Integrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Table of contents Introduction Message from the CEO Highlights of the Year About the Report Material Topics About Copel Companhia Paranaense de Energia Corporate Structure Acknowledgments Strategy and Outlook Capital Performance Industry Context Copel Vision 2030 Business Model Sustainability Management Voluntary Commitments Corporate Governance Governance Structure Development of Members of Governance Entities Ethics and Integrity Risk Management Natural Capital Social and Relationship Capital Human Capital Intellectual Capital Infrastructure Capital Financial Capital Summary GRI Content Index SASB Summary Additional Disclosures Assurance Report Regulatory Environment Credits 02 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes 1 INTRODUCTION 03 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Message from the CEO Message from the CEO GRI 2-22 One of our focal points in 2022 was to re- subsidiary invested BRL 1.8 billion - of the two years ahead of schedule, is an example flect on what we want Copel to achieve over BRL 2. billion total invested by the Compa- 8 of our ongoing effort to enhance our opera- the next few years. This work involved the ny - in actions such as the Paraná Trifásico tional efficiency and our discipline in capital entire leadership, including the Board of Di- program (Three-Phase program), which has allocation. rectors, the full board, and the leaders of the currently delivered 10,500 km of a renewed wholly-owned subsidiaries, and culminated and upgraded network in the rural area of At the end of the year, we launched the di- in the 2030 Vision - a plan that defines our the state and is expected to reach 25,000 vestment plan of our gas-powered thermo- corporate ambition and underpins the Com- km by 2025. This adds up to more quality electric power plant, Araucária. Concurrent- pany's sustainable development grounded and security in the supply of energy for agri- ly, Compagas (a company in which Copel on three major pillars: decarbonization of cultural production, an important economic has a 51% stake) has renewed for another the energy matrix, integration with business driver in the state. The Smart Electrical Grid 30 years the concession for the supply of scale and discipline in capital allocation. The (SEG), the largest smart-grid investment and piped gas in the state of Paraná. This help results disclosed by Copel in 2022 are start- the use of smart meters in Brazil, will repre- us to continue the process of selling our ing to show how we intend to fulfill these sent an unprecedented leap in the automa- entire stake in this asset. commitments. tion of the state's power grid. Copel Mercado Livre (Copel Free Market), in Despite the challenges of the year - less de- Our vision of the future includes our aware- turn, continues as one of the leading traders mand for electricity due to the slower pace ness of our role in renewable energy. A in the industry and is well positioned to take of economic activity and still suffering the priority in the 2030 Vision is to reach 100% advantage of the opportunities that lie in the effects of the COVID-19 pandemic - Copel renewable energy generation, which is opening and expansion of this format that closed the year with an adjusted EBITDA linked to an uptake in wind and solar sourc- enables large energy consumers. including non-recurring items of BRL 5.5 es. By acquiring brownfields and construct- billion, up 10% as compared to the result for ing greenfields, we have added a little more In addition to the target of generating 100% 2021. than 300 MW of wind turbine capacity in renewable energy, we have launched inter- the past two years and have become the nal commitments to reduce our socio-envi- In distribution, the investments aim to seventh largest wind power generator in ronmental footprint and boost eco-efficient expand the service with excellence to meet Brazil. The start up of the Jandaíra Wind management within our structure in areas 04 the demands of clients and consumers. The Farm in Rio Grande do Norte state in 2022, such as water, waste, and air, among others, IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Message from the CEO while maintaining a work environment that Concurrently with its strategic goals, Copel cares about the wellbeing and physical and is getting ready to make its biggest struc- mental health of our employees. tural change since its creation 68 years ago. As announced in December 2022 by Copel's social development plans also its controlling shareholder, the State Gov- include investing in the empowerment of ernment of Paraná, Copel is to become a women. We launched the Female Leader- dispersed-ownership company, without a ship Development Program focused on train- controlling shareholder, which will enable it ing and valuing our women managers. to make swifter decisions and continue com- petitive in a highly-competitive environment. Copel was the first company in the elec- We see this change, as a way to add more tricity sector to sign the Global Compact value to the Company, the employees, the and was also one of the first to adopt the shareholders, as well as other stakeholders Sustainable Development Goals (SDGs) as a that rely on Copel services. guideline for our actions. We increased our actions and our commitment to the Global This is an ongoing process that will require Compact in 2022. We joined the Net Zero multiple steps. We continue committed to Ambition Movement, which aims to chal- transparency and to expanding our dialogue lenge and support signatory companies in with internal teams to maintain our flow of setting robust, science-based targets. communication and information. We will continue to focus on establishing best prac- In regard to open innovation, we have start- tices in our industry. ed structuring a Corporate Venture Capital (CVC) fund, which will earmark BRL 150 Daniel Pimentel Slaviero million to finance solutions in areas such CEO of Copel as renewable energy and smart grids. We have also kicked off the second phase of the Copel Volt Program, responsible for bringing Copel closer to startups that have solutions 05 for the energy market. IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Highlights of the Year Highlights of the Year 2030 Vision Copel's plan for the future includes an integrated outlook that can transform the Company into one of the largest in the country Revision of the energy matrix: 100% from renewable sources Divestiture in thermal and natural gas power plants Expansion of wind and solar power generation ADDED VALUE BRL 15.2 billion generated in 2022, broken down as follows: BRL 15.2 billion 06 Government Staff Outsourced workers Shareholders Retained Wind energy Start up of the Jandaíra Wind Farm two years ahead of schedule Acquisition of wind farms Aventura and Santa Rosa and Novo Mundo Investments • BRL 1.8 billion in investments in the distribution network in 2022 alone • Smart Electrical Grid - Latin America's largest smart grid program • PR Trifásico - BRL 2.8 billion (in five years) to upgrade the rural electrical grid Innovation Creation of Corporate Venture Capital (CVC), which will allocate BRL 150 million to finance new energy solutions Second edition of Copel Volt At B3, it integrates: Corporate Sustainability Index (ISE), for 17 years Carbon Efficient Index (ICO2 B3) Great Place to Work Index (GPTWI) Became signatory of: Net Zero Ambition Movement 100% Transparency Movement Up to 30% of the bonuses of ex- ecutives and other employees are tied to ESG targets Beginning of the process to transform Copel into a corporation, to become a dispersed-ownership company (with no controlling shareholder) Free access to electricity 359,000 families do not pay for their electricity (Energia Solidária Program) Best Electricity Provider in Brazil Valor 1000, Valor Econômico newspaper IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | About the Report About the Report GRI 2-2, 2-3 The 2022 Integrated Report of Companhia wholly-owned subsidiaries and its Controlled Paranaense de Energia - Copel discloses Companies. The non-financial data encom- the Company's performance for the period passes Copel (Holding Company) and its between January 1 and December 31, 2022. wholly-owned subsidiaries - Copel Geração e This annual document offers a series of Transmissão S.A., Copel Distribuição S.A., Co- national and international transparency and pel Comercialização S.A. and Copel Serviços reporting guidelines that give a proper and S.A. -, specifying inclusions or exclusions, relevant coverage of the Company's infor- when applicable. Data from the timeline (from mation (see full list at next page). 2021 and 2020) may also contain data from Copel Telecomunicações S.A., a unit sold in The initial principle for defining content is 2019 and whose transition process to the the materiality process. In addition, the new controller was finalized in 2022. GRI 2-4 publication sets out Copel's management approach, business model, and performance The 2022 Integrated Report was evaluated in terms of human, intellectual, social and by the Full Board (Diretoria Reunida - Redir) relationship, natural, infrastructure, and and by the Sustainable Development Com- financial capitals according to the Integrated mittee (SDC or Comitê de Desenvolvimento Reporting Framework. Sustentável - CDS), and approved by the Board of Directors (BOD or Conselho de The financial data in the Financial State- Administração - CAD) prior to its publication. ments refers to Copel Holding Company, its GRI 2-14 07 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | About the Report Other Copel reports: Stakeholder Capitalism Metrics - World Economic Forum Management Report and Financial Statements Copel Materiality Report 20F Report Reference Form Social-Environmental Responsibility and Economic-Financial Report of Copel Geração e Transmissão Social-Environmental and Economic-Financial Responsibility Report of Premises of the report: • Technical Instruction CPC 09 – Integrated Report, approved by CVM Resolution 14; • Principles of the GRI Sustainability Reporting Standards and con- tent of the electricity sector supplement 2013. • Indicators specifically requested by the Brazilian Electricity Regulatory Agency Electrical Sector. (Aneel) in the Accounting Manual for the • Guidelines from the International Financial Reporting Standards (IFRS) considered in the information derived from the Financial Statements. • Integrated Reporting Framework, as per the Integrated Reporting Framework and the Sustainability Accounting Standards Board (SASB), both now part of the IFRS Foundation. • Progress report regarding the commitments undertaken with the United Nations (UN) Global Compact. • Law 13303 (Law for State-run Companies) of June 30, 2016, which establishes in article 8(IX), the annual disclosure of an integrated or sustainability report. • Principles for Responsible Executive Education (PRME), a global platform of the United Nations (UN) for voluntary engagement, which have influence on the performance of UniCopel, Copel's Copel Distribuição corporate education area. For questions or suggestions about the report: relato.integrado@copel.com 08 • Stakeholder Capitalism Metrics - World Economic Forum. • Indicators linked to the Corporate Sustainability Assessment -CSA. IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Material Topics GRI 3-1 The 2021-2022 Copel Materiality Process considered the Company's characteristics, the commitments undertaken, the legal obligations and the context of the Brazilian electricity sector, and was carried out in well-defined stages, starting with the review of Copel's material topics in the 2020 cycle. The material topics underpin not only the publication but are also used as support for Strategic Planning and for stakeholder en- gagement. The topics also consider Copel's relationship and its potential to contribute to the achievement of the Sustainable Development Goals (SDGs). This materiality proposal was submitted for review to the Company’s senior management and was ap- proved by the Full Board (Diretoria Reunida - Redir) and the Board of Directors (Conselho de Administração - CAD). GRI 2-14 Stages of the materiality process: 1 Analysis of Co- pel's material topics from the 2020 cycle 2 Survey of relevant topics for the sector based on sustainability performance assessments, as well as ESG¹ standards and guidelines 3 Materiality analysis by national and interna- tional peers 6 Identification of positive and nega- tive impacts of the Company’s oper- 5 Sensitive topics, according to a media 4 Analysis of Copel’s corporate documents (Strategic Planning, ations, based on intensity, probability study Risk Matrix, etc.) and frequency 7 Survey with stakeholders to priori- tize topics in each business segment. 8 Consolidation of results and grouping of topics by man- agement scale 9 Analysis of study results by the whol- ly-owned subsidiaries. 09 1- GRI Standards, SASB and ODS. 10 Approval from governance bodies: review by Full Board, review by Sustainable Devel- opment Committee, and approval from the Board of Directors IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Key: Financial Capital Infrastructure Capital Intellectual Capital Social and Relationship Capital Natural Capital Human Capital Material topics for Copel GRI 3-2 GRI Standards material topics Capitals See more GRI 2 - General contents GRI 201: Economic performance 2016 (201-2) GRI 205: Anti-corruption 2016 (205-1 to 205-3) GRI 206: Unfair Competition 2016 (206-1) GRI 415: Public policies 2016 (415-1) GRI 418: Customer privacy 2016 (418-1) GRI 301: Materials 2016 (301-1, 301-2) GRI 302: Energy 2016 (302-1 to 302-5) Pages 56-86 GRI 303: Water and effluents 2018 (303-1 to 303-5) Pages 88-104 GRI 304: Biodiversity 2016 (304-1 to 304-4) GRI 305: Emissions 2016 (305-1 to 305-7) Corporate governance, risk management and cybersecurity 7 8 9 11 13 Environmental management and actions against climate change 7 8 9 11 13 10 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Material topics for Copel GRI 3-2 GRI Standards material topics Capitals See more Environmental management and actions against climate change 7 8 9 11 13 GRI 306: Waste 2020 (306-1 to 306-5) GRI 308: Environmental assessment of suppliers 2016 (308-1, 308-2) Pages 88-104 GRI 304: Biodiversity 2016 (EU13) GRI 202: Market presence 2016 (202-1, 202-2) GRI 203: Indirect economic impacts 2016 (203-1, 203-2) GRI 204: Procurement practices 2016 (204-1) GRI 408: Child labor 2016 (408-1) GRI 409: Forced or compulsory labor 2016 (409-1) GRI 411: Rights of Indigenous people 2016 (411-1) GRI 413: Local communities 2016 (413-1, 413-2) GRI 414: Social assessment of suppliers 2016 (414-1, 414-2) GRI Energy sector supplement 2013 - Local communities (EU19, EU22) GRI Energy sector supplement 2013 - Contingency plans and disaster and emergency response (EU21) Social responsibility 4 7 8 9 11 11 Pages 105-126 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Material topics for Copel GRI 3-2 GRI Standards material topics Capitals See more Social responsibility 4 7 8 9 11 GRI Energy sector supplement 2013 - Consumer health and safety (EU25) Customer satisfaction 7 9 GRI Energy sector supplement 2013 - Organizational profile (EU2) GRI Energy sector supplement 2013 - Access (EU23, EU26, EU27) GRI Energy sector supplement 2013 - Provision of information (EU24) GRI 401: Employment 2016 (401-1 a 401-3) GRI 402: Work relations 2016 (402-1) GRI 403: Health and safety at work 2018 (403-1 to 403-10) GRI 404: Training and education 2016 (404-1 to 404-3) Pages 105-126 Pages 108-112 People management and health and safety at work 4 7 8 9 11 GRI 405: Diversity and equal opportunities 2016 (405-1, 405-2) Pages 127-145 GRI 406: Non-discrimination 2016 (406-1) GRI 407: Freedom of association and collective bargaining 2016 (407-1) GRI Energy sector supplement 2013 - Availability of skilled workforce (EU14) 12 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Material topics for Copel GRI 3-2 GRI Standards material topics Capitals See more People management and health and safety at work GRI Energy sector supplement 2013 - Percentage of employees eligible for retirement in the next 5 and 10 years (EU15) 4 7 8 9 11 GRI Energy sector supplement 2013 - Employment (EU16, EU18) GRI Energy sector supplement 2013 - Consumer units EU2 GRI Energy sector supplement 2013 - Availability and reliability EU6 GRI Energy sector supplement 2013 - Research and development EU8 GRI Energy sector supplement 2013 - System efficiency EU11, EU12 GRI Energy sector supplement 2013 - Access EU30 GRI Energy sector supplement 2013 - Organizational profile (EU2) GRI Energy sector supplement 2013 - Availability and reliability (EU6) GRI Energy sector supplement 2013 - Demand management (EU7) Transformation of energy sector 7 9 Operational efficiency 7 9 13 13 Pages 127-145 Pages 146-165 Pages 146-165 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics Material topics for Copel GRI 3-2 GRI Standards material topics Capitals See more GRI Energy sector supplement 2013 - Research and development (EU8) Planned capacity against projected electricity demand over the long term (EU10) GRI Energy sector supplement 2013 - System efficiency (EU11) Transmission and generation losses (EU12) GRI Energy sector supplement 2013 - Power supply disruptions (EU28) GRI Energy sector supplement 2013 - Average duration of disruptions (EU29) GRI Energy sector supplement 2013 - Average plant availability factor by energy source and regulatory regime (EU30) Pages 146-165 GRI 201: Economic performance 2016 (201-1-, 201-3, 201-4) Pages 169-173 Operational efficiency 7 9 13 Economic-financial performance 8 14 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Corporate Governance, Risk Management and Cybersecurity Corporate Governance, Risk Management and Cybersecurity GRI 3-3 Corporate governance Organized as a mixed-capital corporation, people, investments and innovation, and in- itoring, roles and responsibilities, proper controlled by the State of Paraná, and creased interest by minority shareholders. infrastructure, and to outline a common with shares traded on the B3, NYSE and Other advances were made in the revision methodology for the Company as well as Latibex, Copel requires a robust system of of the dividend policy and in the creation of set the risk appetite statement. governance and an efficient set of admin- a statutory guarantee for full application of istration mechanisms. the tariff reductions approved by the Brazil- It encompasses practices for the disclosure ian electricity regulator (Aneel). and control of events, monitoring the suitabil- In order to ensure that management per- ity and effectiveness of risk responses, the formance is always aligned with the best Other topics are related to corporate accuracy and completeness of disclosures, interests of the Company and its stake- governance, such as ethics and integrity the timely correction of shortfalls, and peri- holders, Copel uses as a benchmark the which defines the foundation for the proper odic communication to the Statutory Audit Code of Best Governance Practices for conduct of the employees, executives and Committee and the Board of Directors in Listed Companies of the Brazilian Corporate board members, handled by Copel's Integ- charge of overseeing and inspecting Copel’s Governance Institute (IBGC), the rules and rity Program and Code of Conduct. risk management.The risk management pro- regulations of the stock exchanges where it is listed and Federal Laws 6404/1976 and Risk management 13303/2016, in addition to being listed on cess is tested by an independent auditor in compliance with the Sarbanes-Oxley law. Governance Level 2 of B3. Risk management is directly related to The policy’s rules are applicable to corporate Copel's performance by pointing out areas, wholly-owned subsidiaries and subsid- Between 2021 and 2022, a series of devel- threats and opportunities and providing iaries, and are recommended for the jointly opments in its governance practices were information for decision making. The controlled companies, controlled companies implemented, including new committees Company’s Risk Management Policy sets and other equity interests of Copel. to advise the Board of Directors on top- out the integration of this management by ics such as sustainable development and defining strategies and performance mon- 15 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Corporate Governance, Risk Management and Cybersecurity Cybersecurity The subject of cybercrime and cybersecu- compiled in Copel's Cybersecurity Plan, rity is one of the top ten global risks over reviewed annually and discussed every quar- the next two to ten years according to the ter at the Statutory Audit Committee and in World Economic Forum's Risk Report 2023. the Fiscal and Administrative Boards. At Copel, it is classified at the highest level in relation to all corporate risk, a concern that grows in tandem with the increased digitization and automation of processes within the Company. Cybersecurity is included in Strategic Plan- ning and is deployed at several functional levels via the objectives and goals set for the Holding Company and all its whol- ly-owned subsidiaries. Copel adopts the National Institute of Standards and Technol- ogy - Cybersecurity Framework (NIST-CF) as a benchmark, conducts annual maturity measurements of its practices and monitors the corporate Cybersecurity Index (NIST). The governance is based on specific in- formation security policies and standards, management and performance indicators, internal controls, budgets and projects, 16 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Corporate Governance, Risk Management and Cybersecurity Highlights Level 2 of B3 Governance Integrates the ISE portfolio for the 17th time See more Corporate Governance TCFD Communication (on climate change) Sustainability Portal Investor Relations 17 20F Report Goals • Expand and disseminate best ESG prac- tices and reinforce risk management and internal and compliance controls. • Continually raise cybersecurity levels. Related Risks • Cybersecurity Breach • Failure in Ethics, Fraud and Corruption • ESG Practice Failure • Political Interference Governance • Sustainable Development Committee (Comitê de Desenvolvimento • Sustentável - CDS) Investment and Innovation Committee (Comitê de Investimento e Inovação - CII) • Statutory Audit Committee (Comitê de Auditoria Estatutário - CAE) • Minority Shareholders' Committee (Comitê de Minoritários - CDM) • Corporate Governance Policy • Annual Performance Assessment Policy • Policy for Engagement of Independent Auditing Services • Dividend Policy • • Integrated Corporate Risk Management Policy Integrity Policy • Referral Policy and Standards • Related Party Transaction Policy • Equity Stake Policy • Investor Relations Policy IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Topic material | Environmental Management and Actions Against Climate Change Environmental Management and Actions Against Climate Change GRI 3-3 Copel has a generation matrix runs on that The guidelines for this action lie in the Sus- Copel has a Carbon Neutral Plan geared 93.8% renewable energy and a target of tainability Policy, which is the cornerstone towards reducing direct emissions (scope 1) reaching 100% by 2030, with growth in gen- for other regulations, such as the Climate and offsetting residual emissions by 2030, eration from alternative renewable sources Change Policy, the Environmental Policy, and has included the topic as a goal in the - and those with less environmental impact the internal standards of Waste Manage- variable remuneration program for the - such as wind and solar power sources. ment and of Climate Change Management, entire company, among other commitments among others. The company and its partners to further environmental management. However, to carry out its operations, re- follow the license conditions for every type sources such as water, energy, and materi- of undertaking and the premises of the als are needed, and its production process- Eco-Efficiency Program for the best use of es release waste and effluents, changes natural resources. in the use and occupation of areas, and an impact on biodiversity. As such, the Compa- One of the duties of the Eco-efficiency ny conducts studies and adopts the mea- Commission, created to oversee the pro- sures needed to avoid, reduce and offset gram's progress, is to discuss the actions to the impacts it causes to the environment so curb water and energy consumption, reduce ti can become ever more sustainable. waste generation and GHG emissions, as well as evaluate related indicators, set Copel strives to achieve eco-efficiency, pre- targets, study the feasibility of implementing serve biodiversity and reduce greenhouse new technologies and develop actions with gas (GHG) emissions. In addition, it transfers the value chain. Another environmental man- its principles of good environmental man- agement group is the Climate Change Com- agement to customers and suppliers. mission, structured to propose actions aimed at minimizing emissions, adapting Copel to climate change, and assessing financial risk. 18 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Topic material | Environmental Management and Actions Against Climate Change Highlights Renewable installed capacity: 6,293 MW Renewable energy generation: GWh 26.588,2 By 2030 Target to decarbonize the energy matrix Integrates the indexes ICO2 and ISE B3 Goals • Broaden and disseminate best ESG practices • Reduce greenhouse gas emissions • Improve performance in sustainability assessments Related Risks • ESG Practice Failure • Climate Change Impacts • Dam Accidents Governance • • • Sustainable Development Committee (Comitê de Desenvolvimento Sustentável - CDS) Sustainability Policy Environmental Policy • Climate Change Policy Joined the movement Net Zero Ambition 19 See more Sustainability Portal IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Social Responsibility Social Responsibility GRI 3-3 Besides being the largest company in Copel manages mandatory social pro- Paraná, which in itself requires robust and grams within the context of the licensing structured social conduct by Copel, the of ventures and operations, and develops Company also provides an essential service other corporate actions within the scope of - that of electricity distribution, generating corporate sustainability, such as the EletriCi- regional development and improving the dadania program for Corporate Volunteering. population's wellbeing. The ongoing monitoring of the results of these Copel also implements and operates large initiatives leads to the implementation of electricity generation and transmission action strategies, the identification of oppor- assets in several Brazilian states that impact tunities, the proposal of improvements, and neighboring communities, which is why it extends communication to all stakeholders. pays special attention to the socioeconomic and cultural components of each region. The Sustainability Policy leverages the social performance and reflects the importance of dialogue and transparency when taking into consideration the demands and expectations of the many stakeholders. The Company has established other policies that define guide- lines for relevant topics such as human rights, criteria for private social investment, and the granting of sponsorships. Copel provides an essential service of electricity distribution and generates regional development as well as increasing the population's wellbeing. 20 Information board in Kaingang IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Social Responsibility Highlights 1,648 hours of volunteering Private Social Investment (Investimento Social Privado - ISP): BRL 26.4 million in 2022. 21 Goals • Broaden and disseminate best ESG practices Related Risks • ESG Practice Failure Governance • • Sustainable Development Committee (Comitê de Desenvolvimento Sustentável - CDS) Sustainability Policy • Human Rights Policy • Private Social Investment Policy • Donations and Voluntary Contributions Policy • Sponsorship Policy See more Sustainability Portal IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Customer Satisfaction Customer Satisfaction GRI 3-3 As an electricity distribution utility, con- The Customer Satisfaction Improvement sumer and customer satisfaction is directly Committee meets periodically to assess the related to its business performance and rep- results. Meetings are also held in areas ded- utation. The higher the customer satisfaction icated to the telephone service, face-to-face and the efficiency in the operational pro- services, and the Work Group for Survey cesses, the better the Company's reputation Results Analysis, among others. will be in the eyes of its many stakeholders. Copel Distribuição has an Ombudsman with Copel tracks customer perception of its ISO 9001 certification and was considered services via different research methods. An the second best in the country by the annual survey is conducted by Aneel and Abradee for residential customers. Rural customers are consulted every four years Brazilian Electricity Regulatory Agency (Aneel) in 2022. and public authority customers in the first In energy sales, customer satisfaction is and last year of the mayors’ term of office. directly linked to the renewal of contracts. and in 2022, an opinion poll showed that The Company also controls complaints (ECF 87.9% of the customers were satisfied or and ECD), analyzes recidivism with the very satisfied. As one of the largest energy ombudsman; monitors websites such as trading companies in the free market, Reclame Aqui (Complain Here), tracks internal Copel is working on digitizing systems and indicators and sets up work groups dedicated processes to boost service quality for to improving customer satisfaction. these customers. 22 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Customer Satisfaction Highlights Best Electricity Provider Valor 1000 Award ECD: 120.50 (hours) ECF: 6.36 (units) Goals • Be a benchmark in customer satisfaction Related Risks • Failure to Protect Personal Data • Cybersecurity Breach Governance • Quality Policy • Copel Ombudsman Policy • Privacy and Data Protection Policy • Donations and Voluntary Contributions Policy • Sponsorship Policy Copel Free Market 87.9% of customers were satisfied or very satisfied. 23 See more Sustainability Portal Copel Free Market Copel Distribuição IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Topic material | People Management and Health and Safety at Work People Management and Health and Safety at Work GRI 3-3 The care taken with people management and monitoring for issues related to occupational safety is checked on a continuous basis at health and safety. Copel and is a priority for the administration, which also plans to expand the efficiency and The Permanent Diversity Committee studies, productivity of its business. plans, and assists in the creation of actions aimed at upholding equal rights and a safe and Copel has a merit-based variable compensa- respectful corporate culture for its employees tion program for all employees with financial, and its outsourced workers. operational and sustainability targets, as well as a profit sharing program and a comprehen- In addition to human resources and occupa- sive benefits package. tional health and safety indicators, Copel uses other surveys and tools, such as the Great Professional development is supported by Place to Work (GPTW) assessment and the the corporate university, Unicopel, and areas individual performance assessment program dedicated to the subject at every subsidiary to Nossa Energia. The Company holds the MEG meet specific needs. HR Seal from the National Quality Foundation (FNQ), which evaluates the maturity of HR Occupational health and safety manage- management. ment starts with accident prevention, either through technical and awareness training Copel also made commitments in 2022 to or through corporate programs to identify advance diversity in leadership and reach zero and mitigate accident risk. In operational fatal accidents involving employees and out- units with a higher risk of accidents, Copel sourced workers, to support these processes offers OHSAS certification to ensure stricter as management priorities. 24 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Topic material | People Management and Health and Safety at Work Highlights 2030 Vision Diversity and safety goals for employees and outsourced workers Goals • Anchor the culture of safety, health and quality of life • Encourage people-focused management, engagement with teams and the culture of meritocracy • Be recognized as an excellent company to work for • Teach people the skills needed to face new challenges Women's Leadership Development Policy Establishment of a hybrid work model Related Risks • Health Crises (pandemics and epidemics) • Failure in People Management • Failure in Occupational Health and Safety Committee • ESG Practice Failure Governance • Sustainable Development Committee (Comitê de Desenvolvimento Sustentável - CDS) • Human Rights Policy • Corporate Education Policy • People Management Policy • Occupational Health and Safety Committee • Outsourcing Policy Integrates B3's IGPTW portfolio 25 See more Sustainability Portal IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Transformation of Energy Sector Transformation of Energy Sector GRI 3-3 The electric power market is undergoing a world through extreme weather events or Vision 2030, which lays the groundwork for rapid transformation with a set of chang- by changes in water and wind patterns and the Company's next decade, analyzes all es that have the potential to shake up the this is causing companies to make changes these scenarios and is helping Copel antic- industry. The scenario includes digitizing in their businesses and assets. ipate the new trends, protect its business, business and operational processes, de- and position itself in promising markets. centralizing power generation operations An array of emerging technologies, such as Investments in new renewable generation and measures to decarbonize the economy, flexible demand, electric mobility, distributed assets and in expanding and upgrading its particularly the energy sector. generation, energy storage and advanced transmission and distribution businesses are control devices, are bringing about new being stepped up and the Company has cre- Concern with climate change, adapting to options for the generation, transmission and ated new mechanisms to approach innovative environmental demands and the require- distribution of electricity and creating a huge businesses through Copel Venture. The plan ments of society are pointing to a decrease challenge for the modernization and adapta- to transform Copel into a dispersed-owner- in GHG emissions, and these issues are tion of the electricity infrastructure. ship corporation without state control should a priority in government decisions when also leverage its investment conditions and it comes to energy planning. International These are trends that influence the activities generate value. (see more on page 49). agreements and national goals are being and businesses in which Copel operates and used as the baseline to expand the energy may generate new business opportunities or Copel Mercado Livre, which is one of matrix in several countries and encourage forms of performance or may lead to a loss Brazil’s three top energy traders, invests in the use of certain cleaner sources to reduce in revenue if the Company does not achieve technology and efficiency to prepare for the the carbon footprint. The impact of climate its strategic goals. growth of this market in upcoming years. change is already being felt around the 26 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Transformation of Energy Sector Highlights Investments Power distribution: BRL 1.8 billion Transmission: BRL 472.7 million BRL 94.8 million in R&D applied BRL 150 million Copel Venture Fund to boost innovative businesses Goals • Find profitable opportunities in new business and services in the energy sector Evaluate strategic partnerships • Broaden and disseminate best ESG practices • • Apply technologies to optimize and transform business • Continually raise cybersecurity levels • Champion innovation to leverage results Technological Obsolescence Lack of Digital Transformation Related Risks • Cybersecurity Breach • • • Climate Change Impacts • Operational Failures ESG Practice Failure • Governance • • Sustainable Development Committee (Comitê de Desenvolvimento Sustentável - CDS) Investment and Innovation Committee (Comitê de Investimento e Inovação - CII) Sustainability Policy • • Investment Policy • Climate Change Policy • Information Technology Policy Implementation of 244,000 smart meters in 2022 - 429,000 in total 27 See more Sustainability Portal IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Operational Efficiency Operational Efficiency GRI 3-3 Operational efficiency is directly related to the initiation of a forfeiture process for breach the company's success in either business of contract. Within this context, expanding, continuity, economic-financial performance maintaining and upgrading the assets is a cen- or customer satisfaction. The commitment tral tool to ensure the efficiency of operations. to efficiency, as a permanent topic in the Strategic Planning, is also addressed in the To this end, studies are conducted based on Management Agreement executed by Copel (Holding Company) and its wholly-owned subsidiaries, which have areas dedicated to managing the topic. the methodologies of the Brazilian Electricity (Aneel) and other agents Regulatory Agency in the sector that project the growth of the consumer market, the existing and future generation potential, and the characteristics Operational excellence is also assessed in of the equipment that make up the electrical the certification processes. Copel currently system. The data is used to define the need has an Integrated Management System with for new substations and distribution and ISO 9001, 14001 and 45001 certifications transmission lines. in the electricity generation infrastructure operation and maintenance processes; and Operational efficiency is also the subject of ISO 9001 in the operation and maintenance the open innovation program (Copel Volt) processes of the electricity transmission and and of research and development projects distribution infrastructure. related to Aneel, through which Copel ap- plies technology as a differential for optimiz- In the Company's business area, efficiency is ing and transforming businesses, such as, required under the concession agreements for example, digitizing operation and mainte- and, if not met, leads to sanctions and even nance processes. 28 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Operational Efficiency Highlights 26,792.5 GWh Energy generated (+32%) Transmission Losses: 2.8% Distribution Losses: 9.0% Goals • Reach the efficiency standards adopted by the best companies in the industry Increase cost efficiency Increase the availability of the plants Increase the availability of transmission assets • • • • Reduce SAIDI and SAIFI Related Risks Loss of Concession • • Cybersecurity Breach • • Drop in Performance • Climate Change Impacts Technological Obsolescence SAIDI: 7.98 SAIFI: 5.29 29 Governance • Quality Policy • Equity Stake Policy See more Sustainability Portal IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Economic-financial Performance Economic-financial Performance GRI 3-3 Copel is committed to generating return for As a publicly-traded company listed on the The management assessment is based on its stakeholders, sufficiently remunerating the stock exchange, Copel discloses its results the analysis of the National Quality Founda- capital invested and keeping up its financial every quarter ensuring clear and accessible tion (Fundação Nacional da Qualidade - FNQ) capacity to maintain its activities and generate communication with internal and exter- in alignment with the Management Excel- sustainable growth. nal audiences based on the principles of lence Model adopted by Copel. The infor- The economic-financial results directly equal treatment, in compliance with Brazil- performance. The reports of analysts, which impact the management and its decisions ian and US law. are issued externally, are also used as a tool transparency, symmetry of information, and mation is compared with past and expected for analysis. including the use of funds, the ability to maintain and grow its business, the need to continue or review its strategies for effi- ciency, the decision of investors and share- holders, the ability to pay debts and obliga- tions before financial institutions, suppliers, employees, the federal government, the state, municipalities, and shareholders. Copel's economic-financial management is conducted by the Board of Finance and In- vestor Relations, which periodically submits the assessment of the economic-financial status of the business and any changes in scenario to senior management. 30 IntroductionIntegrated Report 2022 About Copel Strategy and Outlook Corporate Governance Capital Performance Annexes Introduction | Material Topics | Economic-financial Performance Highlights Net operating revenue BRL 21.9 billion (-8.6% as compared with 2021) Investments of BRL 2.3 billion (+6.9%) Goals • Increase net income • Reduce PMSO costs Increase profitability • Increase EBITDA • Related Risks • Failure in capital structure and performance • Failure in capital allocation • Failure to cut costs Governance • Fiscal Council • Investment and Innovation Committee (Comitê de Investimento e Inovação - CII) • Statutory Audit Committee (Comitê de Auditoria Estatutário - CAE) • Directly related policies: Financial Investment, Hiring of Independent Audit Services, Dividends, Investments, Trading of Securities of Own Issue, Investor Relations Net profit of BRL 1.1 billion (-77.2%) 31 See more Management Report and Financial Statements IntroductionIntegrated Report 2022 2 ABOUT COPEL 32 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Companhia Paranaense de Energia GRI 2-1, 2-6 Companhia Paranaense de Energia - Copel ergy distribution is concentrated in Paraná, received recognition for excellence in their reached its 68th year of operation in 2022 accounting for 98% of the state according processes and manage- ment, highlighting and has its activities integrated with activi- to the concession area contracts and it sup- Copel Distribuição, which has been a leading ties in the businesses of generation, trans- plies energy to more than 5 million residen- distributor in Brazil and Latin America for mission, distribution, and trade of energy tial, industrial and business consumer units the past five years. and natural gas. The head office is based in in the regulated market and consumers in Curitiba in the state of Paraná and its legal the free market (industry and commerce) in These differentials help keep Copel in the structure is a mixed-capital corporation con- accordance with the rules of the Brazilian portfolios of the São Paulo stock exchange: trolled by the state government of Paraná. Electricity Regulatory Agency (Aneel). Corporate Sustainability Index (ISE), for 17 years, in the Carbon Efficiency Index As the largest company in Paraná and one It employs almost 6,000 workers and 8,600 (ICO2 B3) and in the Great Place to Work of the country’s leading energy groups, Co- outsourced workers who work mostly in Index (IGPTW). In addition to B3, Copel has pel champions socio-economic and regional operation and maintenance (O&M) activities. shares traded on the New York and Madrid development by providing an essential stock exchanges. service sourced from a 94% renewable Copel was recognized in 2022 as the best energy matrix with security, resilience and company in the Brazilian electrical sector sustainable commitment. through the Valor 1000 Award granted by the Valor Econômico newspaper, in which, The Company's electricity grid is made up of in addition to quality and performance, its own power plant generation complex and the company stood out in both awards for transmission lines in ten Brazilian states, its social, environmental, and governance and holdings in other similar assets. The en- practices. The Company's businesses also 33 5 million of consumer units Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Responsible for the distribution of electricity to 98% of the state of PR Generation and Transmission Assets in ten states more than 5 million consumer units served Largest company in Paraná and one of the main energy groups in the country GENERATION 6,706 MW of installed power Renewable energy Today 94% 2030 100% The path to energy Copel has its activities integrated with activities in the businesses of generation, transmission, distribution, and trade of energy. 24 hydropower plants 2 thermopower plants: gas-powered natural and coal 38 wind farms TRADE 2.8 GW energy sold in 2022 1,5 00 clients nationwide TRANSMISSION 9,685 km of transmission lines in eight states2 51 substations3 TOTAL VOLUME GENERATED (in GWh) 23,682.2 hydropower plants 2,901.3 wind farms 204,26 thermopower plants DISTRIBUTION Copel DIS has:: over 200,000 km of distribution networks and serves: 5,020,528 consumers 34 1. Considered a grid market. 2. Total in proportion to GeT equity. 3. onsidering the equity stakes. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Copel in Brazil Net Operating Income (business share) Trade BRL 4.9 billion Distribution BRL 13.9 billion Generation BRL 4.1 billion Transmission BRL 1.1 billion Energy matrix (%)¹ Employees 6.2% 2022 13.8% 80% 15% 29% 2030² 56% 5,875 company employees 8,574 outsourced workers WATER SOLAR WIND POWER THERMOPOWER 1. Installed capacity. 2. Foreseen in the strategic planning. Hydropower Plant Power Distribution Wind Farm Substation Transmission Lines 35 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Generation and Transmission Business GRI 2-1 Copel operates with state-of-the-art tech- Grande do Norte state. It also started up the nology in the areas of power generation and operation of the Jandaíra Wind Farm two transmission, building, operating and main- years ahead of schedule. taining a diversified electricity system with its own generating complex of power plants With these investments, wind power Key Assets 54 own plants and 11 collaborations: (hydroelectric, thermoelectric, wind and generation has been growing year by year, • 24 hydropower plants solar power), transmission lines and substa- from 2,118.8 GWh in 2020 to 2,901.3 GWh • 38 wind farms tions, considering full and partnership-linked in 2022. infrastructures, and an installed power of • 2 thermopower plants • 1 Solar 6,706.4 MW (3,164.7 MW of guaranteed Copel operates in ten states (see map) and • 9,700 km of output). Via its holdings, it also has a solar is the 10th largest hydropower generator in transmission lines power operation (1.1 MW). the country in terms of installed capacity, • 10 states with a 3.7% share of national power. Copel Geração e Transmissão (Copel GeT) manages a large part of the operations in In the Transmission business, Copel these two segments, and the Holding Com- holds a 3.5% slice of the Brazilian market pany has a direct stake in some plants. through its own network and in equity amouning to 9,685 km in transmission In line with its 2030 Vision to generate lines and 51 substations in the basic grid. power exclusively from renewable sources The transmission concessions in operation and diversify its generation complex, Copel currently generate a Permitted Annual Rev- acquired in 2022 the Santa Rosa & Mundo enue (PAR) of BRL 1.39 billion in propor- Novo (SRMN) and Aventura wind farms that tion to its stake in the ventures. produce 260.4 MW, both located in Rio 36 6.7 GW generation 93.8% renewable On of 10 largest generators in Brazil Divestment in thermoelectric power plants underway Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Generation and Transmission Businesses GRI 2-1 0.9 0.4 1.3 2.5 TOTAL: 6.7 5.4 TOTAL: 8.7 4.9 INSTALLED CAPACITY 2022 (GW) INSTALLED CAPACITY 2030 (GW) (FORECAST) Hydropower Wind power Solar Thermopower GRI EU1, EU10 Net power generation (GWh)1 GRI EU2 2020 2021 2022 Hydropower plants² Thermopower plants3 Wind farms Solar power plants Total 11,232.5 15,798.6 23,682.2 994.6 2,307.5 - 4 1,784.6 4 2,691.4 -5 204.26 2,901.3 4.8 14,534.6 20,284.7 26,792.5 1. The indicator takes into consideration the amount generated by Copel GeT operations and by the plants that Copel Holding Company has direct equity in: Elejor, Dona Francisca, Voltalia and Solar Paraná. 2. The hydraulic power plants with installed capacity greater than 50 MW, correspond to the largest slice of the total energy generated by Copel. The power plants are coordinated centrally by the Brazilian Electricity Operator (ONS) and in accordance with the conditions of the reservoirs and system demand. The total generated also includes the Elejor, Foz do Chopim, and Dona Francisca power plants, in volumes that are proportional to Copel's share. 