A company listed on these Indexes has many advantages, both tangible and intangible. Not only does it gain public recognition of its leadership in strategic economic, environmental and social areas but there is the important recognition by investors, customers and even lawmakers. The listing in these indexes is aldo, a acknolegement of a good risk management in a long term perspective. As far as EDP is concerned, its efforts to gain admission to the Dow Jones Indexes have enabled it to delineate clear and precise goals in relation to sustainable activity. The constant assessment of the Company and the updating of the criteria have created an undeniable rigour within the Group, in all its spheres of operation. The Company's practices were assessed for admission to the Indexes and they are now concrete goals of EDP. They involve the following areas:

> Creation of value (creation of value for Shareholders; increased productivity and efficiency; commitment to Customer orientation, etc...);

> Efficient use of resources;

> Protecting the Environment and Biodiversity;

> Integrity;

> Dialogue with stakeholders (open and transparent relations with customers, investors, suppliers, employees; credible reporting of company performance in all areas);

> Management of Human Capital (implementing systems to ensure the health, safety and well-being of employees, encouraging skills development, rejecting abusive and discriminatory practice;

> Promotion of access to energy;

> Support for social development;

The Dow Jones Sustainability Index was launched in 1999. It was the first stock exchange indicator of the financial performance of leading sustainability-motivated companies worldwide. The companies listed on this index, which is linked to the New York stock exchange, are classed as the best able to create value for shareholders in the long-term. They do so by managing the risks associated with economic, environmental and social factors.

The importance investors bestow on this index is due to the growing concern of companies and economic groups in a sustainable world. Their financial performance is thus intrinsically bound up with meeting sustainability requirements that affect every area of corporate life and involve economic, social and environmental factors.

Dow Jones & Company has so far established five sustainability indexes:

> Dow Jones Sustainability World Index - This index covers the top 10% of the world's leading companies in each economic sector, in terms of  sustainable development classification.

> Dow Jones Sustainability Europe Index - As a benchmark for European sustainable investments, the Dow Jones Sustainability Europe Index (DJSI Europe) covers the leading companies in terms of sustainability in Europe. The top 20% of companies are included in this index.

> Dow Jones Sustainability North America Index, Dow Jones Sustainability Asia Pacific Index and Dow Jones Sustainability Korea Index – These Indexes cover top 20% of the companies (the top 30% in Korea’s case) in terms of sustainable development classification of each geography.

The composition of the Dow Jones Sustainability Index is arrived at on the basis of an assessment by SAM (Sustainable Asset Management). This firm ranks companies according to their compliance with sustainability criteria in three basic areas: economic, social and environmental. The weighting of each area may vary annually according to current best practices.

Dow Jones & Company, based on the SAM ranking of the companies, then compiles the indexes in terms of sustainability, by Sector and Super-Sector.

SAM uses the following sources of information:

> A rigorous questionnaire, which is completed by the companies and is specific to each sector;

> Documents such as sustainability, health and safety, social. and financial reports, and other corporate documents;

> Media and stakeholders reports and other information in the public domain;

> Personal contact with the Companies;

> Continuous monitoring of companies components of the indexes, using public information sources (e.g. Factiva).

For more information about these criteria refer to the SAM site.

Dow Jones Sustainability Indexes considered EDP the world leader in the Electric Sector. For the third year running, EDP is on Dow Jones Sustainability World Index and European Dow Jones Europe Index.

EDP is the first portuguese company to be the world leader on DJSI. The company has maintained a prominent position of leadership in the practice of Sustainable Development and is, for the first time, Best-in-Class in the Social Dimension.

EDP maintains prominent position in the Social Dimension, being the 1st time considered Best in Class, reaching 89 points (4 points more than in 2009). Noteworthy was the maintenance of the maximum score in the Human Capital Development criteria, Stakeholder Engagement and Social Reporting and Best in Class highest score without, first, the criterion Labor Practice Indicator.

In the Economic Dimension, EDP continues to be one of the best companies in the sector, keeping the score of 2009 (88 points), and being Best in Class with a maximum score (100) in the criteria Price Risk Management, Scorecards and Measurement Systems and Risk & Crisis Management.

In the Environmental Dimension, EDP scored 77 points (3 points more than last year), as a result of sustained efforts in the areas of environmental management, concerning biodiversity and climate change strategy. Noteworthy, EDP top scored on the criteria Biodiversity, Climate Strategy, and has the best score on the criterion Electricity Generation.

In a set of 22 criteria, EDP is Best-in-Class in 10 criteria, and top scored (100) in 8.

EDP on the Dow Jones Sustainability Indexes is recognition of the commitment towards sustainable development embodied in continuous improvement of Corporate Governance practices, the strategy for growth in renewable energies, the use of more efficient production technologies, a permanent commitment to the development of Human Resources and close collaboration with our Stakeholders. 

 EDP was selected to form part of the Dow Jones World and STOXX Sustainability Indices for the second year running, making it one of the 13 best electricity companies in the world and one of the 7 best in Europe.

EDP was selected to form part of the Dow Jones World and STOXX Sustainability Indices for the second year running, making it one of the 13 best electricity companies in the world and one of the 7 best in Europe. These indices are subject to annual review. The evaluation process, which identifies and classifies best practices in the area of sustainable development, took place from June to August 2009, and the list of companies selected for the various indices was announced on 3 September.

EDP improved its points score substantially, with an increase of around 9% in relation to 2008, closing the gap on the new world leader in the sector to only 2 percentage points. EDP achieved 100% in 6 of the 21 criteria under evaluation: Risk Management, Price Risk Control, Score Card Systems, Stakeholder Involvement, Human Capital Development and Environmental Reporting. EDP was also considered the best company for Biodiversity (98%) and Electricity Generation (92%). The best practices are evaluated under 21 criteria, divided into the economic, environmental and social domains, and use both information supplied by the applicant and information that is publicly available.

The list of companies included in the indices is selected from a total of around 2,500 (including, this year, 6 Portuguese companies), from 51 countries and 57 sectors of activity. Around 600 companies from 17 countries and 49 sectors of activity applied to be listed on the Dow Jones STOXX Sustainability Index. EDP's continued inclusion as a member of these indices provides fundamental recognition of the improvements to its sustainable development practices and their growing incorporation into the Group's corporate culture.