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Energy without limits · December | January * 2010 /11 Nº20
BIODIVERSITY EDP on the global forefront?
PHOTO ESSAY The award-winning photos of team members from EDP Renewables
MARKETS EDP with the best financial report in the world
SPOTLIGHT Miguel Amaro looks back at the Brazil IPO five years later
WHO’S WHO The Director of Creativity at the Cirque du Soleil on creativity and satisfaction in the workplace
IN DISCUSSION Economic competitiveness comes to the energy sector
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editorial
on
For a better world
E
qual to climate change, biodiversity is seen as one area that demands urgent intervention. The global loss of biodiversity over the past half century, and the various scenarios proposed by the Millennium Ecosystem Assessment, point to a loss rate that will accelerate on a global scale. The EDP Group is well aware of this crisis, and in 2007, we became one of the first firms to implement a biodiversity policy. Since then, we have strived to contribute to global efforts aimed at halting the loss of more species on our planet. The results are plain to see. Ours was the first Portuguese company to be listed on the elite global Dow Jones Sustainability Index (DJSI), where we achieved a remarkable position (77 points, up three points over the previous year) for our performance in the environmental dimension. According to the same index, the EDPG showed real growth in alignment with industry practices as the result of our efforts in the area of environmental management (particularly with regard to biodiversity and climate change strategy, for which we received the maximum score). We owe our position on the DSJI to a strategy embraced by more than 12,000 team members spread over 11 countries. In 2010, EDP published its first report on biodiversity, which detailed the impact of the company's activities thus far on biodiversity, how it has been minimized, and if that has proven impossible, how it has been offset. The report focuses on how the company sees and deals with the challenge of biodiversity, through the partnerships and projects it creates, and by the results obtained. But biodiversity is much more than a bunch of ecosystems and species to EDP: it is an integral part of the Group's asset management structure. The proof can be found in the business strategy we proudly invest in: growth from renewable energy, particularly wind and water. By 2020, we intend to achieve more than 3.5 GW of installed power in water generation and more than 274 GW of installed power in wind power – clear evidence of the importance of biodiversity to our management structure. Reducing biodiversity loss is everyone's responsibility. UNESCO joined the Convention on Biological Diversity and declared the year 2010 to be the International Year of Biodiversity, encouraging partners at the global level. The Year of Biodiversity is an effective instrument in promoting the conservation of biodiversity around our world. EDP believes that we can contribute to this objective by internally building a set of strategies and putting to motion a set of action plans – all of which you can read up on in the following pages of this issue of ON.
Paulo Campos Costa Brand and Communications Manager
Biodiversity is much more than a bunch of ecosystems and species to EDP: it is an integral part of our management on 3
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index December | January 2010 was declared the International Year of Biodiversity. The goal of reducing the loss of our planet's rich biological diversity and raising awareness about its importance can only be achieved if all sectors of society participate. Discover how EDP is doing its share.
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Photo Essay EDP Renewables held a photography competition among its employees. The results were surprising.
On is a bimonthly edition Owner EDP – Energias de Portugal, SA Praça Marquês de Pombal, 12, 1250-162 Lisboa Tel: 210 012 680 Fax: 210 012 910 gmc@edp.pt Director Paulo Campos Costa
4 on
Publisher Península Press SL Rua dos Correeiros 120, 4º esq , 1100-168 Lisboa Executive Director Stella Klauhs info@peninsula-press.com Editors Eduardo Marino (editor), Joana Peres (staff writer), Art Marta Conceição, André Noivo Photography Hugo Gamboa, José Reis e Adelino Oliveira, iStockphoto, SXC Copydesk Ana Godinho EDP Coordination Margarida Glória Complimentary distribution Portugal - 23,000 copies; Spain - 2,000 copies; Brazil - 2,500 copies; America - 500 copies Heska Industrias Tipograficas Campo Raso, 2710-139 Sintra - Portugal. Tel. +351 21 929 89 58 (Main) Fax +351923 89 51 Registration Exempt at ERC, under the decree 8 / 6, article 12 n. 1-a
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i n d ex
46 Miguel Amaro, vice president of management control, finance and investor relations for EDP Brazil, talks about the company's achievements, industry objectives and objectives for the upcoming year.
6 forum We asked EDP's employees how they contribute to reducing their carbon footprint in the workplace.
7 stock 8/15 edp culture The focus is on EDP's Group Information Systems, the second edition of Media Day and the EDPro project, all part of the EDP Way program.
16/19 innovation
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Get to know novelties presented at the Innovation Day, sponsored by the EDP Group.
Cover Theme: Biodiversity
20/23 market The Customer Relations Department hosts a meeting on "EDP's Customer Experience."
Who? 34 Who's Lyn Heward, Cirque du Soleil's Director of
24/25 causes
Creation
40/41 our energy We highlight the news that connects EDP's production centers to their surrounding communities.
42/45 human capital More than 200 people celebrated the accomplishments of RH +.
64 Spotlight Carlos Cavaleiro, chief engineer of thermal construction at EDP Brazil.
Discussion: 38 InSecretary of State Carlos Zorrinho introduces the theme "Competitiveness With Energy." on 5
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forum* S H A R I N G K N OW L E D G E · A n O n q u e st i o n
Carbon Footprint The term "carbon footprint" refers to the effects of human activity on Earth's ecosystems and the amount of land and water that our planet would need to regenerate its resources, taking into account all the material and energetic resources spent by a given population. To calculate that footprint, it is necessary to add all the components that adversely affect a variety of environments, including open land, pastures, forests or urban centers. If you would like to assess the overallimpact of your lifestyle on the environment, go to: www.eco.edp.pt/pt/jovens/simular/mede-a-tua-pegada/simular
HOW DO YOU CONTRIBUTE TO REDUCING YOUR CARBON FOOTPRINT AT YOUR WORKPLACE?
CO2
• I turn off all the lights before leaving for the day. (176) • I recycle paper. I use a separate container for old paper. (142) • I turn off machines not in use to avoid expending energy unnecessarily. (90) • I only print if really necessary, using always the reverse side of printed paper for new impressions in draft mode or to take notes. (89) • I avoid using air conditioning and other cooling systems. (37) • Reduce business trips. When possible I try to replace them with tele- or videoconferences. (26) • I try to use as much solar energy as possible. (24) • Other. (22) • I reduce the brightness of my laptop's screen so that the battery lasts longer. (8)
COMMENTS / ADDICIONAL SUGGESTIONS "At my workstation, I placed a collection point for unloaded batteries and take them to be recycled, separating the alkaline batteries from the mercury and lithium ones ... I promote the collection of plastic bottle caps that I periodically deliver to the Red Cross office, in Setúbal, so that it can obtain and distribute wheelchairs to the underprivileged. I also promote the recycling of used copy paper for scratches.” PORTUGAL "I use the stairs to go to my desk." SPAIN "Besides the mentioned behavors, I walk to work (1.2 kilometers), thus avoiding the use of my car, which produces CO2 gas." BRAZIL 6 on
"I avoid drinking individually bottled water by using a glass, and I get water from the bottle dispensers available on every floor." PORTUGAL
"I bought a car with eight seats, and since I live in Vila Velha, I always bring seven EDP colleagues to work." BRAZIL
"I work in the EDP Escelsa’s office in Cachoeiro de Itapemirim. Here we have adopted the use of individual glasses and mugs for employees, thus reducing the consumption of disposable cups." BRAZIL
"I collect bottles and caps from meetings to be recycled. This Christmas, I collected printer cartridges and toner to donate to the charity "Ajuda de Berco" at no cost to the company." PORTUGAL
"We use rechargeable batteries for different devices." SPAIN
I only use the elevator to go up four or more floors; I do not take the elevator to go down nor even when I have to go up one, two or three floors." SPAIN
"I avoid opening the refrigerator door so many times a day." BRAZIL "Reduction of water flow, plastic and coffee capsules sorting, and avoidance of printing colorful backgrounds in "ppt" and "pps" to save ink." PORTUGAL
"I separate waste by types." PORTUGAL "I’m conscious that we can do much more, but I believe that
small gestures on the part of each of us can become major transformations. Here are some examples of what I already practice daily at the office: At the end of each workday, I check whether all equipment ( printers, computers, air conditioners, etc.) are turned off. I always try to inform the general service when there is a leak, such as a dripping faucet in the bathroom, and I use an individual mug for drinks instead of disposable cups. On cooler days, our office leaves the windows open in place of using AC." BRAZIL "I close the windows that other colleagues have opened, when the HVAC cooling system is working.” PORTUGAL
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t h e st r i n g s o f t h e m a r ke t
EDP PORTUGAL 2,8 2,8
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EDP RENEWABLES 5,00 4,50 4,00 0 4,47 3,50 3,00
In 2010, EDP was declared the "best company in the world" by the "IR Global Rankings" (IRGR) in the category of financial reporting. According to the IRGR, which compares 503 companies from 35 countries, last year the EDP Group provided an excellent example for other firms, not only in terms of accuracy, transparency and consistency but also quality of information. EDP was also recognized as one of the very best businesses in terms of corporate governance. To assure independent and fair results, the evaluation was performed by an independent committee using test results and assessments developed by IRGR analysts.
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edp culture Examples of the most efficient means and values
EDP as a window on technology for the world
EDP was recently visited by three utilities looking to learn more about the company’s information systems, shared services systems and specific aspects of its shared services. Their interest is just another sign that the Portuguese electricity sector is already a world leader in this area Among the levers of utilities development in the energy market are two points of market differentiation: the increasingly deregulated information systems (IS) industry and structured evolution of support services such as shared services. It is not surprising, therefore, that these areas are sought out by utilities through benchmarks, case studies, and visits to the companies at the forefront of industry deployments. On the cutting edge of IS support, the EDP Group is set apart by the effectiveness, efficiency and productivity of its practices and ability to rise to the demands of operating in new energy markets. Proof of its reputation as a leader in utilities development can be found in the many requests from utility companies around the world to see firsthand how EDP meets such challenges through its support systems. The state-run Public Power Corporation of Greece (DEIPCC) visited EDP on Sept. 28, 8 on
2010, to see how the company manages level Information Systems Geo referenced control systems and network incidents distribution. EDP has an integrated solution and a set of automated systems, such as the SIT DR and the Power On GME, which support, respectively, network registry, information from incidents and network maintenance, as well as maintenance teams and technical support through the integration of Web technologies and GIS mobile technology. In addition, EDP was greeted last fall by a delegation from the State Grid Corporation of China (SGCC), the company responsible for the distribution and transportation of the state's energy supply in several provinces. SGCC has about 1 million employees and ranks eighth among the top Forbes 500 companies. Interested in information systems and the shared services assembled by EDP Value, the SGCC committee came calling on Sept. 27, 2010, to discuss
and listen to a presentation on how to implement business systems. Beyond the team from the Information Systems department (ISD), they met with Henrique Oliveira, of Project Lince, and Ricardo Nunes, from the Office of Customer Service at EDP Valor. The focus was on the exchange of knowledge in terms of best purchasing practices between companies in the same group when EDP Office of Negotiation and Purchasing (DNC) welcomed Vattenfall and their representatives, Johanna Hagelberg, CPO, and GĂŠrard Jacquemin, CEO. Vattenfall is the fifthlargest energy producer operating in Europe's electricity markets such as Belgium, Denmark, Finland, Germany, the UK, Poland, Holland and Sweden. DNC sought to deepen its relationships with counterparts operating in international markets and to visit the EDO offices of RWE and Iberdrola Purchasing.
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e d p c u l t u re
EDP Communications recognized in Vienna EDP won three awards in the field of communications at the FEIEA (Federation of European Business Communicators Associations) Grand Prix 2010 ceremony held at the Center of Industry in Vienna, Austria. Honors went to edpON corporate television and the I’m + EDP portal, which both earned second place in their respective categories, and the magazine ON17 on InovCity, which came in third. Before reaching Vienna, the winners of Grand Prix were put through three rounds of evalua-
tions. First, a national jury reviewed applications, and then the top three finalists in each category were sent to Brussels to be judged by a European jury. Next, after the second set of evaluations, one participant in each area (per country) was sent to the final round. This year, seven panelists from seven countries took three days to judge the nominations and pick the winners. Danish judge Henrik Vinther said, "I was impressed with the quality of work, especially in multilingual publication and [category of?] ‘Internal or News Magazine.”
Information Systems help EDP mobility EDP mobility initiatives provide team members and their companies with effective, cross-platform information systems that are functional and in alignment with the mobility of the business.
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he team in charge of distribution of HC Energy and the staff of ISD Oviedo have finished the development and implementation of a new feature in the mobility. From their authorized Blackberrys, team members can view incidents, check the status on the electricity grid average, and monitor low voltage. As a result, network operations are much more agile and it is much easier for teams on the ground have an easier time as well.
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lso used at EDP Distribution in Portugal is the GME Production System. Operated by the Management and Mobility Teams, this system manages, operates and dispatches the work-order process (including commercial and maintenance issues) and the collection of information generated during the execution of work orders by the teams on the ground - ie the pickets.
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nother enhancement to the company mobility is Web mail, which enables employees to check their email accounts, calendars and
task lists anywhere, provided they have Internet access at their location.
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n terms of geographical mobility performing the same function, there is Target EDP, a management system of financial flows. This unique platform, whose features have been standerized throughout the entire company (including Brazil and the United States), allows a time zero adjustment for team members between companies and countries.
within Group-level Administration and Financial and Human Resources. With Lince, it is possible to change the company, country and type of business while working with the same basic system and all the gains in learning and efficiency that it entails.
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lso the management of warehouse was streamlined thanks to the implementation of an automated supply managment system. Now the input of materials, as well as their output, loss, and transfer between warehouses is recorded through the use of bar code readers that emulate a portable screen for the functions of SAP.
