People centricity

People management and development at Enel

The Enel Group workforce at December 31, 2020 numbered 66,717. The contraction in the Group workforce reflects the impact of the balance between new hires and terminations during the period (-565) and the change in the consolidation scope (a total of -971), which included the disposal of the Reftinskaya GRES plant in Russia, the disposal of hydro plants in the United States and the acquisition of Viva Labs.

In the tables below, the number and variation in employees by gender, age group, job classification and geographical area are analyzed. An analysis by Business Line is also provided for the number of employees only.

YEAR-END WORKFORCE

    2020 2019 Change
Employees by gender: no. 66,717 68,253 (1,536) -2.3%
- of which men no. 52,346 53,933 (1,587) -2.9%
  % 78.5 79.0 -0.5 -0.6%
- of which women no. 14,371 14,320 51 0.4%
  % 21.5 21.0 0.5 2.4%
Employees by age group: no. 66,717 68,253 (1,536) -2.3%
- <30 no. 7,289 7,899 (610) -7.7%
  % 10.9 11.6 -0.7 -6.0%
- 30-50 no. 36,355 37,121 (766) -2.1%
  % 54.5 54.4 0.1 0.2%
- >50 no. 23,073 23,233 (160) -0.7%
  % 34.6 34.0 0.6 1.8%
Employees by level: no. 66,717 68,253 (1,536) -2.3%
- senior manager % 2.1 2.0 0.1 5.0%
- middle manager % 17.4 16.6 0.8 4.8%
- office staff % 53.8 53.1 0.7 1.3%
- blue collar % 26.7 28.3 -1.6 -5.7%
Employees by geographical area no. 66,717 68,253 (1,536) -2.3%
Italy no. 29,800 29,767 33 0.1%
  % 44.7 43.6 1.1 2.5%
Iberia no. 9,781 10,123 (342) -3.4%
  % 14.7 14.8 -0.1 -0.7%
Latin America no. 19,838 20,240 (402) -2.0%
  % 29.7 29.7 - -
Europe no. 4,966 5,907 (941) -15.9%
  % 7.4 8.7 -1.3 -14.9%
North America no. 1,639 1,639 - -
  % 2.5 2.4 0.1 4.2%
Africa, Asia and Oceania no. 693 577 116 20.1%
  % 1.0 0.8 0.2 25.0%

 

WORKFORCE BY BUSINESS LINE

No.  
  at Dec. 31, 2020 at Dec. 31, 2019
Thermal Generation and Trading 8,142 9,432
Enel Green Power 8,298 7,957
Infrastructure and Networks 34,332 34,822
End-user Markets 6,324 6,336
Enel X 2,989 2,808
Services 5,731 6,013
Other 901 885
Total 66,717 68,253

CHANGE IN WORKFORCE

Balance at December 31, 2019 68,253
Hirings 3,131
Terminations (3,696)
Change in consolidation scope (971)
Balance at December 31, 2020 66,717

 

