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47995
ENEL COLOMBIA S.A. ESP
Aug 31, 2023
Colombia
Latin America and the Caribbean
Nov 17, 2025
B - Limited
Active
Approved : Oct 31, 2023
Signed : Nov 16, 2023
Invested : Nov 30, 2023
Integrated Utilities
Infrastructure
Regional Industry INF LAC & EUR
Enel S.p.A. (“Enel Holding” or “the Group” www.enel.com) is the world's largest vertically integrated utility company (generation, trading, distribution, market). The company operates across 47 countries in five continents through 1,000 subsidiaries and employs a total of 65,124 workers globally. Enel Holding is publicly listed on the Italian stock exchange, with a market capitalization of about € 61.7.
Enel Colombia S.A. E.S.P. (the Borrower) is a regional regulated and integrated public services company operating in Colombia and Central America’s power generation and distribution segments. Enel Colombia is owned by: i) Enel Americas – a subsidiary from Enel Spa, (ii) Grupo Energia de Bogota, and (iii) other minority shareholders. Enel Colombia accounts for a consolidated power generation capacity of approximately 4.2 GW (90.4% renewable sources)and approximately 3.83 mn distribution clients in Colombia.
Enel Colombia operate 5 business lines: (i) Enel Power Generation, (ii) Enel Grids, focused on energy supply and distribution, (iii) Energy and commodity management “trading”, (iv) Retail, focused on commercialization, and (v) Enel X, focused on business-to-business innovative solutions in street lighting and transportation, among others. Enel Grids Colombia assets include: 1,348 Km of high tension (HT) lines, 30,687 Km of medium tension (MT) lines, 43,570 Km of low tension (LT) and 187 substations.
The proposed investment entails an up to 8-year IFC senior loan for up to US$300 million equivalent in COP to Enel Colombia’s Enel Grids business line. The proceeds of the facility will be used to finance part of the Borrower’s 2023-2025 energy distribution projects and maintenance CAPEX in Colombia including: (i) maintenance plan of existing networks; (ii) climate resilience investments; (iii) network expansion to new clients; (iv) digitalization and smart-meters; and (v) required investments for sustainable transport in Bogotá (metro, regional train and e-buses). The project does not include financing for power generation or distribution which would represent high E&S risk.
IFC has supported Enel Holding in several project in Africa, India, and LAC (Wind Brazil #33579; EGP India #44816; E-buses Chile #44610; SS Zambia #37811) which have a satisfactory E&S performance.
IFC personnel visited the corporate office of Enel in Bogotá, Colombia June 6-9, and 15-18, 2023. This included a review of environmental, social and health and safety (ESHS) documents and information and meetings and presentations with senior management including: the Company’s Chief Financial Officer, Head of Capital Markets, Head of Corporate Finance, Sustainability Team Colombia, Health, Safety and Environment (HSEQ) Team Colombia Enel Grids, Sustainability and Community Relations Team; People Management Team; Institutional Affairs and Corporate Compliance Team. IFC’s visit also included site visits to 3 Substation sites, equipment and material warehouses, work fronts, and 10 high and medium transmission lines sites. Also, the visit included interviews with workers and contractors.
Based on the findings of the appraisal and review of available documentation, there are no significant adverse impacts on communities or adverse impacts on IP communities and therefore PS7 does not apply. PS8 is also not applicable as the company has not identified cultural assets in the area of influence of projects and the company has developed a Chance Finds procedure in case archeological or cultural resources are encountered.
This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).
Key environmental and social (E&S) risks and issues include: (i) Effective implementation of the corporate ESHS standards and their application in the Colombia operations, (ii) company and project-level organizational capacity to assess and manage ESHS risks; (iii) labor, working conditions and grievance mechanism, (iv) contractor and supply chain EHS management, (v) OHS management; LFS and emergency preparedness and response, (vi) risk management associated with energy and resource efficiency, pollution prevention and waste management, (vii) community health and safety and security,(viii) land acquisition and involuntary resettlement, (ix) sensitive and high-value biodiversity and ecosystem services, (x) and (xi), company's stakeholder engagement activities related to management of E&S aspects and its grievance mechanism.
