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.
The financial services market of sustainability (e.g. sustainability indices) has been developed as a requirement to support asset managers in the investment decision making process.
The majority of sustainability indices is established by ESG Rating Agencies that define an ESG methodology to select the companies to be included in those indices.
Sustainability indexes are an important tool for EDP to the extent that they allow the company’s sustainability performance to be measured and make a contribution to the continuous improvement of its operations, particularly in terms of its market orientation.
EDP obtained the following scores:
* Ratings are independent and, therefore, should not be compared. The above rankings were assessed in 2017. The exception are the scores for Sustainalytics.
EDP is present in the following indexes:
EDP is included in the Ethibel EXCELLENCE Investment Register of a group of companies that outperform the norm in their operational sector. The assessment is carried out based on CSR (Corporate Social Responsibility) criteria using information gathered by Vigeo and surveying of relevant stakeholders of the businesses. EDP remains part of Ethibel Sustainability Index (ESI) Excellence Europe, which contains only companies included in the Investment Registers. The indexes are owned by Vigeo, but its constitution is the responsibility of ETHIBEL Forum, a Belgian non-profit organization that aims to promote Socially Responsible Investment (SRI).
EDP is included in the Sustainability Euronext Vigeo - World 120, Europe 120, and Eurozone 120 Indexes. Each of these indexes distinguishes 120 listed companies for their ESG (Environmental, Social and Governance) performance, assessed based on publicly collected information which is compiled in a report sent to the companies for validation and commentary. This index family was launched jointly by Vigeo and NYSE Euronext. The first entity, together with EIRIS, is responsible for gathering information and the periodic selection of member companies of the indexes. NYSE Euronext acts as supervisor of the indexes, monitoring the selection of the members and ensuring that indexing reflects a reliable view of the market.
EDP belongs to the FTSE4Good Global Index. The evaluation made was based on completion of a questionnaire sent to companies by FTSE/Russell. ESG (Environmental, Social and Governance) aspects were considered along with the exposure to risk associated with the sector and the geographic location of business operation - FTSE ESG Ratings. The series of FTSE4Good indexes are constructed by FTSE, a company member of the London Stock Exchange Group.
EDP is included in a set of Morgan Stanley Capital International indexes, standing out in World ESG, ESG Europe, Low Carbon World Leaders and ACWI Low Carbon Leaders Indexes, it was confirmed at the beginning of 2016. One of the evaluation criterion was based on ESG (Environmental, Social and Governance) quantitative information requested from the companies. MSCI is an entity with more than 40 years of experience in the construction and maintenance of indexes.