G4 DISCLOUSURE ON MANAGEMENT APPROACH

EDPR is a leading company in renewable energy. We produce clean and green energy, energy without emissions. Our strategy towards the environment is based on four pillars: the generation of CO2-free and water-free energy, a strategy to minimize impacts during the life-cycle of our wind farms, a culture of respect for the biodiversity and a culture of a responsibility and recycling.

EDPR is strongly committed to contribute to the protection of the environment and biodiversity through a proactive environmental management of its wind farms in operation, as is stated in our Environmental and Biodiversity policies. EDPR promotes biodiversity conservation and aspires to have an active role in contributing to the world’s objective of reducing biodiversity loss. Wind farms development and operation typically occurs in rural areas where wind resource is abundant and the operation of wind farms is compatible with current ecosystem. We define specific measures to monitor and promote the local fauna conservation in all our business activities as reflected in our company’s Biodiversity Policy.

The operation stage of wind farms, with a useful life of 25 years, stands as the core of our business. According to this, we are really conscious of the importance of proper management of environmental matters in our facilities in operation, which is assured through the Environmental Management System (EMS). Our environmental strategy focuses on three core aspects: legal compliance, management of environmental risks and continuous improvement. Numerous environmental appraisal and monitoring procedures are incorporated in all phases of the business processes ensuring that these central pillars are enforced.

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

EDPR Environmental Policy available at www.edprenovaveis.com 

G4 EN3 – ENERGY CONSUMPTION WITHIN THE ORGANIZATION

Wind turbines require a small amount of electricity to operate. This energy consumption is generally self-consumed. Given the intermittency of wind generation we sometimes need to consume electricity from the grid. The indirect CO2 emissions related to the consumed electricity is around 0.1% of the emissions avoided by the company.

EDPR produces about 300 times the electricity consumed

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G4 EN6 – REDUCTION OF ENERGY CONSUMPTION

Our activity is based on clean energy generation, and we produce about 300 times the electricity we consume. However, we are conscious about promoting a culture of rational use of resources and we promote many internal campaigns to promote sustainable behaviours as is explained in our website www.edpr.com.

G4 EN8 – TOTAL WATER WITHDRAWAL BY SOURCE 

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Generation from wind energy does not consume water in its operational processes. The water is consumed only for human use. The consumption of water per GWh generated accounts for 0.51 litres/MWh. Even so, the company actively seeks to adopt more eco-efficient practices. An example of this is that in 2015 38 substations had rain water collection and treatment systems installed to cover their own water supply needs, 7 installed during the year.

//For additional information about what sets EDPR apart in terms of environmental management, please refer to Sustainability section at www.edpr.com

G4 EN11 – OPERATIONAL SITES OWNED, LEASED, MANAGED IN, OR ADJACENT TO, PROTECTED AREAS AND AREAS OF HIGH BIODIVERSITY VALUE OUTSIDE PROTECTED AREAS

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EDPR Biodiversity Policy, available at www.edprenovaveis.com

pag100_2G4 EN12 – DESCRIPTION OF SIGNIFICANT IMPACTS OF ACTIVITIES, PRODUCTS, AND SERVICES ON BIODIVERSITY IN PROTECTED AREAS AND AREAS OF HIGH BIODIVERSITY VALUE OUTSIDE PROTECTED AREAS

Potential environmental impacts are analysed in detail in the environmental impact studies of the projects. Additionally feasible alternatives are assessed and preventive, corrective and compensation measures are determined.

The company has defined general procedures in its Environmental Management System to prevent, correct or compensate impacts in the environment. In addition, efforts are intensified with specific monitoring procedures in the small number of sites located inside or close to protected areas.

For additional information, visit our environmental information on the sustainability section our website, www.edpr.com.
Potential environmental impacts are analysed in detail in the
environmental impact studies of the projects.

G4 EU13 – BIODIVERSITY OF OFFSET HABITATS COMPARED TO THE BIODIVERSITY OF THE AFFECTED AREAS

In the small number of sites located inside or close to protected areas, we intensify our efforts with specific monitoring procedures, as defined in our Environmental Management System.

For additional information, visit our environmental information on the sustainability section our website, www.edpr.com.

G4 EN13 – HABITATS PROTECTED OR RESTORED

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After the construction period, it is our duty to return the site to its initial state. Therefore, we perform morphological restoration and reseeding works. In 2015, almost 143 ha of affected land were restored.

EDPR has been collaborating for the past years with the Natural Heritage Foundation of Castilla y León (Spain).

EDPR, through Fundación EDP, and FPN have decided to support a series of environmental actions tending to conserve the kite, which is a bird species especially protected in which EDPR has an interest within their strategy of managing biodiversity and environmental risks inherent in their activity.

