Investment Lines

edp institute

Investment Lines

Commitment to Human and Social Development

Commitment to Human and Social Development 

The EDP Group supports initiatives guided by the External Social Investment Policy and Sponsorship Policy that cover investment decisions related to direct and incentive funds in Brazil.

The elements intrinsic to the concept of Private Social Investment (PSI) are: a concern with planning, business alignment, monitoring and evaluation of projects, a strategy focused on impact and social transformation results, in addition to community involvement in action development.

Direct Social Investment 

Voluntary, planned and monitored investment of private resources for the achievement of socio-environmental projects of public interest.

Incentivized Social Investment 

Transfer of financial resources to institutions and legal entities arising from waiver and fiscal incentives, whether federal, state or municipal, based on taxes such as: Income Tax (IR); Tax on the Circulation of Goods and Provision of Services (ICMS); for the realization of cultural, sporting or social projects, etc.

EDP Group companies in Brazil use the tax benefits derived from the tax incentive laws to contribute to the Human and Social Development of the communities where they are present:

  • Rouanet Law to Encourage Culture
  • Sports Incentive Law
  • Childhood and Adolescence Fund
  • PROAC-Cultural Action Program / SP
  • PIE-Sports Investment Program / SP

Direct and incentive investments in social, cultural and sports projects take place through a public selection notice. This process happens annually. The selected projects can be renewed for a further year, in accordance with quality and the results achieved for the beneficiaries.

Tax incentive resources and most of the direct resources are allocated directly by each company to selected projects throughout the year.

Each company´s contribution varies according to the availability of its own resources, tax waiver resources and the availability of projects in its areas of interest. Not every company has the available resources for social investments. But all companies that have the resources to invest do so with the support of the EDP Institute. It is worth highlighting the fact that these resources are not included in these amounts allocated to mandatory investments defined by the sector´s regulatory agency.