G4 DISCLOUSURE ON MANAGEMENT APPROACH

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.

Land leases and taxes are a large contribution to the yearly budget for the municipalities where it is present. In addition, EDPR devoted 1.2 million Euros in social projects to support education and community related activities and total tax contribution to the public finances amounts to €167m in year 2015.

Additional information on the Communities Section of this report and in our website www.edpr.com.

 

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G4 SO1 – PERCENTAGE OF OPERATIONS WITH IMPLEMENTED LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS, AND DEVELOPMENT PROGRAMS

We are well aware of the impact that our activity has in the local communities where we develop our wind farms and how we can maximize those potential benefits for the company and the inhabitants of the surrounding areas through an open communication with our stakeholders. Therefore, we establish a relationship of trust and collaboration with the communities where we have presence from the very initial stages of our projects, organizing informative sessions, we hold open dialogs with these communities, to explain the benefits of wind energy. We also organize volunteering and sport activities to promote a sustainable development of the society. Our business generates further indirect positive impacts in the areas where we are present, through local hiring and procurement and the development of infrastructures and the payment of taxes and rents.

Additional information on the Community Engagement Section of this report and in our website www.edpr.com.

 

G4 SO2 – OPERATIONS WITH SIGNIFICANT ACTUAL OR POTENTIAL NEGATIVE IMPACTS ON LOCAL COMMUNITIES

Wind farm energy is a long lasting economic development driver for the municipalities where it is present. EDPR performance of studies assessing the impact on the environment and the community before the construction, this studies include the most significant issues for the affected areas such as emissions, wastes, changes to land use, changes in landscape, health and safety impacts, affected economic activities, impacts on infrastructure, existence of historical and cultural heritage, presence of indigenous communities, and the need to displace local populations.

During operation, grievance mechanisms are also available to ensure that suggestions or complaints are properly recorded and addressed. This allows us not only to solve the complaints but to introduce improvements in our processes. A good example is the way we handle the complaints related to possible interferences with TV signal. We have set a procedure involving the town halls to facilitate and speed up the collection of these complaints as soon as they arise, a proper analysis and communication with the plaintiff and a fast satisfactory resolution.

EDPR has different programs in place to assess and manage the impact on communities, and to maximize the shared value of our projects.

Additional information on the Community Engagement Section of this report and in our website www.edpr.com.

G4 SO3 – TOTAL NUMBER AND PERCENTAGE OF OPERATIONS ASSESSED FOR RISKS RELATED TO CORRUPTION AND THE SIGNIFICANT RISKS IDENTIFIED

EDPR analyses all the new markets were enters operations through a Market overview. This study also evaluates the corruption risk.

EDPR during 2015, implemented an Anti-Bribery Policy of application to all EDPR Group. This Anti-Corruption Policy involves a series of new procedures regarding the relationships of EDPR employees with external parties, namely the approval of certain actions regarding hospitality to and from external parties, charitable donations, and sponsorships.

Additional information on the Code of Ethics and the Ethics Channel can be found at Section 5 Corporate Governance Section, C. II. Reporting Of Irregularities or visit our ethics information on the corporate governance section, in our website, www.edpr.com.

G4 SO4 – COMMUNICATION AND TRAINING ON ANTI- CORRUPTION POLICIES AND PROCEDURES

In order to ensure compliance with the standards of Anti-bribery Regulation in every geography where EDPR operates, the Company has implemented an Anti-Bribery Policy of application to all EDPR Group during 2015.

This Anti-Corruption Policy involves a series of new procedures regarding the relationships of EDPR employees with external parties, namely the approval of certain actions regarding hospitality to and from external parties, charitable donations, and sponsorships.

For further information about the Code of Ethics and the Ethics Channel please visit the Section 5 Corporate Governance, C.II. Reporting Of Irregularities or visit our ethics information on the corporate governance section, in our website, www.edpr.com. Moreover, additional information is detailed in the Integrity and ethics section.

G4 SO5 – CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN

EDPR has no knowledge of any corruption-related incidents recorded during 2015.
Moreover, the company has internal procedures to monitor compliance with the Code of Ethics and defines actions to be taken in case of incidents.

For further information about the Code of Ethics and the Ethics Channel please visit the Section 5 Corporate Governance, C.II. Reporting Of Irregularities or visit our ethics information on the corporate governance section, in our website, www.edpr.com. Moreover, additional information is detailed in the Integrity and ethics section.

G4 SO6 -TOTAL VALUE OF FINANCIAL AND IN-KIND CONTRIBUTIONS TO POLITICAL PARTIES, POLITICIANS, AND RELATED INSTITUTIONS BY COUNTRY

EDPR made no contributions to political parties in 2015.

G4 SO7 – TOTAL NUMBER OF LEGAL ACTIONS FOR ANTI- COMPETITIVE BEHAVIOUR, ANTI-TRUST, AND MONOPOLY PRACTICES AND THEIR OUTCOMES

EDPR has no knowledge of any legal actions for anti-competitive behaviour, anti-trust or monopoly practices recorded during 2015.

G4 SO8 – MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL NUMBER OF NON-MONETARY SANCTIONS FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS

During 2015, the company received a total penalty of 240,246 euros mainly tax- related.

G4 SO9 – PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING CRITERIA FOR IMPACTS ON SOCIETY

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 and Europe are carried out to suppliers who declare they work aligned with Global Compact criteria and EDPRR’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 S10 – SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE IMPACTS ON SOCIETY 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 the following results:

  • More than 20 000* employment associated to EDPR’s Supply Chain
  • More than 735* Million EUR gross value added associated to EDPR’s 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.

Additional information on Suppliers Section.

G4 SO11 – NUMBER OF GRIEVANCES ABOUT IMPACTS ON SOCIETY FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISMS (G4-27)

EDPR has registered 94 complains during 2015 regarding society impacts. 62 in France and 19 in the US due to related to possible interferences with TV signal. All of them with related cost corrective actions valuated in 10,628 euros.

Additional information on the Whistleblowing Channel and the Ethics Channel can be found at Section 5 Corporate Governance, C. II. Reporting Of Irregularities or visit our ethics information on the corporate governance section, in our website, www.edpr.com. Moreover, additional information is detailed in the Integrity and ethics Section.