BREAKDOWN OF CHANGES IN WORKFORCE

    2020 2019 Change
Hiring rate % 4.7 5.5 -0.8 -14.5%
New hires by gender: no. 3,131 3,726 (595) -16.0%
- of which men no. 2,203 2,702 (499) -18.5%
  % 70.4 72.5 -2.1 -2.9%
- of which women no. 928 1.024 (96) -9.4%
  % 29.6 27.5 2.1 7.6%
New hires by age group: no. 3,131 3,726 (595) -16.0%
- <30 no. 1,363 1,865 (502) -26.9%
  % 43.5 50.1 -6.6 -13.2%
- 30-50 no. 1,7 1,698 2 0.1%
  % 54.3 45.5 8.8 19.3%
- >50 no. 68 163 (95) -58.3%
  % 2.2 4.4 -2.2 -50.0%
New hires by geographical area no. 3,131 3,726 (595) -16.0%
Italy no. 1,044 1,042 2 0.2%
  % 33.3 28.0 5.3 18.9%
Iberia no. 257 430 (173) -40.2%
  % 8.2 11.5 -3.3 -28.7%
Latin America no. 991 1,098 (107) -9.7%
  % 31.7 29.4 2.3 7.8%
Europe  no. 280 528 (248) -47.0%
  % 8.9 14.2 -5.3 -37.3%
North America no. 362 435 (73) -16.8%
  % 11.6 11.7 -0.1 -0.9%
Africa, Asia and Oceania no. 197 193 4 2.1%
  % 6.3 5.2 1.1 21.2%
Turnover rate % 6.0 7.1 (1.1) -15.5%
Terminations by gender: no. 3,696 4,82 (1,124) -23.3%
- of which men no. 3,001 3,766 (765) -20.3%
  % 81.2 78.1 3.1 4.0%
- of which women no. 695 1,054 (359) -34.1%
  % 18.8 21.9 -3.1 -14.2%
Terminations by age group: no. 3,696 4,82 (1,124) -23.3%
- <30 no. 547 626 (79) -12.6%
  % 14.8 13.0 1.8 13.8%
- 30-50 no. 1,273 1,867 (594) -31.8%
  % 34.4 38.7 -4.3 -11.1%
- >50 no. 1,876 2,327 (451) -19.4%
  % 50.8 48.3 2.5 5.2%
Terminations by geographical area: no. 3,696 4,820 (1,124) -23.3%
Italy no. 1,011 1,607 (596) -37.1%
  % 27.3 33.3 -6.0 -18.0%
Iberia no. 599 254 345 -
  % 16.2 5.3 10.9 -
Latin America no. 1,393 2,103 (710) -33.8%
  % 37.7 43.6 -5.9 -13.5%
Europe  no. 299 369 (70) -19.0%
  % 8.1 7.7 0.4 5.2%
North America no. 313 392 (79) -20.2%
  % 8.5 8.1 0.4 4.9%
Africa, Asia and Oceania no. 81 95 (14) -14.7%
  % 2.2 2.0 0.2 10.0%

Training and development

In response to the COVID-19 emergency, Enel promptly intervened with appropriate measures to ensure the safety of personnel and at the same time activating flexible working approaches for over 37,000 people in the countries in which the Group is present. This global-scale response was made possible by the flexible working experience gained in Italy since as early as 2016 and then gradually extended throughout the Group and by the technological transformation launched in 2014, which led to the integration of digitalization into corporate strategy, making Enel the first utility company to fully operate in the cloud.
The adoption of flexible working has also meant giving people the tools they need to work from home, ensuring the circulation of information and the effective organization of activities. Initiatives were also launched to support the transition to the new digital reality, promote a work culture based on autonomy, delegation and trust, and encourage better time management by supporting the well-being of people and their families.
Growing automation and technological evolution open up new scenarios for the Group and its people and are driving the need for new technical and professional expertise and the simultaneous waning of other skills. In this context, the targeted reskilling and upskilling programs have therefore been strengthened, the former to learn skills and expertise that enable people to fill new positions and roles, while the latter involve the development of training and empowerment courses that enable employees to improve their performance in their job, increasing the skills available to them in their current position. In particular, Enel signed an agreement with the trade unions in December 2020 for the implementation of an upskilling and reskilling training plan in Italy, which includes over 40 training courses and the involvement of more than 20,000 people. The planned initiatives range from digital transformation for operational and commercial personnel, to job shadowing projects as an innovative learning method, passing through reskilling activities involving technical-professional and cultural skills.
External skilling initiatives were also undertaken, from the perspective of stewardship – responsible management of relations with Enel’s external stakeholders – which provide for the accompaniment and growth of people outside the Company (institutions, external entities, suppliers) for the acquisition of new skills. These include initiatives aimed at female students in the last two years of high school in order to promote a culture of STEM studies.

Enel promotes training activities for its people as a key element in ensuring their constant development. We have developed career paths to foster the evolution of our talent, the valorization of passions and personal aptitude and the development of new languages, also promoting the formation of internal trainers (“train the trainer”). In 2020, more than 2.7 million hours of training were provided, a slight increase compared with the previous year despite the fact that almost all training was delivered remotely due to the COVID-19 pandemic. This was made possible by the upgrading of digital tools and the E-Ducation platform, which ensured broad access to content and expanded the culture of digitalization for learning. The training courses covered issues related to conduct, technical issues, safety, new skills and digital culture.
Total Group training costs in 2020 amounted to more than €18 million.(1)

