Centrais Electricas Brasileiras S.A.- Eletrobras Annual Report 2012

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FY2012 Annual Report · Centrais Electricas Brasileiras S.A.- Eletrobras

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Annual and
Sustainability Report

2012

Pau Brasil
Caesalpinia echinata

Annual and
Sustainability Report
2012

Orquidea
Catasetun macrocarpum

Message from the
Chairman of the Board

Eletrobras’s future and past met in 2012; the
year the company celebrated its 50th anniversary
of services provided toward Brazil’s sustainable
development. On one hand, during the celebration
of the 50th anniversary, Brazilians had the
opportunity to remember the achievements of the
company and its strategic importance toward the
country’s development through the implementation
of an electric system that is unique in the world,
characterized by its clean energy matrix based on
hydroelectric power and a huge interconnected
transmission system. On the other hand, Eletrobras
gave clear signs of the path to be taken for the
coming years, focusing on environmental, social
and economic sustainability.

Two facts that occurred in 2012 demonstrated
this union of past and future in the present. The
first such fact was Eletrobras’s active participation
in negotiations and debates that occurred in the
Rio+20 summit, especially in relation to the United
Nations in areas where the company has great
expertise: energy efficiency, the use of renewable
sources of energy and the universal access to
electricity. In terms of efficiency, Eletrobras has
been coordinating, since its creation in 1985, the
National Electricity Conservation Program (Procel),
a program of the federal government dedicated to
raise awareness among the population about the
importance of a conscious use of energy. Highlights
of the Procel program are actions involving schools
and public authorities, improving public lighting in
cities, in addition to the Procel Seal (Selo Procel),
the program’s most readily recognized image by the
population, since it is present in home appliances
that have good energy-saving performance.

Concerning the use of renewable energy,
Eletrobras’s energy matrix is an example to the

world. In addition to having 85% of its matrix
from hydroelectric power, which is a clean and
renewable source of energy, the Eletrobras
companies have expanded their participation in
the wind power sector, which is an essential source
of energy to complement hydroelectric power. In
terms of universal access to electricity, Eletrobras
coordinates a program of the federal government
that is a global benchmark: the program Luz
para Todos (Light for All) has taken electricity to
approximately 15,000,000 people throughout
Brazil. Based on this result, the United Nations
decided to replicate this initiative worldwide and
take electricity to 1.4 billion people who still do not
have access to this basic utility that contributes to
the well being of people.

The second fact in the past year that deserves
highlight was the decision made by Eletrobras
and its subsidiaries to extend the concession of
electricity assets that were maturing in 2015 and
that were anticipated by Law No. 12,783/2013. The
effort made by the Eletrobras companies allowed
for the federal government to reduce energy rates,
bringing benefits to 190 million Brazilians who were
able to reduce their domestic energy bills and still
enjoy improvements in the labor market enabled by
the reduction of company expenses with this basic
input.

In the history of Eletrobras, every challenge was
overcome. For this reason, I’m convinced that
adapting the Eletrobras companies to this new
reality in the Brazilian electric sector will be one
more challenge to be overcome with the usual
excellence. The company will become stronger,
more profitable, competitive and subsequently,
sustainable, ready to maintain its commitment to
Brazilians for another 50 years.

MárCio Pereira ZiMMerMann
Chairman of the Board

- 5 -

Message from the President (Gri 1.1)

The year that Eletrobras celebrated its 50th
anniversary was extremely significant and symbolic
for the company. It was in the year 2012 that we
proudly registered 50 years of history, and also
when the challenges that we faced multiplied. As
a consequence, the future of the largest power
company in South America was redesigned.

official partners in the United Nation’s Conference
on Sustainable Development (Rio+20), we
presented to the public our initiatives that promote
improvements in quality of life, our contribution
to the use of more sustainable energy sources that
pollute less, and also the promotion of their use in
an efficient manner.

With operations all over Brazil, we participate
strongly in the implementation and operation of the
interconnected power system and isolated systems.
These systems are essential to supporting the
operation and growth of the Brazilian economy and
providing access to electricity for over 190 million
Brazilians in an integrated manner.

This great responsibility – which has grown over the
past five decades – has generated equally great results
that can be attested to throughout this Sustainability
Report. One highlight has been our breaking of the
world record by Itaipu Binacional, which reached 98.3
million MWh, and Angra 1 and 2 plants, which reached
16 million MWh. Government programs managed by
Eletrobras, such as Luz para Todos, Proinfa and Procel,
also reached significant figures.

In 2012, R$ 9.9 billion investments were made.
Working alone or in partnership, the Eletrobras
companies added approximately 711 MW of clean
and renewable energy and 880 km of transmission
lines to the Brazilian power matrix. In terms of
distribution, due to our 199,935 km of network,
we provide energy to approximately 3.7 million
customers.

We have made further investments, as well. In the
generation segment, approximately 22,662 MW are
under construction and an additional 19,040 MW
are under study. In transmission, we will implement
over 13,730 km in the coming years, which is a gain
of 13,885 MVA in transformation capacity.

As signatories of the Global Compact since
July 2006, we have consistently reiterated our
commitment to sustainability and to corporate
citizenship. In 2012, due to our participation as

Abiding by these premises, we continue to reflect
the principles of the Global Compact in our mission,
vision, and values, and we practice them through
actions and programs developed by our companies.
In doing so, we prove that our activities effectively
contribute to universal access to electricity, which
is one of the greatest challenges the global power
sector faces today.

In September 2012, Provisional Measure 579/12,
converted into Law 12.783, established the
form of extending the concession agreement for
the generation, transmission, and distribution
of energy. The motivation for more affordable
tariffs and reduced energy bills in all classes
of power consumption in the country led the
federal government to propose the early maturity
of concession agreements, with an automatic
extension within established conditions or, as an
alternative, the option to rebid the concession once
the original term of the contract expired. Holding
and its subsidiaries Eletrobras Chesf, Eletrobras
Eletronorte, Eletrobras Eletrosul, and Eletrobras
Furnas analyzed the various possibilities concerning
technical, economic, and strategic aspects and
opted for the extension of concessions for 30-year
contracts, thus ensuring the preservation of its size
and standing.

This year’s financial results showed great loss;
however, this loss should be seen as an isolated
event arising from the effects of Law 12.783. The
figures were severely affected by the releases
resulting from the effects of this law on our assets.

These new challenges have brought new
perspectives and a focus on the need for continuous

- 6 -

Cecropia
Cecropia

improvement, accelerating enhancements that we
had already been pursuing in order to create an ever
more efficient company. Therefore, we began our
Master Business and Management Plan while still in
2012 in order to take an immediate stand before the
new business environment of the Brazilian power
sector. We need to reduce costs related to revenues
even further, restructuring our corporate processes
and optimizing our efforts among Eletrobras
companies.

This year especially, as we value the energy of

the people who have formed our history, we
present in this report how much we have built. We
also we register our current work on economic,
environmental, and social aspects in order to
meet the expectations of our significant role in the
Brazilian power sector.

Eletrobras is growing and at the same time
modernizing itself in order to keep meeting the
power supply needs of the country with quality and
reliability, with the goal of creating an increasingly
more sustainable Brazil.

José da Costa Carvalho neto
President of Eletrobras

- 7 -

- 8 -

Mission, vision, and values (Gri 4.8)

Mission
To operate in the energy market in an integrated, profitable, and sustainable manner.

Vision
To become the largest global clean energy corporate system by 2020, with profitability in line with the major
companies in the electric power industry.

Values
• Results-driven

• Entrepreneurship and innovation

• High valuation of and commitment to people

• Ethics and transparency

Broto de Andiroba
Carapa guaianensis

- 9 -

sustainability Policy
Guidelines

The Sustainability Policy for the Eletrobras
companies was prepared with the objective of
establishing guidelines that guide actions related to
sustainable development.

This Policy represents the commitment of the Eletrobras
companies to sustainability, a concept that underlies
all actions of the companies, seeking balance between
business opportunities, society’s current needs, and the
well being of future generations.

Promotion of sustainable
development
Act as an agent of sustainable development in
the territories in which the Eletrobras companies
operate.

Clean and renewable energy
Prioritize the production of clean and renewable
energy.

Rational use of resources
Promote the rational use of natural resources
and materials needed for Eletrobras companies’
processes, systems, and operations.

Energy efficiency
Act as an induction agent for energy efficiency,
seeking greater rationality in the employment of
natural resources and promoting the development
and use of technologies, processes, and systems to
this end.

Sustainable R&D+I
Promote scientific research, development, and
technological innovation aimed at improving
performance, boosting positive impacts, and
minimizing negative impacts of the activities of the
Eletrobras companies.

Commitment to ethics and
transparency
Establish ethical and transparent relationships with
all stakeholders.

Respect human rights
Respect the human rights set forth in national
and international laws, treaties, and conventions,
refusing to accept any violation within Eletrobras
companies.

Value for stakeholders
Add value and perform operations with profitability
and competitiveness in an efficient and effective
manner, generating return for employees,
shareholders, customers, suppliers, and other
stakeholders.

Dialogue and engagement
Establish broad, transparent, permanent, and
structured dialogue channels with stakeholders,
while respecting the principles of equity, diversity,
and culture in the regions where we operate and
utilizing the benefits of these interactions in
corporate decisions.

- 10 -

Employee citizenship
Promote among employees a commitment to
sustainability in such a way that they can develop
an attitude of citizenship within the corporate
environment and in their daily lives.

Responsible partnerships and
purchases
Incorporate social and environmental requirements
into the procurement of goods and services and
stimulate this practice in business partnerships.

Workplace conditions and well
being of employees
Ensure health and appropriate workplace conditions
to employees, in accordance with national and
international standards on health and safety, as
well as demanding the same commitment from our
suppliers.

Quality of life for employees
Promote the personal and professional growth of all
our employees, as well as a work environment that
includes and fosters equity and diversity.

Sustainability management
Improve management systems so as to promote
and ensure the continuous improvement of
business processes, strengthening the principles of
sustainability.

Risk management
Operate with the aim of minimizing and mitigating
financial, environmental, social, and operational
risks, and other risks associated with the Eletrobras
companies’ businesses.

- 11 -

Main indicators 2012

Economic and Financial
• Net operating revenue of R$ 34,064 million

Environmental
• We invested R$ 197 million in environmental

• Losses for the fiscal year – R$ 6,926 million

• Equity value R$ 67,280 million

• Investments of R$ 9,850 million broken down

into:

• R$ 5,263 million in power generation;
• R$ 2,985 million in transmission;
• R$ 1,056 in distribution and;
• R$ 546 million in research, infrastructure and

environmental quality

• The investments in R&D+I of the Eletrobras

companies in 2012 totaled R$ 214 million, 18.9%
more than the previous year

Social
• We ended the year with 28,437 employees

• A 3% turnover rate was recorded

• R$ 193 million was invested in projects for society

• Procel helped save 9.1 thousand GWh in

electricity

• Luz para Todos made 120,131 new installations

protection

• We gave support for the conservation of 24

Indigenous lands and 139 conservation units

• We emitted 11,772,144 tCO2e
• We avoided 134,770,589,55 tCO2e in emissions

Operational
• We produced 207,451 GWh of energy

• Our installed capacity is 42,333 MW

• We have 55,118 km of transmission lines in Brazil

and 199,935 km of distribution lines

• We provide energy to 3.7 million customers

directly

• Of the total installed capacity of Eletrobras
companies, 85% originates from clean and
renewable energy sources

• The UHE Passo São João, UHE Santo Antônio, and
UHE Mauá plants began operations, adding more
than 500.84 MW of installed capacity

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Commitments (Gri 1.2)

evolution of the 2012 commitments we made in 2010 and 2011

Goals/Commitment 2012

Performance

Comments

GovernanCe

To promote the first performance assessment of the
eletrobras Board of directors (Bd) and executive Board
(eB) by spreading this process to all companies of the
system.

PartiallY
attained

eletrobras has standardized a methodology
for the performance assessment of the Bd
and eB and communicated the approval of
this methodology to all companies along
with the guidelines for its application.

start of activities for two new support committees to the
Board of directors: audit and risk Committee and People
Management and remuneration Committee.

To promote the first election to choose an employee
representative to serve on the Board of directors.

the Contract of Goals and Corporate Performance
(CMde) set forth, among other obligations, the
achievement of annual goals for the period of 2010-
2014, for the eletrobras companies, aimed at improving
the performance of the processes of the eletrobras
companies.

eConoMiC

investments of r$ 13.3 billion

soCial

Final assessments of career performance and
development within the scope of the first Unified Cycle
of the Performance Management system.

development of actions to improve corporate strategic
objectives, organizational performance, and well being
of employees, based on the results of two unified
surveys on organizational climate.

acquisition and installation of suggestion boxes,
provided by the holding ombudsman, in order to
capture suggestions/complaints made by outsourced
staff who work for the company and do not have access
to computers, as well as the development of a specific
communication plan to evaluate the content of these
suggestion boxes.

attained

see item Corporate Governance, on page 66.

attained

see item transparency in Management, on
page 72.

see item Contract of Goals and Corporate
Performance, on page 86.

PartiallY
attained

approximately r$ 9.9 billion was invested
in several projects for generation,
transmission, and distribution, surpassing
our own record.

attained

see item Performance Management, on
page 108.

attained

see item Climate survey, on page 107.

attained

see item suggestions boxes, on page 76.

delivery of general recommendations for the
preparation of a permanent process to train the internal
public that would lead to the formation of an internal
culture of valuation of the company’s brand.

attained

after the launch of the brand, the
holding and the companies held several
communication initiatives aiming to engage
the internal audience.

- 13 -

evolution of the 2012 commitments we made in 2010 and 2011

Goals/Commitment 2012

Performance Comments

BUSINESS

Completion of the preparation of the Business Plans for
each company of the eletrobras system in 2012.

PartiallY
attained

aggregation of own developments of approximately
1,349 km of transmission lines, 11,121 Mva in
transformation capacity in substations, and 869 Mvar of
reactive compensation.

PartiallY
attained

start of operations of the following generation
developments (own): Batalha, Barra do rio Chapéu, são
domingos, João Borges, Passo são João, são domingos,
and simplício (hydroelectric plant).

PartiallY
attained

start of operations of the following generation
developments (partnerships): Jirau, Mauá e santo
antônio (hydroelectric plant) and Cerro Chato 1, 2, and 3,
Complexo eólico livramento, Mangue seco 2, Miassaba 3,
Pedra Branca, rei dos ventos 1 and 3, são Pedro do lago,
and sete Gameleiras (wind power).

PartiallY
attained

to reach the goal (forming sPes in partnership with
private entrepreneurs) of adding approximately
4,958 km of transmission lines and 16,554 Mva in
transformation capacity to substations, which will be
incorporated to sin’s basic network.

PartiallY
attained

start of the construction of the transmission line for the
Brazil – Uruguay interconnection (390km) and of the
associated substation, in partnership.

not attained

Start of construction of UHE Inambari (2,000 MW) in
Peru, in partnership.

not attained

interruption after the edition of Provisional
Measure 579 of september 11, 2012.
eletrobras has already resumed the process
of unfolding its strategic Plan after a new
assessment of the regulatory framework.
in March 2013, the company approved the
Master Business and Management Plan.

due to the delay in obtaining environmental
licenses, 209.6 km of transmission lines,
6,301 Mva in transformation capacity, and
280 Mvar in reactive compensation were
aggregated.

UHE Passo São João started its operations in
april 2012. the PChs Barra do rio Chapéu,
João Borges, são domingos, simplício, and
Batalha are scheduled to start operations in
2013.

the wind power plant Mangue seco 2 and
Cerro Chato 1, 2, and 3 started operations
in 2011. The UHE Santo Antônio started
operations in March 2012; 9 out of the 44 units
started their operations in 2012 and the UHE
Mauá started its operations in november 2012.
the wind power plants Pedra Branca, são
Pedro do lago, sete Gameleiras, Jirau, Miassaba
3, rei dos ventos 1, rei dos ventos 3, and
Complexo eólico livramento will start their
operations in 2013.

due to the delay in obtaining environmental
licenses, 698 km of transmission lines,
1,523 Mva in transformation capacity, and
55 Mvar in reactive compensation were
aggregated.

after the Public hearing held in august
2011, an incompatibility in the layout
of the transmission lines was detected,
which forced a change in the location
of se Candiota and of the layout of lines
and, consequently, the rescheduling of the
development, with its commercial operation
being forecast to start in the first half of
2014.

the sPe responsible for the project is
awaiting decision from the Peruvian
government on the continuity of studies.

- 14 -

evolution of the 2012 commitments we made in 2010 and 2011

Goals/Commitment 2012

Performance Comments

environMental

Monitoring, with the use of the system of Corporate
sustainability Management indicators (iGs), of four
major issues (water, energy, waste, and biodiversity),
using 39 indicators.

Seek a unified strategy for the companies regarding the
use of practices that minimize or offset the emission of
greenhouse gas.

attained

see item system of Corporate sustainability
Management indicators (iGs), on page 149.

attained

see item Climate Change, on page 169.

- 15 -

table of Contents

- 16 -

about this report .............................................................................................................................. 19
highlights of the Year ..................................................................................................................... 27
voluntary commitments (Gri 4.12) ........................................................................................... 33
awards and recognitions (Gri 2.10) ......................................................................................... 37
our history.......................................................................................................................................... 41
Profile ................................................................................................................................................. 47
our Businesses .................................................................................................................................. 53
sectoral Programs ............................................................................................................................ 73
our structure ..................................................................................................................................... 83
our responsibility towards the Market ................................................................................103
our responsibility to People ......................................................................................................113
our responsibility to society .....................................................................................................135
our responsibility to the environment .................................................................................153
social audit (ibase table) ............................................................................................................183
Gri table of Contents (3.12) .......................................................................................................187
limited assurance report (3.13) and statement Gri application level Check .......197
Credits/ Contact information.....................................................................................................203
Glossary .............................................................................................................................................205

Cogumelo
Basidiomycota

- 17 -

Araucária
Araucaria angustifolia

- 18 -

about this
report

- 19 -

- 20 -

About this report

Since 2008, we have been publishing company
information and reporting our performance on
economic, environmental, and social measures.
This report is published annually and follows
the guidelines provided by the Global Reporting
Initiative – GRI (version 3.1) and refers to the
period between January 1 and December 31,
2012, with information on the 16 Eletrobras
companies: holding, Eletrobras Amazonas Energia,
Eletrobras Distribuição Acre, Eletrobras Distribuição
Alagoas, Eletrobras Distribuição Piauí, Eletrobras
Distribuição Rondônia e Eletrobras Distribuição
Roraima, Eletrobras Cepel, Eletrobras CGTEE,
Eletrobras Chesf, Eletrobras Eletronorte, Eletrobras
Eletronuclear, Eletrobras Eletropar, Eletrobras
Eletrosul, Eletrobras Furnas, and Itaipu Binacional.
With application level B+, this document contains
83 performance indicators, where 21 refer to the
Electric Power Sector Utilities Supplement, in

addition to those with profile. (GRI 3.1; 3.2; 3.3; 3.6;
3.7; 3.8; 3.9; 3.10; 3.11)

Since 2011, we have converted the Annual Report
and the Sustainability Report into one single
document, evidence that Eletrobras believes that
this content is inseparable. In addition, we underline
our main challenges and commitments, the actions
that have been performed, and the proposals for
the following years.

The complete version of this report is available
online (www.eletrobras.com/ELB/data/Pages/
LUMIS76D5F4D1PTBRIE.htm) and allows the
reader easy access to subjects of specific interest
in Portuguese, English, and Spanish. We also make
available printed, shortened, and segmented
versions for the audiences: investors and
shareholders, the internal public, and the third
sector.

Materiality Process

The Eletrobras companies treat sustainability
materiality as an integral part of the management
of the company. A Survey with Stakeholders is
performed to identify priority issues and in order
to improve the materiality process of issues to
be addressed in the report, we conduct a panel
with specialists from the sustainability area and
from the Brazilian power segment. As a result
of the survey and the panel, we reiterate to our

stakeholders the importance of issues that we
have been working on in our past reports.

The issues identified as priority by the panel
refer to the relationship with employees; the
relationship with the government; fostering of
public policies, especially participation in River
Basin Committees; impact on local communities;
renewable energy; and occupational health and
safety.

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About this report

And the Survey with Stakeholders identified as the
most relevant issues:

Economic performance (see section Our
responsibility before the market, page 103);
rational and safe use of electricity (see item Energy
Efficiency, page 178); energy (see item Energy, page

158); customer satisfaction (see item Customer
satisfaction index, page 147); and the relationship
between employees and governance (see item
Corporate Governance, page 70 and section Our
responsibility to people, page 113).

Research with Stakeholders

15%

17%

19%

Relations between employees and governance

34%

Customer satisfaction

Energy

Rational and safe use of electricity

Economic performance

The report also addresses other issues considered
relevant to our business, such as: climate change
(see page 169), economic and financial balance (see
page 194), risk of child labor and/or bonded labor
(see pages 135 and 139), and product liability (see
page 140). (GRI 3.5)

The materiality matrix has been revised to
incorporate more stakeholders and assess, in
addition to the relevance for society, the relevance
of each aspect to the business. All aspects indicated
by the GRI guidelines version 3.1 were used in the
revision. The results of the survey with stakeholders
and of the panel with experts were plotted with

weights 1 and 2, respectively, in the axis Relevance
for Society. In the axis Relevance for the Business,
the results of an internal assessment were plotted
based on a benchmarking of the publication of the
aspects in sustainability reports of companies in
the electricity sector and of Eletrobras itself. In both
axes, the aspects were classified in the low, medium
and high relevance levels. This year, Eletrobras
opted to publish the aspects classified as high and
medium relevance for the business, predicting a
greater emphasis on those of medium and high
relevance for society as well. The matrix is presented
below:

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About this report

Materiality Matrix

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Low

Average

High

Relevance for the business

Economic performance

Workplace health and safety

Child labor
Rational and safe use of electricity

Energy

Corruption

Biodiversity

Investment and procurement practices

Indirect economic impacts

Diversity and equal opportunities

Customer satisfaction

Community

Emissions, wastewater, waste

Training and education

Relations between employees and governance

Public Pollicies
Materials

Water
Initiatives to mitigate impacts from products and services

Safety practices

Legal compliance - environmental

Legal compliance - product

Legal compliance - social

Impact from the transportation of materials, employees etc.

Investments in and expenses with environmental protection

Job Opportunities
No prejudice

Freedom of association and collective bargaining agreements

Forced or compulsory labor

Rights of indigenous peoples
Customers' health and safety

Marketing communications

Customer privacy

Strategy and analysis

Organizational Profile
Report parameters

Governance, commitments, and engagement

Reliability and availability

System efficiency

Assessment and mitigation

Planning and response to emergencies and disasters

Unfair Competition

Access to electricy

Plant Decommissioning

Gathering quantitative and qualitative information
was done with the support of external consulting,
via online data collection and through direct
contact with the companies and departments of the
holding. Additionally, since 2010 workshops have
been conducted with companies, and interviews

have been held with managers and directors.

In the GRI Table of Contents (see page 184) the
indicators reported and the pages where they
are located can be found. To understand the GRI
guidelines and indicators used in this report, visit:
www.globalreporting.org (GRI 3.8)

- 23 -

About this report

- 24 -

About this report

about the illustrations
Included in the 2012 Annual and Sustainability
Report are 18 illustrations carefully developed by
artist and landscape designer Dulce Nascimento,
who does the important work of disseminating
the botanical watercolor technique in Brazil. Our
purpose is to offer an opportunity to revive this type
of illustration and contribute to the appreciation
of the diversity and rare beauty of Brazilian plants
and fruits. We also hope to promote the interest of
readers in the flora of the country, notably one of
the most important examples of biodiversity on the
planet.

Throughout our report, in addition to learning about
who we are, what we do, how we do it, and what we
did in 2012, readers will learn about plant species
representative of the five Brazilian macro-regions
and celebrate the natural resources of our country,
artfully registered in thoroughly captured details.

Eletrobras is present throughout Brazil and gathers
its multiplicity of accents and experiences under
the ideal of harmoniously combining development
and sustainability. Therefore, we could not help
but choose the Pau-Brasil (Brazilwood tree) to
open this document, a symbol of our country for
its long life and beauty. There are also other noble
examples such as cocoa, heliconia, yellow trumpet
tree , and some little-known species of fungi or the
basidiomycota mushroom.

The explanatory video on the development process
of the images that illustrate this report is available
on our home page (www.eletrobras.com). This
gift from Eletrobras is to remind society that our
energy and the Brazilian way are present in all our
actions, with sustainable development always as an
inspiration and focus.

- 25 -

Cacau
Theobroma Cacao

- 26 -

highlights
of the Year

- 27 -

- 28 -

Highlights of the Year

Eletrobras 50 years
The company promoted actions involving
employees, suppliers, and society, including events
related to the cultural and artistic heritage of the
city of Rio de Janeiro.

Organizational Strategy
Increase in installed capacity of more than 711 MW
in Generation, adding of 880 km of transmission
lines and connection of 163,000 customers in
Distribution.

Government Programs
Through Procel, we managed to save approximately
9.1 thousand GWh of electricity in the communities
where we operate and performed 120, 131
installations with the program Luz para Todos.

Participation in RIO+20
The Eletrobras companies presented to the public
their initiatives on energy efficiency, social and
environmental actions, and the goal to promote
universal access to electricity.

Concessions
The Provisional Measure 579 significantly altered
the regulations of the Brazilian energy sector,
redesigning a new regulatory scenario.

Investments
Record investments: our investments reached 80%
of the total estimated R$ 12.3 billion.

Operational Efficiency
The overall default rate went from 18.9% (2011) to
17.6% (2012) and global losses went from 34.28%
(2011) to 31.01% (2012).

In transmission, the number of outages per 100
km of Eletrobras network decreased 11% when
compared with 2011.

Record of Energy Production
Itaipu Binacional surpassed for the third time its
own world record of energy production, reaching
98.3 million MWh. Angra 1 and 2 plants also
surpassed production records, reaching 16 million
MWh.

- 29 -

Highlights of the Year

Case

Belo Monte and sustainable development
Brazil possesses the cleanest and most renewable energy matrix in the world. Our hydroelectric
power plants are the main reason for that. Beyond producing energy, they produce wealth,
economic development, job opportunities, and income, in addition to providing the conditions
for the main infrastructure projects in the country to become reality. It is within this scope
that the Belo Monte hydroelectric plant must be seen. It was designed using modern and
preservationist run-of-river technology, and with minimum reservoir, Belo Monte meets the
strictest sustainability principles, respecting the environment and surrounding communities.
Therefore, the development will not flood Indigenous lands or change the lives and routines of
the riverbank population. It will not compromise fishing, navigation, trade of regional products, or
the culture of the people who live in the region. On the contrary, the plant will not only keep the
local economy prosperous, but will also bring an increasing number of opportunities and improve
the lives of thousands of Brazilian who reside there.

- 30 -

Highlights of the Year

In the past, the influence area of the Belo Monte power plant, which covers 11 municipalities in
the state of Pará, was abandoned and suffered from a lack of structural investment. The region
was unable to have economic autonomy because of limitations in agricultural production due to
restrictions imposed on predatory exploitation of natural resources and timber depletion. Now,
because of Belo Monte, the reality is much more promising. Official data from the Ministry of
Labor reveal that, for example, the municipality of Altamira (the main region of Xingu, where
the hydroelectric plant is being built) posted the highest numbers for the hiring of workforce in
construction. The municipality created 10,554 jobs, accounting for 28.25% of jobs created in
Brazil in 2012. Belém, the capital of the state of Pará, was in second place with 9,846 new job
opportunities created (26.38%).

A detailed technical study of the environmental impacts was carried out for the project, as well as
approximately 200 technical meetings held in 11 municipalities further involving 12 indigenous
lands within a 200-mile radius of the future power plant.

The project for the plant was redesigned several times, in order to avoid environmental damage.
The size of the reservoir is a case in point. It was reduced to less than half its original size in order
to avoid flooding the region. In addition, to reduce the impact on aquatic ecosystems, the dam
was designed to keep the natural hydrological pulse downstream. The measures will reduce the
energy generation capacity of the dam (firm energy) when compared with previous projects.
However, this was a commitment made to society, seeking to reduce social and environmental
impacts in the low Xingu River region.

Other relevant aspects can be highlighted, such as the direct line of communication that the
development established with the local population. During the work on Belo Monte, Norte
Energia S.A. (the company responsible for the construction, maintenance, and operation of the
plant) aired a radio program to keep the local population informed on issues involving the 15
plans, 62 programs, 108 projects, and approximately 4,000 social and environmental activities,
all of them aiming at alleviating the impacts created by the construction of the plant. In
addition, the company responsible for the development created different public forums and
work groups to discuss and find democratic solutions with representatives of civil society for the
issues that affect their lives and livelihoods. A detailed description can be found in Belo Monte’s
Basic Environmental Project (PBA). As a complementary measure, the company responsible for
the construction of the plant made available a toll-free telephone number that serves as an open
channel for the communication of the company with the general public.

Through an open and transparent dialogue with the people who have properties affected by
the construction, the negotiation for the removal of almost 95% of the families was conducted
without the need for legal arbitration. It is important to note that in Altamira, more than four
thousand families who today live in deteriorating palafitas (suspended wood houses) on the edge
of streams will now have decent houses in urban areas less than 2 km away from their previous
homes.

For these reasons, and due to our permanent commitment to its stakeholders, supporters,
investors, and general public, we are sure that Belo Monte will be a source of pride for Brazil and
an example of sustainability for the world.

To find out more about the project: http://norteenergiasa.com.br/site/?lang=en

- 31 -

Cogumelo
Basidiomycota

- 32 -

voluntary
commitments

- 33 -

- 34 -

Voluntary commitments [GRI 4.12]

Global Compact
Since 2006, the Eletrobras companies have
undertaken to support and disseminate the
Ten Universal Principles of the UN Global
Compact related to Human Rights, Labor Rights,
Environmental Protection and the Fight Against
Corruption in all their forms within their area
of influence, as well as make them part of the
strategy, culture and day-to-day operations of the
Organization.

To find out more about the principles of the Global
Compact go to: www.pactoglobal.org.br/

The Millennium Development
Goals (MDGs)
Since 2005, Eletrobras has had its corporate
guidelines aligned with the Millennium Goals.
Within the scope of social responsibility, the Eight
Millennium Goals act as guides to the development
of social and environmental policies and are used
as criteria for the selection of social projects that
receive support from the company.

Declaration of Corporate
Commitment to Fight Sexual
Abuse of Children and
Adolescents
The company also adheres to the Declaration of
Corporate Commitment to Fight Sexual Abuse
of Children and Adolescents, which commits
to expanding the focus of social responsibility,
systematically developing and increasing the
number of concrete and effective actions to
promote awareness of employees and all its
production chain on this issue.

Women’s Empowerment
Principles
The Eletrobras companies1 adhered to the Principles
of Empowerment of Women - a UN Women
initiative together with the Global Compact -
publicly assuming a commitment to promoting
equal rights between men and women - which
reaffirms the respect for human rights and diversity
in the workplace.

www.unifem.org.br/005/00502001.asp?ttCD_
CHAVE=29254

Pro-Gender-and-Race-Equality
Program
The Pro-Gender-and-Race-Equity Program is an
initiative of the Federal Government through the
Department for Women’s Policies of the Presidency
– SPM/PR and the 2nd National Plan of Policies
for Women. It reiterates the commitment to the
promotion of equality among men and women
established in the Federal Constitution of 1988.

www.spm.gov.br

ILO’s Pact for the Eradication of
Bonded Labor
The Eletrobras companies are committed to
cutting commercial relations with economic agents
involved in the exploitation of bonded labor.

In addition to this commitment, Eletrobras
companies’ representatives participate, according
to their field of expertise, in several trade
associations and civil society organizations.

www.oit.org.br/

1 Holding; Eletrobras Amazonas Energia; Eletrobras Distribuição Acre; Eletrobras Distribuição Alagoas; Eletrobras Distribuição Piauí; Eletrobras Distribuição Rondônia; Eletrobras

Distribuição Roraima; Chesf; Eletronuclear; Cepel; Eletronorte; Eletrosul; Furnas and Itaipu.

- 35 -

Cecropia
Cecropia

- 36 -

awards and
recognitions

- 37 -

- 38 -

Awards and Recognitions [GRI 2.10]

Among Eletrobras’s achievements in 2012, we
can highlight the recognition by its stakeholders,
which resulted in national and international awards
throughout the year.

Dow Jones Sustainability Emerging Markets Index:
Our sustainability actions were internationally
recognized when we were entered into the Dow
Jones Sustainability Emerging Markets Index, a new
sustainability index for emerging markets, launched
in February 2013 but based on data reported in
2012.

Época Negócios 100: For the fourth year, Eletrobras
was considered the most prestigious company in
the energy sector in Brazil according to the annual
publication Época Negócios 100.

ISE: For the sixth consecutive time, Eletrobras is a
part of the São Paulo Stock Exchanges Corporate
Sustainability Index (ISE).

Negócios da Comunicação (Business
Communication): For the second consecutive
year, Eletrobras was also elected one of the best
companies to communicate with by journalists
in the energy sector, according to the magazine
Negócios da Comunicação, which interviewed about
25,000 media professionals in the country.

Stars of Energy Efficiency Award: The North
American organization Alliance to Save Energy
granted Eletrobras the I Stars of Energy Efficiency
Award in the international category.

Congreso Latinoamericano de Distribuición
Eléctrica (Latin American Congress on Electricity
Distribution): The study “Energy Efficiency on
Photovoltaic Systems for Rural and Isolated
Electrification,” presented by the holding
technicians, was awarded in the II Congreso
Latinoamericano de Distribuición Eléctrica (The
Second Latin American Congress on Electricity
Distribution), in Argentina.

Ser Humano Award: People management was
the highlight for the Ser Humano Award 2012,
promoted by the Brazilian Association for Human
Resources. Holding was among the five finalists
in the “Public Sector” category, for the case study
“Implementation of Unified Policies and Practices
for Career and Remuneration.”

Green Project Awards Brazil: The use of good
practices for sustainable development also placed
Eletrobras among the finalists for the Green
Project Awards Brazil for the work performed in the
Production Community Centers (CCP).
Pro-equality Seal: The companies holding, ED
Acre, ED Rondônia, Eletrobras Cepel, Eletrobras
Chesf, Eletrobras Amazonas Energia, Eletrobras
Eletronorte, Eletrobras Eletronuclear, Eletrobras
Eletrosul, Eletrobras Furnas, and Itaipu Binacional
received the Pro-Gender Equality Seal, fourth
edition, from the Special Department of Womens
Policies. Eletrobras has received this Seal since the
first edition of this program.
The Eletrobras companies also received the
following recognition for their actions:
With management focused on relationships and the
appreciation of people, ED Acre was the highlight
of the Sesi Quality at Work Award. ED Roraima won
first place in the “Education and Development”
category and second place in “Social and
environmental Development,” for which ED Acre
was also honored. ED Alagoas won in the “Large
Company” category of the award, which highlighted
the Career and Remuneration Plan as a good way of
valuing employees.
Eletrobras Eletronorte met, for the first time,
the eight criteria of the National Quality Award,
granted by the National Quality Foundation (FNQ).
The company’s Superintendence for Hydraulic
Generation was recognized by FNQ in the categories
of Leadership, Plans and Strategies, Clients, Society,
Information and Knowledge, People, Processes, and
Results.
Eletrobras Eletrosul won the Brazil Award for
Environmental Action, in the “Energy Efficiency”
category for the Projeto Alto Uruguai (High Uruguay
Project). The initiative, performed in the southern
region, focuses on the appropriate allocation of pig
manure, reducing the environmental impact and
making use of the biomass for alternative energy
generation. Eletrobras Chesf won first place among
337 federal public institutions in the survey on
Information Technology Governance, conducted
by the Department of IT Audit of the Federal Court
of Auditors. This result represents an improvement
of approximately 40% when compared with the
previous survey conducted in 2010.

- 39 -

Ipê Amarelo
Tabebuia sp.

- 40 -

our history

- 41 -

- 42 -

Our history

Centrais Elétricas Brasileiras S.A. - Eletrobras
was created in 1962 and, according to its Bylaws,
updated in 2012, can join, either directly or through
its affiliates or subsidiaries, form business consortia
or hold interest in companies, controlling or
otherwise, in Brazil or abroad, directly or indirectly
associated with the exploration of the generation,
transmission or distribution of electricity.

In 2012, the Company celebrated its 50th

anniversary, with a history marked by challenges
and achievements that decisively contributed to
the expansion in the supply of electricity and the
development of the country.

Since 2008, the company, in addition to maintaining
a leadership position in Brazil, has also started to
prospect for business in neighboring countries
in which Eletrobras operations may represent a
sustainable business opportunity.

- 43 -

Our history

Main events

1962

1968

1973

1982

1996

1997

1998

• Creation of
Eletrobras

• Aded Chesf,
Furnas,
Chevap and
Charqueadas
Thermoelectric

• Creation

of Centrais
Elétricas do
Sul do Brasil
(Eletrosul)

of Centrais
Elétricas
do Norte
do Brasil
(Eletronorte)

• Creation of
Centro de
Pesquisa
de Energia
Elétrica
(Cepel)

• Inauguration
of Itaipu, the
largest dam in
the world

• Creation of
Eletrobras
Participações
(Eletropar)

• Acquisition

of Eletrobras
Distribuição
Alagoas

• Creation of
Eletrobras
Distribuição
Roraima

• Acquisition

of Eletrobras
Distribuição
Rondônia

• Acquisition of
Companhia
de Geração
Térmica
de Energia
Elétrica
(CGTEE

of Eletrobras
Distribuição
Piauí

• Acquisition

of Eletrobras
Distribuição
Acre

• Creation of

Eletronuclear,
Merged of
nuclear area
from Furnas to
Nuclen

Main achievements

1971

2000

2005

2006

- 44 -

Our history

2004

2008

2009

2010

2011

2012

• New Regulatory
of Brazilian
Electric Sector

• Beginning of the
Eletrobras System
Transformation
Process

• PAE (Strategics

• Law 12.111

Energy
Production
SubsidyIsolated
System

Actions Program)

• Plan of

Capitalisation
of Companies of
the Eletrobras
System

• Creation of
Eletrobras
Amazonas
Energia (CEAM)
1997 Manaus
1998

• Strategic Plan
of Eletrobras
System 2010-
2020

• Launch of the
Eletrobras New
Brand

• Higher Uptake
of Resources
Abroad from
Eletrobras

• Greater

Investment of
Eletrobras

• Approval of
Provisional
Measure 579/12

2006

2007

2008

2010

- 45 -

Bromélia
Vriesea saudersii

- 46 -

Profile

- 47 -

- 48 -

Profile

Eletrobras is a quasi-public and publicly traded
corporation; the Federal Government holds
54.46% of its ordinary shares, being the controlling
shareholder of the company. (GRI 2.1; 2.6; 2.8)

We operate in the Brazilian market with seven
generation and transmission companies1, including
50% of Itaipu Binacional, six distribution companies,
one research center and one participation company.
In addition, the company has partnerships in the
development of 63 new ventures through the
Specific Purpose Companies (SPEs), along with
28,437 employees. In November 2012, Eletrobras
announced the intention of taking controlling
interest of Companhia de Eletricidade do Amapá
S.A. - CEA, in the state of Amapá, and Companhia
Energética de Roraima S.A. - CERR, in the state of

Roraima. The Companhia CELG Distribuição S.A.
in the state of Goiás is currently under executive
management of Eletrobras, which will take
controlling interest through the purchase of 51%
of its ordinary shares with voting rights, after the
fulfillment of conditions. (GRI 2.2; 2.5; 2.7; HR10)

Our total installed capacity of generation is of
42,333 MW (35% of country’s total) of which 89.2%
is from low greenhouse gas emissions sources.
Unique in the world, the transmission line grid
for national coverage spans 55,118 km (52% of
country’s total), in high and extra-high voltage, i.e.
230 kV to 750 kV, and the distribution grid spans
199,935 km.

