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Index Index

World Economic Forum (WEF)

The International Business Council (IBC) of the World Economic Forum has produced a report entitled “Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation”, with the aim of defining shared common metrics to measure, report and compare levels of sustainability, i.e., the effectiveness of its actions in pursuing the Sustainable Development Goals set by the United Nations (SDGs), in the business model adopted to create value for stakeholders. The metrics are based on existing standards and seek to increase convergence and comparability between the various parameters used today in sustainability reports. The following table gives the 21 main indicators specified in the WEF report.

World Economic Forum

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Our commitment to a just transition

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Consolidated financial statements

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Report on operations: value-creation

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Report on operations: Group performance

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Glossary

ACT

Word
ACT
Definition
Actual – when associated with one or more items of data, the term describe results that have been achieved, as opposed to estimated or forecast results. In a full reporting system, “actual” data are generally compared with “budget” data (see “BDG”).

AIFIRM

Word
AIFIRM
Definition
Associazione Italiana Financial Industry Risk Managers - an association representing Italian-based risk managers from the financial, banking and insurance sectors.

AM

Word
AM
Definition
Adjustment Market - a trading venue where producers, wholesalers and end-customers can change the input/withdrawal programs established on the Day-Ahead Market (DAM): it was superseded by the Intra-Day Market (IDM) on November 1 2009.

APA

Word
APA
Definition
Advanced Pricing Agreement - a type of agreement widely used in OECD countries, under which one or more tax-paying entities and one or more tax authorities establish, in advance, the criteria and technical procedures for applying the principle of free competition to intercompany transactions (Transfer Pricing), so as to prevent disputes over transfer pricing. An APA can be unilateral, bilateral or multilateral, depending on how many financial administrations are involved in the agreement.

API indices

Word
API indices
Definition
All Publications Index - a price index for hard coal. API 2: A price index for hard coal with a calorific value of approximately 6,000 kcal/kg imported into North-West Europe (Amsterdam-Rotterdam-Antwerp). The financial quotation is shown including CIF (Cost, Insurance and Freight) and NAR (Net As Received) in US$ per tonne. API4 - An FOB (Free On-Board) price index for hard coal deliveries to the Richards Bay hub (South Africa) API6 - An FOB price index for Australian hard coal.

ARA

Word
ARA
Definition
Amsterdam-Rotterdam-Antwerp – refers to the ports of Amsterdam, Rotterdam and Antwerp, where transactions for refined products are used as indicators for the North-West Europe market.

ARS

Word
ARS
Definition
Argentine peso.

B2B

Word
B2B
Definition
Business to Business - commercial transactions between companies, as opposed to commercial transactions between companies and other categories of customer. It represents the relationships that a company has with its suppliers for the purposes of procurement, production planning and monitoring, or product development, or the relationships that the company has with professional customers, i.e. other companies at different points in the production chain.

B2C

Word
B2C
Definition
Business to Consumer - describes the relationships that a commercial company has with its customers for the purposes of sales and/or support.

B2G

Word
B2G
Definition
Business to Government - describes commercial transactions between businesses and government bodies. Also known as Business to Administration (B2A).

BDG

Word
BDG
Definition
Budget - a management and accounting tool for planning and controlling operational, economic and financial activities in a company's first year of planning.

BESS

Word
BESS
Definition
Battery Energy Storage System - a battery-based system for storing energy. BESS systems are used to store energy and release it at times of peak energy demand or when renewable energy sources are unavailable. BESS systems can also provide frequency and voltage regulation services in the power grid.

BEV

Word
BEV
Definition
Battery Electric Vehicle. A type of vehicle powered by a battery-operated electric motor. Unlike internal combustion vehicles, which burn fuel to produce energy, BEVs do not emit pollutants into the environment.

BRL

Word
BRL
Definition
Brazilian real.

BSO

Word
BSO
Definition
Build, Sell and Operate. In the renewable energy industry, this means selling assets in order to generate revenue, while remaining responsible for their operation and operational management.

Brent

Word
Brent
Definition
“Brent” is the term used to describe crude oil extracted from the North Sea. The name derives from the Brent oil field, off the coast of Scotland, which was one of the first oil fields discovered in the region. Brent crude has become a major benchmark for global oil prices and is seen as a high-quality oil with a low sulfur content and a relatively high density.

Business Line

Word
Business Line
Definition
An umbrella term referring to a more specific area in which a company performs its services.

Business model

Word
Business model
Definition
A business model defines the logic of how companies create, convey and acquire value in economic, social, cultural or other contexts. Each company has its own specific business model that, in the course of work organization, can undergo major transformations due to both innovation and change.