3. The increase in thermoelectric generation in 2020 and 2021 is associated with below average rainfall that caused ONS to require more generation from the Araucária thermoelectric power plant. The amounts informed also corre- spond to Copel's share. 4, The results from wind and thermoelectric power in 2021 were corrected because the values were published inverted in the previous report. GRI 2-4 5, The amount of energy generated from solar sources was wrongly reported in the previous report. In 2021, the solar plant was in the testing phase. 37 See more • Details of Performance in Infrastructure capital • Check out the total list of Copel's power plants and transmission lines and substations in Management Report Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Distribution Business GRI 2-1, 2-6 In December 2022, Copel Distribuição S.A. investing in the largest Smart Electrical Grid Market share1 (%) (Copel DIS) surpassed the mark of 5 million (SEG) project in Brazil to upgrade and auto- Brazil consumers connected to its grid, supplying mate the power grid in Paraná based on the Southern region electricity to 396 of the 399 municipalities in principle of smart cities/smart grid including Paraná Paraná and to Porto União in Santa Catarina. concepts such as bidirectionality, flexibility, 1. Distribution grid market. 6.4% 34.5% 97.1% digitization, and automation. 5,020,528 consumer units 397 municipalities served The company serves all sectors of the econ- omy (primary, secondary, and tertiary) with clients ranging from the residential, to the industrial, commercial, and rural segments covering roughly 200,000 km of distribution network. The consumers have a variety of service channels, such as apps for mobile devices, virtual agencies, call centers and social networks, including WhatsApp. Recognized as one of the main distributors in the country, Copel DIS invests heavily to ensure the quality of its supply. Its Trans- formation program involves mainly two pivotal actions: one aimed at rural areas to ensure supply security and service quality to rural producers (Paraná Trifásico). It is also 38 Efficiency indicators1 GRI EU28, EU29, SASB-IF-EU-550a.2 2020 2021 2022 SAIDI Copel SAIDI Aneel SAIFI Copel SAIFI Aneel 7.81 9.78 5.55 7.38 7.20 9.28 4.76 6.84 7.98 9.19 5.29 6.80 1. For the purpose of the concession agreement until 2021, the internal SAIDIi and SAIFIi indi- cators were considered as the target of the concession agreement - which encompass only the events that occurred in the distributor's assets, excluding transmission line events. As of 2022, there is no difference and the SAIDI and SAIFI cover all occurrences, regardless of origin, including losses in the basic grid that are external to the utility's distribution sys- tem and are of an imminently technical origin. The purpose of these indicators is to improve the quality of the service provided to the consumer. See more Details of distribution performance in Infrastructure capital Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Companhia Paranaense de Energia Trading Business GRI 2-1, 2-6 Copel is a pioneer in the free market (Mer- In 2022, it also started offering carbon credits cado Livre) and was the first to sell energy and I-REC certificates for guaranteed trace- to free Brazilian consumers in the 90s and ability of renewable energy. continues as one of the leading traders in this modality. Copel Mercado Livre has more than 1,500 customers in 23 states in Brazil. It traded Since it can rely on the integrated structure 2,8 average GW in the year - a growth of of one of the largest electricity providers 6.5% as compared with 2021. Since 2020, in the country, Copel Mercado Livre offers the volume of energy traded in this modali- customers easy access to services and ty has almost doubled. solutions, flexible and customized energy models and management for companies in all stages of qualification and purchase of energy in the modality. Copel was the first to sell energy to free Brazilian consumers in the 90s and continues to hold its position as one of the top traders of the country. 2.8 GW of energy sold Leader in free market sales in the country 1,500 customers in 23 states 39 See more Details of Performance in Infrastructure capital Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Corporate Structure Corporate Structure 12/31/2022 STATE OF PARANA 69.66% Voting 31.07% Total BNDESPAR 12.44% Voting 23.96% Total CUSTODY IN STOCK EXCHANGE (Free Float) 16.13% Voting 44.16% Total ELETROBRAS 1.45% Voting 0.56% Total Other Shareholders 0.31% Voting 0.24% Total B3 13.01% Voting 38.12% Total NYSE 3.10% Voting 5.96% Total LATIBEX 0.02% Voting 0.07% Total COPEL (1) COPEL GERAÇÃO E TRANSMISSÃO S.A. 100.0% (1) COPEL DISTRIBUIÇÃO S.A. 100.0% (1) COPEL SERVIÇOS S.A. 100.0% (1) COPEL COMERCIALIZAÇÃO S.A. 100.0% (1) F.D.A GERAÇÃO ENERGIA ELÉTRICA S.A. 100.0% (4) GUARACIABA TRANSMISSORA DE ENERGIA (TP SUL) S.A. 49.0% (1) NOVA EURUS IV ENERGIAS RENOVÁVEIS S.A. 100.0% (1) SÃO BENTO ENERGIA 100.0% (1) CUTIA EMPREENDIMENTOS EÓLICOS SPE S.A 100.0% (1) BELA VISTA GERAÇÃO DE ENERGIA S.A. 100.0% (1) MARUMBI TRANSMISSORA DE ENERGIA S.A. 100.0% (1) COSTA OESTE TRANSMISSORA DE ENERGIA S.A. 100.0% (1) UIRAPURU TRANSMISSORA DE ENERGIA S.A. 100.0% (2) UEG ARAUCÁRIA S.A. 60.9% Copel GeT 20.3% Copel Holding (3) FOZ DO CHOPIM ENERGÉTICA LTDA. 35.8% (4) MATA DE SANTA GENERBA TRANSMISSÃO S.A 50.1% (4) MATRINCHÃ TRANSMISSORA DE ENERGIA (TP NORTE) S.A 49.0% (4) INTEGRAÇÃO MARANHENSE TRANS. DE ENERGIA S.A. 49.0% (1) NOVA ASA BRANCA I ENERGIAS RENOVÁVEIS S.A. 100.0% (1) NOVA ASA BRANCA II ENERGIAS RENOVÁVEIS S.A. 100.0% (1) JANDAÍRA I ENERGIAS RENOVÁVEIS S.A. 100.0% (4) CAIUÁ TRANSMISSORA DE ENERGIA S.A. 49.0% (1) NOVA ASA BRANCA III ENERGIAS RENOVÁVEIS S.A. 100.0% (1) JANDAÍRA II ENERGIAS RENOVÁVEIS S.A. 100.0% (1) SANTA MARIA ENERGIAS RENOVÁVEIS S.A. 100.0% (1) SANTA HELENA ENERGIAS RENOVÁVEIS S.A. 100.0% (1) JANDAÍRA III ENERGIAS RENOVÁVEIS S.A. 100.0% (1) JANDAÍRA IV ENERGIAS RENOVÁVEIS S.A. 100.0% (4) CANTAREIRA TRANSMISSORA DE ENERGIA S.A. 49.0% (4) PARANAÍBA TRANSMISSORA DE ENERGIA S.A. 24.5% (5) UHE GOVERNADOR JAYME CANET JÚNIOR (MAUÁ) 51.0% (5) BAIXO IGUAÇU HPP 30.0% 40 GE OLHO D'ÁGUA S.A. 100.0% GE BOA VISTA S.A. 100.0% GE FAROL S.A. 100.0% GE SÃO BENTO DO NORTE S.A. 100.0% CENTRAL GERADORA EÓLICA SÃO BENTO DO NORTE I S.A. 100.0% CENTRAL GERADORA EÓLICA SÃO BENTO DO NORTE II S.A. 100.0% CENTRAL GERADORA EÓLICA SÃO BENTO DO NORTE III S.A. 100.0% CENTRAL GERADORA EÓLICA SÃO MIGUEL I S.A. 100.0% USINA DE ENERGIA EÓLICA GUAJIRU S.A. 100.0% USINA DE ENERGIA EÓLICA JANGADA S.A. 100.0% USINA DE ENERGIA EÓLICA MARIA HELENA S.A 100.0% USINA DE ENERGIA EÓLICA POTIGUAR S.A. 100.0% CENTRAL GERADORA EÓLICA SÃO MIGUEL II S.A. 100.0% USINA DE ENERGIA EÓLICA ESPERANÇA DO NORDESTE S.A. 100.0% (1) BROWNFIELD INVESTMENT HOLDING S.A. 100.0% (2) ELEJOR-CENTRAIS ELÉTRICAS DO RIO JORDÃO S.A. 70.0% VENTOS DE SERRA DO MEL BS.A. 68.84% Copel GeT 31.16% Brownfield (2) COMPANHIA PARANAENSE DE GÁS - COMPAGAS 51.0% EOL POTIGUAR B141 SPE S.A. 100.0% (3) CARBOCAMPEL S.A. 49.0% EOL POTIGUAR B142 SPE S.A. 100.0% EOL POTIGUAR B143 SPE S.A. 100.0% VILA PARAÍBA IV SPE S.A. 100.0% (3) DONA FRANCISCA ENERGÉTICA S.A. 23.0% (4) VOLTALIA SÃO MIGUEL DO GOSTOSO I PARTICIPAÇÕES S.A 49.0% (4) SOLAR PARANÁ GD PARTICIPAÇÕES S.A. 49.0% PHARMA SOLAR II GERAÇÃO DE ENERGIA DISTRIBUÍDA SPE LTDA. 100.0% PHARMA SOLAR III GERAÇÃO DE ENERGIA DISTRIBUÍDA SPE LTDA. 100.0% PHARMA SOLAR IV GERAÇÃO DE ENERGIA DISTRIBUÍDA SPE LTDA. 100.0% BANDEIRANTES SOLAR I GERAÇÃO DISTRIBUÍDA SPE LTDA. 100.0% BANDEIRANTES SOLAR II GERAÇÃO DISTRIBUÍDA SPE LTDA. 100.0% BANDEIRANTES SOLAR III GERAÇÃO DISTRIBUÍDA SPE LTDA. 100.0% USINA DE ENERGIA EÓLICA PARAÍSO DOS VENTOS DO NORDESTE S.A. 100.0% EOL POTIGUAR B 61 SPE S.A. 99.99992% Copel GeT 0.00008 Brownfield CENTRAL GERADORA EÓLICA SÃO MIGUEL III S.A. 100.0% USINA DE ENERGIA EÓLICA CUTIA S.A. 100.0% (1) Wholly-owned subsidiary (2) Controlled companies (3) Associated companies (4) Jointly-controlled companies (5) Consortia Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Top Awards and Recognition Acknowledgments ISE B3 (Corporate Sustainability Index) B3 ICO2 (Carbon Efficient Index) B3 IGPTW (Great Place to Work Index) B3 Valor 1000 Award - Best electricity provider in Brazil Valor Econômico Newspaper Largest Company in Paraná Amanhã Magazine 41 500 Largest Company's in the Southern Region – 3rd place Amanhã Magazine Paraná Climate Seal - Category A - external market Paraná State Government Gold seal of certification of the Brazilian GHG Protocol program GHG Protocol National Volunteering Incentive Award 2022 - the best project of the southern region in the Corporate Volunteering category Federal Government Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes About Copel | Top Awards and Recognition Acknowledgments Abrasca Award – 2nd place Copel Distribuição for best annual report Brazilian Association of Publicly-Held Companies (Associação Brasileira das Companhias Abertas - Abrasca) Abraconee Award – 1st place for the Best disclosure of Financial State- ments 2021 for holding companies and large-scale companies - Copel and Copel Geração e Transmissão Brazilian Association of Electric Sector Accountants (Associação Brasileira do Contadores do Setor de Energia Elétrica - Abraconee) Abradee Award - Best energy distribu- tor in southern Brazil Brazilian Electricity Distributor Associa- tion (Associação Brasileira de Distribui- dores de Energia Elétrica - Abradee) 42 Abradee Award - management quality Brazilian Electricity Distributor Association (Abradee) 100 Largest Corporations in Paraná – 1st place for Copel Distribuição and 8th place for Copel Geração e Transmissão Diário Indústria & Comércio e Fecomércio PR newspaper Best of Biogas Award – 3rd place in the Best Organization category International Renewable Energy Center (CIBiogás) - Biogás, the Brazilian agricultural research agency (Embrapa) – Swine and Poultry division – and the University of Caxias do Sul Best in Management - Gold category for Copel Geração e Transmissão National Quality Foundation (Fundação Nacional de Qualidade - FNQ) Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes 3 STRATEGY AND OUTLOOK 2 2 0 2 t r o p e R d e t a r g e t n I 43 IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Industry Context Industry Context SDG: Capitals: 7 8 9 11 13 Brazil, with about 85% of its generation deriving from clean sources, may become a player in the new global energy geopolitics. The external environment is signaling the Although emissions are currently amongst clean sources, is a differential that can make acceleration of profound changes in the the top global risks in the World Economic the country a player in the new global ener- energy sector, driven by energy transition Forum Reports, the pressure for clearer and gy geopolitics. and strongly supported by two acronyms: bolder targets for climate care has, since the ESG (environmental, social and gover- onset of the pandemic, caused countries, The Ten Year Plan of the Energy Research nance) and DDD (decarbonization, decen- productive sectors, and large companies to Office (EPE) predicts that the share of wind tralization and digitization). broaden their decarbonization actions. and solar energy sources in supply should increase from 11% to 16% by 2030, while The United Nations Organization (UNO) Renewable energy is expected to replace thermoelectric power should fall from 14% estimates that if nothing is done to increase fossil fuel in coming years, according to the to 8% in Brazil. decarbonization, we will reach 2100 with an International Renewable Energy Agency (Ire- average temperature 3.7 degrees Celsius na). In a report published in 2022, the agen- Distributed generation is also the essence above the pre-industrial revolution period. cy highlighted green hydrogen as one of the of decentralization in the Brazilian electricity The consequences of this include extreme drivers of change. Despite not mentioning sector. As such, the traditional centralized events, physical risks to cities and to infra- Brazil directly, the national energy matrix, generation model is undergoing a significant structure and production assets, and may with about 85% of generation coming from change and becoming more collaborative; By 2030 According to the Energy Research Office (EPE), wind energy supply should increase from 11% to 16%. Thermoelectric power should drop from 14% to 8% even compromise the survival of species and businesses. 44 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Industry Context 24.8 mi electric cars 9.7 bi inhabitants in 30 years Source: UN. however, this makes the structure more and the IEA predicts that this fleet could complex and demands new technologies to reach 230 million by the end of the decade. control the entire operation and store elec- tricity when there is excess generation. The smart city concept is also expected to take shape. The planet will be home to 9.7 The new regulatory framework for the elec- billion, according to UN data, inhabitants in trical sector is under debate in the country. 30 years, 68% of which will live in cities, ac- According to the proposal, all consumers cording to the United Nations (UN). Accord- will be able to opt for the free market (end ing to the institution, population and urban of the captive market), choose their energy sprawl is already creating sustainability chal- distributor by paying the local distributor lenges that could jeopardize the fulfillment only for the use of the infrastructure, choose of citizens' needs and the achievement of to favor a certain energy source or price, SDGs (Sustainable Development Goals). and their consumption profile. Accordingly, Administrative Rule 50/2022 published by Smart cities translate well the concept of the Mining & Energy Ministry will allow, as digitization in the electricity segment since of January 2024, all high voltage consumers they depend on the use of information and (Group A), to be eligible for the free market. communication technology (ICT) to improve operational efficiency, share information Electric mobility is another important ele- with the public, and provide a better quality ment of the energy transition. The electric of government service and citizen wellbe- and hybrid car fleet is expanding rapidly ing. Such technologies include the Internet worldwide. There are currently about 2 4.8 of Things (IoT), WiFi, Big Data, Cloud Com- million electric cars, according to IEA data, puting Mobile Apps, and AI, supported by 45 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Industry Context fiber-optic infrastructures, 4G/5G mobile electrical energy also help to reduce green- networks, data centers, and appropriate house gas emissions in the Brazilian electri- devices suited to the challenges and trans- cal system. formative vision of everyday life. This will require an upgrade in the electri- prepared for the future, through consistent cal power infrastructure so “smart grids” guidelines for all the Company's businesses. It is within this context that Copel is getting can be introduced. Smart grids are a new distribution architecture. They are more automated, sensor-driven, secure, and inte- grated to enable actions for the connection of all users. Within this concept, the flow of electrical energy and information is bidirec- tional, i.e., from the concession operator facilities as well as from the consumer unit facilities. This creates a new entity - the so- called "prosumer", who is a producer and a consumer at the same time, producing and supplying energy to the grid. The consumer units will also undergo a transformation, receiving smart meters that interact with the concession operator in real time to enable them to follow closely, or through the internet, how the energy is used in the home. In addition, the home- owners will be able to charge their electric vehicles. These possibilities of more eco- 46 nomical and conscious consumption of Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Copel Vision 2030 Copel Vision 2030 The core of the long-term planning of the Company - Copel Vision 2030, is to become one of the largest integrated energy groups in Brazil and hold a relevant stake in the four segments of the industry (Generation, Transmission, Distribution and Trade). 47 Recent highlights underpin the Company’s ucts, provide services and solutions that add position as one of the benchmarks of the value for the customer, carbon credits, the sector as confirmed by its recognition as sale of certified "clean" energy, and surplus the Best Company in the Electricity Sector renewable energy. in 2022 granted by the Valor Econômico newspaper through the Premio Valor 1000 In market share, Copel holds 6.2% of the award and the company’s achievement as distribution market, concentrated in Paraná one of Brazil’s and Latin America’s best (where it holds a 97% stake), 3.7% of the distributor for the past five years, as well as installed generation capacity, and 3.5% of a leader in the amount of energy traded in the transmission networks, with assets in the Mercado Livre in 2022. The Company 10 states Expanding this share is one of also stands among the ten largest genera- Copel's top strategic drivers, supported by tors in installed capacity and in the ten top asset decarbonization, integration with scale transmission companies in permitted annu- among the businesses, and discipline in al revenue. capital allocation. In order to continue growing, the basis of In the pillar of business decarbonization, the Company's value proposal is to focus Copel plans to make adjustments in its on continuously improving the customer ex- projects and diversify its assets so it can perience. A few of the initiatives to attract, become 100% renewable. The divestment retain and build customer loyalty are to offer of the Araucária and Figueira thermoelectric access through increasingly interactive digi- power plants is underway and is expected tal platforms and customized flexible prod- to be completed by 2023. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Copel Vision 2030 Copel Vision 2030 The generation will be expanded by wind Copel has been gradually improving its As such, the merging of its brand and and solar sources in order to cut dependen- capital allocation process so it can grow in reputation, its asset base, and the compe- cy on water as a source. Currently, 80% of a balanced and consistent manner. Instru- tencies of its people are factors that, added Copel's generation derives from hydroelec- ments created between 2021 and 2022 to the prospects of the Company's trans- tric power plants or small hydropower plants have improved governance for project de- formation process into a corporation (see (SHPs). The challenge is to reduce this share velopment and have stepped up structured more on the next page), place Copel in a of wind and solar generation to 44% by decision-making: the new Investment and unique position to find opportunities within 2030, with hydro generation accounting for Innovation Committee, an advisory body to a scenario of transformation and modern- 56% of the total. In 2023, this share rose the Board of Directors, and the approval of ization in the country’s energy sector (see from 12.6% to 17% through acquisitions the Investment Policy, which establishes the more on page 26 ). and the start up of a new complex two selection, assessment, approval, and moni- years ahead of schedule (see more on page toring criteria of the investments. 154). Besides the diversification of the ma- trix, the long-term plans predict an increase of 2 gigawatts in installed capacity. For such, CHALLENGES UNTIL 2030 the Company will need to increase installed capacity from around 250 MW to 300 MW per year - in 2022, it added 90.1 MW to its generation complex, all the additional vol- ume deriving from wind farms. 48 Diversifying the assets to become 100% renewable Reaching 44% in wind and solar power generation Increase by 2 GW the installed capacity Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Copel Vision 2030 Strategic objectives 2030 Transition to corporation • 100% renewable generation complex and 2 In November 2022, Copel released a material fact to the market announcing the intention GW of additional installed capacity of the government of Paraná, Copel's controlling shareholder, to transform the Company into a dispersed-ownership corporation without a controlling shareholder. The process of • Expand by 2,000 km the Transmission net- selling the controlling interest was based on a study by the Council for Control of State works, exploring synergy with Generation Companies (Conselho de Controle das Empresas Estaduais - CCEE) and comes in response and Distribution to the government's interest to raise funds for new state investments and to value Copel. The proposal was approved by the Legislative Assembly of Paraná in 2022 and is currently • Become one of the largest national dis- undergoing the legal procedures. tributors and create opportunities in new concession areas The goal is to conduct a secondary public offering of common shares and/or depositary receipts (units) as early as 2023. The State of Paraná will continue to hold a relevant stake • Distributed Generation (DG) as a strategy in the Company, at least 15% of the capital equity and 10% of the total voting stock. The for defense and consolidation in the sector official announcement of the decision also includes instruments to ensure the interests of the • Continue among the largest in the free Copel's headquarters in Paraná, the 10% limit for any shareholder with voting shares, and the market, with increased profitability creation of a special class of preferred share that gives the State of Paraná the right to veto Company, the State of Paraná, and customers and consumers, such as the maintenance of some investment decisions provided for in the by-laws (golden share). • Be recognized by customers for its innova- tive and digital service offers See the Material Fact 06/22 on Copel's website. 49 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Copel Vision 2030 ESG in Copel's strategy Copel is an ethical and responsible compa- administrative centers, which will also aim By 2021, Copel had already announced ny that has consolidated itself as an orga- to acquire WELL certification, based on the adoption of ESG goals as part of the nization that provides energy and solutions the monitoring of environmental and social variable offsetting program at all organi- for society. The Company endeavors to impacts. SASB-IF-EU-110a.3 zational levels. In this case, the following further integrate environmental, social, and indicators were defined: i) performance in governance (ESG) concerns into its agenda Other priorities of Vision 2030 are the the Corporate Sustainability Assessment of future actions and decisions over the commitment to ethics and governance and of S&P Global, and implementation of the next decade. the furthering of diversity, including targets neutrality plan, whose targets vary accord- to increase the female presence in leader- ing to the functional and subsidiary level), After building the Carbon Neutrality Plan in ship positions. Currently, women account ii) compliance of controls and, iii) zero fatal 2021, the topic continued to be a priority for for 21.6% of Copel's staff and 23% of the accidents involving employees and out- Copel and, in Vision 2030, it became linked managerial positions - the rate is 17% in sourced workers. The last two items are to the target to decarbonize its electricity top leadership (Board of Directors, Execu- reducers, i.e., if not reached in the year, generation matrix. Besides the commitment tive Board, Steering Committees and Board they reduce the bonus. Increase by 40% the share of women in leadership positions by 2025 with 100% renewable sources by 2030, the Assistants). The goal is to increase the strategic plan predicts a reduction in direct share of women in top leadership positions emissions (Scope 1) and surplus offsetting. by 40 % by 2025. The empower-ment of This includes investments to purchase elec- culture and its alignment to new tric vehicles for the company fleet, adopt challenges is also one of the priorities for solar generation to supply the company's upcoming years (see more on page 135). 50 In 2000, it was the first company in the electricity sector to join the United Nations (UN) Global Compact, and has since 2018 been committed to achieving the Sustainable Development Goals (SDGs) linked to the energy sector. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Business Model Business Model CAPITAL INPUT NATURAL Use of water resources to generate 23,682.2 GWh of electricity 93.8% of the generator complex uses renewable sources SOCIAL AND RELATIONSHIPS 5,020,528 consumers Various relationship channels with stakeholders: *Social Programs *Corporate volunteering *Engagement with the community HUMAN 5,875 company employees 8,574 outsourced workers INTELLECTUAL Investment in training and development of staff BRL 60.4 million invested in R&D by Copel Distribuição BRL 94.8 million invested in R&D INFRASTRUCTURE 24 hydropower plants 38 wind farms 2 thermopower plants and 1 solar 9,685 km of transmission lines » Sub- stations with a transformation capacity of 20,462 MVA FINANCIAL BRL 2.3 billion invested 51 Mission Provide energy and solutions for sustainable development Vision Become a benchmark in its businesses by adding value sustainably Trade rategy t S E f fi c i e n c y Generation Distribution Transmission Governanc e STAKEHOLDERS EMPLOYEES PARTNERS AND SUPPLIERS SHAREHOLDERS AND INVESTORS CUSTOMERS REGULATORY BODIES AND SECTOR ENTITIES SOCIETY OUTCOME NATURAL GHG emissions: *Scope 1: 50,834.44 tCO2 *Scope 2: 163,700.83 tCO2 SOCIAL AND RELATIONSHIPS 1,648 volunteer hours Abradee Satisfaction Survey - Residential Customer - 77% DER (Equivalent Complaint Duration) 120.50 (hours) FER 6.36 (unit) HUMAN BRL 858.7 million paid in salaries BRL 365.1 million paid in benefits BRL 367.4 million paid in Profit Sharing+Performance Bonus INTELLECTUAL Copel Volt: 6 Proofs of Concept (POC) Copel Venture: 150 million in investments INFRASTRUCTURE 92% of availability of generator complex 2.8% transmission losses 9.0% distribution losses SAIDI 7.98 SAIFI 5.29 FINANCIAL BRL 1.1 billion in net profit BRL 2.3 billion in investments BRL 21.9 billion in net revenue Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Sustainability Management Sustainability Management GRI 2-13 Copel and SDGs GRI 2-23 The Board of Directors (CAD) is the strategic The Holding Company defines the corporate In line with the importance of supplying a and decision-making body responsible for top guidelines and disseminates them through resource that is essential for socioeconomic corporate guidelines and a few of its duties policies and rules that apply to all company development and for people's quality of life, are to approve and oversee the policies and areas, including the subsidiaries. Copel uses the Sustainable Development their application in topics such as sustainabil- Goals (SDGs) as a benchmark in its actions. ity; climate change; people management and In order to meet the unique needs of the The Company made a commitment in 2018 occupational health and safety, among oth- businesses, every subsidiary has its own to collaborate with the achievement of the ers. The Sustainable Development Commit- specialized areas for managing socio-en- targets and goals that are associated with tee (Comitê de Desenvolvimento Sustentável vironmental aspects. Every operation activities in the electricity sector. - CDS) supports the CAD in the main topics requires different types of action and of the ESG agenda (see more on page 61). monitoring, aiming at socio-environmen- For such, Copel used for this definition SDG In 2022, Copel prioritized SDG 4 - Quality education tal compliance and adherence to the best the study organized by the Global Com- market practices. pact Network Brazil (RBPG), SDGs in the Brazilian Electrical Sector, which listed five The sustainability performance is assessed SDGs and eight targets in which energy through internal management, in addition to companies can and should engage to find a share in specialized market assessments, solutions and respond to these challenges. which enable a comparison with other The 2030 Agenda, of which the Sustain- companies. Among these assessments are able Development Goals are a part of, de- the B3's Corporate Sustainability Index (ISE) pends on the cooperation of all sectors of and S&P Global's Corporate Sustainability society to increase wellbeing and reduce Assessment (CSA). The results of these as- inequality worldwide. sessments are used as a basis for ongoing improvement of ESG-related processes. 52 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Sustainability Management In addition to SDG 7, which provides for uni- The Copel's priority SDGs are*: versal access to clean energy services, SDG 8, 9, 11, and 13 are also prioritized. The sec- tor-specific targets and actions to achieve them are included in this report. To facilitate 4. QUALITY EDUCATION communication, they have also been placed together in the Annex section along with Copel's full performance in each. The SDG icons in the report help correlate the topics with this global agenda. This lesson in performance and alignment with the SDGs has enabled Copel to expand its commitment. In 2022, the company an- nounced that it will also prioritize SDG 4, fo- cused on education. With relevant challenges to improve the quality of education in Brazil and the access to education offers, Copel is studying initiatives it can engage with. One of the opportunities found is to approach engi- neering schools and universities in an attempt to broaden access to training in this profes- sional field. Copel also sees the opportunity to encourage more girls and young women to pursue engineering as a career, eliminating barriers and biases to introduce more diver- sity into this field. The actions targeted at education are still under assessment and are not included in this report. Prioritized in 2022 exclusively by Copel. The definition of the goals and actions to be carried out are anchored on planning. 7. AFFORDABLE AND CLEAN ENERGY • 7.1 - Ensure universal, reliable, modern, and affordable access to energy services by 2030. • 7.2 - Substantially increase the share of renewable energy in the global energy mix by 2030. • 7.3 - Increase the rate of improvement in energy efficiency of the Brazilian economy by 2030. 11. SUSTAINABLE CITIES AND COMMUNITIES: • 11.1 - Ensure everyone has access to safe, suitable and affordable housing and basic services and urbanize slums by 2030. • 11.4 - Step up efforts to protect and safeguard the world's cultural and natural heritage. 8. DECENT WORK AND ECONOMIC GROWTH • 8.3 Promote development- 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE 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. 13. ACTION AGAINST GLOBAL CLIMATE CHANGE: • 13.2 - Integrate climate change measures into national policies, strategies and plans. • 9.1 - Develop a quality, reliable, sustainable and robust infrastructure, including regional and cross-border infrastructure to support economic development and human wellbeing with a focus on equitable and affordable access for all. • 9.4 - Upgrade the infrastructure and refurbish industries to make them sustainable, with increased efficiency in the use of resources and greater use of clean and environmentally sound industrial technologies and processes, by 2030; with all countries operating in accordance with their respective capabilities. Annex - See the complete list of goals and Copel's performance in each of the SDGs. 53 *The goals related to each SDG are commitments from the Brazilian electricity sector, which were also undertaken by Copel. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Sustainability Management ESG Journey at Copel 2000 • Pioneer in the electrical sector as a signatory of the Global Compact 2017 2018 2020 2021 2022 • Creation of the Governance, Risk and Compliance Office • Copel builds Brazil's first electrical railway • Prioritizes SDGs in the Electricity Sector • Concept B in the CDP climate change questionnaire • Human Rights • Pro-Ethics Seal • Carbon Neutral Plan • Migration to Level 2 of governance at B3 • Creation of committees: Sustainable Development, Minority and Investment and Innovation • Expansion of minority shareholder representatives on the Board of Directors • Insertion of ESG goals into the variable remuneration • Code of Conduct Review • Vision 2030 with ESG goals • Adherence to the Transparency Movement 100% - UN Global Compact • Adherence to the Net Zero Ambition Movement - UN Global Compact • Restructuring of Policy the whistleblowing channel Prioritized SDGs 54 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Strategy and Outlook | Voluntary Commitments Voluntary Commitments GRI 2-23 Copel joined the Transparência 100% (Trans- parency 100%) Movement in 2022, the first corporate initiative to foster transparency in Brazil and which aims to encourage and enable companies to go beyond their legal obligations, supporting mechanisms for transparency and integrity in companies that stand out to make themselves more resilient and role models for other companies in the country. Copel is also engaged with other national and international movements that seek to find solutions for society's common challeng- es and expand its contribution by generat- ing shared value. Initiatives in which Copel is engaged United Nations Global Compact Business Pact for Integrity and Against Corruption Business Contribution to Foster a Green and Inclusive Economy Call to Action for Governments to Fight Corruption Network of Companies for Learning and Eradication of Child Labor National “We Can” (Nós Podemos) PRME - Principles for Responsible Management Education Business for Climate Positioning - CEBDS 100% Transparency Movement Net Zero Ambition Movement Adoption 12/Jul/2000 22/Jul/2015 11/May/2012 02/Dec/2014 26/Nov/2016 08/Mar/2016 16/Nov/2018 31/Aug/2021 11/Oct/2022 12/Apr/2022 55 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes 4 CORPORATE GOVERNANCE 56 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure Corporate Governance GRI 2-1, 2-9, 2-10, 3-3, 2-24 Governance Structure SDG Capitals 7 8 9 11 13 At B3, Copel has been part of Level 2 of governance since 2021. Its system also adopts the Code of Best Governance Practices for Listed Companies, of the Brazilian Corporate Governance Institute (IBGC), and meets the criteria of the Securities & Exchange Commission (SEC). Copel is a mixed-capital corporation US stock exchange, and Brazilian legal and one for an employee representative. In the controlled by the State of Paraná, public- regulatory provisions. current member breakdown of the Board, ly traded on the stock exchanges of São 77.8% are independent, which is higher than Paulo (B3), New York (NYSE) and Madrid Copel's governance structure is formed by the minimum 25% set forth in the Compa- (Latibex) - which requires a robust system the General Shareholders’ Meeting and its ny's Bylaws. of governance to ensure that the perfor- Nomination and Assessment Committee mance of the managers and the strategic and the Fiscal Council, followed by the Elected at the general shareholders’ meet- planning is aligned with the interests of Board of Directors of the Holding Compa- ing, the board members serve a two-year the Company, its stakeholders and the ny, its advisory committees and the Full term, with up to three consecutive re-elec- government of Paraná. Board. This system also incorporates the tions allowed. governance of wholly-owned subsidiaries as At B3, Copel has been part of Level 2 of established in the sharing agreement. The nomination process follows the Nom- governance since 2021. Its system also ination Policy and the Internal Standard for adopts the Code of Best Governance The Full Board is a strategic deliberation the Nomination of Members of Statutory Practices for Listed Companies, of the board, composed of nine board members Bodies, which determine, among other Brazilian Corporate Governance Institute appointed initially by the controlling share- topics, the nomination of professionals (IBGC), and meets the criteria of the Secu- holder (State of Paraná) with the exception with notable experience and the profile rities & Exchange Commission (SEC), the of three spots for minority shareholders and required for the position. They also indicate 57 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure Governance Profile GRI 405-1 the complementarity of competencies, the The Nomination and Assessment Commit- availability of time to do the job, and diver- tee, an advisory body to the shareholders, sity, including in regard to gender, religion, verifies the compliance of the process, and age and race, such as guidelines that must every candidate is submitted to a verification be followed in the election of Board and of requirements and the absence of imped- PROFILE BY GENDER BOARD OF DIRECTORS Independent Directors 77.8% advisory committee members and the fiscal iments defined by law. This verification is councilors. At least one member with rec- performed by the Governance, Risk, and ognized experience in corporate accounting Compliance Office. is also a requirement for the Statutory Audit Committee. For the position of employee Copel's bylaws have forbidden since 1994 representative, Copel opens a candidacy the possibility of the positions of Chairman and election process for all employees, via of the Board of Directors and CEO or top MALE 88.9% FEMALE 11.1% an official internal announcement. executive of the Company to be accumulat- BOARD ed by the same person. GRI 2-11 MALE 85.7% FEMALE 14.3% PROFILE BY AGE BOARD OF DIRECTORS BETWEEN 30 AND 50 44.4% OVER 50 55.6% BOARD Members of the Board of Directors of Copel (Holding Company) Marcel Martins Malczewski* (chairman) Participating Committees Daniel Pimentel Slaviero Marco Antônio Barbosa Cândido* Carlos Biedermann* Gustavo Bonini Guedes* Leila Abraham Loria* Andriei José Beber* Marco Antônio Bologna* Investment and Innovation Committee Sustainable Development Committee Statutory Audit Committee Investment and Innovation Committee Statutory Audit Committee Minority Shareholders' Committee Sustainable Development Committee Minority Shareholders' Committee Investment and Innovation Committee Minority Shareholders' Committee 58 BETWEEN 30 AND 50 71.4% OVER 50 28.6% *Independent members in compliance with Federal Law 13303/2016. Fausto Augusto de Souza (employee representative) Sustainable Development Committee Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure GENERAL SHAREHOLDERS’ MEETING NOMINATION AND ASSESSMENT COMMITTEE* FISCAL COUNCIL STATUTORY AUDIT COMMITTEE* BOARD OF DIRECTORS SUSTAINABLE DEVELOPMENT COMMITTEE* INTERNAL AUDIT FULL BOARD INVESTMENT AND INNOVATION COMMITTEE* CHAIRMAN MINORITY SHAREHOLDERS' COMMITTEE* Holding Company FINANCE AND INVESTOR RELATIONS BOARD BUSINESS MANAGEMENT BOARD LEGAL AND REGULATORY BOARD BUSINESS DEVELOPMENT BOARD 59 GOVERNANCE, RISK AND COMPLIANCE OFFICE *Statutory Committees. 1. The Nomination and Assessment Committee is shared with Copel’s wholly-owned subsidiaries (Holding Co.). 2. The Internal Audit department reports to the CEO and functionally to the Board of Directors through the Statu- tory Audit Committee. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure Best Practices • A 50% increase in involvement of In 2021, Copel's senior management revised representatives of non-controlling the bylaws of the statutory bodies and set After putting in place a series of mecha- shareholders in the Board of Directors, in motion the operation of the three new nisms to support its corporate governance from two to three directors. advisory committees of the Board of Direc- structure in 2021, Copel continued to im- tors, instruments that enable an expansion in prove its instruments in order to maintain a • Inclusion of an independent external qualified analysis, production of knowledge robust structure that can keep pace with the member in the Statutory Audit and discussion of strategic issues to support evolution of market practices. Committee. the decisions of the Board of Directors. Three new statutory advisory committees were Copel's new bylaws, approved in 2021, now • Creation of three committees to assist the created in 2021 and went into operation in include significant advances in corporate Board of Directors. 2022 after the approval of their bylaws and governance, including: • Creation of a statutory provision that guarantees the full pass-through of tariffs approved by Aneel. • Adherence to Level 2 of Corporate the election of their members: Investment and Innovation Committee (Comitê de Investimento e Inovação - CII) Governance at B3, the highest level in This is a governing body that supports the governance practices. review and development of strategic guide- lines regarding investments, creation of new • Tag along of 100% for Common and products and services, and new businesses, Preferred shares, in equitable treatment in addition to issues such as divestments, to shareholders. participation in auctions, monitoring of project execution, as well as others. Formed by three • Voting rights for preferred shareholders in board members, one of which represents matters dealing with the transformation, minority shareholders, this Committee is incorporation, spin-off or merger of the aligned with Copel's commitment to efficien- Company. cy and to allocate funds properly. 60 • Creation of a UNITs Program. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure Sustainable Development Committee (Comitê de Desenvolvimento Sustentável - CDS) GRI 2-13 With the purpose of assisting the Board of Directors in creating guidelines, policies and main topics related to people manage- ment and ESG, this Committee has enabled greater interaction of the board members with the Company's sustainability agenda. In 2022, the governing body was particularly active in defining the commitments related to the ESG agenda, indicators and goals aligned to Copel's Vision 2030, and the analysis and reports related to policies with topics related to its mission. Minority Shareholders' Committee (Comitê de Minoritários - CDM) This committee is a new feature in the governance structure, and oversees trans- actions classified as atypical between Copel and the controlling shareholder, to enhance transparency and protect its rights. Formed by the three directors who represent the Company's minority shareholders, it is See more Like the other advisory committees to the Board, it is statutory and had its regulations approved in 2021. Other advisory committees: Copel also maintains the Nomination and Assessment Committee, related to the process of selecting administrators, and the Statutory Audit Committee (CAE), an inde- pendent body with responsibilities, attribu- tions and competences that are aligned with the laws of Brazil and the United States, including the Sarbanes-Oxley Act (SOx) and best practices. Currently, the Committee consists of three independent members. The committees are instruments that expand the spaces for qualified analysis, knowledge production, and discussion of strategic topics to support the decisions of the Board of Directors. convened whenever there are transactions To learn more about the full structure of the committees, the résumés of their members and the regulations 61 of this nature - which did not occur in 2022. of the full board entities, go to the Investor Relations page on Copel's website. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Governance Structure Wholly-owned Subsidiaries Copel's wholly-owned subsidiaries - Copel aimed at the issuance of shares. These Management maturity Distribuição, Copel Geração e Transmissão, are measures that underpin transparency Copel Comercialização and Copel Serviços and governance practices, as well as the To assess the maturity and quality level of - also have their Boards of Directors opportunity to diversify funding sources Copel’s corporate governance, the Company par- focused on guiding and planning each of and optimize the debt profile. the businesses. Each is made up of three ticipates in indexes and market recognitions that allow comparison with its peers and companies members elected at the respective General Approved at the end of 2021, the Statutory in different sectors: Índice de Sustentabilidade Shareholders' Meeting who have a two- Audit Committee for the subsidiaries Empresarial (ISE B3), Corporate Sustainability year term of office with the possibility of of Copel GeT (CAE GeT Controlled Assessment (CSA) and Pro-Ethics Company Seal reelection. These boards are chaired by Companies) had its members appointed - all voluntary initiatives. Copel's CEO, Daniel Slaviero. in 2022 and its bylaws approved. The constitution of the CAE GeT Controlled Another instrument for comparison is the Cor- Copel DIS and Copel GeT are listed as a Companies complies with Federal Law porate Governance Report, drawn up in accor- publicly-traded company on Category B of 13303/2016 (Law of Responsibility of dance with CVM Instruction 80/2022, in which B3 of the São Paulo stock exchange. The State-run Companies) and its attributions Copel reports its level of adherence to the listing of Copel DIS was the most recent, include, among others, to supervise, practices of the Brazilian Corporate Governance approved in May 2022 by the Brazilian review and monitor the activities Code - Publicly-traded Companies. Securities & Exchange Commission of directly and indirectly controlled (CVM). This registration is part of the companies. This body is made up of three Company's strategic planning and is not members from outside the Company. See the bylaws and internal regulations of every governing body. 62 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Development of Governance Bodies Members Development of Governance Body Members GRI 2-17, PRME 1, 2, 3 Increasingly rapid and disruptive transfor- The actions were structured with the support The members of the full boards also under- mations allied with new challenges in the of a specialized consulting firm and the train- go annual high-level training on topics such energy sector expand the discussion agenda ing is done in partnership with the Brazilian as corporate and capital market legislation, of the organizations and require senior man- Corporate Governance Institute (IBGC). Train- information disclosure, internal controls and agement to constantly seek improvements ing strategies include online and/or face-to- risk management, Code of Conduct, anti-cor- and developments. face training, incentives for extension courses, ruption practices and others. In these cases, and professional mentoring hours are also participation is mandatory and the training Copel maintains a development program for offered, primarily for members of the Board of sessions were attended by 100% of the directors, fiscal advisors, committee mem- Directors and the Sustainable Development board members, the fiscal council, the advi- bers, and executive officers that goes beyond Committee. Currently, four advisors are attend- sory committees, and the executive board. the legal requirements established in Law ing coaching processes. Two of the Company’s 303/2016 (Law for State-run Companies). directors are taking an extension course, one 13 , Other initiatives that were also promoted: Restructured in 2022, the program con- agement, and the other an Executive MBA to templates three pillars: one aimed at legal increase economy-based knowledge. is earning an MBA in Strategic People Man- training, another focused on the training and qualification of these leaders for the The discussions and dissemination of infor- performance of their duties and governance mation connected with this key area have dynamics, and a third pillar targeted at also been broadened through the Sustain- strategic topics. In the latter key area, the able Development Committee, created in training contents cover the ESG agenda, 2021. In 2022, one of the meetings fea- innovation and trends, as well as concepts tured a talk by an ESG management expert. and developments related to the human Integral health is also on the list of subjects capital agenda. that will be discussed. The Board of Directors of Copel Holding Company and the subsidiar- ies attended a training session on Risk Management with a special- ized consulting firm. The cybersecurity program provided two training courses, in EAD format, exclusively for top governance. The directors of the wholly-owned subsidiaries participated in one of the most prestigious events in the electricity sector, the National Electricity Sector Meeting (ENASE) to boost their knowledge. Participation of a board member and a director in the First Edition of the Leadership Development Program for Women, aimed at Copel managers and supervisors. 