Eletrobras

Eletrobras has implemented board-level oversight of climate change. However, there is no evidence that the company has a detailed low-carbon transition plan, and it remains unclear how the company plans to fulfil its net-zero commitment by 2030. The company has conducted a climate change scenario analysis, but the results are expressed only in qualitative terms. Eletrobras can improve its low-carbon performance by establishing a time-bound action plan with verifiable and quantifiable key performance indicators and financial commitments towards decarbonisation.

Eletrobas collects climate-related information from 100% of its suppliers. Suppliers must adhere to the company’s Code of Conduct, which encourages the mitigation of greenhouse gas (GHG) emissions. The company also runs an engagement campaign to educate suppliers about climate change and to encourage innovation to reduce climate impacts of products and services. Suppliers are also encouraged to take steps to reduce emissions within their supply chains. Eletrobras can improve its performance in this area by explicitly incorporating GHG emissions reduction criteria into its procurement templates and requesting suppliers to provide regular updates on their progress.

Eletrobras invests in several pilot and research projects for low-carbon technologies. For example, the company is developing the preliminary design of a large horizontal-axis wind turbine with a generator located at the base of the tower. It also invests in research and development (R&D) of hybrid energy generation, the green hydrogen technological cycle, a photovoltaic container with storage as an alternative generation in isolated systems in the Amazon, and other technologies. However, the company does not meet the sectoral-level expectation that at least 80% of its total R&D investments should be dedicated to low-carbon technologies and energies.

Eletrobras allocated about 10% of its total capital expenditure (CapEx) to low-carbon technologies such as wind, solar and nuclear projects. The company’s emissions intensity has remained static increased between 2017 and 2022 other than a peak in 2021 due to an increased share of gas generation. The company can improve by increasing the share of its CapEx invested in low-carbon technologies to meet the sectoral-level expectation of 95%.

Eletrobras aims to become net zero by 2030. The company reports having set this commitment in alignment with the Science Based Targets initiative (SBTi) but has not yet had it validated. The company has set a target to reduce its scope 1 and 2 absolute emissions by 5% by 2025 and its scope 1, 2 and 3 emissions intensity by 22% by 2023, compared to 2019.

Eletrobras has published only some elements of a low-carbon transition plan but does not have an explicit transition plan in place. Eletrobras plans to add 672 megawatts (MW) in installed energy generation capacity from 2022 to 2031; these include fossil fuels-based generation plants as well as wind- and solar-based ones. The company does not have a plan to phase out its coal-based electricity generation plants.

The company invests in expanding its energy generation, transmission and efficiency. In 2022 the company invested in R&D of several low-carbon technologies, such as floating solar farms, which can be readily deployed across the multitude of hydroelectric reservoirs in Brazil.

The company’s emissions intensity has remained static between 2017 and 2022 apart from a peak in 2021 due to an increased share of gas.

Consistency

The lack of a transition plan and any financial commitments towards decarbonisation, along with considerable investments in fossil gas generation capacity, call into question the credibility of the company’s ambition to become net zero by 2030. The company plans to have at least 350 MW of coal-based generation capacity in 2031.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it offers training to workers and internship programs meant to help educate students. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through programs that emphasize the inclusion of women and disabled people. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company expects its business relationships to commit to respecting the health and safety of their workers, discloses some statistics about the diversity of its workforce and is committed to women’s empowerment. However, the company can strengthen its disclosure on these subjects as well as on other decent work issues including living wage and working hours practices.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. Furthermore, the company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, the company can strengthen its disclosure on these subjects as well as on its responsible lobbying and political engagement practices.