suppliers of the fundamental requirements on which to work and grow together;• environment: with a scale of 1 to 3 (1=worst; 3=best, re-spectively), environmental criteria are evaluated, which
are different depending on the relevant PG and its associated level of risk.

With regard to health, safety and environmental aspects,
for the highest risk PGs, an on-site audit at supplier’s
premises/sites is always required.
Before proceeding with qualification, two further assessments are carried out, regardless the related productgroup level of risk. Specifically:• a reputational assessment of the potential supplierthrough national and international data providers. In addition to compliance with the relevant laws and regulations, suppliers are required to adhere to the principles
to which we have committed ourselves with our Policyon Human Rights, Code of Ethics, Zero Tolerance ofCorruption Plan and global compliance programs, withspecific reference to the absence of conflict of interest (including potential) and, depending on the specific risk classes, the submission of specific certifications/self-declarations;• a human rights assessment, particularly with regard tolabor practices (such as rejection of forced or child labor,
respect for diversity and non-discrimination, freedom of

Sustainable supply chain241

association and collective bargaining, fair and favorable
working conditions, including hours worked and adequate wages, protection of workers’ privacy, and supply
chain verification) and relations with communities (local,
indigenous and tribal peoples) and society, through theadministration of a dedicated questionnaire.

Compliance with the requirements must be assured forthe entire duration of the qualification and, as such, thosealready included in the Enel Register of Qualified Suppliers
are constantly monitored, partly by reference to external
databases, for events that may affect their company andits main representatives.

If the outcome of these analyses and assessments is positive, individual suppliers can qualify and be added to the
Supplier Register (or remain on it if previously qualified)
and then be invited to participate in the Group’s procurement procedures. If the outcome is negative, the supplier
will not be able to participate in the Group’s tenders but
may submit a new request for qualification at a later date.

As of December 31, 2022, 99% of all qualified suppliers
were assessed according to social, environmental andsafety criteria. The total number of qualified supplierswith a contract still active at the end of 2022 was about
9,400 (about 46% of active suppliers as of December 31),
while the total number of active qualified companies was
about 31,400.
The following table shows the trend in the qualified suppliers’ percentage for the three aspects analyzed by process.

% of qualified suppliers according to social, environmental
and safety aspects at December 31
Human rights

Safety

99

99

99

93

2020

242

Environment
99

93

2021

2022

Sustainability Report 2022

2020

99

99

2021

2022

93

2021

2022

2020

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Tender and contracting processes
Consistent with our commitment to introduce sustainability aspects into the tendering processes, we adopted
a structured process governed by a specific procedure todefine “sustainability Ks”, which can be used in the tendering stage by the various purchasing and monitoring units
throughout the entire 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, and social aspects, such as training and employment of people from local communities and actions torespect gender diversity.
These are periodically updated within a cross-functional
working group dedicated to sustainability and circularity
issues, taking into account market maturity and new corporate strategies.
We include specific clauses in all contracts for works, services and supplies, which are updated periodically to takeaccount of the various regulatory changes and align ourselves with international best practices.
The general terms and conditions refer to the current regulations on remuneration, contributions, insurance andtax, with reference to all workers employed for any reason
in the execution of the contract by the supplier. In addition,
the principles set forth in the ILO Conventions and legal
obligations regarding 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 recalled.
In the event of conflict between the latter and the ILO Conventions, the more restrictive standards will prevail. The
clauses also require suppliers to undertake to prevent all
forms of corruption (Art. 29.1.3 and Art. 29.1.4 of the General Terms and Conditions).
In addition to the legal provisions, the contractual conditions require that our 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 humanrights, labor, the environment and the fight against corruption (Art. 28 of the General Terms and Conditions);• acknowledge the commitments we have made in theprinciples listed in the documents below and refer tothem in the execution of the contract: The Policy on Human Rights, which also includes a principle relating torespect for biodiversity; the Code of Ethics; Zero Tolerance of Corruption Plan; and the global models for theprevention of criminal risks (Art. 29.1.1 of the General

3

Materiality analysis

4

Our performance5

Appendix

Terms and Conditions);• adopt suitable conduct to avoid the emergence of con-flicts of interest throughout the entire term of the contract and undertake to notify us promptly in writing if any
such circumstances arise (Art. 29.2 of the General Terms
and Conditions).
We reserve 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 subcontractors, and to terminate the contract immediately if any
breach is ascertained.

Monitoring systems
The goal is to take any corrective actions if the suppliers on
the Register do not fulfill any requirement anymore during
the execution of the contract.
In particular, the following monitoring strands are provided
for all suppliers on the Register, regardless of whether they
have an active contract or not:• reputational monitoring: based on the monitoring of
open sources and carried out continuously (24/7). The
objective is to identify potential reputational risks arisingfrom a counterparty’s involvement in criminal proceedings, with a particular focus on environmental crimes
and human rights violations in business practice. This
monitoring also collects reports made through the whistleblowing channel, which is made available to all stakeholders and can be accessed locally in different languages;• document monitoring: this action aims to verify legal
documents (e.g. criminal records) and their validity. The
documents monitored take into account the legal specificities of each individual country in which we are present;• Contractor Safety Assessment: additional verification
carried out both during the qualification phase andduring the execution of the contract for PGs with amedium/high level of health, safety and environmental
risk. The objective is to identify HSE improvement areasthat are conducive to obtaining and retaining the qualification. A total of 1,120 assessments were conductedduring 2022.
For suppliers on the Register who have an active contract,
the following monitoring strands are provided in addition
to the systems already described:• health, safety and environmental monitoring of field

performance (during contract performance): the performance of our suppliers is assessed and monitored
through field inspections that identify existing non-conformities and potential hazards with respect to contractual commitments, technical standards and authoriza-

Sustainable supply chain

243

tion and legislative requirements. The primary objectiveof the inspections is to prevent accidents, injuries, illnesses and events that may affect the environment.
During field inspections, specific checklists are used tofacilitate the homogeneous aggregation of non-conformity data for subsequent corrective action. This data is
not only analyzed by the contract manager to take corrective action, but also feeds into the Supplier Performance Management (SPM) process to allow analysis andprevention and correction initiatives on a larger scale(see the section “Supplier Performance Management”);• Supplier Performance Management (SPM): monitoring
based on objective and systematic collection of dataand information related to the performance of the technical service under the contract (see the section “Supplier Performance Management”).
The evaluation of the data coming from the different monitoring strands is the responsibility of specific committees,composed of representatives from both the procurement
area and the Business Lines. Specifically:• the Qualification Commission, present in all majorcountries, is in charge of accepting/rejecting qualification requests, assessing possible suspensions and examining proposals for changes to the technical qualification requirements and to the PG tree put forward by
the Business Lines. In 2022, the total number of times
these committees met was 346;
• the Integrity Committee, composed of representatives
from Global Procurement, the Legal Function, the Security Function, and the Technical Functions of the Business Lines, meets whenever a critical issue emerges that
may have negative repercussions on the honorability ofthe supplier under consideration, to analyze it and to assess the application of specific actions or penalties withregard to supplier companies. During 2022, this committee met 39 times;• 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 HSE monitoring and for evaluating possible consequence management measures. In addition to representatives of the competent HSEQ Functions of the Business Lines, representatives of the Global Procurement,
the Legal Function, and the Technical Functions of theBusiness Lines are also on this committee. During 2022,
this committee met 40 times.

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Supplier Performance Management
Among the monitoring systems that are carried out duringcontract execution is the Supplier Performance Management (SPM). The goal, with a view to collaboration with our
suppliers, is not only to take any corrective actions during
the execution of the contract, but also to encourage apathway of improvement made possible by actions thatreward best practices.
The process is based on the objective and systematic disclosure of data and information on the execution of thecontracted work. This data is used to develop specific indicators, also called categories (Quality, Punctuality, Healthand Safety, Environment, Human Rights & Fairness, Innovation & Collaboration), which are combined to form aweighted average and produce the Supplier Performance
Index (SPI). The categories and SPI can be used as assessment elements for participation in tenders and for maintenance of the contractual relationship.
Monitoring activities related to the Supplier Performance
Management are conducted by the various Business Lines
with the support of the relevant health, safety and environment units, where applicable, and the Supplier Qualification and Performance Management unit. In addition, all
Enel people who interact with suppliers have the opportunity to express their own assessment using the dedicatedTrack & Rate app.
In the event of poor performance, we take specific actions
that can be reflected in:• qualification (e.g. updating the duration of qualification,
increasing or decreasing the overall economic potential,
meaning bands of tender amounts within which suppliers can enter, suspension of qualification, etc.);• the contract (for example, further investigations, improvement action plan, termination, reduction or increase in volumes, etc.). In the event that issues arefound with the conduct of a supplier, an action plan may
be drawn up jointly, the execution of which is subjected
to our constant monitoring.

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The SPM process monitored 701 PGs and 7,666 suppliers
last year (compared to 698 PGs and around 6,782 suppliers in 2021).

Suppliers
9,922

Tier 1 suppliers

60%
of Tier 1 suppliers are
deemed relevant (“critical suppliers”) in

relation to their strategic importance
related to the Company’s business uniquepurchase volumes, and other factors that
could have economic,
social and environmental impacts

5,950
Tier 1 suppliers assessed during2022 (includes assessments made during
qualification, tendering and contract
award phases)

27%
assessed Tier 1

suppliers that have been assigned
improvement actions

100%
of assessed suppliers

presented improvement action plans
and improved their ESG performance
as a consequence

Training and information
Over the past few years, we have organized several thematic events concerning decarbonization, adopting circular business models, respecting human rights and supply
chain mapping (collection of information aimed at creating
a global map of the supply network), with the aim of sharing
best practices and multistakeholder approaches in line with

the international reference standards for a sustainable conduct. Still on the subject of protection and awareness-raising, many initiatives were undertaken to involve suppliers inhealth and safety aspects.
In addition, articles are published periodically on the Enel
Global Procurement website that highlight the commitment made by the Group to these topics (https://globalprocurement.enel.com).

Sustainable supply chain

245

Creation of sustainable value: Supplier
Development Program
We have launched several initiatives to increase the resilience of the supply chain and to make Supplier Centricity
more and more concrete and tangible.
One example is the Supplier Development Program, initiallylaunched in Italy (where it is currently open to more than
6,000 suppliers) and being extended to other countries
of presence, 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, based or with branches in
Italy, that are qualified or at an advanced stage of qualification in our Supplier Register and have a production value
up to 250 million euros. We pay particular attention to small
and medium enterprises operating in strategic sectorsthat will benefit from our direct support to provide accessto certain services.
By entering into agreements with the main players, weguarantee more favorable conditions than the market average and we contribute with partial coverage of the services
offered as part of the program. These range from financial

At the end of 2021, the program "Energie per Crescere”(Energies to Grow) was launched, with the aim of training
about 8,200 new technicians, including 5,500 by 2023,
belonging to grids suppliers, creating highly requested
professional profiles in the sector (for example, cable
pullers, cable splicers, substation assemblers, live-line
workers); the remaining 2,700 technicians will be trained
and hired by 2025 and the training will be devoted to Enel
Green Power suppliers so as to integrate professional
profiles in the renewable sector (for example, electrical
specialist, junior site manager, civil-mechanical specialist).
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 thecandidates, once selected, attend the planned 200 hourcourses and, finally, Enel’s contracting companies thathire the participants throughout the country at the end of
the training course.

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instruments that can facilitate access to liquidity, to managerial and technical training programs that promote theconversion of the business towards the energy transition,from consulting services on sustainability, circular economy, strategy, M&A and internationalization, to access tocatalogs of means of transport and working machines,
all the way to services to obtain certifications. Particularattention is paid to initiatives to support the conversion
and diversification of businesses, such as the “Companies
Counter”, consisting of periodic meetings with individual
traditional generation companies to support them in theirprocesses of growth and redevelopment towards expansion in areas such as renewables or new services related toenergy efficiency.
The development that Enel intends to promote takes theform of:• increased awareness about sustainability and digitalization matters;• differentiation of the business and consequent reduction in supplier dependence on Enel;• increased financial strength;• internationalization, which helps grow our business outside of Italy and Europe.

During 2022, some 2,100 new technicians were trained
and recruited from grids suppliers.
A new phase of program development is planned for2023, with the involvement of the Enel X contractor
network aimed at strengthening profiles in energy
efficiency and photovoltaics.

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Appendix

ENERGIE PER LA SCUOLA: a bridge between
companies and training for the energy transition

Giuseppe Macrì
Quality and Sustainability
Referent – Supplier Development
and Operational Excellence
Procurement Italy. Head of Energy
for Schools, EnelAt the beginning of 2022, the Energie per la Scuola program was launched programme for final
year students attending technical and vocational
schools, with the aim of training them for the 'most wanted’ roles in the electricity sector so that, after graduation,
they can be hired by Enel’s suppliers. 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 access into theworkplace with the Group’s suppliers immediately after
graduation, also through greater knowledge of the industrial realities in the industry.
The initiative entails the signing of agreements between
companies and schools, based on the PCTO (Percorsi perle Competenze Trasversali e l’Orientamento - Pathways forTransversal Skills and Orientation) model defined in the
Guidelines drawn up by the Ministry of Education, University and Research.

With Energie per la Scuola we involve students,
schools, training organizations and our suppliercompanies on a path of growth, through a qualified
and certified pathway gives many young people theopportunity to make the big leap into the workplace
and that will contribute, in a broader way, toaccelerating the energy transition.

The training includes a basic course lasting 120 hours anda further specialized course lasting 40 hours and geared
towards the profiles ‘most wanted’ in the e-distribuzione
sector. Training is provided by certified training institutions
in partnership with schools.
The first edition of the program (school year 2020/2021)
involved 11 schools, 8 suppliers of e-distribution and a total of some 100 students who were all hired by Enel’s suppliers at the end of the training. The second edition, aimed
at 2022/2023 school year students, is currently underway
and it involves over 60 schools and some 500 students.
Theory and practice will go hand in hand with an innovative and engaging teaching approach that will allow thestudents to consolidate the knowledge acquired in theclassroom with experience in the field, through a series ofhighly specialized courses, a real springboard towards new
professional opportunities.

Sustainable supply chain247

Fuel procurement
2-6

3-3

301-1

requirements for occupational safety, environment andhuman rights have been satisfied.

Suppliers of solid and liquid fuel are selected through the“Know Your Customer” process that, for each counterpart,
evaluates the reputational and economic-financial aspects
and their satisfaction of the appropriate technical andcommercial requirements. Checks also ensure that suppliers are not on specific United Nations, European Union and
OFAC “Black Lists”.
These lists identify individuals or organizations associatedwith terrorist 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.

Purchase contracts entered into with each supplier are
subject to the Group principles embedded in the Human
Rights Policy, the Code of Ethics and the Zero Toleranceof Corruption Plan, with which suppliers must be aligned
with. We reserve the right to terminate contracts in case of
severe breach of those principles.
Lastly, to mitigate the risks arising from the maritime shipmentof fuel, we have adopted a tool to vet and select the carriers
used. Vetting is a recognized industry standard for oil transportation. Enel, together with an increasing number of operators, is also applying this methodology for dry bulk transports.

To assess the sustainability aspects of coal sources, an internal process has been established to ensure that Group
UM

2022

2021

2020 2022-2021% Perimeter

Resources used in the production process
Fuel consumption for thermoelectric production
from non-renewable sourcesfrom non-renewable sources
Coal(,000 t)

8,522

5,958

5,893

2,564

43.0

Enel

Lignite(,000 t)

-

-

105

-

-

Enel

Fuel oil(,000 t)

889

863

975

26

3.0

Enel

Natural gas(Mm3)

13,214

15,682

13,075-2,468

-15.7

Enel

Gas oil(,000 t)

1,262

1,033

906

229

22.2

Enel

Biomass and waste for thermoelectric production(,000 t)

65

71

89

-6

-8.5

Enel

from renewable resources
Biogas

3

(Mm )

1.2

0.7

0.1

0.5

71.4

Enel

Geothermal steam used for electricity production(,000 t)49,947350,160

350,090-300,213

-85.7

Enel

248

Sustainability Report 2022

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Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Bettercoal
3-3

Together with major European electric utilities, we are actively engaged in Bettercoal – a global initiative to promote
the continuous improvement of corporate responsibility
in the international coal industry. Bettercoal has released acode of conduct based on existing and agreed standardsof social responsibility in the mining sector. The Codeprovides detailed guidelines to mining companies in thedefinition of their social, environment and ethical policies.
The Bettercoal Code establishes members' expectations
regarding suppliers' practices related to four main categories: management systems; commitment to ethics andtransparency; human and labor rights; and environmental
performance, while promoting ongoing improvement. In
2021, a new version of the Code was finalized to align itwith the latest best practices in sustainability, thereby contributing to achievement of the applicable Sustainable Development Goals. In addition, the new version of the Bettercoal Code ensures the integration of the mine closureand rehabilitation processes, embedding environmental,social, economic and governance aspects into operations
from the earliest stages of mine development.
Mining companies adhering, signing a letter of commitment, start a virtuous path by 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 to overcome any shortfalls. In addition to Bettercoal’s growing presence in several forumsin the area of coal and supply chain sustainability, the initiative has become an example of collaboration together
with different stakeholders, aimed at improving socially responsible practices within the supply chain. During 2022,
as members of Bettercoal within the working group dedicated to Colombia, we participated in the delegation thattravelled to Colombia, for the first time since 2018, withthe aim of further improving our understanding of the critical issues surrounding coal mining in the country, allowing
us to foster better stakeholder relations with all involvedin this complex environment, including companies, thegovernment, international NGOs and local communities.
During the visit, several meetings were organized with over
60 stakeholders, including business associations, communities and local governments.
In addition, a new working group specifically dedicated toSouth Africa was established in 2022 due to changing international scenarios. For further information, please referto the website www.bettercoal.org.

Sustainable supply chain

249

Engaging communities

Material topics (I level)

Plan

SDG

• Engaging the local andglobal communities

Doublemateriality

People• Local and global
communities

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG
4
17
7

Support for local communities

17
8
17
17

1

2

3

5

10 17

9

Activities

2022 results

Progress2023-2025 targets

Tag

Inclusive and equitable quality
education

3.7 mil beneficiaries (2015-2022)

Affordable, reliable, sustainable andmodern energy

15.6 mil beneficiaries(2015-2022)

20.0 mil beneficiaries in 2030(1)Sustained, inclusive and sustainableeconomic growth

4.9 mil beneficiaries (2015-2022)

8.0 mil beneficiaries in 2030(1)Strengthening and promoting
operational partnerships

1,215 partnerships launched

Development of new projects tobenefit the communities where Enel
operates for the creation of sharedvalue (CSV)

2,325 projects

Dissemination of the CSV model inoperating assets

1,527 total CSV
applications(2)5.0 mil beneficiaries in 2030(1)

S
G
S
G
S
G

Strengthening and promoting
operational partnerships

S
GS

The target is considered
outdated in order to adopt an
approach related to impact
assessment, on which we arefocusing

GSI

The target is considered
outdated in order to adopt an
approach related to impact
assessment, on which we arefocusing(1) Cumulative figures since 2015.
(2) For more details on CSV applications, please refer to the note in the chapter “Engaging communities”.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2
2502022 Sustainability
Sustainability
ReportReport2022

Achieved

1

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3

Materiality analysis

4

Our performance

Engaging communities﻿

5

Appendix251

Engagingcommunities
2-24

2-29

3-3

411-1 413-1

Establishing solid and lasting community relations in thelocal areas where we operate is a fundamental pillar of
our strategy, based on a model of business development
and management in continuous interaction with thecommunities themselves in order to create long-termand constant shared value, in full respect of human rights
and without leaving anyone behind.
As part of the transition process towards a decarbonizedeconomy as a driver of growth and modernization forcommunities, we promote economic development,
welfare, quality of life and equality.

252

Sustainability Report 2022

This approach has led us to innovate the way we run ourbusiness (introducing, for example, sustainable site andfacility management models; see section “Renewableenergies“ in the chapter “Clean electrification“) as well as
the processes of developing energy products and services
in an inclusive direction. An approach that also counts on
the activation of virtuous ecosystems, such as the Open
Innovability® platform, based on openness and sharing,as an indispensable element to facilitate and promote theidentification of innovative social ideas and solutions (forfurther information see the chapter “Innovation”).

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Appendix

2,325
SUSTAINABILITY
PROJECTS
2,410 projects
in 2021
-3.5%

Over

6.3 milBENEFICIARIESOver 7.5 mil
beneficiaries
in 2021-16%

1,527
APPLICATIONS
OF THE
CSV MODEL(1)1,478 applicationsin 2021
+3.3%

1,215
PARTNERSHIP
581 in 2021
+109.1%

Managing community relations and otherstakeholders is an enabling factor for all
sustainability activities, which rely on specificoperational levers:• Sustainability by design: in order tointegrate a long-term sustainability
approach into the business, it is necessary,as far as possible, to anticipate and address
all sustainability issues at the design stageof Company activities;• Ad hoc interventions: activities that occur
after the start of the business project, in
response to events or needs that arise
during the construction of the assets,
the performance of daily activities, theoperation of plants or the interaction withstakeholders;• Crisis management: sustainability
interventions may need to be implemented
in relation to sudden and unforeseen
occurrences and serious damage suchas critical events relating to Group assets,
projects or products and resulting fromnatural disasters or social/community
unrest. These situations will be handledwith dedicated and targeted initiatives.
In 2022 our contribution to the social andeconomic development and growth of theterritories resulted in more than 2,300
sustainability projects in the various countries
where we are present, involving more than
6.3 million beneficiaries,(2) in line with thesustainable development goals (SDGs).

These projects range from infrastructuredevelopment to education and vocational
training programs, projects to support
cultural and economic activities, promotionof access to energy, rural and suburban
electrification, and promotion of social
inclusion for the most vulnerable groupsof the population (physically, socially andeconomically).
Among the initiatives to support socioeconomic development are:• the promotion of inclusive businessmodels, such as the development of
e-commerce platforms to foster accessto credit and the development of the local
economy, to support the less privileged
segments of the population;• combating energy poverty throughenergy awareness initiatives;• digitalization to support connectivity inrural areas and computer literacy;• projects aimed at fostering theparticipation of women in STEM subjects,
for the development of local economies.
In realizing our commitment tocommunities, we are not alone: we havemore than 1,200 active partnerships
internationally with non-profit organizations,social enterprises, start-ups and institutions
rooted in the local areas with valuable local
expertise, because we believe in the value ofa multi-stakeholder approach.

(1)

An application is interpreted as the use of at least one CSV instrument in relation to an asset, in any phase of the chain ofvalue and in any Business Line. The CSV applications in the BD phase include applications regarding BD opportunities (alsoat the beginning phases) and business projects output from the pipeline. They can also relate to assets in O&M in the caseof modernizing projects or decommissioning activities. The CSV applications in the E&C phase can refer to assets passed
to the O&M phase at the end of the year. The number of CSV applications in Infrastructure & Networks (I&N) may refer tothe concession area, but also areas identified by municipalities and substations. The value includes companies consolidated
using the equity method and companies for which the Build, Sell and Operate (BSO) mechanism has been applied.
(2) Beneficiaries are the people in whose favor the project was carried out. 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. Solely within the NFS perimeter (excluding companies consolidated using the equity method, foundations, Group
non-profit organizations and companies to which the Build, Sell and Operate, or BSO mechanism has been applied), thenumber of beneficiaries in 2022 is 0.6 million for SDG 4, 2.3 million for SDG 7 and 1.2 million for SDG 8.

Engaging communities

253

Our model for creating shared value
with communities:Establishing strong and lasting community relations,
including local communities and indigenous and tribal
peoples, requires a broad, inclusive and continuous
dialogue based on well-defined stages of stakeholder
engagement, in line with relevant international standards(such as the UN Guiding Principles on Business andHuman Rights and the OECD Guidelines for Multinational
Enterprises), aiming therefore to:
1. incorporate responsible Company conduct into policies
and management systems;
2. prevent or mitigate impacts;
3. monitor the implementation of improvement plans andresults;
4. communicate how impacts are managed.
Indeed, when conducted as early as possible in the planning phase, stakeholder engagement enables us to identify the requirements of the populations within our sphereof influence and generate the most comprehensive possible mapping of the potential consequences our activity
may have on them. The process aims to:• identify stakeholders within the sphere of influence ofour business;• verify that the stakeholders identified ensure representation of all groups affected by the development of ouractivities in our sphere of influence;• analyze the type of relationship that can be created between us and the mapped stakeholders in order to avoid
potential conflicts of interest;• provide common guidelines for those responsible formanaging stakeholder consultation processes to achieve
and implement a robust engagement procedure, seeking to prevent any potential situation that might undermine stakeholder expectations;• develop an understanding of our sphere of influence byconducting context analyses containing a wide range ofsocio-economic and environmental data;• guarantee that consultation satisfies specific conditions of quality, such as being free, preventive, inclusive,
adapted to the local context, bidirectional and well documented, in line with international reference standards;• share all the information about the project that is relevant for the concerned stakeholders in order to promotetransparent and collaborative relationships.

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• involve independent third parties in negotiation pro-

cesses because of their expertise in the area and as a“bona fide witness”, if applicable;• facilitate and support engaging local communities inproject monitoring through local training, sharing transparent information on project phases and the methodology for defining target areas;• provide an access channel, characterized according to
the context, for any reports from people who need tocontact us, based on tools and means available at thesite, such as local teams or specific people, toll-freenumbers, the internet, or, in the case of isolated ruralcommunities, even local leaders willing to collect all possible complaints periodically.
The functioning of the model is governed by organizational documents that define roles and responsibilities inthe various stages of its implementation. Examples are the
Policy “CSV Process definition and management” and the
Operational Instruction “Project Portfolio Management
System”, including the management of the digitalized platform dedicated to project reporting.
The definition and dissemination of guidelines for implementing the sustainability model, the assessment of thesustainability projects, the management of the projects
on a Group level and the dissemination of best practices in the countries we operate in are guaranteed by theHolding’s Innovability® organizational structure and by the
relative sustainability structures in the various countriesof operation and Business Lines. Each country and eachBusiness Line adapts the procedures for the global policy
and the procedures for application of the model on a local
level, based on the specific aspects of business and thecontext.
In response to the growing challenges posed by the newsocial and economic context and the increasingly central
role assumed by sustainability in every phase of business,
we are reviewing our models to ensure their scalability andincrease their impact. We are also accelerating the adoption of an approach focused on assessing the impacts ofour sustainability projects by setting increasingly specifictargets.

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Appendix

The value created for the communities
The contribution to sustainable
development goals• ensuring access to affordable, reliable, sustainable and

The sustainability of our strategy is also confirmed by the
progress achieved in terms of the Group’s contribution toachieving the United Nations sustainable development goals(SDG), with particular reference to projects targeted at:• ensure inclusive and equitable quality education (SDG 4),
which has benefited 3.7 million people;(3)Activities

Target2015-2030

2015-2022

Qualityeducation

5 million

3.7 milbeneficiaries(1)Results

20 million

beneficiaries(1)

2016

2017

2018

2019

2020

2021

2022

0.1

0.2

0.3

0.4

0.3

1.0

0.7

0.7

8 million

beneficiaries(1)

mil

mil

mil

mil

mil

IN LINE

mil

2015

2016

2017

2018

2019

2020

2021

2022

1.5

1.3

1.3

2.2

1.6

1.9

3.5

2.3

2015

2016

2017

2018

2019

2020

2021

2022

0.4

0.7

0.4

0.3

0.3

0.9

0.7

1.2

mil

mil

mil

mil

mil

mil

IN LINEmil

4.9 mil

mil

(1)

mil

SDG

15.6 milmil

Decentwork andeconomic
growthStatus2015

mil

Affordable
and cleanenergymodern energy (SDG 7) which has affected 15.6 million
people to date;(4)• promoting sustained, lasting, inclusive and sustainableeconomic growth (SDG 8) with 4.9 million beneficiaries.(5)

mil

mil

mil

mil

mil

mil

IN LINEmil

Beneficiaries are the people in whose favor the project was carried out. Enel considers only the direct beneficiaries for the current year. The number ofbeneficiaries considers the activities and projects carried out in all the areas in which the Group operates.

(3) Cumulative data from 2015-2022 on the total number of beneficiaries of SDG 4 to date.
(4) Cumulative data from 2015-2022 on the total number of beneficiaries of SDG 7 to date.
(5) Cumulative data from 2015-2022 on the total number of beneficiaries of SDG 8 to date.

Engaging communities

255

Measure the value of our commitment
for communities
3-3

203-1

We make a substantive contribution to the development
and social and economic growth of the territories andcommunities where we operate with varying types of intervention, ranging from the expansion of infrastructure toeducation and training programs, from initiatives targetingsocial inclusion initiatives to projects supporting local cultural life.
To measure our action, we adopted the LBG (London
Benchmarking Group) method, which makes it possible toclearly determine and classify the Company’s contribution
toward the development of the communities where it ispresent and compare it with other companies.
In particular, according to the LBG standard, the expense
for the contributions to the communities can be divided
as follows:• donations: pro bono contributions and without obligations for the beneficiaries, except that they have to use
the donation for charitable purposes and for non-profit
associations. For Enel, this item includes all the monetary and “in kind” charitable donations, including thosefor philanthropic and solidarity activities;• investments in the community: medium/long-term in-volvement in community support projects, also in partnership with local organizations, aimed at addressing
significant problems both for the territory as well as
for the Company. This category includes, for example,
projects related to a wider strategy to the benefit of thecommunity, such as “Access to electricity”, or specificinitiatives dedicated to the communities near the power
plants (please refer to the chapters “Clean electrification” and “Managing human rights”);• commercial initiatives with a social impact: contributes
to 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 the community,or that include contributions for charitable purposes.
In 2022, Enel’s total contribution to the communities inwhich it operates was about 120 million euro(6) (+31.6%
compared to 2021), registering in particular an increase ininvestments in communities compared to last year.

2022 initiatives in favor of communities by purpose (%)
Donations

12.1%

Community investments

64.4%

Commercial initiatives with a social impact

23.5%

2022 initiatives in favor of communities by type (%)
Cash contribution

86.2%

Employee volunteerism

0.6%

Donations in kind (goods/services/projects)

6.2%Management overheads

7.0%(6) The largest increase over last year was in community investments (up by more than €21 million), particularly in Brazil, Chile and Colombia. Expenditure on
donations increased slightly compared to 2021 (increase of about €5 million), particularly in Brazil and Chile, as did commercial initiatives (increase of €3
million), particularly in Italy and Iberia due to the prolonged effect of the post-pandemic reco very.

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Sustainability projects
and initiatives
In the communities in which we operate, we implement
projects that, in line with the Sustainable Development
Goals, contribute to the development and social and economic growth of local communities by promoting infrastructure development, education and vocational training,

cultural and economic activities, energy access, rural andsuburban electrification, the fight against energy poverty,
and social inclusion for the most vulnerable populationgroups. .

ACCESS TO ELECTRICITY

Energy to grow – PERUT

he main objective of the project, activated in 2021, isto accelerate the electrification of new human settlements located in the most disadvantaged areas within
our concession area in Peru.

We have managed to reach 20,000 electrified lots by 2022,
which will improve the quality of life for 80,000 people.

It is a collaborative project in which we try to work together
with municipalities, the population and non-governmentalorganizations (NGOs). With this project we help families
in the communities to improve their living conditions, interms of health and education, and we also give them theopportunity to open new businesses, thus contributing totheir economic development.

Energy security in critical areas – CHILET

he project, born in 2018 from an agreement signed
between Enel Distribución Chile and Fundación Techo
Chile, aims to promote sustainable and secure access toenergy for families in the municipality of Lampa, in fields
located in the concession area.
During 2022, 1,900 new suburban connections were built
in the municipalities of Lampa, Pudahuel, Colina and Maipú.
In alliance with Fundación Techo and Litro de Luz, solar lights
and a WiFi point were installed in the “El Esfuerzo 2” field in
the municipality of Cerrillos, as well as offering workshops andtraining on unconventional renewable energies, entrepreneurship workshops and digital literacy, thus creating a space topromote social development in the camp.
Finally, Enel Grids organized educational events related toenergy efficiency, electrical risk prevention and climate change, as well as initiatives to improve local employability, such as
the development of sustainable lighting in collaboration with
the Litro de Luz Foundation.

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Leadership network in Florencio Varela – ARGENTINA

D

uring 2022, we set up a community leadership network in the San Jorge – Villa Argentina neighborhoodin the municipality of Florencio Varela in Buenos Aires, inorder to strengthen the relationship with neighborhood
leaders and formal and informal organizations representing community interests. In this area, the public’s concerns
regarding the public electricity service and other issues
impacting the community environment are addressed..
Through this network we accompany the energy service
normalization process for 675 new customers, raisingawareness, advising and resolving specific claims. During
the process, together with neighborhood leaders, we
identified specific needs such as:• computer equipment: 15 PCs were donated to theCentre for Labor Training (CFL);• workshops on sustainable energy use: 2 face-to-faceworkshops of a theoretical-practical nature were
held to raise awareness of responsible and efficientconsumption;• installation of photovoltaic lights with LED technology
self-made by residents of the neighborhood;• energy transition workshop for students, withtheoretical and practical content on technologies
associated with the energy transition.

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SOCIAL AND ECONOMIC GROWTH

Hortas em Rede (Orti in rete – BRASILE)The Hortas em Rede project, developed by Enel São
Paulo, uses the tracks underneath the distributor’stransmission lines to create vegetable gardens in peripheral areas with a high population concentration in the capital’s metropolitan region, demonstrating how a sustainable infrastructure can be integrated into the territory by
responding to the needs of communities.
The project comprises three vegetable gardens in the São
Mateus neighborhood and offers the communities in thesurrounding area opportunities for employment, vocational training and income generation through the sale ofproduce grown by the farmers. The most significant innovation of the project is the shift from a value destruction
scenario to a shared value creation scenario. Another innovative aspect relates to social inclusion: women and theelderly are in fact the main beneficiaries of the production
and marketing of the garden products.
The project also contributes to the enhancement of thelandscape and to creating the conditions for the residentsof these areas to become actors and protagonists of a realsocial transformation. Between 2021 and 2022, 80 farmers and 1,332 people indirectly benefited from Hortas em
Rede, generating over about 150,000 euros(1) in income.

(1)

Value determined using the exchange rate as at December 31.

Ruta Pehuenche: a program for the developmentof small local business people – CHILEI

n Chile, where the Los Cóndores hydroelectric plant in
the Maule region is under construction, encounters withthe local community have generated training and employment opportunities, with the emergence of a women-led
micro-entrepreneurial fabric.
The local development program Ruta Pehuenche was created here, and its name was taken from the international
corridor that extends to Argentina and is full of exceptional
natural attractions.
The project was created with the dual goals of promoting
the economic growth of the entire community throughtraining courses and improving living conditions throughthe use of environmentally friendly technologies for watersupply, food, housing, energy and the resolution of sanitation issues.
To date, four years after the project’s inception, more than
80 people (including 70 women) have participated in vocational workshops held in the Chilean localities of La Mina,
Paso Nevado, Armerillo and Las Garzas, for a total of 130
hours of training. This initiative has led to the creation ofsmall commercial businesses − linked to the tourism flowin the area − that produce items made of wood and jewelry made with stones and ceramic. In addition to improving the ability of families to generate income, the project
represents a channel for promoting and strengthening therole of women in the local social fabricEngaging communities

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Energy Collection (Costurando Sonhos) – BRAZIL

T

he aim of the project, established in 2017, is to provide
financial autonomy to women in Paraisópolis, São Paulo’s second largest community.
The initiative started as a training course, a way to help
women in situations of extreme social vulnerability, often victims of domestic violence. Through the program,
women who previously had no income are now finding
their economic independence, thanks to the skills acquired through training courses in cutting and sewing,
which have taught them a trade from which they can earn
their own income..

The project extends not only to São Paulo, where it originated, but also to the state of Ceará and Rio de Janeiro, andhas enabled a number of women to receive training fromthe Enel Shares Entrepreneurship program during its five
years of operation. The income generated from the saleof the garments is entirely donated to the women in the
production groups to which they belong.
In 2021 and 2022, a total of 342 people benefited from the
project, generating an income of almost 16,000 euros.(1)
(1)

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EDUCATION

Educating with Energy Enel CEO – CHILET

he project, which started in 2022, is based on a training course comprising, on the one hand, theoreticalmodules at a professional technical institute and at a training platform on electrical risk prevention, and on the other
hand, a practical phase at the training sites of the Operational Excellence Centre (CEO). This phase is carried out by
the Enel Grids contractors’ operational teams, which ensures that the field work carried out by the students meetsthe highest quality and safety standards, and is conductedby technical area representatives in cooperation with thecontractors, who carry out daily maintenance functions
on the networks in the concession area in the metropolitan region. The project was realized through an alliance andpublic-private partnership between the vocational technical institutes, Chile DUAL, SOFOFA (which contributed asa sponsor) and 10 contracting companies, which in a coordinated manner provided venues for vocational intern-ships for students from the Lampa and Recoleta districts.
The objective of this training is to qualify people as muchas possible to strengthen the electricity sector, considering
customer safety as a priority focus in a participative and inclusive strategy.

Lethbridge College Wind Engineering Partnership – USA

I

n Alberta, where we operate four wind farms, we havebeen pursuing since 2020 a multi-year partnership with
Lethbridge College to support the Wind Turbine Technician Training (WTT) program and empower the studentsof the Piikani Nation.
The partnership creates opportunities for STEM education
and workforce development for indigenous and other students living in the areas around several of the Group’s windplants in the southern part of the province.
The project includes “experiential learning days” for Piikani
Nation students and the opportunity to visit Lethbridge
College and get more information about both the WTTprogram and other university programs and services. We
are also funding awards under the WTT program to support Piikani Nation students, indigenous and non-indigenous, who graduate.

The involvement of these young people will include: safety training in the college’s wind turbine shop; a climbing
experience in a wind turbine nacelle; a visit to the top of awind turbine using virtual reality (VR) technology; the construction of miniature wind turbines, tested in the college’s
wind tunnel; and the development of a virtual reality tourof the college’s nacelle, through the donation of two VR
visors.

.

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“È viva la scuola lab“, Helpcode – ITALYT

he project, now in its second year in 2022-2023 andrealized in partnership with Helpcode, aims to support
schools in their educational activities, through an integrative training proposal and the enhancement of curricularteaching, also with the objective of increasing students’awareness of the Group’s main commitments, such as energy transition, digitalization and human rights.

New in this edition is the “Energies for the Future” workshop path, which was realized using products powered byrenewable sources and recycled materials, and providing
specific training reserved for a local association to ensure
the continuation of the project independently thanks tothe skills acquired.
In 2022, the project involved about 150 children.

The project is structured by developing three modular macro-activities: 120 workshops for classes, specific training forteachers and 10 “Energy for the Future” activities. Workshop
activities were, where possible, conducted in the presenceof Helpcode educators with the contribution of our volunteers. The paths aim to guarantee the children’s right toglobal citizenship education and sustainable development
through exploration, interaction and play, including the useof digital platforms and educational software.
The workshops that remain active for this new release are:
• CODE AND CHANGE YOUR WORLD!, dedicated tocoding and digital literacy;• THE ALGORITHM OF RIGHTS, dedicated to rights andactive participation.

SOCIAL AND ECONOMIC GROWTH

Bet on water in La Guajira – COLOMBIAI

n 2022, Enel Colombia built the Amalipa micro aqueduct, which provides 600,000 liters of drinking water
per month to more than 2,450 Wayuu indigenous people
from 22 communities in Maicao and Uribia.
This work is in addition to the Wimpeshi micro-water
pipeline, inaugurated in February 2021, which consistsof two reservoirs and 13 tanks that provide 2,000 litersof water per week to rural communities scattered acrossmiddle and upper Guajira. The project currently benefits
almost 3,000 indigenous Wayuu people.
As of 2022, we have been awarded the role of partner forthe construction of a new micro water pipeline in the Jaipaichon and Urraichipa territories in the municipality ofMaicao, which will provide drinking water to more than
4,000 people in 39 Wayuu communities.
In addition, we commissioned the drinking water treatment system in the community of Media Luna Jawuaou in
Uribia, benefiting 2,318 people.

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Finally, four tanks were built and handed over to the municipality of Maicao; these were developed together with
the ACDI/VOCA Foundation for Latin America, the Ministry of Housing and the Colombian National Army. Almost
560 people from the communities of Chuluita, San Luis,
Sabana Larga and Corralito benefited. These four jagüeyes
are in addition to the 10 we have delivered since 2020.

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Sustainability Wonders –Enhancement and awarenessfor sustainable energy
Sustainability Wonders is the platform of the Global
Business Line Enel Green Power and Thermal Generation
that, since 2021, collects, enhances and shares the bestsustainability challenges.
During 2022, the program saw the launch of threecontests dedicated to three different issues, in which all
Enel people, in all countries, participated by submitting
their sustainability project on each theme.
The first of the three contests was dedicated to SDG 8
and supporting local entrepreneurship through initiatives
that generate a positive and sustainable economic impact
on the communities in which we operate. The winning
project, which is Italian, provides vocational training
courses on energy transition for the staff of companies
in the Civitavecchia area, where the Torrevaldaliga Nord
power plant is located.

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The second contest, focused on SDG 15 and dedicatedto the conservation of biodiversity, featured Brazil’s
initiatives on food and water security, agricultural
production, sustainable fishing and mining that contributeto the fight against global warming. The project has
restored more than 610 hectares with the planting of local
flora. A total of more than 1,200 animal species – 26 ofwhich are threatened and 80 endemic – were recorded in
the areas covered by the various projects.
Finally, the last contest launched in 2022 focused on SDG
3, and gathered initiatives aimed at the psychophysicalwell-being of the individual. In this latter contest, thewinning project, which originated in Italy but has become
global, is “Enel CReW, Cycling Running & Walking”, which
encourages virtuous mobility behavior and is currently
active in 18 countries, with 145 clubs and almost 3,000
participating colleagues who have so far covered a totalof more than 2 million kilometers, avoiding the emissionof more than 350 million tons of CO2 into the atmosphere.

Margherita Moscatelli
Head of Engagement and Performance
EGP&TGx Sustainability“The Sustainability Wonders program was born fromthe desire to select the best sustainability projects
implemented in the vicinity of our generation plants,
in order to highlight and champion them, through aninnovative and participatory process that involves andengages colleagues from all Countries”

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Innovation

Material topics (I level)

Plan

SDG

• Innovation, circular
economy and digitaltransformation

Doublemateriality

Growth accelerators• Innovation

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

Innovation and sustainability ecosystem

917

Activities

2022 results• Further enhance the reach of our

194 Proof of Concept launched•innovation ecosystem, to find thebest solutions on a global scale
Generate value by solving theever-increasing needs of theBusiness Lines, by enabling open
innovation tools (collaboration
with startups, crowdsourcing,
partners, universities, intelligence,technological communities,
solution design activities)

Progress2023-2025 targets

Tag

Launch of 445 Proof of Concept
to test innovative solutions in the
period 2023-2025

S

I
G
T

60 solutions adopted in thebusiness

Scale-up of 126 solutions toaccelerate the implementationof the Strategic Plan in the
period 2023-2025

I
S
G
T

Read more
Proof of Concept are small-scale
tests of a potential innovative
solution, useful for assessing its
feasibility and large-scale implementation.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2
2642022 Sustainability
Sustainability
ReportReport2022

Achieved

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Innovation

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60
SCALE-UP OF
SOLUTIONSADOPTED IN THE
BUSINESS
46 solutionsin 2021+30.4%

194
PROOF OFCONCEPT
168 in 2021
+15.5%10
INNOVATION
HUBS
10 in 2021

43
COLLABORATIONSFOR INNOVATION
41 collaborationsin 2021+4.9%

119
COLLABORATIONSACTIVATED WITH
STARTUPS
100 collaborationsin 2021+19.0%

Innovation
DMA EU (former EU8)
In a world in which companies continue
to change workflows and are becoming
increasingly digital, we are concentratingon new technologies and are continuing
to work toward giving life to sustainable
progress.
In order to encourage new uses of power
and new ways of managing it and making
it accessible to increasing numbers ofpeople in a sustainable way, we have madeinnovation a key component of our strategy.
It is a pathway that involves traditional
businesses and the development of newmodels and technologies, which leverageon cutting-edge innovation, passion andideas that emerge not only from within, butalso from outside the Company.
Enel’s Open Power model considers
innovation as one of the four values thatinspire our day-to-day actions, together
with trust, responsibility and proactiveness.

We support innovation to be certain that thebest and most creative ideas help improve
the lives of people. By just rethinking theway in which we innovate we can truly
revolutionize the industry and develop
technologies and solutions that can shakeup old markets and create other completely
new ones.
Since 2021, the culture of innovation was
combined with an “agile” approach, withthe objective of providing the businesswith 360° support, from the initial idea of a
project to its adoption phase, through theuse of creativity, lateral thinking and agile
techniques.
Innovation and agile transformation havein fact a great potential for synergy as they
are essential factors behind the creationof a competitive advantage and for the
optimization of costs over time.

Enel’s Open Innovability® for changing
the future of energy
The new model (Open Innovation +sustainability) is based on the crowdsourcing
activities of the best talents, ideas
and technologies to make them grow,transforming them into new businessmodels. In this way, we are connecting all
Company areas with startups, industrial
partners, small and medium-sized enterprises(SME), research centers, universities andentrepreneurs, through the openinnovability.
com platform, to face new challenges,
in consideration of the drivers of theGroup’s Strategic Plan and the sustainable
development goals (SDG) of the United

Nations 2030 Agenda.
Since 2017 we have launched theopeninnovability.com platform, with morethan 13,000 evaluated opportunities, morethan 210 challenges, 34 of which only in 2022.
Over the past year, the challenges for which
the most solutions were proposed concern:
innovative ways for improving the albedo
in solar generation plants, sustainableapproaches for reusing cement, a new designfor primary and secondary substations.
Those who propose solutions for solving thechallenges can win monetary awards and startcollaborations with the Group.
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We can count on a global network of Innovation Hubs andLabs (10 Hubs, three of which are also Labs, and three Labs
dedicated to startups) that collaborated with the local ecosystems to expand our vision, promoting open innovationand sustainability.
The Hubs, which are located in the most relevant innovation
ecosystems for the Group (Catania, Pisa, Milan, Silicon Valley, Boston, San Paolo, Madrid, Barcelona, Santiago de Chileand Tel Aviv), handle a network of relations with all players
involved in innovation activities and are the main source of
scouting for startups and SMEs, with the objective of responding to the innovation needs of the Business Lines. The
scouting activity also focuses on promoting the adoptionof solutions that can maximize our sustainable profile, suchas promoting circularity, guaranteeing inclusiveness and attempting to face social problems.
The Labs make it possible for startups to work alongside
the technicians and experts of our Business Lines in orderto develop and test solutions in the most fertile environment possible. In addition to the laboratories in Milan, Pisa,
Catania, San Paolo and Be’er Sheva, in September 2022 we
inaugurated the new AI & Robotics Lab in Tel Aviv, which is
specialized in developing artificial intelligence (AI) and robotics for renewable energies and energy networks. Thisis the fourth innovative initiative launched by the Group in
Israel and is managed by Enel Green Power and Enel Grids(the Group Business Lines dedicated to the generation anddistribution of clean energy).
Open Innovation also means creating partnerships with key
players. We are currently committed to 43 collaborations forinnovation that cover the areas that are the most strategic
for the Group and that concentrate on relevant topics, suchas the new sustainable materials for Enel assets (Novamont),

innovative technologies for improving the generation andstorage of renewables (BASF), the promotion of space applications in the energy sector (ESA and Thales Alenia Space)
and the codevelopment of innovative digital solutions (Ciscoand Microsoft).
We have created specific interfunctional work groups (Innovation Communities) in order to face topics relevant forthe business and new technologies and create value in an
innovative manner. The active communities concern thefollowing topics: blockchains, drones, energy storage, themetaverse, robotics, sensors and quantum computing.
There are also work groups dedicated to so-called wearables, additive manufacturing, data monetization, AI andmachine learning, materials and hydrogen. The Communities continuously monitor potential technological improvements and share new useful business models, added value
services or use cases for types of technologies that could
be adopted in various Group areas.
We constantly promote and spread the culture, knowledge
and behaviors of Open Innovation in the countries in which
we operate, favoring an approach called “learning by doing”,
which allows people to think and act in a different way anddisseminate methodologies and tools for strengthening
the generation of ideas and supporting their development.
There are many tools and initiatives for innovation that are
useful for the dissemination of the Open Innovation culture.
In addition to the recurring newsletters, surveys and webinars, periodic meetings are held with all Business Lines on
many levels, not just managerial, but also with the non-hierarchical communities. We make the necessary resources available for promoting a culture of knowledge and its
value on all levels, increasing awareness among people also
thanks to training courses, events and meetings.

ISO 56002 standard “Innovation management Innovation management system - Guidance”
Innovation management is a strategic topic for organizations and companies, and the ability to manage innovation
as a system and organize all the phases of the innovation
process represents a critical success factor.
In August 2022, we were among the first companies in theworld to voluntarily adopt the ISO 56002 standard for innovation management. This standard is part of a wider seriesof ISO 56000 standards and covers all aspects of innovation
management: from the creation of an idea to its development on a global scale. By adopting this standard, organizations can consolidate their governance, increasing the effectiveness of innovation and therefore business opportunities, which in turn creates the conditions for a wide-spread
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valuable proposals, in line with market developments.
The standard is based on eight pillars: coherence with theInnovability® vision (innovation for the Company and a moresustainable world); generation of value through innovativeideas; future-oriented leadership and challenges to the status quo; innovation culture as a strategic asset; innovation
development based on customer requirements; management of uncertainty and risk mitigation; proactiveness andresilience; systemic approach for a solid performance appraisal.
Furthermore, in 2022 we signed an agreement with UNI(Italian Standardization Body) to draw up a public document
known as “Reference practices”, which has the purpose of
making Enel a reference on a national level in Italy in the areaof innovation governance.

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How ideas are transformed into business solutions,creating shared value
Here are some examples of Innovability® projects (see also
chapters: “Clean electrification”, “Circular economy”, “Conservation of natural capital”):

Green hydrogen
NextHy: a global initiative designed to stimulate thegrowth of the entire green hydrogen ecosystem.
Its center is the Hydrogen Industrial Lab in Sicily, anindustrial technological validation platform that will
be built between Carlentini and Sortino, where newtechnologies will be developed for accelerating the
reduction of the cost of green hydrogen and thedecarbonization of the so-called “difficult to abate”
sectors.
NextHy is one of the Italian projects that benefited fromthe IPCEI Hy2Tech loan, the 4.5 billion euro fund madeavailable by the European Union for the development ofinitiatives of strategic interest centered on hydrogen.
The NextHy project also includes NextHy Booster, an
acceleration program promoted by Enel Green Power
that has the objective of supporting the most promising
startups to scale their technology and their business togreen hydrogen, creating a long-term partnership with
Enel and connecting to the global network of greenhydrogen.

Customer centricity
Customer recognition through biometric factors (Spain),such as, for example, vocal recognition, to guarantee safe
and inclusive access to our services as an element for
the authentication of customers at call centers, which
improves the personalization of the service, emotional
involvement and accelerating the resolution of customer
requirements.
Pilot project for the application of advanced artificial
intelligence models to improve the operation of contact
centers (Italy, Romania, USA, Spain). These models
personify the needs and language of our customers,
generating concepts/phrases in hundreds of transcripts
thanks to the pre-trained model. This is useful for testing
the qualitative level of our operators, preparing ourselves,in the future, for new evolutionary sales scenarios,
automatic training and proactive support.
Use of neurosciences to obtain more in-depth
information about the efforts customers make tounderstand the commercial communications and tosimplify relationships, thanks to the interpretation of
spontaneous physiological input (Italy).

Smart City
YoUrban (Italy), a single point of access for using all EnelX solutions activated in the urban perimeter, from thedigital management of public lighting system faults tothe innovative City Analytics solution for optimal urban
planning. In 2022, new functions were developed thatprovide a complete overview of communities and areasof improvement in terms of services for citizens, CO2 andthe degree of circularity.

Robots and safety
Innovative robots for inspections of submarine
cables (Italy), operations at a height (Italy and Brazil)
and for cutting vegetation (Brazil), to allow safe andremotely controlled/automatic interaction with network
components for operating and maintenance activities,
and to cut vegetation near the network.
New sustainable helmets (Italy and Romania), that canhouse intelligent glasses for hands-free operation andother accessories to improve safety. They are moreergonomic and made with recycled material.

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Weather predictions, variability of natural resources
and system operation
In Italy, development of four parallel projects, selectedthanks to the tender launched together with ESA(European Space Agency), that are concentrated on
the development of algorithms for estimating theequivalent of snow water and the content of water in
the alpine snowpack via satellite, to be validated with insitu measures. To best manage the production of waterin our power plants, it is in fact necessary to know not
only the amount of rain, but also the volume of watercontained in the snowpack (Snow Water Equivalent),
which is an important temporary reserve of winterprecipitation. Therefore, by improving the prediction of
precipitation and the resulting prediction of hydroelectric
generation through the combination of satellite data,
weather prediction models and in situ data, it is possible
to manage the risks related to the variability in natural
resources and optimize market strategies.
The photovoltaic plant in El Paso, Colombia: the objectiveof the project is to automate the acquisition process ofthe cloud coverage above the plant and provide intraday
and intrahour predictions of radiation, using satellite
images and sky-cams in machine learning algorithms.
The need results from the intrinsic characteristics of thearea, as the El Paso photovoltaic plant is located in an
equatorial area where it is very difficult to evaluate theactual amount of clouds in the sky with normal weather
prediction services.

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Use of water and biodiversity
Collaboration with Reiwa Engine (Italy) for the automaticcleaning of photovoltaic panels without the use of water.
In the wind park of Gibson Bay, in South Africa, aninnovative system for preventing the impact of batsand birds with wind generators was successfully tested
by means of installing an acoustic deterrent device
developed by the US startup NRG Systems, which madeit possible to reduce the risk of mortality for local bats by
80%.
New solutions based on remote image detection systems(such as satellites and LiDAR) and artificial intelligence, areable to identify the presence of archaeological finds andvegetable species before opening the job sites, in orderto protect biodiversity.

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NET-ZERO GRID

The innovation of the electricity grid to mitigate
the environmental impact and improve its resilience

Lourdes García Duarte
Head of Sustainable Network
Design and Resilience-Innovation
Enel Grids

E“Enel Grids is taking another significant step toward
the decarbonization of electricity grids, thanks to thepilot installation of cutting-edge sustainable poles. An
innovative combination of pine or fir materials and withan external layer made of 66% recycled polyethylene.
The new poles make it possible to save up to 130 kg of
CO2eq as compared to similar standard poles made ofconcrete and without the toxic materials used in theold products. This is an important result for making our
networks increasingly Net-Zero.”nel’s Net-Zero strategy for the electricity grid sector is concentrated on reducing the CO2 emissions
from activities, reducing network losses and adopting circular, low-emission materials and components. Aninteresting direction of innovation of Enel Grids is in factthat of Sustainable Design and Resilience, targeted toward mitigating the environmental impact and improving
the resilience of the network with new technologies andsustainable materials, in order to rethink the systems andcomponents.

The utilized wood comes from certified sustainable forests
where there is the obligation to guarantee and not alter
the continuous growth of the forest, whereas the external layer of polyethylene seals the wood, protecting it fromatmospheric agents, improving its fire resistance and preserving fauna from the electrical risk. The absence of impregnating material, which was used for the old wooden
supports, represents an additional result in terms of sustainability, in line with the new directives issued by the European Commission.

The pilot project of the sustainable pole was field tested inthis sector. The solution was also tested by some Northern
European DSOs. This is a new support for low and medium
voltage. It is made of wood obtained from certified sustainable forests in order to reduce the carbon footprint of
the electricity grid. The main structure is made with certified wood, whereas the external layer is comprised of 66%
recycled polyethylene. The poles, thanks to the innovative
combination of two materials, make it possible to save up
to 130 kg of CO2eq with the same dimensions of standard
cement poles.

The pilot project successfully tested mechanical resistance and resistance to aging, and was able to evaluate
the operational installation and maintenance activities.
For in-depth information about the Group’s activities concerning network infrastructures, see the chapters “Clean
electrification” and “Circular economy”.

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NET-ZERO GRID

Focusing on hydroelectric flexibility to accelerate transitionand promote national energy autonomy

Vincenzo Ricchiuto
Short term management
Italy, GECMT

he challenge we are facing is to explore capacities
that are not yet expressed in terms of flexibility ofuse of the existing renewable fleet with innovative
modernization, efficiency improvement and management
interventions. With experimental modeling and the implementation of new operating schemes, which keep up
with the continuous regulatory changes, we are aiming totest and highlight the pivotal role that the hydroelectric
fleet can take on during the energy mix evolution process
thanks to its extreme versatility and wide-spread presence
all over the territory.
In 2022, the first phase was completed with a 5-year timeschedule of initiatives that basically involved the most of
the Italian programmable hydroelectric fleet with a specificinvestment plan. For some it was an extension of potential in terms of regulation and flexibility of use, whereas forothers it was a true start in a new activity; the purpose ofit all is to guarantee also with hydroelectric a continuous
service for the electricity grid oriented toward balancing
the intermittence generated by NPRS (non-programmable
renewable source) thereby favoring the safe penetration of
new capacity.

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“The role of hydroelectrics, a clean source par
excellence, in the electrical system is becoming more
important as an enabling technology for transition
thanks to modernization and flexibilization projects
developed in full compliance with the environment
and local communities. This result was made possible
by an intense and lengthy synergy with Generation,
Innovation and the Territory.”

In particular, in Italy, the increase in terms of MW enabled
for the secondary regulation service was more than 550
MW approx., equal to 11% approx. of the total currently enabled for all technologies in Italy. Furthermore, approx. 50
plants, for a total of 650 MW approx. have been enabled
for the market of services also through aggregations andinnovative modeling.
As is known, 2022 was a year with strong geopoliticaltensions, but also a record shortage in the hydroelectric
resource, causing considerable increases in production
costs and unexpected reductions in availability of somethermoelectric plants.
In this context, the plants involved in the efficiency improvement and flexibilization program have provided aconsiderable contribution with regard to the safe management of the electricity grid and the containment of systemcharges, especially during the most critical periods.

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Appendix

Sustainable innovation and intellectual property
In the Open Innovability® ecosystem, Intellectual Property(IP) plays a key role in protecting and enhancing the value of the innovative solutions created and developed inhouse or in collaboration with third parties.
IP is a key component to regulate and foster the sharingof ideas, technologies and knowledge between Enel peo-ple, startups, universities, research centers, suppliers, andconsultants.
As at December 31, 2022, the IP portfolio, which ensuresprotection from a geographical point of view on all themarkets in which the Group is present, contains:

883

23

194

patents forindustrial invention,
belonging to 163
technology families;of these, 711 havebeen granted and
172 are pending

utility models

designs registered

As part of the activities aimed at protecting and developing the portfolio of trademarks owned by the Group, notably, in the year of Enel’s 60th anniversary, in addition to
the registration of the “Enel 60 years” mark, the procedure for registering the Enel brand in the Special Registerof Historic Trademarks of National Interest was initiated.
This important recognition is awarded, following the submission of a special application, to trademarks that havebeen registered for at least fifty years, or for which there
is proof of their continuous use for at least fifty years, andthat are used to market products or services made in a national production company of excellence with long-term
links to Italy.
Other notable achievements include the registration of
trademarks that identify models operating in the field ofsustainability, such as:i. Valuability® of the model, copyrighted by Enel SpA,
aimed at fostering the inclusion at work and active participation of colleagues with disabilities;
ii. CirculAbility® of the model – also copyrighted by Enel
SpA – for measuring circularity.
Enel has consolidated its processes for managing thegeneration and use of intellectual property rights in theIntellectual Property Management and Trade Secrets
Management organizational procedures. Both of theseview human capital as an essential element in the creationof IP and aim to incentivize employee participation in theinventive process, empowering them on the strategic importance of all findings.

Tradesecretsof a technical andcommercial naturethat are constantly
coded and kept
in line with therequirements of
the internal Trade
Secrets Management
organizational
procedure

2,027
trademarks,of which 1,642
have already beenregistered, and 385
are pending

Through the IP Reward Program, prizes and awards, including monetary ones, are paid to Enel inventors of solutions
protected (or in the process of being protected) by patent,
design, copyright or trade secret. As part of the IP Reward
program, the first edition of the Enel Intellectual Property
Awards were held on November 29, 2022, where the inventions protected by intellectual property and deemed moststrategically relevant to the Group were honored. These
initiatives, together with regular internal communication
and awareness-raising activities, have also contributed to
an increase in the number of inventions proposed by employees through the company IP portal.
During 2022, intellectual property codification and protection activities continued in all the Global Business Lines. In
particular:• Enel X Global Retail focused its activity on strategic platforms, codifying copyrights on the Big Data Platform, thestrategic data container for all Enel X business units, andX Customer, the global Enel X customer management
system.
With regard to the circular economy, the circularity
schemes in Enel X, together with their scores and operating mechanisms, have been protected under copyright law.
In the field of telemedicine, a multiple design mark was
registered in the European Union on the graphical userinterfaces of the “Smart Axistance eWell” app, which offers users a complete wellness package.

Innovation273

• In Enel Green Power and Thermal Generation, the fol-lowing notable developments were achieved during theyear:– in the photovoltaic sector, (i) a patent application for
an industrial invention and a design patent on a solution that automates the process of installing photovoltaic panels in the field, reducing installation timeand costs and increasing operator safety; (ii) a patentapplication in co-ownership with the Commissariat àl’Énergie Atomique et aux Énergies Alternatives (CEA)
on a system to optimize the automatic removal andinsertion of the wafer bar holder of the storage tray
used to process wafers in chemical hoods. In addition, the generation and protection, mainly in theform of trade secrets, of the technological know-how
required for the Gigafactory project continues at the
3SUN factory.
CEA-INES is one of Europe’s leading photovoltaic research institutes. A collaborative research agreement
was negotiated and signed with the institute for thedevelopment of the two-terminal Perovskite-silicon tandem technology, with the aim of producing
high-efficiency devices that can be industrialized on
the lines of the Gigafactory in Catania. The management of the IP rights arising from the collaboration
was a crucial factor in the negotiation of this agreement, which is based on the strong technologicalbackground of the two partners;– in the field of hydroelectric generation, a utility model patent application for a robotic solution that facilitates plant inspections by enabling access to allplaces that are difficult for personnel to reach, suchas hydroelectric coils or small-diameter hydroelectric
pipelines.

• Enel Grids filed two patent applications for inventions in

2022: one in the field of asset recognition and anomaly
detection of grids and grid events (ODIN project) and theother in the field of safety devices for workers working atheight. Other noteworthy events included: (i) the registration of the design of the new sustainable road cabin,which will be developed using recycled materials to reduce environmental impact, and (ii) the filing of a utility
model patent application in the field of safety, consistingof a method for delimiting road construction sites.
Also during the year, Gridspertise consolidated its IP
portfolio by filing a patent application for the Quantum
Edge – QEd® device, which, by exploiting edge computing to digitize the physical components of secondary
substations, reduces installation, training, operation andmaintenance costs and increases network reliability.
Enel Grids concluded two major licensing agreementswith Gridspertise in 2022 for the commercialization ofsome of its key digital assets, including the Grid BlueSky solutions. These agreements constitute a milestone274

Sustainability Report 2022

in the valorization of Enel Grids’ intellectual property
through an out-licensing strategy. Gridspertise will participate within the framework of these agreements as acommercial and technical partner, offering customized
versions of licensed digital solutions to meet the specificneeds of third-party DSOs.
In May 2022, Enel Grids founded the “Open Power Grids”
association, for the first time making its historical wealthof expertise and experience on distribution networks
accessible free of charge to member operators outside
the Enel Group. The objective of Open Power Grids is
to create a collaborative ecosystem to foster innovation, aggregating experiences, ideas, technologies andresources to make electricity grids more resilient, sustainable and participative, also based on a market-driven standardization process. In this way, the initiative canhelp improve the effectiveness and measurability of theconcrete actions taken by Enel to achieve the Net-Zero ambition. The proposed approach is to provide open
access, within the association, to the existing functional
specifications (of electricity grid components and devices and network design solutions) on which Enel Grids
holds copyright and, based on these, to develop newones, in a logic of co-design, maximizing the aspects ofsustainability, standardization and innovation.

• Enel X Way protected the JuiceBox DC and JuiceBox 4.0

smart home charging devices respectively through: (i) aninternational design registered in the European Union,
the United Kingdom and the United States and (ii) an international design registered in Canada, Mexico and theUnited States. Intellectual property protection work onelectric vehicle charging stations also extended to theregistration of the JuiceMedia 2.0 and JuiceMod productdesigns in the European Union and the United States.
In the field of electric car charging points, Enel X Way
pursued the goal of inclusiveness by designing infrastructures that take into account the needs of motorists with reduced mobility. In fact, in collaboration with
ANGLAT, the national trade association that protects
the rights to mobility of people with disabilities, and following the criteria of Universal Design, Enel X Way has
created an additional maneuvering area marked on the
ground by zebra stripes and featuring bollards to protect the infrastructure from possible impacts. With theintention of promoting the project and facilitating its
usability by as many users as possible, Enel X Way enhanced the intellectual property of the designs throughthe open property model with author protection throughCreative Commons. Specifically, Creative Commons Attribution-Non Commercial licenses were applied, whichallow third parties to download and use the designs freeof charge.

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We empower sustainable progress• Enel Global Services filed a patent application in Italy for

an industrial invention on the innovation management
method, also protected as the word mark Enel OOPS...!
Innovation®. This method is based on perfecting industrial processes using the tools of Open Innovability®.

Enel SpA also filed a patent application in Italy for a methodof evaluating managerial positions, based on a model capable of acquiring and processing personnel management
parameters using a proprietary algorithm, thus providing ameaningful index that meets the needs of the People andOrganization Function.
More generally, the Group continues to invest resources in the development of IP-intensive solutions, mainly inthe forms of authorship protection and trade secrecy on
databases and algorithms for forecasting the electricity
and gas markets, advanced quantitative models that use,3

Materiality analysis

4

Our performance5

Appendixamong other things, scenario data to assess the impact
of climate change on specific assets/production activities.
The most notable investments in this area include development models that aim to: (i) characterize an asset’s ability
to “withstand” the possible effects of climate change; (ii)quantify the likelihood of an event or combination of climate events damaging the asset; and (iii) provide an index
of the asset’s “weakness” with a specific technical approach to prioritize actions/fields for improvement.
Finally, during the year, the Group consolidated its internal non-financial intellectual property reporting process
based on an internal proprietary methodology capable ofcodifying, protecting and valuing corporate intangibles.
This methodology aims to provide a qualitative assessment of the intellectual property and an indication of theinvestment that would be required to replicate the set ofintangibles subject to codification.

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Digitalization

Material topics (I level)

Doublemateriality

Plan

SDG

• Innovation, circular
economy and digitaltransformation

Growth accelerators• Digitalization

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG
4
9

Activities

2022 results

Disseminating the IT security culture
and changing people’s behaviour inorder to reduce risks

Progress2023-2025 targets

Tag

19 cyber security knowledgesharing events executed

15 cyber security knowledgesharing events executed eachyear

S

Information security verification
activities (Ethical Hacking,
Vulnerability Assessment, etc.)

1,587 verification activities
carried out

1,400 verification activities
each year

T

Execution of cyber exercises
involving plants/industrial sites

50 cyber exercises carried out

186 cyber exercisesin the period 2023-2025

S

T

Cyber security

11

9
11

9
11

T

Read more
Cyber exercises are drills aimed at simulating a cyber security incident, carried out withthe objective of training the reaction capacity of the involved subjects and testing the processes and technologies in the field. The exercises are conducted by Enel’s Cyber Emergency Readiness Team (CERT) and involve both technical and business reference structures. The simulation performed generates awareness and addresses possible needs for
improvement of technical or organizational aspects.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2276

Bilancio di Sostenibilità
Sustainability
Report 2022
2022

Achieved

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Activities

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Materiality analysis

2022 results-54.8 mil printed pages(vs 2019)

12
13Progress4

Our performance5

Appendix2023-2025 targets

Tag-17 mil printed pages in 2025
(vs. 2019)E
S

Digital solutions

T

Activities to reduce CO2 emissions

7.3 mil hours of downtime
outside normal working hours

Activities to reduce PC, laptop
and monitor downtimeEST

7.3 mil meetings held via videocommunication services

Extended use of videocommunication systems

E
S
T

9
12

Reuse and exchange of information in
the e-API Digital Ecosystem

63 new e-API interconnections

100 new e-APIinterconnections in the
period 2023-2025

S
T

Read more
The e-API Digital Ecosystem is the digital environment through which all the companies ofEnel Group can easily, quickly and automatically share information normally confined within
specific vertical applications (“silos” of information). Thanks to the enabling technology of
the API (Application Programming Interface), Enel’s data flows and functionalities are treated as “data-as-a-product”, fostering sustainability through a real reuse and exchange of
information and a reduction of time and resources needed.

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3

Digitalization

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Appendix

1,587
ASSURANCECHECKS (ETHICALHACKING,
VULNERABILITYASSESSMENT)
1,580 in 2021
+0.4%

6SIMULATEDPHISHING
CAMPAIGNS
4 campaigns
in 2021+50%

19
EVENTSTO RAISE
AWARENESSOF CYBER
SECURITY

Technology is essential in order to innovate,
guide and enable the creation of sustainable
development models.
Indeed, digital technologies, bothestablished and cutting-edge, contributesignificantly to improving energy efficiency,
decarbonization, and the developmentof automated business and production
processes, thus promoting the circular
economy and new business models.
Through such platforms, increasing levels of
scalability and efficiency can be achieved,
reducing marginal costs.
Specifically:• our global digital platforms promote thegrowth of renewable energy by providing
common interfaces and smart solutions,
thanks to technologies such as Digital Twin
and Artificial Intelligence, which improvebusiness development, engineering andconstruction, operation and maintenance;

18 events
in 2021• improving service quality, efficiency andthe resilience of our grid infrastructure isdriven by a single digital platform, Grid Blue
Sky, which standardizes and optimizes theengineering, operation and maintenancephases and places the customer at theheart of every activity;• our global customer base is managed by
the Customer Operations platform, which
renders the customer support, service
activation, payment and billing processes
smart, replicable and automated. We also
leverage Enel X’s digital platforms to globally offer innovative products and services
for the B2C, B2B and B2G segments;• the working life of all our people is increasingly supported by digital, allowing them tofocus on higher value-added activities andensuring their security.

Technology+5.6%

Digital Company

OperatingModel

Our people

Digitalization279

Sustainable digitalization and digital for sustainability
In our digital transformation, we aim to use digital solutions
as tools for the development of a sustainable future, and todevelop them on the basis of sustainability criteria.
The main actions taken in 2022 concerned:• 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. For more information,
see the chapters on “Managing human rights” and “Sustainable supply chain”.
Several challenges have been launched on the openinnovability.com platform with a view to incorporating environmental considerations in their resolution (see chapter on“Innovation”).

Furthermore, in line with the 2030 decarbonization targets,a number of criteria based on Global Warming Potential
were included in tenders for digital professional services
in 2022, which allow participants with lower greenhousegas emissions in terms of CO2eq to gain a higher technicalscore.
In 2022, we drafted and published our Digital Sustainability Policy, which establishes the sustainability orientationof the Group’s initiatives and considers digital to be a key
factor. With this Policy, we are committed to ensuring that
the Company’s digital solutions comply with sustainability
criteria, as well as promoting the sustainable use of technology in all business processes, at all stages of the initiatives and in the different countries of the Group.
We also launched a project in 2022 to create a corporate
framework in which to assess and mitigate the ethical risk
related to the use of artificial intelligence and ensure its
safe and efficient use, in line with legislative changes at European level.

PLATFORMS: ensuring a rapid and effective response
to continuous change

Roberto Bianchessi
Head of Platformization Services –Global Digital Solutions

T

he digital platforms are one of the pillars of Enel’s
strategy, since they are, together with the ecosystems, tools based on maximum information
sharing and mutual trust.
Being platform-oriented allows us to create a competitive
advantage as digital platforms enable new operational andbusiness models (e.g., sharing economy).
The Enel Digital Platform is the final step in realizing Enel’s
full digital potential: it allows easy access to all Company
databases, breaking down silos and information barriers,and fostering collaboration and digital sustainability.
The reuse of data and conscious software development
have a direct impact on the reduction of carbon emissions.

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The new Company strategy
that transforms complexities
into opportunities“Platforms play a key role in the Company in that theybuild trust for all our colleagues. They make it possible
to share knowledge, enabling new operational andbusiness models.”

This Enel Platform will be an ecosystem of technologies,
methodologies, services and skills deeply embedded in
the corporate culture. The goal is to foster participativeand strongly data-driven digital development ecosystems,
based on an agile approach to operations and the use ofcloud technology.
For this reason, in 2022 Enel decided to launch the Platform
School initiative to spread the potential of Platformization
among all Enel people through a “train the trainer” educational model: in-house trainers, skilled in sharing strategic
concepts, guide the transmission of knowledge throughvideo and bitesize information materials.

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Appendix

Key drivers of the digital transformation
Cloud computing
The cloud represents a fundamental strategic enabler
which allows us to use IT resources (both in terms of infrastructure and applications) and which, by making full useof the access possibilities provided by the network, allows
to reduce waste tied to the consumption of unused resources. The migration of applications to the cloud made it
possible to significantly reduce the demand for energy andconsequently the consumption of resources. From 2019 todate, while data storage and processing capacity have increased considerably, there has been a 52% reduction in
CO2 emissions.

Unified Communications andCollaboration (UCC)
Services such as instant messaging (chat), IP telephony,audio and video conferencing take full advantage of the
sharing model which, through the internet, allows content to be shared and enjoyed from personal computers,
smartphones or tablets, thereby reducing the need to travel and, in turn, lowering carbon dioxide emissions.

Data sharing and Enel Application
Programming Interface (e-API)The e-API ecosystem is the digital environment where
all Group companies can share quickly and in real time –through standard interfaces and data paths – informationthat would normally remain confined to specific verticalapplications (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 time and resources spent on exchanging information flows. A total of 63 new e-API interconnections
were implemented in 2022.

Machine learning and predictive
maintenanceWe adopt machine learning technologies to conduct predictive analysis in relation to the maintenance of electricity
distribution networks and generation plants, identifying
possible errors in advance and acting before faults occur
on the main components. Reducing the risk of malfunctions has a significant impact not only in economic terms,
but also in relation to the environment and personal safety.
Therefore, using these technologies improves the qualityof service provided, making it more sustainable over time,
while ensuring an optimized use of internal resources andinspections focusing on the equipment most exposed to
the risk of failure.

Circularity of digital devices
The decommissioning of Company equipment generates
waste, the disposal of which merits special attention. For
this reason, the circular management of digital assets in
the Group’s various countries is achieved by safeguarding
both the extension of the devices’ service life, by sellingthem to employees or third parties (13,427 devices sold in2022), and disposing of these devices in line with recycling
principles, amounting to a total of 33 tons of equipmentin 2022; devices categorized as electronic waste are disposed of at certain suppliers, who will then recycle the devices themselves.

Digital Carbon
Footprint
In 2022, we launched several initiatives to monitor
and reduce digital-related emissions, mainly aimed
at optimizing and consolidating the use of cloudinfrastructure, promoting circular and sustainable
management of digital assets, and encouraging theconscious and responsible development and use ofsoftware and hardware.

In this context, we developed a Digital Carbon Footprint
Framework, which confirmed that with a 200% increasein the computational capacity of our systems and a 107%
increase in data storage capacity, we were able to achieve
a 26% reduction in CO2 emissions from digital sources
between 2018 and 2022.

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Digital for people“Digital Sustainability” school
In 2022, we made available to our people a training course
on “Digital Sustainability”, consisting of 10 videos, to better understand how digital technology guides us towards
achieving the UN 2030 Agenda’s Sustainable Development
Goals. This training course, delivered in collaboration with
the Digital Sustainability Foundation, also aims to raiseawareness of behaviors related to the use of digital technologies, enabling us to understand the contribution we
can make in our daily lives to sustainability. The videos are
now available in five languages and have over 50 thousandviews among Enel people around the world.

Accessibility and inclusiveness in digitalsystems
The use of data and platform logic, coupled with the accessibility and inclusiveness of digital systems, allows access to new joint business models and the offer of newservices and products, including to vulnerable customers.

The accessibility of digital solutions must be provided forat the design stage, which is why the Digital Accessibility
organizational unit was created in 2022 in order to act asa point of contact for the Group and support the management of related initiatives and the development of digitalproducts and services that are easy to use and compliant
with the relevant regulations and standards.

A new life for our PCs
The initiative to donate personal computers that havereached the end of their service life has been implemented
with the aim of creating a positive social impact on public
and private entities, which carry out various kinds of activities of social relevance and/or which pursue public benefit
purposes. By giving PCs a new life, for the second year weare reinforcing our commitment to supporting communities in the countries where we operate, by promoting digital inclusion and enhancing the circular economy of digital
devices, thereby extending the equipment’s service life
through reuse. 213 devices were donated in 2022.

Video communication(1)Printing service(2)More than 7.3 million meetings

81 million pages printed

More than 639.3 thousand tons of CO2 avoided

5.8 tons of CO2 produced

The printing service, based on new generation printermodels set up for a more eco-sustainable use, continues to be in operation at all Group offices. Together witha more rational use of prints and digitalization, the service(1)

has made it possible to reduce paper consumption over
the years and, in turn, reduce the impact on the environment.

More than 7.3 million meetings in 2021, almost 5.1 million in 2020 and 244 thousand in 2019, respectively avoiding contributing 587.5 thousand metric tonsof CO2 in 2021, 444.7 thousand in 2020 and 242.1 thousand in 2019.
(2) 83 million pages printed in 2021, 88 million in 2020 and 136 million in 2019, which respectively produced 6.5, 8.4 and 12.5 tons of CO2.

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PC Power Management– Italy(3)7.3 million hours of use
48.8 tons of CO2 produced

In 2022, we continued to monitor electricity consumption outside normal working hours(4) of the IT worksta-

3

Materiality analysis

4

Our performance5

Appendix

tions (desktops, laptops, monitors) of our people working
in Italy. This was measured thanks to a Microsoft function(System Center Configuration Manager) on the workstations, which can identify when a workstation is on andnot being used. Following the analysis, specific awareness-raising initiatives were defined, aimed at reducing
electricity consumption. Also this year, there has been adecrease in the hours of inactivity. This is thanks to both
our awareness-raising activities on energy efficiency andto the new IT tools made available to our people during
the Covid-19 pandemic, which enabled a reduction inemissions. The greater use of mobile devices has in fact
made it possible to reduce the number of fixed devices in
the Group’s offices and, in turn, cut down the amount oftime that devices are on outside working hours.

(3) 12 million hours of use in 2021, 18 million in 2020 and 32 million in 2019, which respectively produced 77.4, 159.6 and 321.1 tons of CO2.
(4) Monday-Friday (from 7pm to 7am); Saturday and Sunday. Monitoring is not carried out on servers and personal computers which, by their nature, must be
operational at all times. Specifically, the indicator represents the amount of CO2 associated with the electricity consumption of desktop computers, laptops
and monitors, calculated after applying the average CO2 emission value per unit of electricity generated (gCO2/kWh) in relation to the mix of sources present
in Italy.

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Towards cyber-safe
electrification
In the era of digital transformation, cyber security is taking on a key role in ensuring business operations.
Typical cyber-attack types have changed radically in recent years: the number has grown exponentially, as has
their level of sophistication and impact, making it is increasingly challenging to identify the source in a timely
manner. Sector studies confirm that the perception of
cyber risk is continuously growing. As compared to previous years, the causes for increased cyberattacks also
include geopolitical tensions. In fact the conflict between
Russia and Ukraine has increased attention about this issue. In particular, all state security agencies have warned
public and private institutions about potential IT threads
against critical infrastructures.
In 2022, many of the world’s major attacks were 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 interesting to observe that the majority of
the attacks in the energy sector include ransomware, anincreasingly used method that causes the exfiltration (unauthorized copy, transfer or recovery) of the victim’s dataand its encryption, which gives the people responsible
for the attack an additional lever for receiving paymentof ransom.
It is also seen how the vulnerabilities detected in commonly used software products are continuously increasing and how they are taken advantage of with greater
speed by cyber criminals. In particular, the zero-day typevulnerabilities represent a large risk because they are discovered before software developers become aware ofthem and before they can release a patch.
In a similar context of cyberwarfare, the only possible defense is given by processes and technologies, which havebeen developed and evolved over time to mitigate theIT risk. On top of constantly applying the cyber security
strategy, we have set out special measures, also in orderto reinforce the “cyber security posture”,(5) aware of thefact that overall, cyber risks can become a risk of ecosystemic proportions within the broader context of thecomplex and interconnected electricity industry. For example, a large-scale blackout in this scenario would havesocio-economic ramifications throughout the population, companies and key institutions.
The key elements are therefore sharing and cooperation on cyber security issues with participation among

all stakeholders including companies, legal institutions,supervisory bodies, suppliers, customers, and employees.

Policies and management models
In line with the needs of the energy industrial sector andwith the Open Power strategic approach that characterizes it, we have adopted a systemic vision of cyber security
issues, as well as a global strategy of analysis, prevention
and management of cyber security events. The cyber se​​curity path to support the Group’s digital transformation
is based on creating, enhancing and adopting a security
governance model, infrastructure and services in order tomake full use of opportunities – including with the help of
cutting-edge technologies – to boost the cyber resilienceof our infrastructure and applications.
Since September 2016, the Cyber Security unit has been
operating within Global Digital Solutions Function, reporting directly to the Chief Information Officer (CIO) who
works under the Group Chief Information Security Officer(CISO). The unit is committed to ensuring the governance,
direction and control of cyber security issues, establishingstrategy, policies and guidelines in compliance with national and international regulations, engineering support
for the protection of the Group’s environments, monitoring of 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 tomitigate any weaknesses detected. The unit works synergically with the Business Lines and with the technical units
responsible for systems design and management, thanks
to the Cyber Security Risk Managers and Cyber Security
Response Managers. CISO and the Cyber Security Risk
Managers also make up the Cyber Security Operating
Committee, which aims to evaluate cyber risks across thebusiness and determine the risk acceptance criteria basedon 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 checks its progress. As determined at the meetingof April 2021, the Committee meets every six months. Twomeetings were held in 2022 (May and October).
In 2022, the Control and Risk Committee held 3 meetings
with the objective of addressing in more depth the aspects related to organizational procedures (on a technical and governance level), the crisis management process,(5) “Cyber Security Posture” refers to the state of society’s adoption of cyber security principles.

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the CERT operating model and the relative processes thatcharacterize them.
All areas actively participate in implementing the cyber security strategy by way of an integrated operating plan inline with the Group’s objectives. Moreover, cyber security
strategy and initiatives are a key focus area for the principal executive and control bodies (e.g. Board of Directors,
Supervisory Bodies, 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.
This Framework, based on a ‘systemic’ vision applies acrossthe more traditional Information Technology (IT) sector, as
well as to Operational Technology (OT) environments tied
to the industrial world and the Internet of Things (IoT). In
applying this Framework, the Cyber Security Risk Management method was established in 2017. The method isapplicable to all IT, OT and IoT environments and includes
all of the phases required to carry out a risk analysis anddefine the related mitigation plan, in line with the statedcyber security goals. To balance the advantages obtainedby the operation and use of IT/OT/IoT systems with the riskthat can 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 also encouraging collaboration and exchanges of information within a networkof accredited international partners. Having entered into
an agreement with the US national CERT, there are now 9
accreditations with: Romania, Italy, Chile, Argentina, Peru,
Colombia, Brazil, Spain, and the US. Enel’s CERT is also partof Trusted Introducer – a service that includes 464 CERTs
in 72 countries. In September 2018 Enel also joined FIRST(Forum of Incident Response and Security Teams), which is
the largest and most widespread community in the sector,
with 602 members spread across 99 countries. Furthermore, in 2022 the CERT operating model was strengthened
with the creation of an internal team of security analysts.
The new operating model has exceeded the previous one,
implementing the internalization of the incident monitoring and management activities and therefore, strengthening the activities 24x7.

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AppendixDefinition of the
IT security strategy
The cyber security strategy covers setting objectives andpriorities 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 inorder to assess the feasibility, guarantee consensus, andthe necessary funds. The Cyber ​​Security unit guides theprocess and, together with the other key players, graduallyconsolidates aspects such as future scenario, objectives,and possible strategic initiatives in a cyber s​ ecurity strategy proposal document, with a high-level budget estimate
and prioritization.

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Cyber security incident
management

at risk e-mails, 57 viruses, 172 web portal attacks, and 1.3
million connections to harmful websites every day.
In 2022 Enel CERT responded to: 175 cyber security incidents with impact level 2; 16 incidents with impact level3; and 0 incidents with the highest impact level of 4.
In the cases detected, to ensure an efficient and rapid response and minimize the impact on people, services andassets, all the relevant management procedures have been
put in place.
Specifically, when a cyber security incident translates into
a potential data breach, the necessary actions are taken
immediately, in line with the Enel Group “Personal Data
Breach Management” policy. Should a crisis situation arisethat threatens the Enel Group’s business continuity, assets,
reputation and/or profitability, the appropriate actions aretaken 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 caused by an accident.

The multiplicity and complexity of the areas in which we
operate (data, industry, and people) and of the technological components (e.g. business critical systems such
as SCADA – Supervisory Control and Data Acquisition,
smart grids and smart meters) increasingly integrated in
the Group’s digital life, have made it necessary to configure a structured cyber security system. This leads to theneed for a cyber defense model based on a systemic visionthat integrates the IT sector (starting from the cloud down
to the data center and mobile phone), the OT (everything
concerning industrial sector, such as generation plant remote control) and the IoT (extension of communication
and artificial intelligence to the world of things).
Through the monitoring systems, CERT collects 3 billion
events every day relating to the company’s assets from 7
thousand data sources, correlates them through automatic analysis, and produces a hundred “incidents” on average. The 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; thesehave no significant impact on Group systems and are automatically or semi-automatically intercepted and/or managed by the existing company defenses; this way they areable to prevent and/or mitigate the impact of potential cyber-attacks.
Incidents classified as 2/3/4 have a potential impact on theGroup and are managed by CERT analysts, involving any
affected stakeholders. Thanks to the protection services,
every day, in 2022 CERT intercepted on average 1.2 million

EDR (Endpoint Detection and Response) technology blocks
violations by using innovative features and advanced paradigms not only to identify viruses and malware on endpoints, but also to detect suspicious sequences of technical events that could prove to be part of an attemptedattack.
Detailed below is the number of cyber security events recorded in 2022.
2022

Total number of cyber security breaches or other cyber security incidents

0

Total amount of fines/sanctions paid related to cyber security breaches or other cyber security incidents

0

Total number of customers and employees impacted by data breaches affecting the Group0

Total number of data breaches(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 incidents.
(2) The KPI “Total number of data breaches” refers to the number of events that occurred as a result of a cyber security incident (i.e. the number reported does
not include any disclosures occurring as a result of non-digital incidents).

Furthermore, in order to boost our capacity to prevent, react to and manage incidents, some cyber exercises simulating a real attack were carried out, involving staff working
in the production environments. At the end of each exercise, reports were produced containing details of the actions taken during the simulation, to assess – with a view to286

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continuous improvement – the quality and completenessof the materials provided to help with decision-making,the execution times for each phase, and how well the procedures had been followed. In 2022, in particular, 50 cyber
exercises were carried out in industrial environments in 11
Countries where the Group is present.

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Main projects and initiatives
All cyber security projects, programs, and initiatives aredesigned to avoid, mitigate or remediate cyber security

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Appendixrisks for the entire Group. As a result, all activities are managed with a risk-based approach following the security bydesign principle to ensure a continuous due diligence process that also includes self-assurance activities.

CERT – RISK MONITORING EXTENSION“CERT – Risk Monitoring extension”. CERT uses emergency technologies such as SOAR (Security Orchestration, Automation and Response) and machine learning tosupport Big Data, which make it possible to automate andstreamline incident management activities and make useof improved visibility of cyber threats, increasing efficiency in managing new ones and the related investigations. In
particular, thanks to the SOAR system, through the definition of operating flows it is possible to automate repetitive
tasks, whereas through machine learning, a branch of ar-tificial intelligence, it is possible to learn or improve detection capacities based on available data.
These technologies make it possible to consistently accelerate, enrich and trace the necessary activities during theanalysis and management phase of an incident, providing
considerable support to the analyst who can therefore
parallelize and concentrate on more complex tasks that
require human intervention.

MULTI-FACTOR AUTHENTICATION (MFA)“Multi Factor Authentication (MFA)” is a cloud solution
used to enforce the identification method for users during
the authentication procedure. Adopting MFA enables aperson accessing a system to identify himself/herself
through a second authentication factor via SMS or an app
installed on his/her smartphone. The MFA solution is inline with the regulatory framework and is strongly recommended to counter emerging threats of theft of credentials, including those using social engineering techniques(e.g., phishing or potential user behavior not in line with
policy). The adoption of the solution is operational for allusers.

ASSURANCE CHECKS
Assurance checks (Ethical Hacking, Vulnerability Assessment). These activities are carried out on an ongoing basis
both using automated tools and manually, to assess andquantify any weaknesses in IT, OT and IoT environments(applications, systems, IoT devices, architectures and/or in-

frastructures). 1,587 checks were performed in 2022. Following these checks, we can identify the best measures toeliminate or mitigate the detected vulnerabilities or threats
and, in turn, any associated harmful exploits.

DMARC “E-MAIL FRAUD DEFENSE”
DMARC “E-mail Fraud Defense”. This solution completes
the application map covering threats of spam, phishingand fraud attempts. Thanks to this, all of Enel’s e-mail domains are configured to permit blocking e-mails with anincorrect sender address that exploits the Group brand.
Deployment took place across the entire perimeter, thereby providing complete coverage of the domains.

