50172 - EDP ES

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Environmental & Social Review Summary

Project Number

50172

Company Name

EDP Espirito Santo Distribuicao de Energia S.A.

Date ESRS Disclosed

Aug 26, 2026

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Aug 28, 2026

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Aug 6, 2026
Signed : Aug 13, 2026
Invested : Aug 20, 2026

Sector

Electric Power Transmission

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

This project will promote the development of infrastructure debentures market as it will be IFC's first long-term debenture and the first issuance in Brazil under the newly enacted Law 14,801.

Overview of IFC's Scope of Review

IFC reviewed the proposed investment by appraising technical, environmental, and social (E&S) information provided by the company during appraisal meetings. The site visit took place on June 24, 2025 (including Gloria substation, BTZero pilot household and EDP ES office in Vitoria), along with publicly available information, including sustainability reports, E&S policies, and the code of ethics. Interviews occurred with EDP Brasil and EDP ES management. Additional interviews included EDP ES employees, contractor workers, and community members.
IFC reviewed the corporate Integrated Management System (IMS) procedures and organizational structure charts as well as key E&S documents including Environmental Impact Assessment (EIA) for power substations and distribution lines conducted between 2023 and 2025 and it’s analysis of alternatives, purchase and service agreements for main suppliers and contractors, environmental and labor internal and external audits of main contractors and monthly inspection reports, occupational health and safety risk identification and management documentation, biodiversity assessments, greenhouse gas emissions reports, fauna management and protection reports, land acquisition processes, stakeholder engagement records, grievance mechanism control reports, and emergency response plans.
With this approach, IFC’s review focused on the company’s management system level to ensure that EDP ES has the right set of tools and resources to perform a thorough screening of E&S risks (including social & biodiversity) and appropriate management plans and procedures to adequately manage risk and impacts in line with Brazilian regulations and IFC standards.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and Working Conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 - Community Health, Safety and Security

This is a Category B project per IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project has limited adverse E&S impacts. These impacts are site-specific, largely reversible, and can be addressed through existing mitigation measures and good international industry practices (GIIP). Key E&S risks and impacts associated with the project include: (i) adequacy of EDP environmental and social management system (ESMS) to identify and manage social risks and impacts in its operations as well as those related to the implementation of the BTZero program; (ii) adequacy of gender-based violence (GBV) management among contractors; (iii) potential sulfur hexafluoride (SF6) gas emissions;; and (iv) monitoring and management of gender-based violence (GBV) risks towards communities.

Environmental and Social Mitigation Measures

Stakeholder Engagement

EDP has established a Corporate Stakeholder Engagement Policy. This policy is supported by procedures that guide stakeholder identification, communication, and grievance management. Dedicated channels such as the Sustainability Channel, Call Center, and Ombudsman enhance these efforts. For local initiatives like Boa Energia, EDP applies project-level engagement procedures, including early stakeholder mapping and tailored engagement plans. To further strengthen and formalize its stakeholder engagement, and as mentioned in ESAP #1 above, EDP ES will develop a Stakeholder Engagement Plan (SEP) aligned with IFC PS1 for the BTZero Program.

Broad Community Support

Environmental & Social Action Plan

S.no	Description	Anticipated Completion Date
1	EDP ES will augment its current procedures and systems to consider key elements of social risk management as required in PS1, as follows:• A Social Impact Assessment Procedure (SIAP), designed to identify, assess, and manage social risks and impacts associated with project activities.• A Stakeholder Engagement Plan (SEP), to define engagement strategies to ensure timely disclosure of BTZero information and effective stakeholder engagement in the urban areas where the program is implemented.• Designate a qualified professional who will be responsible for implementing and managing the SIAP, the EGM and SEP.	12/15/2026
2	EDP ES will prepare a supplement to its Code of Ethics to be distributed to the contractors, including an explicit reference to Gender-Based Violence within the Grievance Mechanisms. In parallel, EDP will continue to provide regular training on the Code of Ethics to its direct employees, covering all topics addressed therein, including conduct-related and ethical standards.	11/30/2026
3	EDP ES will update their current Sulfur hexafluoride (SF6) working instruction to fully meet IFC EHS Electric Power Transmission and Distribution Guidelines, including improved SF6 leak rates goals, adherence to Good International Practices (GIIP) such as those outlined at IEEE C37.122.3 (2011): Guide for SF6 gas handling in high-voltage equipment, and other measures to limit emissions to lower levels.	08/30/2026
4	EDP ES will include in its trainings program and/or in its Safety orientation sessions, gender-based violence (GBV) and Sexual Exploitation, Abuse and Harassment (SEAH) towards the local population orientations, based on the GBV and SEAH Related Supplement. The training/session will apply to both EDP ES personnel and contractors, EDP ES to make this training/session part of the induction for any new employee (EDP ES & Contractors) and to include refresher training/session at least every 2 years.	11/30/2026

Client Documentation

File Name	Actions
2026.07.07 Final ESRS EDP ES - clean.pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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Environmental & Social Review Summary

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Broad Community Support

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Environmental and Social Mitigation Measures

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