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Report profile

This is the tenth consecutive year that ENGIE Brasil Energia presents its Sustainability Report to stakeholders. The report observes the guidelines of the Global Reporting Initiative (GRI), a not-for-profits organization that proposes guidelines for ensuring the quality of the reports of organizations throughout the world. GRI G4-29; G4-30

As with 2015 and with the purpose of aligning this Sustainability Report to the Integrated Report of the International Integrated Reporting Council (IIRC), ENGIE Brasil Energia has adopted the GRI G4 Core Standard. The Sustainability Report is subject to external independent assurance, this year the responsibility of EY (see the Assurance Letter published by the independent auditors), thus ratifying the commitment to transparency and providing information which is relevant to the understanding of ENGIE Brasil Energia’s businesses by the different stakeholders with which the Company interacts. GRI G4-32; G4-33

Based upon GRI guidelines, this edition contains information on the management of the Company and its operational, environmental, social and economic performance in the period from January 1 to December 31, 2016. The document also incorporates GRI sectorial supplement indicators and IIRC recommendations - especially those relating to the generation of short-, medium- and long-term value and to the description of the business model. The publication also includes content extracted from the Management Report, published in February 2017. GRI G4-28; G4-30

With this same purpose in mind, ENGIE Brasil Energia discloses socio-economic indicators in its quarterly presentations of economic-financial results, at the same time also maintaining the information current in its website. The consolidated financial performance of the Company and its directly and indirectly controlled companies can be accessed from the Financial Statements section. GRI G4-17

In the 2016 Report, the Company has undertaken a revision of the materiality and prepared in the preceding report cycle (2015). We have endeavored to refine the Relevance Matrix in order to report indicators which reflect real impacts and effective management. We have maintained the principle of classifying of the Company’s socio-environmental performance in a broader context of sustainability in order to identify aspects and impacts, which are common to all the segments and regions in which ENGIE Brasil Energia operates.

Hence, the definition of the indicators recorded in this Report was based on the following processes:

  • a) The revision of the 2015 Matrix, with an analysis as to the relevance of the report, considering existing management and practices, the positioning of sector companies and the availability of information as well as stakeholders’ influence in the decision-making process;

  • b) Consultation with representatives from different stakeholder groups for evaluating the relevance of the aspects in the 2015 Report;

  • c) The Sustainability Committee’s validation of aspects selected as a result of consultations with the stakeholders; and

  • d) Discussion and subsequent approval of the Relevance Matrix 2016, proposed by the Committee to the Company’s senior management. GRI G4-22; G4-23; G4-29

In the event of any questions, comments and suggestions with respect to this Report, please contact the Company’s Investor Relations Department by e-mail [email protected] or by calling +55 48 3221-7221. GRI G4-31

Stakeholder engagement

Constructed on the basis of a broad-based consultation with Company stakeholders, the Matrix in the 2015 Sustainability Report was used as the starting point for updating the materiality for the 2016 reporting cycle. It is the result of the engagement of 127 stakeholders in seven onsite panels during 2015 and organized in several regions where the Company has operations. Among the panel’s initiatives was the identification of the principal socio-environmental impacts arising from the Company’s activities. GRI G4-25; G4-26

Based on these impacts, the indicators’ report for the 2015 cycle and the Sustainable Management Policy, the Company prepared a report of aspects relevant to sustainability to be validated by outside stakeholders through two consultative mechanisms: an online questionnaire and structured interviews.

Sent to all the Company’s stakeholders, the online questionnaire was disclosed through the website and e-mail marketing and answered by 92 people.

Stakeholders were able to classify and opine in the questionnaire on the relevance of 22 topics of sustainability indicated by the Company. Complementary to this, 21 people selected by ENGIE and representing 13 separate groups were interviewed on a qualitative consultation basis.

Respondents’ profile:
GRI G4-24

Definition of material aspects GRI G4-18, G4-19, G4-20, G4-21, G4-27

After consulting its stakeholder representatives, ENGIE Brasil Energia established the themes to be treated as priority in the Report. This process involved consideration of the significance of the economic, environmental and social impacts of each aspect, as well as their effective influence on stakeholder evaluations and decisions.

In this context, relevant impacts related to all the organization’s activities, products, services and relationships were taken into account whether or not these same impacts occurred inside or outside the Company. On the basis of this analysis, the material indicators for the 2016 Report were pre-defined.

For the Company to verify its understanding as to the relevance of the themes put forward by the stakeholders, the relationship of the material aspects and indicators was presented to ENGIE Brasil Energia’s Sustainability Committee at an extraordinary meeting held on January 18, 2017. At the meeting, the Committee evaluated the aspects identified by the stakeholders and the respective GRI indicators selected for reporting.

