Índice 2 - celeo redes...
TRANSCRIPT
Índice 2
Celeo Redes Brasil em Números 3
Mensagem da Alta Administração 6
Sobre o Relatório 8
Perfil da Companhia 12
Negócio e História 16
Governança Corporativa 17
Responsabilidade Corporativa 24
Desempenho 38Econômico-financeiro 38Operacional 43Social 52MeioAmbiente 64
Índice Remissivo GRI 69
Balanço Social – IBASE 80
Informações Corporativas 81
2 3Celeo Redes Brasil Celeo Redes Brasil Sustainability Report • 2017Sustainability Report • 2017
ContentsCeleo Redes Brasil in Numbers
Message from the Management
About the Report
Company Profile
The Business and its History
Corporate Governance
Corporate Responsibility
Economic-financial
Social
Operational
GRI Content Index
The Environment
Social Balance Sheet – IBASE
Corporate Information
External Assurance Letter
4
6
10
16
24
38
28
58
80
66
108
98
124
130
128
Celeo Redes Brasil in NumbersCELEO contributes ethically and responsibly to the operational efficiency of the Brazilian electricity transmission system, as demonstrated by the results achieved for its indicators.
Confirmed Casesof Corruption
0
Incidents ofDiscrimination
0
Level ofCompliance MaturityFunction Monitoring
scale 3/5
Nº Actions for theCIP Audit (CorporateIntegrity Program)
20 recommendations:- 4 mandatory- 16 at priority levels
Nº Reports received viathe Transparency Channel32
Nº Employees takingpart in ComplianceTraining
204
Nº Concessions12
Transmission lines3,953 km
Substations42, of which12 are its own
4,875 MVA in transformer capacity
Presence10 States
Facilities(commercial andoperational)
1 office(with 1 operating center)
1 Maintenance Base (with Backup operating center)
2 Regionais
TL Availability99.88%
Incidents withEnvironmental Impact
0
Environmental Fines
1 (BRL 35,800)
Renewal of Licenses10
Cumulative ForestReplacement161 hectares
EnvironmentalInvestments
BRL 3.9 million
Electricity Consumption
1,175 MWh/year
Employees230
Hours of Training
22,073h
Turnover Rate23.7
Fatal Accidents0
Occupational AccidentFrequency RateOwn employees: 3.60subcontracted workers: 7
Occupational AccidentSeverity Rate Own employees: 0.04Subcontractedworkers: 0.16
Amount of Investments (ANEEL Investment)
BRL 3,652 billion
TL Failure Rate4.37
PV/RAP0.58%
Water Consumption3,105.49 m³
CO2 Emissions
4,081.93
Waste GenerationPerigosos: 2.009 kg2.827 litros1.132 unidades
Hazardous:2,021 kg2,850 liters1,400 units
Non-hazardous:5,228 kg
R & D Investments 3 projects(BRL 3.7 million)
Nº OccupationalIllnesses
0
SSO IntegrationThird Parties47
Nº Active Suppliers1,927
Amount of purchasing(O & M Supplies)
BRL 10.8 million
Nº of "Critical"Suppliers Qualified38
Nº of Rural Properties (Stakeholder Engagement)
1,085 registrations
Social Investment4 Projects(BRL 1.5 million)
Nº Social Complaints(Affected Communities)
3
Total Assets(consolidated shareholding)BRL 2.326 billion
Net worth(consolidated shareholding)BRL 1.517 billion
Net debt(consolidated shareholding)BRL 328 million
Net operating revenue(consolidated shareholding) BRL 195 million
EBITDA(consolidated shareholding)BRL 123 million
Net profit(consolidated shareholding)BRL 86 million
Governance Operational Environmental Social Economic
Celeo Redes Brasil 5Sustainability Report • 2017Celeo Redes Brasil4 Sustainability Report • 2017
Brazil)and4,875MVAoftransformer
capacity,providinggreatersecurity
andcoveragefortheenergy
transportationsystems.Fromthis
solidbasewehavesettargetsfor
growth,especiallyinlong-term
assetssuchastransmissionlines.As
aGroupweareoptimisticaboutthe
futureofourpresenceinthemarket.
In2018,wesignedtheLetterof
CommitmenttojointheUnited
NationsGlobalCompact.Asaresult,
weexpecttoactivelyparticipate
asaSignatoryatthenationallevel
througheachofoursubsidiaries
andarecommittedtocontinuing
toimplementcorporatesocial
responsibilitybasedonthePrinciples
oftheGlobalCompact.
Inthefollowingpagesyouwillfind
detailsaboutthemajoractivitiesthat
tookplaceintheyear2017.Iinvite
youtoreadthisdocument,whichisa
testimonytothecommitmentmade
byallofCeleoRedes’employeesto
contributetotheenergysectorwith
quality,efficiencyandsafety.
Regards,
D.JoaquínGómezdeOlea
ChairmanoftheBoardofDirectors
OnbehalfoftheBoardofCeleo
RedesS.L.wepresentoursecond
SustainabilityReport,inwhichwe
reportontheactivitiescarriedout
in2017,sharingourbeliefinour
sustainablecontributiontothe
energysectorandtothecountry.
AtCeleoRedesweknowthatforthe
electricitytransmissionbusinessto
beviableitrequiresplanningwith
along-termvision.Dialoguewith
stakeholdersisfundamentalforthe
companytoadaptandrespond
immediatelytotheenergyneeds
ofthecountrieswhereweoperate.
Theseconsiderationsareespecially
importantgiventheroleofthe
energysectorinthesocialand
economicprogressofthenation.
Thisiswhyweactivelyparticipate-
togetherwithothermembersofthe
industry-inregulatorydscussions
andinthefuturedevelopmentof
thismarket,contributingthroughthe
soundmanagementofourassets
andournationalandinternational
experience.
Weareconvincedthatourgrowth
isalsothegrowthofthecountries
whereweoperate,sincesafeand
continuouselectricaloperations
facilitatethedevelopmentof
investmentprojects,resultingina
betterqualityoflifeforall.Thisiswhy
wemanageourassetsandliabilities
withaviewtotheidentification,
preventionandmitigationof
environmental,social,economic,
reputationalandhealthandsafety
risksinouroperations.
Today,CeleoRedesfacilitatesthe
developmentofnewinvestment
projectsinLatinAmericathrough
theoperationof4,407kmof
transmissionlines(3,953kmin
D. Joaquín Gómez de Olea
Chairmanofthe
BoardofDirectors
Message from the ManagementGRI 102-14
Message from the CEO of Celeo Redes
Celeo Redes Brasil6 Celeo Redes Brasil 7Sustainability Report • 2017Sustainability Report • 2017
Itiswithgreatsatisfactionthat
wepublishCeleoRedesBrasil’s
secondsustainabilityreport.This
documentistheresultofalengthy
processinvolvingthededication
andcommitmentoftheCELEO
team.Thisprocesshasbeen
strengthenedinrecentyearswith
theformulationofstrategiesforthe
businessandtheadoptionofgood
practicesindaytodayoperations.
Wecanthinkoftheyears2016and
2017asrepresentingmilestones
inourhistoryfortheadvanceswe
havemadeinstrengtheningour
organizationalstructureoverthis
period.Whilemanycompanies
wentthroughadifficultperiodas
aresultoftheeconomiccrisis,we
tooktheopportunitytoconsolidate
processesandlayafoundationfor
sustainablegrowth,reinforcingthe
trustofourstakeholders.
Theresultscanbeseeninaseries
ofactionsandprojectsdeveloped
intheseyears.TheCorporate
IntegrityProgramwasimplemented
in2016andbroughttransparency
toourinternalandexternal
activitiesandrelationships,with
100%adherencebyemployees.
Theauditconductedin2017to
assesstheincorporationofthe
ProgramintotheCompany‘s
managementgavearatingoflevel
3onascaleof1-5.
