Presentation Sergio Figueiredo XIII Regional EACD Lisbon Debate 2014

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The Company, Foundations and Society

Lisboa, 28th Oct 2014 0

The Next Generation

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WHY?


Why should a company invest in culture and social innovation?

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A company already plays an important social role when

•It invests and creates value

•Generates jobs and profits

•Guarantees quality products and services

•…and paying taxes?


Why should a company invest in culture and social innovation?

3

A company already plays an important social role when

•It invests and creates value

•Generates jobs and profits

•Guarantees quality products and services

•…and paying taxes?

for EDP the challenge is enormous and is already ongoing

•liberalised market and crisis pressure

•environment impact and climate change

•new energy solutions (that impact consumer patterns)


Why should a company invest in culture and social projects?

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our leading and innovative response

•Efficient consumption

•microgeneration

•Electric mobility

•Smart grids

•Renewable energy It’s in our hands



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•microgeneration


•Smart grids

•Renewable energy

EDP future/the relationship of loyalty we are able to build with stakeholders

•Sharing power and promoting co-creation

• inspiring trust and sense of beloing

•Increasingly have to be a company open to society

It’s in our hands



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•microgeneration


•Smart grids

•Renewable energy

EDP future/the relationship of loyalty we are able to build with stakeholders

•Sharing power and promoting co-creation

• inspiring trust and sense of beloing

•Increasingly have to be a company open to society

It’s in our hands

• that the company finds suppliers, resources and consumers. Partners and critics as well.

• that business finds its reason for being, developing in the field and projecting its future sustainability

IT IS IN THE COMMUNITY…


much more than social responsability

What is not • money and logo • working only for rankings • acting according to external pressures • giving precedence to those with more access,

more power or simply who shout the loudest

Vision





Vision

What it should be • Including another type of innovation in its

corporate model • Inspiring and leading a collective attitude • Demand much more than is expected from

“traditional management”





Vision

What it should be • Including another type of innovation in its

corporate model • Inspiring and leading a collective attitude • Demand much more than is expected from

“traditional management” • Creating value for the shareholder

• Transparency in decision making

• Being connected to the business •… and


HOW?


HOW?

What NEW SOLUTIONS should the EDP Foundation build so that,

between the State and the Market,

CIVIL SOCIETY may reinforce its ability to assert itself,

reveal its greatest talents, benefit from formulas tested by us and

capable of breaking the cycles of poverty.


EDP response 5 Statutary MISSIONS Strategic VALUES Paths to SUCCESS

Social Energy Arts Education Heritage


EDP response

5 Statutary MISSIONS Strategic VALUES Paths to SUCCESS


1. New Solutions that generate change

2. Excellence in the arts

3. Opens business group to Society and the World

4. Combining energy with science and education

5. Promoting contemporary and sustainable cities


EDP response

5 Statutary MISSIONS Strategic VALUES Paths to SUCCESS


1. Staying Close to the Communities

2. Global Ambition

3. Partnering networks

4. New talents

5. Measuring results


“Para ti se não faltares” (sports); Orquestra Geração (music) Escola de Judo (sports) Turma do bem (oral health) Aprender a Empreender (entrep.) Escolinha de rugby (sports) Transformers; Do Something Da rua para o palco” (dance)

SOCIAL HUB

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INCLUSION Community territory

Social Inovation Map

One of the EDP Foundation’s

most ambitious projects in

its involvment with the Third

Sector: CREATING SOCIAL

INNOVATION HUBS, CENTRES

THAT CONNECT IN AN

INTELLIGENT AND CRITICAL

MANNER THE RESPONSES AND

RESOURCES THAT BEST ADAPT TO

SATISFYING A POPULATION’S

SOCIAL NEEDS.

2 SOCIALLY UNDERPRIVILEGED COUNCILS

9 NETWORKING PROJECTS ONGOING

7.000 DIRECT BENEFICIARIES


SOCIAL LAB

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SOCIAL BUSSINESS •Entrepeneurship Self employment

Incubator: “Marias”; ”Cozinha com Alma”; “Faz-te Forward”; “MOVE”; “Go Fresh”; “coworking”

Education: INSEAD/IES; Catedra Yunus;

Post-grad UCP; ESG/EDP University; Impacts: national map Social Innovation

(QREN); LBG; SROI; Action Tank/BCSD


Breaking the cycles of poverty promoting entreperneurship and social inclusion: GENERATING A SOCIAL PROFIT AND AN ECONOMIC ACTIVITIE, SUPPORTING CREATIVE AND INNOVATIVE APPROACHES TO SOCIAL NEEDS.