AVERAGE TRAINING HOURS PER EMPLOYEE

    2020 2019 Change
Average number of training hours hrs/person 40.9 38.8 2.1 5.4%
Average number of training hours by level:          
- manager hrs/person 31.9 58.4 (26.5) -45.4%
- middle manager hrs/person 41.4 44.9 (3.5) -7.8%
- office staff hrs/person 35.7 29.6 6.1 20.6%
- blue collar hrs/person 51.4 49.6 1.8 3.6%
Average number of training hours by gender:          
- men hrs/person 40.4 39.7 0.7 1.8%
- women hrs/person 42.7 35.0 7.7 22.0%


In a rapidly changing work environment, accelerated by the pandemic crisis, the Group has set itself the ambitious goal of promoting digital sustainability in the coming years through a series of training initiatives that illustrate all those technologies that enable our people to work and coexist sustainably with the surrounding environment.
With regard to personal development activities, the quantitative and qualitative Performance Assessment process in 2020 involved the various levels of Group personnel in a fluid process. More specifically, 100% of eligible employees were involved in the 2019 Performance Evaluation Campaign, which was completed in July 2020. A review of the process has been planned for the upcoming 2020 Campaign – to be conducted between the 2020 and 2021 calendar years – that will enhance the specific features of individuals and leverage people’s talents and inclinations.

Listening and improvement of organizational well-being

In light of the digitalization of relations as a result of the COVID-19 pandemic, the Listening Channel has undergone a review. Accordingly, in 2020 a project was launched to make direct involvement approaches more constant and dynamic, for the definition of action plans aimed at improving organizational well-being. The Open Listening survey was also launched. This interview is intended to help build our future, with 70% of personnel responding. People were asked to imagine the future of work in the “new normal” era: from ways of working remotely to workspaces, new technologies, psychological and physical well-being and new models for the leadership of the future. Of total respondents, 93.5% declared a high level of involvement (People Engagement rate). In the course of 2021, global and specific action plans will be prepared for the various targets populations identified.

Diversity and inclusion

Enel’s commitment to promoting diversity and inclusion is a process that started in 2013 with the adoption of our policy on human rights, followed in 2015 by our global diversity and inclusion policy, published in conjunction with Enel’s adoption of the Women’s Empowerment Principles (WEP) promoted by the UN Global Compact and UN Women and in line with the United Nations Sustainable Development Goals. In 2019, the global workplace harassment policy was published. It sets out the principle of respect for integrity and dignity of the individual in the workplace and addresses the issue of sexual harassment and harassment connected with discrimination, the principles of which are delineated in the Statement against Harassment in the Workplace.
Enel’s approach is based on the fundamental principles, enunciated in the diversity and inclusion policy, of non-discrimination, equal opportunities and human dignity in all its forms, inclusion and promoting work-life balance. The application of this policy has enabled the development of global and local projects that focus on diversity in terms of gender, disability, age, nationality and disseminating the culture of inclusion at all levels of the organization.
The progress of D&I policies is monitored periodically through a global reporting process that measures the performance of a comprehensive set of KPIs on all dimensions for internal and external purposes. In particular, with regard to gender, Enel has set itself two public objectives: to ensure equal representation of the two genders in the initial stages of the selection processes (50% by 2021) and to increase the number of female managers and middle managers. In 2020, women represented 44% of people involved in the selection process, an increase on previous years (42% in 2019), while the number of female managers and middle managers increased by 6%.
The steady increase in female managers in recent years has been accompanied by a simultaneous increase in the Equal Remuneration Ratio(2) (ERR), which in 2020 was equal to 83.3%, a slight improvement on the 83.2% registered in 2019 (equal to 82.4% on a unchanged euro exchange rate basis). These results are evidence of the management actions taken to valorize the presence of women in top positions, the effects of which will be fully appreciable in the medium/long term, taking due account of generational dynamics.
The following table demonstrates Enel’s commitment to diversity and inclusion, showing the proportion of disabled personnel or personnel belonging to protected categories, the number of women in management positions and the ratio for basic salary and average remuneration between women and men.

