Sustainable Infrastructure - the example of Enel

3 min read 7 Oct 21

Investing in the road to zero carbon

Engaging with renewable energy champions on both sides of the Atlantic

Enel, the Italian utility and another company at the vanguard of renewable energy deployments shares the philosophy of sustainable growth. Enel is a domestic champion but also a global company with a significant presence in the long-term growth markets of South America. Enel’s strategy combines significant and growing investment in renewables with an acceleration in decarbonisation. The company is planning to triple renewables capacity by 2030, with wind and solar power expected to account for 80% of total capacity by the end of the decade. Coal is expected to be phased out completely by 2027.

Enabling the development of electric mobility is another key initiative, with Enel embarking upon the single largest deployment of charging stations in Europe. The company is proposing to quadruple the number of charging stations across the group over the next three years, from 186,000 at the end of 2020 to 780,000 in 2023.

Enel also has a clear commitment to returning cash to shareholders. The company’s guidance for dividend growth over the next three years is at least 7% per annum. 

We invested in Enel in June 2018 when concerns about the political and fiscal situation in Italy led to indiscriminate selling in the Italian stock market, particularly in the more interest-rate sensitive sectors. Enel’s business is not confined to the domestic market and we saw the sentiment-driven weakness as a buying opportunity. The stock was purchased on a historic yield of more than 5% with the potential for robust and reliable growth in the dividend stream .

Take a look at our glossary for explanations of the investment terms used throughout this article.

We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.

This is a marketing communication. Please refer to the prospectus and to the KID before making any final investment decisions. The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The views expressed in this document should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance. Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.

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