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Sustainability Report SUSTAINABILITY REPORT ENDESA, UNA DE LAS MAYORES EMPRESAS ELÉCTRICAS DEL MUNDO 1 ENDESA O7 INFORME DE SOSTENIBILIDADCONTENTS PRESENTATION 4 ENDESA, ONE OF THE LARGEST ELECTRICITY COMPANIES IN THE WORLD 7 ENDESA’S COMPLIANCE WITH SUSTAINABILITY COMMITMENTS 39 Commitment to service quality 40 Commitment to the creation of value and profitability 60 Commitment to the health, safety and personal and professional development of those working at ENDESA 72 Commitment to good governance and ethical behaviour 98 Commitment to environmental protection 112 Commitment to efficiency 142 Commitment to Society 156 APPENDICES Appendix I: ENDESA, committed to reporting on Sustainability 174 Appendix II: Independent Assurance Report 176 Appendix III: GRI content and indicators 178 endesa07 4 SUSTAINABILITY REPORT For the seventh consecutive year, ENDESA’s Annual Sustainability Report provides its stakeholders with a detailed analysis of our sus- tainable development initiatives of the last year. In my view, we should highlight three very important aspects: Firstly, there has been a notable increase in the company’s sus- tainability initiatives. When ENDESA approved its Seven Commit- ments for Sustainable Development in 2007, it was a clear public declaration of certain business principles of conduct, which the com- pany had already followed for many years. The public nature of these commitments and their adoption by everyone who works for the com- pany, gave a new boost to our sustainability efforts, and will mean a significant increase in our initiatives in this field in the coming years. In this context, certain milestones reached in 2007, which are discussed in full detail in this report, are particularly illustrative. In PRESENTATION Spain we obtained the highest level of service continuity in the his- tory of ENDESA and a customer satisfaction quotient for our electric- ity provisioning services of eight out of ten. In addition, we invested Euro 4,746 millions, of which 90% was allocated to energy infra- structure. We also cut our accident rates by 21.7% and spent 1.8 million hours on employee training, while maintaining the efficiency of our Ethics Channel. Furthermore, ENDESA cut its CO2 emissions by 36.5%, with respect to the company’s emission levels in 1990. Meanwhile, we continued our research into CO2 capture and storage systems, and developed a Global Energy Efficiency Plan, and lastly, Euro 39.2 millions was invested in social initiatives, which represents 1.5% of the total earnings for the year. These and other data contained in this report give continuity to our widely respected commitment to sustainable development. In recent years, ENDESA has been rated one of the world’s leading companies with regard to sustainability by important entities such as the Dow Jones Sustainability Index, where it has been ranked PRESENTATION 5 for the past seven years. In two of those years it was the leader in This new Plan will not only help us strengthen our commitment to sustainable development in its sector. We would underline that the sustainable development, but also to meet the present and future companies which compose the Dow Jones Sustainability Index must challenges facing our industry, above all in the fight against climate demonstrate expertise in all aspects of sustainability. change. In our view, these challenges are an opportunity to create A second relevant item is the significant improvement in the report- value for society. ing of our sustainable development initiatives. Since the publication The following pages give detailed information on how we are go- of the first Sustainability Report, we have adjusted our practices to ing to meet these challenges and how we want to take advantage commonly accepted international sustainability standards. In particu- of these opportunities. I hope this report will help you to understand lar, this Sustainability Report has been drawn up in accordance with who we are, but more importantly, to understand who we wish to the Global Reporting Initiative’s (GRI) G3 Guidelines and conveys become. a precise, clear, reliable, balanced and benchmarked overview of ENDESA’s work towards ensuring sustainability. Moreover, an ex- ternal, independent company has verified ENDESA’s commitment to complying with the GRI indicators, AccountAbility principles and the Global Compact as well as our commitment to OECD principles and the United Nations’ Millennium Project. Rafael Miranda Robredo Thirdly, this Annual Report reflects how the company has been Chief Executive Officer able to meet the economic, environmental and social challenges posed by this global approach to sustainability. ENDESA’s mission is very clear: to provide value for the community through the provision of a