EDP is included for the 10th consecutive year in the Dow Jones World Sustainability Index, which reflects the company’s efforts in integrating sustainability in all priority areas of its value chain.
Sustainability Indexes are an important tool for EDP because they allow the quantification of the company’s sustainability performance, they contribute to the continuous improvement of operations and they orient the business in terms of market trends and challenges.
This index evaluates, in a very selective and demanding way, the sustainability performance of companies and their adaptation to market trends.
In 2017, EDP achieved a score of 91 (more 2 points than in 2016), 41 points above the average score of electric utilities. Thus, maintaining its position in the World Index for the 10th consecutive year and was selected by RobecoSAM to be part of DJSI Europe, where mark position for 8 years.
EDP, significantly improved the score in the environmental dimension by 9 points (in 2017 scores 91 points). The average score of electric utilities is 46 points. In the remaining dimensions the score was:
This year, 2,086 listed companies were analyzed. 320 were included in the global index and 149 in the Europe index.
The Dow Jones Sustainability Index emerged in 1999 as the first performance benchmark of leading companies in sustainability at a global level.
The companies recognized as part of the the Dow Jones Sustainability Index family are classified as those most able to create value for shareholders in the long term through the management of risks associated with economic, environmental, social and state governance factors.
The importance given by investors to this index reflects the growing concern of companies and other non-profit organizations for a sustainable world. Its financial performance is thus intrinsically associated with compliance with sustainability requirements which cut across all areas of business life and involve economic, social and environmental aspects.
The S&P Dow Jones Indexes and RobecoSAM developed the family of sustainability indexes which includes the global sustainability index (DJSI World), regional indexes (e.g. DJSI Europe) and country indexes (e.g. DJSI Chile):
The composition of the Sustainability Indexes stems from assessment made by RobecoSAM, a management entity for sustainable investment which evaluates and sorts the companies according to their degree of compliance in terms of the three dimensions of sustainability criteria: economic, social and environmental. The weight of each of these dimensions may vary annually according to best practices at each specific moment.
S&P Dow Jones the elaborates the indexes based on the classification made by RobecoSAM for sustainability by industry and industry group.
The sources of information used by RobecoSAM are:
The inclusion of a company in these indexes brings it many benefits, both of a tangible and intangible nature. In addition to a public recognition of leadership in strategic areas of economic, environmental and social dimensions, there is also the important recognition of investors, clients and even legislators. Inclusion in the index is also an acknowledgment of balanced risk management.
For EDP, the effort of entering into the Dow Jones Sustainability Indexes also allows the design of clear and precise objectives in terms of sustainable operations.
The constant evaluation of the company and the updating of the criteria creates undeniable rigor in all areas of operations for the Group.
The company’s practices, assessed for inclusion in indexes, include such areas as:
In 2016, EDP increased its score to 89 (against 83 in 2015), maintaining its position in the World Index for the 9th consecutive year. This year, 1,986 companies from the S & P Global BMI stock exchange were analyzed and less than 16% were included in the global index.
EDP was included for the 8th consecutive year in the Dow Jones World Sustainability Index.
In 2015, 3,375 companies from the S&P Global BMI stock exchange were invited for analysis and less than 10% were included in the final index.
In 2014, EDP was included for the 7th consecutive year in the Dow Jones Sustainability Index (DJSI) with 88 points, being considered the leading corporation in the Utilities Industry Group: Electricity, Water and Gas.
In the economic dimension with 89 points, EDP holds the top score (100 points) in the criteria Price Risk Management, Risk & Crisis Management and Scorecards / Measurement Systems.
In the environmental dimension, apart from Biodiversity, a criterion in which EDP attained the highest score, the Water Related Risks criterion achieved significant improvement, attaining 100 points.
The company maintained its score in the social dimension, as well as in leadership of the Human Capital Development criterion.
EDP is a Utilities world leader in the Dow Jones Sustainability indexes (DJSI). For the 6th consecutive year it is included in the DJSI World and Europe sustainability indexes.
In 2013, EDP is leader of Utilities: Electricity, Water and Gas, with the highest score for this index so far: 90 points.
