EDP recognized as the most sustainable electric utility in the world by S&P Global CSA

Monday 27, November 2023
  • EDP scored as “best in class” among 256 companies worldwide in the categories of climate strategy, ethics, innovation, and market opportunities
  • This is EDP's third recognition as the world's most sustainable electric utility in ten years.

EDP has strengthened its leadership position by achieving the highest performance in the S&P CSA Scores 2023 in a list of 256 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 into Dow Jones Sustainability Indices (DJSI).

EDP has once again been recognized globally for its outstanding sustainability practices, receiving a score well above the energy 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.

"EDP is proud to be recognized as a leader at the forefront of global climate action and given our continued commitment to promoting ESG excellence," emphasizes Rui Teixeira, CFO of EDP. “This recognition acknowledges the credibility of EDP's decarbonization strategy, which in 2023 has made great progress towards net zero commitment, as well as the robustness of key values such as innovation and ethics. Italso reaffirms our conviction that good sustainability practices can be a transformative force and should therefore be a pillar in any company's strategy."

On climate strategy, EDP was distinguished for its road map to net zero supported in the consistent reporting in alignment with the core elements of recommended climate-related financial disclosures TCFD. Moreover, in early 2023, EDP raised its ambition towards decarbonization by revising its targets under the new SBTi Net-Zero Standard and announced its commitment to be Net-Zero by 2040. This ambitious climate strategy is included in the company’s Climate Transition Plan, showing high-quality disclose, that was submitted at the last Annual Shareholder meeting with 99% of approval.

Additionally, the EDP group demonstrated better results in the field of business ethics due to the strategy which started with a subscription to the United Nations Global Compact, the publication of a Code of Ethics, the existence of an ethical process management system and the transparent reporting on breaches.

In innovation management, EDP connected in 2023 to the network its first hybrid project in Iberia, which entails an additional contribution to decarbonization and the rise of renewable energies in the electricity network.

EDP has consistently demonstrated its pursuit of new business opportunities in the market. In anticipation of the new energy paradigm, where production, distribution and consumption will be increasingly decentralized, EDP offers a range of energy solutions tailored to the specific needs of different customer segments. Their products and services are competitively priced and contribute to energy consumption's electrification and efficiency improvement. In solar DG, EDP is a leader in Europe, helping clients decarbonize – since 2019 it has increased 25x its capacity. Also, sustainable mobility is of particular importance for society and one of EDP's top priorities.

CSA was established in 1999 as SAM and acquired by S&P Global in 2019. The S&P Corporate Sustainability Assessment (CSA) scores are used for the Dow Jones Sustainability Index (DJSI), S&P 500 ESG Index and several other S&P Dow Jones sustainability indices and involve the participation of a growing number of companies. The CSA forms the basis of companies' ESG disclosures to S&P Global regarding financially relevant ESG factors and underpins the ESG research carried out by S&P's different divisions.

The CSA’s best class approach is based on information provided by the companies through the online questionnaire, scored and ranked against other companies in their industry.