ENDESA S A : Sustainability Plan 2021-2023

2021-2023 ENDESA Sustainability Plan

Macrotrends emerging over the next decade

Potential "wild card" Disruptions

3

Contents

Sustainable business model

Materiality analysis

2021-2023 Sustainability Plan

2020 Sustainability Plan Results

4

Sustainable business model

5

A fully sustainable business model reflected in SDGs impact

6

Progressing towards full decarbonization in 2050

7

• (1) Scope 1, direct emissions

• (2) Scope 3, non direct emission (gas sales and others)

Sustainable finance

Strategic actions

First listed sustainable finance corporate

ECP Program in Europe

Growing relevance of sustainability linked instruments

Expanding sustainability approach to other short term and working capital instruments

Strategy alignment and active role in promoting sustainability

8

ENDESA improves in the main sustainability indexes in 2020

LEADERSHIP IN THE MAIN INDEXES

AA  Rating

 Score increase vs the previous year

 Score decrease vs the previous year

Materiality analysis

Stakeholders analysed

Analysis performed

Trend analysis

Investor analysis

Benchmark

1

Review in reference sources of the main business or sustainable circumstances with possible current or future effect on the activities (World Economic

company's

2

Online interviews with 5 representatives of different investment groups (Cygnus, Renta4,

Allianz

Popular, JP Morgan and

3

Review of the assigned relevance andthe degree of maturity in the management of the main competitors:

• • Iberdrola

• • Acciona

  4

  Analysis of Media and Social Networks

  Analysis of publications about the company in reference media and

  entities. Company Reports in digital

  Forum, International Energy Agency, World Business Council for Sustainable Development)

  Covalis).

  • • Repsol

• • EDP

media, web and social networks.

• • Naturgy

External survey

Employee survey

External interviewsInterviews with managers

5

Telephone surveys conducted to 459 customers (299 customers from Endesa Energía and 160 from Endesa X)

6

Online survey with 239 Endesa employees (Spain and Portugal) Online survey with 74 suppliers

(Itemization by business line)

7

Online interviews with external stakeholders: 10 representatives from civil society and local communities as as 8 from the business community.

well

8

17 in-depth interviews with Endesa CEOs

Review of other studies

Institutional analysis

Sustainability Indexes

9

Review of studies carried out for another purpose, but incorporating issues related to the company's sustainability:

• • Climate Survey

  10

  Analysis of public information and governmental programs to know the importance attached to each of the

  1Analy1sis of sustainability company and

  the most relevant indexes for the other RSI analysts:

  material issues. Review of public

• • Customer Satisfaction Survey

  information from the CNMC and OMIE.

  MSCI, Vigeo, Sustainalytics, FTSE4GOOD, DJSI.

• • Reputation Diagnosis 2019 - MERCO

Materiality matrix

The presented Materiality Matrix structures material matters based on the expectations of Stakeholders level I and the Company's internally strategic vision.

PriorityfortheCompany

Priority for Stakeholders

Scale change in the graph axes. Material topics are prioritized from 1 to 5.

Most relevant issues	Stakeholders Imp.	Company Imp.
Decarbonization of the energy mix	3.57	4.28
Economic and financial value creation	3.38	4.00
Customer engagement	3.19	4.14

12

Executive resume

Areas of action to guarantee ENDESA's sustainability: Satisfaction matrix

Asuntos prioritarios	Priority	Satisfaction
Decarbonization of the energy mix	3.57	3.66
Economic and financial value creation	3.38	3.80
Customer engagement	3.19	3.61

Asuntos relevantes	Priority	Satisfaction
Occupational health and safety	3.48	3.92
Innovation and digital trasformation	3.26	3.91
Energy distribution	3.29	3.73
Engaging the local communities	3.28	3.44
Ecosystems and platforms	3.15	3.71
Sound governance and fair corporate conduct	3.22	3.69
Employees management, development and motivation	3.29	3.46
Environmental management	3.44	3.79
Sustainable supply chain	3.47	3.62

2021-2023 Sustainability Plan

Targets 2021-2023

Estructure Endesa Sust. Plan 2021-2023

Endesa Sustainability Plan

Specific GHG emissions of Scope 1 (gCO2eq/kWh) UPG	439 <200 <150 <95 2017 2020 2023 2030
RADE

CO2-free production UPG	% CO2-free production1 ~ 60% ~75% ~ 80% 100% 44% 2017 2020 2023 2030 2050
RADE

Installed renewable capacity2 UPG	11,593 MW at the end of the 2021-2023 period
RADE

Production from renewable sources3 (TWh) UPG	13.9 15.9 21.0 2021 2022 2023
RADE

• 1. Estimate considering the total production measured in power plant bars

• 2. Cumulative gross installed capacity

• 3. Net production

• 4. Net capacity

2020	Category	SDG
183 70%	I E I E
7,825 13.4	I E I E

I E

45%

Storage capacity installation (Capacity increase in MW) UPGR	277 MW in the 2021-2023 period
ADE

