EDP is the world’s number 1 among electric utilities in the Dow Jones global sustainability indices

Monday 11, December 2023
  • With a final score of 88 points, above average in the utilities sector, EDP stands out as one of the world's sustainability champions.
  • EDP is the only Portuguese company to have been included in this world benchmark index for 16 consecutive years.

EDP has once again been recognized as the world's most sustainable electric utility company by ranking first in the S&P Dow Jones Sustainability Indices (DJSI) World. With a score of 88 out of 100, EDP has outperformed all other electric utility companies and has achieved a rating higher than the industry average. Among a total of 3,500 eligible companies, EDP has been evaluated alongside eight other electric companies and has emerged as the best. EDP has been included in the Dow Jones Sustainability World Index, which features 321 companies from various industries, including 15 utilities, eight of which are electric.

Recognition in this global index reinforces the results of the S&P Global ESG Score evaluation that was released in November. This was expected due to EDP's global leadership in good ESG practices. Besides, EDP's performance has also earned it a place in the DJSI Europe. In this index, the company is the most sustainable among six electricity companies in a group of nine utilities. Additionally, EDP is among 150 companies selected to be part of the European index.

According to the evaluation of 26 criteria that earned EDP leadership in the DJSI world index, the company obtained the maximum score ('Best in Class') in four of them: climate strategy, innovation management, market opportunities and business ethics.

In the climate strategy indicator, EDP was distinguished for its net zero plan supported by consistent reporting in alignment with the core elements of the recommended climate-related financial disclosures (TCFD). In addition, at the beginning of 2023, EDP increased its decarbonization ambition and announced its commitment to be net zero by 2040. An ambitious strategy that was included in the company's Climate Transition Plan presented at the last annual shareholders' meeting and which received 99% approval.

In addition, the EDP group has shown good results in the field of business ethics due to the strategy initiated by joining the United Nations Global Compact, the publication of the Code of Ethics, the existence of an ethics process management system and the transparent reporting of infractions.

In innovation management, EDP connected its first hybrid (wind and solar) project in the Iberian Peninsula to the grid in 2023 (an innovative model of hybridization that it had already implemented in Alqueva in 2022, combining a floating solar park, hydroelectric power and storage), which implies an additional contribution to decarbonization and the increase of renewable energies in the electricity grid.

EDP has also consistently demonstrated its search for new business opportunities in the market. Anticipating the new energy paradigm, in which generation, distribution and consumption will be increasingly decentralized, EDP offers a range of energy solutions tailored to the specific needs of different customer segments. Its products and services are competitively priced and contribute to electrification and improving the efficiency of energy consumption. In solar DG, EDP is a leader in Europe, helping customers to decarbonize - since 2019 it has increased its capacity 25x. Sustainable mobility is also of particular importance to society and one of EDP's top priorities.

Performance excellence for 16 consecutive years

EDP has been a consistent member of the Dow Jones Sustainability World Index since 2008, making it the Portuguese company with the longest streak of appearances on this prestigious list. For 14 years, the company has also been a member of the Dow Jones European Index. Over the last 16 years, EDP has consistently ranked among the top two companies in its segment, moved significantly away from the first rating of 75 points.

An evolution that reflects its strong commitment to decarbonization, the development of renewable energies, and the promotion of a culture of sustainability. As a leader in the energy transition, EDP remains aligned with sustainable development and the fight against climate change, which are fundamental practices for ensuring environmental protection and value creation.

The DJSI is a world reference in sustainability and was created in 1999 as the first non-financial performance benchmark for listed companies worldwide. Every year, more than 13,000 companies from 62 sectors are invited to take part in the assessment, but only around 3,500 of the world's largest companies are eligible for inclusion in the DJSI.

In addition to economic and financial indicators, this index assesses criteria such as transparency, corporate governance, risk management, relations with various stakeholders, social and environmental responsibility, among other ESG aspects. Sustainability practices are measured using the Corporate Sustainability Assessment (CSA) approach based on a questionnaire with over 140 questions.

Check here for more information about S&P Global ESG Scores and here for details about DJSI Annual Review 2023.