Slide 1: ESG Presentation November 2022
ESG PRESENTATION November 2022
Slide 2: Our Purpose
Our Purpose We are creating a new energy on the planet. More inclusive. More shared. Greener. Promoting renewable energy on a worldwide scale. Using the power of wind, sun and water, to be all green by 2030. Accelerating decarbonization, to achieve carbon neutrality. Leading the way in sustainabilit
Slide 3: EDP's journey on Sustainability started in the '90s
EDP’s journey on Sustainability started in the ’90s. Since then, we are shaping the energy future August 2022 1990 | 2000 2007 2018 1 st Sustainability- linked loan issuance Wind generation EDPR IPO 1 st Green Bond 2010 Issuance kick-off New remuneration policy indexed to the Group’s In 1993, Enerno
Slide 4: Committed to continue to lead the Energy Transition
We have started our journey in Renewables over 2 decades ago and are committed to continue to lead the Energy Transition By 2025 By 2030 €24 Bn >50 GW CAPEX in energy transition renewables additions Leading the energy transition to create superior value 4 GW/yr 100% renewables deployed renewables ge
Slide 5: Our commitments
Our commitments Accelerated and ESG excellence and sustainable growth attractive returns Step-up green growth Leading the energy transition to ESG reference Distinctive and resilient portfolio create superior value Green leadership positioning Solid balance sheet Strong return visibility Future-proo
Slide 6: EDP Today - a global company, leader in the energy sector
EDP Today - a global company, leader in the energy sector, present in 29 markets throughout different stages of the value chain % Weight on EBITDA 2021 ~62% Renewables Wind, Solar & Hydro ~36% Networks Distribution Transmission 21% 32% EBITDA Client solutions & €3.7 Bn ~3% energy management 20% New
Slide 7: Growth aligned with the UN 2030 agenda for Sustainable Development
We will continue to pursue growth aligned with the UN 2030 agenda for Sustainable Development… Core commitments 100% of renewables Coal-free by 2025 generation by 2030 Carbon Neutral by 2030 Additional Commitments Build more developed and sustainable cities Ensure sustainable use Ensure sustainable
Slide 8: Environment
Environment Networks Coal phaseout Circular Biodiversity Renewables Growth expansion & Economy Efficiency ESG Presentation 8
Slide 9: We plan to add 20GW, focused on wind and solar
We plan to add 20GW, with a major focus on wind and solar, fully aligned with the Energy Transition Investing in multiple renewable energy … and focusing our growth in low-risk sources… geographies North America(1) Europe Wind onshore Solar +8.8 +6.7 GW GW 9.1 20 GW1 8.0 (40%) ~45% ~35% (46%) Gross
Slide 10: 55% of our 20 GW target already committed
55% of our 20 GW target for capacity additions is already committed, evenly split per geography North America 4.4 Europe 3.5 50% committed GW 52% committed GW 1.5 GW 2.8 GW 0.2 GW 6.7 1.5 GW 0.8 GW 1.0 GW 0.2 GW post 2025 8.8 20 GW1 1.1 GW Gross post 2025 Additions 2021-25 1.4 South America 2.2 APAC
Slide 11: New technologies & business models for long-term competitiveness
Our eager to shape the energy future lead us to develop new technologies & business models, ensuring long-term competitiveness & innovation Floating Floating solar Hybrid Green Hydrogen Offshore projects & Storage Opportunity Pioneers in developing floating Floating solar as technologic Hybridizatio
Slide 12: Investment in Electricity Networks will be crucial
Investment in Electricity Networks will be crucial to ensure quality, safety and efficiency, while enabling the energy transition Backbone of the energy … requiring significant transition… investment 1.6 ~€3.4 Bn CAPEX 1.1 21-25 Ageing Increasing generation infrastructure in connected to need of ren
Slide 13: Coal-free globally by 2025 and 100% renewables by 2030
We are committed to become coal-free globally by 2025 and to reach 100% generation from renewables by 2030 Thermal Generation Phase-out Plan Aboño 0.9 GW Hydrogen Soto 3 Closure programmed until 2025 YE 0.3GW Storage Coal Iberia Los Barrios 12% 0% 0.5GW % Coal of % Coal of Backup for weak hydro tota
Slide 14: Just Transition in becoming coal-free by 2025
We aim to ensure a Just Transition in the process of becoming coal-free by 2025; This path started in 2021, with Sines coal plant shut-down Sines coal plant FAS – Futuro Ativo Sines Best practice for Just Transition from coal to RES by the World Economic Forum Largest coal power plant in Take Respon
Slide 15: Transition plans for remaining carbon power plants
Transition plans for the remaining carbon power plants are being developed around 4 priorities, with several projects underway Social support programs • Stakeholder involvement programs underway at all transition sites (License to operate) • Transition agreements signed and underway in Soto, Puente
Slide 16: Aiming for 1.5 GW of hydrogen by 2030
Aiming for 1.5 GW by 2030, EDP has H2 projects under development across multiple geographies, with several supporting the transition of its thermal assets Hydrogen with a Industrial feedstock for refineries and chemicals Examples of H2 projects in EDP’s thermal assets key role in promoting the Indus
Slide 17: Reducing carbon emissions to become carbon neutral by 2030