basic, accessible, and quality service, with responsible stew- ardship of the natural resources deployed; to promote research and eco-efficiency; to take care of its shareholders’ interests; to encour- age professional and personal development in its employees; and to address the social needs of the communities in which the company operates. Our success in meeting these objectives has allowed us to take the next step, with the creation and implementation of our 2008-2012 Strategic Sustainability Plan, which is based on even more ambitious targets than those from the 2003-2007 Environment and Sustaina- ble Development Strategic Plan, which ended last year and in which 95% of the objectives were met. endesa07 6 SUSTAINABILITY REPORT ENDESA, ONE OF THE LARGEST ELECTRICITY COMPANIES IN THE WORLD 7 ENDESA, ONE OF THE LARGEST ELECTRICITY COMPANIES IN THE WORLD endesa07 8 SUSTAINABILITY REPORT 01. ENDESA IN NUMBERS EDESA, AN EFFICIENT, COMPETITIVE EBIT COMPANY WITH AN EXCELLENT ASSET BASE (Millions of Euro) 2003 2004 2005 2006 2007 Spain and Portugal 2,824 2,472 3,266 3,835 3,830 Latin America 1,484 1,522 1,878 2,188 2,534 One of Europe’s leading power companies and one of the biggest in the world Europe 384 535 887 1,116 1,121 Other businesses 58 (8) (11) — — No. 1 in the Spanish electricity sector and the leading Total 4,750 4,521 6,020 7,139 7,485 private electricity multinational in Latin America Profits after tax and minority (Millions of Euro) 2003 2004 2005 2006 2007 Strong presence in the Spanish natural gas market Spain and Portugal 1,207 888 1,358 1,843 1,785 Latin America 84 127 262 462 471 Leader in sustainability: CO2 management, MDL, renewable energy, clean combustion, RDI, person Europe 52 169 425 493 419 management, occupational health and safety, and Other businesses (31) 69 1,137 171 — involvement in society Total 1,312 1,253 3,182 2,969 2,675 Installed capacity (MW) 2003 2004 2005 2006 2007 Spain and Portugal 22,643 22,503 22,416 23,021 24,490 Present in 10 countries Latin America 13,333 14,053 14,095 14,317 14,707 Europe 5,860 9,294 9,397 9,775 9,990 Total 41,836 45,850 45,908 47,113 49,187 Installed capacity of 49 GW Output (GWh)* 2003 2004 2005 2006 2007 Spain and Portugal 93,734 95,679 93,625 88,808 91,058 184 TWh of output Latin America 46,480 55,106 57,890 62,028 59,512 Europe 17,867 25,053 33,749 35,575 33,396 Total 158,081 175,838 185,264 186,411 183,946 227 TWh of sales * Spain’s hydroelectric, thermal and nuclear output are measured at power plant bars. Sales (GWh) 2003 2004 2005 2006 2007 Spain and Portugal 92,996 96,731 100,868 109,412 113,375 23.5 million customers Regulated market 67,701 65,762 64,095 71,599 72,746 Deregulated market 25,295 30,969 36,773 37,813 40,629 Latin America 49,526 52,314 55,246 58,281 61,610 Europe 21,118 32,172 47,221 52,606 52,517 Total 163,640 181,217 203,335 220,299 227,502 ENDESA, ONE OF THE LARGEST ELECTRICITY COMPANIES IN THE WORLD 9 ENDESA IN LATIN AMERICA ENDESA IN SPAIN AND PORTUGAL Endesa, S.A. • Headquarters: Central America Ribera del Loira, 60 • Siepac Project (12.5%) To build a 1,800 km electricity 28042 Madrid link for 230 kV and 600 MW of Spain. capacity. Endesa Generación • Mining generation assets including Endesa Cogeneración and Renovables (EYCR). Endesa Red • Mining generation assets incl. ENDESA CCGT and renewables (EYCR). Colombia • Endesa Distribución Eléctrica S.L (regulated transport • Emgesa (48.48%) and distribution activities and sales at tariff). 2,829 MW • Endesa Operaciones y Servicios Comerciales S.L. • Codensa (48.48%) (sales support). 2.2 million customers • Fecsa Endesa (Catalonia). • Sevillana Endesa (Andalusia and Badajoz). • Gesa Endesa (Balearic Islands). • Unelco Endesa (Canary Islands). • Erz Endesa (Aragon). Endesa Energía • Sales activities on the deregulated market. • Supply of energy and added-value services. Peru • Also carries out sales tasks in Portugal, France, Italy, • Piura (60%) Germany and Belgium. 131 MW • Edegel (61.06%) Endesa Servicios Support services for ENDESA subsidiaries. 1,468 MW • Corporate purchasing • Edelnor (60%) • IT and telecoms services. 986,461 customers • Information systems. Brazil • Asset management. • Ampla (91.94%) • Goods and equipment control and supply services. Chile 2.4 million customers Coelce • General consulting and business management • Endesa Chile (59.98%) • (58.86%) 4,779 MW 2.7 million customers services. Endesa Fortaleza • Chilectra (99.08%) • (100%) 1.5 million customers 322 MW • Cachoeira Dourada (99.61%) 665 MW • CIEN (100%) (Argentina-Brasil link) 1,000 km Argentina 2,100 MW • Dock Sud (69.99%) 870 MW • Yacylec (22.2%) 282 km 507 kV • Costanera/CBA (69.77%) 2,324 MW • El Chocón (67.67%) 1,320 MW • Edesur (99.45%) 2.2 million customers endesa07 10 SUSTAINABILITY REPORT ENDESA IN EUROPE
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