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PS1: Assessment and Management of Environmental and Social Risks and Impacts
Policy
Enel Holding and subsidiaries, including Colombia, are bound by a comprehensive set of overarching Environmental, Social and Health and Safety Group policies. These policies are developed at the Group level, adjusted to meet local context, and implemented in all projects and countries of operation and provide a framework for addressing ESG issues. Aligning E&S procedures with the IFC Performance Standards at the corporate level is an objective of Enel Group and will assist in improving E&S performance. To this end, Enel Grids Colombia, for the purpose of the Use of Proceeds of the financing, will implement the operational instruction(s) that addresses the gaps related to its environmental and social policies and procedures in line with IFC’s PS and WBG EHS guidelines, to address all applicable PS requirements. (ESAP #1 and #3).
Environmental and Social Management Systems
Enel Holding has a comprehensive integrated HSE Integrated Management System (IMS) that defines the rules of conduct, general working methods and organizational framework applicable across the Group. The IMS is certified to ISO 9001, 14001 and 45001 in all countries of operation and ISO 37001 and 5001 in all global power and generation countries.
Enel Colombia’s integrated ESMS is implemented across all business lines, ensuring all activities respect human rights, protect the environment, promote a circular economy, and meet global climate targets, while transitioning into a carbon neutral business model. Enel Colombia’s HSEQ management function ensures that operations meet holding guidelines and country requirements.
The Company addresses social management based on its comprehensive policies. Social risk management is currently not integrated into HSEQ. As part of ESAP item #2, Enel Grids Colombia will develop and integrate a social management processes into GRIDS corporate Management System in line with PS1, including consideration of the following: (i) development of operating procedures to identify and address social risks of all their operations that also meet PS1 besides local regulations; (ii) adequate assessment of project's area of influence (AOI) in line with PS1 and based on identified risk and impacts ; (iii) development of the required corporate social policies, plans, and procedures (e.g., Stakeholder Management Plan) as part of the corporate ESMS; and (iv) measures to ensure adequate capacity and internal alignment to implement those plans detailing roles, responsibilities, and accountabilities. These processes will be implemented through operational instruction(s).
Identification of Risks and Impacts and Management Programs
Enel has a comprehensive risk management process that focuses on operational assets at three levels: (i) Risk identification (upstream); (ii) Risk management (e.g., action plans, thematic projects and training; and (iii) Risk monitoring (downstream). Environmental data reporting is done through digital tools, measuring KPIs across Group operations and includes an HSEQ dashboard and environmental reporting system. The current risk assessment process requires the development of Environmental and Social Impact Assessments (ESIAs) in line with Colombian local regulatory requirements. Additionally, Enel Holding has developed risk screening tools that consider social, economic and environmental context analysis during planning and at the project development stage for all new, existing, and acquired projects across business operations that require extensive engagement with communities using tailored communications and involvement strategies. .
Enel Grids Colombia will develop a procedure – including ToRs - for conducting PS-compliant integrated ESIAs for project activities (ESAP #3). Additionally, the PS-compliant ESIAs developed under IFC’s financing including the assessment of cumulative impacts and any needed mitigation measures in line with Good International Industry Practice (GIIP) with relevant mitigation measures commensurate with eventual project contribution included in the Environmental and Social Management Plan (ESMP).For all pipeline assets to be funded by IFC which are subject to an EIA process, and which have already undergone a national EIA process, Enel Grids Colombia will conduct a facility wide E&S due diligence (ESDD) against applicable IFC PS including implementation of corrective actions where required (ESAP #3)
As part of the Project scope under IFC review, the Company has not identified environmental & social risks nor impacts associated with indigenous people based in their current areas of influence. Therefore, PS7 does not currently apply. .
Organizational Capacity and Competency
Enel Holding units, responsible for sustainability and community relations processes, play a guidance and coordination role ensuring that commitments are cascaded down to Countries, which is the case for Colombia. The Sustainability Manager for Enel Colombia manages the sustainability planning, monitoring, and reporting processes. On HSEQ Matters, each business line has an HSEQ manager, supported by a HSEQ coordinator.
