Neoenergia S A : The action plan implemented in the hydroelectric plant has initiatives in the short, medium an ...

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Neoenergia has in its strategic plan the commitment to act with a focus on sustainable development, promoting responsible practices in the environmental, social and governance areas (ASG in Portuguese or ESG). In line with this, at the Teles Pires hydroelectric plant (MT/PA), controlled by the company, an action plan specifically focused on the business was implemented, with priorities such as the protection of water resources and the relationship with traditional communities and peoples. The analysis took place in a pioneering way between the hydrogeneration projects in the Amazon and, by the end of 2021, it will be implemented in three more assets managed by the company: Baixo Iguaçu (PR), Corumbá (GO) and Dardanelles (MT).

'The Teles Pires plant is located in a very important region for the country and, since the beginning of this project, we reaffirm the commitment to the environment and society. For example, we invest in biodiversity recovery actions such as the protection of 20,000 hectares of Amazon Forest.Now, with the ESG criteria formalized, we can give even more transparency to the actions and demonstrate to our stakeholders the responsibility for sustainable development',says José Paulo Werberich, Superintendent of Operations and Hydraulic Engineering at Neoenergia.

The action plan implemented in the hydroelectric plant has initiatives in the short, medium and long term, some of them already adopted by the company. All are based on five pillars: responsible action, healthy working relationships, respect for the environment, responsibility for traditional communities and peoples and transparency.

ESG strategy process

The process of developing the ESG strategy was initiated at the end of 2020, in partnership with the specialized consultancy Sitawi. The first stage was the preparation of a survey of best practices in the area and a sector diagnosis. The study was based on methodologies of international organizations specializing in sustainability guidelines, such as Vigeo Eiris, SASB (Sustainability Accounting Standards Board) and Hydropower Sustainability Guidelines.

In this process, 21 themes relevant to the hydroelectric plant were identified. Five of them are considered priorities for the plant's area of operation: promotion of socioeconomic development, relationship with traditional peoples and preservation of cultural heritage, relationship with the surrounding community, protection of water resources and mitigation and adaptation to climate change.

Social and environmental programs

Guided by these parameters, the Teles Pires plant and two other hydroelectric plants located in the Amazon were evaluated in relation to risk and opportunity management performance. 'The Teles Pires plant performed better than the others in the analysis, due to its performance guided by the environmental licensing process, which resulted in several socio-environmental programs,' explainsJosé Paulo.

Even before the implementation of the ESG strategy, 44 socio-environmental programs had already been started at the plant, 18 of them aimed at indigenous populations. Among the highlights is the discovery of new species of fauna and flora, contributing to the conservation of biodiversity in the biome. The hydroelectric plant is considered one of the most efficient in Brazil and has an installed capacity of 1,820 MW, enough energy to supply approximately 13.5 million inhabitants.

Strategic Objective and ESG

Neoenergia's 2018-2022 strategic plan integrates the company's commitment to sustainable development through its purpose, values and management policies.' The company's long-term vision is to contribute to a better future for the planet without compromising present results. Therefore, we have adopted a strategy and a business model guided by the carbon neutrality objective by 2050, for the generation of opportunities for economic, social and environmental development. Strategically, the group defines SDDs 7 and 13 as priorities in order to continue providing clean, intelligent and quality energy to Brazilian society',says Francisco Carvalho, Superintendent of Innovation and Sustainability.

The company guides its sustainable growth in the strategic expansion of clean energy generation projects, which represents almost 90% of the company's portfolio. In wind,the installed capacity will be tripled by 2023, reaching 1.6 GW. In 2020, Neoenergia announced its entry into large solar generation, with the construction of two plants.

Since January 2021, the company has been part of B3's Corporate Sustainability Index portfolio, which brings together companies with the best corporate governance and sustainability practices. In addition, it became part for the first time in the 11th portfolio of the Efficient Carbon Index (ICO2) of the Stock Exchange and is part of the qualified group of companies recognized with the Pro-Ethics label. The company renewed its commitment in 2007 to the ten principles of the Global Compact, an initiative that advocates action based on respect for human rights, labor rights, environmental preservation and the fight against corruption, and the 17 Sustainable Development Goals (SDGs), both of which are un.