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ESG ratings

To sustain our performance

As consumer demand for clean energy grows, demonstrating sustainability fosters customer loyalty and strengthens our green focused positioning.
Presenting sustainable performance is vital for regulatory compliance, attracting green investments, and building a positive reputation. It aligns the company with environmental laws and helps secure financing from ESG-focused investors. 

About ESG ratings

ESG Ratings are assessments given to companies or financial instruments based on their adherence to ESG criteria. The current major challenge faced by companies is the quality and comparability of these ratings. ESG ratings have gained increasing influence in global capital markets, as investors, borrowers, and issuers rely on them to make well-informed, sustainable investment and financing decisions. 
ESG ratings are used as inputs for EUR 3,787 billion (i.e 48% of total assets under management), according to ESMA ESMA Call for evidence on market characteristics of ESG Rating, June 2022.

The Proposal for a regulation of the European Parliament and the Council on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities aims to enhance the reliability and comparability of ESG ratings by introducing a common regulatory approach to improve the transparency and integrity of ESG ratings providers' operations and prevent potential conflicts of interest. 

Some aspects of the new ESG rating regulation: a) Under the new regulation European Securities and Markets Authority (ESMA) will be responsible for developing the secondary legislation/ Regulatory Technical Standards (RTS) which will further clarify the responsibilities of authorised ESG Ratings providers under the new regime; b) Providers must publish on their website the methodologies, models and key rating assumptions they use in their ESG rating activities.

ESG Scores

ESG scores are an essential tool for EDP, facilitating the measurement of the company’s ESG risk, ESG performance and long-term ESG value creation, contributing to the continuous improvement of its operations, and fostering trust and confidence among investors and other stakeholders. We follow the ESG rating providers which allow us to disclose the ESG ratings/scores on the table below.

Results of the sustainability assessment (1)

ESG Rating ProvidersScaleScoreRankingPublication of results
S&P Global Corporate Sustainability Assessment0-100862nd position in electric utilities18th November 2024
CDP Climate Change"D-" to "A"A Listn.a.January 2024
CDP Water Security"D-" to "A"A- Listn.a.January 2024
Sustainalytics100-018.2 (low risk)n.a.June 2024
MSCI (M SCI ESG)CCC - AAAAAATop 11%November 2024
ISS ESG Ratings (QS - Quality Score)10-1E&S:! | G:2n.a.September 2024 | July 2024

(1) The ratings are independent and, as such, there should be no comparison.

n.a. - not applicable.

In the last few years, several ESG rating providers have published ESG ratings on their websites without any paywall. S&P Global, MSCI, Sustainalytics and CDP are some examples of those practices.

Peer ESG rating overview

ESG Ratings EDPTernaIberdrolaEnelÖrsted
S&P Global   8683858358
MSCI                                    AAAAAAAAAAAAAA
MSCI Temperature Rise1.3ºC 1.4ºC 1.3ºC1.3ºC1.4ºC
Sustainalytics18.27.916.318.815.6
CDP Climate Change The A ListA-AA-A

Check also the information for non-ESG rating agencies

EDP is recognized as the most sustainable electric utility in the world by S&P Global CSA​​​​​​ (1)

This pathway started in 2003 when the company talked about the triple bottom line, i.e., environment, society, and economy, the three pillars of sustainable development. EDP’s board recognized this year as the “year zero” of the commitment towards sustainability. Since then, EDP has defined several sustainability strategies that have pushed the company to the path of change and a transition to a more sustainable business model recognized by several ESG rating providers, such as S&P. They recognized EDP as a company with capacity to proper in a competitive world and adapt the business model to anticipating and managing current and future environmental, social, and governance & economic (ESG) opportunities and risks. They also identified EDP as a company that is focusing on quality, innovation, and productivity to create competitive advantage and long-term value.

EDP has strengthened its leadership position by achieving the highest performance in the S&P Global ESG Scores 2023 in a list of 257 companies worldwide. With a score of 88 points (as of November 24th), EDP stands out as the most sustainable electricity company globally, a position it has held for the third time in the last ten years. This result allows EDP to be part of the eligible universe in Dow Jones Sustainability Indices (DJSI) and to be included for the 16th consecutive year in the DJSI World, and in DJSI Europe for the 14th year. Check here for details about S&P Global ESG Scores and here for details about DJSI Annual Review 2023.

