Innovation and Sustainability

principles and policies

Innovation and Sustainability Policy

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;
  • Occupational environmental, health and safety management, ensuring environmentally responsible operations and a safe working environment for employees;
  • Management of biodiversity and ecosystem services, considering the impacts of our activities along the value chain;
  • Management of intangible assets, aiming at the maintenance of organizational knowledge to achieve its strategic vision.

PRINCIPLES OF ACTING

1. Innovability: innovation and sustainability to generate shared value

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. Create economic and social value

  • Integrate environmental and social aspects into the planning, decision-making processes, investments and activities of the company and its value chain, especially in the design and development phase of projects, changes in existing working conditions, critical suppliers and customers;
  • Support and encourage projects, products and services that enable the reduction of Greenhouse Gas (GHG) emissions and promote social and environmental benefits in the value chain, including education and investment in equipment and new technologies;
  • Promote forms of production based on renewable energies.

B. Promote eco-efficiency and environmental protection

  • Increase operational efficiency and establish, where applicable, reduction or efficiency improvement targets related to biodiversity preservation, efficient use of natural resources and energy, Greenhouse Gas (GHG) emissions, waste and effluents;
  • Evaluate, control, mitigate and compensate for the socio-economic and environmental impacts of the organization's projects and activities, highlighting the issues of waste and climate change, adapting to international standards of corporate social responsibility, environmental management and health and operational safety.

C. Promote 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.

D. Ensure the integrity and good governance

  • 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. Ensure transparency and dialogue

  • Ensure an open and trustful relationship with stakeholders by promoting consultation and communication channels, considering their contributions and expectations and reporting transparently and objectively on economic, environmental and social performance.

F. Develop human capital and diversity

  • Invest in the human capital of the company, encouraging the professional qualification and the development of leaderships and valuing the diversity in the business units, through specific programs that allow a quantitative and qualitative report of the evolution of the company; promoting an environment of respect and equity in any EDP Brasil operations.

G. Promote access to energy

  • Invest in projects and programs related to access to energy in less developed regions, loss reduction, energy efficiency and smart grids, accompanying the technological advances of the electric sector in an anticipated and proactive manner.

H. Support social development and citizenship

  • Promote social innovation, maximizing the positive social impact of the activity, and support social responsibility initiatives based on transparent criteria for evaluating the social return of invested resources.

2. Occupational environment, safety and health

EDP Brasil, a company that operates in all segments of the electricity sector, recognizes that the environment and health and safety are essential for the sustainability of the Group's operations. Therefore, it establishes as its commitments regarding the continuous improvement of environmental, occupational health and safety management:

  • Ensure compliance with legal requirements and non-authorization to carry out any tasks without due risks associated with Occupational Health and Safety and the Environment being controlled;
  • Identify and monitor occupational environmental, health and safety aspects 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 that contribute to the protection of the environment and to the prevention of Occupational Health and Safety and environmental pollution risks, contributing to energy efficiency, the rational use of natural resources and the reduction of emissions, waste and effluents;
  • Demonstrate commitment to continuous improvement of the Occupational Health and Safety and Environment processes, based on the establishment and review of periodic objectives, goals and action plans;
  • Promote initiatives aimed at disseminating knowledge about safe working conditions and healthy working practices, on the efficient use of environmental resources, 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 Occupational Health and Safety, minimize and mitigate impacts on the environment and climate change and adapt to their effects;
  • Ensure the investigation of incidents, occupational diseases, occupational accidents or environment, 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 and occupational safety and health;
  • 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 occupational health, safety, and environment so that all employees are encouraged to behave in a safe, healthy and sustainable manner.

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;
  • Minimize negative impacts on biodiversity resulting from its activities and enhance the positive ones. When the former cannot be minimized, it undertakes to compensate them in other areas;
  • 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 deepening scientific knowledge on the different aspects of biodiversity by supporting selected institutions in a transparent manner and in accordance with criteria of high technical competence;
  • Regularly and transparently disseminate their biodiversity performance.

4. Intangible Assets

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

  • Human Capital: through the management of its employees considering the evaluation of performance, the development of competencies and personal and succession planning.
  • Information Capital: through investments and availability of the information and security systems of the information, infrastructure and knowledge management applications required to support the organizational strategy.
  • Organizational Capital: through the alignment of efforts, commitment and motivation of employees with the organizational guidelines related to culture, Innovability and company strategy.
  • Market Capital: through brand management and company reputation.
  • 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 in order to maintain organizational knowledge to achieve its strategic vision.