Centrais Eletricas Brasileiras S A : SASB Report

Eletrobras

2021 SASB Report

		Eletrobras I 2021 SASB Report	2

Contents

Introduction

Message from the Chief Corporate Management & Sustainability Officer

Risk management

Environmental management

Installed capacity and electricity generated and transmitted

SASB Content Index

SASB reporting status

Credits

		Eletrobras I 2021 SASB Report	3

Introduction

Eletrobras (Centrais Elétricas Brasileiras S.A.) is the leading generation and transmission company in Latin America, and accounts for 29% of installed generation capacity in Brazil. The Group supports 13,433 jobs across the parent company and seven subsidiaries, including employees at the Brazilian side of the Itaipu dam.

We have helped to make Brazil's energy mix one of the cleanest in the world-97% of our installed capacity derives from low-carbon, renewable energy sources: hydro, wind, solar and nuclear.

Eletrobras annually publishes Integrated Reportsbased on the International Integrated Reporting Council (IIRC) framework and its capitals; the Global Reporting Initiative (GRI) Standards: Core option; the Sustainability Accounting Standards Board (SASB) sector disclosures and the recommendations of the Task Force on Climate- Related Financial Disclosures (TCFD).

These frameworks and disclosures were also mapped to the relevant Sustainable Development Goals (SDGs) of the United Nations (UN) 2030 Agenda for Sustainable Development.

This is the second year Eletrobras is reporting TCFD and SASB disclosures separately. This report contains SASB disclosures addressing the sector-specific topics outlined in the SASB Materiality Map, issued in 2021. Eletrobras reports the sector-specific disclosures for Electric Utilities & Power Generators. In developing its standards, the SASB identified sustainability topics from a set of 26 broadly relevant sustainability issues organized under five sustainability dimensions: environment, social capital, human capital, business model and innovation, and leadership and governance.

Eletrobras has helped to make Brazil's energy mix one of the cleanest in the world-97% of our installed capacity derives from renewable energy sources

		Eletrobras I 2021 SASB Report	4

Message from the Chief Corporate Management & Sustainability Officer

In recent years, a wide range of stakeholders-rating agencies, research institutes, among others-have inquired about how Eletrobras Group companies are addressing ESG (Environmental, Social and Governance) issues across their different aspects. In response to these inquiries, we have developed our second-consecutive separate report on Sustainability Accounting Standards Board (SASB) disclosures.

This report is integrated and consistent with other Eletrobras Group reporting; it has drawn guidance from the International Integrated Reporting Framework ( Framework), the Global Compact, and the Agenda 2030 and its Sustainable Developing Goals (SDGs). It has also been prepared in accordance with the framework proposed by the Task Force on Climate- Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI) standards.

Our aim in meeting these standards and recommendations is to enhance transparency in reporting to stakeholders on our initiatives to address pressing issues like climate change; our efforts to safeguard the health and safety of our employees, who work daily to ensure that electricity is reliably delivered to our customers; and our actions to help improve quality of life in the communities surrounding our operations. Through these reports and our Management Report we also provide an account of our progress in implementing good governance practices, and our financial performance.

These different reporting methods form a multifaceted polyhedronthat reflects the wealth of diversity that exists across the Eletrobras Group.. We have chosen this figure because it embodies and interconnects our different approaches to reporting on our disclosures, initiatives, results and goals across the economic, environmental, social and governance dimensions.

In this 2021 report, we highlight the review we completed of our materiality matrix and its importance in keeping us focused and up-to-date on priority topics, and fully aligned with our business objectives. We provide key information to current and future investors who see this approach to reporting as the most useful to understanding the extent of ESG impacts on our financial performance.

It is important to note that, while this three-letter acronym, ESG, has increasingly become mainstream, the underlying concept of sustainability goes much deeper than this. At the Eletrobras Group, it is a journey that we embarked on many years ago and that we must and will continue to pursue consistently and unwaveringly. Along the path there will be a great many challenges: from climate change and biodiversity, through the circular economy, to digital transformation, social and economic issues, and energy efficiency, and we will need to interlink and integrate the myriad of social, economic and environmental aspects affecting Eletrobras Group companies.

We are not, however, dismayed by these challenges. Rather, they accentuate the importance of our sustainability journey as a business and as a company with an important role to play in society.

Luiz Augusto Pereira de Andrade Figueira

		Eletrobras I 2021 SASB Report	5

Risk management

Dimensions: Human Capital, Leadership and Governance

Eletrobras implemented a Group-wide Integrity Program in 2016. The program, called Eletrobras 5 Dimensions, comprises a set of ongoing initiatives to disseminate a culture of integrity and prevent misconduct in Group companies. The program's five dimensions are centered around creating a business management environment focused on compliance; periodic risk assessment; development and implementation of policies and procedures; internal communications and training; continuous program monitoring; and remediation action and penalties. Illustrating the level of maturity we have attained in our Integrity Program, Eletrobras has recently been awarded a Pró-Ética Mark, which recognizes companies that have implemented robust measures to prevent, detect and mitigate corruption and fraud.

Eletrobras' risk management system is integrated Group-wide, and aims to prevent events from materializing which could adversely affect our strategic objectives and our ability to generate and preserve value, and to provide transparent information to

the market and shareholders. The risk management process is governed by our unified Corporate Risk Management Policy, which is reviewed and approved

by the Board of Directors. The most recent edition was issued in June 2021 and is available on our website. The most significant changes in the 2021 edition were adjustments for compliance with the COSO 2017 ERM Framework, the Brazilian Corporate Governance Institute's (IBGC) Code of Best Practice for Corporate Governance, and the Institute of Internal Auditors' (IIA) Three Lines Model 2020.

Risk management is coordinated at the parent-company level in order to provide an integrated view of and standardize the process across Group subsidiaries, and is implemented on the ground by risk management and internal controls functions and risk committees at each Eletrobras Group company. Risk management results are reported to the Executive Board and Board of Directors via the Statutory Audit & Risk Committee (CAE).

At Eletrobras Group companies, risks are identified and mapped in a Corporate Risk Matrix, classified as business, financial, operational and compliance risks.

View the Eletrobras 2021 Annual Reportfor the complete risk matrix.