Value for countries and local areas

G4-EC7

Enel contributes in a concrete way to the social and economic development and growth of the local areas and communities where it operates with various types of intervention, from expanding infrastructure to education and training programs, from initiatives aimed at social inclusion to projects to support the cultural life of the area. The LBG (London Benchmarking Group) method, devised by a work group in which more than 100 international companies participate, is a measurement model that enables a company’s contributions to the development of the communities in which it is present to be clearly determined and classified. In particular, under the LBG standard, expenditure on contributions to communities can be classified in:

  1. charitable donations: these are pro bono contributions that create no obligations for the recipients except to use the donation for beneficial ends and for non-profit associations. For Enel this item includes all cash and in-kind donations, including philanthropic and charitable activities;
  2. investments in the community: medium/long-term involvement in projects to support communities, also in partnership with local organizations, aimed at addressing significant issues both for the local area and for the Company. This category includes, for example, projects linked to a broader strategy to benefit the community, such as “Access to Electricity”, or specific initiatives dedicated to communities close to power plants;
  3. commercial initiatives with a social impact: contributions to activities related to the core business, in which the Company promotes its own brand and corporate identity. Examples of these initiatives are marketing campaigns which also include benefits for the community or which include contributions to charitable causes.

In 2015 Enel’s total contribution to the communities where it operates stood at 67.8 million euro.

Initiatives in favor of communities by type (%) - 2015

Initiatives in favor of communities by type (%) - 2015

How sustainability translates into projects

The integration of sustainability into the strategies and operating choices of the business in the various stages of the value chain passes also through new ways of managing and developing projects. Starting from precise mapping of all the initiatives at global and local level, it then moves on, involving all the actors in the business and in the Innovation and Sustainability area, to defining new attributes to be assigned to the individual initiatives in order to enhance the accompanying information set and to use the same project categorization criteria at global level.

The projects which impact on communities are collected in 3 groups: “Access to energy”, “Social and economic development of communities” and “Support to local communities”. Here below they are set out in detail.

ACCESS TO ENERGY

 

ACCESS TO ENERGY

 

With the goal of creating a new business model based on access to energy, targeting both people living in isolated rural areas and those living on the outskirts of major metropolitan areas. These are projects which seek to:

  1. eliminate financial barriers to accessing electricity;
  2. develop technologies that facilitate access to infrastructure;
  3. promote technical training and capacity building;
  4. promote energy efficiency;
  5. promote energy awareness.

“Powering Education” (Enel Green Power Kenya)

Launched in September 2013, the project has distributed over 1,100 solar lamps in 70 rural villages which are off-grid, providing sustainable and safe electricity to over 5,500 people. The initial results showed that the students who had a lamp increased their average study time by around 17%. The families involved also reduced their electricity spending by 10-15%

“Consciência Ampla” (Brazil)

Integrated program to combat energy poverty and aimed at promoting social inclusion in the favelas and other high-risk areas. Through projects for waste exchange, social tariffs, business development and education, grid thefts, which are common in the areas concerned, have fallen by up to 70%

“PlayEnergy” (Italy, Spain, Romania, Russia, Guatemala, Chile, Costa Rica, Panama, Brazil)

Free project combining entertainment and education which Enel has been originating for 13 years in schools in 9 countries, with the objective of disseminating a responsible energy culture among young people, starting with the knowledge to enable responsible decision-making. In the latest edition of the program around 450 thousand students were involved, of whom around 140 thousand took part in the competition, teaching kits were distributed to around 8,300 schools and around 4,500 projects were undertaken; over 50 thousand students visited power plants and met Enel experts in class.

SOCIAL AND ECONOMIC DEVELOPMENT OF COMMUNITIES

 

ECONOMIC DEVELOPMENT OF COMMUNITIES Projects Beneficiaries Projects Beneficiaries 636k 313 3.7M SUPPORT TO LOCAL COMMUNITIES SOCIAL AND ECONOMIC DEVELOPMENT OF COMMUNITIES

  Includes projects relating to:

  1. development of labor;
  2. community network;
  3. development of infrastructure;
  4. transfer of know-how and skills to the local population;
  5. support for entrepreneurial activities in the community.

“San Juan de Marcona” (Peru)

In the Nazca area the entire fishing sector has been redesigned. It is a project which includes training on safety when fishing and the installation of a system to dry algae and the construction of a fish farm as well as marketing training. It is the first structured case of measuring social impact through a SROI (Social Return on Investment) model.

”Apiacás” (Brazil)

The project to develop the worksite at Apiacás is the first real example of the application of the Sustainable Worksite. Communities, after due training, contribute to the design and realization.

“Eco sustainable constructions - circular economy” (Chile)

Professional training in carpentry and construction using recycled materials to build eco sustainable houses through the use of pallets and local materials.

SUPPORT TO LOCAL COMMUNITIES

 

SUPPORT TO LOCAL COMMUNITIES

  Includes initiatives relating to:

  1. education;
  2. financing local events;
  3. support for families and social services;
  4. promotion of culture and sport;
  5. promotion of diversity, health and safety;
  6. protection of the environment and biodiversity.

“Educando con Energía” (Colombia)

The program aims to increase professional skills and provide more work opportunities to over 5 thousand young people from public schools in the poorest areas of Bogotá which are at the greatest social risk. The initiative focuses on promoting interpersonal skills, such as teamwork, leadership, effective communication and ethics. At the same time the importance of sustainable growth is valorized, which is the basis of the business.

The first stage was started by an interdisciplinary team consisting of psychologists, social workers and teachers, who, after assessing the current professional skills of the young people, defined specific personal development plans to be followed through multidisciplinary activities and group sessions. In order to ensure the success of the project, also 1,200 parents and 780 teachers have been trained and involved.

“Mothers2Mothers” (South Africa)

M2M helps the prevention of HIV transmission between the mother and child by improving women’s health. By increasing mothers’ access to healthcare systems, the project has enabled the risk of HIV transmission to the child to be reduced to under 5%, a figure well below national values, as set out in the annual report for 2014-2015 by M2M, the NGO which Enel Green Power works with in carrying out the project.

These projects contribute to achieving the commitments entered into by Enel at the 2015 UN Summit on Sustainable Development, with particular reference to SDGs 4, 7 and 8.

Enel undertakes to guarantee access to affordable, sustainable and modern energy which will benefit 3 million people, mainly in Africa, Asia and Latin America.

Enel undertakes to guarantee access to affordable, sustainable and modern energy

Enel undertakes to guarantee high-quality, inclusive and fair education, supporting educational projects for 400 thousand people by 2020.
Enel undertakes to guarantee high-quality, inclusive and fair education
Enel undertakes to achieve the eighth UN SDG, promoting employment and sustained, inclusive and sustainable economic growth for 500 thousand people, through business growth, the realization of infrastructure and professional training.
Enel undertakes to achieve the eighth UN SDG, promoting employment and sustained, inclusive and sustainable economic growth

In order to create value in its business areas Enel draws on the support of partners in the local area, who bring innovative ideas to be transformed into concrete actions. Dialogue with communities is at the heart of the business model and the presence of NGOs in the local area, with their profound knowledge of local contexts, enables the creation and implementation of innovative initiatives which are targeted at the needs of stakeholders and help in the process of local development. Partnerships between private individuals and non-profit organizations are therefore an important driver to encourage the social and economic development of communities, generating shared and lasting value. In keeping with innovation and decentralization and support for small business and social and economic development, numerous partnerships have been started with NGOs and non-profit operators worldwide.