Following this process, the classification of the relevance of some themes in the matrix was altered, although without interfering with the overall set of pre-selected indicators, which were subjected to the materiality tests suggested by the GRI.

Relevance matrix

Based on the criteria described, the Relevance Matrix in ENGIE Brasil Energia’s 2016 Sustainability Report contains 10 major themes deemed as relevant and which break down into material aspects, topics and indicators.

The following chart illustrates the Relevance Matrix consolidated according to material themes, GRI aspects and the extent of their impact, as well as the indicators for the 2016 report. In order to approximate to the model proposed in the Integrated Report of the International Integrated Reporting Council (IIRC), the chart also shows the capitals to which the themes, aspects and indicators are related. Finally, the last column shows the intersection between the material themes and the Sustainable Development Goals (SDG).


RELEVANT THEMESMATERIAL ASPECTS (GRI)EXTENSION OF THE IMPACTINDICATORSRELATED CAPITALS (IR)RELATED SDGs
Ethics and integrityEthics and integrityI/OG4-56; G4-57; G4-58Social and Relationship16
Combating corruptionI/OG4-SO5
ComplianceI/OG4-EN29; G4-SO8
Corporate governanceDG4-34; G4-38
Economic performanceEconomic performanceI/OG4-EC1, G4-EC2, G4-EC3, G4-EC4, G4-EC9Financial, Social and Relationship8 9
Environmental managementEnergyI/OG4-EN3; G4-EN5; G4-EN6Natural6 7 12 13 14 15
WaterI/OG4-EN8; G4-EN10
BiodiversityI/OG4-EN11, G4-EN12, G4-EN13, G4-EN14
GHG emissionsI/OG4-EN15, G4-EN16, G4-EN17, G4-EN18, G4-EN19, G4-EN20, G4-EN21
Effluent and wasteI/OG4-EN22; G4-EN23; G4-EN24
InvestmentsI/OG4-EN31
Grievance mechanisms and complaints filed on environmental impactsI/OG4-EN34
InnovationResearch and development activityI/ODMA Sectoral (formerly EU8)Intellectual, Social and Relationship, Financial9
Operational PerformanceInstalled and planned capacityI/OEU1; EU 10Financial and Manufactured7 8 9 11
Net energy productionI/OEU2
Energy efficiencyI/OEU11
Uptime factorI/OEU30
Relationship with clientsResults of client satisfaction surveysI/OG4-PR5; DMA Sectoral (formerly EU7); EU3Social and Relationship17
SocietyLocal communitiesI/OG4-SO1, G4-SO2;
DMA Sectoral (formerly EU20)		Social and Relationship3 4 5 10 12 16
Human rightsNon-discriminatoryI/OG4-HR3Human, Social and Relationship8 10 16
Mechanisms for airing grievances and complaints (HR)I/O
Labor practicesEmployeeI/OG4-LA1; G4-LA2Human, Intellectual, Social and Relationship3 5 8 10 16
Occupational Health and SafetyI/OG4-LA5; G4-LA6
Training and EducationIG4-LA9
Diversity and equality of opportunityIG4-LA12

