Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Over 1000 improvement plans sent to suppliers, with over 64% success rate in achieving sustainability standards.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Suppliers not meeting adequate sustainability levels.

Mitigation Strategies

• Sending personalized improvement plans to suppliers; using GoSupply platform for assessment and improvement.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG criteria integrated into procurement decisions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 14064, ISO 9001, OSHAS 18001, ISO 45001, ISO 26000, IQNet SR10, SGE21, SA8000, NP 4469

Third-party Assurance: Forética

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Management
• Waste Management
• Workforce Diversity
• Community Investment
• Safety
• Governance
• Compliance
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Reduced emissions intensity by 52.4% from 128 gCO2e/kWh to 60.9 gCO2e/kWh between 2017 and 2021.
• Renewable energy capacity reached 88.3% of total installed capacity in 2021.
• Achieved Gold Seal from the Brazilian GHG Protocol for its 2020 greenhouse gas inventory.
• Adherence to the Brazilian Business Commitment for Biodiversity.

Social Achievements

• Launched the 'Conexão Digital' project, improving customer experience and digital inclusion.
• 16,966 new connections in the 'Luz para Todos' rural electrification program in Bahia.
• 3.3 million low-income customers benefited from the Social Tariff program.
• 1.3 million training hours for employees, averaging 83.5 hours per employee.

Governance Achievements

• Established a Sustainability Committee to advise the Board of Directors.
• Reaffirmed ISO 37001 anti-bribery management system certification.
• Received the Pró-Ética seal for the fourth consecutive year.

Climate Goals & Targets

Environmental Challenges

• Water scarcity in Brazil affecting energy generation.
• Increased demand for thermal generation due to water scarcity.
• Slowdown in obtaining environmental licenses due to the pandemic.

Mitigation Strategies

• Investment in renewable energy sources.
• Implementation of water management strategies.
• Development of alternative sourcing strategies for licenses.

Supply Chain Management

Supplier Audits: 83% of new suppliers in 2021 were selected based on environmental and social criteria.

Responsible Procurement

• Anti-corruption clauses in contracts.
• Inclusion of LGPD clauses in contracts.
• Environmental and social criteria in contracts.
• Compliance assessment for contracts above R$ 4 million.
• Use of Dow Jones Risk & Compliance tool for monitoring suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth of renewable energy
• Investments in smart grids
• Electrification of transport
• Green hydrogen

Reporting Standards

Frameworks Used: GRI, SASB, DJSI, TCFD, UNGC, AA1000

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 37001

Third-party Assurance: KPMG Assessores (for sustainability data); External audit for financial data.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)
• SDG 6 (Clean Water and Sanitation)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

Neoenergia's initiatives contribute to these SDGs through renewable energy generation, climate action, water management, innovation, biodiversity conservation, and stakeholder partnerships.

Sustainable Products & Innovation

• Smart grids technologies
• Renewable energy projects
• Green hydrogen production
• Electric mobility solutions

Awards & Recognition

• Pró-Ética Seal
• The Sustainability Yearbook mention
• FTSE4Good Index Series inclusion
• CDP Climate score A-
• Brazilian GHG Protocol Gold Seal
• Various other awards and recognitions

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy

Environmental Achievements

• Reduced emissions intensity from 61 gCO2e/kWh in 2021 to 1 gCO2e/kWh in 2022 (Note: 2022 was atypical due to the gas-fired power plant not operating commercially). Increased renewable energy capacity from 4,547 MW in 2021 to 5,100 MW in 2022.
• 90% of high and medium voltage networks digitalized by 2030 (target)

Social Achievements

• Not disclosed

Governance Achievements

• Implementation of TCFD recommendations for climate-related risk and opportunity reporting. Achieved an A- score in the CDP Climate 2022 questionnaire.

Climate Goals & Targets

Environmental Challenges

• Atypical 2022 operations due to the gas-fired power plant not operating commercially. Difficulty in obtaining data from some sources for emissions calculations.