SOCIAL EFFICIENCY

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RATIONALIZE RESOURCES •Energy Food

•Employment Housing Challenge waste Parque solar solidário Communitary gardens Co-working: Ass.Acreditar; João sem

medo; all-desk Others“Comer bem é + barato”; “Dar e

acordar”.


MAKE A stronger “third

sector” with “NO MONEY”:

CHALLENGE A SOCIETY BASED IN

WASTE; several projects that will

provide basic resources for NGOs

(energy and food) and innovative

formulas to inspire new responses

at central social problem in

Portugal (unemployment)


“Para ti se não faltares” (sports); Orquestra Geração (music) Escola de Judo (sports) Turma do bem (oral health) Aprender a Empreender (entrep.) Escolinha de rugby (sports) Transformers; Do Something Da rua para o palco” (dance)

SOCIAL HUB SOCIAL LAB SOCIAL EFFICIENCY

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SOCIAL VENTURE CAPITAL (Bolsa Valores Sociais/ EDP Solidária/…)

SOCIAL BUSSINESS •Entrepeneurship Self employment

INCLUSION Community territory

RATIONALIZE RESOURCES •Energy Food

•Employment Housing Incubator: “Marias”; ”Cozinha com Alma”;

“Faz-te Forward”; “MOVE”; “Go Fresh”; “coworking”

Education: INSEAD/IES; Catedra Yunus;

Post-grad UCP; ESG/EDP University; Impacts: national map Social Innovation

(QREN); LBG; SROI; Action Tank/BCSD

Challenge waste Parque solar solidário Communitary gardens Co-working: Ass.Acreditar; João sem

medo; all-desk Others“Comer bem é + barato”; “Dar e

acordar”.

VOLUNTEERING (Bolsa de Horas/ Comunidade EDP/…)


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make a “third sector” stronger

from Charity to Creativity

•from Patron to Partner

•from financier to facilitator

•Project sustainability

•High standards and management

• Measures inputs

• Measures immediate

outputs

• Measures results

after projects are

completed

• Assesses social costs

avoided by the

intervention

SROI Method

Measuring impacts

The first Social Stock Exchange in Europe

• 764 investors

• 468 thousand social grants traded

• 26 projects listed

• €2.55M in investments

http://www.lbg-online.net/index.php/lbg/corporate_citizenship/lbg_international


#1 World

70 75 80 85 90 95 100

Codes of Condut (DimensãoEconómica)

Scorecards/MeasurementSystems (IS) (Dim.Económica)

Electricity Generation IS (Dim.Ambiental)

CorporateCitizenship/Philantropy

(Dim.Social)

99

98

84

90

…and also leads

80 90 100

Risk Management(Dim.Económica)

Climate Strategy IS(Dim.Ambiental)

Biodiversity IS (Dim.Ambiental)

Human CapitalDevelopment…

StakeholderEngagement IS…

Social Reporting(Dim. Social)

"Best in Class" and 100%


WHERE?

From the Sabor River… … to Kakuma


Vision

Power for low-income populations:

the next 2 billions…

EDP: a player in building a new global scale ecosystem

A2E


1,5 billion people without access to electricity

3 billion people use firewood for cooking and heating

Market potential estimated

at USD 500 Bn/yr w/ 4 billion people at the bottom-of-the-pyramid


Access to Power for Development

REPU

TATIO

N

• Member of the European Commission for the Sustainable Energy Europe Campaign (effective) •Global Energy NGDO Partner

•Official UN-Energy Member (application phase)

Corporate Social Responsibility and Business Sustainability is not necessarily a cost


6.000 refugees and 300 families Directly participated in implementation of the project


Now

Kakuma: from a “nowhere land” to a place to live

savings of 50 thousand liters/year of diesel avoids 700 thousand tons of CO2 emissions.

10 programs… the impacts

benefits 77 thousand refugees, 11 institutional buildings, 15 schools, 2 hospitals


10 programs, some of the impacts

solar cooking: 40 women open

restaurants (entrepreneurship)





300 families produce and sell food (the only

agriculture in the fields)

agro-forestry at home



solar lighting for students


48% of students make “grade A”

in math



fights school drop-out rates


Vision

First to benefit should be those where the dams are to be built

• Increasing ‘green energy’ • Securing supply needs • Creating jobs • Reducing external trade deficit

EDP complies to national challange

Improoving populations’

living standards

OUR VISION

dams


Social Contract with the communities surrounding the Dams

Involved with the local communities. More than 120 representatives from Civil Society (priests, doctors, teachers, entrepreneurs, advocates, mayors) established an informal and continuous participative relationship before the construction phase: listening, informing, involving.

