The identification of issues is based on the analysis of internal and external sources and takes into consideration the various geographical situations, the developments in the sector and corporate processes1. The issues have been classified into business and governance issues (white), social issues (fuchsia) and environmental management issues (green) and have been assessed on the basis of their relevance by both stakeholders and by the Company. The reading of the matrix of priorities in regard to each axis leads to consideration of:
- on the horizontal axis, the priority which stakeholders, duly calibrated on the basis of their importance, attribute to the various issues. In the right-hand part of the matrix are, therefore, the issues on which stakeholders request more commitment from the Group in terms of investments, enhancement of existing management practices and systems, formalization of clear commitments and policies;
- on the vertical axis, the issues on which Enel plans to focus its efforts, with the related degree of priority, also in consideration of the investments envisaged, the commitments entered into and the issues included in the Group Strategic Plan. In the high part of the matrix we can therefore find the issues on which a serious commitment is envisaged for coming years, as part of the Group’s strategic objectives.
The contributions of the main Group companies involved in the process are taken into consideration in the overall matrix for the Group on the basis of the importance of these companies in relation to the type of business they operate in. The combination of the two perspectives enables the most important issues both for the Company and for stakeholders to be identified (so-called material issues), and consequently the level of alignment or misalignment between external expectations and internal relevance to be verified.
The analysis shows broad alignment between what stakeholders are asking for and the priorities attributed by the Company to the different issues in relation to its business.
- Business and governance issues: Enel’s strategy aims at a sustainable business model based on industrial growth strongly focused on networks and renewables, on digitalization and customer service.
- Social issues: the main focus is on people’s health and safety, an issue which has been carefully monitored for a long time and which continues to be one of the key priorities for the Company. Responsible relationships with communities is becoming increasingly important confirming Enel’s decision to focus on creating shared value.
- Environmental issues: climate change strategy is the main element of interest for the Company and is aligned with the expectations of stakeholders, as shown by Enel’s long-term strategy and the commitment to achieve carbon neutrality in 2050.
The materiality matrix 2016
The priorities attributed by stakeholders to the pillars of Enel’s strategy
In keeping with the company strategies and with the classification of the issues adopted in setting the strategic objectives identified in the Sustainability Plan2, here below are set out the priorities attributed by various stakeholders to the so-called “pillars”, in other words those issues to which the Company, also in regard to the macro-economic changes and sustainability context in which it operates, pays particular attention in terms of investments, monitoring and awareness-raising in coming years.
The comparison of the priorities attributed by stakeholders over the last two years, shows us that climate strategy and renewable energies are confirmed as the two priority issues for all stakeholder categories. Responsible relationships with communities in operations where Enel works continues to be very important; on the other hand, support for local communities has a slightly lower priority compared to 2015, in keeping with the approach of creating shared value adopted by the Company, which aims to align its business objectives with the needs and expectations of local communities. For further information see the section “Responsible relationships with communities”. In addition, the stakeholders have ascribed increasing priority to the issue of traditional technologies, in the sense of optimizing the energy mix and reconverting traditional plants, as well as to management, development and motivation of people, with a focus on valorization of diversity and on the quality of corporate life in the company.
Economic and financial value creation, Occupational health and safety, Sound governance, Responsible use of water resources, Fair corporate conduct, Mitigation of environmental impacts, Sustainability in the supply chain, Biodiversity and protection of natural capital are also key elements of Enel’s sustainable business model (the so-called backbone issues) and are, like the pillars, evaluated by the stakeholders.
1 For further information on the methodology of the materiality analysis, refer to the methodological note.
2 Refer to section Strategy and Sustainability Plan for details on the classification of issues into pillars and backbones.