CAGR

Word
CAGR
Definition
“CAGR” stands for “Compound Annual Growth Rate” and indicates the growth in value of an investment or business asset over a specific period of time.

CBAM

Word
CBAM
Definition
Carbon Border Adjustment Mechanism – forming part of the framework of the European Green deal, the Carbon Border Adjustment Mechanism is a European Union Regulation, proposed by the European Commission in 2021 and provisionally agreed by European legislators in December 2022, concerning environmental customs duties on the importation of products with high greenhouse gas emissions into the European Union. EU importers will purchase carbon certificates corresponding to the carbon price that would have been paid if the goods had been produced under EU carbon pricing rules. Conversely, where a non-EU producer can show that they have already paid a price for the carbon used in the production of the imported goods in a third country, that cost can be fully deducted for the EU importer. The CBAM will help reduce the risk of carbon leakage (i.e. the transfer of production to countries with laxer emissions constraints) by encouraging producers in non-EU countries to green their production processes.

CCGT

Word
CCGT
Definition
Combined Cycle Gas Turbine – a gas-fired combined cycle power plant, in which two thermodynamic cycles (a gas cycle and steam cycle) take place in series, thus increasing thermodynamic efficiency compared to a scenario where both cycles take place independently, and making more effective use of the fuel.

CCIRS

Word
CCIRS
Definition
Cross Currency Interest Rate Swap - a swap contract in which the parties exchange payments at two different rates and in two different currencies.

CCS

Word
CCS
Definition
Carbon Capture and Storage – a technology used to prevent the release of large amounts of carbon dioxide into the atmosphere, by separating the carbon dioxide from the emissions and injecting it into geological formations.

CDM

Word
CDM
Definition
Clean Development Mechanism – defined in article 12 of the Protocol, the CDM allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.

CDP Climate

Word
CDP Climate
Definition
Carbon Disclosure Project - the CDP is an international non-profit organization that provides companies, local authorities, governments and investors with a global system of environmental measurement and reporting. The CDP provides a system for measuring, recording, managing and sharing global climate-change information.

CDS

Word
CDS
Definition
Clean Dark Spread - the CDS is the difference between the wholesale price of electricity and the cost of the coal and carbon needed to produce 1 MWh of electricity. It refers to the power (earnings side) and coal/CO2 (cost side) exposure arising from generating energy with a coal-fired power plant.

CER

Word
CER
Definition
Certified Emission Reduction - A tradable emissions unit issued under the UN’s Clean Development mechanism (see CDM).

CF@R

Word
CF@R
Definition
Cash Flow at Risk - a risk metric for measuring the maximum potential decrease in expected cash flows resulting from market volatility and correlation, with a given confidence level, over a given period of time (holding period).

CFC

Word
CFC
Definition
Controlled Foreign Companies - a concept used by EU tax systems to prevent tax avoidance. It is part of a tax regime designed to counter the fictitious allocation of significant earnings to controlled foreign companies registered in low-tax countries, especially for companies that do not systematically distribute dividends.

CFD

Word
CFD
Definition
Contract For Difference - CFDs are a financial instrument whose price derives from the value of other types of investment instruments. Instead of involving the physical trading or exchange of a financial asset, a CFD is a transaction in which two parties – a seller and a buyer – agree to exchange money based on the change in the value of the underlying asset between the time the transaction is opened and the time it is closed. If the value of the underlying asset increases, the buyer makes a profit and the seller makes a loss. Conversely if its value decreases, the seller makes a profit and the buyer makes a loss.

CGE

Word
CGE
Definition
Computable General Equilibrium - a macroeconomic theory that attempts to explain how demand, supply and prices for different products are interrelated and simultaneously determined by market forces according to a mechanism known as "general equilibrium".

CLP

Word
CLP
Definition
Chilean peso.

CME

Word
CME
Definition
Chicago Mercantile Exchange - a global derivatives market based in Chicago. The CME is currently the largest open-interest options and futures exchange in the world (by number of contracts in place). The CME trades various types of financial instruments, including interest rates, shares, currencies and commodities. In 2008, its shareholders approved a merger with the New York Mercantile Exchange (NYMEX).

CO2

Word
CO2
Definition
Carbon dioxide - a colorless, odorless gas, produced naturally by animals during respiration and through the decay of biomass, and used by plants during photosynthesis. Although it accounts for only 0.04% of the atmosphere, it is one of the most important greenhouse gases. The burning of fossil fuels is increasing the concentrations of carbon dioxide in the atmosphere, which is believed to contribute to global warming.

CO2 equivalent

Word
CO2 equivalent
Definition
A standardized unit of measurement of greenhouse gases other than CO2, determined by converting amounts of these other gases to the equivalent amount of carbon dioxide with the same global warming potential, where CO2 equals 1. Under the Kyoto Protocol, the following greenhouse gases must be taken into consideration: carbon dioxide (CO2, hence the term “carbon footprint”), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). This parameter can be used to determine the environmental impacts of emissions on anthropogenic climate change.