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inally, there is Project Lince, which serves as a metric for creating a single baseline of work on 9
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edp culture
Pita de Abreu person of the year EDP’s Brazilian president was declared the “Person of the Year” by the Portuguese Chamber of Commerce in Brazil – São Paulo, Brazil, with Brazilian President Lula in attendance
“
t is an honor to receive an award like this one. I have worked for EDP for 33 years, and the company is a very important part of my life.” This was the reaction from António Pita de Abreu, president of EDP Brazil for the past three years, as he received the Person of the Year Award from the Portuguese Chamber of Commerce in Brazil last November. Now in its 11th year, the Person of the Year Award was given to Pita de Abreu after a vote by some 800 business leaders associated with the Portuguese Chamber, in recognition of the investment EDP has made in Brazil in recent years. During the event, Pita de Abreu sat at the head table along with Brazilian President Luiz Inácio Lula da Silva; government ministers Orlando Silva (exports) and Luiz Barreto (tourism); the mayor of São Paulo, Gilberto Kassab; Sen. Aloizio Mercadante; Chamber
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President Manuel Rodriques Tavares de Almeida Filho; Portuguese ambassador to Brazil João Salgueiro; and Luiz Ortiz Nascimento, of Camargo Corrêa.
During his remarks, President Lula touchedon a past that united Portugal and Brazil and the advantages that such partnerships can bring to the future. In addition, the president Lula was given a special Person of the Year Award to commemorate his economic and social work [to commemorate his work in social and economic development?] over the last eight years.
TV On Brazil wins the 2010 Aberge Award
3.000 Videos Produced
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EdpON, the television service of the EDP Group, won the 2010 Aberge Award for "audiovisual media" for the region of São Paulo. As the most prestigious business communications award in Brazil, the Aberge seeks to strengthen and stimulate companies' communications strategies and recognizes initiative and work in the area of communications and stakeholder relations. To Flávia Ramos, the communications and brand manager of EDP Brazil, EDP On is more than a communications channel; it brings together team members across the company. “The Brazilian production team achieved important results in the integration of professionals, inspiring in everyone a satisfaction of being part of the company,” she said. More than 3,000
videos have been produced by edpON worldwide since 2008, and the Brazilian team has made more than 20 percent of them. In Brazil alone, almost 200 interviews were taped in 2010 with various professionals, including team members, specialists, journalists, athletes, clients, executives and others. According to Alexander Taricani, a branding and communications consultant specializing in television, the Aberge Award recognizes best practices and communication by the group. of best practices and communication by the group. To edpON Brazil reporter Milene Pinheiro and her fellow team members, the award represents market-level recognition of the channel's dynamic form of strategic corporate communications.
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edp culture
Meeting between journalists and EDP’s administration team
Media Day 2010 The Portuguese media got to know more about EDP, on the second edition of Media Day - an initiative that highlights the openness and transparency that form part of the Group’s DNA or the second consecutive year, EDP organized Media Day, a meeting between the Group’s administration team and journalists, with the objective of discussing business and marketing trends. The initiative, which is part of EDP's openness and transparency policy, was once more a winning investment. This year, 22 journalists and directors of major national media attended and had the opportunity to watch presentations on issues related to the activity of EDPG and later ask questions of the Group's administration team. One day before the start of the meeting, the same communications professionals were invited to a CARM wine tasting. Accompanying them on this journey of smells, flavors and sensations was Filipe Vale, the winemaker responsible for the selection of Douro wines featured. During the tasting, the journalists were able to sample various Portuguese wines of excellence. Media Day is a privileged channel for sharing
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information and knowledge with the media and, consequently, with its customers and the community. According to Nuno Vinha, from Lusa (Portugal News Agency), this meeting “is great as it has facilitated a lot our understanding of how the energy business works." For Fausto Coutinho, from Antena 1, the meetings are important from the viewpoint of the relationships: "We gain knowledge and in a less committed, more informal climate." Ana Gonçalves, from Diario Economico, said in a peremptory manner: "It's a unique opportunity to 'put pressure' on the men of EDP. My concern was to try to decode some of the airtight issues to pass to the general public." After presentations on various business areas made by the directors of the holding company, João Manso Neto, Antonio Martins da Costa and Jorge Cruz Morais, it was time for "one-on-one” questionand answer sessions with Antonio Mexia, in which each journalist had the opportunity to interview the CEO of EDP individually.
At the end of the day, each journalist had the opportunity to interview the executive chairman of EDP o n 11
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e d p c u l t u re e d p w a y
Given the vital importance of consolidating the business end, creating value and increasing the implementation of the new cycle outlined by the Strategic Plan 2009-2012, EDP launched the EDP Way. This project, which includes EDPro, aims to manage Group procedures effectively and launch a new systemic approach to measure and improve performance.
Vision An integrated project of the EDP Way program, EDPro focuses on effective management of the Group's procedures through the following measures: • Implementing a common model for the management of governance procedures in all geographies and business groups; • Launching a systematic approach to measuring and optimizing the performance of key procedures.
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e d p w a y e d p c u l t u re
Outline of the common model of governance for process management The Governance Model aims to standardize concepts and management practices across the Group, including in the following areas: • Process management, focusing on measurement and optimization and taking into consideration the various possible dimensions (e.g., performance, control, safety, quality, sustainability, etc.). • The concept and methodology associated-
with the classification and prioritization of steps in the process and their optimization. • The roles and responsibilities of variousplayers in the model (Directorate of Development Organizational Corporate Center (DDO), organizational units that support the management process, business, process stakeholders, etc.). • The framework for classifying APQC
processes, to serve as a benchmark for the design. Procedural architecture for each business. • The standard symbols BMPN (business process modeling notation) as a reference for the design of procedural flowcharts. • An iBPMS tool, to serve as the preferred instrument for supporting management processes.
Main implications of adopting the governance model: • Implementation by the UNs of an annual cycle, with optimization of their key procedure, developed in conjunction with the annual planning and budgeting cycle. • Assignment of business processes to organizational units, under the consolidation of a global vision - including the internal control system (SCIRF) - as well as drafting development of the ongoing optimization.
• Assignment of the definition of policies, standards and procedures in this area to the DDO, as well as outlining the general role of orchestration and consolidation management processes at EDP, in addition to defining DDO's role in management support of key business procedures. • Building of responsibility among players
Identify and document
at all levels of the governance model, to establish indicators and objectives for improved efficiency. • Accountability of process stakeholders in the performance and achievement of their procedural objectives, with responsibilities shared among other key operational players.
Prioritize
Mon ito r/
e alyz
An
le m
t
en
Process management is a systematic approach to ongoing activities developed around the implementation of everyday procedures. It includes the documentation of every step of the instrumental processes so that they can be optimized and improved upon before becoming the focus of measurement and performance.
Imp
Management concepts in the underlying governance model
e sur ea M
ecu Ex te
O p ti m i z e
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e d p c u l t u re e d p w a y
Major contributions to effective process management within the Group adopted three pillars of value creation: The Group created basic building blocks to establish a common model of governance. The blocks were developed to align, facilitate and enhance the initiatives of business units in the management process. Since completing a set of awareness alignment ["a set of awareness alignment" sounds weird to me. " a set of alignment exercises?"], various EDP businesses have been working actively to implement EDPro. Specifically, their efforts have focused on identifying key processes and process stakeholders, defining KPIs (key performance indicators), implementing a support tool, and, for the first time, fostering the cycle optimization for key processes through the inclusion (including costs and benefits) of specific initiatives in the following areas:
Controlled risk
Superior Efficiency
Directed Growth
• Greater control over operational developments through performance of key procedures
• Greater knowledge of impacts of operation’s processes variability • Analytical support for operational decisions
Aspect most directly impacted by active case management, particularly through these key activities: • Systematization • Performance review • Optimization of key
processes • Standardization by identification and dissemination of best practices • Monitoring and control
• Freeing resources to sustain growth • Allocating resources to procedures (and soon to operations) and the aligned strategic results
• Facilitating the integration of effective procurement • Increasing sensitivity to opportunities and operational constraints
EDP Distribution aligns the company's processes with its business needs As part of the EDPro program, in 2009 EDP Distribution undertook a new initiative to ensure better alignment between its processes and organizational structure. The team members' goal was to provide the company with the capacity to respond through the cross dissemination of knowledge and the sharing of best practices, while taking into account regulatory factors. To this end, key processes were identified, represented and characterized by their priority indicators so as to integrate simultaneously the performance management process and SCIRF. The iBPMS tool set selected by EDP supported all this activity.
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e d p w a y e d p c u l t u re
EDP Renewables: uniform processes everywhere in the world
Process management as a performance tool of EDP Brazil
In addition to designing several processes in BPMN with implementation provided by EDP Renewables (EDPR), EDPro developed a set of guidelines for managing and running processes (namely, which specific rules to use, whether the process involves a corporation, platform or business unit anywhere in the world).
EDPro implementation in Brazil covers the design of process flow in BPMN, KPI definition, SCIRF integration, and identification of opportunities for improvement (quickwins) in the management of the following processes: strategy (particularly,planning, architecture, integration and implementation), billing of utilities; investor relations; business generation; and human resources and financial cycles (including treasury, accounting and taxation).
Principal benefit yielding results Effective process management is indispensable to the construction of an EDP Group global culture. Together with the other projects of EDP Way, EDPro is expected to achieve specific results upon its implementation: • Common practice management and well-
-oiled process optimization supported by informal structures; • Processes and a clear framework to replicate them in other business/territories; • Facilitated mobility within the Group between regions and businesses; • Rapid and efficient integration of proces-
Rui Ferin Cunha - Head of the EDPro project
ses into new platforms; • Facilitation of benchmarking and the identification and global adoption of best practices in the Group; • Better knowledge management - a truly decisive asset for organizational success.
António Martins da Costa - Sponsor of the EDPro project
The process is a valuable asset worth managing
EDPpro is a leadership tool
EDPro plans to harmonize the way we manage and maintain our processes, which is one of the most important assets that EDP has available and one in which it invests heavily each year. It is imperative that we take good care of this asset and oversee its management. The cases represent the activities in EDP necessary to deliver and satisfy customers. They are the things that distinguish us as a company. The processes are still the basis of common work. In addition to their performance, many colleagues manage information technology, internal controls,risk, quality, safety and environment concerns. Such careful management has allowed us to establish the annual planning cycle for process optimization, which covers major NUs [WHAT's THAT?] Group and implies engagement on the part of process owners and NU in identifying key processes in order to measure and optimize the way we do things.
EDPro is one of the projects that help our EDP Way program to give a greater sense of alignment to the Group’s culture. Management processes common to the whole Group tend to focus on activities of execution, making them a priority and method of differentiation for customers, which leads to higher levels of performance. The dominance of these processes, as well as their measurement and systematic attention, create constant opportunities for improvement that are vital to sustaining the preferences of customers and the leadership of the EDP business in which EDPro operates.
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innovation* For the second time, the EDP Group sponsored a day dedicated to innovation. The Pavilion of Portugal was the venue as both EDP team members and company partners came together to share best practices and new ideas - another clear sign that sharing knowledge reinforces a culture of innovation
Innovation Day: Think out of the box
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team members were tuned in online, with an average of 100 people chatting and interacting at a time. Attendees at the Pavilion of Portugal had the opportunity to learn more about various Group projects in which innovation has come into play at all levels: electrical mobility, panels ... Antonio Vidigal, president of EDP Innovation, was the first to open doors by saying "we are doing this kind of meeting to de-
v
On Oct. 28, the Pavilion of Portugal in Lisbon hosted the "Energy of Innovation" conference. There were many who wanted to join this revolution of ideas (about 250 people, including team members and partners), but this event went far beyond the Nations Park area, surpassing all physical barriers. Innovation Day was broadcast live on EDP ON [again, not sure how you want it formatted: EDP ON or edpON], via giant-screen TV and also online. More than 2,000 EDP
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i n n ova t i o n
2.105
hits or transmissions online
250
monstrate that innovation is a part of our everyday life and that sharing ideas reinforces a culture of innovation."
A public company According to Cruz Morais, director of CAE, innovation "is a path to discover new approaches to old or new problems. And the sector debate was exactly that. All changes to the marketing of fuels, oil and CO2 have made the electricity sector undergo change in two vital ways: by consuming energy more efficiently and 'decarbonizing' the production sector." In a sign of this openness between EDP and colleagues, Ricardo Mendes, of Tekever -Technologies for the Evernet, had this to say about "collective intelligence": "In this particular case, energy efficiency is our belief -- only through collaboration between consumers can we achieve a higher level in terms of collective intelligence." And he praised the role of EDP: . And, he praised the role of EDP: "It has a structural role, because it is one the few companies in Portugal that has the ability to see projects on a national scale. In terms of structure, InovGrid for example is one of those projects that can be the basis for launching other products that will be first implemented in Portugal. With that new thinking, we will certainly be innovators on a world scale. " Carlos Zamora, from Arquiled, spoke to the audience about
people in the room
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people chat simultaneously online
the innovation, differentiation and sustainability that LED technology has offered, and he examined the internal processes of innovation in enterprise. For him, innovation is a multidisciplinary process that embraces all areas. The conclusion is that the paradigm has changed a lot. The secret no longer is the soul of business. "It's the opposite," argued Mexia, CAE EDP president. “We have to discuss and do better. Sometimes we have the idea that knowledge is only ours and that is power. But if power is shared, the possibilities are greater." This is something the company has known and done with its partners. But part of explaining the new process involved telling the audience to take their ideas outside the box of everyday thinking. How? By reinventing processes, methods and solutions through objects as simple as a tennis ball, funnel, pot and hanger. Yes, that’s right! New thinking led to many ideas that sprung from the boxes with just those items at the participants' table, demonstrating that, after all, it is possible to reinvent. Innovation Day concluded on a big note: a presentation on the company's social co-creation site, which will serve as a doorway into the world of collecting and sharing ideas. According to Tiago Antunes,of EDP Innovation, "This site aims to stimulate the environment at EDP and encourage everyone to participate." Some participants have posted and tested their ideas, which you can learn more about at www.cocreation.edpinovacao.com.
