Annual Report
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
CONTENTS
1. Introduction 02
About this report
Highlights
Message from the management
2. Corporate Profile 14
Eletrobras
Industry overview
How we create value
3. Strategy and vision of the future 24
Strategic planning
R&D and Innovation
Commitment to sustainability
4. Governance and compliance 53
Corporate governance
Risk management
Business integrity
5. Performance 86
Operation
Financial results
Capital market
Sector programs
6. Responsible environmental
management 105
Management system
Water
Biodiversity
Climate change
7. Relationships 127
Dialogue and communication
Employee development
Customer satisfaction
Aligned suppliers
Community engagement
GRI Content Index 163
Capital map 175
Limited assurance report issued by
independent auditors 177
Acknowledgments 180
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
ABOUT THIS REPORT
GRI 102-32; 102-40; 102-42; 102-43; 102-44; 102-50; 102-54; 102-56
For the18th consecutive year, we publish our Annual Report, with the
The figures for the financial statements of 12/31/2018 were still
objective of presenting to all our stakeholders our strategy, performance
influenced by the distribution business, considering that the transfer of
and commitment to the sustainable development of Eletrobras
the shares of the distribution companies took place on different dates
companies. The report brings our performance between January 1 and
throughout 2018 and 2019: 10/30/18 (Distribuição Rondônia ), 10/17/18
December 31, 2018.
(Distribuição Piauí), 12/6/18 (Distribuição Acre), 12/10/18 (Distribuição
Roraima), 03/18/19 (Eletrobras Distribuição Alagoas) and 04/10/19
The indicators in this report represent the companies in the generation
(Eletrobras Amazonas Energia).
and transmission segment that make up 100% of our revenues.
Eletrobras ended 2018 reaching the goal of selling all its
distribution companies, a management strategic decision that
repositions the company in the market, reinforcing the focus on
the business of generation, transmission and commercialization
of energy. For this reason, the distribution segment will not be
addressed in this report.
For the calculation of indicators, wherever necessary and to preserve
comparability, we will provide disclaimers about what is or is not included.
Best reporting practices
The report is based on global best reporting and management practices in
corporate sustainability:
• Guidelines of the Global Reporting Initiative (GRI), version Standards
2016, Core option;
• Principles of the Global Compact of the United Nations (UN);
•
•
Sustainable Development Goals (SDG);
Integrated Reporting (IR) Framework.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Useful reading tools
In addition to linear reading, at the end of the report you will find three
different possibilities for navigation, guided by:
GRI content index
SDG map
Capital map (Integrated Reporting)
Index explaining what each GRI
Map that presents the pages
Map locating the capitals that give support to the business
disclosure is and displays the page
whose contents support the
model. When you access the page where the capital is
on which it is reported.
reach to the SDG. By accessing
presented, you will find the symbols:
a page where there is mention
There you also find the
of a SDG, you will find the
disclosures relationship with the
symbol: SDG-X
Sustainable Development Goals
(SDG) and with the Principles of
Learn more about the SDG at:
the Global Compact of the United
https://bit.ly/28Jgntb
Nations (UN).
When you access the page where
there is an indicator, you will find
the symbol GRI XX-X.
Learn more about the GRI
guidelines at:
https://bit.ly/1UL5UAS
Financial
Human
Intellectual
Manufactured
Natural
Social and
Relationship
Learn more about the Integrated Reporting guidelines at:
http://bit.ly/2WN8JLi
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Reliability
1. Internal scenario assessment
Business and Management Master Plan 2019-
Identification of material themes in the Stakeholder
2023, which evaluated the most critical issues
In line with our objective of presenting
Survey results, applied by all Eletrobras companies,
for business continuity and for the generation of
reliable information, as in recent
from the data provided by the relationship channels
value in the long term.
years, the information published in
(Ombudsman and social networks), media reports, risk
the Ombudsman and social networks
maps and significant fines and in the SDG prioritized
6. Validation with the leadership
chapters were audited by KPMG Brasil,
by the management in its Business and Management
Presentation of the materiality analysis process
as directed by the Board of Executive
Master Plan 2018-2022.
Officers and the Board of Directors,
according to international verification
2. External scenario assessment
and the inferred priority themes to the Board
of Directors, in order to align with the business
strategy and validation of the company’s
parameters. Learn more in the
Assurance Report on page 178.
Benchmark of the material themes for the electric
materiality matrix, relative to the 2018 period,
sector.
as follows.
Materiality
GRI 102-46; 102-47; 102-49
For the 2018 Annual Report, we used
the process already carried out in 2017
to map the most important themes for
business sustainability, that is, with
greater potential for impact and value
creation in the opinion of our various
audiences. The process was based on the
following steps:
3. Prioritization with internal expert review
Workshop with sustainability coordinators of Eletrobras
companies, based on the GRI guidelines and the
Integrated Reporting for prioritizing material issues,
considering their potential impact and relevance in the
company’s strategy.
4. Prioritization with external expert review
Interviews with sustainability and in the electric sector
specialists, representatives of external stakeholders of
the company.
5. Strategic Alignment
Verification of the themes prioritized by stakeholders
vis a vis those chosen in the strategic deployment of the
l
a
n
r
e
t
x
E
c
i
l
b
u
p
3
2.5
2
1.5
1
0.5
0
8
7
6
2
3
10
9
5
1
4
0.5
1
1.5
2
2.5
3
Internal
public
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ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
LIMITS OF IMPACTS OF RELEVANT THEMES
Themes
1. Retention and
development of
employees
2. Relationship with
communities
3. Water (availability
and quality)
4. Climate Change
and Renewable Sources
5. Biodiversity
6. Relationship with
suppliers
7. Ethical culture
8. Health and safety
(employees)
9. R&D and
innovation
10. Governance and
risk
Legend
Within Eletrobras
(subsidiaries)
Outside Eletrobras
(stakeholders)
Related GRI Indicators
Capitals SDG
2
6
GRI 102-8, 401-1, 402-1, 404-1, 404-2,
404-3, 405-2; EU-14
3
3
1
3
4
8
2
1
8
7
7
GRI 411-1, 413-1, 413-2, EU-20, EU-21, EU-22
GRI 303-1, 303-2, 303-3, EU-21
4
5
6
7
GRI 201-2, 305-1, 305-2, 305-3, 305-4, 305-
5, 305-6, 305-7, EU-1, EU-2, EU-6, EU-10
7
6
7
GRI 304-1, 304-2, 304-3, EU-21
GRI 102-9, 102-10, 204-1, 308-1, 308-2,
412-3, 407-1, 408-1, 409-1, 103-2, 414-1
GRI 102-16, 102-17, 406-1, 205-2, 205-3,
EU-21
403-1, 403-2, 403-3, EU-16
5
5
3
5
6
6
4
5
6
7
EU-8
102-15, 102-18 a 102-39
All the company’s business,
except Eletropar
All the company’s business
1
2
Customers
Employees
3
4
Communities
Suppliers
5
6
Government
Investors
7
8
Society
All
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ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
RESPONSIBILITIES AND APPROVAL
The Board of Directors, supported by the Strategy, Governance and
Sustainability Committee, recognizes the responsibility to ensure the integrity
of this report. A dedicated team of technicians from Eletrobras companies
worked on the report and the Board believes that it provides a balanced and
appropriate presentation of the issues that have or could have a material effect
on our ability to create value.
We apply an integrated and collective approach in the preparation and
presentation of the information reported here.
I invite the stakeholders of Eletrobras companies to analyze this report and
provide feedback on the company’s performance and its disclosure about the
value generation process.
José Guimarães Monforte
Chairman of the Strategy, Governance and Sustainability Committee
Chairman of Eletrobras Board of Directors
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
HIGHLIGHTS
Financial capital
• 25.3% appreciation in Eletrobras common
•
Six privatized and transferred
shares (ELET3), more than 10pp above the
distributors, with a reversal of
Ibovespa, ending the year quoted at R$ 24.23.
Shareholders’ Equity of R$ 3.0 billion in
• Altogether, in 2018, the installed capacity
2018 and another R$ 5.0 billion for 2019.
of the Eletrobras System grew 1,667 MW,
• Agreement with Eletropaulo in the amount of
adding about R$ 392.34 million to the
R$ 1.1 billion and collection of R$ 95 million
• R$ 7.2 billion in impairment reversal
company’s annual revenue.
with the sale of shares.
and onerous contracts with the
redefinition of the Reference Price
•
In 2018, we added 189 km of
•
Sale auction of 26 participations in Special
of the Angra 3 Nuclear Plant and the
transmission lines and R$ 103 million to
Purpose Entities (SPEs), with a collection of
implementation period in 2026.
the company’s annual revenue.
R $ 1.3 billion, contributing to the pursuit of
financial discipline, essential for business
• 158% improvement in Ebitda as a
• More than R$ 2.0 billion in annual
continuity.
savings in Personnel, Material, Services
and Other (PMSO) accounts with
the reorganization of the staff, the
• Recognition of GAG Improvement (Cost
of Improvements to the Management of
implementation of a unified management
Generation Assets) in the amount of
system and the Shared Services Center
R$ 1.03 billion.
(CSC).
• Gains of R$ 1.4 billion in tax
optimization since 2017.
• 16% reduction in the debt and the
generation of operating cash ratio (Net
Debt/EBITDA).
result of cost reduction program and
privatization of distributors.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Manufactured capital
Intellectual capital
• Completion of important works, including
• Performance evaluation of the Board of
Santo Antonio (3,568 MW), Jirau (3,750
Directors, Executive Board and Fiscal Council
MW), Mauá (591 MW), São Manoel (700 MW)
of the Eletrobras companies by independent
and Belo Monte Transmissora (2,092 km).
external consulting companies and performance
evaluation of the directors indicated in the
•
Finalization of the sale of our six
SPEs.
distribution companies, in a movement
developed and planned in recent years
• We were listed for the 11th time in the
that allows us to maintain focus on
Business Sustainability Index (ISE) of B3
generation and transmission, segments
(Brasil, Bolsa, Balcão), reflecting the consistency
in which we have expertise and distinctive
and solidity of our commitment to results for
characteristics.
Brazilian society and to the implementation of
the best national and international practices of
• Update of the Reference Price of R$
corporate sustainability.
480.00 / MWh for the new Angra tariff,
enabling the resumption of Angra 3’s work,
• Achieved 63% of the 16 contribution targets
for completion and commissioning of the
with the priority SDG.
plant in 2026.
• Revenue from Energy Marketing in the
than in the previous year.
• R$ 337.0 million invested in R&D, 9.6% more
Free Contracting Environment (ACL) of
R$ 6.9 billion.
• Eletrobras Eletrosul was a finalist of
the National Award for the Sustainable
• 9% reduction in transmission losses.
Development Goals - SDG Brazil Award with the
Alto Uruguai I project.
9
Transmission line maintenance. Eletrobras Furnas / Daniela
Monteiro collection
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Social and relationship
capital
•
Start of the Kayapó Mekrãgnoti Program,
• Certification by the B3 State-Owned
the third social responsibility project carried
Companies Governance Highlight
out with the Kayapó do Oeste / Kabu
Program - Brasil, Bolsa, Balcão.
Institute, with a duration of five years and
•
Inquiries to the Securities and Exchange
a total financial contribution from Norte
• One of the nine companies
Commission (SEC) and litigators in the
class action against Eletrobras abroad
were closed, in addition to having concluded
discussions with the Department of Justice
(DOJ), which declined to sue the company.
Energia, consortium responsible for Belo
with maximum score in the
Monte, in the amount of R$ 11.25 million.
implementation of its integrity
program, among the 110 largest in
• Continuity of the Kayapó do Leste
Brazil, according to Transparency
Autonomy Support Plan, the second
International.
project carried out with the Kayapó do
• Consolidation of the integrity management
Leste, scheduled to be completed in the first
• Accumulated investments of more
process with the suppliers and recognition by
half of 2019.
the Business Ethics Award with the Integrity
Mechanisms for Third Parties of Eletrobras
Companies project.
• Consolidated customer satisfaction
with indigenous populations actions
index of 86.97% for the generation and
by the Norte Energia consortium, in
transmission business and for research,
five municipalities neighboring the
than R$ 6.3 billion in more than five
thousand socio-environmental and
• Human Rights Award 2018, by the then
development and innovation, both
HPP Belo Monte.
Ministry of Human Rights, in recognition of
exceeding the growth target compared to
the commitment Open Letter Companies for
the previous result, of 85.31%.
Human Rights.
• Maximum score, for the 2nd consecutive
year, in the Governance Indicator of the
Secretariat of Coordination and Governance
of State-Owned Enterprises (IG-Sest).
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ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Natural Capital
Human capital
• Voluntary adhesion to the Brazilian Business Commitment for
• Board of Directors with 55% of independent members, out of a total of 11,
Water Security, launched by the 8th World Water Forum by the
with 9% being female participation.
Brazilian Business Council for Sustainable Development (CEBDS).
• Beginning of the valuation of the ecosystem service “water
level of women in management positions as the percentage of women in
supply” and Biodiversity Conservation Symposium, in Eletrobras
the company (effective staff): women represent 19% of the workforce of
Furnas, focusing on the relationship between the business of large
Eletrobras companies but hold 21% of leadership positions.
• Overcoming the PDNG 18-22 goal to maintain at least the same percentage
companies and biodiversity and ecosystem services.
•
Improvement of 7.46% in the Employees’ Satisfaction Index
(Organizational Climate Survey), reaching 74.18%.
HPP Tucuruí Spillway. Eletrobras Eletronorte / Rony Ramos collection
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ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
MESSAGE FROM THE MANAGEMENT
GRI 102-14
In 2018, Eletrobras reaped the benefits
the result in 2018. The effects of these divestments
from the work it has been doing since 2016
will be reflected in the leverage levels reduction and
to reduce successive financial losses, low
in the improvement in the company’s Ebitda from
investment capacity and difficulty in raising
January 2019.
funds. The deep crisis that the company
has gone through is over. The market value
The projects schedule was updated and, in 2018, we
of the company jumped from R$ 9 billion
concluded Mauá 3 and São Manoel. In 2019, the works
in early 2016 to over R$ 33 billion in 2018,
of the Sinop plant will be completed and the Belo
reaching R$ 50 billion in February 2019.
Monte plant will enter into full operation, becoming
the third largest hydroelectric plant in the world, with
“Sustainable Excellence” was the goal of a
a total installed capacity of 11,233 MW.
broad restructuring program, materialized
in Eletrobras’ Business and Management
This new moment of the company is symbolically
Master Plan, with actions based on
represented by the operational structure
the “financial discipline”, “operational
modernization and new facilities. For the first time in
excellence” and “governance and
56 years, Eletrobras headquarters in Rio de Janeiro is
compliance” pillars. In December 2018, the
concentrated in an exclusive building, providing cost
Company’s Adjusted Net Debt / EBITDA
savings and work synergy. In only two programs -
ratio reached 3.1, presenting a substantial
Shared Services Center and Integrated Management
reduction on the high 8.5 rate registered in
System – from the processes standardization and
September 2016 and 3.7 in 2017.
optimization, an estimated annual savings in the
The privatization of distribution companies
309 million was saved resulting from the employee
and the sale of minority interests in 26
Specific Purpose Entities in the amount of
termination programs in 2018, and new voluntary
redundancy programs will continue in 2019.
order of R$ 617 million was recorded. Another R$
R$ 1.3 billion were of great importance for
Wilson Ferreira Junior, Eletrobras CEO. Eletrobras holding/Cláudio
Ribeiro collection
12
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
In the Governance and Compliance area,
In December, Eletrobras launched the Business
the company established its Statutory Audit
and Management Master Plan for the period
Committee and, for the first time, performed an
from 2019 to 2023, which, among other
independent evaluation of the Company’s and its
strategic guidelines, establishes the “Profitable
subsidiaries’ governing bodies.
Growth”: to sustainably grow, ensuring the
company’s profitability and value.
In recognition of these developments, Eletrobras
was certified in the B3’s State-Owned Companies
The great achievement in 2018 was to
Governance Highlight Program, returned to the
recover the market and society confidence in
Corporate Sustainability Index (ISE), also from
Eletrobras, in its employees and its leaders.
B3, and received for the second consecutive time
the maximum score in the IG-Sest governance
We take this special moment to thank
indicator. In parallel, the inquires with the Securities
our employees and greet them for their
and Exchange Commission (SEC) and with the
commitment and achievements. Now, the
litigants in the class action against Eletrobras
future awaits us, and we are getting the
abroad were closed, as was closed the discussions
with the Department of Justice (DOJ), which
company ready for it, capable of competing on
an equal footing with the great groups of the
declined to sue the company.
world’s electric sector.
As a Global Compact signatory, in 2018, Eletrobras
Wilson Ferreira Junior
continuously supported important initiatives,
Eletrobras CEO
such as adherence to the Brazilian Business
Commitment on Water Safety and projects
José Guimarães Monforte
selected from the prioritization of the Sustainable
Board of Directors President
Development Goals (SDG), which comprise the
2030 Agenda.
José Guimarães Monforte, Eletrobras CEO. Eletrobras holding/
Cláudio Ribeiro collection
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
ELETROBRAS
GRI 102-1; 102-2; 102-4; 102-5; 102-7; 102-6; 102-7; 102-10
Founded in 1962, Centrais Elétricas Brasileiras S.A. – Eletrobras controls 7 subsidiaries in electric power generation and transmission, a research center
(Eletrobras Cepel), a holding company (Eletrobras Eletropar), and half of the capital stock of Itaipu Binacional. The Company also holds an indirect interest in
172 Special Purpose Entities (SPEs), and minority interests in 29 companies.
2018 ELETROBRAS OVERVIEW
Brazil’s largest energy company in the world in generating capacity
GENERATION
TRANSMISSION
49,801 MW
of power generation
capacity in 227 power plants
44,221 MW in 48 hydroelectric
power plants
71,068 km in transmission lines
30.5%
of Brazil´s capacity
2,403 MW in 106 thermoelectric plants
Substations capable of transforming
254,782 MVA
We are the
5th hydroelectric power
generator in the world considering
installed capacity
95%
OF CAPACITY FROM CLEAN
ENERGY SOURCES
1,990 MW in 2 nuclear power plants
1,186 MW in 70 wind farms
1 MW in 1 solar power plant
We are Latin America’s largest transmitter,
we have played a key role in Brazil intercon-
nection in the last decades, and by 2018 we
account for almost half (47.3%) of trans(cid:9)
mission lines with voltages above 230kV
in the country.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
INTANGIBLE ASSETS OVERVIEW
INTERNATIONAL OPERATIONS
12.9 thousand
suppliers
15,658
employees
8 international
projects
4.7 GW
in generation projects
1,500 km
in transmission lines
R$ 337.0
million
invested in R&D+I
R$ 499.1
million
in social and
environmental actions
COMPETITIVE ADVANTAGES:
Expertise in large hydropower projects
and regional integration, size and
favorable geopolitical positioning.
R$ 326.9 million
invested in social, cultural and sports projects, as
well as projects related to land development,
promotion of citizenship, children and adolescent
rights, environment, creation of job opportunities
and income and health and food safety on
surrounding communities.
FOCUS:
Projects of regional integration and
renewable energy generation in
Latin America, aimed at local
partnerships, focusing on value
creation, ensuring adequate return
on investment.
Learn more in our Management
Report (page 34) available at:
https://bit.ly/2vytHOX
2018 HIGHLIGHTS
Signature of Technical Cooperation
with the Inter-American
Development Bank (IDB) and
ENDE to carry out an international
bidding process to contract studies
for the Brazil-Bolivia Electric
Interconnection.
Hydroelectric inventory studies in
the binational stretch of the Madeira
River along with Ende (Empresa
Nacional de Electricidad da Bolivia)
and CAF (Banco de Desarrollo de
América Latina)
Negotiations with the Argentine
state-owned company Ebisa
(Emprendimientos Energéticos
Binacionales Sociedad Anónima)
to resume the feasibility studies
on hydroelectric projects in
the Uruguay River.
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ANNUAL REPORT 2018 INTRODUCTION
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STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
CORPORATE STRUCTURE OF ELETROBRAS COMPANIES
(100.00%)
Eletrobras companies
Business Segment
Generation
Transmission
Services
Total
Number of SPEs
134
38
03
175¹
Generation and
Transmission
Generation
Distribution
Shareholding
Binational
Generation
SPEs
7
8
2
17
SPEs
7
8
2
17
SPEs
55
19
1
75
G
T
S
∑
G
T
S
∑
G
T
S
∑
(99.48%)
(99.58%)
(99.56%)
(99.91%)
(100.00%)
(83.71%)
(50.00%)
SPEs in Brazil
SPEs abroad
(99.99%)
(100.00%)
G
T
S
∑
55
19
1
75
SPEs
30
8
38
G
T
∑
(99.88%)
(100.00%)
Inambari Geração
de Energia S.A. -
Igesa (29.40%)
Rouar S.A. -
Parque Eólico
Artilleros (50.00%)
Minorities
G, T and D | 25 companies
1. The number of SPEs is taking into account direct and indirect interests and excluding the Specific Purpose Entities participating in more than one
Eletrobras company, differently from the numbers considered in the tables of each company. In this total, two SPEs abroad are included. Intesa was not
considered, which had the sale process concluded on 12/28/2018, from Auction nº 01/2018, and the Costa Oeste and Marumbi, which were transferred
from Eletrosul to Copel, through an exchange.
2. Eletrobras Distribuição Alagoas and Eletrobras Distribuição Amazonas were already sold at auctions held in 2018. The transfer of Eletrobras
Distribuição Alagoas’s shareholding control occurred on March 18, 2019 and Eletrobras Distribuição Amazonas is expected to occur on April 10, 2019.
2018, we completed the sale of
our six distribution companies.
This movement, developed and
planned in recent years, allows us
to maintain focus on generation
and transmission, segments in
which we have expertise and
distinctive characteristics.
During the year, we also held
a sale auction of 26 Special
Purpose Entities (SPEs), 16 of
which are generation and 10 of
transmission, which contributes
to the pursuit of financial
discipline, essential for the
business continuity.
To see the other corporate
events of the year, access the
Management Report, page 10,
available at:
https://bit.ly/2vytHOX
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Ownership structure
GRI 102-7
A publicly held, government-controlled
company, Eletrobras is controlled
by the Brazilian government and its
shares are traded on the São Paulo
Stock Exchange, the New York Stock
Exchange (United States), and the
Madrid Stock Exchange (Spain).
Learn more about share distribution
by shareholder and by region in our
Management Report (page 78, available
at https://bit.ly/2vytHOX
1,352,634,100 shares
80.4%
19.6%
COMMON SHARES
PREFERRED SHARES
Traded on 3 stock exchanges
ELET3 and ELET6
shares on the São
Paulo stock exchange
in Level 1 of
Corporate
Governance
American Depositary
Receipts (ADR) NYSE
EBR and EBR-B on
the New York stock
exchange
XELTO and XELTB
shares on the Madrid
stock exchange
through the Latibex
program
Learn more about the distribution of the company’s share capital at:
http://bit.ly/2EuSuse
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
INDUSTRY OVERVIEW
Macroeconomic indicators
The IPCA was pressured in 2018, mainly due
Regulatory overview
to the increase in health insurance prices, the
The GDP of 2018 showed a slow recovery, with
item with the highest inflation impact of the
In 2017, the Brazilian Ministry of Mines and
a low result, and the truck drivers’ strike was
year, with a cumulative increase of 11.17%,
Energy announced a decision to democratize
one of the factors that contributed most to
according to IBGE.
this low growth. Year-to-date growth was 1.1%
compared to 2017.
Sector indicators
According to the supply side, the result was
According to the Brazilian Energy Research
the capital of Eletrobras. The company’s
privatization proposal aimed to reduce
the Union’s share in Eletrobras’ capital by
preserving the veto power to guarantee the
maintenance of strategic decisions for the
influenced mainly by the services sector, which
Agency (EPE), electricity consumption
country and to boost the company’s investment
reached 472,242 GWh until December 2018,
capacity in the face of an economic growth
grew 1.35% in the year and the industry, with
growth of 0.93%, in the accumulated until the
an increase of 1.1% compared to 2017,
third quarter. The agricultural sector showed
following GDP growth.
poor performance, with a fall of 0.34% in the
accumulated over the year. In terms of demand,
The climate and billing cycle made household
recovery. For the process continuity, a decision
of the National Congress is awaited, where Bill
9,463 / 2018 is being analyzed.
there was a small turnaround in domestic
consumption of households in the face of a
slight recovery in the labor market.
Inflation measured by the Extended Consumer
Price Index (IPCA) reached 3.75% in 2018,
consumption grow 1.2% p.a. Commercial
grade increased 0.6% p.a. with growth in all
regions and industrial consumption grew by
1.3% p.a. As for the geographical regions,
there was a fall of 5.5% in the Northern
Region. The others registered increases in
For the Generation segment, the main
regulatory event in 2018 was the closing of
the Public Hearing 16/2017, whose objective
was to obtain subsidies for the regulation
improvement of the periodic review of the
Generation Annual Revenues - RAGs of the
(versus 2.95% in 2017), remaining below the
relation to 2017: 1.4% in the Northeast; 1.7%
hydroelectric plants included in the regime of
National Monetary Council (CMN) target (4.5%)
in the Southeast and Mid-West and 1.7% in
physical security and power quotas, pursuant to
in the inflation targeting regime.
the South.
Law No. 12,783 / 2013.
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ANNUAL REPORT 2018 INTRODUCTION
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STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
The result of this process allowed the
incorporation into the generation revenues of
the quota plants of a portion, whose purpose is
to enable improvements in these assets (GAG
Improvement), which resulted in an increase in the
revenue level referring to these plants.
For the Transmission segment, Aneel established
the Annual Revenue Allowances (RAPs) for the
concessionaires of public electricity transmission
service for the 2018-2019 cycle (07/01/2018
to 06/30/2019). In addition to the correction
for inflation, the increase in RAPs was due to
the start-up of authorized reinforcements and
improvements. On 12/31/2018, the corporate
RAP of Eletrobras companies was approximately
R$ 10,765 million, representing an aggregate of
approximately R$ 103 million in relation to 2017.
More detail on other regulatory events
that influenced the industry’s generation
and transmission in 2018 is available in our
Management Report (page 311) at:
https://bit.ly/2vytHOX
Maintenance in transmission tower. Eletrobras Chesf / Severino Silva collection
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
HOW WE CREATE VALUE
GRI 102-12
By nature, our business is aimed at
generating value to society, through access
to energy, which is an essential resource
for the operation of all productive sectors,
as well as people relations and social and
economic development.
In addition, as Latin America’s largest
company in the electric power sector, and one
of the largest in the world, we still have the
potential and the responsibility to positively
influence society and our stakeholders in all
aspects of our operations.
Our positioning enables us to
exert this positive potential
through progress towards a
more efficient, responsible,
transparent and, therefore,
more sustainable operation
in the short, medium and
long term, with greater
competitiveness and continuity,
generating value for investors
and other stakeholders.
To do this end, we seek to identify resources, assets
and capital that relate to our business and promote
responsible and sustainable management, in order to
our multiply and strengthen them.
This identification is necessary for the Company to
achieve a more cohesive and efficient approach to
corporate reporting, which reflects its processes
and actions, enabling greater connectivity between
different business units and financial and non-financial
(intangible) results, and therefore, generate value in the
short, medium and long term.
Considering the extension of the Company’s operations
and the continental dimensions of our country, the
effects of this integration are multiplied and the
values generated by it are more visible to the different
stakeholders.
The following figure shows the main aspects of value
generation of our performance.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
WORKFORCE AND FAMILY MEMBERS
15,658 employees
INVESTORS, SHAREHOLDERS AND MARKET ANALYSTS
Capitals:
Human
Intellectual
Social and
Relationship
Attributes of our
operations to generate
value - Perpetuation of
inputs
• Diversity promotion
• Training and
professional
development
• Promotion of health
and safety
•
Job opportunities and
income generation
• Quality of time
Value created in 2018
• 100% retention of male employees
and 99% of women after parental
leave
• 21.0% of leadership positions held
by women
• 21% of leadership positions held by
black, brown, yellow or indigenous
people
• 763.9 thousand hours of training,
R$ 25.7 million invested in training
• 100% covered by health and safety
agencies
•
Injury rate of 4.6 for men and 3.6
for women
• Percent increase in the
compensation of the Company
highest paid individual represents
0.8 of the average percentage
increase of the compensation of all
employees
• Absenteeism rate of 5.8 for men
and 6.0 for women
•
Improvement of 5% in the
Employee Satisfaction Index,
achieving 74.18% satisfaction.
Capitals:
Social and
Relationship
Financial
Attributes of our operations to generate
value - Perpetuation of inputs
• Return on invested capital
• Brand valuation and reputation
CUSTOMERS
Capitals:
Social and
Relationship
Manufactured
Attributes of our operations to generate
value - Perpetuation of inputs
• Sustainable and fair price hiring
• Reliable power supply
Value created in 2018
• 25.3% common shares
appreciation
• 1.3% of Net Revenue
invested in R&D+I
• R$ 33 billion in market value
• Company listed on B3’s
Corporate Sustainability
Index
• ROE (Net Income /
Shareholders’ Equity) of
23.84%
Value created in 2018
• 86.97% of customer
satisfaction with
generation, transmission
and research, development
and innovation
• 96.7% average availability
in hydroelectric generation,
98.81% in wind power and
99.5% in transmission.
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ANNUAL REPORT 2018 INTRODUCTION
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STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
COMMUNITIES, SOCIETY AND GOVERNMENT
PARTNERS, SPONSORS AND SUPPLIERS
Capitals:
Natural
Manufactured
Social and
Relationship
Attributes of our operations
to generate value -
Perpetuation of inputs
• Promotion of energy
efficiency
•
Improvement of the
country’s infrastructure
• Accessible clean energy
for all
• Wealth generation
• Ethical and transparent
conduct
• Research and
Development
• Environmental
preservation and recovery
Value created in 2018
• 23 million MWh saved through Procel
• 49,801 MW of generation capacity and
71,068 km in transmission lines
• R$ 3.8 billion invested in generation and
transmission
• 95.2% of clean sources in the energy
matrix
• 3.5 million consumer units and 16.4
million people benefiting from the Luz
Para Todos Program
• R$ 9.7 billion distributed as taxes
• R$ 1.4 billion paid as financial
compensation and royalties for the use of
water resources in hydroelectric dams
• 97% of employees and 82% of the
governance agents communicated on
ethics and anti-corruption
• 88% of employees trained on ethics and
anticorruption
• R$ 337 million invested in Research and
Development, of which R$ 19.3 million
related to energy efficiency.
• 9 million hectares in more than 60
protected areas supported by the
company
• R$ 499.1 million invested in social and
environmental projects
• R$ 326.9 million in Privet Social
• Private Social Investment
Investment
Capitals:
Social and
Relationship
Value created in 2018
• R$ 4.4 billion spent on 12,906
contracts with suppliers in
2018
Financial
• 89.7% of significant
Attributes of our operations
to generate value -
Perpetuation of inputs
• Wealth generation
• Promotion of a more
sustainable and ethic
supply chain
investment contracts include
clauses relating to human
rights
• Starting in 2018, 100% of
suppliers must fill out integrity
risk assessment forms.
• 90.4% of critical suppliers were
training in Anti-Corruption
Policies.
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ANNUAL REPORT 2018 INTRODUCTION
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STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
STRATEGIC PLANNING
GRI 102-16, 102-26, 102-28
The identification of trends, risks and
uncertainties related to our business, based
the estimates and guided the company’s
strategic planning in the definition of
guidelines, objectives and strategies for a 15-
year time frame, resulting in the 2015-2030
Strategic Plan (PE- 2015- 2030). Discover
the strategic guidelines of the plan on our
website: https://bit.ly/2I4O52n.
As a result of the 2015-2030 Strategic Plan,
we developed the Business and Management
Master Plan (PDNG), for the five-year period.
The PDNG includes targets and projects to
achieve strategic objectives and projections
to support decisions on business portfolio, as
well as guiding the preparation of business
and management plans (PNG) of our
companies.
The PDNG aims to present
a proposal to overcome the
challenges of Brazil’s current
economic scenario and of the
electric power sector, keeping
focus on the business identity
of Eletrobras and the business
support bases.
Below are the main advances
made under the 2018-2022 PDNG
period, and the new features and
challenges of the current PDNG,
with focus on the 2019-2023
period.
World Water Forum. Eletrobras holding / Jorge Coelho collection
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
BUSINESS IDENTITY
Mission
Operating in the energy
markets in an integrated,
profitable and sustainable
manner.
2030 Vision
Being one of the 3 largest clean
energy global companies and one
of the 10 largest electric power
companies in the world, with
profitability comparable to that of
the best in the industry and being
recognized by all stakeholders.
Values
Ethics and transparency; focus on
results; people appreciation and
commitment; entrepreneurship
and innovation and sustainability.
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ANNUAL REPORT 2018 INTRODUCTION
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GOVERNANCE AND
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
2018-2022 PDNG
achievements
Throughout 2018, the
PDNG remained in
line with its strategic
objectives of “enhance
competitive advantages in
generation, transmission
and marketing, achieving
corporate sustainability
recognized by all
stakeholders” and achieved
important results in the five
strategic pillars.
Challenge 22: Sustainable Excellence
Governance and compliance
2018 TARGET: ELIMINATE material weaknesses in our internal
Operational excellence
2018 TARGET: REDUCE the ratio between recurring PMSO and
controls as identified by independent auditors
Regulatory PMSO from 1.53 times for 1 time.
RESULTS IN
RESULTS IN
2015
2016
2017
2018
2016
2017
2018
6
4
1
2
Highlighted Initiatives
•
•
•
•
•
•
•
•
Standardization of Bylaws and approval lines at
Eletrobras companies
Relevant external acknowledgments (IG-Sest, Highlight
at B3 and ISE 2019 portfolio) pg. 53
Creation of the Statutory Audit Committee
Changes in business administration: 90% of Board
members and 97% of Executive directors.
Independent evaluation of 200 Board Members and
Directors of Eletrobras companies and evaluation of
190 Board Members appointed in SPEs and related
companies pg. 60
Implementation of the 5 Dimensions Program pg. 75
Completion of pending issues with US regulators and
closure of investigations before those authorities pg. 79
Reduction of 67% of material weaknesses from 2015 to
2018
1.57 1.53
times
times
1.32
times
Highlighted Initiatives
• Annual savings of:
•
•
•
•
•
•
•
R$ 74.4 million with a reduction of 758 remunerated
positions
R$ 1.2 billion with 2,991 terminations, of which 2,056 are
from the Extraordinary Retirement Plan and 918 from the
Consensus Dismissal Plan
R$ 91 million reducing overtime, hazard pay and on call pay
R$ 107 million with the implementation of the integrated
management system ProERP in four companies in 2018
and the remaining ones to be completed by 2019
R$ 616.0 million with the CSC Implementation: GO Live in
July 2018
R$ 649.8 million in gains with integrated trading (R$ 329.8
in 2017 and R$ 320.0 in 2018)
Creation of the working group from Resolution CNPE / 18
with the purpose of conducting studies and analyzes to
make feasible the Angra 3 project: Rise of the R $ 480 /
MWh Tariff and completion period for 12/31/2025
•
Recognition of R$ 1.03 billion with GAG Improvement
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ANNUAL REPORT 2018 INTRODUCTION
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GOVERNANCE AND
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Financial discipline
2018 TARGET: REDUCE the net debt/EBITDA ratio FROM 3.7 times to less than 3 times
People appreciation
2018 TARGET: REDUCE the accident frequency rate from 2.18
RESULTS IN
2016
2017
2018
6.7
times
3.7
times
3.1
times
to 1.38
RESULTS IN
2016
2017
2018
2.08
2.18
2.86
Highlighted Initiatives
•
Reduction of 60% in investment: R$ 50 billion in PDNG 15-19, R$ 35 billion in PDNG 17-21
and R$ 19 billion in PDNG 18-22
Highlighted Initiatives
•
R$ 1.68 billion raised from sales of shares and participations:
•
•
•
•
•
R$1.1 billion CELG D
R$ 364.7 million Energisa shares
R$ 46.0 million CPFL shares
R$ 70 million Tumarin shares
R$ 95 million Eletropaulo shares
•
•
•
Sale of distributors from the States of Piauí, in July, Rondônia, Acre and Roraima in August,
and Amazonas and Alagoas, in December
R$ 1.3 billion raised from the sale of 26 SPEs in September
R$ 17 million raised from sales of administrative real estate: R$ 12.9 million in 2017 and R$
4.1 million in 2018
• Gains of R$ 1.4 billion in Tax Optimization, R$ 750 million in 2017 and R$ 677 million in 2018.
•
Conclusion of important works, including Santo Antonio (3,568 MW), Jirau (3,750 MW), Mauá
3 (591 MW), São Manoel (700 MW) and Belo Monte Transmissora (2,092 km)
• Works in progress: Belo Monte (11,233 MW) and Sinop (402 MW)
• Overcoming the PDNG 18-22 goal to maintain at least the
same percentage level of women in management positions
as the percentage of women in the company (effective
staff): women represent 19% of the workforce of Eletrobras
companies but hold 21.0% of leadership positions pg. 49
•
•
•
R$ 25.7 million invested in 764 thousand hours of training
that had 51 thousand participations pg. 138
Career development and evaluation actions pg. 138
Review of the People Management Policy pg. 129
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ANNUAL REPORT 2018 INTRODUCTION
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VISION OF THE FUTURE
GOVERNANCE AND
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Sustainable performance
2018 TARGET: REDUCE the GHG emission intensity (ton of CO2e emitted
per thousand of R$ of Net Operating Revenue) from 0.348 in 2016 to 0.330
RESULTS IN
2016
2017
2018
0.348
0.295
0.247
Highlighted Initiatives
•
•
Investment of R$ 499.1 million in social and environmental actions pg. 107
Start development of the Environmental Licensing Monitoring System (SAL) pg. 108
• Adhesion to the Brazilian Business Commitment for Water Security pg. 112
•
•
Beginning of the valuation of the ecosystem service water supply pg. 11
Biodiversity Conservation Symposium, held in Eletrobras Furnas pg. 116
• Human Rights Workshop organized by Fundação Getúlio Vargas - FGV pg. 149
•
Start of hydroelectric inventory studies in the binational stretch of the Madeira River and its
main tributaries, located in Bolivian and Brazilian territories pg. 149
• New ethnodevelopment project with the Western Kayapó / Kabu Institute, which provides
an investment of R$ 11.3 million pg. 152
•
Transparency and accountability in initiatives to generate value at HPP Belo Monte pg. 158
Germplasm bank. Eletrobras Eletronorte collection
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GOVERNANCE AND
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PERFORMANCE
Integrated management
In April 2018, we completed the first stage of the implementation of ProERP, SAP ERP
Implementation Program in a Single Instance, including Eletrobras holding companies,
Cepel, Eletropar and Furnas. The second phase of the project, in January 2019, included
the incorporation of the companies Eletrobras Amazonas GT, CGTEE, Chesf and
Eletrosul. The final phase, planned for the first half of 2019, will incorporate Eletrobras
Eletronuclear and Eletronorte.