COP

Word
COP
Definition
Colombian peso.

CPI

Word
CPI
Definition
Consumer Price Index - a statistical measurement calculated by averaging the weighted prices of a specific basket of goods and services. This basket is based on the purchasing patterns of an average consumer. The most widely used consumer price index is the index number that measures the change over time in the weighted average of prices paid in transactions relating to consumer goods and services traded between economic operators and private end-consumers (free-of-charge transactions, intermediate transactions and transactions involving public bodies are not taken into account when determining the index). This type of index therefore measures the increase in the general level of prices, i.e. consumer inflation for the period concerned (measurement of the cost of living for the specific period).

CSR

Word
CSR
Definition
Corporate Social Responsibility - corporate policies and practices designed to harmonize economic goals with the social and environmental goals of the geographical area concerned, with a view to promoting sustainability. It is a voluntary form of responsibility that companies tend to assume in relation to their main stakeholders.

CSS

Word
CSS
Definition
Clean Spark Spread – the CSS is the difference between the wholesale price of electricity and the cost of the coal and carbon needed to produce 1 MWh of electricity. It refers to the power (earnings side) and gas/CO2 (cost side) exposure arising from generating energy with a gas-fired power plant.

CSV

Word
CSV
Definition
Creating Shared Value - the CSV approach involves reconciling the company perspective with the social, economic and environmental needs of the community in which a company operates, with a view to identifying choices that generate value for both parties.

CapEx

Word
CapEx
Definition
CAPital EXpenditure. In business economics, “CapEx” denotes capital outlays on investments in non-current assets for operational purposes. In practice, this means funds used by a company to acquire, maintain and implement physical assets such as buildings, land, plants or equipment.

Carbon Footprint

Word
Carbon Footprint
Definition
“Carbon Footprint” is a parameter used to estimate greenhouse gas emissions from a product, service, organization, event or individual, generally expressed in CO2 equivalent (i.e. by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential, where CO2 equals 1).

Carbon Neutral

Word
Carbon Neutral
Definition
The term “carbon neutral” describes a situation where an entity’s CO2 emissions are fully offset by its carbon removal processes.

Circular economy

Word
Circular economy
Definition
A concept linked to the definition of business models aimed at decoupling economic and industrial activities from resource consumption (although, in public opinion, it has been mainly and improperly associated with the issue of waste recycling). Leveraging a major institutional recognition, which occurred with the EU’s 2015 Circular Economy Package, it subsequently became one of the cornerstones of the European strategy in 2020 with the Green New Deal (Circular Economy Action Plan).

Climate Neutral

Word
Climate Neutral
Definition
The term “climate neutral” describes a state of equilibrium between greenhouse gas emissions and the absorption of greenhouse gases from the atmosphere.

Consolidated income statement

Word
Consolidated income statement
Definition
A document that is part of the Consolidated Financial Statements and consists of a classification of costs according to their nature, with a separate presentation of the net profit (loss) from continuing operations and discontinued operations attributable to shareholders of the Parent Company and to third parties.

D&A

Word
D&A
Definition
Depreciation & Amortization – a component part of the cash flow calculation intended to exclude from EBITDA the share of costs incurred in a given year but attributable to subsequent years, and the share of future charges attributable to a given year but which have not yet been paid.

DAM

Word
DAM
Definition
Day-Ahead Market - the venue where electricity sales and purchases are negotiated on the Italian free market. It enables eligible producers, wholesalers and end-customers to sell or buy electricity for the next day.

DPS

Word
DPS
Definition
Dividend Per Share - the sum of the declared dividends issued by a company for each ordinary share in circulation.

DSM

Word
DSM
Definition
Dispatching Services Market - the market on which Terna S.p.A. (Italy’s TSO) procures the necessary resources for managing and controlling the system (resolving intra-zone congestion, creating an energy reserve and real-time balancing). On the DSM, Terna acts as a central counterparty and pays for accepted offers at the price quoted by the bidder (pay-as-bid).

DSR

Word
DSR
Definition
Demand-Side Response - in the energy market, the term “DSR” describes active participation in the market by demand-side entities, i.e. major industrial consumers and aggregated – and duly regulated – groupings of consumers (industrial, commercial). These consumers can modulate their energy consumption, upwards or downwards, in response to market signals, in exchange for an economic benefit. This service helps modulate peaks in supply or demand, thus enhancing the flexibility and stability of the grid.

