| ENDESA’S COMMITMENTS |
AREAS OF ACTION |
2008 TARGETS |
KEY MILESTONES |
| Commitment to service quality |
Capacity and quality programmes to achieve excellence in sales processes. |
Progress with the Loss Control Programme (Energy Efficiency Programme). |
Development of distribution infrastructure: Euro 1,372 million invested and distribution lines extended by 1,155 km in Spain and Portugal. |
| In 2008, TIEPI (interruption index) in the markets supplied by ENDESA in Spain reflected the best quality of supply level achieved on record, at 86 minutes; an improvement of 7% on 2007. |
| Develop a public-awareness strategy in all countries where the company operates to foster rational energy use |
Information for customers to promote efficient energy use: welcome pack, advice and dissemination of energy saving measures via the technical advisory committee, bills and leaflets. |
| Sale of efficient products. |
| After-sales services |
Take on board any opportunities for improvement identified while rendering services to customers |
ENDESA Energía’s Customer Service Excellence Plan focuses on the continuous improvement of those processes most relevant to customers: contracting, complaints, after-sales service. |
| Excellence in the corporate website: The website has double A accessibility according to W3C/WA I international standard WCAG 1.0. |
| Inclusion of the customer’s voice in Colombia for the corporate quality management system. |
| ENDESA scored more than 7.77 in all categories assessed by customers. In Spain, ENDESA carried out a total of 49,000 telephone interviews with customers and over 1,200 audits at sales offices and service points. |
| Suppliers and contractors form part of our commitment to customers |
Build an image of effectiveness, proximity and credibility in technical services |
ENDESA’s CIDE projects, which take the form of forum events in which the company participates with its key suppliers, progressed further in 2008 under the coordination of Endesa Network Factory (ENF). To date, 29 innovation initiatives have been developed through these forums. |
| Commitment to creating value and returns |
Strengthening communication to analysts and investors regarding sustainability, climate change and renewable energies. |
Value creation within a framework of transparency. |
23.7% average annual return for the shareholder in 2005-2008. |
| ENDESA has secured a place in the Dow Jones Sustainability Index for the eighth year running. Furthermore, the company cemented its position in the Storebrand Investment and Pacific Sustainability Index. |
| Increasing communications on renewable energies through Investor Relations. |
Meetings held with investors and analysts. |
4,500 phone calls and 260 visits. |
| Promoting learning and disseminating knowledge. |
Sustainability day held for ENDESA employees. |
| Strengthening the commitment to sustainability in the investor relations space on ENDESA’s website. |
Greater commitment to sustainable development. |
Meetings held with socially responsible investors. |
| More than 10 questionnaires on sustainability carried out. |
| Strengthening communications to analysts and investors regarding the focus and outlook of commitments to climate change. |
Incorporation of the renewables newco. |
The changes in the composition of ENDESA’s shareholder structure have led to the reassessment of this goal. |
| New business plans to deal with climate change and new CO2 reduction targets: -50% in 2008-2020. |
Incorporation of strategic targets relating to climate change in ENDESA’s Sustainability Plan 2008-2012 to meet the new challenges assumed in the period. |
| Reduction of almost 50% in CO2 emissions compared to 1990. |
| Commitment to the health, safety, and personal and professional development of persons working at ENDESA |
Systems to attract, develop and retain talent. |
Expansion of the performance management system to Chile, Brazil, Argentina and the company CAM . |
The performance management system has been extended to Chile, Brazil, Argentina and CAM , affecting a total of 5,684 people worldwide, more than 22% of ENDESA’s employees. |
| Development of a new policy to attract and retain talent within the framework of ENDESA’s HR sustainability programme. |
| Start of a process to identify and validate strategic talent. |
| Employee satisfaction and commitment |
Implementation and analysis of results of the working climate survey |
In the first half of 2008 presentations were made to the different businesses, business lines and company management committees in all areas, describing the overall and specific results of the working climate and commitment survey. As a result, several areas for improvement were identified. |
| At the end of 2008 the Perceived Quality survey was carried out for management and employee self-service in Colombia and Peru. The overall level of employee and management satisfaction was 3.5 out of 5. |
| Two-way dialogue with employees and employee representatives. |
Improvements in social dialogue |
In 2008, ENDESA drew up a social dialogue policy. This policy helps to consolidate achievements in its Labour Relations model and encompasses the five principles applied in collective agreements: legality, equality, trust and good faith, freedom of association and consensus. |
| 21 new collective agreements are signed, including ENDESA’s 3rd framework collective agreement in Spain. |
| Implementation of the potential evaluation committees model. |
23 potential evaluation committee meetings held overall, with the aim of providing training for management committee members entrusted with the role of evaluating and validating decisions. |
| Certification as a family-friendly company extended to the entire company. |
ENDESA obtained accreditation as a Family Responsible Employer from Fundación + Familia in the IFREI study (IESE Family Responsible Employer Index) for striking a healthy work-life balance. |
| Initiatives to promote a preventive culture |
Promoting awareness and preventive training. |
3rd corporate meeting on Workplace Health and Safety and 2nd edition of the Apolo awards. |
| More than 40% decrease in the accident rate and accident severity rate compared to 2007. |
| Globalisation of management model for occupational health and safety |
Increased scope of the DELFOS information system. |
