OBJECTIVE

Formalize the commitments of EDP Brazil and establish policies and guidelines with respect to:

• Integration of the principles of sustainability and innovation in the processes of all areas within the organization, optimizing performance and creating shared value;

• Environmental management of the company ensuring environmentally responsible operations, considering the impacts of our activities along the value chain on biodiversity and ecosystem services, the sustainable use of natural resources and climate change;

• Establish principles inherent to the management of risks to health and safety at work;

• Management of intangible assets, aiming to generate shared and differential value to the organization's core business, considering human, social, environmental and intellectual capital.

PRINCIPLES OF ACTING

1.    Principles of sustainable development

Based on the vision of being "A global energy company, leader in value creation, innovation and sustainability", and in line with the Organization's Principles of Sustainable Development, EDP Brasil is committed to:

A.     Economic and social value

• Create, on an ongoing basis, value for shareholders.

• Increase efficiency in the use of resources and reduce exposure to risk.

• Contribute to improving competitiveness, namely through the provision of excellent services and anticipating customers' expectations and needs.

• Integrate environmental and social aspects into the planning and decision-making processes, including investments and activities of the company and its value chain, especially in the design and development phase of projects, changes in existing working conditions, at suppliers’ critics and customers.

• Contribute to the improvement of the population's quality of life.

B.     Eco-efficiency and environmental protection

• Promote the use of renewable energy sources and cleaner and more efficient energy technologies.

• Promote the improvement of energy efficiency in consumption.

• Manage the impacts of activities, in search of a positive environmental balance and thus assess, control, mitigate and compensate for the socio-economic and environmental impacts of the organization's projects and activities, with emphasis on the issues of waste and climate change, adapting to international standards corporate social responsibility.

• Increase operational efficiency and establish, whenever applicable, targets for reducing or improving efficiency related to the preservation of biodiversity and ecosystem services, efficient use of natural resources and energy, emissions of Greenhouse Gases (GHG), waste and effluents.

• Contribute actively to the preservation of the biodiversity environment.

• Promote the improvement of environmental management practices in the value chain.

C.      Innovation

• Support research, development and innovation (RDI) projects that contribute to the generation of value and reduce the negative impacts caused by the company's operations, based on the concepts of smart grids, clean energy, customer-focused solutions, energy storage, data processing technologies and operational efficiency;

• Foster entrepreneurship through initiatives aimed at the entrepreneurial ecosystem;

• Promote intrapreneurship at EDP Brasil through programs focused on the dissemination of innovation culture and new forms of work.

• Promote innovation and creativity, looking for new market opportunities and improving processes.

• Promote collaborative practices in all phases of design, production and service delivery.

• Promote research and technological development and knowledge management in the field of energy.

D.     Integrity and good governance

• Comply with legislation and established ethical and deontological standards.

• Respect and promote respect for human rights, within our sphere of influence.

• Ensure business governance that is participatory, competent and integral.

• Adopt best market practices in relation to ethics, human rights, corporate governance, anti-corruption and other illicit acts, maintaining diversified and integrated reporting and accountability for shareholders, customers and other members of the value chain.

E.      Transparency and dialogue

• Ensuring an open and trusting relationship with stakeholders.

• Promote consultation and communication channels with stakeholders, considering their contributions and expectations.

• Report in a transparent and objective way on economic, environmental and social performance.

F.      Human capital and diversity

• Promote integrity, rigor, individual responsibility and teamwork, favoring diversity.

• Promote the development of employee skills and recognize excellence and merit.

• Improve the health, safety and well-being of employees.

• Disapprove of abusive and discriminatory practices, guaranteeing equal opportunities.

• Promote employee satisfaction and motivation.

G.     Access to energy

• Promote access to energy, in a reliable, safe and quality manner.

• Adapt commercial policies to the specific social characteristics of the market.

• Ensure equity in access to energy and energy systems.

H.     Social development and citizenship

• Promote social innovation, maximizing the positive social impact of the activity

• Support social responsibility initiatives based on transparent criteria for evaluating the social return of invested resources.

• Cooperate in the sustainable development of societies.

2.      Occupational environment

EDP Brasil, a company that operates in all segments of the electricity sector, recognizes that the environmentand sustainable use of natural resources are essential for the sustainability of the Group's operations.Therefore, it works promoting respect for the environment, in search of sustainable development, and establishes the following commitments regarding the continuous improvement of environmental management and the reduction of the impacts of its activities:

• Ensure compliance with legal requirements regarding current environmental legislation and the non-authorization to carry out any potentially polluting activities without the necessary authorizations and necessary controls;

• Identify and monitor occupational environmental and impacts and establish controls for significant aspects and risks;

• Manage risks to eliminate them, reduce them and anticipate control, preventing incidents, accidents and environmental, material or personal liabilities and ensuring the communication of risks and respective mitigation measures

• Promote the use of technologies and process that contribute to the protection of the environment and environmental pollution risks, contributing to the rational use of natural resources and the reduction of emissions, waste and effluents;

• Demonstrate commitment to continuous improvement environment processes, based on the establishment and review of periodic objectives, goals and action plans;

• Promote initiatives aimed at disseminating knowledge about the efficient use of environmental resources and ecosystems, GHG emissions and the consequences of climate change, in addition to their implications for the company's business;

• Identify risks and opportunities and implement measures to improve the environmental quality of the places where it is located , minimize and mitigate impacts on the environment and climate change and adapt to their effects;

• Ensure the investigation of environmental incidents, identifying their cause and determining actions to prevent their repetition;

• Promote formal communication, consultation and stakeholder engagement processes related to the impacts on the environment;

• Contribute to the adoption of best practices in the value chain, through the establishment of specific procedures, especially for critical stages of the chain;

• Maintain a perceived leadership in environment so that all employees are encouraged to behave sustainable.

