2019 SUSTAINABILITY REPORT - Celeo Redes
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Subestação Nova Ponte - LT Triângulo
SUSTAINABILITY
REPORT
2019
CONTENTS
4
MESSAGE FROM THE
10
CELEO BRASIL -
12
ABOUT
ADMINISTRATION 2019 HIGHLIGHTS THE REPORT
MESSAGE FROM THE
ADMINISTRATION
20 38 50
CELEO BRASIL -
2019 HIGHLIGHTS
CELEO BRAZIL STRATEGIC GOVERNANCE
ABOUT THE REPORT
CELEO BRAZIL
STRATEGIC
56
SOCIAL
PERFORMANCE
GOVERNANCE
SOCIAL
PERFORMANCE
ENVIRONMENTAL
PERFORMANCE
76
ENVIRONMENTAL
86
ECONOMIC AND
98
GRI CONTENT
PERFORMANCE OPERATIONAL INDEX
PERFORMANCE
ECONOMIC AND
OPERATIONAL
PERFORMANCE
CONTENTS
GRI CONTENT
INDEX
110 113 114
ASSURANCE
REPORT
ASSURANCE CORPORATE CREDITS
REPORT INFORMATION
CORPORATE
INFORMATION
CREDITS
MESSAGE
CONTENTS
FROM THE
ADMINISTRATION
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL -
2019 HIGHLIGHTS
/GRI 102-14/
ABOUT THE REPORT
CELEO BRAZIL As Chairman of Celeo’s Board of Directors, I am
pleased to present our 2019 Sustainability Report,
a document in which we transparently report on our
STRATEGIC actions in the environmental, economic, social and From an operational standpoint, I would like to
governance areas. mention the start of commercial operations, in the
Allow me to start by highlighting the recent beginning of 2019, of the transmission infrastructure
operation performed by the shareholders, through Diego de Almagro, in Chile, and the start of oper-
GOVERNANCE
which APG and Elecnor expanded their strategic ations, planned for April 2020, of our solar power
alliance for the development of transmission and plant in São João do Piauí, and transmission line
renewable power generation projects, by incorpo- in Serra de Ibiapaba, both in Brazil. All these proj-
SOCIAL rating the LATAM platform into Celeo’s solar gen- ects will enter into operation well ahead of sched-
PERFORMANCE eration assets in Spain. APG becoming a partner ule, demonstrating the effort and dedication of our
in the parent company Celeo represents a relevant Company to honor our commitments.
milestone in the Company’s history, as well as the The financial operations finalized during the year
ENVIRONMENTAL commitment of both partners to jointly invest up to were also important. In Chile, with the placement of
PERFORMANCE €400 million over the next five years. It is undoubt- a financial obligation of US$ 365 million over a pe-
edly an additional boost to strengthen our opera- riod of 30 years and, in Brazil, with the completion
tion in these markets. of the financial operation of our Serra de Ibiapaba
This year we continue to strengthen our commit- transmission project in the amount of R$ 646 million
ECONOMIC AND
ment to sustainability. One example of this commit- over a period of 20 years. These operations demon-
OPERATIONAL ment is the excellent results obtained in the GRESB, strate Celeo’s financial stability and show long-term
PERFORMANCE a globally recognized ranking for investors. As a support for work well done.
group, we reached the top positions in the energy What better place than this document, where
transmission category and infrastructure, with Chile we share our achievements and challenges for the
GRI CONTENT taking first place and Brazil second. This ranking an- future, to congratulate our employees and contrib-
INDEX alyzes environmental and management factors in the utors, teams that, through their engagement and
performance of its participants. Therefore, it reflects high performance, maintain their continuous com-
our intense work around our sustainability strategy, mitment to excellence in an indispensable industry
which continues to generate positive results. for the world of today and tomorrow.
ASSURANCE
On behalf of the Board, I invite you to learn in
REPORT
detail about the management approach adopted in
the period.
CORPORATE
INFORMATION Best regards,
MIGUEL MORENÉS GILES
CHAIRMAN OF THE BOARD OF DIRECTORS
CREDITS
4 Sustainability Report 2019 Message from the Administration 5
and society. To this end, since our inception we have
adopted ESG (Environmental, Social and Governance),
CONTENTS principles of responsible management that allow us to
act in the development of three balances: economic,
social and environmental. The development and interac-
MESSAGE FROM THE tion of these three fundamental pillars of action form the
ADMINISTRATION basis of our sustainability principles.
Every time we look at the scenarios in which we are
involved, and when making strategic decisions, we as-
CELEO BRASIL - sess the global and domestic scenarios. Brazil continues
to strive to overcome its internal obstacles and adapt
2019 HIGHLIGHTS
to rapid global changes. We are convinced that Brazil
will continue to demonstrate the solid and steady mat-
Celeo Brasil moved to a new building in 2019. Our uration and growth it has achieved in recent decades,
ABOUT THE REPORT headquarters in Rio de Janeiro was transferred to a new and will continue to adopt best practices in social and
space, with new and modern facilities. I wish to begin this environmental responsibility in all spheres and econom-
message by highlighting this fact, as it clearly reflects the ic sectors. This includes the electricity sector, where we
CELEO BRAZIL moment of Celeo’s consolidation and expansion in the play a leading role, and which is globally dedicated to
country. 2019 was the year when we confirmed our po- improving these practices.
sition of relevance and positive impact on the develop- This is a fundamental trend to define and guide our
STRATEGIC ment of the Brazilian electricity sector, showing the colors business, reason for which we are pioneers in incorporat-
of our own culture. ing the ESG principles as the required set of tools for our
What brought us this far were investments made with daily management and medium- and long-term planning.
criteria and long-term vision, aligned with our responsi- To exemplify the adoption of these principles of so-
GOVERNANCE
ble management of the business. We combined the cor- cial and environmental responsibility and commitment
rect and efficient analysis of our activities and mitigation to the development of Brazil, also in 2019 we adopted
of associated risks with the constant search for new op- a new form of business vision: in the feasibility study
SOCIAL portunities that can differentiate us in the sector. Thus, in phase of projects, in addition to the relevant regulato-
PERFORMANCE 2019, we started the development of our largest trans- ry, economic, social and environmental analysis, we are
mission project to date, the transmission line TL Parintins analyzing the impact that the implementation of these
Transmissora de Energia S.A. (PATE), and the construc- projects could have in the region where they will be de-
ENVIRONMENTAL tion of our first generation project, the São João do Pi- veloped. We combine an effective interaction between
PERFORMANCE auí solar power complex, composed of six solar power meeting legal and regulatory requirements with an anal-
plants with a total installed capacity of 224 MW. Trading ysis of the potential benefits, real and future, of the im-
of energy on the free market is planned to start in April plementation of such projects, and the impacts for both
2020, well ahead of the January 2022 deadline for trad- society and the environment. The three balances—eco-
ECONOMIC AND
ing on the regulated market. We also have a portfolio of nomic, social and environmental—working together and
OPERATIONAL 16 power transmission concessions, totaling 4,757 km in in a coordinated manner. We also add to these tools the
PERFORMANCE length and 56 substations. This portfolio requires us to 17 SDGs established by the Global Compact to which,
perform with excellence in terms of O&M, ensuring the besides being signatories, we are committed to the im-
maintenance, operation and administration of the power plementation and practical use of five of them, and al-
GRI CONTENT transmission system, an essential infrastructure for Brazil’s ready use them as tools for the development and good
INDEX social and economic development. performance of our daily activities. Incorporating these
The message our stakeholders take from analyzing SDGs also in the development and definition of our
our performance is, above all, one of consistency and de- long-term strategy will be one of our major objectives
pendability. Our actions to expand Celeo’ market share for the coming year.
