Highlights:

Environmental

• Conclusion of the process of disposal of the Pampa Sul Thermoelectric Plant, the last coal-fired plant in the portfolio, positioning the Company as the largest 100% renewable electric energy generator in Brazil.
• Investments of R$ 2.9 billion in 2023 in renewable energy and transmission lines, with a forecast of a further R$ 13.8 billion between 2024 and 2026.
• Once more during the year, GHG emissions fell significantly: from 1,108 thousand tCO2e in 2022 to 671 thousand tCO2e in 2023 (-39.4%).
• The freshwater consumption rate declined from 0.19m³/MWh in 2019 to 0.046m³/MWh in 2023, a reduction of approximately 76%.
• Average waste recovery of 80%, 8 p.p. more than the established target for the year.
• Creation of the pluriannual Supplier Decarbonization Program, with a view also to enhancing and improving other ESG aspects along the supply chain.

Social
• R$ 18.7 million in investments in the communities (between own and tax break resources).
• The largest edition of the Women of Our Neighborhood Program since its launch in 2020, with investments of R$ 930 thousand and 93 women entrepreneurs supported.
• More than 100 partnerships established under the Goodwill Partnerships initiative.

Governance
• Active Integrity Program and Ethics Committee, monitored by the Board of Directors.
• Creation in 2023 of the Legal and Ethics Board – underscoring the importance of aspects of integrity in Senior Management..
• Constant evolution in governance, based on three pillars: integrated management, risk management, and ethics and integrity.

ENGIE Brasil Energia’s Sustainability Report 2023 showcases the Company’s corporate strategy and its development based on the ENGIE Group’s purpose of acting to accelerate the energy transition to a carbon-neutral society The entire document can be accessed in engie.com.br/investidores/relatorios-de-sustentabilidade/.

With a strategic initiative for reaching the global targets for reducing greenhouse gas emissions and with the conclusion of the sale of the Pampa Sul plant, ENGIE Brasil Energia has consolidated into the largest 100% renewable electric energy generator in Brazil. This is in addition to the more than R$ 2.9 billion invested in wind generation and transmission lines during 2023 alone, together with the forecast of a further R$ 13.8 billion to be invested in the coming years.

“The year 2023 was a milestone for all of us. We commemorated 25 years of ENGIE Brasil Energia’s existence at the same time as reaching the position of the largest generator of 100% renewables in the country, an objective which we had planned with great rigor and diligence since 2016 in line with our aim and vision of the future. This result has only been made possible thanks to all the individuals and institutions that have supported us during this long journey and who, just as ourselves, believe and invest in the power of Brazil as an important agent for furthering the carbon-neutral economy on a global scale”, says Eduardo Sattamini, the Company’s Chief Executive Officer.

In these 25 years, the Company has increased its generation capacity from 3.7 GW in 1998 to 8.3 GW, maintaining the diversification of energy sources and massive investments in the expansion in renewables and transmission.

In the next few years, ENGIE is also to pursue its pipeline of projects with the simultaneous implementation of three enterprises: the Assú Sol Photovoltaic Plant in Assú (RN) with an installed capacity of 895 MW; the Serra do Assuruá Wind Complex in Gentio do Ouro (BA) with an installed capacity of 846 MW; and the Santo Agostinho Wind Complex in Lajes (RN) and Pedro Avelino (RN), a plant which has an installed capacity of 434 MW and is already operating commercially.

On the climate front, the report highlights the initiatives adopted for decarbonizing the operations in Brazil, particularly through the advance of activities focused on Scope 3, including those for engaging, raising the awareness, management and mitigation of emissions along the supply chain.

ESG Pillars

The issue of biodiversity, water usage, and waste management from the environmental point of view is also extensively covered in the Report, together with an account of the targets, actions and results achieved, especially in the regions where ENGIE conducts its operations.

In the case of the People pillar, actions on behalf of employees, communities surrounding operations and suppliers are analyzed. Initiatives in the pursuit of greater diversity, equity and inclusion in the Company are also covered. In the area of gender diversity, for example, ENGIE is committed to increasing the participation of women in the Group’s management to at least 40% – their participation in the workforce at the end of 2023 was 29.4% in the Company and 27.7% in leadership positions.

Ethics and governance traverses horizontally through all the other pillars. The Report presents the risk matrices, the internal governance structures and the relationships established with external agents and associations to ensure best practices.

About the Report

The Sustainability Report 2023, which is aligned to the guidelines of the Global Reporting Initiative (GRI), includes a materiality study developed as part of its design. In this material, the topics listed in previous years, as well as the identification of any new relevant issues are reviewed.

In parallel with the global tendencies of ESG reporting and management, the Company has added to the Report some of the recommendations of other institutions of reference in the theme, such as the International Integrated Reporting Council (IIRC), the United Nations Global Compact, the World Economic Forum, Sustainability Accounting Standards Board (SASB) and the Financial Stability Board (FSB) – within the scope of the Task Force on Climate-Related Financial Disclosures (TCFD).