In line with the adopted methodology12, during 2018 the issues, classified into business and governance issues, social issues and environmental issues, were assessed according to the priority given by the stakeholders and the Company. The result of the materiality assessment is summarized in the materiality matrix, which contains the following information:
- on the horizontal axis the priority that stakeholders, appropriately weighted based on their materiality, attribute to the various issues;
- on the vertical axis the issues on which Enel plans to focus its efforts, with the associated degree of pri ority, also taking into consideration planned investments, commitments, potential consequences and issues included in the Group’s Strategic Plan.
The Group’s overall matrix takes into account the contributions of the main com panies involved in the process, based on their relevance and the type of business in which they operate. The joint view of the two perspectives makes it pos sible to identify the issues of greatest importance both for the Company and for the stakeholders (the priority issues), and to verify the degree of “alignment” or “misalignment” between external expectations and internal relevance of these issues.
The issues with the highest priority emerging from the materiality assessment, with the description of the rela tive motivation and the consequent im pact, are the following (please refer to the “Methodological note” for the com plete list of material issues):
- New technologies, services and digitalization Technological pro gresses, particularly related to digi talization and new technologies, are accelerating the transformation of many sectors. This context offers new business opportunities based on the development of energy solutions that promote sustainability and make it possible to diversify the proposal of products and services offered by the Group to its customers, influencing both traditional business and the development of new models. For this reason, innovation (of product, service or process) is a strategic priority that becomes a fundamental tool for guaranteeing business success, based on an increasingly competitive and demanding environment. Enel, as a leading company in the energy sector, intends to actively position itself in this new context, investing in innovation and in the development of new products and services and promoting the application of new technologies in the field of energy efficiency, electric mobility, storage and other sustainable energy solutions. As a result, the Group has included in its 20192021 Sustainability Plan specific actions that promote growth and development in this direction.
- Economic and financial value crea tion The creation of economic and financial value is essential to ensure the survival of the Group over time and, therefore, its sustainability: a company that creates economic and financial value has a greater chance of seizing opportunities and facing the challenges that arise. For this reason, the Company’s financial performance is among the most rel evant issues, based on internal and external analyzes. It is increasingly evident that the Group must focus on a sustainable business model that integrates the management of financial and non financial risks, taking the best opportunities arising from the energy transition.
- Decarbonization of the energy mix The fight against climate change is currently one of the main challenges companies have to face. In particular in the utility sector, this has caused the development of public and regulatory policies that intend to promote a low carbon global economy, in which the electrification of energy demand has a fundamental role. In addition, institutional investors pay in creasing attention to the Company’s climate change management and results. Consequently, Enel, aware of its role as a leader in the energy transition and in its ability to contribute to the achievement of a lowcarbon economy, places among its priorities the progressive reduction of green house gas (GHG) emissions, through the increasing impulse of renewable energies and optimization of the management of traditional technologies, elements that characterize this one as across issue between business and environmental aspects. The Group thus aims to achieve its public commitment to decarbonize the energy mix by 2050, respecting the intermediate targets defined in the Strategic Plan and in the 2019 2021 Sustainability Plan.
- Occupational health and safety Enel considers people’s health, safety and mental/physical integrity to be its most precious asset. The Group has always placed safety first and continues to consider it one of the main priorities. The optimal management of this issue also has a direct impact on the performance of the Company, as it allows to increase productivity and reduce labor costs. At the same time, it contributes greatly to generating loyalty and increasing the commitment of employees towards the Group and the work they do. Consequently, this issue represents a milestone in Enel’s sustainability and contributes to the Group’s operational excellence: at the heart of the health and safety strategy is every one’s constant commitment; integration of safety processes and training; reporting and analysis of accidents and near misses; the rigorous selection and management of contractors; continuous quality checks; sharing experiences across the Group and benchmarking with the best international players.
- Sound governance and fair corpo rate conduct In recent years, practices regarding the ethical conduct of listed companies have become the object of growing interest from markets and regulatory bodies. The performance of the Group is bound, among other factors, to strict compliance with laws and ethical principles: Enel has established a set of rules, models and control mechanisms through which it binds its employees to act according to principles of integrity, both internally and in the field of external relations. As a result, this transparent model of conduct allows Enel to create trust in its stakeholders, an element that is also reflected in the economic results and that contributes to consolidating the Group’s leadership position.
2018 materiality matrix
12 For more information on the methodology used for the materiality analysis, please refer to the “Methodological note”.