WealsoimplementedanIntegrated
ManagementSystem(IMS)toraise
thequalityandreliabilityofour
services.In2017,webeganthe
processofimplementationforthe
ISO9001,ISO14001andOHSAS
18001standards,withthetargetof
achievingcertificationfortheIMS
bytheendof2018.
Asforoperatingperformance,we
achievedexcellentratingswith
oneofthebestresultsforthe
availabilityrateinrecentyears.
Externalrecognitioncameinthe
formofachievingfirstplacefortwo
consecutiveyearsintheBrazilian
Solidity and continuity mark our path towards excellence
Francisco Chica
ExecutiveDirectorof
CeleoRedesBrasil
ElectricityRegulatoryAgency’s
(ANEEL)rankingsforoperational
efficiencyamongtransmission
companies.Theeconomic-financial
performancewassatisfactory,
despitebeing16%lowerthan
lastyearduetotheunfavorable
macroeconomicenvironmentthat
thecountryhasbeenexperiencing
since2015,withBRL195millionof
netrevenuegenerated.
Finally,wecanhighlighttheearly
completionofthe500kVEstreito
-FernãoDiasTransmissionLine,
whichrunsfor342kmbetween
thestatesofMinasGeraisand
SãoPaulo.Thisisanimportant
achievementfortheBrazilian
ElectricSystemasitispartof
theTransmissionSystemthatwill
enabletheoutflowofenergyfrom
theBeloMonteHydroelectric
Plant(11,233MW).Theproject
wasscheduledforcompletionin
May2018andwascompletedin
December2017,withoperations
beginninginFebruary2018.
Toconclude,itisimportantto
emphasizethatwehavethe
premisethatmanagement-as
wellasmanaginginvestments-is
ourobligation.Whatsetsusapart
isthatweseeksolidgrowthfrom
abasethatiswellstructuredto
facethechallengesofglobaland
localchangeandtocontribute
tosocioeconomicdevelopment
withrespectforpeopleand
theenvironment.Allthiswhile
demonstratingtoourshareholders
thatCELEOhastheabilityto
maintainthebalancebetween
short-termprofitsandlong-term
cost-effectiveness.Inthisway,we
canbesurethatweareworking
everydaytostrengthentheassets
wehaveinourhands.
FranciscoChica
ExecutiveDirectorofCeleoRedesBrasil
Celeo Redes Brasil8 Celeo Redes Brasil 9Sustainability Report • 2017Sustainability Report • 2017
About the Report
This publication reflects the effort and commitment that CELEO puts into the improvement of its management and its sustainability strategies. The challenge for the coming years is to continue to advance in our use of this instrument for communication with stakeholders.
Celeo Redes Brasil10 Sustainability Report • 2017 Celeo Redes Brasil 11Sustainability Report • 2017
ThisisCeleoRedesBrasil’ssecond
SustainabilityReport.Thisprocess
beganlastyearwiththepreparation
ofaninternalreportthatfollowedthe
guidelinesoftheGlobalReporting
Initiative’s(GRI)G4version,withthe
objectiveofportrayingthedegree
ofcompliancewiththesustainability
guidelinesandpossibilitiesfor
improvementsinfutureprocesses.
Theresultofthismaturityprocess
isthissecondreport,whichisnow
auditedandpubliclyavailable,inline
withourcommitmenttocontinuous
improvement.
Thispublicationisalsoastrategic
commitmentonthepartofthe
Company,consideringtheimportance
oftransparencyandopendialogue
withallofitsstakeholders.Thereport
providesinformationcoveringtheperiod
betweenJanuary1andDecember31,
2017.Thereportincludesinformation
onmanagementandperformance
overthelasttwoyears,withstrategic
objectives,operationalresultsandsocial,
environmentalandeconomicaspectsof
theholdingcompanyandits12energy
transmissionconcessionslocatedin10
statesinBrazil.
Themethodologyadoptedforthe
preparationofthereportwastheGRI
Standards,„core“option,andincludes
thesetofdisclosurescontainedinthe
electricutilitiessectorsupplementthat
applytothetransmissionactivity.This
documentalsoaimstoalignitselfwith
thequestionsassessedbytheGlobal
RealEstateSustainabilityBenchmark
(GRESB)-aglobalplatformforassessing
theinfrastructuresectorforsustainability
performance.
Duringthecontentdefinitionprocess,
91indicatorswereselected:52general
disclosures,28performancedisclosures
(3economic,11environmentaland
14social)and11disclosuresfromthe
sectorsupplement.TheContentIndex
islocatedattheendofthereport
andprovidesdetailsoftheindicators
reported,includingthepagesofthe
reportwheretheycanbefound,withan
indicationofexternalassurancebythe
independentauditorKPMG.
TofindoutmoreabouttheGRI
Standardsforsustainabilityreporting,go
towww.globalreporting.org.
Celeo Redes Brasil’s Concessions
The Reporting Process Process for defining the contentof the Sustainability Report
• BrilhanteTransmissoradeEnergiaS.A.(BTE)
• BrilhanteIITransmissoradeEnergiaS.A.(BTEII)
• CaiuáTransmissoradeEnergiaS.A.(CAIUÁ)
• CantareiraTransmissoradeEnergiaS.A.(CANTAREIRA)
• CoqueirosTransmissoradeEnergiaS.A.(CTE)
• EncruzoNovoTransmissoradeEnergiaS.A.(ENTE)
• IntegraçãoMaranhenseTransmissoradeEnergiaS.A.(IMTE)
• JauruTransmissoradeEnergiaS.A.(JTE)
• LinhadeTransmissãodeCorumbáS.A.(LTC)
• LinhadeTransmissãoTriânguloS.A.(LTT)
• PedrasTransmissoradeEnergiaS.A.(PTE)
• ViladoCondeTransmissoradeEnergiaS.A.(VCTE)
Theprocessofdefiningthe
contentofCeleoRedesBrasil’s
SustainabilityReportbeganin2016
withtheformationofagroupcalled
„SustainabilityFocalPoints“that
includes24leadersoftheCompany.
Thegroupwascreatedinorderto
identifyandevaluate,inprinciple,
theaspectsandimpactsthatare
relevanttotheenergytransmission
businessandtheirrelevancein
relationtotheCompanyandto
thestakeholders.Studieswere
conductedofbenchmarksonthe
national,internationalandsectoral
level,aswellasthosewiththe
specificcharecteristicsofpublic
energytransmissionutilities,in
additiontoconsideringthestrategic
guidelinesoftheshareholdersfor
CeleoRedesBrasil.
Asaresultofthisprocessalist
oftopicswasdrawnupand
prioritized,initiallybythepriority
stakeholders,whichinclude:
Shareholders(ElecnorandAPG),
RegulatoryAgents(ANEELand
ONS),FundingAgent(BNDES)and
Partner(COPEL).Subsequently,the
topicswereprioritizedbytheSenior
Managementtogetherwiththe
SustainabilityManagementarea.
ThetopicsdefinedbySenior
Managementwereprioritizedbased
on:
• Overallriskstothebusiness
andtoprocesses,accordingto
CELEO’sRiskMap;
• Reputationalrisksintheelectric
sectorhighlightedbythe
RepRisktool;
• Relevanttopicshighlightedin
theSustainabilityReportsof
companiesintheelectricsector
andspecificallybyoneofthe
Company‘spartners;
• SASB(whichdefines
sustainabilityreporting
standardsforpublicly-traded
companiesontheAmerican
stockexchange);and
• Requirementsofthe„GRESB
InfrastructureAssessment“
questionnaire.