 

The new agreement was signed in late 2014 and some of the actions considered were:

  • Design and construction of a fixed dunghill and two mobile dunghills in the province of Salamanca
  • Repair and improvement of existing dunghills (Lagunilla, La Alberca, The Jaque, etc …)
  • Performances of recovery and improvement of the species habitat
  • Awareness and environmental education activities
  • Acquisition of materials for combating poisonings
  • Radiolabeling 4 kite specimens.

 

G4 EN15 – DIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 1)

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EDPR’s Scope 1 emissions represent 2,307 tons of CO2 equivalent.1,743 tones are emitted by transportation related to our windfarms operation, 190 tones by gas consumption in our offices and the rest of it is related to SF6.

Part of the equipment used for electricity generation purposes contains SF6 gasses and during 2015 we registered emissions of 16.4 kg of this gas, which is equivalent to 375t CO2 eq.

Note: Fosil fuels emissions were estimated according to the DEFRA standard. SF6 gas conversion factor: 22.8 tCO2/kg SF6 (4th IPCC Assessment Report)

 

G4 EN16 – ENERGY INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2)

Our indirect emissions represent 0.1% of the total amount of emissions avoided and approximately 75% of the emissions are from the necessary electricity consumption by the wind farms. EDPR’s CO2 indirect emissions represent 25,765 tons, 24,860 tons driven by electricity consumption by the wind farms and 905 tons electricity consumption by the offices.

Note 1: The emission factors used are based on the following sources: Portugal – EDP, Turbogás, Pego, Rede Eléctrica Nacional (REN), and Entidade Reguladora dos Serviços Energéticos (ERSE); Spain – Red Eléctrica de España (REE); Brazil – Ministry of Science and Technology – SIN (National Interconnected System); USA – Emissions & Generation Resource Integrated Database (eGRID) for each state emission factor; Other European Countries – CERA, Global Insight.
Note 2: Electricity consumption emissions were calculated with the global emission factors of each country and state within the US.

 

G4 EN17 – OTHER INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 3)

Our work requires our employees to travel and commute. Based on our estimates, the transportation used by our employees accounted for a total of 5,168 tons of CO2 emissions.

Note: Transport emissions were calculated according to the DEFRA standard. Employee commuting emissions were calculated from data collected in a survey to all employees.

G4 EN19 – REDUCTION OF GREENHOUSE GAS (GHG) EMISSIONS

Our core business activity inherently implies the reduction GHG emissions. Wind and solar energy has zero carbon emissions, contributing to the world’s fight against climate change and does not produce harmful SOx, NOx, or mercury emissions, protecting valuable air and water resources. We estimated that our activities avoided the emission of 18,717 thousand tons of CO2.

Even though our activity is based on the clean energy generation, we are conscious about promoting a culture of rational use of resources. During 2015, we continued promoting initiatives that foster environmental best practices in our offices.

In 2015, 95% of the emissions related to windfarms and offices in Spain have been compensated by the certifications of origin obtained from our renewable energy generation. As a result, there is a reduction in the reported emissions year on year.

Note: To calculate the emissions avoidance, the energy generation has been multiplied by the CO2 eq emission factors of each country and state within the US. We considered the emission factor of just fossil fuel energy, as we considered that by increasing the generation of renewable energy, we are displacing these technologies, while other renewable technologies and nuclear plants will continue with its quota of generation.

Even though our activity inherently implies the
reduction GHG emissions, EDPR goes one step forward
compensating 95% of the emissions related to grid
connection of our windfarms and offices in Spain.

G4 EN23 – TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL METHOD

The main contribution to the hazardous waste produced by wind farms is related to oil and oil-related wastes such as oil filters or oil containers, used mainly for lubrication of the turbines. The consumption of this oil is based on certain pre-defined replacement time frequencies (between 2 and 5 years, based on the component, oil type and manufacturer). During 2015, the recovery rate was 73% impacted by a significant spill with a volume of 320 liters of oil and glycol spilled. The increase in hazardous wastes is mainly due to the contamined soil. This soil was removed and fully restored. Excluding this fact the recovery rate will have been 98% what certifies that the company has been actively working to improve the recycling rate of its hazardous wastes, through authorized waste haulers. The increase shown in non-hazardous wastes is driven by metals and glassfiber from 2 nacelles burned. These metals where fully recovered.

The following table summarizes the amount wastes generated per GWh in our facilities and the rate of recycling.

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Annual fluctuations in hazardous waste generated are heavily dependent on the pluri-annual oil replacement programs above mentioned. Non- hazardous wastes generated by the company include metals, plastics, paper or domestic garbage which is recycled in their vast majority.

