Centrais Eletricas Brasileiras S A : Annual Report 2021 - Executive Summary

Eletrobras

Annual Report 2021

EXECUTIVE SUMMARY

Eletrobras I Annual Report 2021 I Executive Summary

The Eletrobras Group at a Glance

2

On July 1, 2021, we completed the

merger

of Amazonas GT into Eletronorte

We invested

R$ 508.5 million

in an extensive pipeline of technology and innovation projects across Eletrobras Group,

a year-on-yearincrease of 8%

21

employees received accolades in the first edition of the Eletrobras Group Innovation Awards, a program created to recognized innovative solutions developed in-house

Greenhouse gas emissions rose by

37%

as a result of increased dispatching of thermal power plants.

We launched our first Call for Social and Environmental Projects.

Ten projects were selected to receive total funding of

R$ 3 million

We also allocated

R$ 9 million to culture

projects,

R$ 3.9 million to supporting

initiatives, and

R$ 1.3 million to science and

innovation projects

Launched

the Global Alliance for Sustainable Energy as a co-founder

Eletrobras was certified in 2021 to issue green bonds to fund transmission projects, and has issued its first green bonds for

R$ 185 million

For the sixth consecutive year

we linked senior management's variable compensation to a set of ESG targets, including targets on climate change, energy efficiency, health and safety, research and development, supplier due diligence, and gender equity

Eletrobras I Annual Report 2021 I Executive Summary	3

The Eletrobras Group at a Glance

44%

EBITDA growth on 2020, to R$ 15,132 million

Eletrobras Group companies generated

R$ 10.1 billion

in federal, state and municipal taxes, equivalent to 20% of total Group revenues

We launched an ambitious Corporate Education program, called "Sustainability Pathway", to develop our employees', leaders' and senior management's EESG skills

Net income of

R$ 5.7 billion

in 2021 and

R$ 37.7 billion

over the last four years.

We further enhanced

transparency around sustainability: we implemented a dedicated channel to improve stakeholder engagement around EESG issues, and launched

a tool on our website that reports on our sustainability performance against different frameworks: GRI Standards, SASB, TCFD, Integrated Reporting Framework, Global Compact, and 2030 Agenda

We received a Bronze Class distinction in S&P's Sustainability Yearbook, a publication listing companies with outstanding sustainability governance.

We submitted to the UN,

along with the Brazilian Development Bank (BNDES), an energy compact titled "Decarbonizing islanded grids in the Amazon by replacing diesel generators with clean, renewable and affordable energy sources."

We received a Pró-

Ética Mark 2020-2021 from the Federal Audit Court for our parent company, Eletronorte and Furnas. The certification recognizes top management's commitment to integrity and compliance policies and procedures

We were recognized

for the first time with a Transparency Trophy 2021 presented by the Brazilian Association of Finance, Business Management and Accounting Executives (ANEFAC)

Eletrobras I Annual Report 2021 I Executive Summary

About

Eletrobras

13,433 employees,

a workforce reduction of 3%

R$ 5.7 billion

in net income in 2021

50,515.2 MW

it installed capacity in 2021

178,812 GWh generated

8.4% < than in 2020

105 power plants in operation

Our generation	39%	North
output	21%	Northeast
corresponds to	20%	Southeast
16%	South
28%
3%	Midwest

of Brazil's capacity:

97%

clean generation sources:

91.6% hydro

3.9 % nuclear 1.4% wind < 1% solar

4

We operate

40.2%

of transmission lines with a voltage higher than

230kVin Brazil

Eletrobras I Annual Report 2021 I Executive Summary	5

Building our materiality matrix

• A survey of a total of 1,074 internal

and external stakeholders

Eletrobras Group Materiality Assessment

• Interviews with executives and

experts

• An online survey of shareholders,

investors, Board members, customers,

workers, partners, suppliers and other

stakeholders

This yielded 11 MATERIAL TOPICS that we will report on, manage and monitor. 6 RELEVANT TOPICS which we may or may not report on depending on their relevance to each Group company

• RELEVANT TOPICS

1.Identification

Map out the company's relationship channels

Build a list of 18 topics describing the primary impacts from the Eletrobras Group's activities, based on benchmarking against the leading players in the global power sector

4. Approval

Approval of the final list by the Strategy, Governance & Sustainability Committee and the Board of Directors

A dynamic materiality matrix

The materiality matrix is

periodically revised to reflect current macroeconomic and

industry conditions

2. Analysis

Collect the views of different stakeholders through:

An online survey to rate the material topics on a scale of high impact to low impact

Deep-dive interviews with

Eletrobras executives and independent experts

Surveys using Eletrobras' communication channels: Ombudsman's Office, Investor Relations, Social Media and Contact Us

3. Prioritization

- Suppliers

- Waste

- Customers

- Regulatory environment

- Radioactive waste

- Nuclear safety

List of material topics SDGs

People

Communities 7,10,11, 16

Human rights 4,8, 9, 10, 16

Health, safety and well-being3,7,8

Planet		Governance
Water 6,12, 13		Risk management 12,16
Climate change	3, 7, 11,12, 13, 15	Governance, integrity
Energy transition	7, 9, 13	and ethics 12, 16

Refine the topics and assign weights to responses based on the perspectives of experts vs. executives

An Eletrobras Group workshop attended by the Executive Sustainability Management Committee and

70 representatives to prioritize the material topics

*The Eletrobras holding reports the topic Suppliers, given its importance for our business.

People management and development 4,7, 10, 11,16

Biodiversity and	Prosperity
ecosystem services 14, 15	Technology & Innovation 7, 8, 9	11 material topics