GRI 102-21, 102,43, 102,44, 102-46, 102-47
GRI 102-50, 102-51, 102-52, 102-54
Celeo Redes Brasil12 Sustainability Report • 2017 Celeo Redes Brasil 13Sustainability Report • 2017
Definition of stakeholders
Toidentifyandprioritizethematerial
topics,theintrinsiccharacteristics
ofapublicelectricitytransmission
utilitywereconsidered.TheSenior
ManagementandSustainability
Managementareadecidedthat
theprocessofengagementand
surveyingthemostrelevantopinions
wouldinitiallyincludethefollowing
prioritygroups:
• Shareholders(ElecnorandAPG)
• BrazilianElectricityRegulatory
Agency(ANEEL)
• NationalElectricSystem
Operator(ONS)
• BrazilianDevelopmentBank
(BNDES)
• CompanhiaParanaensede
Energia(COPEL)
Thisdecisionwasmadeconsidering
thattheenergytransmission
concessionandservice-provision
agreementsaresignedthroughthe
regulators(ANEELandONS)and
arestrategicfortheCompany’s
corebusiness.Themainfinancing
agent(BNDES)alsocurrentlyhas
afundamentalroleintheviability
oftheprojectsbyproviding
financialresourcesintheformof
loans.Thepartners-represented
byCOPEL-andtheshareholders
(ElecnorandAPG)arealsoequally
relevantindefiningthestrategic
guidelines,levelsofGovernance
andperformancewithregards
totheEnvironmental,Socialand
Governance(ESG)aspects.
GRI 102-42
Engagement with communities
Eco-efficiency
Solid Waste Management
Access to financial capital
Relevance
Highly relevant
Operational Health and Safety
Topics
Corruption, ethics management and Compliance
Operational Efficiency and Availability
Biodiversity
Economic-financial results
Management System (quality, environmental, health and safety)
Relevant
People management
Risks and Opportunities management
Supply chain management
Strategic expansion of transmission (new projects, reinforcement,improvements)
Corporate Governance
Research, development and innovation
Less relevant
Limits of the Impacts
Within the Organization Outside of the Organization
Followingtheprioritizationofthe
relevanttopics-whichattempted
toreconciletheevaluationsof
stakeholdersandoftheCompany-
theSeniorManagementconducted
amaterialityapprovalprocessin
ordertoensurethatnoneofthe
relevantimpactsfortheCompany
hadbeenmissed.Onthisoccasion,
thedirectorsevaluatedanddefined
theboundariesoftheimpactsofthe
materialtopics.
Thematerialityanalysisresultedin
16materialtopicsconsideredas
relevantbyCeleoRedesBrazil,as
brokendownbylevelofrelevance
below:
Celeo Redes Brasil14 Sustainability Report • 2017 Celeo Redes Brasil 15Sustainability Report • 2017
Celeo Redes Brasil16 Sustainability Report • 2017 Celeo Redes Brasil 17Sustainability Report • 2017
Company Profile
CELEO’s presence in Brazil demonstrates the importance of attracting foreign investment for the growth of the energy sector and for the socioeconomic development of the country.
Principal Shareholders Elecnorisoneoftheleadingglobal
companiesinthedevelopment,
constructionandoperationofprojects
initstwomajorareasofbusinesses
(InfrastructureandUtilities),which
complementandenricheachother.
Withalmost60yearsofcontinuous
growthandpresentinmorethan50
countries,Elecnorhasbecomeone
ofSpain‘smostprominentbusiness
groupsandabenchmarkinthe
infrastructure,renewableenergyand
newtechnologysectors.
Thediversificationofitsactivitieshas
beenoneofthecompany’sstrategic
pillarsthroughoutitshistory,allowingit
tooperateindifferentsectorsincluding
electricity,gas,industrialfacilities,
railways,telecommunications,water,
controlsystems,construction,the
environment,maintenanceoffacilities
andevenaerospaceengineering.
Itsstronginternationalvocationled
toacontinuousprocessofexpansion,
whichopenedthedoortonewmarkets
throughouttheworld,especiallyin
CentralAmerica,SouthAmerica,Africa
andtheMiddleEast.
UndoubtedlythisisaGroupwhose
technicalandfinancialsolvency
permitsittopromote,developand
buildalltypesofinfrastructureonfive
continents.
APGisthelargestpensiondistribution
organizationintheNetherlands.Ithas
approximately3,000employeeswho
provideexecutiveconsulting,asset
management,pensionadministration
andreporting,aswellasemployee
services.APGperformstheseservices
onbehalfofpensionfundsand
employersinthesectorsofeducation,
government,construction,window
cleaningandgeneralcleaning,housing
associations,energyandutilities
companies,protectedemployment
organizationsandmedicalspecialists.
APGmanages€475billion(January
2018)inpensionassetsforfunds
inthesesectors.APGworksfor
approximately40,000employers,
providingpensionsforoneinfive
familiesintheNetherlands(about
4.5millionparticipants).Itsoffices
arelocatedinHeerlen,Amsterdam,
Brussels,NewYorkandHongKong.
ELECNOR, S.A.
APG INFRASTRUCTUREPOOL 2012
CELEO CONCESIONES EINVERSIONES, S.L.U.
APG
49%
100% 100%
51%
CELEO REDES, S.L.100%
CELEO REDES BRASIL, S.A.100%
JAURU TRANSMISSORADE ENERGIA S.A.
BRILHANTE TRANSMISSORADE ENERGIA S.A.
BRILHANTE II TRANSMISSORADE ENERGIA S.A.
CAIUÁ TRANSMISSORADE ENERGIA S.A.
INTEGRAÇÃO MARANHENSETRANSMISSORA DE ENERGIA S.A.
CANTAREIRA TRANSMISSORADE ENERGIA S.A.
VILA DO CONDE TRANSMISSORADE ENERGIA, S.A.
LINHA DE TRANSMISSÃOTRIANGULO, S.A.
COQUEIROS TRANSMISSORADE ENERGIA S.A.
PEDRAS TRANSMISSORADE ENERGIA S.A.
ENCRUZO NOVOTRANSMISSORA DE ENERGIA S.A.
LINHA DE TRANSMISSÃOCORUMBÁ S.A.
33%100%
50%100%
50%100%
51%100%
51%100%
51%100%
DEZ/2017
Celeo Redes Brasil18 Sustainability Report • 2017 Celeo Redes Brasil 19Sustainability Report • 2017
CeleoRedesBrasilS.A.(CELEO)
isaholdingcompanythatcontrols
12SpecialPurposeEntities(SPEs)
operatingintheBrazilianenergy
sectoraselectricitytransmission
utilities(concessions),includingin
theconstruction,operationand
maintenanceofthetransmission
facilitiesoftheNationalInterconnected
System(SIN).Itisaprivately-held
corporationcomposedoftwo
shareholders:theSpanishgroup
Elecnor(51%)andtheDutchpension
fundAPGGroup(49%).
CeleoRedesBrasilhasits
headquartersinRiodeJaneiroand
threeotherbases–inMinasGerais
(MaintenanceBase:Uberlândia),
MatoGrossodoSul(Maintenance
Base:CampoGrande)andPará
(MaintenanceBase:ViladoConde)
–withoperationsin10statesinthe
country.CELEO’sbusinessportfolio
involvestheparticipationofpartnersin
someofitsventuresintheformofthe
companiesCobra,IsoluxandCopel.
Currently,theCompanyhas230
employeesandin2017generateda
totalofBRL195millioninnetrevenue.
Celeo Redes BrasilGRI 102-1; 102-2; 102-4; 102-5; 102-7
Values
“Toimplementinfrastructure
investmentprojectsandprovide
aconstantandefficientservice
intheelectricitytransmission
business,contributingtoeconomic
andtechnologicalprogressandto
sustainabledevelopment.“
„Tobeacompanythatsetsthe
benchmarkinthetransmission
market,recognizedforthe
performanceofitsservices,creating
valueforitsstakeholdersand
contributingtothedevelopmentof
societyandtheprotectionofthe
environment.“
01
04
02
05
03
06
Valuelife Encouragedevelopmentandrecognizeeffort
Respectfortheenvironment
Focusonthecustomer
Financialsolvency Actwithintegrity,transparencyandcommitment
Mission Vision
Initiatives:
Recognition and initiatives Duringtheyear,CELEOreceivedtwoimportantawardsandparticipatedinvarious
nationalandinternationalinitiatives:
RecognizedasaBenchmarkbytheBrazilianElectricityRegulatoryAgency(ANEEL)RankingofOperationalEfficiency,ranking1stintheyears2015and2016.TechnicalNotenº164/2017-SRM/ANEEL(dated:10/04/2017).
