Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Health and Safety
• Ethics
• Innovation
• Human Capital Development
• Social Support
• Stakeholder Management
• Waste Management
• Risk Management

Environmental Achievements

• Avoided the emission of about 20.1 million tons of CO2 by producing 24.5 TWh of clean electricity.
• Reduced Core Opex/MW by 5% year-on-year.

Social Achievements

• Ranked among the 50 best companies to work in Spain and Poland by Great Place to Work.
• Invested 1.1 million euros in more than 150 community initiatives.
• Delivered 44,350 training hours (41 hours per employee), with 100% of employees receiving training.

Governance Achievements

• Implemented a Stakeholder Management Plan in Spain.
• Established an Ethics Ombudsman and Ethics Committee to handle ethical concerns.
• Developed an Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Below-average wind resources in 2016.
• Depressed power prices in wholesale markets due to high renewable energy penetration.
• Ineffective EU Emissions Trading System.
• Lack of long-term price signals for renewable energy investments.

Mitigation Strategies

• Electricity price hedges to shelter revenues from unfavorable price movements.
• Asset rotation program to leverage cash flow generation and fuel additional growth opportunities.
• Consistent lowering of the cost of debt.
• Diversification into solar and offshore wind technologies.
• Unique O&M strategy to reduce costs and maintain high technical availability.

Supply Chain Management

Responsible Procurement

• Alignment of suppliers with EDPR's Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Meteorological changes

Transition Risks

• Regulatory risk (renewables)
• Changes in energy markets

Opportunities

• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

EDPR's initiatives contribute to these goals through renewable energy production, job creation, infrastructure investments, community development, and climate change mitigation.

Awards & Recognition

• Great Place to Work ranking in Spain and Poland
• Responsible Family Employer Certification (EFR)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Health & Safety
• Community Investment
• Employee Well-being
• Governance
• Ethics
• Supply Chain Sustainability

Environmental Achievements

• Avoided the emission of 22,051 thousand tons of CO2
• Reduced number of accidents with absence for employees and contractor personnel by 40%
• 91% of EDPR’s installed capacity certified under OHSAS 18001
• Implemented a Forest Fire Prevention Plan
• 88% hazardous wastes recovered (excluding accidents)
• Working with a startup to develop a wind turbine blade recycling program

Social Achievements

• Reduced number of accidents with absence for employees and contractor personnel by 40%
• Invested c. €2 million in community initiatives
• Launched several employee well-being initiatives (Sport Aids, Flexible Work, Book Club, Energy School Kit)
• 71% of new Directors hired internally
• 99% of employees received training (35 hours per employee)
• Improved injury rate by 49% and lost work day rate by 59%

Governance Achievements

• Implemented a new planning methodology based on a single tool and integrated process
• Completed a Stakeholder Management Plan cycle
• Updated Anti-Corruption Policy
• Maintained high levels of transparency and accountability

Climate Goals & Targets

Environmental Challenges

• Regulatory uncertainty in some geographies
• Challenges in the deployment of distributed generation
• Increased competition, including from non-utility players
• Lack of techniques to recycle wind turbine blades
• Natural disasters (Hurricane Harvey, fires in Portugal)

Mitigation Strategies

• Actively managing regulatory risks in collaboration with key stakeholders
• Diversifying portfolio to ensure growth opportunities
• Developing alternative sourcing strategies
• Investing in partnerships with local communities for forest fire prevention
• Providing support to communities affected by Hurricane Harvey

Supply Chain Management

Supplier Audits: 73 audits on contractors regarding OH&S issues

Responsible Procurement

• Sustainable Procurement Policy
• Code of Conduct for Suppliers
• Alignment with UN Global Compact principles

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Forest fires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy sector
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

EDPR's renewable energy production contributes to these goals

Sustainable Products & Innovation

• Floating solar plant
• Hybrid wind-solar-storage generator

Awards & Recognition

• Ranked among the 50 best companies to work in Spain and Poland

Environmental Metrics

ESG Focus Areas

• Climate change
• Economic business sustainability
• Health & Safety
• People management
• Corporate governance
• Suppliers management
• Community engagement
• Innovation
• Environmental management
• Ethics and Compliance
• Communication and transparency
• Digital transformation

Environmental Achievements

• Avoided the emission of 18.5 million tons of CO2
• 94% recovery rate of hazardous waste (above the 90% target)
• Morphological (22 hectares) and vegetal (28 hectares) restoration of the Zas wind farm in Spain

