Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Energy Efficiency
• Safety
• Human Rights
• Community Engagement
• Environmental Protection
• Research, Development, and Innovation (R&D&I)

Environmental Achievements

• Reduced electricity consumption by minimizing environmental impact and optimizing costs.
• Decreased methane gas emissions from leaks by implementing online platform INKOLAN for work contractors.
• Reduced paper consumption through electronic billing and use of Forestry Certification System.
• Installed solar panels in 84 RMS, avoiding CO2 emissions.
• Reduced fuel consumption per kilometer of network.

Social Achievements

• Launched new corporate identity with focus on sustainability and innovation.
• Implemented Lean methodology for continuous improvement, involving 50% of the workforce.
• Launched "Viva Nuestra Energía!" educational program on energy and sustainability for over 13,000 students.
• Implemented work-life balance program, obtaining the Family Responsible Company Certificate (EFR).
• Reduced accident rates among workers.

Governance Achievements

• Implemented Code of Ethics and Ethics Channel for reporting breaches.
• Conducted strategic skills assessment for management and team leaders.
• Implemented a single training plan for all Naturgas Energía companies.

Climate Goals & Targets

Environmental Challenges

• Decreased demand for natural gas due to economic downturn and warm winter.
• Increased competition in the non-regulated market.
• Regulatory changes at national and European levels.

Mitigation Strategies

• Implemented active price hedging policy.
• Diversified customer portfolio.
• Implemented stricter risk control and efficient management of operating costs.
• Expanded into new market zones.
• Offered dual gas and electricity products with value-added services.
• Optimized regasification contracts and transport costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All investors are required to abide by the Naturgas Energía Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Potential new legislation and technological changes related to climate change.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001

Third-party Assurance: DNV (A+ rating)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Family Responsible Company Certificate (EFR)
• Solidarity Company prize at ASPANOVAS awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energies
• Energy Efficiency
• Sustainable Mobility
• Access to Energy
• Social Investment
• Employee Well-being
• Ethical Conduct
• Governance
• Supply Chain Sustainability
• Biodiversity

Environmental Achievements

• Reduced specific CO2 emissions from 0.257 tCO2/MWh in 2018 to 0.216 tCO2/MWh in 2019.
• Avoided emissions amounted to 24.7 Mt CO2 in 2019.
• Installed more than 90,000 photovoltaic modules in Portugal, generating around 25 GWh of solar energy and avoiding 123 thousand tonnes of CO2 emissions.
• 96% of waste materials were recovered.

Social Achievements

• 77% customer satisfaction index.
• Increased investment in energy efficiency initiatives in Brazil (R$ 25.8 million), leading to savings of 26 GWh/year and R$ 9.12 million for end customers.
• Launched Save to Compete 2.0 project, digitalizing the sale of energy services for the business segment.
• Invested 2.7 million Euros in Rensource, a solar energy company in Nigeria.
• Supported five clean energy community projects in Mozambique, Kenya, Tanzania, Malawi, providing access to energy for 22,000 people.

Governance Achievements

• Obtained a score of 90 points on the Dow Jones Sustainability Index (DJSI), the best score ever.
• Issued approximately 3 billion Euros of Green Bonds.
• Implemented a new global model for performance assessment, aligning objectives and recognition more clearly.
• Strengthened its ethical culture through the “RAISING THE ETHICAL” program.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events, droughts).
• Wholesale market design challenges (marginal remuneration system not adjusted to growing renewable energy penetration).
• Growing penetration of distributed resources.
• Cybersecurity risks.
• Energy poverty.
• Taxation asymmetries between Portugal and Spain.

Mitigation Strategies

• Diversification in technology, geographical area, and business area.
• Focus on long-term contracts.
• Proactive role in commercializing innovative products and solutions.
• Active regulatory management.
• Continuous improvement of internal systems and security measures.
• Investment in access to energy projects.
• Advocating for greater fiscal convergence in energy taxation between Member States.

Supply Chain Management

Responsible Procurement

• EDP Supplier Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Technological changes
• Market shifts

Opportunities

• Investment in renewable energy
• Energy efficiency services
• Electric mobility solutions

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 14001:2015, ISO 45001, ISO 27001

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

EDP's initiatives contribute to these goals through renewable energy generation, energy efficiency, sustainable mobility, access to energy, and climate action.

Sustainable Products & Innovation

• Solar panels
• Electric vehicle charging solutions
• Energy efficiency services
• Hydrogen generation technology

Awards & Recognition

• Dow Jones Sustainability Index (DJSI) leadership position.
• Green Bond Pioneer award.
• Consumer Choice 2019 award.
• Best in-person service award (Spain).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Decarbonization
• Energy Efficiency
• Sustainable Mobility
• Governance
• Human Rights
• Social Impact
• Supplier Management
• Innovation
• Digital Transformation
• Customer Experience
• Health and Safety
• Diversity & Inclusion

Environmental Achievements

• Reached 75% of generated energy from renewable sources.
• Closed the Sines coal power plant.
• Reduced scope 1 and 2 CO2 specific emissions by 51% compared to 2015 levels.
• Reduced scope 3 CO2 emissions by 30% compared to 2015 levels.
• Secured 8.4 GW of renewable capacity.
• Installed 2.6 GW of new renewable capacity in 2021.
• Achieved 19.6 GW of renewable installed capacity (80% of total capacity).