ASSURANCE
will continue to be based on positive returns not only for
REPORT
our shareholders, but for all other players involved in our
activities, paying special attention to the environment
CORPORATE
INFORMATION FRANCISCO A. CHICA PADILLA
CHIEF EXECUTIVE OFFICER
CREDITS
6 Sustainability Report 2019 Message from the Administration 7
Relying on our most important asset—a highly ded-
icated and prepared team—to achieve these goals, we
CONTENTS will lead the transformation of the corporate business vi-
sion, so necessary to combat climate change. This is the
main challenge we face in this new decade. With such
MESSAGE FROM THE clear and well-defined premises, we are committed to
ADMINISTRATION ensuring excellence and continuous improvement for the
benefit of our shareholders, stakeholders and especially
society and the environment.
CELEO BRASIL - In closing this report, a social and economic risk ma-
terializes as a consequence of the advance of a new and
2019 HIGHLIGHTS
unknown virus disease, COVID-19, which is expected
to put at risk all global economies and societies, not to
mention what is now considered the most severe social
ABOUT THE REPORT problem of the 21st century. We are facing this threat
with determination, aware of our capacity to adapt and
overcome, and we are prepared to combat its effects The essential parameter that guided the decisions
CELEO BRAZIL and consequences with the main weapon and tool at our to be made was, above all, the safety and health of em-
disposal: our unyielding spirit and capacity of resilience. ployees. Thus, measures were quickly taken to safeguard
this parameter and allow people to protect themselves
STRATEGIC from the disease, so as to enable everyone to maintain
COVID-19
the capacity to perform their work activities as normally
as possible. Once this first challenge was addressed, the
actions were prioritized to guarantee the operations in
GOVERNANCE
During completion and review process of this report, the the event of replacements due to sick leaves related to
entire Celeo team was caught by surprise by the news that this illness, since the power generation and transmission
shocked the world: WHO had just declared the COVID-19 activities provided by Celeo are essential services.
SOCIAL outbreak a global pandemic. This event prompted the The actions developed during the daily meetings that
PERFORMANCE start of risk assessment and definition of strategies to mi- have been in progress since then, include: remote work for
tigate impacts that could affect the company’s activities. the office staff and maintenance bases, availability of in-
Subsequently, strictly following crisis management dividualized transportation, strengthening of the hygiene
ENVIRONMENTAL protocols, a committee was set up to intensify the sys- procedures and cleaning of work stations, communication
PERFORMANCE tematic work to monitor the organization’s activities that and guidance, preparation of additional teams to perform
could be affected; determine the most vulnerable pro- tasks that cannot be interrupted, among others.
cesses; and rapidly develop measures to ensure the safe- Action and contingency plans were then developed
ty of employees and their families as well as the continu- for key processes for the continuity of operations, in
ECONOMIC AND
ity of operations of the assets. This local crisis committee particular power generation and transmission activities.
OPERATIONAL (Brazil) established a daily agenda of meetings with the Subsequently, these plans were requested by regulatory
PERFORMANCE management team of the holding company, in Spain, agencies (ANEEL) and other government entities, such as
which monitored and helped guide the development of municipal authorities, and were readily made available.
the preparation and mitigation work. Concerning the assets under construction, communi-
GRI CONTENT cations with stakeholders (federal, state, local authorities,
INDEX contractors - EPC) were strengthened, in order to present
the measures to contain the pandemic’s effects on res-
idents and workers allocated in several cities in Brazil’s
Northeast region, with maximum transparency and in a
ASSURANCE
proactive and collaborative manner.
REPORT
CORPORATE
INFORMATION
CREDITS
8 Sustainability Report 2019 Message from the Administration 9
CELEO BRASIL - 2019 HIGHLIGHTS
CONTENTS
99.56%
TL Availability Rate
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL - GOVERNANCE ENVIRONMENTAL OPERATIONAL
2019 HIGHLIGHTS
R$ 7.9 0 R$ 7.2
SOLAR POWER COMPLEX IN SÃO JOÃO DO PIAUÍ:
100% million
ABOUT THE REPORT • Creation of nearly 600 DIRECT JOBS
million
during the construction phase
• 190,000 FAMILIES benefiting from
CELEO BRAZIL Environmental
renewable energy generation capacity invested in R&D*
of employees received Sanctions - monetary
communications on compliance in environmental investments and non-monetary
STRATEGIC
and anti-corruption
PEOPLE
0
GOVERNANCE
SOCIAL
37,600
Cases of
4/5
Occupational
SOCIAL Diseases
PERFORMANCE hours of training
PRIVATE SOCIAL
Forest replacement area
INVESTMENT Certified in the
Great Place to
Scale
12 TIMES
ENVIRONMENTAL
PERFORMANCE
Work survey
ECONOMIC AND
Compliance Maturity
Level - Monitoring Function greater than the vegetation removal area**
R$ with a score of
83 POINTS
692,400
OPERATIONAL
0
PERFORMANCE
R$ 576 R$ 1.1
IN SOCIAL
million billion
R$ 1.6
GRI CONTENT
INDEX
FINANCIAL in Net Operating Revenue in Net Debt investments
million
ASSURANCE
45,149
REPORT
R$ 6.5 R$ 149 R$ 247 workplace
CORPORATE
INFORMATION
BILLION million million invested in training
accidents
in investments in Net Income in EBITDA
benefited * Accumulated value of projects completed in 2019 and in progress
** Implementation of the projects
CREDITS
10 Sustainability Report 2019 Celeo Brasil - 2019 Highlights 11
CONTENTS
MESSAGE FROM THE
ADMINISTRATION
ABOUT
CELEO BRASIL -
2019 HIGHLIGHTS
ABOUT THE REPORT
CELEO BRAZIL
THE REPORT
STRATEGIC
GOVERNANCE
REPORTING
SOCIAL
PERFORMANCE
PROCESS
/GRI 102-48, 102-49, 102-50, 102-51,
102-52, 102-54/
ENVIRONMENTAL For the fourth consecutive year, Celeo Bra- of power transmission in Brazil and ad-
PERFORMANCE sil (Celeo) is publishing its Sustainability vanced in the construction of Celeo Bra-
Report, which covers the period from Jan- sil’s first solar power generation project.
uary 1 to December 31, 2019. The docu- Thus, the document addresses strategic
ment was prepared in accordance with the management, operating and financial
ECONOMIC AND
Global Reporting Initiative - GRI Guide- results, management approach and so-
OPERATIONAL lines (Standard GRI 101 - Foundation), ad- cial and environmental performance,
PERFORMANCE hering to the Core option, complemented and covers the 16 Special-Purpose Entity
by the GRI-G4 Electric Utilities Sector Dis- (SPEs) in 13 Brazilian states.
closures (GRI Electric Utilities Sector). The The fourth edition of the Sustain-
GRI CONTENT document is also based on the AA1000 ability Report also aims to demonstrate
INDEX Stakeholder Engagement Standard (SES), alignment with the topics assessed by the
2015, and meets the requirements of the Global Real Estate Sustainability Bench-
Handbook for the Development of the An- mark (GRESB)—a global platform for as-
nual Social and Environmental Responsi- sessing the sustainability performance of
ASSURANCE
bility Report of Companies in the Electric- the infrastructure segment.
REPORT
ity Sector, a requirement of the National The report contains the Sustainable
Electric Energy Agency (ANEEL). Development Goals (SDG) prioritized in
In the period covered by the report, 2018 and the targets assumed by Celeo in
CORPORATE Celeo underwent a process for the con- 2019 to contribute to the global develop-
INFORMATION solidation of its performance in the area ment targets of the UN Global Compact.
