“We are extremely pleased about this sought-after award. Sustainability, of which corporate governance is an integral component, continues to be key in backing our digital revolution in the power sector, with the end goal of increasing value for all our stakeholders and Society as a whole. As Enel’s business model places innovation and sustainability at the core of all Group activities, this award acknowledges our wider business strategy as well as our benchmark corporate governance practices”
The prize, now in its fourth edition, awards companies with an extraordinary track record of leadership in the corporate governance sector. Ethical Boardroom analysed the corporate governance of competing companies on the basis of publicly available data, using approximately 120 qualitative and quantitative indicators, which are divided into one or more key performance indicators (KPIs) and grouped into four macro-areas: board composition & leadership, board committees & quorum, shareholders' rights, engagement & transparency.
Enel’s corporate governance is highly appreciated by investors mainly for the strong presence of both independent directors (78%) and directors nominated by institutional investors (three out of nine). Other main strengths include a fair and transparent remuneration policy applicable to directors and senior officers and a sound internal control and risk management system.
Regarding gender diversity, three out of nine directors are women, including Enel’s Chairman Patrizia Grieco. In 2016, Enel’s corporate governance committee was renamed “corporate governance and sustainability committee”, with a stronger commitment to support the Board of directors on sustainability issues.
Sustainability is the cornerstone of Enel’s business. The Group’s 2018-2020 strategic plan shows the deployment, across the board of the 17 United Nations Sustainable Development Goals (SDGs), of Enel’s sustainable business model throughout the value chain. In particular, the plan confirms and strengthens a specific commitment, originally undertaken in September 2015, to reach the following SDG targets:
- 800,000 beneficiaries of high-quality, inclusive and fair education by 2020, doubling the previous target of 400,000 beneficiaries (SDG 4)
- Three million beneficiaries of access to affordable and clean energy by 2020, mainly in Africa, Asia and South America (SDG 7)
- Three million beneficiaries in terms of employment and sustainable and inclusive economic growth by 2020, doubling the previous target of 1.5 million (SDG 8)
- Climate change: reduction of emissions to less than 350gCO2/KWheq by 2020 (SDG 13)
Enel's commitment to adhering to the highest sustainability standards has increasingly attracted the attention of socially responsible investment funds. Based on the latest figures as of December 2017, SRI (Socially Responsible Investor) funds own 8.6% of Enel’s total outstanding shares, recording an increase on the 8.4% posted in June 2017, and represent 11.3% of the Enel’s free float (11% as of June 2017).
Enel is included in the world’s leading sustainability indices, including the Dow Jones Sustainability Index World, the FTSE4Good index, the Euronext Vigeo-Eiris indices, the STOXX Global ESG Leaders indices, the Carbon Disclosure Leadership Index and the ECPI Index Series.
Ethical Boardroom is the premier, subscription-based magazine and website that is trusted by influencers for delivering in-depth coverage and astute analysis of global governance issues. The magazine is published quarterly and distributed to 48,000 executives, corporate secretaries, general legal counsels and board directors of both publicly traded corporations and large private companies worldwide, as well as to institutional investors.