Eletrobras
Annual Report 2020
Contents
Introduction
Message from management
2020 at a glance
2020 Overview
About this Report
Our EESG journey
69
70
77
85
94
96
PROSPERITY
Financial performance
Operating performance
R&D and Innovation
Supplier management
Social Value Creation
GOVERNANCE
About Eletrobras
Presence in Brazil and Latin America
The Eletrobras Identity
Embedding sustainability in governance
Recognition
Integrity Program
Ethics
Risk management
Strategic Planning
99
100
114
115
125
127
134
138
PEOPLE
Our employees
Stakeholder engagement
Human Rights
PLANET
Water
Climate Change
Biodiversity
3
4
7
9
11
19
21
23
25
32
38
44
46
50
52
61
ELETROBRAS
ANNUAL REPORT 2020
Cover image: The Sobradinho Dam. Photo by: André Schuler.
144
GRI CONTENT INDEX
164
ASSURANCE REPORT
166
APPENDIXES
184
CREDITS
3
Introduction
We are pleased to present our An-
nual Report 2020, an account of our
achievements and performance in the
year and our policies, strategies, direc-
tion and commitment to ESG (environ-
mental, social and governance).
We welcome any questions or feedback
on this Report.
Please write to
sustentabilidade@eletrobras.com
GRI 102-53
The Xingó Dam. Chesf Archives
MESSAGEELETROBRAS I ANNUAL REPORT 2020EESG JOURNEYGOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTAPPENDIXES 4
Message from
Management
GRI 102-14
In such an aberrant year as 2020, the
important role of reliable electricity
in the response to the coronavirus
pandemic increased stakeholders’
awareness of how essential Eletrobras’s
services are.
We faced the biggest operational
challenge in our history. At the onset
of the crisis, we immediately made
the unprecedented decision to assign
75% of our employees to work from
home, while the rest of our workforce
continued to work at our plants,
substations and operation centers
across Brazil under stringent health and
safety protocols.
The successful transition was made
possible by an extensive restructuring
process in recent years across the
Eletrobras Group, in which we
modernized our governance structure,
invested in operations automation,
and implemented a single-instance
SAP ERP system at all Eletrobras Group
companies. The pandemic tested our
resilience, and these measures proved
successful. Through them, we were
able to remotely operate 399 facilities
– including plants, substations and
operation centers – from 183 main and
backup sites.
The safety protocols we implemented
aimed to maintain the reliability
and availability of our generation
and transmission assets at or higher
than pre-pandemic levels. We also
supported society at such a critical
time by delivering the best we have to
offer: the energy that Brazil needs to
function and develop. At the height of
the pandemic, we supplied as much as
40%* of Brazil’s generation capacity.
As our operations crews continued
to work on the front lines to ensure
a continued, reliable supply of
electricity, Eletrobras Group’s
executive directors set up a Crisis
Committee that met on a daily basis to
assess developments, establish safety
protocols, and take the measures
necessary to guarantee operational
continuity. This Committee has also
monitored employee health and
provided support to their families.
As we navigated the severe crisis in
2020, Eletrobras made important
progress across different business
fronts. We launched a Cultural
Transformation program – one of the
most important programs in our recent
history – to build a corporate culture
based on creativity, collaboration,
innovation and sustainability, and a
meritocratic, high performance work
environment in which employees’
talents and accomplishments are
recognized and rewarded. Following
a baseline survey to determine the
current state of Group companies’
organizational culture, based on
the perspectives and suggestions of
employees, we will lay the groundwork
over the next few months for a major
transformation to build the Eletrobras
Brazilians want: a modern, dynamic and
meritocratic organization.
*Referring to the period from 3/10/2020 to 8/25/2020,
during which Eletrobras accounted for 40% of the
generation capacity of the National Grid at peak.
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXES 5
In 2020 we made continued progress
in our investiments optimization. We
completed the sale of SPEs Mangue
Seco 2, Centroeste, MTE, Santa Vitória
do Palmar and Complexo Campos
Neutrais. Several SPEs were sold, wound
up and merged in 2020, reducing
the number of SPEs we have a stake
in from 136 to 94. We also approved
the acquisition of minority interests in
and the merger of 12 other SPEs into
subsidiaries Furnas (Transenergia Goiás)
and Chesf (11 projects within the Pindaí
I, II and III wind farm clusters), further
reducing the number of SPEs we hold to
82 in early 2021.
Elvira Presta. Eletrobras Archives
Ruy Schneider. Eletrobras Archives
We completed a project to
achieve compliance with
Brazil’s new General Data
Protection Act (LGPD) at
Group companies
In addition, we completed the merger
of two subsidiaries in the South:
Eletrosul and CGTEE. The project was
launched in 2017 and incorporated into
Eletrobras’s Business and Management
Master Plan (PDNG), with a focus on
achieving corporate synergies across
regional subsidiaries. The company
resulting from the merger, CGT
Eletrosul, is a fully integrated operation
focused on Brazil’s south, benefiting
from greater operational efficiency,
process improvement and optimized
performance.
Restructuring also progressed
on the organizational front, with
changes aiming to integrate the
holding company’s and subsidiaries’
organizational structures. Internally,
we completed a project to achieve
compliance with Brazil’s newly
introduced General Data Protection
Act (LGPD) at Group companies,
and published a new version of the
Eletrobras Code of Ethical Code and
Integrity, which we then disseminated
through extensive employee
communications and training.
In the Transmission segment, the
year was marked by Eletrobras’s
participation in energy auctions for
the first time in six years. The holding
company led the participation of
three subsidiaries in the auctions,
with stringent financial discipline. A
particularly significant milestone in
the year was the successful completion
of the rate-setting reviews for
transmission concessions extended
under Law no. 12 783/2013. The
rate-setting review results were
incorporated into the Permitted
Annual Revenue (RAP) for the 2020-
2021 rate-setting cycle, adjusted and
remunerated by the real Cost of Equity
(Ke) for the transmission segment as
established by the Brazilian power
sector regulator, ANEEL. Under
MME Ordinance 120/2016, the
current cycle’s rate-setting review
also included the portion of Ke
remuneration not incorporated from
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXES 6
We would like to express
our solidarity with the
families of Brazilians who
have lost their lives, and
honor the memory of the
colleagues we have lost to
the pandemic
the date of concession extension to
the tariff review. This portion had been
excluded by ANEEL from the tariffs
in 2017 under injunctions that were
repealed in 2020.
In the Generation segment, we
resumed construction of the Angra
III nuclear power plant, with a budget
allocation of R$ 3.5 billion for a
Critical Path Acceleration Plan under
which the works will be completed
by 2026. Provisional Measure 988,
which has passed both the House
and the Senate, outlines the pricing
conditions for a new 40-year electricity
reserve contract that will ensure the
sustainability of the project as well as
rate affordability.
A restructuring of our electricity
trading business model will deliver
further improvements over the coming
years. In innovation, we became a
founding member of the Center for
the Fourth Industrial Revolution (C4IR)
Brazil, a public-private partnership
among the World Economic Forum,
the Brazilian Federal Government,
the São Paulo State Government and
industry. C4IR is the first center of
its kind in Brazil and will be focused
on artificial intelligence, machine
learning, the Internet of Things,
urban transformation and data
policy. The goal of the center is to
promote the adoption of innovative
technologies through scalable public
policies that can help to make Brazil’s
companies and the broader economy
more competitive, productive and
sustainable.
Eletrobras is proud of the initiatives
we have pursued as a signatory
of the Global Compact and the
recognition they have earned from
the market, including an upgraded
score in the Carbon Disclosure Project
(A-) and Dow Jones Sustainability
Index, and a Second Party Opinion
to issue green bonds, all of which
attest to our commitment to
sustainable development. Another
highlight of the year was the launch
of our EESG Journey, a dedicated
section on the Eletrobras website
featuring consolidated indicators on
environmental, social and governance
performance. The new space will
increase visibility around these
issues and underline the importance
we attach to them in our business
strategy. 2020 was an unprecedented
year for society – and with all our
efforts and important achievements
in the year, we felt compelled to do
even more. Eletrobras Companies
contributed R$ 23.7 million as part of
the COVID-19 response to hospitals
in the National Healthcare System
(SUS) across Brazil, in partnership with
the Brazilian Development Bank’s
(BNDES) “Saving Lives” program.
We organized campaigns to donate
equipment and PPE, grocery packs,
personal hygiene kits, COVID-19
tests and masks to socially vulnerable
families and communities surrounding
our operations. The campaigns were
informed by a survey that mapped
out our strategic assets and the
stakeholders they interact with. In
2021, we donated 100 large, 1.000 m³
oxygen cylinders to Manaus.
We would like to thank all our
employees for the dedication,
determination and competence that
have made Eletrobras the company it
is today. We would also like to express
our solidarity with the families of
Brazilians who have lost their lives, and
honor the memory of the colleagues
we have lost to the pandemic. And
lastly, we wish to extend our thanks
to our shareholders, partners and
other stakeholders for your trust
and recognition of the efforts and
achievements described in this report.
Elvira Baracuhy Cavalcanti Presta
CEO (interim)
Ruy Flaks Schneider
Chairman of the Board of Directors
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXES 2020 at a glance
Amid the COVID-19 pandemic,
Eletrobras Companies donated
approximately R$ 24 million to
support the emergency response
(page 10).
From 2018 to 2020, we generated
more than R$ 30 billion in net income
Eletrobras recorded a ratio of
Net Debt to EBITDA of 1.5 times
We posted a return on equity of 8.7%
7
We paid dividends of R$ 2.6 billion in
the year and R$ 2.3 billion in January
2021 (interim dividends)
In 2020, we launched a corporate
nominations management system to
more efficiently assess the profiles
of candidates to our more than 500
Board of Directors and Executive
Board Positions across Group
companies (page 28).
We optimized the number of Special-
Purpose Entities (SPEs) held by
Eletrobras, generating proceeds of
approximately R$ 900 million* (page 67).
* Including approximately R$ 896 million in connection
with a competitive procedure in 2019 – of which the
first and second installments were paid in 2020 – and
approximately R$ 43 million in connection with an
auction in 2018, of which the second installment was
paid in 2020.
MESSAGEELETROBRAS I ANNUAL REPORT 2020EESG JOURNEYGOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTAPPENDIXES Eletrobras received a Second Party Opinion
(SPO) in 2020 to issue green bonds to
finance wind and solar farm projects.
The SPO was issued by Vigeo Eiris
following an assessment on ESG aspects.
We ranked 1st place in the electric power
and gas sector in emerging markets.
We completed a corporate reorganization
that created Companhia de Geração e
Transmissão de Energia Elétrica do Sul do
Brasil (CGT Eletrosul), a public generation and
transmission company resulting from a merger
of two Eletrobras subsidiaries in the South:
Eletrosul and CGTEE. (page 70)
We launched our EESG Journey,
providing an overview of our Economic,
Environmental, Social and Governance
performance. We implemented a structure of
four pillars – Prosperity, Planet, People and
Governance – broken down into 12 key drivers,
based on a framework launched by the World
Economic Forum in September 2020.
8
We committed to offset 100% of our
holding company’s Greenhouse Gas
(GHG) emissions from 2021
For the fifth consecutive year, we
linked executive directors variable
compensation to a set of ESG targets,
including targets on climate change,
energy efficiency, health and safety,
research and development, supplier
due diligence, and gender equity.
We invested more than
R$ 472 million in
Technology and
Innovation, including more
than 100 research projects in areas
such as: Operation, supervisory,
control and protection of electric
power systems, and alternative energy
sources.
MESSAGEELETROBRAS I ANNUAL REPORT 2020EESG JOURNEYGOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTAPPENDIXES 9
Brazilian power sector. The initiative
provided loans to fund distributors’
payments to generation companies
for contract power. Another factor
that positively affected our financial
performance in the year was the rate-
setting review by ANEEL. (Read more in
Financial performance, on page 70)
In closing, we would be remiss not to
mention and honor the memory of the
15 employees we lost to COVID-19.
2020 Overview
The novel coronavirus pandemic set the
tone for 2020 and directly affected the
positive and negative impacts on the
businesses, processes and operations of
Eletrobras Group companies.
Structural preparations made in
advance ensured were able to respond
promptly as soon as the pandemic
reached Brazil. We immediately set up a
crisis committee with CEOs of all Group
companies and all executive officers
of the holding company. Alongside
the crisis committee, we created three
monitoring and action groups for:
operations, electricity trading and
management infrastructure. These
groups helped to accelerate important
integration processes, develop
operation protocols and implement
strategies for protecting our employees,
maintaining our management
infrastructure, and engaging in
corporate social responsibility initiatives.
Eletrobras made approximately R$ 24
million in donations in support of health
and prevention initiatives as part of the
COVID-19 response.
We demonstrated strong resilience
in maintaining our generation and
transmission operations across Brazil
throughout the global pandemic
crisis. Approximately 75% of our
employees were assigned to work
from home within a short space of
time, while successfully maintaining
all operation, governance and
management systems fully operational.
We made shared purchases to supply
all Group companies with the hand
sanitizers and personal protective
equipment needed to maintain our
operations. Eletrobras partnered with
other Brazilian companies to import
COVID-19 test kits for our direct and
third-party employees. Meanwhile, we
implemented protocols to protect the
health and safety of the employees
working on-site. At year-end, more
than half our substations were being
remotely operated and supervised. We
continued to fulfill our commitment to
generating, transmitting and selling the
electricity that Brazil needs.
In the macroeconomic environment,
interest rates dipped steeply to a
historical low, while the Brazilian
real weakened sharply in the year.
Eletrobras was not significantly
affected, as most of the Group’s debt
is denominated in local currency. In
January 2020 we renegotiated our
foreign-denominated debt to reduce
interest rates and lengthen maturities.
The Special Purpose Entities (SPEs)
in which we have an interest were
benefited by a temporary, six-month
suspension of interest collection by the
Brazilian Development Bank (BNDES),
positively affecting Group companies’
cash flows.
Inflation remained within the
target under our plan, although
accelerating at the end of the year.
Our performance in the period was
also positively affected by a Ministry
of Mining and Energy program, called
Conta-Covid, that aimed to dilute rate
adjustments for consumers while
providing relief for distributors in the
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEANNEXESEESG JOURNEY 10
THE ELETROBRAS GROUP’S
PANDEMIC RESPONSE
EMPLOYEES, CONTRACTORS AND THEIR FAMILIES
Up to
75%
of employees
working from home
399
facilities monitored by
our Crisis Committee
76,820
COVID-19 tests
administered
90.8%
of employees
tested
230
Monitoring
Bulletins
PSYCHOSOCIAL
COUNSELING
ONLINE
WORKOUTS
ONLINE
TRAINING
JOBS
PRESERVED
OPERATION
Implemented health
protocols and
administered rapid tests
Former employees*
Online instructions
on Health &
Retirement Plans
Suppliers
Flexible contracts
and prevention
protocols
*Terminated in 2019
1,820
INFECTED
WITH COVID-19
15
DEATHS
FROM COVID-19
DONATIONS
Around
R$ 24 million*
IN TOTAL DONATIONS
Purchased supplies and PPE for
health professionals at 109
National Healthcare System
hospitals in 102 municipalities,
through the "Salvando Vidas"
(Saving Lives) campaign in
partnership with BNDES
Indigenous communities
2,519 grocery kits
1,200 bottles of mineral water
2,000 masks
internet access
Quilombola communities
200 grocery kits
As of: 12/31/2020
RESILIENCE
Business continuity
Sustained operations
and electricity supply
Coming through stronger
Technology adoption and
governance enhancements
Higher productivity
Leadership united; employees
and families safe
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEANNEXESEESG JOURNEY About this report
GRI 102-49, 102-50
The information in this report is for the period from January 1 to
December 31, 2020, describing the economic, social, environmental
and governance aspects that are most material to the sustainability
of our business.
11
For ease of reading and comprehension,
the following are signposted by icons
throughout this Report:
*The capitals proposed by the International
Integrated Reporting Council (IIRC) are the set
of resources and capabilities through which an
organization creates value. The six capitals are:
• material topics
• GRI disclosures
• (Integrated Reporting) capitals*
• SDGs**
**Sustainable Development Goals
SDG
7
8
9
13
16
Natural capital
natural resources
Financial capital
financial resources
Manufactured capital
the buildings, equipment
an infrastructure used
by the business
Human capital
the skills and competencies
of people in the organization
Social and relationship capital
relationships within
and outside the company
Intellectual capital
knowledge created
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT Responsibilities
and approval GRI 102-32
The Board of Directors, with support from the
Strategy, Governance & Sustainability Committee,
is responsible for ensuring the integrity of this
report. A dedicated team of specialists from our
Group companies developed the report and the
Board, following a review of the report, found that
it provides a fair and balanced representation of
matters that have or could have a material effect on
our ability to create value.
The topics in the report are structured around
the Eletrobras Value Creation Model (see page
34) beginning with the context surrounding our
operations, then continuing through our business
profile and operations, and our strategy, corporate
governance structure and approach to managing
risks and opportunities – which span across and
underpin our different businesses – and ending
with our performance across each capital (financial,
manufactured, intellectual, social and relationship,
natural, and human).
We invite our stakeholders to review our report
and provide feedback on our performance and on
the disclosures describing our approach to value
creation.
Ruy Flaks Schneider
Chairman of the Board of Directors
Integrated methodology
In 2020, we worked to increase
transparency around our report and
its focus on issues that matter most
to our business and stakeholders.
We emphasized the most material
impacts and ESG topics, but without
neglecting to connect them to the “E”
for economic. That is why in many of
our documents and on our website we
instead use the term EESG.
The goal in adopting the EESG model
is to incorporate international and
industry best practices and standards
on sustainability reporting, including
the following:
12
• This report has been prepared in
accordance with the GRI Standards –Core
option GRI 102-54
• the integrated reporting framework of
the International Integrated Reporting
Council (IIRC)
• industry-specific material disclosures
published by the Sustainability Accounting
Standards Board (SASB)
• the recommendations of the Task Force
on Climate-related Financial Disclosures
(TCFD), newly adopted in 2020
• the Sustainable Development Goals
(SDGs)
• the United Nations (UN) Global Compact
principles
Other sources of guidance used
in developing the 2020 Eletrobras
Annual Report include the “Annual and
Sustainability Reporting Guidelines
for Electric Utilities”, published by
the Brazilian power sector regulator,
ANEEL, and “Annual reports: a guide
on integrated reporting”, published by
the Federal Audit Court (TCU). Through
the report, we are holding ourselves
accountable both to the appropriate
authorities and to society.
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT 13
SDG
16
Our stakeholders
GRI 102-42
Our stakeholders are at the core of
Eletrobras Group’s value creation model and
play an important role in the development
of our Materiality Matrix. Eletrobras’s
stakeholders include:
• employees/their families
• investors/shareholders/market analysts
• communities
• society
• the media/opinion makers
• partners/sponsors/suppliers
• governments/congress/regulators
• customers
Eletrobras Group’s approach to
identifying and selecting the
stakeholders we engage with is guided
by our Strategic Plan and aligned with
our Value Creation Model, the Eletrobras
Group Code of Business Conduct and
Ethics, and other Group policies.
An operator at the Angra nuclear power plant. Eletronuclear Archives
strategic plan and Group commitment
to sustainable development, and
should support sound communications
and engagement with stakeholders.
This policy, which in its third edition
incorporated requirements on
accessibility, was approved in May
2019 by the Board of Directors, and
is supplemented by the Eletrobras
Group Spokesperson Policy, which was
introduced in 2018 and updated in
November 2020.
our efforts to improve stakeholder
engagement and integrate
communications across Eletrobras
Group companies. The committee was
established in 2018, bringing together
the heads of Communications at all
Group companies. GRI 102-44
The topics deemed most material
by media stakeholders in 2020 were
related to institutional, financial and
people management matters.
Under the Eletrobras Group Stakeholder
Communications and Engagement Policy,
stakeholder selection is guided by our
The Eletrobras Group Integrated
Communications Committee held
eight meetings in 2020 as part of
SDG
16
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT 14
Preliminary results show that emotional
perceptions are stronger the closer the
stakeholder group is to the company;
our contribution to the country’s
development and to the quality of power
supply is recognized across the board;
and interactions with Eletrobras are
perceived as creating a positive impact
on touch points.
In the next step in the project, in 2021,
workshops will be held with strategic
functions to build action plans in order
to improve engagement with each
stakeholder group by addressing gaps
and opportunities for improvement
identified in the survey.
Sample design
Planned/Actual
Online
Neighboring communities
Telephone
Eletrobras Group employees
Online
Opinion makers
Telephone
Approach
Method
Eletrobras
Quanti
Quanti
Quanti
Quali
618/600
750/750
3,853/Best-effort
40/40
Eletrobras Archives
Reputation survey
Within our commitment to actively
listening to and engaging with
stakeholders, we conducted the 2020
Eletrobras Reputation Survey as a
corporate initiative under our Business
and Management Master Plan (PDNG)
2020-2024, in line with the future
vision articulated in the plan. The
survey methodology included both
the emotional and rational aspects of
reputation.
Amid the COVID-19 pandemic, we
reformulated the survey questionnaire
to include a set of questions specifically
about the pandemic, eliciting
respondents’ views about Eletrobras’s
coronavirus response.
The survey measured Eletrobras Group’s
reputation among four stakeholder
groups: society, communities, opinion
makers and internal stakeholders.
When conducting the survey in the
field, the required sample size for each
stakeholder group was fully met. The
response rate among employees was
27% – consistent with the standard rates
for internal surveys (25%-30% response
rate).
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT DEFINING MATERIALITY
GRI 102-46, 102-1, 102-4
ELETROBRAS GROUP MATERIALITY MATRIX 2020 GRI 102-47
15
In 2020, due to the COVID-19 pandemic,
the Board of Directors of the holding
company decided to supplement the 13
material topics with an additional three
common topics spanning all subsidiaries:
health, safety and well-being; supplier
relations; and community relations.
Y
G
The new materiality matrix, which was
E
T
A
developed in accordance with the Global
R
T
S
Reporting Initiative (GRI) Standards – Core
N
O
option and the International Integrated
T
C
Reporting Framework, was resubmitted
A
P
to all Board members for final validation. I
M
The contents of our annual report were
informed by a materiality assessment
led by the holding company with the
participation of all Eletrobras Group
companies. The materiality exercise
comprised the following steps:
stakeholder survey and interviews;
materiality workshop; calibration of the
topics not prioritized in the workshop;
and assessment of the topics deemed
most material by stakeholders for
alignment with business strategy. In this
step, the list was narrowed to 12 topics
that were then submitted to the Board
of Directors of the holding company
for review. Board members chose to
include one additional topic: corporate
governance. The materiality exercise was
completed in 2019. GRI 102-21
SDG
16
Material topics
I
L
A
C
T
R
C
I
H
G
H
I
I
M
U
D
E
M
W
O
L
IMPACT ON STAKEHOLDERS
LOW
MEDIUM
HIGH
CRITICAL
15
7
3
5
1
8
10
11
4
9
12
2
14
6
16
13
1. Research and development + Innovation
2. Supplier relations*
3. Water
4. Embedding social and environmental
issues in decision-making
5. Cybersecurity and digital transformation
6. Human rights
7. Risk and crisis management
8. People management and development
9. Climate change
10. Energy transition
11. Anti-corruption and ethics management
12. Corporate governance
13. Community relations*
14. Power supply
15. Financial results
16. Health, safety and well-being*
*Topics included in 2020
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT
MATERIAL TOPIC BOUNDARIES GRI 102-46, 103-1
The boundaries of the topics in the materiality matrix denote where the impacts from our operations occur, what stakeholders are affected, and what capitals in our value
creation model they relate to, based on the International Integrated Reporting Framework. The chart below describes the stages in the materiality assessment.
16
CAPITALS
Intellectual
Financial
Natural
Human
Social and
relationship
Manufactured
Where it occurs
SDG
Capitals
Linkage to other
frameworks
Stakeholders
Material topic
GRI 102-44, 102-46
Research &
Development +
Innovation
Supplier relations
Within the organization
7 8 9
Within and outside the
organization
8 10 16
Water*
Outside the organization
6 12 13 14
Embedding social and
environmental issues in
decision-making
Within and outside the
organization
7 8 9 13 16
Cybersecurity
Within and outside the
organization
7 8 9 11 13
Digital transformation Within the organization
9
Human Rights
Within and outside the
organization
8 9 10 16
* This topic is not material to Eletropar
**Dow Jones Sustainability Index
***ISE – Corporate Sustainability Index (B3)
Not related to an IR
capital, but to governance,
which spans across
and underpins all value
creation activities
TCU
TCU
DJSI**
ISE***
SASB
DJSI
ISE
TCU
SASB
DJSI
ISE
DJSI
SASB
ISE
TCU
TCU
DJSI
ISE
Customers, Suppliers,
Government,
Investors and Society
Suppliers
Communities,
Government, Society
Consumers, Suppliers,
Government,
Investors and Society
All
Employees, Suppliers
Employees,
Communities,
Suppliers,
Government, Society
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT
Risk and crisis
management
Within the organization
3 7 9 10 13 14 15
People management and
development
Within the organization
3 4 8 9 10 12
Climate change*
Outside the organization
3 7 8 9 11 12 13 14 15
Energy transition*
Within the organization
3 7 8 9 11 12 13 14 15
Anti-corruption and
ethics management
Within the organization
16
Corporate governance
Within the organization
16
Community relations
Outside the organization
7 10 16
Power supply*
Outside the organization
3 7 8 9 11 13
Financial results
Within the organization
8 9 16
Health, safety and well-
being
Within and outside the
organization
3 6 7 8
*This topic is not material for Eletropar
17
All
Employees, Investors
Customers,
Communities,
Suppliers,
Government,
Investors and Society
Government,
Investors, Society
TCU
DJSI
ISE
DJSI
ISE
TCU
SASB
TCFD
TCU
SASB
TCFC
Not related to an
IR capital, but to
governance, which
spans across and
underpins all value
creation activities
One of the activities
through which we
convert inputs into value
TCU
ProEtica
DJSI
ISE
Global Compact
TCU
ProEtica
ISE
DJSI
All
All
TCU
DJSI
ISE
TCU
SASB
TCU
ISE
DJSI
SASB
ISE
Communities
Customers,
Government,
Investors, Society
Employees, Suppliers,
Government,
Investors
Employees,
Communities,
Suppliers
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT
Assurance GRI 102-56
The non-financial information in this report has been assured by an independent third-party under
the oversight of the Executive Board and the Board of Directors in accordance with international
assurance standards. The current report has been assured by PwC.
18
The Tucuruí Dam. Photo: Rony Ramos
ELETROBRAS I ANNUAL REPORT 2020GOVERNANCEPEOPLEPROSPERITYPLANETGRIMESSAGEEESG JOURNEYAPPENDIXESABOUT THIS REPORT EESG JOURNEY
19
Our EESG journey
In 2020, we used the WEF framework
as a basis for developing our
own sustainability framework
and expanding our reporting
on performance across the four
framework pillars. The Eletrobras
Group used the framework to develop
its 2020 Annual Report. On the
following pages, the disclosures on
our results, achievements, initiatives
and targets are organized around the
four pillars of the framework.
In 2020, the World Economic Forum
(WEF), in a collaboration with
the Big Four auditors, launched a
proposed framework for corporate
reporting with a major emphasis
on EESG (economic, environmental,
social and governance) aspects. The
framework organizes disclosures into
four integrated pillars: Principles
of governance, Planet, People and
Prosperity.
Each pillar comprises a set of metrics
and disclosures. The WEF framework
draws from existing standards and
disclosures, such as the Global
Reporting Initiative (GRI) and
International Integrated Reporting
Framework.
MESSAGEELETROBRAS I ANNUAL REPORT 2020EESG JOURNEYGOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTAPPENDIXES 20
ELETROBRAS I ANNUAL REPORT 2020EESG JOURNEYMESSAGEGOVERNANCEPEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTAPPENDIXES 21
MATERIAL TOPICS
ANTI-CORRUPTION AND ETHICS MANAGEMENT
RISK AND CRISIS MANAGEMENT
CORPORATE GOVERNANCE
Governance
A floating solar farm at Sobradinho. Chesf Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GOVERNANCE GRI 103-3
In 2020 we reformulated our policies,
developed new standards, unified
Governance evolves as the organization defines
processes and created opportunities for
and embeds its purpose at the core of its
shared decision-making
business. Governance is foundational to achieving
long‑term value, by aligning and driving financial,
environmental and societal performance, as
well as by ensuring accountability and building
legitimacy with stakeholders.
Eletrobras Group’s Senior manage-
ment has increased efforts in recent
years to enhance our corporate gover-
nance practices across management,
internal controls and compliance.
As a company with a country-wide
presence and operations, we respect
and value the inherent diversity in
each of our subsidiaries. We have
22
also undertaken a profound trans-
formation not only of our culture but
also of our identity, which will also be
reflected in our governance structure.
We are one Eletrobras and we need to
strengthen our identity and integrate
and connect our operations, processes
and people together.
To this end, in 2020 we reformulated
our policies, developed new standards,
unified processes and created opportu-
nities for shared decision-making. These
initiatives, coupled with remote working
and virtual communications due to the
pandemic, have helped to take us sever-
al steps further in our integration.
At year-end we conducted a major
review of our Bylaws to adjust them to
the standard bylaws for federal gov-
ernment-owned companies and the
corporate governance practices outlined
in Organization for Economic Co-oper-
ation and Development (OECD) guide-
lines.
Our policies and standards on corporate
governance, which we consistently keep
up to date, are available on our website,
including our Annual Charter of Public
Policies and Corporate Governance.
GRI 103-2
The Mauá thermal power plant. Amazonas GT Archives.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE ABOUT ELETROBRAS
ELETROBRAS COMPANIES IN BRAZIL GRI 102-4, 102-6
23
SDG
7
9
Eletrobras (Centrais Elétricas Brasilei-
ras S/A) is the leading generation and
transmission company in Latin America.
Accounting for 29% of installed gener-
ation capacity in Brazil, we have helped
to make Brazil’s energy mix one of the
cleanest in the world—97% of our in-
stalled capacity derives from low-carbon
energy sources.* In transmission, we op-
erate 76,000 kilometers of transmission
lines across corporate assets and Special
Purpose Entities (SPEs), including 70,000
kilometers of Backbone (Rede Basica)
transmission lines (voltage ≥ 230 kV),
corresponding to 43.54% of the Nation-
al Grid. GRI 102-1, 102-2
We are a publicly traded company
majority-owned by the Brazilian Federal
Government. We have a country-wide
presence and support 13,803 direct
jobs. Eletrobras was created by Law no. 3
890-A on June 11, 1962. GRI 102-5
SDG
*Including hydro, wind, solar and nuclear.
7
16
1
1
3
4
1
4
1
2
5
1
1
2
3
5
1
4
5
4
1
4
2
4
4
2
2
2
2
4
2
2
2
2
2
4
5
4
4
1
4
4
7
8
9
4
6
5
4
5
4
5
SDG
7
1
2
3
Eletronorte
Chesf
Amazonas GT
4
5
6
Furnas
CGT Eletrosul
Itaipu Binacional
7
8
9
Cepel
Eletronuclear
Eletropar
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 102-7, EU 1, EU 2, EU 4
24
50,648 MW
In installed capacity in 2020
61.2% of assets wholly owned
23.1% owned via Special
Purpose Entities (SPEs)
15.7% co-owned,
including half of the installed
capacity of Itaipu Binacional
(7,000 MW)
195,183 GWh generated
5.5% > 2019
108 power plants in
operation
29%
of Brazil’s capacity
39.6% North
21.3% Northeast
20.2% Southeast
16.1% South
2.9% Midwest
Note: Includes Eletronorte’s Senador Arnon Afonso Farias de Mello thermal
power plant (85.99 MW), currently free-leased to Roraima Energia S.A, the
successor of Boa Vista Energia S.A.
Note: The Teles Pires and São Manoel hydropower plants are deemed to be
in the North region and the Itumbiara hydropower plant is deemed to be in
the Southeast. These three dams are located on the border between regions.
Includes Furnas’s Roberto Silveira (Campos) thermal power plant (25 MW),
which has been taken out of commercial operation under ANEEL Resolution
708/2019.
~97% clean generation sources
91.3% hydro
3.9% nuclear
1.4% wind
~1% solar
Only 3.3% of generation
output comes from thermal
power plants (coal, diesel oil
and natural gas, representing
a relatively small share of
non-renewable sources in our
installed capacity.)
Transmission
76,128 km of transmission lines
66,431 km of directly owned
transmission lines and 9,698
km owned via Special Purpose
Entities (SPEs)
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE PRESENCE
IN BRAZIL
AND LATIN AMERICA
ELETROBRAS GROUP OWNERSHIP STRUCTURE
25
Founded in Rio de Janeiro in 1962, Eletrobras majori-
ty owns six subsidiaries and is the lead sponsor of the
Brazilian Power Sector Research Center (CEPEL). We
also own, on behalf of the Brazilian government, 50%
of Itaipu Binacional.
At December 2020, we had 4.7 GW an installed
generation capacity outside Brazil. In the transmis-
sion segment, we operate a total of 1,500 kilometers
of transmission lines connecting countries such as
Argentina, Uruguay and Venezuela. We have also
continued to progress on studies toward the devel-
opment of the Arco Norte Project, a 1,900 kilometer
transmission system traversing Brazil, Guyana, Surina-
me and French Guiana.
R&D
SHAREHOLDING
GENERATION
GENERATION &
TRANSMISSION
(50%)
(99.91%)
(99.91%)
(99.58%)
+
(99.89%)
(99.48%)
94 SPEs
including 15
in the process
of being spun
off, 14 in the
process of
being merged,
1 put up for
sale, 15 being
wound up
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SHARE OWNERSHIP
Shareholders
Common
% Preferred. “A"
% Preferred. “B”
%
Total
%
26
Controlling Shareholder
Federal Government
BNDESpar
BNDES
FND
FGHAB
Other
Non-controlling Shareholder
Cust. CLBC
Resident
Non-Resident
ADR Program
Other
Resident
Non-Resident
Total
667,888,884
141,757,951
74,545,264
45,621,589
1,000,000
51.82
11.00
5.78
3.54
0.08
0
0
0
0
0
0
0
0
0
0
494
18,691,102
18,262,671
0
0
0.00
6.68
6.52
-
-
667,889,378
160,449,053
92,807,935
45,621,589
1,000,000
358,028,908
27.78
146,920
100.00
242,987,127
86.80
601,162,955
221,568,126
97,712,776
38,663,271
84,489
246
1,288,842,596
17.19
7.58
3.00
0.01
0.00
100
82,812
56.37
133,714,017
47.77
355,364,955
1
0
21,629
27
146,920
0.00
92,262,005
32.96
189,974,782
-
5,235,367
1.87
43,898,638
14.72
9,666,577
100.00
9,772,695
0.02
100
213
0.00
486
279,941,394
100
1,568,930,910
42.57
10.23
5.92
2.91
0.06
38.31
22.65
12.11
2.80
0.62
0.00
100
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE MANAGEMENT STRUCTURE
GRI 102-18
SDG
16
GENERAL MEETING
BOARD OF DIRECTORS
FISCAL BOARD
AUDIT
STRATEGY, GOVERNANCE
& SUSTAINABILITY
COMMITTEE
MANAGEMENT, PEOPLE &
ELIGIBILITY COMMITTEE
AUDIT
& RISK COMMITTEE
DISINVESTITURE
COMMITTEE
WHIS-
TLEBLOWING
MANAGEMENT
INTERNAL
AUDIT
REGULATORY
AFFAIRS
GENERAL
OMBUDSMAN
BOARD
OF DIRECTORS
GOVERNANCE
OFFICE
EXECUTIVE BOARD
CEO
CHIEF
GENERATION
OFFICER
CHIEF
TRANSMISSION
OFFICER
CHIEF
GOVERNANCE,
RISK &
COMPLIANCE
OFFICER
CHIEF
FINANCIAL
& INVESTOR
RELATIONS
OFFICER
CHIEF
MANAGEMENT &
SUSTAINABILITY
OFFICER
27
Independent Assessment
of Governance Bodies
GRI 102-28
SDG
16
Since 2013, we have annually assessed the individual
and collective performance of the Board of Directors
and Executive Board and, more recently, the Fiscal
Board.
The assessment methodology has been standardized
across all Eletrobras Group companies.
The results are compiled into a report and respondents
participate in a feedback meeting. Since 2018,
performance assessments have been conducted
independently by external consultants at all Eletrobras
Group companies.
The assessment flow was maintained in 2020,
including structured interviews, self assessments and
personalized assessments for chairpersons and CEOs.
The assessment criteria cover three pillars: skills,
results, and roles and responsibilities. The results
are compiled into a report and presented in a
feedback meeting. Drawing on the assessment,
recommendations are made on actions to address
identified opportunities for improvement.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Board of Directors Makeup
GRI 102-22
SDG
16
4
independent members out of a total of
10 members of the Board of Directors*
7
members appointed by the
Minister of Mining & Energy
1
members appointed by the
Minister of the Economy
1
member appointed by minority
shareholders holding preferred
stock in Eletrobras
1
member appointed as a
representative of employees
* This is the Board composition as
of 2020, reflecting the resignation
of board member José Guimarães
Monforte as of December 2020.