CREDITS Miranda II Substation - Encruzo Novo Transmissora de Energia
12 Sustainability Report 2019 13
CONTENTS
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL -
2019 HIGHLIGHTS
ABOUT THE REPORT
São Gotardo Substation - TL Triângulo
CELEO BRAZIL
STRATEGIC MATERIALITY MATRIX
Influence on priority stakeholder assessments and decisions
MATERIALITY 3
GOVERNANCE
/GRI 102-21,102-40, 102-42, 102-43, 102-44, 102-46, 102-47, 103-1/ 2
4
1
SOCIAL The definition of the topics in the re- tion of the Company’s areas of opera- 6
5
PERFORMANCE port reflects the materiality analysis tion in the country.
7
conducted in 2018/2019, in accor- In 2019, a process was carried out 10
dance with GRI guidelines. The process to identify the need for any adjust-
9
ENVIRONMENTAL was developed in three stages: iden- ments to the Materiality Matrix. For this 12
PERFORMANCE tification, prioritization and validation period, the audiences considered as 11
of topics considered relevant because strategic for the Company, the priority 15 14
they reflect the economic, environmen- stakeholders who had already partici- 8
17
tal and social impacts of Celeo’s oper- pated in the construction of the Mate-
ECONOMIC AND 13
ations or because they influence the riality Matrix were consulted in order to 16
OPERATIONAL decisions of its stakeholders in relation report their opinion on the approach to 19
PERFORMANCE to the Company. For more information the relevant topics in the 2018 Sustain- 18
on the materiality process carried out in ability Report and their expectations
2018/2019, please refer to the Celeo for the 2019 Sustainability Report.
GRI CONTENT Brasil 2018 Sustainability Report avail- The results of the process showed
INDEX able at: www.celeoredesbrasil.com.br. that, in the reporting period, there were
Celeo aims to update its Material- no events with potential to significantly
ity Matrix every two years, in line with impact operations, decisions of stake- Significance of economic, environmental and social impacts
the evolution of its business strate- holders, or Celeo’s business strategies,
ASSURANCE
gies, the continuous improvement of and therefore the Materiality Matrix was
REPORT 1. Operational Efficiency and Service Quality 10. Relationship with Local Communities
its risk and opportunity management not changed. Priority was also main-
processes, and improvement in stake- tained and a more in-depth reporting 2. Economic Performance 11. Disaster and Emergency Planning and Response
3. Corporate Governance, Ethics and Compliance 12. Supplier Management
holder relations. However, the Matrix was carried out on the topics classified 4. Operational Health and Safety 13. Climate Change
CORPORATE may be reviewed before the two-year as “very relevant” and “relevant.” We 5. Employee Management and Labor Relations 14. Human Rights
INFORMATION period if there are significant changes present information on topics classified 6. Customer Relations 15. Indirect Economic Impacts
7. Management System (Environmental, Health 16. Effluent and Waste Management
to the business, such as diversifica- as “not very relevant” on performance.
and Safety and Quality) 17. Energy Consumption
8. Protection of Biodiversity 18. Air emissions
9. Innovation, Research and Development 19. Water
CREDITS
14 Sustainability Report 2019 About the report 15
LEVEL OF TOPICS BOUNDARIES SDG LEVEL OF TOPICS BOUNDARIES SDG
RELEVANCE OF IMPACTS RELEVANCE OF IMPACTS
INSIDE THE OUTSIDE OF THE INSIDE THE OUTSIDE OF THE
CONTENTS ORGANIZATION ORGANIZATION ORGANIZATION ORGANIZATION
LITTLE RELEVANCE
2 8 9 11
VERY RELEVANT
MESSAGE FROM THE Operational efficiency Human Rights 5 8 10
ADMINISTRATION
Economic Performance 8 Indirect Economic Impacts 7 8 9 11
CELEO BRASIL -
2019 HIGHLIGHTS Corporate Governance,
Ethics and Compliance
1 16 Effluent and Waste Management 6 13
ABOUT THE REPORT
Operational Health and Safety 8 Energy Consumption 13
CELEO BRAZIL
8
Employee Management
and Labor Relations Air Emissions 13
STRATEGIC
Water (consumption and
GOVERNANCE impact on water resources) 6
RELEVANT
SOCIAL Customer Relations 2 9 11
PERFORMANCE
Management System
(Environmental, Health and
ENVIRONMENTAL
Safety and Quality)
PERFORMANCE
Biodiversity 13 15
ECONOMIC AND
Innovation, Research
OPERATIONAL
2 8
PERFORMANCE & Development
Local and Traditional Communities 1 8 9
GRI CONTENT
INDEX Planning and Response
2 8 13
to Disasters and Emergencies
ASSURANCE
REPORT
Supplier Management 8 12
CORPORATE Climate Change 2 13
INFORMATION
CREDITS
16 Sustainability Report 2019 About the report 17
GROUPS OF PRIORITY STAKEHOLDERS
EXPECTATIONS FOR PRIORITY STAKEHOLDER GROUPS
CONTENTS
STAKEHOLDER Shareholder and Partners
ENGAGEMENT Deliver sustainable profitability, operational excellence,
MESSAGE FROM THE corporate reputation, adoption of best practices and
ADMINISTRATION /GRI 102-40, 102-42, 102-43/ ethical, transparent and equitable relationship.
Throughout 2019, Celeo continued its pro- dard (SES), of 2015, identified and classified
cess of improving stakeholder relations stakeholders into ten engagement levels,
CELEO BRASIL - based on a priority identified in the ESG considering stakeholder groups that are im-
2019 HIGHLIGHTS
Plan 2018, which includes environmental, pacted by the Company’s activities or that Customers
social and governance practices. The pur- impact the Company through their deci-
pose is to balance the Company’s objec- sions and actions. Availability of assets and operational
efficiency with quality service.
tives with the expectations of the different Approved in 2018 by the Sustainability
ABOUT THE REPORT strategic audiences. Committee, the Plan was implemented in
Mapping the needs of these audiences, 2019, when a communication plan for pri-
Regulatory agencies in the electricity sector
their management, engagement and mon- ority groups was defined, describing what,
CELEO BRAZIL itoring follow the Stakeholder Engagement when, who and how to communicate. An
Plan (SEP), prepared in conjunction with the improvement of this plan is expected for Availability, quality, continuity of power supply
Celeo’s parent company in Spain and the 2020 in order to make engagement actions and compliance with current legislation.
STRATEGIC Sustainability area in Brazil. more effective and seeking a level of excel-
The SEP, prepared in accordance with lence in engagement with each of the Com-
the AA1000 Stakeholder Engagement Stan- pany’s priority stakeholder groups.
GOVERNANCE
Financial institutions, investors and the
Celeo Securities and Exchange Commission
Give financial return on financed capital and
SOCIAL comply with current legislation.
PERFORMANCE
ENVIRONMENTAL Suppliers and contractors
PERFORMANCE
Offer an environment that is conducive to the execution of services
with integrity, safety and trust for commercial relations.
ECONOMIC AND
OPERATIONAL
PERFORMANCE Employees
Ethical, respectable, safe and healthy working environment, and career plan.
GRI CONTENT
INDEX
Local and traditional communities
Environmental conservation, social responsibility,
ASSURANCE safety in the communities surrounding transmission
REPORT assets and effective communication channels.
CORPORATE
Associations and NGOs
INFORMATION
Proactively work to ensure sustainable business development
Array of Insulator Disks - Encruzo Novo Transmissora de Energia and compliance with voluntary commitments.
