Taxonomy

The application of EU taxonomy throughout our business activities facilitates sustainable investment and helps to accelerate decarbonisation.

European Union (EU) taxonomy provides a standardised, science-based classification system for identifying environmentally sustainable economic activities. It acts as an important facilitator to support sustainable investment and accelerates the decarbonisation of the European economy, while giving investors security and transparency and supporting companies in planning a roadmap toward net zero emissions.

At Endesa we are fully committed to reporting on the application of the European Union Taxonomy Regulation (article 8 of the regulation and subsequent delegated acts specifying to a greater extent the content, methodology and presentation of information to be disclosed by both non-financial and financial entities).

While the Taxonomy Regulation requires that companies declare compliance with the taxonomy from January 2022, we have already became pioneers in this area and beginning to report on its implementation on the 2021 Capital Market Day.

We also support the different taxonomy thresholds defined on the basis of climate and environmental science, as the overall life cycle intensity limit of 100 g of CO2eq/ kWh to measure the substantial contribution to climate change mitigation established for most power generation technologies, being derived from a robust and scientific analysis process.

However, there are activities which, while not necessarily qualifying for the EU taxonomy, are essential to promoting the well-being of Europeans, especially in the short and medium term, while contributing to the sustainable development of Europe in the long term.

 

 

Implementation process

We have deployed a five-step process to analyse the applicability of the EU taxonomy throughout the value chain, within the global Enel process. This process involved relevant functions at the corporate level and all lines of business. These five steps are:

Endesa's implementation process in stages.
Endesa's implementation process in stages.
Endesa's implementation process in stages.

Endesa's implementation process

Stage 1

Identification of eligible economic activities.

Stage 2

Substantial contribution analysis.

Stage 3

Assessment of non-significant damage.

Step 4

Due diligence of minimum social safeguards.

Step 5

Calculation of financial metrics.

Eligibility of Endesa's activities

Through the above process, we have classified all our economic activities along the value chain according to the following three categories: eligible-aligned, eligible-non-aligned, ineligible.

Gráfica que representa la elegibilidad de las actividades de Endesa.
Gráfica que representa la elegibilidad de las actividades de Endesa.
Graph representing the eligibility of Endesa's activities.

Eligibility of Endesa's activities

EU Taxonomy classification

Aligned

Non-aligned

Not eligible

 

Mapping according to the Delegated Act on Climate Change

Aligned

Not aligned

Not eligible

General results

In 2021, the degree of alignment of our economic activities with the EU taxonomy, as a result of our contribution to the objective of climate change mitigation without harm to other environmental objectives and respecting minimum social guarantees, was as follows:

Revenue

Total revenue: 20,9 € thousand million

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Medium Target Price € 33.333
Open Data Version

Breakdown of aligned eligible activities

Generation
14,6%
Distribution
44%
Commercialisation
41,1%

Fixed operating expenses (OPEX)

  • 38.8% of operating expenses were generated by eligible business activities aligned with the EU taxonomy, compared to 40.6% in 2020.
  • Excluding electricity sales with guarantees of origin, 38.4% of operating expenses was generated by eligible activities aligned with the EU taxonomy.

Total revenue: 0,4 € thousand million

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Medium Target Price € 33.333
Open Data Version

Breakdown of aligned eligible activities

Generation
37,5%
Distribution
61,9%
Commercialisation
2,4%

Gross Operating Income (EBITDA)

  • 64.3% of gross operating income was generated by eligible business activities aligned with the EU taxonomy, compared to 59.5% in 2020.
  • Excluding electricity sales with guarantees of origin, 62.6% of gross operating expenses were generated by eligible activities aligned with the EU taxonomy.

Total revenue: 4,3 € thousand million

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Medium Target Price € 33.333
Open Data Version

Breakdown of aligned eligible activities

Generation
28,4%
Distribution
67,1%
Commercialisation
4,5%

Investments (CAPEX)

  • 75.0% of capital expenses was generated by eligible business activities aligned with the EU taxonomy, compared to 70.1% in 2020.
  • Excluding electricity sales with guarantees of origin, 73.6% of capital expenses was generated by eligible activities aligned with the EU taxonomy.

Total revenue: 2,2 € thousand million

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Medium Target Price € 33.333
Open Data Version

Breakdown of aligned eligible activities

Generation
43,5%
Distribution
51,6%
Commercialisation
4,9%
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