28
We implemented a
corporate nominations
management system
to assess the profiles of
candidates to our more
than 500 management
positions
• A unified term of 2 YEARS, renew-
able for an additional 3 CONSECU-
TIVE TERMS
Selecting senior leadership
and assessing performance
GRI 102-24
• 1.97-year average length of ser-
vice of Board members
• DIVERSIFIED ACADEMIC BACK-
GROUNDS IN: economics, elec-
trical engineering, business
administration, management
and finance, law, mechanical and
production engineering, econom-
ics engineering, civil engineering,
and other fields
• The chairman of the Board of
Directors is appointed by members
of the General Meeting.
Since 2016, we have taken steps to im-
prove our approach to selecting board
members and executive officers. Candi-
dates for these positions are required to
meet certain prerequisites outlined in
our Bylaws and applicable regulations,
as well as other criteria and legal stan-
dards. The selection process includes
searches on sanctions databases by
our ethics committees, searches on the
databases of our internal Ombudsman
departments, and assessments by the
People, Eligibility, Succession and Re-
muneration Committee, in accordance
with Decree no. 8945/16. Consoli-
dated information from the integrity
function’s assessment is submitted
for approval to the Executive Board
and, where applicable, the Board of
Directors, depending on the workflow
outlined in the Nomination Rules.
In 2020, we implemented a corporate
nominations management system
to more efficiently assess the profiles
of candidates to our more than 500
Board of Directors and Executive Board
positions across Group companies. The
system assists in managing compliance
with the criteria above. In the year,
approximately 350 nominations were
assessed against eligibility and credibil-
ity criteria. GRI 103-2, 205-1, EU14
Initiatives to improve the director and
officer nominations process informed
the development of the Eletrobras
Group Board of Directors and Executive
Board Nominations Policy.
SDG
16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Management Training
GRI 102-27
In 2017 Eletrobras launched a develop-
ment program for directors and officers,
called Diálogos Executivos, that provides
annual training to support the consis-
tent, continuous development of Board
of Directors, Audit Board and Executive
Board members. Due to the COVID-19
pandemic, all training was conducted
remotely via videoconferencing.
29
SDG
16
In 2020, the Board of Directors received
training on the following topics:
• Innovation Trends in the Power Sector
– the new consumer
• Digital Levers for Electricity Trading
• Climate Change and Its Effects on the
• Digital Transformation in the Power
Sector
• New Corporate Governance Trends
Power Sector
• Cyber Security (Cyber Risks) and Data
• Organizational Culture
Protection
Training. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 30
Roles and responsibilities of executive directors
GRI 102-18, 102-19
SDG
16
The roles and responsibilities of the Board of Direc-
tors and Executive Board are outlined in Eletrobras’s
Bylaws and internal rules, and are in accordance with
applicable law.
The Board of Directors has the following three ad-
visory committees, all composed of members of the
Board, who conduct in-depth assessments on strate-
gic matters across the economic, environmental and
social dimensions:
Statutory Audit & Risk Committee: advises and
provides recommendations to the Board on matters
such as the internal audit, financial reporting and
independent audit; oversight and risk appetite; internal
controls; and risk management and financial manage-
ment, increasing the effectiveness and quality of Board
decisions on these matters.
Strategy, Governance & Sustainability Committee:
advises and issues recommendations to the Board
on business strategy, sustainability policies and gov-
ernance practices, increasing the effectiveness and
quality of Board decisions on these matters.
People, Eligibility, Succession & Remuneration
Committee: advises and issues recommendations to
the Board on risks and strategies relating to people
management and the eligibility and remuneration of
members of the Board of Directors and Audit Board.
The Angra nuclear power plant. Eletronuclear Archives
The Executive Board is composed of the CEO and up
to 06 (six) officers appointed by the Board of Directors,
serving a unified term of 2 (two) years, renewable for
a maximum of 3 (consecutive terms). The Executive
Board may establish working groups as needed to
conduct in-depth assessments on management-re-
lated matters, and has internal rules on delegating
powers and limits of authority to authorize expendi-
ture and sign contracts and other documents.
The Audit Board consists of 5 (five) members and
an equal number of alternates who are elected in
the General Meeting for a term of 2 years, renew-
able for a maximum of 2 (two) consecutive terms.
Members of the Audit Board, acting individually or
collectively, exercise oversight of Management’s
performance of its duties under applicable law and
our bylaws.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Remuneration policies for the Board
of Directors, Audit Board and com-
mittees
GRI 102-35, 102-36
SDG
16
Our remuneration policies for the Board
of Directors and Audit Board establish a
fixed salary equal to 10% of the aver-
age monthly remuneration received by
members of the Executive Board (CEO
and executive officers).
The Executive
Board’s annual
variable
remuneration is
linked to a set of
targets
31
derived from Business & Management
Plans (PNGs), such as: “Dow Jones Index”,
“Generation Asset Availability”, “Trans-
mission Asset Availability”, “Global
ISE" and “Operating Revenue / no. of
employees”. Other employees are also
eligible to the program.
Managers are subject to a 15% prof-
it-sharing deflation factor where they
fail to implement improvements identi-
fied by the internal audit.
income). These clawback rules increases
executive’s commitment to sustaining
performance by entitling Eletrobras to
partially or fully recover the remaining
installments of variable remuneration.
The Program also establishes that any
executives terminated for misconduct
lose their entitlement to any variable
remuneration whatsoever.
Senior executives, and specifically com-
pany managers, are entitled to profit
sharing linked to their performance on
three groups of indicators: Consolidated
Financial and Operational Performance,
which includes business indicators
Executive Board members receive fixed
monthly remuneration plus Annual
Variable Remuneration (RVA) depending
on the extent to which annually agreed
targets are met. Targets are set across
three tiers: Corporate; Executive Board
(which measures Executive Board align-
ment with the guidelines established by
the Board of Directors and requirements
outlined by the Office for Coordination
and Governance of State-Owned Enter-
prises (SEST); and Business Units.
The holding company has a share-based
variable remuneration program in which
cash payments are calculated based on
the number of reference shares held by
executives.
Variable remuneration is subject to a
five-year clawback, with payments in
the second to fifth year contingent on
sustained financial performance (net
REMUNERATION EARNED BY BOD AND AUDIT BOARD MEMBERS FROM 2018 TO 2020
Remuneration
Board of Directors
Fiscal Board
Executive Board
Statutory Audit & Risk Committee (1)
2020
582,336.02
327,690.95
6,310,871.99
2,177,886.47
2019
597,351.44
358,410.82
5,707,520.05
1,694,564.52
2018
588,596.49
382,649.66
6,948,244.60
901,556.04
(1) The BoD composition changed from 04 members in 2019 to 05 members in 2020.
Note: Three members elected to receive remuneration for their participation in the committee.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE v
ELETROBRAS I ANNUAL REPORT 2020
32
THE ELETROBRAS IDENTITY
We are guided by a commitment
to the sustainable development
of society, to ethics, and to
respecting people and life, in line
with our Sustainability Policy.
Purpose
Vision
We put all our energy into the
sustainable development of
society.
To be an innovative,
clean energy company,
recognized for excellence and
sustainability.
Values
GRI 102-16
SDG
16
• Respect for people and life
• Ethics and transparency
• Excellence
• Innovation
• Collaboration and recognition
A floating solar farm at Sobradinho. Photo: Zeca Teixeira
Sustainability Management System
The Eletrobras Group Sustainability Management System is structured
into five pillars.
Eletrobras Group Sustainability Policy
Corporate Sustainability Disclosures System (IGS System)
33
Our Sustainability Policy guides our initiatives to promote
sustainable business and sustainable development. The Policy,
which was revised in 2019, completed its 10th year in 2020.
Executive Sustainability Management Committee
This Committee brings together the heads of sustainability at
Group companies, under the oversight of the holding company. The
Executive Sustainability Management Committee is responsible for
disseminating sustainability initiatives and coordinating the three
other pillars in the Management System: Corporate Sustainability
Disclosures System, Value Creation Model, and Integrated Reporting.
Value Creation Model
Our Value Creation Model, which was reformulated in 2019,
shows how sustainability is embedded in business processes
across the Eletrobras Group. This model, coupled with integrated
action Group-wide, has helped to drive best practices and the
sustainability of the business, and ultimately greater value creation
for stakeholders. Our Value Creation Model establishes 30 value
creation expectations to be achieved through our business model.
See the diagram on page 34 for details.
Developed in partnership with CEPEL, the IGS system is a strategic
tool for managing sustainability disclosures. In 2019 a new version
was launched that also incorporates legacy versions of the system,
and new users were onboarded. Alongside the Environmental
department—the first to use the system—the Sustainability,
Business Performance, R&D, Investor Relations and Infrastructure
& Logistics departments now also use the system, which has a
total of 970 users.
Integrated Reporting
Integrated Reporting is an approach that organizations use
to coherently communicate their value creation performance
to stakeholders, in accordance with guidelines issued by the
International Integrated Reporting Council (IIRC). Eletrobras has
used this approach in developing annual reports since 2018,
supplementing the GRI Standards. This report therefore provides
information on both tangible and intangible aspects across
the financial, manufactured, intellectual, human, social and
relationship, and natural capital.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE VALUE CREATION
MODEL
Learn about how the Eletrobras Group transforms inputs,
through its business activities, into outputs and
outcomes and how they create value for the
business and society
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capital
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NSMISSION, CONT R A C T S , S
PURPOSE
VISION
We put all our energy into
the sustainable
development of society.
To be an innovative, clean energy
company, recognized for excellence
and sustainability.
VALUES
Collaboration
and recognition
Innovation
Ethics and
transparency
Excellence
Respect for
people and life
I
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N
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A
R
P
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SDG 8
SDG 7, 9
SDG 4, 8
SDG 7, 9
SDG 7, 13
SDG 11, 16
SDG 1 to 17
SDG 9, 13, 15
SDG 4, 5, 8, 10, 12, 13, 16
SDG 1 to 3, 7, 9, 10, 13 to 15
Supplier development
Revenue reliability
Conservation of biodiversity
Energy savings
Fairly priced (sustainable) contracts
Contribution to sustainable development
Professional development and training
Participatory dialog
Access to electricity for all, with a reduced risk for social and environmental
impacts
Dividends
A more sustainable supply chain
Respect for human rights
Jobs and income
Integrity (ethical, lawful and transparent conduct)
Private social investment
Improvements to national infrastructure
Better living conditions in affected communities
Affordable electricity
Partnership in managing government programs
Participation in structuring projects
Research, development and innovation
Contract predictability
Sponsorship of culture, sports and events
Greater diversity
SDG 1 to 3, 7 to 9, 12, 13, 17
SDG 1, 3, 4, 7 to 9, 13, 15
SDG 1 to 3, 8, 9, 10, 12
SDG 5, 8, 10, 12, 16
SDG 5, 8, 10, 12, 16
SDG 1, 3, 9, 11, 16
SDG 3, 4, 8, 9, 13
SDG 8, 9, 10, 16
SDG 8, 12, 16
SDG 3, 7 to 9
SDG 7, 9, 11
SDG 7 to 9
SDG 7, 9
SDG 16
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ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Our impacts
The chart opposite maps out the positive
and negative impacts that our assets
produce from inputs
NATURAL CAPITAL
INPUTS
ASSET
Water
Hydropower dams
IMPACTS
NEGATIVE
Changes in water quality; proliferation of macrophytes, changes in ecosystems/
habitats; involuntary displacement; loss of flora and fauna; multiple uses of
reservoirs
35
Soil
(land use)
Hydropower dams,
thermal power plants
and wind farms
NEGATIVE
Loss of vegetation cover; forest fragmentation; erosion; siltation
Natural gas
Thermal power plants
GHG missions (climate change)
NEGATIVE
Coal
Thermal power plants
NEGATIVE
GHG Emissions (climate change); Changes in air quality
Wind
Wind farms
NEGATIVE
Changes in bird-migration patterns and collisions; reduced populations of
migratory birds; visual and sound pollution
Uranium
Nuclear power plants
Production of clean electricity; reduced plant footprints and local impacts
POSITIVE
NEGATIVE
Radioactive waste requiring storage
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 36
SOCIAL AND RELATIONSHIP CAPITAL
INPUTS
IMPACTS
Sponsorship, social
media and advertising
campaigns
POSITIVE
Preservation of cultural heritage; knowledge
creation and dissemination, reputation building
Social communications,
Code of Ethics & Integrity,
corporate policies and
volunteering
POSITIVE
Reputation building; improved institutional
relations; strengthened organizational culture;
corporate alignment and integrity; positive brand
perception; fewer lawsuits; contributions to
policymaking; engagement and communications
channels with different stakeholders, and
Ombudsman interaction
POSITIVE
Transparency; access to information
Social and environmental
programs
POSITIVE
Greater contributions to policymaking; reduced
conflicts; impact mitigation; social transformation
Corporate reporting
POSITIVE
Transparency, communications and accountability
Institutional relations
POSITIVE
Growth in market value;
Credibility
Reputation survey
POSITIVE
Brand value
FINANCIAL CAPITAL
INPUTS
Equity - Cash Earnings
Equity - Equity Earnings
Third parties - Loans / Financing
IMPACTS
POSITIVE
Investment capacity
POSITIVE
Liquidity
POSITIVE
Market expansion
NEGATIVE
Changes in foreign exchange and interest rates
Return on investment
Shares and Debentures
POSITIVE
Project feasibility
NEGATIVE
Direct impact on other capitals
HUMAN CAPITAL
INPUTS
Direct Employees
IMPACTS
POSITIVE
Jobs and income
Training, Capacity Building and
Motivational Programs, Processes
and Procedures
POSITIVE
Intellectual Capital Development
Knowledge Management
POSITIVE
Retaining and transmitting knowledge over
time
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
INTELLECTUAL CAPITAL
INPUTS
Research & Development +
Innovation
37
IMPACTS
POSITIVE
Technological innovation; support for academic research and scientific development
Cybersecurity
POSITIVE
Business integrity; protection of corporate, employee and customer data
Patents, Intellectual Property and
Copyright
POSITIVE
Monopoly on inventions; protection against unauthorized use; new and improved
products and services; more efficient production processes; a sustainable organization;
competitive advantage; preservation of intellectual capital
MANUFACTURED CAPITAL
INPUTS
Generation - Hydropower Plants,
Nuclear Power Stations, Thermal
Power Stations, Wind and Solar
Farms
IMPACTS
POSITIVE
Revenue; jobs; and power supply
Transmission Lines and
Substations
NEGATIVE
Involuntary displacement; visual and sound pollution
Buildings, Facilities and
Infrastructure
POSITIVE
Technological know-how
NEGATIVE
Office waste
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 38
EMBEDDING SUSTAINABILITY IN GOVERNANCE
Drawing on our Strategic Plan, which
articulates our long-term vision
(2020-2035), Eletrobras’s Business
& Management Master Plan (PDNG)
outlines trends, guidance, indicators,
and value and impact levers over the
next 5 years (2021-2025) and maps
them to the Sustainable Development
Goals (SDGs) set by the United Nations
(UN) 2030 Agenda, to which Eletrobras
has voluntarily subscribed (read more
on page 41). The 9 SDGs supported by
initiatives within the PDNG are linked
to business-related projects or our
commitments to society. Learn more
in this video.
Our Sustainability 4.0
Program is an integral part
of the PDNG
Integral to the PDNG is our Sustain-
ability 4.0 Program, a set of 12 projects
related to the four economic, environ-
mental, social and governance (EESG)
dimensions. The Program is the result
from a benchmarking assessment
of trends and industry best practices
related to corporate sustainability.
The Sustainability 4.0 Program was
informed by the Eletrobras Group
Protected areas at Itaipu. Photo: Alexandre Marchetti.
Materiality Matrix, the PDNG, our Sus-
tainability Policy, our commitment to
the 2030 Agenda and the Sustainable
Development Goals (SDGs), and good
practices derived from sustainability
indexes and interaction with stake-
holders. The Program was launched
in 2019 and fully integrated into the
PDNG in 2020.
Progress is monitored on a quarterly
basis by the Strategy, Governance &
Sustainability Committee, which reports
directly to the Board of Directors.
In 2020, we also launched our EESG
Journey, a new and approved approach
to organizing, managing and reporting
corporate sustainability information.
EESG Journey provides an integrated
view of our Economic, Environmental,
Social and Governance performance and
can be accessed on our website.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 39
Programa
SUSTAINABILITY
SUSTENTABILIDADE
Program
4.0
4.0
SUSTAINABILITY 4.0 PROGRAM - PDNG 2020-2024
Projects
Strategic Guidance
(PDNG 2020-2024)
Priority SDGs
(PDNG 2020-2024)
Leveraging Human Capital
Culture & People
Synergies with Industry 4.0
Innovation and Digital Transformation
Stakeholder Engagement in the
Value Chain to Raise Awareness about
Human Rights
Sustainable Sourcing
Commitment to Stakeholder
Engagement and Transparency
Governance
Management
Governance
Sustainable Business/2030 Agenda
Value and Investment
Improving Corporate Governance Practices
Governance
Enhancing Assessments of
Social and Environmental Factors in
Risk Management
Energy Transition
GHG Emissions Offsets and
Environmental Protection
Certified Renewable
Source Electricity
Sustainable Management of Financial Capital
* G&T - Generation and Transmission
Governance
G&T* Efficiency
G&T Expansion
G&T Efficiency
G&T Expansion
New Business
Value and Investment
G&T Efficiency
Management
8 9
7 8 9 16
7 8 9 16
8 13 16
13 16
7 8 9 13 16
16
7 9 13 16
7 9 13
7 8 9 13
7 9 13
8 9 16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Our projects and programs draw guidance from our Sustainability Policy, as well as from our
Environmental, Social Responsibility, Supplier Management and other policies.
40
Sustainability
4.0 Program
Highlights
in 2020
Mapped out more than 70 stake-
holder engagement channels
and developed a new workflow
for managing stakeholder infor-
mation.
Defined a High-Performance
Work System model and Employ-
ee Lifecycle
Supplier due diligence, screen-
ing, monitoring and develop-
ment features implemented in
SAP
Launched EESG Journey, a sys-
tem based on the WEF sustain-
ability framework, comprising
four pillars and 12 topics
Implemented a Small Business
Development Program in collab-
oration with SEBRAE
Developed and approved a Crisis
Management and Communica-
tions Policy
Updated and ratified our com-
mitment to the 2030 Agenda
within the PDNG 2021-2025
Implemented a range of ini-
tiatives to optimize our debt
structure by strengthening cash
flows, discharging guarantees,
and reducing debt service costs
Coordinated the group imple-
menting a waste management
plan at the holding company,
preparing the first draft of the
plan for internal review
Identified social and environ-
mental risk factors across the
project lifecycle
Set a GHG offsets target to
achieve zero net emissions, and
established lines of action
Defined indicators and variables
for assessing ecosystem services
from carbon sequestration
Launched an R&D+I portfolio
and aligned innovation initia-
tives across companies
Developed the documentation
for a Call for Social and Envi-
ronmental Projects
Authorized purchases of I-RECs*
from subsidiaries to offset the
scope 2 GHG emissions of the
holding company
A total of 94 SPEs at year-end
2020, with this number expected
to be reduced further to 49 SPEs
by year-end 2021
Achieved gains from initiatives
within our Zero-Based Bud-
geting project: met 106.8% of
the 2020 target for the holding
company
* International Renewable Emission Certificate
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
2030 AGENDA
AND SDGs
In our approach to advancing sustainable business, we
prioritize initiatives and projects that support the UN’s
2030 Agenda and the Sustainable Development Goals
(SDGs). The SDGs Eletrobras has prioritized and on
which we review our performance in this report are:
Monitoring performance
Our Corporate Project Management Office monitors,
reviews and reports to executive directors on the prog-
ress of relevant initiatives and programs at Eletrobras
Group companies—including initiatives under the
PDNG and initiatives affecting annual variable remu-
neration for executive directors. This allows us to iden-
tify any required adjustments and corrective action, or
reformulate plans. Interim information is provided on a
quarterly basis on our portal.
41
We encourage our workforce and management to sup-
port our strategic objectives through management by
competencies instruments, especially Business Perfor-
mance Goals Contracts (CMDE), which Eletrobras Group
companies have been required to sign since 2010.
These contracts are aligned with business and manage-
ment master plans, and contain indicators and metrics
describing trends and results across the financial, opera-
tional, social, environmental, people, integrity and man-
agement dimensions. Group companies’ performance
on these metrics demonstrates the extent to which they
are supporting the holding company’s strategy, and af-
fects the annual variable remuneration paid to executive
directors and the profit-sharing bonuses paid to our
workforce, including management. These metrics also
inform the performance assessments of all employees,
including members of the Board of Directors.
SGDs newly prioritized in 2020
Based on the results of a survey of 224 respondents —
including corporate sustainability experts at all Eletro-
bras Group companies — the Executive Board and the
Board of Directors approved an additional 4 priority
SDGs in the Strategic Plan 2020-2035, for a total of 9
prioritized SDGs.
Click here learn more about Eletrobras’s commitment to
the SDGs.
Performance
and the SDGs
Some performance indicators relate to the
Sustainable Development Goals within the 2030
Agenda that Eletrobras has prioritized. These
are covered throughout this report and, on a
consolidated basis, on page 167.
Among the indicators affecting the Annual
Variable Remuneration of executive directors
is the SDG Alignment Index (IAO), which mea-
sures weighted average performance on a set
of strategic indicators within the 2030 Agenda,
denoting the extent to which Eletrobras Group
companies’ performance is aligned with their
commitments.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE IAO composition for 2021-2025
Energy Savings in
Corporate Buildings
Lost-time injury
frequency rate, direct
and third-party
employees
R&D+I Investment /
Regulatory NOR
42
Due diligence on
suppliers exposed to
fraud and corruption
risks
Weighted ratio of basic
salary and remuneration
of women to men, at
multiple levels
Critical suppliers that
have undergone EESG
due diligence
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SCORECARD
TABLE
Sustainability Pillar
Strategic Guidelines
Variable
remuneration
for executive
directors
Variable remuneration
for employees and
managers
Related SDGs
43
G&T Expansion
Achieve leadership in G&T, with a focus on clean
energy.
G&T Efficiency
Create value through more efficient G&T assets
Trading
Achieve leadership in electricity trading, with at-
tractive margins and efficient risk management
New Business
Invest in new businesses, especially in energy,
participating in the current consolidation in the
industry (M&A)*
Value and Investment
Enhance value creation and strengthen our capacity
for investment
Management
Focus management on value creation and increas-
ing competitiveness
Innovation & Digital Transformation
Achieve leadership in innovation and advance a
digital transformation of business and management
processes
Culture & People
Develop a meritocratic culture of high performance
and excellence in people management
Governance
Achieve excellence in Governance, Risk Manage-
ment and Internal Controls (GRC)
Prosperity
Note: As part of our
approach to governance
and compliance, senior and
middle managers’ variable
remuneration is subject
to a deflation factor of up
to 10% in the event that
they fail to comply with
recommendations from the
internal audit and regulatory
authorities.
Planet
People
Governance
* Mergers and Acquisitions
52%
69%
7 8 9
10 11 12
3%
5%
40%
6%
7%
7 9
11 12 13 15
8 10
18%
12 16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
44
RECOGNITION
In 2020, Eletrobras:
• Won an award in the “Best Internal Financial Department:
Infrastructure & Energy” category in the Finance & Law Summit and
Awards (FLSA), organized by Leaders League Brazil.
• Ranked 31st for gross revenue (two positions higher than the
previous year) in Valor Grandes Grupos, a list of Brazil’s 200 largest
conglomerates based on financial statements for 2019, and in 8th
for net income. In the services segment, Eletrobras ranked 1st for net
income, 2nd for equity and 7th among the top 20.
• Climbed positions in a 2019 special edition of business magazine
Examelisting the 3,000 largest companies in Brazil by net sales.
Itaipu Binacional ranked 39th; Eletrobras Furnas 75th; Eletronorte
124th; Chesf 146th; Eletronuclear 259th; Amazonas GT 307th; and CGT
Eletrosul 388th.
• Came 3rd in the Energy, Mining and Sanitation category of the
Virtuous Company Ethical Culture Ranking 2020. In the overall
ranking of Brazilian companies, Eletrobras Eletronuclear ranked
4th, Itaipu Binacional 9th; Eletrobras holding 14th; and Eletrobras
Furnas 30th.
• Vigeo Eiris – We ranked 1st in 2020 out of a total of 53 companies in
the Electric and Gas Utilities segment in emerging markets, and 40th
out of the total universe of 4,893 green bond issuers. Vigeo Eiris also
assessed Eletrobras Group companies’ commitment to SDGs 7 and 13
within the 2030 Agenda.
Eletrobras has been named
to several sustainability
indexes GRI 103-2, 205-1
B3 Corporate Sustainability Index (ISE
B3) – In 2020 we were named to the
B3 ISE index portfolio for the 13th time.
Valid for the period from January 4 to
December 30, 2021.
Carbon Disclosure Project (CDP) – Our
A- score denotes leadership in industry
best practices in the areas of water
stewardship and climate change.
IG Sest – In 2019, for the third time we
received the top score on Governance
for government-owned companies.
ICO2 – Carbon Efficient Index portfolio.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 45
• Ranked seventh among the top publicly
traded companies in Brazil in the Forbes
Global 2020 list.
• Was listed on the 2020 Latin America
Executive Team. Wilson Ferreira Junior
was listed second in the top CEO list in
the “Electric & Other Utilities” category.
Elvira Cavalcanti Presta ranked third in
the Chief Financial Officer list, while Paula
Prado came third in the Investor Relations
Professional list.
• Was recognized as one of the top
100 companies in the 2020 Corporate
Reputation Monitor (MERCO) list, climbing
14 places from 94th in 2019, and ranking 1st
among electric utilities.
The Sustainability
Yearbook 2021
We received a Bronze award
in The Sustainability Yearbook
2021, an annual publication
listing the world’s most
sustainable companies. The
yearbook is published by
Standard&Poor’s using the same
methodology as used to select
companies for the Dow Jones
Sustainability Indices (DJSI)
2020. More than 7,000 global
companies in different industries
were assessed, and 630 were
selected for the yearbook based
on their scores on economic,
environmental, social and
governance metrics.
• Ranked 27th in Valor 1000, a list of Brazil’s
largest companies; 4th among electric
utilities; 3rd for net income and equity; 4th for
operating income; and 7th for EBITDA. The
awards are organized by Brazilian newspaper
Valor in collaboration with Serasa Experian
and Fundação Getulio Vargas’s (FGV) Center
for Finance Research.
• Was listed in the Época Negócios 360° list
(published by business magazine Época in
collaboration with Fundação Dom Cabral),
ranking 3rd in the energy sector; 4th among
publicly traded companies; 9th in the
Southeast; and 12th in the overall ranking.
• Took 35th place in As Melhores da Dinheiro
2020, a list of the 1,000 largest companies in
Brazil published by business magazine Istoé
Dinheiro.
• Ranked 41st among Brand Finance’s Top 50
most valuable brands in Brazil.
• Obtained renewable energy certification
against the International REC Standard
from Instituto Totum, for Eletrobras Furnas’s
Itumbiara (GO) hydropower plant and Fortim
(CE) wind farm complex.
• Was listed in third place in the Analyst Days
category on Institutional Investor’s 2020 Latin
America Executive Team.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE INTEGRITY PROGRAM
GRI 103-2, 103-3, 205-1, 205-2, 205-3
SDG
16
The Eletrobras 5 Dimensions Integrity
(Compliance) Program, created in 2016,
comprises a set of ongoing initiatives
to ensure compliance with the laws and
regulations applicable to our industry
and improve the procedures in place at
Eletrobras Group companies for prevent-
ing, detecting and addressing miscon-
duct. The program conforms to the
Brazilian Anti-Bribery Act, and is aligned
with the strategic guideline calling for
improvement of corporate governance
and integrity under the PDNG.
Eletrobras 5 Dimensions is a unified
and standardized program spanning all
Eletrobras Group companies. The pro-
gram was implemented and is managed
by integrity/compliance managers at
Group companies, under the oversight
of Eletrobras’s Chief Governance, Risk
& Compliance Officer. The name of the
program is a reference to the five di-
mensions involved in creating a business
management environment focused on
compliance: periodic risk assessment;
development and implementation of
policies and procedures; internal com-
munications and training; continuous
program monitoring; and remediation
action and penalties.
Within this philosophy, we have imple-
mented a range of integrity mechanisms
in order to detect, prevent and address
fraud and corruption risks, including
mechanisms to: identify the risks to
which Eletrobras Group companies are
exposed and take appropriate measures
to address them; directly assess the in-
tegrity of third parties, such as suppliers,
business partners, sponsorees, donees
and members of corporate governance
bodies at companies in which Eletro-
bras holds equity interests; and provide
communications and training to specific
audiences, including external audiences
such as suppliers and partners.
For suppliers and business partners, we
assess integrity both during onboard-
ing—by reviewing their profile and
background information—and on an
ongoing basis to identify any suppliers
which could represent an integrity risk for
the Company.
46
At year-end 2020, of the 462 suppliers
onboarded by Eletrobras Group com-
panies and deemed critical for integrity
purposes, 460 (99.57%) had completed
integrity due diligence forms to deter-
mine whether they or any members of
their management have been accused
of, investigated for, proceeded against
or indicted for fraud or corruption in the
last 10 years, whether and the extent to
which they engage in dealings with gov-
ernment officials, whether they have an
Integrity Program in place and the level of
program maturity, and the nature of their
relationships with third parties. GRI 205-1
The Integrity Program is monitored by
tracking indicators of the effectiveness
of integrity mechanisms, including: the
number of employees who have been
trained on ethics and integrity policies
and procedures; the number of suppliers
deemed critical for integrity purposes
that have undergone due diligence and
received training on the policies and
practices adopted by Eletrobras Group
companies; the number of business part-
ners address by awareness raising initia-
tives; and the number of whistleblowing
reports received.
Our Integrity Program
spans all Eletrobras Group
companies
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 47
In 2020 we approved a policy outlin-
ing guidelines on Program monitor-
ing, including a system for collecting,
reviewing and storing the information
needed to assess and manage Program
effectiveness.
The process for handling and addressing
whistleblowing reports was also improved
in 2020, and a dedicated function has
been in place since 2019 to address
reports on violations and concerns, re-
porting directly to the Eletrobras Board of
Directors. GRI 103-2
We resumed
construction
of Angra III
In 2020 Eletrobras Eletronuclear resumed
construction of its Angra III nuclear power
plant on the coast of Rio de Janeiro state,
which had been on hold since 2015. To
ensure integrity in this public-interest
project, a compliance oversight com-
mittee has been set up and indepen-
dent consultants have been engaged to
monitor procurement, budgeting and
construction work, in order to provide the
Board of Directors with the information
needed about the project to ensure it is
compliant with Eletrobras’s policies on
integrity, ethics and anti-corruption. The
internal committee is composed of two
independent members of the Board of
Directors of Eletronuclear and the Chief
Governance, Risk & Compliance Officer of
the holding company.
The Angra II nuclear power plant. Eletronuclear Archives.
Management and employees also
received communications and training
during the year to improve their under-
standing of integrity and ethics issues.
This included an online course on the
Eletrobras Group’s Culture of Ethics and
Integrity, and an innovative, fully online
“Integrity and Ethics Week” event held
concurrently at all Group companies,
featuring lectures delivered by guest
speakers with extensive experience in
ethics, integrity and governance, and
lectures given by specialists from Group
companies on ethics and integrity
matters addressed in our policies and
standards, such as fraud and corruption
risks; conflict of interest; ethics and diver-
sity; ethical conduct online and on social
media; and workplace harassment.
Our key integrity programs and initia-
tives are reported on quarterly to the
Audit & Risk Committees of Eletrobras
Group companies, which report to the
Board of Directors.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE THE FIVE DIMENSIONS OF OUR INTEGRITY PROGRAM
GRI 103-2, 103-3
48
Integrity Program management
environment
This dimension concerns the need for full
support from governance bodies in fostering a
culture of ethics and integrity, through initiatives
demonstrating tone from the top
1
Program monitoring, remediation
action and penalties
Continuously monitoring the program
through the internal audit, internal
controls within ProERP (SAP), and tests
on SOX controls.
5
EXISTENCE
QUALITY
EFFECTIVENESS
2
Periodic risk assessment
Identifying, assessing, addressing and
monitoring vulnerabilities and risk factors for
fraud and corruption within the Eletrobras
Group.
Communication and training
Disseminating the Program through
communications and training activities
suited for each audience.
*SOX - Lei Sarbanes-Oxley
4
3
Developing and implementing Integrity
Program policies and procedures
Creating and implementing a framework for building
a culture of ethics and integrity at Eletrobras Group
companies; this includes development, implementation
and adherence to applicable policies and other
standards on integrity in day-to-day activities.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE In 2020:
• We launched Eletrobras 5 Dimensions, a six-episode
web series that uses a lighthearted approach to present
the guidelines in our Integrity Program. GRI 103-2, 205-2
• We developed a methodology and established criteria
for classifying internal documents based on the level of
confidentiality or required access restrictions.
• This standardized the approach to classifying informa-
tion across Eletrobras Group companies.
• The new system is designed to ensure that each docu-
ment is treated with the required level of confidentiality.
• It also sought to adapt the company to comply with the
Brazilian General Data Protection Act (LGPD).
• We implemented an internal controls management
system in 2020.
• Our Code of Conduct, Ethics & Integrity
was revised on its 10th anniversary. We also launched a
mobile app so employees can quickly reference the code
on the go. GRI 103-2, 205-2
ANTI-CORRUPTION COMMUNICATIONS AND TRAINING
GRI 205-2
SDG
16
49
Our integrity
policies
GRI 102-16, 103-2
SDG
16
1 Eletrobras Group Code of Ethical Conduct & Integrity
2 Eletrobras Group Anti-Corruption Policy
3 Eletrobras Group Conflict of Interest Policy
4 Integrity Program Rules
5 Integrity Monitoring Rules
6 Eletrobras Group Consequences Policy
7 Rules on Managing and Addressing Reports and
Violations
Total (members/employees/business partners)
Total informed about Eletrobras’s anti-corruption
policies and procedures
Percentage informed about Eletrobras’s anti-corruption
policies and procedures
Total that received anti-corruption training
Percentage that received anti-corruption training
Itaipu – Total (members/employees)*
Itaipu – Percentage informed about anti-corruption
policies and procedures
Corporate
governance
bodies
Middle-
management
employees
Employees in
university-level
positions
Employees in
non-university
level positions
142
142
100%
125
88.03%
13
100%
1,090
1,085
99.54%
1,074
98.53%
120
100%
4,192
4,187
99.88%
3,937
93.92%
500
100%
7,245
7,230
99.79%
6,794
93.78%
656
100%
SPEs
54
53
98.15%
-
-
-
-
*Data for Itaipu have been presented separately as the company is subject to dual legislation as a bi-national corporation, and has its own anti-corruption policies and procedures.
Only members of governance bodies and employees undergo anti-corruption training.
The figures for the holding company and Amazonas GT relate to an Integrity & Culture of Ethics Course launched in December 2019, and were consolidated up to December 2020.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE ETHICS
SDG
16
We work continuously to build closer engagement with
our internal and external stakeholders. Employees, busi-
ness partners and other stakeholders can seek guidance
in our Code of Ethical Conduct & Integrity and in our
integrity rules and policies. The contact details of our
communications channels can be found on our webpag-
es, are provided during training sessions, and included in
awareness-raising materials. GRI 102-33
50
Listening to stakeholders
The General Obudsman’s Office was placed under the
Eletrobras Board of Directors in 2017. The Obudsman’s
Office has since reported to the Board of Directors on
a quarterly basis, and this is scheduled to continue in
2021 in accordance with the Board’s agenda.
The General Obudsman’s Office provides multiple
channels for receiving reports on concerns, including via
the Eletrobras Group website, by email, by telephone, by
letter, and by other methods.
In 2017 we implemented the Eletrobras Whistleblowing
Hotline, an external, central hotline for all Group com-
panies. The new hotline replaced the Ombudsman as
the channel for receiving whistleblowing reports.
The General Obudsman’s Office is open to both in-
ternal and external stakeholders, and reports can be
made on an identified basis, confidentially or anon-
ymously. In all three situations, the whistleblower’s
identity is kept anonymous.
The Whistleblower Report Handling macro-process
is managed by the Integrity System Committee (ISC),
which is responsible for applying any applicable disci-
plinary action and remediating internal controls and
processes after investigating a case.
Each case goes through a workflow that includes receipt
of the report (case recording and preliminary review),
investigation (if applicable), disciplinary action (if appli-
cable) and remediation of controls and/or processes.
The last step is providing feedback to the whistleblower.
For each report, an assessment is made not only of the
reported violation but also on opportunities for process
improvements and any required disciplinary action.
GRI 205-1
An independent firm is responsible for handling reports
on violations of our standards or other misconduct. This
firm receives and documents the reports received via
the Whistleblowing Channel, and submits them to the
General Ombudsman’s Office. The General Ombuds-
man Office classifies reports by level of priority and by
subject, and submits them to the Executive CSI Office.
Following receipt, the Executive CSI Office submits the
reports to the Eletrobras Group Report Investigation
Lead, who opens and investigates the case appropri-
ately. In 2020, a total of 542 cases were handled and
closed as part of this process. For every substantiated
report, the risk map is revisited in order to take action to
prevent recurrence.
