ANNUAL REPORT
2019
CONTENTS
1. INTRODUCTION
About this publication
Highlights
Message from the Management
Covid-19 Pandemic
Industry context
2. CORPORATE PROFILE
Eletrobras
How we create value
Acknowledgments
03
6. GRI CONTENT INDEX
7. SDG MAP
8. ASSURANCE
21
ANNEXES
CREDITS
169
182
185
189
213
3. STRATEGY AND VISION FOR THE FUTURE 33
Strategic planning
Management
Commitment to sustainability
4. CORPORATE GOVERNANCE AND ETHICS 74
Corporate governance
Business ethics and integrity
5. CAPITAL PERFORMANCE
Financial capital
Manufactured capital
Intellectual capital
Social and relationship capital
Natural capital
Human capital
92
2
INTRODUCTION
3
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ABOUT THIS PUBLICATION
GRI 102-49, 102-50
This is the 19th consecutive edition of our
Annual Report, published to present our strategy,
performance and commitment to sustainable
development to all our stakeholders, including all
Eletrobras companies. The report presents our
performance between January 1 and December
31, 2019.
The disclosures* in this publication represent the
companies in the generation and transmission
segment, which make up 100% of our turnover.
The numbers of the financial statements of
December 31, 2019 still registered an influence
from the distribution business, considering
that the transfers of shares of the remaining
companies were carried out on March 18, 2019
(Eletrobras Distribuição Alagoas) and April 10, 2019
(Eletrobras Distribuição Amazonas). However, due
to the sale itself being completed in 2018, this
business will not be covered in this publication.
For the purpose of calculating indicators,
whenever necessary and to preserve
comparability, we will make disclaimers about
what is and is not included.
Responsibilities and approval | GRI 102-32
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 our
companies worked on the preparation of the publication and the body, in its review, believes that it
provides a balanced and appropriate presentation of matters that have, or could have, a material effect
on our ability to create value.
We approach the various themes following the coherence of the Eletrobras Value Creation Model (see
page 27), starting from the external context in which we operate, going through our corporate profile and
our activities, as well as our strategy, corporate governance and management of risks and opportunities
- which permeate and guide our business -, and culminating in our performance, treated by capital
(financial, manufactured, intellectual, social and relationship, natural and human).
Our various stakeholders are invited to review this report and provide feedback on our performance and
its disclosure on the value generation process.
José Guimarães Monforte
Chairman of the Strategy, Governance and Sustainability Committee
Chairman of the Board of Directors of Eletrobras
* The term “disclosures” is used in the English version of this
Report, substituting the term “indicators” in its Portuguese
version, to better represent the GRI Materiality Disclosures
Service requisites.
4
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Reporting practices
Useful reading tools
Our report is prepared based on the best global
corporate sustainability management and
reporting practices:
Global Reporting Initiative (GRI) - Standards
2016*, with the exception of the Water material
theme disclosures, which already follow the
review published at the end of 2018 (this report
has been prepared in accordance with the GRI
Standards: Core option); GRI 102-54
Principles of the United Nations (UN)
Global Compact;
Sustainable Development Goals (SDGs);
Integrated Reporting (IR) Framework; and
Management Report of the Union Court of
Auditors (TCU).
In addition to the linear fluency of this publication, at the end of the report you will find two reading
possibilities, guided by:
GRI Content Index (page 169)
Index that describes each GRI disclosure**, indicating
the reasons for omission, when applicable, additional
information and listing the page on which it is reported.
Learn more about on the GRI website.
SDG Map (page 182)
Map that indicates the SDGs related to the themes
addressed throughout the report and with contents
that support reaching the SDGs, the relationship being
established through the indication of the pages.
Learn more about the SDGs on the United Nations
Brazil website.
* The term “version” used in the Portguese version of this Report, was excluded in its English version, to better represent the GRI Materiality Disclosures Service requisites.
** The term “disclosure” is used in the English version of this Report, substituting the term “indicator” in its Portuguese version, to better represent the GRI Materiality Disclosures Service requisites.
5
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Reliability of the information
GRI 102-56
The information published in this report was assured by an independent third party, as directed by the
Executive Board and the Board of Directors and in accordance with international verification parameters.
Find out more in the PwC Limited Assurance Report, on page 185.
Stakeholder groups and topics of interest
GRI 102-40, 102-42
Our stakeholders are part of the main inputs in the value generation chain of Eletrobras companies,
being a fundamental part in defining the Materiality Matrix.
Our stakeholders
Work force/family members
investors/shareholders/market analysts
communities
society
press/opinion leaders
partners/sponsored/suppliers
governments/parliamentarians/regulatory bodies
customers/consumers/distributors
The process of identifying and selecting our
stakeholders for engagement is developed
in alignment with our business strategy and
the Code of Ethics and Integrity of Eletrobras
companies. We also consider our commitment
to sustainable development, favoring dialogue
and involvement according to the Eletrobras
Companies’ Communication and Engagement
Policy with Stakeholders - whose third version was
approved in May 2019 by the Eletrobras Board of
Directors - and the Policy of Eletrobras Companies
Spokespersons, established in November 2018.
6
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Materiality
For the 2019 Annual Report, we used the
materiality process described below in order
to map the topics with the greatest potential
for impact and value creation according to our
business strategy and according to the perception
of impact obtained from stakeholders.
Definition of materiality
GRI 102-21, 102-46
Stage 1 – Assessment of stakeholder
perception: consultation on the opinion and
perception of the stakeholders’ impact through
an online survey made available on all the
websites of our companies and sent by mailing
to the main suppliers and investors, in addition
to the press. In-depth interviews were also
conducted with several relevant interlocutors:
Ministry of Economy (Sest), Ministry of Mines
and Energy, Brazilian Business Council for
Sustainable Development (CEBDS), Global
Compact, Dow Jones Sustainability Index (DJSI),
business partners, suppliers, NGOs, academia,
among others. The use of two different formats
of listening and analysis enables the transversal
understanding of the issues that impact the
sustainability of the companies’ businesses.
people answered
the online survey
Assessment
of the degree
of impact of
themes
Stage 2 – Prioritization and definition of
the previous materiality matrix: materiality
workshop, held with the participation of all the
sustainability coordinators of the Eletrobras
companies and with the representatives of
the Executive Committee for Sustainability
Management. Those present had the task of
building the Materiality Matrix of the Eletrobras
companies, considering the themes with
potential to impact stakeholders and the
perception of the same themes according to
the strategy of the Eletrobras companies, using
online research and interviews as a basis.
Subsequently, a process of calibrating non-
prioritized themes was carried out in order
to adjust possible distortions in the previous
analysis, which was done by balancing the
results of the online survey, interviews, RepRisk
(media analysis tool and degree of exposure to
reputational risk) and materiality benchmarking
of other market players, which represent the
external scenario. After the calibration process,
the highly relevant topics (considered to be of
high or critical impact) have been prioritized,
thus generating the matrix with 12 themes.
Stage 3 – Validation with the Leadership: in line
with the methodology of the Global Reporting
Initiative (GRI) and the International Integrated
Report Council (IIRC), the Materiality Matrix
of the Eletrobras companies was submitted
for validation by the Board of Directors of the
holding and all subsidiaries. In addition to the
themes previously proposed at the workshop,
the Board of Directors decided to include the
Corporate Governance aspect as material for
Eletrobras companies totaling the 13 themes
presented below.
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Eletrobras 2020 materiality matrix
GRI 102-47
Low
Medium
l
a
c
i
t
i
r
C
h
g
H
i
m
u
i
d
e
M
w
o
L
y
g
e
t
a
r
t
S
r
o
f
t
c
a
p
m
I
Critical
High
18
7
3
11
4
19
16
5
1
8
10
12
2
9
17
6
20
14
15
13
21
Impact for Stakeholders
Below follow the list of material themes,
highlighted in blue.
13 Material Themes
1
2
Research and Development + Innovation
Relationship with suppliers
3 Water
4
5
Social and environmental aspects in decision-making
Cybersecurity and digital transformation
6 Human rights
7
8
9
10
Risk and crisis management
People management and development
Climate changes
Energy transition
11 Corruption and ethics management
12 Corporate governance
13
14
Relationship with communities
Biodiversity
15 Waste
16
17
18
19
Legal and regulatory compliance
Energy supply
Financial result
Energy efficiency
20 Health, safety and well-being
21 Communication and transparency
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Material themes and their limits
The table below is the result of the materiality determination process reported on page 7. The limits determine where or in which audiences the impacts
occur, and capital is based on the concept proposed by the framework of the IIRC (International Integrated Reporting Council) for the grouping of the different
types of input or resources used by Eletrobras companies to generate value.
COMPANIES
All Eletrobras companies
STAKEHOLDERS
1 Customers
2 Employees
3 Communities
4 Suppliers
All Eletrobras companies, except Eletropar
5 Government
6 Investors
7 Society
8 All
CAPITALS
INTELLECTUAL
FINANCIAL
NATURAL
HUMAN
SOCIAL AND
RELATIONSHIP
MANUFACTURED
Material Theme1
GRI 102-44
Research and Development
+ Innovation
Companies
Stakeholders
Specific GRI
disclosures
Capitals
SDG
1 4 5 6 7
EU8
Water
3 5 7
303-1 a 303-5
Socio-environmental aspects
in decision-making2
3 4 5 6 7
102-29 e 102-31
Digital transformation
1 2 4
There are no specific
disclosures for this topic
Cybersecurity
8
418-1
Not associated with capital,
but to the corporate
governance of the
company, which permeates
and guides the value
creation activities
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Material Theme1
GRI 102-44
Risk and crisis management2
People development
management
Companies
Stakeholders
8
2 6
Human rights
2 3 4 5 7
Specific GRI
disclosures
102-15, 102-30, EU21
401-1, 404-1 a 404-3
e EU14
405-1, 405-2, 406-1,
407-1, 408-1, 409-1,
410-1, 411-1, 412-2
e 412-3
Climate changes
Energy transition
Corruption and ethics
management2
Corporate governance2
1 3 4 5 6 7
201-2, 305-1 a 305-5,
305-7
5 6 7
EU10
8
8
102-17, 102-25, 205-1
a 205-3 e 415-1
102-19, 102-20
e 102-21 a 102-39
Energy supply
1 5 6 7
EU6, EU11, EU12 e EU30
Financial result
2 4 5 6
201-1
Capitals
SDG
Not associated with capital,
but to the corporate
governance of the
company, which permeates
and guides the value
creation activities
One of the activities
through which the company
transforms inputs into
values
Notes: 1. For each material topic, it is mandatory, according to the methodology of the Global Reporting Initiative, to report the disclosures of management form 103-1, 103-2 and 103-3.
2. Themes for which standard-general disclosures have been added (which must be reported in the composition of the profile, corporate governance and organizational strategy) are not mandatory for GRI
reports under the “Essential” option. The objective is to present comprehensive information on Eletrobras’ performance on these topics that are not covered by specific disclosures.
10
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Other GRI Disclosures*
We also chose to report disclosures associated with topics that were not mentioned in the process of determining materiality to maintain the history and
comparability between cycles.
Theme
Specific GRI disclosures
Capitals
SDG
204-1
PURCHASING
PRACTICES
FINANCIAL MANUFACTURED
SOCIAL AND
RELATIONSHIP CAPITAL
BIODIVERSITY
EMPLOYMENT
OCCUPATIONAL
HEALTH AND SAFETY
COMMUNITIES
304-2 e 304-3
401-2 e 401-3
403-1, 403-3 e 403-4, EU16
NATURAL
HUMAN
HUMAN
413-1 e 413-2, EU20, EU22
SOCIAL AND
RELATIONSHIP CAPITAL
* The term “disclosures” is used in the English version of this Report, substituting the term “indicators” in its Portuguese version, to better represent the GRI Materiality Disclosures Service requisites.
11
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Financial capital
Manufactured capital
Eletrobras’ share capital totaled
R$ 31.3 BILLION – 1,352,634,100
SHARES.
The Net Operating Income jumped
from R$ 25,772 MILLION in 2018 to
R$ 27,726 MILLION in 2019.
Consolidated net income of
R$ 10,744 MILLION – return of 15%
in relation to Net Equity.
Recurrent Ebtida grew 5.3%,
jumping from R$ 12,540 MILLION in
2018 to R$ 13,210 MILLION in 2019.
HIGHLIGHTS
Corporate governance, integrity
and human rights
For the third consecutive time, we reached the
maximum score at IG-Sest Level 1 (excellence level),
in all dimensions, in the 4th Certification Cycle of
the Governance Indicator of the State Companies
Coordination and Governance Secretariat
(SEST). In addition to the holding company, the
certification included the subsidiaries Eletrobras
Chesf, Eletrosul, CGTEE, Amazonas GT, Furnas,
Eletronuclear and Eletronorte, which also reached
IG-Sest Level 1.
85%
of trained governance body members and
25%
of business partners1 reported
on anti-corruption practices.
118,936 hours
of training in human rights policies
and procedures
3,827
employees trained.
73%
of Special Purpose Entities with participation
by Eletrobras companies responded to the Human
Rights due diligence survey.
1. Business partners in Special Purpose Entities (SPEs).
We exceeded the mark of 50 THOUSAND
MW of installed capacity, equivalent to 30%
of the country’s installed capacity.
Inauguration of the Belo Monte and Sinop
hydroelectric plants, with an installed
capacity of 11,233.1 MW and 401.88 MW –
BELO MONTE is the largest 100% brazilian
plant in installed capacity.
Net energy generation of 185,025 GWH in
2019, compared to 183,245 GWH in 2018.
Entry into operation of wind farms ACAUÃ,
ANGICAL 2, ARARAPÁ AND TEIU 2, PINDAÍ I
WIND COMPLEX; COQUEIRINHO 2 AND
PAPAGAIO, OF THE PINDAÍ II WIND COMPLEX;
AND TAMANDUÁ MIRIM 2, OF THE PINDAÍ III
WIND COMPLEX.
71,153.60 kilometers of transmission lines.
99.4% transmission availability.
PROCEL RESULTS:
21.6 MILLION MWH of energy saved in 2019.
1.6 MILLION tons of CO2 equivalent of avoided
GHG emissions.
8.1 THOUSAND MW of demand reduction
at the edge.
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Intellectual capital
Social and relationship capital
R$ 319.4 MILLION invested in Research
& Development + Innovation.
We concluded, with the Bolivian National Electricity
Company (Ende) and the Inter-American
Development Bank (IDB), an international tender for
contracting the ELECTRIC INTERCONNECTION STUDY
BETWEEN BOLIVIA AND BRAZIL.
R$ 51 MILLION invested in innovations
for sustainability.
HOLDING OF THE 8TH EDITION OF THE ELETROBRAS COMPANIES
SPONSORSHIP PROGRAM FOR ELECTRIC SECTOR EVENTS, with a
selection of 24 TITULAR PROJECTS and 9 ALTERNATE PROJECTS.
Realization by Eletrobras holding, Furnas and Eletronorte the
7TH EDITION OF THE CULTURAL PROGRAM OF ELETROBRAS
COMPANIES, in which 22 TITULAR PROJECTS and 8 ALTERNATES
WERE SELECTED for sponsorship, and the 1st edition of the
ELETROBRAS COMPANIES SPORTS SPONSORSHIP PROGRAM, in which
8 TITULAR PROJECTS and 3 ALTERNATES WERE SELECTED.
1st edition of the Eletrobras Companies’ Social Projects Notice,
in which 12 TITULAR PROJECTS and 5 ALTERNATES WERE SELECTED.
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Natural capital
Human capital
14,369 employees.
2,765 women and 11,604 men.
22% of women in leadership
positions.
23% of the leadership is made up
of black, brown, yellow and
indigenous people.
2.67% of employees are people
with disabilities.
Updates to SUSTAINABILITY
AND ENVIRONMENTAL POLICIES.
Reduction of water consumption in
administrative activities from
4,087.30 THOUSAND cubic meters in
2018 to 3,448.26 THOUSAND cubic
meters in 2019.
Total emissions of 5,897,384 tCO2e.
Donation of 76.5 THOUSAND
seedlings for planting on the banks
of rivers and streams in the São
Francisco River basin.
Donation of 1.6 MILLION
seeds of 88 DIFFERENT SPECIES.
96% OF ELETROBRAS’ ENERGY
MATRIX comes from clean sources2.
Worker in the construction of the Santo Antônio hydroelectric plant.
Eletrobras Furnas / José Lins Collection.
2.It considers hydro, wind, solar and nuclear sources.
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INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
MESSAGE FROM THE MANAGEMENT
GRI 102-14
When we look back, we will remember 2019
as a year of iconic milestones that reaffirmed
Eletrobras’ position as the largest electricity
company in Brazil and Latin America. With
the activation of the 18th and last turbine,
we inaugurated the monumental Belo Monte
hydroelectric plant, in Pará. Largest 100% Brazilian
plant in installed capacity, with 11,233 MW of
power, Belo Monte transforms the strength of
the Xingu River into renewable energy for around
60 million Brazilians. The commitment to clean
energy, which represents 96% of the Eletrobras
System matrix, also inspired us to implement a
landmark of innovation and sustainability: the
floating solar plant in the Sobradinho hydroelectric
reservoir, in Bahia.
The waters of the Teles Pires River, in Mato Grosso,
started to generate energy in the two turbines of
the Sinop hydroelectric plant, with a total capacity
of 401.88 MW of power. With the objective of
completing the works of the Angra 3 nuclear power
plant, in the state of Rio de Janeiro, this venture was
included in the Investment Partnership Program
of the Presidency of the Republic, in addition to
market sounding being carried out by Eletrobras
for identification of potential partners. Also
noteworthy is the entry into commercial operation
of seven wind farms, in addition to ten other wind
farms under implementation, with a total capacity
of 190 MW. These and other investments led
Eletrobras to surpass another historic mark in 2019:
more than 50 thousand MW of installed power,
accounting for 30% of the country’s generation.
And, with 45% of the transmission lines (voltage
equal to or above 230 kV), it remains the leader in
this market segment.
The divestments were also important for the
company’s recovery strategy. With the privatization
of the distributors, Eletrobras returned to its
traditional core business: power generation
and transmission. In addition to the sale of
minority interests in special purpose companies,
these measures contributed to the recovery of
confidence in Eletrobras, with a direct impact on
the company’s market value, which rose from
R$ 33 billion in 2018 to over R$ 51 billion in 2019.
Market recognition has been sustained, even in
a different period due to the new coronavirus
pandemic - the company’s updated market value
was R$ 45.5 billion on May 30, 2020.
Management and corporate governance practices
were also intensively developed and improved in
2019. Throughout the year, in 27 work meetings,
the Board of Directors (CA) actively participated
in monitoring the strategic projects and goals of
Wilson Ferreira Junior, president of Eletrobras. Eletrobras holding /
Cláudio Ribeiro collection.
the Business and Management Master Plan (PDNG
2019-2023), as well as drafted and approved the
guidelines for the next strategic planning cycle. It
was also the year of consolidation of Eletrobras’
Statutory Audit and Risk Committee (CAE), which
advises the Board in monitoring the PDNG,
examining fundraising and discipline in capital
allocation, with analysis of the effectiveness of
internal controls, audit and compliance issues.
It is also worth mentioning the resizing of the
staff, with an estimated annual savings of R$
746 million as of 2020, considering the two
voluntary termination plans; the start of the Zero
15
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
challenges, however, are still many, especially
for the achievement of one of Eletrobras’ main
objectives: to recover the company’s investment
capacity and, thus, expand the possibility of
operating with continued success in a highly
competitive environment.
In 2020 we achieved another important
milestone. In the first days of January, the
shareholders approved the unification of
the operations of the subsidiaries Eletrobras
Eletrosul and CGTEE, creating Eletrobras
CGT Eletrosul. The new company will deepen
the synergy of operations in Southern
Brazil, providing greater efficiency, process
improvement and optimization of results.
As a signatory of the Global Compact, in
2019, Eletrobras supported and continuously
monitored initiatives related to the Sustainable
Development Goals (SDGs) prioritized by the
company, which make up the 2030 Agenda.
Throughout this year, in parallel with the work for
Eletrobras’ constant evolution, we will monitor
the progress of the company’s capitalization
bill presented to the National Congress in 2019
by our controlling shareholder, the Union. The
sale of Eletrobras Amazonas GT to Eletrobras
Eletronorte was also approved, optimizing
the governance of subsidiaries and the capital
structure of the Eletrobras System.
In addition, Eletrobras has been monitoring,
since January 2020, the evolution and possible
impacts caused by the Covid-19 pandemic,
caused by a new coronavirus, following the
recommendations of the Ministry of Health, the
government of the State of Rio de Janeiro and the
governments of the States and the cities in which
their subsidiaries are located. The company has
taken steps to efficiently monitor the progress
of the coronavirus, preserve its workforce and
prevent the spread of the disease, including
through the creation of a Crisis Committee,
which aims to coordinate all actions related to
the pandemic.
We thank our shareholders, employees and other
partners for their trust, recognition and synergy
in building a successful company.
Wilson Ferreira Junior
President of Eletrobras
José Guimarães Monforte
Chairman of the Board of Directors
16
José Guimarães Monforte, chairman of the Eletrobras Board of Directors.
Eletrobras holding / Cláudio Ribeiro collection.
Base Budget (OBZ) project, which reinforces the
culture of cost management and transparency;
the reduction in leverage from 3.1 to 1.6
times; investments in the automation of our
substations; implementation of the ERP system
(Enterprise Resource Planning) in all Eletrobras
Companies; and the consolidation of the Shared
Services Center (CSC).
The recognition of the market and the government
certified the company’s good performance,
guaranteeing the same level of certification as
2018, but advancing in the B3 State Governance
Highlight Program from 50 to 56 points, just four
levels below the maximum score. Eletrobras is
leaner, integrated, efficient and sustainable. The
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
COVID-19 PANDEMIC
Eletrobras and its companies have been monitoring, since January 2020,
the evolution and possible impacts caused by the coronavirus pandemic,
Covid-19, and following the recommendations of the Ministry of Health
and the governments of the states and cities where its operations are
located. Eletrobras companies prioritized the preservation of their
employees and collaborators, avoiding the spread of the disease, and
maintaining the generation and transmission of electric energy in the
country. To coordinate and monitor all actions related to the pandemic,
on March 17, 2020, the Eletrobras Companies Crisis Monitoring and
Management Committee was created, formed by the holding’s Executive
Board, the Presidents of its controlled companies and the Chief Executive
Officer of Cepel.
Due to the need to preserve its essential activities, the company, as far as
possible, took several actions:
ANTICIPATED VACATIONS;
APPROVED HOURS BANK COMPENSATION;
AUTHORIZED TELEWORKING;
RESTRICTED NATIONAL TRAVEL;
LIMITED THE NUMBER OF PEOPLE AT IN-PERSON MEETINGS;
SUSPENDED TRAVEL AND PLACED EMPLOYEES WHO HAD
SYMPTOMS IN QUARANTINE; AND
ALSO ASKED THEIR SERVICE PROVIDERS TO EQUALLY OBSERVE ALL THE GUIDELINES
OF THE MINISTRY OF HEALTH.
17
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
With regard to the operation, the company
has been adopting all measures to maintain
normality, given the strategic sector in which
it operates, and, mainly, for being the largest
Brazilian electric power company, with more
than 50 thousand MW of power installed,
accounting for 30% of the country’s generation
and 45% of transmission lines with voltage
equal to or above 230kV. Among the measures,
a contingency action plan was created with
the objective of mapping, monitoring and
guiding employees on the actions required in
generation and transmission operations.
The financial impacts of the pandemic,
which will affect nations and various sectors
worldwide, may also affect the results of
Eletrobras companies, mainly due to the possible
stagnation of the Gross Domestic Product
(GDP) and the consequent reduction in the
consumption of electricity in the industrial
and commercial sectors. Notwithstanding the
creation of the COVID account, regulated by
Aneel through normative Resolution 885, there
is a risk of an increase in the incidence of default
with distribution companies and in bilateral
contracts in the free contracting environment,
with a potential increase in requests for
renegotiation of contracts. However, it is worth
noting the high degree of uncertainty regarding
the possible reduction in electricity consumption
in the country, as well as its duration.
News from European countries indicate a
reduction in the flattening stage of the Covid
-19 pandemic, as in some Asian countries. In
Brazil, where increased social distance is still a
reality, around 70% of the qualified workforce
of Eletrobras companies has started to work
in telework. Our employees have expended
efforts to maintain corporate activities,
support for the permanence of the operation
of generation and transmission assets and
for the functioning of our management and
governance structures, maintaining the
necessary resources so that our managers
continue to make decisions in favor of the
sustainability of our companies.
The company has already started the testing
of part of its workforce and has strengthened
preventive measures to prevent the spread
and contamination by coronavirus. In parallel,
under the guidance of the Crisis Committee, it
works on the elaboration of a protocol for the
gradual resumption of face-to-face work in all
its units, safeguarding the health and safety
of its workforce, with socio-environmental
responsibility, transparency and prudence,
preparing everyone for the new normal ahead.
In addition, aware of its important social role,
the company negotiated alternative measures
with its supply chain in order to preserve jobs and
maintain the health and safety of outsourced
employees. It also established corporate
guidelines for donations and support to
surrounding communities and society in general.
In this very unusual moment for all, Eletrobras
has demonstrated high resilience, a high
degree of commitment and a clear purpose for
all its managers and employees to generate
and transmit the energy that Brazil needs
to fight the pandemic, preserve lives and
maintain economic activities.
18
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
INDUSTRY CONTEXT
Macroeconomic indicators
Regulatory outlook
Brazilian Gross Domestic Product (GDP) grew
1.1% compared to 2018 - a weak performance
that demonstrates the slow recovery of
the economy, associated, in part, with low
household consumption. Inflation, as measured
by the IPCA variation, reached 4.31% per year,
against 3.75% in 2018. This level is above the
floor established by the National Monetary
Council (CMN) under the inflation targeting
regime - 4.25% per year. According to IBGE,
the IPCA was pressured in 2019, mainly by the
increase in meat and fuel prices, followed by
health plans.
Sectoral indicators
According to the Energy Research Company
(EPE), the consumption of the electricity
sector reached 482,084 GWh by December, an
increase of 2.1% compared to 2018. Climate
and billing cycle caused consumption by the
residential and commercial classes to grow
1.2% and 3.8%, respectively, while industrial
consumption decreased 1.3%. All regions
recorded high consumption in 2019, the
Northeast being the most significant - 3.0%.
The Electricity Sector Modernization Working
Group, instituted by MME Ordinance No.
187/2019, generated discussions on a series
of changes, such as separation of ballast and
energy, opening of the market and improvement
of the Energy Reallocation Mechanism (MRE). In
this context, Public Consultations were opened,
including MME No. 82/2019, which dealt with the
revision of the reference values for the levels of
availability of the plants (TEIF and IP).
Aneel launched Public Hearing No. 03/2019 to
review normative resolution in order to enable
the calculation of the amount of generation
indemnities associated with concessions, whether
extended or not, based on Law No. 12.783/2013
and Decree No. 7.850/2012. The agency also
opened Public Consultation No. 026/2019, this
time to review the methodology for calculating
capital remuneration, applicable to transmission
and to quota and nuclear generations.
Still in 2019, Aneel Subsidy Taking No. 06/2019
was opened, on ancillary service provision,
a subject that receives special attention due
to the forecast of increased penetration of
intermittent renewable sources in the Brazilian
electricity sector.
Climate and billing cycle caused
consumption by the residential and
commercial classes to grow 1.2% and
3.8%, respectively, while industrial
consumption decreased 1.3%. All
regions recorded high consumption
in 2019, the Northeast being the most
significant - 3.0%.
19
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
In the transmission segment, Ratifying Resolution No. 2565/2019
established the Allowed Annual Revenues (RAPs) to the concessionaires
of electricity transmission for the 2019-2020 cycle (from July 1, 2019 to
June 30, 2020). On December 31, the Eletrobras companies’ RAP was of
the order of R$ 11,493 million, representing an increase of approximately
6.76% in relation to 2018. The Variable Portion (PV) discounts, the portion
to be deducted from the transmitter’s revenue due to the inadequate
provision of the public transmission service, remained relatively stable -
2.16% and 2.28% respectively in 2018 and 2019.
Auction No. 002/2019 did not present the changes in the methodology
for calculating the Weighted Average Cost of Capital (WACC) provided
for in the Tariff Regulation Procedure (Proret). However, the real cost of
third-party capital, a factor that makes up one of the parameters of the
Regulatory Capital Remuneration Rate, was reduced from 6.94% to 6.61%
per year.
Converter Transmission (FT) and converter of High Voltage Direct Current
Transmission Installations (CCAT) functions; and improvement of the proposal
to revise the requirements for the operation regime of the transmission and
electricity generation facilities established in the Grid Procedures.
There was also a revocation of a normative resolution dealing with the
separation of operating and holding activities from electricity transmission
companies, which ended with a controversial point, which compromised
the competitiveness of auctions and impacted the corporate restructuring
processes of the companies. Subsidies were also taken for the preparation of
Aneel’s Regulatory Agenda 2020/2021. Eletrobras contributed with topics for
the review and creation of regulatory treatment rules for the remuneration
of transmission equipment with an exhausted useful life; improvement of
regulations associated with reinforcements and improvements; and definition
of indemnity rules for assets not depreciated or amortized at the end or
termination of the concession contract.
In order to improve transmission regulations, Aneel published normative
resolutions and opened public hearings and consultations. The main
changes were: approval of procedures, parameters and criteria for the
imposition of penalties on agents in the electricity sector; establishment of
the provisions related to the quality of the public electricity transmission
service associated with the availability and the operative capacity of
We also participated in the consultation to assess the need to improve
regulatory controls related to the regulatory useful life of transmission
equipment, with currently depreciated assets failing to return to the
concessionaire, who receives only an amount equivalent to operating and
maintenance expenses.
20
INTRODUCTIONANNUAL REPORT ELETROBRAS 2019 CORPORATE PROFILE
21
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ELETROBRAS
GRI 102-2, 102-4, 102-6, 102-7, EU1
Since its foundation in 1962, Centrais Elétricas Brasileiras S/A - Eletrobras - has been composing and transforming the Brazilian energy matrix, contributing
to the construction of the current scenario in our country. On December 31, 2019, Brazil reached an installed capacity of 172 GW, of which 51 GW come from
Eletrobras, equivalent to 30%. Of this total, 60.9% is comprised of projects wholly owned by the Eletrobras system, 23.6% of projects carried out through
Special Purpose Entities (SPEs) and 15.5% of projects on shared ownership, including half of the capacity of Itaipu Binacional (7,000 MW).
ELETROBRAS IS RESPONSIBLE FOR 30%
OF THE NATIONAL GENERATION CAPACITY
GENERATION CAPACITY
39%
North
21%
Northeast
4%
Midwest
17%
South
20%
Southeast
51,143 MW
of the total generation capacity
obtained from clean energy sources
96%
90%
hydro source
4%
nuclear source
2%
wind source
1. We also own the solar source, which represents less than 1% of our
clean sources.
2. The Teles Pires and São Manoel hydroelectric plants were considered in the
North region and the Itumbiara hydroelectric plant was considered in the
Southeast region. The three projects are located at regions borders.
4% generated by thermoelectric plants,
representing a small part of generation from
non-renewable sources.
TRANSMISSION
GRI EU4
de linhas corporativas
71 thousand km
of transmission lines
64 thousand km
of corporate lines of the
Eletrobras System and
7 thousand km in SPEs
22
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Eletrobras abroad
GRI 102-4
In 2019, we acted primarily on regional integration
and renewable energy generation projects in
the Latin American continent. We also seek
to strengthen relations with local agents and
with multilateral development agencies for the
development of our international projects.
Regarding the energy potential on the border
between Brazil and Bolivia, the progress of the
Binational Hydroelectric Inventory Study in
part of the Madeira River Basin by the company
WorleyParsons Engenharia Ltda. The study was
jointly contracted by Eletrobras, the Bolivian
National Electricity Company (Ende) and the
Banco de Desarrollo de América Latina (CAF), with
completion scheduled for the first half of 2020.
Also, in relation to Bolivia, the start of studies
for the Brazil-Bolivia electrical interconnection,
carried out by Eletrobras in partnership with the
Inter-American Development Bank (IDB) and
Ende, which is expected to end in the second half
of 2020, is noteworthy.
We also maintained our strategic partnership
with the Uruguayan state-owned Administración
Nacional de Usinas y Trasmisiones Eléctricas
(UTE), aimed at promoting the generation of
energy from renewable sources, exemplified
in the joint development and operation at the
Artilleros Wind Farm (65 MW).
Within the scope of the promotion of regional
electrical integration, the studies related to the
viability of the Arco Norte Project stand out
again, a transmission system of approximately
1.9 thousand kilometers in length that aims at
transferring the energy to be generated by new
generation projects, between Brazil, Guyana,
Suriname and French Guiana. As a result of the
presentation of the results of these studies to
the main authorities linked to the electric sector
of these countries, in 2018 individual (bilateral)
analysis of electrical integration began in order to
move forward with the global project.
The other recommended actions, such as, for
example, the hydroelectric inventory studies in
Guyana and Suriname, depend on the holding of a
meeting at the ministerial level, also identified as
“High Level Meeting,” scheduled for 2020.
The international sale of electric energy remains
the focus of our operations abroad. Currently,
we act as one of the trading agents responsible
for importing energy from the Uruguayan state-
owned UTE (Administración Nacional de Usinas y
Trasmisiones Eléctricas).
23
Porto Colombia hydroelectric plant. Eletrobras Furnas Collection.
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Corporate structure of Eletrobras companies
P&D
SHARES
GENERATION
GENERATION AND
TRANSMISSION
50,00%
136 SPEs
41 in sale process
25 in extinction process
14 in incorporation process
Note: the number of SPEs considers direct and indirect stakes and disregards SPEs that participate in more than one Eletrobras company, differently from the quantities considered in the tables of each company. In
this total, two SPEs abroad are included. Of the 136 national and international SPEs, 40 are in the process of divestment; one SPE in the process of sale from Auction no. 01/2018 and 39 SPEs in a competitive
process of sale during 2019.
24
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Shareholding composition
Shareholders
Ordinary
%
Preferential “A"
%
Preferential “B”
%
Total
%
Controlling shareholder
Federal Union
BNDESpar
BNDES
FND
FGHAB
Others
Non-controlling shareholder
Cust. CLBC
Resident
Non-Resident
ADR Program
Furthermore
Resident
Non-Resident
Total
Nota: Shareholding composition on December 31, 2019.
554,394,671
51.00
141,757,951
13.04
74,545,264
6.86
45,621,589
4.20
1,000,000
0.09
0
0
0
0
0
0
0
0
0
0
411
0.00
554,395,082
40.99
18,691,102
7.04
160,449,053
11.86
18,262,671
6.88
92,807,935
0
0
-
-
45,621,589
1,000,000
6.86
3.37
0.07
269,730,822
24.81
146,920
100.00
228,482,699
86.08
498,360,441
36.84
134,974,434
12.42
82,828
56.38
103,728,559
39.08
238,785,821
17.65
107,546,666
9.89
27,121,748
2.49
1
0
0.00
-
101,991,247
38.42
209,537,914
15.49
8,030,814
3.03
35,152,562
2.60
87,728
0.01
64,064
43.60
10,340,613
3.90
10,492,405
246
0.00
27
0.02
213
0.00
486
0.78
0.00
1,087,050,297
100.00
146,920
100.00
265,436,883
100.00
1,352,634,100
100.00
25
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
HOW WE CREATE VALUE
By providing electricity - an essential resource for the functioning of all productive sectors, people’s
relations and socioeconomic development - Eletrobras creates value for society. However, we seek to
go further and echo the return we get from our activities for all stakeholders and for society as a whole.
And we do this by identifying the resources, assets and capital that interact with our business and
understanding the impacts - positive and negative - of the transformation of this group into electric
energy, seeking to promote responsible and sustainable management, which deals with these impacts
in order to prevent, enhance or minimize them, generating value at the final end.
INDUSTRIA
This is the basis of the model presented below, a summary of how our activities interact with the
external environment (sector, political and macroeconomic context) to provide consistent returns to
stakeholders and society. The way this report was organized is consistent with this representation,
bringing greater connectivity between different parts of the business and financial and non-financial
(intangible) results, showing in a clear and transparent way how our activity transforms resources,
assets and capital into value.
By providing electricity - an
essential resource for the
functioning of all productive
sectors, people’s relations and
socioeconomic development -
Eletrobras creates value for society.
26
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
VALUE
CREATION
MODEL
HUMAN
CAPITAL
INTELLECTUAL
CAPITAL
GENERATION
GENER
A
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D A
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OTHER BUS I N E S S
SERVICES AND PRO D U C T S
Purpose We put all our energy into the sustainable
development of society.
Vision To be an innovative clean energy company,
recognized for excellence and sustainability.
Values Respect for people and life
Ethics and transparency
Excellence
Innovation
Collaboration and recognition
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SDG 4 5 8 10 12 13 16
Reliability upon receipt
SDG 7 9
Conservation of biodiversity
SDG 9 13 15
Energy conservation
SDG 7 13
Hiring at a fair (sustainable) price
SDG 7 9
Contribution to sustainable development
SDG 1 a 6 7 a 9 10 a 12 13 14 15 16 17
Professional growth / training
SDG 4 8
Participatory dialogue
SDG 11 16
Energy availability for everyone, with a lower risk
of socio-environmental impacts
SDG 1 a 3 7 9 10 13 14 15
Distribution of dividends
SDG 8
Fostering a more sustainable supply chain
SDG 5 8 10 12 16
Fostering respect for human rights
SDG 8 9 10 16
Job and income generation
SDG 1 and 3 8 9 10 12
Integrity (ethical, legal and transparent conduct)
SDG 16
Private social investment
SDG 1 3 4 7 a 9 13 15
Improving the country infrastructure
SDG 7 9 11
Improvement of the living conditions for the affected populations
SDG 1 3 9 11 16
Low tariffs - affordable energy
SDG 3 7 a 9
Partnership in public policy management
SDG 1 a 3 7 a 9 12 13 17
S
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K
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Share in structuring projects
SDG 7 9
Research, development and innovation
SDG 7 a 9
Hiring predictability
SDG 8 12 16
Promoting culture, sport and events
SDG 3 4 8 9 13
Promoting diversity
SDG 5 8 10 12 16
Promoting health and safety
SDG 3 8
Quality of life
SDG 1 a 3 7 8
Ethical, transparent and equitable relationship
SDG 16
Financial return on invested capital
SDG 8 9 16
Safety and reliability in the operation
SDG 7 9 11 13
Valuing the brand and corporate reputation
SDG 12 13 16
In this infographic, we also show how the creation of value by Eletrobras meets
the 17 Sustainable Development Goals (SDGs), especially the SDGs prioritized
by the company, 7, 8, 9, 13 and 16, highlighted in blue. Learn more at:
https://nacoesunidas.org/pos2015/agenda2030/
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27
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019VALUE CREATION EXPECTATIONS MAIN INPUTS
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Our impacts
L
A
T
I
P
A
C
L
A
R
U
T
A
N
INPUTS
TYPES OF
VENTURES
IMPACTS
WATER
HYDROELECTRIC PLANTS.
SOIL - (OCCUPATION)
HYDROELECTRIC PLANTS;
WIND PLANTS; AND
THERMOELECTRIC PLANTS.
Change in water quality;
Macrophyte proliferation;
Multiple uses of the reservoir;
Alteration of ecosystems/habitat; and
Decreased diversity of flora and fauna.
Loss of vegetation cover;
Forest Fragmentation;
Erosive processes; and
Sedimentation.
NATURAL GAS
THERMOELECTRIC PLANTS.
GHG emissions (climate change).
MINERAL COAL
THERMOELECTRIC PLANTS.
GHG emissions (climate change); and
Change in air quality.
WIND
WIND PLANTS.
Interference on migratory routes and collision
with birds; and
Reduction of migratory bird populations.
28
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
L
A
T
I
P
A
C
P
I
H
S
N
O
I
T
A
L
E
R
D
N
A
L
A
I
C
O
S
INPUTS
IMPACTS
INPUTS
IMPACTS
SPONSORSHIPS, SOCIAL
NETWORKS AND ADVERTISING
CAMPAIGNS
Conflict reduction; and
Organization Image.
CORPORATE REPORTS
Transparency;
Communication; and
Accountability.
SOCIAL COMMUNICATION, CODE OF
ETHICS AND INTEGRITY, CORPORATE
POLICIES AND VOLUNTEERING
Improving business reputation;
Improvement in institutional relations;
Improvement in organizational culture;
Business alignment;
Business Integrity;
Positive brand perception; and
Reduction of lawsuits.
INSTITUTIONAL RELATIONS
Increase in market value; and
Credibility.
RELATIONSHIP PROCESSES AND
CHANNELS WITH DIFFERENT
STAKEHOLDERS AND OMBUDSMAN
Transparency; and
Access to information.
REPUTATION RESEARCH
Brand value.
SOCIAL AND ENVIRONMENTAL PROGRAMS
Greater contribution to public policies;
Conflict reduction;
Impact mitigation; and
Social transformation.
29
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
L
A
T
I
P
A
C
L
A
I
C
N
A
N
FI
INPUTS
IMPACTS
EQUITY - CASH REVENUE
Investment capacity.
L
A
T
I
P
A
C
N
A
M
U
H
INPUTS
IMPACTS
OWN EMPLOYEES
Job and income generation.
EQUITY - CAPITALIZATION REVENUE
Liquidity.
THIRD PARTIES - LOANS / FINANCING
Market expansion.
RETURN ON INVESTMENT
Projects feasibility.
CONTRACTED COMPANIES
TRAINING, CAPACITY BUILDING
AND MOTIVATIONAL PROCESSES, PROGRAMS
AND PROCEDURES
Intellectual Capital
Development.
SHARES AND DEBENTURES
Direct impact on other capitals.
KNOWLEDGE MANAGEMENT
30
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
L
A
T
I
P
A
C
L
A
U
T
C
E
LL
E
T
N
I
INPUTS
IMPACTS
P&D + I
Patent registrations;
Sustainability and profitability;
Increased efficiency of the production
process; and
Technological innovation.
CYBERSECURITY
Business Integrity; and
Security of company and customer data.
PATENTS, INTELLECTUAL
PROPERTY; COPYRIGHT
Guarantee of the invention monopoly;
Protection against undue exploitation;
Improvement and new products and
services; and
Preserving an organization’s intelligence.
L
A
T
I
P
A
C
D
E
R
U
T
C
A
F
U
N
A
M
INPUTS
IMPACTS
GENERATION = HYDROELECTRIC PLANTS,
THERMOELECTRIC PLANTS,
WIND GENERATORS,
PHOTOVOLTAIC GENERATORS
Revenue generation;
Job creation; and
Power availability.
TRANSMISSION LINES
AND SUBSTATIONS
BUILDINGS AND ADMINISTRATIVE
FACILITIES AND IT STRUCTURE
Technological know-how; and
Generation of administrative waste.
31
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ACKNOWLEDGMENTS
Carbon Clean 200
We were listed among the 200 companies in the world with shares on the
stock exchange that stand out with income obtained from low carbon
products and services. Eletrobras is one of the nine national companies to
be included in the ranking.
