Transparency and Reporting

Integrated Annual Report 2022

Read the complete report

Part I
Management Report

Energy transition

Part II
Financial Statements

renewables

Part III
Corporate Governance Report

innovation

Part IV
Remunerations Report

Clima

Part V
Annexes

Clima
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ESG Incidents

With the aim of ensuring greater transparency and granting additional context, EDP has set this section regarding specific ESG incidents.

ESG principles, policies, and practices play an essential role and increase their importance in the company strategies to address the needs and interests of their stakeholders.

However, these initiatives may not always avoid an ESG incident.The ESG incidents relate to one or more ESG indicators and are considered as controversies. Sometimes, these controversies could result in the payment of fines.

ESG
Active controversies
Tax controversy regarding sale of hydro portfolio
Investigation process about CMEC and DPH
São Manoel dam in Brazil
Abuse of market position
Vegetation management
Commercial Campaign EDP/Continente Plan
Tax controversy regarding sale of hydro portfolio
In December 2020, EDP sold a portfolio of Hydro Power Plants in Portugal to a French consortium led by ENGIE. There is an ongoing investigation process about the tax implications of the transaction.
As always, EDP is collaborating with the authorities. EDP understands, considering reputable experts’ opinion, that the operation met all legal and tax requirements.
You may find the most recent details in here (page 260)
Investigation process about CMEC and DPH
On 2 June 2017, EDP was made aware of the investigation being carried out by the DCIAP since 2012 regarding the amounts due to EDP for the early termination of the CAEs and the right of use over the DPH.
For further information, please see the latest update regarding this matter as well as EDP’s market notifications and public positionings.
You may find the most recent details in here (page 358)
São Manoel dam in Brazil
The São Manoel Hydroelectric Power Plant was built a few kilometers from the border of the Kayabi Indigenous Territory, inhabited by three ethnic groups (Kayabi, Apiaká and Munduruku).
The only indigenous manifestation involving the São Manoel Hydroelectric Plant took place at the end of 2017 and the claims were not related to environmental actions implemented by the Company. The controversial fact corresponds to an
isolated event and currently there is no other manifestation, and all actions foreseen in its Environmental Licensing Process are being implemented.
You may find the most recent details in here (pages 155 and 157) and in here
Abuse of market position
This case is related to the bidding strategy in the ancillary services market of EDP Produção's power plants.
According to the AdC - Competition Authority, between 2009 and 2013, EDP Produção would have limited the supply of secondary reserves by the power plants under the CMEC - Contractual Balance Maintenance Costs regime.
In this context, the AdC imposed a fine of €48 million on EDP Produção, which was confirmed by the Competition Regulatory and Supervisory Court (TCRS), following the appeal filed by EDP Produção.
EDP Produção had already paid the fine before the final decision of the TCRS. EDP Produção has appealed the TCRS decision to the Lisbon Court of Appeal.
Following this process, the Association Ius Omnibus, filed a popular action, anchored in the decision of AdC, claiming the payment of compensation to all consumers in Portugal allegedly injured. This process is suspended until a final decision
is taken on EDP Produção's appeal.
You may find the most recent details in here (page 257)
Vegetation management
E-REDES and some of its employees were accused in 2 legal cases, regarding to 2 wildfires that occurred in 2017 (Pedrogão) and in 2018 (Monchique).
Regarding Monchique, the fact-finding debate took place in 2022, where E-REDES and an employee presented their witnesses and discussed other proofs already offered in the written defence, based on which the judge decided not to
indict both, based on the facts in the charge made by the Public Prosecutor. This decision has become final, as no appeal has been filed.
Regarding Pedrógão Grande, the criminal proceedings were against several defendants, including two E-REDES employees, but the collective court decided that there were no culprits. Although appeals have been filed,
none of them was against the decision that acquitted the E-REDES employees. The appeal period ended, and the decision that acquitted the collaborators became final.
You may find the most recent details in here (page 14)
Commercial Campaign EDP/Continente Plan
EDP, S.A. and EDP Comercial were charged by the Portuguese Competition Authority (AdC) with entering into an alleged non-compete agreement with Sonae MC - Modelo Continente. This decision was appealed before the Portuguese
Competition, Regulation and Supervision Court (TCRS), which reduced the fines by 10%, to EUR 2.6 million and EUR 23.2 million, respectively. This TRCS decision was appealed before the Lisbon Court of Appeal. In April 2021,
this court referred the case back to the Court of Justice of the European Union, which scheduled the trial hearing for November 2022. The decision is pending.

Communications

For further information regarding this investigation, please see public information namely EDP's statements at CMVM (Portuguese Securities Market Commission), media, European Commission decisions.

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