EDP receives global award for groundbreaking Climate Transition Plan
- EDP wins ‘Net Zero Progression of the Year’ at Environmental Finance’s Sustainable Company Awards, highlighting the company's leadership in the energy transition.
- The award commends EDP's strategy to tackle climate change and to drive the company toward net zero by 2040.
EDP emerged as the winner of this year's ‘Net zero progression of the year’ at Environmental Finance’s Sustainable Company Awards, which highlights the company's global leadership in the energy transition. The basis of this recognition is the company’s comprehensive and groundbreaking Climate Transition Plan, which is driving EDP toward its goal of net zero emissions by 2040.
A panel of independent investors and industry experts praised EDP’s detailed roadmap, which sets a strong example of how large-scale energy companies can align their business strategies with global climate goals. Published in 2023, EDP's Climate Transition Plan is built upon its commitment towards net zero by 2040 (which includes becoming coal free by 2025 and all green by 2030) and the results of internal work by the Net Zero Acceleration Taskforce. Using 2020 as a baseline year, EDP plans to cut emissions from thermal generation from over 50% of its total emissions to zero by 2030, including plans to decommission coal-fired power plants by 2025, which EDP is on track to achieve.
Earlier this year, EDP released its first Climate Transition Plan Progress Report following the approval of its net zero target by the Science Based Targets initiative (SBTi). The report registered a remarkable overall emissions reduction of 34% compared to 2022 levels, including direct (Scope 1) and indirect (Scope 2 and 3) emissions. Scope 1 emissions, primarily from thermal power, fell by 55%, while Scope 2 emissions were down by 39%, and Scope 3 by 13%.
"At EDP, we see the energy transition as both a responsibility and an opportunity to lead the way towards a net zero future," states Rui Teixeira, global CFO and Head of Sustainability at EDP. "In 2024, we reaffirmed this commitment to sustainability and decarbonization with a €17 billion investment plan for 2024-2026 to bolster renewables and fortify our electricity networks. We are steadfast in our mission to support global decarbonization efforts and we believe that by doing so, we can create a world where renewable energy fosters progress and prosperity for generations to come."
In 2023, EDP was recognized in the Environmental Finance Corporate Sustainability Awards for its commitment to sustainable practices, winning the "Circular Economy Transition of the Year" award globally. This honour acknowledged EDP's efforts to integrate circular economy principles, particularly in response to international guidelines such as the European Green Deal and Sustainable Finance Taxonomy. The company has also been driving innovative recycling and resource efficiency initiatives, further solidifying its leadership in sustainability.
The year before, EDP secured the “Community Involvement Program of the year” award for its 'just transition' programme, which supported workers and the local community during the decommissioning of a major coal power plant. The 1.3GW Sines coal power plant closed in 2021 after 36 years of operation. The firm plans to repurpose the site into a 100MW green hydrogen production facility. In the meantime, EDP launched its 'Futuro Ativo Sines' initiative to support the community around the plant in its transition.
With this new award highlighting its Climate Transition Plan, EDP strengthens its position as a global leader in sustainable energy, paving the way for the energy sector's transformation toward a greener, more sustainable future.
