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Report Sustainability 2019

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Report Sustainability 2019 There are energies that are generated day by day, that are nurtured and grow thanks to a network that keeps us connected. We are the energy that enables us to express each other’s possibilities in the best possible way, and to protect our planet and promote social development. Curiosity has opened us to new perspectives. Being brave has allowed us to make them come true and create new business models for ourselves, our customers, our shareholders and the communities within which we operate. Because what yesterday was just an idea, is today a reality INFORME DE SOSTENIBILIDAD 2019 INFORME DE SOSTENIBILIDAD OPEN POWER HACIAFOR A BRIGHTERUN FUTURO BRILLANTE.FUTURE. WEPROMOVIENDO EMPOWER SUSTAINABLE EL PROGRESO PROGRESS. SOSTENIBLE. enel.com.co SUSTAINABILITYINFORME DE SOSTENIBILIDAD REPORT 2019 2019 SUSTAINABILITY REPORT 2019 For our Company, the sustainable business strategy and with our contractors, we held in 2019 several training and Letter to model integrates social, economic and environmental skills certification programmes with the aim of strengthe- stakeholders opportunities, which has led us to create value on an on- ning the culture of safety and promoting the value of life going basis, helps us to face challenges and motivates us as a principle of safe work for all. to work together to create inclusive development models In terms of innovation, Enel-Emgesa obtained in 2019 its for our stakeholders. We also have the desire to contri- first patent with the project “Oxygen Microinjection and bute to a world where energy is always at the service of Dosing System for Discharge Water in a Hydroelectric the community to promote development, growth and a Power Plant”, granted by the Superintendence of Industry better quality of life for all. and Trade through Resolution 46923. This latest patent is In this sense, we have strengthened our commitment to the 13th Enel Group patent in Colombia. be allies in mobilising sustainable development and be In 2019 we had more than 2,000 employees, to whom we part of the country’s energy transition, a true process of provide opportunities for decent and quality work, with transformation where urbanisation, decarbonisation and comprehensive development strategies geared towards electrification represent major changes in terms of new well-being and happiness as the engine of growth. technologies and new uses of energy. We promote collaborative, inclusive and diverse work The results that we achieved and that we share in environments and scenarios that motivate innovation, this Sustainability Report are grounded on our efforts enhance leadership and enable resilience in the face of towards excellence in operations, the environment, constant changes and global dynamics. health and safety, innovation, people and the creation of We believe that being sustainable means going beyond long-term shared value. our duty: it is taking our energy further and further, se- Enel-Emgesa is now one of the three largest electricity eking to become an engine of opportunities and deve- generators in the country, with an installed capacity of lopment for society as a whole. We focus our efforts to over 3,500 MW, more than 80% of which comes from decisively contribute to the fulfilment of the Sustainable renewable sources. In 2019, we generated more than Development Goals as the basis of our corporate strate- 15,000 GWh to supply 20% of the country’s energy de- gy and purpose towards a horizon of sustainability. mand. With these actions, we delivered during the year direct Furthermore, at Enel-Codensa we promote the develop- benefits to more than 200,000 people throughout the ment and automation of our networks to expand service country, with the development of high-impact projects coverage and ensure affordable and non-polluting ener- aimed at promoting quality education (SDG 4), access to gy distribution, with more than 70,000 km of transmis- energy (SDG 7), decent work and economic growth (SDG sion and distribution networks for the energy supply 8), the consolidation of sustainable cities and communi- of more than 3,5 million homes, businesses, industries ties (SDG 11), and protecting and caring for the environ- and institutions in increasingly connected and intelligent ment (SDG 13). cities: we deliver the energy that drives the dreams of Sustainability is therefore part of our DNA: it is our millions of Colombians. strategy and way of getting things done; the path that Low carbon growth through technologies and services guides us towards a different way of perceiving energy, is a strategic pillar for our Company, which is why in one that invites us to openness to motivate change, stay 2019 we worked to lead the network’s digitisation and connected and provide sustainable solutions to future thus achieve an increasingly efficient operation. We also challenges. We invite you to learn about the actions and promoted an early spread of advanced metering as a results achieved during the year along this path. base platform to introduce the use of Non-Conventional Renewable Energy Sources in local networks. In our Companies, we promote the Enel Group’s objecti- ve of ensuring zero accidents and prioritising people’s Lucio Rubio Díaz Country Manager – Enel Colombia lives over our operations, which is why, hand in hand 4 BilancioSUSTAINABILITY di Sostenibilità REPORT 2019 2019 EXECUTIVESUSTAINABILITY REPORT 2019 SUMMARY 5 01. 