Direct Emissions

Word
Direct Emissions
Definition
Direct greenhouse gas emissions are emissions from sources owned or controlled by the reporting entity. These emissions can also be referred to as scope 1 emissions.

E2E

Word
E2E
Definition
End-to-End - under the end-to-end principle, where two applications communicate over a network, all the specific functions and operations required by those applications, such as error checking, must be fully implemented and executed at the end nodes (or end points) and not at the intermediate nodes of the network.

EA

Word
EA
Definition
Equivalent Asset – a functional unit, specific to a Business Line, assumed to represent organizational complexity from an environmental point of view and the related business volumes: For GPG: 500 MW of installed capacity. For GIN and ENEL X: million hours worked.

EBIT

Word
EBIT
Definition
Earnings Before Interest and Taxes - represents operating income before the deduction of financial expense and taxes. Also known as Operating Income Before Taxes.

EBITDA

Word
EBITDA
Definition
Earnings Before Interest, Taxes, Depreciation and Amortization - represents gross operating margin and is an indicator of operational performance. It is the sum of “operating income” and “depreciation, amortization and impairment losses”.

EBT

Word
EBT
Definition
Earnings Before Taxes - represents income before the deduction of taxes.

ECB

Word
ECB
Definition
European Central Bank - The European Central Bank (ECB) is the central bank of the European Union and is responsible for Euro Zone monetary policy.

ECB

Word
ECB
Definition
European Central Bank - The European Central Bank (ECB) is the central bank of the European Union and is responsible for Euro Zone monetary policy.

EDF

Word
EDF
Definition
Électricité de France.

EDP

Word
EDP
Definition
Energia de Portugal.

EGM

Word
EGM
Definition
Extraordinary General Meeting - a general meeting of all company members, held to discuss important matters that cannot be deferred until the next annual general meeting.

EIA

Word
EIA
Definition
Energy Information Administration - the statistical and analytical agency of the United States Department of Energy. The EIA collects, analyzes and disseminates independent, impartial energy information to promote rational policy-making, efficient markets and public understanding of energy and its interaction with the economy and the environment. EIA programs cover data on coal, oil, natural gas, electricity, renewable energy and nuclear energy.

EM

Word
EM
Definition
Emerging Markets - an emerging market (or an emerging country or an emerging economy) is a market that has some of the characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or have been developed markets in the past. The term "frontier market" is used to describe developing countries whose capital markets are smaller, riskier or less liquid than those of "emerging" countries. Since 2006, the Chinese and Indian economies have been considered the largest emerging markets. The nine largest emerging and developing economies by nominal GDP or PPP-adjusted GDP are the BRICS countries (Brazil, Russia, India, China and South Africa), along with Indonesia, South Korea, Mexico, Saudi Arabia and Turkey.

EMIR

Word
EMIR
Definition
European Market Infrastructure Regulation - EU Regulation no. 648/2012 concerning OTC derivatives, central counterparties and trade repositories.

EPS

Word
EPS
Definition
Earnings Per Share - the earnings a company has generated, divided by the number of shares it has issued.

ERU

Word
ERU
Definition
Emission Reduction Unit - a tradable emissions unit issued under the UN’s Joint Implementation (JI) process.

ESG

Word
ESG
Definition
Environmental, Social, Governance - denotes the three key criteria for measuring the environmental, social and governance impact of companies with a view to maintaining sustainable business practices. In economics and finance, these criteria are used to denote all activities relating to responsible investment that pursue the typical goals of financial management, while taking account of environmental, social and governance aspects.

ESMA

Word
ESMA
Definition
European Securities and Markets Authority - the aim of the ESMA is to improve investor protection and promote stable and orderly financial markets.

ETR

Word
ETR
Definition
Effective Tax Rate - the total tax burden on pre-tax profit in percentage terms (taxes/pre-tax profit). For calculation purposes, account is only taken of the income taxes that apply to the total amount allocated to the income statement (current taxes, deferred taxes, withholding taxes, etc.).

EU

Word
EU
Definition
European Union - a supranational political and economic organization, comprising 27 Member States.

EU ETS

Word
EU ETS
Definition
European Union Emissions Trading System - a system for greenhouse gas emissions allowance trading aimed at reducing emissions in the most energy-intensive sectors (electricity, cement, steel, aluminum, brick and ceramic, glass, chemicals, aviation, etc.) in the European Union.

EUA

Word
EUA
Definition
European Union Allowances - CO2 emissions allowances under the European Union Emissions Trading System.

EV

Word
EV
Definition
Electric Vehicle - a means of transport propelled by an electric motor, which is normally powered by rechargeable batteries, but which can also be connected to overhead power lines, conductive rails or power strips for lateral sliding contacts. Depending on design needs or characteristics, electric vehicles can be equipped with 1, 2, 3, 4 or more wheels. Electric vehicles include road and rail vehicles, surface and underwater vessels, electric aircraft and electric spacecraft.