TheNationalSystemOperator(ONS)affirmedthe„GoodPerformanceofTransmissionFacilities“andthattherearenorecordsthatdisprovethequalityofitsoperationinONSletter0372/100/2017(dated:02/22/2017).
In2017,CELEOassumedvarious
commitmentsandtargetsandsubmittied
itssustainabilityperformanceindicators
(Environmental,SocialandGovernance
-ESG)totheGlobalRealEstate
SustainabilityBenchmark(GRESB)for
thefirsttime,inordertoevaluateits
managementinrelationtotheseissues
andcompareitwithothercompaniesin
thesector;
AdhesionoftheElecnorGroupcompanies
andAPGtotheGlobalCompactandthe
SustainableDevelopmentGoals(SDG).
GRI 102-16
Corporate Principles
CeleoRedesBrasilisrecognized
asaCompanythatdemonstrates
ahighdegreeofqualityinwhatit
does,settingabenchmarkforits
integrity.Itsprinciplesarebased
onprofessionalrelationships,
promotionofafairandmotivating
workingenvironment,involvement
insocialprojectsintheareas
whereitoperatesandadesireto
constantlyupdateandimproveits
processes.Thesebusinessprinciples
arereflectedintheCorporate
IntegrityProgramandtheCodeof
Ethics
Celeo Redes Brasil20 Sustainability Report • 2017 Celeo Redes Brasil 21Sustainability Report • 2017
VCTE
LTT
CTE
PTE
ENTE
LTC
IMTE
CAIUÁ
BTE
BTE II
JTE
CANTAREIRA
LT(km)
Transformers(MVA)Substations
BeganOperationConcession Share (%)
324
695
65
-
220
279
365
142
581
-
940
342
2
6 (1)
3 (2)
(1)
2 (1)
2 (1)
2
5 (2)
10 (4)
1
6
2
-
1800
675
800
200
200
-
700
300
200
-
-
May/06
Nov/08
Jan/10
Dec/10
Jul/12 - Sep/15
Sep/13
Dec/14
May/14 - Jun/14
Nov/10 - Jan/11
Aug/12
Aug/14
Oct/09 - Dec/12
Jan/13 - Feb/13
Feb/18
100
100
100
100
100
100
51
51
50
50
33
51
KeySubstationMaintenance BaseCenter of OperationsOperational LineLine Being Built
Presence in Brazil
CELEOoperatesin10Brazilian
states,with12energytransmission
developmentstotaling3,953kmof
transmissionlinesand4,875MVA
oftransformationcapacityin42
substationsofthebasicnetwork-of
which12areitsownsubstations.
Sixoftheseenterprisesare100%
ownedbytheCompanywiththe
remainderrepresentingdifferent
shareholdinginterests.
Themostrecentcompany
constitutedwith100%ofcapitalis
theSerradeIbiapabaTransmissora
deEnergiaS.A.(SITE),afterCELEO
wontheEnergyTransmission
Auction02/2017conductedbyBM
&FBOVESPA(B3)inDecember
2017.
DEZ/2017
GRI 102-2, 102-6, 102-7, EU4
Celeo Redes Brasil22 Sustainability Report • 2017 Celeo Redes Brasil 23Sustainability Report • 2017
Celeo Redes Brasil24 Sustainability Report • 2017 Celeo Redes Brasil 25Sustainability Report • 2017
The Business and its History
Celeo Redes Brasil marks its 17 years of operations in the Brazilian market with recognition in the energy transmission sector. Over the years it has won important battles in the process of creating its business portfolio, which now consists of 12 concessions in several states in the country.
2017
TheTransmissionBusinessisseparate
fromtheGeneration,Distributionand
TradingofEnergy.
Tobecomeatransmissionconcessionaire
acompanyneedstodevoteitselfto
winninganauctionbyofferingthe
highestPermittedAnnualRevenue(RAP)
discounttoANEEL.
TheobjectoftheConcessionAgreementincludes
theConstruction,OperationandMaintenanceofthe
TransmissionFacilitiesdescribedintheTenderNotice.
ThetermoftheConcessionis30years,extendableforthe
sameperiodatthesolediscretionoftheGrantingAuthority.
TheAgreementdefinestheprincipalcontractualfeatures,
includingthedateofentryintoCommercialOperationand
theendoftheConcession.
Auction002/2000:
ElecnorS/Aparticipates
inthesecondANEEL
transmissionauctionand
winsthebiddingforlotB
Transmissioncompaniesenterintoagreements
withANEELandONS,whichareresponsible
formanagingtransmissionservicesinBrazilThis
includesremuneratingtheTransmissioncompanies
throughPermittedAnnualRevenue(RAP).
Theseagreementsregulatetherightsand
obligationsoftheconcessionairesandtheusers,
ANEELandONS.
Transmissioncompaniesareremuneratedforthefull
availabilityoftheirfacilities,regardlessofthevolumeof
energytransmittedthroughtheirassets,followingthe
recommendationsoftheefficiencyincentivemodel.
TheresourcesforthepaymentoftheTransmission
companiescomefromthechargesappliedforuseof
thetransmissionsystem(CUST)andpaidbytheusers,
calculatedandregulatedbytheONS.
GENERATION TRANSMISSION
Publicgenerators
Independentproducers
Self-producers
TRADING
Paymentforuseofthe
transmissionsystem
Free,specialand
captiveconsumers
GRI 102-6
The energy sector
The Business Timeline
2000
ConstitutionofElecnor
TransmissãodeEnergia
S/A(ETESA)
12concessionswonby
thePlenaTransmissoras
Consortium(Elecnor,
Cobra,Abengoaand
Isolux)
2001 2001 a 2007
ETESAthebiddingfor
5concessions:Pedras,
Coqueiros,Brilhante,
EncruzoandCorumbá
2008 a 2010
Saleofsevenconcessions
(PlenaTransmissoras)to
theChinesecompany
StateGridBrazilHoldings
2010
Auction006/2011:Wins
thebiddingforlotsEandI
inpartnershipwithCOPEL
(IMTEandCAIUÁ)
2011
Auction005/2012:wins
thebiddingforlotBin
partnershipwithCobra
(BTE2)
APGacquiresa49%share
inCeleoRedesSLU
20122014
Auction001/2014:wins
thebiddingforlotFin
partnershipwithCOPEL
(CANTAREIRA)
2014
Companynamechanged
toCeleoRedesBrasilS.A.
2015
Adherence to the Corporate Integrity
Program - Compliance
Beginningof
implementationofthe
IntegratedManagement
System:ISO9001,ISO
14001andOSHAS18001
2016 2016
Auction002/2017:winsthebiddingforlot2,located
inthestatesofPiauiandCeara(SITE)
DISTRIBUTION
Paymentforuseofthe
distributionsystem
Celeo Redes Brasil26 Sustainability Report • 2017 Celeo Redes Brasil 27Sustainability Report • 2017
Celeo Redes Brasil28 Sustainability Report • 2017 Celeo Redes Brasil 29Sustainability Report • 2017
Corporate Governance
Celeo Redes Brasil values transparent and strightforward relationships with its stakeholders. Therefore, it pursues best Governance practices to guide its actions.
Sinceitisaprivately-held
corporationitisnotmandatory
forthecompanytohaveaBoard
ofDirectorsunderBrazilianlaw.
However,withregardstoCorporate
Governance,therespective
managementbodyisinstalledin
CeleoRedesSL,headquarteredin
Spain.
ThemanagementofCeleoRedes
BrasilconsistsofaBoardof
ExecutiveOfficerscomposedof
threedirectors(General,Operations
andExecutive),withatermof
threeyearsandwithre-election
permitted.Thepowersofthe
executiveofficersaredefinedin
CELEO’sBylaws,whichestablishthe
boundariesoftheresponsibilitiesof
eachofthem.
