EDP's 10-year leadership in global sustainability

edp news

139657_201307221345283998.jpg

EDP's 10-year leadership in global sustainability

Thursday 07, September 2017
EDP Group
Dow Jones

In 2017, EDP group has strengthened its position in the Dow Jones Sustainability Index by obtaining its best score ever.

Today, EDP reached a historic milestone by completing a decade of permanence in the Dow Jones Sustainability Index, which recognizes companies leading in sustainability worldwide. In 2017, the group obtained its best score ever since joining the Dow Jones Sustainability Index World and Europe indexes and achieved second place in the utilities sector ranking.

Since 2008, the year in which EDP first gained its place in the Dow Jones Sustainability Index, the group has displayed an increased devotion to the assessment of its environmental, economic and social performance. This commitment towards sustainability has now materialized in obtaining 92 points in the index.

In addition to being the best result ever, this score is 42 points higher than the industry average, leaving EDP only one point behind the leader in the utilities sector. The group received the highest grade in ten categories highlighting the social component (94 points).

In this component, the maximum score (100) was reached in the areas of Corporate Citizenship and Philanthropy, Social Reporting, Labor Practice Indicators and Stakeholder Engagement. Additionally, the best grade (98) was achieved in the field of Talent Attraction & Retention.

In the environmental component, EDP recorded a significant evolution, obtaining 91 points. This represents a growth of nine points compared the previous year. In this component, EDP also reached the maximum scores in the two categories Biodiversity and Water Related Risks and high scores (98) in the areas of Climate Strategy and Environmental Reporting.

In the economic component, in which the group also achieved 91 points, the maximum scores were reached in the areas of Customer Relationship Management, Materiality and Policy Influence.

The importance assigned to these indexes by investors reflects the growing interest of companies and other non-profit organizations in a sustainable world.

The Dow Jones Sustainability Index was created in 1999 as the first benchmark for non-financial performance of companies listed globally. Of the 2528 companies invited to the annual Dow Jones Sustainability Index World survey, only 320 were selected, 13 of which were utility companies. There are only two Portuguese companies in this group. At the European level, 609 were considered and only 149 were included in the Dow Jones Sustainability Index Europe. There are six utility companies in this selection.

These companies are rated as the most capable of creating shareholder value in the long term by managing the risks associated with economic, environmental, social, and corporate governance.

The importance assigned to these indexes by investors reflects the growing interest of companies and other non-profit organizations in a sustainable world. EDP's financial performance is thus intrinsically linked to the fulfillment of sustainability requirements that span across all areas of business life and economic, social, and environmental aspects.

This decade of permanence among leaders in sustainability reflects the stability of EDP's strategy and its commitment to finding the best solutions to Humanity's challenges. EDP has made several climate change commitments with the aim of contributing to limiting global warming to 2 °C (Science Based Target). More recently, EDP has become even more involved with the global agenda by committing to six more United Nations Sustainable Development Goals.