European Union taxonomy

Word
European Union taxonomy
Definition
The European taxonomy (adopted by the European Union in Regulation (EU) 2020/852) defines six environmental objectives for identifying sustainable economic activities from an environmental perspective: climate change mitigation; climate change adaptation; sustainable use and protection of waters and marine resources; transition to a circular economy; prevention and reduction of pollution; protection and restoration of biodiversity and ecosystems.

FCF

Word
FCF
Definition
Free Cash Flow - the cash flow available to a company, i.e. the difference between cash flow from operating assets and cash flow for capital expenditure.

FCT

Word
FCT
Definition
Forecast - a tool for monthly re-forecasting of economic and financial targets for the current financial year.

FFO

Word
FFO
Definition
Funds From Operations - the figure used by Real Estate Investment Trusts (REITs) to calculate the cash flow from their operations. More specifically, FFO is intended to describe trends in monetary revenues and expenses arising from the management of the fund in question. FFO is calculated on the basis of pre-tax profit (profit for the period), plus current taxes, changes in depreciation and amortization, the net change in the market value of property and any write-downs. The ratio of FFO/Revenues is frequently used as an indicator in this sector because it provides the percentage of fund revenues that actually turn into cash flows for holders of shares in the fund.

FS

Word
FS
Definition
Fuel Switching – the practice of replacing one energy source with another to meet the needs of heat, power and/or electricity generation.

FTE

Word
FTE
Definition
Full-Time Equivalent - the number of full-time resources needed to carry out a given activity, or employed by a company, in relation to the total number of resources used or employed, where some resources are employed on a part-time basis.

FWD

Word
FWD
Definition
Forward - a trading contract, on the over-the-counter (OTC) market, relating to an underlying physical or financial asset (energy, commodities, etc.). It is a symmetrical derivative contract because both parties to the contract are obliged to perform a service on maturity. The long party undertakes to purchase the underlying asset on the agreed date at the agreed price, whereas the short party undertakes to sell the underlying asset on the same date and at the same price.

FX

Word
FX
Definition
Forex or FOReign EXchange - the exchange rate can be defined as the number of units of a foreign currency that can be purchased with one unit of national currency.

FX HR

Word
FX HR
Definition
Foreign Exchange Hedge Ratio - the portion of gross debt not exposed to exchange rate variations, taking account of hedging derivatives and the natural hedging arising from Funds From Operations (FFOs), to provide a measurement of the impact of exchange rate fluctuations on financial expense (interest payments and capital repayments).

FY

Word
FY
Definition
Fiscal Year - the fiscal year is a designated twelve-month period used for the purposes of budgeting, accounting and all other financial reports for businesses.

Financial Report

Word
Financial Report
Definition
The document that reports the items on the Income Statement and those on the Balance Sheet, explaining where the company’s liquidity is generated and where it is absorbed. The Consolidated Statement of Cash Flow is prepared by using the indirect method, with separate presentation of cash flow from operating assets, investment activities and financing activities associated with discontinued operations.

GCC

Word
GCC
Definition
Gas Combined Cycle - technology for gas-fired thermoelectric power plants.

GDP

Word
GDP
Definition
Gross Domestic Product - GDP is a macroeconomic metric for measuring the aggregate value, at market prices, of all finished goods and services (i.e. excluding intermediate products) produced in a given country over a given period of time (normally the calendar year, but other time-frames are also used).

GHG

Word
GHG
Definition
Greenhouse Gases - gases in the earth’s atmosphere that trap heat and are the main contributors to climate change. They are emitted into the atmosphere by human activity, especially combustion processes (but there are others). The main greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). Greenhouse gases do not include water vapor, the main contributor to the natural greenhouse effect, which is essential for life on Earth (see also CO2 equivalent).

GME

Word
GME
Definition
Gestore dei Mercati Energetici - the company responsible organizing and managing the electricity market in Italy, as well as providing the economic management of an adequate reserve of power.

GNI

Word
GNI
Definition
Gross National Income - GNI is calculated by adding or subtracting, depending on the type of flow, various cross-border income streams to or from gross domestic product (GDP). Or Group Net Income - the net income of the Enel Group.

GPP

Word
GPP
Definition
Green Public Procurement - the integration of environmental considerations into the purchasing procedures of government bodies, in other words, a means of choosing "goods and services with a lower or reduced impact on human health and the environment than other goods and services used for the same purpose". (U.S. EPA 1995). 'Green procurement' therefore means buying a good/service partly on the basis of the environmental impacts it may have throughout its life-cycle, from extraction of the raw material to the disposal of waste (i.e. "from cradle to grave"). Green Public Procurement practices involve setting environmental qualification criteria in the specifications that public bodies issue when purchasing goods and services, with a view to reducing their environmental impact, while also nudging the market as a whole towards more environmentally-friendly products. Public procurement accounts for about 17% of Gross Domestic Product (GDP) in Italy and about 14% across the rest of the European Union.

