ENDESA 2017-2019 Sustainability Plan · Sustainability Priorities to lead Energy Transformation ......
Transcript of ENDESA 2017-2019 Sustainability Plan · Sustainability Priorities to lead Energy Transformation ......
ENDESA
2017-2019 Sustainability Plan
Index
ENDESA´s Business Model1
Context analysis
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
2
3
4
5
2
Index
ENDESA´s Business Model1
Context analysis
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
2
3
4
5
3
ENDESA´s Business Model
4
Key Business Figures
~50%Free CO2 production(2)
12.3 Mnend users
116 TWhDistributed Energy
11 MnElectricity customers
1.5 MnGas Customers
NOTE: Data as of 31/12/2016
1: Gross capacity
2: Production (TWh bus bars)
23.7 GW Installed capacity(1)
69.8 TWhProduction(2)
6.4 GW Renewable + Hydro
Capacity(1)
5
ENDESA´s Business Model2016 Key Financial Figures
13.54
0.64
2.05
2.08
Power sales
Other sales and services
Regulated revenue from electricity
Electricity Distribution
€ 18.3 Bn
2016 SALES
2.2
0.5
0.4
OPEX
CAPEX (O&M)
CAPEX (Investment)
€ 3.1 Bn
2016 CAPEX & OPEX
35%
11%2%
52%
Generation and supply
Non-mainland
Renewables
Distribution
€ 3.4 Bn
2016 EBITDA
Data as of 31/12/2016
6
ENDESA´s Business Model2016 Key Non-financial figures
100 % of energy produced in
ISO 14001 certified facilities
43% CO2 emission reduction
(compared to 2005)
26 biodiversity projects
developed in 2016
+800,000 beneficiaries in the
200 social investment projects
developed in 2016
29.3% women in managerial
positions
~ € 2,000 Million in sales to
+6,000 suppliers in 2016
+ € 16 Million invested in
R&D in 2016
Leadership in Customer
Satisfaction(2% over competitors)
+80% employees trained in
ethics in 2016
Environmental Figures Social Figures Economics and Ethical Figures
Data as of 31/12/2016
Renewed in Sep 2016Score: 86/100
Renewed in October 2016 Score: B (Climate) y A- (CDP
Water)
Included in Sep 2016Leaders in Social dimension
Renewed in Nov 2016 (World, Europe and Eurozone)
Renewed in
January 2016
Index
ENDESA´s Business Model1
Context Analysis
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
2
3
4
5
7
Framework for Sustainable Development
8
Building Transparency
Approval of Directive 2014/95/UE
regarding disclosure of non-financial
and diversity information by certain
large undertakings and groups
Spanish Sustainable
Development Strategy
Approval of the 2014-2020
Spanish CSR Strategy to progress
towards a more competitive,
productive, sustainable and
inclusive society and economy.
Responsibility of Board of
Directors
Approval of the Code of Good
Governance of listed companies
of the CNMV, that links
Corporate Social Responsibility
to the highest level of decision.
Paris Climate Change Agreement, COP 21
The Paris Agreement’s central aim is to strengthen
the global response to the threat of climate change
by keeping a global temperature rise this century
well below 2 degrees Celsius above pre-industrial
levels and to pursue efforts to limit the temperature
increase even further to 1.5 degrees Celsius.
October
2014
October
2014
February
2015
October
2015
December
2015
New Frameworks to promote Sustainability and Corporate Responsibility launched in the previous years
Sustainable Development Goals
Agenda
Adoption of the 17 United Nations
Sustainable Development Goals, to
eradicate poverty, protect the planet
and ensure prosperity.
.
GLOBAL ECONOMY
Urbanization
Digital and
Technological
revolution
Decentralized energy
management
EFFECTS RISKS
Urban growth driven
by developing world
Large scale urban
infrastructure needs Urban Poverty
Big data
Change of security
and policies to focus
on dealing with
cyber crime
Emerging multi polar
world order
Failure/shortfall of critical
infrastructure
Adverse consequences of
technological advances
Large scale Cyberattacks
Challenges and global opportunities
PEOPLE
Demographic change
Civil Society
strengthening
ENVIRONMENT
Climate change
Decarbonization of
energy mix
Resources stress
An aging world
Rising inequalities
Faster dissemination
of information
through social media
accelerates action
Increasingly
connected
population
Profound social instability
Large scale involuntary
migration
High structural unemployment or
underemployment
Unpredictable,
dramatic ecosystem
impacts
The challenge of
global cooperationFood and
agricultural pressure
A greater role for
cities
Extreme weather events (e.g.
floods, storms, etc.)
