Energisa

Actions and Indicators

Actions and Initiatives

Environment

Supported by an Environmental, Health and Safety Policy reviewed and rolled out in 2019, Energisa strives to ensure a harmonious coexistence with the environment around its operations, rationally using natural resources and continually improving its environmental performance. The policy provides guidelines around issues to be followed to ensure product and service quality, in line with economic feasibility, efficient resource use and the health and safety of its employees and the community.

The processes are standardized by the Environmental, Social and Health and Safety Management System (SGMASS), a tool compatible with ISO 14001 (environment) and OSHAS 18001 (health and safety).

To minimize the effects of our geographical coverage, all Energisa Group companies have an Environmental Department. In order to foster the sharing of environmental management experiences and improvements, in 2019 an environmental workshop was conducted and participated in by all the Group’s units. Work groups involving each distribution company’s departments are also formed to address specific topics.

R$ 286.8 was invested in 2019 in environmental management initiatives, 616% more than in 2018.

Click here to see our Environmental, Health and Safety Policy

Environmental Actions and Initiatives
Biodiversity

Managing impacts on Biodiversity and Ecosystems during operation and projects

Due to the nature of our business, our main impact on biodiversity comes from the construction of high-voltage tension lines and distribution grids. To mitigate these impacts, we work alongside the municipal and state governments and continually train our technical in-house and outsourced staff to ensure the correct procedures are followed for trimming trees.

Wildlife is handled sustainably and projects avoid clearing land as much as possible. In cases where vegetation clearance is necessary, the impact is always mitigated by forest compensation and community initiatives. The company studies alternative locations and submits the studies required for licensing or permits to the environmental authorities for extensions of grids and lines that cross permanent preservation areas. Compensations are made to keep the impacts to a minimum, with widespread plantation, recovery of springs and fencing off of areas to promote natural rewilding.

We build high-voltage distribution lines and substations in accordance with the legislation in each state. Simplified Environmental Reports (RAS) are prepared, and when necessary preventive archeology studies are carried out, supervised by the National Archaeological Heritage Institute (IPHAN), which indicate the possibility of archaeological remains with an impact on cultural historic heritage.

Click here and see Energisa Group’s programs and initiatives.

Sustainable Resource Use

Promoting better use of natural resources while supporting the circular economy

Water

In addition to installing water consumption control equipment, such as self-closing taps in washrooms, active conscientious consumption campaigns are run, content published on the Internet and stickers and notices made, amongst other initiatives. Talks are given at schools for communities, on dates such as Water Day and Environment Week, and informative leaflets handed out.

At our green buildings, washrooms and canteens are fitted with highly efficient water-saving equipment, with timers on showers and taps. Furthermore, the washing of floors, cleaning of windows and watering of gardens reuse captured rainwater and water returning from the air conditioning system, which generates hydric efficiency of 23%.

In 2019, Energisa Minas Gerais initiated the Piipee pilot project, which installed dispensers in toilets to release an environmentally friendly, biodegradable solution to clean the facilities without using water.

Waste Management

Our operations aim to minimize waste and ensure all waste is properly disposed of. There are internal campaigns based around the 3Rs (Reduce, Re-utilize and Recycle), in both the administrative department and in operations. Internal campaigns disseminate the matter and encourage good practices, such as using digital documents. Leaflets are distributed externally and talks given at schools, with consumers encouraged to use digital bills and direct debit, thus reducing our printing volume.

The waste generated in the operations is disposed of properly and responsibly. The insulating oil used in equipment is regenerated and industrial lubricating oil recovered, ensuring the recycling of this material. Nonhazardous waste, such as paper, packaging and scrap, is collected selectively and part of this waste is sold for recycling, in order to contribute to the recycling chain and reduce our environmental footprint. Air-conditioning units, furniture and IT equipment is also auctioned, where companies are required to dispose of the items in an environmentally correct way.

Energy Use

Internal and external campaigns seek to reduce energy consumption. Our Electrical Efficiency Program, along with Our Energy,  encourages the rational and efficient use of electricity in low-income communities by way of educational initiatives geared towards raising awareness to combat waste and change habits, encouraging conscientious consumption.

In the first year of Our Energy in Rondônia, upwards of 6 thousand socially vulnerable people benefited from talks and new lamps and refrigerators. More than R$ 16 million was also invested in reducing the energy consumed by public lighting, providing a saving of more than R$ 4 million in 17 of the state’s municipalities.

An organic photovoltaic system was installed our green buildings, with technology that uses polymers to generate electricity. Energisa Paraíba is following the same standard in building the head office of its regional Sousa branch, with elements that help lower energy and water consumption. Energisa Acre initiated the retrofitting of its head office, replacing fluorescent lamps with LED lamps. Energisa Sergipe changed the air-conditioning units in its head office, enabling it to reduce consumption by up to 70%, also replacing all lamps at substations.

