Enel launches the world's first Sustainability-Linked Insurance Program

Published on Monday, 16 November 2020

“The launch of the world's first insurance program linked to sustainability goals is further proof of Enel's commitment to full integration of sustainability in all our business strategies and activities, as well as of the growing interest of the world of finance and now even insurance in sustainable financial products. There is a clear link between sustainability and value creation, since by investing in environmentally and socially sustainable projects, companies can maximize profits and minimize risks, while at the same time contributing towards the achievement of the SDGs. We are confident that companies will increasingly adopt this model, orienting their activities towards a global strategy that puts sustainability at the center of their business decisions.”

– Alberto De Paoli, Enel CFO

The pioneering insurance initiative has been possible thanks also to the support of the broker Marsh and of the insurance companies Allianz Global Corporate & Specialty (AGCS), AXA XL, Generali Global Corporate & Commercial Italia and Mapfre which, despite "hardening" market conditions, were able to recognize and share the importance of being "ice-breakers" even in this sector, acknowledging the value of Enel Group's strategy of which sustainability is an integral part.

The Enel Group is a leading player in sustainable finance, being an early issuer of green bonds, and among the largest corporate issuers of these instruments. In 2019, Enel marked the beginning of the Sustainability-Linked Bond Market, by issuing on the Euro and US dollar markets the world’s first general purpose bonds linked to the achievement of the SDGs. Enel then expanded the range of its Sustainability-Linked Financing instruments in 2020 with SDG-Linked Loans and Revolving Credit Facilities, as well as a SDG 7 Target Guaranteed Euro-Commercial Paper Programme, showcasing how sustainability can be integrated across all of the Company’s financing tools. Moreover, with the publication of the Sustainability-Linked Financing Framework, which provides the Group with global guidelines for the use of sustainable financial instruments, Enel became the first company in the world to define a framework for this kind of financing that offers a wide range of different solutions.

The Group’s commitment towards sustainable finance is further highlighted by Enel CFO Alberto De Paoli’s participation as co-chair of the UN Global Compact’s CFO Taskforce, which recently launched the CFO Principles for Integrated SDG Investments and Finance. These principles outlined a set of four values aimed at indicating how companies can align their corporate finance strategies to sustainability commitments in order to create a real-world impact towards the SDGs.

In addition, the Group is a member of the Advisory Council on ICMA Principles, the Corporate Forum on Sustainable Finance and the Sustainable Bond Market Advisory Group of the London Stock Exchange.