Values and pillars of corporate ethics

Policy and uman right

A robust system of ethics underlies all activities of the Enel Group. This system is embodied in a dynamic set of rules constantly oriented towards incorporating national and international best practices that everyone who works for and with Enel must respect and apply in their daily activities. The system is based on specific compliance programs, including: the Code of Ethics, the Compliance Model under Legislative Decree 231/2001, the Enel Global Compliance Program, the Zero-Tolerance-of-Corruption Plan, the Human Rights Policy and any other national compliance models adopted by Group companies in accordance with local laws and regulations.

Code of Ethics

In 2002, Enel adopted a Code of Ethics, which expresses the Company’s ethical responsibilities and commitments in conducting business, governing and standardizing corporate conduct on the basis of standards aimed to ensure the maximum transparency and fairness with all stakeholders.
The Code of Ethics is valid in Italy and abroad, taking due account of the cultural, social and economic diversity of the various countries in which the Group operates. Enel also requires that all associates and other investees and its main suppliers and partners adopt conduct that is in line with the general principles set out in the Code. Any violations or suspected violations of Enel Compliance Programs can be reported, including in anonymous form, through a single Group-level platform (the “Ethics Point”). In 2020, the Code was updated to reflect the main international measures concerning human rights and align the duties of the units responsible for updating the document with current organizational arrangements. In particular, the Code expresses our commitments and ethical responsibilities in the conduct of business, regulating and standardizing corporate conduct in accordance with standards based on maximum transparency and fairness towards all stakeholders. In February 2021, the Board of Directors approved a further update of the Code of Ethics in order to align its content with the current context, including the current corporate mission and the United Nations Sustainable Development Goals, the current organizational structure and the system of procedures, as well as national and international best practices in the areas of diversity and privacy.
With regard to the Code of Ethics, the following table reports the average number of training hours per person, total reports of violations received and violations confirmed.

 

    2020 2019 Change
Average number of hours of training per person no. 38.6 42.3 (3.7)
Total reported violations of the Code of Ethics received no. 151 166 (15)
Confirmed violations of the Code of Ethics (1) no. 26 38 (12)
- of which violations involving conflicts of interest/bribery no. 2 10 (8)

(1) The analysis of reports received in 2019 was completed in 2020. For that reason, the number of verified violations for 2019 was restated from 36 to 38. The two additional violations are attributable to minor cases of private conflicts of interest in Brazil.

Compliance Model (Legislative Decree 231/2001)

Legislative Decree 231 of June 8, 2001 introduced into Italian law a system of administrative (and de facto criminal) liability for companies for certain types of offenses committed by their directors, managers or employees on behalf of or to the benefit of the company. Enel was the first organization in Italy to adopt, back in 2002, this sort of compliance model that met the requirements of Legislative Decree 231/2001 (also known as “Model 231”). It has been constantly updated to reflect developments in the applicable regulatory framework and current organizational arrangements.

Enel Global Compliance Program (EGCP)

The Enel Global Compliance Program for the Group’s foreign companies was approved by Enel in September 2016. It is a governance mechanism aimed at strengthening the Group’s ethical and professional commitment to preventing the commission of crimes abroad that could result in criminal liability for the company and do harm to our reputation. Identification of the types of crime covered by the Enel Global Compliance Program – which encompasses standards of conduct and areas to be monitored for preventive purposes – is based on illicit conduct that is generally considered such in most countries, such as corruption, crimes against the government, false accounting, money laundering, violations of regulations governing safety in the workplace, environmental crimes, etc.

Zero-Tolerance-of-Corruption Plan and the anti-bribery management system

In compliance with the tenth principle of the Global Compact, according to which “businesses should work against corruption in all its forms, including extortion and bribery”, Enel is committed to combating corruption. For this reason, in 2006 we adopted the “Zero-Tolerance-of-Corruption Plan” (ZTC Plan), confirming the Group’s commitment, as described in both the Code of Ethics and the Model 231, to ensure propriety and transparency in conducting company business and operations and to safeguard our image and positioning, the work of our employees, the expectations of shareholders and all of the Group’s stakeholders. Following receipt of the ISO 37001 anti-corruption certification by Enel SpA in 2017, the 37001 certification plan has gradually been extended to the main Italian and international subsidiaries of the Group.

    2020 2019 Change
Training in anti-corruption policies and procedures no. 26,660 19,798 6,862 34.7%
  % 40.0 29.0 11.0 37.9%
Training in anti-corruption policies and procedures by geographical area          
Italy % 47.7 35.3 12.4 35.1%
Iberia % 20.2 33.9 -13.7 -40.4%
Latin America % 26.8 18.1 8.7 48.1%
Europe % 80.7 24.4 56.3 -
Africa, Asia and Oceania % 28.4 6.8 21.6 -
North America % 56.7 43.5 13.2 30.3%

Human Rights Policy

In order to give effect to the United Nations Guiding Principles on Business and Human Rights, in 2013 the Enel SpA Board of Directors approved the Human Rights Policy, which was subsequently approved by all the subsidiaries of the Group. This policy sets out the commitments and responsibilities in respect of human rights on the part of the employees of Enel SpA and its subsidiaries, whether they be directors or employees in any manner of those companies. Similarly, with this formal commitment, Enel explicitly becomes a promoter of the observance of such rights on the part of contractors, suppliers and business partners as part of its business relationships.

Enel conducts specific human rights due diligence for the entire value chain in the various countries in which it operates. The process was developed in accordance with the main international standards such as the United Nations Guiding Principles on Business and Human Rights, the OECD guidelines and international best practices. During the due diligence process, opportunities for improvement were identified and incorporated in specific action plans for each country in which we operate, as well as an improvement plan to be managed centrally in order to harmonize and integrate processes and policies developed globally and applied locally. In total, around 170 actions have been planned, covering 100% of the operations and sites.

With regard to the sustainability of the supply chain, Enel evaluates suppliers’ human rights performance, regardless of the level of risk, through a dedicated questionnaire in which the characteristics of potential suppliers are analyzed with regard to inclusion and diversity, protection of workers’ privacy, verification of their supply chain, forced or child labor, freedom of association and collective bargaining, and application of fair working conditions (including adequate wages and working hours). During 2020, the questionnaire was supplemented with additional questions in order to obtain a more accurate assessment of the potential supplier. Among other things, the Group requires its contractors/providers and subcontractors to respect and protect internationally recognized human rights and comply with ethical and social obligations regarding: the protection of children and women in the labor force, equal treatment, the prohibition of discrimination, freedom of trade unions and the right of association and representation, the prohibition of forced labor, the protection of health, safety and the environment, the safeguarding of health and hygiene conditions and compliance with regulatory, remuneration, contribution, insurance and tax requirements. Suppliers are also expressly asked to undertake to adopt and implement the principles of the Global Compact and to ensure that these are satisfied in the performance of all their activities, whether performed by their employees or subcontractors. In addition, suppliers must undertake to comply with the principles set out in Enel’s Code of Ethics, or in any case to be inspired by principles equivalent to those adopted by Enel in the management of their business. Finally, it is specified that the provisions of International Labor Organization conventions or applicable legislation in the country in which the activities must be carried out, if more restrictive, shall apply.
The contracts govern working conditions in their entirety and clearly state all the terms included in the contracts, detailing workers’ rights (working hours, wages, overtime, allowances and benefits). The terms are translated into the workers’ native language and are supported with information contained in documents agreed with employees. Human resource management systems and procedures ensure that minors are not present in the workforce. Internships and work experience projects are also implemented.