• 1. Gross installed capacity

• 2. Includes thermal+renewable energy

Wind power: 94.2

2020	Category	SDG
11.2 18	I E I T
0 ind power: 94. ydraulic: 98.5%	I E I 2 E T

Hydraulic: 98.5%

100%

I E T

Reduction of electricity losses1 (% losses measured in substation bar)

Energy recovery

9.69%

9.59%

2021

2022

9.49%

2023

~ 2,900 GWh in the 2021-2023 period

• 1. System Operator Criteria

• 2. Own + programmed Installed Power Equivalent Interruption Time

2020	Category	SDG
9.85% 1,205	I E I E
60.3 12.4	I E S I E G

T

Technological update of the High Voltage remote control system (accumulated)

361 in 20211

Number of new producer connections (Accumulated number in the period) UP	14,079 4,727 9,393 ADE 2021 2022 2023
GR

Power of new producer connections (Accumulated MW in the period) UP	3,628 2,657 1,445 ADE 2021 2022 2023
GR

1.

The Project ends in 2021.

Investment in customer digitalization (€M invested)1

~ €M 180 in the 2021-2023 period

2020	Category	SDG
60.2 5.7	I E G T I S
4.4 29%	I S T I S

T

1.

It includes Endesa Energía + Endesa X

Promotion of the virtual assistant in Attention via CAT1 (% of interactions attended by the Virtual Assistant) U	12.0% 15.0 % 17.5 % DE 2021 2022 2023
PGRA

Quality: Improved Global Customer SatisfactionDigital, innovative and inclusive service for customer service (% of dissemination of the Pedius service)

NEW

Number of e-Bus charging points

• 1. CAT = Telephone Attention Channel

• 2. Estimated closing 2020.

7.45

7.45

2021

2022

7.50

2023

100% of dissemination of the Pedius service in the 2021-2023 period

NEW

115 charging points in 2023

I e G T

122

Diversity and inclusion

Increase the presence of women in positions of responsibility (% women) UPGRA	Management positions (1) 20.0% 20.0% 20.5% 2021 2022 2023 Middle Management Positions: CGI + NC0 33.0% 33.3% 33.5% 2021 2022 2023 Middle Management Positions: CGI 28.8% 29.3% 29.8% NEW 2021 2022 2023
DE

Female students involved in initiatives of vocational guidance in STEM area

1.

Management positions: TOP 200 + managerial level + Local managers

> 1,500 women involved in the 2021-2023 period

2020	Category	SDG
19.7% 32.6%	S
27.8% 36%	S

32%

S

572

S

Satisfaction, performance and development

Promote the level of employee involvement and satisfaction - Climate Survey (% employees)1

Performance Appraisal (% employees)Number of people included in the knowledge transfer initiatives (mentoring, age and gender)

Travel safety: Extension of the e-Travel digital portal to add itinerary planning functions and authorizations

• 1. Biennial survey.

  Engagement

  Targets to2023

  Scope2

  100%

  100% of trips in the 2021-2023 period

  Scope

  100%

  Participation

  99%

  125

  2021

  135

  2022

  Feedback

  95%

  140

  2023

• 2. Eligible and accessible individuals who have worked in the Group for at least 3 months.

• 3. 2019 performance evaluation carried out in 2020.

100%

S

Disability. Launch of specific campaigns to integrate disability and make possible new cases emerge. (number of specific communications) U	DE 3 campaigns per year in the 2021-2023 period
GRA

Training

Promotion of training to employees (hours/employee) U	POrne-sseintecial Online DE 25.0 25.0 25.0 14.0 2021 25.0 26.0 2022 2023
GRA

Promote and plan reskilling and upskilling programs for employees affected by the energy transition (hours of training per year / person)

Continuous learning and entrepreneurship -

Dissemination of the "teach the teacher" approach

(number of courses taught by internal monitor)

150 hours in 2021 and 50 hours in the 2021-2023 period

75 courses per year in the 2021-2023 period

2020	Category	SDG
2	GS
Online: 30.1 On-site: 12.5	S

122

S

71

S

Promotion of services that favour the reconciliation of employees2 (No. services)

Training programs for new hirings (number of hours / employee)Number of employees participating in digital transformation training programs

Conciliation

Improvement of work areas in offices (No. employees benefited)

12 hours per employee per year in the 2021-2023 period

> 1,300 employees in the 2021-2023 period

1,965 employees in the 2021-2023 period1

70 services in 2023

Promotion of smartworking3 (No. employees) UPGR	5,800 employees in the 2021-2023 period
ADE

• 1. The project ends in 2022.

