Letter to stakeholders
2020 represented a truly disruptive year for the continent and the entire world. The COVID 19 pandemic triggered a health, economic, and social crisis of unprecedented scope in peacetime. This situation, in which electricity has been a key vector, has required Enel Américas to give its very best.
The organization rose to the occasion, which impacted employees, customers, investors, suppliers, and communities, to mention only a few key stakeholders. The efforts of its employees, executives, and partners, as well as the timely implementation of measures, made it possible to maintain the operational continuity of energy generation, distribution, and transmission, reinforcing the company's commitment to its customers and society at large.
In turn, this health crisis caused a crisis in the economies and labor markets of virtually the entire world. The region—which had already been recording lower growth figures in recent years—saw its economic problems and inequalities worsen, despite the measures taken by the different governments to try to alleviate the consequences of the pandemic.
Lockdown negatively impacted productive activity, domestic consumption, and investment, which, inevitably, had a severe negative effect on families. Nevertheless, a positive externality of COVID-19—if there is one—has been the acceleration of the energy and digital transition that the Company had already been developing in the region, with the subsequent boost in electrification and the development of renewable energies.
Since the onset of the health crisis, Enel Américas has faced the emergency in each of its subsidiaries with clear objectives: prioritize the health and safety of its workers, as well as those of contractors, customers, and communities, while ensuring the continuity of electricity supply in all regions where it operates.
The measures were diverse and numerous: monitoring the provisions of global and local health authorities, as well as fully implementing teleworking for all employees who were able to adopt it, excluding only the essential tasks that contribute to service operation and continuity.
In addition, to safeguard the health of employees in the field, the Company implemented digital systems to manage the plants in safe conditions. Meanwhile, an insurance policy, the first of its kind in the world, was activated for all Enel Group employees to guarantee special coverage in the event of COVID-19 hospitalization.
Health and safety, as well as support for the third parties' businesses, was also one of the priorities, for which partnerships were forged with local entities. As part of its unwavering commitment to sustainability and the community, Enel Américas collaborated with healthcare systems in all the countries where it operates, strengthened health and food supplies for local communities, and reinforced support for vulnerable customers such as electro-dependents and people with disabilities, to mention just a few of the actions taken.
Furthermore, the digital transformation proved to be essential in customer relations. By launching various applications and strengthening digital channels, including the website, it was possible to meet business and service requirements, thus facilitating the customer-company relationship.
Aware that the pandemic could have unexpected impacts on suppliers, Enel Américas also sought to guarantee the continuity of its contracts, as well as the corresponding payment flows.
Another milestone for the Company in 2020 was the Extraordinary Shareholders' Meeting held on December 18, which approved the merger, by incorporation, of EGP Américas into Enel Américas. With this, Enel Américas controls and consolidates the ownership of Enel Green Power's renewable energy generation business and assets in Central and South America (excluding Chile). Once the merger is finalized, the share of renewable sources in the Company's total generation portfolio will increase from 56% to 73% in 2023.
The foregoing demonstrates the corporate responsibility to continue progressing in the Latin American energy transition, which allows us to not only affirm our strong commitment to sustainable development, putting into practice the concept of creating shared value with other stakeholders, but to also fulfill the Sustainable Development Goals of the United Nations, while seeking to provide a just energy service.
This leadership position in renewable energies will also allow the Company to continue along the path of combating climate change and reducing emissions. Enel X will play a key role in this same path, as it seeks to make steady progress in the transformation of cities, companies, and people, offering integrated, innovative, sustainable, and digital solutions aimed at encouraging more conscious energy consumption, where efficiency is a shared goal in the countries where Enel Américas operates.
Progress has been remarkable, such as the public-private infrastructure project for the implementation of the first 100% electric Pan-American highway, which installed chargers in record time and in various hard-to-reach points in the region.
Thus, despite the adverse context, the Company fully maintained its commitment to its various stakeholders and to sustainability, which always remained at the center of all its actions and decisions. This and its performance in this regard explain its Bronze Class distinction for its work in this area, as well as its continued inclusion in the Sustainability Yearbook.
Regarding corporate governance, Enel Américas placed among the ten best companies in Latin America, according to the Annual Study 2020 of GovernArt and VigeoEiris, while in Chile it ranked as the second-best company in this area.
Enel Américas will continue supporting society in all the countries where it operates, especially its partners, employees, suppliers, and contractors, who have given their best to fulfill the responsibility of supplying uninterrupted energy at all times. In summary, as the leading company in the sector in Latin America, we will continue to sustain our operations on the basis of our values—innovation, trust, proactivity, and responsibility—which inspire and guide us to integrate the achievement of our economic targets and objectives with environmental and social ones, thus furthering our commitment to sustainability and development in the region.
Francisco de Borja Acha Maurizio Bezzeccheri
Chairman Chief Executive Officer
For more information, review the Enel Americas Sustainability Report 2020.