2025-2027 SUSTAINABILITY PLAN
Compliance of our sustainability goals: 2024-2026 Sustainability Plan
Sustainability Plan aligned with the strategy
The targets are in line with the company's strategy considering:
The main sustainability trends in the global context in which the company operates
The material issues that arise from the analysis of Double Materiality
Public commitments and topics considered relevant to investors and ESG ratings
65
TARGETS
ENVIRONMENTAL
SOCIAL
GOVERNANCE
GROWTH ACCELERATORS
27
30
3
5
Key ESG trends
Natural ecosystems and biodiversity
Need for adaptation to climate change
• 2024 was the warmest year on record in the world and the first calendar year in which the global average temperature exceeded its pre-industrial level by 1.5°C
• Analysing the evolution of the last 10 years, both the frequency of events that have generated damages of more than $1,000 million and the volume of economic losses generated by natural disasters have increased by 73% and 75% respectively (between 2014 and 2023).
• However, investment in adaptation is progressing slowly and, although it has increased, there is still a significant financing gap.
Supply chain and respect for human rights
• The current consumption model means that by 2024 six of the nine biophysical limits worldwide have already been exceeded.
• There is an average decline of 69% in species populations since 1970 and more than 50% of the world's GDP has a moderate or high dependence on nature.
• In 2024, 80 regional and national elections have been held, covering more than 55% of the world's GDP. There is a shift towards protectionist policies, with an impact on international trade, energy security, supply chain resilience and energy price volatility.
• Social polarization is a phenomenon that continues to increase in many parts of the world, driven by several interrelated factors such as political divisions, social networks, global crises, culture or economic inequalities.
ESG skepticism as a brake on the rise of sustainable finance
• A lack of visibility at all levels of a supply chain has significant implications for organizations across industries, particularly when it comes to meeting regulatory requirements and identifying and mitigating supply chain risks.
• The new Corporate Sustainability Due Diligence Directive (CSDDD), under review, sets out the obligations of companies in relation to adverse effects on human rights and the environment.
Geopolitical uncertainty and social polarisation
• In recent years, there has been an increase in regulation worldwide. This trend has been most pronounced in the European Union, recently raising doubts about its impact on the competitiveness of member states.
• The EU has announced the need for simplification: "Omnibus Simplification Package", which will reform the EU Taxonomy, CSRD and CSDDD to reduce the administrative burden.
AI and technological advances
• The rise of the anti-ESG movement in the US is manifested in rejections and measures to curb the implementation of ESG policies at both the state and national levels, and in the withdrawal of funds by states such as Florida from asset managers such as BlackRock.
• In Europe, while 60% of fund assets are already ESG, the most sustainable funds (Article 9), which account for 3%, link five quarters of outflows, with a last third in 2024 as the worst quarter since records began.
Hyperregulation vs ESG deregulation
• The AI landscape is far from static. As governments and businesses adjust their strategies, AI promises to be a space of innovation, dispute, and transformation with consequences that go far beyond technology.
• The World Economic Forum highlights that AI can accelerate the transition to a more sustainable economy, but with regulatory concerns about environmental and ethical impact.
Relevant issues for the Sustainability strategy
Public commitments
DOUBLE MATERIALITY
22 10
Positive Impacts
Negative Impacts
9 8
Risks
Opportunities
ADDITIONAL TOPICS
Socially responsible investors and ESG ratings
Relevant topics for stakeholders not included in the double materiality analysis
2025-2027 Sustainability Plan
NATURE
STAKEHOLDERS
ENVIRONMENTAL
We continue on the path of sustainable development by confirming our commitments related to the fight against climate change and the conservation of biodiversity.
ZERO EMISSIONS AMBITION
SOCIAL
We take into account the needs and priorities of stakeholders to ensure that the transition is fair and inclusive for everyone: the people who work with us, our communities, our suppliers and our customers.
GROWTH ACCELERATORS
HUMAN RIGHTS
GOVERNANCE
The business model is based on a strong governance structure, ensuring stakeholders apply a set of principles of transparency and integrity. In addition to the commitment to respect for human rights.
GROWTH ACCELERATORS
Cybersecurity, digitalisation and sustainable finance accelerate the achievement of Endesa's sustainable strategy, embracing and strengthening all strategic themes in a cross-cutting way.
We maintain our decarbonization strategy aligned with the 1.5ºC scenario and set goals as a long-term climate strategy.
Change in the generation mix towards higher value-added assets, increasing capacity by 32% in 2027 vs 2024.
1.
Non mainlad system
2024-26 PLAN
TARGET
2024
2026
58 -
86 93
10.2 13.9
• Public commitments in terms of biodiversity and protection of ecosystems by minimising the impact of Endesa's sites
• Adequate environmental management to improve air quality through the reduction of polluting emissions, the responsible use of water resources and the minimization of waste production
2024-26 PLAN
2024-26 PLAN
TARGET
2024
2026
1. It includes a commitment not to develop new generation projects in areas declared a UNESCO World Natural Heritage Site.
2. No net loss of biodiversity for new projects developed from 2025 onwards in identified areas of high biodiversity impact
3. Apply to new projects
TARGET
2024 2026
• Increased investment in grids to achieve the ambitious objectives of the PNIEC and as a key element for the energy transition, integrating new renewable capacity and addressing new demand needs
1. Criterion OS. In central bars (REE criteria). At the country level. Not adjusted.
TARGET 2024 2026
9.78 9.64
47.7 41.8
2. TIEPI regulatory. Interruption Time Equivalent to the installed Power. According to the Spanish regulator.
2024-26 PLAN
2024-26 PLAN
Social
2024-26 PLAN
TARGET
2024 2026
2024-26 PLAN
TARGET