Enel

InfluenceMap Score
B
Performance Band
83%
Organisation Score
75%
Relationship Score
Sector:
Utilities
Head​quarters:
Rome, Italy
Brands and Associated Companies:
Endesa, Enel Green Power , Empresa Nacional de Geotermia, Enel Brasil
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Enel is strategically engaged on various EU climate change policy streams, with predominantly positive lobbying positions. The company is generally supportive of the energy transition, in particular the expansion of renewable energy, however it has supported new fossil gas infrastructure since the Russian invasion of Ukraine.

Top-line Messaging on Climate Policy: Enel’s top-line messaging on climate policy is positive. The company stated support for the EU’s Climate Law, which sets a carbon neutrality target for 2050, in its 2021 Sustainability Report published in April 2022. In the same report, the organization stated strong support for the UN Paris Agreement goals, and advocated for higher National Determined Contribution ambition, and supported Article 6 finalization. In October 2021 Enel signed a Global Wind Energy Council joint manifesto that called for policymakers to increase the ambition of government regulation on climate change to align with a net-zero economy. Enel supported climate provisions in the Build Back Better Act in a September 2021 open letter to US Congress.

Engagement with Climate-Related Regulations: Enel is strongly supportive of EU climate regulation. Enel strongly supported the EU Emissions Trading Scheme (EU ETS) reform, calling for the Linear Reduction Factor to be increased, the Market Stability Reserve to be strengthened, and the scheme to be extended into the transport and buildings sector in a November 2021 EU public consultation response. In another November 2021 EU public consultation response, the company supported the EU's Carbon Border Adjustment Mechanism, advocating to include the hydrogen sector, and supported the EU Commission’s proposed phase out of the free allocation of emissions allowances over a ten-year period from 2026-2035. Outside Europe, Enel has also supported emissions trading policy, for example, in a January 2022 letter to the Virginia General Assembly, the company supported the Regional Greenhouse Gas Initiative in Virginia.

In a November 2021 EU public consultation response, Enel supported an increase in ambition of the EU’s Energy Efficiency Directive reform to align with the EU’s other climate objectives, however it did not seem to fully support the Energy Savings Obligation. In a July 2021 consultation response on the EU Energy Performance of Buildings Directive, Enel supported an energy efficiency renovation rate of at least 3% per year by 2025, clear limits on energy use, and a gradual phase out of fossil fuels. In a July 2022 letter to the EU Commission, the company advocated for stringent criteria for renewable hydrogen production within a Renewable Energy Directive Delegated Act. The CEO actively engaged on the EU’s 2030 GHG emission reduction target in 2020-21, and he advocated for a target of “at least 55% by 2030” in a July 2021 CEO Alliance open letter. The company advocated for stronger energy efficiency standards in the US and supported the Virginia Clean Cars vehicle fuel economy standards in a January 2022 letter to the Virginia General Assembly.

Positioning on Energy Transition: Enel supports the transition of the energy mix, however the company has supported new fossil gas infrastructure since the Russian invasion of Ukraine. In a May 2022 interview with CNBC, the CEO advocated for new re-gasification infrastructure in Europe, while maintaining that the bulk of infrastructure spending should be on renewable energy and phasing out fossil fuels. Enel supported the recommendations of the European Commission’s Technical Expert Group on the EU’s sustainable finance taxonomy, in its 2020 European Taxonomy Report, published in April 2021. This advocated for an electricity generational threshold of 100gCO2e/kWh, declining to 0gCO2e/kWh by 2050 to ensure no inclusion of unabated fossil gas. The company supported the revision of the Energy Taxation Directive (ETD) to remove exemptions for fossil fuels in a November 2021 EU public consultation response.

On its corporate website, accessed in April 2021, Enel supported the use of green hydrogen in heavy industry and transport sectors, while it expressed caution against use of blue and gray hydrogen, which use fossil gas to produce hydrogen, and hydrogen blending with fossil gas. In May 2022 feedback to the EU Commission on the EU’s Hydrogen and Gas Decarbonization Package, the company advocated against blending fossil gas and hydrogen on the basis that renewable hydrogen should be used in only hard-to-abate sectors, and supported the phase out of unabated fossil gas.

Industry Association Governance: In its 2021 Sustainability Report, Enel disclosed a review of its industry association memberships providing some transparency around its indirect influence, but has not fully met investor expectations. A detailed assessment of the company's industry association review can be found on our CA100+ platform here. The review stated ‘medium’ alignment with Confindustria and Confederación Española de Organizaciones Empresariales (CEOE) which take largely unsupportive positions on climate change policy. The company is also a member of numerous industry associations which actively and positively engage on climate change. These include influential roles on the board of the International Emissions Trading Association (IETA), SolarPower Europe, Wind Europe, and SmartEn.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2022.

Additional Note: The government of Italy owns 23.59% of Enel. It is likely that Enel retains channels of direct and private engagement with Italian officials that InfluenceMap is unable to assess. As this is not publicly available information, it is not reflected in Enel's engagement intensity metric.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
85%
 
85%
 
85%
 
85%
 
47%
 
47%
 
74%
 
74%
 
87%
 
87%
 
66%
 
66%
 
95%
 
95%
 
91%
 
91%
 
57%
 
57%
 
67%
 
67%
 
87%
 
87%
 
51%
 
51%
 
75%
 
75%
 
90%
 
90%
 
48%
 
48%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.