Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsNotes to for the the Consolidated years ended and Company 31 december Financial Statements 2012 and 2011for the years ended 31 December 2012 and 2011Investments of an environmental nature recorded as Property, plant and equipment assets during the years 2012 and 2011 are analysed as follows:GroupThousands of Euros Dec 2012 Dec 2011Air and climate protection 4,573 19,301Water management 285 382Waste management 466 680Soil, subterranean and surface water protection 1,679 1,940Noise and vibration reduction 141 93Biodiversity protection 8,883 9,360Landscape protection 6,147 5,718Energetic efficiency 1,228 94Research and development in the environmental area 21 37Other environmental management and protection activities 8,214 10,58131,637 48,186Investments recognised in Air and climate protection as Property, plant and equipment in 2012 include costs incurred by EDP Produção of 4,172 thousands of Euros (31December 2012: 18,674 thousands of Euros). The main assets correspond to gas desulphurisation and denitrification equipments of the Sines thermoelectric plant,which at 31 December 2012, have a net book value of 248 millions of Euros (31 December 2012: 274 millions of Euros).During the year, the Group recognised expenses that are analysed as follows:GroupThousands of Euros Dec 2012 Dec 2011Air and climate protection 6,958 3,200Water management 1,946 3,079Waste management 4,528 2,966Soil, subterranean and surface water protection 4,861 5,235Noise and vibration reduction 133 94Biodiversity protection 5,413 5,728Landscape protection 1,930 95Energetic efficiency 4,116 55Radiations management 7 99Research and development in the environmental area 481 949Other environmental management and protection activities 18,504 7,73648,877 29,236Under the current and future social/economical trends and the practices followed by the EDP Group in matters of sustainability and environment, the group accountsfor provisions to cover the costs with the restoring and decontamination of land where the electric power plants are located, of 56,044 thousands of Euros and 20,194thousands of Euros as at 31 December 2012, for the electric power plants located in Portugal and Spain, respectively. Regarding gthe liabilities to dismantle and restorethe land where the wind farms are located to its original condition, as at 31 December 2012, the provisions amount to 63,336 thousands of Euros. Additionally, theprovision to dismantle the Trillo nuclear power plant amounts to 29,059 thousands of Euros (see notes 2 o) and 37).During the year 2012, EDP Group incurred in fines and other penalties for breaching environmental regulations and indemnities to third parties related with pastpollution of 2,218 thousands of Euros.Environmental income recognised in 2012 relates to the sale of environmental subproducts of 2,797 thousands of Euros (31 December 2011: 4.742 thousands of Euros)and the sale of environmental waste of 1,971 thousands of Euros (31 December 2011: 2.186 thousands of Euros).53. SEGMENTAL REPORTINGIn accordance with IFRS 8, an operating segment is a Group component:(i) that engages in business activities from which it may earn revenues and incur expenses;(ii) whose operating results are reviewed regularly by the Group's chief operating decision maker to make decisions about resources to be allocated to the segmentand assess its performance; and,(iii) for which discrete financial information is available.The Group develops a set of regulated and liberalised activities in the energy sector, with special emphasis in generation, distribution and supply of electricity and gas.The Group manages its activities based on several business segments, which includes the activities in Iberia. Moreover, the EDP Group also makes a separateanalysis of the electricity generation business through renewable power sources, which is achieved in a specific segment (EDP Renováveis). Finally, taking intoconsideration the specificity of the Brazilian market, the Group also makes a separate analysis of the electricity generation, distribution and supply businesses in Brazil(EDP Brasil).The Executive Board of Directors regularly reviews segmental reports, using them to assess and release each business performance, as well as to allocate resources.EDP - Annual Report 2012253