A Creating Shared Value (CSV) model has been in place since 2015, integrating social and environmental factors into business processes and throughout the entire value chain. For the model to be implemented, it had to be defined and established within the Company at both cultural and operational level. In 2016, Policy no. 211 “CSV Process definition and management” was published. It defines how sustainability must permeate company processes across the board, making it a shared responsibility. Furthermore, in 2017, the individual Group countries implemented the Group policy within specific organizational documents, defining the application methods of the CSV model based on their specific business characteristics and the context in which they operate.

The CSV model has 6 phases, that correspond to specific supporting applications, as shown below.

The CSV model tools and the site materiality matrix mean it is possible to identify short-, medium- and long-term actions that combine the Company’s perspective with the needs of local communities through concrete and recognized initiatives. There is a particular focus at all times on identifying and protecting the local communities involved in the projects, in compliance not only with Convention 169 of the International Labour Organization and local regulations, but above all with the relevant traditions and cultures.

CSV model (Creating Shared Value)

CSV model (Creating Shared Value)

The model applies to the entire value chain, including business development, engineering and construction, and asset management and maintenance.

In order to boost the diffusion of the Creating Shared Value model, 2017 saw a number of internal workshops in which colleagues from various countries looked at practical cases. Thanks to the proactive approach taken, this generated new solutions and ways to apply the integrated model to the business and to the local environment.

An inclusive approach towards the stakeholders also means circular economy solutions: infrastructure of decommissioned power plants can be can transformed into other ways to benefit the community, while involving various stakeholders. An example is the Futur- e project in Italy, which aims to turn 23 power stations into eco-sustainable places dedicated to science, art, culture or tourism, and new industrial activities. Further details on the project are available at https://corporate.enel.it/en/ futur-e, in a bid to provide maximum transparency to all information concerning the program.

In 2017, there were 412 new applications2 of the CSV model across the various stages of the value chain: Business Development (BD), Engineering and Construction (E&C), Operation & Maintenance (O&M).

Application of the CSV model in the Group

Application of the CSV model in the Group

Below are some examples of CSV projects that have involved various business areas in a number of countries where Enel operates.

Transforming waste into something of value

ARGENTINA: Infrastructures and Networks - O&M phase

In Argentina, a circular economy initiative called “Social Recycling” is now underway for the reuse of disused material from distribution network maintenance activities. The initiative supplies wooden materials (such as cable reels, pallets, etc.) to a local foundation that produces furniture from recycled material. This furniture is then sold at cheap recprices, so low-income families to buy it. Furthermore, it was possible to equip a school canteen to the south of Buenos Aires thanks to a specific agreement, creating a comfortable environment for students, most of whom come from foreign families and/or families with financial difficulties. The project enables the inclusion and integration of vulnerable sections of the population, while creating new jobs and developing specific technical skills.

BRAZIL: Renewable Energies - E&C phase

In 2017, Enel launched two solar photovoltaic plants in Brazil, with the Ituverava and Nova Olinda parks – the two largest photovoltaic parks currently operating in South America. Ituverava is located in the municipality of Tabocas do Brejo Velho, in the north-eastern state of Bahia; a region with a population of only 13 thousand inhabitants, characterized by a rich natural diversity and strong sunlight that makes the area particularly hot. To reconcile business development and the needs of local communities, Enel has launched initiatives in the areas near the plant, including creative recycling workshops to produce furniture and objects commonly used with construction materials, such as pallets and reels. Some local carpentry workshops opened after these training activities came to an end. The project is therefore an example of a circular economy, giving new life to waste materials, and opening dialogue with the communities involved, allowing the growth of specific skills and the improvement of the economic conditions in those communities.

Customer focus and engagement

CHILE: Infrastructure & Networks and Market

Transparency, effectiveness and proximity are key elements of customer relationships. The “Enel Chile in your neighborhood” initiative involves customers in specific projects and initiatives, including the construction of mobile offices in the most deprived areas of Santiago with high populations and limited access to services.

These offices mean customers can save costs and time in paying bills, obtain additional information on the services offered by the company and report any network failures.

This is an inclusive and shared value approach that allows the company to have direct contact with customers and to promote new, more efficient consumption models and solutions that are increasingly sustainable from an economic, social and environmental point of view.

PERU: Market

Many customers in Peru live in poor socio- economic conditions. Enel Perú has therefore decided to launch the “Enel Seguros” program in collaboration with the main insurance companies of the country, offering packages at affordable prices, covering the subject in the event of fire, accidental deaths, partial and permanent disability and assistance legal and home care. Coverage and assistance are provided both for the person who has taken out the policy and for their spouse/cohabitant. In the event of the death of an insured family member, the policy also guarantees payment of electricity bills for one year following the death.

This model creates value for all parties involved as it improves the quality of life of those facing difficult economic conditions (200 thousand policies provided so far). It also allows insurance companies that have joined the initiative to reach a type of clientele they might not usually be able to attract with their standard offers, opening up Enel to new businesses and insuring against the risk of non-payment of bills.

Local entrepreneurship development

RUSSIA: thermal generation - O&M phase

The Group company that operates four thermal power plants in Russia, Enel Russia, has launched a project for collaboration and engagement with local stakeholders in recent years, with a view to strengthening relations with the communities living in areas close to the plants.

After a local materiality analysis carried out through interviews with citizens and local organizations, Enel Russia started specific collaborations with a number of local social centers. These centers support people involved in cases of domestic abuse, child exploitation and disability, and provide support for families. A model of social entrepreneurship was born from this collaboration which provides support in the creation of goods, products and works of art and their sale, including through courses and events in the area.

