Climate Change

 

The EDP Group recognizes the profound impact of climate change on the future of humanity. We acknowledge as fact the conclusions of the scientific panels that point unequivocally to the anthropogenic origin of global warming and support the recommendations of the United Nations Intergovernmental Panel on Climate Change (IPCC) to limit global warming to 2°C and achieve zero emissions of CO2 and other greenhouse gases before the end of the century.

 

 

Watch the video containing Antonio Mexia's speech in the United Nations over EDP's commitments in fighting climate change.

 

We want to provide competitively-priced energy based on the implementation of low-carbon solutions capable of ensuring sustainable economic growth.

 
For its part, EDP commits to:
 
EDP also signed up for initiatives promoted by CDP - Driving Sustainable Economies and the We Mean Business coalition. Accordingly, EDP:
 
> Adopted an internal carbon price

> Established a science-based emissions reduction target consistent with the level of decarbonization needed to limit global temperature rise to 2°C (Science Based Target). The EDP goal of reducing emissions was approved in 2017 by the Science Emission Target Initiative (SBTi)

> Discloses information on climate change as a fiduciary duty in the Annual Report, in accordance with the requirements of the Climate Change Reporting Framework (CCRF).

 

 

In order to achieve the decarbonization objectives of the Paris Agreement (COP 21), EDP considers the following fundamental:

> The existence of a global agreement binding all countries of the world to the fight against climate change;

> The direct participation of companies in the definition of individual commitments for global emissions reductions;

> The existence of an integrated global emissions trading system with clear rules, which enhances the effectiveness of the low carbon energy model and ensures the long term stability and trust between the participating countries and companies;

> The strong increase in the production of electricity from renewable sources for widespread use and meeting essential energy needs;

> Promoting the improvement of energy efficiency as a key instrument to reduce CO2 emissions;

> Increased electrification, particularly in urban development and mobility, as a key contribution to the sustainable use of energy;

> Promoting innovation with a view to making available the technologies and mechanisms that aid transition to a new low carbon energy model;

> The use of transparent measurement and reporting systems for greenhouse gas emissions, recognized by both companies and governments;

> Increasing the awareness of society to this theme and strengthening its involvement, adapted to the realities of the different countries;

> The establishment of adaptation plans that minimize the effects of climate change, particularly in the different economic sectors and on the natural capital of the planet.
 

CO2 emissions from our thermoelectric plants fell by about 12% in 2016 compared to the previous year, reaching 18.9 MtCO2 (see figure). The key drivers for this performance were the exceptional hydrological conditions, especially in Portugal (hydroelectric production index HPI = 1.33), reduced use of coal-fired power plants, increased production at gas-fired power plants (CCGT) and the operating start-up of about 1.1 GW of new capacity of renewable origin (wind and water). Specific CO2 emissions fell as a result, from 0.34 tCO2/MWh in 2015 to 0.27 tCO2/MWh in 2016.


 

EDP reports its direct (scope 1) and indirect (scope 2 and 3) emissions according to the recommendations of the GHG Protocol Corporate Accounting and Reporting Standard - see table for category of emissions. 

 


EDP had an installed renewable capacity of 18.2 GW at the end of 2016, equivalent to about 72% of the total capacity. The increase of 1.1 GW in relation to 2015, coupled with the good hydrological conditions in Portugal, led to a strong increase in production from renewable sources compared to 2015 (+24%), ensuring it contributed 65% to total production of the EDP Group.

   

Climate change originates several types of risks, in particular:

> Operational - increasing variability of wind resource and water inflows, affecting fixed assets - distribution networks (power and gas) and in conventional or renewable power plants (wind farms) - due to extreme climatic events that can lead to a stoppage of thermal power plants due to unavailability of water for cooling, etc.

> Business - includes energy market risks (volatility in prices and volumes of energy sold in the market), as well as regulatory risks related to environmental legislation, greenhouse gas emissions or schemes to support renewable energy, with an impact on the business of EDP.

To learn more about this topic, please refer to EDP's annual response to CDP - Climate Change (see here). 

In terms of mobility, EDP has promoted a number of initiatives that contribute to the sustainability of the transport sector. Sustainable mobility involves changes in behavior associated with the way people travel, as well as the use of alternative, more efficient and less polluting energy sources such as electricity and natural gas and their supply infrastructures. This translates into new business opportunities for EDP. Stand out among the initiatives developed are:

> Acquisition of vehicles with low specific CO2 emissions, including hybrids and electric vehicles;

> Promotion of the use of electric and/or natural gas vehicles;


> Use of georeferencing for route optimization in EDP Distribuição vehicles;


> Conversion of courier services into electric-based services;


> Training programs: eco-driving, off-road driving and defensive driving.

In addition to the initiatives to reduce the carbon footprint in terms of energy generation, EDP plays a very active role with its customers and the community in general, promoting the improvement of energy efficiency in end use and the consequent reduction of emissions.

The active promotion of energy efficiency is one of the top commitments of EDP's sustainability strategy and is reflected in the goal of constantly providing our customers access to products and services that contribute to greater energy efficiency in power end use, achieving accumulated savings of more than 1TWh by 2020 (compared to 2014). In commercial terms, EDP makes available to the liberalized market a set of solutions that respond to the specific needs of the various customer segments through a diversified supply of competitive and sustainable products and services that avoid emissions in the end consumption of energy.

More detailed information on the range of energy efficiency products and services provided by the various EDP Group business units can be found in the "Normative Guide to Energy Services" and in the “DSM and Energy Efficiency Initiatives 2016” document.

EDP has also been promoting adhesion by its customers to electronic billing, contributing to reduce consumption of paper, energy and consequently CO2 emissions. About 1/4 of the power and gas customers of the EDP Group had already selected electronic billing by the end of 2016.

Internally, it should be noted that EDP's administrative buildings in Portugal were subject to energy audits under the Energy Certification and Air Quality in Buildings System. In order to promote the improvement of the energy classification of these buildings, in line with national and European Community policies, EDP has installed electricity generation units for its own consumption, based on renewable technologies (mainly photovoltaic), wherever justified in technical and economic terms. By the end of 2016, EDP had already installed about 350 kW in 16 buildings, with systems for another 7 buildings planned for 2017.