Annual Report - EDP

: performance :Risk ManagementIn 2012 EDP developed in its supplier registrationsystem a risk information database to supportthe consultation and negotiation processes. Theinformation now includes a historical evolution ofthe risk classification in graphic form, and enablesthe more rapid updating of content. Also availableare complementary business information reportsthat are updated by third parties operating in thissector, thus giving the users a more effective toolin reducing associated risks.EDP analysed the incidences of diverse risksin the various supply categories of relevancefor the group and assessed their respectiveimportance, as well as the adequacy of thecurrent monitoring/mitigation practices. Theanalysis revealed that the management systemsin place – namely at the level of internal control,the environment and health and safety – enableadequate monitoring and minimisation of the risksinvolved. Opportunities for improvement wereidentified at the level of positive contributions inthe supply chain and support for the capacitationand development of skills of suppliers.For more information please visit the EDPwebsite: www.edp.pt.3.7.4. contract workThe use of external companies necessarily callsfor strict controls on service quality at everystage, as part of a strategy based on the followingprinciples:º º integration of the environment and safety intothe qualification system for service providers(including a questionnaire on environmentalmatters);º º compliance with environmental and safetypolicies and with all legal requirementsapplicable to service providers;º º implemenation of new prevention and controlinstruments, in particular in promoting andrequiring basic training in environmental andsafety matters for all employees;º º monitoring and assessment of environmentaland safety performance at work by meansof inspections and audits.EDP has implemented qualification systemsdesigned exclusively for subcontractors,particularly for more critical tasks such as theconstruction and maintenance of high, medium andlow voltage electricity grids and live work.EDP supplier qualification programmes andcontract specifications now include criteria thatoblige subcontracted companies to commit tocertain policies, such as not using illegal labour,having quality assurance systems in place andimplementing environmental protection policies.EDP continues to regard excessive subcontractingas a penalising criterion in contract awardprocesses.In the course of 2012 in the EDP Group as a whole,11,635 accident prevention and safety training andawareness courses were carried out involving127,169 external service provider workers in a totalof 973,665 training hours.In Portugal, some of these courses also addressedenvironmental training.A total of 3,159 accident prevention and safetyaudits were also carried out in 3,632 externalservice providers. These cover topics related toworking conditions and respect for human rightswithin the framework of SA8000. In addition, 215environmental audits were carried out to EDP’smost important suppliers, in Portugal.The results of the actions and initiatives carriedout during 2012 to improve conditions of82occupational safety, namely in the areas of trainingand awareness, risk assessment and control,and accident prevention in the service providersand the increase in the audit and inspectionprogramme, are also reflected in the accidentfrequency and severity indices.The accident frequency index was 5.4 accidentsper million working hours, which is a reduction of11% in relation to 2011. The severity index was 298days lost per million working hours, which is down2% from the previous years. Despite these efforts,we regrettably have to report 13 fatal accidentsduring the year, 8 of them in Portugal and 5 inBrazil.For 2013 EDP is planning a programme ofinformation days on occupational health and safetyinvolving its service providers.For aditional information go to www.edp.pt>sustainability.3.8. community3.8.1. measuringthe impact on thecommunitySocial InvestmentAs part of its corporate patronage and sponsorshippolicy, EDP supports initiatives and projects in theareas of the environment, culture and heritage,education, energy efficiency, entrepreneurship,health, social welfare and tourism in the regionsin which it operates.The main agents in this voluntary engagement withthe community are the EDP Foundation in Portugal,the Fundación Hidrocantábrico in Spain and theEDP Institute in Brazil.EDP’s voluntary social investment has beenreported since 2008 in accordance with theLBG (London Benchmarking Group) method.For detailed information on this method pleasego to: http://www.edp.pt/en/sustentabilidade/sociedadeecultura/avaliar/Pages/Avaliar.aspx.In Brazil the support provided also includes 0.25%of the profits of the distribution companies, whichare invested in measures aimed at assistinglow-income customers, particularly in the areasof energy efficiency and access to electricity.In the other geographic areas a number ofcommunity initiatives are implemented to offsetthe impacts caused by new EDP projects.EDP has been using the standard LondonBenchmarking Group (LBG) method to measureand assess voluntary contributions since 2008.Parallel to this, the EDP Foundation has alsoapplied the SROI (Social Return on Investment)technique to measure the social impact of someof the foundation’s partner organisations’initiatives. In 2012 this method was appliedto 7 projects that have been previous winnersin the EDP Solidária Nacional and SolidáriaBarragens Programmes.A World Full Of Energy