* I - Inside the Company
O - Outside the Company

GRI CONTENT INDEX

IndicatorPageObservation
STRATEGY AND ANALYSIS
G4-1Message from the Administration
ORGANIZATIONAL PROFILE
G4-3Corporate Profile
G4-4Corporate Profile
G4-5Corporate ProfileCorporate Information
G4-6Corporate Profile
G4-7Corporate Profile
G4-8Corporate ProfileBusiness Model
G4-9Principal Indicators
G4-10Social and Relationship Management
G4-11Social and Relationship Management
G4-12Social and Relationship Management
G4-14Corporate Profile
G4-14Corporate GovernanceEnvironmental Management
G4-15Social and Relationship Management
G4-16Social and Relationship Management
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17About the Report
G4-18About the Report
G4-19About the Report
G4-20About the Report
G4-21About the Report
G4-22About the Report
G4-23About the Report
STAKEHOLDER ENGAGEMENT
G4-24About the Report
G4-25About the Report
G4-26Social and Relationship ManagementAbout the Report
G4-27About the Report
REPORT PROFILE
G4-28About the Report
G4-29About the Report
G4-30About the Report
G4-31About the Report
G4-32About the Report
G4-33About the Report
GOVERNANCE
G4-34Corporate Governance
G4-38Corporate Governance
G4-39Corporate Governance
ETHICS AND INTEGRITY
G4-56Corporate Governance
G4-57Corporate Governance
G4-58Corporate Governance
SPECIFIC STANDARD DISCLOSURES
ECONOMIC PERFORMANCE
G4-EC1Principal IndicatorsEconomic Financial ManagementSocial and Relationship Management
G4-EC2Business ModelCorporate GovernancePartial response.
G4-EC3Social and Relationship ManagementThe great difference between the figures reported in 2015 and 2016 for contributions to ELOS stems from the refinement of the analysis. In 2015, only contributions related to administrative expenses were considered, while the 2016 report also considered extraordinary contributions (deficit adjustment), which is the criterion most closely adherent to the indicator guidelines.
G4-EC4Reduction of IT at ENGIE Brasil Energia (São Salvador) of R$ 13.688 thousand. Reinvestment incentive (Ponte de Pedra) for the total of R$ 4,868 thousand also highlighted.
PROCUREMENT PRACTICES
G4-EC9Social and Relationship Management
ENERGY
G4-EN3Environmental Management
G4-EN5Environmental Management
G4-EN6Environmental Management
WATER
G4-EN8Environmental Management
G4-EN10Environmental Management
BIODIVERSITY
G4-EN11Environmental Management
G4-EN12Environmental ManagementPartial response. The Company is updating information on the measurement of direct and indirect impacts, both positive and negative.
G4-EN13Environmental Management
G4-EN14Environmental ManagementPartial response. The Company is updating information on the species with habitats located in areas affected by their operations.
EMISSIONS
G4-EN15Environmental Management
G4-EN16Environmental Management
G4-EN17Environmental Management
G4-EN18Environmental Management
G4-EN19Environmental Management
G4-EN20Environmental Management
G4-EN21Environmental Management
EFFLUENT AND WASTE
G4-EN22Environmental Management
G4-EN23Environmental Management
G4-EN24Environmental ManagementThere were no significant spills in 2016.
COMPLIANCE
G4-EN29In fiscal year 2016, no fines or non-monetary sanctions were incurred for non-compliance with environmental laws and regulations. Similarly, no arbitration actions were brought against the Company.
GENERAL
G4-EN31Environmental Management
G4-EN34There was one complaint concerning environmental impacts processed in 2016 and solved in the same period.
EMPLOYMENT
G4-LA1Social and Relationship Management
G4-LA2Social and Relationship Management
OCCUPATIONAL HEALTH AND SAFETY
G4-LA5Social and Relationship Management
G4-LA6Social and Relationship Management
TRAINING AND EDUCATION
G4-LA8Social and Relationship Management
G4-LA9Social and Relationship Management
G4-LA10Social and Relationship Management
DIVERSITY AND EQUALITY OF OPPORTUNITY
G4-LA12Social and Relationship Management
NON DISCRIMINATION
G4-HR3Social and Relationship Management
G4-HR5Social and Relationship Management
G4-HR6Social and Relationship Management
MECHANISMS FOR AIRING GRIEVANCES AND COMPLAINTS RELATING TO HUMAN RIGHTS
G4-HR12Social and Relationship Management
LOCAL COMMUNITIES
G4-SO1Social and Relationship Management
G4-SO2Social and Relationship Management
COMBATING CORRUPTION
G4-SO5Corporate Governance
COMPLIANCE
G4-SO8In 2016, ENGIE Brasil Energia received no fines or non-monetary sanctions due to non-compliance with laws and regulations.
PRODUCTS AND SERVICES
G4-PR5The latest customer satisfaction survey was conducted in 2014. It is expected that a new edition will be held in 2017.
SECTORAL
G4-EU1Corporate Profile
G4-EU2Management of Quality
G4-EU3Social and Relationship Management
DEMAND-SIDE MANAGEMENT (FORMERLY EU7)Business Model
Research and Development (FORMERLY EU8)Business Model
G4-EU10Business Model
G4-EU11Management of QualityUnlike what was published in the Company's Sustainability Report for 2015, Aneel RN 500 does not apply to the William Arjona Thermoelectric Plant, the said resolution relating exclusively to coal-fired plants.
G4-EU13Environmental ManagementPartial response. The Company is updating information that refers to the measurement of the indicator.
DMA EMPLOYMENT (FORMERLY EU14) - manpower qualification practicesSocial and Relationship Management
COMMUNITIES (FORMERLY EU20)Social and Relationship Management
G4-EU30Management of Quality

Assurance letter

Independent Auditors’ Limited Assurance Report on the Engie Brasil Energia S/A’s Annual Sustainability Report based on GRI guidelines, version G4 and Reporting Option “Core”.