We ended 2012 with approximately 3.7 million
customers.

Eletrobras Amazonas Energia is a generation and distribution company, being considered in both businesses.

- 49 -

Profile

installed Capacity by source

Eletrobras x Brazil

Hydraulic

Wind
Power +
Solar

Total
Clean

Nuclear

Thermoelectric

TOTAL

eletrobras*

% per source in eletrobras’s matrix

Brazil**

% per source in Brazil’s matrix

% eletrobras x Brazil

35,674

84.26%

84,296

69.71%

42.42%

103

1,990

37,767

4,566

42,333

0.24%

1,827

1.51%

4.70%

89.20%

10.80%

100%

1,990

88,113

32,731

120,644

1.65%

72.87%

27.13%

100%

5.64%

100.00%

42.96%

13.97%

35.09%

* Data referring to 2011 and 2012 consider the ratio of Eletrobras’s participation in ventures operated through SPEs and those of shared property.

**The value of the installed capacity of Eletrobras’s nuclear source (1,990 MW) is different than the value found in the BIG by Aneel (2,007 MW). However, since all nuclear power
installed capacity is owned by Eletrobras, a 100% interest was presented.

The Eletrobras companies are located throughout
the country, with its headquarters in Brasília, its
head office in Rio de Janeiro, and representative

offices in Lima (Peru), Montevideo (Uruguay), and
Panama City (Panama). (GRI 2.4; 2.8; 2.9; HR10)

- 50 -

Profile

organizational structure (Gri 2.3)

SPEs

∑

Transmission and
Generation

(100,00%)

Generation

Distribution

Shareholding

(83,71%)

Generation

Distribution

(99,91%)

(99,99%)

(50,00%)

(99,54%)

(99,58%)

(99,47%)

(99,86%)

SPEs

16
16

SPEs

∑

G
T
∑

∑

MANGUE SECO 2 (48,99%)

PAULISTA LAJEADO (40,07%)

CEB LAJEADO (40,07%)

LAJEADO ENERGIA (40,07%)

EMAE (39 02%)

CEEE - GT (32,59%)

TANGARÁ (25,47%)

NORTE ENERGIA (15,00%)

AES TIETÊ (7,94%)

CESP (2,05%)

CGEEP (0,47%)

CDSA (0,13%)

Transmission
CTEEP (35,23%)

CEMAT (40,92%)

CELPA (34,24%)

CEMAR (33,55%)

CEEE - D (32,59%)

COELCE (7,06%)
COELCE (7,06%)

CELPE (1,56%)

EEB (0,11%)

CEA (0,02512%)

CER (0,00262%)

CETINS (0,000026%)

Participation
CELESC (10,75%)

CEB (3,29%)

ENERGISA (2,98%)

COPEL (0,56%)

CELGPAR (0,0701%)

Eletrobras

Business Segment

SPEs**
SPE **

Generation

Transmission

Total

** The amount of SPEs was adjusted,
since there are Special Purpose
Entities that participate in more than
one Eletrobras company.

(100,00%)

(94,26%)

(100,00%)

- 51 -

Seringueira
Hevea brasiliensis

- 52 -

our
Businesses

- 53 -

- 54 -

Our Businesses

Eletrobras operates in the power generation,
transmission, distribution, and trading segments.
Its 16 companies work in an integrated manner,
with policies and guidelines proposed by the
Superior Council of the Eletrobras System (Consise),
developed by the presidents of the companies, and
approved by the appropriate governance bodies.

The main highlights and characteristics
of the operational performance, broken
down by business type for the year 2012,
are presented below. Other information
can be found in the Administration Report
at: http://www.eletrobras.com/ELB/main.
asp?Team={BC80BD9D-8497-49C8-BD52-
61B9626EA294}

Generation

Eletrobras’s Generation business closed 2012
with a total installed generation capacity of
42,333 MW, which represents 35% of the 120,644
MW installed in Brazil (GRI EU1). Approximately
78.5% of this total corresponds to developments,
which are wholly owned by Eletrobras. Another

5% corresponds to projects executed through
Special Purpose Companies (SPEs) or joint
ownership. This also still includes, representing
19% of the total, half of the capacity of Itaipu
Binacional (7,000 MW), which represents 16.5%
of the total.

Energy Matrix - Eletrobras System

Installed in:

Increase of:

Growth of the Installed Capacity (MW)

Clean sources

hydroelectric

Wind

nuclear

thermoelectric

total installed Capacity

2012

37,767

35,674

1,990

103

4,566

42,333

2011

37,086

35,001

1,990

4,535

41,621

681

673

712

(%)

1.8%

1.9%

0.0%

8.7%

0.7%

1.7%

Note: Data referring to 2011 and 2012 consider Eletrobras’s ownership interest in the developments executed through SPEs and in joint ownership.

- 55 -

Our Businesses

Senador
Arnon Afonso
Farias de Mello
(Floresta)

Cidade Nova
São José
Flores

Balbina

Mauá
Aparecida
Electron (TG)
Distrito
Iranduba

Coaracy Nunes

Serra do Navio
Santana

Curuá-Uma

Rio Madeira

Samuel

Santo Antônio

Rio Branco I

Rio Branco II

Rio Acre

Dardanelos

Rio Vermelho

Manso

Tucurui

Araras

Mangue Seco 2

Boa Esperança

Curemas

Sobradinho

Luiz Gonzaga (Itaparica)

Peixe Angical

Serra da Mesa

Xingó

Complexo
Paulo Afonso

Camaçari

Pedra

Funil

LEGEND
System plants Eletrobras

Thermal

SPE Thermal

Hydroelectric

SPE Hydroelectric

Hydro shared Ownership

SPE Eolica

Nuclear

MIDWEST

NORTHEAST

NORTH

SOUTHEAST

SOUTH

Corumbá I

Serra do Facão

Itumbiara

Retiro Baixo

Baguari

Porto Colômbia

Marimbondo

Mauá

Luiz Carlos Barreto de Carvalho (Estreito)

Mascarenha de Moraes (Peixoto)

Furnas

Campos

Funil

Santa Cruz

Angra I
Angra II

Itaipu

Foz do Chapecó

Passo São João

São Jerônimo

Cerro Chato I
Cerro Chato II
Cerro Chato III

Nutepa

Candiota III
Presidente Médici

The beginning of operations in 2012 of UHE2 Passo
São João, with a 77 MW, wholly owned by Eletrobras
Eletrosul, of UHE Santo Antônio, with 3,150 MW
capacity, still in the equipment installation phase,
currently producing 644 MW, of which 251 MW

correspond to Eletrobras Furnass interest; and of
UHE Mauá, with 363 MW, also en the equipment
installation phase, currently producing 352 MW,
of which 173 MW correspond to the interest of
Eletrobras Eletrosul.

Hydroelectric Power Plant (UHE)

- 56 -

Our Businesses

Case

Tapajós Complex
The Tapajós Complex consists of five projects, which will be built at the Tapajós and Jamanxim
rivers; namely, São Luiz do Tapajós, Jatobá, Cachoeira do Caí, Cachoeira dos Patos, and
Jamanxim. In 2012, Eletrobras began conducting the environmental studies for AHE3 São Luiz
and AHE Jatobá, and their engineering studies began in 2009. The company coordinates the
work and is responsible for the environmental licensing. It is also responsible for the social and
environmental aspects of the projects planned for the Tapajós river basin.

Of the total installed capacity of the Company,
89.2% come from clean energy sources, of which
95% is renewable, significantly contributing to
make the Brazilian electric matrix the cleanest and
most renewable matrix in the world.

In 2012, of the total clean and renewable energy

sources installed in the country, 43% belong to
Eletrobras, notably hydroelectric energy and wind farms
and solar energy (both represents currently 0.2%).

The data provided below demonstrate the evolution
of the National Interconnected System’s (SIN)
installed capacity in Brazil. (GRI EU10)

EVOLUTION OF THE INSTALLED CAPACITY IN SIN

eletrobras system’s Capacity x total Planned Capacity (Pde 2020)

Source

Coal

oil

nuclear

natural Gas

hydraulic

Wind

others

total

2012

Capacity (MW)

SIN

Eletrobras

)

(
e
r
a
h
S

2017

Capacity (MW)

SIN

Eletrobras

)

(
e
r
a
h
S

2020

Capacity (MW)

SIN

Eletrobras

3,205

6,643

2,007

10,184

90,971

3,224

6,958

816

870

3,205

9,911

1,990

100

3,412

679

11,659

670

1123

3,395

1,640

3,205

9,911

100

3,412

11,659

670

1123

3,395

1,640

35,312

39 109,872

43,024

39 121,570

45,162

103

8,682

8,689

862

11,532

9,849

862

123,192

39,770

32 155,430

50,715

33 171,138

52,854

)

(
e
r
a
h
S

100

Source: 2020 Decennial Energy Expansion Plan (PDE 2020) of the Energy Research Company - EPE

Note: The 2020 PDE considers the power of Angra 1 Nuclear Power Plant as 657 MW, unlike Eletrobras, which considers it as 640 MW. However, Eletrobras

owns 100% of the installed nuclear capacity. For joint-owned plants, the installed capacity considered was proportional to the ownership interest
held by the parties. The installed capacity was not considered for stand-alone systems in 2012, only the portion that will continue to operate after
the interconnection. Part of this amount will be fueled by natural gas. The decommissioning of Eletrobras CGTEE’s thermoelectric plants, whose
concession will not be renewed (Pres. Médici Phase A, Nutepa, and São Jerônimo) was considered.

Hydroelectric Development (AHE)

- 57 -

Our Businesses

The Belo Monte power plant will be the only project
to be expanded by Eletrobras companies as of
2016; its main powerhouse will be operational
between 2016 and 2019. Of Eletrobras’s installed
capacity expected to be operational in 2013,
power plants under construction provide 11,975
MW (proportional to the ownership interest). In

2013, the interconnection between the stand-
alone systems of Manaus (AM) and Macapá (AP)
and SIN is scheduled to take place, effecting their
incorporation into the generating plants of the
Eletrobras companies according to the Monthly
Operation Program (PMO), which is established by
the National Electric Power System Operator (ONS).

operational performance

EIn 2012, the power plants owned by the
Eletrobras companies generated over 200
million MWh, which represents an increase of
5% in relation to the previous year. To make all
this energy available, Eletrobras, through its
generating companies, operates and maintains
169 power plants, of which 40 are hydroelectric,
123 are thermoelectric, 2 are nuclear, and 4

are wind/solar. Of this total, the company wholly
owns 153. The remaining plants are either joint
ownership plants or SPE partnerships (EU2).

This generation is presented in the two tables
provided below. The first table presents the
generation by wholly owned and joint ownership
plants, and the second table presents the
generation by SPEs.

net energy Production

(Wholly owned and joint ownership, including Itaipu Binacional)

Primary Energy Source

Net Generation (MWh)

Net Generation (%)

Water

Uranium

oil*

Coal

natural Gas

total

179,071,363

16,006,531

7,085,122

2,677,186

472,719

205.312.921

87.22

7.80

3.45

1.30

0.23

100,00

Note: Net Energy Production considers the generation of power plants wholly and jointly owned by Eletrobras, proportional to the ownership interest the

Eletrobras companies have in them; it includes 50% of the generation of UHE Itaipu Binacional. It also includes the thermoelectric generation of
5,827,314.00 MWh supplied by Eletrobras Amazonas Energia, not broken down into oil and gas. According to Eletrobras’s website (GTON – North
Region Technical Operational Group), the generation of Eletrobras Amazonas Energia in 2012 was 4,097,950.08 fueled by oil and 1,428,155.87
fueled by natural gas.

net energy Production

(special Purpose Company - sPe)

Primary Energy Source

hydroelectric*

Wind

oil

total

Net Generation (MWh)

Net Generation (%)

1,686,059

332,543

73,604

2,092,206

80.59

15.89

3.52

100.00

Note: These data consider the generation of power plants in which the Eletrobras companies participate as SPEs, proportionally to the ownership interest

they have in them.

* Not considering the 4th quarter for UHE Santo Antônio (Furnas).

- 58 -

Our Businesses

From the total generated by the Eletrobras
companies, Eletrobras Eletronuclear’s generation
performance stands out for its high availability
factor4. The goal for this factor in 2012, proposed
by the World Association of Nuclear Operators5
(WANO), was 88.97%; Eletrobras Eletronuclear

reached 94.4%. This result was achieved because
of the proper management of power plant
maintenance in avoiding unplanned shutdowns,
particularly at the Angra 2 Power Plant, where no
unplanned shutdowns occurred. (GRI EU11)

Average Efficiency in the Generation of Thermoelectric Power Plants by Energy Source and
regulatory regime (%)

Primary Energy Source

2012

2011

Uranium

oil

Coal

natural Gas

35.0

38.0

26.0

31.0

35.0

37.5

20.9

30.9

Note: Numbers from 2012, includes the following companies: Eletrobras CGTEE, Eletrobras Chesf, Eletrobras Eletronorte, and Eletrobras Furnas.

The low rainfall rates at the end of 2012 caused
a decrease in hydroelectric generation and,
consequently, a significant increase in generation
by thermal energy sources (oil, gas, and coal),
required for the maintenance of energy safety

levels. The two tables provided below present
changes in the Availability Factor compared with
2011, broken down by primary source, for wholly
and jointly owned and SPE plants, respectively. (GRI
EU30)

availability Factor (%)

Wholly-owned plants, joint-ownership and Itaipu Binacional (%)

Primary Energy Source

2012

2011

Uranium

hydroelectric

oil

Gas

Coal

94.4

92.3

99.8

66.1

43.7

96.3

91.9

82.4

73.1

38.0

Note: Numbers from 2012 includes the plants of the following companies: Eletrobras CGTEE, Eletrobras Chesf, Eletrobras Eletronorte, Eletrobras

Eletronuclear, Eletrobras Eletrosul, Eletrobras Furnas, and Itaipu Binacional.

The availability factor is the average time a power plant is available to generate energy.

4
5 WANO is a non-profit organization that aims to integrate companies that operate nuclear power plants with commercial purposes in order to reach the highest nuclear safety

standards. www.wano.info

- 59 -

Our Businesses

availability Factor:

special Purpose Companies - sPes (%)

Primary Energy Source

2012

2011

Wind

hydroelectric

97.7

92.7

98.0

93.0

Note: These numbers include the following wind farms: Cerro Chato and Mangue Seco 2 and the Dardanelos Hydroelectric Power Plant.

Case

Financial compensation and royalties
The Federal Constitution guarantees the provision of a share in the profits arising from the
exploration of water resources used for generating electricity or financial compensation for such
exploration to states, the Federal District, municipalities, and agencies managed directly by the
Federal Government.

In this context, royalties were established as financial compensation for the exploration of
water resources in the Paraná River by Itaipu Binacional for power generation. In 2012, the
company paid approximately US$ 247 million in royalties. In Brazil, the National Treasury is
the agency that receives these royalties in full, and according to the Royalties Act, they are
distributed as follows: 45% to states, 45% to municipalities, and 10% to federal agencies
(Ministry of the Environment, Ministry of Mines and Energy, and National Fund for Scientific
and Technological Development).

Transmission

Eletrobras has 55,118 km of transmission lines (TL),
which represents approximately 52% of the total
existing in Brazil (GRI EU4), from which 52,526 km
are owned by the Eletrobras companies and 2,602
km were won in auctions through SPEs. In 2012, the

Eletrobras companies, operating in partnership,
incorporated 698 km of transmission lines (TL) into
SIN’s basic network, and 182 km of lines operating
independently, totaling 880 km of transmission
lines.

- 60 -

The map for the transmission network owned by the Eletrobras companies is as follows:

Our Businesses

STA ELENA

BOA VIST A

EQUADOR

MACAPÁ

BALBINA

ORIXIMINÁ

JURUPARI

2
2

LECHUGA

MANAUS

SILVES
SILVES

JORGE TEIXEIRA

RURÓPOLIS

S.MARIA

BELÉ M

V. CONDE

XINGU

ALTAMIRA

ENCRUZO NOVO

SÃ O L UÍ S

POR TO VELH O

SAMUEL

ARIQUEMES

DARDANELOS

RIO BRANCO

ABUNÃ

TUCURUÍ
2

AÇAILANDIA

PERITORÓ

MIRANDA

P.DUTRA

C.NETO

PIRIPIRI

ACARAÚ

SOBRAL

FOR TALEZA

IMPERATRIZ

P. FRANCO

TERESINA

BANABUIÚ

BALSAS

B.ESPERANÇA

E.MARTINS

XINGUARA

COLINAS

R.GONÇALVES

TAUÁ

MILAGRES

PICOS

S.J.PIAUÍ

MARABÁ

ITACAIÚNAS
2

CARAJÁS

INTEGRADORA

MOSSORÓ

AÇU

JOÃO CÂMARA

L.NOVA

NATA L

COREMAS

C.GRANDE

J.PESSOA

RECIFE

3
2

MACEIÓ

XINGÓ

SOBRADINHO

GILBUÉS

4
2

BARREIRAS

GURUPI

IRECÊ

ARACAJ U

M. DO CHAPÉU

SAPEAÇU

SA LV ADOR

B.J.LAPA

R.DAS ÉGUAS

IBICOARA

IGAPORÃ

PINDAÍ

FUNIL

BRUMADO

PARANAÍTA

MIRACEMA

JI-PARANÁ

P.BUENO

JUÍNA

CLÁUDIA

SINOP

VILHENA

SORRISO

BRASNORTE

PARANATINGA

S.MESA

N.MUTUM

JUBA

NOBRES

JAURU
2

MANSO

RIBEIRÃOZINHO

CUIABÁ

RONDONÓPOLIS

B.PEIXE

BARRO ALTO

RIO VERDE
NORTE

BRASÍLIA

GOIANI A

PARACATU 4

JATAÍ

RIO VERDE

CORUMBÁ

CHAPADÃO

INOCÊNCIA

C.GRANDE

DOURADOS

GUAÍRA

CASCAVEL / CASCAVEL OESTE

ITAIPU

LONDRINA

UMUARAMA
2

ARARAQUARA

BAURU

2
3

IVAIPORÃ

FIGUEIRA

SÃO PAUL O

F.AREIA

C.NOVOS

ITÁ

LAJES

PO RTO ALEGRE

CURITIBA

BLUMENAU

FLORIANÓPOLIS

S.OSÓRIO/S.CAXIAS

S.SANTIAGO

GARABI

STO. ÂNGELO

MAÇAMBARÁ / S.BORJA

URUGUAIANA
50 MW

ALEGRETE

S.CRUZ

ITAPEBI

M.CLAROS

IRAPÉ

EUNÁPOLIS

T.FREITAS

T.MARIAS

MESQUITA

LINHARES

MASCARENHAS

VITÓRI A

2
2

BELO
HORIZONT E

J. FORA

CAMPOS

C.PAULISTA

RI O D E J ANEIRO

LTs ELETROBRAS SYSTEM

LTs ELETROBRAS SYSTEM (SPE)

LTs OTHER COMPANIES

LIVRAMENTO
70 MW

P.MÉDICI

CAMAQUÃ

PELOTAS

MELO
500 MW

QUINTA

STA.VITÓRIA DO PALMAR

LEGEND

EXISTING

FUTURE

- 61 -

PARANÁ RIVER COMPLEX

PARANAPANEMA RIVER COMPLEX

GRANDE RIVER COMPLEX

PARANAÍBA RIVER COMPLEX

PAULO AFONSO RIVER COMPLEX

Number of circuits

Our Businesses

operational performance

The transmission losses of an electricity company
are calculated according to the difference between
the sum of generation and imports and the
company‘s exports and consumption at the points
of delivery to distributors and local consumers.

According to the Brazilian regulatory model, the
characteristics of a project for a transmission
system are defined during the planning phase for
the expansion when, through feasibility studies, the
alternative that best fits the technical scope, the
smallest level of losses and the smallest overall cost

is selected (investment and loss costs) for the
electric system.

The Brazilian regulatory model does not define
a specific methodology for the calculation
of losses in transmission. However, a unified
methodology for losses has been used in
the Eletrobras companies since 2010 as a
monitoring system, coordinated by Eletrobras.
The methodology is based on electric
calculations, which use power flow simulations.
(GRI EU12)

*technical losses in transmission (%)

Companies

eletrobras Chesf

eletrobras eletronorte

eletrobras eletrosul

eletrobras Furnas

**average for the Companies

*Losses occurred during the transfer of electricity to substations.
** The weighted average is calculated using the power supplied to the system.

2012

2011

2.65

1.65

2.08

2.28

2.19

2.87

1.57

1.83

2.39

2.23

The chart below presents the availability rate for the
transmission lines owned by our companies. This
indicator represents the percentage of hours per

year in which the lines remained available to the
transmission system.

availability rate for transmission lines (%)

Companies

eletrobras Chesf

eletrobras eletronorte

eletrobras eletrosul

eletrobras Furnas

eletrobras companies

2012

2011

2010

99.91

99.92

99.88

98.71

99.55

99.89

99.93

99.90

99.83

99.88

99.90

99.95

99.91

99.87

99.90

- 62 -

Our Businesses

The charts below present, respectively, the total
number of disturbances in the transmission network
of the Eletrobras companies, and in the basic

network of the SIN, as well as those causing load
cuts in excess of 100 MW.

Total Events*

8
5
2
2

4
5
1
1

3,000

2,500

2,000

1,500

1,000

500

2
4
4
2

0
7
6
2

7
4
4
2

9
3
6
2

2
7
2
1

6
3
2
1

2
6
1
1

3
9
0
1

2008

2009

2010

2011

2012

SIN Events

Eletrobras Events

* Source of Data: National System Operator (ONS)

Number of Events per 100 km of network*

2.62

2.49

2.50

2.33

2.79

2.39

3.00

2.80

2.60

2.40

2.20

2.00

2.37

2.24

2.49

2.08

2008

2009

2010

2011

2012

SIN Events

Eletrobras Events

* Source of Data: National System Operator (ONS)

- 63 -

Our Businesses

As shown, the number of disruptions in Eletrobras’s
network dropped from 2.33 to 2.08 disruptions per
100 km of network in the period, representing a
performance improvement of approximately 11%.

This result originates from the policy adopted by
the company for the prioritization of investments
in enhancements and reinforcements in the
transmission network.

Total shutdowns

100

2008

2009

2010

2011

2012

SIN Load Break > 100 MW

Eletrobras Load Break > 100 MW

Total shutdowns per 100 km of network

0.12

0.10

0.08

0.06

0.04

0.06

0.046

0.10

0.095

0.08

0.083

0.075

0.076

2008

2009

2010

2011

2012

SIN Load Break > 100 MW

Eletrobras Load Break > 100 MW

- 64 -

Our Businesses

Concerning the shutdowns, which caused power,
cuts exceeding 100 MW in 2012, the Eletrobras
companies’ performance was similar to the average
performance of SIN’s basic network, with a drop

of 24% during the period, which represents 11
shutdowns.

In terms of the robustness indicator6, the Eletrobras
companies obtained the following performance in 2012:

Robustness Indicator

Load
break>1000MW

Load
break>500MW

Load
break>100MW

Load break

99.5%
99.9%

99.3%
99.6%

95.6%

96.5%

85.7%

89.9%

2012

2011

The robustness indicator aims to assess the capacity of the basic network in supporting contingencies without interrupting energy provision to consumers. This indicator is
calculated based on the ration between the number of disturbances with a given level of load cut and the total number of disturbances that resulted in outages in the SIN.

- 65 -

Our Businesses

Power outages in 2012

In 2012, four major power outages occurred in
Brazil. In the three occurrences that happened
in Eletrobras companies’ facilities, the required
actions were taken promptly. Also in 2012,
the company assessed and addressed the
relevant issues and identified opportunities for
improvement, which then became action plans.

The substations of Imperatriz (MA) and Foz
do Iguaçu (PR) experienced problems in their
protection systems in September and October,
respectively. In Imperatriz, the so called “blind spot”
– the interconnection between two systems not
covered by protection systems – was corrected the
moment it was identified through the replacement
of three current transformers. For Foz de Iguaçu
– where a short circuit took place in a grounding
transformer that caught on fire and caused another
power transformer to malfunction – some of the
protection systems did not work properly, causing
the momentary withdrawal of Itaipu Binacional
from the National Interconnected System (SIN). The
required protection enhancements have already
been implemented.

The third event took place in December at the
Itumbiara power plant (GO and MG). Electrical
discharges in the region caused the circuit breakers
of the substations to open and, consequently,

Distribution
The Eletrobras distribution companies operate
in two states of the Northeast Region and in
four states of the North Region, benefitting
approximately 3.7 million customers7 (5% of the
total in Brazil) through low-, medium-, and high-
voltage networks, which are 199,935 km long
and include 239 substations. The distribution

the transmission lines to shutdown. An analysis
conducted in 2012 pointed out that the present
arrangement in the substation had to be adapted,
considering its current function in SIN.

After these events, the Ministry of Mines and Energy
(MME) determined that all strategic substations
in the country submit to strict inspections of their
measuring, protection, and control systems, based
on protocols similar to those used for nuclear power
plants. Of the substations listed above, all those
belonging to the Eletrobras companies (28 in total)
have already been assessed.

Eletrobras has directed that all its facilities, even
those not listed as priority, will undergo a strict
inspection, following the same method used for
those which were initially considered more relevant.

The company has also determined that any issue
identified be included in an action plan in order to
eliminate the problem promptly. These action plans
may require that authorizations be issued by Aneel
(Brazilian Electricity Regulatory Agency). Aneel then
listed 124 strategic substations in SIN that must
undergo the protocol analysis in approximately 18
months. Of this total, 82 belonged to the Eletrobras
companies. For the remaining SIN substations,
Aneel set a two-year deadline.

concessions serve a total of 463 municipalities. (GRI
EU3; EU4)

In 2012, important projects were kicked off in
the distribution companies, amounting to an
investment of R$ 1.5 billion. Such investments will
ensure that the growing demand for electricity in
the area of the concession is met.

7 According to commercial standards, the company uses the same definition for the terms: Consumer/Customer: a natural or legal person, publicly or privately held, legally

represented, requiring the provision or hiring of energy, or the use of the electric system of the Eletrobras Distribution Companies, assuming the duties stemming from the
provision of such service to their consumer unit(s), according to the standards and agreements, thus becoming the holder. However, whenever this issue came up, we defined
“customers” as those individuals responsible for a consumer unit registered as a company and “consumer” as those individuals responsible for the consumption of energy in this
consumer unit. In a household, for example, there is only one customer; however, there are many consumers.

- 66 -

Our Businesses

Numbers of consumers

3,653,609

Concession area (Km²)

2,264,565

Market (GWh)

15,236

LEGEND

Numbers of consumers

Market (GWh)

50,000 a 350,000

350,001 a 650,000

650,001 a 950,000

950,001 a 1,250,000

5,000 a 4,501

4,500 a 3,501

3,500 a 2,501

2,500 a 1,501

1,500 a 500

under 500

- 67 -

Our Businesses

extension of lines/distribution networks
(km)

number of Customers in distribution (unit)

Number of Customers

2012

2011

Eletrobras companies

ed acre

ed alagoas

ed Piauí

ed rondônia

ed roraima

eletrobras amazonas energia

eletrobras total

In 2012, the registry included 163,000 new
customers, representing a growth of 4.5%
compared with 2011.

2012

16,591

39,816

66,142

52,130

3,143

22,113

199,935

residential

industrial

Commercial

rural

Government

Public lighting

Utilities

own Companies*

total

3,103,062

2,965,428

12,903

266,020

222,516

38,670

2,212

7,302

924

12,816

254,915

210,358

37,366

1,902

6,094

857

3,653,609

3,489,736

* The number of customers includes own consumption of all the Companies

operational performance

From 2008 to 2012, a more detailed monitoring
plan was developed and implemented, aiming
to decrease distribution-related losses. This
monitoring allowed for a yearly increase in
operations in the area of inspections, the
regularization of illegal consumers, and planned
enhancements, decreasing the percentage of

distribution-related losses. It is estimated that
the evolution of Energia+, the main loss reduction
project (in terms of investments), will boost this
result and enable further reductions in the coming
years. In 2012, actions to fight loss of energy
allowed for a reduction of 3.27 percentage points in
the general loss rate. (GRI EU12)

Global Losses over the Energy Injected (%)

36.03

35.18

34.58

34.28

31.01

2008

2009

2010

2011

2012

Global Losses over the Energy Injected
by the Distribution Companies (%)

- 68 -

Our Businesses

The main actions that produced this result were:
the inspection and regularization of consumer
units (UC), enhancements in the billing process,
and the re-registration of the public lighting load.
Additionally, changes to the structure, aiming at

the correct calculation and charging of unbilled
energy, enabled the completion of 72,000 processes
for irregular measuring, with the recovery of
approximately 340 GWh.

DISTRIBUTION LOSSES

Companies

ed acre

ed alagoas

ed Piauí

ed rondônia

ed roraima

eletrobras amazonas energia

Non-technical losses (%)

Technical losses (%)

TOTAL

2012

2011

9.1

18.6

17.2

10.1

5.6

31.3

11.6

21.5

20.6

15.0

9.2

34.1

2012

11.9

8.4

13.2

12.7

6.6

7.7

2011

11.9

8.4

12.5

12.7

6.6

7.7

2012

2011

21.0

27.0

30.4

22.8

12.2

39.0

23.4

29.9

33.0

27.8

15.8

41.8

In 2012, the distribution department more closely
monitored quality rates. The investments made
to improve service quality involve programmed
interventions in the network. Thus, between 2009
and 2012, a drop in the accidental interruption
rate was recorded; however, there was a rise in
programmed shutdowns, which prevented any
improvement in this rate to be registered. This rate
is expected to improve in the coming years as the
investment matures and Manaus (AM) is included in
the interconnected system.

DEC and FEC refer, respectively, to the number of
hours and the frequency in which a consumer unit

had no electricity for a given period of time. In 2012,
in the Eletrobras distribution companies combined,
these indicators remained at the same level as the
previous year. However, there were a few advances,
such as in the case of Eletrobras Amazonas Energia,
which registered a rate of 60 hours for DEC and 50
interruptions for FEC, whereas Aneel accepts a rate
of 65 hours and 62 interruptions.

These rates are made up of weighted averages,
calculated according to the number of customers
for each company. The progression of the DEC and
FEC levels for the Eletrobras companies is provided
below:

Power outages per Consumer (deC) - hour/Year

ED Acre

ED Alagoas

ED Piauí

ED Rondônia

ED Roraima

65.9

42.6

44.6

26.3

25.5

20.6

34.2

41.9

40.9

31.4

38.6

31.8

11.9

12.7

17.7

42.6%

3.1%

-18.4%

-18.7%

-6.3%

Eletrobras
Amazonas
Energia

Consolidated*

60.1

54.7

72.0

9.9%

38.7

39.3

40.6

-1.5%

Year

2012

2011

2010

variation
2012x2011
(%)

* Weighted average of the Eletrobras companies (hours of power outages per number of consumers).

- 69 -

Our Businesses

CTo improve these rates, pruning is being
done more often, more powerful distribution
transformers are being replaced, and new
substations are being built. The installation and

maintenance of reclosers, feeders, and regulators
in the network, along with other equipment, is
planned, in addition to the review of protective
equipment adjustments. (GRI EU28; EU29)

Case

Awareness Campaign
In recent years Eletrobras Chesf and ED Alagoas have registered a significant number of
shutdowns caused by slash-and-burn activities in the sugarcane fields near transmission
and distribution lines. In an attempt to reduce these occurrences, the Companies conducted
campaigns associated with this topic through technical visits to the sugarcane processing
plants; held workshops to raise awareness among the surrounding communities, and developed
education activities and media initiatives in local TV and radios stations. In the 2011/2012
harvest campaign, 12 sugarcane plants were included representing those with highest potential
of shutdown occurrences in the previous harvesting periods. As a result, Eletrobras Chesf
recorded five shutdowns in the 2011/2012 harvest, 82% less than the total recorded for the
2008/2009 harvest, with 28 occurrences. In the case of ED Alagoas, for the same period, the
number of events dropped from 41 to 8.

The campaigns are conducted in partnership with IBAMA, the Environmental Institute for
the state of Alagoas (IMA), the Sugarcane Industry Union in the state of Alagoas (Sindaçúcar
- AL) and Braskem. When the number of power outages is reduced, the social and economic
repercussions of this problem are reduced as well, since it often affects entire cities, including
small and large consumers, with influence in the cost reduction of companies and the
reduction of possible administrative sanctions and expenses with maintenance. (EU28)

Frequency of Power outages per Consumer (FeC) - number of Power outages/Year

Year

2012

2011

2010

variation
2012x2011 (%)

ED Acre

ED Alagoas

ED Piauí

ED Rondônia

ED Roraima

Eletrobras
Amazonas
Energia

Consolidated*

55.3

45.2

43.9

20.1

16.7

14.3

26.1

30.0

32.1

26.0

28.9

29.7

26.0

28.9

29.7

50.2

51.1

59.8

22.3%

20.4%

-13.0%

-10.0%

13.9%

-1.8%

31.4

31.5

33.5

0.3%

* Weighted average of the Eletrobras companies (number of power outages per number of consumers).

delinquency

The total active delinquency of customers, in terms
of the historical amount due, with no fees, interest,
or monetary indexation added, was R$ 1.173

billion, of which R$ 770.3 million (equivalent
to 65.7%) corresponds to private-class
customers8.

They include the residential, commercial, industrial, and rural categories.

- 70 -

Our Businesses

The measures that caused the drop in delinquency
levels relate to the implementation of systematic
operational actions for the disconnection of service
due to non-payment, the blacklisting of consumers

in credit restriction agencies (Serasa and Cadin),
and lawsuits. Moreover, significant debits were
solved and campaigns to promote non-delinquency
were executed.

Consolidated delinquency of the distributors (r$ thousand)

Consolidated Non-payment of the distribution companies (R$ thousands)

INAD (%)

2012

2011

Variation
2012x2011 (%)

2012

2011

Class

residential

Commercial

industrial

rural

Municipal Government

359,118

232,059

153,288

134,395

185,212

230,392

72,683

69,317

55%

14%

-20%

12.7%

9.5%

17.2%

36.3%

29.8%

17.5%

9.6%

10.1%

10.3%

24.4%

44.0%

41.3%

18.6%

9.1%

state Government

127,106

111,757

14%

Federal Government

Utilities

237,998

226,225

Public lighting

37,566

37,732

total

1,172,971

1,041,877

13%

107.6%

128.8%

22.5%

17.3%

27.6%

18.9%

Note: INAD is the percentage obtained by the balance of delinquency inventory9 divided by the 12-month sales.

energy demand management
Due to fact that Brazil has a vast land area, the
generating plants are distant from the major
consumption centers, and the distribution of all
the energy they generate is achieved through
transmission lines which ensure service for the
growing demand. In this context, the Eletrobras
companies play a central role in SIN’s planning,
operation, and maintenance.

The Eletrobras companies work in compliance with
the determinations of the National Electric Power
System Operator (ONS), the agency responsible for
handling the energy inventory to ensure the safety
of the continuous energy supply across the country.
The Companies are responsible for managing

their demands and for ensuring compliance with
the regulatory agency, in addition to serving the
economic, social, and environmental interests of
the Eletrobras companies.

The Eletrobras companies have been investing
in the purchase and installation of equipment
monitoring systems in order to anticipate failures,
thus minimizing the risk of personal accidents and
events in SIN. In addition, this will increase the
availability of equipment through the prevention
of unnecessary shutdowns, since maintenance is
provided whenever necessary and not at fixed time
periods. (GRI EU6)

9 Delinquency inventory corresponds to the total installements overdue, outstanding, prior to the period selected.

- 71 -

Cajuí
Anacardium giganteum Frutos

- 72 -

sectoral
Programs

- 73 -

- 74 -

Sectoral Programs

The Eletrobras companies support important initiatives
of the Federal Government, its major shareholder,
and manage sectoral programs and funds that serve
various areas of the electric utilities sector. These
programs aim for the universal access to energy,
energy efficiency, and the sustainable development
of the country. Examples of such programs include

the following: Luz para Todos (National Program for
Universal Access to and Use of Electricity), the National
Program for the Conservation of Electricity (Procel),
and the Alternative Energy Source Incentive Program.
(Proinfa) (GRI EU23)

The performance of each program in 2012 is as
follows:

National Program for Universal Access to and Use of Electricity
(Luz para Todos)

In addition to taking energy to the rural population,
Luz para Todos offers solutions by using electricity
to trigger social and economic development in
low-income communities, thus contributing
to a reduction in poverty and an increase in
household income. Access to electricity enables the
integration of health, education, water supply, and
basic sanitation services and the social programs
promoted by the Federal Government. The program
also anticipates the free installation of up to three
electricity points (one per room), two power outlets,
conduits, light bulbs, and other materials necessary.

By enabling access to electricity, the program helps
retain families in rural areas, improving their quality
of life. Access to electricity encourages families to
purchase home appliances and electric farming
equipment, increasing their income and improving
basic sanitation, health, and education, thus
strengthening the economy in these communities.

Priority is given to serving communities in the
Citizenship Territory Program or through the
Brazil Poverty Eradication Plan, as well as rural
settlements, Indigenous communities, quilombolas,
communities located within extractive reserves
or within areas intended for power generation or
transmission developments whose responsibility
does not fall upon the respective utility company, in
addition to schools, health centers, and community
water wells.

Luz para Todos is coordinated by the Ministry of
Mines and Energy, operated by Eletrobras, and
executed by power utility companies, licensed
distribution companies, and rural electrification
companies (executive agents), with the
participation of state governments.

The resources required to develop the program
are provided by the Federal Government’s Energy
Development Account (CDE1) through an economic
subsidy and by the Global Reversion Reserve (RGR2)
through financing; by the state governments
involved; and by the executive agents. By the end of
2012, these resources amounted to R$ 19.8 billion,
of which R$ 14.3 billion (72%) corresponds with
industry-specific resources managed by Eletrobras.

It is estimated that more than 450,000 direct and
indirect job opportunities have been generated
as a result of the implementation of this program,
considering the prioritization of the use of local
labor and the purchase of local materials and
equipment manufactured in the areas surrounding
the locations served.

In 2012, the program completed 120,131 new
installations, totaling 3,022,529 connections since
2004 and corresponding to 97% of the overall
target of 3,121,477 connections and over 14.7
million people who benefitted in Brazilian rural
areas.

Sectoral fund appropriated for promoting energy development in states, projects involving universal access to energy services and the provision of subsidies to low-income
consumers, and the expansion of natural gas pipelines to serve the states where such network is not present.
Reserva Global de Reversão (RGR) is used to finance the National Program for Universal Access To and Use Of Electricity (Luz para Todos), in addition to energy efficiency projects,
in the scope of the National Program for the Conservation of Electricity (Procel).

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Sectoral Programs

Eletrobras’s commitments alone have resulted in
2,499,199 connections, which correspond to 92%
of the total connections agreed upon between the
Executive Agents and Eletrobras, as well as:

• the connection of consumer units in rural areas, in

5,410 municipalities in Brazil;

• the construction of 632,291 km of high- and low-

voltage power lines;

• the installation of 6.6 million utility poles;

• the installation of 952,145 transformers;

• the installation of 2,078 photovoltaic systems.