We also created a single, centralized instance for ERP governance and management,
the SAP Competency Center (CCSAP), to ensure and maximize ERP benefits and support
system operation. With the implementation of Pro-ERP, we obtained annual savings
estimated at R$ 180 million, only in services related to information technology.
ProERP will bring several benefits with a single view of the business:
• gains in the operation of the Shared Services Center (CSC);
• greater speed in making business decisions through access to reliable, real-time
information;
improved control in the physical-financial follow-up on the projects;
•
• ensuring transparency and traceability of business information;
• mitigation of problems and material weaknesses found in SOX audits; and
• access to information, consolidation and comparison of results of Eletrobras
companies in a timely and reliable manner.
RELATIONSHIPS
GRI CONTENT INDEX
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
CSC
The implementation of the Shared Services
Center (CSC) aims to centralize the transactional
and support activities of Eletrobras companies,
such as: finance, accounting, human resources,
supplies, information technology, legal, logistics
and infrastructure and general services. Its main
objectives are:
• Greater capacity for optimization in the use
and allocation of internal resources and
coordination of policies and good practices
within the Eletrobras System;
• Standardization of support processes of all
•
controlled companies, increasing control over
internal compliance levels; and
Increase the transparency and visibility
of operations, by the availability of data
on the business evolution and operational
performance.
With Aneel’s authorization, which took place in
January 2019, and the completion of the CSC’s
implementation, an annual savings of around R$
434 million is expected.
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ANNUAL REPORT 2018 INTRODUCTION
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VISION OF THE FUTURE
GOVERNANCE AND
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
2019-2023 PDNG challenges
Materiality
For the five-year strategic split, the company reassessed the main material themes for the next cycle, seeking to identify those that bring greater opportunity
or risk for value creation in the long run.
In this sense, five relevant guidelines were listed, which will be highlighted over the next five years, as shown in the table below.
National and
international trends
Guidelines
Performance
indicators
Value added
Impact on business
Associated
SDG
•
Increased demand for
energy;
• Market demand for clean
and renewable energy in the
energy matrix;
• Energy at affordable prices;
Profitable growth
Growing in a
sustainable way,
guaranteeing the
company’s profitability
and value.
and
• Demand for greater energy
efficiency.
•
Generation
expansion (MW);
• Transmission
Expansion (km);
• Adjusted Net Income;
• Global marketing
index; and
• % of investment
made.
• Contribution to sustainable
development;
• Financial return on invested
capital;
• Availability of energy for
all, with less risk of socio-
environmental impact;
• Energy at affordable prices; and
• Energy conservation.
Revenues
•
Increase in operating income.
Risks
•
•
•
Stakeholder questioning;
Biodiversity change;
Changing the communities
living in coexistence
territories; and
• Displacement of populations
in coexistence territories.
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ANNUAL REPORT 2018
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
National and
international trends
Guidelines
Performance
indicators
Value added
Impact on business
Associated
SDG
• Corporate engagement with
the SDG;
• Commitment to
international agreements;
• Commitment to public
policies;
• Appreciation of companies
reporting on sustainable
practices; and
• Attention to the risks of
climate change and changes
in planet biodiversity.
Sustainable
performance
To be recognized as
an energy generation
and transmission
company, socially,
environmentally and
financially responsible.
• Net Debt / Adjusted
• Brand and business reputation
EBITDA;
ISE Global Score;
•
• DJSI Global Score; and
• GHG / ROL Emissions.
appreciation;
• Availability of energy for
all, with less risk of socio-
environmental impact;
• Contribution to sustainable
development;
• Partnership in public policy
management; and
• Safety and reliability in
operation (energy safety).
• More stringent regulatory
determinations;
• Demand for quality and
reliable infrastructure;
Increased productivity; and
•
• Ensure energy supply.
Operational
Excellence
Search operational
excellence throughout
the value chain.
•
Regulatory PMSO/
PMSO;
• Relative generation
availability;
• Availability of
• Safety and reliability in
operation (energy safety);
• Availability of energy for
all, with less risk of socio-
environmental impact;
transmission lines;
• Contribution to sustainable
• Efficiency of
generation units; and
• Efficiency of
transmission units.
•
•
development;
Improvement to the country’s
infrastructure;
Increased research and
innovation and technological
development; and
• Energy at affordable prices.
Risks
• Reputational;
• Divestment of shareholders;
• Stakeholder questioning;
• Environmental; and
• Regulatory.
Cost
•
Increased costs with more
modern technologies for
sustainable performance.
Risks
• Discontinuation of
operations; and
• Power failure.
Cost
• Penalties from regulators; and
• Reduction in operating income.
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PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
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GRI CONTENT INDEX
National and
international trends
Guidelines
Performance
indicators
Value added
Impact on business
Associated
SDG
• Demand for greater
•
transparency;
Implantation of more
effective controls that
inspire market confidence;
• Preventive risk management;
•
and
Intolerance to corruption
practices.
• Demand for high
performance;
• Need for more workforce
qualification;
• Demand for innovation
and development of new
technologies;
• Accident prevention
culture, promoting safe and
protected environments for
employees;
• To ensure human rights, with
effective measures for the
eradication of child labor,
slave labor and protection of
labor rights; and
• Valuing diversity and
gender equality in the work
environment.
Governance and
business integrity
enhancement
Strengthen internal
controls and corporate
governance, ensuring
business integrity.
• Number of material
• Financial return on invested
•
weaknesses reported;
IG-Sest Global Score;
and
• Score in sustainability
indexes compared to
other players.
capital;
• Brand and business reputation
•
appreciation; and
Integrity (ethical, legal and
transparent conduct).
People appreciation
Develop and
strengthen technical
and technological skills,
valuing employees and
fostering the culture of
results.
• Accident frequency
(with leave - own
employees);
• Employee
satisfaction (%);
• Amount invested
R&D+I / ROL;
• Financial return on invested
capital;
• Employment and income
generation;
• Health and safety promotion;
• Quality of life;
• Fostering respect for human
• Company turn-over;
• Accident severity
•
rate;
• % of women in
management
positions; and
• Number of women on
Boards of Directors.
rights;
Increased research and
innovation and technological
development;
• Professional growth and
training;
• Brand and business reputation
appreciation;
• Private social investment; and
• Fostering a more sustainable
supply chain.
Risks
•
• Divestment of shareholders.
Reputational; and
Cost
• Loss of company value;
• Higher uptake costs; and
• Fines and penalties for the
company and its managers.
Risks
• Low productivity; and
• Brain drain.
Cost
• Occupational leave;
• Labor claims; and
• Low return on training
investments.
33
ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
The 2019-2023 PDNG
brings updates to 2018-
2022 PDNG, assimilating
the rapid changes in
the national scenario
in order to respond to
the challenges that still
persist for the next five
years.
PROFITABLE
GROWTH
SUSTAINABLE
PERFORMANCE
OPERATIONAL
EXCELLENCE
IMPROVEMENT
OF GOVERNANCE
AND CORPORATE
INTEGRITY
PEOPLE
APPRECIATION
Strategic guidelines
Grow in a sustainable
way, assuring the
company’s rentability
and value
Strategic objectives
Increase rentability
in electric energy
businesses; and
Expand generation and
transmission businesses
in a sustainable way.
Be recognized as an
energy generation
and transmission
company with social,
environmental and
financial responsability
Pursue operational
excellence throughout
the value chain
Strengthen internal
controls and corporate
governance, assuring
corporate integrity
Develop and strengthen
technical and
technological skills,
valuing employees and
fostering the culture of
results
Act as a sustainable
development agent with
their relationship chain;
and
Optimize the
indebtedness level
reaching international
standards.
Promote continuous
improvement in process,
project and decision
supporting systems
management; and
Improve corporate
governance through
benchmarking, based
on the market’s best
practices;
Adapt Eletrobras’
companies operational
and corporate cost
structures.
Improve internal controls
and risk management by
promoting transparency
and reliability; and
To foster high
performance culture,
knowledge management
and recognition;
Develop R&D+I projects
focused on aggregating
value; and
Promote safety and
employee well-being.
Strengthen Eletrobras
corporate integrity.
Thus, for each of the five strategic guidelines from the materiality analysis, we define corporate goals to be achieved in 2019,
seeking an alignment with global trends and mitigation of risks posed.
34
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
For the purpose of disseminating the plan and simplifying understanding, some benchmarks of each strategic
guideline were chosen, presented in the following figure, together with the results achieved in 2018, although there
is a much more robust set of indicators and targets, as disclosed in the Annex II.
People Appreciation
Accident frequency
(with leave - own employees)
2018
2.86
2019
1.33
Generation and transmission
Generation expansion (MW)
2018
2019
2,037
1,667
Transmission expansion (KM)
2018
2019
1,266
189
Improvement of Governance
and Corporate Integrity
Reduction of material weaknesses
2018
2
2019
0
Sustainable Performance
Net debt/EBITDA
2018
3.1
2019
<3.0
Operational Excellence
PMSO/ PMSO Regulatory
1.32
2018
2019
1.25
2018: executed
2019: goal
Get to know in detail the
initiatives foreseen in the 2019-
2023 PDNG available on our
website https://bit.ly/2L9NOxh
and, with the content and in
Annex II: 2019-2023 PDNG
Goals, detailing the targets set
for the next year.
35
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Performance monitoring
and revisions of our plans. In our
with Eletrobras companies since
portal, we make available quarterly
2010. The agreement is closely
We strongly believe that the
achievement of our strategic
partial results of our main
indicators.
objectives will lead us to a distinct
We establish tactical and
aligned with the business and
management plan, containing
trend and results indicators
in the financial, operational,
position in the global power
industry, generating value for
all our stakeholders. To ensure
that we are on the right track,
we continuously monitor the
development of our strategic
initiatives through project
operational indicators and goals
management, integrity, people and
related to the performance
socio environmental.
of processes that support the
sustainability of our business.
The results of the agreement
Some of these indicators refer
demonstrate the degree of
to Eletrobras’ commitment to
alignment of our companies with
the 2030 Agenda Sustainable
the strategy of Eletrobras Holding
management methodology, proven
Development Goals. These
and are impacting the managers’
to be related to the success of
high-performance companies.
A set of performance indicators
is tracked systematically to verify
compliance with the company’s
strategy. The result of this
monitoring is regularly presented
to management through executive
reports, favoring the accountability
and identifying needs of
indicators are presented
annual variable remuneration and
throughout the report and, on a
participation in the profits and
consolidated basis, in Annex I -
results of the workforce, including
Contribution with the SDG.
managers. The strategic indicators
goals achievement is also input for
To strengthen the engagement
assessing the performance of the
of the workforce and managers
workforce, managers and board
in achieving our strategic goals,
members. These instruments
we have established meritocratic
are points of convergence of
management tools to recognize
everyone’s efforts to reach our
and reward these efforts. The
vision of the future and the
adjustments and corrective actions
Corporate Performance Targets
sustainability of Eletrobras.
to achieve the strategic objectives
Contract is the main one signed
36
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Strategic Scorecard
Dimensions
Strategic Guidelines
Variable remuneration
of Directors
Variable remuneration of
Employees and Managers
Related SDG
Economic-financial
Profitable growth
Grow in a sustainable way, guaranteeing the
profitability and value of the company.
58%
55%
Operational
Operational Excellence
Seek operational excellence across the value chain.
0%
Environmental
Social
Governance, Management
and others
Sustainable Development
To be recognized as an energy generation and
transmission company, socially, environmentally and
financially responsible.
People Appreciation
Develop and strengthen technical and technological
skills, valuing employees and fostering a culture of
results.
Improvement of Governance and Corporate
Integrity
Strengthen internal controls and corporate
governance, ensuring business integrity.
12%
5%
26%
11%
14%
9%
11%
We have a Corporate Project Management Office - Corporate EGP that monitors, analyzes and reports to top management the progress of the relevant
projects and programs of Eletrobras companies - such as those linked to the Business and Management Master Plan - PDNG and to the annual variable
remuneration of the managers. We follow the good practices of Project Management Body of Knowledge (PMBOK), as recommended by the Project
Management Institute (PMI). We increased our maturity in project management by 36% from 2015 to 2018, according to the Prado-MMGP methodology. The
greater the maturity in project management, the greater the chance of succeeding in projects and, consequently, improving business performance.
37
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Investments
In 2018, Eletrobras invested R$ 4.6 billion,
corresponding to 74.1% of the budget estimated
for the year. The main differences between
investments planned and carried out are
essentially the result of investment below
projected in corporate transmission works and in
special purpose entities.
When compared to 2017, there was an increase of
9.4% in total Corporate Investment and a 41.6%
decrease in Investments in SPEs.
The main corporate investments were Eletrobras
Chesf transmission system (R$ 0.49 billion) and
nuclear plant III (R$ 0.41 billion), and the main
investments in SPEs were in the implementation
of Belo Monte HPP (R$ 0.47 billion), Santo Antônio
HPP (R$ 0.26 billion) and Jirau HPP (R$ 0.14 billion).
The PDNG provides for investments of R$ 30.2
billion for the 2019-2023 period, an increase of
52.5% over the five-year period 2017-2021, of
which R$ 12 billion related to investments in the
Angra 3 nuclear power plant project.
PDNG 2019-2023 INVESTMENT
(R$ million - currency)
Planned investment in the
amount of R $ 30,175 million
2019
888
1,860
2,556
371
5,675
2,748
2020
1,876
1,111
2,404
356
5,747
2,987
2021
2,957
1,068
2,029
339
6,393
4,025
2022
3,201
816
1,814
333
6,163
4,016
2023
3,138
932
1,815
312
6,197
4,070
Infrastructure and other
Transmission (corporate + SPE)
Generation (other corporate + SPE)
Generation – Angra 3
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
R&D AND INNOVATION
GRI 103-1; 103-2; 103-3; G4-EU8
Our commitment to bring energy and sustainable development
to the country is present in the Company’s mission, vision and
organizational values and in the transversality of our electric power
programs. The continuous investment in Research & Development and
Innovation (R&D+I), focused on promoting clean energy generation,
environmentally less impacting and socially responsible, creating value
for stakeholders, is fundamental to achieve this commitment and to
our sustainability strategy.
The Electric Power Research Center (Eletrobras Cepel) has been
increasing its partnership with new members and has achieved a
high degree of satisfaction from its main customers. In addition, it
undertakes international partnerships with institutions for technical
cooperation in research, development and innovation in the areas
of electricity and related services, including research of interest to
both parties, training, staff development, sharing of equipment and
facilities for testing in the context of international services carried out
jointly with these new partners.
In 2018, we invested R$337.0 million in R&D+I, including the projects of
Eletrobras companies, an increase of 9.6% over 2017.
TOTAL INVESTMENT IN R&D+I (R$ MILLION)
337.0
307.6
2018
2017
INVESTMENT IN R&D+I (BY CATEGORY R$ MILLION)
Renewable energy
59.3
41.3
Distributed energy
Innovation for
sustainability
Energy efficiency
1.8
3.6
9.3
25.8
19.3
18.3
In the Eletrobras companies, the investment in R&D+I is made through
Eletrobras Cepel and public calls for the capture of innovative projects
Generation and transmission
technologies
233.9
182.5
to be invested in partnerships with other institutions.
Distribution technologies
13.4
36.1
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Value generation in the R&D+I process
We operate throughout the innovation chain, from the early
stages* of knowledge production to the launch of the product
in the market, with its application in the daily routine of the
companies, training of the teams and future improvement.
Developing innovative products and specialized services
that lead to important contributions to the electric power
sector and help consolidate national technological expertise,
generating value and social, economic and environmental
development for different stakeholders.
L
E
P
E
C
9
8
7
6
5
4
3
2
New technology in successful operation
Complete new technology,
ready to start operation
Prototype of new technology in an
operational environment
Prototype of the new technology
in a realistic environment
New technology testing in a realistic
environment
New technology testing in the laboratory
Analysis, research and design of
new technology
Creation of the concept and application
of the new technology
r
o
t
c
e
S
1
Monitoring and reporting
w
o
fl
s
s
e
c
o
r
p
n
o
i
t
a
v
o
n
n
I
F
e
e
d
b
a
c
k
f
r
o
m
t
h
e
i
n
n
o
v
a
t
i
o
n
c
h
a
i
n
w
i
t
h
i
d
e
n
t
i
fi
c
a
t
i
o
n
o
f
n
e
w
R
&
D
&
I
d
e
m
a
n
d
s
40
ANNUAL REPORT 2018
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Contribution to sustainability
We present below, among the several projects
developed by Eletrobras Companies in 2018, those
that have the greatest potential to contribute to the
social and environmental aspects for the promotion of
sustainability.
Knowledge support in the
interaction with universities
and research institutions
Development of innovative
and efficient solutions for:
. manufacturers
. sector organizations
. other companies in the sector
Contribution to
sustainability and
environmental
improvements is
part of at least
60% of projects
Support for projects that
promote the access of
remote communities to
electricity with installation
of solar panels
Development of models that
optimize the energy operation
of the National Interconnected
System (SIN) and support efficient
management of water resources
41
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Industry and sector development
Asset management
Expansion and operation planning
Products focused on the monitoring, diagnosis and management
of the electric power system assets that increase the reliability and
The series of methodologies and the computer programs widely used in
safety of system operation with great benefits related to avoiding
expansion and operation planning and real-time operation are essential tools
failures and costs.
for the management of the sector, within strict safety criteria, enabling the
sustainable use of the country’s energy resources. In addition, they significantly
2018 highlights
collaborate for the diversification of the electricity matrix on a renewable basis,
• The DianE system was integrated with SAP ProERP at Eletrobras
with the consequent reduction of financial costs, therefore relevant for the
and had new functionality made available with the introduction of
development of the Brazilian hydroelectricity production.
2018 highlights
methodology for evaluating the state of battery banks.
• The SOMA system is being installed in the Itaipu plant’s
generators, and the development of SOMA-TurboDiag (for the
• An important evolution of the DESSEM tool has been completed in
monitoring of thermoelectric turbines) was completed.
response to Aneel’s definition for the program to be the tool responsible for
• Development of a new transient voltage measurement system for
implementing the new regulatory guidelines, price formation and dispatch on
high voltage TCs (550 kV), with application in the field.
an hourly basis, starting in January 2020.
•
Scenario re-sampling capabilities were introduced in the Newave PDDE
strategy, bringing more precision to the future cost function.
•
In the Matrix program the representation of technologies for energy
storage (batteries and reversible plants) was introduced, considering horo
seasonality.
• The ANATEM program began to incorporate the automated calculation of the
new coupling indices and performance of the CC links and was implemented
in ANAREDE the automation of the Transmission Margin Calculation.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Efficiency in transmission
2018 highlights
Development of optimized transmission line projects, providing higher
• Provision of the first operational version of the TopSim System, which will
transmission capacity over long distances with cost reduction of
provide better training and qualification for transmission system operators
between 10% and 30%, and lower environmental impact.
in electricity sector companies, through precise simulations of the electrical
networks operating conditions.
2018 highlights
• Providing new functionalities in the ELEKTRA, ATERRAMENTO
and SAD-LT computational programs, including, respectively, the
inclusion of new staked structures for insulation coordination
calculation, rapid assembly of grounding loops and a greater
number of transmission tower models and new methodology to
calculate structures’ weight.
Knowledge management and human capital
System operator training simulator
Simulator integrated with the Open Energy Management System
(SAGE), which is used by generation, transmission and distribution
concessionaires, as well as the Brazilian Electric System Operator
(ONS), promoting a more effective training of the different electric
system agents, simulating the practice in the real management
environment.
Electric Vehicle Program (VE)
Developed by Itaipu Binacional, in partnership with a Swiss company
from the energy generation sector, the program seeks to research
electric mobility solutions that are technically and economically
feasible for individual, cargo and passenger transport vehicles,
with the objective of reducing consumption of fossil fuels and the
consequent emissions of Greenhouse Gases.
The project has already promoted the development of electric
versions of car models from various automakers, cargo vehicles,
buses and even the first manned electric airplane in Latin America.
The Program also seeks to develop battery technology and the
sharing of electric cars in order to popularize these vehicles.
Learn more at: https://bit.ly/2EcY9Sv
43
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Complementary generation
Brazilian Wind Potential Atlas
Planning and operation of new distributed sources
New distributed and intermittent sources of energy generation
have been quickly disbursed, mainly wind and solar power.
Eletrobras Cepel remain updating data from the Brazilian Wind Potential Atlas
With this, the sector must face important challenges with
of 2001, which includes information on wind speed and direction throughout
the expansion planning model, system operation and the
the country, at different heights, and an estimate of its wind potential. The
technological knowledge of the equipment involved. Eletrobras
atlas is publicly available at http://bit.ly/2HFemD8 and contributes toward
Cepel prepares itself to tackle these challenges by investing in
the generation of knowledge for the entire sector, promoting the planning and
the constant evolution of operation management tools such
expansion of clean and renewable wind energy projects in the country.
2018 highlights
as Newave (in order to incorporate these new sources) and
DESSEM, responsible for implementing the new regulatory
guideline for price formation and dispatch on an hourly basis
• Conclusion of parametric adjustments of the BRAMS (Brazilian Atmospheric
from January 2020. Thus, the projects support the transformation
Modeling System) model results, considering data measured in the years
of the national electricity system into a more sustainable and
2012, 2014 and 2015, which allows greater precision in the evaluation of the
efficient model, in addition to contributing to a more efficient
wind potential. These results will be publicly available on the internet (http://
management of energy resources, considering the insertion of
bit.ly/2HFemD8), throughout 2019.
wind energy sources in the planning of the electro-energetic
By 2019, Eletrobras Cepel’s investments will be directed to
acquisitions of equipment and systems aimed at supporting the
development of research, as well as updating and expanding its
laboratory infraestructure.
operation.
2018 highlights
• Resources were introduced to the energy planning and
scheduling programs to incorporate intermittent (wind)
sources uncertainty modeling into the DECOMP model and
the consideration of fast storage devices (batteries) in the
DESSEM model.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
In 2018, Eletrobras Cepel participated actively
in the debates on climate change inside and
outside the company, elaborating the technical
report “Adapting to Climate Change in Eletrobras
Companies - risks and opportunities” and
participating in the International Workshop
“Adaptation and Resiliency Indicators for
Eligibility of Hydropower Projects to Climate
Bonds”, from the International Energy Agency,
the International Hydropower Association and
the Mott MacDonald Consultancy.
Climate change management
Mudclima
Project that supports Eletrobras in the strategy of adaptation to climate change,
addressing three dimensions related to climate change:
• Researches for the use of climatological information in the construction of
scenarios of flows to the reservoirs, evaluating the impact of climate change on
the generation of energy in Brazil;
•
Strategies and actions for social and environmental adaptation to climate change,
one based on communities and another on ecosystems; and
• Development of strategies and adaptation actions aimed at electric power
companies.
2018 highlights
• Climatic and hydrological characterization and construction of future scenarios
of influent flows to hydroelectric power plant reservoirs from the IPCC
Representative Concentration Pathways (RCPs) and also from the consideration of
the El Niño - Southern Oscillation.
•
Implementation and application of a multicriteria analysis methodology based
on the AHP and VIP Analysis methSDG for planning the long-term expansion of
generation systems considering greenhouse gas emissions.
•
International Workshop “Adaptation and Resiliency Indicators for Eligibility of
Hydropower Projects to Climate Bonds”, with the participation of Eletrobras Cepel,
International Energy Agency, International Hydropower Association and Mott
MacDonald Consultancy.
• Creation of the Technical Report “Adapting to Climate Change in Eletrobras
Companies - Risks and Opportunities”.
45
ANNUAL REPORT 2018 INTRODUCTION
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VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Management of water resources
Optimization models for the energy operation of the National
Interconnected System (SIN)
As hydroelectricity is the country’s main source of energy, we have
Flows forecasting and generating models
Eletrobras Cepel develops forecasting (Previvaz) - which in 2018
evolved studies to start promoting daily rather than weekly
forecast - and generation models of flow scenarios (Gevazp),
required for the planning of the operation and for planning
a portfolio of continuously evolving and improving models aimed at
and scheduling models of flood control in the reservoirs of the
optimizing energy operations (such as the Matriz, Newave, Decomp and
hydroelectric power plants (Cheias project), allowing for more
Dessem projects), officially adopted for the planning of the SIN operation in
efficient management of water resources, allowing the shared use
order to contribute to the efficient management of water resources.
of reservoirs.
2018 highlights
•
In the CHEIAS project, a study was carried out to verify
the influence of the ENSO (El Niño - Southern Oscillation)
phenomenon on the behavior of the flood regime in the
Paraná river basin. The results of this study will allow to
optimize the use of the reservoirs of the hydroelectric plants
to control floSDG in the region.
•
In the PREVIVAZ project, the analysis of numerical forecasts
of daily rain was intensified, aiming to evaluate its use in the
daily forecast models and in the future version of the weekly
PREVIVAZ forecast model. In addition, an integrator system of
flow forecasting models was developed, composed of modules
for data analysis, execution and evaluation of results.
Salto do Curuá (PA). Eletrobras holding/Jorge Coelho collection
46
ANNUAL REPORT 2018 INTRODUCTION
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VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Incorporation of the social and environmental dimension in
the planning of the electric power sector
Methodologies for the evaluation of the environmental dimension
Among the R&D+I projects, some are aimed to support mitigation
of social and environmental impacts of the sector, such as: AAEXP
(Environmental Assessment for Expansion), which develops
methodologies for the environmental evaluation of generation and
transmission expansion plans, and SINV – (System for Hydropower
Inventory Studies of River Basins), which develops methodologies to
assist decision-making processes in the feasibility of hydroelectric
power plant in river basins, based on a multi objective approach, which
considers the energy benefits, as well as negative and positive social
and environmental impacts.
2018 highlights
•
In the AAEXP project, the Ambientrans Tool was updated,
allowing the definition of corridors with less potential of negative
socio-environmental impact through the implementation of
transmission lines using geographic information systems (SIG).
• Workshop “Sustainability in Wind Farms - Experiences and
Perspectives”, as a step in the development of the project,
which has as one of its objectives to propose an action matrix
for wind power projects, in order to minimize conflicts between
stakeholders and, consequently, minimize risks during the
implementation of this type of project.
Fostering the innovation culture
The R&D+I investment of Eletrobras companies follows guidelines
and general orientations of research and development related to
science or technology, aiming at enhancing innovation capacity
and competitiveness of companies. The companies, in line with the
Technology Policy Commission (CPT), act in an integrated manner,
focusing on optimizing investments, as well as disseminating and
sharing results while maximizing performance.
Promoting mechanisms for recognition and valorization of
employees, which contribute to the results of R&D+I projects, is also
very important. In this context, in 2018, the CPT began planning
the Eletrobras Companies Innovation Award, with biennial editions,
with the main objective of “fostering an innovation culture, by
appreciating the innovative effort of its employees”.
The award also aims to disseminate the solutions and results that
will serve as inspiration and reference for the implementation of new
innovative initiatives by other employees and for the promotion of
knowledge management of innovations in companies.
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COMMITMENT TO SUSTAINABILITY
GRI 102-32
Strategic guidance
Support to achieve the SDG
We want to maximize the value generated for our
In order to optimize our contribution to
stakeholders and, therefore, our strategy seeks to
sustainability beyond the business and
balance the economic, financial, environmental and
support priority causes for the country,
social aspects of our projects, in order to promote
we have been signatories to the Global
respect for human rights, to prevent risks, ensuring
Compact since 2006, and in 2017, we
the availability and quality of the resources needed
integrated our strategy into the UN
for our business continuity.
Reflecting the consistency and solidity of our
commitment to results for Brazilian society and
the implementation of the best national and
international practices of corporate sustainability,
in 2018, we were listed for the 11th time in the
B3 Corporate Sustainability Index (Brasil, Bolsa,
Balcão). The ISE groups publicly traded companies
with better commitments and practices in
corporate governance, economic-financial, social,
environmental and climate change aspects.
Sustainable Development Goals (SDG). Get
to know in detail the process of prioritizing
and integrating the SDG into our strategy
in our latest sustainability report:
https://bit.ly/2U0p2jW
The SDG alignment demonstrates our
commitment to sustainable development
and strengthens ties with civil society
and governments, working to foster and
implement public policy. Learn more about
initiatives on their websites:
http://bit.ly/2WJj8aY and
http://bit.ly/30YPkXg
HPP Furnas. Eletrobras Furnas/Roberto Rosa collection
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In 2018, we worked
towards the indicators
alignment evolution
and practices to the 5
prioritized SDGs, for
which 16 indicators
and their targets were
defined, integrated into
the 2018-2022 PDNG
- Challenge 22, whose
results demonstrate our
evolution and focus on
results.
MONITORING OF PDNG TARGETS BY PRIORITIZED SDGs
Status at the end of 2018
95.2%
94.6% share in clean
energy sources in the
consolidated energy
matrix of Eletrobras
Companies
22.99 billion
of KWh
23.80 billion kWh/
year in energy savings
as a result of Procel
actions
21.0%
21.0% of women in
management positions
2.86
1.38 accident frequency
rate.
18%
100% human rights
violations dealt with by
2020
12.3 times
Reduction of pay
inequality, the highest
wage is corresponding
to 10 times
the lowest salary, by
2020
Goal achieved
Goal partially achieved
Goal not achieved
0.247
0.330 tCO2e/
R$ thousand
in total
emissions of
greenhouse
gases by Net
Operating
Revenue (ROL)
3.4%
consumption
reduction
0.2% in reduction of own
consumption of energy from
public distribution network
1.4%
1% of the regulatory Net
Operating Revenue (ROL)
applied in R&D+I projects
0.4%
consumption
increase
0.3% reduction of
administrative consumption
from the water supply network
1.13%
consumption
reduction
0.2% reduction in the
consumption of fossil fuels of
the terrestrial vehicle fleet
94%
60% of critical suppliers
submitted to the due
diligence evaluation
83.4%
40% of suppliers
stimulated to adopt
practices of valorization
and promotion of diversity
96%
100% of employees
trained in anti corruption
courses
90%
60% of critical suppliers
trained in anti-corruption
policies and procedures
99%
60% of commercial
partners trained in anti
corruption courses
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We identified 43 cases involving actions, projects or programs developed by
Eletrobras and its companies, which are aligned with the prioritized SDG.
Our efforts and the main results of the commitment to the 2030 Agenda
permeate the whole report. We highlight, in particular, the main actions,
achievements and challenges related to the five SDG prioritized in our vision
for the future. Our business and activities also contribute to some specific
goals of other SDG, as indicated at the beginning of each chapter.
To reinforce our engagement with the 2030 Agenda, we present in the Annex I
Contribution with the SDG the indicators and targets for 2019 that show our
efforts and vision of the future to reach our commitments to SDG by 2030.
In addition, the agreement of multi-year indicators and targets directly linked
to the SDG inserted in the Strategic Plan, linked to the variable managers
and employees’ compensation strengthens and brings consistency to the
implementation of the 2030 Agenda.
Eletrobras Eletrosul was a finalist for the
National Sustainable Development Goals Award
- SDG Brasil Award, an initiative of the federal
government, which will be awarded biennially
until 2030. The submitted project, Alto Uruguai
I, is based on three axes: energy conservation
(rational and non-wasteful use), use of
alternative energy sources with emphasis on
protecting the environment and universal access
to electricity.
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Management structure
GRI 102-20; 102-32
To ensure alignment among planning, strategy,
performance and sustainability, Eletrobras relies
on the Sustainability Management Executive
Committee, which is linked to the Presidency,
reports to the Strategy, Governance and
Sustainability Committees and is coordinated
The committee is responsible for
The superintendence is responsible for
implementing internationally recognized
supporting and interacting with the Strategy,
sustainable management processes,
Governance and Sustainability Committee,
procedures and tools within Eletrobras
disclosing and disseminating the guidelines
companies, monitoring and evaluating
established by the committee, and proposing
results, as well as establishing goals and
improvement plans, topics identified in the
by the Superintendence of Strategy, Business
improvements.
Management and Sustainability.
materiality research and the editorial model
adopted in the Annual Report.
Main power house HPP Belo Monte. Norte Energia collection
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Voluntary commitments
GRI 102-12; 102-13
We endorse national and international initiatives that discuss
social, environmental, economic and human rights issues
in business, in order to expand our potential contribution to
sustainable development.
Eletrobras also voluntarily participates, in a strategic way, in
organizations focused on the promotion of sustainability in
different topics, which are relevant to its business.
Support for initiatives
• Pro-Equity Gender and Race Program, since 2005;
• UN Global Compact;
• Declaration of Commitment to Fight Against Sexual
Exploitation of Children and Adolescents;
• Women’s Empowerment Principles;
•
Sustainable Development Goals – SDGs;
• Brazilian Business Commitment for Water Security;
• National Volunteer Program - Viva Volunteer; and
• Open Letter of Companies for Human Rights.
Corporate sustainability
• Brazilian Business Council for Sustainable Development –
CEBDS;
• Global Compact Brazil Network – CBPG;
• Global Reporting Initiative - GRI Community; and
•
Ethos Institute of Business and Social Responsibility.
Business management
• Brazilian Institute of Corporate Governance – IBGC; and
• National Forum on Ethics Management in State-owned Companies.
Environment
• Brazilian Electricity Sector Environment Forum – FMASE.
Climate change
• Brazilian Forum on Climate Change (FBMC);
• Companies for Climate - EPC;
Water
• National Council of Water Resources – CNRH; and
• World Water Council – WWC.
Industry development
• Chamber of Electric Power Commercialization – CCEE;
• Brazilian Association of Thermoelectric Generators – Abraget;
• Brazilian Association of Electric Power Distributors – Abradee;
• Cier (Regional Energy Integration Commission) Brazilian Committee – Bracier;
• Brazilian Committee on Dams – CBDB;
•
Brazilian Association of Electric Power Generation Companies – Abrage;
• Brazilian Association of Large Electric Power Transmission Companies – Abrate;
• Brazilian Association on Wind Energy – ABE Eólica;
• Brazilian Association on Nuclear Energy - ABEN;
• World Association of Nuclear Operators – WANO; and
• World Nuclear Association – WNA.
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CORPORATE GOVERNANCE
Commitment
GRI 103-1; 103-2; 103-3
Our commitment to best management practices and
sustainability was recognized through important
achievements in 2018:
Ethics, transparency, equity,
accountability and corporate
responsibility are the guiding
principles of our governance
practices.
As we are a publicly traded
company with shares traded
in Brazil, the United States
and Spain, we comply with the
requirements of the Securities
and Exchange Commission
(CVM) / B3 - Brasil, Bolsa,
Balcão, the Securities and
Exchange Commission (SEC)/
New York Stock Exchange
(NYSE) and Latibex, of the
Madrid Stock Exchange.
• for the third consecutive year, we reached the
maximum score in the Governance Indicator of the
Secretariat of Coordination and Governance of
State-Owned Companies (IG-Sest);
• we were certified by the Governance Highlight
Program on State-Owned Companies of B3 — Brasil,
Bolsa, Balcão;
• we were one of the nine companies, among the
110 largest in Brazil, that obtained the maximum
score in the implementation of its integrity program
according to Transparency International; and
• we received the Business Ethics Award for the
Integrity Mechanisms for Third Parties of Eletrobras
Companies.
In addition, we are listed in Level 1 of Corporate
Governance and in the Corporate Sustainability
Index (ISE), both segments of B3 that recognize
the commitment and adoption of best practices in
governance and sustainability, respectively.
The Minister of Planning, Esteves Colnago, and Eletrobras Board Advisor, Edvaldo
Luis Risso, for IG-Sest certification. Ascom-MP Collection
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Policies and tools
GRI 102-16
We have an institutional structure of policies and
management tools, continuously updated, that
establish standards, values and behaviors to be
observed for good business governance.
Improving the robustness of these
documents and policies favors the creation
and maintenance of a safer business
environment by ensuring management
alignment with established principles and
values, reinforcing company commitments
and enhancing investor and market
confidence in general.
Main management tools
• Bylaws;
• Manuals, guides and regulations;
• Guidelines, codes, and policies to
guide conduct and commitment on
different aspects and relationships
involving strategic issues such as
ethics, compliance, integrity, risk
management and sustainability;
•
Specific policies on issues relevant
to the business operation (e.g.,
systems, people management,
project management, etc.); and
• Rules and internal regulations of the
governing bodies.
Click here for the full documents
available on our website.
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Management structure
GRI 102-16; 102-18; 102-17; 102-19; 102-22; 102-23; 102-24; 102-26; 102-30
MANAGEMENT ON 12/31/2018
CEO (non-executive)*
José Guimarães Monforte
Directors
Carlos Eduardo Rodrigues Pereira
(representing the employees)
Elvira Baracuhy Cavalcanti Presta
(representing the minority
shareholders holding preferred
shares)*
José Pais Rangel (representing the
minority shareholders holding
common shares)*
Ariosto Nunes Culau
Edvaldo Luís Risso
Manoel Arlindo Zaroni Torres*
Mauro Gentile Rodrigues Cunha*
Vicente Falconi Campos*
Walter Baère de Araujo Filho
Wilson Ferreira Junior
*Independent Directors
General Meeting
Board of Directors
Supervisory Board
President
Sitting
Members
Agnes Maria de Aragão da Costa
José Wanderley Uchôa Barreto
Márcio Coelho Leão
Patrícia Valente Stierli
André Eduardo Dantas
Internal Audit
Ombudsman
Secretariat of
Governance
Strategy, Governance and
Sustainability Committee
Management, People and
Eligibility Committee
Audit and Risk Committee
Divestiment Commission
Presidency
Wilson Ferreira Junior
Generation
Department
Transmission
Department
Distribution
Department
Compliance
Department
Department of
Finance and Investor
Relations
Antônio Varejão
de Godoy
José Antonio
Muniz Lopes
Antônio Varejão
de Godoy
Lucia Casasanta
Wilson Ferreira Junior
Administration
Department
Aracilba Alves da
Rocha
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Shareholders Meetings
Board of Directors
Objective: decision-making body composed
by shareholders with right to vote, about
strategy and general business orientation.
Meetings: Annual Shareholders Meeting
(AGO), held annually until April, and
Extraordinary General Meetings (AGE),
promoted whenever the Board of Directors
deems convenient or in situations provided
for by law. The company makes available on
its website the “Manual for Participation in
Eletrobras Shareholders ‘Meetings”, which
supports the shareholders’ understanding
of the matters proposed at the General
Meetings and defines how the participation
in them should be.
