For the EDP Institute, sustainability represents a new approach of doing business, which:

• promotes social inclusion, respecting the cultural diversity and the interests of all audiences, directly and indirectly, involved in the business;

• reduces and / or optimizes the use of natural resources and the impact on the environment, preserving the integrity of the planet for future generations, without neglecting economic and financial profitability;

• observes environmental criteria throughout the value chain: suppliers, logistics operators, customers, employees and consumers.

For the EDP Institute, social innovation is a concept that is directly linked to sustainability. The EDP group being a sustainable company to develop and practice a new approach of doing busines, based on the following assumptions:

• It should promote social inclusion, respecting the cultural diversity and the interests of all public, directly and indirectly, involved or impacted by the company and its operations;

• It should reduce and / or optimize the use of natural resources and reduce the impact on the environment, preserving the integrity of the planet for future generations, taking into account economic and financial profitability in the development of the present business;

• You must observe and seek to incorporate the two aspects mentioned above into the entire value chain: suppliers, logistics operators, customers, employees, consumers and the community.

The EDP Group is committed to promote access to energy in developing countries by focusing on regions that are not connected to the electricity grid, helping to break the cycle of poverty that characterizes them. Since access to energy is a precondition for promoting development, social innovation is present in strategies, processes and initiatives that are implemented in the development of projects with the support of the EDP Institute.

InovCity

InovCity was created in 2011 by EDP Bandeirante, in partnership with the Secretary of Energy of São Paulo and the City of Aparecida (SP). It is an innovative project that will transform Aparecida into the first Brazilian city with an intelligent energy grid (smart grid). The project provides the implementation of a smart metering solution in approximately 13,000 places of consumption and pilot projects of electric mobility, distributed generation, energy efficiency, efficient public lighting and others.

In line with the strategic guidelines of the distribution business unit, the Instituto EDP invested part of its budget and developed initiatives unique to the social development of Aparecida. In addition, it directs selected resources and projects in its two strategic axes, to benefit the municipality, increasing the social impact of the Inovcity Project.

In partnership with the company DIDACTA and the Municipal Secretaries of Education and Tourism of Aparecida, the Education for Tourism Project was created. Teachers and students of elementary school, cycle I, discussed the subject in the classroom and contributed to the production of a set of books that will compose the curriculum in 2013. This need was identified in a survey conducted with pilgrims, residents and entrepreneurs of Aparecida.

Another relevant initiative is a project presented by the Municipal Council for the Rights of the Child and the Adolescent of Aparecida, carried out by the GAMT - Talent Advisory and Mobilization Group, which uses technology and innovation as tools for expanding knowledge and as a background for the cognitive and behavioral development of adolescents in the public school system.

In addition, as a way of articulating all the social initiatives of the municipality, a Social Innovation Hub is being created with the support of the EDP Institute. The Hub is an innovative concept, which proposes to aggregate several projects to increase the impact of its intervention with the communities.

The Inovcity Project will continue supporting and developing innovative actions, as well as directing efforts and resources for projects to be developed in the municipality, which makes the participation of the EDP Institute essential and strategic for the success of the initiative.