A.     Efficient use of resources

EDP ​​Brasil understands that the sustainable use of available natural resources is extremely important for the company and for society and is committed to:

• Promote the efficient use of natural resources in its activities and within the framework of a circular economy, in particular:

• o In the use and sustainable management of water in all the company's processes, operations and facilities.

B.     Climate changes

EDP ​​Brasil closely monitors international and national regulations on climate change and its impacts on its operations and commits to:

• Support and encourage projects, products and services that make it possible to reduce greenhouse gas (GHG) emissions and promote social and environmental benefits in the value chain, covering education and investment measures in equipment and new technologies;

• Promotion of internal energy efficiency and with partner suppliers in final consumption.

• Availability of low carbon products and services to its customers.

3.      Biodiversity and ecosystem services

EDP is aware of the sensitivity of natural ecosystems and the pressures to which they are exposed, as well as the intrinsic value of initiatives aimed at protecting biodiversity. In this way, it establishes the commitments related to biodiversity and ecosystem services and to the management of the impacts of its activities and along its value chain.

EDP ​​Brasil, aiming to play an active role in the conservation and preservation of biodiversity and minimizing its impacts, commits itself to:

• Integrate the evaluation of the impacts on biodiversity in the Distribution, Transmission, Commercialization and Generation units in planning, construction and operation activities;

• Contribute to avoid or reduce the loss of biodiversity, minimizing the negative impacts resulting from its activity, privileging a dynamic, comprehensive management, locally participated and with a long-term vision, aiming at a globally positive balance;

• Promote appropriate use of ecosystem services and natural resources and support initiatives for the conservation of nature and the enhancement of biodiversity, considering cultural and regional characteristics;

• Contribute to deepen scientific knowledge about the different aspects of biodiversity, namely through the establishment of partnerships;

• Regularly and transparently disseminate their biodiversity performance.

4.      Occupational safety and health

In EDP Brasil's undertakings, no task is so important or urgent that it should be performed without security. We believe that any accident or occupational disease is preventable and encourage the commitment of all employees in this principle, considering:

• Leadership as a promoter of Security management;

• No situation or urgency of service can justify endangering someone's life;

• Ensuring a safe and healthy work environment, ensuring compliance with legislation as a minimum level of adequacy;

• Promote the knowledge and information of employees about the risks inherent in the activities, making them aware of compliance with safety standards;

• Provide consultation and participation of workers in prior recognition, control and reduction of all risks associated with processes, as well as the elimination of hazards;

• Seek continuous improvement in the Security area with the involvement of all levels of management and the support of all employees, business partners, suppliers and stakeholders.

5.      Quality

EDP ​​Brasil, a company that operates throughout the Electricity Value Chain, recognizes that the quality of the service provided is essential for the sustainability of the Group's operations. Therefore, it establishes as its commitments:

• Comply with the requirements of our customers and partners in order to satisfy their needs and expectations with the offer of services and products of recognized quality, continuously improved and at a competitive cost within the standards of the market where it operates;

• To seek customer satisfaction through the appropriate treatment of their complaints, establishing processes that comply with customer and regulatory requirements, having as a basic guideline the systematic evaluation of complaints, to identify fundamental causes and constantly seek to improve processes;

• Create long-term partnership relationships with suppliers, which favor the development of future business opportunities for both parties;

• Ensuring a good working environment in order to provide our employees with the opportunity for professional and personal development, in a work environment compatible with the requirements of people's performance and fostering innovation;

• Continuously evolve the company's processes and organizational structure through the definition of objectives, measurement and temporal, quantitative and qualitative monitoring, respecting legal and regulatory requirements;

• Ensure the commitment of the leadership in the development of the quality process, obtaining positive results that correspond to the return on investments and sustainability in order to ensure the continuity of the company in the market where it operates.

6.      Intangible Assets

EDP ​​Brazil, in alignment with their business strategies, considers that it should prioritize intangible assets that generate and share differential value to the business core of the organization, which are:

• Human Capital: results from the EDP Culture, the skills and technical knowledge of the staff and the satisfaction of the employees in the Company.

• Intellectual Capital: set of intangible assets that differentiate the Company in the market and support the business strategy, such as innovation and research & development.

• Social Capital: results from the brand's reputation, resulting from the relationships established with customers, suppliers and communities.

• Natural Capital: through the management of natural resources and ecosystem services which the company maintains impact or dependence relationship.

The company establishes guidelines and methods to identify, evaluate, protect, develop, manage and measure these assets to maintain organizational knowledge to achieve its strategic vision.