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Collaborations with externalbodies and agencies

Training
and information

In line with the Open Power approach, we believe that
networking with external entities and organizations is a
key element in the cyber security strategy, to share bestpractices and operational models, develop and strengthen
information sharing channels, and help establish standards
and regulations. In 2022, we provided feedback in public
consultations to help draw up cyber security regulations,
including by drafting legislations, promoting a harmonization of the current regulatory landscape in this area, andimplementing a risk-based approach and the principle ofsecurity by design. Collaborations carried out also aim toconstruct more homogeneous structures for defining thetaxonomy of security incidents, more organic criteria for
their classification, as well as more harmonious notification
procedures in European contexts. These collaborations arealso guided by a complex regulatory landscape in the cyber security area, both in terms of an increase in standards
produced as well as in terms of complexity, mainly due tothe new regulations that are added every year, in addition
to the heterogeneity of requirements and the methods ofadoption.
In this sense, the process aimed at regulatory compliance
can have a strong impact both on company processes adwell as on the technological infrastructure, requiring a major effort in terms of management and monitoring.
Moreover, taking into account the context of regulatorycompliance, no cases of non-compliance with standards
or cyber security regulations were detected in 2022.
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. We took part, for example, in the Confindustria
Digitale team, which aims to help develop the Italian digital
ecosystem, we participated in the working groups of theWorld Economic Forum, and contributed in recent years
to the publication of several reports including “Cyber Resilience in the Electricity Ecosystem: Securing the Value
Chain” and “Cyber Resilience in the Electricity Industry:
Analysis and Recommendations on Regulatory Practices
for the Public and Private Sectors”.
Furthermore, Enel X, Gridspertise and Enel Grids havereached an important goal in the area of IT security by obtaining ISO 27001 certification. This important result certifies some processes that have an IT security management
system – policies, procedures and guidelines for providing
customers with trusted products and services.

The “Cyber Security Awareness Program” has become aconstant and ongoing initiative at Group level; it used todisseminate our cyber security culture and raise awareness of threats and attacks that exploit the human vector. This program contributes in fact to digitalization,
because 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 thefirst line of company defense. It also uses various communication channels and dissemination tools, including
both communication campaigns as well as dedicatedtraining initiatives for clusters of people. Specifically, 19
knowledge sharing events were held in 2022 on a Global
level on the issues of cyber security and various initiatives were held also on a local level. For example, within
the scope of these initiatives, Policy no. 1097 “Rules of
Behavior for Digital People” was integrated with a quick
guide, available in all the main languages adopted in theGroup (5 different languages) targeted towards facilitating a quick consultation of topics for directing the correct use of digital resources. Bulletins and news were also
created and disseminated through the company intranet
and documents were made available to stay always up todate on these issues. All of this was made possible also
thanks to the awareness platform “TheRedPill”, the Group
platform through which training content and modules aredelivered in order to strengthen the IT security culture, allowing the continuous improvement of training initiatives
and the performance of simulated phishing campaigns.
Its objective is to raise awareness of the main cyber security issues, address any upskilling and reskilling needs andteach how to defend against possible attacks. Four global
simulated phishing campaigns, a knowledge assessment
and an awareness campaign were launched in 2021 – theyear the platform was updated. During 2022, additional
initiatives were launched on a global level, such as thedissemination of the “Antiphishing Kit” module, or thelaunch of the “People Cyber Empowerment Journey”, or
the program that aims to make Enel people the first lineof IT defense. Furthermore, 6 simulated phishing campaigns, 3 awareness campaigns related to digital identity protection, data and device protection, and 19 events
targeted to disseminating the culture of IT security were
designed and launched (so-called “knowledge sharing”).

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In addition to the dissemination and communication initiatives, during 2022 the simulated phishing campaigns
targeted toward the entire Enel population continued, inorder to train employees to recognize malicious e-mails.
Following the results obtained by the phishing campaigns,
specific initiatives were created to increase employee sensitivity and awareness (for example, specific infographics,
instructions and guidelines were shared with those who
were not able to recognize a phishing e-mail).

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Appendix

The Open Tech Journey project also continued to provide
access to training courses focused on technological topics, promoting internal skills to spread awareness of strategic topics and manage upskilling and reskilling needs. This
was the background to the creation of the Cyber ​​School,
which delivered seven courses on the main cyber security
topics. All the courses were engineered and made available
to the entire Enel population in e-learning mode, in orderto reach multi-specialistic skills in the various companiesof the Group.

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Circular economy

Material topics (I level)

Doublemateriality

Plan

SDG

• Innovation, circular
economy and digitaltransformation

Growth accelerators• Circular economy

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG
8Activities

2022 results

Circularity improvement

56%

Progress

78% in 2025
92% in 2030

12

Circularity along theentire value chain

2023-2025 targets

Tag
I
E

13
8
12

Economic CirculAbility (EBITDA/
resource consumption)

N.A.

N.A.

Valorization of obsolete spare parts,
equipment and scrap coming fromthe demolition of thermal power
plants and promoting the adoptionof circular business models

22 million euros of revenues
generated by Reselling andRecycling activities

13
7
9
12
13

x1.5 in 2025 compared tothe baseline year 2020
x2 in 2030 compared to thebaseline year 2020
53 million euros of revenues
generated from Reselling andRecycling activities in 2024(1)

I
E

I
E

Read more
The Circularity improvement KPI measures the reduction in the consumption of fueland materials of the Group's power fleet throughout their life cycle, compared to 2015.
The “Economic CirculAbility©” KPI considers the Group’s overall EBITDA (euros) andcompares it with the amount of resources consumed, both fuel and raw materials, by
the different business activities (tons).
The target on the Valorization of obsolete of spare parts, equipment and scrap comingfrom the demolition of thermal power plants involves the adoption of several initiatives,
including the Spare parts and equipment New Life project, which aims to give new life tocomponents in the warehouses, equipment of decommissioned coal-fired power plants
and obsolete materials from all the other thermal power plants, allowing environmental
and economic benefits.

(1)

Reselling and Recycling activities carried out on the basis of the progress of demolition work and scrap market value.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable

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SDG

Activities

2022 results

12

Definition and application of suitableindustrial and financial circularity
metrics to support and enhance
circular economy activities, engaging
the respective business areas

A new KPI Economic
CirculAbility© has beendeveloped, measuring circularity
at Group level by comparing
the value generated (€ EBITDA)
against the consumption of
resources (tons) needed togenerate it

Progress4

Our performance2023-2025 targets

5

Appendix

Tag
IE

The target is considered
outdated as it has been achieved
12

Strategic circular economy projects
to reduce raw materials consumption

13 projects
Among the main initiatives
underway:
new technologies for storage(e.g. gravitational storage)
new materials for wind power
generation (e.g. wood-basedmaterials for towers)
Wind New Life for wind turbine
bladesbattery lifetime extension
circular meter scale-up

I
E

Circularity along theentire value chain

•
•
•
•
•

The target is considered
outdated on the basis of a new
methodological approach(2)1217Strengthening of partnerships
and collaborations with cities andother public entities (e.g. regions,metropolitan areas, etc.) on circular
economy15 cities/public entities
involved in partnerships andcollaborations in Argentina,
Chile, Italy, Spain, North
America and PeruE
GThe target is considered
outdated on the basis of a new
methodological approach(2)12Engagement of external actors topromote the dissemination andknowledge of the circular economy
through physical/virtual events on
the topic, training activities and bestpractice sharing

2,000 external participants
engaged through webinars,
workshops and other eventson circular economy

I
ES

The target is considered
outdated on the basis of a new
methodological approach(2)(2) In our path to measure circularity at the aggregate Group level, the focus will be on measuring and identifying the overall impacts of circular activities withrespect to reducing resource consumption, with KPIs such as Economic CirculAbility.

Circular economy﻿

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Circular economy

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Circular economy
3-3

301-2

For Enel, the circular economy is a strategic
lever to support the decarbonization
strategy and the path towards a fairand inclusive transition, with the aim ofprogressively applying it to the entire
business model in order to make it
increasingly sustainable, resilient andcompetitive.
The achievement of increasingly ambitious
decarbonization targets in fact requires
a profound transformation of the energy
system, while at the same time entailing a
growing need for raw materials with partly
different requirements to those of thepre-existing energy system: to achieve the
IEA’s Net-Zero Emission (NZE) scenario, it isestimated that minerals will be extracted up
to six times more by 2050 than today.
In our energy transition process, we havefrom the outset adopted an integrated
approach that includes, on the one hand,the development of energy generation fromrenewable sources, and the consequent
abandonment of fossil fuels, and on theother hand, the adoption of a circularapproach in the management of assets forthe generation and distribution of electricity,
both those at the end of their life and thosein operation, thus embarking on a path to
reduce the emissions associated with both
power generation from fossil fuels and theuse of non-renewable materials.
It is a circular model that allows us to limit
our dependence on raw materials as muchas possible, while ensuring the following
types of competitiveness and sustainability:• environmental, by reducing theconsumption of new resources and waste
produced at the end of the cycle;• social, thanks to the rethinking of thebusiness model, based on the leveraging
of products and services and as such
more tied to specific and local skills andprofessional resources and less tied toautomation;• economic, thanks to the progressive reduction of procurement costs and thedefinition of new product-as-a-service
models, thus reducing procurement risks
and related uncertainties related to supply
chains and external shocks.

56 %CIRCULARITY
IMPROVEMENT
INDEX

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Rethinking the raw materials cycle
for a fair transition
In 2020, Enel launched a working group involving all areasof the Company to develop and update the raw materials
strategy, with particular reference to so-called critical raw
materials,(1) identify priority areas on which to act and implement solutions to manage the associated impacts and risks.
In particular, the Working Group focuses on specific focuses, starting with the identification of raw material requirements for the Group’s various activities, the identificationof environmental and social impacts along the entire value chain, with particular reference to respect for humanrights, the assessment of geopolitical risks (with potential
disruptions to supply chains) and economic risks.
The goal is the identification of priority areas of intervention in order to evaluate new solutions to mitigate risks andimpacts related to materials and related technologies that
use them, as well as the definition of specific targets foreach raw materials supply chain and related action plan,leveraging the innovation ecosystem (co-innovation with
suppliers, start-ups, etc.), prioritization ranking of raw
materials and ad hoc plans for the most relevant ones,
geopolitical, commodities, environmental and social risk
reduction strategies on new technologies and businessmodels. All these focus areas are carried out by comparing
and examining the best practices of each industrial sector,
monitoring and analyzing the market trends associatedwith raw materials for key technological sectors (wind, solar, batteries, networks, etc.) and by collaborating regularly
with all relevant stakeholders.

Enel’s circular approach
The Group’s circular vision is based on five pillars, which
define the reference business models for the entire lifecycle of our assets and materials, and which act throughthree main levers: circular design, starting with the choiceof input materials and design oriented towards life extension, up to the maximization of the use factor of the asset(1)

and its value at the end of its life; how the asset is used (circular use), which includes life extension, the use of sharing
platforms, the product as a service; and closing cycles (value recovery), through remanufacturing and recycling andreuse of recovered materials as a new circular input.

For example, according to the list in the “European Critical Raw Materials Act” 2023, raw materials such as lithium and phosphorus.

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New life cycles

Circular inputs

VERY
CO
E
R

UL

AR

D

IG
N

VA
LU
E

C I RC

Production and use model
based on renewable inputs
or previous life cycles (reuse
and recycling).

Shared platforms
Systems for joint
management by
multiple users of
products, goods orskills.

AppendixES

Any solution to preserve
the value of an asset
at the end of a life
cycle through reuse,
regeneration, upcycling or
recycling, in sinergy withthe other pillars.

5

Useful life extension
CIR

CULAR USE

Approach to the design andmanagement of an asset or
product in order to extend its
useful life, e.g. through modular
design, facilitated reparability,or predictive maintenance.

Product asa serviceBusiness model where the customer
purchases a service for a specific time,
while the company retains ownershipof the product, maximising its use
factor and useful life.

The implementation of the Group’s circular approach isbased on the following main aspects:• design and non-waste management: choices made atthe design stage strongly influence subsequent stages
by enabling efficient management of the asset during
its useful life and maximizing its recoverable value at theend of its life;• application in the core business: for change to be meaningful, it must first take place in the core businesses inorder to make the Company circular;• economic sustainability: for solutions to be developedon an industrial scale, they must also be economicallycompetitive;• measurement: only a quantitative approach linked tophysical and economic indicators and challenging targets makes it possible to measure the effectiveness of
the actions
implemented
and toguide business choices;2
Bilanciodi Sostenibilità
2022• collaboration: in order to implement a circular solution,
collaboration both within one’s own sector, with suppliers, customers and all players in the value chain, and withother sectors, as well as collaboration with the innovation ecosystem (start-ups, universities, etc.) and institutions, is crucial;• innovation: innovation plays a fundamental role, not only
technological innovation, but also innovation in businessmodels, regulations, and modes of collaboration, for therealization of a new economic model. Innovative materials, artificial intelligence to enable predictive maintenance and the use of additive manufacturing to repair
plant components are some of the technologies we areusing to make our assets more circular. Start-ups, with
their contribution of innovation and technology, play an
indispensable driving role in the circular model (see thechapter “Innovation”).

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Main circularity projects

VALUE RECOVERYCIRCULAR USE

CIRCULAR DESIGN

We are developing several projects mainly related to new
assets (wind, solar, BESS, and grid development) and upcoming products/services for end customers, with the aimof reducing the consumption of raw materials, especiallycritical ones.
The initiatives focus on three of the five pillars of the model:• Circular design – use of circular inputs
Several solutions to reduce raw material consumption
use circular inputs i.e., from previous life cycles (use ofrecycled plastic for smart meters and charging infrastructure for electric vehicles or recycled aluminumfor street lighting systems) or by identifying new solutions that use alternative and more sustainable materials (wooden towers for wind turbines, innovative windblades made of fabric, or hybrid towers in which the baseand first sections are replaced by a concrete pedestal
that will be made directly on site, significantly reducing
the use of steel). Another project in this sense is thepartnership with Vulcan Energy to develop projects forgeothermal lithium extraction.
• Circular use – useful life extension
Reducing the need for new assets also reduces theassociated material requirements. Among the various
initiatives implemented are the application of machinelearning techniques for predictive maintenance in pow-

296

Circular
inputsHere are some examples of projects implemented:

Storage

Wind

Solar

Grid

Customer solutions

Geothermal lithium(Vulcan Energy)Wind tower withwooden materials(3SUN)

Solar panels withrecycled plastic

Circular Smart
Meter withrecycled plastic

Recycled plastic for EV Materials
charging stations
passport

BESS – New
technologies forstorage Thermal
Energy Storage

Textile materials
for wind turbine
bladesCell with copper
replacing the silver(3SUN)New storage
technologies forstorage: gravitational
storage

Useful life
extension

er generation and distribution plants or advanced repair
technologies such as additive manufacturing.
• Value recovery – identification of new life cycles
When an asset reaches the end of its useful life, theobjective is to identify new life cycles through solutions
that maximize the amount of recoverable materials inorder to reinsert them into the production cycle. All theGroup’s different Business Lines are actively involved in
major asset recycling projects: from PV with the Photorama project, which aims to recycle 95% of materials, tosale for scrap metal recovery, to the recycling of power line poles, reusing the recovered material for newpoles, to the construction in Spain of a battery recycling
plant with a target capacity of 8.000 tons/year, up to acircular management of the Group’s decommissioned
IT assets by giving them to employees, selling them tothird parties or donating them for social purposes (seethe chapter “Digitalization”). In addition, we are evaluating new models for the enhancement of secondary raw
materials: for example, in Spain we are testing collaboration with plants authorized to process and recover scrap
metal, in order to obtain secondary raw materials to be
fed into new production cycles.

Hybrid wind towers

Cross

Recycled aluminum for Sustainability K
public lighting systems for procurement

Redesign of gridasset

2nd life Battery Melilla(Spain)Predictive
maintenance

Project PIONEER(Italy)Repair throughadditive
manufacturing

Predicting failures
software (IPCEI)
EV batteries
recycling

Wind turbine
blades recycling(Wind New Life)

New life
cyclesSolar panel
recycling(Photorama)

Grid mining

Sale of naturalgas
New models forthe enhancementof secondary raw
materials from
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Circular
inputsCircular procurement
Enel’s Circular Procurement strategy aims to improve thecircularity of purchased products and services through thedefinition of metrics (such as the EPD system, Environmental Product Declaration) to assess the whole-life environmental impacts related to the material and energy flowsof the strategic product categories purchased, co-innovation with suppliers, and the use of tender requirements
and rewarding factors to incentivize suppliers to offer in-5creasingly circular products. In addition, the Enel Group isdeveloping tools and strategies to improve the tracking ofmaterials along the value chain and to push suppliers tomake efficient use of materials by focusing on recycling
and recovery at the end of life and to increase transparency. See the chapter “Sustainable supply chain” for moredetails.

Circular
inputsTechnological innovation in solar panel production (3SUN)
The new HJT (Hetero Junction Technology) solar modulethat will be produced in 2024 in the 3SUN Gigafactory in
Catania, Italy, is a latest-generation double-sided photovoltaic module that guarantees less degradation of photovoltaic modules and extends their service life to more than
30 years. Due to its high efficiency (around 24%) resulting
from the possibility of using larger and thinner wafers, itwill already use a reduced amount of silicon for peak power. In addition, as a further evolution, a new HJT Tandem
panel is being developed that will significantly exceed thestate of the art in photovoltaic cells in terms of efficiency,
reaching more than 30%; this will increase the efficiency
of a conventional module by 15-20% and allow more energy to be generated, with the same number of modules
installed, thus requiring less material such as polysilicon.
In addition, technologies are being developed to introduce
recycled materials into the production process (such as
replacing panel glass with recycled plastic) and the possibility of replacing the silver (a material with a high environmental impact used in the metallization process of the cell)with copper is being evaluated.

Andrea Tecci
Ecosystem and Circular Economy CC - EGP&TGx“At 3SUN we are working to increasingly improve thecircularity of the PV module and minimize the consumptionof raw materials, working on its entire life cycle: using
circular materials, improving its productivity, extending its
service life and finally maximizing the quantity of material
that can be recovered at the end of its service life. The
aim of all of this is to make this technology increasingly
sustainable and competitive.”

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Circular
inputsBESS – New technologies for storage
Again with the aim of promoting the development of new,more sustainable materials and processes, a first innovative commercial alternative to chemical storage based on
gravity technology will be installed. The plant will be commissioned in the United States in 2024. Specifically, thestorage system will use excess electricity from the grid tomove large blocks of cement material.
Another alternative solution that Enel installed in Italy atthe end of 2022 is Thermal Energy Storage (TES) basedon solid material and using rocks with high thermal capacity to retain thermal energy from the process fluid. Using
common fragmented rocks, the TES system has the capacity to store up to 24 MWh of clean heat at a temperature of around 500 °C for at least 5 hours.
All materials used (rocks, pipes and casings) are to be considered environmentally sustainable as there are no chemical compounds or critical or flammable materials.

Circular
inputsRedesign of grid asset
Several initiatives are underway within Enel Grids, which
also leverage an innovation ecosystem to improve the circularity of different assets through design and the use of
new materials.
The search for solutions with a lower environmental impact
for distribution poles has also led Enel Grids to explore alternative materials to conventional ones; in addition to theuse of recycled aggregates for the manufacture of newpoles, an analysis is underway for the use of wood poles
free of toxic impregnating agents with a design oriented
towards total recyclability at the end of their life. Alternative
solutions to conventional construction methods are also
being tested, with 3D printing and for pile foundations, inorder to reduce installation times and material consumption (see the chapter “Innovation”).
Also thanks to the Open Innovability® platform, challenges

Circular EV charging stations
We have been working for several years on the products inthe Enel X Way portfolio by revising their design to improvetheir circularity. In fact, our main AC (alternating current)
charging products use recycled polycarbonate as theirmain structural material (100% for JuiceBoxes and 75% for
JuicePoles). For the JuicePole, AC public charging stations

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were launched in 2022 to gather a new concept for thedesign of primary and secondary substations to promote
their harmonious landscaping, the adoption of circularsolutions in terms of both the materials used and thesharing of space with the community.
Circular Smart Meter – Closed loop recycling
From 2020, production of the new Circular Smart Meterbegan through a circular model and a pathway to redesign
the value chain of the electronic meter, using material fromdiscarded meters to make the new ones. About 2 million
circular meters were produced in 2022. 48% by weight of
the new meters are reclaimed materials: end-of-life recyclability (plastic, steel and other metals) is estimated at 79%
by weight. Over its lifetime (15 years), each circular smart
meter saves 7 kg of CO2 and 1.1 kg of virgin material.
Circular
inputsExtendinguseful life

installed in 2022 alone amounted to 3,000 new points. The
use of materials was also optimized, reducing the overall
weight of the product by around 32%. Another example ofa circular solution we have implemented is the recovery
through remanufacturing of end-of-life components tobe reused as spare parts.

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Useful life extension of batteries
Enel is developing several solutions to extend the life ofbatteries, including the development by Enel X Enel X in
the framework of an IPCEI project for artificial intelligence
tools for predicting failures, anomalies and for modellingthe degradation of lithium-ion batteries in order to extend
their life and increase their reliability, optimizing operating
and maintenance activity (project completion expectedby 2023). A further strategy to extend the life of batter-5

Appendix

Extendinguseful life
ies from the automotive sector is to reuse them “secondlife” solutions such as stationary storage systems.. Enel has
developed a first solution of this type in Melilla (4 MW/1.7
MWh storage plant), realized through the reuse of about
90 batteries, and is completing another one with a nominal capacity of 2.5/10 MWh as part of the PIONEER (airPort
sustaInability secONd lifE battEry stoRage) project with
Aeroporti di Roma.

“Wind New Life” project

New life
cyclesThe project proposes to develop a circular value chain to manage the end-of-life of wind turbine blades, through the development of two plants in Italy and Spain that will provide for thecollection of the blades, their processing for productionof second raw material and the reuse of the same for the
production of high value-added components (building materials, sanitary and furnishing products, flooring, cabinets
and electrical conduits). The Spanish plant, operational from2025, will handle around 8,000 tons of material per year. In
Italy, the aim is to manage around 3,000 of them by the second half of 2025.

New life
cyclesGrid Mining
With the aim of maximizing the contribution to decarbonization along the entire value chain, a Grid Mining & Zero
Waste model has also been defined, which, by considering
grid assets as a mine to be drawn from at the end of life, allows the recovery and market leveraging of precious metals and other materials and devices from obsolete distribution infrastructures. In this regard, to ensure a complete
tracking of the materials contained in the network assets
from the input phase of the value chain, we have developed and digitalized in our systems the “Digital ProductPassport” (DPP) that allows us to have a clear and detailed
picture of the different types and quantities of materials inuse. The DPP allows not only for monitoring any materials
considered critical, for which it might be useful to evaluate
an alternative, but also for defining ex ante end-of-life reuse assumptions. In this regard, the End of Life Dashboard
was developed as part of the Grid Mining strategy. Startingwith reverse logistics information on the type and number of decommissioned grid assets, in close connection
with the DPP, it gives us information on the decommissioned materials, their quantity and type, and the possible
CO2 savings related to their reuse as “second raw mate-rial”. Having an integrated and digitalized tracking systemalong the entire value chain is the driving force toward theambition to open our “mine” to the outside world as well,making it available to other companies or different sectors
in order to involve their respective production chains andfeed new markets for raw and secondary materials, promoting the development of the area and the saving of virgin materials, and creating new job opportunities related
to waste material recovery initiatives while minimizing environmental impacts.
The recycling of photovoltaic panels (PV Recycling)
As far as the end-of-life recovery of photovoltaic panels isconcerned, Enel is collaborating in the Photorama project(European Horizon 2020 program), which aims to automate the process of dismantling solar panels and to identify a handling process suitable for the recovery of valuable
materials (purity greater than 99.9%), reaching a recycling
rate of 95%. This solution will improve the recovery process
in terms of both recoverable quantity and quality of therecovered material.

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Circular cities and territories
Cities generate around 70% of global CO2 emissions, accounting for over 60% of resource use and produce 50%of global waste. Numbers are destined to grow, according
to city population estimates. It is also necessary to maximize the effectiveness of interventions in the main areasof urban life, prioritizing each sector: renewable energy,

pedestrianization, public and private electrification andpromotion of flexible working models. For construction,
the focus is on the development of fuel-efficient solutions
and the use of materials that emit less CO2. Enel has contributed to the development of this theme at the level ofboth vision and definition(2) and business solutions.

Declaration of the Circular Cities
of Latin America and the Caribbean
In October 2021, the “Declaration of Circular Cities of Latin
America and the Caribbean” was launched at the Italy-Latin America and Caribbean Conference, during the event
organized by Enel on Circular Cities. The initiative, realized
by CEPAL (Economic Commission for Latin America andthe Caribbean) and IILA (International Italo-Latin American
Organization) with the aim of accelerating the development of the topic in Latin America through the definition

Sustainableinfrastructure
In the grids sector, Enel has adopted a “Sustainable
by design” model: designing an asset with sustainable
materials, minimizing emissions and consumption during
construction, and favoring life extension, without excludingof a common vision, clear objectives and the sharing ofbest practices, aims to stimulate the adhesion of cities thatdesire to accelerate the transition towards a circular andmore sustainable urban model. At present, the Declaration
has already been signed by 8 cities on the Latin American
continent (including Buenos Aires, Bogotà, Mexico City,
Lima, Santiago) enhancing the centrality of the circular approach in local development policies.

recovery at the end of life. The José Granda Primary Cabinin Lima, Peru, is one of the first construction sites where
the “Sustainable by Design” approach was adopted. For its
implementation, several circular solutions were adopted tominimize waste and maximize material recovery: 930m3
of soil was reused and 520m3 of demolition residues
recycled.

“Eco Enel – Brasile”
The Eco Enel project, launched in 2007, favors discounts
on the electricity bill for customers who sort their waste
and send it to specific collection and recycling points.
The initiative was started in the State of Ceará and later
extended to the States of Rio de Janeiro, Goiás and São
Paulo. In 2015, it was included in the United Nations
Development program (UNDP) report “Inclusive Markets
in Brazil: Challenges and Opportunities of the Business
Ecosystem” as one of the country’s 19 best practices. To
date, the program has collected over 70,000 tons of waste
and benefited around 300,000 customers annually.

(2)

Enel has published four papers on the topic of circular cities, helping to develop the concept and addressing issues such as strategy development, reference
models and governance. Below is the link to the latest edition: https://www.enel.com/content/dam/enel-com/documenti/media/circular-cities_october2021.pdf.

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PPE recycling
The first phase of a project to provide a more circular endof-life for the Personal Protective Equipment of our

3

Materiality analysis

4

Our performance5

Appendix

colleagues started in Italy in 2022. The material collected
will be used for the manufacture of sound-absorbing
panels and anti-trauma floors for use in our Operational
Training Centers, but also in city playgrounds.

Governance, metrics and targets of the circular economy
To ensure the implementation of the strategy and theorganic nature of the circular transition, specific units
have been created in Enel to support the Group’s circular economy model. In particular, these areas are present
in both the different Business Lines and in the different countries and regions, under the coordination of a
Holding unit, so as to ensure a coordinated approach tostrategies, share knowledge and experience, and foster
the integration of circular economy principles into daily
choices and activities. In particular, the Business Lines are
redesigning or developing business models with a circular approach, while the units at country level are providing
support locally to create new business opportunities andrelated sustainability initiatives in collaboration with thelocal ecosystem. Over the past year, the circular economy
has been integrated with that of sustainability initiatives inorder to ensure its strong synergy social issues as well as

Measuring the circularity of
products for our customers
At Enel X, two different tools for measuring the circularityof customers have been developed to support them ona path to improvement: the Circular Economy Product
Score, to measure the circularity of products in theportfolio, and the Circular Economy Report, to measure
the circularity of customer products or sites at corporate
level. The metrics adopted were reviewed and improved
with the support of various partners such as ICMQand CESI to develop certification schemes subject toaccreditation by Accredia:
Circular CertificationTM – Corporate (accredited in2022): consists of the analysis of the qualitative level ofmaturity and diffusion of circular economy principles in
the corporate sphere, along the entire value chain, e.g.
by assessing the circularity of various elements, suchto use the circular economy not only as a business theme
but also as a model for fostering local development.
In conjunction with the launch of its Circular Economy
activities in 2015, Enel placed strong emphasis on measuring circularity. In the early stages, and in the absenceof international reference methodologies covering theentire value chain, the Company developed its own circularity measurement model, the CirculAbility Model©.
Based on the five pillars of the circular economy, thismodel represents the Group’s vision on the subject matter, as it considers materials and energy in an integrated manner throughout all phases of the life of the asset.
From this model, which represents the Group’s conceptual framework, various indicators and applications havesubsequently been developed in the various divisions,starting with supplier management and concluding withend customers.

as production inputs, design, procurement, corporate
approach to the circular economy, etc.
Circular CertificationTM – Product (under accreditation):developed by Enel X and ICMQ SpA to measure the levelof product circularity.(3) It is based on the quantification of
the circularity of material and energy contributions to the
manufacture of products.
Circular CertificationTM – Energy Site (accredited in2022): consists of a quantitative analysis applied to a
specific customer site (such as offices, warehouse, etc.)
analyzing electrical and thermal energy sources, in termsof consumption and generation, energy use efficiency,
energy management practices, etc.
To maximize the spread of these certifications, in
December 2021 Enel X founded the CircularEvolution
association with ICMQ and CESI, with the aim ofsupporting the most virtuous organizations in
implementing circular models.

(3) The scheme refers to the International Standards ISO 14040 and ISO 14044 that describe how to apply life cycle analysis to products and services (Life Cycle
Assessment or LCA).

Circular economy

301

Enel has always been among the pioneering companies
when it comes to identifying and adopting quantitative indicators at the Group level, indicators that can clearly represent the transition process towards circularity in termsof decoupling its business activities and related resource
consumption. On Capital Markets Day in 2020, Enel madepublic for the first time a KPI related to its electricity gen-

Enel - first Company in the world
to launch a circularity index
with the aim of doubling itby 2030
We have developed a new indicator, the “Economic
CirculAbility©”, which takes the Group’s overall EBITDA(in euros) and compares it with the amount of resources

eration activities that measures the consumption of raw
materials throughout the life of power plants, in relation
to the energy generated. With respect to this KPI, Enelis committed to a significant reduction in resource consumption with the goal of improving its circularity by 92%
by 2030 compared to 2015.

consumed, both fuel and raw materials, throughout thevalue chain by the different business activities (expressedin tons). Enel presented this new KPI as part of the World
Economic Forum 2023 in Davos, while committing todoubling this index by 2030 compared to 2020, thus
halving the amount of resources consumed compared to
EBITDA generated. Enel thus becomes the first Company
in the world to adopt such a circularity indicator, and to
set itself such an ambitious goal.

The ecosystem of circularity: the development of a “circular” culture
and new ways of collaboration
As part of our focus on the circular economy, in addition
to business-related activities, we also focused on dissemination and knowledge, organizing specific webinars (5 inall) on the circular economy in 2022, each focusing on adifferent aspect such as the energy transition, new technologies and decarbonization, social impacts, biodiversity and communication. The sessions were attended byinstitutions and organizations strongly committed to thecircular economy and there were over 1,500 internal andexternal participants.
The full development of a circular business also requiresa rethinking of the ways in which it relates to the outside
world, with a reassessment of the usual negotiation andcontractual models and some of the individuals typical of alegal system hitherto dependent on an economically linear
world. With the aim of identifying regulatory or negotiatedbarriers to the circularity of the Group’s activities, in 2021,
and in conjunction with the legal and regulatory functions,a careful analysis of regulations and contracts was undertaken to identify innovative contractual solutions and standards to support circular business models and possibly

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Sustainability Report 2022

formulate regulatory proposals in different countries that
could promote the development of the circular economy.
The redesign of the economic model requires broad anddeep change and continuous engagement with stakeholders, through the creation of an extended ecosystem(suppliers, customers, institutions, etc.) that is not limited
to one’s own specific sector, but progressively includes
counterparts from new sectors and areas with which synergies can be developed.
Also crucial is the development and sharing of knowledge
and experience through as wide a network as possible,
since the circular economy is a fundamentally new topic
with vast unexplored potential.
To this end, Enel is part of a number of networks to which it
actively contributes, including the European Raw Material
Alliance (ERMA), the European Battery Alliance, the Global
Battery Alliance, the Global Alliance for Sustainable Energy, Open Power Grids, the Capital Equipment Coalition,
the Alliance for the Circular Economy and the Coalición deEconomía Circular de América Latina y el Caribe.

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Alliance for
the Circular Economy
The Alliance for the Circular Economy is the joint initiativeof 12 Italian companies who aim to promote circularity
in business strategies. The Alliance was established in2017 with the signing of the Manifesto by “Made in Italy”
companies, leaders in various manufacturing sectors.
The Alliance intends to spearhead an overall evolutionof the manufacturing context in a circular perspectivethat enhances the peculiarities of products “Madein Italy”, focusing on innovation, favoring the sharingof experiences and best practices and promoting a
constant comparison with the entire ecosystem of
stakeholders. The companies participating in the Allianceare interpreters of a transformative economy, of an
innovative way of rethinking the entire production cycle,
the use of resources and business models. The following
are members of the Alliance: A2A, Aquafil, Cassa Depositi
e Prestiti, CIRFOOD, Costa Crociere, Enel, Gruppo Hera,
Intesa Sanpaolo, Gruppo Ferrovie dello Stato, Gruppo

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4

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Appendix

Maire Tecnimont, Salvatore Ferragamo and Touring Club.
During 2022, the Alliance published two guidelines
documents on circular declarations and disclosuresand on circular procurement. The first document
developed a vademecum for the implementation ofcommunication policies that adhere to the principles
shared by the companies in the Alliance. The document
includes a common definition of circular economy anda set of key principles that companies must consider
when making circular statements and disclosures. The
second document includes a set of criteria and tools
aimed at including circularity criteria in procurement
processes, a theoretical and organizational framework
for implementing circular procurement processes, and acommon questionnaire for supplier engagement.
The incorporation of these principles and criteria into theactivities of the Alliance companies is intended to lead toa more coherent implementation of the circular economy
concept in the Italian business context, and may also set
an example for small and medium-sized companies thatwish to adopt them.

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303

Conservation of natural capital

Material topics (I level)

Doublemateriality

Plan

SDG

• Conservation of
ecosystems andenvironmental
management

NatureEmissions

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

Activities

2022 results

12

Reduction of specific SO2 emissions(1)2023-2025 targets

Tag-78% vs 2017

• -81% in 2025 compared toE-47% vs 2017

• -85% in 2030 compared to 2017
• -47% in 2025 compared to

12

Reduction of specific NOx emissions

E-54% vs 2017

• -70% in 2030 compared to 2017
• -54% in 2025 compared to

12

Reduction of specific dust emissions

E

Reduction of specific freshwater
withdrawal(1)-49% vs 2017

• -60% in 2030 compared to 2017
• -56% in 2025 compared to

E

Reduction of specific waterrequirement-47% vs 201712

Reduction of waste products(1)-49% vs 201712

Overcompliance on waste
management and end-of-life

N.A.

12

“ZERO Plastic” project - Reductionof single-use plastics at Enel Group
sites

Reducing single-use plastics(office scope), compared to the
new structure imposed by the
pandemic, in the main countriesof operation

Water
management

6
12
6

Waste
management

12

(1)

(1)

Progress

2017

2017

2017

N.A.

2017

• -65% in 2030 compared to 2017
Target outdated as a newtarget on specific freshwater
withdrawal has been defined

N.A.

• Enel sites in Italy : -85%
• Enel sites in Spain: -85%

-55% in 2030 compared to 2017

E

Promoting and disseminating
good practices on waste
management and end-of-life

E

Reduction of single-use plastics(office scope), compared to
new structure imposed by the
pandemicE• Enel sites in Italy : -85% in 2025
• Enel sites in Spain: -85% in 2025

(2)

(2)

(1) The values of the 2022 results, targets and 2017 baseline have been recalculated net of assets disposed as at December 31, 2022.
(2) Compared to the volume of single-use plastics used in 2018. Reduction calculated based on office occupancy and pandemic contingencies.
Does not include offices with fewer than 20 employees.

Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2304

Bilancio di Sostenibilità
Sustainability
Report 2022
2022

Achieved

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SDG

Activities

2022 results

14

Biodiversity conservation• Definition of a Group protocol

Progress

4

5

Appendix2023-2025 targets

Tag• Beginning No Net Lossto verify the target on No Net
Loss for new projects andapplications on pilot projects

15

Our performance

implementation on selected
projects in high importancebiodiversity areas starting from2025

• Definition of a catalog ofI
E• No Net Loss of biodiversity for

Nature Based Solutions forurban biodiversity projects
and applications

new infrastructure by 2030

• No Net Deforestation by 2030
• No Go in UNESCO areas• Nature-related risk/opportunity(3)

Minimizing the impact of Enelassets on habitats and species
included on the Red List of
the International Union forConservation of Nature (IUCN):
improvement of company
processes for risk assessment
and biodiversity managementon plants and assets (100%annual progress)– Group Biodiversity
Guidelines implemented byEnel Grids and Enel X.
– high level risk andopportunity analisys at
Group level

analysis: incorporate theassessment of nature-related risks
and opportunities into all businessactivities to align the strategy andrisk management processes

Biodiversity•

E
G• Nature’s Footprint - Assessment

metrics and restoration plan:assessment of 100% relevant
assets and revision of nature's
restoration Plan on infrastructure• Biodiversity value awarenessand new partnerships: broaden
and consolidate global andlocal scientific and industrial
partnership to support thenature positive approach and its
implementation• definition of Group indicatorsand implementation of thebiodiversity performancemonitoring process:– 100% revised KPIs

• internal biodiversity

protection awarenessinitiatives to reach 100%of the Enel population andincrease the partnershipframework and stakeholder
engagement:– awareness campaign via
webinars and videos to all
Enel people; 60 global andlocal partnerships, including
TNFD, Science Based
Target Network, Businessfor Nature, membership of
CSR Europe's Biodiversity &Industry platform, WBCSD,
TNF, World Economic
Forum, Legambiente

Environmental
governance

14
15

14
15

Environment Extra Checking on Site
(ECoS)

93 Environment ECoS carriedout

Environment Contractor Assessment(CA)

300 Environment
Contractor Assessments
carried out

72 Environment ECoS in 2025

E
S

E
S

Target outdated as theContractor Assessment process
is an established operational
practice on the whole perimeter(3) In any case, Enel commits to comply to service obligation with the best adequate and feasible solutions.

Conservation of natural capital

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3

Conservationof natural capital

THE GIAL

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Appendix0.07 g/kWh
SPECIFIC
EMISSIONS OF SO2
0.07 g/kWh
in 20210.32 g/kWh
SPECIFIC
EMISSIONS OF NOX
0.35 g/kWh
in 2021-8.6%

0.005 g/kWh
SPECIFIC
EMISSIONSOF DUST
0.005 g/kWh
in 2021

0.23 l/kWheq

TOTAL SPECIFICFRESHWATER
WITHDRAWAL
0.25 l/kWheq
in 2021-8.0%

200
BIODIVERSITYPROJECTS IN
OPERATIONAL
SITES
183 projects
in 2021Natural capital conservation
Protecting natural capital and combatingclimate change are strategic factors andintegrated into the planning, operation anddevelopment of our activities. Being anenergy company, our operations depend on
natural resources, but at the same time they
have an impact on them. For this reason, we
integrate risk and opportunity assessments
into our decision-making processes and ourGroup governance, and we define specifictargets for reducing impacts on nature,
restoring habitats and sharing the benefitsof ecosystem services with the communities
with which we interact.
Recent years have marked a significant
increase in global awareness of the needto strengthen the commitment to not only
limiting climate change, but also tackling
the loss of biodiversity and defining aprocess for restoring it. This commitment
was relaunched by the UN Convention on
Biological Diversity (CBD), held at COP
15 in December in Montreal, Canada. The
conference resulted in the release of theKunming-Montreal Global Biodiversity
Framework, which defines strategic
objectives for reducing biodiversity loss,
restoring ecosystems and protecting therights of indigenous peoples and local
communities. The plan includes concretemeasures to halt and reverse the loss ofnature, including protecting 30% of theplanet and restoring 30% of degradedecosystems by 2030. Enel actively
participated in the COP 15 business forums
and supported the approval of the target
to require large companies to assess andreport on risks, dependencies and impacts
on biodiversity.
At European level, the Commission publishedthe Biodiversity Strategy in 2020,(1) which
involves the introduction of a series oftargets that are binding on Member States;
subsequently in 2022, the consultation on
the proposed Nature Restoration Law waslaunched. The proposal aims to introduce
area-based restoration measures for 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 toformulate specific national plans. The
proposal also includes specific objectives forurban ecosystems, agricultural and forest
ecosystems. Enel is actively supporting
the Commission’s activities, promoting
the synergy between the restoration of
degraded areas and the development of
renewable energies, as well as stimulating
the participation of stakeholders. We havealso proactively integrated EU principles
into our Environmental(2) and Biodiversity(3)Policies in order to continuously improve themanagement of our assets and services.

+9.3%

9,452 haOF HABITATRESTORED
9,092 ha in 2021
+3.9%

(1)

COMM (2020) 380 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
(2) Enel has had a Group environmental policy in place since 1996, updated in 2018 and again in 2022. The Enel Group’s
environmental policy covers the entire 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; (v) every key business partner (including partners
related to non-managed operations, joint ventures, outsourcing or third-party producers); (vi) every supplier, including
service and contractor suppliers; (vii) all due diligence and Merger&Acquisition processes.
(3) In 2015, Enel published the Group’s biodiversity policy, which was updated in 2023 following the release of the Kunming-Montreal Global Biodiversity Framework.

Conservation of natural capital307

During 2022, the European Commission proceeded toadopt the action plan towards zero pollution for air, waterand soil (“Towards a Zero Pollution Ambition for air, water and soil – building a Healthier Planet for Healthy People”(4)). The main lines of action include:• Air quality – In 2022, the Commission launched the proposal to revise the directives on ambient air quality, withthe aim of improving alignment between EU air quality
standards and the new guidelines of the WHO (World
Health Organization), with particular attention to urban
areas, where the majority of the population lives. 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, a proposal to revise the Industrial
Emissions Directive was published in 2022. Enel supports the review process, in particular for large combustion plants, by committing over the years to the progressive adaptation of power plants powered by fossil
fuels thanks to the introduction of technologies with low
emissions of polluting substances. Furthermore, Enel
actively supports the development of new technologies,
such as electrification based on renewable energy, tosupport other sectors and uses of energy, such as thetransport sector or heating and cooling in buildings.

• Soil strategy – In November 2021, the Commission

launched an EU soil strategy for 2030, which sets out
measures to restore degraded soils by 2050, setting medium- and long-term objectives for 2030 and 2050 respectively. The strategy is directly linked to that of biodiversity and climate adaptation, also establishing targets
relating to the restoration of degraded land, the remediation of contaminated sites and the reduction of soil use.
In this context, 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.
Also, through the Futur-e project, Enel is actively pursuing the reuse of areas within its industrial scope. Enel’s
Futur-e project is one of the first examples on a global scale of the redevelopment of abandoned industrialsites of different sizes and in different contexts, turning them into a development opportunity for the local
area and for the Country system. Futur-e aims to adopt
a circular economy approach by converting abandoned
industrial sites into eco-sustainable places dedicated toscience, art, culture, tourism, or new industrial activities(see the chapter “Our commitment to a just transition:leaving no one behind”).
Enel supports this process through participation with Eurelectric on the Zero Pollution Stakeholder Platform.

Commitment to nature conservation
by partnering with associations and organizations
for sustainable development
The growing and renewed attention to nature and its ecosystems has led to the emergence of new coalitions andmultilateral initiatives to stimulate the definition of restoration targets and the development of more ambitious
policies to preserve biodiversity. Within this context, Enelis actively committed to this process, collaborating withthe most relevant global stakeholders and participating in
multilateral initiatives and dialogues. In particular, the main
activities undertaken in 2022 included:• partnership with Business for Nature, launched in 2020
with the signing of the call-to-action “Nature is Everyone’s Business”, with whose business delegation Eneltook part in the pre-COP 15 negotiations in Geneva, inMarch 2022. Furthermore, in October 2022, Enel wasamong the first companies to sign the Business Statement for Mandatory Assessment and Disclosure, andto support the “Make it Mandatory” campaign, whichmakes it mandatory for large companies and financial
institutions to assess and report risks, dependencies
and impacts on biodiversity by 2030; participation in themultistakeholder dialogue promoted by the World Business Council For Sustainable Development (WBCSD)
in 2022 for the definition of the “Roadmap to Nature
Positive”, specifically for the part relating to the energy
sector, which will provide companies with a frameworkof action on nature, supporting them with the definitionof targets, as well as with measurement and reporting
activities aligned with the implementation of the Global
Biodiversity Framework;• the partnership with the Taskforce on Nature-related
Financial Disclosure (TNFD) through participation in the
Forum, launched in 2021, which is working to establish,(4) 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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We empower sustainable progressby 2023, a global framework for companies and financial institutions to assess and report on nature- andbiodiversity-related risks and opportunities. Connected to this, in October 2022 Enel joined the TNFD Pilot
Program led by the WBCSD, which brings together 23
companies globally to test the new framework. These
companies are divided into three groups: energy, land3

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use and built environment;• ongoing support given to the Science Based Targets

Network (SBTN), a project that, on the trail of the Science Based Targets initiative (SBTi) in the area of climate,
will define specific new improvement targets and objectives for nature and biodiversity conservation.

Environmental governance and management model
2-9

2-12

2-13

2-24

3-3

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. In this context, it takes into account theneed to pursue sustainable success, particularly: (i) whendefining 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 the achievement of
which is linked to a significant component of 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. During2022, the Corporate Governance and Sustainability Committee dealt with nature-related issues, reflected in thestrategies and related implementation methods in 2 of the
6 meetings held, in particular during the review of: (i) the
Sustainability Report for the 2021 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 2023-2025, including environmental objectives;(iii) updates on the main activities carried out in 2022 by
the Enel Group in the field of sustainability, on the status of
implementation of the Sustainability Plan 2022-2024 andregarding Enel’s inclusion in the main sustainability indices.
For more information on the activities carried out by the
corporate bodies, please refer to the Enel Report on Corporate Governance and Ownership Structure, available atwww.enel.com, governance section, as well as the chapter
on “Climate governance” in this document.
The Board of Directors approves the Sustainability Reportwhich also contains the Group’s environmental policy.

Conservation of natural capital309

Environmental policy
G4-DMA EN

Strategic factors in the planning, implementation and development of Enel’s operations include protecting theenvironment and natural resources, tackling climate change, and contributing towards sustainable economic
development. These are also key factors in consolidating the Company’s position as leader in the energy market. Enel has had a Group environmental policy in place since 1996, based on four fundamental principles:
1. protecting the environment by preventing impacts and exploiting opportunities;
2. improving and promoting the environmental sustainability of products and services;
3. creating shared value for the Company and stakeholders;
4. meeting legal compliance obligations and voluntary commitments, advancing ambitious environmental
management practices
and pursuing ten strategic goals:

1
2
3

310

To apply internationally recognized Environmental Management Systems to the whole organization, underpinned by the principle of ongoing improvement and adoption of environmental indices to measure the environmental performance of the whole organization.
a. Ensuring annual compliance with ISO certifications 14001 extension to the entire scope of the Group’s activities
b. Streamlining and harmonizing certifications in the various organizational areas, seeking out partnerships
and sharing best practices in environmental management

To reduce environmental impacts by using the best available technologies and best practices in the construction, implementation and decommissioning stages of plants, with a view to life cycle analysis and circular economy.
a. Assessing the environmental impact caused by the construction of plants or by major restructuring operations
b. Examining and applying Best Available Technologies (BAT)c. Protecting and monitoring surface and groundwater quality in the areas surrounding the plants
d. Ensuring the internal development and application of international best practices

To build infrastructure and buildings that protect the local area and biodiversity.
a. Assessing the risks and opportunities of biodiversity
b. Developing and implementing infrastructures based on the Mitigation Hierarchy, the No Net Loss and theZero Net Deforestation principles
c. Developing and updating a Biodiversity Action Plan with projects that take into account the specific aspectsof local environments (conservation of the habitats of protected species, reintroduction of particular species
and replanting of indigenous flora in cooperation with research centers and nature observatories)
d. Implementing biomonitoring activities (terrestrial, marine, river)e. Protecting areas of high biodiversity value and, among these, forests and protected areas
f. Mitigating the visual and landscape impacts of power and distribution facilities and protecting archaeological assets during construction activities
g. Undertaking research into innovative solutions to promote the development of urban biodiversity in theprovision of infrastructures and services

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To play a leadership role in renewables, in the decarbonization of power generation, in the electrification of enduse and in the efficient use of energy, water and raw materials.
a. Progressively expanding the renewable generation facilities and pursuing the goal of decarbonizationb. Improving the efficiency of power plants
c. Reducing network losses tied to electricity distribution
d. Efficiently managing water resources for industrial uses, with a particular focus on water stress arease. Promoting services and products for electrification and end-use energy efficiency

5

To ensure optimal waste and drain water management and promote circular economy initiatives.
a. Reducing waste production
b. Reducing the pollutant load of wastewaterc. Increasing the recovery and recycling rate of waste and drain water produced
d. Exploiting by-products for use as raw materials in external production processes
e. Applying the principles of the circular economy and seizing opportunities for reuse in second life equipment
and productsf. Carefully selecting disposal service providers and using IT systems for waste traceability

6

To develop innovative technologies for the environment.
a. Implementing systems to boost plant efficiency and lower emissions
b. Promoting and developing smart grids and digital asset management solutions to improve their environmental
performancec. Developing innovative solutions to support renewable production (photovoltaic, geothermal, wind, green hydrogen), integrated with energy storage systems
d. Promoting and developing electric mobility
e. Developing innovative solutions for energy efficiency and smart cities
f. Devising innovative services for the modulation of energy consumption that enable greater flexibility and stability of the electricity grid and more efficient use of resources
g. Digitalizing processes and cloud computing

7

To communicate with citizens, institutions and other stakeholders about the Company’s environmental performance.
a. Publishing the Sustainability Report and providing open data access to the Group’s key environmental parameters
b. Communicating with financial analysts and taking part in various sustainability indicesc. Consulting and engaging local stakeholders
d. Disseminating environmental initiatives online

8

To provide employee training and raise awareness on environmental issues.
a. Providing training on environmental issues
b. Engaging employees in campaigns to support the environment

9

To promote sustainable environmental practices with suppliers, contractors and customers.
a. Applying supplier assessment criteria based on environmental performanceb. Holding meetings for information and training on relevant environmental aspects at the start of the works
c. Assessing suppliers based on their environmental performance in activities carried out on Enel’s behalf

10

To meet and exceed legal compliance obligations.
a. Ensuring that operations are carried out in accordance with the legal requirements of the various countries andwith the voluntary commitments madeb. Correcting any non-compliance with obligations and voluntary commitments
c. Assessing further voluntary environmental actions and practices, including where not legally required

Chief Executive Officer
Francesco Starace

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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 beencreated, which is a unit dedicated to specialized training
on Safety, Health and Environment issues;• at Business Line level, the HSEQ Functions present in
the global structure of each Business Line with a role ofcoordination in 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 units with a local coordination function and managers and contact persons
identified in the individual operating units who 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 corporate organization charts; operating procedures and incompliance with Country legislation reflect the Company’scommitment to these issues. This organization also ensures that the Integrated Health, Safety and Environment
Management System complies with the requirementsof the international standards ISO 14001:2015 and ISO
45001:2018.

Application of ISO 14001 certified Environmental Management Systems (EMS) is one of the strategic tools defined by the Group’s environmental policy; at the end of2022, almost all (over 99%) of operations were certified,
while for new plants and new installations, the preparatory
activities for certification are progressively planned. 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 2022, 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”).

Training and internal communication
Training is one of the strategic objectives of the Group’s
policy and forms an integral part of the EMS. Approximately 41 thousand hours of training were provided in 2022,
including 13 thousand hours directly through SHE.Factory. In 2022, implementation of the environmental training
program continued, targeted at increasing the skills of
the Group’s technical staff and people with operational
responsibilities (Environmental Competence Building Program), particularly in the field of water management andclimate change. Training sessions were also held to update staff on Group policies and on the environmental data
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adoption criteria in all Countries. Various communication
initiatives were promoted through internal web channels inorder to disseminate and strengthen Enel’s commitment
to preserving biodiversity and nature, by disseminating
best practices and active restoration projects in the various Countries where the Group is present, and specificcampaigns were launched to raise the awareness of internal personnel (see the “Near Miss” box). Enel has alsoestablished partnerships with local environmental associations to raise awareness among young people in the areas
where it operates.

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We empower sustainable progressTraining in schools
In 2022, on World Biodiversity Day, Enel launched
two innovative training projects in conjunction withLegambiente and Beeing and targeted at primary andsecondary school students, to raise awareness of theCompany’s high level of commitment to defending
biodiversity and supporting the energy transition.
Biodiversity4Young reached more than 250 students
in 7 regions throughout Italy in 2022, thanks to thepresence of experts from Legambiente and local Enelcolleagues, who illustrated our initiatives with the3

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passion of those who are part of the local community inthe host territory.
Bee4education took place in the Training and
Education Center in L’Aquila, in partnership with thestartup Beeing; this project consists of providing a very
inspiring experience on energy and biodiversity with thepossibility of getting up close to bees, thanks also to
an innovative hive with a transparent side that enables
the bees to be observed while they work. The training
program, which was carried out from May to October
2022 and was targeted at primary and lower secondary
schools in the province of L’Aquila, involved 300 students
and 34 teachers at 4 local schools.

HSE
Near Miss Campaign
In 2022, an innovative internal communication campaign
on HSE Near Misses was launched in all Countries, withthe aim of informing Enel X Global Retail people about themeaning of near misses and the importance of reportingthem and raising awareness among contractors.
Some cartoon examples were shared, which depicted
near misses that have actually occurred within theBusiness Line.

Conservation of natural capital313

Identification of impact factors and dependencies
on nature and biodiversity
The identification of potential impact factors on natureand biodiversity is fundamental for Enel in order to define
the most effective strategies to avoid, minimize, remedy or compensate for the associated effects, in line withthe provisions of the Mitigation Hierarchy included in theGroup’s environmental policy. Similarly, the identification of
dependencies on natural capital and biodiversity enables
us to identify the most appropriate strategies to reduce
the risks to the Company that may derive from these dependencies.
The activity referred primarily to direct activities that are

not yet inclusive of the entire value chain, and involved allof the Group’s main technologies, from electricity generation from renewable sources and combined-cycle gas turbine power plants, to electricity distribution systems. The
following were not considered in the analysis: coal-fired
thermoelectric generation, which is already the subject of
a medium-term phase-out program, in line with the decarbonization strategy adopted by the Group, and infrastructure linked to energy services, such as charging stations
for electric cars, as they operate in generally urbanized
habitats.

Impact factors
The main impact factors (or pressures) that may be exerted on nature are summarized in the following categories,
inspired by those identified by the Science Based Targets
Network (SBTN), and which have been adopted as thestarting point for analyzing actions implemented to mitigate the associated risks:
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, vibration, 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 thevarious technologies. In this case, the evaluation approachindicated by the SBTN and the TNFD proposal was used,
and the ENCORE tool was used.(5) The scores were internally reviewed based on the specific construction and operating solutions adopted by the Group.

Impact factors by technology

Hydroelectric

Solar PV

Wind

CCGT

Networks

1.1 Use of terrestrial ecosystems

VM

M

M

M

M

1.2 Use of fresh water ecosystems

VM

2. Water withdrawal

M

3. Climate-changing gas emissions (GHG)NM

M

4.1 Air pollutants (non-GHG)

NM

NM

4.2 Water pollutants

MNM

4.3 Soil pollutants

NMNM

4.4 Solid waste

M

5. Disturbance factors and invasive species

NM

VM Very Material

NM

M

Material

NM Non Material

M

VM

M

M

M

NM

M

NM

M

NM

M

not applicable(5) ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure), tool developed by the Natural Capital Finance Alliance (https://encore.naturalcapital.
finance/en/about).

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Considering only the material impact factors with respect
to the various technologies, each weighted according to3

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its share of generation at Group level,(6) the distribution ofpriorities shown in the figure is obtained.

Impact factors prioritized by materiality for the different technologies, weighted according to theirshare of power generation

7%

26%

Utilization/modification of terrestrial ecosystems
Water withdrawal

9%

Solid waste
Emissions of climate-changing gases (GHG)
Disturbance factors and invasive species
Soil pollution

9%

16%

Use/modification of fresh water ecosystems
Water pollutants

10%
11%

12%

The overall analysis therefore shows that, considering the
average weighting of the various technologies, the main
impacts on the external environment are associated withthe use/modification of terrestrial ecosystems and withwater withdrawal.

Dependencies
Dependencies found to be material based on the criteria
indicated by SBTN for the various technologies adopted byEnel are attributable, in relation to the main direct activities, to ecosystem services necessary for the operation ofplants 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 environmental
events, which are one of the primary causes of failure
and unavailability of renewables plants (photovoltaic
and wind) and distribution facilities;
3. use of water in production cycles, mainly in thermoelectric power generation;
4. soil stabilization and erosion control, important for hydroelectric reservoirs, renewables plants (photovoltaic
and wind), and network infrastructure;

5. conservation of the water cycle, which enables the operation of hydroelectric power plants.
With regard to the upstream supply chain, the main dependency refers only to the “Use of raw materials (mineraland non-mineral) for the construction and operation ofplants”.
The results of the preliminary materiality analysis of ecosystem dependencies conducted at Group level for thevarious technologies are shown in the following table. Alsoin this case, the evaluation criteria indicated by the SBTN
and by the TNFD proposal and the guidelines provided by
the ENCORE tool were used. The scores were reviewed internally based on the construction and operating solutions
adopted by Enel.

(6) Networks were given a conventional weighting of 25%, being the average of the values associated with the various generation technologies, also by virtue
of its transversal function with respect to them.

Conservation of natural capital315

Dependencies by technology

Hydroelectric

Solar PV

Wind

CCGT

Networks

1. Climate regulation

VM

VM

VM

NM

VM

2. Flood and storm protection

M

M

M

NM

VM

3. Use of surface fresh water

VM

NM

4. Soil stabilization and erosion control

VM

M

5. Conservation of the water cycle

VM

M

6. Water resource quality

NMNM

7. Filtration of pollutants

NMNM

8. Bioremediation

NM

9. Use of groundwaterNM

VM Very Material

M

Material

NM Non Material

Considering only the material dependencies with respect
to the various technologies, each weighted according to

VM
M

NM

M

NM

Not applicableits share of generation at Group level,(7) the distribution ofpriorities shown in figure is obtained.

Dependencies on ecosystem services prioritized by materiality for the different technologies,
weighted according to their share of power generation

27%

Climate regulation
Use of surface fresh water

16%

Soil stabilization and erosion control
Flood and storm protection
Conservation of the water cycle

20%
17%
20%
The overall analysis therefore shows that, considering the
average weighting of the various technologies, the main
dependencies for the Company are associated with climate regulation and the use of surface fresh water. Regarding these results, Enel’s decarbonization strategy,

which is focused on the phase-out of fossil fuels and thegrowth of renewables, particularly wind and solar technologies, reduces impact on the climate by helping to reducepressure on the ecosystem services on which we depend,such as water resources.

(7) The Networks were given a conventional weighting of 25%, 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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Analysis of environmental risks and opportunities
The analysis of environmental risks and opportunities associated with Enel’s business activities was conducted with amultifunctional integrated approach in line with the guidelines set out in the guidelines of the TNFD proposal and of
the SBTN. The analysis, conducted in 2022 based on the
results of the materiality analysis for impacts and dependencies described above, 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 biggest
opportunities in relation to each relevant impact factor
and dependency. This preliminary screening analysis led tothe definition of an evaluation template for each technology, which was used to identify the main critical events ofa physical type (both acute in the short-medium term andchronic in the long term) and of a transitional type (resulting from possible changes in the regulatory, technological,
reputational or market framework), and the main associatedrisks and opportunities expected. The main operational andmaterial economic-financial risks for Enel are shown below:• reduction or interruption of generation capacity;
Importance• recovery and repair needs;• authorization delays;• adaptation and technological innovation needs;• additional insurance fees;• loss of competitiveness.

Simultaneously, this screening phase selected 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 regenerationof natural habitats;• business opportunities, linked for example to the offer ofnature-positive energy products and services, the launchof 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 screening analysis on Group impacts/risks conducted
in 2022 reaffirmed the action priorities identified last year
and described in the following table.

• Magnitude• Probability

Level of control• Goals• Mitigation plans

Priorities

High

Moderate

High

High

High

Moderate

Very highVery highModerate

High

High

Moderate

Low

Moderate

Low

Impact Factors (or Pressures)
Use of terrestrial ecosystems• Land use• Habitat transformation and fragmentation
Use of natural resources• Water withdrawal
Climate change• Climate-changing gas emissions
Pollution• Pollutant emissions (non-GHG)• Water and soil pollution• Waste production
Disturbance factors and other• Noise and other• Invasive species

The identified intervention priorities relate to the controlof risk associated with land occupation and the transformation of ecosystems, and particularly to the use of land
and the transformation of terrestrial habitats, in relation
to which new commitments were made at Group level as
early as last year (see the paragraph “Enel’s commitment tobiodiversity”). The analysis also highlighted an already very
high level of commitment and control for risks associatedwith the use of natural resources (water withdrawal) andwith potential pollution factors of environmental matri-ces (emissions, discharges and waste production), as wellas with climate change. In fact, for years Enel has alreadybeen defining stringent improvement targets, the resultsof which are described in the following paragraphs, whichmake it possible to mitigate the main risks associated withthese impact factors in the future.
Following the screening activity described above, a moredetailed aggregate analysis (by technology) was launched
and is currently under way, which takes into account theestimated magnitude of potential risks or possible oppor-

Conservation of natural capital317

tunities, the relative probability of occurrence and the mitigation actions already adopted by the Company. At theconclusion of this phase, the risk/opportunity analysis will
therefore also be extended to the project and site level,to take into account the specific local context and the interaction of each technological asset with the local characteristics of nature and biodiversity. In this further phase,particular importance and priority will be given to plants inoperation and to new assets in the planning and authorization phase which are located in areas of high value or
naturalistic vulnerability, such as protected areas, critical
habitats and water risk areas.

Dependency management
Meanwhile, as regards the management of dependencies, the main criticality of which is linked to the effects ofclimate change (climate regulation), an analysis was conducted for each technology and for each geographicalarea in which the Group is present. The operational andeconomic-financial risks resulting from the occurrence ofacute and chronic meteorological phenomena were also
analyzed in order to define specific adaptation and resilience plans. Acute and chronic physical phenomena are intensified and accelerated by ongoing climate change andtheir effects on the integrity, operational continuity andcorrect functioning of our plants depend, to an essential
extent, on the ecosystem services of mitigation and control performed by the surrounding natural environment,
which may be potentially compromised by human impacts(such as the sealing of occupied soil or the extraction of
raw materials). Among these ecosystem services, regulation of the water cycle and the ability of vegetation to protect, prevent and mitigate the onset and intensity of flooding or soil subsidence phenomena are particularly relevant,as is the action of extreme winds. For more details, see theparagraph “Enel’s impact on climate change - Climate scenarios, strategy and risks” in the chapter “Zero emissions
ambition”.

Operational analysis andmonitoring tools
From an operational point of view, in order to identify andminimize environmental risks related to our 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. These tools are referred to below and can operate
in a capillary and synergistic way within the organization toprotect the environment and associated ecosystems.

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Group Policy for the classification and analysis of environmental accidents. Environmental accidents are classified
according to their type and relevance. This classification isbased on their possible impact on the environmental matrices and on any potentially sensitive areas (ecosystems andprotected areas), in addition to their negative impact on
the organization itself (operational, legal, reputational andfinancial). In accordance with their classification 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 to environmental impacts. The policy applies to all operational sites (including those being decommissioned) and toGroup staff functions in which an EMS compliant with ISO
14001:2015 requirements is adopted. Its application involves
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 useof an IT tool called ERA (Environmental Risk Analysis). The
analysis process involves evaluating both the interactions ofsignificant operational aspects with various environmental
matrices, and mitigation controls adopted for compliancewith regulatory compliance, as well as the most stringent
voluntary continuous improvement targets; furthermore,taking into account the results of the analysis of any accidental environmental events and periodic environmental
visits to the 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 andthe related prioritization of improvement actions. Finally, theanalysis enables the assessment of environmental aspects
linked to governance and strategic activities carried out by
the central Functions of the organization.
Extra Checking on Site (ECoS) Policy. The ECoS is a tool
for planning and conducting site visits by cross-divisional
teams of experts in support of plants and operational facilities and with a view to identifying improvement plans
and sharing best practices. In 2022, the different BusinessLines across all the Countries in which the Group operates
conducted over 80 ECoS with a focus on the environment.
See also the chapter “Occupational health and safety”.
Environmental qualifications and inspections for suppliersof products and services. In consideration of the importanceand role that suppliers have in determining the overall environmental performances of the Company, Enel has adopted
a supplier environmental assessment procedure that is structured and homogeneous for the entire Group, activated in
the development phase, above all for high environmental risk
activities, and following important environmental events. Environmental assessments aim to verify the EMS of suppliers

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as a whole and propose improvement actions to be sharedwith the supplier. They are also accompanied by environmental inspections conducted at the suppliers’ operating sites,
which include 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 of execution in thefield (see the chapter “Sustainable supply chain”).
Consequence Management Procedure. At Group level, Enelhas adopted an organizational procedure that defines a
global line of action to improve the environmental perfor-

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mance of its suppliers; specifically, roles and responsibilities
are defined in order to implement Consequence Management, as well as actions against its contractors, in the eventof their involvement in significant environmental events and/or due to low performance on specific environmental issues,encountered during the performance of the contract.
Finally, it should be noted that in analyzing the local context, which forms the basis for the community relations
model, an assessment of the main social and environmental risks and opportunities is carried out in order to minimize them and promote socio-economic development.
See the chapter on “Engaging communities”.

Preserving biodiversity
3-3

304-1

304-2 304-3 304-4

Enel’s commitment to biodiversity
Protection of biodiversity is one of the strategic objectivesof Enel’s environmental policy and is regulated by a specific policy adopted by Enel in 2015 and renewed in 2023
following COP 15. The policy defines the guidelines for all
the Group’s biodiversity protection initiatives and the principles according to which they operate, aligned with theKunming-Montreal Global Biodiversity Framework.

Enel has renewed its commitment to biodiversity, published in the 2022 Sustainability Report, by committing itself to concrete actions and time targets.

Biodiversity Policy
Enel’s roadmap on biodiversity conservation is inline with the Kunming-Montreal global biodiversity
framework, embracing the mission of taking action
to halt 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.

Conservation of natural capital

319

Our commitment
to nature
Enel undertakes to achieve No Net Loss of biodiversity
for new infrastructures from 2030, commencing its
adoption on selected projects in areas of high biodiversity
importance beginning 2025. To achieve this goal, Enel will
work in accordance with the principles of the Mitigation
Hierarchy to avoid, minimize and recover impacts onnatural habitats or species that are threatened, endemicor restricted in range.

In addition, Enel is committed to conserving forests and,
if deforestation cannot be avoided, will reforest areasof equivalent value in line with the principle of “No Net
Deforestation”.
Enel will not build new infrastructures in areas designatedas UNESCO World Heritage Natural Sites.
Enel integrates the assessment of risks and opportunities
linked to nature into corporate activities in order toalign risk management strategy and processes; it also
undertakes to evaluate 100%(8) of the significant assets inoperation by 2025 in order to update, where necessary,
the associated action plan.

(8) For Enel Grids, the assessment focuses on significant assets in protected areas.

320

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1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

With technical and specialist support from The Biodiversity Consultancy, Enel has developed a methodology forsite-specific adoption of the “No Net Loss” (NNL) principle on biodiversity, developed in a functional manner andintegrated into business processes and in line with International Finance Corporation Performance Standard 6
on conserving biodiversity and living natural resources, inorder to define any mitigation actions necessary for individual projects.

No Net Loss: from analysis
to implementation
The methodology involves applying an impact mitigation
hierarchy starting from a preliminary analysis of natural
habitats, including forests, and priority species, by meansof a desk analysis that involves the use of application tools
such as GIS Portal (Geographic Information System)—for
the correlation of georeferenced information relating toassets with global maps on habitats (IUCN Habitat TypeClassification) and on species (IUCN Red List of Threatened
Species)—and IBAT (Integrated Biodiversity Assessment
Tool), which is specifically for biodiversity. In addition to
the desk analysis, site surveys are carried out starting fromthe localization of the new infrastructure, and continuing
up to the execution and monitoring phases. In order tomitigate and compensate for any residual impacts onnatural habitats—including forests—and species, specificaction plans (BAP – Biodiversity Action Plan) are definedand broken down into monitoring, conservation andcompensation projects, responding to NNL’s commitment
to biodiversity. Enel tested the methodology by developing
a number of pilot cases, starting with environmental
impact assessments and the related mitigation actions
already identified; it emerged that in some cases, theactions identified already guarantee achievement of the
NNL, whereas for others, additional offsetting actions are
required. By way of example, the results on some of thesites analyzed are shown below.
Carbo Project - The project is a study for the constructionof a photovoltaic system over a site spanning 96 hectaresin Spain (Andalusia), which is situated in natural habitats

characterized by the presence of oaks and shrubs, and inhabitats modified by the presence of crops. The species
analysis did not highlight any species at risk of extinction(IUCN Red List of Threatened Species). During the impact
assessment phase, many actions were defined for theconservation of local biodiversity, such as planting oaktrees and green corridors along the perimeter of the plant,
as well as protection and conservation interventions forsome characteristic species (for example, installation ofwater stations, construction of protective covers using
piles of stones, restoration of old buildings close to theplant used by various species as potential nesting sites) inorder to promote the reproductive capacity of the species.
The defined compensation plan satisfies the NNL criterion
and no additional offsetting actions are required.
Barzalosa Project - Additional case to apply themethodology, concerning the design, in the Municipalityof Girardot (Cundinamarca), Colombia, of a new primary
substation (0.89 ha surface area) and related high voltage
line (0.8 km) and medium-voltage line (47.5 km). Fromthe impact assessment, important actions were defined
to protect biodiversity, minimize impacts, and carry out
reforestation, despite the area being situated within apartially urbanized habitat. Right from the screening
phase, Enel identified the type of habitat with the aid of
application tools and the use of detailed global satellite
maps; desk analysis were also conducted on the animal
species in the area, also supported by the results ofmonitoring campaigns carried out in situ. Although theapplication of the NNL methodology estimated a negligible
net loss of biodiversity, Enel nonetheless committed to therestoration, conservation and enhancement of habitat byplanting of over 200 native trees.

Conservation of natural capital

321

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 renewable plants
and distribution networks, in line with the Group’s decarbonization strategy. The Group Guidelines, issued in 2019,
define the principles and procedures for managing impacts on biodiversity during the entire life cycle of plants,from the development phase to operation and decommissioning, through the application of the Mitigation Hierarchy in the various phases of the life cycle.
For the Group’s plants and installations that have beenpresent in the local area for a long time, environmental
protection and monitoring action plans are also adopted.
In line with international standards and the principles of thebiodiversity policy, the risk to biodiversity is assessed in an
integrated manner right from the feasibility phase, starting with the location of the site of interest, and involves
an assessment of the type of habitat, prioritizing habitatsthat do not present environmental criticalities, and considering geographical proximity to protected areas, habitatsthat are critical or important for biodiversity, as well as thepotential presence of endangered species in the area ofinterest. To support the definition of local action plans forthe 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 sustainablebusiness for the economy, nature and people.
In the construction of new plants, specific action plans arealso adopted to protect biodiversity by checking the effectiveness of the actions undertaken and the occurrence ofany potential impacts, including at a later stage after theworks have started. In the case of large plants, impact mitigation plans are envisaged, developed together with local
stakeholders, including reforestation (see box “Restorationof the El Quimbo tropical forest”).
Once the infrastructure is commissioned, protection of
biodiversity becomes an integral part of environmental
management, through periodical management 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 theplant consolidates its relationship with the local area and322

Sustainability Report 2022

where initiatives are developed, such as voluntary projects
to safeguard local species and improve habitat conditions,based on knowledge of the environment surrounding thesite. The results of monitoring at the local level are communicated and analyzed at global level by means of internal tools, allowing the identification of general issues thatneed 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
and bats. Among the global initiatives aimed at reducing interference with birds and bats, the Wind Wildlife
Challenge project (2022) was launched, which involves
identifying increasingly innovative solutions such as theuse of sensors and tools, based on radar, chamber andmulti-sensor technologies, that can detect and even actuate the automatic shutdown of the turbine concerned;
tests are under way on plants in Italy, Spain, Chile, theUnited States and Canada. This testing campaign follows
the one already launched in 2021 in the South African
plant of Gibson Bay with ultrasonic deterrent systems
specifically for bats;• hydroelectric plants: interference with fish and soil erosion; respectively, fish restocking actions are envisaged
to restore the ecosystem and species, such as the restoration or improvement of spawning or fry habitats, theplanting of native species directly or near the banks of
the reservoir in order to control the stability of the terrain, and also to improve habitat conditions;• solar plants: related to the occupation and possible
transformation of habitats. The main initiatives include
agrivoltaics, where the spaces between rows of photovoltaic modules are used to plant aromatic and medicinal herbs, food plants and melliferous flowers to also encourage the establishment of pollinator species, which
improve the biodiversity of the site’s ecosystems andecosystem services;• distribution networks: risk of birds colliding with overhead lines being electrocuted; for this reason, startingfrom the design phase to the operation and maintenance of existing sites, according to the biodiversity
aspects associated with the site, Enel adopts mitigation
measures, including the installation of line marking devices at regular intervals along overhead power lines,
as well as the isolation of live parts. Added to this areactions related to the mitigation of interference risks
during the construction phase, including the relocationof terrestrial fauna to protected areas.

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Reforestation
São Luiz Gonzaga(Rio Grande do Sul)
Maintenance activities on existing networks require deforestation interventions to guarantee the correct and safe
functioning of power lines and substations. In order tomitigate the impact of maintenance carried out on operational networks, Enel defines and adopts recovery plans for
impacted habitats, through systematic planting of native
species.

Restoration of the
El Quimbo tropical forest(Colombia)
Near the El Quimbo hydroelectric plant in Colombia, an
important reforestation project focusing on tropical dry
forest was started in 2014 and is still ongoing, which willaffect a total area of over 11,000 hectares in the various
stages of the project. In the initial phase, launched on
an area of 140 hectares with the support of Fundación
Natura, the best strategies to be implemented in therestoration process were defined and the optimal native
species for restoration and propagation were identified;
the pilot phase also led to the discovery of a new species

Opportunities for development
and shared wellbeing
For us, interacting with the local area and communities is
an opportunity to promote socio-economic development,
generating value and wellbeing through our services andproducts, in all the contexts in which we operate. In particular, as far as cities are concerned, the ongoing growing trend of urbanization can generate significant conflicts between natural and urban environments. To meet3

Materiality analysis

4

Our performance5

Appendix

The main initiatives notably include an activity launchedin 2017 in the Municipality of São Luiz Gonzaga (Brazil),which was completed and tested as recently as the endof 2022, linked to the license for maintaining the distribution network in the area. It is a reforestation activity using
plants for phytodepuration as well as melliferous species,
which are used to attract pollinating insects, created at aformer landfill. Local communities have also been involved
in monitoring herbaceous and shrubby flora grown in thearea. Furthermore, some bird species have also been considered, for which a census was carried out based on thesighting and discovery of nesting sites.

of bromeliad Pitcairnia huilensis. In 2022, the area
covered by the restoration projects totaled approximately
7.3 thousand hectares, including approximately 6.6
thousand hectares of assisted natural regeneration andapproximately 0.7 thousand hectares of active restoration.
In addition, the “Attalea“ Tropical Dry Forest ResearchCenter was created, which works in collaboration
with Colombian universities on numerous ecologicalrestoration initiatives, collaborations and projects insupport of biodiversity research. Demonstrating theimportance of the area from an ecological perspective,
around one thousand hectares of the area being restored
have already been declared a Civil Society Nature Reserve,
while the possibility of extending the protected area toinclude a further 3 thousand hectares is being evaluated.

this need, Enel recognizes the importance of adopting
nature-based solutions (NBS) as a powerful tool for sustainable city planning and innovative design for customers
who address these issues. Enel X Global Retail proposes
NBS solutions that can be integrated into the offer portfolio, and which have been associated with internationallyrecognized scientific indicators that are used to measure
the positive impacts on urban biodiversity. In practice, theNBS solutions can be integrated with technological solutions and are aimed at providing ecosystem services, fromclimate change adaptation and mitigation to improving
the quality of life in urban centers.

Conservation of natural capital

323

Nature in the city

One of the various global initiatives for integrating NBS
with Enel X solutions is an intervention carried out inSantiago, Chile, involving the rooftop refurbishment of
the Mandarin Hotel; along with the installation of a new
photovoltaic system, a biodiversity intervention was
carried out involving the construction of a greenhouse,
the planting of local fruit trees and the installation of anumber of beehives to protect pollinating species anddevelop urban beekeeping.
A further environmental redevelopment intervention was
carried out in the city of Bogotá (Colombia), near thee-bus terminal, by Enel X Global Retail. The intervention
involved planting urban vegetable gardens and verticalgreenery, which was integrated with a number of murals.
The initiative also directly engaged the local community
in choosing artistic content and enhancing the urban
garden.

The strategy linked to urban biodiversity is associated withfurther opportunities linked to power generation, such as
the creation of agrivoltaic plants, which integrate businessneeds with nature. In recent years, many pilot solar plants

The biodiversity action plan
In 2022, 200 projects were carried out to protect species
and natural habitats at operating plants, of which 82 weredeveloped in partnership with government agencies andnon-governmental organizations and universities, for a total investment of around 11.9 million euros. The projects
were carried out in all countries and regions and mainly
concern operational renewable generation plants and distribution networks. The projects included habitat recovery activities covering 9,452 ha (9,092 ha in 2021), mostof which are related to ecological restoration and reforestation, mainly in Colombia, Brazil, Chile and Spain. Examples of the measures to mitigate impacts on biodiversity carried out to apply the related policy are available on
the sustainability section of the www.enel.com website, at324

Sustainability Report 2022

have been built, where planting of native and pollinating
species has been carried out, to support the entire ecological balance, as well as promoting sustainable crops, insynergy with local communities.

200

projects
the following link: https://for the protection ofwww.enel.com/investors/
species and natural habitatss u s ta i n a b i l i t y/s t ra te gy-sustainable-progress/habiodiversity.
of
habitats
restoredIn addition, in 2022 a fur(related to projects carried
ther 63 projects relatout in 2022)
ing to plant construction
sites were carried out, mainly in Brazil, Chile, Spain andNorth America, targeted at the conservation and monitoring of native species impacted, for an overall capital expenditure of 6.4 million euros.

9,452

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We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Interaction of assets with biodiversity
and protected areas

are updated annually, to measure the impacts generated
and monitor the effectiveness of action plans.

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 power generation sites. For this reason, in 2021 we
defined and calculated a set of specific indicators, which

Land occupation: the area of land occupied by assets. Thisis a general indicator, as it does not provide an indicationof the quality of the habitat that has been occupied by theassets.

Land occupation(9) – Power generation assets
Technology
Solar

Hectares (ha) in 2021(10)Hectares (ha) in 2022

16,632

27,773

Wind

12,66013,326

Hydroelectric

202,425

202,425

Geothermal

442

442

Thermal

6,318

6,318

In 2022, the land occupation of power generation assets increased by 11,807 ha, equal to +5%(10) of the total(238,477 ha in 2021), including 4.7% solar and 0.3% wind, inline with the development of new plants envisaged by thebusiness strategy.

Technology
Primary and secondary substations

Land occupation – Asset Grids(11)This year, data on the occupation of distribution infrastructures is also reported for the first time, calculated byevaluating the buffer zone for high-voltage (HV) and medium-voltage (MV) lines as land occupation, distinguished byvoltage level and type of conductor (bare or in cable) andthe surface area of transformer substations.
Hectares (ha)(12)

km

2,539

-

High Voltage Lines

54,29633,716

Medium Voltage Lines

431,307653,205

Total

488,142686,921Transformation of natural habitats: measures the area ofland occupied in hectares (ha), classified according to the
IUCN(13) habitat categories on which the assets have been
built. It therefore represents a specific indicator of the impact on habitats that have been transformed to build plants.
Power generation plants that entered operation in 2022
occupy land amounting to 11,807 ha, an increase of 10%
on the growth recorded in 2021 (10,700 ha), due to an increase in the development of renewable energies; of thisnew land occupation, 5,770 ha (49%) relate to natural habitats (23% less than the previous year, 7,530 ha), and, of
these, 537 ha (5%) are related to forest-type habitats.
As far as distribution is concerned, almost all HV and MV
lines were built in the 1970s, mainly in urbanized habitats.

Around 70% of the infrastructures built to date are 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: mapping was carried out for all power generation assets and from this year
also for Grids HV and MV lines, in the main Countries,(14) toassess the presence of assets in UNESCO World Heritage
Natural areas and IUCN I-IV classified protected areas.

(9) Land occupation was calculated for power generation facilities using a GIS application in which each plant was modeled and georeferenced. The following
criteria were used to model land occupation and area of influence: solar, thermoelectric and geothermal were modeled with the plant perimeter; for hydroelectric, the perimeter of the reservoirs was modeled; for wind plants, from the position of the generators the area of land occupation is modeled in aprecautionary manner to take into account ancillary works such as yards, roads and areas used when the construction site is operative (in so as far as they
are subsequently restored).
(10) Compared with last year, KPI mapping and calculation tools were refined, which led to a slight change in the figure compared to 2021.
(11) Italy, Spain, Chile MT, Peru, Colombia and Brazil (São Paulo, Rio de Janeiro, Ceará) are considered.
(12) Land occupation intended as a buffer zone for HV and MV lines and the area occupied by primary and secondary substations was calculated using the PUC(Single Cartographic Portal).
(13) https://www.iucnredlist.org/resources/habitat-classificationscheme.
(14) Italy, Spain, Chile MT, Peru, Colombia and Brazil (Sao Paulo and Rio de Janeiro).

Conservation of natural capital

325

Presence of power generation plants in protected areas as at 2022 – by technology(15)number of infrastructuresin protected areas/total
number

Solar

4/161

Wind

8/266

Technology

Countries

Presence in protectedareas (ha)Presence in protectedareas as % of the total
occupied by technology

Greece32

0.1%

Italy/Spain

116

0.9%

(16)

Italy/Spain/Chile

5,595

2.8%

Geothermal plants

0/39

-

-

-

Thermoelectric plants

2/9

Italy

28

0.4%

Hydroelectric reservoirs

135/1,096(17)

Presence of power plants in protected areas – by Country
Renewable and thermoelectric power plants
Countries

Hectares (ha)% in protected area of the total area occupied in the Country

Italy

3,738

19%

Spain

1,986

8%

32

6%

Chile

15

0.03%

Total

5,771

2.3%

The number of generating plants situated within protected areas (IUCN I-IV) remains unchanged since 2013, as no
new plants have been built in these areas. The presenceof power generation assets in protected areas mainly refers to hydroelectric plants which were largely built before
the 1970s (in many cases before the creation of protectedareas) and which are managed according to basin management plans shared with the authorities and which promote the conservation of local species. Notable examples
are the multi-year ENDESA-bats project, developed voluntarily in the autonomous Spanish provinces of Catalonia,
Galicia, Andalusia and Aragon through the study and monitoring of the bat populations that inhabit the tunnels ofhydroelectric plants and infrastructures. This project aims
to improve the knowledge and conservation of cave bats,
their ecological needs and their relationship with the operation of hydroelectric plants, through study and monitoring campaigns, using new cutting-edge methods andtechnologies such as automatic monitoring by means oftime-lapse photography (photo-trapping) and ultrasoundrecordings. Through the collation of data, Enel carries out
various actions to adapt its plumbing systems so that they
promote bat colonies, including the air conditioning oftunnel entrances, the targeted positioning of shelter boxes and a reduction in brightness at a number of points thatare critical to the bats.

GreecePresence of distribution infrastructure in protected areas as at 2022 – by technology
Technology

Hectares in protected areas (ha)Primary and secondary substations% in protected areas of the total
occupied by the asset(18)

28

1.1%

High and medium voltage lines

13,769

2.8%

Total

13,7972.8%

The countries in the Enel Grids perimeter with the highest
proportion of assets present in protected areas are Spain,
Italy and Brazil. Most of the Enel Grids infrastructure wasbuilt before the 1970s, in many cases before the creationof protected areas. In cases where the infrastructure falls
within a protected area, Enel creates the best solutions

to mitigate 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 (IUCN I-IV).

(15) 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.
(16) The figure represents individual reservoirs, not hydroelectric power generation plants.
(17) The figure includes plants being decommissioned.
(18) Out of the total of HV and MV lines.

326

Sustainability Report 2022

1

Letter to stakeholders

Technology

Country

Refurbishmentof existing
Colombia
HV line2

We empower sustainable progress

Plant

New Hope Indumil

Refurbishmentof existing
Colombia
HV lineZipaquirá Ubaté

HV linemaintenanceCasimiro de
Abreu/Rio
TabicumBrazil/Rio

3

Materiality analysis

Land occupation(ha) in protected Critical species
areas
impacted4

Our performance5

Appendix

Habitat

Biodiversity projects

3

Bromeliaceae(Tillandsia spp.),
Orchidaceae(Epidendrum
secundum)

ForestRescue, translocationand safeguardingof 56 specimensof epiphytic plants
Actions for rescue and(orchids andtranslocation of epiphytic
bromeliads)
flora

22

Native and nonnative plants
belonging todifferent forest
species(Juglans,
Quercus, Fuchsia,
Trichanthera spp.)

ForestPlanting to offset
trees removal andvegetation clearance

Schinus, Albizia,
CordiaForest1.5

Planting to offset
trees removal (about
600 specimens)

Reforestation intervention

Reforestation intervention(clearing, digging holes,
planting)

Conservation of natural capital

327

Biodiversity project
to protect the huemul (Chile)
The huemul (Hippocamelus bisulcus) is a species ofdeer found in the area of influence of the Ñuble National
Reserve, a forest reserve located near the hydroelectric
plants located in the Laguna del Laja. It is a native species
that is endemic to Chile and an emblem of the country,
and is at risk of extinction according to the Red List of
Threatened Species compiled by the International Union
for Conservation of Nature (IUCN). The huemul population
located in Los Nevados de Chillán in central Chile isvulnerable due to its small size and highly fragmented
distribution. Since 2018, Enel has participated in a
multidisciplinary project led by the Chilean Ministry of theEnvironment to develop and implement the “Biodiversity
project to protect the huemul”, which involves defining aplan for the restoration, conservation and management of
the huemul population, with a view to reducing threats tothe species and increasing protection measures throughhabitat restoration and conservation. In February 2022,
the plan was approved by the Chilean Ministry of theEnvironment, recognizing Enel’s contribution to conserving
this species and preventing the risk of its extinction.

Eagle owl conservation
project in Catalonia
In the first half of 2021, a project was launched in
Catalonia (Spain) to monitor and conserve the eagle owl,
which is the largest nocturnal bird of prey in Europe andwhose conservation is under threat. Indeed, in Spain it isincluded in the “List of Wild Species in Regime of Special
Protection” and in Catalonia it is listed as a protected
species.
The project involves the adoption of specific measures toavoid the birds being killed by medium- and low-voltage
lines, an initiative that is part of the voluntary projects ofthe Endesa Biodiversity Conservation Plan, developedwith the Birding Natura company. For several weeks, alive webcam was used to display real-time activity in anest in the plain of Lleida, in the region of Les Garrigues.
In addition, radio tracking transmitters were placed on 6
eagle-owl chicks, tracking a total of 6 chicks and 6 adult328

Sustainability Report 2022

birds. This measure provides information about their flightpatterns during a period of one year, in order to identify
and analyze the decisive factors in their development.

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3

Biodiversity Significance:(19) this qualitative indicator
makes it possible to classify power generation plants according to the importance of biodiversity present in theirvicinity (high/medium/low). The methodology therefore
makes it possible to identify priority sites for the protec-

Sites of high biodiversity significance/
total plants by technology

Materiality analysis

4

Our performance5

Appendixtion of biodiversity in order to ensure proper management
to mitigate potential impacts. Also in this case it should
be noted that most sites of high significance are related
to hydroelectric plants, generally infrastructures built inmountain areas and present in the locality for many years.

19 / 161

66 / 266

541 / 1,096(1)39 / 91(2)0 / 39(1) The figure represents individual reservoirs, not hydroelectric power generation plants.
(2) The figure includes plants being decommissioned.

In 2022, 4 new power generation plants were built in areasof high biodiversity value, 2 fewer than in 2021, including
3 in critical habitats and 1 in areas containing species at

Technology

Solar

Country Plant

Spain

Sol deCasaquemada

Land
occupation
(ha)

77

SignificanceCritical habitat

risk of extinction, for which action plans were developed torestore habitats and protect species.

Critical species
potentially
impacted
Nyctalus
lasiopterus
Rhinolophus
mehelyiOtis tarda
TetraxHabitat

Biodiversity projects

Grassland

Installation of nests, perches,
insect boxes and bird feeders

Solar

Spain

Torrecilla118

Critical habitat

Triturus boscai
Aquila adalberti

Wetlands andGrassland

Habitat improvement foramphibious reptiles and otherfaunal groups: restoration ofponds to promote biodiversity
Habitat improvement for wild
rabbits in the Francisco Pizarro
node
Improvement of habitats andshelters for birds of prey

Solar

Spain

Can Lloreta

6

Critical habitat

Olea europaea

Grassland

Restoration of degraded area

9

Endangered
species

No endangered
species mapped in
the project area

Wetlands andGrassland

Monitoring of birds and bats: baseline definition and species
conditions;- impact monitoring before andduring construction

Wind

Spain

Tico

Presence of endangered species near plants/assets:knowledge of protected species potentially present in thevicinity of assets is important in order to evaluate the actions needed to reduce the risk of interference by Enel assets. This type of mapping is carried out for all infrastruc-tures for which biodiversity projects are developed andincludes both flora and fauna species. The summary of thismapping is presented in the infographic table of biodiversity projects.

