OBJECTIVE

Formalization of the principles that guide the company's relationship with stakeholders, which influence or are influenced by the company's activities, aiming at the generation of shared value, identifying opportunities between the parties, and the management of social and relationship capital.

OPERATION PRINCIPLES

The Relationship with Stakeholders is a strategic priority for the EDP Brazil Group, in the means that, open and transparent dialogue with its interesting parts is fundamental to ensure:

The viabilization of strategic planning and performance of excellence, the strengthening of corporate governance and the possibility of searching for innovative solutions;
Strengthen the relationship of trust, sharing knowledge and relevant information, anticipating challenges and identifying new opportunities for cooperation with Stakeholders;
The implementation of essential practices for accountability in the following dimensions: economic, social, environmental, and reputational, so as a reception of feedback, allowing EDP Brazil Group to reevaluate itself continually, and:
The attendance to the legal requirement, especially at times of impact assessment from a new development of EDP Brazil Group and, if necessary, be an instrument for crisis management and conflicts.

1.1.1. Guiding Commitments

The relationship with interesting parts – EDP Brazil Group Stakeholders is based on four axes or guiding commitments: understanding, communicating, trusting, and collaborating.

1.1.2. Understanding

We dynamically and systematically identify the Stakeholders who influence and are influenced by the EDP Brazil Group, analyze and seek to understand their expectations and interests. How we should act:

Map, identify and evaluate the risks and impacts generated in the local community, society or other Stakeholders resulting from the company's activities;

Be accountable to the agents over whom the organization has an impact and the agents who affect the organization, ensuring that minorities have the same capacity of involvement of the remaining Stakeholders;

To identify dynamically systematically the Stakeholders that influence and influenced directly and indirectly by the EDP Brazil Group and its activities, as well as  issues pointed out as relevant by the Stakeholders, and;

Prioritize in a balanced and equitable manner the Stakeholders, and the subjects pointed out by them as relevant.

1.1.3. Communicating

We promote a two-way dialogue with Stakeholders, through information and consultative actions. We hear, inform, and respond to Stakeholders in a consistent, clear, rigorous, and transparent manner to build a closer, more robust, and lasting relationships. Ensuring that Stakeholders' complaints are answered and managed appropriately. How we should act:

Ensure that Stakeholders have access to information by establishing direct, efficient and direct bidirectional communication channels, actively providing clear, comprehensible and accurate information, ensuring dissemination and dissemination to the various stakeholders, promoting and providing appropriate means of engagement;

To proactively consult and listen to the concerns, interests, and expectations of Stakeholders, to prepare auscultation plans and engagement strategies that consider the characteristics of the different stakeholders, and;

Respond to the relevant issues identified by the Stakeholders within a reasonable time, considering the characteristics of the stakeholders involved.

1.1.4. Trusting

We believe that fostering a climate of trust with Stakeholders is crucial to establishing stable and long-term relationships. Our relationship with stakeholders is based on values such as transparency, integrity, and mutual respect. How we should act: 

Establish a transparent relationship with the Stakeholders, ensuring that they know and understand the objectives of the EDP Brazil Group;

Inform the Stakeholders about the economic, environmental and social impacts and risks arising from the activity of the EDP Brazil Group or a specific project, which could significantly influence them;

Respect the views and rights of Stakeholders, treating them fairly, without discrimination, respecting diversity and their legal rights, and;

Ensure that the relationship actions are based on the values, policies, and ethical principles of the EDP Brazil Group.

1.1.5. Collaborating

We collaborate with Stakeholders in the construction of strategic partnerships that bring together and share knowledge, skills, and tools, thus promoting value creation in a differentiating way. How we should act:

Integrate into the company's strategy the relevant contributions identified by the Stakeholders;

Share knowledge and skills with Stakeholders, aiming at risk management and identifying the set of opportunities;

Work cooperatively in building solutions, establishing strategic partnerships that produce positive results for both parties, including prevention, mitigation and compensation of impacts generated by our operations and in cases where residual impacts remain, offset or neutralize the risks and impacts On the Stakeholders, and;

Share the performance results of the EDP Brazil Group and the results of the different relationship processes with Stakeholders, providing, where appropriate, relevant performance information.

