Equatorial Energia S A : Sustainability Report Equatorial Energia 2021

SUSTAINABILITY REPORT

2021

G R U P O

CONTENTS

03	10	33	51	81	93
INTRODUCTION	EQUATORIAL ENERGIA	PERFORMANCE	VALUE RELATIONS	ENVIRONMENTAL	ANNEXES
About the Report	Profile	Scenario	Employees	Environmental Management	Aneel Indicators
Message from the CEO	Corporate Governance	Operational	Suppliers	Eco-efficiency	GRI and SASB content
	Ethics	Financial	Customers		index and ANEEL
			Society		Indicators
				Assurance
			Community
				Credits

INTRODUCTION1

SUSTAINABILITY	INTRODUCTION	Equatorial	Performance	Value	Environmental	Annexes	4
REPORT
Energia	Relations
2021

ABOUT THE REPORT

GRI 102-40,102-42,102-43,102-44,102-46,102-47,102-48,102-49,102-50,102-51,102-52,102-53,102-54,102-56

MATERIALS TOPICS

This is the 6th edition of Equatorial Energia Group's Sustainability Report.

Here you will access updated

information on the Group's companies. We brought an overview of our value generation to society. We will show the performance and impact of our activities from January 1 to December 31, 2021.

In every content, we strive for transparency and best reporting practices and reinforce our commitment to the information's integrity. This report is based on a widely recognized international reporting guideline, the Global Reporting Initiative (GRI), complying with the Essential level. Some indicators proposed by the Sustainability Accounting Standards Board (SASB) will also be reported.

Stakeholders and Materiality

Equatorial's materiality portrays the most relevant topics for our business model in the segment and external scenario. The list of material topics for 2021 follows the same as for 2020, which was defined based on benchmarking and online consultation with stakeholders.

The following audiences were consulted: employees, suppliers, public authorities, class associations and judicial representatives. The results were aligned with the leadership's vision for the consolidation of material topics.

Materiality will be reviewed in 2022.

HEALTH AND SAFETY OF EMPLOYEES

AND SERVICE PROVIDERS

ETHICS

INNOVATIVE BUSINESS MODEL

RETAINING AND

DEVELOPING TALENTS

RESPECTING THE

LABOR LEGISLATION

QUALITY OF SERVICES

REDUCING GREENHOUSE

GAS EMISSIONS

DEVELOPING

COMMUNITIES

SAFETY OF CUSTOMERS

AND SOCIETY

PRESERVING

BIODIVERSITY

SUSTAINABILITY

REPORT

2021

GRI 103-1

Material Topic	GRI, ANEEL and SASB
Disclosures

INTRODUCTION	Equatorial	Performance	Value	Environmental	Annexes	5
Energia	Relations

Impact Limit	Organizational	Relevant Stakeholders (Shareholders/
Investors, Customers, Employees,
for Equatorial	Involvement in
Community/Society, Suppliers and	Impacts to Stakeholders
(inside and	Impact (direct
Partners, Government, Environment,
outside)	and indirect)
Equatorial Operations)
			Issues linked to the violation of the Company's codes, standards and policies

Ethics

Management Form | GRI 103 Fighting Corruption | GRI 205-1,205-2

		Shareholders/Investors, Employees,	can lead to legal sanctions and reputational problems. By having the operations
In and Out	Direct and Indirect	Suppliers and Partners, Government,	affected, consequently, the return for shareholders/investors is impacted.
		Equatorial Operations	Problems of ethics and integrity can involve employees, suppliers and business
			partners to the Government.

Quality of Services

Reduction of

Greenhouse Gas

Emissions

Business Model Innovation

Talent Retention and Development

Health and Safety

of Employees and

Service Providers

Management Form | GRI 103 ANEEL Indicators

Management Form | GRI 103

Emissions | GRI 305-1,305-2

ANEEL Indicators

Greenhouse Gas Emissions and

Energy Resource Planning | SASB

IF-EU-110a.3

Management Form | GRI 103 ANEEL Indicators

Management Form | GRI 103

Employment | GRI 401-2

ANEEL Indicators

Management Form | GRI 103

Occupational Health and Safety |

GRI 403-2,403-3

Socio-Economic Compliance | GRI

EU16, EU18

Workforce Health and Safety |

SASB IF-EU-320a.1

In and Out

Direct

In and Out

Direct

InsideDirect

In and Out

Direct

In and Out

Direct

(Shareholders/Investors, Customers,

Employees, Community/Society,

Suppliers and Partners, Government

Equatorial Operations)

Shareholders/Investors, Community/Society, Environment, Equatorial Operations

Shareholders/Investors, Customers,

Employees, Suppliers and Partners,

Equatorial Operations

Shareholders/Investors, Employees, Suppliers and Partners, Equatorial Operations

Shareholders/Investors, Employees, Suppliers and Partners, Equatorial Operations

Good quality in services, following the standards and indicators of the regulatory body, impacts not only customers but also the Company's reputation in the market and its opportunities.

Management aimed at reducing GHG emissions from Equatorial's operations seeks to support the fight against climate change. These are a risk for the business and the generation of value for its stakeholders, as they cause more frequent and severe water scarcity scenarios, threatening mainly energy generation and sanitation services.

This management prevents the destruction of value for its operations and shareholders/investors and the community/society and the environment.

Innovation in the business model proposes updating management models and modernizing the work culture, seeking to generate positive impacts for the business and its stakeholders by reducing operating costs, optimizing time, greater productivity and better services delivered.

Management focused on training and retaining Equatorial's employees, suppliers, and third parties to promote improved service quality, employee and customer satisfaction, greater productivity, asset profitability and an improvement in the Company's image.

Management that values the health and safety of employees and service providers promotes safe working environments and conditions, with repercussions on employee productivity and satisfaction and reducing the number of absences.

continua...