Case study: How ENDESA creates economic value for its stakeholders
ENDESA is the leading company in the Spanish electricity sector and the second-biggest operator in the electricity market in Portugal, serving more than 10 million customers. Creating sustainable value shared with all its stakeholders throughout its value chain, is a top priority for ENDESA.
This case study is based on the 2021 Statement of Non-Financial Information and Sustainability by ENDESA, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
ENDESA seeks to generate shared value for all its stakeholders Tweet This!, while spreading its sustainability principles and commitments throughout its value chain. In order to create economic value for its stakeholders ENDESA took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) ENDESA has identified;
- How ENDESA proceeded with stakeholder engagement, and
- What actions were taken by ENDESA to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Statement of Non-Financial Information and Sustainability ENDESA identified a range of material issues, such as good governance and ethical corporate conduct, decarbonisation of the energy mix, occupational health and safety, preservation of ecosystems and environmental management. Among these, creating economic value for its stakeholders stands out as a key material issue for ENDESA.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups ENDESA engages with:
To identify and prioritise material topics ENDESA engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Business community | · Direct contacts · Meetings and working groups · Forums and conferences |
| Civil society and local communities | · Direct contacts · Working groups · Forums and conferences · Website channel · Web and Twenergy · Social networks · Ethics channel · Sustainability mailbox |
| Customers
| · Sales offices · Sales managers · Website channel · Customer service centres · Forums and working groups · Mobile App · Social networks |
| Financial community
| · CNMV · Corporate website · Investor relations department, roadshows, quarterly results, presentations and strategic plan · Shareholders’ office · General shareholders’ meeting · Communications with proxy advisors |
| Institutions | · Direct contacts · Forums and conferences · Working groups |
| The media | · Direct contacts · Press conferences · Forums and conferences · Social networks |
| ENDESA’s people | · Intranet and internal social network · Forums and working groups · Knowledge interviews · Breakfasts with the CEO · Contact mailboxes · Corporate magazine and newsletters |
| Suppliers and contractors
| · Direct contacts · Web · Committees · Forums and conferences · Working groups |
What actions were taken by ENDESA to create economic value for its stakeholders?
In its 2021 Statement of Non-Financial Information and Sustainability ENDESA reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, ENDESA paid €916 million in personnel expenses.
- Creating economic value for shareholders
- In 2021, ENDESA paid €1,522 million in dividends.
- Creating economic value for the state
- In 2021, ENDESA paid €1,147 million in taxes and levies.
- Creating economic value for society
- In 2021, ENDESA invested €14million in social projects.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by ENDESA, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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