ENDESA has extended the same working conditions in OHS for all people who work for the company, whether they are ENDESA’s own employees or workers employed by its associates. |
| The implementation of the Delfos System, initiated in Spain and Colombia in 2007, has been gradually rolled out in Peru and Brazil and is expected to be implemented in Chile and Argentina in 2009. |
| Commitments in the area of diversity and work-life balance |
Roll-out of an on-line platform for training personnel managers in skills relating to diversity and work-life balance. |
Start up of training initiatives in the areas of diversity and work-life balance directed at personnel managers, project heads in corporate areas or staff with responsibilities in different group companies/ countries located in Spain. |
| Following the approval of the Corporate Diversity Management Policy, in 2008 the pertinent action plan was rolled out. Highlights include the creation of ENDESA’s Diversity Strategy Committee, responsible for defining strategic priorities, setting global objectives, designing corporate programmes and projects, giving support to the plans and programmes specific to each business and measuring the impact in all areas using ENDESA’s Global Diversity Balanced Scoreboard, originally created to monitor the main indicators relating to diversity management and equal opportunities. |
| Commitment to good governance and ethical behaviour |
Strengthening processes and practices to ensure transparency of information. |
Further implementation of systematic measures to ensure compliance with Global Compact principles. |
Actions to ensure compliance with UN Global Company principles, GRI indicators and Millennium Goals:
- Review, development and publication of anticorruption policies.
- D evelopment of additional ethics channels on the website and improved access to these channels.
- Training for employees and contractors on ethical conduct.
- Strengthening ethics committees, increasing the frequency of their meetings and publishing the results of these meetings.
- Creation of internal control areas to support the anti-corruption programme, among other functions.
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| Obtaining the highest (A) rating awarded by the Fundación de Estudios Financieros (FEF), in the fifth edition of the study “Observatory of Corporate Governance and Transparency of Information of Companies Listed on the Spanish Stock Market 2008”. |
| Strengthening and expanding the internal regulations and processes governing corporate integrity. |
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In 2008 ENDESA approved new regulations for the procurement of goods, works and services. This regulation is applicable to the entire group and represents an adaptation to the new commitments taken on by ENDESA (Law 31/2007, CSR principles and the Global Compact). |
| Commitment to environmental protection |
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Approval and implementation of the Sustainability Strategic Plan 2008-2012. |
In 2008, the plan and its projects were defined and development initiated. This plan includes the environmental targets specified in the 2007 Sustainability Report and extends the deadline for implementation to 2012. |
| Development of systems to identify, evaluate, manage and control environmental risks and contingencies. |
Detailed assessment of environmental risk. |
ENDESA categorises its facilities, makes detailed assessments of environmental risk and is promoting a new programme for managing environmental risks deemed critical as well as eliminating environmental contingencies. |
| Strengthening initial evaluation systems for projects to ensure their legitimacy and credibility in the face of public opinion. |
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25 environmental studies, including ozone studies, atmospheric and spillage models, in addition to mandatory environmental impact studies and applications for integrated environmental permits required by law and in accordance with market regulations in the areas in which the company operates. |
| Strengthening integrated water management at all business stages. |
Efficiency and integrated management. |
In 2008 additional actions to improve efficiency in consumption, water quality and the integrated environmental management of large reservoirs were implemented. |
| Strengthening the management systems for emissions regulations. |
Contributing to the development of a new global and sustainable energy model, in accordance with the basic lines of the company’s strategic plan. |
Aligning the company’s strategy via the climate change programme based on five main strategic projects: renewable energies, new technological developments which reduce CO2 emissions, opportunities in energy efficiency and cogeneration, a sustainable transmission model and a CDM portfolio. |
| Accreditation obtained for 91.4% of the energy produced. |
| Progress towards achieving global accreditation for the company’s integrated management systems. |
ISO 14001 accreditation for the remaining distribution territories. |
100% of the power distributed by ENDESA in Spain and Latin America obtains accreditation under ISO 14001. |
| Defining and strengthening the company’s commitments and programmes in the area of biodiversity conservation. |
Continuation of biodiversity conservation programmes. |
The new Sustainability Strategic Plan 2008-2012 established work programmes to continue to work towards the target of integrating biodiversity conservation into the company's operations and promoting an internal culture of biodiversity conservation. |
| ENDESA maintains collaboration agreements with different institutions to carry out research and studies into biodiversity conservation and the preservation of cultural heritage. |
| In 2008, the regeneration of the areas surrounding ENDESA’s mining installations increased significantly, due to the new initiatives rolled out as part of the PES framework (2008-2012), with more than 338 hectares of land restored. |
| 2008 AEDM E award for “the recovery of the ecosystem adjoining the Colombian thermal plant of Cartagena, consisting of a lake and a mangrove swamp”. |
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Incorporation of a new company, the renewables newco, to encompass all ENDESA’s renewable energy assets in 2008. |