GRI Content Index

Word
GRI Content Index
Definition
The GRI Content Index sets out the references and reporting tools used to prepare the report in accordance with the relevant GRI Industry Standards and Electric Utilities Sector Disclosure.

Green Bond

Word
Green Bond
Definition
The term “green bonds” refers to any type of bond from which the proceeds are to be used exclusively to finance or refinance eligible new and/or existing green projects, either partially or in full.

Green Deal

Word
Green Deal
Definition
An integrated European action plan that leverages digital technology and innovation to promote efficient use of resources, restore biodiversity and reduce pollution.

Green Loan

Word
Green Loan
Definition
Any type of loan made available for the sole purpose of financing or refinancing eligible new and/or existing green projects, either partially or in full. The crucial distinguishing feature of a Green Loan is that its proceeds must be used for “green projects”.

Group ordinary net income

Word
Group ordinary net income
Definition
Defined as the “Group net income” attributable exclusively to ordinary operations, it is equal to the “Group net income”, net of any tax effects and effects on third-party interests, of the items previously discussed in “Ordinary operating income”.

HDD

Word
HDD
Definition
Heating Degree Day - a measurement used to quantify demand for heating energy.

HEV

Word
HEV
Definition
Hybrid Electric Vehicles – an HEV is a vehicle equipped with a drive system based on two or more components, such as an electric motor with a combustion engine, that work in synergy with each other.

HH

Word
HH
Definition
Henry Hub - a natural gas distribution hub in Earth, Louisiana, owned by Sabine Pipe Line LLC, a subsidiary of EnLink Midstream Partners LP. Because of its importance, it has given its name to the price point of forward contracts on natural gas traded on the New York Mercantile Exchange (NYMEX) and OTC swaps traded on the InterContinental Exchange (ICE).

HR

Word
HR
Definition
Human Rights - the fundamental human rights recognized by the United Nations Universal Declaration of Human Rights.

HR DD

Word
HR DD
Definition
Human Rights Due Diligence - a process for monitoring the implementation of human rights policy and adherence to the guiding principles of the United Nations and the OECD Guidelines on Responsible Business Conduct.

ICE

Word
ICE
Definition
InterContinental Exchange - a US-based financial company founded in 2000, which operates in Internet-based markets and trades futures and energy, commodities and financial derivatives in over-the-counter markets. Initially the company focused mainly on energy products (crude and refined oil, natural gas, etc.) but has since extended its activities to commodities, such as sugar, cotton and coffee, and foreign exchange. Or International Currency Exchange - a global currency exchange company based in London. The ICE is one of the largest retail exchange operators in the world.

ICE Vehicles

Word
ICE Vehicles
Definition
Internal Combustion Engine - conventional vehicles powered by internal combustion engines.

ICMA

Word
ICMA
Definition
International Capital Markets Association - a self-regulatory organization for capital market participants. Although the name suggests that its remit is global, its focus is in fact European. The stated objectives of the ICMA are to promote high standards of market practice, appropriate regulation, commercial support, education and communication. It produces standard documentation for transactions such as share and debt issuance and repurchase agreements.

IDM

Word
IDM
Definition
Intra-Day Market - the IDM provides 7 sessions (IDM 1, 2, 3, 4, 5, 6 and 7) in which producers and wholesalers can change the input programs established on the DAM (the IDM superseded the Adjustment Market [AM] in 2010).

IEA

Word
IEA
Definition
International Energy Agency - An intergovernmental organization of the Organization for Economic Cooperation and Development (OECD) based in Paris and established as an international research institute on energy policy and the environmental impact of energy sources.

IFRS

Word
IFRS
Definition
International Financial Reporting Standards - a set of international standards, used in the EU, for the preparation of annual and consolidated financial statements. Their purpose is to increase transparency for the benefit of investors.

IMF

Word
IMF
Definition
International Monetary Fund - the IMF is a public international organization of a universal nature, composed of the national governments of 190 countries. Together with the World Bank Group, it forms part of the Bretton Woods system, which is named after the place where the conference that endorsed its creation was held.

INECP

Word
INECP
Definition
Integrated National Energy and Climate Plan – a plan drawn up jointly by Italy’s Environment Ministry and Infrastructure and Transport Ministry and submitted to the European Commission pursuant to Regulation (EU) 2018/1999 (December 2018). It sets out the national targets for 2030 for energy efficiency, renewables and CO2 emission reductions, as well as targets for energy security, interconnections, the single energy market and competitiveness, and sustainable development and mobility. For each field, it outlines the measures that will be taken to achieve the target concerned.