Failure of climate change
mitigation and adaptation
Food crises
Increased water
demand
Energy demand on
the rise
Water crises
9
Sustainability Trending Topics
10
Materiality Analysis Result
Financial
Strength
Innovation and
Operational
Efficiency
Ethic Conduct and
Good Governance
Energy
EfficiencyCustomer
relationships
Economics and
Governance
Social
Customer
Area
Responsible Relationship
with Local CommunitiesOccupational
Health and Safety
Sustainability Topic
Note: results of the materiality analysis carried out in 2016 to identify stakeholders expectations based on internal and external consultations.
Renewable
Energies
Traditional
Technologies
Efficiency
Climate
ChangeDecarbonization
Index
ENDESA´s Business Model1
Context Analysis
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
2
3
4
5
11
12
Good Governance
Health and Safety
Environment
Supply Chain
Financial value creation
Dig
ita
liza
tio
n
Custo
me
rDecarbonization
Efficiency
Human Capital
Local Communities
ENDESA´s industrial priorities
Sustainable Business Model
Responsible Business Management
ENERGY MIX DECARBONIZATION
DIGITALIZATION
CUSTOMER FOCUS
OPERATING EFFICIENCY AND INNOVATION
INTEGRITYLOCAL
COMMUNITIESHUMAN
CAPITALENVIRONMENTAL
SUSTAINABILITY
SUPPLY
CHAIN
HEALTH AND
SAFETY
Stakeholder
expectations
Sustainable Development
Frameworks
Su
sta
ina
bilit
y P
rio
riti
es
CONTEXT ANALYSISSUSTAINABILITY STRATEGIC PRIORITIES
Defining priorities
ENEL commitments to UN SDGs
Decarbonization
Customer orientation Digitalization
Efficiency
Inte
rna
l d
ime
nsio
nE
xte
rna
l d
ime
nsio
n
Smartgrids
12
ENDESA 2017-2019 Sustainability Plan
13
DIGITALIZATIONCUSTOMER
FOCUS
VALUE ADDED
SOLUTIONS
QUALITY
ENERGY MIX
DECARBONIZATION
HUMAN
CAPITALLOCAL
COMMUNITIESINTEGRITY
ENVIRONMENTAL
SUSTAINABILITYSUPPLY CHAIN
CO2 EMISSION REDUCTION
RENEWABLES
SUSTAINABLE BUSINESS MODEL
HEALTH &
SAFETY
OPERATING EFFICIENCY
AND INNOVATION
Responsible Business Management
ASSETS
CLIENTS
PEOPLE OPEN
INNOVATION
ASSETS
MANAGEMENTECONOMIC
AND
FINANCIAL
VALUE
CREATION
Structure
Index
ENDESA´s Business Model1
Context Analysis
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
2
3
4
5
14
4.7 4.7
1.7 2
2016 2019
Energy Mix Decarbonization
15
CO2 emission reduction Free-CO2 Production
Renewable capacity development
51
29 2720
100
2005 2016 2020 2030 2040 2050
Energy Mix 100% Decarbonized by 2050
43% 47% ~61% ~80% 100%
100% CO2 emission reduction by 2050
540420 367 302
1110
2005 2016 2020 2030 2040 2050
22% 32% ~44% ~80% ~100%
Absolute emission (MtCO2)1
Specific emission (tCO2/GWh)1
33%
49%54%
63%75%
100%
2005 2016 2020 2030 2040 2050
Free-CO2 emission production (%)
Vs 2005
Vs 2005~ 0.3 GW
Hydro
CAPEX 2016-2019: € 502 Million
Renewable (Wind, PV…)
Installed Capacity (GW)
1: Estimation considering the total production of ENDESA at bus bars.
NOTE: Data includes acquisition of EGPE from July 2016
<~
~
<
Production (GWh)
7.2 6.9
1.25
2016 2019
+50%
~ € 10 Million
Digitalization
16
Approach Investment (2016-2019 CAPEX)
Customer
Asset
• Assets digitalization
• Smart Grids (LV, MV & HV)
• Process
• Facilities
• Competences
• Back office
• Customer
relationship
• New Services
• Organization
• Framework
• Training
• Cloud migration
• Technological
update
• Efficiency
• Interaction
• Connectivity
People
Cyber security
Platform
Cloud
~ € 830 Million CAPEX in digitalization for 2016-2019 period 1
Thermal Generation Assets
~ € 760 Million
Distribution Assets
~ € 60 Million
Customers
1: Gross investments (It does not include capex referred to VAS)
1.9
3.6
2016 2019
17
Thermal Generation Assets Customers
Digitalization Project in
Besos Power Plant
Big Data Project for Thermal
Generation Assets
management
8%
15%
2016 2019
4.5
5.7
2016 2019
Digital Customers
(Mn)
Digital Sales
(%)
N. of customers
with e-bill
(Mn)
x 2.5 x 2
x 2
Distribution Assets
0%19%
71%
2016 2017 2019
HIGH VOLTAGEMEDIUM VOLTAGELOW VOLTAGE
9.211.2
12.5
2016 2017 2019
35%
People
Development of programs for
digital transformation
of employees
(E-talent program)
~ 2,000
Employees engaged
Period 2017-2019
Visits to Twenergy
(Mn)
62%75%
93%
2016 2017 2019
Digitalization (cont.)
