1. Learn about Transparency in the Supply Chain Engaging with Suppliers for Sustained Success José Figueiredo Soares Corporate Sustainability and Environment Office EDP Energias de Portugal, SA

3. Learn about Transparency in the Supply Chain Trust of shareholders, customers, suppliers and other stakeholders; Excellence in the way we implement; Initiative demonstrated through behavior and attitude of our people; Innovation with the objective of creating value within the various areas in which we operate Sustainability aiming at improving the quality of life of current and future generations. In brief: A global energy providing company, leader in creating value, innovation and sustainability Vision Values

4. In brief (2009, aprox.) : 12 096 employees 20 624 MW installed capacity 76 590 GWh distributed energy 10,9 million clients 12,2 billion€ turnover 3,3 billion€ EBITDA

5. Learn about Transparency in the Supply Chain Implementing a strategy: Steered Growth Greater Efficiency Controlled Risk

6. Learn about Transparency in the Supply Chain Strategic guidelines 2010-2012, concerning Sustainability: Improve integration of sustainability and environmental management into Group’s management and control systems Identify best practices and promote internal and external partnerships Improve internal skills on environmental responsibility and risk management Develop a corporate culture of excellence in sustainability performance Improve knowledge on stakeholders’ expectations and assess Group's performance vis a vis those expectations

7. Learn about Transparency in the Supply Chain Summary of 2009 performance indicators: Direct economic value generated Economic value distributed

8. Summary of 2009 performance indicators:

9. Summary of 2009 performance indicators: Tf total 2006 2007 2008 2009

10. Environmental Dimension ( Weight: 36%) Summary of 2009 performance indicators: +4% EDP Sustainability Index (points) +6% ~0% Economic Dimension ( Weight: 33%) +7% Social Dimension ( Weight: 31%)

12. Building Trust by improving performance reporting 1997 GRI Guidelines adoption 2001 2002 Institutional, Corporate Governance and Sustainability Report National award National award National award National award 1º Report on Environmental Performance 1º Sustainability Report 2003 2004 2008 2007 2006 2005 (…) 2009

13. Building Trust by measuring, benchmarking and disclosing management systems performance For the second consecutive year, EDP was rated #1 in Portugal, by Accountability Rating Portugal, Sair da Casca . In 2009, EDP was also rated #2 in the Iberian Peninsula outperforming on “Management and Governance Systems”. EDP’s CSR practices are regularly assessed internationally

14. Building Trust by measuring, benchmarking and disclosing management systems performance For the first time, in 2009, EDP disclosed its CO2 management approach and results under CDP project. EDP scored #17 global, #8 Europe and #1 Portugal. 100% assessment in “scopes 1 and 2 reporting”; “ energy use reporting” and “public reporting”.

16. Deepening stakeholders’ engagement: The materiality matrix

19. HC Energia EDP EDP Gás Energias do Brasil Naturgás EDPR - EU Horizon Supplier Managing the supply chain: EDP has about 30 000 suppliers, 11 000 of which are included in its SRM (suppliers relationship management) system, due to their relevance to the business. SRF Suppliers Registration System Sinergie SAP SQF Supliers Qualification System

20. Managing the supply chain: distinction between strategic and non strategic suppliers, based on the value of the contracts involved, technical or commercial particularities of certain contracts/markets or the relevance of the product/service to be supplied to EDP's strategical or operational objectives (including sustainability in a broad sense). Non relevant commodities Strategic relevance Nível Básico “ Repro” level Technical complexity Basic level more information in http://www.edp.pt/en/fornecedores/Pages/HPFornecedores.aspx Services and products with strategic relevance or technical specificities . High value contracts.

21. Learn about Transparency in the Supply Chain Building Trust within the supply chain: In 2009, 46% of the suppliers in Portugal, Spain and Brazil with contracts over € 75 k, were registered in EDP’s SRF. A significant part of them already report the existence of certified management systems 59 % 28 % 28 % Certified management systems ISO 9001 ISO 14001 OHSAS 18001

22. Building Trust within the supply chain: Given the continuity of EDP’s presence in the markets and the volumes and levels of technicity of the services and products purchased, influences within the supply chain are bidirectional and significant. Among them: etc.). EDP's capacity to promote/enforce good practices, both social and environmental, and to drive sustained social development and economic growth; Opportunities to cooperate on technological, product and market innovation; Impact that strategic suppliers have on EDP's sustainability performance (eg. legal compliance, service quality, health&safety, environmental management, etc.).

23. After joining GRI’s GANTSCh initiative, EDP launched its CValor Project, and invited its suppliers to participate. Five of them answered positively and received training on measuring and reporting on their sustainability performance using the GRI G3 Guidelines. Building Trust within the supply chain: Transparency in the Supply Chain: EDP’s CValor Project

25. Learn about Transparency in the Supply Chain Building trust within the supply chain: Considering the mean maturity level of the participants’ management systems, project duration and structure (number and frequency of workshops) were adequate. Although, in order to maximize possible benefits, early participation of suppliers representatives should be encouraged by the support team. With some exceptions, we observed a slow gradual development in the initial stages of the project. Also, the number and the hierarchy involved, were not always enough to provide a guarantee of continuity and integration of sustainability reporting. Nevertheless, despite the motivations of the participants being rather different, the overall quality of the work was of very good standard. Evaluation of the preliminary results :

26. Learn about Transparency in the Supply Chain Conclusion: In conclusion, GANTSCh/CValor Project was a positive step forward in adding value to EDP, concerning its engagement with suppliers, as part of its global stakeholder engagement strategy. Initial expectations were entirely met and this provides us with renewed confidence to hold a second edition of this project. For that purpose EDP is already actively looking for interested parties among its suppliers.

27. Learn about Transparency in the Supply Chain To get detailed information: www.edp.pt

28. Learn about Transparency in the Supply Chain Thank you for your attention! [email_address]