EDP Energias de Portugal S A : ESG Report 1H21

ESG REPORT 1H21

Leading on ESG matters at EDP

Key Highlights

This month marks the 45th anniversary of EDP Group. Almost half a century ago, EDP embarked on a journey which has seen the company radically transformed. EDP began as a domestic utility in Portugal, now we are a truly global business leading the energy transition with a footprint in 4 continents and 22 countries.

EDP entered the renewables market ahead of time, two decades ago. Our heritage has continued to forge an ambitious path, setting significant decarbonisation targets and committing to invest € 24 billion in the energy transition over the next five years. By 2030 EDP will be 100% green. We have a decade of experience engaging with our investors and other stakeholders on our commitment and approach to ESG. We know that ESG reporting can have a meaningful impact on the environment and the communities where we operate, and on our bottom line.

We have recently defined a set of 12 strategic sustainability objectives for 2030. These support EDP's ambition as leader in the transition to a low- carbon economy, as well as our firm commitment to protect the environment with a positive societal impact. This strategy is monitored by a set of indicators that measure our progress towards implementing 9 of the 17 Sustainable Development Goals of the United Nations Agenda for 2030, to which we are fully committed.

This is the decade of decisive action for EDP and our motto "Changing Tomorrow Now" will guide our ambition in the coming years. We look forward to seeing the company grow as we create value and contribute to a fairer, more inclusive and sustainable planet.

For more information on our sustainability strategy please see our latest informationhere.

"Sustainability is at the top of the boardroom agenda. We proudly deliver on our ESG commitments and our mission to lead the energy transition"

Environment

I am very pleased to share that the Science Based Target initiative (SBTi) has recognised EDP's 98% target reduction of scope 1 and 2 GHG emissions per TWh by 2030 compared to 2015 levels, and 50% absolute reduction of scope 3 GHG emissions over the same timeframe. This means our targets are in line with climate science requirements towards limiting global warming to 1.5ºC, highlighting the strength of our commitment to become carbon neutral by 2030.

Social
In June, as we celebrated Diversity month at EDP Group,
we committed to joining The Valuable 500, a global
movement to promote and underline the importance of	Miguel Setas - Executive Board Member
disability inclusion within leading companies around the
world to generate systemic change and unlock the
business, social and economic value of people living with
disabilities. This is an important step for EDP Group
because we see diversity as a source of innovation,
bringing us one step closer to our communities and our
stakeholders.
Governance
hihi
At EDP group, we continue to streamline our corporate
governance structure. We reduced from 5 to 4 the
number of specialized committees at the General
Supervisory Board level. We have improved our
approach to ethics in line with best practice and
international standards and our Ethics Commission is
now overseen by the Chairman of the General and
Supervisory Board, a role previously held at the
Executive Board of Directors level.

	As the sector evolves towards further standardised adoption of sustainability reporting, so will progress in this performance report. The indicators included here are selected on relevance to investor
ESG Report 1H21	communities and our business operations. For more sustainability information please see full-year EDP Sustainability report here.
Our annual sustainability report follows other voluntary regulatory reporting frameworks, namely the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards
	Board (SASB) and the Portuguese Securities Market Commission (CMVM).

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ESG Performance at a Glance

ENVIRONMENT

Indicator

Revenues aligned with EU taxonomy 1

Scope 1 & 2 Emissions Intensity

Renewables Generation

Coal Installed Capacity

Total Waste

Unit	1H21	1H20	∆ %	Target	Target
2025	2030
%	69%	58%	19%	70%	>80%
gCO2/kWh	131	111	18%	~100	0	○
%	81%	80%	0%	85%	100%	○
%	8%	12%	-30%	0	0	○
kt	123	94	30%	118	30

SOCIAL

GOVERNANCE

Employee Engagement (top tier company) 2 Female Overall

Accident Frequency Rate 3

Female on Leadership

ESG & equity linked compensation for Top Management 4

Cybersecurity

Top quartile in ESG rating Performance 6

	√	√		√	√
%	26,0%	25,8%	1%	30%	35%
Fr	1,78	1,26	41%	1,55	<1
%	25,4%	25,2%	1%	30%	35%
	√	√		√ √	√ √
bitsight	800	700	14%	Keep advanced 5
rating
	√	√		√	√

Revenues aligned with the EU Taxonomy increased to 69% as we continue to accelerate growth and invest in the Energy Transition, with total Gross Investments increasing by 29% YoY, amounting to 1.6 billion euros in the 1H21, 94% of which in Renewables and Networks.

Renewables represented 81% of electricity generated by EDP in the 1H21, as we continue to ramp-uprenewables deployment, with 2.1 GW gross capacity added YoY, of which 0.7 GW added YTD.