During the year, the Obudsman’s Office handled 100
new cases relating to the holding company, including
requests for documentation and general information, of
which 98 were resolved. GRI 102-17
SDG
16
SDG
16
Whistleblowing Hotline
GRI 102-17
Handles reports on misconduct, made
anonymously or otherwise. Managed by an
independent third‑party firm.
https://canaldedenuncias.com.br/
eletrobras/
General Obudsman’s Office
For general requests, including requests for
information about the Eletrobras Group
Integrity Program and Code of Ethics &
Conduct. This channel is also used to submit
suggestions, complaints or compliments.
ouvidoria@eletrobras.com
Eletrobras Ethics
Committee
For queries relating to the
Code of Ethical Conduct &
Integrity.
eticaevoce@eletrobras.com
Eletrobras Integrity
Department
For queries relating to the
Integrity (compliance)
Program and related
policies and practices.
cgi@eletrobras.com
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Critical concerns GRI 102-34
Conflict of interests GRI 102-25
SDG
16
Critical concerns include violations of our Integrity
Program (Eletrobras 5 Dimensions) and the Eletrobras
Group Code of Business Conduct and Ethics.
The 4% reduction in the total number of concerns
reported in 2020 was due to the COVID-19 pandemic
and remote working, which prevented the ombudsman
offices from receiving in-person visits and from touring
our operations.
Of the 3,955 cases handled in 2020 (except whistleblowing
reports), 96% had been resolved as of 12/31/2020.
A total of 522 reports were handled by the Whistleblowing
Hotline, including 378 valid reports and 144 reports not within
the scope of the hotline.
Of the 378 valid reports received by the Whistleblowing Hotline
in 2020, 202 had been resolved and 176 were being addressed at
year-end.
The members of the Board of Directors
are responsible for monitoring and man-
aging any conflicts of interests involving
executives, other members of the Board
or shareholders, in order to prevent mis-
appropriation of assets or misconduct in
related-party transactions.
This topic is also addressed in the Eletro-
bras Group Conflict of Interest Policy. This
Policy outlines guidelines for the mem-
bers of governance bodies, employees,
representatives and contractors of Eletro-
bras Group companies on preventing,
identifying and reporting situations that
could create a conflict of interests. It also
provides guidance on what to do in the
event of a conflict of interests to ensure
our actions are guided by the principles
of ethics, integrity and transparency and
aligned with our values.
Before assuming executive directors
positions, appointees undergo an as-
sessment on integrity, including, among
other aspects, whether there are any
existing or potential conflict of interest.
This information is submitted to the
Management, People & Eligibility Com-
mittee, which is responsible for con-
ducting due diligence on appointments
to executive directors positions at both
Eletrobras Group companies and other
companies in which the Group has an
equity interest, majority or otherwise.
51
In 2020, we ran a campaign to raise
employee awareness about conflicts of
interest, our updated procedures, and
the Brazilian Office of the Comptrol-
ler General’s (CGU) Conflict of Interest
Prevention System (SeCi). Our workforce
also received a guide with practical
examples of situations that can create a
conflict of interests.
As a preventive measure, in 2020 all
employees and members of executive
directors were asked to complete a due
diligence questionnaire to enhance our
ability to identify and address potential
conflicts of interest. The goal is to map
out sensitive areas in the personal and
business relationships of employees and
members of executive directors, allowing
the Governance, Risk & Compliance De-
partment to act preventively by providing
guidance and mitigating issues.
SDG
16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE RISK MANAGEMENT
GRI 102-15, 102-29, 102-30, 103-2
RISK MANAGEMENT MODEL
GRI 103-2, 103-3
52
Eletrobras Group’s Integrated Risk Management
System aims to prevent events from materializing
which could adversely affect our strategic ob-
jectives and our ability to generate and preserve
value, and to provide transparent information to
the market and shareholders.
The risk management process at Eletrobras Group
is based on our unified Corporate Risk Man-
agement Policy, whose most recent edition was
approved by the Board of Directors in September
2019.
Risk management is centrally coordinated by the
holding company, which helps to provide an inte-
grated view of and standardize the process across
Group companies. The overall process is managed
by the risk management and internal controls
functions and risk committees at each Eletrobras
Group company, under the oversight of the hold-
ing company’s Risk Committee. Risk management
information is reported to the Executive Board and
Board of Directors via the Statutory Audit & Risk
Committee (CAE).
Within our risk management model, we identify
and compile a matrix of all business, operational,
financial and compliance risks to which Group
companies are exposed, and then address and
monitor those risks under action plans developed
by the relevant risk owners.
SDG
8
16
Identification
Identifying, classifying and pri-
oritizing the risks to which the
Company is or could be exposed
Monitoring
Monitoring risks
and the implemen-
tation and effec-
tiveness of mitiga-
tion measures
Communications
Clearly and objectively
reporting to stakeholders
on each stage of the risk
management process
and outcomes
Assessment
Qualitative and quan-
titative assessments of
the degree of exposure
to identified risks
Management
Deciding on whether to accept,
transfer, mitigate or avoid the
risks to which the Company is ex-
posed and—if the option is made
for mitigation—developing action
plans for implementation
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
In our risk management process, we
continuously monitor the business envi-
ronment to address our own concerns as
well as those of investors and the broader
market. The risks recognized as being
most material within Eletrobras Group
companies are prioritized and addressed
by implementing action plans prepared
based on technical recommendations
developed by the Corporate Risk Man-
agement and Internal Controls functions
in collaboration with business managers,
taking account of the level of exposure
validated by Management.
To further improve our approach to
managing identified risks, in 2020 we im-
plemented SAP GRC RM to automate the
risk assessment process. Also in the year,
Eletrobras approved our risk appetite
levels and the strategic KRIs to be tracked
under the PDNG 2021-2025.
SDG
8
16
Risk Appetite
Statement
Value creation is an imperative
for the Eletrobras Group.
Building industry leadership
through Generation &
Transmission investments
focused on clean energy is at
the core of our approach to
sustainable expansion.
We reject decisions which could
undermine our profitability, fi-
nancial discipline, corporate so-
cial and environmental sustain-
ability, ethics and compliance
standards, operational safety,
or the health and safety of our
direct or outsourced employees.
We recognize the importance of
innovating and investing in other
segments in order to build a di-
versified portfolio of businesses
and services that are synergistic
and aligned with our strategy.
53
The Angra II reactor building. Eletronuclear Archives
Risk Mapping
GRI 103-2, 103-3, 102-15, 102-29, 102-31
SDG
7 13
SDG
16
At Eletrobras Group companies, risks are identified and mapped in a
Corporate Risk Matrix with the participation of business managers at
different organizational levels at the Group companies.
See our Risk Matrix on the following page
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE BUSINESSES
FINANCIAL
Generation
Transmission
Electricity market
New Generation
Businesses
New Transmission
businesses
Generation
Works
Transmission
Works
Electricity
trading
Climate
change
Generation Asset Operation
& Maintenance (O&M)
Transmission Asset Operation
& Maintenance (O&M)
Partnerships
Generation Industry
Regulations
Transmission Industry
Regulations
SPE
management
Dam
Safety
Concession
extensions
Nuclear safety
Nuclear fuel
Storage of spent fuel
Management
& Innovation
Liquidity
R&D + I management
Cash flow
Information security
Credit
Counterparties
Indebtedness/
Leverage
Taxes
Tax
management
54
Market
Market
risk
Budget
Budget
Management
Assets
Regulatory
asset pricing
OPERATIONAL
COMPLIANCE
Social
& Environmental
ICT
People
Procurement
Project social and environ-
mental management
Availability and performance
of ICT systems
People
Management
Supply
chain management
Human
rights
Legal
Litigation
management
Occupational
Health & Safety
Pension
funds
Security
Property
security
Laws
and regulations
Fraud
and corruption
Adherence
to rules
Reporting
Financial
Statements
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Material risks
GRI 103-2, 103-3
Some of the risks in Eletrobras Group’s Corporate Risk
Matrix are recognized as being especially critical. Our
approach to addressing these risks is described below:
Project Social and Environmental
Management
Social and environmental risk assess-
ments are conducted during both the
pre-operational and the operational
phase of G&T projects at Eletrobras
Group companies in order to assess
exposure to social and environmental
risks and the effectiveness of mitigation
actions that have been implemented.
Eletrobras has a corporate Environ-
mental Policy that provides guidance
on addressing environmental and
social matters, including guidelines on
dealing with local communities and
traditional peoples, such as indigenous
communities.
Eletrobras Group companies conduct
watershed inventories, feasibility studies
and environmental impact assessments
to inform the development of siting and
project design options that can minimize
social and economic impacts and the
displacement of communities, as well as
impacts on biodiversity.
Compliance
The second dimension of the Eletro-
bras Group Integrity Program, which
aligns with our Corporate Risk Matrix,
establishes a process for periodically
assessing fraud and corruption risks
involving integrity and ethics issues.
We have worked to prevent, address
and remediate these risks by: devel-
oping and keeping up to date a set
of integrity standards; administering
training and awareness raising activi-
ties for direct and outsourced employ-
ees; and structuring a macro-process
for addressing whistleblowing reports
and violations—including investi-
gation, remediation and disciplinary
action—which feeds back into the
risk assessment process and supports
assessments of program effectiveness.
55
Climate Change
Climate change is the product of a
variety of natural factors. However, it
has been intensified in recent years by
increasingly invasive human activity.
The Eletrobras Group recognizes the
importance of control activities such as:
i) taking climate change considerations
into account in siting, designing and/or
redesigning generation and transmis-
sion projects; and ii) ensuring the effi-
cient management of and implementing
initiatives to offset GHG emissions
As part of our approach to addressing
climate change, we conduct:
• Carbon footprint assessments
• Carbon pricing studies
• Climate change vulnerability
assessments
• Scenario assessments incorporating
climate change
• Climate change adaptation studies
Training. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Human Rights
Eletrobras Group conducts human
rights risk assessments to identify ex-
posure to events, situations or practic-
es which could lead to the commission
of human rights violations directly
or indirectly by Group companies. A
number of steps have been imple-
mented to address these risks, includ-
ing the following:
• Establishing human rights indicators/
targets, such as training 100% of em-
ployees and Tier 1 suppliers on Human
Rights practices by 2021; GRI 410-1
• Conducting human rights due dili-
gence on 100% of critical Tier 1 suppli-
ers by 2022 and all SPEs by 2021;
• Incorporating human rights provisions
in supplier contracts and a termination
penalty in the event that suppliers fail to
adhere to Eletrobras’s values and com-
mitments on human rights;
• Using appropriate language in com-
munications materials about the social
and environmental impacts of our
projects when interacting with affected
communities, especially traditional and
indigenous peoples;
• Creating a Human Rights Sub-commit-
tee of representatives from the Corpo-
rate Social Responsibility functions of
Eletrobras Group companies to discuss,
develop and implement stakeholder en-
gagement programs in the supply chain
and raise awareness about human rights,
working to disseminate these practices
across Group companies and their value
chains, as part of the Sustainability 4.0
Program within the PDNG.
Nuclear Power
As an operator of nuclear power plants,
Eletronuclear is responsible for monitor-
ing and addressing risks related to nu-
clear power. Eletronuclear has an annual
budget earmarked for modernizing and
implementing the most recent safety
requirements at its plants. The company
recently conducted an extensive reas-
sessment of the risk associated with en-
vironmental issues and, in response, has
made minor adjustments to protection
barriers. In addition, Eletronuclear has
assessed its emergency preparedness
following the stress test procedures ad-
opted by the European Union for nuclear
plants under construction or in opera-
tion in Europe. As a result, Eletronuclear
has implemented several additional
safety measures.
56
100% of our
suppliers will
undergo human
rights due
diligence by 2022
The Angra II nuclear power plant. Eletronuclear Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 57
To mitigate these factors, Eletrobras invests continu-
ously in transmission line maintenance and condition
monitoring. Many substations are currently undergoing
upgrades of their monitoring and communications
infrastructure to automate and centralize parameter
monitoring and provide a systemic and integrated view
of assets in operation.
In addition, in order to mitigate the adverse impacts
from natural disasters on our assets, Eletrobras Group
companies have emergency response teams who are
highly trained and capable of promptly replacing priori-
ty operational equipment. These teams are immediate-
ly mobilized in the event of an emergency, supporting
our culture of operational excellence.
The Belo Monte Dam. Photo: Roney Santana
Dam Safety
Dam Safety is managed and monitored
locally by our subsidiaries to a high level
of technical and management excel-
lence. Dams and their appurtenant
structures undergo Periodic Safety Re-
views (RPS) in accordance with applica-
ble laws and regulations. In addition, as
a requirement established by the Board
of Directors, Periodic Safety Reviews of
our assets are also being conducted by
independent external appraisers.
Transmission
Eletrobras Group companies operate
substations and transmission lines
across diverse geographies with varying
climates. For the Group as a whole, the
most significant risk in transmission
operations is related to transmission line
and/or substation outages.
Hydropower
Eletrobras’s generation assets are
primarily hydroelectric plants, and
hydropower involves several related
risks. For the company as a whole,
the most important risk related to
hydropower is hydrological risk, or the
risk that the electricity generated by
hydroelectric assets operating within
the regulated market could fall below
their guaranteed capacity. This risk is
more likely to materialize in the event
of a drought. We work to prevent this
risk from materializing by renegoti-
ating hydrological risk and through
“electricity hedges".
GRI 303-1
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 58
O&M Risk in Generation:
O&M Risk in Transmission
The primary risk related to operation
and maintenance is the risk of an outage
due to operational failure. To mitigate
outage risks, Eletrobras has processes in
place for monitoring asset operation and
maintenance at subsidiaries.
Efforts to improve the availability and
efficiency of our assets include regular
upgrades of generation assets, digi-
tization and automation of manage-
ment processes, and investments in
training specialists.
O&M plans establish targets and activity
schedules for Eletrobras Group compa-
nies to ensure availability levels conform
to regulatory requirements and corpo-
rate targets.
At Eletrobras, transmission assets are
managed at a local level as with genera-
tion assets. The goal in managing trans-
mission assets is to ensure high levels
of system availability and reliability, and
compliance with industry regulations
and standards.
Our approach to managing operation
and maintenance risks for transmission
systems takes account of, among other
factors, the impacts of weather events
on the transmission operations of Group
companies. Assessments are conduct-
ed on the likelihood of occurrence of
windstorms, fires, cyclones, thunder-
storms, floods and lightning in the area
surrounding our transmission lines.
Based on these assessments, Eletrobras
Group companies implement measures
and emergency response plans to mit-
igate the impacts from these events on
our transmission assets.
Regulatory Changes in the Electric
Power Sector
Regulatory changes introduced by dif-
ferent government bodies could create
risks for Eletrobras Group companies.
Currently the primary regulatory risk
relates to potential changes and unfore-
seeable impacts from Public Consulta-
tion no. 33/2017, which aims to improve
the legal framework for the electric
power sector in Brazil.
Eletrobras has teams specializing in in-
dustry regulation to address these risks.
Through monitoring and participation in
public hearings, consultations, special-
ized forums and industry associations,
these matters are discussed in depth by
all Eletrobras Group companies, which
advocate for and influence regulatory
policy in a coordinated manner. The
primary source of reference in planning
regulatory efforts is the ANEEL Regula-
tory Agenda for 2021-2022
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Organizations of which we are members GRI 102-13
Business
management
8 16
• Brazilian Institute for Corporate Governance (IBGC)
• National Quality Foundation (FNQ)
• National Forum on Ethical Management of Government
Owned Companies
Business
sustainability
7 8 9 13 16
Industry
development
9 16
• Electric Power Trading Chamber (CCEE)
• Brazilian Association of Thermal Power Generation Compa-
nies (ABRAGET)
• Brazilian CIER (Regional Electricity Integration Commission)
Committee (BRACIER)
• Brazilian Dam Committee (CBDB)
• Brazilian Association of Large Electric Power Generation
Companies (ABRAGE)
• Brazilian Association of Large Electric Power Transmission
Companies (ABRATE)
• Brazilian Wind Power Association (ABE Eólica)
• Brazilian Nuclear Power Association (ABEN)
• World Association of Nuclear Operators (WANO)
• World Nuclear Association
Environment
7 13
Climate change
13
Water
7 13
Social
16
59
• Brazilian Business Council for Sustainable Development
(CEBDS) – we have a seat on the Council’s governance body
and co-lead working groups on Water, Energy and Climate
Change, Biodiversity and Biotechnology, and Social Impact
• Brazilian Global Compact Committee (CBPG) – We actively
participate in action platforms such as the Sustainable De-
velopment Goals (SDGs), Climate Change, Human Rights and
Communications and Engagement
• Global Reporting Initiative (GRI Community)
• Ethos Institute for Business and Social Responsibility
• Carbon Disclosure Project Benchmark Club (CDP)
• Environmental Forum for the Brazilian Electric Power
Sector (FMASE) – we have a seat on the forum’s governance
body and participate in subject-matter committees/projects
• Environmental Committee of the Brazilian Association of
Electric Power Companies (ABCE)
• Brazilian Forum on Climate Change (FBMC)
• Business for Climate (EPC)
• National Council on Water Resources (CNRH)
• World Water Council (WWC).
• Instituto Ethos Working Group on Human Rights
• Global Compact Working Group on Human Rights
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Our voluntary commitments
GRI 102-12
We have subscribed to national and in-
ternational initiatives addressing issues
related to business sustainability.
Social
As part of our voluntary commitments,
we have incorporated strategic guide-
lines on improving governance and
business integrity in the PDNG 2020-
2024, in line with the goal under our
Strategic Plan 2020-2035 to achieve
excellence in Governance, Risk Man-
agement and Internal Controls (GRC)
and uphold standards of corporate
governance and business integrity
that are consistent with international
benchmarks. GRI 103-2
SDG
9
• Sustainable Development Goals (SDGs):
nine SDGs are prioritized in our Business &
Management Master Plan (PDNG)
• Business for Human Rights, an open letter
published by the Brazilian Ministry of Human
Rights
• The Ten Principles of the UN Global Compact*
• Corporate Commitment to Addressing Sexual
Violence against Children and Adolescents
• Na Mão Certa, a program launched by the
World Childhood Foundation to combat
roadside sexual violence against children and
adolescents
• CEO Guide to Human Rights – World Business
Council for Sustainable Development (WBCSD)
• Women’s Empowerment Principles (WEPs)
The Tenth Principle of the Global Compact states that:
“Businesses should work against corruption in all its forms,
including extortion and bribery.”
60
Environmental
SDG
7
13
13
• Brazilian Business Commitment to Biodiversity,
launched by the Brazilian Business Council for
Sustainable Development (CEBDS)
• Brazilian Business Commitment to Water Security,
launched by the Brazilian Business Council for
Sustainable Development (CEBDS)
• Business Dialog with Indigenous Peoples Initiative
• Open Letter - Private Sector Support for Carbon Pricing
in Brazil, a position paper on carbon pricing mechanisms
• We are supporters of the Task Force on Climate-related
Financial Disclosures (TCFD)
• In 2020 we became an “Early Supporter” of Business
for Nature’s Call to Action to reverse nature loss by
2030. Initiatives like these are aligned with our goal to
be an active agent for conservation of biodiversity and
ecosystem services.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 61
STRATEGIC PLANNING
GRI 102-26, 102-31
Strategic planning is an exercise that identifies trends,
risks and uncertainties related to our business. The
estimates and assumptions informing our strategic
planning reflect our expectations about current and
future events and financial and non-financial trends
over a horizon of 15 years.
In 2020—an unprecedented year that posed numer-
ous challenges to countries around the world—we
developed and unveiled our Strategic Plan 2020-2035
which, in addition to defining a new corporate identi-
ty (Purpose, Vision and Values, page xx), establishes a
set of guidelines and objectives aimed at our growth
and modernization in line with emerging trends in the
power sector.
The Strategic Plan is subdivided into Business &
Management Master Plans (PDNG) with a short/medi-
um-term horizon of five years. The PNDGs outline the
specific projects and initiatives to be implementation
by Eletrobras Group companies to achieve our strategic
goals, targets and related SDGs.
PDNG 2021-2015
GRI 102-31, 102-34
PDNG 2021-2025 is the first sub-plan under our Stra-
tegic Plan 2020-2035. Drawing on analysis and guid-
ance in the Strategic Plan, PDNG 2021-2025 is focused
on further developing our businesses and building on
our efforts in recent years to improve performance.
SDG
7 13
16
PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
Related
SDGs
• Widespread digitization of the economy
and society
• Knowledge and innovation as economic
drivers
• Changes in consumer patterns and empow-
ered customers
• Climate change and shifts in rainfall patterns
• Expansion of the low carbon economy
• Growing demand for electricity
• An expanding and increasingly complex
electric power grid
• Shifts in the power sector requiring new
business models
VALUE
AND INVESTMENT
Enhance value cre-
ation and strength-
en our capacity for
investment
MARKET VALUE
Enterprise Value /
EBITDA
• Dividends
• Contribution to sustainable
development
• Return on invested capital
• A stronger brand and rep-
utation
Risks
• Shareholder divest-
ments
Costs
• Higher debt service
costs
8 9
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
• Knowledge and innovation
as economic drivers
• Widespread digitization of the economy
and society
• Shifts in the power sector requiring new
business models
• Fast-paced technological change
CULTURE & PEOPLE
Develop a
meritocratic culture of
high performance and
excellence in people
management
SAFETY
Injury Frequency Rate
(Direct and Third-Party
Employees)
PEOPLE
Hours of training / no. of
employees
PEOPLE
Employee Satisfaction
Rate (Survey to be
carried out in 2021 and
target set for 2022)
• A stronger brand and
reputation
• Jobs and income
• Health and safety
• Quality of life
• Respect for human rights
• Professional development
and training
• Greater diversity
• Shifts in the power sector requiring new
business models
• Calls for greater transparency
• Implementation of more effective controls
that inspire market confidence
• Preventive risk management
• A zero-tolerance approach to corruption
GOVERNANCE
Achieve excellence
in Governance. Risk
management and
internal controls (GRC)
GOVERNANCE
ELB’s listing tier on B3
• Returns on invested capital
• A stronger brand and
reputation
• Integrity (ethical, lawful and
transparent conduct)
Risks
• Low productivity
• Talent flight
Costs
• Injury and sick
leave
• Labor claims
• High investment
but low returns
on training and
education initiatives
Risks
• Reputational
• Shareholder
divestments
Costs
• Loss of company
value
• Higher debt service
costs
• Fines and penalties
for Eletrobras and
our management
62
SDG
members
8 10 12
8 10 12
11 16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
63
SDG
members
• Widespread digitization of the economy
and society
• Knowledge and innovation as economic
drivers
• Changes in consumer patterns and empow-
ered customers
• Growing demand for electricity
• Shifts in the power sector requiring new
business models
MANAGEMENT
Focus management
on value creation and
increasing competi-
tiveness
PRODUCTIVITY
Results of Operations /
employee
• Return on invested capital
• A stronger brand and rep-
utation
• Dividends
• Greater diversity
• Respect for human rights
• Private Social Investment
• Sponsorship of culture,
sport and events
• Supplier capacity building
• Procurement predictability
• A more sustainable supply
chain
Risks
• Low efficiency (slow
to respond)
Costs
• Higher operating
costs
8 9 10
11 12
• Widespread digitization of the economy and
society
• Knowledge and innovation as economic
drivers
• Changes in consumer patterns and empow-
ered customers
• Fast-paced technological change
INNOVATION & DIG-
ITAL TRANSFORMA-
TION
Achieve leadership in
innovation and ad-
vance a digital trans-
formation of business
and management
processes
INNOVATION
R&D+I Investment /
NOR
• Return on invested capital
• A stronger brand and rep-
utation
Research, Development &
Innovation
• Dividends
• Energy Savings
• Conservation of Biodiversity
Risks
• Reduced competi-
tiveness
Costs
• Higher costs with
the state-of-the-art
technologies needed
for sustainable oper-
ations.
7 9 11
12 13 15
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
• Growing demand for electricity
• Systemic improvements in energy efficiency
• Shifts in the power sector requiring new
business models
• Fast-paced technological change
• Lower costs on critical inputs
G&T EFFICIENCY
Create value through
more efficient G&T
assets
EFFICIENCY: PMSO/Reg.
PMSO
GENERATION-ASSET
AVAILABILITY:
GRAVAILAB
TRANSMISSION-ASSET
AVAILABILITY:
TLAVAILAB
• Contribution to sustainable
development
• Returns on invested capital
• Energy savings
• A stronger brand and rep-
utation
• Operational safety and reli-
ability (energy security)
• Affordable electricity
Revenue reliability
Risks
• Failure
to reduce emissions
through sustainable
development
Costs
• Higher operating
costs
64
SDG
members
7 9 12
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
• Expansion of the low carbon economy
• Growing demand for electricity
• An expanding and increasingly complex
electric power grid
• Diversification of Brazil’s energy mix
• Expansion of distributed generation
• Lower costs on critical inputs
G&T EXPANSION
Achieve leadership in
G&T, with a focus on
clean energy
GENERATION
EXPANSION
Installed G Capacity
(MW)
TRANSMISSION
EXPANSION
Installed T Capacity (KM)
• Contribution to sustainable
development
• Return on invested capital
• Access to electricity for all,
with a reduced risk for social
and environmental impacts
• Affordable electricity
• Energy savings
• Partnership in managing
government programs
• Operational safety and
reliability (energy security)
• Improvements to national
infrastructure
• Jobs and income
• Respect for human rights
• Conservation of Biodiversity
• Better living conditions in
affected communities
• Participatory dialog
• Participation in structuring
projects
• Integrity (ethical, lawful and
transparent conduct)
• A more sustainable supply
chain
Risks
• Stakeholder
scrutiny
• Impacts on
biodiversity
• Impacts on
livelihoods in
surrounding
communities
• Displacement
of residents in
surrounding
communities
• Shareholder
divestments
65
SDG
members
7 9 11
12 13 15
16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
PDNG 2021-2025 STRATEGIC TOPICS
Local and global trends
Guidelines
Performance indicators
VALUE expectations
Impacts
• Changes in consumer patterns and
empowered customers
• Growing demand for electricity
• Shifts in the power sector requiring new
business models
• Demand for high performance
TRADING
Achieve leadership
in electricity trading,
with attractive
margins and efficient
risk management
MARGIN
Margin over benchmark
price in the loss-
of-entitlement
(descotização) process
• Return on invested capital
• A stronger brand and
reputation
• Dividends
• Revenue reliability
• Fairly priced (sustainable)
contracts
Risks
• Shareholder
divestments
Revenue
• Reduced Operating
Revenue
66
SDG
members
9
• Market demand for a renewable, clean
energy mix;
• Demand for increased energy efficiency.
• Greater attention to the risk of climate
change and impacts on biodiversity.
• Demand for innovation and development of
new technologies
NEW BUSINESS
Invest in new
businesses,
especially in energy,
participating in the
current consolidation
in the industry (M&A)
REVENUE
New-Business Revenue
/ NOR
• Contribution to sustainable
development
• Return on invested capital
• Access to electricity for all,
with a reduced risk for social
and environmental impacts;
• Affordable electricity; and
• Energy savings
• A stronger brand and
reputation
• Improvements to national
infrastructure
• Jobs and income
• Dividends
Risks
• Failure to capture
new business and
portfolio expansion
opportunities
Revenue
• Failure to increase
Operating Revenue
8 9 13
The strategic guidelines and strategic objectives in SP 2020-2035
have been translated into a set of strategic initiatives outlined in
PDNG 2021-2025, as well as targets for the first year of the current
cycle. Link PDNG 2021-2025.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
PDNG 2020-2024
PDNG 2020-2024, the most recent sub-plan under our
Strategic Plan 2015-2030, outlines strategic guidelines
that translate our purpose and ambition: Leverage, Gov-
ernance, People and Efficiency. This strategic sub-plan
converges toward and supports the key goals in Chal-
lenge 24 – Sustainable Excellence.
Sustainable business
To be recognized as a socially, environmentally and financially
responsible G&T company
Net debt/Adjusted EBITDA (EBITDA
w/o existing Backbone systems)
Net debt/Adjusted EBITDA (EBITDA
with existing Backbone systems)
2019
2.20
Results
2020
Target
2020
2.80
<2.50
1.60
1.45
<2.50
Strategic objective
Key achievements
• Optimize indebtedness to interna-
tional standards.
Initiative
• Optimization of Ownership Interests
* SPE TDG - Sociedade de Propósito
Específico Transmissora Delmiro Gouveia
** TSBE - Transmissora Sul Brasileira de
Energia
• SPEs sold (Centroeste, MTE and
Mangue Seco 2, Campos Neutrais
Complex (Hermenegildo I, II and III, and
Chuí IX) and Santa Vitória do Palmar
(18 SPEs)
• Eight SPEs wound up (Energia Olím-
pica, Carnaúba I, II, III, V, Cervantes I
and II, and Punaú I)
• Mergers of SPE TDG* , TSBE**, the
Famosa III wind farm cluster (compris-
ing 5 SPEs) and the Acaraú wind farm
cluster (comprising 2 SPEs).
67
Challenge 24:
Sustainable excellence
In a year that defied all expectations, we made remark-
able progress under PDNG 2020-2024.
Operating efficiency
Achieve operating excellence across the value chain
PMSO1/Regulatory PMSO
1. People, materials, services and other expenses.
2019
1.24
Results
2020
1.09
Target
2020
1.00
Strategic objective
Key achievements
• Adjust the operating and corporate
cost structures at Eletrobras Group
companies.
Initiative
Angra III Project
• Approval by the Investment Part-
nership Program Board (CPPI) of the
BNDES report recommending the
business model to be adopted for
completion of the project
• Eletronuclear completed a capital
increase of R$ 1,886 million through
a conversion of AFAC* credits of
R$ 850 million and financing credits
of R$ 1,036 million, both belonging
to Eletrobras
• AFAC of R$ 1,052 million and R$
2,447 million awarded to Eletronuclear
for 2020 and 2021, respectively
*AFAC - Advance for Future Capital Increase
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Valuing people
Develop and strengthen technical and technology skills, valuing employees
and fostering a high performance culture.
Enhance governance and corporate integrity
Strengthen internal controls and corporate governance,
ensuring corporate integrity.
Lost-time injury
frequency rate (direct and
outsourced employees)*
Results
2020**
1.14
Target
2020
2.48
* As per the PDNG, in 2020 Itaipu and CEPEL were excluded from the injury rate calculations.
** Only direct employees were included and this prevented a comparison from being made
with the target, as it also included outsourced employees.
Strategic goals
Key achievement
• Promote a high-performance cul-
ture, knowledge management and
recognition
• Improve employee safety and
well-being
A consulting firm completed a meth-
odological framework and assessment
of the organizational culture at Eletro-
bras and our subsidiaries
Initiative
Implementation of a high-perfor-
mance culture
68
Target
2020
0
2019*
Results
2020
No. of material
weaknesses
* Refers to the number of material weaknesses related to internal controls reported in
Eletrobras’s 2019 Form 20-F to the Securities and Exchange Commission.
N/D
4
Strategic goals
Initiative (2)
• Improve internal controls and risk
management, increasing transparency
and reliability
Occupational Health & Safety Program
• Strengthen corporate integrity
Key achievement
Initiative (1)
Qualitative and Quantitative Staffing
Definitions—Phase 2
Engaged consultants specializing in
occupational health and safety man-
agement
Initiative (3)
Key achievement
Implementation of Zero-Based Bud-
geting
Designed an organizational restructur-
ing of the holding company and sub-
sidiaries to be implemented in 2021
Key Achievement
Completed initiatives in October 2020
that will deliver savings of R$ 216.9 mil-
lion across Eletrobras Group companies
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
69
The Peixe Angical Dam. Furnas Archives.
Prosperity
CAPITALS
TOPICS:
CYBERSECURITY AND DIGITAL TRANSFORMATION
ELECTRICITY SUPPLY
RESEARCH AND DEVELOPMENT + INNOVATION
SUPPLIER RELATIONS
FINANCIAL PERFORMANCE
ENERGY TRANSITION
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE PROSPERITY
Prosperity describes the
ambition to ensure that
all human beings can
enjoy prosperous and
fulfilling lives and that
economic, social and
technological progress
occurs in harmony with
nature. The United
Nations describes
prosperity in terms of
equitable economic
growth, built upon decent
employment, sustainable
livelihoods, rising real
incomes, social protection
and access to financial
services for all people.
It also emphasizes the
importance of innovation
and transforming
business models to create
shared value.
FINANCIAL PERFORMANCE
GRI 103-2, 103-3, EU22
70
The Board of Directors’ primary goal in
financial management is reducing net
debt. Our approach to this end has been
to lengthen debt maturities and reduce
overall debt service costs. The metric
we use to measure success in reducing
indebtedness is the ratio of Net Debt
to recurring EBITDA, which in 2020 was
1.5.
As part of these efforts, we successfully
completed, among other transactions,
an international notes offering that
rolled over debt maturing in October
2021 to 2025, at lower interest rates.
Other transactions helped to strength-
en our cash flows, which was provi-
dential amid the pandemic and the
challenging economic climate in the
year. We completed the conversion of
an Advance for Future Capital Increase
(AFAC) made by the Federal Govern-
ment in 2016. The Special Purpose En-
tities (SPEs) in which we have an interest
were also benefited by a temporary, six-
month suspension of interest collection
by the Brazilian Development Bank
(BNDES), positively affecting Group
companies’ cash flows.
In early January 2020, we completed a
corporate reorganization that created
Companhia de Geração e Transmissão
de Energia Elétrica do Sul do Brasil
(CGT Eletrosul), a public generation and
transmission company resulting from
a merger of two Eletrobras subsidiaries
in the South: Eletrosul and CGTEE. The
merger process was initiated in 2017 un-
der our Business & Management Master
Plan (PDNG). The goal in the merger was
to expand and integrate operations, and
deliver consistent operational synergies
and efficiency improvements, as well as
strong financial activation.
We completed a
reorganization
that created CGT
Eletrosul
We also continued the debenture issue
program for Eletrobras Eletronorte and
Amazonas GT in connection with the
merger of the latter into the former.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Optimizing our SPE portfolio
GRI 102-10
Consistent with the guidelines under PDNG 2020-
2024, the Eletrobras Group has undertaken several
initiatives to improve the efficiency of our generation
and transmission assets. These initiatives have included
efforts to optimize the number of Special Purpose
Entities (SPEs) in which Eletrobras holds equity interests.
On September 27, 2018 we sold a total of 26 SPEs in
Auction 01/2018, including 16 generation SPEs and 10
transmission SPEs. The auction generated proceeds of
R$ 1.3 billion for Eletrobras. On July 30, 2019, Eletrobras
completed Competitive Disposal Procedure No. 01/2019
for the disposal of 39 SPEs. Of these, 24 SPEs were sold
throughout 2020, including 23 generation SPEs and 1
transmission SPE, yielding proceeds of approximately R$
900 million for the Company.
In addition to the disposals described above, in 2020 ,
as part of our SPE Optimization program, we completed
the sale of a final SPE in Auction 01/2018, we merged
nine SPEs and we wound up another 8, for a total of 42
transactions in the year. As a result, the number of SPEs
held by Eletrobras Group companies was reduced from
136 at December 2019 to 94 at December 2020—92 in
Brazil and 2 in other countries.
SDG
16
71
The gains in transmission, in turn, were
partially offset by losses in generation
due to the operating inflexibility of the
Candiota III plant, negative variable rev-
enue of respectively R$ 205 million and
R$ 267 million as a result of the extend-
ed shutdowns of Angra I and Angra II,
and the termination of existing electric-
ity contracts on the Regulated Market by
Furnas and Eletronorte (319 aMW and
362 aMW, respectively), although gen-
eration revenue from plants under the
physical guarantee quota scheme creat-
ed by Law no. 12 783/2013 increased by
R$ 433 million, reflecting the annual rate
adjustment.
International Financial Reporting
Standards (IFRS) EBTIDA declined slightly
from R$ 11,4741 million in 2019 to R$
10,487 million in 2020. Recurring EBITDA
fell in tandem from R$ 14,268 in 2019 to
R$ 13,978 million in 2020. For further
details about Eletrobras’s financial
performance, read our financial reports.
Note 1 – Operating revenue for 2019 has been
restated.
GRI 102-48
SDG
7
8
16
Results
GRI 102-7, 103-3
We reported consolidated net income of
R$ 6,387 million in 2020, down from R$
11,133 million in 20191. It is important
to note that the Net Income reported in
2019 included Net Income from continu-
ing operations of R$ 7,848 million and net
income of R$ 3,285 from discontinued
operations (distribution), including the
now-privatized Amazonas Energia, which
is no longer consolidated in Eletrobras.
Had only net income from continuing
operations been taken into account, the
decrease would have been slightly smaller
at R$ 1,461 million, primarily reflecting
provisions and unscheduled shutdowns
of power plants. Cumulative net income
over the last three years amounted to
more than R$ 30 billion. Return on equity
(ROE) was 8.7%.
Despite the COVID-19 pandemic in
2020, the Eletrobras Group ended the
year with consolidated cash on hand of
R$ 14.3 billion.
