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EDP recognized as the most sustainable electric utility in the world by S&P Global CSA

Thursday 30, November 2023
2 min reading time
Mohave Solar
  • This is EDP's third recognition as the world's most sustainable electric utility in
    ten years.
  • EDP scored as “best in class” in the categories of climate strategy, ethics, innovation, and market opportunities.
  • EDP will participate in COP28, in Dubai, to share its insights on the energy transition and the strategy to tackle climate change at a global scale.

Singapore, 30 November 2023EDP has strengthened its leadership position by achieving the highest performance in the S&P Corporate Sustainability Assessment (CSA) Scores 2023 in a list of 256 companies worldwide. With a score of 88 points (as of 24 November 2023), EDP stands out as the most sustainable electricity company globally, a position it has held for the third time in the last ten years. This result allows EDP to be eligible for the Dow Jones Sustainability Indices (DJSI).

EDP has once again been recognized globally for its outstanding sustainability practices, receiving a score well above the energy sector average of 34 points. Out of the 26 criteria analyzed until November this year, EDP scored 100 points ('Best in Class') in four of them: climate strategy, market opportunities, business ethics and innovation management.

"EDP is proud to be recognized as a leader at the forefront of global climate action and given our continued commitment to promoting ESG excellence," emphasizes Rui Teixeira, CFO of EDP. “This recognition acknowledges the credibility of EDP's decarbonization strategy, which in 2023 has made great progress towards net zero commitment, as well as the robustness of key values such as innovation and ethics. It also reaffirms our conviction that good sustainability practices can be a transformative force and should therefore be a pillar in any company's strategy."

On climate strategy, EDP was distinguished for its road map to net zero, supported in the consistent reporting in alignment with the core elements and recommendations of the Task Force on Climate-Related Financial Disclosures.

Moreover, in early 2023, EDP raised its ambition towards decarbonization by revising its targets under the new Science Based Targets initiative (SBTi) Net-Zero Standard and announced its commitment to be Net-Zero by 2040. This ambitious climate strategy is included in the company’s Climate Transition Plan, showing high-quality disclosure, that was submitted at the last Annual Shareholder meeting with 99% of approval.

Additionally, the EDP group demonstrated better results in the field of business ethics due to the strategy which started with a subscription to the United Nations Global Compact, the publication of a Code of Ethics, the existence of an ethical process management system and the transparent reporting on breaches.

EDP has consistently demonstrated its pursuit of new business opportunities in the market. In anticipation of the new energy paradigm, where production, distribution and consumption will be increasingly decentralized, EDP offers a range of energy solutions tailored to the specific needs of different customer segments. Their products and services are competitively priced and contribute to improving energy consumption's electrification and efficiency. In solar DG, EDP is a leader in Europe, helping clients decarbonize – since 2019 it has increased 25 times its capacity. Also, sustainable mobility is of particular importance for society and one of EDP's top priorities.

In innovation management, EDP in 2023 connected to the network its first hybrid project in Iberia, which entails an additional contribution to decarbonization and the rise of renewable energies in the electricity network. In the same year, the company has also inaugurated in the Arizona desert, USA, a 23 MWp distributed solar generation project coupled with a 15 MW/60MWh battery. The project was delivered to Mohave Electric Cooperative, allowing the company to partially substitute the use of gas with cleaner energy in its operations, offsetting more than 36,000 metric tons of CO2 per year.

In the APAC region, EDP has recently greenedPulau Ubin’s micro-grid with renewable sources. Situated in the north of Singapore, Pulau Ubin is an island with no connection to the mainland’s power grid and was previously relying heavily on diesel. The enhanced micro-grid now includes a 328 kWp solar photovoltaic system together with a 1 MWh Energy Storage System. With these solutions in place, the enhanced system will reduce the island’s reliance on diesel by nearly 100,000 litres per annum and avoiding 268,000 kgs of CO2 emissions.

These projects are just recent examples of EDP’s global investment in the decarbonization of different types of projects through innovative and sustainable solutions that promote a collective response to the climate emergency. This strategy is fully aligned with the agenda for COP28, and in which EDP will be an active participant.

EDP will participate in COP28, in Dubai, from 30 November to 12 December to share its insights on the energy transition and the strategy to tackle climate change at a global scale. Through this recognition as the most sustainable electric utility in the world by S&P Global CSA, this reinforces EDP’s unwavering commitment to collective climate action and support the call to at least triple renewables by 2030, joining its voice to others towards a tangible outcome at COP28.

The S&P CSA scores are used for the DJSI, S&P 500 ESG Index and several other S&P Dow Jones sustainability indices and involve the participation of a growing number of companies. The CSA forms the basis of companies' ESG disclosures to S&P Global regarding financially relevant ESG factors and underpins the ESG research carried out by S&P's different divisions. The CSA’s best class approach is based on information provided by the companies through the online questionnaire, scored and ranked against other companies in their industry.​​​​​​​