EDP has once again been recognized globally for its outstanding sustainability practices, receiving a score well above the electric utilities sector average of 34 points. Out of the 26 criteria analyzed until November this year, EDP scored 100 points ("Best in Class") in four of them: climate strategy, innovation management, market opportunities, and business ethics.

Our top-scoring criteria (in points)

100
Business ethics
100
Innovation management
100
Market opportunities
100
Climate strategy

Content card grid

DJSI 2022
By December 16, 2022, EDP scored 90 points in the S&P Global Corporate Sustainability Assessment, the second-best score in 15 years: #1 among integrated utilities and #3 overall. For more details, visit the S&P Global site.
Out of 27 criteria, EDP excelled in 8, scoring 100 points each: Market Opportunities, Water Related Risks, Innovation Management, Materiality, Policy Influence, Environmental Reporting, Social Reporting, and Corporate Citizenship/Philanthropy. The most improved criteria are Innovation Management, Transmission & Distribution, and Occupational H&S; the least improved are Electricity Generation and Operational Eco-efficiency.
On December 9, EDP was selected for the DJSI World and Europe indices. This highlights EDP's leadership in ESG aspects.
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DJSI 2021
With its highest-ever score, EDP stood out among 103 electric utilities and is the only Portuguese company in this global sustainability index for 14 consecutive years. Scoring 91/100, three points higher than last year, EDP achieved its best result since 2004, rising 42 points since then. EDP has also been part of DJSI Europe for 12 years.
The strongest ESG areas were Governance & Economic (+7 points) and Social (+4 points). EDP ranked in the top 2 for environment, top 3 for governance & economic, and top 4 for social. In 8 out of 27 criteria, EDP achieved the maximum score, being “Best in Class.”
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DJSI 2020
The Dow Jones Sustainability Index (DJSI) has once again recognized EDP as one of the global companies with the best sustainability practices. In addition to being the only Portuguese company to be included in this benchmark index for 13 consecutive years, EDP obtained a final score of 88 points (out of 100), which places it among the two best integrated utilities in the world.

EDP was also distinguished as 'Best in Class' in ten of the 27 criteria – one more compared to the previous year – thus confirming its good practices in areas as diverse as climate action strategy, water resources risk management, environmental reports and social, supply chain management, citizenship, stakeholder engagement or human rights.
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DJSI 2019
We are number 1 in the world on the Dow Jones Sustainability Index with our best score ever. EDP achieved 90 points, securing the top spot among utilities in the index.

As the only Portuguese company included for 12 consecutive years, sustainability is at the core of our activity. This consistent inclusion acknowledges EDP's commitment to sustainable development and its execution across various sustainability areas.

EDP achieved the maximum score (100 points) in 9 criteria: water risk management, climate change, environmental reporting, social reporting, human rights, community development, stakeholder involvement, responsible political participation, and materiality analysis.
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DJSI 2018
Sustainability indexes are crucial for EDP as they quantify sustainability performance, drive continuous operational improvements, and align the business with market trends and challenges.
This index rigorously evaluates companies' sustainability performance and market trend adaptation. EDP scored 85 points, 4 points lower than in 2017, yet 39 points above the industry average. EDP excelled in the social dimension with the industry's highest score of 89 points.
In the integrated utilities category, EDP dropped from first to second, and in the global electrical industry ranking, from second to fourth. Contributing to this drop were criteria like Customer Relationship Management and Operational Eco-Efficiency.
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DJSI 2017
In 2017, EDP achieved a score of 91 (more 2 points than in 2016), 41 points above the average score of electric utilities. Thus, maintaining its position in the World Index for the 10th consecutive year and was selected by RobecoSAM to be part of DJSI Europe, where mark position for 8 years.


EDP, significantly improved the score in the environmental dimension by 9 points (in 2017 scores 91 points). The average score of electric utilities is 46 points. In the remaining dimensions the score was:


economic; 89 (-3 comparing to 2016) - the average score of electric utilities was 51.

social: 94 (-2 comparing to 2016) - the average score of electric utilities was 53.



This year, 2,086 listed companies were analyzed. 320 were included in the global index and 149 in the Europe index.
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DJSI 2016
In 2016, EDP increased its score to 89 (against 83 in 2015), maintaining its position in the World Index for the 9th consecutive year. This year, 1,986 companies from the S & P Global BMI stock exchange were analyzed and less than 16% were included in the global index.
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DJSI 2015
EDP was included for the 8th consecutive year in the Dow Jones World Sustainability Index.