(19) 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 endangered species, according to the methodology developed andadapted by UNEP-WCMC, Conservation International and Fauna & Flora International (“Biodiversity indicators for site-based impacts”, 2020).

Conservation of natural capital329

• Critically Endangered (CR)• Endangered (END)• Vulnerable (VUL)• Near Threatened (NT)• Least Concern (LC)

Project typeCountry

Argentina

No. ofprojects

3

Mandatory Voluntary2

No. of species on the IUCN Red List

Researchandof which
Conservation Restorationothervoluntary Monitoring(species)(habitats) purposes

1

33%

1

1

-

Group

1

CR

EN

VU

NT

LC

Total

-

-

-

-

-

-

1

9

36

58

285

389

Brazil

46

38

8

17%

16

7

21

2

Birds;
Mammals;
Fish; Plants

Chile

27

12

15

56%

9

6

6

6

Birds; Plants

-

-

3

3

69

75

-

2

3

5

58

68

Colombia

15

6

9

60%

4

5

4

Birds; Plants;
2
Mammals;
ReptilesGreece

2

1

1

50%

2

-

-

-

Birds

-

1

3

3

60

67

3

3

4

8

80

98

Birds; Bats;
Mammals;
Plants

-

6

14

13

46

79

Guatemala

8

-

8

100%

5

-

3

Birds;
Mammals;
Plants;Amphibians
and Reptiles

Iberia

48

8

40

83%

2

32

8

6

Ireland

1

-

1

100%

-

1

-

-

-

-

-

-

-

-

3

3

18

4

37

65

1

6

8

38

53

Italy

30

8

22

73%

6

21

3

-

Birds; Bats;
Mammals;
Plants; Fish

Mexico

4

4

-

-

4

-

-

-

Birds; Bats;
Plants-Panama

1

1

-

-

-

-

1

-

-

-

-

-

-

-

Peru

5

3

2

40%

3

2

-

-

Birds; Plants

-

-

-

1

2

3

Romania

9

3

6

67%

3

6

-

-

Birds

-

1

5

2

7

15

South
Africa

1

1

-

-

1

-

-

-

Birds; Bats

-

3

1

1

18

23

Total

200

87

113

57%

56

81

46

17

7

29

93

106 700

935

Assessment of ecosystem services: among the approaches that have been developed for some years in the scientific community to describe fully the contribution provided
by biodiversity and nature, one relates to the optimizationof ecosystem services. In this area, Enel continues to de-330

Sustainability Report 2022

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 (see the dedicated box: “Optimization of
ecosystem services in Chile”).

1

Letter to stakeholders

2

We empower sustainable progress

Evaluation study of ecosystemservices in the Fundación Huinay
Enel carried out a study in Chile to identify and enhance
the most relevant ecosystem services in natural areas
taken as a benchmark, in order to propose management
measures for their conservation. In addition to the 5
areas assessed last year (totaling an area of 10,300 ha)
which are part of the appurtenances of a number ofhydroelectric plants owned by Enel in Chile, in 2022 a

3

Materiality analysis

4

Our performance

Regulation

Cultural

Availabilityof water

Capture andstorage of carbon

SurveyEcosystem services

Appendixsurvey was conducted on a further 34,300 ha owned by
the Fondación San Ignacio del Huinay, of which Enel is afounding member together with the Pontifical Catholic
University of Valparaiso.
Ecosystem services have been classified according to
the “Common International Classification of Ecosystem
Services” (CICES) (https://cices.eu/), which selects andclassifies services through participatory methods, applying
internationally accepted standards. These are presented inthree main areas, namely: cultural services, regulating andprovisioning. The main ones are shown below:

Supplies

The significant theoretical aspect of the environmental factor has become an economic model, put into practice on
a conceptual level and tested in various environments, both5

industrial and uncontaminated, yielding useful results formaking socio-environmental decisions.

845,110 €/year
Economic value creation

The numbers
at a glance

34,311 ha
Analyzed surface

109,705 tCO2/year
CO2 capture potential

18

Ecosystem services analyzed and leveraged
for a Management Plan

Conservation of natural capital

331

Huinay – POETA Program –an example of a partnershipfor researching the impactsof climate on nature
In 2021, Fondazione Centro Studi Enel signed apartnership agreement with Fondación San Ignaciodel Huinay with the aim of developing joint projects
involving research, analysis and scientific studies. The
partnership encompasses ecological issues, management
and conservation of ecosystems and biodiversity, andfocuses on the development of the POETA program(Observation of the terrestrial and aquatic ecosystem
of Chilean Patagonia) which was launched in 2018 withthe aim of giving a scientific response to the climate
emergency in Chile and around the world. Specifically,
the program has a twofold objective: the first is toconduct long-term monitoring of the essential variablesof the climate and the terrestrial and aquatic ecosystemsof Chilean Patagonia, through a network of automatic
stations, field sampling and remote detection; thesecond is to provide, with the help of the GEOOs portal(Observational Geoportal), a freely accessible, real-timedata management and information transfer system usefulfor decision-making.

Reducing pollution
3-3

305-7

The reduction of the environmental impacts associatedwith the operation of our plants is a strategic objective
for us, pursued through the application of the best technologies available and best international practices. During2022, Enel continued its commitment on the path towards
decarbonization. However, it should be noted that, due tothe ongoing energy contingency in some countries in ourperimeter, there was an overall increase in coal-fired generation compared with 2021, particularly in Italy due to thedisconnection of energy supplies from Russia. For details
on greenhouse gas emissions, please refer to the chapter“Zero emissions target”.
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), nitrogen(20) For reference, see the chapter “Zero emissions ambition”.

332

Sustainability Report 2022

oxides (NOx), and dust. To this end, over the years numerous measures have been taken to improve the environmental performance of most of the thermoelectric plants
in the company’s fleet, beginning from best technologies
and international practices and taking into consideration
factors such as context and local priorities, the plant configuration and its potential service life.
For years, the Group has set itself important objectives toreduce specific emissions of pollutants emitted into theatmosphere by 2030. In line with the SBTi certification process with respect to the Group’s GHG emissions, which
involved revising the 2017 targets and baseline net of asset deconsolidations as at December 31, 2022,(20) the 2017target values and the baseline for the main environmental
indicators were also revised. In particular, for emissions ofpollutants into the atmosphere, the new targets include:1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Objective of reducing our main emissions(vs 2017 baseline year)
Recalculated
Dusts

-60%
0.005 g/kWh

eq

SO2

-85%
0.05 g/kWheqStarting from this year, the target of reducing Hg emissions from coal-fired thermoelectric plants by 100% compared to the year of reference will also be introduced.(21)Pollutant reduction trends and targets are consistent
with the Strategic Plan and with the Group’s decarbonization objective.
Emission measurements are carried out in compliancewith each Country’s regulatory framework and, in the
majority of large plants, a measurement system is usedthat can assess compliance with the limits in real time. Its
reliability is guaranteed by accredited certifying entities
and through assessments carried out by inspection authorities.
In 2022 there was a slight decrease in NOx emissions, in2
1
bothand specific terms,
linked toprogress
the concomOur sustainable
Letterabsoluteto Stakeholders
itant lower overall generation of gas and CCGT plants.

NOx

-70%
0.16 g/kWheq

By contrast, SO2 and dust emissions are in line with lastyear. In particular, specific emissions of SO2 totaled 0.07
g/kWheq (in line with 2021, which was 0.07 g/kWheq),
NOx emissions 0.32 g/kWheq (-8.6% compared with 2021,
which was 0.35 g/kWheq) and dust 0.005 g/kWheq (in linewith 2021, which was 0.005 g/kWheq). For mercury emissions, the value for the year 2022 was 75 kg of Hg, down
81% compared with 2017. For these emissions—whichhave also always been subject to constant monitoring
and reduction in all plants of the coal-fired thermoelectric park through the adoption of the best available andtechnologically applicable abatement techniques—aspreviously stated, the target value of 0 kg of Hg (-100%)by 2030 was set, in line with the expected closure of all
3
4
5
coal-fired
plants by 2027,
whereasthe value set for
2025
Materiality
analysis
Ourperformance
Appendix
is 14 kg of Hg (-96% vs 2017).

SO2 (g/kWh)NOx (g/kWh)0.55(1)0.32(2)0.29-70%
vs 20170.36(1)-85%
vs 2017

0.16

2017

2022

2025

target 2030

2017

0.07(2)

0.07

0.05

2022

2025

target 2030

Dusts (g/kWh)-60%
vs 20170.013(1)2017

0.005(2)

0.006

0.005

2022

2025

target 2030

(1) Values recalculated net of corporate deconsolidations as at December 31, 2022.
(2)
valuesfor 2022
recalculated
net of previous
corporatedeconsolidations are 0.29 g/kWh for NOx, 0.08 g/kWh for SO2 and 0.006 g/kWh for dust.
(1) TheValoriricalcolati
al netto dei deconsolidamenti
societarial 31/12/2022.
(2) I valori per l’anno 2022 ricalcolati al netto dei precedenti deconsolidamenti societari risultano per gli NOx pari a 0,29 g/kWh, per l’SO2 pari a 0,08 g/kWh e
per le Polveri pari a 0,006 g/kWh.

(21) 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.

1

2022 Sustainability Report

Conservation of natural capital333

Using water responsibly
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 people around us who
use the ecosystem services provided by these resources,
as well as being essential for the success of our own activities, which also depend to a significant extent on the
responsible use and conservation of water resources. For
this reason, the responsible use of water has been included among the strategic objectives of our environmental
policy and is pursued using an integrated management
approach.
The preliminary analysis of environmental risks and opportunities, conducted based on the TNFD criteria andreported in the chapter “Identification of impact factors
and dependencies on nature and biodiversity”, particularly highlighted the materiality, for some energy generation
technologies, of impacts linked to the use of water resources, above all fresh water and particularly in areas withhigh water stress, where competition between natural andhuman needs is greatest.
Specifically, the main impacts are above all linked to water
withdrawal mainly for industrial purposes. Water is large-

334

Sustainability Report 2022

ly used in thermal and nuclear generation, for the coolingof thermal cycles and for operating atmospheric emission
abatement systems. Overall water requirements for generation are covered, where available, through withdrawals
from so-called “non-scarce” sources (mainly including sea
water, which is used as-is in open cycle cooling processes
and subjected to desalination to obtain industrial water)and, where necessary, from “scarce” sources, represented
by surface water, groundwater and water for civilian use. To
minimize these withdrawals, as well as maximize the restoration of internal wastewater, Enel uses, where available,
treated wastewater supplied by water management consortia.
The main dependencies are instead attributable—in addition to the aforementioned needs of thermal plants—tohydroelectric plants, which, despite having negligible water consumption, depend for their operation on the water cycle which, through rainfall and the melting of snow,
constantly replenishes surface watercourses (for further
information, see the following paragraph “Responsible andintegrated management of water catchment areas”).

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Efficient use of water resources
In 2022 total consumption of process and cooling water ina closed cycle(22) was approximately 76.0 x103 ML, a moderate increase compared to the 2021 figure(23) (73.1 x103 ML),due to the ongoing international energy contingency andthe consequently greater need for electricity generationfrom coal-fired plants (which are expected to be closed by
the end of 2027). As for the specific water requirement,(24)in 2022 it was 0.27 l/kWh, slightly down on 2021(25) (0.29 l/kWh), despite the moderate increase in consumption volumes, thanks to the simultaneous growth of the renewablegeneration park.
Enel is constantly committed to progressively reducing thespecific need for water for its plants and assets, throughthe efficient use of water in existing thermal plants, theevolution of the energy mix towards renewables, and theprogressive reduction of generation from fossil fuels.
Among the efficiency measures, particular attention is paid
to maximizing the recovery of process wastewater leaving

treatment plants and to measures to increase the efficiency of cooling systems and evaporative towers, by upgrading the control and recovery systems of the drains. Other
important optimization interventions concerned the useof crystallizers,(26) a technology that allows the complete
reuse of waste water in the production cycle, eliminating
its discharges (ZLD – Zero Liquid Discharge plants). Finally,
great importance is given to the reuse of rainwater collected in plant areas, which cannot be returned as-is to natural
receptors as it is potentially contaminated by contact withindustrial surfaces. This water is stored in special storage
tanks and reused in the generation processes, thus further
helping to reduce the environmental footprint of our generation sites.
Measures to improve efficiency in the use of water also
make it possible to minimize water effluent as well as total consumption, which are respectively 30.8 x103 ML and
45.2 x103 ML.

Water withdrawal by source 2022 (76 x103 Mega liters)

8.3%

0.1% 49.9%

Surface waterSea water
Ground water
Water from third parties

12.5%

Wastewater

29.2%(22) 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 increasein temperature, subject to authorization and continuous control in order to guarantee the absence of measurable impacts on exposed ecosystems.
(23) The total value of process and closed-loop cooling water withdrawal for the year 2021 was recalculated following the refinement in 2022 of the way in whichwater withdrawn for cooling purposes at certain nuclear power plants in Spain was calculated.
(24) Water needs are constituted by all the water withdrawal quotas from surface (including recovered rainwater) and groundwater sources, by third parties, fromthe sea and from wastewater (quota for third party procurements) used for processes 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.
(25) Value also recalculated to take into account the reclassification of the cooling cycles of some nuclear power plants in Spain.
(26) Crystallizers or SEC plants, named after Softening, Evaporation and Crystallization processes.

Conservation of natural capital

335

The new target for reducing specific fresh water withdrawal
and the focus on water-stressed areas
which are implemented locally through the adoption of Environmental Management Systems on all assets for which
the resource is material, as well as through water management plans for hydroelectric plants combined with continuous improvement programs shared with local stakeholders (dam authorities, local administrations, control bodies,
Specific fresh water withdrawal (l/kWh)citizens’ committees and NGOs). The measures of impact
mitigation and improvement, defined in the management
plans, are linked to the guarantee of minimum vital flow
0.43(1)and the protection of habitats (see the specific websitesof the Environmental Authorities of the various Countries
where the group is present).
-65%
0.23(2)
During 2022, a total of 52.7 x103 ML of fresh water was
vs 2017
0.19
withdrawn for process and closed-loop cooling uses, a
0.15
slight decrease compared with 2021 (55.5 x103 ML), withthe specific fresh water withdrawal value at group levelstanding at 0.23 l/kWh (down on last year’s value of 0.25l/kWh).
Enel also pays particular attention to the vulnerability of the
2017
2022
2025
target 2030
resource, by mapping and constantly monitoring all gen(1) Value recalculated net of corporate deconsolidations as at December
eration sites located in areas classified as water-stressed(1) Valorericalcolato al netto dei deconsolidamenti societari al 31/12/2022.
31, 2022.
(2) IlThevaloreper2022
ricalcolato
al netto
deconsolidamenti
societaripari a 0,22
value
forl’anno
the year2022
recalculated
netdeiof precedenti
previous corporate
deareas.risulta
Mapping
ofl/kWh.
generation, thermal, nuclear and reconsolidations is 0.22 l/kWh.
newable sites falling within water-stressed areas is done
in line with the criteria of GRI 303 (2018) with reference tothe conditions of “(baseline) Water Stress” indicated by the
The target set by the Group for 2030 is a 65% reduction
World Resources Institute Aqueduct Water Risk Atlas.(28)in specific withdrawal of fresh water compared with thebase year 2017.(27) As already stated, both in this case andAmong the sites mapped, those defined as “critical” arethose positioned in water-stressed areas and which proas regards the Group’s GHG emission reduction targets,cure significant volumes(29) of fresh water. For these sites,
the baseline value for 2017 was recalculated to take into
account the deconsolidations that took place in the rewhich are specifically thermoelectric and nuclear plants
porting period (see the chapter “Zero emissions ambition”).
that use water resources for process and closed-cycle
The new target of reducing specific fresh water withdrawcooling needs, water management methods and processals, turning attention to the most valuable and vulnerable
performance are constantly monitored, in order to miniwater resource, testifies to the even more explicit commitmize consumption and favor withdrawals from sources ofment to the protection of natural habitats and the needs oflower quality or which are non-scarce (wastewater, induslocal communities. The objective takes into account future
trial or sea water).
developments envisaged by the European legislation on
The percentage of water withdrawn in water-stressed arsustainability reporting standards (proposed standard EU
eas was approximately 19.3% of total withdrawals in 2022
EFRAG ESRS-E3 “Water and marine resources”), and the(23% in 2021). In particular, fresh water withdrawals in waresults of the risk and priority analysis carried out at Groupter-stressed areas amounted to 12.4 x103 ML, generated
level in line with the main international standards being deby 7 significant plants, with an 18% reduction compared
fined (TNFD and SBTN).
with the 2021 value (15.3 x103 ML), thanks to optimization
The commitment is pursued through the definition, at
actions and the reduced generation of some gas plants loGroup level, of common strategies and specific objectives,cated in areas with high water stress.
Starting this year, Enel has renewed and relaunched its
commitment to conserving water resources by adopting a
new, even more challenging target aimed at reducing specific withdrawal of fresh water.

(27) The values of which have also in this case been recalculated to take into account the corporate divestitures that have taken place in the intervening years,
as was done for CO2 emissions, waste and other atmospheric emissions.
(28) 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.
(29) Plants with withdrawals greater than 100 m3/year are included.

336

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

The specific withdrawal of fresh water in water-stressed
areas was 0.12 l/kWh in 2022 (0.16 l/KWh in 2021), lower
than the general Group value shown above, demonstrating the Company’s priority commitment to adopting, inwater-stressed areas, renewable technologies (solar andwind) that do not require significant quantities of fresh
water or, in the case of thermoelectric plants, sea water
desalination technologies.(30)
The strong expansion of the solar plant fleet, which is naturally intended for installation also in water-stressed areas,
has nevertheless highlighted potential criticalities for someof these plants resulting from the need to clean the photovoltaic panels in order to remove dust deposited on their

3

Materiality analysis

4

Our performance5

Appendixsurfaces: although such volumes are insignificant, Enel has
adopted innovative solutions for these plants aimed at
drastically reducing their water consumption (see the following box on the Roboost project).
In 2020, the Enel Green Power and Thermal Generation
division launched the WaVE (Water Value Enhancement)
project in order to reduce the use of water resources inall thermoelectric and renewable power generation sites,
and to identify improvement actions, particularly in water-stressed areas. The project continued in 2022, refining
the mapping of assets and focusing on the effects thatclimate change may have on the availability of water resources.

Roboost Project – Robotic washingof solar panels
Our solar plants are often installed in arid regions, where
they can benefit from high sun exposure. Although thewater consumption needed for washing the panels is
low compared to that required for thermal generation, it
is nevertheless important to aim at further reducing it inconsideration of the particular context of water scarcity
in these regions. This year, the methods used to wash
our photovoltaic panels were subject to a thoroughreview, which identified automation as one of the key
factors for reducing the amount of water needed tokeep the systems efficient.
In this area, Enel is developing its own “Roboost”
program of new solutions that use autonomous robots
to clean the photovoltaic panels in a fully automatic way
without using water. The expected water saving is 5 l/
MWh. Initial trials were carried out at the Totana plant in
the Spanish region of Murcia. Here, robots supplied by
an Italian startup have already been used successfully,

helping to reduce the water consumption needed tokeep the panels efficient in what is one of Spain’s mostarid regions. The installation of other robotic systems isbeing planned, with the participation of other suppliers:
one of the first countries involved will be Chile, where
all our solar plants are located in desert regions withhigh water stress, and where saving water resources istherefore of paramount importance. Being completely
electric, the autonomous robots also avoid generating
any greenhouse gas emissions during the panel cleaning
operations.

(30) The quantities of fresh water withdrawn and the energy generated in water-stressed areas are calculated taking into consideration both thermoelectric andrenewable plants located in these areas. In the case of renewable plants managed in geographical clusters that include areas with different levels of water
stress, the estimates of the previous quantities were made in proportion to their generation capacity.

Conservation of natural capital

337

WaVE Project – Reductionof drinking water use in Peru
Enel pays great attention to the use of drinking water in
its industrial processes. Where, due to particular local
constraints or contingent situations, its use is absolutely
necessary, maximum effort is expended to reduce or
eliminate it in the near future.
During 2022, the Malacas gas plant in Peru replaced its
old turbine burners with more modern “Dry low NOx”
type burners. These enable nitrogen oxide emissions
to be reduced even without the need for injectionof demineralized water, which was being produced
using water from the municipal aqueduct. The saving
obtained from this intervention was approximately 60
thousand m3/year of drinking water, equivalent to theannual requirement of a small community. The social

benefits of reducing competition for the use of civil
water infrastructure are therefore significant for the local
community, given the scarcity of water resources.

Optimization of liquid
wastewater treatment
Downstream of internal recoveries and reuses, wastewater
discharged from the plants is returned to the surface water
body. Discharge always takes place downstream of a treatment process that removes any pollutants present to alevel where they will not have a negative impact on the receiving water body, in compliance with the limits provided

for under national regulations and by operating permits.
The potentially polluting substances present in our drains
mainly consist of metallic species (Fe, Al, Si, Ca, Mg) in solution or, to a lesser extent, suspended solids. There are also
no added nutrients (nitrates and phosphates), pesticides
or other substances classified as dangerous.

Responsible and integrated managementof water catchment areas
The activities of hydroelectric power plants are an important element of water management. These power stations,which do not contribute to the Group’s water consumption
in that the water withdrawn is completely returned to its
source, provide a series of additional services for the Company compared to the sole generation of renewable energies. A variety of power plants, jointly run by government
and private stakeholders, manages the water resource formulti-purpose services ranging from flood control, drinking water and irrigation and firefighting services, to the
management of river waste held by artificial dams, also in-

338

Sustainability Report 2022

cluding 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 specific programs to ensure the volumes of water required to preserve
the ecological state of rivers (minimum vital water flows).

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Managing waste
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 its generation, as well as toconstantly devising new methods of reuse, recycling andrestoration in the perspective of a circular economy ofresources, in line with the principles indicated by the new

EU proposal EFRAG ESRS E5 “Resource use and circular
economy”. These principles are further strengthened andintegrated into Enel’s operations in the Group Guidelines
for Waste Management (PL No. 473), which Enel has adopted in order to collect and share best management practices and rules developed within the Company.

The target of reducing waste from operationaland 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 reduction target previously set, linked above all to the ongoing energy transition
and to Enel’s strategic decision to bring forward the closure of its coal-fired thermal plants, which accounted forthe majority of waste produced (mainly ash and gypsum),has already been reached in the last few years (1.2 Mt in2020 and 2021, which is the target value previously set for2030).
Starting this year, this target has been made more challenging by extending it to 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 with applicable laws, authorizations
and mandatory qualification and management compliancecriteria regularly verified by Enel as the contracting company.
This new adjustment of the target reflects the principles
of extended responsibility of the waste producer, as recommended by the recently proposed EU standard EFRAGESRS 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 management of renewable plants and electricity and service distribution networks (for example, public
lighting networks) with respect to the operational processes of thermoelectric plants.
The increase in the values reported this year is therefore
attributable to the inclusion of O&M waste produced andmanaged by our contractors, mostly consisting of excavated earth and rocks and inert materials from civil and road
construction and demolition, which in some main countries, including Italy, are classified and managed as waste
and entirely destined for recovery.

The new 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 from O&M activities (Mt)
6.7(1)

3.4(2)

2017

2022

-55%
vs 2017

3.0

target 2030

(1)
Valuescalcolati
calculated
netoofdeconsolidationsat December(1) Valori
al nettdeicorporate
deconsolidamenti
societari as
al 31/12/2022.
2022.per l’anno 2022 ricalcolato al netto dei precedenti deconsolidamenti societa(2) Il31,
valore(2) The value for the year 2022 recalculated net of previous corporate deconsolidations is also 3.4 Mt.

Waste produced in 2022 amounted to 3.4 Mt (corresponding to -50% compared with 2017), a moderate increase
compared to that recorded in 2021 (3.1 Mt, also recalculated to include waste produced in O&M activities by contractors), mainly as a consequence of the increase in coalfired thermoelectric generation in some countries, mainly
including Italy, following the ongoing international energy
contingency.
The vast majority of waste produced (98.3%) is accounted
for by waste classified as non-hazardous and mainly consisting of inert waste from construction and demolition,coal ash and excavated earth and rocks. In particular, pro-Conservation of natural capital339

duction of ash from coal and gypsum from desulfurization,
which is expected to be completely eliminated by 2030 following the planned decommissioning of coal-fired plants,

was respectively 1.02 Mt in 2022 (52% vs 2021) and 0.11 Mt(57% vs 2021).

Waste produced by O&M activities (3.4 Mt)

0.8%
1.3%

31.7%

Inert construction and demolition waste
Coal ash
Excavated earth and rocks

1.7%
6.0%

Gypsum and sludge from desulfurization
Industrial waste
Waste equivalent to urban waste
Other waste

30.3%
28.2%
The overall percentage of O&M waste sent for recovery
totaled 84.4%. The commitment to a continuous increasein the percentile recovery of waste produced is essential for an effective transition towards a circular economy
that minimizes the exploitation of natural resources, inaccordance with the objectives of sustainable development and reducing the Company’s environmental impact
and dependence on ecosystem services. Excavated earth
and rocks (94.6%) and construction and demolition waste(86.9%) were recovered almost in their entirety, deriving
mainly from the maintenance of power grids as well asof generation plants. Process waste from thermoelectric

generation was also recovered to a significant extent, including coal ash and desulfurization gypsum, which werereused in building works to produce cement, concrete andbricks according to specific technical and environmental
control requirements. In particular, the percentage sent forrecovery was 80.4% for coal ash and 88.3% for desulfurization gypsum, improving on the results of the previous
year (respectively 67% and 81% % in 2021). Finally, industrial
waste deriving from the maintenance of generation plants
and electricity grids was mainly destined for recovery(88.1%), as was an even higher percentage (95.6%) of WEEE
and metal waste, including iron, copper and aluminum.

Waste produced by construction site activities
The objective of reducing waste produced by the operating and maintenance activities described above does not
currently include waste deriving from the construction of
new renewable plants and the demolition of thermoelectric
plants at the end of their life, as these flows are specificallylinked to the Group’s strategy of decarbonization and energy transition. Above all, these activities are linked to thegeneration of inert materials, such as excavated earth androcks, 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 techniquesof the structures and dedicated management procedures

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are adopted to maximize their economic value. For moredetails, see the chapter “Circular economy”.
In 2022, waste produced on the construction sites of new
renewable plants (wind and solar) and by the 3SUN Gigafactory totaled 0.09 Mt, which consisted almost exclusively
of non-hazardous waste (99.9%). The same activities also
produced 3.31 Mt of excavated earth and rocks, which wasentirely reused in situ.
By contrast, waste from the end-of-life demolition of thermoelectric plants totaled 0.39 Mt. Waste from these activities consisted of 92.3% non-hazardous waste (mainly
excavated earth and rocks, inert waste from construction
and demolition and industrial waste, including mainly metals) with average recovery values of 76%, rising to 93% for1

Letter to stakeholders

2

We empower sustainable progressthe 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 (see also the paragraph on the circularity of resources).
Finally, with reference to the specific redevelopment siteof the Enel headquarters in Viale Regina Margherita (Rome,

3

Materiality analysis

4

Our performance5

Appendix

Italy), launched in November 2019 for a duration of approximately 40 months and involving a total area of approximately 80 thousand m2, the amount of waste produced in
2022 totaled 26.4 kt, of which 98.2% (about 26.0 kt) consisted of demolition aggregates, glass and metals, which
was entirely sent for recovery.

Improvement initiatives
Among the most significant initiatives, within the Enel
Green Power and Thermal Generation Division, the commitment made in 2020 continued with the launch of “ZeroWaste”, a global project that aims to reduce the amountof waste produced and improve the percentages of waste
recovered through the sharing of best initiatives and goodpractices implemented in the various Countries. The global
initiatives carried out in 2022 continued, notably including
the commitment to engage Enel’s contractors throughawareness-raising and training initiatives and the adoptionof contractual instruments to incentivize waste recovery.
Particular attention was also paid to wind and solar technologies, in order to identify possible strategies for the reuse of components that are subject to replacement anddisposal at the end of their life, mainly starting from 2030.
As regards wind technology, the “Wind New Life” project
for the recovery of wind blades is continuing. Among thepossible alternatives for their recovery, the project has also
considered the processes of reusing and recovering energy from the turbine blade materials for concrete production. Meanwhile, the “Photorama” project is dedicated to
the reuse of photovoltaic panels, focusing above all on themost valuable and difficult-to-source materials, which arepotentially reusable for the generation of new panels.
As regards waste produced by grid management activities, in continuity with the programs launched in previous
years, Enel is continuing in its commitment to restoring
hazardous and non-hazardous special waste, especially as
regards dielectric mineral oils used as insulators in electrical equipment, which is delivered to authorized companies
for regeneration or, if this option is not feasible, destined
for waste-to-energy processes. Also ongoing are the initiatives launched in the various countries for the sustainable replacement of first-generation smart meters and therecovery of their constituent materials.

For further initiatives, see the chapters “Circular economy”
and “Sustainable supply chain” in this document.
As part of the provision of products and services for energy efficiency, in 2022 Enel X Global Retail continued its
commitment to a sustainable approach that extends tothe entire value chain, by further extending the requirement for its suppliers to provide transparent and comparable information on the environmental impact of thematerials and products they supply. In particular, for ownbrand products, Enel X Global Retail adopts the Extended
Producer Responsibility (EPR) model, which also includes
the post-consumer phase, by adhering to collective WEEE
collection systems in all the markets in which it operates,
as well as collection of batteries and packaging, and bylaunching end-of-life management initiatives for marketed products and optimizing their design with a viewto maximizing their reuse and recycling. These initiatives
notably include:• the ALVA (ALternativas de VAlorización) project in Spain,
aimed at improving performance in the management ofwaste from electrical and electronic equipment (see thededicated box);• the agreement between Enel X Italia and CdC RAEE(Centre for the Coordination of Waste from Electricaland Electronic Equipment), whose partnership enables
B2C distributors/installers contracted with Enel X Italia
to use the WEEE collection service free of charge, as wellas providing greater control/traceability of WEEE along
the entire supply chain to the plants where they are ultimately destined;• a similar project in Peru, but applied to B2G public lighting, with the objective of both extending the life cycleof light bulbs that are still functional and the restoration
treatment of spent bulbs through the WEEE RECOLECC
consortium in order to recycle the raw materials, thereby
creating value and reducing greenhouse gas emissions.

Conservation of natural capital

341

Spain – ALVA Project(ALternativas de VAlorización)
With the aim of applying the principles of the circular
economy and in compliance with environmental regulations on waste, Enel X Global Retail has developed a projectfor reusing and recycling electrical and electronic equipment (EEE) products or components taken back from customers.
The project applies to electronic devices marketed by Enel
X which are subject to return, in the case of rentals, or replacement of EEE installed at the customer’s premises (1for-1 takeback). The objective of the project is to ensure
virtuous management and traceability of products/waste
in order to prioritize EEE reuse operations over disposal.
The project engages installers, a qualified repair company and the ECOTIC consortium in managing waste electrical and electronic equipment (WEEE) in order to improve
circularity, by providing full traceability of the installation/
replacement process, and to increase the reuse and restoration percentages of WEEE in treatment plants, and consequently to reduce CO2.

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2022 results

61

installers
who have signed theagreement with ECOTIC

103

t WEEE collected(93–96% material
recovery / 1–3%
energy recovery)

119

t CO2
equivalent saved

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Appendix

Protection of soil, subsoil
and groundwater
3-3
Enel is committed to the continuous application of themost advanced technologies available and best practices
in order to minimize the possible environmental impacts
deriving from its activities, using international standards
as a benchmark even where the required environmental
protection is less stringent. Among the areas of prevention, the highest 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 are present in all Countries.
The protection of the environment 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 will
be used in the project 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 required by
the Environmental Management Systems to prevent andminimize 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 ofenvironmental 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 made safe and prior to them being dismantled and the area reassigned for new development
projects, Enel proceeds to verify further the environmental quality of 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 the event of potential contamination phenomena, characterization of the environmental matrices in the areas
potentially affected and, if necessary, implementation ofsafety measures 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 mitigate further the risk connected to the detention and consequent potential uncontrolled release of substances that
can have an impact on the environment, numerous projects have commenced for their progressive substitution,for example, verifications under way on the use of vegetable (hence biodegradable) oil, replacing the traditional
dielectric oil of mineral origin.
Within the context of the energy transition launched byEnel, particular importance is given to projects for converting decommissioned plants, with the aim of hosting newrenewable generation and energy storage plants, in orderto reuse the industrial areas, some common parts of theplant, and the main infrastructures. In this way it is possible
to reduce the environmental impacts deriving from demolition and new construction activities, as well as the consequent social and economic impacts on the surrounding
communities and stakeholders. In order to optimize themanagement of plant decommissioning projects, in 2021
Enel adopted dedicated Guidelines (“Environmental issues
management in power plants decommissioning”), withthe purpose of guaranteeing a standardized approach toidentifying, preventing and managing environmental aspects related to the decommissioning of power plants.
These Guidelines provide global guidance on applying best
management practices in relation to all environmental aspects, including soil and groundwater management.
With a view to continuous improvement and minimizing
the possible environmental impacts deriving from decommissioning activities, at the end of 2022 a further setof Guidelines was also issued (“Sustainable Repurposing
Model”) in order to ensure the increasingly sustainable
end-of-life management of plants (see the dedicated box
below).

Conservation of natural capital343

Habitat restoration to protect
native species
The area affected by the environmental restoration project was previously used to store combustion ash from the“Eugenio Montale” thermoelectric plant in La Spezia, Italy. Starting from 2020, following a project authorized by
the competent bodies, a waterproof top cover (cap) was
created for the two reservoirs on the site, aimed at making them permanently safe while also guaranteeing landscape restoration by planting and grassing the area. The
capping activity, completed in July 2022, was carried out
in conjunction with a habitat restoration project aimed at
restoring and maintaining biodiversity in the area, whichis considered “core”, due to the presence of Rana dalma-

Sustainable
Repurposing Model
The sustainable repurposing model aims to promote thestandardized adoption of sustainable practices during all
end-of-life disposal activities of plants and assets. The aim
is to create synergies with the future redevelopment of thesites, while maximizing the positive environmental and social impacts of the entire process.
To achieve and monitor these objectives, a set of guidelines, a catalog of sustainable practices and specific KPIs
have been created. In order to launch and promote themodel, some pilot projects on decommissioned plants
have been launched in Chile, Spain and Italy. The contin-

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Sustainability Report 2022

tina frogs (a protected species included in the IUCN National Red List).
The habitat restoration project envisaged the recreationof a semi-open humid environment (azonal Pharagmites
australis reed bed habitat) fed by a channel that conveys
runoff surface water from the reservoir caps, in addition
to planting native arboreal and herbaceous essencescharacteristic of submerged wetlands and humid andperhumid environments. This habitat, in addition to providing a safe place during the reproduction period for a
species in need of protection such as Rana dalmatina,
also plays an irreplaceable ecological role by providing aplace of rest, shelter and food for numerous other animal
species.
For further details, please refer to the chapter “Our commitment to a just transition: leaving no one behind”.

uous monitoring, through KPIs, of environmental performance on important aspects such as the reductionof atmospheric emissions, the recovery and recycling ofmaterials and waste, the efficient use of water and theimprovement of soil and biodiversity will allow us to continue on our path towards an increasingly efficient energy
transition. The proposed model includes, in particular, theidentification and application of sustainable principles andpractices related to the management of the environmental
matrices of soil and groundwater, such as the restorationof reclaimed areas in compliance with the morphological,
vegetative and landscape characteristics of the surrounding area, as well as the creation of habitats aimed at promoting biodiversity and ecosystem services.

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Materiality analysis

4

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Appendix

Energy efficiency
3-3

302-1

302-3

Energy efficiency in production processes
For Enel, the efficient use of energy is a constant commitment that extends to the entire value chain and which is pursued through the implementation of operational excellence
programs across the different Business Lines, both for operations and in buildings. In particular, targeted interventions
are aimed at maximizing the efficiency of power generation
plants as well as improving the operational efficiency of distribution networks.
Energy consumption is mainly represented by fossil fuels, tooperate thermal power plants (with coal accounting for 19%
and natural gas 45% in 2022), and by uranium, to operate
nuclear power plants (27%). By contrast, a smaller amountof energy consumption is related to the operation of power
generation plants relying on renewable sources (biomass andgeothermal). Total direct consumption of energy for electricity generation in 2022 amounted to 1,108,069 TJ (26.5 Mtoe),
which was basically in line (0.8%) with the energy consumption of fuel recorded in 2021 as a result of the increase inthermoelectric generation from coal (64,571 TJ, up by 46%
on 2021), as well as from diesel and nuclear to a lesser extent, replacing generation from natural gas (-79,774 TJ, down
15% on 2021). The Group’s energy intensity, which provides ameasure of its operational efficiency, was 4.81 MJ/kWheq in
2022, slightly down on the previous year (-0.36%). Activities
to optimize the grid structure continued in 2022, allowing
for a significant reduction in grid losses. These include pro-

gressively reducing single-phase power lines, constructing
additional power lines to alleviate the overload on existinglines, using low-loss transformers, boosting the grid by using
conductors with a greater cross-section, and rephasing primary transformer substations. Finally, the realization of new
1
transformer
stations that help2reduce
the lengthof low-volt- 3 Materiality
Our sustainable
progress
Letter to Stakeholders
age lines, which are characterized by higher levels of loss.

Consumption of primary energy fromrenewable and non-renewable sources(,000 TJ x103)
2,000

1,000

55
949

0

2020

55

55

1,045

1,053

2021

2022

From non-renewable sources

From renewable sources

Conservation of natural capital

345

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 acrossour businesses were strengthened and consolidated in
2022 to support commitments towards clean electrification. In 2022, the interventions carried out by the Enel X
Global Retail Business Line in relation to efficiency, technological innovation and reduction of CO2 emissions inthe sectors in which the division operates, were strengthened and consolidated. In the public lighting sector, work
performed in 2022 by Enel X Global Retail in Italy, Spain,
Chile, Colombia and Peru resulted in cumulative savings ofapproximately 177 GWh. In public transport, Enel X Global
Retail participated in the commissioning of more than 500
new electric buses in Chile, Colombia, Spain, Italy and theUnited Kingdom in 2022.
For its B2C (Business to Consumer) customers in Italy,
Spain, Chile and Romania, in 2022 Enel X Global Retail in-stalled about 78 thousand energy-efficient products, including condensing boilers, air conditioners, air-to-water
heat pumps and photovoltaic plants (some with storage
systems), while in the B2B (Business to Business) sector, thephotovoltaic plants managed by Enel X Global Retail for its
customers in Brazil, Spain, Italy, North America and Korea in
2022 made possible a generation of distributed renewableenergy equal to about 42 GWh, in addition to the energy
savings obtained by the cogeneration and trigeneration
plants managed by Enel X Global Retail in Italy and Spain.
Overall in 2022, Enel X Global Retail’s efficiency and electrification products and services enabled its customers to
avoid the emission of approximately 130 thousand tons ofCO2, equivalent to an environmental benefit of more than
7 million trees per year, values calculated by applying algorithms validated by an internationally recognized certification body according to the principles identified in the UNI
EN ISO 14064-2:2019 standard.
For further details, see the chapter “Clean electrification”.

Environmental legal disputes
2-27

2-4

At December 31, 2022, the number of legal proceedings
pending was 168 across the whole Group. The main environmental disputes related to Italy, Latin America and

Iberia. The amount of fines imposed or paid in 2022(31) wasapproximately 1.8 million euros. In addition, 22 non-monetary sanctions were issued.

(31) The relevance threshold for fines is 10,000 USD, therefore only sanctions that individually exceed this amount are reported.

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Letter to stakeholders

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3

Materiality analysis

4

Our performance5

Appendix347

Managing human rights

Material topics (I level)

Doublemateriality

Plan

SDG

• People management,
development andmotivation• Sustainable supply chain

Human rights

Managing human rights

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

Activities

2022 results

16

Definition of a strategic framework
relating to the management of
human rights in business operations,
implementation of the ensuing
action plans, analysis of the results
and tailoring of the inputs to update
the initial framework including
any evolution of the internationallandscapeDefinition of framework achieved
through update of existing
framework to keep abreast of
the evolution of the internationalreference frameworks and of
our operating, organizationaland managerial processes

17

Progress2023-2025 targets

Tag

Implementation of action plans
resulting from the definitionof the strategic framework on
human rights management inbusiness operations, analysis ofresults, tailoring of the inputs
and updating of the strategic
framework (also in view of theevolution of the international
context)

E
S
G

For further information on the targets included in the Sustainability Plan, please refer to the Human Rights Content Index.
Goals
Industrial

E Environmental

G Governance

T Technological

I

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable348
2

Sustainability
Report2022
2022 Sustainability
ReportAchieved

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Materiality analysis

4

Our performance

Managing human rights

5

Appendix349

Managing
human rights

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Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

4

OUR DUE DILIGENCE PROCESS

Our performance5

Appendix

ACCESS TO REMEDYManaging human rights
2-12

2-23

2-24

2-25

2-26

3-3

407-1

Our pledge to respect human rights is the guiding principle that permeates all our activities, and it is fully integrated into our corporate purpose and values, since we belong
to the territory, and we are an essential element in the lives

408-1

409-1

411-1

413-1

413-2

418-1

of people, businesses, and society at large.
We have adopted the approach of the UN Guiding Principles on Business and Human Rights, setting up a humanrights management system based on three pillars:

OUR COMMITMENTOUR DUE DILIGENCE
PROCESSACCESS TO REMEDY

It includes:

It includes:

It includes:• our strategic approach to human•rights in business operations

our public commitment: the Human
Rights Policy• embedding of the commitment into:• operating policies and procedures• training topics and practices• our governance• identification of salient issues• management of salient issues• relationship with stakeholders(workplace, procurement andbusiness relationships, communities,
customers and cross-cutting andspecific issues)• our commitment to provide

appropriate remedy in case of impacts• grievance channels information• redressing in legacy projects

Our commitment
2-24

Our strategic approach
Protection of the environment and natural resources, climate action, and contribution to a sustainable economic
development are strategic factors in the planning and development of our operations, alongside our broader commitment to accelerate the decarbonization and electrification processes, in accordance with the Paris Agreement
and the United Nations Sustainable Development Goals.
The mitigation of the effects of the increasing environmental degradation and of climate change cannot takeplace without taking into account their social impact andthat is why we believe that transition to net zero should befair and inclusive.

We measure our commitment by acting in such a way thatthose who work with us do so in just and favorable conditions, that their health, safety and wellbeing are pivotal tocreating value and that the rights of the communities withwhich we interact, as well as those of our customers, arerespected.
A strategic approach aimed not only at mitigating risks ina reactive way, but at managing them proactively by identifying the relative opportunities and exploiting the potential
for growth and the creation of shared value.

Managing human rights

351

Ernesto Ciorra
Chief Innovability® Officer

Respecting Human Rights
is a fundamental element
to empower
sustainable progress.

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Sustainability Report 2022

We promote the growth of a constructive dialogue that can really help in an effective way - with tackling the challenges brought by the social
impacts of decarbonization strategies in line with the Paris Agreement,
and we have committed to a just transition that does not leave anyone
behind.
Continuous innovation and embedding of circularity principles arealso cornerstones for building a competitive, inclusive and sustainablebusiness model. Indeed, a sustainable business conduct based oninternational reference standards is key to unlock multiple competitive
advantages, such as increasing talent attraction & retention,
strengthening corporate resilience, meeting customers & civil society
expectations, improving access to stock & capital markets, shaping
regulation & promoting system advocacy.

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3

Materiality analysis

OUR DUE DILIGENCE PROCESS

4

Our performance5

Appendix

ACCESS TO REMEDY

Our public commitment: the Human
Rights Policy
In 2013 Enel has adopted a Human Rights Policy, approvedby the Board of Directors, which has been updated in 2021
to keep abreast of the evolution of the international reference frameworks and of our operating, organizational andmanagerial processes.
The Human Rights Policy leverages commitments alreadyincluded in several codes of conduct like the Code of Ethics (adopted as early as 2002), the Zero Tolerance of Corruption Plan and the global compliance models while atthe same time strengthening and expanding their content.
The content of our policy refers to internationally recognized human rights as defined in the International Bill of
Human Rights and in the International Labor Organization conventions underlying the Tripartite Declaration of
Principles concerning Multinational Enterprises and Social Policy and applicable to business practice.
The commitment also reaches out to:• the 10 Principles of the Global Compact that we havejoined as an active member since 2004;• the United Nations Pledge Letter we signed in 2019, in
which the United Nations asked companies around theworld to commit to a just transition and the creation ofdecent green jobs (for further details, please refer to “Ourcommitment to a just transition: leaving no one behind”);• the United Nations “Protect, Respect and Remedy”
framework, set out in the guiding principles on businessand human rights, and the OECD guidelines for multinational enterprises, two of the main international soft law
reference standards.
The policy addresses employment practices and community relations and society through 12 principles. Specifically, they establish our rejection of practices like modern
slavery, forced labor, and human trafficking, to name a few,
and our commitment to promoting diversity, inclusion, andequal treatment and opportunity, guaranteeing that peo-

ple are treated fairly and valued for their uniqueness, aswell as focusing on protection of the environment 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 our business activities and relationships, as wellas on the outcome of a consultation held with relevant
stakeholders (people within our organization, as well as
suppliers, human rights experts, think tanks, NGOs, other companies) held in line with the ‘’UN Global Compact
Guide for business: how to develop a Human Rights Policy’’.
Listening and taking account of stakeholders’ perspectives in internal decision-making is, indeed, an integral partof our commitment to respecting human rights. For further
details, please refer to “Materiality analysis process and results for 2022”, “Our commitment to a just transition: leaving no one behind” and “Engaging communities”.
Our commitment extends to supporting heightened responsible business conduct also through European reference organizations, like Eurelectric, the utility-sector
one, through which, during 2022 we have continued toparticipate to the process concerning the development of
the draft Corporate Sustainability Due Diligence Directive(CSDDDD).
Other participations include the Solar Stewardship Initiative, launched by Solar Power Europe, the Global Alliancefor Sustainable Energy, an independent global alliance, as
well as the working groups within the Just Transition Think
Lab, promoted by the United Nations Global Compact, theBusiness Commission to Tackle Inequality (BCTI), promoted by the World Business Council for Sustainable Development (WBCSD), and CSR Europe Leaders Hub for an
Inclusive Green Deal, selected group of members of CSR
Europe. For further details, please refer to “Our commitment to a just transition: leaving no one behind”.

Managing human rights

353

Policies and procedures
Integration of the commitment across relevant internalfunctions and processes is key to prevent and mitigate
adverse human rights impacts as well as fostering decent
work, inclusive economic growth and sustainable development.

M
HU

Hereafter a summary classified by stakeholder and thematic group of the key internal policies and externalframeworks integrating our Human Rights Policy.

AN R

IGHTS PO

LIC

Y
Health and safety
Extra Checking on Site

X STRATEGYTA

Stop work

Cyber security
CH

Remuneration

A

RT

ER

OF THE P

SO

Diversity and inclusion

N

Harassment in theworkplacePhysical and digitalaccessibility

ER

Code of Ethics

Environment and biodiversity

Zero Tolerance of Corruption Plan
Anti-corruption
Global compliance programs

Enel people

Suppliers

Communities

Customers

Internal policies
Thematic frameworks

Security and human rights
3-3

410-1

National regulations generally set for security services employed to protect companies’ personnel or property thatthey are assigned only to public forces, or to private forcesin the absence of legislative provisions.
In both cases, our commitment is to promote that security
forces act in a way consistent with the applicable national laws and international rules and standards and in linewith the voluntary principles on security and human rights(principle 2.2.3 of our Human Rights Policy).
Security services providers are selected following ouroverall procurement and monitoring process during thelife of the contract and are therefore subject to the same
ESG screening and contractual clauses as any other supplier. For further details, please refer to “Sustainable supply
chain”.

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For providers included in the high reputational risk category, we also run additional checks regulated through aspecific procedure (Counterparty Analysis), a further instrument in reducing and mitigating, as much as possible,
actual or potential risks.
Overall security management is entrusted to a dedicatedfunction at Group level (Global security) which acts in coordination with relevant security functions at country level.
Main activities are collecting and analyzing information tomap potential security risk and related management, also
in cooperation with external stakeholders like reference institutions and other critical infrastructure operators.
As for protection services for Enel people travelling in
high-risk countries, providers are selected based on specific contractual frameworks managed by the Global Security function.

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Appendix

ACCESS TO REMEDY

Training
2-29
Training and awareness-raising processes dedicated toboth Enel people and business partners is a key part of embedding respect of human rights in business operations.
Each year we carry out specific training to ensure that anyone working with us is aware of the role they play in ensuring respect of human rights while doing business. Suchtraining also includes specific communication initiatives
aimed at internal and external stakeholders to foster proper understanding of the commitment undertaken throughthe Human Rights Policy.
The training is deployed in different formats and content inorder to meet every need, including:• courses on environmental protection;• courses on occupational health and safety;• courses on diversity and inclusion;• courses on relationships with communities;• courses on anticorruption;• digital training courses on issues closely linked with human rights;• training initiatives on best practices closely linked withhuman rights.

In 2022, 84% of Enel people attending courses on sustainability, confirming 2021 trend. Specifically, training hours
were equal to approximately 1.9 million, with a per capita average of 28 hours. Training on human rights totaled
some 7 thousand hours thanks to the online course thatexemplifies the key role human rights play in businesspractice through simple stories and best practice sharing.
On top of this, we run induction activities on human rights
and business to selected audiences to promote internal
awareness on our commitments and to stimulate improvement of its embedding into the operating practices. Activities for 2022 include:• a training session within the Executive Procurement
School, organized with the support of a leading university and dedicated to our global procurement talents;• a deep-dive with all our country sustainability managers;• a training session dedicated to a selection of people
working with us in renewable operations.

Governance
Respect of our commitment in terms of human rights is
an integral part of our corporate decision-making process.
We rely on an organizational and corporate governancemodel, based on principles of transparency and accountability, that sets out well-defined tasks and responsibilitiesof the main governance bodies. Namely:• the Board of Directors, acting through the Control and
Risks Committee and the Corporate Governance andSustainability Committee, which carry out preparatory
work aimed at making proposals and providing advice, 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 our Human Rights Policy,
our Code of Ethics, our Zero Tolerance of Corruption
Plan and our global compliance models. Both committees are in charge of providing recommendations forchanges to the Board for approval, if necessary, in orderto bring such procedures in line with national and international best practices and with modifications in appli-

cable laws and regulations;• the Innovability Function and, namely, the Sustainabil®

ity Planning and Performance Management and Human
Rights unit, is responsible for:– managing the positioning on human rights and ensuring that it is correctly reflected in any internal andexternal communication activity;– integrating respect of the principles included in our
Human Rights Policy in corporate processes andplanning and coordinating due diligence activities on
the related management system, with the support ofother units relevant to the process;– reporting to the Control and Risk Committee andto the Corporate Governance and the Sustainability
Committee on the implementation of the due diligence process and on the management of humanrights-related activities;– reporting annually within the Group’s Sustainability
Report how we respect human rights commitments.

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Our process of due diligence
2-23
plan to strengthen the management system that ensures
we comply with the commitments undertaken in our Human Rights Policy. Our process runs on a three-year cycle
format, and involves both internal stakeholders by country of operation and function and external ones throughhuman rights experts and key stakeholders. We have justcompleted the 2020-2022 cycle.

As required by the United Nations Guiding Principles on
Business and human rights and by the OECD Due Diligence
Guidance for Responsible Business Conduct, we have set
up a process, which we have also codified in a global internal procedure, covering the entire value chain across ourgeographic footprint aimed at identifying if any of our operating procedures and processes require an improvement

M
HU
E

LD
HO

E R S ’ E N GA G

EM

ED

EN

T

EN
CE

Perceived
risk assessment

IL

IG

AK
ST

AN RIGHTS DU

Gap analysis

Improvement plans

Implementation andmonitoring

AC

CES

S TO R E M E

DYPerceived risk assessment(identification of salient issues)
Identification of salient human rights issues allows us tobetter understand where to focus our efforts and resources for the potential impacts that require the greatest urgency, taking into account the relevant stakeholders’ perspective.
The 2020 assessment run in our countries of operation
with regard to labor, local communities, and environment-related rights involved stakeholders and experts inseveral fields, including civil society, and academic institutions. Specifically, consultations were held with direct
and indirect workers, representatives of indigenous populations and local communities, trade unions, local institu-(1)

tions and peer companies.
Outcomes of the assessment were then plotted into a human rights risk heat map based on the severity and thelikelihood of a potential violation.(1)Hereafter, a summary of the most significant results:• risks connected to bribery practices and to impact on
the environment ranked as “high-priority”;• risks connected to labor practices violations (freedomof association and collective bargaining, rejection offorced and child labor, just and favorable working conditions, occupational health and safety, diversity and inclusion) and to potential impacts on local communities

Risks are classified based on the assessment scale: acceptable risk (minimum level), risk to control, high-priority risk, high risk (maximum level).

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1

Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

4

Our performanceOUR DUE DILIGENCE PROCESS

ranked as “to be monitored”. Protection of local communities’ rights ranked higher in Latin American countries,
confirming the results of the previous cycle, given the

5

Appendix

ACCESS TO REMEDY

widespread presence of such groups in that geographical region.

4.5

4.0

Child labor
Forced or compulsory labor

3.0

Seriousness

3.5

Freedom of association
Community
4.5
Environment

Zero Tolerance of Corruption
(ZTC)

2.5

2

Occupational health and safety
Diversity
1

2

4.5

Just and favorable working
conditions

Probability

2.0
2.5

In addition, we periodically engage with our stakeholders
and sustainability experts through the materiality analysis, a process that allows to identify material topics, i.e.,the most significant impacts of the company on economy,

3.0

3.5

4.0

4.5

environment, and people, including human rights impacts.
For further details, please refer to “Materiality analysis process and results for 2022”.

Management of salient issues
Besides the identification of salient issues, our management system includes:
1. a gap analysis aimed at assessing our operating andrisk monitoring processes and identifying any potential
shortfall;
2. development of improvement plan actions to meet thegaps identified at the previous step;
3. implementation of actions and monitoring of progress.
Thanks to this process we assess 100% of the policies andoperating procedures put in place to identify the risks ofour direct and indirect operations along our entire value
chain and of our new business relations (e.g., acquisitions,mergers, joint ventures, etc.).
Hereafter, the main outcomes of the 2020-2022 cycle.

Gap analysis
Practices and policies adopted to respect human rights
across our geographic footprint were then assessed basedon the human rights potential risks heatmap (please refer
to “Assessment of perceived risk – identification of salientissues“) across relevant internal functions and processes
to identify any existing gap.
The assessment was based on the four parameters of the
UNGPs operating principles:• public commitment to respect human rights;• adoption of human rights due diligence process;• preparation of a plan of action to remedy any gaps identified by the due diligence process;• adaptation to match local context and regulations.

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This entailed interviewing the Top Management of theGroup with the broad aim to get their strategic perspectives on business and human rights and assess awarenessand perception of related risks and impacts and how they
are managed.

Results highlighted that the management system to potentially mitigate impacts is robust and should enable toadequately manage any identified risks, which considering the United Nations Guiding Principles frameworkranking definitions means management of salient issues
is adequate.

Below, a summary of key evidence:
Human Rights
Principles

Average
perceived risk

SDG

Main policies and procedures to protect human rights

Freedom of association andcollective bargaining

8

Enel is committed to respecting the freedom and collective
bargaining rights of its workers. In particular, Enel recognizes
their right to set up or join organizations formed to defend andpromote their interests; it recognizes their right to representation
by union organizations or other forms of representation, opposing
To control
any action of discrimination in the exercise of this right; it
recognizes their right to engage in collective bargaining as thepreferred instrument to establish the contractual conditions andto regulate relations between company management and tradeunions.

Rejection of forced labor

8

Just and favorable working
conditions

8

Rejection of child labor

8

Diversity and inclusion

5

Health and safety

3

System to protect
human rights

Labor practices

10

Robust

The contracts considered overall regulate labor conditions, clearly To control
defining workers’ rights (working hours, remuneration, overtime,
indemnity, benefits). Each worker is guaranteed a translated
employment contract in his/her native language. Human resources To control
management systems and procedures guarantee the absence ofminors in the workforce. Also apprenticeship projects and school- To control
work experience models are carried out.

RobustFor details, please refer to “Empowering Enel people”

To control

RobustFor details, please refer to “Occupational health and safety”

To control

RobustFor details, please refer to “Engaging communities”

To control

RobustRobustRobustCommunity and society

Community relations

1

3

4

5

7

9

10

Environmental impacts

13

For details, please refer to “Conservation of natural capital”

High priority

RobustCorruption

16

For details, please refer to “Values and pillars of corporate ethics“High priority

RobustAverage perceived risk: average perceived risk levels identified in the countries under analysis.
Reference scale of risks: 1. High risk; 2. High-priority risk; 3.
Risk to control; 4. Acceptable risk.

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The results are expressed in percentage and represent thecurrent maturity of the management systems with respect
to the specific Human Rights areas.
Reference scale of performance values: Robust (75%100%); Good (50%-74%); Sufficient (25%-49%); To be improved (0%-24%).

1

Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

4

Our performanceOUR DUE DILIGENCE PROCESS

5

Appendix

ACCESS TO REMEDY• Brazil: definition of an operating instruction to assess

Improvement plans
The residual risk identified at the previous step led to thedefinition of the necessary remedies which were then included in the improvement plan both at country and at
global level, therefore ensuring uniformity of processes
and policies across the Group’s activities.
Hereby a few examples of the actions defined.
• Italy: inclusion of the link to our Human Rights Policyin the local business development procedures of Enel
Grids;• Argentina and Russia(2): implementation of training
and internal communication activities aimed at raisingawareness on the importance of respecting the commitments included in the Human Rights Policy;

management of human rights of partners and sub-tiersuppliers;• Chile: i) implementation of a communication and awareness-raising campaign on the Human Rights Policy
aimed at all relevant stakeholders; ii) making the policy
available to all relevant stakeholders, with particular focus on those with no access to digital media (i.e., indigenous populations).
As for labor practices, the assessment revealed they areperceived as “low risk” given also the compliance of therelated control measures and processes with our internal
policies and with the main international standards. However, we identified several minor areas of improvement thatare summarized in the table below.

Human Rights Principles

Business Lines

Countries

Areas of improvement

Freedom of association andcollective bargaining

Sustainability/People andOrganization

Greece,Australia,
India, Brazil

Development of training programs on human rights aspects, with a
special focus on the relationship with social partners and definitionof working conditions during bargaining procedures

Rejection of forced labor

People and Organization/
Sustainability/
Communications

Romania,
BrazilIntegration of control procedures and definition of further remedies
in the case of intimidation and threats

Rejection of child labor

Global Procurement/Legaland Corporate Affairs

Russia(2), Chile, Intensification of training and monitoring of the supply chain
BrazilDiversity(3)Sustainability, People andOrganization

Mexico,Romania,
BrazilImplementation andmonitoring
The consolidated improvement plan for the 2020-2022
cycle includes 170 actions, covering 100% of operations
and sites. At the end of 2022, we have achieved over 80%of the plan.
Full effectiveness of the actions implemented will be assessed through the gap analysis that we will be run in 2023
when the new cycle will begin. Worth noting is that the next
cycle will be based on the refreshed Human Rights Policy
content.
As a further tool to measure the effectiveness of our human rights management system and governance structure
across operations, in 2022 we carried out an asset-level

Each action plan includes activities on the topic of disability basedon the main findings resulting from the Value for Disability projectdue diligence activity on five pilot countries: Brazil, Chile,
Colombia, Italy, Iberia.
Indeed, as instructed by the OECD Guidelines for multinational enterprises, in addition to standard assessments
an enterprise may already employ, additional internal assessments may support a deeper understanding of thepotential risks or actual adverse impacts with respect toan enterprise’s own activities.
The outcome of the analysis confirmed the main results
obtained by the overall due diligence process on the management system just described above in terms of robustness of labor practices issues and engagement with local
communities. They also confirmed the key role awarenessraising campaigns play.

(2) On October 12, 2022, the Group has closed the sale of its entire stake in PJSC Enel Russia.
(3) Diversity issues also include the assessment of aspects relating to equitable remuneration and non-discrimination.

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359

Relationships with stakeholders:
human rights in practice
2-29

The workplace
We are committed to respecting and promoting internationally recognized workers’ rights in all the countries
where we operate. This means rejecting harmful practices like modern slavery, forced labor, and human trafficking, to name a few, and promoting diversity, inclusion, andequal treatment and opportunity, and guaranteeing thatpeople are treated fairly and valued for their uniquenessthroughout the entire value chain of the businesses inwhich we operate.
All of this has also been codified into the Charter of the
Person, a memorandum of understanding adopted in Italy
in 2022 and agreed with some trade union organizations.
The Charter of the Person originates in a cultural context of transformation in which individuals are becoming
aware of the importance of human relationships as a true
engine of full realization. In the work carried out with thetrade unions we look for the first time at the worker, who
is not only and merely passive subject of protection andrecognition but an individual who, in a new awareness,
pursues a renewed balance between all its needs and inclinations.

Training and people empowerment| Upskilling and reskilling(Human Rights Policy, “Employment practices”,
principle 2.1.5 “Just and favourable working
conditions”)
We believe in the importance of professional orientationand training for the development of our people and theirskills, even the more so in situations impacted by the energy transition that prompt requalification and enhancementof potential by way of reskilling and upskilling programs tofoster a just transition.
Facing the undergoing rapid evolutions means setting up
an inclusive working environment, aimed at enhancing thehuman being by placing him at the center of an ecosystem in which lifelong learning, well-being, productivity andsafety can reinforce each other, contributing to the fullest
realization of the person, in a perspective of ever greater
centrality.
For further detail, please refer to “Our commitment to ajust transition: leaving no one behind”.

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Inclusion(Human Rights Policy, “Employment practices”,
principle 2.1.2 “Respect for diversity and nondiscrimination”)
We promote principles of diversity, inclusion, and equal
treatment and opportunity, and we are committed toguaranteeing the right to working conditions that are respectful of personal dignity, as well as creating a working
environment where people are treated fairly and valued
for their uniqueness. We are committed to protecting thephysical and psychological integrity and individuality ofeach person, and we oppose all forms of behavior that result in discrimination in relation to gender, age, disability,
nationality, sexual orientation, ethnicity, religion, politicalopinions, and all other forms of individual diversity, or thatis detrimental to the person and their convictions or preferences. Accordingly, we promote people’s freedom of expression. We do 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.
For further detail, please refer to “Empowering Enel people” and the “Value for Disability” box in this chapter.

Health & Safety and well-being(Human Rights Policy, “Employment practices”,
principle 2.1.4 “Health, safety and well-being”)
We consider health, safety, and psychological, relational,
and physical well-being of individuals as the most precious asset to be protected in any moment, at work, aswell as at home and during leisure time. We commit todisseminating a robust health, safety, and well-being culture across our organization, to ensure that workplaces
are free from health and safety hazards and to promoting behaviors oriented towards work-life integration. We
actively commit to foster personal and organizational
well-being that are enablers of the engagement and innovative potential of people. We do, so, for example, by
providing benefits and services that support the integration of private and working life (for example, support, including financial one, for childcare and maternity or forthe care of the elderly).
For further detail, please refer to “Empowering Enel people” and “Occupational health and safety”.

1Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

OUR DUE DILIGENCE PROCESS

Industrial relations(Human Rights Policy, “Employment practices”,
principle 2.1.3 “Freedom of association andcollective bargaining”)
We protect the right of the people working with us to formor take part in organizations aimed at defending and promoting their interests. Likewise, we respect their right tobe represented, within the various working units, by unions
or other forms of representation elected in accordancewith the legislations and practices in force in the varying
countries where they work. Collective bargaining is for us
the favored instrument for setting contractual conditionsof the people working with us as well as regulating relations between management and unions.
The Group industrial relations activities continue to be carried out according to the model provided for in the Global
Framework Agreement (GFA) signed in Rome in 2013 with
the Italian industry federations and the global federations
IndustriALL and Public Services International, and whichis still recognized as a reference best practice for European and non-European multinationals. The agreement is
inspired by the best and most advanced systems of transnational industrial relations of multinational groups and institutions of international reference.
For further detail, please refer to “Empowering Enel people”.

Procurement activities and relationships
with business partners(Human Rights Policy)

Besides guaranteeing the necessary quality standards, ourpartners are requested to adopt best practices in terms ofhuman rights and working conditions, occupational healthand safety, environmental responsibility, and respect fordata protection by design and by default.
They are also an integral part in our development andawareness programs: each person must feel that they are
responsible for their own health and safety as well as forthe others.
In terms of specific actions, we secure that our procurement processes are based on criteria that promote sustainable development and social stability, as well as on theprinciples of free competition, equal treatment, non-discrimination, transparency and rotation that go on top ofcomplying with local legislation. 100% of the purchasing
product categories are preliminarily evaluated in terms ofrisk, on the basis of human rights, environmental, socialand economic criteria.
In addition, we support our partners to increase their resilience also in line with the promotion of practices based ona just and inclusive transition.
For further detail, please refer to “Sustainable supply chain”
and “Occupational health and safety”.

4

Our performance5

Appendix

ACCESS TO REMEDY

Communities(Human Rights Policy, “Communities andSociety”, principles 2.1.2, 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”)
Our commitment testifies how much we are aware that ouractivities can have a direct or indirect influence on the communities where we operate and why we believe that responsible community relations constitute a pillar of our strategy.
Indeed, individual conditions, economic and social development, and general well-being of collectivity are strictlyconnected: we therefore commit to conducting our capital expenditure in a sustainable manner and to promoting
cultural, social and economic initiatives for the local andnational communities involved to advance social inclusion
through education, training and access to energy.
We take due regard for the cultural, social, and economic
diversities from one country to another and require thateach stakeholder deals with us in accordance with them,with a particular attention to conflict affected and high-risk
contexts and vulnerable groups like local, indigenous andtribal ones and have committed to respect the International Labor Organization (ILO) Convention no. 169 on therights of indigenous peoples.
In developing our projects, we commit to engage all the
relevant stakeholders, including indigenous and tribal
communities as we believe active community engagement
throughout the process is essential.
For further detail, please refer to “Engaging communities”.

Customers(Human Rights Policy, “Employment practices”,
principle 2.1.2 “Respect for diversity and nondiscrimination”, “Communities and Society”,
principles 2.1.2, 2.2.6 and 2.2.7 “Respecting
the rights of communities”, “Privacy”,“Communication”)
We are committed to a just energy transition for everyone
also through the offer of innovative and inclusive services
for our customers, regardless of their age, for weak, destitute, marginalized, vulnerable people, paying particularattention to people with disabilities.
We undertake to always respond to suggestions and complaints made by customers and consumer associations,making use of appropriate and timely communication systems (e.g., call center services and email addresses), and to
consider the needs of all our customers, paying once moreparticular attention to people with disabilities.
We have also committed to ensuring that our products andservices are designed to be accessible for all and do not

Managing human rights

361

compromise the safety and physical integrity of our customers, as far as reasonably foreseeable.
Institutional and commercial communications shall be
non-discriminatory and respectful of different cultures,
while also not adversely affecting the most vulnerable
audiences, such as children and the elderly. This means,amongst other, that contracts and communications addressed to our customers should be clear and simple,
drawn up using a language as close as possible to the 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 detail, please refer to “Clean electrification”.

Cross-cutting issues
Privacy
We respect the confidentiality and right to privacy of our
stakeholders and we are committed to the correct use of theinformation and data relating to the people working in ourorganization, to our customers and to any other stakeholder.
Data protection and processing are an important challenge
for us in the era of digitalization and market globalization. We
process personal data in compliance with the fundamental
rights of data subjects and we abide by the rights and principles recognized in law, notably respect for private and family life, home location details and communications, personal
data protection, freedom of thought, conscience and religion,
freedom of expression and information.
We also undertake to monitor all third-party companies that
may be in a position to use customers personal data. To thisend, there are dedicated clauses in contracts with partners
that use personal data to carry out specific activities, such as
sales services or customer satisfaction surveys.

Innovation
Innovation and sustainability are inseparable parts of ourstrategy, together with the spirit of service and care for thewell-being of people and the society in which we operate.
That is why, in line with the Open Power vision, we also promote an open innovation approach to face the challengesof the energy transition. The open innovation model enables the connection of all the areas of the company withstartups, industrial partners, small and medium-sized enterprises (“SMEs”), research centers, universities and entrepreneurs, also through the use of crowdsourcing platforms.
The aim is to foster the adoption of solutions that canenhance our sustainable profile, such as favoring circular
economy approaches, which help reducing pressure on
the use of resources and on supply chains, ensuring inclusivity, and trying to deal with social issues.
For further detail, please refer to “Innovation”.

Specific salient issues
Forced labor in the supply chain:
the solar sector experience
Since 2013, our commitment against forced or compulsory labor and any form of slavery and human trafficking has
been formally set out in principle 2.1.1 Rejection of forced
and compulsory labor and of child labor in our Human
Rights Policy.
We are committed to contributing to reaching ambitious
climate targets, which implies the need to electrify end
uses as much as possible while supporting such electrification with a massive deployment of renewable energy
production.
Photovoltaics (PV) represents a key technology to enable the energy transition in the European Union (EU) andworldwide, and we believe the EU needs to have strategic
PV production inside its borders and to build the related
supply chain.
Aware of the challenge ahead of us and of expectations
around business contribution to human development also
through the UN’s 2030 Agenda for Sustainable Development, which go beyond specific legislation, our supplierqualification and contract-awarding processes include
rigorous technical, financial, legal, environmental, healthand safety, human rights and ethical integrity requirements, applied consistently in all markets.
Moreover, we are pushing for the suppliers to adopt a
traceability system to collect information on the supply
chain, as well as seeking to visit the companies involved
along the supply chain.
Finally, we carry out a number of initiatives to improvetransparency across the supply chain both individually andworking jointly with other utilities, our suppliers and sector associations (i.e., Global Alliance for Sustainable Energy
and Solar Power Europe, to name a few). For further detail,please refer to “Our commitment to a just transition: leaving no one behind”.
On top of this, we are working to get to the roots of theissue. Indeed, we are convinced that if we leverage on the
momentum for renewables, thanks to the existing R&D
and industrial know-how still present in the EU and withsupport from the EU itself, a new roadmap can be created
toward a European industry for solar panels.
That is why we welcomed the public consultation(4)launched in January 2022 by the European Commission on
the EU solar energy strategy that gathered input on themain bottlenecks and barriers to investment under existing
rules in the ‘Stakeholder consultation – Synopsis report’’
published in May. The results of the consultation confirmedthat a number of respondents supported the EU manufacturing of solar panels as a way of ensuring that PV products
installed in the EU apply high environmental standards, are(4) See: https://ec.europa.eu/info/news/public-consultation-feed-new-eu-strategy-solar-energy-2022-jan-18.

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1

Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

4

Our performanceOUR DUE DILIGENCE PROCESS

not produced by forced labor and reinforcing supply chain
resilience.(5)In addition, the EU Industrial Strategy published by theEuropean Commission in Spring 2021 identifies solar as
one of the key industrial ecosystems. The European supply
chain will thus need to be strengthened in order to facil-

5

Appendix

ACCESS TO REMEDY

itate access to rapidly growing markets within the continent and globally.
For detail on how we are acting to diversify the geographic
footprint of the solar supply chain, please refer to “Clean
electrification” and “Our commitment to a just transition:leaving no one behind”.

(5) See: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13338-EU-solar-energy-strategy_en.

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Access to remedy
2-25

2-26

We continuously monitor whether stakeholders are affected by our company’s business operations, and if any impact is identified, we put in place remedial actions.

We ensure access to remedy through grievance mechanisms to enable people — inside or outside the company— to flag that there is an issue and to seek a meaningful
response.

Grievance mechanism
In line with the third Pillar of United Nations Guiding Principles, we have set up multiple channels of access to remedy, including:• a whistleblowing channel, available to internal and external stakeholders, through:– the web or toll-free number shown on the Enel Codeof Ethics web page;– by writing to: Enel SpA - Audit Function - Code of Ethics. Via Dalmazia, 15 - 00198 Rome, Italy.

• several processes and tools available to the communities in the influence area of our operations;• customers complaints or information channels (via mail,website, toll-free number).
Hereby, a summary description of how they work.

Whistleblowing channel
Grievances are managed following a specific process codified in the ‘Management of anonymous and non-anony-

Sendinga grievance

Analyzinga grievance

Maximum
confidentiality
and anonymity
is guaranteed toevery stakeholder.
Stakeholders may send
grievance throughphysical and online
channels

The Audit Function
receives and analyses
the grievance andactivates the necessary
verifications

The key elements of the mechanism are:• anonymity and protection against any form of retaliation;• protection against groundless allegations made maliciously to harm or cause prejudice to individuals;• uniformity of treatment at Group level, in compliancewith company policies and local regulations.
Identity of stakeholders sending a grievance remains
confidential, unless otherwise required by the law.
Whenever, following a grievance, a violation of the princi-

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mous reports’ policy, illustrated also in our Human Rights
Policy, and summarized hereafter:

Acting upon an
effective violation

Should a violation
be ascertained, therelevant corporate
functions define thenecessary actions andspecific action plans, if
necessary

Management
and monitoring

The Group has in place
an information system
to manage and monitor
grievance received andascertained violations

ples contained in the Human Rights Policy is ascertained,
the Audit function defines recommendations to implement the corrective actions. The relevant corporate functions thus define the actions to take in accordance withthe applicable national legislation provisions.
Furthermore, the Audit Function reports the above violations or any violation recorded during auditing activity as
well as the ensuing necessary actions to:• the Control and Risks Committee, the Chairman of theBoard of Directors and the Chief Executive Officer of1Letter to stakeholders

2

We empower sustainable progress

OUR COMMITMENT

3

Materiality analysis

OUR DUE DILIGENCE PROCESS

Enel SpA, who assess if the Board of Directors should
be informed about the most significant cases;• the corporate bodies of directly or indirectly controlledsubsidiaries for the issues of competence.

4

Our performance5

Appendix

ACCESS TO REMEDY

Access channels are both physical and digital. Moreover,there are also channels at local level and this ensures accessibility to all potentially affected stakeholders in theirown language.
For further detail, please refer to the chapter “Values andpillars of corporate ethics”.

Communities
We provide access channels for reporting by people whoneed to contact us, using the tools and means available
locally, such as local teams or a specific person, toll-freenumbers, or, in the case of isolated rural communities,
local leaders who are available to periodically collect any
complaints.

Customers
Customer complaints are managed through dedicatedchannels and analyzed by a specific working group so thatthe most suitable actions are taken, both insofar as to thespecific matter of the complaint and, above all, in preventing the underlying causes that have led to the complaint.

Redressing in legacy projects
3-3

413-2

EU22

DMA (former EU20)

Hereafter, an illustration of the actual(6) impacts relating toa few 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 plants | in operation | actual impact
Plants names: Ralco | Location: Alto Bío Bío | Overall 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.
Background
The plant was part of the coal-fired thermoelectric complex of Bocamina, whose first unit (128 MW) shut down at
the beginning of 2021.

The second unit (350 MW), shut down at the end of September 2022, was built in an area characterized by high urbanization and social vulnerability that generated impacts
on the housing units around the construction site.
With such closures, after the one involving the Tarapacá
plant in 2019, we have become the first power company
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 and in line withour 2022-2024 Strategic Plan and our 2030 Vision, whichplace decarbonization and the acceleration of the energy
transition at the core.

(6) Impact occurred.

Managing human rights

365Remedies identified
Overview
Engagement with the community has led to the development and the implementation of a broad series of initiatives
for the social, economic and entrepreneurial developmentof the affected community, as well as an ambitious revegetation project to transform the 10-hectare area of the plant’s
ash landfill, which will no longer be used, into a native forest.
In addition, in line with circular economy principles, we are
studying various alternatives to reuse the facility’s assets inorder to provide new life to the site and create development
opportunities for the area.
An extensive analysis was carried out in 2017 with the support of a company with considerable experience in this area
to review how the original relocation process was carriedout with the purpose of remediating any gap vs international existing standards.
Among the gaps that emerged as more evident are the inequality and partiality of the agreements previously reachedboth with the persons concerned and with local authorities,
as well as the misalignment with international standards on
resettlement.
The new plan involves approximately 1,400 families, mostof them classified as belonging to vulnerable groups by the
Ministry of Social Development.
Key actions identified relate to:a. preservation of the social and human capital of the communites;
b. socio-economic development.
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. quantify and compensate the impacts on the quality of life of the families affected by construction
defects and the impact associated to 12 churches
which were not involved in the resettlement process;iii. finance the reconstruction of the historical school inCoronel, “Rosa Medel” as agreed with the town halland with the community;
iv. requalify new and pre-existing areas adjacent to theplant through the:• building 12 community headquarters in various
new neighborhoods;• painting of a 3,500 square meter mural - one of
the largest in Chile - along the external perimeterof the Bocamina power plant, through the narration of the history of Coronel and its inhabitants(involving dozens of neighborhoods and organizations);

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v. Just Transition agreement with Coronel Municipalitythat will allow local government to invest in strengthening healthcare and education services, along withcompleting the construction of a new school and park.
b. Socio-economic development:
i. support to artisan fishing in the form of dedicated borrowings (defined jointly with the local fishingcommunity);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. In
2022, approximately 1,000 complaints have been received,of which 85% have progressed through to the management phase and have been handled.
For a broader perspective, please refer to the box dedicated to Bocamina included in the chapter “Our commitment
to a just transition: leaving no one behind”, as well as Enel
Chile’s Sustainability report and the following webpage:https://www.enel.cl/en/sustainability/creating-shared-value/bocamina.html.

CHILE | RALCO
Actual adverse impact
Land management and relocation.
Affected stakeholders
Families living in indigenous land.
Background
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 theplant amonts to c. 3,000 people, equivalent to 800 families
spread across 11 communities.
The construction of the Ralco plant led to the flooding ofalmost 3,500 hectares of indigenous land, and involved therelocation of 81 families (about 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, we have 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
Overview
The engagement with the local community has led to thedefinition of improvement plans concerning:1

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a. education;b. economic development to support the self-dependence of local communities;
c. cultural identity programs;
d. risk reduction initiatives in emergency situations;e. access to energy.
Key lines of work
a. Education for children and young people living in ourarea of influence:i. access and permanence in formal education considering that the average number of years of schooling in the area is 6.5 years, well below the numberof years of compulsory education in Chile. This is
made possible by assigning scholarships that coverschool fees, room and board, study materials. Morethan 560 students participated in such education aid
program during 2022, 56% of which female and 97%
from the indigenous Pehuenche community;
ii. transport support, access to technology, and scholarships for secondary and higher education;iii. involvement of intercultural Pehuenche assistants inthe teaching process;iv. design and construction of the Quepuca Ralco
school.
b. Economic development to support the self-dependence of local communities:
i. improvement of productive facilities and equipment;
ii. skills enhancement through training in agriculture4

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and tourism, amongst other.
c. Cultural identity programs:
measures to support indigenous communities in thedevelopment of cultural initiatives aiming at promoting,consolidating and supporting cultural practice, like traditional ceremonies, language conservation, dissemination of culture and other.
d. Risk reduction initiatives in emergency situations:agreement with the Municipality of Alto Bío Bío to tackle the multidimensional poverty of local population´sdwellings and reduce risks in emergency situations
through skills enhancement and training of vulnerable groups to support their response in the occasionof emergencies linked to volcanos eruption and forest
fires.
e. Access to energy:
Collaboration with the Municipality to maintain 120 photovoltaic panels that belong to families residing in the
Alto Bío Bío area so that they can access a clean andsustainable electricity supply.
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. In
2022, 24 complaints have been received, of which 79%
have been connected to human rights. All of them haveprogressed through to the management phase and havebeen handled.

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
Families resident and people working or having commercial and service activities in the area of influence of theplant.

Background
The plant is located in the Department of Huila and its
building contributed to the increase in the energy security and the stability of the Colombian electricity system,
as well as promoting the growth of the area of influence inline with the Department of Huila development plans.

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Remedies identified
Overview
Engagement with the community started in late 2014 andhas led to the development and the implementation of amulti-year plan including a broad series of initiatives, mainly related to:a. environmental management training;b. socio-economic development.
Key lines of work
a. Environmental management:i. environmental awareness-raising activities;
ii. protection of biodiversity and nature:• large scale ecological restoration of >11k hectaresof tropical dry forest (for further detail, please refer
to “Conservation of natural capital”).
b. Socio-economic development:
Activities focused on providing support on technicalissues related to production processes and how to improve their efficiency.
During the last 10 years, more than 30 projects werecarried out in the municipalities of Altamira, Tesalia, Paicol, Garzón, Gigante and El Agrado for an investment ofhigher than 2 million euros that was beneficial to morethan 15,000 families in the department of Huila.
The most significant cooperation agreements relate to
the implementation of concerted agricultural productionplans with nearly 90 resettled families in Garzón, Altamira,
El Agrado and Gigante. With an investment of more than
800,000 euros, the beneficiaries improved and increased
the production and marketing of different foods such as
corn, wheat, lemon, milk, cocoa, tomato, and a wide variety of fruits, also including produce for self-consumption.
Hereby, a few examples of the main agreements signed
in 2022.
Garzón Municipality
Planting of 100 hectares of coffee jointly withplantains
The project aims at getting coffee varieties resistant torust and with higher yields and will benefit 100 coffee
growers who will receive coffee seedlings, fertilizers andagricultural equipment. In addition, technical, social andenvironmental monitoring will be carried out to guarantee the sustainability of their crops and increase coffee
production.
Enel will cover approximately 40% of the total investment (equal to more than 250,000 euros).
Optimization of the local marketplace meat module
electrical appliances
The project aims at revamping electrical networks built
more than 20 years ago and will benefit more than 70
merchants. Enel will contribute c. 80% of the total investment (equal to more than 110,000 euros).

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Tesalia Municipality
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(equal to close to 65,000 euros).
Livestock infrastructure improvement
This project is aimed at improving livestock infrastructure, sanitary conditions for bovines and increased milk
production, with the supply of silage or concentrated
feed, generating profitable and sustainable livestock,and thus improving the socio-economic conditionof the benefited farms belonging to the ASOGATE,ASOGAPAC and FOGAGRO associations.
Enel will cover more than 80% of the total investment
equal to close to 90,000 euros, with the Tesalia municipality and the associations covering the remainder.
Strengthening of the productive system of cocoa
families
The initiative relates to the delivery of machinery andspecialized fertilizers, with the objective of increasing
cocoa production by 75%.
Enel will cover 80% of the total investment of over
80,000 euros.
Strengthening the production and marketing ofcherry tomatoes
The project was achieved in 2022 and involved morethan 90 producers from the department of Huila, allowing the cultivation of around 5,500 seedlings of thisproduct and the generation of close to 3,400 euros ofincome.
The initiative was run in cooperation with three associations Agroprosur, Asocapa and Asosanjosé and Enelhas contributed 51% of the total investment (equal toover 80,000 euros) while the remainder was coveredby the Municipality of Tesalia, the Agroprosur, Asocapa,
Asosanjose associations, and the hydrocarbon company Hocol (represented by the Fundación del Alto Magdalena).
Three greenhouses were built together with two seedbeds where sowing, vegetative phase and subsequenttransplantation of the fruits are currently carried out. In
addition, the beneficiaries were trained in permaculture
and agroecology, good agricultural practices (run by the
National Learning Service - Sena) and attended workshops on harvest management, and marketing.

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Paicol-Huila Municipality
Bovine genetic improvement
This project, that will benefit 94 farmers, seeks to contribute to the livestock development of the region, enhancing milk production rates. together with the improvement of the genetic quality of the cattle.
Total investment is equal to close to 140,000 euros, 30%
of which will be covered by Enel.
Cocoa EffectThis is a long-standing project which involves the UnitedStates Agency for International Development (USAID),
the Luker Foundation, Luker Chocolate, the Saldarriaga Concha Foundation and Eafit University and is aimed
at strengthening cocoa production through training of
cocoa producers, environmental assessments instrumental to cocoa production, support to cocoa trees
cultivation (through all stages of development), assistance to fight pests and diseases.
At the end of 2022, we have started activities to extend
the program to a larger number of cocoa farmers.

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Grievance
In line with the United Nations Guiding Principles on businessand human rights, both physical and online grievance channels have been made available to the community. In 2022,
604 complaints have been received, of which 100 were justrequests of information. The remainder have progressed
through to the management phase and have been handled.
Other relevant information
Some local inhabitants/fishermen have started “acciones
de grupo” and “acciones populares”, currently pending,declaring that the revenues from their activities have been
reduced due to the construction of the power plant andthat the activities of filling the El Quimbo dam allegedly impacted downstream fishing and its environment. For
furhter detail, please refer to the paragraph on El Quimbo, in the “Contingent assets and liabilities” section of the2022 Consolidated Financial Statements. Further initiatives
and information are also available in the 2022 Enel Américas Sustainability Report.

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Other projects under development
WINDPESHI (La Guajira)
1 wind power plant | under development
Plant name: Windpeshi, | Location: La Guajira | 200 MW

Background
The plant will contribute to the country’s energy mix diversification.
Stakeholders in the area of influence
Indigenous communities resident in the municipalities ofMaicao and Uribia, belonging to the department of La Guajira a region characterized by a significant presence of indigenous communities, which represent 20% of the overall
population in Colombia.
Outcome of the stakeholder engagement process
Overview
La Guajira is a region with very high rates of unsatisfied basic needs. Key actions identified relate to socio-economic
development
Key lines of work
a. Socio-economic development:i. access to drinking water:• two public basins have been built to provide drinking
water to the communities in the area of influence;• an aqueduct that was not working was rehabilitated,
providing water to the communities on the road toWindpeshi.
Both actions have benefited 3,000 people belonging to
the Wayuu indigenous population;ii. education:• agreement signed with SENA, Servicio Nacional de
Aprendizaje which provides technical training and certifies the level of ability achieved by the affected communities. Actions concerned job training on basic
construction works and support to entrepreneurshipdevelopment through marketing, sales and handicraft
courses aimed at empowering communities to develop
their own business;• joint project with Artesianas de Colombia in the Wayuu
territory concerning their artisanal weaving crafts.
The training activities benefited 560 people overall, 270
through the agreement with SENA and 290 in the joint
project with Artesanías de Colombia.
Other
We also reached an agreement with the University of La
Guajira for the creation of an intercultural manual, which represents a fundamental tool for understanding the dynamics
and particular aspects of the ethnic communities.

Midelt, Boujdour & Essaouira
3 wind power plants | 1 in operation and 2 under development
Sizes: 210 MW, 300 MW and 270 MW

Background
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 ONEEthat will use this energy for the benefit of all final users,
including the local population.
Status up-to-date
In operation: Midelt, a 210 MW wind plant located about 20
Km from the Midelt city center.
Under construction: Boujdour, a 300 MW wind plant located approximately 180 km south of Laayoune Port (Marsa

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port) and Essaouira, a 270 MW wind plant located about 28
km from Essaouira city.
Stakeholder engagement
Midelt2015: preliminary analysis of the social, economic, and environmental context (“SEECA”) to identify relevant socio-economic issues and specific needs of local communities;
2019: environmental and social impact assessment (Environmental Social Impact Assessment - ESIA);
2020: new SEECA and consultation.
Key actions implemented
a. Environment (sustainable building site and during operations):

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including CO2 emissions, waste, and water, by means of:• photovoltaic mini-grid plus storage used to powerbasecamp, auxiliary services of the base camp andturbines erection;• stand-alone PV modules used to power prefabricated buildings/containers and streetlights;• utilization of energy efficient technology (LEDlamps, 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
which plantation of local trees and species nearby
the building area.
b. Occupational health and safety:
i. application of highest standards, in line with Enel’scustomary practices.
c. Socio-economic development during construction andoperation & maintenance:i. training and hiring of more than 250 people for
non-qualified works, all belonging to 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, including during the operations & maintenance 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 ofwind plants;
ii. setting up of a yearly scholarship granted to one
university student coming from the community ofMidelt;iii. implementation of a sustainability and environmental
education program called AKABAR AL MAARIFA totrain trainers at schools in Midelt and educate kids atprimary schools with the aim to:• develop ecological and social awareness, environmental sensitivity, behaviors and skills;• promote an active participation in community issues from early childhood so to build an environmental citizenship since primary schools;• introduce, in addition, an effective training and professional development program to equip teachers

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Appendixwith the knowledge, values, skills and strategies
necessary to implement the above environmental
citizenship.
e. Healthcare during the operations phase:i. setting up of a medical facility (caravan) made available to 1,400 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.
Boujdour• 2015: preliminary analysis of the social, economic, andenvironmental context (“SEECA”) to identify relevant socio-economic issues and specific needs of local communities, including infrastructure development, education, healthcare, poverty issues, social services, and protection of cultural heritage;• 2019: environmental and social impact assessment (Environmental Social Impact Assessment - ESIA);• 2020: human rights due diligence(7) and a new SEECA
and consultation involving vulnerable people groups
who self-identified as Saharawi.
Key actions implemented
a. Environment (sustainable building site and during operations):
Please refer to Midelt description.
b. Labor, with regards to occupational health and safety:
i. application of highest standards, in line with Enel’scustomary practices.
c. Socio-economic development (during construction andoperation):i. training and hiring of Saharawi people:• setting up of a training centre in the base camp withtraining in civil and electrical capabilities aimed atfilling the local gap of expertise thus creating theopportunity of using such skills also in the future;• hiring of c. 200 people for non-qualified works, ofwhich >90% from the local Saharawi community;• hiring of technical staff for O&M management, turbine service provider and substation maintenance,
security services and housekeeping;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;iii. ad hoc infrastructures for the needs of people and(7) In line with UN Guiding Principles on Business and Human Rights and in collaboration with an independent no profit organization with an international expertise in business and human rights.

