Energy transition is a true transformation process, one that effectively leads down a path of sustainable long-term development; it enables more inclusive and environment-friendly growth and helps find new solutions for customers’ requirements. New forms of energy that can shape a new business model, taking value from urbanization, electrification, digitalization and decarbonization trends.
In the new 2019-2021 Plan, which is based on industrial pillars and ESGs, the Group is confirming the fundamental principles of its strategy, with greater change and acceleration in its implementation.
The Plan promotes combining different cultures and objectives within the same Group, across mature businesses and upcoming activities, promoting the application of a sustainable business model along the entire value chain, in line with the 17 Sustainable Development Goals. Enel promotes the achievement of these goals, aligning its own strategy with the United Nations goals and measuring and managing its own direct contribution to achieving them.
Enel works every day to provide its customers with all energy they need to achieve their dreams and their ambitions. It does so in a sustainable way, so that the progress of each person is an invaluable part of the progress of the humanity as a whole.
Investments in development, equal to 16.5 billion euros in the three-year period, will mainly concern the development of renewable energies and network digitalization. Customer focus will also be consolidated at global level and Enel X activities for electric mobility and demand response will be stepped up.
In financial terms, the Plan estimates an increased dividend, a gross operating margin of 19.4 billion euros in 2021, against a profit that will go up to 5.6 billion euros.
Operationally speaking, in 2021 renewable installed capacity will be approximately 54 GW13 (SDG 7.2), thermal and nuclear capacity 39.5 GW and consequently 62% of production will be emission- free13. In line with commitments made in 2015, to achieve Sustainable Development Goals (SDG 13), the Plan has set an additional goal of reducing specific CO2 emissions by 2030 (0.23 kg/kWheq), in addition to the previous target for 2020 (< 0.35 kg/kWheq). This is in keeping with Enel’s strategy and its pledge to develop a business model aligned with the goals of the Paris Agreement (COP21), to keep the rise in the average global temperature to below 2 °C compared to pre-industrial levels and continue efforts to limit this temperature increase to 1.5 °C.
As regards the pillar dedicated to operational improvement for a better service, specific goals were introduced that will contribute to achieving SDG 9 (Industry, innovation and infrastructures) and 11 (Sustainable cities and communities): the Group expects to have some 47 million smart meters installed and 455,000 charging stations for electric mobility by 2021 and to invest 5.4 billion euros in digitalization in the 2019-2021 period.
Enel also continues to promote the economic and social growth of the local communities in which it operates, confirming and strengthening its specific commitment to the following SDGs:
- 2.5 million beneficiaries of quality education in the 2015-2030 period (SDG 4);
- 10 million beneficiaries of affordable and clean energy in the 2015-2030 period (SDG 7.1);
- 8 million beneficiaries in terms of decent work and sustained, inclusive and sustainable economic growth in the 2015-2030 period (SDG 8).
Considerable focus has been dedicated to the Company’s people, who are considered as key players in the strategy. This aims to strengthen their roles and responsibilities within the organization, providing them with the tools for managing the energy transition through clear and precise objectives in terms of performance appraisals, company climate, development of digital skills – with the aim of involving 100% of people in dedicated training by 2020 – and promotion of diversity, with the intention of reaching a share of 50% women for the 2021 selection process. It is a method of working based on principles of ethics, transparency, inclusiveness, respect for human rights and maximum attention to safety.
Clear objectives are also linked to the promotion of a sustainable supply chain, an increasingly integrated and modern governance structure and environmental management based on the reduction of emissions and consumption, the promotion of biodiversity and the spread of a circular economy approach that combines innovation and competitiveness. On an environmental level, targets to reduce specific SO2 and NOx emissions by 2030 (by -80% and -40% respectively compared to 2015 values) were relaunched, along with the objective to reduce dust (-90% compared to 2015).
Digitalization and customer focus are fundamentals. Through 5.4 billion euros invested over three years, Enel wants to digitalize assets, with particular focus on smart meters, remote control and system connectivity, implement an agile design for the main processes that affect customers and increase its people’s digital skills.
This will be a technological transformation with a focus that must include cyber security, an area in which the Group has confirmed its objectives of disseminating the most advanced solutions and relative monitoring (Ethical Hacking, Vulnerability Assessment, etc.), and of raising awareness of an IT security culture.
Enel therefore has the ambitious goal of steering the energy transition and the relative electrification of consumption, through a Plan that features all aspects of the energy of the future: efficiency, flexibility, digitalization, electric mobility and the integration of renewables, as well as the new role of customers – no longer just passive users, but conscious main players with growing needs.
For further details on the 2019-2021 Plan, see the section “Sustainable value created” and in particular the data overviews at the start of each chapter.
13 Includes managed capacity and the related production.