63 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Development of Governance Bodies Members Demystifying governance Performance assessment GRI 2-18, 3-3 As established in Article 81 of the Company's º from the need for improvement was an in- Bylaws and in the Policy for the Annual Perfor- crease in training hours on the ESG agenda mance Assessment of the Statutory Bodies, and more proximity to operations - in 2022, In an event attended by board members, Copel the statutory bodies of Copel (Holding Compa- the board members visited the hydroelectric held a meeting with employees to give special ny) and its wholly-owned subsidiaries undergo power plant of Foz da Areia and Gov. Pedro attention to the role of the G (Governance) in the an annual performance assessment process. Viriato Parigot de Souza. In all, 13 improve- ESG acronym in the Company's value creation. The demand for this analysis is also provided ment actions were defined for the agency. for in the applicable law and is part of the best Andriei José Beber, president of the corporate governance practices. In addition to the statutory bodies, the mem- Sustainable Development Committee, and Leila bers of the Executive Board and the Corporate Abraham Loria, independent board advisor and The Board of Directors is in charge of the Governance Office are evaluated - 31 members former president of IBGC's Board of Directors, process, with methodological support from were evaluated in 2022 (100% of the mem- drew attention to the importance of governance the Nomination and Assessment Commit- bers of the Board of Directors, Fiscal Council, policies, rites, and concepts, in addition to tee, and comprises collective assessments Advisory Committees, management of the issues such as compliance, transparency, (from peers and the entity) and self-assess- wholly-owned subsidiaries, and the Holding company valuation, and the role of ESG in ments with independence ensured through Company's management). market opportunities. the hiring of an external consulting firm. Remuneration GRI 2-19, 2-20 The event was viewed live or through later Revised in 2021, the assessment mod- recordings by roughly 3,000 attendees, el has strengthened integration with the The remuneration of the statutory bod- including directors, CEOs, managers, and development cycle of the top leadership. ies' members is defined by means of the employees in general. The feedback culture has also been given Statutory Bodies' Remuneration Policy (NPC a boost through individual meetings with 0321) approved by the Board of Directors the chairman of the Board of Directors for and is executed according to the budget feedback about the process. One of the forecast approved by the general sharehold- initiatives of the assessments that resulted ers' meeting, taking into consideration the costs and risks involved. 64 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Development of Governance Bodies Members The remuneration policy adopted by the Company is in line with the market with the recommendations of the best corporate governance practices of the Brazilian Corpo- rate Governance Institute (IBGC) and was ap- ESG indicators in variable remuneration proved by the Board of Directors at its 221st To maintain the commitment and engagement of Copel's professionals at all levels of Meeting held on December 8, 2021. the organization, Copel put in place ESG goals within its meritocracy program - linking up to 30% of the variable remuneration program to goals related to climate and overall The Remuneration Policy defines the sustainability performance, occupational health and safety, and internal controls. In guidelines, the governance required for health and safety, the agreed target is zero fatal accidents with employees and service remuneration approval and the remunera- providers, a significant commitment and which has been extended to the value chain. In tion components. the case of both safety and internal controls, the goals are reductive - i.e., if there are any material flaws pointed out in the external audit or accidents with fatalities, a penalty is Under the terms of its internal rules, the Sus- applied in the variable remuneration. tainable Development Committee (CDS) has the prerogative of analyzing, assessing and Bonus tied to ESG goals: recommending to Copel's Board of Directors the strategic guidelines or improvements in the compensation practices of the Executive Board, the Councils and the Company's Statu- tory Committees. The annual global remunera- tion of the members of the statutory bodies is set by the shareholders in a General Meeting. In addition, Copel periodically contracts mar- ket salary surveys to evaluate its remunera- tion policies for the statutory bodies. 65 10% Corporate Sustainability Assessment (CSA) and implementation of the Neutrality Plan 10% Internal controls indicator 10% Occupational health and safety indicator - zero fatal accidents with company and outsourced workforce Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Ethics and Integrity Ethics and Integrity GRI 2-23, PRME 1, 2 Copel's Integrity Program is aligned with the Anti-Corruption Law (12 846/2013) and , the Accountability Law for State-Run Companies (13 , 303/2016). With a scope that encompasses all employees, managers and fiscal council members, the Integrity Program is structured to prevent, detect and remedy potential harmful acts such as conflicts of interest, fraud in bidding processes and payments, among other points. In order to continue ensuring the application of best practices, the Company is working towards acquiring the ISO 3730 1 certifi - cation process and has revised a series of practices and standards, expanded the interaction between the controls and risk management processes, and put in place other improvements throughout 2022. The certification should be completed by 2023. The ISO 37301 standard on compliance systems was released in 2021 and supports organizations in the development of a positive and effective compliance culture, 66 employee behavior and attitude. Code of Conduct the Brazilian Government Accountability Of- fice and by the Ethos Institute for Business Created in 2003, the Code of Conduct was and Social Responsibility. revised and updated in 2022, with the inclu- sion of new topics and a more user-friendly The Code of Conduct establishes parame- structure and layout. The document offers ters of conduct for employees, members of guidance about the conduct expected from the Board of Directors, Councils and Com- all those who perform activities on behalf of mittees, interns, suppliers, service providers Copel and its equity holdings and includes and contractors. In the case of contracting references to conduct concerning contempo- and purchasing, companies formally commit 100% of the employees will attend Code of Conduct training until the end of 2023 rary matters, such as social networking, pro- to the Code. tection of personal data, working from home, and cybersecurity. It also offers guidance on issues related to transparency, participation in auctions, health and safety, social and environmental responsibility, and respect for human rights, as well as others. After the document's release, 100% of the company employees will undergo training on the Code of Conduct until the end of 2023. The review process received the support of a specialized consulting firm and the bench- marking of companies that, like Copel, have the Pro-Ethics seal, awarded by the Office of Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Ethics and Integrity Conflicts of interests GRI 2-15 Integrity training GRI 205-2 Copel’s guidelines for dealing with conflicts manner. If the administrator does not speak The disclosure and dissemination of the of interest are described in the bylaws and up, any person present who has knowledge Integrity Program and other compliance internal regulations of Copel’s statutory of the fact may do so. Conflicts of interest initiatives are periodically carried out by the bodies and the wholly-owned subsidiaries, are recorded in the minutes of the Board Governance, Risk and Compliance . Office according to the applicable law, specific of Directors' meetings available on Copel's Copel maintains the Integrity Portal for the policy and the best corporate governance website, and the director involved must internal audience and the Sustainability practices of the Brazilian Institute of Corpo- temporarily withdraw from the meeting. Portal for the external audience. rate Governance (IBGC). Additionally, the Board of Directors approves With the return of in-office working in early The functions, roles, and responsibilities of and keeps updated the Related-Party Trans- 2022, specific training on various related governance agents are clearly described. action and Conflict of Interest Policy and topics was stepped up. One such training In addition, the Company has a structure of sets guidelines to ensure the Company's was on internal controls for people from statutory bodies that operate with different best interest and the principles of indepen- key areas involved in these processes levels of responsibility and attributions. dence, competitiveness, compliance, trans- and another that focuses on respect for parency, equity, and commutativity. human rights and diversity. A communi- The internal bylaws of the Boards of Copel Holding Company and the wholly-owned subsidiaries detail the procedures for the resolution of potential conflicts of interest, especially in chapter IV(26). When a conflict or particular interest of one of the admin- istrators is identified in a certain matter and needs resolving it is the duty of the administrator to manifest himself in a timely Conflicts of interest are recorded in the minutes of the Board of Directors' meetings available on Copel's website. cation tool, dubbed Compliance Alert, is sent to all employees via email - one issue in 2022 was dedicated to questions about discrimination. Training on anti-corruption and harassment practices also underwent revision in 2022 and will be offered in early 2023 to company employees. As a result of the revision of the Code of Conduct, everyone will also undergo training on the document's topics by 2023. 67 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Ethics and Integrity Annually, the members of the senior man- agement and governing bodies undergo training on economic, social, and environ- mental topics, including Internal Control and Risk Management; Integrity; Anti-corruption; Communication with the Market and Trans- parency and Accountability; the role of the Board of Directors and Fiscal Council and its compliance with the Anti-corruption Law (Law 12 , 846/2013). Integrity policies and practices are also topics discussed with suppliers. Copel held an online meeting in 2022 to talk about anti-corruption measures, code of conduct, and other actions. In addition, it will provide training for this audience on the updated code of conduct in 2023. NUMBER AND PERCENTAGE OF GOVERNING BODY MEMBERS WHO RECEIVED TRAINING ON ANTI- CORRUPTION GRI 205-2 Total members of the governing bodies Members of governing bodies who received training Percentage of governing body members who received training (%) 45 45 100% NUMBER AND PERCENTAGE OF EMPLOYEES INFORMED OF ANTI-CORRUPTION POLICIES AND PROCEDURES GRI 205-2 Job category Operational Secondary-level technical pro- fessional Secondary-level professional University-level professional Intern Employee Total Total employees informed Percentage of employees who were informed 18 1,450 3,271 1,136 287 18 1,450 3,271 1,136 287 100% 100% 100% 100% 100% NUMBER AND PERCENTAGE OF EMPLOYEES WHO RECEIVED TRAINING ON ANTI-CORRUPTION GRI 205-2 Job category Operational Secondary-level technical professional Secondary-level profes- sional University-level profes- sional Intern Total employees by job category 18 Employees who received training Percentage of employees who received training 100% 18 1,450 3,271 1,136 287 1,450 2,984 1,083 94 100% 91% 95% 33% BUSINESS PARTNERS INFORMED ABOUT ANTI-CORRUPTION POLICIES AND PROCEDURES 68 Total business partners 3,410 Business partners informed 2,245 Percentage of business partners informed 66% Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Ethics and Integrity Anticorruption practices GRI 205-1, 205-3 In addition to the Integrity Program and the Code of Conduct, the most relevant guiding instruments for preventing and fighting corrup- tion within the Company, Copel also follows Copel is Pró-Ética (Pro-Ethical) Company Reporting channels GRI GRI 2-26, 2-25 Copel encourages its stakeholders to record any situation that signals a violation of ethical principles, policies, rules, laws and regulations or other improper conduct and keep specific records for these purposes, corporate policies, periodically reviewed and in The Pró-Ética Company seal recognizes with guaranteed confidentiality. line with the US Foreign Corrupt Practices Act integrity initiatives voluntarily adopted (FCPA) of 1977 and the Sarbanes-Oxley Act, by companies with measures aimed at 2002, and the Committee of Sponsoring Orga- preventing, detecting and remediating nizations of the Treadway Commission (Coso). acts of corruption and fraud. In the The Whistleblowing Channel is managed by the Governance, Risk and Compliance Office and it receives reports about: harassment 2020/2021 edition, 327 companies and discrimination, corruption, destruction or Copel's operational processes are submitted requested access to the program and, annually to a risk assessment to detect errors after the assessment process, 67 or fraud and are tested by Internal and Exter- companies were approved and recognized nal Auditors. - among them Copel. The initiative is the result of a partnership between the Considering Copel (Holding Company) and Brazilian Government Accountability its wholly-owned subsidiaries, 100% of Office (CGU) and the Ethos Institute for Copel’s operations were submitted to a Business and Social Responsibility. risk assessment related to corruption in 2022. No corruption-related lawsuits filed against the organization or its employees were identified. 100% of the Company's operations are submitted to risk assessments related to corruption. damage to company assets, misconduct, favoritism, fraud or theft of goods and/or money, irregularities in financial statements and/or management reports, environment, noncompliance with internal policies and/ or procedures, misuse of Copel’s resources, leaked or misused information, infringement of laws, violations of Law 12 846/2013 (Anti- , Corruption Law) and other unlawful actions. The channel received 330 reports in 2022, less than the previous year, when the chan- nel was contacted 351 times. Forty-two of the total complaints received were assessed and considered unfounded by the Ethics Committee. The Ethics Guidance Commit- tee, made up of three directors, evaluates 69 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Ethics and Integrity the reports making sure to keep the ethical For reports of fraud and theft on the power and moral standing of Copel and its whol- grid, Copel has a specific contact available. ly-owned subsidiaries at the highest level. Cases of harassment are reviewed by the One of the topics with the highest number Committee for the Analysis of Bullying of complaints in the Whistleblowing Channel Claims (Cadam). were: conduct; non-compliance with internal policies and procedures. The Ombudsman's Office is another service and is ISO9001 certified and recognized as In order to keep moving forward and ensure the one of the best ombudsman's offices in the adoption of best practices, Copel plans to con- sector by the Brazilian Electricity Regulatory duct an effectiveness test of the internal controls associated with the Whistleblowing Channel in (Aneel). There are also other Agency communica-tion channels for consumers 2023. The channel is corporate, unified for the and clients to contact about their services Copel Holding Company and its wholly-owned (see more on page 109). subsidiaries, suppliers, clients and consumers, as well as others. Whistleblowing Channel - Nature of the report Other U.S. Conduct No-compliance with internal policies and procedures Query/doubt Labor law violation Favoring suppliers or consumers Misuse of company of money Fraud or theft of money Environment Sexual harassment Bullying Discrimination (race, color, sex, religion, etc.) Violation of laws - other Physical assault Conflicts of interest Destruction or damage of company property Information leaks or misuse Customer data breach or loss Corruption Theft, robbery or misappropriation of goods Total Amount 76 65 60 28 21 14 14 9 9 6 5 5 4 3 3 2 2 2 1 1 330 Complaints handled by Ethics Committee Amount Denied Out of scope Not enough data Granted SOx Testing Questions answered Partially founded In analysis Under review Total 78 69 44 37 9 25 8 43 17 330 70 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management Risk Management GRI 2-16 The Integrated Management Policy for the Company is exposed are described in mation of the energy sector, as well as Corporate Risk is based on the Company’s 20-F Form and on Company's website. the Company's transition scenario for a values, on its Code of Conduct and on the dispersed-capital corporation (see more guidelines issued by the Committee of The strategic risks associated with its op- on page 49) are also part of the periodic Sponsoring Organizations of the Treadway erations are reviewed during the Strategic analyses in the risk map. Commission (COSO). The review process Planning setup, a job carried out jointly by is annual, when it is also approved by the the senior management of Copel (Holding According to the risk policy, periodic reports Board of Directors, led by the Statutory Company) and its subsidiaries through the of the risk portfolio and respective mitigation Audit Committee and conducted by the identification and analysis of risk, the defi- plans are made to Senior Management (quar- Risk and Compliance . Office nition of a control and contingency plan and terly for analysis by the Audit Committee and the establishment of oversight actions. In Fiscal Council and semi-annually for analysis The policy’s rules apply to the corporate addition to the strategic ones, the manage- by the Board of Directors). Accordingly, Co- areas, the wholly-owned subsidiaries and ment structure classifies the main risks into pel's strategic risk management process has the controlled companies, and are recom- Financial, Operational, and Compliance. been consistently improved in accordance mended for the jointly controlled companies, with the best market practices and in compli- the associated companies and other equity In 2022, the company has intensified its ance with the laws in effect. interests of Copel. The senior management assessment of climate risks. Previously also undergoes annual training regarding the rated as a socio-environmental risk, climate To better guide leadership and support risk policy, while employees are trained on the change-related threats and their physical and decision-making, the periodic risk report has risk management methodology. transitional challenges have been segment- an ESG profile, in which the main environ- Some of the main risks faced by Copel and its wholly-owned subsidiaries are described ed and further detailed in the management mental, social, and governance aspects are framework (see more on page 9 4 ). detailed, including a heatmap supported by the boards' analysis and the respective in this report, as well as the forms of miti- Emerging risks, including the country's impact levels. gation adopted. Details about the manage- political scenario and potential regulatory ment processes and the main risks to which changes associated with the transfor- 71 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management It is worth pointing out that risk manage- defense, with roles and responsibilities as- ment is integrated throughout the Com- signed at the different management levels pany, including subsidiaries and controlled of the Company. companies, and follows the three lines of Periodic reports of the risk portfolio and respective mitigation plans are made to Senior Management (quarterly). Administrative Staff Accountability to stakeholders through organizational supervision Roles of administrative entity: integrity, leadership, and transparency Management Internal audit Actions (including managing risks) to Independent assessment achieve organizational targets 1st line of sup- port: 2rd line of sup- port: Provision of ser- Expertise, support, vices to custom- monitoring and ers; managing questions about risks risk-related issues 3rd line of support: Independent and objective assessment and advice on issues related to the achievement of targets E x t e r n a l a s s e s s m e n t p r o v i d e r s The first line is formed by the administrative body (Execu- tive Boards), responsible for accountability to stakeholders as well as organizational oversight through integrity, leader- ship, and transparency. The second line accounts for the activities responsible for actions (including risk management) to achieve the orga- nization's targets through risk-based decision-making and the use of funds. The third line is composed of the internal audit team, which provides independent and objective assessment and advice on issues relating to the achievement of the targets to provide clarity and confidence, and to promote and facil- itate steady improvement through strict investigation and insightful communication. KEY 72 Accountability Delegate, guide, re- sources, provisions Alignment, communication, coordination, collaboration Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process Risk Management Process GRI 2-16 Identifying and responding proactively to company. In Copel's corporate risk manage- ment, analysis and review, and also the events that have the potential to affect ment, this procedure goes through several communication and disclosure of the risks the achievement of strategy and business stages, from its identification, to its assess- and their respective mitigation plans. targets is critical to the sustainability of any Theoretical foundation and culture promotion √ COSO √ Law 13 303/2016 , √ Copel's Articles of Incorporation √ By-laws of the Boards Tools › NPC 0104 – Integrated Corporate Risk Management Policy › Internal Risk Management Standard › Risk Management Methodology › Training and skill-building 73 Risk identification and treatment √ Strategic planning √ New Business and Divestments √ Special projects √ Value chain processes √ Change in policies and standards √ SOD (Segregation of Duties) Matrix Tools › Strategic risks › Process Risk Map › New Business and Divestment Risks Report › Standards Risk Report › Action Plans Monitoring √ Periodic context assessment √ Regular meetings with risk owners √ Assessment of KRIs and KPIs √ SOD risk monitoring Periodic reporting √ Board, Committee, and Advisory Meetings √ Shareholders and markets TCE-PR √ Risk owners Tools › Strategic Risk Revision › Project Performance Assessment › Business Performance Assessment Tools Strategic Risk Report › 20-F Form Reference Form › Integrated Report TCE-PR Orders › Monitoring of Action Plans Monthly SOD Report › Three-Line Model (IIA) Strategic Planning Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process The risk identification is carried out at ties and affect the Company's image and The associated treatment risks and actions different times, such as when creating the reputation. This risk is also related to the must be analyzed and reviewed by the strategic plan, by the business areas at any impact of the environment, in terms of risk manager, on a timely basis, according time, when reviewing internal processes, physical, biodiversity and social issues on to their risk category and exposure level. on demand by the new business area or Copel's operations. in specific situations that arise from top In the reviews, the effectiveness of the risk responses is assessed and possible management and supervisory bodies (Board • Climate – risks related to current and incidents are reported for evaluation and of Directors, Statutory Audit Committee, future climate changes that may affect decision-making to decide if they need to be and Fiscal Council). One of the ways to Company operations, such as the effects reported to the supervisory bodies. identify risk is by observing the achievement of severe weather, dam ruptures, shortage of targets and, based on this observation, of natural resources, etc.: Communication is a large part of Copel's identify what might affect this achievement. governance activities and the company The risks identified and included in a risk · Physical climate risks – the possibility strives to improve the quality of its dialogue portfolio are assessed to understand the of losses caused by events associat- with stakeholders and to support top man- severity of each risk in the achievement of ed with frequent and severe weather agement and the supervisory bodies (Board the strategy and the business objectives. To (acute) or long-term environmental of Directors, Statutory Audit Committee and understand and analyze risk, it is important changes (chronic), which are linked to Fiscal Council) in their duties. Copel prepares to understand the structure of the risk by changes in weather patterns. a Corporate Risk Portfolio segmented by identifying its causes and effects. subsidiary with the purpose of presenting a Copel defines in the Integrated Risk Man- ity of losses caused by events associ- lio is presented quarterly to the Statutory agement Policy, among others, the following ated with the process of transition to a Audit Committee, semi-annually to the risk categories: low-carbon economy, in which the emis- Board of Directors, and upon request to · Transition climate risks - the possibil- consolidated view of the risks. The Portfo- sion of greenhouse gases is reduced or the Fiscal Council. • Socioenvironmental – risks related to the offset and the natural mechanisms for impact of Copel's operations on society, capturing these gases is preserved. the environment, health crises, and may generate regulatory and financial liabili- 74 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process SDG risks The major corporate risks are identified with below showsa few tracked ESG risks that basis on the strategic benchmarks and the are monitored and managed periodically by internal and external environments included the Risk, Compliance and Governance Board in the strategic planning cycle. The table and by the Statutory Audit Committee. Risks Dam safety Directly related policies: Hydrological risk Directly related policies: Cybersecurity Directly related policies: Description Impact model Mitigation actions model Dams are fundamental components of hydroelectric power plants, re- sponsible for 80% of Copel's energy generation. Uncertainties about the amount of rainfall and, consequently, the effluent flow to the reservoirs, have impacts not only on hydroelectric generation capacity but also on the energy prices in the entire system. Data center security breaches due to cyber attacks can disrupt operations and/or cause leaks of confidential corporate information of that of its customers or other stakeholders. Economic, social, regulatory, and environ- mental damage. Potential loss of life in nearby communities. Material adverse effect on the Company's image, business and operating results and financial condition. Preventive action, according to criteria and procedures aligned with the best engineering practices and the law in force. The hydropower plants have a Dam Safety Plan (Plano de Segurança de Barragem - PSB) and an Emergency Action Plan (Plano de Ação de Emergência - PAE). Financial losses. Adverse and materially-affected income from operations. Reservoir Oversight System (Sistema de Monitoramento de Reservatórios - SMR), which tracks in real-time the amount of water available for hydropower generation. Financial losses, loss of productivity of the teams. Legal exposures. Reputational damage. Key: Copel adopts the National Institute of Stan- dards and Technology Cybersecurity Framework (NIST-CSF) as a benchmark for cybersecurity actions. 75 Financial Capital Infrastructure capital Intellectual Capital Social and Relationship Capital Natural Capital Human Capital Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process Dam safety EU21 The dams are important structures to the Operation and Maintenance areas con- Copel's actions are anchored on the National company because they concentrate most of trol the indicator "Number of PAE drills in Policy for Dam Safety (PNSB) and on Resolu- the energy generation capacity. The struc- Plants", established in the Management tion 696 issued by Aneel, which establishes tures built for hydroelectric power plant Contract and whose targets have been fully standards, regulations, monitoring proce- dams have well-established construction met in the last three years. To assess and dures, among other guidelines, for dams standards and safety criteria and that safety validate the procedures provided for in these that require water accumulation for any use, verification is carried out at all stages – de- plans, two internal tabletop exercises were the final or temporary disposal of waste, and sign, construction and operation. However, carried out in 2021. the storage of industrial waste. as in any engineering project of this scale, they pose an intrinsic risk of failure linked to The Emergency Action Plans (PAE) are different internal and external factors. disclosed and delivered for representatives of city governments and Civil Defense In order to mitigate this risk and ensure the coordinators of the municipalities potentially integrity of the dams under its responsibility, affected in the event of a dam failure, as Copel acts preventively by using criteria and well as for state Civil Defense coordinators, procedures that are in alignment with the best in addition to being subject to inspection by engineering practices and current laws. The the Brazilian Electricity Regulatory hydroelectric power plants have a Dam Safety Plan (Plano de Segurança de Barragem - PSB) and an Emergency Action Plan (Plano de Ação de Emergência - PAE), in compliance with legal parameters. The company also maintains an area dedicated to dam safety engineering, whose employees are responsible for the execution of maintenance procedures and the ongoing monitoring of these structures. Agency (Aneel). The goals set out in the Management Contract between Copel and its wholly-owned subsidiaries have been 100% achieved in the past three years. 76 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process Hydrological risk SASB-IF-EU-140a.3 GRI 303-1, 303-2 About 80% of Copel’s generation is hydraulic, Managing Group for the Revitalization of the collecting data on river and reservoir water most of which is derived from the Iguaçu Riv- Iguaçu River (GGRI) , which Copel has joined levels and rainfall data. This information helps er basin located in the states of Paraná and as a guest and collaborates with by offering and guides the operation of the plants. The Santa Catarina in southern Brazil. As such, it data from its hydrological monitoring net- data is available on Copel's Hydrological Mon- is easy to see how strategic it is for Copel to work for the purpose of decision-making. itoring website and on the Brazilian Water properly manage the resource and the risks and Basic Sanitation Agency (ANA) website. posed by changes in rainfall patterns. Copel maintains a Reservoir Oversight Sys- tem (Sistema de Monitoramento de Reser- Additionally, the hydrological situation, the Hydroelectric power generation is character- vatórios - SMR), which tracks in real-time the meteorological conditions, and the results of ized by the non-consumptive use of water in amount of water available for hydroelectric meteorological models that simulate future the process, with the water being returned generation. It also maintains a hydrological conditions of water availability are monitored immediately downstream in the same monitoring network in the watersheds by in real time. quantity and with the same quality. Copel's developments are not located in permanent water stress zones but from 2020 to 2021 the region faced one of the most severe droughts according to the Water Resources Management Unit. The greatest water man- agement risks are associated with extreme hydrological events (floods and water short- age situations). The Iguaçu river regained its volume in 2022, however, the actions created in 2021 to deal with the situation were kept in place for preventive purposes. One of which is the 77 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process The reservoir operation rules are also regis- National Grid relies on hydroelectric, wind, that aims to ensure the quantitative and tered with the Brazilian Electricity Operator thermal and solar power plants as well as qualitative control of water use and the effec- (Operador Nacional do Ssistema - ONS), the interconnected transmission lines to meet tive exercise of the right to access water. The entity responsible for managing the opera- the energy demand in all Brazilian regions. projects are also subject to environmental tion of the National Grid (Sistema Interligado licensing for their effective operation. Nacional - SIN). The risk analyses do not show that there could be any significant change in the short Since the project uses surface water, Copel analyzes cyclical water availability term that could impact the Company. De- despite not being for consumption, the scenarios (historical variations) for energy spite this, Copel takes part in discussions hydroelectric power generation is subject planning purposes, revenue estimates (gen- within the scope of the Technical Water to risks related to changes in average eration from the Energy Reallocation Mecha- Resource and Operation Groups of the monthly rainfall, which may increase the nism, short-term prices) and associated risks. Brazilian Electricity Generation Company average inflow of the power plants operat- Association (ABRAGE). ed by Copel. This type of phenomenon may In the enterprise risk management meth- cause structural changes and require the odology, the possibility of changes in local Copel also has an internal standard that sets structure design and possible operation and regulations is taken into consideration. As rules and responsibilities to regulate multi- maintenance costs to be reviewed, and, in such, Copel actively participates in discus- disciplinary activities (environmental, assets, regard to environmental impacts such as sion forums, such as the Crisis Rooms of the social, etc.) in the geographic area that diffuse pollution, it may lead to the silting Southern Region and Paranapanema and, es- houses the reservoirs, waters and areas sur- of the reservoirs and possible impacts on pecially, in the National and State Councils for rounding the enterprise. Management is the the surrounding communities. Water Resources and the River Basin Com- responsibility of the Institutional Reservoir mittees, where regional matters concerning Management Committee, together with the water resources are discussed. This ensures local committees of each production unit. that issues related to changes in water avail- ability are always in discussion and being duly The hydraulic potential of the power plants tracked and included by Copel. maintained and operated by Copel is also pre- The impact on Copel's pricing structure Resources, an instrument of the Brazilian Wa- and business are minimized because the ter Resources Policy (Federal Law 9433/97) ceded by a Grant for the Right to Use Water 78 Tracks the flow of water available for hydroelectric power generation in real- time Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process On the other hand, the scarcity of rainfall In the project and enterprise scaling stage, may compromise the storage of the reser- the physical characteristics of the instal- voirs of Copel's hydroelectric power plants, lations and equipment are established, as causing a temporary drop in the compa- well as the limits for the use of water re- ny's generation capacity. Considering the sources (engulfment capacity of the gener- priorities for the use of water resources ating units, productivity, spillage capacity). established in Federal Law 9 433/1997, in , The goal is to optimize power generation to the event of water shortage, priority is avoid wasting water resources (unneces- given to the supply of water for human sary spillage). consumption and animal feeding. The availability targets for the generating units Copel also periodically monitors the water are intensity-based and reviewed annually. quality in the region where its reservoirs are located (upstream and downstream), When sizing the spillway structures, energy analyzing physical, chemical and biological dissipation conditions are defined to minimize parameters. It also periodically inspects its impacts on the downstream region of the reservoirs and takes measures to remedy undertakings. In addition, periodic hydrosed- irregularities such as constructions in the imentological monitoring is conducted in the concession area, the discharge of effluents, region of coverage and, occasionally, bathy- use and occupation of Permanent Protec- metric surveys in reservoirs. tion Areas (PPA), illegal hunting and fishing, among other actions. To solve conflicts, The investment in monitoring and forecast- the National Water Resources Law - Law ing actions averages BRL 6.5 million a year. 9433/97, defines that they must be treated at first at the local level by the River Basin Committees, in which Copel is a member. 79 See more about water management and impacts in Natural capital. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process Cybersecurity Pointed out as one of the main contempo- of directors and boards, the Company's action • Recover – new backup policies with re- rary risks in the business environment – and is structured into five functions (NIST model): covery tests, hiring an external consulting classified in the same way by Copel, cy- Identify, Protect, Detect, Respond, and Recov- firm, and a business continuity plan. bersecurity is treated systemically. A cyber er, as detailed below: attack to Copel could lead to serious con- No relevant security breaches were detected sequences affecting the main information • Identify – asset management and critical in Copel's information technology system technology systems with direct reflection asset identification, risk and business in 2022. Likewise, there is no record of any on the business. impact management, and vulnerability leaks or loss of data for the Company. Lastly, management. no fines or penalties were enforced in this re- To protect the integrity of information and gard. GRI 418-1, SASB-IF-EU-550a.1 reestablish the environment when necessary, • Protect – control of access (MFA) and the Company follows the strictest security identities, training and awareness program in Copel has an Information and Cybersecurity protocols, adopting the National Institute cybersecurity involving employees, manag- Policy that establishes the strategic guide- of Standards and Technology Cybersecurity ers, directors and board members, increase lines that must be abided by and applied in Framework (NIST - CSF) as a benchmark for of protection technologies (based also on order to safeguard corporate information the planning and deployment of actions. The advanced technologies for recognition of be- and other information assets through ap- maturity of the technology environment is havior patterns) and reviews of the parame- propriate risk management and support for checked annually by external consultants to terization of the technologies that are already company business. measure the evolution and to create comple- in place at the complex and continuous mentary actions that can be incorporated to review of processes and procedures. Copel also has a Data Protection and Privacy the Continuous Information Security Program. Policy that sets down guidelines for the ac- • Detect – specialized security operation quisition, use and disclosure of information With emphasis on the use of advanced center (SOC) and external threat tracking collected on Copel's websites. The docu- controls and tools, external offensive security services. tests (such as penetration tests), the com- ment is aligned with the Brazilian General Personal Data Protection Law (LGPD). bined actions of its own professional team • Respond - incident response plan and com- with outsourced managed services, and re- munication plan with deployment of assess- 80 current reports about the matter to the board ment routines and effectiveness testing. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Risk Management Process Emerging risks Key: Copel seeks to identify among its main may influence the Company's business. The corporate risks the possible emerging risks following emerging risks were discussed in within a medium and long-term outlook that the last corporate risk portfolio review: Financial Capital Infrastructure capital Intellectual Capital Social and Relationship Capital Natural Capital Human Capital Emerging risks Description Impact model Mitigation actions model Climate change Directly affected capitals: Our operations are subject to uncertainties related to climate factors, notably severe weather events that may cause damage to infrastructure making it unusable. This reduces revenue and raises the cost of reim- bursement to consumers due to power cuts in addition to the cost repair the damaaged networks. Financial loss due to system down- time; reestablishing infrastructure in the event of weather disasters; loss of credibility in the relationships with customers and shareholders. Real-time monitoring of weather conditions; Con- tingency Plan regarding adverse weather events that includes actions and measures that can en- sure readiness and response capacity in the event of severe weather events. Cybersecurity Directly affected capitals: Digital Transformation Directly affected capitals: 81 Security breaches at our data center due to cyber attacks could result in disruption to our operations or leakage of confidential infor- mation of the Company, our customers, third parties or stakeholders, which could lead to financial loss, legal exposure and may harm our reputation.. Financial loss, lower staff productivity, legal exposure, harm to our reputation, and temporary unavailability of essen- tial services or systems. IT Cybersecurity Program that presents risk miti- gation actions in the IT area. Ongoing Cybersecurity Program with a plan deployed to increase the robustness of cyberse- curity in technology operation (TO). Copel adopts the National Institute of Standards and Technology Cybersecurity Framework (NIST - CSF) as a model for cybersecurity actions. . This scenario is linked to the change of control at Copel. The State of Paraná will sell part of its equity interest in Copel's capital stock and cease to be the controlling hare- holder, as per the terms of the secondary public offering of Copel's common shares or units. Lost productivity; rework; increased effort to perform tasks; increased technology-related costs; low digital customer engagement; harm to com- pany reputation/image. Investments in research and development can help mitigate the risks related to transformations in the energy sector and can create new opportu- nities. The Company has a budget for IT infrastruc- ture improvements that is tracked monthly. In ad- dition, the online customer service now accounts for 77.4% of the total amount of tickets. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Risk Management | Action Plan for Socio-environmental Emergencies Action Plan for Socio-environmental Emergencies GRI 2-25 As an instrument to contain and mitigate PAMA aims to meet the requirements of Also noteworthy is the new salvage contract risks of impact on the environment and the stakeholders through the availability of with Ambipar Response S.A. in 2022 to community, Copel GeT has put in place the materials for first emergency response at serve all Copel GeT's undertakings nation- Action Plan for Socio-Environmental Emer- the largest plants and periodically conducts wide, in addition to planning and carrying gencies (PAMA). This plan defines the ac- simulations, maintains emergency response out IMO standard training to annually train tions of the environmental areas in planning contracts, conducts training, and responds 80 workers as First Responders and On and responding to emergencies involving oil to occurrences, such as those resulting from Scene Commander activities. spills, chemical products, floods, traffic ac- excessive rainfall and hydrological alerts at cidents, and others, that affect the projects the Chopim Small Hydroelectric Plant (PCH In both drills and services, all opportunities and areas under the Company's responsibil- Chopim) and at the Governador Pedro Viriato for improvement are mapped and action ity and that may directly affect people, the Parigot de Souza Hydroelectric Plant (UHE plans are drawn up so that actions can be environment and/or the operation. GPS), in 2022. implemented, keeping PAMA and Copel GeT in a process of ongoing improvement for As a part of Copel GeT's contingency plans, Environmental emergency drills were socio-environmental emergency services. PAMA is structured on planning and prepa- planned and carried out in 2022 at SHP ration actions, and post-emergency proce- Pitangui at the transmission substation, at In regard to post-emergency measures, dures. All of Copel GeT's ventures, including the Governador Bento Munhoz da Rocha registration and assessment actions are hydropower plants, substations, power lines Hydroelectric Power Plant (UHE GBM), defined, such as a final report, a critical and wind farms, are covered by the Plan, training sessions with the operation team on analysis meeting, the definition of improve- with the definition of the flowchart and environmental response and IMO (Interna- ment opportunities, and the recording of organization chart, simulations and periodic tional Maritime Organization) standards for occurrence in internal systems. training, as well as other points. oil spill response in soil and water. 82 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Regulatory Environment Regulatory Environment The year of 2022 was marked by a de- Regulatory Ordinance 050/2022: estab- Draft of Ordinance with guidelines and bate about improvements in the electrical lishes that as of January 2024, within the systematics for contracting the genera- power sector, the recovery of water levels scope of the Implementation Committee for tion flow margin: includes the participation after Brazil went through one of the worst the Modernization of the Electricity Sector, of solar, wind, biomass generation or quali- droughts in over 91 years, and the absence Group A consumers may exercise the option fied cogeneration projects, which requested of generation flow margin in the National to purchase electricity from any concession the granting of authorization without pre- Grid (Sistema Interligado Nacional - SIN), operator, license holder or authorized power senting access information, and for other based on the significant number of requests supplier of the SIN. This is an important step projects that do not have a contract for the for the issue of permits for wind and solar towards opening up the free market. use of the transmission and distribution projects. system. The process aims to meet the need Public Inquiry draft of Ordinance to increase the capacity of the transmission In regard to the progress of legislative pro- 137/2022: of the Mining & Energy Ministry system to distribute the electricity gener- posals in the National Congress, the sug- regarding the promotion of the opening of ated by these projects over the next years. gestions to improve the regulatory and legal the free electricity market to consumers The significant rise in authorization permits framework of the electricity sector, Bills of connected at low voltage. was motivated by the end of the period that Law - PL 414/2021 and 1 917/2015 did not , move forward in 2022. Public Inquiry 146: made available three to a tariff discount for the use of the trans- reports regarding the separation of surplus mission systems (TUST) and distribution entitled ventures with subsidized sources Check out some of the main regulatory issues and energy, presenting methodological systems (TUSD). that were under discussion in 2022: proposals regarding the quantification of re- quirements and supply related to production and capacity surplus. 