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of the local small businesses in the area of influenceof the project:• during civil works, new sections of road were built
as well as requalifying existing ones (c. 60km). 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 to local Saharawi camel nomads through theprovision 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 masterclass: Workshop with INJAZ ALMAGHRIB to get young people from the college acquainted with business activities;• ‘It’s My Business’: with INJAZ ALMAGHRIB aimed at
fostering entrepreneurship skills of middle school
students through gamified activities and multiple
examples of nationally and internationally wellknown entrepreneurs;• company program: with INJAZ ALMAGHRIB addressing all stages of business creation and making young high school students able to participate
to different competitions, at local, national and regional level (MENA);• classes held by local volunteers of Nareva and Enel
Green Power Morocco covering topics related torenewables and the operation of wind plants;• setting up of a yearly scholarship granted to one
university student coming from the community of
Boujdour.
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.
Essaouira• 2015: preliminary analysis of the social, economic, andenvironmental context (“SEECA”) to identify relevant socio-economic issues and specific needs of local communities, including infrastructure development, education, healthcare, poverty issues, social services, and pro-372

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tection of cultural heritage;• 2021: environmental and social impact assessment (ESIA).
Key actions implemented
a. Environment:
Please refer to Midelt and Boujdour description.
b. Occupational health and safety:
i. application of highest standards, in line with Enel’scustomary practices.
c. Socio-economic development during construction:i. training and hiring of people employed for civil andelectrical works;
ii. hiring of 210 people belonging to the local community for non-qualified works;iii. maximized hiring of local small and medium-sizedbusinesses for auxiliary services (including transportation, cleaning, catering, supply of materials, etc.).
d. Promotion of education and other services:
i. training dedicated to approximately 400 beneficiaries of local schools, held by local volunteers thatcovered topics related to renewables and the safetymeasures for the construction of wind plants;
ii. installation of safety fences for local schools near theroads;
iii. rehabilitation of a local religious saint visitors’ place
to the benefit of the local community.
Grievance
Management system for all three plants in line with the United Nations Guiding Principles on business and human rights.
• Set up: once received, complaints are registered, analyzed and classified from 1 to 3 (score range takes into
account repetition, severity; 1 is the lowest, 3 the highest).
• The analysis leads to the identification of the possible
solution. Once the solution is agreed, the complaint is
considered as solved.
• Tools available to the community: complaints may bereceived through on-site suggestion boxes, traditionalmail, email, by phone, company representatives during
their staff visits.
The language used is “Arabic” and when a member ofthe community is not able to write and talks a dialect, atranslator is identified within or out the building site.
Midelt | Complaints managed concerned:
1. Request on using local labor from the community.
Solution agreed: hired non-qualified workers as describedat point c., i. of the Midelt key actions implemented.
2. Request for using local SME’s.
Solution agreed: contractors, with the support of local
stakeholders, launched a beauty contest to select local
service providers from the city of Midelt as suppliers forthe services and equipment needed as described atpoint c., ii. of the Midelt key actions implemented.

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Boujdour | complaints managed concerned:
1. Request for using local labor from the Saharawi community.
Solution agreed: hired non-qualified workers as describedat point c., i. of the Boujdour key actions implemented.
2. Request for using local SME’s.
Solution agreed: contractors, with the support of local
stakeholders, launched a beauty contest to select local
service providers from the city of Boujdour as suppliers forthe services and equipment needed as described at pointc., ii. of the Boujdour key actions implemented.
Essaouira | Complaints managed concerned:
1. Request for using local labor from the community.
Solution agreed: hired non-qualified workers as described

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Appendix

at point c., ii. of the Essaouira key actions implemented.
2. Request for using local SME’s.
Solution agreed: contractors, with the support of local
stakeholders, launched a beauty contest to select local
service providers from the city of Essouira as suppliers forthe services and equipment needed as described at pointc., iii. of the Essaouira key actions implemented.
3. Request of repairing water pipes that were damaged.
Solution agreed: the water pipe was repaired to ensure
water supply continuity while starting the building of abrand new one.
4. Request to reduce the lifting of dust by trucks.
Solution agreed: contractors started irrigating roads using
recycled water or pumped from the sea so as to reduce
lifting of dust during transportation.

VALUE4DISABILITY
With the Enel Value4Disability project people with disabilities
lead the way: not only inclusion but empowermentOur commitment to inclusion, as defined in our
Human Rights Policy, relies on considering proactively the needs and priorities of individuals
and society at large.
In addition to ensuring that no one is left behind, this approach encourages the generation of new ideas and is an
essential condition for creating sustainable value in thelong term.
Since 2019, we are part of Valuable 500, a global organization involving 500 CEOs and their companies, whose
mission is to drive lasting change for more than 1 billion
people around the world who live with a disability.
In 2020, therefore, we launched the Enel Value4Disability global project, which aims to empower Enel people
and customers with disabilities, enable the environmentof startups dealing with assistive technologies and makedigitally accessible both the main web portals used by Enelpeople/customers and the software application development, testing and release processes.
In 2022 we achieved important results, also thanks to thedissemination of the project both on internal communication channels (magazine and corporate intranet) andthrough external communication initiatives (National Geographic, Financial Times, influencers and interviews andarticles on the topic of inclusive business on specializedsites).

We also joined Business for Inclusive Growth (B4IG), a
global coalition of CEOs from global companies fighting
inequalities. Through its strategic partnership with theOECD, B4IG interacts with governments around the world
to promote inclusive growth.

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For Enel people
Globally, there are 2,129 people with disabilities, of which
over 70% in Italy.
We make sure to listen to their needs thanks to “focal
points” present in all countries where at least one colleague with a disability is present.
This allows us to develop dedicated initiatives both locallyand globally, in line with our Human Rights and Diversity andInclusion Policies. In particular, these initiatives allow to carry out work in complete autonomy, through tools, services
and methodologies that can create an inclusive working
and relational environment for all, and to raise awarenessand train all people, with particular focus on specific roles
more affected by these issues (new hires, managers, people& business partners, customer contact points).
Empowering initiatives include:• Global Inclusive Travel services to ensure an inclusive experience of stay and travel for business trips of colleagues
with disabilities (for example, information on accessibility
services in hotel facilities, activation of travel assistanceservice, travel accompanying services). 47% of colleagues
can use at least one of the Inclusive Travel services;• participation in the Generation Valuable project promoted by the Valuable 500 network with the aim of spreading the culture of inclusion and empowerment of people
with disabilities through mentoring meetings between
talented colleagues with managers;• drawing of global guidelines to ensure adoption of accessibility principles for the development of e-learning
content;• assistance and support for the adoption of assisting
tools by a dedicated team in Italy;• “Ability line” service in Romania to support colleagues inrecognizing disability;• initiatives to ensure physical and relational accessibilityin Spain and Chile and to promote digital accessibility in
Colombia;• hiring and internships of people with disabilities in Italy,
Spain and Brazil, integration initiatives in collaboration
with local institutions in Chile, Argentina and Mexico, inclusive staff research in collaboration with research andselection platforms in Romania, Argentina, Peru and Colombia;• pilot project, in Brazil, of tutoring in a process of onboarding, listening and development in which more than
140 people with disabilities are participating and which
involves about 100 managers and about 30 people andbusiness partners.
Awareness and training initiatives include:• design of an initiative at global level to spread awarenessabout the Design for all principles application to business processes and contexts so as to foster an inclusive
mindset in Enel’s people;• the videos “Our ability”, to learn everyday stories of colleagues with disabilities in their working environment,
and the webinar “Neurodiversity and autism” on the value of neurodivergent thinking in Italy;• the online course “Hablamos de Discapacidad” and the
web fiction “La casa de la inclusión” in Spain, subsequently customized for Romania, where podcasts on the
inclusion of diversity and disability have also been developed, and the “D&I hour” when oboarding new hires;• workshops and thematic podcasts in Chile and Colombia, where all colleagues were also offered an induction
on sign language.
For further detail, please refert to “Empowering Enel people”

For our customers
One of the most innovative aspects of the Value4Disability project is inclusive business, namely the Group’s commitment to opening new opportunities in terms of social
innovation and business development starting from thesolution of social needs. To promote this new approachin an integrated way, it is necessary to have a single visionof customer needs in terms of inclusiveness and accessibility.
In 2022 we have:a. defined who vulnerable customers are and what are
their needs.
“Vulnerable customers, for Enel, are both individuals
and entities who when looking at the combined effectof their intrinsic features, socio-demographic elements, economic and environmental conditions:• cannot participate or risk being adversely impacted

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by the energy market or by any of Enel Group’s operations;• have difficulties in obtaining or using information torepresent their interests;• are less comfortable accessing and using appropriate services and products.
Customers who are not directly vulnerable may fall under this definition if vulnerable people live in the samefamily and depend on family support or other assistance.”
By focusing on temporary or permanent conditions,
vulnerability results from the interaction between personal characteristics and changing environmental andsocio-economic conditions.
Moreover, the application of this definition is not limited to individuals, but is extended to all entities that

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may be in a vulnerable position (for example, familysmall enterprises in which the owner dies, associations
or businesses affected by economic situations suchas earthquakes, floods, wars, financial crises). Therefore, social(8) and economic vulnerability, disability, dependence on medical equipment, and other diversity
aspects such as seniority, language, literacy, and anyother feature that causes a certain degree of exclusion
fall within the vulnerability definition;b. developed ad hoc initiatives to promote customer
inclusion, thanks to intensive benchmarking and the
support of business leaders and the contribution ofinternal communities of colleagues with disabilities.
Here are some examples:• training course on vulnerable customers, dedicatedto those who relate directly with customers;• guidelines for accessible and welcoming stores;• inclusive electrification process: we have launcheda pilot project in Colombia to ensure that the electrification and contract signing phases are sustainable

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Appendixand inclusive. In particular, we are experimenting theapplication of the Social Inclusion Boosting Program
involving the Social Inclusion Community, a selectedgroup of people representing all the vulnerabilities
typical of that context;• Enel Premia Wow! for All: project carried out as partof Enel Energia’s loyalty program for the free market, aimed at the periodic inclusion in Enel Premia
Wow! of discount coupons related to the theme ofinclusion;c. involve our Business Lines in developing inclusive
business initiatives.
Enel X Way has, for example, made available in open
source mode the redesign of spaces for charging electric vehicles to make them ‘accessible’ to anyone, frompublic administrations to other companies in the e-mobility sector. In addition, Enel X Way WayAbilityTM has
been modified and updated: it is a product that makes it
possible to recharge electric wheelchairs thanks to the
public charging infrastructure in urban areas.

For our communities
As part of the sustainability projects planned in the area ofinfluence of “Coral” in India, where we developed a windfarm of about 170 MW and, following the usual process oflistening to local stakeholders, a grazing animal (a buffalo)
for the production of milk was given to a member of thecommunity in Gujarat, born with lower limb disability. By investing the earnings of milk sales in awareness raising andempowerment activities of people with disabilities in othervillages, such person has become a natural leader, developing a network of about 450 individuals. In practice, suchmember of the community supports the network of wom-en and men with disabilities in modifying their condition of
marginality, which is considered non-productive, in a condition that supports the whole family.
Moreover, vulnerable conditions are a source of stimulus
and continuous social innovation. An example of these innovations is the sign language interpreting, subtitling andtranslation service, developed together with 2 startups(VEASYT and Pedius) that will be tested within the Group
in 2023.

(8) For example: gap in the use of technology, acting as caregivers, economic situations such as earthquakes, floods, wars, financial crises etc.

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Occupational health and safety

Material topics (I level)

Plan

SDG

• Occupational health andsafetyDoublemateriality

Occupational healthand safety

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and the targets of the 2023-2025 Sustainability Plan, which may be redefined, added to, or surpassed with respect to the previous Plan.
SDG

Activities

2022 results

Progress

8

Safety Extra Checking on Site (ECoS)

124 Safety ECoS carried out

8

Safety Contractor Assessments

1,134 Safety Contractor
Assessments carried out

2023-2025 targets

Tag

80 Safety ECoS in 2025

S

S

Safety of Enel people and contractors

Target outdated as it was
substituted with the target on
proactive Evaluation Groups,
both related to checks activities
on contractors supplier control
activities(1)

8

Evaluation Group (EG) proactive
towards contractors

N.A.

N.A.

8

Reduction of injury frequency rates
compared to prior years (LTIFR)-23% vs 2021
(LTIFR = 0.50)(1)8Training hours provided by SHE
Factory

65,304 hours

S-1% compared to theprevious year

S

S

Target outdated as the focus of
the training approach changed
from extensive to intensive,
through the provision of specifictraining courses for professional
profiles required by the businessThis figure is the result of the calculation made using unrounded decimal values and refers to the combined LTIFR, Enel people and contractors. This index
is calculated by establishing the ratio between the number of injuries (all injuries, also those with 3 days of absence or less) and hours worked/1,000,000.

Goals
Industrial

E Environmental

G Governance

T TechnologicalI

47 in 2025

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2376

Bilancio di Sostenibilità
Sustainability
Report 2022
2022

Achieved

1

Letter to stakeholders

Promotion of health andwell-being of employees

SDG

2

We empower sustainable progress

Activities

2022 results

8

Global health and safety project

N.A.

8

Global health and safety
communication initiative

N.A.

3

Materiality analysis

4

Progress

Our performance5

Appendix2023-2025 targets

Tag

N.A.

1 project per year in the
period 2023-2025

S

N.A.

1 initiative per year in
the period 2023-2025

S

Read more

Read more

The global project includes the preparation of webinars andcommunication material on “Correct posture” and “Emerging
risks from remote working”.

The global communication initiative consists of the completion and roll out to the entire Enel population of the “Safety
Message” (SMM) application.

Occupational health and safety377
3

Occupational healthand safety
2-24

3-3

EU18

DMA EU (former EU21) DMA EU (former EU16)378

403-1 403-2 403-3 403-4 403-5 403-6 403-7 403-9 416-1

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Materiality analysis

The health, safety and psychological andphysical well-being of individuals is the mostprecious asset to be protected at all times oflife, at work, at home and during leisure time.
As part of the wider commitment to respectof human rights, in fact, we are committed
to developing and promoting a robust safety
culture in order to guarantee a workplacethat is free from health and safety hazards
for everyone who works with and for theGroup.
The constant commitment of all, integrationof safety in processes and in training
activities, disclosure and analysis of events,
rigorous selection and management ofcontractor companies, continuous quality
controls, sharing of experience andbenchmarking with the top international
players are the foundational elements of oursafety culture.

2.25

TOTAL RECORDABLE INJURYFREQUENCY RATE (TRI FR) ENEL
AND COMPANIES COMBINED
2.86 in 2021 -21.3%

0.50

LOST TIME INJURY FREQUENCY RATE(LTI FR) ENEL AND COMPANIESCOMBINED

4

Our performance5

Appendix

The protection of health and safety is
the responsibility of everyone who works
for Enel. The Stop Work Policy requiresthat both company employees as well as
personnel of contractor companies are
asked to intervene promptly and stop workthat could endanger their own safety andhealth as well as the safety and health ofothers, or that could harm the environment,
understood as compromising the qualityof its components. The Stop Work order
is applied without consequences. No fault
or responsibility will be attributed to an
employee or contractor who signals a risky
situation in good faith.

217

EXTRA CHECKING ON SITE (ECoS)SAFETY AND ENVIRONMENT
279 in 2021 -22.2%

1,245

thousand hours

OF TOTAL TRAINING FOR ENEL PEOPLE
1,188 thousand hours +4.7%

0.65 in 2021 -23.1%

Occupational health and safety379

“Statement of Commitment to Health and Safety”
and “Stop Work Policy”
The “Statement of Commitment to Health and Safety”
and the “Stop Work Policy”, both signed by the Chief
Executive Officer, are two documents on which thecommitment of our Group is based, also as approved by
our Policy on human rights.
The Statement of Commitment is based on the following
principles:• compliance with legislation, adoption of the best
standards and sharing of experience;• creation, implementation and continual improvementof the Occupational Health and Safety Management
System in compliance with international standard ISO
45001;• reduction of injuries, occupational diseases and otheraccidental events through the implementation ofsuitable preventive measures and checking of theiradequacy and effectiveness;• assessment of all health and safety risks and adoption ofa systematic approach to eliminate them at the source
if possible, or to minimize them, while guaranteeing
maximum protection for anyone working for Enel;• promotion of informative initiatives to disseminate
and consolidate a culture of good health, safety andorganizational well-being;• adoption of working methods inspired by quality andtheir dissemination by means of incisive and effective
training that aims to create a lasting connection
between technical aspects and safety aspects;• direct commitment of the persons in charge aimed atstrengthening a robust culture of leadership in relation
to safety;• adoption of safe and responsible conduct throughout
all levels of the organization;• design of workplaces and supply of suitable equipment
and tools for the execution of operating activities,
guaranteeing optimal and the safest conditions;• rigorous selection and management of contractors
and vendors, promoting their involvement in safety
performance continual improvement programs;• constant attention towards communities and towards
all those who work with or come into contact with theGroup’s activities by sharing a culture of health andsafety protection;• annual definition of priorities, specific and measurable
goals and continual monitoring to check their effective
implementation through the involvement of Top
Management.

The health and safety system
In line with the Policy on Human Rights, Code of Ethics,
Statement of Commitment and Stop Work Policy, we havedefined a specific Health & Safety Policy that requires every Group Business Line to have its own Health & Safety Management System in compliance with international
standard ISO 45001.
The Management System is based on the identification of
hazards, the qualitative and quantitative assessment of therisks, the planning and implementation of the preventive andprotective measures, as well as checking their effectiveness,any corrective measures and the preparation of work teams.
The Management System involves both Enel people and personnel from contractor companies who work at Enel’s plants
and sites, and is based on the following shared principles:• prior evaluation, elimination and/or reduction of risks
through application of the latest technical know-how;• identification of the necessary preventive measures andthe associated implementation program;

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• adoption of residual risk mitigation measures, awarding
priority to collective rather than personal solutions;• active, responsible and integrated intervention of allparties concerned with safety, involving workers and/or
workers’ representatives, starting from the identificationof risk situations up to the choice of solutions to prevent
and/or reduce them;• appointment of a medical officer, when required, andsetting up health surveillance for workers responsible for
specific high-risk processes;• preparation of a program of information and training ofworkers in order to increase awareness when dealing
with situations of risk;• regular upkeep and cleaning of workplaces;• the adoption of tools, also technological tools, to support
the assessment of the risk and its resulting mitigation.

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3

Materiality analysis

1,308

1,212
962

2020

Total Recordable Injury Frequency Rate
(TRI FR) i
3.24

2021

Number of Fatal Accidents(FAT) no.
9

Appendix

2021

Enel’scommitment
is: zero injuries
every day, all days

-21.3%

2022

Fatality Frequency Rate
(FAT FR) i

9
6

2020

2.25

2020

5

Combined values,
Enel people andcontractors

2.86-20.6%

2022

Our performance

constant commitment in the area of risk reduction. The
Global Business Lines and Country HSEQ structures orientand support the business in relation to health and safetyissues, define improvement plans and monitor their execution.

The Holding Health, Safety, Environment and Quality unit
(HSEQ) performs the roles of supervision, guidance andcoordination, promoting the dissemination and sharing ofbest practices within the Group and external health andsafety benchmarking with top international players in order to identify improvement opportunities and ensure

Total Recordable Injuries(TRI) no.

4

2021

-33.3%

2022

0.022

0.014

2020

Number of Life Changing Accidents(LCA) no.

0.021

2021

-33.3%

2022

Life Changing Accidents Frequency Rate
(LCA FR) i

4

2

0.005

-44.4%

0.000

0
2020

0.009

-50.0%

2021

2022

2020

2021

2022

Occupational health and safety381

As compared to the previous year, in 2022 there was aconsistent reduction in all injury frequency rates, in relation to a number of hours worked that has remained moreor less constant (+1.1%).
In 2022, the Total Recordable Injury Frequency Rate (TRI
FR) decreased 21.3% compared to 2021, with approximately 2.2 injury events for every million hours worked.
This decrease involves both Enel people (-2.4%) as well as
personnel from contractor companies (-24.4%).
Furthermore, as regards events with the highest impact,
there were 6 fatalities involving 1 employee of the Group(Enel Grids in Romania) and 5 involving contractors (all in
Enel Grids, 3 in Brazil, 1 in Italy and 1 in Argentina). The
causes of all these injuries are mainly associated with electrical (5) and mechanical (1) related accidents. Furthermore,during the year there was only 1 Life Changing injury thatinvolved a Grids contractor in Brazil.
There were also 2 Life Changing injuries, that is injuries
with consequences that changed the life of the injured
person, one from Grids in Brazil and the other Enel X in
Chile, both contracting company personnel.
217 Extra Checking on Site (ECoS) assessments were performed in 2022, meaning the internal assessment of safety
and environment in order to evaluate the suitability of theorganization and processes in a specific operating area of
the Group. These checks are performed by expert HSEQ
personnel who come from outside the operating unit under assessment, in addition to technical profiles who are
specific to the business. After the check is performed, areport is issued with the evidence found in the field andthe proposed corrective measures, whose implementation
is monitored until complete conclusion.
As regards the collection, analysis and management of theevents, the Group uses Policy 106 “Classification, communication, analysis and reporting of incidents”, which defines
roles and methods employed to guarantee prompt communication of incidents, ensuring the related cause analysis process, definition of improvement plans, and monitoring of the associated actions depending on the event type.
Based on evidence resulting from the monitoring andcontrol system, a data-driven approach was implemented
that is based on IT tools and analytical dashboards, whichmakes it possible to appraise the performance of the organizational units and suppliers, identify areas at greaterrisk of fatalities and Life Changing injuries and the subsequent management methods. This approach is combinedwith the collection and sharing of the best practices that
support the process of continuous learning and help avoid
the same events from repeating.

Safety in contract processes
Safety at Enel is integrated in tender processes and theperformance of companies is monitored both on a preliminary level, by means of the qualification system, and duringcontract execution through a large number of control processes and tools such as the Supplier Performance Management tool (SPM).
During the tender phase, a specific document is prepared(“HSE Terms”), and attached to all contracts that must be
signed by contractors when work is awarded. The document, which is the same throughout the entire Group, defines the obligations in relation to health, safety and environmental 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 suspension ofqualification on the Enel supplier portal.

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Sustainability Report 2022

As regards supplier safety and environmental checks,
during 2022 the performance of the Contractor Assessment (CA), continued at the offices of the suppliers and attheir job sites, or also remotely when it was not possible tovisit them on site. 1,434 CA were carried out distributed
among all the Enel Business Lines and Countries and Regions. The Contractor Assessment is carried out during thequalification phase for each new supplier, in cases in which
criticalities emerge (severe injuries or fatalities) or low SPM(Supplier Performance Management) rating scores. In addition, 55 Evaluation Groups (EG), which are periodic multidisciplinary meetings, were held in 2022 distributed in all
the Business Lines and Countries and Regions, which makeit possible to assess the safety performance of suppliersand define targeted actions as well as accompaniment andsupport plans customized for the companies, in order toreach the desired safety standards and mitigate possible
areas of risk in advance.

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2

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3

Materiality analysis

4

Our performance5

Appendix

Infrastructure safety
and technological innovation
Enel views technological innovation as a valid tool capable of improving a large number of processes from the
Health & Safety perspective. In continuation with what wasdone in previous years, the development and applicationof some innovative safety and health projects were continued also in 2022.
“Personal Voltage Detectors”, portable devices designed
to identify electrical voltage on medium-voltage powerlines located at operationally significant distances from theworker but not necessarily involved in the activity in progress, are being used in the Infrastructure and Networks
area to reduce the electrical risk.
Within the scope of the “Intrinsic Safety” program, which
was implemented with synergy and co-design between
various Enel Global Business Lines and Holding Functions,many experiments and innovative projects are being developed, such as: “AI4Lifting”, which uses Artificial Intelligence to detect any potential situations of danger whenhandling loads, and “Hop Safe”, a system that allows personnel to use a ladder when working at a height only when
they are properly connected to the life line.
The experimentation of innovative solutions is being continued in the area of HMI (Human-Machine Interaction) toprevent the risk of accidental impacts with moving work
equipment or with underground service lines, as in thecase of the following projects:• Anticollision System: whose objective is to improve thefunctionality of devices that generate alarms throughthe use of Artificial Intelligence programs;• Smart Bucket: which implements a system that is able toprevent damaging underground utilities during excavation works, which are a significant market problem thatcan create construction delays and risks for the safety ofmachine operators;• AME: a project with the purpose of creating a device
able to define a safe work area dedicated to operatorsand vehicles, through the use of proximity and voltage
presence sensors.
Finally, innovative solutions are being developed for monitoring health conditions during work activities in order toprevent and quickly manage potential situations of danger
and/or emergency. An example is Safety 4 Lone workers
which involves the use of a multifunctional device (smartwatch) that uses specific algorithms to monitor the main
biometric parameters in order to prevent possible situations of risk, in particular for Enel workers working alone.
In parallel, 2022 marked the end of the test campaign for
the Youcare T-shirt, an innovative wearable proposed by
the “Accyourate” company, which was fitted with electro-medical sensors that detect up to 9 bio-vital parameters, whose positive result opens up further scenarios in
the area of injury prevention and in the planning of campaigns for data driven based health.

Health3-3

403-3

Health is a fundamental value for the care and development of our people. For this reason, the Enel Group has
adopted a structured health management system basedon preventive and protection measures, and is committed to developing a corporate culture oriented toward thepromotion of psychological-physical health, organizational
well-being and balance between the professional and personal spheres.
This approach is described in the Policy on Human Rights
and the new version of the “Health and Well-being” Policy,
approved in January 2022, and defines in three main steps− health surveillance, prevention and well-being − the pathfor promoting good health and well-being.
From this point of view, from a global and local perspective,
we are promoting initiatives targeted toward improving
the quality of the work day on a physical and psycholog-

ical level, and are implementing awareness campaigns forpromoting healthy lifestyles. For example, in 2022, a global campaign on health risks connected to smoking was
carried out, and 2 webinars were held, translated into themain languages of the Group Countries and available to all
employees that explained the effects of smoking on healthand provided advice on how to quit.
As regards work-correlated stress, over the past years wehave carried out 3 surveys, starting from a coverage of approximately 20% up to all employees. The last survey wasstarted at the end of 2022. These surveys did not pointout true work-correlated stress, but some Company areas
emerged with a greater number of “borderline” cases, forwhich we planned and implemented actions to reduce theaverage stress level of the unit.
As regards occupational diseases, our analyses did not

Occupational health and safety383

find cases related to renewable energies that, due to theirnature, decrease the risk caused by the greater speed ofbuilding the plants and their more simple management.
In addition, we are providing screening programs targeted
toward preventing the onset of diseases and offer conventions that provide ready access to medical and healthcare
services, assistance actions for persons with disabilities
and specific preventive medicine initiatives.
As regards business travel, the “Health, safety and emer-

gency aspects for expats or long term travelers” policy is inforce, which in addition to providing guidelines to travelers
in terms of health, safety and emergency management,
also defines in a uniform manner the preliminary steps andauthorization flow for the temporary assignment of Enelpeople abroad. For the latter and their families, insurance
coverage was activated since last year, which provides access to health care services in the host country, as well ashome care.

Development of safety culture:training and information
3-3

403-5

EU18

To support the processes of change and guarantee thedissemination of a solid safety culture on all levels, the EnelGroup has a structured process for the management andprovision of training to all employees.
Overall in 2022, Enel people received approximately 1,245
thousand training hours regarding health and safety,
with the purpose of protecting the health and psychological-physical well-being of people and increasing the knowhow and specific skills of workers throughout the Group.
In particular, in the Holding HSEQ organizational unit, theSHE Factory unit is active, which has the specific objective of implementing, integrating and harmonizing training projects throughout the entire Group dedicated topromoting a new mentality for a better way to work that issafer for people and more sustainable for the environment.
SHE Factory unit provided more than 65 thousand hours ofinternal training.
In 2022, this unit provided various specific training courses
on health, safety, environment and quality (HSEQ), which
involved approximately 18 thousand employees, for a totalof more than 65 thousand hours of training supplied. As
regards safety, the main topics that were addressed lastyear were Safety Leadership, Stop Work Policy, Buddy
Partner and Mentor.

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Sustainability Report 2022

The Buddy Mentors can be defined as “safety influencers” and are based on a fundamental assumption: “Working safely means ensuring the safe work also of yourbuddies”. This is a project characterized by innovation,change (cultural and organizational), transferability andeffectiveness of the results. With this initiative targeted
toward Enel Grids personnel, Enel won the “AIF Training
Excellence Award (Italian Trainer Association)” in Italy, inthe category “Health, Safety, Organizational Well-being”,
targeted toward all professional structures working in the
public or private sector.
Particular attention is also placed on suppliers with the“Partnership for safety, health and the environment”
project, which focuses on assisting Enel partners in
adapting their company standards regarding HSEQ, withassessments and collaboration opportunities in the field.
From this point of view, SHE Factory provided all supplierswith a global software platform, ENEL4SHARE Platform,
for the sharing of training material which can be downloaded and used by the supplier to hold training for theiremployees.

1Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

TRAINING

HEALTH WEBINAR – The importance of prevention:risks to health deriving from smoking cigarettes

Sergio Martínez González
Health and Safety Manager,
HSEQ Holding

We are committed todeveloping a corporate cultureoriented toward the promotionof psychological-physicalhealth, organizational wellbeing and balance between
the professional and personal
spheres“For Enel, worker good health and well-being havealways been a top priority. We are working to protect
the psychological and physical well-being of all ourcolleagues, not only at work, but also at home and during
their free time. For this reason, we are committed topromoting healthy life styles and developing a new wellbeing-oriented corporate culture. We are convincedthat our contribution is able to improve the lives of ourcolleagues and their loved ones, and this motivates us toalways do better.“C

igarette smoking is one of the main causes of disease and death world-wide. Fortunately, many of
the negative effects of smoking can be prevented or reduced by quitting smoking. It does not matter
how long you have smoked, quitting can still considerably
reduce the risk of developing diseases associated withsmoking.
The Health and Safety unit of HSEQ Holding, organized a
global awareness event on damage caused by smoking on
May 31, on occasion of the “World No Tobacco Day”.
With Professor Laura Carrozzi, Full Professor of Respiratory System Diseases at the University of Pisa, and Directorof the AOUP Pneumology Unit, and Dr. Francesco Pistelli,

Senior Researcher of Respiratory System Diseases at the
University of Pisa and Manager of CEST, “Center for the
Study and Treatment of Tobacco Use”, we discussed prevention, the health benefits that result from deciding tostop smoking, products that replace the traditional cigarette, how the pandemic changed smoking habits and theenvironmental impact of smoking.
The webinar, which is also available in on-demand mode,
has been translated into the main languages of the Groupand recorded the participation of approximately 3,600 people, equal to approximately 5% of all Group employees.

Occupational health and safety

385

Safety of communities and third parties
3-3

416-1

EU25

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,
together with constant attention to social and environmental factors, makes it possible for Enel to implement on
the one hand a new fair development model that does notleave anyone behind and on the other hand is able to create shared value over the long term for all stakeholders.
Our installed plants are built in compliance with legislative prescriptions and the rules of best technical practice.
Plants, machines and work equipment are subject to systematic and periodic checks and maintenance activities
to guarantee correct operation in compliance with regulations and in accordance with the adoption of the bestsafety standards.
In order to guarantee the health and safety of the community and reduce the impact of the typical activities of
the Company’s generation process on the external envi-

ronment, the Company carries out monitoring campaigns.
These include, for example, measurement of the electromagnetic fields of power networks, the detection of thenoise level, vibration and dust created by the electricalmachines of power plants and distribution and transformer substations. Also the following environmentally significant factors are monitored: atmospheric emissions and air
quality, effluent discharge into surface waters, water quality, production, reuse and disposal of waste, soil quality,
biodiversity impacts.
Considerable attention has been devoted to preventing
injuries involving members of the public who accidentallycome into contact with electricity networks during operations such as job sites near transmission lines or sports
and leisure pursuits (fishing, flying kites, etc.). For this reason, awareness campaigns are conducted periodically, addressed both to the general public and to specific categories such as, for example, construction companies andsport’s associations.

Emergencies management
DMA EU (former EU21)
Our Group has defined a common crisis and critical events
management system across the various countries where
we are present, described by policy 24 “Critical Event Management”. This system involves evaluation of the impact
caused by critical events by means of a standard reference
scale with three levels. High-impact crises are managed
centrally, while medium- or low-impact crisis situations aremanaged 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 defines strategies and actions to deal with criticalevents and coordinates all actions designed to restrict
damage to the Enel Group’s property, profitability and reputation.
In parallel, if the critical event can involve risks to the healthand safety of people, the policy 203 “Guideline for Emergency Management” foresees on a global level the immediate activation of emergency measures, in compliancewith the locally adopted safety management systems.

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 capable ofassuring the absolute priority of safety and protection ofworkers, the community and the environment.

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Sustainability Report 2022

Further details are available on the Enel website (https://www.enel.com/it/investitori/sostenibilita/impegno-quotidiano/salute-sicurezza-lavoro/enel-nucleare).

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Appendix

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 for this purpose in the main countries in which
Enel is present, dedicated to monitoring the issues andprojects concerning workers’ health and safety on the national level and also in terms of Business Lines. In Italy, 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 since2012. The commission examines the main projects aimed
at improving safety standards, training projects, preventive
initiatives. In 2013, the Enel Global Framework Agreement

created an analogous bilateral commission at the Grouplevel, which defined a “joint recommendation” concerning
health and safety standards applicable in all Enel countries. Negotiations are in progress to renew the Enel Global
Framework Agreement.
On March 29, 2022, Enel and the trade unions signed the“Charter of the Person”, which is a document containing
important principles also concerning the safety culture
and behaviors that are being implemented on a Group level, as the agreement was implemented also in other Countries and Regions.
The following details concern the commissions that operate in the main countries on the national and/or local levels.

COUNTRYJOINT COMMITTEES FOR HEALTH AND SAFETY

Italy

The Occupational Safety and Environment Policies Committee performs an important role of analysis and planning of projects
that concern safety, the processing of prevention policies and organizational solutions; promotion of safety training courses for
personnel and employees of contractor companies, with particular attention to the prevention and protection service manager.
The Health and Safety Bilateral Bodies per Business Area are responsible, in particular in the Grids area that follows theguidelines dictated by the Bilateral Committee, applying them to the specific context of the Grids, for analyzing the injury trend,suggesting innovative safety projects, analyzing training plans and modify operating instructions. During the last two years,
both the Committee as well as the Health and Safety Bilateral Bodies were particularly active, with periodic meetings almost
every 15 days, in order to review in particular all the aspects correlated to the pandemic, as well as for the management ofsafety issues in order to identify and accompany innovative projects targeted towards continuously improving the prevention of
injuries, but above all to work on the safety culture also as specified in the Charter of the Person.

Romania

In compliance with legislative provisions, there is an Occupational Health and Safety Committee comprised of representatives
appointed by the trade organizations who represent the workers for each company (worker representatives) on the one
hand, and on the other, a number of people representing the employer equal to the number of worker representatives. The
occupational health physician is required to participate in the CSSM meetings.
The Occupational Safety and Health Committee aims to guarantee employee involvement in the development andimplementation of decisions regarding occupational health and safety. Committee members meet periodically (every threemonths and each time it is necessary) to discuss specific problems and propose measures/actions for managing, controllingand improving the level of employee health and safety. Based on the CLA, every Enel company also has joint committees
comprised of representatives of the members of the company and union/worker representatives that meet periodically/
every time it is necessary to resolve problems that arrive when applying the valid CLA, as well as to create an organizationalframework that permits them to remain in permanent contact in order to prepare the negotiations for the new CLA.

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 power plants have bilateral committees responsible for health and hygiene issues, which meet once a month or once every
two months. The agreement does not specify the frequency with which the meetings are held.

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, implementing permanent work and programs on the safety of work places.

Peru

We have 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

Two joint committees have been set up (COPASST), one for networks and one for generation, with the role of promoting
occupational medicine legislation.

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 “NOM-019STPS-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 a safety
walk at each plant and site every three months.

Occupational health and safety387

Sound governanceMaterial topics (I level)

Plan

SDG

• Sound governance andfair corporate conduct

Doublemateriality

Sound
governance

Structure of the Board of Directors
and Top Management

Below the 2022 results related to the targets of the previous 2022-2024 Sustainability Plan, the resulting progress and thetargets of the 2023-2025 Sustainability Plan, which may be rede ned, added to, or surpassed with respect to the previous Plan.
SDG

Activities

2022 results

16

Diversity Policy - Monitoring of theimplementation of the Diversity Policyin the Board of Directors

The composition of the Boardof Directors appointed by the
Shareholders' Meeting of May
14, 2020 is consistent with theobjectives set out in the Diversity
Policy for the various types ofdiversity

16

Recommendations and bestpractices - Continual alignment withinternational recommendations andbest practices for governance• Ensured alignment with•
16

Induction plan - Structured induction
plan for Directors and Statutory
Auditors during their term in office,which includes the sustainability
issues16

Engagement - Implementation
tracking and possible updating ofEnel SpA's Engagement Policy andsupporting the Investor Relations
unit in engagement activities withinstitutional investors and proxyadvisors on corporate governanceissuesProgressinternational corporate
governance bestpractices, including thoserecommended by leading
proxy advisors and leading
institutional investors
Full compliance with the new
Italian Corporate Governance
Code ensured

Induction activities carriedout to provide Directors
and Statutory Auditors withadequate knowledge of thesectors in which the Group
operates, market trends and theregulatory framework, including
sustainability issues• Enel SpA's Engagement Policy•

has been implemented in a
regular manner
The relevant corporate
Function has duly supported
the Investor Relations unit
in engagement activities
regarding corporate
governance issues

Goals
Industrial

E Environmental

G Governance

T TechnologicalI

2023-2025 targets

Tag

Monitoring of theimplementation of the Diversity
Policy in the Board of Directors

G

Continual alignment withinternational recommendations
and best practices forgovernance

G

Structured induction plan for
Directors and Statutory Auditors
during their term in office, which
includes the sustainability issues

G

Implementation tracking andpossible updating of Enel
SpA's Engagement Policy andsupporting the Investor Relations
unit in engagement activities
with institutional investors andproxy advisors on corporate
governance issues

G

Progress

S Social
New

Redefined

Outdated

Not in line

In lineN.A. = not applicable2388

2022 Sustainability
Sustainability
ReportReport2022

Achieved

Letter to stakeholders

We empower sustainable progress

16

Board review - Board review
carried out with the support of an
independent consultant

Board review activities started in
November 2022(1)16Share Ownership Guidelines Drafting by the competentorganizational structures andadoption by the Board of Directors ofshare ownership guidelines applicableto the Chief Executive Officer and Key
Management Personnel

N.A.

16

Anti-corruption certification - ISO
37001 anti-corruption certification
retained for the main ItalianCompanies, extended also to theGroup’s foreign companies

Certification obtained forthe main Italian and foreigncompanies of the Group subject
to the retention of certifications
already acquired

Compliance Program - Ongoing
improvement of Compliance
Programs/Models to prevent
criminal risks

4

Progress

N.A.

• Process continued to adopt
the Enel Global Compliance
Program regarding theacquisition and set-up ofcompanies at Group level
Ongoing updates of thecriminal risk prevention
models related to foreigncompanies

Our performance5

Appendix2023-2025 targets

Tag

Board review carried out withthe support of an independent
consultant

G

Drafting by the competentorganizational structures
and adoption by the Boardof Directors of guidelines
applicable to the Chief
Executive Officer and Key
Management Personnel andconcerning the minimum
threshold of ownership ofEnel shares to be reachedwithin a given term fromtheir appointment and to
be maintained during theirmandateG

100% retention of ISO
37001 certificationsacquired by Group
companies

G

Ongoing improvement ofCompliance Programs/Models
to prevent criminal risksG

Online training on ethicalissues (e.g. Model 231, Anticorruption Management
System, Enel Global
Compliance Program)G

S

Training - Additional extension oftraining on Model 231 and Enel Global
Compliance Program

Online training on ethical issues(such as Model 231, Anticorruption Management System,
EGCP) extended to all employeesof the Group's Italian and foreigncompanies

16

International Sanctions Program- Ongoing improvement of theinternational sanctions program andsanctions risk prevention model

N.A.

N.A.

Ongoing monitoring of theregulatory environment
and possible updatingof the internationalsanctions program toensure full compliance withinternational sanctions
regulations

G

16

Cooperative Compliance Index Group companies membership tocooperative compliance schemes(cooperative compliance with tax
authorities)

95.7%

N.A.

96.0% in 2025

G

16

Tax transparency

Materiality analysis

2022 results

•

(1)

3

Activities

16

Robust Organizational Model andCompliance Program

2

SDG

Anticorruption

Structure of the Board of
Directors and Top Management

1

S

It is expected to finalize the activities by March 2023.

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3Sound governance
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2-29

Enel shareholders
Enel is a Company listed since 1999 on the Euronext
Milan stock exchange and managed by Borsa Italiana SpA
and has the most shareholders of all Italian companies.
Notably, the shareholder structure at December 31, 2022
was as follows: (i) 56.7% institutional investors; (ii) 19.7%
retail investors; (iii) 23.6% Ministry of the Economy and
Finance. Enel’s corporate structure includes the maininternational investment funds, insurance companies,390

Sustainability Report 2022

pension funds and ethical funds, thanks also to theadoption, by the Company and the Group, of the bestinternational practices on transparency and corporate
governance. Moreover, at the date 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

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3

Materiality analysis

4

Our performance

44%

12

PERCENTAGE OF WOMENON ENEL SPA’S BOARD
OF DIRECTORSENEL SPA’S BOARD OF DIRECTORSMEETINGS CONCERNINGSUSTAINABILITY

Policy for managing the dialog
with institutional investors
and with all shareholders
and bondholders
Enel considers it to be in its specific interest – as well as aduty toward the market – to ensure a constant and open
relationship that is based on the mutual understandingof the roles with all shareholders and bondholders, as wellas with the institutional investors and their representative
associations in order to increase the relative level ofunderstanding regarding the activities performed by theCompany and the Group. In this context, Enel maintains
dialogue with counterparties based on principles offairness and transparency, in compliance with EU andnational 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 a significant
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 agreement with the Chief Executive
Officer, which clarified to a large extent the practices
already followed by Enel and whose use takes into accountthe applicable best practices adopted by the institutional
investors and reflected in the stewardship codes.
This Engagement Policy, which was applied consistently
during 2022, also identifies the corporate structures
that, in line with the practices established by Enel fromthe moment their shares were listed on the stock
exchange, are responsible for the dialog activities, andspecifically with: (i) a specific Investor Relations office
which is part of the Administration, Finance and Control
Function, which interacts on a continuous basis with theinstitutional investors (as well as with the financial analysts
and the rating agencies); as well as (ii) a specific area in

5

172

29

7

REPORTS
CONCERNINGTHE CODE OF
ETHICSVIOLATIONS
OF THE CODE
OF ETHICSDATA
BREACH

Appendix

the Corporate Affairs office, which is in turn part of theLegal and Corporate Affairs Function, which interacts
on a continuous basis with the retail shareholders andbondholders, providing them with all useful explanations
regarding the respective issues of interest.
The information provided to Enel’s institutional investors
and all their shareholders and bondholders by the aboveindicated organizational structures – as well as by any other
duly authorized Company member – complies with thecriteria of truthfulness, clarity, coherence, completenessand symmetry of information; the information is also
supplied in a timely manner and in compliance with what isrequired by the regulation adopted by Enel regarding theprocessing 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 withthe fixed income investors; (iii) managing relationships
with institutional investors and financial analysts; (iv)
coordinating the management of relationships with theinstitutional investors who have an interest in the listed
share capital controlled by Enel; (v) preparing market
analyses and reports concerning Enel shares, also
monitoring the consensus of the financial analysts; (vi)supporting the Communications Function, in coordination
with the Corporate Affairs unit with the definition andapproval of Enel’s price sensitive press releases, as well
as developing and updating the content dedicated toinvestors on the Company website and in the app called“Enel Investor”.
For more details, refer to the Report on Corporate
Governance and Ownership Structure for 2022. Also,
Enel’s website (www.enel.com, “Investors” section) provides
access to economic, financial, environmental, social andgovernance information and updated data and documentsof particular interest, providing a multidisciplinary andintegrated vision.

Sound governance391

Corporate governance model
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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, was also
inspired by the international best practices. The corporate
governance system adopted by Enel is oriented toward thegoal of sustainable success, given that it is aimed at creating value for shareholders over the long term, aware of
the importance from an environmental and social point ofview of the Enel Group’s operating activities and the con-sequent need to proceed with adequate consideration of
all the interests of the relevant stakeholders.
For a detailed illustration of Enel’s corporate governance,
we invite you to refer to the Report on Corporate Governance and Ownership Structure for 2022, which is available on the Company’s website (www.enel.com); we further
refer you to the specific sections of this Sustainability Report for an illustration of the governance of sustainability
and the management of climate change.

Board of Directors
CHAIRMAN
Michele Crisostomo
SECRETARY
Silvia Alessandra Fappani

CHIEF EXECUTIVE OFFICERAND GENERAL MANAGER
Francesco Starace

DIRECTORS
Cesare Calari
Costanza Esclapon de Villeneuve
Samuel Leupold
Alberto Marchi
Mariana Mazzucato
Mirella Pellegrini
Anna Chiara Svelto

Board of
Statutory Auditors
CHAIRMAN
Barbara Tadolini
AUDITORS
Luigi Borré
Maura Campra

ALTERNATE AUDITORS
Carolyn A. Dittmeier
Tiziano Onesti
Piera Vitali

Audit Firm
KPMG SpA(1)

It is available on the Borsa Italiana website (at https://www.borsaitaliana.it/comitato-corporate-governance/codice/2020.pdf).

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1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

2022
COMPOSITION OF THE BOARD
OF DIRECTORS

1executive director
1 in 2021

GENDER8

non-executive directors
8 in 2021

4

of which 8 independent(1)8 in 2021

44.4%

Women
4 in 2021

44.4%
in 2021

55.6%
55.6%
in 20215Men
5 in 2021

11

%
30-50
AGE

0%

< 30

89 %
> 50

EXPERTISE
Energy industry
Legal and corporate governance
Strategic vision
Communication and marketing
Accounting, finance and risk management
International experience(1)

The figures for 2022 and 2021 refer to directors qualifying as independent pursuant to the Consolidated Law on Financial
Intermediation and the Italian Corporate Governance Code (2020 edition).

Sound governance

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Board of Directors
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2-10

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2-13

2-14

2-16

The Board of Directors in office was appointed by the Ordinary Shareholders’ Meeting of May 14, 2020 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 andthe Nomination and Compensation Committee, and in implementation of what is required by the Single Financial
Act, approved a diversity policy that describes the optimal
characteristics of the Board’s composition to ensure it canfulfil its duties as effectively as possible, making decisions
that can tangibly benefit from the contribution of a plurality of different qualified members able to examine theissues under discussion from diverse perspectives.
The Board of Directors held 16 meetings in 2022, of which
12 addressed climate-related matters, reflected in thestrategies and related implementation methods. In order to provide Directors with an adequate overview of thebusiness sectors in which the Group operates (including
sustainability issues), a broad and comprehensive induction program was organized commencing in the second
half of 2020, followed by specific examination of the topics
of corporate governance and climate change during 2021.
During 2022, the induction program continued with further examination of the topics of cyber security and risk
governance.
The maximum number of offices that the members of theBoard 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 was last
updated in 2020 in order to adapt the contents to the relevant best practices prepared by the main proxy advisors
and relevant institutional investors.
In order to regulate the way in which the Company engages with institutional investors and with all shareholders andbond holders, in March 2021 the Board of Directors adopt-

2-17

2-18

3-3

405-1

ed a specific Policy (i.e. “Engagement Policy”), acting on a
proposal of the Chairman formulated in agreement with
the Chief Executive Officer, which clarified to a large extent
the practices already followed by Enel and whose use takes
into account the applicable best practices adopted by theinstitutional investors and reflected in the “stewardship”
codes.
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 thesteps to be taken to assure proper management of theCompany in case the Chief Executive Officer ceases tohold office before the end of their ordinary term (definedas “crisis management” cases).
Finally, at the end of 2022 and during the first months of2023, with the assistance of an independent consultant,the Board of Directors carried out an assessment of thesize, composition, and functioning of the Board itself andits committees (i.e. “board review”), in line with the mostadvanced corporate governance practices followed internationally and assimilated in the Corporate GovernanceCode. The board review was conducted also in accordancewith the peer-to-peer review method, i.e. through assessment not merely of the operation of the body considered
globally, but also of the style and contents of the contribution provided by each of its members, and was extended
to the Board of Statutory Auditors. Within the scope of theboard review, specific attention was dedicated to verify the
Directors’ perception regarding (i) the effectiveness of theinduction activities, as well as (ii) the involvement of theBoard of Directors in sustainability issues and the integration of sustainability topics in corporate strategy, including
those related to climate change. The results of the board
review are provided in Enel’s Report on Corporate Governance and Ownership Structure.

Remuneration policy
2-18

2-19

2-20

2-21

Enel’s Remuneration Policy for 2022, which was adopted by the Board of Directors acting on a proposal of theNomination and Compensation Committee and approvedby the Shareholders’ Meeting of May 19, 2022, was defined in consideration of (i) the recommendations contained in the Italian Corporate Governance Code, pub-

394

Sustainability Report 2022

lished on January 31, 2020; (ii) the national and international best practices; (iii) the information that emerged
from the favorable vote of the Shareholders’ Meeting ofMay 20, 2021 on the remuneration policy for 2021; (iv) the
results of the engagement activities regarding corporate
governance carried out by the Company between January

1Letter to stakeholders

2

We empower sustainable progress

and March 2022 with the main proxy advisors and somerelevant institutional investors with an interest in Enelcapital; (v) the results of a benchmark analysis regarding
the remuneration of the Chairman of the Board of Directors, the Chief Executive Officer/General Manager andthe Non-Executive Directors of Enel for 2021, which was
prepared by the independent consultant Mercer.
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 2022 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:– for the Chief Executive Officer/General Manager, the2022 MBO is based on the following annual performance targets:• Ordinary consolidated net income;• Group Opex;• Funds from operations/Consolidated net financial
debt;• System Average Interruption Duration Index – SAIDI(gateway objective), commercial complaints on thefree commodities market in Italy (gateway objective) and commercial complaints on a Group level;• Safety in the workplace;– 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 participation

3

Materiality analysis(1)

Our performance5

Appendixin specific multi-annual incentive plans. In particular, for2022 this component is linked to participation in theLong-Term Incentive Plan destined for the managementof Enel SpA and/or of its subsidiaries pursuant to article 2359 of the Italian Civil Code (“2022 LTI Plan”), whichcontains the following three-year performance goals:• average Enel TSR (Total Shareholders Return) vs average Euro Stoxx Utilities – UEM index TSR in thethree-year period 2022-2024;• cumulative ROIC (Return on Invested Capital) –WACC (Weighted Average Cost of Capital) in thethree-year period 2022-2024;• emissions of GHG Scope 1 per equivalent kWhgenerated by the Group in 2024;• percentage of women in the top management succession plans at the end of 2024.
The 2022 LTI Plan also requires any premium accrued tobe represented by a share component, to which – basedon the level of achievement of the various targets – amonetary component can be added. In particular, 130%of the base bonus of the Chief Executive Officer/General Manager (with respect to a maximum amount that canreach 280% of the base bonus) and 65% of the base bonus of the DRS (with respect to a maximum amount thatcan reach 180% of the base premium) is to be disbursed in
Enel shares, mainly purchased from the Company. In addition, the disbursement of a significant portion of the longterm variable remuneration component (70% of the total)
is deferred to the second subsequent financial year withrespect to the three-years of reference for the objectivesof the 2022 LTI Plan (i.e. “deferred payment”).
For more information on the contents of the 2022 remuneration policy, refer to the Report on the Enel remuneration policy for 2022 and on the compensation paid in 2021,
available on the Company website (www.enel.com).
Finally, the table below presents for 2019, 2020, 2021 and2022 the ratio between the total remuneration accrued by
the Chief Executive Officer/General Manager of Enel andthe average gross annual remuneration of Group employees (i.e. “pay ratio”). This report is indicated, for complete
disclosure, also in reference to only the fixed componentof the remunerations in question.

2022
Pay Ratio – Ratio between the total remuneration of the CEO/GM of Eneland the average annual gross remuneration of Group employees(1)460x(32x fixed
remuneration)

2021

2020

90x
(33x fixed
remuneration)

143x(35x fixed
remuneration)

To eliminate the exchange rate effect, the 2021 and 2020 amounts were recalculated using the 2022 exchange rate.

Sound governance395

Enel Group risk governance model
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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”)(2)

adopted by Enel, the Group has also implemented a risk
governance model based on specific “pillars”, as well asa homogeneous taxonomy of risks (so-called “risk catalogue”) 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 specific

1

Lines
of defense

2Group Risk
Committee

3

Local risk
committees

1. Lines of defense. The Group’s arrangements are structured along three lines of defense for risk management,
monitoring and control activities, in compliance withthe principle of segregating roles in the main areas inrespect of significant risks.
2. Group Risk Committee. This body, set up at management level and chaired by the Chief Executive Officer,
is responsible for strategic guidance and risk management supervision through:• the analysis of the main exposures and the main risk
issues 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 the principle of organizational separation between the units
responsible for management and those responsible
for the monitoring and control of risks;• the approval of specific operating limits, authorizing, where necessary and appropriate, exceptions tothese limits for specific circumstances or needs;

management, monitoring, control and reporting measuresfor each of the identified risk categories.

4

Risk
Appetite
Framework

5 Policy

6 Reporting• the definition of risk response strategies.
The Group Risk Committee generally meets four times
a year and can also be convened, where deemed necessary, by the Chief Executive Officer and by the headof the Risk Control unit, which is part of the Administration, Finance and Control Function. The committee met
four times during 2022.
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 therespective top managers, provides adequate oversightof the most characteristic risks at the local level The
coordination of these committees with the Group Risk
Committee facilitates the opportunity for sharing information and mitigation strategies regarding the mostsignificant exposures with the Group’s Top Management, as well as local implementation of the guidelines
and strategies defined at Group level.

(2) 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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1

Letter to stakeholders

2

We empower sustainable progress

4. Risk Appetite Framework (“RAF”). The Risk Appetite
Framework represents the framework of reference fordetermining the appetite for risk and is an integrated andformalized system of elements that enable the definition
and application of a single approach to the management, measurement and control of each risk. The RAF issummarized in the Risk Appetite Statement, a documentthat briefly describes the identified risk strategies andthe indicators and/or limits applicable to each risk.
5. Risk policy. The allocation of responsibilities, the coordination mechanisms and the main control activities

3

Materiality analysis

4

Our performance5

Appendix

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, broken down at Group level and by individual global business line or geographical area, allow Enel’s top management and corporate
bodies to have an integrated view of the Group’s main
risk exposures, both current and prospective.

The Group’s “risk catalogue” and the main ESG risks
Enel has adopted a risk catalogue that represents a pointof reference at the Group level and for all corporate units
involved in risk management and monitoring processes.
The adoption of a common language facilitates the mapping and comprehensive representation of risks within theGroup, thus facilitating the identification of the main typesof risk that impact Group processes and the roles of theGovernanceand cultureorganizational units involved in their management.
The risk catalogue groups the types of risk into macro-categories, which include, as shown below, strategic, financial
and operational risks, (non)-compliance risks, risks related
to governance and culture as well as digital technology.

Financial

Compliance

RISKS

Strategic

Digitaltechnology

Operational

Sound governance397

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 the reference framework of risk categories adopted
by Enel.
The following aspects were considered in order to identify
the main potential ESG risks:• the results of the materiality analysis (see the section“Our strategy for sustainable progress”);• the 2023 Global Risk Report of the World Economic Forum (WEF), involving more than 1,000 experts and leaders from all over the world;• the risk assessments carried out as part of Enel’s due
diligence process on human rights, which involved numerous experts from different sectors, including civilsociety, academic institutions, local communities, customers and suppliers, in the various countries in which
the Group operates;• the analyses of some of the most highly internationallyaccredited ESG rating agencies, which use specific risk
assessment systems to rate the level of company performance in relation to sustainability.

In the risk identification and assessment stage, the “Precautionary Principle”(3) 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 risk types
and the actions intended to mitigate the effects and assure their correct management.

STRATEGIC

Risk definition
Macroeconomic andgeopolitical trends
Legislativeand regulatory
development
Competitive
landscape

Risk of ineffective identification, assessment and monitoring of global economic, financial, political and social trends
and monetary, fiscal and trade policies evolutions.
Risk of adverse evolution of legislative or regulatory landscape, and/or ineffective identification, assessment, management and monitoring of legislative/regulatory evolutions, communication of new compliance duties, executionof advocacy activities and internal gap analysis. Lack of a systematic assessment process on regulatory exposures
coming from new strategic and business initiatives.
Risk of ineffective identification, assessment and monitoring of evolutionary market trends that may impact Group
competitive positioning, growth and profitability.
Reference scenario and description of risk
In 2023, the macroeconomic context will see inflation levels well above the objectives of Central Banks in almost all
economies.
Even if it is expected for inflation to moderate gradually during the year, some underlying inflationary dynamics related to final services and goods could remain persistent over the coming quarters.
To address this, Central Banks could delay the process of normalizing their monetary policies, which will further exacerbate financial conditions.
This represents a strong risk especially in emerging economies such as Latin America, where further generalized
worsening of the risk appetite could lead to further capital outflows and greater costs for the bond issues for local
governments. Furthermore, new risks can resurface with the spread of new Covid-19 variants, which could force
governments to reintroduce measures that restrict mobility and, as a result, generate new distortions on a supply
chain level.

(3) Rio Declaration on the Environment and Development (Rio de Janeiro, June 3-14, 1992), Principle 15.

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2

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3

Materiality analysis

4

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Appendix

Mitigation actions and associated strategic goals
The considerable internationalization of the Group – which has a presence in many regions, including SouthAmerica, North America and Africa – requires Enel to consider country risk, i.e., risks of a macroeconomic, financial, institutional, social or climatic nature and those specifically associated with the energy sector whose
occurrence could have a significant adverse impact on both revenue flows and the value of corporate assets.
Enel has adopted a quantitative Open Country Risk assessment model capable of specifically monitoring theriskiness of the countries in which it operates. The Open Country Risk model offer a broader view of the risk
factors that can impact a country. The model is divided into four risk components: economic, institutional andpolitical, social, and energy factors.
More specifically, the Open Country Risk model has the ambition to measure the economic resilience of eachcountry, which is defined as a balanced position with respect to the external environment, effectiveness of domestic policies, the vulnerability of the banking and corporate system that can predict systemic crisis, attractiveness in terms of economic growth and, ultimately, a quantification of extreme climate events as a source ofenvironmental and economic stress (economic factors). In addition, an assessment is performed of the robustness of institutions and the political context (institutional and political factors), an in-depth analysis of social
phenomenon and human rights targeted toward measuring the level of well-being, inclusion and social progress(social factors), the efficiency of the energy system and its position within the energy transition process, which areessential factors for assessing the sustainability of investments over a medium-long term period (energy factors).
Risk definition
Climate change

Risk of ineffective identification, assessment and management of risks related to climate changes – caused byacute and chronic events (physical risks) and by effects of regulatory, technology and market trends arising fromthe transition to a lower-carbon economy (transition risks) – through strategic and operating initiatives of adaptation and mitigation of climate risks.
Reference scenario and description of risk
The physical risks arising from climate change can be classified as acute (or extreme events) or chronic: theformer are linked to extremely intense weather-climatic conditions, while the latter refer to gradual and enduring changes in climatic conditions.
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 other physical risks or opportunities (depending on the geographical location): forexample, 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 to both the changing regulatory context and the technological and electrification trends,
and resulting market developments, with potential effects also on commodity and energy prices..
Mitigation actions and associated strategic goals
In order to facilitate the proper identification and management of risks and opportunities related to climatechange, a Group policy was published in 2021. The policy describes common guidelines for assessing the risks
and opportunities arising from climate change. The “Climate change risks and opportunities” policy defines ashared approach for the 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-termsustainable value creation, consistent with the adaptation and mitigation strategy.
A detailed description of the strategic objectives and mitigation actions/management methods is provided in
the “Zero emissions ambition” chapter of this document.

Sound governance399

OPERATIONAL

Risk definition
Environment

Risk that inappropriate working operations or machineries may adversely impact on the environment quality andecosystems involved.
Risk of a breach in complying with international, country or local environmental laws and regulations.
Reference scenario and description of risk
In recent years, a growing sensitivity of the entire community has emerged in relation to risks linked to models
of development that generate impacts on the quality of the environment and on ecosystems, with the exploitation of scarce natural resources (including raw materials and water).
In some cases, synergistic effects between these impacts, such as global warming and the growing exploitation and degradation of water resources, increase the risk of environmental emergencies arising in the mostsensitive areas of the planet, with the risk of competition among different water resource uses, i.e. industrial,
agricultural, and civil.
To address these needs, institutions are updating environmental regulations to be more restrictive, placing
increasingly stringent constraints on the development of new industrial initiatives, obliging or facilitating a shift
away from technologies considered to be no longer sustainable in what are seen as the highest impact sectors.
Also the international commitment to mitigating impacts on biodiversity is growing, as already shown in Europe
by the Green Deal and introduced in 2022 by the Global Biodiversity Framework approved at COP 15 in Montreal. In this context, companies in each sector, and especially leading companies, increasingly aware that environmental risks are also economic risks, are urged to step up their commitment and take on greater responsibility
in identifying and adopting innovative and sustainable technical solutions and development models.
Mitigation actions and associated strategic goals
Enel has made the effective prevention and minimization of environmental impacts and risks a foundational
element of each project across its entire life cycle. The adoption of ISO 14001-certified Environmental Management Systems certified within the Group ensures the presence of structured policies and procedures to
identify and manage the environmental risks and opportunities associated with all corporate activities.
A structured control plan combined with actions and improvement objectives inspired by the best environmental practices, with requirements higher than those linked to simple environmental regulatory compliance,
mitigates the risk of impacts on the environmental matrix, reputational damage and legal disputes. An important contribution is also made by the multiplicity of actions to achieve the challenging environmental improvement goals established by Enel, concerning e.g. atmospheric emissions, waste produced, and water consumption, especially in high water stress areas, and impacts on habitats and species.
The risk of water scarcity is directly mitigated by Enel’s development strategy, which is based on the growthof generation from renewable sources that are essentially not dependent on the availability of water for theiroperation. Special attention is also devoted to assets in areas with a high level of water stress, in order todevelop technological solutions to reduce consumption. Ongoing collaboration with local river basin management authorities enables us to adopt the most effective shared strategies for the sustainable management ofhydroelectric generation assets.
Finally, suitable actions are being implemented for ecosystems in order to protect, restore and conserve biodiversity, the natural species in the habitats, respecting the principle of mitigation hierarchy (avoid, minimize,
restore and compensate), as well as suitable terrestrial, marine and river monitoring activities to check theeffectiveness of the adopted measures.
Enel is an active part of the international debate with stakeholders and the networks with the most influence on
the topic (for example, Business for Nature, Taskforce on Nature-related Financial Disclosure, World BusinessCouncil for Sustainable Development and Science Based Targets for Nature).
For the issues related to nature and biodiversity, also refer to the “Conservation of natural capital” chapter inthis document.

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Risk definition
Health and safety

Risk that inappropriate working environments, structures, machineries and business operations may negatively
impact on health & safety conditions of employees and other stakeholders involved.
Risk of a breach in complying with international, country or local laws and regulations on health and safety.
Reference scenario and description of risk
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 its assets. In this context, violation of the laws, regulations, andprocedures in force concerning to health and safety, workplaces, management of structures, company assets
and processes, which can have a negative impact on the health of employees, workers, and stakeholders, cangive rise to the risk of administrative or judicial penalties with associated economic-financial and reputational
impacts. The main operational risks for safety and health are evaluated in depth at each site or Company asset.
These risks were identified by analyzing the main events that occurred in the past three years. In particular,
in relation to probability of occurrence, mechanical risks (falls, knocks, crushing and cuts) are the most likely,
whilst in terms of potential associated impact, electrical risks are those with the most severe consequences(fatalities).
Also, in relation to the Group’s presence in different geographical contexts worldwide, employees and contractors may be exposed to health risks relating to emerging infectious diseases, of epidemic and potentiallypandemic nature, which may affect their good health and well-being.
Mitigation actions and associated strategic goals
Enel has adopted a Declaration of Commitment to Health and Safety, signed by the Group’s Top Management.
For its implementation, each of the Group’s Business Lines has its own Occupational Health and Safety Management System in compliance with international standard BS OHSAS 45001, based on identifying hazards,
qualitative and quantitative risk assessment, planning and implementing preventive and protective measures,verifying the effectiveness of preventive and protective measures, and any corrective actions required.
The Enel Group has defined a structured health management system based on preventive and protective measures, functional also in respect of the development of a corporate culture oriented towards promoting mental-physical health and the organizational well-being of workers, and also the balance between the professional
and personal spheres.
This system also considers the rigorous selection and management of contractors and suppliers, promoting
their involvement in continuous safety performance improvement programs.
Furthermore, with regard to emergencies relating to risks resulting from the current and persistent pandemic
scenario, a unit has been set up within the Holding P&O Function with references in each Business Line andCountry, in order to assure the definition of the global strategy and policies for management of the emergency
and their adoption in every Group organization.
In particular, this organizational structure and the related management processes make it possible to direct,
integrate and monitor, both at Group and Country level, all the prevention, protection and intervention actions
aimed at protecting the health of employees and contractors, also in relation to exogenous health risk factorsthat may not be strictly related to work activities.
Further information on risk management is given in the "Occupational health and safety” chapter.

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Risk definition
Customers’ needs
and satisfaction

Risk of failure of Group’s products and services in achieving customers’ expectations and needs in terms of quality,
accessibility, sustainability and innovation.
Reference scenario and description of risk
The leadership of a company like Enel necessarily passes through customer care and attention to quality service, aspects that refer not only to the supply of electricity and/or natural gas, but also and above all to theintangible aspects of the service perceived by the customer.
Potential increase in the number of vulnerable customers and energy poverty due to an increase in the priceof electricity.
Mitigation actions and associated strategic goals
The Company is constantly committed to maximizing value for customers:• through a robust business model that focuses on the continuous improvement of efficiency, effectiveness andresilience in process management (activation of new services, billing, payments and credit, customer focus)
and digitalization.
• making them more aware with offers geared towards increasing awareness of their consumption, different timeslots, rewards for reducing consumption compared to the past, clear and simple communication;• proactively managing their needs;• accompanying them toward electrification.
Furthermore, Enel supplies innovative and inclusive products and services for customers of all ages, weak, destitute, marginalized, vulnerable families (for example the so-called “social bonus” as a form of support for paying
the bills for vulnerable families).
The Group monitors the rate of customer satisfaction in every Country in which it operates through specific surveys and analysis of the received feedback.
Further information on risk management is provided in the “Clean electrification” chapter

Risk definition
Procurement,
logistics and supply
chain

Risk of ineffective procurement or contract management activities, due to inadequate requirements definitionor supplier qualification process, a frequent recourse to direct awarding, scouting activities shortcomings,
poor monitoring over the fulfillment of contractual duties, non-application of penalties.
Reference scenario and description of risk
Enel could be exposed to reputational, economic or financial risks following ineffective procurement activities
along the entire 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 and non-discrimination, freedom of association and collective bargaining, fairand 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 thecase of excessive recourse to direct awards, and the failure to apply penalties.

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Mitigation actions and associated strategic goals
Group procurement processes and the related governance documents constitute a structured system ofstandards and checkpoints that make it possible to combine the achievement of economic business goals withfull compliance with the fundamental principles set down in the Policy on Human Rights, Code of Ethics, Enel
Global Compliance Program, and Zero Tolerance of Corruption Plan, while continuing to promote initiatives
aimed at sustainable economic development.
These principles are expressed in the processes and organizational measures that Enel has decided to adopt
from a self-regulation point of view in order to establish relationships of trust with all its stakeholders andto define stable and constructive relations that do not only guarantee economic competitiveness but that
account for the best practices in essential areas for the Group, such as the refusal of forced and child labor,
promotion of occupational health and safety conditions, and environmental responsibility. Thanks to greaterinteraction and integration with the external world and with the various parts of the Company organization, theprocurement process is taking on an increasingly central role in value creation as it contributes to creating aresilient and sustainable supply chain, thinking in terms of circular economy, encouraging innovation, sharing
the Group’s values and objectives with suppliers who, as such, become partners and enabler for achieving
Enel’s targets.
More specifically, reward factors are introduced in the tenders, aimed at generating virtuous behavior on thepart of our suppliers: for example, the environmental impact of any customer is strongly influenced by the impact of its upstream supply chain. Global Procurement therefore pushes its suppliers to objectively measure
their carbon footprint and to embark on pathways of improvement.
From the perspective of the procurement process, the preferred tool is that of a tender, which guarantees
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 directaward and without competitive bidding can occur only in exceptional suitably motivated circumstances incompliance with relevant statutory legislation.
Moreover, the supplier qualification system, the same one throughout the Enel Group, checks – even before
the procurement process starts – that potential suppliers are in line with the strategic corporate vision and withexpectations in relation to all the mentioned profiles and requirements.
With regard to the risk governance system, the Group is focused on the application of metrics that indicate
the level of risk before and after the mitigation action, in order to implement precautionary actions to reduce
uncertainty to a 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
the probability of insolvency, the concentration of contracts with individual suppliers or industrial groups, thesupplier’s dependence on Enel, the performance index for proper conduct during the tender, quality, punctuality and sustainability in the execution of the contract, Country risk, etc., for which thresholds are defined thatguide the definition of the procurement, negotiation and award strategy of a tender, allowing informed choices
based on potential risks and befits (savings).
During the Covid-19 emergency, actions were taken, which were made structural, for the differentiation of
procurement sources (to prevent interruptions in the supply chain) and for performing, remotely, activities thatwould normally require physical interaction between Enel and the supplier (e.g. company on-site inspections).
Furthermore, in order to counter the consequences of the geopolitical situation in Ukraine, which increased
market volatility and further stressed the supply chain, which already seriously tested during the period of theCovid-19 pandemic, Global Procurement constantly monitors the activities inherent to the supply/logistics
chain, also with the active participation of the suppliers, through a specific contractual obligation to monitor
in order to mitigate the risks deriving from market shortages or critical issues regarding logistics and businessinterruptions.
Further information on risk management is provided in the “Sustainable supply chain” chapter.

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Risk definition
Businessinterruption

Risk of partial or total interruption of business operations arising from technical failures, assets and plants
malfunctions, human errors, sabotages, raw materials unavailability or adverse weather events.
Reference scenario and description of 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 by technical faults, malfunctions of assets and plants, human error, sabotage, unavailability of raw materials or adverse weather events, or infectious diseases with epidemic or pandemic potentialthat may limit the normal functioning of the Group’s activities or of its supply chain.
Mitigation actions and associated strategic goals
Enel has systems and mechanisms to guarantee a continuous and safe energy supply to the national electricalsystems of the countries in which it operates. Enel is therefore constantly at work to develop and improve theefficiency of the transport and distribution 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 ofthe service delivered and reducing the number and duration of outages. Enel also 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.
Moreover, with special reference to the management of critical events, Enel has drawn up Group, Business Lineand Country policies to ensure effectiveness of the decision-making process in the management of any eventthat could impair continuity of the public service and the Company’s business, including health emergencies
with a local and/or global impact.
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.
Especially in relation to the health emergency, Enel defines specific protocols designed to limit the spreadof contagion among the people involved in operating assets and consequently guarantee the continuity ofservice.
Further information on risk management is provided in the “Clean electrification” and “Sustainable supply
chain” chapters.

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Risk definition
People andorganization

Risk of inadequacy of Group’s organizational structures or lack of internal skills caused by the absence or inadequacy of training programs, ineffectiveness of incentive schemes, inadequate turnover planning process orinability to define effective employees recruiting processes and retention policies.
Reference scenario and description of risk
Enel has placed sustainability at the center of its strategy as the core of its business model in order to contribute toward reaching the sustainable development goals of the United Nations 2030 Agenda. The Group has divided sustainability into different geographic, economic and social contexts to guide the just transition, whichis essential for the future of the planet, accelerating the aims to lead the transition towards a more sustainable
development system, essential for the future of the planet, accelerating the process of decarbonization of its
energy mix through the increase in renewables and the ever-increasing electrification of consumption. The
profound social, economic and cultural transformations we are experiencing, from energy transition to thedigitalization and technological innovation processes 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 totheir social and work aspects, with tools suitable for facing this epic transformation. Organizations must be
increasingly oriented toward new agile and flexible work and business models that are sustainable along theentire value chain. It is also essential to adopt policies that value diversity and the talents of everyone, with theawareness that the contribution of the individual represents an essential component for the creation of widespread and shared value.
Mitigation actions and associated strategic goals
Recognition of the value of a person as unique, constant listening, empathy, sharing, passion, involvement are
only some of the key words that guide our way of working and experiencing the Company, along a pathwaythat starts from I and arrives at Us.
The centrality of persons and the management of human capital take on a fundamental role in energy transition as enabling factors and represent the priorities to which specific objectives are linked, the main ones
including: development of digital skills and expertise, promotion of reskilling and upskilling programs for ourpeople (continuous, customized, flexible, accessible and transversal) to ensure long life employability, the sharing of best sector practices and training targeted also to those who work with our people, both suppliersand contractors, the correct wide-spread involvement of the Company purpose, which ensures better results supported by higher personal satisfaction, understood as motivation and well-being; development of theworkplace and performance appraisal systems; the dissemination, in all the Countries in which the Group ispresent, of the diversity and inclusion policy, as well as an inclusive organizational culture based on principles
of non-discrimination and equal opportunities, key drivers to attract and retain talent.
The Group is committed to strengthening the resilience and flexibility of its organizational models throughthe simplification and digitalization of processes, in order to enable the autonomy and responsibilities of theindividuals and teams, strengthening our people empowerment processes and favoring the entrepreneurial
approach through a “gentle” leadership model that promotes talents, attitudes and aspirations of persons in
the affirmation of Us. The hybrid work method, which combines work on site and remote working in flexible
proportions that take the needs of everyone into account, such as the use of innovative and flexible organizational models, are tools targeted toward sustaining this evolution of the organizational culture in terms of trust
and responsibility rather than hierarchy and control.
In line with this strategy, also social dialog is evolving toward a model that increasingly reinforces the centralityof persons. For example, Enel and the Italian trade unions signed the “Charter of the Person”, an innovative protocol focused on the well-being, involvement, motivation and participation of the individual, whose principles
were also welcomed and implemented in other Countries where the Group is present.
The commitment is also targeted toward creating figures in the organization who, as “ambassadors”, promote
the adoption of shared models and behaviors that are focused on the sustainability of relations.
Further information on risk management is provided in the “Empowering Enel people” chapter.

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GOVERNANCE AND CULTURE

Risk definition
Stakeholders’engagement

Risk to ineffectively engage key stakeholders on Enel’s strategic positioning on sustainability and financial goals
due to a lack of understanding, anticipating or orienting their expectations, which might cause an incomplete
integration of such expectations into Group’s business strategy and sustainability planning processes, with apotential negative impact on its reputation and competitiveness.
Reference scenario and description of risk
The risk of ineffective engagement of key stakeholders in relation to the strategic positioning of Enel on sustainability and financial objectives, due to the lack of understanding, 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.
Enel currently operates in a vast geographical area, with a presence in more than 40 countries distributed infive continents, 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, with a potential
negative economic-financial and reputational effect.
On the other hand, Enel’s commitment to decarbonize its energy mix – with a particular focus on the coal mining phase – could have a potential negative impact in local areas that are heavily dependent on coal operations(mining and electricity generation) in terms of job losses and socio-economic development. This could ultimately expose Enel to reputational risks or even delay the Group’s achievement of the decarbonization goals
set out in its Strategic Plan. In the meantime, the outlook of investors is shifting fast: the changes in progressand challenges presented by the modern world are also revolutionizing the method of investing.
ESG investors are growing constantly: at December 31, 2022, SRI funds constituted approximately 14.9% of theshare capital (14.6% higher at December 31, 2021), while PRI (Principles for Responsible Investment) signatory
investors represent 42.1% of the share capital. (vs 46.6% at December 31, 2021). The 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 havesignificant negative impacts on the assessment of Enel’s shares and bonds.
Mitigation actions and associated strategic goals
In order to identify the priority issues for the Company and its stakeholders, materiality analysis is carried out
annually, aimed at engaging and listening to all the Group’s main stakeholders.
From an operational viewpoint, knowledge of specific local requirements and continually listening to the needsof stakeholders are fundamental elements for mapping as comprehensively as possible the potential positive,
but also negative impacts that the Group’s activity has on the communities where our plants operate. Since
2015, a Creating Shared Value (CSV) model has been in force, centered on the integration of sustainability inthe business, in which the Company’s success is directly related to the prosperity of the communities where
it operates.
The CSV model, applied to all Business Lines, therefore introduces a new way of managing community relations
and integrating socio-environmental factors within our business processes and throughout the entire value
chain, with special reference to operations of business development, engineering and construction and procurement, in addition to the management and maintenance of assets.
Through specific context analysis tools, stakeholder mapping and the definition of materiality matrices andaction plans, the development of a business project is accompanied by initial exploratory approaches to its
final definition.

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In addition, Enel promotes a fair and inclusive energy transition, through global reconversion and hybridization projects, which currently involve more than 40 sites around the world, with the aim of finding sustainable solutions (focused primarily on the development of energy reconversion and hybridization, promoting the circular economy andinnovation) for the areas involved with the closure of conventional plants. By means of dialog with shareholders andbondholders, the Investor Relations unit collects feedback on how to integrate and improve the Group’s reporting
process and make its communications as effective as possible, meeting the needs of the financial markets.
Further information on risk management can be found in the “Our strategy for sustainable progress” section andin the “Engaging communities” and “Sound governance” chapters.

DIGITAL TECHNOLOGY

Risk definition
Cyber security

Risk of cyber-attacks and sensitive or massive corporate and customers data stealing, ascribable to a lack of securityof networks, operating systems and databases.
Reference scenario and description of risk
The speed of technological development, which brings an endless stream of new challenges, the frequency
and intensity of the ever-increasing number of cyberattacks, 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. Cyberattacks have changed dramatically in recent years: the number has grownexponentially, as has their level of complexity and impact, with timely identification of sources becoming increasingly difficult. Within the scope of the Group, the management of the cyber security risk results, among
other aspects, from the numerous contexts in which it operates (data, industry, and people), in addition to theintrinsic complexity and interconnection of resources which, over the years, have been increasingly integrated
into routine operating processes.
Mitigation actions and associated strategic goals
The Group has designed and adopted a holistic governance model in relation to cyber security, which is applied
to the Information Technology (IT), Operational Technology (OT) and the Internet of Things (IoT) sectors. The
framework is based on the commitment of Top Management, the global strategic approach, the involvementof all business areas, as well as the units engaged in the design and implementation of systems. The framework
also strives to use the best technology available on the market to design ad hoc business processes, also working on the human factor through initiatives targeted toward increasing awareness and knowledge regarding
cyber security by people, making them the first lever of company defense. Furthermore, the framework directs
the regulatory requirements regarding IT security, such as the execution of in-depth tests (in IT, OT and IoT
areas) that aim to identify and remove vulnerabilities, identify and strengthen people’s IT awareness and implement regulatory requirements related to IT security.
Moreover, the Group has defined and adopted a risk management method for IT security in accordance withrisk-based and cyber security by design approaches, thereby making the corporate risk analysis a key step inall strategic decisions and integrating the safety requirements along the entire solution and service life cycle.
Enel has also set up a Cyber Emergency Readiness Team (CERT) to respond to and proactively manage possible
incidents in the field of cyber security. In addition, since 2019, in order to mitigate exposure not only with technical countermeasures, the Group has taken out insurance on the risks related to cyber security.
Further information on risk management is provided in the “Digitalization” and “Innovation” chapters.

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Risk definition
Digitalization,
IT effectiveness,and service
continuity

Risk of managing ineffective business processes and supporting higher operating costs due to a lack of digitalization in terms of workflows coverage, systems integration and adoption of new technologies.
Risk of ineffective support of IT systems to business processes and operating activities.
Risk of exposure of IT/OT systems to service interruptions and data losses.
Reference scenario and description of risk
The 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 andadopting 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 andoperating assets that could lead to the exposure of IT and OT systems to service interruptions or data losses.
Mitigation actions and associated strategic goals
Control of such risks is guaranteed by a series of internal measures developed by the Group to oversee thedigital transformation. In particular, an internal control system has been set up, which introduces control points
along the entire IT value chain, enabling us to prevent the emergence of risks relating to such issues as thecreation of services that do not meet business needs, the failure to implement adequate security measuresand service interruptions. The internal control system oversees both the activities performed in-house andthose outsourced to external associates and service providers. Enel is also promoting the dissemination ofdigital culture and skills within the Group, so as to guide the digital transformation successfully and minimize
the associated risks.
Further information on risk management is provided in the “Digitalization” and “Innovation” chapters.

COMPLIANCE

Risk definition
Data protection

Risk of a breach in complying with applicable data protection and privacy laws.
Reference scenario and description of risk
In the era of digitalization and globalization of markets, Enel’s business strategy is focused on accelerating theprocess of transformation towards a business model based on a digital platform, by means of a data driven andcustomer-focused approach, which is being developed throughout the entire value chain.
The Company, which is present in more than 40 countries, has the largest customer based in the public utilities
sector (around 70 million customers), with a current workforce of approximately 67 thousand people; consequently, the Group’s new business model calls for management of an ever larger volume of personal data, toreach the financial and business results set down in the 2022-2024 Strategic Plan.
This implies an exposure to the risks associated with personal data protection (also due to the increasing volume
of privacy regulations in the majority of countries in which Enel is present). These risks can take the form of a lossof confidentiality, integrity, and availability of the personal data of customers, employees, and others (e.g. suppliers), resulting in the application of penalties in proportion to global sales, obstructing processes with consequenteconomic or financial losses and reputational damage.
Mitigation actions and associated strategic goals
In order to manage and mitigate this risk, Enel has adopted a global model of personal data governance, also
through the assignment of Data Protection Officers – “DPOs” – both at a global and Country level, as well as
through the adoption of digital compliance instruments to map applications and processes and manage relevantrisks to personal data protection, in compliance with the specific aspects of local sector regulations.
Further information on risk management can be found in the “Data protection” section of this chapter.

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Risk definition
Other compliancerisks

Other compliance risks: Antitrust compliance and consumers’ rights, Corruption, External disclosure. Financial
regulation compliance, Tax compliace, Compliance with other laws and regulations.
Reference scenario and description of risk
Enel may be exposed to the risk of judicial measures, administrative sanctions, economic or financial losses andreputational damage as a result of:• illegal or illicit conduct, including active and passive acts of corruption, perpetrated by personnel inside oroutside the Group 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 concerning permitting or contracts, regulation of electricity markets, international sanctions,etc.). .
Mitigation actions and associated strategic 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.: theCode of Ethics, the Zero Tolerance of Corruption Plan (“ZTC Plan”), the Policy on Human Rights, the Policy oninternational sanctions, the Enel Global Compliance Program (“EGCP”), the Model 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 ofinternational standard ISO 37001:2016 (international certification of anti-bribery management systems). Thiscertification 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 integrityin 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 thesematters.
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.
Further information on risk management is provided in the “Sound governance” chapter and the “Methodological note”.

In relation to the specific contexts pursuant to Italian Legislative Decree 254/16 concerning climate change, humanrights, and the fight against corruption, we invite you torefer to the sections dedicated to these topics in this Sustainability Report.

The other types of risk to which the Enel Group is exposed
are detailed in the “Risk Management” section of the Integrated Annual Report available on the website (www.enel.
com, “Investors” section).

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Transparency ininstitutional processes
Enel constantly manages relations with institutions (local,
national, European, and international) in line with the Enel
Compliance Program, providing complete and transparent
information with the aim of placing institutional counterpartsin the best possible position to make the decisions within
the sphere of their competence. Enel also contributes to theconsultation processes regarding political and legislative
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 politicaland legislative dossiers of corporate interest through carefulmonitoring and analysis (see also the chapter “Zero emissions ambition”).
The Enel Group has been enrolled in the EU voluntary transparency register since its creation in 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 the Code 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 whose sole 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 recruit recommendations, or awarding consultancy contracts). Enel and its subsidiaries are present invarious trade and employer 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
the form of membership fees in 2022 totaled approximately
9.6 million euros, compared to 8.4 million euros in 2021.(4) In
particular, in 2022 the three largest contributions in terms ofoverall amount concerned AELEC (Asociación de Empresas
de Energía Eléctrica) in Spain, Confindustria and Elettricità
Futura in Italy.(5)The institutional dialogue 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 issues:• development of energy policies: including, among othertopics, the strategic outlook of the sector, energy efficiency, the growth of renewables, smart grid development andenergy costs;(6)• increasing business competitiveness: including, among
other topics, tax regulation, labor law issues and environmental policies.(7)(4) These amounts include the contributions paid by Enel SpA (including the main Italian companies) and by its foreign subsidiaries Endesa, Enel Américas andEnel Chile.
(5) Specifically: AELEC (formerly UNESA) 1.9 million euros; Confindustria 1.5 million euros; Elettricità Futura (formerly “Associazione Nazionale delle Imprese
Elettriche”) 0.6 million euros.
(6) The 2022 contribution was 5.5 million euros.
(7) The 2022 contribution was 4.0 million euros.

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1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Values and pillarsof corporate ethics
2-15

2-16

2-23

2-26

3-3

205-1 205-2 205-3

405-1 406-1 408-1 409-1 413-1 415-1
A solid and dynamic ethical system, constantly oriented towards implementing best practices on the national and international levels is the foundational element of the Enel system of values underpinning the Company’s operating assets,
and of relations entertained with all its key stakeholders. A
system based on compliance programs, including the Codeof Ethics, Policy on Human Rights, the Zero Tolerance of Corruption Plan (ZTC Plan), Enel Global Compliance Program, theModel pursuant to Italian Legislative Decree 231/01, plus anyother national compliance models adopted by Group companies in accordance with local regulations.

Code of Ethics
In 2002, Enel adopted at Code of Ethics(8) that expresses thecommitments and ethical responsibilities to which it adheresin its operating assets, regulating and harmonizing corporate 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 be-

tween 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 the website https://www.
enel.com/investors/sustainability/daily-commitment/sound-governance-ethical-conduct/principles-underpinning-our-work/code-ethics.

Stakeholder reports
Any violation or suspected violation of the ethical system canbe reported, also anonymously, through a single platform at
Group level (“Ethics Point”), which is accessible at www.enel.
ethicspoint.com.(9) The Audit Function receives and analyzes
these reports, performing the related checks and ensuring
uniform treatment at Group level, in compliance with Company policies and local regulations.

KPI
Reports received

The reports management process is governed by thewhistleblowing policy, “Management of anonymous andnon-anonymous reports”, which guarantees anonymity andprotection against any form of retaliation and also ensuresadequate protection against groundless reports made maliciously to harm or cause prejudice to individuals and/or
companies.

UM

2022

2021

2020

2022-2021

%

n.

172

153

151

2

+12.4

n.

29

44

26

-15

-34.1

Conflict of interest/corruption

n.

9

8

2

+1

+12.5

Misappropriation

n.

4

5

14

-1

-20.0

Labor practices(11)

n.

11

27

9

-16

-59.3

Violations related to incidents of:(10)

Community and society

n.

-

1

-

-1

-

Other reasons

n.

5

3

1

+2

+66.7

(8) Last update: February 2021.
(9) The Ethics Channel can also be used to send reports regarding the Group’s commitments regarding human rights.
(10) Of the 172 reports received in 2022, 15 are being analyzed. During the year, the verification of all the reports received in 2021 was completed: the number ofconfirmed violations for 2021 was therefore revised from 41 to 44. The three additional violations are to be ascribed to a case of conflict of interest and twocases of inappropriate behaviour related to labor practices.
(11) In 2022 4 violations were recorded relating to cases of discrimination at the workplace, in particular cases of harassment..

Sound governance411

During 2022 172 reports were received, recording a slightincrease as compared to the number of reports received
in 2021 (153), mostly in countries on the South American
content.
The analyses confirmed a limited number of violations, decreased as compared to 2021, referring to the behavior of
employees and/or suppliers that does not comply with thepolicies on the protection of persons or the internal procedures regarding:• “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 to respect fordiversity and non-discrimination and the failure to com-

ply with the internal procedures on health and safety issues, principles approved by the Group’s Human Rights
Policy;• “Fraud/misappropriation” to the detriment of the Company.
In addition to having adopted disciplinary measures and/or sanctions against the responsible parties, during theyear training and awareness initiatives implemented by thecompanies of the Enel Group continued in order to promote behaviors that are in line with the adopted Code of
Ethics and policies, which include the events organized in
the South American countries to disseminate a culture of
integrity and ethics in the Company (“semana etica”).

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 to bepreventively monitored – is based on illicit conduct generally considered as such in most parts of the countries, suchas, for example, offences of corruption, crimes against the
public administration, fraudulent accounting, money laundering, offences committed in violation of the regulations
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 anadministrative (essentially criminal) liability into the Italian legal
system for companies in respect of certain types of offences
committed by directors, managers, or employees in the interest of or for the benefit of the companies concerned. Al-

ready in 2002, Enel – the first in Italy – adopted an Organizational and Management Model that meets the requirementsof Legislative Decree 231/01 (Model 231). Since then, it has
been constantly updated in line with the reference regulatory
framework and current organizational context.