Best Companies in Brazil 2019
We got the 3rd Place in the Energy in Financial Performance segment;
4th Place in Vision of the Future; 7th Place in Open Capitan and 8th Place
in the General Ranking of the Época Negócios 360º Yearbook, of Revista
Época Negócios.
100 Most Influential in Power
President Wilson Ferreira Junior was nominated in the Energy Efficiency
category by Grupo Mídia.
CSC Highlight Award 2019
We were awarded 1st place in the CSC Highlight category, by the Brazilian
Association of Shared Services (ABSC).
Institutional Investor
We stand out in the 28th position in the general ranking and in the 4th
position in the scope of companies in the electric energy sector, considering
the highest net profits, net margins, profits from the activity, Ebitda and net
assets of the country by Revista Valor 1000.
Most Admired Professional
Lucia Casasanta, director of Governance, Risk and Compliance at the
holding company was elected among the 20 most admired Compliance
executives in the country by the Yearbook Compliance On Top 2019.
Prepared by Vittore Partners and dLEC-Legal, Ethics, Compliance.
Women on Board (WOB) seal
Eletrobras Furnas, Eletronorte, Eletrosul and CGTEE were recognized by
UN Women for the participation of two or more women on their boards,
prioritizing the treatment of gender diversity in their businesses and
encouraging their partners to join the same movement.
2019 WEPs Brazil Award - Companies Empowering Women
Eletrobras Eletrosul was awarded in the Large Companies - Silver category
by UN Women and the Global Compact as a promoter of the culture of
gender equality and women’s empowerment in the country.
CR Reporting Awards
Eletrobras Annual Report 2018 is among the ten best integrated reports,
competing for the award in the Best Integrated Report category.
32
CORPORATE PROFILEANNUAL REPORT ELETROBRAS 2019 STRATEGY AND VISION
FOR THE FUTURE
33
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
STRATEGIC PLANNING
GRI 102-26, 102-31
We developed our strategic planning to identify trends, risks and uncertainties related to our business.
The studies that support the estimates and guide our planning consider current expectations and refer to
future events, in addition to financial and non-financial trends for a 15-year timeframe.
To prepare this plan, several scenarios were evaluated, the attractiveness of businesses in the energy
market, the potential existing in Eletrobras companies and the aspirations of our shareholders.
The deployment of the Strategic Plan occurs through the Business and Management Master Plan (PDNG),
a short/medium term plan with a five-year horizon that defines the projects to be developed by our
companies, aiming at achieving our strategic objectives.
Below, we present the main advances of the Business and Management Master Plan (PDNG) 2019-2023.
.
.
Transmission tower maintenance. Eletrobras Furnas Collection / Daniela Monteiro.
34
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
PDNG 2019-2023
GRI 102-31, 102-34
Challenge 23: Sustainable excellence
As a result of the Strategic Plan, the PDNG
2019-2023 was prepared based on the analysis
of different scenarios and a deep diagnosis of
the business context to define priorities for the
five-year period. The five strategic guidelines
selected to compose this PDNG highlighted
our purpose and ambition: Profitable Growth,
Sustainable Performance, Governance
Improvement and Compliance, Operational
Excellence and Valuing People. The unfolding of
the strategy converges and consolidates itself
to reach the main goals described in Challenge
23 - Sustainable Excellence.
Below we present the goals outlined for
2019 and the results achieved in 2018
for each guideline.
In 2019, the PDNG 2019-2023 fulfilled
its strategic ambition and achieved
significant results.
PROFITABLE GROWTH
SUSTAINABLE PERFORMANCE
To grow in a sustainable way guaranteeing the
company's profitability and value.
To be recognized as a socially, environmentally and
financially responsible G&T company.
Result
2018
2019
Goal
2019
Generation Expansion (MW)1
1,667
2,097
2,037
Transmission Expansion (KM)2
189
524
1,266
Strategic Objectives
Increase profitability in the electricity business; and
Expand the Generation & Transmission business in a
sustainable way.
Main Achievements
Accumulated revenue in the ACL until Dec/2019 of:
R$ 6.70 billion; and
The Angra 3 Thermonuclear Unit became part of the
Investment Partnership Program in July/2019.
Goal
2019
< 3.0
Result
2018
2019
Net Debt/Adjusted Ebitda
3.1
1.6
Strategic Objectives
Optimize the level of indebtedness reaching
international standards .
Main Achievements
Capital increase of R$ 3.6 billion, reflecting cash
reinforcement;
Bond issue by the holding company;
Issuance of debentures by subsidiaries;
Competitive Disposal Procedure No. 01/2019 published
for the following SPEs:
Santa Vitória do Palmar holding S.A;
Eólica Hermenegildo I S.A, Eólica, Hermenegildo II
S.A., Eólica Hermenegildo III S.A. e Eólica Chuí IX S.A.;
Chapada do Piauí I holding S.A.;
Chapada do Piauí II holding S.A.;
Eólica Mangue Seco 2 Geradora e Comercializadora
de Energia S.A.; and
Manaus Transmissora de Energia S.A.
Notes:
1. Considers aggregate power in 2019.
2. Considers the aggregation in 2019 for corporate lines and Special Purpose Entities (SPEs) of all tension levels. The net aggregation/
disaggregation, resulting from the aggregation of 422.5 corporate km and the sale of 617.19 km of SPEs, was -194.69 km.
35
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
OPERATIONAL EXCELLENCE
IMPROVING CORPORATE GOVERNANCE
AND INTEGRITY
VALUING PEOPLE
Pursue operational excellence throughout the
value chain.
Strengthen internal controls and corporate
governance, ensuring business integrity.
Result
2018
1.32
2019
1.24
Goal
2019
1.25
Regulatory PMSO1/PMSO
Strategic Objectives
Adjust the operating and corporate costs structure
of Eletrobras companies.
Main Achievements
Estimated savings of R$ 746 million/year with 1,845
adhesions to the Consensual Dismissal Plan (PDC), with
an estimated cost of R$ 681 million; and
Estimated savings of R$ 280 million/year with the
terminations of 1,041 outsourced workers from Furnas
through the PDC, at an estimated cost of R$ 321 million.
Implementation of the Shared Services Center (CSC);
Action plans defined for the 1st phase of Zero-Base
Budget (OBZ);
Incorporation of Eletrobras CGTEE and Eletrosul
in January 2020; and
Transfer of Amazonas Geração e Transmissão to
Eletronorte in January 2020.
Result
2018
2019
Goal
2019
2
4
0
Reduction of material
weaknessess2
Strategic Objectives
Improve internal controls and risk management by
promoting transparency and reliability.
Strengthen Eletrobras business integrity.
Main Achievements
Consolidation of the Statutory Audit Committee;
Management continuity after change
of government;
Approval of the new risk management policy
and risk map by all boards of the holding and
controlled companies;
Creation of the denunciation investigation unit;
Elaboration of the Regulations of the Integrity
Program - Compliance; and
Elaboration of the Conflict of Interest
Management Policy.
Develop and strengthen technical and technological
skills, valuing employees and fostering a culture
of results.
Result
Goal
2018
2019
2019
2.86
2.35
1.33
Accident Frequency Rate
with remoteness (its own
employees)
Strategic Objectives
Foster a culture of high performance, knowledge
management and promote recognition; and
Promote safety and well-being for employees.
Main Achievements
Implementation of the standardization of work
safety criteria;
Creation of the Management and Sustainability
Department; and
Renegotiation of the Collective Labor
Agreement (ACT).
Notes:
1. People, Materials, Services and Other expenses.
2. This indicator refers to the number of material weaknesses related to internal controls included in Form 20-F of the Securities and Exchange Commission.
36
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
PDNG 2020-2024
GRI 102-26, 102-31
Focused on developing our business and continuing the effort made in recent years to improve our performance, we approved the Business and Management
Master Plan for the period from 2020 to 2024 (PDNG 2020-2024). As a result of a continuous updating process that was based on the PDNG 2019-2023, the
new PNDG presents some changes that are in line with the constant changes in the business scenarios and the challenges to be overcome.
Materiality PDNG 2020-2024
National and international trends
Performance indicators
Added value
Impact on business
Associated
SDGs
Guideline
VALUE AND INVESTMENT: Increase value creation and expand the company's investment capacity
Expansion of the low-carbon economy;
Changes in consumption patterns and
greater customer role;
Expansion and increase in the
complexity of the electricity
transmission system; and
Transformations in the Electricity Sector,
requiring adjustments to the Sector Model.
Net debt / EBITDA;
Increase in operating revenue;
Risks
Percentage of investments made; and
Contribution to sustainable
Variation in share price with other
sector players.
development;
Financial return on invested capital;
and
Brand enhancement and corporate
reputation.
Shareholder divestment.
Costs
Higher funding costs.
Guideline
CULTURE AND PEOPLE: Develop a culture of high performance and excellence in people management, with meritocracy
Knowledge and innovation as engines
of the economy;
Accident frequency rate (internal
and outsourced employees);
Brand enhancement and corporate
Risks
reputation;
Low productivity; and
Need for greater professional
qualification of the staff; and
Accident prevention culture, promoting
safe and protected environments
for employees.
Accident severity rate;
Absenteeism rate;
Employee satisfaction;
Employment and income generation;
Talent flight.
Health and safety promotion;
Costs
Quality of life;
Percentage of women in management
positions;
Promotion of respect for human
rights; and
Number of women on boards; and
Professional growth and capacity
Investment in training / number
of Employees.
building.
Occupational leave;
Labor claims; and
High investments in training and low
return on educational actions.
37
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
National and international trends
Performance indicators
Added value
Impact on business
Guideline
GOVERNANCE: Achieve excellence in Governance, Risk Management and Internal Controls (GRC). Seek operational excellence throughout the value chain.
Associated
SDGs
Demand for greater transparency;
Implementation of more effective
controls that inspire confidence in
the market;
Preventive risk management; and
No tolerance for corrupt practices.
Number of reported material
weaknesses;
Global score on IG-Sest; and
Financial return on invested capital;
Risks
Enhancement of the brand and
corporate reputation;
Percentage of suppliers and employees
trained to fight corruption.
Integrity (ethical, legal, and transparent
conduct); and
Ethical, transparent and isonomic
relationship.
Reputational; and
Shareholders divestment.
Costs
Loss of company value;
Higher funding costs; and
Fines and penalties for the company
and its managers.
Guideline
MANAGEMENT: Focus the company's management on generating value and increasing competitiveness
Extensive digitalization of the economy
and society (including IoT);
Operating Result / Number
of employees.
Knowledge and innovation as drivers
of the economy; and
Transformations in the Electricity
Sector, requiring adjustments to the
Sector Model.
Distribution of Dividends;
Risks
Fostering a more sustainable
supply chain;
Financial return on invested
capital; and
Valuing the brand and reputation
business.
Low efficiency (slow reaction).
Costs
Increase in operating costs.
Guideline
INNOVATION AND DIGITAL TRANSFORMATION: Taking a leading role in innovation and promoting the digital transformation of business and management processes
Extensive digitalization of the economy
and society (including IoT);
Knowledge and innovation as drivers of
the economy; and
Acceleration of technological changes.
Investment in R&D/ROL.
Increase in operating revenue;
Risks
Increase in Reputational value;
Financial return on invested capital;
Distribution of Dividends;
Hiring predictability; and
Increase in research and innovation
and technological development.
Reduced competitiveness.
Costs
Increased costs in light of more
modern technologies for sustainable
performance.
38
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
National and international trends
Performance indicators
Added value
Impact on business
Associated
SDGs
Guideline | G&T EFFICIENCY: Creating value by increasing the efficiency of G&T assets
Transformations in the Electricity
Sector, requiring adjustments to the
Sector Model;
Acceleration of technological changes;
Reduction in the cost of critical
inputs; and
Systemic gains in energy efficiency.
Regulatory PMSO/PMSO;
Financial return on invested capital;
Risks
Relative generation availability;
Dividend Distribution;
Operational availability of transmission
lines; and
Security and reliability in operation
(Energy Security);
Transformers operational availability.
Reliability upon receipt;
No reduction in emissions with
consequences for sustainable
development.
Costs
Higher operating costs.
Guideline | G&T EXPANSION: Consolidate leadership in G&T, focusing on clean energy
Expansion of the low-carbon economy;
Expansion of the Generation (MW);
Expansion of demand for electricity;
Diversification of the Brazilian
electricity matrix;
Expansion and increase in the
complexity of the electricity
transmission system; and
Reduction in the cost of critical inputs.
Expansion of the Transmission
(KM and MVA); and
Percentage of clean energy
in the matrix.
Contribution towards a sustainable
development;
Financial return on invested capital;
Energy conservation;
Valuing the business brand and
reputation; and
Security and reliability in operations
(energy security).
Improvement of living conditions
for the affected populations;
Risks
Questioning of stakeholders;
Participatory Dialogue;
Changes in biodiversity;
Changes in the way of life of the
communities in the areas where
they live;
Displacement of populations in areas
where they live; and
Shareholder divestment.
Participation in structuring projects;
Fostering a more sustainable supply chain;
Increase in operating revenue;
Contribution to a sustainable
development;
Financial return on invested capital;
Availability of energy for everyone, with less
risk of social and environmental impacts;
Affordable energy;
Energy conservation;
Partnership in public policy
management;
Safety and reliability in the operation
(energy security);
Improvement of the country’s
infrastructure; and
Employment and income generation.
39
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
National and international trends
Performance indicators
Added value
Impact on business
Associated
SDGs
Guideline | COMERCIALIZATION: Achieve leadership in marketing, with attractive margins and efficiency in risk management
Demand for high performance; and
Global Marketing Index.
Reliability upon receipt
Risks
Changes in consumption patterns
and greater customer role.
Shareholder divestment.
Revenue
Reduced Revenue.
Increased attractiveness for
shareholders;
Increase in the company’s value;
Financial return on invested capital;
and
Brand enhancement and corporate
reputation.
Guideline | NEW BUSINESS: Investing in new business, focusing on energy, participating in the consolidation of the sector (M&A)
Market demand for renewable and clean
energy in the energy matrix;
Revenue from new business /
Total revenue.
Demand for greater energy efficiency;
Attention to the risks of climate
change and changes in the planet’s
biodiversity; and
Demand for innovation and
development of new technologies.
Distribution of dividends;
Risks
Failure to capture new business
opportunities and expand the
company’s portfolio.
Revenue
No increase in revenue.
Fostering a more sustainable
supply chain;
Reliability upon receipt;
Increase in operating revenue;
Contribution to sustainable
development;
Financial return on invested capital;
Availability of energy for everyone,
with less risk of social and
environmental impacts;
Affordable energy;
Energy conservation;
Brand enhancement and corporate
reputation;
Improvement of the country’s
infrastructure; and
Employment and income generation.
40
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
PURPOSE
We put all our energy into
the sustainable development
of society
VISION
To be an innovative clean
energy company, recognized for
excellence and sustainability
VALUES
Respect for people and life
Ethics and transparency
Excellence
Innovation
Collaboration and recognition
Below, we present the new corporate identity that will guide Eletrobras in facing these challenges and
the strategic guidelines that will support the conduct of Challenge 24.
The PDNG 2020-2024 is structured around nine strategic guidelines that demonstrate the breadth of
our objectives and the ambition to continue improving.
Strategic guidelines of the PDNG 2020-2024
Dimension: business performance
1 VALUE AND INVESTMENT
Increase value creation and expand the company's
investment capacity.
Dimension: governance, management and critical capabilities
2 CULTURE AND PEOPLE
3 GOVERNANCE
4 MANAGEMENT
5 DIGITAL INNOVATION AND TRANSFORMATION
Develop a high-performance culture and excellence in people
management, with meritocracy.
Achieve excellence in Governance, Risk Management and Internal
Controls (GRC).
Focus the company's management on creating value and
increasing competitiveness.
Have a leading role in innovation and to promote the digital
transformation of business and management processes.
Dimension: businesses
6 G&T EFFICIENCY
7 G&T EXPANSION
8 COMERCIALIZATION
9 NEW BUSINESSES
Create value by increasing the efficiency of G&T assets.
Consolidate leadership in G&T, focusing on clean energy.
Achieve leadership in marketing, with a high margin and efficiency
in risk management.
Invest in new businesses, focused on energy, participating in the
consolidation of the sector (M&A).
41
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
As in previous years, the Strategic Guidelines are linked to a set of indicators with even more
challenging goals, which aim to improve our overall performance.
Challenge 24: Sustainable excellence (PDNG 2020-2024 indicators)
LEVERAGE
Net debt
Adjusted Ebitda
2020 GOAL
< 2.5
EFFICIENCY
PMSO
PMSO regulatory
2020 GOAL
1.0
PERSONNEL
Accident Frequency Rate
with remoteness (own
employees + third parties)
2020 GOAL
2.48
GOVERNANCE
Number of material
weaknesses
2020 GOAL
0
42
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
The focus on the best results guided by the best sustainability practices is
our way of doing business. PDNG 2020-2024 includes the Sustainability 4.0
Program, with several projects linked to the following dimensions: social,
environmental, governance and financial, which raise the bar for strategic
management of the theme.
PDNG 2020-2024-Sustainability 4.0
S
O
C
IA
L
VISION OF THE FUTURE
Being an innovative clean
energy company, recognized for
excellence and sustainability
ENVIRONMENTAL
BUSINESS AND
PERFORMANCE GUIDELINES
Value and investment
G&T Efficiency
G&T Expansion
Marketing
New businesses
PURPOSE
We put all our
energy into the
sustainable
development
of society
MANAGEMENT GUIDELINES
Culture and people
Management
Governance
Innovation and Digital Transformation
ECONOMIC-FINANCIAL
VALUES
Respect for people and life
Ethics and transparency
Excellence
Innovation
Collaboration and recognition
S
U
S
T
AIN
A
B
ILIT
Y
SUSTAINABILITY is our way of doing
business, which runs through and
encompasses the entire Eletrobras Strategy.
SUSTAINABILITY 4.0 PROGRAM
Indicators:
Market assessments;
Accident Frequency Rate;
Benefits of Investments in P&D+I;
Due Diligence of Suppliers;
Reputation Index;
Compliance with the 2030 Agenda;
Reduction of GHG Emissions;
Certification of energy from clean sources; and
Energy saved by energy efficiency actions.
PRIORITY SDGS BY ELETROBRAS
43
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
2030 Agenda: Priority SDGs
With regard to our social and environmental activities, we will continue to prioritize actions and projects
that contribute to the 2030 Agenda, launched by the UN, and the Sustainable Development Goals
(SDGs). The priority SDGs for Eletrobras are:
Performance monitoring
We systematically monitor compliance with our strategies through performance indicators and
tactical-operational goals, according to the project management methodology used by high-
performance companies. We follow the good practices of the Project Management Body of Knowledge
(PMBOK), recommended by the Project Management Institute (PMI).
We have a Corporate Project Management Office (EGP) that monitors, analyzes and reports to senior
management the progress of the relevant initiatives and programs of the Eletrobras companies -
including those related to the PDNG and the annual variable remuneration of officers -, which allows
the identification of possible adjustments and corrective actions, or even the revision of plans. Partial
results are available quarterly on our portal.
We encourage the engagement of the workforce, managers and administrators in achieving our
strategic objectives through meritocratic management instruments. The Business Performance Goals
Contract is the main one, signed by Eletrobras companies since 2010. The document is aligned with the
business and management plans, and contains trend and results indicators in the financial, operational,
socio-environmental and management, integrity and people dimensions. The performance of the
companies demonstrates the degree of convergence with the Eletrobras holding strategy and impacts
on the annual variable remuneration of the managers and on the participation in the profits and results
of the workforce, including managers. The results also subsidize the performance evaluation of all
professionals, including the board members.
Performance and SDG
Some of the performance indicators
refer to the commitment to the
Sustainable Development Goals of the
2030 Agenda prioritized by Eletrobras
They are addressed throughout the
report and, in a consolidated manner, in
Annex I - Contribution to the SDGs.
44
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Among the indicators reflected in the Managers Annual Variable Remuneration Program, there is the SDG Alignment Index (IAO), which is the result of the
weighted attendance of a set of strategic indicators present in the 2030 Agenda and shows the degree of adherence of the Eletrobras companies' results to
their commitment.
Strategic Scorecard
Dimensions
Strategic Guidelines
Variable remuneration
of officers
Variable remuneration of
employees and managers
Associated SDG
Value and Investment;
Commercialization; and
New Business.
ECONOMIC-FINANCIAL
G&T Efficiency; and
Innovation and Digital Transformation.
G&T expansion; and
New Business.
Culture and People; and
Innovation and Digital Transformation.
OPERATIONAL
ENVIRONMENTAL
SOCIAL
Governance;
Management; and
Innovation and Digital Transformation.
GOVERNANCE, MANAGEMENT
AND OTHERS
64%
50%
0%
3%
5%
28%
30%
8%
5%
7%
Note: As an additional aspect of governance and compliance, the variable remuneration of officers and managers is subject to a potential deflator of up to 10% in case of non-timely compliance with
recommendations from the internal audit and control bodies.
45
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Investments
Eletrobras' investments totaled R$ 3.3 billion, which corresponds to 58.3% of the 2019 budget. Of this total, R$ 2.5 billion relate to corporate expenses and R$
840 million to partnerships. The distribution of resources is shown in the table below. In comparison with 2018, there was an increase of 34.2% in total corporate
investment in the generation segment, in contrast to a decrease of 33.7% in the transmission segment. In partnership investments, there was a decrease in
relation to 2018 in the total applied in generation and an increase in transmission.
The 2019 achievements follow the legal limit established by the Global Expenditure Plan and Ordinance M.E no. 563/2019 and Law no. 13.808/2019. The
allocation of resources is described throughout the report, especially in the Research & Development + Innovation sections (page 116) and Manufactured
capital (page 103).
Investments made
(in R$ million)
Investment (Corporate + Partnerships)
Budgeted 2019
% 2019
Performed 2019
Performed 2018
Performed 2017
Generation
Corporate Deployment
Corporate Expansion
Maintenance
SPEs Expansion
Transmission
Corporate Deployment
Expansion and Reinforcements and Improvements
Maintenance
SPEs Expansion
Distribution
Corporate Expansion
Corporate Maintenance
LPT (Dist) Corporate
Others1
Total
Note: 1. Others: Research, Infrastructure, Environmental Quality .
2,827
977
272
925
654
2,516
12
1,399
735
369
-
-
-
-
362
5,705
72%
72%
70%
53%
102%
42%
24%
49%
28%
46%
-
-
-
-
58%
58%
2,049
703
190
487
669
1,068
3
691
203
171
-
-
-
-
211
3,328
2,214
593
84
351
1,186
1,430
18
1,042
293
77
756
331
203
222
200
2,512
759
3
208
1,542
1,668
44
729
273
622
865
467
199
199
168
4,600
5,213
46
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
MANAGEMENT
SAP system implantation
SDG 9
In the beginning of 2020, the last phase of ProERP, the ERP SAP Implementation Program in a Single
Instance, was concluded, with Eletronorte going into production. In the same period, the acquisition of
Eletrobras Eletrosul by CGTEE was reflected in the ERP.
With the implementation of ProERP, we obtained an estimated annual savings of R$ 76 million - less
than what was realized in 2018, when the savings made with software licensing, which is non-recurring,
were considered. In addition to the financial benefit, the system provides a unique view of the business,
generating gains such as:
for the operationalization of the CSC (Shared Services Center);
greater agility in making business decisions through access to reliable information, in real time;
improvement of control in the physical and financial monitoring of projects;
ensuring the transparency and traceability of corporate information;
mitigation of problems and material weaknesses found in SOX audits;
access to information, consolidation and comparison of results of Eletrobras companies in a timely
and reliable manner;
process improvements and greater efficiency; and
gains in operation and maintenance with the implantation of WCM and adherence to the regulation
with adherence to Aneel standards, manuals and regulations.
With the implementation of ProERP,
we obtained an estimated annual
savings of R$ 76 million - less than
what was realized in 2018, when the
savings made with software licensing,
which is non-recurring.
47
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Shared Services Center (CSC)
GRI 102-10
With the implementation of the CSC, we centralized the transactional and support
activities for our companies in finance, accounting, human resources, supplies,
information technology, legal, logistics and infrastructure, and general services
processes. Our main objectives with the new structure are to provide greater capacity
for optimization in the use and allocation of internal resources and for
the coordination of policies and good practices within the entire Eletrobras System;
standardize the support processes of all controlled companies, improving control
over internal compliance levels; and to increase the transparency and visibility
of operations, due to the availability of data on business evolution and operational
performance.
The completion of the CSC implementation took place in 2019, when savings of R$
374.5 million have already been verified.
Throughout 2019, the following modules were
implemented in SAP:
EH&S (Environment, Health & Safety) module,
enabling better risk and information
management, with the integration of
occupational health and safety processes in
Eletrobras companies; and
Process Control (PC) and Risk Management
(RM) modules, from the SAP-Governance,
Risk and Compliance (GRC) suite, with the
objective of improving the risk management
and controls associated with Eletrobras
companies.
Still for 2020, the implementation of solutions for
fiscal management, audit management and to
support decision-making by senior management
are planned, in addition to robotization and
artificial intelligence solutions, such as a new
digital workforce, providing better processes
through automation and more efficient use of
human resources.
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STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Supplier management
GRI 102-9 | SDG 8
Eletrobras companies maintain a partnership
relationship with their suppliers, from selection
to the development of their activities,
maintaining a constant and transparent
dialogue and sharing the company's values
and ethical principles. Our main suppliers
are in the areas of technology, information
technology, telecommunications, engineering,
industry, transportation, resale, electrical energy
equipment, consulting in various areas and
cleaning and security services. The size of the
contracted companies is mixed - from micro
to large multinationals - and are spread across
Brazil and abroad.
In the hiring we promote and in the work processes
of the supply chain, we seek the adoption of
measures that contribute to the achievement of
the Sustainable Development Goals (SDGs) of the
2030 Agenda of the United Nations.
The Eletrobras Companies Supply Logistics Policy
guides the processes related to the logistics
of supplies of goSDG, materials and services
in Eletrobras companies, aiming at corporate
sustainability, the preservation of corporate
integrity and efficiency in the acquisition,
administration of goSDG and services and in
materials logistics.
The company's expectations regarding its suppliers are expressed in the Supplier Conduct Guide.
Contractual obligations determine that the due diligence of a supplier exposed to the risk of fraud and
corruption is responsible for knowing and complying with the principles and standards of the Guide, as
well as the guidelines of the Eletrobras Companies Integrity Program.
The selection of suppliers is carried out in accordance with the Regulations for Bids and Contracts
of the Eletrobras Companies, the Supply Logistics Policy and the Supplier Conduct Guide, that guide
business by internationally recognized management practices.
Number of suppliers contracted through bidding, dismissal and direct
contracting in 2019
Total amount contracted through bidding, dismissal, direct contracting
and additives in 2019
Estimated number of company suppliers
Percentage of new contracts
3,987
R$ 7,483,901,220.77
11,472
34.75%
Note: the number of suppliers contracted in 2019 portrays the new contracts through bidding, dismissal and direct contracting in all
companies, with the exception of Eletrobras Eletronuclear and Itaipu, which also consider small contracts (without dismissal). The same
occurs for the total contracted amount. Itaipu's contracts refer to those entered into in Brazil and Paraguay.
Total purchases
(all types of purchases
and signed contracts)
in 2019
Total purchases
(all modalities) with
local suppliers in 2019
Percentage of purchases
made with local
suppliers (%) GRI 204-1
R$ 3,004,572,889.18
R$ 1,908,548,447.31
63.52%
49
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Monitoring
SDG 8, SDG 16
The supplier is monitored throughout the
relationship with Eletrobras in several aspects,
among which we highlight:
The applicable measures in case of identified non-conformity are contained in the contractual
instrument, the draft of which is published on the company's website, to which the supplier has
access before signing the contract, in a timely manner to enable the analysis, negotiation and
proposal elaboration. Therefore, by signing the contract the supplier agrees to the terms established.
legal compliance;
economic and financial evaluation;
technical qualification;
compliance with established technical
specifications;
internal monitoring (contractual
management and inspection); and
due diligence for critical suppliers
(sustainability, human rights and integrity).
Suppliers of inputs or services essential to the company's core activity, which directly impact the final
quality of our services, the environment, the health and safety of employees and human rights; those
who have access to confidential information; exclusive suppliers or who deal with high financial volume
with the company; and those identified as high risk to the company's integrity are considered critical.
The process of identifying critical suppliers is carried out through analysis based on the criteria
established above. All contracted suppliers are included in a tool called the criticality matrix, which
automatically generates a classification (high, medium and low criticality), according to the score
obtained with the sum of the criteria.
At the end of 2019, this group totaled 1,734 companies, among which 405 completed integrity due
diligence forms (23% of critical suppliers)3, in which it is determined whether the company or any
member of its management has ever been accused, investigated, prosecuted or convicted of fraud or
corruption in the last ten years. GRI 205-1
We highlight two important milestones in the relationship with our suppliers in 2019. We held the first
National Meeting of Suppliers of Eletrobras Companies, when the the Supplier Catalog, was launched,
in which we present those who maintain a commercial relationship with the company. This material will
be updated periodically and, every year, it will bring news and great opportunities for dissemination of
our business partners and the work we are developing together - adhesion by suppliers is voluntary.
3. During 2019, Eletrobras CGTEE asked all of its suppliers to complete the due diligence form at the time of bidding.
50
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Eletrobras holding relates with suppliers through the website, Ombudsman, Complaints Channel
and periodic meetings, held to align strategic information regarding hiring and for the purpose of
constant engagement.
GRI 407-1, 408-1, 409-1
Total suppliers identified
as at risk for incidents
of child labor
Total suppliers identified
as at risk for cases of
young workers exposed to
hazardous work
Total suppliers identified
as having significant risk
for incidents of forced or
slave-like labor
74
103
158
Supplier dialogue and engagement
GRI 102-43
We hold annual meetings with suppliers to maintain and strengthen the engagement of this
audience. The entire management and relationship cycle is done with the support of the Strategic
Supply Logistics Committee of Eletrobras Companies (Celse), which analyzes and disseminates good
practices for sustainable bidding; establishes guidelines, rules and procedures for hiring processes in
line with current legislation; and manages the Supply Logistics Policy for Eletrobras Companies. Our
PDNG provides formal goals for the relationship with suppliers.
Belo Monte hydroelectric plant. Norte Energia Collection / Betto Silva.
51
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Information technology management
SDG 9
Digital transformation
GRI 103-1, 103-2, 103-3
The digital transformation begins to be a
reality - important projects that aim to change
the organizational culture, focusing on
digital, are bringing to the company a vision
of innovation, automation and efficiency. At
Eletrobras, digital transformation is not limited
to technology, but to a new way of looking at
yourself - multidisciplinary -, allowing you to
identify opportunities for improvement through
discussions that value team interaction with agile
methodologies, prioritizing process simplification
and automation, discussing new ways to learn
and accomplish. We understand that this is the
path that will lead us to a transformation that will
impact the company's business.
To achieve what is intended, the Eletrobras
Digital Program was launched, a way of
structuring, with methodology, the debate and
the convergence of ideas between all Eletrobras
companies. Among the objectives of the
program, we highlight the following:
FORMALIZE the digital transformation at
PDNG 2020-2024 as a guideline of the
Dimension of Governance, Management
and Critical Capabilities;
THINK of Digital as a vision of a culture
of transformation;
STIMULATE diversity and discussion, aimed
at enhancing the identification of
problems and innovative solutions;
PRIORITIZE demands that contribute to
efficiency and financial return; and
REALIZE, MEASURE AND CAPTURE results
with short-term actions, without losing
focus on business transformation.
At Eletrobras, digital transformation
is not limited to technology, but to
a new way of looking at yourself -
multidisciplinary -, allowing you to
identify opportunities for improvement
through discussions that value team
interaction with agile methodologies,
prioritizing process simplification and
automation, discussing new ways to
learn and accomplish.
52
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
GRI 103-1, 103-2, 103-3
The Eletrobras Digital Program was designed
to gradually adapt and expand, and currently
comprises four projects:
Eletrobots – Robotization and
hyperautomation to increase productivity,
transparency, traceability and quality of life:
aims to improve the control and progress of
the workflow, replace manual activities with
automated ones and monitor application in
real time;
Data Science Eletrobras – Intelligent, agile
and reliable information: aims to improve the
data culture in companies, integrating
technologies and forming analytical
capacities;
Digital Presence – Remote work with
productivity: aims to achieve greater
productivity and ensure, under any
circumstances, in a transparent manner, the
performance of corporate activities and
functions anywhere and on any device, with a
high degree of satisfaction; and
Business transformation – Accelerating
digital business initiatives: intends to enable
the emergence of new digital businesses in
Eletrobras companies, with the possibility of
new sources of revenue.
R$ 9.33 MILLION
HAVE ALREADY BEEN INVESTED
IN NEW TECHNOLOGIES
The transformation is being accelerated through
the implementation of a Single and Integrated
Business Management System, the SAP ERP,
implemented in all Eletrobras companies, in
addition to tools such as BMC Remedy, for
customer relationship management, and Clarity
PPM, a management system for projects,
programs and portfolios.
The transformation progresses towards
generation and transmission, through new
systems such as SOMA (System Oriented to
the Monitoring of Assets), developed by the
Eletrobras Research Center (Cepel), WCM
and AIS. These three systems integrated with
SAP ERP automate important maintenance,
operation and asset management processes.
In addition, the various demands for information
technology in companies are being met with the
joint purchase of integrated solutions - from
energy commercialization, legal management,
corporate mobility (mobile applications) and
management of digital and electronic signature
of documents in automated flow.
The transformation progresses towards
generation and transmission, through
new systems such as SOMA (System
Oriented to the Monitoring of Assets),
developed by the Eletrobras Research
Center (Cepel), WCM and AIS.
53
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Cybersecurity
GRI 103-1, 103-2, 103-3 | SDG 7, SDG 13
Among the risks monitored by Eletrobras is that of information security. We act to mitigate and avoid
events that compromise the availability, integrity, confidentiality and authenticity of corporate data
and information, or that cause damage, loss of information, financial loss, service outages, improper
dissemination or damage to reputation, among others.
To this end, we have adopted the Eletrobras Companies Information Security Policy and the
Eletrobras Companies Integrated IT Demand Management Regulation. In addition to these two
regulations, a plan of 32 activities was developed that seeks to improve the corporate environment
and increase maturity in the management of Information Security, reducing the probability of
materializing the monitored risks and/or reducing their impacts.
The planning of information security actions and the management of related risks are guided by the
NIST Cybersecurity Framework, developed by the National Institute of Standards and Technology
in partnership with the private sector. This methodology proposes business drivers to guide
information security activities, considering the risks related to the theme as part of the corporate risk
management process.
Resources are allocated according to the prioritization of actions, established by the Information
Security Plan. The training and qualifications are provided by the Corporate University of the
Eletrobras Companies (Unise), based on the definitions of the “Business Support - GRC Corporate
Governance Risks and Compliance” pillar, defined in the Corporate Education Plan.
System Operations Center. Eletrobras CGT Eletrosul Collection.
54
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
GRI 103-1, 103-2, 103-3
In accordance with the plan for 2019, the
following initiatives were carried out:
development and formalization of an
adequate Information Security structure,
including the clear definition of roles and
responsibilities;
development of vulnerability management
policies and procedures, including
remediation;
development, implementation and exercise
of incident response plan (IR);
according to the demands received from this
body, among which stand out, in 2019:
preparation of the governance design of the
information security process, including a
photograph of the areas involved and their
respective duties and responsibilities;
preparation of a minimum contingency plan
before 2022 for cyber-attacks/disasters in the
administrative and business areas;
preparation of an executive summary of the IT
contingency plans currently adopted in the
administrative and business areas;
development of a sensitive information
insertion of the pilot project implementation
classification program and the adoption of
appropriate tools;
schedule before the subsidiaries, the stipulated
targets and the addresses given to the
identified deficiencies; and
inclusion of the information security theme
in the corporate risk assessment;
inclusion of the number of cyber-attacks
development of the information security
strategy.
The Statutory Audit and Risk Committee
and Eletrobras' Board of Directors receive a
report on information security on a quarterly
basis. Management is continuously improved
suffered and defended in a given period, in
order to assess the robustness and/or
possible failures of the defense systems,
showing: the most relevant occurrences; the
impacts and losses potentially arising if the
attacks were successful; and the main
conclusions, with a critical evaluation of the
results achieved.
In order to establish guidelines for the
treatment of personal data, with the objective of
protecting the privacy of consumers, employees,
partners and promoting the management and
protection of personal data in the conventional
or technology environment of Eletrobras
companies, we have drawn up the Protection
Policy for Personal Data and Privacy. This is
one of the steps already accomplished that
are foreseen in the project to adapt Eletrobras
companies to the General Data Protection Law
(LGPD), a project that has four activity packages:
mapping, evaluation and adjustments in the
processing of personal data; legal adjustments
in regulations; compliance with the rights of
data holders; and learning and awareness. The
methodology for mapping and inventorying
personal data, training requirements and a bank
of contractual clauses with third parties have
already been completed, among other activities
provided for in the project.
55
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Costs management
Budget management
As a mixed-capital company, we follow the accounting rules applicable to Brazilian corporations,
established by Law No. 6.404/76 and subsequent amendments, as well as the Accounting
Pronouncements and other guidelines approved by competent bodies. As a participant in the electricity
sector, we also observe the standards issued by the National Electric Energy Agency (Aneel).
With regard to these standards, we have developed internal controls, which are determined by means
of accounting records, as well as by means of accounting accounts defined by the Electric Sector
Accounting Manual, established by Aneel. The records are made for the main purpose of complying
with the regulatory body and the accounting standards but are also used for management purposes.
The calculation of program costs is detailed in our Annual Letter of Public Policies and Corporate
Governance. The result is presented in the Financial Statements (DFs), in an Explanatory Note, with
the segregation of information by business segment. To learn more about cost management in the
company, consult our DFs and our Annual Accounts Process.
In 2019, we started the project to implement the Zero-Base Budget, which reinforces the culture of
cost management and transparency. It is a budgeting methodology that aims to reduce costs, allocate
resources based on strategic objectives and allow meticulous assessment of expenditures. Throughout
the year, we defined the budget preparation and control processes based on the OBZ methodology
customized for the context of the Eletrobras companies, and we also mapped a series of cost
optimization initiatives whose action plans will be executed over the next two years. At the beginning of
2020, the 2021 costing budget was prepared, already using the OBZ methodology, which provided the
elaboration of an optimized budget, very adherent to the companies' needs and objectives.
The methodology for calculating the legal
budget is established by the Secretariat for
Coordination and Governance of State Companies
of the Ministry of Planning, Development and
Management, and differs in some respects from
the rules of Corporate Accounting.
IN 2019, INVESTMENTS BY THE
ELETROBRAS SYSTEM TOTALED
R$ 3.33 BILLION
which corresponds to
58.3%
of the 2019
budget.
R$ 2.49 BILLION
of this total, relate to
corporate expenses and
R$ 840 MILLION
to partnerships.
The 2019 achievements are in accordance
with the legal limit established by the Global
Expenditure Plan, Ordinance M.E No. 563/2019
and Law No. 13.808/2019.
56
STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Risk, crisis and opportunity management
GRI 102-11, 102-15, 102-29, 102-30, 102-31, 103-1, 103-2, 103-3 | SDG 1, SDG 2, SDG 3, SDG 7, SDG 9, SDG 13, SDG 14, SDG 15
Our risk management process is integrated - coordinated by the holding company's Risk Committee
with the support of risk management and the committees present in all subsidiaries –, and its main
objective is to reduce the materialization of events that may negatively impact, in a relevant and
permanent way, our strategic objectives. This process is governed by a unique corporate policy,
which calls for the incorporation of the risk vision into strategic decision-making, in accordance with
applicable regulations and best market practices.
The model adopted is based on the ISO 31000 standard and the COSO 2013 and COSO ERM
frameworks (of the Committee of Sponsoring Organizations of the Treadway Commission), and part
of the identification and consolidation in matrix of the strategic, operational, financial and compliance
risks to which our companies are exposed for further evaluation, treatment and monitoring, in addition
to communicating to all interested parties in a clear and objective manner. It is also guided by Decree
8.945/2016 and Laws 13.303/2016, 12.846/2013 and Sarbanes-Oxley.
The risk management process is linked to the Board of Directors through the performance of the
Statutory Audit and Risk Committee, composed of members of the board itself and reporting directly
to the body. Through this committee, the board periodically deliberates on strategic issues in the
risk management process, such as the company's risk appetite, its tolerance ranges, the role of the
Executive Board in risk management and corporate policy.
The Executive Board, in turn, assesses the
assertiveness of the risk management system
and promotes the necessary improvements,
sponsors the implementation of risk
management in companies; allocates the
necessary resources to the process and
defines the appropriate infrastructure for risk
management activities. In addition, it approves
specific rules, defines the proprietary areas
of each risk and places itself against the risks,
considering the results of the analysis reported
by the Risk Managements and the appetite
limits approved by the Board of Directors. The
risks considered most relevant by the company
and their respective impacts are published in
documents such as Form 20-F, from the Security
and Exchange Commission, and the Reference
Form, from the Securities and Exchange
Commission.
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STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
In 2020, our risk matrix should be reviewed in
order to better reflect the PDNG 2020-2024
and we hope to finalize the implementation
and operationalize the automated SAP Risk
Management system.
Risk management model
GRI 103-2, 103-3
IDENTIFICATION
The survey,
classification and
prioritization of risks to
which the company is
or may be exposed
MONITORING
Follow-up with the
evolution of risks and
the implementation and
effectiveness of defined
mitigation measures
COMMUNICATION
Clear and objective reporting of all risk
management steps and results to all
parties involved in the process
ASSESSMENT
Conducting qualitative and
quantitative analyzes to define
the degree of exposure of the
company to the identified risks
TREATMENT
A decision between
accepting, transferring,
mitigating or avoiding
the risks to which the
company is exposed and,
if mitigation is chosen,
the defined action plans
to be adopted
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STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Main risks
GRI 103-2, 103-3, 102-15, 102-29, 102-31
After identifying the risks, the prioritization process takes place, whereby senior management defines which risks are most relevant to the company in the
current analysis cycle. To support its decision, senior management takes into account the risk appetite, the results of previous risk analysis and specific data
related to the company's activities. Some of the risks considered to be the most relevant for Eletrobras are shown below.
COMPLIANCE
Legislation and Standards
STRATEGIC
Business model
FINANCIAL
Liquidity
OPERATIONAL
Generation and Marketing
Report
Corporate governance
Investments
Market strategy
Image & Reputation
Market
Credit
Assets
Taxes
Transmission
Socio-environmental
Supplies
Legal
Equity Security
Union Funds and Asset
People Management
Management
Budget
Information Technology and
Telecommunication (TIC)
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Compliance
GRI 103-2, 103-3
In order to provide greater robustness and maturity to the processes related to the integrity issues of
the companies in its system, Eletrobras implemented, in 2016, and continues to improve, its Eletrobras
5 Dimensions program, currently the Integrity Program (Compliance). This is Eletrobras' main initiative
for dealing with issues of integrity and compliance with laws such as Sarbanes-Oxley, Foreign Corrupt
Practices Act and LACBRA and with the rules and guidelines of bodies such as Security Exchange
Commission, Securities and Exchange Commission, Brazilian Institute of Corporate Governance and
Organization for Economic Cooperation and Development.