Under this program, several situations were
identified in which services were subject to the
execution of projects with special characteristics,
since the locations served were far from existing
power distribution lines, in difficult to reach areas,
and usually with a low population density. In
these cases, complementing the Construction
Work Programs that predominantly make use
of traditional distribution networks, the Special

Projects were created, as established by MME
Ordinance No. 60, of February 12th, 2009, focusing
on extremely isolated populations in remote areas
and in a sustainable manner, prioritizing the use of
Renewable Energy Sources (FRE).

Since 2010, Eletrobras has signed, with the
Executive Agents, 18 agreements related to Special
Projects, using resources from the CDE in the
amount of R$ 7.6 million, and aiming at serving
377 consumer units via decentralized power
generation, using FRE and the building of small
sections of distribution lines (mini-grids). In 2012,
the connection of 255 of these consumer units was
verified by physical inspections.

In 2012, R$ 850 million was disbursed, of which R$
650 million was provided by CDE and R$ 200 million
by RGR. Since 2004, R$ 12 billion (provided by CDE
and RGR) was disbursed, from a total contracted
amount of R$ 14.3 billion; that is, 84% of the total
resources contracted. The table below shows the
total resources contracted and disbursed from 2004
to 2012, broken down by region.

Region

north

northeast

Midwest

southeast

south

Brazil

Industry-specific Resources through 12/31/2012 (R$ million)

Contracted

Disbursed

CDE

RGR

CDE+RGR

CDE

3,133.82

318.29

3,452.11

2,512.85

RGR

275.18

CDE+RGR

2,788.03

5,676.91

942.20

6,619.11

4,908.84

818.25

5,727.09

765.84

590.82

1,356.66

678.78

526.85

1,205.63

847.95

1,191.42

2,039.37

724.44

941.74

1,666.18

339.87

511.90

851.77

266.09

374.81

640.90

10,764.39

3,554.63

14,319.02

9,091.00

2,936.83

12,027.83

The table below shows the number of connections
contracted and registered in the Project
Management System of Luz Para Todos and the

number of Special Projects physically verified by
Eletrobras, broken down by region:

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Sectoral Programs

number of Connections through 12/31/2012

Region

north

northeast

Midwest

southeast

south

Brazil

Contracted between the Executive Agents and
Eletrobras

Registered in the LPT System + Physically verified
in Special Projects

533,244

1,388,860

198,056

422,643

180,613

2,723,416

437,610

1,286,370

178,490

417,453

179,531

2,499,454

*Executive Agents are the utility companies, licensed distribution companies, and rural electrification companies.

North
437.610 Connections

BRAZIL
2.499.454 Connections

Midwest
178.490 Connections

LEGEND

State with over 25,000 connections

25,001 < Connections in the State < 50,000

50.001 < Connections in the State < 75.000

75.001 < Connections in the State < 100.000

100.001 < Connections in the State < 200.000

State with over 200.000 connections

Northeast
1.286.370
Connections

Southeast
417.453 Connections

South
179.531 Connections

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Sectoral Programs

Technical cooperation to serve remote regions

Aiming to support distribution companies in
serving remote regions through systems based on
Renewable Energy Sources, Eletrobras maintains
a technical cooperation project with the Inter-
American Institute for Cooperation on Agriculture
(IICA).

Within the scope of this cooperation project,
computer tools were developed to manage and
financially analyze rural electrification projects. This
involved providing training to the utility companies,
thus combining efforts and seeking to prepare
and integrate actions to plan, develop, and assess
projects involving decentralized power generation
systems, with a goal of universal access to energy.

Also within the cooperation project, the company
provided support to Eletrobras Amazonas Energia
in the execution of 12 Special Projects, which aim
to provide 222 families with decentralized purely
photovoltaic power generation systems. This
support is provided from the beginning of executive
projects through the monitoring, assessment of

operational data, and improvement of project
management.

Since 2007, activities have also been developed
to support ED Acre in order to enhance the
management and monitoring of 103 individual
photovoltaic systems (24 kWp), installed by the
Luz Para Todos Program in the Chico Mendes
Extractive Reserve, located in the municipality of
Xapuri.

Aiming to foster the use of energy in remote
systems, Eletrobras and the Department of
Family Production and Agroforestry Extension
(Seaprof), of the Government of the State of
Acre, have signed a Protocol of Intentions for
the implementation of Community Production
Centers (CCPs), using generation systems fueled
by Renewable Energy Sources, aiming at the
socio-economic empowerment and development
of local communities and the associations
formed by small agricultural and forest and
extractivist producers of the state of Acre.

Alternative Energy Source Incentive Program (Proinfa) (GRI EU7)
Proinfa, established by Law No. 10,438/2002, is the
largest global program conceived to foster the use of
alternative energy sources. Eletrobras is responsible
for the trading of the energy generated by the projects
contracted within the Program for a period of 20 years.
As of December 31, 2012, a total of 2,656.57 MW had
been added to the Brazilian energy matrix by Proinfa
through 120 new developments, of which 60 were
Small Hydroelectric Power Plants (PCHs) (1,159.24
MW), 41 were wind farms (963.99 MW), and 19 were
biomass-fueled thermal power plants (533.34 MW).

Its implementation has contributed to
diversifying the national energy matrix,
in addition to fostering the creation of
approximately 150,000 direct and indirect job
opportunities across the country, generating
significant industrial advances and the
nationalization of cutting-edge technology.
Moreover, it is estimated that the program
facilitates a reduction of greenhouse gas
emissions of approximately 2.5 million tons of
CO2eq/year.

Source

PCh

Wind

Biomass

total

Result from the Hiring

Total operational developments until 12/31/2012

Developments

Power (MW)

Developments

Power (MW)

144

1.191,24

1.422,92

685,24

3.299,40

120

1159,24

963,99

533,34

2656,57

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Sectoral Programs

National Program for the Conservation of Electricity (Procel)

Procel is a program by the Federal Government,
coordinated by the Ministry of Mines and Energy,
and designed to foster the efficient use of electricity
in the country and to fight its waste. Eletrobras,
which runs the Executive Department of Procel,
is responsible for planning and executing the
actions of the program and providing technical and
financial support.

In 2012, with investments of approximately R$ 28.4

million in projects and the funding of infrastructure
and labor, not including the resources from the
Global Reversion Reserve (RGR), Procel contributed
to saving approximately 9.100 GWh. This result
corresponds to the annual consumption of nearly
4.8 million households and represents a postponed
investment in the electric utilities sector of over
R$ 928 million, based on the marginal cost of
expansion (CME3). (GRI EU7)

PROCEL - Energy Saved (GWh/ year)

10000

9000

8000

7000

6000

5000

4000

3000

2000

1000

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

To achieve these results, the program includes
several areas, in both the public and private sectors,

through initiatives that affect society in general, for
example:

Case

Procel GEM - Municipal Energy Management
In partnership with Procel, through the subprogram Procel GEM, Eletrobras Eletronorte began,
in 2012, to prepare the Municipal Energy Management Plans (Plamges4) in the following cities.
Belém (PA), Bragança (PA), Capanema (PA), Porto Velho (RO), and Cacoal (RO). Also in the scope
of this partnership, 16 Municipal Energy Efficiency Agents in 15 municipalities of Mato Grosso
and 17 Agents in 15 municipalities of Maranhão were trained using the Community Learning in
Municipal Energy Management Project5. Including all participating municipalities, this action
originated an annual savings of R$ 938,199.00 and 1,245.55 MWh. (GRI EU7)

3 CME is the additional cost to supply the increased demand, considering adjustments to the construction work program; that is, it represents the expected cost of the expansion

of the energy generation plants
Plamge, a PROCEL methodology, is an instrument to support municipal public administration that enables the knowledge, management, planning and control of use of
electricity by optimizing consumption, identifying opportunities for savings. The software used as a tool of this methodology can calculate, allocate and present the results of
energy and resources savings achieved through the implementation of energy efficiency measures.
The Learning Communities Project in Energy Management aims at training Municipal Agents in Energy Savings. The agents are technicians of various municipalities with
population of up to 30,000, in a given region, who are trained in energy efficiency concepts, in developing Action Plans for their cities, in implementing these actions and in
exchanging experiences and solutions to their problems, such as waste of electricity. At the end of each project, the trained Agents report the actions taken and demonstrate the
savings obtained through their energy bills and their historical comparison of consumption.

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Sectoral Programs

Main aCtivities oF the national ProGraM For the Conservation oF eleCtriCitY

Programs Activities

Results

9,000 GWh in energy savings, 36% above 2011, which
is equivalent to the annual consumption of 4.77
million households. it also avoided the emission
of 624,000 tons of greenhouse gases, which is
equivalent to the emissions of 214,000 vehicles in a
year (EU7 and EN7).

eletrobras
ProCel

It fosters efficient energy use and fights its waste
in the main consumption industries in Brazil:
ProCel GeM – Municipal energy Management,
Sanear – Program for the Efficient Use of Energy in
environmental sanitation, and ePP – Program for
Energy Efficiency in State-owned Buildings address
the consumption of the Government and of the
services it provides; ProCel indústria – industrial
Energy Efficiency Program, for the industrial sector;
ProCel reluz – Program Concerning Public lighting
and Efficient Traffic Light mainly concentrated on
public lighting; PROCEL Edifica – Program for Energy
Efficiency in Buildings handles the consumption
of commercial and residential buildings; and
ProCel selo – ProCel eletrobras energy saving seal
covers the residential sector and a few industrial
and commercial products. ProCel educação and
PROCEL Info - Brazilian Center for Energy Efficiency
information operate cross-sectionally in the
consumption sectors.

ProCel
GeM

it aims to help city governments and remaining
government areas to save energy. it helps public
administrators in the energy management and
efficient use in the consumer units for which they are
responsible; it identifies opportunities to minimize
waste; and it aids in the monitoring of energy-
related expenses, therefore obtaining more financial
resources to be invested in other priority areas.

in 2012, it served 37 municipalities of four Brazilian
states directly, and another 50 indirectly. it generated
energy savings of 61,950 MWh in 2012, of which
1,245.44 MWh/year through the Community
learning in Municipal energy Management Project
and 60,705.03 MWh/year through PLAMGES -
Municipal energy Management Plans in 50 city
governments in Minas Gerais.

ProCel
reluz

It fosters the development of efficient public lighting
and traffic light systems, as well as the lighting of
public urban spaces, generating energy savings and
improving safety in public roads and quality of life in
Brazilian cities.

ProCel
sanear

ProCel
info

It fosters actions that aim at the efficient energy
and water use in environmental sanitation systems,
including consumers; it encourages the efficient use
of water resources, as a strategy to prevent water
shortage for hydroelectric power generation; and it
contributes to the universalization of environmental
sanitation services, with lower costs to society and
additional benefits to the health and environmental
areas

developed with resources donated by the Global
environment Facility (GeF) to the Brazilian
government, through the international Bank for
reconstruction and development (iBrd), with
the support of the United Nations Development
Programme (UNDP), the Brazilian Center for Energy
Efficient Information gathers, generates, organizes,
and discloses the qualified information produced
in the country on energy efficiency, whose main
product is the ProCel info Portal (www.ProCelinfo.
com.br).

in 2012, over 122,000 public lighting points were
replaced in 96 municipalities, distributed across
seven Brazilian states, and total energy savings and
reduced demand, in 2012, of 154.38 GWh and 35.18
MW, respectively. In 2012, 44 157W LED lamps were
installed in UFJF’s campus and lighting tests were
conducted in the field; prototypes for LED lamp
drivers were also developed in the lab.

integration of additional three labs to the lenhs
Network - Laboratories for Energy and Water
Efficiency in Basic Sanitation. Federal University
of Tocantins – UFT, Universidade do Planalto
Catarinense – UNIPLAC, and Federal University
of Rio de Janeiro – UFRJ, totaling, in 2012, nine
laboratories in the network, in addition to the launch
of the Pumping System Manual: Energy Efficiency,
and of the SWMM Program Manual - Storm Water
Management Model, of EPA - U.S. Environmental
Protection agency, as well as the translation and
adaptation of its respective software to Portuguese.

over 520,000 visits on ProCel info Portal in 2012,
7.4% above 2011 (489,000 visits). the registration of
5,603 new users in the Portal in 2012, totaling 21,874
since its creation. the release, in 2012, of over 1,300
stories on energy efficiency through newsletters

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Sectoral Programs

ProCel
Edifica

it develops activities that aim at the promotion and
incentive of energy efficiency concepts in buildings
and at the support and enablement of the “energy
Efficiency Law” (Law 10,295/2001), in relation
to efficient buildings, and it contributes to the
expansion, in an environmentally friendly manner, of
the housing sector in the country, reducing operating
costs in the construction and use of buildings.

ProCel
ePP

it fosters energy conservation actions in state-owned
federal, state, and municipal buildings, in addition to
disseminating techniques and methodologies for the
replication of projects in the following areas: lighting
systems; hvaC systems; any other system fostering
reduced energy consumption, and technological
innovation in building facilities and labs destined to
energy conservation studies in building facilities

ProCel
indústria

it supports industrial segments in the enhancement
of the energy performance in their facilities, with the
participation of various agents of the sector, such as
the national Confederation of industry (Cni), state
industry federations, universities, trade associations,
energy companies, and material, equipment, and
service suppliers, among others

ProCel
educação

ProCel
selo

it aims at enriching the formal educational process
in the country with complementary information,
as to promote energy conservation measures
among teachers and students, in the three levels of
education.

A simple and efficient tool, which allows consumers
to identify the most efficient equipment and
appliances available in the market, in addition to
encouraging the technological development and
enhancement of such products.

- 81 -

the offering, in 2012, through r3e - network for
Energy Efficiency in Buildings, of 34 training courses
concerning the use of the technical regulations
for the Assessment of Energy Efficiency Levels in
Buildings (RTQ-C and RTQ-R), totaling 621 qualified
professionals.
the launching of a multi-zone version of domus
PROCEL Edifica - Program for the Thermal-energetic
simulation of Buildings.
Participation and 14th general place achieved by the
Brazilian prototype ekó house, in solar decathlon
europe 2012, in Madrid.
development of the Portal for the network for energy
Efficiency in Buildings (R3E), a hotsite within PROCEL
info.
884 labels granted to the residential class
Autonomous Housing Unit – UH, 08 labels granted
to the multi-family residential class, 02 labels
granted to the residential class - common area, and
15 labels granted to the commercial class, through
a partnership with inmetro, in the scope of the
Brazilian Labeling Program - PBE Edifica.

through the participation in the sustainable
Esplanade Project, in 2012, the 1st Workshop for the
sustainable esplanade Project was held, with 100
members, especially from the Federal Government.
in this occasion, as to raise the awareness of this
audience to the rational use of energy and water in
their facilities, ProCel ePP taught two mini-courses
on the diagnosis of energy efficiency in state-owned
buildings, in the surrounding, lighting, and air-
conditioning areas.

analysis, in 2012, of 11 energy diagnosis and
self-diagnosis of large industrial plants, planned
energy savings of 2.2 million kWh. The launch
of autoavaliação, a software that allows the
identification of potential energy conservation
in micro and small companies in the state of rio
de Janeiro. The launch of the Manual How to Use
less energy in small Companies - Practical energy
Efficiency and of the Primer on Energy Efficiency
in lan houses. analysis, in 2012, of 11 energy
diagnosis and self-diagnosis of large industrial
plants, planned energy savings of 2.2 million kWh.
the launch of autoavaliação, a software that allows
the identification of potential energy conservation
in micro and small companies in the state of rio
de Janeiro. The launch of the Manual How to Use
less energy in small Companies - Practical energy
Efficiency and of the Primer on Energy Efficiency in
lan houses.

the implementation of Projeto energia que
Transforma, benefitting 26,000 students in four
Brazilian states in 2012, which is broadcast by the
Futura channel of tv aberta.

8.88 thousand GWh of energy savings in 2012,
approximately 34% above that of 2011. inclusion, in
2012, of the following categories: table, wall, stand,
and box fans to the equipment addressed by selo
ProCel.
Granting of selo ProCel eletrobras to 36 models of
equipment.

Urucum
Bixa orellana

- 82 -

our
structure

- 83 -

- 84 -

Sectoral Programs

Principle of the Global Compact: 10

Corporate governance
We pursue continuous improvement of our
management practices, with a focus on transparent
and appropriate procedures for the markets where we
operate.

Eletrobras has a corporate governance model that
is responsible for the guidelines that direct its
business and which is grounded on international
management standards. Eletrobras’s governance
structure is made up of the General Shareholder
Meeting, Audit Committee, Board of Directors,
Executive Board, Internal Audit, and Board Advisory
Committees.

Eletrobras’s administration is the responsibility
of the Board of Directors and the Executive
Board, formed exclusively by Brazilians (GRI 4.7).
Requirements for the selection of members of the
highest level of Eletrobras’s corporate governance
involve recognized knowledge of the electric power
sector, of public administration, and of the financial
and capital market, as well as moral rectitude.

As quasi-public Federal Corporation, Eletrobras is
governed by the Corporations Act (Law Number
6,404, of 1976), by its Creation Act (Law Number
3,890-A, of 1961), by its Bylaws, and other
provisions set forth in federal laws. Our shares
are traded in the stock markets of São Paulo,
Madrid, and New York, in compliance with the

outstanding initiatives

Constantly focusing on reaching a high governance
standard, Eletrobras has been implementing several
initiatives. Some actions, ongoing since 2012, are
highlighted below:

• Implementation of the process for assessing of

the performance of the Board of Directors and of
the Executive Board in all Eletrobras companies.
(GRI 4.10)

• Standardization and updating of the Bylaws of
the distribution, generation, and transmission
companies

rules established by the Brazilian Securities and
Exchange Commission (CVM) and the São Paulo
Stock Exchange (BM&FBOVESPA S.A), in addition
to complying with the norms of the Securities and
Exchange Commission (SEC) and of the New York
Stock Exchange (NYSE) in the United States; and
by Latibex, the Madrid Stock Exchange, in Spain.
The transparency in Eletrobras’s management
is confirmed by its compliance with the North-
American Sarbanes-Oxley Act (SOX). In New
York, the company also trades in the American
Depository Receipt (ADR) level 2, which requires
compliance with the North-American US GAAP
accounting standard.

Eletrobras has been listed for six years in
BM&FBOVESPA’s corporate governance level 1,
which is a special segment that requires compliance
with specific rules applicable to administrators and
shareholders. Among other level 1 practices, there
is the 80% tag-along right for common shares
which, according to the legislation, ensures that all
companies established under corporate law must
offer common shareholders the right to sell their
stake for at least 80% of the amount received by
the majority shareholder in the case of the company
being sold. Dividends ensured to common and
preferred shareholders are established in its Bylaws.
(GRI 4.1)

• Creation of two committees to support the Board

of Directors of the holding.

• Development of a system to manage Eletrobras’s

senior-management information.

• Structuring of the “Program for the Development

of Advisory Board Members Representing
Employees.”

- 85 -

Governance structure (Gri 4.1; 4.2; 4.3; 4.5; 4.6; 4.7; 4.9)

Sectoral Programs

Audit Committee

Internal Audit

Sustainability
Committee

General Shareholder
Meeting

Board of
Directors

Chairperson of the
Board

Compensation and
People Management
Committee

Audit and Risk
Committee

Administrative
Board

Finance and
Investor Relations
Board

Generation
Board

Transmission
Board

Distribution
Board

General Shareholder Meeting:

The Annual General Shareholder Meeting is held
within the first four months following the end of
the fiscal year. Extraordinarily, the Annual General
Meeting is held according to the law and at the
request of the Board of Directors.

In 2012, two Annual General Meetings were held.
One was a regular meeting, which approved the
financial statements for fiscal year 2011; the use
of the net profit for the year; the election of the
members of the Board of Directors and of the Audit
Committee and their respective alternates, whose
terms end at the first Annual General Meeting
of 2013; and the monthly compensation of the

managers and members of the Audit Committee.
The other was a special meeting, which determined
the election of the member of the Board of Directors
designated to represent minority shareholders;
and the extension of the concession agreements of
Eletrobras Chesf, Eletrobras Eletronorte, Eletrobras
Eletrosul, and Eletrobras Furnas.

Board of Directors (BD)
The Board of Directors is a collegiate deliberation
body elected by the General Shareholder Meeting
and formed by up to 10 members, seven of whom
are appointed by the majority shareholder; one
is appointed by the minority shareholders of
common shares; one is appointed by the minority

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Sectoral Programs

shareholders with preferred shares; and one is a
representative of the employees.

In 2012, the Board of Directors had nine members
with one-year mandates, eligible for reelection,
among: one was an independent Board member.

The president of Eletrobras is part of the Board of
Directors, nevertheless he does not cumulatively
hold the position of chairman of the board;
therefore, he is the only non-executive member
of the board (GRI 4.3). The chair on the Board
to be occupied by the member appointed by the
minority shareholder with preferred shares was not
occupied because this shareholder did not have the
minimum number of shares required by the current
legislation, which represents 10% (ten percent) of
the social capital.

The Board has Internal Regulations that defines the
scope of its functions and that of its members. An
ordinary meeting is held on a monthly basis and
extraordinary meetings are convened whenever
necessary. In 2012, 16 meetings were held.

The Internal Audit Committee is associated with
the Executive Board, along with the following
committees: Sustainability Committee of the
Eletrobras companies; Audit and Risk Committee,
and the Remuneration and Personnel Management
Committee. (GRI 4.1)

structure of the Board of directors

10 positions, nine of which are occupied, one is an
independent member, one is an executive member, and
one is a representative of the employees

one-year mandate, eligible for reelection

ordinary monthly meeting and extraordinary meetings
whenever required

Composition of the BD in 2012 (GRI 4.3):
• Beto Ferreira Martins Vasconcelos
• José Antonio Corrêa Coimbra
• José da Costa Carvalho Neto (executive board

member)

• Lindemberg de Lima Bezerra

• Marcelo Gasparino da Silva (independent board

member)1

• Márcio Pereira Zimmermann (chairman)
• Maurício Muniz Barretto de Carvalho
• Thadeu Figueiredo Rocha (employee

representative)

• Wagner Bittencourt de Oliveira

The Audit Committee (AC):

The Audit Committee is a standing committee, with
a one-year mandate eligible for reelection, and is
responsible for the legal and statutory duties, and
whose attributions are determined by its Internal
Regulations. The committee is composed of up to
five members and their corresponding alternates,
three members are appointed by the majority
shareholder, and the minority shareholders of ordinary
and preferential shares are entitled to appoint one
representative each. In 2012 the Audit Committee had
five members, one of whom was a financial specialist,
as per requirement of the SEC. The Audit Committee
held 13 meetings throughout the year.

structure of the audit Committee

Five members and their corresponding alternates; and the
minority shareholders of ordinary and preferential shares
are entitled to appoint one representative each.

one-year mandate eligible for reelection

Monthly ordinary meetings and extraordinary meetings
convened whenever necessary.

Composition of the AC in 2012:

• Danilo de Jesus Vieira Furtado (Chairman)
• Charles Carvalho Guedes (Board member –

finance specialist)

• Fernando Pessoa Lopes (Board member)
• Jarbas Raimundo de Aldano Matos (Board

member)

• Manuel Jeremias Leite Caldas (Board member)

Executive Board:

The Executive Board is responsible for managing
Eletrobras’s businesses according to the strategic

He replaced the representative of the minority shareholders, who resigned in November 2012.

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Sectoral Programs

guidelines established by the Board of Directors. It is
made up of six members, including the CEO, which
are elected by the Board of Directors. The Executive
Board holds weekly meetings.

structure of the executive Board

6 members, including the Chief Executive Officer, elected
by the Board of directors

The Board is described below:

• CEO: José da Costa Carvalho Neto

• Administrative Director: Miguel Colasuonno

• Distribution Director: Marcos Aurélio Madureira

da Silva

• Generation Director: Valter Luiz Cardeal de Souza

Mandate of up to 3 years, eligible for reelection

• Transmission Director: José Antônio Muniz Lopes

Weekly meeting

• Finance and Investor Relations Director: Armando

Casado de Araújo

Governance effectiveness

The performance of the Board of Directors and of
the Executive Board is assessed through specific
methodology expressed in the Performance
Assessment Manual of these bodies. The first round
of assessment in all the Eletrobras companies
began in 2012.

transparency in management

Eletrobras discloses its transactions with related
parties according to Article 247 of Law Number
6,404/76 and CVM Deliberation Number 26/86.
Such disclosure aims to provide, especially for
minority shareholders, information for a better
understanding of the scope, characteristics, and
effects of this type of transaction on the financial
situation and on the profits of the company.

In addition to the information established in the
legislation, we aim to include explanatory notes
concerning the quarterly information, containing
the disclosures specified in the accounting
standards applicable to the annual financial
statements.

We also have a Manual for the Disclosure and Use
of Relevant Information, which establishes the
practices for the disclosure and use of information,
as well as a Policy for the Trading Securities issued
by the Company, in compliance with Ruling Number
358, issued by the Brazilian Securities and Exchange

Monitoring the sustainability performance of the
Eletrobras companies is the responsibility of the
Sustainability Committee subordinated to the
Board of Directors. The Committee acts in the
implementation of internationally recognized tools
and processes in order to improve the management
practices of the companies. (GRI 4.9; 4.10)

Commission (CVM). Our information disclosure and
use practices comply with CVM, SEC, and NYSE.

We annually publish Form 20-F, which is
submitted to SEC with relevant information on the
management of our businesses, on the results of
our operations, and on our financial situation. We
also make available on our website, under Investor
Relations, quarterly information, announcements
and relevant facts, financial statements, and the
remaining corporate reports that contribute to the
decisions made by investors. The remuneration
of the Board of Directors, of the Audit Committee
and of the Executive Board is disclosed in an
aggregate form in the Administration Report,
published annually, and in item 13.2 of the
Reference Form, provided to the CVM. In addition
to the Administration Report, the remuneration of
the Board of Directors and of the Audit Committee
is informed individually in through the Corporate
Management Report in the accountability to the

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Sectoral Programs

Comptroller General of the Union (CGU), which then
submits it to the Federal Court of Accounts (TCU).

The members of the Executive Board receive a fixed
compensation amount and a variable portion, which
is linked to profit sharing. The remuneration of

the members of the Board of Directors and of
the Audit Committee is a fixed amount, which
corresponds to 10% of the average monthly
compensation paid to the Executive board.
(GRI 4.5)

total remuneration of the Board of directors, audit Committee, and executive Board

Compensation (R$)

Board of directors

audit Committee

executive Board

2012

435,835.60

251,458.77

2011

350,198.74

196,316.77

2010

322,297.50

187,500.00

4,678,451.19

4,497,155.96

4,246,825.33

The Ombudsman’s Office is one of the main
communication channels in Eletrobras, enabling
the demands of the stakeholders and employees to
be met and, in partnership with other Ombudsman
channels in the Eletrobras companies, aiming to reach
transparency in negotiation processes. (GRI SO1)

The Eletrobras companies held the first election
for choosing an employee representative for the
Board of Directors, as established in the Bylaws, in
2012. The election took place simultaneously in
all Eletrobras companies and the representative
serves a one-year term. The representative elected
for Eletrobras’s Board of Directors held periodic
meetings with employees to discuss the situation
of the electric utilities sector, maintaining a
communication channel, via e-mail, on a monthly
basis. (GRI 4.4)

The company’s Bylaws foresee situations involving
conflicts of interest, in which board members must

abstain from the discussion and the vote that
will decide the matter in which the conflict
is characterized. These abstentions will be
registered in the minutes of the meetings of the
Board of Directors. In order to avoid possible
conflicts of interest and the use of confidential
and strategic information, the president and the
directors cannot hold any directing, managing,
or consulting positions in privately held
companies, power utility companies, or private
law entities associated in any way whatsoever
with the electric utilities sector, other than
subsidiaries, affiliates, special purpose
companies, or utility companies controlled by
the states in which Eletrobras holds ownership
interest, where they may hold positions in the
board of directors and audit committee, in
compliance with the provisions of Law Number
9,292, of July 12th, 1996, concerning their
compensation. (GRI 4.6)

ethical conduct (Gri 4.8)

The Code of Ethics of the Eletrobras companies
formalizes the principles that guide our professional
conduct in the workplace and in business
practices, addressing issues such as corruption,
discrimination, grievances, and promotion of
gender equality, among others. The document is
based on the best market practices and complies

with the Constitution of the Federative Republic
of Brazil (CRFB/88) of 1988, and with the Brazilian
legislation.

All employees receive a copy of the Code at the
time of hire. The members of the board and of the
committee, in addition to approving the document,
have taken part in workshops with practical

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applications of the subjects the Code describes.
Contractors, service providers, interns, and young
apprentices also receive a copy of the Code when
they establish a relationship with the company.
The document is also made available in Braille
and audio, and also in a comic-book version, using
accessible and educational language.

Learn more about the Code of Ethics by accessing:

www.eletrobras.com/elb/main.
asp?View={1B18E422-243D-49FA-8F34-
5DF7F020115A}

Any claims related to the failure to comply with the
guidelines established in the Code can be sent by
specific channels (website, letter, or phone call).
All cases received are registered and internally
investigated by the company. The actions to be
taken are then defined, as well as the eventual
penalties to be applied. (GRI SO4)

In the reporting period, Eletrobras companies
registered 28 discrimination claims, an increase
of 79%2 compared with the previous year. Of this

total, 23 concerned Eletrobras Eletronorte; 12 are
being assessed, 9 have been dismissed, and 2 were
upheld. The 5 remaining claims were registered in
Itaipu Binacional; however, they concern grievances
involving discrimination complaints. They are in the
initial phase and have not been judged. The claims
were sent to the relevant areas (Permanent Ethics
Committee or Gender and Diversity Committee)
for investigation and for appropriate actions to be
taken. (GRI HR4)

203 cases of corruption were also registered; 2 at
ED Acre, 4 at Eletrobras Amazonas Energia, 1 at
Eletrobras Chesf, 1 at Eletrobras CGTEE, and 12 at
Eletrobras Eletronorte, of which 7 are ongoing, and
5 were dismissed. Of this total, 2 cases at Eletrobras
Amazonas and 1 at Eletrobras Chesf resulted in
dismissals; in addition, 1 case at Eletrobras CGTEE
was dismissed. Another 2 claims at Eletrobras
Amazonas Energia resulted in punishment; the
remaining cases are ongoing. In 2012, no service
agreements were terminated or non-renewed due
to corruption claims. (GRI SO4)

Cases

Suggestion boxes
In 2012, holding installed complaint/suggestion boxes in its buildings. The initiative was
suggested by the Ombudsman Area and the Ethics Commission to serve some segments of
the company, such as service providers. Contract managers, inspectors, and supervisors and
contractors have been instructed on how to proceed with the claims. In the same year, 35
members of the Ethic Commissions took part in 72 hours of training workshops.

Exercising citizenship
Eletrobras Eletronorte invests in educational actions aimed at policies and procedures
concerning human right issues. In 2012, there were 43 classes created with 514 members,
representing approximately 16% of the employees. Some of the actions performed were:
managerial training on gender and race, training workshops and updating of the gender and
race subcommittee, lectures on volunteer work, Brazilian sign-language classes, lectures on
women’s etiquette, sexuality, conversational rounds on drugs, accident prevention, among
others. (GRI HR3)

2
3

This increase is due to the fact that, in 2012, all claims were considered, instead of only the cases that were upheld.
The methodology used for collection in 2012 was modified, aiming at greater precision and at registering all claims, regardless of their outcome

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Sectoral Programs

Corporate risk management in eletrobras companies

Governed by a single policy and coordinated by the
holding, the risk management process in Eletrobras
companies was developed to ensure a systemic
view of results and standardization across all its
subsidiaries.

statements), it was possible to expand the coverage
of the management process through the inclusion
of risks associated with distribution activity.
Previously, the matrix had only addressed events
related to energy generation and transmission.

In order to support risk management activities,
operational (risk management and internal controls)
and governance structures (risk committees) were
established in each of the companies. The holding’s
Risk Committee is responsible for providing
general guidance and its main responsibilities are
as follows: the management and validation of the
results of risk analyses; the prioritization of high-
impact and vulnerability group risks according to
financial, operational, and image criteria; and the
guidance and integration of the performance of the
remaining Eletrobras companies.

Based on this model, Eletrobras has identified and
consolidated all possible threats to its strategic
objectives in a single risk matrix. This matrix
includes strategic, operational, financial, and
compliance risks. In 2012, in addition to tracking
prioritized risks according to a quantitative model
(assessing their impacts on the company’s financial

stakeholder engagement (Gri 4.14; 4.15)

The relationship with stakeholders aims to define
and establish a channel for receiving internal and
external inputs, in order to identify potentially
relevant issues to stakeholders and to Eletrobras
companies. Our audiences are:

• Leaders at Eletrobras companies
• Employees/Service providers/Interns
• Families of the employees of Eletrobras

companies

• Investors/Shareholders/Market analysts
• Communities
• Society
• Press and opinion makers
• Partners/Sponsors/Suppliers
• Legislators/Regulatory Agencies/Government
• Clients/Consumers/Distribution companies

We aim for the continual improvement of our
management practices, focusing on transparent
processes suitable to the market in which we
operate. Eletrobras seeks to comply with the
requirements of the Sarbanes-Oxley Act and to
maintain the rating of its American Depositary
Receipts (ADRs) in the NYSE. In order to do so,
the Program for the Remediation of Deficiencies
of Internal Controls was implemented, through
which the company intends to reduce its existing
material weaknesses, as well as to demonstrate
its engagement in the implementation of the best
management practices. (GRI 4.11)

The certification of our internal controls is
done by the administrators (CEO and CFO) and
by independent auditors, addressing eventual
weaknesses and their remediation plans in a
transparent manner.

Through the Eletrobras companies’ Integrated
Communication Plan, whose content is in line
with the strategies of our business, we guide the
activities of the communication area, from the
establishing messages to identified audiences to
implementing action plans. (GRI SO1)

The engagement of these audiences is possible
through different communication channels, which
are segmented according to the audiences: internal
and external.

Among the mechanisms offered to the internal
audience, we highlight the Organizational Climate
Survey; the program Prosa & Café (Chat and Coffee);
e-mail; Fale com o Presidente (Talk to the President),
the forwarding of questions to the President during
a corporate radio program; and surveys with
Stakeholders.

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Sectoral Programs

With our external audience, we have maintained a
relationship through the following channels:

Survey with Stakeholders: It was conducted by
Eletrobras companies for the third consecutive
year, with the main objective of identifying the
issues that are relevant to our audiences. The
Survey with Stakeholders, conducted using the
GRI methodology, enables the assessment of
perceptions concerning one of the most important
promotion tools of the Eletrobras companies: its
annual and sustainability report. The survey is
conducted based on a questionnaire, which is sent
to our main stakeholders. In 2012, a total of 3,557
people took part in this process. (Learn more about
the subjects addressed in the survey in section About
this Report, on page 17)

Panel with Specialists: For the first time, Eletrobras
held a Panel with Specialists, aiming to enhance the
materiality process concerning the subjects to be
addressed in the Annual Sustainability Report. The
specialists voluntarily analyzed the document for
the previous year and suggested opportunities for
change, as well as the most relevant subjects to be
addressed in this material considering the current
situation of the Brazilian electric utilities sector,
the types of business of the company, and the
expectations of society. (Learn more about the results
of this panel in section About this Report, on page 17)

Ombudsman Areas: All of the Eletrobras companies
have Ombudsman Areas to receive contacts, thus
establishing a communication channel between
senior management and its various audiences. The
contacts received are analyzed by the Ombudsman
Areas and forwarded to the involved areas in order
to be appropriately handled.

Fale Conosco (Contact Us): This communication
channel is designed for the stakeholders and
available on our website. It addresses various
subjects, including the clarification of social and
environmental issues.

http://www.eletrobras.com/elb/data/Pages/
LUMISFE1BFC04ENIE.htm

and information on possible irregularities or
inappropriateness in accounting records. Any
person who identifies or suspects any irregularity in
the Eletrobras companies can use this tool to inform
the company’s Ombudsman Office directly, through
the web or phone numbers.

www.eletrobras.com/elb/data/Pages/
LUMIS93E16E79PTBRIE.htm

Access to Information Law: In compliance with the
Access to Information Law (Law number 12,527),
Eletrobras’s General Ombudsman implemented
the Serviço de Informação do Cidadão (Citizen
Information Service) – SICl, in 2012. This service
allows public agencies and society in general to
send requests and perform queries in an efficient
manner by accessing:

www.eletrobras.com/elb/data/Pages/
LUMISE874B847PTBRIE.htm

Other relationship mechanisms: As a complement
to the aforementioned relationship mechanisms,
Eletrobras maintains a constant relationship
with society through the performance of its
current activities, such as the management of
the National Program for Universal Access to
and Use of Electricity (Luz para Todos) and of
the Technological and Industrial Development
Program (PDTI), through which the company
stimulates cooperation and partnership between
the Eletrobras companies and universities, research
centers, and the industry in general. Public hearings
and technical meetings, which are held during the
planning of new developments and environmental
licensing, are opportunities for the on-site presence
of stakeholders. We also participate in the regular
meetings with the Consumer Council (See details on
page 144).

The main subjects addressed with employees,
according to our Integrated Communication Plan,
are the four values described in our Strategic Plan:
focus on results, entrepreneurship and innovation,
appreciation and engagement of people, and ethics
and transparency.

Canal Denúncia (Report Channel) of the Eletrobras
companies: The channel is available on the
Eletrobras companies’ websites; it receives claims

For stakeholders, in addition to the subjects
highlighted above, our communication proposes
to contribute to creating a space to maintain

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relationships with the community; to stimulate the
sharing of experiences; to offer information about
our businesses; and to promote the values, conduct,
and procedures of the Eletrobras companies
in projects involving sponsorship, advertising,

preservation, and the improvement of the
quality of life of society, from an ethical-
cultural and social and environmental
standpoint. (GRI 4.17)

Cases

People Energy
In 2012, through “Energy of the People,” our communication actions highlighted the pathway
taken by Eletrobras in its 50 years. Throughout the year of our fiftieth anniversary, we adhered
to our strategy of appreciating employees by starring them in our advertising campaign called
“Reinventando a Energia” (Reinventing Energy), which presented stories of real people who
demonstrate how the company is a part of the life of Brazilians.

Managerial meetings
In 2012, Eletrobras’s Executive Board brought the company’s management together in two
semiannual meetings where the financial and operational results of the company were presented
and relevant subjects were discussed. This initiative is part of the communication plan called
“face a face” (“face to face”), which consists of on-site meetings aimed at closer integration
between the audiences, and also included the “Action Plan for Improving the Organizational
Climate.” With the release of the semiannual results in an event exclusively for managers, the
company sought to strengthen its relationship with these employees, in addition to collecting
insights and suggestions for the improvement of corporate aspects.

Rio+20
Eletrobras was present as one of the official partners in the United Nations Conference on
Sustainable Development, or Rio+20, held from June 13 - 22, 2012 in Rio de Janeiro. At our booth
combining all of the Eletrobras companies, our initiatives regarding the efficient use of energy,
social and environmental actions, and the universal access to energy, among others, were
presented to the public. During this event, Eletrobras representatives took part in events such
as “Encontro da Indústria para a sustentabilidade” (Meeting of the Sector for Sustainability) and
“Seminário Energias Renováveis para o Desenvolvimento Sustentável” (Renewable Energies for
Sustainable Development Seminar) - Energy Day.

Seminar on Sustainability
In 2012, Eletrobras Amazonas Energia held the 1st Seminar on Sustainability, Environment
and Energy that had the participation of consumers, governmental and private institutions,
aiming to provide a useful setting to exchange knowledge and experiences about issues on
sustainability, environment and energy.

