Roadmap towards natural capital conversation

Enel upholds its commitment to sustainable development by actively promoting the protection of natural capital and the fight against climate change, through the definition of specific targets to reduce impacts, restore habitats and share opportunities and benefits of ecosystem services with the communities with which it interacts, in line with the Environmental Policy⁽¹⁾ and Biodiversity Policy⁽²⁾. 
In 2023, plans set out in the Kunming-Montreal Global Biodiversity Framework (December 2022) at international level were launched, while at European level, regulations are being defined in order to slow the degradation of ecosystems, with the introduction of binding targets for Member States. In particular, at European level, the main lines of action include:

• Nature Restoration Law. The regulation establishes an objective of implementing area-based restoration measures covering at least 20% of the EU’s land and sea area by 2030, and all ecosystems in need of restoration by 2050, requiring Member States to formulate specific national plans. The proposal also includes specific objectives for urban ecosystems, agricultural and forest ecosystems. Enel has actively supported the Commission’s activities, promoting synergies between the restoration of degraded areas and the development of renewable energies.
• Air quality. In 2023, the European Parliament and Council discussed the text of the proposal to revise air quality directives, confirming the introduction of a “zero pollution” objective for 2050, the alignment of European Union air quality standards with WHO (World Health Organization) recommendations, public awareness- raising with respect to atmospheric pollution, the establishment of an air quality index and the introduction of a new right for individuals who suffer from health damage to claim and obtain compensation. Enel actively participates in the review process by promoting the adoption of zero-emission technologies that generate benefits both globally, in terms of GHG reduction, and locally, in terms of reducing atmospheric pollution.
• Industrial emissions. As regards industrial pollution of air, water and soil, an institutional agreement was reached in 2023 on the text of the Industrial Emissions Directive, which establishes new rules and extends their scope to encompass an even greater number of sectors – including large-scale intensive farming – as well as requiring the competent authorities to impose more stringent limits. The new rules are also aimed at increasing transparency and public participation in the authorization process. Enel supported the review process, particularly as pertains to large combustion plants, in line with the commitment it has already adopted for a number of years to progressively adapt power plants powered by fossil fuels, thanks to the introduction of technologies with low emissions of polluting substances. Furthermore, Enel actively supports the development of new technologies, such as electrification based on renewable energy, to support other sectors and uses of energy, such as the transport sector or heating and cooling of buildings.
  
• Soil strategy. As part of the European Union Soil Strategy for 2030, in 2023 the European Commission published a proposal for the first European law on soil monitoring. This directive aims to restore soil and ensure its sustainable use by establishing a robust and coherent monitoring framework for all Member States. In this context, Enel is supporting the proposed strategy, by promoting a circular approach to land management, in particular through the reuse and redevelopment of brownfield sites, as well as the repowering and lifetime extension of wind farms, in order to limit the use of soil. Furthermore, Enel is actively pursuing the reuse of areas within its industrial area. There are several projects on a global scale for the redevelopment of abandoned industrial sites of different sizes and in different contexts, which become a development opportunity for the surrounding area and for the country system.
• Euro 7 standard for vehicles. In 2023, an institutional agreement was reached on the revision of the Euro 7 standards, which establishes limits for pollutant emissions in internal combustion vehicles. The new standards will reduce pollutants for heavy vehicles. In this context, Enel supports the adoption of zero-emission mobility technologies, such as electric mobility.

Furthermore, Enel supports this path through its participation with Eurelectric in the Zero Pollution Stakeholder Platform (“Towards a Zero Pollution Ambition for Air, Water and Soil – Building a Healthier Planet for Healthier People”⁽³⁾).

⁽¹⁾ Since 1996 Enel has adopted a Group Environmental Policy, which was updated in 2018, 2022 and 2024. The Enel Group’s Environmental Policy covers the entire value chain, applying to: (i) all the production phases of every product and service, including distribution and logistics phases, as well as the management of related waste; (ii) each site and building; (iii) all relationships with external stakeholders; (iv) all mergers and acquisitions; in addition, it is shared with (v) key business partners (including partners related to non-managed operations, joint ventures, outsourcing or third-party producers); (vi) every supplier, including service and contractor suppliers; (vii) due diligence and Merger&Acquisition processes.
⁽²⁾ In 2015, Enel published the Group’s Biodiversity Policy, which was updated in 2023 following the release of the Kunming-Montreal Global Biodiversity Framework.
⁽³⁾ COM (2021) 400 final: Communication Pathway to a Healthy Planet for All – EU Action Plan: “Towards Zero Pollution for Air, Water and Soil”.