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- The energy company is linking its down payment invoicing operations through financial entities (confirming) with sustainability criteria, by offering a discount to suppliers who demonstrate good environmental practices.
- Endesa has introduced sustainability criteria into two confirming lines, one with Santander, worth 170 million euros, and the other with BBVA, worth 159 million euros. These are the first sustainable confirming lines for Endesa and for the entire energy sector in Spain.
- A full 45% of the electricity company's gross debt will be linked to sustainability objectives by the end of 2020. The 2021-2023 strategic plan sets out to increase this percentage to 60% by the end of the period.
Endesa has taken another significant step by linking its financial operations to the sustainability objectives that underpin the operations of the company as a whole. The company has recently finalised two agreements with Santander and BBVA, for a total of 329 million euros, to introduce sustainability criteria into its supplier down payment invoice payment operations (confirming) through these two banks.
These are the first confirming lines linked to sustainability criteria formalised by Endesa, and also the first for Spain's energy sector. They promote Endesa's commitment to sustainable objectives among the financial entities with which it works and its suppliers.
In particular, the electricity company will include in this new confirming operation contracts with suppliers that prove they hold an ISO 14001 environmental management certificate. This is the international standard that allows companies to demonstrate their commitment to protecting the environment through the management of environmental risks associated with their particular activity.
Endesa's aim is, therefore, twofold. On the one hand, to promote its commitment to the sustainability of its suppliers; and, on the other, to make financial institutions partners in this commitment, so that they offer better terms to suppliers that demonstrate the best environmental management practices.
Endesa has already identified more than 1,300 contracts with 321 suppliers that hold an ISO 14001 environmental management certificate. These contracts total approximately 1,040 million euros. This certificate is the sustainability criterion with which the greatest number of suppliers already comply, and it accounts for the greatest volume from contracts with the company.
This confirming agreement with Santander and BBVA joins other financial operations linked to its sustainable indicators (KPIs) carried out by Endesa throughout this year, such as December's sustainable guarantees, already mentioned above. Among them is the first corporate European promissory note arrangement (Euro Commercial Paper) linked to the Sustainable Development Goals up to a maximum amount of €4 billion, registered in Spain and supervised by the CNMV.
It has also finalised syndicated transactions worth €550 million in order to strengthen its financial situation whose terms are also linked to sustainability objectives. It has also recently formalised its first sustainable guarantee lines for 630 million euros.
Overall, by the end of 2020, Endesa aims to have 45% of all its gross debt linked to sustainability objectives. The company’s 2021-2023 strategic plan elaborates on this strategy and sets a target of increasing this percentage to 60% by the end of the period.
About Endesa
Endesa is the leading electricity company in Spain and the second largest in Portugal. It is also the second largest gas operator in the Spanish market. It is an integrated business operation that encompasses everything from generation to marketing, and through Endesa X it provides added value services aimed at decarbonising the energy used in homes, companies, industries and government agencies. Endesa is firmly committed to the United Nations SDGs and as a result decisively promotes the development of renewable energies through Enel Green Power Spain, the electrification of the economy and Corporate Social Responsibility. We also work in the latter area through the Endesa Foundation. We have around 10,000 employees. Endesa is part of Enel, the largest electricity group in Europe.