Active and passive fight against corruption
3-3

205-1 205-2

In compliance with the 10th Global Compact principle, according to which “companies are committed to combating
corruption in all its forms, including extortion and bribery”,
Enel intends to pursue its commitment to fighting corruption in all its forms – whether direct or indirect – by applying 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 compli-

412

Sustainability Report 2022

ance 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 public administrations andamong private individuals, environmental offences,
corporate offences and, for Italian companies, manslaughter, severe personal injury or grievous bodily harmcommitted in violation of the rules on the protectionof occupational health and safety), as described by the1Letter to stakeholders

2

We empower sustainable progressapplicable regulations on corporate responsibility (i.e.
“Compliance Program”) in the various countries where
the Group operates (for example, Organizational Model
231 for Italian companies, the “Modelo de prevención deriesgos/Programa de Integridade” for Group companies
in Spain and South America);• the Enel Global Compliance Program (“EGCP”), a governance tool aimed at strengthening the Group’s ethicaland professional commitment to preventing offences
committed outside Italy that might result in corporate
criminal liability and reputational risks. The EGCP applies
to the Group’s non-Italian companies and supplements
any compliance programs adopted by the same companies, in compliance with local regulations.
The mentioned governance measures (in relation to which
we refer you to the specific section of the website), together with the current body of procedures, outline an effective prevention system, which is an integral part of theGroup’s Internal Control System.
In 2022 the Audit Function plan included the analysis of thesuitability of the Internal Control system relevant for the
purposes of the Anti-Bribery Management System for all

3

Materiality analysis

4

Our performance5

Appendix

Group Business Lines and the staff Functions; the specificaudit work programs included verifications for the assessment of the risk and suitability of the design and operationof the controls, to complement the periodic activities ona sample basis as required by the Compliance Programs
adopted by the Group companies.
In 2017 Enel SpA was among the first companies in the world toobtain 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, carriedout by a primary accredited certification body, which was carried out in two separate phases, aimed primarily at certifying
the adequacy of the design of the Enel Anti-Bribery Management System (in terms of governance, roles, and responsibilities, control procedures, etc.), and secondarily at assessing
the level of application and effectiveness.
After Enel SpA obtained certification ISO 37001 for its anti-bribery management system, it gradually extended the37001 certification plan to theGroup's main Italian and foreign subsidiaries, guaranteeing
the maintenance of those already obtained.

Data protection
3-3

418-1

Protection and processing of personal data are an important challenge for Enel in the era of digitalization andmarket globalization, and also a constant commitment toensure continuous improvement of the service we supply
to our customers.
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 inaccordance 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 andGlobal Digital Solutions: a unit that promotes privacy bydesign from phase of process 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 Busi-

ness 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 the European 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 processes 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 manage-Sound governance413

ment 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 ofthe 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 the principles 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 the data
subjects and to monitor the current risk of each pro-cessing 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 forthe 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;• Analytics, 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 Policy on Human Rights
expressly require suppliers to have a clear commitment
and to respect the main obligations required by the applicable privacy regulation. Furthermore, a specific clause in
the Group’s General Contract Conditions extends the principles of the Enel privacy policies to all suppliers, requiringthem to be committed to handing personal data in compliance with the obligations imposed by industry legislation.
In 2022, the Group’s companies handled more than 19,105
communications concerning personal data protection
from customers, of which: (i) 595 in Romania, (ii) 5,009 in
Iberia, (iii) 13,376 in Italy and (iv) 125 in Latin America.
Furthermore, the same companies collaborated with thenational authorities, receiving 134 requests for information and clarifications, of which: (i) 2 in Romania, (ii) 105 in
Iberia, (iii) 5 in Italy and (iv) 22 in Latin America.

Procedures started by competent Supervisory Authorities
With specific reference to Italy, on March 8, 2021, theData Protection Authority started a procedure, based onsome reports from consumers, for the adoption of corrective measures and sanctions against the Servizio Elettrico
Nazionale (SEN) for presumed violations of privacy regulations, in particular due to the performance of undesired
phone calls and the wrongful provision of personal data
(POD, supply address, tax code, etc.) to unauthorized parties for the promotional purposes of third parties. SEN has
filed a statement of defence, contesting the charges. On
April 26, 2021 a hearing was held at the Authority and adecision is pending.
Furthermore, on January 18, 2022, the Data Protection Authority issued an order against Enel Energia, imposing afine for approximately 26 million euros on the Company forasserted violations of the privacy regulations. In particular,
the Authority contested the inadequacy of Enel Energia’s
surveillance and control activities for the internal data processing processes, within the scope of telemarketing ac-

414

Sustainability Report 2022

tivities, as well 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 contested by Enel Energia on February 9,2022 before the Civil Court of Rome which, with an order
dated March 20, 2022, ordered the immediate suspensionof its effects. On February 15, 2023, the Court of Rome fully
upheld Enel Energia’s appeal and, as a result, canceled thepenalties issued by the Authority. The publication of thereasons is pending.
Furthermore, during 2022, the Data Protection Authority carried out two inspections, the first concerning
e-distribuzione, regarding the handling of personal data
within the scope of the so-called “Indemnification system”, which ended with the dismissal of the proceedings, and the second concerning Enel Energia, targeted
toward acquiring information on marketing and telemarketing activities carried out by agencies on behalfof the company.

1

Letter to stakeholders

2

We empower sustainable progress

In 2022, in Spain the local control Authority, based oncomplaints presented by the data subjects, started 63
administrative proceedings against Endesa Energía SA,
Endesa X Servicios SL, Edistribución Redes Digitales SL
and Energía XXI Comercializadora de Referencia SL. Manyof these proceedings have been dismissed and, in the
majority of the cases, the events that triggered the complaints were resolved thanks to out-of-court settlements.
During 2022, Endesa Energía SA received two penalties
equal respectively to 50,000 and 40,000 euros, issued dueto the conclusion of contracts without the consent of thedata subject.
In Portugal, in 2022, the local control Authority started 23
proceedings against Endesa Energía SA – Sucursal Portugal, as a result of sending direct marketing communications to data subjects without their valid prior consent.
Endesa presented their defence against these proceedings and is waiting for the decision of the local Authority. With regard to prior proceedings related to marketing
communications made in 2019 and 2020, for which Endesa has already presented its defence, in 2022 the Authority
issued 18 judgments, two of which led to the dismissal of
the proceedings, whereas the others issued penalties withan overall value of 96,000 euros.

3

Materiality analysis

4

Our performance5

Appendix

In Romania, during July 2022, the local control Authority,
after an investigation, issued a penalty equal to 49,337 lei(10,000 euros) against Enel Energie Muntenia SA for violation of article 32 of GDPR. The company has contested
this penalty and is still waiting for the final judgement of
the Authority.
In relation to Brazil, ENEL SP notified the local Authority
about a data violation that took place in November 2020.
This administrative procedure was dismissed without penalties by the Authority in August 2022. Furthermore, between 2021 and 2022, ENEL SP received 2 requests for information from the local Authority regarding 2 complaints
from data subjects, for which the company presented thenecessary clarifications and after which there were no further updates.
In Colombia, on February 10, 2021, the local control Authority started proceedings against Codensa due to thefailure to observe the terms specified in the regulation
concerning the online maintenance of the personal data ofa data subject on the company’s website. On February 23,
2021, Codensa filed an appeal regarding these proceedings. On November 25, 2022, the proceedings were dismissed due to lack of evidence sufficient for demonstrating the asserted violations of the local privacy regulation.

Data breach
Regarding data breaches, during 2022, seven violations of
personal data were recorded within the scope of the EnelGroup.
In particular, in Italy, two violations of personal data were
notified to the Data Protection Authority. As regards Enel
Energia, the latter notified the Authority of a violation that
occurred in April 2022, concerning the personal data ofsome customers caused by a hacker attack against the IT
systems of a supplier of Enel Energia. The company provided the data subjects with the necessary information. The
analysis carried out by Enel Energia showed that there wasno abnormal use of the personal data and that the supplierthen reinforced their safety measures. As regards e-distribuzione, the latter reported a data breach caused by thetheft of IT equipment by unknown persons who entered

the premises of a company suppliers. The analysis carriedout by e-distribuzione did not find any abnormal use of theinvolved personal data.
In Spain, the company Endesa Energía SA notified the local
Authority of a data violation consisting in the publicationof some advertisements in Facebook for the sale of the access credentials assigned to various suppliers for accessing some company applications, which resulted in fraudulent contracts without the consent of the data subjects.
In Colombia, the local control Authority was notified of four
data breaches, three of which involving the unauthorized
dissemination of personal data and one a ransomware attack (RansomHouse type) which affected the websites andactivities of a supplier.

Sound governance415

Tax transparency
3-3

416

207-1

207-2

207-3 207-4

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Tax strategy
Since 2017, the Enel Group has had a tax strategy understood as 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 its acknowledgement and application.

Tax strategy objectives
The Board of Directors of Enel SpA (BoD) defines the tax
strategy of the entire Group in order to ensure equitable,accountable and transparent tax contribution with the aimof ensuring uniform management of taxation for all concerned entities, which is inspired by the following logic:• correct and timely determination and settlement of tax-

es due under the law and implementation of the respective obligations;• correct management of the tax risk, understood as therisk of violating of tax rules or abusing the principles andpurposes of the tax system.

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 the promotion of a corporate culture that is based on the values of honesty, integrity andthe principle of legality.
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 updates.

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 and purpose of the applicable tax rule or system are respected. In
addition, the Enel Group does not engage in behaviors andoperations, domestic or cross-border, that result in purely
artificial constructions that do not respect economic real-

ity and which may be reasonably assumed to offer 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 aresult of asymmetries between the tax systems of the different jurisdictions.

Tax transparency

417

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 in line with thearm’s length principle, an international standard established by the Model Tax Convention and referred to in theOECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (hereinafter also referred toas the “OECD Guidelines”).
To this end, the Group has put internal policies in place
to support the methods set out in the OECD Guidelines,
which provide for the application of the Comparable Uncontrolled Price – CUP method (which compares the priceof goods and/or services transferred in a transaction concluded between associated companies with the price applied in transactions between independent third parties).
In addition, consistent with the applicable regulations, thesigning of Advance Pricing Agreements (APAs) with local
tax authorities is promoted. These concern the definitionof transfer pricing methods, the allocation of profits andlosses to permanent organizations, and the application ofrules regarding cross-border flows between Group entities.
With specific regard to intercompany financial transactions, the Enel Group has organizationally adopted a centralized finance model for its subsidiaries, which requiresthat 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.
Finally, when analyzing the size of intercompany transactions, it can be seen that these account for a minimal percentage (generally around 7%(1)) of the Group’s total aggregate revenues,(2) due to the fact that the energy businessis conducted almost entirely within the boundaries of theindividual country, from the power generation process tomarket sales. In 2022, intercompany transactions as a percentage of the Group’s total aggregate revenue amounted
to approximately 4%.

Intercompany transactions 2022

Average intercompany transactions (2019-2021)

4%Intercompany revenues

93%

96%
7%

Group’s total revenues(1)

Intercompany revenues

Group’s total revenues

The average value shown is higher than the average value for previous years due to the results for the 2021 tax year, which, with the same number of intercompany transactions, saw an exponential growth in commodities and associated hedging transactions, with impacts on revenues, which led to an increasein this percentage to 9% in the reporting year.
(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) for the respective tax periods (i.e., 125,029 million euros in 2019; 108,165 million euros in 2020; 156,619 million
euros in 2021, and 267,912 million euros in 2022).

418

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Low-tax jurisdictions
The Group does not make investments in or through countries considered to be tax havens for the sole purpose of
reducing its tax burden. Such investments may only be
proposed if they are supported by sound economic andstrategic reasons and have the aim of developing the activities included in the Group’s corporate purpose.

In cases where, in circumscribed situations (for example, inthe case of the purchase of companies from third parties),
the presence of structures created for the sole purpose of
reducing the tax burden or located in territories qualified
as tax havens is found, the Group is committed to the elimination of such structures at the earliest practicable time.

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.

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.

Tax governance, control and risk
management
3-3

207-2

Governance body
Enel’s organization model provides: i) for a constant flow of
information to the Board of Directors by the Tax unit (“Toneat the top”) with regard to the tax risk management andcontrol system and the Tax Transparency Report, in which
all relevant tax aspects of the Group are set out; ii) thatthe Holding’s Tax Affairs unit has the task, among others,of implementing the Group’s tax strategy defined by the
Board of Directors, identifying, analyzing and managing

the various optimization initiatives, monitoring the mostsignificant tax issues, and providing support to the various
Business Lines; iii) that in addition to the Holding Function,
the Tax Affairs units in the different countries, acting in accordance with the values and principles set out in the tax
strategy, are 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 organization and control system and which are considered key points of reference that all parties, depending on their type of relationship with the Group, are required to observe.(3) The various corporate policies and procedures applicable both atGroup level and country level govern the activities, as wellas 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 whencarrying out activities. Specifically in relation to taxation,in addition to the tax strategy there are specific organizational documents in force – both at global and local level– regarding the processes of tax compliance, tax planning,tax monitoring, transfer pricing and tax risk management.
The general principle is that the Tax units must be of the(3) For example: Code of Ethics; Zero Tolerance of Corruption Plan; Enel Global Compliance Program (EGCP), corporate policies, models and procedures; thetax strategy; the Internal Control and Risk Management System; the proxy system; the sanctions system referred to in the applicable CCNL; any other documentation relating to the current control systems; the relevant accounting standards; procedures and IT applications.

Tax transparency

419

appropriate 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, spe-cific 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.

Tax risks
The Group has a Tax Control Framework (TCF) the main aimof which is to provide the Tax units with a single and consistent set of guidelines for adopting a correct and effective approach to tax risk management within the Group.
The framework sets out guidelines and methodologicalrules so as to assess, monitor and manage the relevant tax
risk for the companies consistently, in accordance with theprinciples and guidelines set out by the tax strategy andTax Risk Policy, and in the knowledge that the Group companies operating in different jurisdictions must adopt the
TCF with respect for the specific corporate context anddomestic regulations of each country in question.
In this regard, Enel has adopted a Tax Risk Policy the main
objective of which is to provide unambiguous and consistent guidance to the Tax units when adopting the TCF atthe local level.
In accordance with the established principles and guidelines, the Enel Group aims to manage the tax risk proactively and believes that adopting a TCF can ensure thetimely detection, correct measurement and control of the
tax risk.
The task of the TCF is to identify the sources of tax risk
for the purpose of compliance and interpreting tax regulations, while mapping out the respective processes andactivities in order to form a network of risk detectors, to be
associated with the resulting control measures.

In particular, as the set of detectors and control measures
identify sources of risk, the TCF can perform a broad spectrum of control. As such, any materialization of the tax risk
can be intercepted and managed by each Tax unit in question. The effectiveness and ongoing updates of the TCF
are ensured through periodic monitoring of the risk map,
regular internal audit processes, as well as through the tax
authority systems set out under cooperative complianceschemes (where implemented).
The results from the monitoring of tax risks are periodicallybrought to the attention of the competent Functions andcorporate bodies, including to establish the most appropriate way to mitigate such risks.
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(4)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.(5)Finally, with regard to the outcome of this risk control activity and to potentially uncertain tax positions, please referto the relative indications and comments in the Integrated
Annual Report.

Participation in cooperative compliance schemes
For companies that meet the legal requirements for participation, the Enel Group promotes participation in cooperative compliance schemes where they exist in the various countries in which it operates.
In particular, Enel participates in the Collaborative Fulfilment(Adempimento Collaborativo) scheme in Italy,(6) for larger
companies, in the equivalent Code of Good Tax Practices(Código de Buenas Prácticas Tributarias(7)) scheme in Spainand is collaborating with the federal tax authority in a pilot
project for the creation of a local Cooperative Tax Compliance model (Projeto CONFIA – Conformidade Cooperativa Fiscal) in Brazil.(8) In addition to the above-mentioned
countries, various activities are under way for potential
accession to additional cooperative compliance schemes.

(4) 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.
(5) 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.
(6) https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/regime-di-adempimento-collaborativo/elenco-societa-ammesse-al-regime.
(7) https://sede.agenciatributaria.gob.es/Sede/colaborar-agencia-tributaria/relacion-cooperativa/foro-grandes-empresas/codigo-buenas-practicas-tributarias/adhesiones-codigo-buenas-practicas-tributarias.html.
(8) https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/confia.

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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

3

Materiality analysis

4

Our performancebased on their size and membership requirements.(9)5Appendix

Cooperative
Compliance Index:

95.7

%

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 through theCompany’s internal channels also include those relating totax. The Group’s Code of Ethics is the framework of “eth-ical management” which Enel operates, tying in fully withthe tax strategy. Provisions for violations of the Code of
Ethics are appropriate to ensure the effectiveness of therequirements contained therein and should be understoodto extend to the provisions of the tax strategy.

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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 to providing a transparent explanation of the tax issues that can be of interest
to third parties, also on its website, making the latter an
information hub that is easily accessible and understandable to all.
This commitment also extends to the Group’s other listedcompanies. For example, Endesa has once again topped
the best practice ranking for transparency and tax responsibility according to the Contribution and Transparency
Report 2021 published by the Haz Foundation. Endesa has
been ranked top among the IBEX 35 companies for its bestpractices in terms of tax risk management and control.
Endesa also obtained the t*** transparency seal awarded
by the Haz Foundation, which certifies compliance with
twelve indicators analyzing various good practices in thearea of fiscal responsibility. These awards demonstrate
Endesa’s solid commitment to tax transparency and responsibility in terms of economic and social contribution
in the jurisdictions in which it operates.
Additionally, all stakeholders can send in their remarks, questions and opinions using the contact information channels
provided by Enel and found on the website: (https://www.
enel.com/media/explore and https://www.enel.com/investors/overview).

Finally, the Enel Group ensures transparency and integrity in its relations with the tax authorities in the event ofaudits on both the Group companies and third parties. To
consolidate this transparency with tax authorities, the EnelGroup promotes engagement in cooperative complianceschemes for companies that integrate the requirementsof their respective domestic regulations in order to reinforce their relations. 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
Mutual Agreement Procedures (MAP) for the settlementof international disputes, which include the direct involvement of tax authorities from the contracting countries.
Commitment to transparency is also reflected with regard
to customs. In this regard, some of the most active companies in dealing with customs authorities (Enel Global
Trading SpA and Enel Produzione SpA) obtained the status of Authorized Economic Operator (AEO) respectively in2016 and 2015. Those qualified as an AEO are deemed to
be trustworthy entities due to them having demonstrated
an adequate level of compliance of their processes. Said
qualification requires compliance with certain criteria, including “customs and tax compliance”, to be demonstrated and maintained through an appropriate level of control
and training.

(9) 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 to join
(i.e., because their size is below statutory thresholds), even though the schemes exist in their countries. Nevertheless, the Group’s overall coverage was morethan 77% in terms of cooperative compliance companies’ revenues compared to the Group’s revenues.

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Tax advocacy
Enel consistently acts with a transparent and collaborative
approach with all national and international institutions andtrade associations to support the development of effective
tax systems in the various countries where it operates.
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 supports 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 throughparticipation in national and international associations
is essential in order to contribute to the development of
new regulatory procedures by providing qualified technical support on complex business matters. In this respect,
the most representative organizations in which Enel has
been involved for years to support the evolving tax legislation are: Assonime,(10) EuropeanIssuers,(11) Confindustria(12)and Foro de Grandes Empresas.(13) It also participates in a
CSR Europe project(14) for a collaborative platform on tax
responsibility and transparency, with the aim of develop-

ing an index to assess the performance of companies fromall sectors in terms of fiscal transparency and responsible
fiscal behavior.
In 2019, Enel joined the European Business Tax Forum(EBTF), an association that aims to facilitate a public debate on taxation by providing a balanced and comprehensive perspective of the taxes paid by companies. In view ofthis objective, tax information and data are provided to thevarious stakeholders concerned. On its website (https://
ebtforum.org), the Forum continuously publishes various
studies on tax transparency: Total Tax Contribution,(15) Best
Practices for Good Tax Governance(16) and Tax Transparency and Country-by-Country Reporting.(17)Furthermore, in 2021 Enel adhered to the B Team Responsible Tax Principles, that is, the principles developed by the
B Team(18) for promoting responsible and sustainable tax
practices for a better future. B Team is an organization created by a group of multinationals, with the contribution ofcivil society, investors and representatives of international
institutions, in order to promote responsible and sustainable tax practices.
Through its active and public participation in all these associations, Enel believes it can make its own technical contribution by sharing its experience in support of fair, effective and sustainable taxation.

(10) https://www.assonime.it/Pagine/Home.aspx.
(11) https://www.europeanissuers.eu/.
(12) https://www.confindustria.it/home.
(13) https://sede.agenciatributaria.gob.es/Sede/colaborar-agencia-tributaria/relacion-cooperativa/foro-grandes-empresas.html.
(14) https://www.csreurope.org/newsbundle-articles/csr-europe-launches-new-collaborative-platform-on-tax-responsibility-and-transparency.
(15) 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, including in 2021 a dedicated section for Country-by-Country Reporting.
(16) The paper was drafted by a group of tax directors from three organizations (Tax Executives Council of the Conference Board, The B Team and the 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 theirstakeholders.
(17) First study dedicated exclusively to Country-by-Country Reporting data.
(18) https://bteam.org/.

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Reporting
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Acting with honesty and integrity is one of the main cornerstones of Enel tax strategy, as is our commitment totransparency.
The publication of Country-by-Country Reporting (CbCR)(19) supplemented with details of our overall tax contribution in the main economies in which the Group operates (hereafter also “Tax Transparency Report”), underlines
the importance that the Group attributes to tax related issues, to their social role and, in general, to transparency asa factor 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 continuingalong a pathway targeted at supplying an increasingly indepth and clear vision of our tax position.

As of 2019 (FY 2018-2017), we have adopted a Total Tax
Contribution model for the main countries where we operate, providing evidence of taxes paid and of withholding
tax deductions.
Beginning in 2021 (FY 2020), on the other hand, we adopted an integrated model: the Tax Transparency Report. Thisis prepared consistently with the rules provided for under
OECD Country-by-Country Reporting(20) and includes information and data for Total Tax Contributions in the main
countries where we are present.
The integrated model of the Tax Transparency Report isavailable on our site (https://www.enel.com). The Group believes that this model ensures a broad vision and a detailed
measurement of the organization’s contributions to economic and social development in the regions/countries inwhich 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(21) 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 anapproach adopted by the OECD,(22) the Tax Transparency
Report classifies the different taxes into categories anddistinguishes them between those that constitute an expense for the Company (taxes borne) and those that theCompany 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 and collected, 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 theincome 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 (for example, 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 or social welfare contributions debited to workers that are normally withheld by the employer).
Products – Taxes on products and services: indirect tax-(19) See the circular Assonime (Association of Italian Joint Stock Companies) 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 GRI207), in which it is clarified that it is possible to make reference to Country-by-Country reports sent to the Agenzie delle Entrate (Italian Revenue Agency)
made public voluntarily, even if they are related to the preceding tax period with respect to the time period considered in the Non-Financial Disclosure.
In this regard, the Group has decided to report the information for the current year, prepared consistently with the rules provided for under OECD Country-by-Country Reporting, actually anticipating by a year the activities required for tax reporting.
(20) Beginning 2018, the Enel Group presented the Country-by-Country Reports for the years 2016-2021. This was by way of transmission thereof to the ItalianAgenzia delle Entrate which in turn supplied them to the other States with which an agreement is in force for the exchange of information, in compliancewith the indications of Action 13 of the BEPS project, as amended. Action 13 is a project in which the OECD and the countries of the G20 have participatedin order to reply in a coordinated and 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.
(21) The data for taxes paid includes payments on account, taxes for previous years, including after assessments, net of repayments and rebates obtained.
Interest and penalties are not considered.
(22) Working Paper no. 32, “Legal tax liability remittance responsibility and tax incidence”.

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es 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,(23) customs duties, import duties, taxes on insurance contracts,
non-deductible VAT) as well as taxes collected (e.g., VAT
paid, excise duties,(24) 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 onproperty and the use of real estate, capital tax applied on
the increase of risk capital, taxes on the transfer, purchaseor 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 financial transactions
that imply loans or borrowings from a foreign source), andtaxes collected (e.g. taxes on leases collected by the lessor
and paid to the government).
Planet – Environmental taxes:(25) 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 management ofwaste, noise, water, land, soil, forests, biodiversity, wild animals and fish stocks to be paid by the entity. Examples oftaxes borne: taxes on the value of the generation of electricity, taxes on the production of nuclear fuels and carbon
tax. Examples of taxes collected: 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).(26) With reference to the list of companies
in the Group and their activities, please refer to the specific prospectus in the Integrated Annual Report 2022.(27)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” isunderstood in the broadest possible sense(28) to include allrevenues, comprising those from extraordinary operations.
Cross-border inter-company 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.(29)
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 each tax jurisdiction. The Profits (Losses) before income taxes must(23) With the exception of those recorded under environmental taxes (e.g. duties on gas and electric energy).
(24) With the exception of those recorded under environmental taxes (e.g. duties on gas and electric energy).
(25) 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 Organization 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”, para. 2.3 and 2.6 (https://ec.europa.eu/eurostat/documents/3859598/5936129/KS-GQ-13-005-EN.PDF) e 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#).
(26) 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 thePermanent Establishment. Finally, all stateless companies of the Enel Group are flow-through entities incorporated in the same country in which income isimputed and is effectively taxed in the partner company (e.g., the United States).
(27) See circular Assonime 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 makereference to other sources (known as “incorporation by reference”) such as the Directors’ Report in the Consolidated Financial Statements or in the annexes
for the list of Group companies and their main activities, and the Directors’ Report or other sections of the NFD with regard to information already contained
therein on uncertain tax positions and on any other information relevant for the purposes of GRI 207.
(28) 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.
(29) Revenues do not include payments received from other entities within the scope that are considered dividends in the tax jurisdiction of the payer.

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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.
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.(31)3

Materiality analysis

4

Our performance5

Appendix

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 remuneration, please see the Sustainability Report as well as theTax Transparency Report.
Capital:(32) the accounting value of share capital as takenfrom the financial statements of all the entities within thescope.
Profit reserves: this item represents the amount of net
profit realized by the entities within the scope in each tax
jurisdiction over the past years, net of dividends paid andany other reduction due to losses, capital increases, etc.

(30) 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).
(31) Tangible fixed assets do not include cash and cash equivalents, intangible assets or financial assets.
(32) The introduction of the disclosure related to the “Capital” and “Undistributed profit” items in the Sustainability Report 2021 further enriches the Reportcontent in relation to OECD CbCR. Furthermore, the introduction of this information, in particular that related to “Undistributed profit” supplements thedisclosure with that required by the Directive 2013/34 (amended by Directive (EU) 2021/2101) on the topic of the publication of income tax information(the so-called public CbCR). This additional information provides the disclosure with this content in advance of what is required under Article 48-(8) of theabove-mentioned Directive.

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Tax Transparency Report – general analysis
Total Tax Contribution (€/mil)
15,00013,979.9
11,465.5

12,0009,000

9,201.9
7,383.4

6,000
3,000
-

Total Tax Borne

4,778.0

4,082.1

FY 2022

FY 2021

Total Tax Collected

Total Tax Contribution

In 2022, the Total Tax Contribution(33) (TTC), with respect
to all the countries in which we operate, was 13,979.9 million euros.
2022 showed an increase in the total tax contribution of
2,514.4 million euros (+21.9%) compared to 2021.(34)This trend is the result of an increase in both tax borne andtax collected and reflects the economic conditions of themarket in question characterized by a significant increasein raw material procurement costs and a sharp rise in electricity and gas prices.
In this context, on an overall level, both revenue-related
indirect taxes and, albeit more moderately, profit-, laborand property-related taxes grew significantly. More specifically, an analysis of the total tax contribution data broken
down into the five tax categories shows:i. a significant increase in taxes on products and services, mainly as a result of higher revenues due to theincreased quantities of electricity and gas (especially in
Italy and Spain) sold at growing average prices;
ii. an increase in environmental taxes, influenced by the
extraordinary repayments received in 2021 in Spain.
Net of this effect, environmental taxes have in fact decreased mainly due to the suspension/reduction of energy excise taxes adopted by the governments of somecountries to cope with high energy prices;
iii. an increase in taxes on profits due to both the introduction of extraordinary levies on companies operatingin the energy production and distribution sectors andthe effects of mechanisms for payment on account andbalance of income taxes;(35) andiv. an increase in property and labor taxes, consistent withthe dynamics of the business, in which there are increasing levels of investment and staff remuneration.(36)
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.
An analysis of the tax contribution from a geographicalperspective shows that the distribution of taxes paid isconsistent with that of the revenues generated and thenumber of staff employed: Italy, Spain and Brazil together
account for 85% of the tax contribution, around 84% ofrevenues and around 75% of employees.
The distribution of the total contribution in the various
countries in which the Group operates is shown in the table below.

(33) The total tax contribution has been calculated considering the main countries in which the Group is present. These represent more than 99% of revenues
and more than 99% of income taxes paid. For all the other countries, the income taxes have nonetheless been indicated in detail. The following countries
are included: Italy, Spain, Brazil, Colombia, Portugal, Peru, Argentina, Romania, Chile, France, the United States, Canada, Germany, the Netherlands, Panama,
Mexico, Greece, Guatemala, India, South Africa and Costa Rica.
(34) 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 2021 figures presented in this document may not coincide with that represented in the Enel Group’s “Sustainability Report 2021”.
(35) 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 fully recognized only the following year.
(36) Net of the effect related to Russia, whose activities are effectively divested.

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Total Tax Contribution per country(€/mil)3

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Appendix

Total Tax Borne (cash accounting)Total Tax Collected (cash accounting)Total Tax Contribution (cash accounting)

Italy

Spain
4,229.2

1,687.6
5,929.1

3,018.4

1,699.9

1,330.8

BrazilColombia

2,071.8

Portugal

70.1

257.8

96.2
265.0

471.0

2,884.5

Peru
232.6

812.6

400.9

7.2

136.4

Argentina

Romania

Chile

France

166.8

173.7

61.3

220.4

202.7

145.8
154.2

192.8

53.6

29.0

131.5

8.4

USA&Canada

Germany

Netherlands

Panama

22.2

5.5

113.9

60.9

114.1

138.8

45.6

37.6

78.0

0.3

23.4

32.1

MexicoGreeceGuatemala

India

5.6

5.4

17.3

3.5

6.4

18.3

South Africa

Costa Rica

6.3

1.4

2.9

4.2

4.3

4.4
0.1

6.9

12.0

21.7

23.7

1.4

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Tax Borne (€/mil)Profit taxes

Property taxes

2022

Employment taxes

355.7

Taxes on products and services

Environmental taxes

1,012.7

4,778.0
1,927.6

808.8

2021

307.5

673.3

694.2

4,082.1
1,775.3

771.4

533.8

2022 ≠ 2021
48.3
152.3

318.5
37.4

In 2022, the Total Taxes Borne(37) amounted to 4,778.0
million euros,(38) an overall increase of 695.9 million euros(+17.0%) compared to 2021.
This increase affected all tax borne categories and especially taxes on products and services, environmental taxes
and taxes on profits.
The payment of taxes on products and services increasedby 318.5 million euros, due to higher payments in (i) Brazil (+185.6 million euros), mainly as a result of an increasein social taxes PIS (“Programa de Integração Social”) andCOFINS (“Contribuição para Financiamento de Seguridade
Social”(39)) following new clarifications provided by the competent authorities for the application of these taxes, andSpain (+114.1 million euros) where revenues increased as aresult of rising electricity prices.
The payment of environmental taxes increased overall by
139.5 million euros. The largest increases were recorded in:i. Spain (+80.7 million euros) where, on the one hand, taxes paid relating to the “canon hidráulico” (water tax) increased compared to 2021 (+270.6 million euros), a year
in which extraordinary repayments(40) were received,

139.5

695.9

and on the other hand, payments relating to the “Impuesto sobre el valor de la producción eléctrica” (tax onelectricity production) decreased (-204.2 million euros),due to the suspension of this tax for the entire year;
ii. Italy (+41.2 million euros) as a result of paying the coalexcise duty adjustments for 2021, due to higher consumption in 2021 compared to 2020;
iii. Chile (+16.0 million euros) due to the increase in electricity production.
The payment of income taxes has increased overall by 152.3
million euros. The largest increases were recorded in:i. Italy (+167.3 million euros) due to the introduction of extraordinary contributions charged to companies operating in the energy production and distribution sectors
and higher advance payments made in 2022 compared
to 2021 as a result of the method used to calculate
the same(41) and the inclusion of a new company in thescope;(42)ii. Spain (+95.3 million euros) due to both lower depreciation and amortization as a result of extending the tax lifeof certain production facilities and the payment of taxes(37) Taxes borne are taxes that constitute a cost for a company.
(38) Taxes borne include, among income taxes, specific corporate income taxes of 1,799.8 million euros paid in 2022 and 1,723.3 million euros paid in 2021.
(39) The exclusion of the ICMS (“Imposto sobre Circulação de Mercadorias e Serviços”) from the basis for calculating the PIS (“Programa de Integração Social”)
and COFINS (“Contribuição para Financiamento de Seguridade Social”) on which Brazil’s Federal Supreme Court (STF) ruled in 2021, was a controversial topic
in the country and the subject of much debate in that year. In 2022, Enel revised its methodology for calculating PIS/COFINS taxes in light of new clarification
provided by the competent authorities, which resulted in an increase in taxes paid.
(40) The repayment refers to the amounts paid during the period 2013-2020. Following a judgment of the Spanish Tribunal Supremo, the charge was repaid as
it was declared non-applicable.
(41) In the case in question, the payments on account (calculated using the historical method and partly using the forecast method) made in 2022 increased due
to an increase in taxable income between 2020 and 2021, as well as a higher expected income in 2022 than in 2021.
(42) Taxes on Enel Hydro Appennino Centrale, the company acquired in 2022, were paid in 2022.

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2022

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related to previous years, made following a restatementof the tax base; andiii. Colombia (+18.7 million euros) due to an increase in taxable income of some companies related to an improvement in operating results.
This was partially offset by a reduction in taxes on profits
in:iv. Brazil (-63.7 million euros) due to both a change in theway some entities(43) pay taxes during the year and a reduction in taxable income;v. Chile (-48.8 million euros) due to the reduction of taxable income caused by exchange losses;
vi. Holland (-26.5 million euros) due to a reduction in tax-

3

Materiality analysis

4

Our performance5

Appendixable income in 2021,(44) which, based on the historical
payment mechanism, affected the taxes paid in 2022.
The payment of property taxes increased overall by 48.3
million euros. The most significant increases were recorded (i) in the United States of America (+22.5 million euros)
due to the commissioning of new renewable energy plants,(ii) in Brazil (+18.5 million euros) as a result of certain financial transactions (discharge of foreign financial debts andcapital contribution) subject to capital taxation, and (iii) in
Italy (+3.9 million euros) due to the updating of the “canone
unico patrimoniale” (single property charge) introduced asof 2021.

Tax Collected (€/mil)Profit taxes

Property taxes

Employment taxes

Taxes on products and services

Environmental taxes

2022
1.1

6,074.2

9,201.9
1,102.0

172.9

1,851.62021
1.2

4,274.3

7,383.4
169.2
1,025.1

1,913.72022 ≠ 2021
-0.1 1,800.0
3.6
76.9

-62

1,818.4(43) Some Brazilian entities changed the frequency of income tax settlement from annual to quarterly during the year. Following this change, taxes for the lastquarter of 2022 were paid in January 2023, with a consequent reduction in payments by 2022.
(44) 2021 was characterized by a debt restructuring operation as a result of which securities issued in the past were repurchased early, and new sustainability-linked bonds were issued, in line with the industrial objectives that the Enel Group has set for itself in terms of sustainability and decarbonization. The
restructuring operation generated around 560 million euros in extraordinary costs.

Tax transparency

429

Total Taxes Collected amount to 9,201.9 million euros, up
1,818.4 million euros (+24.6%) as compared to 2021. This
increase is mainly attributable to higher taxes on products
and services.
Indeed, the taxes on products and services increased by
1,800.0 million euros. The largest increases were recorded in:i. Italy (+1,000.0 million euros), where in 2021, as a result of

the first year of adoption of the so-called “VAT Group” –a measure that simplified a number of tax obligations(45)– no payments on account had been made;ii. Spain (+516.2 million euros), Portugal (+103.7 million euros), France (+61.4 million euros) and Germany (+49.9
million euros), due to higher revenues related to the increase in prices and sales volumes as described above.

A representative global and concise index of the Group’s
tax contribution from a cash perspective is:

Another concise indicator of the tax contribution forbusiness income is represented by:

TTC Rate

64.7%

The 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 oftaxes borne in relation to Earnings Before
Taxes. In 2022, the TTC rate of 64.7% washigher than the average for the last three
years (57.5%) mainly due to the increasein taxes borne already mentioned.

In line with OECD best practice,(47) 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 definitive
payment of the balance is made in the year following thatin which they accrued.
The trends of the two values are substantially destined torealign over time. In 2022, the current income taxes on a

Current income
tax rate

68.1%

At Group level, in FY 2022 the Current
Income Tax Rate, determined as theratio of accrued corporate income
taxes (3.0 billion euros) to profit before
income taxes (4.41 billion euros), was
68.1%, higher than the average rate of
the OECD Member States (23.1%).(46)Group level were equal to 3.0 billion euros, whereas the income taxes paid were equal to 1.8 billion euros.
The significant value of current taxes and the difference
between current taxes and taxes paid relating to 2022 ismainly attributable to the higher cost of current taxes recorded in Italy, related to the extraordinary contribution onhigh utility bills and solidarity contributions (approximately
totaling 721 million euros). The upward effect on taxes paid
will be evident in 2023 due to tax payments based on historical data.

(45) https://www.agenziaentrate.gov.it/portale/web/guest/schede/istanze/costituzione-gruppo-iva/scheda-informativa-costituzione-gruppoiva. With this scheme,a single and autonomous taxable entity is established with a single VAT Number valid for all member companies, replacing their individual VAT Numbers. This also
benefits the suppliers of the various companies (e.g., a single VAT Number of reference for the invoices to all Group Companies).
(46) Source OECD Stat, “Table II.1. Statutory corporate income tax rate – Combined corporate income tax rate”.
(47) For the purposes of Country-by-Country Reporting (BEPS Project – Action 13).

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Appendix431

Tax Transparency Report - tables by geographical area
To ensure greater legibility and transparency, below are
given the data of the single countries.
Europe - main countries
UM
Taxes Borne
Profit taxes

FranceGermany

Greece

Italy

8.4

0.3

18.3

1,699.9

€/mil

6.6

-0.1

12.0

930.8

€/mil

6.3

-0.1

12.0

859.9

Property taxes

€/mil

0.1

-

0.3

152.2

Employment Taxes

€/mil

1.7

0.4

1.4

541.3

Taxes on products and services

€/mil

-

-

4.6

2.2

Planet/Environmental Taxes

€/mil

-

-

0.0

73.4

Income tax paid

Taxes Collected

145.8

113.9

3.5

4,229.2

Profit taxes

€/mil

-

-

-

27.2

Property Taxes

€/mil

-

-

-

-

Employment Taxes

€/mil

1.2

0.7

2.0

643.2

Taxes on products and services

€/mil

97.8

87.6

1.5

1,934.9

Planet/Environmental Taxes

€/mil

46.9

25.5

-

1,624.0

Total Tax Contibution (cash accounting)

€/mil

154.2

114.1

21.7

5,929.1

Economic data

UM

FranceGermany

GreeceItaly

Revenues Unrelated€/mil

1,161.3

484.4

111.7

103,258.9

Revenue related cross border

€/mil

72.1

81.8

14.5

4,608.8

Profit (Loss) before income tax

€/mil

35.1

42.6

38.7

810.7

Income tax accrued

€/mil

5.1

3.8

6.1

1,339.8

Tangible assets other than cash and cash equivalents

€/mil

4.4

0.3

595.7

31,700.4

Number of employees

no.

63

23

130

31,643

Accumulated earnings

€/mil

-2.2

-46.2

-159.08,503.2

Corporation Stock

€/mil

4.1

47.7

623.7

53,668.4

TTC Rate

%

22.6%

0.7%

40.6%

103.0%TTC in relation to revenues

%

12.5%

20.2%

17.2%

5.5%

Taxes borne in relation to revenues

%

0.7%

0.1%

14.5%

1.6%

Taxes collected in relation to revenues

%

11.8%

20.1%

2.8%

3.9%

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Appendix

Netherlands

Portugal

Romania

Spain

2022

2021

2022-2021

%

23.4

7.2

29.0

1,330.8

3,117.2

2,631.5

485.7

18%

22.8

6.3

19.9

257.4

1,255.7

1,013.3

242.4

24%

22.8

6.3

19.3

227.7

1,154.3

984.2

170.0

17%

-

0.0

3.8

99.2

255.5

250.8

4.8

2%

0.2

0.9

2.7

133.7

682.4

671.1

11.4

2%

0.5

-

2.4

308.9

318.5

213.3

105.2

49%

-

-

0.1

531.6

605.0

483.1

121.9

25%

22.2

257.8

173.7

1,687.6

6,633.7

4,955.4

1,678.3

34%

-

0.0

-

75.5

102.7

103.4

-0.7

-1%

-

0.1

-

0.2

0.3

0.2

0.1

81%

1.0

1.7

39.4

242.0

931.1

885.9

45.2

5%

15.2

238.5

125.9

1,260.6

3,761.9

2,063.4

1,698.4

82%

6.0

17.6

8.4

109.3

1,837.8

1,902.5

-64.8

-3%

45.6

265.0

202.7

3,018.4

9,751.0

7,587.0

2,164.029%

Netherlands

Portugal

Romania

Spain

2022

2021

2022-2021%

2,744.1

1,582.7

3,140.7

37,331.6

149,815.3

75,051.8

74,763.5100%

1,415.2

493.6

65.8

1,737.3

8,489.1

15,491.3-7,002.2

-45%

-64.2

74.2

-179.8

91.9

849.2

3,679.5-2,830.3

-77%

26.6

18.1

19.2

339.1

1,757.7

1,251.5

506.2

40%

0.6

6.5

2,036.7

22,957.6

57,302.2

55,597.2

1,705.0

3%

20

82

3,265

9,489

44,715

43,2191,496

3%-342.6-5.3

1,109.5

35,656.7

44,714.0

65,981.9-21,267.9-32%

11,550.1

18.8

1,281.8

28,679.1

95,873.8

67,978.6

27,895.3

41%-36.9%

9.6%-17.0%

111.4%

1.1%

12.8%

6.3%

7.7%

0.6%

0.3%

0.9%

3.4%

0.5%

12.4%

5.4%

4.3%

Tax transparency

433

Europe – minor countries(1)UM

Ireland

NorwayPolandSlovakia

TurkeyUnitedKingdom

Russia2022

2021 2022-2021

Revenues
Unrelated

€/mil

10.9

0.4

19.4

-

0.0

22.0

327.1

379.8

612.0

-232.2-38%

Revenuerelated crossborder

€/mil

3.9

0.1

0.2

-

1.0

0.9

21.3

27.5

13.2

14.2

107%

Profit (Loss)before income
tax

€/mil

1.7

-1.7

1.9

-1.3

-2.5

2.0

43.2

43.4

33.8

9.5

28%

Income tax
accrued

€/mil

-

0.0

0.5

-

0.1

-

5.5

6.2

0.1

6.1

4847%

Income tax
paid

€/mil

0.0

-

0.4

-

0.1

-

0.0

0.5

5.5

-5.0

-90%

Tangible assets
other than€/milcash and cash
equivalents

0.5

0.0

0.4

0.0

0.0

0.1

2.7

3.7

852.2

-848.5-100%

Number of
employees

no.

57

4

22

-

1

32

5

121

1,566

-1,445-92%

Accumulated
earnings

€/mil

-0.6

-0.4

-1.6

-

-7.5

-7.1

5.1

-12.1

346.8

-358.9-103%

Corporation
Stock

€/mil

30.0

5.1

5.8

-

2.9

20.9

3.5

68.1

1,020.1-952.0-93%

Economic data

(1)%

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 and Sweden.

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Appendix

North America - main countries
Economic data

UM

USA &
CanadaMexico2022

2021

2022-2021%

Taxes Borne

€/mil

78.0

6.4

84.4

57.5

26.9

47%

€/mil

1.6

3.9

5.5

7.8

-2.3

-30%

€/mil

1.6

3.9

5.5

7.8

-2.3

-30%

Property taxes

€/mil

60.0

-

60.0

37.6

22.5

60%

Employment Taxes

€/mil

15.7

2.5

18.2

10.5

7.7

73%

Profit taxes
Income tax paid

Taxes on products and services

€/mil

0.7

-

0.7

1.6

-0.9

-58%

Planet/Environmental Taxes

€/mil

-

0.0

0.0

0.0

-0.0

-55%

Taxes Collected

€/mil

60.9

17.3

78.2

65.8

12.4

19%

Profit taxes

€/mil

-

0.0

0.0

0.2

-0.2

-97%

Property Taxes

€/mil

-

0.8

0.8

1.0

-0.2

-20%

Employment Taxes

€/mil

60.3

4.5

64.9

49.2

15.7

32%

Taxes on products and services

€/mil

0.6

12.0

12.5

15.3

-2.8

-19%

Planet/Environmental Taxes

€/mil

-

-

-

-

-

0%

Total Tax Contibution (cash accounting)

€/mil

138.8

23.7

162.6

123.3

39.3

32%

UM

USA &
CanadaMexico2022

2021

2022-2021%

Revenues Unrelated€/mil

2,130.7351.2

2,481.9

1,752.0

729.9

42%

Revenue related cross border

€/mil

51.0

14.4

65.4

23.9

41.5

174%

Economic data

Profit (Loss) before income tax

€/mil

239.9

-590.2-350.3107.6-457.9-425%

Income tax accrued

€/mil

48.3

8.1

56.4

-2.8

59.2

2132%

Tangible assets other than cash and cash equivalents€/mil

12,876.9

841.2

13,718.1

11,410.2

2,307.9

20%

no.

1,775

325

2,100

1,914

186

10%

Number of employees
Accumulated earnings€/mil

1,104.5-32.8

1,071.7

913.7

158.0

17%

Corporation Stock€/mil

23,185.6

1,702.2

24,887.8

17,383.3

7,504.5

43%

TTC Rate

%

24.6%

-1.1%

TTC in relation to revenues

%

6.4%

6.5%

Taxes borne in relation to revenues

%

3.6%

1.8%

Taxes collected in relation to revenues

%

2.8%

4.7%

Tax transparency

435

Latin America - main countries
UM

Argentina

BrazilChile

Colombia

Costa
Rica

GuatemalaPanama

Peru

2022

2021

20222021

Taxes Borne

€/mil

53.6

812.6

131.5

400.9

1.4

6.3

32.1

136.4

1,574.8

1,392.7

182.1

13%

Profit taxes

€/mil

22.1

135.5

71.8

285.5

0.6

5.8

29.5

113.9

664.8

753.9

-89.0

-12%

Income tax
paid

€/mil

19.3

135.5

71.8

262.8

-

5.7

29.5

113.9

638.6

730.9

-92.3

-13%

Property taxes

€/mil

1.3

30.2

3.6

1.6

0.2

0.2

0.4

2.6

40.1

19.1

21.0

110%

Employment
Taxes

€/mil

18.7

72.1

-

13.8

0.6

0.3

0.5

2.1

108.1

89.8

18.3

20%

Taxes onproducts andservices

€/mil

7.9

574.6

17.9

77.2

-

-

0.2

15.6

693.4

479.3

214.2

45%

Planet/Environmental
Taxes

€/mil

3.6

0.2

38.1

22.9

0.0

0.0

1.5

2.1

68.3

50.6

17.7

35%

%

Taxes Collected

€/mil

166.8

2,071.8

61.3

70.1

2.9

5.6

5.5

96.2

2,480.3

2,356.2

124.1

5%

Profit taxes

€/mil

10.6

18.5

9.8

20.6

0.0

0.9

4.7

1.6

66.8

64.3

2.5

4%

Property Taxes

€/mil

-

-

-

-

-

-

-

-

-

-

-

0%

Employment
Taxes

€/mil

18.7

42.6

19.8

10.9

0.2

0.1

0.4

8.1

100.8

85.5

15.3

18%

Taxes onproducts andservices

€/mil

137.4

2,010.8

31.7

24.7

2.7

4.6

0.4

86.5

2,298.8

2,195.3

103.5

4.7%

Planet/Environmental
Taxes

€/mil

-

-

-

13.9

-

-

-

-

13.9

11.1

2.8

25%

Total Tax
Contibution(cash
accounting)

€/mil

220.4

2,884.5

192.8

471.0

4.3

12.0

37.6

232.6

4,055.1

3,748.9306.2

8%

Economic data

UM

Argentina

BrazilChile

Colombia

Costa
Rica

GuatemalaPanama

Peru

2022

2021

20222021%

Revenues
Unrelated€/mil

3,216.0

10,435.1

6,897.2

2,837.0

21.2

95.8

179.7

1,516.6 25,198.6 18,971.6

6,226.9

33%

Revenue related
cross border

€/mil

27.3

295.7

476.5

7.9

1.0

2.5

0.3

0.1

811.4

113.8

697.6

613%

Profit (Loss)before income
tax

€/mil

261.1

241.7

1,935.2

932.3

1.9

44.2

79.6

448.8

3,944.7

1,341.8

2,602.9

194%

Income tax
accrued

€/mil

44.2

225.8

374.2

371.0

0.4

5.6

23.2

138.4

1,182.9

595.6

587.4

99%

Tangible assets
other thancash and cash
equivalents€/mil

2,402.1

4,198.6

7,525.3

3,558.7

29.4

359.3

416.9

2,803.7 21,294.1 18,602.9

2,691.2

14%

Number of
employees

no.

4,032

7,506

2,197

2,327

35

92

96

1,075

17,36018,762-1,402-7%

Accumulated
earnings

€/mil

765.4

295.8

1,305.0

874.9

-85.9

175.1

128.8

-340.2

3,118.9

6,788.5-3,669.6-54%

Corporation
Stock

€/mil

1,097.7

14,772.4

22,150.2

1,932.2

275.9

264.2

437.7

2,896.8

43,827.0 36,381.3

7,445.7

20%

TTC Rate

%

18.2%

88.4%

6.6%

37.5%

42.1%

14.2%

39.1%

28.9%

TTC in relation torevenues

%

6.8%

26.9%

2.6%

16.6%

19.3%

12.2%

20.9%

15.3%

Taxes borne
in relation torevenues

%

1.7%

7.6%

1.8%

14.1%

6.2%

6.4%

17.8%

9.0%

Taxes collected
in relation torevenues

%

5.1%

19.3%

0.8%

2.5%

13.2%

5.7%

3.0%

6.3%

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Appendix

Latin America – minor countries(1)Economic data

UM

Uruguay

2022

2021

2021-2020%

Revenues Unrelated

€/mil

0.3

0.3

1.6

-1.2

-80%

Revenue related cross border

€/mil

-

-

0.0

-0.0

0%

Profit (Loss) before income tax

€/mil

-0.2

-0.2

1.2

-1.4

-119%

Income tax accrued

€/mil

-

-

0.1

-0.1

Income tax paid

€/mil

0.2

0.2

0.0

0.1

0%

Tangible assets other than cash and cash
equivalents

€/mil

0.0

0.0

0.0

-0.0

0%

Number of employees

no.

1

1

1

-

0%

Accumulated earnings

€/mil

0.4

0.4

-0.8

1.2

157%

Corporation Stock

€/mil

-

-

-

-

-

(1)

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.

Tax transparency437

Africa and Oceania - main countries
UM

South Africa

2022

2021

2022-2021

Taxes Borne

€/mil

0.1

0.1

-

0.1

Profit taxes

€/mil

0.1

0.1

-

0.1

€/mil

0.1

0.1

-

0.1

Property taxes

€/mil

-

-

-

-

0%

Employment Taxes

€/mil

-

-

-

-

0%

Taxes on products and services

€/mil

-

-

-

-

0%

Planet/Environmental Taxes

€/mil

-

-

-

-

0%

Taxes Collected

€/mil

4.2

4.2

3.8

0.4

10%

Profit taxes

€/mil

0.4

0.4

0.2

0.2

132%

Property Taxes

€/mil

-

-

-

-

0%

Employment Taxes

€/mil

3.9

3.9

3.7

0.2

5%

Taxes on products and services

€/mil

-

-

-

-

0%

Planet/Environmental Taxes

€/mil

-

-

-

-

0%

Total Tax Contibution (cash accounting)

€/mil

4.4

4.4

3.8

0.5

14%

UM

South Africa

2022

2021

2022-2021%

Revenues Unrelated

€/mil

120.5

120.5

133.3

-12.9

-10%

Revenue related cross border

€/mil

0.2

0.2

7.2

-7.0

-97%

Profit (Loss) before income tax

€/mil

-16.9

-16.9

-1.8

-15.1

-835%

Income tax accrued

€/mil

-

-

-

-

0%

Tangible assets other than cash and cash
equivalents

€/mil

384.3

384.3

1,271.6-887.3-70%

Income tax paid

Economic data%

Number of employees

no.

182

182

178

4

2%

Accumulated earnings€/mil-166.3-166.3-223.757.4

26%

Corporation Stock689.7

1,151.5-461.9

-40%

€/mil

689.7

TTC Rate%-0.7%

TTC in relation to revenues

%

3.6%

Taxes borne in relation to revenues

%

0.1%

Taxes collected in relation to revenues

%

3.5%

438

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Africa and Oceania – minor countries(1)Economic data
Revenues Unrelated

UM Australia
€/mil

45.2

New
Kenya Morocco Zealand
0.0

4.4

3.9

Zambia2022

2021

2022-2021

%

7.4

60.8

86.0

-25.2

-29%

Revenue related cross border

€/mil

1.6

-

-

0.3

-

1.9

2.7

-0.8

-29%

Profit (Loss) before income tax

€/mil

-25.4

-0.5

-2.4

0.2

0.4

-27.7

-18.4

-9.3

-50%

Income tax accrued

€/mil

0.0

-

0.0

0.1

-

0.1

2.1

-2.0

-94%

Income tax paid

€/mil

0.0

-

-

0.1

-

0.1

-0.4

0.5

123%

Tangible assets other than cash
and cash equivalents

€/mil

334.3

0.0

0.9

0.1

26.7

362.0

316.8

45.1

14%

Number of employees

no.

95

2

39

6

6

148

139

9

6%

Accumulated earnings

€/mil

-66.9

-3.9

1.5

-0.4

-7.1

-76.8

-55.9

-20.9

-37%

Corporation Stock

€/mil

496.6

2.7

59.8

2.0

9.5

570.6

434.8

135.8

31%

(1)

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

439

Asia - main countries
UM

India

2022

2021

2022-2021%

Taxes Borne

€/mil

1.4

1.4

0.4

1.0

260%

Profit taxes

€/mil

1.4

1.4

0.4

1.0

260%

€/mil

1.4

1.4

0.4

1.0

246%

Property taxes

€/mil

-

-

-

-

0%

Employment Taxes

€/mil

-

-

-

-

0%

Taxes on products and services

€/mil

-

-

-

-

0%

Planet/Environmental Taxes

€/mil

-

-

-

-

0%

Taxes Collected

€/mil

5.4

5.4

2.2

3.3

149%

Profit taxes

€/mil

3.0

3.0

1.1

1.9

169%

Property Taxes

€/mil

-

-

-

-

0%

Employment Taxes

€/mil

1.4

1.4

0.9

0.5

52%

Taxes on products and services

€/mil

1.1

1.1

0.2

0.9

0%

Planet/Environmental Taxes

€/mil

-

-

-

-

0%

Total Tax Contibution (cash accounting)

€/mil

6.9

6.9

2.6

4.3

166%

UM

India

2022

2021

2022-2021%

Revenues Unrelated

€/mil

42.2

42.2

14.4

27.8

193%

Revenue related cross border

€/mil

9.0

9.0

7.5

1.5

20%

Profit (Loss) before income tax

€/mil

-20.7

-20.7

-5.7

-15.1

-267%

Income tax accrued

€/mil

-

-

0.1

-0.1

Tangible assets other than cash and cash
equivalents

€/mil

225.6

225.6

320.3

-94.7

-30%

Income tax paid

Economic data

Number of employees

no.

397

397

418

-21

-5%

Accumulated earnings

€/mil

-23.3

-23.3

-22.2

-1.1

5%

Corporation Stock

210.9

189.3

21.6

11%

€/mil

210.9

TTC Rate%-7.0%

TTC in relation to revenues

%

13.5%

Taxes borne in relation to revenues

%

2.8%

Taxes collected in relation to revenues

%

10.6%

440

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Asia – minor countries(1)Economic data

China Indonesia

IsraelJapan

Singapore

South
Korea

Taiwan2022

2021 2022-2021

Revenues Unrelated

€/mil

0.0

-0.0

1.2

17.6

0.4

30.7

1.3

51.2

39.8

11.4

29%

Revenue related
cross border

€/mil

0.4

-

-

0.2

-

0.1

0.0

0.7

0.6

0.1

20%

Profit (Loss) before
income tax

€/mil

-3.5

-0.1

-0.0

0.1

-2.3

-1.8

-1.4

-9.1

-10.7

1.7

16%

Income tax accrued

€/mil

-

-

0.0

-0.0

0.0

0.0

-

-0.0

0.1

-0.1 -117%

Income tax paid

€/mil

-

-

0.0

0.0

-

0.0

-

0.0

0.0

-0.0

0%

Tangible assets otherthan cash and cash
equivalents

€/mil

0.2

0.0

0.0

0.3

0.2

8.1

1.1

10.0

8.4

1.6

19%

Number of
employees

no.

12

-

1

21

2

43

10

89

81

8

10%

Accumulated
earnings

€/mil

-3.7

-3.0

-

1.4

-7.6

-24.0

-1.7

-38.7

-33.2

-5.5

-16%

Corporation Stock

€/mil

3.2

3.7

-

0.2

6.4

34.6

4.8

52.9

59.9

-7.0

-12%

(1)

UM

%

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 and Vietnam.

Tax transparency

441

Reconciliations with the 2022 Integrated Annual Report
In the following paragraphs, a reconciliation of data represented in the Tax Transparency Report is made withrespect to the contents of the Integrated Annual Report2022.

This reconciliation is necessary given the different methods 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.

€/mil
Items subject to reconciliation

Tax Transparency Report

Consolidated Financial
Statements

Difference to bereconciled

170,151

140,518-37,633

Third party revenues

4,411

8,741

4,330

Tangible assets

Earnings before taxes

93,30088,615-4,685

Taxes paid

1,800

1,934

134

Third party revenues
The deviations between the data given in the Tax Transparency Report and the data in the Integrated Annual Report 2022
are:i. Derivatives (-25,827 million euros): for the purposes of theIntegrated Annual Report, derivatives are the responsibilityof the companies that do not operate in the market (directbalance sheet accounting management) while in the individual financial statements of the countries that operate on
the market they are recognized in the income statement;
ii. Financial income (-8,287 million euros): for the purposesof the Integrated Annual Report the financial data for financial income is entered in the financial statements on a specific line of the Profit and Loss statement that is different
than the revenue item, which differs from what is requested by the OECD rules(48) applied for the purposes of the Tax
Transparency Report;iii. Revenue from discontinued operations(49) (-3,998 million
euros): for the purposes of the Integrated Annual Report,
the revenues related to Group components (branches,companies or geographical areas) that have been discontinued or classified as held for sale are stated in a single net

amount on a separate line of the Profit and Loss statement,
whereas for the purposes of the Tax Transparency Reportthese revenues are represented analytically among the results of the companies within the scope;
iv. Fair value of companies consolidated using the equity
method (436 million euros): for purposes of the Integrated
Annual Report, revenues related to impairment operations
on companies consolidated using the equity method areincluded in the year results. For the purposes of the Tax
Transparency Report, the results related to the companies
consolidated using the equity method are excluded asthese entities are not relevant;v. Dividends from companies consolidated using the equity
method (-262 million euros): for purposes of the Integrated Annual Report, dividends received from consolidated
companies(50) are eliminated. These revenues are considered in the Tax Transparency Report;vi. Other consolidation adjustments made on the basis of theapplication of international accounting principles (305 million euros(51)).

€/mil
Third Party Revenues - Tax Transparency Report

178,151

Derivatives-25,827

Financial income-8,287

Revenues from discontinued operations-3,998Fair value of companies consolidated using the equity method

436

Dividends from companies consolidated using the equity method-262

Other consolidation adjustments
Revenues - Consolidated Financial Statements

305
140,518(48) For the purposes of Country-by-Country Reporting (BEPS Project – Action 13).
(49) For more details regarding the definition of discontinued operations, refer to the Integrated Annual Report.
(50) Using the full, proportional and equity method.
(51) 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 and (iv) adjustments to contracts with physicaldelivery stated at fair value.

442

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Earnings before taxes
The deviations between the data given in the Tax Transparency Report and the data in the Integrated Annual Reportare:i. Impairment on shareholdings (3,326 million euros): theaccounting records for equity investments consolidated with the full method does not have an impact on theProfit and Loss statement. These accounting records
however involve a reduction in profit before taxes forthe purposes of the Tax Transparency Report;
ii. Derivative management (1,467 million euros): for the
purpose of the Integrated Annual Report, the accounting records related to the reversal of the Cash Flow
Hedge reserve for a possibly different qualification of
the derivatives between the stand alone view of theCompany and that of the Group do not have any impact
on the Profit and Loss statement. These accounting records however involve a reduction in profit before taxes
for the purposes of the Tax Transparency Report;iii. Company dividends measured at equity (-262 million
euros): for the purposes of the Integrated Annual Report, dividends received from consolidated companies
are eliminated. These revenues are considered in the
Tax Transparency Report;
iv. Results from discontinued operations (-154 million euros): for the purposes of the Integrated Annual Report,
the results related to Group components (branches,companies or geographical areas) that have been discontinued or classified as held for sale are stated as asingle net amount on a separate line of the Profit andLoss statement, whereas for the purposes of the Tax
Transparency Report these revenues are represented
analytically among those of the companies within thescope;
v. Other consolidation adjustments made on the basis of
the application of international accounting principles(-47 million euros(52)).

€/mil
Earnings before taxes - Tax Transparency Report

4,411

Impairment losses on shareholdings

3,326

Derivative management

1,467

Dividends from companies accounted for using the equity method-262

Results from discontinued operations-154

Other consolidation adjustments-47

Earnings before taxes - Integrated Annual Report

8,741

Tangible assets
The deviations between the data given in the Tax Transparency Report and the data in the Integrated Annual Report

are due to Adjustments from consolidation (-4,685 million
euros).(53)€/milTangible Assets - Tax Transparency Report

93,300Adjustments from consolidation-4,685

Consolidated Tangible Assets

88,615(52) 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 and (iii) changes during the year in the scope of consolidation, (iv) provision (or release) of funds in the Profit and Loss statement, (v)result of companies accounted for using the equity method, and (vi) intercompany capital losses (capital gains).
(53) 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 assets and(v) elimination of effects related to discontinued operations and assets qualified as Available for Sale.

Tax transparency443

Income taxes paid
The data of income taxes paid for the purposes of the Integrated Annual Financial Report is determined through themethod 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 information col-lected from the individual companies in the different tax
jurisdictions, consistent with the rules laid down by theOECD 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.(54)€/milTaxes paid - Tax Transparency Report
Differences due to the use of the indirect method for the purposes of the statement of cash flows
Taxes paid - Integrated Annual Report

1,800
134
1,934

Tax Rate
With reference to the reconciliation between the theoretical and actual tax rate, reference should be made to theanalysis contained in the Integrated Annual Report 2022.

(54) By way of example only, the differences in 2022 can be related to: (i) inclusion in the data of the Integrated Annual Report of the taxes related to dividends(excluded from the data in the Tax Transparency Report) and (ii) changes during the year in the scope of consolidation.

444

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performanceTax transparency

5

Appendix

445

TOPIC VIEW

5.

446

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Appendix
5.1 Methodological note

5.2 Sustainability Statement: performanceindicators

5.3 Content Index
GRI
SASB
TCFD
EUROPEAN COMMISSION GUIDELINES ONREPORTING CLIMATE-RELATED INFORMATIONWEFSUSTAINABLE FINANCE DISCLOSUREREGULATION (PAI)HUMAN RIGHTS

5.4 Our position on and commitment to theEuropean Taxonomy

447

Methodological note
2-1

2-2

2-3

2-4

2-5

2-29

3-1

Since 2003 Enel has been publishing a Sustainability Report each year, at the same time as the Group Consolidated 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 the Councilof October 22, 2014, amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information bycertain large companies and groups”, Enel has been publishing a Consolidated Non-Financial Statement (NFS) since 2017.
The Sustainability Report will constitute Enel’s NFS with effectfrom the 2019 financial year. Accordingly, from that financial
year on, the NFS is no longer published as a separate document. This Report of the Enel Group at December 31, 2022
was therefore drawn up in compliance with Italian Legislative
Decree 254/16 and the 2019 Budget Act and article 5 of the
CONSOB Regulations adopted with Resolution no. 20267 of
18 January 2018 and it is a separate document with respect to
the Report on Operations. The document is published in the“Investors” section of the Enel website (www.enel.com).
The Sustainability Report 2022 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,providing a complete overview of the most significant impacts on the economy, the environment and on the people

Information and in-depth analyses
on the issues and indicatorspresented in this Report canbe requested from:448

Sustainability Report 2022

3-2of the Enel Group, including on human rights and how they
manage these impacts.
With respect to previous years, the structure of this document has been redefined, providing an entire section on
the materiality analysis in a specific chapter, “Materiality analysis process and results for 2022” and attaching a
specific table linking the topics and information requiredby the European Regulation that regulates disclosures in
the area of sustainable finance (SFDR, Sustainable Finance
Disclosure Regulation) with content provided in this document, indicating the specific chapter of reference in the
document. Furthermore, a separate section was preparedfor reporting related to the just transition, in line with themain sustainability trains (see chapter “Our commitment toa just transition: leaving no one behind”).
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 andcharacteristics, according to the process described below(see the chapter “Materiality analysis process and resultsfor 2022”).
The following table shows the areas required by Italian Legislative Decree 254/16, specifying the document chapter
in which they are discussed.

Enel SpA
Innovability® Function (Innovation and Sustainability)
Sustainability Planning and Performance Managementand Human Rights
Viale Regina Margherita, 137
00198 Rome - Italy
Tel +39 06 83051
E-mail sustainability@enel.com
Web https://www.enel.com/it/investors1

1

Letter to stakeholders

Topic of the Report/
Italian Legislative
Decree 254/16

Environment

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Topic of the materiality Reportanalysischapter

Risks

Policies andmanagement models

Activities andresults

Decarbonization of theenergy mix

Zero emissions
ambition“Zero emissions
ambition” chapter“Zero emissions
ambition” chapter“Zero emissions
ambition” chapter

Conservation of
ecosystems andenvironmental
management

Conservation of natural “Sound governance”
capitalchapterEngaging global andlocal communities

Engaging communities“Sound governance”
chapter“Engagingcommunities” chapter“Engagingcommunities” chapter

Sustainable supply
chain

Sustainable supply
chain“Sound governance”
chapter“Sustainable supply
chain” chapter“Sustainable supply
chain” chapter

People management,
development andmotivation

Empowering Enelpeople“Sound governance”
chapter“Empowering Enelpeople” chapter“Empowering Enelpeople” chapter

Occupational healthand safety

Occupational healthand safety“Sound governance”
chapter“Occupational healthand safety” chapter“Occupational healthand safety” chapter“Sound governance”
chapter“Managing humanrights” and “Sound
governance” chapters“Managing humanrights” and “Sound
governance” chapters“Sound governance”
chapter“Sound governance”
chapter“Sound governance”
chapter“Conservation of“Conservation ofnatural capital” chapter natural capital” chapter

SocialEmployment andlabor-relatedSound governance andfair corporate conduct
People management,
development andmotivation

Human rights

Engaging global andlocal communities
Conservation of
the ecosystems
and environmental
management

Managing
human rights
Sound governance

Sustainable supply
chain
Active and passive
fight against
corruption

Sound governance andSound governancefair corporate conduct

Methodological note449How this document
has been constructed
The Sustainability Report 2022 was prepared in compliance with the reporting standards “Consolidated set of
GRI Standards” defined by GRI in 2021 with the inclusionof the GRI Universal Standard 2021, and also considering
the Electric Utilities Disclosure supplement dedicated tothe sector 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 thisdocument. This information, in compliance with standard
GRI 1: Fundamental Principles 2021, the disclosures inquestion were subjected to the same technical rigor required by the reporting standard adopted. The reporting
standards adopted, as described above, comply with thedisclosure obligations pursuant to Italian Legislative Decree 254/16 art. 1 letter “f” and art. 3, par. 3, which thedirectors decided to adopt organically in order to fully
represent the social and environmental 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.
Furthermore, the Appendix to the Sustainability Reportcontains specific tables of reconciliation with indicators
proposed by the WEF white paper “Toward Common
Metrics and Consistent Reporting of Sustainable Value
Creation” and 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) as well as a specific table linking
the topics and information related to the protection ofhuman rights and the Group’s Human Rights Policy. Starting from 2022, a specific table is attached that links the450

Sustainability Report 2022

topics and information required by the European Regulation that regulates disclosures in the area of sustainablefinance (SFDR). The Sustainability Report 2022 also responds to the qualitative indications of the Taskforce on
Climate-related Financial Disclosures (TCFD) and the UN
Guiding Principles Reporting Framework; the alignment ispointed out in the TCFD Content Index, which includes
the section of the financial statements that cover thequalitative disclosure requests of the TCFD and European
Community Climate Guidelines.
The Sustainability Report is part of the Enel corporate reporting system, and the information it provides is moredetailed than and supplementary to the annexed documents cross referenced in the Report. The non-financial
information to be presented within the various corporate
reporting system documents is selected based on themateriality analysis results and considering the approachset down in “Reporting on enterprise value”, released in
December 2020 by the main reference International organizations (CDP, CDSB, GRI and SASB). In particular, thecontent 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 “Our sustainable progress” and “Our performance”);
these chapters contain descriptions also of the goals andassociated progress referred to the Sustainable Development Goals (SDG), in order to provide full disclosure of all
relevant information in the reporting period, together withreliable estimates for the future. The quality of information
reported is assured by proceeding in compliance with theprinciples of accuracy, balance, clarity, completeness, sustainability context, timeliness, and verifiability.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Sustainability Report

This 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

Report and financial
statements of Enel SpA

This is prepared in conformity with Article 9, paragraph 3, ofLegislative Decree 38 of February 28, 2005

Integrated Annual Report
2022

Report on Corporate Governanceand the Ownership StructureThis describes the Enel corporate governance system
pursuant to Article 123-bis of the Consolidated Law on
Financial Intermediation and Article 144-decies of the
CONSOB Issuers Regulation

Report on Remuneration Policy

This 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 took into account the draft of the ESRS 1 standard– General Requirements prepared by EFRAG (European
Financial Reporting Advisory Group), as well as the Value
Reporting Foundation – 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 and developed by GRI, UN Global Compact
and the World Business Council for Sustainable Development (WBCSD) to help companies align their strategies
with the SDGs and measure and manage their contribution
to the goals.

Methodological note451

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 materiality topics made it possible
to identify the material topics for the Company. The tablecontains the codes for the material topics identified with
the GRI Standards or the “Aspects” of the GRI supplement

dedicated to the electric utilities sector (“Electric Utilities
Sector Disclosures”) of reference, along with an indicationof the context internal and external to the organization andthe limitations on the scope, and is provided in the chapter“Materiality analysis process and results for 2022”.

The reporting process
The structure of the Sustainability Report 2022 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 the
topics – divided in turn into dedicated sub-topics – influenced the level of detail with which to treat each subject
and report the associated GRI indicators (GRI Standards
and Electric Utilities Sector Disclosure) and also the choiceof the most appropriate tools to represent them (2022 Integrated Annual Report and appended reports), to whichreference was made for the treatment or detailed investigation of more specific topics, respectively, of economic
performance and governance. The materiality analysis also

formed the basis for definition of Enel’s sustainability goals
for the 2023-2025 period, as illustrated by the Sustainability Plan (see chapter “We empower sustainable progress”).
The GRI Context Index, included in the Appendix, contains references to the 2022 Sustainability Report and theGroup’s other reporting instruments. Please also consult
the website www.enel.com for further information, for example regarding innovation projects or the activities ofEnel’s foundations and the 2022 Informe de Sostenibilidad
by Endesa and Enel Américas for additional details concerning initiatives dedicated to customers and local communities in Spain and South 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 issues,
and all Group Business Lines, Functions and companies
for issues 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 Planning and Performance Managementand Human Rights unit, which forms part of the Innovability® Function, is responsible for consolidating informationand coordinating the entire 2022 Sustainability Report
drafting process.
On March 28, 2023, the Report was submitted for analysis
and evaluation by the Corporate Governance and Sustainability Committee and on April 5 to the Enel Control and
Risk Committee. It was approved by the Board of Directors on April 6. The document will then be presented to theGeneral Shareholders’ Meeting together with the Group’s

452

Sustainability Report 2022

Consolidated 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 Consolidated 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 and diligence, confidentiality and professional conduct. As of the2021 financial year, the audit approach has been extended
to include the comprehensive scrutiny (reasonable assurance) of a set relevant indicators, equal to 36 KPI for 2022
(25 KPI in 2021). This activity is aimed at obtaining greater
security regarding the selected indicators as compared toindicators and other information subject to limited scrutiny and makes it possible to guarantee to the various
stakeholders of the Sustainability Report greater reliability

1Letter to stakeholders

2

We empower sustainable progressof the topics and information it contains. The conclusionsof the limited reasonable assurance activity are set out inthe Mixed Audit Report on the Enel Group non-financial
statement and on the selection of 36 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 36 indicators subjected to reasonable assurance areindicated below.
Occupational safety
1. No of fatalities – Enel
2. No of fatalities – Contractors
3. Fatality frequency rate – Enel
4. Fatality frequency rate – contractors
5. Lost Time Injury Frequency Rate with absence of work
greater than 3 days – Enel
6. Lost Time Injury Frequency Rate with absence of work
greater than 3 days – Contractor
7. Injury frequency index with absence from work – Enel
8. Injury frequency index with absence from work –Contractors
9. High Potential injury frequency rate – Enel
10. High Potential injury frequency rate – Contractors
11. Frequency rate of total injuries – Enel
12. Frequency rate of total injuries – Contractors
13. “Life changing” injury frequency rate – Enel
14. “Life changing” injury frequency rate – Contractors
Grid resiliency
15. SAIDI – System Average Interruption Duration Index
16. SAIFI – System Average Interruption Frequency Index
Climate17. Direct emissions Scope 1
18. Specific CO2eq emissions – Scope 1
19. Scope 2 emissions – market based
20. Scope 2 emissions – location based
21. Scope 3 emissions
22. Intensity of GHG Scope 1 emissions related to power
generation

3

Materiality analysis

4

Our performance5

Appendix

23. Intensity of GHG Scope 1 and 3 emissions related toIntegrated Power
24. Absolute Scope 3 GHG emissions relating to gas retail
25. Climate governance
26. Climate strategy
27. Climate Risk Management
Gender diversity
28. Percentage of female managers and middle managers
29. Percentage of women in the managerial succession
and top managerial plans
30. No. of total employees who are women
Supply chain
31. Qualified suppliers evaluated in relation to social
aspects
32. Qualified suppliers evaluated in relation toenvironmental aspects
Tax transparency
33. Current Income Tax Rate
Other
34. Confirmed violations of the Code of Ethics by type,stakeholder, country
35. Commercial complaints on the Group level
36. Number of cyber security incidents managed by CERT,
classified with a severity level between 2, 3 and 4
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 to thisSustainability Report. The Statement of the proportion ofactivities considered eco-sustainable (Art. 8, Reg. EU 852).
The GHG Inventory Statements were audited by DNV GL,
with a reasonable level of certainty for Scope 1, Scope 2
and Scope 3 emissions, restricted to natural gas sales activities, and with a limited level of certainty for the other
Scope 3 emissions included in the scope of application of
the inventory. The audit was conducted according to ISO
4064-3 for compliance of greenhouse gas (GHG) inventories with the WBCSD/WRI Corporate Accounting andReporting Standard (GHG Protocol).

Methodological note453

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, 2022, 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 CNVIIAIE), to which the two Spanish nuclear plants of Ascó andVandellós are attributed. The company, considered to bea joint operation in line with the provisions of accounting standard IFRS 11,(1) is included in the Group’s financial
scope of consolidation under the proportional method,and is included in this report using the same method to ensure the impacts are adequately represented, given that it
is a significant Group entity. The sole exception to the lineby-line consolidation scope are the companies acquired in
2022, 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 2022 were:• completion of the acquisition of 527 MW of hydroelectric plants by Enel Produzione SpA;• acquisition by Enel X of 50% of Mooney Group SpA, andthe subsequent sale to it of all the activities related to
the lending services of Enel X in Italy, marketed with theEnel X Pay brand (Enel X Financial Services, CityPoste
Payment, PayTipper and Junia Insurance);• sale of the entire investment held in PJ C Enel Russia
completed on October 12, 2022, which involved the saleof all the electricity generation assets in Russia, which
include approximately 5.6 GW of conventional capacity
and approximately 300 MW of wind capacity in various
stages of development;• completion of the sale of the electricity transmission
business in Chile, through the sale of the company Enel
Transmisión Chile SA;• finalization of the sale of 50% of Gridspertise to CVC;
• completion of the sale of the electricity distributing(1)

company in the State of Goiás in Brazil.
For more detailed information on the changes, refer to the2022 Consolidated Annual Report in the sections “Mainchanges in the scope of consolidation” and “Significant
events in 2022”.
If the associated companies (measured at equity in theConsolidated Annual Report) and other entities over which
Enel exercises significant influence (including joint ventures) produce substantial impacts, for the purpose of thecontent of the present document, they are included in thedata calculation in proportion to Enel’s holding, and specific disclosure is referenced in the text. We invite you to referto the 2022 Consolidated Annual Report for details of thecompanies included the scope of consolidation.
In this Statement, 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 2021 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 2021, 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 alreadypublished data, calculation methods, assumptions or significant limitations of indicators.
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. Data determined through the useof estimates and related calculation method have been expressly indicated. In the comparison of the data over time,it should be noted that differences between 2022 and
2021, in absolute and percent terms, have been calculated
considering decimal places in some cases not visible in theprinted document. In the tables containing quantitative
data, percent changes in excess of |100%| are indicated 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.

454

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Performance indicators
Key sustainability performance indicators are presented
from page 457 to page 499 and form an integral part ofthis Sustainability Report. In order to facilitate a reading of
the performance indicators in conjunction with the quali-

tative information presented in the document, the quantitative indicators will be reported in a separate booklet
in the printed copy. This booklet will be contained in the
pocket on the inside back cover.

Units of measure• sec / seconds• t / tons
• TBq per unit / terabecquerels per unit
• TOE / tons of oil equivalent• TJ / terajoules• TWh / Terawatt hours• .000 / thousands• .000 d / thousands of days
• .000 h / thousands of hours• .000 t / thousands of tons
• % / percentage• years / years• cent euros / euro cents• g/kWh / grams per kilowatt hour
• g/kWh / grams per equivalent kilowatt hour
• GBq per unit / gigabecquerels per unit
• gCO /kWh CO grams per kilowatt hour
• gCO /kWh CO equivalent grams per kilowatt hour
• dd / days
• GW / gigawatts• GWh / gigawatt hours• h / hours• h/per cap / hours per capita• r / rate
• kg / kilograms• km / kilometers• kWh / kilowatt hours• kWh / equivalent kilowatt hours• kWh/t / kilowatt hours per ton• kWp / peak kilowatts• l/kWh / liters per kilowatt hour
• l/kWh / liters per equivalent kilowatt hour• billions of m / billions of cubic meters• MJ/kWh / megajoules per equivalent kilowatt hour
• ML / megaliters• mil million• mil A4 / millions of equivalent A4 sheets• mil euros / millions of euros• Mh / mil h / millions of hours• Ml / mil l / millions of liters• Mm /mil m / millions of cubic meters• Mt / mil t / millions of tons
• M tCO / mil tCO / CO equivalent millions of tons
• M t / mil t / millions of equivalent tons
• min / minutes• Mtoe / millions of tons of oil equivalent• MW / megawatts• MWh / megawatt hours• no. / number
(3)

eq

2

2

2eq

2

(3)

eq

(3)

eq

3

(3)

eq

eq

3

3

2eq

eq

2eq

2

eq

Acronyms• HV High Voltage• EIB European Investment Bank
• BOD Biochemical Oxygen Demand• LV Low Voltage• CCGT Combined Cycle Gas Turbine• BoD Board of Directors• CERT Cyber Emergency Readiness Team• CSV Creating Shared Value• COD Chemical Oxygen Demand• CSR Corporate Social Responsibility• EBT Earnings Before Tax• EBIT Earnings Before Interest and Tax• EBITDA Earnings Before Interest, Tax, Depreciation andAmortization• ESG Environmental Social & Governance• EGP Enel Green Power• EPS Earnings per Share• RT Remote Training• 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• S&P Standard & Poor’s• SRI Socially Responsible Investor• TSR Total Shareholder Return• SCIGR Internal Control and Risk Management System• SDG Sustainable Development Goal
• TCFD Task Force on Climate-related Financial Disclosure• UN United Nations(3) Corresponding to the sum of electrical energy and heat.

Methodological note455

Sustainability Statement:
performance indicators

456

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

We empower
sustainable progress
GRI/
EUSS

KPI

EU1

GENERATION

UM

December2022

December
2021

(MW)

27,68933,664

December2020 2022-2021

%

Scope

-5,975

-17.7

Enel

Installed capacity
Net efficient generation capacity by primaryenergy source
Thermal net capacity:

35,623

Coal

(MW)

6,590

6,910

8,903

-320

-4.6

Enel

CCGT

(MW)

13,89415,03915,009-1,145-7.6

Enel

Oil/Gas

(MW)

7,204

11,715

11,711-4,511

-38.5

Enel

Nuclear net capacity

(MW)

3,328

3,328

3,328

-

-

Enel

Renewable net capacity:(MW)

53,56150,06645,016

3,495

7.0

Enel

Hydroelectric(MW)

28,35527,847

27,820

508

1.8

Enel

Wind

(MW)

15,735

14,903

12,412

832

5.6

Enel

Geothermal

(MW)

931

915

882

16

1.8

Enel

Biomass and cogeneration

(MW)

6

6

5

-

-

Enel

Photovoltaic

(MW)

8,534

6,395

3,897

2,139

33.5

Enel

Total net electrical capacity(MW)

84,57887,05883,967-2,480-2.8

Enel

Net efficient generation capacity bygeographic area
Italy

(MW)

26,25225,60926,400

643

2.5

Italy

Iberia(MW)

22,044

21,14021,652904

4.3

IberiaLatin America(MW)

24,52423,903

21,960621

2.6

Latin America

Chile

(MW)

8,409

7,973

7,118

436

5.5

Chile

Argentina

(MW)

4,419

4,419

4,419

-

-

Argentina

Colombia

(MW)

3,711

3,589

3,592

122

3.4

Colombia

Peru

(MW)

2,255

2,294

2,301

-39

-1.7

Peru

Brazil

(MW)

5,071

4,981

3,922

90

1.8

BrazilUruguay

(MW)

-

-

-

-

-

Uruguay

Costa Rica

(MW)

81

81

81

-

-

Costa Rica

Guatemala

(MW)

164

164

164

-

-

GuatemalaPanama

(MW)

415

401

362

14

3.5

PanamaNorth America

(MW)

9,532

7,941

6,643

1,591

20.0

North America

Europe

(MW)

1,020

6,524

6,402

-5,504-84.4

EuropeAfrica, Asia and Oceania

(MW)

1,206

1,941

911

-735

-37.9

Africa, Asia andOceania

Total net electrical capacity(MW)

84,57887,05883,967-2,480-2.8

Enel

Thermoelectric plants(1)

(no.)

63

69

71

-6

-8.7

Enel

Coal plants

(no.)

7

8

10

-1

-12.5

Enel

Power generation plants

CCGT plants

(no.)

20

23

23

-3

-13.0

Enel

Oil/Gas plants

(no.)

44

48

48

-4

-8.3

Enel

Nuclear plants

(no.)

4

4

4

-

-

Enel

Renewable energy plants

(no.)

1,233

1,187

1,173

46

3.9

Enel

Hydroelectric plants

(no.)

765

739

748

26

3.5

Enel

Wind plants

(no.)

266

266

262

-

-

Enel

Photovoltaic plants

(no.)

161

141

122

20

14.2

Enel

Geothermal plants

(no.)

39

39

39

-

-

Enel

Sustainability Statement

457

GRI/
EUSS

KPI

UM

December2022

December
2021

December2020 2022-2021

Biomass plants

(no.)

2

2

2

(GWh)

88,811

88,285

%

Scope

-

-

Enel

75,909

526

0.6

Enel

OPERATING RESULTS
EU2

GENERATION
Net production by primary energy source
Thermal net production
Coal

(GWh)

19,722

13,85813,155

5,864

42.3

Enel

CCGT

(GWh)

54,436

51,71843,353

2,718

5.3

Enel

Oil/Gas(GWh)

14,652

22,70919,401-8,057

-35.5

Enel

Nuclear net production(GWh)26,50825,50425,839

1,004

3.9

Enel

Renewable net production(GWh)

112,448

108,817

105,360

3,631

3.3

Enel

Hydroelectric(GWh)51,72857,001

62,437-5,273

-9.3

Enel

Wind

(GWh)

43,25537,79130,992

5,464

14.5

Enel

Geothermal

(GWh)

6,117

6,086

6,167

31

0.5

Enel

Biomass and cogeneration

(GWh)

43

40

1

3

6.5

Enel

Photovoltaic(GWh)11,306

7,899

5,763

3,407

43.1

Enel

Total net production(GWh)227,767

222,605

207,108

5,162

2.3

Enel

(GWh)

48,46047,96442,495

496

1.0

Italy

Net production by geographic area
Italy
Iberia(GWh)

64,71557,59256,269

7,123

12.4

IberiaLatin America(GWh)75,59470,376

69,165

5,218

7.4

Latin America

Chile

(GWh)

22,21519,034

19,331

3,181

16.7

Chile

Argentina(GWh)

11,121

13,09913,901-1,978-15.1

Argentina

Colombia(GWh)

13,663

13,24114,146422

3.2

Colombia

Peru

(GWh)

9,615

9,585

8,774

30

0.3

Peru

Brazil(GWh)

16,60812,713

10,713

3,895

30.6

BrazilUruguay

(GWh)

-

-

-

-

-

Uruguay

Costa Rica

(GWh)

216

198

213

18

9.3

Costa Rica
Guatemala

Guatemala

(GWh)

659

548

518

111

20.2

Panama

(GWh)

1,498

1,958

1,569

-460

-23.5

PanamaNorth America(GWh)23,385

20,356

17,182

3,029

14.9

North America

Europe(GWh)

12,51323,736

20,461-11,223-47.3

EuropeAfrica, Asia and Oceania

(GWh)

3,099

2,580

1,537

519

20.1

Africa, Asia andOceania

Total net production(GWh)227,767

222,605

207,108

5,162

2.3

Enel

New renewable power(2):

(MW)

4,966

5,176

2,908

-210

-4.1

Enel

Hydroelectric

(MW)

557

33

15

524

-

Enel

Development of renewables

Wind

(MW)

1,827

2,596

2,086

-769

-29.6

Enel

Geothermal

(MW)

17

33

4

-16

-48.0

Enel

Biomass and cogeneration

(MW)

-

1

-

-1

-100.0Enel

Photovoltaic

(MW)

2,559

2,513

803

46

1.8

Enel

(km)

2,024,038

2,233,368

2,232,022-209,330

-9.4

Enel

NETWORK
EU4

EU4

458

Total electricity distribution network
Total high-voltage network(km)

40,56646,86046,661-6,294

-13.4

Enel

- of which underground cable

(km)

1,748

1,529

1,992

-1,289

-84.3

Enel

Total medium-voltage network(km)

717,992

891,221894,343-173,229

-19.4

Enel

- of which underground cable(km)

230,216

212,077

223,507-204,925

-96.6

Enel

Total low-voltage network(km)

1,265,480

1,295,287

1,291,018-29,807

-2.3

Enel

- of which underground cable(km)

410,142

387,314413,636-379,105

-97.9

Enel

Total electricity distribution network Italy(km)

1,165,131

1,151,482

1,159,921

13,6491.2

Italy

High-voltage network

(km)

20

19

20

1

3.0

Italy

Electricity distribution network bygeographic area

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

December2020 2022-2021

5

Appendix

KPI

UM

December2022

December2021- of which underground cable

(km)

3

3

11

Medium-voltage network(km)361,775

348,699

357,860

13,076

3.7

Italy- of which underground cable(km)

157,618

154,983

153,073-154,983-100.0

Italy

-3

%

Scope

-100.0Italy

Low-voltage network(km)

803,336

802,764

802,041

572

0.1

Italy

- of which underground cable(km)

279,646

279,325

278,936-279,325-100.0Italy

Total electricity distribution network
Romania(km)

133,116

132,334

131,322782

0.6

Romania

High-voltage network

(km)

6,531

6,528

6,528

3

0.0

Romania- of which underground cable

(km)

315

311

312

-311

-100.0Romania

Medium-voltage network(km)

36,09435,931

35,630163

0.5Romania- of which underground cable(km)

14,64814,36813,981-14,368-100.0Romania

Low-voltage network(km)

90,49189,874

89,164

617

0.7

Romania- of which underground cable(km)

21,454

27,586

27,586-27,586-100.0Romania

Total electricity distribution network Iberia(km)

317,829

316,506

315,365

1,323

0.4

IberiaHigh-voltage network(km)

19,763

19,713

19,64250

0.3

Iberia- of which underground cable

(km)

807

805

793

-805

-100.0IberiaMedium-voltage network(km)

114,673

114,336

114,003337

0.3

Iberia- of which underground cable(km)

41,74741,362

41,033-41,362-100.0IberiaLow-voltage network(km)

183,393

182,457

181,720936

0.5

Iberia- of which underground cable(km)

87,43086,63986,024-86,639-100.0IberiaTotal electricity distribution network Latin
America(km)

407,962

633,047

625,415-225,085-35.6

Latin America

High-voltage network(km)

14,252

20,60020,472-6,348-30.8

Latin America- of which underground cable

(km)

623

721

885

-481

-66.7

Latin America

Medium-voltage network(km)

205,450

392,255

386,850-186,805-47.6

Latin America- of which underground cable(km)

16,202

15,732

15,420-8,580-54.5

Latin America

Low-voltage network(km)

188,260

220,192

218,093-31,932-14.5

Latin America- of which underground cable(km)

21,612

21,35021,090-13,141-61.6

Latin America

Lenght of transmission lines by geographic
area
Brazil (Enel CIEN SA)

(km)

742

742

742

-

-

BrazilEnergy transported(3)

(TWh)

507.7

510.6

485.2

-2.9

-0.6

Enel

SALES
Electricity volumes sold by market
Italy

(GWh)

97,19592,76890,205

4,427

4.8

Italy

- of which free market(GWh)78,33465,57759,90012,757

19.5

Italy

- of which regulated market(GWh)18,861

27,19130,305-8,330

-30.6

Italy

Iberia(GWh)

79,00379,45880,772-455-0.6

Iberia- of which free market(GWh)

70,79368,75369,4302,040

3.0

Iberia- of which regulated market

(GWh)

8,210

10,705

11,342-2,495-23.3

IberiaRomania(GWh)

9,816.0

9,294

8,821

522

5.6

Romania- of which free market

(GWh)

9,809

9,036

7,178

773

8.6

Romania- of which regulated market

(GWh)

7

258

1,643

-251

-97.3

Romania

Latin America(GWh)135,093.0

127,906

118,388

7,187

5.6

Latin America- of which free market(GWh)39,31732,593

23,694

6,724

20.6

Latin America- of which regulated market(GWh)95,776

95,313

94,694463

0.5

Latin America

Total volumes of energy sold

(GWh)

321,107309,425

298,186

11,682

3.8

Enel- of which free market(GWh)

198,253

175,958

160,202

22,295

12.7

Enel- of which regulated market(GWh)122,854

133,467

137,984-10,613

-8.0

Enel

Volumes sold gas

3(bn m )

10.2

9.9

9.7

0.3

3.5

Enel

Italy

(bn m3)

4.7

4.3

4.4

0.4

9.9

Italy

- mass market customers(bn m3)

3.2

2.9

2.9

0.3

8.9

Italy

- business customers

3(bn m )

1.6

1.4

1.5

0.2

12.1

Italy

Iberia(bn m3)

4.9

5.2

5.0

-0.3

-5.6

IberiaSustainability Statement

459

GRI/
EUSS

2-6

UM

December2022

December
2021

Romania3(bn m )

0.3

0.2

0.1

0.1

33.0

Romania

Latin America(bn m3)

0.3

0.2

0.2

0.1

71.0

Latin America
Enel

KPI

December2020 2022-2021

%

Scope

ECONOMIC RESULTS(4)Revenues(mil euros)

140,51785,71966,00454,798

63.9

Italy

(mil euros)

83,50845,41732,20338,091

83.9

Italy

Iberia(mil euros)

32,83321,052

17,17011,78156.0

IberiaLatin America

Latin America(mil euros)

21,334

16,957

13,903

4,377

25.8

Europe(mil euros)

87

14

2,085

73

-

EuropeNorth America(mil euros)

2,214

1,513

1,367

701

46.3

North America

Africa, Asia and Oceania(mil euros)

266

241

153

25

10.4

Africa, Asia andOceania

Other, eliminations and adjustments(mil euros)

275

525

-877

-250

EBITDA(mil euros)

19,91817,567

16,903

2,351

13.4

Enel

Italy

(mil euros)

6,307

6,633

7,824

-326

-4.9

Italy

Other,-47.6 eliminations andadjustments

Iberia(mil euros)

5,230

4,183

3,775

1,047

25.0

IberiaLatin America(mil euros)

6,579

4,143

4,150

2,436

58.8

Latin America

Europe(mil euros)

27

-5

509

32

-

EuropeNorth America(mil euros)

940

684

778

256

37.4

North America
Africa, Asia andOceania

Africa, Asia and Oceania(mil euros)

83

110

55

-27

-24.5

Other, eliminations and adjustments(mil euros)

752

1,485

-188

-733

Other,-49.4 eliminations andadjustments

(%)

31.7

38.5

46.3

-6.8

Italy

-

Italy

Iberia

(%)

26.3

24.3

22.3

2.0

-

IberiaLatin America

(%)

33.0

24.0

24.6

9.0

-

Latin America

Europe

(%)

0.1

0.0

3.0

0.1

-

EuropeNorth America

(%)

4.7

4.0

4.6

0.7

-

North America
Africa, Asia andOceania

Africa, Asia and Oceania

(%)

0.4

0.6

0.3

-0.2

-

Other, eliminations and adjustments

(%)

3.8

8.6

-1.1

-4.8

Other,- eliminations andadjustments

EBIT(mil euros)

8,741

5,378

5,463

3,363

62.5

Enel

Group net income(mil euros)

5,218

3,758

3,622

1,460

38.9

Enel

Value generated and distributed forstakeholders(4)Economic value generated directly:
Revenues(mil euros)

140,82185,865

66,10054,95664.0

Enel

Economic value distributed:(mil euros)

131,748

78,68457,93253,064

67.4

Enel

Operating costs(mil euros)

114,384

62,063

42,63452,321

84.3

Enel

Personnel and benefit cost(mil euros)

3,646

4,296

3,956

-650

-15.1

Enel

Payment to lenders of capital (shareholders
and lenders)(5)(mil euros)

7,691

7,409

7,082

282

3.8

Enel

Payments to governments(mil euros)

6,027

4,916

4,260

1,111

22.6

Enel

Economic value generated(mil euros)

9,073

7,181

8,168

1,892

26.3

Enel

Investments(6)(mil euros)

14,347

12,997

10,197

1,350

10.4

Enel

Italy

(mil euros)

4,640

3,842

2,842

798

20.8

Italy

Iberia(mil euros)

2,316

2,202

1,638

114

5.2

IberiaLatin America

Investments

460

Latin America(mil euros)

4,289

3,772

2,859

517

13.7

Europe(mil euros)

224

456

411

-232

-50.9

EuropeNorth America(mil euros)

2,491

2,293

1,816

198

8.6

North America

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

UM

December2022

December
2021

Africa, Asia and Oceania(mil euros)

164

217

417

Total Abroad(mil euros)

9,484

8,890

Adjustments(mil euros)

223

265

KPI

Our performance

December2020 2022-2021

5

Appendix

%

Scope

-53

-24.4

Africa, Asia andOceania

7,142

594

6.7

Total Abroad

213

-42

-15.8

Enel

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

In some thermal plants, multiple technology units are present.
New renewable power, excluding disposals and changes in scope, mainly in North, Central and South America.
The distributed electricity figure for 2021 takes into account a more precise determination of the quantities transported.
The figures for 2021 have been restated, for comparative purposes only, to take into account the classification under “Net income from discontinued operations” of the results pertaining to the assets held in Russia (sold in Q4 2022), Romania and Greece, as the requirements of IFRS 5 for their classification as“discontinued operations” have been met.
(5) The amount includes the “Total Tax Borne”, which represents the costs for the taxes paid by the Group. The 2021 figures include a more specific determination.
(6) The data refers only to continuing operations and therefore do not include the figures for ‘assets held for sale’.

