This year, EDP publishes only one report separated in 5 different sections: 

> EDP, which includes an introduction to the company. There is a description of the setting and markets in which the company operates, including a summary of the main financial, economic, operational, environmental and social performance indicators. This section includes the strategic plan for 2009-2012;

> Business, which includes a summary description of the Group’s operational performance, organised by business type (electricity and gas) and market;

> Contribution to Sustainability, arranged to meet the expectations of the company’s major stakeholders;

> Corporate Governance Report, which is organised according to the Securities Market Commission (CMVM) Regulation no. 1/2007;

> Financial Information, with an analysis of the company’s financial performance and financial statements presented in accordance with current accounting standards for financial reporting.

This report aims to provide a brief description of the company's business performance and good sustainability practices.

This publication also seeks to comply with CMVM Regulation no. 1/2007, the Company Code, the Corporate Governance Code and the Regulation on Duties of Information (no. 5/2008).

The basic criteria used to select the information reported by EDP and assess its significance arise from:

> its impact on the financial results;

> its contribution to strategy implementation and business sustainability;

> the environmental and social relevance of the business; and

> the degree to which it responds to the expectations of the different parties interested in the Group's performance.

Using a range of support material, the report is thus concerned with information:

> deemed materially relevant in terms of the Internal Control of Financial Reporting (ICOFR) system;

> relating to the management of significant environmental issues, as identified through the environmental management systems implemented across the Group;

> resulting from publicly assumed commitments to investors, customers or communities in which EDP operates;

> that may be of particular interest to other stakeholders, including: public sector authorities, the Securities Market Commission (CMVM) and other regulators; ethical and socially responsible investors; and organisations representing the interests of various sectors affected by the Group's activity. All of these stakeholders present the company with regular requests for information of an economic, environmental and social nature. 

Commitments assumed by the Group voluntarily are also considered for the purposes of external reporting, such as those relating to its participation in the Global Compact and to issues of integrity and respect for human rights.

During 2009, work was also done to identify areas for improvement in terms of relations with stakeholders. This included mapping out a full range of environmental, social and economic issues and considering their importance for the company and their relevance to its business. This work was carried out within the framework provided by AccountAbility’s AA1000 standard, as described in the table below:
 

In 2004, EDP joined the Global Compact initiative, promoted by former UN Secretary-General Koffi Annan. Since this time, our progress in applying the 10 Global Compact principles has been described in this report.
 

The report was prepared with the Global Reporting Initiative in mind: Supplement for the Electricity Sector. EDP aims to continue improving its report until such a time as it achieves compliance.

A simplified table describing this process is presented in the paper version, with a more detailed breakdown accessible online.

The EDP organisation chart (page 28-29 of the Institutional and Sustainability Report) displays the range of companies covered by the annual report.

The same consolidation criteria were used as in 2007. The following accounting methods were adopted for the consolidation of accounts:

> Full consolidation method: where the parent company holds the majority of voting rights (% control) in the subsidiary, either directly or indirectly. The results of such subsidiaries are reported at 100%.

> Proportional consolidation method: where a company included in the accounting consolidation perimeter runs another company together with one or more companies not included in the perimeter. In this case, only the results corresponding to the percentage stake in the jointly-controlled company are reported.

At 31 December 2009, the Naturgas Group acquired the following companies, which were fully consolidated: Gas Natural Murcia SDG, SA; Gas Natural Cantabria SDG, SA; GEM Suministro Gas 1, S.L.; GEM Suministro Sur 1, S.L.; GEM Servicios Comunes, S.L.

Also in 2009, Hidroeléctrica del Cantábrico, SA acquired a 50% stake in CIDE HC Energia, SA, consolidating it using the proportional method. The remaining companies consolidated using the proportional method until 31 December 2009 are listed in Note 52 to the financial statements in the financial report.

Operational information (number of employees, kilometres of grid, number of customers) was included for the new company acquired by the Group: Gás Natural.

The checks were conducted by an independent organisation, KPMG Advisory, Consultores de Gestão, Lda, which was selected in 2008 on the basis of an invitation to tender in Portugal, submitted to four companies of recognised experience in the field.