LV: Smart meters
(Million) (accumulated)
MV: Smart remotes
(% plan)
HV: Remote control
system technological
upgrade
(% plan)
1.6
3.7
2016 2019
18
Ciber Security
Web application exposed at Internet protected by
applicative advanced solutions at Cyber security
Constitution and accreditation of
CERT (Computer Emergency Response Team)
(In 2017)
Scope Main Objectives
Cyber security awareness events
every year
+15
25%
75%100%
2016 2017 2019
Digitalization (cont.)
Customer Focus
Value-Added Services (VAS) Quality
~90
200
2016 2019
Gross Margin
(€ Million)
Renewable E - Mobility Efficiency Air ConditioningIoT Maintenance
x 2.2 Margin Increase
Solutions Portfolio
€ 242 Million
2016-2019 CAPEX
Gross Investment
(€ Million)
Value-Added Services
1st ranked Company
in Customer Satisfaction period 2017-2019
Customer Satisfaction
19
6.36.8
7.2 7.2
2014 2015 2016 2019
Global Customer Satisfaction Index
(Domestic, Business and Large customers)
Operating Efficiency and Innovation
20
Operating Efficiency Open Innovation
Distribution Electricity losses (1)
(%)
8.4%7.9%
7.4%
2016 2017 2019
12%
Interruption time(min)
58
5756.3
2016 2017 2019
Energy Recovery ( 2017-2019)3,776 GWh
~3%
DISTRIBUTION
RENEWABLE ENERGY
98% 98.2% 98.2%
2016 2017 2019
93.6%
96% 96.2%
2016 2017 2019
Wind – Solar – Biomass
(Efficiency, %)
Hydro
(Efficiency, %)
Period 2017-2019
Launch of OPEN POWER
challenge every year1
New innovative start-up every
year2
Launch of new Innovation
Projects every year
Innovation Events every year
Quality
100% Power
generation Facilities
(obtain in 2017 and maintain)
100% Hydro Facilities
(obtain in 2017 and maintain)
2
2
ISO 9001 Certification
Period 2017-2019
100% Renewable
Facilities (Wind; PV)
(maintain in 2017-2019)
1: The figures do not include HV Transmission Grid losses
21
176
240
240240
240240
2015 2016 2017 2018 2019 2020
Access to energy
+ 1.37 MM (2015-2020)
+ 960,000 people benefited in 2017-2020
period
+ 3 MM (2015-2020)Commitment
Local Communities
People benefited (thousands)32
41.5
4242
4242
2015 2016 2017 2018 2019 2020
Socioeconomic Development
+241,000 (2015-2020)
+ 168,000 people benefited in 2017-2020
period
+ 1.5 MM (2015-2020)
People benefited (thousands)
Contribution
4
31.6
32
32
32
32
2015 2016 2017 2018 2019 2020
Access to Education
164,000 (2015-2020)
~ 128,000 people benefited in 2017-2020
period
+ 400,000 (2015-2020)
People benefited (thousands)
Note: Data until 2020 have been included in order to be aligned with public ENEL commitment with the Sustainable Development Goals (2015-2020). Moreover, ENDESA and ENDESA’s Foundation activities are included.
Access to energy: Includes projects to minimize economic barriers to access to energy, promotion of training capacity and capacity in the field of energy, promotion of energy efficiency, awareness of the use of energy and technological development and
infrastructures to facilitate the Access. Moreover, programs to facilitate access to energy to people in vulnerable situation are included.
Socioeconomic Development: Includes projects to promote employment and generate economic activity in the community, Transfer of knowledge and training, Support to local business activities, Infrastructure development and Community network
Education: Includes projects to support training activities involving students, families, colleges and universities and promotion of academic training, in general, not related to energy, through scholarships, chairs, etc.
