sustainability > Stakeholders > Strategic Approach

Strategic Approach

EDP believes that the engagement of stakeholders in the governance model is more than the expression of good business practice – it creates and distributes value among all stakeholders, and thus contributes to a more cohesive society and acts as a lever of competitiveness impacting on the Company's performance.

The objectives of the Stakeholder Management strategy of the EDP Group are to:

> Strengthen relationships of trust, transparency and proximity that the EDP Group establishes and wishes to maintain with all its stakeholders;

Align the complexity of stakeholder management with the strategy of the EDP Group;

Identify, explore and/or develop new opportunities for value creation, whether through dialogue with the various business areas and units of the EDP Group, or by stimulating cross-company projects with stakeholders;

> Improving society's perception of the EDP Group;

> Deepen knowledge of the environment in which the Group operates and ensure greater control and minimization of the various business risks.

To achieve the proposed objectives, the EDP Group's stakeholder engagement strategy is divided into five action areas:

Identification and mapping of stakeholders:
The process of stakeholder identification is based on from two distinct and complementary approaches: Importance to the Company, based on control and minimization of the various business risks, including reputational, operational, regulatory and commercial risks; Assessment of the impacts that the Company's business has on specific segments, measured on the basis of local consultations and, complementarily, from external contacts.

Stakeholder consultation and Analysis of Significant Issues:
The determination of the material issues for EDP took place in 2013, based on an Accountability methodology which provides a clear and balanced analysis of the information gathered both internally and via the various stakeholder consultation channels.

EDP's response strategy to the issues identified:
The responses to the issues identified by stakeholders are constructed after listening to, identifying and managing their expectations in order to develop targeted communication strategies that enable us to anticipate critical issues and begin preparing for tomorrow today.

General alignment of responses to stakeholders with the Group's strategy and objectives:
The Corporate and Stakeholder Relations Department of the EDP Group manages the flow of information and communication of strategic messages in a coordinated and structured way, acting jointly and in a coordinated manner with the various Business Units and Corporate Centre Departments, thereby enhancing the effectiveness of the strategic relationship with various stakeholders of the EDP Group.