Annual Report - EDP

: annexes :annex IVproposal for theappropriateness of profitsUnder the terms of the Article 30 of the CompanyConstitution, the Executive Board of Directorsproposes to the shareholders that the Net Profit,amounted to € 832,681,739.61, is appropriated asit follows:Legal Reserves.................................€ 41,634,086.98Dividends *.......................................€ 676,459,477.28Donations to Fundação EDP............€ 7,200,000.00Retained earnings............................€ 107,388,175.35*The proposed dividend per share is € 0.185.annex VSUSTAINABILITY CONTENTSreporting principlesEDP’s Annual Report combines economicand financial aspects, along with social andenvironmental performance, since 2008,allowing a wider view of business. The report isseparated in 5 different sections: EDP; Strategy;Performance; Corporate Governance andFinancial Information, describing the company’sperformance between 1 January and 31 December2012. In addition to this annual report:º º EDP reports quarterly to the market and keysustainability information is made available on-line;º º keeps on-line qualitative and quantitativeinformation both operational and environmental;º º publishes sector reports, including the SocialReport and Biodiversity Report, availableat www.edp.pt;º º annual and sustainability reports from theGroup’s companies, HC Energía, EDP Brazil,EDP Renováveis and Naturgás are also publishedand may complement information about thesustainability performance of those companies.Detailed information about contents and theorganization of EDP´s Annual Report is availablein www.edp.pt> sustainability> reports.AA1000APS 2008Dialog with their stakeholders is a commitmentof the company expressed in EDP’s Principlesfor Sustainable Development: Ensure an open,transparent and trustful relationship with thedifferent stakeholder groups; Establish stakeholdercommunication channels and integrate theirconcern; Report performance in a credible,objective way in its economical, environmental andsocial dimensions.Since 2009, EDP has implemented an internalprocess to assess the company’s maturity level, inits strategic, procedural and operational approach,against AA1000 APS (2008) standards. Thesestandards, supported in three main principles:Inclusion, Materiality and Response, are importantto increase the effectiveness of how EDPcommunicates and promotes dialogue, replying tothe expectations and increasing requirements ofdifferent stakeholders.This process is being developed at a corporatelevel, including an analysis of the Portuguesespecificities, along with the ones from the mainEDP Companies, such as EDP Renováveis; HCEnergía and EDP Brazil. Within different maturitystages, the challenge is to guarantee a strategicalignment along with specific approaches to localexpectations. It is EDP´s goal to maintain commonstrategic priorities within all its companies, lettingspecific issues be dealt according with its localimportance. EDP aims to increase the number ofGroup companies with materiality matrices in 2011.EDP - Annual Report 2012The strategic engagement process with EDP’sstakeholders has been improved with theestablishment of the institutional relationsand stakeholder department and a StakeholdersManagement Committee (Pages 137 and 151). Thesenew structures will enhance the communication’spotential of the Group, concerning its stakeholders,contributing to a more fluid and systematizedinformation about EDP’s activities. Theimplementation of this new organization will allowa better alignment between strategic issues andbusiness unit’s specificities.Verification in accordanceto AA1000AS 2008EDP asked KPMG the verification according toAA1000 AS 2008, Type 2. The verification processincludes not only the information disclosed inEDP’s Annual Report 2010, but also the alignmentof EDP’s practices with the principle of inclusion,materiality and response. In www.edp.pt>sustainability> stakeholders> dialog a list withthe main stakeholder segments of EDP is available,as well as the description of the main practicesin place, according with AA1000 standard.Principle of InclusionA stakeholder is each and every agent withinfluence and being influenced by the company’sactivities, in a direct or indirect way. An inclusivecompany promotes participation of stakeholdersin the development of a strategic responseto sustainability. EDP recognises this principlein its engagement processes and commitsitself to improve the process of stakeholderidentification, guaranteeing that the stakeholderperspective is considered.From all the initiatives developed it was possibleto improve the knowledge about the concerns andexpectations of different stakeholders and continuethe action plan ongoing. It is believed that its resultswill contribute to a continuous improvement ofEDP’s sustainability performance. During 2012,a training plan for all employees, whose functionsinvolve contact with stakeholders outside thecompany, started in Portugal (page 96). It is intendedto promote a bilateral and continuous relationshipwith local communities, around EDP’s newinfrastructures. During 2013, at an operational levelit is expected:º º The implementation of three pilot projects in EDPProdução, testing a common engagement processin different generation facilities under operation;º º The extension of the Project Communicationtraining program (ComPro) to more companies.This program will allow a new and dynamicapproach promoting the identification of relevantstakeholders previous to the raising of a new site.At a strategic level, a set of initiatives will continueto be implemented, reinforcing the engagement withstakeholder groups, so far not explicitly coordinated,and promoting the inclusion of new segments notyet properly considered. The new StakeholderManagement Committee will start to meetperiodically to guarantee the internal engagementof EDP’s Companies and to allow a more effectiveresponse to stakeholder’s expectations, aligned withthe International Standard AA1000 and with the bestnational and international practices.Principle of MaterialityThe macro-economic context, where thechallenges of sustainability are increasing,summing up with the diversity of EDP’sstakeholders, results in a large and complex listof important issues, which must be prioritisedaccording to its relevance and significance.An issue is considered material when it influencesthe decision, the action and the performance ofan organization and its stakeholders.279