Introduction

Enel is a multinational electric utility operating in over 30 countries on five continents, with around 67,000 employees in 2020. It has a strong presence in Italy, Spain (via Endesa), and Latin America through Enel Américas and Enel Chile.

The group distributes electricity to over 74 million end users, operates about 49 GW of renewable capacity, and serves 70 million retail customers. Its 2021–2030 plan foresees €190 billion of investment: €160 billion directly and €30 billion from third parties. This includes €70 billion for renewables, €10 billion for networks, and €80 billion for electrification and digital platforms.

Enel aims to expand renewable capacity by 145 GW by 2030, exit coal by 2027, and cut direct greenhouse gas (GHG) emissions by 80% compared with 2017 levels.

Historical drivers and evaluation

Enel was established in 1962, initially relying on hydroelectric power. The 1970s energy crisis spurred renewable investments, including Italy’s first grid-connected solar plant and wind farm. Liberalisation in 1999 transformed Enel into a private company.

It has since pioneered smart meters (2001), joined the UN Global Compact, and launched Enel Green Power in 2008. In 2014, it integrated innovation and sustainability into business processes, and in 2017 created Enel X to advance digital energy solutions.

In 2019, renewable capacity surpassed fossil fuels, and the company issued the first sustainability-linked bond. In 2020, Enel announced a 10-year plan consistent with the Paris Agreement, committing to net-zero by 2050 across its value chain.

Sustainability disruption

Research highlights a strong correlation between ESG performance and financial outcomes, with sustainable funds outperforming traditional ones. Enel notes growing investor alignment with frameworks such as the TCFD and PRI.

The company reports on key issues under the SASB framework, including emissions, air and water quality, hazardous waste, materials management, governance, risk, access, affordability, and employee health and safety. Embedding sustainability improves operational efficiency, reputation, and financial results.

Strategic response

Enel’s long-term value creation is tied to supporting the UN Sustainable Development Goals (SDGs). Its strategy centres on decarbonising generation capacity (SDG 7), developing infrastructure and electrification (SDG 9), and deploying digital platforms (SDG 11). Climate action (SDG 13) is the backbone of the approach.

The integrated model combines profitability with sustainability, aiming to make Enel the world’s leading operator in renewables and networks. This supports predictable returns while minimising risks.

SDG investments

Since 2019, Enel has worked to link sustainability with enterprise value, emphasising decarbonisation, electrification, and enabling infrastructure. Over 90% of consolidated investments in its three-year Strategic and Industrial Plan are SDG-aligned.

Between 2021 and 2023, more than €40 billion will be invested in SDG-focused projects. Around 43% will support renewable capacity expansion, while infrastructure and networks aligned with SDGs 9 and 11 will represent about 42% of consolidated capital expenditure.

Assessing sustainability outcomes and financial results

Enel integrates SDG performance into strategic planning and reporting. Key performance indicators include renewable capacity, regulated asset base, smart meter deployment, customer value, storage, EV charging points, and GHG reduction.

By 2023, Enel targets a 64% reduction in Scope 1 GHG emissions from 2017 levels, and by 2030 an 80% reduction, consistent with a 1.5°C pathway certified by the Science Based Targets initiative.

Enel issued a sustainable finance framework in 2020, updated in 2021, and collaborates with academics on hybrid ESG metrics. It also promotes circularity as a way to deliver efficiencies, innovation, and value across its operations and value chain.