The Integrity Program (Compliance) covers all Eletrobras companies and its main activities include
the development of the management environment, the periodic analysis of risks, the structuring and
implementation of policies and procedures, the communication and training of employees and others
involved in the process; and the monitoring of the program, remedial measures and application of
penalties. As actions for improvement, the consequences policy of the Eletrobras companies and an
independent and external reporting channel were launched, and the Code of Ethical Conduct and
Integrity was updated. Sensitive points of improvement were also adjusted, including the structuring
of policies and documents for obtaining a healthy environment, conducting background checks
on representatives (background check of directors and board members) of Eletrobras companies,
conducting due diligence for suppliers, sponsorships, covenants, social projects and donations, and the
structuring of the due diligence monitoring process with critical suppliers.
In addition, the inclusion of integrity analysis rules in the company's divestment process and the
approval and disclosure of the Corporate Consequence Policy, in which sanctions for deviations in
conduct and proven activities that are in disagreement with integrity practices, are highlights of the
company, in addition to the Anti-Corruption Policy and the Conflict of Interest Management Policy of
Eletrobras Companies, the latter approved in 2019. In addition, new training was recently conducted for
all Eletrobras System employees on the subject.
The inclusion of integrity analysis rules
in the company's divestment process
and the approval and disclosure of
the Corporate Consequence Policy,
in which sanctions for deviations in
conduct and proven activities that are in
disagreement with integrity practices,
are highlights of the company, in
addition to the Anti-Corruption Policy
and the Conflict of Interest Management
Policy of Eletrobras Companies, the
latter approved in 2019.
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Socio-environmental management of projects
GRI 103-2, 103-3
Climate changes
GRI 103-2, 103-3, 201-2
The risk assessment of socioenvironmental management of projects in
Eletrobras companies, including the pre-operational and operational
stages of generation and transmission projects, aims to verify the
Eletrobras System's exposure to socioenvironmental risk and the degree of
effectiveness of the mitigation actions implemented by their companies.
In this sense, we have a corporate environment policy to guide our actions
with respect to environmental and social issues related to dealing with
local and indigenous communities. The document contains guidelines for
relocating local communities and addressing issues involving indigenous
communities, fauna and flora. In addition, we always seek to assess the
viability of the projects in which we invest, whether of generation or
transmission, using the best available information and methodologies,
including socio-environmental aspects as a decision-making criterion.
Climate change is the product of several natural factors. However, they
have been intensified by anthropic action that is increasingly invasive to
the environment. In this regard, Eletrobras companies understand that it is
important to guarantee the performance of control activities, such as:
ensure that issues related to climate change are dealt with in
company activities;
ensure that companies are aware of their vulnerabilities related to
climate change;
ensure that a set of measures is implemented to guarantee the
adaptation of the electricity generation and transmission systems to the
effects of climate change;
Still on mitigation measures and considering the relationship of the
companies in the system with the surroundings of their ventures, we carry
out studies of the watershed inventory, feasibility studies and environmental
impact studies, seeking to conceive locational alternatives and project
arrangements in order to propose, whenever possible, the reduction of
physical displacement and socioeconomic impacts on the population.
check if there are service providers or suppliers located in areas
susceptible to the effects of the risk of climate change and/or that act in
disagreement with the legislation and regulations in force on the subject;
ensure that there is knowledge of the socio-economic effects of climate
change; and
Under the aspect of relationships with local and indigenous communities,
measures that contribute to the mitigation of this risk are listed in the
procedure manuals for field activities and service to the public.
verify whether, on the part of companies, the development of the
National Policy on Climate Change or other policies and regulations
related to the theme are monitored, such as the carbon credit market.
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In this sense, some actions are already being
implemented by the Eletrobras System
companies, such as:
constant discussions about climate change,
generating proposals for more in-depth
studies on the topic;
creation of Task Force 1 (FT1) on Adaptation
to Climate Change, responsible for preparing
a report with diagnoses about risks and
opportunities, identifying the internal
environment, analyzing the climate,
prioritizing risks and proposing adaptation
measures; and
conducting research in order to identify
opportunities for applying “Ecosystem
Based Adaptation” measures to
Eletrobras companies.
Panorama of the spillway springboard of the Itaipu hydroelectric plant. Itaipu Binacional / Caio Coronel collection.
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Human Rights
GRI 103-2, 103-3
The analysis of human rights risk in Eletrobras companies seeks to map their
exposure to events, situations or practices that may lead to the violation of
these rights, directly or indirectly. Accordingly, there are initiatives in place
and targets foreseen within our companies to inhibit practices that may
lead to these violations. Among the initiatives already implemented,
we can mention:
the inclusion of human rights indicators/targets, such as training 100% of
employees and level 1 suppliers (critical suppliers) in human rights
practices by 2021; conducting due diligence on human rights of 100% of
tier 1 suppliers by 2021; and obtaining a percentage of women in
management positions at least equal to the total percentage of women in
Eletrobras companies;
the adoption of human rights commitment clauses and penalty of
contract termination if suppliers are in disagreement with values and
commitments related to human rights, preached by Eletrobras;
the adoption of a Supplier Conduct Guide;
the inclusion of thematic human rights guidelines in the Eletrobras
Companies Social Responsibility Policy;
formalization and training in the Code of Ethical Conduct and Integrity;
the elaboration of the Procedure Manual for Field Activities and Public
Service, developed within the scope of the Communication and Social
Interaction Plans of the projects;
the adoption of appropriate language in communication materials on
the socio-environmental impacts of the projects to be used in the
interaction with the affected communities, particularly the traditional
and indigenous populations; and
the constitution of a Human Rights Working Group formed by
representatives of the Eletrobras Companies’ Social Responsibility areas
for the discussion and preparation of the Eletrobras Companies’ Human
Rights Action Plan, aiming to internalize and multiply these practices in
companies and their relationship chains.
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Nuclear generation
GRI 103-2, 103-3
As an operator of nuclear generation plants,
Eletrobras Eletronuclear is the company in
our system responsible for the treatment and
monitoring of risks related to this type of power
generation. For this reason, the company is even
subject to strict liability, according to Brazilian
law, for damages in the event of accidents
caused by the operation of Angra 1 and 2
plants. Internationally, the Vienna Convention
also establishes that operators of this type are
responsible for damages related to a nuclear
accident. Thus, the Angra 1 and 2 plants operate
under the supervision of the National Nuclear
Energy Commission and are subject to periodic
inspections by international agencies, such as
the International Atomic Energy Agency and the
World Association of Nuclear Operators.
Eletrobras Eletronuclear invests approximately
R$ 100 million per year both in modernization
and in the incorporation of the latest safety
requirements for its plants. As an example,
the Multi-annual Plan for studies and projects
carried out in response to the accident in
Fukushima, Japan, can be mentioned. In
this context, following the guidelines of the
international nuclear industry, the company
carried out a wide and recent reassessment
of the risk associated with events resulting
from extreme environmental conditions. In
addition, in line with the international nuclear
industry, Eletrobras Eletronuclear verified the
conditions of response of Brazilian plants to
Fukushima, Fukushima-type accidents, which
are not predictable and which greatly exceed
the limits of the plant's project base, following
robustness verification procedures adopted by
the European Union called “stress tests.” As a
result of this process, Eletrobras Eletronuclear
has been implementing several complementary
security measures. The company always seeks to
comply with all preventive and safety actions to
completely avoid any chance of accidents
or contamination.
Angra 2 thermonuclear plant 2. Eletrobras Eletronuclear collection.
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AND ETHICS
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Hydroelectric generation
GRI 103-2, 103-3
The main source of power generation used by Eletrobras is water and there
are several risks associated with this type of generation. Currently, for
the company as a whole, the most important risk related to hydroelectric
activity is hydrological, which consists of maintaining a systemic production
level below the physical guarantee of the plants that make up the regulated
energy market (MRE). This risk may materialize mainly due to the water
scarcity factor. Thus, we seek to guard against its materialization through
two mechanisms. The first consists of the renegotiation of the hydrological
risk which, introduced by Law 13.203/15, allows the hydrological risk
borne by the hydroelectric generation agents participating in the MRE to
be renegotiated by the generators against consideration (risk premium).
The second, on the other hand, resides in the realization of “Energy
Hedge” - in the remaining amounts of energy that are not supported by the
renegotiation, the controlled companies reserve an amount of energy for
hedge purposes (establish “clearances” in the availability of energy for sale
in cases of very severe droughts, that is, they are not fully contracted in all
their availability). In practice, companies stop selling this amount of energy,
causing the risk of exposure to the Short-Term Market (MCP) as a result of
the GSF to be reduced.
Dam safety
GRI 103-2, 103-3
The management and monitoring of dam safety risk in the Eletrobras
system is carried out locally in our controlled companies, at the level of
technical and management excellence. Eletrobras holding establishes
governance and management over this process, ensuring the adequate
flow of information and the resources necessary for its execution. In
addition to always aiming for compliance with current regulations,
keeping the dams that make up our assets at a high level of reliability
and safety, we are constantly evolving, providing our human resources
with participation in the various national and international forums and
committees that address the theme.
Furnas hydroelectric plant. Eletrobras Furnas Collection.
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The dams and civil structures that make up our
assets undergo Periodic Safety Reviews (RPS),
observing the current legislation. In addition, as
a direct demand of our Board of Directors, the
mandatory requirement for these reviews to be
carried out by independent external appraisal
agents is being incorporated into the internal
regulations of the Eletrobras companies.
Since 2017, the entire dam safety macroprocess,
considering governance, formal and structured
communication with society and the flow of
information on this risk, has been updated and
revised. As a fundamental initiative, Eletrobras
companies, through the creation of the
Subcommittee on Dams and Civil Structures
(SBEC), established a permanent forum for
dialogue, technical updating and exchange
of experiences. One of the main products of
this initiative was the joint construction of the
Eletrobras Dam Safety Policy, already approved
internally at all levels of governance.
Likewise, we are currently focusing on internal
structuring for the effective implementation
of Emergency Action Plans (PAEs) with the
communities and municipalities covered by
their projects.
Power transmission
GRI 103-2, 103-3
The substations and power transmission lines
of the Eletrobras companies operate in several
regions and climates in Brazil. They make up 45%
of the entire transmission system of the National
Interconnected System (SIN), for lines with a
voltage equal to or above 230 kV. Currently, for
the company as a whole, the most important risk
of this operation is related to the unavailability of
transmission lines and/or power substations. In
accordance with the regulatory indicators of the
unavailability of these assets, we may incur direct
penalties on our financial income. There are two
most relevant risk factors to be considered for
the unavailability of assets: extreme weather
events and natural accidents with different
causes (such as lightning strikes, extreme
winds, out of control fires, among others);
and the long useful life of assets in operation,
which are less resilient to changes in operating
conditions, especially when considering
operating conditions not initially foreseen in
the electrical planning of the system, such as
momentary overloads, compliance with electrical
contingencies, drastic variations in electrical
variables and other operating conditions that
may exceed their limits.
In order for these factors to be mitigated, we
constantly invest in maintaining and monitoring
the operating conditions of our lines. Currently,
most of the substations undergo processes
of modernization of the monitoring and data
communication infrastructure, providing
operational automation and centralized
monitoring of the parameters, adding a systemic
and unified view of the assets in operation.
In addition, through regulatory action, we
contributed to Public Consultation 006/2019
- Aneel, which deals with this topic, and
participated in the “Working Group - Useful Life,”
created within the scope of the Transmission
Committee of the Brazilian Association of Base
Industries (Abdib) and which is in negotiations
with Aneel and the National Electric System’s
System Operator to define an additional portion
of transmission revenue, due to the greater risk
involved in the operation of these assets, in
addition to other important points.
In order to mitigate the impacts of adverse
climatic effects and natural accidents on
its assets, we have maintained our own
operational teams, with a high level of technical
training, as well as full availability of means to
replace priority equipment for the operation,
always mobilized for immediate assistance to
contingencies, aiming at strengthening the
operational excellence culture.
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Transmission operation and maintenance risk
GRI 103-2, 103-3
The management of the transmission assets of the Eletrobras System is done locally, in the same way
as with generation assets. This management is carried out with a high degree of excellence, in order to
always guarantee the availability and reliability of the systems; and to meet the norms and regulations
foreseen for the sector.
In the 2020-2024 PDNG cycle, Eletrobras companies plan to invest in improvement projects and
reinforcements in their transmission systems that jointly meet the demands for optimizing the flow of
energy in the National Interconnected System, also allowing greater flexibility for the National Operator of
the System, adding, in general, reliability to the system and a high level of security and operational stability
to the existing assets.
The analysis of the risk of operation and maintenance of transmission networks considers, among other
factors, the consequences of possible climatological events on the transmission activities of Eletrobras
companies. In this regard, the possibility of events such as gales, fires, cyclones, storms, floods and
lightning strikes around our lines is evaluated.
Based on this assessment and in order to reduce the impacts of these events on their transmission assets,
Eletrobras companies have defined emergency measures and plans. Among the mitigation actions
provided for are the definition and implementation of the Emergency Action Plan on Transmission Lines
(PAE LT) and the procedure for action in case of fires. The PAE LT was developed in a way to guarantee the
rapid response of emergencies in case of fall of towers or rupture of conductive cables. The actions are
standardized and were established based on good maintenance practices, improved over the years by the
technical staff of the Eletrobras companies.
The PAE is approved by the Operations
Directorates of Eletrobras companies and
periodically updated with the experiences of its
use. The procedures are aimed at minimizing
the recovery time of transmission lines in the
event of a fall in structures, observing standards
established by Aneel Normative Resolution
729/2016, resulting, in most cases, in total
exemption from the Variable Parcel (PV) and the
restoration of lines. In the case of fires in the
vicinity of the transmission networks, especially
those known to be intentional, companies
notify the person in charge of the property and
send a communication to Previfogo (Ibama),
reporting what happened (disconnection and
cause) for the applicable legal measures. As a
means of proving mitigating actions, in the case
of fire shutdowns, companies follow up and
monthly report to Aneel on the performance
of inspections and cleaning services on the
lanes through the Geospatial Management of
Transmission (GGT) system.
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Regulatory changes in the electricity sector
GRI 103-2, 103-3
There are several agents and government
agencies that can promote regulatory changes
with possible risks for Eletrobras companies.
Among the main ones, directly linked to the
electricity sector, are the Ministry of Mines and
Energy (MME), Aneel, the Electric Energy Trading
Chamber (CCEE) and the National System
Operator (ONS), among others. Even regulatory
changes coming from other agencies, ministries
or entities of the federal power not directly
linked to the electricity sector, such as, for
example, the National Water Agency (ANA) and
the Legislative Branch, can impact Eletrobras.
Even considering Aneel's regulatory agenda,
regulatory changes are difficult to predict, and
may have a serious impact on the financial
condition and results of operations by Eletrobras
and its subsidiaries, such as Law 12.783/2013.
Currently, the main risk related to the regulatory
environment is the expected changes and
impacts, which are still difficult to measure,
to be provided by the evolution of Public
Consultation 33/2017, whose objective is to
improve the legal framework of the Brazilian
Electric Sector (SEB). In October 2019, the MME
presented the Report of the Electric Sector
Modernization Working Group, composed of
members of the main agents responsible for
planning on this sector: Aneel, CCEE, ONS
and Energy Research Company (EPE, linked to
MME). The proposals for modernization of SEB
considered in the report are guided by the basic
guideline of bringing electricity to consumers in
a competitive way, ensuring the sustainability
of the expansion, promoting the opening of the
market and the efficiency in the allocation of
costs and risks. Thus, considering the regulatory,
legal and operational aspects, we can consider
that the changes forecast for the coming years
will be very impacting for the electricity sector in
general. Specifically, for Eletrobras companies, it
is worth considering that the energy generation,
transmission and commercialization businesses
will be impacted, that is, the entire value
generation chain of the company.
To mitigate these risks, we have our own teams
specialized in sectoral regulation. Through
monitoring actions, participation in public
hearings and consultations and specialized
Even considering Aneel's regulatory
agenda, regulatory changes are difficult
to predict, and may have a serious
impact on the financial condition and
results of operations by Eletrobras and
its subsidiaries.
technical forums, in addition to sectoral
associations, matters are deeply discussed by
all Eletrobras companies that, in a coordinated
manner, presenting their contributions to
events of regulatory changes. The main marker
of the company's regulatory planning is,
currently, Aneel's Regulatory Agenda, for the
2020-2021 biennium.
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COMMITMENT TO SUSTAINABILITY
SDG 7, SDG 8, SDG 9, SDG 13, SDG 16
Our Sustainability Management System is based on five main elements: the Eletrobras Companies
Sustainability Policy, the Executive Committee for Sustainability Management of Eletrobras Companies,
the Corporate Sustainability Management Indicators System (IGS System), the Value Creation Model
and Integrated Reporting.
SUSTAINABILITY POLICY
The Eletrobras Companies Sustainability
Policy establishes the guidelines that guide
the actions of Eletrobras companies regarding
the promotion of sustainable development,
seeking to balance business opportunities with
social, economic-financial and environmental
responsibility. It was updated in 2019, after
a large contribution from the Executive
Committee on Sustainability Management,
aiming to follow the evolution of issues related
to sustainable development, value generation,
ESG (Environmental, Social and Governance -
ESG) themes, in addition to improvements in
integrity and corporate governance guidelines.
EXECUTIVE COMMITTEE FOR
SUSTAINABILITY MANAGEMENT
The Executive Committee for Sustainability
Management of Eletrobras Companies, aims
to promote and disseminate sustainability
actions within the System, manage the
Value Creation Model, as well as promote
integrated management of the economic,
social and environmental dimensions in
order to internalize, disseminate and give
transparency to the process of implementing
the 2030 Agenda for sustainable development,
subscribed by Brazil and supported by
Eletrobras. The commission is led by the
holding company and has sustainability
coordinators from all Eletrobras companies,
in addition to being responsible for reporting
and indicators on 30 topics related to the
sustainability of our business.
SUSTAINABILITY MANAGEMENT INDICATORS SYSTEM
The Corporate Sustainability Management
Indicator System (IGS System), developed by
Cepel, is part of the portfolio of institutional
projects for Research & Development +
Innovation by Eletrobras companies and
has been widely used to manage indicators
on topics related to the sustainability of
our business, as well as a collection tool for
information from our corporate reports.
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VALUE CREATION MODEL
More broadly, the sustainability theme permeates the various
processes inherent to the business of Eletrobras companies, and
an integrated action from their areas is essential, in a coordinated
manner, fostering best practices and business continuity, as well as
enhancing value generation to all its stakeholders. In this sense, the
Value Creation Model was updated in 2019, when 30 expectations of
value generation were identified, as shown on page 27.
INTEGRATED REPORTING
The Integrated Report, as a complement to the GRI methodology,
has been helping companies to value and better communicate their
value creation process to their stakeholders. Since 2018, the holding
company has presented its report in a “full integrated” format. The
main purpose of an integrated report is to explain to providers of
financial capital how an organization generates value over time.
The evolution of integrated reporting at Eletrobras promotes a
more cohesive and efficient communication of corporate reports,
the connectivity of tangible and intangible information on capitals
(financial, manufactured, intellectual, human, social, relationship
and natural), resulting in the adoption of the model in this report.
Eletrobras' Annual Report 2018 is among the ten best integrated
reports and competes for the CR Reportings Awards'20 in the Best
Integrated Report category.
In 2019, we entered the portfolio of B3's Corporate Sustainability Index
(ISE) again, composing it for the 12th time. Since 2005, ISE groups publicly
traded companies with the best commitments and practices in the areas
of corporate governance, economic-financial, social, environmental and
climate change. Composing the portfolio is a reflection of the consistency
and solidity of our commitment to results for Brazilian society and
the implementation of the best national and international corporate
sustainability practices.
In addition to the integration between its controlled companies, Eletrobras
is in constant interaction with other companies in the market, in direct
relationships or through its participation in forums such as the Brazil
Network of the Global Compact, being a member of its Guiding Council,
of the Brazilian Business Council for Sustainable Development, CEBDS,
and has strengthened relations with the World Business Council for
Sustainable Development, the WBCSD, where the sharing of experiences
has led to the improvement of business processes, collaborating for
sustainable development.
We potentiate our contribution to sustainability beyond business and
we support priority causes for the country. We have been signatories to
the Global Compact since 2006 and, in 2017, we integrated our strategy
with the UN Sustainable Development Goals (SDGs). This alignment
demonstrates our commitment to sustainable development and
strengthens ties with civil society and governments, working to promote
and implement public policies.
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Greater incorporation of sustainability into management
GRI 103-1, 103-2, 103-3
Sustainability is our way of doing business. One of the significant advances
in 2019 was to further insert sustainability practices into the company's
day-to-day business. Indicators and guidelines related to the theme and
its dimensions have been included in the latest reviews of management
documents in a prominent way. We updated the Communication and
Social, Environmental, Sustainability and Anti-Corruption Policies and
updated our Value Creation Model.
In addition, once again, we materialize our commitment to sustainable
development by associating variable remuneration, not only for
administrators, but also for managers and employees, with the
achievement of sustainability goals. In this way, its materialization
becomes palpable and daily, forming an integrated part of the
management processes.
Other stakeholders to whom we have given special attention are
shareholders, who are increasingly concerned with sustainability. As we
trade shares on the stock exchange, we receive several questions, which we
have placed on the agenda in management decisions. The perceptions of
this and other strategic audiences are also considered for the preparation of
this report, as can be seen on page 7. We have also continuously quantified
our negative and positive impacts on our stakeholders within our value
creation model, which guides us towards preventing, mitigating or dealing
with these events.
The goal for 2020 is to maintain this culture of sustainability and
identify opportunities for evolution in this direction. We must increase
the engagement of the internal public through notices, videos,
communications, among other communication tools, always relating our
actions to the Sustainable Development Goals.
As a result of the analysis of trends and best market practices with regard
to corporate sustainability, we developed the Sustainability 4.0 Program,
which is part of the Business and Management Master Plan for the period
from 2020 to 2024 (PDNG 2020-2024).
The program is motivated by the Eletrobras Companies Materiality
Matrix, the PDNG 2020-2024, the Sustainability Policy, the commitment
to the 2030 Agenda and the Sustainable Development Goals (SDGs),
the main sustainability indexes and the main Environmental, Social
and Governance (ASG) themes. It consists of several projects that
aim to promote excellence in terms of sustainability in the Eletrobras
companies' businesses and the generation of value for all stakeholders,
involving topics such as management and people development; health,
safety and well-being; synergy with industry 4.0; human rights; supplier
management; transparency and dialogue with stakeholders; corporate
governance; socio-environmental factors in risk management; energy
transition; climate changes; water; biodiversity; waste management;
energy efficiency; certification of energy from clean sources; and
sustainable management of financial capital.
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CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Monitoring of the PDNG targets by
priority SDGs
GRI 103-3
Voluntary commitments
GRI 102-12
In 2019, we defined 16 indicators and
respective targets for the five SDGs prioritized
by Eletrobras. The regular monitoring and
analysis of the companies' performance allows
the elaboration of action plans, identifying
positive and negative impacts, and promoting
and sustaining the creation of value for the
interested parties. In addition, as the indicators
and targets are also linked to the 2019-2023
Business and Management Master Plan -
Challenge 23 and to the variable remuneration
of administrators and employees (learn
more on pages 84 and 85), they make the
implementation of the 2030 Agenda consistent.
Reporting on this process is a strategic tool
to support decision-making processes and
encourage organizational development,
reinforcing the commitment to sustainability
and the SDGs.
We present our 2019 results on the following
pages. On page 190, we published Annex I:
Contribution to the SDGs, which show our efforts
and vision for the future to achieve, by 2030, our
commitments related to the theme.
We voluntarily endorse national and
international initiatives that debate social,
environmental, economic and human
rights issues in business, in order to expand
our potential to contribute to sustainable
development. We also participate strategically
in organizations focused on promoting
sustainability on different topics relevant
to the business.
In 2019, we joined the Brazilian Business
Commitment to Biodiversity, launched by the
Brazilian Business Council for Sustainable
Development (CEBDS) with nine goals to be
achieved by 2030 related to biodiversity and
ecosystem services, in line with national and
global strategic plans for biodiversity. We are also
signatories to the Water Resources Commitment,
also from CEBDS.
Supported commitments and initiatives
GRI 102-12
Pro-Gender and Race Equity Program,
since 2005;
UN Global Compact;
Declaration of Commitment to Combat
Sexual Exploitation against Children and
Adolescents;
Principles of Women's Empowerment;
Sustainable Development Goals (SDGs);
Brazilian Business Commitment for Water
Security of the Brazilian Business Council for
Sustainable Development (CEBDS);
Business and Indigenous Peoples Dialogue;
Carbon Disclosure Program (CDP);
Open Letter - Private Sector supports Carbon
Pricing Brazil;
Positioning on CEBDS carbon pricing
mechanisms;
Business Open Letter for Human Rights,
created under the former Ministry of Human
Rights, in force since 2018; and
Brazilian Business Commitment to
Biodiversity of CEBDS.
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STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Organizations we participate | GRI 102-13
Corporate sustainability
Social
Brazilian Business Council for Sustainable Development (CEBDS) - we
have a seat on a governance body and participate in the Thematic
Chambers of Water, Energy and Climate Change, Biodiversity and
Biotechnology and Social Impact, in which we are co-leaders;
Brazilian Global Compact Committee (CBPG) - we work in thematic
groups, such as Energy and Climate;
Global Reporting Initiative (GRI Community); and
Ethos Institute of Business and Social Responsibility.
Intrasectoral Articulation Center of the Companies and Indigenous
Peoples Dialogue Initiative - we participate in projects/commissions; and
Human Rights Working Group of the UN Global Compact Brazilian
Committee – we participate in projects/commissions.
Sectoral development
Electric Energy Trading Chamber (CCEE);
Brazilian Association of Thermoelectric Generators (Abraget);
Brazilian Cier Committee (Regional Energy Integration Commission -
Business management
Brazilian Institute of Corporate Governance (IBGC); and
Bracier);
National Forum on Ethics Management in State-owned Companies.
Environment
Brazilian Committee on Dams (CBDB);
Brazilian Association of Electricity Generating Companies (Abrage);
Brazilian Electric Sector Environment Forum (FMASE) - we have a seat on a
Brazilian Association of Large Electricity Transmission Companies
governance body and participate in projects/commissions.
(Abrate);
Climate changes
Brazilian Forum on Climate Change (FBMC); and
Companies for the Climate (EPC).
Water
Brazilian Wind Energy Association (ABE Eólica);
Brazilian Nuclear Energy Association (ABEN);
World Nuclear Operations Association (WANO); and
National Water Resources Council (CNRH); and
World Nuclear Association.
World Water Council (WWC).
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STRATEGY AND VISION FOR THE FUTUREANNUAL REPORT ELETROBRAS 2019 CORPORATE
GOVERNANCE AND ETHICS
74
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
CORPORATE GOVERNANCE
GRI 103-1, 103-2, 103-3 | SDG 16
Our governance practices are guided by the principles of ethics, transparency, equity, accountability
and corporate responsibility. As a publicly traded company with shares traded in Brazil, the United
States and Spain, we follow the requirements of the Brazilian Securities and Exchange Commission
(CVM) and B3 (Brasil, Bolsa, Balcão), the Securities and Exchange Commission (SEC) and the New York
Stock Exchange (Nyse), and Latibex, the Madrid Stock Exchange.
Our commitment to the best management practices is expressed in our listing on Level 1 of Corporate
Governance at B3, as well as in the certification in the Outstanding Program in State Governance of that
same exchange and the achievement of the level of excellence in the IG- Sest (Certification of Federal
State Companies) indicator, of the Secretariat of Coordination and Governance of State Companies
(Sest), linked to the Ministry of Economy. And we are also annually evaluated by independent auditors
during the Sarbanes-Oxley certification (law that establishes governance rules related to disclosure
and issuance of financial reports) and, every two years, we have our integrity program audited by the
Federal Comptroller General (CGU). Our internal control environment (main management, support and
operational processes) is also periodically evaluated by our internal audit teams, who also verify the
implementation and operation of governance, risk and compliance functions.
2019 was marked by the integration of these functions at Eletrobras. The Executive Board promoted a
restructuring in which the area responsible for the development of corporate governance practices was
incorporated by the Compliance Board, which already dealt with risks, internal controls, information
security and anti-corruption compliance (corporate integrity). We also created the Regulatory
Compliance area, which started to add value to the strategy of updating, planning and disseminating
these documents, and to mitigating the risks of non-compliance.
.
The Executive Board promoted a
restructuring in which the area responsible
for the development of corporate
governance practices was incorporated by
the Compliance Board, which already dealt
with risks, internal controls, information
security and anti-corruption compliance
(corporate integrity).
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Corporate governance highlights
GRI 103-2, 103-3
Members of the holding’s Executive Board who participate in the Boards of Directors of all controlled companies;
Existence of a single Code of Ethical Conduct and Integrity adopted by all Eletrobras companies;
Board of Directors comprised by 55% independent members;
Different communication channels for receiving complaints and/or denunciations;
Certification of internal controls by administrators (CEO and CFO) and independent auditors, with a transparent approach to any deficiencies and
their remediation plans;
Administrators and Fiscal Council members subject to the assessment of the requirements and prohibitions provided for in Law No. 13.303/2016
and Decree No. 8.945/2016;
Existence of support committees for the Board of Directors - Statutory Audit and Risk Committee; Strategy, Governance and Sustainability
Committee; and Management, People and Eligibility Committee;
Independent annual assessment of the members of the Board of Directors, the Executive Board and the Board;
Annual Report produced in accordance with the Global Reporting Initiative (GRI) Standards*, and in compliance with the framework of the
International Integrated Reporting Council (IIRC);
Listing in B3’s Corporate Sustainability Index (ISE) portfolio; and
Certification at Level 1 (level of excellence) of the Governance Indicator - IG-Sest, developed by Sest, of the Ministry of Economy, with the objective
of assessing compliance with the legislation and guidelines established by the Interministerial Committee on Corporate Governance and
Management of Union Equity Holdings (CGPAR), in the search for the implementation of the best market practices.
* The term “guidelines” used in the Portuguese version of this Report, was excluded in its English version, to better represent the GRI Materiality Disclosures Service requisites.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Policies and instruments
GRI 103-2
Management Structure
GRI 102-18, 102-22
We have an institutional structure of
management policies and instruments that is
continuously updated, establishing standards,
values and behaviors to be observed for good
business governance. The documents are
available in the Corporate Governance section
of the Eletrobras website. The main ones are
listed below:
Bylaws;
Manuals, guides and regulations;
Guidelines, codes and policies to guide
conduct and commitment on different
aspects and relationships involving strategic
themes, such as the promotion of ethics,
compliance, integrity, risk management
and sustainability;
Specific policies on topics relevant to the
operation of the business (e.g.: systems,
people management, project management,
etc.); and
Internal rules and regulations of the
governance bodies.
GENERAL MEETING
BOARD OF DIRECTORS
PRESIDENCY
FISCAL COUNCIL
STRATEGY, GOVERNANCE
COMMITTEE AND SUSTAINABILITY
COMMITTEE OF MANAGEMENT
PERSONNEL ELIGIBILITY
AUDIT AND RISK COMMITTEE
DIVESTMENT COMMISSION
AUDIT INTERNAL
OMBUDSMAN
CALCULATION
OF COMPLAINTS
SECRETARIAT
OF GOVERNANCE
GENERATION
BOARD
BOARD OF
TRANSMISSION
BOARD OF GOVERNANCE,
RISK AND COMPLIANCE
FINANCIAL BOARD
AND RELATIONS
WITH INVESTORS
MANAGEMENT
AND SUSTAINABILITY
BOARD
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Board of Directors Profile
GRI 102-22
6
7
1
INDEPENDENT MEMBERS out of a total of 11 on the Board of Directors
advisers appointed by the STATE MINISTER FOR MINES AND ENERGY
advisor appointed by the STATE MINISTER FOR THE ECONOMY
advisor appointed by MINORITY SHAREHOLDERS HOLDING COMMON SHARES
advisor appointed by MINORITY SHAREHOLDERS HOLDING PREFERRED
SHARES ISSUED BY ELETROBRAS
advisor elected as EMPLOYEE REPRESENTATIVE
Unified management term of 2 YEARS, with 3 CONSECUTIVE RENEWALS allowed
1.48 YEAR is the average length of time that board members remain
on the board
PLURAL ACADEMIC BACKGROUND IN: economics, electrical engineering, business
administration, management and finance, law, mechanical and
production engineering, economic engineering, civil engineering,
among others
General Shareholders’ Meetings
GRI 102-22
The Ordinary General Meeting (AGO) is held
annually until April, while Extraordinary General
Meetings (AGEs) are held whenever the Board
of Directors deems it convenient or in situations
provided for by law. The objective is to promote
decision-making by shareholders with the right to
vote on strategy and general business orientation.
The understanding of the matters proposed at
the General Meetings is supported by the “Manual
for Participation in Eletrobras Shareholders’
Meetings,” available on our website.
In 2019, an AGO and two AGEs were held - the
174th and the 175th. The first dealt with the new
term for the transfer of control of the distributor
Amazonas D and other measures. The second,
on the other hand, approved the authorization
for Eletrobras’ capital increase by private
subscription. In both editions, the company,
although there is no legal obligation, allowed
remote voting, which provided relevant quorums,
of 76.53% and 59.94%, respectively.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Board of Directors and Advisory Committees
GRI 102-22
The Board of Directors (CA) is Eletrobras’ main governance body, charged
with strategic direction and the fulfillment of the company’s purpose, vision
and values. The body actively participates in the preparation of the strategic
planning and the Business and Management Master Plan (PDNG) and has
the task of protecting and valuing the company, optimizing the long-term
return on investment and seeking balance between the wishes of the
various stakeholders.
In 2019, the Board was comprised by 11 members. The directors act in
accordance with the company’s Bylaws and meet the requirements required
by Laws No. 6.404/1976 and No. 13.303/2016, by Decree No. 8.945/2016
and all legal and applicable criteria by regulatory bodies. The nomination
for participation in the body follows the Eletrobras Companies Nominations
Policy. The exception is the employee representative member, elected in
accordance with Law No. 12.353/2010 and Ordinance No. 026/2011 of the
Ministry of Planning, Budget and Management for a two-year term, starting
on the date of the AGO, since the term of all members is unified. Up to three
renewals are permitted by law and by statutory provision. In 2019, there
were no changes in the minimum requirements for election.
capital increase for capitalization of Advances for Future Capital Increase
(AFAC) in the holding;
issuance of bonds by the holding;
debenture issue of subsidiaries;
divestment process in shareholdings of Special Purpose Entities;
merger of Eletrobras Eletrosul by Eletrobras CGTEE;
follow-up and monitoring of supplementary pension plans and health care
plans, with support from the Audit and Statutory Risk Committee (CAE);
convening of the Extraordinary General Meeting and subsidy to approve
the sale of the Amazonas D distributor;
approval of the Shared Services Center (CSC) sharing contract;
filing of Form 20-F with the Securities and Exchange Commission;
The Board of Directors met 27 times during the year, in accordance with the
powers provided for in the company’s Bylaws and the Internal Regulations.
The main subjects discussed were:
approval of an improvement program for advisors and officers
of Eletrobras companies;
review/approval of Eletrobras’ governance documents; and
review of the Internal Regulations of the CAE and election
of an independent member.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Members of the Board of Directors in 2019
GRI 102-22
Mandate1
Participation in meetings (%)
Election
José Guimarães Monforte
April 2019 to April 2021
Wilson Ferreira Jr.
April 2019 to April 2021
Vicente Falconi Campos
April 2019 to April 2021
Mauro Gentile Rodrigues da Cunha
April 2019 to April 2021
Ruy Flaks Schneider
April 2019 to April 2021
Bruno Eustáquio Ferreira Castro de Carvalho
April 2019 to April 2021
Ricardo Brandão Silva
April 2019 to April 2021
Marcelo de Siqueira Freitas
April 2019 to April 2021
Daniel Alves Ferreira
April 2019 to April 2021
Felipe Villela Dias
April 2019 to April 2021
Luiz Eduardo dos Santos Monteiro
April 2019 to April 2021
81
93
81
96
100
94
100
100
94
94
100
Elected by the Union
Independent member
Elected by the Union
Elected by the Union / Independent Member
Elected by the Union / Independent Member
Elected by the Union / Independent Member
Elected by the Union
Elected by the Union
Elected by the Union
Elected by ordinary minority shareholders/
Independent member
Elected by preferred minority shareholders/
Independent member
Elected by employees of the holding company
Notes:
1. The term of office will be extended until the effective investiture of the new members, according to article 26 of the Eletrobras Bylaws.
2. Elvira Baracuhy Cavalcanti Presta submitted a letter of resignation on March 12, 2019, when she took over the Finance Department. José Pais Rangel submitted a letter of resignation on May 28, 2019.
3. Independence criterion of the members of the Council according to criteria of the American law.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Executive Board
GRI 102-22
Advisory committees
The Executive Board is responsible for the
general direction of Eletrobras, acting based
on the guidelines established by the Board
of Directors (CA). Its six members of 2019,
including the CEO, were elected by the Board.
The term of office is unified and does not
exceed two years, with a maximum of three
consecutive renewals allowed.
The Board has the support of commissions and
working groups created on demand for technical
deepening of management issues. The body
meets weekly. In 2019, 57 meetings were held.
Fiscal Council
GRI 102-22
The Fiscal Council represents shareholders
with a supervisory and monitoring role of the
administrators’ actions. Its role is to verify
compliance with the legal and statutory duties
of these executives. In 2019, it was comprised by
four members and their respective alternates,
with terms not exceeding two years, with two
consecutive renewals permitted.
The Fiscal Council meets ordinarily every month
and extraordinarily whenever necessary. In total,
14 meetings were held in 2019.
The Board of Directors has three committees to advise on analysis, monitoring and recommendation on
specific issues in each area: Strategy, Governance and Sustainability Committee; Audit and Risk Committee;
and the Management, People and Eligibility Committee, the last two of which are provided for in Eletrobras’
Bylaws. Each committee has three vacancies for board members, with their duties laid down in their own
internal regulations. See the main topics addressed by these bodies in 2019 in the table below.
There is also the Divestment and Capitalization Operation Follow-up Committee, created in 2017
and currently comprised by four directors who are responsible for monitoring Eletrobras’ internal
activities related to its divestment program and monitoring the activities related to the holding’s
capitalization operation.
In 2019, the committees discussed the following topics, among which we highlight:
participation in the Strategic Planning Process;
monitoring the preparation of the Business and Management Master Plan (PDNG), focusing on
indicators, goals and strategic initiatives;
monitoring of themes related to Corporate Sustainability and the 2030 Agenda;
monitoring of initiatives to improve the company’s corporate governance and sustainability,
including a strategy for participation in the indexes: Dow Jones Sustainability Index (DJSI), Corporate
Sustainability Index (ISE), IG-Sest governance index (IG-Sest), Ibovespa Index (B3);
assistance in preparing the apply or explain form by the Securities and Exchange Commission;
monitoring of major investments in works/projects in progress;
support in strategic and governance guidelines and monitoring the preparation of the project portfolio;
support to the Board of Directors in the performance evaluation process of Eletrobras’ management
bodies; and
Risk management, internal controls, audit, integrity, among others (for more details go to the
CAE Report).
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Leadership selection
GRI 102-24
Law 13.303 (State-Owned Companies Law)
and its regulation (Decree 8.945) brought new
requirements for the selection and qualification
of candidates for positions of administrator and
fiscal councilor for state-owned companies,
which is why we have improved our compliance
and referral competency analysis processes,
in addition to promoting initiatives for the
development of approved executives. In this
activity, we also comply with the company’s
bylaws and other normative documents
of the company.
All nominations for the positions of directors
and officers are analyzed by the areas of
integrity and governance through consultation
of the database of sanctions applied by
the Public Ethics Committee, the websites
of regulatory agents and the ombudsman
offices of the Eletrobras companies. It is also
deliberated by the Management, People and
Eligibility Committee, which also promotes
and monitors the adoption of good corporate
governance practices regarding remuneration
and succession for the entire Eletrobras
system, as well as monitors the effectiveness
of its processes, proposing updates and
improvements when needed.
The appointment of the members of the
Board of Directors Support Committees is
defined after the Annual General Meeting.
The improvements recently implemented
in the process of appointing managers and
directors culminated in the Policy for the
Appointment of Representatives in Subsidiaries,
Affiliates, Foundations and Associations of
Eletrobras companies.
Leadership development
GRI 102-27
We execute the Improvement Program for
Eletrobras Directors and Officers in a consistent
and continuous manner. The initiative involves
cycles of lectures, annual congresses, classroom
and online courses. In 2019, 4 events of this
type were held, totaling 252 participations and
1,008 hours/class.
Eletrobras’ Board of Directors participated in
several lectures on “Risks, Internal Controls and
Integrity” - also transmitted to the bodies of the
subsidiaries -, “Regulatory Law in the Electric
Sector”; “Energy Commercialization”; and
“Fiduciary Duties of Loyalty and Diligence in the
Treatment of Relevant Corporate Information
and the Responsibility of Managers” - with
emphasis on the Policy for Disclosure and Use
of Relevant Information and Securities Trading
at Eletrobras Companies. In July, the advisers
also made two technical visits, one to the Angra
2 plant and the other to Cepel.
In person, we promoted four workshops,
based in Brasília, Rio de Janeiro, Recife
and Florianópolis, with the themes “Roles
and Responsibilities of Directors and
Administrators,” “Human Rights,” “Corporate
Governance” and “SPE Management.”
For 2020, we plan to incorporate themes suggested
from the results of the performance reviews.
4. Securities and Exchange Commission (CVM), Federal Audit Court (TCU), Superior Electoral Court (TSE) and State Audit Court (TCE).
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Evaluation
GRI 102-28
Annually, the members of the Board of
Directors, the Fiscal Councils and the Executive
Boards undergo an individual and collective
performance assessment that follows a unique
methodology in all Eletrobras companies. The
results are scored and consolidated in a report,
for later feedback meeting.
Since 2018, this assessment has been carried
out independently by an external consultancy,
which has also led to the inclusion of the holding
company’s Board of Directors’ committees and
our representatives on the deliberative board
of Cepel and SPEs in which Eletrobras or its
subsidiaries have a majority stake.
The assessment procedures were maintained
for the 2019 financial year, including structured
interviews, self-assessments and personalized
assessments for the chairmen of the boards
of directors and chief executive officers. Three
criteria are considered: competencies, results
and attributions of the body.
Hydroelectric complex Paulo Afonso. Eletrobras Chesf / Severino Silva Collection.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Leadership remuneration
GRI 102-35, 102-36, GRI 102-38, 102-398
According to the law, the salaries of the members of the Fiscal and
Administration councils in public companies and federal mixed capital
companies cannot exceed 10% of the average monthly remuneration of
the directors. Board members do not receive additional remuneration
for participation in advisory committees and/or commissions, except for
the members of the Audit Committee, who may receive differentiated
remuneration depending on the workload.