We are ramping up our efforts to reduce carbon emissions and become carbon neutral by 2030 (2) # Specific CO2 emissions (gCO2/kWh) (1) % % of Coal of total generation # Scope 3 CO2 emissions (MtCO2) Strong track record and short- Further acceleration of the Carbon neutral with term accomplishments e
Slide 18: Circular economy approach
A greener future must follow a circular economy approach, from assets design to dismantling, maximizing components recovery Accelerate Circular Economy EDP is fostering circular economy 2025 Targets throughout the assets’ life stages Reduce total waste by 85%1 • Blade Recyclability being studied wit
Slide 19: No Net Loss
We systematize and optimize best management practices to mitigate impacts on biodiversity • Monitor collisions of birds and bats and resulting effects • Limit accesses that disturb sensitive species and habitats No new assets in UNESCO’s • Mitigate environmental impacts in all phases of wind World H
Slide 20: Social
Social Safe and Diverse Sustainable Value Local Communities, Workplace Chain Just Transition1 and access to energy ESG Presentation 20 1. Covered in slides 14 and 15
Slide 21: Diverse, fair and inclusive Workplace
Maintaining the commitment to provide a diverse, fair and inclusive Workplace… 12,992 Employees 9M22 Nationalities Gender Disabilities 9M22 58 3% 27% 28% 1.4% Nationalities Working outside of Women among total Women among Among total origin countries employees management employees 2025 5% 30% 30% 2%
Slide 22: #Playitsafe Safety program
…While also committed to provide a safe workplace Establishing a strong and present safety culture #Playitsafe Safety program EBD Sponsorship Visible commitment to Zero accidents and no the program personal harm Safety Culture Transversal Across all geographies Preventing accidents by ensuring aware
Slide 23: Full respect for Human and Labor Rights
EDP ensures full respect for Human and Labor Rights in its operations and by all its direct suppliers Assuring Tier 1, direct suppliers Tackling Tier n, indirect suppliers Global Procurement Unit ensures the integrated Working at sectoral level to develop a traceability and coordination of registrat
Slide 24: Social accountability throughout the energy transition
We stand for social accountability throughout the energy transition Through inclusive and responsible …we nurture symbiotic relationships with initiatives… local communities1 Building foundations for RES investment in Africa • Partly through A2E fund to combat energy poverty • Part of €20m investmen
Slide 25: Governance
Governance Governance Diverse and Elevated code Model independent of conduct ESG Presentation 25
Slide 26: Dual Model of Corporate Governance
Dual Model of Corporate Governance, ensuring separation of functions and specialization of supervision Number of members Corporate Entities Dual model Corporate Bodies 3 Other Statutory Bodies General Board of the • Since 2006, EDP adopted a dual corporate governance model: General Shareholders’ Mee
Slide 27: Remuneration aligned with shareholder interests and ESG
Management targets are fully aligned with shareholder interests and ESG performance EPS recurring Short-Term ESG KPIs TSR vs Eurostoxx utilities 20% Remuneration 20% Dow Jones Sustainability Index Results Long term FFO/Net Debt Individual performance 10% Performance in employees’ yearly climate stud
Slide 28: General Remarks
General Remarks ESG Green ESG Performance Financing Alignment and Reporting ESG Presentation 28
Slide 29: We measure our ESG performance against ambitious targets
We measure our ESG performance against ambitious targets Target Target Indicator Unit 9M22 9M21 ∆% 2025 2030 Revenues aligned with EU taxonomy % 47% 66% -19p.p. 70% >80% Scope 1 & 2 Emissions Intensity gCO2/kWh 182 167 9% ~100 0 Renewables Generation % 70% 76% -5p.p. 85% 100% Coal Installed Capacity
Slide 30: ESG excellence recognized by top-tier institutions
Our ESG excellence has been consistently recognized by top-tier institutions Briefing Scale Score Ranking Entity (high to low) Selects the most relevant criteria in each ESG #1 Vs. global dimension based on their weight in the assessment 91 and their current or expected significance for the 100 to 0
Slide 31: Capital structure will increasingly reflect sustainability
EDP’s capital structure will increasingly reflect its commitment to sustainability Sustainable financing driven by green bonds and Share of sustainable funding sustainability-linked instruments ~€8.8Bn green bonds and hybrids already placed since 2018, aligned with our Sustainability Strategy +12 bp
Slide 32: Promoting adoption of recognized reporting standards
We will continue to proactively promote the adoption of the most recognized reporting standards Our reporting is aligned with several EDP is involved on different task forces2 on disclosure standards1 Sustainable Finance Supporting the developments of the Sustainable Finance GRI Standard Since 2003
Slide 33: Unique positioning to seize ESG opportunities
We have a unique positioning to seize ESG opportunities across several dimensions 100% Carbon Environment renewables generation neutral ESG aligned €300M €2Bn 2030 Equity Social Investments1 Innovation and Social Digitalization2 Top Aligned with Green Bonds Quartile ESG criteria Governance ESG ratin
Slide 34: All green
Leading the energy transition to create superior value All green 34