02. 03. 04. 05. Letter to stakeholders 3 Executive Creating Foundations Methodological Appendix Summary Long-Term Note Sustainable Value Improving synergies and promoting Corporate Governance 196 Methodological note 296 Letter from Verifier E&Y 300 growth 11 Occupational Health and Safety 218 GRI Content Index 304 Materiality Analysis 26 Environmental sustainability 234 Sustainability Plan 2019-2021 36 Operational Excellence for Better Sustainable Supply Chain 268 Sustainable Development Goals 42 Service 54 Creation of economic and financial Climate Action 100 Circular economy 46 value 280 Environmental, Social and Our People and their Value 106 Governance (ESG) Indexes And Communities and Shared Value 146 Rankings 50 Innovation 178 Digitisation and Cybersecurity 190 6 SUSTAINABILITY REPORT 2019 EXECUTIVE SUMMARY 7 1. EXECUTIVE SUMMARY Improving synergies and promoting growth Codensa and Emgesa: Innovation in the Colombian energy sector GRI Standards 102-01, 102-02 and 102-05 The companies Codensa S.A. ESP and Emgesa S.A. ESP were created from the capitalisation of the company Empresa de Energía en Bogotá, EEB, in 1997 and since then they perform with quality and excellence in response to The Enel Group operates the energy demands of several regions in the country. in 34 countries, genera- ting energy through a The two organisations are currently part of the Enel Group, a leading energy net installed capacity of multinational considered one of the top global integrated operators in the about 86 GW electricity and gas sector. The Enel Group operates in 34 countries, generating energy through a net installed capacity of about 86 GW, distributing electricity and gas with a network of more than 2 million kilometres, and providing its services to more than 71 million users around the world, the widest customer base among European operators. Codensa S.A. ESP Emgesa S.A. ESP Shareholding Structure Economic Voting Economic Voting participation rights participation rights Enel S.p.A 48,3% 56,7% 48,5% 56,4% Grupo Energía de Bogotá S.A ESP 51,3% 42,8% 51,5% 43,6% Minority shareholders 0,37% 0,44% 0,1% 0,01% 10 SUSTAINABILITY REPORT 2019 EXECUTIVE SUMMARY 11 Codensa and Emgesa: Scale of the Organisation Innovation in the GRI Standard 102-07 Colombian energy sector GRI Standards 102-02 102-04 102-06 Emgesa Total 145 454 employees 599 women men The Enel Group companies are Emgesa has 15 hydroelectric power Codensa ensures the distribution and Collaborators responsible for the generation, plants and two thermal power sale of electric service to 3,526,776 transmission, distribution and sale of plants, located in the departmen- residential, commercial, industrial 2,103 Codensa electrical energy in Bogota, Cundi- ts of Cundinamarca, Bolivar and and institutional customers, as well namarca, Boyaca and Tolima, under Huila, for industrial and commercial as public lighting in Bogota, Cun- 524 980 1,504 women men an ongoing and solid management customers, providing specialized dinamarca, eight municipalities in Collaborators for users of the regulated market consulting in energy negotiation and Boyaca, one in Tolima, one in Caldas (residential, commercial, industrial specific responses to their challenges and one in Meta. and institutional customers) and in this area. the deregulated market (consumers of more than 55 MWh per month Economic Performance or that have more than 0,1 MW of installed power). Codensa Emgesa Revenue $ 5,464,557 million $ 4,091,858 million EBITDA margin on revenue 33.63% 57.06% Emgesa Codensa EBITDA $ 1,837,848 million $ 2,334,969 million Generation Transmission Distribution Sale Emgesa Generation Final product The generation capacity of hydrau- (Energy) lic and thermal sources remained Energy demand: constant throughout 2019, which 15,200 GWh strengthens the Company’s relation- Hydraulic energy ship of trust with its customers in the generation: Wholesale and Deregulated markets. Residential Public 14,591 GWh Customers Lighting Energy generation: 15,225 GWh Thermal energy Commercial Industrial Customers generation: Customers 635 GWh Net generation capacity: Institutional Customers 3,506
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