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Eletrobras

Centrais Eletricas Brasileiras SA (Eletrobras) is a publicly listed electricity company headquartered in Brazil, with 46.6% of shares held by the government of Brazil. It is the largest electricity utility in Latin America, with revenue in 2019 of US$7.03 billion and installed capacity of 51 GW. Eletrobras has a predominantly renewable installed base but should further develop solar and wind rather than relying on fossil fuels for 5% of its generation.

Summary

Eletrobras ranks 17^th with an ACT rating of 5.8C-. The company has a high installed base of renewables in a country with plentiful opportunities for renewable generation from hydro, solar and wind. It also has a very low emissions intensity – that is, the amount of greenhouse gas emissions produced for every unit of electricity. However, it is not sufficiently planning for climate change or reducing its residual reliance on fossil fuels.

To remedy this, Eletrobras should improve its climate governance by drawing up a low-carbon transition plan and performing scenario testing. It should also implement science-based targets to drive reductions in its fossil fuel generation and replace its small amounts of coal, gas and oil with renewables.

Data availability information

Ranking position: #17 /50
Total score: 5.8 /20
Narrative Score: ABCDE
Trend Score: Trend line is up

Trend line is equal

Trend line is down

Performance module name	Performance module score	Rank (0-50)
Targets	0.0 /4	#33
Material Investment	1.1 /7	#41
Intangible Investment	0.3 /2	#11
Management	1.8 /4	#20
Policy Engagement	0.6 /1	#14
Business Model	2.0 /2	#1

Leading Practices

No leading practices were identified this company.

Targets: Eletrobras should set science-based targets; without them the company lacks a driver to remove what remains of its fossil-fuelled generation. Company forecasts show little movement on reducing coal and gas by 2027, and there are no plans to increase wind although nuclear power is set to increase by 70% (relative to 2018). This new nuclear generation will increase overall production by 50%, giving Eletrobras the opportunity to replace its fossil-based generation and support the company’s overall predicted growth in generation.
Material investment: As the company with the second-lowest emissions intensity in the sample, Eletrobras is well placed to achieve net-zero emissions. It is likely to continue this strong performance if it sets science-based targets and replaces its remaining coal and gas assets.

Trend

Eletrobras is awarded a trend score of -. If the company were reassessed in the near future, its score would likely worsen, largely because of the difficulty in achieving its demanding well-below 2-degree scenario pathway. Although only 5% of Eletrobras’ generation is fossil fuels, these are due to increase over the coming few years, putting pressure on its continued low-carbon alignment.

Commitment: Eletrobras has few environmental commitments beyond continuing with its existing business model. An annual target of 1% reduction in emissions intensity is insufficient for the company’s long-term strategic planning for the low-carbon economy.
Transition plan: As the company with the second-lowest emissions intensity in the sample, Eletrobras has historically performed well and should keep up its low-carbon transition. Although the construction of new large hydroelectric plants can increase methane emissions (as large forest areas are flooded), and the company maintains a small number of gas plants, it is 95% renewable. Plans are underway to build 10 GW of nuclear by 2030.
Present activities: Eletrobras has an annual target to reduce emissions intensity by 1%. The company’s well-below 2-degree pathway puts this reduction at 75% by 2025. However, the company has no plans to achieve this figure, and its emissions intensity is in fact projected to increase slightly over time.
Legacy: Emissions intensity decreased from 53 gCO2e/kWh in 2013 to 41 gCO2e/kWh in 2018 as Eletrobras reduced the small amount of coal generation in its portfolio.
Consistency: Eletrobras’ plans are to do more of the same. Its actions are consistent with its view that it has largely transitioned – despite lacking a specific transition plan – and only needs to maintain its existing fuel mix for the foreseeable future. However, this is inconsistent with the sector-wide transition to zero-carbon generation.

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2021
2023

More about the company

Headquarters: Rio de Janeiro, Brazil
Ownership structure: Publicly listed with 51% owned by the government of Brazil
Group revenue: US$7.03 billion (2019)
Installed capacity: 51 GW (2019)
Website: https://eletrobras.com/en/Paginas/Home.aspx

Eletrobras

Leading Practices

Risks and opportunities

Targets

Material investment

Trend

Progress towards the Paris Agreement

Commitment

Transition plan

Present activities

Legacy

Consistency

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More about the company