• 2. The data refers to the total number of services offered in all of Endesa's 7 headquarters, such as: financial advice, nutritionist, travel agency, vehicle rental, vehicle repair and cleaning, dry cleaning, restoration, changing room, breastfeeding, etc.

• 3. Accumulated employees with potential to adhere to smartworking.

6,180

S

Activity	2021-2023 Targets
Education (No. beneficiaries)	800,000 beneficiaries (2015-2030 period)1
Access to energy (No. beneficiaries)	4,100,000 beneficiaries (2015-2030 period)1
Socioeconomic development (No. beneficiaries)	UPGRADE	1,900,000 beneficiaries (2015-2030 period)1

People centricity - Global and local communities

2020	Category	SDG
~1.91 ~0.71	S G S G
~0.31 67	S G S G

The data consider the period 2015-2030 (accumulated), aligned with the Enel Group's public commitments to the United Nations Sustainable Development Goals. In addition, they consider the activities of ENDESA and its Foundation, specifically:

Access to energy: Includes projects to minimize economic barriers to access to energy, promotion of technical education and training in the field of energy, promotion of energy efficiency, awareness in the use of energy and technological development and infrastructure to facilitate access and access to electricity for vulnerable groups.

Socio-economic development: Includes projects to promote employment and generation of economic activity in the community, transfer of knowledge and training and support for local business activities.

Education: Includes projects to support training activities that involve students, families, schools and universities and to promote academic training, in general, not related to energy, through scholarships, chairs, etc.

1. Accumulated figures since 2015.

ESG Backbones - Sustainable Supply Chain

Verification of human rights aspects in the supplier qualification process (% qualified suppliers)Verification of security aspects in the supplier qualification process (% qualified suppliers)Verification of environmental aspects in the supplier qualification process (% qualified suppliers)Evaluation of contractor companies in social, environmental and ethical matters (% of contractor companies evaluated)

100% in the 2021-2023 period

100% in the 2021-2023 period

100% in the 2021-2023 period

Contracts that include the sustainability K factor (% of the total) UPG	84% 85% 86% 2021 2022 2023
RAD

Promotion of the qualification system: Volume of purchases made from qualified suppliers (% of the total) UPG	91% 92% 92% 2021 2022 2023
RADE

83%

I

91%

I

ESG Backbones - Occupational Health and Safety

Reduction of fatal accidents (No. Fatal accidents)Promotion of the performance of safety inspections in own and contractor facilities (number of inspections)Promotion of ECoS (extra checking on site) (No.)Promotion of medical screenings (No.)Security awareness (No. actions)

0 in the 2021-2023 period

70,000 annual inspections in the 2021-2023 period

72 ECoS in the 2021-2023 period (24 annuals)

6,400 medical screenings in the 2021-2023 period

34

NEW

36

38

2020	Category	SDG
1	S
0.36 73,547	S S

13

S

4,400

S

34

S

ESG Backbones - Environmental sustainability (1/6)

Environmental management

Implementation of environmental management systems certified by ISO 14001 (% of facilities)

100% of generation and distribution facilities in the 2021-2023 period

Promotion of environmental ECoS (Extra Checking On Site) (No.)

Water

Reduction of water catchment in the electricity generation process (m3 / GWh)

8 ECoS in the 2021-2023 period

345

298

2021

2022

249

2023

Waste

Promote efficiency in the management of waste generated in the electricity generation process UPGR	Waste production1< 20.000 tonnes in 2023
ADE

1.

Hazardous and non-hazardous wastes

2020	Category	SDG
100%	I E I
6,098 2	E T E S

90.69

E

30,958

E

ESG Backbones - Environmental sustainability (2/6)

Air quality

SO2 Emissions (g/kWhbc)NOx Emissions (g/kWhbc)Particle Emissions (g/kWh)Mercury Emissions (mg/kWh)

Biodiversity

Implementation of the biodiversity conservation programs (number of actions)

0.28

0.22

2021

2022

0.21

2023

0.87

0.84

2021

2022

0.76

2023

0.02

0.02

2021

2022

0.01

2023

0.00052

0.00008

0.00007

2021

2022

2023

> 20 actions carried out annually in the period2021-2023

2020	Category	SDG
0.17 0.77	E E
0.01 0.0003	E E

26

E S

ESG Backbones - Environmental sustainability (3/6)

Building management

Certification in energy, environmental and indoor air quality management in offices

Reduction of energy consumption1 (% of annual reduction)

Reduction of water consumption1 (% of annual reduction)

Reduction in the generation of waste paper and cardboard1 (% of reduction)

50% of the certified offices surface in 2023

0,5% vs previous year in the 2021-2023 period

0,5% vs previous year in the 2021-2023 period

3% in the 2021-2023 period

2020	Category	SDG
53% 17.6%	E E
26.6% 0.5%	E E

64%

E

1.