The composition of the annual remuneration of the Executive Board is
approved at the General Shareholders’ Meeting, following the vote of the
Attorney General of the National Treasury (PGFN), which is guided by the
instructions of the State Government’s Coordination and Governance
Secretariat (Sest). The fixed fees for Eletrobras’ president in 2019 were R$
688,530.83 (including the amount received as a member of the Board of
Directors) and for each of the other directors it was R$ 598,350.84.
That same year, the proportion between the increase in the total
remuneration5 of the employee with the highest remuneration and the
average increase in the total remuneration of employees6 was 0.55. The
ratio between the annual remuneration of the employee with the highest
remuneration and the average of the total annual remuneration of
employees was 3.40.7
Summary of the annual amounts paid to the Eletrobras governance bodies
Remuneration (R$)
2019
2018
2017
Board of Directors
597,351.44
588,596.49
661,975.71
Fiscal Council
358,410.82
382,649.66
393,229.11
Executive Board
5,707,520.05
6,948,244.60
8,323,204.63
Statutory Audit
and Risk Committee
1,694,564.52
901,556.04
-
Note: the amounts presented are of total remuneration to the holding company’s governance bodies.
The Annual Variable Remuneration Program (RVA) can add up to 2.5 fees
and is structured based on goals for indicators agreed between the Board
of Directors and the Executive Board of each of the Eletrobras companies.
The program is structured based on goals for results indicators linked
to the Business and Management Master Plan (PDNG) and the Business
Performance Goals Contract (CMDE), in addition to the Leaders Assessment
indicators, Sest Compliance Indicator and Indicator linked to business units
(Project Performance Index), based on meeting deadlines.
5. For the calculation of remuneration, permanent wage types, annual fee and function bonuses were considered.
6. The calculation of the average total annual remuneration considers employees who have received at least seven months (more than 50% of the year) of remuneration in 2019, as a way of minimizing the effect of
possible exceptions in the evaluation of the indicator.
7. The proportion of the increase and the remuneration ratio were calculated using the employee with the highest annual remuneration in 2019, without considering statutory positions (directors and presidents). There
was a change in the format of the report in relation to 2018, using the average of the employees’ remuneration as the denominator of the calculations and not the median. 102-48 (this tag was included in the English
version of this Report, to better represent the GRI Materiality Disclosures Service requisites).
8. The calculations for indicators 102-38 and 102-39 refer to the employees of the holding company.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
One of the indicators of the Variable Remuneration Program (RVA), the Strategic Alignment Index - IAE (CMDE), establishes a firm correlation between the
referred Program and the CMDE, which is periodically agreed between the holding company and its subsidiaries to establish indicators and targets linked
to the Strategic Planning and Business Plans of Eletrobras companies. Through this indicator, the overall performance of CMDE directly interferes in the
calculation of the Variable Remuneration of the Officers. Among the contract indicators reflected in the RVA of the Eletrobras Directors, we highlight the
indicator Price / Asset Value per share, which measures the relationship between the price of Eletrobras’ shares and its asset value, in comparison with
companies of the Electricity Index of B3 (IEE)), thus establishing a comparison of the performance of Eletrobras’ shares with companies in the market.
The payment of the RVA is made in five years - 50% in the first year, 20% in the second year and 10% in the last three years -, the payments from the second
to the fifth years being conditioned to the maintenance of the result (net profit). This rule that links the payment of deferred installments to the maintenance
of the result, in addition to reinforcing the commitment to corporate sustainability, is configured as a type of clawback, since, under certain conditions, it gives
the company the right to revoke part or the total remaining installments of the variable remuneration.
The RVA Program also has a clause to define that in the event of a possible dismissal for improper conduct, the exonerated director will not be entitled to any
portion of the variable remuneration.
Indicators of the RVA Program and Correlation with PDNG 2020-2024
Category
Strategic Guideline of PDNG 2020-2024
Indicator
Corporate (entire company)
Collegiate
Business unit1
(specific for each Board)
Value and Investment;
Commercialization; and
New businesses.
G&T Efficiency; and
Innovation and Digital Transformation.
G&T Expansion; and
New Business.
Governance; and
Management.
Value and Investment;
Commercialization;
G&T Efficiency;
Culture and People;
Management; and
Governance.
Strategic Alignment Index – IAE (CMDE)
% of PDNG investment made
Net Income / Net Worth
Personnel, Material, Services and Other Accounts (PMSO)/ Regulatory PMSO
Alignment Index to SDG (IAO)
Evaluation of the Collegiate Board by the Board of Directors
Sest Compliance Indicator (compliance with regulatory deadlines)
Project Success Index by Board
1. Each of the boards is responsible for one of the strategic projects of the PDNG 2020-2024 and monitors its execution. The goal is reached when the project is carried out on schedule, meeting the strategic goals.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
BUSINESS ETHICS AND INTEGRITY
Values
GRI 102-16 | SDG 16
Ethics and transparency;
Focus on results;
Valuing and commitment of people;
Entrepreneurship and innovation; and
Sustainability.
Commitment to business integrity
GRI 103-1, 103-2, 103-3, 102-16 | SDG 16
The improvement of corporate governance and integrity is one of the guidelines of our strategic
planning, which highlights the importance of the topic for the company. We are committed to ethics
and the fight against corruption and fraud, in order to mitigate risks and correct nonconformities,
thus guaranteeing the sustainability of Eletrobras companies and the confidence of our shareholders
and society.
Annually, the Eletrobras Companies Ethics Committees participate in the National Forum for Ethics
Management in State-owned Companies, which promotes study groups, the achievement of
certifications and seals and holds a seminar, open to all employees of the participating companies,
renowned academics, government officials and the general public.
In addition, for the past four years, we have been working continuously to intensify and advance our
management of business ethics and integrity, through the Compliance Department, responsible for the
Eletrobras Companies Integrity Program and a solid structure of institutional and regulatory instruments.
We are committed to ethics and the
fight against corruption and fraud,
in order to mitigate risks and correct
nonconformities, thus guaranteeing the
sustainability of Eletrobras companies
and the confidence of our shareholders
and society.
These instruments establish principles, guidelines,
standards and commitments of conduct for
companies and their employees in their relations
with our stakeholders, in addition to identifying,
remedying and treating cases of transgression.
The main ones are Code of Ethical Conduct and
Integrity, the Anti-Corruption Policy of Eletrobras
Companies and the Eletrobras Companies
Conflicts of Interest Management Policy. Annually,
the Internal Audit verifies the adherence and
compliance with the Integrity Program.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Conflict of interests
GRI 103-2, 102-25
It is the duty of the board of directors to monitor and manage potential conflicts of interest of
executives, Board members and shareholders, in order to avoid misuse of the organization’s assets
and, especially, abuses in transactions between related parties. According to Eletrobras’ Bylaws, it is
forbidden for the administrator to deliberate on matters that conflict with his interests or concerning
third parties under his influence, pursuant to art. 156 of Law 6.404. In this case, the executive must
record the divergence in the minutes and exempt himself from the discussion. Eletrobras also
addresses the issue in its Eletrobras Companies Conflicts of Interest Management Policy, in line with
the Bylaws and applicable legislation.
In order to avoid possible conflicts and the use of confidential and strategic information, the president
and the directors cannot exercise management, administration or consultancy functions in private
economy companies, utilities or private law offices connected in any way to the electricity sector. The
exception is for subsidiaries, controlled companies, special purpose companies and concessionary
companies under the control of the States in which Eletrobras has a shareholding, in which they may
hold positions on the Board of Directors and Fiscal Council.
The advisor elected by the employees does not participate in discussions and deliberations on
matters involving union relations, remuneration, benefits and advantages, including supplementary
pension and assistance matters. The directors and presidents must submit the Confidential
Information Statement (DCI) to the Public Ethics Committee, in which their assets are listed, inform of
shareholdings that may constitute a conflict of interest and describe the measures taken in relation to
these shares.
To receive formal inquiries from employees regarding conflicts of interest, we have the email
conflitodeinteresses@eletrobras.com. In addition, the Federal Comptroller General (CGU) has its own
electronic system, which can be used by the entire public administration, including Eletrobras - the
Electronic System for the Prevention of Conflict of Interest (SeCI).
For the transactions, we follow the Eletrobras Companies Related Party Transactions Policy, whose
guidelines protect the interests of the company and its shareholders and regulate the transfer of the
information necessary to comply with the applicable capital market legislation, in Brazil and abroad.
High voltage laboratory. Cepel collection.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Integrity program
GRI 103-1, 103-2, 103-3, 102-16 | SDG 16
With the Eletrobras Companies’ Integrity
(Compliance) Program - Eletrobras 5 Dimensions
we develop continuous actions to comply
with the laws and regulations established
for our activities, as well as to improve the
process of preventing, detecting and treating
nonconformities.
evaluation of governance members (directors
and board members): improvement of the
background check tool; and greater coverage
of the opinion issued by the integrity area,
including also the analysis of compliance with
the requirements for the designation of Law
13.303/16; and
In 2019, a series of improvements were made to
the integrity verification processes:
supplier assessment: automation of the
application of the due diligence form;
improvement of the background check tool;
improvements in integrity opinions, including
analysis of the statuses of any existing
lawsuits of the evaluated persons and
analysis in relation to possible conflicts of
interest, as well as the inclusion of additional
statements of the evaluated persons;
evaluation of sponsorships, donations,
agreements and social actions: conducting an
integrity analysis of the participants in the
Electricity Sector Sponsorship Programs,
Cultural Sponsorship, Sports Sponsorship and
Social Projects Notice;
integrity assessment in divestment processes:
carrying out, during the process of qualifying
bidders, verification of the final beneficiary
and the existence of fraud and corruption
processes; and, at the time of the Firm
Economic Proposal, of complete evaluation
with the application of the due diligence form
and the background check.
Regarding the assessment of the risk of fraud
and corruption, we work on two fronts: in
the treatment of the risks prioritized in each
Eletrobras company through recommendations
for mitigation actions and monitoring of
execution; and in the review of the methodology
for prioritizing and treating the risk of fraud
and corruption, adjusting and grouping the risk
factors into 11 main factors, and relating them to
the macroprocesses/processes of the Eletrobras
companies in which they can materialize. Based
on this leveling, the macroprocesses to be
prioritized for the treatment of these risk factors
were defined.
We launched, to communicate and train the
internal public - including senior management
- the Eletrobras Companies Online Ethics and
Integrity Culture Course, mandatory for all, in
which the anti-corruption legislation is treated,
as well as the guidelines and procedures of
the Integrity (Compliance) Program related to
the theme.
In the week of December 9th - the International
Day to Combat Corruption -, we held the 2019
edition of the “Eletrobras Week of Integrity and
Ethical Culture,” which had something new in
relation to previous events: the Compliance
Game, a game in a team developed for
Eletrobras, with puzzles and riddles on the
theme. In the same period, the Eletrobras
companies’ suppliers were sensitized, reinforcing
the concepts and guidelines of the Integrity
Program and specifying the rules applicable to
this audience.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
GRI 103-2, 103-3
The Integrity Program is managed by the Eletrobras Integrity Department, subordinate to the
Compliance Department, which coordinates the Compliance Directive Commission (CDC), a group
formed by representatives of the integrity areas of Eletrobras companies that works to disseminate
the initiative and compliance with policies and other corporate regulations regarding ethics and
integrity. Quarterly, the area reports activities to the Audit and Risks Committee of the Eletrobras
companies, informing the actions carried out, in progress and planned, receiving strategic guidelines
and recommendations in return.
Anti-corruption communication and training | GRI 205-2
Corporate
governance
bodies
Management
level
employees
Employees
in positions
with higher
education
Employees
in positions
without higher
education
Business
partners (SPE
partners)
126
1,247
4,897
8,225
118
1,238
4,723
7,870
79
20
94%
99%
96%
96%
25%
107
1,035
3,841
6,334
85%
83%
78%
77%
Total (members / employees
/ business partners)
Total to which the anti-
corruption policies and
procedures adopted
by Eletrobras were
communicated
Percentage to which the
anti-corruption policies
and procedures adopted
by Eletrobras were
communicated
Total of those who received
anti-corruption training
Percentage of those
who received anti-
corruption training
Notes:
1. Only members of the corporate governance bodies and employees are submitted to anti-corruption training by Eletrobras.
2. The results of the Eletrobras Companies Online Course on Integrity and Ethical Culture were consolidated by January 31, 2020.
Fighting corruption
GRI 205-3
In 2019, a case of corruption was
identified in the Eletrobras System, in
Furnas, related to fraudulent contracting
and contractual management, in
disagreement with current legislation
and the company’s internal regulations.
The executives involved are no longer
part of the company’s staff and are
the target of Administrative Improbity
Process No. 0177495-33.2017.8.19.0001,
in which Furnas is working alongside
the Public Prosecutor to investigate facts
and responsibilities.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Compliance ISOs
Eletrobras’ integrity program also includes,
in its format, the provisions of ISO 37001
and ISO 19600, which are, respectively,
anti-bribery and compliance management
systems. Eletrobras intends, in the future,
to obtain certification in the first ISO - the
19600 is not certifiable.
The five dimensions Eletrobras’ Integrity Program
GRI 103-2, 103-3
COMMUNICATION AND TRAINING
Dissemination of the Eletrobras
five dimensions program
through communication
and training actions adapted to
each audience
STRUCTURE AND IMPLEMENTATION OF
INTEGRITY PROGRAM POLICIES AND PROCEDURES
It provides that the creation and implementation
of the base for disseminating knowledge related
to the culture of ethics and integrity in Eletrobras
companies must be developed, implemented
and followed by policies and regulations
and address the theme in the daily lives of
companies, as applicable
PROGRAM MONITORING, REMEDIATION MEASURE
AND APPLICATION OF PENALTIES
Continuous monitoring of the program,
through internal audit, controls
implemented in ProERP (SAP) and tests
of SOX controls
5
4
EXISTENCE
Q
U
A
LI
T
Y
DEVELOPMENT OF THE INTEGRITY
PROGRAM MANAGEMENT ENVIRONMENT
It addresses the support to
promoting a culture of ethics
and integrity demonstrated by
the governance bodies through
actions that highlight this position
3
EFFECTIVENESS
1
2
PERIODICAL ANALYSIS OF RISKS
It consists in the identification,
assessment, treatment and monitoring
of vulnerabilities and risks of fraud and
corruption in Eletrobras companies
Click for more information about the
Eletrobras Companies Integrity Program
90
CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Reporting channel and integrity management
GRI 102-17, 102-21, 102-33, 102-34, 103-2, 103-3 | SDG 16
Channel that can be used by anyone to report violations or suspected
violations of our Code of Ethical Conduct and Integrity, our Integrity Program
and anti-corruption laws. We ensure the anonymity and confidentiality of
complaints, in addition to non-retaliation against the complainant. The
channel is available in Portuguese, English and Spanish, every day, 24 hours
a day and the complainant can follow the progress of his report through an
individual protocol and password, which gives transparency to the process
and guarantees the attendance and verification of all contacts received. There
is also the e-mail eticaevoce@eletrobras.com, which receives inquiries about
the mechanisms of ethics and other pertinent information from Eletrobras.
Additionally, all Eletrobras companies have ombudsmen.
The integrity management and complaint handling and investigation
process is guided by internal standardization documents, procedures
and unified bodies. The Consequences Policy establishes corporate
commitments to fight corruption, anti-competitive practices, conflicts of
interest and other infractions, 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 internal and legal rules. The Fiscal Council and the
Statutory Audit Committee receive information on complaints and other
types of statements that may generate risks or opportunities for process
improvement on a monthly basis.
In 2019, this process was improved with the approval of a single regulation
for Eletrobras companies, as well as the creation of a specific area for
coordinating the investigation of complaints and violations, subordinated
to Internal Audit. After structuring the process, in 2020, the area became
linked to the Eletrobras Board of Directors.
408
91
valid complaints received by the Reporting
Channel until the end of December 2019
complaints completed, equivalent to
22% of complaints received in 20199
Demonstrations received by Eletrobras companies | GRI 102-34
Compliments
Suggestions
Reports
Requests
Complaints
Total1
2018
55
100
504
2,045
7,723
10,427
2019
59
181
408
1,735
2,159
4,542
Notes:
1. The significant variation in the number of statements and reports is due to the fact that in 2019
Eletrobras no longer had the distribution business, therefore, the statements and complaints of the
distributors are no longer accounted for.
2. The values in the table refer to the contents received by the Ombudsman Systems and the Reporting
Channel.
3. The amounts do not include the total number of complaints related to Itaipu, which has its own
Ombudsman system.
9. The total number of complaint protocols resolved in 2019 was 282, including the 91 complaints
received and resolved that same year.
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CORPORATE GOVERNANCE AND ETHICS ANNUAL REPORT ELETROBRAS 2019 CAPITAL
PERFORMANCE
92
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
FINANCIAL CAPITAL
GRI 103-1, 103-2, 103-3 | SDG 7, SDG 9
The Board of Directors’ main guideline for
financial management is to reduce net debt.
In other words, our action in this regard aims
to lengthen the debt and reduce costs. The
specific indicator to determine our success is the
recurring Net Debt/Ebitda, which in 2019 was
1.6. More information on our performance in
2019 can be found on page 94.
In terms of processes, we are reviewing and
improving the accounting closing, as we still
have material weakness in this activity. In
2019, we changed the format, making regular
monitoring with all the accounting teams of
Eletrobras companies, whose integration was
facilitated by the SAP system, which benefits
data consolidation. We are still in the process of
training and improving the use of the system,
but we know that its full functioning and full
standardization of information will bring even
more benefits to financial management.
In 2020, we expect to continue to have a leverage
level under control and further reduce costs
with the zero-base budget. Our plan is to save
R$ 300 billion. We will also work to ensure that
there is no short-term pressure on the debt. We
must finalize the debenture issue of Eletrobras
Eletronorte and Eletrobras Amazonas GT - the
first is incorporating the second -, which, with
this move, will be able to pay the debts with
Eletrobras. We will continue to improve controls,
accounting closing and greater and better use of
SAP, among other relevant projects.
Along this path, we consider it essential to
maintain a close and healthy relationship with
stakeholders, which we count on to comply with
our strategy. We must increase our participation
or promotion of events for this audience,
especially due to the possibility of privatization,
which, if approved, should occur within the best
possible bases.
Another indicator that Eletrobras has been
improving is the minimum cash. Currently, this
management follows some informal rules, which
we are transforming into a policy, for which we
aim to achieve formal approval.
To give an idea of the reflection of its
management efforts and the relevance that
Eletrobras has been acquiring for the market, our
company was worth, at the height of the crisis,
approximately R$ 9 billion. In 2019, this amount
We will work to ensure that there is no
short-term pressure on the debt. We
must finalize the debenture issue of
Eletrobras Eletronorte and Eletrobras
Amazonas GT - the first is incorporating
the second -, which, with this move, will
be able to pay the debts with Eletrobras.
reached more than R$ 50 billion (excluding
market fluctuations). We credit this achievement
for the credibility that the company has been
seeking in terms of financial and corporate
governance and compliance
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INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Financial results
GRI 102-7, 103-3 | SDG 9, SDG 16
In 2019, we presented a consolidated net profit of R$ 10,744 million, 20%
lower than the R$ 13,348 million obtained in 2018. The 2019 profit is
comprised of Net Income from continuing operations - R$ 7,459 million
- and Net Income - R$ 3,285 million, regarding discontinued operations
(distribution), highlighting the privatization of distributor Amazonas Energia,
which is no longer consolidated by Eletrobras.
Net Operating Revenue went from R$ 25,772 million in 2018 to R$ 27,726
million in 2019, with emphasis on the entry into operation of the UTE
Mauá 3 of Eletrobras Amazonas GT and the receipt of Generation Asset
Management (GAG) Improvement, regarding generation concessions
renewed by Law 12.783/2013. Ebtida International Financial Reporting
Standards (IFRS), in the amount of R$ 19,007 million in 2018, dropped to
R$ 10,257 million in 2019, impacted by the reversal of impairment and the
onerous contract of Angra 3 in the amount of R$ 7,243 million against a
provision, for the same work, of R$ 462 million in the year. Recurrent Ebtida
grew 5.3%: R$ 12,540 million in 2018 and R$ 13,210 million in 2019, and the
recurring Net Debt/Ebitda indicator was 1.6, demonstrating the success of
the company’s deleveraging measures.
As a result of new analysis on comparative balances, we decided to perform
reclassifications in our income statements, cash flow and added value, as
provided for in CPC 23 - Accounting Policies, Changes in Estimates and Error
Correction, to provide reliable and more relevant information.
For more details on Eletrobras’ economic and financial performance, see the
accountability reports.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Operating income
GRI 102-7
GROSS OPERATING
REVENUE TOTALED
R$ 33.69 BILLION
in 2019
9%
more than the R$ 30.88
billion recorded in 2018.
GENERATION OPERATING
REVENUE INCREASED
16% compared to
2018, totaling
R$ 23.37 BILLION
in 2019
Transmission1 Operating Revenue and Other revenues decreased by 3%
and 12%, respectively, compared to the previous year, totaling R$ 9,544
million and R$ 769 million.
Gross revenue by business
In R$ million
2017
22,369
10,300
1,041
2018
20,139
9,868
869
2019
23,374
9,544
769
Generation
Transmission
Others revenue
Note: 1. 2018 Transmission Operating Revenue was revised during the audit process of financial
and accounting data for the 2019 cycle. In the 2018 Annual Report, the data reported was:
R$ 9,071 million. GRI 102-48
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Operating costs and expenses
Total operating costs, considering energy
purchased for resale, charges for use of the
electricity grid, purchase of fuel for electricity
generation and construction costs, totaled
R$ 6.78 billion in 2019, 22.4% more than in 2018.
Mainly the following increased:
costs with energy purchased for resale - 38.7% -, due to the incorporation of energy purchase
contracts from independent producers by Eletrobras Amazonas GT (+ R$ 571 million) and price
adjustment as defined in the contracts and an increase in the amount contracted for R$ 158 million
in Furnas; and
the costs of purchasing fuel for power generation due to the assumption of the gas contract entered
into with Petrobras by Eletrobras Amazonas GT (+ R$ 983 million), as a result of the deverticalisation
and privatization of Amazonas Distribuidora.
With respect to Personnel, Materials, Services and Other expenses (PMSO), the variations shown in the
following table were mainly due to:
Personnel: the increase is mainly due to the costs with the Consensual Dismissal Plan (PDC), which
reflects partial effects due to the termination dates and temporary obligations with the health plan.
PDC expenses (indemnity and health plan) were R$ 681 million in 2019 and R$ 379 million in 2018.
In addition, the reversals of the Profit Sharing (PLR) provision of 2018 were R$ 154 million higher
than the reversals of PLR in 2019.
Material: sum of R$ 22 million in expenses by Eletrobras CGTEE due to increased consumption of
lime and other materials due to problems with material in 2019.
Services: increase of R$ 32 million in expenses of the parent company with contracting services
related to the issuance of debt securities and consultancies related to the SAP ERP project and
increase of R$ 23 million in expenses of Eletrobras Amazonas GT with maintenance of the Mauá 3
thermoelectric plant. These amounts were offset by the R$ 37 million reduction in Eletrobras
Furnas’ service expenses due to the decrease in outsourced services, the partial effects of which
occurred only in the last quarter of 2019, in addition to the R$ 44 million reduction in Eletrobras
Eletronuclear resulting from one stop less of the Plant.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Personnel, Materials, Services and Other Expenses
(In R$ million)
Partner participation
Personnel
Materials
Services
Other Expenses
Total PMSO
2019
-5,828
-280
-2,171
-1,572
-9,850
2018
-5,385
-262
-2,157
-1,304
-9,108
%
8.2
6.9
0.6
20.6
8.1
Our ownership interest was 17.6% lower compared to 2018 due to the
reduction in the results of affiliated companies in 2019, with emphasis
on CTEEP due to adjustment in RBSE, according to Eletrobras accounting
practices (-R$ 808 million). This reduction was partially offset by the
increase in the equivalence of ESBR (+ R$ 430 million) and SPE Madeira
(+ R$ 341 million).
Shareholdings (in R$ million)
Note: Other Expenses include donations and contributions, and others.
2019
2018
%
1,141
1,385
-17.6%
Management PMSO and PMSO/ROL
In R$ million
4
2
9
0.42
2
6
3
9
,
3
7
4
1
,
4
7
4
0.34
0.30
5
3
6
8
,
7
7
3
,
8
2017
2018
2019
Recurring PMSO
Non-recurring effects
Recurring PMSO/Recurring ROL
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Financial result
Our Net Financial Result went from a Net Expense of R$ 1.37 billion in 2018 to a Net Expense of R$ 2.08 billion in 2019. This variation is mainly due to:
Financial Income: adjustment to fair value, with an expense record of
Financial Expenses: passive exchange rate variations were recorded in
R$ 921 million in 2018 and a net income of R$ 368 million in 2019, with
a positive increase of 140%, resulting from the remuneration at fair
value of the RBSE asset, considering the update of the “Ke”
remuneration installment as of July 2017 by the WACC regulating the
transmission and IPCA until the measurement date; change of the
discount rate close to the National Treasury Notes Series B (NTN-B)
from 4.6% in December 2018 to a rate close to the regulatory
remuneration of 6.4%; and beginning of receipt, in June 2021, by the
term of Ordinance 120, until June 2025. These amounts were partially
offset by the 67% drop in interest income, commissions and fees due
mainly to the accounting of the agreement with Eletropaulo in the
amount of R$ 1.06 billion in 2018; and active exchange rate variations
of R$ 2.66 billion in 2019 compared to R$ 4.15 billion in 2018. This
variation was partially offset by the passive exchange variation,
resulting in a positive net exchange variation of R$ 249.00 million.
2018 and 2019, respectively of R$ 4.36 billion and R$ 2.63 billion, which
was offset by the active exchange rate variation. In addition, these
variations were partially offset by debt charges, which increased by
R$ 567 million, mainly due to charges for new debentures issued by the
holding company and the disqualification of the Angra 3 Nuclear Power
Plant to capitalize interest due to the non-resumption of this work at
the subsidiary Eletrobras Eletronuclear.
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Income tax and social contribution
Our provision for Income Tax (IR) and Social Contribution on Net Income went from an expense of R$ 2.48 billion in 2018 to R$ 1.09 billion in 2019.
Statement of Income for the Year (DRE)
DRE (in R$ million)
Generation Revenue
Transmission Revenue
Other Revenue
Gross Revenue
Revenue Deductions
Net Operating Revenue
Operating Costs
Personnel, Material, Services and Others (PMSO)
Depreciation and Amortization
Operating Provisions
Operating Income before Financial Income
Shareholdings
Other Revenues and Expenses
Financial Result
Income before Income Tax and Social Contribution
Income tax and Social Contribution
Net Income from Continuing Operations
Net Profit (Loss) from Taxes on Discontinued Operations
Net income for the year
2019
23,374
9,544
769
33,687
-5,961
27,726
-6,778
-9,850
-1,807
-2,006
7,284
1,141
25
-2,081
6,369
1,090
7,459
3,285
10,744
2018
20,139
9,868
869
30,876
-5,104
25,772
-5,537
-9,108
-1,702
6,495
15,920
1,385
0
-1,375
15,931
-2,484
13,447
-99
13,348
Variation
16%
-3%
-12%
9%
17%
8%
22%
8%
6%
-131%
-54%
-18%
-
51%
-60%
-144%
-45%
3,411%
-20%
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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Ebitda
In 2019, we recorded an Ebitda of R$ 10.26 billion, 46% less than the
adjusted Ebitda of 2018, of R$ 19.01 billion. Recurrent Ebtida grew 5.3%,
jumping from R$ 12,540 million in 2018 to R$ 13,210 million in 2019.
Added Value Distribution | GRI 201-1 | SDG 8
In R$ million
Consolidated Indebtedness
The variation in the 2019 debt compared to 2018 was positively impacted
by the Eletrobras debentures in the amount of R$ 5.00 billion, the proceeds
of which were used to settle the bonds maturing in 2019 and partial
amortization of distributors’ debts assumed with Petrobras.
Gross and net debt in 2019
(in R$ billion)
Gross Debt
(-) RGR onlending to CCEE1,2
Recurring Gross Debt
(-) (Cash and Cash Equivalents + Marketable Securities)
(-) Financing Receivable
(+) RGR receivable RGR onlending to CCEE
(-) Net balance of Eletrobras Itaipu's financial assets
Net Debt
12/31/2019
47.90
1.10
46.80
10.76
14.28
1.10
1.82
21.04
5
5
8
3
1
,
8
4
3
,
3
1
4
4
7
0
1
,
2
7
6
9
,
8
3
4
9
,
0
2
5
,
6
7
9
3
,
5
8
9
6
3
,
TAXES
TAXES
THIRD
PARTIES
SHAREHOLDERS
12/31/2018
12/31/2019
1. Global Reversion Reserve Account (RGR) and Electric Energy Trading Chamber (CCEE).
2. Proforma, debt and receivables related to financing granted with RGR resources, due by
companies outside the Eletrobras System, were excluded, since Eletrobras is only a debt manager.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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Capital market
GRI 102-10
Eletrobras trades common and preferred shares in B3 S.A. - Brasil, Bolsa, Balcão under the code “ELET3” and common shares and class “B” and class “A”
preferred shares, under the tickers “ELET6” and “ELET5,” respectively. At the New York Stock Exchange (NYSE), shares are traded through the ADR Level
II Program, under the tickers “EBR” and “EBR-B”. On the Madrid Stock Exchange (Latibex), trading is carried out by the Latibex Program under the tickers
“XELTO” and “XELTB”.
In 2019, the company’s shares positively reflected the result of the PDNG 2019-2023 with the privatization of distribution companies, the divestment in SPEs
and affiliates and the prospect of democratizing Eletrobras’ capital.
Level 1 Program B3 S.A. - Brasil, bolsa, balcão (elet3 e elet6)
Price and volume
Closing quote on 12/31/2019
Maximum in 2019
Average in 2019
Minimum in 2019
Variation in 2019
Average daily trading volume in 2019 (million shares)
Average daily trading volume in 2019 (million)
Market value on 12/31/3019
(R$)
ELET3 B3 (ON Shares)
(R$)
ELET6 B3 (ON Shares)
(pts.)
IBOV B3 (Index)
(pts.)
IEE B3 (Index)
37.80
46.83
36.67
29.00
61.4%
4.1
151.3
38.24
47.27
38.17
32.14
47.0%
2.5
93.8
115645
117203
100660
89993
76627
76627
62557
50699
30.2%
51.1%
-
-
-
-
R$ 51,246 million
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On December 31, 2019, Eletrobras’ share capital totaled R $ 31,305 million, represented by 1,352,634,100 shares, of which 1,087,050,297 are common
shares and 265,436,883 are preferred shares. In relation to 2018, there was no material change in the composition of the company’s share capital, including:
increase, split, reverse split, bonus or reduction in share capital.
In November 2019, the capital increase was approved by the 175th Extraordinary General Meeting (AGE), with the issuance of new class “B” common
and preferred shares, in the minimum amount of R$ 4,054,016,419.37, subscribed and paid up by controlling shareholder (Federal Union) through the
capitalization of credits held against the company arising from Advances for Future Capital Increase (AFAC). The 177th AGE, held in February 2020, approved
the capital increase, in the total amount of R$ 7,751,940,082.78, with the issuance of 201,792,299 new common shares and 14,504,511 new class “B”
preferred shares. Accordingly, as of February 2020, Eletrobras’ share capital is R$ 39,057,271,546.52, divided into 1,288,842,596 common shares, 146,920
class “A” preferred shares and 279,941,394 class “B” preferred shares.
Spillway of the Itaipu Hydroelectric Plant. Itaipu Binacional / Caio Coronel collection.
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MANUFACTURED CAPITAL
SDG 9
Operation and power supply
GRI 102-2, 103-1, 103-2, 103-3 | SDG 3, SDG 7, SDG 8, SDG 11, SDG 12, SDG 16
In 2019, we surpassed the mark of 50 thousand
MW of installed capacity in generation projects,
which represents 30% of the 172,259 MW
installed in Brazil. This milestone reinforces the
contribution of Eletrobras companies so that
Brazil has one of the most renewable energy
sources with the lowest emission of greenhouse
gases in the world.
Installed capacity continues to rise with each
acquisition or start-up. A recent example is
the Belo Monte hydroelectric plant, a project
that has a 50% stake in Eletrobras, which
was inaugurated on November 27, 2019 in a
ceremony held in Vitória do Xingu (PA), marked
by the start of the 18th generating unit of
the plant’s main powerhouse, and had the
participation of the president of Eletrobras,
Wilson Ferreira Junior, and president
Jair Bolsonaro.
Our operations take place within standards
of excellence of availability, guaranteeing an
efficient and constant supply of energy. The
generation facilities are designed for self-
restoration, that is, they must be able to move
from a complete stop condition to an operational
condition, regardless of an external source in the
supply of their auxiliary services. Additionally,
in the event of a failure in self-recovery, the
plant has at least a second - or even third -
independent source, which varies according
to the strategic importance of the plant for
the restoration of the National Interconnected
System (SIN).
For SIN substations, auxiliary services are
designed for operational continuity in the event
of simple occurrences in the transmission lines.
Additionally, in the event of a failure in the supply
of auxiliary services, the substation has, at least,
a second independent power supply, which also
varies according to the relevance to the SIN.
Additionally, in the event of a failure
in the supply of auxiliary services,
the substation has, at least, a second
independent power supply,
which also varies according to the
relevance to the SIN.
After an event in which there is disconnection of
loads from consumers, the reclosing is controlled
by the National Electric System Operator (ONS).
ONS determines a specific standard for restoring
energy as a priority (ONS Network 10.22).
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Generation
GRI 102-2, 102-6, 102-10, 103-2, 103-3
We operate in generation in the Regulated Contracting Environments
(including the quota regime) and Free Contracting, as well as in the Short-
Term Market. Of Eletrobras’ total projects, 60.9% are wholly owned, 23.6%
carried out through Special Purpose Entities (SPEs) and 15.5% in shared
ownership, including half of Itaipu Binacional’s capacity (7,000 MW).
Approximately 96% of Eletrobras’ installed capacity comes from sources
with low greenhouse gas (GHG) emissions. As of December 31, 2019,
Eletrobras’ total installed capacity in projects of this type was 49,273 MW.
In 2019, the start-up of six generating units at the Belo Monte
Hydroelectric Power Plant (HPP) - which became the largest 100%
Brazilian hydro plant - and two generating units at HPP Sinop stand out.
The Acauã, Angical 2, Ararapá and Teiú 2 wind farms in the Pindaí I Wind
Complex; Coqueirinho 2 and Papagaio, from the Pindaí II Wind Complex;
and Tamanduá Mirim 2, from the Pindaí III Wind Complex have also started
to operate.
On the other hand, Eletronorte’s Santana and Serra do Navio
Thermoelectric Plants; Flores and Iranduba, from Eletrobras Amazonas
GT were deactivated; and 405.90 MW for the sale of the thermal plants of
Distribuidora Amazonas Energia, which had their privatization completed
in 2019, were disregarded.
One of the measures foreseen in the PDNG 2019-2023 to reduce financial
leverage was to reduce the number of Special Purpose Entities (SPEs)
with Eletrobras’ participation. In September 2018, we sold 26 SPEs - 16
of which from generation and 10 from transmission - of the 71 put up for
sale at auction. R$ 1.3 billion was collected. Thirty-nine of the remaining
SPEs are being traded in a Competitive Procedure started on July 30, 2019.
Eletrobras companies ended the year with a partnership in 136 SPEs,
134 in Brazil and 2 abroad. The divestment process in SPEs reduced the
installed capacity by 230 MW in the Eletrobras System companies in 201.
Evolution of installed capacity | GRI EU1
(In MW)
6
9
7
9
3
,
7
1
6
9
3
,
8
3
3
,
8
4
8
1
0
1
,
5
9
0
9
3
,
8
4
0
2
1
,
2017
2018
2019
Corporate
SPEs
Note: corporate value includes ventures with shared ownership.
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Net generation in their own plants and shared ownership, Itaipu Binacional and special purpose
companies (in GWh) | GRI EU2
Net generation by source
Solar
Wind
Hydro
Natural gas
Uranium
Coal
Oil
Total
2017
1
3,594
155,129
3,674
15,741
1,589
2,419
182,147
2018
1
3,874
154,193
5,516
15,675
1,490
2,497
183,245
2019
1
3,402
156,739
6,585
16,127
1,668
503
185,025
Note:
1. The total energy generated in 2019 includes the projects that they generated over the period, but that at the end of the year were no
longer owned by Eletrobras and did not have their installed capacity considered.
2. From a review of the 2018 calculations, an adjustment was identified in the total hydro source value. GRI 102-48
Evolution of net energy generated by renewable sources
and of low GHG emission | GRI EU2
95.8%
95.4%
95.3%
94.8%
93.7%
Sento Sé Wind Complex. Eletrobras Chesf / Severino Silva Collection.
2015
2016
2017
2018
2019
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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Average availability factor by energy source | GRI EU30
(%)
Coal
Wind
Gas
Hydro
Oil
Solar
Uranium
49.80
68.10
92.77
91.00
85.38
73.50
56.10
94.29
96.81
96.00
96.48
96.74
95.30
0.00
99.32
99.30
99.27
98.90
92.80
90.36
92.00
2019
2018
2017
Note: availability values include Corporate plants (corporate renovated, non-renovated and shared ownership) and Special
Purpose Entities (SPEs). The 2019 report does not include the availability of oil sources.
Annual average efficiency of generation
by thermal power plants by source | GRI EU11
(%)
Uranium
Coal
Natural
Gas
Oil
37.7
35.60
35.30
34.96
31.37
30.50
44.30
37.80
35.90
49.90
2019
2018
2017
Notes:
1. It only considers the average efficiency of Corporate plants,
not considering Special Purpose Entities (SPEs). The 2019
report, as well as the 2018 report, does not include the
efficiency* of oil sources.
2. The value reported in 2018 for the Coal source was 37%, after
an internal review the value was updated. GRI 102-48
* The term “efficiency” is used in the English version of
this Report, substituting the term “availability” in its
Portuguese version.
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Transmission
GRI 102-2, 102-6, 103-2, 103-3, EU4
As of December 31, 2019, the transmission
lines network of Eletrobras companies
reached a total of 71,153.60 kilometers,
of which 8,318.35 kilometers were not
renovated10; 55,819.83 corporate kilometers
under Operation & Maintenance Regime,
renewed by Law No. 12.783/13; and 7,015.42
kilometers corresponding to the proportion of
their shareholdings in projects carried out by
Eletrobras companies through Special Purpose
Entities. Considering only lines with a voltage
level equal to or greater than 230 kV, that is,
voltages of ±800, 750, ±600, 525/500, 345 and
230 kV, Eletrobras is responsible for 64,893.64
kilometers, which represents 45.25%11 of the
total transmission lines in Brazil at these voltages.
Exchange of transmission towers. Eletrobras CGT Eletrosul Collection.
In 2019, we prepared methodologies for
entering into new investment and risk contracts
associated with transmission undertakings to
avoid assuming those with a high probability of
low profitability.
In the scope of the operation and maintenance
of our system, we work together with the
Brazilian Association of Infrastructure and Basic
Industries (ABDIB) and the Brazilian Association
of Electricity Transmission Companies (Abrate)
for the approval of Aneel Normative Resolution
no. 853/2019, which will allow, starting in 2020,
for a reduction in the Variable Portion of the
Eletrobras DC facilities. The expectation is to
obtain annual savings of R$ 15 million.
10. The 8,318.35 corporate kilometers include assets that were
not affected by Law 12,783 of 2013, including transmission
lines for which remuneration is associated with the exclusive
use of a generator or connection for large consumers. In
relation to 2018, there was a reclassification of part of the
O&M regime lines to not renewed.
11. Eletrobras considers the stretch of each bipole when
calculating the mileage of the direct current lines, both for the
Eletrobras lines and for the total of Brazil lines.
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GRI 103-2, 103-3
We also improved and expanded several transmission projects through
our subsidiaries, which influenced the improvement of most of Eletrobras’
operating indicators and the maintenance of a downward trend in the
Variable Portion. To maintain it, our companies work in two areas: resource
management and technology, in which the distribution of resources
along transmission lines in optimized regional structures, the strategic
management of maintenance through the most modern techniques,
many of which are already integrated with SAP, and the use of the most
modern maintenance techniques. We constantly invest in studies of new
transmission technologies conducted by Cepel (learn more on page 116).
Also, in conjunction with our companies, we developed the Work Clearance
Management tool, of the Plant Maintenance module from SAP, in which the
entire operation and maintenance of Eletrobras will be managed in a single
instance. The first to adopt it was Eletrobras Chesf and in 2020 we will extend
it to the other subsidiaries.
Still in 2019, we actively participated in the discussions related to the
Periodic Tariff Review of energy transmission, avoiding the substantial loss
of revenue at the end of five years, estimated at R$ 492.87 million, only
regarding operating costs, with expectation gains also in the asset base
and its rate of return. In 2020, we aim to drive the full implementation of a
regulatory policy focused on tariff improvement and more efficient costs.
Expanded transmission lines by type of venture | GRI EU4
(Km)
2019
2018
2017
2016
2015
2014
7,015
7,589
7,851
6,629
6,028
5,440
SPEs
Corporate
64,138
63,479
68,833
63,572
62,409
62,142
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Transmission availability index (%) | GRI EU6
Eletrobras System Robustness Index
2017
2018
2019
99.81
99.46
99.41
Note: the report of the indicator considers the transmission lines of the basic network
(voltage >= 230 kV) and does not include the lines that are Special Purpose Entities (SPE).
Technical transmission losses | GRI EU12
(%)
1.52
1.62
1.78
Index that assesses the capacity of the basic network to support
contingencies without interrupting the supply of electricity to consumers,
considering only the disturbances originating in the transmission network of
the Eletrobras companies. Our system has been improving its performance
in recent years, having registered a lower number of disturbances that
caused a load cut in 2019.
2019
2018
2017
100.0%
100.0%
100.0%
100.0%
99.2%
100.0%
100.0%
96.0%
98.3%
97.6%
95.3%
98.1%
2019
2018
2017
Charge cut
> 1000 MW
Charge cut
> 500 MW
Charge cut
> 100 MW
Any charge cut
Note: the report of the indicator considers the transmission lines of the basic network
(voltage >= 230 kV) and does not include the lines that are Special Purpose Entities (SPE).
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Planned capacity
GRI 103-2, 103-3, EU10
The current institutional model assigns the
main roles in the expansion of the electric
energy system to the agents, responsible for
the investments with the necessary advance
for the implementation of the new ventures,
guided by the Ten-Year Energy Expansion
Plan (PDE), prepared by the Energy Research
Company (EPE), linked to the Ministry of Mines
and Energy. The last plan - PDE 2029 -, launched
in 2020, it has the function, among others, of
indicating the need to increase the installed
capacity each year, which must be met by the
market with, for example, future purchase
auctions of new generation ventures. The PDE
indicates expansion scenarios of the generation
of energy and installed power for the various
sources, which is used by the agents for their
strategic and expansion planning, prospecting
and elaboration of enterprise studies. Companies
interested in exploring new ventures can enter
the auctions separately or in consortia.