DIVERSITY AND INCLUSION

    2020 2019 Change
Disabled personnel or personnel belonging the protected categories % 3.3 3.3 - -
           
Women in management positions(1) no. 3,825 3,602 223 6.2%
           
Ratio of base salary to remuneration          
Ratio base salary women/men: % 108.1 107.4 0.7 0.7%
- senior manager % 86.7 86.7 - -
- middle manager % 96.5 96.0 0.5 0.5%
- office staff % 90.2 90.0 0.2 0.2%
- blue collar % 77.0 68.6 8.4 12.2%
Ratio base remuneration women/men: % 108.3 107.6 0.7 0.7%
- senior manager % 83.3 83.2 0.1 0.1%
- middle manager % 95.7 95.2 0.5 0.5%
- office staff % 90.3 90.0 0.3 0.3%
- blue collar % 77.8 70.1 7.7 11.0%
(1) The number of women in management positions was calculated considering the number of women managers and middle managers in line with the new KPI Increase the number of women managers and middle managers of the 2020-2022 Sustainability Plan. Consequently, the corresponding value for the previous period was restated.

Workplace health and safety

Enel considers employee health, safety and general well-being to be its most valuable asset, one to be preserved both at work and at home. We are therefore committed to developing and promoting a strong culture of safety that ensures a healthy work environment and protection for all those working with and for the Group. Safeguarding our own health and safety and that of the people with whom we interact is the responsibility of everyone who works for Enel. For this reason, as provided for in the Group “Stop Work Policy”, everyone is required to promptly report and halt any situation of risk or unsafe behavior. The constant commitment of us all, the integration of safety both in corporate processes and training, the reporting and detailed analysis of all information, near misses, safety warnings, non-compliance, controls, rigor in the selection and management of contractors, the sharing of experience and best practices throughout the Group as well as benchmarking against the leading international players are all cornerstones of Enel’s culture of safety. These values are part of the SHE project, launched in 2018 and further strengthened in 2020.The project involves the Group’s people and suppliers with initiatives regarding safety, health and the environment. It is aimed at fostering continuous growth with our contractors, operational improvements and safety with equipment, tools and processes.
Safety is closely integrated into tender processes, and we closely monitor our contractors’ performance both upstream with our qualification system and ongoing as the contracts progress through numerous control processes and tools such as the Supplier Performance Management (SPM) system. During 2020, we further improved and integrated the HSE Terms into all contracts. These are binding conditions that companies must agree to when contracts are awarded. The document, unique for the Group, defines the requirements regarding health, safety and significant environmental aspects that the contractor must comply with and enforce with their subcontractors during the execution of works. In addition, during the year considerable impulse was given to the “Safety Supplier Assessment”, specific audits on safety issues to be undertaken at the suppliers’ premises and their worksites. The audits are performed during the qualification phase for each new supplier in cases where critical issues have emerged (severe or fatal injuries) or where the supplier has received a low SPM rating. In 2020, despite the COVID emergency, a total of 1,185 contractor assessments were performed.

The following table reports the main workplace safety indicators.

    2020 2019 Change
  millions of hours 403.239 398.553 4.69 1.2%
Enel millions of hours 125.264 129.069 (3.805) -2.9%
Contractors millions of hours 277.975 269.484 8.491 3.2%
Total injuries no. 210 292 (82.00) -28.1%
Enel no. 75 116 (41) -35.3%
Contractors no. 135 176 (41) -23.3%
Injury frequency rate (1) i 0.521 0.733 (0.212) -28.9%
Enel i 0.599 0.899 (0.300) -33.4%
Contractors i 0.486 0.653 (0.167) -25.6%
Fatal injuries no. 9 7 2.00 28.6%
Enel no. 1 1 - -
Contractors no. 8 6 2 33.3%
Fatal injury frequency rate i 0.022 0.018 0.004 22.2%
Enel i 0.008 0.008 - -
Contractors i 0.029 0.022 0.007 31.8%
High consequence injuries (2) no. 23 19 4.00 21.1%
Enel no. 3 3 - -
Contractors no. 20 16 4 25.0%
High consequence injury frequency rate i 0.057 0.048 0.009 18.8%
Enel i 0.024 0.023 0.001 4.3%
Contractors i 0.072 0.059 0.013 22.0%

(1) This index is calculated as the ratio between the number of injuries (all injury events including those with three or fewer missed days of work) and hours worked/1,000,000.
(2) Sum of:
-injuries that at December 31, 2020 involved more than six months of absence from work;

-injuries that at December 31, 2020 were still under investigation and are considered serious (initial prognosis > 30 days);
-injuries classified as “life changing accidents” (LCA), regardless of the number of missed days of work connected with them.