Social Achievements

• Launched 'solidarity solar communities' initiative.
• Celebrated the 10th anniversary of its Volunteering Program, impacting over 1.7 million people.
• Recognized by the Bloomberg Gender Equality Index.
• 40% female participation in EDP’s Executive Board of Directors.
• Improved decision-making processes to promote efficiency, agility, and delegation.
• Launched the "PlayitSafe" program to improve safety.

Governance Achievements

• Revised social impact strategy with fair energy transition as the overarching theme.
• Revised its Executive Board of Directors Remuneration Policy, reinforcing ESG metrics.
• Shareholders approved a new composition of the General and Supervisory Board with 9 independent members and diverse gender and nationalities.
• Established a dedicated health and safety corporate area.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• Volatile energy prices and rising inflation.
• Pandemic.
• Reducing scope 3 emissions.
• Climate events (e.g., drought in Brazil, extreme weather in Portugal).
• Seven fatalities with contractors’ workers.

Mitigation Strategies

• Bold investment plan of €24 billion by 2025.
• Geographical and business diversification.
• Long-term contracts.
• Hedging of main exposures.
• Asset rotation transactions.
• Risk management processes.
• Crisis management and business continuity plans.
• Preventive maintenance and inspection.
• Comprehensive insurance policies.
• Fraud prevention programs.
• PlayitSafe program for safety improvement.
• Collaboration with peers and global organizations on supply chain sustainability.

Supply Chain Management

Supplier Audits: 6,395 third parties analyzed under third-party integrity due diligence procedure in 2021

Responsible Procurement

• Supplier Code of Conduct
• Due Diligence obligations in supplier selection
• Program to engage direct suppliers with decarbonization, transparency, and equality goals.

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures
• Rising sea levels
• Water availability
• Wind availability
• Extreme weather events

Transition Risks

• Regulatory and legal risk
• Market risk
• Technological risk
• Reputational risk

Opportunities

• Sustainable energy-related economic growth
• More resilient and clean energy system
• Lower fuel prices and cheaper renewables
• Development of energy-efficient products
• Green hydrogen
• Energy storage

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13
• SDG 5
• SDG 8
• SDG 12

EDP's strategy contributes to clean and affordable energy, industry, innovation, sustainable cities, climate action, gender equality, decent work, and responsible consumption and production.

Sustainable Products & Innovation

• Decentralized solar generation solutions
• Electric mobility solutions
• Energy efficiency services
• Green hydrogen
• Energy storage

Awards & Recognition

• World’s most sustainable electric utility by the Dow Jones Sustainability Index
• One of the most ethical companies in the world by the Ethisphere Institute
• EDP Brasil ranked first in the corporate sustainability index of the Brazilian stock exchange
• Included in the S&P Global Clean Energy Index
• TOP Employer in Portugal
• European TOP Employer certification

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Renewable Energy
• Community Empowerment
• Circular Economy
• Occupational Health and Safety
• Digitalization
• Innovation

Environmental Achievements

• Thermal generation decreased by 54% compared to 2022.
• Renewable energy capacity reached 86%.
• Scope 1 & 2 Emissions Intensity decreased by 50% compared to 2022.
• Total freshwater withdrawn decreased by 50% compared to 2022.
• Total freshwater consumed decreased by 59% compared to 2022.
• Total waste materials decreased by 31% compared to 2022.
• Total recovered waste materials increased to 96%.

Social Achievements

• Launched "Playitsafe" program to improve occupational health and safety.
• Increased female employees to 29%.
• Total Investment in social investment increased by 8% to €34,175 th.
• Increased number of EDP volunteers by 7% to 4,426.

Governance Achievements

• New Remuneration Policy aligned with best practices.
• Executive compensation linked to ESG performance.
• Strengthened General Supervisory Board with improved gender and independence diversity.

Climate Goals & Targets

Environmental Challenges

• Severe drought in 2022 impacting hydropower generation.
• Increased accident frequency rate to 2.07 in 2023.

Mitigation Strategies

• Implementation of the "Playitsafe" program to improve occupational health and safety.
• Continued focus on renewable energy sources to mitigate reliance on thermal generation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science-Based Targets initiative (SBTi), EU Taxonomy

Certifications: ISO 14001

Sustainable Products & Innovation

• Participation in APOLLO project for circular PV recycling

Awards & Recognition

• Most sustainable electric utility by S&P Global CSA