The LBG was formed in 1994 to meet the need to create a global measurement standard to benchmark contributions and their results, as well as share best practices. Through the collective efforts of its member companies, it has steadily improved the model it uses to report contributions (monetary, work hours, in kind), and the medium- and long-term results and impacts of projects on society and the business itself.
The LBG Model allows EDP to:
> Provide evidence of the work it does in the community;
> Work with its various stakeholders to calculate the benefits to the company and the community;
> Determine the social return on the resources invested, in accordance with SROI methodology.
SROI (Social Return on Investment) methodology is an approach that measures the value created for the community by the investments made, based on the following chain: inputs, outputs, results, impacts, monetary value of impacts and SROI ratio (ratio of results over costs).
EDP:
In 2010, the EDP Group’s contributions totalled around €21 million, which was 1.03% of its EBIT. Around 93% of EDP’s contributions are monetary, and around € 2.5 million were for leverage, according to LBG. Volunteering accounted for 379 Group’s employees, corresponding to 2% of contributions and more than 10,000 hours’ work in campaigns to collect goods in the different countries, entrepreneurship classes at schools in Portugal and Brazil and support for social institutions.