Fighting climate change, biodiversity protection, and value creation: Key pillars of Endesa’s 2025–2027 sustainability plan

• Endesa has updated its sustainability plan, publicly outlining its objectives and progress across four key pillars: environmental, social, governance, and growth accelerators.
• The plan is updated annually and approved by the board of directors. Its 65 measures are aligned with Endesa’s strategy to combat climate change and its ambition to become a zero-emissions company by 2040.
• To achieve this, the plan sets interim goals, including a 32% increase in renewable capacity by 2027 compared to 2024, as well as the goal of no net biodiversity loss in new projects starting in 2025.

Endesa reaffirms its commitment to sustainability as a long-term value creation tool with the approval of the 2025–2027 sustainability plan by its board of directors. The plan was developed together with all business areas and will be monitored and evaluated by the sustainability and corporate governance committee, a delegated committee of the board.

Regarding the plan, María Malaxechevarría, Endesa’s General Director of Endesa Foundation and Sustainability at Endesa, stated: ‘All measures are aligned with the company’s strategy: to contribute to the fight against climate change through leadership in a fair energy transition, sustainable development, biodiversity conservation, and value creation for all of society —from shareholders and investors to the regions where we operate and our own employees.’

The document begins with the identification and analysis of global ESG trends, including: adaptation to climate change, geopolitical uncertainty and polarisation, changing regulatory frameworks, the condition of natural ecosystems and biodiversity, supply chains and human rights, ESG scepticism as a barrier to sustainable financing, and AI and technological advances.

The plan’s objectives are based on a double materiality analysis as required by the EU’s Corporate Sustainability Reporting Directive (CSRD) and take into account investor expectations and sustainability indices. This is a comprehensive plan designed to ensure excellence in sustainable management and to reinforce Endesa’s leadership in a fair energy transition.

The measures are categorised under four key pillars: environmental, social, governance, and growth accelerators.

Environmental: This area includes most of the plan’s measures and focuses on promoting environmental and social sustainability. This reaffirms Endesa’s commitments to combat climate change and conserve biodiversity.

The plan upholds the net-zero emissions target for 2040 as part of its decarbonisation efforts, in line with the Paris Agreement goal of limiting global temperature rise to 1.5°C above pre-industrial levels.

The strategy outlines a 32% boost in renewable capacity by 2027 (vs. 2024). It also aims for no net biodiversity loss in new projects starting in 2025, progressing toward 100% by 2030. Additionally, it sets goals for reducing pollutant emissions and waste, as well as improving water and energy efficiency.

Social: This section addresses our stakeholders’ needs and priorities to ensure a fair and inclusive energy transition for all: employees, communities, suppliers, and customers.

Highlights include reaching at least 310,000 beneficiaries through shared-value projects focused on socioeconomic growth, education, and energy access. We also aim to extend our sustainability commitment to suppliers, with 100% of contractors evaluated for sustainability in the certification process. Furthermore, the plan outlines specific goals for increasing the number of women in leadership roles, promoting the inclusion of vulnerable groups, fostering employee training, and ensuring health and safety as key priorities.

Governance: Endesa’s business model is built on a robust governance framework, ensuring the implementation of core principles for transparency, integrity, and respect for human rights. Key objectives set forth in the document include full adherence to the 2024-2026 Human Rights Action Plan and an independent third-party evaluation supporting the board of directors.

The plan further establishes diversity targets for the board’s composition, requiring at least 40% female representation —a milestone already achieved in 2024.

Growth accelerators: Cybersecurity, digitalisation, and sustainable financing accelerate the achievement of Endesa’s sustainable strategy, boosting all the strategic themes with a cross-cutting approach.

To achieve this, key actions include a €1.6 billion investment between 2025–2027 to enhance quality, resilience, and digitalisation of distribution assets. It also commits to at least 50 annual cyber drills to manage and reduce cyber risks.