Mitigation Strategies

• Continued promotion of renewable energy generation and digitalization. Investment plan for a zero-carbon future. Exclusions of emissions with a total amount less than 2% of the Group's total emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Uses GoSupply tool for supplier environmental data management

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Expansion of renewable energy portfolio

Reporting Standards

Frameworks Used: NBR-ISO 14064-1:2018, GHG Protocol

Certifications: Null

Third-party Assurance: Accredited company by the Brazilian GHG Protocol (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Biodiversity
• Circular Economy
• Health and Safety
• Diversity, Equality and Inclusion
• Responsible Supply Chain
• Ethics, Integrity and Transparency
• Local Communities
• Customer Satisfaction
• Economic Performance

Environmental Achievements

• Reduced emissions intensity of power generation from 128 gCO2e/kWh to 3.6 gCO2e/kWh (2017-2023). Note: 2022 and 2023 values reflect atypical years due to reduced operation of Termopernambuco.
• Achieved 77.5% digitization of high and medium voltage networks (target: 90% by 2030).
• Inaugurated the Neoenergia Renewable Complex, the first associated renewable energy generation facility in Brazil.
• Completed construction of new transmission lines in Lagoa dos Patos, Vale do Itajaí, and Morro do Chapéu projects.

Social Achievements

• Increased female representation in leadership roles to 30.4% and 8.4% among electrician staff.
• Neoenergia Cosern and Neoenergia Elektro recognized among the Best in Brazil in the Abradee 2023 Awards.
• Neoenergia Institute celebrated five years of operation, impacting approximately 350,000 people.
• Implemented the first six automation islands with self-healing technology at Neoenergia Pernambuco and Neoenergia Cosern.
• Increased digital or hybrid calls to 94% (from 86% in 2018).

Governance Achievements

• Obtained external certification of Compliance system for the fifth consecutive year.
• Recognized with the Pro-Ethics seal for the fifth consecutive year.
• Expanded ESG commitments from 16 to 30 goals.
• Sold 50% of eight transmission assets to GIC, Singapore's sovereign wealth fund.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Hydrological risk in electricity generation
• Acute physical risks of flooding and extreme winds
• Regulatory changes
• Market shifts
• ESG-related risks (climate change, biodiversity loss, social responsibility, human rights)

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented Energy Reallocation Mechanism (MRE) and Generation Scaling Factor (GSF)
• Climate risk vulnerability assessments with action plans for adaptation
• Access to green bonds and sustainable financing
• Internal Carbon Pricing (ICP) project
• Biodiversity Plan 2030
• Human Rights Due Diligence System (DDDH)
• Integrity Program

Supply Chain Management

Supplier Audits: 89% of key partners selected based on environmental and social criteria in 2023

Responsible Procurement

• Incorporation of specific social responsibility clauses in contracts
• Supplier Code of Ethics
• Supplier Integrity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rains, flooding, extreme winds)
• Hydrological risk

Transition Risks

• Mandatory carbon pricing
• Stricter policies
• Changes in resource availability

Opportunities

• Development of low-carbon products and services
• Access to new capital markets
• New business opportunities in renewable energy, green hydrogen, and electric mobility

Reporting Standards

Frameworks Used: GRI Standards, OCPC 09, TCFD

Certifications: ISO 37001 (Anti-Bribery Management System), ISO 45001 (Occupational Health and Safety Management System)

Third-party Assurance: Deloitte Touche Tohmatsu Auditores Independentes Ltda.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Initiatives aligned with SDGs 7 and 13 are integrated into the company's governance and sustainable management model and linked to executive compensation.

Sustainable Products & Innovation

• Green hydrogen products
• Electric mobility solutions
• Smart grid technologies
• Energy storage solutions

Awards & Recognition

• Abradee Award
• Aneel Ranking
• Transparency Trophy
• Merco
• Ranking Exame Corporate and Leadership Reputation
• Eco Award
• Valor Inovação Brasil Award
• 100 Open Corps
• Smart Customer
• Prêmio Cliente S.A.
• Latam Aloic Award
• Era do Diálogo
• SNPTEE
• IIA May Brasil
• Aberje Award
• Atlantic Forest-Friendly Company

Environmental Metrics

ESG Focus Areas

• Climate Action
• Protection of Biodiversity
• Circular Economy

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 6
• 7
• 12
• 13
• 14
• 15
• 17

The Company’s leadership commitment to sustainable energy development is in line with the contribution of the achievement of the sixth, seventh, twelfth, thirteenth, fourteenth, fifteenth and seventeenth Sustainable Development Goals (SDGs), recently approved by the United Nations (UN).

Environmental Metrics

ESG Focus Areas

• Education
• Biodiversity
• Climate Change
• Arts & Culture
• Social Action
• Institutional Collaboration

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 10
• 11
• 13
• 14
• 15
• 17

The Institute's programs and projects are aligned with the UN's Sustainable Development Goals.