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i n n ova t i o n
Floating Platform
1200 metric tons of steel Turbine
60 meters tall and 2MW
Windfloat: Energy from the high seas Windfloat, one of the most ambitious projects in terms of technological development in Portugal, is under way The Windfloat demonstration project includes the development and installation off the coast of Aguรงadoura, in northern Portugal, of a floating scale platform (built to the Atlantic climate) equipped with a 2-MW turbine. Shaped like a triangle, the steel test platform is semi-submersible and weighs about 1,200 metric tons as the turbine reaches 60 meters in height. This platform/turbine will be tested for 12 to 24 months and, depending on the results, will evolve into a pre-commercial and trade-based product. The great advantage of this floating wind technology is that it allows for the exploration of wind energy in deep water (more than 40 meters), giving Windfloat
a real edge over alternative systems with fixed foundations. It can also be assembled beforehand on land (and then towed), minimizing what can often be difficult work at sea. To turn this project into a reality, EDP signed contracts with Principle Power (the U.S. promoter), to develop the project, and Vestas (the largest manufacturer of wind turbines in the world), to supply the turbine. Together with EDP Innovation, the Portuguese [wind-energy? not sure of field it's in] company A. Silva Matos has strongly supported this innovative project through national funding.
EDP Ventures: first direct investment In October, EDP Ventures (the venture capital fund for EDP clean energies) completed its first investment. Directly in line with its business strategy for 2010, the fund acquired a stake in Arquiled Lighting Projects, SA. Founded in 2005, Arquiled was the driver behind the development of technical solutions for lighting in the new 18 o n
Lisbon Casino. Its activity focuses on architectural lighting, with particular emphasis on L.E.D. technology and the potential for evolution and innovation that characterizes the field. Arquiled already has a large portfolio of successful projects, including the Lisbon Casino, Museum of the Orient, Hilton Hotel, Galp Tower,
Church of St. Roque, Hotel Troia Design and LUX Nightclub. Remember that at the beginning of its activity, and within the investment strategy in venture capital funds, EDP Ventures had already made its first two investments in the Cleantech fund, NGEN Partners, United States, and the SIGMA Capital Group, United Kingdom.
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Antonio Laporta at Green Mobility Antonio Laporta, EDP’s director of innovation strategy, was in Germany to discuss sustainable mobility initiatives during the European Mobility Green Tour, which is supported by EDP. The tour came to the cities of Berlin, Nuremberg, Munich, Stuttgart and Freiburg, where Laporta had the opportunity to experience the innovative solutions for sustainable mobility and urban transport adopted by the towns and major German companies. Thanks to his marathon visit, Laporta brought new knowledge of sustainable mobility development to EDP as well as confirming the company's alignment with some of the world's most innovative projects.
RESEARCH TEAM MULTI-COMPANY Five Spanish electricity companies, including HC Energía, have been collaborating since 2008, developing projects for substation automation and electrical equipment according to the IEC-61850 standard. They have submitted their findings to systems providers in Madrid. The group's mission is to research and reconcile the demands of communications protocols with the systems provided by suppliers and to optimize methods and reduce costs. The aim is to incorporate new ideas as a mandatory requirement in all bidding for substation automation. In reality, HC Energia is already implementing this agreement in the bidding system for new remote substations like Romio, Silvota and Lloreda, E3-61850 (along with HC Energía, Endesa, REE, and Iberdrola UFGas Natural). This is a good example of collaboration among companies with the same objective in mind.
Waynergy wins the EDP Richard Branson Prize In January 2010, EDP, Visão and Exame, launched their second EDP/Richard Branson Innovation Award, offering a cash prize of 50,000 euros for the project that demonstrates the best innovative approach to clean energy. The big winner this year was Waynergy's idea for a sustainable pavement that uses a combination of alternativeenergy sources to produce electricity in interior and exterior spaces. This project, developed by Casimiro Filipe and Francisco Duarte, distinguishes itself from other models on the market because it can be applied indoors or out, in such places as trade centers, public transportation stations and sports event venues. In second place came the EcoWater project, by José Meliço, which contributes to a double savings of water and energy
in homes, gymnasiums and hotels. This system recovers water that normally is wasted - the output from taps while water is heating - and indirectly saves energy by reducing the amount of water requiring collection, treatment and distribution. It is estimated that while waiting for the water to heat in the shower to a desired temperature, we waste about 6 liters (1.5 gallons) of water on average, the equivalent of approximately 60 million gallons (227 million liters) of water wasted daily just in Portugal. For the 2011 edition, we expect more great news, especially given the new idea of preselecting competitors, such as the prototypes from FabLab, known for their inventions at EDP. More information can be found at http://openspace.edp.pt/FablabEDP o n 19
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market E D P B u s i n e ss e s
Results are reaching their target During the first nine months of the year, profits grew by 4 percent to 777 million euros, approximating the 1 billion euros mark expected by EDP at the end of 2010
“
I
n a very challenging year, we once again present the best results," said EDP’s president, Antonio Mexia, about the 4 percent rise in profits for the first nine months of the year. The impressive figure was driven by the Group's growth in Brazil and its increased presence in the wind-power market. EBITDA rose 9.2 percent to 2,651 million euros, with 86 percent originating from regulated and contracted longterm activities. Earnings before depreciation and amortization were supported by 28 percent growth in Brazil, which was driven by the Real appreciation of 22 percent, a recovery of demand, and the positive impact of annual tariff adjustments done by Bandeirantes and Escelsa. "The weight of the operating results outside Portugal rose to 53 percent. The globalization strategy was important for this rise," explained Mexia. The 28 percent increase in wind activity was
supported by a higher installed capacity, a 2 percent higher average selling price, and a 12 percent increase in regulated networks, which was driven by gas regulated activities. Toward the end of this year, EDP estimated contracted
sales of 29 TWh, representing 38 percent growth over the course of 2009. For next year, the company has already contracted more than 12 TWh of electricity sales, or about 65 percent of the expected production, with prices and margins in line with the ones contracted for 2010. During the first nine months of the year, EDP's consolidated installed capacity grew by 11 percent. CEO Antonio Mexia expects to close 2010 with record results, and the numbers are approaching that expectation. In September 2010, EDP had a very comfortable liquidity position, close to 3.9 billion euros, which should cover the expected financing needs until 2012. In October 2010, Standard & Poor's maintained its rating of EDP following the decision taken by the two other top rating companies (Moody's and Fitch) in June and July of this year.
3rd-quarter results
4% Net profit
9%
2%
7%
EBITDA
Operational results
Operating costs
9% Gross margin
16% Net debt*
*Compared with the amount at 2009 year’s end
14% Liberalization Activities (Iberian Peninsula) 24% Contracted Production (Iberian Peninsula)
25% Regulated Energy Networks (Iberian Peninsula) 14% Actividades Liberalização (P. Ibérica)
25% Redes Energia Regulada (P. Ibérica)
18% Wind
24% Produção Contratada (P. Ibérica) 18% Eólica 19% Brasil
19% Brazil 20 o n
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m a r ke t
Naturgas Energía even more EDP By 2012, EDP will acquire 95 percent of Naturgas through HC Energía in a phased acquisition. The agreement involves the purchase from EVE (Ente Vasco de la Energía), of 25.35 percent of the company and 4.08 percent from the Ayuntamiento de Donostia-San Sebastian. This is a 29.43 percent acquisition of 617 million euros. The Basque government will maintain a 5 percent stake through EVE and will have a representative on the board of directors. By 2016, it will also obtain some rights, such as maintaining the headquarters in the Basque Country and having the veto
on possible divestitures. The purchase will take place in three phases: the first, refers to the purchase of 9.43 percent of capital, valued at 197.7 million euros, still to be made this year; the acquisition of 10 percent of the shares (209,650,000 euros), in the second half of 2011; and finally the acquisition of another 10 percent of the shares (209,650,000 euros) in the second half of 2012. With this transaction, the Basque government will complete the privatization process of the gas operator, which started in 2003 in accordance with deadlines previously established.
Bergara-Irun The strategic supplier On Oct. 15, 2010, Naturgas Energía inaugurated the BergaraIrun pipeline in Spain, the longest stretch of the project opened by the company to date. At 90 miles long, the section represents an investment of 70 million euros, as the project has been under way for about three years. The official inauguration of the infrastructure was overseen by Bernabé Unda, counselor for industry, innovation, trade and tourism for the Basque government, in a ceremony attended by Pedro Luis Marín, secretary-general for energy at the Ministry of Industry, Tourism and Trade; María Teresa Costa, president of the National Energy Commission; João Manso Neto, chair-
man of EDP Gas; and Manuel Menendez and Fernando Bergasa, president and director-general, respectively of Naturgas Energía. This strategic infrastructure project was built to ensure an energy supply at Guipúzcoa and to improve the gas exchange network between the Iberian Peninsula and the rest of Europe. The Euskadour second stage of the pipeline, linking the networks of Naturgas Energía to French TIGF (Total Infrastructures Gaz France), is next. During this stage, Naturgas is focusing special attention to environmental issues, using for instance 370,000 m2 of reforested land - the equivalent of more than 60 soccer fields.
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The Customer: at the center of our attention! Energy marketing and innovation in products and services were the major areas discussed at a meeting called "The EDP Customer Experience" held in late September 2010. Organized by the Department of Customer Relations, this meeting brought together company areas and units that place the client at the center of their work, creating space for sharing both knowledge and projects and initiatives that make for a more positive customer experience Innovating in costumer relations
New realities are requiring EDP to bring innovation to products and customer service on a consistent basis through online relationships, producer-consumer and intelligence networks, and the full deregulation of the market. According to Cruz Morais, director of EDP and chairman of EDP Commercial, this innovation is reflected not only in terms of price, but also customer relations (e.g, text messaging and e-invoices) to ensure the retention and growth of the company's existing client base. EDP is mindful still of the urgent need to reduce greenhouse gas emissions in order to cope with the disappearance of carbon from the atmosphere. To tackle this challenge, EDP is acting on various fronts, namely and 22 o n
primarily by promoting energy efficiency. This effort will be shared in equal measure by the company's residential, business/industrial and transportation sectors. "We are betting on two fronts: services that already exist in the market today and ... services for photovoltaic, microgeneration and minigeneration services for energy certification and company audits, and even technical support services for the customer at both home and the workplace. This year, we will also launch a range of transportation-related services, including solutions for the charging of electric vehicles," said Filipe Santos of EDP Services. The truth is that the energy paradigm is changing by leaps and bounds, and soon we will have new cities that can create and use cleaner energy. "It's this important task that
we are doing in InovCity. It's a platform that will serve almost as a laboratory over the next few years as we test new products and services," said Miguel Stilwell d'Andrade of EDP Distribution. But innovation is not unique to services. It also involves a more modern online relationship and more efficient contact management. According to Manuela Silva of EDP Commercial, "We have two major objectives: reducing costs and minimizing materials. People are going to fewer stores and agents, and they have less time on their hands. They need EDP to have a more modern, speedy and efficient relationship with them. Then there is the issue of contact management, which has to do with how we treat customer complaints and requests for information."
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market
1M calls answered in 2009
HC Energía with the Best Customer Care Center The customer service center of HC Energía was given the “2010 Client Experience” award in the energy sector for the sixth consecutive year. The award was presented by the Spanish Specialist Association in Customer Contact Centers in collaboration with Izo System.
The award recognizes companies with the best customer service. The HC Energy Center for Customer Service recorded about 1 million calls answered over the last year. The award recognizes the company's commitment over the last 10 years to provide excellent customer service.
EDP SERVICES OFFERS TRANSFORMATION STATION
The core of business
The challenges are enormous in energy marketing. For this reason, sharing and exchanging experiences within the Group is vital. "It is especially important to share ideas between all of the Group's companies, to exchange experiences, and, above all, to consider the concerns and needs of the customers,” says John Aguiar of EDP Universal Services. And what does the customer want? "Essentially they want EDP to be there, whenever and wherever it's needed, offering products and services tailored to their needs. They also hope for a good relationship, reasonable prices, and above all, for confidence in our commitment which are already assets of EDP," adds Paula Pinto da Fonseca. Another change looms in the very short term: the end of regulated fees for electricity sales to final customers of very high, high, medium and low voltage. It starts January 2011. According to Paulo Pinto de Almeida of EDP Commercial, the free market will bring more stability and transparency but also more competition. "With the end of fees on the horizon, we are strengthening our operation for customers of lower segments and also because, again,
there is a large push to build relationships with B2B customers, promote one-to-one marketing, and customize service and contracts. This is a new year," he stresses. According to Massimo Rossini of EDP Gas, EDP's gas objectives in Portugal are to continue to grow and serve customers well. "It is worth remembering that an EDP gas customer is a satisfied customer. We must continue to compete in the market industry in order to improve our position by continuing to provide energy and greater competitiveness for the national industry," he argues. For António Mexia, president of CAE, "what is happening in the market is a set of forces, events and changes that make it much more important to have the sense of urgency with which EDP acts to resolve what people seek. It is necessary we put ourselves in our customers' shoes – from industries, to homes, in Portugal, in Spain, in Brazil – adopting an open company." And it is in these forces and changes that EDP stakes its claim and is particularly attentive. It will certainly be a challenging future for the Group on all levels, but it's nothing that a company without barriers, and with a global vision strategy, isn't already familiar with.
