Regarding the management of social risks, it is important to note:
Social conflicts with intensity that may jeopardize the continuity of operations. To face these potential impacts, Enel Chile has, on a territorial level, a strategy of continuous dialogue and the presence of personnel dedicated to community and stakeholder engagement, social investment focused on local development, and structured Complaints and Grievance Management systems, which are the tools for mitigating conflicts related to operations.
Enel Chile has plans and processes in place to manage situations in the event of national contingencies. Aware of the strategic role that electricity represents for the country, these plans prioritize uninterrupted delivery of electricity to the system, customer electricity supply, and employee safety.
Risks linked to health and safety, for example, risks caused by accidents with company personnel or contractors. Enel Chile prevents these risks by promoting a culture based on safety, which includes developing policies and including safety in processes and training, among others.
Related to employee diversity, attraction, and retention in the context of the energy transition, to meet these challenges, Enel Chile has a Diversity Policy, along with a Talent Management and Promotion Policy. The Company carries out different initiatives dedicated to work-life balance and promotes education and personal growth through scholarships and courses.
Regarding the management of governance risks, it is important to note:
Risks arising from unlawful conduct, including corruption, lobbying, etc., by company personnel or contractors, or from anti-competitive practices. Enel Chile maintains an Internal Control and Risk Management System based on legal and commercial standards.
Human rights violations, risks that are detected through due diligence processes, which are conducted annually throughout Enel Chile value chain and subsidiaries and across all operations. Action plans are developed from the due diligence process to address identified areas of vulnerability or impacts.
Additionally, the risk matrix includes emerging transversal risks related to:
Personal data protection: in the era of digitalization and market globalization, Enel Chile business strategy has focused on accelerating the transformation process towards a business model based on digital platforms, through a data-driven and customer-centric approach, which is being implemented throughout the entire value chain. Enel Chile boasts a sizeable customer base that reaches more than two million, with more than two thousand people directly employed by the Company.
Consequently, Enel Chile new business model requires managing a much larger volume of personal data than in the past. This means greater exposure to risks associated with processing personal data and increasingly stringent privacy legislation worldwide.
Some of the ways in which these risks can occur include a breach of confidentiality; loss of complete, accurate, current, and available personal data of customers, employees, and third parties (such as suppliers and contractors), and problems in the systems’ resilience, all of which could result in sanctions, interruptions in operations or processes, economic or financial losses, as well as reputational damage.
To manage and mitigate this risk, Enel Chile has adopted a personal data governance model (Data Protection Compliance Program) that assigns roles at all levels of the companies in Chile (including the appointment of a Data Protection Officer (“DPO”), adopts digital tools for data mapping, and includes an adequate risk impact assessment, technical and organizational security measures, among others.
Digitalization, IT efficiency, and service continuity: Enel Chile is carrying out a digital transformation for how it manages its entire value chain, developing new business models and digitalizing processes, integrating systems, and adopting new technologies. A consequence of this digital transformation is that Enel Group in Chile is increasingly exposed to risks related to the functioning of the information technology (IT) systems implemented throughout the company, with impacts on operational processes and activities that could lead to service disruptions or data leaks and data loss.
To mitigate these risks, the Digital Solutions unit, which is responsible for leading the Group’s digital transformation in Chile, has set up an internal control system that introduces control points throughout the value chain. The unit’s internal control system oversees activities performed internally and those entrusted to external associates and suppliers. In this way, Enel Chile is promoting the dissemination of culture in this area to successfully achieve the digital transformation and minimize the associated risks.