Social Achievements

• Launched the Mind Your Mind campaign to raise awareness regarding mental health
• Created a wellness platform to promote healthy habits
• Awarded with the level of excellence in the Responsible Family Employer Certification (EFR)
• Entered the Bloomberg Gender Equality Index for the first time in 2020

Governance Achievements

• Implemented a new procedure regarding Third Party Integrity Due Diligence
• 100% of EDPR’s installed capacity covered by ISO 45001 certification by the end of 2020
• Implemented the new Health, Safety and Environment Management System (HSEMS), jointly certified by an independent certifying organisation

Climate Goals & Targets

Environmental Challenges

• Meteorological changes may pose a risk for EDPR’s activities and results
• Relevant unexpected meteorological changes could lead to lower production than expected
• Renewable plants in construction and in operation are exposed to weather hazards, natural disasters, etc.

Mitigation Strategies

• All plants are insured from physical damage during construction and operation
• Natural disasters, weather hazards or accidents are partially insured to revenue losses

Supply Chain Management

Supplier Audits: 1,262 inspections to 156 suppliers (EHS) in EU&BR; 72 inspections to 10 suppliers (environmental) and 194 inspections to 20 suppliers (H&S) in NA

Responsible Procurement

• Procurement Policy with requirements related to Sustainability, Quality, and Risk management
• Supplier Sustainability Guide (Europe & Brazil)
• Supplier Qualification Process
• Compliance questionnaires related to anti-corruption practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Transition Risks

• Meteorological changes impacting production forecasts

Opportunities

• Delivering clean energy; creating business opportunities by fighting against climate change

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact

Certifications: ISO 45001, ISO 14001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Wind energy
• Solar energy
• Energy storage plants
• Floating offshore wind farms
• Green hydrogen
• Hybrid power plants

Awards & Recognition

• Bloomberg Gender Equality Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Biodiversity
• Human Rights
• Community Engagement
• Governance

Environmental Achievements

• Avoided the emission of 20.4 million tons of CO2 in 2023.
• Recovered 72% of total waste generated and 92% of hazardous waste.
• Launched the "Close the Loop" program in partnership with SOLARCYCLE to recycle solar panels.

Social Achievements

• Invested €2.4 million in supporting communities.
• 1,339 employees (27%) participated in volunteering activities.
• Recognized as a Top Employer in 9 countries, including Greece and Colombia for the first time.

Governance Achievements

• Reformed EDPR’s Board, reducing its size, electing an Independent Chairperson, and increasing the representation of Independent Directors and women.
• Established a new committee dedicated entirely to ESG.
• Updated EDPR’s Remuneration Policy aligned with ESG best practices.

Climate Goals & Targets

Environmental Challenges

• Rising inflation and interest rates.
• Inadequate permitting processes.
• Supply chain restrictions impacting solar panel deliveries.
• El Niño effect generating a below-average wind resource.
• Contracyclical windfall energy taxes in Europe.
• Delays in grid connection permitting for wind projects in Colombia.
• Unexpected solar panels supply chain bottlenecks in the US.

Mitigation Strategies

• Continuously monitoring supply chain and permitting processes.
• Balancing the mix of merchant and long-term contracted revenues.
• Prioritizing long-term contracted and hedged revenues (90% secured in 2024).
• Reconfigured the US solar supply chain.
• Renegotiated PPAs.
• Proactively managing the development of wind projects in Colombia.
• Driving efficiency and optimization of CAPEX and OPEX.

Supply Chain Management

Supplier Audits: ESG evaluations to more than 75% of critical suppliers; 522 Compliance analyses performed.

Responsible Procurement

• EDP Supplier Code of Conduct
• Sustainable Supply Chain Policy
• Sustainable Procurement Protocol
• Third-Party Integrity Due Diligence Procedure

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting production and assets.

Transition Risks

• Potential misalignment between regulatory risk on energy market design and international commitments for climate transition.

Opportunities

• Growth in renewable energy sector.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, ISO 37001, UNE 19601:2017

UN Sustainable Development Goals

• 5, 7, 8, 9, 11, 12, 13, 15, 17

EDPR's social investment programs and operations contribute to these SDGs.

Sustainable Products & Innovation

• Hybrid solar and wind energy plants
• Vanadium Redox Flow Battery Energy Storage Systems

Awards & Recognition

• 4th in Corporate Knights’ 2024 Global 100 List
• Top Employer in 9 countries