European Union taxonomy

Enel welcomes the development of the EU Taxonomy Regulation 2020/852, 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 the decarbonization of the European economy, while at the same time creating reliability and transparency for investors and supporting companies in planning the Net Zero transition. 
Please note that EU taxonomy reporting is included in full in the “2023 Sustainability Report - Consolidated NonFinancial Statement” prepared as required by Article 8 of the European Taxonomy Regulation 2020/852, complying with the criteria established in the other delegated acts issued by the European Commission and available on the date of publication of the Sustainability Report.
More specifically, the EU taxonomy reporting has been implemented based on the following regulations:

• Delegated Regulation (EU) 2021/2139 of June 4, 2021 (Climate Delegated Act);
• Delegated Regulation (EU) 2021/2178 of July 6, 2021 (Disclosures Delegated Act);
• Delegated Regulation (EU) 2022/1214 of March 9, 2022 (Complementary Climate Delegated Act);
• Delegated Regulation (EU) 2023/2485 of June 27, 2023 amending the Climate Delegated Act;
• Delegated Regulation (EU) 2023/2486 of June 27, 2023 (Environmental Delegated Act). 

In a process overseen by the CEO and top management, involving the relevant functions at corporate and country level, as well as all business lines, a fivestep process is in place to analyze the applicability of the EU Taxonomy Regulation throughout the entire value chain and in all countries where we operate.
For more on the phases of the implementation process for the European taxonomy, please see the “2023 Sustainability Report – Consolidated Non-Financial Statement”.
Through this process, Enel has classified all economic activities along its value chain for their contribution to the climate change mitigation objective, which is the most relevant for the Group, according to the following three categories: eligible aligned, eligible nonaligned, and noneligible. 

It is important to note that activities classified as eligible aligned from a climate change mitigation perspective also include adaptation solutions (mainly in the design and construction phase of assets) and are therefore also eligible aligned for this other objective.
However, the existence of the category “non-eligible” makes it impossible to achieve a business model that is fully aligned with the criteria of the EU Taxonomy Regulation, even though these might not cause any harm to the EU’s environmental objectives.