Frequency in 2018: one AGO and four AGEs
were held. At all meetings, the company
made available to its shareholders the
possibility of voting through the distance
ballot, even when it was not mandatory,
which led to the achievement of relevant
quorums ranging from 79% to 88%.
Objective: protects and values the company,
optimizing the long-term return on investment, and
seeks to balance the expectations of all stakeholders.
Eletrobras’ main governance body, in charge of the
strategic direction, mission, vision and values, with
active participation in the elaboration of the strategic
planning and in the Business and Management Master
Plan (PDNG) of the company.
Composition: up to 11 members, elected at the Annual
Meeting, being at least 30% independent. The term
of office of the Board of Directors members is unified
and not longer than two years, with a maximum of
three consecutive reelections permitted. Of these
members, seven are appointed by the Minister of Mines
and Energy; one Director appointed by the Minister
of Planning, Development and Management; one, by
minority shareholders holding common shares; one, by
minority shareholders holding preferred shares issued
by Eletrobras, representing at least ten percent of the
Our Board of Directors has 6
independent members from
a total of 11. In 2018, the
representation of women on
the Board also evolved, with 9%
participation. The average board
members’ tenure in the current
collegiate is 1.64 year.
Meetings: ordinary and extraordinary
monthly meetings whenever necessary.
Executive Board members may be
share capital; and one representing the employees
requested to attend.
(Under Act No.12,353/2010).
Frequency in 2018: 33 meetings, with
attendance described as follows.
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Member
Term
Participation in meetings %
Wilson Ferreira Jr.
04.28.17 to 04.26.19
José Guimarães Monforte
04.28.17 to 04.26.19
Edvaldo Luís Risso
04.28.17 to 04.26.19
Ariosto Antunes Culau
04.28.17 to 04.26.19
Vicente Falconi Campos
04.28.17 to 04.26.19
Esteves Pedro Colnago Júnior (1)
04.28.17 to 04.10.18
José Pais Rangel
04.28.17 to 04.26.19
Mauro Gentile Rodrigues da
Cunha
Carlos Eduardo Rodrigues
Pereira
Elvira Baracuhy Cavalcanti
Presta (2)
03.23.18 to 04.26.19
04.28.17 to 04.26.19
04.27.18 to 04.26.19
Walter Baère de Araújo Filho
05.25.18 to 04.26.19
Manoel Arlindo Zaroni Torres
04.27.18 to 04.26.19
Average
100
100
94
91
85
88
100
100
88
95
89
95
(1) Letter of resignation received by Eletrobras on 04.10.18.
(2) On March 12, 2019, Mrs. Elvira Baracuhy Cavalcanti Presta took over as Eletrobras’
Chief Financial and Investor Relations Officer. As a result of her tenure in the new position,
Ms. Elvira is no longer a member of the Board of Directors - CA and the Audit and Risk
Committee - CAE of Eletrobras.
(3) The term of office shall be extended until the effective investiture of the new members
pursuant to article 26 of Eletrobras Bylaws.
Lecture by Bernardinho at the closing event of the year. Eletrobras holding /
Cláudio Ribeiro collection
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The Board of Directors has three committees to advise it on analysis, follow-up and recommendation on specific issues in each area: Strategy,
Governance and Sustainability Committee; Audit and Risk Committee; and Management, People and Eligibility Committee, the last two of which
are provided for by Eletrobras’ Bylaws. Each committee has three vacancies for board members, and its duties are set out in the Company’s internal
regulations. In 2018, 13, 34 and 16 meetings were held, respectively.
2018 RELEVANT TOPICS
ELETROBRAS’ BOARD OF DIRECTORS ADVISORING COMMITTEES
Strategy, governance and sustainability
Management, people and eligibility
Audit and risk
Strategic planning and corporate performance
Supplementary Pension Plans and Health Plans
Investments and Divestments
Governance and Statutory Reform
Investments and Divestments
Corporate Reports
Corporate Policies
Termination Plans
Value Creation
Eligibility of managers and fiscal councilors
Financial Management
Improvement of internal monitoring
reports (critical areas)
Litigation Management
Regulatory Affairs
Financial performance and funding
Physical and Financial Monitoring of Major Works / Projects
Unified People Management Regulation
Corporate operations
Sustainability Agenda
R&D+I
Directors’ Perfomance Evaluation
Integrity and Compliance
Career and Compensation
Internal Audits
Integrity and Compliance
Human Capital Development
Corporate Policies
Ombudsman and Whistleblower Channel
Ombudsman and Whistleblower
Channel
Supplementary pension plan
Financial Statements
Internal controls
Risk Management
Information Security
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Executive Board
Supervisory Board
Moreover, it has the support of the
Objective: general management of
Objective: responsible for representing
Divestment Commission, created in
Eletrobras, based on the guidelines set by the
the shareholders’ supervisory function,
2017 and made up of three Board
Board of Directors.
members and two employees, whose
overseeing the management to ensure
compliance with their statutory and bylaw
purpose is to support decisions to sell
Composition: seven officers, including
duties.
shares in companies that it owns.
the CEO, elected by the Board of Directors.
The term of office is unified and not longer
Composition: five members and their
Meet the composition in the internal
than two years, with a maximum of three
relative alternates. The term of office of
regulations of the committees and
consecutive reelections permitted. The chief
the Supervisory Board members is no more
in the Regulation of Internal Audit at
executive officer is elected from among the
than two years, with a maximum of two
Eletrobras website.
Board of Directors members, excluding the
consecutive reelections permitted. Members’
chairman of the board of directors. The board
appointment is made by the majority
also has committees and workgroups created
shareholder (three members); by the minority
on-demand to discuss the technical aspects
shareholders holding common shares (one
of management matters.
Meetings: weekly meetings.
Frequency in 2018: 79 meetings.
member) and by the minority shareholders
holding preferred shares (one member).
Meetings: ordinary and extraordinary
monthly meetings whenever necessary.
Frequency in 2018: 13 meetings.
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Selection and development of
leadership
Selection
any breaches of integrity - and consultations with
the ombudsmen of Eletrobras Companies.
Our process for analyzing the nominees for
positions at the Board of Directors, Executive
Since 2017, in addition, the Management, People
Board and Supervisory Board, complies with
and Eligibility Committee has deliberated on the
the company’s legislation, Bylaw’s and other
nomination of the members of Eletrobras Board
normative documents, and since 2016, it was
of Directors and Supervisory Board and of all the
improved to ensure an ethical and value-
companies controlled by Eletrobras, promotes
creating process.
and monitors the adoption of good corporate
governance practices related to compensation
For all appointments to directors and officers,
and to the succession for the entire Eletrobras
the integrity and governance areas make
a preliminary analysis on the compliance
system, as well as the effectiveness of its
processes, proposing updates and improvements
status of the nominees - with reference to the
whenever necessary.
sanctions database applied by the Public Ethics
Commission and the electronic websites of
regulatory agents(1), to assess whether there are
(1) The Brazilian Securities and Exchange Commission (CVM),
the Brazilian Court of Audit (TCU), the Superior Electoral
Court (TSE) and the State Court of Accounts (TCE).
GRI 102-27; 102-28; 102-35; 102-36; 102-37
With the publication of Law 13,303 (State-Owned
Companies Act) and its regulations (Decree
8,945) - which has brought new requirements
for the selection and qualification of candidates
for management and Supervisory Board member
positions at state-owned companies -, since 2016
we have improved our analysis and qualification
processes for nominees and we have promoted
several initiatives towards the development of
these professionals.
EVOLUTIVE CYCLE OF THE BOARD
OF DIRECTORS EVALUATION
Ethics and
compliance
based selection
Continuous
development
Compensation
aligned to the
business’ value
creation
Meeting on biodiversity. Eletrobras holding / Jorge Coelho collection
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Evaluation
EVALUATION RESULTS IN 2018
In order to ensure performance aligned with
the company’s strategy, every year, the Board
of directors, executive officers and Supervisory
Board and committees members undergo an
evaluation process, since 2013, with a unique
methodology for all Eletrobras companies,
covering 327 people. In 2018, the evaluation
was carried out independently by external
consulting company in all Eletrobras companies
and included structured interview, self-
assessment and personalized 360º evaluation
- for chairman of the Board of Directors and
CEO. The evaluation criteria include three
pillars: competencies, results and attributions
of the body.
The results are scored and consolidated in a
report and the respondents participate join the
feedback meeting.
From this analysis, we seek to stimulate the
continuous evolution of governance and the
training of upper leadership through training
actions in line with the priority themes.
2.42
A. Skills
0.00-0.75
Well below
The Board of Directors has performance well
below the defined standard.
2.30
Higher than
expected
2.67
B. Results
1.80
C. Assignments
0.76-1.50
Getting close
The Board of Directors has performance that
is close to the defined standard.
1.51-2.25
Compliant
2.26-3.00
Exceeds
The Board of Directors has performed as
expected in relation to the defined standard.
The Board of Directors has performance above
expectations compared to the defined standard
Inspiring
communication
Creation of a
strong team
Understand how the
business can
generate revenue
Time management
Valuing organizational
culture
Final Concept of
Competencies
Final Concept of Competencies:
2.42 - Higher than expected
0.00-0.75
The Board of Directors has
performance well below the
defined standard.
0.76-1.50
The Board of Directors has
performance that is close to
the defined standard.
1.51-2.25
The Board of Directors has
performed as expected in
relation to the defined standard.
2.26-3.00
The Board of Directors has
performance above expectations
compared to the defined standard.
2.41
2.23
2.44
2.52
2.50
2.42
0.00
0.75
1.50
2.25
3.00
Well
below
Getting
close
Compliant
Exceeds
Evaluation of Eletrobras' members and governing bodies
November 2018
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In addition, in 2018, for the first time, Eletrobras conducted a unified performance evaluation process
also for the directors nominated by Eletrobras companies in their Special Purpose Entities (SPEs).
Results
In 2018, the evaluation showed significant advances in Eletrobras’ practices, but also important future
improvements opportunities. The Board of Directors obtained a higher than expected concept in the
Competencies pillar, showing not only the quality of the collegiate but also the importance of the high
percentage of independent members.
In the Results pillar, the Board also exceeded expectations, with a view to overcoming a significant part of the
strategic objectives of the Eletrobras 5 Dimensions Program.
Adjusted Net Debt / EBITDA
Mitigation of Significant
Deficiencies
Control of Significant
Deficiencies
3
3
3
.
138%
2
4
2
.
Final Concept of Results:
2.67 - Higher than expected
0.00-0.75
The Board of Directors has performance well
below the defined standard.
2
9
0
.
8
0
.
115%
9
8
0
.
9
0
.
99%
0.76-1.50
The Board of Directors has performance that
is close to the defined standard.
3 - Exceeds
3 - Exceeds
2 - Achieved
0 - Does not achieve (target achieved below 80%)
1 – Partially reached (target achieved between 80% and 95%)
2 – Achieved (target achieved between 95% and 100%)
3 - Exceeds (target achieved over 100%)
Average 2.67
Evaluation of Eletrobras' members and governing bodies
Result
Goal
% Goal achievement
1.51-2.25
The Board of Directors has performed as expected
in relation to the defined standard.
2.26-3.00
The Board of Directors has performance above
expectations compared to the defined standard.
November 2018
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GRI CONTENT INDEX
Finally, in the Assignments pillar, Eletrobras Board of Directors obtained a concept “within the
expected”, showing opportunities for improvement especially in the fields of people management,
capital structure and strategy.
Strategy
Capital structure, mergers
and acquisitions
Independent risk management,
internal controls and auditing
People management
1.13
Stakeholder engagement and
code of conduct compliance
Good corporate governance practices
Overall performance
Final Concept of Assignments
1.79
1.63
2.08
2.00
2.13
1.88
1.80
Final Concept of Assignments :
1.80 - As expected
0.00-0.75
The Board of Directors has performance well
below the defined standard.
0.76-1.50
The Board of Directors has performance that
is close to the defined standard.
1.51-2.25
The Board of Directors has performed as expected
in relation to the defined standard.
2.26-3.00
The Board of Directors has performance above
expectations compared to the defined standard.
0.00
0.75
1.50
2.25
3.00
Well
below
Getting
close
Compliant
Exceeds
Evaluation of Eletrobras' members and governing bodies
Eletrobras understands that the above diagnosis is relevant to the improvement process of the
company’s governance practices and shares the view of the evaluators that there is room for
significant improvements in the coming years.
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Development
of the Board of Directors are not paid any
additional compensation as consideration for their
Since 2017, we have the Eletrobras’ directors and
board committees and/or advisory commissions’
officers Improvement Program, with educational
duties, except the Audit Committee members, who
actions to promote, in all Eletrobras Companies,
may have a different compensation depending on
the development of Board of Directors,
Supervisory Board members and officers
consistently and continuously.
The program consists of lecture, annual
the workload.
Executive Board: The monthly remuneration
of the Executive Board is determined at the
Shareholders’ General Meeting, following the
conferences, face-to-face and online courses and,
guidelines of the Department of Coordination and
in 2018, developed six lectures and improvement
Governance of State-run Companies (Sest).
workshops for Eletrobras directors and officers
on governance, integrity, capital markets, internal
The annual compensation of the Eletrobras CEO
controls and the Code of Ethical Conduct and
in 2018 was R$ 688,530.96 (including the amount
Integrity. In all, there were 272 participations in
received as a Board of Directors member) and for
927 classroom hours.
Compensation
the other Officers was R$ 598,350.84.
In the same year, for Eletrobras workforce, the
median of the total annual fixed remuneration was
Board of Directors and Supervisory Board:
R$ 142,273.62.
according to the legislation establishes that the
compensation of the members of these bodies
Thus, the ratio between the annual compensation
of the federal state-run and mixed investment
of the CEO and the median of employees was 4.84.
companies shall not exceed 10% of the average
monthly remuneration of the directors. Members
Ethos Institute lecture on Women’s Day. Eletrobras holding /
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VISION OF THE FUTURE
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MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
The table below summarizes the annual amounts paid to the
2019 GOALS
different corporate governance bodies of Eletrobras.
Compensation (R$)
2018
2017
2016
Board of Directors
588,596.49
661,975.71
673,081.19
Supervisory Board
382,649.66
393,229.11
405,633.14
Executive Board
6,948,244.60
8,323,204.63
7,814,294.60
Audit Committee and Risks
901,556.04
-
-
Values according to Management Proposal 59ª AGO in 2019.
Category
Strategic cornerstone
of the 2019-2023
PDNG
Indicator
Profitable growth
Strategic Alignment Index – IAE
(CMDE)
Financial Discipline
Adjusted Net Income
Corporate (the
company as a
whole)
Operational Excellence
Personnel, Material, Services
and Other (PMSO) / Adjusted Net
Operating Revenue
Profitable growth
% of Investments Made in PDNG
The Annual Variable Remuneration Program (RVA) can add up to
4.5 compensation and is structured based on goals for performance
indicators agreed between the Board of Directors and the Executive
Board of each of the Eletrobras companies.
The indicators are linked to the PDNG, in addition to the performance
evaluation indicators of the Executive Board, Sest Compliance
Indicator and indicator linked to the business units (projects assigned
to each board), ensuring leadership alignment with the with the
business value creation strategy.
The AVR is paid in five years: - 50% in the first year, 20% in the second
year, 10% in the 3rd , 4th and 5th years -, and the payments for the
2nd to 5th year conditioned to the result (net profit), reinforcing
the commitment to corporate sustainability and the generation of
perennial value.
Sustainable Operation
GHG emissions from the use of fossil
fuels in the vehicle fleet or GHG
emissions from TPPs for net energy
generated by TPPs or Total GHG
emissions on Net Operating Revenue
Governance and
Corporate Integrity
Enhancement
Governance and
Corporate Integrity
Enhancement
Board of Directors Evaluation
Sest Compliance Indicator
(Compliance with regulatory
deadlines)
Operational Excellence
Project Success Index by Board
Collegiate
Business unit
(*) (specific
indicators for
each Board)
(*) Each of the boards is responsible for one of the strategic projects of the PDNG
2019-2023 and monitors its execution. The goal is achieved when the project is
developed within the expected timeframe, taking into account the strategic goals.
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RISK MANAGEMENT
GRI 102-11; 102-15; 102-29; 102-30; 102-31; 102-37; 103-1; 103-2; 103-3; 201-2; 205-2
The risk management process
implemented in Eletrobras companies is
integrated - coordinated by the holding
company and governed by a single
corporate policy - and its main focus is
to reduce the occurrence of events that
may negatively impact, in a relevant and
permanent way, our strategic goals.
RISK MANAGEMENT MODEL
Based on best international management practices: coso 2013 methodologies
(committee of sponsoring organizations) and iso 31000:2018
Identification
Recognition and description
of the risks that the company
is or may be exposed to
Our risk management is guided by the
precautionary principle, seeking to
anticipate and avoid negative impacts
or be prepared to act if the identified
risks materialize.
Monitoring
Supervision of the
implementation
and effectiveness
of the selected
action plans for
risk management
Communication
Clear and objective
reporting of all stages
and results of risk
management to all
stakeholders involved
in the process.
Evaluation
Qualitative and
quantitative
analyzes to define
the company's
vulnerability to
identified risks and
their prioritization
Treatment
Decision whether to accept, avoid,
mitigate or transfer the risks that the
company is vulnerable
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Responsabilities
Management process
conduction: conducted by the risk
management departments and by
the risk committees of each of the
subsidiaries, with general guidance
from the Risk Committee of the
holding company.
Assessment of results: in early
2018 a Statutory Audit and Risk
Committee was created, which
receives quarterly reports from the
Corporate Risk Management area
and brings the Board of Directors
The most relevant results of
the risk analysis are published
in documents such as the 20-F
Form and the Reference Form.
We present below the main
analyzed risks and more detail
is available at the Company’s
investor relations website.
Main risks analyzed
Risk prioritization is performed based
on the risk appetite defined by top
management and considers topics
related to sustainability in the analyzes
to determine the company’s exposure
Brazilian Institute of Corporate
Governance (IBGC) and the
Organization for Economic
Cooperation and Development
(OECD). Failure to comply
with these requirements and
standards can generate negative
to the risks identified. Learn below the
impacts for the company.
main risks analyzed.
By 2019, we intend to implement
a program for risk and control
Compliance
analyzes systematization,
which should include a review
Scenario
Risk management and
mitigation
Since 2016, we rely on the
Compliance Program, which
of the risk matrix, its factors
As a publicly-held government-
gives greater strength and
and impacts, as well as the
controlled company listed on the São
maturity to compliance
improvement in its monitoring
Paulo Stock Exchange (B3 – Brasil,
processes in Eletrobras
process even closer. Through the
indicators.
Audit and Risk committee, the
Board of Directors periodically
resolves on the strategic issues
related to the risk management
process, such as the Company’s
level of appetite for risk, its
tolerance ranges, the role of the
Board of Executive Officers in
managing risks and the policy that
should guide the whole process.
Bolsa, Balcão), the New York Stock
companies and is part of the
Exchange (NYSE) and the Madrid
Stock Exchange (Latibex), we are
2019-2023 Business and
Management Master Plan
subject to legislations such as
(PDNG), monthly monitored by
compliance laws, transparency and
the Board of Executive Officers.
anti-corruption, as well as the rules
More detail on the program is
and guidelines of bodies such as the
available on page 82.
Securities and Exchange Commission
(SEC), the Brazilian Securities and
Exchange Commission (CVM), the
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Management of SPEs and consortia
• Pre-constitution of the SPEs, such as the
Scenario
We carry out some generation and
transmission activities through SPEs and
preliminary integrated assessment of the
business, the partner selection process based on
pre-defined premises and the evaluation of the
conditions for participation in auctions; and
consortia in which the holding company or its
• Post-constitution of the SPEs, such as dividend
companies participate, specifically created
to bid in auctions. Therefore, our ability to
meet financial obligations is linked to the
cash flow and revenues from these SPEs and
consortia. Due to the country’s challenging
macroeconomic situation, the operating and
financial results of subsidiaries and SPEs may
negatively affect the results of the group as a
whole.
management and financial contributions,
business plan updates, as well as monitoring
of the financial statements and of the
implementation and operation of projects.
In addition, the SPEs manual provides guidelines to
support project analysis, considering the dynamics
of the process in the generation and transmission
areas, including social and environmental issues.
Risk management and mitigation
Cash flow
In order to standardize the management of
SPEs and mitigate operational and financial
Scenario
risks, the holding company developed the
Law 12,783/13 establishes that companies are only
“Eletrobras Companies SPEs Manual”, with
responsible for the operation and maintenance
guidelines for the construction of a uniform
of the generation assets under their concession,
corporate governance model, which is being
which has led to a significant reduction of their
replicated in all subsidiaries, establishing
revenues, the need for greater leverage and the
activities to control and mitigate risks related
worsening of their risk perception.
to the:
Maintenance in transmission tower. Eletrobras Chesf
/ Severino Silva collection
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Since 2016, with the preparation of
the 2017-2021 PDNG, management
has been showing increasing concern
about the Company’s financial
solvency, prioritizing projects that
address the economic-financial
balance and operational performance
improvement, basically by reducing
costs and restructuring and
enhancing organizational processes.
Risk management and mitigation
With the strategic guidance and
goals related to financial discipline
in the 2017-2021 PDNG, which
were reviewed and reinforced
in the 2018-2022 PDNG and
the 2019-2023 PDNG, we have
already achieved some positive
results, such as the reduction
of the debt ratio (see more on
page 8), the development of
relevant projects, such as the
Extraordinary Retirement Plan (see
more on page 96), the beginning
of the implementation of the
Shared Services Center and the
standardization of the integrated
corporate management system
(corporate ERP).
Learn more about the results of
the 2018-2022 PDNG and the new
commitments of the 2019-2023
PDNG on page 27 to 35.
Nuclear power plant Angra 2. Eletrobras Eletronuclear collection
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Licensing and social and environmental management
related to this topic. Thus, Eletrobras and its subsidiaries already carry
Risk scenario
out, for the most part, a more comprehensive environmental auditing
processes, which aim to include criteria beyond those already required by
Non-compliance with specific social and environmental legislation may
the supervisory bodies in obtaining permits. Also in this sense, the group
impact electric power generation and transmission companies.
companies began the definition and implementation of their respective
Risk management and mitigation
environmental management systems and Eletrobras Eletronorte, Furnas
and Chesf are certified by ISO 140001 in the scope of some of their
Regarding the Company’s social management approach, the indigenous
operations.
issue stands out as one of the most striking issues. To mitigate its negative
impacts, since 2016 the topic is included in the Eletrobras Companies Social
Responsibility Policy. The topic was also included in the Environmental
Policy review, approved by the Environment Committee of Eletrobras
Companies in 2018 and approved by the Executive Board in 2019, including
a set of specific guidelines to address the indigenous issue. Eletrobras
companies have been developing actions, in partnership with the
Indigenous National Foundation (Funai). Learn more on page 152.
From an environmental management point of view, Eletrobras companies
have implemented environmental management systems with tested and
formalized standards and procedures, including the pre-operational and
operational stages of generation and transmission projects, in order to
verify Eletrobras exposure to the environmental risks and the effectiveness
level of the planned and implemented actions. This analysis includes the
assessment of risks related to environmental controls, biodiversity and
physical environment, accidents and environmental licensing. It is also
worth mentioning that Eletrobras companies have a unique Corporate
Environmental Policy, which defines the guidelines for handling issues
HPP Funil. Eletrobras Furnas collection
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GRI CONTENT INDEX
Climate Change Risk
Risk scenario
•
Ensure to raise awareness on the social and economic effects of climate
change; and
•
Ensure the monitoring of the development of the National Policy on Climate
Currently, climate change risk is the main focus of several world
Change or other related policies and regulations, such as the carbon credit
forums, being constantly discussed and analyzed, and giving
market.
rise to a greater movement of implementation of measures to
prevent, mitigate, adapt and/or offset impacts, as well as the
report its results to the market.
Risk management and mitigation
Based on this scenario, the assessment of the “climate change”
risk seeks to determine how we can be impacted, foreseeing
actions to readapt operations, as well as repairs and mitigate
damages.
Therefore, it is important that Eletrobras companies can ensure
the execution of control activities, such as:
• Address climate change issues in its activities;
• Know its vulnerabilities related to climate change;
•
Ensure that a set of measures are implemented to adapt
electric power generation and transmission systems to the
Since the first analyses of the issue,
we have been managing the climate
change risk and dealing with all its
aspects through the Working Group
on Climate Strategy, which has been
developing a pilot study to be used as
foundation to the future elaboration of
a strategy to adapt to climate change in
Eletrobras companies.
climate change effects;
In 2018, the Task Force on Adaptation to Climate Change developed a diagnosis
• Check if service providers or suppliers operate in areas
of risks and opportunities related to climate change in Eletrobras companies,
susceptible to climate change effects and/or act in
with the mapping and prioritization of the risks and climatic opportunities that
disagreement with the legislation and standards in force on
apply to the organization, based on a perception survey from different areas and
the subject;
companies that make up the Eletrobras System.
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Operating risks – Nuclear power
generation
Risk scenario
Because it involves the use of radioactive
materials, nuclear power generation activity may
cause many negative social and environmental
impacts in case of accidents or incidents during
the life cycle of the projects. However, in 30 years
of operation, the Angra nuclear power plants have
never had an accident or event that would put at
risk its employees, the surrounding population or
the local fauna, flora and ecosystems. According
to the Brazilian law and the Vienna Convention,
damages in the event of an accident are the
Company’s strict liability.
Risk management and mitigation
All activities involving the nuclear power
generation process are extremely controlled,
with the supervision of national and international
institutions. In this context, Angra 1 and 2 plants
operate under the supervision of the National
Nuclear Energy Commission (CNEN) and are
subject to periodic inspections by international
agencies, such as the International Atomic Energy
Agency and the World Association of Nuclear
Safety is a commitment that is
crystallized in Eletrobras Eletronuclear’s
Integrated Management Policy. It is a
priority and comes before productivity
and savings and should never be
compromised for any reason.
Operators. The Company is also involved in the
Protection System for the Brazilian Nuclear
Program (Sipron) and participates in the general
activities program every year, which includes,
among other initiatives, courses and seminars,
as well as emergency response training or
facility safety exercises.
Although the Angra nuclear power plants
are considered solid and have an annual
budget for safety activities, following the
Fukushima accident in Japan in 2011, the
Company developed the “Fukushima Response
Plan”, comprising 30 studies, 28 projects and
investments of approximately R$ 300 million.
Eletrobras Eletronuclear Fukushima
Response Plan
Created in 2011, it guides Eletrobras
Eletronuclear’s studies and projects
to reassess the safety of Almirante
Álvaro Alberto Nuclear Power Plant
(CNAAA) regarding the lessons learned
from the accident at the Fukushima
Daiichi Central in Japan in March
2011. The intention is to prevent
internal or external events, considered
in the project bases or that exceed
these bases, that could jeopardize
the facilities’ safety, in line with the
Integrated Security Policy, in which the
company expresses its commitment
to generate energy with high safety
standards, reliability and socio-
environmental responsibility. The
initiatives are scheduled to run until
2022 and the Implementation Follow-
up Report is issued every six months.
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Operating risks – Hydropower generation
Risk scenario
Currently, the most important risk related to this
type of activity is the hydrological risk, which
consists of maintaining a systemic production
level below the physical guarantee of the plants
that are part of the regulated energy market.
This risk is higher when the occurrence of water
shortages and has negative impacts on results.
Risk management and mitigation
We seek to mitigate this risk through the
renegotiation of the hydrological risk, a
measure established by law in 2015, limiting the
generators’ losses during periods of shortage
and extraordinary gains in periods of a more
favorable flow. We also carry out the “Energy
Hedge” in the amounts that are not covered by
the renegotiation, that is, electricity available for
sale in case of severe droughts so the Company’s
power production is not completely contracted.
HPP Passo São João. Eletrobras Eletrosul collection
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DAM safety
G4-EU21
Eletrobras maintains a firm commitment to the
safety of the dams used for power generation in
its projects, which by their very nature present
completely different technical characteristics
of design, construction and operation from the
tailings dams.
It is important to note that Brazil has a specific
legal and regulatory framework for this type
of structure, such as Law 12,334 / 10, which
establishes the National Policy on Dams Safety,
and Aneel Resolution 696/15, which establishes
criteria for classification , formulation of the
Safety Plan and implementation of the Periodic
Safety Review in dams inspected by Aneel.
Compliance with current legislation includes the
mandatory creation of the Dams Safety Plan
(PSB) and the Emergency Response Plan (PAE),
which is an internalized practice by Eletrobras
companies for all their dams.
Our companies also carry out regular
inspections and periodically improve the safety
criteria of all their dams and dikes, which are
constantly monitored in order to minimize
the risks to the population and guarantee the
operational safety of their projects.
All relevant information on the subject is
submitted to Aneel, which at its discretion
supervises the projects, through on-site
inspections, among other methods.
In keeping with its commitment to provide good
services to the population, Eletrobras companies
always adopt the best practices related to
the safety of dams in energy generation
and, therefore, are seen as a national and
international reference in this area, highlighting
Eletrobras companies’ crucial role in the creation
of the National Policy for Dams Safety.
In addition, Eletrobras companies actively
participate in technical discussions involving
dams safety, with a view to ensuring the integrity
of their power generation plants.
They also maintain important non-
governmental organizations working
in this area, such as the Brazilian
Committee on Dams (CBDB) and the
International Commission on Large
Dams (ICOLD).
All these facts underscore the
importance of the theme for Eletrobras
companies, highlighting the historical
commitment to good service delivery
to the population, supported by a
corporate culture increasingly focused
on designing, building and operating
dams to generate electricity in a
safe manner, responsible from the
socio-environmental point of view,
thus contributing to the Brazil’s
development.
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BUSINESS INTEGRITY
GRI 102-16; 102-17; 102-21; 102-29; 102-33; 102-34; 103-1; 103-2; 103-3; 205-1; 205-2; 205-3
Evolution
Improving governance and corporate integrity is
In addition, over the last four years we have been
one of the guidelines of our strategic planning,
continuously working to intensify and advance
which underscores the importance of the theme
our ethics and corporate integrity management
for the company.
through the Compliance Department, which is
responsible for the Integrity Program of Eletrobras
We are committed to ethics and the fight against
Companies and for a solid institutional and
corruption and fraud in order to mitigate risks and
regulatory framework.
correct nonconformities, in order to guarantee
the sustainability of Eletrobras companies and the
These instruments establish the companies and
confidence of our shareholders and society.
their employees’ principles, guidelines, standards
Every year, the Ethics Committees of the
with our public, and identify, mitigate and deal
Eletrobras Companies participate in the National
with transgression cases. In addition, annually the
Forum on Ethics Management in State-Owned
Company’s Internal Audit verifies the adherence
Companies, which fosters study groups, promotes
and compliance of the Integrity Program.
and commitments of conduct in their relations
the achievement of certifications and seals and
holds an annual Seminar, open to all employees of
the participating companies, renowned professors,
governmental authorities and the general public.
Main policies and standards for the
promotion of corporate integrity:
- Code of Ethical Conduct and
Integrity: https://bit.ly/2UbFopw
- Manual of the Anti-Corruption
Program at Eletrobras Companies:
https://bit.ly/2tKHWix
- Anticorruption Policy of Eletrobras
Companies: https://bit.ly/2Ek4v2t
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Integrity Program
The Eletrobras 5 Dimensions Integrity Program relies on the continuous involvement of the
holding company’s Board of Executive Officers and Board of Directors, and covers all Eletrobras
companies, through the Compliance Committee (CDC), which is composed of the companies’
compliance managers.
The program is aimed at strengthening the integrity practices of processes, routines and
conduct, for the development of a culture of integrity in companies through five dimensions:
1 Development of the
management environment
of the Integrity Program
2 Periodic risk
analysis
Continuing our work started in 2017 (learn
more on page 48 of our Annual Report 2017:
http://bit.ly/2QK86Np), in 2018 one of
the main advances of the program was the
consolidation of the integrity management
process with suppliers.
We implemented the new Bidding Procedures
and Contracts Regulation, which adapts
Eletrobras companies’ contracting rules to
that established in Law 13,303/2015 (State-
Owned Companies Act) and provides for
the assessment of the supplier’s corporate
integrity, from the contracting process to
the monitoring during the execution of the
contract.
5 Program
monitoring, mitigating
measures and
penalties application
3 Structuring and
implementation of
the Integrity Program
policies and procedures
4 Communication and training
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We also consolidated the monitoring of suppliers identified in the
Eletrobras companies identified their most critical suppliers
initial due diligence process as high or very high risk of integrity.
regarding the integrity aspect and that should be monitored. For this
In these cases, we now have a monitoring plan to know and follow
critical group of suppliers 351 integrity due diligence forms were
supplier integrity practices and mitigate possible risks. In addition, we
applied. Learn more about the process on page 146. In addition,
have established integrity assessment for other relevant audiences
90.4% of the critical suppliers (338) undertook training in Policies
regarding the integrity aspect, such as those involved in sponsorship,
and Anti-Corruption practices.
partnerships, donations and agreements and for Eletrobras Corporate
Governance members. For all these cases, the analysis is performed
before establishing the relationship with Eletrobras companies.
Program communication
The Integrity Mechanisms for Third Parties project
seeks to assess the third party integrity (suppliers,
partners, grantees and sponsors), before beginning the
relation with Eletrobras, by identifying and classifying
the risk of fraud and corruption, as well as monitoring
the third party in order to mitigate the risk.
Eletrobras was the winner of the Business Ethics Award
in 2018.
We disseminated the Eletrobras 5 Dimensions Program through
communications initiatives and training sessions tailored to each
type of stakeholder, in all our companies. Among the initiatives, we
highlight news broadcast via intranet, as well as lectures and videos
with professionals from the Compliance Department.
We also consolidated the Integrity and Ethical Culture Week, which
in its fifth edition featured lectures from internal and external
experts on governance, risk and compliance, moral harassment,
management and treatment of complaints, information security,
social media and relationship with the public sector, among other
topics related to the Eletrobras 5 Dimensions Integrity Program. At
the time, an institutional campaign was launched, both internal and
external, highlighting the advances of the Integrity Program, with
emphasis on promoting ethical culture.
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Other important educational actions carried out in 2018, focusing
on specific audiences, were the Integrated Governance, Risk and
Compliance (GRC) Course, which trained professionals from the
Integrity teams and related areas of the Eletrobras companies and
promoted an integrated performance between the 2nd and 3rd
defense lines and the Fraud and Corruption Risk Course at Eletrobras
Companies, which trained managers on the subject and clarified the
corruption risk mapping and managing process.
Anti-corruption awareness initiatives
in 2018
Number of participants
Governance agents
Employees
Management level
Higher education level
Primary and secondary level
Business partners
82%
97%
99%
99%
96%
44%
Anti-corruption training initiatives
Number of participants
Governance agents
Employees
Management level
Higher education level
Primary and secondary level
66%
88%
88%
92%
86%
The communication and training indexes on ethics and
anti-corruption among employees have evolved. In
2017, 82% were trained and 90% were communicated.
By 2018, the levels had increased to 88% and 97%,
respectively.
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Complaints
GRI 406-1
Contact: we make available to all our audiences a unified
Whistleblower Channel that can be accessed by anyone, managed by
an external and independent company, with a guarantee of secrecy,
anonymity and confidentiality: http://bit.ly/2WZwMnc. The channel
is available in Portuguese, English and Spanish every day, 24 hours a
day. In addition to the Whistleblower Channel, all Eletrobras companies
have ombudsmen, bodies attached to the Boards of Directors, which
can also receive complaints in person.
We also guarantee non-retaliation, as determined in the Code of
Ethical Conduct and Integrity and Consequence Policy.
Investigation: the integrity management and complaint handling,
In 2019, quarterly presentations of the Ombudsman’s
Office are planned in the thematic agenda of the
Board of Directors. Since 2015, the Supervisory Board
and the Statutory Audit Committee are informed on
a monthly basis of information on complaints and
other types of reports that may generate risks or
opportunities for process improvement.
investigation process is guided by internal normative documents,
Follow-up: the whistleblower channel allows the whistleblower to
procedures and unified departments. The Consequences Policy
monitor the progress of his/her report through an individual protocol
establishes corporate commitments to combat corruption,
and password, providing transparency to the process and ensuring the
anticompetitive practices, conflicts of interest and other infractions,
care and verification of all contacts received.
and guides the application of consequences to actions and conduct
in disagreement with the Code of Ethical Conduct and Integrity of
Eletrobras Companies, with the Eletrobras Integrity Program and with
the internal and legal norms.
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COMPLAINTS IN 2018:
Internal investigation and audit
CENTRALIZED WHISTLEBLOWER CHANNEL
OF ELETROBRAS COMPANIES
501 complaints:
101 (20%) were considered to be out of scope and
400 (80%) were considered valid complaints
Of the total number of valid reports, 147 (37%) were
concluded (went through all the accountability and
mitigation decision steps).
Infractions to the Integrity Program (fraud and
corruption)
79 complaints in 2018, of which 42 were concluded, 3
being valid and 1 partially valid, which went through
accountability and mitigation measures.
In addition to strengthening compliance and integrity management, as previously
mentioned, 2018 brought an important event: the conclusion of pending issues
with US regulators and the closure of investigations before those authorities.
Considering the scenario in which some Eletrobras companies were cited in the
scope of Operation Lava Jato (investigation conducted by the Federal Police and
by the Federal Public Ministry) and the risk of violation to the Integrity Program, in
2015 we started an independent investigation procedure, through the hiring of the
US law firm Hogan Lovells, to assess the existence of irregularities.
The investigation was organized around the Brazilian legislation and the Code of
Ethics and Conduct of Eletrobras Companies, and followed the principles of the
Securities and Exchange Commission (SEC), the Department of Justice (DOJ) and the
U.S. Securities and Exchange Act and Foreign Corrupt Practices Act (FCPA), which
govern the U.S. capital market, as we have been liable for trading our American
OMBUDSMAN OF ELETROBRAS COMPANIES
Deposit Receipts (ADRs) on the New York Stock Exchange since 2008.
4,241 reports, of which 501 were complaints filed in
Centralized Whistleblower Channel.
Of the total number of reports, 93% were concluded and
7% were ongoing at the end of the period.
Corruption
11 complaints in 2018, all of them being analyzed.
Discrimination
6 complaints in 2018, all of them being analyzed.
The Radioactivity and Pripyat operations, conducted in 2016 as part of the
Lava Jato Operation, resulted in the sentencing of three former executives of
Eletronuclear in 2017. The independent investigation identified contracts in which
irregularities could have occurred, and they were duly assessed and the respective
corrective measures adopted – whether suspension or cancellation. Administrative
measures were also taken in relation to employees and directors involved in the
activities identified by the independent investigation, adopting, when applicable,
the respective disciplinary procedures.
