Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — ESG Presentation (September 2020)
27 slides from Edp's sustainability presentation, September 2020
Slide 1: ESG Presentation
ESG Presentation Lisbon, September 2020
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation
Slide 3: Our 2030 Vision
OUR 2030 VISION Leading the energy transition to create superior value Decarbonization >90% renewables Reduce 90% specific Become generation emissions (vs 2005 levels) coal-free Digitalization Decentralization >4 Mn decentralized >1 Mn clients with 100% smart grids solar PV panels installed e-mobili
Slide 4: We are in a privileged position to capitalize on the energy transition
We are in a privileged position to capitalize on the energy transition given our early-mover advantage We are a global leading renewables player… ... prepared for the future Source of generated electricity, TWh ~21 GW of renewables capacity1 deployed worldwide Non-renewables >€21 Bn deployed in rene
Slide 5: Build-out for renewables projects secured for 2019-22 increased from 40% to 84%
Build-out for renewables projects secured for 2019-22 increased from 40% to 84% of 7GW target for the period Renewables Capacity LT contracts secured for 19-22 Projects already secured Unprecedent execution GW Build-out GW; Aug-20 offshore +3.1 GW 6.0 GW solar Medium-term BP execution on 6.0 wind tr
Slide 6: Ocean Winds offshore JV fully in operation
Ocean Winds; Offshore JV fully in operation with assets transferred to be fully completed in 2020 PROJECT NAME TYPE CAPACITY COUNTRY UPDATE EDPR ENGIE STATUS Moray East Offshore-Fixed 950 MW Sold to JV 33.3% 23.3% U/Construction Tréport & Noirmoutier Offshore-Fixed 992 MW Sold to JV 29.5% 31.0% U/De
Slide 7: EDP pioneer in floating offshore wind technology
EDP was pioneer in developing floating technology for offshore wind, having installed in Portugal the largest turbine on a floating platform WindFloat Atlantic (Portugal) Benefits of floating offshore wind At farther distances from the shore, the wind blows 25 MW (3 x 8.4 MW) stronger and its flow i
Slide 8: We are anticipating shutdown of coal plants in Iberia
We are anticipating shutdown of coal plants in Iberia Coal sites in Iberia 1H20 Developments Aboño to be Coal production in Iberia: -76% YoY in 1H20, Aboño 1&2 (0.9 GW) converted to gas with all coal plants off in 2Q20, except Aboño 2 Soto 3 (0.3 GW) (COD 2022) Energy transition projects under devel
Slide 9: Hydro plants with pumping positioned to provide flexibility
The increase in intermittency will require higher flexibility and hydro plants with pumping are well positioned to provide that service Pumping – Conceptual scheme If the plant had no pumping Water inflow capacity, it would produce just We have 2.8 GW of pumped hydro in Portugal equivalent to 20GWh
Slide 10: Developing and testing uses of batteries across the value chain
We are also developing / testing uses of batteries across all the value chain of the power sector Hybrid projects renewables + batteries Networks Battery in Medium Voltage grid 480 kW | 360 kWh Cobadin wind farm, Romania Bailestin solar plant Romania 1.26 MW | 1.368 MWh battery 1.3 MW | 0.650 MWh ba
Slide 11: Hydrogen: innovative projects and strategic partnerships
Hydrogen: EDP has been building innovative projects and strategic partnerships to increase its knowledge and prepare to enter the market Sines Project Description Status Harbor proximity Power to Test the power-to-H2-to-power • Project kick-off Apr 2020 Natural gas infrastructure hydrogen in concept
Slide 12: Clients solutions: contributing to the energy transition
Clients solutions: Contributing to the energy transition and meeting customers’ needs ~10M client base with improved operations and new solutions Jun-2020 ~4.7 Mn Clients Focus on B2B ~3.5 Mn clients and new #1 Portugal Clients services to B2C We are able to generate, serve and innovate for our clie
Slide 13: Climate change implies significant physical risks
Climate change imply significant physical risks in terms of water availability and infrastructure resilience to extreme events Expected climate changes in Europe, 2050 Key impacts Changes in annual avg temperature Changes in annual precipitation +3° +3,5° +4° +4,5° +5° +5,5° +6° -40 -30 -20 -10 -5 +
Slide 14: Wildfires represent a significant risk to infrastructure
