Having achieved a percentage of renewable installed capacity of 63.1% of total installed capacity as of 2022, Enel has reached the target set in all those financial instruments in which the interest rate, or other financial or structural terms of the transaction, are linked to the achievement of a percentage of renewable installed capacity of 60% or more. Particularly noteworthy is the achievement of the targets set by the first sustainability-linked bonds issued by Enel Finance International NV (EFI) in 2020 in Pound Sterling. The trend of the five above-mentioned KPI, at the relative date of reference, will be verified by an external verifier. Furthermore, Enel will report every year on its performance regarding the five KPI, as appropriate, in its Annual Financial Statements and/or Sustainability Report – Non-Financial Statement and/or on its website.
In 2022 the Group, through its financial subsidiaries, EFI and, for the first time EFA (Enel Finance America, LLC), issued approximately 12 billion euros in sustainability-linked bonds in various markets and currencies.
For this reason, it is worth recalling that in June 2022 EFI launched a multi-tranche bond emission on the market in US dollars and linked one of the trances to the Group’s goal of reaching zero emissions of “Scope 1 GHG emissions intensity relating to power generation (gCO2eq/kWh)” by 2040. This was the first time ever for an energy multinational.
In May 2022, Enel and EFI increased the amount of the current Sustainability-Linked Revolving Credit Facility from 10 billion euros to 13,5 billion euros, the world’s largest sustainable credit line linked to SDG 13.
With regard to commercial papers, in April 2022 EFI renewed and increased its commercial paper program from 6 to 8 billion euros, which is linked to KPI “Scope 1 GHG emissions intensity relating to power generation (gCO2eq/ kWh)” of less than or equal to 148 gCO2eq/kWh by 2023 and less than or equal to 140 gCO2eq/kWh by 2024.
Furthermore, Enel has signed agreements with different financial counterparties for derivative instruments and sustainable guarantees, both linked to the Group’s ability to reach its sustainability goals over the next years.
In February 2023, EFI launched a sustainability-linked bond in two tranches for a total of 1,5 billion euros: the new issue combined for the first time world-wide a KPI linked to the taxonomy of EU with a KPI linked to the United Nations sustainable development goals (“SDG”), also providing for goals of complete decarbonization.
In the field of public finance, the Group supports the economic recovery plan and aims to become a strategic partner for the adoption of the Green Deal and the Recovery Plan at both the national and European level. The objective is to drive a sustainable, rapid and effective recovery, through a wide pipeline of construction projects focused on decarbonization, electricity grids and electrification, allowing the green and digital transition of the European economy to be accelerated, with a significant impact in terms of GDP, employment and reduction of CO2 emissions and in full alignment with the European Taxonomy. To this end, the Group has identified potential investments of approximately 4,3 billion euros for the period 2023-2030, with a direct impact on the Group through the ownership and the stewardship model. These initiatives are focused on green hydrogen, renewables and storage, revitalization of the photovoltaic manufacturing industry, smart grids, network resilience and charging infrastructure for electric mobility. The Group has also promoted partnerships with both public and private entities, with a view to achieving the decarbonization and electrification of consumption through the spread of electric bus fleets, the transition towards green ports and the promotion of energy efficiency in public buildings.
Furthermore, in the context of subsidized loans from international and national financial institutions, the Group is leading an innovation process intended to accelerate the mobilization of capital to support sustainable growth, through the use of sustainability-linked financial instruments.
More specifically, in 2022 the Group signed subsidized loans for a total of 1,8 billion euros, which, as in the case of private financing, provide for the inclusion of sustainability-linked mechanisms linked to SDG 13. Among the main operations, a special mention must be made of the sustainability-linked borrowings for a total of 800 million dollars by EFA, a Group company, and EKF (Danish export-credit agency), the first sustainability-linked borrowings agreement for the latter.
In the coming years, Enel will continue to make use of sustainable finance tools, with the aim of achieving a sustainable debt share of the Group’s total debt of approximately 70% by 2025.