Neoenergia announces Integrated Report 2021

Document follows the guidelines of the International Integrated Reporting Council (IIRC)

Neoenergia has just launched its Integrated Report, which presents the results of the year 2021 and was prepared in accordance with the guidelines of the International Integrated Reporting Council (IIRC). The document gathers the main financial and non-financial information of the year, as well as strategic actions and business development, with emphasis on generating value to the company’s interest groups.

The Integrated Report is part of the annual reports released by Neoenergia, aligned with ESG (environmental, social and governance) practices. The first publication to follow the IIRC recommendations was the 2020 Annual Report. To present the results for 2021, the company improved the information in two documents: in March, it released the Annual Report – ESG+F Statement and now the Integrated Report. In addition, the Fiscal Transparency Report and the Management Report – Standardized Financial Statements ) are also published annually.

The Integrated Report is a global trend for corporate reporting and is in line with the ten principles of the Global Compact – an organization of which Solange Ribeiro, vice-president director of Neoenergia, has been vice-president of the Council since September 2021 – and the 17 UN Sustainable Development Goals (SDGs).

Guided by a sustainable strategy, operating in all segments of the electricity sector, we have been committed for 25 years to creating value for society, shareholders, customers, employees and everyone with whom we relate. Our sustainable practices, aligned with ESG best practices and integrated into the business model, stand out and, today, we are in important sustainability and governance indices,” said Mario Ruiz-Tagle, CEO of Neoenergia.

In 2021, the company debuted at CDP do Clima, with a score A and remained in the portfolio of b3’s Corporate Sustainability Index (ISE) in its 17th edition. Last year, the company published the Green Finance Framework, on sustainable investments, and also held the first Investor Day in São Paulo (SP), an event in which it reinforced its commitment to transparency and the ESG agenda.

The ESG aspects are an integral part of the company’s strategy, which realizes its commitment by providing transparency to measurable ambitious goals. Among the targets for 2030 are to place the intensity of emissions below 50 grams of CO2 per kWh generated, aiming to achieve carbon neutrality in 2050; achieving zero net loss of biodiversity in new ventures; reach 35% of women in leadership positions; and have all of the major suppliers classified as sustainable.

Business evolution

The Integrated Report shows the company’s growth in financial and operational aspects. Between 2017 and 2021, Neoenergia increased its assets by 103.6%, its net revenue by 110.5% and its operating cash generation (EBITDA) by 218.4%, indicators that show sustained business developments. In 2021, it invested R$ 9.4 billion, 47.8% more than in 2020, with emphasis on the expansion of distribution networks and the construction of new transmission and renewable projects.

Today (06/29), there are 2,300 kilometers of transmission lines in operation, an increase of 123.3% compared to 2020, after the completion of the auction deliveries of April 2017, with an average anticipation of 15 months in relation to the deadline of the National Electric Energy Agency (ANEEL). The company acquired lot 4 at the December 2021 auction and, since 2017, has added 13 ventures.

The year 2021 was finalized with 689,484 kilometers of distribution lines in the five concessionairesNeoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP and MS) and Neoenergia Brasília (DF). Management at the company operating in the federal capital, which began in March, added 1.1 million consumer units to the customer base, reaching 15.7 million. In August, the company unified the brand and incorporated a new identity in distributors, consolidating the maturation of a management model based on modernization, technological innovation, sustainability and quality of service.

Demonstrating the strategy of decarbonization of the economy, the installed capacity in renewables reached 4,015 MW in 2021. The company started the commercial operation of Neoenergia Chafariz (PB), which is currently its largest wind venture and almost doubled the portfolio in this clean source, and also advanced with the construction of Neoenergia Oitis (PI and BA) and Neoenergia Luzia (PB), wind and solar projects. Termopernambuco (PE) was one of the winners of the Capacity Reserve Auction, held in December.

Social investment

The report presents the company’s social investments. In 2021, the Neoenergia Institute invested R$ 9.1 million with direct, encouraged and social undercredit resources. Among the projects focused on biodiversity and climate change, Coralizar restored 840 coral fragments in Porto de Galinhas (PE) and carried out an expedition to Rocas Atoll (RN), with the production of unpublished underwater maps in the country.

The company’s private social investment arm also focuses on the preservation of historical and artistic heritage and the promotion of cultural diversity, participating, among other initiatives, as founder of the Project Rescuing History, in partnership with BNDES, in support of the recovery of architectural and cultural heritage. In addition, the Inspire Award recognized 16 women-led initiatives that promote social transformation, and the Impactô social acceleration program focused on female leaders in its third edition.