CREDITS
18 Sustainability Report 2019 About the report 19CONTENTS
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL -
2019 HIGHLIGHTS
ABOUT THE REPORT
CELEO BRAZIL
STRATEGIC
GOVERNANCE
SOCIAL
PERFORMANCE
ENVIRONMENTAL PROFILE /GRI 102-1, 102-2, 102-3, 102-5, 102-7/
PERFORMANCE
2019 was a year of consolidation for Celeo. The Company’s headquarters is in Rio
After a period of improving its management de Janeiro and its maintenance bases are
ECONOMIC AND
approach, of acquisitions and of growth, the located in the following cities: Uberlân-
OPERATIONAL Company is preparing for new investments, dia, in the State of Minas Gerais; Campo
PERFORMANCE which will follow the principles of sustain- Grande, in the State of Mato Grosso do
ability and profitability adopted in all its Sul; Vila do Conde, in the State of Pará;
projects. The high standard of quality of its and Vilhena, in the State of Rondônia. In
GRI CONTENT services, support for socioeconomic devel- all, Celeo is present in 13 Brazilian states.
INDEX opment in the regions where it operates and For the year 2020, Celeo will have another
of the country and respect for environmental maintenance base in the city of Teresina,
policies are also commitments made by the in the State of Piauí.
Company in performing its business. The growth in recent years has re-
ASSURANCE
Its portfolio consists of 4,757 km of quired the Company to move its head-
REPORT
transmission lines, 56 substations and 16 quarters. In 2019, the Company moved
Special-Purpose Entities (SPEs), including to a new address, to a larger and more
the companies responsible for project comfortable space and with technology
CORPORATE Parintins Amazonas (PATE) and for the São capable of meeting the demands arising
INFORMATION João do Piauí solar power complex, which from its growth.
were added in 2019.
CREDITS
20 Sustainability Report 2019 Celeo Brasil 21CONTENTS
VALUES
01 CARE FOR LIFE AND 03 HONESTY, RESPECT
MESSAGE FROM THE FOR ENVIRONMENT AND TRANSPARENCY.
ADMINISTRATION CORPORATE PRINCIPLES
/GRI 102-16/ 02 CUSTOMER ORIENTED 04 COMMITMENT,
CELEO BRASIL - AND STAKEHOLDER EFFORT AND
2019 HIGHLIGHTS ENGAGEMENT DETERMINATION.
MISSION
ABOUT THE REPORT Contribute to economical and techno- HEALTH AND SAFETY is a fundamental
logical progress, social well-being and value. We give priority to safety over any
sustainable development through in-
other requirement in our activities, only
vestments in safe, reliable and efficient
CELEO BRAZIL executing jobs under safe conditions. We
energy infrastructures.
care about SOCIAL and ENVIRONMENTAL
context necessary to achieve a fulfilled life.
STRATEGIC
VISION We are committed to our CUSTOMERS’
and STAKEHOLDERS’ satisfaction,
GOVERNANCE Be a leading company in the ener- anticipating needs and exceeding
gy infrastructure market, committed
expectations. We focus on providing an
to excellence, with a solid environ-
mental, social and governance cul- EXCELLENT service on a daily basis.
SOCIAL
PERFORMANCE
ture, involving all stakeholders in
company value creation. We promote HONESTY, RESPECT and
TRANSPARENCY in all company levels
ENVIRONMENTAL
to build lifelong ethical relationships.
PERFORMANCE
We believe in COMMITMENT, EFFORT and
DETERMINATION to achieve our goals.
ECONOMIC AND
OPERATIONAL
PERFORMANCE
GRI CONTENT
INDEX
ASSURANCE
REPORT
CORPORATE
INFORMATION
Itumbiara Substation - TL Triângulo Itumbiara Substation - TL Triângulo
CREDITS
22 Sustainability Report 2019 Celeo Brasil 23MAP OF OPERATION
TRANSMISSION CONCESSIONS
CONTENTS
CPTE VCTE LTT CTE PTE
MESSAGE FROM THE Cachoeira Paulista Vila do Conde LT Triangulo Coqueiros Pedras Transmissora
Transmissora de Transmissora de Transmissora de Energia
ADMINISTRATION 695 TL (km)
Energia Energia de Energia
6 (1) SSs — TL (km) ENTE
181 TL (km) 324 TL (km) Transformation 65 TL (km) (1) SS
PATE VCTE
CELEO BRASIL - 2 SSs 2 SSs (MVA): 1,800 3 (2) SSs Transformation
2019 HIGHLIGHTS Transformation Transformation Start of operations: Transformation (MVA): 1,200
(MVA): – (MVA): – nov/08 (MVA): 675 Start of operations: SITE
IMTE
Start of operations: Start of operations: Wholly owned Start of operations: dec/10 - aug/18
nov/04 may/06 jan/10 Wholly owned
ABOUT THE REPORT
Wholly owned Wholly owned Wholly owned
SJP
CELEO BRAZIL JTE
ENTE LTC SITE PATE JTE
STRATEGIC Encruzo Novo Linha de Transmissão Serra de Ibiapaba Parintins Transmissora Jauru Transmissora
Transmissora Corumbá Transmissora de Energia de Energia
de Energia de Energia
279 TL (km) 240 TL (km) 940 TL (km)
GOVERNANCE 220 TL (km) 2 (1) SSs 366 TL (km) 3 (2) SSs 6 SSs
2 (1) SSs Transformation 7 SSs Transformation Transformation
Transformation (MVA): 200 Transformation (MVA): 300 (MVA): –
(MVA): 200 (MVA): 4,200 CTE
SOCIAL Start of operations: Start of operations: Start of operations:
PERFORMANCE Entrada em operação: sep/13 Start of operations: mar/24 oct/09 - dec/12 LTC
LTT
jul/12 - sep/15 Wholly owned mar/23 Wholly owned jan/13 - feb/13
Wholly owned Wholly owned 67% stake
BTE
ENVIRONMENTAL CONCESSION
PTE
PERFORMANCE GENERATION
IMTE CATE CANTE BTE BTE II CANTE
CPTE
ECONOMIC AND Integração Maranhense Caiuá Transmissora Cantareira Brilhante Transmissora Brilhante II SJP
CATE
Transmissora de Energia Transmissora de Energia Transmissora de
OPERATIONAL
de Energia de Energia Energia São João do Piauí
PERFORMANCE 142 TL (km) 581 TL (km)
365 TL (km) 5 (2) SSs 342 TL (km) 10 (4) SSs — TL (km) Power (MW): 186
2 SSs Transformation 2 SSs Transformation 1 SS Power (MWp) 224
GRI CONTENT Transformation (MVA): 700 Transformation (MVA): 300 Transformation 17 TL (km)
(MVA): – Start of operations: (MVA): – Start of operations: (MVA): 200
INDEX 2 SSs
Start of operations: may - jun/14 Start of operations: nov/10 - jan/11 Start of operations: Start of commercial KEY:
dec/14 51% stake feb/18 aug/12 aug/14 operations: apr/2020
51% stake 51% stake 50% stake 50% stake
ASSURANCE
Wholly owned Substation
REPORT
Line in operation
TOTAL Line under construction
CORPORATE * ( ) number of substations - company-owned SSs
INFORMATION 4,757 TL (km) Maintenance base
56 SSs
16 SPEs Operations center
Transformation (MVA): 9,775
CREDITS
24 Sustainability Report 2019 Celeo Brasil 25Jauru Transmissora de Energia
CONTENTS
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL - SHAREHOLDERS
2019 HIGHLIGHTS
Celeo Concesiones e Inversiones S.L. is a Spanish com- plants, railways, telecommunications, water, control sys- on behalf of (pension) funds and employers in the sectors
pany dedicated to the promotion, construction, operation tems, construction, environment, maintenance of facilities of education, government, construction, cleaning and glass
and exploitation of energy infrastructure projects. Cur- and even aerospace engineering. cleaning, housing associations, energy and utility companies,
ABOUT THE REPORT rently, the company has assets in Spain, Chile and Bra- Its strong international nature has led to a continuous sheltered employment, medical specialists and practices of
zil, maintaining several investment promotion activities in expansion process, which opened the doors for new mar- architects. APG manages € 488 billion (March 2020) in pen-
other markets in Latin America. The Brazilian subsidiary, kets across the world, namely America, Africa, Australia sion assets for its clients in these sectors. APG works for over
CELEO BRAZIL Celeo Brasil, is wholly owned by Celeo Concesiones e and the Middle East. 22,000 employers, providing the pension for one in five fam-
Inversiones S.L.. To develop its business in the country, It is a solid Group, with technical and financial solvency ilies in the Netherlands (over 4.7 million participants).