Click here and see Energisa Group’s programs and initiatives.

Air Emissions

Fleet management measures are adopted to mitigate greenhouse gas emissions, such as giving preference to biofuels, preferably ethanol. We use S10 diesel in our diesel vehicles, which reduces white smoke and protects the engine from wear and tear and the formation of deposits.

We also carry out periodical preventive services on all vehicles in accordance with the existing environmental legislation, and a policy for renewing the fleet in all units, which involves monitoring and replacing the vehicles, where necessary. Our vehicles also have speed control systems in on-board microcomputers, which in addition to helping improve fuel consumption efficiency help reduce the number of road accidents.

Another initiative was the inclusion of climate change in discussions of the Sustainability Committee, in order to raise employee awareness about the adoption of practices and initiatives, in both their professional and personal lives, which help reduce greenhouse gas emissions.

Click here and see Energisa Group’s programs and initiatives.

Social

At Energisa we recognize that people are an essential asset in continuously improving results for our business and the community. We prioritize investment in the professional development of people who share our values, identify with our goals and can help to improve the quality of service we deliver.

To guarantee a high level of commitment from its employees, Energisa Group carries out staff development based on mutual respect and improving the quality-of-life in the workplace. In addition to organizing the workplace and social dialog, Energisa aims to promote equal opportunities and diversity.

Focusing on social and environmental matters and our inclusive approach helps us create long-term value for the company and the communities we engage with.  Energisa is committed to respecting community rights and contributing to their economic and social progress. An express model across the entire value chain: analyzing the needs of communities from the new business development phases; taking into account the social and environmental issues that could make our operational work sustainable and managing our businesses to make them sustainable development platforms in their geographies.

Social Actions and Initiatives
Heath and Safety

Guaranteeing the health and safety of employees and other stakeholders

Energisa strives to implement best practices in preventing workplace injuries as part of our ambition to be an industry leader in occupational health and safety. We regularly revisit our processes and invest in training and disseminating a safety culture in all our operations to achieve this.

An Executive Health & Safety Committee provides tone from the top and ensures that our directors and other leaders address strategic health and safety issues. Our processes and tools for managing safety, risks and impacts are also monitored against a set of indicators, and performance is assessed on a monthly basis using a Balanced Scorecard (BSC) for each business unit’s leadership team and coordinators.

We will continue working toward a target of zero injuries involving direct and third-party employees, as part of our goal of becoming an industry leader for occupational safety. Achieving these goals will involve a range of employee and contractor management initiatives.

Click here and see Energisa Group’s programs and initiatives.

Training and Development

Promoting greater commitment through talent retention and coaching

Energisa preferably sources talent from within its existing talent pool, providing attractive career prospects for our employees. We use a Skillset Management model in which candidates for each position are required to demonstrate specific skills, in addition to Energisa’s core skills. These skills are further developed in training and capacity building initiatives.

Field crews attend classroom training, technical visits and distance learning courses on electrical safety and operational procedures, helping to develop our teams’ hard and soft skills. Training is supported by state-of-the-art learning tools, including simulations, virtual rooms and laboratories.

Managers also attend our Leadership Academy, an accelerated training program, while employees in other positions receive training based on Individual Development Plans prepared during Performance Assessments.

A Succession Program trains leaders to hold key positions. Following the Group’s recent expansion through acquisitions, the program was revisited in 2019 to identify opportunities and each employee’s potential.

The number of employees receiving training increased in 2019, especially as part of programs implemented at Energisa Acre and Energisa Rondônia. During the period, R$ 6.5 million was invested in a total of 16,246 training attendances, or an average of 60.47 hours of training per employee.

Click here and see Energisa Group’s programs and initiatives.

Promoting Diversity

Promoting equal opportunities and treatment and prohibiting discrimination.

Diversity is a Group value that positively affects our business results and supports progress on equity and equal opportunity. At year-end 2019, our Group had 2,803 women employees, representing 19.3% of the total workforce. Women held 21.9% of leadership positions.

The Code of Ethics and Business Conduct is responsible for ensuring compliance with and enhancing our Code of Ethics and Conduct. It promotes the moral values and universal principles of social well-being that underpin the Company’s business, always prioritizing ethics, respect, transparency and truth in relations in order to cultivate a wholesome, healthy and harmonious workplace. All new employees receive a printed copy of the Code, as well as periodic training on the matter.