83 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Regulatory Environment This law also established a deadline for the of Law 18/2022, turned into Complementary to 30/Jun/2023. The PAR of the transmission Federal Government to define guidelines Law 194/2022, which considered essential assets of Copel GeT for the 2022/2023 cycle for the implementation of mechanisms to and indispensable goods and services. is now BRL 849.2 million, of which BRL consider environmental benefits, in line with mechanisms to ensure security of supply Generation and competitiveness. The Mining & Ener- 824.2 million corresponds to the PAR of the assets in operation. Considering the ap- proved PAR for the Special Purpose Compa- gy Ministry, in turn, provided the Report In 2022, the Mining & Energy Ministry nies in which Copel GeT has equity, the total "Proposed Guidelines for the Consideration carried out the second review for the guar- consolidated value of the assets is now BRL of Environmental Benefits of the Electricity anteed output of the hydroelectric plants 1,415.2 million, of which BRL 1,387.9 million Sector" to suggest proposals and parame- centrally dispatched in the National Grid, in corresponds to the assets in operation. ters to integrate the environmental benefits accordance with Decree 2 , 655/1998. This of the sector. process covered 120 of the 150 hydropower As established in Ordinance 33 of 17/ plants in the reference configuration and Dec/2021, two Transmission Auctions were PL 1 , 280/2022: approved by National Con- culminated in the publication of Ordinance held in 2022. Aneel's Transmission Auction gress, regulated the return to consumers 709/2022, which reduced about 3.5% of the no. 001/2022 took place on 30/Jun/2022 and of overpaid tax amounts by public service local guaranteed output in relation to the all 13 lots were auctioned off, with a discount providers of electricity distribution, con- first review process. of nearly 60% in one of the lots, an average verted into Federal Law 14385/2022. The aforementioned law addressed the solution Transmission to the liability related to the overpayment of discount of 46.15%, and expected invest- ments of BRL 15.3 billion in transmission. Aneel's Transmission Auction no. 002/2022 PIS and Cofins tax by distributors, determin- On 14/Jul/2022, Aneel, through Resolution took place on 16/Dec/2022, with 6 lots on ing that the refund should occur through the 3067 of 12/Jul/2022, established the adjust- offer. All were auctioned off and in most lots tariff review processes. Congress also ap- ment of the Permitted Annual Revenue (PAR) the discount stood close to 50%. The aver- proved the limitation of ICMS collection on for the electricity transmission assets for the age discount was 38.19% and the projected fuel, electricity, communications, and public 2022-2023 cycle, effective from 01/Jul/2022 investment is BRL 3.5 billion in transmission. transportation, through Complementary Bill 84 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Regulatory Environment Energy Trading According to the schedule established by The tariff adjustment of Copel DIS on 24/ Another factor affecting the tariff was a Ordinance 514/2018, the year of 2023 began Jun/2022 considered the solution reduction in Paraná from 29% (31/Dec/2021) with a drop in the consumer load limit for contracting electricity from any supplier introduced by Law 14 385/2022, which , regulates the ex-clusion of the ICMS goods to 18% (31/Dec/2022), as of June 2022 arising from the approval of the limitation from 1.0 MW to 500 kW to promote the and services tax from the calculation basis on the collection of ICMS on fuel, electric- expansion of the Free Market. of PIS and Cofins contributions amounting ity, communications, and public transport, to BRL 1.6 billion, which reduced the tariff through Supplementary Law 194/2022. Distribution for the period from July 2022 to June 2023. Federal Decree 10 , 939/2022: regulates measures aimed at facing the financial im- pacts resulting from the 2021 water shortage situation. Authorization was given to contract a loan for the creation and management of the Water Shortage Account by the CCEE, aimed at totally or partially covering the costs of the balance of the centralizing account for the funds of the tariff bands for the period of April 2022 and the import of energy referring to July and August 2021. Copel DIS received BRL 145.8 million, fully reverted as a negative financial component, reducing the consumer tariff, in the tariff process of 24/Jun/2022. The payment will be diluted in the consumers' tariffs, in 54 installments, starting in the 2023 tariff adjustment process. 85 The details of the regulatory environment are presented in Copel's 2022 Management Report See more Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Corporate Governance | Regulatory Environment Participation in associations GRI 2-28 Copel is involved in the main organizations Its involvement in the energy sector asso- linked to the sectors of generation, trans- ciations also occurs at the subsidiary level mission, distribution, and trade of electricity through representatives who have expertise to discuss trends and challenges of the in their respective areas. sector, as well as take part in decisions about regulations and bills associated with See here the energy sector associations the energy sector. that Copel Geração e Transmissão and Copel Distribuição participate in and at what level This representation makes the company an in the Social-Environmental and Economic- active participant that can exercise its political Financial Reports of these subsidiaries. influence to uphold the interests of its stake- holders and of society in general. Energy sector associations GRI 2-28 Brazilian Association of Electrical Power Companies (ABCDE) Brazilian Wind Power Association (ABEEÓLICA) Brazilian Association of Electrical Power Distributors (ABRADEE) Brazilian Association of Electrical Power Generation Companies (ABRAGE) Brazilian Association of Clean Energy Generation (ABRACEL) Annual value of contributions (in BRL) BRL 906,662.25 BRL 302,269.85 BRL 232,292.92 BRL 223,950.45 BRL 156,599.08 Brazilian Association of Electrical Power Transmission Companies (ABRATE) BRL 129,500.00 Brazilian Association of Independent Electricity Producers (APINE) Brazilian Mineral Coal Association Brazilian Maintenance and Asset Management Association (ABRAMAN) Brazilian Photovoltaic Solar Power Association (ABSOLAR) BRL 51,765.27 BRL 49,749.00 BRL 32,410.00 No contribution in 2022 86 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes 5 CAPITAL PERFORMANCE 87 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital Natural Capital SDG: Capitals: 7 8 9 11 13 INDIRECTLY Copel's commitment to sustainable devel- Therefore, the management of natural re- opment is intrinsically related to its daily sources is essential for the sustainability of activities. So much so that the company Copel's business, whose main guidelines are: has established corporate guidelines that have been drawn up and disseminated • Promote ecoefficiency in all processes, through policies and rules that cover all its aiming at reducing consumption and areas, including its wholly-owned subsid- encouraging the sustainable use of natural iaries and which encompass actions in resources and ecosystem services. favor of the environment. • Mitigate the negative impacts and en- hance the positive ones in its activities and business. • Make a difference minimizing climate change impacts within the operation and when increasing assets. The next pages will show the main actions adopted in the areas of energy, climate change, biodiversity, water, and waste. The Ecoefficiency Program systematizes its actions to fight energy, water, fuel, and paper waste, in addition to reducing waste. 88 See more All the details regarding environmental management can be found at Copel’s Sustainability Portal Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Ecoefficiency Ecoefficiency Energy and fuel consumption ECOEFFICIENCY GOALS Copel established the Ecoefficiency Program to systematize its actions to reduce energy, water, fuel, and paper waste. Created in 2014, it is composed of a set of possible and accessible actions aimed at preserving the environ- ment with the goal of reducing con- sumption of natural resources, raising awareness among employees and cutting costs. Through a series of targeted actions, the program also aims at disseminating education for sustainability, respect for the environment, and concern for future generations. The replacement of reflec- tive equipment and conventional lamps for LED resulted in a drop of 792 GJ in 2022. GRI 302-4 Topic Objective Electricity GRI 302-4 Reduce 5% of electricity consumption by the end of 2022 (base year 2017). The target was fractioned to 1.25% per year from 2019 to 2022. Base-value = 33,136.87 MWh Status 2022 -26.9% Target achieved Fleet emissions DIS Reuse and recycling Reduce emissions by 2% (base year 2017). The target was fractioned to 0.5% per year from 2019 to 2022. Base-value = 13,172.00 tCO2 Allocate 90% of the waste generated by DIS operations to reuse and recycling. -39.2% Target achieved 90% Target achieved GeT Reuse and recycling Allocate 70% of the industrial waste (class I) generated by GET operations to reuse and recycling. 83% Target achieved ENERGY INTENSITY RATE1 GRI 302-3 741,335.71 GJ 126,18 2022 2021 357,220.29 GJ 55.96 ENERGY CONSUMPTION WITHIN THE COMPANY ENERGY INTENSITY (GJ/EMPLOYEES) 1. The metric used to calculate the energetic intensity was the total energy consump- tion within the organization divided by the amount of employees at the end of the reporting period. 89 Annex - more details about Natural Capital indicators Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Ecoefficiency TOTAL ENERGY CONSUMPTION GRI 302-1 FUELS FROM NON-RENEWABLE SOURCES (GJ) 491.21% 517,132.93 TOTAL (GJ) -107.53% 741,335.71 ELETRIC ENERGY CONSUMED (GJ) 401,027.27 -21.26% 357,220.29 FUELS FROM RENEWABLE SOURCES (GJ) 265,886.34 237,888.98 15.77% 187,316.68 100,205.58 87,470.62 34,935.35 36,886.10 31,860.69 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 90 KEY: 2021 X 2022 VARIATION (%) Note: The values of the GHG emissions of Copel may change after the third-party audit is com- pleted and when the inventory check is concluded, the results and the verification certificate will be published in the Public Emissions Registry of the Brazilian GHG Protocol Program. (GRI 302-2). Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Climate Change Climate Change Copel discloses its climate change practices attributions, which include monitoring and consumption, an improvement of the Smart aligned with the recommendations of the anticipating trends in global sustainability Grid service offer and a boost in the search Task Force on Climate-Related Financial Dis- issues, such as those related to climate for new technologies. closure (TCFD) and the data and information change issues. used to answer CDP's climate questionnaire. The company's Governance, Risk, and Com- Task Force on Climate- related Financial Disclosures (TCFD) Governance Strategic decisions such as approval of pol- pliance Office is responsible for reporting icy updates, commitments, and targets are on the disclosure of guidelines, results, and part of the duties of the Board of Directors proposals for management improvements to – advised by the Sustainable Development the governing bodies. It is also the responsi- Committee, which is actively involved in bility of this board to implement the deci- defining the targets as well as periodically sions approved by the Board of Directors, monitoring performance, and also the In- which is made operational by the Climate vestment and Innovation committee, which Change Committee, which has representa- Recent adjustments to the Company's gov- sets the criteria for selection, assessment, tives from all the wholly-owned subsidiaries ernance model have bolstered the mecha- approval and follow-up of the investments and boards. nisms for monitoring and supporting deci- aligned with the strategic planning. sion-making on climate change, monitored periodically by the Sustainable Development The Board of Directors approved in 2021 the Committee, which advises the Board of Neutrality Plan for GHG emissions of the Directors of the Company. Company with the purpose of neutralizing emissions in Scope 1 by 2030. The plan CDS is a permanent, statutory body, com- led to targets that are linked to the Com- posed of five members, of which three are pany's variable remuneration program, so Copel directors, one of them the CEO, and that all levels are assessed according to the two other members, one of them external. progress of the Neutrality Plan and involve, The appointment has as criteria proof of depending on the sector or subsidiary, a cut education compatible with the full board’s in fossil fuel consumption, electric power 91 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Climate Change Strategy and financial planning Strategy Financial planning In the deployment of the Neutrality Plan since they are located in different geograph- Given that the guidelines of Copel's In- approved by the Board of Directors, the ic regions of Brazil. In practical terms, the vestment Policy state that climate issues Company's strategic planning, which covers study signals that the increased occurrence should be considered in the analysis of op- corporate decisions over a five-year horizon of extreme weather events, such as heavy portunities and that the strategic planning based on Vision 2030, decided that Copel rainfall, heat waves, and prolonged droughts, points to a growth of renewable sources, should have one hundred percent of its en- may impact the generation of electricity from the Company prioritized investments in ergy matrix deriving from renewable sourc- hydropower. The study also shows that there technological development and innova- es, which implies a divestment of high-emis- may be an increase in wind speed in many tion in its financial planning, as well as an sion assets. By potentiating the renewable areas around Brazil in practically every season increase in renewable energy generation aspect, the planning predicts an increase in of the year, requiring special care to be taken ventures, such as wind, solar and hydro- the trade of renewable energy certificates. with transmission and distribution assets. electric plants. The strategic planning reviews and defini- In addition, critical climate events have The trend to use energy from renewable tions were based on the study conducted by occurred in the past few years, encourag- sources is also observed in customers, who the Mining & Energy Ministry, which contains ing the company to step up research into are looking for solutions that can reduce future climate scenarios for the Brazilian future climate scenarios arising from glob- Greenhouse Gas (GHG) emissions through electricity system (forecast up to 2100), pos- al warming in its hydraulic generation (until the use of renewable energy or the acquisi- sible carbon pricing and the development of 2100) and distribution assets (until 2050). tion of I-REC to reduce Scope 2 emissions. climate change adaptation studies. The study revealed that extreme weather situ- ations may become more frequent in upcom- ing years in Brazil so this was considered in the risk analysis of the Company's businesses 92 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Climate Change Climate risks and opportunities GRI 201-2 RISKS The risks were identified for the operation and can be divided into short, medium and long term. The major corporate risks are identified on the basis of the strategic benchmarks and the internal and external environments in a detailed Risk Management process (see more on page 75 of this report). Risk man- agement incorporates climate change in its analyses and, in 2022, improved its analysis mechanisms by separating this topic from socio-environmental risks. A few of the climate change-related risks are shown below. In the short term, acute physical risk has been identified in regard to the possibility of cyclones and hurricanes, which may cause damage in both transmission and distribution. This type of phenomenon was observed in 2019 by Copel Distribu ição when 3 lines were interrupted due to damage to structures caused by winds of over 70 km/h in the western region of the state of Paraná. In transmission, a similar phenomenon occurred in 2015 when the company struggled to reconnect two transmission lines in the north of the state. The last major event occurred in 2020 when winds knocked down high voltage lines causing a blackout. These events are deemed probable in upcoming years and their magnitude is medium-low making them able to impact indirect - operational costs. To minimize the impacts, Copel has been using contingency support struc- tures and meteorological monitoring and is placing employees on call so the system can be promptly reestablished In the medium term, chronic physical risk may arise from hydrological variability, given that the volume of rainfall in hydro- graphic basins where the company has hydraulic projects may drop and shrink the volume of water stored in the reservoirs. In financial terms the risk is diminished because the Company participates in the Energy Allocation Mechanism aimed at the sharing of hydrological risks. In addition, the company has invested in hydro-climatological monitoring to provide reliable data in its area of operation so it can collect the maximum amount of information to subsidize project reviews and interventions that may be needed. The risk of such a phenomenon occurring is considered likely but the drop in revenue is minor. In the long-term, acute physical risk has been identified as possible on the basis of flooding, which may impact some of the Company's assets. In 2014, Copel was impacted by an extreme rainfall event in the Iguaçu River basin requiring additional costs for recovery of the small hydroelectric plant on the Cavernoso River and in 2016 the small hydroelectric plant located on the Apucaraninha River incurred a loss of BRL 2 million due to damage to its facilities. In order to mitigate the risk, Copel maintains a hydro-climatological monitoring network with an uninterrupted weather forecast service for regions where it has hydroelectric generation and this helps predict actions and keeps the team ready to ensure the safety of the operation The investment involved in monitoring accounts for around BRL 6.5 million/year. The decline in asset values as a result of flooding is seen as very unlikely but if it does happen, it will be of medium-high magnitude. See more See page 75 for more details about the risk management process. 93 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Climate Change OPPORTUNITIES Opportunities may be present in the operation as well as in customer service. In the short term, with regard to customers, it is very likely that the demand for renewable energy and renewable energy certificates will increase causing a medium impact on revenue. Copel Mercado Livre believes that companies that have sustainability goals and that report their emissions are more likely to offer this product. In the short term, it is very probable that operations will expand with an average possibility of increasing revenues from new ventures target- ed at wind power generation, as can be seen with the implementation of the Wind Farms Jandaíra I, II, III and IV, totaling 90 MW installed in the State of Rio Grande do Norte and in the Company's strategic planning. In addition to wind farms, the Company is gradually stepping up its investments in solar power generation, not so much in the sense that it currently represents a significant portion of the Company's rev- enues but in the diversification of financial assets. During the develop- ment of wind power projects, studies were conducted for the use of the other areas of the complexes, which indicated the potential for the implementation of solar power plants. In the medium term, there are two fronts, one for the development of climate adaptation solutions, as is the case of the Paraná Trifásico program, which will allow greater energy efficiency for the customer and a decrease in energy loss during distribution, with the construc- tion of 25,000 km of lines by 2025. From the standpoint of improving the efficiency of energy distribution, smart meters are planned to be installed in the homes of up to 30% of the 5 million customers by 2024, enabling greater control for customers to manage their consumption. In addition, automation reduces the need for workers to venture in field to identify faults during blackouts, enabling a drop in GHG emissions and indirect operational costs due to the modernization of the system. Targets and actions To make it possible to reach the commitment • Fugitive emissions - study to improve established in 2021 by the Carbon Neutral equipment efficiency Plan, the Board of Directors approved indica- tors and targets to be met by the company • Land use change - assessment of offset- by 2030. The goals were defined considering ting formats the core businesses, as well as their process interconnection, besides being guided by the • Electricity Consumption Study and Imple- precepts of SBTi (Science-Based Targets), mentation of energy efficiency in facilities which define the practices to be adopted for and use of renewable energy certificate companies engaged with Net Zero commit- ments. The indicators were defined consid- • Analysis of offsetting alternatives ering short, medium and long term goals and are related to: • Suppliers - monitoring of emissions of critical suppliers and motivation for the • Stationary Combustion - divestment of creation of a GHG inventory and emission thermal power plants reduction • Mobile Combustion - gradual replacement of the fleet with light electric vehicles Indicator Unit Year base 2023 2025 2030 Installed capacity from renewable sources Scope reduction 1 Electrical fleets % % % - 2017: 213,947 tCO2 - 95 20 15 100 100 50 30 --- 50 94 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Climate Change GREENHOUSE GAS EMISSIONS IN 2022 (tCO2e) GRI 305-1, 305-2, 305-3, SASB-IF-EU-110a.2 COMPARISON OF EMISSIONS (tCO2e) GRI 305-1, 305-2, 305-3 Scope 11 Scope 22 Scope 33 SCOPE 1 50,083.44 Greenhouse gas emis- sions Total emissions Biogenic emissions 50,083.44 163,700.83 28,816.86 8,143.41 - 2,931.19 1. The gases included in the calculation are CO2, CH4, N2O, HFCs, SF6. 2. The gases included in the calculation are CO2. 3. The gases included in the calculation are CO2, CH4, N2O 15,583.53 2021 2022 PROFILE OF EMISSIONS (tCO2e) SCOPE 2 451,356.92 28,816.86 50,834.44 SCOPE 1 SCOPE 2 SCOPE 3 163,700.83 2021 2022 163,700.83 Emissions intensity GRI 305-4 Emission Scope 1/employee (tCO2e/employee) Emission Scope 1/revenue (tCO2e/million BRL) 95 8.65 3 2 . 2 SCOPE 3 17,667.85 28,816.86 2021 2022 Note: Copel's greenhouse gas emission figures may change after the end of the audit, and will be registered and published in the Public Emissions Record of the GHG Protocol Program. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Biodiversity Biodiversity GRI 304-2 Copel's assets are located in different re- and flora in the area where the project will be actions, minimizing the need to suppress gions of the country within various Brazilian located, which is often very little scientifically vegetation. biomes, such as the Atlantic Forest, the explored. For this reason, these studies have Cerrado region, the Amazon and the Caatin- in many cases been an important source of It is important to point out that power ga region. The Company, therefore, puts in data for the academic and scientific commu- generation, transmission, and distribution place actions to minimize and offset the im- nity and are used to track the occurrence of projects also have a positive impact on pacts caused by its activities in the various new species and share information about the biodiversity and are generally permanent ecosystems where it is located. distribution of little-studied species. Based and ensure greater protection to natural en- on the reports, environmental programs and vironments. An example of this is to work The most significant impacts on biodiversity measures are deployed to prevent impacts, being done for reproduction in the captivity are seen in changes to the environments reduce their intensity or offset them. of the Surubim-do-Iguaçu (Steindachner- where the implementation and operation of idion melanodermatum), an endemic and power generation, transmission and distri- Technological advances and investments endangered fish species, and the monitor- bution projects take place, and these may in transmission and distribution networks ing of the sagui-da-serra-escuro marmoset include vegetation suppression with the also mitigate the risks to biodiversity. In the (Callithrix aurita) and the Muriqui-do-sul potential for a reduction or migration of plant Paraná Trifásico Program aimed at modern- spider monkey (Brachyteles arachnoides), and animal species, changes in connectivity izing rural networks, substations are being primate species that are both included in between remnants of native vegetation or modified, transferred to the borders of roads the National Action Plans for Conservation alterations in the breakdown and dynamics and highways, and drones are being used of ICMBio (see more here). of aquatic communities in the case of hydro- for maintenance activities, among other electric installations, as well as other risks. To map these impacts, environmental studies are carried out in the various stages of envi- ronmental licensing and they include spec- ifying and monitoring changes in the fauna 96 assets located in various Brazilian biomes, such as Mata Atlântica, Cerrado, Amazon and Caatinga regions impact mapping has contributed with data for academic and scientific studies Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Biodiversity Copel's actions on behalf of biodiversity NUMBER OF SPECIES BY THREAT LEVEL1 GRI 304-4 GRI 304-4 include: • Protection and/or recovery of the areas earmarked to offset the plant suppressions needed to implement the projects • Restoration of Permanent Preservation Areas • Special care with plant and animal species considered rare and endangered, carrying out rescues and relocating animals when necessary • Collection and allocation of seeds for research and seedling production to ensure the maintenance of regional biodiversity and the genetic variability of endemic species in the vegetation; • Monitoring the animal and plant communities to check for any possible impacts and offset them whenever necessary. Threat status (level of endangerment) Total number of species Critically endangered Endangered Vulnerable Almost endangered Not concerning Total 14 63 115 82 901 1,175 1. The UCN Red List 2022 and the 2022 lists of the Environment Ministry and of the state, by level of extinction risk. Protected or restored areas Forest offsetting projects: 292ha Permanent preservation areas: 9,753.72ha Own areas intended for environmental conservation: 10,382.66ha Areas constituted as (or in the process of becoming) Conservation Units: 3,976.11ha See more 97 Go to the Sustainability Portal to learn more about the activi- ties and actions on behalf of Biodiversity undertaken by Copel Annex See more details about natural biodiversity indicators Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Biodiversity Practices in the generation busi- ness GRI 304-2 All Copel projects undergo environmental li- based on a study conducted by the Center variety of fish to traverse it, ensuring a gene censing, during which Environmental Impact for Research in Limnology, Ichthyology and flow between populations downstream Studies and their respective Environmental Aquaculture (Nupelia) of State University of and upstream of the dam. To date, 84 fish Impact Reports (EIA/Rima) or Simplified Maringá (UEM), described in 2008. Today it species (50 of them migratory) have been Environmental Reports (RAS) are drawn up, is an endemic species of Iguaçu river basin recorded in the system through daily mon- depending on their size. These studies iden- restricted to the Jordão river sub-basin itoring of the ladder display, in addition to tify if the impacts are positive or negative and is threatened with extinction. It is the periodic scientific collection and telemetry and take into consideration: spatialization target of the National Action Plan for the monitoring, This practice records the move- (affected areas); the phase of occurrence in Conservation of Aquatic and Semi-aquatic ment of the fish through the ladder. The flow regard to the work; the incidence, if direct Fauna of the Lower Iguaçu River Basin (PAN is significant: during periods of lower river or indirect; the permanence (immediate, Baixo Iguaçu). Fish communities from 18 flow, about 428 fish access the structure medium or long term); durability (temporary reservoirs under Copel GeT's concession per day. In the flood season, the average is or permanent) and reversibility. are monitored and subsidies have been ten times higher: about 4,280 fish use the provided to ensure conservation actions FTS daily. The FTS has been very efficient in Monitoring of Ichthyofauna – the program are implemented, such as the reproduction attracting and relocating fish. aims at continuously monitoring the fish and repopulation activities carried out at the species in bodies of water linked to proj- Experimental Studies in Ichthlogy Station ects under Copel's concession, generating (EEEI). Learn more about the monitoring at scientific information and guidance for Sustainability Portal management actions and meeting environ- mental conditions. From the scientific point Fish Transposition System of the Colíder of view, the main benefit lies in recording HPP – the plant, located in Mato Grosso, the biology and ecology of Paraná's fish has a Fish Transposition System (FTS) in the species. New, endemic and threatened fis form of a Vertical Slot ladder– the largest spicies have been recorded in the Iguaçu riv- of its kind in Brazil that extends about 693 er basin, such as fish Trichomicterus igoby, meters. The FTS is designed to allow a wide 98 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Biodiversity Distribution business practices GRI 304-2 In the operation stage of the projects, two to understand how the use of integrated environmental licensing conditions. Around actions by Copel Distribuição stand out: vegetation management in the opening of 80,000 seedlings have been planted in urban • Integrated Vegetation Management etation in these areas, as well as evaluate implemented. In 2022, 5,750 seedlings were (IVM) in electrical systems – the main- how this change will affect the number supplied to 17 municipalities. passage lanes affects the recovery of veg- afforestation projects since this program was tenance of the security strip in the oper- of interventions and cost for opening ation of distribution lines is carried out by and maintenance. The environmental and Another important action is that Copel DIS means of manual or mechanical clearing. external impacts of this methodology in has joined the Inter-institutional Work Com- However, these techniques cause habi- comparison with the one used currently is mittee for the assessment of Municipal tat fragmentation, soil erosion and favor under analysis. invasive exotic species. As a replacement, Urban Afforestation Plans coordinated by the Public Prosecutor's Office for the State actions are underway to implement Inte- • Urban Forests program – Copel DIS has of Paraná (MP-PR). grated Vegetation Management. IVM is a traditionally supported city governments in set of practices that aims to establish, in plans to plant trees on public roads in order the long term, a plant community whose to improve city environments and reduce growth characteristics do not interfere power disruptions caused by tree branches with the operational performance of elec- tripping the electrical system. One of the trical installations or that require minimal actions of this program is the production intervention while also providing soil pro- of seedlings, through a partnership with tection, shelter and food for the animals, Copel GeT, currently carried out at the Hor- as well as other benefits. The Research to Florestal das Cabreúvas (Governor Ney and Development (R&D Aneel) project Aminthas de Barros Braga Hydroelectric 80,000 seedlings planted for urban afforestation “Integrated management of vegetation in Power Plant, Iguaçu Reserve - PR). the opening of a passage lane in high and medium voltage distribution lines” is un- In addition to helping out interested mu- der development and its primary focus is nicipalities, it enables compliance with 99 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Biodiversity Restored biodiversity GRI 2-25, EU13 The sites that home the offsetting plants Copel GeT currently has 13 ventures with nent Preservation Areas of Copel GeT’s are submitted to the environmental agen- offsetting projects under development, of projects ensure the data of the recov- cy in charge of the environmental licensing which two were kicked off in 2022. The proj- ered or revitalized areas is up to date. for approval. In all cases, the recovery ects are related to the following enterprises: actions are tracked by Copel professionals In the PPA of the HPP Colíder reservoir and the monitoring confirms the resto- • TL 500 kV Araraquara II - Taubaté located in the State of Mato Grosso (MT), ration of the area. • SS Taubaté several actions were deployed to implement • LT 230 kV Andirá Leste Seccionamentos the PPA during the implementation of the Indicators such as ground cover with 1 and 2; project. One such action was the planting of native vegetation, density of regenerating • TL 500 kV Assis - Londrina approximately 290,000 seedlings of native native plants and number of regenerat- • TL 230 kV Assis - Paraguaçu Paulista 2 tree species in 172 hectares and direct sow- ing native species are tracked. When the • TL 230 kV Baixo Iguaçu - Realeza Sul ing in about 50 hectares. A few restoration restoration indicators are reached, the • TL 230 kV SECC Cascavel Oeste - Foz do centers were also set up. areas are then simply monitored or their Iguaçu Norte management may be transferred to the • TL 500 kV Blumenau - Curitiba Leste The implementation also included the place- environmental agencies or entities. • TL 525 kV Substation Foz do Iguaçu ment of more than 97,000 meters of fences The management plans to oversee resto- • Wind Farms Cutia and Bento Miguel cattle and the consequent start of the natu- ration, forest offsetting, riparian forests and • SHP Bela Vista and HVDL 138 kV Bela ral regeneration process. Furnas - Cascavel Oeste around the APP, providing isolation for the biodiversity are management instruments Vista do Chopim - Dois Vizinhos that help anchor the improvement actions • Jandaíra Wind Farm Complex Copel DIS, in turn, opened a public tender that need to be put in place as well as the • LT 230 kV SE Jandaíra - SE João Câmara 3. in 2022 and acquired 117.4723 hectares of creation of efficiency indicators for the man- land in Mallet (PR) to carry out reforestation agement processes of protected or restored The monitoring and mapping activities projects and meet the conditions for Man- areas, as well as their existing biodiversity. carried out on the Paraná-based Perma- datory Forest Replacement and Atlantic Forest Offsetting. 100 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Water One of the requirements for the definition of The company operates 26 hydropower plants users, and communities and in situations of the area was its location in the Iguaçu River located in the basins of the Iguaçu, Tibagi, drought, the priority use of water resources Basin Unit and the fact that it had native Alto Ribeira, and Atlântico Sudeste and Teles is for human and animal consumption. Atlantic Forest coverage. The land will be rivers. For the water to pass through the used as a seedling bank, aggregating the turbines, dams are built to dam the river, Copel actively participates in the manage- many conditioning factors of the enterprises forming water reservoirs. The most signifi- ment of water resources in its different installed in the region into a single location. cant impacts of water use are related to the environments, such as the national and state transformation of the lotic environment (river) councils and the basin committees. The The forecast for 2023 is to hire a team to into a lentic environment (reservoir), such as internal management is carried out by Copel analyze the land use zoning and the creation increased transparency and sedimentation of GeT's division and the help of a network of of forest offsetting projects to be submitted solid particles due to the decrease in water more than 60 hydrometric stations that mea- to the Instituto Água e Terra (IAT), selecting velocity. Currently, 80% of the energy gen- sure the water level (in rivers and reservoirs) areas within the land to be linked to the con- erated by Copel is hydraulic, and its power and more than 100 that measure rainfall, in ditions of each project. plants are located in Paraná (20) and Mato addition to monitoring the water stored in the Water Water withdrawal GRI 303-1, SASB-IF-EU-140a.1 Grosso (1). reservoirs. Copel also has emergency action plans in place for the dams with preventive The management of the resource is, there- and remedial procedures, strategy and chan- fore, fundamental to the management of the nels to warn the communities affected. Company's business, especially within the context of water shortage. The representa- The hydroelectric projects have a license, The greater volume of water used by Copel tion of different interests on water uses is im- which indicates the volume of water to be is used for generating energy. It is important portant to prevent conflicts and ensure water used for power generation, the water level to point out that the generation process does availability for multiple uses for present and to be maintained in the reservoir, the flows not consume water because the resource future generations. According to the National to be withdrawn by other users upstream used returns with the same quality and quan- Water Resources Policy, the management of the reservoir and other conditions. tity to the body of water, in accordance with of water resources must be decentralized the local laws. with the participation of the government, 101 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Water In distribution, most of the water consumed is used for administrative activities and derives from public water supplies. In its administrative activities in general, Copel uses water from the public supply network and, in some places, from underground col- lection. This data is monitored monthly and tracked by the EcoEfficiency Program. TOTAL WATER COLLECTED (ML)1 113,307.09 109,287.81 94,929.82 2020 2021 2022 1. Metric in megaliters (ML). Water collection (ML)1 GRI 303-3 Surface water Underground water2 Outsourced water2 Total water collected 2020 2021 2022 113,167.91 109,152.10 94,805.31 21.73 117.46 40.42 95.29 39.85 84.66 113,307.09 109,287.81 94,929.82 1. None of the collections mentioned derive from water-stressed areas. 2. The collection of groundwater and outsourced water is measured by hydrometers. In real time The results of the hydraulic operation of every enterprise can be found in the website. After the monitoring has been carried out, Copel offers relevant information to the community surrounding its hydroelectric power projects. Water consumption (ML)1 GRI 303-5 Total water collected Total water discarded Total water consumption 1. Metric in megaliters (ML). 2022 94,929.82 94,904.92 24.90 102 See more Go to the Sustainability Portal to learn about Copel's activities and actions for the efficient use of water resources and the protection of springs Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Water Water disposal GRI 303-2, 303-4 In Copel's processes, the effluents arising which follows the guidelines of the Standard from production or administrative processes Methods for the Examination of Water and are sent to the sewage collecting system, Wastewater - 23rd edition 2017 and in com- when such is available in the location, or pliance with the requirements of the Opera- septic tanks, drains, and infiltration ditches. tion Licenses of the projects and as defined Water GRI 303-4 discharge (ML)¹ Surface water Underground water Outsourced water Total 2021 2022 109,152.10 94,805.31 33.02 76.95 31.88 67.73 109,262.07 94,904.92 1. Metric in megaliters (ML). 2. Refers to sanitary effluents (equivalent to residential effluents) arising from the administrative process of the company. Their disposal is in accordance with the parameters recommended in CONAMA 430/2011. In all cases, they undergo the necessary in CONAMA Resolution 430/2011. treatments in compliance with the technical, legal, and environmental licensing require- The effluents from the Thermoelectric Power ments of the assets. Plants come exclusively from the Figueira plant, which is being upgraded and has been Specifically in large hydroelectric power out of operation since 2018. The plant test- plants and in some SHPs (Small Hydropow- ing started up in 2022. er Plants) and HGCs (Hydropower Genera- tion Center), where the installation of drains In distribution, the operation of substations, and/or infiltration ditches is not feasible, high-voltage lines, and power grids do not the sanitary effluents are disposed of in the have activities that periodically generate water body downstream from the project effluents. The water and oil separator boxes after being treated. These flows are very low in substations are inspected to check for oil compared to the river flow, so the polluting spills from equipment. potential of these discharges is practically null, considering the dissolution that takes place after their release. The generation projects also have their effluents continuously monitored through the Management Plan of the Subprogram to Monitor Sanitary and Industrial Effluents, The effluents undergo the necessary treatments in compliance with the technical, legal, and environmental licensing requirements of the assets. 103 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Natural Capital | Waste Management Waste Management GRI 306-1, 306-2 Distribution, generation, and transmission ing risk involved in transporting the waste project, the contractor must present the activities do not depend directly on the con- to the final destinations, such as traffic final management report and the supporting sumption of inputs, however, the operation accidents, cargo leakage and/or contam- documentation for the Plan. and maintenance of the equipment gener- ination. To this end, the company has a ates waste in a secondary way. The man- Manual for the Transport of Hazardous The volume of waste generated in 2022 was agement is done to avoid that this waste Substances, and the work safety area is 8,321.72 tons, of which 1,194.55 t of Class I causes adverse impacts, such as soil and active in providing guidance and require- materials (hazardous) and 7,127.18 t of Class groundwater contamination. ments to contractors. When transporting II (non-hazardous). This represents a drop of hazardous waste, the contractor must 86% in relation to the waste generated in The maintenance activities of plants and present its Emergency Action Plan (EAP) 2021. GRI 306-3 substations generate class I waste - hazard- and comply with other requirements. ous, most of which are intended for co-pro- cessing in clinker production furnaces in Copel donates recyclable waste generated in the cement industry. However, some waste administrative activities to co-ops and associ- from construction maintenance activities or ations of recyclable material collectors, as from the demobilization and maintenance of per State Decree 8 426/2017. It also has a , electrical equipment (with specific character- process for allocating waste that can still be istics) do not allow for any alternative other used and has an added economic value, via Annex than final disposal through industrial landfills auctions, and that can return to the See more details about waste indicators or incineration. productive chains through recycling. The company has a Solid Waste Manage- In the case of construction work, the ment Subprogram and several in-house contractor must prepare a Construction instruments aligned to the National Solid Waste Management Plan that is submitted Waste Policy. Part of this scope is minimiz- to Copel for approval. At the end of the Copel donates recyclable waste generated in administrative activities to co-ops and associations of recyclable material collectors. 104 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Responsibility to Stakeholders Social and Relationship Capital SDG Capitals 4 7 8 9 11 Responsibility to Stakeholders GRI 2-29, EU19 The guidelines set forth in the Sustainability and Corporate Governance Policies underscore the importance of dialogue and transparency, uphold Human Rights, respect for people, and others. impact and influence - impacted, strongly sector agents, etc. The participants may also impacted, impacting, and value-focused (see include trade unions, community associ- the illustration on the next page). ations, social movements, NGOs, among Copel is committed to its stakeholders and other organized civil society movements. The implements actions that ensure the bal- Moreover, stakeholders are called upon to participants may also include trade unions, ance of environmental, economic and social take part and share their opinions at different community associations, social movements, relations. The company defines its actions stages of the implementation or operation NGOs, among other organized civil society through the guidelines set forth in the Sus- process of energy projects. In the case of the movements. tainability and Corporate Governance Policies, construction of new power plants or other which underscore the importance of dialogue structures, the community involved is con- Copel has developed a specific approach and transparency, uphold Human Rights, re- sulted directly in public hearings and, indirect- for every stakeholder (see box below), spect for people, accessibility and inclusion, ly, throughout the environmental licensing as well as offers Dialogue Channels and as well as sustainable development. process. Several agencies and entities partic- has made available an independent whis- ipate in the processes, such as the Brazilian tleblowing channel. The company has mapped the audiences, Institute of Environment and Natural Resourc- based on the AA1000 methodology, to es (Ibama), the Chico Mendes Institute for identify its stakeholders. This survey resulted Biodiversity Conservation (ICMbio), the Insti- in the following priority audiences: sharehold- tute of National Artistic and Historical Heri- More Transparency ers, customers, communities, competitors, tage (Iphan), the National Indigenous People Copel's Sustainability Portal describes in detail the practices employees and suppliers - and includes the Foundation (Funai), regulatory agencies, city adopted by Copel for sustainable development 105 environment topic, considering the level of governments, environmental departments, Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Responsibility to Stakeholders Mapping our stakeholders* All those who influence and/or are influenced by the Company Impacting agents Value-focused agents ($) NGOs Media Regulatory Bodies Government Suppliers Environment Outsourced Future generations Highly impacted agents Employees Community Competitors Shareholders Customers Partners Retirees Impacted agents 106 *The audiences were represented in the shaded areas accord- ing to their level of relationship with Copel. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Responsibility to Stakeholders ENGAGEMENT CHANNELS GRI 2-29 Stakeholder Activity generating value and returns Shareholders and Investors provide energy at affordable prices, error- free billing, and swift and quality service, in addition to minimizing impacts on the communities Customers Society partnerships and involvement in sector associations for mutual strengthening development, remuneration in accordance with the market and equity in shares Regulatory Bodies and Sector Entities Employees communication channel and confidential channel for reporting Partners and Suppliers 107 Shareholders and investors are responsible for providing Copel with part of the funds it needs to carry out its activities with excellence and stability. In return, it must dedicate itself to generating value and returns for this audience. The relationship takes place mostly through the Investor Rela- tions area, which has its own corporate policy. IR Website Copel seeks to meet the main expectations of this audience: to provide energy with low prices, error-free billing, and swift, quality service, as well as favorable conditions for engagement. A series of online and in-person channels have been set up for this purpose. The manifestations, complaints, and grievances registered are essential for mapping opportunities to improve ser- vices. Customer Website For each new enterprise, studies of the socioeconomic environment are conducted as part of the licensing process, with a frequency that varies according to the complexity of the project. The results are the basis for socio-environmental programs, which aim to mitigate and offset possible adverse impacts, as well as raise awareness in the surrounding communities. The businesses have areas dedicated to the relationship with the impacted communities. email rsustentabilidade@copel.com The Company has areas dedicated to the relationship with regulatory agencies and sector entities with the purpose of always being in regulatory compliance and, also, to defend its position in relation to the changes in the electric sector. The company uses different communication channels to strengthen its relationship with its em- ployees, such as the People Portal on intranet and periodic emails. In addition, it annually conducts the organizational climate survey Great Place to Work (GPTW) and takes part in the negotiations ) coordinated by the company's human resources of the Collective Bargaining Agreement ( area. Copel maintains a constant relationship with its suppliers (including potential suppliers) through supply management areas, as well as with the managers of each contract. In addition to direct channels with buyers and managers, Copel provides dedicated channels such as: Website for suppliers and partners Confidential Communication Channel: 0800 643 5665; and the Sustainability Portal (link: https://copelsustentabilidade.com/governanca/cadeia-de-valor/gestao- da-cadeia-de-suprimentos/). CBA Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers Customers As a provider of an essential service for As for complaints, the company maintains a Complaint Duration (Duração Equivalente de communities and the economy, Copel strives rate of 0.01% per service performed, solving Reclamação - DER) and Equivalent Complaint to continuously improve its services to meet all of them (see charts on next pages). Frequency (Frequência Equivalente de Re- the needs of its consumers and customers. clamação - FER) for every thousand consum- Copel also oversees the complaint handling er units. The performance of these indicators This quality assurance is systematically indicators required by Aneel, the Equivalent has remained stable in recent years. monitored and assessed by a series of indi- cators, both proprietary and regulatory. Copel conducts surveys with residential, industrial, rural, and government customers to gauge customer satisfaction and perception. Specif- DISTRIBUTION CUSTOMER PROFILE ically for residential customers, there are two annual editions - one coordinated by Abradee, applied in the first half of the year, and anoth- Consumer units GRI EU3, SASB-IF-EU-000.A Residential Industrial er by Aneel, in the second half. The results of Institutional (power and public service) these surveys are handled by the Permanent Commercial Customer Satisfaction Committee. Other classes (rural, its own consumption, etc.) Total number of consumer units Through Copel Distribuição, more than 50 million consumers were served by Copel Distribuição, most of them virtually, after 2022 4,131,039 69,811 45,978 431,818 341,882 5,020,528 the company created a free app, an online Assessment of consumer perception agency, and a WhatsApp number that re- Abradee Satisfaction Survey - Residential Customer ceives the most recurring requests, such as Abradee Satisfaction Survey - Group A Customer debt checks, a second copy of the electric- ity bill, reconnections, and the sending of Cier Customer Satisfaction Survey 2020 84.4% 80.9% Silver 2021 78.7% 82.0% Bronze 2022 77.0% 81.3% Silver meter readings. 108 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers Consumer services The COVID-19 pandemic period caused many changes in consumer habits and consolidated new services and more agile and virtual customer care. With the introduction of new online services, such as the totally remodeled WhatsApp service, new ser- vices in the Copel app, and automations for various digital forms, 2022 closed with 85.35% of services provided through digital channels. Even so, face-to- face contact was fully reestablished in 2022, available for the most varied demands of the more than 5 million consumers. WhatsApp offers the most common services, such as debt checks, a second copy of the electricity bill, re- connection, and the sending of meter readings. There is also a virtual branch on the site, the Call Center (0800-51 00 116), and 400 face-to-face service sta- CUSTOMER COMPLAINTS SENT IN 2022 COMPLAINT HANDLING To the company 31,875 To Aneel 1,614 To Procon 2,298 To Justice 7,399 2022 2021 2020 EDC (EQUIVALENT DURATION OF COMPLAINT) (HOURS) 151.03 120.50 105.73 EFC (EQUIVALENT FREQUENCY OF COMPLAINT) (UNITS) 5.76 6.36 5.32 CUSTOMER SERVICE BY TYPE 18.1% 4.5% ONLINE SERVICE ONSITE ASSISTANCE 77.4% TELEPHONE SERVICE tions. 288 of the total are units of the Copel com Você Resolved complaints (Copel and You) program, created in partnership with Received complaints local commercial establishments to provide support in small cities. Complaints deemed to have merit in relation to the total number of complaints received Complaints solved in relation to the number of valid complaints 2022 91,145 31,875 31,875 109 Note: All complaints are solved within 30 days. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers Communication actions Copel DIS permanently maintains publicity regarding the safe and efficient use of elec- RADIO AND TV campaigns for customers and the com- tricity. Such topics represent almost 60% munity about the safe and efficient use of of the airtime provided by the agreement. electricity and the content also includes These channels also broadcast information information about citizenship and care for on access to services, in addition to con- More than 1 million messages aired. 59.6% of the content includes the responsible use of energy and topics related to sustainability the environment. sumer rights. The year of 2022 marked many *Via an agreement with the Paraná Broadcasting Association Radio stations, the company website and and universities and social and educational SOCIAL NETWORKS important partnerships between Copel DIS YouTube videos were the most used modes institutions for the creation of workshops, of communication used by the company in training, support actions, and guidance for 2002. Copel DIS also maintains a corporate the different stakeholders. YouTube LinkedIn profile on Linkedin, Twitter, Facebook, and Instagram. Numerous actions were also implemented in the communities, such as workshops and PODCASTS Copel has an agreement with the Associa- training sessions held both for company tion of Broadcasters of Paraná, made up of employees (own workforce and outsourced 300 affiliates, that includes the broad-cast of workers) and for the external audience (com- daily information. Each station broad-casts munities, social and educational institutions), 11 30-second corporate messages a day, covering topics such as human rights, diver- except on Sundays, which totals about one sity, environment, child labor, health, and million messages aired per year, mainly Sustainable Development Goals (SDGs). Sustainability Energy presents each of the SDGs prioritized by the Brazilian electricity sector GDCast focused on innovation and distributed generation All the content is available on the most accessed audio providers in Brazil as well as on Copel channels. 110 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers Residential disconnections RESIDENTIAL DISCONNECTIONS GRI EU27 GRI EU27, SASB-IF-EU-240a.3 Shut-off services for lack of payment Residential disconnections due to default 2021 2022 increased in 2022 compared to 2021, Less than 48 hours 354,423 469,590 when disconnections were held off due to From 48 hours to a week the COVID-19 pandemic. The suspension From a week to a month process is carried out automatically by the From a month to a year commercial management system of the More than a year 39,457 58,257 47,881 0 55,920 79,186 65,849 0 consumer units and refer to invoices that are past due and have been given a period of 15 days to settle the payment to avoid discon- Power reconnections after payment, per term 2021 2022 nection. After the suspension, if the invoice Less than 24 hours 333,520 420,547 is paid and there is no other outstanding invoice that prevents the reconnection, the system automatically generates a reconnec- tion service. The reconnection services are performed as a priority and in compliance with the established technical standards. From 24 hours to 48 hours From 49 hours to 72 hours From 73 hours to 96 hours From 97 hours to a week More than a week 18,708 11,906 5,648 9,079 53,740 23,595 14,903 5,867 10,299 64,179 the services are rendered automatically for faster service more than 420.500 power reconnections in less than 24 hrs reconnection services are given priority 111 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers Customer accessibility GRI EU24 Copel provides several service channels to In 2022, the Migration and Refuge Proj- audience on sustainability, safe and efficient ensure contact with consumers and the ect received two new volunteer training use of energy, in addition to on-site com- population in general, among which in- groups (see more on page 118 ). Available mercial service to the population, aiming clude the website, 0800, Ombudsman and in five languages, booklets for migrants to facilitate access to services and assist in face-to-face service at agencies and owned and refugees offer information about social clarifying doubts. and/or outsourced service stations (Copel programs and basic energy services. In com Você) located in all municipalities in its addition to the digital version, the printed concession area. For visually-impaired con- version of this material was also offered in sumers, energy bills are offered in Braille. 2022 and is handed out in actions with this Copel’s website is adapted for people with audience and at Copel's agencies since visual and hearing impairments. this group does not always have access to Refugees and immigrants Primers in different languages provide guidance on social programs and basic energy services: Portuguese Spanish French Haitian Creole English Ukrainian Click here 112 digital resources. The Iluminando Gerações (Enlightening Gen- erations) Program offers guidance concern- ing the safe and efficient use of energy and natural resources in a playful and educational way for students from the municipal school system, companies, non-governmental social institutions and the community in general. Copel Free Market Approximately 1.500 clients are present in the Copel Mercado Livre (Free Market) portfolio, located in 23 states. These are large energy consumers, mostly industries (Group A). EU3 Customer satisfaction is measured every year by a hired research institute. After-sales service is a strate- gic point in this relationship. Copel also participates in integrated actions With the expectation of a greater opening of this developed by the state and city govern- market, the company invests in systems and new ments, such as the Mutirões da Cidadania service solutions. The relationship channels include (Citizenship Groups) and Paraná Cidadão the website, which was improved in 2022, and also a (Paraná Citizen), to offer guidance to the WhatsApp service. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Customers 113 Safe use of electricity EU25 The number of individuals involved in acci- workers, visits to private construction sites, dents increased from 24 in 2021 to 35 in placement of information material to farm 2022. In regard to the communities where equipment stores, unions, construction, Copel offers services, actions aimed primari- hardware and paint stores, and for small in- ly at guidance and awareness are developed formal service providers. The company also in connection with its products, ventures conveys information by leafleting in public and administrative activities. places and disseminating the news through To prevent accidents in the community, about electricity broadcast over radios, TVs communication media and safety campaigns Copel has the Permanent Committee for and social networks. Risk Detection, made up of employees from all of the steering committees of Copel DIS. Booklets and brochures in virtual and printed The purpose of this committee is to set up format are also available via the website, procedures and actions to handle situations and at the branches. This material is also registered in the Risk Detection program, handed out at fairs and events in the com- inherent to the distribution network of the munities, in commerce, industry, and con- Company. The amount of accidents with the struction, in the rural area. community is also monitored through specif- ic indicators included in the Management Commitments. Energy accidents GRI EU25 2021 2022 Copel periodically conducts Safety Cam- Deaths paigns with the Community to instruct the Pending health and safety lawsuits population on the safe use of electricity Resolved health and safety lawsuits Individuals involved in accidents 24 15 104 6 35 17 17 3 through lectures for public school students, guidance for city and rural construction Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Social Responsibility Social Responsibility GRI 413-1, 413-2, 203-1, 203-2 In awareness of its prominent role in soci- by creating simplified environmental reports In addition to the mandatory social programs ety, Copel develops programs, projects and and detailed reports of each enterprise’s within the environmental licensing context, actions to benefit the community, taking environmental programs. Copel develops other actions aimed at com- into consideration the expectations of its munities within the corporate sustainability stakeholders in its decisions, as well as One of the recent examples was the release scope and in a corporate manner, such as finding alternatives that promote social wel- of the results of the studies of the Environ- the EducaODS Program. fare in line with laws, international norms mental Plan for Conservation and Use of the of behavior and global development agen- Surroundings of the Manmade Reservoir See more about the initiative in the das, such as the United Nations Agenda (Pacuera) of the Bela Vista hydropower plant. Sustainability Portal. 2030, which establishes 17 objectives and Public meetings were held in the municipal- 169 goals to achieve sustainable develop- ities of Verê and São João, both in Paraná, The Cultivar Energia program for the plant- ment. in the vicinity of the project, to show the ing and growing of vegetables under the population the results of the zoning and the transmission lines arose from a demand The implementation of new enterprises, activities that are allowed or limited in the uncovered in studies and the ongoing mon- besides generating jobs and income for the area surrounding the project. The meeting itoring of the impacts (see more about the municipalities, may also involve having to was streamed on YouTube and the recording project below). mitigate or offset possible impacts caused of the meeting, as well as the information, is by the activities. These impacts are assessed available on the website. in the environmental licensing processes with public presentations and disseminated through different communication channels. Copel puts in motion the social programs described in the Basic Environmental Plans 114 The Social Investment Policy broadens the parameters established in the Donations Policy, defining guidelines for the allocation of company funds or through incentive laws. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Social Responsibility Support in social investment guidelines The management of the social action indica- In 2022, Copel structured and approved the tors, mandatory or not, is based on the Sus- Social Investment Policy, which broadens the tainability and Corporate Citizenship Policy. The parameters established in the Donations Policy, setting of goals is carried out by meeting the defining guidelines for the allocation of compa- scope and deadline of the conditions, accord- ny funds or through incentive laws, regardless ing to the laws in force, the good practices if the contributions are voluntary or mandatory. of the electricity sector, and the guidelines The policy also supports the principle of con- of internal policies. The deployment of the nection with the SDGs prioritized by Copel as a socio-environmental programs is tracked and criterion for defining social investments. assessed to follow the process of maintaining the environmental licenses for the implemen- The subsidiaries must report voluntary and tation and operation of the projects. non-voluntary donations and contributions to the Holding Company's Governance, Risk By 2022, the impact assessments carried out and Compliance Office on a quarterly basis. by Copel covered 100% of the operations The Executive Board, in turn, periodically with significant impact (generation and trans- informs the amounts earmarked for Private mission). GRI 413-1 Social Investment to the Company's Sus- tainable Development Committee. Private Social Investment (Investimento Social Privado - ISP) BRL 26.4 million in social investments in 2022 via incentive laws 115 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Social Responsibility Promoting human rights GRI 2-12 Released in 2020 and revised at the end In the case of suppliers, the goal is to start of 2021, Copel’s Human Rights Policy a pilot due diligence project targeted at formalizes guidelines to prevent, mitigate human rights matters with field inspections and remedy violations that may occur in to check practices. The regulations for this the Company, in its production chain or in work, with the creation of standards and impacted communities, providing decent, criteria to be checked in the visits to suppli- inclusive work environments and eliminating ers, are in the final stages of validation at inequalities. Copel's compliance and legal area. To consolidate its application, Copel is Copel also conducted in 2022 the first standardizing oversight and assessment training course on due diligence in human parameters, including the provision for rights for key areas, including procure- due diligence for suppliers, and putting in ment managers and socio-environmental place processes. This work, which be- management of subsidiaries, as well as gan in 2022, involves a survey of priority the corporate legal and regulatory areas. topics related to human rights through One of the topics discussed was the consultation with various areas of the assessment of impacts on human rights in company and its subsidiaries and analysis the value chain, oversight and prevention of indicators of occupational health and actions and reporting and advancements safety, complaints received in the Whis- in the due diligence process in companies. tleblowing Channel and other information. Six meetings, totaling 18 hours of training, The purpose is to map all the practices al- were held and attended by 38 employees. ready in place at Copel to prevent human rights violations and pinpoint the most critical areas and weaknesses. 116 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Social Responsibility The agenda to promote human rights and due diligence to ensure that the principles and policy are adhered to by the Company and its suppliers is gaining more and more relevance and is a topic of special interest to stakeholders. It is important to point out that the process of updating the Human Rights Policy carried out in 2021 was monitored by the Sustain- able Development Committee, responsible for ensuring the application of the Board of Directors' guidelines. The policy, as well as Copel’s Human Rights Program, are ground- ed on the same documents and initiatives, of which the basic premises are: Review, setup and fine-tuning of Copel's policies and regulations for the prevention, inspection and mitigation of violations. Production and dissemination of teaching material, with information on Copel's whistleblowing channels if violations are detected. Courses, lectures and awareness-raising actions aimed at company employees, outsourced workers, the production chain and the local community. Referential The Human Rights Policy is based on the Universal Declaration of Human Rights established in 1948 by the UN. It is also an- chored on the international standard of the UN Guiding Principles on Business and Hu- man Rights, the Global Compact Principles, the Declaration of Fundamental Principles and Labor Rights of the International Labor Organization (ILO), and ISO 26,000:2010 - Social Responsibility. Copel is represented in the Human Rights Work Group of the Global Compact Network Brazil, which enables the sharing of expe- riences with other companies and ensures it is up to date with the best sustainability practices. 117 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Engagement with the Community GRI 413-1 EletriCidadania – volunteering Created 18 years ago, Copel's corporate Award - Voluntary Actions that Transform, volunteer program is one of the most recog- promoted by the Centro Integrado de nized business initiatives in Paraná. Em- ployees can voluntarily and spontaneously dedicate up to four business hours a month Estudos e Programas de Desenvolvimento (CIEDS), curated by the Global Sustentável Compact and supported by the United Instituto de Tecnologia do helps public high school students plan Paraná (Tecpar) their careers. With editions in 2021 and 2022, the project benefited 144 teenagers and involved 190 volunteers, adding up to on social actions. In 2022 alone, volunteers Nations Volunteers (UNV). The action, in 852 hours dedicated to the activities. dedicated 1,648 hours to the projects. partnership with the A total of 261 volunteers took part in the program, covering topics such as human rights, education, inclusion, health, environ- ment, citizenship, sustainability, and others, aligned with commitments voluntarily as- sumed by Copel, such as the Global Com- pact and the United Nations Agenda 2030 for sustainable development, summarized in 17 Sustainable Development Goals (SDGs). One of the projects developed by the volunteers was recognized as the best in the southern region in the Federal Govern- ment's National Volunteer Incentive Award 2022, and was also a finalist in the Aplaude 118 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Cultivar Energia (Cultivate Energy) program This program works in tandem with munic- ipal public policies for urban agriculture and social inclusion, and strengthens a set of actions to support the Sustainable Develop- ment Goals. Internally, it is consolidated as an auxiliary strategy to prevent squatters from occupying the land and increasing risks to the population. For the community, the main ben- efits are the environmental improvement of the urban space, an increase in food security, and the possibility of income generation. Another initiative arising from the Cultivar Energia program is the Compra Solidária (Joint Purchase). It consists of periodic purchases made by Copel employees of This project encourages the creation of The amount of production is noteworthy the produce grown in the gardens. The community gardens in urban empty lots since each garden produces an average of purchases are made weekly by pre-orga- located underneath Copel's power lines. In 3 to 3.5 tons of food a month, which adds nized groups of around 40 people and help partnership with city governments, the Cul- up to 33 tons of organic vegetables, fruits, complement the farmers' income, reducing tivar Energia program currently accounts for and legumes produced monthly that benefit uncertainties regarding the sale of their more than 40,000 m2 of land allocated for thousands of people. It is estimated that products. This is a movement that brings the the planting of vegetables and legumes. respectively around 1,700 people and 3,400 company's workforce closer to the gar- directly and indirectly benefit from this initia- dens and the farmers themselves since the The initiative, which is growing rapidly, in- tive, considering that the average interactions farmers deliver the products directly to the volves 445 families distributed in 12 gardens of direct beneficiaries are with third parties, employees, creating social awareness about and was born from a partnership with the who access the food produced in the vegeta- the work done since both sides benefit from city governments of Curitiba, Ponta Gros- ble patches via donations or sales. the healthy products. sa, Cascavel, Francisco Beltrão, Londrina, 119 Umuarama, and Maringá. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Migration and Refuge project With the aim of facilitating access to energy For over seven years the Empowering Refu- services and social programs for migrants gee Women project, an initiative of the UN and refugees arriving in Brazil, Copel pro- Refugee Agency (UNHCR), UN Global Com- vides translated primers in five languag- pact in Brazil, and UN Women, has been es - Portuguese, English, Spanish, Haitian working on the inclusion of refugee women Creole, Ukrainian and French - following the in the Brazilian labor market. logic of linguistic interaction. This means not only translating the content but also Around 40 Copel's employees participated in teaching the terms in Portuguese so that the the Empowering Refugee Women Program reader becomes familiar with the words and in 2022, held by the UN Refugee Agency identifies them when using the Company’s (UNHCR) for migrants and refugees in Brazil - website and other channels (see more on in partnership with Cáritas Paraná and Cáritas page 69). Curitiba. This was the first edition held in the south of Brazil and with the participation of The second stage of the project initiated in volunteers, who were divided into 3 areas: 2020 offered training for employees en- Portuguese language assistance activities, gaged in volunteer actions with this audi- children's recreation with the migrants' ence. The training was held in partnership children, and workshops on relevant topics. with Copel's Diversity Committee and was Workshops were given on topics such as Bra- attended by more than 100 people. The zilian Culture; Financial Education; CVs and training was conducted by Cáritas Brasile- job interviews; Work documentation in Brazil; ira Regional Paraná - an organization that Socio-emotional skills; Self-care and Health; develops national and international solidarity Labor laws, rights and duties in Brazil, ECA, actions to assist communities affected by Maria da Penha Law; Copel's basic services socio-environmental disasters or that are in and social programs. vulnerable situations. 120 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Main initiatives Campanha Energia Segura concentrated and joint effort, this campaign (rural area) - in a program. Through digital games, children The target audience of the program are 4th have another way to put into practice, in a and 5th graders in Elementary school but provided information statewide between playful way, what they have already learned the program is in the process of being ex- November 21 and 25 and handed out materi- about responsible consumption and electric panded to Middle School students through al to workers in the rural area directly shock prevention. a partnership with the State Education through Farming, Co-ops, and Hardware Department of Paraná and the Municipal Ed- stores. Iluminando Gerações (Enlightening ucation Department of Curitiba. More than Campanha Energia Segura tion) – from August 22 to 26, this campaign (civil construc- Generations) – Developed in partnership 1.5 million students have already taken part with teachers and the Municipal Education in the project in 15 years of operation. Departments, the Enlightening Generations provided information and handed out ma- Program develops educational actions for New projects – In new projects carried out terials to civil construction workers directly the safe and responsible use of electricity by Copel, guidelines on health, safety and through construction sites and construction through lectures in schools, events, and on the positive and negative impacts gener- and hardware material stores. generation of content to prevent accidental ated by Copel’s presence in the region are “Se Liga" and "Click Esperto" games – besides encouraging habits aligned with with the construction workers and the Com- launched in October, 2022, these games the SDGs. munity Relations Program. shocks and waste in energy consumption, addressed through the Awareness Program were designed for children between seven and ten years of age, as a complement to the content of the Iluminando Gerações To prevent accidents in the community, Copel has the Permanent Risk Detection Committee, made up of employees from all of the steering committees of Copel Distribuição, who come together to devise procedures and actions. 121 See more Learn more about communication and awareness actions on page 110 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Public policy Social Electricity Tariff Provision of Social Care (BPC) are elderly gram in 2022, which required an investment (Tarifa Social de Energia Elétrica) GRI 203-2, SASB-IF-EU-240a.4 people aged 65 or over or people with dis- of BRL 3.81 million in distribution networks abilities families registered in the Cadastro and service startups. GRI EU23 575,000 consumer units benefited by the Social Electricity Tariff This consists of granting discounts on the electricity tariff of low-income families enrolled in the Single Registry of Social Programs of the Federal Government with monthly family income per capita of less than or equal to ½ national minimum wage. Others that may benefit from the Continued Único (Single Registration) with a monthly income of up to three minimum wages, Night Irrigation and Aquaculture Tariff people who have a disease or disability (Tarifa de Irrigação/Aquicultura Noturna - whose treatment, medical or therapeutic TIN/TAN) procedure requires the continued use of electricity-reliant equipment or instruments. The Rural Night Tariff Program, ended on The discounts apply to energy consumption 01/Jan/2023 under Law 20435/2020, was a up to a limit of 220 kWh. A total of 575,000 state program that granted a 60% to 70% consumer units were benefited by the TSEE discount on electricity used for production in 2022, through an Aneel disbursement of in the period between 9:30pm and 6am as BRL 151.6 million for the program. a way to encourage agricultural productivity. Casa Fácil Paraná (Easy Home) housing units of rural producers in 2022, represent- program ing BRL 44.4 million in discounts granted in This program benefited 12,528 consumer their electricity bills. Copel Distribuição participates in the con- struction work of electricity distribution net- The Night Irrigation/Aquaculture Tariff is a works and in implementing service startups federal program that granted a 60% to 70% in ventures aimed at families with a monthly discount on electricity tariff used exclusively income of up to six minimum salaries. The for irrigation and aquaculture activities, in the costs incurred by Copel DIS in deploying period between 9:30pm and 6am. In 2022, the Program are reimbursed by the State 3,900 consumer units were benefited, totaling of Paraná at every financial year. A total of subsidies amounting to BRL 16.6 million. 1,570 housing units benefited from this pro- 122 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Management of displacement impacts GRI EU20, EU22 Populations that need to be relocated due the contact details of the land and social pact on vegetation besides ensuring greater to the implementation of energy projects experts overseeing the process are made protection in relation to risks in contact with can count on Copel's monitoring and full available. Conversations with those affect- electricity, both for people and animals. support. The process has as its cornerstone ed are encouraged at this stage. respect for people and human dignity. There was no need to displace people in In the case of involuntary displacement, 2022, however, the Company paid indem- In hydropower generation ventures, Copel Copel acts on two fronts, according to the nifications to properties during the year for GeT complies with the environmental laws characteristics and conditions of ownership the installation of new lines and substa- and applies the socio-economic registra- of the area (whether an owner or squat- tions. In the past three years, BRL 54.2 tion of the population. In transmission ters, sharecroppers, and occupants). The million was spent on cases of this type. projects, the social, land and engineering search for amicable solutions is the basic areas work together to find a way, even assumption with fair financial compensa- during the stage of outlining the roadmap, tion or social support in cases of families in to avoid relocation as much as possible. vulnerable conditions. In the planning phase of the projects, a communication telephone channel (0800) The company's operations do not require and an email is made available to all those the displacement of families. The routes of directly affected so they can ask questions the lines are studied so as to cause the least Number of people displaced and compensations GRI EU22 about the process. Once the project has possible impact on the environment and on been established and the families that are the routine of the communities. Copel DIS Displaced people Indemnified people likely to be relocated have been identified, also adopts substitutive technologies for the families are approached at home and bare networks as a way to mitigate the im- Compensation for people displaced in the past three years (BRL thousand) 0 1,179 54,269 123 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Engagement with the community Relationship with indigenous people GRI 411-1, EU23, EU24 Traditional communities, such as quilombolas and indigenous people, are included among (FUNAI)1 and the Public Prosecutor’s Office. The investments are established in the populations surrounding the enterprises discussions with the communities and their Resources (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis - Ibama), National Institute for Settlement and Agrarian Reform (Instituto that Copel Geração and Transmissão operate. representatives, taking into consideration Nacional de Colonização e Reforma Agrária - Incra), The relationship with this audience is focused their forms of organization and tradition. National Transport Infrastructure Department (Departa- primarily on initiatives to promote socioeco- nomic sustainability and cultural apprecia- In order to meet the demand for electricity mento Nacional de Infraestrutura de Transportes - DNIT) e the Chico Mendes Institute for Biodiversity tion of these communities. The actions are by the Indigenous communities located in Conservation (Instituto Chico Mendes de Conservação developed in two indigenous communities environmental protection areas or other areas where the company has facilities: the Apuca- where it is not possible to implement a grid, da Biodiversidade - ICMBio), as well as representatives from traditional communities (quilombolas, river-side rana Indigenous Territory in the municipality Copel Distribuição develops projects for new communities, collective animal breeding groups, of Tamarana, where the 10 MW Apucara- power connections with the installation of ninha hydropower plant is installed, and the photovoltaic panels, guidelines on the effi- Barão de Antonina Indigenous Territory in São cient use of electricity, as well as also regis- Indigenous people, and traditional fishermen). Since 2018, Copel GeT has accompanied, together with Copel DIS, the actions to update the registration of Jerônimo da Serra, intercepted by the 230 kV ters the Indigenous communities in the Social consumer units in the Apucarana Indigenous Territory, Figueira - Apucarana Transmission Line. Electricity Tariff. The performance of the activities was made Copel Distribuição also participates in the possible through the creation of specific meetings of the State Council for Indigenous resulting in a 44% increase in the inclusion of indigenous families in social energy programs (Tarifa Social de Energia Elétrica and Programa Luz Fraterna), in addition to carrying out network extension works funds owned by the respective communities People and Traditional Communities of Paraná and the individualization of consumer units. with the objective of funding programs inside to listen to their demands and offer expla- the Indigenous territories. The innovation nations to all participants. Several agencies that this financing model brings is its hybrid attend these meetings, such as Water and management since the funds are managed Earth Institute (Instituto Água e Terra - IAT), by joint management committees made up National Indigenous Peoples’ Foundation of representatives of Copel and represen- (Fundação Nacional dos Povos Indígenas - Fu- tatives of the indigenous communities with nai), Palmares Foundation, Brazilian Institute There was no record of violations of indigenous peoples' rights in any of Copel's operations in 2022. 1 Funai is the national institute for the protection of the indigenous 124 oversight by Fundação Nacional do Índio - of the Environment and Renewable Natural Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Relationship with Suppliers Relationship with Suppliers GRI 2-6, 204-1, 308-1, 308-2, 407-1, 408-1, 409-1, 414-1, 414-2 Copel has strengthened its relationship with that will further support the risk management ternal Regulations for Bidding and Contracts, suppliers by implementing sustainable de- process in the supply chain. The process as which restrict supplier selection actions. velopment initiatives through improvements yet under way, includes information related However, the company uses as criteria in in the management of the production chain to integrity, among other issues, and will the selection of suppliers, compliance with and the optimization of resources that can subsidize more objective parameters for the labor, human rights, tax, and environmen- benefit the community. classification of the criticality of suppliers. tal legislation. When selecting services or products that may cause an impact on the The company's supply chain is diversified to Another priority in supplier management is the environment, Copel requires environmental meet the needs of its business of genera- human rights due diligence process (see more certificates and qualifications from the com- tion, transmission, trade and distribution of on page 116). pany and the professionals. electricity, including manufacturers of materi- als, heavy machinery, and service providers, In order to classify, hire suppliers and make In the qualification stage, all suppliers are among others. The Holding Company's main acquisitions, Copel opens a tender and follows required to submit a "Statement of Social suppliers, for example, are service provid- the rules of the Internal Regulation for Tenders and Environmental Responsibility", which ers, such as for cleaning and maintenance, and Contracts, and the current laws, which includes the prevention of child labor, surveillance, reception, real estate rentals, includes Federal Law 10520/2002 (which degrading conditions or slave-like condi- maintenance and renovation of facilities, con- establishes the bidding modality in the trading tions; respect for human rights, freedom sultants, travel agencies, etc. or they supply session format) and Complementary Law of association and collective bargaining and materials for common business needs. The 123/2006 (which establishes the Brazilian Law the environment. The contractual demands Company had a total of 7,200 in 2022. for Micro and Small Enterprises). also include incorporating the Global Com- pact Principles, prioritizing the hiring of local Also in 2022, Copel started to assess suppli- As a mixed-capital corporation, Copel is and small and medium suppliers, hiring and ers through a survey at the corporate level subject to Federal Law 13 303/16 and its In- training professionals with disabilities, elimi- , 125 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Relationship with Suppliers nating bullying and sexual harassment in the The criteria used to select and hire suppliers workplace and others. To further support all are based on internal policies and standards, these points, Copel sends its Sustainability such as: Policy, Code of Conduct and Supplier Manu- al to its suppliers. Inspections may be carried out at any time at the contracted party's headquarters or at the activity site to verify compliance with contractual clauses. Copel also organizes Internal Regulations for Tenders and Contracts, in compliance with Federal Law 13 303/2016, NAC , 030904 - Contract Management awareness meetings and offers informative material on topics such as forced or slave- NPC 0201 - Supply Policy, NAC 030406 - Supplier Assessment like labor. Company Code of Conduct, Supplier Manual, and Solid Waste Management Manual NPC 0322 – Privacy and Personal Data Protection Policy, in accordance with the General Personal Data Protection Law (LGPD, 13 , of August 14, 2018). 709/2018 7,200 suppliers are part of Copel's base 126 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Social and Relationship Capital | Relationship with Suppliers Micro and small companies and micro-entre- Labor aspects GRI 414-2 preneurs receive differentiated treatment in 303/2016, accordance with Federal Law 13 , The suppliers attend integration meetings which ensures benefits for these companies. and must offer information, such as their Tenders that are exclusive or that give prefer- list of employees, documentation such as ence to micro and small companies and mi- work cards and occupational health certifi- cro-entrepreneurs in tie-breaking criteria are cates, and employee registration forms to also held. There are no specific procedures, the Regional Labor Steering Committee, however, for the hiring of local suppliers. among other requirements. Non-compliance with contractual clauses Copel Distribuição holds the Copel DIS regarding the environment or social re- Supplier Award, in which it evaluates social sponsibility leads to sanctions based on the impacts in the supplier network. In 2022, seriousness of the case, including warn- the process assessed 125 suppliers, nine of ings, fines, suspension from participating in which were identified as causing significant tenders, contractual termination and notices negative social impacts, such as the involve- sent to relevant legal agencies informing of ment of employees in serious accidents a possible infringement. involving leaves or fatalities. Percentage of expenses with local suppliers1 GRI 204-1 Copel Holding Company Copel Distribuição Copel Geração e Transmissão2 2022 34.64% 18.61% 71.28% 1. Copel considers local suppliers those that are headquartered in Paraná. 2. In the case of Geração e Transmissão, besides Paraná, the states of Mato Grosso, Rio Grande do Norte, Santa Catarina, and São Paulo are also considered. 127 See more To see more about the management of suppliers of Copel DIS and Copel GeT, see Sustainability Portal or Social- Environmental Reports Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital 128 Human Capital SDG Capitals 4 8 9 11 INDIRECTLY Copel's People Management Policy - Human In 2022, the Policy, valid for the Holding Resources has established principles and Company, its wholly-owned subsidiaries and guidelines to direct management with a controlled companies, was revised and was view to developing and maintaining people's re-approved by the Board of Directors to health, safety and quality of life. It is also ensure that the content is in sync with the designed to add value to the processes and strategic planning and the new challenges. serves as a basis for decision making and for the implementation of current and inno- The company culture is assessed by Camer- vative programs and practices. on and Quinn's (1999) diagnostic instrument, the Organizational Culture Assessment In alignment with the market, Copel adopts Instrument (OCAI), which pinpoints the the concept of "State-run company with a predominant cultural characteristics of the private mindset" in its operations aiming to company for the development of culture create similarity in its conduct with other when necessary, organizational aspect private companies in the sector. improvement and to respond to demands, in accordance with Copel's health and safety programs (see more on page 140). Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital Staff structure GRI 2-7, 2-8, 404-2 Since it is a government-controlled com- who continued in the company into new third-party hiring program follows all legal pany, in which the majority shareholder is jobs, which shows its concern for people. and labor safety requirements, with provi- the government of the State of Paraná, the They were also given the option to resign by sions on the subject in the Supplier Manual employees are selected through a public joining a VDP, considered to be the compa- and in the Hiring Manual. It is up to the con- exam guided by the principle of equality and ny's largest. equal opportunity. Therefore, there are no tract manager to monitor and supervise the entire process, from hiring to performance commissioned positions in the organization. With the help of consulting firm FIA Busi- and delivery of the contracted work. In 2022, the total number of employees was ness School, Copel also revised its corporate 5,875, 8% less than in 2021. structure in a process that reduced man- Most of the outsourced workers are allocat- agement positions by 20% and optimized ed to the operational areas of Copel DIS and In its search for business efficiency, Co- economic performance. Copel GeT, in addition to the Shared Services pel has put in place a Voluntary Dismissal Center ( Centro de Serviços Compartilhados - Program (VDP), which creates a balance In 2022, 440 of the 511 employees who left CSC) of Copel (Holding Company), and are between the need to streamline the business the company joined the Voluntary Dismissal concentrated in activities such as and generate gains from digitization with the Program. 93 of this total chose to use the conservation and safety of facilities, engineer- best possible conditions for those wishing consulting and/or course benefit to help with ing work, administrative services, auxiliary, to make a career transition. The VDP process career transition, totaling BRL 375,200 in commercial and support services, and techni- has been accelerated in the past two years addition to the indemnities received. cal and operational services. The company had 5,875 was the number of Copel employees at the end of 2022 because of the divestment of the telecom 8,574 outsourced workers in 2022. business (with the sale taking place in 2020 To support operational areas and specific and the control transfer in 2022). jobs, Copel adopts the provision of services Copel chose to reposition the employees agement of these contracts is managed (hiring outsourced employees). The man- by the hiring area and is not linked to the Company's People Management Policy. The 129 In search of business efficiency, Copel has not hired new employees for five years and offers the Voluntary Dismissal Program (VDP). Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital Certified management maturity Copel received from the National Quality Foundation ( FNQ) the first assessment certificate dedicated to the maturity of Qualidade - the human resource management of the company. The MEG HR Seal is the result of an extensive analysis of the organiza-tion's processes and their adherence to the reference practices observed in top tier companies. Fundação Nacional de online and on-site meetings, access to the system, generation of overtime, etc. Such data enables the manager to better manage and make decisions so the processes can run smoothly. A few of the strong points pointed out were the strategic performance of the HR area, performance management, the meritocracy policy, and the care taken with job security and the employees' quality of life. The conditions for adhering to the hybrid work regime are set forth in the Collective Bargaining Agreement. Employee satisfaction remote and face-to-face work. The guidelines are comprehensive and start from the top In 2022, the Corporate Environment Survey down until it reaches the manager, who is in COMPANY EMPLOYEES, BY GENDER GRI 2-7 Diagnosis, Great Place to Work For All heard charge of assessing the request, considering 73% of the employees, which equals to the type of activity the employee performs more than 4,000 employees who answered and his/her productivity, among other points. 