Specific CO2 emissions increase in the 1H21, is related to the increase of production in Pecém in Brazil, due to adverse hydrology in the Northeast of Brazil in this period, given that Brazil is experiencing the worst in hydrology crisis for the past 91 years.

Similarly to last quarter, total waste increased by 30% YoY, mainly explained by the reduced activity of Pecém's power plant in 2020, which was completely idle between April and August, operating only partially in March and September of 2020.

Accident Frequency rate increased to 1.78 in the 1H21, in a very unfortunate quarter, in particular within our service providers. EDP continues determined to strengthen the culture of Occupational Health and Safety, by developing awareness, deepening willingness and making available the resources to improve health and safety.

In the 1H21, females representation stood at 26% of EDP's workforce representing +1% increase versus the comparable period.

• SFDR indicator

1. Value for 1H20 is an annual measure; 2. Above the high performing norm, including results of surveys done to more than 875,000 employees in 50 high performing organizations and is based on company financial performance and engagement and enablement scores. 3. Number of accidents at work with absence/fatalities, per million hours worked (including employees and contractors); 4.

ESG Report 1H21 Applicable to Board of Directors and top management; 5. >= 740; 6. Includes DJSI, FTSE4Good, MSCI and Sustainalytics.

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Operational Highlights

Committed to a renewables path

					Unit	1H21		1H20	∆ %
Installed Capacity (MW) 1,2 ○			Hydro Coefficient	%
				Portugal		111%		96%	16%
				Spain		100%		100%	0%
				Brazil 3		70%	86%	-19%
				Renewables Index 4
				%	-5%	-6%	-20%
				Electricity distributed	GWh
				Portugal		22.180		21.477	3%
				Spain		7.083		3.752	89%
				Brazil		13.055	11.828	10%
				Clients connected	# th
				Portugal		6.336		6.300	1%
Electricity Generation (GWh) ○			Spain		1.373		669	105%
				Brazil		3.628	3.538	3%
				Total Energy consumption
				GWh	13.871		○
				Total Renewable consumption		913		○
				Fuel		2		○
				Electricity		911		○
				Self-generatednon-fuel renewable energy	876		○
				Total Non-Renewable consumption		12.958		○
				Fuel		12.394		○
				Electricity		564		○
				Energy consumption intensity	MJ/€	8		○

	○ SFDR indicator
ESG Report 1H21	1. EBITDA MW; 2. Other includes Nuclear, Cogeneration & Waste; 3. Brazil hydro coefficient refers to ENA index; 4. Renewables Index (vs. LT avg. Gross Capacity Factor).

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New Services Highlights

Committed to drive new client solutions and smarter networks

	Unit	1H21		1H20	∆ %
Energy Efficiency
Energy Services Revenues / Turnover 2
%	8,1%		8,2%	-1%
Energy Efficiency Services Revenues	€ m	116	118	-2%
Distributed generation
Distributed solar (As a service & Transactional)	MW	280		113	147%
Portugal	MW	121		77	57%
Spain	MW	15		8	88%
Brazil	MW	51	28	81%
US & Other	MW	93		n.a.
E-mobility
Light fleet electrification	%	12%		9%	38%
Electric charging points 3	#	2.556		1.073	138%
Clients with electric mobility solutions	# th	33.200	14.400	131%
Smart Meters
Portugal	# m	3,6		2,9	24%
Spain	# m	1,4	0,7	104%
Client satisfaction 1	%	n.a.	79%
Electricity Grid Losses
Portugal	%	8,6%		9,0%	-5%
Spain	%	5,0%	3,8%	30%
Brazil
São Paulo	%	8,3%		8,3%	0%
Espírito Santo	%	12,9%	12,8%	0%
				n.a.
Customers with Sustainable Services 4	%	13,2%
CO2 savings downstream 1,5	ktCO2	n.a.		1.413

X% Value Added Services

Penetration by 2030

	1. Annual Indicators refer to 2020YE; 2. Energy service: Services provided under energy supply, installation of more efficient and/or building retrofit, and sustainable mobility, which generate
ESG Report 1H21	revenues for the company; 3. Includes public, private and charging points inside EDP facilities; 4. Sustainability Services concept aligned with EU taxonomy.	Excludes Health Insurance, Fatura
Segura and Gas Certification. Includes only B2C electricity clients; 5. CO2 avoided by carrying out efficiency improvement measures that lead to a reduction in	customer consumption, as well as
	measures to replace energy sources with other less CO2-emitting ones, namely replacing fossil fossils with renewable energy sources or sustainable mobility.

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