Wildfires represent a significant risk to EDP’s infrastructure, and thus we are taking several initiatives to prevent them Main iniciatives “The execution rates of “strips for vegetation Reinforcement of aerial inspections (+35% of inspected management”, […], which are in charge of public km vs. 201
Slide 15: Reducing exposure to hydro through asset disposals
We are reducing our exposure to hydro, through the disposal of some assets and by integrated energy management of the portfolio Disposal of 25% of hydro portfolio in Iberia: €2.2 Bn for 1.7 GW in Portugal Small hydro plants disposal In 2018, we sold: Transaction multiple: 14.4x EV/EBITDA2018 86 MW o
Slide 16: Diversity and Inclusion built into values and practices
EDP built the principles of Diversity and Inclusion into values and practices 2019 figures EDP IS FOCUSED ON DIVERSITY AND NATIONALITIES WOMEN Y&Z MOBILITY DEVELOPMENT GENERATIONS OF ITS 11,660 EMPLOYEES 44 25% 46% 8% 73% engagement level: 7% above market and 6% above Utilities sector(1). It demonst
Slide 17: Distinctive Green Positioning: recognized by ESG ratings
Distinctive Green Positioning: We have been consistently recognized by relevant ESG ratings on our sustainable corporate strategy #1 Global Top 3% Global #1 Global 93rd Percentile2 Ranking: Integrated Utilities Utilities (Score 4.5) Integrated Utilities Global Utilities (Score 90) (Score 68) 2019 ra
Slide 18: Corporate Governance
Corporate Governance EDP Shareholder Structure (Sep-2020) Corporate Governance Highlights Dual model China Three Gorges (PRC) Executive Board of Directors (EBD) and General and 21.6% Supervisory Board (GSB) All major corporate and strategic decisions scrutinized by the GSB after proposal of the EBD
Slide 19: Appendix
Appendix
Slide 20: We will pursue growth under a sustainable business model
We will pursue growth under a sustainable business model In 2022 we will achieve… Environmental standards 20% targeting 0 pollution accidents of employees volunteering >20% 100% EDP fleet will be electric employees with skills for the energy transition challenge – e.g. digital capabilities 100% +50%
Slide 21: In 1H20, renewables represented 80% of electricity generation
In 1H20, renewables represented 80% of our electricity generation, while capacity under construction doubled vs. Mar-20 to 2.0 GW Electricity generation in 1H20 Wind capacity evolution YoY TWh GW; Jun-20 0.8 Coal Other 5% 2.0 GW CCGT 2% 12% under construction 0.8 GW net Solar 0% of minorities as of
Slide 22: We are already a leading green energy utility
We are already a leading green energy utility EBITDA split by business segment (2020E) Source: Bernstein “European Utilities and Renewable: A primer on the EU Green initiatives (Green Deal, Taxonomy & Funding), 15-Sep-2020 22
Slide 23: List of wind & solar projects already secured for 2019-22
List of wind & solar projects already secured for 2019-22 Projects already secured Projects already secured Projects already secured MW MW MW Project Name MW Region CoD Project Name MW Country CoD Country MW Status CoD Prairie Queen 199 Kansas 2019 Aventura II-V 111 Brazil 2022E Timber Road IV 126 O
Slide 24: Remuneration of the Executive Board of Directors
Remuneration of the Executive Board of Directors EBD Remuneration EBD remuneration is composed by: Fixed Remuneration: Includes a retirement saving plan assigned to Annual variable Multi-annual Directors during their term of office, amounting in net terms to 10% remuneration remuneration of their fi
Slide 25: Management targets aligned with shareholder interests
Management targets are fully aligned with shareholder interests Performance indicators for Executive Board of Directors variable remuneration1 Annual2 Multi-annual3 TSR vs Eurostoxx TSR vs Eurostoxx utilities and PSI20 EPS utilities and PSI20 EPS 31% 25% 28% 28% Annual Multi-Annual Operating cash fl
Slide 26: ESG Reporting: TCFD
ESG Reporting: TCFD In 2018, EDP adhered to the TCFD recommendations and defined the commitment to internalize them until 2022. EDP discloses in its Sustainability Report information regarding the four categories of the TCFD. This represents a laudable effort to align and implement reporting on clim
Slide 27: ESG Reporting: Other Standards
ESG Reporting: Other Standards Besides GRI standards (Global Reporting Initiative), GHG Protocol, TCFD, Climate Disclosure Standards Board (CDSB), EDP also seeks alignment SASB - Sustainability Accounting Standards Board. We began reporting for the first time in our 2019 Sustainability report in acc
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