CommitteeResponsiblefortheCIP:
Responsibleforoverseeingand
monitoringtheCorporateIntegrity
Program(CIP),thecommittee
iscomposedofthreesenior
executivesandactsindependently.
Establishedin2016,thecommittee
wasappointedatanExtraordinary
Shareholders‘Meeting,witha
regularagendaofmeetingstobe
held.In2017anordinarymeeting
washeldduringwhichthefollowing
resolutionswereconsidered:
presentationoftheresultsofthe
previousyear;reviewoftheCIP;
analysisofoccurrencesrelating
totheTransparencyChannel;and
progressoftheCIPaudit.
IMSCommittee:
Responsibleforoverseeing
andmonitoringtheIntegrated
ManagementSystem(IMS),
proposingimprovementsto
processes,toriskmanagementand
tothemanagementofinformation
andknowledge.Thecommittee
iscomposedof10members
electedbytheCompany‘sBoard
ofExecutiveOfficers,includingthe
appointmentofarepresentativeof
eachareainvolvedintheIntegrated
ManagementSystem.Themeetings
takeplacemonthlyandin2017
therewere12meetingstodiscuss
thefollowingresolutions:analysis
andapprovalofmanagement
procedures;monitoringof
implementationoftheIMS;release
ofresourceswhenappropriate;
monitoringofnonconformities;
monitoringthemanagementof
legalrequirements;monitoringof
indicators;andotherspecificissues
relatedtotheIMS.
Board of Directors and Boardof Executive Officers
Committees GRI 102-18; 102-24
Governance Structure
Celeo Redes Brasil30 Sustainability Report • 2017 Celeo Redes Brasil 31Sustainability Report • 2017
TheCorporateGovernanceofCeleo
RedesBrasilislinkedtoCeleoRedes
SL,inSpain.Thestructureconsists
ofaBoardofDirectorswithfour
directors-tworepresentingAPG
andtworepresentingtheElecnor
Group.Atthelocallevel,theBoard
ofExecutiveOfficersisthehighest
governancebodyofCeleoNetworks
Brazilandrespondsdirectlytoits
shareholders.Thefunctionsand
powersofthehighest-levelexecutive-
theGeneralManager-aredefinedin
theBylaws,anditistheirresponsibility
torepresentthecompanyindividually
intheexerciseoftheirduties.
TheCompanyalsohasanIMS
(IntegratedManagementSystem)
CommitteeandaCommittee
ResponsiblefortheCIP(Corporate
IntegrityProgram).Throughthe
committees,theSeniorManagement
andthecorporatemanagementteam,
togetherwiththeothermanagersof
theCompany,analyzethedecisions
anddirectthemtotheother
employeesofthegroup.
Thedecision-makingprocess
considerseconomic,socialand
environmentalopportunities,
impactsandriskssoastoadopt
goodpracticesintheCompany‘s
day-to-dayoperations.TheIMS
Committeealsodeliberatesonthese
aspects,especiallythoserelated
tocertification,Quality,Health
andSafetyandtheEnvironment.
Inaddition,theBoardofExecutive
Officersisresponsiblefordefining,
approvingandupdatingthemission,
visionandvalues,aswellasdefining
strategies,policiesandtargets.
TheSeniorManagementassesses
performancewithregardstothe
sustainabilityaspects-Environmental,
SocialandGovernance(ESG)-within
thebusiness,withtheManagement
Teamand/ortheGroup‘sBoardof
Directors.Thisassessmentiscarried
outthroughreportsandregular
meetingsoftheBoardofDirectors.
GRI 102-19, 102-20, 102-22, 102-23, 102-26, 102-28, 102-30
Organizational Governance Chart Corporate Management ChartIn2017,theCompany‘sorganizationalchartwasredefinedasaresultofareorganizationof
CorporateGovernancetoachievegreatersolidityinmanagement,valorizationsofassetsand
theincorporationofsustainabilityintobusinessstrategies.
Intheyear2016,CeleoRedesBrasil
initiatedtheCorporateIntegrity
Program(CIP),withtheadhesionof
allemployees.Theobjectiveofthe
programistoguidetheemployees
ofCELEOanditssubsidiaries
regardinginternalcontrolsand
controlconceptsandmethodsthat
shouldbeadoptedtoimprovethe
parametersandethicalstandards
ofcontrols,transparencyand
efficiency,inadditiontocomplying
withlegalrequirements.
Aswellaspromotingasetof
internalmechanismsandprocedures
forintegrity,auditing,andeffective
applicationoftheCodeofEthics
andtheStandardsofConduct,the
programactsasatransparency
channelforemployees.The
managementoftheCIPisthe
responsibilityoftheCorporate
andLegalDepartment,which
isresponsiblefordirectingthe
committee‘sactivities,aswellas
internallyinvestigatinganyreports
and/orsuspicioussituations.
In2017,theCompanyhiredan
externalauditortoassessthe
incorporationoftheCorporate
IntegrityProgramintomanagement,
conferringalevelof3onascaleof
1to5.Twentyrecommendations
wereflaggedup,fourofwhichare
mandatoryandtheother16areat
prioritylevel.
Ethical Management
CELEO Redes Boards of DirectorsCELEO Concesiones 51% | APG Infrastructure 49%
Members of the Board:Joaquín Gómez de OleaJose Angel Lostao
Dirk HoversRobert Jan Bakker
Corporate ServiceAgreement
ManagementTeam
Jaime SáenzSantiago OraáÁngel OrtegaFrancisco ChicaManuel Sanz
ESG & QualityComitee
ESG & Quality ResponsibleMarcelo Vinicius
MembersFrancisco ChicaAlan HeinenMauricio ScovinoAugustinho SimoesMarcus BalataJosé Renato
Environment ResponsibleCristopher Cesar
H&S ResponsibleAlexandre Brito
Quality ResponsibleGisélia Ribeiro
CELEO Redes Brasil
ComplianceComitee
PIC ResponsibleAlan Heinen
PresidentAlberto Ferrández
MembersJaime SáenzFrancisco ChicaJosé Renato
GeneralManager
Francisco Chica
Operations, Legaland Economic Depts.
Development of New Business
Board ofExecutive Officers
Occupational Healthand Safety
Financial and AdministrativeDepartment
LegalCorporate
Human ResourcesPersonnel Department
Tax and accountingAdministrative
SuppliesFinancial
SustainabilityIMS
Operation and RegulationEnginnering and Maintenance
ITThe Environment
Projects
Legal and CorporateDepartment
OperationsDepartment
DEZ/2017
FEV/2018
Celeo Redes Brasil32 Sustainability Report • 2017 Celeo Redes Brasil 33Sustainability Report • 2017
Combating Corruption ACeleoRedesBrasiladvocates
transparentandefficientwork
practices,withinstruments
andguidelinestoprovide
guidanceonethicalconduct,
basedontheAnti-Corruption
Law12,846/2013andDecree
8,420/2015.In2017,100%
ofCELEO‘soperationswere
submittedtoriskassessments
relatedtocorruption.
Duringtheprocessof
preparationandimplementation
oftheCIP,theCompany
developedamaturitydiagnosis
anddefinedamatrixof27
compliancerisksbasedon
interviewswiththemain
membersoftheseniorand
middlemanagement.Action
plansandmitigatorymeasures
werethendrawnupforthese
risks.Inordertodealwiththe
risksidentifiedasbeingrelevant
forcompliancewiththeCIP,
aprocedurewasadoptedfor
theProcurementofGoods
andServiceswithassessment
ofsuppliersandthirdparties
(backgroundcheck),among
othercorporatepoliciesand
procedures.Inaddition,the
CIPreferencesspecificpoints
relatingtotheidentification
ofPoliticallyExposedPersons
ingoodsandservices
procurementprocess.