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Since the beginning of the investigations,
On August 13, 2018, the Department of
It is important to note that the favorable
Eletrobras has been cooperating with the
Justice (DOJ) declined to sue Eletrobras for
resolution with the US authorities was also
authorities: we terminated the suspects in
issues involving the US anti-corruption law,
only possible due to the quantitative extension
2016, shared information gathered by the
not establishing any contingency or condition
and quality of the self-investigation procedure
independent investigation even assisting the
and without determining the indication of a
that was submitted to Eletrobras, with Hogan
prosecutors in these criminal proceedings.
monitor.
Lovells leadership. There were more than 448
thousand terabytes of data collected, and more
On April 30, 2018, the independent
On December 26, 2018, the SEC accepted
than 49 thousand terabytes of data processed;
investigative action initiated in 2015 by the
the agreement proposed by Eletrobras to
871 computers, 1,795 seized electronic devices;
Hogan Lovells law office, after denunciations
cease and desist from suing the company
654 background checks carried out in almost
from Operation Lava Jato, was terminated.
for violation of the Foreign Corrupt Practices
three years of research. This included all
As of this date, all new matters related to the
Act (FCPA). The agreement did not represent
Eletrobras subsidiaries and SPEs where relevant
topic are conducted internally by Eletrobras
recognition of an illegal act by Eletrobras.
investments were made. Based on the findings
itself, through its Compliance Department.
In order to enter into this agreement, the
of the independent investigation, Eletrobras has
To this end, the company has been adopting
SEC imposed a US$ 2.5 million penalty for
adopted the pertinent administrative measures,
the necessary measures to enable a
violation of the FCPA’s books, accounting
such as suspension of contracts, removal and
dedicated structure, with the improvement
records and internal controls, which was
dismissal of employees and directors involved, as
of the management and treatment process
mitigated by measures to remedy the
well as negotiations for compensation of losses.
of complaints coordinated by the Integrity
material weaknesses in internal controls
System Committee (CSI), created in 2017,
adopted by the company, the evolution of the
Also, on May 2, 2018, Eletrobras signed a
along with the contracting of an external
compliance program and other anticorruption
Memorandum of Understanding to enter into an
Whistleblower Channel , as well as the
procedures, as well as its cooperative position
agreement with respect to the class action lawsuit
training of its employees to investigate
adopted in the course of the investigation.
based on the US securities legislation filed against
allegations of corruption.
the company in the United States District Court
for the Southern District of New York (SDNY).
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The agreement was intended to terminate
As for the compensation measures, the company
all pending lawsuits initiated by investors
and its subsidiaries, Eletrobras Furnas, Chesf and
who acquired Eletrobras common and
Eletronorte, adhered to the leniency agreement
preferred shares, represented by American
signed between CGU and Odebrecht at the end of
Depository Shares (ADS), during the period
2018, which represents an opportunity to recover
alleged in the lawsuit, and became final in
part of the losses caused to the mentioned
January 2019. The agreement comprised
companies, under the corruption scheme revealed
the payment of US$ 14.75 million to class
by Operation Lava Jato. The leniency agreement
action members. The agreement does not
with Odebrecht amounted to R$ 162 million to
represent recognition of an illegal act or
be paid to Eletrobras and its subsidiaries over a
fault by Eletrobras. The company denies
period of 21 years, updated by Selic.
the allegations and accusations made by
plaintiffs in the course of the action but
Eletrobras evaluates other measures to
opted for the agreement to minimize the risks
compensate for damages caused to Eletrobras
and costs of a lawsuit.
companies as a result of illegal acts of which it
was a victim.
With these resolutions, there are no more
pending issues with Eletrobras to be resolved
with U.S. regulators, and the independent
investigation in the context of the Lava Jato
operation is definitely closed. However, even
after the end of the investigative action,
Eletrobras continues to monitor the ongoing
developments of the Lava Jato operation,
as well as the news involving Eletrobras
companies and their SPEs, regarding
corruption acts, so that it can adopt remedial
measures if necessary.
TL Furnas. Eletrobras Furnas collection
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Conflict of interests
GRI 102-25
Legislation
Eletrobras is subject to Law 12,813 / 2013, which provides the
performance of public agents in relation to conflicts of interest and
determines conflict-generating situations, the rules to be followed and
the public agencies and tools for conflicts’ monitoring and evaluation.
In our case, as a mixed-economy company, in addition to employees,
executive directors, as public agents subject to the law (including those
High voltage laboratory. Eletrobras Cepel / Jorge Luíz da Fonseca collection
who are in the period of leave), are required to inform the company
about:
• their financial position;
• their equity interests;
• their professional activities or possible acceptance of contracts or
business in the private sector and potential conflicts of interest; and
• the existence of a spouse or relative by consanguinity or affinity in
activities that may generate a conflict of interest.
As provided by law, in addition to the Public Ethics Committee, the
Federal Comptroller’s Office (CGU) also acts in the supervision and
evaluation of conflict of interest situations.
Our rules and policies
Board of Directors
The Company’s Bylaws determine the conflict of interests situations in
which members must register the conflict in minutes and abstain from
discussing and voting. The Board of Directors should also monitor and
manage potential conflicts of interest of executives, board members and
shareholders, in order to avoid the misuse of the Company’s assets and,
especially, improper transactions between related parties.
The board member elected by employees does not participate in discussions
and resolutions on matters that constitute a conflict of interest: union
relations, compensation, benefits and advantages, including matters
related to complementary welfare and assistance funds.
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Board of Executive Officers
Other employees
In order to avoid possible conflicts and
A consultation system, integrated to the
the misuse of confidential and strategic
Personnel Management department and
information, the CEO and the executive
the Ethics Committee, is available to all
officers may not hold management,
employees through the email address:
administrative or consulting positions in
conflitodeinteresses@eletrobras.com For
electric power public utility companies or
those who wish to make formal inquiries
private companies which are linked or not
about conduct in situations of possible
to the electric power sector.
conflict of interest.
The exception are for subsidiaries,
The Comptroller General of the Union
special purpose entities and state-owned
(CGU) created the Electronic System for the
concessionaires, in which Eletrobras has
Prevention of Conflict of Interest (SeCI), which
an equity interest, where they may be
can be accessed by all government bodies and
members of the Board of Directors and
is available to all employees via the Company’s
the Fiscal Council. In this cases, they
intranet or on the CGU website.
must comply with the provisions of Law
No. 9,292, which regulates compensation
and establishes the limit of only two
compensations from public companies.
In 2018, the Board of Directors approved the
Negotiation Policy between Related Parties
of Eletrobras Companies, with the objectives
of establishing the principles guiding the
execution of these transactions, safeguarding
the Eletrobras and its shareholders interests,
while regulating the transfer of information
needed to comply with capital market
legislation.
TPP Mauá 3. Eletrobras Amazonas GT / Alessandro Nunes collection
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OPERATION
Generation
G4-EU1 ; G4-EU10
Installed capacity
INCREASE IN INSTALLED CAPACITY (MW)
Average growth of 1,363 MW per year
4
2
6
1
4
,
5
6
2
1
4
,
8
3
9
0
4
,
2
2
1
0
4
,
6
9
7
9
3
,
7
1
6
9
3
,
Our installed generation capacity at the end of 2018 was 49,801 MW,
which represents 30.5% of the 163,441 MW installed in Brazil. We have
expanded this capacity, on an average 1,363 MW per year, in the last six
years, in terms of installed capacity, especially via SPEs.
3
6
3
1
,
1
9
8
2
,
3
5
4
4
,
4
3
7
6
,
8
3
3
8
,
4
8
1
0
1
,
Of this total, 31% (15,452 MW) are from Corporate Power Plants, 26%
2013
2014
2015
2016
2017
2018
(13,090 MW) Corporate Power Plants under the O&M regime (Operation
Corporate, including under the O&M regime
and Maintenance), 5% (3,132 MW) Corporate Power Plants Renewed
SPEs
by Law 13,182/2015, 16% (7,943 MW) from Shared Ownership Power
Plants, 20% (9,781 MW) from Specific Purpose Entities (SPEs) and 1%
(403 MW) from Specific Purpose Companies under the O&M regime. If
we consider the total installed capacity of the plants in which we have
participation, this amount will be 69,436 MW.
In 2018, we sold 26 SPEs, achieving revenues of R$ 1.3 billion, of which
R$ 300.6 million were already received in 2018. Eletrobras has SPEs
remaining from the auction held in 2018, with a revenue projection of
R$ 1.8 billion in seven lots to be divested in 2019. These changes in our
corporate structure contribute to the financial discipline, essential for
the long-term business.
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Projects that were concluded in 2018 are: São
Strategic expansion planning
Manoel HPP (700 MW), HPP Anta (28 MW), Casa
Nova III wind farm (28.2 MW) and TPP Mauá 3
Our goal is to maintain our leadership position
(591 MW). Also noteworthy is the start-up of five
in the energy generation sector, prioritizing
generating units, each with 611 MW, from Belo
the completion of projects that are part of our
Monte HPP, reaching a total installed capacity of
portfolio. As a result, Eletrobras and its partners
7,566 MW by the end of 2018.
are expected to add about 6 GW of installed
capacity to the Brazilian energy matrix, reaching
In total, in 2018, there was an increase in the
a planned capacity of 53 GW until 2027, while
installed capacity of the Eletrobras System of 1,667
increasing the share in sources with low GHG
MW, adding about R$ 392,339.88 million to the
emissions.
company’s annual revenue.
Evolution in Eletrobras' capacity (MW)
Another key advance for the evolution in
% of sources with low greenhouse gas emissions
generation operation was the signing of the gas
contract to supply the plants of the subsidiary
Eletrobras Amazonas GT at a tariff approved by
Aneel and ANP that will allow a profitable and
positive operation.
In October 2018, a resolution of the CNPE
(National Energy Policy Council) recommended
adopting as Reference Price R$ 480.00/MWh
for the new Angra tariff. With this definition
and a possible international partnership, it is
sought to make possible to resume work at
Angra 3, to finish it and the plant may start
operations in 2026.
% of the Brazilian total
1
9
3
5
4
,
%
2
9
6
5
8
6
4
,
%
4
9
4
3
1
8
4
,
%
5
9
%
2
3
%
1
3
%
1
3
2015
2016
2017
In recent years, we have increased our
share in sources with low emission of
Greenhouse Gases (GHG) in our installed
capacity which, in 2018, represented
about 95.2% of the total, decisively
contributing to place the Brazilian
electrical matrix as one of the cleanest
and most renewable in the world.
% OF SOURCES WITH LOW GHG EMISSION
96
84
97
85
97
86
2018
2023
2027
Eletrobras System
SIN
According to the forecast of the Ten-
Year Energy Expansion Plan (PDE) 2018-
2027, one of the main tools for planning
country’s electro energetic expansion,
prepared by the Brazilian Energy Research
Agency (EPE) and by the MME, our
participation in relation to the country’s
total installed capacity tends to fall.
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EVOLUTION OF THE INSTALLED CAPACITY IN THE SIN
CAPACITY OF THE ELETROBRAS SYSTEM VS. TOTAL PLANNED CAPACITY (PDE 2027)
SOURCE
Brasil - SIN
(MW)
Eletrobras
System (MW)
Share (%)
Brasil - SIN
(MW)
Eletrobras
System (MW)
Share (%)
Brasil - SIN
(MW)
Eletrobras
System (MW)
Share (%)
Coal
Oil
Nuclear
Natural gas
Hydro
Wind
Biomass
Solar
Other
3,252
9,361
1,990
13,143
104,195
14,401
14,797
2,296
37
2018
350
302
1,990
1,247
44,221
1,186
-
1
-
11
3
100
9
42
8
-
0
-
3,420
5,198
1,990
17,898
109,226
18,672
14,463
4,639
1,305
2023
350
47
1,990
1,121
46,251
1,187
-
1
-
10
1
100
6
42
6
-
0
-
3,420
2,144
3,395
23,021
112,278
26,672
16,583
8,639
13,142
2027
350
23
3,395
1,121
46,247
1,187
-
1
-
10
1
100
5
41
4
-
0
-
49,297
163,442
TOTAL
Notes:
- Our capacity Includes the Brazilian half of Itaipu Binacional (7,000 MW) and, for jointly owned plants, the installed capacity considered was proportional to the ownership interest held
by the parties.
- It was considered the deactivation of some thermal plants in the coming years, as forecasted by Eletrobras Companies.
- Considering the installed capacity of the Eletrobras Companies plants that are part of the SIN, plus those that are part of the Isolated Systems (504 MW, being 15 MW from natural gas
source and 489 MW from oil source), the total installed capacity of Eletrobras Companies in 2018 corresponds to 49,801 MW.
209,294
176,811
52,323
50,946
30
29
25
We shut down 4 oil plants and 1 coal plant. As for renewable sources,
partners increased installed capacity by 4.4 GW with corporate projects and
we added 1 wind farm and 1 SHP. We reduced our coal generation by 6%
in SPEs, which represents 20% of the increase in the Brazilian Electric Matrix
and increased wind power by 8%.
in the period. The projected expansion of the country’s installed capacity
in 2019, of the Energy Expansion Plan (PDE 2027), is around 4.1 GW. For the
We have the goal of investing R$ 9.5 billion between 2015 and 2019
same period, Eletrobras and partners are expected to incorporate 2.2 GW of
in generation projects from clean sources. By the end of 2018 we had
installed capacity into the SIN, which represents about 54% of the expected
already invested R$ 16.3 billion. From 2015 to 2018, Eletrobras and its
expansion in 2019 of PDE 2027.
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In order to learn
about the Eletrobras
Companies power plant
map in operation in 2018
(by region and type of
power plant), in addition
to detailed information
on installed capacity (by
company and by type of
enterprise), access our
Management Report,
item 3.1, pages 14 to 16,
available at:
https://bit.ly/2vytHOX
Energy production
G4-EU2
In 2018, we generated 184,081 GWh, an increase of 1.1% over 2017.
The positive changes followed the same consumption growth of the country’s energy sector. The most significant positive
change was in Eletrobras Amazonas GT, due to the start-up of all HPP Mauá 3 generating plants.
Generation from renewable sources and low emission of Greenhouse Gases remained at the same high level as in the
previous year:
ENERGY GENERATED FROM RENEWABLE AND LOW GHG EMISSION SOURCES
Net Generation
by source (GWh)
Solar
Wind
Hydro
2015
2016
2017
2018
0
1
1
1
1,475
3,383
3,594
3,874
139,305
143,827
155,129
155,028
Natural Gas
4,170
3,448
3,674
5,516
Uranium
14,808
15,864
15,741
15,675
Coal
Oil
TOTAL
2,212
4,138
2,281
2,113
1,589
2,419
1,490
2,497
166,108
170,917
182,148
184,081
}
Continued growth of the energy generated from
renewable sources and with low GHG emission
87.1%
86.1%
86.1%
84.8%
2015
2016
2017
2018
The data presented consider corporate plants, shared ownership, Itaipu Binacional and Specific Purpose Entities (SPEs).
For details on the energy generated by company, access our Management Report, item 3.1, page 18, available at:
https://bit.ly/2vytHOX
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Availability
G4-EU11 / G4-EU30
The availability factor is the
indicator that is associated
with the time that a power
plant is available to generate
power with greater reliability
and continuity, that is,
fewer stops and duration
for planned and forced
maintenance.
For the SPEs, the availability
factor by wind and water
source was, in 2018,
respectively 96.48% and
97.11%. The data presented
consider corporate plants,
shared ownership and Itaipu
Binacional.
AVERAGE PLANT AVAILABILITY FACTOR BY ENERGY SOURCE (%)
Uranium
Solar
Oil
Hydro
Gas
Wind
Coal
90.0
92.0
90.4
99.2
98.9
99.3
99.4
94.2
94.9
96.7
76.2
56.1
84.8
73.5
85.4
98.1
96.9
98.8
52.0
49.8
68.1
2016
2017
2018
YEARLY AVERAGE GENERATION EFFICIENCY OF THERMAL PLANTS
BY ENERGY SOURCE (%)
Uranium
Oil
Natural
Gas
Coal
35.7
35.3
35.6
39.6
40.9
36.0
35.9
37.8
28.1
30.5
37.0
2016
2017
2018
91
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Transmission
Substations
In 2018, we added 189 km of transmission lines and
At the end of 2018, we had a
R$ 103 million to the company’s annual revenue.
transformation capacity of 254,782
Besides expanding operations, we intend to promote
Lines and substations profile
MVA, of which 91.3% (232,538 MVA)
the modernization and automation of facilities, with
Transmission lines
G4-EU4
through our corporate substations,
the deployment of teleassistance resources, to enable
and 8.7% (22,244 MVA) in SPEs. In a
remote operation to increase operational efficiency and
leveraged manner, that is, considering
reliability and reduce costs.
On December 31st, 2018, our
all the capacity of the SPEs in which we
transmission lines network totaled
have a stake, Eletrobras contributed
approximately 71,068 km. Of this total,
with 275,215 MVA in transformation
9.7% (6,919 km) are corporate, 79.6%
capacity.
(56,560 km) refer to corporate assets
under O&M agreements and 10.7%
Strategic expansion
(7,589 km) correspond to ownership
interest in SPEs.
Considering only the basic SIN grid,
that is, voltages of ± 800, 750, ±
600, 525/500, 345 and 230 kV, we
are responsible for 64,833 km of
transmission lines, about 47.3% of all
transmission lines in Brazil.
We are Latin America’s largest
transmitter; we have played a key
role in the interconnection of Brazil
in the last decades and in 2018 we
accounted for almost half (47.3%) of
the transmission lines above 230 kV in
the country.
EXPANSION OF TRANSMISSION LINE BY TYPE OF
PROJECT (KM)
Average growth of 1,341 km per year
2013
2014
2015
2016
2017
2018
3,794
5,440
6,028
6,629
7,851
7,589
60,570
62,142
62,409
63,572
63,833
63,479
SPEs
Corporate, including
under O&M regime
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2018
In the year, however, due to the
financial discipline guideline
established in the company’s
PDNG, the investments
were only directed towards
the completion of works
already contracted and the
energization of transmission
lines in its portfolio, as well
as SPEs sales initiatives, as
already mentioned. There
was no expansion through
new auctions. Despite this,
Eletrobras continues to be
the most relevant player in
the transmission industry,
maintaining its leadership.
Learn in detail the extent
of transmission lines and
substations per company
and regulatory regime in our
1960
Evolution of
Transmission Basic Grid
Eletrobras Companies TLs
Management Report, pages 21
Eletrobras Companies
TLs with partnership
Other Companies TLs
and 22, available at:
https://bit.ly/2vytHOX
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Quality and efficiency
G4-EU6
In order to monitor the quality and efficiency of the service provided, we track the robustness
indicator, which assesses the ability of the basic grid to withstand contingencies without
disruption of power supply to consumers, considering only disturbances originating from the
In 2018, the transmission lines availability rate,
transmission grid of Eletrobras Companies.
that is, the percentage of hours in the year
in which the lines remained available for the
The Eletrobras System has been maintaining the same performance from the latest years,
transmission system, totaled 99.46%, slight drop
with emphasis on the robustness for any power outing which had a considerable increase,
of 0.35 p.p. in relation to the previous year.
considering the smaller number of disturbances which caused power outings in 2018.
ROBUSTNESS INDICATOR OF THE ELETROBRAS SYSTEM (%)
TRANSMISSION LINES AVAILABILITY
RATE (%)
-0.23 p.p.
-0.35 p.p.
.
7
9
9
.
8
9
9
.
5
9
9
2018
2017
2016
2016
2017
2018
Power outing > 1000 MW
Power outing > 500 MW
Power outing > 100 MW
Any power outing
95.3
94.0
100
100
100
100
99.8
99.7
99.2
97.6
98.1
97.8
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Losses
G4-EU12
The transmission technical losses Index was 1.62%, improvement of
0.16 p.p. when compared to 2017. The electrical losses are due to the
grid topology and to the operating point of the system, both situations
beyond the control of the transmission companies. Therefore, changes to
the profile of the optimization of the electro-energetic operation of the
National Interconnected System (SIN) generate increases or reductions
of the losses that, in the current Brazilian regulatory model, have the
cost split between consumers and generators, without any charge to the
transmission company.
TECHNICAL LOSSES BY TRANSMISSION (%)
2016
2017
2018
2.02
1.78
1.62
Itaipu Binacional substation. Itaipu Binacional/Alexandre Marchetti collection
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FINANCIAL RESULTS
GRI 102-7
Operating revenue
Transmission
The net operating revenue in 2018 totaled
Transmission revenues fell 11.9%, from R$
R$ 24,976 million, reduction of 15.2% in relation
10,300 million in 2017 to R$ 9,071 million
to the R$ 29,441 million in 2017 (disregarding
in 2018, mainly due to the change in the
the distributors).
Generation
measurement of the balance receivable
related Remuneration of the financial asset
of the Existing System Basic Network (RBSE).
Generation revenues decreased 10.0%, going
Costs and expenses
from R$ 22,369 million in 2017 to R$ 20,139
million in 2018, mainly due to the negative
Operating costs decreased by 41%, from R$
variation of the supply account.
9,460 million in 2017 to R$ 5,537 million in
GROSS REVENUE BY BUSINESS SEGMENT (IN
R$ MILLION)
2018. Operating expenses, in turn, fell 67%,
from R$ 16,455 million in 2017 to R$ 5,502
million in 2018.
2017
(restated)
2018
22,369
10,300
1,041
The following accounts are highlighted in this
20,139
9,071
869
result:
Generation
Transmission
Other revenues
• Personnel: presented a reduction of 18%,
from R$ 6,578 million in 2017 to R$ 5,385
million in 2018, influenced by the cost
reduction policy established by the Company,
which offset the annual salary adjustment of
1.69%, by the Extraordinary Retirement Plan
(PAE), in the amount of R$ 853 million in 2017,
and by the Consensus Dismissal Plan (PDC), in
the amount of R$ 370 million in 2018.
• Material: presented a reduction of 0.7%, going
from R$ 264 million in 2017 to R$ 262 million
in 2018, mainly due to the company’s cost
reduction policy.
•
Services: growth of 4.3%, from R$ 2,068
million in 2017 to R$ 2,157 million in 2018.
The increase was mostly influenced due to
the increase in the consulting service at the
parent company.
• Other Expenses: a reduction of 5.2%, from
R$ 1,376 million in 2017 to R$ 1,304 million
in 2018, influenced by the company’s cost
reduction policy, which offset the provision
equivalent to the GAG investment cost
forecast of around R$ 197 million.
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Shareholding
Income tax and social
contribution
Shareholding recorded increase of 62%
resulting from accounting of R$ 2,692 million
The provision for income tax (IR) and
in 2017 and R$ 4,352 million in 2018, due to
Social Contribution (CSLL) went from an
the reversal of the negative shareholders’
expense of R$ 2,029 million in 2017 to
equity of the distributors Cepisa, Eletroacre,
an expense of R$ 2,484 million in 2018.
Ceron and Boa Vista Energia in 2018 and,
in 2017, the sale of CELG D in 2017 in the
amount of R$ 1,525 million.
Result
GRI 102-7
Financial result
In 2018, we reported net income of
R$ 13,348 million, reversing the loss of
The net financial result went from net
R$ 1,726 million in 2017.
expense of R$ 1,736 million in 2017 to
a net expense of R$ 578 million in 2017.
Such variation was caused mainly due to
the accounting of the agreement with
Eletropaulo in the amount of R$ 1,064
million, impacting the interest, commissions
and fees growth from R$ 1,736 million in
2017 to R$ 2,643 million in 2018.
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Statement of income for the year (DRE)
CONSOLIDATED (R$ million)
Net Operating Revenue
Energy Purchased for Resale
Charges upon Use of Electric Network
Fuel for Electricity Production
Construction
Gross Income
Personnel, material, services, and other
Depreciation and amortization
Operating provisions/reversals
Operating Result before Equity Interest
Equity Interest
Profit or Loss before Financial Result
Financial Result
Profit or Loss before Income Tax and Social
Security
Income Tax and Social Security
Net Income from continuing operations
Net Loss on Taxes of Discontinued Operations
Net Profit or Loss for the Period
2018
24,976
-1,560
-1,482
-1,185
-1,310
19,439
-9,108
-1,702
5,308
13,936
4,352
18,288
-578
17,710
-2,484
15,227
-1,879
13,348
2017 Restated
Change
29,441
-6,156
-1,372
-962
-970
19,981
-10,285
-1,524
-4,646
3,526
2,692
6,219
-1,736
4,483
-2,029
2,454
-4,179
-1,726
-15.2%
-74.7%
8.0%
23.2%
35.1%
-2.7%
-11.4%
11.7%
-214.2%
295.2%
61.7%
194.1%
-66.7%
295.0%
22.4%
520.5%
-55.0%
873.3%
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Value-added statement (DVA)
The R$ 2,109 million increase in taxes is a reflection of the profit growth, strongly
influenced by the reversals related to the Angra III Thermonuclear plant and the sale of 4
The added value to be distributed, in 2018, was R$ 42,596.9
distributors.
million, 72.7% higher than in 2017.
There was a positive variation of R$ 15,073 million in value
6,520 million in 2018, is a result of the Company’s cost reduction policy.
The negative change of 16% in the personnel account, from R$ 7,722 million in 2017 to R$
added for shareholders, from a negative amount of R$ 1,726
million in 2017 to a positive amount of R$ 13,348 million in
2018.
The increase of R$ 2,186 million in amounts to third parties
mainly reflects higher interest payments.
R$ MILLION
1,726
Shareholders
Third-
parties
Taxes
Personnel
13,348
10,872
13,058
7,653
9,672
7,722
6,520
(5,000)
-
5,000
10,000
15,000
12/31/2017
12/31/2018
Accordingly, the variation of R$ 18,076 million in Eletrobras’ Value Added Statement in
2018 is mainly explained by the reversals related to the Thermonuclear plant in Angra III
and the sale of 4 distributors.
EBITDA
EBITDA totaled R$ 19,990 million in 2018, a 158% increase over 2017. Managerial EBITDA
reached R$ 8,456 million, an increase of 26% when compared to 2017.
Consolidated debt
GRI 102-7
Net debt at the end of 2018 was R$ 26,098 million, an increase of 31.2% when compared to
2017. In the year, Eletrobras Holding chose not to access the local or foreign capital market;
also the Holding chose not to assume debts in the local or foreign banking market.
Get to know in detail the company’s economic-financial results in the year in the
Management Report, starting on page 84, available at: https://bit.ly/2vytHOX
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CAPITAL MARKET
Share performance
See the company’s share capital profile on page 78 and details on share
performance on page 79 of our Management Report, available at:
The macroeconomic scenario showed the signs of economic
https://bit.ly/2vytHOX
growth recovery, still at a slow pace, affected by the
truck drivers’ strike in the first half of the year and by the
instability generated by the presidential elections in the
second half.
Nevertheless, the IBovespa index, stock market main
indicator, advanced 15.0%, considering the closing score of
December 28, 2018.
Eletrobras’ common shares (ELET3), in turn, showed a 25.3%
appreciation, more than 10 pp above the Ibovespa, ending
the year quoted at R$ 24.23.
SHAREHOLDING STRUCTURE*
0.01%
Class “A”
Preferred
Shares
19.62%
Class “B”
Preferred
Shares
Common Shares
25%
51%
0%
4%
7%
13%
80.37%
Common Shares
Class “B” Preferred Shares
0.58%
7%
6.84%
Our shares have had significant appreciation in recent
years. Between January 2016 and December 2018, our
market value almost quadrupled, going from R$ 8.3 billion
to R$ 33.8 billion.
* All of the Preferred Shares are
distributed among “Other”, that is,
they are not concentrated in any
particular shareholder.
85.58%
Federal
Government
BNDESpar
BNDES
FND
FGHAB
Other
Federal
Government
BNDESpar
BNDES
Other
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SECTOR PROGRAMS
G4-EU7; G4-EU23
We support important initiatives by the federal government to
promote the sustainable development of society and the sector
through universal access to electric power, energy efficiency
The benefits generated by the program can be accounted for by the energy savings
that result in benefits for society, adding value to the Eletrobras brand. Since 2016,
the financial resources allocated in Procel have been provided for by Law 13,280 /
incentive and expansion of science and technology in the country.
2016, which relieved the company of these investments.
Get to know below the main programs developed by the
government in 2018, the contribution from Eletrobras and the
results achieved.
National electric power conservation program –
(Procel)
Brazilian program, coordinated by the Ministry of Mines and
25,000
20,000
15,000
5,000
0
1,965
1,420
1,453
942
0
0
7
9
,
7
8
6
3
,
7
1
5
0
1
,
3
2
0
4
,
0
8
6
1
1
,
3
5
4
4
,
1
0
2
1
2
,
4
5
1
5
1
,
1,238
5
7
3
8
,
1,701
7
8
9
2
2
,
7
8
8
6
,
7
5
2
7
,
2013
2014
2015
2016
2017
2018
624
7
9
0
9
,
8
5
4
3
,
2012
2500
2000
1000
500
0
Energy, destined at promoting the efficient use of electricity
Peak power demand reduction (MW)
and fighting waste, by means of education initiatives (Procel
Energy saved (thousand of MWh / year)
GHG emissions avoided
(thousand tCO2 equivalent)
Educação), dissemination of information (Procel Info), of energy
efficiency in the segments of buildings, environmental sanitation,
municipal energy management, public and industrial lighting
and support for energy efficiency through transparency for the
consumer (Procel Seal).
Procel, run by Eletrobras since 1985, saved, in 2018, an estimated 23 million
megawatts-hour (MWh) - equivalent to the annual consumption of 12 million
homes -, avoiding the emission of 1.70 million tCO2.equivalents. Since 2012, more
than 9 million tCO2.equivalents have ceased to be released into the atmosphere due
to Procel’s actions.
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Procel Seal
Procel Educação
centers to design and
disseminate advanced
2018 results
Allows the consumer to learn
Availability of information and
educational tools in energy
the energy consumption profile
educational resources to the
efficiency and develop and
of equipment and appliances,
country’s formal education
monitor energy optimization
promotes the technological
system, encouraging citizens to
studies.
development and improvement
develop skills, competences and
of the manufacturers and
attitudes towards the effective
supports the training in
use of energy.
Procel Info
laboratories and research
centers.
Through Procel in Schools, it
develops and make available
Supported by the program,
the “Energy that Transforms”
manufacturers are also
and “Nature of the Landscape”
encouraged to comply with
methodologies, to stimulate and
energy consumption rates
facilitate teachers’ approach
for devices, under the Energy
to basic education on energy
Efficiency Act #10,295/2001,
efficiency and sustainable
and receive subsidies for the
development.
preparation of technical energy
efficiency standards. Eletrobras
In professional training -
Cepel plays an important role
aimed at undergraduate and
in this project, supporting the
graduate students and energy
Seal since the beginning in 1993,
professionals -, Eletrobras
through its researchers and
and Procel have invested in
laboratories.
the creation of a network of
laboratories and research
The Brazilian Energy
Efficiency Information
Center (Procel Info) gathers,
generates, and disclose
important information
originating in Brazil or
abroad relating to energy
efficiency, through the Procel
Info website, developed by
Eletrobras in 2006.
Procel Reluz
22 technical cooperation terms
signed with Brazilian municipalities
for the modernization of public
lighting systems with LED
technology.
Expected results
22 municipalities benefited
14,000 modernized public
lighting points.
7.8 million kWh of energy saved.
Procel Info
54,312 registered users, with
1,821 new users, 3.5% more than
in 2018.
1,408,870 views, an average of
117 thousand visits / month.
610 services to the public.
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Programa Luz Para Todos (Light For
All) – (LPT)
Program aims to provide the service in
electric energy to the rural portion of the
Brazilian population that has no access yet
to such public service, through extensions of
electricity distribution grids, implementation
of generation systems with renewable
sources of energy in remote areas and the
connection, with the free installation, in
residences of up to three points of light, one
per room, two power outlets, conductors,
lamps and other necessary materials.
The LPT, with end scheduled for 2018,
was postponed until December 2022, by
Presidential Decree 9,357 / 2018.
The program offers solutions for its use as a
vector of social and economic development
in low income communities, contributing
to poverty reduction and increasing
family income, besides making easier the
integration with health services, education,
water supply and sanitation, as well as federal
government social programs.
Estimates of the MME indicate that more
than 510,000 direct and indirect jobs
were generated as a consequence of the
implementation of the program, which
prioritizes the use of local labor and the
purchase of domestic materials and
equipment.
Resources for this program come from the
federal government as subsidy—through
the Energy Development Account (CDE) and
from credit facilities—through the Global
Reversal Reserve (RGR) and Caixa Econômica
Federal, in addition to investments from state
governments involved and Executing Agents.
Eletrobras manages the contracts with
federal resources and the monitoring of the
execution of the set of rural electrification
works associated to these contracts.
The Luz para Todos program, operated by
Eletrobras and coordinated by MME, was
considered by the United Nations as an
example to be followed by other nations.
At the end of 2018, investments foreseen totaled R$
26.01 billion, of which R$ 19.00 billion (73%) related to
sector resources (CDE and RGR), managed by Chamber of
Electric Power Commercialization – (CCEE), of which 84%
were already available since 2004.
Results of the program in 2018
68,125 consumer units served.
Cumulative program results
• 3,457,162 consumer units served
(2,993,947 under Eletrobras contracts,
86% of the total);
• works carried out in 5,435 municipalities;
construction of 784 thousand km of high
•
and low voltage electrical networks;
implementation of 8.19 million poles;
installation of more than 1.14 million
transformers; and
•
•
• deployment of 3,561 individual and 17
collective photovoltaic systems.
16.4 million people benefited.
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Alternative source incentive
program – (Proinfa)
Program created in 2002, intended to
increase the participation of alternative
renewable sources in the Brazilian energy
matrix, adding projects based on wind,
small hydroelectric power plants (SHP), and
biomass sources to the SIN.
The Ministry of Mines and Energy defined
the total installed capacity to be contracted
and evaluated the impact of costs to final
consumers. Eletrobras carried out the
contracting and selection of projects for the
purchase and sale of energy. The contracting
of energy from projects ended on December
31, 2011.
The program, besides contributing to the
diversification of the energy matrix of the
Country, created about 150,000 direct and
indirect jobs in the whole country, bringing
industrial advancement and internalization
of state-of-the-art technology and reduction
of greenhouse gas emissions and exposure
to risks related to energy generation activity,
such as hydrological risk.
Results of the program in 2018
131 developments with installed capacity
of 2,975.10 MW:
• 60 SHP (533.34 MW)
• 52 wind farms (1,282.52 MW)
• 19 thermal and biomass plants
(1,159.24 MW)
9.3 million MWh generated at a cost of
R$ 3.48 billion.
Cumulative program results
97.7 million MWh of energy generated
Osório wind farm. Eletrobras Eletrosul collection
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MANAGEMENT SYSTEM
Rational and responsible
Pillars of the Environmental Management System
environmental
management is essential
to the sustainability of our
operations and our value
creation model.
Therefore, we rely on an
Environmental Management
System aimed at monitoring
all of the companies’ actions
related to the environment,
with a focus on prevention
and minimization of negative
impacts and improvement
of environmental quality,
contributing to the
maintenance of the balanced
environment for present and
future generations and for the
construction of a transparent
dialogue with the various
stakeholders.
Orientation: Environmental Policy
https://bit.ly/2HFYthH
The purpose of the Environmental Policy is to provide
guidance for the treatment of social and environmental
issues related to our electric power projects. The
document reinforces our commitment to respect for
the environment and Brazil’s sustainable development.
In 2018, Eletrobras Companies’ Environmental
Committee approved a revision of the Environmental
Policy, version 4.0 of the document, approved by
the Executive Board in March 2019. The version 4.0
presents a clearer and more concise text, addresses
compliance and incorporates the relation guidelines
with indigenous people.
The Environmental Policy review followed the
provisions of Eletrobras’ new internal regulations,
considered ISO 14001 and sought alignment with
the provisions of the Global Compact in encouraging
sustainable development and highlighting the
preventive approach.
It is incumbent upon our companies to incorporate
into their internal processes the principles and
guidelines of the Environmental Policy, applying
them to production operations and business
premises, developing and offering new services,
products and projects, selecting suppliers, service
providers and contractors, in the distribution and
logistics activities and in the management of waste,
effluents and atmospheric emissions. We must also
emphasize that the Environmental Policy should be
recognized by our business partners and applied
to the realization of due diligences, mergers and
acquisitions involving our companies.
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Management
Certification
External audits
Environment Committee
It is composed of managers of
In 2018, the Eletrobras
companies maintained their
ISO 14001 certifiication the
Eletrobras companies’ environmental
following operations: HPP
External audits were carried
out at Eletrobras Furnas
thermoelectric power plants
located in the state of Rio de
areas, and, at the technical level,
specialists organized in thirteen
topic-specific working groups and
a temporary committee to propose
guidelines for the relationship with
indigenous peoples.
Corporate Sustainability
Management Indicators
System (IGS SYSTEM)
Monitoring system with 231
environmental performance
indicators and 360 variables, with 498
registered users, subject to internal
and external verifications.
Tucuruí and HPP Coaracy Nunes
Janeiro, as required by State Law,
No. 1,898/91.
from Eletrobras Eletronorte.
The renewal certification
process for the Foz do Iguaçu
and Ibiúnas substations from
Eletrobras Furnas is scheduled
for completion in June 2019.
Eletrobras Chesf is ISO 14001
certified for the maintenance
service at Paulo Afonso
substation.
Investment
R$ 499.1 million invested in social
and environmental actions in 2018
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The Environmental Licensing
Monitoring System (SAL), is a
computerized environmental
Sharing best practices
Since 2011, the Best Practices
management tool, which started
Project has been gathering
to be developed in 2018, but at
the most important social and
the moment is in its final stages
environmental initiatives carried
of development. This tool will be
out by Eletrobras companies,
used by the holding company to
bringing benefits to the region
monitor the generation projects’
in which these projects are
environmental licenses and
conditions.
implemented. Initiatives can
be focused on mitigation,
environmental compensation or
voluntary, which go beyond what
Learn more about environmental
is required by law, reflect the
management on our website:
Company’s growing commitment
https://bit.ly/2HtMkrE
to sustainability. Learn more
on our website (https://bit.
ly/2EwU9uk). Below we present
the main environmental aspects of
our operation and the highlighted
projects in each one of them.
Nursery at HPP Marimbondo. Eletrobras Furnas / Paulo Martins collection
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WATER
GRI 103-1; 103-2; 103-3; 303-1; 303-2; 303-3; 303-4; 303-5
Outlook
Water use profile
The use of water by Eletrobras companies can be divided into: use by
power plants for power generation and administrative use.
