Enel’s business model has been structured so as to support the commitments made by the Group in the fight against climate change. In 2019, Enel, responding to the call for action from the United Nations, signed a commitment to act to limit the increase in global temperatures to 1.5 °C and be net zero across its entire value chain by 2050.
The business model delineates how the organizational units of the Company, linked to our three main businesses, must work to reap all the possible benefits from the main trends in the sector, possibly accelerating their implementation as well.
The role defined for all the major organizational units is also intended to enable them to effectively address all the risks posed by developments in the rapidly changing energy industry.
Working transversally across organizational units, thanks to the platform-based digital models implemented to connect assets, data and solutions, it will also be possible to seize new opportunities to create value through two complementary business models:
- the Ownership business model, in which platforms are promoters of the business in support of the profitability of direct investments in renewables, grids and customers, supporting sustainable long-term growth, in which platform-based operating models also play an important enabling role;
- the Stewardship business model, in which the Group offers important services, products or know-how through platforms that mobilize investments, including third-party investors, to maximize value creation. More specifically, this comprises:
- operating platforms, which deliver services to third parties using know-how and best practices developed over time;
- business platforms, which generate new products and services and thus new business opportunities for a broad range of customers;
- joint ventures and partnerships, in which joint investment opportunities foster the creation of value thanks to platforms that enable third-party investments.
In this design, each Country organization acts within its territory in a matrix relationship with the broader and more Global Business Lines, managing activities such as relations with local communities, regulation, the retail market and local communication. The mission of each business can be summarized as follows:
- Global Power Generation: the Group operates through this Business Line to accelerate the energy transition, continuing to increase investments in new renewable energy capacity, and manages the decarbonization of its generation mix and the countries in which it operates, always aiming to ensure the safety and capacity of electrical systems.
- Global Trading: this Business Line manages our integrated margin as a single portfolio in which Generation and Retail operations are always balanced effectively. In addition, the line manages all trading operations on international desks.
- Global Infrastructure and Networks: in developing and operating infrastructure that enables the energy transition, the Group ensures the reliability in the supply of energy and the quality of service to communities through resilient and flexible networks, leveraging efficiency, technology and digital innovation, and ensuring appropriate returns on investment and cash generation.
- End-user Markets: through its sales relationships with end users, the Group interacts locally with millions of families and companies. Thanks to our technology, the platform model enables us to improve customer satisfaction and the customer experience, while at the same time achieving ever higher levels of efficiency. The business units optimize the supply of power to their customer base, maximizing the value generated by that resource and fostering long-term relationships with customers.
- Enel X: this Business Line is enabling the energy transition by acting as an accelerator for the electrification and decarbonization of customers, helping them to use energy more efficiently, driving circularity and leveraging the assets of the Enel Group through the delivery of innovative “beyond commodity” services.
By exploiting the synergies between the different business areas, implementing actions through the lever of innovation and deploying Open Power approaches, the Enel Group seeks to develop solutions to reduce environmental impact, meet the needs of customers and the local communities in which it operates and ensure high safety standards for employees and suppliers.