In 2015, 3,375 companies from the S&P Global BMI stock exchange were invited for analysis and less than 10% were included in the final index.
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DJSI 2014
In 2014, EDP was included for the 7th consecutive year in the Dow Jones Sustainability Index (DJSI) with 88 points, being considered the leading corporation in the Utilities Industry Group: Electricity, Water and Gas.

In the economic dimension with 89 points, EDP holds the top score (100 points) in the criteria Price Risk Management, Risk & Crisis Management and Scorecards / Measurement Systems.

In the environmental dimension, apart from Biodiversity, a criterion in which EDP attained the highest score, the Water Related Risks criterion achieved significant improvement, attaining 100 points.

The company maintained its score in the social dimension, as well as in leadership of the Human Capital Development criterion.
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DJSI 2013
EDP is a Utilities world leader in the Dow Jones Sustainability indexes (DJSI). For the 6th consecutive year it is included in the DJSI World and Europe sustainability indexes.

In 2013, EDP is leader of Utilities: Electricity, Water and Gas, with the highest score for this index so far: 90 points.

In the Economic Dimension, EDP earned 91 points, one point below the leader. It obtained the best score (100) in the criteria for Price Risk Mangement, Risk & Crisis Management </i>and<i> Scorecards/Measurement Systems.

In the Environmental Dimension, it obtained the highest industry score (89 points) with the top score (100) for Biodiversity.

In the Social Dimension, with 90 points, it leads the industry with respect to Human Capital Development (100).
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DJSI 2012
EDP at the top of global sustainability

For the 5th consecutive year, the Group ranks among the electricity companies with the best performance in the Dow Jones Sustainability Indexes.

In 2012, EDP holds a high-performing position in the Dow Jones Sustainability Index, at both world and European levels, so appearing among the most sustainable power companies. In a world in which the average evaluation in 2012 was 61 points, the company achieved the highest rating ever with 87 points, equaling the leader of the electrical sector and of the supersector of utilities.

In areas such as integrated risk management; management control systems; biodiversity; the development of human capital; engagement with stakeholders and involvement with society in terms of corporate citizenship, it obtained
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DJSI 2011
For the second consecutive year, EDP is world leader in the Dow Jones Sustainability Index in the Electricity Companies Sector.
For the fourth year, EDP is present in the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Europe Index (DJSI Europe), maintaining its position for the second consecutive year as a global leader in the Electricity Sector.
This year, the company achieved a rating of 86 points, increasing its rating by 2 points with respect to 2010 and being a world leader in the Social Dimension.
In the Economic Dimension, EDP continues to be one of the best companies in the sector.
The maintenance of the maximum score in the Risk & Management criterion deserves emphasis.
Of a set of 22 criteria, EDP obtained best practice for 10 of these.
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DJSI 2010
EDP is a world leader in the Dow Jones Indexes of Sustainability among companies in the Electricity Sector. For the third year in a row, EDP is included in the Dow Jones Sustainability World Index and the European Dow Jones Europe Index.

EDP is the first Portuguese company to be a world leader in the Dow Jones Sustainability Indexes. The company maintained a prominent position in the leadership of Sustainable Development practices and is, for the first time, Best in Class in the Social Dimension.

It retains its leading position in the Social Dimension, for the first time being considered as Best in Class, reaching 89 points (4 more points than in 2009). It stands out in maintaining the maximum score in the criteria of Human Capital Development, Stakeholder Engagement and Social Reporting.
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DJSI 2009
In 2009, EDP was selected for the second consecutive year for inclusion in the World and STOXX Dow Jones Sustainability Indexes and so became one of the top 13 companies in the electricity sector in the world and one of the 7 best companies at the European level.
EDP substantially improved its score, with an increase of about 9% compared to 2008 and reduced its distance from the new leader in the global sector, which leads it by only 2 points. EDP reached 100% in 6 of the 21 criteria evaluated: Risk Management, Price Risk Control, Score Card Systems, Stakeholder Engagement, Development of Human Capital and Environmental Reporting. EDP was still considered the best company in Biodiversity (98%) and Electricity Production (92%). The best practices are evaluated based on 21 criteria.
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FAQs

The inclusion of a company in these indexes brings it many benefits, both of a tangible and intangible nature. In addition to a public recognition of leadership in strategic areas of economic, environmental, and social dimensions, there is also the important recognition by those who are using ESG data, like asset owners, asset managers, regulators, and banks.