the Company establishes Special-Purpose Entities (SPEs), to promote, develop and build on the five continents. APG’s motto is “Tomorrow is today.” This conveys the
STRATEGIC through which it builds and operates its projects. message that APG works hard every day to ensure tomor-
The ownership structure of Celeo Concesiones e In- row’s pensions. It also underlines that a good investment
versiones S.L. is divided as follows: ELECNOR, S.A (51%) APG strategy and sound pension management today form the
and the Dutch fund APG Management N.V. (49%), which basis for a good pension in the future. The motto further-
GOVERNANCE
is one of the leading pension fund managers in the world, APG is the largest pension delivery organization in the Neth- more constitutes the guideline for APG’s corporate social
and which operates in Celeo Concesiones e Inversiones erlands; providing services such as executive consultancy, as- responsibility. The management approach in part focuses
S.L. through Pasterze Investments Holding, B.V.. set management, pension administration, pension communi- on creating a livable world for current and future genera-
SOCIAL cation and employers services. APG performs these activities tions (Source: APG Website).
PERFORMANCE
ELECNOR
ENVIRONMENTAL ELECNOR S.A. is the parent company of a group PASTERZE ELECNOR,
formed by nearly 80 companies located in Spain and in INVESTMENTS S.A.
PERFORMANCE APG
PRESENCE IN CHILE over 50 countries. 100%
HOLDING,
B.V.
It is an organization with more than 15,000 professionals.
For our readers to have a full knowledge of the op- In Spain, it directly operates its national affiliates. Abroad,
ECONOMIC AND NETHERLANDS
erations of Celeo Redes SL in South America, we it does so through its local subsidiaries or through export
OPERATIONAL 49% 51%
present Celeo Chile, which in 2019 hired 81 profes- projects carried out directly from the parent company. CELEO
PERFORMANCE sionals to work on its three projects in the power Its corporate structure is divided into two major CONCESIONES
E INVERSIONES
transmission operation. These projects are located in business areas: Infrastructures, which executes en- S.L
the Atacama regions and between the Metropolitan gineering, construction and service projects; and the
GRI CONTENT and Biobío regions. Concessions area, through which ELECNOR invests in
INDEX Currently, Celeo Chile operates a total of 506 km energy infrastructure assets, which allow for the devel-
of transmission lines. In 2019, the environmental li- opment of large projects from inception, generating CELEO REDES
100% S.L.U
censing process for two new projects awarded in 2018 income from their promotion, execution, operation,
was initiated: Itahue-Hualqui, a 220-kV, 387 km trans- maintenance and exploitation.
ASSURANCE LATAM AFFILIATES
mission line and five substations, and the “Nueva Alto With more than 60 years of continuous growth, Elec-
REPORT SPAIN
Melipilla-Água Santa” line, a 110-kV and 220-kV dou- nor has become one of the most outstanding Spanish 100% 99,9%
ble-circuit transmission line, 111 km in length and two business groups and a reference in the sectors of infra-
substations. The operations of these two projects are structure, renewable energy and new technologies. The
CORPORATE scheduled to start in 2023. diversification of its activities has been one of the strate- CELEO CELEO
BRASIL, S.A. CHILE LTDA.
INFORMATION gic pillars throughout its history, allowing the company to
cover different sectors, including electricity, gas, industrial
CREDITS
26 Sustainability Report 2019 Celeo Brasil 27CORPORATE
ORGANIZATION CHART
CONTENTS APG GROUP
ELECNOR
CELEO S.A.
MESSAGE FROM THE
CONCESIONES
ADMINISTRATION
E INVERSIONES
S.L
CELEO BRASIL -
2019 HIGHLIGHTS CELEO
REDES
ABOUT THE REPORT
CELEO
CELEO BRAZIL BRASIL
STRATEGIC
GOVERNANCE
CRTE CRE CRTR BTE BTE II CTE PTE
SOCIAL
PERFORMANCE
CELEO CELEO
ENVIRONMENTAL VCTE LTT PATE JTE JTE IMTE ENTE LTC
SJP SJP
PERFORMANCE
FV I FV II
ECONOMIC AND
OPERATIONAL
CELEO CELEO
PERFORMANCE CATE CPTE
SJP SJP
FV III FV IV
GRI CONTENT
INDEX
CELEO CELEO
SJP SJP
ASSURANCE
FV V FV VI
REPORT
CORPORATE SITE
INFORMATION
Jauru Transmissora de Energia
CREDITS
28 Sustainability Report 2019 Celeo Brasil 29TIMELINE • Auction A-4/2018: Solar • R$ 6.5 billion invested
2019
2018
Power Project São
João do Piauí, 6 solar • Headquarters Relocation
power plants (UFVs)
contracted (224 MW-DC) • Construction phase • Execution of agreement
of the São João Piauí for the construction
• ANEEL Transmission Solar Power Project of three Small
CONTENTS Auction 04/2018: Hydroelectric Power
2000
• Elecnor arrives in Brazil and contracts Secures Lot 16 (PATE) • Consolidation of CPTE and Plants (SHPs) - first
the first transmission project – Assets in the States JTE corporate acquisitions hydroelectric project
MESSAGE FROM THE of Amazonas and Pará
ADMINISTRATION • Auction 002/2000: Elecnor • Improvement in the • First contract for the
S.A participates in the • Corporate Acquisitions position in the Global provision of operation
second ANEEL transmission SPEs: CPTE and JTE Real Estate Sustainability and maintenance
auction and secures Lot B Benchmark (GRESB) (O&M) services for the
CELEO BRASIL -
• Beginning of the transmission assets
2019 HIGHLIGHTS
certification process • Gold Seal in the GHG of an energy utility
by the Integrated Inventory according to
2001 to 2007
• Company control Management System the GHG Protocol
ABOUT THE REPORT switches to Elecnor (IMS) - ISO 9001, ISO
Transmissão de 14001 and OHSAS • Retention of ISO 9001,
Energia S.A (ETESA) 18001 standards ISO 14001 and OHSAS
CELEO BRAZIL 18001 Certification and
• ETESA is awarded • Publication of expansion to 8 other units
12 transmission the first assured
STRATEGIC concessions sustainability report • Corporate restructuring
at CRE
• Publication of the
first GHG Protocol
GOVERNANCE
inventory with
independent assurance
SOCIAL
PERFORMANCE
ENVIRONMENTAL
2008 to 2010 2012 • Beginning of the
2016
PERFORMANCE process of reviewing its
• Auction management practices with a
005/2012: secures view to obtaining certification
• ETESA wins 5 lot B (BTE2) by the Integrated Management
ECONOMIC AND
concessions: PTE, CTE, System (IMS) in accordance
OPERATIONAL
2015
BTE, ENTE and LTC with ISO 9001, ISO 14001 and
PERFORMANCE OHSAS 18001 standards
• Disposal of 7 of
its concessions
2014
• Change of • Creation of the Corporate
GRI CONTENT corporate Integrity Program - Compliance
INDEX name to
• Auction 001/2014: Celeo Redes
2017
secures lot F Brasil S.A. • Auction 002/2017:
(CANTAREIRA) secures Lot 2, located
ASSURANCE
• Incorporation of Celeo in the Sates of Piauí
2011
REPORT
Redes Spain (CR) • APG acquires and Ceará – SITE
a 49% stake of
• Auction 006/2011: Celeo Redes SLU
CORPORATE secures Lot E and I
(Caiuá and IMTE)
INFORMATION
CREDITS Cantareira Transmissora de Energia
30 Sustainability Report 2019 31GENERATION
CONTENTS
HISTORY
Established in Spain in 1958, the Elecnor Group
started operations in Brazil in 2000, when it ac-
MESSAGE FROM THE quired Lot B in the ANEEL Transmission Auction.
