AES Brasil Energia S A : 2022 Integrated Sustainability Report.

Integrated Sustainability Report

2022

Contents

Foreword		3	Competitiveness
Message from the CEO		Excellence in generation
2022 Highlights		Dam safety
Awards and recognitions		Customer focus
About the report		Financial performance

About us		9	Responsibility
Corporate profile		Governance
Strategy		Environmental
Product and service portfolio		Social
Business model
Materiality
2030 ESG Commitments
Energy transition
Innovation

Resilience		38	Attachments
Our generation		Complements to GRI and SASB contents
Portfolio management

45	GRI and SASB
	content index		121

54	Assurance report		131

104	Credits		134

FOREWORD

Message from the CEO				04
2022 Highlights				06
Awards and recognitions			07
About the report			08

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Message from CEO

GRI 2-22

2022 was yet another year of transformations for AES Brasil and marked by the implementation of our growth strategy in 100% renewable energy sources. Through innovation, we have been changing our daily operations, and we believe that Brazil is ready to lead a global, sustainable and productive energy transition. We are increasingly committed to be the best choice for our customers in the free market with resilience, competitiveness and responsibility.

	We added 456 MW of operational wind assets to
	our installed capacity by acquiring three Wind Power
	Complexes: Ventos do Araripe (PI), Caetés (PE), and
	Cassino (RS). When it comes to the construction of
	new assets, we point out the progress of the Tucano
	and Cajuína Wind Power Complexes. At Tucano, the
	construction is more than 95% complete and 24 out
	of the 52 wind turbines are operational. As regards
Clarissa Sadock	the Cajuína Wind Power Complex, we have completed
CEO from AES Brasil	78% of the works for Phase 1 and assembled 21 of
	the 55 wind turbines, while 18% of the construction
	milestones for Phase 2 have been completed. We
	expect the Tucano Complex to be fully operational in
	the first half of 2023, and the Cajuína at year-end.
	These achievements, coupled with the expansion
	strategy we have been implementing over the past

few years, have enabled us to practically double our 100% renewable energy installed capacity in the last six years. From 2.7 GW solely in hydroelectric power plants, we now have 5.2 GW of installed capacity distributed into hydro, wind and solar sources.

We have an increasingly diversified our portfolio, exploring solutions that benefit our customers, investors, communities and other agents, contributing to the decarbonization necessary to reach the global sustainable development goals. Green Hydrogen (H2V) is a new business opportunity that will become even more important in the Company's growth strategy. On this front, we signed a pre-agreement with Port of Pecém's Industrial Complex to conduct preliminary feasibility studies for the production of 2GW of H2V per year.

2022 Integrated Sustainability Report Foreword

456 MW

of operational wind assets acquired

100% of neutralized historical GHG emissions

In our industry, 2022 was a year marked by an important step towards the full opening of the free energy market for all high voltage consumers, which means more customers will be eligible to purchase energy directly from generators - and we are ready to serve them. We traded carbon credits for the first time, from the Salinas (RN) and Mandacaru (CE) Wind Power Complexes and studied new asset certification possibilities.

Another important lesson of 2022 was to learn how to operate in a post-pandemic world. We further appreciated human relations, health, safety and everyone's well-being. We paid close attention to our relationship with the communities near our assets, especially as regards their expectations and needs in terms of income generation and quality of life. In this pillar, I am pleased to inform that we have begun

2022 Integrated Sustainability Report Foreword

an important water security and productive inclusion initiative in the semi-arid region of the state of Rio Grande do Norte, where we are building the Cajuína Wind Power Complex. Another important achievement was the implementation of a technical training program in partnership with Senai-RN. This program is designed exclusively for women and trained 76 female workers on the Operation and Maintenance of Wind Farms. And I am also proud to announce that the Cajuína Wind Power Complex will be the fully operated by women, replicating our excellent experience at Tucano.

All these achievements have only been possible because we rely on a highly skilled and engaged team, whose development and satisfaction are always in the forefront of our minds. As a result of these efforts, for the second consecutive year, we were chosen

as the "Most Awesome Place to Work" in the energy industry, an award organized by Fundação Instituto de Administração (FIA), reflecting the opinion of those who at AES.

We continue to meet the goals set in our 2030 ESG Commitments, and I highlight two important achievements: we neutralized 100% of our historical greenhouse gas emissions since the beginning of our

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operations (1999) - three years before the scheduled target, and we also met the goal to have 25% of women in senior management positions. We are currently close to meeting the goal of 30% set for 2025.

As a result of a strategy that has responsibility as one of its pillars, for the second year in a row, we were the only Latin American energy company with "AAA" grade in MSCI ESG Rating. Furthermore, we maintained our "Negligible Risk" rating at Sustainalytics ESG Rating and for the 16th consecutive year, we will be part of B3's Corporate Sustainability Index (ISE).

Looking back at our journey, I emphasize how amazing it is to lead and be part of the AES Brasil team. I would like to thank all our employees, who remained focused on achieving our purpose of accelerating the future of energy, and our customers, communities, business partners, shareholders, investors and all stakeholders with whom we have a day-to-day relationship. Thank you for your trust.

Clarissa Sadock

CEO