Promoting local Trade

Promoting Entrepreneurship and self-employment

Promoting Social Inclusion

• A Sense of belonging • Communicating through Sensors rather than

megaphones • Managing risk better that managing conflict


Promoting Trade • Guaranteeing production during

construction of EDP projects / + 8 years • Enabling new models of agricultural

production and management • Developing new distribution channels that

sustain post-EDP trade

AGRICULTURE (Sabor & Tua)

HANDICRAFTS (Sabor)

• Involved with local Producers

• Involved with the Contractor

• Handcrafted Design Products • Distribution Channels

• Bring high consumption markets closer • Qualify populations with low levels of

training


In the regions afected by the construction of dams, the social, entrepeneur and cultural projects runned by Fundação EDP involved 20 thousand families.

“Sabor Entrepreneur: •132 candidates •47 new companies •55 employees (40% from RSI and unemp. subsid.)

Rural Sustainability : 3 thousand Christmas gift baskets sold; supplied 20% of the work sites’ consumption;

Learning to Take Charge: 175 students on 8 “dam” councils, 15 mini-companies, 10 schools.

Promoting Entrepreneurship and self-employment


• Including youths by teaching Music and Sports • Standards and transparency in project support; 24.500

beneficiaries • Social tariff and 98 thousand light bulbs for

underprivileged families

SOCIAL INCLUSION

CULTURAL STIMULATION

• the Geração Orchestra • if you don’t skip school • EDP Dam Social Work • PPEC

• Senior Theatre • Philharmonic Orchestras • The Northern Orchestra

• VOICE projects • Energy Bus

• Creativity & artistic expression for senior citizens • The importance of musical training in the cultural

development and integration of youths

EDUCATION • Promoting education on power & the environment • Stimulating a knowledge and appreciation of poetry among

Youths

Promoting social inclusion


WHAT?


2013 €14,5 million budget 100% executed

Social Innovation helds 50 % of the investment in patronage

387 thousand people attended the 33 exhibitions produced by Fundação EDP

199 thousand visitors for the Museu da Eletricidade

More than 2.800 volunteers dedicated 17.842 hours of work, in which 7.247 hours of voluntary work where done by employees family and suppliers employees. In Portugal the estimated value is 486 thousand euros .

1 million and 300 thousand people benefited

Social Contract with the Dams’ communities

The activity depends nearly exclusively (92%) from the annual budget transfers from EDP.

Each beneficiary “costed” (on average) 7,9€


2014

Seven new strategic axes consolidate social innovation projects

The first two projects to universalise energy at the “bottom of the pyramid” double the size of the EDP Foundation

The financing model presents a profound structural change, with the Foundation creating approximately 40% of its own revenue

“re” Foundation with global ambition

The activities to be developed in Portugal, including the patronage policy, represent less than half of the budget, which constitutes a profound structural change in the institution’s history.

Dam projects and A2E finance themselves and release €443 thousand for allocated structural costs.


WHO?


SO

CIAL

– G

uilh

erm

e Co

llare

s Pe

reira

CULT

URE

– Jo

sé M

anue

l San

tos

ENER

GY/M

USE

UM

- Edu

ardo

Mou

ra

MAN

AGEM

ENT

– Pa

ula

Pint

o Fo

nsec

a

COM

MU

NIC

ATIO

N - C

atar

ina

Seix

as

DAM

S - A

ndré

Ren

te

A2E

- Luí

s Far

ia

PROGRAMMING INSTITUTIONAL PROJECTS

BOARD OF DIRECTORS

MANAGEMENT

Chairman – António de Almeida Deputy Administrator – Sérgio Figueiredo

Trustee – António Mexia

5 3 2 6 11 4 3

TEAM headcount

1 – dep.administ 7 – management 34 – employees


Bolsa de voluntariado é investimento: capital humano para a capacitação

do Sector Social

Capacidade de

organizar, gerir,

mobilizar para

resultados;

Transformar o

contexto, mais do que

ajudar;

Corporate culture

Inovação Social entre o Estado e o Mercado, novas soluções para velhos problemas Empresa, centro de decisão nacional: resposta da Sociedade Civil

Abrir Empresa à Sociedade

(reputação, confiança,

sentimento de pertença)


Company & Society, the Next Generation

After the seminar I was truly inspired by edp. It made me realize that business can be so much more than what is typically expected from traditional management.

You are taking business to the next level, and I would love to participate on such an innovative project.”

“My name is Emily Brazill and I am a Canadian CEMS student who recently participated in the edp think tank.