Access to
electricity for
vulnerable
households
People per year
(period 2017-2020)
+60,000
Commitment
Contribution
Commitment
Contribution
Integrity
22
Good governance & Transparency Ethical Conduct
Development of the internal regulation to prevent
market abuse
Transparency promotion regarding diversity
in the Board of Directors and related
Commissions: Implementation of Directive UE
2014/95 regarding disclosure of non-financial and
diversity information.
30% of Women in the Board of Directors
in 2020
Employees trained in ethics (%)
Score over 95/100 in the Code of Conduct criteria of Dow
Jones Sustainability Index, in the period 2017-2019.
100% of Verifiable claims analyzed within 90 days in the
period 2017-2019
85%90%
97.5%
2016 2017 2019
Annual verification of the efficiency of the Criminal Risk
Prevention Model
Human Capital
23
Performance Appraisal
Employee Satisfaction
100%
Coverage Participation Feedback
2017-2019 period (% employees) *
99% 93%
Diversity
Work-life Balance
+5,000
employees benefited due to the
improvements implemented at the
workplace
(accumulated 2017-2019)
42 50 60
2016 2017 2019
Services that promote employee
work-life balance**
100%
Climate Survey
Coverage
80%83% 84%
2016 2017 2019
Participation (% employees)
30.45%33%
37%
2016 2017 2019
16.4% 16.5%
18.5%
2016 2017 2019
% Women new hires Managerial positions covered
by women (%)6.5% 2.1%
Training
2017-2019 period
33 33 31
13 13 15
2016 2017 2019
Face to face Online
Average training per employee every year
46Average training
hours per employee
every year
* Number of offices included in the Project: 5 in 2016 and 6 from 2017. Annual increase corresponds to the extension of services offered to other offices.
** The perimeter considered is ENDESA’s workforce, including Enel Iberoamerica employees and without considering ANAV.
5.19
3.01
1.64
1.01 1.19 1.14
2010 2012 2014 2016 2017 2019
Occupational Health and Safety
24
Health
Safety
Awareness
Safety evaluations done
under EcOS Program (Extra Checking On site)(1)
45
Period 2017-2019
~ 27,000Medical check-ups (2017-2019 period)
+ 720awareness programs on
Health and Safety promotion
in period 2017-2019
0 fatal accidents (employees + contractors)
Accident ratio reduction
Accident ratios
230 235245
2016 2017 2019
Number of Actions
+ 198,000Safety Inspections in
company and contractors
facilities
1: EcOS program includes a deeper on-site evaluation in which safety, health, environment and quality issues are checked.
2: From August 2016, Enel Green Power España is included.
Combined Injuries Rate (LTIFR)2 (employees and contractors)
Reduce
23%Environmental Footprint
by 2019
(compared to estimated 2016)
Environmental Sustainability
25
Environmental Management Air Quality
Water Management
Biodiversity and environmental awareness
+ 20 Biodiversity Projects per year
2017-2019
+ 234,000Number of beneficiaries of the environmental
awareness and nature restoration projects
(2017-2019)
Maintain
100%Generation Facilities
(Thermal + Nuclear)
certified by ISO 14001
Maintain
100%Distribution activity
certified by ISO 14001
Specific Water consumption in
Power Plants
0.88
0.65
2016 2019
SO2
NOx
Particulates
Specific Emission (g/kWh)
~26%
1.19
1.01
2016 2019
(2017-2019)
Waste Management
Waste production(Hazardous and Non-hazardous)
Period (2017-2019)
Note: Data regarding generation include: Thermal Generation, Nuclear and Renewable
< 35 mg/kWh
Per year in 2017-2019 period
15%< 45,000
Tons per
year
Recovery of coal-fired
products (%)(2017-2019)
> 18% annual
< 930 m3 / GWh per year
Environmental Sustainability(cont.)
26
Fleet Management
+500,000 Kms
with e-Car Sharing service
(2017-2019)
+350
Parking slots for electric
cars at ENDESA’s offices
in 2019
10% Emission Reduction by 2019 (vs 20161)2
+33%
Travels with shared taxi
service by 2019
Sustainable Mobility
Employees mobility
In itinere
In Mission
+250
Electric vehicles
purchased by
employees in 20172,062 2,0121,762
424420
410
78 110
250
2016 2017 2019
Combustion Hybrid Electric
x3Electric Vehicles by 2019
(vs 2016)
17%Hybrid Vehicles by 2019
14%Reduction in the internal
Combustion Fleet by 2019(vs 2016)
2,564 2,542 2,422Total Fleet
1: Emissions as of 31/12/2016: 6,531 ton CO2
2: Emission reduction due to the electric mobility plan for employees or the use of shared taxi service not included.