Raising the Voltage Level is a solution offered by EDP Services to improve quality of service and reduce electric energy costs. The provision of this service follows the completion of a study of the technical conditions for electricity installation and consists of several solutions, such as a supply of transformation stations (PTs) and the construction of a substation. The client, Lavandaria Araújo and Rosa Costa, of Armação de Pêra, wanted to employ the voltage-raising service, to move from the special low-voltage (BTE) level to the medium-voltage (MV) level. Costa found that EDP Services offered the best deal for her financial needs without sacrificing quality. The solution, provided by EDP Services through its network of agents, was the supplying of a concrete box, MCBA-1T-4250- 2P, through the implementation of electric connections in the interior (cells and transformer) and through the connection between the MT airline and the 400 kVA transformer, conducted by Olhelectro, the jobs were performed within one week in June, with the customer connected to MV on Oct. 19. The client has needs and EDP Services delivers! o n 23
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causes
edp
Economic and social commitment
Solidarity schools already in the field
T
he Energy With Life (Energia com vida) project, from EDP Gas, started last September. The first edition is destined to public or private middle and high schools up to the ninth grade, in the Portuguese districts of Porto, Braga and Viana do Castelo. The organizers hope to grow the project in the future in terms of its geographic scope and the level of education. The concept behind the "Through the youth, through the schools, with the community" is to teach and motivate young people to help those in need and give them the unique opportunity to reach adulthood feeling as if they've seen social problems and acted. At the schools a continuous solidarity- educational matrix will be created, bridging the community with existing social welfare institutions and generating live platforms for knowledge exchange and
At year's end the Solidarity Schools for 2010/11 will be determined. The winners of the award will be those who try to solve or minimize the problems encountered in their surrounding areas. local intervention. The Energy With Life project challenges the school community and its families to embrace this commitment to act, with a sustainable intervention methodology that can be adapted to fit each locality. Project participants will act in such areas as "poverty and hunger," "living with differences," "serious illnesses," "unemployment," "senior population," "illiteracy," "environmental sustainability" and "global partnership for human development." During the academic year, the school teams will be challenged to identify the real issues affecting their surrounding areas (including the school itself) in order to solve or minimize those problems. At year's end, the Solidarity Schools of 2010/11 will be determined. You can follow this project and learn more about it at www.energiacomvida.org and on Facebook, Twitter, Hi5 social networks. 24 o n
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edp causes
220 thousand euros
153 thousand beneficiaries
EDP Solidarity Dams helps nine new projects An environmentally friendly laundry to promote social inclusion in the county of Vila Velha de Ródão; therapeutic workshops to develop the sensory abilities of young people with mental disabilities in Mirandela; a commercial project to combat desertification in the region of Beira Interior - these are just three of nine projects selected by the 2010 EDP Solidarity Dams program, which will receive more than 220,000 euros in monetary support. The winners were announced at a ceremony that took place Nov. 8, 2010, at the prefecture of Vila Real. In this second round of the program, 46 projects applied with the intention of reaching more than 153,000 direct beneficiaries.
Solidarity Energy
Pink October The fight against breast cancer has another ally in Brazil. EDP has joined the Pink October initiative, with the towers of EDP Escelsa and the electricity bills of EDP Bandeirante gaining a new color
his year, EDP Brazil joined the Pink October campaign, organized by Femama (the Brazilian Federation of Philanthropic Institutions for the Support of Breast Health), in the fight against breast cancer. Consequently, EDP has scheduled a number of external and internal activities to raise awareness of breast cancer and the importance of early detection.
T
Even in times of crisis, HC Energía’s team members support their colleagues. A good example is their collaboration in the project EDP launched in the Republic of Benin, in West Africa. As part of their participation, the team members have donated a day's wages, or another amount they consider appropriate, to fund the electrification of a village in the country. The supply of electricity to populations in Benin with fewer resources is the main goal of this joint action, which involves HC Energía, the HC Energía Foundation and Energía sin Fronteras, as well as the local inhabitants themselves, who also have invested their time and energy in the project. The team's participation in such corporate social responsibility initiatives is crucial. Indeed, the success of the project will depend to a large extent on the cooperation and generosity of the company’s team members. The HC Energía Foundation plays a major role here, as it doubles the amount donated by each team member to make this project a reality.
In a symbolic nod to the name of the campaign, distributor EDP Bandeirante changed the color of their customers electricity bills to pink, and the towers of EDP Escelsa, an electricity distributor in Morro Jesus de Nazareth, were also illuminated in pink. In addition, the Web sites of EDP, EDP Institute, EDP Bandeirante, EDP Escelsa and the ON bulletin also honored the project by coloring their layout in pink.
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The year 2010 was devoted to biodiversity. For its part, EDP has made a ommitment to reduce the loss of species and their habitats. Learn how the Group has been fulfilling its mission.
i od
Bi
e
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he term biodiversity describes the richness and variety of the natural world. It is not known exactly how many species of plants and animals exist in the world. Estimates range from 10 to 50 million, but until now scientists have only classified and named 1.5 million species. Pollution, overuse of natural resources, expansion of the agricultural frontier at the expense of natural habitats, and urban and industrial sprawl are putting at risk the extinction of many plant and animal species. The General Assembly of the United Nations declared 2010 the International Year of Biodiversity, to raise awareness about the importance of preserving plant and animal species worldwide. This initiative aims to emphasize the importance of biodiversity to our quality of life, reflect on the efforts already undertaken to safeguard the diverse life-forms on our planet, and promote and foster all work-related initiatives that help reduce the loss of biodiversity. Protecting biodiversity requires that the entire global community work together to ensure a sustainable future for all. We will only achieve a reduction in species loss as well as resources and raw materials if all members of society, including the private sector, contribute to solving the problem. The question that immediately arises is how then to combine economic development with the protection of ecosystems? The answer is easy: through sustainability. Access to electricity is, for example, seen as key to reducing poverty. Today, approximately 1.6 billion people live without electricity worldwide. In the future, a large percentage of them gain access to energy, but this development will have a direct or indirect impact on the surrounding biodiversity, in terms of the occupation or degradation of the ecosystem, weakening of soil or water pollution.
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At EDP, biodiversity is an important management variable. The Group's business strategy has tended to focus on growth from renewable energies, particularly from wind and water. By 2020, it intends to achieve an additional 3.5 GW of installed hydropower and more than 274 GW of installed wind energy capacity. This management variable stems essentially from the following objectives: - Controlling the operational risks that result from the increasing legal and regulatory framework concerning biodiversity protection and from the social pressure associated with the construction of new projects; - Safeguarding company’s position in markets geographically located in areas of extreme sensitivity, namely Brazil, where the adoption of policies and initiatives specifically aimed to protect biodiversity assume particular importance in the context of managing environmental projects; - Maintaining a reputation of trust and credibility with key stakeholders and assuming a leading and proactive role in the protection of biodiversity.
Hydroelectric Production The construction of new hydroelectric plants, mainly using reservoirs, leads to the flooding of fields that have various types of usage. The irreversible suppression of high ecological value riparian galleries, and the consequential habitat fragmentation and alteration of the flow regimes, are the most significant impacts. In the reservoir area the lotic systems (running waters) are replaced by lentic systems (still waters), which leads to a readjustment of the resident species. Along the stretch of river where the dam was built, migratory fish species usually are
the most affected. In this sense, EDP promotes a series of measures for new ecosystems equilibrium, taking advantage of favorable conditions for some of the species. It also promotes a set of compensatory measures, such as, the recovery of degraded water lines, the improvement of the quality of neighboring habitats or the artificial spawning and the recovery of downstream water lines. EDP has fish ladders in many plants, and also promotes compensatory measures associated with migratory species
Thermoelectric Production With about 8,000 MW of installed thermal generation capacity (coal, fuel oil and natural gas), the raw materials extraction phase can lead to significant habitat degradation, whether we speak in terms of acidifying gas emissions or emissions from the cooling waters process to the hydro surroundings. EDP assumed its commitment to reduce CO2 emissions by 70 percent in 2020,
compared to its 2005 figures, which can be obtained by reducing the consumption of electricity from fossil fuels. At the same time, EDP has chosen to use fuels with a lower concentration of sulfur and to implement denitrification and desulfurization systems for emissions. The cooling towers, which already exist at the plants with a new combined cycle, also help mitigate the impacts.
Wind Production The impact of wind energy production on biodiversity is localalized and reduced. However, EDP gives the issue special attention, since wind energy is considered to be a booming business. Carrying out feasibility and environmental impact assessments and other specific studies on avifauna, etc., in the early stage of projects, enables EDP to select the
correct location for its wind farms and thus minimize future environmental damages. EDP conducts monitoring studies on birds and bats colliding with the blades of wind turbines, an example of the project's most direct impact on the environment, and promotes compensatory measures to limit indiscriminate access, which can disturb sensitive species and habitats.
Electricity Distribution The expansion of electricity distribution networks depends heavily on urban planning. As more construction takes place within areas afforded nature protection status, it also increases the number of lines that will be built in those regions. On the Iberian Peninsula, the main impacts
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result from the collision and electrocution of birds with power lines. In other areas, these impacts extend to additional wildlife species, such as the white-faced sagui monkey, in Brazil. The need to manage vegetation growing along the protected areas for the distribution lines requires
periodic cuts of the foliage. To minimize its impacts, EDP implements measures such as routes diversion, use of insulated cables, placement of warning signs for the lines, among others. It also promotes the isolation of aerial electricity distribution lines.
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COSTS AND INVESTMENTS IN BIODIVERSITY In recent years, EDP has been making an effort to differentiate its environmental expenditures, breaking them down by category. Today, it is possible to see the costs and annual investments associated with the Group's commitment to biodiversity protection.
INVESTMENTS Portugal Spain Brazil COSTS Portugal Spain Brazil
2009 16,150 7,374 1,238 7,538 2,765 1,337 773 655
2008 20,555 14,923 915 4,717 1,394 352 812 230
2007 8,238 3,355 1,035 3,848 696 423 57 216
(Unit: thousand euros) Note: The cost of protecting the biodiversity and landscape in the U.S. are not yet dissociated from the remaining environmental issues.
EDP Fund for Biodiversity The EDP Biodiversity Fund, established in 2007, supports projects related to the promotion and recovery of biodiversity. Private or public nonprofit, scientific or higher-education institutions that show technical expertise in the field of nature conservation may apply for the fund, which will contribute 500,000 euros annually to combat biodiversity loss until 2011. With the establishment of this fund, EDP aims to increase knowledge of the different scientific aspects of biodiversity, optimize conservation and improve the dynamic of ecosystems, placing special emphasis on fields with more relevance
to the development of its activities and focusing on the regions where it operates. The 2010 edition jury was chaired by João Ferreira do Amaral, professor at ISEG (School of Economics and Management) and chairman of EDP’s Environment and Sustainability Council; Maria do Rosario Partidario, professor at IST (School of Engineering, Science, Technology and Architecture) and an expert in strategic environmental assessments; Francisco Sanchez,of the EDP Foundation; Luis Filipe Manuel, manager of EDP Innovation; and Antonio Neves Carvalho, director of EDP’s Sustainability and Environment
Office. In this third edition, conservation projects were awarded to four different entities: the Portuguese Society for the Study of Birds (SPEA - study of habits of migratory birds), Institute of Agronomy (study of trees along the river banks), Center of Marine Sciences of Algarve (CCMAR - study of sea bottom forests) and Frauga Association for the Integrated Development of Picote (studies on the usages and knowledge associated with species from the International Douro Natural Park). The winners will share the 500,000 euros in funding. on 29
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10+
in focus
Water • Billions of people, particularly in developing countries, get the water they drink directly from rivers, lakes, springs and swamps.
Rich in bio-capacity
Sixty percent of the planet's regenerative capacity is found within the borders of just 10 countries: Brazil, China, United States, Russia, India, Canada, Australia, Indonesia, Argentina and France.
• In 1995, approximately 1.8 billion people lived in areas with severe water stress.
SOS Planet
• It is estimated that by 2050 about two-thirds of the world's population 5.5 billion people - will live in conditions of moderate to severe water stress.
Forests • Forests account for 90 percent of terrestrial biodiversity, store carbon, help to regulate the climate, reduce the impact of flooding and purify water. • Deforestation accounts for 15 percent of greenhouse gases emitted by human activity.
Portugal Portugal spends almost four times more environmental resources than it has available. • Portugal’s average ecological footprint per capita: 4.5 hectares. • Bio-capacity (a measure of regenerative capacity, with the possibility of mitigating CO2 emissions or generating resources capable of suppressing the consumption): 1.3 hectares per person. • Portugal occupies 39th place among the biggest destroyers of the planet.
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• In terms of bio-capacity, Portugal ranks 85th among 126 countries, below the European average. • Portugal consumes more environmental resources than it is able to produce. In addition, it is the sixth country in the world in terms of water consumption per capita, consuming 6,000 liters per day and per inhabitant.
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in focus
Ocean • Nearly 3 billion people worldwide get 15 percent of the animal protein in their diet from fish. • The stocks of the 10 most fished species are heavily exploited, complicating the recovery process in the near future. • In 2007, 28 percent of monitored marine stocks were overexploited, depleted or recovering from depletion. • Seventy percent of commercial ocean fish is threatened today. • As with cod, stocks of Northern blue fin tuna are already on the verge of collapse in the Mediterranean. • From 1970 to 2007, the Marine Living Planet Index fell 24 percent. The index, an indicator of the evolution of marine life, follows 2,023 populations of 636 species of fish, seabirds, turtles and marine mammals.
World population • 3.5 billion people live in urban areas. • By 2050, 6.3 billion people are forecasted to live in urban areas, and the world's population will reach 9 billion. • 80 percent of CO2 global emissions are produced in cities.
Five commandments for increasing quality of life on the planet without harming Mother Earth. 1. Change consumption patterns. The way we eat and the energy we use have a direct impact on the carbon we emit. 2. Create protected areas, prevent deforestation, preserve water courses and control fishing. 3. Invest in energy-efficient building and forms of transportation with low power consumption 4. Plan and manage the soil rationally. 5. The failure of the climate change summit in Copenhagen illustrated that it is much easier to say than to do, especially at the governmental level. A report from the World Wildlife Fund estimates that at the current rate of natural resource consumption, humans will need the equivalent of two planet Earths by 2030. By 2050, we will need almost three.