In 2020, the injury frequency rate for Enel employees declined to 0.599 injuries for every million hours worked (-33.4 compared with 2019), confirming the effectiveness of the safety strategy and policies implemented in the Group. In 2020, 1 fatal accident occurred in Brazil involving Enel Group employees, and 8 fatal accidents involving contractors (5 in Brazil and one each in Italy, Spain and Colombia). The causes of these nine fatal accidents were mainly associated with electrical incidents. Also in 2020, 3 “high consequence accidents occurred involving employees of the Enel Group, while 20 such accidents involved contractors. They were mainly of a mechanical nature.
Training and awareness-raising activities concerning issues relating to the protection of health and safety are a key element of the Group’s
safety culture. A number of communication campaigns were carried out during the year in areas of specific importance for the Company. At the same time, some 903,802 hours of training on safety issues were provided to Enel personnel.
The Enel Group has established a structured health management system, based on prevention measures to develop a corporate culture that promotes psycho-physical health, organizational well-
being and a balance between personal and professional life. With this in mind, the Group conducts global and local awareness campaigns to promote healthy lifestyles, sponsors screening programs aimed at preventing the onset of diseases and guarantees the provision of medical services. More specifically, we have a policy for the prevention of local diseases and provide support in the event of diseases or accidents abroad. A smartphone application is also available with travel information and guidelines on vaccinations, while a new global insurance policy has been taken out for all employees traveling abroad. The Enel Group has a systematic and ongoing process for identifying and assessing work-related stress risks, in accordance with the “Stress at Work Prevention and Well-being at Work Promotion” policy, for the prevention, identification and management of stress in work situations, also providing recommendations aimed at promoting a culture of organizational well-being.
The Group also constantly monitors epidemiological and health developments in order to implement preventive and protective measures for the health of employees and those who work with the Group, both locally and globally. Since the outset of the COVID-19 emergency in February 2020, Enel has taken steps to protect the health of all workers and ensure the continuity of electricity supply to the communities in which it operates. A global task force has been created, as well as local task forces in each country where Enel is present, to monitor the progress of the pandemic with dedicated indicators and immediately take all necessary prevention measures. Given the persistence of the COVID-19 emergency and its spread on a global scale, at the end of 2020 a HSE Emergency Management unit was set up within the Parent’s HSEQ department, with a focus on health, safety and environmental emergencies, with the objective of integrating the HSE emergency management process into the company organization and ensuring the integration and continuous alignment of strategy and the management of emergency events at the Business Line and Country level.
Since the beginning of the pandemic, new operating models have been activated to minimize the risk of contagion and specific prevention protocols have been implemented, dynamically adapting the activity plan and the measures defined in response to developments in the pandemic at a global level. All personnel whose jobs could be done remotely have been working using flexible working arrangements since the beginning of the emergency. For operational units (about 13,000 employees), who necessarily work in the field, stringent measures to contain the spread of the disease were applied through the division of teams into smaller nuclei (elementary cells) and the adoption of temporal and/or physical segregation measures. Stress tests were conducted for critical infrastructures with the aim of verifying their operation in various possible contagion scenarios. Information and training initiatives were launched for employees on the prevention measures to be adopted. Enel also invited its suppliers on a global scale to take all actions deemed appropriate to ensure the protection of the health of their workers and the limitation of the spread of the disease. Influenza vaccination programs were implemented as a preventive health measure in all the main countries in which Enel operates.

 

Responsible relations with communities

Last year was marked by the health emergency, which had sweeping socio-economic consequences at a global level. The economic effects of the crisis have also increased vulnerability and inequality in the communities in which the Group operates, but thanks to our strong and extensive roots in those communities we have been able to identify measures to provide immediate support to address health and socio-economic emergencies. From Europe to Latin America, Asia, Africa and Australia, the Enel Group implemented about 450 sustainability projects as an immediate response in two main areas:

  • containment of the health emergency with aid initiatives for hospitals and people working on the front line;
  • support for the economic revitalization of communities, through programs to support food security, development of micro-entrepreneurship, services for vulnerable customers and professional and educational distance training.