The water used in the hydroelectric plants is completely returned
to water bodies with similar quality to their abstraction. However,
those that operate using the volume of the reservoir alter the amount
of water bodies downstream of dams, respecting the restrictions
of minimum flow in times of low inflows and of maximum flow,
performing flood control, in order to protect the valley downstream
from natural flooding. The hydroelectric power plants that run through
run-of-the-river systems do not store water and are not able to change
the downstream flow.
The Eletrobras hydroelectric plants are located in all Brazilian regions,
with emphasis on the São Francisco, Tocantins, Paraná, Paraíba do
Sul and Grande rivers, where the operations with the highest installed
capacity are located. Only one operation is located in water stress area:
Eletr0obras Chesf’s SHP Curemas, which represents less than 0.01% of
Eletrobras installed potential and did not generate electricity in 2018.
Eletrobras companies pay financial compensation and royalties
(in the case of Itapu Binacional) for using the water resources
in their hydroelectric dams. The Brazilian Electricity Regulatory
Agency (Aneel) manages the collection and distribution of these
resources among the beneficiaries: states, municipalities and
bodies run directly by the federal administration. The values are
calculated based on the energy generation for each year. In 2018,
Eletrobras companies paid the amount of R$ 374 million in financial
compensation and R$ 1 billion in royalties (Itaipu), which together
represent approximately 54% of the amount paid in Brazil.
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In thermoelectric plants, water is collected from surface sources for
The National Water Agency (ANA) evaluates such studies and considers the
refrigeration and steam generation and returned to the original water
future demand for water use in the basin prior to issuing a license, in order
body complying with legal standards of temperature and quality,
to enable multiple use of water in the future or preserve the resource.
minimizing the impact on ecosystems and habitats.
At the nuclear plants, the sea water is used for cooling the secondary
stored in the reservoirs of the National Interconnected System (SIN)
system and completely returned to the sea, with a small temperature
according to the observed flows and storage capacities and operating
The Electric System National Operator (ONS) define the volumes of water
increase.
restrictions of the system. Also, the ONS considers as other uses of water in
the reservoir region, focused on water security in the basin.
In administrative activities, water is mostly provided by the supply
network. Water abstraction for operations and administrative uses of
Volumes withdrawn from all operations are monitored, as are water
Eletrobras companies have licenses issued by the competent bodies.
and effluent quality, and data are made available to competent bodies.
Technical inspections are periodically conducted to evaluate water
management systems.
Water use management
In the hydroelectric project phase, Eletrobras companies make
Availability Scenario
projections of the consumptive use of water for the concession period
(regulated in 35 years), in order to estimate the water availability at the
Our generation is influenced by variations in rainfall, which may interfere
project site and the energy to be generated, based on studies and plans
with the volume and flow of the water bodies on which the hydroelectric
in accordance with the guidelines and scenarios of the National Water
power plants depend.
Resources Plan (PNRH). The Environmental Impact Studies consider
minimum flows for the maintenance of environments, species and
Eletrobras generates energy mostly from hydroelectric plants and has three
ecological processes downstream of hydroelectric plants.
reservoirs which are among the largest in the country: Sobradinho (on the
São Francisco river), Furnas (on the Rio Grande river) and Tucuruí (on the
Tocantins river).
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PERCENTAGE OF NATURAL FLOWS IN RELATION TO THE HISTORICAL
AVERAGE OF FLOWS*
100
y
r
o
t
s
i
h
T
L
M
%
90
80
70
60
50
40
30
20
10
0
2013
2014
2015
2016
2017
2018
* Calculated from 1931 to 2018.
Source: Electric System National Operator (ONS)
Fumas
Sobradinho
Tucuruí
Within this scenario, in the last five years the reservoirs of
Sobradinho HPP and Furnas HPP did not reach the maximum
volume. However, in 2018 they showed an increase in water
volume compared to the previous year. As for the reservoir of
the Tucuruí HPP, there was no total refill; only in the year 2016. In
other years, there was maximum use of the reservoir.
It is important to emphasize that the reservoirs are operated
centrally by the ONS, together with the agents, in order
to optimize the use of the water resource, considering the
hydrological characteristics of each region and the operational
restrictions of the SIN. In the case of the Sobradinho HPP there
are operational restrictions associated with exceptional measures
of flow reduction practiced by the reservoirs located in the São
Francisco river basin, with the authorization of ANA and Ibama.
Fish in the piracema. Itaipu Binacional/Alexandre Marchetti collection
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Commitments and initiatives
Considering the relevance of water resources for our business, Eletrobras
We developed a Water Resources Policy since 2010, published on
also participate in several initiatives aimed at the development of water
our website https://bit.ly/2ObIB66, with the aim of promoting the
management of the National Water Resources Management System
sustainable and rational use of these resources, considering their
(SINGREH), such as the National Water Agency (ANA), the Hydrographic
multiple uses in the energy sector.
To monitor and address issues related to water resources that
Basin Committees (CBH), the State Water Resources Councils (CERH) and
the National Water Resources Council (CNRH). In addition, we participate in
important forums and events related to the theme and in 2018, highlighting
influence business, since 2005 Eletrobras companies rely on the
the 8th World Water Forum, held in Brazil.
Working Group on Water Resources and Hydroelectric Potential of
Eletrobras Companies (GTRH-EE). The group prepares annual reports
with evaluations and follow-ups of the monthly average flows of
the projects, creating an overview of the water resources used for
energy generation. In 2018, the group held its first technical meeting,
which was attended by several professionals who work with water
resources of all Eletrobras companies, presenting technical articles
related to topics such as: water resources management; safety of
dams; good practices related to water; flow forecasting; technologies
and sustainability in hydroelectric plants; besides hydrological and
hydrosedimentological monitoring.
The Eletrobras companies maintain a hydrometric monitoring network
to record upstream and downstream water levels and the influent
flows to their reservoirs, among other parameters. The water quality
of the reservoirs is also monitored by physical, chemical and biological
parameters defined in the licensing process.
During the 8th World Water Forum in 2018, Eletrobras voluntarily
joined the Brazilian Business Commitment for Water Safety,
launched at the event by the Brazilian Business Council for
Sustainable Development (CEBDS). The commitment was signed
by 20 large Brazilian business groups. Eletrobras companies
participate, with their projects, in several commitment goals.
Learn more at: http://bit.ly/2W1uiIA
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Water consumption
INDICATORS IN 2018
Consumption profile
Water consumption in Eletrobras
companies operations and
administrative processes is usually
withdrawn from surface water bodies or
underground sources, as granted by the
competent bodies, or, in the companies’
administrative buildings located in
urban areas is usually performed by a
public service concessionaire.
At hydroelectric plants, water is used
to power turbines and therefore does
not add up to the total volume of water
consumed.
At nuclear power plants, seawater is
used for cooling the secondary system
and is completely returned to the sea,
with a slight temperature increase.
Water withdrawal by source (in thousands of m3)
2016
Administrative activities
Surface water
Ground water
Water Supply Network
4,208.0
3,396.7
271.8
539.4
2017*
3,835.1
3,150.0
205.8
479.4
2018
4,087.3
3,146.8
459.4
481.1
Thermoelectric power generation
3,315,378.4
3,384,706.9
3,301,929.8
Surface water
Ground water
Water Supply Network
Seawater
TOTAL water withdrawn
10,996.5
8,604.8
10,620.5
3.6
0.20
-
0.1
-
0.2
3,315,363.7
3,376,102.0
3,291,309.1
3,319,586.4
3,388,542.0
3,306,017.1
* Data for 2016 and 2017 were recalculated, excluding distribution companies, to allow comparison with 2018.
** The distribution companies were excluded from the calculation in 2018, while in 2016 and 2017 they were included.
For the purposes of comparability between the water consumption values from the public supply network in
the last three years, the indicator composing PDNG 2018-2022, the data were recalculated to 2016 and 2017,
excluding distribution companies.
In 2018, water consumption from the supply network in administrative activities was 0.35% higher than in 2017,
while the goal for this indicator was a reduction of 0.30%. In 2017 Eletrobras companies had reduced water
consumption in their administrative activities by 12.52% compared to 2016. In 2018, Eletrobras companies
captured 600.92 m3 of rainwater.
The total water consumption was 4,807.3 m3, which basically includes the water used in the administrative
activities and the water used in the Eletrobras Furnas fish farm. The volume of water boosted by the
hydroelectric power plants reached 842,256,224,192 m3, which, together with the water collected by the nuclear
power plants (3,291,309.1 m3), was returned to the rivers and the ocean in monitored quality conditions.
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BIODIVERSITY
GRI 103-1; 103-2; 103-3
Outlook
GRI 304-2; 304-3
Biodiversity is directly related to the nature of the business and the
management and minimization of our impacts are a relevant guideline
and a priority in our strategy, which should be followed from the
planning to the operational phase of the projects.
In the planning phase, Environmental Impact Studies (EIA)
characterize, evaluate and map the biodiversity of the areas to be
used for the implementation of the projects and identify possible
impacts, with special attention to those related to rare, endemic and
endangered species (according to national and international lists).
For each identified impact, actions are proposed to avoid and prevent
risks, reduce, mitigate, repair and / or compensate for these impacts,
avoiding risks according to the principles and guidelines of the
Eletrobras Environmental Policy.
In the following infographic, you may learn the most relevant impacts
on biodiversity, both in the implementation and operation of the
projects, as well as examples of monitoring, control, recovery and
conservation actions. For details on the actions developed, access the
section “Best management practices”.
Protection strip in Itaipulândia. Itaipu Binacional collection / Nilton Rolin
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Possible direct impacts
Possible indirect impacts
Type of Activity/ Project
Examples of actions/ programs
Change in water quality
Proliferation of macrophytes
Water quality monitoring
programs
Vegetation loss
Forest fragmentation
Reforestation programs
Change in ecosystems/habitats
Decreased diversity of
flora and fauna
Interference with flora and fauna
Change in communities
Interference with the migration
routes of aquatic fauna
Isolation of populations
Support for the creation or
maintenance of conservation units
Reforestation, wildlife rescue and
monitoring Programs
Fish Transposition Mechanism
Interference with the migration
routes and collision of birds
Reduction of migratory
bird populations
Installation of signaling equipment
to avoid collision
Legend
Hydroelectric
power plants
Thermoelectric
power plants
Wind
farms
Transmission
lines
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Commitments and initiatives
Since 2012, our Environmental Policy has specific
guidelines regarding biodiversity, with the aim
of improving management and including the
topic in Eletrobras companies’ decision-making
processes. In line with public policies and
international agreements to which Brazil is a
signatory, Eletrobras companies seek to maintain
a systematic and ongoing improvement process
in management practices, with the support of the
IGS system, a tool that allows monitoring of the
environmental performance of the companies
with relation to biodiversity.
This monitoring evidenced the need for research
and innovation studies and projects development
focused on the conservation of biodiversity. In this
way, Eletrobras defined as a goal for biodiversity
“To develop, between 2019 and 2023, annually a
new study / research project that contributes to
the conservation of biodiversity and ecosystem
services.”
We maintain a permanent working group
- Working Group on Water Resources and
Best management practices
Biodiversity - which has been analyzing the risks
Through conservation actions, support
and opportunities related to biodiversity and
ecosystem services. So far, the priority resources
and properties of Eletrobras companies have
been identified for the operation of their
businesses, and it is necessary to assess the
magnitude of this risk and its associated cost.
In 2018, we held the Biodiversity Conservation
Symposium at Eletrobras Furnas, focusing on
the relationship between the business of large
companies and biodiversity and ecosystem
to protected areas, protection and
preservation of endangered species,
Eletrobras companies seek to have a
positive impact on biodiversity and water
bodies in the areas in which they operate.
Conservation Units and Protected
Areas
services, issues of vital importance for the
Support for protected areas has proven
rational use of natural resources.
to be an effective measure to contribute
to biodiversity protection. Since 2012,
In addition, we participate in external forums
Eletrobras companies have been supporting
that address biodiversity issues, among which
protected areas such as conservation
we highlight our presence at the Thematic
units, indigenous lands and archaeological
Chamber on Biodiversity and Biotechnology
sites, located in the main Brazilian biomes
(CTBio) of the Brazilian Business Council for
(Cerrado, Atlantic Forest, Amazon, Caatinga
Sustainable Development (Cebds).
and Pampa), which currently amount to
about 9 million hectares and more than 60
By 2018, the biodiversity guidelines have been
areas.
revised to include issues related to ecosystem
services.
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Eletrobras companies also have their
own protected areas, created with the
aim of contributing to the conservation
of the regional biodiversity, scientific
research and environmental education.
The Wildlife Preservation Areas, that
make up the Mosaic of Conservation
Units of the Tucuruí Lake, managed by
Eletrobras Eletronorte, the Santa Maria
Biodiversity Corridor, the Maracaju
Biological Sanctuary and the Santa Helena
Biological Sanctuary, managed by Itaipu
Binacional and Trilha Porã, the Restinga de
Mambucaba Park and the Cecremef Forest,
managed by Eletrobras Eletronuclear, are
examples of these protected areas.
Legend
Environmental
Protection Area
Area of Relevant
Ecological Interest
Forest
Green Corridor
Ecological Station
National Forest
Ecological Park
State Park
Forest Park
City Park
National Park
Natural Park
Biological Sanctuary
Biological Reserve
Sustainable Development
Reserve
Ecological Reserve
Extractive Reserve
Private Reserve of Natural
Heritage
Archaeological Site
Indigenous Land
Biome
Amazon
Caatinga
Southern Fields Cerrado
Cerrado
Coastal
Caatinga-Amazon Ecotones
Cerrado-Amazon Ecotones
Cerrado-Caatinga Ecotones
Atlantic Rainforest
Pantanal (wetlands)
Parque Municipal
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Seven operating units of the Eletrobras companies are adjacent, inserted partially or totally in environmental protection areas.
Only two of these protected areas were created prior to the installation of the projects - Iguaçu National Park and Serra da
Bocaina National Park. The other protected areas with interference are subsequent to the implementation of the projects,
created with Eletrobras companies support.
UNITS INSERTED OR ADJACENT TO PROTECTED AREAS (GRI 304-1)
Unit
Unit position in relation to
the protected area
Operation type
Operating unit size
(km2)
Protected Area
HPP Itaipu
ADJACENT
Hydropower
generation
1,350.0
Angra 1
Angra 2
Angra 3 (under construction)
HPP Tucuruí
HPP Samuel
HPP Balbina
ADJACENT
FULLY INSERTED
PARTIALLY INSERTED
FULLY INSERTED
Energy generation
from nuclear power
source
1.4
Hydropower
generation
Hydropower
generation
Power generation
and elevation
3,008.1
585.0
2,560.0
Iguaçu National park
Ilha Grande National park
Cabeça de Cachorro State Park
Santa Maria Private Reserve of Natural Heritage
Serra da Bocaina National Park
Tamoios Environmental Protection Area
Tamoios Ecological Station
Tucuruí Environmental Protection Area
Samuel Ecological Station
Uatamã Biological Reserve
The location of projects close to protected areas often allows companies to support these areas, with initiatives such as biodiversity
conservation, research, environmental education and tourism in the Iguaçu National Park, carried out by Itaipu Binacional, and the
demarcation and signaling actions of the Serra da Bocaina National Park by Eletrobras Eletronuclear.
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Forest Germplasm Program
Developed by Eletrobras
Eletronorte at HPP Tucuruí, it aims
to manage and conserve native
forest species and contribute to
the reforestation and restoration
of degraded areas, mainly in
the Lower Tocantins (PA) region,
through conservation of native
forest seed collection areas and
the production and distribution of
seeds and seedlings.
Since its inception in 2017, 197
species have been collected and
produced about 3 million seeds and
130 thousand seedlings, of which
1.5 million seeds and 100 thousand
seedlings were donated.
Biodiversity programs (Itaipu Binacional)
Since 1985, Itaipu Binacional has developed the Management Program for Hydrographic Basins,
which was responsible for planting 23 million trees in the area of the Paraná River basin by 2015,
representing approximately 28% in the Atlantic Forest restoration in Brazil, in the period, according
to the Atlas of the Forest Remains of the Atlantic Forest, produced by the SOS Mata Atlântica
Foundation and by the National Institute of Space Research (INPE).
In 2018, Itaipu donated 100 thousand native forest seedlings for the restoration project of the
Paraná River Biodiversity Corridor. In addition, it maintains eight Biological Refuges and two
Biological Reserves in Brazil and Paraguay, which comprise more than 100 thousand hectares
of protected areas, and the Wild Animal Breeding Center, responsible for the reproduction of
endangered species in Brazil, such as harpy, the jaguar, the tapir and small felines.
Nascentes Project (Eletrobras Furnas)
The Nascentes project from Eletrobras Furnas aims at the reforestation of springs in the reservoir
area of the Furnas HPP, aiming at maintaining the water supply in the reservoir, as well as
reducing the risks of scarcity in the surrounding municipalities, in addition to contributing to the
improvement of environmental quality in rural properties and mitigation and adaptation to climate
change. Since its implementation in 2017, it has been responsible for planting 13 thousand
seedlings in 69 springs in the Mata Atlântica and Cerrado biomes, in eight municipalities located
near the Furnas HPP Reservoir.
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Biodiversity protection and research
(Eletrobras Eletronorte)
Reforestation and restoration programs in Pernambuco
(Eletrobras Chesf)
Eletrobras Eletronorte is responsible for
In 2018, Eletrobras Chesf started reforestation and restoration
the maintenance of areas dedicated to the
programs in areas of the Caetés Ecological Station, the Saltinho
preservation of biodiversity and for research.
Biological Reserve and the Laranjeiras Settlement, all in the
The Adolpho Ducke Forest Reserve is an
State of Pernambuco. In the same year, 88 thousand seedlings of
Environmental Protection Area (APA) with 10
native species were produced in the Viveiro Florestal, maintained
thousand hectares, located in Manaus, which
by Eletrobras Chesf in Xingó (AL), and donated 34.6 thousand
serves as a research support for the National
seedlings of native species to various entities and projects for the
Institute of Amazonian Research (INPA) and
recovery of degraded areas in Alagoas, Bahia and Pernambuco.
other national and international institutions.
The Mosaic of Conservation Units in the Lake
of Tucuruí, located in Pará, is composed by the
Lake of Tucuruí APA, with 568,600 hectares,
two Sustainable Development Reserves (RDS),
Alcobaça, with 36,100 hectares, and Pucuruí
Ararão, with 29 thousand hectares, besides two
Wildlife Preservation Areas, Release Areas 3, with
10 thousand hectares, and 4, with 20 thousand
hectares, which are designated as Wildlife
Preservation Areas, due the importance for
biodiversity conservation. The Samuel Ecological
Station has 72 thousand hectares dedicated to the
protection of an area representative of the Jamari
River Basin natural ecosystems.
Preservation and recovery (Eletrobras Eletronuclear)
Trilha Porã is a 2.5 km long trail, located in a permanent
preservation area owned by Eletrobras Eletronuclear in the city
of Angra dos Reis (RJ). It has about 440 hectares, within the
Atlantic Forest biome, and is an important tool for environmental
education, recreation and research. Eletronuclear was also
responsible for the recovery of almost 23 thousand m2 of the
Restinga de Mambucaba Park and the Cecremef Forest, owned
by the company, with the planting of native seedlings. Currently,
the company is recovering a restinga area of 4,000 m2 in the
residential village of Mambucaba, near the forest and the park.
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CLIMATE CHANGE
GRI 103-1; 103-2; 103-3; 201-2; 302-4; 302-5
Outlook
The energy and fuel consumption of our operation and our chain generates Greenhouse Gases (GHG)
emissions, considering the following scopes:
ELETROBRAS COMPANIES’ GHG INVENTORY
SCOPE 1
SCOPE 2
SCOPE 3
Emission Factors:
• Electric Power
(MCTI )
• Energetic content
of fuels (BEN 2015);
•
IPCC (2006)
• MMA (2011)
• Direct Emissions
from Fixed Sources
(TPPs)
• Mobile Fonts
• Fugitive emissions
(SF6, cooling gases)
• Sanitary effluents
• Other fixed
sources: LPG,
natural gas, diesel
from generator
groups and
auxiliary boilers
• Emissions related
to the amount of
energy acquired
from the grid
• Transmission
losses
• Distribution losses
•
Independent power
producers (IPPs)
• Air travel
• Transport of non-
energy products
• Fuel transportation
• Transportation of
employees
Methodology:
• GHG Protocol
•
IPCC (2006)
• Operational
Control Approach
Gases: CO2 CH4 N2O SF6 PFC HFC
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On the other hand, the irregular rainfall, caused by climate changes,
This scenario also brings opportunities for the creation of new technologies
has an impact our operation, and directly affects our hydroelectric
and business models towards a low-carbon economy. Our innovation, research
power generation activities. The lower availability of water for
and development projects seek to reverse climate change risks into new
water generation also brings another impact: an increase in thermal
business and social value creation opportunities. Learn more in the R&D and
generation, based on fossil fuels and, therefore, intensifying GHG
Innovation chapter.
emissions.
The increase in extreme events also affects our transmission
operations, causing disruption in the functioning of networks and
impacts to society.
In addition, we may be negatively impacted by the creation of new
legislation for GHG emission intensive sectors or activities, or by the
adoption of carbon pricing as an efficient and effective alternative to
reduce GHG emissions. This scenario is becoming increasingly likely,
since Brazil, as a signatory to the Paris Agreement (COP 21/2015), aims
to reduce its GHG emissions by 37% by 2025.
These issues are being considered as challenges to be faced by
the Company through adaptation studies and analysis of risks and
vulnerabilities to climate change. In order to anticipate this scenario,
Eletrobras companies annually carry out a carbon pricing study in
order to evaluate future financial impacts on their operations.
In partnership with the Federal University of Rio de Janeiro (UFRJ),
Eletrobras Furnas developed, as part of its R&D projects portfolio,
tested and validated prototypes for urban buses with traction 100%
electric and hybrid (electric / ethanol and electric / hydrogen).
Innovation is of great importance because it brings - for mass
transportation - high energy efficiency and state-of-the-art
domestic technology, reducing environmental impact by eliminating
sources of air and noise pollution while generating savings in fuel
costs.
Altogether, there were 330 thousand people transported in the 8
thousand kilometers driven by the developed vehicles.
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Guidelines and initiatives
Eletrobras’ Integrated Energy Efficiency
Committee (Cieese)
(CDP), and, since 2017, the Company adhered
to the “Business Positioning on Carbon Pricing
Mechanisms”, launched by the Business Climate
We are committed to increasingly mitigate our
negative impact and contribute to the transition
to a new development model based on a low-
carbon economy. The main pillar of our climate
strategy is to prioritize energy generation from
Composed of representatives of Eletrobras
Initiative, and signed the “private sector
companies, with a focus on promoting business
support letter to pricing”, prepared by the
energy efficiency through the development of
Business Climate Initiative with support from
technological solutions for all subsidiaries, technical
Carbon Pricing Leadership Coalition (CPLC), an
low emission sources, which represent more than
cooperation and excellence.
initiative of the World Bank.
95.2% of our installed capacity.
Eletrobras companies’ environmental policy
presents nine guidelines to reduce emissions and
energy consumption from nonrenewable sources,
which have been publicly endorsed through the
declaration of commitment on climate change,
since 2012, in order to give a differentiated and
preferential treatment to this issue.
To monitor and address climate change issues
that influence business, we have two committees
dedicated to energy efficiency and climate
strategy, which have been working on monitoring,
drafting studies and proposing actions on the
issue.
Working Group on Climate Change Strategy
(WG 3)
Linked to Eletrobras Companies’ Environment
Committee (SCMA) and composed of representatives
of all Eletrobras companies, works on the
development of strategies and on proposal of GHG
emissions reduction targets and relies on task
forces that are developing adaptation studies on
climate change and quantifying CO2 emissions and
reabsorption due to land use activities.
We are also connected to advance studies and
external initiatives on the subject. Since 2013, we have
adopted internal carbon pricing in our emissions-
intensive operations to assess the financial impact
of a possible CO2 emissions taxation, which made us
elected benchmark in the Carbon Disclosure Project
In 2018, the Task Force on
Adaptation to Climate Change
developed a diagnosis on risks and
opportunities related to climate
change in Eletrobras companies, with
the mapping and prioritization of the
risks and climatic opportunities that
apply to the organization, based on
a perception survey from different
areas and companies that make up
the Eletrobras System.
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Energy consumption
In 2018, Eletrobras companies consumed 87,091,971 GJ, 16% less than in the previous
year. Of this total, there were 81,249,710 GJ (97.3%) was direct consumption of energy
and 5,842,261 (6.7%) was indirect consumption.
Energy consumption (GJ)
2016*
2017*
2018
Consumption from renewable sources
425,839.70
695,699.10
688,373.40
Fossil fuels consumption
77,638,953.50
68,360,431.10
80,561,336.90
Electricity consumption
6,417,312.40
5,856,095.60
5,842,260.80
Total
84,482,105.60
74,912,225.80
87,091,971.10
* Data for 2016 and 2017 were recalculated without distributors to allow comparison with 2018.
Direct energy consumption:
consumption from renewable
sources (such as ethanol and
biodiesel) and non-renewable
sources (such as gasoline, coal,
liquefied petroleum gas, diesel
oil, fuel oil and aviation fuel). It
takes place in the operation of
thermoelectric power plants and
emergency diesel groups, as
well as in the supply of the own
fleet of vehicles.
Indirect energy consumption:
consumption through
intermediary sources, such as the
energy consumed in the form of
electricity.
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GHG emissions
GRI 305-1; 305-2; 305-3; 305-4- 305-5; 305-6; 305-7
In 2018, Eletrobras companies recorded total emissions of 6,063,440
tCO2e, considering scopes 1, 2 and 3.
GHG Emissions
(tCO2e)
2016*
2017*
2018
Change
2018x2017
(%)
Scope 1
Scope 2
Scope 3
Total
5,776,981
4,674,090
5,350,290
14.50%
922,045
923,056
670,337
-27.40%
67,176
81,726
42,813
47.6%
6,766,203
5,678,872
6,063,440
6.3%
*In order to compare GHG emissions in 2016, 2017 and 2018, the 2016 and 2017 values
were recalculated, excluding distribution companies.
For more information, please see the full GHG Emissions Inventory table on
our website at: https://bit.ly/2DK0lS1 -, published annually in accordance
with the IPCC methodology (2006) and the guidelines of the Greenhouse
Gas Protocol – GHG Protocol (WRI, 2004).
The emission intensity, considering Scopes 1 and 2, calculated in relation
to the net generation of energy (MWh) and also the net operating revenue1
(NOR in R$) allows for a uniform comparison between all our generation
and transmission companies , regardless of their size and specificities.
The emission intensity by energy generated (not considering losses) and by
Net Operating Revenue followed the increase, totaling 0.256 tCO2e/MWh
and 0.037 tCO2e/R$ thousand, respectively.
Emission intensity (Scopes 1 and 2, without losses)
2016*
2017*
2018
By Net Operating Revenue (tCO2/NOR)
By Net Generation (tCO2/MWh)
0.282
0.201
0.256
0.039
0.033
0.037
* For the comparison between the emission intensity of 2016, 2017 and 2018, the indicator composing the
2018-2022 PDNG, the values of 2016 and 2017 were recalculated, excluding distribution companies.
Considering Scope 3 (metric used in intensity indicators presented in 2018-2022
PDNG), the intensity has increased when compared to 2017.
Emission intensity (Scopes 1, 2 and 3)
2016*
2017*
2018
By Net Operating Revenue (tCO2/NOR)
By Net Generation (tCO2/MWh)
0.290
0.201
0.247
0.046
0.040
0.042
* For the comparison between the emission intensity of 2016, 2017 and 2018, the indicator composing the
2018-2022 PDNG, the values of 2016 and 2017 were recalculated, excluding distribution companies.
The recurring effect of the Existing System Basic Network (RBSE) was considered to calculate compliance
with the corporate target of Total GHG Emissions on Net Operating Revenue for 2018.
Overhaul Project (Eletrobras CGTEE)
The Overhaul project is under development, which provides for the processing
of dry coal, a process called jigging. The process improves the fuel quality and
provides the reduction in consumption and, consequently, reduction in emission of
atmospheric pollutants and operational costs, thus bringing efficiency gains.
Its development seeks to recover the TPP Candiota III Phase C of the Candiota
Thermoelectric Complex, improving its availability and operational performance
with lower generation costs, bringing supply guarantees to the Electric System of
the South region of the country.
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Emissions of other Greenhouse Gases
GRI 305-7
In addition to GHG emissions, sulfur oxides (SOx), nitrogen oxides (NOx) and
Particulate Matter (PM) emissions are also estimated in the Company’s own
TPPs. In 2018, these emissions totaled 11,344.11 tons, 4,644.47 tons, and
907.72 tons, respectively.
Monthly reports are submitted to IBAMA with the validated monitoring data,
fault identification and conclusions on emissions from power plants.
Methodologies and premises
•
Includes 100% of the GHG emissions from the units over which they have
operational control and do not account emissions from the operations in
which they only hold corporate interest (SPEs).
• Calculates emissions related to electricity consumption, transmission
losses based on SIN emission factors - published by the Brazilian Ministry
of Science, Technology and Innovation (MCTI) - and the energy content
of the fuels consumed based on the conversion factors contained in the
National Energy Balance (BEN).
• CO2 emissions from biofuel consumption (biodiesel, ethanol added to
gasoline and alcohol fuel) are not included in this inventory, as they are
reabsorbed through photosynthesis in sugarcane and soybean crops,
among other plants used in the production of these biofuels.
•
GHG emissions from hydroelectric reservoirs that belong to
Eletrobras companies are not considered because there is currently
no international scientific consensus methodology to estimate these
emissions and calculate emissions (or net emissions) from water
bodies.
•
Thermoelectric power generation emissions from Independent Power
Producers (IPP), whose power is acquired by Eletrobras concessionaires
and resold to the end consumers, are quantified under scope 3 and
therefore recorded separately from Eletrobras companies’ own
thermoelectric power plants, recorded under scope 1.
•
In order to continuously monitor coal-fired power plants emissions,
the Company uses an extractive CEMS method based on NDIR
absorption for SOx and NOx. On the other hand, for the isokinetic
particle sampling, the Company uses the following methods: for SOx,
Cetesb L9. 228; and for NOx, Cetesb L9. 229.
•
Total particulate matter emission considers emissions from the
Candiota Thermoelectric Complex, of Eletrobras CGTEE, which uses
coal to generate electricity.
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DIALOGUE AND COMMUNICATION
GRI 102-33; 102-40; 102-42
CORPORATE EDUCATION MANAGEMENT
•
Institutional website (responsive and avaiable to people
with visual and listening disabilities);
• Direct survey with suppliers and investors;
• Climate survey;
•
Social media channels - Twitter, Facebook, Instagram,
Youtube and Linkedin;
• Ombudsman channels;
• Centralized Whisteblower Channel;
•
IR Ombudsman for consultations, suggestions, complaints,
criticisms or compliments regarding the capital market
(available in Portuguese, English or Spanish); and
• Customer survey.
We maintain a continuous dialogue
with our stakeholders, people that
somehow impact or are impacted by
our activities.
The identification of these
stakeholders is in line with our
strategy and Eletrobras companies’
Code of Ethical Conduct and Integrity.
Our dialogue and engagement are
guided by Eletrobras companies’
Stakeholder Engagement and
Communication Policy.
In addition to the extensive and
continuous communications with our
stakeholders, we also survey them
to identify the most material aspects
related to our companies. The results
STAKEHOLDERS
are considered in the strategic
planning, so that the business
conduct meets the expectations of
the stakeholders.
• Employees and family members;
• Customers;
• Communities;
• Society;
• Press and opinion leaders;
In 2018, the Integrated Communication
Committee of Eletrobras Companies was
set up to improve the communication
actions and the engagement with
stakeholders and to give greater synergy
to the development of integrated
communication actions, coordinated by
the holding company and composed of the
superintendents of the Communication
areas of all the Eletrobras companies.
Another evolution in the year was the
revision of the Eletrobras Companies ‘Social
Responsibility Policy, with the inclusion of
integrity themes and sections of Thematic
Guidelines, among them one of human
rights, and the implementation of the
Eletrobras Companies’ Spokesperson Policy
in order to perfect our relationship with the
press. Access the documents in the links
https://bit.ly/2RUFpA6 and https://bit.
ly/2AyaUpM, respectively.
• Government, congressmen
and regulatory bodies;
The chapters below present our practices
• Investors, shareholders and
for building long-term relationships that
market analysts; and
• Partners, sponsors and
suppliers.
generate value for our main stakeholders.
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EMPLOYEE DEVELOPMENT
Eletrobras companies’ People Management
Policy brings the guidelines on providing
the appropriate conditions for the
development, appreciation and retention
of talents. In 2018, the policy was reviewed
and the Eletrobras companies’ People
Management Regulation was created, with
the objective of “establishing common
practices and rules for the integrated
management of people management areas,
aiming at the standardization of processes
aligned with strategic guidelines of
Eletrobras holding, potentializing synergies
and contributing to the construction of the
same corporate culture“.
Management
GRI 103-1; 103-2; 103-3
Our employees are essential for the
sustainability of the business and for the
achievement of our strategy goals, targets
and results. Therefore, our management
is dedicated to continuously promote the
improvement of workplace conditions, health
and safety, quality of life and development of
these professionals.
One of the strategic guidelines of our 2018-
2022 PDNG, maintained in 2019-2023
PDNG, promotes the appreciation of people,
reflecting the relevance of this public and
our commitment to generate shared value,
fostering a culture of appreciation of skills
and recognition of our employees.
Eletrobras companies’ People
Management Policy includes
guidelines on acting in an
integrated manner and monitoring
people management, ensuring
equal rights, opportunities and
obligations, while respecting the
specific characteristics of each
region, increasing the synergies
between employees and the
Eletrobras companies.
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Profile
GRI 102-7; 102-8; 102-22; 401-1; 401-3; 405-1; 406-1
At the end of 2018, our personnel was composed of 15,658 employees.
Employment
contract
Temporary
Permanent
Employment
type
Full-time
Colaboradores
Part-time
Leadership
Employees
Turnover
Total of admissions
Admission rate
Total terminations
Turnover rate
Gender
Region
Female
3,028
Male
North Northeast Midwest
Southeast South
12,576
1,659
4,112
1,520
5,412
2,881
17
37
0
0
5
27
22
102-8
Gender
Female
Male
2,870
175
10,882
1,731
Parental leave
ended in 2018
% of the employees who returned
to work
563
at the end of licenses
remained 12 months after the license ended
Colaboradores
Gender
Female
99%
88%
Male
100%
93%
Gender
Female
Male
21%
19%
79%
81%
Age group
Between
31 and 50
67%
57%
Over
51
32%
40%
Up to
30
0.2%
3%
Minorities
Black, brown,
asian and indigenous
21%
37%
PWD
0.5%
2.3%
Gender
Region
405-1
Age group
Female
28
0.9%
232
7.6%
Male
101
0.8%
866
6.9%
North Northeast Midwest
Southeast South
Up to
30
Between
31 and 50
Over
51
0
0.0%
59
20
0.5%
422
3.6%
10.3%
1
0.1%
113
7.3%
8
0.1%
244
4.5%
100
3.4%
260
49
11.9%
19
60
0.7%
204
20
0.3%
875
9%
4.6%
2.3% 13.9%
401-1
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Since 2017, we were aimed at re-adjusting
approved by the Secretariat of Coordination
PDNG, enables the implementation of an adequate
the number of employees in accordance
and Governance of State-Owned Companies
succession plan, while the People Management
with our current assignments, generating
and the dismissals totaled 905 employees.
Policy and the People Management Regulation of
increased efficiency in the processes, greater
balance between the teams and a sustainable
profile for the development of the business
and employees in the coming years.
We have worked on the definition of
qualitative and quantitative improvement
actions of Eletrobras companies’ personnel,
according to position held, level of
complexity, training, area of activity, macro
process, organizational process and unit. It
also considers the ongoing re-adjustment
measures, such as the implementation
of the Shared Services Center and the
standardization of the integrated business
management system (ERP), as well as the
Consensus Dismissal Plan (PDC).
The PDC was implemented simultaneously
in the holding company and in Eletrobras
Amazonas GT, CGTEE, Cepel, Chesf,
Eletronorte, Eletronuclear, Eletrosul and
Furnas. The conditions were previously
The correct re-adjustment of our
personnel is essential to the sustainability
and achievement of the Company’s
strategic planning. Initiatives in
this regard generated savings of
approximately R$ 65.7 million in 2018 to
Eletrobras companies, and the estimate is
that the annual savings, starting in 2019,
will be R$ 309.3 million.
The total number of employees in 2018 is
31.7% lower than in the previous year, due
to these initiatives and also to the sale of
distribution companies.
The PDC had as one of its stages the
Knowledge Transfer Program, designed to
ensure that the employee’s dismissal does
not negatively affect the activities of his/
her area and does not harm the company.
In addition, the Talent and Opportunity
Bank, an initiative created from 2018-2022
Eletrobras Companies provide for the establishment
of processes and criteria so that succession takes
place in a planned manner, allowing for an adequate
career transition.
Most of the Eletrobras companies have
initiatives to support employees who are in
process of preparing for retirement, such as
the Retirement Preparation Program (PPA).
This program is aimed at supporting
the reflection and planning process of
retirement and the life changes that this
new phase might bring. The PPA address
financial aspects, family relationships and
private pension, among others, as well as
contemplating the transfer of knowledge to
the employees who will succeed the retired
professionals.
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Diversity
As a publicly held government-controlled
company, our employees are hired through public
service entrance exams, pursuant to the 1988
Federal Constitution, and therefore, the diversity
profile of our employees is random.
In line with our commitments to diversity, we seek
to promote an organizational culture which is fair
and with equal opportunities for all, regardless of
gender identity, sex, skin color/race, ethnicity, age,
sexual orientation, social background, physical or
mental ability. This commitment is set forth in our
Regarding gender equity, the 18-22 PDNG had the
Regarding fair access to opportunities,
goal of maintaining at least the same percentage of
we are in compliance with legislation
women in management positions as the percentage
that encourages the hiring of minorities,
of women in the company (effective workforce).
reserving 20% of the positions offered in
public service entrance exams for black
candidates and people with disabilities.
The goal was exceeded. Women
are 19% in Eletrobras companies
workforce but occupy 21% of
leadership positions.
Code of Ethical Conduct and Integrity and Social
We also exceeded the goal of increasing the
Responsibility Policy.
To enforce it, we have implemented actions to
promote diversity among all our stakeholders
through Eletrobras Companies’ Gender and
Race Committees, and since 2004, we have been
participating in the Gender, Race and Diversity
Committee of the Ministry of Mines and Energy
and Related Entities (Cogemmev), coordinating
participation of women in hierarchical company
positions by at least 10% between April 2016
and April 2018, agreed to the sixth edition of
the Pro-Equity Gender and Race Program, and
we advanced 14.61% in the period. Additionally,
as the main advances in the Program, we also
highlight the implantation of a breastfeeding
room at headquarters and the creation of
awareness workshops on occupations’ gender
and representing the participation of the entities
stereotypes among students of municipal schools.
of the sector.