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QUIZ EDP and Biodiversity PORTUGAL 1 - EDP Gas has partnered with the National Association of Forestry, Agriculture and Environment Businesses (ANEFA), under the Pronatura project. The partnership aims to promote the reforestation of burned areas with native species, thereby safeguarding biodiversity in Portugal's forests. How many trees does EDP plan to plant in the Caminhã municipality? a) 500 b) 1,000 c) 2,000
3 - The construction of the new Baixo Sabor hydroelectric plant, in an ecologically sensitive, was preceded by a complex environmental impact assessment. With that, EDP established a voluntary scientific assessor partnership for the entire process, to ensure and maximize the ecological effectiveness of the measures to be implemented on the ground. With what group did EDP partner on this project? a) Research Center for Biodiversity and Genetic Resources (CIBIO) b) Institute of Nature Conservation and Biodiversity (ICNB) c) League for the Protection of Nature (LPN)
4 - Since 1996, EDP has had 1,000 m2 of greenhouses in the Setubal thermal station. The greenhouses are optimized for the production of autochthonous species, some of which have protected status. The outcomes showed that global warming caused an increase in the plant growth rates by 30 percent more than unheated greenhouse. How many plants per year can the Setubal greenhouse produce? a) 100,000 b) 50,000 c) 75,000 2 - Since 2003, EDP has maintained a partnership with Quercus and the Portuguese Society for the Study of Birds (SPEA), which aims to promote a balance between the quality of technical service and the protection of species, in particular birds who collide with and sometimes are electrocuted by the electricity distribution lines. What is this partnership called? a) Ecological Corridors b) Protocol Avifauna c) Operation Protected Habitats 32 on
5 - Through its biodiversity fund, EDP has supported various initiatives under the business and biodiversity commitment, totaling 2.5 million euros over a period of five years. Among these initiatives is the Emergency Recovery Plan of three Rupícola bird species at the International Douro Natural Park. What birds are we talking about? a) Apus melba (Andorinhão-real), Pyrrhocorax pyrrhocorax (Gralha-de-bicovermelho) and Gyps fulvous (Grifo) b) Bubo Bubo( Bufo Real), Falco peregrinus (Falcao Peregrino) and Neophron percnopterus (Britango) c) Hieraaetus fasciatus (Aguia de Bonelli), Egyptian Vulture (Abutre do Egipto) and Ciconia Nigra (Cegonha Preta)
SPAIN 6 - Each new client and invoice of HC Energía translates into the company's environment commitment. Thus, customers and the HC Energía Foundation have already planted more than 30,000 different trees at various locations around Asturias. What is the name of this initiative? a) “Un client, un árbol " (One client, one tree) b) "Viva la floresta " (Live the forest) c) "Facturas ecologicas” (Ecological invoices) 7 - Naturgas Energia expects to plant, in the coming months, more than 13,000 trees in two different forest sites, in Mendibil (Alava) and in the Aiako Harria Natural Park (Gipuzkoa), provided by the forest entities. The trees are native species and will be chosen depending on their better adaptation to the grounds. What is the size of the sites? a) 4 hectares b) 7 hectares c) 10 hectares
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in focus
14 - What kind of terrestrial mammal, which is endemic to the coast of Rio Grande do Sul,and lives in burrows in the sand, is being protected during the construction of the Tramandaí wind farm? a) Cuíca-Lanosa (Caluromys philander) b) White Tuco-Tuco (Ctenomys flamarioni) c) Tamandua-Mirim (Tamandua tetradactyla)
RENEWABLES 15 - EDP Renewables is developing a project to monitor and track diurnal birds of prey in Catalonia. What type of bird of prey is this project oriented toward? a) Real eagle b) Aguia perdicera (Hieraaetus fasciatus) c) Marbled duck
10 - To ensure the conservation of biodiversity, HC Energía created the first river lift in the Asturias region. It is one way to help the fish passing through the company’s station to overcome the obstacle and follow the river's natural course. Where is it installed? a) Taverga b) Tejo c) Huebra
11 - The Econnosco program strives to preserve human resources. During one event in 2010 for team members' children, which used environmental awareness materials to talk about waste with the internal audience and the development of sustainability projects by the ambassadors of Econnosco, what was the amount spent on the implementation of selective battery and residues collection points? a) 500,000 reales b) 20,000 reales c) 100,000 reales
12 - What's the name of the initiative included in EDP's school-based program, which had as its theme, "Biodiversity: how many different lives!" and which involved students jointly producing a newspaper? Thecompetition took place in São Paulo, Espírito Santo, Tocantins, Santa Catarina and Rio Grande do Sul states; involved about 7,000 students; and created 950 jobs. a) Art With Energy b) Live Our Energy c) Environment Is Life
13 - The project to re-use rainwater for the irrigation of gardens and orchards, in the southern region of EDP Escelsa, was performed in what municipality? a) "Cachoeiro de Macaé" b) "Cachoeiro de Ubatuba" c) "Cachoeiro de Itapemirim"
17 - Hundreds of thousands of birds of prey cross Europe and Africa every year, with the Strait of Gibraltar acting as an area of concentration and key point of obligatory passage. Having this region as an area for abundant numbers of migratory birds provides crucial information for management on the conservation of migratory birds of prey. What type of tool is used? a) Put washers b) Publication of a guide c) Installation of an information panel
Solutions
9 - What kind of fauna and its habitat in Asturias has been protected by the HC Energia Foundation? a) Brown Bear b) Deer c) Bat
BRAZIL
1-c, 2-b, 3-a, 4-a, 5-c, 6-a, 7-b, 8-b, 9-a, 10-a, 11-c, 12-a, 13-c, 14-b, 15-a, 16-c, 17-a
8 - River Nalon received new residents to repopulate the waters. The HC Energía Foundation gave more than 100,000 brown trout fry, in collaboration with the Nalón Friendly Fishermen Association. Students from Elena Sanchez Tamargo public school in Pola de Laviana, contributed to the fry’s release in the river waters. The project hopes to instill among students from Asturias a sense of responsibility for the environment and the need to protect biodiversity. What kind of fish are we talking about? a) Carp b) Trout c) Bass
16 - Through its commitments policy, EDPR North America demonstrates its respect for wildlife and its habitats. In this sense, the company has already spent millions of dollars on studies to understand better and reduce the potential impacts of wind farms. How many studies did it launch, in 11 states, during 2010? a) 7 b) 12 c) 18
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Who's Who Cirque du Soleil's Director of Creation
LYN HEWARD yn Heward has been with Cirque du Soleil for 18 years and has never felt the flame diminish. In this interview, she explains why and shares some tips for keeping creativity and job satisfaction high.
L
You have been with Cirque du Soleil for many years. How do you keep the "flame" lit?
Always doing things differently. I was lucky by always with the Cirque. They allowed me to advance a lot. It's the ideal setting for any person: to enter a position and the company allow the employee to evolve, have by always doing new things. Every two years I was given a different job. When some people (and this has happened a few ti-
our people inside the company as well as for our consumers outside. We know wha viewers expect of us, but to give them that, we must provide the same to our employees by invoking their emotions, provoking their senses and evoking their imaginations. Our mantra is all about personal growth and achievement. Despite being part of a team and always talking about the team we want, each of us within the Cirque deserves our own space. Our mantra is also linked to our social role in the greater community, which is and always has been to work with disadvantaged or marginalized youth. And this became very important for Cirque, to the point of having some of our
"Creativity takes practice" On Oct. 11, the Electricity Museum in Lisbon hosted the 2010 Happy Conference, an initiative aimed at more than 100 members of the School of Development Executives at EDP University. The participants engaged in talks about creativity, talent and innovation, all considered critical factors to personal and professional success. Overall conclusion: It was very inspiring to link up Cirque du Soleil with EDP mes in recent years) come to me and say, "I'm so satisfied because I’ve advanced in the company, but I'm not happy doing my job,"and ask me what to do, I reply: "Do what you like, even if it means going to meet with the artists on a Friday at the end of the afternoon. Your work is important, but you have to feel happy and healthy doing it. "Do you know what I missed most when I became president of the Creative Content Division? Working with the artists.” What is the company’s "mantra"?
The key is to evoke the imagination, provoke the senses and invoke emotions. Originally, it was written as the internal motto of the company. It was what we used to motivate people in the company. Then it became the our statement to the outside. This mission has social significance for 34 o n
coachesworking on outside projects, which brings much inspiration to the company. It's something that every Cirque employee has to do: participate in this social mission by contributing a percentage of his/her salary to this program. They each have their mission in life but also have their mission here at Cirque. How do you define creativity?
First, creativity is distinct from innovation. I do not talk too much about innovation, because what makes me tick is the fact that people can increasingly become more creative in their lives. Creativity begins with inspiration, intuition and our ability to see old things in new ways and carry this all into the way we live. These are not character istics that can only be found at the office. Creativity takes practice, like reading a book or
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Cirque du Soleil's Director of Creation Who's Who
How is it possible to keep an old product new?
It’s not as easy as we think. One good thing is that our product is alive. It's not like butter or a car. And about butter, we always have the same expectations ("Will I get fat?"); with a car we have others ("Will it drive me to work? "). But when we deal with a “live” product, it is something that is constantly changing. Even in a perfect world, people change. Then, in our case, there are other factors, such as the need to relocate a
show, or when someone can’t perform because of an injury or sickness and suddenly a replacement has to step in. The show changes because we can make strategic changes, but it also changes because people change. Every time we bring a new person to the show, suddenly it becomes different, and despite wanting our shows to be coherent, we need to leave room for them to grow... How does the recruitment process at the Cirque work?
At Cirque we do not recruit or use "talent identification" in the traditional way. Our casting department — the new Creative Synergy Division — has two distinct commandments: scour the globe for ideas and inspiration, which become the main force of our creative process, and "always walk
around with a fishing rod" to discover individual talent that will ensure the creative and artistic wealth, as well as the longevity, of our shows. Our treasure hunters are looking for the most precious pearls. The casting process is a two-way chain. The company has its basic needs; the candidate presents his or her bid. Of course, as in any business, for each position, we look for certain qualities and skills. However, we seek the added value of potential plus a little "craziness" — something extraordinary that will help us push the limits of what we want to accomplish and craft that individual into someone unique and genuine to our creative process. We maintain a database of more than 20,000 people, which is updated regularly, and we organize private auditions, and nev
doing calculations. We have to go Basically, it arises from what we feel, the experiences that we live and the world around us. The creative flame leads to the reinvention of the every day in order to conquer the future.
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Who's Who Cirque du Soleil's Director of Creation
HAPPY EDP CONFERENCE 2010 On Oct.11, the Electricity Museum in Lisbon hosted the 2010 Happy Conference, a gathering in which EDP personnel spoke about creativity, talent and innovation, all factors considered critical for personal and professional success. The meeting, which was attended by 130 participants, featured Lyn Heward, current director of creation for Cirque du Soleil and former president and chief operating officer of the Creative Content Division, as speaker. Throughout her professional life, Heward has achieved a vast wealth of knowledge in terms of talent, creativity and innovation that has been the genesis of Cirque du Soleil’s great shows, and today she is an expert in that area. Heward bases her presentations on her experience, showing how creativity is present in each of us and should be part of everything we do. "I believe that when we are born, we are born to be creative and intelligent," she says. Her lectures include a series of practical advice on developing talent; creativity; the ability to take risk; leadership; teamwork; and a strong, dynamic and successful organizational culture.
36 o n
During the Happy Conference, Heyward took the participants behind the scenes of one of the biggest shows in the world to explore the nature of creativity and innovation. The conference participants also received a copy of her book, The Spark: Igniting the Creative Fire, which invites readers to enter the world and ideas of Cirque du Soleil through the story of an ordinary man who seeks meaning in his work and life. This inspiring story, told through behind-the-scenes episodes, involves the most creative and innovative people in the world of entertainment. According to Heward, The Spark "is a manual" containing three main messages: we all have the potential for creativity within us; we all have a great potential for teamwork (if we are placed in a strong team, we evolve more quickly and are more creative and productive); and we all have creativity around us, right in front of us — we just need to be aware." As Lyn explains, "There is no formula for creative success; every one of us has to turn the power key of our imagination in our own way."
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Cirque du Soleil's Director of Creation Who's Who
ver in-group. The private auditions intend to discover the hidden talents and to assess individual potential. What is the secret to keeping employees motivated?
Oh boy! ... There are many ways. I think the most important thing at the Cirque is to keep staff members very close to the product. We have a wonderful training studio, in Montreal, originally built in the shape of a ship, to remind us that we are constantly traveling into the unknown. The studio was built in the middle of a landfill. It's true. We bought 3 million square meters of property near Montreal’s City Hall, because it was very inexpensive. Since 1996, we have rehabilitated the grounds, building the ship that looks like a Portuguese caravel from the Discoveries period. Over the past 10 years, the space has grown exponentially. It reminds us, that every day, we are on a journey to discover new shows, themes and people, and that our responsibility is to cover the entire world. What do you in that space?
We do several different things; for example, on Fridays in the late afternoon, we meet
sionary is one who guides us in any direction we might go with the new show, providing ideas for making strategic decisions (such as whether a show will take place in a theater or an area, include tourneys, or go to South Africa or China), or who works as a creative director in terms of deciding what the content of the show will be. Then we have people who are guides, and next we have the wonderful vice presidents, who are there to ensure the organizational structure that supports the creative process and the distribution process of our business. There are two sides: We create and maintain the shows for a very, very long time. Shows like Mystere have been in Las Vegas since 1993. This involves having a huge support staff. Yes, we continue to support the artists onstage, but who will sell the tickets, do the marketing of the show, provide the technicians, etc.. I would say there is a healthy balance between maintaining the creativity advantage and the business advantage. What is the importance of having an outside perspective on the process?
Since our product is a live product, we always have an outside perspective. This means that we must always be alert and
Something that works well in Japan may not necessarily work well in Canada. When we work for different markets, we must be aware of this and know what their expectations are — not making radical changes but assuming the changes that are necessary the new artists, who have been practicing performances that will be shown to an audience of 18,000 people. Why do we do this? So that people can feel close to the product. In Montreal, we only have new shows every two years. And our employees have to wait that long for a new show, but they themselves can be part of the show just by therapists does she mean "physical therapists"? If so, I would put "physical" in brackets before therapist therapists, coaches or the accountant ... All of them contribute to the product’s evolution in some way. So, this is how we thank them for their collaboration. What is the importance of the chiefs in the leadership of ideas?
We do not use the term "boss". There are certainly people who "boss around", but we call them creative directors and guides. A vi-
watch and listen to the audience. It does not mean we have to make major changes to the shows, but we must take into account the different cultural sensitivities. One thing that works well in Japan may not necessarily work well in Canada. When we work for different markets, we must be aware of this and know what their "expectations are — not making radical changes but assuming the changes that are necessary.".