Due to Eletrobras’ recent economic and financial
recovery period, until December 2019, our
companies’ Business Plans did not consider
investments in new generation projects, defining
the conclusion of the contracted projects as
the focus. For the next five years, the PDNG
2020-2024 presents two strategic guidelines
associated with new generation businesses:
consolidating the leadership in Generation &
Transmission, focused on clean energy; and
invest in new businesses, focused on energy,
participating in the consolidation of the sector.
The increase in Eletrobras’ installed capacity
in the period from 2019 to 2029 will be about
1,369 MW (including Angra 3), considering the
implementation of corporate and partnership
projects, already contracted, of which
Eletrobras holds a concession or authorization,
proportionally to its equity interest, and ventures
that will cease to operate.
Plants (UTEs) Mauá Blocos III and IV, Campos
and Senador Arnon Afonso Farias de Mello.
However, 150 MW of UTE Santa Cruz should start
operating in 2021.
In relation to wind farms, the Corrupião III,
Carcará, Caititu 2 and 3 parks of the Pindaí
I Complex, EOL Casa nova A and the Fortim
Complex - the latter consisting of five parks - will
start operating, which will increase the installed
capacity of this source by 190 MW in 2020. In
this calculation, wind farms participating in the
process of disposal in participations in SPEs in
progress were considered: lot 1 (Santa Vitória do
Palmar), lot 2 (Wind Farms Hermenegildo I, II, III
and Chuí IX), lot 3 (Wind Farm Chapada do Piauí
I), lot 4 (Wind Farm Chapada do Piauí II) and lot 5
(Wind Farm Mangue Seco 2), which represent an
installed capacity of 692 MW.
By 2029, a reduction in the installed capacity
of the Eletrobras companies of 236 MW of
the thermal park in the oil source is expected
with the deactivation of the Thermoelectric
The only venture on the nuclear source will be
the Angra 3 plant, which will add 1,405 MW to
the installed capacity of Eletrobras companies
in 2026.
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Evolution of installed capacity in the National Interconnected System Eletrobras System
Capacity x Total Planned Capacity (Ten-Year Energy Expansion Plan 2029)
2019
2024
2029
Brasil - SIN
(MW)
Syst. Eletrobras
(MW)
Shares
(%)
Brasil - SIN
(MW)
Syst. Eletrobras
(MW)
Shares
(%)
Brasil - SIN
(MW)
Syst. Eletrobras
(MW)
Shares
(%)
Natural gas
13,393.0
21,234.0
Source
Coal
Oil
Nuclear
Solar
Others
TOTAL
3,597.0
8,999.0
1,990.0
4,444.0
297.0
350.0
259.1
1,990.0
1,261.1
-
0.9
-
Hydroelectric
109,155.0
46,258.7
Wind
15,388.0
1,023.6
Biomass
14,996.0
9.7
2.9
3,017.0
3,052.0
100.0
1,990.0
350.0
23.1
1,990.0
1,301.1
9.4
42.4
6.7
-
0.0
-
117,635.0
46,258.7
24,532.0
1,213.6
22,471.0
9,831.0
7,147.0
-
0.9
-
11.6
0.8
2,083.0
391.0
350.0
23.1
100.0
3,395.0
3,395.0
6.1
39.3
4.9
-
0.0
-
36,190.0
1,271.1
121,657.0
46,258.7
39,561.0
1,213.6
25,535.0
20,444.0
8,726.0
-
0.9
-
16.8
5.9
100.0
3.5
38.0
3.1
-
0.0
-
172,259.0
51,143.4
29.7
210,909.0
51,137.4
24.2
257,982.0
52,512.4
20.4
Notes: 1. The evolution of installed capacity in Brazil within the National Interconnected System (SIN) was taken from PDE 2029. For the year 2019, the Monthly Monitoring Bulletin of the Brazilian Electric System
(December 2019), from the Ministry of Mines and Energy was used.
2. Includes the Brazilian half of Itaipu Binacional (7,000 MW).
3. For plants in partnership, the installed capacity was considered proportional to the shareholding.
4. The deactivation of some thermal plants was considered, as provided by the Eletrobras companies.
5. Renewal of hydro and nuclear generation assets was considered with the concession expiring in 2029.
6. The wind farms of the competitive disposal procedure in Eletrobras’ Special Purpose Entities were considered.
7. The Biomass source for the SIN in 2024 and 2029 includes the sum of the Biogas and Biomass PDE.
8. The source Others for SIN includes, for 2019, the values of the Monthly Monitoring Bulletin of the Brazilian Electric System (December 2019), of the categories “Others” and “Thermal GD.” For the
horizons of 2024 and 2029 of the SIN, this source includes information from the PDE 2029 for non-renewable Self-production.
9. Includes Fuel Oil and Diesel Oil (for the table’s Oil source).
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AND ETHICS
CAPITAL
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ANNEXES
Sectoral programs
GRI 103-2, 103-3
National Electricity Conservation Program (Procel)
We support important initiatives by the federal
government to promote the sustainable
development of society and the sector,
through universal access to electricity, the
encouragement of energy efficiency and the
expansion of science and technology in the
country. Below are the main programs developed
by the government in 2019, Eletrobras’
contribution and the results achieved.
Program coordinated by the Ministry of Mines and Energy and carried out by Eletrobras, aimed at
nationally promoting the efficient use of electric energy and combating waste. It involves education
(Procel Education), information dissemination (Procel Info), and energy efficiency actions in the
building, environmental sanitation, municipal energy management, public and industrial lighting
and energy efficiency support segments through transparency for the consumer (Procel Seal). The
benefits of the program are measured by saving electricity and, consequently, avoided greenhouse
gas emissions.
We have been running Procel since 1985, having produced, in 2019, an estimated savings of 21.6
million MWh - equivalent to 4.48% of the electricity consumption in the year -, avoiding the emission
of 1.6 million tCO2 equivalents. One of the highlights of the year was the international conference
“Pathways to Energy Efficiency in the Brazilian Air Conditioner Market,” promoted by Eletrobras
through Procel and in conjunction with the Instituto Clima e Sociedade (iCS), on March 25th. The
event, held at the Eletrobras headquarters in Rio de Janeiro, received representatives from the
Ministry of Mines and Energy and the Energy Research Company (EPE) and speakers from the United
States and India, as well as manufacturers, class entities and associations.
Since 2016, the financial resources invested in Procel are provided for by Law 13.280/2016, which
released Eletrobras from these investments.
1,420
1,453
942
9,700
10,517
11,680
3,687
4,023
4,453
15,154
1,238
8,375
1,965
21,201
22,987
21,607
1,701
1,621
6,887
7,257
8,129
2013
2014
2015
2016
2017
2018
2019
Energy saved
(thousand of MWH/year)
Reduced demand at
the edge (MW)
Avoided GHG emissions
(thousand tCO2 equivalents)
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Procel Education
Procel Info
Making information and educational resources available to the country’s
formal education system to encourage citizens to develop skills,
competences and attitudes for the efficient use of energy.
Through Procel in Schools, it develops and makes available the
methodologies “Energia que Transforma” (Transforming Energy) and “A
Natureza da Paisagem” (The Nature of the Landscape), to encourage and
facilitate the approach, by basic education teachers, of the themes of
energy efficiency and sustainable development. Since its launch in 2012, it
has benefited more than 3 thousand teachers and 60 thousand students in
the country.
In 2019, “Energia que Transforma” (Transforming Energy) was updated,
including the production of new materials adapted to digital technology,
developed with the advantage of offering multiplatform content, expanding
the reach and engagement of different audiences, especially young people.
For undergraduate and graduate students and professionals in the energy
sector, Eletrobras and Procel have invested in the formation of a network
of laboratories and research centers to design and disseminate advanced
educational tools in energy efficiency and to develop and monitor energy
optimization studies.
The Brazilian Energy Efficiency Information Center (Procel Info) gathers,
generates and disseminates relevant information, national and international,
on the efficient use of electricity, through the Procel Info portal, developed
by Eletrobras in 2006. In 2019, the address registered 54,772 registered
users, of which 460 were new, representing an increase of 0.85% in relation
to the previous year. 688 calls were made to the public and the portal
registered 1,539,614 accesses, an average of 128,301 accesses/month.
Thus, in order to continue to provide relevant and accurate information,
between July 2018 and April 2019, the Possession and Habits of Using
Electric Equipment in the Residential Class Survey was carried out, for which
166 municipalities were selected and visited in order to collect various data
such as average light bulbs per household; if they have air conditioners,
of what type and with what thermal capacity; if they have TVs and with
what type of screen; if they have a cell phone and how long the device
stays plugged in to charge the battery etc. The research is an important
management tool, as its results contribute to guide, plan and direct, in a
coherent way, the electric sector and public policies for building efficiency,
promoting a reduction in consumption and sustainability for the national
electric system.
Complete information about the search results
can be accessed on the website.
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Procel Seal
Informs the consumer about the energy consumption profile of equipment and appliances, promotes
the development and technological improvement of manufacturers and supports the training of
laboratories and research centers. Manufacturers are encouraged to adapt their products to electricity
consumption rates, according to the Energy Efficiency Law 10.295/2001, and receive subsidies for the
preparation of technical standards for energy efficiency. Cepel has an important role in this project,
which it has supported since the beginning, in 1993, through its researchers and laboratories.
Procel Reluz
The National Program for Efficient Public Lighting (Procel Reluz) promotes actions and projects in the
public segment and was instituted in 2000 by Eletrobras, with the support of the Ministry of Mines
and Energy. Until 2012, the Program was implemented by electric energy concessionaires with the
participation of city halls and state governments.
As of 2016, within the scope of Law 13.280/2016, a new phase of Procel Reluz begins, with the main
changes being the selection of projects, which began to occur through Public Calls for Projects,
exclusively in those 100% with LED technology; and the exchange of responsibility for implementation,
which became the responsibility of the municipal public administration.
In 2019, Procel promoted partnerships with municipal administrations from all regions of the country,
which resulted in a set of modernization and efficiency actions for public lighting systems in these cities.
Over 14 thousand public lighting points were made efficient and, in the process, thousands of lighting
fixtures with traditional technology were replaced by lighting fixtures with LED technology. At the end
of the interventions, approximately 7.4 million kWh/year were saved and the demand for installed load
was reduced by 54%.
Still in 2019, a new public call for projects was made to start another wave of efficiency, which twice
exceeds the previous efficiency. The forecast is to make efficient with LED technology about 30
thousand public lighting points in municipalities in all regions of the country. The works are expected to
start in the first half of 2020.
Over 14 thousand public lighting
points were made efficient and, in
the process, thousands of lighting
fixtures with traditional technology
were replaced by lighting fixtures
with LED technology.
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Programa Luz Para Todos (LPT)
It aims to provide free access to electricity to the portion of the rural population that still does not have
access to this public service through extensions of electricity distribution networks, the implementation
of generation systems with renewable energy sources in remote areas and making free calls and
installation in homes with up to three light points, one per room, two plugs, conductors, lamps and
other necessary materials.
The LPT, which was postponed until December 2022, is a vector for social and economic development
in low-income communities, contributing to the reduction of poverty and the increase in family
income, in addition to facilitating integration into health, education, water supply and sanitation
services, as well as social programs of the federal government.
The financial resources applied come from the government itself, as a subsidy, through the Energy
Development Account (CDE) and, as a financing, through the Global Reversion Reserve (RGR) or Caixa
Econômica Federal, in addition to resources of the state governments involved and the executing agents
themselves.
Floating solar panels in the Sobradinho reservoir (BA). Chesf Collection.
Eletrobras manages contracts with federal
resources and monitors the execution of the
set of rural electrification works associated
with them.
Incentive Program for Alternative Sources
of Electric Energy (PROINFA)
Created in 2002 with the objective of increasing
the share of alternative renewable sources in
the Brazilian energy matrix, adding to the SIN
projects based on wind, small hydroelectric
plants (PCHs) and biomass. The Ministry of Mines
and Energy defined the total installed capacity to
be contracted and assessed the impact of costs
on final consumers. Eletrobras contracted and
selected the projects for the purchase and sale
of energy. The transaction ended on December
31, 2011.
The program, in addition to contributing to
the diversification of the country’s energy
matrix, generated about 150 thousand direct
and indirect jobs throughout Brazil, providing
industrial advancement and internalization
of cutting-edge technology, and reduction of
greenhouse gas emissions, and exposure to risks
related to energy generation activities, such as
hydrological risk.
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INTELLECTUAL CAPITAL
P&D e Innovation
GRI 103-1, 103-2, 103-3, EU8 | SDG 7, SDG 9, SDG 17
The Electric Energy Research Center (Cepel),
of which Eletrobras is the main sponsor, is the
largest technological research and development
center in the Latin American electric sector.
Through Cepel, we invest in the development of
new technology projects and act in accordance
with the Research & Development and
Innovation Policy of Eletrobras Companies to:
create favorable conditions for the
optimization of investments, minimizing
redundancies and waste, disseminating and
sharing results and maximizing performance;
systematize planning, execution,
accountability and internalize the results of
P&D+I projects, seeking to reach the final
stages of the innovation process; and
maximize the performance of Cepel in the
activities of Technology and P&D+I and in the
dissemination of results.
The P&D+I strategy is always in line with the
Strategic Plan of the Eletrobras Companies. We
must foster mechanisms for recognizing and
valuing employees who contribute to the results
of the projects.
Action planning meets the guidelines established
by the majority shareholder through policies
and plans, the specific legislation in force in
the sector and the P&D+I needs of Eletrobras
companies, ensuring that efforts are kept in
line with the objectives and interests of those
involved. In 2019, we restructured the Rules of
Procedure of the Technology Policy Commission
(CPT), creating the P&D+I Management Group,
a forum with representatives of all Eletrobras
companies that has, among others, the function
of internally identifying problems and propose
actions and activities to mitigate or solve them.
Linked to the CPT are the Technical Groups (GTs),
responsible for raising our investment needs in
P&D+I. These GTs are divided into Generation
and Commercialization, Transmission, Energy
Efficiency, Laboratory and Innovation and have
representatives from all Eletrobras companies,
which allows for the sharing of information,
the formation of partnerships and synergy in
the proposition and development of projects.
In September of that year, Eletrobras created
the Technological Development and Innovation
Advisory, linked to the Transmission Directorate,
to support and put the CPT into full operation.
Law No. 9.991, of July 24, 2000, obliges the
concessionaires of generation and public energy
transmission services to annually apply 1% of
the Net Operating Revenue in research. This
amount is a minimum investment target for
Eletrobras. Due to the accumulation of resources
earmarked for P&D+I in previous years, some
of our companies have an accumulated liability
balance, which generated a commitment to
carry out actions to reduce this amount until its
complete extinction.
For 2020, we are preparing a procedure for
the operation of the CPT and subsequent
monitoring of its execution, which will give rise
to relevant management and technical reports
and mechanisms to assess the effectiveness of
P&D+I management.
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Total investment in R&D + I by category
(R$ million)
Total investment in R&D + I
(R$ million)
2019
2018
2017
319.4
337.0
307.6
194.60
182.5
233.9
Renewable energy
33.47
41.3
59.3
Distributed energy
1.09
1.8
3.6
Innovation for
sustainability
9.3
25.8
50.59
17.58
19.3
18.3
Energy efficiency
Generation and
transmission
technologies
Distribution
technologies
22.09
36.1
13.4
2019
2018
2017
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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2019 Highlights
International study tender completed
Acre Energy Excellence Center (CEEAC)
Center in the final phase of construction next to the Campus of the Federal
University of Acre (UFAC), with partial opening scheduled for mid 2020. It
focuses on research and services through the formation of networks of
associated researchers nationally and internationally. It has a structure of
laboratories in the coworking/service incubator format and will also work
on innovation and entrepreneurship. The basic infrastructure has a state-
of-the-art communication system, accommodation, seminar rooms, among
other facilities.
The research axes will be distributed generation and micro-networks,
sustainable development, and energy efficiency by generation through
biomass and solar energy.
The date of March 15, 2019 highlighted the construction of our
intellectual capital, as Eletrobras, the National Electricity Company
of Bolivia (Ende) and the Inter-American Development Bank (IDB)
concluded an international bid coordinated by the IDB to contract
the Study of Electric Interconnection between Bolivia and Brazil. On
that date, the presidents of Ende, Joaquín Rodríguez Gutiérrez, and
Eletrobras, Wilson Ferreira Junior, met at our facilities in São Paulo, when
they concluded the signing of the contract with the winning consortium
and the IDB.
The winner was the consortium formed by the companies Sigla
Consultora en Energía da Argentina, Comillas Universidad Pontificia
de Madrid and MRC Consultants and Transaction Advisers. It will
conduct a planning study and basic technical studies of the electrical
interconnection alternatives between Bolivia and Brazil, based on the
quantification of global and individual economic benefits.
The electrical integration between Brazil and Bolivia brings important
economic, social and environmental benefits, such as the reduction
of generation costs due to the complementarity that exists in each
country, contributing to the diversification of energy matrices, greater
security of supply, the reduction of hydrological risks and greater
environmental sustainability.
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Energy transition
GRI 103-1, 103-2, 103-3 | SDG 1, SDG 2, SDG 3, SDG 7, SDG 11, SDG 12, SDG 13, SDG 14, SDG 15
Motivated mainly by curbing global warming, the
energy transition consists in the decarbonization
of the energy matrix through the substitution of
sources from fossil fuels for clean energy. The
national matrix has a relevant share of renewable
sources, however, there are opportunities for
transition, especially in relation to the energy
consumed by transport, since the main Brazilian
mode is still the road.
In terms of the electric matrix, formed by the set
of sources available only for the generation of
electric energy, the Brazilian one is even more
renewable than the energy source, with an 82%12
share of sources of this type. The portion of the
electrical matrix to be decarbonized, therefore, is
not so relevant today.
However, it is worth mentioning that the
Decennial Energy Plan 2029 (PDE), issued by the
Energy Research Company (EPE), linked to the
Ministry of Mines and Energy (MME), provides
that from 2020 the Brazilian electricity matrix
will increase the carbon participation through
the entry into operation of thermoelectric
plants based on natural gas by encouraging
public policies formulated by the MME, such
as, for example, the New Gas Market Program,
launched in July 2019, and the modernization of
existing plants for extended life. There will also
be a reduction in the entry into operation of
new hydroelectric plants, which will be replaced
to meet the growing demand for energy by
thermoelectric plants, mainly natural gas, mainly
due to the operational flexibility and modulation
of this type of plant.
Wind and photovoltaic sources are increasing
their participation in the electrical matrix,
but they depend on climatological and
meteorological phenomena and have less
predictability compared to hydraulics and
thermoelectric sources. According to PDE 2029,
wind, photovoltaic and biomass plants and small
hydroelectric plants will represent 33% of the
generation capacity in a ten-year horizon, while
the representation of hydro will drop to 49%.
In this context, EPE signals that there will be no
energy transition to cleaner sources in the next
ten years.
Eletrobras has a methodology for prospecting
and studies of the various sources of generation
available, aiming to diversify its operation.
We prioritize the development of renewable
sources, but we also consider opportunities for
gas thermal generation. We use a selection and
prioritization tool that helps in choosing projects
from different sources, in line with strategic
orientation and business opportunities. For
projects based on carbon emitting sources, we
seek to optimize existing ones and accompany
the development and improvement of methods
for monitoring and reduction, which allows us to
choose projects that are more energy efficient
and with the lowest possible emission.
We developed projects with unconventional
and innovative sources, such as the floating
photovoltaic plant in the lake of the Sobradinho
Hydroelectric Plant (BA) and the hydrogen project
in Itaipu, in addition to investments in Cepel
in research applied to the topic. In 2019, the
creation of the Eletrobras Generation Expansion
Planning Committee (Copeg) was formalized, for
coordinated action with companies on generation
issues, and a working group on unconventional
sources was established. More information on
the topic and its developments at Eletrobras can
be obtained in the P&D+I and Manufactured
Capital sections of this report (pages 116 and
103 respectively) and in the reports of the
companies in our system.
12.Source Energy Research Company (EPE)
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SOCIAL AND RELATIONSHIP CAPITAL
Customer satisfaction
Satisfaction survey
GRI 102-43
Since 2014, we have conducted a unified biennial
survey on the level of customer satisfaction,
with a commercial focus on generation and
transmission. We use the Customer Window
methodology, that allows us to measure
the degree of customer satisfaction with
the commercialization of the generation,
transmission and research, development and
innovation businesses, based on perceptions
about the value attributes and the degree of
importance given by the customer.
The last edition was held in 2018, with the
participation of the Eletrobras CGTEE, Chesf,
Eletronorte, Eletronuclear, Eletrosul, Furnas,
Amazonas GT and Cepel companies - the latter
two novelties of the edition.
Check the results on page 142 of the
2018 Annual Report
Employee communication and engagement
GRI 102-43
In 2019, our internal communication prioritized strategic themes. 34 campaigns were developed,
much of it integrated with the other Eletrobras companies, under the coordination of the holding
company. There was an increase in the production of special newsletters to address topics of interest to
employees, which reached a total of 105.
The campaign to publicize the two editions of the Consensual Dismissal Plan (PDC) provided a specific
section on the subject on the intranet with detailed content, updated periodically. A new series of
videos was produced, called “Tira-Dúvidas” (Clear Doubts), responsible for the largest audience of the
year among all the videos produced, with 2,622 hits.
The Zero-Base Budget (OBZ) project was disseminated, implementing this organizational budget
methodology, simultaneously at the holding company and Eletrobras companies, through banners and
specific content, in addition to videos for corporate TV, marketing emails and internal reports.
There were two campaigns related to operational activities: the one on Dam Safety and the one on
reaching the 50,000 MW mark in our generation park, with banners for intranets and websites, content
for internal reports and posts on social networks.
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The actions of the Integrity (Compliance) Program were disclosed, among other formats, in two videos:
one from the “Minute of Leadership” series, with the Eletrobras Compliance director, on the Week
of Integrity and Ethical Culture, and another on the activities carried out in that period. Posts
were also published on the companies’ social networks about the event and the International Day
to Combat Corruption.
The Communication teams of the Eletrobras companies participated in meetings in September
and December to exchange experiences and knowledge, to discuss the strategic pillars of the
Communication and Engagement Policy of the Eletrobras Companies, in addition to planning actions
for 2020.
A new internal communication vehicle was also launched: Connection, monthly electronic report to
leaderships of the holding. The delivery of the newsletter was extended to the Board of Directors at the
request of this body.
The Executive Board met in person with leaders and employees in two presentations of results for
managers, with live transmission to all employees, on August 14 and November 13. In addition, the
Eletrobras 2019 Annual Meeting was held on December 18, for employees based in Rio de Janeiro.
214 people were present, who attended the presentation by the lecturer and professor of creativity
Murilo Gun, with the theme “Innovation and Imagination in Problem Solving.” In the opinion of 68% of
respondents to the post-event satisfaction survey, the initiative was considered “good” and, for 49%, it
contributed to personal or professional development.
Leaders of the holding in a meeting on building a high performance culture.
Eletrobras holding collection / Cláudio Ribeiro.
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Press
GRI 102-43, 102-44
Shareholders and investors
GRI 102-21, 102-33, 102-43
In 2019, 254 press requests were received - 69%
of them were answered. The most requested
topics (29%) were related to the presidency/
institutional, with emphasis on the privatization
of Eletrobras. Then came the demands on energy
generation (19%, with emphasis on the Itaipu
agreement) and financial issues (18%).
From May to December 2019, there were
approximately 6 thousand insertions in
the press, an average of 763 per month,
considering articles published on or with quotes
to the company.
24 press releases were sent, including 18 releases
and 6 agenda notices, the latter ones calls for
the three press conferences granted by President
Wilson Ferreira Junior throughout the year, to
comment on the financial results of the quarters.
Eletrobras’ president, Wilson Ferreira Junior,
carried out, in 2019, engagement actions with
investors, shareholders and capital market
analysts. According to the calendar released
on March 20, we provide information on our
main results on the Road Show in several North
American cities, between April 15 and 19. The
executive also participated in conference calls
and meetings at the Association of Capital
Market Investment Analysts and Professionals
(Apimec) in São Paulo and Rio de Janeiro. In late
August, the president received market analysts
at the company’s head office in Rio de Janeiro for
breakfast, when the company’s capitalization
process, compulsory loans and the resumption of
construction of Angra 3 were discussed.
Every six months, we present the company’s
results to our shareholders at meetings held at the
headquarters of the Association of Capital Market
Investment Analysts and Professionals (Apimec)
in São Paulo, Rio de Janeiro, Brasília and Belo
Horizonte. We also produce communications to
the market, as required, and quarterly conference
calls with their agents.
The Eletrobras website has the “Fale com o RI”
(Talk to IR), a channel through which shareholders
can express doubts, recommendations or other
requests relevant to the Investor Relations area.
This contact can also be made by email or phone.
Our website also includes the Manual for
Participation in Eletrobras Shareholders’
Meetings, in which we present information for the
understanding of the proposed matters, in order
to encourage participation in these events.
In 2017, we created the Ombudsman System
for the Securities Market - IR Ombudsman. In
compliance with Instruction No. 529/2012 of the
Brazilian Securities and Exchange Commission
(CVM), through the system we receive, register,
analyze, instruct and respond to queries,
suggestions, complaints, criticisms, compliments
and complaints about activities related to the
stock market.
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Most of the company’s profiles
(Instagram, Twitter, LinkedIn and
YouTube) had an increase in the number
of publications and followers/views
compared to 2018. In January 2020,
Eletrobras debuted its podcast schedule.
Sponsorships
GRI 102-43
Society
GRI 102-43
Since 2018, we have been strategically
repositioning ourselves on social media to
increase our visibility and interactivity with
society. Most of the company’s profiles
(Instagram, Twitter, LinkedIn and YouTube) had
an increase in the number of publications and
followers/views compared to 2018. In January
2020, Eletrobras debuted its podcast schedule.
The first season, “Eletrobras 2030,” addresses
topics related to sustainability.
In 2019, we held the eighth edition of the
Eletrobras Companies Sponsorship
Program for Electric Sector Events, launched
in April 2019, with results released at the end
of June. We selected 24 titular projects and 9
alternate projects.
In the same year, Eletrobras holding, Furnas and
Eletronorte launched, in August, the seventh
edition of the Eletrobras Companies Cultural
Program, which included performing arts and
intangible cultural heritage. We selected 22
titular projects and 8 alternates.
In October, we launched the first edition of
the Eletrobras Companies’ Sports Sponsorship
Program, inspired by the renewable energy
of waters, the main input of the company’s
business. Eight titular projects and three
alternates were selected.
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Community engagement
GRI 102-21, 102-43, 413-1, 413-2 | SDG 1, SDG 2, SDG 11, SDG 16
Our operations can have a greater or lesser impact depending on the
size and the region where they will be installed, which is why community
engagement is essential from the stage of studies for a new venture, to the
operation itself, in order to propose actions that minimize or offset impacts
on affected communities.
In addition, we operate in line with the Global Compact, to which
we are signatory, and guided by our Sustainability, Environmental,
Social Responsibility and Communication and Engagement with
Stakeholders policies.
Local communities can be impacted mainly by the need to move, by
changes in the environment surrounding the operations and by interference
in the dynamics of traditional and indigenous peoples. We also seek to build
and operate our projects in order to make them a vector of economic and
social development in the regions where they are installed.
We continually renew our commitments expressed in the Environmental
Master Plan and in the Interaction Processes document between the
Brazilian Electric Sector and Society, launched in the early 1990s.
Our Environmental Policy has specific guidelines for dealing with the
relocation of affected populations and host communities, education and
environmental communication.
Our guideline is to promote ethical and transparent dialogue that supports
a qualified engagement and relationship with the communities, recognizing
their culture, forms of social organization and the representatives indicated
by them.
We work through the elaboration of participative socio-economic
diagnoses, the implementation of communication and social interaction
and environmental education programs, promoting the construction and
strengthening of community forums and articulations with public and
private agents. The results of the programs developed within the scope of
environmental licensing are presented to the population.
The Eletrobras Companies’ Social Responsibility Policy was recently updated
in 2018. This document is based on the Sustainable Development Goals
(SDGs), which also guide the prioritization of projects to be supported by the
company, always with a view to overcoming inequalities and the sustainable
development of the communities with which Eletrobras relates.
Commitments in the relationship with the community
Open and permanent dialogue
Promotion of improved quality of life
Respect for the values and
interests of each community
Safety and protection of populations in
emergencies
Awareness about the safe, efficient
and responsible use of energy
Recognition and respect for the culture
and form of social organization of
all impacted communities, including
traditional indigenous communities
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International engagement
GRI 102-43, 413-1
In 2018, Eletrobras, the Bolivian state-
owned Empresa Nacional de Electricidad
(Ende) and Corporación Andina de
Fomento (CAF) began studies on
the hydroelectric inventory in the
binational stretch of the Madeira
River and its main tributaries, located
in Bolivian and Brazilian territories.
A base office was installed in the
city of Guajará-Mirim (Rondônia)
for the implementation of the Social
Communication Plan (PCS) - the first
carried out at this stage of the studies
- and as support to carry out technical
studies in the field.
By 2019, computing the
communication and social interaction
actions in Brazil and Bolivia, where
inventory studies are carried out,
830 folders were distributed, and 65
urns were installed in various cities to
receive manifestations from the local
population. From the beginning of
the communication actions until the
end of 2019, 600 manifestations were
registered via telephone, WhatsApp,
e-mail, website and ballot boxes,
covering both territories.
Management of impacts on communities
Indigenous communities and traditional peoples
GRI 102-43, 103-1, 103-2, 103-3, 413-1
We seek to avoid direct impacts on indigenous communities and traditional peoples, corroborating
the changes brought about by the 1988 Constitution. If there is any interference, we apply good
relationship practices, seeking to promote respectful coexistence, recognizing traditions, culture
and customs.
The presence of traditional populations in the areas of installation of enterprises is verified since the
studies of hydroelectric inventory of hydrographic basins. It is during the conduct of environmental
impact studies, part of the environmental licensing process, however, that such surveys are
deepened. Based on the identification and assessment of impacts, actions are defined and detailed,
organized in programs, to mitigate and compensate for the negative impacts and optimize the
positive impacts of the implementation of a given enterprise, which, in the case of indigenous
peoples, must consider the recommendations of Funai in the preparation of the Studies on the
Indigenous Component and the Basic Environmental Project for the Indigenous Component - PBA -
CI. Communication and social interaction actions use accessible language and are usually
carried out in the form of participatory workshops and are monitored by the National Indigenous
Foundation (Funai).
The enterprises that have been in operation since before the 1988 Constitution, in turn, are obliged,
in the renewal of their operating licenses, to carry out Studies on the Indigenous Component (ECI),
under the coordination of Funai, and to adopt measures related to possible impacts.
The indigenous issue is monitored by the Eletrobras Companies Environment Committee, through a
permanent working group created in 2019, based on the Commission that has existed since 2012. The
Commission prepared the guidelines for relations with these peoples, approved by the Environment
Committee in 2018 and by the Board of Directors in 2019, and included in version 4.0 of the
Environmental Policy.
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For formal handling of complaints, we have
the Contact Us Environment and, in the case
of relationships with indigenous communities,
there is necessarily a formal and direct
communication channel linked to the projects.
In 2019, Eletrobras Eletronorte performed
the Simplified Environmental Study of the
Indigenous Component (EAS-CI) of the 500
kV Tucuruí-Marabá-Imperatriz-Presidente
Dutra Transmission Lines (C1 and C2), which
intercept the Krikati Indigenous lands (Krikati
ethnic group), Cana Brava (Guajajara ethnic
group) and Mãe Maria (Gavião Parkatêgê
ethnic group). The project was requested
by Funai and recommended by Ibama as
one of the conditions for the renewal of the
Transmission Lines Operation License. The
preparation of the Basic Environmental Project
for the Indigenous Component (PBA - CI) was
initiated, which detailed the initiatives to be
implemented. Actions and communication and
social interaction are carried out in the form of
participatory workshops, covering one or more
villages. The workshops are conducted by the
Funai representative. Actions were taken to
present the work proposal and to assess the
results of the studies.
In 2019, the holding company continued its
participation in projects with Kayapó indigenous
communities in the middle Xingu, in southern
Pará. Composed of 4,500 indigenous people
and 40 villages, the group is indirectly impacted
by the Belo Monte hydroelectric plant. The
projects were developed in partnership with the
National Indigenous Foundation (Funai), Norte
Energia - which provides financial resources
- and the Kayapó representative institutions
(Kabu Institute, for the Western Kayapó, and
the Protected Forest Association - AFP, for the
Eastern Kayapó) to better meet the demands of
indigenous communities.
The Kayapó Mekrãgnoti Program - started in
April 2019 - will receive total investments of
R$ 11.3 million by 2023. We are responsible
for monitoring, supervising and managing
the relationship with the communities. With
the program, Kayapó indigenous people and
the Kabu Institute carried out, among other
activities, 34 expeditions of inspection and
surveillance of indigenous lands - Indigenous
Lands (TIs) Baú and Mekrãgnoti, by boat, land
and air. The main objective is to identify and
combat mining outbreaks, overfishing and all
types of illegal intrusion. The findings were
Chief Kaiapó. Eletrobras holding / Jorge Coelho collection.
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recorded in six monitoring reports, shared with Eletrobras and government agencies, including Funai.
In the past, reports like these have subsidized operations of the National Force and Ibama, which
apprehended intruders at the head of illegal IT activities.
The Eastern Kayapó Autonomy Support Plan ended in April 2019. The rest of the year was dedicated
to the analysis of accountability. The indigenous people are calling for the celebration of a new
project, which, like the Western Kayapó/Kabu Institute, would be the third to be carried out with their
communities. The issue is being addressed between Eletrobras’ senior management and
Norte Energia’s.
The main results of these experiences are the institutional strengthening of the entities that represent
the Kayapó and execute the projects; inspection and protection of indigenous lands; fostering
sustainable economic activities; and the cultural appreciation of ethnicity. In addition, in the middle
of the “Arco do Desmatamento” (Deforestation Arc), in the south of Pará, these communities have
preserved the natural resources of the Xingu River basin, of strategic interest to Eletrobras, as it is the
river that feeds the Belo Monte HPP.
Eletrobras companies did not register any cases of violations to the rights of indigenous peoples in
2019. GRI 411-1
Belo Monte HPP receives socio-
environmental monitoring mission
Between May 18 and 22, 2020, the Belo
Monte HPP was inspected by the 29th
Independent Socio-Environmental
Monitoring mission, under the Equator
Principles, conducted by independent
consultants on demand from the financial
agents Caixa Econômica Federal and BTG
Pactual, signatories of these principles.
Due to the pandemic of the new
coronavirus, all meetings with the
auditors were held, in an unprecedented
way, by videoconferences. In all, there
were 32 meetings, with 108 participants.
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Global fund portfolio exit
On May 16, 2020, Eletrobras received news of
the company’s exclusion from the list of the
Norwegian Government Pension Fund Global
portfolio. The main justification was an alleged
violation of human rights by the Belo Monte
hydroelectric plant project, which Norte Energia
S.A (SPE Belo Monte) is responsible for, in which
we participate with 49.98%, in partnership with
other state and private companies.
The company clarifies that, on the occasion of
the installation and start-up of the Belo Monte
HPP, socio-environmental actions were taken by
Norte Energia S.A. in order to mitigate and offset
the potential negative impacts in the region
of the enterprise, following the environmental
licensing process.
In this sense, we understand that the conclusions
presented in the Norwegian Government Pension
Fund Global document reflect partial positions
of stakeholders involved in the process; does not
analyze the reality existing in the region before the
implementation of the project; as well as it does
not expose the measures effectively adopted by
the entrepreneur in the outline of the complexities
involved with the different audiences.
Thus, Eletrobras and Norte Energia refute the
idea that the enterprise contributed or was
responsible for human rights violations. We
believe that the investments in the region were
planned to repair or minimize the impacts caused,
aiming at the same or better conditions than
they had before the installation of the project.
One of the indicators on such investment is that,
between the years 2010 and 2015, according to
the Socioeconomic Monitoring Program carried
out by Norte Energia since the beginning of the
implementation of the Belo Monte HPP, there was
a reduction from 25% to 5% in the percentage of
residents living below the poverty line in Altamira.
Another point to be considered is the complexity
of the Brazilian environmental licensing process
and the level of requirements applied to HPP
Belo Monte, which reflected in a milestone
for the environmental licensing process in the
country, considering the size of the requirements
presented according to the region’s reality and
the technical and financial efforts undertaken.
This configuration resulted in the granting of
Environmental Licenses to the enterprise, even
though these have implied specific conditions.
Eletrobras and Norte Energia understand that
understanding this context sheds light on
the complexity of the interactions that were
developed during the construction of the project
and the challenges overcome in the execution
of the projects. That said, they consider that
it cannot be argued that there was a lack of
implementation of compensation and mitigation
measures to reduce the risk of the enterprise.
It is also important to emphasize that, in line
with the issues considered by the Ethics Council,
Norte Energia has guided its actions observing
the guiding principles for human rights in
its different approaches, with interactions,
responses and actions in view of the different
recommendations received throughout the
implementation and operation of the Belo
Monte HPP.
It is also important to note that the
implementation of the Belo Monte HPP has
resulted in significant efforts to establish
dialogue with communities – non-indigenous and
indigenous - in the area affected by the project,
as well as with other stakeholders. This process
started in the Environmental Studies phase,
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The implementation of the Belo Monte
HPP has resulted in significant efforts to
establish dialogue with communities –
non-indigenous and indigenous - in the
area affected by the project, as well as
with other stakeholders.
culminating, on the occasion of the prior environmental licensing of the enterprise, with the holding of
Public Hearings (APs), resulting subsequently in the issuance of the Prior License by the Brazilian Institute
of the Environment and Renewable Natural Resources (Ibama) on February 1, 2010*.
Subsequently, the continuity of the dialogue process was one of the factors that also guaranteed Belo
Monte HPPwith its Installation License, granted to Norte Energia by Ibama in 2011, thus enabling
the construction of the plant to begin; and, in the same way, the conquest, in November 2015, of the
Operation License for the enterprise, which enabled the beginning of commercial energy generation.
It is also pointed out that, taken as a whole, the socio-environmental commitments entered into by
the entrepreneur in the Middle Xingu region meet various measures for the prevention, mitigation and
compensation of socio-environmental impacts of a negative nature, as well as leveraging other impacts of
a positive nature.
Thus, the general context of the enterprise, briefly exposed here, demonstrates Norte Energia’s effort for
development and transparency in the socio-environmental actions carried out, which are monitored by
the intervening government agencies, as well as the concern in meeting the national and international
guidelines and recommendations throughout the complex process that involves the implementation of
the Belo Monte HPP.
Finally, we emphasize that Norte Energia sought to take steps to resolve the requests and requirements
pointed out by the National Indigenous Foundation (Funai).
More information can be obtained in the
Eletrobras 2018 Annual Report (page 158)
* The date “2020” was used in the Portuguese version of this report, and it was changed to “2010” in the English version.
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Displacement of populations and changes in social dynamics
GRI EU20, EU22
Guidelines for the relocation of populations affected by our projects
have been part of our Environmental Policy since 2016. They establish,
for example, that Eletrobras companies must monitor the evolution
of the socioeconomic conditions of the relocated population and host
communities, with quantitative and qualitative assessments, at least, for the
period established by the environmental licenses.
We also fulfill legal commitments and obligations during the environmental
licensing process, such as Federal Decree 7.342/10 and Interministerial
Ordinance 340/12, which deal with the socioeconomic registration
of the population affected by dams. In order to understand our socio-
environmental impacts, we carried out studies and Socioeconomic registration.
Based on the understanding of our impacts, we created the Basic
Environmental Plan, specific to each project and approved by the
environmental agency. During its execution, relationship channels are
structured, including permanent forums for interaction with the affected
communities. We install toll-free services (0800) and maintain fixed and
mobile offices to serve the population. As a rule, there are “complaints
books” with procedures for responding. Eletrobras companies also have
channels such as the Ombudsman and Contact Us, which are presented to
the population.
The Environmental Policy guidelines direct that the socio-cultural and family
ties of the affected populations be considered when proposing alternatives
for relocation and that Eletrobras companies provide social assistance
to vulnerable people, especially the elderly and those with special needs
that are directly affected by the enterprise. The teams usually have social
workers, professionals trained to observe, highlight and forward solutions
to cases involving especially psychological impacts on the most vulnerable
people and social groups. Sociologists and anthropologists, based on
participatory diagnoses, identify impacts classified as intangible and seek
to propose collective redress actions. In 2019, Eletrobras did not move or
relocate people.
Community safety
GRI EU21
Our Emergency Assistance Plans establish responsibilities, measures and
effective actions to be taken during contingency situations. Each project
has a specific plan, constantly updated, covering social and environmental
aspects for cases of natural disasters, spills, fires, problems with information
technology, strikes, image crisis, among others.
Emergency brigades and employees working in areas considered at risk are
trained to know how to act, if necessary. As an example, we can mention
the case of Eletrobras Eletronuclear, where the simulations are carried out
periodically (annual simulations) and certified by competent bodies.
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Investments in communities
SDG 8
Volunteer Program
GRI 413-1
In 2019, Eletrobras companies allocated R$
423.2 million to voluntary initiatives on behalf
of the communities with which they relate,
supporting actions, donations and projects of a
social character, infrastructure, cultural, sports,
environment, territorial development, promotion
of citizenship, education, rights of children and
adolescents, generation of work and income,
health and food security and volunteering.
Linked to the Eletrobras Companies Integrated
Communication Committee, the Eletrobras
Companies Volunteer Subcommittee was created
in 2018, aiming at the alignment and structuring of
corporate volunteering programs, for an efficient
and shared management.
The Eletrobras Volunteer Program allows
employees and their families to participate in
inclusive and collaborative social actions with
vulnerable audiences, in partnership with social
assistance institutions. Our volunteers dedicated
598 hours to 59 actions and 6 campaigns,
benefiting 3,597 people. In addition to the hours
used to carry out the actions effectively, 80 hours
were spent in planning and alignment meetings
with the benefited institutions. The company
invested R$ 51.6 thousand to support the activities.
Discover the volunteer programs of Eletrobras
companies on their portals:
Furnas
Itaipu
Eletrobras Chesf
Fish farming station. Eletrobras Chesf.
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Social initiatives
GRI 413-1
Social Projects
In 2019, the Public Notice for Social Projects of Eletrobras Companies was opened in order to generate
value for social and relationship capital, allowing for broad national participation. The announcement
was in line with the Sustainable Development Goals (SDGs) of the 2030 Agenda of the United Nations
(UN), in particular SDG 8 - Decent Work and Economic Growth and its respective goals. Its structuring
axis was complementary education - qualification for professional training -, with the aim of improving
and developing skills for insertion and meeting the demands of the labor market, thus seeking to
contribute to the reduction of social inequalities and improve the quality of life of vulnerable groups.
146 projects were received, which were evaluated according to the criteria of relevance, feasibility,
sustainability, qualification of the entity, cost per beneficiary, location in the coexistence area of
companies and Human Development Index (HDI) and classified after delivery of all required documents
in the notice. Of these, Eletrobras companies selected 17 projects, of which 12 are titular and five
alternates. The announcement was launched for the allocation of up to R$ 1.52 million and shares were
selected in the total amount of R$ 1.2 million, to be supported by the holding company and Eletrobras
Amazonas GT, Eletronorte, Eletrosul and Furnas.