Energisa has a proprietary Whistleblowing Channel with rules established in a Normative Instruction approved and reviewed by its CEO. The basic rules are published on the company’s site and preserve anonymity and information confidentiality, amongst other things. The whistleblowing channel is internal, and depending on the case at hand Energisa hires external experts to investigate the charges reported.

Click here and see Energisa Group’s programs and initiatives.

Constumers

Providing services with agility, efficiency, quality, respect and integrity.

A culture of service is embedded in the strategy undertaken by our Customer Experience department, which is focused on programs to enhance the customer experience.  The programs focus on building new relations with consumers, which will use different communication methods in studies and tests to expand our communication channels.

Our distribution customers are classified as residential, rural and small business customers; medium- and high-voltage customers (manufacturing sites and other large operations); and government customers (municipal governments and state and federal agencies). To increase synergies, standardization, optimization and efficiency, customer service is provided by a single contact-center company, Multi Energisa Serviços S.A.

Energisa has always been committed to working alongside local governments to fight energy poverty and promote access to energy for vulnerable people in its concession areas. It also encourages the rational and efficient use of electricity in low-income communities by way of educational initiatives geared towards raising awareness to combat waste and change habits, encouraging conscientious consumption.

Click here and see Energisa Group’s programs and initiatives.

Supply Chain Management

Extending social and environmental responsibility through suppliers

To forge enduring business relationships with our supply chain, we work not only to ensure the quality of the services and products we procure, but also to develop suppliers that are critical for the proper operation of our power systems and for the individual and collective safety of our employees and consumers.

Requirements on the quality standards to be met to ensure customer satisfaction and continuous improvement are described in two documents: materials manufacturers are required to implement the Energisa Group Supplier Quality Management Manual, based on the most recent edition of ISO 9001:2015. Service providers are required to conform to NDU 036 – Onboarding of Distribution Services Suppliers, a standard implemented in 2019.

Our Code of Ethics and Business Conduct sets out the fundamental conditions that suppliers must meet to be contracted by Energisa: complete compliance with all legislation applicable to the contracted services;  environmental conservation; non-use of child or slave labor and respect for human rights.

The Group has simultaneously implemented a supplier assessment process to detect and prevent the risk of severe impacts on human rights and health and safety.

We launched a Quality Assurance Certification purchase listing, which consists of an in-depth checklist to evaluate the entire production system of suppliers. The list includes assessing the procedures of suppliers applied to sub-suppliers, which can involve second party assessments, periodical assessments of financial risk, scoring system, ranking and other things. It also checks that the supplier maintains a multidisciplinary team for evaluation of sub-suppliers based on the purchase demands of raw materials or components.

In 2019, 18 suppliers were certified, with 11 Quality Assurance terms being extended, and seven new suppliers entering the process. Purchases from QA-certified suppliers now account for 40% of total purchases. Our aim is to have at least 50% of material and equipment expenses enlisted in the program by 2021.

Click here and see Energisa Group’s programs and initiatives.

Communities and Local Development

Managing our impact on communities is essential for a responsible company.

The respectful involvement with local communities is fundamental to the success of our long-term operations and projects. Energisa does this several ways: by creating new jobs, providing training in useful skills, encouraging local companies to comprise our supply chain and assessing the direct and indirect impacts of projects and operations on the local population.

Stage one of planning a project involves assessing the impact to understand potential effects on local communities, including the health of people and the environment. In this process we engage with communities to ascertain their priorities and concerns. Project management works to mitigate possible adverse consequences, working in conjunction with our technical and commercial teams.

Aware of our responsibility towards the social, cultural and economic life in the communities where we operate, Energisa runs initiatives that positively impact society. The social investments policy prioritizes educational and cultural initiatives and the fostering of economic and social development in the communities. The Cultural Ormeo Junqueira Botelho Foundation runs the initiatives, an institution funded by Energisa Group and its distribution companies.

The safety of the population in municipalities served by the distribution companies is monitored to detect risks of accidents in contact with energy grids. The companies use the same criteria adopted by Fundação Coge and Abradee, standard setters for sector metrics monitoring and analyzing the frequency and severity of accidents caused both by negligent use of electricity and unauthorized intervention in grids. The aim is to eliminate or mitigate risks, such as breaching of cables, scheduled power outages and accidents involved in the operation, in order to guarantee an efficient and preventive approach.

Click here and see Energisa Group’s programs and initiatives.

Governance

Doing business transparently and openly is a commitment we work hard to maintain and whenever possible we promote transparency throughout our sector. We have a comprehensive set of codes, policies and guarantee processes that state how we intend to operate more responsibly.

Energisa’s corporate governance model aims to ensure equitable access to information for stakeholders, in order to guarantee an open and transparent dialog.