ADMINISTRATION The following year, the Company was renamed
PROFILE OF
Elecnor Transmissão de Energia S.A – ETESA and,
in 2015, the current name was adopted: Celeo
CELEO BRASIL - Redes Brasil S.A..
THE BRAZILIAN COMMERCIALIZATION TRANSMISSION
ELECTRICITY
In recent years, the Spanish Company has in-
2019 HIGHLIGHTS
vested in the growth of its business in the coun-
try. The year 2019 served to consolidate the ac-
SECTOR AND THE
REGULATORY
quisitions made in the previous year. In addition
ABOUT THE REPORT to the consolidation of the Integrated Manage-
ment System (IMS), Celeo in Brasil, Chile and
Spain were aligned to unify the Sustainability
ENVIRONMENT
CELEO BRAZIL Policy, strengthening the commitment to busi-
ness continuity and responsibility to the environ- PROFILE OF THE
mental and social areas. ELECTRICITY SECTOR DISTRIBUTION
STRATEGIC Learn about Celeo’s history at: www.celeore-
desbrasil.com.br. Generation companies, transmission companies,
distribution companies and energy traders form
the Brazilian electricity sector. Energy produced
GOVERNANCE
by generation companies reaches consumer cen-
ters through transmission lines, and distribution
companies are responsible for delivering energy
SOCIAL to end consumer. Traders directly connect gen-
PERFORMANCE eration companies and consumers and can buy ENERGY
FREE CONSUMER
and sell energy to the so-called free consumers CAPTIVE
(ACL)
CONSUMER (ACR)
who, today, are companies with high demand. TRANSPORT
ENVIRONMENTAL The growing share of renewable sources and
PERFORMANCE the greater role of consumers in the Brazilian
electricity system challenge the traditional value REGULATORY ENVIRONMENT
creation structures of the players involved and
require the modernization of the electric system. Regulation is the control and inspection by the govern- • Normative Resolution No. 846/2019, which ap-
ECONOMIC AND
The National Interconnected System (SIN), ment of market operation. Currently, the development proves procedures, parameters and criteria for im-
OPERATIONAL a set of assets and equipment that enable the of the regulatory environment stimulates the attraction position of penalties on players in the electricity sec-
PERFORMANCE supply of energy in electrically interconnected of investments to the sector, resulting in the presence of tor and general guidelines for ANEEL oversight.
regions, through system exchange, allows the foreign players in all segments of the Brazilian electricity
energy generated in a given region to reach the sector (generation, transmission, distribution and trading). • Normative Resolution No. 861/2019, which provides
GRI CONTENT rest of the country through transmission lines. In The evolution of regulatory requirements has accompa- on geo-location of transmission assets and establish-
INDEX relation to standalone systems, such as Roraima, nied technological innovation, contributing to greater control es the Information Base of the Electric Power Trans-
the natural tendency is that they will gradually be and supervision of the sector. Demand for new requirements mission Assets.
integrated into the SIN. also contributes to the better performance of the system, re-
The Ministry of Mines and Energy (MME) is the flecting on the quality of service and customer care. • Normative Resolution No. 864/2019, which amends
ASSURANCE
body responsible for setting the policies for the Celeo monitors and actively participates in regulatory the regulation of the operation regime of transmis-
REPORT
sector, which is regulated and supervised by the changes that may impact the Company. In 2019, four main sion and generation assets by establishing reliability
National Electric Energy Agency (ANEEL - Agên- Normative Resolutions became effective: and redundancy requirements for remote assistance
cia Nacional de Energia Elétrica). The National without interrupted local assistance of these assets
CORPORATE System Operator (ONS - Operador Nacional do • Normative Resolution No. 841/2018, which estab- and establishes economic incentives for full assis-
INFORMATION Sistema) coordinates and controls the operation lishes criteria for Transmission Functions under the tance to these assets.
of generation and transmission assets. The re- responsibility of transmission companies to enter into
São Gotardo Substation - TL Triângulo cords and feasibility of energy purchase and sale operation and to be integrated into the National In-
CREDITS operations are the responsibility of the CCEE. terconnected System.
32 Sustainability Report 2019 Celeo Brasil 33CONTENTS
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL -
2019 HIGHLIGHTS
ABOUT THE REPORT
CELEO BRAZIL
STRATEGIC
GOVERNANCE
SOCIAL
PERFORMANCE
São Gotardo Substation - TL Triângulo Jauru Transmissora de Energia
ENVIRONMENTAL
PERFORMANCE These actions enable the growth of the sector through
technological, management and regulatory innovations,
Celeo contributed to the main Public Hear- in which the Company not only participates in events and
ings and Public Consultations, individually or via meetings but also has a proactive stance.
ECONOMIC AND
ABRATE, namely: In addition, the Company’s Chief Executive Officer
OPERATIONAL Public Hearing No. 010/2019 to improve is a member of:
PERFORMANCE the proposal for the periodic review of the Per- • Board of the National System Operator (ONS).
mitted Annual Revenue offered in the conces- • ABRATE - Associação Brasileira das
sion agreements related to projects tendered Empresas de Transmissão de Energia
Itumbiara Substation - TL Triângulo
GRI CONTENT with review date effective as of July 1, 2019; Elétrica (Brazilian Association of Electric
INDEX Public Hearing No. 014/2019 to Analyze Power Transmission Companies).
ENGAGEMENT IN
the Regulatory Impact on the revision of Nor- • ABSOLAR - Associação Brasileira de Energia
mative Resolution No. 709/2016 on the devel- Solar Fotovoltaica (Brazilian Association
ASSURANCE
opment of operational and holding activities by THE BRAZILIAN of Photovoltaic Solar Energy).
REPORT
public electric power transmission utilities;
Public Hearing No. 026/2019 to review the
Public Consultation No. 019/2019 to
obtain subsidies for the consolidation and
ELECTRICITY SECTOR • ABRAPCH - Associação Brasileira de
Pequenas Centrais Hidrelétricas (Brazilian
regulation and criteria for the operation regime improvement of the regulations associated / GRI 102-13/ Association of Small Hydroelectric Plants).
of the electric power transmission and genera- with the classification of transmission assets, • Official Spanish Chamber of Commerce in Brazil.
