EDP strengthens position in the FTSE Russell Index

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EDP strengthens position in the FTSE Russell Index

Friday 02, August 2019

Good practices in the areas of environmental and corporate governance value EDP's performance which increased its FTSE4Good annual index score and now stands out in the global 'top 5' of the utilities sector.

EDP strengthens its position in the last FTSE4Good global ranking, an index that evaluates the performance of companies with outstanding environmental, social and governance practices. In the annual edition, released in late July, EDP saw its score increase from 4.6 to 4.7 (on a 5-point scale), thus marking a strong presence for the 10th consecutive year.

In the ESG (Environmental, Social and Governance) assessment, the company improved its performance in 2019 on two components. One was the environmental aspect, where the score rose from 4.5 (in 2018) to 4.7 - a valuation increase very much supported by the good performance in biodiversity, an area in which the company achieved a maximum grade of 5 points. The other component is that of corporate governance, where EDP went from a rating of 4.7 last year to 5 points, partly influenced by the good rating obtained by anti-corruption practices that also deserved top marks.

Globally, the FTSE4Good Index score has placed EDP in the top 5 of the utilities sector and in the first place among companies from the same subsector (alternative electricity). This sustainability assessment resulted from the analysis of 172 indicators over the past year, spread across three pillars and 11 subjects: environmental (biodiversity, climate change, pollution and water resources and uses); social (human rights and community, labor standards, prevention and safety) and corporate Governance (anti-corruption, risk management and corporate governance).

EDP has been part of the FTSE4Good Global Index since 2010. To make this assessment, FTSE / Russell sent an exhaustive questionnaire to the companies on the list to measure their ESG performance, also regarding the sector-related risk exposure to each component.