Social issues management is shared between the Sustainability and Operation Support teams. Both teams are responsible for maintaining communication with local leaders, community members, and other stakeholders. The Sustainability team has primarily focused on implementing social programs based on the global corporate policy of Creating Shared Value (CSV) on the vision of community development as explained in section PS1 (Stakeholder Engagement). The Operations Support team mostly manages actions to address social risk based primarily on fulfilling the national legislation. Enel Grids Colombia will ensure adequate capacity and internal alignment to address social management processes as per ESAP item #2
Contractor E&S Management
To work with Enel Colombia, all contractors and their subcontractors or other third parties must apply and qualify to enter Enel’s Global Procurement Program, consisting of a comprehensive set of HSEQ terms and obligations that must be met in every stage of the hiring and selection process, from tendering to end of contract. All third parties must demonstrate compliance with Enel Colombia HSE terms and obligations prior to joining a project. The HSE terms include provisions and requirements in respect to having an ESMS, EHS structure, and management plans, including emergency management, fire prevention, first aid capabilities, HSE training and awareness, management of sub-contractors, use of inspections, performance monitoring and reporting systems, and consequences for breaching Enel Colombia policies and requirements. Contractors that qualify to work on-site are supervised daily by an Enel site management team, comprising HSEQ, Engineering & Construction (E&C) and O&M personnel. Enel policies and procedures on ethics, human rights, working conditions, recruitment and selection, and training and development are also legally binding to contractors. Contractors and third parties’ performance is routinely monitored and non-conformances or non-compliances, including incidents or fatalities, are reported in the global procurement digital platform, available to all subsidiaries
Monitoring and Review
Enel Colombia has several digital tools in place for HSEQ metrics monitoring to organize, document, review, and update procedures, establish and manage action and improvement plans, streamline operational activities across the business lines and tracking legal compliance. The tools allow for a fully traceable accounting system of performance against sustainability and ESG indicators. Contractors are regularly monitored for its HSE performance, corrective actions plans are issued when required and implementation is monitored. Performance is considered when contracts are up or review; with penalties included in contracts if performance is not adequate. Enel Grids Colombia, for the purpose of the Use of Proceeds of the financing will update its risk monitoring and audit system and program to incorporate the quantitative and qualitative requirements of the IFC PS and WBG EHS Guidelines. (ESAP item #4)
PS2: Labor and Working Conditions
Human resources at Enel Colombia are managed by a People Management Team comprised of 11 persons, responsible for workforce management, employee relations, and the implementation of wellness and well-being programs in coordination with the global team. The diversity and inclusion plan focuses on four pillars of diversity with a strong focus on gender leadership, strengthening partnerships with external foundations, and leading efforts in recruiting women and men to achieve a more equitable workplace.
Human Resources Policies and Procedures
Enel Holding’s HR Policy establishes the company’s position on labor practices consistent with PS2 requirements. It covers (a) forced and compulsory labor, (b) child labor; (c) diversity and inclusion, (d) equal opportunity and non-discrimination, (e) freedom of association and collective bargaining; (f) worker health, safety, and welfare issues; and (g) fair and dignified working conditions. In 2019, the Workplace Harassment Policy highlighted the principle of respect for individual integrity and dignity in the workplace, also addressing sexual and discrimination-related harassment. In 2020, a Statement against Harassment was published on the Enel website. Enel Colombia has adopted the global corporate Holding’s HR Policy at the country level.
Working Conditions and Terms of Employment and Freedom of Association
Enel Colombia complies with the Colombian labor law and conventions of the International Labor Organization (ILO) concerning workers’ rights (freedom of association and collective bargaining, consultation, right to strike, etc.). These labor principles include remuneration, whereby the minimum payment made to Group employees cannot be lower than the level established by the collective bargaining agreements and legislative and regulatory texts in force in the various countries, in line with ILO provisions.
Non-discrimination and Equal Opportunity
Enel Colombia currently employs a total of 2,327 direct and an estimated 14,000 indirect (contractors) workers on their group’s operations. Of these direct employees, approximately 34% are female workers. Enel Colombia has implemented many actions and measures on recruitment and retaining women, including the principle of equal pay for equal work for men and women. The Company has been awarded the “Equipares Gold” likewise by the SHE IS Foundation -among others- for their good practices and initiatives on gender equality and Gender Based-Violence prevention.
Grievance Mechanism
Enel Colombia has three channels available for workers to communicate and submit complaints against the company or any of their business activities: (i) the Business Partner online, email, and call center system, (ii) Through the Coexistence Committee elected by workers and implemented by national law, and (iii) Workers also may report a breach or violation of the Code of Ethics through the Ethics Hotline or directly to a line manager or the human resources department. A third party manages the hotline and allows stakeholders to report complaints against any of Enel’s global operations. The Whistleblowing Policy identifies how the Audit function receives and analyzes complaints/reports and ensures the necessary investigations are conducted, guaranteeing homogeneity at the group level in accordance with the Group’s Compliance Program and the Colombian legislation where the complaint has been filed. Issues reported through the hotline are categorized as either ethical or general complaints and managed per the policy. This includes provisions protecting confidentiality, guaranteeing the complainant’s anonymity, and protecting the complainant from reprisal. Complaints associated with GBV and Sexual Harassment can be filed through the Coexistence Committee and the Ethics Hotline.