IPCC

Word
IPCC
Definition
Intergovernmental Panel on Climate Change - the leading international body for evaluating climate change. The IPCC was established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Program (UNEP) in order to provide the world with a clear and scientifically founded view of the current state of knowledge on climate change and its potential environmental and socio-economic impacts.

IR HR

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IR HR
Definition
Interest Rate Hedge Ratio - the portion of gross debt not exposed to interest rate variations, taking account of hedging derivatives, to provide a measurement of the impact of interest rate fluctuations on interest payable.

IRR

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IRR
Definition
Internal Rate of Return – a metric used in financial analysis to determine how attractive a particular project or investment may be, and to help choose between possible projects or investment options under consideration. In general, an investment project is attractive if the IRR is higher than the opportunity cost of the capital (or other reference rate, chosen on the basis of considerations relating to the specific investment and/or on the basis of the WACC).

Incentives system

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Incentives system
Definition
Systems that, within the broader Total Reward management framework, link the recognition of a variable proportion of remuneration to the achievement of certain results, in line with the remuneration policy defined by the company. The purpose of this policy is to: (i) promote corporate performance and sustainable success, which is based on the creation of long-term value to the benefit of its shareholders, taking into due consideration the interests of other relevant stakeholders, so as to encourage the achievement of strategic goals; (ii) attract, retain and motivate people with the skills and professionalism required for the delicate managerial tasks assigned to them, taking into account the compensation and working conditions of the company’s employees; (iii) promote the company’s mission and values.

Indirect Emissions

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Indirect Emissions
Definition
Indirect GHG emissions are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by a different entity. For example, emissions from the consumption of purchased electricity, heat or steam (scope 2) and emissions from the extraction and production of purchased materials and fuels; activities relating to transport by vehicles not owned or controlled by the reporting entity; activities relating to electricity (e.g. T&D losses), outsourced activities, waste disposal, etc.

Industrial Plan

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Industrial Plan
Definition
A multi-year planning tool used to translate objectives for future financial years into economic and financial terms.

JCC

Word
JCC
Definition
Japan Crude Cocktail - the informal nickname given to the crude oil price index used in most East Asian countries. Published by the Petroleum Association of Japan, the JCC represents the average price of customs-cleared crude oil imports into Japan. Historically, the JCC was the main index for pricing Liquefied Natural Gas (LNG) contracts, as there was no global benchmark. However, as the JCC is based on oil prices as opposed to gas, there have been growing objections to its use. In Europe and most North American countries, LNG pricing has shifted away from the JCC to gas-based indexes (e.g. Henry Hub).

JKM

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JKM
Definition
Japan Korean Marker - a virtual market in which natural gas is traded in Japan, South Korea, China and Taiwan. As an index, it is a benchmark price for liquefied natural gas (LNG).

JV

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JV
Definition
Joint Venture - an agreement between companies, whether of the same or different nationalities, to undertake a given project, within a limited time-frame, while sharing the risks and profits.

KPI

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KPI
Definition
Key Performance Indicator - an index of the performance of a business process.

KRI

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KRI
Definition
Key Risk Indicator - a risk indicator that measures the probability or foreseeable (and unforeseeable) impacts of the risk, by means of a quantitative approach (“what if” and scenario analysis or probabilistic approaches).

LCOE

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LCOE
Definition
Levelized Cost of Energy - the LCOE is an indicator of the competitiveness of different electricity generation technologies, diversified by type of energy source and average plant life. It provides an economic estimate of the average cost of financing and maintaining a power plant over its useful life, in relation to the total amount of energy generated over the same time period. The Levelized Cost of Energy is therefore a benchmark value for setting the per-unit price at which the generated energy must be sold, in order to achieve an adequate economic return on the costs of financing and maintaining the plant throughout its life cycle.

LME

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LME
Definition
London Metal Exchange - the world’s largest metal exchange, based in London. The average maturity of the futures traded on a daily basis is 3 months, although longer-term contracts and spot contracts are also established. It is currently seen as the global benchmark in the metals market.

LNG

Word
LNG
Definition
Liquefied Natural Gas - LNG is obtained by cooling and then condensing natural gas (NG), after first purifying and dehydrating it. It should not be confused with GTL, the acronym for Gas to Liquid, which refers to processes for obtaining liquid hydrocarbons from NG. The resulting product is an odorless, transparent liquid consisting mainly of methane, mixed with smaller quantities of ethane, propane, butane and nitrogen, with a boiling point of approximately -160°C at atmospheric pressure.