Net Operating Revenue was R$ 29,080
in 2020, a decrease of 2% compared to
29,714 in 2019 ¹, partially offset by Net
Operating Revenue gains in transmis-
sion reflecting the Periodic Rate-Setting
Review in July 2020.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Operating revenue
GRI 102-7
SDG
7
8
16
GROSS REVENUE, TOTAL AND BY BUSINESS (IN R$ MILLION)
Year
2018
2019
2020
Total
30,876
35,675
35,228
Generation
Transmission
Other revenue
20,139
23,374
22,270
9,868
11,533 ¹
12,248
869
769
711
• Base Payment is the monthly (1/12) fraction of the annual revenue of a transmission asset
Note 1 – Operating revenue in Transmission has been restated. GRI 102-48
72
Operating costs and expenses
Operating costs and expenses were R$
26,372 million in 2020, an increase of
25% over 2019. This includes elec-
tricity purchased for resale, grid usage
charges, fuel purchased for power gen-
eration, construction costs and PMSO
(Personnel, Materials, Services and
Other) expenses.
Grid usage charges increased by 10%
(from R$ 2,265 million in 2019 to R$
2,500 million in 2020), primarily as
a result of a shift from Transmission
System Usage Charges prevailing
from January to June 2019 under
ANEEL Authorizing Resolution 2,409
(6/26/2018) to the rates prevailing
from January to June 2020 under
ANEEL Authorizing Resolution 2,562
(6/25/2019).
The cost of electricity purchased for
resale increased in the year primarily
as a result of new short-term contracts
concluded to reduce negative exposure
in the Electric Power Trading Chamber
(CCEE), due to the higher prevailing
contractual prices on products, and price
adjustments under existing purchase
agreements.
PMSO and Provision figures are detailed
below
PERSONNEL, MATERIALS, SERVICES AND OTHER EXPENSES (R$ MILLION)
Personnel
Materials
Services
Other expenses
Total PMSO
2019
- 5,828
-280
-2,171
-1,572
-9,850
2020
-4,743
-274
-1,963
-2,197
-9,176
Change (%)
-19%
-2%
-10%
40%
-6.8%
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Finance revenue (expense)
Finance Revenue (Expense) in 2020
was an expense of R$ 159 million, down
from finance revenue of R$ 423 million
in 2019.
73
Cost and budget management
In 2019 we initiated a zero-based
budgeting (ZBB) program that will
strengthen our culture of cost management
and transparency. This is a budgeting
methodology that aims to optimize costs
by allocating budget based on strategic
objectives and allowing expenses to be
carefully monitored. In 2020 we updated
our budget development and management
processes based on this methodology. We
also implemented a number of initiatives to
reduce operating expenses. Our budgeting
cycle in 2021 (to develop the budget for
2022) will be the second using the ZBB
methodology.
The ultimate goal of the ZBB program is
to implement a culture of efficient and
responsible use of Company funds, consistent
with the requirements and goals of the
Eletrobras Group.
Capital expenditure in 2020 across the
Eletrobras Group was a total of R$ 3.12
billion, or 59.1% of the budget for 2020,
including R$ 3.01 billion in corporate
investments and R$ 114 million in
partnership investments.
Equity income in affiliates
2019
R$ 1,041 million
Equity income in Companhia de Transmissão de Energia Elétrica
Paulista (CTEEP) rose to approximately R$1,100 million as an
effect of the Periodic Rate-setting Review (RTP) in 2020.
2020
R$ 1,671 million
Up
60%
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Financial discipline
NET DEBT/EBITDA
Target
NET DEBT
ADJUSTED EBITDA
< 2.5
21.0
20.3
2.2
1.6
2.8
1.5
2019
2020
Net debt
Net debt/EBITDA ex-RBSE
Net debt/EBITDA with RBSE
STATEMENT OF INCOME
(R$ MILLION)
DRE
Generation Revenue
Transmission Revenue
Other Revenues
Gross Revenue
Deductions from Revenue
Net Operating Revenue
Electricity for resale, grid usage,
fuel and construction
Personnel, Materials, Services and Other
Depreciation and Amortization
Operational Provisions
Effect of Periodic Rate-Setting Review
Equity interests
Other Revenue (Expenses)
Financial Income/Loss
Net income before tax
Income Tax and Social Contribution
Net Income for the Year
Income (Loss) Net of Taxes from Discontinued
Operations
NET INCOME FOR THE PERIOD
* Some information for 2019 has been restated. GRI 102-48
2019 ¹
23,374
11,533*
769
35,675*
-5,961
29,714
- 7,450
-9,850
-1,807
-2,006
8,601
0
1,041
25
9,667
-2,449
7,218
631
7,848
3,285
11,133
74
2020
22,270
12,248
711
35,228
-6,148
29,081
-7,959
-9,176
-1,863
- 7,374
2,709
4,228
1,671
16
8,624
-1,672
6,953
-565
6,387
0
6,387
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Distribution of added value (R$ million)
GRI 201-1
2019
5,397
4,158
9,438
11,133
2020
4,743
4,880
5,098
6,387
Personnel
Taxes
Third parties
Shareholders
SDG
8
75
Taxes GRI 207-1, 207-2, 207-3
SDG
16
Recognizing the importance
of taxes for the country as a
source of government revenue,
for fiscal policy, and for macro-
economic stability, it is a
practice at Eletrobras to ensure
taxes are paid on a timely basis
We strategically influence
our value chain take a similar
approach and pay taxes ethically
and transparently, recognizing
the importance of timely paid
taxes for government programs.
In 2020, Eletrobras Group
companies generated
approximately R$ 4.9 billion in
Federal, state and municipal
taxes through value creation.
By complying with tax
legislation, we demonstrate
respect for our stakeholders,
and by promoting good tax
practices we are supporting
efforts against tax evasion.
Eletrobras Group’s Chief
Financial & Investor Relations
Officer is responsible for
developing tax strategies and
policies, and integrating them
into our culture.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 76
Capital market GRI 102-10
To learn more, visit the Eletrobras website.
Our shareholder base expanded significantly in the
year from approximately 51,000 in 2019 to 139,800 in
2020.
SDG
16
Green bonds
Eletrobras received a Second Party Opinion (SPO) in 2020 to issue
green bonds to finance wind and solar farm projects. The SPO was
issued by Vigeo Eiris following an assessment on environmental, social
and governance aspects. We ranked 1st place in the electric power and
gas sector in emerging markets, and 40th out of the total universe of
companies assessed by the organization.
Eletrobras has common and preferred shares traded
on the Brazilian stock exchange (B3) under the ticker
symbol “ELET3”, and class “B” and “A” common and
preferred shares under the ticker symbols “ELET6” and
“ELET5”, respectively. On the New York Stock Exchange
(NYSE), our shares are traded through a Level II ADR
program under the ticker symbols “EBR” and “EBR-B”.
On the Madrid Stock Exchange (Latibex), our stocks are
traded via the Latibex Program under the ticker sym-
bols “XELTO” and “XELTB”.
In 2020 our stock performance on B3 positively re-
flected the successful execution of PDNG 2020-2024,
including the disposal of SPEs, our debt restructur-
ing measures, and cost reduction initiatives, such as
voluntary severance plans. This was offset, however,
by the effects from the COVID-19 pandemic and the
turbulent political and economic environment in
Brazil and globally, which affected the capital market
as a whole.
Unprecedentedly, circuit breakers were triggered on
6 (six) occasions in March 2020, halting trading on
B3. Our stock value also fluctuated in response to
developments surrounding a bill to privatize Eletro-
bras (Bill no. 5 877/1209, “PB”), which was submitted
by the President of Brazil to the National Congress
on November 05, 2019 and has yet to be passed into
law. On February 23, 2021 Executive Order no. 1031,
which also concerns our privatization, authorized the
initial modeling of the transaction by the Brazilian
Development Bank (BNDES) and introduced certain
amendments into the PB.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE OPERATING PERFORMANCE
GRI 102-2, 103-2, 103-3, EU1
SDG
7
9
We ended 2020 with an installed generation capaci-
ty of 50,648.20 MW, or 29% of Brazil’s total installed
capacity of 174,412.68 MW. This makes Eletrobras
Group a key contributor to one of the most renewable,
low-greenhouse gas (GHG) energy mixes in the world.
Our assets are operated to high standards of excellence
and availability, ensuring an efficient, reliable supply of
electricity. Some of our generation facilities have black
start capabilities, meaning they are able to recover
from a shutdown without an external source of supply
to their auxiliaries. If black starting fails, these plants
have at least a second—and often a third—redundant
source of supply depending on the plant’s strategic
importance for restoring power on the National Grid.
Following an outage in which consumer loads are
disconnected, their reconnection is managed by the
National Grid Operator (ONS). The ONS establishes pri-
ority patterns in restoring power (ONS Grid Procedures,
Submodule 5.13).
We operate 29% of Brazil’s
installed generation
capacity
77
97% of our installed
capacity derives from low-
greenhouse gas energy
sources
Generation
In generation, we operate in the Regulated Market
(including the quota system), the Free Market and the
Spot Market. Out of Eletrobras’s total generation assets,
61.2% are wholly owned, 23.1% are owned via Spe-
cial Purpose Entities (SPEs), and 15.7% are co-owned,
including half of the installed capacity of Itaipu Bina-
cional (7,000 MW).
Approximately 97% of our installed capacity derives
from low-greenhouse gas (GHG*) energy sources. At
12/31/2020, out of Brazil’s total low-GHG installed
capacity, 53% or 70.2 GW was owned by Eletrobras.
In 2020 an additional 277 MW in installed capacity was
brought online, including 40 MW from the Caititu 2 and
3, Carcará and Corrupião 3 wind farms within the Pin-
daí I wind farm cluster; 123 MW from the Fortim wind
farm cluster; 24 MW from the Casa Nova A wind farm;
and approximately 90 MW from Eletrobras Eletronor-
te’s Santana, Santana II and Santa Rita thermal power
plants. This was offset by the decommissioning of Am-
azonas GT’s Mauá Block III and IV thermal power plants,
with an installed capacity of 260 MW.
* Includes hydro, wind, solar and nuclear.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE CHANGES IN INSTALLED CAPACITY (IN MW) GRI EU1
Net generation (in GWh)*
GRI EU2
78
.
0
0
7
1
6
9
3
,
.
0
0
5
9
0
9
3
,
.
0
0
4
8
1
0
1
,
.
0
0
8
4
0
2
1
,
.
4
5
4
4
9
8
3
,
*
*
*
.
6
6
3
0
7
1
1
,
Net generation by source
2018
2019
2020
Solar
Wind
Hydro
Natural gas
Uranium
Coal
Oil
Total
1
3,874
1
3,402
1
3,404
154,193
156,739
172,074
5,516
15,675
1,490
2,497
6,585
16,127
1,668
503
5,726
12,866
1,100
12
183,246
185,025
195,183
2018
Corporate*
SPEs
2019
2020**
* Wholly owned, co-owned (including Itaipu Binacional) and SPE-owned plants.
Total generated electricity includes generation by plants that were operational throughout the year but at year-end were
no longer owned by Eletrobras and no longer included in our installed capacity.
Note: * Including Itaipu (7,000 MW belonging to Eletrobras)
**Includes Eletronorte’s Senador Arnon Afonso Farias de Mello thermal power plant (85.99
MW), currently free-leased to Roraima Energia S.A, the successor of Boa Vista Energia S.A.
* Includes FURNAS’s Roberto Silveira (Campos) thermal power plant (25 MW), which has
been taken out of commercial operation under ANEEL Resolution 708/2019.
***Our disposal of SPEs has reduced the installed capacity owned by Eletrobras Group
Companies by 507 MW.
AVERAGE AVAILABILITY FACTOR BY ENERGY SOURCE (%) GRI EU30
Hydro
95.78
96.48
96.74
Natural Gas
84.93
91
85.38
Coal
51.01
92.77
68.10
Oil
99.80
0
99.32
Uranium
93.04
92.80
90.36
Wind
92.69
94.29
96.81
Solar
98.26
99.30
99.27
2020
2019
2018
ANNUAL AVERAGE THERMAL GENERATION
EFFICIENCY BY SOURCE (%) GRI EU11
Coal
34.64
34.96
37.00
Uranium
35.43
37.70
35.60
Natural Gas
45.77
44.30
37.98
2020
2019
2018
Notes:
- Wholly owned, co-owned (including
Itaipu Binacional) and SPE-owned plants
- In 2019, the availability of oil-fueled
thermal power plants was not determined.
*Based on the average efficiency of Eletrobras-owned plants. The
2020 report, and the two previous reports, exclude oil-fueled plants
from the availability figures.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
79
ARGER Program Eletrobras’s
ARGER Program Eletrobras’s Autono-
mous and Resilient Generation Assets
(ARGER) Program is a strategic initiative
under PDNG 2021-2025 that aligns
with our strategic goal to create value
for the business by increasing the effi-
ciency of generation and transmission
assets. By modernizing our assets, we
are working to minimize outage risks in
our generation operations and building
resilience into the system. We are also
pursuing initiatives to develop a culture
of excellence in asset management.
Transmission
GRI 102-2, 102-6, 103-2, 103-3
We ended 2020 with a total of 76,128.54
kilometers (km) of transmission lines
**, including 9,127.41* corporate km
not renewed; 57,303.17 corporate
km under Operation & Maintenance
agreements, renewed pursuant to
Law No. 12 783/13; and 9,697.96 km
corresponding to our stakes in projects
developed by the Eletrobras Group via
SPEs. The Permitted Annual Revenue
(RAP) of our corporate transmission
system was R$ 13,404 million, with this
transmission system comprising 66,431
km of corporate transmission lines.
Including only transmission systems
with a voltage level equal to or greater
than 230 kV—i.e. only ±800, 750,
±600, 525/500, 345 and 230 kV
transmission lines—Eletrobras operates
A substation at the Itaipu Dam. Photo by Caio Coronel
a total 70,091.89 km, or 43.54% of
transmission lines in Brazil at these
voltage levels.
In the year, 396.46 km of new corporate
transmission lines were under
construction. Permitted Annual Revenue
(RAP) for all 79 large-scale projects (24
transmission line and 55 substation
projects) in progress in the year was R$
290.63 million.
The transmission business contributed R$
819 million in added Group Net Revenue
through Permitted Annual Revenue from
new Backbone assets (RBNI) and the
effects from the 2018-2023 Periodic
Rate-setting Review in July 2020, which
applied retroactively to 2018.
Operational availability, a manageable
technical variable, is calculated
based on the number of outages of
transmission lines operated by the
Eletrobras Group, including both
outages caused by failures and
faults and outages for preventative
and corrective maintenance. This
indicator is used to measure the O&M
performance of our assets.
*Note: The 9,127.41 km of corporate transmission
lines include assets not affected by Law no. 12
783/2013, including transmission lines for which
remuneration is linked to the exclusive use of a
given generator or connections to large consumers.
** Since 4Q20, the length of direct-current trans-
mission lines has been accounted for by center
rather than by section, for consistency with the
method of accounting used by the Brazilian Ministry
of Mining and Energy.
SDG
7
9
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE TRANSMISSION LINE EXPANSION BY TYPE OF PROJECT EU4
(KM)
2020*
2019
2018
2017
2016
2015
9,698
7,015
7,589
7,851
6,629
6,028
66,431
64,138
63,479
68,833
63,572
62,409
Corporate
SPE
The accounting criteria adopted in 4Q20 for direct-current transmission lines,
which are now computed by center, correspond to an additional 4,979.51 km of
transmission lines, including 1,612 km of directly owned and 3,367.51 km of SPE-
owned (equity-accounted) transmission lines.
80
In 2020, 396.46 km
of new corporate
transmission
lines were under
construction
OPERATIONAL AVAILABILITY RATE IN TRANSMISSION1,2 EU6
(%)
2020
2019
2018
99.94
99.95
99.90
Operational availability, a manageable technical
variable, is calculated based on the number of
outages of transmission lines operated by the
Eletrobras Group, including both outages caused
by failures and faults and outages for preventa-
tive and corrective maintenance. This indicator
is used to measure the O&M performance of our
assets.
reported Operational Availability rather than
Overall Availability. The figures for 2018 and
2019 have accordingly been adjusted to refer to
Operational Availability. GRI 102-48
Note 2: This indicator is inclusive of all Backbone
transmission lines (voltage >= 230 kV) but
excludes transmission lines owned by Special
Purpose Entities.
Note 1: To unify our reported figures, in 2020 we
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
TRANSMISSION LOSSES EU12
(%)
2020
2019
2018
1.16
1.52
1.62
Planned capacity GRI 103-2, 103-3
Eletrobras will add approximately 1,979 MW in in-
stalled capacity from 2020 to 2030 through projects
already under contract. These include Angra III, Santa
Cruz, the remainder of the Casa Nova IA wind farm,
and the expansion of the Curuá-Una thermal power
plant, the Cachoeira Branca small hydropower plant,
and natural gas-fueled independent power projects
(IPPs) in Manaus.
Note: The reported figures are for corporate transmission lines eligible
to RAP and that were in operation at the end of the reporting period.
The figures reported in the Annual Report 2019 were on the same
basis and not limited to corporate backbone assets as indicated in the
relevant footnote.
81
In 2030, if our concessions are not renewed for the
Tucuruí hydropower plant (in 2024), the Samuel hydro-
power plant (2029) and Campos thermal power plant
(in 2027), the installed capacity of Eletrobras Group
companies will be reduced by a total of 8,777 MW*.
Our only nuclear project is the Angra III plant, which will
add 1,405 MW in installed capacity in 2026.
*Not including approximately 1,979 MW in added capacity from
projects already under contract.
Ultra-high voltage Lab. Cepel Archives.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
82
Changes in installed capacity within the National Grid
Eletrobras System Capacity vs Total Planned Capacity (Ten-Year Expansion Plan (PDE) 2030)
Source
Coal
Oil
Nuclear
Natural gas
Hydro
Wind
Biomass
Solar
Total
Brazil - Na-
tional Grid
Eletrobras
System
Equity Inter-
ests
Brazil - Na-
tional Grid
Eletrobras
System
Equity Inter-
ests
Brazil - Na-
tional Grid
Eletrobras
System
Equity Inter-
ests
2020
2025
2030
(MW)
3,017
4,429
1,990
14,326
108,508
15,870
13,939
3,110
(MW)
350
199
1,990
1,146
46,258
704
-
1
(%)
12
4
100
8
43
4
-
0
(MW)
3,017
1,417
1,990
12,686
109,450
20,356
14,606
4,779
(MW)
350
199
1,990
1,704
37,737
707
-
1
(%)
12
14
100
13
34
3
-
0
(MW)
695
288
3,395
22,005
115,282
32,230
15,066
8,436
(MW)
350
199
3,395
1,679
37,520
707
-
1
165,189
50,648
31
168,301
42,688
25
197,397
43,851
(%)
50
69
100
8
33
2
-
0
22
Notes:
The installed capacity of the National Grid as reported in our Annual Report in 2019 was based on the Ministry of Mining and Energy’s National Grid Monitoring Bulletin in December 2019 and the figures for 2020 in this
year’s Annual Report were based on the PDE 2020-2030.
Eletrobras’s percent share of total National Grid capacity considered the baseline in PDE 2030.
The hydropower figures include Brazil’s half of Itaipu Binacional (7,000 MW).
For joint ventures, the reported installed capacity is proportional to Eletrobras’s stake in the joint venture.
We assume the concessions for some thermal power plants will be extended as anticipated by our subsidiaries. For the Natural Gas figures, the Campos thermal power plant concession is not assumed to be renewed in 2027.
For the Hydro source figures, we assume the concessions will be renewed for hydropower assets (Balbina, Itumbiara and Mascarenhas de Moraes) and nuclear assets (extension of the useful life of Angra I) expiring up to
2030. Includes the commissioning of the Cachoeira Branca small hydropower plant in 2021 and the expansion of the Curuá-Una hydro power plant in 2022.
The concessions for the Tucuruí and Samuel hydro power plants are assumed not to be renewed in respectively 2024 and 2029.
The Wind source figures include wind farms owned by Special-Purpose Entities that have been included in Competitive Disposal Procedures. The entry of the remaining 3 MW of the Casa Nova IA plant in 2021 was con-
sidered for wind power.
Biomass assets in the National Grid from 2020 to 2030 include both biogas and biomass assets in the Ten-Year Expansion Plan 2030 (PDE 2030).
Oil includes fuel oil and diesel oil.
The Eletrobras Digitization Program
Achieving leadership in innovation and advancing the digital transformation of
our business and management processes is among the strategic levers under
our Business and Management Master Plan (PDNG). To this end, the Eletrobras
Group has recently launched the Eletrobras Digitization Program. More than just
investing in technology, digital transformation is about shaping new ways of doing
business. Learn more about our digital transformation on the following pages.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
DIGITAL
TRANSFORMATION
AT
Developing solutions
Business Transformation
Accelerating digital initiatives for new
businesses and revenue streams.
83
Intra-entrepreneurship
ELETROBRAS
GROUP
Soma
Asset management
Automation
Improving
productivity,
transparency,
traceability and
quality of life.
Research
Innovation
Inclusive
development
I N F ORMATION
G O V ERNANCE
Monitoring
Digital Presence
Completing
corporate tasks
from anywhere
and on any device.
PROJECTS
Legal solution
Eletrobots
Strategy monitoring
Integrated
supplier selection
CYBERSECU R I T Y
Training
Mobility
Corporate
university
Data Intelligence
Enhancing our data culture by integrating
technology and building analytical capabilities.
Digital
signatures
Analytics
Automation/Robotization
Blockchain
PROJECTS
Electricity trading
Digital presence
Tax solution
Business intelligence
dashboards
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 84
Cybersecurity GRI 103-2, 103-3
In 2020, one of the risks that was top of mind at
Eletrobras was Information Security. Our goal in
these efforts was to mitigate and preventive events
which could compromise the availability, integrity,
confidentiality and authenticity of our corporate data
and information, or which could cause damages,
information and financial losses, disruption of
services, unlawful disclosure, reputational damage, or
other harm.
As part of these efforts, we implemented the
Eletrobras Group Information Security Policy and
related policies. Alongside the above policies,
the Eletrobras Group plans and prioritizes its
efforts using the NIST Cybersecurity Framework,
developed by the National Institute of Standards and
Technology in partnership with the private sector.
This framework focuses on using business drivers
to guide cybersecurity activities and considering
cybersecurity risks as part of an organization’s risk
management processes.
Training on the subject is provided by the Eletro-
bras Group Corporate University (UNISE) within the
“Business Support—Corporate Risk Governance
(GRC) and Compliance” pillar of our Corporate Edu-
cation Plan.
Cyber incident at Eletrobras
Eletronuclear
In February 2021, as reported to the market,
certain administrative systems at Eletrobras
Eletronuclear were targeted by a ransomware
attack. The incident had no impact on the security
or operation of our Angra I or Angra II plants, which
have operating systems that are isolated from
the administrative network for security reasons.
Eletronuclear contained and eliminated the effects
from the attack, and restored all systems to normal
operation under its contingency plan. It is important
to note that no ransom was paid and, in addition
to reporting the incident to the market, we also
notified the appropriate government authorities,
including the Government Cyber Incident Response
Center (CTIR.Gov) and the Brazilian Nuclear Program
Protection System (SIPRON).
LabSol. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE R&D AND INNOVATION
GRI 103-2, 103-3, EU8
Eletrobras Group companies have departments devoted
to managing Research, Development & Innovation
(R&D+I) and related activities. These departments
engage in research, development and innovation
activities and develop new projects/products or major
changes to existing ones in order to enhance our
economic, social and environmental performance
and value creation for stakeholders. Investments can
be made either as part of a project pipeline or as a
regulatory requirement to promote technological
development for the benefit of society, including the
following:
85
• Eletrobras Group’s portfolio of R&D+I projects in
collaboration with external firms and universities.
• CEPEL’s portfolio of institutional projects for
Eletrobras Group companies.
• Contributions to the National Scientific and
Technological Development Fund (FNDCT), which
funds scientific development projects in Brazil.
• Contributions to the Ministry of Mining & Energy
to fund studies and research as part of the planning
of the National Grid and future hydroelectric
developments.
Our R&D+I projects aim to enhance the operational
efficiency of our assets or processes, or build
technological capabilities for new businesses.
The Eletrobras Group Technology Policy Committee
(CPT) plays an important role as an internal
innovation network, integrating and optimizing
resources, lines of research and the extent of
impact from solutions. In 2020 the Committee led
several significant initiatives.
In addition to structural R&D+I projects, Eletrobras
Group companies have carried out joint corporate
innovation initiatives, such as organizing the
Eletrobras Group Innovation Awards to recognize
internal employee initiatives, and the 1st Eletrobras
Innovation Olympics, which will accelerate a culture
of innovation within the Company to generate
value-creating ideas.
High-Voltage Laboratory. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 1st Eletrobras Innovation
Olympics
Our 1st Eletrobras Innovation
Olympics, held under the theme
“Sustainability—2030 Agenda”, brought
together around 160 employees directly
and more than 2,000 employees indirectly.
The goal of the Olympics is to set up
teams and train employees to identify
innovation opportunities through intra-
entrepreneurship and open innovation.
During the competition, ideas were
accelerated into project proposals which
were then evaluated by a technical panel
and an employee panel in an open event.
The winning team, Green Hydrogen, built
a 3D prototype of a hydrogen processing
plant to unravel the complexity and
demonstrate the minimum footprint
and equipment needed to build a facility
of this scale. The hydrogen produced at
Eletronuclear’s plants, which is currently
discarded, will now be processed using a
palladium membrane.
The winning projects are then developed
by the winning teams using Lean
methodology and in collaboration with
startups. The Olympics are an offshoot of
the Furnas Innovation Program, which to date
is estimated to have generated more than R$
5 million in benefits for the Company.
In 2020 Eletrobras became a founding
member of the Center for the Fourth
Industrial Revolution (C4IR) Brazil, an Industry
4.0 initiative launched on the campus of the
Technological Research Institute (IPT). The
center is a public-private partnership among
the World Economic Forum, the Brazilian
Federal Government, the São Paulo State
Government, and industry. C4IR is the first
center of its kind in Brazil and will be focused
on artificial intelligence, machine learning,
the Internet of Things, urban transformation
and data policy. The goal of the Center
is to promote the adoption of innovative
technologies through scalable public policies
that can help to make Brazil’s companies
and the broader economy more competitive,
productive and sustainable
86
Eletrobras Group companies invested R$ 472.5 million
in Research, Technology & Innovation in 2020, a 48%
increase on 2019.
R&D+I INVESTMENT (R$ MILLION)
2020
2019
2018
R$ 472.50
R$319.40
R$337.00
Eletrobras Group’s R&D+I investments create benefits
and support research and development across a variety
of areas. The graph below shows the ratio of funding
allocated to the Ministry of Mining & Energy (MME),
the National Scientific and Technological Development
Fund (FNDCT), projects developed within the Brazilian
Electricity Regulatory Agency’s (ANEEL) R&D Program,
the Brazilian Power Sector Research Center (CEPEL),
and projects developed with Company funds, i.e. proj-
ects for which funding is not mandatory under Law no.
9991 (July 24, 2000).
FNDCT
22%
MME
11%
Company-funded
R&D 10%
ANEEL R&D proj-
ects 16%
CEPEL R&D
projects
41%
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE The graph on the right shows the
research subjects of R&D+I projects in
2020, using the same classification as in
our previous report.
INVESTMENT BY CATEGORY (R$ MILLION)
Distribution
Technologies
13.3
22.1
36.1
Generation & trans-
mission technologies
Energy efficiency
Innovation for
sustainability
Distributed energy
18.2
17.6
19.3
16.5
9.3
2.3
1.1
1.8
Renewable energy
33.5
50.6
56.8
59.3
Note: Not including Ministry of Mining and Energy (MME) and FNDCT investments.
87
210.0
194.6
233.9
2020
2019
2018
In 2020 we adopted the same classi-
fication for R&D+I projects as used by
ANEEL, which allows investments to be
better segmented.
INVESTMENTS BY ANEEL CATEGORY (2020)
(R$ MILLION)
62.0
45.7
41.0
38.3
49.3
Power system operation
Other
Power system supervision, control and protection
Alternative sources
Thermal power generation
Power system planning
Energy efficiency
Environment
Safety
Watershed and reservoir management
Power supply quality and reliability
24.7
21.9
10.8
9.0
7.3
4.5
Metering, billing and loss reduction
2.6
Note: Not including Ministry of Mining and Energy (MME) and FNDCT investments.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE eAmazonia
In 2020 we made further progress in setting
up our research center in the Amazon.
Originally called the Acre Power Sector
Center of Excellence (CEAC), the center has
now been renamed eAmazonia. Located
in the city of Rio Branco (AC), on the
campus of the Federal University of Acre
(UFAC), the center will provide a research
platform in the Amazon with global links to
develop sustainable solutions and innovative
technology for generating and using
electricity, supporting social, economic and
environmental development.
eAmazonia will build a network of research
collaborations with multiple institutions and
researchers around the world, with a focus
on sustainable development in the Amazon.
Construction of the facility is due to be
completed in 2021, including the structure
and laboratory equipment.
88
The center will initially be used for R&D
in energy efficiency, and has plans to
implement a Center of Excellence for
Public Lighting in the Amazon (NEIPA)
through a collaboration between PROCEL
and Eletrobras, as well as capturing other
opportunities for innovation.
Brazilian Power Sector Research
Center (CEPEL)
Founded 46 years ago, the Brazilian
Power Sector Research Center (CEPEL)
has advanced infrastructure for applied
research on power systems and equip-
ment. It designs and supplies techno-
logical solutions across generation,
transmission, distribution and trading in
Brazil. CEPEL contributes substantially
to Brazil’s technological self-sufficiency,
and has made a name in the local and
international market for power sector
innovation. Its product portfolio and
specialist teams make it the largest cen-
ter of its kind in South America.
CEPEL serves as a hub for the Eletrobras
Group’s research programs and projects,
and provides consulting and advice in
assessing research outcomes, knowledge
management and applications.
It also collaborates with Eletrobras Group
companies, industry, and local and global,
public and private education and research
institutes to develop R&D+I projects and
provide technological and specialized
laboratory services.
In addition, it provides technical sup-
port to important government initia-
tives, including programs for universal
access to electricity, energy efficiency
and sustainable development in Brazil,
as well as participating in international
forums such as the International Energy
Agency’s (IEA) International Low-Carbon
Energy Technology Platform and Tech-
nology Roadmap - Hydropower. It is also
a member of the Brazilian-led Initiative
on Sustainable Hydropower as part of
the Clean Energy Ministerial (CEM), and
the United Nations Sustainable Energy
for All initiative.
CEPEL has a highly qualified staff,
including a multidisciplinary team of
researchers and technicians. It has
34 laboratories equipped to perform
experimental research and standardized
and special tests, some of which are the
only laboratories of their kind in Latin
America.
CEPEL had 70 ongoing projects in 2020,
in an investment of R$ 192 million, 46%
of the Eletrobras Group’s total R&D in-
vestment. This closely approximates the
R$ 195 million we invested in 2019—
even in such a testing year, we sustained
our innovation efforts given CEPEL’s
importance in driving innovation across
Brazil’s power sector.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Energy transition GRI 103-2 , 103-3
With a primary goal of containing
global warming, the energy transition is
ushering in structural changes in global
energy mixes toward a low-carbon econ-
omy. This involves migrating from fossil
fuel-based models to alternatives with
a greater share of clean and renewable
energy.
Projects developed
via CEPEL
Unlike most countries in the world, Bra-
zil’s electricity and energy mix has histor-
ically been highly weighted in renewable
energy. According to the PDE 2030, 48%
of the country’s energy mix and 85% of
the electricity mix are renewable sourc-
es. With the electricity mix expected to
reach 88% renewables by the end of the
decade, Brazil’s will remain one of the
cleanest electricity mixes in the world
over the coming years.
But the country’s electric city mix has also
been diversifying, reducing the share of
hydropower and increasing the share of
wind, solar, natural gas and other sources
to a lesser percentage, according to data
in the PDE 2030. These sources are also
expanding in the energy mixes of other
countries around the world, as part of a
global energy transition.
Eletrobras’s Strategic Plan 2020-2035
calls for the expansion of clean gener-
ation, and the diversification of energy
sources. In considering potential gener-
ation projects at Group companies, we
take these considerations into account
in order to develop a diversified genera-
tion portfolio in the free and the regulat-
ed markets, and actively engage in and
support the modernization of the power
sector.
In assessing new generation business
opportunities, Eletrobras uses meth-
odologies that take technical, social,
environmental and economic criteria
into account.
For projects based on fossil fuels, we
work to optimize our existing projects
and implement newly developed and
improved emissions monitoring and
reduction technologies, helping to make
our facilities as energy-efficient and low
in emissions as possible.
Through CEPEL, we have also imple-
mented a wide range of initiatives and
projects to improve energy efficiency,
as the global energy transition is not
only about generating and consum-
ing low-carbon energy, but also about
optimizing consumption of goods and
services.
For more information about our genera-
tion expansion program, see the section
“Planned Capacity” (page 78). EU10
89
SDG
7
A structure at the Ultra–High Voltage Laboratory.
CEPEL Archives
Industry Programs
We support important Federal Govern-
ment initiatives to promote sustainable
development throughout society and in
our industry, by universalizing access to
electricity, improving energy efficiency,
and expanding science and technology
capabilities in Brazil.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE National Energy
Conservation
Program (PROCEL)
SDG
7
PROCEL is a Federal Government
program that aims to improve energy
efficiency, reduce waste and increase
cost efficiency in industry. The program
comprises a set of sectoral initiatives
throughout Brazil in the areas of educa-
tion, knowledge dissemination, buildings
and facilities, environmental sanitation,
municipal energy management, public
lighting, and industry.
is responsible for managing and using
Program funds. In 2020, approximately
R$ 42.3 million was invested within the
program.
The table below shows key program
indicators in 2020, including energy sav-
ings of approximately 22 million mega-
watt-hours (MWh) and 1.36 million tCO2
equivalent in avoided emissions.
PROCEL is funded by contributions of
0.1% of the net operating income of
Electric utility companies pursuant to
Law no. 13 280/2016, and Eletrobras
The benefits from the program include
both electricity savings as well as de-
ferred demand for capacity expansion,
creating benefits for society.
PROCEL Indicators
Indicator / Year
Energy savings
(million MWh/year)
GHG emissions avoided
(1,000 tCO2 equivalent)
2018
2019
2020
22,990
21,600
22,023
1,701
1,600
1,359
Peak shaving (MW)
7,257
8,129
7,262
90
PROCEL Education
On PROCEL’s education front, in 2020 we launched a 10-ep-
isode animated series, called “Collective Awareness”, about
energy efficiency in different areas and new technologies and
sustainable ways to generate electricity. The series was pro-
duced in partnership with Canal Futura.
PROCEL Mark
Created in 1993, and one of the Program’s most popular ini-
tiatives, the PROCEL Energy Savings Mark helps consumers to
identify energy-efficient and environmentally friendly products.
PROCEL Reluz
In 2020 we also carried out several public lighting projects as
part of the PROCEL Reluz program, which will install a total of
30,000 streetlights in around 77 municipalities.
PROCEL Edifica
One of the PROCEL Program’s highest-impact initiatives in
the buildings and facilities segment is its Operational Energy
Performance (DEO) and User Comfort program for facilities and
building management companies.
Learn more about PROCEL initiatives on our website.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
PROCEL Industry
Other initiatives
91
In 2020 we launched an Alliance Program website featuring databases
with key indicators and other information about the program meth-
odology and the process for onboarding new companies. Another
initiative completed in 2020 was the tropicalization of the US Depart-
ment of Energy’s (DoE) MEASUR software system. One of the most
widely used platforms in industrial energy efficiency projects globally,
MEASUR provides a suite of tools for analyzing energy consumption
across different systems and equipment. Learn more about this initia-
tive on our website.
Lighting Laboratory. CEPEL Archives
With support from the Brazilian Energy Research Cor-
poration (EPE) and the Ministry of Mining and Energy
(MME), since 2019 the PROCEL Program has been
working to develop a Ten-year Energy Efficiency Plan
(PDEf), a set of policies to reduce energy consumption
in key sectors in Brazil. The project addresses the need
for detailed options to meet electricity- and fuel-re-
lated targets for 2030, based on the macro-economic
and energy efficiency assumptions outlined in the most
recent Ten-Year Expansion Plan (PDE 2029). It also
addresses the need for a tool for managing and defining
the proportional contribution to be made by each en-
ergy efficiency program to Brazil’s commitments to the
Sustainable Development Goals (SDGs) and Nationally
Determined Contributions (NDCs).
In 2020, the PROCEL Program launched an energy
efficiency innovation contest called “PROCEL Lab”. The
goal of the contest is to support and catalyze opportu-
nities for innovation projects at startups and micro and
small businesses—selected through calls for propos-
als—that can then lead to new businesses and inno-
vative products and solutions for the benefit of society,
with an emphasis on energy efficiency.
9
SDG
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Light for All Program EU23
The National Program for Universalization of Access
and Use of Electricity, or “Light for All Program” (Pro-
grama Luz para Todos—LPT), created in 2003, aims to
provide electricity supply to all unserved rural commu-
nities by 2022.
The LPT Program is supervised by the Ministry of Mining
& Energy (MME) and executed by Eletrobras, which
manages execution contracts and monitors rural elec-
trification works within the Program.