During the appraisal, IFC interviewed Enel’s direct and indirect workers; all of them preferred to file complaints directly to their supervisor, and the Ethics Hotline was unknown. Although most grievances are resolved, not all of them are tracked and logged in a centralized system. As per ESAP item #5,
Enel Grids Colombia will ensure the management of labor complaints is aligned with PS2 requirements including to develop an adequate register for all complaints received by the Community Committee and official channels established by P&O, including number of complaints and response times. Likewise, Enel Grids Colombia will ensure training processes for the Community Committee personnel and P&O leaders regarding GBVH with a survivor-centered approach implemented by specially trained personnel.
Occupational Health and Safety
Occupational health and safety at Enel Holding and subsidiary levels are managed as part of the HSEQ IMS, supported by its digital platform. Key performance indicators for safety include both leading and lagging KPIs and are consistently collected and analyzed at each site or facility and reported to Enel Colombia management and to the groups, to assess the overall effectiveness of plans and procedures locally and globally within the organization. Contractor OHS performance is also measured through the digital platform and procedures.
Enel has established procedures to record, classify and process accidents and incidents (near misses). Colombian operations have lost time injury frequency rate (LTIFR) of 0.06 in year 2022, which compare favorably with similar statistics in the energy and industrial construction sectors and at the country level.
The use of personal protective equipment and collective protection measures and procedures, as well as safety training was observed to be adequately and consistently enforced at the sites visited. Enel Colombia builds safety clauses into its agreements with contractors and suppliers, establishing the safety KPIs and expected performance requirements. Contractors are contractually obligated to adopt OHS measures compliant with the company HSEQ requirements and to provide workers training, in accordance with national requirements and the company’s policies and procedures. Management of risks related to workers engaged with third parties is adequate.
Workers Engaged with Third Parties
To work with Enel Holding and its business lines, all contractors and their subcontractors or other third parties must apply and qualify to enter Enel’s Global Procurement Program, consisting of a robust and comprehensive set of HSEQ terms and obligations that must be met in every stage of the hiring and selection process, from tendering to end of contract. All third parties must demonstrate compliance with Enel Holding’s HSE terms and obligations prior to joining a project. The HSE terms include provisions and requirements in respect to having a formal and effective ESMS, EHS structure, and management plans, including emergency management, fire prevention, first aid capabilities, HSE training and awareness, use and handling of heavy machinery and vehicles, working on complex sites, management of chemical and hazardous materials, management of sub-contractors, use of inspections, performance monitoring and reporting systems, and consequences for breaching Enel policies and requirements. Contractors that qualify to work on-site are supervised daily by an Enel site management team, comprising HSEQ, Engineering & Construction (E&C) and O&M personnel. Enel policies and procedures on ethics, human rights, working conditions, recruitment and selection, and training and development are also legally binding to contractors. Contractors and third parties’ performance is routinely monitored and non-conformances or non-compliances, including incidents or fatalities, are reported in the global procurement digital platform, available to all subsidiaries.
PS3 – Resource Efficiency and Pollution Prevention
Enel Grids Colombia quantified greenhouse gas emissions (GHG) using internationally recognized methodologies resulting in 117,099 ton CO-eq for Scope 1 and 2. Emissions are primarily due to vehicle and equipment fuel, sulfur hexafluoride (SF6) recharge in power equipment, energy consumption in offices and substations and electricity distribution losses. The company has several energy efficiency initiatives, such as LED lighting upgrades on substations, SF6 management plans, initiatives to reduce distribution losses, and circular economy initiatives, among others.
As stated on its Environmental policy, the company is committed to reducing its environmental impact by applying best available technology and best practice across its operations, taking into consideration a life cycle analysis approach and the circular economy concept, and to an optimal management of waste and wastewater. Construction activities and substation operations do not have a significant water use and the company follows requirements issued on environmental permits and licenses, as applicable.
Wastes and hazardous waste are generated during construction, maintenance, and operation of assets. Disposal is done as per local requirements with license providers. Enel Colombia has a program in place aimed to manage equipment contaminated with PCBs, aimed to identify, gradually substitute equipment. There is commitment to have 100% of equipment identified by 2024, and the company is implementing innovative process to decontaminate equipment, reducing cost of conventional disposal methods.