In 2018, Eletrobras participated and
supported the organization of Fórum
Cultura + Diversidade and invited its
suppliers to participate. The event
brought together large corporations and
entities in debates on a more inclusive
labor market for women, blacks, LGBTIs,
people with disabilities and the elderly.
Learn more at: http://bit.ly/2WbmaW6
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Communication and engagement
GRI 102-43
In 2018, the actions aimed at the internal public that stood out were the
communication campaigns for alignment on issues relevant to the business:
Throughout the year, the production and delivery of corporate
TV products and the intranet (electronic mural and Eletrobras
Newspaper) were maintained, also with an emphasis on
• Dissemination of the Challenge 22 - 2018-2022 PDNG projects’ evolution,
strategic issues.
including a new series of videos with leaders of key master plan initiatives. The
new PDNG intranet section added, until December, 1,599 hits, with a monthly
Eletrobras companies also carried out organizational climate
average of 128 unique users;
• Campaign to inform about the renovation works progress on the new
headquarters in Rio de Janeiro (RJ), with an exclusive section on the intranet
with 2,999 accesses;
surveys, biennially. In the edition 2018, 8,535 employees
participated in the survey, which represented 51.06% adhesion,
with a favorable index of 74.18%, showing an improvement of
7.46% in relation to the last survey. The survey was created
with 83 assertions, distributed in 14 factors, distributed in 4
dimensions: Motivation, People Management, Philosophy of
• Quiz celebrating the 3,000th edition of the Notícias Eletrobras (NE) daily news
Management and Work Environment.
bulletin, with 15 questions about some of the milestones registered by the
media, with 104 participations;
• 2018 Eletrobras Annual Meeting was held, for headquarters’ employees, with
the presence of 415 employees and a lecture by volleyball coach Bernardinho,
with the theme “Excellence: Conquest and Sustainability”; and
•
Execution of communication campaigns integrated with Eletrobras
companies, under the coordination of the holding company, on the evolution
of Eletrobras’ integrity program, two editions of the Consensus Dismissal Plan
(PDC), among others.
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Health and safety at work
GRI 103-1; 103-2; 103-3; 403-2; 403-3; EU16
Among the various activities carried out at the Eletrobras companies,
risks of specific occupational diseases were identified that could
be caused at the power plants due to exposure to noise and high
temperatures and, in the field activities in transmission lines, due the
overload of the upper limbs.
To mitigate negative impacts and to promote occupational health and
safety, we focus on anticipating, identifying, evaluating and controlling
hazards in the workplace and promoting employee health, in accordance
with current legislation and technical, legal and ethical recommendations
made by government bodies and scientific entities.
The developed actions are in line with the guidelines of the People
Management Policy, which determines the continuous maintenance of
good working conditions and employee well-being, as per Eletrobras
companies’ Sustainability Policy.
Our companies also rely on specific contingency plans and all employees
working in risk areas wear individual and collective protection equipment.
These actions comply with the rules and regulations of the Ministry of
Labor and Employment (MTE), the Fire Department, Civil Defense and
environmental entities.
The safety culture is a consolidated value among Eletrobras
companies and it is integrated to all our activities. Providing a safe
working environment with better quality of life for our employees is
a permanent goal, translated by our corporate policies and several
actions developed.
Nuclear power plant in Angra. Eletrobras Eletronuclear collection
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ROBUST AND TRAINED
MANAGEMENT
STRUCTURE
CLOSE DIALOGUE
AND MONITORING
Specialized Occupational Health and
Occupational accident and disease
Safety Engineering Service (SESMT) in the
prevention programs
companies’ facilities and/or strategic
situations
Annual medical examinations
Internal Accident Prevention Committees
Monitoring of employees that carry out
(Cipa) to prevent occupational accidents and
external activities and construction work,
diseases
projects and or service inspection
Ergonomics committee
Environmental Risks Prevention Program
(PPRA) to neutralize the potential risk of
accidents, disease and/or unfavorable
workplace conditions
Internal Accident Prevention Week (Sipat) at
least once a year
Rigorous and specific monitoring of risks
related to nuclear energy at Eletrobras
Eletronuclear workplace, including
Compliance with environmental risks and
safety and emergency plans
hazard standards
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2018 indicators
In 2018, we maintained compliance with the Environmental Risk
and Hazard Standards, as well as the monitoring of employees
performing external activities and physical inspections of
construction works, projects and/or services.
In addition, we continued the work of the Ergonomics Committee,
and the extension of the Occupational Safety and Ergonomics
programs in the Brasília Office.
We reached an accident frequency rate of 2.86 lost-time
accidents per million man-hours of risk exposure in Eletrobras
companies, 28% higher than the rate recorded in 2017 (2.23), not
reaching our target for 2018 (1.38)
The 2019-2023 PDNG has People Appreciation as a strategic
initiative, which includes actions directed to occupational
Our goal for 2019 is to reduce the
accident frequency rate to 1.33 and the
accident severity rate to zero.
Health and Safety indicators
by gender
Injury rate
Occupational disease rate
Lost Days Rate
Absenteeism rate
diseases and work-related accidents prevention in Eletrobras
Fatalities
companies.
Improving safety at work through a prevention culture is one
of our goals for 2019. We have established an initiative in our
master plan to implement accident prevention actions in our work
environments.
Men
Women
4.6
0.1
312.6
5.8
1
3.6
0.0
34.2
6.0
0
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Career and development
Corporate Education should be guided by the following
GRI 103-1; 103-2; 103-3; 404-1, 404-2, EU14
guidelines:
Corporate education management
Our corporate education model aims at
developing employees’ professional skills
and boosting the strategic reach, being
managed by two pillars: the Eletrobras
System Corporate University (Unise) and
the associated Corporate Education Units,
corresponding to each of the companies.
Unise develops general, managerial
and specific skills that are critical to the
viability of the strategy, specific training
in business, dissemination of the culture
and the values of the group. In 2018, 193
educational actions were carried out
by Unise, including actions foreseen in
the Corporate Education Plan (PEC) and
seminars sponsored by Eletrobras.
•
Integrated, cooperative and aligned performance of
Eletrobras companies;
• Design, Structuring and Evaluation of Educational
Programs / Actions;
• Alignment to the People Management Policy of
Eletrobras companies;
•
Employee skills development;
• Organizational culture development;
•
Leadership development and training;
• Appreciation of the educator employee;
• Alignment with the performance management model;
•
•
•
Interface and partnership with corporate libraries;
Internal and external partnerships;
Integration of Corporate Education with Research,
Development and Innovation;
• Continuous improvement of the Educational Model;
• Valuing diversity and promoting equity; and
• Meeting legal requirements related to the
qualification of members of the Board of Executive
Officers, Board of Directors and Supervisory Board.
Living and learning
The Vivendo e Aprendendo
project, carried out
by Eletrobras Chesf in
partnership with the Social
Service of Industry (Sesi),
makes it possible to raise the
employees’ education level,
who wish to join the initiative.
The project contributes
reduce wage and social
inequalities, allowing access
to college, besides generating
improvement in complexity
and agility levels when
performing daily tasks at work.
In all, 148 employees increased
their educations levels through
Living and Learning.
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CORPORATE EDUCATION MANAGEMENT
Career development
2016
2017
2018
GRI 404-3 ; 405-2
Hours of training offered 1,135.8 thousand 777.5 thousand
763.9 thousand
Since 2010, the Eletrobras companies’ Career and Compensation Plan
Investment
R$ 32.9 million
R$ 23.7 million
R$ 25.7 million
(PCR) brings together the guidelines and policies on positions, careers,
compensation and performance, aligning people management policies
Total enrollments
68,827
51,679
50,941
and practices with strategic business drivers, aiming at enhancing the
organizational performance, based on skills and focused on results.
The reduction in hours, investment and enrollment total is a natural
consequence of the reduction in the number of employees, considering the
companies sold and the workforce resizing plans.
The Career and Compensation Plan aims to ensure fairness and equal
treatment regardless of gender, race, color, religion, disability, marital
status, sexual orientation, family situation, age or any other condition.
AVERAGE HOURS OF TRAINING OFFERED IN 2018
.
4
5
6
.
6
9
4
.
7
4
4
.
5
5
4
.
7
3
4
Men
Women
Management
Higher
education
Primary and
secondary
The Performance Management System, within the scope of the Career
and Compensation Plan (PCR), integrates the process of planning,
monitoring, evaluation (goals and competencies) and development
processes, allowing to compare the performance achieved with the
planned, as well as other uses within the company.
In this context, we highlight the performance evaluation interface
with the Corporate Education Plan, Talent and Opportunity Bank,
Succession Plan, Knowledge Management, Merit Distribution and
Career Planning. The SGD improvement, which will be implemented in
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2019, will help Eletrobras companies to
2018 INDICATORS
manage their employees, channeling
their efforts to reach objectives that
In 2018, we carried out several development actions for Eletrobras
guarantee profitability, sustainability,
professionals, in topics related to governance, compliance, auditing,
competitiveness and value creation.
generation, transmission, finance, accounting, among others.
In line with the 2018-22 PDNG, which
Performance evaluation is provided for in the PCR applicable to
incorporated the appreciation of people
employees. It should be clarified that the statistics can be influenced
into the strategy, we have worked
by employees’ dismissal date in the Dismissal Plans, licenses for long
in the last two years to improve the
periods of time, assignment to other agencies and eventual changes in
succession process. In total, more than
the evaluation processes dates.
1,100 managers and potential leaders
of Eletrobras companies underwent an
assessment process, which contributes
to identify potential leaders, to verify if
current managers are suitable in their
functions, to establish succession maps
(mainly dismissal plans), support the
professional improvement and foster
the talent pool and opportunities.
EMPLOYEES WHO UNDERWENT PERFORMANCE
EVALUATION
By gender
76.7%
Men
77.0%
Women
By employee category
81.6%
Management level
79.0%
Higher education
level
69.8%
Primary and
secondary level
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Compensation and Benefits
Group
Strategic guideline of 2019-
2023 PDNG
Indicator
Group 1 - Economic
and Financial Target
(Consolidated)
Group 2 - Economic
and Financial Goals (By
Company)
Group 3 - Operational
Goals (By Company)
Financial Discipline
Consolidated Adjusted Net Income
Financial Discipline
Adjusted Ebitda
Operational Excellence
Regulatory PMSO/PMSO
Sustainable performance
Dow Jones Sustainability Index Global Score
Sustainable performance
Global Performance in the B3 Corporate Sustainability
Index
Operational Excellence
Operating Result / Number of Employees
Operational Excellence
Relative generation availability (DISPGR)
Operational Excellence
Operational Availability of Transmission Lines (DISP.
OLT)
GRI 401-2
Our compensation policy follows
the same guidelines as the Career
and Compensation Plan (PCR) and
the variable compensation practice
is still linked to the Profit-Sharing
Program (PPLR) as long as the
corporate indicators support its
payment.
The PPLR is a variable
compensation instrument linked
to our strategy and uses part of
the indicators in the Business
Performance Target Agreement
(CMDE) to calculate the variable
compensation of employees, as
can be seen in the following table.
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As part of the employee appreciation and
2018 INDICATORS
retention policy, in addition to fixed and variable
compensation, we offer a series of benefits and
advantages determined by law and/or under
a Collective Bargaining Agreement. We also
spontaneously add other benefits based on the
assumptions of our human resources policy.
Among them, we highlight the following:
•
•
funeral allowance;
extended maternity and paternity leave;
• medical care/health insurance and dental
care;
•
complementary pension plan and pension
fund;
• daycare allowance;
•
education allowance;
• meal/food allowance;
•
vacation bonus;
• psychological and pedagogical assistance for
employees and/or dependents with special
needs; and
•
caregiver program to reimburse caregiver
expenses for employees or their dependents.
Ratio for
women/men
compensation
Cepel
Chesf
Amazonas GT
CGTEE
Eletronorte
Eletronuclear
Eletropar
Eletrosul
Furnas
Holding
Itaipu
Management level
Higher education level
Primary and secondary
level
Salary
Compensation
Salary
Compensation
Salary
Compensation
0.83
0.97
1.21
1.06
0.84
0.68
0.99
1.00
1.02
0.85
0.98
0.88
0.88
0.85
0.88
0.83
1.00
1.08
0.95
1.03
0.90
NA
0.95
0.87
0.96
0.89
0.80
1.00
0.99
0.88
0.90
0.97
0.91
0.89
0.78
0.91
0.74
0.80
1.00
1.08
0.86
0.85
0.98
NA
0.58
1.10
1.03
0.96
2.30
1.00
0.51
1.02
1.28
0.85
1.59
1.00
No employee in this
functional level
1.04
1.03
1.06
0.95
1.00
0.81
1.14
NA
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CUSTOMER SATISFACTION
Satisfaction survey
GRI 102-43
The 3rd edition, in 2018, had the participation of Eletrobras CGTEE, Chesf,
Eletronorte, Eletronuclear, Eletrosul, Furnas, Amazonas GT and Cepel, the latter two
being new inclusions in this edition of the survey.
Since 2014, Eletrobras has been conducting a
unified biennial survey on the level of customer
satisfaction with focus on the generation and
transmission business.
The survey uses the Customer Window Quadrant
model as a method to measure the customer
satisfaction of the generation, transmission
business and research, development and
innovation, based on customer perception about
value attributes and level of importance.
RESULTS OF THE 3RD CUSTOMER SATISFACTION SURVEY
86.97%
93.88%
of global satisfaction
with generation, transmission and
research, development and innovation
of importance degree
for customers of the researched
value attributes
Target: 85.31% of satisfaction
EXCEEDED
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ALIGNED SUPPLIERS
GRI 102-9; 102-10; 103-1; 103-2; 103-3; 204-1; 410-1; 412-3
Profile
% of suppliers contracted locally
(in the same region)
Eletrobras companies’ main suppliers are from sectors such
as technology, information technology, telecommunications,
engineering, manufacturing, transportation, resale,
equipment for electrical power generation, consulting in
different areas and cleaning and security services. These
Northeast
North
Southeast
South
33%
32%
77%
27%
various-sized contractors – from micro companies to large
At Eletrobras, critical suppliers are those with
multinationals – are spread throughout Brazil and abroad.
contracts that have a direct impact on the
final quality of its services, the environment,
In 2018, Eletrobras companies’ supply chain had 3,241 new
employees’ health and safety, and human
suppliers contracted, a cost of R$4.4 billion in the year.
rights, as well as those with access to
confidential information, as well as those that
By the end of the year, there were 12,906 contracts in force,
represents high risk to the Company’s integrity.
of which 319 were related to significant investments –
submitted to the approval of the Board of Executive Officers,
in which the asset resulting from these contracts will be
incorporated into the Company’s equity. Of this total, 89.7%
included clauses related to human rights.
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Management
GRI 408-1, 409-1, 103-2
The Company is aware that the
quality of its relationship with
suppliers generates indirect
impacts to society. Therefore,
it believes in the importance of
sharing good practices and aligning
values with these stakeholders as a
way to improve its value creation.
Eletrobras companies work
towards maintaining a close
relationship with their suppliers,
from selection to tracking of their
activities, maintaining a constant
and transparent dialogue and
sharing their ethical principles
throughout the relationship cycle.
Selection
In line with our Supply Logistics Policy and the Supplier Conduct Code, which guide our business
based on internationally recognized management practices, we require a series of commitments
from our suppliers, from the hiring process, with the promotion of sustainability and integrity.
SOCIAL AND ENVIRONMENTAL COMMITMENTS ON SUPPLIER MANAGEMENT
Compliance with environmental standards and legislation related to:
Consuption of natural
resources management
Solid
waste
Liquid
effluents
Atmospheric
emissions
Suppliers undertake not to carry out any practice contrary to the principle of the Code of Ethics
and Conduct, the Corporate Integrity Program and the policies of the Eletrobras companies in
their operations and their production chain.
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Contractual obligations
determine that suppliers are
responsible for knowing and
Monitoring
Contracted suppliers are constantly monitored through
complying, as appropriate, with
management and supervision of the contracts throughout the
the principles and standards
of the Supplier Conduct Code,
as well as the Anti-Corruption
Program of Eletrobras
Companies, available at:
https://bit.ly/2qkypg5).
duration of their relationship with the Company and, if any event
is recorded, an administrative proceeding may be filed leading
to the suspension of their right to participate in public bids with
Eletrobras, and to the possibility of a formal complaint against the
supplier to the Public Prosecutor’s Office.
From the new Regulation on Bids and Contracts, effective
In addition, since April 2018, all
since 2018, suppliers have also begun to fill out a integrity risk
contracting and acquisitions
have been formalized based
assessment form, which maps their relationship with government
officials, their fraud or corruption conviction history and the
on the new Regulation on Bids
existence of a Integrity Program.
and Contracts, which adapts
the contracting guidelines for
Eletrobras companies to that
established in Law 13,303/2016
(State-Owned Companies Act)
and establishes the supplier
From this mapping, we apply an analysis methodology to identify
and classify integrity risk, generating an opinion that indicates
possible alert points to be monitored, as well as the actions that
should be taken for each type of risk (low, medium, high or very
high). For very high-risk cases, for example, the background check
corporate integrity evaluation
service is used.
from the hiring process to its
monitoring during contract
execution.
The consolidation of the integrity management process with
suppliers was recognized through the “Business Ethics Award”
with the Integrity Mechanisms for Third Parties project, won by
the company in 2018.
Maintenance in transmission tower. Eletrobras Chesf /
Severino Silva collection
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Dialogue and engagement
The entire supplier management and
relationship cycle is assisted by Eletrobras
Companies’ Strategic Supply Logistics
Committee (Celse), which:
•
analyzes and disseminates good
sustainable procurement practices
through guidelines, such as
Eletrobras’ Sustainable Bidding
Practices Guide;
•
establishes guidelines, rules and
procedures for contracting processes
in accordance with current legislation;
and
To foster sustainability in the supply chain, our PDNG foresees formal goals of engagement and
relationship with this public:
RESULTS OF THE PDNG 2018-2022 GOALS AND UPDATE TO THE PDNG 2019-2023 GOALS
PDNG 2018-2022 goal
PDNG 2018-2022 goal
PDNG 2018-2022 goal
PDNG 2018-2022 goal
To reach 60% of critical suppliers
trained in anticorruption policies
and procedures in 2018, and
100% by 2022.
To reach 40% of suppliers
willing to adopt practices of
appreciation of diversity in
2018, and 100% of suppliers
in 2022.
To apply the due
diligence form in 60% of
critical suppliers by 2018,
and 100% by 2022.
To reach 60% of
commercial partners
trained in anti corruption
courses.
Status
ACHIEVED with 90% of
critical suppliers trained in
anti-corruption policies and
procedures.
ACHIEVED with 83.4%
of suppliers stimulated
to adopt practices of
valorization and promotion
of diversity.
ACHIEVED with 94%
of critical suppliers
submitted to the due
diligence evaluation.
ACHIEVED with 99%
commercial partners
trained in anti
corruption courses.
•
is responsible for the management
New PDNG 2019-2023 goal
of the Eletrobras Companies’ Supply
80% in 2019 and 100% in 2022.
Logistics Policy.
60% in 2019 and 100% in
2022.
70% in 2019 and 100%
in 2022.
The annual meetings with suppliers are
also a practice aimed at maintaining and
strengthening engagement with suppliers
so that they are involved with the
management and sustainability practices
that permeate our hiring and acquisitions.
PDNG 2019-2023 goals
5% of Tier 2 suppliers assessed for sustainability risk in 2019 and 100% in 2023.
100% of critical suppliers assessed for human rights risk by 2021.
100% of Tier 1 suppliers trained in human rights in 2021.
ACHIEVED with 80%
commercial partners
made aware about
the Integrity Program
(Compliance) of
Eletrobras companies.
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COMMUNITY ENGAGEMENT
GRI 103-1; 103-2; 103-3; 412-2; 413-1; 413-2
Outlook
Local communities can be negatively impacted
social organization and the representatives
mainly by the need for displacement, by changes
appointed by them.
Compliance with this objective is
in the environment around the power plants and
fundamental in all aspects of our activities,
since, from the study stage through to
operations, Eletrobras’ projects can cause
more or less impact, depending on the region
where they will be implemented.
by the interference in the dynamics of indigenous
From a Human Rights point of view, the UN’s
and traditional groups of people.
Sustainable Development Goals (SDGs) were
used as reference for the elaboration of
In order to mitigate and offset these impacts,
other corporate policies, such as Eletrobras
and based on the lessons learned from past
companies’ Social Responsibility, updated in
operations, we always seek to update and renew
2018. The SDG also guide the prioritization
our commitments, already expressed in the
of projects that may be supported by the
Environmental Master Plan and in the Process of
Company, always focused on overcoming
Interaction of the Brazilian Electric Power Sector
inequality and promoting the sustainable
with Society, published in the early 1990s.
development of the local communities where
Eletrobras operates.
One of the objectives of our business
performance is to ensure that the
Eletrobras system projects are drivers of
sustainable development in surrounding
areas, building healthy and long-term
relationships, minimizing negative impacts
and generating value to communities.
In line with the UN Global Compact, the Company
is a signatory, and aligned with its Sustainability,
Environmental, Social Responsibility and
Communication and Engagement with
Stakeholders policies, Eletrobras is seeks to
promote ethical and transparent dialogues with
the purpose of building engagement and qualified
relationships with the communities in which
we operate, recognizing their culture, forms of
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COMMITMENTS IN THE RELATIONSHIP WITH THE COMMUNITIES
OPEN AND PERMANENT
SAFETY AND PROTECTION
AWARENESS OF THE SAFE,
DIALOGUE
OF POPULATIONS IN
EFFICIENT AND RESPONSIBLE USE
EMERGENCIES
OF ENERGY
RESPECT FOR THE VALUES
PROMOTION OF IMPROVED
AND INTERESTS OF EACH
QUALITY OF LIFE
COMMUNITY
RECOGNITION AND RESPECT
FOR THE CULTURE AND FORM
OF SOCIAL
ORGANIZATION OF ALL
IMPACTED COMMUNITIES,
INCLUDING TRADITIONAL AND
INDIGENOUS COMMUNITIES
Eletrobras received the
Human Rights Award
2018, granted by the then
Ministry of Human Rights in
recognition to the Letter Open
from Companies for Human
Rights commitment, signed by
the company and other state-
owned companies.
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During the year, we also invested in
carrying out educational action on human
rights involving professionals from social
responsibility, sustainability and other areas.
Guidelines, mapping and prioritization of the
main human rights risks were prepared in
a workshop organized by Fundação Getúlio
Vargas (FGV) to support the construction of
the Human Rights action plan of Eletrobras
companies, which will be initiated and
concluded in 2019.
Throughout the period, Eletrobras
companies’ employees also underwent
training on the subject, adding 11,021 hours
of training offered to 2,342 employees
(representing 15% of total employees).
In 2018, Eletrobras, the Bolivian state-owned Empresa Nacional de Electricidad (Ende) and
Corporación Andina de Fomento (CAF) began hydroelectric inventory studies in the binational
stretch of the Madeira River and its main tributaries, located in Bolivian and Brazilian territories.
An office was installed in the city of Guajará-Mirim (Rondônia), which will serve as a basis for the
implementation of a Social Communication Plan (PCS) and as a support for technical field studies.
It is the first time that a Social Communication Plan is carried out in the hydroelectric inventory
studies stage.
In 2018, the PCS began mapping stakeholders with the objective of getting to know the social
subjects, visualizing the networks of active relationships in the area of study while identifying the
existing interests, questions, doubts, demands and social conflicts. From the information collected,
it will be possible to rank the most relevant topics for the set of social subjects and to classify the
interested groups in the questions related to the inventory studies that will probably communicate
with the PCS over time. The mapping of stakeholders is an ongoing activity and will be updated
throughout the execution of the work.
On the Brazilian side, in Rondônia (RO) and Acre (AC), in 2018 40 institutional interviews were
held, 2,170 folders were distributed and 133 polling stations were installed to receive claims
from the local population, as well as claims via WhatsApp and telephone. In all, 148 claims were
recorded, all of which were answered. Information about the project was also disclosed at two
regional events, promoted by institutions linked to municipal power and the federal university. PCS
products also subsidize socioeconomic studies of inventory studies.
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Impact management
Displacement of populations and changes
in social dynamics
GRI 102-43; EU20
Since 2015, we have incorporated guidelines on
the displacement of the populations affected by
projects in the power sector to the guidelines on
the relationship with society and environmental
communication of our Environmental Policy.
The guidelines establish, for example, that
Safety
EU21
Contingency
Eletrobras companies rely on Emergency
Response Plans, which establish responsibilities,
measures and effective actions to be taken
during contingency situations. Each project has
a specific, constantly updated contingency plan
that includes social and environmental aspects
related to natural disasters, spills, fire, information
technology issues, workers’ strikes, company
image crisis, among others. Emergency brigades
Drills are performed on a regular
basis and certified by the competent
authorities.
Eletrobras Furnas, Eletronorte e
Eletrosul rely on the Emergency
Response Plans for Transmission Lines,
which establish actions to be taken in
order to restore, in the shortest possible
time, transmission lines, transformers
and other equipment that make up the
transmission networks, using own or
third-party resources, allowing for the
maintenance of the electricity supply.
Eletrobras companies should monitor the evolution
and employees working in areas considered to
of social and economic conditions of the relocating
be at risk are trained to implement such plans in
and the host communities, based on quantitative
emergency cases.
and qualitative studies at least during the period
established by the environmental licenses.
At Eletrobras Eletronuclear, employees undergo
annual drills. At Eletrobras Chesf, the hydroelectric
In addition to our internal guidelines, we comply
power plants have basin flood, control manuals
with legal commitments and obligations during the
with instructions in case of flood events and the
environmental licensing process, such as Federal
Decree 7,342/10 and Interministerial Ordinance
340/12, which deal with the social and economic
assessment of the population affected by dams.
measures that must be taken should they happen.
The emergency plan is established with the
participation of different organizations such as
Civil Defense, Military Police and the Fire Brigade.
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Traditional populations
GRI 411-1
attention to the vulnerable groups such as
communities, we highlight the Interministerial
traditional and indigenous communities.
Ordinance 60/2015 and Normative
In line with its commitments and policies,
Eletrobras seeks to promote ethical and
transparent dialogues with the traditional
populations, more frequently with indigenous
peoples at the area we operate, respecting
their culture, forms of social organization and
acknowledging representatives appointed by
them.
The Eletrobras companies’ Environmental
Committee monitors the topic through the
Indigenous Communities Commission, which is
composed by companies specialists. In 2018, the
relationship guidelines of Eletrobras companies
with indigenous peoples were approved by the
Instructions 2/2015 by the National Indian
Eletrobras companies, as a rule of conduct, adopt
Foundation and 1/2018 by Palmares Cultural
procedures to avoid impacts on indigenous
Foundation, which establish, respectively, the
communities, resulting from the implementation
administrative procedures to be observed
and operation of electricity generation and
in the environmental licensing processes in
transmission lines projects. When necessary, they
which these institutions participate.
adopt procedures to repair the damages suffered
by these communities, as well as support their
cultural development projects.
In addition, Eletrobras companies voluntarily
participate in the Indigenous Business and
Indigenous Peoples Dialogue Initiative from The
Natural Conservancy NGO.
Committee for Incorporation in the Environmental
Legislation
Policy of Eletrobras Companies, which was
approved in 2019.
Also, Eletrobras companies’ Social Responsibility
Policy emphasizes that in the process of building
engagement and qualified relationships with
stakeholders, companies should pay special
Brazilian legislation establishes several
instruments that must be fulfilled at all stages
in the projects’ implementation cycle. Related
to the environmental licensing of projects that
cause socioenvironmental and cultural impacts
to indigenous peoples and lands and quilombola
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Cultural development
The Eastern Kayapó Autonomy Support Plan
(PAAKaL), the second project with the Eastern
Kayapó support projects (PA)
Kayapó / AFP communities, was extended until
April 2019, through an additive term established
In 2018, Eletrobras continued its participation
in a participatory manner. With the deadline
in the projects with the Kayapó indigenous
extension, schedule, budget and work plan were
communities in the Xingu region, in southern Pará.
adjusted.
Comprised by 4,500 indigenous in 40 villages,
the group is considered indirectly impacted by
The main results of these experiments are the
the Belo Monte power plant. The projects were
institutional strengthening of the entities that
developed in partnership with Funai, Norte Energia
represent the Kayapó and execute the projects,
- which provides the necessary financial resources
the inspection and protection of indigenous lands,
- and the representative institutions of the
the promotion of sustainable economic activities
Kayapó - Instituto Kabu, for the Western Kayapó,
and the cultural valorization of the ethnic group.
and Associação Floresta Protegida (AFP), for the
Eastern Kayapó - to better meet the demands of
In addition, these communities have preserved
indigenous communities.
the natural resources of the hydrographic
basin that feeds the Belo Monte power plant in
In April, after negotiations and participatory
southern Pará. Kayapó projects contribute in a
adjusts the work plan, the Kayapó Mekrãgnoti
relevant way to the qualification of the dialogue
Program has started, the third project with
and the relationship between Eletrobras and
the Western Kayapo/Institute Kabu, with five
the communities, strategic stakeholder for the
years duration and total financial contribution
company’s business in the region.
from Norte Energia in the amount of R$ 11.3
million. It is Eletrobras’ responsibility to monitor,
supervise and manage the relationship with the
communities.
Projects to support traditional
indigenous populations
also lead to environmental
preservation, since Kayapó
lands, through which 31% of
the Xingu river flows, have a
93% preservation rate, while
the Xingu basin has a total of
only 50%.
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Waimiri Atroari Indigenous Program (AM),
Company carries out health, education, protection and environmental programs, as well as
Parakanã Program (AM), Terra São Marcos
actions to support local production within the community, focusing on its sustainability. The
Indigenous Program (RR) and Assurini Program
Waimiri Atroari indigenous land has 2.6 million hectares, with a population of 1,917 indigenous
(TO)
people, living in 45 villages.
Eletrobras Eletronorte kept supporting programs
When added, the Waimiri Atroari, São Marcos, Parakanã and Assurini programs received
executed in partnership with Funai in the
the transfer of R$ 23.9 million from Eletrobras Eletronorte, allocated to mitigation and
Parakanã and São Marcos Indigenous Lands,
environmental compensation actions, completing the corrective measures determined by
carrying out actions to develop indigenous
competent bodies.
communities and offset social and environmental
impacts caused by its projects.
In 2018, an agreement was also signed to
implement the Assurini Program, to be developed
over five years with the community of 560
indigenous people (census of 2013) in four
villages, with 21.7 thousand hectares, with the
objective of providing services to assist the
needs pointed out by the community, seeking
development in health, sanitation, education,
culture, leisure, income generation, among other
different aspects.
In the Waimiri Atroari indigenous land, located
in the area of influence of the Balbina HPP in the
state of Amazonas, in operation since 1989, the
The Waimiri Atroari Program is
a benchmark in the sector and
recognized worldwide for its
actions. In 1987, in the beginning of
the program, this indigenous group
underwent a serious depopulation
process and had a total of 374
indigenous people. Currently,
it reaches about 2 thousand
indigenous people.
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In 2018, the Eletrobras companies
participated in the Second
Meeting of the Electric Sector
Working Group, an initiative of the
Indigenous Companies and Peoples
Dialogue Forum. At the time, the
methodology used by the electricity
sector to carry out hydrographic
basin inventory studies, especially
socio-environmental studies, was
presented and discussed with
indigenous leaders. In the year,
there were no incidents of violations
involving rights of indigenous and
traditional peoples in the Eletrobras
companies’ ombudsmen.
Support for the Avá-Canoeiros (GO) and for the
Kaingang (PR)
At Eletrobras Furnas, since 1992, we have supported
the Avá-Canoeiros community and since 2014 the
Kaingang, through food donations, surveillance services,
environmental monitoring and support for local
festivities.
Sanitation in the Bracuhy village (RJ)
In 2018, Eletrobras Eletronuclear started the pilot project
to build evapotranspiration basins at the Karai Kuery
Renda State Indigenous College, located at the Bracuhy
village, in Angra dos Reis (RJ). The aim is to improve
precarious sanitation conditions on the site.
Support for the Avá-Guarani community (PR)
Itaipu Binacional develops the Sustainability of
Indigenous Communities project, with the objectives
of improving the infrastructure of the villages,
strengthening their autonomy and ethnic and cultural
identity and contributing to the appreciation of
traditions.
Native Caiapó. Eletrobras Eletronorte collection
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Development of local communities
We present below Eletrobras companies’ main programs
to promote development in 2018.
We always seek to go beyond complying with legislation and
mitigating impacts. We are committed to promoting the
Volunteer Program
engagement and development of local communities, valuing
the regions surrounding our operations and contributing to the
Linked to the Integrated Communication Committee
improvement of social, economic, educational, environmental and
of Eletrobras Companies, in 2018, the Subcommittee
health conditions.
on Volunteering of Eletrobras Companies was
created, aiming at the alignment and structuring of
In 2018, our private social investment totaled R$ 326.9 million
corporate volunteer programs, for efficient and shared
management.
• 80.4% allocated to social, environmental, cultural and sports
projects, land development, the promotion of citizenship,
The holding company’s Volunteer Program promoted 39
children and adolescent rights, job opportunities and income
actions, in partnership with institutions that help socially
generation, as well as health and food safety in surrounding
vulnerable groups, benefiting more than 1,182 people,
communities;
as well as five campaigns that engaged volunteers and
• 0.2% in the form of donations to the Fund for Children and
employees in initiatives focused on the communities
Adolescents and the National Program to Support Oncological
surrounding the Company’s headquarters.
Care;
• 0.3% in the employees’ mobilization, support and time for
For more information about Eletrobras companies’
voluntary actions;
volunteer programs, please visit their websites:
• 4% in the form of cultural and sports sponsorships; and
Furnas: https://bit.ly/2HiicTi
• 9.9% with investments with own resources:
Itaipu: https://bit.ly/2qspz05
• 1.3% in the form of donations for emergency situations or
public calamity; and
• 3.9% in the form of unusable goods donations for the company.
Chesf: https://bit.ly/2Hu9Aqm
Holding: https://bit.ly/2U6BpcL
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Social and Environmental Action Plan
(PAS)
Agroecology and Fruit Processing Workshop (Eletrobras Eletrosul)
In order to encourage agroecology actions, Eletrobras Eletrosul - in partnership with the State School
PAS is a shared environmental management
Father João Batista Réus, the City Hall and the Regional Association of Education, Development
process created by Eletrobras Chesf, together
and Research (Arede) - held the Agroecology and Fruit Processing Workshop in the municipality
with the communities of the municipalities
of Dezesseis de Novembro (RS). Participants included 73 people, including students, teachers and
that are part of the Paulo Afonso
school staff, who learned about native fruits as an economic and environmental alternative, organic
Hydroelectric Complex, in 2008, and with the
production and a fruit processing workshop.
communities surrounding the Xingó HPP, in
2016. The aim is to develop an environmental
management process capable of minimizing
Community Integration Centers (Eletrobras Furnas)
and/or offsetting the negative impacts and
optimizing the plant’s positive impacts.
In 2018, Eletrobras Furnas signed a financing agreement with the National Bank for Economic
and Social Development (BNDES) to provide funds for the creation of five Community Integration
PAS promotes education as a channel
of social transformation by supporting
Centers in communities of Angra dos Reis and Resende (RJ), Mogi das Cruzes (SP) , Foz do Iguaçu
(PR) and Ibiraci (MG). The goal of the Nuclei is to promote new social coexistence models for local
projects in five courses of action: Social and
development, by supporting the creation of a reference project chosen by the community.
environmental Educommunication Programs;
Environmental Health and Education
Programs; Natural Resource Conservation
and Degraded Areas Recovery Programs;
Institutional Strengthening and Sustainability
Programs; Education, Art, Culture and
Environment Programs.
Caminhos Project (Eletrobras Furnas)
It aims to promote citizenship and the rights of young people and teenagers, using sport as a means
of inserting young people living in communities with vulnerability and social risk in Foz do Iguaçu (PR)
in the Young Apprentice Program. In 2018, 45 young people were referred to the Youth Apprentice
Program, hired in companies in the region.
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Fazenda São Bento Generation of Work and Income Project (Eletrobras Furnas)
Sustainable cities (Itaipu Binacional)
The project seeks to support 13 families in social vulnerability in the municipality of Colinas
The program is an initiative of a network of organizations,
do Sul, (GO), from the promotion of income generation, encouraging the cultivation and
among them Itaipu Binacional as a sponsor, which offers
commercialization of fruits and vegetables with the support of the Regional Development
public managers a complete agenda on urban sustainability,
Fund of Serra da Mesa and Cana Brava.
a set of indicators associated with this agenda and a
database of reference practices in 12 axes:
Work and Income Opportunity Training Program (Eletrobras Furnas)
1. Education for Sustainability and Quality of Life;
Developed in the city of Rio de Janeiro, it aims to train 645 young people and adults in
courses in the areas of beauty, cooking, mechanics, technology, fashion and construction
in order to expand their opportunities to enter the labor market or to set up a business to
generate income, contributing to poverty reduction.
Support to agricultural products and fishermen around the Sobradinho Dam
(Eletrobras Chesf)
The project, developed by Eletrobras Chesf in partnership with Brazilian Agricultural
Research Corporation (Embrapa), seeks to promote inclusive and sustainable economic
growth and generate full and productive employment based on research, technology
transfer and training of technicians, producers and fishermen. Thus, the project
strengthens the infrastructure of agricultural activities, ensuring a level of productivity that
allows the improvement of income of producers and the reproducibility of productive units
of communities in the municipalities surrounding the Sobradinho dam.
2. Culture for Sustainability;
3. Governance;
4. Common Natural Resources;
5. Equity, Social Justice and Culture and Peace;
6. Local Management for Sustainability;
7. Planning and Urban Design;
8. Local, Dynamic, Creative and Sustainable Economy;
9. Responsible Consumption and Lifestyle Options;
10. Better Mobility, Less Traffic;
11. Local Action for Health; and
12. From Local to Global.
Since 2011, Itaipu Binacional has promoted the
dissemination of the program and the training of municipal
technicians in the Western region of Paraná.
Learn more at https://bit.ly/2jpbZXe.
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BELO MONTE: ENERGY GENERATION AND SUSTAINABLE
DEVELOPMENT FOR BRAZIL’S GROWTH
Since the beginning of the technical, economic and socio-environmental feasibility
studies for the Belo Monte hydroelectric project (AHE), more than a decade ago,
the implantation of the hydroelectric plant has been questioned by different
stakeholders for the potential socio-environmental impacts.