Thisworkalsoresultedinthe
creationofthe„Transparency
Channel“,ane-mailserviceset
uptoreceivedenunciations
andreportsofwrongdoing,
suggestionsordoubtsabout
theProgram.In2016,thefirst
yearoftheCIP,ananonymous
complaintaboutpossible
irregularitiesintheSuppliesarea
wasreceivedandsubsequently
monitoredandinvestigatedby
theCIPmanagerandreported
totheCommittee.Meetings
wereheldwiththeentireSupply
teamandafterconfirmationof
theincidencetheemployee
wasdismissed,followedby
restructuringofthepersonnelin
thearea.
In2017,theCompanycontinued
withtheCorporateIntegrity
Program,aswellasmaintaining
theTransparencyChannelas
amanagementtool.There
werenoreportsofcorruption
receivedviathecommunication
channelsormadeknown
directlytothecorporate
management.However,32
occurrenceswerereportedthat
contributedtotheimprovement
ofinternalprocesses.
TheCompanyalsoextended
theTransparencyChannel
toanexternalserversoas
toguaranteetheanonymity
ofthosereportingthe
occurrences,emphasizingthe
integrityandefficiencyofthe
CIP.
GRI 102-17, 205-1, 205-3
EMAIL: [email protected]
EXTERNAL CHANNEL: www.canaldetransparencia.celeoredes.com.br
Training for the Corporate Integrity Program (CIP)
GRI 205-2
OverthelasttwoyearsCeleoRedesBrasil
organizedtrainingontheCIPforitsemployees
andSeniorManagement.Duringthisperiod
therewerefourclasseswithathree-hour
workloadinvolvingtheparticipationof
approximately150professionals,representing
76%ofthetotalworkforceandincluding
25fromtheSeniorManagementandthe
ComplianceCommittee.204employees
receivedtrainingin2017.
Doubts / Others (4)
66 %
13 %
6 %
6 %
3 %
3 %
3 %
Direct Contracting (20)
Conflicts of Interests – General (3)
Not applicable to the CIP (2)
Report of possible Fraud (1)
Request for Sponsorship – outside of the CIP (1)
Gifts (1)
Occurrences of CIP - 2017
Celeo Redes Brasil34 Sustainability Report • 2017 Celeo Redes Brasil 35Sustainability Report • 2017
CIP Highlights in 2017
25DisseminationoftheCIPinaTechnicalWorkshopwith
25participants
Disseminationofthethemeviathe
internalcommunicationchannelsandtheIntranet
56Inductionwith
56newemployees
101Trainingon„ProfessionalEthicsandtheCorporateIntegrityProgram“attheIIISIPAT,attendedby101employees
2Twogroupsretraining
attheUberlândiatrainingcenter,with38employees
inattendance.
CELEOworksinaccordancewiththe
currentlegislation,consideringthe
particularitiesoftheelectricsector
inallregionswhereitoperates.The
Legalareaisresponsibleforcontrol
ofcompliancewithlegislation
andlegalrequirements,seeking
toimproveinternalprocedures
inordertostrengthenCorporate
GovernanceandtheIntegrated
ManagementSystem.
Duringtheyear,twocasesof
arbitrationwererecordedfor
contractual/commercialmatters,
butnonerelatedtonon-compliance
withthelaw.CeleoRedesBrasil
declaresthatithasnotidentified
anynon-compliancewithlawsand/
orregulationsinthesocialand
economicareasin2017.
Regardingenvironmentalissues,
theCompanystrictlymonitorsthe
constraintsofitsenvironmental
licensesandcertificatesandhas
operationalproceduresinplace
tomeetenvironmentalstandards
thatareincompliancewithatleast
theminimumrequirementsof
environmentallegislation.Inorder
toensurethatallapplicablelegal
requirementsareidentifiedand
managedtheEnvironmentarea
hasstandardizeditsoperationsin
relationtofederallaws,makingan
exceptiononlywhentherearemore
stringentlocal(stateormunicipal)
parametersorwhendeterminedina
licensingprocess.In2017thetarget
ofzeropenaltieswasestablished.
However,onefinewasreceived
attheendoftheyear,referringto
non-compliancewithenvironmental
conditionsin2010-2011,atthetime
managedbyPlena,resultinginafine
ofBRL35,800.
GRI 419-1, 307-1
Compliance
Celeo Redes Brasil 37Sustainability Report • 2017Celeo Redes Brasil36 Sustainability Report • 2017
Celeo Redes Brasil38 Sustainability Report • 2017 Celeo Redes Brasil 39Sustainability Report • 2017
CorporateResponsibility
Sustainability is a value for the Company. When defining its strategies, CELEO evaluates the opportunities, risks and impacts of its business to society and to the environment.
CELEOdefineditsstrategicgoalsfor
theshortandmediumterm.Thegoals
arereviewedannuallybytheBoard
ofExecutiveOfficersandmanagers
duringthestrategicplanningprocess,
whichincludesanalysisofchanges
ininternalandexternalscenariosin
ordertosidestepadversitiesthat
couldaffectitsabilitytoachievethese
results.
TheStrategicPlanningprepared
fortheperiod2017-2021includes
strategiesforgrowthandleverage
ofthebusiness.ItalsodefinesAnnex
I,aspecificdocumentdealingwith
sustainabilityaspectsinthebusiness,
knownas„Environmental,Social
andGovernance“(ESG),which
presentsthesustainabilitygovernance
structure,aswellasitsactionsand
goalsforthecomingyears.
TheESGindicatorsareperiodically
assessedbytheSeniorManagement
atmeetingsandthroughmonthly
reports.Toincentivisetheteams,the
CompanydefinedESGtargetslinked
tothevariableremuneration(bonuses)
ofallemployees,atalllevels.
CELEOalsoestablishedthe„IMS
Policy“,withthepurposeofdirecting
itsactivitieswithregardtointegrity,
quality,theenvironment,healthand
safetyandsustainability.
Onthegloballevel,theESG
performanceindicatorsarebeing
submittedtoGRESBforthefirst
timeinordertocompareCELEO
withothercompaniesinthesector
andthusproposeimprovementsto
management.
ESG
CIP
RiskManagementEngagement
IMS
Transparency andaccountability Integrity
Quality, healthand safety andthe environment
Risks andopportunitiesmanagement
Strategic GoalsGRI 102-28
Sustainability Strategy
Sustainability Strategy
Celeo Redes Brasil40 Sustainability Report • 2017 Celeo Redes Brasil 41Sustainability Report • 2017
CeleoRedesBrasil’s
sustainabilitystrategyisguided
bythedirectivesoftheElecnor
Group,whichconsidersthe
issueinitscorebusinessand
thereforeseekstodisseminateit
toallcompaniesinwhichitholds
acorporateinterest.
Havingestablishedthisstance,
CELEOisclearaboutthe
impactsofitsactivitieson
people‘slives,societyandthe
environment.Therefore,itseeks
toincorporategoodpractices
intoitsbusinessstrategies,not
onlygeneratingvalueforthe
Companybutalsocontributing
tosustainabledevelopment.Its
infrastructureprojects(energy
transmission)arealigned
withglobalchallenges,which
seektoguaranteeaccessto
energy,contributetosocial
andeconomicdevelopment,
generatejobsandincome,etc.
Inpractice,thesustainability
guidelinesarealignedwiththe
managementoftheCompany,
whichcombinesIntegrityin
relationswithqualityofservices,
ensuringhealthandsafetyin
operationsandcompliancewith
environmentalrequirements.To
completethiscycle,CELEOhas
beenestablishingengagement
actionstoprovidetransparency
andaccountabilitywithits
stakeholders.
CeleoRedesBrasilfollowsthe
guidelinesofitsshareholders
regardingparticipationinglobal
commitments.TheElecnorGroup
andAPGaresignatoriestothe
PrinciplesoftheUnitedNations
GlobalCompactandtheSustainable
DevelopmentGoals(SDGs).
AlthoughtheCompanyisnotyet
aformalsignatorytotheGlobal
CompactandtheSDGs,the
NewBusinessDevelopmentand
Sustainabilityareahasmapped
whichSDGsarealignedwiththe
Company‘sbusiness.Inaddition,
CELEOcomplieswiththeprovisions
oftheAnti-CorruptionLawandits
regulations(Lawno.12.846/2013)and
DecreeNo.8,420/2015,whichapply
toPrinciple10oftheGlobalCompact.