Our knowledge of specific local circumstances and constant listening to the needs of stakeholders have also made it possible to develop concrete responses to the new context delineated by restrictions such as social distancing and travel bans and the multiplicity of economic, social and cultural realities in which Enel operates and of which it is an integral part in the operation of our assets. Specific initiatives have focused on local socio-economic development plans, with targeted solutions to stimulate economic recovery through the development of local markets, specific services dedicated to vulnerable customers and actions aimed at combating energy poverty and ensuring social inclusion for the weakest categories of the population by leveraging access to new technologies and circular economy approaches.
The continuous attention to social and environmental factors, combined with the objective of contributing to the economic and social progress of the communities, makes it possible to create long-term value for the Company and for the communities in which it operates, promoting a new balanced development model that leaves no one behind. This model has been incorporated along the entire value chain: analyzing the needs of communities right from the development phases of new activities; taking account of social and environmental factors in the establishment of sustainable worksites; managing assets and plants to make them sustainable development platforms to the benefit of the territories in which they are located. Another development was the extension of this approach to the design, development and supply of energy services and products, helping to build increasingly sustainable communities.
In 2020, Enel developed over 2,100 projects with 8 million beneficiaries,(3) concretely contributing to the development and social and economic growth of local communities. The projects to ensure access to affordable, reliable, sustainable and modern energy (SDG 7) have involved 9.8 million people to date,(4) those to foster the economic and social development of communities (SDG 8) have reached 3 million beneficiaries,(5) while initiatives to promote quality education (SDG 4) have benefited 2.3 million people.(6)
A fundamental lever in implementing these projects is the use of about 1,000 partnerships with social enterprises, non-profit organizations, startups and institutions operating both locally and internationally that promote the development of the territory through innovative and tailor-made interventions. The search for social innovation ideas and solutions through the Open Innovability® ecosystem is constant, based on openness and sharing through various tools such as, for example, crowdsourcing platforms (openinnovability.com) and the Innovation Hub network.

The progress in terms of the Group’s contribution to achieving the United Nations Sustainable Development Goals (SDGs) has also enabled Enel to revise its 2030 goals, doubling the number of people it intends to benefit through projects to ensure quality education (SDG 4: target of 5 million beneficiaries by 2030) and access to energy (SDG 7: target of 20 million beneficiaries by 2030). The commitment to initiatives to promote long-lasting, inclusive and sustainable economic growth has also been confirmed (SDG 8: target of 8 million beneficiaries by 2030).

Sustainable supply chain

In addition to meeting certain quality standards, the services of our vendors must also go hand in hand with the adoption of best practices in terms of human rights and working conditions, health and safety and environmental and ethical responsibility. Our procurement procedures are designed to guarantee service quality in full respect of the principles of economy, effectiveness, timeliness, fairness and transparency. The procurement process plays a central role in value creation in its various forms (safety, savings, timeliness, quality, earnings, revenue, flexibility) as a result of ever-greater interaction and integration with the outside world and the different parts of the company organization. In 2020, we signed agreements with a total of more than 24,000 vendors.
Vendor management involves three essential stages, which integrate social, environmental and governance issues: the qualification system, the definition of general terms and conditions of contract, and the Supplier Performance Management (SPM) system in the evaluation process. Enel’s global vendor qualification system (with about 12,000 active qualifications as at December 31, 2020) enables us to accurately assess businesses that intend to participate in tender processes through the analysis of compliance with technical, financial, legal, environmental, health and safety, human and ethical rights and integrity requirements, representing a guarantee for the Company. As regards the tendering and bargaining process, Enel continued to introduce aspects related to sustainability in tendering processes, with the introduction of a specific “K for sustainability” factor, which takes account of environmental and social factors and supplier safety. Furthermore, specific contractual clauses regarding sustainability are envisaged in all contracts for works, services and supplies, including respect for and protection of human rights and compliance with ethical and social obligations. The SPM system is designed to monitor vendor services in terms of the quality, timeliness and sustainability of contract execution.

Furthermore, we continued working on those activities that enable the ever-greater integration of environmental, social and governance issues in the supply chain strategy, creating shared value with vendors. These include meetings and information initiatives with contractors on sustainability issues, with specific regard to safeguarding health and safety.