2021 WOMEN 1,417 (22.2%) questions related to the corporate environ- After this study, the decision was made to ment. The survey, carried out independently allow hybrid work - the new rule allows from by GPTW, resulted in an average assess- one to four days a week worked from home. ment of 65 for Copel, compared to 70 in the 2021 survey. It is important to point out that not all areas are eligible in this process because of the Establishment of hybrid work characteristics of each job, such as the operational ones. To ensure the efficiency From the lesson learned during the pan- and good performance of the model for demic, Copel launched the guidelines for its the employee and for the business, Copel 2022 WOMEN 1,268 (21.6%) MEN 4,966 (77.8%) TOTAL 6,383 MEN 4,607 (78.4%) TOTAL 5,875 hybrid work program, which combines both monitors indicators such as participation in 1. Copel does not have any employees on zero-hour contracts. 130 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | People Development People Development GRI EU14 The Corporate Education Policy lays out the Mainly the employees in the technical conduct for the promotion of training and area significantly increased their skills in development actions for people, which must 2022 after a boost in on-site training. The be structured according to Copel's mission, corporate education model offered by the vision and values. The guidelines range from Corporate COPEL University (UniCopel) was basic training to extension courses and the also revisited during the year. In addition, it development of research. offered content on diversity, internal con- trols, cybersecurity, and code of conduct, Copel also offers courses with content among others. related to quality management, languag- es, processes and projects, and auxiliary The average number of training hours management tools. Funds are also invest- per employee was 35.95 in the period, ed in non-degree graduate programs and as compared to 22.61 the previous year. non-masters or doctorate postgraduate The financial investments with develop- courses aimed at professionals who wish to ment have also been ramped up, reaching acquire more knowledge in their business BRL 6,584,716. area. Partner educational institutions also offer benefits to employees, some of which extend to their dependents. INVESTMENT IN TRAINING AND DEVELOPMENT (BRL MILLION) 7.0 6.0 5.0 3.0 6.6 3.7 3.1 2020 2021 2022 Total and average hours of training by gender GRI 404-1 Employee total Hours of training Average training hours Men Women Total 131 4,607 1,268 5,875 174,146.93 37,033.15 211,180.08 37.80 29.20 35.95 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | People Development Performance assessment GRI 404-3 Remuneration and benefits GRI 2-20 , 401-2 The performance management model, The Career and Remuneration Structure doc- employees with outstanding performances based on the achievement of of financial, operational and sustainability different levels dubbed Nossa Energia (Our Energy), is an ument describes careers and their respective goals. The benefit, which rec-ognizes results important management tool to foster the remuneration based on market practices, job, at different corporate levels (board, steering development and appreciation of employ- and level of education and qualification. The committee, department, division), is an ees based on their performance, as well as benefits and short-term variable remunera- opportunity for the goals set to be discussed to align and link employee performance to tion are established in the Collective Bargain- by managers and employees and monitored the achievement of the Company's strate- ing Agreement, held annually by the unions with greater frequency and at-tention by all, gic goals. and Copel. The entire process is managed by encouraging the prioritization of activities and the corporate human resources area (valid the definition of work methods. The Company hired FIA Business School for the Holding Company, subsidiaries, and to carry out an assessment and redesign controlled companies). the program in 2021. The first edition of the In 2022, the total annual remuneration of the highest paid individual (not considering new model was launched in 2022 and it is The review of the process is carried out the CEO) was 4.6 times higher than the focuses on performance management and periodically with the support of remuneration average annual remuneration of the other competency assessment consistent with consultants, alignments with the boards Copel employees - in 2021 this difference the Company's strategic planning. As a good and market comparisons. The employees was 5.43. If considering the CEO's compen- market practice, the governing boards now can share their opinion regarding the remu- sation, the ratio becomes 11.79 times, con- participate in the assessments to support neration policy in annual work environment sidering the median of employees with 12 the consolidation of the reviews carried out surveys (GPTW). In addition, the employees' salaries in 2022. If, instead of the median, by the managers and support the assess- expectations are expressed and considered the average remuneration of the employees ments of their teams' performance. The in the periodic meetings held between Copel is considered, and still including the CEO, assessment program for the 2022 period is and the unions that represent the employees. this ratio becomes 10.08 times. GRI 2-21 underway and should be completed in the first half of 2023. The goal is to keep 100% In order to reinforce the meritocracy culture of the skilled employees evaluated, as in the last three years. 132 at Copel, the Performance Bonus ( Prêmio PPD) is a variable and por Desempenho - periodic remuneration to recognize Annex See the details of the Human Capital indicators Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | People Development Copel offers all its employees a benefits package that exceeds legal requirements and is compatible with that of benchmark companies in people management. To make information more transparent, the Balance of Benefits of Copel ( Balanço de Benefícios BBC) annually discloses the da Copel - salaries, bonuses, profit sharing, pension plan, food allowance, day care allowance, performance award and health plan, among others. The health plan is based on the co- participation model. Regarding maternity leave, the Constitution provides for 120 days of leave but Copel offers an extra 60 days in addition to reducing the daily work day from 8 to 6 hours, with no impact on salary, for 60 days after the return from maternity leave to encourage and promote breastfeeding. This benefit extends to mothers who adopt, even for late adoptions. Paternity leave is also extended, totaling 20 working days. GRI 401-2 133 Collective Bargaining Agreement (CBA) GRI 2-30 At Copel, 100% of the employees are covered by collective bargaining agreements. With a base date in October, the negotiations of the 22/24 stage were not concluded until December 2022. After three deliberations, the Company's proposal, which defines the adjustment of salaries and allowances, bank of hours and working hours, vacations, funding by the Copel Foundation, and the Voluntary Dismissal Policy (VDP), was approved in January 2023. The complexity of the negotiations involving 18 unions that represent Copel's employees was due to the disclosure of news about the Paraná State Government's decision to change the Company's legal structure to a corporation without state control (see more on page 49). Copel, recognizing that this fact has changed the expectations and trajectories of its employees since the matter became public, has stepped up its communication about the process, which is still under way, and strives to conduct all the negotiations about the subject in the CBA discussion environment with the utmost respect. During the negotiations, Copel presented an extended VRP to regulate the possibility of downsizing the workforce until 2027. It is important to point out that for all significant changes in the corporate structure, a formal change management plan is carried out with a plan to disclose the change to all parties affected, defining what, when, how and in what way those affected need to be informed and/or involved. However, Copel main- tains a close relationship with employee representatives and usually informs them in advance when significant operational changes will take place in the organization. GRI 402-1 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | People Development Bem Gestar (Good Pregnancy) Program In order to offer special care during preg- nancy, Copel introduced the Bem Gestar program, which offers a series of actions that include an online group for pregnant Pension plan and retirement plan GRI 201-3, 404-2 Copel offers, through the Copel Foundation, since 1979 and, among other things, offers a supplementary pension plan, in which the financial and pension education, which employees are given the option to set up a discusses the importance of retirement financial reserve fund during their careers. planning and a series of activities involving women and support rooms for breastfeed- With contributions from the employees and topics, such as consumer habits and savings, ing and responsible fatherhood. The program Copel, it is eligible for all employees. Mem- entrepreneurship, quality of life, and health. also extends to pregnant women of children bership is voluntary and also makes the of parents who are Copel employees. participant a beneficiary of the health plan. A new learning track was introduced in 2022 The Copel Foundation continuously offers training for future parents with post-natal care guidance. It also encourages parents to perform prenatal exams. The Pre-Retirement Program (Programa involved integral health and personal strate- Pré-Aposentadoria - PPA) has been offered gic planning content. to help employees create a life plan and it Copel's employees are also entitled to: EMPLOYEES WHO MAY RETIRE IN THE NEXT 5 OR 10 YEARS BY JOB CATEGORY GRI EU15 Women: the benefit extends to six months. In addition, the workday for women, who have returned from leave, is reduced to 6 hours for 60 days so they can carry on breastfeeding. Line and connection workers Power plant operators Engineers Maintenance mechanics Men: The paternity leave is 20 days. Other All employees 21.18% 13.64% 15.74% 17.42% 24.18% 22.03% 34,73% 22,73% 29,07% 32,75% 37,59% 36,00% 134 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Development | Human Capital | Diversity Diversity GRI 405-1, PRME 3, 6 Copel has a Permanent Committee for the leadership. If all jobs are considered, women Promotion of Diversity to foster equity and make up 21.6% of the staff. compliance with human rights in the Com- pany with priority given to vulnerable groups To strive for greater diversity in its leadership, and those subject to discrimination, espe- Copel has designed a Female Leadership cially those based on gender, race, color, Development Program with action fronts disability, and sexual orientation. that involve profile, self-knowledge, incentive actions to encourage diversity, and support Identifying weaknesses and improving the network and tools. In addition to the review way the Company handles issues related to on the profile of the management positions, diversity is an essential part of its position as Copel formed the first group to take part in a company that abides by the commitments a series of meetings and training sessions. undertaken with the UN Global Compact It was attended by 90 women and the first and the Sustainable Development Goals, meeting, which was held online, took place particularly SDG 5 - Gender Equality, SDG as recently as 2022. 10 - Reduce inequalities and SDG 8 - Decent Work and Economic Growth. Specific projects are also in place in the subsidiaries. At Copel DIS, DISversidade With basis on these principles, Copel un- (DISversity) was reinforced with a plan to dertook a commitment in 2022 to increase find and eliminate possible gaps that hinder the involvement of women in top leader- the access of minority groups to leadership ship. The goal is to increase the number of roles, whether related to technical, psycho- women in these positions by 40% by 2025 logical or social capital issues, as well as - currently, they make up 17% of the senior others. The action also seeks to map and Women at Copel Gender equality is one of Copel's commitments, underpinned in Vision 2030 with the goal of increasing the share of women in leadership positions by 40% by 2025. The current representa- tion of women in these positions is as follows: 89 women in management positions, representing a total of 23% of all managers. 53 women in starting management positions, representing 23.9% of all starting managers. 6 women in top management positions, representing 17.6% of the total top management. 1 woman director, which represents 14.3% of all boards. 1 woman on the Board of Directors, which represents 11.1% of the total. 10 women in management areas that generate income, rep- resenting 21.3% of all managers. 350 women in STEM* fields, which represent 17.8% of the total number of professionals in the fields. 300 women in administrative positions, which represents 45.6% of the total number of professionals in these posi- tions. *Science, Technology, Engineering and Mathematics 135 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Development | Human Capital | Diversity develop women for the succession bank. promotion of diversity in the company also Twenty-two female managers are taking part reflects Copel's connection with the UN in actions aimed at furthering their careers, Women Empowerment Principles (WEP). such as coaching and mentoring sessions, outside training, and other activities. The company maintains a specific commit- tee (Committee for the Analysis of Bullying At Copel GeT, a program focused on mana- Claims - Cadam) to look into issues involving gerial positions was kicked off in the Oper- harassment. One case of discrimination ations and Maintenance Board - the de- was registered in 2022. It was duly analyzed partment is formed mostly by engineering and the necessary remedial measures were professionals, the study area with the low- applied without the need to implement a est participation by women at Copel - 13%. remediation plan. GRI 406-1 A survey with more than 60 professionals from the board of directors described their perception of their activities, professional fulfillment, and their aspirations. The results have been used to support actions to encourage self-development, competence mapping for professional guidance, mento- ring with current managers (godmothers), TOTAL EMPLOYEES, BY JOB TYPE AND GENDER GRI 405-1 22 managers participate in actions to accelerate their careers and events with inspiring female leaders. The importance of upholding respect for and protection of human rights and the elimination of discrimination in employment Job category Operational Secondary-level technical professional is formalized in the Human Rights Policy Secondary-level professional and in the Sustainability Policy of Copel. The University-level professional Total Total 18 1,450 3,271 1,136 5,875 Women Number 0 102 866 300 Men % 0% Number % 18 100.0% 7.0% 1,348 93.0% 26.5% 26.4% 2,405 836 73.5% 73.6% 1,268 21.58% 4,607 78.42% 136 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Development | Human Capital | Diversity DIVERSITY IN GOVERNANCE, BY GENDER GRI 405-1 Governing Bodies Board Percentage of members, by gender Male Female 85.7% 14.3% Percentage of members, by age group Under 30 years old From 30 to 50 Over 50 0.0% 71.4% 28.6% Percentage of members, by color/race Asian White Indigenous people Mixed race Black 0% 100% 0% 0% 0% Percentage of members, by vulnerable group Women Blacks People with disabilities LGBTQIA+ Indigenous people Over 50 14.3% 0% 0% 0% 0% 28.6% Board of Directors Fiscal Council Statutory Audit Committee Other entities 88.9% 11.1% 0% 44.4% 55.6% 0% 88.9% 0% 0% 11.1% 11.1% 11.1% 0% 0% 0% 55.6% 100.0% 0% 0% 20.0% 80.0% 0% 100% 0% 0% 0% 0% 0% 0% 0% 0% 100.0% 0% 0% 0% 100.0% 0% 100% 0% 0% 0% 0% 0% 0% 0% 0% 80% 100.0% 92.9% 7.1% 0% 42.9% 57.1% 0% 92.9% 0% 0% 7.1% 7.1% 7.1% 0% 0% 0% 57.1% 137 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Development | Human Capital | Diversity Actions new challenges in the world of work Black Awareness Month Unconscious biases: Initiatives to promote diversity in gender, The lecture given by Mirian Goldenberg, The program included a series of informa- race and color, age, religion, and sexual professor of the Cultural Anthropology Depart- tive talks about structural racism and how to orientation, as well as to include people ment and of the Graduate Program in Sociol- adopt an anti-racist stance. There was also the with disabilities, migrants, and refugees, go ogy and Anthropology of the Philosophy and launch of an episode on racial diversity in the beyond the internal teams. Copel seeks to Social Sciences Institute (IFCS) at the Federal podcast Energia da Sustentabilidade (Sustain- exercise its leadership within the value chain University of Rio de Janeiro (UFRJ), was ability Energy), a cultural event to honor black and raise awareness and support actions in attended by over 500 people. At the event, the artists and remind the listeners of the compa- the supply chain and in society in general. importance of all people identifying uncon- ny's whistleblowing channels. The following are some of these actions: scious gender issues was highlighted, taking into consideration three levels of understand- ing: discourse, behavior, and values. Several aspects about the cultural image of men and women were addressed on the occasion. In 2022, 47 hours of training and diversity events were held, with 2,918 participants from 38 municipalities in Paraná, Mato Grosso and Rio Grande do Norte - states when Copel has operations. The educational quizzes on Indigenous Diversity Day, LGBTQIA+ rights, and Black Awareness month were attended by 1,447 participants from 78 municipalities in Paraná, Mato Grosso and Rio Grande do Norte. In all, the trainings, events and quizzes brought together participants from 84 municipalities in Brazil in 2022. 138 Copel seeks to exercise its leadership within the value chain and raise awareness and support actions. Diversity - Results 2022 Total training hours Total hours of events and training Total participants in training Total participants in events and training Total participants in quizzes 40.20 hrs 47 hrs 2,256 2,918 1,447 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Development | Human Capital | Diversity LGBTI+ Rights Diversity newsletter More Inclusion In 2022, a page about LGBTI+ Rights was This newsletter, issued every quarter in A comprehensive project for attitudinal created in the internal network, with top- corporate notices, includes a summary of accessibility was implemented in partnership ics such as: what is discrimination and the actions of the Permanent Commission with the Social Action for Equality of homophobia, how to act and how not to for Diversity Promotion and encourages dis- act in order to be an ally; legislation; social cussions about this topic in the Company to name; Whistleblowing Channel; suggestions keep the subject current and included in the Differences ( Ação Social para Igualdade das ASID). The training was attended Diferenças - by 1,293 employees, representing 22% of for sites about the topic; research data. In conversation and corporate culture. Commu- the staff. Specific workshops for managers addition, awareness-raising actions and nication and marketing professionals under- were attended by 59.2% of the managers the launch of an episode about the LGBTI+ go mandatory diversity training every year. and for HR, 75% of this group attended. The issue and labor relations aired in the Sustain- ability Energy podcast. In addition, aware- Diversity focus group ness-raising actions and ad episode about communication and marketing team also received training. The final stage comprised corporate volunteer actions held in five cities the LGBTI+ issue and labor relations were These groups aim to improve contact with in Paraná, offering help to prepare résumés aired in the Sustainability Energy podcast. the in-house staff of different municipalities for the market and the delivery of a guide- and listen to them in order to broaden the book on accessible communication. Campaign to Fight Gender Violence engagement and the accuracy of the Com- mission's actions. With voluntary participa- A series of four videos produced by Copel's tion, it addresses issues such as gender, Diversity Committee on gender violence race/color, accessibility, age, religion and was available on YouTube in 2021 and 2022. people with disabilities. The production was staged by the theater group formed by the employees themselves and addresses issues such as the role of men, signs of violence against women and hot to identify and give guidance in the case of an abusive relationship. 139 Social name Copel respects everyone's identity and understands that adopting a social name helps people feel comfortable in their work environment. The employee may choose to use the social name on a badge, email and corporate telephone guide in accordance with internal regulations. Annex See the details of the Human Capital indicators Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety Health and Safety GRI 3-3, 403-1,403-2, 403-3, 403-4, 403-5, 403-7, 403-8, EU16, EU18, PRME 1, 2, 3 In order for the health and safety manage- safety area (SESMT) along with the employ- remuneration is linked to the goal of zero ment to act cohesively, it is conducted by a ees and the Internal Accident Prevention fatal accidents involving Copel employees multi-professional team with professionals Committee ( Comissão Interna de Prevenção and outsourced workers. from the areas of Engineering, Occupational Medicine, and Social Care. The Occupational Health Medical Control Program ( Programa de Controle Médico de de Acidentes - involved in the activity are technically CIPA). All professionals qualified to analyze hazards and risks and deaths of outsourced workers were Three registered in 2022 and no deaths of instruct employees in the methodology company employees in the same period. Saúde Ocupacional - the Risk Management Program ( PCMSO) is linked to Programa before the assessment process begins. de Gerenciamento de Riscos - oversees aspects related to the different PGR) and regulatory standards, activities, dangers and environmental risks in every, role or activity, The Balanced Scorecard methodology serves as a basis for defining health and safety indicators - and consequently for the strate - gic planning of relevant actions -, which are focusing on identifying pos-sible injuries and included in the Management Contract with problems caused by these risks. the subsidiaries and broken down into the A few of the processes included in the indicators of the Management Commitments management are: monitoring of absentee- of the steering committees and departments. ism indicators (absence); performance of periodic and preventive exams, and The attention to health and safety is a accident frequency and severity rates with non-negotiable guideline and whose initia- company and outsourced workers. tives continue to be improved and expand- ed in the search for excellence. To further All workers, activities, and workplaces are reinforce this assumption, the topic began covered by the risk management program to impact the variable remuneration of the and the process is conducted by the work Company's leaders and other employees in 140 2022. It was established that 10% of this A non-negotiable premise of the company, care for health and safety, continues to be improved and expanded. The topic began to impact the variable remuneration of the Company's leaders and other employees in 2022. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety Risk identification and prevention In the work routine of Copel employees, several activities are conducted at the addresses of the concession area (situated in urban, rural and mar- itime areas) that have significant accident risk. The main situations that generate serious events are related to traffic, the appearance of living creatures, falls from height, crashes (impact of people against and by objects and, above all, electricity. The occupational safety area, the Internal Acci- dent Prevention Committees (CIPAs) and other Company areas are in charge of identifying occu- pational risks and defining preventive actions. The Occupational Health and Safety Policy en- sures that all employees have the right to post- pone any task in which they feel at risk. Copel’s Conduct Code determines that no employee may perform activities without safety conditions and without complying with the current laws or technical standards and instructions. Complaints of non-compliance with these guidelines can be made through the Whistleblowing Channel. 141 The Labor Health and Safety Policy ensures that employees and contractors have the necessary technical and safety training needed to handle risk in the workplace and in complex activities. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety Learn more about the initiatives adopted by Copel to promote a culture of occupational health and safety: Internal Accident Prevention CIPAs in Action: this app enables Occupational Safety Health Man- Commissions ( Comissões Internas de Prevenção de Acidentes - by Copel establishments with the CIPAs): distributed registration of Near-Misues, CIPA agement ( minutes, miscellaneous records, flow of submission and consulta- tions, accident control, forms and Gestão de Segurança e Saúde no Trabalho - purpose is to define the procedures GSST): its and detect the risks and preventive Copel Video Monitoring ( Vídeo VMC): Monitoramento Copel - operational teams from Distribution use images from cameras installed in the fleet vehicles to expand safe- purpose of identifying work-related regulations, sector scoring and actions involved in operational tasks ty inspections and improve risks and drawing up risk maps and meeting schedule. with the help of the workforce in the accident prevention mechanisms. a plan to put in place preventive improvement of processes. actions. During their participation in Safety Minute: weekly meetings these committees, the employees held by the workforce to discuss Preservando a Vida (Preserv-ing discuss issues related to health and information relevant to occupation- Life) (PPV) Program: in-field safety and, when necessary, refer a al safety. situation for analysis. The requests resulting from these discussions are Risk Detection: facilitates the communicated to the work safety registration of accident risks inside ar-eas, which forwards the issue to and outside and helps those the appropriate area. The CIPAs set involved in work safety to plan, ex- monitoring of technical and safety procedures during the performance of activities of employees and contracted parties. In 2022, the actions based on the observation and behavior of the teams was enhanced up annual Internal Accident Prevention Weeks ( Semanas Internas de Prevenção de Acidentes SIPATs), when lectures on topics - related to health and safety are offered by both employees and outsourced professionals. ecute, and monitor the mitigation with PP+V. measures that have been planned and adopted. Golden Rules: underline the im- portance of safe behavior in the de- velopment of operational activities. The rules are inviolable and show absolute respect for life. Electricians’ Rodeo: to foster the culture of work safety and the job performance development of electricians, Copel encourages them to get involved in the Electri- cians’ Rodeo, a nationwide contest for professionals of the electricity concession operator to reinforce safety rules and showcase their skills and talents. Safety Months: meetings held with each steering committee, in which everyone focuses on putting in place preventive actions. 142 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety Risk Management Program - RMP Safety training GRI EU 16 The Labor Health and Safety Policy ensures employees, training is provided within the that employees and contractors have the nec- company by company employees or by a essary technical and safety training needed company contracted for this purpose or to handle risk in the workplace and in com- external training at the premises of the con- plex activities. The Training area pinpoints the tracted company. For contracted employees, needs and then the employee's management the training is external, except for Safety identifies, analyzes and tracks them. Integration, which is held by Copel, prefera- Every year, an evaluation of the risks, identification of pos- documentation related to contracted parties, sible dangers, and the application of the control hierarchy including health and safety training, offering a to eliminate or mitigate them is carried out according to the complete document-based audit of the Labor, The SG3 system controls and audits all bly on the company's premises. Personal Protective Equipment (PPE) Risk Management Program - RMP. The process covers all Social Security, Land, Safety, and Occupa- This risk-appropriate equipment is provided areas of the company, whether administrative or in field. tional Medicine obligations. The contracted to company employees in accordance with parties undergo training at the start of the the Company's Technical Specifications In outside activities, the inspections are conducted by em- activities, at which time the risks and pre- by means of registration through the PPE ployees with full knowledge of the safety norms and proce- cautions related to health and safety for the and Uniform Receipt and Responsibility dures, in line with specific parameters. The workers them- performance of the tasks are addressed. Term, and are replaced whenever neces- selves can report hazards or hazardous situations related to sary due to wear, damage or other need, work through Risk Detection (Caça ao Risco), a process in Additionally, for risky activities, mandatory according to the internal standard for safety which the accident analysis group and the responsible CIPA training completion certificates are required, equipment and uniforms. The PPE must president will take the necessary measures to block it or as provided for in the regulatory standards follow the same technical specifications for improve the procedure standards for field activities. of the Labor and Employment Ministry, outsourced workers. 143 in addition to the presentation of a valid Occupational Health Certificate (Atestado de Saúde Ocupacional - ASO). For company Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety Health and quality of life GRI 403-3, 403-6 Whenever necessary, the work safety areas in an e-management system and association Copel offers a health plan managed by the of the operations, together with Copel (Hold- with complementary exams to monitor and Copel Foundation under a self-management ing Company), change the technical specifi- control exposure and aptitude. The company system, whose monthly fees are shared cations of their PPE to make them more ef- employees have access to services either (Copel pays 80% of the amount for em- fective. According to Regulatory Standard-10, through calls, as in the case of absenteeism ployees hired until 2015; and 50% for those the federal employment regulation, employ- tracking or external legal exams, or through hired after 2015). ees have the right to refuse work situations personal requests made to management that may lead to illness, injury or accidents. or through doctor’s statements and other The accredited network throughout the At Copel, all employees are protected from medical certificates. All Copel employees are state of Paraná offers medical, dental, and reprisals by the Occupational Health and covered by a health and safety system. pharmaceutical care, and health plans in oth- Safety Policy and the Code of Conduct. er states, including outpatient, hospital, and Legal exams and assessments ness of the importance of periodic exams therapy services. The pharmaceutical and GRI 403-3, 403-6 was conducted in 2022 to increase engage- drug program guarantees, in addition to A campaign to encourage and raise aware- obstetric care, and psychology and physical ment and commitment to health. Through discounts, subsidies for treatments. Employees undergo not only the legal exams a health dashboard, the managers keep but also special exams in cases of suspected track of the health of their team. The health In addition to periodic medical exams, illnesses caused by (or with the potential to information of employees is handled only the Company includes an additional stage interfere in) their work activities. Whenever a by health professionals, with no sharing of of preventive exams to check for heart, restriction is found, an action is taken in com- sensitive information with external parties, gynecological, prostatic, colorectal and bination with local management to minimize in line with the General Data Protection Law, ophthalmological diseases, according to the the exposure to a certain risk (either through Code of Ethics and company bylaws. employee’s profile, free of charge. 2022 conducting a campaign to increase engagement and commitment to health its elimination or other forms of control). Combined actions are also created on a con- ment-based audit, exam indicators, issu- tinuous basis with occupational safety and ance of occupational health certificates, risk analysis professionals and are recorded and user satisfaction. The quality is monitored through a docu- 144 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety The chemical dependency care program the Copel Foundation, this treatment is free provides specific medical treatment for em- of charge. Consultations are held online, ployees, including inpatient and outpatient with psychologists, and a 24-hour hotline is medical and psychological care. available for emergency consultations with In 2021, the Plenamente (Fully) Program professionals guides the employees in situa- offered a series of lectures focused on the tions that are considered high-risk. employee's mental health, given all the tur- a specialized team. A team of specialized Centers for primary care GRI moil caused by the COVID-19 pandemic, and Copel also offers, annually at no cost to the 403-3, 403-6 psychological care. One of the existing ini- employee, flu vaccinations, and holds cam- tiatives that was integrated into Plenamente paigns on important topics related to general was the Equilibramente (Balanced) program, health, such as yellow September, pink Octo- for the treatment and monitoring of eligible ber and blue November, encouraging the use Through the Copel Foundation, the company has three beneficiaries with emotional disorders such of the health plan's associated network. units of Primary Health Care (Atenção Primária à Saúde - as anxiety, depression, and others. Linked to 145 APS), where employees and their dependents receive care without co-participation for the purpose of monitoring and prevention. The first main office was opened in 2021 at Copel's headquarters in Curitiba (PR). Two more units were inaugurated in 2022 in Maringá and Londrina. The PHCs stand out as a great advance in health pre- vention and promotion, operating in the areas of mental health care, diabetes, hypertension, dyslipidemias, wom- en's, children's, and elderly people's health, and smok- ing for prevention and treatment, with multidisciplinary follow-up by family doctors, nursing staff, dentists, nutri- tionists, and pharmacists. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Human Capital | Healthy and Safety WORK-RELATED INJURIES1 GRI 403-9, SASB-IF-EU-320A.1 Fatalities in work-related accidents Company employees Outsourced workers2 Number Rate 0 0.00 3 0.18 High-consequence work-related injuries (excluding fatalities) Company employees Outsourced workers Number Rate 0 0.00 3 0.18 Recordable work-related injuries Company employees Outsourced workers Number Rate 20 1.84 11 2 6.59 1. The indexes were calculated for every 1,000,000 hours worked, and no worker was excluded from the calculation. 2. Workers who are not employees but whose work and/or workplace is controlled by the organization. Work-related ill health GRI 403-10 The number of cases of recordable work-related ill health Employees Outsourced workers1 3 0 1. Workers who are not employees but whose work and/or workplace is controlled by the organization. Occupational health and safety training GRI EU18 Total of employees, contracted and subcontracted workers Contracted and subcontracted employees undergoing safety training % of contracted and subcontracted employees undergoing safety training 2022 14,449 9,672 66.94% Workers covered by an occupational health and safety management system1 GRI 403-8 Number Percentage Employees and workers who are not employees but whose work and/or workplace is controlled by the organiza- tion, who are covered by such a system. Employees and workers who are not employees but whose work and/or workplace is controlled by the organiza- tion, who are covered by such a system that has been internally audited. Employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by such a system that has been audited or certified by an external party. 14,449 14,449 100% 100% 123 0.01% 146 1. At Copel Distribuição, no workers were excluded from this disclosure. In the other operations, it was only the company employees, given that the outsourced employees are covered by the contractor's risk management program. See more For more information about health and safety, go to the Sustainability Portal Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital Intellectual Capital SDG Capitals 7 8 9 11 13 INDIRECTLY Beyond a regulatory requirement in the ing Copel Volt, whose first edition in 2021 energy market, investment in innovation has was attended by more than 200 entrepre- gained importance in Copel's new strategic neurs from five continents. A total of five map. As such, this topic is no longer a matter startups were selected for projects in devel- just for the research & development (R&D) opment - three Brazilian, one Asian and one areas and has now become a company-wide European. In the second edition, for which pursuit. Copel sees clearly the importance of applications were finalized in early 2023, the innovation to remain active and strong in the number of applicants rose to more than 280 markets where it operates and to promote and the number of participating countries the wellbeing and development of society. jumped from 43 to 52 (see the box). With systematic actions in open innovation in partnership with other organizations and companies, the Company has come even closer to the universe of startups by launch- 147 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital This experience also created the opportunity The disclosure of an innovation theory, in to expand its activity into the universe of which the Company supports its interest in new solutions in the energy segment, which becoming an Energytech Platform and fo- culminated with the creation of a venture cus on digital solutions that impact its cus- capital program to foster new businesses. tomers and reinforce its role in the energy Copel Venture was set up as a fund, with sector is also part of the effort to enhance a BRL 150 million contribution from Copel, the innovation structure at Copel. which will invest in creative ventures in areas such as renewable energy, particularly green hydrogen, efficiency in asset manage- ment, smart grid and smart cities, process- Copel Ventures' areas of interest es and digitization, and others (see table below). Through the fund, Copel becomes one of the first state-run organizations to use this financing instrument, which will al- low a long-term relationship with innovative businesses that may even become profit- able for the Company in the future. Copel has opened a tender to choose a specialized partner to manage the fund. Renewable energy Energy as a service (customer journey) Asset management Smart grid/cities Innovative processes 148 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital Copel Volt: energytechs and solutions for the future The program launched by Copel in 2021 screening involved defining the 30 start- were chosen to participate in a three-day brings the Company closer to startups from ups that made their pitches and had their bootcamp, where they outlined their busi- all over the world, expands the use of open ideas assessed by a panel of experts and ness plans and financial needs with the innovation, and aims to speed up the devel- professionals from Copel. Fifteen of them help of mentors. opment of new products and services. The participating companies submitted ideas for one of the eight challenges proposed by Copel, such as asset and facility manage- ment, clean energy and new energy matri- ces, innovative internal processes, among others. Copel’s professionals are trained to select and monitor the selected enterprises The five finalist initiatives of the first edition Move: a Brazilian startup of technological solutions for management and control of electric vehicle re- charges. It is involved in the expansion of Copel's electric highway in Paraná (see more on page 151). and undergo training on the use of open CUBi: an energy governance platform for industries that monitors data, analyzes results and offers ener- innovation methodologies, mentoring, and gy saving suggestions. collaborating with startups. The five finalists receive mentoring and financial support to develop their ideas and will be able to gener- ate new business models (see the selected candidates in the box). With over 200 applications from entre- preneurs from Brazil and abroad, the first NEX Energy: startup from Curitiba with the mission of helping companies save on their electricity bill through clean energy via the rental of a 100% renewable plant from Copel, solar or wind power. The initiative is aimed at enterprises that spend between BRL 1,000 and BRL 20,000 on electricity. Prescinto: Indian startup uses AI to identify and suggest actions to improve generation performance in clean energy plants. Watt-is: startup from Portugal that translates smart metering data into valuable information to improve the consumer experience, especially in terms of efficient energy use. 149 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital Copel Volt: Second edition Investment in Research and Development (by topic) 2021 % in total in- vestments 2022 % in total investments Also in 2022, Copel launched the second edition of Copel Volt, which will select another five innovative solutions to receive mentoring, support, and financial investment to leverage their ideas. In all, BRL 1.8 million will be made available for the project (startups in Seed, Series A, and Series B funding rounds). The challenges launched are aimed at the future of energy, with a focus on energy transition, such as green hydrogen solutions and energy storage, electromobility, customer relationship, digitization, and others. The challenges are also aligned to the areas of interest of Copel Venture and are targeted at finding ideas that have synergy with the Energy storage BRL 2,824,659.65 Energy efficiency BRL 7,351,989.21 Alternative sources of electricity generation Management of Ba- sins and Reservoirs BRL 2,170,382.58 BRL 371,068.65 3% 9% 3% 0% BRL 249,164.53 BRL 5,021,355.08 BRL 0.00 BRL 87,414.42 Environment BRL 6,952,157.43 9% BRL 3,870,352.29 Measurement, billing and preventing com- mercial loss Operation of electricity systems Electricity systems planning Oversight, control and protection of electrici- ty systems BRL 1,174,690.00 1% BRL 1,079,553.04 BRL 7,424,135.32 9% BRL 9,404,677.85 BRL 12,441,896.39 15% BRL 12,011,135.89 BRL 10,557,231.21 13% BRL 8,669,288.73 performance or needs of the four segments in which Copel Security BRL 7,208,946.81 9% BRL 5,293,328.60 Quality and reliability of electricity services BRL 8,183,922.37 10% BRL 24,957,441.56 Other BRL 13,808,435.05 17% BRL 24,014,931.57 RD&I management BRL 909,355.98 1% BRL 174,331.41 Total BRL 81,379,097.52 100% BRL 94,832,974.97 100% ~0% 5% ~0% ~0% 4% 1% 10% 12% 9% 6% 28% 25% ~0% operates. The startups selected will be able to use the structure of the business and the competencies of collaborators to enhance their models, will be given access to a network of innovators in the energy sector and will gain visibility, as well as other benefits. 150 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital | R&D Investments R&D Investments The investment in R&D as a regulatory tion of financial statements. In 2022, Copel requirement is defined by Federal Law invested BRL 94.8 million in this research, 991/2000 and monitored by the Brazilian of which BRL 60.4 by Copel Distribuição and 9 , Electricity Regulator (Aneel1) within the BRL 34.4 million by Copel Geração e Trans- scope of the Research & Technological De- missão. The monitoring of R&D programs velopment Program for the Electrical Power and their budget execution can be checked Sector (ProP&D2). Companies in the sector internally in the Innovation Portal, which is must allocate part of their net operational used as a support tool for project managers. Patents and Registrations 42 requests for registration filed at the National Industrial Property Institute (INPI3) in 2022 5 industrial patents granted 14 software registration certificates 9 industrial design registration certificates 1. Agência Nacional de Energia Elétrica 2. Programa de Pesquisa e Desenvolvimento Tecnológico do Setor de Energia Elétrica 3. Instituto Nacional de Propriedade Industrial 4. Receitas Operacionais Líquidas reservoirs, energy efficiency, and quality and COPEL GeT revenue (ROL4) to the activity. ProP&D proposes several lines of research, such as alternative sources of electricity generation, management of basins and reliability of services, among others. Copel develops projects along these lines, always linked to its strategy, based on demands that arise from day-to-day problems, such as the need for new technologies or the construction of low-cost generation projects. Every project has its own schedule with deadlines for completion regulated by Aneel. In the subsidiaries, specific R&D areas support the management of the initiatives, including initial engagement, management 151 of monthly payments, and monthly verifica- INVESTMENTS IN R&D (IN BRL MILLION) GRI EU8 32.6 40.7 34.4 COPEL DIS 2020 2021 2022 50.5 40.7 60.4 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital | R&D Investments Major R&D projects in 2022 GRI EU8 Generation Copel GeT has an area dedicated to man- management committee. Every two years, Copel has the largest number of Research & agement and support in the development a forum to present and discuss technical Development Projects regulated by Aneel, of scientific/technological projects related papers is also held at the subsidiary. and also supports the development of stan- to the Research and Technological Develop- ment Program for the Electricity Sector, an 991/2000. Reg- obligation defined by Law 9 , ulated by the Brazilian Electricity Regulatory (Aneel), the program sets an Agency investment of 1% of the Net Operating Distribution dards for the use of electric vehicle charging stations in buildings for collective use. Copel invests in the future of the energy The Company, as a pioneer in the electric sector as an essential element for the charging area, implemented the country's Company's long-term market positioning, first electro-highway, the Paranaense Eletro- Revenue (NOR) in R&D projects by the particularly in the distribution segment - via in 2018, a 730-kilometer corridor on the concession operators, permit holders and which is changing fast and facing challenges BR-277, which connects the Port of Parana- authorized entities in the electricity sector. related to electric mobility and smart cities, guá to Foz do Iguaçu, and offers 12 electric which at the same time are opportunities to charging stations. In 2022, Copel expanded The R&D projects developed by the com- add value to the services offered. the vehicle charging stations to the BR-376 pany are aimed at direct investments in and BR-101 highways in a circuit from the activities to create new equipment, materi- A series of investments made by Copel DIS outskirts of Londrina in northern Paraná als, techniques or methodologies. have been based on a high level of inno- to Joinville in Santa Catarina, connecting vation, such as the Smart Electrical Grid both states. As such, Copel's total number To foster the sharing of ideas, knowledge, program, automation based on models used of charging stations has reached 23 in an and the dissemination of good practices in the United States and Japan and that may expansion that was developed in partner- among employees, Copel GeT maintains integrate in the future distributed micro- ship with the startup Move, selected by the Inov+ GeT. Through this initiative, they can generation services, storage technologies, Copel Volt program. Besides the expansion register proposals that are evaluated by a public lighting, and the supply of electric in the number of electric charging points, cars (see more on page 15 ). 