Topic: integrated reporting, double materiality, ESRS, connectivity between financial and sustainability information
Level: Master’s, postgraduate and professional education
Format: individual analysis or group discussion
Estimated time: 60–90 minutes
Case context
Enel is an international energy group operating across energy generation, distribution, supply and services. The energy transition creates major strategic opportunities, but it also increases climate, regulatory, technological, social and financial risks. Traditional financial statements cannot fully explain how decarbonisation, grid investment, community relations and value-chain management affect future cash flows, risk exposure and long-term business value.
The Enel Integrated Annual Report 2025 presents financial performance, strategy, governance, risk and sustainability information within one reporting system. The consolidated financial statements follow IFRS. The sustainability statement forms part of the management report and applies the CSRD and ESRS requirements.
Key facts
- Enel presents its business model across the full energy value chain: generation, distribution, sales and services.
- Financial and sustainability information covers the same reporting period and generally follows the same consolidation boundary.
- Material matters are identified through double materiality. Enel assesses both its impacts on people and the environment and the financial effects of sustainability matters on the Group.
- For each material matter, the report presents impacts, risks and opportunities, policies, actions, targets, results and metrics.
- Climate disclosures are connected with strategy, risk management, capital allocation and financial reporting.
- Enel states an ambition to achieve net-zero emissions across all scopes by 2040.
- The report combines mandatory ESRS disclosures with relevant ISSB, SASB and GRI information.
- Enel’s 2025 Sustainability Statement was approved by the Board of Directors and subjected to limited assurance.
This approach reflects the logic of the Corporate Sustainability Reporting Directive, CSRD, and the European Sustainability Reporting Standards, ESRS. In July 2026, the European Commission also adopted revised ESRS. The revision aims to reduce administrative burden while preserving decision-useful information for investors and other stakeholders.
Management challenge
Assume that you are part of Enel’s cross-functional team preparing the next integrated annual report. The team includes the Chief Financial Officer, Chief Sustainability Officer and specialists in strategy, risk, internal control, communications and assurance.
Your task is not to make the report longer. Your task is to make it more useful. The report must explain:
- how the energy transition changes Enel’s business model;
- which impacts, risks and opportunities are genuinely material;
- how climate targets affect investment, costs, revenue and risk;
- which metrics demonstrate measurable progress;
- how information can be traced from strategy to financial performance.
Assignment
Prepare an analytical brief of no more than two pages containing:
- three strengths of Enel’s integrated reporting;
- three areas for improvement from a report user’s perspective;
- one example of the chain “material matter → risk or opportunity → management action → KPI → financial effect”;
- one indicator that the Board should monitor;
- a concise conclusion on whether the report provides a complete view of Enel’s capacity to create long-term value.
Discussion questions
- How does Enel’s integrated report differ from a standalone sustainability report?
- Where is the connection between strategy, sustainability and financial performance most visible?
- Does Enel explain its double materiality process and stakeholder engagement clearly enough?
- Does the report disclose not only targets but also resources, deadlines, accountability and interim results?
- How could climate risks affect capital expenditure, asset impairment, provisions, financing costs and future cash flows?
- Which statements require external assurance, and which remain management estimates or forward-looking assumptions?
- Does the report support decisions, or does it mainly demonstrate regulatory compliance?
Analytical guide
A strong answer does not summarise the report. It tests the value-creation logic. For example:
Climate change → regulatory and market risks for carbon-intensive assets → accelerated decarbonisation and investment in grids and renewable energy → Scope 1–3 emissions, share of zero-carbon generation and capital expenditure → changes in operating costs, asset values, revenue and cost of capital.
This cause-and-effect chain transforms a collection of ESG indicators into integrated reporting that supports management, investment and public accountability.
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