PS 4 – Community Health, Safety, and Security
Enel Colombia, as per its Holding policy and local regulations requirements, implements risk identification, management, and monitoring in all existing and new operations, including work fronts for maintenance activities, to ensure safety measures for their workers, contractors, and clients. The Company follows local regulations to address impacts on affected neighbors (including those who are not necessarily clients), primarily focused on the response to complaints than an aim to be proactive and anticipate and prevent impacts. In order to further align Enel’s approach to managing community health and safety with PS4, as per ESAP item # 6, ENEL Grids Colombia will update/develop specific procedures aligned to PS4 to ensure community health and safety in all their work fronts and operations; and to address concerns, raise awareness, and disseminate relevant communication with communities and other stakeholders, related to the safety risk and measures in concordance with the Stakeholder Engagement Plan. The procedures will pay particular attention to potentially affected vulnerable people living in households adjacent to new areas in construction stages. These processes will be implemented through operational instruction(s)..
Security Personnel
Enel Colombia has 11 direct employees (reporting to the Security Chief) focused on security risk assessment and monitoring based on their corporate procedures and policies dictated by Enel Holding, which has adopted the Voluntary Principles on Security and Human Rights and is committed to guaranteeing that private security forces protecting their personnel and properties act in a way consistent with the applicable national law and regulation and international standards, while also encouraging public security forces to act in the same manner. Enel Colombia hires two specialized and certified companies to perform the activities of protection and security for their facilities and operations. About 550 (mostly unarmed) security guards are distributed throughout its operations. Only in specific and high-risk activities a minimum number of armed guards are assigned. Enel Colombia ensures -per national regulation requirements- that the security companies perform background checks on their guards and provide them training on Human Rights, use of force, the Code of Ethics, and company-specific security operations before being assigned. As per ESAP item #7, in alignment with PS4,
Enel Grids Colombia will ensure its Security Forces Management Plan is in line with PS4 and according to principles of proportionality and good international practice, including monitoring and verification that security contractors are constantly training security personnel on Human Rights principles to avoid potential harm to employees, communities, and other stakeholders. This plan should include specific means to (i) carry out an adequate assessment of security risks and effective responses; (ii) screening criteria for the recruitment of guards and appropriate engagement with the public forces; (iii) training on prevention and management of GBVH; and (iv) and protocols to manage grievances related to incidents associated with security guards’ actions.
PS5 - Land Acquisition and Involuntary Resettlement
Enel Holding does not have a specific policy on Land Acquisition and Involuntary Resettlement. However, for new land requirements, Enel Colombia follows the business development process that considers four aspects regarding land acquisition (i) avoid the need for involuntary resettlement and livelihood restoration. The analysis is performed to avoid sensitive social, environmental, and technical aspects. Expropriation and other compulsory legal procedures are considered as the last resort in compliance with local laws; (ii) information gathering, evaluation, and monitoring, including EIA, SEECA (Social, Environmental, and Economic Context Analysis), analysis of alternatives, and monitoring of impacts; (iii) community engagement and grievance mechanisms through the project life cycle; and (iv) focus on livelihood restoration through management of impacts of project implementation and maximizing community and environmental benefits.
Enel Colombia includes a social assessment as part of the legal process of land acquisition to avoid potential resettlement, impacts on vulnerable people, and social conflict. Based on the information gathered from the Company, as of date there is no past nor potential physical displacement. However, the Company will require acquiring new land properties for future projects. Areas visited during the appraisal were acquired through negotiations with private landowners and companies and are located in urban and preurban zones. The Company implements social programs for the benefit of neighborhoods affected by the construction of the Company’s facilities/assets. As per ESAP item #8, Enel Grids Colombia will develop operative instructions for evaluating land use and implementing land acquisition, resettlement, and livelihood restoration in alignment with IFC PS5 to mitigate any impacts of future planned land acquisition on affected people in the projects to be financed by IFC. Operative instructions will consider particular attention to vulnerable people, including a socioeconomic survey of all land users to identify and address potential economic/physical displacement, means to ensure stakeholder engagement, and an external grievance mechanism to address complaints associated with land acquisition and involuntary resettlement.
PS6 – Biodiversity Conservation and Sustainable Management of Natural Resources
The project includes 25 powerline or substation subprojects with low potential to cause significant adverse biodiversity impacts, primarily due to their location within portions of Enel Grids Colombia’s service territory that are dominated by degraded habitats. A majority of the subprojects are located within the city of Bogotá, itself (Distrito Capital) or the agricultural plain adjacent to Bogotá on the west, extending to the city of Facatativá, Cundinamarca. Three subprojects are located to the north of Bogotá extending northward to the environs of the city of Ubaté, Cundinamarca, within rural landscapes comprised primarily of croplands, but also including some powerline sections that traverse small patches of forest, and three subprojects are located in urbanized habitats within the small cities of Guaduas, Girardot, and Flandes, the latter including a stretch of medium-voltage powerline that crosses the Magdalena River and a small patch of associated riparian forest.