Sustainability Statement461

Zero emissions ambition,
Conservation of natural capital
GRI/
EUSS

UM

December2022

December
2021(mil t)

51.93

50.56

44.67

Other CO2eq emissions due toelectricity production and otheractivities(1)(mil tCO2eq)

1.14

1.01

Total direct emissions (Scope 1)(mil tCO2eq)

53.07

51.57

KPI

December2020 2022-2021

%

Scope

1.37

2.7

Enel

0.90

0.13

12.9

Enel

45.57

1.50

2.9

Enel

EMISSIONS
305-1 Direct greenhouse gas emissions (Scope 1)CO2 emissions from the electricity
production and heat305-2 Indirect greenhouse gas emissions (Scope 2)
Purchased electricity from the grid((2)- location based(mil tCO2eq)

0.76

0.81

0.79

-0.05

-6.2

Enel

- market based(mil tCO2eq)

1.20

1.35

1.30

-0.15

-11.1

Enel

Distribution and transmission
system: energy losses(3)- location based(mil tCO2eq)

3.26

2.97

2.77

0.29

9.8

Enel

- market based(mil tCO2eq)

4.86

4.76

4.68

0.10

2.1

Enel

- location based(mil tCO2eq)

4.02

3.77

3.56

0.25

6.6

Enel

- market based(mil tCO2eq)

6.06

6.11

5.98

-0.05

-0.8

Enel

Supply chain (category 1)(5)(mil tCO2eq)

14.18

12.99

11.00

1.19

9.2

Enel

Coal mining (category 3)(mil tCO2eq)

1.53

1.07

1.06

0.46

43.0

Enel

Transport of coal by sea (category 3)(mil tCO2eq)

0.35

0.17

0.10

0.18

-

Enel

Extraction and trasport of gas (category 3)(mil tCO2eq)

8.42

10.01

9.13

-1.59

-15.9

Enel

Transport of other fuels (gas oil, biomass,WDF) (category 3)(mil tCO2eq)

0.01

0.01

0.01

-

-

Enel

Purchase of electricity for selling to end
client (category 3)(mil tCO2eq)

28.40

23.96

23.19

4.44

18.5

Enel

Transport of raw materials and waste(category 4)(mil tCO2eq)

0.01

0.00

0.00

0.01

-

Enel

Total Scope 2

Other indirect greenhouse305-3
emissions (Scope 3)(4)

Use of gas sold to end client (category 11)(mil tCO2eq)

22.90

22.25

21.95

0.65

2.9

Enel

Total indirect emissions (Scope 3)(mil tCO2eq)

75.80

70.46

66.45

5.34

7.6

Enel

(gCO2eq/
kWh)

233

229

218

4

1.7

Enel

Intensity of CO2 emissions related to energy
production(7)(gCO2/kWh)

225

222

211

3

1.4

Enel

Intensity of GHG Scope 1 emissions related
to energy production (SBTi)(8)(gCO2eq/
kWh)

229

225

214

4

1.8

Enel

Intensity of GHG Scope 1 and 3 emissions
related to Integrated Power (SBTi)(9)(gCO2eq/
kWh)

218

203

194

15

7.4

Enel

(mil t)

81.6

72.8

74.8

8.80

12.1

Enel

305-4 Specific emissions
Intensity of GHG Scope 1 emissions(6)305-5 Avoided emissions(10)305-7 Other atmospheric emissions(11)SO2 emissions(t)

16,602

15,615

20,547

987

6.3

Enel

NOx emissions(t)

74,22578,84676,256-4,621

-5.9

Enel
Enel

Dust emissions

(t)

1,227

1,099

1,243

128

11.6

H2S emissions

(t)

5,226

4,772

4,972

454

9.5

Enel

Hg emissions (thermal and coal)

(t)

0.08

0.05

0.05

0.03

60.0

Enel

Specific emissions462

SO2 emissions(g/kWh)

0.07

0.07

0.10

-

-

Enel

NOx emissions(g/kWh)

0.32

0.35

0.36

-0.03

-8.6

Enel

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performanceUM

December2022

December
2021(g/kWh)

0.005

0.005

0.010

(kgCFC-11eq)

43

180

Instances of non-compliance for whichmonetary and non-monetary sanctions
were incurred

(no.)

92

Instances of non-compliance for which nonmonetary sanctions were incurred(no.)

Instances of non-compliance for whichmonetary sanctions were incurred

KPI

5

December2020 2022-2021

Appendix

%

Scope

-

-

Enel

22

-137

-76.1

Enel

n.d.

n.d.

-

-

Enel

22

n.d.

n.d.

-

-

Enel

(no.)

70

n.d.

n.d.

-

-

Enel

Fines for instances of non-compliance withlaws and regulations occurred in the current
reporting period(mil euros)

0.01

n.d.

n.d.

-

-

Enel

Fines for instances of non-compliancewith laws and regulations occurred in theprevious reporting periods(mil euros)

0.15

n.d.

n.d.

-

-

Enel

Dust emissions
Ozone Depleting Substances
305-6
emissions
Total
2-27

Compliance with environmental laws andregulations(12)Environmental disputes
Environmental proceedings as defendant
Monetary value

(no.)

168

243

255

-75

-30.9

Enel

(mil euros)

1.80

5.00

84.71

-3.20

-64.0

Enel

ENERGY CONSUMPTION
302-1

Fuel consumption by primarysource in TJ
from non-renewable sources(TJ)

1,053,083

1,044,714

949,152

8,369

0.8

Enel

Coal

(TJ)

206,450

141,528

138,380

64,92245.9

Enel

Lignite

(TJ)

-

-

1,353

-

-

Enel

Fuel oil(TJ)

35,84834,78739,320

1,061

3.0

Enel

Natural gas(TJ)

469,425

549,312457,020-79,887

-14.5

Enel

Gas oil(TJ)

58,48648,482

39,23410,004

20.6

Enel

Uranium(TJ)

282,872

270,605

273,845

12,267

4.5

Enelfrom renewable resources(TJ)

54,98754,58855,440

399

0.7

Enel

Biomass, biogas and waste

(TJ)

1,044

1,136

1,936

-92

-8.1

Enel

Geothermal fluid(TJ)

53,94353,45253,504

491

0.9

Enel

Total direct consumption(TJ)

1,108,069

1,099,302

1,004,592

8,767

0.8

Enel

Fuel consumption by in Mtoe
from non-renewable sources(Mtep)

25.2

25.0

22.5

0.2

0.8

Enel

Coal

(Mtep)

4.9

3.4

3.3

1.5

44.1

Enel

Lignite(Mtep)

-

-

0.03

-

-

Enel

Fuel oil(Mtep)

0.9

0.8

0.9

0.1

12.5

Enel

Natural gas(Mtep)

11.2

13.1

10.9

-1.9

-14.5

Enel

Gas oil(Mtep)

1.4

1.2

0.9

0.2

16.7

Enel

Uranium(Mtep)

6.8

6.5

6.5

0.3

4.6

Enel

from renewable resources(Mtep)

1.3

1.3

1.4

-

-

Enel

Biomass, biogas and waste(Mtep)

0.02

0.03

0.05

-0.01

-33.3

Enel

Geothermal fluid(Mtep)

1.3

1.3

1.3

-

-

Enel

Total direct consumption(Mtep)

26.5

26.3

23.9

0.2

0.8

Enel

Coal

(%)

19.6

11.2

14.6

8.4

-

Enel

Lignite

(%)

-

-

0.1

-

-

Enel

Incidence of fuel consumption
from non-renewable sources

Fuel oil

(%)

3.4

2.8

4.1

0.6

-

Enel

Natural gas

(%)

44.6

43.5

48.2

1.1

-

Enel

Gas oil

(%)

5.6

3.8

4.1

1.8

-

Enel

Uranium

(%)

26.9

21.4

28.9

5.5

-

Enel

Sustainability Statement

463

GRI/
EUSS
302-1

KPI

UM

December2022

December
2021

December2020 2022-2021(TJ)

11,62023,87823,145(,000 t)

110.7

61.9

83.9

%

Scope

-12,258

-51.3

Enel

-22.0

-35.5

Enel

Indirect energy consumption bydestination
Total energy consumption
RAW MATERIALS
Resources used in the production
process301-1 Consumables
Lime

301-2

Ammonia(,000 t)

37.0

20.4

16.1

16.6

81.4

Enel

Caustic soda(,000 t)

47.4

65.0

76.9

-17.6

-27.1

Enel

Slaked lime(,000 t)

4.6

3.3

3.8

1.3

39.4

Enel

Sulfuric/chloride acid(,000 t)

7.3

8.7

7.5

-1.4

-16.1

Enel

Other

(,000 t)

34.7

26.8

17.6

7.9

29.5

Enel

Total

(,000 t)

241.8

186.2

205.8

55.6

29.9

Enel

Percentage of materials used thatderive from recycled material
compared to total consumption of eachresource
Lubricant oil

(%)

3.2

11.9

3.8

-8.7

-

Enel

Dielectric oil

(%)

53.8

67.0

28.6

-13.2

-

Enel

Paper for printing

(%)

3.4

2.2

76.0

1.2

-

Enel

By thermoelectric production(,000 ML )

56.5

52.8

49.1

3.7

7.1

Enel

By nuclear production(,000 ML )

19.0

19.6

19.2

-0.6

-3.3

Enel

WATER
Water withdrawal used byproduction process

By other industrial uses(,000 ML )

0.5

0.7

0.7

-0.2

-31.7

Enel

Total water withdrawal(,000 ML )

76.0

73.1

69.1

2.9

3.9

Enel

Water requirements by production
process(13)(l/kWheq)

0.27

0.29

0.29

-0.02

-6.9

Enel

Withdrawal from scarce source(14)(,000 ML )

53.7

56.4

54.4

-2.7

-4.8

Enel

Surface water (wetlands, lakes,
rivers) total(,000 ML )

37.9

40.5

39.8

-2.6

-6.5

Enel

- freshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

37.3

40.3

39.5

-3.0

-7.5

Enel

-o
 ther water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.6

0.2

0.3

0.4

-

Enel

303-3 Water withdrawal by source

Ground water (from wells) total(,000 ML )

9.5

9.9

9.0

-0.4

-3.8

Enel

- freshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

9.4

9.9

9.0

-0.5

-5.1

Enel

- other water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.1

0.0

-

0.1

-

Enel

(,000 ML )

6.3

6.0

5.7

0.3

4.2

Enel

- f reshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

6.0

5.3

4.8

0.7

12.7

Enel

- other water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.3

0.7

0.9

-0.4

-58.1

Enel

Withdrawal from non scarce source:(,000 ML )

22.3

16.7

14.6

5.6

33.4

Enel

Sea water (used as is and dissalated)(,000 ML )

22.2

16.6

14.5

5.5

33.2

Enel

- freshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

5.7

5.0

0.0

0.7

13.6

Enel

- other water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

16.5

11.6

14.5

4.8

41.6

Enel

from produced water (amount used insideplants)(,000 ML )

0.1

0.1

0.1

-

-

Enel

Total withdrawal(14)(,000 ML )

76.0

73.1

69.1

2.9

3.9

Enel

Water from aqueduct total

464

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

KPI

UM

December2022

December
2021

Percentage of recycled and reused water

(%)

9.4

8.3

8.2

(,000 ML )13,651.7

14,956.3

5

December2020 2022-2021

Appendix

%

Scope

1.1

13.3

Enel

14,403.8-1,304.6

-8.7

Enel

Water used for once through coolingsystemTotal
from surface water(,000 ML )4,782.6

6,213.0

5,281.3-1,430.4

-23.0

Enel

from sea water(,000 ML )8,869.2

8,743.3

9,122.5

125.9

1.4

Enel

Total withdrawals(,000 ML )

13,727.7

15,011.9

14,455.3-1,284.2

-8.6

Enel

Water withdrawal by source in
303-3“water stressed” areas(15)Withdrawal from scarce source(,000 ML )

12.7

15.5

12.7

-2.8

-17.8

Enel

Surface water (wetlands, lakes, rivers) total(,000 ML )

5.8

8.5

7.0

-2.7

-31.6

Enel

- f reshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

5.7

8.5

7.0

-2.8

-32.5

Enel

-o
 ther water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.1

-

-

-

-

Enel

(,000 ML )

5.8

6.4

4.9

-0.6

-9.7

Enel

- f reshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

5.8

6.4

4.9

-0.6

-9.7

Enel

-o
 ther water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

-

-

-

-

-

Enel

Ground water (from wells) total

Water from aqueduct total(,000 ML )

1.1

0.6

0.8

0.5

77.3

Enel

- f reshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.8

0.4

0.5

0.4

-

Enel

-o
 ther water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.3

0.3

0.3

-

-

Enel

Withdrawal from non scarce source:(,000 ML )

1.9

1.3

0.8

0.6

43.6

Enel

Sea water (used as is and dissalated)(,000 ML )

1.9

1.3

0.8

0.6

43.6

Enel

- f reshwater (≤ 1,000 mg/l Total Dissolved
Solids)(,000 ML )

0.9

0.8

-

0.1

-

Enel

-o
 ther water (> 1,000 mg/l Total Dissolved
Solids)(,000 ML )

1.0

0.5

0.8

0.5

-

Enel

from produced water (amount used insideplants)(,000 ML )

-

-

-

-

-

Enel

Total

(,000 ML )

14.6

16.8

13.5

-2.2

-12.9

Enel

(,000 ML )13,682.4

14,968.0

14,433.7-1,285.6

-8.6

Enel

303-4 WATER DISCHARGE
Water discharge by destination
Surface water (wetlands, lakes, rivers)(,000 ML )4,785.5

6,189.1

5,275.1-1,403.7

-22.7

Enel

Groundwater(,000 ML )

-

-

1.1

-

-

Enel

Water in municipal/industrial treatment
plants(,000 ML )

3.0

6.4

8.6

-3.4

-53.5

Enel

Third party water(,000 ML )

79.6

89.0

89.0

-9.5

-10.6

Enel

Seawater(,000 ML )8,814.5

8,683.5

9,059.9

131.0

1.5

Enel

(,000 ML )

45.2

43.8

37.9

1.4

3.2

Enel

(,000 ML )

9.3

10.5

8.3

-1.2

-11.8

Enel

Non-hazardous waste(16)(t)

3,300,765

3,008,536

2,268,859

292,229

9.7

Enel

Hazardous waste(t)

55,94064,36551,816-8,425

-13.1

Enel

Total waste produced(16)(t)

3,356,705

3,072,901

2,320,675

283,804

9.2

Enel

303-5 Water consumptions
Consumption in water stresse areas(15)306-3 WASTE PRODUCEDof which: ash and gypsum(t)1,129,818

744,203801,726

385,615

51.8

Enel

of which: oils

(t)

5,273

5,495

8,904

-222

-4.0

Enel

of which: costruction and demolition
waste(16)(t)

1,063,564

1,052,701

627,192

10,863

1.0

Enel

Total waste sent for recovery(16)

(%)

84.39

85.30

82.50

-0.9

-

Enel

(t)

21,96038,41825,183-16,458

-42.8

Enel

Landfill

(t)

5,270

7,972

9,348

-2,702

-33.9

Enel

Incineration with energy recovery

(t)

853

684

1,632

169

24.7

Enel

Hazardous waste by disposal
306-3
method(16)Recycled or sent for recovery

Sustainability Statement

465

GRI/
EUSS

KPI

UM

December2022

December
2021

December2020 2022-2021

%

Scope

Incineration without energy recovery

(t)

451

752

462

-301

-40.0

Enel

Other disposal methods(t)

27,406

16,53915,191

10,867

65.7

Enel

Total

(t)

55,94064,36551,816-8,425

-13.1

Enel

Non-hazardous waste by disposal
method(16)Recovery (including energy recovery)(t)

2,810,895

2,622,376

1,932,360

188,519

7.2

Enel

Landfill(t)

417,728

386,160

336,499

31,5688.2

Enel

Incineration with energy recovery

(t)

572

551

459

21

3.8

Enel

Incineration without energy recovery

(t)

16

103

108

-87

-84.5

Enel

Other disposal methods(t)71,55539,717

41,532

31,838

80.2

Enel

Total

(t)

3,300,765

3,008,536

2,268,859

292,229

9.7

Enel

Mitigation of the impact on thelandscape/territory(17)
LV/MV cabling ratio

(%)

60.7

60.5

60.4

0.2

-

Enel

LV cabling ratio

(%)

82.9

82.9

82.4

-

-

Enel

MV cabling ratio

(%)

30.1

29.3

29.4

0.8

-

Enel

Assessment of the biodiversity projects
impacts
Number of sites used for operational activities

(no.)

1,324

1,283

1,258

41

3.2

Enel

Total area used for operational activities(ha)47,872

34,93543,95812,93737.0

Enel

Number of sites

(no.)

1,324

1,283

1,258

41

3.2

Enel

Hectares(ha)47,872

34,93543,95812,93737.0

EnelAssessment: sites in which it has been
conducted biodiversity impact assessmentsin the past five years

Exposure: sites with biodiversity impact
assessment in close proximity to criticalbiodiversity, and total area of these sites
Number of sites

(no.)

33

29

20

4

13.8

Enel

Hectares

(ha)

808

466

336

342

73.4

Enel

Number of sites

(no.)

33

29

20

4

13.8

Enel

Hectares

(ha)

808

466

336

342

73.4

Enel

Management Plans: sites with biodiversity
impact assessment and located in close
proximity to critical areas that have a
biodiversity management plan, and total areof these sites

466

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix(1)

This share includes: CO2 emissions from the use of diesel in auxiliary engines; CH4 leak emissions from gas-fired power plants; N2O and CH4 as a result of the
combustion of fossil fuels; NF3, SF6 and refrigerant gases expressed as CO2 equivalent. This share also includes biogenic emissions from hydroelectric basins.
The 2020 data has been redetermined following a refinement of the methodology.
(2) “Scope 2” – Emissions from energy taken from the grid: indirect CO2 emissions due to the consumption of electricity for moving fuel, electricity distribution,
property management and electricity purchased from the grid by energy generation plants are calculated as the product of the electricity consumption multiplied by the respective weighted specific CO2 emission coefficients of the whole generation mix of the countries where the Enel Group operates (source:
Enerdata - https://www.enerdata.net/ for location-based calculation and https://www.aib-net.org/facts/european-residual-mix for market-based calculation).
Scope 2 is calculated according to the “location based” method (based on the company’s location). It is the result of the calculation of greenhouse gas emissions resulting from electricity generation in the area where the consumption takes place. Scope 2 is calculated according to the “market based” method(based on the market where the company operates). For companies operating in European countries, the reference market is the European one (EU). In theevent of supply of energy from renewable sources, the electricity’s origin must be certified by “contractual instruments that meet the minimum quality criteria”.
In Europe, the only way to prove the electricity’s origin is the Guarantees of Origin. Companies that use electricity whose origin is not certified by these Guarantees must perform the calculation by referring to the emissions associated with the residual mix (source: Greenhouse Gas Protocol Scope 2 Guidance, 2015).
The 2021 and 2020 values were redetermined following a methodological change to the calculation of the indirect emissions (Scope 2) related to the pumpingof water for energy generation, in line with the new SBTi certification.
(3) “Scope 2” – Emissions from energy losses from the network grid: with its business, the Group covers the entire generation and sales chain in Europe (Italy andSpain) and in five South American countries (Argentina, Brazil, Colombia, Chile and Peru). To calculate emissions, it has been assumed that the vertical chainof activities takes place within the country. The emissions caused by the losses were calculated based on the part of energy fed into the grid that exceeds theshare produced in the country in question, so as to avoid any double counting of emissions already included in Scope 1. The emissions are calculated according
to the dual location and market based view.
(4) “Scope 3”:- Indirect CO2 emissions for the freighting of coal by sea is estimated on the basis of the actual routes taken by the ships. Since 2020, the estimate of the shareof emissions for rail freight has no longer been reported as this form of transport is no longer used.
- Indirect CO2 emissions from the transportation of consumable materials, fuel oil, diesel, solid biomass, WDF and waste are estimated based on the quantities
of raw materials transported, taking into consideration trucks with a capacity of 28 tons, which cover average (round trip) distances of 75 km with a consumption of 1 liter of diesel for every 3 km travelled and an emission coefficient of 3 kg of CO2 for each liter of diesel consumed.
- The figure for emissions from coal mining is a rough estimate of the fugitive methane emissions (CH4) from coal imported and used by the Enel Group forthermoelectric generation.
- In terms of the use of the gas sold by end customers, the figure for emissions from the combustion of natural gas is calculated based on the energy amount(TWh) of gas sold multiplied by its emission factor (source: IPCC for CO2, N2O e CH4).
- To calculate emissions related to electricity purchased for sale to end customers, it has been assumed that the vertical chain of activities takes place within the
country. The emissions of the share sold and produced by the company have not been included in the calculation since they already fall under Scope 1. The
share for the fraction sold but not produced by country was calculated according to a new calculation methodology by multiplying the energy amount by the
specific country-level emission (source: Enerdata). Emissions from network losses are not included in the calculation since they are reported under Scope 2.
- The emissions from the extraction and transport of natural gas consider the share of gas both used in thermal power plants and sold in the retail market.
- The emissions from the supply chain consider an intensive value equal to: 889, 968, 969 tCO2eq/M€ spent in 2022, 2021, 2020 respectively. The estimate ofemissions for the 3 years is based on the average value of the Environmental Product Declaration (EPD) or ISO CFP 14067 certifications received in the threeyear period 20-21-22 for more than 60% of the supplies purchased. The remainder was estimated using international databases (Ecoinvent/Exiobase). Emissions from works have been estimated based on data from sustainable construction sites and emissions of services have been estimated using international
databases.
(5) The 2021 and 2020 values have been redetermined following a change in the methodology.
(6) The specific emissions were calculated considering total direct emissions (Scope 1) in relation to total renewable, nuclear and thermoelectric generation, including the contribution of heat and excluding pumped storage generation. The 2021 figures include a more specific determination thereof.
(7) The specific emissions were calculated considering total direct emissions of CO2 in relation to total renewable, nuclear and thermoelectric generation, including
the contribution of heat and the pumped storage energy generation.
(8) KPI corresponding to the new target certified by SBTi in 2022. The specific emissions were calculated considering total direct emissions (Scope 1) related to thegeneration of electricity (including CO2, CH4, N2O), in relation to total renewable, nuclear and thermoelectric generation, including the contribution of heat andexcluding pumped storage generation.
(9) KPI corresponding to the new 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, nuclear and thermoelectric generation, including the contribution of heat and excluding
pumped storage generation, and to total purchased electricity.
(10) Avoided Group emissions are calculated as the sum of the avoided emissions in the various countries. The value is calculated as the product of the generationof electricity obtained from a renewable or nuclear source and the specific CO2 emissions from the thermoelectric generation of the country in which Enel ispresent (source: Enerdata, http://enerdata.net).
(11) Mercury emissions in 2021 amounted to 75 kg, associated with thermoelectric generation for Italy, Spain, Russia and Chile, 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 394 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).
(12) After implementing the new reporting criteria, the value of the indicator is available starting with 2022 reporting.
(13) Specific water needs are constituted by all the water withdrawal quotas from surface (including recovered rain water) and groundwater sources, by third parties, from the sea and from wastewater (quota for third party procurements) used for processes 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 quota of total withdrawals.
(14) The total value of process and closed-loop cooling water withdrawals for years 2020 and 2021 was recalculated following the refinement conducted in 2022 of
the way in which water withdrawn for cooling purposes at certain nuclear power plants in Spain was calculated.
(15) 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%).
This category also includes the thermal plants that use “fresh water”. 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”. The value for years 2020 and 2021 was recalculated following the refinement conducted in 2022 of the way in which water withdrawn for cooling purposes at certain nuclear power plants in Spain was calculated.

Sustainability Statement467

(16) The quantity of waste produced by the O&M activities during 2021 and 2020 was recalculated in line with the new 2022 reporting objective, extending it also to
the O&M waste produced by contractors who, working on behalf of Enel, generate waste that they manage under the own responsibility as a producer. Waste
by significant geographical area is reported below:

UM

December2022

December
2021

Italy

(t)

29,061

29,306

28,116

-245

-0.8

Italy

Iberia(t)

13,857

11,786

11,116

2,071

17.6

IberiaSouth America

(t)

9,089

13,777

7,218-4,688- Chile

(t)

1,093

741

408

352

47.5

Chile

KPI

December2020 2022-2021

%

Scope

Hazardous waste by significant
geographical areas-34.0 South America- Argentina

(t)

1,111

2,106

1,307

-995

-47.2

Argentina- Colombia

(t)

1,231

1,364

878

-133

-9.8

Colombia- Peru

(t)

1,142

905

741

237

26.2

Peru

- Brazil

(t)

4,500

8,658

3,884

-4,158-48.0

Brazil- other

(t)

12

3

-

-

-

Other

Europe

(t)

3,733

9,254

5,225

-5,521-59.7

EuropeRussia

(t)

1,924

7,368

2,660

-5,444-73.9

RussiaRomania

(t)

1,802

1,859

2,550

-57

-3.1

Romania

Greece

(t)

7

27

14

-20

-74.1

GreeceBulgaria

(t)

-

-

1

-

-

Bulgaria

Other

(t)

199

243

-

-

-

Other

Italy(15)(t)

2,735,469

2,445,104

1,657,160

290,365

11.9

Italy

Iberia(15)(t)

201,380

220,506

315,963-19,126-8.7

IberiaSouth America(t)357,387

327,563

279,854

29,824

9.1 South America- Chile(t)

97,520120,645

138,464-23,125

-19.2

Chile

- Argentina

(t)

2,793

2,629

11,119164

6.2

Argentina- Colombia(t)100,705

98,182

6,668

2,523

2.6

Colombia- Peru(t)

30,03919,39733,016

10,64254.9

Peru- Brazil(t)

126,165

86,52090,58839,645

45.8

Brazil- other

(t)

165

189

-

-24

-12.7

Other

Europe(t)

6,140

14,96915,567-8,829-59.0

EuropeRussia

(t)

1,365

9,828

11,121-8,463-86.1

RussiaRomania

Non-hazardous waste by significant
geographical areas

Romania

(t)

4,775

5,134

4,440

-359

-7.0

Greece

(t)

-

6

2

-6

-100.0

GreeceBulgaria

(t)

-

-

3

-

-

Bulgaria

Other

(t)

389

393

-

-

-

Other

(17) 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 increase in
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 bare conductor line. The number of sites does not include nuclear plants. The hectares reported do not include hydroelectric basins. The impact assessment considered
the active basins in terms of biodiversity. Compared with last year, KPI mapping and calculation tools were refined, which led to a slight change in the figurecompared to 2021.
(18) The number of sites does not include nuclear plants. Hectars reported do not include hydroelectric reservoirs. For the assessment of the impact, the active
projects on biodiversity have been considered. Compared to last year, the KPI mapping and calculation tools have been refined, which led to a slight change
in the figure compared to 2021.

468

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

AppendixClean electrification
GRI/
EUSS

KPI

EU3

CUSTOMERS

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

(no.)

21,382,665 21,824,404 22,612,004-441,739

-2.0

Italy

Electricity market (Final number ofcustomers)
Customers Italy
Free market(no.)

11,879,742

10,200,185

9,478,660

1,679,557

16.5

Italy

Regulated market(no.)

9,502,923

11,624,219

13,133,344-2,121,296

-18.2

Italy

Customers Iberia(no.)

10,545,281

10,250,657

10,420,495

294,624

2.9

IberiaFree market(no.)

6,829,138

5,877,494

5,654,659

951,644

16.2

IberiaRegulated market(no.)

3,716,143

4,373,163

4,765,836-657,020-15.0

IberiaCustomers Latin America(no.) 25,392,600

28,253,787

27,642,485-2,861,187-10.1

Latin America

Free market

(no.)

6,871

6,571

5,047

300

4.6

Latin America

Regulated market(no.)

25,385,729

28,247,216

27,637,438-2,861,487-10.1

Latin America

Customers Latin America Argentina(no.)

2,600,926

2,548,983

2,507,652

51,943

2.0

Argentina

Free market

(no.)

-

-

-

-

-

Argentina

Regulated market(no.)

2,600,926

2,548,983

2,507,652

51,943

2.0

Argentina

Customers Latin America - Brazil(no.)

15,389,166

18,472,098 18,063,146-3,082,932-16.7

BrazilFree market

(no.)

3,173

2,586

1,488

-

-

BrazilRegulated market(no.)

15,385,993

18,469,512

18,061,658-3,083,519-16.7

BrazilCustomers Latin America - Chile(no.)

2,081,420

2,039,783

2,008,812

41,6372.0

ChileFree market

(no.)

1,782

1,969

1,567

-

-

Chile

Regulated market(no.)

2,079,638

2,037,814

2,007,245

41,824

2.1

Chile

Customers Latin America Colombia(no.)

3,790,236

3,704,919

3,611,245

85,317

2.3

Colombia

Free market

(no.)

1,221

1,325

1,295

-

-

Colombia

Regulated market(no.)

3,789,015

3,703,594

3,609,950

85,421

2.3

Colombia

Customers Latin America - Peru

(no.)

1,530,852

1,488,004

1,451,630

42,8482.9

PeruFree market

(no.)

695

691

697

4

0.6

Peru

Regulated market(no.)

1,530,157

1,487,313

1,450,933

42,844

2.9

Peru

Customers Romania(no.)

2,905,352

3,044,844

3,049,476-139,492-4.6

Romania

Free market(no.)

2,902,732

3,018,759

2,233,037-116,027-3.8

Romania

Regulated market

(no.)

2,620

26,085

816,439-23,465-90.0

Romania

Total Customers Enel(no.) 60,225,898

63,373,692 63,724,460-3,147,794

-5.0

Enel

Total Free market(no.)

21,618,483

19,103,009

17,371,403

2,515,474

13.2

Enel

Regulated market(no.)

38,607,415

44,270,683

46,353,057-5,663,268

-12.8

Enel

Customers Italy(no.)

4,581,245

4,165,317

4,060,646

415,928

10.0

Italy

Customers Spain(no.)

1,798,737

1,684,369

1,673,424

114,368

6.8

IberiaCustomers Romania(no.)

178,993

119,415

59,37959,578

49.9

Romania

Customers Chile

(no.)

9

8

8

-

-

Chile

Gas market (Final number ofcustomers)

Customers Colombia

(no.)

13

17

15

-4

-23.5

Colombia

Total customers gas market(no.)

6,558,997

5,969,126

5,793,472

589,871

9.9

Enel

Total customers Enel electricity
and gas(no.) 66,784,895

69,342,818

69,517,932-2,557,923

-3.7

Enel

PUBLIC LIGHTING
Customers public lighting

(no.)

2,619

2,792

3,006

-173

-6.2

Italy

Light sources public lighting(,000)

3,023

2,821

2,724

202

7.2

Italy

Sustainability Statement

469

GRI/
EUSS

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Average thermoelectric
generation yield without heatcomponent

(%)

42.4

41.7

41.2

0.7

-

Enel

Average thermoelectric
generation yield with heat

(%)

42.8

42.9

42.4

-0.1

-

Enel

(%)

33.2

32.6

32.1

0.6

-

Enel

Yield oil/gas plants

(%)

34.4

35.0

34.3

-0.6

-

Enel

Yield CCGT plants

(%)

50.4

49.7

49.9

0.7

-

Enel

KPI
ENERGY AVAILABILITY ANDRELIABILITY

EU11

Efficiency thermoelectric
generation(1)Average yield by technology
without heat component
Yield coal plants

Average yield with heatcomponent by technology

EU30

Yield coal plants

(%)

33.2

32.6

32.1

0.6

-

Enel

Yield oil/gas plants

(%)

36.6

38.6

38.3

-2.0

-

Enel

Yield CCGT plants

(%)

50.5

49.9

50.1

0.6

-

Enel

Availability of thermoelectric
generation(1)

(%)

82.4

86.4

88.4

-4.0

-

Enel

Availability of thermoelectric
generation by source
Availability coal plants

(%)

67.7

78.4

84.9

-10.7

-

Enel

Availability oil/gas plants

(%)

81.5

88.5

90.4

-7.0

-

Enel

Availability CCGT plants

(%)

88.3

88.8

89.2

-0.5

-

Enel

Regulated

(%)

85.9

86.9

89.8

-1.0

-

Enel

Unregulated

(%)

81.1

86.2

87.7

-5.1

-

Enel

Frequency of interruptions bycustomer

(no.)

2.6

2.8

n.d.

-0.2

-7.1

Enel

Frequency of interruptions bycustomer Italy

(no.)

1.7

1.8

1.7

-0.1

-3.4

Italy

Frequency of interruptions bycustomer Romania (Dobrogea)

(no.)

2.9

3.2

3.8

-0.3

-9.4

Romania

Frequency of interruptions bycustomer Romania (Muntenia)

(no.)

2.3

2.5

2.9

-0.2

-8.7

Romania

Frequency of interruptions bycustomer Romania (Banat)

(no.)

3.0

3.2

3.9

-0.2

-6.3

Romania

Frequency of interruptions bycustomer Iberia

(no.)

1.3

1.4

1.4

-0.1

-5.8

IberiaFrequency of interruptions bycustomer Peru

(no.)

2.9

2.3

2.6

0.6

24.5

Peru

Frequency of interruptions bycustomer Chile

(no.)

1.6

1.5

1.5

0.1

6.7

Chile

Frequency of interruptions bycustomer Argentina

(no.)

5.3

4.8

4.5

0.5

10.4

Argentina

Frequency of interruptions bycustomer Brazil (Ampla)

(no.)

4.5

4.6

6.1

-0.1

-3.0

BrazilFrequency of interruptions bycustomer Brazil (Coelce)

(no.)

4.2

4.7

6.0

-0.5

-10.6

BrazilFrequency of interruptions bycustomer Brazil (CELG)

(no.)

7.7

8.4

8.5

-0.7

-8.3

BrazilAvailability of thermoelectric
generation by regulatory regime

EU28

470

Service interruptions - frequency(SAIFI)

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

EU29

EU12

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Frequency of interruptions bycustomer Brazil (ELPL)

(no.)

3.4

3.4

3.6

-

-

BrazilFrequency of interruptions bycustomer Colombia

(no.)

3.9

5.2

5.6

-1.3

-25.3

Colombia

Service continuity index(min.)

231

243

n.d.

-12.6

-5.2

Enel

Service interruptions - duration(SAIDI)
Service continuity index Italy(min.)

42

43

42

-1

-2.3

Italy

Service continuity index Romania(Dobrogea)(min.)

90

111

133

-21

-18.9

Romania

Service continuity index Romania(Muntenia)(min.)

77

95

117

-18

-18.9

Romania

Service continuity index Romania(Banat)(min.)

117

132

162

-15

-11.4

Romania

Service continuity index Iberia(min.)

64

70

75

-6

-8.6

IberiaService continuity index Peru

(min.)

608

414

419

194

46.9

Peru

Service continuity index Chile(min.)

159

152

171

7

4.6

Chile

Service continuity index Argentina(min.)

892

797

839

95

11.9

Argentina

Service continuity index Brazil(Ampla)(min.)

556

556

632

-

-

BrazilService continuity index Brazil(Coelce)(min.)

589

681

953

-92

-13.5

BrazilService continuity index Brazil(CELG)(min.)

915

1,088

953

-173

-15.9

BrazilService continuity index Brazil(ELPL)(min.)

374

396

443

-22

-5.6

BrazilService continuity index Brazil
Colombia(min.)

320

401

467

-81

-20.2

Colombia

(%)

4.7

4.7

4.9

-

-

Italy

Distribution grid losses
Grid losses Italy
Grid losses Romania (Dobrogea)

(%)

7.6

8.5

8.6

-0.9

-

Romania

Grid losses Romania (Muntenia)

(%)

8.9

8.9

9.7

-

-

Romania

Grid losses Romania (Banat)

(%)

9.0

8.7

9.0

0.3

-

Romania

Grid losses Iberia

(%)

7.0

7.1

7.1

-0.1

-

IberiaGrid losses Peru

(%)

8.2

8.5

8.8

-0.3

-

Peru

Grid losses Chile

(%)

5.1

5.2

5.2

-0.1

-

Chile

Grid losses Argentina

(%)

17.1

18.0

18.9

-0.9

-

Argentina

Grid losses Brazil (Ampla)

(%)

19.7

20.5

22.1

-0.8

-

BrazilGrid losses Brazil (Coelce)

(%)

15.2

16.1

15.8

-0.9

-

BrazilGrid losses Brazil (CELG)

(%)

12.9

11.3

11.4

1.6

-

BrazilGrid losses Brazil (ELPL)

(%)

11.0

10.3

10.6

0.7

-

BrazilGrid losses Colombia

(%)

7.5

7.5

7.6

-

-

Colombia

(%)

0.09

0.08

0.11

0.01

-

BrazilFrequency of surveys

(no.)

1

1

1

-

-

Italy

Written complaints and information
requests(,000)

104.0

87.4

88.3

16.6

19.0

Italy

(gg)

13.0

11.0

25.0

2.0

18.2

Italy

Sustainability Statement

471

Transmission grid losses
Transmission grid losses Brazil (EnelCIEN SA)
2-29

SERVICE QUALITY
ELECTRICITY MARKET ITALY
Regulated market

Response time to written
complaints
Free market

GRI/
EUSS

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Frequency of surveys

(no.)

1

1

1

-

-

Italy

Written complaints and information
requests(,000)

117.0

105.5

113.0

11.5

10.9

Italy

(gg)

20

18

14.0

2.0

11.1

Italy

(,000)

n.d.

108

-

-

-

Romania

(gg)

n.d.

25

30.0

-

-

Romania(,000)

n.d.

563

355.0

-

-

Romania

(gg)

n.d.

26

30.0

-

-

Romania(,000)

387.9

416

315.0

-28.1

-6.8

IberiaResponse time to written
complaints

(gg)

20.10

15.7

7.2

4.4

28.0

IberiaCommercial complaints(n./10.000
customers)

212

n.d.

n.d.

-

-

Enel

by time from disconnection to
payment - Italy (Regulated market)(no.)

208,025

155,390

201,288

52,635

33.9

Italy

< 48 h(no.)

108,161

86,401109,170

21,760

25.2

Italy

Response time to written
complaints
ELECTRICITY MARKET ROMANIA
Regulated market
Written complaints and information
requests
Response time to written
complaints
Free market
Written complaints and information
requests
Response time to written
complaints
ELECTRICITY MARKET IBERIA
Regulated market (ex TUR market )Written complaints and information
requests

EU27

ACCESSIBILITY OF ENERGY
Customers disconnected for nonpayment MARKET ITALY

472

48 h - 1 week

(no.)

50,28135,34746,652

14,934

42.2

Italy

1 week - 1 month(no.)

49,35733,534

45,123

15,823

47.2

Italy

1 month - 1 year

(no.)

225

108

343

117

-

Italy

> 1 year

(no.)

1

-

-

1

-

Italy

by time from payment toreconnection - Italy (Regulated
market)(no.)

208,025

155,390

201,288

52,635

33.9

Italy

< 24 h(no.)

196,604

144,508

185,090

52,096

36.1

Italy

24 h - 1 week(no.)

11,104

10,657

15,799

447

4.2

Italy

> 1 week

(no.)

317

225

399

92

40.9

Italy

by time from disconnection to
payment - Italy (Free market)(no.)

285,037

336,381

381,435-51,344

-15.3

Italy

< 48 h(no.)

152,857

175,457

203,228-22,600

-12.9

Italy

48 h - 1 week

(no.)

47,45564,65974,688-17,204

-26.6

Italy

1 week - 1 month(no.)

77,59089,645

95,630-12,055

-13.4

Italy

1 month - 1 year

(no.)

7,135

6,620

7,889

515

7.8

Italy

> 1 year

(no.)

-

-

-

-

-

Italy

by time from payment toreconnection - Italy (Free market)(no.)

285,037

336,381

381,435-51,344

-15.3

Italy

< 24 h(no.)

279,801

334,081379,565-54,280

-16.2

Italy

24 h - 1 week

(no.)

5,230

2,279

1,855

2,951

-

Italy

> 1 week

(no.)

6

21

15

-15

-71.4

Italy

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

by time from disconnection to
payment - Italy (Gas market)(no.)

45,00455,32559,923-10,321

-18.7

Italy

< 48 h(no.)

11,23913,41114,140-2,172

-16.2

Italy

48 h - 1 week(no.)

13,954

18,597

20,840-4,643

-25.0

Italy

1 week - 1 month(no.)

17,036

20,541

21,579-3,505

-17.1

Italy

1 month - 1 year

(no.)

2,775

2,776

3,364

-1

-

Italy

> 1 year

(no.)

-

-

-

-

-

Italy

by time from payment toreconnection - Italy (Gas market)(no.)

45,00455,32559,923-10,321

-18.7

Italy

< 24 h(no.)

42,216

51,40856,425-9,192

-17.9

Italy

24 h - 1 week

(no.)

2,763

3,891

3,471

-1,128

-29.0

Italy

> 1 week

(no.)

25

26

27

-1

-3.8

Italy

by time from disconnection to
payment - Romania (Regulated
market)

(no.)

1,746

1,053

4,280

693

65.8

Romania< 48 h

(no.)

875

394

1,338

481

-

Romania

Regulated market - Romania

48 h - 1 week

(no.)

341

198

321

143

72.2

Romania

1 week - 1 month

(no.)

389

318

345

71

22.3

Romania

1 month - 1 year

(no.)

141

143

1,032

-2

-1.4

Romania> 1 year

(no.)

-

-

1,244

-

-

Romania

by time from payment toreconnection - Romania(Regulated market)

(no.)

874

1,053

3,036

-179

-17.0

Romania< 24 h

(no.)

674

1,053

2,286

-379

-36.0

Romania

24 h - 1 week

(no.)

200

-

685

200

-

Romania> 1 week

(no.)

-

-

65

-

-

Romania

by time from disconnection to
payment - Romania (Free market)(no.)

16,271

3,285

4,218

12,986-

Romania< 48 h

(no.)

9,327

1,582

2,337

7,745

-

Romania

48 h - 1 week

(no.)

2,755

625

373

2,130

-

Romania

1 week - 1 month

(no.)

2,767

818

379

1,949

-

Romania

Free market - Romania

1 month - 1 year

(no.)

1,422

260

645

1,162

-

Romania> 1 year

(no.)

-

-

484

-

-

Romania

by time from payment toreconnection - Romania (Freemarket)(no.)

15,745

3,285

3,734

12,460-Romania< 24 h(no.)

11,446

3,285

3,058

8,161

-

Romania

24 h - 1 week

(no.)

4,299

-

636

4,299

-

Romania> 1 week

(no.)

-

-

40

-

-

Romania(no.)

21,77954,120

10,635-32,341-59.8

Iberia< 48 h(no.)

17,564

41,123

8,231-23,559-57.3

Iberia48 h - 1 week

(no.)

2,326

6,648

1,294

-4,322-65.0

IberiaRegulated market - Iberia
by time from disconnection to
payment - Iberia (Regulated
market)1 week - 1 month

(no.)

1,405

4,325

814

-2,920-67.5

Iberia1 month - 1 year

(no.)

484

2,024

296

-1,540-76.1

Iberia> 1 year

(no.)

-

-

-

-

-

Iberiaby time from payment toreconnection - Iberia (Regulated
market)(no.)

21,793

54,110

10,633-32,317-59.7

Iberia< 24 h(no.)

21,35651,75910,304-30,403-58.7

IberiaSustainability Statement

473

GRI/
EUSS

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

24 h - 1 week

(no.)

404

2,168

307

-1,764-81.4

Iberia> 1 week

(no.)

33

183

22

-150

-82.0

Iberia(no.)

14,21851,98012,346-37,762-72.6

Iberia< 48 h(no.)

12,232

43,57910,090-31,347-71.9

Iberia48 h - 1 week

(no.)

1,458

5,919

1,443

-4,461-75.4

IberiaFree market - Iberia
by time from disconnection to
payment - Iberia (Free market)

1 week - 1 month

(no.)

525

2,385

731

-1,860-78.0

Iberia1 month - 1 year

(no.)

3

97

82

-94

-96.9

Iberia> 1 year

(no.)

-

-

-

-

-

Iberiaby time from payment toreconnection - Iberia (Freemarket)(no.)

14,21551,977

12,345-37,762-72.7

Iberia< 24 h(no.)

13,84849,84412,000-35,996-72.2

Iberia24 h - 1 week

(no.)

334

1,969

318

-1,635-83.0

Iberia> 1 week

(no.)

33

164

27

-131

-79.9

Iberiaby time from disconnection to
payment - Iberia (Gas market)

(no.)

1,557

5,453

1,290

-3,896-71.4

Iberia< 48 h

(no.)

855

3,262

762

-2,407-73.8

Iberia48 h - 1 week

(no.)

329

1,217

267

-888

-73.0

Iberia1 week - 1 month

(no.)

322

813

134

-491

-60.4

Iberia1 month - 1 year

(no.)

51

161

127

-110

-68.3

Iberia> 1 year

(no.)

-

-

-

-

-

Iberiaby time from payment toreconnection - Iberia (Gas market)

(no.)

1,524

5,333

1,273

-3,809-71.4

Iberia< 24 h

(no.)

338

1,023

236

-685

-67.0

Iberia24 h - 1 week

(no.)

890

3,331

767

-2,441-73.3

Iberia> 1 week

(no.)

296

979

270

-683

-69.8

Iberiaby time from disconnection
to payment - Latin America(Regulated market)(no.)

4,211,428

4,336,099

716,328-124,671-2.9

Latin America< 48 h(no.)

2,457,160

2,760,105

332,424-302,945-11.0

Latin America

Regulated market - Latin America

48 h - 1 week

(no.)

537,479

799,81780,888-262,338-32.8

Latin America

1 week - 1 month(no.)

541,326

549,701

118,244-8,375-1.5

Latin America

1 month - 1 year

(no.)

647,637

224,389

184,769

423,248-

Latin America> 1 year(no.)

27,8262,087

325,739-Latin America

by time from payment toreconnection - Latin America(Regulated market)(no.)

3,459,876

5,389,308

811,756-1,929,432-35.8

Latin America< 24 h(no.)

2,797,521

3,931,289

788,338-1,133,768-28.8

Latin America

24 h - 1 week

(no.)

533,766

1,385,738

19,607-851,972-61.5

Latin America> 1 week(no.)

128,589

61,281

3,811

67,308-Latin America

Total proceedings(no.)

136,428

126,692

112,938

9,736

7.7

Enel

Incidence of proceedings as
defendant

(%)

69.1

71.3

62.7

-2.2

-

Enel

Disputes with customers(1)

Availability was calculated by reducing the causes of internal unavailability. Some 2021 and 2020 figures include a more specific determination of theamounts.

474

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Empowering Enel people
GRI/
EUSS

UM

December2022

December
2021

Total workforce(no.)

65,124

66,27966,717

KPI

December2020 2022-2021

%

Scope

-1,155-1.7

Enel-1,442-2.8

Enel

SIZE AND COMPOSITION OF WORKFORCE
2-7

Size of workforce- of which men(no.)

49,89951,341

52,346- of which men (%)

(%)

77

77

78

- of which women(no.)

15,225

14,93814,371- of which women (%)

(%)

23

23

22

Average workforce(no.)

66,47565,976

67,078

287

1.9

Enel

499

0.8

Enel

401-1 Change to size(1)New recruits

(no.)

6,412

5,401

3,131

1,011

18.7

Enel

Changes in scope(no.)-3,15323-971-3,176-

Enel

Terminations

(no.)

4,414

5,862

3,696

-1,448

-24.7

Enel

Balance(no.)-1,155-438-1,536

-717

-

Enel

(no.)

31,66430,27629,800

1,388

4.6

Italy

- of which men(no.)

24,94324,13623,971

807

3.3

Italy

- of which women

(no.)

6,721

6,140

5,829

581

9.5

Italy

Iberia(3)

(no.)

9,643

9,518

9,781

125

1.3

Iberia- of which men

(no.)

7,091

7,084

7,381

7

0.1

Iberia- of which women

4.8

IberiaWorkforce by geographic area and gender
Italy(2)

(no.)

2,552

2,434

2,400

118

(4)

(no.)

3,532

4,994

4,966

-1,462-29.3

Europe- of which men

(no.)

2,408

3,478

3,473

-1,070-30.8

Europe- of which women

(no.)

1,124

1,516

1,493

-392

-25.9

EuropeNorth America(5)

(no.)

2,100

1,914

1,639

186

9.7

North
America- of which men

(no.)

1,475

1,352

1,179

123

9.1

North
America- of which women

(no.)

625

562

460

63

11.2

North
America

Latin America(no.)

17,361

18,763

19,838-1,402-7.5

Latin
America- of which men(no.)

13,412

14,71215,852-1,300-8.8

Latin
America- of which women

(no.)

3,949

4,051

3,986

-102

-2.5

Latin
America

Africa Sub-Sahariana e Asia(6)

(no.)

824

814

693

10

1.2

Africa, Asiaand Oceania- of which men

(no.)

570

579

490

-9

-1.6

Africa, Asiaand Oceania- of which women

(no.)

254

235

203

19

8.1

Africa, Asiaand Oceania

Europe405-1 Workforce by level and gender
Manager

(no.)

1,366

1,377

1,397

-11

-0.8

Enel

- of which men

(no.)

1,025

1,052

1,095

-27

-2.6

Enel

(%)

75.0

76.4

78.4

-1.4

-

Enel

- of which women

(no.)

341

325

302

16

4.9

Enel

(%)

25.0

23.6

21.6

1.4

-

Enel

Sustainability Statement

475

GRI/
EUSS

KPI

UM

December2022

December
2021

Middle Manager(no.)

12,645

12,242

11,592- of which men

(no.)

8,523

8,403

(%)

67.4

68.6

- of which women

(no.)

4,122

3,839

(%)

32.6

31.4

30.4

1.2

-

Enel

White-collar(no.)

34,63435,55635,883

-922

-2.6

Enel

- of which men(no.)

24,07825,13825,706-1,060

-4.2

Enel

(%)

69.5

70.7

71.6

-1.2

-

Enel

(no.)

10,556

10,418

10,177

138

1.3

Enel

(%)

30.5

29.3

28.4

1.2

-

Enel

- of which women

December2020 2022-2021

%

Scope

403

3.3

Enel

8,069

120

1.4

Enel

69.6

-1.4

-

Enel

3,523

283

7.4

Enel

Blue-collar(no.)

16,478

17,104

17,845

-626

-3.7

Enel

- of which men(no.)

16,272

16,74817,476

-476

-2.8

Enel

(%)

98.7

97.9

97.9

0.8

-

Enel

- of which women

(no.)

207

357

369

-150

-42.0

Enel

(%)

1.3

2.1

2.1

-0.8

-

Enel

Index of professional qualification
Managers

(%)

2.1

2.1

2.1

-

-

Enel

Middle Managers

(%)

19.4

18.5

17.4

0.9

-

Enel

White-collar

(%)

53.2

53.6

53.8

-0.4

-

Enel

Blue-collar

(%)

25.3

25.8

26.7

-0.5

-

Enel

Italy(2)(no.)

31,66430,27629,800

1,388

4.6

Italy

(%) people of total Group people

(%)

48.6

45.7

44.7

2.9

-

Italy

Percentage of managers by geographical area476(%) people of total Group managers

(%)

63.3

60.1

58.3

3.2

-

Italy

(%) people of total not Group managers

(%)

48.3

45.4

44.4

2.9

-

Italy

Iberia(3)

(no.)

9,643

9,518

9,781

125

1.3

Iberia(%) people of total Group people

(%)

14.8

14.4

14.7

0.4

-

Iberia(%) people of total Group managers

(%)

17.9

20.3

21.3

-2.4

-

Iberia(%) people of total not Group managers

(%)

14.7

14.2

14.5

0.5

-

IberiaRomania

(no.)

3,265

3,291

3,248

-26

-0.8

Romania(%) people of total Group people

(%)

5.0

5.0

4.9

-

-

Romania(%) people of total Group managers

(%)

1.8

1.4

1.4

0.4

-

Romania(%) people of total not Group managers

(%)

5.1

5.0

4.9

0.1

-

Romania

Brazil

(no.)

7,510

8,970

10,040-1,460-16.3

Brazil(%) people of total Group people

(%)

11.5

13.5

15.0

-2.0

-

Brazil(%) people of total Group managers

(%)

5.1

4.7

4.2

0.4

-

Brazil(%) people of total not Group managers

(%)

8.0

9.8

15.3

-1.8

-

BrazilArgentina

(no.)

4,007

4,054

4,048

-47

-1.2

Argentina(%) people of total Group people

(%)

6.2

6.1

6.1

0.1

-

Argentina(%) people of total Group managers

(%)

2.0

1.7

1.7

0.3

-

Argentina(%) people of total not Group managers

(%)

6.2

6.2

6.2

-

-

Argentina

Chile

(no.)

2,219

2,271

2,281

-52

-2.3

Chile

(%) people of total Group people

(%)

3.4

3.4

3.4

-

-

Chile

(%) people of total Group managers

(%)

3.5

4.0

4.4

-0.5

-

Chile

(%) people of total not Group managers

(%)

3.4

3.4

3.4

-

-

Chile

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

KPI

UM

December2022

December
2021

Peru

(no.)

1,075

988

4

Our performance5

December2020 2022-2021
954

87

Appendix

%

Scope

8.8

Peru

(%) people of total Group people

(%)

1.7

1.5

1.4

0.2

-

Peru

(%) people of total Group managers

(%)

1.5

1.4

1.9

0.1

-

Peru

(%) people of total not Group managers

(%)

1.7

1.5

1.4

0.2

-

Peru

Colombia

(no.)

2,327

2,256

2,191

71

3.1

Colombia(%) people of total Group people

(%)

3.6

3.4

3.3

0.2

-

Colombia(%) people of total Group managers

(%)

2.6

2.7

2.6

-0.1

-

Colombia-

Colombia(%) people of total not Group managers

(%)

3.6

3.4

3.3

0.2

United States

(no.)

1,737

1,534

1,287

203

13.2 United States(%) people of total Group people

(%)

2.7

2.3

1.9

0.4

- United States(%) people of total Group managers

(%)

1.3

1.1

1.2

0.2

- United States(%) people of total not Group managers

(%)

2.7

2.3

1.9

0.4

- United States405-1 Workforce by age range and level(7)
< 30

(%)

13.1

11.5

10.9

1.6

13.9

Enel

- of whom Managers

(%)

-

-

-

-

-

Enel

- of whom Middle Managers

(%)

2.9

2.4

2.2

0.5

-

Enel

- of whom White-collar

(%)

13.1

10.5

9.7

2.6

-

Enel

- of whom Blue-collar

(%)

22.2

20.7

19.9

1.5

-

Enel

30 - 50

(%)

56.5

57.3

54.5

-0.8

-

Enel

- of whom Managers

(%)

51.4

46.8

46.9

4.6

-

Enel

- of whom Middle Managers

(%)

65.0

56.9

61.8

8.1

-

Enel

- of whom White-collar

(%)

53.2

52.1

51.5

1.1

-

Enel

- of whom Blue-collar

(%)

57.4

58.0

56.4

-0.6

-

Enel

> 50

(%)

30.4

31.2

34.6

-0.8

-

Enel

- of whom Managers

(%)

48.6

46.2

53.1

2.4

-

Enel

- of whom Middle Managers

(%)

32.1

27.4

36.0

4.7

-

Enel

- of whom White-collar

(%)

33.8

33.1

38.8

0.7

-

Enel

- of whom Blue-collar

(%)

20.4

21.3

23.7

-0.9

-

Enel

(anni)

43.6

43.8

44.1

-0.2

-0.5

Enel

(no.)

64,37765,45365,822-1,076-1.6

Enel- of which men(no.)

49,38750,80351,783-1,416-2.8

Enel- of which women(no.)

14,98914,65014,039

339

2.3

Enel

Fixed-term contracts

(no.)

747

826

895

-79

-9.6

Enel

- of which men

(no.)

511

537

563

-26

-4.8

Enel

Average age
2-7

Workforce by type of contract and gender
Permanent contract- of which women

(no.)

236

289

332

-53

-18.3

Enel

Total contracts(no.)

65,124

66,27966,717-1,155-1.7

Enel- of which men(no.)

49,89951,341

52,346-1,442-2.8

Enel- of which women(no.)

15,225

14,93814,371

287

1.9

Enel

2-8

Use of fixed-term contracts and inclusion/
Centre for Labor Training (CFL) of the total

(%)

1.1

1.2

1.3

-0.1

-

Enel

Internship and traineeships

(no.)

799

1,083

883

-284

-26.2

Enel

2-7

Workforce by type of contract andgeographic area(3)Italy(2)(no.)

31,66430,27629,800

1,388

4.6

Italy

Permanent contract(no.)

31,66230,26329,783

1,399

4.6

Italy

Fixed-term contracts

(no.)

2

13

17

-11

-84.6

Italy

Iberia

(no.)

9,643

9,518

9,781

125

1.3

IberiaPermanent contract

(no.)

9,423

9,281

9,531

142

1.5

IberiaFixed-term contracts

(no.)

220

237

250

-17

-7.2

IberiaSustainability Statement

477

GRI/
EUSS

2-7

KPI

UM

December2022

December
2021

December2020 2022-2021

Latin America(no.)

17,361

18,763

19,838Permanent contract(no.)

16,89318,304

Fixed-term contracts

(no.)

468

Europe(4)

(no.)

%

Scope

-1,402-7.5

Latin
America

19,374-1,411-7.7

Latin
America

459

464

9

2.0

Latin
America

3,532

4,994

4,966

-1,462-29.3

EuropePermanent contract

(no.)

3,495

4,883

4,817

-1,388-28.4

EuropeFixed-term contracts

(no.)

37

111

149

-74

-66.7

EuropeNorth America

(no.)

2,100

1,914

1,639

186

9.7

North
America

Permanent contract

(no.)

2,086

1,909

1,627

177

9.3

North
America

Fixed-term contracts

(no.)

14

5

12

9

-

North
America

Sub-Saharan Africa and Asia

(no.)

824

814

693

10

1.2

SubSaharanAfrica andAsia

Permanent contract

(no.)

818

813

690

5

0.6

Africa, Asiaand Oceania

Fixed-term contracts

(no.)

6

1

3

5

-

Africa, Asiaand Oceania

Full-time contracts(no.)

64,61965,68966,074-1,070-1.6

Enel- of which men(no.)

49,801

51,20952,208-1,408-2.7

Enel- of which women(no.)

14,81814,48013,866

338

2.3

Enel

Part-time contracts

(no.)

505

590

643

-85

-14.4

Enel

Workforce by type of contract and gender- of which men

(no.)

98

130

138

-32

-24.6

Enel

- of which women

(no.)

407

460

505

-53

-11.5

Enel

Part Time + Full Time

(no.)

65,124

66,27966,717-1,155-1.7

EnelPercentage of part-time

(%)

0.8

0.9

1.0

-0.1

-

Enel

(%)

48.3

45.4

44.4

2.9

-

Enel

Workforce by nationality
DJSI
3.2.3

Total workforce
Italy

DJSI
3.2.3

Brazil

(%)

11.5

13.5

15.0

-2.0

-

Enel

Spain

(%)

14.4

14.0

14.4

0.4

-

Enel

Argentina

(%)

6.0

6.0

5.9

-

-

Enel

Romania

(%)

5.0

4.9

4.8

0.1

-

Enel

Colombia

(%)

3.6

3.4

3.3

0.2

-

Enel

Chile

(%)

3.2

3.2

3.3

-

-

Enel

Other

(%)

8.0

9.4

8.8

-1.4

-

Enel

(%)

49

47.8

47.7

0.8

-

Enel

Workforce in management positions(manager and middle manager)
Italy
Brazil

(%)

4.8

5.1

4.8

-0.2

-

Enel

Spain

(%)

29.7

29.0

29.3

0.6

-

Enel

Argentina

(%)

2.1

2.1

2.2

-

-

Enel

Romania

(%)

2.7

2.7

2.7

-

-

Enel

Colombia

(%)

2.2

2.1

2.1

0.1

-

Enel

Chile

(%)

2.7

2.9

2.9

-0.2

-

Enel

Other

(%)

7.1

8.3

8.3

-1.2

-

Enel

401-1 CHANGES TO SIZE

478

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

KPI

3

Materiality analysis

UM

December2022

December
2021

4

Our performance5

December2020 2022-2021

Appendix%

Scope

New hires
New hires by gender

(no.)

6,412

5,401

3,131

1,011

18.7

Enel

Hiring rate(8)

(%)

9.8

8.1

4.7

1.7

-

Enel

- men

(no.)

4,356

3,764

2,203

592

15.7

Enel

(%)

62.4

69.7

70.4

-7.3

-

Enel

(no.)

2,056

1,637

928

419

25.6

Enel

(%)

32.5

30.3

29.6

2.2

-

Enel

- women
New hires by age range

(no.)

6,412

5,401

3,131

1,011

18.7

Enel

up to 30

(no.)

3,359

2,579

1,363

780

30.2

Enel

(%)

54.2

47.8

43.5

6.4

-

Enel

from 30 to 50

(no.)

2,905

2,653

1,700

252

9.5

Enel

(%)

42.5

49.1

54.3

-6.6

-

Enel

over 50

(no.)

148

169

68

-21

-12.4

Enel

(%)

2.4

3.1

2.2

-0.7

-

Enel

Italy(2)

(no.)

2,866

1,697

1,044

1,169

68.9

Italy

(%)

9.1

5.6

33.3

3.5

-

Italy

Iberia

(no.)

741

694

257

47

6.8

Iberia

(%)

7.7

7.3

8.2

0.4

-

IberiaEurope(4)

(no.)

443

439

280

4

0.9

Europe

(%)

12.5

8.8

8.9

3.7

-

Europe

(no.)

614

636

362

-22

-3.5

North
America

(%)

29.2

33.2

11.6

-4.0

-

North
America

(no.)

1,542

1,704

991

-162

-9.5

Latin
America

(%)

8.9

9.1

31.7

-0.2

-

Latin
America

New hires by geographic area

North America

Latin America

Sub-Saharan Africa and Asia

(no.)

206

232

197

-26

-11.2

SubSaharanAfrica and
Asia

(%)

25.0

28.5

6.3

-3.5

-

SubSaharanAfrica andAsia

Open positions filled by internal candidates

(%)

9.4

9.3

14.0

0.1

-

Enel

Effect of the changes in scope(no.)-3,15323-971-3,176

-

Enel

(no.)

4,414

5,862

3,696

-1,448

-24.7

Enel

Terminations
Total terminations
CausesVoluntary terminations

(no.)

1,477

1,271

717

206

16.2

Enel

Incentive based terminations

(no.)

1,853

3,532

817

-1,679

-47.5

Enel

Retirements and other

(no.)

1,084

1,060

2,162

24

2.3

Enel

(no.)

3,391

4,779

3,002

-1,388

-29.0

Enel

(%)

76.8

81.5

81.2

-4.7

-

Enel

(no.)

1,023

1,083

694

-60

-5.5

Enel

(%)

23.2

18.5

18.8

4.7

-

Enel

(no.)

4,414

5,862

3,696

-1,448

-24.7

Enel

Terminations by gender- men- womenTerminations by age range

Sustainability Statement

479

GRI/
EUSS

KPI

UM

December2022

December
2021

December2020 2022-2021

up to 30

(no.)

655

702

(%)

14.9

12.0

14.8

2.9

-

Enel

from 30 to 50

(no.)

1,759

2,275

1,273

-516

-22.7

Enel

(%)

39.8

38.8

34.4

1.0

-

Enel

over 50

(no.)

2,001

2,885

1,876

-884

-30.6

Enel

(%)

46.0

49.2

50.8

-3.2

-

Enel

(no.)

1,224

1,249

1,011

-25

-2.0

Italy

(%)

27.7

4.1

27.4

23.6

-

Italy

(no.)

578

956

599

-378

-39.5

Iberia

(%)

13.1

10.0

16.2

3.1

-

Iberia

(no.)

454

406

299

48

11.8

Europe

(%)

10.3

8.1

8.1

2.2

-

Europe

(no.)

428

361

313

67

18.6

North
America

(%)

9.7

18.9

8.5

-9.2

-

North
America

(no.)

1,534

2,779

1,393

-1,245

-44.8

Latin
America

(%)

34.8

14.8

37.7

20.0

-

Latin
America

(no.)

196

111

81

85

76.6

SubSaharanAfrica and
Asia

(%)

4.4

13.6

2.2

-9.2

-

Africa, Asiaand Oceania

(%)

6.8

8.8

5.6

-2.0

-

Enel

- men

(%)

6.8

9.5

5.7

-2.7

-

Enel

- women

(%)

6.7

7.5

4.8

-0.8

-

Enel

up to 30

(%)

1.0

9.0

7.5

-8.0

-

Enel

from 30 to 50

(%)

2.7

6.0

3.5

-3.3

-

Enel

547

-47

%

Scope

-6.7

Enel

Terminations by Country
Italy(2)IberiaEurope(3)North America

Latin America

Sub-Saharan Africa and Asia

Turnover rate(9)Turnover rate by genderTurnover rate by age range

over 50

(%)

3.1

14.1

8.1

-11.0

-

Enel

Voluntary turnover rate

(%)

2.3

1.9

1.1

0.8

-

Enel

- men

(%)

1.6

1.3

0.8

0.3

-

Enel

- women

(%)

0.7

0.6

0.3

0.3

-

Enel

(%)

0.6

0.5

0.2

0.1

-

Enel

Voluntary turnover rate by gender

Voluntary turnover rate by age range
up to 30
from 30 to 50

(%)

1.5

1.3

0.7

0.2

-

Enel

over 50

(%)

0.1

0.1

0.2

-

-

Enel

VALORIZATION
404-3 Assessment(10)480

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

December2020 2022-2021

Appendix

KPI

UM

December2022

December
2021

Dissemination of assessment

(%)

87.0

89.2

93.8

- men

(%)

86.4

88.6

94.0

-2.2

-

Enel

- women

(%)

89.0

91.4

93.0

-2.4

-

Enel

(%)

97.3

97.2

97.8

0.1

-

Enel

-2.2

%

Scope

-

Enel

Dissemination of assessment
Manager
Middle Manager

(%)

92.6

93.2

93.7

-0.6

-

Enel

White collar

(%)

88.2

88.6

93.4

-0.4

-

Enel

Blue collar

(%)

79.3

79.1

94.4

0.2

-

Enel

Rewarding404-1

Dissemination of incentives

(%)

41.5

43.1

43.6

-1.6

-

Enel

Employees with individual incentives(no.)

27,05028,56822,546-1,518-5.3

Enel- of whom Managers

(no.)

1,349

1,351

1,006

-2

-0.1

Enel

- of whom Middle Managers

(no.)

8,224

7,915

3,750

309

3.9

Enel

- of whom White-collar e Blue collar(no.)

17,477

19,308

17,790

1,831

-9.5

Enel

Percentage of sustainability objectives
assigned

(%)

25.3

30.0

n.d.

-0.7

-

Enel

(h/percapita)

47.4

44.6

40.9

2.8

6.3

Enel

- men

(h/percapita)

48.3

46.5

40.4

1.8

3.9

Enel

- women(h/percapita)

44.3

37.7

42.7

6.6

17.5

Enel

Manager(h/percapita)

44.1

29.6

31.9

14.5

49.0

Enel

Middle Manager(h/percapita)

47.4

41.9

41.4

5.5

13.1

Enel

White collar(h/percapita)

43.0

38.4

35.7

4.6

12.0

Enel

Blue collar(h/percapita)

57.1

60.3

51.4

-3.2

-5.3

Enel

Total training hours (distance learning +classroom)(,000 h)

3,151

2,943

2,744

208

7.1

Enel

Training hours distance learning(,000 h)

1,943

513

448

1,430

-

Enel

Percentage of sustainability objectives
assigned
Training hours by employees
by gender:

by level:- Training hours distance learning(,000 h)

344

204

94

139

68.2

Enel

- for specialist training(,000 h)

1,599

309

354

1,290

-

Enel

Training hours in the classroom(,000 h)

1,208

2,430

2,296

-1,222

-50.3

Enel

- for managerial training(,000 h)

57

189

170

-132

-69.9

Enel

- for specialist training(,000 h)

1,151

2,241

2,126

-1,090

-48.6

Enel

Incidence of distance learning training
Total training hours by level

(%)

61.7

17.4

16.3

44.3

-

Enel

(,000 h)

3,151

2,943

2,744

208

7.1

Enel

Manager(,000 h)

61

41

45

20

49.1

Enel

Middle Manager(,000 h)

593

494

466

99

20.0

Enel

White collar(,000 h)

1,532

1,362

1,287

170

12.5

Enel

Blue collar(,000 h)

964

1,045

946

-81

-7.8

Enel

(h/procapite)

27.9

26.7

21.7

-13.3

-49.8

Enel

Dissemination of sustainability
Training per capita on sustainability

Sustainability Statement

481

GRI/
EUSS

UM

December2022

December
2021(,000 h)

1,853

1,763

1,457

Digitalization(,000 h)

431

410

342

21

5.2

Enel

Environment(,000 h)

28

58

48

-30

-51.8

Enel

Safety(,000 h)

1,244

1,188

979

56

4.7

Enel

Human rights(,000 h)

7

7

5

-

-

Enel

Other(11)(,000 h)

128

88

61

40

44.8

Enel

Code of Ethics(,000 h)

15

11

22

4

34.8

Enel

(no.)

30,566

20,074

26,66010,490

52.3

Enel

(%)

46.9

30.3

40.0

16.6

-

Enel

(no.)

17,882

10,443

14,224

7,439

71.2

Italy

KPI
Training per capita on sustainability

205-2

Training on anti-corruption policies
and procedures communication

December2020 2022-2021
67

%

Scope

3.8

Enel

Training on anti-corruption policies
and procedures communication bygeographic area
Italy
Italy

(%)

56.5

34.5

47.7

22.0

-

Italy

Iberia

(no.)

4,922

3,564

1,977

1,358

38.1

IberiaIberia

(%)

51.0

37.4

20.2

13.6

-

IberiaLatin America

(no.)

5,532

3,339

5,326

2,193

65.7

Latin
America

Latin America

(%)

31.9

17.8

26.8

14.1

-

Latin
America

Europe

(no.)

426

1,050

4,006

-624

-59.4

EuropeEurope

(%)

12.1

21.0

80.7

-8.9

-

EuropeAsia e Oceania

(no.)

122

225

197

-103

-45.8

Asia eOceania

Asia e Oceania

(%)

14.8

27.7

28.4

-12.9

-

Asia eOceania

North America

(no.)

1,682

1,453

930

229

15.8

North
America

North America

(%)

80.1

75.9

56.7

4.2

-

North
America

Training on anti-corruption policies andprocedures communication by level
Manager

(no.)

753

487

407

266

54.6

Enel

(%)

55.1

35.4

29.1

19.7

-

Enel

(no.)

6,133

4,588

3,967

1545

33.7

Enel

(%)

48.5

37.5

34.2

11.0

-

Enel

(no.)

16,106

11,251

14,856

4855

43.2

Enel

(%)

46.5

31.6

41.4

14.9

-

Enel

(no.)

7,652

3,747

7,430

3905

-

Enel

(%)

46.4

21.9

41.6

24.5

-

Enel

Employees covered by pension plan
benefit plan)(no.)

52,49753,86253,715-1,365-2.5

Enel

Employees covered by pension plan
benefit plan)

(%)

80.6

81.3

80.5

-0.7

-

Enel

Manager

(%)

4.4

4.5

3.6

-0.1

-

Enel

Middle Manager

(%)

5.4

5.0

4.9

0.4

-

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

482

White collar

(%)

7.8

7.1

6.6

0.7

-

Enel

Blue collar

(%)

5.1

3.8

4.4

1.3

-

Enel

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

KPI

UM

December2022

December
2021

Average

(%)

6.5

5.7

5.6

(%)

21.8

20.8

Our performance5

December2020 2022-2021

Appendix

%

Scope

0.8

-

Enel

17.7

1.0

-

Enel

Pension within 10 years - Enel
Manager
Middle Manager

(%)

18.3

17.3

17.0

1.0

-

Enel

White collar

(%)

24.0

22.9

21.7

1.1

-

Enel

Blue collar

(%)

14.8

12.6

11.0

2.2

-

Enel

Average

(%)

20.5

19.1

17.9

1.4

-

Enel

Employees entitled to parental leave bygender

(no.)

2,756

2,605

2,734

151

5.8

Enel

Men

(no.)

1,845

1,694

1,741

151

8.9

Enel

401-3 MATERNITY/PATERNITY-PARENTAL LEAVE

Women

(no.)

911

911

993

-

-

Enel

Parental leave by gender

(no.)

2,604

2,605

2,734

-1

-

Enel

Men

(no.)

1,725

1,694

1,741

31

1.8

Enel

Women

(no.)

879

911

993

-32

-3.5

Enel

Return to work rate of employees that tookparental leave by gender

(%)

95.7

95.0

95.6

0.7

-

Enel

Men

(%)

95.9

96.3

96.1

-0.4

-

Enel

Women

(%)

95.4

92.7

94.7

2.7

-

Enel

Retention rate by gender(12)

(%)

89.7

97.0

96.3

-7.3

-

Enel

Men

(%)

91.2

95.3

97.2

-4.1

-

Enel

Women

(%)

87.0

100

97.7

-13.2

-

Enel

(%)

39.3

30.6

29.4

8.7

-

Enel

(%)

104.7

104.8

108.1

-0.1

-

Enel

Manager

(%)

83.9

84.6

86.7

-0.7

-

Enel

Middle Manager

(%)

92.8

94.2

96.5

-1.4

-

Enel

EQUAL OPPORTUNITIESLevel of female staff(13)Ratio of basic salary/remuneration
405-2
Women/Men
Ratio of basic salary Women/Men

White collar

(%)

88.8

88.4

90.2

0.4

-

Enel

Blue collar

(%)

125.0

111.2

77.0

13.8

-

Enel

Ratio of remuneration Women/Men

(%)

105.4

105.1

108.3

0.3

-

Enel

Manager

(%)

80.7

81.1

83.3

-0.4

-

Enel

Middle Manager

(%)

91.9

93.2

95.7

-1.3

-

Enel

White collar

(%)

89.3

88.4

90.3

0.9

-

Enel

Blue collar

(%)

125.4

112.0

77.8

13.4

-

Enel

(no.)

2,129

2,152

2,199

-23

-1.1

Enel

405-1 Disability
Disabled or belonging to protectedcategories by gender- of which men

(no.)

1,471

1,480

1,532

-9

-0.6

Enel

- of which women

(no.)

658

672

667

-14

-2.1

Enel

Incidence of disabled or belonging toprotected categories by gender

(%)

3.3

3.2

3.3

0.1

-

Enel

- of which men

(%)

69.1

68.8

2.3

0.3

-

Enel

- of which women

(%)

30.9

31.2

1.0

-0.3

-

Enel

Disabled or belonging to protectedcategories by age range

(no.)

2,129

2,152

2,199

-23

-1.1

Enel

- up to 30

(no.)

40

44

49

-4

-9.1

Enel

- from 30 to 50

(no.)

982

985

933

-3

-0.3

Enel

- over 50

(no.)

1,107

1,123

1,217

-16

-1.4

Enel

Incidence of disabled or belonging toprotected categories by age range

(%)

3.3

3.2

3.3

0.1

-

Enel

Sustainability Statement

483

GRI/
EUSS

KPI

UM

December2022

December
2021

December2020 2022-2021- up to 30

(%)

0.5

0.1

0.1

0.4

%

Scope

-

Enel

- from 30 to 50

(%)

2.7

1.5

1.4

1.2

-

Enel

- over 50

(%)

5.6

1.7

1.8

3.9

-

Enel

(no.)

4

3

3

1

33.3

Enel

Disabled or belonging toprotected categories by level
Manager
Middle Manager

(no.)

201

167

157

34

20.4

Enel

White collar

(no.)

1,766

1,814

1,880

-48

-2.6

Enel

Blue collar

(no.)

158

168

159

-10

-6.0

Enel

(%)

0.3

-

-

-

-

Enel

Incidence of disabled or belonging toprotected categories by level
Manager
Middle Manager

(%)

1.6

0.3

0.2

1

-

Enel

White collar

(%)

5.1

2.7

2.8

2

-

Enel

Blue collar

(%)

1.0

0.3

0.2

1

-

Enel

Actual users of smartworking(no.)

36,47338,40336,334-1,930-5.0

Enel

Potential users of smartworking(no.)

36,707

39,11537,305-2,408-6.2

Enel

Incidence of Smartworking

(%)

99.4

98.2

97.4

1.2

-

Enel

(%)

46.9

48.9

50.7

-2.0

-

Enel

Total Enel

(no.)

59,25659,58260,571

-326

-0.5

Enel

(%)

91.0

89.9

90.8

1.1

-

Enel

Italy

(no.)

31,64330,14829,710

1,495

5.0

Italy

(%)

99.9

99.6

99.7

0.3

-

Italy

(no.)

8,213

8,687

8,685

-474

-5.5

Iberia

(%)

85.2

91.3

88.8

-2.4

-

Iberia

(no.)

3,252

4,391

4,380

-1,139-25.9

Europe

(%)

92.1

87.9

88.2

4.2

-

Europe(no.)

16,08916,317

17,771

-228

-1.4

Latin
America

(%)

92.7

87.0

89.6

5.7

-

Latin
America

(no.)

59

39

25

20

51.3

North
America

(%)

2.8

2.0

-

0.8

-

North
America

(no.)

-

-

-

-

-

SubSaharanAfrica and
Asia

(%)

-

-

-

-

-

SubSaharanAfrica andAsia

Total proceedings (14)

(no.)

7,786

9,384

9,028.0-1,598

-17.0

Enel

Incidence of proceedings as defendant

(%)

98.7

98.9

98.9

-0.2

-

Enel

Smartworking

2-30

RELATIONS WITH UNIONS
Union membership in the electricity sector
Employees covered by collective
agreements, by geographic area

IberiaEuropeLatin America

North America

Sub-Saharan Africa and Asia

Dispute with employees(1)

In 2022, there was a change in scope due to the sale of the companies: Teploprogress, LLC Enel Rus Wind Azov, LLC Enel Rus Wind Kola and Enel Russia in
Russia; Enel Geração Fortaleza SA, CELG Distribuição SA CE and Gridspertise Latam SA in Brazil; Enel Transmisión SA in Chile; Gridspertise Iberia SL in Spain;
Paytipper SpA, CityPoste Payment SpA, PayTipper Network Srl, FlagPay Srl and Gridspertise Srl in Italy. There was also the purchase of the companies Melita

484

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Italy Srl and Enel Hydro Appennino Centrale Srl in Italy.
(2) Include Branch Enel Trading (Singapore) and the Dutch financial companies.
(3) Includes International Endesa BV (IEBV).
(4) The following Countries are considered within this scope: Romania, Russia, Greece, France, Germany, Turkey, United Kingdom, Ireland, Norway, Poland andSwitzerland.
(5) Countries considered within the scope: USA, Canada and Mexico.
(6) The following countries are considered within the scope: India, Kenya, South Africa, Zambia, Australia, Morocco, Singapore, Japan, Taiwan, New Zealand,
China and South Korea, Vietnam.
(7) The 2021 and 2020 figures include a more specific determination.
(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 Headcounts and not just those eligible by process for thedenominator.
(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) Classification index = female managers + middle managers/total managers + middle managers.
(14) The 2022, 2021 and 2020 figures only includes the procedures relating to Enel and retired staff, and not the procedures relating to third parties.

Sustainability Statement

485

Sustainable supply chain
GRI/
EUSS

UM

December2022

December2021

Number of new contracts signed during
the year(no.)

13,671

12,272

13,051

Number of suppliers with which a newcontract was signed in the year

(no.)

6,213

6,066

Workforce of contracting andsubcontracting companies(1)(no.)

172,854(,000 g)36,118

KPI

December2020 2022-2021

%

Scope

1,399

11.4

Enel

6,051

147

2.4

Enel

170,397

157,940

2,433

1.4

Enel

37,49334,747-1,375-3.7

Enel

NATURE OF SUPPLIERS

Days worked by employees of contractors
and subcontractors
Construction activity(,000 g)10,217

14,49910,519-4,282

-29.5

Enel

Operating and maintenance activity(,000 g)26,662

22,99324,228

3,669

16

Enel

- of which operating activity(,000 g)

6,340

6,898

7,268

-558

-8.1

Enel

- of which maintenance activity(,000 g)12,836

16,095

16,959-3,259

-20.2

Enel

204-1 Local suppliers of materials and services(2)Local suppliers with contracts > 1 mil euros

(no.)

1,684

1,566

1,326

118

7.5

Enel

Foreign suppliers with contracts > 1 mil euros

(no.)

225

165

182

21

12.7

Enel

Spending on local suppliers with contracts >1 mil euros(mil euros)

17,411

14,484

10,130

2,927

20.2

Enel

Spending on foreign suppliers with
contracts > 1 mil euros(mil euros)

2,837

2,381

1,657

456

19.2

Enel

Concentration of spending on local suppliers(3)

(%)

86%

86%

86%

-

-

Enel

Concentration of spending on foreign
suppliers(3)

(%)

14%

14%

14%

-

-

Enel

Purchases of materials and services(mil euros)

22,09917,03014,070

5,069

29.8

Enel

Supplies(mil euros)

7,820

6,510

5,480

1,310

20.1

Enel

Works

(mil euros)

4,492

3,776

3,625

716

18.9

Enel

Services(mil euros)

9,788

6,744

4,965

3,044

45.1

Enel

Active qualified companies(4)

(no.)

9,427

6,717

4,821

2,710

40.3

Enel

Online tenders as percentage of all tenders

(%)

95.4

83.5

74.8

11.9

-

Enel

Online purchases as percentage of allpurchases

(%)

91.8

70.3

67.5

21.5

-

Enel

Use of prescription

(%)

32.4

16.0

19.1

16.4

-

Enel

Purchases and fuelManagement instruments

Disputes involving suppliers

301-1

Total proceedings

(no.)

508

785

703

-277

-35.3

Enel

Incidence of proceedings as defendant

(%)

63.9

68.7

69.3

-4.8

-

Enel

Fuel consumption for thermoelectric
production
from non-renewable sources
Coal(,000 t)

8,522

5,958

5,893

2,564

43.0

Enel

Lignite(,000 t)

-

-

105

-

-

Enel

Fuel oil(,000 t)

889

863

975

26

3.0

Enel

Natural gas

3

(Mm )

13,214

15,682

13,075-2,468

-15.7

Enel

Gas oil(,000 t)

1,262

1,033

906

229

22.2

Enel

Biomass and waste for thermoelectric
production(,000 t)

65

71

89

-6

-8.5

Enel

Biogas

(Mm3)

1.2

0.7

0.1

0.5

71.4

Enel

Geothermal steam used for electricity
production(,000 t)49,947350,160

350,090-300,213

-85.7

Enel

from renewable resources

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

Calculated in FTE (Full Time Equivalent).
“Local suppliers” are defined as suppliers with their registered office in the country where the supply contract was issued.
The figure for 2021 reflects a more accurate calculation.
The 2021 and 2020 figures changed due to a more specific reclassification between global qualifications and local qualifications.

486

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Engaging communities
GRI/
EUSS

KPI

UM

December December December
2022
2021
2020

20222021

%

Scope

47.8

Enel

203-1 INITIATIVES IN FAVOR OF THE COMMUNITY
Contributions to communities - LBG method(mil euros)

Charitable donations(1)

14.5

9.8

56.1

4.7

(mil euros)

77.2

56.2

56.1

21.0

37.4

Enel

Commercial initiatives with a social impact(mil euros)

28.3

25.2

17.5

3.1

12.4

Enel

Total (expense + investments)(mil euros)

120.0

91.1

129.7

28.8

31.6

Enel

Cash contribution(mil euros)

103.4

81.7

119.4

21.7

26.6

Enel

Employee volunteerism(mil euros)

0.8

0.4

0.1

0.4

91.0

Enel

Investments in communities(2)

Initiatives in favor of communities bytype of contribution

EU25

Donations in kind (goods/services/projects)(mil euros)

7.5

2.5

4.9

5.0

-

Enel

Management overheads(mil euros)

8.3

6.6

5.3

1.7

20.5

Enel

Total

(mil euros)

120.0

91.1

129.7

28.8

31.6

Enel

Severe and fatal third-party injuries

(no.)