InMay2018,CELEOsigneda„Letter
ofCommitment“aspartofthe
processofjoiningtheUnitedNations
GlobalCompact.
• Electricityisabasicgoodandcontributes
toimprovingthequalityoflifeof
entirepopulationsandtheeconomic
developmentofcountriesandtheworldas
awhole(Goals1,2,3and10).
• Themainimpactoftheprojectsisto
improveandensurethereliabilityofthe
NationalInterconnectedSystem(SIN).
Indirectly,itdiffuselybenefitssocietyasa
whole,reducingpovertyrates(Goal1)and
increasingaccesstoasecureenergysource
(Goal7).
• Theprojectsalsogeneratehundreds
ofdirectandindirectjobsduringthe
constructionphase,atwhichtimedecent
workingconditionsareprovidedforall
employees(Goal8).
• Theprojectshelpincreasethesupplyof
renewableenergy(Goals11and13).
CELEO’s business activities and the SDGs
Voluntary CommitmentsGRI 102-12
Celeo Redes Brasil 43Sustainability Report • 2017Celeo Redes Brasil42 Sustainability Report • 2017
Thecommitmenttomanagement
focusedonresultswithregards
tothesustainabilityaspects
arelaidoutinthetablebelow,
demonstratingthecommitmentof
theCELEOteamtofindingsuitable
andachievablesolutionsforthe
business:
Commitments Assumed
Performance
Governance
Corruption, Ethics Management and Compliance - Evolution ofMonitoring and Maturity
Commitments Undertaken 2018
Integrated Management System (quality, environment, health and safety)
1st Sustainability Report (GRI Standards)
Updating of Socio-Environmental Reports ANEEL (10 concessionaires)
Participation on the GRESB Platform
Thorough Corporate and Contractual Review (Internal Due Diligence)
Operacional
Control of the Company's Archive
Availability of Facilities (Transmission Line, Transformer, Static Compensators)
Target / Action
ESG Performance Indicators - Sustainability - IMS - CIP
Reduction of Judicial Liability (landholding, regulatory, number of cases,contingencies, impacts of convictions, ...)
Failure Rate (Transmission Lines: General, 500kV and 230kV)
Failure Rate (Equipment: Transformers, Reactors and Static Compensators)
Variable Portion/Gross RAP
0 serious incidents
Frequency Rate (Own Employees/Subcontracted
Environment
Avoidance of Environmental Penalties (compliance with the conditionsof Licenses: LP, LI, LO and/or Grants)
First Greenhouse Gas Inventory (GHG Protocol)
Standardization of structures for storing waste from substations
Disposal of demobilized batteries via Reverse Logistics
Standardization of effluent treatment systems (septic tanks)
Standardization of water consumption units (SEs and Maintenance Bases)with hour meters and water meters
Reduction in Water Consumption (Volume consumed m³)
Forest Replanting
Social
Engagement with Communities (improvement of communication channelsand profile mapping)
Training Plan (technical, behavioral, development)
Jobs Plan (responsibilities, qualification, experience, ...)
Implementation of Social Project:a) Atibaia (CRAS reform and technical staff training)b) Monte Santo de Minas (environmental education, construction of a sortingand composting plant, selective rubbish collection)
Basic Quilombola Environmental Project
Basic Indigenous Environmental Project
Economic
Refinancing Structuring
Financing of Reinforcements
BNB Consultation Letter, Structure of Guarantees and Issuance of REIDI
Deployment of Tax Robot and Registration of Materials
Return of Equity and Substitution of BNDES Bonds
Approval of SUDAM Incentive
Implementation of the KPMG ActionPlan - 2018 (2nd CIP audit – Planned for1st semester/2019)
ISOs and OHSAS Certification4th Quarter/2018
Audited and Published - April/2018
Send to Aneel - April/2018
UpLoad: Apr - Jun/2018
4th Quarter/2018: Update of theCompany's Securities
4th Quarter/2018: Completion ofthe GEDOC Project
15 to 20% reduction in the number oflawsuits (Base: Dec 2017 -> 89 cases)
99.7%
Monitoring
Monitoring
0.5% and provisions
0
Fr <7 / Fr <9
Sr <0.15 / Sr <0.3
0 Penalties
Audited and Published - April/2018
5 facilities
100%
3 systems
2 substations
Reduce water consumption by 3% inat least 2 facilities
10 hectares - CAIUA20 hectares - JTE
Completion of the Integra Project
> = 75% compliance with plans
100% of jobs described
CANTE
Completion - IMTE
Execution - CAIUA
LTT and VCTE
2nd Quarter/2018 - PTE and LTC
2nd Quarter/2018 - JTE - Tramo Sul
CANTE
SITE
CELEO
Severity Rate (Own Employees / Subcontracted)
Performance
Governance
Corruption, Ethics Management and Compliance - Evolution ofMonitoring and Maturity
Commitments Undertaken 2018
Integrated Management System (quality, environment, health and safety)
1st Sustainability Report (GRI Standards)
Updating of Socio-Environmental Reports ANEEL (10 concessionaires)
Participation on the GRESB Platform
Thorough Corporate and Contractual Review (Internal Due Diligence)
Operacional
Control of the Company's Archive
Availability of Facilities (Transmission Line, Transformer, Static Compensators)
Target / Action
ESG Performance Indicators - Sustainability - IMS - CIP
Reduction of Judicial Liability (landholding, regulatory, number of cases,contingencies, impacts of convictions, ...)
Failure Rate (Transmission Lines: General, 500kV and 230kV)
Failure Rate (Equipment: Transformers, Reactors and Static Compensators)
Variable Portion/Gross RAP
0 serious incidents
Frequency Rate (Own Employees/Subcontracted
Environment
Avoidance of Environmental Penalties (compliance with the conditionsof Licenses: LP, LI, LO and/or Grants)
First Greenhouse Gas Inventory (GHG Protocol)
Standardization of structures for storing waste from substations
Disposal of demobilized batteries via Reverse Logistics
Standardization of effluent treatment systems (septic tanks)
Standardization of water consumption units (SEs and Maintenance Bases)with hour meters and water meters
Reduction in Water Consumption (Volume consumed m³)
Forest Replanting
Social
Engagement with Communities (improvement of communication channelsand profile mapping)
Training Plan (technical, behavioral, development)
Jobs Plan (responsibilities, qualification, experience, ...)
Implementation of Social Project:a) Atibaia (CRAS reform and technical staff training)b) Monte Santo de Minas (environmental education, construction of a sortingand composting plant, selective rubbish collection)
Basic Quilombola Environmental Project
Basic Indigenous Environmental Project
Economic
Refinancing Structuring
Financing of Reinforcements
BNB Consultation Letter, Structure of Guarantees and Issuance of REIDI
Deployment of Tax Robot and Registration of Materials
Return of Equity and Substitution of BNDES Bonds
Approval of SUDAM Incentive
Implementation of the KPMG ActionPlan - 2018 (2nd CIP audit – Planned for1st semester/2019)
ISOs and OHSAS Certification4th Quarter/2018
Audited and Published - April/2018
Send to Aneel - April/2018
UpLoad: Apr - Jun/2018
4th Quarter/2018: Update of theCompany's Securities
4th Quarter/2018: Completion ofthe GEDOC Project
15 to 20% reduction in the number oflawsuits (Base: Dec 2017 -> 89 cases)
99.7%
Monitoring
Monitoring
0.5% and provisions
0
Fr <7 / Fr <9
Sr <0.15 / Sr <0.3
0 Penalties
Audited and Published - April/2018
5 facilities
100%
3 systems
2 substations
Reduce water consumption by 3% inat least 2 facilities
10 hectares - CAIUA20 hectares - JTE
Completion of the Integra Project
> = 75% compliance with plans
100% of jobs described
CANTE
Completion - IMTE
Execution - CAIUA
LTT and VCTE
2nd Quarter/2018 - PTE and LTC
2nd Quarter/2018 - JTE - Tramo Sul
CANTE
SITE
CELEO
Severity Rate (Own Employees / Subcontracted) ESG Performance Indicators - Sustainability - IMS - CIP
Celeo Redes Brasil44 Sustainability Report • 2017 Celeo Redes Brasil 45Sustainability Report • 2017
CeleoRedesBrasilunderstands
thatengagingwithstakeholdersis
aprocessofparamountimportance
forthesustainabilityofitsbusiness.