Seven of the subprojects overlap a Key Biodiversity Area (KBA)/Important Bird Areas (IBA). Specifically, six of the subprojects overlap the Humedales de las Sabanas de Bogotá KBA/IBA, and one of them overlaps the Complejo Lacustre de Fúquene, Cucunubá, y Palacio KBA/IBA. With respect to the former, the subprojects are situated entirely within urban/industrial habitats and therefore present low biodiversity risk. In the case of the latter, overlap consists entirely of medium voltage powerlines that are sited along existing roads and within degraded habitats (cropfields). ESAP #10 will ensure that Enel Grids Colombia will engage the appropriate KBA/IBA responsible stakeholder (e.g. Asociación Calidris for IBAs), regarding any overlaps of Enel Grids Colombia’s IFC-financed projects with KBA/IBA, in order to a) confirm and document that any such overlaps are legally permitted and designed and managed in a manner consistent with any government-recognized management plans for these areas.
Biodiversity impacts are managed by Enel Grids Colombia’s Medioambiente division, including the department of Permisos y Diseños Detallados department, who screens for E&S risk at the planning stage, and then during the development stage, prepares the ESIA and obtains other permits, as necessary, to comply with Colombia’s national and state-level environmental regulatory framework, including the national/state ESIA process. Colombia has a relatively strong environmental regulatory framework, including very detailed and specific requirements for reforestation and other biodiversity compensation programs triggered by the loss of natural forests and other high biodiversity habitats, as defined by Colombia’s biodiversity compensation manual (2018). Accordingly, Enel Grids Colombia has acquired a large portfolio of properties that it manages as reforestation and biodiversity compensation areas. Per ESAP #3, Enel Grids Colombia will ensure that ESIAs are compliant with IFC PS, including PS6 on biodiversity. Per ESAP #11, Enel will conduct gap analysis between national/state biodiversity/deforestation compensation requirements and PS6 requirements regarding the satisfaction of the “No Net Loss” (NNL) mitigation standard.
Regarding the potential for operations-phase electrocution and collision impacts to birds and other wildlife as caused by distribution and transmission lines, there is a low likelihood that Enel’s infrastructure could cause severe impacts, as the area of influence does not contain any bustards, cranes, flamingos, or other species in the category of highest susceptibility and sensitivity to these types of impacts. Nonetheless, a wide variety of birds and other wildlife that are known or believed to be susceptible to powerline collision and/or electrocution impacts do occur within Enel Grids Colombia’s territory, including various eagles and other raptors, several large-bodied waterbirds, monkeys, possums, sloths, snakes, and others. Enel Grids Colombia currently manages such impacts with a variety of mitigation measures including i) the installation of insulated or semi-insulated (compact) cabling on certain portions of its medium-voltage (distribution) powerline network, ii) the installation of bird flight diverters on certain portions of its high-voltage (transmission) powerline network, and iii) the installation of insulating covers on cables and other energized equipment in certain substations, to shield wildlife from electrocution. As per ESAP item #12 Enel Grids Colombia will hire a qualified external expert to conduct a comprehensive review of wildlife electrocution and collision risks on its medium- and high-voltage networks, and implement the expert’s recommendations resulting from this review, as feasible, in order to further reduce this potential source of biodiversity risk.
External Communications and Grievance Mechanism
Enel Colombia has a mechanism to address clients’ and community’s comments, concerns, and grievances, including various means such as a phone number, email contact, post, and in open dialogue when a representative of the Company visits the neighborhoods. Clients’ grievances related to the service and environmental or social complaints are registered in the same database. In 2022 around 1200 complaints were registered and most of them were solved in less than 15 days. Likewise, in their Stakeholder Engagement Plan, the Company is in the process of improving and updating the grievance mechanism. In addition, stakeholders, whether internal or external, can report complaints through the Ethics Hotline. As per ESAP item #9, Enel Grids Colombia, where required for the purpose of the Use of Proceeds of the financing, will update and enhance their existing External Grievance Mechanism to distinguish complaints related to their services from those related to their operational activities, and will include a) channels to allow confidential and anonymous submission and those specific for Gender-Based Violence and Sexual Harassment risks; b) measures to reinforce its disclosure and dissemination among communities; and c) corrective actions to ensure all grievances are adequately tracked and logged, centralized; analyzed and reported.
