This report contains information on Chesf’s economic, financial, social, and environmental performance in fiscal year 2017, including all the company’s operations in Northeast Brazil: 12 hydroelectric plants, two wind farms and one biofuel thermal plant. It also presents information on the 10 projects - generation and transmission - that Chesf has in Specific Purpose Entities (SPEs), although they were not included in the scope of analysis of GRI Standards indicators.
The document follows the GRI Core Standards. In order to find the indicators more easily, the numbers appear in parentheses immediately after the topic to which they refer. Through a materiality process, 168 items were selected for disclosure, broken down into 40 organizational profiles, 31 management approaches, 72 on performance (13 economic, 2 environmental, and 30 social) and 25 from the sector supplement. The indicators pointed out in this process reflect the work of Chesf regarding its strategies and the challenges faced in 2017, based on the views of its main stakeholders.
This publication, as well as all indicators considered material for the business, may be found at: www.chesf.gov.br > Sustentabilidade > Visão Geral > Relatórios de Sustentabilidade
MATERIALITY PROCESS
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The topics addressed in this report were defined through a materiality process based on the specific standards of GRI G4 and Standard. Tools such as RepRisk1, and the Global Reporting Initiative (GRI) study “Sustainability Topics for Sectors: What do stakeholders want to know?” were used to support the process.
The Company opted to consult internal stakeholders (executives) to prioritize the topics identified during the last cycle (2016), in addition to considering sector contents and interviews conducted from December 4 - 7, 2017 with the Chairman, four directors (Engineering, Operation, Administrative, and Financial), five leaders (in the areas of Governance, Strategic Planning and Sustainability, Environment, Institutional Relations, and Communities and Human Resources) and, in writing, with the CEO of Eletrobras.
The criteria used for prioritization involved issues important to Chesf’s business and strategy, in view of: financial implications of the impacts related to the topic, influence on long-term performance, level of reputation risk involved, and growth or gains in competitive advantage.
In total, 16 topics considered essential to the business were identified. Based on these topics, a form was applied that made it possible to classify perceptions regarding the importance of each topic and its level of impact as “very important,” “important,” “of little importance” or “unimportant.” The result of prioritization signaled five topics as very important and 11 important topics.
MATERIAL TOPICS 2017 >>>
| > RANKING > | > TEMA > | > RELEVÂNCIA > |
|---|---|---|
| 1 | Operational Performance | very important |
| 2 | Water | very important |
| 3 | Risk and Crisis Management | very important |
| 4 | Innovation, Diversification, and R&D | very important |
| 5 | Employees and Employment | very important |
| 6 | Corruption, Ethics Management | important |
| 7 | Health and Safety | important |
| 8 | Specific Purpose Entity | important |
| 9 | Compliance Issues | important |
| 10 | Communities | important |
| 11 | Energy Matrix | important |
| 12 | Climate Change | important |
| 13 | Supplier Management | important |
| 14 | Satisfaction (Customer and Employees) | important |
| 15 | Volume of Assets | important |
| 16 | Biodiversity | important |
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1 Ferramenta utilizada para identificação de riscos socioambientais.
2 Em português: “Tópicos de sustentabilidade para setores: o que as partes interessadas querem saber”.
With this result, it was possible to classify the level of importance of the topics for Chesf and its stakeholders, evaluating impacts (positive and negative) for both. Material topics, approved by the Executive Board, are correlated with the organization’s key sustainability and performance indicators, and flagged throughout the report, in the Attachments, and in the Index.
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WHO ARE CHESF’S STAKEHOLDERS?
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Chesf considers stakeholders to be all parties directly and indirectly impacted by its results and actions. The identification of these stakeholder groups follows the Business Planning guidelines.
ENGAGEMENT PRACTICES
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The Company has in place a set of pre-defined practices to engage with its stakeholders throughout the year. The actions may vary from meetings, visits, telephone contacts, emails, information bulletins, contact by the suppliers’ service center, and client satisfaction surveys, depending on the need of each audience. There are also activities involving greater mobilization, such as: public hearings, campaigns carried out with government and society, actions for quality of life with employees and family, and sponsorships of social projects.
These engagement practices help identify the perceptions, suggestions, and concerns of these groups, giving responses and the appropriate treatment for each situation. The dialogue with Chesf’s stakeholders is guided by the Stakeholder Communication and Engagement Policy of the Eletrobras Companies, whose principles are:
- > Agility and precision.
- > Training, creativity, and innovation.
- > Commitment and respect for human beings and the environment.
- > Legal compliance.
- > Business efficiency and effectiveness.
- > Equity and respect for diversity.
- > Ethics.
- > Sustainability.
- > Transparency.
- > Appreciation and motivation of work teams.
GET TO KNOW CHESF’S MAIN STAKEHOLDERS AND HOW THEY RELATE:
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