ESG Report 9M21

ESG REPORT 9M21

LEADING ON ESG MATTERS AT EDP

Key Highlights

At EDP Group, we remain committed to transparency and the reporting of non-financial metrics and ESG indicators. These have become business imperatives. As regulation evolves, we will continue to adopt and promote the most recognized reporting standards and frameworks. At EDP we are already reporting according to GRI, SASB, TCFD, and other metrics.

Besides our 12 strategic sustainability objectives, which aim to contribute towards the realisation of 9 out of the 17 UN Sustainable Development Goals (SDGs) by 2030, we have also engaged with the UN Global Compact CFO Taskforce. This initiative aims to help companies from any sector or geography re-shape the financing of their strategies to contribute to the SDGs and to help create a vibrant market for sustainability-related securities. On the 20th September 2021, the CFO Taskforce announced an initial commitment to invest more than $500 billion over the next five years towards the Sustainable Development Goals.

The full alignment of EDP strategy with the energy transition and best-practice ESG reporting enables us to finance growth with green and cost competitive funding. This quarter, EDP Group seized on the increasing appetite for these instruments, and issued €1.25 billion in two Green hybrid bonds, bringing us closer to our goal of green funding representing 50% of total funding by 2025.

The stakes have never been higher. It's time to go faster and further in the fight against climate change. Through our strategic goals and fast growth EDP Group continues to reinforce its market status as a

leader in the energy transition. Our continued investments in renewables, along with enhanced reporting and transparency, underline our ambition of "Changing Tomorrow Now".

For more information on our sustainability strategy, please see the latest information here. Finally, we were delighted to hold our first ESG Day in October, which provided the opportunity for open and transparent dialogue with the investment community on a range of ESG topics.

"At EDP we are passionately committed to the Energy Transition, and through this central mission have a positive impact in the World."

Environment

At EDP Group, we are proud to be at the forefront of the deployment of new technologies to accelerate the decarbonization of electricity systems and promote the globalization of access to clean energy. This quarter, we are proud to have joined several ambitious and global alliances in the pursuit of this common aim. In September, we joined the Global Compact for 24/7 Carbon-Free Energy which aims for every kilowatt-hour of electricity consumption to be met with carbon-free electricity sources.

Separately, EDP also joined the Global Alliance for Sustainable Energy, a joint response to the urgent need to decarbonize the global economy while ensuring its sustainability from an environmental, social and governance perspective.

Social

In October, we announced our most recent Health and Safety program "Playitsafe" with the objective of eradicating accidents and personal harm. This initiative shows our commitment to providing a safe workplace for all of our 12,000 employees, as well as our ambition to fulfil our SDGs targets. Also worth highlighting, in October, EDP Renewables joined the "Empowering Women's Talent" program for the development of female talent promoted by Equipos & Talento. With the aim of promoting female empowerment and leadership, this program helps companies to learn, share, communicate and inspire about gender diversity.

Governance

EDP is focused on delivering an ESG strategy which has governance at its heart. In July, EDP was a recipient of the Most Sustainable Company in the Utilities Industry at the World Finance Sustainability Award 2021 due to its contribution to the net-zero economy and the alignment between ESG issues and its long-term corporate strategy. Aligned with EDP's 2021-2025 business plan, the remuneration committee of the General and Supervisory Board established that 20% of the Executive Board of Directors short and long-term variable remuneration depends on ESG KPIs.

As regulation evolves, we will continue to be proactive in the adoption of the most recognized reporting standards. The indicators included in this report are selected based on their relevance to investor 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).

Rui Teixeira

Executive Board Member

ESG Report 9M21

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ESG PERFORMANCE AT A GLANCE

TARGET

INDICATOR	UNIT	9M21	9M20	%	2025	2030

ENVIRONMENT

SOCIAL

GOVERNANCE

Revenues aligned with EU taxonomy1	%	66%	58%	14%	70%	>80%
Scope 1 & 2 Emissions Intensity	gCO2/kWh	167	134	25%	~100	0
Renewables Generation	%	76%	74%	3%	85%	100%
Coal Installed Capacity	%	8%	12%	-31%	0	0
Total Waste	kt	242	186	30	118	30

Employee Engagement (top tier company)2
Female Overall	%	26.4%	25.9%	2%	30%	35%
Accident Frequency Rate3	Fr	1.81	1.51	20%	1.55	<1

Female on Leadership	%	26.0%	25.3%	3%	30%	35%
ESG & equity linked compensation for Top Management4	.				Keep advanced5
Cybersecurity	bitsight rating	810	780	4%
Top quartile in ESG rating Performance6	.