It only includes SIGAEC buildings

ESG Backbones - Environmental sustainability (4/6)

Reduction of space in all Endesa buildings (m2 reduced)

Reduction of CO2 emissions in buildings2 (% reduction vs 2020)

Patrimonial assets

Development of actions with social function on patrimonial assets (No. actions/year)

• 1. The project ends in 2022.

  10,219 m2 reduced in the 2021-20221 period

  7% of reduction in 2023

  10 actions in the 2021-2023 period

• 2. The reduction of emissions is determined by the reduction of energy consumption and office space.

• 3. Data in tons of CO2 in 2020.

2020	Category	SDG
1,252 4,7193	E E
8	S

ESG Backbones - Environmental sustainability (5/6)

Sustainable mobility: fleets and employees

Sustainable fleet management: electrification and optimization

Reduction of CO2 emissions in the management of Endesa's fleets (% reduction vs 2020)1

11% of electric vehicles in the fleet in 2023

49% of plug-in hybrid vehicles in the fleet by 2023

16% of hybrid vehicles in the fleet in 2023

24% of combustion vehicles in the fleet in2023

24% combustion vehicles in the fleet in 2023

Electrification of car park at headquarters (No. parking UP places)	E 820 parking places for electric vehicles in 20233
GRAD

• 1. Fleet emissions in 2020: 4,136 tons of CO2

• 2. Reduction vs 2019

• 3. The data considers the places that have an electric vehicle charging system installed

719

E T

ESG Backbones - Environmental sustainability (6/6)

Responsible management of taxi use

40% employees in shared taxi in 20231

74% km travelled in ecotaxis in20232

Electric Scooter Service (km travelled)Public transport card (No. employees)

• 1. % of the total number of employees who use the taxi for their business trips.

• 2. Ecotaxis use any of the following technologies: hybrid, electric, LPG or CNG

7,000 km in the 2021-2023 period

> 900 employees in 2023

2020	Categoría	ODS
38% 72% 5,645	A S T A S
4.095	T A S T A

S T

989

831

A S

Promotion of sound governance practices

Supervision and annual report to the CAC of the Anti-Bribery and Criminal Risk Prevention ModelMaintain a high level of excellence in ethical conduct and be recognized by ISR analysts (DJSI score in "Codes of conduct")

Score> 95/100 on DJSI Index in the 2021-2023 period

1.

% accumulated on the current workforce.

2020	Category	SDG
Accomplished Accomplished	G G
100% 96	G S G

100%

G

Presence of women on ENDESA's Board of Directors (% of women) UP	E 40% on the Board of Directors in 2022
GRA

Evaluation of the Board of Directors with the support of an independent consultant

1 triennial evaluation

2020	Category	SDG
31% NA	S G G
Accomplished	G

Innovation

Number of collaborations launched with Startups for the development of Endesa products and services and theimprovement of internal processes

Promotion of the culture of innovationPromotion of open innovation

Digitalization

Investment in the digitalization of assets, the client and our people (€ M invested)

I T S

314,35

TIC security verification (no. Actions / year) UPG	E 800 annual verifications in the 2021-2023 period
RAD

Cybersecurity

Promotion of cybersecurity awareness among employees and family members (number of actions)Execution of cyber exercises involving industrial plant/sites1 (No. accumulated cyber exercises)

NEW

15 events per year in the 2021-2023 period

36 cyber exercises in the 2021-2023 period

2020	Category	SDG
16	T T
1,139	S T

1.

Training services, carried out by mixed Cyber ​and business personnel, are mandatory and necessary to educate internal stakeholders in the correct use of the Enel CERT in terms of commitment, communication, confidentiality of communication and cyber incident - services response (detection, analysis, response, recovery)

Application of circularity criteria in the awarding of tenders UPG	10 criteria of circularity in the period 2021-2023
RADE

Circular economy

Promote a cultural change that supports development of the Circular Economy

Second life search for thermal power plant assets that cease to operate

Inclusion of a Circular Economy course in Endesa's training portfolio in 2021

6 informative sessions per year for employees in the 2022-2023 period

4 power plants in 2021 and 2 power plants in 2022

I E S G

1

Strengthening alliances with leading companies in the Circular Economy from different sectors, from the design of the alliance with 6 companies in 2021 to the incorporation of companies to the alliance in 2023

Circular economy

Proposal for Circular Economy solutions. Identification and feasibility analysis, in collaboration with the different business areas, of Circular Economy solutions and new business models focused on key technologies. (number of proposed solutions)

NEW

Exchange of best practices and knowledge with external actors through participation in working groups NEW (number of participations / year)

No. of Futur-e projects

5 projects per year in the 2021-2023 period

I E S G

5

2020 Sustainability Plan Results

Monitoring of the 2020-2022 Sustainability Plan

Strategic lines and backbones

Total compliance = 91%