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24 Jan 2023

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New Enel Circularity Index Measures Renewables

Posted with permission from ESG Impact Zone.

Enel presented Economic CirculAbility at the World Economic Forum held in Davos: it is a new key performance indicator (KPI) to measure the Group's circularity by comparing its economic performance with its overall resource consumption. Enel has also pledged to double this index by 2030 compared to 2020 levels. By doing this, Enel becomes the world's first company to adopt this kind of circularity index, and to set such an ambitious target.

"We decided to measure our circularity and to double it by 2030, as we believe it is an integral part of our industrial and competitive strategy, and of our sustainability too. In fact, we strive to become a leader in the energy transition," said Ernesto Ciorra, Chief Innovability Officer at Enel. "In order to achieve this sustainably, we need to make an effort not to consume raw materials, but rather to use them and then make them available again for future production cycles."

Economic CirculAbility takes into consideration the Group's overall EBITDA (in euros) and compares it with the amount of resources, including fuels and raw materials, consumed throughout the value chain by its various business activities (expressed in tons). Enel has pledged to double its performance with regard to this KPI by 2030 as compared with 2020, which means consuming half the amount of resources in relation to generated EBITDA.

The new KPI and the 2030 target were announced in Davos during a panel organized as part of the Corporate Circular Target-Setting' initiative, implemented by the Platform for Accelerating Circular Economy' (PACE), a global platform for public-private collaboration that was set up during the World Economic Forum to accelerate the transition towards a circular economy model, involving roughly 100 companies, public entities and associations.

Photograph from Enel.

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