Stakeholders Relationship

principles and policies

Relationship with Stakeholders Policy

The Relationship with Stakeholders is a strategic priority for the EDP Brazil Group, in the means that, an open and transparent dialogue with its interested 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 important practices for accountability in the following :dimensions: economic, social, environmental and reputational, so as reception of feedback, allowing EDP Brazil Group to constantly reevaluate itself, and:
  • The attendance to 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/or conflicts.

1.1.1. Guiding Commitments

The Relationship with interested 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 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 have an impact on the organization, ensuring that minorities have the same capacity of involvement of the remaining Stakeholders;
  • To identify in a dynamic and systematic way the Stakeholders that influence and are influenced directly and indirectly by the EDP Brazil Group and its activities, as well as the 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, in order to build closer, stronger and lasting relationships, ensuring that Stakeholders' complaints are answered and managed in an appropriate manner. 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 take into account the characteristics of the different stakeholders, and;
  • Respond to the relevant issues identified by the Stakeholders within a reasonable time, taking into account 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 certain 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, as well as 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: NGOs, 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, as it is based on its Code of Ethics and the fundamental and universal principles of Human Rights.

In addition, it promotes the free trade union association and maintains a permanent channel of negotiation and dialogue with the union representation of the collaborators, aiming at the resolution of conflicts of a labor nature, the regulation of labor relations and the conditions of employment resulting in normative agreements and processes of voluntary action.

In order 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, in order to avoid the occurrence of acts, omission , Or the creation and / or maintenance of situations of favor or irregular situations characterized by illicit acts.

The EDP Brazil Group guarantees the implementation of these measures through the creation of adequate internal structures and promotes 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 the principles of this policy and the EDP Brazil Group Code of Ethics. Any and all retaliation is absolutely 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 / or child labor, with sexual exploitation independent of form, with restrictions on human freedom and condition, with violence, torture and / or arbitrary detention, moral and / or sexual harassment, or discrimination in all its forms.

The EDP Brazil Group promotes 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.

1.3.4. Public Agents

Public Agents are an important Stakeholder 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 establishes that:

  • 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.

The realization of these relationships, in the various spheres of Public Agents, respects the legislation and procedures in force, with the purpose of documenting 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 the limits aligned with best market practices and that respect, the ethical principles described in the Code of Ethics, in order to avoid situations that constitute undue benefits for any of the parties involved, as established in the Standard Gifts and Gifts.

1.3.6. Social Investment

Social Investment is understood as the "voluntary transfer" of companies' resources in a 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 flows of social capital, in parallel with the flows of financial and natural capital.

In this way, Social Investment is one of the forms of action that contributes to the social license to operate and strengthen the company's image, consolidating its role in society. The Social Investment practices represent the company's commitment to the social, environmental and cultural development of the communities where the company operates and contribute 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 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 to the preservation of 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:

  1. To develop practices of corporate responsibility and integrity with suppliers, ensuring compliance with the law and other commitments and procedures adopted by EDP Brazil Group and establishing a Code of Conduct for Suppliers;
  2. 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;
  3. Ensure equal treatment, transparency and impartiality by ensuring a fruitful dialogue respecting mutual agreements with suppliers;
  4. Establish consultation and communication channels with suppliers, promoting initiatives that improve economic, ethical, social and environmental performance;
  5. Promote and adopt a 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;
  6. 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;
  7. Eliminate conflicts of interest that may impair the objectivity and independence of the decision process;
  8. 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;
  9. Establish social, labor and safety, hygiene and health requirements in contracting and subcontracting, ensuring compliance and permanent monitoring;
  10. 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;
  11. Encourage continuous improvement, innovation and the sharing of good practices in terms of sustainability, efficiency, quality of goods and services and to promote new business solutions / opportunities;
  12. Define organizational, negotiation and contracting models that value Sustainability throughout the value chain, establishing objectives and verifying the fulfillment of its goals.