Our governance framework consists of the Board of Directors, Fiscal Council and Executive Board, with the support of Committees contributing to decision-making.

Click here and see Energisa Group’s governance framework.

Energisa has been a listed company since 1907, entering Level 2 Corporate Governance of B3 (Brasil, Bolsa, Balcão) in July 2016, and is one of the listed companies that follows the best market transparency and governance practices.

Every year we publish a memorandum about the Brazilian Corporate Governance Code, describing the 54 practices we adhere to and the reasons why certain practices are not adopted.

Ethics and Integrity

Energisa views ethics as a core value for conducting business and engaging with its stakeholders. The principles and rules of conduct – applicable to employees, executives and suppliers and third parties – are set out in the Code of Ethics and Conduct. The document sets out the practices and standards of conduct that should be followed every day, to always support our corporate mission and guarantee a fair and harmonious coexistence between Energisa and its stakeholders.

Ethics Committee

The Ethics Committee is responsible for ensuring compliance with and enhancing our Code of Ethics and Conduct. It promotes the moral values and universal principles of social well-being that underpin the Company’s business, always prioritizing ethics, respect, transparency and truth in relations in order to cultivate a wholesome, healthy and harmonious workplace.

The Committee is tasked with implementing, disseminating, training, reviewing and updating the Code of Ethics and Conduct and whistleblowing channel, in addition to carrying out investigations and proposing corrective measures regarding violations of the Code.

The Committee answers directly to the Group’s CEO. In 2019, two positions were added to the committee, in order to promote greater diversity. It closed the year with eight serving members, for terms of three years that can be extended, operating in accordance with the internal regulations approved in the year.

Integrity Program

This matter is the responsibility of the Risk and Audit Practice, which answers to the Financial Vice Presidency and the Audit and Risk Committee.

Company senior management is also committed to the integrity program and is represented by the Ethics Committee and the Audit and Risk Committee of the Board of Directors, both appointed by the Board of Directors.

Energisa Group adopts a set of frameworks, procedures and practices to prevent, detect and remedy fraud and irregularities, which amongst other elements includes the following: (i) template of unacceptable conduct and conflicts-of-interest; (ii) Energisa Ethics Committee; (iii) Energisa Risk and Audit Committee; (iv) Policy for Related-Party Transactions; (v) Securities Trading Policy; (vi) risk and audit management, mapping out critical and integrity processes; (vii) supplier audit; (viii) related party audit; and (ix) whistleblowing channel.

Integrity issues are also an important part of the company’s personnel policy and are set out in the Executive Compensation and Appointment Policy approved by the Board of Directors and available on the company’s site.

New employees undergo ethics and integrity training, and semiannual periodical training (remote) was introduced in the 2nd half of 2019.

Whistleblowing Channel

The Company has a proprietary Whistleblowing Channel with rules established in a Normative Instruction approved by its CEO in Feb/2010 and revised in Mar/2017. The basic rules are published on the Company’s site and preserve anonymity and information confidentiality, amongst other things. The whistleblowing channel is internal, and depending on the case at hand the Company hires external experts to investigate the charges reported.

Reports are received, classified and registered in an internal computer system. The auditors in charge may contact the whistleblowers in order to obtain further information, after which the reports are submitted to the Committee.

The Committee analyses the demands received by the access channels, and determines the applicable measures based on the Group’s internal regulations. The Risk and Audit Committee also monitors these issues in addition to a specialist firm if necessary. After the investigation, the responsible department prepares the detailed report with recommendations, which is submitted to the Committee for approval. Any cases involving members of the committee are handled directly by the Board of Directors.

Click here to see our Policies.

Indicators

Energisa aims to drive change and detect new market opportunities early, aware that the starting point is knowing the context in which the Group operates.

For this reason, the EESG (Economic, Environmental, Social and Governance) issues identified in the materiality matrix should be closely associated with the Company’s operating strategy. These issues will be split into indicators denoting solid data about Energisa’s commitment to sustainable development.  These indicators are used not only for ex post assessments, but to advance decisions and to favor a proactive approach over a reactive approach.

We are disclosing the annual EESG performance indicators of the Group’s distribution companies. A more in-depth analysis into both indicators and qualitative aspects of the issue is carried out annually and published in our Sustainability Report.

After the materiality assessment, consolidated indicators will also be presented for the Group taking into account the requirements of the Global Reporting Initiative (GRI), in addition to the accountability standards of Aneel, Sustainability Accounting Standards Board (SASB), the UN Global Compact and core sustainability indexes. In order to improve the transparency and quality of the information published to our shareholders and other stakeholders, we will also publish a summary of core quarterly indicators.

Indicators EESG

To access the indicators sheet, click here.