SDG
7
More than bringing
electrical power to
rural and remote
areas, the Light for
All Program acts
as a driver of social
development
In addition to bringing electrical power to rural and
remote areas, the Program provides solutions for using
electricity as a driver of social and economic develop-
ment in low-income communities, supporting poverty
reduction and better living standards. Access to electric-
ity also supports access to healthcare, education, water
supply and sanitation, and other federal government
programs and services. These initiatives improve quality
of life for smallholders and help to avoid rural flight.
Program funding is provided by the Federal Government
through grants disbursed from the Energy Development
Account (CDE) and by Execution Agents (electric utilities
and rural electrification cooperatives) out of their own
or borrowed funds.
HOMES SERVED (TOTAL TO DATE) BY THE
LIGHT FOR ALL PROGRAM
2020
2019
2018
3,561,849
3,517,617
3,438,661
Source: Ministry of Mining and Energy (January 2021).
92
More Light for the Amazon
EU23
SDG
7
In 2020, Eletrobras was tasked with executing the
National Program for Universalization of Access and
Use of Electricity in the Brazilian Amazon, or More Light
for the Amazon (Mais Luz para a Amazônia, MLA). The
MLA program was created for people residing in remote
areas who, for economic and environmental reasons,
cannot be served by extending conventional power
lines. Program beneficiaries include families in areas
without access to electricity or who generate electricity
using nonrenewable sources.
The program’s services will be carried out through
electricity generation from clean and renewable sourc-
es and aim to develop communities, mostly riverside,
indigenous, and quilombolas. Access to electricity can
reduce social and economic vulnerabilities and en-
hance civic engagement, well-being and dignified liv-
ing for these communities. Like the LPT Program, MLA
will provide solutions for using electricity as a driver of
social and economic development in low-income com-
munities, contributing to poverty reduction and higher
household incomes. MLA will benefit approximately
82,000 families in remote areas of Brazil’s portion of
the Amazon.
Program funding is sourced from electric power sector
players, the Energy Development Account (CDE), an
industry fund managed by the Electric Power Trading
Chamber (CCEE), and other sources managed by the
MME jointly with other government agencies.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Alternative Source
Incentive Program
(PROINFA)
The Alternative Source Incentive Program (PROINFA)
was created in 2002 to expand the share of renewable
sources in Brazil’s energy mix by incorporating new
wind, small hydro and biomass projects into the
National Grid.
Eletrobras has played a central role within the pro-
gram by concluding 20-year offtake agreements with
projects developed within PROINFA. The Program has
fulfilled its goal of diversifying Brazil’s energy mix by
increasing the share of wind, small hydro and biomass
projects.
In 2020, the Program generated 9.1 million MWh at a
cost of R$ 3.32 billion, for a total of approximately 106.8
million MWh generated from February 2006 to year-
end 2020. The total number of projects added to the
National Grid was unchanged compared to 2019.
SDG
7
93
The Casa Nova Wind Farm Cluster. Chesf Archives.
Government Assets
under Management (BUSA)
Under article 2 of Decree-Law no. 1383/74 (Decem-
ber 26, 1974), assets expropriated and taken over with
funds from the Global Reversion Reserve (RGR) Account
have been integrated together and placed under the
management of Eletrobras. These assets are referred
to as Government Assets under Management (BUSA in
the Portuguese acronym).
We manage 1,994 Federal Government assets linked
to electric utility concessions that are registered in the
Management Information System for Government
Assets under Management.
On May 1, 2017, sectoral funds previously managed by
Eletrobras, including the RGR Account, were placed under
the management of the Electric Power Trading Chamber
(CCEE) under Law no. 13 360/2016, without any legal
provisions establishing a requirement to compensate
Eletrobras for the continued management of those assets.
From May 2017 to June 2020, the holding company
spent R$ 9.69 million on the management of BUSA
assets, as shown in the table below.
Executive Order no. 998/2020, which was later con-
verted into Law no. 14 120 (March 1, 2021), established
that administrative, financial and tax expenses incurred
by Eletrobras on the registration, maintenance and
management of BUSA assets and facilities as from May
1, 2017 are to be compensated for with funds from the
RGR Account, as shall be regulated by ANEEL.
It also expanded the possibility of disposing of assets
no longer fit for utility service without this depending
on Eletrobras exercising its powers to sell those assets.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE SUPPLIER
MANAGEMENT GRI
102-9
Eletrobras Group companies work to
build a relationship of partnership with
their suppliers, from onboarding and
on throughout the contract. We val-
ue ethics, integrity, transparency and
sustainability, and select suppliers who
demonstrate these attributes.
Our main suppliers are in areas such
as technology, information systems,
telecommunications, engineering,
manufacturing, transportation, reselling,
power system equipment, consulting,
and janitorial and security services. In our
procurement and supply–chain process-
es, we implement initiatives to support
the Sustainable Development Goals
(SDGs) within the United Nations’ (UN)
2030 Agenda, and ensure adherence to
the guidelines in our Sustainability Policy.
To this end, it is essential that our suppli-
ers understand and are engaged around
our corporate guidelines supporting
the SDGs, and understand the commit-
ments we have voluntarily undertaken
to initiatives aligned with sustainable
development, human rights and social
and environmental responsibility.
Our suppliers vary in scale—from micro
businesses to large multinationals in
Brazil and around the world—but all are
subject to the same Procurement Logis-
tics Policy, which contains requirements
on the procurement of goods, materials
and services in a way that ensures busi-
ness sustainability, corporate integrity
and efficiency in the procurement, man-
agement and logistics of goods, services
and materials.
SDG
7
8
94
Critical suppliers are identified in an
assessment against the criteria de-
scribed above. All onboarded suppliers
are input into a materiality matrix that
automatically generates a risk rating
(high, medium and low criticality) based
on their aggregate score on the assess-
ment criteria.
Amid the global pandemic, the Eletro-
bras Group National Supplier Meeting,
an event traditionally held in person,
had to be re-planned as a remote event
in 2020. Turning adversity into oppor-
tunity, we held a series of four webinars
with more than 1,200 attendees, ad-
dressing topics such as: sustainability,
human rights, environment, corporate
integrity, occupational safety, quality
audits, laws and regulations, and busi-
ness opportunities. Click here for full
coverage of the event
SDG
7
Monitoring
Suppliers are monitored throughout their
business relationship with Eletrobras on
different aspects, including: compliance,
economic/financial assessment; techni-
cal capabilities; compliance with speci-
fications; internal monitoring (contract
management and oversight); and due
diligence on critical suppliers (Environ-
ment, Human Rights and Integrity).
Critical suppliers are defined as suppliers
of materials or services that are essential
for Eletrobras’s core activities and direct-
ly impact the final quality of our services,
the environment, the health and safety
of our employees, and human rights;
suppliers that have access to confiden-
tial information; exclusive suppliers or
suppliers with large transaction volumes;
and suppliers identified as posing a sig-
nificant risk to the Company’s integrity.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Procurement practices GRI 103-2, 103-3
Eletrobras Group companies use an Annual Procurement Planning (PAA) tool to
formalize and integrate demand forecasting for the following fiscal year, providing
a detailed and consolidated view of aspects such as quantities, prices, requesting
departments, expensing periods and when the item will be needed, among other
information needed for procurement planning. Forecasts are prepared annually of
procurement demand in the following fiscal year.
2,086
Number of suppliers engaged via competitive
procedures, under exemption (above R$
50,000.00) and via direct contracting in 2020
GRI 102-9
8,626
Estimated number of suppliers
In 2020 there were no significant changes to the
structure of our supply chain GRI 102-10
Local sourcing and micro and small
businesses
We recognize the importance of stimu-
lating local economies and sustainable
regional development in the geogra-
phies where the Eletrobras Group oper-
ates. Accordingly, nearly half of Eletro-
bras Group purchases are made from
local suppliers. All suppliers are required
to follow the unified guidelines in our
Procurement Logistics Policy.
To further increase local sourcing, we
observe legal requirements on engag-
ing micro and small businesses in our
procurement processes (Complementary
Law no. 123/2006). In 2020 the holding
company launched a pilot project in
partnership with the Brazilian Micro and
Small Business Support Service (SEBRAE)
that identified and provided capacity
building to local suppliers. We plan to roll
out the project at other Group compa-
nies in 2021. Learn more
95
R$ 5,587,120,953.37
Total purchases (including
all types of purchases and
contracts signed) in 2020
R$2,519,380,324.40
Total purchases (all types) from
local suppliers in 2020
45.09%
Percentage of purchases from
local suppliers GRI 204-1
SDG
8
Visit our Suppliers page to learn more
about our procurement practices.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 96
CREATING SOCIAL
VALUE
At the Eletrobras Group we recognize
that our business generates impacts on
society, and work to ensure that positive
effects outweigh or help to mitigate
negative ones. We invest in a range of
initiatives in surrounding communities
and encourage and support volunteering
among our employees.
The Eletrobras Group Volunteering
Program GRI 413-1
In 2020, our Corporate University’s
(UNISE) Corporate Social Responsibility
School administered an online course to
train volunteering managers on program
management, present new approaches
to volunteering during and after the
pandemic, and align on planning for
programs and initiatives conducted
jointly by Group companies.
When the pandemic broke out, our
volunteers were concerned about the
welfare of communities supported by
partner organizations, especially in com-
munities surrounding Group companies’
headquarters. Our volunteering pro-
grams helped to mediate between these
social needs and employees’ eagerness
to help even while sheltering in place.
Key indicators for Eletrobras Group’s
volunteering programs
R$100,966.50
in mobilization
R$27,623.25
in volunteering support
R$51,651.42
in paid volunteering hours during
employees’ working hours
187 hours
dedicated to after-hours
volunteering
2527 people benefited by
volunteering initiatives
Learn more about
Eletrobras Group
companies’ volunteering
programs on the following
websites:
Eletrobras
Chesf
Eletronorte
Furnas
Itaipu
In March, we organized initiatives to
collect a variety of personal care and
cleaning materials, groceries, cloth-
ing, footwear and school materials for
donation to children served by partner
organizations, as well as cash donations
to purchase grocery kits.
On December 5, Eletrobras Group com-
panies marked International Volunteer-
ing Day by reviving an old tradition that
has brought people together over the
centuries: storytelling. To work around
the pandemic restrictions, our volunteers
recorded their stories on video. The tales
were intended for a child audience and
were shared with the Programs’ partner
charities. Learn more here.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
97
SDG
8
Before the new policy was announced,
four directly selected sponsorships
had already been approved by the
holding company.
Support for projects selected
within the 2019 Call
for Social Project Proposals
In 2020, the Eletrobras Group continued
to execute the projects selected with-
in the 2019 Call for Project Proposals,
which was organized around the United
Nations 2030 Agenda and specifically
SDG 8 – Decent Work and Economic
Growth, and SDG 4 – Quality education.
Sponsorship
In 2020, due to the COVID-19 pan-
demic, the Eletrobras Group estab-
lished a policy under which all budget
funding earmarked for donations,
sponsorship and social programs was
allocated to the pandemic response.
During the sheltering in place period,
the Eletrobras Group Sponsorship
Subcommittee postponed to 2021 the
sponsorships awarded as part of the
2019 Calls for Cultural Project Pro-
posals, while maintaining any online
sponsorship offsets, such as project
preview podcasts with sponsor ac-
knowledgments.
Project
Sponsoree
Sponsorship amount (R$)
Contract
001/2020
Álvaro Alberto—A Man
Ahead of His Times
Madai Produçoes Eire-
li—EPP
002/2020
Harp Festival 2020
Carpex Empreendimentos
e Promoções Ltda
300,000.00
200,000.00
003/2020
004/2020
The Grota Culture
Space—25 years develop-
ing talents,
Annual Program of Activ-
ities and Season 2020—
Brazilian Symphonic
Orchestra
Reciclarte
200,000.00
Fundação Orquestra Sin-
fônica Brasileira—FOSB.
300,000.00
Our donations in 2020
were directed to the
pandemic response
Two projects supported by the holding
company that equip youth for the job
market—Nutrindo o Saber, in Natal, Rio
Grande do Norte, which supports the
social and professional development
of youth and adults, and the Teixei-
ra de Freitas Luthier School (Neojiba
Program), in Bahia—received funding
of respectively R$ 124,511.88 and R$
105,598.20.
CGT Eletrosul supported 3 projects: an
APAE project to purchase rehabilitation
equipment for people with cerebral
palsy, autism, Down syndrome, at-
tention-deficit/hyperactivity disorder
(ADHD) and motor impairment, in
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE These projects equip youth with the
skills needed in the job market, help-
ing to reduce inequalities and improve
quality of life for socially vulnerable
communities.
Due to the pandemic, some of these
projects will only be completed in 2021.
In an initiative outside the scope of
the Call for Proposals, Eletronuclear
identified an opportunity to support
the local economy by ordering more
than 10,000 face masks from a coop-
erative and three clothing makers in
districts near its nuclear plants. These
were then distributed to employees
working on-site.
Also in 2020, the Eletrobras Group’s
Sponsorship and Call for Proposals
subcommittees prepared calls for
projects in four areas—Culture, Power
Curiúva, Paraná, which received R$
15,310.00 in funding; an interac-
tive intervention room at APAE as an
option for cognitive and psychomotor
development, in Palma Sola, Santa
Catarina, which received funding of
R$ 40,090.00; and a project for diver-
sified stimulation of cognitive, social,
affective, emotional and psychomotor
development for children with disabil-
ities at APAE, in the city of Mangue-
irinha, which received funding of R$
21,206.50 to purchase equipment to
enhance activities at the organization.
Also as part of the projects selected in
the Call for Proposals, Furnas support-
ed a project to teach the Internet of
Things to secondary education stu-
dents in São Paulo, in a collaboration
with the University of São Paulo’s (USP)
Laboratory of Integrated Technolo-
gy Systems (LSI-TEC), which received
funding of R$ 69,710.00 in 2020. In
addition, Furnas continued its “Sewing
Hope” project in partnership with the
Passos Youth Training Center (CAPP) in
Passos, Minas Gerais, with funding of
R$ 4,844.10.
Sector, Sponsorship and Social—that
will be published in 2021. This year’s
edition of the Call for Social Project
Proposals has incorporated environ-
mental topics in its scope and has
been renamed the Call for Social and
Environmental Project Proposals. SDGs
10, 13 and 15 have been prioritized
and criteria have been developed that
align with reducing social inequalities
and preserving biodiversity.
Eletrobras Group companies under-
took a wide range of initiatives in 2020
to help tackle the coronavirus pan-
demic. For more about these initia-
tives, see page 10..
Also in the year, the Eletrobras Group
donated R$ 886.1 million to volunteer-
ing initiatives in support of surround-
ing communities, including dona-
tions for the pandemic response and
projects in the areas of social welfare,
culture, sports, local development, civ-
ic engagement, education, children’s
rights, elderly rights, employment and
livelihoods, health and food security,
donations and volunteering.
98
In 2020 the
Eletrobras Group
developed four calls
for proposals that
will be published in
2021
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 99
MATERIAL TOPICS
EMBEDDING SOCIAL AND ENVIRONMENTAL
ISSUES IN DECISION-MAKING
HUMAN RIGHTS
PEOPLE MANAGEMENT AND DEVELOPMENT
COMMUNITY RELATIONS
HEALTH, SAFETY AND WELL-BEING
IR CAPITALS
People
CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE OUR EMPLOYEES
In 2020, employee collaboration across
the Eletrobras Group became especially
crucial in keeping our operations run-
ning amid the COVID-19 pandemic. At
peak, around 75% of our employees were
assigned to work from home throughout
the country. Online team collaboration,
without the need for commuting or travel
for meetings, incidentally helped to ac-
celerate a transformation that had been
ongoing in recent years to establish a
unified culture across Group companies.
Even with employees working remotely,
we continued our training program, our
Voluntary Severance and Workforce
Reorganization Program, the develop-
ment of our Succession Policy, and the
reformulation of our Career & Remuner-
ation Plan (PCR).
Eletrobras engaged consultants to
help perfect the PCR and refine our Job
Hierarchy. In December 2020 a newly
proposed methodology was submitted
to the Office for Management and Gov-
ernance of Government-Owned Com-
PEOPLE
People are crucial for
every organization:
they represent
employees,
customers, suppliers,
distributors, retailers
and neighbors.
Organizations
are expected to
be committed to
respecting health
and safety, human
rights, and promoting
equality and diversity.
A wind farm in Ceará. Photo: Jorge Coelho
100
panies (SEST) and we plan to implement
the final version throughout 2021. Ad-
justments have been made for increased
alignment with our Strategic Plan 20-35
and to reformulate skills and compe-
tencies requirements, corporate areas
of activity, access permissions, and job
titles. The new format is consistent with
industry best practices, and expands
opportunities for careers and employee
engagement.
New employees are hired through
competitive procedures, as required by
Brazil’s Constitution, to meet new staff-
ing needs. The most recent competitive
procedure was organized in 2010, and
the most recent new hires were in 2011.
GRI 103-2, 401-1, EU14
Employee turnover has remained at low
levels. In 2020, our turnover rate was
4.32% and our hiring rate was 0.5%.
GRI 401-1
In 2020, work began on the development
of a Succession Plan to select candidates
for management positions out of our
internal pool of talents. Under the plan,
potential candidates will be identified
and interviewed by a specially designated
committee. This is a new approach that
has been implemented as part of gov-
ernance enhancements introduced at
Eletrobras under Law no. 13 303/2016.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Workforce profile GRI 102-7, 102-8
BY REGION
1,399
NORTH
1,234 (MEN)
165 (WOMEN)
3,416
NORTHEAST
2,813 (MEN)
603 (WOMEN)
101
SDG
7
8
9
BY GENDER AND
CONTRACT TYPE
BY EMPLOYMENT TYPE
1,289
MIDWEST
987 (MEN)
302 (WOMEN)
2,673
SOUTH
2,220 (MEN)
453 (WOMEN)
MEN
11,184
INDEFINITE TERM
6
DEFINITE TERM
WOMEN
2,610
INDEFINITE TERM
3
DEFINITE TERM
FULL TIME
PART TIME
9,723
1,467
MEN
MEN
2,472
WOMEN
141
WOMEN
5,025
SOUTHEAST
3,935 (MEN)
1,090 (WOMEN)
1
OUTSIDE BRAZIL
1 MALE EMPLOYEE
13,803
TOTAL
12,195
TOTAL
1,608
TOTAL
These are consolidated indicators for all Eletrobras Group companies. For Itaipu, only direct
employees working in Brazil are included. This applies to all workforce-related disclosures in this
Annual Report.
* The figures include all active employees in the following categories: direct employees, requi-
sitioned employees, rehired employees and political appointees. The figures exclude seconded
employees, employees on unpaid leave, rehired employees seconded to other agencies, interns
and young apprentices.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 102
TURNOVER GRI 401-1
SDG
8
Gender
Men
Women
Men
Women
2019
2020
Turnover rate
Total terminations
Turnover rate
Total terminations
9.44%
11.39%
1,120
323
3.97%
5.65%
449
168
New hire rate
Total new hires
New hire rate
Total new hires
0.93%
1.23%
110
35
0.46%
0.67%
52
20
Note: The turnover rate was calculated using the following standard Group-wide formula: (employees terminated [by gender or region or age group] / number of employees [by gender or region or age group]) x 100.
TURNOVER BY REGION GRI 401-1
2020
Total new hires
New hire rate
Total terminations
Turnover rate
2019
Total new hires
New hire rate
Total terminations
Turnover rate
North
Northeast
Midwest
Southeast
0
0
155
10.68%
North
1
0.06%
91
5.62%
8
0.23%
67
1.93%
2
0.14%
186
13.15%
27
0.53%
115
2.25%
Northeast
Midwest
Southeast
1
0.03%
668
18.93%
25
0.156%
124
7.75%
84
1.62%
399
7.69%
South
35
1.23%
94
3.31%
South
34
1.23%
161
5.82%
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 103
TURNOVER BY AGE GROUP GRI 401-1
2020
Total new hires
New hire rate
Total terminations
Turnover rate
2019
Total new hires
New hire rate
Total terminations
Turnover rate
Under 30
31 - 50
Over 50
18
7.93%
4
1.76%
45
0.53%
50
0.59%
Under 30
31 - 50
10
3.61%
8
2.89%
82
0.94%
131
1.51%
9
0.16%
563
10.04%
Over 50
53
0.93%
1304
22.80%
RETURN TO WORK AND RETENTION RATES AFTER PARENTAL LEAVE GRI 401-3
SDG
8
16
Return to work rate1 - women
Return to work rate1 - men
Retention rate2 - women
Retention rate2 - men
100%
100%
94%
92%
Note 1: Calculated using the following formula: (total employees who returned to work after parental leave ended / total
employees who should have returned to work after parental leave ended) x 100.
Note 2: Calculated using the following formula: (total employees retained 12 months after returning to work from parental
leave / total employees who returned to work from parental leave in years prior to the reporting period) x 100.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 104
SDG
8
16
GRI 405-1
The goal under our PDNG of reaching
more than 21% women in management
positions was already met in 2020. In
2020, 36% of management positions
were held by women, exceeding the
overall percentage of women employees
at Eletrobras Group companies (19,01%).
The PDNG also addresses the ratio of ba-
sic salary and remuneration of women to
men for each employee category (Oper-
ational Unit), setting a target of reaching
salary equity by 2025.
DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES
By age group %
By minority group %
Under 30
31 - 50
Over 50
Black, brown, yellow and
indigenous
People with disabilities
Members of governance bodies
Management
Employees
0%
0%
2%
36%
74%
60%
64%
26%
38%
0%
22%
36%
0%
1%
2%
MEMBERS OF GOVERNANCE BODIES, BY
GENDER (%)
EMPLOYEES, BY GENDER (%)
MANAGEMENT (LEADERSHIP)
TOTAL WORKFORCE
15%
22%
19%
85%
78%
81%
MEN
WOMEN
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE WORKFORCE GRI 103-2, 103-3, 401-1
At Eletrobras, workforce aspects such
as new hires, turnover and terminations
are periodically reported to and moni-
tored by executive directors.
Our workforce management practices
are guided by our strategic plan, our
goal to achieve excellence in people
management and build a culture of
excellence, and the following strategic
guidelines:
• Drive and continually assess perfor-
mance, and use performance assess-
ments to steer career development to
achieve results and needed skills and
competencies
• Develop and implement employee
development and knowledge manage-
ment models, networks and programs
• Develop management methods that
can enhance employee engagement,
motivation and commitment
The Eletrobras Group People Man-
agement Policy, which was revised in
2018, is intended to “guide and stan-
dardize people management practices
at Eletrobras Group companies with
the goal of building a culture that pro-
vides safe and adequate conditions for
employee development, productivity,
recognition and retention, contribut-
ing to achieve business results.” For
further information, visit the Eletro-
bras website.
In 2020 Eletrobras developed a High
Performance Work System and Employ-
ee Lifecycle as part of our Human Cap-
ital Enhancement Project, within the
Sustainability Program 4.0. The proj-
ect aims to develop a human capital
strategy focused on high performance,
careers, employee engagement and
quality of life, and that leverages our
workforce as a driver of value creation
for the organization.
105
Cultural Transformation
In a fast-changing business environment, Eletrobras
has long recognized the need to constantly adapt
and implement more integrated processes to achieve
business excellence, even before the coronavirus
pandemic caused such dramatic changes to com-
panies’ business routines. A Cultural Transformation
program has been ongoing for several years to build
a high-performance, meritocratic corporate environ-
ment across Eletrobras Group companies. A con-
sulting firm was engaged to provide its expertise and
assist Eletrobras in program delivery, which comprises
three major stages, in each of which the involvement
of each employee has been crucial:
1. Methodological framework and baseline
assessment of the organizational culture
2. Cultural Transformation modeling
3. Awareness raising and implementation of the
Cultural Transformation plan
The two first phases were completed by December
2020, and the third and last phase was initiated with
a kickoff event in January 2021, attended by execu-
tives from all Eletrobras Group companies.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE TRAINING AND
DEVELOPMENT
GRI 103-2, 103-3
SDG
8
Our training activities aim to provide
employees with a comprehensive under-
standing of their roles and how they
support the Group’s objectives and busi-
ness sustainability. The Eletrobras Group
Corporate University’s (UNISE) Corporate
Education Program (PEC) serves as a ba-
sis in managing employee training activ-
ities. Each Group company is designated
as a Corporate Education Unit, and is
responsible for developing the specific
skills and competencies needed for its
business based on guidance provided
by UNISE. UNISE and Group companies
work together to provide adequate
and effective educational activities to
employees that are consistent with the
company’s needs. These activities can
either be outsourced to external suppli-
ers or administered by employees as part
of the Employee Educator Program.
DIALOG AND ENGAGEMENT GRI 102-43, 102-44
SDG
16
In 2020, our employee communications
focused on a number of strategic topics
in several wide-reaching initiatives and
campaigns. A total of 39 major cam-
paigns were organized, including 22
extending to all Eletrobras Group com-
panies and 17 directed to holding-com-
pany employees.
We extensively used our corporate TV
and intranet site for employee commu-
nications activities. Also in the year, we
launched an internal channel and two
communications products for employ-
ees, both in a digital format: a corporate
WhatsApp group for managers; “Se Liga”,
an audio message service for employ-
ees; and Executive Communicationss
Reporting, for the Board of Directors.
In 2020 we launched a new
communications channel for
employees
Organizational Climate Survey
The 6th edition of the Eletrobras Group
Organizational Climate Survey, which
we have organized every two years since
2009, was conducted in December 2020.
The survey had a 42.18% response rate
and gave employees the opportunity to
express their views anonymously about
topics such as benefits, careers and
remuneration, recognition, corporate
education, interpersonal relationships,
leadership, ethics and integrity, sus-
tainability and human rights, working
conditions, and occupational health and
safety.
The consolidated Favorability Rating
(IF) across Eletrobras Group companies
was 77.96%, compared to 74.18% in
the previous survey, in 2018. The 2020
IF exceeded the target in our Business
Performance Goals Contract (CMDE).
With the inputs from the survey, pro-
posed improvements will be recom-
mended for implementation at all
Group companies. Beginning in 2022,
the Organizational Climate Survey will
be conducted by a third-party firm, as
established in our strategic plan.
106
Each Group
company is
designated as
a Corporate
Education Unit,
and is responsible
for developing
the specific skills
needed for its
business
The PEC was developed based on a
Group survey by our education teams
using a methodology involving in-
terviews with managers and internal
experts. The PEC covers training on core,
managerial and general skills needed for
the challenges outlined in the Eletrobras
Group Strategic Plan 2020-2035, the
current Business & Management Master
Plan (PDNG), and individual Group com-
panies’ business plans.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 107
UNISE offers training programs
that develop skills in a wide
range of areas, including: Market
Strategy, Operational Excellence,
Management, Leadership, and
Corporate Social Responsibility GRI 404-2
EMPLOYEES RECEIVING REGULAR PERFORMANCE REVIEWS,
BY EMPLOYEE CATEGORY (%) GRI 404-3
Management
University level
Non-university level
Total
Men
Women
79
76
72
74
80
75
72
74
2020
Total
80
76
72
74
SDG
16
In 2020 we implemented phase two of
the Eletrobras Group’s unified training
management system, including the
classroom-based and online compo-
nents. The system supports operation-
al process automation, online course
hosting, knowledge management
and reliable tracking of performance
indicators.
UNISE also uses an online platform
hosting short web series courses.
Real-world situations are addressed
using a Problem Based Learning (PBL)
approach that develops critical think-
ing, enhances problem-solving skills,
empowers employees, and helps them
to learn and apply their knowledge in
new situations.
In 2020 we also approved the Eletrobras
Group Corporate Education Policy and
Corporate Education Rules. The Rules
further detail the guidelines in the Pol-
icy, establishing unified requirements,
workflows and roles and responsibilities.
Visit the Eletrobras website to learn
more about our Policy.
During the pandemic, webinars and
leadership summits were organized
to discuss and share ideas on more
productive approaches to leadership,
including the following topics: Effective
Communications & Resilience, Leading
Remote Teams, Productivity, Emotional
Self-Control and Working from Home,
Leading for Sustainable Results, Wom-
en in Leadership, the Role of Leader-
ship in the New Normal, and Personal
Financial Planning.
We also organized group discussions for
managers and employees to promote
behavioral changes, encourage positive
mindsets, and integrate different areas
of knowledge, helping to build confi-
dence and balance. These discussions
covered topics such as emotions during
crises, healthy nutrition, and interper-
sonal relationships.
Internship and Young Apprentice
Programs
Interns at Eletrobras Group companies
are mentored by an experienced em-
ployee with the same educational back-
ground, who is responsible for coaching
and supervising them in their activities.
This illustrates the importance we attach
to the program. In addition to daily
supervised activities, interns participate
in educational activities that supplement
their training.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE SDG
8
Our Young Apprentice Program, a
partnership with the National Indus-
trial Training Service (SENAI), helps to
prepare youth to enter the job market
and improve their employability. The
program was launched in 2019 with
theoretical training provided by SEN-
AI. In 2020, students were allocated to
different departments at the company
according to their individual profiles and
interests. Eletrobras Group companies
hosted approximately 950 interns and
young apprentices in 2020.
108
AVERAGE HOURS OF TRAINING PER
EMPLOYEE BY GENDER GRI 404-1
2019
MEN
2020
MEN
WOMEN
48.13
33.06
WOMEN
44.60
41.85
AVERAGE HOURS OF EMPLOYEE BY POSITION
GRI 404-1
2019
MANAGEMENT
2020
MANAGEMENT
156.33
45.37
UNIVERSITY LEVEL
UNIVERSITY LEVEL
48.53
53.49
NON-UNIVERSITY LEVEL
NON-UNIVERSITY LEVEL
29.82
38.29
An employee performing motor tests. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE HEALTH & SAFETY EU16, GRI 403-7, 403-8
To this end, the next step will be to imple-
ment a management system within our
occupational safety governance struc-
ture. This will include providing training
to Health & Safety Department personnel
and managers and employees at oper-
ations, maintenance and engineering
departments, emphasizing the role that
managers play in engaging their teams
around an accident prevention culture
and safe operations. The Program will
also address the effective management
of critical risks and implementation of
preventive tools. GRI 103-2
We invest heavily
in preventing
occupational
illnesses and
protecting the
health of our
employees
DSS BRADLEY CURVE™ – ELETROBRAS GROUP COMPANIES
Health & Safety is a priority for Eletrobras.
In 2020, we engaged a prestigious and
experienced consulting firm to support us
in implementing a comprehensive pro-
gram to improve our current practices.
In the first phase of the Occupational
Health & Safety Program, we conduct-
ed a survey to elicit the views of Group
employees about our safety culture,
followed by a series of activities includ-
ing interviews with the senior leadership
team and on-site visits to benchmark
administrative and operational units at
all Group companies. The goal in this
phase was to assess occupational safety
practices and review documentation to
inform a baseline assessment of both the
management and leadership aspects and
the processes and routines involved in
Occupational Health & Safety manage-
ment at Group companies. As a deliver-
able from this phase, Group companies’
safety culture scores were plotted on the
DSS Bradley Curve™, a proprietary tool
developed by DuPont Sustainable Solu-
tions to benchmark the safety culture
transformation journey. Both the baseline
assessment and the self-assessment sur-
vey on Safety Culture placed our Group
Companies at the Dependent stage. The
challenge now is to progress to the Inter-
dependent stage, when Group compa-
nies will have instilled a preventive safety
culture among all teams and managers.
109
SDG
8
16
In 2020 the internal audit identified the
need for improvements in occupational
safety processes. These have since been
implemented by the Occupational Safety
department, and are being followed up
on by the Audit team. GRI 403-2
Although the level of exposure to risk
varies depending on the activity, Eletro-
bras Group companies invest heavily
across the board in preventing occupa-
tional illnesses and protecting the health
of employees through regular medical
checkups.
The Eletrobras Group has guidelines
in place on ensuring employee health,
safety and well-being through Occu-
pational Health Surveillance Programs
(PCMCO) and other health and wellness
programs. We are also supported by
Internal Accident Prevention Committees
(CIPAs), which regularly organize Internal
Occupational Accident Prevention Weeks
(SIPAT) and other initiatives to raise
employee awareness about health and
safety, such as training on fire fighting,
first aid, household hazards, risk aware-
ness and sexually transmitted diseases.
We also publish informational and edu-
cational videos and notices via internal
communications channels, addressing
prevention and maintenance of a safe
and healthy work environment.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Occupational Health & Safety man-
agement is assessed through regular
internal audits, organizational climate
survey questions on occupational health
and safety, and related key performance
indicators. In 2020, Eletrobras Group
companies were also supported by a
specialized consulting firm in conduct-
ing a safety culture survey that also
addressed related management aspects.
Employees discuss occupational health
and safety during Employee General
Meetings, events organized by Health &
Safety departments, and during SIPATs
and CIPAs.
In addition, occupational health and
safety is addressed in 15 sections and
52 articles of our National Collective
Bargaining Agreement, accounting for
28.85% of the provisions in the agree-
ment. GRI 403-4, 403-5
Field crews are provided with manda-
tory training as required by Brazilian
Regulatory Standards depending on the
level of exposure to risk. In 2020 there
were no employee fatalities as a result of
occupational injuries at Eletrobras Group
companies.
Our contracts with suppliers contain
provisions requiring them to comply
with Brazilian Regulatory Standard NR6.
Employee health and the workplace
environment are closely monitored by
our Specialized Occupational Health and
Safety Service (SESMT) against applica-
ble regulatory requirements. For suppli-
ers and contractors, contract managers
are formally designated to monitor these
aspects against contractual require-
ments previously established by the
SESMT.
Concerns relating to occupational health
and safety can be raised via the “Contact
Us” page on the Eletrobras website, by
selecting the health and safety service
channel. GRI 403-1
SDG
8
16
110
Health insurance GRI 403-6
Employees and dependents are eligi-
ble to health and dental insurance with
copayment but no monthly premiums.
Beneficiaries pay a portion of monthly
expenses on tests and doctor’s visits.
Employees can also receive reimburse-
ments where they choose non-network
healthcare providers. Ambulance service
is also available 24/7.
In 2020, with support from actuarial
and legal consultants, the percentage
of expenses paid by the sponsor/par-
ticipants under the plan were adjusted;
Occupational health
services GRI 403-3
A working group of representatives from the Oc-
cupational Safety departments at Group compa-
nies is responsible for developing and monitoring
occupational safety procedures, especially those
affecting the targets set in the PDNG, such as
reducing occupational injury and illness absen-
teeism rates.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE the rules on inclusion of dependents
were amended; and benefits were
standardized across Group compa-
nies, in compliance with Resolution 23
of the Joint Ministry Commission on
Corporate Governance and Manage-
ment of Federal Government Equity
Interests.
SDG
8
16
WORK-RELATED INJURIES AND ILL HEALTH - MONTHLY AVERAGE
(EMPLOYEES) GRI 403-10 , 403-9*
Lost Time Injury Frequency Rate (TFA)- (injuries/MHW)
Frequency Rate (TF)- (injuries/MHW)
Severity Rate (TG) – (injuries/MHW)
2020**
1.14
2.47
13.78
* As per the PDNG, in 2020 Itaipu and CEPEL were excluded from these calculations.
** There are no employees whose work or workplace involves occupational activities with a high incidence
or high risk of diseases related to their occupation.
Note1: This indicator is calculated based on the following assumption: in accordance with the Con-
solidated Labor Regulations, employees are defined as persons whose employment at the relevant
company is registered in their employment records, including the following categories: employees
based at the company, seconded or on paid or unpaid leave; rehired employees based at the company or
on secondment, direct employees on paid or unpaid leave or in elected positions and apprentices. The
following categories are not included: employees on secondment from other companies, interns and
the CEO and executive officers. GRI 102-48
Note2: The lost-time injury frequency rate (TFA), frequency rate (TF) and severity rate (TG) use the following
calculation for hours worked: the sum of monthly average hours worked x 167 x 12 (with 12/31/2020 as
the cutoff date). GRI 102-48
SUPPORT DURING THE COVID-19
PANDEMIC GRI 103-2, 403-1, 403-3,403-4, 403-5, 404-2
111
Eletrobras Group companies created
unified SARS-CoV-2 prevention pro-
tocols developed by professionals from
the Occupational Health & Safety de-
partments with advice from a specialist
physician. The topics addressed included
COVID-19 grading and travel during
the pandemic. We also created a digital
check-in tool designed to help prevent
virus spread at the workplace.
Rapid tests were administered to
monitor employee health, especially for
employees who continued to work on-
site, to map the epidemiological profile
of the workforce and inform monitoring
by the health departments at the Group
companies. A total of 76,820 COVID-19
tests were administered to direct and
third-party employees.
Employees terminated in 2019 were
interviewed and offered a channel for
questions and advice on matters such as
health insurance and retirement plans.
Learn more about the Eletrobras Group’s
pandemic response on our website.
To support employees in coping and
ensure their well-being during the pan-
demic, the Eletrobras Group created a
psychosocial support network of psychol-
ogists and social workers at Group com-
panies to provide online counseling and
advice, and referral to an expert where
necessary. Employee discussion groups
facilitated by experts were organized to
discuss topics such as anxiety, depres-
sion, organizing a home office, substance
abuse and healthy nutrition during the
pandemic.