MAR

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MAR
Definition
Market Abuse Regulation - EU Regulation no. 596/2014 on market abuse.

MBO

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MBO
Definition
Management By Objectives - a method for evaluating personnel on the basis of the results they achieve in relation to the targets set.

MFF

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MFF
Definition
Multiannual Financial Framework - a seven-year reference framework governing the EU’s annual budget. It is established by a unanimously adopted European Council Regulation with the approval of the European Parliament. The financial framework establishes the maximum amount of expenditure from the EU budget each year for broad investment areas (known as "headings") and sets an overall annual ceiling for allocations and payments. The MFF for the period 2021-2027 has a budget of 1,074.3 billion euros to address the EU’s long-term priorities. It complements the Next Generation EU recovery package (NGEU), worth 750 billion euros in grants and loans for the period 2021-2024, to address the socio-economic challenge posed by the COVID-19 pandemic. A total of 30% of overall MFF and NGEU expenditure is earmarked for climate-related initiatives.

Management and Corporate Governance

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Management and Corporate Governance
Definition
Rules constitute an essential instrument to ensure an efficient and successful management and a reliable control tool of the activities carried out by the company, aiming at the creation of value for shareholders.

Mark-to-Market

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Mark-to-Market
Definition
A method used for measuring items in forward contracts at current market prices.

MiFID II

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MiFID II
Definition
Markets in Financial Instruments Directive - EU Directive no. 2014/65 on financial instruments markets.

NBP

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NBP
Definition
National Balancing Point - a virtual market for trading natural gas in the UK.

NCC

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NCC
Definition
Net Connect Gas - a virtual market for trading natural gas in Germany.

NES

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NES
Definition
National Energy Strategy - Italian legislation establishes various planning/guidance tools relating to energy, which are also aligned with European directives and regulations. Art. 7 of decree-law 112/2008, converted by law 133/2008 (Chamber Act 1386), assigned the Government the task of establishing a “National Energy Strategy” (NES) as a general framework to help guide and plan national energy policy, to be issued following a National Energy and Environment Conference. The aim was to set out short- and long-term priorities aimed at using market mechanisms and other levers to achieve the goals of diversifying energy sources and procurement areas, upgrading infrastructure, promoting renewable sources and energy efficiency, building nuclear power plants in Italy and enhancing research in the field of energy and environmentally sustainable energy generation and use. The strategy was last updated in 2017 with a view to attracting additional total investments of 175 billion euros by 2030, including 30 billion for gas and electricity grids and infrastructure; 35 billion for renewable sources.

NYMEX

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NYMEX
Definition
New York Mercantile Exchange - the world’s leading market for futures and options on energy products, such as oil and natural gas; precious metals, such as silver, gold, palladium and platinum; and industrial metals, such as aluminum and copper.

Net-Zero

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Net-Zero
Definition
Net-Zero involves reducing greenhouse gas emissions in line with the latest climate science and the 1.5°C trajectory, with the remaining emissions offset by carbon removal credits. .

OECD

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OECD
Definition
Organization for Economic Co-operation and Development - an international organization whose purpose is to conduct economic studies for its member states, all of which are developed countries with market economies. The organization acts primarily as a consultative assembly that provides the opportunity to exchange political experiences, with a view to solving shared problems, identifying commercial practices and coordinating the local and international policies of its member states. It is based in Paris.

Offsetting emissions

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Offsetting emissions
Definition
The process of removing GHG emissions by means of compensatory instruments (CCS, forestation) or by purchasing “certificates” (emission allowances) on the ETS or voluntary markets.

Opex

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Opex
Definition
OPerating EXpense - the cost of managing a product, business, or system, also known as operating costs.

Ordinary gross operating margin

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Ordinary gross operating margin
Definition
This is the “gross operating margin” minus all items relating to extraordinary transactions such as company acquisitions or disposals (e.g. capital gains and losses).

Ordinary operating income

Word
Ordinary operating income
Definition
This is “Operating income” minus the effects of extraordinary transactions, such as company acquisitions or disposals (e.g. capital gains and losses), as well as any significant impairment losses recognized on assets as a result of impairment tests or classification as “Assets held for sale”.

PEC

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PEC
Definition
Primary Energy Consumption - gross domestic energy consumption, excluding all non-energy uses of energy carriers (e.g. natural gas used to produce chemicals, rather than for combustion). This parameter is an important instrument for measuring actual energy consumption and comparing it with Europe 2020 targets. The “percentage saved” is calculated using these 2005 values and its forecast for the 2020 targets set out in Directive 2012/27/EU; the Europe 2020 target is achieved when this value reaches 20%.

PEN

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PEN
Definition
Peruvian sol.

PHEV