CORPORATE tion assets related to remote assistance; access conditions and connection to the Celeo actively participates in discussions to • CIGRE – Comitê Nacional Brasileiro de Produção e
INFORMATION Public Consultation No. 006/2019 to as- transmission system. improve the Brazilian energy sector. This co- Transmissão de Energia Elétrica (Brazilian Committee
sess the need for improvement of regulatory The Company points out that the regula- operation takes place through sector associ- for Production and Transmission of Electricity.
commands related to the regulatory useful life tory changes did not materially affect Celeo’s ations and the contribution to the develop- • UN Global Compact – participation in the
CREDITS of transmission equipment; and activities or results in 2019. ment of joint actions. energy and climate working group.
34 Sustainability Report 2019 Celeo Brasil 35THE VALUE CREATION PROCESS
INPUTS INPUTS OUTPUTS
FINANCIAL CAPITAL
CONTENTS
• R$ 397,081 million in distribution
• R$ 6.5 billion in investments value added (DVA)
MESSAGE FROM THE FINANCIAL MANUFACTURED HUMAN NATURAL INTELLECTUAL SOCIAL AND • R$ 149 million - Net Income
CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL RELATIONSHIP
ADMINISTRATION (INFRASTRUCTURE) CAPITAL
MANUFACTURED CAPITAL
CELEO BRASIL - CORPORATE PRINCIPLES (INFRASTRUCTURE)
2019 HIGHLIGHTS
MISSION VISION VALUES
• 4,757 km of Transmission Lines • 9,775 MVA Transformation
ABOUT THE REPORT Sustainability Policy and 56 Substations • 38,528 MW in Capacity
• Solar Power Complex Nominal Transmission
Strategic Objectives (generation capacity - 224 MW)* • TL Availability Rate 99,56%
CELEO BRAZIL
HUMAN CAPITAL
STRATEGIC NEW CONSTRUCTION
BUSINESS MANAGEMENT
• 285 employees • R$ 1.6 million investment in
GOVERNANCE training and qualification
• 11,497 contractors in the
implementation of the projects. • Zero accidents and occupational diseases
SOCIAL GENERATION TRANSMISSION
PERFORMANCE NATURAL CAPITAL
• 199.5 thousand liters of fossil fuels
ENVIRONMENTAL
• 2.1 thousand liters of renewable fuel • Forest replacement in - 35.67 ha
PERFORMANCE
• Removal of native vegetation for the • Greenhouse Gas Emissions
implementation of projects - 3.0 ha (manageable) - 3.94 tCO2e
ECONOMIC AND SERVICES FOR
OPERATIONAL OPERATION & THIRD PARTIES
PERFORMANCE MAINTENANCE CONSTRUCTION INTELLECTUAL CAPITAL
(O&M)
GRI CONTENT
COMPLIANCE RISK MANAGEMENT
• R&D Program • R$ 7.2 million investment
INDEX in R&D Program**
Corporate Integrity Program - PIC
ASSURANCE
CORPORATE GOVERNANCE SOCIAL AND
REPORT RELATIONSHIP CAPITAL
Stakeholders
• Stakeholders Engagement Plan – SEP
• R$ 692,400 investments
CORPORATE OUTPUTS • Programs with local, traditional in social projects
INFORMATION and indigenous communities
• 45,149 people benefited
CREDITS * Power generation as of 2020. ** Accumulated value of projects completed in 2019 and in progress.
36 Sustainability Report 2019 Celeo Brasil 37CONTENTS
MESSAGE FROM THE
ADMINISTRATION
CELEO BRASIL -
2019 HIGHLIGHTS
ABOUT THE REPORT EL ID QUAM QUIA
STRATEGIC
CUM EOS ACIPIT
CELEO BRAZIL VID MOLLIQUOS
COMMOLORUM
STRATEGIC
GOVERNANCE
SOCIAL
PERFORMANCE
ENVIRONMENTAL
PERFORMANCE CORPORATE
STRATEGIC
OBJECTIVES
ECONOMIC AND
For 2020, Celeo maintains its sustainabil- was 70% of the goals fully achieved. Re-
OPERATIONAL ity goals, always considering the environ- garding the other goals, some have been
PERFORMANCE mental, social and governance spheres partially achieved, such as the installa-
(ESG). All goals are defined based on the tion of 75% of the number of containers
guidelines of shareholders and consider- planned for waste storage in the units to
GRI CONTENT ing the country’s regulatory environment, be certified. Others, as a market strategy,
INDEX in addition to the new opportunities were postponed to 2020 or canceled.
identified. The Company continues to General ESG goals were set for 2020,
pursue the diversification of its business, of which we can highlight those that are
prioritizing opportunities that can provide annually linked to a company-wide bonus
ASSURANCE
adequate returns and are in accordance if 100% achieved. The goals and targets
REPORT
with its organizational principles, espe- of workplace accidents, maintenance and
cially with its sustainability policy. continuous improvement of the integrat-
In 2019, Celeo outlined 81 goals ed management system, performance
CORPORATE distributed across all Company depart- in participation in the GRESB platform,
INFORMATION ments, which were monitored by the training in the Corporate Integrity Pro-
sustainability committee through quar- gram, and performance evaluation and
terly meetings. The result for the year development of employees.
CREDITS
Encruzo Novo Transmissora de Energia
38 Sustainability Report 2019 39RISK MANAGEMENT
/GRI 102-11, 102-15, 102-30, 102-31, 205-1/
Risk management at Celeo takes into account two as- • First Line, operational departments that own the
sessment and performance levels. The first level deals risks, responsible for managing them and planning
with managing Global Risks to the Business and the sec- corrective actions in the face of process or control
ond is related to processes. In 2019, the Company revis- deficiencies. Corresponds to the areas of operations,
CONTENTS ited the business risk identification and assessment pro- finance, legal, IT and business development, as well
cesses, made improvements to the methodology applied as, in general, to all employees and intermediate
to its risk management, and incorporated the identifica- controls. Informs the local executive management,
MESSAGE FROM THE tion and assessment of resilience risks associated with control areas and the Sustainability Committee.
ADMINISTRATION climate change and social events. • Second Line, guarantees supervision and monitor-
As of 2020, risk assessment will also consider the as- ing of risks and controls. Control areas that monitor
sessment of process risks, already in line to meet GRESB’s compliance with risk control measures. These areas
CELEO BRASIL - resilience module. As a model, a specific risk assessment collaborate with the First Line of defense in identify-
will be carried out on one of Celeo’s assets under con- ing and assessing risks and in applying control mea-
2019 HIGHLIGHTS
struction, which will later be taken to other units. sures. They correspond to the control areas: Quality,
Risk is managed in tandem with an analysis of oppor- Health and Safety, Environment and Compliance.
tunities. The purpose of the combined management is Quality, Health and Safety and Environment report
ABOUT THE REPORT to enhance, prevent, reduce and control the Company’s to the Compliance Committee.
activities. The process takes into account the ISO 31000 • Third Line, independent internal audit, which su-
(Risk Management - Principles and Guidelines) and ISO pervises the control systems objectively and inde-
CELEO BRAZIL 9001 (Quality Management System) standards. pendently, reporting to the Board. This function is
In 2019, Celeo adapted its risk management model performed by the Management Team, with the sup-
to the Three Lines of Defense (3LD) framework, based port of Celeo’s management teams, coordinated
STRATEGIC on the recommendations of the Committee of Sponsor- through the Corporate Service Agreement.
ing Organization (COSO). It is a widely accepted model
that clearly assigns responsibility for risk management To complete the model, we rely on external play-
COS - Celeo office in the city of Rio de Janeiro and supervision. The model provides three levels of ers, auditors and regulators, which increase the reli-
GOVERNANCE
control or lines of defense. ability of the system.