Within our Energy & Health Program,
we launched health and wellness activ-
ities for employees and their families to
increase integration through our online
platforms and encourage employees to
continue to engage in wellness activities
even when working from home, at a time
when sheltering in place became nec-
essary, just as taking care of their health
became all the more essential.
To prevent transmission of the COVID-19
virus, we purchased partitions and per-
sonal protective equipment for employ-
ees, implemented temperature screen-
ing at entrances, installed alcohol gel
dispensers and disinfectant mats, placed
social distancing signage and markings
in all elevators, rooms and corridors, and
implemented enhanced, regular cleaning
procedures.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE SDG
16
DIVERSITY AND EQUAL OPPORTUNITY GRI
103-2, 103-3
112
In line with our commitment to diversity,
we strive to create an organizational
culture that provides equal opportunity
regardless of gender, sex, color, race,
ethnicity, age, sexual orientation, social
background, or physical or mental
disabilities, as expressed in our Code
of Ethical Conduct & Integrity and
Corporate Social Responsibility Policy.
We implement initiatives to promote
diversity among our stakeholders
through Gender, Race and Diversity
Committees at Group companies, and
since 2004 we have actively participated
on the Gender, Race and Diversity
Committee of the Ministry of Mining
& Energy and Subordinate Agencies
(COGEMMEV).
In 2010 we became a signatory of the
Women’s Empowerment Principles
(WEPs), which include principles on
diversity and equity.
Gender, Race and Diversity
Committee activities are guided
by recommendations issued by
COGEMMEV on reducing inequalities
and protecting rights, with a focus
on needed changes in people
management approaches and the
organizational culture.
We have subscribed to a number of
initiatives—including the UN Global
Compact, Women’s Empowerment
Principles and Sustainable
Development Goals—because we
recognize that Eletrobras Group
companies’ social commitments
to stakeholders are integral to
achieving business sustainability and
development.
As part of these commitments, we
work to expand corporate social
responsibility practices and create
new workplace approaches that foster
change, in both the organizational
culture and in people management
practices, toward equal opportunity
and equity between men and women
and for people of different ethnicities,
both in our own workforce and in the
broader supply chain.
A researcher at CEPEL. CEPEL Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE These initiatives are accompanied by
communications actions to prevent
discrimination and address any friction
between employees of different
profiles. We also seek to highlight
the positive effects that diversity and
providing equal opportunity have on
the company, our workforce and the
value chain.
Diversity in executive directors
positions
Eletrobras is working to promote
diversity across the governance and
management structure. Our Audit
Board currently has two female
members: Patricia Valente Stierli and
Thaís Márcia Matano. The Board of
Directors has one female member:
Lucia Casasanta.
The Executive Board has two female
members: Elvira Presta and Camila
Gualda. The ratio of women in
management positions (36%) exceeds
the ratio of women in the broader
workforce at Group companies
(19.01%) GRI 405-1
Under the Eletrobras Group Board
of Directors and Executive Board
Nominations Policy, members of
governance bodies are nominated for
their corporate experience, academic
background and other criteria, while
also taking gender, age and ethnic
diversity into account. GRI 405-1
113
Eletrobras works to promote
diversity across the governance
and management structure
SDG
8
16
RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN GRI 405-2
Basic Salary
Remuneration
Ratio of basic salary
of women to men
Ratio of
remuneration of
women to men
Middle
management
University
level
Non-
university
level
Women
R$ 15,939.24
R$23,952.76
Men
R$ 15,493.83
R$25,111.70
Women
R$10,658.96
R$13,708.47
Men
R$ 11,599.61
R$ 15,771.51
Women
R$6,084.52
R$ 8,219.84
Men
R$6,283.65
R$ 9,100.41
0.97
0.92
0.97
0.95
0.87
0.90
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE ENGAGEMENT WITH OTHER STAKEHOLDERS
GRI 102-43, 102-44, 103-2, 103-3
We value our
relationship with
our different
stakeholders and
take their interests
into account in
developing our
materiality matrix
and strategic plan
Investors, shareholders and
market analysts
The Eletrobras website has an exclusive
“Investor Relations” section in which
we publish information and documents
for financial-market agents (company
notices, calls for meetings, meeting
minutes, reports, earnings releases, and
other materials). We also have a regular-
ly updated channel for receiving sugges-
tions, complaints, compliments and re-
quests relating to the securities market.
This section also contains our investor
relations contact details (email address
and telephone number), a newsletter
sign-up link, and a Frequently Asked
Questions page. Our investor relations
web page can be accessed here.
Society
Customers and consumers
The Eletrobras website recorded
1,695,201 visits in 2020, a decrease of
18% compared to 2019, and a total of
1,432,081 unique page views. The most
visited pages in the year were: home,
extranet and investor relations.
In 2020 we conducted our 4th Integrated
Group Customer Satisfaction Survey, for
the two-year period 2019/2020. The
survey has been carried out every two
years since 2014 to measure the quality
of service delivered by Eletrobras Group
generation and transmission com-
panies, and identify opportunities for
improvement. With a focus on commer-
cial aspects, the survey polled custom-
ers ranging from trading companies,
through free consumers and potential
free consumers, to transmission system
(grid-connected) users. Respondents
included customers of Eletrobras Ama-
zonas GT, CGT Eletrosul, Chesf, Eletro-
norte, Eletronuclear and Furnas. The
consolidated results from the survey
were released in December. Eletrobras
performed well in the survey, with an
overall satisfaction rating of 88.83%,
higher than both our target of 87.98%
and the overall rating of 85.31% in our
previous two-year survey.
Media
In 2020, a total of 3,498 news articles
were published about Eletrobras, of
which 63% were positive and 37%
were negative. This figure includes
only high-impact news articles identi-
fied in media analyses by Eletrobras’s
press office, and does not exhaustively
account for our overall media coverage.
Of these articles, 1,487 were about the
capitalization of the company, with
61% taking an editorial position in
favor of and 39% against it.
114
SDG
16
Communities
In a collaboration with Bolivian state-
owned power utility Empresa Nacional de
Electricidad (ENDE), Eletrobras is carrying
out studies to inventory hydroelectric
potential in the Madeira River basin, along
the Brazilian and Bolivian border. Due to
the novel coronavirus pandemic, shel-
ter-in-place orders were issued in Brazil
and Bolivia during the year. As part of the
impacts on the project’s Social Commu-
nications and Engagement Program, we
were no longer able to collect suggestions
and complaints from our “Fale Conosco”
drop boxes; activities involving direct
interaction with communities, which had
begun in March 2020, were suspended;
and the Inventory Information Center in
Guajará-Mirim was closed to the pub-
lic. Questions were received by email,
telephone and WhatsApp. The most
frequently asked questions were about
the purpose of the hydroelectric potential
assessment. The communications team
clarified that the inventory assessments
are intended to identify sites suited for
building hydroelectric dams based on
technical, economic, social and environ-
mental criteria, and that no decision has
yet been made on the siting of future
dams. Questions from the public are still
being answered via virtual channels. Click
here to learn more.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE HUMAN RIGHTS
GRI 103-2
Eletrobras has implemented a project,
called “Engaging Stakeholders in the
Value Chain to Raise Awareness about
Human Rights”, that aims to provide
training, raise awareness and conduct
assessments on human rights risks in our
relations with stakeholders, especially
employees, suppliers and business
partners, and the communities where we
operate.
The project is structured into 9 sub-
projects and specific targets. Among
these is a target to train 100% of our
employees and Tier 1 suppliers on
human rights by 2021. By including
these targets in our strategy, we can
identify potential impacts on human
rights, and take responsibility in
monitoring them.
The project, implemented as part of our
Reputation & Engagement Program,
is integral to Eletrobras’s Sustainability
Program 4.0. The project’s scope and
guiding principles are based on the
United Nations’ (UN) Framework on
Business and Human Rights.
115
These human rights topics are included
among the principles/commitments
in the Eletrobras Supplier Code of
Conduct. In addition to due diligence,
suppliers are continuously monitored
by contract managers throughout
their relationship with Eletrobras. Any
violation of these ethical principles can
result in disciplinary and educational
action, as well as administrative and/
or legal action where the violation
involves a breach of contract and/or of
applicable laws and regulations.
In the year, a total of 534* suppliers
were identified as being at significant
risk for incidents of forced or
compulsory labor.
GRI 408-1, 409-1
* Building contractors and outsourced labor
providers are considered to be at the highest
risk for child, forced or compulsory labor. GRI
102-48
We have set a target to train 100%
of our employees and suppliers on
human rights by 2021 GRI 410-1, 412-2
We also conducted our Organizational
Climate Survey in the year, which
included questions to elicit employees’
views about human rights within the
company.
Our suppliers, joint ventures and special
purpose entities (SPEs) in which we have
equity interests answer due diligence
questionnaires to gage their positions
on eradicating discrimination, gender
and racial equity, combating workplace
and sexual harassment, eradicating
forced and slave labor, eradicating
child labor, collective bargaining rights,
employee Occupational Health &
Safety, and labor practices.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE EMPLOYEES TRAINED ON HUMAN RIGHTS* GRI 412-2
Total hours of training on human rights policies or procedures
116
SDG
8
2020
340
Total employees trained on human rights policies or procedures
3,262
Percentage of employees trained on human rights
policies or procedures
24.93%
*Eletrobras Eletropar has not reported this disclosure.
SECURITY PERSONNEL WHO RECEIVED TRAINING ON HUMAN RIGHTS
POLICIES OR PROCEDURES GRI 410-1
Total security personnel employed by the Company
Total outsourced security personnel
Number of directly employed security personnel trained on human
rights policies or procedures
2020
242
1,499
24
Total security personnel (directly employed and outsourced)
1,741
Number of outsourced security personnel trained on human rights
policies or procedures
729
Percentage of directly employed and outsourced security
personnel trained on human rights policies or procedures
43.25%
An employee in the control room at Angra.
Eletronuclear Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE AGREEMENTS AND CONTRACTS INCLUDING HUMAN RIGHTS CLAUSES* GRI
412-3
Total significant investment contracts concluded in the period
Total significant investment contracts that included
human rights clauses
Percentage of significant investment contracts that included
human rights clauses
77
77
100%
*Itaipu does not report this disclosure.
117
After being awarded contracts,
suppliers are regularly monitored
throughout the term of the
contract
Our Whistleblowing
Hotline is a one-stop
channel for all types
of concerns
Non-discrimination GRI 103-2, 103-3
Our Whistleblowing Hotline is a one-
stop channel where stakeholders can
report all types of concerns. However,
any report classified as “Discrimination”
is treated as a potential human rights
concern and is automatically assigned
maximum priority.
Freedom of association and collec-
tive bargaining GRI 103-2, 103-3, 407-1
Building contractors and outsourced
labor providers — such as cleaning and
security services companies — are con-
sidered to be at the highest risk for child,
forced or compulsory labor.
SDG
8
16
When screening suppliers, we assess
whether their proposals are consistent
with any collective bargaining agree-
ments for the relevant employment
category.
If an applicable collective bargaining
agreement exists and is not observed,
the supplier is rejected. After be-
ing awarded contracts, suppliers are
regularly monitored throughout the
term of the contract. Throughout our
relationship with suppliers and Special
Purpose Entities (SPEs), we administer
questionnaires to gage their positions
on eradicating discrimination, gender
and racial equity, combating workplace
and sexual harassment, eradicating
forced and slave labor, eradicating
child labor, collective bargaining rights,
occupational health & safety, and labor
practices, which are among the prin-
ciples/commitments in the Eletrobras
Supplier Conduct Guidelines.
These questionnaires are the starting
point for due diligence and initiatives to
help suppliers implement measures to
manage risks and prevent adverse im-
pacts and violations. They also provide
a baseline for subsequent monitoring
and mitigation of inadequate practices,
and for reporting and communications
on how negative consequences will
be addressed. Suppliers are continu-
ously monitored by contract managers
throughout their relationship with
Eletrobras.
In addressing negative impacts, we
apply penalties for violations in an
administrative process that can result
in suspension of the right to bid for
contracts with Eletrobras. Throughout
the contract, we work to mitigate risks
through relationship and contract man-
agement processes.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE CHILD LABOR GRI 103-2, 103-3, 408-1, 409-1
118
In 2020, we joined the Na Mão Certa
program, launched by the World Child-
hood Foundation, as a silver sponsor.
Our sponsorship includes both the
holding company and other Eletrobras
Group companies. The program works to
engage companies in combating sexual
exploitation of children and adolescents,
which has been recognized by the UN
as one of the worst forms of child labor.
We have developed an action plan for
implementation in 2021, with specif-
ic targets for each stakeholder group,
including suppliers.
Operations and suppliers at
significant risk for incidents of child
labor GRI 408-1
Building contractors and outsourced
labor providers are considered to be
at the highest risk for child, forced or
compulsory labor. GRI 102-48. In addition
to contractual clauses establishing
penalties for violations, any instances
of child or forced labor can be formally
reported to the Public Prosecution
Service. Invitations to tender require
prospective suppliers to observe
collective bargaining agreements and
ensure the rights established therein are
observed in their hiring practices.
In 2020, 534 suppliers onboarded by
Eletrobras Group companies were
registered as being at significant risk for
incidents of child labor.
Throughout our relationship with sup-
pliers, we administer human rights due
diligence questionnaires to gage their
commitment to eradicating discrimina-
tion, gender and racial equity, combating
workplace and sexual harassment, eradi-
cating forced and slave labor, eradicating
child labor, collective bargaining rights,
occupational health & safety, and labor
practices. These are among the princi-
ples/commitments outlined in the Eletro-
bras Supplier Code of Conduct.
In addition to due diligence, suppliers
are continuously monitored by contract
managers throughout their relationship
with Eletrobras. Any violation of these
ethical principles can result in disci-
plinary and educational action, as well
as administerative and/or legal action
where the violation involves a breach of
contract and/or of applicable laws and
regulations.
In 2010, we subscribed to the Corporate
Commitment to Addressing Sexual Vio-
lence against Children and Adolescents.
In November 2018, we signed the Open
Letter “Business for Human Rights”.
SDG
8
16
We joined the Na
Mão Certa program,
which engages
companies in
combating sexual
exploitation of
children and
adolescents
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 119
Impacts are identified and described
in environmental impact assessments
conducted for each project. Social and
environmental impacts are addressed
through social and environmental
programs required under our projects’
environmental licenses. (See the table
on page 120).
Specifically in relation to environmen-
tal impacts on local communities, the
Eletrobras Group Environmental Policy
(see the link here) and the Eletrobras
Group Corporate Social Responsibility
Policy (see the link here) contain guide-
lines on relocating communities affect-
ed by hydropower projects. Eletrobras
Group companies provide channels for
communications with stakeholders,
which can be either project-specific
or general communications channels,
such as Ombudsman’s Offices. EU20
In 2020, our Working Group for Affect-
ed Communities, under the Environ-
mental Committee, organized a virtual
round table with experts to discuss the
issue as it relates to the power sector,
including concepts such as social ac-
ceptance and case studies on commu-
nications, engagement and our social
license.
Our policy on relocating communities
affected by hydropower projects requires
that information about the projects,
their impacts, compensation measures,
assessment criteria, compensation
methods and the rights of affected
communities is permanently and trans-
parently available, in plain language, via
project-specific channels. Eletrobras
Group companies are required to en-
gage broadly with affected stakeholders
based on the principles of dialog, social
participation, transparency, and rep-
resentation—formal and informal—at
all decision-making levels by persons
named by communities.
Affected communities must be treat-
ed impartially, taking account of their
individual situation, informal relation-
ships and land ownership and land use.
Eletrobras Group companies are re-
quired to provide fair compensation that
allows affected communities to restore
their previous way of life with a level
of quality equal to or better than they
enjoyed before the project. If the parties
are unable to reach an agreement, there
are legal provisions under which a judge
can appoint an expert to appraise the
property.
Kayapó Project. Photo by Claudio Ribeiro
AFFECTED
COMMUNITIES
GRI 103-2, 103-3, 413-1, 413-2
Building and operating generation and
transmission systems can have varying
social impacts depending on the nature
of the projects and the regions where
they are developed. From early planning
and throughout operation, we address
social and environmental issues in accor-
dance with applicable laws and regu-
lations, our own corporate policies and
guidelines, and taking account of specific
local conditions, such as social structures,
culture and the relationship between
communities and nature.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE MANAGING IMPACTS GRI 413-1
KEY
120
A Communications and social engagement
B Environmental education
C Restoration of livelihoods
D Rehabilitation of disturbed land
E Institutional coordination
F Urban rehabilitation
G Public health
H Professional training
I Development of livelihood activities
J Public management support
K Restoration of touristic and recreational
activities
L Social support
M Support for affected communities
Type of activity/
project*
Examples of impacts **
Examples of mitigation/compensation measures
High expectations among local and regional communities and emerging/
increased social tensions
A
Restrictions on land use
Restrictions on the use of rights-of-way and adjacent land
Hydro, thermal, wind
and solar plants and
transmission systems
Increased migration flows
Economic stimulus
Higher municipal tax revenues
Direct job opportunities during construction
A, B, C, D
A, B, E, F, G
A, E, H, I
A, E, I , J
A, E, H
Increased technical and scientific knowledge about the region
A, B
* Where the impact is most likely to occur, but will not necessarily occur in every case. Regardless of the project stage.
** The magnitude and scale of the impact depend on the size of the project and the region where it is developed.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 121
Type of activity/
project*
Hydro, wind and
solar plants and
transmission systems
Hydro and wind
Examples of impacts **
Examples of mitigation/compensation measures
Adverse effects on touristic potential (degradation of scenic beauty)
A, K
Adverse effects on scenic, paleontological, archaeological and cave sites
Impacts on traditional, indigenous and/or other ethnic communities
A, B
Paleontological and archaeological research, monitoring
and salvaging, and protection of scenic and cave sites.
A
Support for affected communities as outlined in
Indigenous Component Studies and Basic Plans for
Indigenous Components
Impacts on ways of life and social and cultural relationships
A, B, L, M
Property valuation
Increased real estate speculation
A, F
Compulsory relocation of urban and rural communities
A, M, C, L
Hydropower dams
Loss of livelihoods (farming, non-timber forest products, mining, fishing)
A, M, C
Capacity building for fishing communities, support for
aquaculture projects
Disruption/loss of transportation routes and communications systems
A
Road improvements and repairs
* Where the impact is most likely to occur, but will not necessarily occur in every case. Regardless of the project stage.
** The magnitude and scale of the impact depend on the size of the project and the region where it is developed.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 122
We identify impacts from our projects on
the communities where we operate and
implement measures to mitigate and/or
offset those impacts
Type of activity/
project*
Examples of impacts **
Examples of mitigation/compensation measures
Thermal power plants
Adverse effects on air quality from particulate and dust emissions, etc.
A
Air quality monitoring, installation of equipment to reduce
these emissions
Wind farms
Shadow flicker
Avoid developing wind farms near populated areas
Solar farms
Flash blindness
Avoid developing solar farms near populated areas
Presence of maintenance crews on rights-of-way
A, B
Specific initiatives addressed to indigenous communities
Noise from transmission lines
A
Transmission Lines
Increased vulnerability
* Where the impact is most likely to occur, but will not necessarily occur in every case. Regardless of the project stage.
** The magnitude and scale of the impact depend on the size of the project and the region where it is developed.
A
Territorial protection, strengthening of indigenous
organizations (in the case of indigenous reserves), support
for livelihood activities, awareness raising about the
environment and indigenous peoples, environmental
education
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Eletrobras Group companies conduct
participatory social assessments to
inform communications plans, engage-
ment with local communities, environ-
mental education programs, and other
engagement activities. Communities are
informed about grievance mechanisms
for addressing concerns about the com-
pany’s activities.
Community safety GRI EU21
Our Emergency Response Plans outline
roles, responsibilities and measures to
effectively respond to an emergency.
Each project has its own Emergency
Response Plan, addressing social and
environmental aspects in the event of
natural disasters, spills, fires, security
breaches, strikes, reputational crises,
and other events.
Emergency responder teams and em-
ployees working in high-risk areas are
trained on how to respond in the event
of an emergency. At Eletrobras Eletro-
nuclear, for example, annual drills are
conducted under the oversight of the
appropriate authorities.
123
OPERATIONS WITH LOCAL COMMUNITY ENGAGEMENT GRI 413-1
Number of operations with local community engagement, impact
assessments, development and other programs
440
Percentage of operations with engagement programs (%)
65.48%
Note: The number of operations in this disclosure refers to those listed by the National Grid Operator
(ONS) as strategic assets, as well as other operations that are monitored by Group companies pursuant to
technical standard. GRI 102-48
• In computing the percentage of operations with engagement programs, CHESF was deemed to have
engagement programs in all its operations in the form of a range of initiatives, such as the dissemination of
communications channels (e.g. environmental and fire reporting hotlines).
RIGHTS OF INDIGENOUS PEOPLES GRI 103-2
Eletrobras Group’s Corporate Social
Responsibility, Environmental and Sus-
tainability policies contain guidelines on
preserving and safeguarding the rights
of indigenous peoples.
Group companies monitor impacts
on indigenous communities through
assessments during the environmental
licensing processes, including periodic
visits, studies and technical reports.
Our approach to managing the rights of
indigenous and traditional peoples aims
to ensure that our compensation and
mitigation programs are compliant and
the measures we take are effective.
In May 2020, we became aware that
Eletrobras had been excluded from the
Norwegian Government Pension Fund
Global portfolio over alleged human
rights violations caused by the Belo
Monte hydropower project developed
by Norte Energia S.A (SPE Belo Mon-
te), a joint venture of which we hold a
49.98% stake along with other govern-
ment-owned and private companies.
During the construction and early op-
eration of the Belo Monte dam, Norte
Energia S.A. implemented social and
environmental initiatives to mitigate and
offset potential negative impacts from
Communities
are informed
about grievance
mechanisms for
addressing concerns
about the company’s
activities
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SDG
7
8
the project in the region, as part of the
environmental licensing process.
Eletrobras and Norte Energia therefore
reject the notion that the project may
have contributed to or been responsible
for human rights violations. We believe
that our investments in the region were
planned and implemented in such a way
as to adequately remediate or mitigate
impacts, especially given the rigor of
Brazil’s environmental licensing process
and the stringent requirements imposed
on the Belo Monte project, which be-
came a major milestone in the history of
environmental licensing in the country,
due to both the scale of the measures
required in the region and the technical
and financial resources employed in
implementing them. Construction of the
Belo Monte dam also involved significant
efforts to establish dialog with commu-
nities—both indigenous and non-in-
digenous—in the area affected by the
project. Learn more.
Kayapó Project GRI 413-1
Eletrobras has developed projects in
Kayapó communities along the Middle
Xingu River, in southern Pará. These
projects have been implemented in
partnership with the National Founda-
tion for Indigenous Peoples (FUNAI),
Norte Energia, and organizations rep-
resenting the Kayapó, as a commitment
undertaken as part of the licensing
process for the Belo Monte Dam. The
goals of these projects are to strengthen
indigenous associations, monitor and
protect the indigenous lands involved,
support sustainable economic activities,
and preserve the culture of the Kayapó.
The project is funded by Norte Energia,
with Eletrobras monitoring and man-
aging relations with communities, in
an area of the Xingu River basin that is
strategic for the business. Due to the
pandemic, in 2020 many activities within
the project were suspended, and efforts
were refocused on initiatives to pre-
vent COVID-19 transmission by helping
communities to shelter in place within
their villages.
The pandemic and our initiatives in
indigenous communities
Amid the COVID-19 pandemic, dis-
tribution of supplies was our primary
relief initiative in indigenous commu-
nities in 2020. Learn more on page 10
(COVID-19 chart).
The pandemic required us to postpone
several initiatives as part of the envi-
ronmental licensing process, due to
restrictions on travel and shelter-in-place
orders. However, we expanded our insti-
tutional collaborations, especially with
FUNAI, to support communities and our
corporate social responsibility initiatives.
124
Environmental protection
in partnership with FUNAI
Eletronorte also supports environmental protection in areas
impacted by our projects. These efforts are implemented
in partnership with the National Foundation for Indigenous
Peoples (FUNAI). The indigenous peoples supported by
Eletronorte include:
Waimiri Atroari
AMAZONAS AND RORAIMA
2,585,910 HA
(AMAZON FOREST)
Parakanã
PARÁ
351,600 HA
(AMAZON FOREST)
Trocará
PARÁ
21,722HA
São Marcos
RORAIMA
654,110HA
Krikati
MARANHÃO
144,775HA
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MATERIAL TOPICS
125
WATER
EMBEDDING SOCIAL AND ENVIRONMENTAL
ISSUES IN DECISION-MAKING
CLIMATE CHANGE
ENERGY TRANSITION
Planet
A bird at FURNAS. Photo: Alexandre Sampaio
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE PLANET
Business impacts on the environment can
result in significant societal harm, and the
response to these impacts by customers,
regulators and other stakeholders
can create material business risks and
opportunities. It is therefore critical to
understand the environmental impacts
associated with upstream and downstream
activities to know whether environmental
impacts present a threat to long term value
creation, and design actions to prevent or
mitigate each of those impacts.
126
SDG
8
ENVIRONMENTAL
MANAGEMENT SYSTEM GRI413-1
These initiatives are implemented in
compliance with applicable Brazilian
laws and regulations, and are assessed
and monitored by environmental licens-
ing authorities.
In 2020 the Eletrobras Group retained
ISO 14.001 certification for the follow-
ing operations: Eletrobras Eletronorte’s
Tucuruí and Coaracy Nunes hydropow-
er plants, and maintenance operations
at Eletrobras Chesf’s Paulo Afonso
substations.
At Eletrobras Furnas’s thermal power
stations in Rio de Janeiro, independent
audits will be conducted for compli-
ance with State Law no. 1898/91 and
Directive 056 R.3 on environmental
audits (approved by Resolution no. 21,
May 7, 2010).
Learn more about our Environmental
Management System here.
Sound, responsible environmental
management is essential to the sus-
tainability of our operations and our
value creation model, as our business
is directly reliant on natural resourc-
es. Eletrobras has an Environmental
Management System structured into
three core pillars: the Eletrobras Group
Environmental Policy, the Eletrobras
Group Environmental Committee and
our Corporate Sustainability Disclosures
System (IGS System).
In developing our projects, we carry
out assessments to identify and assess
environmental and social impacts,
which are then submitted to environ-
mental licensing authorities for review.
These assessments may indicate the
need for changes in the project design
to mitigate impacts. For each impact
identified in an environmental impact
assessment, the resulting basic envi-
ronmental plan outlines mitigation and
offset measures to be taken before,
during and after development of the
project. During operation, monitoring
activities may indicate the need for
further action and investments in tech-
nology and operational processes to
mitigate impacts. In 2020, we invested
a total of R$ 886.2 million in social and
environmental initiatives.
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127
Water withdrawals in our operations are
monitored in terms of quality and quanti-
ty, and the resulting data is submitted to
the appropriate authorities.
In relation to water quality, our opera-
tions have environmental licenses and,
under those licenses and whenever
required by environmental authorities,
reports are issued on water quality mon-
itoring results. Technical inspections are
carried out in our operations to assess
raw and potable water systems, including
treatment, use and impoundment. In-
spections are performed periodically and
whenever the production process is mod-
ified, based on applicable regulations.
Laboratory tests evaluate the quality of
the water supplied to and the effluents
discharged from our operations.
WATER GRI 103-2, 103-3, 303-1
The Eletrobras Group relies on water
for both its operational (hydropower
and thermal power plants) and admin-
istrative activities, and therefore water
shortages are one of the primary risks
to our business.
The water flowing through our hydro-
power plants is not consumed and is
returned in its entirety to the down-
stream water body with the same level
of quality as at the intake. The Eletrobras
Group operates hydroelectric plants in all
regions of Brazil, largely in the São Fran-
cisco, Tocantins, Paraná, Paraíba do Sul
and Grande river basins, where most of
our installed capacity is located. Hydro-
power accounts for approximately 90%
of the Eletrobras Group’s total installed
generation capacity.
The water used at thermal power plants
is sourced from surface water bodies
and treated for use in cleaning, cooling,
human consumption and steam gener-
ation. The water used at thermal power
stations may be consumed depending
on the plant’s generation process. The
water that is not consumed is returned to
the source water body at a level of quality
that complies with applicable environ-
mental standards. Thermal generation
represents 4% of the Eletrobras Group’s
total installed generation capacity.
Cultivando Água Boa Program. Itaipu Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 128
For administrative activities, water for
consumption is largely supplied by local
water utilities. Water for consumption
that is not sourced from local utilities
may be withdrawn from surface or
groundwater bodies, and treated at a
water treatment plant or via a simplified
treatment method, such as chlorination.
Following use and appropriate treat-
ment, wastewater is discharged to recipi-
ent bodies or infiltrated into the soil.
Alongside qualitative and quantitative
water monitoring activities, Eletrobras
Group companies engage stakeholders
in awareness-raising, education and
compliance surveillance activities.
Water consumption in administrative
activities is monitored against indica-
tors aligned with the 2030 Agenda, and
is reported to the Eletrobras Board of
Directors via the Strategy, Governance
& Sustainability Committee.
The indicator we use to track water
performance indicates the extent to
which we are meeting our commitment
to reduce utility water consumption
in administrative activities. PDNG
2018-2022 establishes targets for
reducing administrative consumption
of utility water (m3) only, as most water
withdrawals are used in hydropower
generation and are fully returned to
the downstream water bodies. The
plan sets an annual reduction target
of 0.30%, and an aggregate target of
1.5 % by 2022. Initiatives to support
these targets are implemented collab-
oratively across different departments,
especially the Facilities (responsible for
building maintenance) and Sustainabil-
ity departments.
A Group-wide Water Stewardship
Policy provides guidelines on the
sustainable use of water resources.
Read our Policy here.
Experimental Hydraulics Laboratory. Furnas Archives
Our target
is to reduce
water usage
by 0.3% per
year
Water withdrawal quantities are es-
tablished in the relevant withdrawal
permits, generally issued by the Bra-
zilian Water Agency (ANA), specifying
withdrawal limits, required controls
and the need for a monitoring plan
throughout the term of the permit. If
the project owner fails to comply with
these requirements, the permit is can-
celed and no further water withdrawals
are permitted. Our operations have
permits for water withdrawal.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 129
Water resource studies for
hydropower projects
At the design stage of hydropower
projects, Eletrobras Group companies
conduct studies to estimate water
consumption and water availability at
the project site over the concession
period (35 years).
These studies take account of the guide-
lines in the National Water Resource
Plan (PNRH), which outlines water-use
scenarios for river basins in Brazil and
provides guidance on state and river-ba-
sin management plans. Eletrobras Group
companies work with the National Grid
Operator (ONS) in planning the opera-
tion of the National Grid. This includes
establishing a “risk-averse curve”,
which defines the minimum volume of
impounded water to be maintained in
reservoirs throughout Brazil.
Environmental Impact Assessments for
projects developed by Eletrobras Group
companies establish the minimum dis-
charge rates required to sustain ecosys-
tems, species and ecological processes
downstream of the relevant dam. For
thermal power plants, the quality and
temperature of the water returned to the
water body are ensured to cause mini-
mal impact on ecosystems and habitat.
The Eletrobras Group allocates financial,
human and technological resources for
qualitative and quantitative water mon-
itoring programs to ensure the avail-
ability and quality of water resources for
hydropower generation and other uses.
The Manso Dam. Furnas Archives
During the environmental impact
assessment phase preceding project
development, we implement communi-
cations plans that establish communi-
cations channels with different stake-
holders to answer questions and provide
clarification. In the impact assessments
preceding hydropower projects, water
stewardship is one of the key concerns.
Each Group company also has a ded-
icated communications channel for
water-related matters. The holding
company has a dedicated channel for
Environment-related concerns, includ-
ing water-related matters. This channel
is accessible via the Contact Us form.
In 2020 the Eletrobras Group worked
with ANA, river basin committees, state
water resource boards and the National
Council on Water Resources (CNRH) to
maintain a hydrographic network that
records upstream and downstream
water levels, intake flow rates, and other
parameters. Water quality in our reser-
voirs is monitored on physical, chemical
and biological parameters specified in
environmental licenses.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 130
Belo Monte
Hydrograph
During the feasibility studies as
part of the environmental licensing
process for the Belo Monte Dam,
a Consensus Hydrograph was
established to reconcile the operation
of the future hydropower plant with
the use of water resources in Volta
Grande do Xingu, in the reduced
flow reach (RFR) downstream of
the main dam. The relevant water
resource and environmental licensing
authorities approved the Consensus
Hydrograph and published the
related regulatory documents.
The Brazilian Water Agency (ANA)
issued a Water Availability Reserve
Declaration (DRDH), and the federal
environmental agency, IBAMA,
issued a preliminary license for the
Belo Monte Dam. Based on these
documents and the established
Consensus Hydrograph, the Brazilian
Energy Research Corporation (EPE)
calculated the plant’s guaranteed
capacity for the purpose of
participation in a power auction.
an approximate cost of R$ 158
million. IBAMA will maintain the
Consensus Hydrograph to January
31, 2022, until the supplementary
studies requested from the project
owner (to be delivered no later than
12/5/2021) have been reviewed.
We highlight that, because the
decision applied only to 2020 and
because of the reduced demand due
to the pandemic, there have been
no financial impacts or generation
losses for NESA at this time.
Learn more:
NESA
IBAMA
Learn more about NESA’s social and
environmental initiatives.
However, this remained a subject
of discussion in different sectors of
society, including the company itself.
In December 2019, IBAMA issued an
opinion recommending that, beginning
in 2020, a Provisional Hydrograph
differing from the Consensus
Hydrograph be used until further
information and studies are submitted
to and assessed by IBAMA.
Norte Energia (NESA) has held technical
discussions with the environmental
authority to provide clarifications
at the administrative level. In these
discussions, the company has
emphasized that any changes to
the provisions of the concession
agreement and environmental license
would be contrary to the principles of
legal security and would impugn the
legitimacy of future administrative acts,
as well as resulting in a significant loss
of power supply to the National Grid.
On 2/8/2021, NESA and IBAMA
signed an Environmental Commitment
(TCA) under which NESA agreed to
implement additional offset and
mitigation measures in relation to the
RFR and the Consensus Hydrograph.
These mitigation measures will involve
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Water withdrawal, consumption and discharge
GRI 303-2, 303-3, 303-4, 303-5
Water for administrative operations in urban areas is
largely sourced from water utilities. Where our offices
occupy an entire building, water consumption data is
entered in the IGS System based on water utility invoic-
es. Where a building is shared with other companies,
water consumption is estimated.
The quality of the water supplied to our operations
must be compliant with National Counsel for the Envi-
ronment (CONAMA) Resolutions 357/05, 396/08 and
430/2011, which contain water classification and envi-
ronmental requirements for withdrawals from surface
and groundwater, as well as rules and requirements for
discharging wastewater.
Our procedures to ensure compliance at our facilities
may include observations made by water resource
users (self-monitoring) in accordance with the relevant
regulatory frameworks (CONAMA Resolution 357),
environmental license conditions and permit require-
ments. Both the frequency of monitoring and the
parameters monitored are established by the relevant
authorities.
The total volume of water discharged by our subsidiaries’
operations into rivers experiencing critical or very critical
water stress was 3,152,891.52 thousand m³ in 2020, as
measured using the methodology established by ANA.
131
The Santo Antônio Dam. Photo: José Lins
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Amazonas GT - GRI 303-3, 303-5: The reported groundwater
withdrawals for administrative activities are for the period from June to
December 2020.
Itaipu - GRI 303-3: The surface water withdrawals reported by Itaipu
Binacional in 2020 were for the Dam offices and the Itaipu Technological
Park. Surface water withdrawals for the Bela Vista Biological Reserve (RBV)
and industrial activities, which are not included, amounted to 257,388 m³.
Eletronorte - GRI 303-3, 303-4, 303-5: Data on administrative
consumption has been omitted. Up to 2019, monitoring was done
on-site at our different operations. However, in 2020, with more than
80% of employees working from home due to the pandemic, on-site
monitoring could not be maintained during every month of the year.
With the pandemic continuing into 2021, we are currently assessing
alternative monitoring approaches suited to the current context.
Chesf - GRI 303-3: Groundwater withdrawal data are not being
reported as water meters were defective at some facilities and missing
at others, especially in shallow wells. These meters are currently being
repaired or installed and consumption will be reported from March 2022.
Chesf - GRI 303-5: Utility water consumption at Chesf substations
in 2020 was calculated based on a per-capita average of 50 liters per
day, the standard consumption rate assumed in sizing and designing
plumbing systems. The employee headcount at each substation was
determined and this headcount was multiplied by 50 l of water per day,
and by 365 days per year to arrive at a total consumption of 10,439 m³ of
water in 2020.
Furnas - GRI 303-3: 1) The reported groundwater withdrawals for
administrative activities are exclusive of data for the Serra da Mesa and
Gurupi divisions, as these operations have no meters. 2) The volume of
surface withdrawal referring to administrative activities does not include
the withdrawal of water for fish farming activities, which corresponds to
2 million m³.
GRI 303-4: The total volume of discharged water was calculated based
on the values of the turbined water flow through hydropower dams and
surface water (excluding fish farming activities, when applicable) for use
in administrative activities.