Sports and cultural projects
Also in 2019, in parallel to the Social Projects
Notice, the Sports Sponsorship Program was
initiated, which aims to encourage projects of
a sports nature that propose the development
of base athletes to train the future Olympic
generation in Brazil, considering exclusively
the Canoeing, Artistic Swimming, Swimming,
Water Polo, Rowing, Diving, Surfing and Sailing
segments. Of the 49 projects received, Eletrobras
and its subsidiaries Eletrobras Furnas and
Eletronorte selected 11, of which 8 were titular
and 3 alternates. The notice will invest the
amount of R$ 1.72 million in water and nautical
sports projects.
The Eletrobras Companies Cultural Program was
also resumed, with the aim of promoting support
for culture by sponsoring creative proposals,
which encourage new perspectives on the
various artistic areas and value cultural wealth in
the most diverse regions of Brazil. Of the 1,762
projects received, Eletrobras companies selected
22, 8 of which were for adult theater production,
4 for juvenile theater production, 4 for theater
performances, 4 for theater festivals and 2 for
intangible heritage, adding up to an investment
of up to R$ 6.35 million through the holding
company and Eletrobras Furnas and Eletronorte.
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NATURAL CAPITAL
Environmental management system
GRI 413-2
Rational and responsible environmental
management is essential to the sustainability
of our operation and to our value generation
model, since our businesses depend directly on
natural resources. We have an Environmental
Management System based on three main
elements: the Environmental Policy of Eletrobras
Companies, the Environment Committee
of Eletrobras Companies and the Corporate
Sustainability Management Indicators System
(IGS System) - Environmental Module. A fourth
element is being developed: the Environmental
Licensing Monitoring System (SAL), a
computerized tool to monitor the environmental
licenses and conditions of the Eletrobras
companies’ generation projects, in addition to
the environmental infraction notices.
When planning our projects, we develop studies
to identify and assess environmental and social
impacts, which are submitted to environmental
organs responsible for environmental licensing.
These studies may point to the need for changes
in the project in order to reduce its impacts. For
each impact identified in the environmental
impact studies, mitigation and compensation
actions are proposed, which can be developed
before, during and after the implementation of the
projects, as indicated by the basic environmental
plan. During project operation, monitoring can
indicate the need for new actions and investments
in technology and operational processes to reduce
impacts. All actions are developed in accordance
with current Brazilian legislation and analyzed
and monitored by the bodies involved in the
environmental licensing process.
Garden at the Passo São João hydroelectric plant. Eletrobras CGT Eletrosul Collection.
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THREE MAIN ELEMENTS OF THE ENVIRONMENTAL MANAGEMENT SYSTEM
ENVIRONMENTAL POLICY
ENVIRONMENT COMMITTEE
IGS SYSTEM
It guides the treatment of socio-environmental
issues associated with our projects. The
document is in version 4.0, approved by the
Executive Board in March 2019. With a clearer
and more concise wording, the new edition
brings the theme of compliance and incorporates
the guidelines for relations with indigenous
peoples. The review followed Eletrobras’ new
internal rules, ISO 14001 and the alignment with
the precepts of the Global Compact, in order
to encourage sustainable development and
highlight the preventive approach.
Companies must incorporate the principles
and guidelines of the Environmental Policy and
apply them in the operations, development and
offer of new services, products and projects,
in the selection of suppliers, service providers
and contractors, in logistics activities and
in the management of waste, effluents and
atmospheric emissions. The document must also
be recognized by business partners and applied
in due diligence, mergers and acquisitions.
Composed by the managers of the
environmental areas of Eletrobras companies
and, at the technical level, it has specialists
organized in 13 thematic working groups and 1
temporary committee to propose guidelines for
the relationship with indigenous peoples.
Monitoring system of 232 environmental
performance indicators and 360 VARIABLES
with over 700 USERS, subjected to internal
and external checks.
CERTIFICATES
In 2019, Eletrobras companies
maintained ISO 14001 certifications
in the following operations: Tucuruí
Hydroelectric Plant (UHE) and Eletrobras
Eletronorte UHE Coaracy Nunes.
Eletrobras Chesf is ISO 14001 certified
for Paulo Afonso’s substation
maintenance service.
INVESTMENTS
EXTERNAL AUDITS
At Eletrobras Furnas thermoelectric
plants, located in the State of Rio de
Janeiro, external audits must be carried
out to comply with State Law no. 1.898/91
and Guideline 056 R.3. The latter regulates
the performance of environmental audits
and was approved by Conema Resolution
No. 21, of May 7, 2010.
R$ 237.1 MILLION in socio-environmental
investments in 2019.
Visit our website for
more information
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Best Practices Project
Since 2011, the Best Practices Project
brings together initiatives developed by
Eletrobras companies that stand out in the
treatment of socio-environmental issues
and generate benefits for the regions
where the projects are implemented. The
initiatives can be aimed at mitigating and/or
offsetting impacts, or even be voluntary, as
long as they reflect the company’s growing
commitment to sustainability.
Water
GRI 103-1, 103-2, 103-3, 303-1, 303-2 | SDG 6, SDG 12, SDG 14, SDG 15
The use of water by Eletrobras companies is divided into two forms: use by power plants to generate
energy and administrative use. The water used in the hydroelectric plants is returned to the water
bodies with a quality similar to their collection. However, those that operate using the volume of
the reservoir change the amount of water downstream of the dam, respecting the minimum flow
restrictions in times of low inflows and maximum flow, carrying out flood control in order to protect
the valley downstream from natural flooding. They can also operate in such a way as to increase the
availability of flows in periods of natural drought. It is observed that, after some period, the balance
of water volume that passes through the dam adjusts, with the compensation of the highest and
lowest flows, given that the reservoir has maximum and minimum physical limits. Run-of-the-river
hydroelectric plants, in turn, do not store water and do not change the flow produced by nature at
any time.
The hydroelectric plants of the Eletrobras companies are located in all Brazilian regions, with
emphasis on the basins of the São Francisco, Tocantins, Paraná, Paraíba do Sul and Grande rivers,
where the operations with the largest installed capacity are located. It is also worth mentioning the
Xingu River basin, where our companies hold 49.98% of the Belo Monte HPP. Only two assets are
located in an area of water stress incurring hydrological risks: PCH Curemas (Eletrobras Chesf) and
the Batalha hydroelectric plant (Eletrobras Furnas), which represent less than 0.1% of Eletrobras’
installed potential. PHC Pedra, by Eletrobras Chesf, is also located in an area of water stress, however,
it was not considered, according to the terms of Law 12.783/13.
In thermoelectric plants, water is captured from surface sources for cooling and steam generation
and returned to the original water body, where the legal standards of temperature and quality must
be observed, minimizing the impact on ecosystems and habitats. In nuclear power plants, sea water
is used to cool the secondary system and is returned to the sea, with a small increase in temperature.
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GRI 103-2, 103-3
In administrative activities, water is
mostly supplied by the supply network.
Water abstractions for the operations and
administrative uses of Eletrobras companies
requires grants, issued by the competent bodies.
The Water Resources Policy of Eletrobras
companies establishes the basis for the
sustainable and rational use of water in the
company’s business, based on the provisions
of Law 9.433/97 and the following concepts:
water is a public domain asset, a limited natural
resource, endowed with economic value and
essential for the generation of electric energy in
Eletrobras companies.
In the design phase, we elaborate projections of
the consumptive use of water for the concession
period (regulated in 35 years) based on the
guidelines and scenarios of the National Water
Resources Plan (PNRH). The result is assessed
by the National Water Agency (ANA), which
considers the future demand for the use of water
in the basin to issue the grant. The data are
considered when dimensioning the energy to be
generated by the company.
In parallel, we worked together with the
National Electric System Operator (ONS) to plan
the operation of the interconnected system,
defining, under normal conditions, the outflow
to be maintained in the reservoirs in each region
of Brazil. The objective is to optimize the use of
water for energy generation.
In order to monitor our impacts, we maintain the
Water Resources Working Group (GTRH-EE), with
representatives from all Eletrobras companies,
which meet frequently and whenever necessary,
to monitor the topic. Eletrobras companies have
a hydrometric network that records water levels
upstream and downstream, and affluent flows
to their reservoirs, among other parameters.
Annually, the situation of the average monthly
flows of water stress indicators, the quality
and temperature of the water returned to
water bodies is evaluated. To monitor water
use, the IGS Management System (Corporate
Sustainability Indicator System) is used, which
consolidates data from all our units. Locally,
our companies’ operating areas use their own
management systems, such as Sage (Energy
Management System) and ISDARH (Decision
Support Instrument for Water Resources).
Both IGS and Sage were developed by Cepel.
ISDARH, on the other hand, was developed
within the scope of Eletrobras Chesf. We send
the data obtained to ANA and Ibama during the
concession period, as a legal obligation and to
receive feedback on our performance.
136
Tocantins River. Eletrobras Eletronorte Collection.
CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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GRI 103-2, 103-3
Monitoring is in accordance with the ANA/Aneel Joint Resolution No. 03/2010. Measurements of liquid
and solid discharges are carried out at the hydrometric stations and maintenance of these stations
associated with our hydroelectric plants, as well as the maintenance of this equipment. A revision
of the Quota x Area x Volume curves of the reservoirs that are part of the National Interconnected
System (SIN) is also underway. Sections raised upstream from the reservoirs are monitored to check for
changes in the riverbed and its useful volume by sediment transport.
Water as a resource is also the subject of Eletrobras’ Board of Directors through the Strategy,
Governance and Sustainability Committee, which follows the indicators relevant to the 2030 Agenda
(see pages 190 to 203). In addition, at the end of 2019 the Generation Expansion Planning Committee
(Copeg) was established, which also included in its scope the activities of the Water Resources Policy
of Eletrobras Companies and the Water Resources Working Group, having as one of its objectives
the integrated management of the Eletrobras Companies’ Project Portfolio, considering any source
of generation, including hydroelectric generation. Copeg will act in conjunction with other business
committees on the water theme, among others.
For complaints about water management, Eletrobras offers the Environment Contact Us channel.
In addition, during the development of new projects, Eletrobras companies establish channels with
different audiences to clarify doubts and solve problems.
Eletrobras has a goal of reducing administrative water consumption of 0.30% per year, accumulating a
rate of 1.5% by 2022. Check the performance against this goal on page 190.
Financial compensation and royalties
Eletrobras companies pay financial
compensation and royalties (in the
case of Itapu Binacional) for using
water resources to generate energy
in their plants. The National Electric
Energy Agency (Aneel) manages the
collection and distribution of these
resources among the beneficiaries:
states, municipalities and agencies
of the Union’s direct administration.
The values are calculated based on
the energy generation of each year. In
2019, Eletrobras companies paid the
amount of R$ 423.37 million in financial
compensation and approximately R$
1.2 billion in royalties (Itaipu), which
together represent approximately 55%
of the amount paid in Brazil.13
13. Source: Aneel (April 13, 2020).
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Water use by source | GRI 303-3
(thousands of m3)
Administrative activities
Surface
Groundwater
Rainwater
Supply network
2017
3,835.20
3,150.00
205.80
-
479.40
2018
4,087.30
3,146.80
459.40
-
481.10
2019
3,448.26
2,809.23
219.86
0.56
418.62
Thermoelectric generation
3,384,706.90
3,301,929.80
3,798,140.35
Surface
Supply network
Seawater
Hydroelectric generation
Surface
Total water used in 2019
8,604.80
0.10
10.620.50
0.20
14,560.21
0.14
3,376,102.00
3,291,309.10
3,783,580.00
831,648,754.08
835,450,342.69
Total water consumed in 2019 (thousands of m3) | GRI 303-5
419.18
Note:
1. Each Eletrobras company has its own methods of measuring data, which may also vary according to the plants and other facilities. All of them observe the environmental laws and regulations when withdrawing
and disposing of water and monitoring it.
2. The volume of water used from rainwater catchment does not cover all of the company’s operations.
3. The protocols currently in force at Eletrobras companies assume that water consumed includes the water taken from the supply network and rainwater for use in administrative activities, even though it is
possible that part of the surface water has been consumed by the companies.
4. The water used in the Eletrobras Furnas fish breeding stations is counted as surface water, therefore it is not included in the total water consumed .
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Water discharge in 2019 | GRI 303-4
(in m3)
TOTAL VOLUME DISCARDED
835,449,923.51
TOTAL VOLUME DISCARDED BY THE
OPERATIONS OF ELETROBRAS COMPANIES
IN RIVERS WITH WATER STRESS11
59,559,840
Note:
1. Water stress situation (critical or very critical situation) according to the methodology
proposed by the National Water Agency (ANA)..
Commitments and initiatives
GRI 103-2
Considering the relevance of the resource
for our business, we participate in several
initiatives aimed at the development of water
management in the National Water Resources
Management System (Singreh), such as the
National Water Agency (ANA), the Hydrographic
Basin Committees (CBH), the State Water
Resources Councils (CERH) and the National
Water Resources Council (CNRH). In addition, we
participate in forums, work groups and important
events related to the topic.
Eletrobras companies also participate voluntarily
in the Brazilian Business Commitment for Water
Security, launched by the Brazilian Business
Council for Sustainable Development (CEBDS)
in 2018, during the 8th World Water Forum.
The commitment, signed by 20 large Brazilian
business groups, aims to develop solutions for
better management of water resources, with
goals to be achieved by 2025.
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Climate changes
GRI 103-1, 103-2, 103-3 | SDG 1, SDG 2, SDG 3, SDG 7,
SDG 9, SDG 11, SDG 12, SDG 13, SDG 14, SDG 15
Sustainable Development Goal 13 (Action
Against Global Climate Change) was identified
by Eletrobras as one of the most relevant
for the company. Climate change interferes
with rainfall patterns, water availability, wind
incidence and causes an increase in extreme
events that may impact the operations of
Eletrobras companies. For this reason, we
manage our greenhouse gas (GHG) emissions
with a focus on mitigation and actively
contribute to the transition of the Brazilian
energy matrix to an increasingly clean and low
carbon model.
Our Environmental Policy has specific
guidelines for the management of climate
change, which were revised in 2019. In addition,
the Declaration of Commitment on Climate
Change, which can be accessed on the Climate
Strategy page, reinforces our commitment to
the topic. Our actions are also aligned with
the international agreements to which Brazil
is a signatory, such as the Paris Agreement
(COP 21/ 2015). Eletrobras’ Business and
Management Master Plan (PDNG) has targets
for reducing greenhouse gas emission related
to the variable remuneration of managers.
Our companies measure emissions and
constantly monitor their plants, observing the
standards defined by current legislation. Our
emissions inventory follows the methodology
of the Intergovernmental Panel on Climate
Change (IPCC) and the guidelines of the
Greenhouse Gas Protocol (GHG Protocol), a
methodology adopted worldwide for this type
of activity. The monitoring results are analyzed
by environmental agencies responsible for
licensing the projects.
The Management and Sustainability Department
and the Environment area of the Eletrobras
Generation Department are responsible for
managing the theme of climate change, with the
support of professionals from the environmental
areas of Eletrobras companies, external
consultants and agreements with universities
and research centers.
Mauá thermal power plant 3. Eletrobras Amazonas GT Collection.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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GRI 103-1, 103-2, 103-3
The effectiveness of our management is evaluated annually by sustainability
indexes, as part of the Corporate Sustainability Index (ISE) portfolio and
participant in the Dow Jones Sustainability Index (DJSI) and for our reporting
in the Carbon Disclosure Project (CDP). In 2019, we identified the need
to expand the number of categories measured in scope 3, which is being
discussed in the Environment Committee’s Climate Strategy Working Group.
Questions and clarifications are directed to our Contact Us Environment.
studies by the Climate Strategy Working Group on adaptation to climate
change and quantification of CO2 emissions and withdrawals due to land
use activities. In 2019, the Climate Change Adaptation Task Force, in
partnership with the GT on Aquatic Resources and Biodiversity, prepared
a questionnaire to assess the perception of the impacts of climate
change on biodiversity. The results will contribute to the study of
adaptation to climate change based on ecosystems; and
Currently, the following projects related to the theme are being developed:
development of a pilot study for transmission systems under the project
adaptation to climate change, the objective of which is to diagnose risks
and opportunities related to climate change in Eletrobras companies;
estimation of Greenhouse Gas Emissions and Removals due to activities
that cause Land Use Change;
“Improvement of climate services for investments in infrastructure
(CSI),” in a partnership between the German Cooperation Agency (GIZ)
and CGT Eletrosul. The study aimed to cross technical data from two
transmission lines of CGT Eletrosul with climatic variables that impact
structures, creating a “risk matrix” for projects based on current and
future climate data.
development of the Carbon Balance in Reservoirs (Balcar) by Cepel with
the objective of producing references in quantitative assessment of
Greenhouse Gas Emissions in hydroelectric reservoirs;
We carry out the Inventory of Effect Gases annually. The process of
preparing the Inventory of Eletrobras companies can be seen in the figure in
the next page.
development, also by Cepel, of Mudclima, to address three dimensions
related to climate change: research for the use of climatological
information in the construction of scenarios of affluent flows to the
reservoirs; strategies and actions for socio-environmental adaptation to
climate change, one based on ecosystems and the other on
communities; and development of adaptation strategies and actions
aimed at the business of electric energy companies;
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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Eletrobras Companies’ GHG Inventory
GRI 103-2
EMISSION FACTORS
SCOPE 1
SCOPE 2
SCOPE 3
METHODOLOGY
Electricity (MCTI)
Energy content of fuels:
BEN (2015)
IPCC (2006)
MMA (2011)
Direct emissions from
fixed sources (UTEs);
Mobile sources;
Leaking emissions
(SF6 refrigeration);
Sanitary effluents; and
Other fixed sources:
LPG, natural gas,
diesel of generating
groups and auxiliary.
Emissions by
Independent energy
GHG Protocol;
quantity of energy
acquired from
network; and
Transmission losses.
producers (PIEs);
Air trips;
Transport of non-
energy products;
Fuels transport; and
Employees transport.
IPCC (2006); and
Operating control
approach
Gases: CO2 CH4 N2O SF6 PFC HFC
CALCULATION OF GHG EMISSIONS
ELETROBRAS COMPANIES’
ATMOSPHERE STRATEGY
WORKING GROUP
LOSS DATA ON
TRANSMISSION NETWORKS
IGS SYSTEM
COLLECTION AND SUBMISSION OF QUANTITATIVE DATA
ELETROBRAS HOLDING
TRANSMISSION BOARD
COMPANY 1
COMPANY 2
COMPANY 3
COMPANY...
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Scope
Scope 1
Scope 2
Scope 3
Total
In 2019, the total emission of Eletrobras
companies was 5,897,384 tCO2 equivalent. As
expected, emissions accounted for in scope 1
(88.6% of the total), followed by scope 2 (11.2%
of the total) and scope 3 (0.2% of the total).
Considering the emissions accounted for in each
scope, in 2019 there was a reduction of 2.7% in
emissions compared to 2018. For scope 1, the
reduction was 2.3% of emissions, while for scope
2 and 3 it was 1.6% and 74.6%, respectively.
The significant reduction in scope 3 emissions
is related to the non-acquisition of energy from
Independent Energy Producers (PIE), which had
been the most representative source of this
scope in previous years.
SOx and MP10 emissions decreased by around
5% and 53%, respectively, compared to 2018.
NOx emissions increased by 88% over the
previous year.
-2.3
-1.6
-74.6
-2.7
2019
8,769.10
10,816.70
425.22
GHG emissions of Eletrobras companies in 2018 and 2019 | GRI 103-3, 305-1, 305-2, 305-3
(tCO2e)
2018
2019
Variation
2018-2019
Variation
2018-2019 %
5,350,290
5,227,207
- 123,083
670,337
42,813
659,298
10,879
- 11,039
- 31,934
6,063,440
5,897,384
- 166,056
Atmospheric emissions in 2018 and 2019 | GRI 103-3, 305-7
(tCO2e)
Emissões
NOX
SOX
Particulate material (MP10)
2018
4,644.5
11,344.1
907.7
Notes:
1. The sources of atmospheric emissions are stationary, resulting from the combustion process and energy generation by
thermoelectric plants.
2. The measurements of atmospheric emissions meet the applicable laws and regulations and follow the methodologies of the Brazilian
Association of Technical Standards and the company of Environmental Sanitation Technology.
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Eletrobras CGTEE uses the average emission rates
for the twelve months of the year to calculate NOx,
SOx and MP10 emissions and the company went
through a factory shutdown between the months
of December 2018 and March 2019.
The intensity of the emission calculated in
relation to the net generation of energy (MWh)
and also to the net operating revenue (ROL in
R$) allows for a uniform comparison between all
of our generation and transmission companies,
regardless of their size and specificities. The
intensity of emissions from energy generated
and Net Operating Revenue decreased compared
to 2018.
Emission intensity | GRI 103-3, 305-4
(scopes 1, 2 and 3)
BY NET ENERGY
PRODUCED (TCO2/MWH)1
0.040
0.042
Emission intensity | GRI 103-3, 305-4
(scopes 1 e 2 without loss)
BY NET ENERGY
PRODUCED (TCO2/MWH)1
0.036
0.037
CO2
2019
2018
CO2
2019
2018
BY NET OPERATING
REVENUE (TCO2/ROL)2
0.216
0.247
BY NET OPERATING
REVENUE (TCO2/ROL)2
0.192
0.256
Nota:
1. It does not consider the energy generated by SPEs and by the Amazonas D projects.
2. For the calculation of the intensity of emissions, Net Operating Revenue was used without considering the SPEs.
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In 2019, Eletrobras companies consumed 23,704,805 MWh, a reduction of 2% in relation to the previous year. Of this total, 22,004,056 MWh (93%)
corresponded to direct energy consumption and 1,700,748.63 MWh (7%) of indirect energy, with 1,429,743 MWh of self-consumption coming
from generation.
GRI 103-3, 305-5
2018
2019
Energy consumption (MWh)
Scope 1
Scope 2
Scope 3
Scope 1
Scope 2
Scope 3
Consumption of renewable fuels
Consumption of fossil fuels
180,304
22,239,360
-
-
10,911
40,546
138,788
21,963,510
-
-
Electricity consumption
-
1,622,850
-
-
1,677,351
Total
24,192,213
23,704,805
2,396
21,002
-
For more information and detailed data on the gases considered, emission factors, base year, methodologies and assumptions, access the GHG Emissions
Inventory on our website, published annually according to the IPCC methodology (2006) and Greenhouse Gas guidelines Protocol (GHG Protocol - WRI, 2004).
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The Eletrobras System’s Integrated
Energy Efficiency Committee (Cieese)
is made up of representatives of
companies focused on promoting
business energy efficiency through the
development of technological solutions
for all subsidiaries, technical cooperation
and excellence.
Committees and initiatives
GRI 103-2
To monitor and address issues related to climate change that influence business, we have two
committees dedicated to energy efficiency and climate strategy, which have been working on
monitoring, preparing studies and proposing actions on the topic. The Eletrobras System’s Integrated
Energy Efficiency Committee (Cieese) is made up of representatives of companies focused on
promoting business energy efficiency through the development of technological solutions for
all subsidiaries, technical cooperation and excellence. The Climate Strategy Working Group, also
comprised by representatives of companies and an integral part of the Environment Committee
(SCMA), works on developing strategies and proposing goals to reduce GHG emissions, and has task
forces that are developing works on adapting to climate change and quantifying CO2 emissions and
withdrawals due to land use activities.
We are also connected to advances in studies and external initiatives on the subject. Since 2013,
we have adopted an internal carbon price in our intensive businesses on CO2 emissions to assess
the financial impact of a possible tax - which highlights us in the Carbon Disclosure Project (CDP)
- and, since 2017, we adhere to the “Positioning on Carbon Pricing Mechanisms Program” launched
by the Climate Business Initiative. In addition, we signed the “Private Sector Letter of Support to Pricing”
of the Climate Business Initiative with support from the World Bank’s Carbon Pricing Leadership
Coalition (CPLC).
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Biodiversity
GRI 304-2, 304-3 | SDG 14, SDG 15
The most relevant impacts on biodiversity occur during the implementation and operation of the
undertakings and, therefore, for the planning of projects, studies consider the identification of
species and the mapping of habitats, with special attention to rare, endemic and threatened species.
For each identified impact, actions are proposed to avoid, reduce, mitigate, repair and/or compensate
for these impacts, preventing risks, in accordance with the principles and guidelines of Eletrobras’
Environmental Policy.
We consider biodiversity from the planning to the operation of our projects, through the mapping
and assessment of the most relevant impacts, as well as mitigation and compensation actions.
The following is a summary of the main direct, indirect impacts and actions developed by
Eletrobras companies.
Direct impact
Indirect impact
Action
Change in water quality
Macrophyte Proliferation
Water Quality Monitoring Program
Loss of vegetation cover
Forest fragmentation
Degraded Areas Recovery Program
Modification of ecosystems/habitats
Decreased diversity of flora and fauna
Interference with fauna and flora
Change in communities
Support for the creation or
maintenance of Conservation Units
Reforestation, Rescue and Fauna
Monitoring Programs
Interference in ichthyofauna
migratory routes
Interference on migratory routes and
collision with birds
Isolation of populations
Fish transposition mechanism
Reduction of migratory bird populations
Installation of signaling equipment to
prevent collision
Among the actions to protect biodiversity, we
can highlight the collection and production
of seeds and seedlings for reforestation.
Between 2018 and 2019, voluntary seed
production registered a significant increase, as
did voluntary planting of seedlings. Eletrobras
Chesf maintains the Xingó Forest Nursery,
having reached the production of 93.5
thousand seedlings of native Caatinga species
in 2019. The subsidiary donated 76.5 thousand
seedlings to various institutions for planting
on the banks of rivers and streams in the São
Francisco River basin.
Eletrobras Eletronorte has, since 1984, a Forest
Germplasm Bank at the Tucuruí Hydroelectric
Plant, which underwent revitalization and
expansion in the early 2000s. In the bank,
species of flora from the lower Tocantins region
are maintained and monitored, and seeds are
collected for the production of seedlings used
in revegetation, landscaping and recovery of
deforested and degraded areas. In 2019, 1.6 million
seeds of 88 different species were donated.
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Commitments and initiatives
Since 2012, our Environmental Policy has
specific guidelines for biodiversity, aiming to
improve management and include the topic in
the decision-making processes of Eletrobras
companies. Based on compliance with public
policies and international agreements to which
Brazil is a signatory, Eletrobras companies
seek to maintain a systematic and continuous
process of improvement in management
practices, with the help of the IGS system,
a tool that allows for the monitoring of the
environmental performance of companies on
the theme of biodiversity.
Continuous monitoring highlighted the need
to develop studies and research and innovation
projects aimed at conservation. Thus, Eletrobras
defined as a goal “To develop, between 2019
and 2023, annually, a new study/research
project that contributes to the conservation of
biodiversity and ecosystem services.”
The Aquatic Resources and Biodiversity
Working Group, of the Eletrobras Environment
Committee, is developing the “Study on
exposure to risks related to biodiversity
and ecosystem services and strategies for
the management and improvement of the
performance of Eletrobras companies” with
the objective of identifying impacts, priority
resources and dependencies, as well as
assessing risks and opportunities related
to biodiversity and ecosystem services for
Eletrobras. Based on the identification of
water as a priority resource and of greater
dependence for our operations, the GT carried
out, in 2019, the valuation of the “Water
Provision,” through which we quantified the
magnitude of the dependence and the impact
of this ecosystem service on the operation
of Eletrobras companies. This work was
presented at the National Seminar on Electric
Rip tides in Balbina. Eletrobras Eletronorte Collection.
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Energy Production and Transmission -2019,
having been awarded the third place in the
“Environmental Performance Group.”
We also participate in external forums to
address issues related to biodiversity, among
which we highlight the participation in the
Thematic Chamber on Biodiversity and
Biotechnology (CTBio), of the Brazilian Business
Council for Sustainable Development (CEBDS).
In 2019, we joined the Brazilian Business
Commitment to Biodiversity. The document,
released by the Brazilian Business Council for
Sustainable Development (CEBDS), defines
nine goals to be met by 2030 and aims to
emphasize the importance of biodiversity and
ecosystem services for companies, based on
the premise of an action aligned with plans
national and global biodiversity strategic plans.
The Aquatic Resources and Biodiversity working
group actively participated in the drafting
of the commitment, which is in line with the
Biodiversity Guidelines of the Environmental
Policy of Eletrobras companies.
Eletrobras assumed eight of the commitment’s nine goals:
1. Insert the biodiversity theme in the company’s business strategy;
2. Promote and strengthen best practices that favor the rational use of biodiversity resources;
3. Develop and encourage studies, research, technology and innovation projects that contribute to
the conservation of biodiversity and ecosystem services;
4. Know the biological diversity of the company’s areas of activity and, whenever possible, monitor
and measure impacts and dependencies;
5. Make the information collected publicly available, in order to collaborate with the management of
the region’s biodiversity and provide transparency to that information with society;
6. Disseminate knowledge related to biodiversity and ecosystem services within the scope of its
activities and value chain;
7. Enhance conservation and recovery actions in the regions where the company operates, seeking a
positive net impact on biodiversity; and
8. Engage communities located in the company’s operating regions in order to strengthen their
involvement with the conservation of biodiversity and maintenance of ecosystem services.
In addition, the PDNG 2020-2024 is comprised by the Climate Change Mitigation and Environmental
Protection Project, which has actions to offset climate change and protect biodiversity and
ecosystem services in its scope.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
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PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
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ANNEXES
HUMAN CAPITAL
Employee profile, turnover and retention
GRI 102-7, 102-8 | SDG 5, SDG 8, SDG 10
EMPLOYMENT CONTRACT
BY GENDER
Indeterminate
Determined
2,753
12
11,582
22
TOTAL1
14,369
BY REGION
NORTH
Indeterminate 1,569
Determined
0
TOTAL1 1,569
NORTH-EAST
Indeterminate 3,471
Determined
0
TOTAL1 3,471
MIDWEST
Indeterminate 1,464
Determined
2
TOTAL1 1,466
Note:
1. It considers the effective staff, which includes
those with the following ties: its own employees,
employees requisitioned, amnestied/reinstated
in the company and commissioned positions.
It does not include assigned employees,
employees on unpaid leave, amnestied/
reinstated transferred to Government Agencies,
interns and young apprentices.
ABROAD
Indeterminate
Determined
TOTAL1
1
0
1
SOUTH
Indeterminate 2,732
Determined 25
TOTAL1 2,757
SOUTHEAST
Indeterminate 5,098
Determined
7
TOTAL1 5,105
JOB TYPE
Full Time2
Part-Time3
TOTAL
2,633
132
10,227
1,377
14,369
Notes:
2. Full time: the one with a workload of 7h30 or 8h,
according to the schedule practiced by Eletrobras companies.
3. Part-time: the one with a workload of 4h to 6h.
TOTAL
Indeterminate 14,335
Determined
34
TOTAL1 14,369
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
EMPLOYEE DIVERSITY
GRI 405-1
BY GENDER
Governance body
members
Leaderships1
Employees2
84.92%
15.08%
78.35%
21.65%
19.01% 80.99%
BY AGE GROUP
BY MINORITY GROUPS
30 to 50 years old
Above 50 years old
Africa-Americans,
brown, yellow and
indigenous people
Disabled People
30.95%
70.65%
59.43%
69.05%
29.27%
38.47%
0.00%
23.10%
36.76%
0.00%
0.88%
2.67%
Up to 30
years old
0.00%
0.00%
2.10%
Notes:
1.It considers employees in managerial positions of the effective staff (employees, requisitioned, amnestied/reinstated, commissioned positions, assistants and advisors) on the base date of 12/31/2019.
It does not include the President and the Directors, Locality Leaders, Coordinators/Supervisors or other positions outside the formal structure of the company. For Eletrobras Eletronuclear, 86
supervisors and 5 coordinators were considered as managerial positions.
2. It considers the effective staff, which includes those with the following ties: its own employees, employees requisitioned, amnestied/reinstated in the Company and commissioned positions. It does
not include assigned employees, employees on unpaid leave, those amnestied/reinstated transferred to Government Agencies, interns and youg apprentices.
ROTATIVIDADE
GRI 401-1
BY GENDER
BY REGION
North
Northeast
Midwest
Souteast
South
BY AGE GROUP
30 to 50
years old
Up to 30
years old
Above 50
years old
Total admissions
Admission fee
Total disconnections
Turnover rate
35
1.23%
323
11.39%
110
0.93%
1120
9.44%
1
1
25
84
34
10
82
53
0.06%
0.03%
1.56%
1.62%
1.23%
3.61%
0.94%
0.93%
91
668
124
399
161
8
131
1304
5.62%
18.93%
7.75%
7.69%
5.82%
2.89%
1.51%
22.80%
Note: The turnover rate was calculated according to the following formula, standard for Eletrobras companies: (terminated
employees [by gender or region or age group] / number of employees [by gender or region or age group]) x 100.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Maternity leave, return and permanence in employment in 2019
GRI 401-3
PARENTAL LEAVE
Total employees1
who took maternity leave
Total employees who returned
to work after maternity leave
Total employees who returned to work after the end of
maternity leave and were still employed after 12 months
of return (considers leave taken in 2018)
Total employees who returned from maternity leave in
the cycle prior to the report
Total employees who returned to work after the end of
maternity leave in 2019
Total employees who should return to work after
maternity leave in 2019 (considers leave taken in 2018)
98
75
82
119
74
95
367
365
264
367
366
364
RETURN TO WORK RATE2
75.51%
99.73%
RETENTION RATE3
68.91%
71.93%
Notes:
1. It considers the effective staff, which includes those with the
following ties: its own employees, employees requisitioned,
amnestied/reinstated in the Company and commissioned
positions. It does not include assigned employees, employees
on unpaid leave and those amnestied/reinstated transferred to
Government Agencies.
2. Calculated using the formula: (total number of employees
who returned to work after maternity or paternity leave /
total number of employees who should return to work after
maternity or paternity leave) x 100.
3. Calculated using the formula: (total number of employees
retained 12 months after returning to work after maternity or
paternity leave / total number of employees who returned from
maternity or paternity leave in the year prior to that covered by
the report) x 100.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Internship and learning
GRI EU14
Diversity
SDG 5
As a mixed-capital company, we hired our employees through public tenders, as required by the Federal
Constitution, and, therefore, we do not interfere in the diversity profile of the workforce. However, we
reinforce that we do not tolerate prejudices of any kind and that we integrate everyone in the same way,
regardless of gender/sex identity, color/race, ethnicity, age, sexual orientation, social origin, physical or
mental capacity.
We seek to promote an organizational culture of equity and equal opportunities for all, a commitment
that is expressed in our Code of Ethical Conduct and Integrity and Social Responsibility Policy.
To maintain it, we have implemented actions to promote diversity through the Gender and Race
Committees of Eletrobras Companies and since 2004, we have served on the Gender, Race and Diversity
Committee of the Ministry of Mines and Energy and Related Entities (Cogemmev), coordinating and
representing the participation of sector entities.
The Eletrobras Internship Program aims to
prepare interns for the job market, promoting
their personal and professional development
by complementing teaching and learning
in terms of practical training, technical,
cultural, scientific and human relationship
improvement. The trainees are students
of medium-technical and higher level. In
addition to learning with the manager,
supervisor and employees of the area, the
interns have at their disposal the entire
physical and digital collection, technical
publications and periodicals of the Eletrobras
Library, which enhances their training.
We also executed Eletrobras’ Young
Apprentice Program, which trains young
people for their first job through training in
the Administrative Assistant course. The
2019 class carried out the entire theoretical
training at Senai facilities. The practical stage
will take place at Eletrobras’s premises in
2020, where they will be allocated in several
areas according to the profile analyzed and
the interest shown.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
People and professional development management
GRI 103-1, 103-2, 103-3, EU14 | SDG 1, SDG 2, SDG 3, SDG 4, SDG 8, SDG 9, SDG 12
As it is a mixed economy company, submitted to the Ministry of Mines and Energy, Eletrobras’ own staff is
defined by the Federal Government. Thus, we need to comply with the parameters officially established
for the management of the staff. Our way of managing has the main objective to meet the strategic
planning guidelines, following a premise of excellence in people and organizational culture through the
following strategies:
promotion and continuous performance evaluation, guiding career development, focusing on
results and skills;
development and implementation of employee development models, networks and programs and
knowledge management; and
development of stimulating management methods capable of motivating and engaging people.
The bases for this action are in the People Management Policy of Eletrobras Companies, whose
objective is to “guide the standardization of practices and, thus, strengthen a culture based on safe
and adequate conditions for the development, productivity, recognition and retention of people,
contributing to achieve business results.” The document was last reviewed in 2018 and approved by
Eletrobras’ Executive Board and Board of Directors.
Technicians discuss the project. Itaipu Binacional Collection.
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AND ETHICS
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GRI CONTENT
INDEX
SDG MAP
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GRI 103-1, 103-2, 103-3
The document contains principles and guidelines
that are unfolded into business strategy. It is
foreseen in its text to attract, develop, recognize
and retain talents; lead and manage with a
focus on corporate sustainability; promote
safety and well-being for employees in the
company’s internal and external environments;
promote sustainable labor relations; respect
diversity, promoting equity, equal opportunities
and inclusion; preserve ethics and corporate
integrity; and integrate and standardize people
management practices.
There are four main guidelines: people
management planning; career, compensation
and benefits; people development; occupational
safety, health and quality of life; and a health
and supplementary pension plan.
The formation of policies and the planning, execution and monitoring of actions, as well as the
coordination of their adoption by the different Eletrobras companies is a function of the People
Management Superintendence. Employees have a direct channel with the area - institutional
electronic address. The following channels are also available to address specific topics:
Proj-Cipa: e-mail to contact the Internal Commission for the Prevention of Accidents at Work (Cipa);
Proj-Occupational Health: mailbox of the responsibility of the technical occupational health team
(doctors and nurses at work) intended to service Eletrobras employees about demands and general
information about health and quality of life in the work environment, including occupational
medical exams, general guidelines and questions about occupational health and health programs;
Proj-Ergonomics: e-mail to contact the Eletrobras Ergonomics Committee, which establishes
parameters that allow the adaptation of working conditions to the psychophysiological characteristics
of workers, in order to provide maximum comfort, safety and efficient performance; and
Proj-Conflict of Interest: e-mail for consultations and requests for authorization to exercise private
activity that may constitute a conflict of interest.
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STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Consensual Dismissal Plan 2019
GRI 404-2
Started in October and extended until
November, the Consensual Dismissal Plan
(PDC) resulted in the termination of 1,726
people in 2019. The strategic initiative was
linked to the “Operational Excellence” pillar
of the Business and Management Master Plan
(PDNG 2019-2023). The Eletrobras Corporate
Education area promoted lectures for this
audience, to help with career transition and
to deal with the new reality. Topics such
as family economics, financial education,
personal branding, and health and well-being
were addressed. A farewell event was also
held for employees who joined the plan.
A support program was also offered by
Eletros-Saúde, linked to the Eletros Social
Security Foundation.
In 2019, the result of the Organizational Climate Survey applied at the end of 2018 in the nine Eletrobras
companies was released. The survey had a significant number of respondents (8,535 employees), with
83 statements that allowed us to outline the sensitivity in the 14 factors and 4 dimensions presented in
the following figure.
Dimensions and Factors of the 2018 Organizational Climate Survey
GRI 103-3
MOTIVATION
PEOPLE MANAGEMENT
MANAGEMENT PHILOSOPHY
WORKING ENVIRONMENT
Identity
Leadership
Relationship
Interpersonal
Corporative education
Organizational clarity
Working Conditions
Career and Compensation
Communication
Benefits
Recognition
Ethics and integrity
Institutional image
Sustainability and
Human Rights
Occupational health
and safety
THE GENERAL FAVORABILITY INDEX WAS 74.18%
The most favorable factors were related to the benefit portfolio and interpersonal relationships.
The factors that demanded the most attention were corporate education and recognition practices.
Based on the data mapped in the Climate Survey, several actions were outlined such as the review of
the Performance Management System, the process of hiring consultants to update the Career and
Compensation Plan (PCR) and the review of the Corporate Education Plan, among other focused actions.
That same year, the People Management Commission (CGP) was created, which deals with pertinent
matters that require the involvement of the boards.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Corporate education management
GRI 103-1, 103-2, 103-3
Corporate education plays an important role in
increasing the competitiveness and profitability
of Eletrobras companies, as well as in expanding
their business in Brazil and abroad. We must invest
in the development of strategic competencies for
the business, in the preparation and development
of our leadership, in the adoption of modern
management systems or models, and in the
development of a cultural identity, based on
the dissemination of organizational values and
principles. Such claims demand a continuing
education from our professionals.
We promote corporate education actions based
on two pillars: the University of Eletrobras
Companies (Unise) and the associated Corporate
Education Units, corresponding to each of the
companies. These activities follow the Corporate
Education Plan (PEC), elaborated from surveys
carried out by corporate education teams in
the respective companies, interaction with
managers and internal specialists; in addition
to the analysis of the necessary training to face
the challenges provided for in the Business
and Management Master Plan (PDNG) and its
consequences for the entire Eletrobras system.
In 2019, 499 educational initiatives were carried
out by Unise, including those provided for in the
PEC and seminars sponsored by Eletrobras.
Corporate Education should be guided by the following guidelines:
integrated, cooperative and aligned performance of Eletrobras companies;
conception, Structuring and Evaluation of Educational Programs/Actions;
alignment with the Personnel Management Policy of Eletrobras companies;
development of employee skills;
development of organizational culture;
leadership development and training;
valuing the educating 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
compliance with legal requirements related to the training of members of the Executive Board,
Board of Directors and Fiscal Council.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
GRI 103-1, 103-2, 103-3
Among the educational actions of greatest strategic relevance carried out
in 2019, the courses for advisors and directors stand out; the Human Rights
Workshop; the Integrity and Ethical Culture course; the update in NR-10;
the energy commercialization course, basic and practical training in project
management using the Clarity tool; contract management training with
Clarity PPM; the lecture “Your brand, your power: the responsibility of being
who you are”; and training to implement the OBZ Project - Zero Base Budget
(see page 56).
In 2019, we invested substantially in educational actions capable of adding
value to the company in the most diverse fields of knowledge. Regarding
technical issues in the sector, we highlight specific training for transmission
and generation (focused on sources such as solar, wind, nuclear and biogas)
and participation in the main sectoral seminars. We also carry out various
educational actions in the areas of corporate finance, accounting, law,
health management, structured operations, mergers and acquisitions,
risks, tenders, governance, process management, information technology,
auditing, project management, human resources, compliance, bidding and
governance, among others.
We also promote training aimed at training professionals in private pension
plans in the various Eletrobras companies, events on best management
practices for Shared Services Center (CSC), leadership lecture for all
company managers, training for the implementation of the Zero Base
Budget (OBZ) Project, in addition to innovative actions by educating
employees, such as the Integrated GRC course and the use of the Clarity
PPM Tool.
At the end of each activity, the Corporate Education area receives the
Reaction Assessment, in which, in addition to questions in an alternative
format, there is a field for recording suggestions, criticisms and complaints.
