Enel has been included in the prestigious ‘A List’ for climate change released by CDP, the global environment impact non-profit that provides a platform to monitor business performance on the fight against climate change.
Enel’s Spanish subsidiary Endesa has been rated with an A-.
“Our inclusion in CDP’s A List is a recognition of our active commitment to address climate change by promoting the decarbonization of energy generation systems, while contributing to cut emissions in other sectors through the electrification of energy demand,” said Francesco Starace, Enel CEO and general manager.
“The strategic choice we made in 2015 to switch to a sustainable, integrated business model allowed Enel to position itself as a leader in the transition towards a zero-emission economy, in order to be best prepared for the challenges of climate change.”
Enel is one of a small number of high-performing companies included in CDP’s ‘A List’ based on their 2019 climate reporting. Enel was recognized for its management and transparency with regards to climate-related issues at both Board and Management levels, the Group’s measures to mitigate climate risks by boosting renewables and phasing out thermal capacity, its commitment, and actions to cut GHG emissions, as well as its ability to seize climate-related opportunities.
CDP’s environmental disclosure and scoring process, which evaluates businesses from A to D-, is globally recognized as the gold standard of corporate environmental transparency.
Companies’ performance in addressing climate change is assessed based on the level of disclosure, awareness and management of environmental risks, as well as the implementation of best practices related to environmental leadership, such as setting ambitious targets.
In 2019, Enel strengthened its commitment to climate action by setting a 2030 target to reduce its direct GHG emissions per kWh by 70 percent, from a 2017 base-year. Towards this goal, by 2022 the Group is expected to develop 14.1 GW of new renewable capacity and reduce coal production by 74 percent, with respect to 2018.
Through these initiatives, Enel is embedding climate action in its strategic decisions and operations to lead the energy transition.
Impact on credit rating
Demonstrating this commitment to the energy transition and willingness to ditch coal faster than other European utilities – is bolstering its credit-worthiness in financial markets, said S&P Global Ratings.
According to S&P Global analysts: “This is, to date…one of the largest pipelines in renewables in the world. We believe this not only marks the group’s acceleration in green energy but also reflects its balance sheet capacity and a strong market positioning.”
“We believe Enel’s ability to seize profitable opportunities as it proceeds through the energy transition is a key credit strength.”