The materiality analysis process has evolved and the traditional view is now complemented with that of double materiality, in which financial materiality and impact materiality each represent an equally important perspective. Through the involvement of the Group’s key stakeholders and internal and external experts, the process seeks to analyze the most significant impacts in order to identify material topics, taking into account – especially for negative impacts – the due diligence process and the relative results.
Enel has therefore identified the impacts based on the following activities:
- analysis of the main ESG megatrends: a survey of external (national and international) stakeholders and experts, with the aim of assessing the impacts of the main ESG megatrends through an analysis of the context in which we operate. (please refer to the section “The sustainability context”);
- assignment of priority to the topics by external stakeholders: more than 460 engagement initiatives involving the Group’s main external stakeholders (for example, through surveys, focus groups, desk analysis, etc.), in order to assess the priority, satisfaction and impact of ESG topics (please refer to the section “Assessing priorities and satisfaction of topics assigned by stakeholders”);
- definition of the impacts list: direct involvement of internal stakeholders and experts in defining and weighting the list of impacts generated and suffered on the basis of their feedback, also taking into account the views of external stakeholders. The impacts list has therefore been subject to thorough analysis and review by experts who internally oversee business activities, giving rise to positive and negative impacts that affect or may affect the relationship with the Group’s relevant stakeholders.
Once the impacts have been identified, Enel proceeds with their analysis, that is with the assessment of the respective significance, both on a material level of the impact as well as financial materiality level, through the involvement of the Group’s internal stakeholders and experts who, in performing their business activities, have a greater relationship with the main stakeholders and so have a complete view of the actual and/or potential impacts in the external context in which Enel operates.
As regards the impact materiality, in 2022, Enel strengthened the methodology for analyzing the impacts generated by the Company to bring it into line with the provisions of GRI 2021. Following the pilot project launched in 2019 and its completion in 2020 and 2021, with the involvement of all the countries participating in the process, in 2022 the Group conducted an impact materiality analysis which, through the involvement of the relevant stakeholders and experts and based on the best practices dictated by the due diligence process, identified the impacts generated by the Company on the economy, the environment and people, considering any violations of human rights as among the negative impacts and the contribution to sustainable development among the positive impacts. The impact analysis was carried out by each local Sustainability and Holding unit in order to assess the significance of the impacts, a process involving the Group’s internal experts and stakeholders who, in performing their business activities, have a close relationship with the main stakeholders and so have a complete view of the actual and/or potential impacts in the external context in which Enel operates. This analysis took into account the internal company context, including upstream and downstream activities in its value chain, the main stakeholders, and the best practices dictated by the due diligence process, and assessed the (actual and potential) positive and negative impacts generated by the Company. Negative impacts were analyzed according to their significance based on the degree of severity(2) and likelihood, in the case of potential impacts. Positive impacts were analyzed according to their significance(3) and based on their scope and direct and indirect contribution to the SDGs, in line with the commitment made by the Group, and with respect to the management instruments put in place to monitor the objectives set. On the basis of the impact materiality assessment, for reporting purposes the most significant positive and negative impacts generated (actual and/or potential) were selected according to their highest degree of significance for each material topic (1st Level). The table below shows:
- the most significant impacts – associated with ESG megatrends, the material topic (1st, 2nd, 3rd Level) and related GRI – both positive and negative in suffered directly and indirectly by the Company from the external context;
- type: whether actual or potential;
- the time horizon for their occurrence (short-, mediumor long-term);
- impact management: the Company strategies and performance, in line with the management of the main types of risk faced by the Enel Group;
- additional information: whether the reported impact is or could be a human rights concern; the reference SDGs; the phase of the value chain affected by the impact; the stakeholders that can or could be positively or negatively affected by the impact; whether the topic related to the reported impact is a priority for the stakeholders involved in the materiality analysis process; reference to the Sustainability Plan and to the chapter of the Report that describes in detail the management methods and results related to the impact.