University of Oxford publishes “Enel: pathways to purposeful transformation through shared value and innovation” case study

Published on Friday, 23 April 2021

“It is an honor for us to welcome this publication by an academic institution as renowned as the University of Oxford. Over the years, our Group has successfully transformed its business, becoming a leader in shared value and sustainability, with our strategy’s core premise being ‘sustainability equals value’, and the strategy’s pillars further committing us to our transformation into a net-zero emission business. When it comes to shared value creation, we have taken a reverse innovation approach to spread and embed this concept across our business, starting in emerging markets to support the growth of renewables and then filtering it back into our legacy European businesses. Additionally, we have integrated sustainability into innovation, through Open Innovability® which means taking an approach that leverages on multiple ecosystems of players around the world with the aim to generate new innovation.”

– Ernesto Ciorra, Chief Innovability® Officer at the Enel Group

Facing the challenge of climate change, the energy sector is undergoing a radical shift away from centralized, fossil fuel-based power generation towards renewables and other sustainable energy solutions. Enel has assumed a leading role in the energy transition and aligned its corporate purpose, mission, and strategy with the UN’s Sustainable Development Goals (SDGs). Specifically, the Group has been directly targeting four main SDGs: SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 11 (Sustainable Cities and Communities), all contributing to SDG 13 (Climate Action).

By combining Open Innovability® and shared value creation, Enel is addressing growing industry challenges while fostering a strong culture of openness at all its organizational levels, through the commitment of its leadership team. Thanks to these characteristics, Enel is well positioned to shape a more sustainable and inclusive future for the energy sector.

All of the above fits within the commitment that Enel has instilled into its corporate purpose: “Open Power for a brighter future. We empower sustainable progress”, which is embedded across all Group activities, starting from its Strategic Plan.

Enel’s sustainability leadership is globally acknowledged through the Group’s presence in several renowned sustainability indices as well as rankings, such as the Dow Jones Sustainability Indices World and Europe, MSCI ESG Leaders Indices, the FTSE4Good Index series, the CDP Climate “A” List, the Euronext Vigeo-Eiris 120 indices, the STOXX Global ESG Leaders index, the ISS “Prime” rating, the Refinitiv TOP 100 Diversity and Inclusion Index, the Bloomberg Gender-Equality Index, the Equileap Gender Equality TOP 100 Ranking, the ECPI indices, and the Thomson Reuters/S-Network ESG Best Practices Indices.

The Group is increasingly attracting the attention of Socially Responsible Investors, whose stake in the company is steadily growing, representing now about 13.4% of Enel’s share capital, more than double compared to 2014 levels. This increase, which is in line with the growing recognition of the importance of non-financial elements in the creation of long-term sustainable value, reflects the bolstering of Enel’s global sustainability leadership.

This strategy has been thoroughly analyzed in the University of Oxford Case Study and was recently confirmed by Enel’s CFO Alberto De Paoli, who underlines the importance of creating value for all stakeholders, not just shareholders, and heading in the direction of a new form of capitalism called ‘stakeholder capitalism’. Today, a strategy that revolves around sustainability is the only way for a company to do business and survive long-term, including at the financial level.

Further information on Enel's 2030 strategic vision webinar with Enel CFO Alberto De Paoli can be found here: https://www.enel.com/company/stories/articles/2021/02/energy-revolution-meetenel