168

250

221

-82

-32.8

Enel

- fatal

(no.)

67

77

89

-10

-13.0

Enel

- severe

(no.)

101

173

132

-72

-41.6

Enel

SAFETY FOR COMMUNITIESThird-party injuries

Third-party injuries by type
Electricity injuries

(%)

93.6

92.0

89.6

1.6

-

Enel

Road accidents against Group infrastructure

(%)

3.5

5.2

6.3

-1.7

-

Enel

Accidents for other reasons (slipping, fallingfrom height, crash-crush-cut)

(%)

2.9

2.8

4.1

0.1

-

Enel

Construction activities near power lines

(%)

52.0

64.8

55.6

-12.8

-

Enel

Attempted theft

(%)

25.4

12.8

9.6

12.6

-

Enel

Other(3)

(%)

28.9

14.4

34.8

14.5

-

Enel

Causes of electricity accident(1) The increase in donations with respect to 2021 is due mainly to the activities carried out in Brazil and Chile.
(2) The increase in community investments with respect to 2021 is due mainly to the activities carried out in Brazil, Chile and Colombia.
(3) Mainly due to accidental contact with metal wires, agricultural work and plant cutting activities, among other things.

Sustainability Statement487

Innovation
GRI/
EUSS
DMA
EU

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Research and innovation(mil euros)

104.5

130.4

110.5

-25.9

-19.9

Enel

Research personnel

(no.)

576.0

558.0

520.0

18.0

3.2

Enel

End users (final)(no.)

72,655,170

75,178,777

74,303,931-2,523,607

-3.4

Enel

Active clients with smart meters(2)(no.) 45,824,963

45,169,318 44,292,794

655,645

1.5

Enel

3.3

-

Enel

Technological innovation(1)Active clients with smart meters/End users(final)
(1)

%

63.1

59.8

60.0

Around 40% of investment in Innovation concerned the Global Power Generation Line, while 26% was for the Infrastructure and Networks Line. The rest
concerned the other Group Business Lines.
(2) 2022 share for smart meter 2.0, amounting to 5.4 million.

488

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Occupational health and safety
GRI/
EUSS

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

(no.)

1

3

1

-2

-66.7

Enel

Italy

(no.)

-

2

-

-2

-100.0

Italy

Iberia

(no.)

-

-

-

-

-

IberiaLatin America

(no.)

-

1

1

-1

-100.0Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

1

-

-

1

100.0

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

0.008

0.024

0.008

-0.016

-66.7

Enel

KPI
SAFETY
Enel people

403-9

Number of fatal accidents andfrequency rate(1)Number of fatal accidents
Fatal accidents by geographical area

Fatal accidents frequency rate
Fatal accidents frequency rate bygeographical area
Italy

(i)

-

0.035

-

-0.035-100.0

Italy

Iberia

(i)

-

-

-

-

-

IberiaLatin America

(i)

-

0.028

0.026

-0.028-100.0Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.129

-

-

0.129

100.0

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

-

1

-

-1

-100.0

Enel

Italy

(no.)

-

-

-

-

-

Italy

Iberia

(no.)

-

-

-

-

-

IberiaLatin America

(no.)

-

1

-

-1

-100.0Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

-

0.008

-

-0.008-100.0

Enel

Italy

(i)

-

-

-

-

-

Italy

Iberia

(i)

-

-

-

-

-

IberiaNumber of Life Changing Accidents (LCA andfrequency rate)(2)
Number of Life Changing Accidents (LCA)
Number of Life Changing Accidents bygeographical area

Life Changing Accidents frequency
rate (LCA FR)
Life Changing Accidents frequency
rate by geographical area

Sustainability Statement

489

GRI/
EUSS

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Latin America

(i)

-

0.028

-

-0.028-100.0Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

7

8

10

-1

-12.5

Enel

Italy

(no.)

7

5

4

2

40.0

Italy

Iberia

(no.)

-

1

1

-1

-100.0IberiaLatin America

(no.)

-

1

3

-1

-100.0Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

1

2

-1

-100.0Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

0.057

0.065

0.080

-0.008

-12.3

Enel

KPI

High Potential Accident (HPO) andfrequency rate(3)High Potential Accident (HPO)
Number of High Potential accidents (HPO)
by geographical area

High Potential accidents frequency
rate (HPO FR)High Potential accidents frequency rateby geographical area
Italy

(i)

0.120

0.089

0.072

0.031

34.8

Italy

Iberia

(i)

-

0.061

0.059

-0.061-100.0IberiaLatin America

(i)

-

0.028

0.079

-0.028-100.0Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

-

0.106

0.196

-0.106-100.0Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

59

61

72

-2

-3.3

Enel

Italy

(no.)

37

41

41

-4

-9.8

Italy

Iberia

(no.)

2

2

2

-

-

IberiaLatin America

(no.)

18

18

25

-

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

2

-

4

2

-

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

0.477

0.494

0.575

-0.017-3.4

Enel

Number of accidents with absence of work
greater than 3 days and frequency rate
Number of accidents with absence from work
for more than 3 days
Number of accidents with absence from work
for more than 3 days by geographical area

Accidents with absence from work formore than 3 days frequency rate

490

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

AppendixUM

December2022

December
2021

December
2020

2022-2021

%

Scope

Italy

(i)

0.632

0.726

0.734

-0.094

-12.9

Italy

Iberia

(i)

0.121

0.122

0.117

-0.001-0.8

IberiaLatin America

(i)

0.508

0.498

0.662

0.010

2.0

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.258

-

0.393

0.258

-

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

69

83

75

-14

-16.9

Enel

KPI
Accidents with absence from work formore than 3 days frequency rate bygeographical area

Number of Lost Time Injury (LTI)
and frequency rate(4)Number of LTI
Accidents with absence from work bygeographical area
Italy

(no.)

40

53

42

-13

-24.5

Italy

Iberia

(no.)

2

2

2

-

-

IberiaLatin America

(no.)

25

28

26

-3

-10.7

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

2

1

5

1

100.0

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

0.56

0.68

0.60

-0.121

-17.8

Enel

Accidents with absence from work frequency
rate (LTI FR)
Accidents with absence from work frequency
rate by geographical area
Italy

(i)

0.68

0.94

0.75

-0.259

-27.6

Italy

Iberia

(i)

0.12

0.12

0.12

-0.002-1.6

IberiaLatin America

(i)

0.71

0.78

0.69

-0.065-8.4

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

0.26

0.11

0.49

0.154

145.3

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania(no.)

123,624,403

123,421,139

125,263,914

203,264

0.2

Enel

(no.)

153

157

196

-4

-2.5

Enel

Worked hours
Number of Total Recordable Injury (TRI)
and frequency rate(5)Number of TRI by geographical area
Italy

(no.)

41

57

51

-16

-28.1

Italy

Iberia

(no.)

24

26

24

-2

-7.7

IberiaLatin America

(no.)

51

50

97

1

2.0

Latin
America

North America

(no.)

30

20

9

10

50.0

North
America

Europe

(no.)

6

3

9

3

100.0

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

1

1

6

-

-

Africa,Asia and
Oceania

Sustainability Statement

491

GRI/
EUSS

KPI
TRI frequency rate by geographical area

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

(i)

1.24

1.27

1.56

-0.032

-2.5

Enel

Italy

(i)

0.70

1.01

0.91

-0.309

-30.6

Italy

Iberia

(i)

1.46

1.58

1.40

-0.120-7.6

IberiaLatin America

(i)

1.44

1.38

2.57

0.057

4.1

Latin
America

North America

(i)

7.78

5.85

2.87

1.928

32.9

North
America

Europe

(i)

0.77

0.32

0.88

0.453

142.9

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

0.64

0.67

4.93

-0.031-4.6

Africa,Asia and
Oceania

(no.)

5

6

8

-1

-16.7

Enel

Italy

(no.)

1

1

1

-

-

Italy

Iberia

(no.)

-

1

1

-1

-100.0IberiaLatin America

(no.)

4

4

6

-

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

(i)

0.016

0.020

0.029

-0.004

-20.0

Enel

403-9 Contractors
Number of fatal accidents andfrequency rate(1)Number of fatal accidents
Fatal accidents by geographical area

Fatal accidents frequency rate
Fatal accidents frequency rate bygeographical area
Italy

(i)

0.018

0.019

0.022

-0.001

-5.3

Italy

Iberia

(i)

-

0.025

0.027

-0.025-100.0IberiaLatin America

(i)

0.021

0.022

0.036

-0.001-4.5

Latin
America

North America

(i)

-

-

-

-

-

Nord
America

Europe

(i)

-

-

-

-

-

EuropeAfrica, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

2

3

-

-1

-33.3

Enel

Italy

(no.)

-

-

-

-

-

Italy

Iberia

(no.)

-

1

-

-1

-100.0IberiaLatin America

(no.)

2

2

-

-

-

Latin
America

North America

(no.)

-

-

-

-

-

North
America

Europe

(no.)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

-

-

-

-

Africa,Asia and
Oceania

Number of Life Changing Accidents(LCA) and frequency rate(2)Number of Life Changing Accidents (LCA)
Number of Life Changing Accidents bygeographical area

492

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

AppendixUM

December2022

December
2021

December
2020

2022-2021

%

Scope

Life Changing Accidents frequency rate (LCA
FR)

(i)

0.007

0.010

-

-0.003

-30.0

Enel

Life Changing Accidents frequency
rate by geographical area

(i)

KPI

Italy

(i)

-

-

-

-

-

Italy

Iberia

(i)

-

0.025

-

-0.025-100.0IberiaLatin America

(i)

0.011

0.011

-

-

-

Latin
America

North America

(i)

-

-

-

-

-

North
America

Europe

(i)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

-

-

-

-

Africa,Asia and
Oceania

(no.)

24

32

40

-8

-25.0

Enel

Italy

(no.)

9

2

9

7

350.0

Italy

Iberia

(no.)

5

9

4

-4

-44.4

IberiaLatin America

(no.)

10

19

27

-9

-47.4

Latin
America

North America

(no.)

-

1

-

-1

-100.0North
America

Europe

(no.)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

-

1

-

-1

-100.0Africa,Asia and
Oceania

(i)

0.079

0.107

0.144

-0.028

-26.2

Enel

Italy

(i)

0.160

0.038

0.194

0.122

321.1

Italy

Iberia

(i)

0.116

0.227

0.108

-0.111-48.9

IberiaLatin America

(i)

0.054

0.105

0.160

-0.051

-48.6

Latin
America

North America

(i)

-

0.158

-

-0.158-100.0North
America

Europe

(i)

-

-

-

-

-

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

-

0.104

-

-0.104-100.0Africa,Asia and
Oceania

(no.)

93

119

115

-26

-21.8

Enel

Number of High Potential accidents (HPO)
and frequency rate(3)Number of High Potential accidents (HPO)
Number of High Potential accidents (HPO) bygeographical area

High Potential accidents frequency rate (HPOFR)
High Potential accidents frequency rate bygeographical area

Number of accidents with absence of work
greater than 3 days and frequency rate
Number of accidents with absence from work
for more than 3 days
Number of accidents with absence from work
for more than 3 days by geographical area
Italy

(no.)

39

37

38

2

5.4

Italy

Iberia

(no.)

17

28

17

-11

-39.3

IberiaLatin America

(no.)

35

49

59

-14

-28.6

Latin
America

North America

(no.)

1

3

1

-2

-66.7

North
America

Sustainability Statement

493

GRI/
EUSS

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Europe

(no.)

-

1

-

-1

-100.0Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

1

1

-

-

-

Africa,Asia and
Oceania

(i)

0.31

0.40

0.41

-0.087

-21.9

Enel

Italy

(i)

0.69

0.71

0.82

-0.015

-2.1

Italy

Iberia

(i)

0.39

0.71

0.46

-0.315-44.7

IberiaLatin America

(i)

0.19

0.27

0.35

-0.081

-29.9

Latin
America

North America

(i)

0.16

0.48

0.16

-0.315

-66.3

North
America

Europe

(i)

-

0.09

-

-0.092-100.0Europe e
Nord Africa

Africa, Asia and Oceania

(i)

0.15

0.10

-

0.046

44.2

Africa,Asia and
Oceania

(no.)

146

191

135

-45

-23.6

Enel

Accidents with absence from work for morethan 3 days frequency rate
Accidents with absence from work for morethan 3 days frequency rate by geographicalarea

Number of Lost Time Injury (LTI)
and frequency rate(4)Number of LTI(5)Accidents with absence from work bygeographical area
Italy

(no.)

47

38

39

9

23.7

Italy

Iberia

(no.)

18

29

18

-11

-37.9

IberiaLatin America(5)

(no.)

76

118

77

-42

-35.6

Latin
America

North America

(no.)

4

3

1

1

33.3

North
America

Europe

(no.)

-

2

-

-2

-100.0EuropeAfrica, Asia and Oceania

(no.)

1

1

-

-

-

Africa,Asia and
Oceania

(i)

0.48

0.64

0.49

-0.157

-24.6

Enel

Italy

(i)

0.84

0.72

0.84

0.116

16.0

Italy

Iberia

(i)

0.42

0.73

0.49

-0.310-42.5

IberiaLatin America

(i)

0.41

0.65

0.46

-0.242

-37.1

Latin
America

North America

(i)

0.64

0.48

0.16

0.165

34.7

North
America

Europe

(i)

-

0.18

-

-0.184-100.0EuropeAfrica, Asia and Oceania

(i)

0.15

0.10

-

0.046

44.2

Africa,Asia and
Oceania

304,222,701 299,940,403

278,069,115

4,282,298

1.4

Enel

1,055

1,112

-246

-23.3

Enel

Accidents with absence from work frequency
rate (LTI FR)
Accidents with absence from work frequency
rate by geographical area

Worked hours(no.)

Number of Total Recordable Injury (TRI)
and frequency rate(6)Numero di Total Recordable Injury(5)

(no.)

809

Number of TRI by geographical area

494

Italy

(no.)

50

38

45

12

31.6

Italy

Iberia

(no.)

107

109

75

-2

-1.8

IberiaSustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

KPI

UM

December2022

December
2021

December
2020

2022-2021

%

Scope

Latin America(5)

(no.)

534

711

861

-177

-24.9

Latin
America

North America

(no.)

105

164

112

-59

-36.0

North
America

Europe

(no.)

2

7

6

-5

-71.4

Europe e
Nord Africa

Africa, Asia and Oceania

(no.)

11

26

13

-15

-57.7

Africa,Asia and
Oceania

(i)

2.66

3.52

4.00

-0.857

-24.4

Enel

Italy

(i)

0.89

0.72

0.97

0.166

22.9

Italy

Iberia

(i)

2.48

2.75

2.02

-0.265-9.7

IberiaLatin America(5)

(i)

2.86

3.93

5.11

-1.068

-27.2

Latin
America

North America

(i)

16.77

25.95

18.15

-9.181

-35.4

North
America

Europe

(i)

0.38

0.64

0.42

-0.264-41.0

Europe e
Nord Africa

Africa, Asia and Oceania

(i)

1.63

2.71

2.24

-1.083-39.9

Africa,Asia and
Oceania

TRI frequency rate
TRI frequency rate(1) All Frequency Rates (FRs) 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 (HPOs) are injuries that, given their dynamics, have the potential to cause a Life-Changing or fatal event.
(4) Lost Time Injury (LTI) includes all the accident events that have resulted in at least one day of absence from work excluding the day the event occurred.
(5) The 2021 figures changed due to a reclassification of an event from the contractor to Enel.
(6) Total Recordable Injuries include fatalities, LCAs, LTIs and all other injuries that have required medical treatment.

Sustainability Statement

495

Sound governance
GRI/
EUSS

KPI

2-1

SHAREHOLDERS

UM

December2022

December
2021

December2020 2022-2021

%

Scope

Composition of shareholdings
Investors(1)Ministry of Economy and Finance

(%)

23.6

23.6

23.6

-

-

Enel SpA

Institutional investors

(%)

56.7

59.4

62.3

-2.7

-

Enel SpA

Retail shareholders

(%)

19.7

17.0

14.1

2.7

-

Enel SpA

Location of institutional investors
Italy

(%)

7.3

6.7

6.7

0.6

-

Enel SpA

UK

(%)

14.2

12.1

13.3

2.1

-

Enel SpARest of Europe

(%)

27.3

29.0

27.2

-1.7

-

Enel SpANorth America

(%)

43.0

44.8

46.4

-1.8

-

Enel SpARest of the world

(%)

8.2

7.4

6.4

0.8

-

Enel SpA

Concentration index (Top 50)

(%)

37.2

39.7

42.3

-2.5

-

Enel SpA

(%)

69.6

70.1

71.2

-0.5

-

Enel SpA

Investment style of institutional investors
Long Only
Index

(%)

13.3

13.5

12.7

-0.2

-

Enel SpA

Hedge

(%)

0.2

0.4

0.3

-0.2

-

Enel SpA

Other

(%)

16.2

16.0

15.8

0.2

-

Enel SpA

Presence of SRI

(no.)

245

252

244

-7

-2.8

Enel SpA

Enel shares held by SRI funds

(mil)

1,510

1,484

1,482

26

1.8

Enel SpA

Weight of SRI funds in institutional
shareholdings(2)

(%)

26.2

24.6

23.4

1.6

-

Enel SpA

(%)

16.4

16.7

14.5

-0.3

-

Enel SpASocially Responsible Investors (SRI)

Location of SRI investors(3)
Italy
UK

(%)

11.9

9.7

11.7

2.2

-

Enel SpARest of Europe

(%)

41.3

43.6

40.9

-2.3

-

Enel SpANorth America

(%)

24.4

26.0

26.6

-1.6

-

Enel SpARest of the world

(%)

6.0

4.0

6.2

2.0

-

Enel SpA

(%)

-28.6

-14.9

17.0

-13.7

-

Enel SpA

Share price performance
Financial performance of the share(4)Enel
FTSEMib

(%)

-13.3

23.0

-5.4

-36.3

-

Enel SpA

Endesa

(%)

-12.7

-9.6

-6.1

-3.1

-

EndesaEnel Américas (ex Enersis)

(%)

22.0

-19.8

-30.5

41.8

-

Enel
Américas

Enel Chile

(%)

30.8

-46.0

-21.7

76.8

-

Enel Chile

Ibex 35

(%)

-5.6

7.9

-15.5

-13.5

-

Enel SpA

MICEX

(%)

-

15.1

8.0

-15.1

-

Enel SpA

IPSA

(%)

22.1

3.1

-10.5

19.0

-

Enel SpA(cent euro)

0.40

0.38

0.36

0.02

5.3

Enel SpATSR (Total Shareholder Return) from IPO(accumulated)

(%)

158.6

239.1

281.2

-80.5

-

Enel SpATSR from IPO (annualized)

(%)

4.2

5.7

6.5

-1.5

-

Enel SpATSR last 2 years (accumulated)

(%)

-32.2

8.4

79.4

-40.6

-

Enel SpA

Return for the shareholder
DPS

496

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

KPI

UM

December2022

December2021

TSR last 2 years (annualized)

(%)

-17.6

4.1

33.9

(no.)

51.0

56.0

(mil euros)

60,068

(i)

1.4

(i)

BBB+
Negative

Our performance5

December2020 2022-2021

Appendix

%

Scope

-21.7

-

Enel SpA

40.0

-5.0

-8.9

Enel SpA

51,69345,415

8,375

16.2

Enel

1.2

1.1

0.2

17.2

Enel

BBB+

BBB+

-

-

Enel

StableOutlook

StableOutlook

-

-

Enel

Communication to shareholders
Information requests from retailshareholders(5)LENDERS
Debt
Total debt
Debt to Equity
Rating
S&P
Outlook(i)

Moody’s

(i)

Baa1

Baa1

Baa2

-

-

Enel

Outlook(i)

Negative

Positive

Positive

-

-

Enel

Fitch

(i)

BBB+

A-

A-

-

-

Enel

(i)

StableOutlook

StableOutlook

StableOutlook

-

-

Enel

(no.)

9

9

9

-

-

Enel SpA

Outlook405-1 CORPORATE GOVERNANCE
Board of Directors (BoD)
Members of BoD by typeExecutive members

(no.)

1

1

1

-

-

Enel SpA

Non-executive members

(no.)

8

8

8

-

-

Enel SpA- of whom independent(6)

(no.)

8

8

7

-

-

Enel SpA

Women on BoD of the Group:
Women on the BoD of Enel SpA

(no.)

4

4

4

-

-

Enel SpA

Women on the BoD of Group companies

(no.)

76

247

208

-171

-69.2

Enel

Members of the BoD by age group

2-26

Under 30 years old

(%)

-

-

-

-

-

Enel SpA

30 - 50 years old

(%)

11

11

22

-

-

Enel SpA

Over 50 years old

(%)

89

89

78

-

-

Enel SpABoD meetings(7)

(no.)

16

16

16

-

-

Enel SpA

(no.)

172

153

151

19

12.4

Enel

Implementation of the Code of Ethics(8)

Reports received by type of stakeholder:
Internal stakeholders

(no.)

22

27

25

-5

-18.5

Enel

External stakeholders

(no.)

19

24

22

-5

-20.8

Enel

Anonymous

(no.)

131

102

104

29

28.4

Enel

Reports received for harmed or potentiallyharmed stakeholder:

(no.)

172

153

151

19

12.4

Enel

Shareholder

(no.)

48

67

55

-19

-28.4

Enel

Customer

(no.)

12

7

3

5

71.4

Enel

Employee

(no.)

74

51

64

23

45.1

Enel

General public

(no.)

4

5

5

-1

-20.0

Enel

Suppliers

(no.)

34

23

24

11

47.8

Enel

Reports received by status:

(no.)

172

153

151

19

12.4

Enel

Reports being assessed

(no.)

15

-

-

15

-

Enel

Reports for which a violation has not been
confirmed

(no.)

128

109

125

19

17.4

Enel

Reports for which a violation has been
confirmed

(no.)

29

44

26

-15

-34.1

Enel

Reports related to:

(no.)

172

153

151

19

12.4

Enel

Conflict of interests/Bribery/Corruption

(no.)

30

32

25

-2

-6.3

Enel

Sustainability Statement

497

GRI/
EUSS

KPI

UM

December2022

December
2021

December2020 2022-2021

Misappropriation

(no.)

20

31

29

-11

%

Scope

-35.5

Enel

Work practices

(no.)

96

71

79

25

35.2

Enel

Community and society

(no.)

1

3

4

-2

-66.7

Enel

Other reasons

(no.)

25

16

14

9

56.3

Enel

Violations confirmed by type of harmed
stakeholder:

(no.)

29

44

26

-15

-34.1

Enel

Shareholder

(no.)

14

19

17

-5

-26.3

Enel

Customer

(no.)

1

-

-

1

-

Enel

Employee

(no.)

11

14

5

-3

-21.4

Enel

General public

(no.)

-

1

1

-1

-100.0Enel

Suppliers

(no.)

3

10

3

-7

-70.0

Enel

(no.)

29

44

26

-15

-34.1

Enel

(no.)

9

8

2

1

12.5

Enel

406-1 Violations related to incidents of:Conflict of interests/Bribery/Corruption(9)Misappropriation

(no.)

4

5

14

-1

-20.0

Enel

Work practices

(no.)

11

27

9

-16

-59.3

Enel

Community and society

(no.)

-

1

-

-1

-100.0

Enel

Other reasons

(no.)

5

3

1

2

66.7

Enel

Violations regarding incidents of conflict ofinterest/corruption, by country:

(no.)

9

8

2

1

12.5

Enel

Argentina

(no.)

-

-

-

-

-

Argentina

Brazil

(no.)

2

-

2

2

-

Brazil

Chile

(no.)

2

-

-

2

-

Chile

Colombia

(no.)

1

4

-

-3

-75.0

Colombia

Italy

(no.)

1

1

-

-

-

Italy

Peru

(no.)

-

-

-

-

-

Peru

Romania

(no.)

-

-

-

-

-

Romania

Russia

(no.)

-

2

-

-2

-100.0Russia

Spain

(no.)

-

1

-

-1

-100.0

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 ofconflict of interest/corruption

(no.)

9

10

2

-1

-10.0

Enel

of which: actions taken against employees
in response to cases of conflict of interest/
corruption

(no.)

6

7

2

-1

-14.3

Enel

of which: actions taken against contractors
in response to cases of conflict of interest/
corruption

(no.)

3

3

-

-

-

Enel

Grants supplied in the period by geographic
area(mil euros)

7.4

43.5

7.8

-36.1

-83.0

Enel

Italy

(mil euros)

5.0

37.1

4.9

-32.1

-86.6

Italy

INSTITUTIONAL RELATIONS
201-4 Grants

498

Romania(mil euros)

-

-

-

-

-

RomaniaSpain(mil euros)

2.1

1.7

1.4

0.4

23.1

Spain

Brazil(mil euros)

-

4.1

-

-

-

BrazilColombia(mil euros)

0.37

-

1.0

0.4

-

Colombia

Chile(mil euros)

-

0.5

0.5

-

-

Chile

Energy networks

(%)

60.9

55.7

49.7

5.2

9.5

Enel

R&D

(%)

38.6

17.2

35.8

21.4

-

Enel

Sustainability Report 2022

1

Letter to stakeholders

GRI/
EUSS

2

We empower sustainable progress

3

Materiality analysis

4

KPI

UM

December2022

December
2021

Renewable

(%)

-

20.9

Our performance5

December2020 2022-2021
12.3

-20.9

Appendix

%

Scope

-

Enel

Training

(%)

-

5.8

-

-

-

Enel

Other

(%)

0.5

0.3

2.3

0.2

40.2

Enel

Number of projects which received grants

(no.)

37

100

48

-63.0

-63.0

Enel

(mil euros)

8,219

6,692

6,314

1,527

22.8

Enel

Loans granted by the EIB and others
Remaining debt on loans from EIB andothers by geographic area
- Italy(mil euros)

3,912

3,761

3,735

150.9

4.0

Italy

- Iberia(mil euros)

2,556

1,889

-

667.2

35.3

Iberia- Latin America(mil euros)

1,209

823

-

386.0

46.9

Latin
America- Europe and North Africa(mil euros)

-

100

-

-100.3-100.0Europeand North
Africa- Africa, Asia and Oceania(mil euros)

-

-

-

-

-

Africa SubSaharianae Asia- North America(mil euros)

542

132

-

410.0

-

North
America

(%)

52.0

60.4

62.9

-8.4

-13.9

Enel

Remaining debt on loans from EIB andothers by destination(9)Energy networks
R&D

(%)

0.0

0.1

0.1

-0.1

-

Enel

Renewable

(%)

41.0

37.0

34.5

4.0

10.8

Enel

Training

(%)

-

-

-

-

-

Enel

Other

(%)

7.0

2.5

2.6

4.5

-

Enel

Number of projects in progress approved
with loans from EIB and others

(no.)

212

147

138

65.0

44.2

Enel

Lobbying, interest representation or similar(euro)

-

-

-

-

-

Enel

Local, regional or national political
campaigns / organizations / candidates(euro)

-

-

-

-

-

Enel

Trade associations or tax-exempt groups(e.g. think tanks)(euro) 9,595,575.0

8,424,797

8,356,353

1,170,778.0

13.9

Enel

Other (e.g. spending related to ballot
measures or referendums)(euro)

-

-

-

-

Enel

Total contributions and other spending(euro) 9,595,575.0

8,424,797

8,356,353

13.9

Enel

Policy influence

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

1,170,778.0

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.
Calculated comparing the number of shares held by identified Socially Responsible Investors (SRIs) with the number of shares held by identified institutional
investors.
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).
Calculated as the difference between the valuation on the last open market day of the year and the valuation of the previous year.
Only requests received have been considered, not the responses provided.
Directors qualified as independent pursuant to the Single Financial Act and the Italyn Corporate Governance Code (Edition 2020)
Of these, 12 meetings were held in 2022 on sustainability issues.
During the year, the verification of all the reports received in 2021 was completed: the number of confirmed violations for 2021 was therefore revised from 41
to 44. The three additional violations are to be ascribed to a case of conflict of interest and two cases of inappropriate behavior related to labor practices.
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.

Sustainability Statement

499

GRI Content Index
Statement of use

Enel SpA has reported in accordance with the GRI Standards for the period 1 January 2022 – 31 December
2022

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)Electric Utilities Disclosure 2013
Location

GRI Standards

Disclosure

GRI 2: General Disclosures 2021
The organization and its reporting practices
2-1

Organizational details

Pg. 12-13; 390;
448; Sustainability
Statement sec. Sound
governance

2-2

Entities included in the organization’ssustainability reportingPg. 448; 454

2-3

Reporting period, frequency and contact point

Pg. 448; 454

2-4

Restatements of information

Pg. 448; 454

2-5

External assurance

Pg. 558-562

Activities and workers
Activities, value chain and other business
relationships

Pg. 12-13; 164-165;
239; 248; 454

2-7

Employees

Pg. 212-213;
Sustainability
Statement sec.
Empowering Enelpeople2-8Workers who are not employees

Sustainability
Statement sec.
Empowering Enelpeople2-6

GRI 2: General
Disclosures 2021

500

Governance

2-9

Governance structure and composition

Pg. 29-30; 111-113;
309; 390-394;
Sustainability
Statement sec. Sound
governance

2-10

Nomination and selection of the highest
governance bodyPg. 30-31; 394

2-11

Chair of the highest governance bodyPg. 392-394

2-12Role of the highest governance body inoverseeing the management of impacts

Pg. 29-31; 48; 111-114;
309-311; 351-354;
394; 396-398

2-13

Delegation of responsibility for managing
impacts

Pg. 29-31; 111-114;
309-312; 392-394

2-14Role of the highest governance body insustainability reportingPg. 29-31; 392-394

2-15

Conflicts of interest

Pg. 396-397; 411-413

2-16Communication of critical concerns

Pg. 394; 411-413

2-17Collective knowledge of the highest governance Pg. 30-31; 390-391;
body
394

2-18

Evaluation of the performance of the highest
governance bodyPg. 30-31; 390-391;
394

2-19

Remuneration policies

Pg. 111-114; 394-395

2-20

Process to determine remuneration

Pg. 111-114; 394-395

2-21

Annual total compensation ratio

Pg. 111-114; 394-395

Sustainability Report 2022

Omissions
Part Omitted

ReasonExplanation

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Strategy, policies and practices

GRI 2: General
Disclosures 2021

2-22Statement on sustainable development strategy Pg. 8-9

2-23

Policy commitments

Pg. 351-356; 411-413

2-24

Embedding policy commitments

Pg. 29-31; 111-114;
189-207; 212-214;
252-254; 309-312;
351-353; 378-381

2-25

Processes to remediate negative impacts

Pg. 174; 189-207;
364-372

2-26

Mechanisms for seeking advice and raisingconcerns

Pg. 174; 189-207;
364-372

2-27

Compliance with laws and regulations

Pg. 346; Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

2-28

Membership associations

Pg. 31-33; 103-110

Stakeholder engagement
Approach to stakeholder engagement

Pg. 48-51; 52-58; 173174; 220; 262-254;
360-362; 390-391

2-30Collective bargaining agreements

Pg. 233-234;
Sustainability
Statement sec.
Empowering Enelpeople3-1

Process to determine material topics

Pg. 34; 48-51; 52-56;
57-58; 59-60; 448449; 452

3-2

List of material topics

Pg. 34; 57-58; 59-60;
448-449; 452

3-3Management of material topics

Pg. 34; 48-51; 59-60;
452

3-3

Management of material topics

Pg. 17; 48; 94; 115;
130; 133; 396

201-1

Direct economic value generated anddistributed

Pg. 17; Sustainability
Statement sec. We
empower sustainable
progress

201-2

Financial implications and other risks andopportunities due to climate change

Pg. 48; 94; 115; 130;133; 396

201-3

Defined benefit plan obligations and otherretirement plans

Sustainability
Statement sec.
Empowering Enelpeople201-4

Financial assistance received from government

Sustainability
Statement sec. Sound
governance

2-29

Material Topics

GRI 3: Material
Topics 2021

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

3-3Management of material topics

Pg. 256

GRI 203:
Indirect Economic
Impacts 2016

203-1

Investments in infrastructure and supported
servicesPg. 256; Sustainability
Statement
sec. Engaging
communities

Content Index

501

Procurement Practices
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-240

GRI 204:
Procurement
Practices 2016

204-1

Proportion of spending on local suppliers

Sustainability
Statement sec.
Sustainable supply
chain

3-3

Management of material topics

Pg. 411-413

205-1

Operations assessed for risks related tocorruption

Pg. 411-413

205-2

Communication and training about
anticorruption policies and procedures

Pg. 411-413;
Sustainability
Statement sec.
Empowering Enelpeople205-3

Confirmed incidents of corruption and actions
taken

Pg. 411-413;
Sustainability
Statement sec. Sound
governanceAnti-corruption
GRI 3: Material
Topics 2021

GRI 205:
Anticorruption
2016

Anti-competitive Behavior
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 411-413

GRI 206:
Anticompetitive
Behavior 2016

206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

13 legal actions havebeen recorded in 2022
(10 in Italy and 3 inIberia)3-3Management of material topics

Pg. 416-417

207-1

Approach to tax

Pg. 416-417

207-2

Tax governance, control, and risk management
due to climate change

Pg. 416-417; 419-421

207-3

Stakeholder engagement and management ofconcerns related to tax

Pg. 416-417; 421-422

207-4

Country-by-country reportingPg. 423-444

Tax
GRI 3: Material
Topics 2021

GRI 207: Tax 2019

300 series (Environmental Topics)
Materials
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 248; 293-295

Materials used by weight or volume

Pg. 248; Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital;
Sustainable supply
chain

301-2

Recycled input materials used

Pg. 293-295;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

3-3Management of material topics

Pg. 345-346

302-1

Energy consumption within the organization

Pg. 345-346;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

302-3

Energy intensity

Pg. 345-346

301-1
GRI 301:
Materials 2016

EnergyGRI 3: Material
Topics 2021

GRI 302: Energy
2016

502

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Water and effluentsGRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 155; 334-338

303-1

Interactions with water as a shared resource

Pg. 334-338

303-2

Management of water discharge-related
impacts

Pg. 334-338

303-3 Water withdrawal

Pg. 155; 334-338;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

303-4 Water discharge

Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

303-5 Water consumption

Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

3-3Management of material topics

Pg. 319-332

304-1

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highPg. 319-332
biodiversity value outside protected areas

304-2

Significant impacts of activities, products, andservices on biodiversity

GRI 303: Water
and Effluents
2018

Biodiversity
GRI 3: Material
Topics 2021

GRI 304:
Biodiversity 2016

304-3 Habitats protected or restored

Pg. 319-332
Pg. 319-332

IUCN Red List species and national conservation
304-4 list species with habitats in areas affected by
Pg. 319-332
operations
Emissions
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 148-151; 332-333

Content Index

503

Direct (Scope 1) GHG emissions

Pg. 148-151;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

305-2 Energy indirect (Scope 2) GHG emissions

Pg. 148-151;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

305-3 Other indirect (Scope 3) GHG emissions

Pg. 148-151;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

305-4 GHG emissions intensity

Pg. 148-151;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

305-5 Reduction of GHG emissions

Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

305-1

GRI 305:
Emissions 2016

Pg. 148-151;
Sustainability
Statement sec. Zero
305-6 Emissions of ozone-depleting substances (ODS)
emissions ambition,
Conservation ofnatural capital

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), andother significant air emissions

Pg. 332-333;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

3-3Management of material topics

Pg. 339-342

306-1

Waste generation and significant wasterelated
impacts

Pg. 339-342

306-2

Management of significant wasterelated
impacts

Pg. 339-342

Waste
GRI 3: Material
Topics 2021

306-3 Waste generated

Pg. 339-342;
Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

306-4 Waste diverted from disposal

Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

306-5 Waste directed to disposal

Sustainability
Statement sec. Zeroemissions ambition,
Conservation ofnatural capital

GRI 306: Waste
2020

Supplier Environmental Assessment
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-242

GRI 308: Supplier
Environmental
Assessment 2016308-1

New suppliers that were screened using
environmental criteria

Pg. 239-242

504

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

400 series (SocialTopics)
Employment
GRI 3: Material
Topics 2021

GRI 401:
Employment
2016

Management of material topics

Pg. 12-15; 212-213;
230-232

401-1

New employee hires and employee turnoverPg. 12-15; 212213; Sustainability
Statement sec.
Empowering Enelpeople401-2

Benefits provided to full-time employees thatare not provided to temporary or part-time
employees

Pg. 230-232

401-3

Parental leave

Sustainability
Statement sec.
Empowering Enelpeople3-3

Labor/Management Relations
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 233-234

GRI 402: Labor/
Management
Relations 2016

402-1

Minimum notice periods regarding operationalchangesPg. 233-234

Occupational Health and Safety
GRI 3: Material
Topics 2021

GRI 403:
Occupational
Health and Safety
2018

3-3

Management of material topics

Pg. 378-387

403-1

Occupational health and safety management
system

Pg. 378-383

403-2

Hazard identification, risk assessment, andincident investigation

Pg. 378-383

403-3 Occupational health services

Pg. 383-384

Worker participation, consultation, and403-4 communication on occupational health andsafetyPg. 387403-5

Worker training on occupational health andsafety403-6 Promotion of worker health403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

403-9 Work-related injuries

Pg. 384-385
Pg. 378-387
Pg. 378-387
Pg. 378-387;
Sustainability
Statement sec.
Occupational healthand safety

Training and Education
GRI 3: Material
Topics 2021

GRI 404: Training
and Education
2016

3-3

Management of material topics

Pg. 12-15; 212-213;
216-219404-1

Average hours of training per year per
employeePg. 12-15; 212-213;
216-219; Sustainability
Statement sec.
Empowering Enelpeople404-2

Programs for upgrading employee skills andtransition assistance programs

Pg. 216-219

404-3

Percentage of employees receiving regularperformance and career development reviews

Pg. 216-219

Diversity and Equal Opportunity
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 12-15; 212-213;
220-227

Content Index505

405-1

Diversity of governance bodies and employees

GRI 405: Diversity
and Equal
Opportunity 2016

Pg. 12-15; 212-213;
220-223; Sustainability
Statement sec.
Empowering EnelpeopleRatio of basic salary and remuneration of
405-2
women to men

Pg. 224-227;
Sustainability
Statement sec.
Empowering EnelpeopleGRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 411-413

GRI 406:
Nondiscrimination
2016

406-1

Incidents of discrimination and corrective
actions taken

Pg. 411-413;
Sustainability
Statement sec. Sound
governanceNon-discrimination

Freedom of Association and Collective Bargaining
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-240; 351

GRI 407: Freedomof Association
and Collective
Bargaining 2016

407-1

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

Pg. 239-240; 351

GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-240; 351;
411-413

GRI 408: Child
Labor 2016

408-1

Operations and suppliers at significant risk forincidents of child laborPg. 239-240; 351;
411-413Child Labor

Forced or Compulsory LaborGRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-240; 351;
411-413

GRI 409: Forced
or Compulsory
Labor 2016409-1

Operations and suppliers at significant risk forincidents of forced or compulsory laborPg. 239-240; 351;
411-413

3-3Management of material topics

Pg. 351; 354

Security personnel trained in human rights
policies or procedures

All Enel people are
involved in training
about sustainability
issues, of whichhuman rights are afundamental element.
All suppliers signspecific clauses
concerning humanrights and commit tocomplying with theassociated policy

Security Practices
GRI 3: Material
Topics 2021

GRI 410: Security
Practices 2016

410-1

Rights of Indigenous Peoples
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 252-254; 351;
365-372

GRI 411: Rights
of Indigenous
Peoples 2016

411-1

Incidents of violations involving rights ofindigenous peoples

No violations of therights of indigenous
peoples have beenreported

3-3Management of material topics

Pg. 252-254; 351;
365-372; 411-413

Local Communities
GRI 3: Material
Topics 2021

506

Sustainability Report 2022

1

Letter to stakeholders

GRI 413: Local
Communities
2016

2

We empower sustainable progress

3

Materiality analysis

413-1

Operations with local community engagement,
impact assessments, and development
programs

Pg. 252-254; 351;
365-372; 411-413
The assets of thegeneration park inthermoelectric andrenewable operation
are managed using
sustainable plantand design andconstruction sitemodels413-2

Operations with significant actual and potential
negative impacts on local communities

Pg. 252-254; 351;
365-372; 411-413

4

Our performance5

Appendix

Supplier Social Assessment
GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 239-242

GRI 414:
Supplier Social
Assessment 2016414-1

New suppliers that were screened using social
criteria

Pg. 239-242

3-3Management of material topics

Pg. 411-413

Political contributions

Enel does not havedirect relations with
political parties anddoes not provide
financing of any
kind, as explicitly
established at point
2.2 of the Zero
Tolerance ofCorruption Plan
and at point 3.26 of
the Group’s Codeof Ethics. Some
exceptions canbe found in somecountries following
the local law andsubject to analysis
by the due bodies

Management of material topics

Pg. 386

Assessment of the health and safety impacts ofproduct and service categories

Pg. 386
New products andservices are assessedin terms of potential
impact on health andsafety throughout thevalue chain, in order tominimize that impact,
as confirmed by point
2.2.2 of the Human
Rights Policy

Management of material topics

Pg. 173-175

Public Policy
GRI 3: Material
Topics 2021

GRI 415: Public
Policy 2016

415-1

Customer Health and Safety
GRI 3: Material
Topics 2021

GRI 416:
Customer Healthand Safety 2016

3-3

416-1

Marketing and Labeling
GRI 3: Material
Topics 2021

3-3

Content Index

507

Requirements for product and service
information and labeling

All the Group salecompanies comply
with the transparency
obligations envisagedby various nationaland supranational
regulations regarding
the source of theelectricity sold. Energy
bills must specify themix of energy sources
used and the sourceof the energy

417-3

Incidents of non-compliance concerningmarketing communications

In 2022 there wereno cases of noncompliance withregulations or
voluntary codes
relating to the EnelGroup marketing
activities

GRI 3: Material
Topics 2021

3-3Management of material topics

Pg. 351; 413

GRI 418:
Customer Privacy
2016

418-1

Substantiated complaints concerning breachesof customer privacy and losses of customer
data

Pg. 351; 413

417-1

GRI 417:
Marketing andLabeling 2016

Customer Privacy

General standard disclosures for the electric utility sector
General standard
disclosures forthe electric utility
sectorPage number(s)/URL/
Direct answer

EU1

Pg. 12-15; 153; 168; Sustainability Statement sec.
We empower sustainable progress

EU2

Pg. 12-15; 153; 168; Sustainability Statement sec.
We empower sustainable progress

EU3

Pg. 153; 164-165; 172; Sustainability Statement sec.
Clean electrification

EU4

Pg. 153; 164-165; 170; Sustainability Statement sec.
We empower sustainable progressSpecific standard disclosures for the electric utility sector
Category: economic
MATERIAL ASPECT: DEMAND SIDE MANAGEMENT
DMA

Pg. 170
MATERIAL ASPECT: RESEARCH AND DEVELOPMENT

DMA

Pg. 267; Sustainability Statement sec. Innovation
MATERIAL ASPECT: SYSTEM EFFICIENCY

EU11

Pg. 153; Sustainability Statement sec. Clean
electrification

EU12

Sustainability Statement sec. Clean electrification

Category: social
Sub-category: labor practices and decent work
Material aspect: employment

508

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

DMA

Pg. 216-219

DMA

Pg. 384-385

EU15

Sustainability Statement sec. Empowering Enel people

EU18

Pg. 384-385

4

Our performance5

Appendix

Sub-category: society
Material aspect: local communities
DMA

Pg. 365-372

EU22

Pg. 365-372

Material aspect: disaster/emergency planning and response
DMA

Pg. 386

Sub-category: product responsibility
Material aspect: customer health and safety
EU25

Pg. 386; Sustainability Statement sec. Occupational
health and safety

Material aspect: access
DMA

Pg. 172

EU26

Italy: 0%
Spain: 0%Argentina: 0.7%
Brazil: 0%
Chile: 0.8%
Colombia: 0.1%
Peru: 4.1%

EU27

Sustainability Statement sec. Clean electrification

EU28

Sustainability Statement sec. Clean electrification

EU29

Sustainability Statement sec. Clean electrification

EU30

Pg. 153; Sustainability Statement sec. Clean
electrification

Material aspect: provision of information
DMA

Pg. 174-176

Content Index

509

SASB Content Index
The 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”.
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 2022 Sustainability Report.

SECTOR: ELECTRIC UTILITIES & POWER GENERATORS SECTOR
Reference

Air Quality

Greenhouse Gas Emissions & Energy Resource
Planning

Topic Code

Accounting Metric

2022

2021

2020

Variation(1) Gross global Scope 1 emissions (MtCO2eq)

53.1

51.6

45.6

1.5

(2) Percentage covered under emissions-limiting
regulations (%)**

75.8

61.5

53.0

14.3

(3) Percentage covered under emissions-reporting
regulations (%)

100.0

100.0

100.0

-

IF-EU-110a.2

Greenhouse gas (GHG) emissions associated withpower deliveries (Mt) CO2-e***

80.5

74.7

68

5.8

IF-EU-110a.3

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

Sustainability Report 2022, chapter“Zero emissions ambition”

IF-EU-110a.1

IF-EU-110a.4(1) Number of customers served in markets subject
to renewable portfolio standards (RPS)

Water Management
Coal AshManagement

305-1

305-3

201-2

N/A US regulation not applicable(2) percentage fulfillment of RPS target by market

IF-EU-120a.1

Air emissions of the following pollutants:(1) NOx (excluding N2O), (t)74,22578,84676,257-4,621(2) SOx

16,602

15,615

20,547987(3) particulate matter (PM10, related to thermal
generation) (t)

1,227

1,099

1,242

128

(4) lead (Pb)

N/A

N/A

N/A

-

(5) mercury (Hg from coal plants) (t)

0,08

0,05

0,05

0,03

(6) percentage of each in or near areas of dense
population

510

GRI

IF-EU-140a.1

305-7

N/A

(1) Total water withdrawn (Mm³)

76.0

73.1

69.1

2.9

303-3 a(2) total water consumed (Mm³)

45.2

43.8

37.9

1.4

303-5 a3) percentage of each in regions with High orExtremely High Baseline Water Stress**** (%)

19.3

23.0

19.5

-3.7

303-3

20.6

24.0

21.9

-3.5

303-5

5

9

N/A

-4

303-4 dIF-EU-140a.2

Number of incidents of non-compliance associatedwith water quantity and/or quality permits,standards, and regulations

IF-EU-140a.3

Description of water management risks anddiscussion of strategies and practices to mitigate
those risks

Sustainability Report 2022, chapter“Conservation of natural capital”

1) Amount of coal combustion residuals (CCR)
generated (Mt)

1.18

0.79

0.78

0.39

306-3

2) percentage recycled (%)

82.0

70.0

71.0

12.0

306-4

Total number of coal combustion residual (CCR)
impoundments, broken down by hazard potential
classification and structural integrity assessment

N/A EPA methodology not applicable

IF-EU-150a.1

IF-EU-150a.2

Sustainability Report 2022

303-1
303-2

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

SECTOR: ELECTRIC UTILITIES & POWER GENERATORS SECTOR
Reference

Energy Affordability

Topic CodeIF-EU-240a.1

Average electric rate for customers (R)IF-EU-240a.2

Typical monthly electric bill for residential
customers for (1) 500 kWh and (2) 1,000 kWh ofelectricity delivered per month

IF-EU-240a.3

Nuclear Safety &Emergency Management

End-Use Efficiency &DemandWorkforce
Health & Safety

IF-EU-240a.4

Grid
Resiliency

Accounting Metric

2021

2020

Consumption rates not representative for European market
2,373,491

1,330,504

1,336,2862) percentage reconnected within 30 days

91,9

N/A

N/A

-

Discussion of impact of external factors on
customer affordability of electricity, including the
economic conditions of the service territory(2) fatality rate

0.52

2.86

3.243

-2.34

-

0.024

0.008

-0.024

4.887

4.286

4.918

0.601

N/A

-0,1

Percentage of electric utility revenues from rate
structures that (1) are decoupled and (2) contain alost revenue adjustment mechanism (LRAM)

F-EU-420a.2

Percentage of electric load served by smart gridtechnology******

70.3

F-EU-420a.3

Customer electricity savings from efficiency
measures, by market (megawatt hours)

N/A Available from 2023 reporting cycle

403-9

N/A US regulation

4

70.4

4

4

-

(2) Total number of nuclear power units, broken
down by U.S. Nuclear Regulatory Commission (NRC)
Action Matrix Column

N/A US regulation

IF-EU-540a.2

Description of efforts to manage nuclear safety andemergency preparedness

Sustainability Report 2022, chapter“Occupational health and safety”

F-EU-550a.1

Number of incidents of non-compliance withphysical and/or cybersecurity standards orregulations-(1) System Average Interruption Duration Index(SAIDI),

230.7

243.3

N/A

-12.6

(2) System Average Interruption Frequency Index(SAIFI)

2.6

2.8

N/A

-0.2

(3) Customer Average Interruption Duration Index(CAIDI), inclusive of major event days

89

N/A

N/A

-

IF-EU-550a.2

EU27
DMA EU(former EU7)DMA EU(former
EU23)
3-3
102-43102-44

Sustainability Report 2022, chapter “Clean electrification”

F-EU-420a.1(1) Total number of nuclear power units that are
owned and/or operated

GRI

N/A

3,709,777(3) near miss frequency rate (NMFR)IF-EU-540a.1

Variation

1) Number of residential customer electric
disconnections for non-payment (u)*****(1) Total recordable incident rate (TRIR),
IF-EU-320a.1

2022

DMA EU
former
EU21

15

0
EU29

Content Index

EU28

511

SECTOR: ELECTRIC UTILITIES & POWER GENERATORS SECTOR
Reference
Topic Code

Accounting Metric

IF-EU-000.A

IF-EU-000.B

IF-EU-000.C

2022

2021

2020

Variation

GRI

66,784,895

69,342,818

69,517,932-2,557,923

EU3

Total electricity delivered to:(1) residential

113,533

N/A

N/A

-

Total electricity delivered to:(2) industrial and commercial

158,932

N/A

N/A

-

Total electricity delivered to:(4) all other retail customers,

N/A

N/A

N/A

-

Total electricity delivered to:(5) wholesale customers

N/A

N/A

N/A

-

2,024,038

2,233,368

2,232,022-209,330

227,767

222,605

207,108

5,161,59

Number of: (1) residential, (2) commercial, and (3)industrial customers served

Length of transmission and distribution lines (km)(1) Total electricity generated (GW)IF-EU-000.D(2) Percentage by major energy source - coal

8.7

N/A

N/A

-

(2) Percentage by major energy source - oil

2.2

N/A

N/A

-

(2) Percentage by major energy source - gas

4.2

N/A

N/A

-

(2) Percentage by major energy source - nuclear

11.6

N/A

N/A

-

(2) Percentage by major energy source - hydro

22.7

N/A

N/A

-

(2) Percentage by major energy source - solar

5.0

N/A

N/A

-

(2) Percentage by major energy source - wind

19.0

N/A

N/A

-

(2) Percentage by major energy source geothermal

2.7

N/A

N/A

-

-

N/A

N/A

-

N/A

N/A

-

70,934,310 47,506,376,44

13,725,590(2) Percentage by major energy source - biomass(3) percentage in regulated markets
IF-EU-000.E

Total wholesale electricity purchased******* (MWh)N/A84,659,900

EU4

EU2

Key
N/A: Not applicable.
N/A: Not available.
* Unaudited for indicators not corresponding to GRI Standards.
** 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).
*** 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.
**** In water stressed areas are included plants located in areas classifies as “arid“ from WRI.
***** For full details see the chapter “Clean electrification” – “Sustainability Statement”.
****** Data available starting from 2021 reporting cycle. The value is calculated as: total energy billed with Smart Meters / total energy billed.
******* The value considers wholesale electricity purchased from the Global Trading Business Line.

512

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1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

TCFD Content Index
Reflecting the Group’s commitment to climate change related disclosures, the following table shows the alignment ofEnel’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 of climate risks inJune 2017.

RECOMMENDATIONS OF THE TCFD (TASK FORCEON CLIMATE-RELATED FINANCIAL DISCLOSURES)

Governance

Disclosure a)
Disclosure b)

Enel’s governance model to face climate change
Competences of corporate bodies
Enel’s organizational model
Incentive system

Disclosure c)

Climate change and long-term scenarios
Energy transition scenarios
The physical climate scenario

Disclosure b)
Disclosure c)

The strategy to tackle climate change
Medium and long-term strategy
Short-term strategy - Investment Plan 2023-2025

Strategy

Disclosure a)

Risk Management

Metrics & Targets

Zero emissions ambition(LINK: Sustainability Report)

Disclosure a)
Disclosure b)
Disclosure c)

Disclosure a)
Disclosure b)
Disclosure c)

Risks and opportunities connected with climate change
Transition phenomena: business effects, risks and opportunities
Physical phenomena: Identification, assessment and management of risks
and opportunities

Enel’s performance in fighting against climate change
Our carbon footprint
Financial, operational and environmental metrics
Financial and operational targets

Enel’s roadmap to decarbonization and electrification

Content Index

513

European Commission Guidelines onreporting climate-related information Content Index
Reflecting the Group’s commitment to climate change related disclosures, the following table shows the alignmentof Enel’s disclosure with respect to “Guidelines on reporting climate-related information” published by the European
Commission in June 2019.

EUROPEAN COMMISSION GUIDELINES ON
ZERO EMISSIONS AMBITIONREPORTING CLIMATE-RELATED INFORMATION (LINK: Sustainability Report)
Enel’s impact on climate change

Business model

Climate change and long-term scenarios
Energy transition scenarios
The physical climate scenario

The strategy to tackle climate change
Medium and long-term strategy
Short-term strategy - Investment Plan 2023-2025

Advocacy about climate change policies
Enel’s commitment to fight against climate change through associations and organizations
Policies and Due Diligence Process

Enel's governance model to face climate change
Competences of corporate bodies
Enel's organizational model
Incentive system

Outcomes

Zero emissions ambition
Enel's roadmap to decarbonization and electrification

Principal Risks and their management

Risks and opportunities connected with climate change
Transition phenomena: business effects, risks and opportunities
Physical phenomena: identification, assessment and management of risks and opportunities

Key Performance Indicators

Enel's performance in fighting against climate change
Our carbon footprint
Financial, operational and environmental metrics
Financial and operational targets

514

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2

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3

Materiality analysis

4

Our performance5

Appendix

WEF Content Index
The International Business Council (IBC) of the World Economic Forum published, in 2020, a report, called ‘Measuring
Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation’(https://www.weforum.org/reports/measuring-stakeholdercapitalism-towards-common-metrics-andconsistentreporting-of-sustainable-valuecreation), with the aim of defining shared common metrics to measure, report andcompare the levels of sustainability, in other words the effectiveness of its actions in pursuing the sustainable
development goals indicated by the UN (SDG), in the business model adopted to create value for stakeholders. The
metrics are based on existing standards and aim to increase convergence and comparability between the various
parameters used in sustainability reports. The following table provides information on the 21 primary indicators (“core”)
indicated in the report and references to the chapters of the 2022 Sustainability Report.

Sustainability Report 2022

Pillar

Theme

Core KPIs

Governing
purposeSetting purpose

Quality of
governing body

Governance bodycomposition

Stakeholder
engagement

Material topics
impactingstakeholders

Principles
of Governance Ethical behavior

Anti-corruption

Protected
ethics advice
and reporting
mechanisms
Risk andopportunity
oversight

21 Core KPIs WEF

2022

2021

Ref. chapters/paragraphs
Variation for 21 Core KPIs WEF“We empower sustainable
progress”

Women on Board of Directors
(no.)

4

4

-

“We empower sustainable
progress”
Employees who received training
about anti-corruption policies
and procedures (%)

47.0

30.3

16.7

Ascertained violations related toconflict of interest/corruption (no.)

9

8

1

Reports received related toviolations of the Code of Ethics

172

153

19

Integrating risk andopportunity intobusiness process

Greenhouse Gas(GHG) emissions
Climate change“Sound governance”“Sound governance”“Sound governance”
Direct greenhouse gas
emissions- Scope 1 (mil teq)

53.1

51.6

1.5

Indirect greenhouse gas
emissions- Scope 2 - Purchased
electricity from the grid (location
based) (mil teq)

4.0

3.8

0.2

Indirect greenhouse gas
emissions - Scope 2 - Purchased
electricity from the grid (market
based) (mil teq)

6.1

6.1

-

Indirect greenhouse gas
emissions - Scope 3 (mil teq)

75.8

70.5

5.3

Hectares restored (ha)

9,452

9,092

360

Water withdrawal (m3)

76.0

73.1

2.9

Water withdrawal in “water
stressed” areas (%)

19.3

23.0

-3.7

Total water consumption (mil m )

45.2

43.8

1.4

Water consumption in “water
stressed” areas (%)

20.6

24.0

-3.4

“Zero emissions ambition”

TCFD
implementation

PlanetNature loss

Freshwater
availability

Land use andecologicalsensitivity
Water
consumption
and withdrawal inwater-stressed
areas

3

“Conservation of natural capital”“Conservation of natural
capital”; “Sustainability
Statement”

Content Index

515

Sustainability Report 2022

PillarTheme

Dignity andequality

Core KPIs

21 Core KPIs WEF

Diversity andinclusion

2021

Women incidence on total
employees (%)

23.4

22.5

0.9

Pay equality

Equal Remuneration Ratio (%)

80.7

81.1

-0.4

Wage level

CEO Pay Ratio (%)(1)

60.0

90.0

-30.0

Risk for incidents
of child, forced orcompulsory labor

Evaluation among the supply
chain of child labour defense andof compulsory or forced work
prohibition
Fatal accidents - Enel (no.)

PeopleHealth and wellHealth and safety
being

Training provided

1

3

-2

0.024

-0.016“Life Changing” injuries - Enel
(no.)

-

1

-1

“Life Changing” injuries
frequency rate - Enel (i)

-

0.008

-0.008Average hours of training per
employee (h/per cap)

47.4

44.6

2.8

Employees training cost(mil euros)

30

23

7

6,412

5,401

1,011

People hired (no.)
Absolute number
and rate of
employment
Employment
and wealthgeneration

Turnover (%)

Innovation inbetter products
and services

9.8

8.1

1.7

4,414

5,862

-1,448

6.8

8.8

-2.0

Economic
contribution
Financialinvestment
contribution

Prosperity

Hiring rate (%)
Terminations (no.)

Total R&D
expensesCommunity andTotal tax paidsocial vitality(1)“Empowering Enel people”;“Sustainability Statement”“Report on Remuneration Policy”“Sound governance”;“Sustainable supply chain”

0.008

Fatalities frequency rate - Enel (i)Skills for the
futureRef. chapters/paragraphs
Variation for 21 Core KPIs WEF

2022“Occupational health andsafety”; “Sustainability
Statement”“Empowering Enel people”;“Sustainability Statement”“Empowering Enel people”;“Sustainability Statement”“Sustainability Statement”
Total investments (mil euros)

14,347 12,997

1,350“Sustainability Statement”

Purchase of treasury shares anddividends and interim dividends
paid to holders of hybrid bonds

5,038

5,054

-16

Consolidated financial
statements

Investments in research anddevelopment (mil euros)

105

130

-25

“Innovation”; “Sustainability
Statement”

Total tax paid (mil euros)(2)

4,778

4,082

696

“Tax transparency”

Ratio between the total remuneration of the CEO/General Manager of Enel and the average gross annual remuneration of Group employees. In order to ensurethat the figures for 2022 and 2021 are comparable, the 2021 figure has been adjusted by applying the 2022 exchange rate to the 2021 remuneration data.
(2) The amount represents “total tax borne”, which is costs for taxes borne by the Group. For more information, see the 2022 Sustainability Report and theConsolidated Non-Financial Statement. The 2021 figure has been calculated more accurately.

516

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1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Sustainable Finance Disclosure
Regulation (PAI) Content Index
PAI (Principal Adverse Impact) indicators, according to the “Sustainable Finance Disclosure Regulation”, Regulation (EU)2019/2088

ISSUE

INDICATORS

2022 VALUE

2021 VALUECHAPTER REFERENCE

Scope 1 – Total directemissions, mil teq

53,07

51,57

For further information, see
the “Zero emissions ambition”
chapter

Scope 2, location-based– Total indirect emissions,mil teq

4,02

3,77

For further information, see
the “Zero emissions ambition”
chapter

Scope 2, market-based –Total indirect issues, mil teq

6,06

6,11

For further information, see
the “Zero emissions ambition”
chapter

Scope 3 – Total indirectemissions, mil teq

75,80

70,46

For further information, see
the “Zero emissions ambition”
chapter

2. Carbon footprint

Indicator not directly applicable to Enel, because it is calculated by the investor on the basisof the above data.

3. GHG intensity ofinvestee companies

Indicator not directly applicable to Enel, because it is calculated by the investor on the basisof the above data.

4. Exposure to companies
active in the fossil fuelsectorIndicator not applicable to Enel.

5. Share of non-renewableenergy consumption andproduction

For 2022, total non-renewable energy consumption
amounted to 1,053,083 TJ (2021 figure of 1,044,714 TJ)
while generation from non-renewable sources amounted
to 115,318 GWh (2021 figure of 113,789 GWh).
In any case, note that the final indicator requested
cannot be directly communicated by Enel, as it iscalculated by the investor.

For information on thesubstantive data used to
calculate the indicator, pleaserefer to the Sustainability
Statement, “Zero emissions
ambition” section for details on
Fuel consumption by primarysource (TJ) and "We empower
sustainable progress" for data
relating to energy generation.

6. Energy consumption
intensity per high impact
climate sector

For 2022, total non-renewable energy consumption
amounted to 1,108,069 TJ (2021 figure of 1,099,302 TJ).
In any case, note that the final indicator requested
cannot be directly communicated by Enel, as it iscalculated by the investor.

For information on thesubstantive data used to
calculate the indicator, pleaserefer to the Sustainability
Statement, “Zero emissions
ambition” section for details on
Fuel consumption by primarysource (TJ)

BIODIVERSITY

7. Activities negatively
affecting biodiversitysensitive areas

In 2022, 4 new power generation plants were built in areasof high biodiversity value (biodiversity-sensitive areas),
2 fewer than in 2021, including 3 in critical habitats and
1 area containing species at risk of extinction, for which
action plans were developed to restore habitats andprotect species. Of these, note the project to improve
habitats for reptiles, amphibians and other wildlife groups
at a photovoltaic plant in Torrecilla, Spain.

For further information, pleaserefer to the “Conservationof natural capital”, “Thebiodiversity action plan” section

WATER

8. Emissions to water

Indicator not applicable to Enel.

9. Hazardous waste ratio

For 2022, the total amount of hazardous waste was55,940 t (2021 figure of 64,365 t).
In any case, note that the final indicator requested
cannot be directly communicated by Enel, as it iscalculated by the investor.

GREENHOUSE GASEMISSIONS

WASTE

For further information, pleaserefer to the “Conservation ofnatural capital” chapter and to
the Sustainability Statement,“Zero emissions ambition”
sectionContent Index

517

In 2022, 20 cases of violations were recorded as
attributable to the principles enshrined in the Group’s
Policy on Human Rights, drawn up in compliance withthe main United Nations international standards ofreference and with the OECD guidelines for multinational
companies. Specifically:• 9 violations relating to “Conflict of interest/corruption”
for the pursuit of personal interests or interests that
harm the company;• 11 violations connected to inappropriate behavior byindividual employees that is detrimental to respectfor diversity and non-discrimination and the failure
to comply with the internal procedures on health andsafety issues.

For further information,please refer to the “Sound
governance” chapter – “Values
and pillars of corporate ethics”
and “Stakeholder reports”
sections

The implementation and monitoring of the commitments
expressed in the human rights policy adopted by the EnelGroup are governed by a process, which, as required by
the UN Guidelines and the OECD Due Diligence Guidancefor Responsible Business Conduct, aims to evaluate
our procedures and operational processes and define,
if necessary, an improvement plan to strengthen thesystems that protect the principles set out in the Policyon Human Rights. This process is codified in a globally
applicable internal procedure and involves “identifying,
preventing, mitigating and reporting” adverse effects
11. Lack of processes
potentially caused by the business. Specifically, it isand compliancedivided into the following phases:
mechanisms to monitor
1. assessment of the risk perceived by key stakeholders,compliance with UN Global at country level with reference to labor rights, local
communities and the environment;
Compact principles and2. gap analysis aimed at analyzing organizational
OECD Guidelines forand control systems to protect risks and identify any
Multinational Enterprises
shortcomings;
3. development of actions for the improvement plan
aimed at addressing the gaps identified in the previous
phase;
4. Monitoring progress in the adoption of remedies.
The improvement actions highlighted by the process areincluded in the Group's Sustainability Plan and disclosureof the results of the analysis of perceived risk and gaps
is provided annually in the Group's Sustainability Report,
together with the progress made in the improvement
plans.

For further information, pleaserefer to the “Managing humanrights” chapter, especially the“Access to remedies” section
and the “Human Rights Content
Index”.

10. Violations of UN Global
Compact principles
and Organisation for
Economic Cooperation
and Development(OECD) Guidelines forMultinational Enterprises

SOCIAL AND
EMPLOYEE MATTERS

518

12. Unadjusted gender
pay gap

For 2022, the Women/Men Basic Salary Ratio is104.7% (2021 figure of 104.8%) and the Women/Men
Remuneration Ratio is 105.4% (2021 figure of 105.1%)

For further information, pleaserefer to the “Empowering
Enel people” chapter and to
the Sustainability Statement,“Empowering Enel people”
section13. Board gender diversity,
%

44,4%

For further details, please referto the “Sound governance”
chapter.

14. Exposure tocontroversial weapons(antipersonnel mines,
cluster munitions,chemical weapons andbiological weapons)

Indicator not applicable to Enel.

Sustainability Report 2022

44,4%

1

Letter to stakeholders

ISSUE

2

We empower sustainable progress

3

Materiality analysis

4

Our performance

2021 VALUE

Appendix

ADDITIONAL INDICATORS

2022 VALUE

1. Emissions of inorganic
pollutants

Indicator not applicable to Enel.

2. Emissions of air pollutants

For 2022, “SO2 emissions” amounted to 16,602 t (2021 figure of
15,615 t), “NOx emissions” amounted to 74,225 t (2021 figure of
78,846 t), “Dust emissions” (PM10) were 1,227 t (2021: 1,099 t) and“Hg emissions” were 0.08 t (2021: 0.05 t).
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section for details on“Emissions of ozone-depleting
substances”.

For 2022, “emissions of ozone-depleting substances” were 43
3. Emissions of ozone depletion kgCFC-11eq (2021 figure of 180 kgCFC-11eq).
In any case, note that the final indicator requested cannot be
substances
directly communicated by Enel, as it is calculated by the investor.

Si faccia riferimento al
Sustainability Statement: sec.
“Zero emissions target” perdettagli su “Emissioni di sostanze
nocive per l’ozono (Ozone
Depleting Substances)”

EMISSIONS

4. Investments in companies
without carbon emission
reduction initiatives
5. Breakdown of energy
consumption by type of nonrenewable sources of energy(TJ)

from non-renewable sources(TJ)

Coal (TJ)

ENERGYPERFORMANCE

5

Fuel oil (TJ)

Natural gas (TJ)

Diesel (TJ)

Uranium (TJ)

CHAPTER REFERENCE

Indicator not applicable to Enel.

-

1.053.083

206.450

35.848469.42558.486282.872-

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

1.044.714

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

141.528

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

34.787

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

549.312

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

48.482

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

270.605

Please refer to the Sustainability
Statement, “Zero emissions
ambition” section, and forfurther qualitative information,
to the “Conservation of natural
capital” chapter

Content Index

519

WATER, WASTE
AND MATERIALEMISSIONSGREEN
SECURITIES520

6. Water usage and recycling

For 2022, total “water withdrawals” amounted to 76.0 megaliters(2021 figure of 73.1 megaliters), while the total “percentage ofrecycled and reused water” was 0.15% (2021: 0.12%).
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

For further information, pleaserefer to the Sustainability
Statement, “Zero emissions
ambition” section, and to the“Conservation of natural capital”
chapter

7. Investments in companies
without water management
policies

Enel is constantly committed to progressively reducing thespecific need for water for its plants and assets, through theefficient use of water in existing thermal plants, the evolutionof the energy mix towards renewables, and the progressive
reduction of generation from fossil fuels. Starting this year, Enelhas renewed and relaunched its commitment to conserving water
resources by adopting a new target aimed at reducing specificwithdrawal of fresh water.

Please refer to the “Conservationof natural capital” chapter,“Responsible use of water”
section

8. Exposure to areas of highwater stress

Enel also pays particular attention to the vulnerability of theresource, by mapping and constantly monitoring all generationsites located in areas classified as water-stressed areas. Amongthe sites mapped, those defined as “critical” are those positioned
in water-stressed areas which procure significant volumes offresh water. For these sites, which are specifically thermoelectricand nuclear plants that use water resources for process andclosed-cycle cooling needs, water management methods andtheir process performance are constantly monitored, in order tominimize consumption and favor withdrawals from sources oflower quality or which are non-scarce (wastewater, industrial orsea water).

Please refer to the “Conservationof natural capital” chapter,“Responsible use of water”
section

9. Investments in companies
producing chemicals

Indicator not applicable to Enel.

10. Land degradation,desertification, soil sealing

Enel is promoting a circular approach to land management, inparticular through the reuse and redevelopment of brownfieldsites, as well as the repowering and lifetime extension of windfarms, in order to limit the use of soil.

11. Investments in companies
without sustainable land/
agriculture practices

Indicator not applicable to Enel.

12. Investments in companies
without sustainable oceans/seas practices

Indicator not applicable to Enel.

13. Non-recycled waste ratio

For 2022, the “% of total waste sent for recovery” was 84.39%(2021 figure of 85.30%).
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

For further details, please referto the “Conservation of natural
capital” chapter and to the
Sustainability Statement, “Zeroemissions ambition” section

14. Natural species andprotected areas

Protection of biodiversity is one of the strategic objectives of the“Enel Environmental Policy” and is regulated by a specific policy
adopted by Enel in 2015, the “Enel Biodiversity Policy”, renewedin 2023 following COP15. The policy defines the guidelines for all
the Group’s biodiversity protection initiatives and the principles
according to which they operate, aligned with the KunmingMontreal GBF.

Please refer to the “Conservationof natural capital” chapter

15. Deforestation

Enel is committed to conserving forests and, if deforestation
cannot be avoided, will reforest areas of equivalent value in linewith the principle of “No Net Deforestation”.

Please refer to the “Conservationof natural capital” chapter

16. Share of securities notcertified as green under afuture EU legal act setting up
an EU Green Bond Standard

Indicator not applicable to Enel.

Sustainability Report 2022

Please refer to the “Conservationof natural capital” chapter

1Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

1. Investments in companies
without workplace accident
prevention policies

Our Group's commitment in terms of health, safety and work is
set out in two documents (both signed by the CEO): “Declarationof Commitment to Health and Safety” and “Stop Work Policy”.
The former is based on several principles including compliancewith the law, adoption of the best standards; implementationand continuous improvement of the Workers’ Health and Safety
Management System in compliance with the international
For further details, please referstandard ISO 45001; promotion of information initiatives
to the “Occupational health andto spread and consolidate the culture of health, safety andsafety” chapter
organizational well-being. The latter, the “Stop Work Policy”,
provides that both employees and contractors are required tointervene promptly and stop any activity that may put their own orothers’ health and safety at risk.
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

2. Rate of accidents

For 2022, Total Recordable Injuries amounted to 809 (2021 figureof 1,055). For full disclosure of the types of injuries reported byEnel (for Enel people and subcontractors), please see the “Chapter
reference” column.
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor
based on the information provided in the balance sheet.

For further details, please referto the “Occupational healthand safety” chapter and to
the Sustainability Statement,“Occupational health and safety”
section.

3. Number of days lost to
injuries, accidents, fatalities
or illness

For 2022, the total days lost due to workplace injuries was 7,492(of which 1,968 to Enel people and 5,524 to subcontractors).
The figure does not take into account days lost to occupational
diseases.
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

For further details, please referto the “Occupational health andsafety” chapter.

4. Lack of a supplier code of
conduct

Our purchasing processes are based on pre-contractual andcontractual conduct geared towards mutual loyalty, transparency
and collaboration. The basis of our procurement processes isloyalty, transparency and collaboration, and we ask our suppliers
not only to guarantee the quality standards required, but also tocommit to adopting best practices in terms of human rights andof the impact of their activity on the environment. Indeed, there
are clear and specific references in terms of codes of conduct,
including our Policy on Human Rights, Code of Ethics, Zero
Tolerance of Corruption Plan, and global compliance programs.

For further information, pleaserefer to the “Sustainable supply
chain” chapter and to “Sound
governance – Values and pillarsof 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 established multiple access channels for reporting bypeople inside or outside the company, including:• a whistleblowing channel, available to internal and external
stakeholders, accessible via:
- web or toll-free number as indicated on the Enel Code of
Ethics webpage;- by letter to the address: Enel S.p.A. – Audit Function – Code of
Ethics. Via Dalmazia, 15 – 00198 Rome, ITALY;• various processes and tools available to communities in thearea of influence of our activities;• customer complaints or information channels (via email,website, toll-free number).

For further information, pleaserefer to the “Sound governance”
chapter – “Values and pillars ofcorporate ethics” section

6. Insufficient whistleblower
protection

The whistleblowing management process is regulated by
the “Management of anonymous and non-anonymous
whistleblowing” Policy, which guarantees anonymity andprotection against any form of retaliation.

For further information, pleaserefer to the “Sound governance”
chapter, in particular to
the “Code of Ethics” and“Stakeholder reports” sections,and to the “Human Rights
Content Index”

7. Incidents of discrimination(no.)

For further information, pleaserefer to the “Sound governance”
chapter, in particular to
In 2022, 4 violations were recorded relating to cases of
the “Code of Ethics” anddiscrimination at the workplace, in particular cases of harassment.
“Stakeholder reports” sections,and to the “Human Rights
Content Index”

8. Excessive CEO pay ratio (%)

For further information, pleaserefer to the WEF Content Index– “Dignity and equality section”,
and to the “Sound governance”
chapter, “Remuneration policy”
section.

SOCIAL AND
EMPLOYEEMATTERSFor 2022, the CEO pay ratio at Enel was 60% (2021 figure: 90%).
In any case, note that the final indicator requested cannot bedirectly communicated by Enel, as it is calculated by the investor.

Content Index521

Since 2013, Enel has adopted a Policy on Human Rights, approvedby the Board of Directors and updated in 2021 to take into
account changes in international frameworks and our operational,organizational and management processes. The policy leverages
the commitments set out in the various codes of conduct such
9. Lack of a human rights policy
as the Code of Ethics (adopted in 2002), the Zero Tolerance Plan
for Corruption and global compliance models, by strengthening
and expanding on their content. The policy sets out 12 principles,
divided into two broad themes: practices in the workplace andrelations with communities and society.

For further information, pleaserefer to the “Managing humanrights” chapter, in particular to
the “Our public commitment: thePolicy on Human Rights” section
and the “Human Rights Content
Index”.

10. Lack of due diligence

As required by the UN Guidelines and by the OECD Due Diligence
Guidance for Responsible Business Conduct, we have set up aprocess – codified in an internal procedure applicable at global
level – that, with reference to the entire value chain in the various
countries where we operate, aims to evaluate our procedures andoperational processes and define, if necessary, an improvement
plan to strengthen the systems that protect the principles set out
in the Policy on Human Rights.

For further information, pleaserefer to the “Managing humanrights” chapter, in particular to
the “Our Due Diligence process”
section and the “Human Rights
Content Index”.

11. Lack of processes andmeasures for preventing
trafficking in human beings

Since 2013, our commitment against all forms of humantrafficking has been formally set out in principle 2.1.1, “Rejectionof forced or compulsory labor and child labor” of our Policy on
Human Rights.

For further information, pleaserefer to the “Managing humanrights” chapter, and to the “Policyon Human Rights”, available on
the corporate website.

12. Operations and suppliers at
significant risk of incidents ofchild labor

Since 2013, our commitment against all forms of slavery andchild labor has been formally set out in principle 2.1.1, “Rejectionof forced or compulsory labor and child labor” of our Policy on
Human Rights. We believe that children and underage workers area risk category, which is why we pay close attention to respecting
their rights throughout the value chain of our activities. We reject
the use of child labor, as defined by the legislation in force inthe country where the activities are carried out. In any case, ourworkers are never younger than the minimum age laid down in
ILO Convention No. 138. Human resources management systems
and procedures therefore guarantee the absence of minors in theworkforce.

For further information, pleaserefer to the “Managing humanrights” chapter, and to the “Policyon Human Rights”, available on
the corporate website.

13. Operations and suppliers at
significant risk of incidents offorced or compulsory labor

Since 2013, our commitment against the use of any kind offorced or compulsory labor has been formally set out in principle
2.1.1, “Rejection of forced or compulsory labor and child labor”
of our Policy on Human Rights. 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, pleaserefer to the “Managing humanrights” chapter, and to the “Policyon Human Rights”, available on
the corporate website.

In 2022, no serious human rights violations were recorded
through the Group’s whistleblowing channel.

For further information, pleaserefer to the “Sound governance”
chapter – “Values and pillarsof corporate ethics” and“Stakeholder reports” sections

HUMAN RIGHTS

14. Number of identified casesof severe human rights issues
and incidents

ANTICORRUPTION
AND ANTIBRIBERY

522

In compliance with the 10th Global Compact principle, according
to which “companies are committed to combating corruption
in all its forms, including extortion and bribery”, Enel intends topursue its commitment to fighting corruption in all its forms –whether direct or indirect – by applying the principles expressed
15. Lack of anti-corruption and in the pillars of its Anti-Bribery Management System.
anti-bribery policies
Enel’s Anti-Bribery Management System (ABMS) is based on
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) and confirmed in the AntiBribery Policy adopted in compliance with international standard
ISO 37001:2016 (on anti-bribery management systems).

For further information, pleaserefer to the “Sound governance”
chapter – “Values and pillars ofcorporate ethics” and “Active
and passive fight against
corruption”

16. Cases of insufficient action
taken to address breaches ofstandards of anti-corruption
and anti-bribery

Ascertained violations relating to reports received through the
Ethics Channel are subject to disciplinary measures and/or
sanctions against the people responsible. In addition to reports
relating to the Code of Ethics, no other events were reported.

Please refer to the “Sound
governance” chapter – “Values
and pillars of corporate ethics”
and “Stakeholder reports”
sections

17. Number of convictions andamount of fines for violationof anti-corruption and antibribery laws

On the basis of the reports to the Ethical Channel received in
2022, no violations led to convictions or financial penalties forthe people involved. In addition to reports relating to the Code of
Ethics, no other events were reported.

Please refer to the “Sound
governance” chapter – “Values
and pillars of corporate ethics”
and “Stakeholder reports”
sections

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Human Rights Content Index
Our pledge to respect human rights is the guiding principle that permeates all our activities and it is fully integrated
into our corporate purpose and values, since we belong to the territory, and we are an essential element in the lives ofpeople, businesses, and society at large. With our commitment we are striving for sustainable progress, to make ourcompany and the communities in which we operate more prosperous, more inclusive and more resilient, without leaving
anyone behind.

ISSUE

PRINCIPLEDESCRIPTION

Employment
practices

Rejectionof forced orcompulsory
labor and childlabor

Reject of the use of any formof forced or compulsory labor,of any form of slavery andhuman trafficking and of child
labor

SDG

INTERNATIONALREFERENCE
STANDARDS• United Nations
Guiding Principles on
Business and humanrights• OECD guidelines
for multinational
enterprises• ILO Convention 29• United Nations Global
Compact principles

SUSTAINABILITY REPORT 2022:
CHAPTERS/PRAGRAPHS
Our strategy for sustainable progressMateriality analysis process andresults for 2022
Our commitment to continuous
improvement
Zero emissions ambition
Our commitment to a just transition:leaving no one behind
Empowering Enel people
Sustainable supply chain
Circular economy
Innovation
Digitalization
Sound governanceManaging human rights

Respect
for diversity
and nondiscrimination

Diversity, inclusion, equal
treatment and opportunity,
working conditions respectfulof personal dignity, creation ofa working environment where
people are treated fairly, valued
for their uniqueness and notdiscriminated or subject toharassment, commitment toa just energy transition foreveryone and attention toclients requests• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO Conventions
100, 111, 190• United Nations
Global Compact
principles

Freedom to form or take partin organizations aimed atdefending and promoting therights of people, respect of
their right to be represented
by unions or other forms ofrepresentation, collective
bargaining as the favored
instrument for setting
contractual conditions andregulating relations between
management and unions• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO Conventions 87,
98, 154• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to continuous
improvement
Zero emissions ambition
Clean electrification
Empowering Enel people
Sustainable supply chain
Engaging communities

Freedom of
associationand collective
bargaining

Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to continuous
improvement
Zero emissions ambition
Our commitment to a just transition:leaving no one behind
Empowering Enel people
Sustainable supply chain
Engaging communities

Content Index

523

ISSUE

PRINCIPLEDESCRIPTION

Employment
practices

Health, safety,
and well-being

Protection of health, safety
and psychological, relational,
and physical well-being ofindividuals; dissemination ofsuch culture to ensure thatworkplaces are hazard-free
and to promote behaviors
oriented towards work-life
integration

SDG

INTERNATIONALREFERENCE
STANDARDS• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO Conventions
155, 156, 187• United Nations
Global Compact
principles

SUSTAINABILITY REPORT 2022:
CHAPTERS/PRAGRAPHS
Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to a just transition:leaving no one behind
Our commitment to continuous
improvement
Empowering Enel people
Sustainable supply chain
Engaging communities
Occupational health and safety

Just andfavourable
working
conditions

Protection of the right toconditions that respect thehealth, safety, well-being
and dignity of individuals,
maximum working hours,
daily and weekly rest periods
and annual period of paid
leave, and fair remuneration
as well as equal pay for equal
work for men and women,
minimum compensation, andprofessional orientation andtraining• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO Conventions
100, 132, 155,
156,187• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to continuous
improvement
Zero emissions ambition
Our commitment to a just transition:leaving no one behind
Empowering Enel people
Sustainable supply chain
Engaging communities

Communities Environmentand society

Protection of the environmentand biodiversity, climate
action, and contribution
to a sustainable economic
development• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to continuous
improvement
Zero emissions ambition
Our commitment to a just transition:leaving no one behindConservation of natural capital
Empowering Enel people
Sustainable supply chain
Engaging communities
Circular economy
Innovation

524

Sustainability Report 2022

1

Letter to stakeholders

ISSUE

PRINCIPLE

Communities Respecting
and society
the rights ofcommunities

2

We empower sustainable progress

DESCRIPTION
Responsible community
relations based on theassumption that individual
conditions, economic
and social development,
and general well-beingof collectivity are strictlyconnected. This includes
conducting capital expenditure
in a sustainable manner,promoting cultural, socialand economic initiatives for
affected local and national
communities to advance social
inclusion through education,
training and access to energy.
Commitment to ensure that
products and services aredesigned to be accessible
for all.

Respecting therights of local
communities

Commitment to respecting
the rights of local communities
and to contribute to theireconomic and social growth
also through collaborations
with suppliers, contractors
and partners that contributeto the social and economic
development of thecommunities where we
operate.
This goes also through:promoting free, prior, andinformed consultation
activities and implementingsocial inclusion actions(local manpower, health andsafety training, developmentof local projects – alsoin partnership with localorganizations); taking into due
account the environmental
and social impact in thedesigning and constructionof our infrastructure projects;
requiring that private
security forces protecting
Group's personnel andassets in operating areas
act consistently with theapplicable national law andregulation and international
standards.

Respecting
the rights ofindigenous andtribal people

Specific commitment to pay
particular attention to themost vulnerable communities,
such as indigenous and tribal
peoples, in case of developing
new projects and to respect
the United Nations Declarationof the rights of Indigenous
Peoples.

3

SDG

Materiality analysis

4

INTERNATIONALREFERENCE
STANDARDS• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO Convention 169• United Nations
Global Compact
principles

Our performance5

Appendix

SUSTAINABILITY REPORT 2022:
CHAPTERS/PRAGRAPHS
Materiality analysis process andresults for 2022
Our strategy for sustainable progress
Our commitment to continuous
improvement
Zero emissions ambition
Our commitment to a just transition:leaving no one behind
Clean electrification
Empowering Enel people
Sustainable supply chain
Engaging communities
Conservation of natural capital
Circular economy

Content Index

525

ISSUE

PRINCIPLE

Communities Integrity: zeroand society
tolerance ofcorruption

PrivacyCommunication

526

DESCRIPTIONSDG

INTERNATIONALREFERENCE
STANDARDSSUSTAINABILITY REPORT 2022:
CHAPTERS/PRAGRAPHS

Reject of corruption in all its
forms, both direct and indirect,
since it is one of the factors
undermining institutions anddemocracy, ethical values
and justice, as well as thewell-being and developmentof society.

• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022

Respect of the confidentiality
and right to privacy of our
stakeholders and to use
correctly information anddata relating to the people
working in our organization,
to our customers and to any
other stakeholder; processingof data in compliance withthe fundamental rights andthe rights and principles
recognized in law, notably
respect for private and family
life, home location details andcommunications, personal
data protection, freedomof thought, conscience andreligion, freedom of expression
and information• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• ILO
Recommendation
on ''Protection ofworkers' personal
data''• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022

Commitment to ensure that
institutional and commercial
communications are nondiscriminatory and arerespectful of different cultures,
while also not adversely
affecting the most vulnerable
audiences, such as children
and the elderly.

• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• United Nations
Global Compact
principles

Materiality analysis process andresults for 2022

Sustainability Report 2022

Our strategy for sustainable progress
Our commitment to continuous
improvement
Sound governanceOur strategy for sustainable progress
Our commitment to continuous
improvement
Clean electrification
Empowering Enel people
Sustainable supply chain
Sound governanceOur strategy for sustainable progress
Our commitment to continuous
improvement
Clean electrification
Sustainable supply chain
Engaging communities

1

Letter to stakeholders

ISSUE

PRINCIPLE

Human rights Public
governancecommitment

Due diligenceof themanagement
system2

We empower sustainable progress

DESCRIPTION

Transparency

SDG

Materiality analysis

4

Our performance

INTERNATIONALREFERENCE
STANDARDS

5

Appendix

SUSTAINABILITY REPORT 2022:
CHAPTERS/PRAGRAPHS

Adoption of a human rights
policy• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• United Nations
Global Compact
principles

Our governance of sustainability

Identification, prevention andmitigation of the potential
negative effects caused bybusiness operations• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• OECD Due diligence
Guidance for
Responsible
Business Conduct

Our governance of sustainability• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• OECD Due diligence
Guidance for
Responsible
Business Conduct• United Nations
Global Compact
principles

Our governance of sustainability• United Nations
Guiding Principles
on Business andhuman rights• OECD guidelines
for multinational
enterprises• OECD Due diligence
Guidance for
Responsible
Business Conduct

Our governance of sustainability

Reporting to Control and Risk
Committee and to Corporate
Governance and Sustainability
Committee about theimplementation of the due
diligence process

Access to
remedy3

Access to specific grievancechannels also at local level

Annual reporting, within
the Sustainability Report,of the performance on thecommitments undertaken
through the human rights
policyManaging human rights

Managing human rights

Sound governanceManaging human rights

Sound governanceManaging human rights

Content Index

527

Our position on and commitment
to the European Taxonomy
Enel welcomes the development of the EU Taxonomy
Regulation, as it provides a standardized, science-basedclassification system to identify environmentally sustainable economic activities. The EU Taxonomy Regulation acts
as an important enabler to promote sustainable investments and accelerate the decarbonization of the European economy, while at the same time creating reliability andtransparency for investors and supporting companies inplanning the Net-Zero transition.
We are committed to reporting on the implementation of
Article 8 of the European Taxonomy Regulation 852/2020
and of the Delegated Act which further specifies the content, methodology and presentation of information to be
dis-closed by both financial and non-financial companies.
Concerning the Climate Delegated Act, which lays out
the criteria for verifying the contribution to climate mitigation and adaptation, we welcome the different thresholds defined in the EU Taxonomy Regulation on the basisof 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 climate change mitigation
objectives established for most power generation technologies, in that it stems from a solid process based on arobust scientific foundation.
However, there are some activities that, although notcovered under the EU Taxonomy Regulation, are criticalto promoting the well-being of citizens, especially in the
short and medium term, while contributing to the sustainable development the long term.
As regards the energy industry, there are some important sustainability-related issues that the European Commission did not consider when developing the technicalscreening criteria, as they were outside the main scope of

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the EU Taxonomy Regulation. These included energy security, grid reliability and the energy transition, all of which
are critical to Europe’s well-being but which are appropriately addressed by other policies, funds and regulations at
EU and Member State level.
The EU Taxonomy Regulation is still in a developmental
stage, and a number of important Delegated Acts are still
being finalized at the time of publication of this Sustainability Report. These include acts that will detail the criteria for the remaining four objectives (sustainable use andprotection of water and marine resources, transition toa circular economy, pollution prevention and control andprotection and restoration of biodiversity and ecosystems), as well as those that will identify economic activities
that do not have a significant harmful impact on environmental sustainability and those that do. Completion of theentire regulatory process should ensure that all globally
recognized economic activities are considered, thereby
reducing current uncertainties regarding implementationof the process itself.
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 theCompany’s sustainable financial instruments. With this important move forward, Enel reinforces the role of the Taxonomy as a driver to promote sustainable investment decisions and show how sustainability can be fully integrated
into the financial landscape.
Enel holds its annual Capital Markets Day to align its capital allocation with the EU Taxonomy set out in its Business
Plan. In particular, in 2022 Enel announced a target in excess of 80% Capex alignment for the period 2023-2025
as part of its contribution to climate mitigation.