109 109 108
2016 2017 2019
15.815.7 15.6
2016 2017 2019
Environmental Sustainability(cont.)
27
Offices Management
Energy consumption1
(GWh)
-500 MWh ~1,000 m3
0.5% Annual Reduction
Water consumption1
(million m3)
0.5% Annual Reduction
Waste Production
(packages)1
(ton)
~0.2 ton
0.5% Annual Reduction
~45,000 m2
Office portfolio surface
optimization (m2 reduced)
(2017-2019)
+30% Reduction of CO2 emissions in ENDESA's offices by 2019 (vs 20162)
Reduction of consumption and waste production Space optimization
~ € 26.2 Mn
Invested for the Integration of
the offices into the environment
(2017-2019)
27
Social activities carried out in
propietary assets
(2017-2019)
Waste Production
(paper)1
(ton)
~1 ton
0.5% Annual Reduction
1: Only SIGAEC (22) Buildings are included.
2: Emissions as of 31/12/2016: 11,971 ton CO2
31.431.2
30.9
2016 2017 2019
63.863.5
62.8
2016 2017 2019
55% 57%
65%
2016 2017 2019
Sustainable supply chain
28
Suppliers Contractors
63% 65%
75%
2016 2017 2019
Purchase Volume (€)
Qualification1 Performance Assesment2
0%20%
60%
2016 2017 2019
55% 65%80%
2016 2017 2019
15% 20%
60%
2016 2017 2019
Human Rights Health and Safety Environment
Purchase Volume (€)
(prior to service) (after service)
1: Supplier Qualification System
2: Vendor Rating System
3: Generation Line Suppliers not included.
~ 1,500
contractors3
work with ENDESA
Audits to contractors on social, ethical
and environmental issues
(period 2017-2019)
>60%% of the Qualifications that verify issues related to:
Datos acumulados
Economic and financial value creation
29
EBITDA (Bn €) NET PROFIT (Bn €)
3.4 3.4
3.7
2016 2017 2019
+9%
The leadership on energy transformation will allow ENDESA to create
Sustainable Economic Value in the period 2017-2019
Dividend per share (€)
1.4 1.4
1.7
2016 2017 2019
+21%
1.33
1.37
1.57
2016 2017 2019
+18%
Minimum DPS of € 1.32 per share
Index
ENDESA´s Business Model1
Context Analysis
Global Agenda 2030: ENEL and ENDESA’s commitments to UN SDGs
Sustainability Priorities to lead Energy Transformation
2017-2019 Roadmap: Sustainability Targets
2
3
4
5
30
UN Sustainable Development GoalsENEL and the Sustainable Development Goals
Supporting education activities for
400,000 people until 2020
Promoting affordable, sustainable and
modern energy to 3 Million people until
2020
Promoting employment and sustained,
inclusive and sustainable economic growth
for 1.5 Million people until 2020
Being Carbon neutral in 2050 and emission
reduction under 350 gCO2 /kWh in 2020
(-25% vs 2007)
2030 Agenda for Sustainable Development ENEL’s Commitment to UN SDGs
31
32
1: (% reduction vs. 2005)
2: Data refered to 2016-2019 period
3: Vulnerable customers certified by the corresponding Departments of Social Services of the Public Authorities
4: The Objective has been updated to 12.5%
Note: Endesa also contributes to commitments set out by Enel on SDG 4 (Education) and SDG 8 (socioeconomic development) through the social initiatives performed by the Company and its Foundation
ENDESA´s contribution to UN SDGs
(2021)
23
1
4
33
2017-2019 Sustainability Plan
Decarbonization of the Energy Mix
Digitalization
Customer Focus
Aiming at operating efficiency and innovation
Engaging the local communities
Integrity
Human Capital
Occupational Health and Safety
Environmental Sustainability
Sustainable Supply Chain
Economic and financial value creation
1 2 3 4 5 6 7 8 9 10 11 12 13 1514 16 17
Enel Group’s Public commitment to United Nations
UN Sustainable Development GoalsENDESA’s contribution to UN SDG’s through 2017-2019 Sustainability Plan
ENDESA’s contribution to UN SDGs communicated to investors in November 2016
The 2017-2019 Sustainability Plan contains the description of the actions that aim to contribute
to the achievement of the objectives set by the Company in its 2017-2019 Strategic Plan.
The actions described in the 2017-2019 Sustainability Plan are based on the business
hypothesis of the 2017-2019 Strategic Plan so that the same factors and risks are applied and
therefore the results of such actions could differ materially from those expected.
Disclaimer