G4 DISCLOUSURE ON MANAGEMENT APPROACH

Renewable energies have a strong influence in the local communities. Assets are usually constructed in remote locations, bringing positive economic benefits to the local communities, while contributing to the world fight against climate change.

Additionally, we believe that innovation is key to sustain competitive advantage and support growth. For us, innovation is about new technologies for more renewable energy – such as offshore wind – but that is not all: it is also about attitude, looking for ongoing improvement every day at what we do. A detailed disclosure of different projects lead by EDPR can be found at Innovation section. Moreover, EDPR in partnership with the different companies of the EDP Group, EDP Inovação is responsible for performing Research & Development (R&D) activity and its expenditure. A detailed disclosure of the total expenditure in R&D can be found at www.edp.pt.

Assets are usually constructed in remote locations, bringing positive economic benefits to the local communities.

G4 EC1 – DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

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G4 EC2 – FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATION’S ACTIVITIES DUE TO CLIMATE CHANGE
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The energy sector is responsible for approximately two thirds of GHG emissions, being the power sector the largest emitter of CO2. This suggest that we are not able to effectively fight against climate change without a shift in the way we produce energy, and in particular, electricity. Therefore, a key pillar of mitigation strategies is the decarbonisation of the energy sector through renewable energy deployment.

The company’s growth plans of pure renewable energy represent a solid commitment to foster the use of green energy sources. Moreover, we are committed to support the use the best technologies available in order to preserve natural resources and reduce pollution.

// For additional information on the transition towards a low carbon economy and renewable advantages, please refer to the Business Environment Section.

G4 EC3 – COVERAGE OF THE ORGANIZATION’S DEFINED BENEFIT PLAN OBLIGATIONS

Information on EDPR benefit plan obligations, can be found in Note 10 in our Financial Statements.

REDUCING ELECTRICITY PRICE

When wind production is available, the market price goes down, for the same level of electricity demand.

G4 EC4 – FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT

Information on EDPR financial assistance received from government through Production Tax Credits, Cash Grants and other Tax savings in the US, can be found in Income from institutional partnerships in US wind farms and Amortisation of deferred income (government grants) in our Consolidated Income Statement and additional details on Note 7, Note 12 and Note 31 in our Financial Statements.

G4 EC5 – RANGE OF RATIOS OF STANDARD ENTRY LEVEL WAGE COMPARED TO LOCAL MINIMUM WAGE AT SIGNIFICANT LOCATIONS OF OPERATION

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The values presented in the table above shows the average standard entry level wage compared to the local minimum wage for each one of the countries where we have presence. To protect the privacy of employees’ wages in those countries where our headcount is smaller, we do not disclose the information by country and gender.

100% of the new Directors
have been hired internally.

G4 EC6 – PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS OF OPERATION

Our Code of Ethics contains specific clauses of non-discrimination and equal opportunities in line with the company’s culture of diversity. This is reflected in our procedures for hiring people via a non-discriminatory selection processes. A potential employee’s race, gender, sexual orientation, religion, marital status, disability, political orientation or opinions of any other nature, ethnic or social origin, place of birth or trade union membership are not considered.

There are no specific procedures explicitly requiring local recruitment. However a high percentage of our employees are hired from the sam%e country in which the company operates.

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G4 EC7 – DEVELOPMENT AND IMPACT OF INFRASTRUCTURE INVESTMENTS AND SERVICES SUPPORTED

Wind and solar energy require infrastructure investments which benefit surrounding communities. This includes the reinforcement of existing electricity networks and the rehabilitation of existing roads or the construction of new roads.

Wind and solar energy require infrastructure
investments which benefit surrounding communities.

The investment in roads is necessary in order to transport heavy equipment (wind turbine components, power transformers, etc.) to the site during construction. The improved road system facilitates future maintenance activities after construction works, as well as improves access to remote locations for the surrounding communities. During the operation of our wind farms, these roads are maintained and further opportunities may be identified to increase the positive impact in the community.

EDPR invested  2.6 million  Euros to develop
community roads  and 5.6 million Euros
to improve public electric facilities.

The integration of our generation capacity may also require upgrades in the distribution and transmission grids that belong to the system operators. Those upgrades indirectly benefit the quality of service offered in the surrounding areas by minimizing electricity supply interruptions.

In 2015, EDPR invested 2.6 million Euros to develop community roads and 5.6 million Euros to improve public electric facilities.

G4 EC8 – UNDERSTANDING AND DESCRIBING SIGNIFICANT INDIRECT ECONOMIC IMPACTS, INCLUDING THE EXTENT OF IMPACTS

Renewable energy technologies are viewed not only as tools for mitigating climate change, but are also increasingly recognised as investments that can provide direct and indirect economic advantages by reducing dependence on imported fuels (and hence, improving trade balances), enhancing local air quality and safety, advancing energy access and security, propelling economic development, and, creating jobs.

//For additional information on indirect economic impacts of our energy, please refer to the Business Environment Section.

G4 EC9 – PROPORTION OF SPENDING ON LOCAL SUPPLIERS AT SIGNIFICANT LOCATIONS OF OPERATION

At EDPR, there is no specific policy or in-house procedure for preferring locally based suppliers.

However, under equal commercial terms, we choose local suppliers in order to enhance the socio-economic sustainability of the 12 countries across Europe and the Americas where we are present. In this way, around 99%* of the purchases were sourced from local suppliers (purchases in countries of operation of EDPR).

Additionally, during the construction of our projects, the local community can see an influx of temporary local construction workers and suppliers that provide a positive impact on the local economy.

//For additional information please refer to Suppliers Section.

99% of the purchases were sourced from local suppliers