How do I ensure that my company is sustainable in the long run?

The path to sustainability in a company is unique. I researched this subject area for one of my clients. Based on this research, I am picking the case study of Enel, one of the world’s largest power-producing companies. Its 2019 revenues were reported to be $89.95 billion. The sustainability strategy developed by the group has been integrated with the group’s business model.
In response to the evolving market, the company has started focusing on decarbonization and gradually phasing out conventional power generation assets. These programs are supported by expanding digitalization to increase electricity consumption and improve grid efficiency.
The group has planned activities that will help achieve U.N. Sustainable Development Goal (SDG) 13 – Climate action, SDG 7 – Affordable and clean energy) and SDG 9 (Industry, innovation, and infrastructure), and SDG 11 – Sustainable cities and communities.
These goals will be achieved by accelerating the development of renewable energies, gradually closing coal plants, promoting electrification of consumption, and developing new services for end customers. It is building infrastructure and platform models to leverage technological and digital progress.
The group is increasing investments to bring forward Net Zero commitments to 2040. This objective will be achieved by speeding up the electrification of consumption. The shift of energy consumption to electricity will benefit customers in terms of costs, efficiency, reduced emissions, and price stability.
According to the company’s plan, the green strategy will increase the customer base by 12 million by 2030, reaching 86 million. The energy consumption through electrification will increase by 30 percent.
The transition to renewables will help reduce customers’ energy expenditure by up to forty percent. Decarbonizing the energy mix will reduce carbon footprint by up to eighty percent by 2030.
In 2019, Enel launched an SDG-linked bond. The first tranche for $1.5billion was floated on the U.S. market. The second tranche was launched in Europe and was for 2.5 billion Euros. The issuance was oversubscribed. Investors showed confidence in the issuance.
Enel got its ESG performance independently monitored. The monitor has said that as of November 2021, “Enel displays an advanced ESG performance, ranking 2nd in the European Electric and Gas utility sector, covering 64 companies. Enel’s performance is advanced in all three pillars: Environment, Social, and Governance.”

Supporting credentials:

Climate change: Financial risks and Opportunities

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