Belo Monte will be the largest 100% Brazilian hydroelectric plant in installed
capacity and the third largest in the world.
It is therefore natural and healthy that the implementation of such an enterprise –
among ethnic, cultural and environmental diversity of the Xingu river basin in Pará
- be the subject of constant inquiry and investigation from society.
Against this backdrop, Eletrobras, which has a stake in the project, and Norte
Energia, the consortium responsible for it, have been working with a commitment
to transparency and accountability while also mitigating and minimizing negative
impacts to build an unprecedented positive socio-environmental legacy.
We have created the following special webpage to inform our readers about the key
aspects of value creation of this venture.
In the website dedicated to Belo Monte you may learn, in detail, all the information
about the venture and access a wide range of studies, plans and social and
environmental documentation: http://bit.ly/315xyl9
Jatobá resettlement, in Altamira. North Energy collection
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Our commitment to sustainable development is considered
and reaffirmed in all the different aspects of our work. In
this sense, we continually consider, monitor and evaluate
the socio-environmental aspects of the projects in which we
have a corporate interest.
To contribute to the energy generation in Brazil and to the
sustainable development of the region where it operates,
in the southwest Pará. This is the mission of the Belo
Monte Hydroelectric Power Plant.
At the Belo Monte hydroelectric plant, where we have
49.98% stake in the consortium responsible, Norte Energia,
the commitment is the same. The plant, installed on the
Xingu River, when fully completed, will be the largest 100%
Brazilian hydropower plant, with 24 generating units (UGs)
and an installed capacity of 11,233.1 MW.
Investments in socio-environmental and indigenous programs are impressive: R$
6.3 billion in more than five thousand actions carried out in the five municipalities
neighboring the project, defined in the Basic Environmental Project (PBA),
composed of 117 plans, programs and projects intended to develop and improve
local communities quality of life, as well as environment conservation and the
scientific knowledge expansion on the Amazon.
The venture is paramount to ensure the availability of
clean and renewable energy source in the country meeting
the increasing demand, coupled with a robust process to
mitigate socio-environmental impact and promote the
region’s development.
In terms of total actions carried out, Belo Monte’s PBA is already considered the
largest environmental licensing process accompanied by the Brazilian Institute for
the Environment and Renewable Natural Resources (Ibama).
Moreover, Belo Monte has already generated R$ 1 billion in taxes, 75% of which are
municipal and 35% state, and R$ 82 million in financial compensation for water
resources use per year for the municipalities affected, which will allow city halls
to maintain and to expand all the health, education and sanitation infrastructure
legacy resulting from the Socio-Environmental Programs to the region.
Learn below the main impact on regional development and protection of
indigenous culture.
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QUALITY OF LIFE IN ALTAMIRA AND REGION
• Construction of the sanitary sewage system with 18
• Relocation of 3,6 thousand families, about 23 thousand
thousand home connections to a modern network,
people who lived on stilts, for collective urban
expanding the population served from 14% in 2011,
resettlement, with the construction of 3,850 houses,
before Belo Monte, to 92% in 2018;
supported by all these investments in health, education,
leisure, infrastructure and quality of life;
•
Expansion of the water supply system;
• Construction of three sanitary landfills closing the dumps
• Construction of 30 basic health units (UBS) and
used until then;
three new hospitals;
• Contribution to public policies, with funding from the
• Construction, renovation and extension of
Malaria Control Action Program (PACM), which, in
educational units with 76 construction works;
partnership with state and municipalities, reduced disease
• Urban renewal interventions, such as the
the region recorded 6 thousand cases of malaria per year
revitalization of the main access highway to
and in 2017 the program achieved an unprecedented feat:
Altamira’s urban area, construction of bridges and
for the first time in the history of the region no cases of
footbridges, roads paving and signaling;
malaria with local transmission were recorded; and
cases by 98% in the five municipalities. Before the PACM,
• Creation of three permanent beaches;
•
Support to public safety, with R$ 123 million destined for
• Creation of the Integrated Artisanal Fishing Center
video surveillance cameras, vehicles, helicopters and other
(CIPAR), with a market to sell fish and also other
investments to strengthen the public safety structure.
the government of Pará and reverted to equipment such as
activities related to the fishing sector;
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Commitment to indigenous communities
Main Highlights of the Program
Norte Energia develops a set of 10 programs and 27 projects called the
• No indigenous land was flooded by Belo Monte HPP reservoirs;
Basic Environmental Project - Indigenous Component (PBA-CI), which
serves more than four thousand indigenous people from nine ethnic
• No indigenous village was relocated;
groups that inhabit 12 traditional territories (11 indigenous lands and
one indigenous area) totaling a territory with 5 million hectares.
•
The number of villages increased from 26 in 2010 to 63 in 2018 according
to Funai and the total number of indigenous people increased from 2,100
With actions at the beginning of the program that depended on
to more than 4,000 in the period according to the Special Indigenous
government action, there was an initial delay in its implementation
Sanitary District (DSEI);
until 2015. The National Indian Foundation (FUNAI), however,
considered that the delays did not impede the operation license and
•
18 indigenous schools were built;
demanded the execution of a Term of Commitment with new deadlines
and actions.
Since 2015, therefore, Norte Energia has implemented the program
•
26 basic units of indigenous health were built, equipped and transferred to
the Special Indigenous Sanitary District of Altamira / PA (DSEI);
with no relevant failures.
•
Equipment and vehicles available for the public health agencies that work
with the region’s indigenous population;
Through it, Norte Energia carries out actions and supports public
policies aimed at indigenous communities in conjunction with agencies
•
Construction of eight Territorial Protection Units (UPTs) and three UPTs in
and institutions operating in the region.
hiring process, with 56 professionals hired by Norte Energia to act on these
grounds;
•
Construction of 453 kilometers of roads and access roads to communities,
16 runways and 26 water supply systems; and
•
Projects focused on technical assistance, income generation and family
subsistence.
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XIPAYA, KURUAYA, XIKRIN, JURUNA, ARARA, ASURUNI, ARAWETÉ, PARAKANÃ AND KAYAPÓ
ETHNICITIES REMAIN CULTURALLY ACTIVE IN THE REGION
Legend
Centers
Our Villages
Boa Vista Indigenous Reserve
PBA Village
Aturrara headquarters
Hydrography
Apypenewa
Arara
Arara de VOX
Araweté / Igarapé Ipixuna
Cachoeira Seca
Itunalista (Restricted Use)
Kararao
Kozlinerro
Kutuaya
Pacuicamba
Trincheira Bacaja
Xipaya
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GRI 102-54, 102-47; 102-55
For the Materiality Disclosures Service, the GRI Services have revised that the GRI content index is clearly presented
and the references to Disclosures 102-40 to 102-49 are in line with the appropriate sections in the report body. This
service was carried out in the Portuguese version of the report.
Disclosure
Description
PROFILE
GRI 101: Foundation 2016
GRI 102: General Disclosures 2016
Organizational profile - 2016
Page/Direct Answer
Omissions
102-1
102-2
Name of the organization
Activities, brands, products, and services
Page 15.
Page 15.
102-3
Location of headquarters
102-4
Location of operations
102-5
102-6
102-7
102-8
Ownership and legal form
Markets served
Scale of the organization
Headquartered in Brasília – Distrito Federal: SCN Quadra
06 Torre "A" – Bloco "A" - 6 andar - Shopping IDEscritório
Central no Rio de Janeiro, Rua da Quitanda, 196 - Centro
Hydropower plant in Guiana, transmission systems in
Guyana, French Guiana and Suriname, office & wind
farms in Uruguay, binational hydroelectric (Itaipu) in
Argentina and binational hydroelectric in Bolivia, as well
as main operations in Brazil.
Page 15.
Page 15.
Pages 15, 18, 96, 97, 99 and 130.
Information on employees and other workers
Page 130.
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Significant changes to the organization and its supply chain
Pages 15 and 143.
Page/Direct Answer
Page 143.
Omissions
Disclosure
Description
Supply chain
102-9
102-10
102-11
102-12
102-13
Precautionary Principle or approach
External initiatives
Membership of associations
Strategy and analysis - 2016
102-14
102-15
Statement from senior decision-maker
Key impacts, risks and opportunities
Ethics and integrity - 2016
Page 67.
Pages 21 and 52.
Page 52.
Page 14.
Page 67.
102-16
102-17
Values, principles, standards, and norms of behavior
Pages 25, 55, 56 and 76.
Mechanisms for advice and concerns about ethics
Pages 56, 76 and 180.
Governance - 2016
102-18
102-19
102-20
Governance structure
Delegating authority
Executive-level responsibility for economic, environmental, and social
topics
Page 56.
Page 56.
Page 51.
102-21
Consulting stakeholders on economic, environmental, and social topics
Page 76. In addition to the mechanisms described
throughout the content, we have dedicated two channels
to this end: IR Contact and the IR Ombudsman, both
available on the website: https://bit.ly/2EiQ0dr
102-22
102-23
Composition of the highest governance body and its committees
Pages 56 and 130.
Chair of the highest governance body
Page 56.
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Disclosure
Description
Page/Direct Answer
Omissions
102-24
102-25
102-26
102-27
102-28
102-29
102-30
102-31
102-32
102-33
102-34
102-35
102-36
102-37
Nominating and selecting the highest governance body
Conflicts of interest
Page 56.
Page 84.
Role of highest governance body in setting purpose, values, and strategy Pages 25 and 56.
Collective knowledge of highest governance body
Page 61.
Evaluating the highest governance body’s performance
Pages 25 and 61.
Identifying and managing economic, environmental, and social impacts
Pages 67 and 76.
Effectiveness of risk management processes
Pages 56 and 67.
Review of economic, environmental, and social topics
Page 67.
Highest governance body’s role in sustainability reporting
Pages 3, 48 and 51.
Communicating critical concerns
Pages 76 and 128.
Nature and total number of critical concerns
Remuneration policies
Process for determining remuneration
Page 76.
Page 61
Page 61.
Stakeholders’ involvement in remuneration
Pages 61 and 67.
102-38
Annual total compensation ratio
102-39
Percentage increase in annual total compensation ratio
4.81. Permanent wage types, annual supplementary
bonus, functional bonus were considered.
0.80. Permanent wage types, annual supplementary
bonus, functional bonus were considered.
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Disclosure
Description
Stakeholder engagement - 2016
102-40
List of stakeholder groups
102-41
Collective bargaining agreements
Page/Direct Answer
Omissions
• Workforce / family
• Investors / shareholders / market analysts
• Communities
• Company
• Press / opinion formers
• Partners / sponsors / suppliers
• Governments / parliamentarians / regulators
• Customers / consumers / distributors
Freedom of association is the right of all employees of the
company and all employees of Eletrobras companies are
covered by collective bargaining agreements. In addition
to permanent employees, the Collective Bargaining
Agreement also covers all own and amnesty / reinstated
employees, who are assigned to government agencies.
102-42
102-43
102-44
Identifying and selecting stakeholders
Pages 3 and 128.
Approach to stakeholder engagement
Pages 3, 133, 142 and 150.
Key topics and concerns raised
Page 3.
Identified material aspects and boundaries - 2016
102-45
Entities included in the consolidated financial statements
Todas as empresas:
Cepel, Chesf, Furnas, CGTEE, Eletrosul, Eletronorte, Itaipu,
Amazonas GT, Eletronuclear e Eletropar.
102-46
Defining report content and topic Boundaries
Page 5.
102-47
List of material topics
102-48
Restatements of information
Pages 5 and 163. The material aspects, related to the
material themes, are presented throughout this GRI index.
Restatements of information are pointed out throughout
the text.
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Disclosure
Description
102-49
Changes in reporting
Report profile - 2016
Page/Direct Answer
Omissions
Page 5. The main change is the scope, which in 2018 does
not include the distributors, sold throughout the year.
102-50
102-51
102-52
102-53
Reporting period
Date of most recent report
Reporting cycle
Page 3.
2017
Annual
Contact point for questions regarding the report
sustentabilidade@eletrobras.com
102-54
Claims of reporting in accordance with the GRI Standards
This report has been prepared in accordance with GRI
Standards: Core option
102-55
102-56
GRI content index
External assurance
Page 163.
Pages 3 and 177.
GRI 103: Management approach - 2016
This reference to GRI 103: Management Approach 2016 and Disclosures 103-1, 103-2 and 103-3 apply to all material topics and “topic-specific Standards” referenced
in the GRI content index: GRI 201: Economic Performance 2016, GRI 204: Procurement Practices 2016, GRI 205: Anti-Corruption 2016, GRI 303: Water and Effluents
2018, GRI 304: Biodiversity 2016, GRI 305: Emissions 2016, GRI 401: Employment 2016, GRI 403: Occupational Health and Safety 2016, GRI 405: Diversity and Equal
Opportunity 2016, GRI 406: Non-Discrimination 2016, GRI 407: Freedom of Association and Collective Bargaining 2016, GRI 408: Child Labor 2016, GRI 409: Forced or
Compulsory Labor 2016, GRI 410: Safety Practices 2016, GRI 411: Indigenous Rights 2016, GRI 412: Human Rights Assessment 2016, GRI 413: Local Communities 2016,
GRI 415: Public Policies 2016 and EU Sector Supplement
103-1
Explanation of the material topic and its Boundary
Retention and development of employees: 129
Relationship with communities: 147
Water: 109
Climate Change and Renewable Sources: 121
Biodiversity: 114
Supplier Relationship: 143
Ethical culture: 76
Health and safety: 134
R&D and innovation: 39
Governance and risk: 67
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Disclosure
Description
Page/Direct Answer
Omissions
103-2
The management approach and its components
103-3
Evaluation of the management approach
Retention and development of employees: 129
Relationship with communities: 147
Water: 109
Climate Change and Renewable Sources: 121
Biodiversity: 114
Supplier Relationship: 143
Ethical culture: 76
Health and safety: 134
R&D and innovation: 39
Governance and risk: 67
Retention and development of employees: 129
Relationship with communities: 147
Water: 109
Climate Change and Renewable Sources: 121
Biodiversity: 114
Supplier Relationship: 143
Ethical culture: 76
Health and safety: 134
R&D and innovation: 39
Governance and risk: 67
ECONOMIC PERFOMANCE
GRI 201: Economic performance - 2016
201-2
Financial implications and other risks and opportunities due to climate
change
Pages 67 and 121.
GRI 204: Procurement Practices - 2016
204-1
Proportion of spending on local suppliers
Page 143.
GRI 205: Anti-corruption - 2016
205-1
205-2
Operations assessed for risks related to corruption
Page 76.
Communication and training about anti-corruption policies and
procedures
Pages 67 and 76.
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Disclosure
Description
Page/Direct Answer
Omissions
205-3
Confirmed incidents of corruption and actions taken
ENVIRONMENTAL
GRI 303: Water and Effluents - 2018
Page 76. In 2018 there was a document fraud case in a
bidding process at Eletrobras Furnas, which originated
an administrative misconduct process, filed against
former executives of the company, in which Furnas works
together with the Public Prosecution Office to determine
the facts and responsibilities.
303-1
303-2
303-3
303-4
303-5
Interactions with water as a shared resource
Page 109.
Management of water discharge-related impacts
Page 109. Eletrobras companies do not significantly
affect water sources by withdrawal.
Water withdrawal
Water discharge
Water consumption
Page 109.
Page 109.
Page 109.
GRI 304: Biodiversity - 2016
Significant impacts of activities, products, and services on biodiversity
Page 114.
304-2
304-3
Habitats protected or restored
GRI 305: Emissions - 2016
305-1
305-2
305-3
305-4
305-5
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
Page 114.
Page 125.
Page 125.
Page 125.
Page 125.
Page 125.
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Disclosure
Description
Page/Direct Answer
Omissions
305-6
305-7
SOCIAL
Emissions of ozone-depleting substances (ODS)
Page 125.
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air
emissions
Page 125 e 126.
GRI 401: Employment - 2016
401-1
New employee hires and employee turnover
Page 130.
401-2
Benefits provided to full-time employees that are not provided to
temporary or part-time employees
Page 140. The benefits presented apply to part-time and
full-time contracts as well as to contracts of indefinite
duration.
401-3
Parental leave
Page 130.
GRI 403: Occupational Health and Safety - 2016
403-1
Occupational health and safety management system
100% of the employees of the Eletrobras companies are
represented by health and safety committees
403-2
Hazard identification, risk assessment, and incident investigation
Page 134.
403-3
403-4
Occupational health services
Page 134.
Worker participation, consultation, and communication on occupational
health and safety
All companies in the Eletrobras group present health and
safety topics in 100% of the agreements
GRI 404: Training and Education - 2016
404-1
404-2
Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance
programs
Page 137.
Page 137.
No data by
region or data
related to third
parties, not
available.
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Disclosure
Description
Page/Direct Answer
Omissions
404-3
Percentage of employees receiving regular performance and career
development reviews
Page 138.
GRI 405: Diversity and Equal Opportunity - 2016
405-1
405-2
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men
Page 130.
Page 138.
GRI 406-1: Non-discrimination - 2016
406-1
Incidents of discrimination and corrective actions taken
Pages 80 and 130.
GRI 407: Freedom of Association and Collective Bargaining - 2016
407-1
Operations and suppliers in which the right to freedom of association
and collective bargaining may be at risk
GRI 408: Child Labor - 2016
408-1
Operations and suppliers at significant risk for incidents of child labor
GRI 409: Forced or Compulsory Labor - 2016
409-1
Operations and suppliers at significant risk for incidents of forced or
compulsory labor
There are no own operations with these risks. We have
identified suppliers with contracts with third-party labor
as a potential risk. There is no quantification of total
suppliers. Processes adopted for risk management and
mitigation are described in the Suppliers chapter and in
the Compliance chapter.
Page 144. There are no own operations with these risks.
41 suppliers were identified with potential risk, primarily
those involving outsourcing of labor. Processes adopted
for risk management and mitigation are described in the
Suppliers chapter and in the Compliance chapter.
Page 144. There are no own operations with these risks.
41 suppliers were identified with potential risk, primarily
those involving outsourcing of labor. Processes adopted
for risk management and mitigation are described in the
Suppliers chapter and in the Compliance chapter.
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Disclosure
Description
GRI 410: Security Practices - 2016
Page/Direct Answer
Omissions
410-1
Security personnel trained in human rights policies or procedures
Page 143.
GRI 411: Indigenous Rights - 2016
411-1
Incidents of violations involving rights of indigenous peoples
Page 151.
GRI 412: Human Rights Assessment - 2016
412-2
412-3
Employee training on human rights policies or procedures
Significant investment agreements and contracts that include human
rights clauses or that underwent human rights screening
Page 147.
Page 143.
GRI 413: Local communities - 2016
413-1
413-2
Operations with local community engagement, impact assessments, and
development programs
100%. See 2018 programs description on page 147.
Operations with significant actual and potential negative impacts on
local communities
Page 147.
GRI 415: Public Policy - 2016
415-1
Political contributions
SECTOR SUPPLEMENT
Organizational Profile
In compliance with the legislation, Eletrobras companies
do not support or contribute to political parties or
political campaigns of candidates for elected positions.
This guideline is ratified in the Code of Ethics and
Conduct of Eletrobras companies.
EU-1
EU-2
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
Page 87.
Page 90.
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Disclosure
Description
Page/Direct Answer
Omissions
EU-4
Length of above and underground transmission and distribution lines by
regulatory regime
Page 92.
Availability and Reliability
EU-6
Management approach to ensure short and long-term electricity
availability and reliability
Page 94.
Research and Development
EU-8
Research and development activity and expenditure aimed at providing
reliable electricity and promoting sustainable development
Page 39.
Availability and Reliability
EU-10
Planned capacity against projected electricity demand over the long
term, broken down by energy source and regulatory regime
Page 87.
System Efficiency
EU-11
EU-12
Average generation efficiency of thermal plants by energy source and by
regulatory regime
Page 91.
Transmission and distribution losses as a percentage of total energy
Page 95.
Disponibilidade e Confiabilidade
EU-14
Programs and processes to ensure the availability of a skilled workforce
Page 137.
Employment
EU-16
Policies and requirements regarding health and safety of employees and
employees of contractors and subcontractors
Page 134.
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Disclosure
Description
Local Communities
Page/Direct Answer
Omissions
EU-20
EU-22
Approach to managing the impacts of displacement
Page 150.
Number of people physically or economically displaced and
compensation, broken down by type of project
There was no displacement and/or compensation in 2018
Disaster/Emergency Planning and Response
Contingency planning measures, disaster/emergency management plan
and training programs, and recovery/restoration plans
Pages 75 and 150.
EU-21
Access
EU-30
Average plant availability factor by energy source
Page 91.
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CAPITAL MAP
To guide your reading through our capitals and to know more about each one, use the map below:
FINANCIAL CAPITAL
Financial results pg. 96
HUMAN CAPITAL
Employee development pg. 129
Aligned suppliers pg. 143
INTELLECTUAL CAPITAL
How we create value pg. 21
Strategic planning pg. 25
R&D and Innovation pg. 39
Commitment to sustainability pg. 48
Employee development pg. 129
MANUFACTURED CAPITAL
About Eletrobras pg. 15
Operation pg. 87
NATURAL CAPITAL
Management System pg. 106
Water pg. 109
Biodiversity pg. 114
Climate Change pg. 121
SOCIAL AND RELATIONSHIP CAPITAL
About this report pg. 3
Industry overview pg. 19
Corporate governance pg. 54
Business integrity pg. 76
Dialogue and communication pg. 128
Employee development pg. 129
Customer satisfaction pg. 142
Aligned suppliers pg.143
Community engagement pg. 147
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SDG MAP
To guide your reading through SDG, learning about the main contributions of each aspect of our work with each SDG, use the following map:
Priority SDGs
Other SDGs
Strategy and vision of the future pg. 24 to 52
Performance pg. 86 to 104
Sector programs pg. 101 to 104
Sector programs pg. 101 to 104
Community engagement pg. 147 to 162
Strategy and vision of the future pg. 24 to 52
Employee development pg. 129 to 141
Aligned suppliers pg. 143 to 146
Community engagement pg. 147 to 162
Employee development pg. 129 to 141
Community engagement pg. 147 to 162
R&D and Innovation pg. 39
Responsible Environmental Management pg. 105 to 126
Aligned suppliers pg. 143 to 146
Climate Change pg. 121 to 126
Water pg. 109 to 113
Employee development pg. 129 to 141
Governance and compliance pg. 53
Community engagement pg. 147 to 162
Water pg. 109 to 113
Biodiversity pg. 114 to 120
Sector programs pg. 101 to 104
Employee development pg. 129 to 141
Community engagement pg. 147 to 162
Strategy and vision of the future pg. 24 to 52
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ASSEGURAÇÃO
GRI 102-56
KPMG Financial Risk & Actuarial Services Ltda.
Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A
04711-904 - São Paulo/SP - Brasil
Caixa Postal 79518 - CEP 04707-970 - São Paulo/SP - Brasil
Telefone +55 (11) 3940-1500 - kpmg.com.br
Limited assurance report issued by independent
auditors
To the Board of Directors, Shareholders and Stakeholders
Centrais Elétricas Brasileiras S.A. – Eletrobras
Rio de Janeiro - RJ
Introduction
We have been engaged by Centrais Elétricas Brasileiras S.A.
(“Eletrobras” or “Company”) to apply limited assurance procedures
on the sustainability information disclosed in 2018’s Annual Report,
related to the year ended December 31st, 2018.
Responsibilities of Eletrobras’s Management
The Management of Eletrobras is responsible for adequately preparing and presenting
the sustainability information in the Annual Report 2018 in accordance with the
Standards for Sustainability Report of Global Reporting Initiative – GRI (GRI-Standards),
as well as the internal controls determined necessary to ensure this information is free
from material misstatement, resulting from fraud or error.
Independent auditors’ responsibility
Our responsibility is to express a conclusion about the information in the Annual
Report 2018 based on a limited assurance engagement conducted in accordance
with the Standards for Sustainability Report of Global Reporting Initiative - GRI (GRI-
Standards) and the methodology developed globally by KPMG for assurance of social
and environmental information disclosed in sustainability reports denominated
KPMG Sustainability Assurance Manual - KSAM, applicable to historical non-financial
information.
These standards require compliance with ethical requirements, including independence
ones, and the engagement is also conducted to provide limited assurance that the
information disclosed in the Eletrobras’s Annual Report 2018, taken as a whole, is free
from material misstatement.
A limited assurance engagement conducted in accordance with the Standards for
Sustainability Report of Global Reporting Initiative - GRI (GRI-Standards) and the KPMG
Sustainability Assurance Manual - KSAM consists mainly of questions and interviews
with the Management of Eletrobras and other professionals of the Company involved
in the preparation of the information disclosed in the Annual Report 2018 and use of
analytical procedures to obtain evidence that enables us to reach a limited assurance
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conclusion about the sustainability information
(b) understanding and analysis of disclosed
(e) analisys of whether the performance
taken as a whole. A limited assurance engagement
information related to material aspects
indicators omission and justification are
also requires additional procedures when the
management
independent auditor acknowledges issues which
reasonable to be accepted associated to
aspects and topics defined as material in
may lead them to believe that the information
(c) analysis of preparation processes of the Annual
the materiality analisys of the Company;
disclosed in the Annual Report 2018 taken as a
Report 2018 and its structure and content,
whole could present material misstatement.
based on the Principles of Content and Quality
We believe that the information, evidence and
of the Standards for Annual Report of Global
results we have obtained are sufficient and
The selected procedures were based on our
Reporting Initiative - GRI (GRI-Standards);
appropriate to provide a basis for our limited
understanding of the issues related to the
assurance conclusion.
compilation, materiality and presentation of the
(d) evaluation of non financial indicators selected:
information disclosed in the Annual Report 2018,
on other engagement circumstances and also on
• understanding of the calculation methodolody
our considerations regarding areas and processes
and procedures for the compilation
associated with material sustainability information
of indicators through interviews with
Scope and limitations
The procedures applied to a limited assurance
engagement are substantially less extensive
than those applied to a reasonable assurance
disclosed where relevant misstatement could exist.
management responsible for data preparation;
engagement. Therefore, we cannot provide
The procedures consisted of:
reasonable assurance that we are aware of all
(a) engagement planning: considering the material
data and interviews for qualitative information
a reasonable assurance engagement, which
aspects for Eletrobras’s activities, the relevance
and their correlation with indicators disclosed
aims to issue an opinion. If we had conducted
•
application of analytical procedures regarding
the issues that would have been identified in
of the information disclosed, the amount of
in the Annual Report 2018;
quantitative and qualitative information and
the operational systems and internal controls
•
analysis of evidence supporting the disclosed
that served as a basis for preparation of the
information;
information in the Eletrobras’s Annual Report
2018. This analysis defined the indicators to be
•
visits to Eletrobras’s operations and to the
checked in details;
corporate office for application of these
procedures, and items (b) and (c);
a reasonable assurance engagement, we
may have identified other issues and possible
misstatements within the information
presented in the Annual Report 2018.
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Nonfinancial data is subject to more
inherent limitations than financial
Conclusion
Based on the procedures carried out, described earlier in this report, we have not identified any relevant
data, due to the nature and diversity
of the methods used to determine,
calculate or estimate these data.
Qualitative interpretation of the
data’s materiality, relevance and
information that leads us to believe that the information in the 2018 Sustainabilityl Report of Eletrobras is not
fairly stated in all material aspects in accordance with the Standards for Annual Report of Global Reporting
Initiative - GRI (GRI-Standards), as well as its source records and files.
accuracy are subject to individual
São Paulo, May 8th, 2019
assumptions and judgments.
Additionally, we have not examined
KPMG Financial Risk & Actuarial Services Ltda.
data related to prior periods, to
evaluate the adequacy of policies,
practices and sustainability
performance, nor future
projections.
Ricardo Algis Zibas
Principal
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ACKNOWLEDGMENTS
GRI 102-3; 102-17
Eletrobras – Centrais Elétricas Brasileiras S.A. has several channels
Whistleblower Channel
open for contact with stakeholders.
www.eletrobras.com/canaldenuncia/
Headquarter
Rua da Quitanda, 196 - Centro - Rio de Janeiro/RJ
CEP: 20091-005
Phone: +55 (21) 2514-5151
Branches
Eletrobras offices abroad:
- Cone Sul (Montevidéu – Uruguai)
Av. Luis Alberto de Herrera 1.248 Torre 2, oficina 311, CP – 11.300
Contact Us – Eletrobras Website > Contact Us
Investor Relations (IR)
Website – www.eletrobras.com
Facebook – www.facebook.com/Eletrobras
Phone: +55 (21) 2514-6331 ou +55 (21) 2514-6333
Fax: +55 (21) 2514-5964
YouTube – www.youtube.com/user/SistemaEletrobras
Website – www.eletrobras.com.br/elb/ri
Twitter – @Eletrobras
Instagram - @eletrobrasoficial
LinkedIn – www.linkedin.com/company/eletrobras
IR Contact – invest@eletrobras.com
Ombudsman RI - ombudsman-ri@eletrobras.com
Depositary Institution and Administrator of the Stock Portfolio
Ombudsman
Eletrobras
Rua da Quitanda, 196/4º andar - Centro - Rio de Janeiro/RJ
Banco Bradesco S.A.65
CEP: 20091-005
Phone: +55 (21) 2514-4526/5895
www.eletrobras.com/ouvidoria
ouvidoria@eletrobras.com
Responsible person: Tathiana Martins dos Santos Silva
President of the Ethics Committee: Andrea Rosa Villar
Share and Custody Department
Phone: +55 (11) 3684-9441
Fax: +55 (11) 3684-3811
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For any enquires about the technical terms in this publication,
Management and Data Collection
please access the Eletrobras Electric Power Dictionary, available
IGS Relat System
at: Eletrobras>Agência Eletrobras de Notícias>Comunicação
Institucional
GRI 102-53
GRI indicators collection, consulting, writing and translation
RICCA Sustentabilidade
More information about the Report, please email:
Graphic project, layout and editing
sustentabilidade@eletrobras.com
RICCA Sustentabilidade
Acknowledgments
Photos
The Annual Report is the result of the effort of the Eletrobras
Alessandra Nunes
companies team. We appreciate the participation and
Alexandre Marchetti
commitment of all.
General Coordination
Strategy, Business Management and Sustainability
Editorial Center
Communication and Institutional Relations of Eletrobras and
RICCA Sustentabilidade
Cláudio Ribeiro
Jorge Coelho
Jorge Luís da Fonseca
Nilton Rolin
Paulo Martins
Roberto Rosa
Severino Silva
Sustainability Indicators Center and Assurance Report
provided the necessary information for the creation of the 2018 Annual
Executive Committee on Sustainability of Eletrobras Companies
Report and all stakeholders that participated in our research on the material
We would like to thank all Eletrobras companies’ professionals who
topics and substantially contributed to this work.
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ANNEX I: CONTRIBUTION TO SDGS
Prioritized SDG
Our commitment to the 2030 Agenda included the prioritization of 5 SDGs in 2017, for which we highlight the main efforts and results to follow:
The regular monitoring and analysis of the performance of Eletrobras companies against the agreed indicators and targets for each of the Sustainable
Development Goals (SDG) defined as priorities allowed to create action plans, identify positive and negative impacts and promote and sustain value creation
for stakeholders.
Reporting on the implementation of the 2030 Agenda in Eletrobras companies is a strategic tool to support decision-making processes and stimulate
organizational development, reinforcing commitment to sustainability and to the SDG.
Discover below our contribution to each SDG.
Ensure access to affordable, reliable, sustainable and modern energy.
Eletrobras has an electric matrix with 95.2% of clean energy. It acts as the executor of the Light for All Program, which provided 16.4 million Brazilians with
access to electricity from the National Incentive Program for Alternative Sources, which already generated 97.7 MWh of clean and renewable energy sources
and the National Energy Conservation Program. In 2018 Procel saved 23 million kWh and avoided the emission of 1.70 million tons of CO2 equivalent.
Learn more on page 101 of our report and see below the relationship of our business with this SDG.
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SDG Goal
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Related SDG
Impacted Capital
Stakeholders
Main results 2018
Availability of energy
for all, with less risk of
socio-environmental
impact
1, 2, 3, 7, 9, 10, 13,
14, 15
Human and Social and
Relationship; Natural;
Manufactured
Society; Government
/ Parliamentarians,
Regulatory Bodies
Contribution
to sustainable
development
1, 2, 3, 4, 5, 6, 7, 8, 9,
10, 11, 12, 13, 14, 15,
16, 17
Social and
Relationship,
Financial, Intellectual,
Human, Natural and
Manufactured
7.1 - By 2030, ensure universal
access to affordable, reliable and
modern energy services.
Safety and reliability
in operation (energy
safety)
9, 11
Social and
Relationship and
Manufactured
Contracts at fair prices
(sustainable)
1, 8, 9, 10
Financial and Social
and Relationship
Society, Community,
Government /
Parliamentarians
and Regulatory
Bodies
Society, Community,
Government /
Parliamentarians
and Regulatory
Bodies
Society, Government
/ Parliamentarians,
Regulatory Bodies
and Customers
R$ 3.8 billion invested in
generation and transmission
R$ 1.401 billion paid as CFURH
and royalties
3.0 million connections for the
Luz Para Todos Program
184 million MWh of energy
generated and 68 thousand
new connections of the Luz Para
Todos Program.
9.3 million MWh generated in
Proinfa in 2018 and 97.7 million
since the beginning, in 2012.
Management of 1,994 Union
assets (goods taken over and
expropriated).
98.81% availability in wind farms
and 96.7% in hydroelectric
plants
99.5% availability on
transmission lines
Operational Availability of
99.66% Transformers
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
Availability of energy
for all, with less risk of
socio-environmental
impact
1, 2, 3, 7, 9, 10, 13,
14, 15
Human, Social and
Relationship, Natural
and Manufactured
Society, Government
/ Parliamentarians e
Regulatory Bodies
7.2 - By 2030, increase
substantially the share of
renewable energy in the global
energy mix.
Partnership in Public
Policy Management
1, 2, 3, 8, 9, 12, 13,
17
Social and
Relationship,
Financial,
Intellectual, Natural,
Manufactured e
Human
Government /
Parliamentarians
and Regulatory
Bodies
Research,
Development and
Innovation
8, 9
Intellectual
Society
R$ 337.0 million invested in R&D
Investment in generation
expansion from renewable
sources
95.2% from clean sources in the
energy matrix
Energy conservation
13
7.3 - By 2030, double the global
rate of improvement in energy
efficiency.
Partnership in Public
Policy Management
1, 2, 3, 8, 9, 12, 13,
17
Intellectual and
Natural
Society
Social and
Relationship,
Financial,
Intellectual, Natural,
Manufactured e
Human
Government /
Parliamentarians
and Regulatory
Bodies
22.987 billion kWh/year of
energy saved and by Procel
initiatives
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
7.3a - By 2030, enhance
international cooperation
to facilitate access to
clean energy research and
technology, including renewable
energy, energy efficiency
and advanced and cleaner
fossil-fuel technology, and
promote investment in energy
infrastructure and clean energy
technology.
7.3b - By 2030, expand
infrastructure and upgrade
technology for supplying
modern and sustainable energy
services for all in developing
countries, in particular least
developed countries, small island
developing States, and land-
locked developing countries, in
accordance with their respective
programs of support.
Research,
Development and
Innovation
1, 7, 8, 13
Intellectual
Society
Partnership in Public
Policy Management
1, 2, 3, 8, 9, 12, 13,
17
Social and
Relationship,
Financial,
Intellectual, Natural,
Manufactured e
Human
Government /
Parliamentarians
and Regulatory
Bodies
R$ 59.3 million invested in R&D
for renewable sources
Improvement
to the country’s
infrastructure
17, 9
Participation in
Structural Projects
9
Social and
Relationship,
Manufactured e
Financial
Social and
Relationship and
Manufactured
Government /
Parliamentarians e
Regulatory Bodies
Society, Government
/ Parliamentarians e
Regulatory Bodies
R$ 3.8 billion invested in
generation and transmission
Partnership in Public
Policy Management
1, 2, 3, 8, 9, 12, 17
Social and
Relationship,
Financial,
Intellectual, Natural,
Manufactured and
Human
Government /
Parliamentarians
and Regulatory
Bodies
Expansion of 1,3636 MW per
year in installed generation
capacity in the last six years
Installed capacity corresponding
to 30.5% of the Country’s total
Inventory Studies in
Development;
Feasibility Studies on Generation
Projects under development;
Feasibility Studies on
Transmission Projects under
development;
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Promote inclusive and sustainable economic growth, employment and decent work for all.
We achieved a profitability of 23.8% in relation to our shareholders’ equity, contributing to the country’s economic growth. We have prioritized, in our
critical complaints matrix, the treatment of complaints related to human rights violations, aiming to reach the target of 100% of complaints handled by
2020. In addition, committed to diversity, we reached the goal of women in management positions, surpassing the percentage of women in the company
while intending to reduce the wage inequality level.
SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
9, 16
Financial
8.1 Sustain per capita
economic growth in
accordance with national
circumstances and, in
particular, at least 7 per
cent gross domestic product
growth per annum in the
least developed countries
Financial return
on invested
capital
Distribution of
Dividends
Contribution
to sustainable
development
1 to 17
Investors, shareholders
and market analysts,
Government /
Parliamentarians and
Regulatory Bodies
Investors, shareholders
and market analysts,
Government /
Parliamentarians and
Regulatory Bodies
Society, Community,
Government /
Parliamentarians and
Regulatory Bodies
Financial
Social and
Relationship,
Financial,
Intellectual,
Human, Natural and
Manufactured
8.2 Achieve higher levels
of economic productivity
through diversification,
technological upgrading
and innovation, including
through a focus on high
value added and labor-
intensive sectors
Tariff
moderateness
- Energy at
affordable prices
7, 9
Research,
Development and
Innovation
7, 9
Social and
Relationship e
Financial
Society, Government /
Parliamentarians and
Regulatory Bodies
Intellectual
Society
ROE (Net Income / Shareholders’ equity)
of 23.84%
R$ 33 billion in market value
R$ 1,401 million paid as financial
compensation for water use and royalties
(in the case of Itaipu)
Net Revenue per employee of R$ 1.75
thousand
Operating Income / Net Revenue of 0.56
Teleassistance in 13 transmission and
transformation facilities
9% reduction in transmission losses
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RELATIONSHIPS
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
8.4 Improve progressively,
through 2030, global
resource efficiency
in consumption and
production and endeavor
to decouple economic
growth from environmental
degradation, in accordance
with the 10-year framework
of programs on sustainable
consumption and
production, with developed
countries taking the lead
8.5 By 2030, achieve full and
productive employment and
decent work for all women
and men, including for
young people and persons
with disabilities, and equal
pay for work of equal value
Partnership in
Public Policy
Management
7, 9
Social and
Relationship,
Financial,
Intellectual, Natural,
Manufactured e
Human
Government /
Parliamentarians and
Regulatory Bodies
Employment
and income
generation
1, 2, 4, 9, 10
Human and Social
and Relationship
Workforce and family,
Community
Professional
Growth / Capacity
Building
1, 2, 4
Human and
Intellectual
Workforce and family
0.4% increase in the administrative
consumption from water supply network
3.4% reduction in own energy
consumption for use in administrative
units.
