Disclosure on Management Approach - Enel Listens to Society

Despite the worst crisis of recent decades and the disturbances it has caused in markets, Enel continued along its path of innovation, consolidation and integration last year. The industrial goals defined in its Strategic Plan were translated into an approach toward society based on transparency and dialogue that, while supporting business objectives, also created an ongoing discussion with stakeholders in the countries and communities in which Enel operates.
Enel is a multinational player aiming to consolidate its relatively recent plan for international expansion through the operational and cultural integration of the different national entities that make it up. To achieve this goal, Enel worked daily throughout 2009 to protect its institutional relations in a structured manner, always operating in synergy with each country’s government and supranational organizations and strengthening its capacity for geo-political analysis and its international network of relations. Against this background and with the introduction of a new Code of Ethics, Enel has further established its identity and its employees’ sense of belonging, while paying special attention to integrity and responsibility.
81,000 employees in 23 countries who speak 10 languages: the diverse origins, cultures, and backgrounds of the Enel world are a precious asset that should be valued, but also integrated. This integration has been promoted through programs aimed at raising awareness within the corporate population, but has also been stimulated by distributing and sharing tools to help professional families exchange information, creating an internal network that facilitates remote dialogue between the greatest possible number of people.
Strong competition in the energy sector requires the continual improvement and development of technology enabling the production of clean, low-cost energy, optimizing the production process and enhancing plant efficiency. To respond to these global needs, Enel research is working on innovative production technologies and has been supported by increased investment in science in recent years. Enel has paired these projects with a communications strategy strongly focused on the distribution of technical and scientific information and aimed at enhancing the social acceptance of initiatives and infrastructure projects, thus enabling energy development in the countries where the Company operates. The objective is to reduce the complexity of information by simplifying language, thus making the dynamics of plant operation and technology more comprehensible to the general population and enhancing the level of approval.
An innovative approach, it has been crucial to transforming Enel’s dialogue with institutions, associations, and citizens into a collective discussion aimed at creating a sense of responsibility in all those involved. In effect, Enel aims to continue improving its fiduciary relationship with partner companies, acting as a “good citizen” in all the countries worldwide where Group operations take place. Transparent, continual, and complete communication has been the foundations of this important path in community engagement, as has the exploitation of the expressive potential of new media.
In particular, Enel’s internet presence was completely renewed in 2009 so as to ensure compatibility and correspondence with the interests of stakeholders. The new site www.enel.com, with a completely revamped look and more abundant content in both Italian and English, aims to enable web communication on a global level and effectively present Enel’s news and projects. The site also intends to lever the web 2.0 model to facilitate interaction between the site and users, offering various tools for sharing Enel documents and multimedia content, from videos to tutorials, which will be periodically highlighted and expanded and used to present Group news and projects. Additionally, the portal – among the first for large Italian companies – aims to provide a part of its information in a more immediate and basic manner, thus adapting to the speed of internet communications through the integrated use of images associated with contents and interactive tools. The design and creation of the new site, in particular the more complete and updated Sustainability section, were considered priorities over revamping the Sustainability Meter. To this end, a new project, described in the 2008 Sustainability Report, is under way and scheduled for launch during 2010.
Also of note as concerns communication with different stakeholders was the preparatory Sustainability Day Workshop, which took place on October 30, 2009.
Over forty influential representatives from the sustainability field came from all over the world for the event, launching a global discussion on sustainability topics, which was also constantly posted on the project’s website (www.enelsustainabilityday.com).
Through the involvement of some of the most important international experts in the world of business, NGOs (non-governmental organizations), and universities, the goal of Sustainability Day, held in February 2010, was to identify new opportunities, share good practices, and create an international network of corporate responsibility.
Also in 2009, Enel established a Regulatory Advisory Board with the objective of stimulating and promoting public debate on the most important regulatory priorities, identifying the principal medium-/long-term trends in Italian and international regulation, and developing strategies and solutions based on research and more advanced study.
The Board includes diverse members in terms of both their professional backgrounds and their geographic locations, which enable it to provide a long-term vision of the topics discussed and stimulate a more in-depth and possibly exhaustive debate. The Board thus includes both Italian and foreign members from academia, public institutions, and the business world.
The Regulatory Advisory Board meets on a regular basis. In particular, due to the success and interest stimulated by its first public event, An integrated climate and energy policy: what rules for the electricity markets of tomorrow? (November 2009), Regulatory Advisory Board Conferences are now scheduled annually. The Board will also be expanded, with special attention paid to international representatives from the energy sector, so as to adequately reflect the various locations where Enel operates.
In order to maintain its economic, environmental, and social responsibilities, Enel will continue to place emphasis on exploiting – with particular regard to cultural and social change – the opportunities and challenges that it will continue to face as an important player in the international energy scene.

Endesa’s projects focus on social change by following specific principles aimed at:

• Providing access to electricity, integrating its operations with basic services for social change;
• Environmental awareness;
• Responding to the needs of the communities Endesa affects;
• Contributing to the generation of wealth and jobs;
• Ensuring continuous operation over time and strengthening best practices;
• Paying attention to people in difficult situations, in particular those in rural or
  dislocated urban communities;
• Cooperating with company representatives of the communities participating in projects;
• Communicating in a transparent and consistent manner with society.

The guiding principle for each project is to ”think globally and act locally”:
Endesa’s commitment to contributing to local development begins with the parent company and its local organizations and is achieved through the actions of its subsidiaries and companies throughout various countries.