The Integrated Annual Report and materiality analysis

As an expression of integrated thinking, the Integrated Annual Report seeks to represent the capacity of the business model to create value for stakeholders in the short, medium and long term, ensuring the connectivity of the information it contains.
The Group maintains ongoing relationships with all stakeholders in order to understand and meet their reporting needs, taking account of the importance of the impact of the Group’s business model for all interests involved, with a view to creating shared value.
The financial and non-financial information presented within the various documents of the corporate reporting system are selected based on their materiality determined on the basis of specific frameworks, methodologies and assessments.
The following represent the key principles underpinning the preparation of the Report on Operations, with the basis of preparation of the consolidated financial statements being discussed in the section “Form and content of the financial statements”.
The Report on Operations includes financial and non-financial information selected on the basis of a materiality analysis performed in accordance with the requirements set out in Practice Statement 2 “Making Materiality Judgments”, issued by the International Accounting Standards Board (IASB), with specific consideration of the United Nations Sustainable Development Goals (SDGs) (i.e. Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11) and Climate Action (SDG 13)) and on the activities implemented to contribute to their achievement in order to meet the expectations of the main stakeholders in the Integrated Annual Report.
The Enel Group also performs the materiality analysis in accordance with the Sustainability Report.
As part of the analysis, the main stakeholders of the Group are identified and assessed on the basis of their relevance to the Group. They may prioritize business and governance issues, social issues and environmental issues. The priorities thus defined by the stakeholders are then compared against those of the Group and the business strategy. This joint view of the two perspectives makes it possible to identify the issues of greatest importance both for the Group and for the stakeholders (material issues), and to verify the “alignment” or “misalignment” between external expectations and internal importance. The result of this analysis is represented in the Group’s priority matrix (or materiality matrix), which, in giving a comprehensive view of all stakeholders, provides complete sustainability disclosure that incorporates the positive and negative impacts on society, the environment and the economy, and therefore the Group’s contribution to sustainable development, as illustrated in the Sustainability Report.
For the purposes of the Integrated Annual Report, the issues that have a direct impact on the creation of entrepreneurial value were identified, applying a filter to so-called primary users, i.e. the “financial community” stakeholders.(1) The analysis identified the following three priority issues:

In addition to the concept of materiality, the qualitative and quantitative financial and non-financial information reported in the Report on Operations have been prepared and presented in such a way as to ensure their completeness, accuracy, neutrality and comprehensibility.
The information contained in the Report on Operations is also consistent with the previous year, unless otherwise indicated.
Accordingly, the Group applies the same methodologies from year to year, unless otherwise specified, in compliance with international best practices for integrated reporting and non-financial reporting.
For the purposes of preparing non-financial information, especially quantitative information, the Group mainly applies the provisions of the Global Reporting Initiative (GRI) Standard, in line with the Sustainability Report, and the “Aspects” of the GRI supplement dedicated to the Electric Utilities sector (“Electric Utilities Sector Disclosures”). Consideration was also given to the indicators proposed in the white paper “Towards Common Metrics and Consistent Reporting of Sustainable Value Creation” of the World Economic Forum (WEF) and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the details of which are highlighted in the section below on the WEF and in the “Performance & Metrics” chapter of this document.
Taking account of the results of the priority matrix and the significant climate impacts on the Group’s value creation process, each section (entitled after the four pillars of the TCFD: Governance, Strategy & Risks, Performance & Metrics and Outlook) includes information relating to climate change as proposed by the TCFD, which published specific recommendations in June 2017 and were adopted by the Group in its voluntary reporting on the financial impacts of climate risks.
The Group also took account of the recommendations issued by the IASB in November 2019 “IFRS Standards and climate-related disclosures” and November 2020 “Effects of climate-related matters on financial statements “, which emphasize that this risk must be considered in the assumptions of management in the exercise of its judgment in measuring items in the financial statements.

In order to ensure the connectivity of information and to communicate the way in which the progress achieved in sustainability contributes to enhancing current and future financial performance, clear and consistent relationships between key financial and non-financial information have been identified and presented in the Report on Operations for each of the four sections indicated above.
For the purposes of greater and easier access to information, the Integrated Annual Report has also been published in the “Investors” section of the Enel website ( in a navigable format with specific hyperlinks.

(1) Includes financial institutions and their governance bodies, investors, rating agencies and financial analysts.