Highlights:

Environment and Climate

• Between 2016 and 2022, more than R$ 20 billion allocated to rotation of assets for promoting the energy transition.
• Renewable proprietary installed energy generation capacity reaches 95.9%.
• Enhancement of ENGIE Brasil Energia’s Journey for the Climate to include strategies of climate mitigation, adaptation, and resilience.
• More than 1,600 km² of reservoir surface area.
• More than 6,800 km² of area inspected and preserved.
Social
• Upgrading of programs of diversity, equity, and inclusion, with affirmative actions for women and the disabled/those with special needs.
• Zero fatal or severe workplace accidents.
• 100% of registered suppliers analyzed according to socio-environmental and ethical criteria.
• R$ 21.4 million in investments in the communities, of which the Company is a part.

Governance
• Listed on the Novo Mercado, a listing segment of B3 for companies observing the highest standards of corporate governance.
• Constant evolution in governance based on three pillars: integrated management, management of risks and integrity.
• Active program of Integrity and Ethics Committee monitored by the Board of Directors.
• 12 groups of risk mapped and mitigated, including data security and climate risk.

ENGIE Brasil Energia’s Sustainability Report incorporates data and information on the Company’s social, environmental, operational, and financial performance with a view to informing its various audiences of employees, investors, customers, communities and remaining stakeholders of challenges and progress made. It is a document which shows the evolution in the corporate strategy and its component parts on the basis of the ENGIE Group’s corporate purpose of acting to accelerate the energy transition to a carbon neutral entity.

The activities of ENGIE Brasil Energia are strategic to reaching global targets and commitments for reducing the ENGIE Group’s emissions. Thus, between 2016 and 2022, more than R$ 20 billion was allocated to the expansion of installed capacity in renewable energy, transportation of gas and transmission infrastructure. In other words, focusing on assets which foster the energy transition, this requiring annual investments to be multiplied four times during the period when compared to preceding years.

“Confident in the country’s capacity to grow, the Company continues alert to the opportunities for contributing so that the full potential of Brazil can be realized, supporting economic development, environmental conservation, and social justice. Our thanks go to those who share this optimism, believe in our commitments, and support this work in progress. Together, we continue acting to accelerate the energy transition”, Eduardo Sattamini, the Company’s Chief Executive and Investor Relations Officer comments.

In 2022, the Company’s asset portfolio reached 95.9% of its installed capacity in renewable generation. The expectation is that with the finalization of the sale of the Pampa Sul Thermoelectric Plant, forecast for the coming months, ENGIE Brasil Energia shall become the largest generator in Brazil solely of renewable energy.

The Company has already committed more than R$ 10 billion in investments to renewable generation over the next few years taking into account the implementation of the Santo Agostinho Wind Complex, in Rio Grande do Norte, which will have a capacity of 434 MW when complete; the start made on work of the Serra do Assuruá Wind Complex, in Bahia, with an output as much as 846 MW of installed capacity; and the Assu Sol Photovoltaic Complex, also in the state of Rio Grande do Norte, with a further 750 MW to be added to the generator park.

Transparency as the basis for ESG aspects

Besides looking at the core business, the environmental pillar is also beneficial for progress towards other important environmental goals and for this reason, in this past year, the Company has updated its environmental conservation strategy which is divided into 5 priority axes: Biodiversity; Water; Forests; Circular Economy/Waste; and Climate. Transversal to these topics as well as others relevant to the operations, are aspects related to risk management, legal compliance, to relationships with stakeholders, innovation, environmental performance and to environmental education.

In terms of the Social aspect or those impacts caused by people, ENGIE Brasil Energia reported improvements in occupational Health and Safety indicators as well as bringing the themes of Diversity and Inclusion to the center of discussions on human resources. The Company ended the year with 26.7% of women on its payroll, a 2.3 p.p. increase in relation to 2021. It was in this context therefore that various initiatives were structured with a focus on attracting and promoting women’s careers in the electric energy sector, of particular note being the first affirmative trainee program for female engineers.

Still from an internal perspective point of view, this year the report also highlights aspects which the Company considers for compensating executive officers, leadership positions and other employees. Given the strategic character for the businesses as well as the impact for the economy and society at large, the Variable Compensation Program has begun to include requirements earmarked to the management of climate issues for all executive officers as well as managerial positions in general, linked to meeting strategic business objectives.

With respect to suppliers, the ENGIE Group has two public commitments linked to a preference for partners which comply with important criteria relating to socio-environmental responsibility. In 2022, 100% of the 1,818 registered suppliers in the year were evaluated in relation to social criteria and 71 (4%) in relation to environmental criteria. As for the preliminary ethical analysis, conducted annually, 333 suppliers were disqualified due to infringements of rules in the Company’s internal procedures.

With a focus on responsibility as a social license to operate, in 2022, ENGIE Brasil Energia invested R$ 21.4 million in social projects including both voluntary and incentivized investments. To increase the celerity with which this agenda is implemented, the Company has also established 20 partnerships under the umbrella of the Goodwill Partnerships program which invites other companies, especially customers, to support social projects where the parties concerned carry on their activities in the same territories or involving themes which correlate with the social priorities of each business. Thanks to this program, which is structured within the strategic scope of the Social Responsibility area, it has been possible to increase resources employed by 30%.

About the report

As a basis for the Sustainability Report 2022, ENGIE Brasil Energia has developed a Materiality Study for revising the leading topics listed in previous years as well as to identify new themes not only important for the inclusion of ESG aspects in relation to business strategy but also for the purposes of disclosure to the stakeholders.

The document is aligned to Global Reporting Initiative (GRI) guidelines, a not for profits organization which proposes guidelines to ensure the quality and the comparability of the reports of organizations around the world. In the last few years and accompanying global tendencies for ESG management and reporting, the Company has added some of the recommendations of other institutions of reference on the theme to the report, among them the International Integrated Reporting Council (IIRC), the United Nations Global Compact, World Economic Forum, Sustainability Accounting Standards Board (SASB) and Financial Stability Board (FSB) – this under the umbrella of the Task Force for Climate-Related Financial Disclosure (TCFD).

ENGIE Brasil Energia’s Sustainability Report has external assurance conducted by an independent third party, Bureau Veritas. Through this process, report data is checked against information obtained directly from the company’s systems, thus increasing the reliability and consistency of the data.

The Company also shares the main data and the complete document on a specific page for the report in its website. The content can be accessed from engie.com.br/investidores/relatorios-de-sustentabilidade/.