To formalize EDP Brasil’s commitments and establish guidelines and protocols pertaining to:



The integration of sustainability and innovation principles in all areas within the organization, optimizing the company’s performance and generating shared value;



Environmental and OHS management in order to ensure environmentally responsible operations and a safe working environment for employees;



Biodiversity and ecosystem service management, taking into account the impact of our activities along the value chain;



Intangible asset management with the goal of maintaining organizational knowledge so as to achieve the company’s strategic vision.


OPERATING PRINCIPLES
1. Innovability: innovation and sustainability for the generation of shared value
Based on the company’s vision of becoming “A global energy company, a leader in value creation, innovation and sustainability,” and in line with the organization’s Sustainable Development Principles, EDP Brasil has established the following commitments:
A. To create economic and social value



To integrate environmental and social aspects into all planning stages, decision-making processes, investments and activities, both within the company and along its value chain, especially with regard to the projects’ design and development stages, changes in existing working conditions, critical suppliers, and customers;



To support and encourage projects, products and services that enable the reduction of greenhouse gas emissions (GHG) or provide social and environmental benefits along the value chain, including educational measures and investments in new equipment and technologies;



To implement production processes based on renewable energies.


B. To promote eco-efficiency and environmental protection



To improve operational efficiency levels and establish, where applicable, reduction or efficiency improvement targets pertaining to biodiversity preservation, the efficient use of natural resources and energy, greenhouse gas emissions, waste and effluents;



To evaluate, mitigate and offset the socio-economic and environmental impacts of the organization’s projects and activities, especially with regard to waste and climate change, by complying with international standards of corporate social responsibility, environmental management, and health and operational safety.


C. To promote innovation



To support research and development (R&D) projects and new technologies that reduce the company’s operational impacts.



To promote and support energy generation, distribution, trading and transmission R&D projects focusing on the concepts of smart grids, clean energy, customer-focused solutions, energy storage, data processing technologies, and operational efficiency;



To promote intraentrepreneurship within EDP Brasil and support possible partnerships with the entrepreneurial ecosystem.


D. To ensure integrity and good governance


To adopt the best market practices with regard to ethics, human rights, corporate governance, measures to combat corruption and other illicit activities, while implementing integrated and diverse accounting/reporting practices for shareholders, customers, and other elements of the value chain.

E. To ensure transparency and dialogue


To ensure an open and trusting relationship with stakeholders by establishing communication and consultation channels, taking into account their contributions and expectations while providing transparent and objective reports on economic, environmental and social performance data.

F. To promote human capital and diversity


To invest in the company’s human capital by encouraging professional growth and leadership development while fostering diversity within business units through specific programs that allow for quantitative and qualitative reports on the company’s evolution, thus creating an atmosphere of respect and equity in all operations involving EDP Brasil.

G. To promote energy access


To invest in projects and programs related to energy access in underdeveloped regions, loss reduction, energy efficiency and smart grids, and to keep up with technological advances in the electricity sector in an anticipative and proactive way.

H. To support social development and citizenship


To promote social innovation while optimizing the activity’s impact on society, and to support social responsibility initiatives based on transparent criteria for the evaluation of the social return on invested resources.

2. Environment, occupational health, and safety at work
EDP recognizes that the environment and occupational health and safety are crucial for the sustainability of the Group’s operations. Therefore, EDP Brasil has established the following commitments with regard to the continuous improvement of environmental management, occupational health, and safety at work:



To ensure compliance with legal requirements and prohibit the performance of any tasks without controlling the corresponding OHS and environmental risks;



To manage risks in order to suppress, reduce and preempt them, preventing incidents, accidents and environmental, material or personal liabilities, while ensuring the reporting of risks and their respective mitigation measures;



To promote the use of technologies that contribute to protecting the environment; preventing occupational health and safety risks; boosting energy efficiency and the rational use of natural resources; and reducing emissions, waste and effluents;



To demonstrate commitment to the continuous improvement of OHS and environmental processes, based on the establishment and revision of periodic goals, targets and action plans;



To implement initiatives aimed at disseminating knowledge about safe working conditions, healthy work practices, the efficient use of environmental resources, GHG emissions and the consequences of climate change, in addition to their implications for the company’s business activities;



To identify risks and opportunities to improve occupational health and safety conditions, minimize and mitigate environmental and climate change impacts, and adapt to the latter’s effects;



To promote formal communication, consultation and stakeholder engagement processes with regard to environmental and OHS impacts.



To contribute to the adoption of the best practices in the value chain by establishing specific procedures, especially for critical stages along the chain;



To monitor environmental and OHS issues and impacts;


3. Biodiversity and ecosystem services
EDP is aware of the sensitivity of natural ecosystems and the pressures to which they are subject, as well as of the intrinsic value of biodiversity protection initiatives. Therefore, EDP has established several commitments pertaining to biodiversity, ecosystem services and the management of the impacts of its activities, both within the company and along its value chain.
Seeking to play an active role in preserving biodiversity and minimizing the impact of its activities, EDP Brasil has established the following commitments:



To integrate biodiversity impact assessments into the design, construction and operation of its Distribution and Generation units;



To minimize the negative impacts of its activities on biodiversity and leverage the positive ones. When negative impacts cannot be minimized, EDP undertakes to offset them in other domains;



To promote appropriate use of ecosystem services and natural resources and to support nature conservation and biodiversity enhancement initiatives while taking cultural and regional characteristics into account;



To improve scientific knowledge on the different aspects of biodiversity by supporting selected institutions in a transparent manner and in accordance with technical competence criteria;



To communicate biodiversity performance results in a frequent and transparent manner.


4. Intangible Assets
In accordance with its corporate strategies, EDP Brasil believes that it must prioritize intangible assets that add value to the organization’s core business, viz.:



Human Capital: by managing employees according to performance assessments, skill development criteria, and personal/succession plans.



Information Capital: by investing in and maintaining information systems, information security systems, infrastructure systems, and knowledge management applications required to support the organizational strategy.



Organizational Capital: by aligning employees’ efforts and motivation with the company’s corporate culture, innovability, and business strategy guidelines.



Marketing Capital: by managing the company’s brand and reputation.



Natural Capital: by managing the natural resources and ecosystem services on which the company has an impact or depends.


The company establishes guidelines and methods to identify, assess, protect, enhance, manage and measure these assets with the goal of preserving organizational knowledge so as to achieve its strategic vision.