1.2. Stakeholders Segmentation Model

The Stakeholders of the EDP Group are all entities or persons that influence or are influenced by the Group's activities, products, and services. They are organized into four segments:

Value Chain: Employees, Trade Unions, Suppliers, Scientific Community, Clients, Consumer Associations, and Business Associations.

Market: Competition, Financial Entities, Shareholders, and Investors.

Democracy: Government, Public Organs, Regulation, National Congress, Assemblies, Political Parties, and International Institutions.

Social and Territorial Organization: Civil Society Organizations, Local Communities, Municipalities, Municipalities, Media, and Leaders of Opinion.,

1.3. Main Highlights in the Relationship with Stakeholders

1.3.1. Union Relations

The EDP Brazil Group acts with transparency and respect in union relations. It is based on its Code of Ethics and the fundamental and universal principles of Human Rights.

Also, it promotes the free trade union association. It maintains a permanent channel of negotiation and dialogue with the union representation of collaborators, aiming to resolve conflicts of a labor nature, the regulation of labor relations, and the conditions of employment resulting in normative agreements.

To guarantee this process, the management of the EDP Brazil Group attributes to the People Management area:

• Receive claims, clarify doubts and provide access to composition and collective bargaining;
• Conduct collective negotiations at a local level and can be carried out by third parties duly accredited by the companies;
• Recognize the legitimacy of trade union representation;
• Ensure compliance with the Collective Labor Agreement.

1.3.2. Illicit Acts

The EDP Brazil Group acts with transparency and respect in its relationship with all stakeholders, as it is based on its Code of Ethics and the fundamental and universal principles of Human Rights.

The EDP Brazil Group adopts and disseminates measures to combat all forms of Corruption, Administrative Improbity, Money Laundering, Free Competition, Predatory Prices, Conflict of Interests, Bribery and Cartel formation, to avoid the occurrence of acts, omission, Or the creation and maintenance of situations of favor or unstable conditions characterized by illicit acts.

The EDP Brazil Group guarantees the implementation of these measures by creating adequate internal structures, planning, and continuous evaluation of the Anti-Bribery Management System. In addition to promoting corporate oversight through the Ethics Committee, which is responsible for receiving and monitoring communications regarding any evidence of illicit acts by the company and its third parties.

The EDP Brazil Group provides a communication channel in which its employees and all interested parties can indicate conduct that they deem inappropriate to this policy's principles and the EDP Brazil Group Code of Ethics. All retaliation is repudiated.

1.3.3. Human Rights

The EDP Brazil Group acts with full respect for Human Rights, within national and international legislation, participating in several international agreements to protect these rights, and incorporating in its strategic and operational activities all the necessary measures to ensure that there is no direct or indirect relationship with slave and child labor, with sexual exploitation independent of form, with restrictions on human freedom and condition, with violence, torture, and arbitrary detention, moral and sexual harassment, or discrimination in all its forms.

The EDP Brasil Group promotes Human Rights through freedom of opinion and expression, the diversity of cultures and ethnicities, the health and well-being of all Stakeholders affected by its activities, free organization and association, and freedom of conscience and religion.

To ensure respect for Human Rights in its operations and its value chain, the EDP Group establishes management guidelines and procedures, including assessing, preventing, and mitigating risks and impacts.

1.3.4. Public Agents

Public Agents are important Stakeholders in the relationship with EDP Brazil Group. Due to the public/ sector exposure of this stakeholder and the legislation governing the relationship with the Public Agent, it is necessary to ensure the alignment and compliance with the ethical principles established in the company's Code of Ethics, internal policies, norms, and procedures, and current legislation. In this way, the EDP Brazil Group shows:

• The entire relationship with public agents is ethical and transparent as provided in the Code of Ethics, which regulates any behavior of exchange of privileged information, the benefit of parties interested in gaining an advantage directly or indirectly.
• All situations that may cause a perception of obtaining an undue advantage due to the exercise of the position, mandate, function, employment or activity of the public agent, are reported for the appropriate treatment.
• Special guidance to mitigate risks of anticompetitive conduct, for higher risk functions.
• Provides for collecting contributions to expand and ensure compliance.
• Provides for a periodic review of the Code of Conduct and Corporate Policy.
• The realization of these relationships, in the various spheres of Public Agents, respects the legislation and procedures in force, to document the subjects dealt with and ensuring the suitability of the process.