Enel Colombia follows their corporate policy of Creating Shared Value (CSV) to identify and prioritize the stakeholders and is currently updating the stakeholders’ mapping, analysis, and their Stakeholder Engagement Plan is yet to be developed. The Company engages with 16 municipalities in Cundinamarca, including Bogota City, and maintains strong relationships with stakeholders identified within the areas of influence, mainly with their clients and focusing on social support than addressing informed consultation and participation regarding risks and impacts of their operations. The Sustainability team addresses stakeholder engagement activities primarily focused on assessing opportunities for potential social support as part of their sustainability program of sharing benefits and maintaining 143 ongoing community development projects under Enel Holding’s vision. CSV is centered on the following pillars, applicable to all projects: i) providing better access to electricity; ii) achieving social and economic development of communities: iii) supporting local communities: in education, social and family support, recognition, among others; and iv) sustainable operational efficiency.
In addition, the Support to Operations team engages with stakeholders when performing maintenance activities on work fronts and in the areas of influences of sub-stations and storages/ workshops to deliver relevant information about their operational activities and address clients’ and neighbors’ concerns and complaints regarding temporary impacts. As per ESAP #13, in line with PS1, Enel Grids Colombia will develop and implement a robust Stakeholder Engagement Plan to ensure the ongoing processes of stakeholder analysis and mapping, social monitoring, informed consultation, and participation, adequate disclosure of information, and ongoing reporting to affected communities in specific regarding the management of risk and impacts of the Company operations. The Plan will include a strategy to address specific concerns and perceptions about electromagnetic radiation, implement participatory monitoring mechanisms, and reinforce key messages involving academy and independent experts.
Local Access of Project Documentation
Contact Person: Diego Fernando Rubio.
Company Name: Enel Colombia S.A E.S.P.
Address: Calle 93 #13 – 45 Bogotá, Colombia.
Email: diego.rubiom@enel.com
Phone: +57 601 5147000
Facsimile: N.A.
| S.no | Description | Anticipated Completion Date | Status |
|---|---|---|---|
| 1 | Enel Grids Colombia, for the purpose of the Use of Proceeds of the financing, will implement the operational instruction(s) that addresses the gaps related to its environmental and social policies and procedures in line with IFC’s PS and WBG EHS guidelines, to address all applicable PS requirements. This will include building E&S capacity where needed including training to implement needed PS requirements. | 12/31/2024 | Completed |
| 2 | Enel Grids Colombia will develop and integrate a social management processes into GRIDS corporate Management System in line with PS1, including consideration of the following: (i) development of operating procedures to identify and address social risks of all their operations that also meet PS1 besides local regulations; (ii) adequate assessment of project's area of influence (AOI) in line with PS1 and based on identified risk and impacts ; (iii) development of the required corporate social policies, plans, and procedures (e.g., Stakeholder Management Plan) as part of the corporate ESMS; and (iv) measures to ensure adequate capacity and internal alignment to implement those plans detailing roles, responsibilities, and accountabilities. These processes will be implemented through operational instruction(s). | 12/31/2024 | Completed |
| 3 | Enel Grids Colombia will develop a procedure – including ToRs - for conducting PS-compliant integrated ESIAs for project activities including the assessment of cumulative impacts and any needed mitigation measures in line with Good International Industry Practice (GIIP). For all pipeline assets to be funded by IFC which are subject to an EIA process, and which have already undergone a national EIA process, Enel Grids Colombia will conduct a facility wide E&S due diligence (ESDD) against applicable IFC PS including implementation of corrective actions where required. | 05/31/2027 | Pending |
| 4 | Enel Grids Colombia, for the purpose of the Use of Proceeds of the financing will update its risk monitoring and audit system and program to incorporate the quantitative and qualitative requirements of the IFC PS and WBG EHS Guidelines. | 09/30/2024 | Completed |
| 5 | Enel Grids Colombia will ensure the management of labor complaints is aligned with PS2 requirements including to develop an adequate register for all complaints received by the Community Committee and official channels established by P&O, including number of complaints and response times. Likewise, Enel Grids Colombia will ensure training processes for the Community Committee personnel and P&O leaders regarding GBVH with a survivor-centered approach implemented by specially trained personnel. | 12/31/2026 | Pending |
| 6 | ENEL Grids Colombia will update/develop specific procedures aligned to PS4 to ensure community health and safety in all their work fronts and operations; and to address concerns, raise awareness, and disseminate relevant communication with communities and other stakeholders, related to the safety risk and measures in concordance with the Stakeholder Engagement Plan. The procedures will pay particular attention to potentially affected vulnerable people living in households adjacent to new areas in construction stages. These processes will be implemented through operational instruction(s). | 12/31/2024 | Completed |