The circular economy

For Enel, the circular economy represents a strategic driver and a fundamental choice for achieving competitiveness objectives, both in economic terms and in terms of risk reduction, and, at the same time, creating a fully sustainable business model to respond to the great global environmental and social challenges.
The Group’s vision is based on five pillars, which act through three main levers: design, methods of use and the closure of cycles.


For the result to be effectively transformative, the circular approach must inevitably embrace the entire value chain. For this reason, it has been implemented in all the Group’s activities, acting both through the Business Lines, as regards technologies and business models, and through the Countries, as regards cross-sectoral synergies, collaborations and ecosystems. To this end, the main areas of activity address the following aspects.

  • Suppliers: the Circular Procurement strategy with suppliers has been operational since 2018 to measure the circularity of what we purchase, reward the most virtuous and co-innovate to rethink assets and products together.
  • Assets: the Global Power Generation and Global Infrastructure and Networks Business Lines are both reviewing the value chain of the main projects they have undertaken recently, such as smart meters, photovoltaics and wind power, from a circular point of view and leveraging their operational assets. Global Trading, bearing in mind the specificities of the various assets involved, is supporting this transition by extending its skills to the areas of new materials and secondary raw materials.
  • Customers: Enel X is marketing itself as an accelerator of the circularity of its customers, both by continuously measuring and improving its products and services and by providing measurement and consulting services to customers to increase their circularity.

Since the initial stages of adopting a circular approach, Enel has placed a strong focus on measuring the environmental and economic benefits of circularity, with the awareness that a model that exceeds and, ideally, eliminates the consumption of non-renewable resources must be measurable in order to be not only sustainable but also economically competitive. As part of the 2020 Capital Markets Day, for example, a new circularity indicator was introduced for generation assets, supplementing existing indicators on direct emissions. This additional indicator photographs the evolution over the years of the consumption of materials per MWh generated on a whole life basis, measuring the consumption of materials throughout the life cycle: from production to installation, to decommissioning of generation assets.

A concrete example of the Group’s circular approach is the “Circular Smart Meter” project, which represents a virtuous example of the application of the principles of the circular economy in Global Infrastructure and Networks. As the plan to replace 32 million first generation meters in Italy moves forward, Enel has decided to transform their disposal into an opportunity, using the material from the discontinued meters to build the new “Circular Open Meter”. To develop the device, a process for selecting and regenerating the polycarbonate from the discontinued meters was also developed, which in the future could also be extended to the other Country segments of the Group, where technically possible. In June 2020 the NMi Certification Body (Nederlands Meetinstituut) for the MID (Measuring Instruments Directive) approved the use of regenerated plastic for the Open Meter, and the manufacture of the initial lot of 30,000 Circular Open Meters began. Produced with 100% regenerated plastic, the new meters minimize the environmental impact for the benefit of customers, the territory and the environment. More specifically, the new process is estimated to have reduced CO2 emissions by 210 tons for the first lot compared with the traditional process, using a life cycle assessment method. Furthermore, thanks to the reintegration of the waste material from the old devices (mainly plastic) into the production process of the new Circular Open Meters, waste has also been reduced by an estimated 31.5 tons. In percentage terms, 48% by weight of the new meters consists of regenerated materials, ensuring the virtuous management of their end of life, for which the recyclability and reuse of materials (metals in addition to plastic) is estimated at about 79% by weight.

(1) The cost calculation takes account of the specific training account in the New Primo system. This includes all external training costs and is currently the only form of certified information on training costs available.
(2) ERR (Equal Remuneration Ratio) = fixed + variable remuneration of female managers/fixed + variable remuneration of male managers.
(3) Beneficiaries are the people for which a project is implemented. Enel only considers direct beneficiaries in the current year. The number of beneficiaries includes the activities and projects carried out in all the areas in which the Group operates (for companies within the scope of the Non-Financial Statement, the number of beneficiaries does not include companies accounted for using the equity method, Group foundations and non-profit organizations and companies operating within the Build, Sell and Operate mechanism).
(4) Cumulative 2015-2020 figures for total number of SDG 7 beneficiaries to date.
(5) Cumulative 2015-2020 figures for total number of SDG 8 beneficiaries to date.
(6) Cumulative 2015-2020 figures for total number of SDG 4 beneficiaries to date.