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Brand, reputation, and image management

Sectoral Programs

In 2012, the corporate reputation and image
study was concluded. It aimed to maintain an
increasingly specific approach destined for
Eletrobras’s stakeholders, in Brazil and abroad.
The study investigated brand awareness, assessing
how much these audiences know about Eletrobras
and, comparatively, the other companies in the
industry. The familiarity assessment reflected both
the number of people who know the company and

the depth of their knowledge. To evaluate the first,
we used a spontaneous memory assessment, similar
to a top-of-mind awareness survey. To determine
how much people know Eletrobras, we used a closed
analysis on the level of knowledge they have about
the company. The brand assessment survey was
conducted based on three main criteria: brand
strength, perceived coherence, and identification.
(GRI 2.2)

Business Strategy

In 2012, the company continued preparing the
2012-2016 Business Plans for each of the Eletrobras
companies, involving a comprehensive negotiation
process with the holding. The work was conducted
based on the following Plans of the Eletrobras
System: Strategic (2010-2020); Business Directors
for 2011-2015 - with their analyses, diagnoses,
assumptions, and portfolio of projects and actions;
and Management and Business Director (2013-
2017), with its respective project portfolio.

Provisional Measure 579 (see details on page
83) had a profound impact on Eletrobras’s
operational strategy due to the adjustments
the Federal Government made in the operation,
maintenance, and expansion dynamics governing
the Brazilian Electric Utility Sector. After passage
of this measure, the planning and management
process, which was ongoing at the time, was
reviewed in order to address the new conditions in
which the concessions that were about to expire
were extended. The work for the development
of the Eletrobras companies’ Business Plans was
interrupted, given that a series of assumptions
related to cash flow generation, financing and
raising of funds, and expansion strategies
were affected by the provisions set forth in the
aforementioned Provisional Measure.

In an immediate action for the strategic alignment
of Eletrobras to the new reality, the company sought
to prepare short- and medium-term guidelines
addressing the following conditions:

• The definition of a set of strategic guidelines to

be implemented in a portfolio of critical projects,
focused on management and on the business
areas of the Eletrobras companies;

• The incorporation of performance indicators and
related targets to the aforementioned project
portfolio, allowing the easy monitoring and
measuring of results;

• The review of the Strategic Corporate Plan for

2013-2022;

• Stemming from the previous item, the resumption
of the preparation of the Eletrobras companies’
Business Plans for 2013-2017 based on new
assumptions.

The strategic guidelines, which result from this
adaptation, are grouped in three areas of operation:

• Sustainable expansion: to maintain leadership in
the domestic market, prioritizing participation in
structuring projects, in Brazil and abroad, based
on criteria for the selection of developments
which consider their social and environmental
and economic-financial feasibility.

• Operational efficiency: to be pursued as a

short-term objective (3 years) by implementing
cost reduction, revenue increases, quality
enhancement, and workplace safety actions,
through a portfolio of projects that is common
to all companies. This portfolio directly reflects
the conditions adopted for the financial forecasts
that have supported the recommendation to

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accept the extension of the concessions that are
about to expire and the targets established by the
CMDE, agreed upon between the holding and the
companies.

• Business, governance, and management model:
considering the economic-financial, corporate,

organizational, legal, and regulatory
dimensions and improved efficiency in the
management of existing assets, so as to
ensure the advancement of its activities, the
quality of its results, and the sustainability of
the organization.

Understanding MP 579

When Eletrobras celebrated its fiftieth anniversary,
the Brazilian electric utilities sector underwent
deep changes in its business environment. In
September 2012, the Federal Government approved
Provisional Measure 579/12, which governs the
power generation, transmission, and distribution
concessions in the country, as well as the reduction
of industry-specific charges and tariff affordability.

According to this measure, the concessions (whose
terms are due to expire in 2015 and 2017) will be
renewed, one single time, for up to 30 years. The
measure established that, due to this extension,
companies would be paid only for investments
in equipment operation and maintenance and
no revenue would be received, including the
amortization of unamortized and undepreciated
assets. These would be compensated by the grantor
and would not be included during the calculation of
the tariff.

The calculation for indemnification, at the time the
concessions were extended, was prepared based on
a methodology called New Replacement Cost, which
is used in the tariff renewal processes of the power

distribution and transmission concessions to define
the basis of their compensation.

Adherence to the MP was optional, and companies
had approximately two months to assess the
situation and choose either to maintain the terms
agreed for the concession or to renew them.

Eletrobras companies’ understanding of Law
12,783

Eletrobras companies accept the 30-year extension
of concessions whose agreements expire between
2015 and 2017.

The decision was made during the Annual General
Meeting, where the Board of Directors presented
technical studies prepared by Eletrobras companies
and approved by the holding. During the meeting, it
was clear that our option to extend the concessions
was the decision that would add greater value to
shareholders.

The chart below demonstrates the impacts of Law
12,783, according to the understanding of the
management area.

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Sectoral Programs

impacts stemming from the measure:

to society

- the electric bill of Brazilian families is now 18% lower on average.

to Brazil

- the industry felt an average drop of approximately 32%, which increased
competitiveness in various segments and fostered the economic expansion cycle.
on average, considering all consumer classes, there was a fall of approximately 20%
compared with 2012.

- Brazil is included in the small group of countries that is simultaneously cutting back
on energy costs and boosting their energy production.

- Until 2012, the average residential and industrial tariffs were R$ 346/MWh and R$
235/MWh, respectively. After Law 12.783, the average residential and industrial tariffs
decreased to R$ 291/MWh and R$ 170/MWh, respectively. Considering the countries
that belong to oeCd, BriCs, and including argentina, the average industrial tariff
charged in Brazil holds the 12th position, according to the graph shown below.

Comparação de tarifas industriais sem tributos

202

187

184

182

135

118

115

114

112

103

Czech Republic
Turkey
Italy
Poland
Slovenia

Brazil 2011

United Kingdom

Estonia
Japan
Greece

Netherlands

Luxembourg

Belgium
India
Brazil 2013
France
Sweden

Denmark

Finland

United States
China
Switzerland

Canada

Argentina
Russia
Norway

100

150

200

250

Source of data: IEA Prices and Taxes, ANEEL and FIRJAN - Exchange Rate 1$ = 2R$

the eletrobras companies

- The industry-specific legislation, since the Water Code, already provided for the
return of the assets held by a concession to the Union after the expiration of its term.

- law 12,783 offered the option of extending the concessions in case the utility
company accepted the conditions defined by the Grantor. Based on the assumptions
presented in the studies produced by the companies, the option of extending the
concessions proved to be the best one, from a financial standpoint.

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Sectoral Programs

- Given that the indemnification value calculated, based on the new legislation,
differed from and, in most cases, was inferior to the accounting amounts, it was
necessary to register this balance in the Financial statements. it is noteworthy that
this fact would be recorded regardless of the decision made by shareholders. the
financial result of the application of Law 12,783 in the Consolidated Balance Sheet for
2013 produced financial losses totaling R$ 10.085 million.

- the eletrobras system, due to the extension of the concession for another 30 years,
reduced its annual revenue for 2013 and 2014 by r$ 8.7 billion, and half that amount
in 2015. at the same time, it has secured an annual revenue of r$ 3.3 billion for 30
years.

- The implementation of an extensive operational efficiency enhancement program
across the Eletrobras System is critical for the maintenance of the financial
sustainability of the companies.

- the extension of the concessions poses a great challenge. in order to meet it, the
companies will have to take advantage of instruments that they already have: i)
economy of scale in operations and logistics; ii) opportunities for future investments
in the facilities that had their concession term extended; iii) operational synergy,
both internally and with other players in the industry; iv) nationwide presence; v)
preservation of the operational safety and unity of the electric system managed by
eletrobras; vi) continued sustainable expansion to maintain its leadership in the
national electricity market.

Goal and corporate performance agreement

Eletrobras has been working to enhance its
management mechanisms and to achieve improved
performance levels. The Contract of Goals and
Corporate Performance (CMDE) is one of the pillars
of this process, considering that it manages the
performance of processes at various levels of the
Eletrobras companies.

Since 2010, agreements for corporate performance
goals have been entered into by holding and its
companies regarding economic-financial, social
and environmental, and operational dimensions
through the use of specific indicators.

The established goals and indicators to reach
corporate objectives resulted in an action portfolio

international operations

Border interconnections

Eletrobras operates international interconnections
with Paraguay (comprising four transmission
lines that transmit part of the power from
the hydroelectric power plant of Itaipu to the
Ibiúna substation, in Sao Paulo); with Argentina
(characterized by the 132 kV transmission line,

that is managed in through each subsidiary. In
2012, the process achieved some progress:
The setting of goals associated with the indicator
panel of holding for 2012;
The signature of the Addenda to the CMDEs of
subsidiaries, with readjustments for 2012 due to
new criteria for the determination of indicators,
motivated by the adoption of accounting model
IFRS and changes in the business scenario of the
Eletrobras companies;
At the end of 2012, studies were carried out in order
to establish new goals for the 2013-2017 cycle, due
to new regulations set forth by law 12,783 (related
to Provisional Measure 579).

which interconnects Uruguaiana substation with
Paso de los Libres substation, in Argentina); with
Venezuela (230 kV transmission line, with 200 MW
capacity, which interconnects Boa Vista (RR) to the
city of Santa Elena, in Venezuela); and with Uruguay
(230 kV transmission line which interconnects the
Riviera frequency converter station – 70 MW – to
the Livramento substation in Brazil. A second

- 97 -

Sectoral Programs

interconnection is being built to strengthen this
power integration between the two countries).

Foreign operations

Eletrobras maintained its strategy of developing an
international operation in the energy sector, directly
or in consortium, seeking the implementation of
developments for renewable energy generation and
transmission, provided they meet thorough risk and
return assessments.

In 2012, Eletrobras continued with studies on
opportunities presented in the Americas and
Africa. It is possible to highlight studies on the UHE
Tumarín, in Nicaragua; the transmission line Brazil

– Uruguay, with both works scheduled to start in
2013; and the implementation of high-voltage
transmission lines in Mozambique.

Also in 2012, the Agreement for Assessment
and Development of the Complex for Wind
Power Generation installed in the Oriental
Republic of Uruguay was entered into by
Eletrobras and the Uruguayan state company
Administración Nacional de Usinas y Trasmisiones
Eléctricas (UTE). Through this agreement,
Eletrobras and UTE are evaluating a series of
wind power developments that will add more
than 210 MW of clean energy to the power
matrix of Uruguay.

Programs for investment and expansion

In 2012, Eletrobras made 78.6% of planned
investments for the year, injecting R$ 9.8 billion
(R$ 5.9 billion in the corporate area and R$ 3.9
billion in partnerships), distributed in the following
segments: generation R$ 5.3 billion, transmission

R$ 3.0 billion, distribution R$ 1.0 billion, other
(research, infrastructure, and environmental
quality) R$ 0.5 billion. For 2013, we forecast
investments of R$ 13.7 billion.

Nature of Investments (R$ thousands)

Budgeted

2013

%**

Actual

2012

2011

2010

2009

2008

Own Investments

Generation

transmission

distribution

4,218.3

-46.1% 1,770.9

2,587.7

2,447.6

2,152.3

1,593.1

2,247.7

-41.6%

1,638.7

2,319.8

1,075.9

1,527.3

1,022.3

1,465.4

28.7%

837.2

597.1

672.5

379.0

242.1

Maintenance - Generation

675.1

15.7%

511.6

431.3

367.7

468.3

425.7

Maintenance - transmission

652.1

51.7%

401.2

193.9

176.6

227.6

210.1

Maintenance - distribution

254.1

15.9%

218.8

183.9

148.9

139.4

99.5

others (research, infrastructure, and
environmental quality)

611.9

15.4%

545.7

461.5

390.0

296.5

285.2

subtotal

10,124.6

-14.4%

5,924.1

6,775.2

5,279.4

5,190.3

3,878.1

Financial Investments in Partnerships

Generation

transmission

subtotal

Total

2,467.7

29.2%

2,980.3

2,109.1

822.2

437.7

543.9

1,104.6

-5.2%

945.1

994.6

852.8

590.1

101.6

3,572.3

20.9%

3,925.4

3,103.7

1,675.0

1,027.8

645.5

13,696.8

-0.3%

9,849.5

9,878.9

6,954.4

6,218.1

4,523.6

* Own Investments PM 598 (December 27, 2012), Financial Reversals in partnerships Decree 7867 (December 19, 2012).
** Percentage Increase of investments made in 2012 based on data from 2011.

- 98 -

Sectoral Programs

The decrease in generation investment in 2012 was
mainly due to the delay in the construction of Angra
3 Nuclear Plant. In transmission, the great delay
was in the projects for implementation of Porto

research, development and innovation

Velho Collector Substation and Collector Station
and in the implementation of Araraquara II Inverter
Station.

In accordance with Law 9,991/2000, Eletrobras
companies must apply resources in research
and development and annually publish calls
for proposals and projects aimed at the
implementation of the company’s scientific
research and technological development programs.

corporate strategies, aligned with and integrated
into the Strategic Plan and business plans, seeking
results as a base for growth and competitiveness
and as a critical element in combining sustainable
business growth with social and environmental
responsibility.

Since 2009, the companies have followed the
guidelines of the corporate Research, Development,
and Innovation Policy (R&D+I) and approached this
topic through short-, medium-, and long-term

The investments in R&D+I of the Eletrobras
companies in 2012 totaled R$ 215 million, up
18.9% compared with the previous year. (GRI EU8)

expenses for research and development (in r$ millions)

Types of Projects

Energy efficiency

renewable energy technologies

distributed energy

transmission and distribution technologies

Generation and advanced technologies

innovative services related to sustainability

r&d Management and innovation

total invested

2012

19.27

11.12

2.00

125.98

35.07

20.72

0.93

215.07

2011

14.98

11.38

2.10

105.70

26.90

18.96

180.02

Note: Data for 2012 do not include information on the flowing companies: ED Acre, ED Piauí, e Eletrobras Eletronuclear.

Case

R&D Projects of the Eletrobras companies
In line with the Research, Development, and Innovation Policy, the Eletrobras companies
developed technological solutions that aim at strengthening the concept of sustainable
development in line with growth in the supply and demand of clean and renewable energy. To
do so, the companies have a diversified structure of R&D+I with the support of a wide network of
laboratories, including Cepel, as well as partnerships with educational and research institutions in
various regions of the country.
Eletrobras Distribuição Alagoas, for instance, invested approximately R$ 3.3 million in 2012 in
research and development projects focused on transmission and distribution technologies, such
as the Development of a Reference Model project for the EDEs, based on experimenting with
applications of a set of technologies within the smart grid concept.
Pilot initiatives will be implemented in Parintins (AM) to evaluate the effective contribution
of these applications in the enhancement of the operational performance of the Eletrobras
Distribution Companies.

- 99 -

Sectoral Programs

In order to increase the degree of knowledge about the processes that result in global warming,
Eletrobras has been promoting the development of studies and research. This occurs especially
in relation to the estimated greenhouse gas emissions in hydroelectric reservoirs.

In this case, Eletrobras and its generating companies have actively invested in the development
of methodologies and technologies for the emissions by reservoirs in hydroelectric plants to be
reliably calculated.

An example of this is the strategic project “Monitoring of Greenhouse Gas Emissions in Reservoirs
of Hydroelectric Plants” of public hearing number 009/2008 held by the National Electricity
Agency (Aneel), whose objectives include the establishment of guidelines for the monitoring,
analyzing of data and modeling, in addition to the definition of best practices in management
concerning greenhouse gas emissions in reservoirs of hydroelectric plants.

This study is financed by the generating companies Eletrobras Furnas, Eletrobras Eletronorte
and Eletrobras Chesf, with mediation by the holding and coordination by Eletrobras Cepel,
representing an important Brazilian contribution to the Hydroelectricity Workgroup of the
international energy agency (Ieahydro).

Eletrobras CGTEE invested in a technology capable of using ashes resulting from the
production process in the Presidente Médici Thermoelectric Plant (RS) as raw material for a
new product to be used in pavements.

energy research Center (eletrobras Cepel)

Eletrobras Cepel operations seeks excellence in
results in the areas of research, development, and
innovation (R&D+I); in the areas of generation,
transmission, distribution, marketing, and final
use of electricity, as well as in the electrical-
energy planning and operation; in the conduction
of technology studies and services; and in the
conduction of experimental research and tests. It
works as Executive Department of the Commission
for Technology Policy (CPT) of the Eletrobras
companies, a structure that, in 2012, started to
treat R&D+I and Technology corporate issues in an
integrated manner, defining policies, guidelines,
strategies, and action plans. The benefits arising
from the operation of Eletrobras Cepel go beyond
the Eletrobras companies and include the Ministry
of Mines and Energy (MME), the Ministry of
Environment (MMA), and the Ministry of Science,
Technology and Information (MCTI), as well as trade
groups such as the Energy Research Company (EPE),
Operator of the National Electric System (ONS),
Power Trading Chamber (CCEE), and the Brazilian
Electricity Regulatory Agency (Aneel), along with
utility companies and equipment manufacturers.

The company is currently expanding its
laboratory infrastructure and experimental
research for the development of advanced
solutions in the transmission of large amounts
of energy, which are essential for the sustainable
use of hydroelectric resources from the North of
Brazil, such as the External Ultra-High-Tension
Laboratory (Labuat), under construction in the
Adrianópolis Unit with resources from Eletrobras,
FINEP/MCTI, and the World Bank.

It participates in important actions for
the promotion of hydropower, such as
the development of methodologies for
implementation of hydroelectric plants, using
the Platform-Plant concept, international
participation, and the coordination of a group
for the International Energy Agency (IEA). It gives
Eletrobras technological support in programs
such as Procel and Proinfa. (GRI EU23)

In 2012, it developed its main action in R&D+I for
Eletrobras companies through its institutional
projects portfolio with 92 projects as shown
below:

- 100 -

Sectoral Programs

type of Project

disturbance analysis

technical and Financial analysis of developments and tariffs

Conservation and Efficient Use of Energy

renewable energy and distributed Generation

Stochastic Hydrology, Hydro, and Wind Power Resources

environment

Monitoring and diagnosis of systems and equipment

Planning of electro-energetic expansion

Planning of electro-energetic operation

Planning, operation, and network analysis

Computer techniques for Parallel Processing

Technology of Materials and Useful Life Extension

technologies of real-time supervision and Control

transmission technologies

technologies for distribution, Metering, Preventing losses, and energy Quality

total

sistema de inovação

Quantity

Innovation System
The Eletrobras Innovation System focuses on systemic innovation and is based on four
dimensions that interact with each other, obtaining a practical model for its institutionalization.
The selected modules that began the implementation of this system were People and Capacities,
in 2011, with the initiative Action for Awareness on Innovation. The following year, the module
focused on Processes and Tools, with the initiative Collection and Treatment of Employees’
Ideas. To this end, support tools were analyzed and the software NOUS was selected, which is
collaborative software focused on innovation and used successfully by other companies.

One of the applications of NOUS was the challenging program “Renew Eletrobras,” which aims at
seeking innovative solutions, collected from employees and aligned with the corporate strategy
for cost reduction, increased revenue, and new business development.

The governance of the Eletrobras Innovation System is the responsibility of the Managing
Committee, composed of representatives of all Boards, and of a Committee for Evaluation
of Innovative Ideas, responsible for the assessment, classification, prioritization, and
implementation of ideas registered in the database by employees. In 2012, a total of 62% of
employees participated in the project and presented 219 new ideas, all of which were analyzed by
the Committee, which selected the ones most suitable to the company’s strategic interests.

This approach to innovation is based on the appreciation of employees’ skills, and their
engagement is a key factor in its success.

- 101 -

Ingá Cipó
Adenocalymna

- 102 -

our responsibility
towards the Market

- 103 -

- 104 -

Our Responsibility Towards the Market

Economic Sustainability
The growth of the Eletrobras companies is based on
strategic decisions made ethically and responsibly

Our financial management is aligned with the best
practices of the market, considering the interests
of shareholders, employees, customers, suppliers,
and the local community, because we believe it is
important to grow together.

In 2012, the Eletrobras companies suffered atypical
effects due to the Provisional Measure 579, which
affected the company’s profitability. However, there
are still growth perspectives.

Investments were made in the amount of R$ 9.8 billion,
which included R$ 5.3 billion in generation, R$ 3.0

highlights of consolidated results

• Net Operating Revenue: R$ 34,064 million (up

16.6% from 2011);

• Operating Result: R$ 1,668 million (down 59.7%
from 2011), this result was mainly influenced
by Operational Provisions, which presented an
increase of R$ 2.5 billion compared with 2011,
and by the Transfer from Itaipu Binacional;

• Personnel, Material, and Service (PMS)/ Net

Operating Revenue (ROL): 24.8%, down 1.5%
from 2011;

billion in transmission, R$ 1.0 billion in distribution
and R$ 0.5 billion in research, infrastructure, and
environmental quality. Working independently or
in partnership, the Eletrobras companies added
approximately 711 MW of clean and renewable energy
and 880 km of transmission lines to the Brazilian
power matrix. In distribution, with our 199,935 km
of network, we provide energy to approximately 3.7
million customers. In addition, in the generation
segment approximately 22,662 MW are being built
and the construction of 19,040 MW is being studied.
In transmission in the coming years, we will implement
over 13,730 km, which represents a gain of 13,885
MVA in transformation capacity.

influenced this decrease are as follows: revenue
from Transfer from Itaipu Binacional, which went
from R$ 836 million in 2011 to R$ 414 million in
2012; and the provisions for impairment1, which
went from R$ 435 million in 2011 to R$ 1,059
million in 2012;

• Net Result of Exchange Rate Variation: R$ 421

million (down 37.1% from 2011);

• Transfer from Itaipu Binacional R$ 414 million

(down 50.5% from 2011);

• Adjusted and Consolidated Ebitda: R$ 5,520

• Atypical Effects (impairment, onerous contracts,

million, down 8.4% from 2011. The variables that

and compensations) R$ 11,693 million.

Impairment of assets according to CVM rule

- 105 -

Our Responsibility Towards the Market

value added statement (dva) (Gri eC1)

Centrais elétriCas Brasileiras s.a. - eletroBras
STATEMENT OF VALUE ADDED FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 (in thousands of Reais)

1 - REVENUES ( EXPENSES)

sale of goods, products and services

not operationals

2 - INPUTS PURCHASED FROM THIRD PARTIES

Materials, services, and other

segment burdens

Power purchased for resale

CONTROLLER

CONSOLIDATED

2012

2011

2012

2011

2.780.499

2.763.701

39.538.861

33.061.356

44.766

1.187.135

2.780.499

2.763.701

39.583.627

34.248.491

(765.131)

(352.358)

(25.930.890)

(11.442.512)

(1.797.922)

(1.712.669)

(2.408.742)

(1.944.449)

(4.573.673)

(3.386.289)

Fuel for the production of electrical energy

(708.711)

(162.673)

operational provisions

3 - GROSS ADDED VALUE

4 - WITHHOLDING

(764.387)

(936.390)

(3.441.106)

(2.848.749)

(3.938.261)

(3.233.197)

(36.452.302)

(19.552.892)

(1.157.761)

(469.496)

3.131.324

14.695.599

depreciation, exhaustion and depletion

(6.279)

(6.392)

(1.775.214)

(1.723.885)

5 - NET VALUE ADDED PRODUCED BY THE ENTITY

(1.164.040)

(475.888)

1.356.111

12.971.714

6 - ADDED VALUE RECEIVED in TRANSFER

shareholdings

Financial revenues

(7.531.378)

2.049.302

468.584

482.785

4.775.182

4.779.677

4.335.442

4.262.326

(2.756.195)

6.828.979

4.804.026

4.745.111

7 - TOTAL VALUE ADDED TO DISTRIBUTE

(3.920.236)

6.353.091

6.160.136

17.716.825

DISTRIBUTION OF VALUE ADDED

Personnel

. Personnel, charges and fees

. retirement and pension Plan

TAXES

. taxes, charges and contributions

third Parties

. Financial charges and rentals

. donations and contributions

shareholders

. dividends or interest on net equity

. Participation of non-controlling shareholders

326.533

366.893

5.422.099

5.346.029

28.292

27.620

294.669

204.832

354.825

394.513

5.716.768

5.550.861

792.862

345.262

3.285.987

4.086.108

3.285.987

4.086.108

1.521.039

1.673.555

3.702.933

4.027.873

289.954

207.196

380.101

289.964

1.810.993

1.880.751

4.083.034

4.317.837

433.962

360.933

433.962

(46.737)

360.933

29.454

. Retained profit or loss for the financial year

(7.312.878)

3.371.632

(7.312.878)

3.371.632

(6.878.916)

3.732.565

(6.925.653)

3.762.019

(3.920.236)

6.353.091

6.160.137

17.716.825

- 106 -

Our Responsibility Towards the Market

result 2012 x 2011
The 2012 result shows a decrease of 284.3% when
compared with 2011, registering net losses of R$
6,879 million in 2012, compared to a net income
of R$ 3,733 million in 2011. This negative result is
due to the effect of atypical events (impairment,

net operating revenue (rol)

onerous contracts, and compensations) mainly due
to the regulatory changes made last year, which
amounted to R$ 11,693 million.

The Net Operating Revenue (ROL) of 2012 exceeded that of 2011 by 16.6%, going from R$ 29,211 million to
R$ 34,064 million.

Consolidated (r$ million)

2012

2011

21.548

414

3.682

2.562

3.149

6.122

1.346

696

39.539

(1798)

(1362)

(2290)

(25)

(5.474)

34.064

a) Generation

18.427 energy supply/Procurement/sale

836 Financial asset/transfer itaipu Binacional

b) transmission

3.603 revenue from construction

1.979 revenue from operation and maintenance

2.774 Updating of rate of return - Transmission

c) distribution

4.148 supply

729 revenue from construction

565 operation and maintenance revenue

866 other revenues

33.927 total

deductions to operating revenue

(1713)

Industry-specific taxes

(1086)

iCMs

(1902) PaseP and CoFins

(15) other deductions

(4.716) total deductions

29.211 net operating income

- 107 -

Our Responsibility Towards the Market

net income

Consolidated (r$ million)

2012

34.064

(8.439)

(4.574)

(1.764)

(5.027)

(709)

(1.652)

(1.775)

10.125

469

(5.327)

(3.130)

2.137

2.499

858

421

(2.334)

(572)

(240)

2.769

(10.085)

390

(6.926)

(6.879)

2011

29.211 net operating revenue

(7.671)

(-) Personnel, Materials, and services

(3.386)

(-) energy Purchased for reselling

(1.421)

(-) Use of the electric grid

(4.280)

(-) Construction

(163)

(-) Fuel for the production of electricity

(1.329)

(-) remuneration and Compensation

(1.724)

(-) depreciation and amortization

9.238

483 ownership interests

(2.849) operating provisions

(2.568) other results

4.304

2.422 interest income

653 Monetary restatement

670 exchange variation

(1.709) debt charges

(1.179) Charges for shareholders’ resources

(623) Other financial results

4.539

0 losses - law 12,783/2013

(777)

income tax and social security Contribution

3.762 Net profit for the period

(29) ownership interest of non-controlling shareholders

3.733 Consolidated Net Profit

- 108 -

Our Responsibility Towards the Market

analysis of the Parent Company

2012

2,224

577

947

(493)

749

1,016

2,332

(991)

(2,372)

(644)

(6,879)

(2,071)

(188)

3,733

414

836

(7,531)

2,049

2011

Equity interest

Transfer
Itaipu

Net Revenue
from
Financing

Net
Monetary
Restateme

Net
Exchange
variations

Cost of
Shareholders'
Resourses

Others

Taxes

Profit

Financial Result

- 109 -

Our Responsibility Towards the Market

Capital Market

Eletrobras (BM&FBOVESPA: ELET3 and ELET6 /
NYSE: EBR and EBR-B / LATIBEX: XELTO e XELTB),
the largest company in the energy sector in Latin

America, has a base of over 28,200 thousand
shareholders, located in 34 countries.

analysis of eletrobras’s shares

asset name

Closing rate (december 2011)* Closing rate (december 2012)* associated exchange variation

elet 3 - BM&FBovesPa

elet 6 - BM&FBovesPa

eBr - nYse

eBr-B - nYse

XELTO - LATIBEX

XELTB - LATIBEX

* Ex-dividend closing rates.

r$ 16.38

r$ 24.67

r$ 8.78

r$ 13.19

r$ 7.39

r$ 10.98

r$ 6.37

r$ 10.45

USD 3.12

USD 5.01

EUR 2.39

EUR 3.95

-61%

-58%

-65%

-62%

-68%

-64%

relationship with shareholders and investors

In accordance with the policy of information
submission to the market and the Level 1 rules
of corporate governance of BM&FBOVESPA, the
company holds semiannual meetings in the regional
Apimecs (Association of Analysts and Investment
Professionals in Capital Markets) of the country: RJ,
SP, MG, DF, South, and Northeast.

In addition, the Investor Relations area holds
semiannual meetings in Europe and in the United
States (road shows) in order to present the company
to foreign investors. The Eletrobras Day is held
annually in New York, and the Latibex Forum is
held in Madrid. Eletrobras’s Investor Relations
area frequently participates in dozens of events
and seminars promoted by international banks, in
Brazil and abroad, with the presence of prestigious
analysts and investors from the equity and debt
segments.

Eletrobras publishes the Investor Newsletter,
a quarterly report that has as its audience
analysts and investors of the equity and debt
market worldwide. In it, we publish economic
and financial data, an analysis of the results of
these companies and the consolidated result of
all the Eletrobras companies. It is issued in three
languages, filed in CVM, in SEC, and in the Madrid
Stock Exchange, made available on Eletrobras’s
website, and sent via direct mail to approximately
3,000 registered people.

Eletrobras also publishes “Energy in Shares,”
which is a quarterly newsletter with the most
relevant news about the company and its
possible effects on the market. The intent is for
minority shareholders to have more detailed
information on the company.

- 110 -

Our Responsibility Towards the Market

shareholdings
The portfolio is composed of 44 companies: 14
subsidiaries, 29 with minority shareholding,
and Itaipu Binacional with 50% interest. In this
portfolio, 18 companies have their shares traded
on Bovespa, and the total value of these shares was
R$ 5.15 billion on December 31, 2012, whereas on
December 31, 2011 it was R$ 6.94 billion, reflecting
the decrease in value of energy companies due to
the publication of Provisional Measure 579 and its
effects. The depreciation of the Bovespa shares in
the period was of 25.8%.

In 2012, the control of Boa Vista Energia was
transferred from Eletronorte to Eletrobras and
the negation of the debt of Guascor do Brasil S.A.
was concluded with the sale of all shares held by
Eletrobras. On November 26, 2012, Eletrobras
and the State of Roraima signed a letter of intent
in order to participate in the process of technical,
economic, and financial recovery of the company
CERR. This process provides the transfer of
management and shareholding control from CERR
to Eletrobras.

In April 2012, two agreements were entered into
and between Eletrobras and the State of Goiás, and
Companhia Celg de Participações – Celgpar: the
Shareholders – Agreement and the Management
Agreement, in order to allow Eletrobras to take over
the executive management of Celg Distribuição S/A
(Celg D) through its majority representation in the
Board of Directors of the distributor.

Eletrobras and the State of Amapá entered into
a Shareholders – Agreement and a Management
Agreement in order to promote the economic-
financial recovery of the CEA company, which,
after the implementation of all terms, will evaluate
the possible purchase, by Eletrobras, of the
shareholding control of that company.

Eletrobras’s participation portfolio currently has
shares of four specific developments (SPEs): one
in operation (Wind Power Plant Mangue Seco 2),
one under construction (UHE Belo Monte – Norte
Energia), and two projects (UHE Inambari, in Peru,
and UHE Tumarin, in Nicaragua).

- 111 -

Pitanga
Eugenia uniflora

- 112 -

our responsibility
to People

- 113 -

- 114 -

Our Responsibility to People

Global Compact Principles: 3; 4; 5; 6

The Eletrobras companies invest in actions that
promote respectful and harmonious relationships with
its employees, considering the expectations of both
parties

The Eletrobras companies maintain a good and
respectful relationship with its employees through
continuous actions that promote professional and
personal development.

With a structured People Management Policy,
we disseminate responsible corporate guidelines
through the alignment of our activities in all the
Eletrobras companies. Currently, the Performance

Management System (SGD), the Career and
Remuneration Plan, the Individual Development
Plan, the Unified Climate Survey, and the Health
and Safety Policy, as well as the standardization
of personnel administration and the Information
System for People Management, are some of
the tools that ensure the unified integration and
management of the companies.

In 2012, we invested in performance management
and actions related to the quality of life of
employees, as well as improvements in internal
procedures such as the effective implementation
of the Human Resources module on SAP’s
management system in holding.

Equal opportunities (GRI LA13)

One of the commitments assumed by the Eletrobras
companies is to provide equal opportunities to all.
Initiatives such as the voluntary adhesion to the
Pro-Equity in Gender Program, to the “Principles
of Empowering Women”, and support to the
campaigns that seek to eliminate violence against
women, aimed to develop actions that value
diversity and eliminate any form of discrimination in
the work environment. (GRI 4.12)

The Eletrobras companies integrate the Standing
Committee for Gender Issues of the Ministry of
Mines and Energy and Associated Companies.
During the meetings of the committee, the
companies have the opportunity of sharing
experiences about gender equity practices and the

valuation of diversity in the corporate environment
and in the social projects they support.

Hiring at Eletrobras companies is done through a
civil service examination, an impartial process, as set
forth in the Federal Constitution of 1988, banning the
company from any kind of guidance in the selection,
including that of gender, race, age group, nationality,
and place of residence of the candidate.

Eletrobras provides a minimum share of 5% of
vacancies for people with disabilities, as required by the
Brazilian legislation. Even though we ensure this legal
percentage, Eletrobras has not been able to meet the
minimum percentage. In 2012, Eletrobras companies
had 433 employees with some kind of disability.

Aligned team

By the end of 2012, we had a team of 28,437
employees1, all of them working in alignment with

our mission and organizational values
(GRI LA1).

In 2012, the number of employees includes the number of rehired employees (amnesty). All employees working at Eletrobras Eletropar are part of the staff of other Eletrobras
companies. Employees from Paraguay working at Itaipu Binacional were not considered.

- 115 -

Our Responsibility to People

own employees by company and gender

s
a
n
o
z
a
m
A
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a
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b
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r
t
e
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r
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s
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s
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r
a
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c
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t
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s
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t
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c
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B
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p
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t
I

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H

r
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n
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e
p
%

l
a
t
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T

s
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D
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í
u
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P
D
E

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ô
d
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R
D
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a
m
i
a
r
o
R
D
E

178

296

176

358 101 127 1.182

737

474

268

699

409

267

5.420

19%

e
r
c
A
D
E

Female

Male

265 1.119 1.160

682 208 1.921 382 552 4.557 3.020

2.080 1.278 3.868

773 1.152 23.017

81%

total

333 1.297 1.456

858 288 2.279 483 679 5.739 3.757

2.554 1.546 4.567 1.182 1.419 28.437

Own Employees by gender and region

7172

6414

4577

1700

1774

1620

876

e
l
a
m
e
F

e
l
a
M

e
l
a
m
e
F

e
l
a
M

563

e
l
a
m
e
F

e
l
a
M

e
l
a
m
e
F

e
l
a
M

3080

e
l
a
M

661

e
l
a
m
e
F

North

Northeast

Midwest

Southeast

South

Of the total number of employees, 98% work full time and 2% work part time.

- 116 -

Our Responsibility to People

Own employees by period

Full-time employees

Female

Male

Total

Part-time employees – 6h Part-time employees – 4h

Female

Male

Female

Male

ed acre

ed alagoas

ed Piauí

ed rondônia

ed roraima

eletrobras amazonas
energia

eletrobras Cepel

eletrobras CGtee

161

296

176

358

101

265

810

333

971

1.160

1.456

682

207

858

286

1.921

2.279

382

307

483

392

eletrobras Chesf

1.182

4.557

5.739

737

474

262

699

406

267

3.020

3.757

2.080

2.554

1.274

1.536

3.868

4.567

769

1.175

1.152

1.419

eletrobras eletronorte

eletrobras
eletronuclear

eletrobras eletrosul

eletrobras Furnas

holding

itaipu Binacional

subtotal

total for the
Companies

307

245

5.351

22.454

27.805

559

28.437

Total

326

287

632

As to the origin of top management members: in
2012, out of 59 employees in these positions, 47%

were considered members of the local community.
(GRI EC7)

Senior-management employees

47,46%

52,54%

From local communities

From other communities

Note: ED Acre and ED Alagoas are not included.

- 117 -

Our Responsibility to People

In 2012, the governance bodies of the Eletrobras
companies were composed of 15% women and 85%

men; 31% were between the ages of 30 and 50 and
69% were over 50 years of age. (GRI LA13).

Composition of governance Boards, audit Committee, and Board of directors (la 13)

2011 By age

2012

2011

By gender

Female

Male

2012

129

19 < 30 years of age

118 30 - 50 years of age

> 50 years of age

total

151

137 total

Permanent employees by employee category (LA13)

Managerial Positions - Female

Managerial Positions - Male

Positions with higher education - Female

Positions with higher education - Male

Positions without higher education - Female

Positions without higher education - Male

total

Note: Data for 2012 do not include information for ED Alagoas.

Case

2012

364

1.526

2.008

5.601

2.860

14.781

27.140

21%

11%

54%

104

151

2011

387

1.656

2.109

5.861

2.913

15.618

28.544

137

21%

10%

55%

The search for equality
Eletrobras Eletronorte, through actions of the Pro-Gender and Race Equality Program developed
a “Study of Management Positions According to Gender” in order to establish criteria, plans,
requirements, and goals for the occupation of management positions, which enable the adoption
of affirmative measures to accelerate and broaden the promotion of gender equality in career
advancement.

The study showed an inequality of gender in management positions. Given this result,
the company will adopt measures such as the definition and approval of a Career Plan for
Management Positions complementing the Plan for Positions of the Eletrobras companies;
develop and implement a tool to identify interest and availability of opportunities for women
to take on management positions; and establish goals to increase the number of women in
management positions, among others.

For the fulfillment of these measures, an Action Plan was prepared, with activities to be promoted
between 2013 and 2014. In addition, a Work Group for Management Mobility, composed of
career, education, and strategic planning teams, meets weekly to consolidate steps of this study,
and benchmarking is being conducted in public organizations.

To find out more about the program, go to:

www.eletronorte.gov.br/opencms/opencms/imprensa/pro_equidade/equidade_genero.html

- 118 -

Our Responsibility to People

Climate Survey
The company’s focus is to listen to the expectations
of our employees for the continuous improvement
of our management. Prepared in 2011, the second
unified Organizational Climate Survey of the
Eletrobras companies guided the companies in the
preparation of specific Action Plans, according to
their needs.

In holding, for instance, the action plan was
composed of 17 macro actions, focused on subjects
such as career, communication, culture of results,
education, people and process management,

Performance management
In 2012, we ended the first unified cycle of the
Performance Management System (SGD), which
supported the career development of 87.72%
of employees of the Eletrobras companies
who adhered to the program. In accordance
with the rules and guidelines of the Career and
Remuneration Plan (PCR), and based on results of
skills assessments and SGD goals, the promotion
of employees was conducted in a horizontal (merit)
and vertical (change in complexity level) manner.

As a result of the feedback meeting on the
performance assessed by the SGD, manager and
employee prepared an Individual Development
Plan (PDI), focused on performance improvement
and development of their career (GRI LA12). The
following actions may be agreed upon:

Formal educational actions: Structured and
coordinated by the Corporate Education Units of
the Eletrobras companies, these formal educational
actions can be internal or external, online or on-site,
and are associated with the skills needed for good
performance of employees in each company, or
through Unise when of strategic nature, according
to the Eletrobras System.

