environmental dimension
Climate Change

For the first time, the Paris Agreement established ambitious and global climate goals: limiting global temperature rise to 2°C and ensuring a neutral balance between the emission and removal of greenhouse gases (GHG) in the 2050-2100 period.

To achieve these goals we need to increase the global economy’s current decarbonization rate by about 500%, and the electricity sector and the energy sector will play a crucial role in this transition.

EDP has a business strategy focused on growth from renewable sources, and it is already one of the largest windfarm operators in the world. Our climate strategy is inseparable from our business strategy: to decarbonise electricity generation and provide our customers with efficient solutions that enhance the efficient electrification and accelerate the decarbonization of the economy.

To implement this strategy, we assume 5 commitments :

To achieve this strategy we assumed 5 commitments:

International initiatives

 

EDP has joined all major international initiatives that aim to foster corporate leadership in the creation of a low carbon future. In this context, we commit to:

  • An emission reduction goal which is consistent with the decarbonization levels required to limit global temperature rise to 2°C (Science Based Target). The goal, approved by Science Based Target initiative in the beginning of 2017, was to reduce by 55% the scope 1 and 2 specific emissions ib 2030, compared with 2015 levels;
  • Achieve carbon neutrality in 2050 (EURELECTRIC Declaration);
  • Align our internal carbon prices with the Business Leadership Criteria on Carbon Pricing, as determined by the United Nations Global Compact;
  • Disseminate climate change information in our accounting documents, as per the requirements of the Climate Change Reporting Framework (prepared by the Climate Disclosure Standards Board).

We are one of the partners of the Low Carbon Technology Partnerships Initiative (LCTPi), which is headed by the World Business Council for Sustainable Development (WBCSD).

The LCTPi brings together some of the largest companies in the world, and it has shown that currently available business solutions have the potential to reach the 65% emissions reduction required to achieve the 2ºC goal. The purpose of the renewable energies action plan, in which EDP is directly involved, is to promote the installation of 1.5 TW of renewable energy worldwide, over the next 10 years.

Business decarbonization and 2018 performance

CO2 emissions from our thermoelectric power plants depend on a number of factors, notably the fossil fuels (coal and natural gas) mix, the market price of these fuels, which determines, together with the price of CO2 in the European emission trading scheme, the power plants order of merit,  and, lastly, the hydrological conditions, characterized by the hydraulic index (IPH), which determines the greater or lesser use of hydropower. In recent years, market factors have led to the preferential use of coal-fired power plants and the fluctuations observed in the annual CO2 emissions reflect the variation of the IPH.

 

The interannual variation of CO2 specific emissions is mainly influenced by the increasing penetration of renewables and the impact of hydroelectric production in Portugal, strongly dependent on the IPH.

 

EDP reports its direct (scope 1) and indirect emissions (Scope 2 and 3) according to the recommendations of the GHG Protocol - see chart by emission categories.

 

Related Content

CO₂ EQUIVALENT EMISSIONS (KT) ¹ 
UNITS 
2018 
2017 
2016 
2015 
SCOPE 1
kt
18,429
23,159
18,931
21,55
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Stationary combustion
UNITS kt
2018 18,404
2017 23,129
2016 18,9
2015 21,518
CO₂ EQUIVALENT EMISSIONS (KT) ¹ SF6 Emissions
UNITS kt
2018 10
2017 10
2016 8
2015 8
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Company fleet
UNITS kt
2018 15
2017 20
2016 18
2015 18
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Natural gas consumption
UNITS kt
2018 0.19
2017 0.22
2016 0.48
2015 0.46
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Natural gas losses
UNITS kt
2018 0
2017 0
2016 5
2015 6
SCOPE 2 (Location-based ²)
kt
602
818
547
982
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Electricity consumption in office buildings
UNITS kt
2018 2
2017 2
2016 0
2015 2
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Electricity losses
UNITS kt
2018 577
2017 795
2016 540
2015 957
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Renewable plants self-consumption
UNITS kt
2018 23
2017 21
2016 7
2015 23
SCOPE 2 (Market-based³)
kt
585
802
547
982
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Electricity consumption in office buildings
UNITS kt
2018 0
2017 0
2016 0
2015 2
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Electricity losses
UNITS kt
2018 577
2017 795
2016 540
2015 957
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Renewable plants self-consumption
UNITS kt
2018 8
2017 7
2016 7
2015 23
SCOPE 3
kt
11,334
13,039
12,469
14,623
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Purchased goods and services (C01)
UNITS kt
2018 49
2017 54
2016 55
2015 53
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Capital Goods (C02)
UNITS kt
2018 330
2017 324
2016 287
2015 251
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Fuel and energy related activities (C03)
UNITS kt
2018 6,399
2017 8,344
2016 7,091
2015 7,636
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Upstream transportation and distribution (C04)
UNITS kt
2018 675
2017 454
2016 304
2015 385
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Business Travels (C06)
UNITS kt
2018 10
2017 11
2016 11
2015 9
CO₂ EQUIVALENT EMISSIONS (KT) ¹ Use of sold products (C11)
UNITS kt
2018 3,871
2017 3,852
2016 4,722
2015 6,288
Notes:

¹ Detailed information about the climate strategy and performance may be consulted in the answer to CDP - Climate Change and in the Annual Reports.
² Based on global emissions factors of each geography. 
³ Based on suppliers emissions factors. 

In addition to the initiatives to reduce the carbon footprint in terms of energy distribution and generation, EDP plays a very active role with its customers and the community in general, promoting the improvement of energy efficiency in end use and the consequent reduction of emissions.

Addressed to the liberalized market, EDP provides a set of solutions to meet the specific requirements of the different customer segments, through a diversified offer of competitive and sustainable products and services, that avoid emissions in the end consumption of energy.

More detailed information on the products and services provided by the various EDP Group business units can be found in the Sustainability Report 2017, as well as in the documents "Normative Guide to Energy Services" and “DSM and Energy Efficiency Initiatives 2018”.