Planet

National and international debates on climate change, hydrological risk and the systemic view of business have moved companies in various parts of the planet to rethink the way they relate to society and the environment. In this context, we established internal debates on how we could act differently and even more responsibly in the territory, based on local knowledge, partnerships and thematic focuses.

Through these reflections and guided by the Sustainability Policy, we believe that potential paths for the Amazon involve greater alignment between economy and nature as a key factor for regional transformation. Thus, in 2022, we reorganized our actions and consolidated them focusing on the Xingu river basin, linked to a vision of contributing to society and the planet, contemplating guaranteeing the future for our business, which is so dependent on water resources. We also focus on something the Brazilian population urgently needs: renewable electricity.

Generating 100% renewable energy and carrying out activities with low levels of Greenhouse Gas (GHG) emissions demonstrate the Company's positive role in combating and adapting to climate change, as well as contributing to a cleaner and more renewable energy matrix.

Seeking to reinforce the fight against climate change, the Company carried out and disclosed its first GHG emission inventory, referring to the year 2021, followed the operational control approach and the guidelines of The Greenhouse Gas Protocol - GHG Protocol (WBCSD/WRI, 2011), of ABNT NBR ISO 14064-1 and of the IPCC (2006), being duly verified by an auditor Its publication in the following year guaranteed Norte Energia the Gold Seal of the Brazilian GHG Protocol Program. The inventory is available for consultation on the Norte Energia website. In this report, information regarding the second GHG Inventory was also presented, as well as the calculation of emissions from the reservoirs and spillways of the Belo Monte HPP; reaffirming the renewable character of the project.

In this context, the international renewable energy certificates called International Renewable Energy Certificates (I-REC) stand out, which are titles that prove that the electricity consumed comes from a renewable source, but do not necessarily need to be linked to a specific energy supply contract. By acquiring I-RECs, companies can neutralize Scope 2 emissions (indirect emissions from energy consumption) from their Greenhouse Gas Emissions Inventories, within the scope of the Brazilian GHG Protocol Program. Belo Monte HPP generates energy equivalent to around 37,000 I-RECs/year and sells certificates.

Acting in the conservation and preservation of biodiversity and natural environments in the area of influence of the Belo Monte HPP – respecting the parameters established or agreed with the competent bodies – is part of the strategy and guidelines of our Sustainability Policy. In 2022, Norte Energia participated in forums related to the topic, such as the Technical Chamber on Biodiversity (CTBio) of the Brazilian Business Council for Sustainable Development (CEBDS). Actions like these are in line with our goal of being an active agent in the conservation of biodiversity and ecosystem services. Currently, we monitor the vulnerable and endangered species that appear on international and national lists, such as The International Union for Conservation of Nature, Ramsar Convention and MMA Ordinance No. 148/2022.

Taking care of water, the main input used by the Company, is present in all our activities. To this end, Norte Energia develops continuous monitoring work to conserve the water quality of the Xingu River through the Water Resources Management Plan. Monitoring carried out on a weekly, monthly and quarterly basis has shown that the Xingu River maintains its classification as a Class 2 body of water before, during and after the filling of the reservoirs. Annually, we send Ibama and the National Water Agency (ANA) a report with hydrological, climatological and water quality data.

The hydroelectric project on the Xingu River has undergone changes since its first proposal, prepared 40 years ago. These changes took place in order to meet the claims of indigenous peoples and local communities, as well as the need to preserve biodiversity in Volta Grande do Xingu.

The operation and water management rules that determine the amount of water to pass through the Reduced Flow Stretch (TVR) are specified in the so-called hydrographs A and B, which were established by the Brazilian State within the scope of the concession auction for the Belo Monte HPP, that is, in a period prior to the creation of Norte Energia S.A. The two hydrographs, which are an integral part of the plant's environmental licensing, must alternate annually, with minimum flows forecast for each month of the year, based on technical and ecological studies, to ensure the maintenance of water quality and the preservation of ichthyofauna, alluvial vegetation, chelonians, fishing, navigation and the ways of life of local populations.

At Belo Monte HPP, the management of collection and final disposal of its waste is carried out by a group of specialized companies, with which Norte Energia has a service agreement. These companies operationally control waste, register their activities and carry out constant and effective monitoring ensuring that different wastes are disposed of in an environmentally appropriate way.

Regarding Norte Energia's internal consumption, computerized systems allow a daily, quick and correct analysis of data and variations in this consumption. The goal is always to seek reductions and deal with any non-compliance. Fuel consumption and fleet management are monitored by the Sofit system, as well as costs using the Guiando software. Considering the three-year period 2020-2022, the reduction in fuel consumption between 2020 and 2021 can be explained by the decrease in the number of vehicles in the fleet, as well as compliance with the working from home regime, which preceded the displacements.

Norte Energia's electricity consumption showed a significant variation in 2020 in view of the Covid-19 pandemic, when offices were closed and other complementary services were interrupted.

The return to face-to-face work generated a gradual increase in consumption, with all consumption offset by IREC.