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Our implementation process

1

2

3

4

5

Identification ofeligible economic
activities

Analysisof substantial
contribution

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

Verification ofminimum social
safeguards

Calculationof financial
metrics

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, we initiateda process, articulated in five steps, to analyze the applicability of the EU Taxonomy Regulation throughout the entire
value chain and in all countries where we operate.
1. Identification of eligible economic activities: we haveidentified all activities within the Group’s portfolio thathave been included both in the Climate Delegated Act
and the Complementary Delegated Act. The process
was conducted by taking into consideration the climatechange mitigation objective only, which is our mostmaterial objective among the six objectives identified
in the EU Taxonomy Regulation, also due to the lack ofreliable financial data in our accounting and reporting
systems to carry out a comprehensive analysis of Enel’scontribution to climate adaptation objective. However,climate adaptation has been analyzed from the do no
significant harm perspective, while further information
on Enel’s climate adaptation measures can be found in
the “Zero emission ambition” chapter.
2. Analysis of substantial contribution: eligible activities
identified in the previous stage were analyzed in detailfor their compliance with the specific technical screening criteria established with regard to 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:
a. 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 and nuclear: during July 2022, the EU Parlia-

ment and Council have approved the EU Commission’s proposal for including nuclear and gas in
the EU Taxonomy, allowing investments in theseenergy sources to qualify as sustainable, under aset of strict criteria defined by the Commission
previously. Based on the Complementary Delegated Act (CDA), our approach is the following:– gas: the potential compliance with the threshold of 100 gCO2/kWh that applies also for thistechnology has been analyzed in all of our gas
power plants, while we have also checked thepotential compliance with the alternative criteria set out in the delegated act for electricity
production from gas;
– nuclear: we have analyzed the eligibility of thethree different activities related to electricity
production from nuclear identified in the delegated act according to our nuclear businessin 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 apower 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 independent third parties.
b. Analysis at country, region and system level for thetransmission and distribution of electricity. Compli-

Our position on and commitment to the European Taxonomy

529

ance with the following technical screening criteria
was analyzed in all eight 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 ona life cycle basis in accordance with electricity
generation criteria, over period 2016-2020 (datamade available by national authorities over a rolling five-year period prior to the preparation of the2021 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 inaccordance with electricity generation criteria, in
the period 2017-2021.
Infrastructure dedicated to creating a direct connection or expanding an existing direct connection
between a substation or network 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 the 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.
d. Sourcing analysis for power retail activities. Powerretail activity is currently no explicitly considered in
the Climate Delegated Act, hence it has not been included in the taxonomy alignment calculation. However, considering the key role that this activity playsin the energy transition towards a zero emission
economy, particularly when it is developed by integrated utilities such as Enel, we have carried out anadditional analysis to determine its positive impact
on the overall results if this activity would be correctly represented in the Climate 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 each type oftechnology (for power generation), region (for transmission and distribution) and product cluster level (for activities of the Enel X Global Retail Business Line), adapted to the specific requirements set out for each of the530

Sustainability Report 2022

following environmental objectives:• 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
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, and emissions 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: it has
been verified that the Group’s human rights due diligence process covers the entire perimeter of Enel.
Our commitment to respect human rights is groundedin the United Nations framework “Protect, Respect andRemedy”, set out in the guiding principles on businessand human rights, and in the OECD Guidelines for Multinational Enterprises.
Since 2013, we have adopted a specific human rights
policy reflecting our commitment, which was updated
in 2021 to take into account the evolving internationalframeworks of reference and our 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.

1

Letter to stakeholders

2

We empower sustainable progress3

For our approach to human rights, phases in the due
diligence process, and communication of findings and(possible) remediation plans, please see the chapter

Materiality analysis

4

Our performance5

Appendix“Managing human rights”.
The following table illustrates our approach to the minimum safeguards criteria.

Minimum safeguards criteria• The main reference international standards underpinning our commitment are the United Nations “Protect,
Human rights•

Respect and Remedy” framework outlined in its Guiding Principles on Business and Human Rights and theOECD Guidelines for Multinational Enterprises. Our commitment is transparently reflected in a specific Policy on
Human Rights developed and adopted as early as 2013 and refreshed in 2021.
We have committed to monitor the implementation of the policy through a specific due diligence(1) process
defined based on the UN Guidelines and by the OECD Due Diligence Guidance for Responsible BusinessConduct. For more details refer to the section “Managing human rights”.

• As reflected in our Policy on Human Rights, we reject corruption in all its forms, both direct and indirect, since
Corruption•

we believe it is one of the factors undermining institutions and democracy, ethical values and justice, and thewellbeing and development of society.
To this end, we reiterate our commitment to fight corruption through a plan called “Zero Tolerance ofCorruption” which is one of the pillars on which our Anti-bribery Management System is grounded and in ourGroup Code of Ethics.

• We have set out a tax strategy at Group level to ensure a fair, responsible and transparent taxation, with the aim
Taxation

Fair competitionof guaranteeing consistent and uniform tax management across all entities belonging to the Group. Our 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”.

• We promote the principle of fair competition and refrain from collusive or predatory conduct and abuses of adominant position, as reflected in our Group Code of Ethics.

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 prox-(1)

ies 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).

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 involvedin human rights violations. This implies “identifying, preventing, mitigating and reporting” potential negative impacts deriving from the Company’s businessactivities.

Our position on and commitment to the European Taxonomy

531

Through this process, Enel classified all economic activities
along its value chain according to the following three cat-

Eligible-aligned

Eligible-notalignedNot eligible

Eligible-aligned: this 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-not 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.

Not 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 have therefore 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 “noteligible” makes it impossible to achieve a business modelthat is fully aligned with the criteria of the EU Taxonomy

532

egories: taxonomy eligible and aligned, taxonomy eligible
but not aligned, and taxonomy not eligible.

Sustainability Report 2022

Regulation, even though these not eligible activities might
not cause any harm to the EU’s environmental objectives.

1

Letter to stakeholders

2

We empower sustainable progress

Europeantaxonomy

3

4

Our performance5

Appendix

ELIGIBLE

AlignedNot-aligned• Solar and wind
• Hydro (99.6%)• Geothermal• RES Storage
Mapping inaccordancewith Climate
Delegated
Act andComplementary
Delegated Act

Materiality analysis

Hydro (0.4%)• New connections

between a substation
or grid and a generation
plant with greenhousegas intensity overthreshold of
100 gCO2eq/kWh

Distribution in Europe,
Brazil, Chile and Peru
without new connections
between a substation
or grid and a generation
plant with greenhouse gas
intensity over threshold of
100 gCO2eq/kWh• Distribution in Argentina
and Colombia

Not eligible
Trading
Retail sale of poweror gas to end users
Financial services, generalservices and otherunmeasured productclusters• Coal• Nuclear• Fuel-oil and OCGT
(1)

Gaseous fossil fuels (CCGT)

Smart Lighting, e-Bus,
Energy Efficiency, Home,
Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
Battery Energy Storage(2)

e-Mobility(1)

The operation of our 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 not eligible under the EU Taxonomy Regulation.

In 2022, we updated our eligibility analysis according to
the process and the new definition for the three categories described above and pursuant to the final version of
the Climate Delegated Act published in the Official Jour-nal of the European Union in December 2021, while also
the Complementary Delegated Act publishes in the Official
Journal of the European Union in July 2022. The following
three tables summarize the results of this analysis.

Our position on and commitment to the European Taxonomy

533

Eligible-aligned activities
Business
Line

Activity

Description of the activity (according
to the EU Taxonomy Regulation)

Electricity
generation fromwind power(4.3) - Construction or operation of electricity
generation facilities that produce electricity
from wind power.

Condition aligned with requirements
100% of the installed capacity is eligible andaligned 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 andaligned 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 fromhydropower(4.5) - Construction or operation of electricity
generation facilities that produce electricity
from hydropower.

Powergeneration

99.3% of the installed capacity is eligible andaligned 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 witha 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,water and biodiversity;
it complies overall with minimum social
safeguards.

•••

Electricity
generation fromgeothermalenergy(4.6) - Construction or operation of electricity
generation facilities that produce electricity
from geothermal energy.

100% of the installed capacity is eligible andaligned because:
it makes a substantial contribution to climatechange mitigation, as all power plants have alife 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 andaligned 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.

•
•
•

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Sustainability Report 2022

1

Letter to stakeholders

BusinessLine2

We empower sustainable progress

Activity
Transmission anddistribution ofelectricity

3

Materiality analysis

Description of the activity (according
to the EU Taxonomy Regulation)(4.9) - Construction and operation oftransmission systems that transport theelectricity on the extra high-voltage and highvoltage interconnected system. Construction
and operation of distribution systems thattransport electricity on high-voltage, mediumvoltage and low-voltage distribution systems.

Enel Grids

4

Our performance5

Appendix

Condition aligned with requirements
The DSOs in Italy, Romania, Spain, Brazil, Chile andPeru are aligned in that:they make a substantial contribution to climatechange mitigation, in particular:– the DSOs in Italy, Romania and Spain are partof the European interconnected system;– the DSOs in Brazil, Chile and Peru belong toelectricity 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 fromthese 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 goals;
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.

•••

Enel X
Energy efficiency(City)

Installation, maintenance and repair of energy
efficiency equipment (7.3) - Addition of insulation
to existing envelope components, such asexternal walls (including green walls), roofs(including green roofs), lofts, basements andground floors (including measures to ensure
air-tightness, measures to reduce the effects ofthermal bridges and scaffolding) and products
for the application of the insulation to thebuilding envelope (including mechanical fixings
and adhesive) (7.3 a) - Replacement of existing
windows with new energy efficient windows (7.3b) - Replacement of existing external doors withnew energy efficient doors (7.3 c) - Installation
and replacement of energy efficient light sources(7.3 d) - Installation, replacement, maintenanceand repair of heating, ventilation and airconditioning (HVAC) and water heating systems,
including equipment related to district heating
services, with highly efficient technologies (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 goal;
it complies overall with minimum social
safeguards.

•••

Our position on and commitment to the European Taxonomy

535

Business
Line

ActivityHome

Description of the activity (according
to the EU Taxonomy Regulation)
Installation, maintenance and repair of energy
efficiency equipment (7.3) (7.3 a-e). For the detail,see the points already discussed above.

Vivi Meglio
Unifamiliare(Home)

Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy performanceof buildings (7.5) - Installation, maintenance andrepair of zoned thermostats, smart thermostat
systems and sensing equipment, including.
motion and day light control (7.5 a).

Condominium

Installation, maintenance and repair ofrenewable energy technologies (7.6) Installation, maintenance and repair of solar
photovoltaic systems and the ancillary technicalequipment (7.6 a).

Customer Insight(Industry)

Professional services related to energy
performance of 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 and pollution goals;
it complies overall with minimum social
safeguards.

•••

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 goal;
it complies overall with minimum social
safeguards.

•••

Enel X

Distributed energy Installation, maintenance and repair of energy(Industry)
efficiency equipment (7.3) - Installation andreplacement of energy efficient light sources (7.3d) - Installation, replacement, maintenance andrepair of heating, ventilation and air-conditioning(HVAC) and water heating systems, including
equipment related to district heating services,with highly efficient technologies (7.3 e) Installation, maintenance and repair ofrenewable energy technologies (7.6) - Installation,
maintenance and repair of solar photovoltaic
systems and the ancillary technical equipment(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 goals;
it complies overall with minimum social
safeguards.

Battery energy
storage (Industry)

Installation, maintenance and repair ofrenewable energy technologies (7.6) Installation, maintenance and repair of thermal
or electric energy storage units and theancillary 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 goal;
it complies overall with minimum social
safeguards.

Installation, maintenance and repair ofcharging stations for electric vehicles inbuildings (and parking spaces attached tobuildings) (7.4) - Infrastructure for personal
mobility, cycle logistics (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.

Electric mobility

e-Mobility

536

Condition aligned with requirements

Sustainability Report 2022

•
•
•

•
•
•
•
•
•

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Letter to stakeholders

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We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Eligible-not aligned activities
Business Line

Activity

Description of the activity (according
to the EU Taxonomy Regulation)

Eligible but not aligned condition

Electricity generationfrom hydropower(4.5) - Construction or operation ofelectricity generation facilities that
produce electricity from hydropower.

0.7% 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 generationfrom fossil gaseous
fuels(4.29) - Construction or operationof electricity generation facilities
that produce electricity from fossil
gaseous fuels.

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.

Power
Generation

It refers to thermal power plants with
CCGT technology.
Transmission anddistribution ofelectricity

Enel Grids

Transmission and distribution ofelectricity (4.9) - Construction andoperation of transmission systems
that transport the electricity on theextra 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.

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 DSOs in Argentina and Colombia have a GHG
intensity in excess of 100 gCO2eq/kWh, and belong
to electrical systems where less 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.

Not eligible activities
Business Line

Activity

Description of the activity

Generation of electricity Construction and operation of
from coal and liquid
coalfired and liquid fossil fuel power
fossil fuels
plants.

MarketEnel X

The activity has been excluded from the EU
Taxonomy Regulation as it is considered very harmful.

It refers to thermal power plants thatcombine fuel-oil and gas (OCGT)
technologies, for which a further
breakdown is not feasible.

Power
generation

Trading

Not eligible condition

Electricity generated by
nuclear power plants

Construction 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 and gas sales(end customers)

Retail sales of electricity and gas byGroup companies.

This activity is not considered in the Climate
Delegated Act.

Other activities

Financial services, hardware andsoftware, insurance policies and othergeneral services.

These activities are not considered in the Climate
Delegated Act.

Our position on and commitment to the European Taxonomy

537

Process for calculating the financial metrics
During the process of calculating the financial metrics, thefollowing criteria were adopted and the following considerations 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 the ordinary gross operating profit to the same extent as otherbusiness 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 of eligible alignment (such as not aligned hydroelectric power
generation or infrastructure considered eligible but notaligned among eligible and aligned distribution network
systems). For example, the following proxies were used:– hydroelectric: eligible-not aligned hydroelectric power plants were excluded by considering their output
multiplied by the average turnover per unit in theyears 2021 and 2022. This approach was also extended to Capex, Opex and EBITDA;– distribution: new connections between a substation
or grid and a 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 turnover per unit (k€/ MW) for
the years 2021 and 2022. This approach was only applied to turnover and Capex.

538

Sustainability Report 2022

• Aggregate financial data in the report refer to the “sector” level and include items related to third parties andinter sectorial exchanges.

• Financial metrices were represented by considering allelectricity and gas sales as “not eligible”. An additional
analysis has been performed in the last section of thechapter to provide a view of the results if part of thisbusiness activity would be considered aligned to the EU
Taxonomy.

• The figures for 2021 have been restated to integrate thefollowing methodological changes:– Electricity generation from fossil gaseous fuels: it
has been considered as eligible-not aligned after applying the criteria set out in the Complementary Delegated Act (previously represented as not eligible).
– Transmission and distribution of electricity: it has
been performed a reassessment of the eligibility status of the distribution activity in Colombia to take into
account updated data from the national electricity
system concerning the new renewable capacity built
in the last five years, causing a change in the statusfrom eligible-aligned to eligible not-aligned. In addition, there have been implemented minor adjustments on the criteria to identify the infrastructure
dedicated to creating a direct connection or expanding an existing direct connection between a substation or network and a power production plant that ismore greenhouse gas intensive than 100 gCO2eq/kWh
measured on a life cycle basis.
– Electricity retail: it is now considered not eligible(previously represented as eligible) as it has not been
explicitly mentioned in the Climate Delegated Act.
– Enel X Global Retail: cogeneration from fossil gaseous
fuels (CHP), within the distributed energy solutions, isnow considered eligible-not aligned after applying
the criteria set out in the Complementary DelegatedAct (previously considered as not eligible).
– Capex: they now cover costs that are accounted
based on IFRS 16 Leases, paragraph 53, point (h), as
requested by the Commission Delegated Regulation(EU) 2021/2178.

1

Letter to stakeholders

2

We empower sustainable progress

3• 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 in the
total turnover/Capex/EBITDA of the Group (except for
Opex, the total of which refers only to the type of costs
required by the taxonomy). The share of turnover/Capex/

Materiality analysis

4

Our performance5

Appendix

Opex/EBITDA of each individual economic activity contributes to achieving climate change mitigation targets.
This is the only objective of the EU Taxonomy Regulation alignment analysis shown in the tables due to lack ofcomprehensive financial information in Enel’s accounting system, while the criteria for the other four environmental objectives are not yet available.

Statement on the alignment of Enel’s businessto the EU Taxonomy Regulation
Overall results
The high level of alignment of our economic activities with
the EU Taxonomy Regulation in 2022, made possible bytheir substantial contribution to the climate change mitigation objective while respecting the principle of Do No
Significant Harm (DNSH) to other environmental objective
and observing the minimum social safeguards, is shown
below.

EBITDA (ordinary)2022• 56.7% of the ordinary gross operating profit (EBITDA) in

2022 relates to business activities aligned with the EU
Taxonomy Regulation, compared to 63.9% in 2021.(2) The
EBITDA percentage of taxonomy eligible and aligned
businesses decreased in 2022 compared to 2021, primarily due to changes in revenue (see details below).

56.7%

Eligible-aligned
Eligible-not aligned
Not eligible

€19.7

27.7%

billion

15.6%(2) 2021 figure has been restated based on methodological changes mentioned in the section “Process for calculating the financial metrics”.

Our position on and commitment to the European Taxonomy539

• 21.4% of turnover in 2022 relates to business activitiesaligned with the EU Taxonomy Regulation, compared to33.9% in 2021.(3)There is a high increase in absolute terms in turnover inthe year 2022 compared to the year 2021. This increase
has been experienced more in non-aligned activities such

Turnover2022

as power generation from gaseous fuels and non-eligible
activities such as trading and power and gas commercialization and electricity generation from coal, mainly due tothe market situation with high prices and higher thermal
production. So, the turnover aligned decrease 12%.

21.4%

Eligible-aligned
Eligible-not aligned
Not eligible€143.0

7.9%

billion70.7%• 81.9% of capital expenditure (Capex) in 2022 relates tobusiness activities aligned with the EU Taxonomy Regulation, compared to 82.0% in 2021.(3)The actual 2022 Capex for eligible-aligned activities is 4.5%
higher than the Capex planned for 2022 in the 2022-2024
Strategic Plan for the same activities, mainly due to higher

Capex
2022

81.9%

investments in absolute terms in eligible-aligned activities
than planned (more than 0.5 billion euros), and also to theadjustments made in the EU taxonomy accounting process such as the addition of the costs accounted basedon IFRS 16 Leases, paragraph 53, point (h), which were notconsidered in the 2022-2024 Strategic Plan.
Eligible-aligned
Eligible-not aligned

11.8%

Not eligible

6.3%

€15.1
billion(1)(1)

Also includes the increases
in assets deriving from leasing
operations (for 0.6 billion euros).

(3) 2021 figure has been restated based on methodological changes mentioned in the section “Process for calculating the financial metrics”.

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We empower sustainable progress3• 66.9% of operating expenses (Opex) in 2022 relates tobusiness activities aligned with the EU Taxonomy Regulation, compared to 60.8% in 2021.(4)Opex (ordinary)2022

Materiality analysis

4

Our performance5

Appendix

The percentage of Opex of taxonomy eligible and aligned
activities increases in 2022 compared to 2021, primarily
due to higher maintenance costs incurred in renewableenergy production and taxonomy-aligned distribution activities.

66.9%

Eligible-aligned
Eligible-not aligned
Not eligible

20.3%

€1.1
billion(1)

12.8%
(1)

Only expenses required by the taxonomy.

(4) 2021 figure has been restated based on methodological changes mentioned in the section “Process for calculating the financial metrics”.

Our position on and commitment to the European Taxonomy

541

Overall results with power retail
activities view
The EU Taxonomy Climate Delegated Act has not explicitly included the segment referred to retail power sales(with NACE code D35.1.4), deducting that it does not provide a substantial contribution to climate change mitigation. Nevertheless, retail power constitutes a fundamental
segment of the power value chain. The exclusion of suchactivity from the definition of a sustainable power systemhinders the key role of the EU market liberalization and ultimately the efforts and value of a decarbonized end use
energy consumption.
Furthermore, electrification, powered by renewable energy, is the most efficient and cost-effective solution to
tackle climate change as it is clean, affordable, and highperforming, as well as being the only path for a truly clean
energy system. Nevertheless, sustainable electrification ofend energy uses requires not only clean technologies in
power generation, but also power retail companies to offer renewable electricity to end customers to satisfy theirenergy 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 acOverall results with power retail view

tivities. 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 operate
in the power production and power retail segments withdifferent companies within the same Group, the businessmodel is run following a comprehensive and unique view ofthe whole power value chain.
Therefore, we present here an additional view of the overall
results considering the power retail activity as eligible anddetermining its alignment by applying the same criteriathat exist for power production. To this end, we have reliedon the Guarantees of Origin instruments available in Italy
and Spain, since they provide transparency to consumers
about the proportion of electricity that retailers sourcefrom renewable generation, thus it meets the existing EU
Taxonomy criteria referred to power production activities.
Consequently, turnover from power sales was calculated
considering the quantity of power sold at retail level byGroup companies in Italy and Spain using Guarantees ofOrigin (based on data from national authorities), applying
the average turnover per unit. This approach has also been
adopted for Capex, Opex and ordinary gross operating
profit (EBITDA). To avoid double counting, the eligible turnover per sector is net of inter-sectorial exchanges (relations between Enel Green Power, Enel Grids and Retail).

Unit

2022

2021

- Eligible-aligned

%

57.6

67.0

- Eligible-not aligned

%

19.2

18.5

- Not eligible

%

23.2

14.5

millions of euro

19,683

19,210Ordinary gross operating margin (EBITDA)

Total
Turnover “Revenue”- Eligible-aligned

%

30.2

40.4

- Eligible-not aligned

%

34.2

35.5

- Not eligible

%

35.6

24.1

millions of euro

143,009

88,006- Eligible-aligned

%

83.0

82.7

- Eligible-not aligned

%

9.2

9.6

Total
Capital expenses (Capex) “Investments”- Not eligible

%

7.8

7.7

millions of euro

15,088

13,831- Eligible-aligned

%

66.9

61.1

- Eligible-not aligned

%

14.2

15.7

- Not eligible

%

18.9

23.2

millions of euro

1,050

1,029

Total
Operating expenses (Opex)

Total

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3

Materiality analysis

4

Our performance5

Appendix

Detailed results
The following tables are represented according to what is required by Article 8 of EU Regulation 852/2020, therefore considering the activity of electricity sales as “not eligible”.
EBITDA (ordinary)
DNSH criteria(“Do No Significant Harm”)

Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2022

Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2021

Enabling activity

Transitional activity

Electricity generation fromhydropower

Climate change
mitigation(5)4.1

Biodiversity andecosystems(4)Electricity generation using
solar photovoltaic technology

Pollution(4)2,094

Circular economy(4)4.3

Water and marine
resources(4)Electricity generation fromwind power

Climate change
adaptation(4)millions of
euro

Climate change
mitigation(3)Taxonomy
Code

Economic
activities

Category(8)Proportion of ordinary
gross operating profit(EBITDA)(2) 2022

Ordinary gross operating
profit (EBITDA)(1) 2022

Substantial contribution criteria

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

A.1 Environmentally sustainable
activities (taxonomy-aligned)

10.6 100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

10.6

7.3

591

3.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

3.0

2.0

4.5

1,178

6.0

99.4 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

6.0

14.4

Electricity generation fromgeothermal

4.6

-139

-0.7 100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

-0.7

1.2

Storage of electricity

4.10

0

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

Y

n.a.

Y

Y

0.0

0.0

Transmission and distributionof electricity

4.9

7,137

36.3 92.5 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

Y

Y

Y

36.3

37.6

7.3 d

91

0.5

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a. Y

0.5

0.4

Urban and suburban transport,
road passenger transport
6.3 a(Enel X - e-Bus)

37

0.2

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

Y

n.a. Y

0.2

0.1

1

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a. Y

0.0

0.0

202

1.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a. Y

1.0

0.6

7

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a. n.a. n.a. Y

0.0

0.1

46

0.2

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a. n.a. n.a. Y

0.2

0.5

Installation, maintenance andrepair of energy efficiency
equipment

E(Enel X - Smart Lighting)Installation, maintenance andrepair of energy efficiency
equipment

7.3 a-e(Enel X - Energy Efficiency)
7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.5 Installation, maintenanceand repair of instruments
and devices for measuring,
7.3 a-e;regulation and controlling
7.5 a;
energy performance of
7.6 abuildings
7.6 Installation, maintenanceand repair of renewableenergy technologies(Enel X - Home/Vivi Meglio
Unifamiliare)
Professional services related
to energy performance ofbuildings

9.3(Enel X - Customer Insight)
Individual renovation measuresconsisting in installation,
maintenance or repair of
7.3 (a-e)energy efficiency equipment(Enel X - Condominium)

Our position on and commitment to the European Taxonomy

543

DNSH criteria(“Do No Significant Harm”)

Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2022

Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2021

Enabling activity

Transitional activity

Y/N

%

%

E

T

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a. Y

0.1

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a. n.a. n.a. Y

0.0

0.0

-0.5 100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

-0.5

-0.3

56.7

63.9

Pollution(4)Y/NCircular economy(4)Y/N

Water and marine
resources(4)Y/NClimate change
adaptation(4)Y/NClimate change
mitigation(3)Y/N

Proportion of ordinary
gross operating profit(EBITDA)(2) 2022

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

Y/N

%

%

%

%

%

%

12

0.1

7.6 f

2

0.0

6.13;
7.4

-94

7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.6 Installation, maintenance 7.3 d, e;
7.6 a
and repair of renewable

Category(8)%millions ofeuro

Taxonomy
Code

Economic
activities

Ordinary gross operating
profit (EBITDA)(1) 2022

Substantial contribution criteriaenergy technologies(Enel X - Distributed Energy)
Installation, maintenance andrepair of renewable energy
technologies(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility
7.4 Installation, maintenanceand repair of charging
stations for electric vehicles inbuildings (and parking spaces
attached to buildings)

Y

Y

Y

Y

(e-Mobility)
Ordinary EBITDA ofenvironmentally sustainable
activities (Taxonomy-aligned)(A.1)

11,165 56.7 95.0 0.0 n.a. n.a. n.a. n.a.

A.2. TAXONOMY ELIGIBLE-NOTALIGNED ACTIVITIES

A.2 Taxonomy-eligible but notenvironmentally sustainable
activities (not taxonomyaligned activities)

Electricity generation fromhydropower

4.5

-7

0.0

0.0

0.1

Transmission and distributionof electricity (Argentina,
Colombia and newconnections between asubstation and power plant>100gCO2eq/kWh)

4.9

576

2.9

2.9

2.0

Electricity generation fromfossil gaseous fuels (CCGT)(9)

4.29

2,492

12.7

12.7

6.1

Ordinary EBITDA oftaxonomy-eligible but notenvironmentally sustainable
activities (not taxonomyaligned activities) (A.2)

3,061

15.6

15.6

8.2

Total (A.1 + A.2)

14,226 72.3

72.3

72.1

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Materiality analysis

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Appendix

DNSH criteria(“Do No Significant Harm”)

Substantial contribution criteria

Taxonomy
Code

Climate change
mitigation(3)Climate change
adaptation(4)Water and marine
resources(4)Circular economy(4)Pollution(4)Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2022

Taxonomy-aligned
proportion of ordinary
gross operating profit(EBITDA)(2) 2021

Enabling activity

Transitional activity

Category(8)Proportion of ordinary
gross operating profit(EBITDA)(2) 2022

Ordinary gross operating
profit (EBITDA)(1) 2022

4

millions of
euro

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

Electricity generation from
coal

n.a.

1,297

6.6

Electricity generation from
nuclear

n.a.

651

3.3

Electricity generation fromfuel-oil and OCGT(10)

n.a.

-415

-2.1

Enel X (only activities not
eligible)

n.a.

273

1.4

Trading activities (Energy sales- wholesale)

n.a.

2,282

11.6

Market (Gas sales - end
customer)

n.a.

151

0.8

Market (Power sales - end
customer)

n.a.

885

4.5

Services, Holding & Others

n.a.

-167

-0.9

Elisions and adjustments

n.a.

Economic
activities

B. TAXONOMY-NOT-ELIGIBLE ACTIVITIESB. Taxonomy-not-eligible
activities

500

2.5

Ordinary EBITDA oftaxonomy-not-eligible
activities (B)

5,457

27.7

Total (A + B)

19,683 100.0(1) Ordinary gross operating profit (EBITDA): it refers to the absolute amount of EBITDA from each single economic activity, allocated according to its eligibility condition. If the same activity is reported both in A.1 and A.2 or B, the figure reported in each single field reflects the proportion of the activity thatsatisfies the eligibility conditions established in A.1, A.2 or B respectively.
(2) Proportion of ordinary gross operating profit (EBITDA): the proportion of the EBITDA of each single economic activity from total Group EBITDA.
(3) Climate change mitigation: it refers to the proportion of EBITDA from each economic activity that contributes to climate change mitigation.
(4) Not applicable objectives: no substantial contribution criteria have been defined for this objective before the release of the 2022 Sustainability Report.
(5) DNSH - Climate change mitigation: it is not applicable as the analysis of total substantial contribution criteria has been performed for climate change
mitigation objective exclusively.
(6) DNSH: it details whether the DNSH criteria for each environmental objective is met in each single economic activity that has been reported (yes/no), while
if no specific criteria have to be verified (n.a., not applicable).
(7) Minimum safeguards: it details whether the minimum safeguards are met in each single economic activity that has been reported.
(8) Category: it details whether the activity provides a direct contribution to climate mitigation or it is an enabling or transitional activity.
(9) Includes CHP (Combined Heat and Power) activity of €1 million in 2022.
(10) 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.

Our position on and commitment to the European Taxonomy

545Turnover
DNSH criteria(“Do No Significant Harm”)

Electricity generation using
solar photovoltaic technology

4.1

1,020

Electricity generation fromhydropower

4.5

Electricity generation fromgeothermal

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

2.4

2.7

0.7

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

0.7

0.9

4,298

3.0

99.5

0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

3.0

6.8

4.6

624

0.4

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

0.4

0.4

Storage of electricity

4.10

0

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

Y

Y

n.a.

Y

Y

0.0

0.0

Transmission and distributionof electricity

4.9

19,87313.9

91.9

0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

Y

Y

Y

13.9

21.9

7.3 d

307

0.2

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.2

0.3

Urban and suburban transport,
road passenger transport
6.3 a

135

0.1

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a.

Y

Y

n.a.

Y

0.1

0.1

20

0.0

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.0

0.0

458

0.3

100.0 0.0 n.a. n.a. n.a. n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.3

0.4

72

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.1

0.1

106

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.1

0.1

Economic
activities

Absolute Turnover“revenue”(1) 2022

Transitional activity

2.4

Enabling activity

3,375

Taxonomy-aligned
proportion of Turnover“revenue”(2) 2021

4.3

Taxonomy-aligned
proportion of Turnover“revenue”(2) 2022

Electricity generation fromwind power

Minimum safeguards(7)%Biodiversity andecosystems(6)%Pollution(6)Pollution(4)%Circular economy(6)Circular economy(4)%Water and marine
resources(6)Water and marine
resources(4)%Climate change
adaptation(6)Climate change
adaptation(4)%Climate change
mitigation(5)Climate change
mitigation(3)millions ofeuro

Category(8)Biodiversity andecosystems(4)Taxonomy
Code

Proportion of Turnover“revenue”(2) 2022

Substantial contribution criteria

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

A.1 Environmentally sustainable
activities (taxonomy-aligned)

Installation, maintenance andrepair of energy efficiency
equipment(Enel X - Smart Lighting)(Enel X - e-Bus)
Installation, maintenance andrepair of energy efficiency
equipment

7.3 a-e(Enel X - Energy Efficiency)
7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.5 Installation, maintenanceand repair of instruments
and devices for measuring,
7.3 a-e;regulation and controlling
7.5 a;
energy performance of
7.6 abuildings
7.6 Installation, maintenanceand repair of renewableenergy technologies(Enel X - Home/Vivi Meglio
Unifamiliare)
Professional services related
to energy performance ofbuildings

9.3(Enel X - Customer Insight)
Individual renovation measuresconsisting in installation,
maintenance or repair of
7.3 (a-e)energy efficiency equipment(Enel X - Condominium)

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3

Materiality analysis

Taxonomy-aligned
proportion of Turnover“revenue”(2) 2022

Taxonomy-aligned
proportion of Turnover“revenue”(2) 2021

Enabling activity

Transitional activity

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.1

0.1

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.0

0.0

185

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

0.1

0.1

30,636

21.4

94.5 0.0 n.a. n.a. n.a. n.a.

21.4

33.9

Absolute Turnover“revenue”(1) 2022

Minimum safeguards(7)

6.13;
7.4

Biodiversity andecosystems(6)31Pollution(6)7.6 f

Circular economy(6)0.1Water and marine
resources(6)132Climate change
adaptation(6)%Climate change
mitigation(5)Water and marine
resources(4)%Category(8)Biodiversity andecosystems(4)Climate change
adaptation(4)%Appendix

Pollution(4)Climate change
mitigation(3)%7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.3 d, e;
7.6 Installation, maintenance
7.6 aand repair of renewableenergy technologies

5

Circular economy(4)Proportion of Turnover“revenue”(2) 2022

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

millions ofeuro

TaxonomyCode

Our performance

DNSH criteria(“Do No Significant Harm”)

Substantial contribution criteria

Economic
activities

4(Enel X - Distributed Energy)
Installation, maintenance andrepair of renewable energy
technologies(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility
7.4 Installation, maintenanceand repair of charging
stations for electric vehicles inbuildings (and parking spaces
attached to buildings)

Y

Y

Y

(e-Mobility)
Turnover of environmentally
sustainable activities(taxonomy-aligned) (A.1)

A.2. TAXONOMY ELIGIBLE-NOTALIGNED ACTIVITIES

A.2 Taxonomy-eligible but notenvironmentally sustainable
activities (not taxonomyaligned activities)
Electricity generation fromhydropower

4.5

20

0.0

0.0

0.0

Transmission and distribution ofelectricity (Argentina, Colombia
and new connections between
a substation and power plant>100gCO2eq/kWh)

4.9

1,754

1.3

1.3

1.5

Electricity generation from fossil
gaseous fuels (CCGT)(9)

4.29

9,506

6.6

6.6

5.9

Turnover of taxonomy-eligible
but not environmentally
sustainable activities (nottaxonomy-aligned activities)(A.2)

11,280

7.9

7.9

7.4

Total (A.1 + A.2)

41,916

29.3

29.3

41.3

Our position on and commitment to the European Taxonomy

547

DNSH criteria(“Do No Significant Harm”)

Climate change
adaptation(4)Water and marine
resources(4)Circular economy(4)Pollution(4)Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Turnover“revenue”(2) 2022

Taxonomy-aligned
proportion of Turnover“revenue”(2) 2021

Enabling activity

Transitional activity

millions of
euro

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

Electricity generation from coal

n.a.

6,500

4.5

Electricity generation from
nuclear

n.a.

1,572

1.1

Electricity generation from fueloil and OCGT(10)

n.a.

2,162

1.5

Enel X (only activities nonelegible)

n.a.

951

0.7

Trading activities (Energy sales wholesale)n.a.

56,96939.8

Market (Gas sales - end
customer)n.a.

12,0498.4

Market (Power sales - end
customer)n.a.

50,76335.5

Services, Holding & Others

n.a.

2,062

1.5

Elisions and adjustments

n.a.

-31,935-22.3

Turnover of taxonomy-noteligible activities (B)101,093

70.7

Total (A + B)

143,009 100.0

Economic
activities

Absolute Turnover“revenue”(1) 2022

Taxonomy
Code

Climate change
mitigation(3)Category(8)Proportion of Turnover“revenue”(2) 2022

Substantial contribution criteria

B. TAXONOMY-NOT-ELIGIBLE ACTIVITIESB. Taxonomy-not-eligible
activities(1) Absolute turnover “revenue”: it refers to the absolute amount of turnover from each single economic activity, allocated according to its eligibility condition.
If the same activity is reported both in A.1 and A.2 or B, the figure reported in each single field reflects the proportion of the activity that satisfies the eligibility
conditions established in A.1, A.2 or B respectively.
(2) Proportion of turnover “revenue”: the proportion of the turnover of each single economic activity from total Group turnover.
(3) Climate change mitigation: it refers to the proportion of turnover from each economic activity that contributes to climate change mitigation.
(4) Not applicable objectives: no substantial contribution criteria have been defined for this objective before the release of the 2022 Sustainability Report.
(5) DNSH - Climate change mitigation: it is not applicable as the analysis of total substantial contribution criteria has been performed for climate change mitigation objective exclusively.
(6) DNSH: It details whether the DNSH criteria for each environmental objective is met in each single economic activity that has been reported (yes/no), while ifno specific criteria have to be verified (n.a., not applicable).
(7) Minimum safeguards: it details whether the minimum safeguards are met in each single economic activity that has been reported.
(8) Category: it details whether the activity provides a direct contribution to climate mitigation or it is an enabling or transitional activity.
(9) Includes CHP (Combined Heat and Power) activity of €41 million in 2022.
(10) 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.

548

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performance5

Appendix

Capex
DNSH criteria(“Do No Significant Harm”)

Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2022Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2021Enabling activity

Transitional activity

Water and marine
resources(4)Biodiversity andecosystems(4)Climate change
adaptation(4)Pollution(4)Climate change
mitigation(3)millions of
euro

%

%

%

%

Electricity generation fromwind power

4.3

2,221

14.7

Electricity generation using
solar photovoltaic technology

4.1

Electricity generation fromhydropower

Category(8)Circular economy(4)Taxonomy
Code

Proportion of Capex“capital expenditure“(2)2022Absolute Capex “capital
expenditure“(1) 2022

Substantial contribution criteria

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

14.7

21.5

3,011

20.0 100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

20.0

14.4

4.5

431

2.9

99.1

0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

2.9

3.0

Electricity generation fromgeothermal

4.6

125

0.8

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

0.8

0.9

Storage of electricity

4.10

528

3.5

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

n.a.

Y

Y

3.5

1.1

Transmission and distributionof electricity

4.9

5,234

34.7

93.0

0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

Y

Y

Y

34.7

35.4

7.3 d

84

0.5

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.5

0.4

Urban and suburban transport,
road passenger transport
6.3 a

1

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

Y

n.a.

Y

0.0

0.0

9

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.1

0.0

71

0.5

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.5

0.4

5

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.0

0.0

25

0.2

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

0.2

0.2

Economic
activities

A.1 Environmentally sustainable
activities (taxonomy-aligned)

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIESInstallation, maintenance andrepair of energy efficiency
equipment

E(Enel X - Smart Lighting)(Enel X - e-Bus)
Installation, maintenance andrepair of energy efficiency
equipment

7.3 a-e(Enel X - Energy Efficiency)
7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.5 Installation, maintenanceand repair of instruments
and devices for measuring,
7.3 a-e;regulation and controlling
7.5 a;
energy performance of
7.6 abuildings
7.6 Installation, maintenanceand repair of renewableenergy technologies(Enel X - Home/Vivi Meglio
Unifamiliare)
Professional services related
to energy performance ofbuildings

9.3(Enel X - Customer Insight)
Individual renovation measuresconsisting in installation,
maintenance or repair of
7.3 (a-e)energy efficiency equipment

Y

n.a.

(Enel X - Condominium)

Our position on and commitment to the European Taxonomy

549

DNSH criteria(“Do No Significant Harm”)

Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2022Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2021Enabling activity

Transitional activity

Water and marine
resources(4)Biodiversity andecosystems(4)Climate change
adaptation(4)A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

Pollution(4)Climate change
mitigation(3)

%

%

%

%

21

0.1

7.6 f

54

6.13;
7.4

n.a.

7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.3 d, e;
7.6 Installation, maintenance
7.6 aand repair of renewableenergy technologies

Category(8)Circular economy(4)Proportion of Capex“capital expenditure“(2)2022millions ofeuro

Taxonomy
Code

Economic
activities

Absolute Capex “capital
expenditure“(1) 2022

Substantial contribution criteria

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.1

0.1

0.4

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.4

0.3

113

0.7

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

Y

Y

Y

0.7

0.6

418

2.8

71.5

0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

Y

Y

Y

2.8

3.7

12,351

81.9

95.6

0.0 n.a. n.a. n.a. n.a.

81.9

82.0

(Enel X - Distributed Energy)
Installation, maintenance andrepair of renewable energy
technologies(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility
7.4 Installation, maintenanceand repair of charging
stations for electric vehicles inbuildings (and parking spaces
attached to buildings)(e-Mobility)
Additions to right-of-use
assets (IFRS 16 par. 53
point h)Capex of environmentally
sustainable activities(taxonomy-aligned) (A.1)

A.2. TAXONOMY ELIGIBLE-NOTALIGNED ACTIVITIES

A.2 Taxonomy-eligible but notenvironmentally sustainable
activities (not taxonomyaligned activities)
Electricity generation fromhydropower

4.5

4

0.0

0.0

0.0

Transmission and distribution ofelectricity (Argentina, Colombia
and new connections between
a substation and power plant>100gCO2eq/kWh)

4.9

393

2.6

2.6

2.9

Electricity generation from fossil
gaseous fuels (CCGT)

4.29

393

2.6

2.6

2.1

Additions to right-of-use assets(IFRS 16 par. 53 point h)

n.a.

166

1.1

1.1

1.5

Capex of taxonomy-eligible but
not environmentally sustainable
activities (not taxonomyaligned activities) (A.2)

956

6.3

6.3

6.5

Total (A.1 + A.2)

13,307

88.2

88.2

88.5

550

Sustainability Report 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

Our performance5

Appendix

DNSH criteria(“Do No Significant Harm”)

Substantial contribution criteria

Taxonomy
Code

Climate change
mitigation(3)Climate change
adaptation(4)Water and marine
resources(4)Circular economy(4)Pollution(4)Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2022Taxonomy-aligned
proportion of Capex“capital expenditure“(2)2021Enabling activity

Transitional activity

Category(8)Proportion of Capex“capital expenditure“(2)2022Absolute Capex “capital
expenditure“(1) 2022

4

millions of
euro

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

Electricity generation from coal

n.a.

32

0.2

Electricity generation from
nuclear

n.a.

142

0.9

Electricity generation from fueloil and OCGT(9)

n.a.

238

1.6

Enel X (only not eligible activities)

n.a.

103

0.6

Trading activities (Energy sales wholesale)

n.a.

163

1.1

Market (Gas sales - end
customer)

n.a.

118

0.8

Market (Power sales - end
customer)

n.a.

603

4.0

Services, Holding & Others

n.a.

219

1.5

Elisions and adjustments

n.a.

162

1.1

Additions to right-of-use assets(IFRS 16 par. 53 point h)

n.a.

1

0.0

Capex of taxonomy not eligible
activities (B)

1,781

11.8

Total (A + B)

15,088 100.0

Economic
activities

B. TAXONOMY-NOT-ELIGIBLE ACTIVITIESB. Taxonomy-not-eligible
activities(1) Absolute Capex “capital expenditure”: it refers to the absolute amount of Capex from each single economic activity, allocated according to its eligibility
condition. If the same activity is reported both in A.1 and A.2 or B, the figure reported in each single field reflects the proportion of the activity that satisfies
the eligibility conditions established in A.1, A.2 or B respectively.
(2) Proportion of Capex “capital expenditure”: the proportion of the Capex of each single economic activity from total Group Capex.
(3) Climate change mitigation: it refers to the proportion of Capex from each economic activity that contributes to climate change mitigation.
(4) Not applicable objectives: no substantial contribution criteria have been defined for this objective before the release of the 2022 Sustainability Report.
(5) DNSH - Climate change mitigation: it is not applicable as the analysis of total substantial contribution criteria has been performed for climate change
mitigation objective exclusively.
(6) DNSH: it details whether the DNSH criteria for each environmental objective is met in each single economic activity that has been reported (yes/no), while
if no specific criteria have to be verified (n.a., not applicable).
(7) Minimum safeguards: it details whether the minimum safeguards are met in each single economic activity that has been reported.
(8) Category: it details whether the activity provides a direct contribution to climate mitigation or it is an enabling or transitional activity.
(9) 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.

Our position on and commitment to the European Taxonomy

551

Opex (ordinary)
DNSH criteria(“Do No Significant Harm”)

Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Opex(2)2022Taxonomy-aligned
proportion of Opex(2)2021

Enabling activity

Transitional activity

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

7.2

6.0

3.9

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

n.a.

Y

Y

3.9

2.6

135

12.9

99.3

0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

12.9

11.3

4.6

4

0.4

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

n.a. n.a.

Y

Y

0.4

0.4

Storage of electricity

4.10

0

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

n.a.

Y

Y

0.0

0.0

Transmission and distributionof electricity

4.9

439

41.8

91.5

0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

Y

Y

Y

41.8

40.2

7.3 d

1

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.1

0.1

Urban and suburban transport,
road passenger transport
6.3 a

0

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a.

Y

Y

n.a.

Y

0.0

0.0

0

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.0

0.0

1

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

Y

n.a.

Y

0.1

0.1

1

0.1

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.1

0.1

millions of
euro

%

%

%

%

Electricity generation fromwind power

4.3

76

7.2

Electricity generation using
solar photovoltaic technology

4.1

41

Electricity generation fromhydropower

4.5

Electricity generation fromgeothermal

Economic
activities

Absolute Opex(1)2022

Water and marine
resources(4)%Climate change
adaptation(4)%Climate change
mitigation(3)%Taxonomy
Code

Proportion of Opex(2)2022Pollution(4)Category(8)Circular economy(4)Substantial contribution criteria

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES

A.1 Environmentally sustainable
activities (taxonomy-aligned)

Installation, maintenance andrepair of energy efficiency
equipment(Enel X - Smart Lighting)(Enel X - e-Bus)
Installation, maintenance andrepair of energy efficiency
equipment

7.3 a-e(Enel X - Energy Efficiency)
7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.5 Installation, maintenanceand repair of instruments
and devices for measuring,
7.3 a-e;regulation and controlling
7.5 a;
energy performance of
7.6 abuildings
7.6 Installation, maintenanceand repair of renewableenergy technologies(Enel X - Home/Vivi Meglio
Unifamiliare)
Professional services related
to energy performance ofbuildings

9.3(Enel X - Customer Insight)

552

Sustainability Report 2022

E

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

Appendix

Pollution(4)Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Opex(2)2022Taxonomy-aligned
proportion of Opex(2)2021

Enabling activity

Transitional activity

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.1

0.0

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a.

n.a.

Y

0.0

0.0

0

0.0

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

n.a. n.a. n.a. n.a.

Y

0.0

0.0

3

0.3

100.0 0.0

n.a. n.a. n.a.

n.a.

n.a.

Y

Y

Y

0.3

0.0

702

66.9 94.4 0.0 n.a. n.a. n.a. n.a.

66.9

60.8

%

%

%

1

0.1

0

7.6 f

6.13;
7.4

Absolute Opex(1)2022

Water and marine
resources(4)Y/NClimate change
adaptation(4)Y/NClimate change
mitigation(3)%Proportion of Opex(2)2022

Circular economy(4)Category(8)%%Individual renovation measuresconsisting in installation,
maintenance or repair of
7.3 (a-e)energy efficiency equipment

5%

millions ofeuro

TaxonomyCode

Our performance

DNSH criteria(“Do No Significant Harm”)

Substantial contribution criteria

Economic
activities

4

A.1. TAXONOMY ELIGIBLE-ALIGNED ACTIVITIES(Enel X - Condominium)
7.3 Installation, maintenanceand repair of energy efficiency
equipment
7.3 d, e;
7.6 Installation, maintenance
7.6 aand repair of renewableenergy technologies

Y(Enel X - Distributed Energy)
Installation, maintenance andrepair of renewable energy
technologies(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility
7.4 Installation, maintenanceand repair of charging
stations for electric vehicles inbuildings (and parking spaces
attached to buildings)

Y

Y

Y

(e-Mobility)
Opex of environmentally
sustainable activities(taxonomy-aligned) (A.1)

A.2. TAXONOMY ELIGIBLE-NOTALIGNED ACTIVITIES

A.2 Taxonomy-eligible but notenvironmentally sustainable
activities (not taxonomyaligned activities)
Electricity generation fromhydropower

4.5

1

0.0

0.0

0.1

Transmission and distribution ofelectricity (Argentina, Colombia
and new connections between
a substation and power plant>100gCO2eq/kWh)

4.9

41

3.9

3.9

3.9

Electricity generation from fossil
gaseous fuels (CCGT)(9)

4.29

93

8.9

8.9

10.7

Opex of taxonomy-eligible but
not environmentally sustainable
activities (not taxonomyaligned activities) (A.2)

135

12.8

12.8

14.7

Total (A.1 + A.2)

837

79.7

79.7

75.5

Our position on and commitment to the European Taxonomy

553

DNSH criteria(“Do No Significant Harm”)

Climate change
adaptation(4)Water and marine
resources(4)Circular economy(4)Pollution(4)Biodiversity andecosystems(4)Climate change
mitigation(5)Climate change
adaptation(6)Water and marine
resources(6)Circular economy(6)Pollution(6)Biodiversity andecosystems(6)Minimum safeguards(7)Taxonomy-aligned
proportion of Opex(2)2022Taxonomy-aligned
proportion of Opex(2)2021

Enabling activity

Transitional activity

millions of
euro

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

Electricity generation from coal

n.a.

36

3.4

Electricity generation from
nuclear

n.a.

87

8.3

Electricity generation from fueloil and OCGT(10)

n.a.

21

2.0

Enel X (only activities nonelegible)

n.a.

4

0.4

Trading activities (Energy sales wholesale)

n.a.

4

0.4

Market (Gas Sales - end
customer)

n.a.

3

0.3

Market (Power Sales - end
customer)

n.a.

13

1.2

Services, Holding & Others

n.a.

45

4.3

Elisions and adjustments

n.a.

0

0.0

Opex of Taxonomy-nonelegible activities (B)

213

20.3

Total (A + B)

1,050 100.0

Economic
activities

Absolute Opex(1)2022

Taxonomy
Code

Climate change
mitigation(3)Category(8)Proportion of Opex(2)2022

Substantial contribution criteria

B. TAXONOMY-NOT-ELIGIBLE ACTIVITIESB. Taxonomy-not-eligible
activities(1) Absolute Opex: it refers to the absolute amount of Opex from each single economic activity, allocated according to its eligibility condition. If the same activity is reported both in A.1 and A.2 or B, the figure reported in each single field reflects the proportion of the activity that satisfies the eligibility conditions
established in A.1, A.2 or B respectively.
(2) Proportion of Opex: the proportion of the Opex of each single economic activity from total Group Opex.
(3) Climate change mitigation: it refers to the proportion of Opex from each economic activity that contributes to climate change mitigation.
(4) Not applicable objectives: no substantial contribution criteria have been defined for this objective before the release of the 2022 Sustainability Report.
(5) DNSH - Climate change mitigation: it is not applicable as the analysis of total substantial contribution criteria has been performed for climate change mitigation objective exclusively.
(6) DNSH: it details whether the DNSH criteria for each environmental objective is met in each single economic activity that has been reported (yes/no), while ifno specific criteria have to be verified (n.a., not applicable).
(7) Minimum safeguards: it details whether the minimum safeguards are met in each single economic activity that has been reported.
(8) Category: it details whether the activity provides a direct contribution to climate mitigation or it is an enabling or transitional activity.
(9) Includes CHP (Combined Heat and Power) activity of €0.09 million in 2022.
(10) 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 theCommission Delegated Regulation (EU) 2022/1214 of March
9, 2022 amending Delegated Regulation (EU) 2021/2139 as

regards economic activities in certain energy sectors andDelegated Regulation (EU) 2021/2178 as regards specificpublic disclosures for those economic activities.

Template 1 – Nuclear and fossil gas related activities
Nuclear energy-related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative

1 electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce

2 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.

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or

3 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.

No

No

Yes

Fossil gas-related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce

4 electricity using fossil gaseous fuels.

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of combined heat/cool and5 power generation facilities using fossil gaseous fuels.

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities

6 that produce heat/cool using fossil gaseous fuels.

As stated in the above table, the only applicable activities
for Enel are the safe operation of existing nuclear installations and the operation of electricity generation facilities
that produce electricity using fossil gaseous fuels. The firstone is 100% not eligible while the second is 100% eligible-not aligned. Consequently, the following tables referto the templates number 4 and 5 included in the annex-

Yes

No

No

es of the Complementary Delegated Act. The remaining
templates included in such delegated act are not applicable according to Enel’s business model. Furthermore,
the information refers to the climate change mitigation
objective exclusively due to the lack of sufficient data tocomplete the analysis of the compliance with the climatechange adaptation objective.

Our position on and commitment to the European Taxonomy

555

Template 4 – Taxonomy-eligible but not taxonomy-aligned economic activities
EBITDA (ordinary)
Climate mitigation
Amountin 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 theapplicable KPI

2,492

12.7

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

569

2.9

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities inthe denominator of the applicable KPI

3,061

15.6

Economic activities

Turnover
Climate mitigation
Amountin 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 theapplicable KPI

9,506

6.6

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

1,774

1.2

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities inthe denominator of the applicable KPI

11,280

7.8

Economic activities

Capex
Climate mitigation
Amountin 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 theapplicable KPI

393

2.6

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

563

3.7

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities inthe denominator of the applicable KPI

956

6.3

Economic activities

Opex (ordinary)
Climate mitigation
Amountin 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 theapplicable KPI

93

8.9

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

42

4.0

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities inthe denominator of the applicable KPI

135

12.9

Economic activities

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Appendix

Template 5 – Taxonomy non-eligible economic activities
EBITDA (ordinary)
Climate mitigation
Amountin millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomynot-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI

651

3.3

Amount and proportion of other taxonomy-not-eligible economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI

4,806

24.4

Total amount and proportion of taxonomy-not-eligible economic activities in the denominator of
the applicable KPI

5,457

27.7

Economic activities

Turnover
Climate mitigation
Amountin millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomynot-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI

1,572

1.1

Amount and proportion of other taxonomy-not-eligible economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI

99,521

69.6

Total amount and proportion of taxonomy-not-eligible economic activities in the denominator of
the applicable KPI

101,09370.7

Economic activities

Capex
Climate mitigation
Amountin millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomynot-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI

142

0.9

Amount and proportion of other taxonomy-not-eligible economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI

1,639

10.9

Total amount and proportion of taxonomy-not-eligible economic activities in the denominator of
the applicable KPI

1,781

11.8

Economic activities

Opex (ordinary)
Climate mitigation
Amountin millions of euro%

Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomynot-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI

87

8.3

Amount and proportion of other taxonomy-not-eligible economic activities not referred to in rows
1 to 6 above in the denominator of the applicable KPI

126

12.0

Total amount and proportion of taxonomy-not-eligible economic activities in the denominator of
the applicable KPI

213

20.3

Economic activities

Our position on and commitment to the European Taxonomy

557

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3

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4

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Appendix

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560

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Appendix563

Green Bond Report 2022 –supporting notes
Introduction 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 total of 3.50 billion euros. The green bonds are for institutional investors and are guaranteed by Enel SpA. The net
issuance proceeds – carried out under the medium-termbond issue program of Enel and Enel Finance International(Euro Medium-Term Notes Program - EMTN) – were used
to finance eligible projects according to the “Green Bond
Principles” categories, published by the ICMA (International Capital Market 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 from renewable sources as well as projects for transmission, networks and smart grids (green bond emission in 2018).
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, who issued the so-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(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(1)

for the sixth time in 2022, 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 the years, 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 that 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;– investment activities relating to the business area
“Enel Grids”;• 2019 green bond reporting with evidence of the projects relating to renewable plants, 10 of which were also
subject to reporting for the 2017 and 2018 green bonds,
as described previously.

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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Finally, in agreement with what is required by the cited
Green Bond Framework, this document consists of the following 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 thefinancial 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 forthe 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(2). 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(3).

• Table B “ESG indicators” which shows the environmen-

tal benefit in terms of actual CO2 avoided. In particular,
with reference to:renewable projects:– the quantity of effective generation (with the exception 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 energy
generation of the country in which the plant is located (emission factors source: Enerdata - March 8, 2023
release);3

Materiality analysis

4

Our performance5

Appendix– 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
to an 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 areusually calculated using statistical models or benchmarks. A reduction in technical network losses results
in a reduction in the energy to be generated and aconsequent reduction in emissions and consumptionof 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 is 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.

• Table C “Further ESG indicators” which shows, where

possible and appropriate(4), as envisaged in the “second
party opinion”(5), 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;(2) If the same company is involved with the implementation of several projects, proceeds are allocated to the specific project based on the capacity.
(3) During 2022, the status of 19 MW of installed residual capacity that refers to the Italian hydroelectric repowering plants Isola Serafini I and II, Mucone I and IIchanged to “in operation”. In particular, there was a variation in the method of calculating the repowering capacity of Isola Serafini. In fact, the final capacityof the plant considered is limited by the power of the alternator with respect to what could have been obtained considering the maximum power of theturbine.
(4) Projects relating to renewable plants with a capacity of more than 20 MW are considered to be relevant.
(5) 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.

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– 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”(6)) injuries to Enel people;– activities and projects carried out to support local
communities in the areas surrounding the plant. The
indicator 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.

• 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 basisof the results of Enel’s accounting, non-accounting andother information systems, and validated by the persons
responsible in each case. The data determined throughthe use of estimates and related calculation method has
been expressly indicated.

SUMMARY TABLE OF 2017, 2018 AND 2019 EMISSIONS WITH INDICATION OF THE INSTALLED CAPACITY AND THE
CO2 AVOIDED
Green Bond (GB) emission
2017

Area of investment
Renewables

2018

GB proceeds allocated(mil €)

Installed capacity(MW)

Cumulative CO2
avoided(1) (t)

1,238

3,355

25,875,420

1,878

10,857,053

1,240

of which new renewable projects

Renewables

575

of which new Enel Grids projects

Grids

665

2019

-(1)

986

631

2,524,576

of which new projects identified in 2019

Renewables

65

631

2,524,576

of which new Capex for 2018 projects

Renewables

342

n.a.

-

of which new Capex for 2017 projects

Renewables

579

n.a.

-

(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. In 2022 this amounts to 2,963 MWh of saved energy.

(6) These are injuries that caused consequences to health that permanently changed a person’s life (for example, amputation of limbs, paralysis, neurologicaldamage, etc.).

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Green Bond

Appendix| 2017 |Table A – Financial indicators
Investments (value in currency)
Capacity(MW)

Country

Project nameTechnology

StatusUSA

Red Dirt

Wind

In Operation

300

Value incurrency(mil)

Equivalent ineuro (mil)(1)GB
proceeds
allocatedin 2017 (mileuros)

USD

420

378

77

Commercial
operation
date Currency
Nov-17GB
proceeds
allocated in2019 (mileuros)(2)-

USA

Thunder RanchWind

In Operation

298

Nov-17

USD

435

392

132

-

USA

Hilltopper

Wind

In Operation

185

Nov-18

USD

325

293

166

-

USA

Stillwater Solar II Solar

In Operation27

May-18

USD

40

36

48

-

USA

Woods Hill

Solar

In Operation25

Dec-17

USD

44

41

36

-

USA

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

-

Wind

105

Apr-20

CAD

8

81

210

187

2

23

CANADA Riverview
CANADA

Castel RockRidge 2Wind

In Operation
In Operation

29

Mar-20CAD

MEXICO

Magdalena 2

Solar

In Operation220

Sept-19

USD

165

136

9

112

MEXICO

Amistad IIWind

In Operation100

Dec-19

USD

115

97

22

55

305

269

MEXICO

Amistad III

Wind

In Operation108

Feb-20USD

MEXICO

Amistad IV

Wind

In Operation162

Dec-20USD

MEXICO

Dolores

11

59

18

57

Wind

In Operation

274

May-20

USD

290

255

36

192

PANAMA Estrella Solar

Solar

In Operation

8

Aug-18

USD

8

7

5

-

ZAMBIA

NgonyeSolar

In Operation

34

Mar-19

USD

40

34

10

-

ITALY

Variousprojects(4)Geothermal/
Hydroelectric

8

-

EUR

43

43

14

-

1,238

579

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 the 2017
green bond is 1.11 USD/EUR, for projects allocated in the 2018 green bond it is 1.19 USD/EUR whereas for projects whose investment value has been updated – including those with the new Capex identified in GB 2019 – the exchange rate is 1.21.
(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.

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Green Bond

| 2017 |Table B – ESG indicators
2022 generation(GWh)

CO2 avoided
2022 (t)2017-2022 generation(GWh)

2017-2022 CO2
avoided (t)Red Dirt

1,013

624,620

5,147

3,253,855

USA

Thunder Ranch

852

525,450

5,210

3,305,419

USA

Hilltopper

621

382,546

2,326

1,445,543

USA

Stillwater Solar II

24

14,572

97

61,905

USA

Woods Hill

31

18,821

135

84,554USA

Rattlesnake Creek

1,165

718,195

4,519

2,802,047

USA

Rock Creek

1,160

715,099

5,544

3,504,193

BRAZIL

Horizonte MP

125

73,500781

441,993

BRAZIL

Delfina805

472,285

4,408

2,479,669

CHILE

Cerro Pabellón

264

219,675

1,223

939,254

CHILE

Sierra Gorda

338

280,819

2,056

1,574,334

PERU

Wayra

618

293,973

2,905

1,424,938

PERU

Rubi

452

214,836

2,174

1,067,162

ITALY

Various projects(1)173

78,057582

278,954

CANADA

Riverview347

224,157923

604,297

CANADA

Castel Rock Ridge 2

101

65,486279

183,033

MEXICO

Magdalena 2

518

293,7931,500

837,394

MEXICO

Amistad II

15

8,590

192

103,391

MEXICO

Amistad III

-

3

168

90,060MEXICO

Amistad IV

40

22,627

128

69,730MEXICO

Dolores

816

462,740

1,917

1,069,643

PANAMA

Estrella Solar

9

8,336

40

31,370ZAMBIA

Ngonye58

60,958

210

216,547

ITALY

Various projects(2)

-

62

12

6,136

Country

Project name

USA

(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.

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3

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4

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5

Green Bond

Appendix| 2017 |Table C – Further ESG indicators

Country

Project nameWater
consumptionm3(1)Plant shutdown
Actions toor site stop due Injuries (fatalities
protect/restore to environmental
and “Lifebiodiversity (no.)
issues (no.) Changing”) (no.)

Social projects(no.)

Beneficiaries ofsocial projects
(no.)

USA

Red Dirt

-

-

-

-

1

20

USA

Thunder Ranch

-

-

-

-

1

20

USA

Hilltopper

-

-

-

-

1

38,000USA

Stillwater Solar II

-

-

-

-

-

-

USA

Woods Hill

-

-

-

-

2

400

USA

Rattlesnake Creek

-

-

-

-

-

-

USA

Rock Creek

-

-

-

-

-

-

BRAZIL

Horizonte MP

658

2

-

-

3

918

BRAZIL

Delfina

-

2

-

-

4

719

CHILE

Cerro Pabellón

6,289

-

-

-

1

25

CHILE

Sierra Gorda

-

1

-

-

1

35

PERU

Wayra

-

1

-

-

7

3,725

PERU

Rubi

-

-

-

-

9

4,584

ITALY

Various projects(2)

-

1

-

-

4

139

CANADA

Riverview

-

-

-

-

3

114

CANADA

Castel Rock Ridge 2

MEXICO

Magdalena 2

-

-

-

-

1

80

2,759

-

-

-

4

198

MEXICO

Amistad II

-

-

-

-

2

51

MEXICO

Amistad III

-

-

-

-

3

98

MEXICO

Amistad IV

-

-

-

-

4

121

MEXICO

Dolores

-

2

-

-

6

157

PANAMA

Estrella Solar

28

-

-

-

1

40

ZAMBIA

Ngonye

-

-

-

-

1

594

ITALY

Various projects(3)

-

-

-

-

2

6

(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 hydroelectric.

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| 2018 |Table A – Financial indicators
Investments (value in currency)

Country

Project
nameTechnology

StatusCapacity(MW)

Commercial
operation
date Currency

Value incurrency Equivalent in(mil)euro (mil)(1)GB
proceeds
allocated in2018 (mileuros)

GB
proceeds
allocated in2019 (mileuros)(2)

USA

Diamond
Vista

Wind

In Operation300

Dec-18

USD

400

336

100

-

USA

FennerRepoweringWind

In Operation29

Dec-18

USD

29

24

21

-

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

GERMANY

Cremzow

Other

In Operation22

Feb-19

USD

17

17

9

-

GREECE

KafireasWind

In Operation154

Oct-19

EUR

300

300

64

126

COLOMBIAEl PasoSolar

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 IIWind

In Operation65

Dec-16

USD

90

76

29

-

575

342

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 the 2017
green bond is 1.11 USD/EUR, for projects allocated in the 2018 green bond it is 1.19 USD/EUR whereas for projects whose investment value has been updated – including those with the new Capex identified in GB 2019 – the exchange rate is 1.21.
(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
2022 generation(GWh)

CO2 avoided
2022 (t)2018-2022
generation (GWh)

2018-2022 CO2
avoided (t)1,224.42

754,741.17

4,673.23

2,897,937.43

Country

Project name

USA

Diamond Vista

USA

Fenner Repowering

86.70

53,440.59

248.05151,040.18

USAHigh Lonesome I+II

1,192.22

734,890.56

4,044.08

2,453,745.97

USA

Roadrunner

1,009.42

622,211.80

2,847.63

1,729,630.29

GERMANY

Cremzow

-

-

-

-

(1)

GREECE

Kafireas468.40272,164.73

1,377.09

909,700.22

COLOMBIAEl Paso

149.96

94,583.63

415.16

324,880.79

USA

Aurora308.50190,161.16

1,039.08

654,277.10

USA

Little Elk

307.89189,782.69

1,626.10

1,028,123.22

USA

Chisholm View II

240.66

148,344.45

1,119.87

707,717.34(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.

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4

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5

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Appendix| 2018 |Table C – Further ESG indicators
Actions to
Plant
protect/
shutdown orrestore site stop due tobiodiversity environmental(no.)
issues (no.)

Injuries(fatalities
and “Life
Changing”)(no.)

Social projects(no.)

Beneficiaries
of socialprojects (no.)

Country

Project nameWater
consumption
m3(1)

USA

Diamond Vista

-

-

-

-

2

505

USA

Fenner Repowering

-

-

-

-

1

150

USA

High Lonesome I+II

-

-

-

-

-

-

USA

Roadrunner

-

-

-

-

-

-

GERMANY

Cremzow

-

-

-

-

-

-

GREECE

Kafireas

-

-

-

-

4

332

COLOMBIAEl Paso

-

-

-

-

3

1,448

USA

Aurora

-

-

-

-

2

100

USA

Little Elk

-

-

-

-

-

-

USA

Chisholm View II

-

-

-

-

-

-

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571

(1)

Industrial water consumption related to water extraction data for plant.

Green Bond

| 2018 |Table A – Financial indicators

Country

Project cluster

Cluster

ITALY

Smart meter

Asset Development

Investments incurrency (mil)Green bondproceeds
allocated to theproject in 2018(mil euros)

(1)

-

46

-

21

-

305

StatusITALY

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

52
424

-

242

452

242

1,276

666

(2)

Total Asset Management
Total Asset Development andAsset Management Country Italy

824

(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
Oil
equipmentwith PCB
removed (no.)

End userswith active
smart meters(mil)

Renewable
generationunits
connected
to network(no.)

New “users”
connected
to network(no.)

Technical
networklosses (%)

Cabling (%)

Network
automation(%)

Total Asset Development

-

-

-

31.56

203,919

10,584-

Total Asset Management

75.9

-

147

-

-

-

3.35

COUNTRY - ITALY(1)

Energysaved(MWh)(1)2,963

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

Injuries (fatalities and “Life
Changing”) (no.)

Social projects (no.)

Beneficiaries of social
projects (no.)

Biodiversity
projects (no.)(1)-351

383,801

12

ITALY
(1)

The reduction in the number of biodiversity projects as compared to 2021 is due to the change in the reporting criteria that involved the combination ofmultiple projects.

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Appendix| 2019 |Table A – Financial indicators
Investments (value in currency)GB
GB proceeds
GBproceeds allocated proceeds
Commercial
in 2018 allocated in
Value in Equivalent allocatedCapacity
operationin 2017(mil 2019 (milcurrency
in euro(MW)date Currency
euros)
euros)(2)(mil)(mil)(1) (mil euros)Country

Project
nameTechnology

StatusUSA

Whitney Hill

Wind

In Operation66

Dec-19

USD

281

232

-

-

10

USA

Aurora WindWind

In Operation299

Dec-20

USD

450

401

-

-

10

USA

Cimarron
Bend 3phase IWindIn Operation199

Dec-20

USD

281

248

-

-

4

AUSTRALIA Cohuna

Solar

In Operation34

Jun-20

USD

42

37

-

-

31

Variousprojects(3)Hydroelectric In Operation

33

-

EUR

55

55

-

-

10

CANADA

RiverviewWind

In Operation

105

Apr-20

CAD

210

187

8

-

81

CANADA

Castel RockRidge 2Wind

In Operation

29

Mar-20

CAD

2

-

23

ITALY

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

305

269

11

-

59

MEXICO

Amistad IV

Wind

In Operation162

Dec-20

USD

18

-

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

GREECE

KafireasWind

In Operation154

Oct-19

USD

300

300

-

64

126

TOTAL

986

(1)

Indicative value in euros (EUR), although the investment in US dollars (USD) applies where present. The exchange rate used for projects allocated in the 2017
green bond is 1.11 USD/EUR, for projects allocated in the 2018 green bond it is 1.19 USD/EUR whereas for projects whose investment value has been updated – including those with the new Capex identified in GB 2019 – the exchange rate is 1.21.
(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
2022 generation(GWh)

CO2 avoided
2022 (t)2019-2022 generation(GWh

2019-2022 CO2
avoided (t)Whitney Hill

207.54

127,926.68

601.23

365,286.19

USA

Aurora Wind

1,184.80

730,314.75

1,914.90

1,159,927.41

USA

Cimarron Bend 3 phase I

811.92500,470.84

1,615.94

973,575.45

18.44

16,567.70

29.10

25,786.78

-

-

-

-

Country

Project name(1)USA

AUSTRALIA Cohuna
ITALY

Various projects(2)(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 refer tothe 2017 and 2018 tables.
(2) 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 inpower.

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| 2019 |Table C – Further ESG indicators
Actions to
Water protect/restore
consumption
biodiversity
m3(2)
(no.)

Plant shutdown
or site stop
Injuries
due to(fatalities
environmental
and “Lifeissues (no.) Changing”) (no.)

Social projects(no.)

Beneficiaries ofsocial projects(no.)

Country

Project name(1)USA

Whitney Hill

-

-

-

-

-

-

USA

Aurora Wind

-

-

-

-

-

-

USA

Cimarron Bend 3 phase I

-

-

-

-

-

-

AUSTRALIA

Cohuna

-

-

-

-

7

268

ITALY

Various projects(3)

-

-

-

-

1

500

(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 refer tothe 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.

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Appendix

Table D – Overall information
CRITERION

INDICATOR

GB 2022 DATA/APPROACH

Number and description of thereports identified through theEnel monitoring system

Five reports were received for presumed violations of the principle ofrespect for diversity and non-discrimination. Of the five reports, three ended
as a non-violation and two as a violation with inappropriate behavior byindividual employees regarding projects financed with GB proceeds. Suitablecorrective actions were implemented for the two violations.

Results of risk analysis
on human rights atcountry level

The risk analysis conducted on a country level in the Group’s areas ofpresence highlighted an average risk perceived as “to be monitored”
and “high priority”(1). Group human rights practices and policies were
subsequently assessed as “robust”(2). However, specific action plans havebeen developed for each country of presence as well as a centrally managed
improvement plan to harmonize and integrate processes and policies
defined at the global level and applied at the local level.

Number and description of thereports identified through theEnel monitoring system

No reports regarding projects financed with proceeds from the GB.

Results of risk analysis
on human rights atcountry level

The risk analysis conducted on a country level in the in the Group’s areasof presence highlighted an average risk perceived as “to be monitored”(1).
Group human rights practices and policies were subsequently assessed
as “robust”(2). However, specific action plans have been developed for eachcountry of presence as well as a centrally managed improvement plan toharmonize and integrate processes and policies defined at the global level
and applied at the local level.

Number and description of thereports identified through theEnel monitoring system

No reports regarding projects financed with proceeds from the GB.

Number of injuries(fatalities and “Life Changing”)

No fatality or “Life Changing” injury was recorded for projects financed withproceeds 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 theUnited Nations Global Compact, respect for and protection of internationallyrecognized human rights, as well as respect for ethical and social obligations
regarding the fight against child labor and protection of women, equal
treatment, prohibition of discrimination, freedom of association andrepresentation, forced labor, safety and environmental protection, sanitaryconditions and also regulatory conditions, retribution, contributions,insurance and tax.

Business ethics (preventionof corruption and money
laundering, fraud,
anticompetitive practices)

Number and description of thereports identified through theEnel monitoring system

Three reports were received related to conflicts of interest/corruption forthe pursuit of personal interests and/or interests that harm the company. Of
the three reports, two are being analyzed as of the date of the non-financial
disclosure and one ended as a non-violation.

Audit and internal control% of area/country processes
covered by internal audit
activities

The average annual coverage level of the processes through internal audit
activities is equal to 53% for Renewables and 90% for Grids in Italy.

Respect for human rights
standards and prevention ofbreaches

Respect for labor rights

Working conditions(employment relationships,
training, health and safety
conditions, respect for working
hours)(1)

Average perceived risk: average of perceived risk levels identified in the countries being analyzed. Reference scale of risks: 1. High risk; 2. High priority risk;
3. Risk to be monitored; 4. Acceptable risk.
(2) Reference scale of performance values: Robust (75%-100%); Good (50%-75%); Sufficient (25%-50%); Needs improvement (0%-25%).

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2

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3

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4

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Appendix

577

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2

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3

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4

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Appendix579

Sustainability-Linked
Financing Report
Contents:
1. Introduction
2. List of outstanding sustainability-linked bond issued by Enel
3. Enel’s KPI performance
3.1 Performance of KPI #1
3.2 Performance of KPI #2
3.3 Performance of KPI #3
3.4 Performance of KPI #4
3.5 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 and agreements 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 foreign exchange
derivatives, sustainability-linked rates derivatives and sus-

tainability-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 andits impacts), as well as the environmental targets definedby the European Union in the EU Taxonomy Regulation,with particular attention to the climate mitigation objective.

KPIs and Sustainability Performance Targets (SPT) summary
KPI

Actual values
2022

Sustainability Performance Targets (SPT)
2023

2024

2025

2030

2040

148

140

130

72

0

218

135

73

0

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

22.9

20.9

11.4

0

KPI #4
Renewable Installed Capacity Percentage (%)(3)

63.1

76%

85%

100%

KPI #1
Scope 1 GHG emissions Intensity relating to Power Generation(gCO2eq/kWh)(2)229

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

KPI #5
Proportion of Capex aligned with the EU Taxonomy (%)

2022

60%

81.9%

Target:

65%

66%
>80%

Outdated(1) Enel - Sustainability-Linked Financing Framework – February 2023.
(2) 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
Amount (Scope 1)”.
(3) Excluded from the calculation are 531.1 MW of acquired capacity, deriving from power plants acquired by the Group, according to what is indicated by thecontractual documentation of the individual instruments.

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4

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Appendix

2. List of outstanding sustainability-linked bond issued by
Enel
ISIN

IssuerAmount issued

Amount outstanding

Maturity

US29278GAL23

Enel Finance 10/09/2019
International
NV (“EFI”)

1,500,000,000 $

1,500,000,000 $10/09/2024 Renewable
55%
Installed Capacity
Percentage (%)

2021

XS2066706818

EFI

17/10/2019

1,000,000,000 €

1,000,000,000 €17/06/2024 Renewable
55%
Installed Capacity
Percentage (%)

2021

XS2066706909

EFI

17/10/2019

1,000,000,000 €

1,000,000,000 €17/06/2027 Renewable
55%
Installed Capacity
Percentage (%)

2021

XS2066706735

EFI

17/10/2019

500,000,000 €

500,000,000 €17/10/2034

XS2244418609

EFI

20/10/2020

500,000,000 £

500,000,000 £20/10/2027 Renewable
60%
Installed Capacity
Percentage (%)

2022

XS2353182020

EFI

17/06/2021

1,000,000,000 €

1,000,000,000 €17/06/2027 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh

2023

XS2353182293

EFI

17/06/2021

1,250,000,000 €

1,250,000,000 €17/06/2030 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh

2023

XS2353182376

EFI

17/06/2021

1,000,000,000 €

1,000,000,000 €17/06/2036 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

82 gCO2eq/
kWh

2030

US29278GAM06 EFI

12/07/2021

1,250,000,000 $

1,250,000,000 $12/07/2026 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh2023

US29278GAN88 EFI

12/07/2021

1,000,000,000 $

1,000,000,000 $12/07/2028 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh2023

US29278GAP37

12/07/2021

1,000,000,000 $

1,000,000,000 $12/07/2031

Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh2023

750,000,000 $

750,000,000 $12/07/2041

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

82 gCO2eq/
kWh

2030

EFI

Issuance date

US29280HAB87 Enel Finance 12/07/2021
America,
LLC (“EFA”)

KPI

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

SPT

TargetDate orachievement
period of as of 2021
reference and 2022

125 gCO2eq/ 2030
kWh

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ISIN

Issuance dateAmount issued

Amount outstanding

Maturity

XS2390400633 EFI

28/09/2021

1,250,000,000 €

1,250,000,000 €28/05/2026 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh

2023

XS2390400716

EFI

28/09/2021

1,000,000,000 €

1,000,000,000 €28/05/2029 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh

2023

XS2390400807

EFI

28/09/2021

1,250,000,000 €

1,250,000,000 €28/09/2034 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

82 gCO2eq/
kWh

2030

XS2432293673

EFI

17/01/2022

1,250,000,000 €

1,250,000,000 €17/11/2025

Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh

2023

XS2432293756

EFI

17/01/2022

750,000,000 €

750,000,000 €17/01/2031

Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)140gCO2eq/kWh

2024

XS2432293913

EFI

17/01/2022

750,000,000 €

750,000,000 €17/01/2035

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

82 gCO2eq/
kWh

2030

XS2466363202

EFI

11/04/2022

750,000,000 £

750,000,000 £11/04/2029 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)140gCO2eq/kWh2024

USN30707AN87 EFI

15/06/2022

750,000,000 $

750,000,000 $15/06/2025 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh2023

US29278GAW87 EFI

15/06/2022

750,000,000 $

750,000,000 $15/06/2027 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)140gCO2eq/kWh2024

US29278GAX60 EFI

15/06/2022

1,000,000,000 $

1,000,000,000 $15/06/2032 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

82 gCO2eq/
kWh

2030

US29278GAY44 EFI

15/06/2022

1,000,000,000 $

1,000,000,000 $15/06/2052 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

0 gCO2eq/
kWh

2040

582

IssuerSustainability Report 2022

KPI

SPT

TargetDate orachievement
period of as of 2021
reference and 2022

1

Letter to stakeholders

2

We empower sustainable progress

3

Materiality analysis

4

Our performanceIssuerIssuance dateAmount issued

Amount outstanding

Maturity

XS2531420656

EFI

09/09/2022

1,000,000,000 €

1,000,000,000 €09/03/2029 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)140gCO2eq/kWh2024

US29278GAZ19

EFI

14/10/2022

750,000,000 $

750,000,000 $14/10/2025 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)148
gCO2eq/kWh2023

US29280HAA05 EFA

14/10/2022

1,000,000,000 $

1,000,000,000 $14/10/2027 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)140gCO2eq/kWh2024

US29278GBA58 EFI

14/10/2022

1,250,000,000 $

1,250,000,000 $14/10/2032 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

82 gCO2eq/
kWh

2030

US29278GBB32 EFI

14/10/2022

1,000,000,000 $

1,000,000,000 $14/10/2052 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)

0 gCO2eq/
kWh

2040

XS2589260723

20/02/2023

750,000,000 €

750,000,000 €20/02/2031 Scope 1 GHG
emissions
Intensity relating
to Power
Generation(gCO2eq/kWh)130gCO2eq/
kWh

2025

>80%

20232025

0 gCO2eq/
kWh

2040

Absolute Scope 0 MtCO2eq
3 GHG emissions
relating to Gas
Retail (MtCO2eq)

2040

Proportion ofCapex alignedwith the EU
Taxonomy (%)
XS2589260996

Total

EFI

20/02/2023

750,000,000 €

750,000,000 €20/02/2043 Scope 1 and 3
GHG emissions
Intensity relating
to Integrated
Power(gCO2eq/kWh)

SPTAppendix

TargetDate orachievement
period of as of 2021
reference and 2022

ISIN

EFI

KPI

5

28,055,744,969 €eq(4) 28,055,744,969 €eq(5)(4) Calculated with the following exchange rates: EUR/USD FX and EUR/GBP FX at December 30, 2022.
(5) Calculated with the following exchange rates: EUR/USD FX and EUR/GBP FX at December 30, 2022.

Sustainability-Linked Financing Report583

3. Enel’s KPI performance
a. KPI #1: Scope 1 GHG emissions Intensity relating to Power 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) deriving from the2

42

generation of energy and measured in grams of CO2eq per kWh, as defined and detailed in the documentation forsustainability-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 more than 99% of total Scope 1 emissions.

• Materiality: in 2022, KPI #1 Scope 1 GHG emissions Intensity relating to Power Generation represents 39.2% of Enel’s
total carbon footprint and is equivalent to 52.1 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 made toalign it with the most ambitious climatic scenario available.
Also in 2015, Enel defined its first science-based target aligned with the scenario “well below 2 degrees”, targeted toward reducing the carbon intensity by 25% as compared to 2007 (reaching 350 gCO2eq/kWh).
In 2019, Enel, having reached the 2020 goal a year in advance, announced a new science-based objective for 2030aligned with the “well below 2 degrees” scenario, increasing the percentage of emissions reduction from 70% to 80%
as compared to 2017 (from 125 gCO2eq/kWh to 82 gCO2eq/kWh), how aligned with the 1.5 °C scenario.
In 2021, Enel announced to have brought forward the achievement of the objective of complete 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
at 2023, 140 gCO2eq/kWh at 2024 and 130 gCO2eq/kWh at 2025.

• 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 performance
2020(actual)2021(actual)2022(actual)2023(target)2024(target)2025(target)2030(target)2040(target)KPI #1 Performance

214

225

229

148

140

130

72

0

Gap vs 2023

66

77

81

Gap vs 2024

74

85

89

8

Gap vs 2025

84

95

99

18

10

Gap vs 2030

132

143

147

76

68

58

Gap vs 2040

214

225

229

148

140

130

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
Amount (Scope 1)”.
(7) The GHG Protocol provides the greenhouse gas accounting standards (https://ghgprotocol.org/).

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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: Intensity metric calculated as the combination of Group Scope 1 greenhouse gas emissions(including CO2, CH4 and N2O) (measured in gCO2eq) and Group Scope 3 greenhouse gas emissions from the generationof purchased electricity that is sold to end customers (measured in gCO2eq) (which represents an element of 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 and detailed 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 generation andfrom electricity purchased from third parties.

• Materiality: in 2022, KPI #2 Scope 1 and 3 GHG emissions Intensity relating to Integrated Power represented 60.6%
of Enel’s total carbon footprint, equivalent to 80.6 MtCO2eq, of which Group Scope 1 CO2eq emissions from power
generation represented 39.2%, equivalent to 52.1 MtCO2eq, and Group Scope 3 CO2 emissions from the generation ofelectricity purchased and sold to end customers represented 21.4%, equivalent to 28.5 MtCO2eq.

• Intermediate and long-term goals: in November 2022 Enel announced its goal of reducing the emissions of the above

KPI to 135 gCO2eq/kWh by 2025. In December 2022, SBTi validated the following 2030 and 2040 goals as in line withthe “1.5 °C climate goal” scenario: reduce 100% of direct greenhouse gas emissions (Scope 1) deriving from the production of electricity and of indirect greenhouse gas emissions (Scope 3) deriving from fuels and activities connected
to power, covering all electricity sold per kWh by 2040 as compared to 2017 (332 gCO2eq/kWh), with a medium-termgoal of a 78% reduction by 2030 (73 gCO2eq/kWh).

• 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 #2 and relative SPT performance
2020(actual)2021(actual)2022(actual)2025(target)2030(target)2040(target)KPI #2 Performance

194

203

218

135

73

0

Gap vs 2025

59

68

83

Gap vs 2030

121

130

145

62

Gap vs 2040

194

203

218

135

73

Sustainability-Linked Financing Report585

c. KPI #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 from use of sold gas by the Group to its
2

end customers, as defined and detailed in the documentation of the relevant Sustainability-Linked transactions and inline 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 2022, KPI #3 Absolute GHG Scope 3 emissions related to Gas Retail represented 17.2% of Enel’s total
carbon footprint, equivalent to 22.9 MtCO2eq.

• Intermediate and long-term goals: in November 2022 Enel announced its goal of reducing the emissions of KPI #3

Absolute GHG Scope 3 emissions related to Gas Retail, reaching 20.9 MtCO2 by 2025 and 11.4 MtCO2 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).

• 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 performance

KPI #3 Performance

2020(actual)2021(actual)2022(actual)2025(target)2030(target)2040(target)

21.9

22.3

22.9

20.9

11.4

0

Gap vs 2025

1.0

1.4

2.9

Gap vs 2030

10.5

10.9

11.5

9.5

Gap vs 2040

21.9

22.3

22.9

20.9

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Letter to stakeholders

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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: KPI #4 provides a global representation of the decarbonization process of the Group’s technological mix,
towards the complete adoption of renewable energy by 2040.

• Intermediate and long-term goals: in November 2022, Enel reinforced its objective to reach 76% of total net efficientinstalled capacity from renewable sources by the end of 2025. The Group plans on adding approximately +21 GW to
its installed capacity during 2023-2025, in line with reaching the decarbonization objectives aligned with the Paris
Agreement. It is expected that in 2025 consolidated renewable capacity will amount to ~61 GW, equal to 76% of theGroup’s total consolidated generation, with consolidated renewable generation that should reach 70%. By 2030, thepercentage of the Group’s consolidated renewable capacity will be equal to 85% and 100% by 2040.

• 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
2020(actual)2021(actual)2022(actual)2023(target)2024(target)2025(target)2030(target)2040(target)KPI #4 Performance

53.6%

57.5%

63.1%

65.0%

66.0%

76.0%

85.0%

100.0%

Gap vs 2021

3.9%

Gap vs 2022

9.5%

5.6%

Gap vs 2023

11.4%

7.5%

1.9%

Gap vs 2024

12.4%

8.5%

2.9%

1.0%

Gap vs 2025

22.4%

18.5%

12.9%

11.0%

10.0%

Gap vs 2030

31.4%

27.5%

21.9%

20.0%

19.0%

9.0%

Gap vs 2040

46.4%

42.5%

36.9%

35.0%

34.0%

24.0%

15.0%

Sustainability-Linked Financing Report587

e. KPI #5: Proportion of Capex aligned with the EU Taxonomy (%)

KPI #5: Proportion of Capex aligned with 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:
Capex aligned with the EU Taxonomy				Total Capex according to the requirementsof article 8 of the regulation on EU Taxonomy (2020/852)		
Proportion of Capex aligned with the EU Taxonomy			Calculation method(a) EURbn(b) EURbn(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 with EU Taxonomy shows to what
extent Enel is investing in a carbon-free business model.

• 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 EU Taxonomy.

• 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

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(actual)2021(actual)2022(actual)2023-2025(target)

-

82.0%

81.9%

>80%

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Appendix

4. Verification on Enel’s KPI performance
I. KPI #1 performance
At December 31, 2022, the amount of KPI #1 emissions
Scope 1 GHG emissions Intensity relating to Power Generation (gCO2eq/kWh) is equal to [229] 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 558562 of the present Report.

II. KPI #2 performance
At December 31, 2022, the amount of KPI #2 emissions
Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh) is equal to [218] 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 558-562 of the present Report.

III. KPI #3 performance
At 31 December, 2022, the amount of KPI #3 emissions
Absolute Scope 3 GHG emissions relating to Gas Retail(MtCO2eq) is equal to [22.9] MtCO2eq.

Enel, of KPI #3 Absolute Scope 3 GHG emissions relating
to Gas Retail (MtCO2eq) is available at pages 558-562 of thepresent Report.

The Assurance Report of [KPMG], as the external verifier of

IV. KPI #4 performance
The percentage value of KPI #4 Renewable Installed Capacity
Percentage (%) at December 31, 2022, is equal to 63.1%(8).

Renewable energy installed capacity
Total installed capacity
Renewable installed capacity percentage

Calculation method(a) 53.030 MW(b) 84.047 MW(a) / (b) 63.1%

As a consequence of the calculation above, Enel has satisfied the Sustainability Performance Targets (SPTs) in thecontext of all instruments linked to a renewable installedcapacity percentage equal to or greater than 60% as ofDecember 31, 2022.

The Assurance Report of KPMG, as Enel’s external verifier, of KPI #4 Renewable Installed Capacity Percentage(%) is available at the following link: https://www.enel.com/
investors/investing/sustainable-finance/sustainability-linked-finance.

(8) For more details, please see Enel Statement on the Renewable Installed Capacity Percentage published on Enel’s website and available at the following link:
https://www.enel.com/investors/investing/sustainable-finance/sustainability-linked-finance.

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V. KPI #5 performance
The percentage value of KPI #5 Proportion of Capexaligned to the EU Taxonomy (%) at December 31, 2022 isequal to [81.9]%.

Capex aligned with the EU Taxonomy
Total Capex according to the requirements of article 8of the regulation on EU Taxonomy (2020/852)
Proportion of Capex aligned with the EU Taxonomy
The Assurance Report of KPMG, as Enel’s external verifier,of KPI #5 Proportion of Capex aligned to the EU Taxonomy
is available at the following link: https://www.enel.com/it/
investitori/sostenibilita.

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Calculation method(a) [12,351.0] mil euros(b) [15,088.0] mil euros(a) / (b) [81.9] %1Letter to stakeholders

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Appendix

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