0 the project with Move is technologically inte- 152 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Intellectual Capital | R&D Investments grating all the electrical points into a single based on their practices of innovation, sus- management system. As such, they will tainability (ESG), and positive actions taken be centralized on a single platform, which during the pandemic. will keep track of the chargers available, the amount of energy provided by each and the Copel is also coordinating an international carbon dioxide emissions (CO2) not emitted group that brings together energy utilities to by using electrical power instead of fossil interconnect the electric roads in Brazil (PR, fuel. The system will also be ready for the SC and RS), Paraguay, Uruguay and Argentina. 1st ultra-fast charger was installed in Curitiba 23 total of charging stations future sale of this type of supply. Also in 2022, Copel introduced the first ultrafast charger in Curitiba. With capacity to connect three vehicles simultaneously to the station. This milestone led to Copel being recog- nized in a survey by the Mobility publication Hackathon Copel 2022 of the O Estado de São Paulo newspaper The Copel DIS project brought together 40 competing teams in an innovation marathon at the Paraná and the Connected Smart Cities platform as Engineering Institute under the slogan “Ideas that Move the Future.” Aimed at undergraduate and graduate one of the one hundred companies that will students from Paraná-based universities, the Hackathon's objective was to propose the dispute of ideas most influence the mobility sector in 2021. and solutions for improving the company's processes. The challenge proposed by Copel in the first edition The nomination was the result of consulta- was focused on the customer under the topic: How to leverage the benefits of the Smart Electrical Grid tion with 30 professionals who work in the Program. The winning team will intern at Copel DIS in 2023 and take part in the implementation of the segment and who elected the companies winning project. 153 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission Infrastructure Capital SDG Capitals 7 8 9 11 INDIRECTLY Generation and Transmission GRI EU1, EU2, EU23 Copel operates 54 of its own plants and In 2022, the Jandaíra Wind Complex went 2018, the share of energy generated by wind has equity in 11 other plants, 24 of which into operation two years ahead of sched- turbines in the Company's electricity matrix are hydroelectric power plants, 38 wind ule. This venture underpins the sustainable rose from 6% to 17%, making GeT the 7th farms, two thermoelectric and one solar growth strategy and the commitment to cre- largest wind power generator in Brazil. power plant, with a total proportional in- ate value with investments in projects that stalled capacity of 6,706.4 MW and a guar- lead to the diversification and expansion of To achieve its growth targets of 2 giga- anteed output of 3,164.7 average MW. the company's portfolio through renewable watts of generation by 2030, with 100% To comply with important strategic and energy sources. renewable generation and an increased share of alternative sources in its electric- sustainability guidelines established for the Two wind power complexes were also ity matrix, the company needs to advance generation business, the Company’s main acquired: Aventura and Santa Rosa & Mundo in the efficient management of its in- goal is to increase the share of alternative Novo, both in Rio Grande do Norte (RN). In stallations and its search for operational renewable energy sources in the energy ma- combination with the investments made in efficiency. In 2022, Copel began studies trix in a profitable and sustainable manner, 2021, 537.2 MW in wind power have been to divest non-renewable power plants: the reaching 100% by 2030. added in the last two years by Copel. Since Araucária thermoelectric power plant and the Figueira thermoelectric power plant. 154 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission NET POWER GENERATION (GWH)1 GRI EU2 New Wind Farms Commissioning in 2022 Jandaíra Wind Farm Complex 4 farms 90.1 MW of installed capacity Acquired in 2022 (added to the Matrix in 2023) Aventura Wind Farm Complex 4 farms 105.0 MW of installed capacity Santa Rosa & Mundo Novo Wind Farm Complex 5 farms 155.4 MW of installed capacity See more The complete list of Copel’s power plants is in the Hydropower plants2 Wind farms Solar station Thermopower plants3 Total 2020 11,232.5 2,307.5 - 994.6 14,534.6 2021 15,798.1 2,691.44 -5 1,784.64 20,274.1 2022 23,682.2 2,901.3 4.8 204.26 26,792.5 1. The indicator takes into consideration the amount generated by Copel GeT operations and by the plants that Copel Holding Company has direct equity in: Elejor, Dona Francisca, Voltalia and Solar Paraná. 2. The hydraulic power plants with installed capacity greater than 50 MW, correspond to the largest slice of the total energy generated by Copel. The total generated also includes the Elejor, Foz do Chopim, and Dona Francisca power plants, in volumes that are proportional to Copel's share. 3. The increase in thermoelectric generation in 2020 and 2021 is associated with below average rainfall that caused ONS to require more generation from the Araucária thermoelectric power plant. The amounts informed also correspond to Copel's share. 4. The results from wind and thermoelectric power in 2021 were corrected because the values were published inverted in the previous report. GRI 2-4 (5) Data were erroneously published in 2021. There was no production. INSTALLED CAPACITY (MW) GRI EU1 Hydropower plants Wind farms Solar power plants Thermopower plants Total 2020 5,340.6 645.8 0 413.1 6,399.5 2021 5,369.4 832.7 1.1 413.1 6,616.3 2022 5,369.4 922.8 1.1 413.1 6,706.4 BREAKDOWN OF GENERATOR COMPLEX, BY INSTALLED CAPACITY GRI EU1 80% 13.76 % 6.16 % 155 Management Report HYDROPOWER WIND THERMOPOWER Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission Operational efficiency in genera- tion and transmission GRI 3-3 More than a commitment, operational effi- development projects, with technology as a operation. Even in the recently built and smaller ciency is one of Copel's strategic goals for lever to optimize and transform the busi- facilities, such as SHP Bela Vista, the availability cutting costs while concurrently enabling the ness, such as, for example, the digitization indicators are above 90%, matching the Company to reach excellence in operation. of operation and maintenance processes. performance of Copel GeT's main plants. With Copel GeT has areas dedicated to the man- Efficiency of plants agement of operational efficiency based on GRI EU6, EU11, EU30 the guidelines, targets and goals defined installed capacity of 29.81 MW and located between the municipalities of Verê and São João, Bela Vista had its first three generating units start up in 2021. by Copel's senior management in Strategic Power generation is regulated and is still Wind generation depends on the availability of wind Planning and in line with the Management dependent on weather conditions for the turbines (affected by operation and maintenance) Excellence Model (MEG) of the National assurance of delivery volumes. and the availability of wind, which can vary over Quality Foundation (FNQ). The monitoring in- time. The figures also include the wind power plants dicators are established in the Management The volume of hydropower plants that have located in the northeast region, which are linked to Agreement executed by the Holding Compa- an installed capacity of more than 50 MW Copel's special purpose company. The availability ny, Copel GeT and its departments. Certifica- is defined by the National System Operator factor for wind power was 95.16% in 2022. tion processes also support this monitoring. (ONS) in accordance with the state of the Currently, Copel GeT has an Integrated reservoirs and the demand of the electrical The Thermopower Plant of Figueira went into the Management System with ISO 9001, 14001 system. Therefore, the amount of energy testing stage in 2022. The Electric and Gas plant of and 45001 certifications in the Operate and to be produced is not defined by Copel. In Araucária (UEGA) Availabil-ity: 71.30% in 2022; Maintain Generation Infrastructure process- 2022, the availability factor of the hydropow- 76.19% in 2021; and 98.69% in 2020. Efficiency of es; and ISO 9001 in the Operate and Main- er plants was 92%, compared to 94% in 7,559.93 BTU/kWh in 2022; 7,322.95 BTU/kWh in tain Transmission Infrastructure process. 2021 and 91.4%.in 2020. 2021; and 7,321.66 BTU/kWh in 2020. The search for efficiency is also part of Availability is the benchmark used by the the open innovation program (see more industry to indicate the percentage of time in Intellectual Capital) and in research and that the generating units are available for 1. Modelo de Excelência em Gestão 2. Fundação Nacional da Qualidade 3. Operador Nacional do Sistema 156 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission Operation and maintenance (O&M) of the plants To avoid or limit the consequences of functional and other failures (health, environ- ment, safety, and costs), the operation and maintenance activities in the plants abide by a structured process of cause and effect analysis and definition of management policies. Meetings to analyze the occurrence of failures and applications that register and control the O&M routines such as team and material management, equipment registra- tion, analysis of occurrences, and calculation of equipment performance indicators, as AVERAGE AVAILABILITY FACTOR OF THE PLANTS (%) GRI EU30 93 94 92 2020 2021 2022 New operations hub well as others, are part of the management. The new Generation and Transmission Oper- in the 1950s, and has since then invested in These activities are benefiting from the digi- ation Hub (Centro de Operação de Geração e remote operation processes and technologies tization of the Company's processes, which Transmissão - COGT) facilities were inaugurat- for all its assets. Besides the upgraded phys- will continue to be stepped up until 2030. ed in 2022 in Curitiba. The teams that work at ical areas, the new digital system will allow the Hub are in charge of commanding, remote- the Generation and Transmission teams to be ly and centrally, 24 hours a day, the dozens of integrated and optimize the operation in all the power plants and substations and thousands of states where it is available. It also integrated kilometers of power transmission lines. the different supervision and control platforms Copel was a pioneer in the remote operation of centralized data storage, increasing efficiency, power plants in Brazil, started by the Company quality, and safety. of power plants, lines, and substations and 157 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission Transmission Transmission efficiency TECHNICAL TRANSMISSION LOSS (%) GRI EU12 This sector is primarily aimed at providing The main efficiency indicator in the transmis- services for the transport and transforma- sion segment is the accounting of technical 2.71 2.74 2.82 2020 2021 2022 tion of electricity and is responsible for the losses, i.e., those that occur in the transport construction, operation and maintenance of of energy to the "Center of Gravity", where it substations, as well as for the lines that will is split into 50% for generators and 50% for be used for energy transmission. energy consumers, in accordance with the terms of the current regulations. The Company fully owns and participates in transmission concessions in operation, In 2022, the indicator was 2.82, maintaining corresponding to 9,685 km of transmission the previous year's rate, which was 2.74. lines, with transformation power of its sub- The technical losses can be explained by stations in the order of 20,462 MVA (mega- a growth in power generation, restrictions volt amperes). GRI EU4 in the transmission system and in the installation of new equipment in the sys- Annually, the transmission concessions in tem. Another cause is the concentration of operation generate a Permitted Annual Reve- generation at points far from the load center, nue (PAR) of BRL 1.39 billion for Copel GeT, which causes a significant variation in ener- in proportion to its stake in the ventures. gy exchange. Investments in generation and transmission for 2023 Generation: BRL 117.2 million Transmission: BRL 103.7 million See more The complete list of Copel's transmission lines is in the 158 Management Report 9,685 km of transmission lines 20,462 MVA transformation power of substations Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Generation and Transmission Transmission work GRI EU23 In addition to the projects acquired through • auctions held by Aneel, Copel GeT has Authorizing Resolution (amended by Authoritative Resolution 8 543/2020 , • Authorizing Resolution 9 564/2020: , implementation of reinforcements in projects that derive from authorizing resolu- 8,951/2020): refurbishment of the 230 the 230 kV Sarandi substation with an tions aimed at expanding and improving the kV Pilarzinho-Santa Mônica and Bate- investment of approximately BRL existing set up. A few of them are: ias-Pilarzinho transmission lines and 21.0 million and a PAR of approx- • Authorizing Resolution 7 515/2018: , implementation of reinforcements in the implementation of reinforcements in imately BRL 3.4 million, from the the respective 230kV Santa Mônica, startup, which is scheduled by Aneel for Bateias, and Pilarzinho substations. The June 2023. 230 kV Cascavel, Ponta Grossa Norte, total investment amounted to BRL Umbará, Maringá and substations, with 32.5 million and a PAR of approxi- • Authorizing Resolution 9 741/2021: , an investment of approximately BRL mately BRL 4.2 million as of the start refurbishment of the 230 kV trans- 70.0 million and a Permitted Annual of commercial operation. The work on mission line Campo Comprido - Santa Revenue (PAR) of approximately BRL Bateias-Pilarzinho was completed four Quitéria, with an investment of 9.5 million, from the startup. The work months ahead of schedule, in 2022, approximately BRL 4.3 million and a was delivered before the regulatory and that of Pilarzinho-Santa Mônica is PAR of approximately BRL 577,700 deadline, between 2021 and 2022. under way with completion in the first from the startup, which is scheduled by half of 2023. Aneel for August 2023. • Authorizing Resolution 9 219/2020: , implementation of reinforcements in • Authorizing Resolution 10 , 688/2021: implementation of reinforcements in the Annually, the transmission concessions in operation generate a Permitted Annual Revenue (PAR) of BRL 1.39 billion for Copel GeT, in proportion to its stake in the ventures. the 230 kV Guaíra substation with an 230 kV CIC with an investment of investment of approximately BRL approximately BRL 24.4 million and a 38.8 million and a PAR of approx- PAR of approximately BRL 3.7 million, imately BRL 6.0 million, from the from the startup, which is scheduled by startup, which is scheduled by Aneel Aneel for April 2024. for April 2024. 159 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Distribution Distribution Copel is responsible for distributing power The company maintains installations at the to more than 5 million consumers in 1,148 13.8 kV, 34.5 kV, 69 kV and 138 kV voltage locations in 396 municipalities in Paraná and levels, manages approximately 208,000 km in Porto União (SC). GRID MARKET GRI EU3 of distribution networks and has 389 auto- mated substations, with an installed capaci- ty of 11,800 MVA. Number of consumers Energy sold (GWh) Grid Market (TUSD) Captive Market Free market 2021 2022 4,926,608 5,011,555 % 1.7 2,318 2,629 13.4 Supplies for concession operators 7 7 Grid market 4,928,933 5,014,191 - 1.7 2021 19,312 11,531 932 2022 19,370 12,244 % 0.3 6.2 925 (0.8) 31,775 32,539 2.4 more than 5 MM consumers in Paraná and Santa Catarina 389 automated substations CAPTIVE MARKET GRI EU3 Energy sold (GWh) Residential Industrial Commercial Rural Other Total 160 2022 % 21/22 2020 7,910 2,314 4,172 2,451 2,333 2021 8,068 2,275 4,149 2,461 2,359 8,212 2,102 4,294 2,357 2,405 19,180 19,312 19,370 1.8 -7.6 3.5 -4.2 1.9 0.3 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Distribution Operational efficiency in distribution GRI EU6, EU12, EU28, EU29 Copel DIS results are historically more effi- In 2022, the global losses represented 9% cient than the parameters set by Aneel, with of all the energy injected into the distribu- advances achieved in previous years. In 2022, tor's system, of which 5.7% for technical The concession agreements signed by the rates showed a slight increase because losses, 1.9% for non-technical losses. Tech- Copel DIS and Aneel set out clear rules for of the higher number of adverse weather nical losses refer to the portion inherent to maintaining operational efficiency with pre- events, which resulted in more damage to the transport process, voltage transforma- cepts on tariffs, regularity, continuity, safety, the power grid. Therefore, the frequency of tion, and measurement of energy in the util- modernity and quality of services and of the power supply disruptions registered a rate ity's grid. The non-technical losses, in turn, service offered to consumers. of 5.29 and the duration of interruptions a derive from energy theft, measurement er- rate of 7.98. Although higher as compared rors, errors in the billing process, consumer Operational efficiency and the quality of to 2021, these results are 22% and 13%, units without measurement equipment, and energy distribution are evaluated using the respectively, below the limits set by Aneel. others. There were also 1.4% losses in the indicators SAIDI (System Average Interruption basic grid, which are external to the distribu- Duration Index) and SAIFI (System Average The efficiency is also measured by the tion system of the concession operator and Interruption Frequency Index). The indicators indicators of energy loss in distribution: are mostly technical in origin. set by Aneel, which also sets the limits to the difference between the electricity ensure the quality and efficiency of the elec- acquired by the distributors and that billed tricity sector. to their consumers. Copel DIS’ efficiency results are historically higher than the parameters set by Aneel, with advances achieved in previous years. Efficiency indicators1 GRI EU28, EU 29 2020 2021 2022 SAIDI Copel SAIDI Aneel SAIFI Copel SAIFI Aneel Loss rate (%) GRI EU12 2020 2021 2022 7.81 7.20 7.98 9.78 9.28 9.19 5.55 4.76 5.29 7.38 6.84 6.80 Basic grid Technical losses - Distribution Non-technical losses - Distribution Global losses - Distribution 1.6 5.9 1.8 9.3 1.5 5.8 1.9 9.2 1.4 5.7 1.9 9 1. For the purpose of the concession agreement until 2021, the internal SAIDI and SAIFI indicators were considered as the target of the concession agreement - which encompass only the events that occurred in the distributor's assets, excluding transmission line events. As of 2022, there is no difference, and the SAIDI and SAIFI cover all occurrences, regardless of origin, including losses in the basic grid that are external to the utility's distribution system and are of an imminently technical origin. The purpose of these indicators is to improve the quality of the service provided to the consumer. 161 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Distribution Energy efficiency program GRI EU7 Federal Law 9 , 991/2000 and Aneel will be summoned in early 2023 to sign the Regulatory Resolution 920/2021 set the use contractual instrument. of funds in the Energy Efficiency Program aiming to increase the efficient use of electricity in all sectors of the economy. The PEE COPEL 006/2022 call-to-tender for proposals was also published and was open to receiving proposals for Energy Ef- Copel DIS issues every year a bid notice for ficiency projects, including consumer units consumers to submit project proposals that served in the concession area, belonging demonstrate the importance and economic to the following typologies: industrial, res- feasibility of improving the energy efficiency idential (community areas in condomini- of equipment, processes and end uses of energy. Industrial, residential (condomini- ums), public power, rural, public services, public lighting. The period for receiving um), rural, commercial and service consum- proposals started in December 2022 and ers, public authorities, public lighting and ended in March 2023. public services may participate. The projects aimed at replacing equipment A total of 14 projects were selected in 2022 for energy-saving alternatives are to receive from the bid notice for projects PEE COPEL a total of BRL 30 million to replace light 005/2021 from among industrial, residential bulbs, household appliances, industrial ma- (condominiums), and public lighting consum- chinery, and other equipment powered by ers. In the area of street lighting, the munic- electricity, provided that they replace similar Energy Efficiency 2020 2021 2022 ipalities of Jandaia do Sul, Mallet, Porecatu, old ones, bringing gains in efficiency in elec- Energy Saved (MWh/year) 7,064.71 17,476.67 22,572.26 São José dos Pinhais, and São Mateus do tricity consumption. Sul had projects approved. The consumers Energy avoided (tCO2/year)¹ Demand Reduction at Peak (kW) 621.69 1,537.95 2,674.81 776.30 2,607.27 2,682.73 ¹Conversão de MWh e tCO2 conforme anuário Relatório Síntese do Balanço Energético Nacion- al – BEN, disponível em: https://www.epe.gov.br/pt/publicacoes-dados-abertos/publicacoes/ balanco-energetico-nacional-ben 162 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Distribution Investments in distribution EU23 Besides making the grids more robust, the largest Smart Electrical Grid program in Paraná Trifásico increases the interconnec- Brazil, following the model used in countries In a record year in terms of investments in tion between them, ensuring that the ser- like the United States and Japan. It dynam- energy distribution, Copel DIS allocated BRL vice is swiftly reestablished in the event ically integrates the actions of all users 1.88 billion in infrastructure for lines, substa- of a power failure. Copel DIS uses in this connected to it, whether they are consumers tions and physical facilities to improve and up- process automated equipment and cables or system operators. One of its advantages is grade the electricity grid in Paraná and boost with innovative technology that includes a reduction in the power outage time caused the quality of the services provided, as well insulating protective covers and reinforced by bad weather and other factors external to as expand the service network for customers resistance levels. and consumers. The investments ensure ac- the system. Therefore, when the network re- pair requires the intervention of technicians, cess to electricity for the consumer and the It also modifies the distribution grid layout the Distribution Operation Hub pinpoints the municipalities, an input with a positive impact by removing them from hard-to-access exact location of the power failure. on the population's quality of life and on local sites and placing them roadside, which economies, attracting new investments in greatly increases the quality of the supply Copel DIS will reach, in the three phases commerce and industry. and provides a major cut in Operation & of the program, 1.6 million consumers with Paraná Trifásico phase of implementation began in April Maintenance (O&M) costs. an investment of BRL 820 million. The first This long-term project is an important 2021, with completion scheduled for April Launched in 2019, this program accounted for initiative to ensure quality infrastructure for 2023, and includes 462,000 consumers. the installation of 10,500 km of three-phase Paraná's agribusiness sector and energy se- In 2022 alone, the technology received an grids throughout the state of Paraná. This curity. It also provides a massive increase in investment of BRL 146 million and replaced represents 42% of the total 25,000 kilome- the supply of energy to rural areas, positive- 243,500 meters in the 73 cities where the ters scheduled for completion by 2025. The ly impacting the comfort and quality of life of project was underway. Since the beginning, investment in the period was BRL 1.2 billion the rural population. 73 municipalities have benefited from the - with a total investment forecast of BRL 2.8 upgrade, which represents 48% of the total. billion by the end of the construction work Smart Electrical Grids (SEG) (see more in Customers and Consumers). The tender to choose the company that will The process of automating Copel's distribu- be contracted for phase two has already tion grids began in 2020 and is considered been held and this stage will benefit an 163 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Distribution additional 511,000 consumers. In December operational safety by improving the commu- 2023, at the end of the third phase, another nication system; and implementing automat- 637,000 consumers will be served. ic grid reconfiguration systems. Integrated Distribution Hub ( Centro Integrado da Distribuição - CIDIS) The plan for the program is the installation In June 2022, Copel delivered three sub- of sensors and remote control devices, stations with the purpose of ramping up Since 2019, the Integrated Distribution Hub (CIDIS) centralizes all Copel's Distribution including digital meters in consumer units, system reliability, reducing occurrences operations in a single location. CIDIS to directly transmit data to the Integrated of power outages and fluctuations. The Distribution Operation Hub. In addition to new units are located in Mandirituba in the adding to the security and energy efficiency eastern part of the state; in Salto do Itararé of the system and facilities by detecting the in the northern region; and in Sapopema in areas of energy loss and theft, this smart the mid-south region of Paraná. The work re- handles the entire operation of substations and networks of medium voltage and high voltage up to 138,000 Volts in the state of Paraná, in addition to managing the teams that are sent out to render emergency ser- grid will also integrate other services in the quired around BRL 16 million in investments vices throughout the state. future, such as distributed microgeneration, and will directly serve 13,600 households. energy storage technologies, street lighting, and the charging points for electric cars. The three small substations (smart grids) are The entire management of the networks, including increases in distributed genera- Full reliability part of the Company's strategy to ensure tion, can be remotely carried out through that service quality in smaller cities will reach modern automation systems. The Smart the level offered in large urban centers, after Copel building is home to Copel DIS' largest This program aims to boost consumer trust the investments have been made in in Copel's services based on four pillars: automation. clear communication, automation, substa- on-site service branch, which has an intui- tive self-service track, as well as attendants solve the more complex cases. tion and redundancy. The completed structures operate at 34,500 volts, and each has 7 megavolt-amperes of The modern and sustainable building By integrating the four aspects, it aims to installed power. reduce the duration of power disruptions, as well as the number of times they occur; increase assertiveness in the sending of maintenance teams when needed; increase features power generation, a filling station for electric cars and rainwater collection, which demonstrates the Company's care for the environment. more than 637,000 consumers served by Smart Electrical Grid (SEG) 164 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Energy Trading Other investments Energy trading During 2022, the implementation of actions The operational efficiency indicators in the lationship Management (CRM) system to overhaul the power distribution sys- energy trading business are related to secu- registers and monitors all sales, market- tem included more than 1,800 automated rity in the trading agreements, cost cuts and ing, and customer service interactions machines and the implementation of 304 predictability, negotiation flexibility, reliability, and, in combination with the Free Market self-healing systems (automatic recovery), etc., as well as the Price Forecast Accuracy Management System (CML), expands the resulting in a drop in SAIDI and SAIFI of Index supported by the analysis and calcula- automation of processes and integration respectively around 7.9% and 5.3%. The tion of the market and credit risks of energy between platforms. budget for maintenance of the live line purchase and sale operations. (energized) and the dead line (de-energized) This process will continue to evolve after totaled BRL 94.1 million and, for pruning With approximately 1,500 customer nation- the launch of a virtual branch for free market and cutting, was BRL stood at 33.4 million. wide, Copel Mercado Livre has worked over customers in 2023. The customers will be Other ongoing projects include, for exam- the past two years to improve its manage- able to access their bills easily and quickly, ple, the implementation of the Workforce ment practices and systems and its digital manage their consumption, monitor the con- Management system (WFM), a manage- transformation. To enhance governance and tract, make requests and ask for services, ment tool for the workforce in field. customer and market service, the company send annual contractual mandatory reports, Investment forecast in distribution BRL 1.9 billion in 2023 165 applies systems and methodologies such as among other services. Tools for mapping the Management Excellence Model (Modelo and planning the free market customer jour- de Excelência em Gestão - MEG) of the Na- ney will also be available. tional Quality Foundation (Fundação Nacional da Qualidade - FNQ). Copel also continues to prepare itself to meet the new customer profile, with lower To create the best conditions to expand loads and average ticket and a large volume the customer portfolio, the digitization of of contracts as of 2024. As of this date, ac- processes has advanced significantly with cording to Order 50/2022 of the Mining and the consolidation of tools that began to be Energy Ministry, the high voltage market implemented in 2021. The Customer Re- (Tariff group A) will be totally free to buy Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Energy Trading electricity from any supplier - which should multiply the number of trading agreements. Planned investments in Copel Mercado Livre BRL 1.6 million in 2023 Currently, only consumers with a load of more than 500 kW can migrate to the free market. There is also talk of allowing this access to all electricity consumers. In addition to the larger volume of contracts to manage, this new group of customers will demand new products and services from the retailers, tailored to their needs. The investments made by Copel Mercado Livre in systems and technology will lead to more autonomy and transparency for its customers to manage their own contracts - and are also reflected in gains in process efficiency. In 2022 alone, the investment in technology and process improvements to- taled BRL 2.6 million - and an additional BRL 1.6 million is projected for 2023. 166 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Financial Capital Financial Capital SDG Financial Capital 8 In 2022, Copel registered an adjusted EBIT- of improved hydrological conditions, and and the consequent drop in the number of DA including non-recurring items of BRL the lower result from the sale of energy employees contributed to this result, even 5.5 billion, up more than 10% in relation to on the short-term market of Copel DIS. On with the 7. 1 9% salary adjustment granted. 2021. This performance was mainly due to the other hand, revenue from the supply of In October 2022, in accordance with the the better performance of Copel Geração electricity grew by BRL 272.3 million as a collective agreement. In addition, the cost of e Transmissão (GeT) in the result of the result of the adjustment of the energy tariff electricity purchased for resale dropped BRL purchase and sale of electricity in a more for Copel DIS and the growth in the number 1.4 billion, also favored by the more amena- favorable hydrological scenario in 2022, the of customers of Copel Comercialização. ble hydrological conditions. startup of the Vilas Wind Farm, the better result of Copel Distribuição (DIS) with lower Total operating costs and expenses reached The updating of the provision for allocation manageable costs, such as staff and ad- BRL 19.5 billion, 3.1% higher than in 2021, of PIS and Cofins contribution credits and ministrators, and the 0.8% growth of the with an increase in other operating costs the renegotiation of the hydrological risk billed grid market. Compagas also recorded and expenses related to the renegotiation of also affected the company's net income, results above those of 2021 and contributed the hydrological risk (GSF)* and the negative which was BRL 1.1 billion - as compared to this growth. effect of BRL 810.6 million due to the provi- with the BRL 5 billion in the previous year. sion for allocation of PIS and Cofins credits Copel's Net Operating Revenue stood at in 2022. Disregarding these effects, operat- BRL 21,927.7 million, 8.6% down from ing costs and expenses decreased by 8.8% 2021, mainly caused by the BRL 2.1 billion year-on-year. One of the efforts to increase drop in electricity supply revenue due to the the Company's efficiency was the staff and reduced dispatch at the Araucária Thermo- administrator item, which shrank by BRL 167 electric Power Plant in 2022, a consequence 524 million in 2022. The dismissal program *Note: asset constituted by the new agreement of hydrological risk under the terms of Law 13203/2015, and later amendments, derived from the recovered value of the cost with the Gener- ation Scaling Factor (GSF). The amount was changed by Aneel into an extension of the concession term, which is amortized on a straight-line basis until the end of the new concession term. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Financial Capital Investments Guided by the Investment Policy and the Once again, Copel Distribuição will absorb Investment and Innovation Committee most of the funds earmarked for the ongo- (IIC), which define the strategic guidelines ing improvement of operational efficiency for sustainable growth, generation of and cost reduction through the progress value for shareholders, and perpetuity of of important projects, with emphasis on the energy business, the schedules of the the continuity of the programs Paraná investment programs are on track. Trifásico and Smart Electrical Grids (SEG) initiated in 2021. These programs aim to Copel Distribuição represents the group's renew depreciated assets in rural areas, largest investment forecast and a large improve the quality and speed of service, part is slated for the Transformation integrate with smart cities, and improve Program. The amount invested in 2022 information via network sensing. was BRL 2,329.7 million (against a fore- cast of BRL 2,067.1 million). The annual Also worth mentioning is the investment Investments (BRL million) Consolidated Variation % 2022-2021 2021 2022 Forecast 2023 Copel Geração e Transmissão Copel Distribuição Copel Telecomu- nicações* Copel Comercial- ização Copel Serviços Holding Com- pany Other Total 494.8 472.7 (4.5) 274.9 1,623.0 1,848.1 13.9 1,878.9 54.4 2.0 0.7 3.5 0.5 - 2.6 0.1 6.2 - 2,178.9 2,329.7 - 30.0 - 77.1 - 6.9 - 1.6 1.0 5.0 20.9 2,182.3 233rd meeting of the Company's Board of of BRL 229.4 million made in 2022 to get * Copel Telecomunicações had its disposal process finalized in 2021. Directors approved in 2023 an investment the Jandaíra Wind Farm fully operating. of BRL 2,182.3 million under the program. See more investments in Infrastructure Capital. 168 See the main highlights of Copel's eco- nomic-financial performance below. The full details are included in Copel's Management Report and Financial Statements 2022 and in the Press Release 4Q22. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Economic-financial Performance Economic-financial Performance 1) increase of BRL 272.3 million in Electricity of the transmission assets, the negative Supply Revenue mainly due to the 4.90% effect of the IPCA consumer price index; the adjustment in Copel DIS' Energy Tariff for increase of the revenue reduction account Net operating revenue the consumer as of 24/Jun/2022 and to the Account for Energy Development (Conta growth in the number of Copel Comercia- de Desenvolvimento Energético – CDE) of Net Operating Revenue increased by BRL lização's customer base. the distributor, allocated to cover the cost 2,056.6 million in 2022, representing a of the CDE objectives provided by law; and 8.6% increase as compared with 2021. This 2) decrease of BRL 2,139.0 million in Electric- the effects of the reprofiling of the assets of variation was largely due to: This variation is ity Supply mostly due to the lower dispatch the Basic Network of the Existing System mainly due to: of TPP Araucária in 2022, a consequence of (Rede Básica do Sistema Existente - RBSE) NET OPERATING REVENUE VARIATION and to the drop in the sale of energy in the 2022 2021 struction Revenue arising mainly from Short-Term Market (MCP) of Copel DIS. 4) increase of BRL 224.6 million in Con- the improvement of hydrological conditions in 2021, non-recurring in 2022. 3) decrease of BRL 466.3 million in the Avail- greater investments in the energy distribu- ability Revenue of the Electrical Network tion segment. due essentially to the lower remuneration 7,510.0 7,237.7 6,051.9 5,295.1 4,828.8 3,912.9 2,176.2 1.951.6 1,259.5 712.3 2,270.9 1,676.9 89.9 142.6 473.4 322.4 169 ELECTRICITY SUPPLY ELECTRICITY PROVISION AVAILABILITY OF ELECTRICAL GRID CONSTRUCTION REVENUE PIPED GAS DISTRIBUTION FINANCIAL SECTORAL ASSETS AND LIABILITIES FAIR VALUE OF INDEMNIFIABLE CONCESSION ASSET OTHER OPERATING REVENUE Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Economic-financial Performance 5) increase of BRL 547.2 million in the Piped Non-manageable costs and expense Gas Distribution Revenue due to the new tariff adjustments and the increase in distrib- uted volume. 9,503.7 8,096.9 2,520.5 2,501.6 ELECTRICITY PURCHASED FOR RESALE POWER GRID USAGE CHARGES 939.5 506.1 NATURAL GAS AND GAS OPERATION SUPPLIES 2022 2021 1,854.9 120.4 RAW MATERIAL AND INPUT FOR ELECTRICITY PRODUCTION 6) decrease of BRL 594.0 million in Result of Sectoral Financial Assets and Liabilities due to lower energy costs in view of the improved water scenario in 2022. 7) increase of BRL 151.0 million in Other Operating Revenues resulting mainly from revenues from leasing and rentals with em- phasis on the growth in the distributor's rev- enues from sharing poles, a consequence decrease of BRL 1,406.8 million in Elec- 1) tric Energy Purchased for Resale arising of the higher volume of allocated poles/ from more favorable hydrological conditions fixing points and the contractual adjustment for the period and a drop in cost of energy defined by the General Market Price Index contracted from Itaipu. (IGP-M). Operating costs and expenses an increase of BRL 18.9 million in usage 2) charges of electrical system due mainly to 3) increase of BRL 433.4 million in natu- ral gas and input for gas operation arising from the higher acquisition volume and the increase in the price of gas for resale. 4) decrease of BRL 1,734.5 million decrease in raw materials and input for electricity production due to the lower dispatch of TPP In 2022, operating costs and expenses dropped by BRL 1,812.9 million, down 8.9% as compared with 2021. This variation is mainly due to: the higher value of the System Use Fees and Araucária as a result of improved hydrologi- the Reserve Energy Charge (Encargo de En- ergia de Reserva - EER), offset by the lower cal conditions. value of the System Services Charges (Encar- gos dos Serviços do Sistema - ESS) caused by the atypical higher thermal dispatch result- ing from the 2021 water shortage. 170 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Economic-financial Performance Manageable costs and expense due to the increase in provisions for litiga- Indebtedness tion and the impairment of the thermoelec- 1,550.9 tric power plant of Araucária (UEGA). (More The Company finances liquidity and capital 1,026.9 831.2 800.7 706.6 information in explanatory note 16.4 in the needs primarily with funds provided by oper- Financial Statements) ations and through financing to expand and PESSOAL E ADMINISTRADORES 185.0 PERDAS DE CRÉDITOS, PROVISÕES E REVERSÕES 7) increase of BRL 94.1 million in third-party transmission, trade and distribution of energy. upgrade the businesses linked to generation, services resulting mainly from increase in costs with maintenance of the electrical It is important to point out that the Company SERVIÇOS DE TERCEIROS system, customer service related to shut- endeavors to invest in projects and for this offs, reconnections and inspections, and the purpose uses financing lines available in the 2022 2021 increase of outsourced labor and commu- market, which make sense in Copel’s capital nication and data processing, offset by the structure in terms of financial leverage in drop in UEGA's values due to lower dispatch view of the return of projects. The prospects 5) decrease of BRL 524.0 million in Staff in 2022. for financing, as well as cash available, will be sufficient to meet the investment plan for and Management triggered mainly by the 8) increase of BRL 169.2 million in other the year of 2023. BRL 325.4 million drop in the performance operating costs and expenses due to a higher and profit sharing provision, the decline of amount of financial compensation for the use Copel's total consolidated debt totaled BRL BRL 148.5 million in the voluntary dismissal of water resources, losses from the deactiva- 12,454.2 million on December 31, 2022, up program provision for the period, the drop tion and disposal of assets and the update of 5.3% from the BRL 11,826.1 million record- in the number of employees and the cost the fair value of electricity generation conces- ed on December 31, 2021. The Company's reduction policy, offset by the salary adjust- sion assets. ment of 7.19% in October 2022, in accor- leverage closed 2022 at double the EBITDA and the average maturity was 3.9 years. dance with the collective agreement. 9) drop of BRL 249.4 million in construction costs caused largely by investments made 6) increase of BRL 646.2 million in Estimat- in the energy transmission infrastructure. ed Losses, Provisions and Reversals mostly 171 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Economic-financial Performance The funds shown in the following table were obtained in 2022: Income (in BRL million) Lot E financing agreement Commercial note 7th Issue of Debentures Credit note Financing Agreement Financing Agreement Financing Agreement Financing Agreement Total Financier Amount Company Copel Geração e Transmissão Copel Geração e Transmissão BNDES Debenture holders Copel Distribuição Debenture holders Copel Distribuição Banco do Brasil Jandaíra I Jandaíra II Jandaíra III Jandaíra IV Banco do Nordeste Banco do Nordeste Banco do Nordeste Banco do Nordeste 33.6 1,000.0 1,500.0 750.0 11.2 29.6 33.9 33.7 3,392.0 Payments made in the year totaled BRL 4,279.4 million, of which BRL 3,051.8 million were principal and BRL 1,227.6 million were charges. The long-term debt maturity schedule, including loans, financing and debentures is: DEBT MATURITIES 10,829 EBITDA (in BRL million) Net income for the period Consolidated 2021 2022 5,048.6 1,149.3 Net income for the period - discontinued operations (1,189.6) 3,386 2,009 1,256 2,965 941 271 172 2024 2025 2026 2027 2028 AFTER 2028 TOTAL Deferred corp. income tax and CSLL contribution Provision for corp. income tax and CSLL contribution Net financial expenses (income) EBIT Depreciation and amortization EBITDA Adjusted EBITDA - (628.4) 429.3 1,966.0 790.5 469.1 327.4 5,446.0 2,916.2 1,082.5 6,528.5 1,301.0 4,217.2 5,000.4 5,522.5 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Capital Performance | Infrastructure Capital | Economic-financial Performance Added value GRI 201-1 Consumer Default Copel registered BRL 15,221.9 million in total added value in 2022, 28.3% less than the previous year amounting BRL 21,227.4 million. The full statement can be found in the Financial Statements. 2022 2021 Retained 1.2% Shareholders 6.4% Outsourced workers 19.1% Staff 8.5% Government 64.8% Retained 5.1% Shareholders 13.1% Outsourced workers 6.0% Staff 8.4% Government 58.1% Government Staff Outsourced workers Shareholders Retained 173 In December 2022, the default of Copel DIS consumers, also known as Corporate Delin- quency, hit BRL 191.8 million, which is equal to 0.90% of its billing for the previous 12 months, with a drop of 32.3% as compared with December 2021. The results show a sig- nificant improvement over the previous year in the two main default indicators of Copel DIS, according to the methodology. The positive result was made possible due to the use of the collection tools, such as default notices (SMS, email, bill protests, collection letters) and, as a last resort, the suspension of supply. These actions led to the recovery of default accounts with many late-payment days. Indicator (%) Default Company1 Default Abradee2 2021 2022 Variation % 1.33 2.67 0.90 1.87 -32.33 -29.96 1. Corporate criteria default index: pending energy from 16 to 360 days and 12 month billing. 2. Abradee criteria default index: pending energy from 1 to 90 days and 12 month billing. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes 6 ANNEXES 174 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Content Index Usage Statement GRI used Companhia Paranaense de Energia – Copel reported in accordance with the GRI Standards for the period from January 1, 2022 to December 31, 2022. GRI 1: Foundations 2021 Applicable GRI Sector Standard(s) GRI Energy sector supplement 2013 The Content Index - Core Service has reviewed the GRI Content Summary and confirmed that the information is laid out clearly and consistently with the Standard. Disclo- sures 2-1 to 2-5, 3-1 and 3-2 are also correctly referenced in their respective sections in the body of the report. GRI Stan- dard /Other source CONTENT Location General content 2-1 Details of organization 33, 36, 37, 38, 39, 57 2-2 Entities included in the organization's sustainability report 2-3 Reporting period, frequency, and point of contact 2-4 Restatements of information 2-5 External audit 7 7 7 201 GRI 2: General Content 2021 2-6 Activities, value chain and other busi- ness relationships 33, 39, 125 2-7 Employees 129, 130, 195, 196 2-8 Workers who are not employees 129 2-9 Governance structure and its break- down 2-10 Appointment and selection for the highest governance body 2-11 Chairman of the highest governance body 57 57 58 175 OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD - - - - - - Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source GRI 2: General Content 2021 CONTENT Location 2-12 Role of highest governance body in overseeing impact management 2-13 Delegation of responsibility for impact management 2-14 Role of highest governance body in sustainability reporting 2-15 Conflicts of interest 116 52, 61 07, 09 67 2-16 Communicating critical concerns 71, 73 2-17 Collective knowledge of highest gov- ernance body 2-18 Evaluating the performance of the highest governance body 2-19 Remuneration policies 63 64 64 2-20 Process for determining remuneration 64, 132 2-21 Annual total remuneration ratio GRI 2: General Content 2021 2-22 Sustainable development strategy statement 132 4 2-23 Political commitments 52, 55, 66 2-24 Incorporation of political commitments 57 2-25 Processes to remedy adverse impacts 69, 82, 100 2-26 Mechanisms for counseling and raising concerns 69 2-27 Compliance with laws and regulations Significant amount considered to be above BRL 25 million. Copel's activities or operations in 2022 were not restricted. Also no fines or other monetary penalties were enforced. 