The Board of Directors, Management and Shareholders of
Engie Brasil Energia S.A.
Florianópolis - SC

Introduction

We were engaged by the management of Engie Brasil Energia S.A. (“Engie” or “Company”) to present our limited assurance report on the Global Reporting Initiative (“GRI”) over the Key Performance Indicator´s (KPI´s) contained in the Annual Sustainability Report, for the year ended December 31, 2016.

Engie´s management responsibilities

Engie´s management is responsible for preparing and presenting appropriately the information contained in the Annual Sustainability Report for the year ended December 31, 2016, in accordance with criteria, assumptions and methodologies GRI – Version 4 and reporting option "Core" and for the internal controls as management determines is necessary to enable the preparation of information free from material misstatement, whether due to fraud or error.

Independent auditors’ responsibility

Our responsibility is to express a conclusion on the Engie’s Annual Sustainability Report GRI KPI´s for the year ended December 31, 2016, based on the limited assurance work conducted in accordance with Technical Release № 07/2012, approved by the Brazil’s National Association of State Boards of Accountancy (CFC) based on NBC TO 3000 (Assurance Work Other Than Audit or Review), issued by the CFC, which is equivalent to international standard ISAE 3000, issued by the International Federation of Accountants, applicable to non-historical information. These standards call for compliance with ethic requirements, including independence and work carried out to obtain limited assurance that the Engie’s Annual Sustainability Report for the year ended December 31, 2016 is free of material misstatement.

A limited assurance work conducted in accordance with NBC TO 3000 (ISAE 3000) consists mainly of inquires of management and other professionals from Engie who were involved in the preparation of the Annual Sustainability Report, as well as of the application of additional procedures deemed necessary to obtain evidence which enables us to conclude on the limited assurance on the Annual Sustainability Report. A limited assurance work also requires additional procedures, as the independent auditor becomes aware of matters which lead him to believe that the Annual Sustainability Report information may contain material misstatement.

The selected procedures relied on our understanding of the aspects concerning the compilation and presentation of the Annual Sustainability Report information in accordance with criteria, assumptions and own methodologies from Engie.

The procedures comprised:

  • The planning of the work, considering the materiality, the volume of quantitative and qualitative information and the operating and internal control systems which supported the preparation of Engie’s Annual Sustainability Report information for the year ended December 31, 2016;
  • The understanding of the calculation methodology and the procedures for preparation and compilation of Annual Sustainability Report through interviews with management in charge of preparing the information;
  • The application of analytical procedures on quantitative information and sample verification of certain evidence supporting the data used for the preparation of the Annual Sustainability Report;
  • Comparison of the financial indicators and the GRI KPIs with the financial statements and/or accounting records.

The procedures applied in this limited assurance work also comprised compliance with the guidelines of the structure for development of the GRI - G4 applicable in the preparation of the information contained in the Engie’s Annual Sustainability Report, concerning the year ended December 31, 2016.

We believe that the evidence obtained in our work was sufficient and appropriate to provide a basis for our limited conclusion.

Scope and limitations

The procedures applied in a limited assurance work are substantially less in scope than those applied in an assurance work aimed at issuing an opinion on the GRI KPIs in the Annual Sustainability Report. Therefore, we are not in a position to obtain assurance that we are aware of all matters, which would be identified in an assurance work aimed at issuing an opinion. If we had performed a work in order to issue an opinion, we could have identified other matters or misstatements in the Annual Sustainability Report GRI KPI´s. Accordingly, we did not express an opinion on these KPIs.

The review and execution of tests on Engie internal controls related to the indicators contained in the Annual Sustainability Report were not part of our scope.

The non-financial data is subject to further inherent limitations than financial data, given the nature and diversity of methods used to determine, calculate or estimate such data. Qualitative interpretations of materiality, significance and accuracy of data are subject the individual assumptions and judgments. In addition, we did not carry out any work on data reported for prior periods nor in relation to future projections and goals.

Conclusion

Based on the procedures performed and herein described, nothing came to our attention that makes us believe that the GRI KPIs in the Engie’s Annual Sustainability Report, for the year ended December 31, 2016, were not measured and stated, in all material respects, in accordance with criteria, assumptions and methodologies for the development of the Global Reporting Initiative - G4 (reporting option "Core").

São Paulo, April 25th, 2017.


Ernst & Young
Auditores Independentes S.S
CRC-2SP015199/O-6

José Ricardo de Oliveira
Contador CRC 1PR041552/O-9

Credits

GENERAL COORDINATION

ENGIE Brasil Energia
Investor Relations

GRI CONSULTANCY, REDACTION, EDITION

Relata Comunicação e Sustentabilidade



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Report Sustentabilidade

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