Seeding Energies Sustainability Report 2017 pg. GETTING TO KNOW ENDESA pg. CORPORATE GOVERNANCE DATA 12 4 ER FFIC The ENDESA Board of Directors E O ECONOMIC DATA TIV CU XE E EBITDA Socially responsible F LIFE Members of the Board of Directors IE ON LAND (millions of euros) investment H by expertise C D 3,542 12.10% N D A E Finance and risk Management END F N OF PROVERTY IN Engineering Strategy Installed Electricity A I Legal capacity production M N G IR DECENT MW WORK 23,678 78.648GWh A AND P H R C IO 100% LIFE 100% Length of distribution E ON LAND R network lines H I T T I E 317,782km M CLIMATE ACTION S 27.3% O R F 100% 36.4% Number of customers S R 6 p 10,848 (thousand) E g 8 . T T E L SOCIAL DATA governance and good Business Environmental issues Social ENVIRONMENTAL issues issues O DATA Low-carbon business model U Employees R ENDESA production mix P Customer orientation E Total Men Women R F O Digitalisation Seeding Energies S 9,706 76.84% 23.16% Renewables and cogeneration E R I Involvement and inclusion T of our people Hydroelectric value M I Creation Combined cycle R of financial economic A Conventional thermal IO Employees by geographic area N R Thermal nuclear P C Customer orientation IC 4.38% E G Involvement 6.36% E of local T and inclusion Spain A . R communities g T p supply chain 4 99.6% S Sustainable S 8 33.63% R Growth A 15.07% Innovation L p through L 9 g I . P 6 low-carbon Portugal 78,648 GWh technologies IC Índice de frecuencia Operating S N and services A 0.4% efficiency B A and innovation Environmental L Sustainability P 40.57% Responsible relationship with the communities Y IT Good IL B Our people and their value governance A Digitalisation IN Emission-free Water returned Occupational A health and T Safety and health of employees and contractors production to the environment Environmental Sustainability safety S SU Free 44% 99% A Accident indices Sustainable supply chain ES 0.09 0.08 0.08 A D P EN PE ND 0.09% Biodiversity Re-used N A Severity index D GY 1.28 projects water ICE STRATE S pg. 1.01 25 0.023% 0.75 298 0.75% 2017 2016 2015 Frequency index pg. GETTING TO KNOW ENDESA pg. CORPORATE GOVERNANCE DATA 12 4 ER FFIC The ENDESA Board of Directors E O ECONOMIC DATA TIV CU XE E EBITDA Socially responsible F LIFE Members of the Board of Directors IE ON LAND (millions of euros) investment H by expertise C D 3,542 12.10% N D A E Finance and risk Management END F N OF PROVERTY IN Engineering Strategy Installed Electricity A I Legal capacity production M N G IR DECENT MW WORK 23,678 78.648GWh A AND P H R C IO 100% LIFE 100% Length of distribution E ON LAND R network lines H I T T I E 317,782km M CLIMATE ACTION S 27.3% O R F 100% 36.4% Number of customers S R 6 p 10,848 (thousand) E g 8 . T T E L SOCIAL DATA governance and good Business Environmental issues Social ENVIRONMENTAL issues issues O DATA Low-carbon business model U Employees R ENDESA production mix P Customer orientation E Total Men Women R F O Digitalisation Seeding Energies S 9,706 76.84% 23.16% Renewables and cogeneration E R I Involvement and inclusion T of our people Hydroelectric value M I Creation Combined cycle R of financial economic A Conventional thermal IO Employees by geographic area N R Thermal nuclear P C Customer orientation IC 4.38% E G Involvement 6.36% E of local T and inclusion Spain A . R communities g T p supply chain 4 99.6% S Sustainable S 8 33.63% R Growth A 15.07% Innovation L p through L 9 g I . P 6 low-carbon Portugal 78,648 GWh technologies IC Índice de frecuencia Operating S N and services A 0.4% efficiency B A and innovation Environmental L Sustainability P 40.57% Responsible relationship with the communities Y IT Good IL B Our people and their value governance A Digitalisation IN Emission-free Water returned Occupational A health and T Safety and health of employees and contractors production to the environment Environmental Sustainability safety S SU Free 44% 99% A Accident indices Sustainable supply chain ES 0.09 0.08 0.08 A D P EN PE ND 0.09% Biodiversity Re-used N A Severity index D GY 1.28 projects water ICE STRATE S pg. 1.01 25 0.023% 0.75 298 0.75% 2017 2016 2015 Frequency index Letter from the 102-14 Once again this year, I am pleased to pres- Chairman ent the ENDESA Sustainability Report. This is the seventeenth report that the company has published, in strict compli- ance with our commitment to transparen- cy in the areas of economic, social, envi- ronmental and ethical responsibility. At ENDESA, we realised some