GRI 303-5: Consumed water is, for applicable protocols in Eletrobras
companies, utility water and rainwater consumed by administrative
activities, although it is possible that part of the surface water has been
consumed by companies. In 2020, groundwater was considered as
consumed water when used in administrative activities.
Total water withdrawal by source (1,000 m3) GRI 303-3
Administrative activities
4,087.30
3,448.26
1,428.64
2018
2019
2020
Surface water
Groundwater
Rainwater
Utility water
4,087.30
3,448.26
459.40
219.86
-
0.56
481.10
418.62
865.58
227.99
0.36
334.70
Thermal power generation
3,301,929.80
3,798,140.35
3,363,072.38
Surface water
Utility water
Seawater
Wind farms
Surface water
Groundwater
Hydropower
Surface water
Total water withdrawal in 2020
Total water discharge in 2020 GRI 303-4
Total water consumed in 2020* GRI 303-5
10,620.50
14,560.21
72,914.10
0.2
0.14
-
3,291,309.10
3,783,580.00
3,290,158.28
0.02
-
0.02
921,501,969.97
921,501,969.97
924,866,471.01
924,865,907.96
563.05
* Eletrobras (through its subsidiaries) monitors water withdrawal and discharge for hydroelectric power generation (non-consumptive) in areas with
water stress. Eletrobras Group companies consume no water in areas with water stress.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Water usage by Eletrobras Group companies GRI 303-3
Type of withdrawal
Total m³
Annual volume of turbined water flow through hydropower dams
921,501,969.97
Total annual volume of turbined water flow through hydropower dams located on
rivers experiencing (critical or very critical) water stress based on the Brazilian Water
Agency (ANA) methodology
3,152,891.52
133
The Tucuruí Dam. Photo: Rony Ramos
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CLIMATE CHANGE GRI 103-2
SDG
13
Climate change is a priority topic and
one of our strategic drivers, as it can
directly affect the sustainability of our
business.
Ensuring that GHG emissions manage-
ment programs are in place, identify-
ing and assessing the vulnerability of
the business to climate change, prior-
itizing renewable energy projects, and
advancing research are some of the
ways the Eletrobras Group is working
to address climate change.
By pursuing a corporate strategy that
takes climate change into account,
we are supporting the global effort to
contain global temperature rise and
transition to a low-carbon economy.
The Eletrobras Group Environmental
Policy outlines specific guidelines on
climate change for Group companies.
Greenhouse Gas (GHG) emissions are
intrinsically linked to climate change,
and are therefore annually measured
and reported by Group companies.
The Eletrobras Group Greenhouse
Gas Emissions Inventory follows the
methodology recommended by the
Intergovernmental Panel on Climate
Change (IPCC, 2006) and the guide-
lines of the Greenhouse Gas Protocol
(GHG Protocol - WRI, 2004), the most
widely used approach to quantifying
and communicating GHG emissions.
We operate guided by air emissions
requirements contained in applicable
regulations and our environmental
licenses, and monitor air emissions at
our plants. Monitoring results are re-
viewed by the environmental authori-
ties that license the relevant projects.
The Strategic Working Group on Climate
under the Eletrobras Group Environ-
mental Committee (CMA) is responsible
for developing our Greenhouse Gas
Emissions Inventories, coordinating
assessments, and recommending strate-
gies to address climate change issues at
Group companies.
The Cerro Chato Wind Farm. Photo: Hermínio Nunes
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METHODOLO-
GY
• GHG Protocol
• IPCC (2006)
• Operational
control approach
GRI 103-2
EMISSION FAC-
TORS
• Electricity (MCTI)
• Energy content in
fuels:
BEN (2015)
IPCC (2006)
MMA (2011)
SCOPE 1
SCOPE 2
SCOPE 3
• Emissions per
unit of purchased
electricity
• Transmission
losses.
• Independent power
producers (IPPs)
• Air travel
• Transportation of
non-energy products
• Transportation of
fuels
• Employee
commuting
• Direct point-source
emissions (thermal
power stations)
• Mobile-source
emissions
• Fugitive emissions
(SF6 refrigerants)
• Wastewater; and
• Other point
sources:
LPG, natural gas and
diesel fuel used by
generator sets and
auxiliary boilers.
Gases: CO2, CH4, N2O, SF6, PFC, HFC
CALCULATE GHG EMISSIONS
STRATEGIC WORKING GROUP ON CLIMATE
CHANGE
TRANSMISSION LOSS
DATA
IGS SYSTEM
ELETROBRAS GROUP
TRANSMISSION
DIVISION
COMPILE AND SUBMIT QUANTITATIVE DATA
COMPANY 1 | COMPANY 2 COMPANY 3 | COMPANIES...
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136
We are committed to increasingly mini-
mizing negative impacts and advancing
the transition to a new development
model based on a low-carbon economy.
Supporting Sustainable Development
Goal (SDG) 13 – Climate Action of the UN
2030 Agenda has been prioritized by se-
nior management and is addressed in the
PDNG through a set of climate change
indicators and targets, including reducing
emissions, electricity consumption and
use of fossil fuels.
The holding
company has set
a target of zeroing
net GHG emissions
from 2021
Of the 12 projects within the Sustain-
ability Program 4.0, a component of the
PDNG, two are related to climate change
management within the Group: Energy
Transition, and GHG Emissions Offsets
and Environmental Protection.
In 2020, Eletrobras Group’s total
greenhouse gas emissions amounted
to 6,046,209.75 tCO2 equivalent.
As expected, the bulk of emissions are
scope 1 (68.87% of the total), followed
by scope 3 (22.8% of the total) and
scope 2 (8.32% of the total). Across
the three scopes, emissions in 2020
increased by 2.52% compared to 2019.
The increase is primarily explained
by electricity purchased from
Independent Power Producers (IPPs)
by Amazonas GT and Eletronorte,
resulting in significantly higher scope
3 emissions (emissions increased more
than 120 times).
SOx and MP10 emissions fell by
approximately 9.5% and 19.5%,
respectively, from 2019. NOx
emissions declined by 15.5% from the
previous year.
In 2020 Eletrobras Group companies
consumed 25,366,328 MWh, an
increase of 7% compared to the
previous year. Of this total, 17,753,022
MWh (70%) was direct consumption
(Scope 1) and 7,613,306 MWh (30%)
was indirect consumption (Scope 2 +
Scope 3), of which 549,744.33 MWh is
self-generated consumption.
Serra do Facão Dam. Furnas Archives.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE EMISSIONS (tCO2e)
GRI 305-1, 305-2, 305-3 , 305-5
GHG EMISSIONS INTENSITY
GRI 305-4
Scope
2018
2019
2020 Change 2019 x 2020
Scope 1, 2 and 3
2019
2020
137
Scope 1
5,350,290
5,227,207 4,164,151
Scope 2
670,337
659,298
503.305
-20%
-24%
Scope 3
42,813
10,879 1,378,753
12,574%
Total
6,063,440
5,897,384 6,046,210
3%
NITROGEN OXIDES (NO
SIGNIFICANT AIR EMISSIONS GRI 305-7, 102-48
), SULFUR OXIDES (SO
X
Scope
NOx (t/year)
SOx (t/year)
), AND OTHER
X
2019
2020
8769.10
7,410.97
10816.70
9,787.93
Particulate Matter (PM) (t/year)
425.22
341.52
ELECTRICITY CONSUMPTION (MWH) IN 2019 AND 2020
Per unit of net electricity produced
(tCO2e / MWh)
Per unit of net operating revenue
(tCO2e/NOR)
0.040
0.038
0.198*
0.211
Scope 1 and 2 ex-losses
2019
2020
Per unit of net electricity produced
(tCO2e / MWh)**
0.036
0.027
Per unit of net operating revenue
(tCO2e/NOR)
0.176
0.145
Notes: Reported greenhouse gas emissions include CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3.
*GHG emissions intensity per unit of net operating revenue was recalculated as net oper-
ating revenue in 2019 was restated in the Consolidated Financial Statements for fiscal year
2020. GRI 102-48
** Emissions intensity per unit of net electricity produced is exclusive of electricity generated
by SPEs.
Energy
consumption (MWh)
2019
2020
Scope 1
Scope 2
Scope 3
Scope 1
Scope 2
Scope 3
Renewable fuel
consumption
40,546
Fossil fuel consumption
21,963,510
-
-
2,395
11,111
21,003
17,741,911
-
-
5,396
6,803,294
Electricity consumption
- Purchased from the grid
Electricity consumption -
Self-generated
Total
-
-
247,608
1,429,743
-
-
-
-
254,872
549,744
-
-
23,704,805
25,366,328
The information in the “Electricity Consump-
tion” table published on 5/27/2021 was restated
on 6/8/2021. Originally reported figures were
expressed in tCO2e and had to be restated in MWh
as indicated in the table header.
For further information and detailed data about
the gases reported, emission factors, the report-
ing year, and methodologies and assumptions,
see the Eletrobras Group’s GHG Emissions Inven-
tory on our website, which is published annually
in accordance with the IPCC (2006) methodology
and the guidelines outlined in the Greenhouse Gas
Protocol (GHG Protocol -WRI, 2004).
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 138
BIODIVERSITY
GRI 103-2, 304-2, 304-3, EU 13
SDG
15
The Eletrobras Group strives to minimize
impact on biodiversity in the planning,
implementation and operation of our
assets. Managing and minimizing impacts
on biodiversity is a priority in our busi-
ness strategy and a requirement in our
projects—from planning to operation.
Strengthening initiatives to preserve
and restore biodiversity and ecosystem
services in the regions where we operate
is also part of our strategy in this area.
Our approach to managing biodiversity is
guided by the Eletrobras Group Envi-
ronmental Policy and recommendations
made by the Working Group on Water
Resources and Biodiversity, under the
Eletrobras Environmental Committee,
which is also responsible for coordinating
and conducting related studies for Group
companies.
We also participate in external forums on
issues related to biodiversity, including
the Thematic Chamber on Biodiversi-
ty and Biotechnology (CTBio) and the
Brazilian Business Council for Sustainable
Development (CEBDS).
Managing and
minimizing
impacts on
biodiversity
are a priority
An amphibian at Furnas. Photo: Alexandre Sampaio
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 139
Managing Impacts
GRI 304-2
Our most significant impacts on biodi-
versity occur during the development
and operation of our projects, and we
therefore conduct impact assessments
at the planning stage to identify spe-
cies and map out their habitats, with a
particular focus on rare, endemic and
threatened species.
Initiatives are then proposed to reduce,
mitigate, remediate and/or offset iden-
tified impacts in order to prevent risks,
in accordance with the principles and
guidelines established in the Eletrobras
Environmental Policy. We take biodiver-
sity into consideration from the initial
planning through the operation of our
projects, by identifying and assessing
the most significant impacts and then
implementing action to mitigate and
offset those impacts. A summary of our
most significant direct and indirect im-
pacts and actions taken to address them
is provided below.
Type of activity/
project
Direct impacts
Indirect impacts
Initiatives/programs
Hydropower dams
Conversion of river
ecosystems from lotic to
lentic.
Changes in water quality,
habitats loss, proliferation of
macrophytes, loss of species
and/or alterations in aquatic
communities
Water quality monitoring program;
aquatic fauna monitoring program;
aquatic fauna management program.
Hydropower dams, solar
farms, transmission
lines, wind farms
Loss of vegetation cover
Changes in water quality,
habitats loss, proliferation of
macrophytes, loss of species
and/or alterations in aquatic
communities
Disturbed land rehabilitation
program; fauna and flora
management programs; germplasm
banks
Hydropower dams, solar
farms, transmission
lines, wind farms
Changes in ecosystems/
habitats
Loss of flora and fauna
diversity
Support in creating and/or
maintaining protected areas; fauna
and flora monitoring programs;
fauna and flora management
Hydropower dams
Impacts on fish migration
Isolation of populations; loss
of and/or changes in fish
species.
Fish monitoring; fishways; fish fauna
management
Transmission lines,
wind farms
Impacts on bird migration
patterns and collisions
Reduction of migratory bird
populations
Siting wind farms away from
migration routes; installing signaling
equipment to prevent collisions
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Initiatives GRI 304-2, 304-4
In 2020, Sustainable Development Goal
(SDG) 15 – Life on Land was prioritized
by Group companies and biodiversity
indicators and targets were set in our
Business & Management Master Plan.
These targets aim to enhance efforts to
preserve and restore biodiversity in the
regions where we operate.
140
Indicator
Target
Timeframe
Baseline
Total area protected and/or reforested by the company
Zero loss of vegetated and/or forested area
caused by subsidiaries’ activities
Annual for 5 years
Species in the IUCN Red List and national conservation lists included
in programs to preserve threatened species
Inclusion of new threatened species in
conservation programs
Annual for 5 years
Investment in projects supporting biodiversity management
A 1% annual increase from the baseline %
Annual for 5 years
Biomass carbon stocks (t)
A 5% annual increase from the previous year
Annual for 5 years
2021
2021
2021
2021
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Key biodiversity conservation
initiatives in 2020 GRI 304-3
141
Eletrobras
Chesf
• Mata do Junco Wildlife Refuge
Reforestation Project: A 10.35 ha area
that has been rehabilitated with 20,000
seedlings of native Atlantic Forest
species, in the Mata do Junco Wildlife
Refuge in Capela, Sergipe, Northeastern
Brazil.
• Protected Area Rehabilitation
Management Program: 14.4 hectares
along the Socorro /Penedo 230 kV
Transmission Line are being rehabilitated
with a forecast of planting 12,000
seedlings of native Atlantic Forest
species. Approximately 55% of the
reforestation has been completed.
• Aiuaba Ecological Station, Ceará: work
is continuing on the reforestation of 61.6
hectares of disturbed land, with more
than 56,000 seedlings.
• In 2020, in a partnership with
IBAMA and CODEVASF, some
15,000 fry and juveniles of streaked
prochilod, a species native to the
São Francisco River, were released in
Campinhos Lake, in the municipality
of Amparo do São Francisco,
Sergipe, Northeastern Brazil. This
repopulation initiative is being
conducted during the close season
in the São Francisco River Basin.
Eletrobras
Eletronorte
• Ducke Reserve (AM) – Set within the
Adolpho Ducke Protected Area, the
10,072-hectare (ha) Ducke Reserve
is used for research by the INPA
and other local and international
institutions.
• Samuel Ecological Station — A
72,000 ha protected area created
to protect biodiversity and species
that are representative of natural
ecosystems in the Jamari River Basin.
The Company supports efforts to
prevent illegal logging in the area.
• Tucuruí Protected Area Mosaic:
Eletronorte is a member of the mosaic’s
management committee, supplies
funding to implement protected areas,
and provides support in surveillance,
revegetation, environmental education
and management activities.
• Tucuruí Protected Area - This
protected area is supported by funding
from offsets and environmental
programs developed by Eletronorte
in the area of influence of the Tucuruí
Dam. Wildlife Preservation Zones (ZPVS)
– Wildlife release areas ltura 3 and 4 are
protected areas owned by Eletronorte
that are used for preservation of
terrestrial and aquatic biodiversity and
for scientific research.
• Forest Germplasm Program — Created
in 1984, Eletronorte operates a Forest
Germplasm Bank at the Tucuruí
Dam site, where flora species from
the Lower Tocantins River area are
cultivated and monitored, and seeds are
collected to produce seedlings for use
in revegetation and rehabilitation of
disturbed lands. In 2020 the germplasm
bank donated a total of 535,571 seeds,
enough to reforest 80 ha of disturbed
land, and 16,562 seedlings, equivalent
to 10 ha of reforested land.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Eletrobras
Furnas
In 2020, a project was undertaken to
rehabilitate the União Biological Reserve
(REBIO) along the Anta - Simplício -
Rocha 138 kV Transmission Line in Rio
de Janeiro, where a germplasm bank has
been established. A total area of 0,35
km² has been reforested with native
Atlantic Forest species.
142
• Cecremef Grove - Located in Vila
Residencial de Mambucaba, in the
municipality of Paraty, Rio de Janeiro,
the 16,244 m² grove was opened
to the public in 2010 following the
rehabilitation of a protected area along
the Mambucaba river, where 2,100
seedlings of native Atlantic Forest tree
species were planted.
• Serra da Bocaina National Park (PNSB)
Disturbed Land Rehabilitation Program
(PRAD) – Launched in 2020, this
program will rehabilitate 62 hectares
of disturbed land within the Serra da
Bocaina National Park, located in the
municipalities of São José do Barreiro
– SP (55 hectares) and Paraty – RJ (7
hectares).
Eletrobras
Eletronuclear
• Porã Trail - Created in 2003, the
Porã Trail stretches 2.5 km along the
BR-101 (Rio-Santos) Highway, in
the municipality of Angra dos Reis
(RJ), in a 440-hectare protected area
managed by Eletronuclear within the
Atlantic Forest biome. The area has
been designated as a natural heritage
site used for environmental education,
recreation and research.
• Restinga de Mambucaba Park - A
6,400 m² park located in Vila Residencial
de Mambucaba, in the municipality
of Paraty, Rio de Janeiro. A restinga
rehabilitation project was completed
in 2014; some 30,000 seedlings of
native restinga species were planted in
the process. The Park is being used for
environmental education, recreation
and research.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 143
Itaipu
• Biological refuges for research
and reproduction activities. In 2020
there were 359 captive-bred animals
of 63 species living in the refuges
(20 mammal, 36 bird, 6 reptile and
1 amphibian species). Another 41
animals of 9 species were born on the
refuges.
• Protected areas - Rehabilitation and
environmental preservation of the
company’s protected areas, with 1,051
ha of forests maintained and 65,507
seedlings planted (28.81ha).
• Management of biodiversity corridors
- Itaipu supplied 30,000 seedlings to
be planted at the Ivinhema State Park,
replacing seedlings planted as part of the
Trinational Biodiversity Corridor project
that were destroyed in a forest fire.
• Ichthyofauna – To monitor fish
populations in the Piracema Canal,
Itaipu has used DNA fingerprinting
to collect samples and develop
databases. The company plans to use
this technology in the future for non-
invasive monitoring. Itaipu has also
purchased tools to monitor migratory
fish, which will provide new insight into
the ecology of fish resources in this
area. The company is also collecting
data in the reservoir and in the Ilha
Grande National Park to inform the
preservation of areas used as spawning
grounds by sensitive species, such as
the river tiger (Salminus brasiliensis) and
piracanjuba (Brycon orbignyanus).
Galleries within the dam: Itaipu Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 144
GRI Content
Index
The Tucuruí Dam. Eletronorte Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI CONTENT INDEX
GRI 101: Foundation 2016
GRI 102: General Disclosures 2016
Organizational profile
145
For the GRI Content Index Service, GRI Services reviewed that the GRI content index
is clearly presented and the references for Disclosures 102-40 to 102-49 align with
the appropriate sections in the body of the report. The service was applied to the
Portuguese version of the report.
General disclosures
Disclosure
Page/URL
Omission
Sustainable Development Goals
102-1 Name of the organization
102-2 Activities, brands, products, and services
23
23
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organization
102-8 Information on employees and other
workers
102-9 Supply chain
SCN Q 4 BL B - And-2 sl-203 Asa Norte, Brasilia – DF,
Brazil
24
24
24, 100
88, 89
129, 131
121, 123
102-10 Significant changes to the organization
and its supply chain
87, 95, 123
102-11 Precautionary principle or approach
Used by subsidiaries, but not directly by the holding
company.
102-12 External initiatives
102-13 Membership of associations
71
69
None
None
None
None
None
None
None
None
None
None
None
None
None
8, 10
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Strategy
Disclosure
Page/URL
Omission
Sustainable Development Goals
102-14 Statement from senior decision-maker
4
102-15 Key impacts, risks, and opportunities
61, 63
Ethics and integrity
102-16 Values, principles, standards, and norms
of behavior
36, 55
102-17 Mechanisms for advice and concerns
about ethics
58
Governance
102-18 Governance structure
102-19 Delegating authority
29
32
102-20 Executive-level responsibility for
economic, environmental, and social topics
The organization has appointed an executive-level
position with responsibility for economic, environmental
and social topics, reporting directly to the highest
governance body
102-21 Consulting stakeholders on economic,
environmental, and social topics
102-22 Composition of the highest governance
body and its committees
16
30
102-23 Chair of the highest governance body
102-24 Nominating and selecting the highest
governance body
31
None
None
None
None
None
None
None
None
None
Not applicable,
as the chair
of the highest
governance body
is not an executive
officer
None
146
16
16
16
5, 16
16
5, 16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
102-25 Conflicts of interests
102-26 Role of highest governance body in
setting purpose, values, and strategy
102-27 Collective knowledge of highest
governance body
102-28 Evaluating the highest governance
body's performance
60
73
32
29
102-29 Identifying and managing economic,
environmental, and social impacts
102-30 Effectiveness of risk management
processes
61, 63
61
102-31 Review of economic, environmental, and
social topics
63, 74
102-32 Highest governance body’s role in
sustainability reporting
102-33 Communicating critical concerns
102-34 Nature and total number
of critical concerns
102-35 Remuneration policies
102-36 Process for determining remuneration
12
57
59, 74
34
34
None
None
None
None
None
None
None
None
None
None
None
None
102-37 Stakeholders’ involvement in
remuneration
The remuneration of the Board of Directors and
Audit Board is set by SEST and approved in a General
Stockholders’ Meeting, in accordance with applicable
regulatory requirements on Board remuneration (Law
no. 9.292, July 12, 1996). Remuneration amounts
are disclosed in aggregate in annual Management
Reports, in section 13.2 of the Reference Form filed
with the Brazilian Securities Commission (CVM), and in
the Business Management Report to the Office of the
Federal Comptroller General (CGU), which is submitted
to the Federal Audit Court (TCU).
147
16
16
16
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 102-38 Annual total compensation ratio
3.30
102-39 Percentage increase in annual total
compensation ratio
0.62
1. The remuneration calculation includes permanent
salaries, annual bonuses and position bonuses.
2. The average total annual remuneration calculation
includes employees who received at least seven months
(more than 50% of the year) of annual remuneration in
2020, as a way to minimize the effects from exceptions
on the interpretation of this disclosure.
3. The percentage increase and the compensation
ratio were calculated by comparing the employee with
the highest annual remuneration in 2020, other than
employees in statutory positions (officers and CEOs), to
that same employee’s remuneration in 2019.
4. Disclosures 102-38 and 102-39 are for holding
company employees only.
Stakeholder engagement
102-40 List of stakeholder groups
14
102-41 Collective bargaining agreements
All employees are covered by collective bargaining
agreements.
102-42 Identifying and selecting stakeholders
14
102-43 Approach to stakeholder engagement
131, 138
102-44 Key topics and concerns raised
14, 138, 151
None
None
None
None
None
None
None
148
8
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 149
Reporting practices
102-45 Entities included in the consolidated
financial statements
All companies: Amazonas GT; Cepel; Chesf; CGT
Eletrosul; Eletronorte; Eletronuclear; Furnas; Itaipu;
holding company; Eletropar
102-46 Defining report content and topic
Boundaries
102-47 List of material topics
16, 18
16
102-48 Restatements of information
Restatements of information and assumptions in the
previous report are flagged throughout the report by a
reference to this disclosure.
None
None
None
None
102-49 Changes in reporting
Due to the COVID-19 pandemic, three new material
topics were added to the previous year’s topics: health
and safety, supplier relations, and community relations.
None
102-50 Reporting period
1/1/2020 to 12/31/2020
None
102-51 Date of most recent report
The most recent report was published in 2020, for fiscal
year 2019 (ended 12/31/2019)
None
102-52 Reporting cycle
Annual
102-53 Contact point for questions regarding
the report
4,184
102-54 Claims of reporting in accordance with
the GRI Standards
This report has been prepared in accordance with the
GRI Standards—Core option.
102-55 GRI content index
102-56 External assurance
184
193
None
None
None
None
None
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 103: Management Approach 2016
Disclosures
Description
Topics
GRI 103-1
Explanation of the material topic
and its Boundary
Material topics
Water
Anti-corruption
Embedding social and environmental issues in decision-making
Human rights assessment
Cybersecurity
Local communities
Business and financial performance
Rights of indigenous and traditional peoples
Diversity and equal opportunity
Emissions
Energy
GRI 103-2
The management approach and
its components
Risk and crisis management
Corporate governance
Non-discrimination
Research and development + innovation
Procurement practices
Safety practices
Forced or compulsory labor
Child labor
Digital transformation
Energy transition
Training and education
150
Page
55, 86, 97
166
51, 53, 54, 55
49
153
105
158
86
162
148
169
100, 103
61, 63, 72
22
154
106
122
143
103
156
109
118
139
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 103-3
Evaluation of the management
approach
Water
Anti-corruption
Embedding social and environmental issues in decision-making
Human rights assessment
Cybersecurity
Local communities
Business and financial performance
Rights of indigenous and traditional peoples
Diversity and equal opportunity
Emissions
Energy
Risk and crisis management
Corporate governance
Non-discrimination
Research and development + innovation
Procurement practices
Safety practices
Forced or compulsory labor
Child labor
Digital transformation
Energy transition
Training and education
151
166
51, 53, 54, 55
49
153
105
158
86
162
148
169
100, 103
61, 63, 72
22
154
106
122
143
103
156
109
113
139
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE ECONOMIC DISCLOSURES
GRI 201: Economic performance 2016
Disclosure
Page/URL
Omission
Sustainable Development Goals
201-1 Direct economic value generated and
distributed
86, 94, - For detailed information, read our Financial
Statements here.
201-2 Financial implications and other risks and
opportunities due to climate change
64
GRI 204: Procurement practices 2016
204-1 Proportion of spending on local suppliers 124
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to
corruption
31, 49, 51.52, 58
205-2 Communication and training about anti-
corruption policies and procedures
51, 55, 56
205-3 Confirmed incidents of corruption and
actions taken
No confirmed cases of corruption were registered in
2020.
GRI 207: Tax 2019
207-1 Approach to tax
207-2 Tax governance, control and risk
management
207-3 Stakeholder engagement and
management of concerns related to tax
207-4 Country-by-country reporting
95
95
95
95
None
None
None
None
None
None
None
None
None
None
152
8, 9
13
8
16
16
16
1, 10, 17
1, 10, 17
1, 10, 17
1, 10, 17
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
GRI 303: Water and Effluents 2018
Environmental disclosures
Disclosure
Page/URL
Omission
Sustainable Development Goals
153
303-1 Interactions with water as a shared
resource
303-2 Management of water discharge-related
impacts
166
170
303-3 Water withdrawal*
166, 170, 171
303-4 Water discharge*
303-5 Water consumption*
GRI 304: Biodiversity 2016
304-2 Significant impacts of activities,
products, and services on biodiversity
304-3 Habitats protected or restored
304-4 IUCN Red List species and national
conservation list species with habitats in areas
affected by operations
170
170, 172
178, 180
178, 181
177, 180
* The reported data is exclusive of information for Eletropar and Cepel.
None
None
None
None
None
None
None
None
6, 12
6
6, 8, 12
6
6
6, 14, 15
6, 14, 15
6, 14, 15
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions
174 Eletrobras Emissions Inventory
305-2 Energy indirect (Scope 2) GHG emissions
174 Eletrobras Emissions Inventory
305-3 Other indirect (Scope 3) GHG emissions
174 Eletrobras Emissions Inventory
305-4 GHG emissions intensity
175 Eletrobras Emissions Inventory
305-5 Reduction of GHG emissions (SASB)
176 Eletrobras Emissions Inventory
305-6 Emissions of ozone-depleting substances
(SDG)
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX),
and other significant air emissions
177 Eletrobras Emissions Inventory
175 Eletrobras Emissions Inventory
None
None
None
None
None
None
None
GRI 306: Effluents and waste 2016
306-2 Waste by type and disposal method
The holding company complies with applicable
legislation concerning disposal methods for waste
materials generated at its facilities.
None
154
3, 12, 13, 14, 15
3, 12, 13, 14, 15
3, 12, 13, 14, 15
13, 14, 15
13, 14, 15
3, 12
3, 12, 14, 15
3, 6, 12
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 401: Employment 2016
Social disclosures
Disclosure
Page/URL
Omission
Sustainable Development Goals
401-1 New employee hires and employee
turnover
129, 131, 132, 133, 137, 139
None
5, 8, 10
155
401-2 Benefits provided to full-time employees
that are not provided to temporary or part-time
employees
The company provides employees, either on a voluntary
basis or under collective bargaining agreements, the
following benefits:
Transportation tickets or shuttle service; burial
insurance; maternal leave; health and dental insurance;
group life insurance; variable remuneration; meal
allowance; food allowance; retirement plans; education
assistance; education allowance; daycare allowance;
vacation bonus; length of service bonus; gym discounts;
pharmacy allowance; leave for employees who have
suffered domestic violence; caregiver leave; leave upon
the death of stepparents; extended maternal leave;
extended paternal leave; foreign language courses;
reimbursement for glasses frames/lenses; grants for
hearing aids.
None
3, 5, 8
401-3 Parental leave
135
None
5, 8
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 403: Occupational health and safety 2018
403-1 Occupational health and safety
management system
142, 144
403-2 Hazard identification, risk assessment,
and incident investigation
140
403-3 Occupational health services
141, 142
403-4 Worker participation, consultation, and
communication on occupational health and
safety
142
403-5 Worker training on occupational health
and safety
141, 142
403-6 Promotion of worker health
Workers’ access to medical and healthcare services:
Self-managed health and dental insurance for
employees and dependents. Funding method: Employee
copayment of expenses, but without monthly premiums
payable by beneficiaries. Employees can be reimbursed
for expenses at non-network healthcare providers.
Ambulance service is also available 24/7. Health
promotion services and programs offered to workers
to address major non-work-related health risks: A
calendar of health promotion, wellness and prevention
campaigns, including Group-wide initiatives through
the Energy & Health Program (Appendix - Energia e
Saúde.pdf): White January; Healthy Summer/Carnival;
coronavirus prevention protocols; World Health Day;
World No Tobacco Day; nutrition and exercise; online
mindfulness program; Golden August; Yellow September;
Pink October; Blue November. Flu campaign in 2020.
403-7 Prevention and mitigation of
occupational health and safety impacts directly
linked by business relationships
403-8 Workers covered by an occupational
health and safety management system
138
138
None
None
None
None
None
None
None
None
156
8
3, 8
3, 8
8, 16
8
3
8
8
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 403-9 Work-related injuries*
142
403-10 Work-related ill health*
142
GRI 404: Training and education 2016
404-1 Average hours of training per year per
employee
138
404-2 Programs for upgrading employee skills
and transition assistance programs
137, 142
404-3 Percentage of employees receiving
regular performance and career development
reviews
137
GRI 405: Diversity and equal opportunity 2016
405-1 Diversity of governance bodies and
employees
130, 145, 146
405-2 Ratio of basic salary and remuneration of
women to men
149
* The reported data is exclusive of information for Eletropar, Cepel and Itaipu.
Information
about third-party
workers has not
been included as,
due to the size
of the company
and its supply
chain, the third-
party database
is currently
being adjusted in
order to disclose
accurate data
in the following
report
None
None
None
None
None
None
157
3, 8, 16
3, 8, 16
4, 5, 8, 10
8
5, 8, 10
5, 8
5, 8, 10
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective
actions taken
No incidents were reported at Eletrobras Group
companies
None
GRI 407: Freedom of association and collective bargaining 2016
407-1 Operations and suppliers in which the
right to freedom of association and collective
bargaining may be at risk
GRI 408: Child labor (2016)
408-1 Operations and suppliers at significant
risk for incidents of child labor
150, 153
GRI 409: Forced or compulsory labor 2016
409-1 Operations and suppliers at significant
risk for incidents of forced or compulsory labor
150, 153
GRI 410: Security practices 2016
410-1 Security personnel trained in human
rights policies or procedures
151
None
None
None
None
GRI 411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of
indigenous peoples
From January 1 to December 31, 2020, no violations
involving rights of indigenous peoples were registered
via the whistleblowing channels of Eletrobras Group
companies.
None
158
5, 8
8
8, 16
8
16
2
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
GRI 412: Human Rights Assessment 2016
412-2 Employee training on human rights
policies or procedures
412-3 Significant investment agreements and
contracts that include human rights clauses or
that underwent human rights screening
GRI 413: Local communities 2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
151
153
162
413-2 Operations with significant actual or
potential negative impacts on local communities
128, 158, 165
None
None
None
None
GRI 415: Public Policy 2016
415-1 Political contributions
In compliance with Brazilian legislation, the Eletrobras
Group does not make contributions to or otherwise
support political parties, campaigns or candidates,
nor are our employees permitted to do so on behalf of
Eletrobras. This requirement is stipulated in our Code
of Ethical Conduct & Integrity and the Eletrobras Group
Anti-Corruption Policy.
None
159
1, 2
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
GRI 418: Customer privacy 2016
418-1 Substantiated complaints regarding
breaches of customer privacy and losses of
customer data
There were no substantiated complaints regarding
breaches of customer privacy in the year.
None
Organizational profile
EU1 Installed capacity, broken down by primary
energy source and by regulatory regime
95, 96
EU2 Net energy output broken down by primary
energy source and by regulatory regime
96, 112
EU4 Length of above and underground
transmission and distribution lines by regulatory
regime
Includes all transmission lines that were in operation
at year-end (directly owned and SPE-owned), including
transmission lines entitled to RAP or otherwise and
ancillary lines (power lines connecting to power plants
and power lines serving free consumers or connected
to Other Transmission Infrastructure (DIT) by < 230kV
systems) 23, 79, 80
Availability and reliability
EU6 Management approach to ensure short and
long-term electricity availability and reliability
Includes all directly-owned (corporate) backbone
transmission lines entitled to RAP that were in operation
throughout the reporting period, including sectioned
segments. Not including ancillary power lines. 80
Research & Development
EU8 Research and development activity
and expenditure aimed at providing reliable
electricity and promoting sustainable
development
105
Availability and reliability
EU10 Planned capacity against projected
electricity demand over the long term, broken
down by energy source and regulatory regime
101
160
16
7
7, 14
7
7, 9, 17
7
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
System Efficiency
EU11 Average generation efficiency of thermal
plants by energy source and by regulatory
regime
EU12 Transmission and distribution losses as a
percentage of total energy
78
101
Employment
EU14 Programs and processes to ensure the
availability of a skilled workforce
31, 129
EU16 Policies and requirements regarding
health and safety of employees and employees
of contractors and subcontractors
140
Local communities
EU20 Approach to managing the impacts of
displacement
EU21 Contingency planning measures, disaster/
emergency management plan and training
programs, and recovery/restoration plans
EU22 Number of people physically or
economically displaced and compensation,
broken down by type of project
Access
EU23 Programs, including those in partnership
with government, to improve or maintain access
to electricity and customer support services.
EU30 Average plant availability factor by energy
source and by regulatory regime
156
162
86
92
99
161
7, 8, 12, 13, 14
7, 8, 12, 13, 14
4, 8
8
1, 2, 11
1, 11
1,2
1, 7
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SASB
Disclosure
Disclosures from other frameworks – SASB, TCU
GRI equivalent
IF-EU-320a1: Total recordable injury rate (TRIR), fatality rate, and
near miss frequency rate (NMFR)
GRI 403-9
IF-EU-110a1: Gross global Scope 1 emissions, percentage covered
under emissions-limiting regulations, and percentage covered under
emissions-reporting regulations
GRI 305-1
IF-EU-110a2: Greenhouse gas (GHG) emissions associated with
power deliveries
GRI 305-2
IF-EU-110a3: Description of long-term and short-term strategy or
plan to manage Scope 1 emissions, emission-reduction targets, and
an analysis of performance against those targets
GRI 305-4
GRI 305-5
IF-EU-150a1: Amount of coal combustion residuals (CCR),
percentage recycled
GRI 305-6
G4-EU11
IF-EU-120a1: Air emissions of the following pollutants: NOx
(excluding N2O), SOx, particulate matter (PM), Pb, and Hg; percentage
of each in or near areas of dense population
GRI 305-7
IF-EU-104a1: Total water withdrawn and total water consumed,
percentage of each in regions with High or Extremely High Baseline
Water Stress
GRI 303-3
GRI 303-4
IF-EU-140a3: Discussion of water management risks and description
of strategies and practices to mitigate those risks
GRI 301-1
IF-EU- 550a1: Number of incidents of non-compliance with
standards or regulations on physical and cyber security
GRI 103-2
162
Page
142
174
17
175, 176
100, 177
175
166, 170, 171
67
106
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE TCU
Disclosure
Overview of the organization
GRI equivalent
GRI 102-2, GRI 102-5
GRI 102-7, GRI 102-8
GRI 102-14, GRI 102-15
GRI 102-16
163
Page
22, 23, 85, 86, 126, 128, 4, 59, 60, 62, 35,54
Risks
GRI 102-17
58
Governance
Financial Information
Results and performance
GRI 102-18, GRI 102-20
GRI 102-22, GRI 102-23
GRI 102-25, GRI 102-26
GRI 102-30, GRI 102-35
GRI 102-36, GRI 102-37
GRI 102-38, GRI 102-39
GRI 201-1, GRI 201-2
GRI 201-4, GRI 203-1
GRI 204-1, GRI 205-1
GRI 205-3, GRI 207-2
GRI 405-2
GRI 413-1
GRI 413-2
EU1, EU8
EU20
EU21
EU22
29, 34, 60, 61, 73
31, 49, 51, 52, 53, 58, 64, 86, 94, 95, 124, 149
86, 95, 96, 106, 124, 125, 128, 156, 158, 159,
162, 163, 166
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE ASSURANCE REPORT
Independent auditor’s limited
assurance report on information
related to sustainability included
in the Annual Report for 2020
To the Board of Directors
and Stockholders
Centrais Elétricas Brasileiras S.A. -
Eletrobras
Rio de Janeiro - RJ
164
ISAE 3000 mainly consists of making
inquiries of management and other
professionals of the entity involved in
the preparation of the information, as
well as applying analytical procedures
to obtain evidence that enables the
issue of a limited assurance conclusion
on the information taken as a whole.