The team also receives statements made via the Ombudsman and provides
assistance by phone or e-mail. In 2019, the need for improvements
in educational processes was verified, and a module was implemented
in SAP that allows the integrated management of these processes in all
Eletrobras companies.
Hours of training | GRI 404-1
Total training hours (in thousands)
Average training hours for managerial positions
Average training hours for positions with higher
education
Average training hours for positions without
higher education
Average training hours for men
Average training hours for women
Note: It only considers its own employees.
2018
763.90
65.40
45.50
43.70
49.60
44.70
2019
547.51
156.33
48.53
29.82
48.13
33.06
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Career development
GRI 103-3
The Career and Compensation Plan (PCR) of the Eletrobras companies was created in 2010 to unify
the guidelines and policies for positions, career, remuneration and performance, aligning the policies
and practices of people management with the strategic business drivers to improve organizational
performance, based on competences and focus on results. The purpose is to guarantee equity and
equal treatment regardless of sex, race, color, religion, disability, marital status, sexual orientation,
family status, age or any other condition.
In 2019, the call for bids for specialized consultants was launched to assist Eletrobras in updating
and perfecting the PCR, the Positions Plan, the preparation of job descriptions, and other activities.
Eletrobras companies also worked together to review the methodology and skills of the Performance
Management System. These key people management products will be finalized in 2020.
performance. In this context, we highlight the
performance evaluation interface with the
Corporate Education Plan, Talent and Opportunity
Bank, Succession Plan, Knowledge Management
and career planning. In 2019, the system began its
reformulation with the application scheduled for
the 2020 cycle, contributing to the management
of employees of Eletrobras companies and
channeling efforts in the pursuit of profitability,
sustainability, competitiveness and value
generation objectives.
The Performance Management System integrates with the PCR and presents a clear interface with
the company’s planning. The tool makes it possible to carry out automated planning, monitoring,
evaluation (goals and competences), development and comparison of the achieved and planned
The company’s own employees who received performance evaluation in 2019 by professional
GRI 404-3
BY CATEGORY AND GENDER
Employees in management positions
Employees in positions with higher
education
Employees in positions without higher
education
75%
74%
72%
73%
79%
67%
73%
78%
68%
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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STRATEGY AND VISION
FOR THE FUTURE
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AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Leadership development
GRI EU14
Compensation and benefits
GRI 103-2, 103-3
In 2019, a lecture on the role of leadership;
courses on agile methodologies; and training
on governance, compliance and risks were
offered for leadership development. This
audience also participated in congresses and
technical seminars and courses were also
offered on internal controls, ProERP (SAP) and
human rights, among others.
Our compensation policy follows the same guidelines as the Career and Compensation Plan (PCR)
and the practice of variable compensation for employees follows the Profit or Results Sharing
Program (PLR).
As shown in the table below, the criteria in Groups 1, 2 and 3 for PLR are structured based on goals
for strategic indicators of the Business and Management Master Plan (PDNG), agreed between
Eletrobras and its subsidiaries in the Business Performance Target Contracts (CMDE).
The payment of the PLR is subject to the achievement of adjusted net income of the holding
company (consolidated) in the fiscal year of 2020, which will be calculated based on the indicator
present in the CMDE 2020-2024, as well as the distribution of mandatory dividends and compliance
with Resolution CCE no. 10.
In addition, managers of the organizational units of Eletrobras companies in pending status on
the base date of December 31, 2020, with the Internal Audit are subject to the application of a PLR
discount deflator, as specified in the PLR Term, whose decision of application will take place within
the Boards of Directors of Eletrobras Companies.
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FOR THE FUTURE
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AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
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ANNEXES
GRI 103-2, 103-3
Group
Strategic Guideline
of the PDNG 2020-2024
Indicator
Group 1 – Economic and
financial goal (consolidated)
Financial discipline
Net Profit / Net Worth – Consolidated
Benefits | GRI 401-2
In addition to fixed and variable remuneration,
as well as benefits and advantages determined
by law and/or by virtue of a Collective Bargaining
Agreement, we spontaneously add to our package
other conveniences, including:
Group 2 – Economic and
financial goals (by company)
Operational excellence
Personnel, Materials, Ser-vices and Other Expenses
(PMSO) /Regulatory PMSO
Adjusted EBITDA
transportation vouchers;
education aid;
funeral assistance;
Sustainable performance
Overall score on the Dow Jones Sustainability Index
meal and food allowances;
Group 3 – Operational goals
(by company)
Global performance on the B3 Corporate
Sustainability Index
Operating result/number of employees
Operational excellence
Global Indicator (Genera-tion + Commercialization)
Relative Generation Avail-ability (DISPGR)
Operational Availability of Transmission Lines
(DISP.OLT)
extended maternity and paternity leave;
medical assistance/health insurance and
dental assistance;
group life insurance;
supplementary pension plan and
pension fund;
daycare/preschool assistance;
psychopedagogical assistance to employees
and/or dependents with special needs;
additional by service time;
pharmacy aid;
disease aid;
follow-up license;
language courses; and
caregiver program to reimburse caregiver
expenses for employees or their dependents.
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CAPITAL PERFORMANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Occupational health and safety
GRI 403-1, 403-3, 403-4, EU16 | SDG 3, SDG 8
Among the various activities carried out at Eletrobras companies, risks of specific occupational diseases
were identified, which can be caused, in the plants, by exposure to noise and high temperatures and, in
the field activities in transmission lines, by the overload of the upper limbs.
To mitigate negative impacts and promote the management of occupational health and safety at work,
we operate with a focus on anticipating, recognizing, evaluating and controlling occupational risks
in the workplace and promoting the health of employees, based on current legislation and with the
technical, legal and ethical precepts recommended by official bodies and competent scientific entities.
The actions developed are in line with the guidelines of the People Management Policy, which
determines the continuous maintenance of good working conditions and well-being of employees,
in accordance with the Eletrobras Companies Sustainability Policy. Our companies also have specific
contingency plans and the risks are mitigated by the use of collective and individual protection
equipment. These actions follow the rules and regulations of the Special Secretariat for Social Security
and Labor of the Ministry of Economy, the Fire Department, Civil Defense and environmental entities.
During the Internal Week for the Prevention of Accidents at Work (Sipat) we offer our employees
training in firefighting, first aid, domestic risks, risk perception, sexually transmitted infections (STIs/
HIV/AIDS), among others. In addition, educational videos and reports of a preventive nature and
constant construction of a safe and healthy environment are broadcast.
The actions developed are in line with the
guidelines of the People Management
Policy, which determines the continuous
maintenance of good working
conditions and well-being of employees,
in accordance with the Eletrobras
Companies Sustainability Policy.
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FOR THE FUTURE
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AND ETHICS
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PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
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ANNEXES
Employees who carry out field inspections, an
activity that involves a high-voltage electrical
system, often installed in remote and difficult to
access areas, are required to undergo mandatory
training, since they are subject to a different
degree of risk. The practice is in accordance with
internal rules and the regulatory rules of the
Labor Inspection Secretariat (SIT).
Outsourced employees participate in theoretical
and/or practical training at Eletrobras facilities
or at the contracted company’s facilities. Among
the legal training, there is the work on electricity
and the training of volunteer fire fighters.
Personal protective equipment (PPE) must
comply with Regulatory Standard 6 and have an
Approval Certificate from the Special Secretariat
for Social Security and Labor of the Ministry
of Economy and Inmetro, not only for its own
employees, but also for outsourced employees,
according to contractual clauses. Employees
are also provided with sunscreen, repellents,
life jackets, hats, satellite phones and clothing
appropriate for the field environment.
Indicators in 2019
100%
12%
19%
of the staff represented
by health and safety
committees
health and safety clauses
present in the National
Collective Agreement
of health and safety clauses
present in the Specific Collective
Agreement of Eletrobras
In 2019, we reached a frequency rate of 2.3514 accidents with remoteness per million man-hours
of risk exposure for employees at Eletrobras companies, 18% lower than the rate recorded in 2018
(2.86), but still above the target for 2019 to reduce the frequency rate to 1.33 for employees.
In 2020, aiming to improve safety at work, through the dissemination of a preventive culture to
all professionals who work at Eletrobras companies, we will pursue the 2.48 target of accident
frequency rate with remoteness, including employees and service providers.
14. The frequency rate does not include the company Itaipu.
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AND ETHICS
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Human rights
GRI 103-1, 103-2, 103-3 | SDG 5, SDG 8, SDG 9, SDG 10, SDG 16
Human rights management involves the preservation of the rights of indigenous and traditional
peoples, diversity and equal opportunities, the right to freedom of association and collective
bargaining, non-discrimination and the fight against forced or slave-like labor and child labor. One
of the main objectives, regardless of the specific subject, is to check the level of knowledge of our
employees and partners in order to promote corporate and supply chain awareness, avoiding possible
violations. In addition, we also seek to highlight the positive effects that the measures taken generate
for the company, its workforce and its relationship chain.
In the 2019 cycle, due to demands from senior management and questions made to us, the risk in
Human Rights was prioritized for treatment - with the possibility of a new prioritization for the 2020
cycle. In addition, a project (IGS AS.1) to identify and monitor impacts and develop Human Rights
practices for all stakeholders was included in our Business and Management Master Plan (PDNG
2019-2023), comprising the following indicators and goals:
:
One of the main objectives, regardless
of the specific subject, is to check the
level of knowledge of our employees
and partners in order to promote
corporate and supply chain awareness,
avoiding possible violations
Substation workers. Amazonas GT Collection.
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GRI 103-1, 103-2, 103-3
train 100% of critical human rights employees and suppliers by 2021. Part of this goal is the
inclusion, in the Organizational Climate survey carried out in 2018, of a set of questions to raise the
perception of our employees on the topic;
encourage 100% of critical suppliers to adopt human rights practices and to value and
promote diversity;
assess human rights risks (due diligence) in 100% of critical suppliers by 2021 and 100% of SPEs by
2022 (see pages 204 and 205);
address 100% of human rights violations reports by 2020, and the Audit and Statutory Risks
Committee (CAE) demanded the submission of a proposal to review the flow of human rights
complaints. Compliance with the demand was the responsibility of the Governance, Risks and
Compliance Department (DC), with the support of the Communication Superintendence, the
Ombudsman-General, the Department for the Management and Investigation of Complaints (Caid)
and other relevant areas. The work started in 2019 and will be completed in 2020;
obtain a percentage of women in management positions at least equal to the percentage of women
in companies, a goal that has been achieved since its institution in 2018. We note that, as we are a
mixed-capital company, our employees are hired through public tenders, with 20% of the vacancies
offered being reserved for black candidates and people with disabilities, in compliance with current
legislation; and
continue the Human Rights due diligence process with Special Purpose Entities (SPEs) with the
participation of the Company. The initial stage of this work, an online self-completed questionnaire
sent to all SPEs, had 73% of respondents and allowed us to identify points of improvement in
the practices and commitments of these partners. Thus, we are positioned to plan and carry out
communication, engagement and awareness actions with this audience, aiming to also foster
respect for Human Rights in these links in our chain.
Our indicators are regularly monitored at the
PDNG management meetings and by the
Eletrobras Project Management Office (EGP),
with the results reported in the company’s
corporate indexes and reports.
The guiding principles and guidelines for human
rights management can be found in the Social
Responsibility Policy of Eletrobras Companies,
the Environmental Policy, the Code of Ethical
Conduct and Integrity, the Supply Logistics
Policy for Eletrobras Companies, the Eletrobras
Companies Sustainability Policy and the
Eletrobras Suppliers Conduct Guide.
In order to establish our commitment in this
regard, in 2019 we renewed our adhesion to the
Global Compact at the Participant (paying) level,
which allows us to integrate working groups,
such as human rights, among others. We also
renewed our membership to the Ethos Institute
(paying) in the Essential category, enabling
us to participate in activities promoted by the
organization. It is worth remembering that,
since 2010, we are signatories to the Women’s
Empowerment Principles (WEPs) and we adhere
to the Declaration of Corporate Commitment
in Confronting Sexual Violence against Children
and Adolescents and that, in 2018, we signed the
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GRI 103-1, 103-2, 103-3
Open Business Charter for Human Rights of the
then Ministry of Human Rights. In addition, since
2004, we have served on the Gender, Race and
Diversity Committee of the Ministry of Mines and
Energy and Related Entities (Cogemmev).
Committee, which also handles this type of case. Human Rights issues related to security practices are
dealt with in partnership with Infrastructure and Services (DSCI), which coordinates the management
of the contract and the relationship with the supply of outsourced labor for security. In 2019, the
Reporting Channel received a record of discrimination case, referring to Eletrosul, which is being
evaluated by the responsible bodies. GRI 406-115
The Human Rights Working Group, with
representatives from the areas of Social
Responsibility and other strategic areas of
Eletrobras companies, aims to implement the
actions provided for in the strategic project, the
purpose of which is to develop human rights
practices in all stakeholders provided for in the
PDNG-2019-2023. In addition, it is also up to
the holding company to coordinate the Gender,
Race and Diversity Committee, whose function
is to promote gender equality in Eletrobras
companies and comply with the Federal
Government’s Gender Equality Program.
Regarding the reception of issues related to
discrimination, responsibility is shared between
the Ombudsman-General and the Ethics
Several investments were made related to human rights practices throughout the year:
R$ 50 THOUSAND to promote the Meeting with Suppliers, which included lectures by professors
from the Human Rights and Companies Group of Fundação Getúlio Vargas, for 102 participants;
R$ 28 THOUSAND in support of the 27th Bonecas Negras Community Production Center
(CCP), in Armação dos Búzios (RJ), for the purchase of electrical machinery and supplies for the
empowerment of remaining quilombo women, who make black dolls as a source of income. We
also support and participate in the organization of the Rio 2019 Culture + Diversity Forum and
invite our suppliers to participate as well. The forum brought together corporations and entities
to discuss a more inclusive labor market for women, African Americans, LGBTIs, people with
disabilities and the elderly. At the event, we distributed black dolls produced by CCP to panelists
and participants; and
R$ 34 THOUSAND in sponsorship of the 9th Mulheres em Destaque Forum, promoted by CKZ
Diversidade with support from UN Women and the He For She movement. The forum seeks to
present ways to promote effective transformations within the scope of gender diversity and equity
in corporations.
15. The registered complaints can present more than one type of illegal or unethical conduct, but their classification is given by the most serious, from the point of view of the penalty. Therefore, it is possible that
alleged cases of discrimination - thus understood by the complainants - have been reported in the midst of other complaints and are not specifically covered in the reporting of this indicator. The structure of
the Channel allows the protocols to be classified with only a single type of incident, however, all reported conduct goes through its due verification process, without prejudice to the treatment of all aspects of
the report.
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GRI 103-1, 103-2, 103-3
In 2019, we promoted Human Rights workshops at our subsidiaries Eletrobras Chesf, Eletronorte, Eletrosul and Itaipu. We count on the participation of
employees of the gender committees and of the areas that dialogue with the theme and we use as basis the publication “Promotion of Respect for Diversity
in Companies: Tools Notebook,” produced by Eletrobras in partnership with the NGOs Conexão G and Instituto Promundo.
That same year, our president participated in the CEO Roundtable on Human Rights, organized by the Global Compact Brazil Network. A month later,
Eletrobras hosted the Meeting “Respect for Human Rights in State-owned Companies,” promoted by the Global Compact Brazil Network, by the Center for
Human and Business Rights of Fundação Getulio Vargas and Instituto Ethos. In June 2019, our president was a signatory to the CEO’s Guide on Human Rights,
published by the Business Council for Sustainable Development (Cebds).
Human rights indicators
Base salary and remuneration of men and women | GRI 405-2
Professional category
Base salary amount
Remuneration value
Ratio between base salary for
women and men
Ratio between remuneration
for women and men
Management level - women
Management level - men
Position with higher education - women
Position with higher education - men
Position without higher education - women
Position without higher education - men
14,258.60
16,038.60
11,986.50
12,548.80
7,729.36
7,684.64
26,733.70
29,837.60
14,719.00
15,520.10
10,876.40
10,356.80
0.89
0.96
1.01
0.90
0.95
1.05
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GRI 103-3
Training employees in human rights
policies and procedures | GRI 412-2
Hours of training in human
rights policies or procedures
118,936
Total employees trained in
human rights policies
or procedures
3,827
Investment contracts that have human
rights clauses | GRI 412-3
508
508
Total significant investment
contracts signed in the
reporting period
Total significant investment
contracts that include human
rights clauses
Percentage of employees
trained in human rights
policies or procedures
26.63%
100%
Percentage of significant
investment contracts that
include human rights clauses
Note: these trainings may include courses exclusively dedicated to the topic of Human Rights or a Human Rights module within a more comprehensive training program. As a result, it is worth mentioning that Eletrobras
Chesf and Furnas accounted for mandatory training in occupational health and safety, such as NR10 courses, as they have modules focused on Human Rights.
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INTRODUCTION
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AND ETHICS
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GRI CONTENT
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ANNEXES
GRI CONTENT INDEX
GRI 102-55
For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly
presented and the references for Disclosures 102-40 to 102-49 align with appropriate sections in the
body of the report. The service was performed on the English version of the report*.
Disclosure
Observations
Report page
Omission
GRI 101: FOUNDATION 2016**
GRI 102: GENERAL DISCLOSURES 2016
ORGANIZATIONAL PROFILE
GRI 102-1
Organization name
GRI 102-2
Activities, brands, products and services
GRI 102-3
Location of organization's headquarters
GRI 102-4
Location of organization's operations
Headquarters in Brasília (DF): SCN Quadra 06, Torre “A” – Bloco “A” – 6º andar–
Shopping ID Escritório Central Headquarters in Rio de Janeiro (RJ): Rua da
Quitanda, 196 - Centro
GRI 102-5
Nature of ownership and legal form of the organization
Publicly traded company controlled by the Federal Government.
GRI 102-6
Markets served
GRI 102-7
Scale of the organization
GRI 102-8
Information about employees (its own and third parties)
GRI 102-9
Supply chain
GRI 102-10
Main changes regarding size, structure or shareholding
GRI 102-11
Precautionary principle
GRI 102-12
External initiatives
GRI 102-13
Membership affiliations
Cover
22, 103 , 107
22, 23
22, 104, 107
22, 94, 150
150
49
48, 101, 104
57
72
73
* This text was included in the English version of this Report, to better represent the GRI Materiality Disclosures Service requisites.
** The year 2016 was included in the English version of this Report, to better represent the GRI Materiality Disclosures Service requisites.
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Disclosure
STRATEGY
GRI 102-14
Message from the CEO
GRI 102-15
Description of the main impacts, risks and opportunities
ETHICS AND INTEGRITY
GRI 102-16
Values, principles, standards and rules of conduct
GRI 102-17
Counseling mechanisms and ethics concerns
GOVERNANCE
GRI 102-18
Governance structure
GRI 102-19
Delegation of authority
GRI 102-20
Executive level responsibility for economic, environmental and social issues
GRI 102-21
Consultation of stakeholders on economic, environmental and social issues
Observations
Report page
Omission
Members of governance bodies, employees and business partners receive
training on Eletrobras’ values, principles, standards and rules of conduct. The
documents on these operating premises must be read and signed regularly
by all these stakeholders, whether they already have a relationship with
the Company or are starting it. The Compliance Directorate and the Ethics
Committee are the executive level bodies that deal with values, principles ,
standards and rules of conduct. These documents are available in different
languages for both these audiences and other stakeholders.
Employees, business partners and stakeholders are informed about the
Reporting Channel by the Code of Ethics and Integrity, on the internet and
intranet pages, during the annual event of the Week of Integrity and Ethical
Culture, and during the online training offered by the company.
The duties and powers of the Board of Directors and the Executive Board
of Eletrobras are defined in the Bylaws and in the respective internal
regulations, in line with the duties provided for by law. Eletrobras’ Board
of Directors has three advisory committees: Audit and Risks Committee,
Management, People and Eligibility Committee and Strategy, Governance
and Sustainability Committee, all formed by board members, aiming at
deepening studies on strategic issues that address economic, environmental
and social aspects. The Executive Board is supported by committees and work
groups created on demand for technical deepening of management issues. In
addition, Eletrobras has internal rules that deal with the delegation of powers
to authorize expenses and sign acts and contracts, establishing limits and
delegating powers.
Eletrobras has executive-level positions and functions to address economic,
environmental and social issues and these report to the Board of Directors,
which is the highest corporate governance body of the Company.
As determined by the Access to Information Law (Law No. 12.527 of
05/16/2012), Eletrobras maintains on its website the section “Access
to Information,” with data related to the company’s management for
consultations and requests from public agencies and the society in general.
15
57, 59
86, 88
91
77*
7, 91, 122, 124
* This page reference was included in the English version of this Report to better represent the GRI Materiality Disclosures Service requisites. The page reference for the 102-19 disclosure was excluded for the same reason.
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Disclosure
Observations
Report page
Omission
GRI 102-22
Composition of the highest governance body and its committees
Among the 11 members of the Board of Directors, three are also members of
the Strategy, Governance and Sustainability Committee; three are members
of the Management, People and Eligibility Committee and four are members
of the Statutory Audit and Risk Committee. One of them (Wilson Ferreira
Junior) is also president of Eletrobras.
77, 78, 79, 80, 81
GRI 102-23
President of the highest governance body
The Chairman of the Board of Directors is not an executive officer.
GRI 102-24
Appointment and selection for the highest governance body
GRI 102-25
Conflicts of interest
GRI 102-26
Role of the highest governance body in defining purpose,
values and strategy
GRI 102-27
Knowledge and development of the highest governance body
GRI 102-28
Performance assessment of the highest governance body
GRI 102-29
Identification and management of economic,
environmental and social impacts
GRI 102-30
Effectiveness of risk management processes
The Board of Directors is directly involved in the development of the
Company’s Strategic Planning and its developments and is also responsible
for its approval. The Council also monitors its implementation.
34, 35, 37
82
87
82
83
57, 59
57
GRI 102-31
Assessment of economic, environmental and social issues
34, 35, 37, 57, 59
GRI 102-32
Role of the highest governance body in preparing sustainability reports
GRI 102-33
Communication of critical concerns
GRI 102-34
Nature and total number of critical concerns
GRI 102-35
Remuneration policies
GRI 102-36
Process for determining remuneration
The payment in deferred installments is considered a clawback, since the
payment is suspended or reduced in the event of a reduction in net profit of
more than 20% in relation to the previous year.
There is no participation of compensation consultants in determining the
compensation of Eletrobras’ senior management.
4
91, 122
91
84
84
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Disclosure
Observations
Report page
Omission
The remuneration of the Board of Directors and Fiscal Council, as well as
of the Executive Board, after definition of SEST, is approved at the General
Shareholders’ Meeting, observing the conditions established in the current
legislation regarding the remuneration applied to the Boards (Law 9.292, of
July 12, 1996).
The amounts are disclosed in an aggregated form in the Management Report
published annually, in item 13.2 of the Reference Form, made available to the
Brazilian Securities and Exchange Commission (CVM) and in the Corporate
Management Report of accountability to the Federal Comptroller General
(CGU) , which forwards it to the Federal Audit Court (TCU).
GRI 102-37
Stakeholder involvement in compensation processes
GRI 102-38
Proportion between total annual remuneration
GRI 102-39
Percentage increase in total annual remuneration
STAKEHOLDERS ENGAGEMENT
GRI 102-40
List of stakeholder groups engaged by the organization
GRI 102-41
Collective bargaining agreements
100% of Eletrobras employees are covered by collective bargaining agreements
GRI 102-42
Basis for identification and selection of stakeholders to engage with
GRI 102-43
Approach adopted for stakeholder engagement
GRI 102-44
Main topics and concerns raised with stakeholders
REPORTING PRACTICES
GRI 102-45
Entities included in the consolidated financial statements
GRI 102-46
Definition of the report content and limits of each material theme
GRI 102-47
List of material topics
GRI 102-48
Reformulations of information
Amazonas GT; Cepel; Chesf; CGTEE; Eletronorte; Eletronuclear; Furnas; Itaipu;
holding and Eletropar
The adjustments made to the data from the previous publication are signaled
with the marking of this disclosure* throughout this publication.
84, 95, 105, 106
84
84
6
6
120, 122, 123,
124, 125
9, 10, 122
7
8
* The term “disclosure” is used in the English version of this Report, substituting the term “indicator” in its Portuguese version, to better represent the GRI Materiality Disclosures Service requisites.
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Disclosure
Observations
Report page
Omission
GRI 102-49
Reporting changes
The 2019 Materiality Matrix has 13 themes, compared to 10 themes in
the 2018 matrix. Some of these themes remained, but changed their
nomenclature or were expanded and/or segregated. The following are the
topics that have changed. In the first column are those from the 2018 matrix
and, in the second, those from 2019:
Employee retention and development - People management and
development
Climate change and renewable sources - Climate change / Energy transition
Ethical culture - Corruption and ethics management
Governance and risk - Corporate governance / Risk and crisis management
The following are not part of the 2019 Materiality Matrix: Relationship with
suppliers; Biodiversity; Relationship with communities and Health and safety.
GRI 102-50
Period covered by the report
GRI 102-51
Previous report data
The previous report was published in 2019, referring to 2018.
GRI 102-52
Reporting cycle
Annual
GRI 102-53
Contact details regarding the report
GRI 102-54
"Agreement" option chosen by the organization
GRI 102-55
GRI Standards content summary
GRI 102-56
External verification
This report has been prepared in accordance with the GRI Standards:
Core option.
4
4
213 e 214
5
167
6
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Disclosure
MATERIAL THEMES
Observations
Report page
Omission
MANAGEMENT APPROACH (DISCLOSURES 103-1, 103-2 AND 103-3 APPLY TO ALL MATERIAL TOPICS AND THEIR RESPECTIVE SPECIFIC DISCLOSURES)
GRI 103: MANAGEMENT APPROACH 2016
GRI 103-1
Explanation of material topics and their limits
Research and Development + Innovation
Water
Socio-environmental aspects in decision-making
Digital transformation
Cybersecurity
Risk and crisis management
People development management
Human rights
Climate changes
Energy transition
Corruption and ethics management
Corporate governance
Energy supply
Financial result
Research and Development + Innovation
Water
GRI 103-2
Management approach and its components
Socio-environmental aspects in decision-making
Digital transformation
Cybersecurity
116
135
71
52, 53
54, 55
57
154, 155, 157,
158
164, 165, 166,
167
140, 141
119
86, 88
75
103
93
116
135, 136, 137,
139
71
52, 53
54, 55
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Disclosure
Observations
Report page
Omission
GRI 103-2
Management approach and its components
GRI 103-3
Assessment of the management approach
Risk and crisis management
People development management
Human rights
Climate changes
Energy transition
Corruption and ethics management
Corporate governance
Energy supply
Financial result
Research and Development + Innovation
Water
Socio-environmental aspects in decision-making
Digital transformation
Cybersecurity
Risk and crisis management
People development management
Human rights
Climate changes
Energy transition
Corruption and ethics management
Corporate governance
Energy supply
Financial result
57, 58, 59, 60, 61,
63, 64, 65, 66,
67, 68
154, 155, 157,
158, 160, 161
164, 165, 166,
167
140, 141, 142,
146
119
86, 87, 89, 90, 91
75, 76, 77
103, 104, 107,
108, 110, 112
93
116
135, 136, 137
71, 72
52, 53
54, 55
57, 58, 59, 60, 61,
63, 64, 65, 66,
67, 68
154, 155, 156,
157, 158, 159,
160, 161
164, 165, 166,
167, 168
140, 141, 143,
144, 145
119
86, 88, 89, 90, 91
75, 76
103, 104, 107,
108, 110, 112
93, 94
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Disclosure
ECONOMIC TOPICS
GRI 201: ECONOMIC PERFORMANCE 2016
GRI 201-1
Direct economic value generated and distributed
GRI 201-2
Financial implications and risks due to climate change
GRI 205: ANTI-CORRUPTION 2016
GRI 205-1
Operations assessed for risks related to corruption
GRI 205-2
Communication and training on anti-corruption policies and procedures
GRI 205-3
Confirmed cases of corruption and measures taken
ENVIRONMENTAL TOPICS
GRI 303: WATER AND EFFLUENTS 2018
GRI 303-1
Interactions with water as a shared resource
GRI 303-2
Management of water discharge impacts
GRI 303-3
Water withdrawal
GRI 303-4
Water disposal
GRI 303-5
Water consumption
GRI 305: EMISSIONS 2016
GRI 305-1
Direct Greenhouse Gas (GHG) emissions - SCOPE 1
GRI 305-2
Indirect Greenhouse Gas (GHG) emissions - SCOPE 2
GRI 305-3
Other indirect Greenhouse Gas (GHG) emissions - SCOPE 3
GRI 305-4
Intensity of Greenhouse Gas (GHG) emissions
GRI 305-5
Reduction of Greenhouse Gas (GHG) emissions
GRI 305-7
NOx, SOx and other significant atmospheric emissions
Observations
Report page
Omission
For detailed information, see our Financial Statements at the link: https://
eletrobras.com/en/ri/DemonstracoesFinanceiras/Administration%20
Report%202019.pdf
For 2019, Itaipu Binacional reported the demand from the Plant office and
the Itaipu Technological Site as abstraction of surface water. Surface water
intake from the Bela Vista Biological Refuge (RBV) and industrial activities,
not included, correspond to 271,088 m3.
100
61
50
89
89
135
135
138
139
138
143
143
143
144
145
143
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Disclosure
SOCIAL TOPICS
GRI 401: EMPLOYMENT 2016
GRI 401-1
New employee hires and turnover by age group, gender and region
GRI 404: TRAINING AND EDUCATION 2016
GRI 404-1
Average number of training hours, by functional category and gender
GRI 404-2
Competency management and lifelong learning programs
GRI 404-3
Percentage of employees receiving performance and career
development reviews
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
GRI 405-1
Diversity and equal opportunities
GRI 405-2
Mathematical ratio of salary and remuneration between women and
men, broken down by functional category and relevant operational units
GRI 406: NON-DISCRIMINATION 2016
GRI 406-1
Discrimination incidents and corrective actions taken
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 2016
GRI 407-1
Freedom of association and collective bargaining
GRI 408: CHILD LABOR 2016
GRI 408-1
Operations and suppliers at significant risk of incidents related to child labor
GRI 409: FORCED OR COMPULSORY LABOR 2016
GRI 409-1
Operations and suppliers at significant risk of incidents related to forced
or compulsory labor
GRI 410: SECURITY PRACTICES 2016
GRI 410-1
Security personnel trained in human rights policies or procedures
GRI 411: RIGHTS OF INDIGENOUS PEOPLES 2016
GRI 411-1
Incidents of violations involving the rights of indigenous peoples
Observations
Report page
Omission
151
158
156
159
151
167
166
51
51
51
127
178
Of Eletrobras’s 1,972 security guards, 1,730 are outsourced and 242 are part
of the staff. In 2019, 42% of the total security guards were trained in human
rights policies or procedures, including 821 outsourced employees and 8
from the staff.
GRI CONTENT INDEXANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Disclosure
Observations
Report page
Omission
GRI 412: HUMAN RIGHTS ASSESSMENT 2016
GRI 412-2
Training employees in human rights policies and procedures
GRI 412-3
Significant investments and contracts that include human rights clauses
or that have undergone human rights assessments
GRI 415: PUBLIC POLICY 2016
GRI 415-1
Political contributions
GRI 418: CUSTOMER PRIVACY 2016
In compliance with the legislation, Eletrobras companies do not support or
contribute to political parties or political campaigns of candidates for elective
positions. This guideline is ratified in the Eletrobras Companies Code of Ethics
and Conduct.
GRI 418-1
Proven complaints regarding breaches of privacy and loss of customer data
There are no records of substantiated complaints regarding breaches of
customer privacy in 2019. This disclosure* does not apply to Eletrobras
CGTEE and Eletronuclear, which do not have direct contact with customers.
SECTOR SUPPLEMENT
ORGANIZATIONAL PROFILE
EU1
EU2
EU4
Installed capacity, broken down by primary energy source
and regulatory system
Net energy production, broken down by primary energy source
and regulatory system
Length of overhead and underground transmission
and distribution lines, broken down by regulatory system
AVAILABILITY AND RELIABILITY
EU6
Electricity availability and reliability
RESEARCH AND DEVELOPMENT
EU8
Activities and expenses related to research and development aiming at the
reliability of electricity supply and the promotion of sustainable development
AVAILABILITY AND RELIABILITY
EU10
Planned capacity against projected long-term energy demand, broken
down by energy source and regulatory regime
* The term “disclosure” is used in the English version of this Report, substituting the term “indicator” in its Portuguese version, to better represent the GRI Materiality Disclosures Service requisites.
168
168
22, 104
105
22, 107, 108, 109
109
116
110
179
GRI CONTENT INDEXANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Disclosure
SYSTEM EFFICIENCY
EU11
Average generation efficiency of thermoelectric plants, broken down by
energy source and regulatory system
EU12
Losses in energy transmission and distribution as a percentage of total energy
EMPLOYMENT
EU14
Availability of skilled labor
DISASTER / EMERGENCY PLANNING AND RESPONSE
EU21
ACCESS
EU30
Contingency planning, disaster/emergency management plan and training
programs, and recovery/restoration plans
Average plant availability factor, broken down by energy source and
regulatory system
Observations
Report page
Omission
106
109
153, 154, 160
130
106
Extra GRI disclosures - associated with topics that were not mentioned in the process of determining materiality, but that Eletrobras decided to report to maintain the history and
comparability between cycles
ECONOMIC TOPICS
GRI 204: PROCUREMENT PRACTICES 2016
GRI 204-1
Proportion of expenses with local suppliers in operating units
ENVIRONMENTAL TOPICS
GRI 304: BIODIVERSITY 2016
GRI 304-2
Description of the significant impacts on biodiversity of activities,
products and services in protected areas and areas of high biodiversity
value outside protected areas
GRI 304-3
Protected or restored habitats
SOCIAL TOPICS
GRI 401: EMPLOYMENT 2016
GRI 401-2
Benefits not offered to temporary or part-time employees
GRI 401-3
Return to work and retention after parental leave
49
147
147
161
152
180
GRI CONTENT INDEXANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Disclosure
Observations
Report page
Omission
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2016
GRI 403-1
Percentage of the workforce represented in formal health and safety
committees, comprised by employees from different hierarchical levels,
who help to monitor and guide occupational health and safety programs
GRI 403-3
Employees with high incidence or high risk of illnesses related
to their occupation
GRI 403-4
Health and safety topics covered by formal agreements with unions
GRI 413: LOCAL COMMUNITIES 2016*
GRI 413-1
GRI 413-2
Percentage of operations with local community engagement, impact
assessment and local development programs
Operations with actual and potential negative impacts on local
communities (location and what actual and potential impacts)
SECTOR SUPPLEMENT
EMPLOYMENT
EU16
Health and safety policies and standards for employees and
subcontractors/outsourced employees
LOCAL COMMUNITIES
EU20
EU22
(DMA) Management of processes for displacement and
relocation of communities
Number of people physically or economically displaced and
compensation offered, broken down by type of project
162
162
162
124, 125, 131,
132
124, 133
162
130
130
* This title was included in the English version of this Report to better represent the GRI Materiality Disclosures Service requisites.
181
GRI CONTENT INDEXANNUAL REPORT ELETROBRAS 2019
SDG MAP
182
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SDG MAP
The following map shows the location in the Annual Report of our main contributions for the achievement of the Sustainable Development Goals, considering
the macro and sub-objectives, our activities and their respective value generation. The tags referring to the SDGs were placed next to the contents mentioned
throughout the report and appear in a different color in the case of the prioritized objectives.
Priority SDGs for Eletrobras
Strategy and vision for the future, page 33
Cybersecurity, page 54
Risk, crisis and opportunity management, page 57
Commitments to sustainability, page 69
Financial capital, page 93
Operation and power supply, page 103
P&D and Innovation, page 116
Energy transition, page 119
Climate changes, page 140
Strategy and vision for the future, page 33
Supplier Management/ Monitoring, page 50
Commitment to sustainability, page 69
Financial capital, page 93
Added Value Distribution, page 100
Operation and power supply, page 103
Investments in communities, page 131
Employee profile, turn over and retention, page 150
People management and professional development, page 154
Occupational health and safety, page 162
Human rights, page 164
Strategy and vision for the future, page 33
Information technology management, page 52
Risk, crisis and opportunity management, page 57
Commitments to sustainability, page 69
Financial results, page 94
Manufactured capital, page 103
Intellectual capital, page 116
Climate changes, page 140
People management and professional development, page 154
Human rights, page 164
Cybersecurity, page 54
Risk, crisis and opportunity management, page 57
Commitment to sustainability, page 69
Energy transition, page 119
Climate changes, page 140
Commitment to sustainability, page 69
Corporate governance, page 74
Values, page 86
Commitment to business integrity, page 86
Integrity Program, page 88
Financial results, page 94
Operation and power supply, page 103
Community engagement, page 124
Human rights, page 164
183
SDG MAPANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Other SDGs
Risk, crisis and opportunity management, page 57
Energy transition, page 119
Climate changes, page 140
People management and professional development, page 154
Risk, crisis and opportunity management, page 57
Energy transition, page 119
Climate changes, page 140
People management and professional development, page 154
Risk, crisis and opportunity management, page 57
Operation and power supply, page 103
Energy transition, page 119
Climate changes, page 140
People management and professional development, page 154
Occupational health and safety, page 162
People management and professional development, page 154
Employee profile, turn over and retention, page 150
Human rights, page 164
Water, page 135
Risk, crisis and opportunity management, page 57
Employee profile, turn over and retention, page 150
People management and professional development, page 154
Human rights, page 164
Cybersecurity, page 54
Risk, crisis and opportunity managemens, page 57
Operation and power supply, page 103
Energy transition, page 119
Stakeholder groups and topics of interest, page 6
Climate changes, page 140
Risk, crisis and opportunity management, page 57
Operation and power supply, page 103
Energy transition, page 119
Water, page 135
Climate changes, page 140
People management and professional development, page 154
Risk, crisis and opportunity management, page 57
Energy transition, page 119
Water, page 135
Climate changes, page 140
Risk, crisis and opportunity management, page 57
Energy transition, page 119
Water, page 135
Climate changes, page 140
184
SDG MAPANNUAL REPORT ELETROBRAS 2019 ASSURANCE
185
INTRODUCTION
CORPORATE
PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ASSURANCE
GRI 102-56
A free translation of the original in Portuguese.
Independent auditor’s limited assurance report on
sustainability information in the 2019 Annual Report
To the Board of Directors and Stockholders
Centrais Elétricas Brasileiras S.A. - Eletrobras
Rio de Janeiro - RJ
Introduction
We have been engaged by Centrais Elétricas Brasileiras S.A. – Eletrobras
(“Eletrobras” or “Company”) to present our limited assurance report on the
compilation of the sustainability information in the 2019 Annual Report of
Eletrobras for the year ended December 31, 2019.
Responsibilities of the Company’s management
The Company’s management is responsible for the preparation and fair
presentation of the sustainability information in the 2019 Annual Report,
in accordance with the criteria of the Global Reporting Initiative (GRI-
STANDARDS) and for such internal control as it determines is necessary to
enable the preparation of information free from material misstatement,
whether due to fraud or error.
Independent auditor’s responsibility
Our responsibility is to express a conclusion on the sustainability
information in the 2019 Annual Report based on our limited assurance
engagement carried out in accordance with Technical Communication
CTO 01, “Issuance of an Assurance Report related to Sustainability and
Social Responsibility”, issued by the Federal Accounting Council (CFC),
based on the Brazilian standard NBC TO 3000, “Assurance Engagements
Other than Audit and Review”, also issued by the CFC, which is equivalent
to the international standard ISAE 3000, “Assurance engagements
other than audits or reviews of historical financial information”, issued
by the International Auditing and Assurance Standards Board (IAASB).
Those standards require that we comply with ethical and independence
requirements, and other responsibilities, including in relation to the Brazilian
Standard on Quality Control (NBC PA 01) and, therefore, the maintenance of
a comprehensive quality control system, including documented policies and
procedures for ethical requirements, professional standards and legal and
regulatory requirements.
In addition, those standards require that we plan and perform our
engagement to obtain limited assurance that the sustainability information
in the 2019 Sustainability Report, taken as a whole, is free from material
misstatement.
A limited assurance engagement conducted in accordance with the Brazilian
standard NBC TO 3000 and ISAE 3000 mainly consists of making inquiries
of management and other professionals of the entity involved in the
preparation of the sustainability information, as well as applying analytical
procedures to obtain evidence that enables us to issue a limited assurance
conclusion on the information taken as a whole. A limited assurance
engagement also requires the performance of additional procedures
when the independent auditor becomes aware of matters that lead the
auditor to believe that the information taken as a whole might present
significant misstatements.
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ASSURANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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GRI CONTENT
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SDG MAP
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ANNEXES
The procedures selected are based on our
understanding of the aspects related to
the compilation and presentation of the
sustainability information in the 2019 Annual
Report, other engagement circumstances and
our analysis of the areas in which significant
misstatements might exist. The following
procedures were adopted:
(a) Planning the work, taking into consideration
Companhia Hidro Elétrica do São Francisco –
Chesf; Furnas Centrais Elétricas S.A. – Furnas;
Eletrobras Termonuclear S.A.– Eletronuclear;
Companhia de Geração e Transmissão de
Energia Elétrica do Sul do Brasil – Eletrobras
CGT Eletrosul; Centrais Elétricas do Norte do
Brasil S.A. – Eletronorte; Amazonas Geração
e Transmissão de Energia S.A. – Amazonas
GT and Itaipu Binacional;
the materiality and the volume of
quantitative and qualitative information and
the operating and internal control systems
used to prepare the sustainability information
in the 2019 Annual Report.
(c) Applying analytical procedures to quantitative
information and making inquiries regarding
the qualitative information and its correlation
with the indicators disclosed in the 2019
Annual Report;
(b) Understanding the calculation methodology
(d) Comparing the financial indicators with the
and the procedures adopted for the
compilation of indicators through interviews
with the managers responsible for the
preparation of the information of Eletrobras
- Centrais Elétricas Brasileiras S.A., as well as
the managers responsible for the preparation
of the information of the following
subsidiaries, whose information was
consolidated in the Annual Report of Centrais
Elétricas Brasileiras S.A. and its subsidiaries:
financial statements and/or accounting records.
The limited assurance engagement also included
tests to assess compliance with the guidelines
and criteria of the Global Reporting Initiative
(GRI-Standards) applied in the preparation of the
sustainability information in the 2019 Annual Report.
We believe that the evidence we obtained is
sufficient and appropriate to provide a basis for
our limited assurance conclusion.
Scope and limitations
The procedures applied in a limited assurance
engagement are substantially less detailed
than those applied in a reasonable assurance
engagement, the objective of which is the
issuance of an opinion on the sustainability
information in the 2019 Annual Report.
Consequently, we were unable to obtain
reasonable assurance that we would become
aware of all significant matters that might be
identified in an assurance engagement, the
objective of which is the issue of an opinion. Had
we performed an engagement with the objective
of issuing an opinion, we might have identified
other matters and possible misstatements in the
sustainability information in the 2019 Annual
Report. Therefore, we do not express an opinion
on this information.