time ago that in order to ensure maximum medium and long-term profitability for our shareholders, it is essential to in- tegrate those social, environmental and ethical aspects into our business strategy in such a way that they be- come the basis upon which we carry out our activities. Two relevant events that took place in Spain last year have, once again, reinforced this vision and ENDESA’s firm commitment to sus- tainability. In the month of August, the 4 2017 Annual Report National Companies and Human Rights is maintaining a position of leadership in able Development Goals, particularly Plan was approved, which transfers the this field. Furthermore, in 2017, the com- the following: framework of the United Nations Guid- pany has published the non-financial > SDG 13. Climate action: ENDESA ing Principles for Companies and Hu- information and diversity statement for has taken on the commitment of at- man Rights to Spain, providing clarity the first time, including it in the appen- taining 100% decarbonisation of its on the role that the State and compa- dix to its Management Report, thereby energy mix by 2050, setting interim nies must play in protecting, respect- maintaining the same procedures for goals for 2030 and 2040. Noteworthy ing and potentially remedying these approving, submitting and publishing in 2017 is the award of 879 MW in the Rights. In November, the Spanish Roy- this Report. renewable energy auctions carried al Decree-Law was approved, which Additionally, ENDESA has reiterated out in Spain, and the fact that 44% of transposes the European Directive on its commitment to the main national ENDESA’s electricity production was non-financial information and diversity and international sustainability initi- free of CO2. to Spain, imposing the legal obligation atives, and has renewed its commit- > SDG 9. Industry, innovation and in- that companies of a certain profile in- ment to the ten United Nations Glob- frastructure: ENDESA has undertak- clude non-financial information and al Compact principles, an initiative in en to invest 1.4 billion euros to fulfil diversity figures in their management which it has always been extensively an essential role in the construction reports. involved both globally and locally as a of the future of energy via digitalisa- As such, in 2017 a Human Rights due dil- member of the Executive Committee tion and new value-added products igence process was completed, which of the Spanish Network of the Global and services (e-solutions). In 2017, continued the Human rights policy that Compact. Moreover, in 2017, it contin- ENDESA invested 300 million euros the company’s Board of Directors put in ued its efforts to achieve the commit- in this area. place in 2013, confirming that ENDESA ments taken on in terms of Sustain- Sustainability Report 5 > SDG 7. Accessible and non-pollut- in its business vision, thereby demon- ciliation, diversity and health and safety ing energy: ENDESA has taken on strating its endeavour to develop a sus- is our top priority. the commitment to ensure that all tainable business model that seeks to The safety of both our own staff and the of its vulnerable customers in Spain create shared value and that generates companies with which we work is our have access to electricity. Throughout maximum returns for shareholders, as number one goal. As a result, we con- 2017, the company signed 229 agree- well as promoting a positive impact on stantly and relentlessly strive to reduce ments with Public Administrations to the social environments in which it op- the accident rate. Thus, maintaining a prevent vulnerable customers from erates. decidedly downward trend in frequency having their electricity supply cut off. ENDESA is intent on playing a funda- rates has been achieved, reaching very Now, these agreements are being re- mental role in transforming the current low levels in recent years. Despite this, viewed in order to adapt them to Roy- energy model to a sustainable model, when looking back on our results, we al Decree 897/2017, which regulates based on the electrification of demand, must remember with great sadness the the figure of the vulnerable consum- with electricity generated from renew- fatal accident of an ENDESA employ- er, the rates subsidy and other meas- able and non-polluting sources, and in ee, Mr Luis Polo, which took place in ures for protecting domestic electrici- which the consumer plays a leading role. December 2017, due to an unfortunate ty consumers.