Seven Doors According to Lyn, these "doors" reveal the seven essential strategies for success: 1st door Grab creative opportunities as they arise. 2st door Awaken the senses and dare to experiment. 3st door See beyond the obvious: the creative transformation. 4st door Nurture an environment that is conducive to innovation. 5st door See obstacles as challenges to move further. 6st door Taking risks is part of the creative process. 7st door Be attentive to the people you work with: A creative leader never loses sight of the potential of the staff with whom he or she works. Because creativity and innovation are essential to success in business and in many other facets of our lives, it is up to each of us to open the right doors.
Are there Portuguese artists at Cirque du Soleil?
Two of the oldest artists in the company, since the premiere of Saltimbanco, in 1992, are the Portuguese Lorador Brothers. Currently, they are on in Mystere. Their family has been in the circus business for many years. But, We also have Portuguese clowns and other people who sing and dance. o n 37
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in debate CARLOS ZORRINHO · University Professor and Secretary of State for Energy and Innovation
Competitiveness with Energy Portugal has made energy one of its strategic commitment areas to increase the competitiveness of its economy. But to what extent and how?
P
ortugal has made energy one of its strategic commitment areas to increase the competitiveness of its economy, by reducing energy dependence, cutting back on imports of fossil fuels and and creating industrial clusters via the development and com38 on
mercialization of solutions related to renewable energy, energy efficiency and smart grids. This bet has been successful. Today, Portugal has one of the most intelligent, green and inclusive energy policies in the world. In the first half of 2010, more than 60 percent
of electricity (and about 25 percent of total energy) consumed in Portugal came from indigenous and renewable sources, generating a reduction in the cost of imports of around 500 million euros. The success of this policy stems from a choice turned into a mobilizing vision and a shared strategy. Only with strong, internationalized companies that maintain the highest management standards with high management standards will it be possible to sustain the country’s leading role in the technological frontier areas in which it competes. Therefore, I am pleased to see the adoption, by leading companies such as EDP, of advanced management projects that align the strategic dimension, structural flexibility and optimization of processes. More than ever, businesses are competing on a global scale and in a hugely aggressive manner. Factors of differentiation, such as acquiring talent and expertise in networking; getting tailormade answers quickly, allocating financial and logistical resources optimally, and motivating and mobilizing teams around shared goals, all assume a key role. Since these factors are critical to the success of companies with global ambitions, they have become even more important for Portuguese firms, which come from a medium-sized country with limited resources. Thus, only by demonstrating optimization and flexibility in their responses to these challenges, combined with injecting innovation and creativity into the solutions can companies in Portugal ensure that their differences lead to success. This already occurred in the past, when we doubled resources while managing an improbable geopolitical empire that marked a transition in the history of mankind. We are a country of pioneers that wins when we connect our skills and art with the right tools, willpower and strategic determination to lead. As a tool for collaborative work, quick and relevant information, systemic articulation, and the optimization of efforts and resources, the management processes project under way in EDP, I believe, will be decisive for the success of our company, allowing it to achieve and sustain its ambitious objectives, the importance of which is paramount to the well-being of the country as a whole.
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in debate
The opinions of EDP's different personalities?
+
+
Rui Ferin Cunha
Carlos Motoki
Virginia Andrade
· EDP-Energias de Portugal, S.A.
· Escelsa
· EDP Distribution
The expectations that Carlos Zorrinho, the secretary of state for energy and innovation, has for the management processes project at EDP (internally dubbed as EDPro) are based on his thorough knowledge of this issue. We are talking about someone who has devoted a substantial part of his academic career to the study of these issues, having reached the rank of full professor in management, and who currently is deeply knowledgeable of the energy sector due to his appointed government position. It is evident that if we want to achieve our objectives in the current adverse and competitive economic environment, we increasingly need to be better organized and more efficient. We can have an intuitive approach to management, but that means surrendering our destiny to chance. Surely, a little luck never hurts, but it is essential that we master a systematic approach to process management to enhance and replicate our own formulas for success.
EDP Brazil has experienced and benefited from the internationalization of the Group's advanced process management project (EDPro) mentioned by Carlos Zorrinho, the secretary of state for energy, Carlos Zorrinho. The strategic alignment referred to in his interview takes place every year at EDP Brazil through the Balanced Scorecard method, which breaks up the EDP Group’s three strategic points of focus into objectives, indicators and goals. The scorecard also allows for the effective prioritization and optimization of critical processes to reach the established goals. The governance model has allowed the company to monitor more effectively its business processes by managing the flow of activities, indicators, targets and action plans with an easy-to-use technological platform (iBPMS). The acknowledgment of EDP Escelsa's hard work and success, for the second consecutive year, with the gold medal at the Espirito Santo Quality Awards (2009 and 2010) shows the benefits of this project.
Considering that organizations are made of different people who become aligned toward common goals, it is essential to understand and adopt an end-to-end approach to process management. This value-added strategy should aim not only to ensure results at the strategic and regulatory alignment level, but also to promote the integration of the group from the standpoint of improving operational efficiency and effectiveness. To this end, EDP Distribution has been developing a consistent strategy to achieve superior performance through the design of its business processes and measurement of its performance, as well as control, improvement and change. The innovation of processes, which without a doubt factors into a company's competitiveness, also plays a major role. Achieving innovation in areas of core competence, such as crucial business activities and the search for new solutions (based on the triangle of people, processes and systems) in line with all the new contexts in which companies must operate today, becomes a constant challenge.
José Carlos das Dores Zorrinho, 51, is the current secretary of state for energy and innovation. He holds a doctorate in information management and is a professor in the department of business administration at the University of Evora. Between 2000 and 2002, Zorrinho served as the joint secretary of state of the Minister of Home Office. He then held the position of National Coordinator of the Lisbon Strategy and Technological Plan from 2005 to 2009. The secretary of state has published several books, including Information Management: condition to win (1995), Order, Chaos and Utopia (2001) and To manage in Complex Contexts (2003).
"Today, Portugal has one of the most intelligent, green and inclusive energy policies in the world. During the first half of 2010, more than 60 percent of electricity (and about 25 percent of total energy) consumed in Portugal came from indigenous and renewable sources, generating a reduction in the cost of imports of around 500 million euros.”
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euros
207 MW
e online Cam
e gross produc ag ti r e
274 GWh
on
200 million
l unitary pot ina en m o
cy
N
Investment
Av
ourenergy*
(corresponds to average liquid production of 79 GWh per year)
Second half
Salamonde: power station expansion On Oct. 27, 2010, EDP kicked off construction for the expansion of the Salamonde power station. JosĂŠ Socrates, prime minister; Carlos Zorrinho, secretary of state for energy and innovation; Antonio de Almeida, president of the General Council and Supervisory Board of EDP; and Antonio Ferreira da Costa and Antonio Castro, administrators of EDP Production, among others, attended the ground-breaking ceremony. The project director, Jose Lopes Alves, explained the challenges of the project and promptly proceeded with signing contracts for the construction, which will be the responsibility of the consortium Teixeira Duarte/Epos/Seth.
Power Stations Open In September 2010, a group of team members from EDP Production paid a visit to the Carrapatelo, Ribatejo, Castelo de Bode and Alto Lindoso power stations. The experience deepened their knowledge of the production side and also strengthened team spirit at EDP.
SUMMER ENGINEERING As part of the Living Science program, a group of youngsters got the chance to visit EDP's Castelo de Bode, Alto Lindoso and Ribatejo power plants. Even with this multifaceted crowd, the satisfaction they felt for the hosting and the explanations received, was easy to read.
40 on
of 2005
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our energy
Business leaders visit Baixo Sabor This September about four dozen business leaders toured the construction site at Baixo Sabor as part of a program offered by the EDP Foundation and EDP Production. They got a look at new hydroelectric technologies, as well as the new business opportunities the project will bring to the community. The business leaders were able to see firsthand the growth and potential of this mighty project. They also learned how Baixo Sabor could act as a basis for regional development.
Board tours current projects The administrative board of EDP Production took a tour of the company’s new hydroelectric projects. The trip started at Picote and Bemposta on Aug. 26, 2010, went to Baixo Sabor on Sept. 1 and ended at Alqueva on Sept. 7. The board members saw various aspects of the projects under way ―including the speed and energy with which they are being completed ―and received detailed briefings from the project teams on the ground. . And, they saw the speed and energy of the projects as well.
Energy Route leads to Sines and Alqueva On Sept. 29, 2010, some 100 team members came calling at the Sines Power Station and the new Alqueva dam. Participant Jorge Manuel, who worked with DHR-CC, had this to say: "I really enjoyed this visit. It was an opportunity to experience the different activities of EDP and share a different vision of the company." Energy Routes is part of the I’m + EDP program, which brings together team members to meet staff in the different areas of the Group's business through visits to power plants and distribution and marketing facilities in Portugal. The next road trip is expected soon. One group of team members will leave Porto to see a production center in the northern section of Portugal.
PROMOTING EFFICIENCY
800,000 energy-efficient bulbs distributed by Jan. 2011
20 million EUR in energy savings
Since this past September, EDP has been traveling from north to south, bringing energy efficiency to Portuguese residents. The initiative, part of the EDP Universal Service program, is called ECO EDP. Organizers plan to distribute 800,000 compact fluorescent bulbs in mainland Portugal in exchange for incandescent bulbs. In addition to consuming 80 percent less energy than the older incandescent bulbs, the new lights can last up to eight times longer, helping families save on their energy bills. This effort will save the same amount of energy as that consumed by more than 66,000 Portuguese households in an entire year and reduce CO2 emissions equivalent to that of an annual carbon footprint of more than 9,000 Portuguese. The energy savings offered by this program amount to more than 20 million euros. Check out this and other activities of ECO EDP Program at www.eco.edp.pt.
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human capital
“It's important to celebrate what we've accomplished” On Sept. 23, 2010, team members from EDP Portugal, Spain and Brazil gathered to talk about the best things they've done in human resources. More than 200 people participated in the human resources Accomplishment celebration to meet and exchange their experiences
T
he day began with a strategic reflectionmeeting with human resources managers and a visit to the central thermal unit of the Ribatejo region, to give the managers insight into one of the company's areas of focus (see caption). In the classroom, the program continued with a presentation by Maria Joao Martins, director of EDP Human Resources, on the main projects developed in the last year (HR+ Achievements). “It's important that we celebrate what we've accomplished,” said Martins. 42 o n
“Connecting the teams, promoting the sharing of knowledge, not just through more efficient support mechanisms but above all through emotional intelligence and the certainty that being next, being simple and acting in partnership with the business is the most virtuous cycle and the best global practice," she added. Absent from the meeting because he was out of the country, Antonio Mexia (CEO of EDP), and Pita de Abreu (EDP HR administrator) sent “thank you” messages to all pres-
ent for their dedication and commitment and reminded all that "people are the most important asset of EDP and what truly set us apart from other groups." Different people, same objective
One overarching theme was the importance of working as a team to achieve optimal results. This idea truly showed itself in the phrase “Meeting is a beginning, but remaining together is a process, and working together is a success.”
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human capital
On a day when team members from a variety of locations came together, it was important to hear the various stories and experiences they all had to share. But “the most interesting thing was seeing that, despite our diverse realities, we're all on the same page,” said Martins. In the opinion of Adilia Pereira, director of Human Resources and EDP Production, “It's important to know what the group wants in terms of human resources and then after that to look at the specifics and know how to incorporate them. You need to be strategically aligned with the management and with each other. But success also comes from managing both specific and diverse issues.” Elaine Ferreira, HR director of EDP Brazil, supports this idea. “The cultural
differences (between each of our locations) are a challenge,” she explained. “We need to work along one single vein while still maintaining our differences, and this is what EDP does best.” The meeting honored the best projects developed by the companies in attendance. In the opinion of Maria Joao Martins, “All of the businesses have merit in HR. It's necessary to appreciate that.” The “live our energy” anthem was the key to the day's close. For Ferreira, “Independent of where we work, we all have felt unity. This is such a strong thing that a song like that [the EDP anthem] makes even our newest team members emotional upon hearing it for the first time. It's the feeling of belonging — that no one is left out. This is the face of EDP, our whole being.”
Conquests RH +
A Visit to the Central Thermal Unit Maria Manuela Cardoso, of EDP Commercial Solutions, was one of the people who visited the central thermal unit of the Ribatejo region for the first time. Besides her surprise with the “enormity of the structure,” the participant also highlighted this unit being a completely different environment from the one in which the majority of team members work. “Though they've already heard about it on one occasion or another, people in the office have no notion of what a production center is until the day they actually visit the location,” she says. “This exchange of experience is very important because it brings us closer to each other and reinforces the idea that, when we need to make a decision, we always need to think about what's best for the Group.”
Career Routes: Finding their Way In Brazil, team members can track the direction of one or more careers through the Career Routes system. Orient yourself and follow the coordinates ... The Career Routes program was launched in Brazil with the objective of helping team members to identify development and learning opportunities at EDP Group. Asking the question, “where do you want to arrive?,” Career Routes invites every participant to reflect, dream about and plan his or her career. Accessible through the company intranet, the new system allows team members to simulate career paths and alternatives and read descriptions of each job function. According to Juliana Salles, executive manager of Human Development, the tool is an information base to help team members plan their careers. “It presents a level of transparency and offers the opportunity to mobilize within the company. The system offers 50 natural routes and 535 alternative routes where the team member can expand upon his or her career vision. Human Resources, in partnership with this program, identified and thought of solutions to offer new possibilities within the Group,” she explains.
