G4 DISCLOUSURE ON MANAGEMENT APPROACH

EDPR growth over the past years has been supported by our employees’ flexibility and team work that have provided the company with the ability to adapt to a changing business in the different realities of the markets where we have presence. As a result, our employees’ growth and development are key priorities – we strive to offer outstanding training programs and job opportunities, to provide an interesting career within the
Company to our employees and to prepare them for future challenges. As a result, geographical and functional mobility is a fundamental pillar in our HR strategy.

We are also committed to recognize the work and talent of our employees, so we are committed to offer a competitive compensation and benefits packages. The compensation policy addresses the needs of local markets and provides flexibility to adapt to the specifics of each region. The fixed base compensation is completed by a variable component that depends on an individual evaluation measured against individual, area and company KPIs.

In addition, we understand the importance of maintaining a balance between work and personal commitments. This understanding has led to an increase of employees’ satisfaction, while boosting productivity and morale. Work Life Balance (WLB) for us is more than measures for employees with children, it is a set of initiatives to promote a positive work climate where employees can develop their career and give their best. And we believe that WLB must be a shared responsibility. We seek to constantly improve our WLB program and provide the most suitable benefits to employees. We even define often specific benefits that are tailored and applicable to certain countries where EDPR is present.

Guaranteeing the health, safety and well-being of our employees is top priority at EDPR. This stern commitment is supported by our Health and Safety policies and initiatives, as well as, a strong track record. EDPR has a zero accidents goal stated in our Health & Safety policy.

For additional information on our Human Resources strategy, please refer to the Employees Section.

G4 10 – TOTAL WORKFORCE BY EMPLOYMENT TYPE, EMPLOYMENT CONTRACT, AND REGION.

In 2015, EDPR employed 1,018 people, 20% worked at EDPR holding, 43% in the European Platform, 34% in the North American Platform and 3% in Brazil.
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The average number of contractors’ workers during the period has been 1,433 in Europe, 1,211 in North America and 285 in Brazil.

G4 LA1 – TOTAL NUMBER AND RATE OF EMPLOYEE TURNOVER BY AGE GROUP, GENDER, AND REGION

Throughout the year, EDPR hired 189 employees while 90 are no longer with the company, resulting in a turnover ratio of 14%, which is slightly higher than the previous year.
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G4 EU17 – DAYS WORKED BY CONTRACTOR AND SUBCONTRACTOR EMPLOYEES INVOLVED IN CONSTRUCTION, OPERATION AND MAINTENANCE ACTIVITIES

Contractors involved in construction, operation and maintenance activities worked 729,319 days during 2015.

G4 EU18 – PERCENTAGE OF CONTRACTOR AND SUBCONTRACTOR EMPLOYEES THAT HAVE UNDERGONE RELEVANT HEALTH AND SAFETY TRAINING

As an integral part of our health & safety strategy, we conduct several training courses and risk assessment activities according to the potential risks identified for each position within the company.

We are equally concerned with the health and safety standard of our employees and contractors. To this extent our contractors are subject to a health and safety screening when they bid to work for our company. Once the contractor is selected, they are required to present proof of having completed the required training. Almost 81% of contractors have undergone relevant health and safety training during 2015 given by EDPR. Nevertheless, is mandatory for the companies that work with EDPR to assure that all the contractors have undergone health and safety courses.

G4 LA2 – BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES, BY MAJOR OPERATIONS

As a responsible employer we offer quality employment that can be balanced with personal life. The package of benefits provided to full-time employees does not differ from that offered to part-time employees, and generally it goes beyond what is agreed in collective bargaining agreements. This benefits package includes by medical insurance, life insurance, pension plan and conciliation measures.

G4 LA3 – RETURN TO WORK AND RETENTION RATES AFTER PARENTAL LEAVE, BY GENDER

 

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EDPR recognized with ESR certificate – Socially Responsible Company – and ranked among the 50 best companies to work in Spain and Poland.

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G4 EU15 – PERCENTAGE OF EMPLOYEES ELIGIBLE TO RETIRE IN THE NEXT 5 AND 10 YEARS BROKEN DOWN BY JOB CATEGORY AND BY REGION

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G4 11 – PERCENTAGE OF EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS

 

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From EDPR’s 1,018 employees, 20% were covered by collective bargaining agreements.

Collective bargaining agreements apply to all employees working under an employment relationship with and for the account of the some companies of EDPR group, regardless of the type of contract, the professional group into which they are classified, their occupation or job. However, matters relating to the corporate organization itself, the laws of each country or even usage and custom in each country result in certain groups being expressly excluded from the scope of collective bargaining agreements.

For further information please refer to the Employee relations Section.

