In line with the provisions of accountability standard AA1000APS and with the principles of inclusivity, materiality, responsiveness, and impact, Enel has defined a materiality analysis process. Enel Américas uses the information it collects to build the materiality matrix, which shows the topics that are a priority for its stakeholders and, at the same time, strategic for the Company. This matrix is presented to the Board of Directors and the Directors' Committee, forming the basis for not only defining the issues to be addressed in the Sustainability Report, which responds to stakeholder expectations, but for also guiding the entire Company's work focuses. These are reflected in the Enel Américas Sustainability Plan, which is also framed by the challenges of the current context and the SDGs.

The materiality of the different topics of the Company's strategy was obtained through a survey of the managers of the different areas of the organization. The analysis of the information collected at this stage is consistent with the guidelines established in the Strategic Plan 2022- 2024, the objectives of the different business lines and the commitments that the Company has assumed through its policies and standards of conduct.

Material issues analyzed in the 2021 period were defined under different key factors, such as the Company's policies and standards of conduct, the views and opinions of different stakeholders, relevant issues raised by sustainability rating agencies, and the Company's strategy, among others.

Materiality Matrix

With the information collected, Enel Américas builds the Materiality Matrix, which includes the issues that are a priority for stakeholders and, at the same time, strategic for the Company. This matrix is presented to the Board of Directors and the Director’s Committee and is the basis to define the issues to be addressed in the Sustainability Report, which responds to the expectations of the stakeholders. The materiality matrix also guides the focus of the entire Company; this is reflected in Enel Américas’ Sustainability Plan, which is also framed by the challenges posed by the current context and the SDGs.

Material issues

The highest priority topics are described below, although each of them and their associated risks are covered in each chapter of the Sustainability Report 2021 .

Health and safety: Enel Américas consistently takes care of the health of its employees, through a preventive approach that seeks to reduce occupational health and safety risks.

Protecting the health and life of people is the essential pillar of the "people" axis of Enel Américas’ Sustainability Plan, since, beyond legal requirements, preventing and reducing risks in this area is vital to achieve business sustainability. The Company is aware that safety risks go hand in hand with operational continuity, which is crucial for the success of the business. Additionally, human rights are also a priority, including access to work, which is a requirement for the achievement of other fundamental guarantees that directly impact the welfare and quality of life of people and society. Some of the main risks in this area are linked to the work done in operational activities within the Company's plants and infrastructure. The last two years added the risk of Covid-19 infection.

Good governance and corporate conduct: Enel Américas has a solid corporate governance structure, which operates under principles of transparency and ethical conduct, allowing it to achieve ambitious goals which seek to mitigate governance risks. Enel Américas operates in accordance with the most rigorous international standards, alongside the various national regulations that help the Company manage potential risks. The governance structure is constructed in such a way as to allow oversight of the impact of operations and to create value for all its stakeholders. The Board of Directors is the main governing body, leading the company's strategy and decision-making.

It should be noted that integrity in the Company's operations is also supported by Enel's Global Compliance Model, the Criminal Risk Prevention Model, and different policies that promote conduct in accordance with elevated standards of transparency.

Decarbonization of the energy matrix: The acceleration of the energy transition in Enel Américas is based on a flexible generation matrix, which encompasses both a growing renewable sources generation capacity, as well as a reduction in fossil fuel consumption. With the incorporation of Enel Green Power Américas, Enel Américas began a new phase in renewable energies, incorporating 4.7 GW of renewable capacity in Brazil, Colombia, Peru, Costa Rica, Guatemala and Panama, starting operations in the last three countries.

On the other hand, its gas-fired generation capacity provides flexibility and reliability to the energy matrixes of the countries where the Group operates, to support them in the process of moving to energy sources which are more intermittent.

Infrastructure and grids: To develop its energy transition process, Enel Américas needs a solid infrastructure that guarantees quality of supply to the population in its concession areas, to allow them to embark on the global trend towards electrification of energy consumption. To strengthen this infrastructure, the Company requires to adopt new technologies, robust processes and transversal digitalization in its operations. All of this, with a view to improving electrification and to supporting energy transition and new energy uses. For this reason, the Company continuously executes improvement plans through maintenance and modernization of the grids, to reduce the number and duration of service interruptions.

Sustainable supply chain: Regarding its supply chain, Enel Américas promotes a culture of environmental, social and economic sustainability, with values centered on innovation, ethics, transparency, health and safety protection, anticorruption and respect for human rights. For the Company, suppliers and contractors are strategic business partners who enable a stronger industry in each country, which is why it is key to engage in a responsible and transparent management of purchasing and contract administration. From the very beginning, Enel Américas shares its needs with suppliers, expressing its willingness to receive value proposals that are in line with the Company's sustainability goals. In turn, this translates into a sustainable supply chain in terms of ESG, which is in line with the Sustainable Development Goals (SDGs).

Materiality Analysis

Materiality Matrix

Material issues