Revenues aligned with the EU Taxonomy increased to 66% as we continue to accelerate growth and invest in the Energy Transition, with total Gross Investments increasing by 15% YoY, amounting to €2.7 billion in the 9M21, 94% of which in Renewables and Networks.

Renewables represented 76% of electricity generated by EDP in the 9M21, as we continue to ramp-uprenewables deployment, with 2.6 GW of wind and solar capacity added in the last 12 months.

SFDR indicator

Specific CO2 emissions increase in the 9M21, 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 1.81 in the 9M21, in a very unfortunate quarter, in particular within our service providers. EDP continues determined to strengthen the culture of Occupational Health and Safety, having started a new program, "Playitsafe", to raise awareness of the importance of building and adopting safe habits at EDP.

In the 9M21, females representation stood at 26% of EDP's workforce representing +3% increase versus the comparable period.

1. Value for 9M20 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. Applicable to Board of Directors and top management; 5. >= 740; 6. Includes DJSI, FTSE4Good, MSCI and Sustainalytics.

ESG Report 9M21

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OPERATIONAL HIGHLIGHTS COMMITTED TO A RENEWABLES PATH

Installed Capacity (MW)1,2

26,849 MW

24,429 MW

-10 %

Renewables	74%	79%

Coal	14%		12%
Gas	12%		8%
Other		1%		1%
		9M20	9M21

Electricity Generation (GWh)

45,890 GWh	43,166 GWh

Hydro Coefficient (%)	9M21	9M20	%
Portugal	113%	97%	16%
Spain	89%	100%	-11%
Brazil 3	67%	85%	-21%
Renewables Index4(%)	-5%	-6%	-8%
Electricity distributed (GWh)
Portugal	33 297	32 665	2%
Spain	10 603	5 562	91%
Brazil	19 501	18 048	8%

Clients connected - supply (#th)

Portugal	6 355	6 306	1%
Spain	1 375	670	105%
Brazil	3 651	3 574	2%

Renewables 74%

76%

Total Energy consumption	28 301	25 062	13%
Total Renewable consumption (GWh)	1 147	1 151	0%
Fuel	4	3	14%
Electricity	1 144	1 148	0%

Coal	17%		10%
Gas	7%		12%
Other		2%		2%
		9M20	9M21

Self-generatednon-fuel renewable energy	1 097	1 111	-1%
Total Non-Renewable consumption	27 154	23 911	14%
Fuel	24 263	22 958	6%
Electricity	2 890	953	203%
Energy consumption intensity (MJ/€)	9	9	-4%

SFDR indicator

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).

ESG Report 9M21

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NEW SERVICES HIGHLIGHTS COMMITTED TO DRIVE NEW CLIENT SOLUTIONS AND SMARTER NETWORKS

Energy Efficiency	UNIT	9Q21	9Q20	%
Energy Services Revenues / Turnover 2	%	9,4%	8,1%	17%
Energy Efficiency Services Revenues	€ m	270	172	57%
Distributed generation
Distributed solar (As a service & Transactional)6	MW	217	61	256%
Portugal	MW	54	29	83%
Spain	MW	28	8	244%
Brazil	MW	33	22	47%
US & Other	MW	102	n.a.
E-mobility
Light fleet electrification	%	12%	10%	19%
Electric charging points 3	#	2 906	1 320	120 %
Clients with electric mobility solutions	# th	38 747	15 187	155 %
Smart Meters
Portugal	# m	3.8	3.1	24%
Spain	# m	1.4	0.7	104%
Client satisfaction 1	%	n.a.	79%
Electricity Grid Losses
Portugal	%	8.4%	8,8%	-4%
Spain	%	4.4%	3.5%	25%
Brazil (São Paulo)	%	8.3%	8.6%	-4%
Brazil (Espírito Santo)	%	12.7%	13.0%	-2%
Customers with Sustainable Services 4	%	14.9%	n.a.
CO2 savings downstream 1,5	ktCO2	n.a.	1 413

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 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; 6. Total capacity contracted YTD, including inorganic capacity.

ESG Report 9M21

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