Climate Change Data

AES Brasil Energia S.A.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,438.6 tCO2e (gross GHG emissions)
Scope 1 Emissions:953.8 tCO2e
Scope 2 Emissions:284.1 tCO2e
Scope 3 Emissions:1,068.6 tCO2e
Renewable Energy Share:100%
Water Consumption:58,975 m³ (total withdrawn)
Waste Generated:205.1 tons (consolidated total)
Carbon Intensity:0.070 tCO2e/GWh (2023)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Ethics and Transparency
  • Community Development
  • Energy Transition
  • Biodiversity

Environmental Achievements

  • Offsetting of greenhouse gas emissions, maintaining carbon neutrality since the start of operations.
  • 243.4 hectares of Atlantic Forest and Cerrado restored.
  • Preservation of 3 endangered Brazilian fauna species.
  • BRL 26 million invested in environmental programs.

Social Achievements

  • 73 women graduated in the Operation and Maintenance of Wind Farms training program.
  • Local teams comprised only of women employees for the operation and maintenance of the Tucano and Cajuína Wind Power Complexes.
  • BRL 2.1 million invested in projects targeted at community development, benefiting 4.2 thousand people.
  • Total women employees increased by 19%.

Governance Achievements

  • Industry benchmark in ESG, listed in B3’s Novo Mercado segment.
  • 40% of the CEO’s compensation linked to ESG criteria.
  • Joined the Collective Action for Integrity in the Electricity Sector.
  • 917 employees participated in the 2nd Compliance Week.
  • Energy Trading and Risk Management System (ETRM) for managing market and credit risks.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2040 (aligned with AES Corporation's target).
Medium-term Goals:
  • By 2030, reduce scope 1 and 2 greenhouse gas emissions by 18% tCO2e per MWh generated, compared to 2020.
  • By 2030, have 30% of underrepresented groups in leadership positions.
Short-term Goals:
  • By 2025, have 30% of women in senior leadership positions.
  • By 2025, offset historical carbon emissions since the beginning of AES Brasil’s operations.

Environmental Challenges

  • Regulatory changes in the Brazilian electricity sector, including the 'Gold Rush' and 'Amnesty Day' impacting renewable energy project development.
  • Transmission network limitations and ONS restrictions causing curtailment of energy production.
  • Need for fair remuneration for hydropower plants considering their energy security services.
  • Climate change impacts on energy generation (hydropower, wind, solar).
Mitigation Strategies
  • Diligent management of project schedules to take advantage of regulatory changes.
  • Active portfolio management and energy trading strategies to mitigate market risks.
  • Participation in industry discussions and advocacy for fair asset remuneration.
  • Diversification of geographical presence and generation sources to enhance resilience against climate change impacts.
  • Hydrological projections and climate forecasts to manage portfolio exposure risks.

Supply Chain Management

Supplier Audits: 100 suppliers assessed through the Supplier Performance Index (SPI)

Responsible Procurement
  • Sustainability Policy
  • Code of Conduct for Suppliers
  • Supplier Performance Index (SPI)
  • Contractual Compliance Program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting hydropower, wind, and solar generation.
  • Damage to dams due to excessive rainfall.
Transition Risks
  • Regulatory changes affecting renewable energy projects.
  • Market shifts impacting energy prices.
Opportunities
  • Increased demand for renewable energy.
  • Development of new clean energy technologies (e.g., green hydrogen).

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, IIRC Framework

Certifications: ISO 14001, ISO 45001, ISO 55001

Third-party Assurance: KPMG Auditores Independentes Ltda.

UN Sustainable Development Goals

  • SDG 7 (Affordable and Clean Energy)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 13 (Climate Action)

Initiatives contribute to these goals through renewable energy generation, community development, and climate change mitigation.

Sustainable Products & Innovation

  • Autopilot (automatic load curve controller)
  • Renewable energy certificates (RECs)
  • Carbon credits

Awards & Recognition

  • AAA score from MSCI ESG Rating (three consecutive years)
  • A- rating in CDP Climate Change
  • B rating in CDP Water Security
  • Participation in B3’s Corporate Sustainability Index (ISE) portfolio (17th consecutive year)
  • Top 100 Open Corps Award
  • Awesome places to work for award
  • Pró-Ética 2022-2023 seal
  • Anefac 2023 Troféu Transparência