Non-financial data is subject to more inherent
limitations than financial data, due to the nature
and diversity of the methods used to determine,
calculate and estimate this data. Qualitative
interpretations of the relevance, materiality, and
accuracy of the data are subject to individual
assumptions and judgments. Furthermore, we
did not carry out any work on data reported for
prior periods, nor future projections and goals.
187
ASSURANCEANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL
PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
The preparation and presentation of the sustainability indicators were performed pursuant to the
criteria of the GRI STANDARDS and, therefore, do not aim to provide assurance with the regard to
the compliance with social, economic, environmental, or engineering laws and regulations. However,
the aforementioned standards establish the presentation and disclosure of possible cases of non-
compliance with such regulations when sanctions or significant fines are applied. Our limited assurance
report should be read and understood in this context, which is inherent to the criteria selected
(GRI-STANDARDS).
Conclusion
Based on the procedures performed, as described herein, no matter has come to our attention that
causes us to believe that the sustainability information in the 2019 Annual Report of Centrais Elétricas
Brasileiras S.A. – Eletrobras has not been compiled, in all material respects, in accordance with the
guidelines of the Global Reporting Initiative (GRI-STANDARDS).
Rio de Janeiro, July 14, 2020
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5
Eliane Kihara
Contadora CRC 1SP212496/O-5
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189
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ANNEX I - CONTRIBUTION TO THE SDGS
Commitment towards the 2030 Agenda
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
Availability of energy
for all, with less risk
of socio-environmental
impact
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Human and Social and
Relationship;
Natural;
Manufactured.
Society;
Government/
Parliamentarians
Regulatory bodies.
Contribution to
a sustainable
development
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG
12; SDG 13; SDG 14,
SDG 15, SDG 16; SDG 17
Social and Relationship,
Financial;
Intellectual;
Human;
Natural;
Manufactured.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Safety and reliability
in operation (Energy
Security)
SDG 9; SDG 11
Social and Relationship;
Manufactured.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Fair price contracting
(sustainable)
SDG 1; SDG 8; SDG 9;
SDG 10
Financial, Social and
Relationship.
Society;
Government/
Parliamentarians
Regulatory bodies;
Customers.
7.1
By 2030, ensure
universal, reliable,
modern and
affordable access to
energy services.
Ensure access
to reliable,
sustainable,
modern and
affordable energy
for all.
R$ 1,679 million paid to the
Federal Government, states and
municipalities for the use of soil
and water resources.
No. of connections of Luz para
Todos: 98,137 calls were made,
accumulating more than 3.5
million calls made since 2004,
which corresponds to 16.8
million people benefited in the
Brazilian rural environment.
Energy generated by Proinfa
ventures: approximately 106.6
million MWh. In 2019, the
program generated 8.9 million
MWh at a cost of R$ 4.05 billion.
Generation Availability:
Eletrobras reached an installed
capacity of 51,143 MW in
generation projects, which
represents 30% of the 172,259
MW installed in Brazil.
Transmission Line Availability:
Eletrobras is responsible for
64,893.64 km, which stands for
45.25% of the total transmission
lines in Brazil on voltage lines
equal to or above 230 kV.
Transformers availability:
Installation of approximately
1.78 million transformers
6.2% reduction in transmission
losses.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
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STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
7.2
By 2030,
substantially
increase the share
of renewable
energies in the
global energy
matrix.
7.3
By 2030, double
the overall rate of
improvement in
energy efficiency.
7.3a
By 2030,
strengthen
international
cooperation to
facilitate access
to clean energy
research and
technologies,
including
renewable energy,
energy efficiency
and advanced
and cleaner fossil
fuel technologies,
and promote
investment
in energy
infrastructure
and clean energy
technologies.
Availability of energy
for all, with less risk of
socio-environmental
impact
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Human and Social and
Relationship;
Natural;
Manufactured.
Society;
Government/
Parliamentarians
Regulatory bodies.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 8; SDG 9; SDG 12;
SDG 13; SDG 17
Social and Relationship;
Financial,
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Research, Development
and Innovation
SDG 8; SDG 9
Intellectual
Society.
Energy conservation
Partnership in Public
Policy Management
SDG 13
SDG 1; SDG 2; SDG 3;
SDG 8; SDG 9; SDG 12;
SDG 13; SDG 17
Intellectual and Natural
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Society;
Government/
Parliamentarians and
Regulatory Bodies.
Research, Development
and Innovation
SDG 1; SDG 7; SDG 8;
SDG 13
Intellectual
Society.
Private Social
Investment
SDG 1; SDG 4; SDG 13
Social and Relationship
Society.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 8; SDG 9; SDG 12;
SDG 13; SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Investment in R&D+I: In 2019,
R$ 237.9 million were invested
in the development of Cepel
projects in contracts for R&D
projects, technological services,
program licensing and testing.
The commitment to clean energy
is materialized through the 96%
of the Eletrobras System matrix.
Energy saved by Procel’s actions:
reduction of approximately
21.6 million megawatt-hours
(MWh), avoiding an emission of
equivalent 1.6 million tCO2.
Investment in Candiota:
Candiota thermoelectric plant,
where R$ 216 million was
released, corresponding to 72%
of the total budgeted in the
Business Plan for this plant.
Investment in R&D + I in
renewable sources: In 2019, R$
237.9 million were invested in the
development of Cepel projects
in contracts for R&D projects,
technological services, program
licensing and testing.
8th edition of the Eletrobras
Companies Sponsorship
program to the Electric Sector
Events, selecting 24 Official
Projects and 9 Alternate Projects
that contribute to cooperation
and scientific and technological
dissemination.
191
Ensure access
to reliable,
sustainable,
modern and
affordable energy
for all.
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
7.3b
By 2030, expand
infrastructure
and modernize
technology to
provide modern
and sustainable
energy services to
all in developing
countries,
particularly in the
least developed
countries,
small island
developing states
and landlocked
developing
countries,
according to their
respective support
programs.
Ensure access
to reliable,
sustainable,
modern and
affordable energy
for all.
Country’s infrastructure
improvement
SDG 17; SDG 9
Social and Relationship;
Manufactured;
Financial.
Society;
Government/
Parliamentarians
Regulatory bodies.
Share in Structuring
Projects
SDG 9
Social and Relationship;
Manufactured.
Government/
Parliamentarians
Regulatory bodies.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 8; SDG 9; SDG 12;
SDG 13; SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Generation Availability:
Eletrobras reached an installed
capacity of 51,143 MW in
generation projects, which
represents 30% of the 172,259
MW installed in Brazil.
Transmission Line Availability:
Eletrobras is responsible for
64,893.64 km, which stands for
45.25% of the total Brazilian
transmission lines on voltage
lines equal to or above 230 kV.
Inventory Studies in
Development; Eletrobras, in
partnership with the Bolivian
state company ENDE, has been
developing, since 2018, actions
by the Communication and
Social Interaction Program
(PCS), within the scope of
the Binational Hydroelectric
Inventory Studies of the Madeira
River, on the border between
Brazil and Bolivia, which will be
completed in 2020.
In December 2019, Eletrobras
had an International Projects
Portfolio composed of eight
projects, maintaining 4.7 GW in
generation projects and 1,500
km in transmission projects.
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FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Commitment towards the 2030 Agenda
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
8.1
Sustain economic
growth per
capita, according
to national
circumstances
and, in particular,
at least an annual
7% GDP growth
in least developed
countries2
8.4
to progressively
improve, by 2030,
the efficiency of
global resources in
consumption and
production, and
strive to decouple
economic growth
from environmental
degradation, in
accordance with
the “Ten-Year
Plan of Programs
on Sustainable
Production and
Consumption”,
with developed
countries taking
the lead.
Promote a
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment and
decent work for all
Invested Capital
Financial Return
SDG 9; SDG 16
Financial
Dividends Distribution
Financial
Contribution to
a sustainable
development
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG 12;
SDG 13; SDG 14, SDG 15,
SDG 16; SDG 17
Social and Relationship,
Financial;
Intellectual.
Human;
Natural;
Manufactured.
Investors, shareholders
and market analysts;
Government/
Parliamentarians and
Regulatory Bodies.
Investors, shareholders
and market analysts;
Government /
Parliamentarians and
Regulatory Bodies.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Net Profit of R$ 10.7 billion in
2019, with a 15% profitability on
the Net Worth (NW).
Increase of more than 50% in the
Market Value from 2018 to 2019.
R$ 1,679 million paid to the
Federal Government, states and
municipalities for the use of soil
and water resources.
Reduction of 48% in Net Debt /
Managerial EBITDA.
Partnership in Public
Policy Management
SDG 7; SDG 9
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
13% reduction of water
consumption from the supply
network for administrative
activities in relation to 2018.
7% reduction in electricity
consumption for use in
administrative units compared
to 2018.
6% reduction in the consumption
of fossil fuels in the ground
vehicle fleet compared to 2018.
193
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
8.5
By 2030, achieve
full and productive
employment and
decent work for all
women and men,
including for young
people and people
with disabilities,
and equal pay for
work of equal value
8.6
By 2020,
substantially
reduce the
proportion of young
people without
jobs, education or
training.
Promote a
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment and
decent work for all
Employment and
Income Generation
SDG 1; SDG 2; SDG 4;
SDG 9; SDG 10
Human;
Social and Relationship.
Workforce and family;
Communities.
Professional Growth /
Training
SDG 1; SDG 2; SDG 4
Human and Intellectual. Workforce and family.
Promoting Diversity
SDG 5; SDG 10; SDG 12
Social and Relationship;
Human;
Manufactured.
Workforce and family;
Society.
Private Social
Investment
SDG 1; SDG 4; SDG 13
Social and Relationship.
Society.
Promoting culture,
sports and events
SDG 3; SDG 4
Social and Relationship.
Society.
14,369 direct employees
Reduction in compensation
inequality. Higher remuneration
is 3.4 times higher than the
average remuneration of other
employees.
Number of training hours: Hours
trained by participation -> 17.32.
100% of Level 1 suppliers
encouraged to adopt practices
that value and promote diversity:
16.6 improvement in 2019,
compared to 2018.
Sponsorship: Total
investments passed on in 2019
R$1,982,695.36
1st Public Notice for Eletrobras
Companies Social Projects, in
which 12 Official Projects and 5
Alternate Projects were selected:
capability projects for vocational
training, insertion in the labor
market, thus contributing to
reduced social inequalities of
groups in a vulnerable situation
194
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
8.7
Take immediate and
effective measures
to eradicate
forced labor, end
modern slavery and
human trafficking
and ensure 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.
8.8
Protect labor rights
and promote safe
and secure work
environments for all
workers, including
migrant workers, in
particular migrant
women, and people
in precarious
employment.
Promote a
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment and
decent work for all
Fostering respect for
human rights
SDG 4; SDG 9; SDG 10;
SDG 12; SDG 16
Social and Relationship;
Manufactured.
Supplier training
SDG 4; SDG 5; SDG 10;
SDG 12; SDG 13; SDG 16
Human;
Social and Relationship;
Manufactured.
Society;
Partners, Sponsored,
Suppliers.
Partners, Sponsored,
Suppliers.
Sustainable supply chain
SDG 5; SDG 8; SDG 10;
SDG 12; SDG 16
Human;
Social and Relationship;
Manufactured;
Financial;
Natural.
Partners, Sponsored,
Suppliers.
Quality of life
SDG 3
Human, Social and
Relationship.
Health and safety
promotion
Supplier training
SDG 3
Human.
SDG 4; SDG 5; SDG 10;
SDG 12; SDG 13; SDG 16
Human;
Social and Relationship;
Manufactured.
Workforce and family.
Workforce and family;
Partners,
Sponsored,
Suppliers.
Partners, Sponsored,
Suppliers.
Sustainable supply chain
SDG 5; SDG 8; SDG 10;
SDG 12; SDG 16
Human;
Social and Relationship;
Manufactured;
Financial;
Natural.
Partners, Sponsored,
Suppliers.
100% of suppliers encouraged
to adopt practices that value
and promote diversity: 16.6
improvement in 2019, compared
to 2018.
Investment in Safety and Quality
of Life/FTE Programs: In 2019,
Eletrobras Companies developed
an integrated action plan focused
on disease prevention, health
promotion and well-being in
the work of their employees,
following the 2019-2023
Business and Management
Master Plan.
18% reduction in accident
frequency rate.
100% of suppliers encouraged
to adopt practices that value
and promote diversity: 16.6
improvement in 2019, compared
to 2018.
195
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Commitment towards the 2030 Agenda
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
9.1
Develop quality,
reliable, sustainable
and robust
infrastructure,
including regional
and cross-border
infrastructure, to
support economic
development and
human well-being,
with a focus on
equitable and
affordable access
for all.
Build resilient
infrastructure,
promote inclusive
and sustainable
industrialization
and foster
innovation
Biodiversity
Conservation
SDG 3; SDG 7; SDG 8;
SDG 11; SDG 13; SDG 14;
SDG 15, SDG 16
Natural;
Manufactured;
Social and Relationship;
Human.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Country’s infrastructure
improvement
SDG 17; SDG 9
Availability of energy
for all, with less risk of
socio-environmental
impact
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Reallocation of
populations
SDG 1; SDG 3; SDG 9;
SDG 11
Social and Relationship;
Manufactured;
Financial.
Human and Social and
Relationship;
Natural;
Manufactured.
Society;
Government/
Parliamentarians
Regulatory bodies.
Society;
Government/
Parliamentarians
Regulatory bodies.
Social and Relationship.
Community.
Share in Structuring
Projects
SDG 7
Social and Relationship;
Manufactured.
Safety and reliability
in operation (Energy
Security)
SDG 7; SDG 11
Social and Relationship;
Manufactured.
Government/
Parliamentarians
Regulatory bodies.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Contribution to
a sustainable
development
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG 12;
SDG 13; SDG 14, SDG 15,
SDG 16; SDG 17
Social and Relationship;
Financial;
Intellectual;
Human;
Natural;
Manufactured.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Expanded Transmission: Line
aggregation in 2019 was 335 km
higher than aggregation in 2018.
Percentage of structuring
projects with Eletrobras share:
The Company is present in the
main structuring projects in the
country, actively participating
in the expansion of the Brazilian
electrical system with a key
role in the construction of the
National Interconnected System,
thus exercising the objectives of
its creation.
Total GHG/ROL Emissions:
Improvement in 2019 of 12.5%
compared to the year 2018.
96% of clean sources in the
Electric Matrix:
6.2% reduction in transmission
losses;
Robustness: 1000MW Charge
Cut (100%), 500MW Charge
Cut (100%), 100MW Charge Cut
(98.3%), any charge cut (96%).
196
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
9.2
Promote inclusive
and sustainable
industrialization
and, by 2030,
significantly
increase
industry’s share in
employment and
gross domestic
product, according
to national
circumstances, and
double its share in
the least developed
countries .
9.4
By 2030, modernize
infrastructure
and rehabilitate
industries to make
them sustainable,
with increased
efficiency in the use
of resources and
greater adoption
of clean and
environmentally
appropriate
industrial
technologies
and processes;
with all countries
acting according
to their respective
capacities.
Biodiversity
Conservation
SDG 13; SDG 14; SDG 15
Natural.
Society.
Employment and
Income Generation
SDG 1; SDG 2; SDG 4;
SDG 9; SDG 10
Human;
Social and Relationship.
Workforce and family;
Communities.
Hiring predictability
SDG 1, SDG 2, SDG 3,
SDG 12; SDG 16
Manufactured;
Social and Relationship.
Partners, Sponsored
Suppliers.
Fostering respect for
human rights
SDG 8; SDG 10; SDG 16
Social and Relationship.
Society.
Country’s infrastructure
improvement
SDG 7
Natural;
Manufactured.
Society.
Private Social
Investment
SDG 1; SDG 4; SDG 13
Social and Relationship.
Society.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 7; SDG 8; SDG 12;
SDG 13; SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Availability of energy
for all, with less risk of
socio-environmental
impact
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Human;
Social and Relationship;
Natural;
Manufactured.
Society;
Government/
Parliamentarians
Regulatory bodies.
Build resilient
infrastructure,
promote inclusive
and sustainable
industrialization
and foster
innovation
R$ 3 billion in acquisitions, 63% of
which from local suppliers.
13% reduction in water
consumption from the supply
network for administrative
activities, compared to 2018.
7% reduction in electricity
consumption for use in
administrative units, compared
to 2018.
6% reduction in the consumption
of fossil fuels in the land vehicle
fleet, compared to 2018.
Emission reduction: reduction
of approximately 21.6 million
megawatt-hours (MWh) (Procel),
avoiding an emission of 1.6
million tCO2 equivalents.
197
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
9.5
Strengthen
scientific research,
improve the
technological
capacities of
industrial sectors
in all countries,
particularly
in developing
countries,
including, by 2030,
encouraging
innovation and
substantially
increasing the
number of research
and development
workers per
million people
and public and
private expenditure
in research and
development.
Build resilient
infrastructure,
promote inclusive
and sustainable
industrialization
and foster
innovation
Research, Development
and Innovation
SDG 1; SDG 7; SDG 8;
SDG 13
Intellectual.
Society.
Private Social
Investment
SDG 1; SDG 4; SDG 13
Social and Relationship.
Society.
Biodiversity
Conservation
SDG 13; SDG 14; SDG 15
Natural.
Society.
Investments in R&D+I / ROL:
In 2019, R$ 237.9 million were
invested in the development
of Cepel projects in contracts
for R&D projects, technological
services, program licensing and
testing/ROL: R$ 27,725.519.
8th edition of the Sponsorship
Program for Eletrobras
companies in the Electric Sector
events, with a selection of 24
Official Projects and 9 Alternate
Projects that contribute to the
scientific and technological
cooperation and disclosure.
198
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Commitment towards the 2030 Agenda
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
Safety and reliability
in operation (Energy
Security)
Availability of energy
for all, with less risk of
socio-environmental
impact
13.1
Reinforcing
resilience and the
ability to adapt
to risks related to
climate and natural
disasters in all
countries.
Contribution to
a sustainable
development
Take urgent
measures to
combat climate
change and its
impacts
SDG 7, SDG 9; SDG 11
Financial, Natural;
Human
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Human and Social and
Relationship; Natural;
Manufactured
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG 12;
SDG 13; SDG 14, SDG 15,
SDG 16; SDG 17
Social and Relationship;
Financial;
Intellectual;
Human;
Natural;
Manufactured.
Brand Valuation and
Reputation;
SDG 16
Social and Relationship.
Society;
Government/
Parliamentarians
Regulatory bodies.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Investors, shareholders
and market analysts;
Government/
Parliamentarians
Regulatory bodies;
Customers;
Partners, Sponsored
Suppliers.
12.5% reduction in the indicator
entitled Total GHG/ROL
Emissions:
96% of clean sources in the
Electrical Matrix;
Maximum score on the Sest
Governance Indicator. Level I
of Excellence.
Investors, shareholders
and market analysts;
Government/
Parliamentarians
Regulatory bodies;
Customers;
Partners, Sponsored,
Suppliers.
199
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
Availability of energy
for all, with less risk of
socio-environmental
impact
SDG 1, SDG 2, SDG 3,
SDG 7; SDG 9; SDG 10;
SDG 13; SDG 14; SDG 15
Human;
Social and Relationship;
Natural;
Manufactured.
Society;
Government/
Parliamentarians
Regulatory bodies.
13.2
Integrate climate
change measures
into national
policies, strategies
and plans.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 7; SDG 8; SDG 9;
SDG 12; SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Energy conservation
SDG 7; SDG 8; SDG9;
SDG 14; SDG 15
Natural;
Manufactured.
Government/
Parliamentarians and
Regulatory Bodies.
Society;
Government,
Parliamentarians and
Regulatory bodies.
Reduction of 12.5% in the Total
GHG/ROL Emissions indicator.
96% of clean sources in the
Electric Matrix: Improvement.
Energy saved by Procel’s actions:
Procel’s final energy saving result
will only be available in April
2020, but the estimate, mainly
through the Procel Seal, is a
reduction of approximately 21.6
million megawatt-hours (MWh),
avoiding an emission of 1.6
million tCO2 equivalents.
Take urgent
measures to
combat climate
change and its
impacts
13.3
Improve education,
increase human
and institutional
awareness and
capacity on global
climate mitigation,
adaptation, impact
reduction, and early
warning of climate
change.
Private Social
Investment
SDG 1; SDG 4; SDG 13
Social and Relationship.
Society.
Promoting culture,
sports and events
SDG 3 and SDG 4; SDG 8,
SDG 9; SDG 13
Social and Relationship.
Society.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3; SDG
7; SDG 8; SDG 9; SDG 12;
SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Private Social Investment Value:
R$ 423.2 million in initiatives on
behalf of the communities which
they relate with.
Supplier training
SDG 4; SDG 5; SDG 8;
SDG 10; SDG 12; SDG 13
Human;
Social and Relationship;
Manufactured.
Partners, Sponsored,
Suppliers.
200
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Commitment towards the 2030 Agenda
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
16.1
Significantly reduce
all forms of violence
and related
mortality rates,
everywhere.
Fostering respect for
human rights
Supplier training
SDG 8; SDG 9; SDG 10
Social and Relationship.
Society
SDG 4; SDG 5; SDG 8;
SDG 10; SDG 12; SDG 13
Human;
Social and Relationship;
Manufactured.
Partners
Sponsored
Suppliers
100% of suppliers encouraged
to adopt practices that value
and promote diversity: 16.6
improvement in 2019, compared
to 2018
Promote peaceful
and inclusive
societies for
sustainable
development,
provide access to
justice for all and
build effective,
accountable
and inclusive
institutions at all
levels
16.5
Substantially
reduce corruption
and bribery in all its
forms.
16.6
Develop effective,
accountable
and transparent
institutions at all
levels.
Ethical, transparent and
equitable relationship
Integrity (ethical,
legal and transparent
conduct)
Social and Relationship.
Human;
Social and Relationship.
Investors, shareholders
and market analysts
Press and Opinion
Makers
Society; Customers;
Partners; Partners
Sponsored
Suppliers
Professional Growth /
Training
SDG 4, SDG 8
Human;
Social and Relationship.
Workforce and family
Supplier training
SDG 4; SDG 5; SDG 8;
SDG 10; SDG 12; SDG 13
Human;
Social and Relationship;
Manufactured.
Partners
Sponsored
Suppliers
Sustainable supply chain
SDG 5; SDG 8; SDG 10;
SDG 12; SDG 16
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 7; SDG 8; SDG 9;
SDG 12; SDG 13; SDG 17
Human;
Social and Relationship;
Manufactured;
Financial;
Natural.
Social and Relationship;
Financial;
Intellectual; Natural;
Manufactured; Human.
Partners
Sponsored
Suppliers
Government/
Parliamentarians and
Regulatory Bodies
Supplier training
SDG 4; SDG 5; SDG 8;
SDG 10; SDG 12; SDG 13
Human;
Social and Relationship;
Manufactured.
Partners
Sponsored
Suppliers
Sustainable supply chain
SDG 5; SDG 8; SDG 10;
SDG 12; SDG 16
Human;
Social and Relationship;
Manufactured;
Financial;
Natural.
Partners
Sponsored
Suppliers
Maximum score on the Sest
Governance Indicator. Level I
of Excellence
63% from local suppliers;
Eletrobras was listed for the
12th time on the Corporate
Sustainability Index (ISE) of Brasil,
Bolsa, Balcão - [B3]. It has also
improved its performance in B3’s
State Governance Outstanding
Program, from 50 to 56 points,
just four below the maximum
score.
201
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
Hiring predictability
SDG 4; SDG 9; SDG 10;
SDG 12
Social and Relationship;
Manufactured.
Partners, Sponsored
Suppliers.
Invested Capital
Financial Return
SDG 8; SDG 9
Financial.
16.6
Develop effective,
accountable
and transparent
institutions at all
levels.
Brand Valuation and
Reputation;
SDG 13
Social and Relationship.
Integrity (ethical,
legal and transparent
conduct)
Social and Relationship.
63% from local suppliers.
Eletrobras was listed for the
12th time on the Corporate
Sustainability Index (ISE) of Brasil,
Bolsa, Balcão - [B3]. It has also
improved its performance
in B3’s State Governance
Outstanding Program, from
50 to 56 points, just four below
the maximum score.
Investors, shareholders
and market analysts;
Government /
Parliamentarians and
Regulatory Bodies.
Investors, shareholders
and market analysts;
Government/
Parliamentarians
Regulatory bodies;
Customers;
Partners, Sponsored,
Suppliers.
Investors, shareholders
and market analysts;
Parliamentarians and
Regulatory Bodies;
Customers;
Partners, Sponsored,
Suppliers.
16.7
Ensure responsive,
inclusive,
participatory and
representative
decision-making at
all levels.
Contribution to
a sustainable
development
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG 12;
SDG 13; SDG 14, SDG 15,
SDG 16; SDG 17
Social and Relationship,
Financial;
Intellectual;
Human;
Natural;
Manufactured.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
Participatory dialogue
SDG 1; SDG 2; SDG 3;
SDG 4; SDG 5; SDG 6;
SDG 7; SDG 8; SDG 9;
SDG 10, SDG 11; SDG 12;
SDG 13; SDG 14, SDG 15,
SDG 16; SDG 17
Social and Relationship,
Financial;
Intellectual;
Human and Natural.
Society, Community;
Government/
Parliamentarians
Regulatory bodies.
22% of management positions
held by women.
202
Promote peaceful
and inclusive
societies for
sustainable
development,
provide access to
justice for all and
build effective,
accountable
and inclusive
institutions at all
levels
ANNEXESANNUAL REPORT ELETROBRAS 2019
INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
SD Goal
Value creation
Related SDGs
Capital Impacted
Stakeholders
Main results 2019
16.10
Ensure public
access to
information
and protect
fundamental
freedoms, in
accordance with
national legislation
and international
agreements.
Promote peaceful
and inclusive
societies for
sustainable
development,
provide access to
justice for all and
build effective,
accountable
and inclusive
institutions at all
levels
Ethical, transparent and
equitable relationship
Social and Relationship.
Investors, shareholders
and market analysts
Press and Opinion
Makers.
Partnership in Public
Policy Management
SDG 1; SDG 2; SDG 3;
SDG 7; SDG 8; SDG 9;
SDG 12; SDG 13; SDG 17
Social and Relationship;
Financial;
Intellectual;
Natural;
Manufactured;
Human.
Government/
Parliamentarians and
Regulatory Bodies.
Satisfaction Rate - Ombudsman:
In 2019, there was a 56% drop
in the number of complaints
received by Eletrobras
Companies, from 10,427 in 2018
to 4,542 in 2019.
In 2019, a total of 683 requests
for information were received
by the SIC (Citizen Information
Service) and all were answered
within the year.
Among Eletrobras Companies,
the Holding was the one that
received the most requests
through e-SIC, 205 in total with
an average response time of
9.08 days.
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INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
ANNEX II – PDNG 2020-2024 GOALS
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
Relative Generation
Availability - DISPGR
Index
0.923
0.995
1.060
1.000
1.000
Goal achieved
Operational Availability
of Transmission Lines –
DISPOLT
Global Indicator
(Generation +
Marketing)
%
99.92
99.90% 99.95%
99.82%
99.82%
Goal achieved
Index
ND
1.04
1.01
0.95
1.00
Goal achieved.
Employee Satisfaction
Index
71.10
74.18
74.18
72.76
73.10
Goal achieved
2020 Goals -
Initiatives underway
Preventive actions in order to
meet the generation availability
determined by the regulatory
agency.
Conducting preventive
maintenance, seeking efficiency
in the transmission business.
The goals 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.
Project under development,
aiming to make the
management of energy
marketing more effective,
by promoting transparency,
integration and improvement
of the work flow between
Eletrobras companies.
Implementation of Sustainability
4.0 Programs and Human Capital
Leverage Project.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
Accident Frequency
Rate with remoteness
Number of
accidents per
million hours
of exposure
to risk
2.22
2.86
2.35
1.33
2.48
Goal not achieved. There is
an increase in the number of
records, related to greater
awareness and; the increase in
hours of exposure to risk, due
to the increase in the number
of facilities in the production
system (plants, substations and
transmission lines).
2020 Goals -
Initiatives underway
Occupational Health and Safety
Program, with actions aimed
at preventing occupational
diseases and accidents
at Eletrobras companies,
considering employees and
contractors. Until 2019, the goal
of this indicator was only related
to own employees. The 2020
goal includes employees and
third parties.
Project Management
Maturity Index
GHG emissions from
own UTEs for net
energy generated
(tCO2e/MWh)
GHG emissions from
own UTEs for net
energy generated
(tCO2e/MWh)
GHG emissions from
the use of fossil fuels in
the vehicle fleet
Index
ND
2.33
2.89
2.49
NA
Goal achieved.
%
0.76
0.67
0.62
0.66
0.61
%
0.76
0.67
0.62
0.66
0.61
We reduced GHG emissions from
own UTEs by 8% for net energy
generated (tCO2e/MWh).
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
We reduced GHG emissions from
own UTEs by 8% for net energy
generated (tCO2e/MWh).
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
tCO2e
12,285
12,141
11,374
12,105
11,340
We reduced our GHG emissions
by 6.3% due to the use of fossil
fuels in our vehicle fleet.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
%
99.68% 99.66% 99.77%
99.40%
99.40%
Goal achieved.
2020 Goals -
Initiatives underway
Conducting preventive
maintenance, seeking efficiency
in the transmission business.
%
ND
90%
80%
80%
100%
Goal achieved.
Consolidation of the Eletrobras
companies integrity program.
Operational Availability
of Transformers -
DISPOTR
Suppliers exposed to
the risk of fraud and
corruption aware of the
Eletrobras companies’
Compliance Program
Management positions
held by women
%
21.0%
21.1%
21.7%
21.0%
21.0%
Goal achieved.
Continue the Eletrobras Gender
Equity Program. Maintain our
commitment towards gender
equity and respect for human
rights, as well as the UN Women’s
Empowerment Principles.
Wage Difference
(Remuneration)
times
ND
ND
3.4
Achieve the
amount of up to
10x by 2020.
NA
Goal achieved.
Reduction of electricity
consumption for
administrative activity
from the public
distribution network
(MWh)
%
5.9%
3.4%
7.0%
0.2%
0.2%
Goal achieved. The reduction in
the number of employees and
vacancy in real estate favored
the achievement of the goal for
this indicator.
Implementation of Sustainability
4.0 Programs and Climate
Change Mitigation and
Environmental Protection
Project.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
2020 Goals -
Initiatives underway
Reduced consumption
of fossil fuels in the
ground vehicle fleet (GJ)
The reduced
consumption of
water from the
supply network in the
administrative activity
Level 1 suppliers
encouraged to adopt
practices that value and
promote diversity
Level 2 Suppliers
Evaluated on
Sustainability Risk
Due Diligence in
Human Rights of
Critical Suppliers
%
5.1%
1.1%
6.4%
0.2%
0.2%
%
11.1%
-0.4%
13.0%
0.3%
0.3%
%
ND
83.40%
100%
60%
80%
Goal achieved. Better fleet
management and reduction in
the number of vehicles helped to
achieve the goal.
Implementation of Sustainability
4.0 Programs and Climate
Change Mitigation and
Environmental Protection
Project.
Goal achieved. The reduced
number of employees and
vacancy in real estate helped
achieve the goal.
Implementation of Sustainability
4.0 Programs and Climate
Change Mitigation and
Environmental Protection
Project.
Goal achieved. Online training
and insertion of clauses in
suppliers’ contracts helped
achieve the goal.
Implementation of Sustainability
4.0 Programs and Sustainable
Supplier Management Project.
%
ND
ND
0%
5%
25%
Goal not achieved.
Implementation of Sustainability
4.0 Programs and Sustainable
Supplier Management Project
%
ND
ND
5.4
Evaluate, by
2021, 100% of
Critical Suppliers
in Human Rights
Risks
Evaluate, by
2021, 100% of
Critical Suppliers
in Human Rights
Risks
We are on our way to attain our
goal by 2021. The consolidated
result for 2019 (5.4%)
demonstrates the challenge
we will face to achieve our
commitment.
Implementation of Sustainability
4.0 Programs and Project
Engagement of Stakeholders
in the Value Chain to raise
awareness on the subject of
Human Rights.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
2020 Goals -
Initiatives underway
Due Diligence in
Human Rights of joint
ventures/SPEs
%
ND
ND
73.2
Evaluate, by
2022, 100% of
Joint-Ventures
in Human Rights
Risks
Evaluate, by
2022, 100% of
Joint-Ventures
in Human Rights
Risks
We are on our way to attain our
goal by 2021. The consolidated
result for 2019 (73.2%)
demonstrates the challenge
we will face to achieve our
commitment.
Implementation of Sustainability
4.0 Programs and Project
Engagement of Stakeholders
in the Value Chain to raise
awareness on the subject of
Human Rights.
Level 1 Suppliers
Trained in Human
Rights%
%
ND
ND
4.7
Train, by 2021,
100% of Level
1 Suppliers in
Human Rights
Train, by 2021,
100% of Level
1 Suppliers in
Human Rights
We are on our way to attain our
goal by 2021. The consolidated
result for 2019 (4.7%)
demonstrates the challenge
we will face to achieve our
commitment.
Implementation of Sustainability
4.0 Programs and Project
Engagement of Stakeholders
in the Value Chain to raise
awareness on the subject of
Human Rights.
Employees Trained in
Diversity and Human
Rights
Share of clean energy
sources (solar, wind,
hydraulic, nuclear)
in the company’s
electrical matrix
Investment in R&D+I/
ROL
%
ND
ND
26.6
Train, by 2021,
100% of
Employees in
Diversity and
Human Rights
Train, by 2021,
100% of
Employees in
Diversity and
Human Rights
We are on our way to attain our
goal by 2021. The consolidated
result for 2019 (26.63%)
demonstrates the challenge
we will face to achieve our
commitment.
Implementation of Sustainability
4.0 Programs and Project
Engagement of Stakeholders
in the Value Chain to raise
awareness on the subject of
Human Rights.
%
94.8%
95.2%
96.0%
94.6%
94.6%
Goal achieved.
%
0.8%
1.4%
1.2%
1.0%
1.0%
Goal achieved.
Maintain the contribution to the
expansion of the Brazilian electric
system through clean and/or
renewable sources.
Implementation of Sustainability
4.0 Programs and Project Synergy
with Industry 4.0.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
Total GHG/Rol
Emissions
tCO2e/(R$ k)
0.295
0.247
0.213
0.181
0.173
The 0.216 tCO2e/result (R$
k) did not reach the goal of
0.181 tCO2e/(R$ k). Despite the
reduction in GHG emissions, the
consolidated amount of ROL
was below expectations due to
the accounting adjustments to
transmission revenue.
Scope 1 emissions
Thousands of
tCO2e
Adjusted Scope 2
GHG emissions
Thousands of
tCO2e
ND
5,350
5,227
5,297
5,175
Goal achieved.
ND
9.489*
8.579*
8.580*
8.494*
Goal achieved.
2020 Goals -
Initiatives underway
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Expansion of the
Scope 3 Sources of
GHG Emissions
Category
5
5
5
Include 2 new
sources in the
GHG emissions
inventory by the
year 2023
Include 2 new
sources in the
GHG emissions
inventory by the
year 2023
We maintained, for 2019,
the same scope of sources of
greenhouse gas emissions from
Scope 3.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Total NOX Emissions
(t/year)
8,052
4,645
8,769
24,821
24,821
Goal achieved.
Total SOX Emissions
(t/year)
15,722
11,344
10,817
27,127
27,127
Goal achieved.
Total PM Emissions
(t/year)
1,565
908
425
4,229
4,229
Goal achieved.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
* The numbers for this indicator have been adjusted in the English version of this report, with a corrected unit of measurement. In the Portuguese version, they were presented in TCO2e.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
2020 Goals -
Initiatives underway
Fugitive SF6 emissions
(tCO2e)
18,494
32,576
34,941
157,371
157,371
We increased our total SF6
emissions by 7.3%, yet we remain
well below the reference value,
considering the characteristics of
our plants and the requirements
of the current environmental
legislation.
Implementation of Sustainability
4.0 Programs and Energy
Transition Project.
Outsourced Accident
Frequency Rate with
remoteness
Number of
accidents per
million hours
of exposure
to risk
3.54
2.32
ND
Reduce the
Accident
Frequency Rate
with remoteness
of Outsourced
workers in
relation to the
previous year
-
It started to be informed together
with the accident frequency rate
of own employees.
Occupational Health and Safety
Program, with actions aimed at
preventing occupational diseases
and accidents at Eletrobras
companies, considering
employees and contractors.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
Energy Saved by Procel
Actions
Billion kWh/
year
21.2
23.0
21.6
25.7
27.7
Goal not achieved.
2020 Goals -
Initiatives underway
Eletrobras has been investing
in actions to combat waste and
energy efficiency at Procel. The
energy results obtained by the
program’s actions contribute
to the efficiency of goods and
services, also allowing the
postponement of investments
in the electricity sector, thus
reducing environmental impacts.
Thus, the indicator proves to
be adequate for monitoring the
contribution to the achievement
of SDG 7, target 7.3, being the
main indicator of performance
evaluation for the National
Electricity Conservation Program
(Procel).
SDG Alignment
Indicator
Index
ND
ND
ND
NA
1.0
New indicator, agreed upon from
PDNG 20-24.
Implementation of Sustainability
4.0 Programs and Sustainable
Action Project/2030 Agenda.
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ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
Scorecard - main indicators
Indicator Name
Unit
History
Goal
2017
2018
2019
2019
2020
Result analysis 2019
Compliance with Audit
Requests
%
ND
ND
ND
NA
100%
New indicator, agreed upon from
PDNG 20-24.
2020 Goals -
Initiatives underway
Indicator inserted in the variable
compensation programs of
managers and directors, in order
to increase the engagement
in meeting the requests of
the internal audit, with the
consequent improvement of
processes.
Training Hours/Number
of employees
hours
ND
ND
ND
NA
50
New indicator, agreed upon from
PDNG 20-24.
Implementation of Sustainability
4.0 Programs and the Human
Capital Leverage Project.
Energy Saved in
Eletrobras Corporate
Buildings
% kWh/year
saved
ND
ND
ND
NA
5.28
New indicator, agreed upon from
PDNG 20-24.
Implementation of Sustainability
4.0 Programs and the Energy
Transition Project.
212
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
CREDITS
GRI 102-53
Eletrobras – Centrais Elétricas Brasileiras S.A. offers several channels of
contact with stakeholders.
Central Office
Rua da Quitanda, 196 – Centro
Rio de Janeiro/RJ – CEP: 20091-005
General phone number: (21) 2514-5151
Contact Us – Eletrobras Website > Contact Us
Website – www.eletrobras.com
Facebook – www.facebook.com/Eletrobras
YouTube – www.youtube.com/user/SistemaEletrobras
Twitter – @Eletrobras
Instagram - @eletrobrasoficial
LinkedIn – www.linkedin.com/company/eletrobras
Ombudsman
Rua da Quitanda, 196 – 4º andar
Centro - Rio de Janeiro/RJ – CEP: 20091-005
Phone number: (21) 2514-4526/5895
www.eletrobras.com/ouvidoria
ouvidoria@eletrobras.com
Responsible: Thatiana Martins dos Santos Silva
President of the ethics committee: Andrea Costa Amâncio Negrão
Reporting Channel
www. eletrobras.com/canaldedenuncias
Branches
Eletrobras maintains multinational offices:
Cone Sul (Montevideo - Uruguay)
Av. Luis Alberto de Herrera 1.248 Torre 2, oficina 311, CP – 11.300
Relationship with Investors (RI)
Phone number.: (21) 2514-6331 ou (21) 2514-6333
Fax: (21) 2514-5964
Website – www.eletrobras.com.br/elb/ri
Contact RI – invest@eletrobras.com
Ombudsman RI - ombudsman-ri@eletrobras.com
Branches
Eletrobras maintains multinational offices:
Cone Sul (Montevideo - Uruguay)
Av. Luis Alberto de Herrera 1.248 Torre 2, oficina 311, CP – 11.300
Depositary Institution and Stock Portfolio Manager
Eletrobras
Banco Bradesco S.A.65
Shares and Custody Department
Phone number: (11) 3684-9441
Fax: (11) 3684-3811
If you have questions about technical terms presented throughout this
publication, access the Eletrobras Electric Energy Dictionary, available at:
Eletrobras>Eletrobras News Agency>Institutional Communication
Channel for communication about this publication: GRI 102-53
sustentabilidade@eletrobras.com
213
ANNEXESANNUAL REPORT ELETROBRAS 2019 INTRODUCTION
CORPORATE PROFILE
STRATEGY AND VISION
FOR THE FUTURE
CORPORATE GOVERNANCE
AND ETHICS
CAPITAL PERFORMANCE
GRI CONTENT
INDEX
SDG MAP
ASSURANCE
ANNEXES
This Annual Report is the result of the efforts of the Eletrobras team. We
thank everyone for their participation and commitment.
General-Coordination
Management and Sustainability Board
Editorial Core
Eletrobras Communication and Institutional Relations and Sustainable Vision
Nucleus of Sustainability Disclosures* and Report Assurance
Eletrobras Companies Executive Sustainability Committee
Data Collection and Management
IGS Report System
Coordination of GRI disclosures* collection, consulting, writing and translation
Visão Sustentável
Graphic design, diagramming, infographics and illustrations
Visão Sustentável
We would like to thank the professionals of Eletrobras companies who
provided the necessary information for the preparation of the 2019 Annual
Report and all interested parties who participated in our research on the
relevant topics and substantially contributed to this work.
* The term “disclosures” is used in the English version of this Report, substituting the term “indicators”
in its Portuguese version, to better represent the GRI Materiality Disclosures Service requisites.
Chapters Opening Photos
Cover- Trampoline panorama of the spillway. Itaipu Binacional /
Caio Coronel Collection; and Wind Complex. Eletrobras Chesf.
Table of contents – page 2
Transmission line maintenance. Eletrobras CGT Eletrosul Collection
Chapter 1 – page 3
Itumbiara hydroelectric plant. Eletrobras Furnas / A. C. Júnior Collection.
Chapter 2 – page 21
Tucuruí hydroelectric plant. Eletrobras Eletronorte Collection.
Chapter 3 – page 33
Cerro Chato Wind Plant. Eletrobras CGT Eletrosul / Hermínio Nunes Collection.
Chapter 4 – page 74
Load dispatch room of the Itaipu hydroelectric plant. Itaipu
Binational / Alexandre Marchetti Collection.
Chapter 5 – page 92
Fish farming station. Eletrobras Chesf.
Chapter 6 – page 169
Group in playful activity, compliance game, during the Week of
Ethical Culture at Eletrobras. Eletrobras holding / Cláudio Ribeiro collection
Chapter 7 – page 181
Active volunteer. Eletrobras holding / Cláudio Ribeiro collection.
Chapter 8 – page 185
Dam of the Itaipu hydroelectric plant. Itaipu Binational /
Alexandre Marchetti collection.
Chapter 9 – page 189
Mauá thermal power plant 3. Eletrobras Amazonas GT / Alessandro Nunes
collection
214
ANNEXESANNUAL REPORT ELETROBRAS 2019 215