Non-formal educational actions: Associated with
the development of employee skills, the non-
formal educational actions are the responsibility
of managers and/or employees (self-development)
and involve reading of books or articles, on-the-

physical installation, and health and safety in the
workplace. The work was prepared in a collaborative
manner by a group composed of managers and
employees. In 2012, a total of 11 actions were
executed; among them we may highlight the
Agreement of Housing Cooperation and Financial
Contribution, which presents below market rates,
and the Good Ideas Award (Prêmio Boas Ideias).
Ongoing actions can be followed by employees
via intranet. The surveys are conducted every two
years, and the next will take place in 2013.

job guidance, participation in informal groups or
external institutions, and participation in projects.

Biopsychosocial actions: Monitored by the
Company’s occupation health department, the
biopsychological actions are recommended
for general health, psychological and social
aspects (relationship) that may interfere with the
performance of employees.

Re-adaptation actions: Re-adaptation actions
aim to adjust the health conditions of employees
on leave from their job attributions due to health
reasons, with monitoring by the Company’s
occupational health department.

Actions for technical visits: The purpose of these
visits is to increase knowledge about Eletrobras
and its companies, technologies, and history; or
introduce new technologies, processes, and better
market management practices and/or processes in
which the company operates.

Actions for layout change: Aiming to detect physical
and environmental work conditions that may
interfere with employees’ good performance or
their personal and/or collective safety, we conduct
changes to layout. The most common changes
are associated with the position of furniture,
equipment, or employee repositioning.

Ergonomic Actions: We support the adaptation of
work to the characteristics of individuals in order to

- 119 -

Our Responsibility to People

promote comfort, safety, and good performance in
employees’ activities and consequently we foster
ergonomic actions. These actions are monitored
by the occupational safety department of the
company.

In 2012, 100% of employees of the Eletrobras
companies had their performance assessed; 88%
were assessed through SGD, as shown below,
and the remaining assessments were conducted
through other tools. (GRI LA12)

Employees who had their performance assessed

Male

Female

total

Number

20,182

4,764

24,946

Percentage

87.68%

87.90%

87.72%

Remuneration
The salary definition of our employees takes into
consideration the salary matrix of each general
position, namely, basic level professional, mid-level
support, mid-level operational, and higher level and
professional researcher, provided in the Career and
Remuneration Plan (PCR). The matrix was designed
in order to observe pay equality and complexity
of positions when compared with the market, as
well as the economic-financial situation of the

Eletrobras companies. In case of readjustments
originating from collective bargaining, the salary
matrix is readjusted according to indices defined
and approved by the Collective Bargaining
Agreement (ACT).

We also note that the lowest male and female
salaries in Eletrobras companies in 2012 were of
R$ 1,031.85; that is, equivalent to 165.9% the
minimum national wage (GRI EC5).

lowest salary paid by the organization

ratio between the lowest salary paid by the
Company and the minimum salary

2012

Women

1.031,85

Men

1.031,85

2011

Women

982,42

Men

982,48

165,9%

180,3%

In 2012, only 2.38% of employees of the Eletrobras companies received remuneration equivalent to the
national minimum wage.

Percentage of employees whose remuneration is
based on wages

2012

2.38%

2011

2.68%

Note: The minimum wage officially established by the government on December 31, 2012 was R$ 622.00.

- 120 -

Our Responsibility to People

Below, we present the average base salary of the Eletrobras companies by gender and their ratio (GRI LA14):

Average and Proportion of base pay (by gender
and employee category) - LA14

2012

2011

Female

Male

Female

Male

Managerial position

Positions with higher education

Positions without higher education

Note: Data for 2012 do not include ED Rondônia.

11.922

13.135

7.248

4.407

8.243

4.627

9.976

6.303

3.169

12.514

8.834

3.033

104

Knowledge management and education

The Eletrobras companies invest in initiatives that
benefit their employees and add mutual value, such
as the Knowledge Management Plan (GC) and the
Eletrobras Corporate Education Plan.

The Knowledge Management Plan, which began
in 2011, has as its main goal to disseminate the
knowledge of its technical team, acquired through
trainings, practical experiences, and investments in
innovation, in order to retain this knowledge in the
companies.

The Corporate Education Plan focuses on the
development of professional skills to reach
organizational goals through lectures, training,
workshops, seminars, and graduation incentives,
among others. The Eletrobras System University

(Unise) is a great ally in this regard. In 2012, this
organization started the Programa Líder, which
aims to expand knowledge on leadership, leveling
concepts and practices of the best business
schools (Harvard, Chicago and Stanford) and to
share information in the context of the Eletrobras
companies. It is a pioneer initiative among
Eletrobras companies, integrating 2,374 managers
in the online mode with an approximate cost of
R$ 643.00 per participant.

In addition, Eletrobras companies invest in
graduation and training programs according to the
needs identified in the critical knowledge mapping
process and the strategic needs, and in PDIs that
include incentives for MBAs and post-graduate,
technical, and language courses. (GRI EU14; LA10)

average training hours per year, per employee (by employee category and gender) - la10

Managerial
Positions -
Female

Managerial
Positions -
Male

Positions
with
higher
education -
Female

Positions
with
higher
education -
Male

Positions
without
higher
education -
Female

Positions
without
higher
education -
Male

TOTAL

total training hours

97.405

216.692

83.354

212.619

109.121

509.279

1.228.470

average training hours
per employee category

296,97

140,16

41,78

38,71

41,33

37,22

47,83

Note: Does not include the companies ED Alagoas and ED Piauí.

- 121 -

Our Responsibility to People

Case

Young Apprentice Program
Through the Young Apprentice Program, the Eletrobras companies support the first job and
promote better technical-professional training of young students working as apprentices.

The Program involves a training course offered with support from Senai, and seeks to address
the demand of the population for a more just and egalitarian society.

Occupational Health and safety

The working conditions and the well being of our
employees are contemplated in the Sustainability
Policy of the Eletrobras companies and respected
by the corporate Policy for Occupational Health
and Safety. Following corporate guidelines, the
Eletrobras companies manage data, identify
opportunities for improvement, and establish
formal health and safety procedures in accordance
with legal requirements, seeking continuous
management improvement and, consequently,
accident reduction.

In ED Roraima and Eletrobras Eletronorte, for
instance, Daily Safety Dialogues (DDS) are
conducted in order to promote a culture of
prevention by raising awareness on safety. The
safety team of Eletrobras Amazonas Energia
extended the values of the policy to its supply chain,
periodically monitoring their activities in order
to ensure compliance with safety requirements.
In 2012, holding prepared for the first time an
Emergency Plan, with simulated evacuations of the
offices; in addition, it conducted theoretical and
practical first aid and wilderness survival courses in
order to protect employees who work in inspection
activities. (GRI EU16)

Topics related to the health and safety of employees
are provided in the Collective Bargaining Agreement

(ACT) entered into by the Eletrobras companies
and the Workers’ Union. The items in the ACT are
negotiated and, if necessary, changed annually,
ensuring compliance with workers’ rights regarding
health, safety, and quality of life in the workplace.

Among the topics covered, it is possible to mention
the compliance with NR-10 and NR-9; prohibition
of isolated work; structuring of Specialized Service
in Safety Engineering and Occupational Medicine
(Sesmt); distribution of Individual Protection
Equipment (EPI) and Collective Protection
Equipment (EPC); supplement to sickness allowance;
participation in the Health and Safety Committee;
Health Protection and Recovery Plan (PPRS); Policy
for Investigation of Occupational Diseases; Program
for Occupational Health Medical Control (Pcmso);
Internal Commission for Accident Prevention (CIPA);
costs associated with occupational accidents; leave
for accompanying dependants; and maternity
protection. (GRI LA9; SO1)

In 2012, the Eletrobras companies reported 182
injuries (with or without sick leave) and three
deaths: one in Eletrobras Chesf, one in Eletrobras
Eletronorte, and one in Eletrobras Eletrosul. The
Eletrobras companies report lost days on the day
subsequent to the accident (LA7).

- 122 -

Our Responsibility to People

(No-lost time and Lost time) injuries per Company

ED Alagoas
ED Rondonia
Eletrobras Amazonas Energia
Eletrobras Cepel
Eletrobras CGTEE
Eletrobras Chesf
Eletrobras Eletronorte
Eletrobras Eletrosul
Eletrobras Furnas
Holding
Itaipu Binacional

Note: the companies ED Acre, ED Piauí, ED Roraima and Eletrobras Eletronuclear are not considered.

(No-lost time and Lost time) injuries per region

SOUTHEAST

SOUTH

NORTHEAST

NORTH

MIDWEST

Note: the companies ED Acre, ED Piauí, ED Roraima and Eletrobras Eletronuclear are not considered.

- 123 -

Lost Days per Company

796

6.076

Our Responsibility to People

ED Alagoas

ED Rondonia

2.248

Eletrobras Amazonas Energia

389

331

429

233

Eletrobras Cepel

Eletrobras CGTEE

Eletrobras Chesf

Eletrobras Eletronorte

Eletrobras Eletrosul

Eletrobras Furnas

Itaipu Binacional

Holding

Note: the companies ED Acre, ED Piauí, ED Roraima and Eletrobras Eletronuclear are not considered.

Lost Days per Region

201

523

971

2.694

6.206

SOUTHEAST

SOUTH

NORTHEAST

NORTH

MIDWEST

Note: the companies ED Acre, ED Piauí, ED Roraima and Eletrobras Eletronuclear are not considered.

- 124 -

Our Responsibility to People

Total Hours Worked, Injury Rate, Lost Days (LA7)

COMPANY

ed alagoas

ed rondônia

eletrobras amazonas energia

eletrobras Cepel

eletrobras CGtee

eletrobras Chesf

eletrobras eletronorte

eletrobras eletrosul

eletrobras Furnas

holding

itaipu Binacional
total

Total number of
Hours Worked

2,599,188

1,719,432

5,004,272

966,000

230,669

1,126,200

6,135,437

2,578,732

9,434,832

2,636,352

3,115,126

34,709,922

Injury Rate
(with and without
lost time)
1.85

0.93

0.76

0.62

1.54

0.67

0.85

1.55

0.78

0.3

1.09

1.05

Lost Day Rate

172.98

0.35

15.55

68.53

0.38

7.62

7.60

471.24
16.87
0.68

5.07
181

Note: The data collection methodology on injuries, lost days X hours worked, does not include commuting accidents.

Assurance of rights
Eletrobras companies complies with the
Department of Work and Union Relations to
assure the rights of all employees. 100% of the
employees are covered by collective bargaining

Case

agreements Eletrobras companies (GRI LA4) and
100% are represented by formal health and safety
committees. Altogether, there are 132 CIPAs and 61
local committees (NR-10 and others). (GRI LA6)

Individual Protection Equipment
In 2012, Eletrobras companies developed a catalogue for the Individual Protection Equipment
(EPI) containing their specific characteristics in order to maintain safety standards. The product
is already being used by the companies and has presented benefits such as cost reduction,
improved quality of the equipment, and speed and accuracy in bidding processes.

Check-ups
Holding has an agreement with clinics for employees to get annual check-ups. These check-
ups are done in order to protect employees’ quality of life by detecting illnesses early, as well as
assessing if their position in the company has any effect on their health so that occupational
diseases can be identified and their causes eliminated. These clinics also perform regular
medical exams as well as exams for employees who are changing positions, returning to work, or
being dismissed.

Safe initiatives
Itaipu Binacional has a Binational Commission for Electricity Hazards and maintains activities
such as the Emergency Action Plan (PAE), the Hearing Conservation Program, and a work group
for the analysis of employees with labor restrictions. The company won the Fundação COGE
2012 award for the Hearing Conservation Program, which recognizes and promotes successful
projects and practices implemented by companies in the energy sector.

- 125 -

Our Responsibility to People

Quality of life

Eletrobras companies have a work group for
Health and Quality of Life, which is responsible
for identifying the best practices regarding these
subjects and standardizing and unifying them in
a corporate manner, promoting their continuous
monitoring. These actions are aligned among
representatives of each company. (GRI LA8)

Among the practices promoted by the companies
in 2012, we highlight the Running Program and the

Cases

Choir of the Eletrobras companies. Throughout the
year, 16 races were held with the participation of
4,767 employees. In the race for the celebration of
Eletrobras’s 50th anniversary, we registered 2,004
applications among employees and the general
public. And the choir gave two performances
throughout the year; the largest, with 104 choir
members, was for the celebration of Eletrobras’s
anniversary.

Learn about some actions of the Eletrobras companies associated with quality of life:

Holding
Caretaker Program: It provides assistance to employees and/or their dependants who need
temporary help with their daily activities and physiological needs.

Psycho-pedagogical Program: It provides support to employees’ dependants who have physical
and/or intellectual disabilities, enabling them to have access to education, required treatments,
and extracurricular activities.

Healthy Eletrobras: Promote assistance to employees in relation to food reeducation, travel
medicine among other themes linked to health and quality of life.

Eletrobras Chesf
Health Promotion Centers (CPS): It offers office employees access to gyms, dance classes, labor
gymnastics, physiotherapy, nutrition, massage, and sports.

Program Live Well Hotline: It gives support, by telephone or in person, to employees and their
family members in psychological, social, financial, and legal areas.

Program for Prevention and Treatment of Problems Related to Alcohol and Drugs: It monitors
detected cases in all companies and offers opportunities for health and lifestyle improvements to
all employees.

Smoking Treatment Program: It monitors detected cases in all companies and offers
opportunities for health and lifestyle improvements to all employees.

Eletrobras Eletronorte
Nutrition workshops: It encourages employees to acquire healthy habits, improving their
quality of life and preventing disease.

Retirement Preparation Program (PPA)

Program to Prevent Drug Abuse

Quality of Life Seminar

- 126 -

Our Responsibility to People

Eletrobras Eletronuclear
Vaccination Campaign: The Company promotes seasonal flu and H1N1 vaccinations; in 2012,
1,056 shots were given.

Counseling Program: The Company makes a biopsychosocial team available for employees and
family members.

Lectures: Employees participate in lectures on depression, alcoholism, smoking, nutrition, and
physical activity.

Campaigns: Campaigns were held on topics such as smoking as a cause of cancer and the
prevention of alcohol and drug abuse.

Eletrobras Furnas
Social caretaker

Workshops on fitness

Itaipu Binacional
Program REVIVER: In 2012, in addition to encouraging creativity, family life, sports, and
citizenship, the company implemented actions that disseminated to employees and their
dependants the idea that changes in habits, attitude, and lifestyle, along with the development
of self-esteem and confidence, are crucial for a healthy and joyful life.

Case

Stay Alert
In 2012, Eletrobras Chesf launched the 2012/2013 cycle of the campaign Fique Alerta para a
Segurança Dez aimed at developing a precautionary culture, focused in health and safety in
the workplace and the well being of all employees of the company. Two main topics were the
focus in this cycle of the Campaign: Commitment of Managers and Safety Communication.

Case

Standing Commission for Labor Claims
The Standing Commission for Labor Claims (CTTP) was created by holding, through
negotiations with employee representatives, in order to internally analyze labor claims made to
the Ombudsman within the company and to deliberate on matters requested by employees.

- 127 -

Our Responsibility to People

Human rights aspects

Eletrobras companies address human rights
in studies for the implementation of new
developments, as well as to adopt measures to
prevent any violations in locations where the
company operates. The companies raise awareness
of employees and stakeholders through campaign
and events.

In order to reinforce human rights issues, the
employees of ED Acre, Eletrobras Chesf, Eletrobras
Eletronorte, holding, and Itaipu Binacional, for
instance, received formal training on the company’s
policies and procedures on this subject. Itaipu
Binacional also promoted a course for safety agents
on defensive techniques and progressive use of
force. These companies have 12,430 employees,

of which 1,372 (11%) were trained, amounting to
27,614 training hours. (GRI HR3)

Eletrobras companies review and evaluate
human rights through an assessment of
contracts and communication channels that
aim to monitor and account for any human
rights complaint that involves employees or
stakeholders. Complaints about human rights
violations may be confidentially made through
the Ombudsman. The cases are forwarded to
the responsible area for analysis and possible
actions. In cases where any evidence of ethical
transgression is found, the complaint is
forwarded to the Ethics Commission. (GRI HR10,
HR11)

Formal claims related to Human Rights, broken down by (GRI HR11):

Registered

Solved (*)

total

total claims, broken down by:

employees

stakeholders

Gender:

Women

Men

Unidentified

Minorities:

Blacks

Foreigners

other diversity indicators

subtotal

Note: Data does not include the companies ED Alagoas, ED Piauí and Eletrobras Eletronuclear.

(*) The difference between registered and resolved complaints comprises complaints considered unfounded, or that were in progress at the end of the 2012 cycle.

- 128 -

Our Responsibility to People

Maternity and paternity leave

In 2012, out of the 580 employees of the Eletrobras
companies who returned from maternity or
paternity leave, 100% remained in the workforce

after 12 months. The companies also offered
women 60 days more than what is required by law.
(GRI LA15)

Maternity/paternity leave (la 15)

2012

2011

Employees entitled to maternity/paternity leaves

Female

Male

total

Employees who took maternity/paternity leaves

Female

Male

total

188

435

623

186

430

616

Employees who returned to work after maternity/paternity leaves

Female

Male

total

150

430

580

81%

100%

215

672

887

189

486

675

151

485

636

80%

100%

Employees who returned to work after the end of their maternity/paternity leaves still employed after 12 months from
resuming their activities

Female

Male

total

Note: ED Piauí not included in the figures for 2012.

150

429

579

100%

149

438

587

99%

90%

- 129 -

Our Responsibility to People

Turnover (GRI LA2)
In 2012, the Eletrobras companies registered a
turnover rate of 3%, down 1% compared with

turnover rate by age (la2)

the previous year, where a rate of 4% was
registered.

Age Group

18 to 25 years of age

26 to 30 years of age

31 to 40 years of age

41 to 50 years of age

51 to 60 hours

> 60 years of age

Number of
employees

Employees who
left the company

New Hires

Turnover Rate

Hire Rate

2012

476

2,136

6,121

6,241

9,550

2,328

2011

738

2,421

5,720

6,622

9,406

1,772

2012

2011

2012

2011

2012

2011

471

198

914

107

592

244

170

211

247

411

404

132

1,106

609

1256

14%

2012

17%

total

26,852

26,679

Note: ED Alagoas and ED Roraima are not included in the 2012 data

turnover rate per region (la2)

REGION

Total Employees

Employees who
left the company

New Hires

Turnover Rate

Hire Rate

SOUTH

SOUTHEAST

north

northeast

MIDWEST

total

3.741

8.034

5.165

7.575

2.337

26.852

Note: ED Alagoas and ED Roraima are not included.

turnover rate by gender

y
b
s
e
e
y
o
l
p
m
e
f
o
r
e
b
m
u
N

r
e
d
n
e
G

e
h
t

t
f
e
l
o
h
w
s
e
e
y
o
l
p
m
E

y
n
a
p
m
o
c

171

511

914

s
e
r
i
H
w
e
N

118

235

189

609

1,47%

1,06%

e
t
a
R
r
e
v
o
n
r
u
T

e
t
a
R
e
r
i
H

2011

33%

17%

0,5%

0,81%

0,26%

2012

2011

2012

2011

2012

2011

2012

2011

Fem Male Fem Male Fem Male Fem Male Fem Male Fem Male Fem Male Fem Male Fem Male

5162

21690

155

759

216

890

26852

914

1.106

130

609

479

281

975

3,00% 3,50% 4,00% 4,00% 2,52% 2,21% 5,00% 4,00%

1.256

Note: ED Alagoas and ED Roraima are not considered in the 2012 data.

- 130 -

Our Responsibility to People

Program for Voluntary Termination of Employment
Eletrobras companies are studying the
implementation of a Plan for Voluntary Termination
of Employment in order to reduce personnel
costs. The plan, which is awaiting approval, will be

presented to employees in the first half of 2013
and works simultaneously with other initiatives to
ensure the transfer of knowledge.

Case

Permanent Incentive
Itaipu Binacional has a Permanent Program for Voluntary Termination of Employment (PPDV)
for voluntary employee terminations under established conditions or on the date they reach
100% of the grace period for INSS and/or their Supplementary Pension Foundation. This
program provides opportunities for planning personnel replacements and follow-up on
terminations. In general, terminations occur due to retirement. In hiring, Itaipu Binacional
adopts a selective process similar to that a civil service examination. The difference in
terminology is due to specific characteristics of the company’s legal nature; it is not a state
company, but a binational company ruled by a treaty signed by the Brazilian and Paraguayan
governments. (GRI EU15)

EMPLOYEES WHO MAY RETIRE, BY EMPLOYEE CATEGORY (%)

In the next 10 years

In the next 5 years

Managerial
positions

Positions
with higher
education

Positions
without
higher
education

Managerial
positions

Positions
with higher
education

Positions
without
higher
education

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

3.0

4.2

35.3

0.7

1.5

4.6

0.0

0.1

7.0

0.3

1.0

3.8

28.5

3.1

0.9

96.0 100.0

58.4

62.9

10.5

17.1

78.4

7.2

55.6

3.4

22.0

85.8

1.0

79.1

82.6

4.4

2.3

73.1

70.6

8.5

8.2

31.0

45.0

6.5

47.3

11.7

35.2

6.7

0.0

0.3

1.7

1.9

50.0

14.3

7.6

12.5

47.6

1.5

54.5

3.0

36.4

20.0

34.8

22.0

14.8

10.5

83.7

39.7

14.8

51.9

36.9

27.7

64.1

10.2

44.3

14.9

6.4

0.4

1.9

14.8

81.0

46.1

34.5

20.4

42.2

8.4

6.0

2.3

8.8

0.3

0.4

72.0

24.7

62.3

2.7

10.1

6.0

40.9

0.0

1.8

0.1

67.0

18.5

2.5

36.6

74.9

1.0

6.0

1.4

12.1

1.7

0.9

20.0

0.0

0.1

0.3

0.7

33.0

0.0

46.2

13.2

7.2

3.8

6.3

5.4

19.7

40.8

2.5

66.0

71.1

76.0

38.7

46.1

4.2

5.6

7.0

6.8

8.3

31.0

10.9

4.9

5.9

6.9

67.0

19.4

61.6

27.0

12.1

17.5

56.0

9.7

45.3

29.4

31.1

17.7

16.3

25.6

29.3

0.0

0.2

0.5

5.2

63.0

9.2

23.5

24.3

31.8

6.7

58.9

15.0

24.6

ed acre

ed alagoas

ed rondônia

ed roraima

eletrobras amazonas energia

eletrobras Cepel

eletrobras CGtee

eletrobras Chesf

eletrobras eletronorte

eletrobras eletronuclear

eletrobras eletrosul

eletrobras Furnas

holding

itaipu Binacional

Note: Does not include the company ED Piauí. In 2011, for each functional category with a possibility of retirement, the percentage was calculated taking
into account the total number of employees at the company. For 2012, the total number of employees in each functional category was considered:
management positions, requiring higher education, and not requiring higher education.considerando o número total de empregados da empresa.
Para 2012, foi considerado o número total de empregados em cada categoria funcional: cargos gerenciais, com exigência de nível superior e sem
exigência de nível superior.

- 131 -

Our Responsibility to People

EMPLOYEES WHO MAY RETIRE, BY REGION (%)

Midwest

Northeast

North

Southeast

South

Midwest

Northeast

North

Southeast

South

In the next 10 years

In the next 5 years

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

ed acre

ed alagoas

ed rondônia

ed roraima

eletrobras amazonas energia

eletrobras Cepel

eletrobras CGtee

eletrobras Chesf

24.0

21.7

42.88

0.19

2.2

23.4

18.1

12.9

16.9

72.7

66.0

13.0

45.5

eletrobras eletronorte

44.9

16.7

7.6

24.9

47.4

18.0

0.1

60.0

0.5

45.2

100.0

99.8

1.0

0.2

38.3

20.1

56.1

50.0

59.2

63.8

70.2

72.9

26.1

9.3

100.0

43.3

44.0

eletrobras eletronuclear

eletrobras eletrosul

2.0

0.3

1.2

eletrobras Furnas

58.8

59.3

holding

itaipu Binacional

33.3

25.0

Note: ED Piauí is not included.

- 132 -

0.3

1.0

46.6

0.3

0.5

47.9

1.4

25.0

43.0

28.7

14.55

0.04

6.06

8.0

8.2

6.0

0.1

99.7

51.2

21.7

99.7

56.7

28.8

0.7

43.9

0.1

42.2

25.5

66.0

9.7

68.1

100.0

22.9

21.9

50.3

47.0

11.6

10.2

42.0

22.0

44.7

23.6

58.0

13.1

31.4

33.2

Our Responsibility to People

EMPLOYEES WHO MAY RETIRE, BY REGION (%)

Midwest

Northeast

North

Southeast

South

Midwest

Northeast

North

Southeast

South

In the next 10 years

In the next 5 years

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

eletrobras eletronorte

44.9

16.7

7.6

24.9

47.4

18.0

0.1

60.0

42.0

22.0

0.3

1.0

46.6

0.3

0.5

47.9

1.4

25.0

ed acre

ed alagoas

ed rondônia

ed roraima

eletrobras Cepel

eletrobras CGtee

eletrobras Chesf

eletrobras amazonas energia

0.3

1.2

42.88

0.19

24.0

21.7

23.4

18.1

2.2

12.9

16.9

13.0

45.5

72.7

66.0

45.2

0.5

eletrobras eletronuclear

100.0

99.8

eletrobras eletrosul

2.0

1.0

0.2

38.3

20.1

eletrobras Furnas

58.8

59.3

56.1

50.0

59.2

63.8

70.2

72.9

holding

26.1

9.3

itaipu Binacional

33.3

25.0

100.0

43.3

44.0

Note: ED Piauí is not included.

50.3

47.0

0.1

99.7

51.2

21.7

99.7

56.7

28.8

11.6

10.2

25.5

66.0

9.7

68.1

100.0

22.9

21.9

43.0

28.7

14.55

0.04

58.0

13.1

31.4

33.2

6.06

8.0

8.2

6.0

44.7

23.6

0.7

0.1

43.9

42.2

- 133 -

Helicônia
Heliconia rostrata

- 134 -

our responsibility to
society

- 135 -

- 136 -

Our Responsibility to Society

Throughout our journey, we have built a solid
partnership with the communities in which we operate

With a structured set of corporate guidelines,
we have transformed the Vision, Mission, and
Values of the company into attitudes, behaviors
and management practices. In doing so, we have
strengthened our role in society as a catalyst for

sustainable development by preparing or investing
in actions focused on culture, education, health,
assurance of children’s rights, job and income
generation, environment, professional qualification,
and assurance of citizenship, as well as mitigating
actions established in our licensing process as a
result of the impacts caused by our activities.

Communities

The Eletrobras companies conduct studies for
the implementation of their developments and
maintain a relationship with the social groups
involved. In these studies, the target-audience
is identified in order to proceed with these social
and environmental actions for compensation,

mitigation, and reparation, as set forth in the
environmental licensing process (Environmental
Impact Studies, Preliminary License, Basic
Environmental Project, Installation License, and
Operation License). In addition, the Eletrobras
companies benefit the local communities through
Social Responsibility programs.

Engaging with communities

The relationship of the Eletrobras companies with
the communities in which they operate has been
strengthened year after year through initiatives
involving respect and partnership.

The participation of the affected people and
communities occurs through meetings and other
gatherings designed to inform them of the status
of projects and also through formal public hearings
promoted by environmental agencies. When the

Impact on communities

Preliminary License is obtained, the next step is to
take the project further, and the programs provided
in the EIA are detailed. In this step, negotiations
with groups subject to expropriation are crucial, as
are their conditions and the way they are conducted.
The Eletrobras companies seek to promote
improvements in the local community by raising
housing standards and improving sanitary and road
infrastructure, among others.

The operations of the companies may produce
a high or low social and environmental impact
depending on the characteristics of the region
where they are being implemented. The
identification of affected social groups takes
place at the start of the planning process. As
the planning stages advance, specific studies are
conducted in order to get to know the expectations
of the population and their lifestyle, economic base,
and organization. The issues, such as the increase
in migrant population, changes in the use of land,
impact on infrastructure, changes in landscape,
changes in social structures and local culture,

among others, are part of the scope of the surveys
conducted in environmental studies in order to
propose measures that minimize negative impacts
and maximize positive ones. These measures are
carried out by each company, according to their
specific situation. (GRI SO1; SO9; SO10; 4.16)

Among the actions taken, we can highlight:

• The continuity of the Plan for Regional Insertion

of UHE Tucuruí - Pirtcuc, through which Eletrobras
Eletronorte contributed significantly with the
Sustainable Development Plan of the Micro
Region Surrounding UHE Tucuruí - PDST.

- 137 -

Our Responsibility to Society

• The Eletrobras Eletronuclear Medical Assistance

Fund (FEAM) administers the Praia Brava Hospital,
which assists employees and the community.
Currently, 80% of medical services are provided
through the Unified Health System (SUS).

CGTEE and Communities Forum to present to
the community the programs that are being
promoted in partnership with CGTEE, in order to
improve the quality of life of the population of
Candiota and neighboring areas.

• ED Alagoas trains community leaders in Maceió
to work as Social Agents for Citizenship, with the
important role of teaching the local people to
build a more equal and fair society. The lectures
address topics such as Conscious Consumption,
Citizenship Concepts, How to Turn Popular
Initiatives into Law, and Safe Use of Electricity.

• Annually, Eletrobras CGTEE holds the Regional

• Through the Program Cultivando Água Boa,

Itaipu Binacional develops actions that involve
environmental education, fishing, medicinal
plants, family and organic agriculture, young
gardeners, sustainability for Indigenous
communities, biodiversity, and environmental
monitoring and evaluation. To find out more
about the program, go to: www2.itaipu.gov.br/
aguaboa/

Traditional communities
In previous years, Eletrobras has developed studies
on the feasibility of large hydroelectric projects that
impact Indigenous communities. With the National
Indian Foundation (Funai), the company has
conducted a set of actions that involve meetings
about projects and the development of programs
for compensation, among others. (GRI EU19)

The Eletrobras companies did not register any
possible case of violation of Indigenous rights in
2012.

Eletrobras Eletronorte has maintained a program for
25 years with actions to protect the Waimiri Atroari
Indigenous community. This relationship began as
a result of the loss of a portion of land and natural
resources in their traditional area of occupation,
removal of villages and other impacts arising out of
the construction of the Balbina Hydroelectric Plant.
The company signed immediate commitments,
and mid- and long-term commitments with the

CaseCase

National Indigenous Peoples Foundation aiming
to compensate and support the community. The
company is also responsible for the Parakanã
Program, developed as a result of the inundation of
their lands for the formation of the reservoir for the
Tucuruí Hydroelectric Plant.

Both programs to compensate the impacts of the
hydroelectric plants of Eletrobras Eletronorte to the
Waimiri-Atroari and Parakanã peoples are more
than 20 years old and nationally and internationally
recognized for the recovery of their population and
the actions to value their culture and protect their
territory.

In 2012, due to the letter of intent entered into by
Eletrobras and Funai, we developed projects, which
had as their main goal to strengthen the productive
infrastructure and social autonomy of 26 Kayapó
villages, helping over 6,000 Indigenous people,
totaling an investment of R$ 2 million. (GRI HR9)

System for Vessel Transposition
Norte Energia1 is the company responsible for the construction and operation of the Belo Monte
hydroelectric plant in Pará. In 2012, it started the work for the implementation of the System for
Vessel Transposition in the Pimental Ranch, where the main dam of the development is located.

1 Norte Energia is a private company incorporated for the construction of Belo Monte and has shareholding interest on Eletrobras Eletronorte (19.98%), Eletrobras Chesf (15%),

and holding (15%).

- 138 -

Our Responsibility to Society

The goal is to allow Indigenous and riparian communities, who use this part of Xingu River for
transportation, to be able to continue using it safely during the period of work and also during
the entire period of the plant’s operation.

The mechanism, which opened in January 2013, can transport small or large vessels of up to
50 tons upstream or downstream. The system has signaling buoys, lights for night navigation,
and clear instructions to help skippers. In addition, it removes the vessels from the water and
takes them from one side of the dam to the other, connected by a 700-meter-long lane. While
the vessel is being moved, its passengers are transported by van. If there are several boats
waiting to transfer, passengers may use the support structure where there are bathrooms, a
lounge, and waiting room.

Concern with social issues

Eletrobras seeks to implement its developments
in a way that prevents displacement of people and
keeps environmental impacts to a minimum. The
Eletrobras companies develop their activities in
accordance with legislation and regulations in
effect. During the feasibility studies for projects,
the EIAs are developed with their scope defined by
environmental licensing agencies. Among the most
commonly conducted studies during this stage,
we can highlight the Socioeconomic Registry, a
tool for the identification and qualification of the
population affected by developments.

In 2012, the hydroelectric projects of São Luís do
Tapajós (PA) and Jatobá (PA), according to Inter-
ministerial Ordinance 340/2012, presented the

Social and environmental projects

Registry Plans of the surrounding areas to the Inter-
ministerial Committee of Socioeconomic Registry.
These will be the first Brazilian hydroelectric
projects to follow this new regulation. The use
of the Socioeconomic Registry will provide legal
security for those involved in the process, especially
investors and affected populations, decreasing the
occurrence of conflicts.

In 2012, 1,243 people were physically displaced
due to the companies’ developments. In addition,
2,666 people were economically displaced; that is,
there was loss of assets or access to assets, which in
some cases meant the temporary loss of livelihoods.
(GRI EU20, EU22)

The Eletrobras companies maintain permanent
channels for communication, dialogue, and
negotiations with society and the communities
where the companies operate in order to contribute
solutions to social problems that affect people
under social risk.

In this sense, resources are provided to support
and develop social projects demanded by society in
different areas of action: education, health, culture,
sports and leisure, job and income generation,

assurance of children’s rights, and environment.
In 2012, more than R$ 65 million was invested in
social and environmental projects geared toward
communities.

The project selection respects the mission,
values, and corporate strategies of the Eletrobras
companies, in addition to complying with the public
policies of the federal government and with the
assumptions of the UN’s Millennium Development
Goals and Global Compact.

- 139 -

Our Responsibility to Society

Support to Culture and Sports

In the area of culture and sports, Eletrobras
prioritizes projects that receive fiscal incentives
foreseen in the specific legislation, such as the
Rouanet Act and the Sports Incentive Law. The
cultural program of the Eletrobras companies
earmarked in 2012, R$ 23 million to support
projects in the following areas: theater, audiovisual,
immaterial heritage and traveling of theater plays.
Also in 2012, the Program to Sponsor Events in

the Electric Sector of the Eletrobras companies
was launched, and 32 relevant technical-scientific
projects were selected for the company’s business
areas. In the area of sports, Eletrobras invests in
projects that contribute to social inclusion through
the practice of sports. In the segment of Yield
Sports, we highlight the sponsorship to Clube de
Regatas Vasco da Gama and the Brazilian basketball
Confederation - CBB.

EXTERNAL SOCIAL INDICATORS

2012

2011

social Projects

education

health and infrastructure

income and Job Generation

assurance of Children’s and adolescents’ rights

environment

sports and leisure

sports Projects

With Incentives (Sports Incentive Law)

Without Incentives

Cultural and institutional Projects

Cultural Sponsorship With Incentives

Institutional Sponsorship Without Incentives

Philanthropic donations

Financial resources

total investments

11,088,975.86

38,588,489.51

8,784,217.35

650,650.67

2,991,348.43

3,248,563.82

2,933,119.18

28,837,964.56

38,838,980.19

51,273,871.95

12,789,051.14

35,106,759.65

7,568,854.34

1,932,476.65

2,576,373.91

4,084,747.56

1,926,327.70

31,529,618.76

26,381,062.27

23,997,842.84

6,180,392.70

193,416,574.22

3,003,630.00

150,896,744.82

Note: the companies ED Alagoas, ED Piauí, ED Rondônia, ED Roraima; Eletrobras Amazonas Energia, and Itaipu Binacional were not considered.

Cases

Socioeconomic Development
The Eletrobras companies focus on investing in projects that foster socioeconomic development
in the communities where they operate.

Previous successful experiences motivated Eletrobras to develop complementary projects to the
Luz para Todos program, focusing on the productive use of electricity, such as projects involving
the Production Community Centers (CCPs).

The CCPs are small community developments supported by Eletrobras and focused on

- 140 -

Our Responsibility to Society

encouraging the productive use of electricity in rural areas through its use in beneficiation
processes, which adds value to products of small farmers belonging to associations/
cooperatives. In the units working in partnerships led by Eletrobras, electricity becomes an
input for production and a mechanism for the development of the Brazilian countryside. This
community initiative results in economic growth for the groups involved, the strengthening of
social relationships among participants of the project, and a contribution to the feasibility of
the rural electricity market. (GRI 4.12)

Public Policies (GRI SO5; 4.12; 4.13)
The Eletrobras companies participated in the development of public policies in connection with such organizations as:
• Agência Internacional de Energia Atômica (AIEA);

(Abraget);

• American Nuclear Society/Seção Latinoamericana

• Associação Brasileira para o Desenvolvimento das

(ANS);

Atividades Nucleares (Abdan);

• Associação Brasileira das Companhias Abertas

• Associação Comercial do Rio de Janeiro (ACRJ);

(Abrasca);

• Associação Brasileira das Distribuidoras de

Energia Elétrica (Abradee);

• Associação de Empresas Proprietárias

de Infraestrutura e Sistemas Privados de
Telecomunicações (Aptel);

• Associação Brasileira das Empresas Geradoras de

• Associação Nacional dos Carroceiros e Catadores

Energia Elétrica (Abrage);

de Materiais Recicláveis (Ancat);

• Associação Brasileira das Grandes Empresas de

• Câmara de Comercialização de Energia Elétrica

Transmissão de Energia Elétrica (Abrate);

(CCEE);

• Associação Brasileira da Indústria Elétrica e

• Câmara de Comércio Americana (Amcham);

Eletrônica (Abinee);

• Câmara Setorial de Agricultura Orgânica e

• Associação Brasileira das Instituições de Pesquisa

Agroecológica;

Tecnológica (Abipti);

• Centro Brasileiro de Relações Internacionais

• Associação Brasileira de Comunicação

(Cebri);

Empresarial (Aberje);

• Centro Internacional Celso Furtado de Políticas

• Associação Brasileira de Energia Nuclear (Aben);

para o Desenvolvimento (Cicef);

• Associação Brasileira da Infraestrutura e

• Centro para Inovação e Competitividade (CIC);

Indústrias de Base (Abdib);

• Associação Brasileira de Ensaios Não-Destrutivos

e Inspeção (Abendi);

• Associação Brasileira de Treinamento e

Desenvolvimento (ABTD);

• Associação Brasileira dos Contadores do Setor de

Energia Elétrica (Abraconee);

• Associação Brasileira dos Agentes

Comercializadores de Energia (Abraceel);

• Clean Coal Centre (CCC);

• Clube de Engenharia do Rio de Janeiro;

• Comitê Permanente para questões de Gênero
do Ministério de Minas e Energia e Empresas
Vinculadas;

• Sistema de Gestão da Ética do Poder Executivo
Federal, sob a Coordenação da Comissão de
Ética Pública – CEP, por força de lei, Decreto
6029/2007;

• Associação Brasileira dos Geradores Térmicos

• Fórum Nacional de Ética das Empresa Estatais;

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Our Responsibility to Society

• Comitê Interministerial para Inclusão Social
e Econômica dos Catadores de Materiais
Reutilizáveis e Recicláveis (Ciisc);

• Comitê de Entidades no Combate à Fome e pela

Vida (COEP);

• Sustainable Energy for All, rede mundial criada
pela ONU para a universalização da energia no
mundo;

Iguaçu (Comparni);

• Conselho Mundial da Água (CMA);

• Associação Brasileira da Infraestrutura e Indústria

de Base (Abdib);

• Fundação Abrinq;

• Fundação Comitê de Gestão Empresarial

(Funcoge);

• Fórum de Meio Ambiente do Setor Elétrico

• Fundação Nacional da Qualidade (FNQ);

Brasileiro (Fmase);

• Instituto Ethos de Empresas e Responsabilidade

• International Hydropower Association (IHA),

Social;

organização não-governamental que promove a
hidroeletricidade como uma solução sustentável
na geração de energia limpa, na gestão
responsável dos recursos hídricos e das mudanças
climáticas;

• Comissão de proteção ao Programa Nuclear

Brasileiro (Copron);

• Instituto Nacional de Investidores (INI);

• Instituto Nacional de Pesquisa e Desenvolvimento

de Empresas Inovadoras (Anpei);

• Instituto para o Desenvolvimento de Energias

Alternativas da América Latina (Ideal);

• Instituto Qualidade Minas (IQM);

• Comissão de Integração Elétrica Regional

• International Energy Agency (IEA);

(Bracier);

• Conselho Empresarial Brasileiro para o
Desenvolvimento Sustentável (Cebds);

• Comitê de Meio Ambiente da ACRJ;

• Comissão de Integração Energética Regional

(Cier);

• Comissão de Produção Orgânica no Paraná

(Cporg-PR);

• Comitê Brasileiro de Barragens (CBDB);

• Comitê Brasileiro de Eletricidade (ABNT/Cobe);

• Comitê Brasileiro do Conselho Mundial de Energia

(CME);

• Comitê Brasileiro do Pacto Global (CBPG);

• Comitê Gestor e Conselho Diretivo do Centro de
Saberes e Cuidados Socioambientais da Bacia do
Prata;

• Comitê Intergovernamental Coordenador dos

Países da Bacia do Prata (CIC);

• Comitê Nacional Brasileiro de Produção e
Transmissão de Energia Elétrica (Cigre);

• Conselho Consultivo do Parque Nacional do

• Movimento Brasil Competitivo (MBC);

• Movimento Catarinense para a Excelência (MCE);

• Operador Nacional do Sistema (ONS);

• Organização das Nações Unidas para o
Desenvolvimento Industrial (Onudi);

• Radiation Emergency Medical Preparetness and

Assistance Network (Rempan);

• Rede Nacional de Mobilização Social (Coep);

• Rede de Tecnologia e Inovação do Rio de Janeiro

(Redetec);

• Section of the Latin American Nuclear Society

(LAS);

• Serviço Nacional de Aprendizagem Industrial

(Senai);

• Sindicato dos Eletricitários do Rio Grande do Sul

(Senergisul);

• Sindicato dos Engenheiros do Rio Grande do Sul

(Senge);

• Serviço Social da Indústria (SESI);

• World Association of Nuclear Operators (Wano);

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Our Responsibility to Society

• World Business Council for Sustainable

Development - Conselho Empresarial Brasileiro
para o Desenvolvimento Sustentável (Cebds);

• World Nuclear Association (WNA).

