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Materiality analysis

In order to identify the Group’s priorities for action, the issues on which further disclosure is required and the activities to involve stakeholders which needs enhancing, Enel has for several years now been conducting a materiality analysis, based on the guidelines of the most widespread international standards, such as the Global Reporting Initiative (GRI), the principles of the Communication on Progress (COP) of the UN Global Compact, the framework of the IIRC (International Integrated Reporting Council) and the SDG Compass, a guide which supports companies in aligning their strategies with the Sustainable Development Goals.

The objective is to map and evaluate the priority of the issues of interest to stakeholders, by cross-referencing them with the industrial strategy and with the Group’s priority actions. The analysis, which is conducted in increasing detail in terms both of the issues and the geographic scope, enables company and stakeholder priorities to be identified both for the whole Group and for each individual country. In addition, it enables results to be obtained with a specific focus, such as the matrix solely for the “Financial community” stakeholder category, which can identify the issues to be addressed in more detail in the Annual Report, in order to provide an integrated report on performance. On the basis of the results of the materiality analysis, the main areas for reporting are then established and challenging and agreed objectives are set and included in the Strategic Plan 2017-2019. These objectives are then achieved thanks to the contribution from the activities and projects of different Divisions and Business Lines in the Group, which are set out in the Sustainability Plan 2017-2019.

The process

As part of the analysis, the Group’s main stakeholders are identified and are evaluated on the basis of their importance for the Company. Consideration is given to the priority they give to the various issues in the numerous initiatives in which they are involved. This information is then compared with the assessment of the issues on which Enel plans to focus its efforts, with the related priority value. Here below are the main stages in the process.

During 2016, Enel further enhanced the materiality analysis, launching in the main countries where it is present a pilot project to monitor stakeholders’ level of satisfaction with the Company’s means of controlling the various issues. The results obtained, which are compared with the stakeholders’ priority analysis, allow an overall vision to be obtained of stakeholders’ expectations and help identify the issues that the Company must focus on.

The supporting IT tool has been further enhanced in order to guarantee greater traceability and sharing of best practices to involve and monitor stakeholders and to enable a level of cover which is aligned to the company organizational model. It is thus possible to identify priorities not only at Group and individual company level, but also by Business Line/Company Function, by individual project which is to be developed or is ongoing and also by the various stakeholder categories.

In particular in the past year it was possible to include in the analysis:

228Initiatives involving stakeholders

The Sustainability Holding unit has a role in direction and coordination, providing the guidelines and the methodological support for the purposes of the analysis which is carried out by local managers with the involvement of stakeholders and the main key figures at company level. The results obtained at the level of the individual company and/or country are subsequently consolidated by the Holding in order to prepare the matrix of the Group’s priorities (refer to the Methodological Note for detailed information on the process used).