Adaptation is one of the five main priorities of EDP’s climate action. It aims to improve the resilience of EDP’s infrastructures to climate change. Climate change became a reality and its effects are already being felt across the globe. Under the adaptation priority, EDP is assessing the level of exposure of EDP’s infra-structures to climate physical risks, considering the short, mid and long-term IPCC scenarios downscaled when possible to regionalized scenarios. The Commitment:
To have adaptation plans in place in its business units by 2022
For this purpose, a common corporate methodology supports Business Unit Plans already on- going. Risk information is consolidated at corporate level according the EDP’s risk taxonomy, aligned with TCFD Recommendations.
EDP’s Adaptation Plans consider the following international references:
- EU Taxonomy, with most of EDP’s assets eligible, EU taxonomy principles set under the “do no Significant Harm” criteria for Adaptation are followed
- Taskforce on Climate-related Financial Disclosures (TCFD), is used to set the physical risks taxonomy, integrated in the overall EDP’s risk taxonomy
- EU Strategy on Adaptation to Climate, for better alignment with public priorities
- Brazilian National Plan for Adaptation to Climate Change (PNA)
- ISO 14090:2019 and ISO 14091, to work under a recognized international global standard and better align this process with another ISO standards in place.
Additionally, each geography adds local instruments when available and applicable.
Main physical Risks assessed
Risks assessment occurs at business unit level and is periodically reviewed, as more information is collected and analysed.
Aggregated potential business impacts from physical risks, aligned with TCFD taxonomy:
- Increase in refrigeration and maintenance costs
- Rise of energy peaks/ losses
- Decrease in quality of service
- Damage to physical assets
- Operations interruption
- Operations interruption
- Loss of efficiency
- Reduction of river basins
- Share of water competitive use
- Operations interruption
- Loss of efficiency
- Increase in refrigeration and maintenance costs
- Decrease in quality of service
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
- Increase in refrigeration and maintenance costs
- Rise of energy peaks/ losses
- Decrease in quality of service
- Damage to physical assets
- Operations interruption
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Loss of efficiency
- Resources variability
- Rise in accidents
- Operations interruption
- Loss of efficiency
- Reduction of river basins
- Share of water competitive use
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
- Operations interruption
- Loss of efficiency
- Increase in refrigeration and maintenance costs
- Decrease in quality of service
EDP’s Group climate physical risks desegregated at technology/activity level:
High level risk, followed at corporate level and with need of mitigation measures being planned and implemented at business unit level
Low level risk, being followed and revised periodically at business unit level
Not applicable or negligible to the business workstream
Examples of initiatives in place
Distribution networks:
- Engage with local authorities to foster local climate adaptation aligned with local priorities, including the electricity grid infrastructures
- Increase the investment on vegetation management lanes for infrastructure protection, compatible with forest management to reduce wildfire risk, in Iberia
- Increase network protection devices; replace of conventional networks with compact networks and replace wooden power poles with conventional power poles are initiatives being implemented in Brazil to reduce extreme event risks and increase the resilience of network infrastructures
Generation Assets:
- Reinforce emergency response including a stronger engagement with safety authorities, to better address extreme events
- Investment on climate data downscaling mainly to better increase the knowledge and better assess Hydropower impacts from climate change
- Invest in water efficiency programs in assets located in water stress regions
- Promote nature-based solutions, through forest plantation to fix slopes and regulate the hydrological cycle
- Develop landslide risk maps to better set priority interventions
New Assets:
- Assess the potential changes in the generation forecasted, even knowing the size of the potential deviation in the case of relevant meteorological changes is still very uncertain.
Sustainability commitments
We value international agreements and initiatives
EDP's commitment to the world is to achieve cleaner and greener energy. In addition to decarbonization, we are implementing measures to fight climate change, following the recommendations of the report by the Task Force on Climate-related Financial Disclosures (TCFD) and adhering to numerous international initiatives that promote sustainability.
