Enel will also lead its customers towards a decarbonized electrification of their consumption. Firstly, by increasing the share of renewable electricity consumption, Enel customers will reduce their indirect (Scope 2 emission); secondly, by expanding the portfolio of products and services to accelerate the electrification of other sectors, such as transport and construction, while promoting energy efficiency solutions, customers will also reduce their direct (Scope 1 emissions).
Through its business strategy, the Group is committed to establish drivers, actions and investments required to complete the decarbonization and electrification roadmap, and identifying, assessing and managing the main climate risks and business opportunities emerging from the energy transition. Particular attention is placed on the climate change adaptation policies to increase the resilience of the assets along the entire value chain, thereby limiting potentially negative impact and guaranteeing a safe and sustainable energy service in all the countries in which the Group operates.
Enel is committed to carry out its direct and indirect public advocacy action in line with the Paris Agreement and its objective of limiting global warming within 1.5 °C through the engagement of institutional stakeholders, trade associations, non-governmental organizations and academics. Enel promotes its point of view on public policies in the fight against climate change and on the pathways of decarbonization and electrification.
In addition, Enel is fully aware of the intrinsic link between climate change and nature loss. Rising temperatures, changes in precipitation patterns and extreme weather events impact significantly on ecosystems, forests and biodiversity. The decline of nature also affects the resilience of ecosystems to climate change, and the ability to capture carbon and generate benefits for society. Therefore, Enel’s business model aims to synergistically address climate change and promote the protection and conservation of nature, as an essential factor in its corporate strategy and everyday operations.
Similarly, there is a strong link between climate change and the social dimension. An active role in the fight against climate change focusing on people requires of decarbonization strategies that stimulate social inclusion, and at the same time favors decent work, the pillars of which – according to the International Labour Organization – are full productive employment, the guarantee of rights at work, the expansion of social protection, and the development of social dialogue. As such, Enel fully supports the principles of a just transition, so that no one is left behind even in the short term, and recognizes the relevance for its business of the social impacts arising from its climate strategy, aimed at the progressive reduction of emissions in line with the Paris Agreement.
In addition, as a result of a solid corporate governance system that defines roles and responsibilities, Enel’s Board of Directors and Management oversee the main decisions regarding climate.
In order to guarantee increased transparency in its communications and relationships with its stakeholders, the Group periodically reports on its related activities around climate change in line with the international standards of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) and is publicly committed to adopting the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board. The guidance from the “Enhancement and Standardization of Climate-Related Disclosures” of the SEC (Securities and Exchange Commission), the standards issued on the EFRAG website, and the ISSB’s recently published exposure draft are also taken into account. For details on the alignment of the structure of the chapter relating to the TCFD recommendations, please see the TCFD Content Index in the 2022 Sustainability Report.