The project offers people in difficulty a greater opportunity for integration into society through the creation of small businesses. At the same time, the company has been able to benefit from the collaboration with the centers by involving staff in voluntary activities and cultural exchanges, and taking advantage of the additional services offered by the centers themselves such as courses for employees, street art, etc.

Futur-e

ITALY: the Santa Barbara project

The former Santa Barbara mining area is an area of about 1,600 hectares near the Santa Barbara thermal power plant, in the Municipality of Cavriglia in Tuscany. Since 1994, it has been out of use following the depletion of the lignite mining basin. This area has been included in the Futur-e project (https://corporate.enel.it/ en/futur-e) transformation program, under which it is to be converted from an unused mine to provide opportunities for land development.

In 2017, Enel launched a project for the recovery and redevelopment of the area together with citizens, institutions, universities and local and national companies. The first meeting attracted about 70 people including representatives of institutions, experts, entrepreneurs, local associations, key local figures and Enel’s people. A number of urban plans were identified based on various studies of the local economic context, the expectations of the local communities and some possible planning scenarios for the development of the area. An international team of 60 students enrolled in their fourth and fifth years at the faculties of architecture and urban planning at Milan Polytechnic and the University of Florence is working on these development scenarios.

A number of international competitions will be launched based on the scenarios defined in the first phase of the project. These will feature a main theme of the search for a perfect balance between social, environmental and economic sustainability, while focusing on the issue of employment. Enel, institutions and the academic world will assess the proposals to check whether they are suited to the expectations of the local communities and to ensure the sustainable development of the area and the scope for integration with the existing redevelopment project.

Protection of biodiversity and power lines

ROMANIA: Infrastructures & Networks - O&M phase

Enel Romania is the Group company that manages the distribution network in three main areas of Romania, covering one third of the country’s energy distribution. The country has a lot of white storks, which often build their nests on low-voltage power-line pylons, causing injury to themselves due to electrocution and damaging the electricity grid, with consequent interruptions of the electric service.

In 2017, Enel Romania launched a pilot project in collaboration with the Ornithological Society of Romania (SOR) and with the other distribution companies of the country. The aim was to conduct a census of the population of white storks in the country, to collect data and information on the number and location of the nests near the network, and to adopt measures for the protection of the birds and the power lines involved. The company developed a smartphone app to facilitate the collection of this information which involved not only Enel’s people but also local communities.

During the pilot stork census campaign, more than 2,800 nests were found in just under a month, most of them located on power-line pylons. Thanks to the information obtained, it was possible to map the areas and power lines at risk, in turn allowing adequate protection measures to be adopted. Specific nest supports were built and installed on the poles concerned and electrical cables were covered with an insulator, ensuring not only the protection of biodiversity but also service improvement thanks to the reduction in the number of repairs on power lines. The initiative is part of the project that has been in place at Enel Romania since 2010 and has seen the installation of over 650 support platforms for the nests to date and the use of more than 3,800 insulation sheets on cables and electric poles of the network.

Sustainable construction site

SPAIN: thermal generation - E&C phase

The Foix power plant, located in Cubelles, near the city of Barcelona in Spain, is a former oil-gas power plant consisting of a 520 MW unit, which was in service from 1979 to 2010. In 2015, the national administration authorized its closedown and decided to dismantle it by March 2019. Decommissioning and dismantling of the power plant began in March 2017 and will last for approximately 21 months.

The site is managed according to Enel’s “Sustainable Construction Site”, which includes actions to reduce the impact on the environment and the preservation of natural resources, including the collection and reuse of rainwater, the use of solar energy and LED lighting in construction sites, the use of low-emission vehicles and sustainable materials, such as biodegradable oil, and the prevalent use of local suppliers to foster economic development. Enel’s aim with the sustainable site approach is to foster integration and collaboration with contractors, local suppliers and community members to achieve common goals.

In accordance with circular-economy principles, the dismantling of the plant, including the demolition of the chimney (about 180 meters high), is carried out through a selective demolition process that optimizes the separation of different materials to maximize their reuse and recycling. More than 70% of all demolished materials are expected to be recovered, including more than 24 thousand tons of metallic material, more than 47 thousand tons of concrete and about 6 thousand tons of special waste. In addition, about 40 tons of materials in the disused plant were donated and sold as second-hand parts. This included different machinery and laboratory instruments donated to the local scientific community, part of the 300 m2 ceramic mural by local artist Pedro Llorente, installed on the facade of the turbine building, donated to the Municipality of Cubelles, as well as books, an early 20th century press that still had the anchor symbol of the port. The Foix site is the first example of large-scale application of the selective demolition technique in Enel.

 

2 An application is the use of at least one CSV tool in relation to an asset, at any stage of the value chain and in any Business Line. CSV applications in the BD phase include applications relating to BD opportunities (also in initial stages) and business projects leaving the pipeline in 2017. They can also be related to assets in O&M if modernization projects are under way. CSV applications in the E&C phase may relate to assets transferred to the O&M phase at the end of the year. The number of CSV applications in Infrastructure & Networks (I&N) can refer to the concession area but also to areas identified by municipalities and substations. The applications of the CSV model take into account the activities and projects carried out in all the areas in which the Group operates (including companies consolidated at equity, the Group’s foundations and non-profit organizations, and companies for which the BSO - Build, Sell and Operate mechanism has been applied).