A limited assurance engagement also
requires the performance of addition-
al 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.
The procedures selected are based
on our understanding of the aspects
related to the compilation and pre-
sentation of the information related to
sustainability included in the Annual
Report for 2020, other circumstances
of the engagement and our analysis of
the areas in which significant mis-
statements might exist. The following
procedures were adopted:
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 information related
to sustainability included in the Annual
Report for 2020 of Eletrobras for the
year ended December 31, 2020.
Responsibilities of the Company’s
management
The Company’s management is responsi-
ble for the preparation and fair presenta-
tion of the information related to sus-
tainability included in the Annual Report
for 2020, in accordance with the Global
Reporting Initiative (GRI-Standards), and
for the internal controls it has determined
as necessary to enable the preparation of
information free from material misstate-
ment, whether due to fraud or error.
Independent auditor's responsibility
Our responsibility is to express a con-
clusion on the information included
in the Annual Report for 2020 based
on our limited assurance engagement
carried out in accordance with the
Technical Communication CTO 01, “Is-
suance of an Assurance Report related
to Sustainability and Social Responsi-
bility”, issued by the Federal Accounting
Council (CFC), based on the Brazilian
standard NBC TO 3000, “Assurance
Engagements Other than Audit and Re-
view”, also issued by the CFC, which is
equivalent to the international standard
ISAE 3000, “Assurance engagements
other than audits or reviews of histori-
cal financial information”, issued by the
International Auditing and Assurance
Standards Board (IAASB). Those stan-
dards require that we comply with eth-
ical and independence requirements,
and other responsibilities, including
in relation to the application of the
Brazilian Standard on Quality Control
(NBC PA 01) and, therefore, the main-
tenance of a comprehensive quality
control system, including documented
policies and procedures regarding the
compliance with the applicable ethical
requirements, professional standards
and legal and regulatory requirements.
Moreover, the aforementioned stan-
dards require that the work be planned
and performed to obtain limited as-
surance that the sustainability infor-
mation included in the Annual Report
for 2020, taken as a whole, is free from
material misstatement.
A limited assurance engagement
conducted in accordance with the
Brazilian standard NBC TO 3000 and
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 165
(a) planning the work, taking into
consideration the relevance and the
volume of quantitative and qualitative
information and the operating and
internal control systems that were used
to prepare the information related to
sustainability included in the Company’s
Annual Report for 2020.
(b) understanding the calculation meth-
odology and the procedures adopted for
the compilation of indicators through
interviews with the managers respon-
sible for the preparation of the infor-
mation of Eletrobras - Centrais Elétricas
Brasileiras S.A., as well as the managers
responsible for the preparation of the
information of the following subsidiar-
ies, whose information was consolidated
in the Annual Report of Centrais Elétri-
cas Brasileiras S.A. and its subsidiaries: of
Companhia Hidro Elétrica do São Fran-
cisco - Chesf; of Furnas Centrais Elétri-
cas S.A. - Furnas; of Eletrobras Termonu-
clear S.A. - Eletronuclear; of Companhia
de Geração e Transmissão de Energia
Elétrica do Sul do Brasil - Eletrobras CGT
Eletrosul; of Centrais Elétricas do Norte
do Brasil S.A. – Eletronorte; of Amazonas
Geração e Transmissão de Energia S.A. –
Amazonas GT and of Itaipu Binacional.
(c) Applying analytical procedures to
quantitative information and mak-
ing inquiries regarding the qualitative
information and its correlation with the
indicators disclosed in the information
related to sustainability included in the
Annual Report for 2020.
(d) comparing the financial indicators
with the financial statements and/or
accounting records.
The limited assurance engagement also
included tests to assess compliance with
the guidelines and criteria of the Glob-
al Reporting Initiative (GRI-Standards)
applied in the preparation of the infor-
mation related to sustainability included
in the Annual Report for 2020.
We believe that the evidence we have
obtained is sufficient and appropriate to
provide a basis for our limited assurance
conclusion.
Scope and limitations
not able to obtain reasonable assur-
ance 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. If we had performed an en-
gagement with the objective of issuing
an opinion, we might have identified
other matters and possible misstate-
ments in the information related to
sustainability included in the Annual
Report for 2020. Therefore, we do not
express an opinion on this information.
Non-financial data are subject to more
inherent limitations than financial data,
due to the nature and diversity of the
methods used to determine, calculate
and estimate these data. Qualitative
interpretations of the relevance, ma-
teriality, and accuracy of the data are
subject to individual assumptions and
judgments. Furthermore, we did not
carry out any work on the data reported
for prior years, nor future projections
and goals.
The procedures applied in a limited
assurance engagement are substan-
tially less detailed than those applied in
a reasonable assurance engagement,
the objective of which is the issuance of
an opinion on the information related
to sustainability included in the Annual
Report for 2020. Consequently, we are
The preparation and presentation
of the sustainability indicators were
performed pursuant to GRI-Standards
criteria and, therefore, do not aim to
provide assurance with regard to the
compliance with social, economic,
environmental, or engineering laws and
regulations. However, the aforemen-
tioned standards establish the presen-
tation and disclosure of possible cases
of non-compliance with such regu-
lations 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,
described herein, no matter has come
to our attention that causes us to
believe that the information related to
sustainability included in the Annual
Report for 2020 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, May 27, 2021
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5
Eliane Kihara
Accountant CRC 1SP212496/O-5
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 166
Appendixes
The Itumbiara Dam. Furnas Archives
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE APPENDIX I – 2030 AGENDA DISCLOSURES
The following table describes our initiatives in support of the SDGs
and their results. For further details, visit our Commitment to the 2030
Agenda website
167
Ensure access to affordable, reliable, sustainable and
modern energy for all
SDG Target: 7.1 ‑ By 2030, ensure universal access to affordable, reliable and modern energy services.
Value Expectation
Related SDGs
Key results in 2020
Access to electricity for all, with a reduced risk for social and
environmental impacts
1, 2, 3, 8, 9, 10, 13
Contribution to sustainable development
1, 2, 3, 4, 5, 6, 8, 9, 10, 11,
12, 13, 14, 15, 16, 17
Fairly priced (sustainable) contracts
9, 11
Eletrobras will be responsible for executing the “More Light for the
Amazon” program, which will bring renewable electricity to rural
families and their community centers. In 2020 a total of 44,232
new connections were made, for a total of 3.5 million connections
as part of the “Light for All Program” since 2004.
For the third consecutive year, we expanded the availability of our
nuclear power plants and the efficiency of our natural gas power
plants, and continued to reduce transmission losses.
The Eletrobras Group showed strong resilience in keeping our
generation and transmission assets fully operational across Brazil
throughout the COVID-19 pandemic. At peak, 75% of Eletrobras’s
workforce was assigned to work from home, a considerable
technological challenge that required our operational, governance
and management structures to be fully functional. Meanwhile,
unified health and safety protocols were established for operations
and administrative activities, and a robust recovery plan was
developed.
Eletrobras Group companies developed generation projects that
added 277 MW in new installed capacity, and brought 26 new
large-scale transmission projects online, adding 150 km of new
transmission lines to the National Grid.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SDG Target: 7.2 - By 2030, increase substantially the share of renewable energy in the global energy mix
Value Expectation
Related SDGs
Key results in 2020
168
Access to electricity for all, with a reduced risk for social and
environmental impacts
9, 13
Partnership in managing government programs
1, 2, 3, 8, 9, 12, 13, 17
Research, Development & Innovation
8, 9
We invested R$ 3,122 million in generation, transmission,
infrastructure and environmental projects. Eletrobras has
contributed to making Brazil’s energy mix one of the cleanest in the
world. We have a market share of 29% in the generation segment,
at 50,648MW of installed capacity, and 43,54% in the transmission
segment, with 70,091,89 km of transmission lines. In 2020 we
produced a total output of 195,178 GWh (5.5% more than in 2019),
of which 97% was clean energy.
PROINFA projects generated 9.1 million MWh in the year, for a total
of approximately 106.8 million MWh of clean, renewable electricity
since 2006.
We invested more than R$ 472 million in Technology and
Innovation (48% more than in 2019), including more than 100
research projects in areas such as: operation, supervisory control
and protection of electric power systems, and alternative energy
sources.
As part of our new business development efforts, the Eletrobras
Group completed feasibility studies for approximately 17.17 GW in
new installed generation capacity, inventory studies representing
3.77 GW, and basic design for approximately 0.27 GW.
SDG Target: 7.3 ‑ By 2030, double the global rate of improvement in energy efficiency
Value Expectation
Related SDGs
Key results in 2020
Energy savings
Quality of life
9, 13
Partnership in managing government programs
The PROCEL Program, of which Eletrobras is responsible for
execution, generated energy savings of 22 million MWh, avoiding
emissions of 1.36 million tCO2 equivalent. On the education front,
the PROCEL Educa program launched a 10-episode animated series,
called “Collective Awareness”, in partnership with Canal Futura.
The series addresses energy efficiency in different areas and new
technologies and sustainable ways to generate electricity. On
the public lighting front, the PROCEL Reluz program will retrofit
approximately 30,000 streetlights with energy-efficient LED bulbs
in municipalities across Brazil.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
Promote sustained, inclusive and sustainable
economic growth, full and productive employment
and decent work for all
169
SDG Target: 8.1 Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% of gross domestic product growth per
annum in the least developed countries
Value Expectation
Related SDGs
Key results in 2020
Returns on Invested Capital
9, 16
Dividends
Contribution to sustainable development
9, 16
In August 2020, Eletrobras announced its Strategic Plan 2020-
2035, with Sustainability as a guiding principle that permeates our
strategy, our business processes and the way we do business. Our
purpose is to put all our energy into the sustainable development of
society.
We reject decisions which could undermine our profitability,
financial discipline, corporate social and environmental
sustainability, ethics and compliance standards, operational safety,
or the health and safety of our direct or third-party employees.
SDG Target: 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and
encourage the formalization and growth of micro‑, small‑ and medium‑sized enterprises, including through access to financial services
Value Expectation
Related SDGs
Key results in 2020
Procurement predictability
9, 12, 16
A more sustainable supply chain
5, 10, 12, 16
Professional development and training
4, 5, 10, 12, 13, 16
We had a supplier base of approximately 8,626 companies in
2020, and placed orders worth a total of R$ 5,587 million—45%
from local suppliers. We have set a target of conducting ESG due
diligence on at least 60% of all new suppliers in 2021, and 100% in
2022.
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170
To support greater procurement efficiency and predictability, in
2020 we developed and published an Annual Procurement Plan
(PAA) as in previous years, with a forecast accuracy of 72%. This
demonstrates the successful creation of a culture of procurement
planning within the organization, and the effectiveness of our
policies to raise awareness and engage employees around meeting
suppliers’ expectations for predictability, one of the principles of
our Value Creation Model.
We initiated a pilot project in partnership with SEBRAE to establish
a Small Business Development Program.
SDG Target: 8.4 Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from
environmental degradation, in accordance with the Ten-Year Framework of Programs on Sustainable Consumption and Production, with developed countries taking the
lead
Value Expectation
Related SDGs
Key results in 2020
Partnership in managing government programs
1, 2, 3, 7, 9, 12, 13, 17
Reduce utility water consumption by 20% in our administrative
operations from a 2019 baseline.
SDG Target: 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities,
and equal pay for work of equal value
Value Expectation
Related SDGs
Key results in 2020
Jobs and Income
1, 2, 9
Procurement predictability
9, 12, 16
Professional development and training
1, 2, 4
Promoting Diversity
1, 5, 10
Eletrobras Group companies, including CEPEL and Itaipu
Binacional, support a total of 13,803 direct jobs across Brazil.
Eletrobras strives to promote diversity across the governance and
management structure. Our Audit Board currently has two female
members: Patricia Valente Stierli and Thaís Márcia Matano. The
Board of Directors has one female member: Lucia Casasanta, who
chairs the Strategy, Governance & Sustainability Committee.
The Executive Board has two female members: Elvira Presta and
Camila Gualda. The ratio of women in management positions (36%)
exceeds the ratio of women in the broader workforce at Group
companies (19.01%).
For the fifth consecutive year, we linked executive directors’
variable compensation to a set of EESG targets, including targets
on climate change, energy efficiency, health and safety, research
and development, supplier due diligence, and gender equity.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE SDG Target: 8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training
171
Related SDGs
Key results in 2020
Value Expectation
Jobs and Income
Private Social Investment
3; 4; 1; 7; 9; 13; 15
Sponsorship of culture, sports and events
3; 4; 9; 13
The Teixeira de Freitas Luthier School (Neojiba Program)
provides professional luthier training to young apprentices
in the municipality of Teixeira de Freitas, Bahia, Northeastern
Brazil, teaching children, teenagers and other youth how to
repair and maintain musical instruments. The “Nutrindo o Saber”
project provides civic and professional training in bakery and
confectionary to 135 students aged 17 and over. Our Internship
and Young Apprentice programs engage around 950 participants
in supervised corporate activities that give them experience and
improve their employability.
SDG Target: 8.7 Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking and secure the prohibition and
elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms
Value Expectation
Respect for human rights
Related SDGs
9, 10; 16
Supplier development
4; 5; 10; 12; 13; 16
Sustainable supply chain
5; 10; 12; 16
Key results in 2020
For the fifth consecutive year, we linked executive directors’
variable compensation to a set of EESG targets, including targets
on climate change, energy efficiency, health and safety, research
and development, supplier due diligence, and gender equity. We
have set a target of conducting ESG due diligence on at least 60%
of all new suppliers in 2021, and 100% in 2022, delivering on our
commitment to sustainable management and respecting human
rights.
Eletrobras Group companies provided 340 hours of training
on human rights policies and procedures, attended by 3,262
employees (24,93%).
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
SDG Target: 8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and
those in precarious employment
172
Related SDGs
Key results in 2020
Value Expectation
Quality of Life
Health and safety
3
3
Supplier development
4, 5, 10, 12, 13, 16
Sustainable supply chain
5, 10, 12, 16
For the fifth consecutive year, we linked executive directors’
variable compensation to a set of EESG targets, including targets
on climate change, energy efficiency, health and safety, research
and development, supplier due diligence, and gender equity.
We considerably reduced our injury rates in 2020 compared to
2019, largely due to the COVID-19 pandemic and the resulting
reduction in on-site activities. Our lost-time injury frequency rate
fell from 2.35 to 1.14 and the severity rate from 254 to 14 for direct
employees. We recorded no fatalities from occupational injuries
involving direct employees.
During the pandemic in 2020, we administered 76,820 COVID-19
tests to direct and third-party employees, safeguarding people and
our operations at Group companies.
Through the “Saving Lives” campaign in partnership with BNDES,
we donated R$ 24 million toward purchasing supplies and PPE for
front-line health professionals at 109 National Healthcare System
hospitals in 102 municipalities across 24 states and the Federal
District.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
173
SDG Target: 9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development
and human well‑being, with a focus on affordable and equitable access for all
Value Expectation
Conservation of Biodiversity
Improvements to national infrastructure
Related SDGs
13, 15
7, 11, 13
Access to electricity for all, with a reduced risk for social and
environmental impacts
7, 9, 13
Community relocation
Participation in Structuring Projects
Operational safety and reliability (Energy Security)
1, 3, 11
7
7, 11
Contribution to sustainable development
1, 2, 3, 4, 5, 6, 7, 8, 10, 11,
12, 13, 14, 15, 16, 17
Affordable electricity
Fairly priced (sustainable) contracts
Returns on Invested Capital
Reliable revenues
7
8, 16
7, 13
Key results in 2020
We have prioritized SDG 15 in our long-term strategic plan, and
established a set of targets related to biodiversity conservation:
inclusion of IUCN Red List species and national conservation
list species in our biodiversity programs; higher investment in
biodiversity management projects; and increasing biomass carbon
stocks.
Eletrobras has contributed to making Brazil’s energy mix one
of the cleanest in the world. We have a market share of 29% in
the generation segment, at 50,648MW of installed capacity,
and 43,54% in the transmission segment, with 70,091,89 km of
transmission lines. In 2020 we produced a total output of 195,183
GWh, of which 97% was clean energy.
In 2020, projects within the Alternative Source Incentive Program
(PROINFA) generated 9.1 million MWh, for a total of approximately
106.8 million MWh of clean, renewable electricity generated from
February 2006 to year-end 2020.
We invested R$ 3,122 million in generation, transmission,
infrastructure and environmental projects. Eletrobras has
contributed to making Brazil’s energy mix one of the cleanest in the
world. We have a market share of 29% in the generation segment,
at 50,648MW of installed capacity, and 43,54% in the transmission
segment, with 70,091.89 km of transmission lines. In 2020 we
produced a total output of 195,183 GWh (5.5% more than in 2019),
of which 97% was clean energy.
Eletrobras Furnas certified two projects to trade in renewable
energy certificates. The Fortim wind farm cluster (123 MW) in
Ceará, and the Itumbiara Dam (2,082 MW) in Minas Gerais and the
Serra da Mesa Dam in Goiás, were the first to become eligible to
issue Renewable Energy Certificates (I-REC) under the International
REC Standard, issued in Brazil by Instituto Totum. The plants were
approved by the I-REC Standard Foundation, an international
organization that provides a robust environmental attribute
tracking standard for use around the world.
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174
For the third consecutive year, we expanded the availability of our
nuclear power plants and the efficiency of our natural gas power
plants, and continued to reduce transmission losses.
As part of our new business development efforts, the Eletrobras
Group completed feasibility studies for approximately 17.17 GW in
new installed generation capacity, inventory studies representing
3.77 GW, and basic design for approximately 0.27 GW.
Eletrobras Group companies developed generation projects that
added 277 MW in new installed capacity, and brought 26 new
large-scale transmission projects online, adding 150 km of new
transmission lines to the National Grid.
SDG Target: 9.2 Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in
line with national circumstances, and double its share in least developed countries
Value Expectation
Conservation of Biodiversity
Jobs and Income
Procurement Predictability
Respect for human rights
Related SDGs
13, 15
8, 10
8, 12, 16
8, 9, 10, 16
Key results in 2020
Eletrobras Group companies, including CEPEL and Itaipu
Binacional, support a total of 13,803 direct jobs across Brazil.
We had a supplier base of approximately 8,575 companies with
active contracts in 2020, and placed orders worth a total of R$
5,587 million—45.09% from local suppliers. We have set a target of
conducting ESG due diligence on at least 60% of all new suppliers
in 2021, and 100% in 2022.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 175
SDG Target: 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource‑use efficiency and greater adoption of clean
and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
Value Expectation
Related SDGs
Key results in 2020
Improvements to national infrastructure
7, 11, 13
Private Social Investment
3, 4, 1, 7, 8, 13, 15
Partnership in Managing Government Programs
1, 2, 3, 7, 8, 12, 13, 17
Access to electricity for all, with a reduced risk for social and
environmental impacts
7, 8, 13
Energy Savings
Reduce utility water consumption by 20% in our administrative
operations from a 2019 baseline.
The PROCEL Program, of which Eletrobras is responsible for
execution, generated energy savings of 22,02 million MWh,
avoiding emissions of 1.36 million tCO2 equivalent. On the
education front, the PROCEL Educa program launched a 10-episode
animated series, called “Collective Awareness”, in partnership with
Canal Futura. The series addresses energy efficiency in different
areas and new technologies and sustainable ways to generate
electricity. On the public lighting front, the PROCEL Reluz program
will retrofit approximately 30,000 streetlights with energy-efficient
LED bulbs in municipalities across Brazil.
SDG Target: 9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including,
by 2030, encouraging innovation and substantially increasing the number of research and development workers per one million people and public and private research
and development spending
Value Expectation
Related SDGs
Key results in 2020
Research, Development & Innovation
7, 8
Private Social Investment
3, 4, 1, 7, 8, 13, 15
Conservation of Biodiversity
13, 15
We have prioritized SDG 15 in our long-term strategic plan, and
established a set of targets related to biodiversity conservation:
inclusion of IUCN Red List species and national conservation
list species in our biodiversity programs; higher investment in
biodiversity management projects; and increasing biomass carbon
stocks.
We launched the Center for the Fourth Industrial Revolution (C4IR)
Brazil as a founding member. C4IR is the first center of its kind
in Brazil and will be focused on artificial intelligence, machine
learning, the Internet of Things, urban transformation and data
policy.
We invested more than R$ 472 million in Research, Technology
and Innovation (48% more than in 2019), including more than 100
research projects in areas such as: operation, supervisory control
and protection of electric power systems, and alternative energy
sources.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
176
SDG Target: 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
Value Expectation
Related SDGs
Key results in 2020
Operational safety and reliability
(Energy Security)
Access to electricity for all, with a reduced risk for social and
environmental impacts
Contribution to sustainable development
7, 9
7, 9
We invested a total of R$ 3,122 million in 2020, including R$ 1,802
million in generation projects, R$ 1,051 million in transmission
projects, and R$ 269 million in infrastructure and environmental
projects.
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
12, 14, 15, 16, 17
For the third consecutive year, we expanded the availability of our
nuclear power plants and the efficiency of our natural gas power
plants, and continued to reduce transmission losses.
A Stronger Brand and Reputation
12, 16
Eletrobras Furnas ran a public-utility campaign on forest fire
prevention. The campaign was aired in 42 municipalities in the
states of Goiás, Tocantins and the Federal District, alerting viewers
to the risks and potential impacts from forest fires, including major
power outages.
With support from Eletrobras Chesf, a task force led by the Bahia
State Civil Defense Department developed a Contingency Plan for
the municipality of Paulo Afonso (BA), addressing several risk and
disaster scenarios.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE 177
SDG Target: 13.2 Integrate climate change measures into national policies, strategies and planning
Value Expectation
Related SDGs
Key results in 2020
Access to electricity for all, with a reduced risk for social and
environmental impacts
7, 9
Partnership in Managing Government Programs
1, 2, 3, 7, 8, 9, 12, 17
Energy savings
7, 9
Eletrobras has implemented the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD), a recognized
authority on climate-related financial disclosures.
Risk appetite: we reject decisions which could undermine
our profitability, financial discipline, corporate social and
environmental sustainability, ethics and compliance standards,
operational safety, or the health and safety of our direct or
outsourced employees.
Eletrobras has been named to the Brazilian stock exchange’s
(B3) 2021 Corporate Sustainability Index (ISE B3) and Carbon
Efficient Index (ICO2 B3). We received an A- rating for our 2020
CDP questionnaire in the Climate Change and Water Security
dimensions. The A- score denotes leadership in industry best
practices in these areas.
SDG Target: 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early
warning
Value Expectation
Private Social Investment
Related SDGs
4
Sponsorship of culture, sports and events
3, 4, 8, 9
Partnership in Managing Government Programs
1, 2, 3, 7, 8, 9, 12, 13, 17
Supplier development
4, 16
Key results in 2020
Private Social Investment Policy: R$ 886.1 million in initiatives
supporting communities we interact with.
We held a virtual edition of our National Supplier Meeting, with
more than 300 suppliers attending webinars on subjects such as
human rights, health and safety, integrity and sustainability.
We reduced our scope 1 and 2 greenhouse gas emissions by 20.7%
from 2019, and undertook a commitment to offset 100% of the
holding company’s GHG emissions in 2021.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Promote peaceful and inclusive societies for
sustainable development, provide access to justice
for all and build effective, accountable and inclusive
institutions at all levels
178
SDG Target: 16.1 Significantly reduce all forms of violence and related death rates everywhere
Value Expectation
Respect for human rights
Related SDGs
8
Supplier development
4, 5, 8, 10, 12, 13
Key results in 2020
We joined Childhood Brazil’s Na Mão Certa initiative, which works to
combat sexual exploitation of children in Brazil.
We held a virtual edition of our National Supplier Meeting, with
more than 300 suppliers attending webinars on subjects such as
human rights, health and safety, integrity and sustainability.
SDG Target: 16.5 Substantially reduce corruption and bribery in all their forms
Value Expectation
Related SDGs
Key results in 2020
Integrity (ethical, lawful and transparent conduct)
4, 5, 8, 10, 12, 13
Professional development and training
4, 8
Supplier development
4, 5, 8, 10, 12, 13
Sustainable supply chain
4, 5, 8, 10, 12, 13
99.57% of our critical suppliers underwent assessments for
corruption risk, and 98.15% of our commercial partners (SPEs)
were informed about Eletrobras’s anti-corruption policies and
procedures. These initiatives are conducted within our Integrity
Program.
We stated our risk appetite: we reject decisions which could
undermine our profitability, financial discipline, corporate social
and environmental sustainability, ethics and compliance standards,
operational safety, or the health and safety of our direct or
outsourced employees.
We took steps to implement the Brazilian General Data Protection
Act (LGPD) in our operations.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE SDG Target: 16.6 Develop effective, accountable and transparent institutions at all levels
Value Expectation
Related SDGs
Key results in 2020
179
Partnership in Managing Government Programs
7, 9, 12
Supplier development
4, 5, 8, 10, 12, 13
A Stronger Brand and Reputation
A more sustainable supply chain
Procurement predictability
Returns on Invested Capital
Private Social Investment
A Stronger Brand and Reputation
4, 5, 8, 10, 12, 13
8, 9, 12
8, 9, 13
Ethical, transparent and equitable relationships
Our shareholder base grew by approximately 174%, ending 2020
with a total of 139,800 shareholders.
Eletrobras is among the top 100 companies with the strongest
reputations in Brazil. We ranked 80th in the 2020 Corporate
Reputation Monitor (MERCO) list, climbing 14 positions from 2019.
Eletrobras Group performed well in customer assessments, with
88.83% overall satisfaction with our services, higher than our
target satisfaction rating.
We received a number of accolades from the market for
sustainable practices. We were named to the B3 Corporate
Sustainability Index (ISE B3) for our 13th year. In a sustainability
assessment in the year by S&P Global, which developed the Dow
Jones Sustainability Index, we received the maximum score for
7 out of the 27 assessment criteria in the year. Our A- score for
Water Security and Climate Change From the Carbon Disclosure
Project (CDP) denotes leadership in these areas. In an assessment
by Vigeo Eiris, we ranked 1st out of a total of 53 companies in
the Electric and Gas Utilities segment in emerging markets, and
40th out of the total universe of 4,893 green bond issuers. Vigeo
Eiris also assessed Eletrobras Group companies’ commitment to
SDGs 7 and 13 within the 2030 Agenda. We received a Bronze
Class distinction in the Sustainability Yearbook 2021, an annual
publication listing the world’s most sustainable companies. The
yearbook is published by Standard&Poor’s, the developers of the
Dow Jones Sustainability Indices.
We perfected our Annual Report to increase transparency and
alignment with international sustainability reporting frameworks
such as SASB and TCFD, in addition to the GRI Standards, the IIRC
framework and 2030 Agenda. To improve the findability of our
sustainability information, we launched EESG Journey, providing
an integrated overview of our Economic, Environmental, Social
and Governance performance. We implemented a structure of four
pillars—Prosperity, Planet, People and Governance—broken down
into 12 key drivers, based on a framework launched by the World
Economic Forum in September 2020.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
180
SDG Target: 16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels
Value Expectation
Related SDGs
Key results in 2020
Contribution to sustainable development
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
12, 13, 14, 15 17
Participatory dialog
11
In August 2020, Eletrobras announced its Strategic Plan 2020-
2035, with Sustainability as a guiding principle that permeates our
strategy, our business processes and the way we do business. Our
purpose is to put all our energy into the sustainable development of
society.
Eletrobras has developed projects in 12 Kayapó communities along
the Middle Xingu River, in southern Pará, benefiting around 1,500
people.
SDG Target: 16.10 Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements
Value Expectation
Related SDGs
Key results in 2020
Ethical, transparent and equitable relationships
Partnership in managing government programs
1, 2, 3, 7, 8, 9, 12, 13, 17
We launched EESG Journey, providing an integrated overview
of our Economic, Environmental, Social and Governance (EESG)
performance. We implemented a structure of four pillars—
Prosperity, Planet, People and Governance—broken down into 12
key drivers, based on a framework launched by the World Economic
Forum in September 2020.
Our Ombudsman’s Office received 3,955 reports on concerns
in 2020, of which 96% were resolved in the year. A total of 644
requests for information were received. Average response time was
6.55 days, and only 9 cases were still pending at 12/31/2020.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE
APPENDIX II – TARGETS UNDER PDNG 2021-2025
Indicator
Relative Generation
Availability (DISPGR)
Unit
Rate
Historical
2018
2019
2020
2020
Targets
2021
Status in 2020
Targets for 2021 / Ongoing initiatives
0,995
1,060
1,064
1,000
1,000
Target met
Preventive action to meet the generation availability
requirements established by the regulator.
181
Transmission Line
Operational Availability
(DISPOLT)
%
99,90%
99,95%
99,94%*
99,82%
99,88%
Target met
Global Indicator (Generation
+ Trading)
Rate
1.04
1.01
0.99
1.00
1.00
Target partially met***.
Employee Satisfaction**
Rate
74.18
74.20
77.96
73.13
74.70
Target met
Lost-Time Injury Frequency
Rate
No. of injuries
per million
hours of
exposure to
risk
NA
NA
1.14
2.48 Under revision
A comparison could not be
made against the target for
2020 as it included third-
party employees, whereas
reported results for 2020 were
for direct employees only.
Preventive maintenance to improve efficiency in the
transmission business. The targets for transmission
performance take account of the aging of our transmission
assets, many of which exceed 30 years in service, which directly
affects the frequency and duration of scheduled maintenance
outages.
A project is underway to make electricity trading management
more effective by improving transparency, integration and
workflows across Group companies.
Sustainability 4.0 Program and Human Capital Enhancement
Project.
Occupational Health & Safety Program, with initiatives to
prevent occupational illnesses and injuries at Group companies,
including employees and contractors.
* To unify our reported figures, in 2020 we reported Operational Availability rather than Overall Availability. The figures for 2018
and 2019 have accordingly been adjusted to refer to Operational Availability.
** The most recent previous survey was in 2018, and its results are therefore reported for 2018 and 2019.
*** Where figures in 2020 are within 5% of the target for the year, the target is deemed to have been partially met.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Indicator
GHG emissions from
Eletrobras-owned thermal
power plants per unit of net
electricity generated (tCO2e/
MWh)
GHG emissions from fossil
fuel combustion by vehicle
fleets
Transformer Operational
Availability (DISPOTR)
Due diligence on suppliers
exposed to fraud and
corruption risks
Employees trained
on Integrity Program
(Compliance) policies and
procedures
Injury severity rate (direct
employees)
Number of fatalities (direct
employees)
%
%
%
Unit
%
Historical
2018
2019
2020
2020
Targets
2021
Status in 2020
Targets for 2021 / Ongoing initiatives
0.67
0.62
0.60
1.00
NA
Target not met
Sustainability 4.0 Program and Energy Transition Project
tCO2e
12,141
11,374
8,835
11,340
NA
Target met
Sustainability 4.0 Program and Energy Transition Project
182
99.66%
99.77%
99.68%
99.34%
99.69%
Target met
94.0%
94.63%
99,57%
100%
100%
Target partially met*.
96.0%
88.40%
97.05%
100%
98%
Online training facilitated
by Compliance teams was
attended by 97.1% of
employees Group-wide.
A comparison could not be
made against the target for
2020 as it used different
calculation methods.
Number
NA
NA
13.78
213 Under revision
Number
NA
NA
0
0
0
Target met
Management positions held
by women
Reduce utility-supplied
electricity consumption in
administrative activities
(MWh)
Reduction of fossil fuel
combustion by land-vehicle
fleets (GJ)
%
%
%
21.1%
22.26%
36%
21.0%
21.0%
Target met
3.4%
6.61%
49.95%
0.2%
0.2%
1.1%
6.4%
22.35
0.2%
0.2%
Target met, largely due to the
COVID-19 pandemic and the
resulting reduction in on-site
activities.
Target met, largely due to the
Covid-19 pandemic and the
resulting reduction in on-site
activities.
*Where figures in 2020 are within 5% of the target for the year, the target is deemed to have been partially met.
Preventive maintenance to improve efficiency in the
transmission business.
Continued development of the Eletrobras Group Integrity
Program
Continued development of the Eletrobras Group Integrity
Program
Occupational Health & Safety Program, with initiatives to
prevent occupational illnesses and injuries at Group companies,
including contractors.
Occupational Health & Safety Program, with initiatives to
prevent occupational illnesses and injuries at Group companies,
including contractors.
Continue the Eletrobras Gender Equity Program. Maintain our
commitment to gender equity, respect for human rights and UN
Women’s Empowerment Principles.
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project.
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project.
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE -0.4%
13%
20%
0.3%
0.3%
Target met, largely due to the
COVID-19 pandemic and the
resulting reduction in on-site
activities.
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project.
183
Reduction of utility
water consumption in
administrative activities
Tier 1 suppliers encouraged
to adopt practices that
promote diversity
Share of clean energy
sources (solar, wind, hydro,
nuclear) in our energy mix
%
%
%
83.40%
100%
97.64%
80%
NA
Target met
95.2%
95.7%
97%
95%
>96%
Target met
Expand the sources
included in Scope 3 GHG
emissions
Scope
5
5
5
Add 2 news
sources to
the GHG
emissions
inventory by
2023
Add 2 news
sources to
the GHG
emissions
inventory by
2023
In 2020 we maintained
the same sources of
greenhouse gas emissions
within Scope 3.
Total NOx Emissions
(t/year)
4,645
8769
7,411
24,821
24,821
Target met
Total SOx Emissions
(t/year)
11,344
10,817
9,788
27,127
27,127
Target met
Total PM Emissions
(t/year)
908
425
342
4,229
4,229
Target met
Fugitive SF6 emissions
(tCO2e)
32,576
34,941
45,320
157,371
157,371
Target met
Energy Savings through
PROCEL Initiatives
Billion kWh/
year
NA
21.6
22.0
27.7
23.8
Target not met
Hours of Training / Number
of Employees
Hours
NA
ND
44.08
50
NA
Target not met
Continued contribution to the expansion of Brazil’s clean
and/or renewable installed capacity. Adjustments to the G&T
portfolio development process (PDNG20-24)
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project; Energy Transition Project
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project; Energy Transition Project
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project; Energy Transition Project
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project; Energy Transition Project
Sustainability Program 4.0; Climate Change Mitigation and
Environmental Protection Project; Energy Transition Project
Eletrobras has invested in initiatives within the PROCEL
program to reduce waste and improve energy efficiency. By
improving the energy efficiency of products and services, the
program helps to postpone the need for capacity expansion
and the resulting environmental impacts. This indicator
therefore is a measure of our support for SDG 7, Target 7.3,
and is the primary indicator used to measure the performance
of Brazil’s National Energy Conservation Program (PROCEL).
Sustainability Program 4.0; Human Capital Enhancement
Project; Corporate University (UNISE) restructuring
GHG Emissions
tCO2e
NA
1,004
414.48
NA
0
New indicator (created
under PDNG 21-25)
Sustainability 4.0 Program / Energy Efficiency Project /
PROCEL energy efficiency initiatives
Employees trained on
human rights
%
NA
26,63%
24.93%
NA
50%
New indicator (created
under PDNG 21-25).
Sustainability Program 4.0; stakeholder engagement in the
value chain to raise awareness about human rights
ELETROBRAS I ANNUAL REPORT 2020PEOPLEPROSPERITYPLANETGRIABOUT THIS REPORTMESSAGEEESG JOURNEYAPPENDIXESGOVERNANCE Credits
Eletrobras – Centrais Elétricas
Brasileiras S.A. provides several
channels for communication with
stakeholders.
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’s Office
www.eletrobras.com/ouvidoria
ouvidoria@eletrobras.com
Whistleblowing Hotline
www.eletrobras.com/canaldenuncia/
Investor Relations (RI)
Website: www.eletrobras.com.br/elb/ri
Contact IR: invest@eletrobras.com
IR Ombudsman: ombudsman-ri@
eletrobras.com
If you have any questions about
technical terms used in this report,
please refer to the Eletrobras Power
Sector Glossary at:
Eletrobras>Agência Eletrobras de
Notícias>Comunicação Institucional
For communications related to this
report, please write to: GRI 102-53
sustentabilidade@eletrobras.com
This Annual Report has been prepared
as a collaborative effort by teams across
the Eletrobras Group.
We wish to thank all collaborators for
their participation and dedication.
General Coordination
Eletrobras Chief Management &
Sustainability Officer
Editorial Group
Eletrobras Communications & Investor
Relations
Sustainability Disclosures & Report
Assurance Group
Eletrobras Group Sustainability
Committee
Data Management & Collection
IGS System
Writing & Editing, GRI Consulting
and Design
grupo report - rpt.sustentabilidade
Translation into English
América Latina Traduções
- Ivan van Rheenen