2-28 Membership in associations 86 2-29 Approach to stakeholder engagement 105, 107 2-30 Collective bargaining agreements 133 176 OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD - - - - - - - - - - - - - - - - - - - Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source Material topics GRI 3: Material Topics 2021 CONTENT Location OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD 3-1 Process to define material topics 3-2 List of material topics Economic-financial performance GRI 3: Material Topics 2021 3-3 Material topics management GRI 201: Eco- nomic Perfor- mance 2016 201-1 Economic value generated and distributed 201-2 Financial implications and other risks and opportunities deriving from climate change 201-3 Defined benefit obligation and other pension plans 201-4 Financial aid received from govern- ment 9 10 30 173 93 134 Copel's social investments in 2022 included BRL 26.4 million through incentive laws. - Operational efficiency GRI 3: Material Topics 2021 3-3 Material topics management 28 Sector supple- ment GRI for energy 2013 EU2 Net energy output, by primary energy source and regulatory regime EU6 Management approach to ensure short and long-term electricity availability and reliability EU7 Demand management programs, including residential, commercial, corporate and industrial programs EU10 Planned capacity against projected electricity demand over the long term, by energy source and regulatory regime 37, 154, 155 156, 161 162 37 177 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source Sector supple- ment GRI for energy 2013 CONTENT Location EU11 Average generation efficiency of thermopower plants, by energy source and regulatory regime EU12 Percentage of transmission and dis- tribution loss in regard to total energy EU28 Frequency of power supply disrup- tions EU29 Average duration of power supply disruptions EU30 Average plant availability factor, by power source and by regulatory regime 156 158, 161 38, 161 38, 161 156, 157 Environmental management and actions against climate change GRI 3: Material Topics 2021 GRI 301: Materials 2016 3-3 Material topics management 18 301-1 Materials used, by weight or volume 188 301-2 Raw or recycled materials used 302-1 Energy consumption within the organization 90, 188, 189 GRI 302: Energy 2016 302-2 Energy consumption outside the organization 302-3 Energy Intensity 302-4 Reduction of energy consumption energy sector 302-5 Reductions in energy requirements of products and services 89 89 178 OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD All All Information not available. Copel does not control nor has information regarding the recy- cled material used. Information not available. Copel does not control or has information regarding on energy consumption outside the orga- nization. All Not applicable. This information is not applicable to Copel's business. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes CONTENT Location 303-1 Interactions with water as a shared resource 303-2 Management of water discharge-re- lated impacts 77, 101 77, 103 OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD Annexes | GRI Content Index GRI Stan- dard /Other source GRI 303: Water and effluents 2018 303-3 Water withdrawal 303-4 Water discharge 303-5 Water consumption 304-1 Owned, leased or managed oper- ating units within or adjacent to environ- mental protection areas and areas of high biodiversity value located outside environ- mental protection areas 304-2 Significant impacts of activities, prod- ucts and services on biodiversity GRI 304: Biodi- versity 2016 102 103 102 191 96, 98, 99 304-3 Habitats protected or restored 194 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations 305-1 Direct GHG emissions (Scope 1) 305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect GHG emissions (Scope 3) 305-4 GHG emissions intensity 97 95 95 95 95 305-5 Reduction of GHG emissions Indirect greenhouse gas emissions (Scope 2) dropped by 287,656.09 tCO2e in 2022. This reduction was attributed to the decrease in the emission factor of the Brazilian system from 0.1264 tCO2/MWh to 0.0426 tCO2/MWh. GRI 305: Emissions 2016 179 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source GRI 305: Emissions 2016 CONTENT Location OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD 305-6 Emissions of ozone-depleting sub- stances (ODS) All Not applicable Copel does not produce nor import and does not export substances that can destroy the ozone layer (SDO). 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions NOx and SOx emissions were not measured in 2022 because the Figueira Thermal Power Plant operated only in testing phase, and its measure- ments were not mandatory according to the law in effect (SEMA Resolution 16/2014). 306-1 Waste generation and significant waste-related impacts 104 306-2 Waste-related impact management 104 GRI 306: Waste 2020 306-3 Generated waste 104, 190 306-4 Waste diverted from disposal 306-5 Waste directed to disposal GRI 308: Environmental assessment of suppliers 2016 GRI Energy sec- tor supplement 2013 308-1 New suppliers that were screened using environmental criteria 308-2 Negative environmental impacts in the supply chain and actions taken EU13 Biodiversity of replacement habitats as compared to biodiversity of affected areas 190 191 125 125, 127 100 180 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source CONTENT Location OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD People management and health and safety at work GRI 3: Material Topics 2021 3-3 Material topics management 401-1 New employee hires and employee turnover 401-2 Benefits provided to full-time employ- ees that are not provided to temporary or part-time employees 401-3 Parental Leave 403-1 Occupational health and safety man- agement system 403-2 Hazard identification, risk assess- ment, and incident investigation 24 196 132, 133 195 140, 146 140 403-3 Occupational health services 140, 144, 145 403-4 Worker participation, consultation, and communication on occupational health and safety 403-5 Worker training on occupational health and safety 140 140 403-6 Promotion of worker health 144, 145 403-7 Prevention and mitigation of occu- pational health and safety impacts directly linked by business relationships 403-8 Workers covered by an occupational health and safety management system 403-9 Work-related injuries 403-10 Work-related illnesses 140 140, 146 146 146 GRI 401: Employment 2016 GRI 403: Occupational health and safety 2018 181 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD Annexes | GRI Content Index GRI Stan- dard /Other source GRI 404: Training and Education 2016 GRI 405: Diver- sity and equal opportunities 2016 GRI 406: Non-discrimina- tion 2016 GRI 407: Freedom of association and collective bargaining 2016 Sector supple- ment GRI for energy 2013 CONTENT Location 404-1 Average hours of training per year per employee 404-2 Programs for upgrading employee skills and transition assistance programs 404-3 Percentage of employees receiving regular performance and career develop- ment assessments 405-1 Diversity in governance bodies and employees 131, 198 129, 134 132 58, 135, 136, 137, 197, 198 405-2 Ratio of basic salary and remunera- tion of women to men 195, 197 406-1 Incidents of discrimination and cor- rective actions taken 136 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk EU14 Programs and processes to ensure the availability of a skilled workforce EU15 Percentage of employees who can retire in the next 5 and 10 years, by job category and region EU16 Policies and requirements regarding the health and safety of employees and employees of contractors and subcontrac- tors EU18 Percentage of outsourced and sub- contracted workers who have undergone relevant health and safety training 125 131 134 140 140, 146 182 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | GRI Content Index GRI Stan- dard /Other source CONTENT Location Corporate governance, risk management and cybersecurity GRI 3: Material Topics 2021 3-3 Material topics management 205-1 Operations assessed for risks related to corruption 15 69 OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD GRI 205: Anti- corruption 2016 205-2 Communication and training about anti-corruption policies and procedures 67, 68 B, C, D and E requirements. Information not available Copel does not manage training information by region or by type of business partner. It was also not possible to check if the anti-corruption policies were informed to any other people or organization. 205-3 Confirmed incidents of corruption and actions taken 69 GRI 206: An- ti-Competitive Behavior ]2016 206-1 Legal actions for anticompetitive behavior, anti-trust, and monopoly practices GRI 415: Public policies 2016 415-1 Political contributions There are no pending or closed legal actions in which the organization is challenged regarding the practice of unfair competition, antitrust and anti-monopoly violations. Since Copel is a mixed-capital compa- ny, it is legally forbidden from making this type of contribution. Art. 31(III) of Federal Law 9096, of September 19, 1995, forbids parties to directly or in- directly receive in any form or pretext, pecuniary or cash or cash-equivalent aid, including through advertising of any kind from public entities and legal entities of any nature, except for the provisions referred to in art. 38 of this Law and those from the Special Fund for Campaign Financing. GRI 418: Cus- tomer privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 80 183 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD Annexes | GRI Content Index GRI Stan- dard /Other source CONTENT Location Social Responsibility GRI 3: Material Topics 2021 GRI 202: Market presence 2016 GRI 203: Indi- rect economic impacts 2016 GRI 204: Procurement practices 2016 GRI 408: Child labor 2016 GRI 409: Forced or compulsory labor 2016 GRI 411: Rights of Indigenous people 2016 GRI 413: Local communities 2016 3-3 Material topics management 202-1 Ratio of lowest wage and local mini- mum wage, by gender 202-2 Proportion of senior management hired from the local community 203-1 Infrastructure investments and sup- port services 20 197 195 114 203-2 Significant indirect economic impacts 114, 122 204-1 Proportion of spending on local suppliers 125, 127 408-1 Operations and suppliers at signifi- cant risk for incidents of child labor 409-1 Operations and suppliers at signifi- cant risk of forced or slave-like labor 125 125 411-1 Incidents of violations involving rights of Indigenous peoples 124 413-1 Operations with local community engagement, impact assessments, and development programs 413-2 Operations with significant actual and potential negative impacts on local communities 114, 115, 118 114 184 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD Annexes | GRI Content Index GRI Stan- dard /Other source GRI 414: Social assessment of suppliers 2016 GRI Energy sector supplement 2013 CONTENT Location 414-1 New suppliers selected based on social criteria 414-2 Negative social impacts in the supply chain and actions taken EU19 Stakeholder participation in deci- sion-making processes related to energy planning and infrastructure development EU20 Approach to managing displacement impacts EU21 Contingency planning measures, disaster/emergency management plans and training programs, and recovery/resto- ration plans EU22 Number of people physically or economically displaced and compensation, by type of project EU25 Service user accidents and deaths involving company property 125 125, 127 105 123 76 123 113 185 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes OMISSION Omitted re- quirement(s) Reason Explanation REF. NO. OF THE GRI SECTOR STANDARD Annexes | GRI Content Index GRI Stan- dard /Other source CONTENT Location Transformation of the energy sector GRI 3: Material Topics 2021 GRI Energy sec- tor supplement 2013 3-3 Material topics management 26 EU1 Installed capacity, by primary energy source and by regulatory regime EU8 Research & development and expen- diture aimed at providing reliable electricity and Promoting Sustainable Development 154, 155 151, 152 Other non-material topics Customer satisfaction GRI 3: Material Topics 2021 3-3 Material topics management 22 EU3 Number of residential, industrial, cor- porate and commercial customer accounts EU23 Programs, including those in partner- ship with the government, to improve or maintain access to electricity services and customer support 108, 112, 160 122, 124, 154, 159, 163 GRI Energy sec- tor supplement 2013 EU24 Practices to address language, cultur- al, low literacy and disability related barriers to accessing and safely using electricity and customer support 112, 124 EU26 Percentage of population not served in licensed distribution or service areas Copel concluded its Universalization Plan in the urban area in 2006 and in the rural area in 2010. EU27 Number of residential disconnections due to default by duration of disconnection and by regulatory regime 111 186 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | SASB Summary SASB Summary Topic Accounting metrics Related GRI Location Greenhouse gas emissions and energy resource planning IF-EU-110a.2 Emissions of greenhouse gases (GHG) associated with power deliveries IF-EU-110a.3 Discussion of the long and short-term strategy or plan for managing Scope 1 emissions, emission reduction targets, and an analysis of perfor- mance against these targets 305-1, 305-2, 305-3, 305-6, 305-7 305-1 Water management IF-EU-140a.1 (1) Total water withdrawn, (2) Total water consumed, percentage of every withdrawal from high or extremely high water stress regions 303-1, 303-3, 303-4 IF-EU-140a.3 Discussion of water management risks and description of strategies and practices to mitigate those risks Energy access IF-EU-240a.3 Amount of residential customers who had their power cut due to default, percentage reconnected within 30 days 303-1 EU27 IF-EU-240a.4 Discussion of the impact of external factors on customer accessibility of electricity, including the economic conditions of the service territory EU23, EU24 Health and safety of workforce IF-EU-320a.1 (1) Total recordable injury rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR) Network resilience IF-EU-550a.1 Number of incidents of non-compliance with standards or regulations on physical and/or cybersecurity IF-EU-550a.2 (1) System Average Interruption Duration Index (SAIDI), (2) System Average Interruption Frequency Index (SAIFI) and (3) Customer Average Interruption Duration Index (CAIDI), including the main event days 403-9 418-1 EU28, EU29 Activity metrics IF-EU-000.A Number of clients: (1) residential, (2) commercial and (3) industrial EU3 95 50 101 77 111 122 146 80 38 108 187 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Additional disclosures Natural Capital ENERGY CONSUMPTION FROM FOSSIL FUELS (GJ) GRI 302-1 Type of fuel 2020 2021 2022 2021 x 2022 variation (%) Non renewable Gasoline Diesel oil Charcoal Total Renewables Ethanol 1,278.71 1,858.95 2,452.61 98,926.87 85,611.67 103,204.63 - - 411,475.69 100,205.58 87,470.62 517,132.93 19,051.17 21,814.88 24,173.80 Anhydrous Ethanol 0.00 0.00 627.07 Biodiesel Total Total fuel 15,884.18 10,045.81 12,085.23 34,935.35 31,860.69 36,886.1 135,140.93 119,331.31 554,019.02 31.94 20.55 - 491% 10.81 - 20.30 15.77 364% Note: details of the conversions are in the GRI summary that corresponds to the indicator. No aviation fuel was registered due to the sale of the aircraft. 188 USE OF MATERIALS1 (in t) GRI 301-1 Copel Distribuição2 Aluminum conductors Copper conductors Crosshead Polymer crosshead Operating equipment Iron Insulators Energy meters Concrete poles Fiber poles Current transformer Network transformer Total 2020 - - - - - - - - - - - - 146,997.69 2021 - - - - - - - - - - - - 194,408.00 2022 8,556.94 282.00 4,851.92 95.22 691.72 1,581.83 1,936.83 580.67 170,549.17 635.62 166.00 4,715.26 194,643.18 2020 - - - - - - - - - - - - - - Copel Geração3 Aluminum Copper Electronic components Contaminated Miscellaneous operating equipment Iron and Steel Lighting Insulators Wood Insulating Oil Lubricant Paper Polymers Glass and porcelain Total 1. Copel has no information regarding the recycled material used. 2. In 2020 and 2021, the materials were disclosed in groups: 1. Copper and aluminum conducters; 2. Concrete, fiber and polymer poles and crossheads; 3. Transformers, insulators, meters and other operation equipment; 3. Iron. The materials were broken down and detailed by type in 2022. 3. In 2020 and 2021, the materials were disclosed in groups: 1. Aluminum, Copper, Iron and Steel; 2. Insulating and lubricating oils; 3. Insulators, Glass and Porcelain; 4. Chemical Products, Rags, Polymers and Paper; 5. Elec- tronic Components. The materials were broken down and detailed by type in 2022. 2021 - - - - - - - - - - - - - - 49,375.79 1,512,734.15 2022 884.02 3,233.82 2,869.04 17,710.45 520.00 3,372.62 886.15 410.08 25.00 840.00 5,961.30 146.11 4,139.34 26.64 41,024.57 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Electricity consumption (GJ) GRI 302-1 Electricity consumption 2020 265,886.34 2021 237,888.98 2022 187,316.68 2021 x 2022 variation (%) -21.26 Electricity sold (GJ) GRI 302-1 Electricity sold 2020 2021 2022 2021 x 2022 variation (%) 65,413,543.83 70,751,504.92 70,487,895.32 -0.37 TOTAL ENERGY CONSUMPTION (MWH) GRI 302-1 Total energy consumption (MWh) GRI 302-1 Non-renewable sources total Renewable sources total Consumption total 2019 79,921.41 45,975.28 125,896.69 2020 40,907.63 70,488.84 111,396.46 2021 34,738.08 64,489.78 99,227.86 2022 155,407.36 50,519.23 205,926.59 189 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures WASTE GENERATED, BY BREAKDOWN GRI 306-3 Waste breakdown Waste description Total weight of waste generated (t) 2021 2022 2021 x 2022 variation (%) Hazardous waste - Class I Non-hazardous waste - Class II Total waste Batteries; lead-acid batteries; portable batteries; treated wood cross arms; unserviceable equipment containing insulating mineral oil; lamps; batteries; posts; oils; solvents and paints Paper; cardboard; food waste; pruning waste; sanitary waste; glass; metals; plastics and optical fiber scraps from telecom operations 4,523.66 1,194.55 53,335.13 7,127.17 57,858.79 8,321.72 WASTE DIRECTED TO DISPOSAL, BY BREAKDOWN1 GRI 306-4 Total waste weight (t) Total waste weight (t) 2021 2022 At Copel Outside Copel Total At Copel Outside Copel Total Hazardous waste Preparation for reuse Recycling Reuse Re-refining Co-processing Other recovery actions - - - - - - - 3,971.16 311.50 - 50.77 - - 3,971.16 311.50 252.58 50.77 - Total hazardous waste diverted from disposal 0.00 4,586.01 4,586.01 Non-hazardous waste Recycling Compost Preparation for reuse Other recovery actions Total non-hazardous waste diverted from disposal Total waste diverted from disposal 32.00 13.42 - - 45.42 45.42 37,511.21 9,914.50 37,543.21 9,927.92 - - - - 47,425.71 52,011.72 47,471.13 52,057.14 - - - - - - - - - 7.60 7.60 7.60 1,031.53 2,708.53 1,031.53 2,708.53 - - - 176.32 3,916.38 - - - 176.32 3,916.38 -14.60 11,971.92 11,971.92 -68.11 - - 35,601.09 35,601.09 0.00 47,573.01 51,489.39 7.60 47,580.61 51,496.99 - - - 0.23 -1.08 -73.6 -86.6 -86 % - -31.79 - - - - 1. The amount of waste generated in 2022, indicated in GRI 306-3, is less than the amount allocated because there is a difference between the time the waste is temporarily stored and the final destination. 190 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures WASTE DIRECTED TO DISPOSAL, BY BREAKDOWN GRI 306-5 Hazardous waste Incineration without energy recovery Landfill Total hazardous waste intended for disposal Non-hazardous waste Landfill Total non-hazardous waste intended for disposal Total waste diverted from disposal Total waste weight (t) Total waste weight (t) 2021 Total 2022 Total % At Copel Outside Copel At Copel Outside Copel - - - - - - 77.18 155.39 232.57 77.18 155.39 232.57 2,169.43 2,169.43 2,401.13 2,169.43 2,169.43 2,401.13 - - - - - - 29.03 363.33 392.36 29.03 -62.39 363.33 133.82 392.36 68.71 3,935.96 3,935.96 3,935.96 3,935.96 4,328.32 4,328.32 81,43 81,43 80.26 OPERATIONAL SITES OWNED, LEASED, MANAGED IN PROTECTED AREAS GRI 304-1 Area name Vale do Codó State Park Guaricana National Park Campos Gerais National Park Size (km2) Location 0.02 4.94 1.92 Jaguariaíva (PR) and Campo Largo (PR) Morretes (PR), São José dos Pinhais (PR) and Guaratuba (PR) Carambeí (PR), Castro (PR) and Ponta Grossa (PR) Tibagi River Wildlife Refuge 0.38 Ponta Grossa (PR) Mono Castro Wildlife Refuge 0.27 Castro (PR) Operation type Biodiversity value Power Generation and Transmission Conservation Units intended for the maintenance of ecosystems free from changes caused by human inter- ference, allowing only the indirect use of their natural attributes. The usage restrictions of these areas vary according to the category: Ecological Station - to preserve nature and conduct scien- tific research Park - of public possession and domain, and the private areas included within its boundaries will be expropriated, in accordance to the dictates of the law Wildlife Refuge - to protect natural environments by creating conditions for the existence or reproduction of species or communities of local plants and animals that live or migrate to the region 191 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Area name Size (km2) Location Operation type Biodiversity value Environmental Protection Area of the Co- rumbataí, Botucatu and Tejupa Corumbataí Perimeter 1.71 Analandia (SP), Corumbataí (SP), Itirapina (SP) and São Carlos (SP) Environmental Protection Area of Campi- nas Environmental Protection Area of Iguaçu Environmental Protection Area of Iraí Environmental Protection Area of Passaú- na 0.48 0.35 0.34 1.23 Campinas (SP), Jaguariúna (SP) and Pedreira (SP) Curitiba (PR) and São José dos Pinhais (PR) Colombo (PR), Pinhais (PR), Campina Grande do Sul (PR) Campo Largo (PR), Campo Magro (PR), Curitiba (PR), Almirante Tamandaré (PR), Campo Magro (PR), Araucária (PR) Environmental Protection Area of Pequeno 0.42 São José dos Pinhais (PR) Environmental Protection Area of Rio Paraíba do Sul Environmental Protection Area of Rio Verde 0.7 São José dos Campos (SP) 0.7 Campo Largo (PR) Power Generation and Transmission Conservation Units (CUs or Unidades de Conservação (UCs)) in which the exploration of the environment is allowed but in a way that ensures the continuity of renew- able environmental resources and ecological processes, maintaining biodiversity and other ecological attributes in a socially fair and economically viable manner. The usage restrictions of these areas vary according to the category of the CU: Environmental Protection Area - usually an extensive area with a certain degree of human occupation home to abiotic, biotic, aesthetic or cultural attributes es- pecially important for the quality of life and the wellbeing of humans. It aims to protect biological diversity, regulate the occupation process and ensure the sustainability of the use of natural resources. Private Natural Heritage Reserve - private area, recorded in perpetuity, with the purpose of conserving biological diversity. 192 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Area name State Environmental Protection Area of Escarpa Devoniana State Environmental Protection Area of Serra da Esperança State Environmental Protection Area of Guaratuba State Environmental Protection Area of Piraquara Environmental Protection Area Piracicaba Juqueri Mirim Area 1 Environmental Protection Area Piracicaba Juqueri Mirim Area 2 Environmental Protection Area of the Cantareira System Natural Heritage Private Reserve of Morro da Mina Natural Heritage Private Reserve of Perna do Pirata Size (km2) 10.61 Location Operation type Biodiversity value Jaguariaíva (PR), Carambeí (PR), Castro (PR), Tibagi (PR), Ponta Grossa (PR), Balsa Nova (PR), Campo Largo (PR), Palmeira (PR) 0.04 União da Vitória (PR) 43.84 Morretes (PR), São José dos Pinhais (PR), Guaratuba (PR), Tijucas do Sul (PR) 0.05 Piraquara (PR) 2.16 4.07 3.3 Analândia (SP), Corumbataí (SP), Itirapina (SP) and Rio Claro (SP) Amparo (SP), Bragança Paulista (SP), Campinas (SP), Igaratá (SP), Jaguariúna (SP), Morungaba (SP), Pedreira (SP), Piracaia (SP) Amparo (SP), Bragança Paulista (SP), Igaratá (SP), Morungaba (SP), Piracaia (SP) 0.04 Antonina (PR) 0.0022 Morretes (PR) Power Generation and Transmission Conservation Units (CUs or Unidades de Conservação (UCs)) in which the exploration of the environment is allowed but in a way that ensures the continuity of renew- able environmental resources and ecological processes, maintaining biodiversity and other ecological attributes in a socially fair and economically viable manner. The usage restrictions of these areas vary according to the catego- ry of the CU: Environmental Protection Area: usually an extensive area with a certain degree of human occupation home to abiotic, biotic, aesthetic or cultural attributes es- pecially important for the quality of life and the wellbeing of humans. It aims to protect biological diversity, regulate the occupation process and ensure the sustainability of the use of natural resources. Private Natural Heritage Reserve: private area, recorded in perpetuity, with the objective of conserving biological diversity. Fully protected areas 0.93 State of Parana Fully protected areas 5 State of Parana High voltage distribu- tion lines (Linhas de distribuição de alta tensão - LDAT) Distribution net- works at 34.5 kV (Rede de Dis- tribuição - RDs) Includes national parks, state parks, wildlife refuge, biological reserve and ecological station for protection of terrestrial ecosystems Includes national parks, state parks, wildlife refuge, biological reserve and ecological station for protection of terrestrial ecosystems 193 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Area name Size (km2) Location Operation type Biodiversity value RAMSAR Sites - Guaratuba Fully-Protected Area 1.5 Guaratuba, Mandirituba, Tiju- cas do Sul, Matinhos, Pontal do Paraná, São José dos Pinhais and Morretes (PR) RAMSAR Sites ESEC Guaraqueçaba 0.01 Guaraqueçaba( PR) SE Vossoroca, SE Chaminé, SE Salto do Meio, High Voltage Distribution Lines (LDAT), Power Distribution Net- works (RDs) Distribution net- works at 34.5 kV The RAMSAR Guaratuba Site has a high biodiversity value, given its high diversity of living creatures and rich landscape, composed of mountains, altitude fields, rivers, waterfalls, plains and mangroves. The APA is a natural dis- tribution area for the marsh weevil (Formicivora acutiros- tris), an endangered species. A fully protected area in the public domain, formed by mangroves, sandbanks, and coastal islands. It is home to the red-tailed parrot - Amazona brasiliensis SIZE AND LOCATION OF ALL AREAS OF PROTECTED OR RESTORED HABITAT GRI 304-3 Area name Forest Offsetting Projects Paraná PPAs Mato Grosso PPAs Size (ha) Location Situation of area 292.0000 Various 4,265.3700 Various 5,488.3500 Various In Progress Protected and monitored Protected and monitored Serra do Mar Areas - Guaricana National Park 6,003.8300 Guaratuba (PR) Protected and monitored Serra do Mar Area - Chaminé HPP s Serra do Mar Area - Guaricana HPP s Serra do Mar Areas - Various 3,513.3600 Tijucas do Sul (PR) Protected and monitored 795.4200 Various Protected and monitored 70.0500 São José dos Pinhais (PR) Protected and monitored Tia Chica Ecological Station 423.0500 Pinhão (PR) Rio Guarani State Park 2,322.0000 Três Barras do Paraná (PR) Rio dos Touros Ecological Station 1,231.0600 Iguaçu Reserve (PR) In process of formalization as an Integral Protec- tion Conservation Unit Integral Protection Conservation Unit (State De- cree 2322/2000) Integral Protection Conservation Unit (State De- cree 4229/2001) 194 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Human capital Ratio of senior management hired from the local community GRI 202-2 and 13 303/2016 and by the internal policy , and standard for the nomination of mem- Level Average Female Salary Average Male Salary PAYMENT INDICATORS BY GENDER The referrals for the board of directors must bers of statutory bodies. Copel's operations Executive level (base salary) R$ 687.848,40 R$ 639.976,76 comply with the requirements and prohibi- are located in 10 states and 100% of its tions defined by Federal Laws 6 404/1976 , board of directors were hired in the country. ITS OWN EMPLOYEES BY EMPLOYMENT CONTRACT AND GENDER1 GRI 2-7 Job Type 2021 2022 Full-time Part-time Total Full-time Part-time Women Men Total 1,411 4,963 6,374 6 3 9 1,417 4,966 6,383 1,267 4,605 5,872 1 2 3 1. Copel does not have any employees on zero-hour contracts. Parental Leave GRI 401-3 Employees who were entitled to take the leave Employees who took the leave Employees who returned to work during the reporting period after their leave of absence ended Employees who returned to work after their leave and were still employed 12 months after their return Return rate Retention rate 195 Men Women Men Women Men Women Men Women Men Women Men Women Total 1,268 4,607 5,875 2022 4,607 1,268 163 55 163 55 157 50 100% 100% 96.32% 90.91% Executive level (base salary + other financial incentives)¹ R$ 687.848,40 R$ 639.976,76 Managerial level (base salary) R$ 132.462,43 R$ 154.715,30 Managerial level (base salary + other financial incentives)² R$ 176.867,72 R$ 199.113,10 Non managerial level (base salary) R$ 68,061.61 R$ 69,227.93 1 The variable remuneration portion that refers to the Performance Bonus for 2022 was not approved in Annual General Shareholders' Meeting. The executives are not entitled to the Profit Sharing. 2 Considers the variable remuneration that refers to Profit Sharing. Difference Average salary difference by gender Mean salary difference by gender Average bonus difference by gender Mean bonus difference by gender Difference between men and women (%)1.2 16.80 16,68 -0.02 0,00 1 Considers the Profit Sharing as a bonus. 2 Considers managers at the low, medium and top management levels and does not consider directors. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Turnover NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER1 GRI 401-1 Admissions Admissions rate (%) Terminations Turnover rate (%)2 By Gender Male Female Total By age Up to 30 From 30 to 50 Over 50 Total By region South Midwest Northeast Southeast Total 3 0 3 0 1 2 3 3 0 0 0 3 100.00 0.00 100.00 0.00 33.33 66.67 100.00 100.00 0.00 0.00 0.00 100.00 362 149 511 3 150 358 511 509 0 2 0 511 3.67 5.26 4.03 1.44 1.63 10.91 4.03 4.06 0.00 6.67 0.00 4.03 1. For the calculation of number of new hires, the rate of new employees and turnover considered as hired, the hired and reinstated employees. 2. The turnover rate is calculated using the formula (hired + terminated/2)/by the total number of employees in content 2-7. TURNOVER RATE OF COMPANY EMPLOYEES Rate Total turnover rate of employees Total voluntary turnover rate of employees 2019 3.49% 3.27% 2020 3.07% 2.76% 2021 2.18% 1.87% 2022 4.03% 3.91% 196 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures Diversity Ratio of lowest wage and local minimum wage, by gender GRI 202-1 Copel does not offer remuneration lower than the national minimum wage. Salaries are managed through the Career and Com- pensation Structure. Variation between lowest wage and minimum wage, by gender1 2 3 Lowest salary paid by the organiza- tion Minimum wage determined by law or union 2022 Men Women 2,173.37 2,088.51 1,212.00 1,212.00 Percentage ratio 1.79 1.72 1. For the calculation, employees with a reduced workday of 4 hours were disregarded. 2. Outsourced: HR does not have detailed information about outsourced workers. 3. Considering all business units (Copel Holding Company, Generation and Transmission, Distribution, Trading and Services). Variation Women x Men 0.96 1.00 0.96 RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN AND MEN GRI 405-2 DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES, BY JOB CATEGORY AND AGE GRI 405-1 Job category Secondary-level technical profes- sional Secondary-level professional University-level professional Basic pay ration Remuneration ratio Job category Company employees 0.97 1.04 0.85 0.96 0.96 0.90 Operational Secondary-level technical professional Secondary-level professional University-level professional Total Total 18 1,450 3,271 1,136 5,875 197 under 30 years old From 30 to 50 50 Above Number % Number % Number 0.0% 0.6% 1.0% 0.3% 2 11.1% 1,157 79.8% 2,366 72.3% 832 73.2% 16 285 873 301 0 8 32 3 43 0.73% 4,357 74.16% 1,475 25.11% % 88.9% 19.7% 26.7% 26.5% Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES, BY JOB CATEGORY AND RACE/ COLOR/ETHNICITY GRI 405-1 Color/Race Operational Secondary-level technical professional Secondary-level professional University-level professional Total 25 employees did not inform the identification of color/race. Asian White 0.0% 2.4% 3.1% 5.6% 3.4% 88.9% 82.7% 82.5% 86.2% 82.9% Indig- enous people 0.0% 0.1% 0.2% 0.1% 0.1% Mixed race Black 11.1% 10.9% 10.9% 6.6% 10.1% 0.0% 3.9% 3.3% 1.5% 3.1% DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES, BY JOB CATEGORY AND VULNERABLE GROUP GRI 405-1 Color/Race Operational Secondary-level technical professional Secondary-level professional University-level professional Total People development Women Black People with Disabilities LGBTQIA+ 0.0% 7.0% 26.5% 26.4% 21.6% 11.1% 14.8% 14.2% 8.1% 13.1% 0.0% 0.4% 3.2% 1.1% 2.1% 0.0% 0.0% 0.1% 0.0% 0.1% Indigenous people Above 50 0.0% 0.1% 0.2% 0.1% 0.1% 88.9% 19.7% 26.7% 26.5% 25.1% HOURS OF TRAINING BY JOB CATEGORY GRI 404-1 Employee Total Hours of training Average training hours 198 Operational 18 444.44 24.69 Secondary-level technical profes- sional Secondary-level professional University-level professional Total 1,450 77,591.42 53.51 3,271 87,700.60 26.81 1,136 5,875 45,443.62 211,180.08 40.00 35.95 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional disclosures SDGs and Priority Sector Goals 7. AFFORDABLE AND CLEAN ENERGY Goal 7.1: By 2030, ensure universal, reliable, modern, and affordable access to energy services. Sector Goal: Strive to reach a 5% gain in electrical efficiency (GWh or equivalent) by 2030. Copel Performance: The electricity generation complex produced 26,787.7 GWh in 2022, around 30% more than in 2021, when the production reached 20,284.3 GWh. In order to improve and guarantee the operational efficiency of its plants, Copel is making a series of investments, such as the expansion of its wind generation park. Sector Goal: Enable access to electricity to 100% of the Brazilian population by 2030 through the use of new technologies, at affordable prices and with quality. SDG 7 Copel Performance: Copel currently meets all the criteria for universal access to electricity established by the Brazilian electricity regulator ( Agência Nacional de Energia Elétrica - Goal 7.2: By 2030, substantially increase the share of renewable energy in the Aneel) and is improving its distribution assets in remote or hard-to-access places. national energy mix. Copel Performance: Copel's energy matrix is 93.8% derived from renewable sources. The Company's goal is to reach 100% by 2030 and also to boost the generation of electricity from alternative sources, such as wind and solar. Goal 7.3: By 2030, increase the rate of improvement in energy efficiency of the Brazilian economy. Copel Performance: The actions of Copel's energy efficiency program in 2022 led to savings of 22.572,26 MWh. 8. DECENT WORK AND ECONOMIC GROWTH Goal 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. Sector Goal: Foster strategies/initiatives to hire micro, small, and medium-sized companies in order to increase their share in the value chain (implementation goal/ target). SDG 8 Copel Performance: Copel adopts practices of differentiated and special treatment for micro and small companies, as set forth in Federal Law 147/2014, which enables these suppliers to participate in contracting processes. Sector Goal: Ensure no deaths of company employees and outsourced workers while on the job in the electricity sector. Copel Performance: The care for health and safety of employees and service providers is non-negotiable for Copel, which, in 2022, linked the goal of zero fatal acci- dents to the Company's variable remuneration program. Three deaths of outsourced professionals were recorded in 2022. 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE Goal 9.1: Develop a quality, reliable, sustainable and robust infrastructure, including regional and cross-border infrastructure to support economic development and human well-being with a focus on equitable and affordable access for all. Sector Goal: Reach at least 80,000 public electric charge stations installed in the country by 2030. SDG 9 Copel Performance: In addition to an increase in the number of electric charge points, Copel has a project with a startup to technologically integrate all the charge points under a single management system. The first ultra-fast charger, with capacity to connect three vehicles at once, has started operating in Curitiba. Currently, Copel has 32 charging stations available in the state of Paraná. Goal 9.4: By 2030, modernize the infrastructure and refurbish industries to make them sustainable, with increased efficiency in the use of resources and greater use of clean and environmentally sound industrial technologies and processes; with all countries operating in accordance with their respective capabilities. Sector Goal: Copel Performance: 199 In 2022, Copel filed 42 patent applications, granting 14 software registrations, 9 industrial design registrations and 5 industrial patents. By 2030, expand the number of patents and licenses requested for every million reais invested in R&D projects. Copel Performance: 42 requests for registration filed at the National Industrial Property Institute (INPI) in 2022. 5 industrial patents granted, 14 software registration certificates and 9 industrial design registration certificates. See more on page 154 See more on page 162 See more on page 154 See more on page 155 See more on page 1 5 3 See more on page 140 See more on page 152 See more on page 150 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Additional Disclosures 11. SUSTAINABLE CITIES AND COMMUNITIES: Goal 11.1: By 2030, ensure everyone has access to safe, appropriate and affordable housing and basic services and urbanize slums. Sector Goal: Reach less than 13% in real non-technical losses by 2030. Copel Performance: The non-technical losses are calculated on the low voltage market of Copel DIS: the amount reached in 2022 was 1.9%, compared to 1.89% in the previous year. Sector Goal: Step up initiatives linked to smart cities by 2030. Copel Performance: Copel already has 430,000 smart meters installed in its concession area. In 2022 alone, it installed 244,000. SDG 11 Goal 11.4: Step up efforts to protect and safeguard the world's cultural and natural heritage. Sector Goal: Conduct socio-economic analytics in traditional communities impacted by the operations of the electricity sector until 2025 to subsidize the implementa- tion of voluntary projects. Sector Goal: Support the maintenance of projects aimed at preserving tangible and intangible historical heritage until 2030 to ensure the efficient use of funds and the effectiveness of the initiatives. Copel Performance: Copel implements projects to preserve tangible and intangible historical heritage that can be accessed in the Sustainability Portal: Sociocultural (https://copelsustentabilidade.com/social/sociocultural/). 13. ACTION AGAINST GLOBAL CLIMATE CHANGE Goal 13.2: Integrate climate change measures into national policies, strategies and plans. SDG 13 Sector Goal: 15 power sector companies (generation, transmission, and distribution) with science-based targets approved by 2023. Copel Performance: Copel has the Carbon Neutrality Plan with the goals of scope 1 for 2030, based on SBTi¹. See more on page 161 See more on page 163 These initiatives can be checked in the socio-en- vironmental reports of the wholly-owned subsidiaries, available on the website. See more on page 91 1. The Science Based Targets Initiative is a partnership between the Carbon Disclosure Project, the Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) that aims to encourage companies to adopt science-based greenhouse gas (GHG) reduction targets. In the specific case of energy, there is a guide produced by the coalition to assist in the setting of these goals. 200 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Assurance Report Assurance Report GRI 2-5 (Convenience Translation into English from the Original Previously Issued in Portuguese) Companhia Paranaense de Energia – Copel Deloitte Touche Tohmatsu Auditores Independentes Ltda. INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON NON-FINANCIAL INFORMATION INCLUDED IN THE 2022 INTEGRATED REPORTING To the Management and Shareholders of Companhia Paranaense de Energia - Copel Introduction Management’s responsibilities We have been engaged by Companhia The Company’s Management is Accounting Standards Board (SASB) KPIs Paranaense de Energia - Copel (“Company”) responsible for: to submit our limited assurance report on and including the guidelines set out in the OCPC 09 – Relato Integrado (“OCPC 09”) the non-financial information included in the • Selecting and setting appropriate criteria as required by CVM Resolution No. 14 Company’s 2022 Integrated Reporting, relat- to prepare the information included in the issued on December 9, 2020. ed to the year ended December 31, 2022. Integrated Reporting; • Designing, implementing and maintaining Our limited assurance scope does not • Preparing the information based on the internal controls over relevant information comprise prior-period information or any criteria and guidelines set out in the Global for the preparation of the information in- other information disclosed in conjunction Reporting Initiative (GRI Standards), in cluded in the Integrated Reporting, that is with the Integrated Reporting, including any addition to some Corporate Sustainabil- free from material misstatement, whether embedded images, audio files or videos. ity Assessment (CSA) and Sustainability due to fraud or error. 201 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Auditor’s responsibility Our responsibility is to express a conclusion information included in the 2022 Integrated concerning the material information disclosed on the non-financial information included in Reporting, taken as a whole, is free from in the 2022 Integrated Reporting, in which the 2022 Integrated Reporting, based on our material misstatement. material misstatements might exist. The limited assurance engagement conducted in procedures comprised, among others: accordance with Technical Communication A limited assurance engagement conducted (CTO) No. 07 - 2022, issued by the Federal in accordance with Brazilian standard NBC- a) Planning the work, considering the Accounting Council (“CFC”), and based on TO-3000 (ISAE 3000) consists mainly of relevance, the volume of quantitative and Brazilian standard NBC-TO-3000 - Assurance making inquiries of Management and other qualitative information and the operating and Engagements other than Audits or Reviews, professionals of the Company involved internal control systems that were used to issued by the CFC, which is equivalent to the in the preparation of the non-financial prepare the information included in the 2022 international standard ISAE 3000 - Assurance information, as well as applying analytical Integrated Reporting; Engagements other than Audits or Reviews procedures to obtain evidence that enables of Historical Financial Information, issued us to reach a limited assurance conclusion b) Understanding the calculation by the International Auditing and Assurance on the information taken as a whole. A methodology and the procedures adopted Standards Board (IAASB). Those standards limited assurance engagement also requires for the compilation of KPIs through inquiries require that we comply with ethical and the performance of additional procedures with the managers responsible for the independence requirements and other when the independent auditor becomes preparation of the information; related responsibilities, including as regards aware of matters that cause the auditor to the adoption of the Brazilian Quality Control believe that the information included in the c) Applying analytical procedures to Standard (NBC PA 01) and, therefore, the Integrated Reporting, taken as a whole, quantitative information and making implementation of a comprehensive quality might present material misstatements. inquiries about the qualitative information control system, including documented policies and its correlation with the indicators and procedures on the compliance with ethical The procedures selected were based disclosed in the information included in the requirements, professional standards and on our understanding of the aspects 2022 Integrated Reporting; and applicable legal and regulatory requirements. related to the compilation, materiality and presentation of the information included in d) For cases in which non-financial data is In addition, those standards require that the the 2022 Integrated Reporting, and other correlated to financial indicators, comparing work be planned and performed to obtain circumstances of the engagement and our such KPI with the financial statements and/ 202 limited assurance that the non-financial consideration of the areas and processes or accounting records. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Conclusion The limited assurance engagement also Non-financial data are subject to more Based on the procedures performed, which included the compliance with the guidelines inherent limitations than financial data, due are described herein, and on the evidence and criteria of the GRI, CSA and SASB, to the nature and diversity of the methods we have obtained, nothing has come to our applied in the preparation of the information used to determine, calculate or estimate attention that causes us to believe that the included in the Integrated Report. such data. Qualitative interpretations non-financial information, included in the on materiality, relevance and accuracy Integrated Reporting of the Company for We believe that the evidence we have of the data are subject to individual the year ended December 31, 2022, was obtained is sufficient and appropriate assumptions and judgments. In addition, not prepared, in all material respects, in to provide a basis for our limited we have not performed any work related accordance with the criteria and guidelines assurance conclusion. to data disclosed for prior periods or future set out in the GRI, CSA and SASB. projections and goals. Scope and limitations The accompanying Integrated Reporting The sustainability indicators have been have been translated into English for the The procedures performed in a limited prepared and presented pursuant to convenience of readers outside Brazil. assurance engagement vary in nature and the criteria set out in GRI, CSA and timing from, and are less in scope than SASB Standards and, therefore, are not for, a reasonable assurance engagement. intended to ensure compliance with social, Consequently, the level of assurance economic, environmental or engineering São Paulo, June 2, 2023 obtained in a limited assurance engagement laws and regulations. However, the is substantially lower than the assurance aforementioned standards provide for the that would have been obtained had a presentation and disclosure of possible reasonable assurance engagement been non-compliance with such regulations performed. Had we performed a reasonable when sanctions or significant fines are DELOITTE TOUCHE TOHMATSU Jonas Dal Ponte assurance engagement, other matters applied. Our limited assurance report Auditores Independentes Ltda. Engagement Partner and misstatements that might exist in the should be read and understood in this information included in the 2022 Integrated context, which is inherent in the criteria Reporting might have been identified. selected (GRI, CSA and SASB Standards). Accordingly, we do not express an opinion 203 on this information. Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes Annexes | Credits Credits Coordination Companhia Paranaense de Energia – Copel Governance, Risk and Compliance Office Governance and Sustainability Superintendency José Izidoro Biazetto 158 Mossunguê street Curitiba - PR - 81200-240 Zip Code Photos Copel collection Content, Design and Consulting grupo report – rpt.sustentabilidade Michele Silva General Editing and Coordinator Adriana Braz and Carmen Cagnoni Writers Rubem Hojo Art direction Leandro Lopes Graphic design Tatiana Lopes and Lívia Amaral Eva Simas and Lívia Koreeda GRI Consulting Layout Lesley Sogl Translation Independent Auditors Ana Souza Deloitte Touche Tohmatsu Auditores Project and relationship management Independentes Ltda 204 Integrated Report 2022IntroductionAbout CopelStrategy and OutlookCorporate GovernanceCapital PerformanceAnnexes