SOCIAL
PERFORMANCE
CYBERSECURITY BOARD OF DIRECTORS – MANAGEMENT COMMITTEE – AUDIT COMMITTEE
ENVIRONMENTAL
PERFORMANCE In recent years, when the digital transformation of the electricity sector
brought innovation and value creation, a concern gained strength and be-
came one of the greatest challenges: cybersecurity. Management Team Compliance Committee
While the introduction of technology to power generation, transmission
ECONOMIC AND
and distribution systems provide efficiency gains and improve the services
OPERATIONAL provided, it increases the risk of cyber attacks.
PERFORMANCE Celeo actively participates in the Cybersecurity task force of ABRATE Executive Board
(Brazilian Association of Electric Power Transmission Companies) which, to-
External Audit
Regulator
gether with other companies in the energy sector, developed a cybersecuri-
GRI CONTENT ty framework with a focus on operational networks.
The purpose of this framework is to define best cybersecurity practices Sustainability Compliance
INDEX
in electric power transmission assets, for telecommunications systems, SCA- Committee Committee
DA systems and other resources related to automation networks.
Another relevant aspect encountered by the task force in the develop- Quality
ASSURANCE
ment of the framework was the absence of norms and regulatory proce-
REPORT Management
dures for the standardization of requirements related to Cybersecurity of O&M, IT, Finance,
Control
critical assets, leaving them vulnerable and with potential to compromise Legal, Business Health and Safety Compliance
CELEO
development
the availability of the National Interconnected System (SIN).
CORPORATE Celeo works on mitigate these risks by using cybersecurity management Environmental
INFORMATION tools and processes.
1st Line
2nd Line of Defense 3rd Line of Defense
of Defense
CREDITS
40 Sustainability Report 2019 Strategic 41The risks considered by Celeo in the assessment
process are:
Business Risks: the identification, analysis and assess-
ment of those business risks that could affect compliance
of the organization’s cross-cutting objectives and the MVV
(Mission, Vision, Values). They are divided into:
CONTENTS • Financial Risks: Risks associated with fluctuations Process risks: All those risks related to the functioning
in the financial market and the impacts they may and operation of the Company, assets and compliance of
have on the immediate results or on the future obligations with the Interest Groups. Process risks are di- RELEVANT INFORMATION
MESSAGE FROM THE growth of the Company. vided into Quality Risks, Environmental Risks, Health and FOR INVESTORS: A CELEO
ADMINISTRATION • Strategic Risks: Risks associated with changes in Safety Risks, Social Risks, Compliance, and Information COMMITMENT
the energy sector, the environment in which the Technology (IT). Specific risk matrices are prepared for
Company operates, regulatory changes or strate- each of these items. These matrices are regularly assessed Best environmental, social and governance practices
CELEO BRASIL - gic agreements with Interest Groups, as well as so- by the Company’s control areas (second line of defense). (ESG) have been receiving global attention for being
cial aspects (HR, health and safety and community) The Sustainability Committee is responsible for approving associated with sound business, low cost of capital
2019 HIGHLIGHTS
and the environment. the matrices, with the exception of the compliance risk Certification audit - Venda das Pedras Substation - Pedras Transmisso- and better resilience against risks associated with cli-
• Operational Risks: All those risks related to provision matrix, which is approved by the Compliance Committee. ra de Energia mate and sustainability.
of services, assets and compliance of obligations Throughout 2019, Celeo progressed in consolidat-
ABOUT THE REPORT
SUSTAINABILITY
with the Interest Groups. ing the ESG criteria, helping provide investors with
RESILIENCE: THE ABILITY TO more information about the Company where they al-
CELEO BRAZIL The Business Risk Matrix is the management tool
MANAGE RISKS /GRI 201-2/ STRATEGY locate capital. Environmental metrics help investors
understand the Company’s relationship with the nat-
used to identify, assess and control risks. The Sustain- Contemporary transformations involving climate change, Celeo’s strategy reflects a constant search for improving ural world and its dependence on natural resources.
ability Committee is responsible for preparing the ma- the economy and geopolitics demand fast and efficient management and sustainability practices, reflecting the Social metrics help investors understand potential
STRATEGIC trix and the executive board for approving and inform- responses from society. It is important to understand guidelines determined by its shareholders Elecnor and concerns about human rights, labor and community
ing the Management Team. that there is an intersection between these contexts and APG Group. Among the conducts implemented through- relations, as well as the relationship with its audience.
the actions developed by public and private institutions out 2019 are the expansion of the management system Given the enhancement in good governance, the
must consider different factors such as, for example, the and the implementation of the Interliga project (See BOX Company has shown greater maturity in its Corporate
GOVERNANCE
impacts on health, employment and migration. The im- Interliga Project on page 49). Integrity Program, which results in the improvement
portance of corporations in this global scenario requires In search of greater efficiency and global sustainabil- of its internal controls, generating greater confidence
them to act firmly in the search for efficient solutions and ity, Celeo started to review its management practices in and credibility with its stakeholders.
SOCIAL to raise their level of resilience. 2016 and since then it has been working to implement Finally, the sustainability reports produced
PERFORMANCE In the case of the electricity sector, the challenges the certification processes of the Integrated Manage- throughout the year, as well as recognition for the
and responsibilities reflect the interdependence be- ment System (IMS), according to ISO 9001, ISO 14001 excellent score obtained in GRESB Infrastructure, en-
tween the players that form the systems and the de- and OHSAS 18001. The certification started in 2018 and sure that our investors have access to consistent and
ENVIRONMENTAL pendence of the global economic development on the the Company continues with the certification processes reliable ESG data.
PERFORMANCE different energy sources. Celeo recognizes its respon- in the remaining areas.
sibility as a key player in the transmission sector in Bra- A comprehensive adoption of these processes shows Marcelo Vinicius
zil and is adopting a more resilient risk management the Company’s commitment to seeking the satisfaction of Business Development Director
framework in relation to new threats that could compro- its various strategic audiences, ensuring greater business Chairman of the Sustainability Committee
ECONOMIC AND
mise the availability of services. efficiency and compliance with socioeconomic and envi-
OPERATIONAL In 2019, the parent company in Spain created a ronmental commitments. This strategy creates value not
PERFORMANCE corporate guide for its subsidiaries in Brazil and Chile, only for shareholders, but also for society.
which contains global guidelines for resilience and in- Also in search for greater efficiency, Celeo began to
structs companies on how to assess risks arising from implement a specific tool to manage various performance
GRI CONTENT topics defined as priority, such as, for example, ris- indicators. Throughout the Company’s chain, more than
INDEX ing temperatures, impact of rising sea levels and heat 300 KPIs (Key Performance Indicator) will begin to be
waves, among other factors. monitored and will help measure the Company’s results,
In 2020, Celeo will assess the risks of its assets, oper- facilitating management and decision-making.
ational and under construction. The goal is for the Com- Seeking continuous improvement, in 2019 Celeo pro-
ASSURANCE
pany to anticipate changes and assess the impact of up- moted specific forums for the debate on sustainability,
REPORT
coming trends and threats to our business. such as the technical sustainability week that took place
in October in Madrid, where the sustainability teams from
Brazil and Chile and the technical team in Spain were im-
CORPORATE mersed in the discussion on the integration of their man-
INFORMATION agement systems and on the development of their ESG
tools that will be widely used in practice throughout 2020.
Barra dos Coqueiros Substation -
Coqueiros Transmissora de Energia
CREDITS
42 Sustainability Report 2019 Strategic 43You can also read