In compliance with legislation, the Eletrobras

companies do not support or contribute to political
parties or political campaigns of candidates for
elected positions. This guideline is ratified by the
Code of Ethics of the Eletrobras companies. (GRI
SO6)

Responsibility in the value chain

engagement with suppliers

The Eletrobras companies are committed to
effectively contributing to sustainable development
in the areas where they operate; therefore, they
request that their suppliers and service providers
prioritize the use of sustainable manufacturing
in their processes. All investments made are
associated with actions that focus on maintaining
a harmonious relationship with their supply
chain, seeking competitive advantages and local
socioeconomic development.

Eletrobras, in accordance with its Sustainability
Policy, guides its businesses through internationally
recognized management practices in order to
maximize positive social and environmental impacts
and minimize negative impacts arising from their
activities. By recommending that a supplier follows
sustainability standards in the manufacturing of its
products or in service provision, we encourage these
companies to contribute in the same way. Also,
through our Declaration of Commitment on Climate
Change, we seek the reduction of greenhouse gas
emissions of suppliers and customers.

One way to ensure the effectiveness of these
actions is through resolutions that are listed in
the Code of Ethics of the Eletrobras companies.
The established commitments of conduct in the
relationship with suppliers are as follows:

• Select and hire suppliers and service providers
based on legal, technical, quality, cost, and
punctuality criteria, demanding an ethical profile
in the management of social and environmental
responsibility.

• Reject practices of unfair competition, child

labor, abuse and sexual exploitation of children
and adolescents, bonded labor or demeaning
work practices, as well as any form of physical,
sexual, moral, or psychological violence and other
practices contrary to the principles of the Code of
Ethics; this includes practices in the production
chain of suppliers. In case of violation, offenders
will be reported.

• Do not provide any favors or paid service to

suppliers and service providers with whom they
maintain a relationship by virtue of their activities
in the company.

• Treat suppliers’ and service providers’ employees

with respect and kindness according to the
principles of the Code of Ethics.

• Protect and properly deal with confidential
registry data and information related to
customers, suppliers, service providers and
other partners obtained through corporate
relationships.

• Do not accept or offer gifts, gratuities, or

advantages, even in the form of preferential
treatment to customers, suppliers, service
providers, or other partners connected with the
business or interests of the Eletrobras companies.

Establish and maintain relationships and
communication with customers, suppliers, service
providers, and other partners according to the
ethical principles set forth in the Code of Ethics of
the Eletrobras companies, offering equal treatment
to each, avoiding any type of privilege and
discrimination (ethnic, religious, gender), providing
equal opportunities and respecting differences.

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Our Responsibility to Society

To see the full version of the Code of Ethics of the
Eletrobras companies, go to www.eletrobras.com

This Code is shared with all supplying companies
in order for all of them to be aligned with the same
practices.

In 2012, a total of 8,171 (100%) of agreements for
significant investments had human rights clauses;
of this total, 7,222 (88%) were revised regarding
human rights aspects. The companies ED Acre, ED
Rondônia, ED Roraima, Eletrobras CGTEE, Eletrobras
Chesf, Eletrobras Eletronuclear, Eletrobras Eletrosul,
and Eletrobras Furnas registered 3,015 significant
suppliers; of these, 12 contracts (0.4%) were refused
or were subject to other actions as a result of human
rights evaluations. (GRI HR1; HR2; HR8, HR10)

The companies Eletrobras Chesf, Eletrobras
Furnas, and Itaipu Binacional offered trainings to
111 (46%) of their 239 safety team employees

on organizational policies or specific procedures
related to human rights issues and their application.
All employees of the company must follow and
practice what is set forth in the Code of Ethics
related to human rights and immediately report
people who do not comply with it. The safety
teams of the remaining Eletrobras companies
are outsourced, and the employer, according to
contract clauses, is responsible for the training on
this subject. (GRI HR8)

In cases of non-compliance with human rights
clauses, a deadline will be set for their defense and,
if necessary, for the supplier to make the necessary
adjustments. If the supplier does not adjust, the
Eletrobras companies will determine the measures
that will apply, such as fines and termination of
contract. In cases of recurrence, the contract will be
unilaterally cancelled.

expenditures with local suppliers

According to the legislation in effect for public
hiring and acquisitions, Law 8,666/93 which
instituted rules for contracts and bidding, Eletrobras
is not authorized to establish a policy that favors
local suppliers; that is, it is not permissible to hire
services of suppliers based on their location.

However, it is possible to measure the percentage
by region. In 2012, the Eletrobras companies spent
approximately R$ 4 billion in purchases. Of this
total, 78% was purchased from suppliers considered
local; that is, suppliers from the same region as the
companies. (GRI EC6)

Expenses with Suppliers

22%

78%

Local suppliers

Non-local suppliers

Note: ED Alagoas, ED Piauí, Eletrobras Amazonas Energia, Eletrobras Chesf, Eletrobras Eletrosul, and Itaipu Binacional were not considered.

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Our Responsibility to Society

Case

Meeting with suppliers
In 2012, Eletrobras promoted a Meeting of Suppliers, which focused on adding value to the
holding’s relationship with its suppliers, intensifying integration and providing alignment of
information referring to hires, following the main guidelines and requirements to maintain
and develop the supply chain. This meeting aimed to maximize supplier performance and
minimize non-compliance in hiring and execution of agreements. The meeting promoted
the engagement of suppliers with sustainability practices that permeate the hiring process
of the company. In this meeting, other subjects were presented such as issues with bidding
and administrative contracts; the Code of Ethics of the Eletrobras companies; information on
social responsibility; environmental issues; new paths for the company; electronic invoicing;
corporate sustainability and its application in hiring; and the procurement logistics of the
Eletrobras companies.

To ensure that suppliers meet the guidelines of the
Code of Ethics, the Eletrobras companies conduct
a risk analysis for collective association, child labor,

and bonded labor or bonded-like labor. The table
below shows potential risks related to the chain of
suppliers. (GRI HR5, HR6, HR7)

Risks related to the chain of suppliers

Number of operations and significant suppliers in which the employees’ right to exercise
freedom of association and collective bargaining may be at risk (*)

Operations and significant suppliers identified as having significant risk for incidents of child
labor (**)

Operations and significant suppliers identified as having significant risk for incidents of
forced or compulsory labor (***)

2012

2011

(*) Does not include ED Piauí and Eletrobras Eletronuclear.
(**) Does not include ED Alagoas, ED Piauí, Eletrobras CGTEE, and holding.

(***) Does not include ED Alagoas, ED Piauí, and holding.

Accident prevention
The Eletrobras companies promote specific actions
for contingencies. The procedures in response to
risks and emergency situations vary according to
the characteristics of each business, the hazards
related to the operations, and the technologies
used.

In 2012, for example, Eletrobras CGTEE
developed, with the participation of employees,
specific contingency plans for natural disasters,

environmental impacts, fires, strikes, and image
crises. The communities potentially influenced,
civil defense agencies, fire departments, etc. did
not participate in the preparation of this material;
however, the prepared guidelines foresee their
intervention when needed, depending on the level
of severity and extension of impacts resulting from
claims of this nature.

Eletrobras Eletronuclear conducts a general

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Our Responsibility to Society

emergency simulation that shows the capability of
activating emergency centers and evaluates the
ability to command, coordinate, and control them,
as well as to verify the efficiency of the logistics
in case of an emergency. The Emergency Plans
for Angra 1 and Angra 2 foresee the immediate
mobilization of a national network of contacts
involving hundreds of professionals on three levels
of government (municipal, state, and federal).

In the event of an electricity outage, Eletrobras
Furnas makes available different ways to manage
its contingencies, depending on the site at which
it occurred and the cause of the outage. For events
at the company’s substations and plants, there
are operation teams working in shifts 24 hours
a day, which can provide first assistance. For
events outside the installations, as is the case for
transmission lines, the company has an action plan
for emergencies that is put into effect after analysis

of the site where the fault occurred. The analysis
includes topography, access conditions, number
of damaged towers, and other factors that serve as
input data in order to assess the human resources
and materials needed for the team to get to the
emergency site as quickly as possible and restore
transmission service.

In 2012, Eletrobras Chesf’s work group defined
models for contingency plans for social,
environmental, and natural disaster issues which
will be implemented as pilot plans at a hydroelectric
plant and a substation. These models will then
be reapplied to other operational units, according
to the schedule established in agreement with
operational areas, between 2013 and 2017. In
2013, the report on these actions will be submitted
to the Executive Board and Board of Directors for
approval. (GRI EU21)

Product liability

The Eletrobras companies seek to inform their
consumers on everything the energy sector
legislation recommends in order to ensure
transparency and access to information. These
efforts serve customers of the electricity
distribution companies who seek to understand
the characteristics of their services and products
in order to promote good use and safety and be
warned about possible risks and impacts that
electricity may cause.

The electricity bill is one of the most important
channels of communication with the customer.
In it, they can find technical details and general
information on safety and correct use, including
consumption, tariffs, date of reading, taxes,
indicators of quality in supply, the contact number
of the distributor, and other technical information
on voltage and type of connection and meter. The
companies also promote educational projects on

the safe and efficient use of electricity, highlighting
commercial aspects (consumption, tariffs, etc.), as
well as consumers’ rights and duties.

The users can also obtain information on electricity
through the following channels (GRI PR3):

All information can be found at the service centers
of distribution companies;

On the companies’ website, information is available
on network safety, procedures in case of accidental
electric shock, guidelines for complaints regarding
tariffs, guidelines for equipment breakdown, and
guidelines for all our consumers on issues related to
electricity supply.

In spite of the efforts made by the Eletrobras
companies in disclosing information on safety
related to the product, in 2012, the following
accidents were registered involving the public and
the company’s assets (GRI EU25):

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Our Responsibility to Society

number of accidents and deaths

NUMBER

number of individuals involved in accidents

number of deaths

Pending lawsuits related to health and safety in 2012

settled lawsuits related to health and safety in 2012

2012

2011

124

Note: Data considers the companies: ED Acre, ED Rondônia, ED Roraima, Eletrobras Amazonas Energia, Eletrobras Eletronorte, Eletrobras Eletrosul, and

holding.

Customer satisfaction index (GRI PR5)
The Eletrobras companies are constantly seeking to
improve their services using different mechanisms
to identify the needs and expectation of customers1.
In 2012, the six distribution companies of Eletrobras
and the generation and transmission companies
Eletrobras Chesf and Eletrobras Eletronorte
conducted a customer satisfaction survey.

In the surveys conducted in 2012, the Customer
satisfaction index for the organization as a whole
was 80.27% for generation and transmission (G&T)
and 63.83% for distribution (D). For customer
service, the satisfaction rate was 98.60% for
generation and transmission (G&T), which is
consistent with 2011, and 67.55% for distribution
(D), which is slightly up from 2011.

Generation and transmission (G&t)

The satisfaction surveys for G&T are conducted
taking into consideration the commercialization
of electricity (purchase and sale), products, and
services. The surveys are conducted in many
forms: in person, online, in periodical meetings,
and through questionnaires. The monitoring of
customer satisfaction is conducted individually

by Eletrobras Chesf, Eletrobras Eletronorte, and
Eletrobras Eletrosul. The companies conduct
periodical meetings, technical visits, and
technical exchanges with their customers; make
communication channels such as mail, e-mail,
telephone, and websites available; and ensure that
all issues receive formal consideration.

The definition of customer includes the person who is responsible for a registered consumer unit and consumers are the ones responsible for energy consumption in this
consumer unit. In a house, for instance, there is only one customer, but several consumers.

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Our Responsibility to Society

Satisfaction index G&T

100%

80%

60%

40%

20%

The Organization as
a whole

Customer service

2010

2011

2012

Note: Eletrobras Chesf is not included in 2010 data.

distribution
The distribution companies have used the Abradee
(Brazilian Association of Electricity Distribution
Companies) satisfaction survey since 1999.

The Social Responsibility Attributes were also
assessed. They consist of ten items: a) a company
that fights fraud; b) a company that cares for the
environment; c) a company that offers support for
or promotes social programs; d) a company that
offers support for or holds cultural events; e) a

company concerned with accident prevention in the
electricity network and safety of the population; f)
a company that invests in taking electricity to areas
not served; g) a company that contributes to the
economic development of its city; h) a company
that helps citizens with special needs gain access to
all forms of customer communication; i) an honest
company that fulfills its obligations to all audiences
with which it operates, and; j) a company that offers
good working conditions to its employees.

Satisfaction index - distribution

80%

70%

60%

50%

40%

30%

20%

10%

The Organization
as a whole

Customer
service

Distribution
service

Social Responsability
Attributes

2010

2011

2012

Note: The data of 2010 does not consider ED Alagoas, ED Rondonia and Eletrobras Amazonas Energia.

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Our Responsibility to Society

The Eletrobras Distribution Companies also
participated in the survey conducted by Aneel,
called Aneel’s Consumer Satisfaction Rate (IASC).
The results that measured the satisfaction
rate of residential consumers in relation to
services provided by electricity distributors
can be accessed here: www.aneel.gov.br/area.
cfm?idArea=755&idPerfil=2

In the distributing companies, survey results are
published through the company’s communication
channels. For employees, results are disclosed to
managers and people responsible for the areas
involved in the survey. For customers, results

are revealed in meetings with the Council of
Consumers², whose main goal is to represent the
interests of consumers with the company and the
consumer segments, guided by the equality and
balance principle. Among the topics discussed
are improvements in customer service and
tariffs applied to electricity supply services; the
ongoing and concluded projects for investment
in improvement; and the methodology for tariff
revision. In these meetings, the main issues
raised in the survey and the suggestions made by
consumers are heard.

Cases

Eletrobras Cepel Satisfaction Survey
Eletrobras Cepel, as a research center and service provider, also conducts internal and external
customer satisfaction surveys. In 2012, the Customer satisfaction index was at 92% for services
provided by the laboratories and 84% for services provided by the certification activity.

Integrated Satisfaction Survey
Eletrobras Eletronorte, through the Coordination for Commercialization of Electricity, conducted
its first Integrated Customer Satisfaction Survey for the Generation and Transmission Businesses
with a commercial focus, the result of a priority project based on the “Customer Window”
method. The tool LimeSurvey was used for online data collection.

The survey included customers of the generation business (free/potentially free consumers,
traders, CCEE, distributors, and ONS/BSB) and of the transmission business (ONS/RJ and users of
the basic network: distributors, free/potentially free consumers, generators, and importers).

The following dimensions were evaluated by grades: service, commercial, product/service,
management of electricity commercialization contracts, management of transmission contracts,
metering for billing, and image.

*For more information on survey results, see the item Customer satisfaction index.

The Consumer Council was instituted due to a resolution made by the Brazilian Electricity Regulatory Agency – Aneel, which is an advisory institution, with no legal profile and
unremunerated, composed of six members and their alternates, appointed by institutions that represent types of consumers (Residential, Commercial, Rural, Industrial, and
Public Power) and Consumer Defense (Public Ministry).

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Our Responsibility to Society

Information with responsibility

Since 2011, Eletrobras has been voluntarily
affiliated with the Brazilian Advertisers Association
(ABA). As an affiliated company, it facilitates
the technical development of its professionals
in marketing and communication, resulting in
competitive assets in business. It also receives
information related to the best practices adopted by
other companies through access to forums, courses,
and eventual participation in technical committees.

In the advertising area, our activities are assessed
and approved by the Department for Social
Communication of the Presidency (Secom-PR).
The department analyzes each media plan and the
content of all aired campaigns.

We make available several communication
channels with the public, provided for in the
following: in the guidelines of the Sustainability
Policy, in the Policy for Integrated Communication,
in the Environmental Policy, and in the Code of
Ethics of the Eletrobras companies, as well as in
other regulations that show our commitment to
transparency and constant improvement of good
practices in our relationship with stakeholders.
Therefore, we focus on the dialogue with
several social agents who have been involved
since the beginning of the planning process for
developments. We also establish communication
processes and disclose information to the
audiences on topics related to electricity, energy

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Our Responsibility to Society

efficiency, and environmental actions that involve
our activities.

regulations and voluntary codes related to
marketing and advertising in 2012. (GRI PR7)

Eletrobras markets electricity, which is topic
constantly discussed by the public and of interest
of stakeholders. In order to meet the expectations
of stakeholders, the company makes several
institutional communication tools available to
address a variety of subjects. The main tools are the
Ombudsman, the channels Fale Conosco, telephone,
and Internet. (GRI PR6)

In 2012, the Eletrobras companies received no
significant fines for non-compliance with laws and
regulations. (GRI PR9)

There were no cases of non-compliance with

Eletrobras, based on the commitments to society
that guide our actions in transparency, ethics, and
corporate responsibility, prepares the content of its
institutional plays by focusing on the appreciation
of diversity and local culture, by showing the
support we give to social and environmental
actions, and by meeting the standards and rules
established by regulatory agencies such as the
State Department for Social Communication
of the Presidency (Secom-PR), the Standard-
Norms Executive Council (CENP), the Advertising
Self-Regulation Council (CONAR), and the
Communication Policy of the Eletrobras System.

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Guaraná
Paullinia Cupana

- 152 -

our responsibility to
the environment

- 153 -

- 154 -

Our Responsibility to the Environment

Global Compact Principles: 7; 8 and 9

Sustainable Development

Eletrobras invests in responsible management to
ensure the permanence of the company, without
affecting its commitment to the environment

Eletrobras has made a commitment to meet the
growing energy demand in Brazil that is based
on sustainable development principles which
align efficient production with environmental
preservation.

This commitment was strengthened in 2012, when

we published our Declaration of Commitment on
Climate Change and became signatories of the
document for sustainability, which was launched in
Rio+20 by the National Confederation of Industry.
These commitments motivate the company to
improve its management year after year by adopting
new technologies and actions aimed at preventing
and mitigating social and environmental impacts in
the communities where we operate.

Corporate environmental management
The environmental management activities
developed by Eletrobras include technical and
institutional support for the end-activities
developed by the company and are aligned with
strategic and corporate goals.

Our environmental management actions are led
by the guidelines of the corporate Environmental
Policy, by development activities within the scope
of the Environment Committee (SCMA), and by the
System of Indicators for Corporate Sustainability
Management (IGS).

Environmental Policy

The Environmental Policy presently in effect meets
its main goals by establishing general principles
and guidelines applicable to environmental
management in the Eletrobras companies,
considering the diversity in their business segment
(generation, transmission, and distribution) and
in their sources (water, nuclear, conventional
thermoelectric, wind power, and coal).

In 2012, we started the revision of our
Environmental Policy by formulating specific
guidelines related to subjects considered
priority in environmental management in our
developments. Thus, we selected seven topics to
improve the Policy; they are as follows: climate
strategy, environmental education, environmental
communication, biodiversity, management of use
and occupation of banks of reservoirs, relocation of
affected populations, and Indigenous issues. With

the exception of guidelines on the relocation of
affected populations and Indigenous issues, they
were concluded and approved within the scope of
SCMA in 2012. Its formal approval should occur
in 2013. Finally, the guidelines regarding climate
strategy received a different treatment, due to the
decision to present them individually in the format
of a “Declaration of Commitment.”

To find out more about the guidelines of this
policy and the Declaration of Commitment,
go to: www.eletrobras.com/elb/data/Pages/
LUMIS376C5AF5PTBRIE.htm.

www.eletrobras.com/ELB/main.
asp?View={564CE0B4-00B6-45E1-BBA3-9F34FF0
A5F71}&BrowserType=IE&LangID=pt-br¶ms=i
temID%3D%3B&UIPartUID=%7BD90F22DB-05D4-
4644-A8F2-FAD4803C8898%7D

Environment Committee (SCMA)

The SCMA is a technical and institutional space
for interaction among companies, discussion of
practices, and definition of common guidelines
for the treatment of social and environmental
issues. The board is composed of managers of
the environmental areas of the companies who
gather three times a year, and it has the support
of permanent work groups and temporary
commissions formed by representatives of the
technical teams of the companies in treating
subjects of common interest, previously defined and
approved by the committee.

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Our Responsibility to the Environment

In 2012, nine work groups were present and
their topics were as follows: 1) Environmental
Policy; 2) Legislation and Regulatory Framework;
3) Climate Strategy; 4) Environmental Costs; 5)
Environmental Management of Federal Companies;
6) Water Resources and Biodiversity; 7) Tools for
Environmental Management; 8) Environmental
Communication; and 9) Use of Reservoir Banks.
Additionally, four other commissions were present:
Environmental Education; Involuntary Relocation
of Populations; Indigenous Communities; and
Application of Resources for Environmental
Compensation.

System of Indicators for Corporate
Sustainability Management (IGS)

The IGS System has been under development since
2007. The increase in corporate sustainability
demands led to the broadening of the system,
initially designed to treat the environmental
dimension, to also fulfill the financial and social
responsibility dimensions, considering variables in
several areas of the company, such as Governance,
Energy Efficiency, and People Management, among
others.

Eco-efficiency
Below, we present the performance of our main
indicators in 2012.

Water and wastewater

The use of water in operations and administrative
activities of the Eletrobras companies is monitored
through the IGS tool.

Regarding the hydroelectric power plants, even
though a large volume of water is captured, almost
all of it is non-consumptive; that is, this water is
not effectively used, so it is returned in the same
condition to the bodies of water. The water
collected in the reservoirs formed by the dams of
hydroelectric power plants is conducted to the
powerhouse through channels, tunnels, and/or
metallic conduits and moves the turbines for the
generation of electricity.

At Eletrobras Eletronuclear and the coal-fired

In its environmental dimension, the goal of IGS
is to support the environmental management of
the Eletrobras companies, measuring variables of
environmental performance such as energy, water,
biodiversity, waste, legal compliance, and voluntary
actions. This allows for the standardization of
processes and the establishment of improvement
goals. The IGS data also provides input to certain
items of the Inventory for Greenhouse Gas
Emissions of the Eletrobras companies.

Since 2010, the system has been implemented
in all Eletrobras companies and is an important
strategic tool. Its configurations seek to ensure the
traceability of information through a certification
system in different management levels, being
already consolidated by the time they reach holding.

In 2012, approximately 230 employees of the
Eletrobras companies participated by adding data
to the IGS System and based on that data, we were
able to monitor 170 indicators and 249 variables.
In order to effectively use this tool in all companies,
we invested in training and promoted numerous
meetings for questions and suggestions.

thermoelectric Eletrobras CGTEE, the water is for
industrial use (cooling of equipment), and after
appropriate treatment, it is returned to water bodies
with appropriate monitoring.

In 2012, Eletrobras companies’ water consumption
in administrative offices was 5.8 million m3. Much
of this volume is due to the use of this resource, in
a non-consumptive manner, in the Hydrobiology
and Pisciculture station of the Furnas Hydroelectric
Plant.

Due to the low water level in reservoirs of
hydroelectric plants in 2012, there was more need
for the use the thermoelectric generation, which
explains the increase in water volume used through
surface collection of approximately 9 million m3.
The 3,465,993,312 m3 volume refers to sea water
used by Eletrobras Eletronuclear for the cooling of
equipment. (GRI EN8).

- 156 -

Our Responsibility to the Environment

Water used for administrative consumption, by source (m3)

SOURCE

surface water*

Groundwater**

supply companies***

CONSUMPTION

2012

4,166,391.68

743,939.12

932,814.32

2011

1,000,738.16

* Includes the companies: ED Rondônia, Eletrobras Eletronorte, Eletrobras Furnas, and Itaipu Binacional.
**Includes the companies: ED Piauí, Eletrobras Eletronorte, Eletrobras Furnas, and Itaipu Binacional.
***Includes the companies: ED Acre, ED Alagoas, ED Piauí, ED Rondônia, Eletrobras Cepel, Eletrobras CGTEE, Eletrobras Chesf, Eletrobras Eletronorte, Eletrobras Eletronuclear,
Eletrobras Eletrosul, Eletrobras Furnas, holding, and Itaipu Binacional.

Water used for thermoelectric power generation, by source (m3)

SOURCE

surface water*

supply companies**

others***

CONSUMPTION

2012

9,048,822.00

2,293.00

2011

978,372.00

57,901.09

3,395,149,452.00

3,465,993,312.00

*Includes the companies: Eletrobras CGTEE, Eletrobras Eletronorte, Eletrobras Eletronuclear, and Eletrobras Furnas.
**Includes the company Eletrobras Eletronorte.
***Includes the company Eletrobras Eletronuclear.

Case

Reduced use
In accordance with corporate guidelines, Eletrobras Eletrosul invests in good practices in order
to reduce water use in its activities. In 2012, it acquired a reservoir with the capacity to store
45,000 liters of rain water, used mainly for irrigation of a community garden near the unit
Regional Division for Maintenance in the West (DROE). In the administrative building of the
Sector for Maintenance of Campos Novos (Smcno), the company has an elevated reservoir, known
as sustainable tower, which combines a water reservoir for supply, a system for solar heating of
water, and a system for the use of rain water.

Eletrobras Chesf started a pilot project for Effective Management of Natural Resources in the
Thermoelectric Plant of Camaçari (UTC), responsible for mapping the consumption of the
unit, as well as identifying opportunities for improvement. The result of this study was a 55%
reduction in water use compared with the previous year.

The planned disposal of wastewater from the
Eletrobras companies, including nuclear plants,

totaled 9,768,825.46 m3, disposed of within the
quality standards required by law. (GRI EN21)

- 157 -

Our Responsibility to the Environment

WASTEWATER DISCHARGE, BY QUALITY AND DESTINATION (m3)

Total volume of wastewater discharged

total

Planned discharge of wastewater, by destination type

rivers

ocean

others

Undefined location

Planned discharge of wastewater, by treatment methods

Wastewater with no need for treatment

Unclassified wastewater

treated wastewater

9,770,360.46

9,189,155.00

187,658.46

262,689.00

129,323.00

64,338.00

216,131.00

9,488,356.46

Note: data include the companies Eletrobras CEPEL, Eletrobras CGTEE, Eletrobras Eletronorte, Eletrobras Eletronuclear, Eletrobras Eletrosul, Eletrobras

Furnas, and Itaipu Binacional.

Eletrobras Eletronorte disposed of 1,535 m3 of
unplanned wastewater in 2012. Aware of the impact,
the company invested in treatment stations focused on
the appropriate disposal of its wastewater in order to
eliminate unplanned disposals.

Eletrobras Eletronuclear, for instance, ensures
that the standards set forth by legislation are
met through Procon Água; it provides monthly
communication on the results of the wastewater
procedures performed in order to meet these
standards.

Eletrobras CGTEE disposes of its wastewater
through the production units and meets all quality
standards set forth in the environmental legislation
in effect. More information on CGTEE’s wastewater
management can be found at:
www.cgtee.gov.br/sitenovo/index.
php?secao=103&periodico=62

Energy

With respect to the direct use of electricity by the
Eletrobras companies, the focus for 2012 was on
energy consumption for the operations of the
companies, excluding use for electricity generation,
which is available in the SIN network.

This direct energy comes from primary renewable
sources (ethanol) and non-renewable sources
(natural gas, liquefied petroleum gas, diesel, etc.)
and is used, for example, in machinery, in the
operation of thermoelectric plants, and in the
vehicle fleets, among other operations.

Below, we present a chart with the main sources of
direct energy used by the Eletrobras companies in
thermoelectric generation:

- 158 -

Our Responsibility to the Environment

Main Sources used for Thermoeletric power generation

15%

19%

Natural Gas

Coal

Fuel Oil

Diesel Fuel

Uranium

54%

In 2012, we registered a total consumption
of 515,000 GJ of energy (renewable and non-
renewable) for administrative activities and 217
million GJ for thermoelectric generation. Compared

with the previous year, the energy consumption
reflected a considerable increase, mainly due to the
inclusion of Eletrobras Furnas in the IGS system.
(GRI EN3)

Fuel Consumption - GJ

Type of Fuel

ethanol

natural Gas

RENEWABLE

Compressed natural Gas

Liquefied Petroleum Gas

non-
RENEWABLE

Coal

Gasoline

Fuel oil

diesel Fuel

two-stroke oil

aviation kerosene

Uranium

total

Administrative Activities

Thermoelectric Power Generation

2012

2011

28,369.44

26,568.70

2012

2011

481.92

300.21

5,526.42

126.00

12,536,482.18

1,796,037.76*

242.87

878.78

33,824,311.88

26,083,998.31

120,648.82

28,743.35

12,696,182.74

1,242,762.03

354,754.29

128,717.99

41,575,866.60

8,250,547.69

355.90

4,927.01

17.98

7,099.98

116,468,740.88

111,922,556.94

515,364.00

192,395.65

217,101,584.28

147,499,864.97

Note: The gaps represent the absence of consumption in the referring sources.
* The information referring to the natural gas used in the thermoelectric plants for 2011 was revised and went from 1,861,901,349.51 GJ to 1,796,037.76 GJ.

- 159 -

Our Responsibility to the Environment

Main Fuels used in the Administrative Activities performed by the
Eletrobras Companies

23%

69%

Ethanol

Gasoline

Diesel Fuel

Others

Another energy source used by the Eletrobras
companies is indirect energy involving energy
consumed through intermediate sources; that is,
the energy used in the form of electricity.

The table below presents the distribution of
the consumption of electricity in the Eletrobras
companies:

Total
electricity
consumption

MWh

Administrative
Activities

Hydroelectric Power
Generation

Thermoelectric Power
Generation

Grand Total*

2012

2011

2012

2011

2012

2011

2012

2011

51.110,67 105.423,04

279.444,58

62.373,01 1.351.748,29

924.139,23 1.782.303,54 1.191.935,28

43.998,41 379.522,93 1.017.144,18 584.542,84 4.488.621,43 3.326.901,24 6.049.764,02 4.290.967,01

In 2012, approximately 6 million GJ or 1.8 million
MWh were purchased to supply the demand for
electricity in the production and management
processes of the organizations. (GRI EN4)

a result of the low rainfall rates. In addition,
monitoring of energy consumption was expanded
in administrative activities and in hydroelectric
generation.

The increased consumption of electricity in
hydroelectric generation is due to the expansion
of the coverage of data from the companies Itaipu
Binacional, Eletrobras Amazonas Energia and
Eletrobras Furnas.

The increased volume of energy from
thermoelectric power generation is due to the
more dispatches from these plants in 2012 as

Efficient energy use (GRI EN5; EN7; EU7)

In Eletrobras Chesf, among the actions
implemented to produce indirect energy savings, we
highlight the retrofitting1 of the HVAC systems of
the substations, which contributed to the reduction
of energy consumed by the company, generating
savings.

Modernization of equipment, machinery, or systems. It is a modern and effective procedure, which is more cost-effective than new purchases.

- 160 -

Our Responsibility to the Environment

In 2012, aiming to reduce greenhouse gas
emissions, Eletrobras Chesf maintained the
measures concerning the use of cleaner fuels,
which enabled the consumption of gasoline to drop
by 54.89%. The company is also a member of the
National Program for the Rationalization of the Use
of the Byproducts of Oil and Natural Gas (Conpet),
whose actions in 2012 provided the foundations
for the Program of Incentive to Technological
Innovation and to the Consolidation of the
Production Chain of Motor Vehicles (Inovar-AUTO),
which will foster higher consumption levels in the
coming years.

We can also highlight the actions aimed at the use
of clean energy, such as the actions conducted
by Eletrobras Amazonas Energia, which chose to
use natural gas in its energy matrix. Currently, the
Mauá 3 Power Plant is being implemented, and
will replace part of its diesel-powered machinery
in the capital city. In addition, the Company has

been implementing mini-photovoltaic power plants
fueled by solar energy will be implemented.

Solid Waste

Through IGS, we have been improving the
monitoring, and control of waste, especially in
power generation processes and in activities that
support power plant operation and maintenance.

Waste disposal is prepared according to the rules
established by the Brazilian Association of Technical
Standards (ABNT) and by the National Environment
Council (Conama) and according to the legal
requirements governing the disposal of solid
industrial waste. This issue is constantly discussed
by the Eletrobras companies, and its variables are
permanently investigated and reassessed by the
representatives of the companies.

The table below presents the waste generated
by the Eletrobras companies and their disposal
methods: (GRI EN22)

disposal (in tons)

MUNICIPAL WASTE
ColleCtion

e
v
i
t
a
r
t
s
i
n
m
d
a

s
e
i
t
i
v
i
t
c
a

c
i
r
t
c
e
l
e
o
r
d
y
h

n
o
i
t
a
r
e
n
e
G

r
e
w
o
P

c
i
r
t
c
e
l
e
o
m
r
e
h
t

n
o
i
t
a
r
e
n
e
G

r
e
w
o
P

n
o
i
s
s
i

m
s
n
a
r
t

1,119.17

25.54

965.94

15.36

INDUSTRIAL LANDFILL

2,221.29

54.00

504.93

1,287.09

n
o
i
t
u
b
i
r
t
s
i
d

l
a
t
o
t
d
n
a
r
G

2,126.01

4,067.31

CoMPostinG

1,823.52

48.08

16.00

2.01

121,797.00

123,686.61

inCineration

6.57

0.01

0.02

111.85

loCal storaGe

2,431.00

111.35

778,506.83

3,728.48

Co-ProCessinG

3.67

91.46

260.13

136.44

reCYClinG

599.96

269.09

929.76

171.40

118.45

784,777.66

491.70

1,970.21

477,036.45

REUSE

total

25.80

500.36

476,468.19

42.10

8,230.98

1,099.88

1,257,651.80

5,494.73

121,797.00

1,394,274.39

- 161 -

Our Responsibility to the Environment

Of the 1.258 million tons of waste from
thermoelectric generation, 1.254 million tons are
ashes of national coal burned in the Eletrobras

CGTEE power plants, of which 38% (476,468 t) are
used as raw material in the production of Portland
Pozzolana cement.

Waste Types (in tons)

e
v
i
t
a
r
t
s
i
n
m
d
a

s
e
i
t
i
v
i
t
c
a

c
i
r
t
c
e
l
e
o
r
d
y
h

n
o
i
t
a
r
e
n
e
G

r
e
w
o
P

c
i
r
t
c
e
l
e
o
m
r
e
h
t

n
o
i
t
a
r
e
n
e
G

r
e
w
o
P

n
o
i
s
s
i

m
s
n
a
r
t

l
a
t
o
t
d
n
a
r
G

Class I Hazardous Waste*

129.33

1,831.85

8,699.65

108.00

10,768.83

Class IIA Non-hazardous Waste

4,863.38

142.78

1,310,945.01

1,283.15

1,317,234.32

Class IIB Non-hazardous Waste

Medical Waste

total

968.20

112.58

555.49

53.64

1,063.14

2,640.46

112.58

6,073.49

2,530.11

1,319,698.30

2,454.29

1,330,756.19

*This waste was classified according to NBR 10004/04.

Most of the medical waste (112.2 tons) is generated
by Hospital Nair Alves de Souza, located in the city

of Paulo Afonso (PE), where Eletrobras Chesf’s Paulo
Afonso Hydroelectric Complex is located.

Cases

Developing the 5 Rs (Rethink, Refuse, Reduce, Reuse, and Recycle)
In 2012, Itaipu Binacional completed the environmentally friendly disposal of approximately
60 tons of electronic waste (computers, two-way radios, fax machines, scanners, televisions,
printers, telephones, etc.). It was the first time that the company disposed of this type of waste;
therefore, it analyzed the best market practices and ensured that the contractor guaranteed that
the disposal would not impact the environment in any way and that the processes complied with
the laws, technical rules, and resolutions in effect.

Since 2008, Eletrobras Furnas has been implementing the Collaborative Selective Waste
Collection Program in all its units, including power plants, substations, and offices. This work is
executed by the Selective Collection Commission, which was restructured in 2012. Currently,
26 cooperatives benefit from this project, with a total of 2,800 waste pickers. In 2012, these
cooperatives received over 216 tons of recyclable materials, such as paper, plastic, metal,
and glass, which were sorted at the company, generating over R$ 272,000 to the families
of approximately 500 waste pickers in seven states and in the Federal District. Since the
implementation of the program for the selective collection of recyclable materials in Eletrobras
FURNAS (which is in its fifth year), over 850 tons of material have been recycled, attesting to the
notable success of this social responsibility program in the company.

In addition to generating income to the families of the waste pickers registered in Eletrobras
FURNAS’s program, it also originated sustainability gains for the mitigation of the environmental
impact due to the significant reduction in the amount of material discarded as traditional waste

- 162 -

Our Responsibility to the Environment

by the various locations that produced it and by the companies in charge of its disposal.

Eletrobras Cepel maintained the activities of the EcoCepel Project. Established in 2010, it
encourages employees and contractors to take part in the selective collection process, which
receives hazardous materials from their homes, namely: batteries, lamps, and used cooking
oil. After this stage, the waste is disposed of in an environmentally friendly manner. In Cepel’s
restaurants, plastic cups were replaced with clear polycarbonate cups, creating an annual
reduction estimated at 312,000 units, which represents 456 kg of non-generated plastic waste.