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human capital
A culture more focused on the client
he winners of the second edition of “Amoment With Energy – PCAE” are already known. The team is made up of Lorenzo Alvarez (Naturgas Energy), Luis Carlos Afonso Mendes (EDP Commercial Solutions), Patricia Susana Lopes Duarte (EDP Commercial) and Saulo Santana Coelho (Escelsa), who won first place for their work on the theme “Developing a Customer-Oriented Corporate Culture.” As an award, the group
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will receive a free strategy course through the international management school. The other three themes approached in the 2009 edition were “Increasing the Overall Satisfaction Index and Reinforcing EDP Group Culture,” “Hedging Stragegies” and “Improving Communication Within EDP Group as a Strategic Priority.” “A moment With Energy – PCAE” is an annual corporate initiative through which a
group of professionals from various areas of EDP areinvited to bring their energy and contribute to making EDP a company that becomes more global every day. Besides giving team members the opportunity to meet the president of EDP's executive counsel personally, these meetings also aim to promote a culture of diversity and reinforce the sharing of ideas, internal networking and company knowledge.
New Challenge Recently Launched Team members had breakfast with CEO Antonio Mexia, visited the central thermal unit of the Ribatejo region and the central dispatch in Palhava, and reflected about and shared ideas regarding “Cost Management Culture: Challenges for Creating
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a Culture of Cost-Consciousness in EDP,” accepting the new challenge launched by Mexia. Thus began, on Oct. 26, 2010, the first meeting of the third edition of "A Moment With Energy – PCAE.” After organizing in
“virtual” teams, the 12 participants collaborated to develop work in accordance with the theme introduced at breakfast with the president. The next “moments” of this program will take place during the first two trimesters of 2011.
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human capital
At EDP, Experience Matters
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he knowledge and experience of each contribute to the betterment of all — from this concept, which inspired EDP to create a specific program that could be transformed into a Group practice, the "Valuing Experience" program was born. The initiative, launched Oct. 7, 2010, by program sponsor Pita de Abreu and Maria João Martins, both of Human Resources, involves nearly 100 positions within the team member chain and emphasizes that a program's success depends on the involvement of everyone. These chains of command recognize the strategic importance of "Valuing Experience" in making a company's culture more efficient. They also help make it easier to reach out to team members of all kinds in workshops and their resulting initiatives. A consulting committee was formed of the HRadministrators of four different companies andthe director of the corporate center. The committee's mission is to facilitate the spread of the company's message to all of its team members and to play a part in the different phases of the program. Though only a select few administrators comprise the committee, the project involves the whole spectrum of EDP, from the administrative council, the department of human resources and the corporate center human resources, to the team member chains and each team member in the chain.
Knowledge exists in each of us and builds with experience. But the real value of knowledge is born when it's shared and applied so that it may be transmitted to the next generation of EDP.
Who?
The program is directed to collaborators with 30 years or more of activity in EDP, who belong to different professional groups throughout the country. They are people who the relevant knowledge and experience with the aptitude to communicate effectively that find the time available to be valued. Everyone onboard for Valuing Experience! What?
“Valuing Experience” is a program created to reveal and emphasize the experience and knowledge gained by the most senior members of EDP, and to share this experience and knowl-edge with the rest of the Group's team members.
When?
The program will launch as a pilot with 300 participants who will be divided into two subgroups. The first phase, which ran until the end of 2010, featured four awareness sessions and seven workshops that stem from a defined set of initiatives. In 2011, the second subgroup will go through the same process.
Online Campus Builds Strength Starting in February 2011, nearly 1,000 users will have access to EDP University's online campus, an advanced management platform that supports knowledge sharing among team members. This program provides training and access to training content, including e-learning courses and virtual classrooms. The platform's implementation depends on the support of DSI, DRH-CC, DFR (Value) and DMC, among other departments, and will be carried out over three phases until 2012. At that point, all EDP team members will have access to the online campus, said director Rui Brandao,
who is also a member of the project management team, at the campus' kick-off celebration. The program also involves the participation of Nuno de Brito, director of EDP University and spon-
sor of the project; Antonio Vidigal, president of EDP Innovation; and Antonio Pereirinha Fernandes, of the project management team; and members of its external partners, Cornerstone and Novabase. Antonio Mexia, president of EDP's CAE, attended the kick-off's closing and requested the involvement of all the stakeholders from various areas of the Group's activity. “EDP University does not intend to compete with any other university,” he said. “What it does intend is to share the knowledge that already exists within the EDP Group.”
What does the new online campus bring? • Access to a user's complete training history at any time • A multilingual platform that allows users to select their preferred language • Self-education, which lets users revisit
training already completed according to the availability of the developer • The opportunity for users to view or participate in events that, because of distance or cost, they wouldn't be able
to attend physically • Support in a variety of content, including video and audio • Functionality in a Web environment that can be accessed from anywhere.
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spotlight Chatting with ...
MIGUEL AMARO
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EDP ENERGIAS DO BRASIL
The achievements of a winning team In this interview, Miguel Amaro, vice president of finance, investor relations and management control for EDP Brazil — who was tremendously excited to answer questions in conjunction with his team — speaks about the company'sachievements, challenges and the objectives for the upcoming years.
MIGUEL AMARO A mechanical engineer with a degree from ISEL (Lisbon Superior Engineering Institute), Amaro arrived at EDP Brazil having already amassed a vast amount of experience in Portugal, where he had served as head of internal audits for Portugal Telecom (PT), from October 2003 to December 2007. Before working at PT, where he also was the executive officer for President Miguel Horta e Costa, Amaro was employed as a financial analyst in the telecommunications sector, at Espirito Santo B & M in Madrid, from 2000 to 2002, and as SETF (secretary of state for treasury and finance) deputy for Portugal’s Ministry of Finance, between November 1999 and September 2000.
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he initial public offering (IPO), in 2005, was the first step. Since then, a lot has been done. Five years after the IPO, and under the helm of vice president Miguel Amaro, EDP Brazil was rated among the Best Companies for Shareholders by the magazine Capital Aberto (Open Capital), a touchstone for the sector. And this recognition was not the only one. Amaro's team, and Amaro himself, have won several prestigious awards, which highlight both the company's successful operations and the work of its executives. The most recent — at least until the closing of this issue — Institutional Investor magazine recognized Amaro with the maximum rating possible among chief finance officers in the sector of electric energy and other utilities in Latin America, in a 2010 ranking. The award also highlighted another person from his team: Manager Mayte Albuquerque
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earned a spot among the top 3 in the Investor Relations category. More than 400 professionals from 200 financial institutions of several sectors participatedin this research. How does the team view the Group's importance today after going public in 2005? How do you imagine the company would be if it had not had the increase in capital?
The Group’s IPO was held as the result of a reorganization process that simplified the corporate organizational structure and migrated to minority shareholders from several subsidiaries to the holding company, EDP Brazil. This process allowed us to centralize a number of corporate activities, making the Group’s administration more efficient as a whole, and has allowed us to refine things continually over the past five years. During this period, the Group raised a total of 3.3 billion Brazilian reales through public offerings in the
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capital market, of which 1.6 billion reales were in shares (2005 IPO and follow-on in 2009) and 1.7 billion reales in corporate debt (five bond issuances and one of commercial paper). Therefore, the IPO led to EDP Brazil and its subsidiaries being placed in the Brazilian and international capital markets, diversifying the investor base and providing access to key resources that guarantee the Group’s self-sustaining growth in Brazil. What achievements would you highlight from the past five years?
The significant growth in the power generation field was the main achievement of the EDP Group throughout these five years post-IPO, during which the installed capacity more than tripled, currently reaching 1,741 MW (versus 500 MW in 2005). We had this period, the entry into to operation of the hydroelectric plant at Peixe Angical (450 MW in partnership with Furnas), and the mini-hydro Sao Joao and Santa Fe plants,
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TO MY TEAM, THANK YOU! "This recognition was the result of work accomplished by the entire company, in particular those people who belong to different teams and their leaders, who are part of the finance vice presidency, whom I have had the privilege of managing and whom I thank for their dedication, involvement and commit48 o n
ment. From the IR area, obviously, since it is the company's main interlocutor with the market and the top 3 of the Latam’s Institutional Investor's Ranking, passing through Financial Structuring, Budgeting and Control, Business Development, Tax Management, Operations and Financial Services,
and Consolidation and Accounting, to Supply, Infrastructure and Information Technology, and Communications. It presents us with more responsibilities and challenges for the future, which we must learn how to face and overcome with effort, innovation and teamwork."
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in addition to the fourth engine at the Mascarenhas plant. We also participated successfully in the 2007 power auction with the Pecem thermoelectric project (720 MW in partnership with MPX), which is in an advanced stage of construction, with operations scheduled to start in early 2012. In addition, the company successfully implemented an asset exchange in 2008 with Grupo Rede, via which we acquired stock control of the Lajeado hydroelectric plant (900 MW in partnership with Eletrobras). We also established a joint venture with EDP Renewables, from which we acquired in 2008 an in-use wind farm in Santa Catarina (14 MW), and we are finalizing the construction of a wind farm in Rio Grande do Sul (70 MW). How would you evaluate the performance of the company's shares?
The return of EDP Brazil shares for its shareholders, since the IPO (until April 11,
2010), has been 138 percent — 101 percent in share valorization and 37 percent in dividends. The value of paid dividends, since the IPO to date, was 1.1 billion reales. EDP Brazil has, until that day , a valuation above the Ibovespa index and the IEE – BM & FBOVESPA’s electric energy index (Brazilian stock exchange). What still needs to change in the stock market since then? What still needs to be changed (in terms of regulations, etc.)?
We saw the beginning a few years back of a global trend of investors seeking to apply their resources to socially responsible business,environmentally sound, and obviously profitable. Such investments consider that sustainable companies create more value for shareholders over the long term because they are better prepared to face economic, social and environmental uncer-
tainty. Over time this demand has strengthened and originated new instruments in the international capital markets. In 2006, EDP Brazil became part of the ISE, which requires a continuous improvement process, as every year its evaluation parameters change to require participants to bring sustainability and corporate governance initiatives to the forefront and exclude items that have already been implemented by most companies or have become legal requirements. How is corporate governance evaluated within the EDP Group?
As a member of the BM & FBOVESPA Novo Mercado, which lists a market segment of companies that have the highest standards of governance, EDP Brazil voluntary committed to additional practices of transparency, accountability, and fair and equal treatment for its shareholders, employees, customers and suppliers. v
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Photos Caption 1- Executive Secretary; 2- Budget and Control; 3- Financial Structure; 4- Infraestructure; 5- IT Applications; 6- Tax Management; 7- Financial Operations; 8- Investor Relations; 9- New Business; 10- Infraestructure; 11- ITC Governance.
The team from the Sao Paulo office represents all the workers who are part of the Espirito Santo team, which is also praised in this interview
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To ensure these conditions, its financial statements are developed from procedures and internal controls prepared using the Internal Control System of Financial Reporting methodology (SCIRF), based on the Sarbanes- Oxley (SOX) law, even if the company does not trade shares in the American market, where this is a legal requirement. ICSFR Our corporate governance model is based on best practices recommended by the Brazilian Institute of Corporate Governance: shares issuance of a single class of shares with equal rights; action of advisers with experience in operational and financial issues; and sealed access to information and right to vote to the advisors in cases of conflicts of interest. EDP Brazil also maintains an audit committee, a remuneration committee, and a sustainability and corporate governance committee, which act in support of the board of directors, in different areas of responsibility. According to the recent revisions in BOVESPA's regulations for new markets, EDP Brazil has already met the new requirements: 1) More than 30 percent of its board should consist of independent directors (actually it has 50 percent) 2 ) 50 o n
A few years ago, a global trend started of investors seeking to apply their resources to socially responsible, environmentally sound and obviously profitable businesses
Constitute an audit committee, which company did following the IPO 3) Separate the board chairman (chairman) and chief executive officer (CEO) roles, which also became a reality after the IPO. Recently, we were named one of the Best Companies for Shareholders by Capital Aberto (Open Capital) magazine , attaining second place among companies with a market value of between $US 5 and 15 billion. According to the magazine, we also got the second-best rating in terms of corporate governance, right behind the BM & FBOVESPA.
And the action in the IR (Investor Relations) area?
The IR area at EDP Brasil has been consolidating itself as an interface between the capital market and the company. During the elaboration of the annual plan, the trends and the communication needs (one-on-one's, road-shows, conferences, etc..) of the different types of investors and shareholders are analyzed and incorporated into it, and initiatives are designed and implemented to meet and communicate with these stakeholders in an ever more targeted, useful and complete way. The modernization of communication tools (new IR Web site and releases) and the use of new ways of communicating (Twitter, Slideshare, etc.) are other examples of the evolution that has occurred in this area. A few years ago, a global trend started of investors seeking to apply their resources to socially responsible, environmentally sound and obviously profitable business, environmentally sound, and obviously profitable started. 51 In recognition of this work, the IR area of EDP Brazil, through its officer Mayte Albuquerque, was recently recognized by analysts from Buy Side and Sell Side in Institutional Investor's Latin Ameri-
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ca 2010 Executive Team ranking as the third best, i.e. top 3, of the electricity and other utilities sector. in Institutional Investor magazine’s Latin America 2010 Executive Team Ranking. What is the profile of EDP’s minority shareholder?
At the end of the third quarter of 2010, the composition of EDP Brazil's shareholders free float was 29 percent nationals and 71% foreign, and 3 percent individual and 97 percent institutional investor. In your opinion, what factors have contributed to EDP Brazil's inclusion in the list of "Best Companies for
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Shareholders" in Capital Aberto (Open Capital) magazine?
The aforementioned commitment to sustainability and corporate governance practices; ongoing efforts to increase the company’s liquidity, including the shares follow-on held at the end of 2009; the commitment of the company’s management team in evaluating investments in new projects while maintaining the Group’s level of profitability and return to investors; the dividend policy, with 50 percent payout and increasing distribution reales/per share; and the pro-active position of the investor relations area, answering to market questionnaires, contacting analysts and managing expectations.
How do you imagine EDP in five years?
Since the company's inception in 1996, the path of EDP Brazil has been defined by coherent action, keeping focus on a balance between providing quality of service to its customers, achieving solid financial health through a prudent debt profile, and inspiring a sense of ambition to take advantage of opportunities for profitable growth while maintaining a risk profile in its portfolio. We imagine EDP Brazil acting with the same principles and values that have governed it so far, but with a greater focus on innovation, given the changes experienced by the sector worldwide, as well as obviously the right people who can continue to sustain the Group as an important point of reference in the Brazilian electricity sector.
