The macro-economic context, where the challenges of sustainability are increasing, summing up with the diversity of EDPR’s stakeholders, results in a large and complex list of important issues, which must be prioritised according to its relevance and significance.

An issue is considered material when it influences the decision, the action and the performance of an organization and its stakeholders.

4.1.1. BACKGROUND AND OBJECTIVES

EDPR’s material issues were identified and the results achieved supported the preparation of this Annual Report, as reflected in the company’s management strategy and, in particular, in its agenda for sustainability.

4.1.2. METHODOLOGY

The methodology adopted is based on the Accountability standards and information is collected corporately and in business units.

Materiality is obtained by the interception of the issues identified by stakeholders with the importance given internally by the business.

The topics identified by the company are prioritized according to the frequency with which they appear in different categories analysed.

RELEVANCE FOR SOCIETY

Society vector resulted from the following analysis vectors:

REGULATION

Completed based on the recognized regulatory risk.

BENCHMARK

A benchmark was carried out with 25 international companies with operations in the electricity and gas market, and headquartered in countries where EDPR is present, chosen based on the external recognition of its sustainability practices: Cemig; Duke Energy; E.ON; Endesa; Iberdrola; Enel; Terna; GDF Suez; Gas Natural; RWE; EDF; Snam Rete Gas; Spectra Energy Corp; PPL CORPORATION; PSEG; Fortum; National Grid; CPFL Energia; Eskom; Nextera Energy; Acciona; Enel Green Power; AGL; Vestas; Gamesa.

INTERNATIONAL STUDIES

It was conducted a study of the materially more relevant topics, that were identified by studies of sustainability strategy analysis, oriented to gas or electric sector.

Analysed studies: 1) Sustainability Topics for Sectors: What stakeholders want to know? (Global Reporting Initiative); 2) Electric Utilities – Empowering Stakeholders (WBCSD); 3) Global Expert Perspectives on the state of Sustainable Development (GlobeScan); 4) GEO5 – for business: Impacts on a changing environment of the corporate world (UNEP); 6) Expect the unexpectable: Building business value in a changing world (KPMG); 7) What do investors expect from non-financial reporting? ACCA – Association of Chartered Certified Accountants. 8) Gestão Origami – Estudo Sectorial Energia Eléctrica, 2012 (specific study for EDPR Brasil).

SRI SURVEYS

Identification of the topics most frequently requested by ethical investors was conducted by consulting the following survey respondents: Ethisphere; SAM (Dow Jones Sustainability Index Support Company); Evalueserve (FTSE4Good Support Company); VIGEO; OEKOM; ISE (Corporate Sustainability Index managed by Bovespa, Brazil).

EDPR STAKEHOLDERS’ DIFFERENT EXPECTATIONS

EDPR updated results from the survey conducted to external stakeholders of the company in an internal workshop in order to evaluate whether the results obtained the previous year continued to be representative for the company stakeholders.

RELEVANCE FOR BUSINESS

EDPR conducted an internal workshop to define the vector importance for business. The workshop consisted on the filter of the topics that were not considered material for EDPR, and sorting the different topics by weighting each. The average contribution was considered the importance value for the business.

RESULTS (G4-18, G4-19, G4-20, G4-21, G4-26, G4-27)*

Results are presented aggregated based on the thematic proximity and their respective positioning in the global
matrix. The scope of this materiality matrix covers the whole value chain of EDPR.
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* Global Reporting Initiative (GRI) Disclosure Labels. To learn more about the GRI Directives, please visit www.globalreporting.org.