Enel has published the new financial sustainability framework and takes a new step on the path of a dedicated to the UN goals of sustainable development. The new protocol adopted by Enel establishes a series of key performance indicators, identifying objectives and principles to be adopted to allow the Group to follow global guidelines on the use of sustainable financing instruments.
In a context in which sustainability plans have now become fundamental tools on which to build the future of companies, Enel takes a further step forward by clarifying, in the name of transparency, which the parameters that the company intends to follow to increase its level of sustainability.
As envisaged in the strategic plan to 2022, the group led by Francesco Starace aims to bring the incidence of sustainable sources of financing on its gross debt to 43% in 2022 and to 77% in 2030 compared to around 22% recorded in 2019. For to achieve these objectives, precise criteria will be respected, precisely established within the new Sustainability-Linked Financing Framework.
"This framework represents an important milestone for Enel on its journey towards fully integrating sustainability into its corporate financing strategy,” said Alberto De Paoli, Enel's Chief Financial Officer. “By establishing objectives and KPIs (Key Performance Indicators, ed.) clear in the use of sustainability-related financing instruments, the framework will help ensure the implementation of a coherent financing strategy that supports the company's commitment to achieving the United Nations Sustainable Development Goals (SDGs).
Enel's framework was built on the basis of the Sustainability-Linked Bond Principles 2020 of the International Capital Market Association and the Sustainability-Linked Loan Principles 2020 published by the Loan Market Association relating to sustainable loans.
Going into detail, the document focuses above all on Sustainability-Linked Bonds, Sustainability-Linked Loans and the Target SDG 7 Guaranteed Euro-Commercial Paper Programme.
They are five key components of the document:
- selection of performance indicators relating to the quantity of direct greenhouse gas emissions and the percentage of installed renewable capacity;
- precise and calibrated thresholds will be applied to the indicators on the basis of the Sustainability Performance Targets to demonstrate a high level of ambition;
- the financial characteristics, the bonds and loans issued under the Framework will be subject to changes in the financial characteristics depending on the achievement of the sustainability targets;
- Enel will publish reports at least once a year that give an account of the results achieved by the performance indicators.
- The verification of the results of Enel's KPIs will be conducted by independent third parties.