Photos Caption 12- Consolidation and Accounting; 13- Infraestructure and Telecom; 14- Supplies; 15- Infraestructure; 16- Patrimony Accounting and Costs; 17- Finance, Treasury and Financial Structure; 18- ICT; 19- Shopping Platforms; 20- Financial Services; 21- General Accounting
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sustainability R e s p o n s i b i l i t y fo r t h e E n v i ro n m e n t
HC boosts electric mobility In Asturias, HC Energía organized a meeting on the electric vehicle and its practical implications for the company.
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n Oct. 29, Graciano Torre, regional minister of industry in Asturias, Luz María Peláez, of the Ministry of Industry, Tourism and Commerce, and João Manso Neto, CEO of HC Energía, participated in a meeting on the electric vehicle and its practical implications for the company. HC, which launched the proposal for household customers at Feira de Muestras, began implementing the recharging stations in public locations and on its premises. Some of these work lines, which HC has had in development for more than a year, are already a reality. The company belongs to two of the three working groups that materialized the plan of the Ministry of Industry, Tourism and Trade. HC Energía is part of the search and promotion group and the infrastructures and demand management group. It only
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doesn't intervene in the industrialization group, which is composed of solely automakers. This past year, HC Energía Asturias led the implementation of the city-elect and Gijon car living projects presented by the government, and in Jan. 2010, the company signed an agreement with the suppliers Temper and Gam togive a boost the electric vehicles. As an example of its commitment to mobility, HC has already installed eight recharging stations at its working centers. There are stations for team members and for all users of electric vehicles. In addition, the company has agreed to the installation of recharging stations in the cities of Oviedo, Avilés, Siero, Langreo and Gijón. Electrical mobility, in Spain, is here to stay. Connect yourself to the power supply and contribute to a more sustainable world!
Available charging stations Oviedo Headquarters ( La Plaza de la Gesta Parking) La calle Paraiso Station (Calle Paraiso Parking) Corredoria Substation (Almacén Corredorial Parking) Gijón Roces Station (Centro de Trabajo Parking) Carreño C. T. Aboño (Oficinas Central Parking) Ribera de Arriba C.T.C.C. Soto-IV (Oficinas Central Parking) Langreo Valnalón – Langreo (Centro de Trabajo Parking) Trasona Avilés-Substation (Centro de Trabajo Parking)
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More sustainable couriers PORTUGAL LIGHTS UP
EDP Valor took another step on the path toward sustainability. On Oct.15, the company began to use electric motorcycles for their courier services in Lisbon. They have three energy-efficient motorcycles, two scooters and one maxi-scooter, all of which have zero CO2
emissions, an average operating cost of 0.46â‚Ź /100km and virtually no maintenance costs. The couriers drive around 100 kilometers a day in Lisbon. This way, step-by-step (in this case kilometer by kilometer), EDP is contributing to a better world.
In partnership with Sonae MC, edp5D distributed 850,000 light-saving lamps to promote energy efficiency. The free swap of an incandescent lightbulb for two energy-saving bulbs was well received by the general public, who headed to Continente orModelo supermarkets to make the swap. In line with EDP's dedication to corporate social responsibility, this initiative, an integrated part of the promotional plan for efficient consumption, aimed to broadcast the implementation of energy-efficiency measures to the country's population.
Act now. Be connected The previous edition of the CSR Forum, in 2008, focused on sustainable markets and business ethics, seeking to introduce discussions around the new paradigms of sustainability. In 2010, the forum aimed to respond and provide solutions to the challenges faced by business and society. To get more information on the event, visit www.forumrso.aip.pt. On Oct. 21, 2010, the 4th Forum on Corporate Social Responsibility and Sustainability took place at the Lisbon Congress Center, bringing together national and international top speakers from different areas and sectors and more than 1,200 participants. The theme was "value networks," which fell within the rubric of the European Year
for Combating Poverty and Social Exclusion as well as the International Year of Biodiversity. "Act now. Be connected!" set the tone for a day of intense debate regarding new strategies for more intelligent, sustainable and inclusive growth in the world. Among the speakers were personalities such as globally recognized businessman and social entrepreneur Oded Grajew, who revolutionized business positions in Brazil and serves as president and founder of the Ethos Institute for Business and Social Responsibility. Also in attendance was Marc Kieburger, social entrepreneur and founder of Free the Children. This organization, which now has about 650 schools in Asia, Africa and Latin America, provides education to more than 50,000 children.
It has already received numerous awards for its work, including the World's Children's Prize for the Rights of the Child (also known as the Children's Nobel Prize). EDP had an institutional presence, as a platinum supporter, and through the participation of its director of sustainability and environment, Neves de Carvalho, who was a guest speaker on "Sustainability Investment: Not a matter of 'why' but 'when'." The next edition of the forum has already been scheduled for Oct. 25, 2011 . Take note because, after all, the challenge is for everyone and calls for quick action — "Act Now. Be Connected!" Learn more at the official Web site of the 4th Forum on CSR and Sustainability at http://www.forumrso. aip.pt. o n 53
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foundation* In this issue, we highlight the new dance show “Cisne Negro” (Black Swan), in Brazil, and a must-see new exhibition at the Museum of Electricity, in Lisbon, called "Cities of Vieira da Silva and Arpad Szenes".
EDP Institute supports Cisne Negro With the support of EDP Bandeirante and the EDP Institute, under the direction of the Hulda Bittencourt, the “Cisne Negro” Dance Company presented their new production, Baobab, in the city of Taubaté, Sao Paulo. This groundbreaking work brings together drama, dance, music and literature, with the company's dancers exhibiting a series of movements inspired by the "The Little Prince." As in the famous novella by Antoine de Saint-Exupery, each act is unique, with a look and feel all its own. At its core, Baobab also reveals through dance the importance of environmental preservation and sustainability.
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Successful partnership The EDP Institute and EDP Renewables have partnered in Tramandaí, Rio Grande do Sul (Brazil). The goal is to get information, security, culture and education to the community that lives around the wind park. The two EDP teams have spent the last six months attempting to understand the dynamics of the community and initiate a socio-environmental cooperative dialogue with local authorities. And work has already begun. In addition to attending a special meeting of Consepro (Community Council for Public Safety), EDP hosted a "Dialogue With the Community,” led the "Art Energy" competition under the theme of biodiversity and participated in many other events.
Museum of Electricity
"The Cities of Vieira da Silva and Arpad Szenes "
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Maria Helena VIEIRA DA SILVA The poetry is in the street II, 1975 Poster
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Arpad SZENES Auprès of Persepolis.. 1964 Oil on canvas 73 x 92 cm From the Arpad Szenes Vieira da Silva Foundation From Budapest to Lisbon, from Paris to Brazil. "The cities of Vieira da Silva and Arpad Szenes" is the title of a new exhibition, which runs until Jan. 16, 2011, at the Museum of Electricity, in Lisbon, Cinzeiro 8 Gallery. Dozens of works are on display, including portraits of places with biographies of both artists, in a journey that crosses itineraries both imaginary
and mythical. This exhibition, the third featuring the work of the two artists, was made possible by the Arpad Szenes Vieira da Silva Foundation, which is supported by the EDP Foundation and appears to the extent of the Lisbon Architecture Triennale dedicated to the theme "Let's Talk About Houses." The Museum of Electricity is one of the host venues.
A virtual tour of Oviedo
Getting to know Oviedo in a “virtual” sustainable way is the idea behind of the new space the Foundation and HC Energía created at the newly opened Museum of La Eria. This project makes available to the visitor to an electric bike to explore Oviedo in a virtual way. Explore the Old Town, Mount Naranco or even visit the head office of the HC on the Plaza de la Gesta. It is also possible to explore with a friend on another bike. With a focus on mobility and this new attraction offers the visitor a new perspective that speaks to sustainable energy duringh their bike trip through the city. Not surpisingly, the museum offers the public electric bicycles as well. Oviedo is the first virtual tour to be offered by HC Energía, but surely there will be more “virtual” rides like this in Spain soon!
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photographic essay E D P R e n ew a b le s P h o t o g ra p h y C o n t e st
Wonders of Nature EDP Renewables held a photo contest via the company intranet, encouraging the full participation of all team members from the different regions: Europe, United States and Brazil. Geographically separated but united by a common passion – photography – the participants shared with the whole company their most representative snapshots in the various categories open to competition. With the object of bringing people together, promoting communication and encouraging non-work-related activities, the competition also led to the submitted photographs being integrated into EDP's bank of images. In this essay, we present some of the images shared in each category.
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p h o to g ra p h i c e ss a y
Heath Herje Trypton, Okla., U.S. o n 57
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Alberto Borobia Wind Farm Serra Voltor Cabra del Camp, Tarragona, Spain
Ashley Stultz Rail Splitter Wind Farm Hopedale, Ill., U.S.
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Ana Ruiz Lostao Lake Tekapo, New Zeland
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Sarah Distelrath, Lilongwe, Malawi
Stephanie Brandon Lone Star Wind Farm Abilene, Texas, US 60 o n
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Tomas Cid Wind Farm Zas A Coru単a, Spain
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Justin Van Beusekom Meridian Way Wind Farm Concordia, Kan., U.S.
Raquel Romero Lopez Pantano del Burguillo, ﾃ」ila, Spain
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in focus CARLOS CAVALEIRO, Engineering and Thermal Construction Director at EDP in Brazil
When did you start working for the EDP Group?
Our team has been one of dedication and resilience beyond the imaginable
I've been working for the Group for 27 years, beginning Feb. 1, 1983. Up until now, what has been your biggest challenge?
Throughout my career in EDP, I have found happiness in each new position |by finding the challenges. I would not say bigger challenges, but each one has been fascinating than the other. The design and construction of the Porto do Pecém Thermoelectric Power Plant in Ceará is extremely challenging because it has a specificity, complexity and dimension that transcend what I have done during these 27 years at EDP. I am also responsible for implementing the operational and maintenance activities and building the team, with the help of EDP Portugal. What is the importance of this development for EDP, and how does it feel being part of its story?
This new development is of vital importance to the EDP Group in Brazil and represents a unique opportunity for the Group as a multinational. In addition, it shows that EDP’s standards are consolidated, independently of the geography in which each project is being developed. And, as the one responsible for the project, I feel immense pride in being part of its story. What are the biggest challenges you and your team have faced so far?
I think that the difficulties should not be kept secret. Only with a strong team spirit is it possible to move ahead, and this is what we have done. Our team, made up of Brazilians and Portuguese, has been one of dedication and resilience beyond the imaginable. For that reason, there is no other option for us but to achieve the established goals. Tell us about your average day.
My day starts quite early, around 7 a.m., and ends late. Given the diversity of the entities involved in the project, and the areas that compose the team that works with me, it is necessary to have a default sche64 on
dul e for the week that regularly suffers some adjustments. How do you reconcile your work with your personal life?
Throughout my life, I've always been able to reconcile my professional and personal lives, which is not always easy, but this is only possible when you have a family like mine. My wife, my son and my daughter are just extraordinary. Only with such a family is it possible to create the balance needed to have a serene and happy life, aspects that are brought into the working life have allowed a higher probability of success. Do you have any hobbies?
I enjoy playing golf.
What is your motto?
Try to be happy in every moment by seeking to contribute in some way so that those who interact with me are also happy. What is it like living in northeastern Brazil? Do you miss Portugal?
It is very pleasant to live in the Northeast, although most people in Portugal imagine the northeastern Brazil as a place for vacation and not for work. For me, even while working, I can enjoy the constant beauty of this region. of Brazil. Another positive aspect of the Northeast is its friendly people, who are always willing to help without asking for anything in return - unfortunately, this is a characteristic we don't see much of today. Do I miss Portugal? A lot!
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edp is more than energy, it’s life
EDP is part of people’s life. Over 20 million people in 12 countries make our energy their own, at home, at work, at school, everywhere. This is why we continue to invest in development and technology, in minimizing the environmental impact of our operations and, above all, in initiatives that preserve the environment, that preserve life. For all this we can say that EDP is more than energy, it’s life.
www.edp.pt
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moveon Planet EDP
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On the move
World Bike Tour Sao Paulo
EDP teams are participating in cancer awareness walks in various cities in northern Portugal. Proceeds go to supporting the Portuguese League Against Cancer.
For the third time in a row, EDP Brazil sponsored a World Bike Tour in Sao Paulo. As is the tradition, the event takes place on the day celebrating the founding of Sao Paulo.
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Scottish Renewables Offshore Wind Conference Team members from EDP Renewables will attend the biggest wind energy conference ever, leading a discussion on the future of the industry. 01
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Energy with life – solidarity in schools Effort in curriculum of schools until the end of the current school year. Solidary initiative promoted by EDP Gås. 01
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Presenting the Results
SMS Innovation
The annual financial report of EDP Renewables will be presented in Madrid, Spain.
A lecture will be given by Lincoln Paiva, consultant and managing partner of Green Mobility. With the participation of Antonio Laporta, director of innovation strategy at EDP, last September Paiva embarked on his firm's
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Ă gora Program
Company-wide Employee Town Hall
AWEA Wind Power on Capitol Hill
Aimed at senior management and macro structure, this effort calls for reflection and discussion of the top priorities for EDP Production. Electricity Museum.
A town hall meeting was held each quarter to share results, ask questions, respond to team members' queries and hear their input.
The American Wind Energy Association hosted this influential wind-industry meeting in Washington, D.C. Participants also had a chance to meet with members of Congress.
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Future Energy Summit
2020 Richard Branson Award
Supporting Nonprofits
EDP will be at the World Future Energy Summit, in Abu Dhabi, to promote innovative new technology, ideas and services that can help to build "Smart Networks."
For the third consecutive year, EDP and Visao magazine are taking applications for the 2020 Richard Branson Award.
As of Jan. 3, 2011, nonprofit groups can apply for support for public and private foundations. More information available at www.edp.pt.
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