Enel

Review summary

Reviewed August 2024

Enel performed a double materiality assessment following EFRAG and GRI resulting in nature material topics included in their roadmap: preservation of biodiversity and ecosystems, water management, air, water and soil quality, waste and governance and advocacy for nature and climate change.
Also, following TNFD they assessed dependencies, impact, risks and opportunities. These were prioritized by materiality for the different energy technologies.
For example, soil stabilization and erosion control are important for hydroelectric, renewables plants (photovoltaic and wind), and network infrastructure.
Enel’s materiality assessment is aligned with the TNFD energy sector guidance and when relevant to SBTN.

Enel has SMART targets to address material issues included in their 2024- 2026 Sustainability Plan.
For example, for preservation of biodiversity and ecosystems: No Net Loss (NNL) – implementation on selected projects in high biodiversity areas starting from 2025; – implementation for new infrastructures by 2030.
For mitigating its impacts on climate change Enel has a decarbonization roadmap including targets validated by SBTi.

The company has set and monitors actions to reduce its impacts on nature. These focus on preserving biodiversity and ecosystems, managing water resources, improving air quality, and managing waste.
They follow Mitigation Hierarchy principles to avoid, minimize, and reverse impacts.
For example, for the No Net Loss target: – Enel’s methodology includes site-specific adoption of the NNL principle.
First results of the implementation in the Guayepo III project: a 200 MW solar plant in Colombia. The compensated area will be more than double what was calculated by applying the quantitative No Net Loss methodology developed by Enel.

The Board of Directors plays a central role in Enel’s corporate governance, supported by committees for proper function division and oversight.
For example, “They have the power to investigate, propose and advise, in order to ensure an adequate internal division of its functions, as well as a related party transactions committee”.
In 2023, the Corporate Governance and Sustainability Committee dealt with nature-related issues, reflected in the strategies and related implementation methods.