In the Economic Dimension, EDP earned 91 points, one point below the leader. It obtained the best score (100) in the criteria for Price Risk Mangement, Risk & Crisis Management </i>and<i> Scorecards/Measurement Systems.
In the Environmental Dimension, it obtained the highest industry score (89 points) with the top score (100) for Biodiversity.
In the Social Dimension, with 90 points, it leads the industry with respect to Human Capital Development (100).
EDP at the top of global sustainability
For the 5th consecutive year, the Group ranks among the electricity companies with the best performance in the Dow Jones Sustainability Indexes.
In 2012, EDP holds a high-performing position in the Dow Jones Sustainability Index, at both world and European levels, so appearing among the most sustainable power companies. In a world in which the average evaluation in 2012 was 61 points, the company achieved the highest rating ever with 87 points, equaling the leader of the electrical sector and of the supersector of utilities.
In areas such as integrated risk management; management control systems; biodiversity; the development of human capital; engagement with stakeholders and involvement with society in terms of corporate citizenship, it obtained a score of 100.
For the second consecutive year, EDP is world leader in the Dow Jones Sustainability Index in the Electricity Companies Sector.
For the fourth year, EDP is present in the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Europe Index (DJSI Europe), maintaining its position for the second consecutive year as a global leader in the Electricity Sector.
This year, the company achieved a rating of 86 points, increasing its rating by 2 points with respect to 2010 and being a world leader in the Social Dimension.
In the Economic Dimension, EDP continues to be one of the best companies in the sector.
The maintenance of the maximum score in the Risk & Management criterion deserves emphasis.
The improvement of our position in the Environmental Dimension corresponds to the improved alignment with best practices and is the result of efforts that have been developed, both in the area of the biodiversity and environmental management, as well as in the strategy with regards to climate change. The maximum score on Biodiversity and Climate Change should be highlighted.
Of a set of 22 criteria, EDP obtained best practice for 10 of these and reached the maximum score of 6.
EDP is a world leader in the Dow Jones Indexes of Sustainability among companies in the Electricity Sector. For the third year in a row, EDP is included in the Dow Jones Sustainability World Index and the European Dow Jones Europe Index.
EDP is the first Portuguese company to be a world leader in the Dow Jones Sustainability Indexes. The company maintained a prominent position in the leadership of Sustainable Development practices and is, for the first time, Best in Class in the Social Dimension.
It retains its leading position in the Social Dimension, for the first time being considered as Best in Class, reaching 89 points (4 more points than in 2009). It stands out in maintaining the maximum score in the criteria of Human Capital Development, Stakeholder Engagement and Social Reporting, and, for the first time, Best in Classwithout the maximum score in the criterion of Labor Practice Indicator.
In the Economic Dimension, EDP continues to be one of the best companies in the sector, maintaining its 2009 score (88 points), and winning Best in Class with the highest score (100) in the Price Risk Management Scorecards and Measurement Systems and Risk & Crisis Management criteria.
In the Environmental Dimension, its score of 77 points (3 points more than the previous year), EDP shows improvement in alignment with Sector practices as a result of efforts in the areas of environmental management, mainly regarding biodiversity and climate change strategy. The maximum score in the Biodiversity and Climate Strategy criteria and the best score in the Electricity Generation criterion all stand out.
In short, of a set of 22 criteria, EDP is Best in Class in 10, also achieving the maximum score in 8 of these.
In 2009, EDP was selected for the second consecutive year for inclusion in the World and STOXX Dow Jones Sustainability Indexes and so became one of the top 13 companies in the electricity sector in the world and one of the 7 best companies at the European level.
EDP substantially improved its score, with an increase of about 9% compared to 2008 and reduced its distance from the new leader in the global sector, which leads it by only 2 points. EDP reached 100% in 6 of the 21 criteria evaluated: Risk Management, Price Risk Control, Score Card Systems, Stakeholder Engagement, Development of Human Capital and Environmental Reporting. EDP was still considered the best company in Biodiversity (98%) and Electricity Production (92%). The best practices are evaluated based on 21 criteria, divided into economic, environmental and social dimensions, and use either information provided by the applicant company or publicly available information.