The changes in composition of ENDESA’s shareholder structure have led to the reassessment of this goal. |
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Development of the 2008-2012 Environment Plan |
In 2008, the 2008-2012 Environment Plan was drawn up, in response to the need to plan, implement and meet the environmental strategic objectives defined in Endes a's 2008-2012 Sustainability Plan. |
| Commitment to efficiency |
Bolstering ENDESA’s position as leader and benchmark in the field of Innovation and Technology. |
Continue to improve the quality, efficiency and sustainability of customer services. |
Direct investment of Euro 8 million in technological projects for distribution networks. |
| Speed up improvements in costs, quality and services in the distribution business. |
Development of technological projects on advanced networks: “Knowledge is Power-KIP” project; Telegestión (remote management) project. |
| Development of a leadership culture in innovation and technology using training tools and programmes applied internally and externally. |
Improve the company’s global status, given the growing challenges facing sustainability. |
ENDESA has promoted the creation of the International Utilities Alliance (IUA), an alliance created by European utility companies ENEL, EDF, EDP and RWE, all of which are at the vanguard of technology in their respective countries, as an expansion of the Endesa Innovation Circles (CIDE). |
| Help raise ENDESA’s value. |
Founding member of the Spanish Platform of Electricity Networks (FUTURED). |
| Presides over the Spanish Technological Platform for Energy Efficiency (PTE-EE). |
| Attendance of technology conferences, forums and training schools: ENDESA Energía, Master’s degree ENDESA-ICAI. |
| Development of tools to maintain a portfolio of R+D projects. |
Spearheading new developments in technology that lead to a response to the challenges posed by climate change, with reduced CO2 emissions and more cuttingedge technology. |
Collaboration on and development of projects for technological improvement and optimisation of natural resources such as:
- Storage of CO2
- CIUDEN project.
- Novare Biohydrogen.
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| Make progress on the CENIT Denise project to establish the framework for an intelligent, safe and efficient electricity distribution grid. |
Completion of the second year of the CENIT Denise project. |
| Carry out audits at ENDESA work centres to analyse and promote eco-efficient practices. |
Two energy efficiency audits performed at ENDESA's headquarters in Spain and Chile. |
| Further study the scope for developing electric vehicles and potential synergies deriving from their connection to the grid. |
The company has joined the work group created by the Ministry for Industry and Tourism to analyse and expedite the introduction of electric vehicles in Spain. |
| Collaboration with public entities and transport departments with a view to stimulating the spread of this technology. ENDESA forms part of the European G4V consortium to integrate electric vehicles into distribution networks. |
| The electric vehicle Working Package designed for the Smart City project proposal. |
| Participation in the development of pilot houses, neighbourhoods and cities for real eco-efficiency models |
Sustainable urban planning projects: MA SH (Malaga Smart House) project and project for Eco-Digital Public Lighting. |
| Commitment to the development of the societies in which we operate |
Strengthening the company’s ability to respond to local energy needs. |
Continue the rollout of the Corporate Volunteer Programme giving employees a strategic and operational framework in which to exercise their solidarity. |
Among others, several volunteer projects initiated in previous years were continued (“ENDESA Solidarios” (Spain)) and new projects were also embarked on such as the “Edelnor Corporate Volunteer Programme”, offering support to the community in the Puente Piedra and Pariñas districts. |
| Promotion of ENDESA’s position as a key partner in projects which help resolve the challenges of sustainable energy and social development. |
Development of the basic aspects for the economic-social advancement of the community in general and, more specifically, its most vulnerable groups. |
Especially significant are the rural electrification programmes, through which ENDESA not only facilitates access to rural communities and underprivileged areas lacking electricity but also improves the power network and addresses other problems relating to the power supply. The Codensa Hogar (Codensa Home) programme finances home appliances and home improvements through the Codensa Crédito Fácil (Easy Credit Facility). Bills issued in Braille for Chilectra customers. |
| Bolstering messages of closeness and their authenticity. |
Continue to achieve a positive impact and promote the Millennium Development Goals (MDG s). |
Prize awarded to the Ecoelce project by the UN in the World Business and Development Awards, the first awards to recognise the role played by private companies in meeting the Millennium Development Goals. The Ecoelce project involves exchanging refuse for energy for low-income inhabitants of the state of Ceará, the region in which Coelce distributes power. This encourages recycling in exchange for discounts on electricity. |
| Among other actions, as part of Edelnor's Corporate Volunteer Programme (Peru) employees gave their time and money to help build and open the Fe y Alegría school in San Clemente. |
| Collaboration with the education community. |
| Development of awareness programme on the natural environment, the recovery of natural species, and the protection of endangered animals or plants, in addition to the sponsorship of environmental forums and congresses. |
| Stepping up contact with local businesses, transmitting a unified image of the company. |
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Contribution to social development via direct investment in local initiatives, enabling employees to dedicate more time and interest to corporate volunteer programmes, and a wide range of collaboration initiatives with groups, entities, organisations and institutional representatives in the communities in which its installations are located and where it conducts its commercial and industrial activities. |