In the holding, the Selective Collection Commission is responsible for developing actions
involving this issue, in order to raise the awareness of employees on waste segregation and in
an educational manner, demonstrate the environmental and social benefits of this attitude. The
company sorts the waste generated (white paper, cardboard, PET bottles, among others), which is
then collected by a cooperative. Hazardous waste is produced in the health area (first-aid center),
and it is stored and collected in compliance with the rules established by Anvisa.

The Selective Collection initiatives of the Eletrobras companies were initiated in response
to Decree No. 5940/06, which provides for the segregation of recyclable waste discarded by
agencies and entities of the direct and indirect public federal administration.

Waste Transportation

Hazardous waste is transported by specialized
companies, which must provide proof of compliance
with all legal requirements involving this type of
activity. In 2012, the Eletrobras companies did
not ship any hazardous waste internationally. (GRI
EN24)

total weight of hazardous waste (in tons)

exported by the organization

imported by the organization

shipped to the organization

shipped from the organization

treated waste

462.25

1333.7

162.3

Note: Includes the companies Eletrobras CGTEE, Eletrobras Chesf,

Eletrobras Eletronorte, and Eletrobras Furnas.

Eletrobras CGTEE, for example, has a Temporary
Solid Industrial Waste Storage Center and waste

spills
The risk management process enables the
identification of threats by defining which are
directly related to the strategies of the company.
This facilitates the reduction of likelihood and/
or environmental impacts, given that we execute

is controlled in compliance with the guidelines
established by the Solid Industrial Waste Control
and Management System (Sigecors) of the
environmental agency of the state of Rio Grande do
Sul, called Fepam.

Nuclear waste

In 2012, the Almirante Álvaro Alberto Nuclear
Center produced, at the Angra 1 and Angra 2 power
plants, a total of 42.78 m3 of nuclear waste, a drop
of 41% compared with 2011 (73.24 m3), below the
annual target of 75.1 m3. After its use, the nuclear
fuel (spent fuel) is transferred to the pools located
in the reactor buildings; they are not sent for any
type of processing or reprocessing.

All radioactive waste generated in the nuclear
power plants is safely stored and isolated from
the public and the environment, and its safety,
radiologic protection, traceability, and volume
reduction are the basis of this work.

procedures with the utmost care to avoid leakages
and spills. No effort was spared to reduce the
frequency and the severity of incidents, and our
processes are enhanced continuously.

- 163 -

Our Responsibility to the Environment

In 2012, we registered spills in only three companies,
and reduced the number of spills by nearly 50%
from 2011 to 2012.

The table below presents the level of spills and the
actions taken. (GRI EN23)

COMPANY

)
3
m

(
e
m
u
l
o
V

t
n
u
o
m
A

Location

Material

Impacts

Actions taken

Segment

eletrobras
aMaZonas
enerGia

0,04

transformer

oil

transformer
- rua são João
- Compensa
ii (pole
2d39/26)

0,35 UTE São José,
UTE Electron

Fuel oil

eletrobras
CGtee

Candiota

Fuel oil
type 1a

eletrobras
FURNAS

0,25

se Foz do
iguaçu (drP.o)

transformer
oil

a relatively small
volume of transformer
oil leaked from the
transformer, thus,
no major damage
was caused to the
soil, water resources,
or groundwater,
considering that the
area in question is
impervious and paved;
the oil was transported
and dispoded in the
sanitary sewage system
of the surrounding area

The overflowing oil
polluted the surface
of the water in the
surroundings of the
UTE.

there were no direct
impacts on the
environment, because
the spill did not reach
the external area of the
industrial plant.
indirect impacts due to
changes to the quality
of the wastewater
discharged and by the
disposal of the waste
generated.

soil Contamination

distribution

thermoelectric
Power
Generation

transmission

the oil residue that
remained in the
transformer was taken
to the yard of the
analysis laboratory of
the utility company,
for regeneration
purposes, so that it
can be used in other
transformers; thus, it
was not discharged to
the environment;

the fuel oil was
contained in the area
where the oil-spill
containment boom was
located; a specialized
company cleaned
the area, and the oil
was collected and
properly disposed of.
absorbent materials
and peat were used
for the removal of the
supernatant oil from
the surface of the water.

1-elimination of spill;
2-Containment of oil in
separation tanks and
wastewater treatment
system;
3-Collection through
proper equipment, for
disposal in 200-liter
barrels;
4-disposal of waste
through co-processing
process.

the contaminated
crushed stone was
removed and placed in
a containment basin;
the contaminated
soil was removed
and stored in barrels,
which were sent to an
industrial landfill; the
soil was also corrected
with oil Gator.

- 164 -

Our Responsibility to the Environment

Case

Emergency Response Plan
In 2012, Eletrobras Eletronuclear started preparing an Emergency Response Plan for
emergencies related to chemical spills or leakages. A 40-hour training course was also offered
to train teams to respond to emergencies involving chemicals, in addition to another training
course conducted by the chemical emergency response group of the Fire Department of the
state of Rio de Janeiro. The quality of the analyses is controlled through comparison programs
maintained by the International Atomic Energy Agency, by the US Environmental Protection
Agency, and by the Institute for Radiation Protection and Dosimetry Institute of the National
Nuclear Energy Commission (CNEN).

Water Resources

Since water is a public good and a natural
resource that is critical for power generation,
Eletrobras prepared, in 2010, a Water Resource
Policy which aims to contribute to the sustainable
use of water resources in the development of
its activities (learn more about the guidelines

of the policy at www.eletrobras.com/elb/main.
asp?Team=%7B9BC13D8E-9408-4391-BED4-
C20FCDACB376%7D). The companies are
responsible for implementing actions that seek
to reduce water consumption and wastewater
generation.

river Basin Committee
The Eletrobras companies, as established in the
corporate Water Resource Policy and through the
Drainage Basin Committees, are members of groups
that form the foundation of the participatory and
decentralized water resource management in
Brazil. In these groups, the government (federal,
state, and municipal), water users (industries,
mining companies, and others), and civil society
discuss, negotiate, and make decisions concerning
local water management, using technical tools for
the management, conflict negotiation, and the
promotion of multiple uses for water.

Eletrobras Furnas, for example, qualified as a
full member of the River Basin Committee of Rio
Grande at the federal level during the election
of the members of the Plenary Assembly, with
mandates from 2012 to 2016. At the state level,
for Minas Gerais, Furnas is a member of the Plenary

Biodiversity

Assembly of the River Basin Committee for the area
surrounding the Furnas Reservoir and of the River
Basin Committee for the Tributaries of the Mid-
Region of Rio Grande, whose mandate ends in 2013.

Eletrobras Eletronuclear is part of the Drainage
Basin Committee for the Ilha Grande Bay as user
and of the Collegiate Board, and was involved in
the formation of the pro-committee, in which it is a
member of the electoral commission. The company
is also an alternate at the State Water Resource
Council of Rio de Janeiro (Cerhi-RJ). Eletrobras Chesf
is part of the São Francisco River Basin Committee
and contributes to the hydro-environmental
revitalization of the Basin through several programs
developed by its environmental area. As a user of
the São Francisco River Eletrobras Chesf contributes
to meeting the various needs of the population and
fosters regional development.

Aware of the environmental impacts arising from its
activities, Eletrobras sees biodiversity as one of the

critical issues in its operational strategy.

Aiming at increased integration between

- 165 -

Our Responsibility to the Environment

biodiversity issues and its processes, the company
prepared, in 2012, its Biodiversity Guidelines to
enhance Eletrobras’s Environmental Policy.

Also in 2012, the IGS System expanded its set of
indicators and variables to improve the management
of its companies in relation to biodiversity.

impact Management (en12, en14, en15, en26)

Environmental issues are directly related to the
nature of our businesses; thus, the minimization
of the impacts stemming from our operations is
a strategic corporate guideline. Such issues are
contemplated from the planning of developments
to their operation, and they may cause projects
to be reviewed for changes, such as dimension or
structure.

The Environmental Impact Assessments are
conducted to characterize the areas planned for the
projects, to identify possible impacts arising from
the installation and operation of the developments,
and to propose mitigation and compensation
actions. The bodies of water and the vegetation
present where the developments are located are
monitored to check their environmental quality, as
is the recovery of the affected areas.

During the studies, lists containing the endangered
species in the state and in the country are also

used, such as the Red Book of Brazilian Endangered
Species and the National List of Brazilian
Endangered Fauna, published by the Ministry of
the Environment; the international list provided by
the International Union for Conservation of Nature
(IUCN); and the Convention on International Trade
in Endangered Species of Wild Fauna (CITES). The
endangered species identified are handled by
specific programs.

The most relevant impacts that may affect
biodiversity during the implementation and
operation of the developments are listed in the
chart below. Mitigation, control, or compensation
measures are proposed for each impact and
are developed to ensure the use of the best
environmental control and monitoring techniques.

Potential impacts on biodiversity, per activity and
type of venture, and examples of actions/programs
developed by the Eletrobras companies.

Potential Impacts

Activity

Type of Development

Examples of Actions/Programs

Changes in water
quality

loss of groundcover

Generation

hydroelectric power plants

Generation
transmission

hydroelectric power plants
Wind farms
transmission and distribution lines

Water quality monitoring
programs

reforestation programs

Changes in
ecosystems/habitats

Generation
transmission

interference in
fauna and flora

Generation
transmission

hydroelectric power plants
thermoelectric power plants
transmission lines

hydroelectric power plants
thermoelectric power plants
Wind farms
transmission lines

support for the creation or
maintenance of Conservation
Units

Reforestation and Wildlife rescue
and monitoring programs

interference in the
migration routes of
aquatic wildlife

interference in
migration routes
and collisions with
birds

Generation

hydroelectric power plants

Fish ladders

Generation
transmission
distribution

Wind farms
transmission and distribution lines

installation of signals to avoid
collisions

- 166 -

Our Responsibility to the Environment

Biodiversity protection strategies
The Eletrobras companies maintain environmental
control, monitoring, and recovery programs aiming

to mitigate the impacts arising from its operation
and to protect ecosystems. (GRI EN13, EN14)

Cases

Preservation of species and ecosystem
Itaipu Binacional manages the program Biodiversidade - Nosso Patrimônio (Biodiversity - Our
Heritage) which involves seven projects for the preservation, conservation, and recovery of
regional flora and wildlife, all valuing biodiversity. Wildlife shelters, Canal da Piracema (fish
ladder), and biodiversity corridors are some of the successful projects implemented under
the program, which was also responsible for planting 23 million trees in their natural habitats
and for maintaining over 5,000 ha of riparian forests in micro-bays. Itaipu Binacional has also
implemented a biodiversity corridor (called Santa Maria Corridor) that, through a reforested strip
of land, connects the Iguaçu National Park to the Buffer Zone of the Reservoir.

In Itaipu’s Wildlife Breeding Site, located in the Bela Vista Biological Shelter, wild animals are
bred in captivity and then released in the buffer zone of the lake and in the wildlife shelters on
the Brazilian side of the reservoir. The breeding site has already bred approximately 800 animals
of 42 different species, with a survival rate in excess of 70%. One noteworthy example is the
captive breeding of small wildcats. Currently, breeding activities concentrate on species that are
endangered in Brazil and on those that are rare in the region.

Eletrobras Chesf maintains an aquaculture station to restore rivers and reservoirs with fish
species that are native to the areas where its developments are installed. The company has
implemented actions in the São Francisco River, aiming to restore the natural fish populations in
this river. A total of 553,111 fry of native species have been released.

In 2012, Eletrobras Amazonas Energia was responsible for the rehabilitation and release of
60 birds and 61 mammals of different species. Through the Uatumã Chelonian Program,
20,218 hatchlings were born in the Uatumã Sustainable Development Reserve, the largest
conservation unit in this category in Brazil.

seedlings and seeds

The programs for the production, planting,
and donation of seeds and seedlings aim to
contribute to the maintenance of biodiversity and
forest genetic resources, and to the recovery of
degraded areas found where the developments are
implemented.

In 2012, the regional transmission company
located in Tocantins voluntarily planted 1,000
seeds, produced by Eletronorte’s Forest Germplasm
Program, to generate seedlings that were then

planted at the Miracema and Colinas Substations.

For the recovery of riparian forests and other
degraded areas, Eletrobras Chesf maintains a forest
nursery to produce and distribute seedlings that are
native to the regions where its developments are
implemented. A total of 408.72 ha were recovered
in the areas of the Boa Esperança, Sobradinho,
Itaparica, Paulo Afonso Complex, and Xingó power
plants.

Eletrobras Amazona Energias Program for the

- 167 -

Our Responsibility to the Environment

Recovery of Degraded Areas, in Balbina, involves
the following activities: seed collection, seedling
preparation and planting, and reforestation area
maintenance. In 2012, a total of 7,000 seedlings of
native species were planted, and the areas where
they were planted were maintained. In addition, the
company is responsible for the recovery of 18 ha of
degraded areas in the Uatumã Biological Reserve.

Itaipu Binacional’s forest nursery currently produces
500,000 seedlings annually, including forest and
fruit trees, 80% of which are native species. From

the seedlings produced, 70% are used in programs
developed by the company, such as settlements,
gardens, reforestation, afforestation, and
environmental education. The remaining seedlings
are donated to municipalities and educational
projects, with priority given to the area of influence
of the power plant. Approximately 250,000
seedlings are donated annually.

In 2012, the Eletrobras companies were responsible
for the production of 979,487 seedlings. In the
same year, an additional 138,600 were planted
voluntarily and 107,639 seedlings were donated.

Permanent Preservation areas (aPP2) and legal reserve

The management of the use and occupation of the
margins of reservoirs of hydroelectric power plants
is extremely relevant to the Eletrobras companies,
given that the total perimeter of the margins of the
reservoir corresponds to over 37,000 km (which
exceeds the extension of the coast line of South
America) with a total reservoir area of 19,500 Km².

Aiming to reduce the impact on biodiversity,
Eletrobras Chesf avoids the implementation of
towers in its transmission systems located in APPs
and raises these towers to prevent impacts. In
addition, erosive processes in a total of 26 ha were
recovered in the APPs, in the Paulo Afonso Complex,
and the Boa Esperança power plants. Moreover,
Eletrobras Chesf maintains 26,012 ha of Legal
Reserve in its irrigated perimeters, connected to the
Itaparica Power Plant.

Eletrobras Eletrosul executes actions for
the restoration of APPs and degraded areas
located within its developments. Generally, for
the restoration of APPs, artificial perches are
implemented in the areas where the replenishment,

transposition, and dissemination of organic soil
(seedling bank) is made. Branches are placed in the
area, and natural regeneration areas are isolated.

The Green River Project aims to recover and
preserve 100% of the riparian forests located in the
main rivers of the state of Mato Grosso by 2020.
The project is executed by Instituto Ação Verde, and
was supported by Eletrobras from 2010 to 2012 for
the recovery of a stretch of 200 km of APP along
the Teles Pires River. The project also intends to
execute environmental education actions involving
the local population for the preservation of the
APPs located along the river. These actions involve
the replanting of seedlings native to the area in the
APPs. In 2012, two representatives of Eletrobras
took part in the launching of two actions of this
project: the Renascer program, in the Zumbi dos
Palmares Settlement, which aims to foster the use
of nut trees, and the program Adote uma Nascente
(Adopt a River Source), which aims to recover 30
river sources located in the urban area of Sinop, in
partnership with municipal schools.

The permanent protection areas are preserved to maintain the environmental functions of preserving water resources, landscape, geologic stability, biodiversity, wildlife and
fauna genetic flow, soil protection, and of ensuring the well being of human populations

- 168 -

Our Responsibility to the Environment

Protected areas (Gri en13)

Support to conservation units has proven to be an
efficient measure toward biodiversity protection.
Parks, biological reserves, and ecological stations,
among others, house various species, creating a
protection network in the several biomes present in
the country.

Until 2012, there were 163 protected areas, such
as conservation units and indigenous territories,
supported by Eletrobras companies, totaling
19,010,998 ha. They are located within the main
Brazilian biomes: Cerrado, Atlantic Forest, the
Amazon, Pampas, and Coastal Biome. They include
the following: 31 national parks, 24 state parks,
19 biological reserves, 16 ecological stations,
15 environmental protection areas, 6 ecological
parks, 4 national parks, 4 sustainable development

reserves, 3 wildlife shelters, 3 extractive reserves,
2 municipal parks, 1 private reserve of natural
heritage, 2 ecologically relevant areas, 1 woodland,
1 ecological corridor, 1 national forest, 1 forest
park, 1 ecological reserve, 1 special protection
area, and 2 wildlife preservation zones. In addition,
24 Indigenous territories and 1 archeological
site received support. Of the 163 protected areas
supported, 61.30% are managed by federal
agencies, 23.22% by state, municipal, and private
agencies, and 15.48% by Eletrobras companies.

In 2012, Eletrobras companies invested a total of
R$ 21.6 million to support these protected areas.
A total of R$ 5.4 million was invested in voluntary
actions, of which 86% was destined for areas that
are managed by Eletrobras companies.

- 169 -

Biomes

Amazon

Caatinga

Cerrado

Coastal

Southern Fields

Caatinga-Amazon Ecotone

Cerrado-Amazon Ecotone

Cerrado-Caatinga Ecotone

Atlantic Forest

Pantanal

LEGEND

Environmental Protection Area

National Park

Area of Relevant Ecological Interest

Natural Park

Forest

Ecological Corridor

Ecological Station

National Forest

Ecological Park

State Park

Our Responsibility to the Environment

Forest Park

Municipal Park

Biological Refuge

Biological Reserv

Sustainable Development Reserve

Ecological Reserv

Extractive Reserve

Private Natural Heritage Reserve

Archaecological Site

Indigenous Land

DESCRIPTION

QUANTITY

AREA (ha)

Conservation units with the support of Eletrobras

139

Indigenous land with the support of Eletrobras

TOTAL

163

15.017.229

3.993.759

19.010.988

Biomes

Amazon

Caatinga

Biomes

Southern Fields

Amazon

Cerrado

Caatinga

Southern Fields

Coastal

Cerrado

Caatinga-Amazon Ecotone

Coastal

Cerrado-Amazon Ecotone

Caatinga-Amazon Ecotone

Cerrado-Caatinga Ecotone

Cerrado-Amazon Ecotone

Atlantic Forest

Cerrado-Caatinga Ecotone

Atlantic Forest

Pantanal

LEGEND
LEGEND

Environmental Protection Area
Environmental Protection Area

National Park

Area of Relevant Ecological Interest

Natural Park

Forest

Ecological Corridor

Ecological Corridor
Ecological Station

Ecological Station
National Forest

National Forest

Ecological Park

State Park

Ecological Park
Forest Park

State Park

Biological Refuge

Biological Reserv

Sustainable Development Reserve

Ecological Reserv

Extractive Reserve

Ecological Reserv

Private Natural Heritage Reserve

Extractive Reserve

Archaecological Site

Private Natural Heritage Reserve

Municipal Park

Figure 1. Location of the protected areas supported by Eletrobras.

Forest Park
DESCRIPTION
Municipal Park
Conservation units with the support of Eletrobras

Indigenous Land

Archaecological Site
QUANTITY
AREA (ha)
Indigenous Land
139

15.017.229

Indigenous land with the support of Eletrobras

DESCRIPTION

TOTAL

163

QUANTITY

AREA (ha)

3.993.759

19.010.988

Conservation units with the support of Eletrobras

139

Indigenous land with the support of Eletrobras

TOTAL

163

15.017.229

3.993.759

19.010.988

- 170 -

Cases

Our Responsibility to the Environment

Samuel Ecological Station
Samuel Ecological Station of Eletrobras Eletronorte is located in the Amazon Biome and has
72,000 ha. In General, the forest of the Ecological Station is considered quite diverse, with around
200 tree species per hectare. The station was created to protect a representative area of the
natural ecosystems of the Jamari River basin and preserve biodiversity in the area.

Bela Vista Biological Sanctuary
The wildlife nursery of Itaipu Binacional and the Zoo Roberto Ribas Lange, maintained by
the company in the Bela Vista Wildlife Sanctuary (RBV), provides an environment suitable
for the reproduction of most species to more than 200 animals. Itaipu Binacional carries out
important research and activities aimed at procreation and to guarantee survival of species.

Climate Change

Eletrobras is aware of the challenges posed
by climate change in the 21st century. To face
these challenges, the company has continuously
sought to improve its planning and management
instruments as a means of considering both the
contribution of its activities to this phenomenon,
and the impacts of climate change on the
company’s operations.

In this context, the climate strategy of the
Eletrobras companies is guided by a series of
actions that find their main guideline in Strategic
Planning. Eletrobras’s Vision for 2020 is to become
the largest global clean energy business system.
To this end, one of its strategic objectives is to
maximize the participation of renewable sources
in its energy matrix, thus keeping the low carbon
intensity of the Eletrobras companies (in 2012:
0,057 tCO2e/MWh).

An environmental management system that adds
new information and improves existing processes
is added to this medium-term business strategy
aiming to diagnose and efficiently manage the
various aspects related to the environment, among
them climate-change related issues.

Eletrobras’s Declaration of Commitment on Climate
Change, published in May 2012, strengthens the
integration of the climate change issue into the
company’s procedures and guidelines. Among
the various commitments made are: the search

for a unified strategy for its companies to adopt
practices that minimize or offset its GHG emissions;
the prioritization of the share of renewable energy
sources in its project portfolio; and the promotion
of studies to identify and understand the risks
and opportunities related to climate change for
Eletrobras companies.

With respect to the latter commitment, Eletrobras is
promoting two studies focusing on: 1) analyzing the
risks, vulnerabilities and possibilities to adapt the
electric power generation system of the Eletrobras
companies to climate change impacts; and 2)
performing sensitivity analysis of the financial
impact of a possible taxation of CO2 emissions
for thermoelectric generation of the Eletrobras
companies (pilot case study).

With regard to greenhouse gas (GHG) emissions,
since 2009 the inventory of greenhouse gas
emissions of the Eletrobras companies has
been prepared annually, in accordance with the
methodology of the IPCC (Intergovernmental Panel
on Climate Change) and of the GHG Protocol, and
whose result is the recording of its emissions by
source, having become a strategic tool for the
companies to manage their emissions.

The inventory of Greenhouse Gas Emissions of
the Eletrobras companies in 2012, assured by
third party certification companies, presented the
following results (GRI EN16; EN17):

- 171 -

ed roraima

ed Piauí

eletrobras amazonas
energia

Our Responsibility to the Environment

Fixed

Mobile

Fugitive

Scope 1

Scope 2

Scope 3

COMPANY

c
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e
l
e
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F
S

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

n
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1
0
2

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r
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g
n
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C

1
1
0
2

)

(

ed acre

n.s.

323

n.s.

247

n.s.

148

n.s.

827

201

n.a.

0.2

n.s.

14,393

n.s.

118,186

115,685

285

388

n.s.

234

n.a.

134,411

116,772

ed alagoas

n.s.

ed rondônia

n.s.

1,745

1,930

n.s.

143

n.s.

9,383

789

n.s.

n.a.

0.5

274

n.a.

n.s.

81,756

36,387

n.s.

219

n.a.

525

n.s. 1,354

85,942

38,323

120

n.a.

1.6

1.9

257

n.s.

52,763

26,706

199,328

203,794

599

673

n.s.

n.a.

262,477

232,149

n.s.

244

195

n.s.

n.a.

0.1

173

n.a.

n.s.

6,511

34,782

10,415

n.s.

n.a.

n.s.

n.a.

17,343

34,977

n.s.

4 1,638

n.s.

1,805

2,048

n.s.

574

n.a.

2.6

266

n.s.

81,973

34,782

n.s.

195

309

n.s.

n.a.

84,820

38,967

3,569,586 2,210,331

n.a.

n.s.

n.a.

1,230

970

n.a.

n.s.

eletrobras Cepel

n.s.

eletrobras CGtee

3,317,889 2,594,110

n.s.

330

343

n.s.

n.a.

6.0

12.9

n.s. 3,247

n.s.

n.s. 243,494 107,759 1,395,270 1,416,757

1,224

634

n.a.

n.s.

n.a.

5,210,824 3,739,712

n.s.

n.a.

1.8

0.7

452

129

n.s.

260

246

468

407

n.s.

n.a.

1,295

832

1.7

1.0

128

n.s.

110

386

525

353 3,634 3,653

3,322,914 2,598,888

eletrobras Chesf

eletrobras eletronorte

eletrobras
eletronuclear

eletrobras eletrosul

eletrobras Furnas

holding

itaipu Binacional

subtotal sources

annual Comparison

total scopes

5,066

8,811

n.a.

4,437

4,513

n.s.

347

537

47,561

38,240

n.a.

n.s.

15.6

16.2

995

230

239,230

71,196

n.s.

2,354

7,510

n.s.

n.a.

300,080

131,059

643,697

651,068

129

n.a.

3,259

7,007

n.s.

14,842

3,585

n.a.

37.9

1.8

885

120

124,385

34,820

n.s.

200,281 1,257,058

2,256

3,234

309

n.s.

n.a.

990,191 1,956,962

n.s.

n.s. 1,707 1,376

1,082

n.s.

305

n.a.

6.8

2.3 1,837

n.s.

704

338 1,861 1,853

7,587

4,720

n.s.

1,687

1,716

n.s.

101

n.s.

2,498

3,677

130

n.a.

3.0

2.3

658

435

185,442

55,421

n.s.

140

223

163

312

n.a.

190,890

61,847

318,681

123,863

4,629

1,287

n.s.

153

204,347

104,046

812

n.a.

677

30.6

34.6 2,331

463

615,689 168,105

n.s.

2,751

1,513

n.s.

n.a.

1,150,036

399,507

n.s.

n.a.

0.9

1.1

389

160

n.s.

2,433

2,615

n.s.

n.a.

2,862

2,821

n.s.

514

546

n.s.

7,170

536

n.a.

4.0

0.9

142

n.s.

979

1,044

1029 1,131

10,494

10,040

7,854,919 5,588,506 1,983 3,146

653

110 30,582 22,642

458

691

157,135

573,718

1,864

1,042

113

79 8,860 5,120 1,164,746 329,541 480,890 240,417 1,923,479 2,993,294 14,511 19,114 4,898 4,055 5,296 3,688

total (tCo2e)

2012

8,169,464

2011

2012

2011

2012

2011

2012

2011

5,772,344

1,654,496

575,079

1,948,185

3,020,151 11,772,144 9,367,574

- 172 -

n.s.

n.a.

n.s.

295

n.s.

Our Responsibility to the Environment

Fixed

Mobile

Fugitive

COMPANY

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Scope 1

Scope 2

Scope 3

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

2
1
0
2

1
1
0
2

n.s.

323

n.s.

247

n.s.

148

n.s.

827

201

n.a.

n.s.

1,745

1,930

n.s.

n.a.

n.s.

143

n.s.

9,383

789

n.s.

120

n.a.

n.s.

244

195

n.s.

n.a.

n.s.

4 1,638

n.s.

1,805

2,048

n.s.

574

n.a.

3,569,586 2,210,331

n.a.

n.s.

n.a.

1,230

970

n.a.

n.s.

n.a.

eletrobras CGtee

3,317,889 2,594,110

n.s.

330

343

n.s.

n.a.

n.s.

n.a.

n.s.

295

0.2

n.s.

14,393

n.s.

118,186

115,685

285

388

n.s.

234

n.a.

134,411

116,772

0.5

274

n.a.

n.s.

81,756

36,387

n.s.

219

n.a.

525

n.s. 1,354

85,942

38,323

1.6

1.9

257

n.s.

52,763

26,706

199,328

203,794

599

673

n.s.

n.a.

262,477

232,149

0.1

173

n.a.

n.s.

6,511

34,782

10,415

n.s.

n.a.

n.s.

n.a.

17,343

34,977

2.6

266

n.s.

81,973

34,782

n.s.

195

309

n.s.

n.a.

84,820

38,967

6.0

12.9

n.s. 3,247

n.s.

n.s. 243,494 107,759 1,395,270 1,416,757

1,224

634

n.a.

n.s.

n.a.

5,210,824 3,739,712

1.8

0.7

452

129

n.s.

260

246

468

407

n.s.

n.a.

1,295

832

1.7

1.0

128

n.s.

110

386

525

353 3,634 3,653

3,322,914 2,598,888

5,066

8,811

n.a.

4,437

4,513

n.s.

347

537

47,561

38,240

n.a.

n.s.

15.6

16.2

995

230

239,230

71,196

n.s.

2,354

7,510

n.s.

n.a.

300,080

131,059

643,697

651,068

129

n.a.

3,259

7,007

n.s.

14,842

3,585

n.a.

37.9

1.8

885

120

124,385

34,820

n.s.

200,281 1,257,058

2,256

3,234

309

n.s.

n.a.

990,191 1,956,962

n.s.

n.s. 1,707 1,376

1,082

n.s.

305

n.a.

eletrobras eletrosul

n.s.

1,687

1,716

n.s.

101

n.s.

2,498

3,677

130

n.a.

6.8

2.3 1,837

n.s.

704

338 1,861 1,853

7,587

4,720

3.0

2.3

658

435

185,442

55,421

n.s.

140

223

163

312

n.a.

190,890

61,847

318,681

123,863

4,629

1,287

n.s.

153

204,347

104,046

812

n.a.

677

30.6

34.6 2,331

463

615,689 168,105

n.s.

2,751

1,513

n.s.

n.a.

1,150,036

399,507

n.s.

n.a.

n.s.

514

546

n.s.

7,170

536

n.a.

n.s.

0.9

1.1

389

160

n.s.

2,433

2,615

n.s.

n.a.

2,862

2,821

4.0

0.9

142

n.s.

979

1,044

1029 1,131

10,494

10,040

7,854,919 5,588,506 1,983 3,146

653

110 30,582 22,642

458

691

157,135

573,718

1,864

1,042

113

79 8,860 5,120 1,164,746 329,541 480,890 240,417 1,923,479 2,993,294 14,511 19,114 4,898 4,055 5,296 3,688

total (tCo2e)

2012

8,169,464

2011

2012

2011

2012

2011

2012

2011

5,772,344

1,654,496

575,079

1,948,185

3,020,151 11,772,144 9,367,574

ed acre

ed alagoas

ed rondônia

ed roraima

ed Piauí

eletrobras amazonas

energia

eletrobras Cepel

eletrobras Chesf

eletrobras eletronorte

eletrobras

eletronuclear

eletrobras Furnas

holding

itaipu Binacional

subtotal sources

annual Comparison

total scopes

- 173 -

Our Responsibility to the Environment

The largest dispatch of the thermoelectric
power plants in the country at the end of 2012
led the Eletrobras companies (company-owned
thermoelectric plants - scope 1) to increase their
direct emissions by 29%, compared to 2011.The
largest dispatch of the thermoelectric plants also
greatly influenced the emission factor of the SIN,

which, in turn, affected the calculation of GHG
emissions relating to the portions “electricity
consumption”, “loss in distribution” and “loss
in transmission” (scope 2). This increase in GHG
emissions in 2012 contributed to an increase in
Emission Intensity of the Eletrobras companies by
21% compared to 2011.

Comparison of the Emission, by scope, in the production chain of the
Eletrobras Companies

Scope 3

3,020,151

1,948,185

575,079

Scope 2

1,654,496

Scope 1

5,772,344

8,169,464

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2011

2012

Scope 1: Direct emissions of the company or that have control, for example, burning of fossil fuels and of production processes.
Scope 2: Consumption of purchased energy (electrical), losses in distribution and transmission.
Scope 3: Emissions that occur as a function of the activities of the organization, but that has its origin in sources not owned or controlled by the same. Some examples are: transport
of goods in vehicles that do not belong to the company, use of vehicles from third parties, in addition to the transport of employees or business trips.

The largest portion of greenhouse gas emissions,
in scope 1, comes from stationary sources of large,
medium and small thermoelectric generation
(7,854,919 tCO2e), representing 67% of the total
emissions. Still in Scope 1, direct emissions related
to SF6 released by electric equipment reached

3.5% of the total for this scope and are subject to
programs for their reduction. In relation to Scope
2, emissions related to loss in transmission and
distribution represent 10% and 4% respectively of
the total inventory of emissions in this scope.

Eletrobras Companies’ Emissions

10%

28%

44%

Eletrobras Amazonas Energia

Eletrobras CGTEE

Eletrobras Chesf

Eletrobras Eletronorte

Eletrobras Furnas

Others

- 174 -

Our Responsibility to the Environment

Below, we present some reductions in Greenhouse Gas emissions:

reductions in GhG emissions by source (tCo2e)

other stationary sources

Mobile

Fugitive

electric energy consumption

74.16

4,313.62

8,460.75

148.58

Note: Data include companies: Eletrobras Distribuição Alagoas, holding and Itaipu Binacional.

sox and nox emissions (Gri en20)

SOx (sulfur oxides) and NOx (nitrogen oxides)
emissions arising out of the activities of the
Eletrobras companies are mainly related to electric

energy generation processes by thermoelectric
power plants and fuel consumption by mobile
sources, as shown in the following tables:

COMPANY

NOx Emissions

2012

2011

Variation
2012x2011
(%)

SOx Emissions

2012

2011

Variation
2012x2011
(%)

ed acre

n.a.

0.90

n.a.

0.42

eletrobras amazonas energia

8,892.00

6,103.22

31%

20,396.00

13,526.50

34%

eletrobras CGtee

eletrobras Chesf

10,767.00

9,885.69

28,371.00

62,247.82

-119%

9.00

16.39

eletrobras eletronorte

1,635.00

1,592.11

eletrobras Furnas

522.00

224.81

total

21,824.00

17,823.13

-82%

57%

18%

3.00

4,178.00

88.00

0.82

666.13

39.25

53,036.00

76,480.93

73%

84%

55%

-44%

SOx emissions are mostly generated by stationary
sources such as coal-fired power plants. NOx
emissions, in addition to the coal-fired plants, also
originate from mobile sources such as vehicles.

Below, we present NOX emissions by the Eletrobras
companies:

Eletrobras Companies’ NOx Emissions

12000

10000

8000

6000

4000

2000

0
0
0

0
9
0

ED Acre

0
0
7
6
7
0
1

0
0
2
9
8
8

9
6
5
8
8
9

2
2
3
0
1
6

0
0
5
3
6
1

9
3
6
1

0
0
9

1
1
2
9
5
1

2012

2011

0
0
2
2
5

1
8
4
2
2

Eletrobras
Amazonas
Energia

Eletrobras
CGTEE

Eletrobras Chesf

Eletrobras
Eletronorte

Eletrobras
Furnas

- 175 -

Our Responsibility to the Environment

Below, we present SOX emissions by the Eletrobras companies:

Eletrobras Companies’ SOx Emissions

1
7
3
8
2

6
9
3
0
2

2012

2011

8
7
1
4

0
0
0

ED Acre

0
0
0

Eletrobras
Amazonas
Energia

Eletrobras
CGTEE

Eletrobras
Chesf

Eletrobras
Eletronorte

Eletrobras
Furnas

Case

Alternative solutions
Eletrobras CGTEE signed, in March 2012, an agreement with the Federal University of Rio
Grande (FURG), in order to install and operate a unit for the biofixation of carbon dioxide gas by
microalgae. Also, Eletrobras Chesf seeks to integrate the operation actions with the transport
tasks, allowing for gains in efficiency in the cost of transportation. Another mechanism
used to reduce emissions arising out of travel is related to technological alternatives for
communication. Videoconferences have proven to be an effective tool, especially when the
number of employees traveling and the time spent in transportation are impractical, both from
an operational and environmental standpoint (GRI EN18).

environmental investments (Gri en30)
In 2012, our main investments and spending on
environmental protection totaled R$ 197 million. The
amounts invested increased 41% compared to 2011.

Of this total, close to R$55 million were invested in
environmental programs of projects, as in the case
of Eletrobras Furnas and Eletrobras Eletronorte.
Other companies such as Itaipu Binacional and
Eletrobras Eletrosul invested approximately R$
12 million in the recovery of degraded areas and
protection of areas.

Eletrobras CGTEE contributed with close to R$ 27
million in the treatment of atmospheric emissions.

Eletrobras Eletronorte earmarked approximately R$
15 million in various actions such as environmental
programs, environmental audits, environmental
surveillance and implementation of ISO 14001 and
in the recovery of degraded areas in some parts of
the transmission lines. Itaipu Binacional earmarked
approximately R$ 17 million in actions to encourage
the development and diversification of production
in rural properties, in sustainability projects for
Indigenous communities, in programs to support
the regional aquaculture, in the monitoring of the
ichthyofauna, among others.

- 176 -

Our Responsibility to the Environment

legal Compliance

Environmental licensing (GRI EU19)

For the viability of electric generation projects,
in addition to the studies of the planning phase,
an Environmental Impact Study is carried out
in the environmental licensing process (with its
respective Environmental Impact Assessment
- EIS/EIA) or Simplified Environmental Report.
According to the assumptions contained in
CONAMA Resolution No. 00186 and in the Terms
of Reference issued by environmental licensing
agencies, environmental studies detail the aspects
of the physical, biotic, socio-economic and cultural
environment by obtaining primary data from field
surveys. In this step there is a greater detailing of
environmental impacts and the further evaluation
of its magnitude, duration and scope, with the
proposal of measures to eliminate or mitigate
them. Should there be the need for relocation
of population, the most conducive locations for
resettlement are identified. In this phase, one or
more public hearings are held in the region of the
development to formally present the project to
society, discuss potential social and environmental
impacts foreseen and the respective mitigating
and compensatory measures. The EIS/EIA is
reviewed by the appropriate environmental
agency that decides on the granting of Preliminary
Environmental License (LP). It is at this point
that the environmental agency approves and
recommends the environmental programs that
should be detailed in a later phase.

estudos da fase de planejamento

In the Basic Project phase, with the definition of the
entrepreneurs after the public tender, additional
field surveys can be carried out, either by project
requirements, or by formal request from the
environmental agency. In the Basic Environmental
Project (Projeto Básico Ambiental – PBA) the scope of
environmental programs and projects approved in the
EIS is detailed, and some may even be implemented,
depending on the need and term. The institutional
coordination and social negotiations are detailed. If the
population is affected, the negotiation criteria and the
procedures for acquisition/compensation of land and
leasehold improvements are established. Locations
for the urban and rural resettlement are defined. After
analysis of the PBA, the environmental agency decides
on the granting of the Installation License (LI).
In the construction phase, Environmental Management
consolidates with the implementation and monitoring
of programs and projects related to the physical,
biotic and socio-economic environment proposed
in social and environmental studies. It is at this point
that the compensation for land and improvements,
acquisition of areas for resettlement of populations
and the resettlement process occur. At the end of this
phase, the environmental agency issues the Operating
License (LO).
During the operation, programs that were not
completed in the previous phase and those planned
to be completed in a longer period continue to
be executed. Additionally, the other monitoring
programs that were planned are implemented.

Studies in the Planning Phase
The Hydroelectric Inventory is characterized by the design and analysis of several alternatives
to divide drops in the river basin, formed by sets of projects. These alternatives are
compared with each other, in order to select the one that offers the best balance between
deployment costs, energy output and environmental impacts. This analysis is conducted
based on secondary data, supplemented with information from the field and based on basic
cartographic, meteorological, geological and geotechnical, and environmental studies, as
well as on the multiple uses of water. Since the revision of the Inventory Manual in 2007, an
Integrated Environmental Assessment (AAI) of the selected alternative has been included in
the studies, aiming to outline the cumulative and synergistic effects. It is in this phase that the
environmental and social guidelines are established for the continuity of studies for the design
of projects and for future social and environmental studies in the basin.

