ESG Controversies & Accountability
With the aim of ensuring greater transparency and granting additional context, EDP has set this section regarding specific material ESG controversies identified by external ratings agencies, including current staus, our position, and corrective measures taken. This page is updated on a continuous basis.
ESG principles, policies, and practices play an essential role and increase their importance in the company strategies to address the needs and interests of their stakeholders.
However, these initiatives may not always avoid an ESG controversy. Sometimes, these controversies could result in the payment of fines.
| Controversy | Topic | Geography | Analyst | Opening Date | Status |
|---|---|---|---|---|---|
CMECs | Bribery and Corruption | Portugal | Sustainalytics & MSCI | 02-06-2017 | Ative |
| Pedrógão fire | Quality and safety | Portugal | Sustainalytics | 03-06-2017 | Closed |
| São Manoel | Community Relations | Brazil | MSCI | 18-07-2017 | Closed |
| Douro dams sale | Accounting and taxation | Portugal | Sustainalytics | 23-03-2023 | Ative |
| Wildcat Creek | Community Relations | South Central (US) | Sustainalytics | 21-12-2021 | Ative |
| Privacy - Spain (GDPR) | Data Privacy and Security | Spain | Sustainalytics | 22-02-2022 | Closed |
| Privacy - Spain (GDPR) | Data Privacy and Security | Spain | EcoVadis | 22-02-2022 | Ative |
| Fire in Monchique | Quality and safety | Portugal | Sustainalytics | 25-07-2018 | Ative |
| Continente case | Anti-competitive practices | Portugal | Sustainalytics | 05-05-2017 | Closed |
| Protest by EDP employees | Labour Relations | Portugal | Sustainalytics | 04-09-2014 | Ative |
| Competition Authority | Environment | Portugal | EcoVadis | 2019 | Closed |
| Protest by EDP employees | Human rights | Portugal | EcoVadis | July 2024 | Active |
| Competition Authority | Ethics | Portugal | EcoVadis | June 2024 | Ative |
| Regulator | Ethics | Portugal | EcoVadis | 2020 | Closed |
| Mogi das Cruzes | Risk & Customer Relations | Brazil | S&P | 04-08-2025 | Active |
Controversies
Tax controversy regarding sale of hydro portfolio
In December 2020, EDP sold a portfolio of Hydro Power Plants in Portugal to a French consortium led by ENGIE. There is an ongoing investigation process about the tax implications of the transaction. As always, EDP is collaborating with the authorities. EDP understands, considering reputable experts’ opinion, that the operation met all legal and tax.
ESG Severity
Background
EDP's Position
Measures adopted
-Public Prosecutor ordered EUR 335.2M tax collection (Nov 2025)
-Legal proceedings ongoing regarding tax liability determination
Current status
Investigation process about CMEC and DPH
On 2 June 2017, EDP was made aware of the investigation being carried out by the DCIAP since 2012 regarding the amounts due to EDP for the early termination of the CAEs and the right of use over the DPH. The procedure is still under investigation and until the present date there are no relevant developments or explanations on why EDP is a defendant. For further information, please see the latest update regarding this matter as well as EDP’s market notifications and public positioning.
Abuse of market position
This case is related to the bidding strategy in the ancillary services market of EDP Produção's power plants. According to the AdC - Competition Authority, between 2009 and 2013, EDP Produção would have limited the supply of secondary reserves by the power plants under the CMEC - Contractual Balance Maintenance Costs regime. In this context, the AdC imposed a fine of €48 million on EDP Produção, which was confirmed by the Competition Regulatory and Supervisory Court (TCRS), following the appeal filed by EDP Produção.
Commercial Campaign EDP/Continente Plan
EDP, S.A. and EDP Comercial were charged by the Portuguese Competition Authority (AdC) with entering into an alleged non-compete agreement with Sonae MC - Modelo Continente. This decision was appealed before the Portuguese Competition, Regulation and Supervision Court (TCRS), which reduced the fines by 10%, to EUR 2.6 million and EUR 23.2 million, respectively. This TRCS decision was appealed before the Lisbon Court of Appeal (TRL). In April 2021, this court referred the case back to the Court of Justice of the European Union. The judgment of the Court of Justice of the European Union was delivered on 26 October 2023, referring a final decision on some of the questions to the TRL. On 19 February, the Lisbon Court of Appeal issued a judgment confirming the TCRS's sentence. See more details
Transparency and Dialogue: Regulatory Controversies in São Paulo
EDP São Paulo faces regulatory actions in several municipalities, focusing on the maintenance of electrical infrastructure and pole sharing. The company has implemented emergency and preventive measures. In May 2025, ANEEL recommended the renewal of its concession contract, based on compliance with performance indicators. The page linked below gathers information on controversies and measures adopted, reflecting EDP’s commitment to transparency.
São Manoel dam in Brazil
The São Manoel Hydroelectric Power Plant was built a few kilometres from the border of the Kayabi Indigenous Territory, inhabited by three ethnic groups (Kayabi, Apiaká and Munduruku). The only indigenous manifestation involving the São Manoel Hydroelectric Plant took place at the end of 2017 and the claims were not related to environmental actions implemented by the Company. The controversial fact corresponds to an isolated event and currently there is no other manifestation, and all actions foreseen in its Environmental Licensing Process are being implemented.
ESG Severity
Background
EDP's Position
Measures adopted
-Establishment of community relations monitoring programme
-Investment in local community development initiatives
Current status
Vegetation management
E-REDES and some of its employees were involved in two legal cases related to the wildfires of 2017 (Pedrógão Grande) and 2018 (Monchique). In the Monchique case, the fact-finding hearing was held in 2022, during which E-REDES and an employee presented witnesses and evidence already included in their written defence. Based on this, the judge decided not to indict them. As no appeal was filed, the decision became final. In the Pedrógão Grande case, several individuals, including two E-REDES employees, were tried. The court concluded that no one was guilty. Although appeals were lodged, none challenged the acquittal of the E-REDES employees.
ESG Severity
Background
EDP's Position
Measures adopted
-Aerial surveillance expanded to 14,000 km
-Drone and laser inspection implemented
-Active cooperation with Civil Protection authorities