You are here

The sustainable business model

Enel’s sustainable business model considers sustainability and innovation as an inseparable pairing, which creates value for the Company and for all its stakeholders and allows new opportunities to be taken.

Enel integrates sustainability into all aspects of the business, in order to constantly seek out new solutions to reduce environmental impact, to satisfy the needs of customers and of local communities and to improve relations with employees and suppliers by putting people’s safety first. By listening to and actively involving all interlocutors and the rational use of resources, synergy is promoted between economic and social progress in the pursuit of shared value.

Framing the whole process are the principles of ethics, transparency, anti-corruption, respect of human rights and protecting safety, which have always been features of Enel’s way of operating and which are reflected in the conduct policies and criteria which are valid for the whole Group.

A key element to this approach is the activation of the ESG (Environmental, Social and Governance) sustainability indicators across the whole value chain, not only for ex post assessment, but above all in order to bring decisions forward and enhance a proactive and not reactive approach. Enel wants to lead the change and take early advantage of new market opportunities, conscious of the fact that the starting point is awareness of the context in which it operates.

From the definition of strategic guidelines to business development, to the stage of engineering and building a plant, up to its daily operation, the way of operating has been rethought in order to add and create shared and inclusive value in the medium to long term. The effectiveness and the efficiency of business processes, during both development and operations, are heavily dependent on stable and constructive relations with the various stakeholders and the ability to fit synergically into local areas, preventing and managing social and environmental impacts. In order to respond promptly to changes at the Company, to the needs of customers and to transformations in the energy market, it is increasingly necessary to open up to external inputs.

For this reason, Enel has promoted the “Open Innovability” model, activating an increasing number of partnerships worldwide with local organizations, businesses, universities, international associations and NGOs.

Legislative Decree no. 254/2016: non-financial information

The European Union has approved EU Directive 2014/95 which establishes new minimum environmental and social reporting standards, in relation to staff management, respect of human rights and combating active and passive corruption. This Directive aims to introduce and enhance virtuous conduct and has the goal of increasing transparency in the communication of non-financial information and increasing the confidence of investors and stakeholders in general. Legislative Decree no.

254 of December 30, 2016 transposed the European law in Italy. It applies to companies, or to groups of companies, of significant size (total net revenues from sales and services over 40,000,000 euro or total assets on the statement of financial position over 20,000,000 euro) which are bodies of public interest (such as, for example, listed companies) and which have had on average, during the financial year, over 500 employees. The law applies for financial years as from January 1, 2017.

The Enel Sustainability Report has for a number of years been a valid reference point for non-financial information setting out the main data regarding environmental, social and governance issues.

The B Corp community (bcorporation.net) is a global movement of companies which “uses business as a positive force” and which satisfies the highest standards of responsibility and transparency to address and resolve environmental and social problems. Worldwide there are over 2 thousand certified B Corp members and over 50 thousand companies use the B Impact Assessment as an instrument for measurement and continuous improvement.

With the new mission defined in the “Open Power” context, Enel is engaged in resolving some of the greatest challenges of our world, in line with the principles of the change promoted by the B Corp.

During 2016, in order to measure itself against the most innovative experiences, Enel decided to undertake the B Impact Assessment in order to integrate its own analysis and evaluation models and to have a complete vision of the impact caused by the organization and by the initiatives launched. The work is undertaken in collaboration with Nativa (the first B Corp in Europe and Country Partner of B Lab, nativalab.com).

The B Impact Assessment, which was developed by the non-profit body B Lab, was created from the integration of global and independent measurement standards for the evaluation of social and environmental performance. It allows a company to measure its absolute impact and to compare it with the reference benchmark.

The impact evaluation is carried out on 4 analytical areas:

The comparison of Enel’s performance with the reference benchmark has already enabled the identification of some areas for improvement which have been included in the Sustainability Report 2016 or which will be included in future processes for defining the Sustainability Plan.