Note 1: In Europe, the method of disposal has been indicated by the waste hauler, while in the US the disposal method has been determined by the organizational defaults of the waste hauler. Waste generated by EDPR does not include Brazil wind farms.
Note 2: For the purposes of this report, all wastes have been classified as Hazardous or Non- hazardous according to European Waste Catalogue; however, in each country where EDPR has a geographic presence, each wind farm is required to adhere to national law by following company procedures for handling, labelling, and storage of wastes to ensure compliance. In cases, like in the United States, when our operations generate small quantities of substances which fall into additionally-regulated categories–such as used oils and universal wastes–we follow strict standards for handling and disposal of these waste types to ensure we remain compliant with all applicable laws.
Note 3: Wastes ratios do nto include ENEOP data.

G4 EN24 – TOTAL NUMBER AND VOLUME OF SIGNIFICANT SPILLS

Given our activity and our locations, oil spills and fires are the major environmental risks the company faces. The Environmental Management System is designed and implemented to prevent emergency situations from happening. But in case they happen, the system covers the identification and management of these, including the near-miss situations.

EDPR defines as significant spill the ones above 0.16 m3 that reached the ground. Additionally, EDPR registers near miss situations, when registered incident does not reach the category of significant spill. In 2015, we had 1 significant spill with a total volume of 0.32 m3 of oil spilled, and 5 incipient fires with impact on 2 ha. All cases were properly managed: oil spills were confined early and contaminated soil was collected and managed. Additionally, 46 near miss were registered driven by small oil leaks that did not reach bare soil.

EDPR performs regular environmental drills to guarantee that our employees are familiar with the risks and have received the appropriate training to prevent and act, if necessary.

EDPR performs regular environmental drills to
guarantee that our employees are familiar with
the risks and have received the appropriate training to
prevent and act, if necessary.

G4 EN29 – MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL NUMBER OF NON-MONETARY SANCTIONS FOR NON-COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULATIONS

During 2015, the company received a total penalty of 280 euros due to a payment delay related to an environmental fee.

G4 EN30 – SIGNIFICANT ENVIRONMENTAL IMPACTS OF TRANSPORTING PRODUCTS AND OTHER GOODS AND MATERIALS USED FOR THE ORGANIZATION’S OPERATIONS, AND TRANSPORTING MEMBERS OF THE WORKFORCE

The main environmental impact was from employees traveling and commuting for business activities.

For additional information about our emissions registered due to employees’ transportation, please refer to the EN15 Indicator.

G4 EN31 – TOTAL ENVIRONMENTAL PROTECTION EXPENDITURES AND INVESTMENTS BY TYPE

In 2015, 3.3 million euros were invested and 8.2 million euros were expended in environmental related activities (includes personnel costs).

For additional information about environmental protection expenditures and investments, please refer to Note 42 in our Financial Statements.

3.3 million euros were invested and 8.2 million
euros expended in environmental related activities.

G4 EN 32 – PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING ENVIRONMENTAL CRITERIA

EDPR ́s Environment and Biodiversity Policies reflect a responsible management of the environment along the whole value chain. According to these policies, EDPR is committed to ensure that everyone involved, including suppliers, has the necessary, adequate skills for the purpose.

The suppliers of EDPR shall adopt all necessary measures to ensure strict compliance with all applicable environmental regulations as well as EDPR ́s Environment and Biodiversity Policies, internal norms, procedures and systems in place as regards to environmental management.

Specifically, EDPR has implemented, for all its wind farms in operation, an Environmental Management System (EMS) developed and certified according to the international standard ISO 14001:2004. The suppliers of EDPR shall know and understand the EMS. Also they shall be committed to make the EMS available to its employees and subcontractors, and to ensure from them the full compliance with the procedures set in EMS.

For answer to this indicator, it was considered all EDPR’s suppliers in Corporate, Europe and Brazil and in North America that had environmental systems (all platforms include suppliers above 500k euros): 83% of EDPR’s suppliers in Corporate, Europe and Brazil and 61% in North America had environmental systems.

///For further information please refer to Suppliers Section.

+1,000 employees from
28 nationalities.

G4 EN 33 – SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE ENVIRONMENTAL IMPACTS IN THE SUPPLY CHAIN AND ACTIONS TAKEN

EDPR carried out a study to characterize its Supply Chain, including the analysis of the exposure to economic, social and environmental risks. This analysis was performed using ESCHER (Efficient Supply Chain Economic and Environmental Reporting) methodology developed by PwC. For the ESCHER calculation routine PwC used EDP Group 2014 data.

The study allowed EDPR to determine the following results:

– 300* thousand ton GHG emissions associated to EDPR’s direct and indirect Supply Chain, 5%* of which related to Tier1 Suppliers.

Through this study, EDPR aims to identify areas where should focus its improvement activities in order to significantly reduce its exposure to risk and optimize impacts.

///For further information please refer to Suppliers Section.

G4 EN34 – NUMBER OF GRIEVANCES ABOUT ENVIRONMENTAL IMPACTS FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISMS

EDPR has no knowledge of any environmental formal grievance recorded during 2015 in any of its grievance channels.