1.13% reduction in the consumption of
fossil fuels of the terrestrial vehicle fleet
9.3 million MWh generated by Proinfa
in 2018 and 97.7 million MWh since the
beginning of the program in 2012
15,658 employees
Employee satisfaction index of 74.18%
Reduction of pay inequality: the highest
wage is 12.3 times higher than the
lowest salary, a difference that has been
reduced, approaching to the goal of being
less than 10 times by 2020
763,900 hours of training per year
Promotion of
Diversity
5, 10, 12
Social and
Relationship, Human
and Manufactured
Workforce and Family
and Society
83.4 % of Tier 1 suppliers stimulated
to adopt valorization and promotion of
diversity practices
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
8.6 By 2020, substantially
reduce the proportion of
youth not in employment,
education or training
Private social
investment
1, 4, 13
Promotion of
culture, sport and
events
3, 4
Social and
Relationship
Social and
Relationship
Society
Society
Private Social Investment of R$ 326.9
million
1,199 trainees and 598 apprentices
Fostering respect
for human rights
4, 9, 10, 12, 16
Social and
Relationship and
Manufactured
Society, Partners,
Sponsors and Suppliers
90% of critical vendors trained in anti-
corruption policies and procedures
8.7 Take immediate and
effective measures to
eradicate forced labor, end
modern slavery and human
trafficking and secure the
prohibition and elimination
of the worst forms of child
labor, including recruitment
and use of child soldiers,
and by 2025 end child labor
in all its forms
Supplier training
4, 5, 10, 12, 13, 16
Human, Social and
Relationship and
Manufactured
Partners, Sponsors
and Suppliers
Fostering a more
sustainable
supply chain
5, 8, 10, 12, 16
Human; Social
and Relationship,
Manufactured,
Financial e Natural
Partners, Sponsors
and Suppliers
99% of trading partners trained in anti-
corruption policies and procedures
84% of suppliers stimulated to adopt
valuation practices and promotion of
diversity
Prioritizing handling of human rights
complaints violations in the criticality
matrix
Human Rights Award received from the
Federal Government (Open Letter from
Companies for Human Rights)
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
8.8 Protect labor rights and
promote safe and secure
working environments
for all workers, including
migrant workers, in
particular women migrants,
and those in precarious
employment
Quality of life
Health and
safety
promotion
Supplier
training
3
3
Human and Social
and Relationship
Workforce and family
Human
Workforce and family,
Partners,
Sponsors and
Suppliers
4, 5, 10, 12, 13, 16
Human, Social and
Relationship and
Manufactured
Partners, Sponsors
and Suppliers
Fostering a more
sustainable
supply chain
5, 8, 10, 12, 16
Human, Social
and Relationship
Manufactured,
Financial e Natural
Partners, Sponsors
and Suppliers
Absenteeism index of 6.0 for women and
5.8 for men
Employee Satisfaction Index in the
Organizational Climate Survey of 74.18%
6.8% turnover rate for men and 7.7% for
women
2.86 accidents per million hours of risk
exposure
84% of suppliers stimulated to adopt
practices of valorization and promotion
of diversity
Build resilient infrastructure, promote sustainable industrialization and foster innovation
One of the pillars of our PDNG is operational excellence, and we strive to generate excellence throughout the value chain. For this purpose, we set targets to
reduce our own consumption of energy for use in administrative units by 0.2%, invested in R&D+I the equivalent to 1% of the Net Operating Revenue (ROL),
reduced the administrative consumption of water from the supply network by 0.3% and reduced the consumption of fossil fuels of the land-based fleet by 0.2%.
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
9.1 Develop quality, reliable,
sustainable and resilient
infrastructure, including
regional and transborder
infrastructure, to support
economic development and
human well-being, with a
focus on affordable and
equitable access for all
Availability of
energy for all, with
less risk of socio-
environmental
impact
Biodiversity
Conservation
3, 7, 8, 11, 13, 14, 15
and 16
Improvement
to the country’s
infrastructure
9 and 17
Natural,
Manufactured, Social
and Relationship and
Human
Social and
Relationship,
Manufactured and
Financial
Society, Community,
Government /
Parliamentarians
and Regulatory
Bodies
Society, Government
/ Parliamentarians e
Regulatory Bodies
Support for 9 million hectares of
conservation units, indigenous lands
and archaeological sites, located in the
main Brazilian biomes.
9% reduction in transmission losses
Feasibility studies totaled 18,870 MW
of installed generation capacity in
2018
1, 2, 3, 7, 9, 10, 13,
14, 15
Human, Social and
Relationship, Natural
and Manufactured
Society, Government
/ Parliamentarians e
Regulatory Bodies
Average of 1,363 MW added in
installed generation capacity since
2013
Populations
relocation
1, 3, 9 and 11
Social and
Relationship
Community
Participation in
Structural Projects
7
Social and
Relationship and
Manufactured
Government /
Parliamentarians e
Regulatory Bodies
Safety and
reliability in
operation (energy
safety)
7 and 11
Social and
Relationship;
Manufactured
Society, Community;
Government /
Parliamentarians,
Regulatory Bodies
R$ 3.8 billion invested in generation
and transmission
We participated in the deployment
of 2,450 km of transmission lines
(Considering% of interest in SPEs).
Emission intensity of 0.247 tCO2e / R$
thousand, exceeding the goal of 0.330
tCO2e / (R$ thousand) of 2018
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
Contribution
to sustainable
development
1 to 17
Social and Relationship,
Financial, Intellectual,
Human, Natural and
Manufactured
Society, Community,
Government /
Parliamentarians and
Regulatory Bodies
Tariff
moderateness
- Energy at
affordable prices
7 and 9
Social and Relationship
and Financial
Contracts at fair
prices (sustainable)
7 and 16
Financial, Social and
Relationship
Financial return on
invested capital
8 and 16
Financial
Receiving
/ reliability
confidence
7, 8, 11 and 16
Financial, Social and
Relationship, Natural
and Human
Society, Government
/ Parliamentarians
and Regulatory
Bodies
Society; Government
/ Parliamentarians;
Regulatory Bodies
and Customers
Investors,
shareholders and
market analysts,
Government /
Parliamentarians
and Regulatory
Bodies
IInvestors,
shareholders and
market analysts,
Society, Government
/ Parliamentarians,
Regulatory Bodies
and Customers
95.2% of clean sources in the energy
matrix
R$ 1.401 billion paid as CFURH and
royalties
ROE (Net income / Shareholders’
equity) of 23.84%
Teleassistance in 13 transmission and
transformation facilities.
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
Biodiversity
Conservation
13 to 15
Natural
Society
Employment and
income generation
1,2, 4, 9 10
Human, Social and
Relationship
Predictability of
Hires
1 to 3, 12 and 16
Manufactured, Social
and Relationship
Workforce and
Family and
Community
Workforce and
Family and
Community
Fostering respect
for human rights
8, 10 and 16
Social and
Relationship
Society
9.2 Promote inclusive and
sustainable industrialization
and, by 2030, significantly
raise industry’s share of
employment and gross
domestic product, in line
with national circumstances,
and double its share in least
developed countries
Support for 9 million hectares of
conservation units, indigenous lands
and archaeological sites, located in the
main Brazilian biomes.
15,658 employees, to whom it
distributed R$ 6.5 billion in added value
in the year.
Prioritizing handling of human rights
complaints violations
R$ 4.4 billion in expenses with 12,906
contracts in force.
Human Rights Award 2018, granted
by the then Ministry of Human Rights
in recognition of the Open Letter from
Companies for Human Rights.
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
9.4 By 2030, upgrade
infrastructure and retrofit
industries to make them
sustainable, with increased
resource-use efficiency and
greater adoption of clean
and environmentally sound
technologies and industrial
processes, with all countries
taking action in accordance
with their respective
capabilities
Improvement
to the country’s
infrastructure
7
Natural; Manufactured Society
Private social
investment
1, 4 and 13
Social and
Relationship
Society
Partnership in
Public Policy
Management
1 to 3, 7, 8, 12, 13
and 17
Social and
Relationship, Financial,
Intellectual, Natural,
Manufactured and
Human
Government /
Parliamentarians
and Regulatory
Bodies
Availability of
energy for all, with
less risk of socio-
environmental
impact
1 to 3, 7, 9, 10, 13
and 15
Human and Social and
Relationship, Natural
and Manufactured
Society, Government
/ Parliamentarians
and Regulatory
Bodies
0.4% increase in the administrative
consumption of water supply network
3.4% reduction in own energy
consumption for use in administrative
units
1.13% reduction in the consumption
of fossil fuels of the terrestrial vehicle
fleet
Private Social Investment of R$ 326.9
million.
Estimate of approximately R$ 8 billion
with hiring expenses in 2019.
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
9.5 Enhance scientific
research, upgrade the
technological capabilities
of industrial sectors in all
countries, in particular
developing countries,
including, by 2030,
encouraging innovation
and substantially increasing
the number of research and
development workers per
1 million people and public
and private research and
development spending
Research,
Development and
Innovation
1, 7, 8 and 13
Intellectual
Society
Private social
investment
Private social
investment
1, 4 and 13
Social and
Relationship
13 to 15
Natural
Society
Society
1.4% of Net Revenue invested in R&D+I
Private Social Investment of R$ 326.9
million.
Support for 9 million hectares of
conservation units, indigenous lands
and archaeological sites, located in the
main Brazilian biomes.
R$ 337.0 million invested in R&D
Take urgent action to combat climate change and its impacts
We are committed to a sustainable performance and we want to be recognized as a Generation and Transmission company that is socially,
environmentally and financially responsible. Our main contribution in this regard is to have a 95.2% energy generation matrix made up of clean and
renewable energy sources. In addition, by 2018, we had the goal of reducing total greenhouse gas emissions by Net Operating Revenue (ROL) to 0.33 and
we reached a total of 0.25.
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RESPONSIBLE
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MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main results 2018
Safety and reliability
in operation (energy
safety)
Availability of energy
for all, with less risk of
socio-environmental
impact
7, 9 and 11
Financial, Natural; Human
Society, Government /
Parliamentarians and
Regulatory Bodies
1 to 3, 7, 9, 10, 13 to
15
Human and Social and
Relationship, Natural and
Manufactured
Society, Government /
Parliamentarians and
Regulatory Bodies
Contribution
to sustainable
development
1 to 17
Social and Relationship,
Financial, Intellectual,
Human, Natural and
Manufactured
Society, Community,
Government /
Parliamentarians and
Regulatory Bodies
13.1 Strengthen
resilience and
adaptive capacity
to climate-related
hazards and natural
disasters in all
countries
Brand and business
reputation appreciation
16
Social and Relationship
Investors, shareholders and
market analysts,
Government /
Parliamentarians, Regulatory
Bodies, Customers, Partners,
Sponsors and Suppliers
13.3 Improve
education,
awareness-raising
and human and
institutional
capacity on climate
change mitigation,
adaptation, impact
reduction and early
warning
Private social
investment
Promotion of culture,
sport and events
1, 4 and 13
Social and Relationship
Society
3, 4, 8, 9 and 13
Social and Relationship
Society
Partnership in Public
Policy Management
1 to 3, 8, 9, 12 and 17
Supplier training
4, 5, 8, 9, 12 and 13
Social and Relationship,
Financial, Intellectual,
Natural, Manufactured
and Human
Government /
Parliamentarians and
Regulatory Bodies
Human, Social and
Relationship and
Manufactured
Partners, Sponsors and
Suppliers
Emission intensity of 0.247
tCO2e / R$ thousand,
exceeding the goal of 0,330
tCO2e / (R$ thousand) of
2018
95.2% of clean sources in the
energy matrix
Maximum Score on Sest
Governance Indicator Level I
of Excellence
Maximum Score on Sest
Governance Indicator Level I
of Excellence
Company listed in the B3
Corporate Sustainability
Index
Private social investment of
R$ 326.9 million
83.4% of suppliers made
aware on the sustainability
aspects
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Promote just, peaceful and inclusive societies
One of the pillars of our PDNG is Governance and Business Integrity Enhancement, through strengthening internal controls and governance to ensure
integrity in the business and throughout its value chain. So, we set training, engagement and evaluation of integrity and ethics goals among our employees,
partners and suppliers.
SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main Results 2018
16.1 Significantly
reduce all forms
of violence and
related death rates
everywhere
Fostering respect
for human rights
8 to 10
Social and
Relationship
Society
90% of critical vendors trained in anti-
corruption policies and procedures
99% of trading partners trained
in anti-corruption policies and
procedures
Supplier training
4, 5, 8, 10, 12
and 13
Human, Social and
Relationship and
Manufactured
Partners, Sponsors and
Suppliers
84% of suppliers stimulated to
adopt practices of valorization and
promotion of diversity
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PROFILE
STRATEGY AND
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RESPONSIBLE
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RELATIONSHIPS
GRI CONTENT INDEX
SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main Results 2018
Ethical, transparent
and equal
relationship
Integrity
(ethical, legal
and transparent
conduct)
Social and
Relationship
Investors, shareholders and
market analysts, Press and
Opinion Leaders
Human and Social and
Relationship
Investors, shareholders and
market analysts, Press and
Opinion Leaders
16.5 Substantially
reduce corruption
and bribery in all their
forms
ProfessionalGrowth
/ Capacity Building
4 and 8
Human and Social and
Relationship
Workforce and family
94% of critical Tier 1 suppliers with
active contract who were submitted to
Due Diligence process
Approval of the Anti-Corruption Policy
90% of critical vendors trained in anti-
corruption policies and procedures
99% of trading partners trained
in anti-corruption policies and
procedures
96% of employees trained in anti-
corruption policies and procedures
Supplier training
4, 5, 8, 10, 12
and 13
Human, Social and
Relationship and
Manufactured
Partners, Sponsors and
Suppliers
Maximum score in Governance index
of Sest (IG-Sest)
Fostering a more
sustainable supply
chain
5, 8, 10, 12
and 16
Human, Social
and Relationship,
Manufactured,
Financial and Natural
Partners, Sponsors and
Suppliers
Maximum score in the International
Transparency Survey
Winner of the Business Ethics Award
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main Results 2018
16.6 Develop
effective, accountable
and transparent
institutions at all
levels
Partnership in
Public Policy
Management
1 to 3, 7 to 9, 12, 13
and 17
Supplier training
4, 5, 8, 10, 12 and 13
Fostering a more
sustainable supply
chain
5, 8, 10, 12 and 16
Predictability of
hires
4,9, 10 and 12
Social and
Relationship, Financial,
Intellectual, Natural,
Manufactured and
Human
Human, Social and
Relationship and
Manufactured
Human, Social
and Relationship,
Manufactured,
Financial and Natural
Social and
Relationship and
Manufactured
Financial return on
invested capital
8 and 9
Financial
Brand and business
reputation
appreciation
13
Social and
Relationship
Integrity
(ethical, legal
and transparent
conduct)
Social and
Relationship
Government /
Parliamentarians and
Regulatory Bodies
Partners, Sponsors and
Suppliers
Partners, Sponsors and
Suppliers
Partners, Sponsors and
Suppliers
Investors, shareholders and
market analysts; Government
/ Parliamentarians and
Regulatory Bodies
Investors, shareholders and
market analysts,
Government /
Parliamentarians
Regulatory Bodies,
Customers, Partners,
Sponsors and Suppliers
Investors, shareholders and
market analysts,
Government /
Parliamentarians
Regulatory Bodies,
Customers, Partners,
Sponsors and Suppliers
ROE (Net Income / Shareholders’
Equity) of 23.84%.
Winner of the Business Ethics Award.
90% of critical suppliers trained
in anti-corruption policies and
procedures.
99% of trading partners trained
in anti-corruption policies and
procedures.
96% of employees trained in anti-
corruption policies and procedures.
Management of 1,994 Union assets
(goods taken over and expropriated).
Maximum Score on Sest Governance
Indicator Level I of Excellence.
Company listed in the B3 Corporate
Sustainability Index
R$ 8.15 billion in the 2019 Annual
Acquisition Plan
Investment Plan of R$ 30.2 billion
foreseen in the 2019-2023 PDNG
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SDG Goal
Value creation
Related SDG
Impacted Capital
Stakeholders
Main Results 2018
16.7 Ensure
responsive, inclusive,
participatory and
representative
decision-making at all
levels
16.10 Ensure
public access to
information and
protect fundamental
freedoms, in
accordance with
national legislation
and international
agreements
Contribution
to sustainable
development
1 to 17
Participatory
dialogue
1 to 17
Social and
Relationship,
Financial, Intellectual,
Human, Natural and
Manufactured
Society, Community,
Government /
Parliamentarians and
Regulatory Bodies
Social and
Relationship, Financial,
Intellectual, Human
and Natural
Society, Community,
Government /
Parliamentarians and
Regulatory Bodies
4,241 claims received at the
Ombudsman’s Office, 93% of which
were concluded, and 595 in the
Ombudsman, investor relations
channel.
Ethical, transparent
and equal
relationship
Social and
Relationship
Investors, shareholders and
market analysts and the Press
and Opinion Makers
Partnership in
Public Policy
Management
1 to 3, 7 to 9, 12, 13
and 17
Social and
Relationship, Financial,
Intellectual, Natural,
Manufactured and
Human
Government /
Parliamentarians and
Regulatory Bodies
683 requests for information, relating
to the Access to Information Act,
in 2018, 98% answered and 2% in
process to be answered.
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CONNECTION WITH THE OTHER SDG
The actions developed by Eletrobras for the prioritized SDGs, whether in its facilities or in the territories of coexistence, present high connectivity with the
other Sustainable Development Goals, reinforcing the integration of the 2030 Agenda. See below the main goals of the other SDGs connected to Eletrobras’
businesses.
Take urgent action to
combat climate change
12
15
17
14
11
10
13
1
2
4
6
5
3
Affordable and clean energy
14
12
11
10
1
15
17
2
5
6
7
4
3
17
14
1
3
2
4
12
11
10
5
6
8
15
13
Decent work and
economic growth
Peace, justice and
strong institutions
10
12
15
14
1
17
2
16
11
6
3
4
5
15
17
14
5
9
6
12
11
12
3
4
10
Industry, Innovation and
Infrastructure
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Main SDG 1 Goals that are related to Eletrobras business
Main SDG 3 Goal that is related to Eletrobras business
(areas of influence)
(areas of influence)
1.1) By 2030, eradicate extreme poverty for all people
3.4) By 2030, reduce by one third premature mortality
everywhere, currently measured as people living on less than
from non-communicable diseases through prevention and
$1.25 a day.
treatment and promote mental health and well-being.
1.2) By 2030, reduce at least by half the proportion of men,
Main SDG 4 Goals that are related to Eletrobras business
women and children of all ages living in poverty in all its
(areas of influence)
dimensions according to national definitions.
1.4) By 2030, ensure that all men and women, in particular
and adults who have relevant skills, including technical
the poor and the vulnerable, have equal rights to economic
and vocational skills, for employment, decent jobs and
4.4) By 2030, substantially increase the number of youth
resources, as well as access to basic services, ownership and
entrepreneurship.
control over land and other forms of property, inheritance,
natural resources, appropriate new technology and financial
4.7) By 2030, ensure that all learners acquire the knowledge
services, including microfinance.
and skills needed to promote sustainable development,
including, among others, through education for sustainable
Main SDG 2 Goal that is related to Eletrobras business
development and sustainable lifestyles, human rights, gender
(areas of influence)
equality, promotion of a culture of peace and non-violence,
global citizenship and appreciation of cultural diversity and of
2.1) By 2030, end hunger and ensure access by all people,
culture’s contribution to sustainable development.
in particular the poor and people in vulnerable situations,
including infants, to safe, nutritious and sufficient food all
year round.
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Main SDG 5 Goals that are related to Eletrobras business
(areas of influence)
Main SDG 10 Goals that are related to Eletrobras business
5.1) End all forms of discrimination against all women and girls
everywhere.
(areas of influence)
10.1) By 2030, progressively achieve and sustain income
growth of the bottom 40% of the population at a rate higher
5.5) Ensure women’s full and effective participation and equal
than the national average.
opportunities for leadership at all levels of decision-making in
political, economic and public life.
10.2) By 2030, empower and promote the social, economic and
political inclusion of all, irrespective of age, sex, disability, race,
Main SDG 6 Goals that are related to Eletrobras business
ethnicity, origin, religion or economic or other status.
(areas of influence)
6.3) By 2030, improve water quality by reducing pollution,
protection policies, and progressively achieve greater equality.
eliminating dumping and minimizing release of hazardous
chemicals and materials, halving the proportion of untreated
Main SDG 11 Goals that are related to Eletrobras business
wastewater and substantially increasing recycling and safe
(areas of influence)
10.4) Adopt policies, especially fiscal, wage and social
reuse globally.
6.4) By 2030, improve water quality by reducing pollution,
affordable housing and basic services and upgrade slums.
eliminating dumping and minimizing release of hazardous
chemicals and materials, halving the proportion of untreated
11.4) Strengthen efforts to protect and safeguard the world’s
wastewater and substantially increasing recycling and safe
cultural and natural heritage.
11.1) ) By 2030, ensure access for all to adequate, safe and
reuse globally.
6.6) By 2020, protect and restore water-related ecosystems,
including mountains, forests, wetlands, rivers, aquifers and
lakes.
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11.5) By 2030, significantly reduce the number of deaths and
12.6) Encourage companies, especially large and transnational
the number of people affected and substantially decrease
companies, to adopt sustainable practices and to integrate
the direct economic losses relative to global gross domestic
sustainability information into their reporting cycle.
product caused by disasters, including water-related disasters,
with a focus on protecting the poor and people in vulnerable
12.7) Promote public procurement practices that are
situations.
sustainable, in accordance with national policies and priorities.
11.6) By 2030, reduce the adverse per capita environmental
12.8) By 2030, ensure that people everywhere have the
impact of cities, including by paying special attention to air
relevant information and awareness for sustainable
quality and municipal and other waste management.
development and lifestyles in harmony with nature.
Main SDG 12 Goals that are related to Eletrobras business
Main SDG 14 Goals that are related to Eletrobras business
(areas of influence)
(areas of influence)
12.2) By 2030, achieve the sustainable management and
14.1) By 2025, prevent and significantly reduce marine
efficient use of natural resources.
pollution of all kinds, in particular from land-based activities,
including marine debris and nutrient pollution.
12.4) By 2020, achieve the environmentally sound
management of chemicals and all wastes throughout their life
14.2) By 2020, sustainably manage and protect marine and
cycle, in accordance with agreed international frameworks,
coastal ecosystems to avoid significant adverse impacts,
and significantly reduce their release to air, water and soil in
including by strengthening their resilience, and take action for
order to minimize their adverse impacts on human health and
their restoration in order to achieve healthy and productive
the environment.
oceans.
12.5) By 2030, substantially reduce waste generation through
14.3) Minimize and address the impacts of ocean acidification,
prevention, reduction, recycling and reuse.
including through enhanced scientific cooperation at all levels.
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Main SDG 15 Goals that are related to Eletrobras business
countries on favorable terms, including on concessional
(areas of influence)
and preferential terms, as mutually agreed.
15.1) By 2020, ensure the conservation, restoration
17.14) Enhance policy coherence for sustainable
and sustainable use of terrestrial and inland freshwater
development.
ecosystems and their services, in particular forests, wetlands,
mountains and drylands, in line with obligations under
17.16) Enhance the global partnership for sustainable
international agreements.
development, complemented by multi-stakeholder
partnerships that mobilize and share knowledge,
15.2) By 2020, promote the implementation of sustainable
expertise, technology and financial resources, to support
management of all types of forests, halt deforestation, restore
the achievement of the sustainable development goals in
degraded forests and substantially increase afforestation and
all countries, in particular developing countries.
reforestation globally.
15.5) Take urgent and significant action to reduce the
private and civil society partnerships, building on the
degradation of natural habitats, halt the loss of biodiversity
experience and resourcing strategies of partnerships.
17.17) Encourage and promote effective public, public-
and, by 2020, protect and prevent the extinction of threatened
species.
15.9) By 2020, integrate ecosystem and biodiversity values into
national and local planning, development processes, poverty
reduction strategies and accounts.
Main SDG 17 Goals that are related to Eletrobras business
(areas of influence)
17.7) Promote the development, transfer, dissemination and
diffusion of environmentally sound technologies to developing
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ANNEX II: PDNG 2019-2023 GOALS
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Relative generation
availability – DISPGR
Operational
Availability of
Transmission Lines –
DISPOLT
Index
0.888
0.923
0.995
0.933
1.000
Goal Achieved
%
-
99.92
99.90%
99.82%
99.82%
Goal Achieved
"Global Indicator
(Generation + Sale)"
Index
-
-
1.04
0.90
0.95
Goal Achieved in 2018. The
indicator is now part of the
2018-2022 PDNG.
Preventive action in order to meet the
availability of generation determined
by the regulatory body.
Performing preventive maintenance,
in search of transmission business
efficiency. The targets for transmission
performance indicators consider the
aging of transmission assets, which
in many cases exceed 30 years of
service, which directly affects the
periodicity and duration of scheduled
maintenance.
This project is being developed
to make the management of
energy commercialization more
efficient, through the promotion
of transparency, integration and
improvement of the workflow between
Eletrobras companies.
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Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Reduction in
Significant
Deficiencies and
Material Weaknesses
%
60%
88%
68%
95%
100%
The goal was not achieved
mainly due to structural
changes such as the
implementation of the
unified ERP system for all
Eletrobras companies and
the implementation of the
Shared Services Center,
which will lead to continuous
improvements from the next
cycle.
Employee
satisfaction
Index
71.10
71.10
74.18
70.92
72.76
Goal Achieved
Accident frequency
(with leave)
No. of
Accidents
per million
hours
of risk
exposure
2.08
2.22
2.86
1.38
1.33
Maturity in project
management
Index
-
-
2.33
-
2.49
Goal not achieved. It is
observed the increase in
total records, related to the
greater awareness and; the
increase in hours of exposure
to risk, due to the increase in
the number of installations
in the production system
(plants, substations and
transmission lines).
The global maturity of
Eletrobras companies was
measured for the first time
in 2018.
Project under development for the
implementation of the Process Control
system, in conjunction with controls
optimization.
Occupational Health and Safety
Program, with actions directed to the
prevention of occupational diseases
and accidents at work in Eletrobras
companies, considering employees and
outsourced workers.
Occupational Health and Safety
Program, with actions directed to the
prevention of occupational diseases
and accidents at work in Eletrobras
companies, considering employees and
outsourced workers.
Improve project management in
Eletrobras Companies
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Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
GHG emissions
from own TPPs
for net generated
energy (tCO2e/ MWh)
GHG emissions from
the use of fossil fuels
in the vehicle fleet
Transformer
Operational
Availability -
DISPOTR
%
0.91
0.76
0.67
0.75
tCO2e
12,965
12,285
12,141
12,248
1% reduction in
relation to the
previous year
We reduced by 12% GHG
emissions from our own TPPs
for net generated energy
(tCO2e / MWh).
0.3% decrease
over the
previous year
We reduced our GHG
emissions from the use of
fossil fuels in the vehicle fleet
by 1.2%.
%
99.47% 99.68% 99.66%
99.40%
99.40%
Goal Achieved
Weaknesses
Remediation Control
%
80%
91%
69%
95%
95%
The goal was not achieved
mainly due to structural
changes such as the
implementation of the
unified ERP system for all
Eletrobras companies and
the implementation of the
Shared Services Center,
which will lead to continuous
improvements from the next
cycle.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
Performing preventive maintenance,
in search of the transmission business
efficiency.
Continuous Improvement of the
Internal Control Environment.
Result of Management
Testing (certified
Companies)
%
NA
10.0% NA
7.0%
7.0%
The result for 2018 is not
available.
Continuous Improvement of the
Internal Control Environment.
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Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Supplier Due Diligence
Exposed to Fraud and
Corruption Risk
Employees trained
in anti-corruption
policies and
procedures
Suppliers exposed to
fraud and corruption
risks made aware
regarding the
Integrity Program
(Compliance) of
Eletrobras companies
Trade partners made
aware regarding the
Integrity Program
(Compliance) of
Eletrobras companies
%
%
%
%
-
-
94%
60%
70%
Goal Achieved in 2018. The
indicator is now part of the
2018-2022 PDNG.
Consolidation of Eletrobras companies'
Integrity Program.
16%
74%
96%
100%
100%
Goal Achieved in 2018. The
indicator is now part of the
2018-2022 PDNG.
Consolidation of Eletrobras companies'
Integrity Program.
-
-
-
-
90%
60%
80%
Goal Achieved in 2018. The
indicator is now part of the
2018-2022 PDNG.
Consolidation of Eletrobras companies'
Integrity Program.
99%
60%
80%
Goal Achieved in 2018.
Consolidation of Eletrobras companies'
Integrity Program.
Number of fatalities
(employees + third-
parties)
Numerical
2
1
1
0
0
We had a fatality in 2018
and we will focus our efforts
to ensure safety to our
employees and third-oarties.
Occupational Health and Safety
Program, with actions directed to the
prevention of occupational diseases
and accidents at work in Eletrobras
companies, considering employees and
outsourced workers.
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Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Management
positions held by
women
%
20.0%
21.0%
21.1%
21.0%
21.0%
Goal Achieved in 2018.
To continue the Eletrobras Gender
Equity Program. Maintain our
commitment to gender equity and
respect for human rights, as well
as to the UN Women Women's
Empowerment Principles.
Reports of human
rights violations
Resolved
%
-
-
18%
To address,
by 2020,
100% of
allegations
of human
rights
violations
received.
To address, by
2020, 100% of
allegations of
human rights
violations
received.
We are on track to reach
our goal by 2020. The
consolidated result for 2018
(18%) demonstrates the
challenge we will face to
reach our commitment.
Eletrobras prioritized the theme in
its complains' criticality matrix. This
initiative comprises the list of actions
for the constant improvement in the
human rights violations complains
handling process, received up to 2020.
Wage Difference
times
-
-
12.30
To reach, by
2020, the
value of up
to 10x.
To reach, by
2020, the value
of up to 10x.
We're on the right path. The
consolidated result indicates
that the highest salary is still
12.3 times higher than the
lowest salary. This difference
is still greater than the target
set for 2020, equal to or less
than 10 times. However, it
should be noted that there
has already been a significant
reduction compared to the
result in the first half of the
year and a trend towards a
reduction of the difference
has been confirmed. The
indicator is now part of the
2018-2022 PDNG.
Our people performance management
system (SGD) is in the process of being
updated, being one of the actions
of our Business and Management
Master Plan, which will, among other
objectives, reduce wage inequalities.
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Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Reduction in power
consumption for
the administrative
activity from the
public distribution
network (MWh)
Reduction in fossil
fuel consumption
from vehicle ground
fleet (GJ)
Reduction in water
supply network
consumption in
administrative
activity
Tier 1 suppliers
stimulated to
adopt valorization
and promotion of
diversity practices
%
8.3%
5.9%
3.4%
0.2%
0.2%
%
-
5.1%
1.15%
0.2%
0.2%
%
11.8%
11.1%
-0.4%
0.3%
0.3%
%
-
-
83.40%
40%
60%
Goal Achieved in 2018.
Reduction of 3.4% in own
electricity consumption for
use in administrative units.
Goal Achieved in 2018. The
companies that presented
the highest fuel reduction
rates have implemented
Energy Efficiency Programs
and conscious consumption.
Goal not achieved in 2018.
Even considering the
implementation of Conscious
Consumption programs
by the companies, there
was an increase in water
consumption in relation to
the previous year, mainly due
to some leaks, which were
solved at the end of the year.
This consolidated result
exceeds the 40% target for
2018, showing that most
companies are advanced on
this issue, suggesting that
the 100% target would be
reached well before 2022.
The indicator is now part of
the 2018-2022 PDNG.
Implementation of Energy Efficiency
and conscious consumption Programs.
Implementation of Energy Efficiency
and Conscious Consumption Programs.
Implementation of Conscious
Consumption Program.
The consolidated result indicates that
83.4% of the Tier 1 suppliers with
contracts in force in 2018 already took
some action to stimulate the valuation
and promotion of diversity. The main
stimulus action used by Eletrobras
companies continues to be the
adoption of clear contractual clauses
on the subject, constituting an efficient
action with the 2,532 suppliers
stimulated this year.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
Tier 2 suppliers
Evaluated on
Sustainability Risk
%
Critical Suppliers
Evaluated on Human
Rights Risks
%
Partners in Joint
Venture Evaluated in
HR Risk %
%
Tier 1 suppliers
Trained in Human
Rights %
%
Employees trained in
Diversity and Human
Rights
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Analysis of
results 2018
2019 Goals -
Initiatives in progress
2019
5%
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Evaluate, by
2021, 100%
of Critical
Suppliers, on
Human Rights
Risks
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Evaluate, by
2022, 100% of
Joint Venture,
on Human
Rights Risks
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Train, by 2021,
100% of Tier
1 suppliers, on
Human Rights
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Train, by
2021, 100% of
Employees, in
Diversity and
Human Rights
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Promote actions aimed at developing
the human rights issue in the relations
with the various stakeholders of
Eletrobras companies. This is one of
the initiatives of our Business and
Management Master Plan.
Promote actions aimed at developing
the human rights issue in the relations
with the various stakeholders of
Eletrobras companies. This is one of
the initiatives of our Business and
Management Master Plan.
Promote actions aimed at developing
the human rights issue in the relations
with the various stakeholders of
Eletrobras companies. This is one of
the initiatives of our Business and
Management Master Plan.
Promote actions aimed at developing
the human rights issue in the relations
with the various stakeholders of
Eletrobras companies. This is one of
the initiatives of our Business and
Management Master Plan.
Promote actions aimed at developing
the human rights issue in the relations
with the various stakeholders of
Eletrobras companies. This is one of
the initiatives of our Business and
Management Master Plan.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Participation of clean
energy sources (solar,
wind, hydro, nuclear)
in the company’s
energy matrix
%
93.6%
94.8% 95.2%
94.6%
94.6%
Goal Achieved
Investment in R&D+I
/ ROL Holding
%
1.5%
0.8%
1.4%
1.0%
1.0%
Total GHG emissions
/ Rol
tCO2e/(R$
thousand)
0.350
0.295
0.247
0.330
0.181
The result achieved in 2018
of 1.4% exceeded the 1.0%
target, demonstrating our
investment in research,
development and innovation
above the sector regulatory
limits.
The result of 0.247 tCO2e
/ (R$ thousand) exceeded
the target of 0.330 tCO2e
/ (R$ thousand) in 2018,
confirming the trend of
reducing total emissions /
ROL since 2016.
Adjusted Scope 1
emissions
Adjusted Scope 2
GHG emissions
%
%
-
-
-
-
-
-
-
-
1% reduction in
relation to the
previous year
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
1% reduction in
relation to the
previous year
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
Maintain the contribution to the
expansion of the Brazilian energy
system through clean and/or
renewable sources.
Measure return on R&D+I Projects;
Develop the Culture of Innovation.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
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ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
GHG emissions from
the electric power
consumption of the
public distribution
network for the
administrative
activity
Coverage Expansion
of the Scope 3 GHG
Emission Sources
%
-
-
-
%
5
5
5
-
-
1% reduction in
relation to the
previous year
No target was set for this
indicator in 2018, and it
was inserted as a strategic
indicator based on the 2019-
2023 PDNG.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
Include 2 new
sources in the
GHG emissions
inventory by
the year 2023
We maintained, for the year
2018, the same range of
sources of greenhouse gas
emissions from Scope 3.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
Total NOx Emissions
(t/year)
10,707
8,052
4,645
24,821
24,821
Total SOx Emissions
(t/year)
26,761
15,722
11,344
27,127
27,127
We reduced our total
nitrogen oxide emissions
by 42% and remained
well below the reference
value, considering the
characteristics of our plants
and the requirements of
the current environmental
legislation
We reduced our total sulfur
oxide emissions by 28% and
remained well below the
reference value, considering
the characteristics of our
plants and the requirements
of the current environmental
legislation
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
213
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Total PM Emissions
(t/year)
4,364
1,565
908
4,229
4,229
Fugitive emissions
of SF6
(tCO2e)
19,292
18,494
32,576
157,371
157,371
We have reduced our total
particulate matter by 42%,
and we remain well below the
reference value, considering
the characteristics of our
plants and the requirements
of the current environmental
legislation
We increased our total SF6
emissions by 76%, but we
still remain well below the
reference value, considering
the characteristics of our
plants and the requirements
of the current environmental
legislation
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
We have in our project portfolio a
specific one to develop actions to
reduce the consumption of fossil fuels,
scope 1, 2 and 3 GHG emissions and
the emissions of other pollutants and
wastes.
Accident frequency
Rate of Third-Parties
(with leave)
No. of
Accidents
per million
hours
of risk
exposure
3.86
3.54
2.32
-
Reduce the
frequency rate
of third-parties
(with leave) in
relation to the
previous year
We present a reduction in the
accident frequency rate of
third-parties in the last two
years. In 2018 we reduced the
accident rate by 34%.
Occupational Health and Safety
Program, with actions directed to the
prevention of occupational diseases
and accidents at work in Eletrobras
companies, considering employees and
outsourced workers.
214
ANNUAL REPORT 2018 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND
VISION OF THE FUTURE
GOVERNANCE AND
COMPLIANCE
PERFORMANCE
RESPONSIBLE
ENVIRONMENTAL
MANAGEMENT
RELATIONSHIPS
GRI CONTENT INDEX
Indicator Name
Unit
History
2016
2017
2018
Goal
2018
2019
Analysis of
results 2018
2019 Goals -
Initiatives in progress
Energy saved by
Procel initiatives
Billion
kWh/year
15.2
21.2
23.0
23.8
25.7
Partially achieved goal, with a
8% increase in the amount of
energy saved.
Eletrobras has been investing in
actions to fight Procel waste and
energy efficiency. The energy results
obtained by the program actions
contribute to the efficiency of the
goods and services, as well as allow the
postponement of investments in the
electric sector, reducing environmental
impacts. Thus, the indicator is
adequate to monitor the contribution
to the achievement of SDG 7, goal 7.3,
being the main performance evaluation
indicator for the National Program for
the Conservation of Electric Energy
(Procel).
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ANNUAL REPORT 2018