The Enel Circular Procurement strategy aims to improve the circularity of products and services we buy through a three-step approach:

1. Definition of metrics and KPIs: quantify, assess and validate Environmental KPIs deriving from the lifecycle of a product (e.g. smart meters, wind turbines, etc) through the EPD (Environmental Product Declaration) system

2. Implementation of K factors: Rewarding the suppliers through tender-specific instruments for their commitment in transition towards the Circular Economy — for example, in 2019 Enel implemented a K factor to reward suppliers that carry out projects related to alternative use of waste produced

3. Co-innovation: launch co-innovation projects together with suppliers in order to review the lifecycle of products and change the purchasing methods according to circular economy — for example, in 2019 Enel X started a project with suppliers to reuse for maintenance activities the spare parts recovered at the end of life of EV recharging infrastructure