G4 LA4 – MINIMUM NOTICE PERIOD(S) REGARDING SIGNIFICANT OPERATIONAL CHANGES, INCLUDING WHETHER IT IS SPECIFIED IN COLLECTIVE AGREEMENTS

Per country case law, EDPR may have a minimum period which it must comply with for giving formal notice of organizational changes at the companies in the Group with an impact on employees. However, it is customary to communicate significant events to the affected groups in advance.

As an employer in the United States, EDPR complies with the Worker Adjustment and Retraining Notification (WARN) Act Guide to Advance Notice of Closings and Layoffs. Employees who have worked more than six months and 20 hours a week are required to receive 60 days’ notice in the event of closings and layoffs.

G4 LA5 – PERCENTAGE OF TOTAL WORKFORCE REPRESENTED IN FORMAL JOINT MANAGEMENT- WORKER HEALTH AND SAFETY COMMITTEES THAT HELP MONITOR AND ADVISE ON OCCUPATIONAL HEALTH AND SAFETY PROGRAMS

A significant part of our organization plays a fundamental role in the implementation of our health and safety policy. The company created health and safety committees that collect information from different operational levels and involve employees in the definition and communication of a preventive plan.

During 2015, 2.0% of our employees attended health and safety committee meetings, representing 74% of our workforce. All EDPR geographies have active health and safety committees in place.

G4 LA6 – RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND ABSENTEEISM, AND NUMBER OF WORK-RELATED FATALITIES BY REGION
pag109_14 There have been only an accident with a woman involved, which took place in Spain, with a 13 days absence

G4 LA8 – HEALTH AND SAFETY TOPICS COVERED IN FORMAL AGREEMENTS WITH TRADE UNIONS

The large majority of EDPR’s collective bargaining agreements address employees’ rights and duties of the company regarding health & safety.

G4 LA9 – AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY EMPLOYEE CATEGORY
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For a complete description of our Training and Human Resources strategy, please refer to the Development Section.

G4 LA10 – PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS

We strive to offer our total workforce with opportunities to develop professionally and assume new roles to reach the goals of the company. Employees are encouraged to take advantage of the functional and geographic mobility opportunities.

For a complete description of our Training and Human Resources strategy, please refer to the Development & Training Section.

G4 LA11 – PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS, BY GENDER

All of EDPR’s employees, regardless of their professional category, are evaluated yearly to determine their development potential by providing the most suitable training. EDPR creates tailored development plan to address specific needs. The potential assessment process is independent from performance appraisal and is based on a 360 degree evaluation model which considers feedback from oneself, peers, subordinates and the manager.

G4 LA12 – COMPOSITION OF GOVERNANCE BODIES AND BREAKDOWN OF EMPLOYEES PER EMPLOYEE CATEGORY ACCORDING TO GENDER, AGE GROUP, MINORITY GROUP MEMBERSHIP, AND OTHER INDICATORS OF DIVERSITY

A detailed description of the governance bodies can be found at the Corporate Governance Section of this report, Annex – Biographies. Please refer to LA1 and LA13 to employees related information.

G4 LA13 – RATIO OF BASIC SALARY OF MEN TO WOMEN BY EMPLOYEE CATEGORY

 

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G4 LA14 – PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING LABOUR PRACTICES CRITERIA

EDPR is governed by a strong sense of ethics and requires that its suppliers do not have conflicts with EDPR ethical standards. In this way, the acceptance of alignment with the spirit of EDPR’s Code of Ethics is required. As part of a supplier qualification process the supplier shall provide a written declaration of acceptance of the principles established in EDPR’s Code of Ethics.

Additionally, the EDP Group and EDPR, has a Procurement Manual, which includes a chapter that guides each Purchasing Department to put sustainability principles into practice, therefore when procuring and contracting goods and services EDPR appeals to all reasonable endeavours so that selected suppliers accept to comply with the UN Global Compact’s ten principles in the areas of human rights, labour, the environment and anti-corruption. Procedures to guarantee this accomplishment are defined.

80% of the purchases at Corporate, Europe and Brazil are carried out to suppliers who declare they work aligned with Global Compact criteria and EDPR’s Code of Ethics. 66% of the providers in North America also declared they work aligned with Global Compact criteria and EDPR’s Code of Ethics.

** Europe information is based on number of transactions and US information scope is for suppliers above 500k€.

For further information please refer to Suppliers Section.

G4 LA15 – SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE IMPACTS FOR LABOR PRACTICES IN THE SUPPLY CHAIN AND ACTIONS TAKEN

EDPR carried out a study to characterize its Supply Chain, based on an 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 related to suppliers.

The study allowed EDPR to determine some of actual and potential negative impacts for labor practices in the supply chain.

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 LA16 – NUMBER OF GRIEVANCES ABOUT LABOR PRACTICES FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISMS

In 2015, EDPR did not record any incident related to labour practices in any of its grievance channels.