| 7 | Enel Grids Colombia will ensure its Security Forces Management Plan is in line with PS4 and according to principles of proportionality and good international practice, including monitoring and verification that security contractors are constantly training security personnel on Human Rights principles to avoid potential harm to employees, communities, and other stakeholders. This plan should include specific means to (i) carry out an adequate assessment of security risks and effective responses; (ii) screening criteria for the recruitment of guards and appropriate engagement with the public forces; (iii) training on prevention and management of GBVH; and (iv) and protocols to manage grievances related to incidents associated with security guards’ actions. | 06/30/2024 | Completed |
| 8 | Enel Grids Colombia will develop operative instructions for evaluating land use and implementing land acquisition, resettlement, and livelihood restoration in alignment with IFC PS5 to mitigate any impacts of future planned land acquisition on affected people in the projects to be financed by IFC. Operative instructions will consider particular attention to vulnerable people, including a socioeconomic survey of all land users to identify and address potential economic/physical displacement, means to ensure stakeholder engagement, and an external grievance mechanism to address complaints associated with land acquisition and involuntary resettlement | 12/31/2026 | Pending |
| 9 | Enel Grids Colombia, where required for the purpose of the Use of Proceeds of the financing, will update and enhance their existing External Grievance Mechanism to distinguish complaints related to their services from those related to their operational activities, and will include a) channels to allow confidential and anonymous submission and those specific for Gender-Based Violence and Sexual Harassment risks; b) measures to reinforce its disclosure and dissemination among communities; and c) corrective actions to ensure all grievances are adequately tracked and logged, centralized; analyzed and reported. | 12/31/2024 | Completed |
| 10 | Enel Grids Colombia will engage the appropriate KBA/IBA responsible stakeholder (e.g. Asociacion Calidris for IBAs), regarding any overlaps of Enel Grids Colombia’s IFC-financed projects with KBA/IBA (seven IFC-financed sub-projects), in order to a) confirm and document that any such overlaps are legally permitted and designed and managed in a manner consistent with any government-recognized management plans for these areas. This will not apply to projects located in anthropized areas, and b) Analyze the scope, develop, and implement additional programs to promote and enhance the conservation aims of these areas in line with the approved management tools, to the extent that Enel Grids Colombia’s IFC-financed projects have the potential to generate adverse impacts on the biodiversity values for which these KBA/IBA were established. Enel Grids and IFC will define the specific projects for which this action will apply. | 12/31/2026 | Completed |
| 11 | For the relevant IFC-financed projects with potential impacts to Natural Habitat, per PS6, Enel Grids Colombia will conduct a gap analysis between national/state biodiversity/deforestation compensation requirements and PS6 requirements regarding the satisfaction of the “No Net Loss” (NNL) mitigation standard. If any gaps are identified, Enel Grids Colombia will implement additional mitigation to fill them, ensuring that any deforestation of natural forests, or other impacts to Natural Habitats are mitigated to comply with PS6 in addition to national/state requirements. Enel Grids and IFC will define the specific projects for which this action will apply. | 12/31/2026 | Pending |
| 12 | Enel Grids Colombia will contract a qualified external consultant to perform a review of wildlife electrocution and collision risks on the new projects to be financed by IFC which include the construction of new medium and high voltage networks, according to the design standards established by Enel for the construction of these projects, and their applicability according to the environment (intervened areas or wooded areas). The ToR of this review should include a requirement for the expert to include within his/her final report a set of recommendations for Enel Grids Colombia to reduce these wildlife-related risks on its infrastructure, prioritized by potential for reducing wildlife-related impacts (i.e. measures with the greatest potential for reducing wildlife impacts ranked highest). Enel Grids Colombia should then implement these recommendations, taking into account a technical and economic feasibility analysis. | 12/31/2026 | Pending |
| 13 | Enel Colombia will develop and implement a robust Stakeholder Engagement Plan to ensure the ongoing processes of stakeholder analysis and mapping, social monitoring, informed consultation, and participation, adequate disclosure of information, and ongoing reporting to affected communities in specific regarding the management of risk and impacts of the Company operations. The Plan will include a strategy to address specific concerns and perceptions about electromagnetic radiation, implement participatory monitoring mechanisms, and reinforce key messages involving academy and independent experts. | 12/31/2024 | Completed |


