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EDP Renewables 2013 Annual Report

Economic Performance

Renewable energies have a strong influence in the local communities. Assets are usually constructed in remote locations, bringing positive economic benefits to the local communities, while contributing to the world fight against climate change.

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EC1 – DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED, INCLUDING REVENUES, OPERATING COSTS, EMPLOYEE COMPENSATION, DONATIONS AND OTHER COMMUNITY INVESTMENTS, RETAINED EARNINGS, AND PAYMENTS TO CAPITAL PROVIDERS AND GOVERNMENTS.

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EC2 – FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATION’S ACTIVITIES DUE TO CLIMATE CHANGE.

The non-renewable power sector is responsible for producing more than 40% of all CO2 emissions by burning fossil fuels and about 25% of the total greenhouse gas emissions (GHG). Promoting a shift from conventional fossil fuels to renewable energy is one of the most effective and feasible near-term ways of mitigating climate change.

The company’s growth plans of pure renewable energy represent a solid commitment to foster the use of green energy sources. Moreover, we are committed to support the use the best technologies available in order to preserve natural resources and reduce pollution.

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EC3 – COVERAGE OF THE ORGANIZATION’S DEFINED BENEFIT PLAN OBLIGATIONS.

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EC4 – SIGNIFICANT FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT.
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EC5 – RANGE OF RATIOS OF STANDARD ENTRY LEVEL WAGE COMPARED TO LOCAL MINIMUM WAGE AT SIGNIFICANT LOCATIONS OF OPERATION.

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The values presented in the table above shows the average standard entry level wage compared to the local minimum wage for each one of the countries where we have presence. To protect the privacy of employees’ wages in those countries where our headcount is smaller, we do not disclose the information by country and gender.

EC6 – POLICY, PRACTICES, AND PROPORTION OF SPENDING ON LOCALLY-BASED SUPPLIERS AT SIGNIFICANT LOCATIONS OF OPERATION.

Wind energy creates many direct and indirect jobs. During the construction of our projects, the local community can see an influx of temporary construction workers that provide a positive impact on the local economy through local spending and increased sales tax revenue.

However at EDPR, there is no specific policy or in-house procedure for preferring locally based suppliers.

EC7 – PROCEDURES FOR LOCAL HIRING AND PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS OF OPERATION.

Our Code of Ethics contains specific clauses of non-discrimination and equal opportunities in line with the company’s culture of diversity. This is reflected in our procedures for hiring people via a non-discriminatory selection processes. A potential employee’s race, gender, sexual orientation, religion, marital status, disability, political orientation or opinions of any other nature, ethnic or social origin, place of birth or trade union membership are not considered.

There are no specific procedures explicitly requiring local recruitment. However a high percentage of our employees are hired from the same location in which the company operates.

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EC8 – DEVELOPMENT AND IMPACT OF INFRASTRUCTURE INVESTMENTS AND SERVICES PROVIDED PRIMARILY FOR PUBLIC BENEFIT THROUGH COMMERCIAL, IN-KIND, OR PRO BONO ENGAGEMENT.

Wind and solar energy require infrastructure investments which benefit surrounding communities. This includes the reinforcement of existing electricity networks and the rehabilitation of existing roads or the construction of new roads.

The investment in roads is necessary in order to transport heavy equipment (wind turbine components, power transformers, etc.) to the site during construction. The improved road system facilitates future maintenance activities after construction works, as well as improves access to remote locations for the surrounding communities. During the operation of our wind farms, these roads are maintained and further opportunities may be identified to increase the positive impact in the community.

The integration of our generation capacity may also require upgrades in the distribution and transmission grids that belong to the system operators. Those upgrades indirectly benefit the quality of service offered in the surrounding areas by minimizing electricity supply interruptions.

In 2013, EDPR invested 7.4 million Euros to developing these types of infrastructures.

EC9 – UNDERSTANDING AND DESCRIBING SIGNIFICANT INDIRECT ECONOMIC IMPACTS, INCLUDING THE EXTENT OF IMPACTS.

Wind and solar energies create a positive impact on the local economies in terms of turnover, Gross Value Added (GVA), employment created and also in terms of energy security.

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EU8 – RESEARCH AND DEVELOPMENT ACTIVITY AND EXPENDITURE AIMED AT PROVIDING RELIABLE ELECTRICITY AND PROMOTING SUSTAINABLE DEVELOPMENT

In partnership with the different companies of the EDP Group, EDP Inovação is responsible for performing Research &Development (R&D) activity and its expenditure. A detailed disclosure of the total expenditure in R&D can be found at www.edp.pt.

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