1.3.5. Gifts and Presents

The exchange of courtesies is common practice in many countries and is part of the relationship between Stakeholders. In the EDP Group, courtesies respect amounts and values within acceptable parameters and within limits aligned with best market practices and that respect, the ethical principles described in the Code of Ethics and the Internal Standard for Gifts, Presents, and Events, to avoid situations that constitute undue benefits for any of the parties involved.

1.3.6. Social Investment

Social Investment is understood as the "voluntary transfer" of companies' resources in planned, systematic, and monitored way, for public purposes, thus representing a form of corporate contribution directed at meeting community needs and priorities, with a focus on Transformation of their social reality. EDP Brasil systematically evaluates the positive and negative impacts its activities generate on people and society, including human capital (experience and knowledge), social capital (shared value, institutions), and relational capital (connections and network). Measuring these concepts, associated with well-being and socioeconomic impact, can facilitate the analysis of social capital flows, in parallel with the flows of financial and natural capital.

Social Investment practices represent the company's commitment to the communities' social, environmental, and cultural development where the company operates and contributes to the following objectives:

• Promote the insertion of the company in the communities surrounding the premises, enterprises and prospecting new business;
• Contribute to the generation of economic, social and environmental value for society;
• Contribute to the social license to operate;
• Contribute to the management of socio-environmental impacts;
• Contribute to the development of public policies and collective agendas for sustainable development;
• Strengthen the image and public recognition of the company, and;
• Contribute to the quality of life and preserve the socio-environmental balance of the regions of their enterprises.

1.3.7. Supplier Management

The EDP Brazil Group promotes Sustainability and Relationship in the Supply Chain according to the following 12 commitments:

• To develop practices of corporate responsibility and integrity with suppliers, ensuring compliance with the law and other obligations and procedures adopted by EDP Brazil Group and establishing a Code of Conduct for Suppliers;
• Establish environmental requirements in contracting and promote the adoption of the Environmental Policy of the EDP Group, preventing and mitigating adverse impacts arising from activities;
• Ensure equal treatment, transparency, and impartiality by ensuring a fruitful dialogue respecting mutual agreements with suppliers;
• Establish consultation and communication channels with suppliers, promoting initiatives that improve economic, ethical, social and environmental performance;
• Promote and adopt conduct of integrity and moral and ethical elevation in the supply chain, by applying the Code of Ethics of the EDP Group, refraining from any practices of bribery, corruption, extortion or fraud;
• Promote the confidentiality of all shared information, ensuring that it is not transmitted to third parties and that it respects the rights of all parties involved;
• Eliminate conflicts of interest that may impair the objectivity and independence of the decision process;
• To promote respect for human dignity and human rights and to reject any form of forced labor or child labor, persecution, discrimination, abuse or other forms of physical or psychological violence;
• Establish social, work and safety, hygiene and health requirements in contracting and subcontracting, ensuring compliance and permanent monitoring;
• To support the economic, ethical, social and environmental development of the local communities in which the EDP Brazil Group operates and cooperate with sectoral and international organizations for the joint promotion of Sustainability in the supply chain;
• Encourage continuous improvement, innovation and the sharing of acceptable practices in terms of Sustainability, efficiency, quality of goods and services and to promote new business solutions/opportunities;
• Define organizational, negotiation, and contracting models that value Sustainability throughout the value chain, establishing objectives and verifying the fulfillment of its goals.

1.3.8. Interaction with stakeholders

Bearing in mind that the relationship with stakeholders is a strategic priority for the EDP Brasil Group, the Institutional Relations and Stakeholder Management Department, guides employees who play this role of interacting with external stakeholders, seeking guidance from the area on the main procedures adopted by the board. It also informs the relationship with this stakeholder for the area within its scope, the responsibility to carry out the management of information regarding the interested parties.