In general terms, it gives us brand reputation, contributes to reinforcing employee relations, retains talent and improves our stakeholder relations. In particular, the effort of entering the Dow Jones Sustainability Indexes also allows the design of clear and precise objectives in terms of sustainable operations.

The constant evaluation of the company and the updating of the criteria creates undeniable rigor in all areas of operations for the Group.

The company’s practices, assessed for inclusion in indexes, include such areas as:

  • Value Creation (creating value for the Shareholder, increase in productivity and efficiency; commitment to focusing on the Client);
  • Efficient use of resources;
  • Environmental and Biodiversity Protection;
  • Integrity;
  • Dialogue with stakeholders (open and transparent relationships with clients, investors, suppliers, and employees; credible reporting on the company’s performance in all areas);
  • Human Capital Management (implementing systems to ensure the health, safety and welfare of employees, the promotion of the development of capabilities, and the rejection of abusive and discriminatory practices);
  • Promoting access to energy;
  • Support for Social Development.

S&P Global is the world’s foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets. S&P Global divisions are: S&P Global Ratings; S&P Global Market Intelligence; S&P Global Platts; S&P Dow Jones Indices. More details here.

S&P Global is responsible for the identification of companies that lead compared to their peers in terms of sustainability performance and financial performance.

S&P Global has developed a proprietary system and a unique methodology to assess the sustainability performance of companies using primary information: the Corporate Sustainability Assessment.

This sustainability analysis is based on a consistent rule-based methodology. The methodology used is mainly primary research (direct contact to companies), but also continuous monitoring of companies regarding critical or controversial issues.

This information provides the sustainability selection universe for the Dow Jones Sustainability Indices and the data for other S&P ESG Indices.

For more details go to S&P Global site.

S&P Global and SAM have had a long-standing successful partnership of over 20 years. In 1999, SAM and S&P Dow Jones Indices collaborated to launch the Dow Jones Sustainability Index.

In January 2020, S&P Global acquired the ESG Ratings and Benchmarking business from SAM, which includes the Corporate Sustainability Assessment (CSA) which forms the basis of company ESG disclosure to S&P Global.

The DJSI allow the creation of portfolios of companies that fulfill certain sustainability criteria better than most of their peers within a given industry.

The DJSI benchmarks are comprised of three geographical breakdowns: DJSI World, DJSI Regions, and DJSI Countries. Indices within these geographical divisions use different starting universes and different percentiles to mark the cutoff point in selecting the most sustainable companies.

Data providers/ Index providers

The Data Providers/Index Providers are one of the main providers of non-financial information. The ESG rating market is very dynamic and these providers of non-financial information increasingly offer a diverse set of products and services to investors (e.g. ESG ratings, sustainability indices, controversy alerts, etc.). 
  
Please, check below the ESG and/or low carbon indices listed in the financial market (1) (or supporting financial indices).

ESG Rating Agencies

Data ProvidersReference stock indexIndicesEDP is memberInteraction with assessed companies/ 
Information collection
S&P Global Corporate Sustainability AssessmentS&P Global BMIDow Jones Sustainability IndicesDJSI World and DJSI EuropeQuestionnaire filled by the assessed companies
S&P Global (2)S&P Global BMIS&P Clean Energy IndexYesTrucost's annual research process
ISS ESG Ratings   Information collected from public sources through an ongoing process
ECPIECPI Global Ethical Equity and/or Initial Eligible UniverseECPI IndicesECPI IndicesPublic information collected by data providers, such as Bloomberg, Datastream and Reuters
MSCI (MSCI ESG)MSCI World Index. MSCI Global Investable Market Indexes (GIMI)MSCI ESG Leaders IndexMSCI ACWI ESG Leaders IndexMSCI World ESG Leaders Index
Sustainalytics STOXX ESG Leaders IndicesSTOXX Global ESG Leaders IndexSTOXX Social Leaders Index
CDP Climate Change n.a.EDP in not an "A Listers" member in terms of performanceQuestionnaire filled by the assessed companies
CDP Water Security n.a.EDP is not an "A Listers" member in terms of performanceQuestionnaire filled by the assessed companies

(1) EDP may be present in others indices built by the different financial market actors (e.g. ESG indices built by Euronext). The knowledge of these indices does not depend of any initiative from the company.

(2) To find out more, please click here.

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