We are writing to you to share the progress made in sustainability during 2021, as well as our vision of the future of the coming years, marked by the opportunities arising from the profound transformations we are witnessing.

The enormous challenges posed by climate change and humanity's desire to make changes towards a better quality of life, have become central elements for sustainable progress. Both have already been at the core of our sustainability plan for several years now, and we continue to dedicate our priority attention to them, framing our strategy within the goals of the 2030 Agenda.

At Enel Chile, we began integrating sustainability into our business strategy several years ago, operating with a business model that responds to the objectives of the Paris Agreement, ratified at COP26 in Glasgow, of not exceeding a temperature increase of 1.5°C compared to pre-industrial levels.

In line with this goal, our evolution in renewable generation continues to grow steadily. Thus, we reached 5.6 GW of renewable capacity by December 2021, and plan to increase to 8.0 GW by 2024, reaching 80% of our emission-free matrix thanks to the investments of the 2022-2024 plan.

Our investments also include storage and hybrid plants to increase production flexibility and security. Looking to the future, we are investing in the development of new technologies, such as tidal and green hydrogen, which will enable us to reach new industrial sectors that at the moment still rely on fossil fuels.

With these investments we have been laying the foundations to reduce our dependence on the volatility of international fossil fuel prices, becoming in 2022 the first company nationwide to close all its coal-fired plants definitively, setting a precedent by doing so 18 years earlier than planned by the National Decarbonization Agreement.

In parallel, we continue our process of continuous improvement in conventional generation plants, always optimizing their operation in the understanding that they are a necessary complement until the complete transition to renewable energy can be achieved. The intense drought that has been affecting Chile for several years now requires responsible management of hydroelectric reservoirs. For this reason, we promote an adequate and timely coordination among those who share water resources to ensure their best use, mitigating to some extent the impact of the drought that so severely affects Chile.

It is not enough to decarbonize the energy matrix; it is also necessary to make this clean energy available to customers, who are the protagonists on the road to Net Zero. We are part of a society that is becoming more and more demanding in environmental matters and in the experience of energy use, two priorities that mark the beginning of the decade of electrification. A transformation that is based on more diversified ways of using and disposing of electricity in cities, and which requires a renewed distribution capacity.

This scenario poses additional challenges to the grid, which must be more flexible and resilient. Our investment in innovation and digitization, as well as in data management, allows us to improve the performance of the infrastructure and the availability of the grid, increasing the quality of service and facilitating Access to electrification for citizens.

In 2017, Enel X began installing charging points in Chile, marking the beginning of electromobility and the delivery of advanced energy solutions. Today we have electric terminals with more than 120 charging points, and we are working to give life to ElectroRuta Enel X, linking Arica and Punta Arenas together in a single electrical route. To promote electrification, and the ensuing development of smarter and more circular cities, we offer technological and innovative solutions and services that cover the entire urban ecosystem. We are looking to become strategic partners of our customers, to provide services and electrical infrastructure according to their needs, so that they may reduce and achieve energy efficiency in their own consumption, which not only results in lower costs for them but also in positive impacts on the environment and the planet.

In this way, the purpose that drives us at Enel Chile has been paved: to improve people's quality of life. We believe that economic prosperity depends on environmental and social well-being, and for this reason, we look at the conservation of natural resources and biodiversity from a broad perspective or from an ecosystemic point of view, which involves local communities as an integral part of the same fabric. The strengthening of communities, cultural heritage and the territory in its global vision, is fundamental for sustained progress over time. We are dedicated to this work, prioritizing it as a specific axis of the strategic sustainability plan.

This energy, social and environmental transformation requires the development of new capabilities in different roles, necessary to realize the ambitious nature of our strategic plan. Encouraging horizontal leadership in diverse and inclusive work environments is key to the sustainability of our business, as well as promoting training and agile environments in which motivation and engagement are distinctive elements to advance towards our common purpose.

Our results are endorsed by the recognition of the most prestigious sustainability evaluators. For the first time we were included in the Bloomberg Gender Equality Index, which recognizes companies for their performance in gender equality, and we participated in the Carbon Disclosure Project (CDP) on climate change. We also improved our positioning in various evaluations by specialized analysts such as S&P Global: FTSE Russel, MCSI, Sustainalytics, and Refinitiv, among others.

Our navigation chart is based on a vision of the future that places sustainability as a key and essential element to move towards a decarbonized and electrified economy.

To achieve this, we must persevere in the construction of solid networks and links with stakeholders in a collaborative manner, guided by the creation of shared value, which marks the future and unites them in an indissoluble way.

Herman Chadwick Piñera
Chairman of the Board of Directors
Fabrizio Barderi
Chief Executive Officer