- 177 -

Our Responsibility to the Environment

Energy efficiency

In 2012, the Eletrobras’s energy efficiency
department was restructured in order to strengthen
and emphasize the corporate side upon developing
the energy efficiency activities common to all the
Eletrobras companies and enable new businesses.

energy efficiency in the Eletrobras companies to
optimize the investment and other corporate gains
in the generation, transmission, distribution and
consumption of electricity, in line with the business
plan of the Eletrobras System.

In the same year, the Integrated Energy Efficiency
Committee of the Eletrobras System (Cieese) was
reactivated aiming at the coordination, discussion
and exchange of information within the areas
managing energy efficiency in the Eletrobras
companies to support process improvement and
the synergy of energy efficiency actions in the
Eletrobras companies. Among the main initiatives
of the Committee, we can highlight the Energy
Efficiency Policy Update of the Eletrobras System,
which aims to promote, guide and prioritize

The development of a standard methodology for
the acquisition of efficient distribution transformers
and the beginning of work for the implementation
of ISO 50001 (Energy Management), are some of
the actions taken by the Eletrobras companies
aiming at Energy Efficiency in the process. (GRI EU7;
EN5).

The following table shows a summary of the energy
efficiency programs and projects characterized
as initiatives to provide products with low power
consumption (GRI EN5; EN6; EU7):

Main activities related to the promotion of energy efficiency, by company

Companies

Initiatives

Activities

Results

eletrobras Furnas

Four energy diagnostics
were carried out in schools
and three diagnostics in
own facilities, in states
where the company has
facilities or projects under
development.

“Animação Cultural” – activity
carried out at schools,
parks and communities
with the theme electric
energy Conservation .
“FURNAS/Procel in Schools”
– lecture for students held
on company premises.
“Energia da Sabedoria” –
lectures for the elderly

“Technical Lectures” –
lecture for professionals
with a bachelor’s degree
or technical training.
“Events” – with internal
and external partnerships,
at trade fairs, exhibitions,
congresses, cultural events and
distribution of informative
booklets on energy
conservation.

“Animação Cultural” – 6,801
participants, of whom 5,345 are
from Minas Gerais and 1,456
from rio de Janeiro.

“FURNAS/Procel in Schools”
– total of 58,495 students and
1,363 teachers participated.
“Energia da Sabedoria”
– 2,136 participants.
“Technical Lectures”
– 427 participants.
“Events” – 35,473 participants.

These studies identified
potential savings of 118.38
MWh/year and a potential for
reduction in demand of 58.83
kW.

- 178 -

Our Responsibility to the Environment

Companies

Initiatives

Activities

Results

eletrobras amazonas
energia

Mini-photovoltaic plants of
the luz para todos program
in the state of amazonas.

Project for 12 mini-
photovoltaic plants with
mini-grids and prepayment
billing system, developed
within the framework of the
luz para todos program. the
mini plants use solar energy
acquired through photovoltaic
modules made up of solar
panels, load controllers with
accumulation system. the
entire mini-grid and mini-
plant system relies on remote
monitoring and prepaid
billing system.

The municipalities benefitted
are: autazes, Barcelos,
Beruri, eirunepé, novo
airão and Maués. there
are approximately 222
consumer units (among
houses, community centers,
schools and churches), with
approximately 1,300 people
benefitted.

the company’s intention is for
other remote communities in
the interior of the state to have
access to this benefit.

agent eletrobras Parintins
and Energy Efficiency at the
Court of Justice of the state
of amazonas.

Energy efficiency in low-
income consumer units
in the city of Manaus and
energy efficiency in low-
income consumers in isolated
electric systems in the state of
amazonas.

Measurement of the gain
in efficiency is in the
implementation phase,
expected to be completed by
June/2013.

1,722 refrigerators were
replaced in the interior of the
state of amazonas.

In the first phase, 1,375
inefficient refrigerators
were replaced with others
with consumption of up to
24 kWh/month, and 14,840
incandescent bulbs were
replaced with 15W compact
fluorescent bulbs in the
municipality of Parintins/aM.
In the second phase, 1,994 40W
tubular fluorescent bulbs were
replaced with 1,320 18 W LED
bulbs, and 674 32W compact
fluorescent bulbs.

- 179 -

Our Responsibility to the Environment

Companies

Initiatives

Activities

Results

eletrobras Cepel

replacement of equipment
of the hvaC system

Progressive replacement of
computer equipment

Efficient Solar House

replacement is part of the
strategy to improve the
efficiency of final energy
use, which accounts for the
largest portion of Cepel’s total
consumption of electricity.

replacements made so far,
with specifications focusing
on energy consumption,
constitute an important
strategy to reduce energy
consumption in Cepel’s
research activities.

estimated energy savings of
1,428 kWh or 5,141 MJ in 2012,
an increase of 14.2% compared
to the previous year.

The Efficient Solar House is a
fully autonomous installation
in terms of energy.

eletrobras eletronorte

educational actions in
energy efficiency

the actions, developed
through partnerships, took
place in municipal public
schools in several cities of
the states of Pará, tocantins,
Maranhão and amapá.

the program continued in 300
schools, and the municipality
of Ferreira Gomes-aP made
a special request to develop
educational projects in its
schools.

since 2005, the programs have
reached 875,453 students, 8,201
teachers and 1,352 schools in
the region where eletrobras
eletronorte operates. savings
achieved in 2012 with the
educational programs totaled
2,272,068 GJ, slightly lower
compared to that of 2011,
which was of 2,880 GJ.

- 180 -

Our Responsibility to the Environment

Cases

Efficient management
Proceeding with the work developed since 2000, Eletrobras Chesf continues to invest in
Projects to Improve Energy Efficiency (PMEEs) and annually accumulates the energy benefits
obtained with its actions. 108 projects were developed as of 2012, 99 of which have already
been implemented, representing more than 605,000 GJ (168,000 MWh) of energy saved over
the 12 years that the PMEEs have been developed. Total investment was of approximately R$ 9
million, equivalent to an average cost of less than R$55.00/MWh. With the new technological
alternatives under consideration, such as the use of Solar Energy, the preparation of action
plans on Energy Management and the intensification of measures to reduce consumption in
pumping systems, even more significant results are expected for the coming years (GRI EN5).

- 181 -

Bromélia
Vriesea saudersii

- 182 -

social audit

(ibase table)

- 183 -

Social Audit (Ibase Table)

holding

Consolidated

(R$ thousand)

I. Human Resources

a. Compensation

Gross Payroll (GP)

- employees

- administrators

ratio between the largest and the lowest compensation:

- employees

- administrators

b. Benefits Granted

Payroll charges

Food

transportation

Private pension plan

health

occupational health and safety

education or stipend for day care

Culture

training and professional development

others

Profit sharing

Total

c. Workforce information

Number of employees at the end of the fiscal period

number of hires

number of terminations

Number of interns at the end of the fiscal period

number of employees with disabilities or special needs at
the end of the fiscal period
Number of outsourced employees at the end of the fiscal
period

number of employees by gender:

- Men

- Women

number of employees by age group:

- Under 18

- From 18 to 35

- From 36 to 60

- over 60

number of employees by level of education:

- illiterate

- elementary and Middle school

- high school

- technical education

- higher education

- Postgraduate degree

- 184 -

2012

213,695

183,517

4,161

16.65

1.42

2012

54,988

16,099

855

28,292

19,312

5,342

2,396

5,249

40,000

172,533

2012

1,182

220

801

773

409

368

718

189

515

423

2011

152,580

113,611

2012

2011

4,716,416

3,619,082

4,653,216

3,560,225

2,857

153,925

22,746

15.35

0.00

2011

58,524

16,966

834

22,719

13,585

5,758

2,317

6,497

2012

2011

1,267,774

1,061,237

327,949

41,353

275,780

437,469

43,365

55,357

2,332

64,498

284,271

20,602

247,163

323,727

37,086

36,586

2,076

67,540

37,800

435,770

419,251

165,000

2,951,648

2,499,539

2011

1,212

214

768

797

415

414

721

200

543

419

2012

28,078

681

948

2,145

636

12,915

22,695

5,383

6,586

19,177

2,315

3,035

5,181

7,097

9,296

3,514

2011

24,884

1,104

987

1,866

507

8,248

20,193

4,691

6,007

17,183

1,693

2,716

4,438

6,569

8,126

2,942

Social Audit (Ibase Table)

Percentage of employees in management position, by
gender:

- Men

- Women

d. labor liabilities and contingencies

Number of labor suits filed against the company

number of labor suits found to have grounds

number of labor suits found to be without grounds

75.00

25.00

2012

456

74.00

26.00

2011

309

2012

6,517

931

518

2011

5,060

714

365

Total amount of indemnifications and fines paid by court order

1,974

7,293

258,006

84,722

II. Company Interaction with the External Environment

2.1. relationship with the community

2012

2011

2012

2011

total investments in:

education

Culture

health and infrastructure

sports and leisure

Food

Job and income generation

resettlement of families

others

Total investments

taxes (excluding payroll charges)

Financial compensation for the use of water resources

1,460

57,110

29,829

2,417

90,816

214,405

924

21,576

39,830

90,212

102,138

32,952

1,353

56,805

32,781

6,576

15,899

152,278

439,714

18,422

56,869

81,404

35,243

3,487

8,614

13,294

217,333

425,941

2,692,128

3,837,342

1,201,519

611,204

Total Relationship with the Community

305,221

482,746

4,333,361

4,665,879

2.2.interaction with suppliers

2012

2011

2012

2011

social responsibility criteria used for the selection of
suppliers

III. Interaction with the Environment

investments and maintenance costs in operational
processes for the improvement of the environment
investment and spending on the preservation and/or
restoration of degraded environments
investments and spending on environmental education to
employees, contractors, self-employed professionals and
company administrators
investments and spending on environmental education
for the community
investments and spending on other environmental
projects
number of environmental, administrative and legal
actions filed against the company
Value of fines and indemnities relating to environmental
matters, administrative provisions and/or legally
established

environmental liabilities and contingencies

Total interaction with the Environment

IV. Other information

net operating income (noi)

Operating Profit (OP)

155,470

135,245

114,372

58,591

1,470

735

4,283

2,522

33,733

30,645

2,000

8,522

153

1,240

319,902

229,138

2,631,551

2,606,807

34,064,477

25,865,267

1,296,376

1,871,631

(7,962,243)

4,493,807

- 185 -

- 186 -

Gri table of
Contents

Fruto do cerrado
Aspidosperma macrocarpon

- 187 -

- 188 -

GRI Table of Contents[GRI 3.12]

Indicator

Description

Page

1.1

1.2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

strategy and analysis
(Message from the
president)

Organizational Profile

statement from the most senior decision maker of the
organization (e.g., Ceo, chair, or equivalent senior position)
about the relevance of sustainability to the organization and its
strategy.

description of key impacts, risks, and opportunities.
the reporting organization should provide two concise
narrative sections on key impacts, risks, and opportunities.

Organizational Profile

name of the organization.

Organizational Profile

Primary brands, products, and/or services. the reporting
organization should indicate the nature of its role in providing
these products and services, and the degree to which it utilizes
outsourcing.

Organizational Profile

operational structure of the organization, including main
divisions, operating companies, subsidiaries, and joint ventures.

Organizational Profile

location of organization’s headquarters.

Organizational Profile

number of countries where the organization operates, and
names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in the
report.

Organizational Profile

nature of ownership and legal form.

Organizational Profile

Markets served (including geographic breakdown, sectors
served, and types of customers/beneficiaries).

49; 94

Organizational Profile

scale of the reporting organization.

49; 50

Organizational Profile

Significant changes during the reporting period regarding size,
structure, or ownership.

Organizational Profile

awards received in the reporting period.

report Parameters

reporting period.

report Parameters

date of most recent previous report.

report Parameters

reporting cycle.

report Parameters

Contact point for questions regarding the report contents .

report Parameters

Process for defining report content.

report Parameters

Boundary of the report.

report Parameters

Statement on any specific limitations on the scope or boundary
of the report.

report Parameters

Basis for the preparation of the

report Parameters

data measurement techniques and the bases of calculations.

3.10

report Parameters

3.11

report Parameters

3.12

report Parameters

explanation of the effect of any re-statements of information
provided in earlier reports, and the reasons for such re-
statement.

Significant changes from previous reporting periods in the
scope, boundary, or measurement methods applied in the
report.

table identifying the location of the standard disclosures in the
report.

- 189 -

203

187

GRI Table of Contents [GRI 3.12]

Indicator

Description

3.13

report Parameters

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

Governance, Commitments,
and engagement

Policy and current practice with regard to seeking external
assurance for the report. if not included in the assurance report
accompanying the sustainability report, explain the scope
and basis of any external assurance provided. also explain
the relationship between the reporting organization and the
assurance provider.

Governance structure of the organization, including committees
under the highest governance body responsible for specific
tasks, such as setting strategy or organizational oversight.
describe the mandate and composition (including number of
independent members and/or nonexecutive members) of such
committees and indicate any direct responsibility for economic,
social, and environmental performance.

indicate whether the Chair of the highest governance body
is also an executive officer (and, if so, their function within
the organization’s management and the reasons for this
arrangement).

For organizations that have a unitary board structure, state the
number of members of the highest governance body that are
independent and/or non-executive members.
State how the organization defines ‘independent’ and ‘non-
executive’. this element applies only for organizations that have
unitary board structures. (See the glossary for a definition of
‘independent’).

Governance, Commitments,
and engagement

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.

Governance, Commitments,
and engagement

linkage between compensation for members of the highest
governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance
(including social and environmental performance).

Governance, Commitments,
and engagement

Processes in place for the highest governance body to ensure
conflicts of interest are avoided

Governance, Commitments,
and engagement

Process for determining the qualifications and expertise of
the members of the highest governance body for guiding the
organization’s strategy on economic, environmental, and social
topics.

Governance, Commitments,
and engagement

internally developed statements of mission or values, codes of
conduct, and principles relevant to economic, environmental,
and social performance and the status of their implementation

Governance, Commitments,
and engagement

Procedures of the highest governance body for overseeing the
organization’s identification and management of economic,
environmental, and social performance, including relevant
risks and opportunities, and adherence or compliance with
internationally agreed standards, codes of conduct, and
principles.

Governance, Commitments,
and engagement

Processes for evaluating the highest governance body’s
own performance, particularly with respect to economic,
environmental, and social performance.

Governance, Commitments,
and engagement

explanation of whether and how the precautionary approach or
principle is addressed by the organization

- 190 -

Page

197

85; 86; 87

86; 87

86; 89

85; 86

9; 89

86; 88

85; 88

GRI Table of Contents[GRI 3.12]

Indicator

Description

4.12

4.13

4.14

4.15

4.16

4.17

eC6

eC7

en3

en4

en5

en6

Commitment to external
initiatives

externally developed economic, environmental, and
social charters, principles, or other initiatives to which the
organization subscribes or endorses.

Commitment to external
initiatives

Memberships in associations (such as industry associations)
and/or national/international advocacy organizations.

stakeholder engagement

list of stakeholder groups engaged by the organization.

stakeholder engagement

Basis for identification and selection of stakeholders with
whom to engage.
This includes the organization’s process for defining its
stakeholder groups, and for determining the groups with which
to engage and not to engage.

stakeholder engagement

approaches to stakeholder engagement, including frequency of
engagement by type and by stakeholder group.

stakeholder engagement

eC1

economic Performance

eC5

economic Performance

Key topics and concerns that have been raised through
stakeholder engagement, and how the organization has
responded to those key topics and concerns.

direct economic value generated and distributed, including
revenues, operating costs, employee compensation, donations
and other community investments, retained earnings, and
payments to capital providers and governments.

range of ratios of standard entry level wage by gender
compared to local minimum wage at significant locations of
operation.

Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation.

Procedures for local hiring and proportion of senior
management hired from the local community at significant
locations of operation.

environmental Performance direct energy consumption by primary energy source.

environmental Performance indirect energy consumption by primary source.

environmental Performance Energy saved due to conservation and efficiency improvements.

environmental Performance Initiatives to provide energy-efficient or renewable energy

based products and services, and reductions in energy
requirements as a result of these initiatives.

en7

environmental Performance initiatives to reduce indirect energy

en8

en12

en13

en14

en15

environmental Performance total water withdrawal by source.

consumption and reductions achieved.

environmental Performance Description of significant impacts of activities, products, and
services on biodiversity in protected areas and areas of high
biodiversity value outside protected areas.

environmental Performance habitats protected or restored.

environmental Performance strategies, current actions, and future plans for managing

impacts on biodiversity.

environmental Performance Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations, by level of
extinction risk.

- 191 -

Page

33; 115;
141

141

137

106

120

144

117

159

160

160; 178;
181

178

80; 160

156

166

167; 169

166; 167

166

GRI Table of Contents [GRI 3.12]

Indicator

Description

Page

en16

en17

en18

environmental Performance total direct and indirect greenhouse gas emissions by weight

environmental Performance other relevant indirect greenhouse gas emissions by weight.

environmental Performance initiatives to reduce greenhouse gas emissions and reductions

achieved.

en20

environmental Performance NOx, SOx and other significant air emissions by type and

weight.

en21

en22

en23

en24

environmental Performance total water discharge by quality and destination.

environmental Performance total weight of waste by type and disposal method.

environmental Performance Total number and volume of significant spills.

environmental Performance Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention
annex i, ii, iii, and viii, and percentage of transported waste
shipped internationally.

171

176

175

157

161

164

163

en26

environmental Performance initiatives to mitigate environmental impacts of products and

166

services, and extent of impact mitigation.

en28

environmental Performance Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with environmental laws and regulations.

in 2012, the Brazilian institute of the environment and renewable natural
resources – iBaMa drew up notice of infraction no. 685551-d, in the
amount of R$ 3,500,000.00 (three million five hundred thousand reais) for
eletrobras eletronuclear alleged failure to meet the conditions set forth in the
Preliminary license 279/2008 and of the installation license 591/2009. the
company has presented defense and awaits decision

en30

environmental Performance total environmental protection expenditures and investments

by type.

176

115

130

125

labor Practices and decent
Work

total workforce by employment type, employment contract,
and region.

labor Practices and decent
Work

total number and rate of employee turnover by age group,
gender, and region.

labor Practices and decent
Work

Percentage of employees covered by collective bargaining
agreements.

labor Practices and decent
Work

Percentage of total workforce represented in formal joint
management–worker health and safety committees that
help monitor and advise on occupational health and safety
programs.

labor Practices and decent
Work

rates of injury, occupational diseases, lost days, and
absenteeism, and number of work-related fatalities by region.

122; 125

labor Practices and decent
Work

education, training, counseling, prevention, and risk-control
programs in place to assist workforce members, their families,
or community members regarding serious diseases.

labor Practices and decent
Work

health and safety topics covered in formal agreements with
trade unions.

labor Practices and decent
Work

average hours of training per year per employee by employee
category.

126

122

121

- 192 -

la1

la2

la4

la6

la7

la8

la9

la10

GRI Table of Contents[GRI 3.12]

Indicator

Description

labor Practices and decent
Work

Percentage of employees receiving regular performance and
career development

la12

la13

la14

la15

labor Practices and decent
Work

hr1

human rights

hr2

hr3

hr4

hr5

human rights

hr6

human rights

hr7

human rights

hr8

human rights

hr9

human rights

hr10

human rights

hr11

human rights

so1

so4

so5

so6

society

reviews.

Composition of governance bodies and breakdown of
employees per category according to gender, age group,
minority group membership, and other indicators of diversity.

ratio of basic salary of men to women by employee category.

return to work and retention rates, by gender.

Percentage and total number of significant investment
agreements that include human rights clauses or that have
undergone human rights screening.

Percentage of significant suppliers and contractors that have
undergone screening on human rights and actions taken.

total hours of employee training on policies and procedures
concerning aspects of human rights that are relevant to
operations, including the percentage of employees trained.

total number of incidents of discrimination and actions taken.

Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk,
and actions taken to support these rights.

Operations identified as having significant risk for incidents of
child labor, and measures taken to contribute to the elimination
of child labor.

Operations identified as having significant risk for incidents of
forced or compulsory labor, and measures to contribute to the
elimination of forced or compulsory labor.

Percentage of security personnel trained in the organization’s
policies or procedures concerning aspects of human rights that
are relevant to operations.

total number of incidents of violations involving rights of
indigenous people and actions taken.

Page

119; 120

115; 118

121

129

144

90; 128

145

144

138

Percentage and total number of operations that have been
subject to human rights reviews and/or impact assessments.

49; 50; 128;
144

Number of grievances related to human rights filed, addressed,
and resolved through formal grievance mechanisms.

128

Percentage of operations with implemented local community
engagement, impact assessments, and development programs.

89; 91; 122;
137

actions taken in response to incidents of corruption.

Public policy positions and participation in public policy
development and lobbying.

Total value of financial and in-kind contributions to political
parties, politicians, and related institutions by country.

141

143

- 193 -

GRI Table of Contents [GRI 3.12]

Indicator

Description

Page

so7

society

total number of legal actions for unfair competition, anti-trust, and
monopoly practices and their outcomes.

regarding legal action for unfair competition, anti-trust and monopoly
practices, the company ed acre obtained a legal action, which was
suspended. the companies ed Piauí, ed rondônia , eletrobras amazonas
energia, eletrobras Cepel, eletrobras CGtee, eletrobras Chesf, eletrobras
eletronorte, eletrobras eletrosul, holding and eletrobras Furnas did not report
any legal action.

Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with laws and regulations.

Regarding fines and non-monetary sanctions in 2012, only ED Rondônia
recorded seven non-monetary civil sanctions arising from non-compliance
with laws and regulations, and one labor sanction. the company also
recorded a total of significant fines of R$ 7,703,528, of which R$ 7,652,500.00
refer to civil suits, and r$ 51,027.75 refer to labor / social security suits.

Operations with significant potential or actual negative impacts
on local communities.

Prevention and mitigation measures implemented in
operations with potential or actual negative impacts on local
communities.

type of product and service information required by procedures
and labeling, and percentage of products and services subject to
such requirements.

Practices related to customer satisfaction, including results of
surveys measuring customer satisfaction.

Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,
promotion, and sponsorship.

total number of incidents of non-compliance with regulations
and voluntary codes concerning marketing communications,
including advertising, promotion, and sponsorship by type of
outcomes.

Monetary value of (significant) fines for noncompliance with
laws and regulations concerning the provision and use of
products and services.

installed capacity, broken down by primary energy source and
by regulatory regime.

net energy output broken down by primary energy source and
by regulatory regime.

number of residential, industrial, institutional and commercial
customer accounts.

137

146

147

151

length of above and underground transmission and
distribution lines by regulatory regime.

60; 66

so8

society

so9

society

so10

society

Pr3

Product responsibility

Pr5

Pr6

Product responsibility

Pr7

Product responsibility

Pr9

Product responsibility

EU1

EU2

EU3

EU4

Electric Utilities

- 194 -

GRI Table of Contents[GRI 3.12]

Indicator

Description

EU6

EU7

EU8

Electric Utilities

EU10

Electric Utilities

EU11

Electric Utilities

EU12

Electric Utilities

EU14

Electric Utilities

EU15

Electric Utilities

EU16

Electric Utilities

EU19

Electric Utilities

EU20

EU21

Electric Utilities

EU22

Electric Utilities

EU23

Electric Utilities

EU25

Electric Utilities

EU28

EU29

EU30

Electric Utilities

EU30

setorial – elétrico

Management approach to ensure short and long-term
electricity availability and reliability.

demand-side management programs (dsM) including
residential, commercial, institutional and industrial programs.

research and development activities and expenditures aimed
at providing reliable electricity and promoting sustainable
development.

Planned capacity against projected electricity demand over
the long term, broken down by energy source and regulatory
regime.

Average generation efficiency of thermal plants by energy
source and by regulatory regime.

transmission and distribution losses as a percentage of total
energy.

Programs and processes to ensure the availability of a skilled
workforce.

Page

78; 79; 80;
160; 178

99; 100

62; 68

121

Percentage of employees eligible to retire in the next 5 and 10
years broken down by job category and by region.

131; 132;
133

Policies and requirements regarding health and safety of
employees and employees of contractors and subcontractors.

stakeholder participation in the decision making process
related to energy planning and infrastructure development.

approach to managing the impacts of displacement.

Contingency planning measures, disaster/emergency
management plan and training programs, and recovery/
restoration plans.

number of people physically or economically displaced and
compensation, by type of project.

Programs, including those in partnership with government, to
improve or maintain access to electricity and customer support
services .

number of injuries and fatalities to the public involving
company assets, including legal judgments, settlements and
pending legal cases of diseases.

Power outage frequency.

average duration of power outage.

average plant availability factor by energy source and by
regulatory regime.

Fator de disponibilidade média por fonte de energia e regime
regulatório.

122

138; 177

139

146

139

75; 100

146

- 195 -

Orquidea
Catasetun macrocarpum

- 196 -

limited assurance
report
and
statement Gri
application level
Check

- 197 -

Limited Assurance Report [GRI 3.13] and Statement GRI Application Level Check

KPMG Risk Advisory Services Ltda.
R. Dr. Renato Paes de Barros, 33
04530-904 - São Paulo, SP - Brasil
Caixa Postal 2467
01060-970 - São Paulo, SP - Brasil

Central Tel
Fax Nacional
Internacional
Internet

55 (11) 2183-3000
55 (11) 2183-3001
55 (11) 2183-3034
www.kpmg.com.br

LIMITED ASSURANCE REPORT ISSUED BY INDEPENDENT AUDITORS

To the Directors and Officers of
Centrais Elétricas Brasileiras S.A. - Eletrobras
Rio de Janeiro - RJ

Introduction

We have been engaged by Centrais Elétricas Brasileiras S.A. – Eletrobras (“Companhia” ou
“Eletrobras”) to present our limited assurance report on the compilation of the information
disclosed on the Annual and Sustainability Report 2012 of Centrais Elétricas Brasileiras S.A. –
Eletrobras, related to the year ended December 31st, 2012,.

Responsibilities of Company Management

The management of Eletrobrás is responsible for preparing and adequately presenting the
information in the Annual and Sustainability Report 2012 in accordance with the Guidelines for
Sustainability Reports of the Global Reporting Initiative – GRI (GRI-G3.1) and with the Sector
Supplement “Mining & Metals Sector Supplement– RG Version 3.0/MMSS Final Version” and
by the internal controls determined as necessary to ensure this information is free from material
misstatement, even though it was resulted by fraud or error.

Independent auditors’ responsibility

Our responsibility is to express a conclusion about the information in Annual and Sustainability
Report 2012 based on the limited assurance engagement conducted in accordance with
Technical Notice (CT) 07/2012 approved by the Federal Accounting Council and prepared in
accordance with NBC TO 3000 (Assurance Engagements Other Than Audits and Reviews),
issued by the Federal Accounting Council - CFC, which is the equivalent to international
standard ISAE 3000 issued by the International Federation of Accountants applicable to Non-
Historical Information. These standards require compliance with ethical requirements, including
independence ones and also that the engagement is conducted in order to provide a limited
assurance that the information in Annual and Sustainability Report 2012 taken as a whole is
free from material misstatement.

A limited assurance engagement conducted in accordance with NBC TO 3000 (ISAE 3000)
consists mainly of questioning to the management of Eletrobrás and other professionals of the
Company involved in the preparation of the information disclosed in the Annual and
Sustainability Report 2012 and also applying analytical procedures to obtain evidence that
allows us to make a limited assurance conclusion about the information taken as a whole. A
limited assurance engagement also requires additional procedures when the independent auditor
learns of issues which lead them to believe that the information in the Annual and Sustainability
Report 2012 taken as a whole could present material misstatement.

KPMG Risk Advisory Services Ltda., uma sociedade simples brasileira,
de responsabilidade limitada, e firma-membro da rede KPMG de firmas-
membro independentes e afiliadas à KPMG International Cooperative
(“KPMG International”), uma entidade suíça.

KPMG Risk Advisory Services Ltda., a Brazilian limited liability
company and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity.

- 198 -

Limited Assurance Report [GRI 3.13] and Statement GRI Application Level Check

The selected procedures were based on our understanding of the issues related to the
compilation and presentation of the information in the Annual and Sustainability Report 2012
and other engagement circumstances and considerations about areas where material
misstatement could exist. The procedures consisted of:

(a) the planning of the work, considering the relevance, amount of quantitative and qualitative
information and the operational systems and internal controls that served as a basis for
preparation of the information in the Annual and Sustainability Report 2012 of Eletrobrás.

(b) the understanding of the calculation methodology and the consolidation procedures used to
of the indicators through interviews with the personnel in charge of the preparation of the
information

(c) the application of analytical procedures to the quantitative information and enquiries about
the qualitative information and its relation to the indicators disclosed in the information
presented in the Annual and Sustainability Report 2012, and

(d) the comparison of the financial indicators with the financial statements and/or accounting
records.

The limited assurance engagement also consists of complying with the guidelines and criteria
for structuring the preparation that applies to the preparation of the information in Annual and
Sustainability Report 2012.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our limited conclusion.

Scope and limitations

The procedures applied in a limited assurance engagement are substantially less extensive than
those applied in an assurance engagement aiming to express an opinion about the information in
the Annual and Sustainability Report 2012. Due to this, it does not ensure us that we are aware
of all the issues that would be identified during an assurance engagement which aim to express
an opinion. If we had conducted an engagement in order to express an opinion, we may have
identified other issues and possible misstatements which can be in the information presented in
the Annual and Sustainability Report 2012. Therefore, we are not expressing an opinion about
this information.

The nonfinancial data is subject to more inherent limitations than the financial data, due to the
nature and diversity of the methods used to determine, calculate or estimate this data.
Qualitative interpretations of the data's materiality and accuracy are subjected to individual
presumptions and judgments. Additionally, we did not examine data informed for prior periods
or future projections and targets either.

- 199 -

Limited Assurance Report [GRI 3.13] and Statement GRI Application Level Check

Conclusion

Based on the applied procedures, described in this report, we have not identified any relevant
information that leads us to believe that the information in the Annual and Sustainability Report
2012, was not compiled, in all material respects, in accordance with the Guidelines for
Sustainability Reports of the Global Reporting Initiative – GRI (GRI-G3.1) and with the Sector
Supplement “Mining & Metals Sector Supplement– RG Version 3.0/MMSS Final Version and
with the records and files that subsidized its elaboration.

São Paulo, June 3rd, 2013.

KPMG Risk Advisory Services Ltda.
CRC 2SP023233/O-4

Eduardo V. Cipullo
Contador CRC 1SP135597/O-6

- 200 -

Limited Assurance Report [GRI 3.13] and Statement GRI Application Level Check

- 201 -

Broto de Andiroba
Carapa guaianensis

- 202 -

Credits / Contact
information

The production of this Annual and Sustainability Report is the result of the joint effort of the Eletrobras team.
We wish to thank for the participation and commitment of all.

General Coordination:
Sustainability Committee of the Eletrobras companies

Executive Coordination:
Superintendência de Planejamento, Gestão Estratégica e Sustentabilidade

GRI Consulting and text:
Keyassociados

Graphic Design:
AbóboraX Design

Review: Assertiva Produções Editoriais Ltda (ME)

Photos:
Dulce Nascimento

Publication:
Assessoria de Comunicação e Relacionamento com a Imprensa

Contact Information: (GRI 3.4)
Communication Aid and Press Relations
Av. Presidente Vargas, 409 – 17º andar - Cep 20071-003 – Rio de Janeiro – RJ – Brazil
PCC@eletrobras.com / tel.: +55 (21) 2514-5900
www.eletrobras.com

- 203 -

Vitória Régia
Victoria Amazonica

- 204 -

Glossary

- 205 -

Glossary

abdib

abdan

aBen

abendi

aberje

abinee

abipti

aBnt

Brazilian association of infrastructure and heavy industry

Brazilian association for the development of nuclear activities

Brazilian association of nuclear energy

Brazilian association of nondestructive tests and inspections

Brazilian association of Corporate Communications

Brazilian association of the electric and electronic industries

Brazilian association of technological research institutions

Brazilian association of technical standards

aBnt/CoBe

Brazilian electricity Committee

abraceel

Brazilian association of energy trading agents

abraconee

Brazilian association of accountants of the electric energy sector

abradee

Brazilian association of electricity distribution Companies

abrage

abraget

abrasca

abrate

abrinq

aBtd

aCrJ

aCt

adr

ahe

aie

aiea

Brazilian association of electricity Generating Companies

Brazilian association of thermoelectric Generating Companies

Brazilian association of Corporations

Brazilian association of large energy transmission Companies

Brazilian association of toy Manufacturers

Brazilian association of training and development

rio de Janeiro trade association

Collective Bargaining agreement

american depositary receipts

hydroelectric Potential

international energy agency

international nuclear energy agency

amcham

american Chamber of Commerce

ancat

aneel

anpei

ans

aptel

Bracier

BriC’s

Cadin

CBB

CBdB

CBPG

CCC

CCee

national association of Pickers of recyclable Material

national electric energy agency

national institute of research and development of innovative Companies

american nuclear society/latin american section

association of Companies owners of infrastructure and Private telecommunication systems

regional electrical integration Committee

Brazil, russia, india and China

Board of directors (Bd)

registry of information on non-settled credits in the federal public sector

Brazilian Basketball Confederation

Brazilian Committee on dams

Brazilian Committee of the Global Compact

Clean Coal Center

electricity trading Chamber

- 206 -

Glossary

CCP

Cde

Cebds

Cebri

CenP

Ceo

CeP

Cepel

Community Production Centers

energy development account

Brazilian Corporate Council for sustainable development

Brazilian Center on international relations

executive Council for norms-standards

Chief Executive Officer

Public ethics Committee

electric energy research Center

Cerhi-rJ

Rio de Janeiro State Water Resource Council

CFo

audit Committee (aC)

Chief Financial Officer

CGtee

thermoelectric Power Generation Company

CiC

Cicef

Cieese

Cier

Cigre

Ciisc

CiPa

Cites

CMa

CMde

CMe

Center for innovation and Competitiveness

intergovernmental Committee Coordinating the lower Basin of the Plata river

Celso Furtado international Center for development Policies

Integrated Committee on Energy Efficiency in the Eletrobras System

regional energy integration Committee

Brazilian Committee for the Production and transmission of energy

interministerial Committee for the inclusion of Pickers of recyclable and reusable Materials

internal accident Prevention Committee

Convention on International Trade in Endangered Species of Wild Fauna

World Water Council

agreement on Corporate Performance Goals

Brazilian Committee of the World Energy Council

Comparni

advisory Council for the iguaçu national Park

Cnen

national nuclear energy Committee

Conar

national Council for self-regulation in advertising

CoeP

Conpet

Consise

Copron

Committee of entities against hunger and for life

National Program for the Rational Use of Oil Derivatives and Natural Gas

superior Council of the eletrobras system

Protection Committee of the Brazilian nuclear Program

CPorG-Pr

organic Production Committee in the state of Paraná

CPs

CttP

CvM

dds

deC

droe

dva

health Promotion Center

Permanent Committee of labor Claims

Brazil’s securities and exchange Commission

daily dialogue on safety

Duration Equivalent of the Interruption by Consumer Unit

Western Regional Maintenance Division

value added statement

- 207 -

Glossary

ebitda

earnings Before interest, taxes, depreciation and amortization

eia

ePC

ePe

ePi

ete

FeaM

FeC

Fmase

Fepam

Fre

Funai

distribution Company

environmental impact study

Collective Protection equipment

energy research Company

Personal Protection equipment

Wastewater Treatment Station

eletrobras eletronuclear Medical assistance Foundation

Frequency Equivalent of Interruption by Consumer Unit

environmental Forum for the Brazilian electrical sector

state Foundation of environmental Protection

renewable energy sources

national indigenous Foundation

Funcoge

Corporate Management Committee Foundation

FnQ

FURG

Gee

GeM

GhG

Gri

Gtd

Gton

GWH

iasC

ideal

iea

national Quality Foundation

Rio Grande Federal University

Knowledge Management Plan

Greenhouse Gases

Municipal energy Management

Greenhouse Gas Protocol

Gigajoules

Global reporting initiative

Generation/transmission and distribution

operational technical Group of the northern region

Gigawatt hour

aneel Consumer satisfaction index

institute for the development of alternative energy in latin america

international energy agency

ieahydro

international energy agency implementing agreement for hydropower technologies and Programmes

iGs

iha

iiCa

inad

ini

inovar-
AUTO

inss

iPCC

iQM

system of indicators for Corporate sustainability Management

international hydropower association

inter-american institute for Cooperation in agriculture

delinquency rate

national investors institute

Program to Promote technological innovation and strengthening of the Production Chain in automotive
vehicles

national social security institute

intergovernmental Panel on Climate Change

Quality institute for the state of Minas Gerais

- 208 -

Glossary

International Union for Conservation of Nature

Ultra High Tension Laboratory

law of accessibility to information

section of the latin american nuclear society

installation license

transmission line

operating license

Competitive Brazil Movement

excellence Program for the state of santa Catarina

Ministry of science, technology and information

Ministry of Mines and energy

Provisional Measure

Megavolt ampère (apparent power)

Megavolt ampère(reactive power)

Megawatts

Megawatts hour

nitrous oxide

new York stock exchange

organization for Cooperation and economic development

international labor organization

national operator of the electric system

United Nations

United Nations Organization for Industrial Development

research, development and innovation

emergency action Plan

Basic environmental Plan

small hydroelectric Power Plant

IUCN

labuat

lai

las

MBC

MCe

MCti

MMe

Mva

Mvar

MWh

nox

nYse

oCde

oit

ons

ONU

onudi

P&d+i

Pae

PBa

PCh

Pcmso

occupational health and Medicine Control Program

PCr

Pde

Pdi

Pdst

Pdti

Pid

Pirtuc

Career and remuneration Plan

decennial Plan for the expansion of energy

individual development Plan

sustainable development Plan for the Micro regions surrounding the tucuruí hydroelectric Plant

technological and industrial development Program

termination incentive Program

regional insertion Plan for the tucuruí hydroelectric Plant

Plamgens

Municipal Plan for Management of energy

PMo

PMs

PPa

Monthly operating Plan

Personnel, Materials and services

retirement Preparation Plan

- 209 -

Glossary

PPdv

PrMe

Procel

standing Program for voluntary termination

Principles of responsible Corporate education

national electricity Conservation Program

Proinfa

Program to Promote alternative sources of energy

rBv

Bela Vista Wildlife Sanctuary

redetec

rio de Janeiro technology and innovation network

rempan

radiation emergency Medical Preparedness and assistance network

rGr

riMa

rol

saP

Global reversal reserve

environmental impact assessment

net operating income

systems, applications and Products in data Processing

sCMa

environmental Committee

seaprof

state department for agricultural-Forestry extension and Family Production

seC

securities and exchange Commission

secom - Pr

President’s social Communication department

senai

national industrial learning service

senergisul

Electricians Union in Rio Grande do Sul

senge

sesi

sesmt

sGd

siC

Engineering Union in Rio Grande do Sul

social services for the industry

specialized services in occupational health and safety engineering

Performance Management system

Citizen information services

sigecors

Industrial Solid Waste Control and Management System

sin

national interconnected system

smcno

new Fields Maintenance sector

sox

sPe

sulfurous oxide

Specific Purpose Enterprise

sPM/Pr

President’s Department on Policy for Women

UHE

information technology

Consumer Units

hydroelectric Plants

Unifem

Women’s United Nations Fund

Unise

Eletrobras Companies University

US GAAP

United States - Generally Accepted Accounting Principles

UTC

UTE

WANO

WNA

Camaçari thermoelectric Plant

thermoelectric Plant

World Association of Nuclear Operators

World Nuclear Association

- 210 -

Glossary

- 211 -

Pau Brasil
Caesalpinia echinata

Annual and

Sustainability Report

2012