ThisprocessrequirestheCompany
tohaveatransparenttwo-way
relationshipthroughwhichthe
expectationsofstakeholdersare
consideredindecision-making.
Awarethatmuchremainstobedone
toclosethecycleofengagement,
theCompanydedicateseffortsto
establishingeffectivestrategiesin
thisarea.
In2017,thestakeholder
engagementprocesswasreviewed,
beginningwiththemappingof
stakeholders.The„Stakeholder
CommunicationProcedure“wasalso
updatedtoensureasystematicflow
ofinformation,whetherinternally
foremployeesandshareholdersor
externallyforregulators,customers,
suppliers,communities,etc.
Inthecaseofshareholders,for
example,theBoardofDirectors
ofCeleoRedesSLtransmits
itsassessmentsofpotential
vulnerabilitiesandprojectsunder
development,aswellasmonitoring
bestgovernancepractices.The
Board’sdecisionsaremanaged
bytheManagementTeam,which
directsthemtothelocalgovernance
managementteam,throughthe
BoardofExecutiveOfficers.With
regardstocommunityengagement,
CELEOcreatedtheIntegraProgram,
whichservesruralcommunitiesin
theareaofinfluenceoftheLinha
deTransmissãoTriângulo(LTT),as
wellasotherconcessions(CTE,LTC,
VCTE,ENTE,IMTEandBTE).The
programalsocoverstherelationship
withtraditionalandindigenous
communities.
Inaddition,CeleoRedesBrasil
offersacentralizedchannelfor
receivingcomplaintsand/or
suggestions,doubtsandqueries
throughtheOmbudsman‘sOffice
(0800941-2667).Threecomplaints
werereceivedthroughthischannel
in2017fromthepopulation
surroundingtheLTTandVCTElines,
withquestionsandconcernsabout
theimpactsoftheprojects,one
ofwhichreferredtoenvironmental
impacts.Todealwiththeseissues
teamsfromtheconcessionswere
senttoprovideclarificationand
reinforcetheAwarenessCampaign
withthelocalresidents.
Stakeholder Engagement
GRI 102-40, 102-43, 103-2
Stakeholder
Shareholders, Investorsand Partners
Sustainableprofitability
Need
Integrated Management System (IMS),according to the requirements of ISO 9001,ISO 14001 and OHSAS 18001
Sustainability Action Plans (SAP)
Report to GRESB
Reports and periodic meetings
FrequencyForm ofEngagement Means of Attending to this Group
Empowerment Ongoing
Financial Institutions Paying back of loans Transparently sharing reliable informationwith the financial agent Transaction Within the term of use
of the financed resource
Customers Provision of publictransmission service
Monitoring of the ESG PerformanceIndicatorsTransaction Throughout the
concession period
Public Administrationand Regulatory Agencies
Compliance withcurrent legislation
Implementation of the legislation controlsoftware applicable to the scope of CELEOactivities, favoring the management andenforcement of applicable laws
Involvement Ongoing
External Providers Execution of the required service or delivery
Elaboration of contractual criteria forintegrity, quality, the environment, andhealth and safety
Integration of external suppliers beforeservice execution (or goods supply),informing them of the dangers, risks andenvironmental impacts and aspects towhich they will be subjected.
Conduct due diligence (qualification andperformance evaluation)
Transaction
Before, during, andafter providing the
service or supplyinggoods
Employees Employment and income
Implementation of the necessary resources (adequate furnishings, training, cleaning andmaintenance of the work environment, worktools, educational development)
Participation and consultation of employeesand communication channels (internalnewspaper, ombudsman, Intranet, dialogues,meetings, feedback)
Involvement Ongoing
Industry Associationsand Employers
Be the institutional"Spokesperson"
for the common interestsof its associates/members
Participation in the WGs of the associations,public hearings and consultations, industryforums/meetings/events, compliance withthe collective agreement
Involvement Ongoing
CommunitiesDefend the areas occupiedand natural resources used,related to their sustainability
IImplementation of environmental programs,Integra Project and anti-wildfire campaignsand hosting of public hearings, whennecessary
Involvement
During the stage ofpreliminary licensing
and installation ofnew developments,
as well as duringthe operation
Scientific and AcademicInstitutions
Produce and disseminatescientific and technological
knowledge
Compliance with the requirements establishedin the ANEEL R&D ManualInvolvement Ongoing
MediaReceive correct information
in response to questionsasked
Through the "Spokesperson" of CELEO,using the requested means of communication(TV, radio, newspaper, e-mail), being properlyprepared
Inform When requested
Celeo Redes Brasil46 Sustainability Report • 2017 Celeo Redes Brasil 47Sustainability Report • 2017
Integra ProgramFollowingitsstakeholderengagement
strategies,CELEOcreatedtheIntegraProgram
toengagewithruralcommunitiesintheareas
arounditsconcessions.Intheyear2017alone,
1,085propertieswereregistered.Inadditionto
thefamiliesowningtheseruralproperties,the
targetpublicforrelationshipsisthemunicipal
government,federalandstateagencies,public
servicesandlocalleadership.
Theprogramwasdesignedbasedon
internationalstandardssuchasAA1000andthe
GRIindicators,torunforaperiodoffouryears.
In2017,registrationof80%oftheproperties
andfamilieswascompletedandaction
planshavebeendrawnupforsomeofthe
concessions.Otherstrategicactionsincluded
thecreationoftoolstoguagetheperceptions
ofthepopulationforsubsequentincorporation
intoCELEOactivities,aswellasthetraining
ofO&Mteamsinassertivecommunication
andcrisismanagementsoastoavoidconflict
withlocalleadersintheareaofinfluenceof
TransmissionLines.
Cycle of the Integra Program Campaigns
EnvironmentalVulnebability
SensitivityDiagnosis
SocioeconomicDiagnosis
Social Registerof Rural
Properties
PreliminarySurvey
InternalTraining(O&M)
ReviewPrintingSending
Educational Materialfor Distribution at
the TLs
Licenses
Mapping ofLandowners
Status of PEAs and PCSs
Status of WildfirePrevention andCombat Plans
Status of AgreementContracts PREVFOGO/IBAMA
O & M Teams Data
TL Route Data
DisconnectionHistory Data
Environmental Studies
Year I Educationalmaterial
Socialregistration
LTT and BTW lines
MapSensitivityWildfires
Training(O&M)
Year II RegistrationIMTE, ENTEand VCTE
lines
Educationalmaterial
Report
Year III RegistrationLTC and CTE
lines
Educationalmaterial
Report
Year IV Educationalmaterial Report
GRI 413-1
Celeo Redes Brasil48 Sustainability Report • 2017 Celeo Redes Brasil 49Sustainability Report • 2017
Interaction with the Brazilian Energy Sector
GRI 102-13
Participationinindustryassociations
allowsCELEOtoremainuptodate
andreceivefirsthandknowledgeof
allofthetechnological,economic
andregulatoryinnovationsinthe
electricsector.Italsoallowsthe
Companytoactivelyparticipate
inthecreationandpromotionof
policiesandinnovations,which
simultaneouslyplacesitinthe
positionofaninstigatoranda
beneficiary.
During2017,CELEOparticipated
inforums,meetingsandworking
groupsofbusinessorganizations
andindustryassociations,asshown
inthetablebelow:
ABDIB-BrazilianAssociation
ofInfrastructureandBase
Industries
Involvement: ParticipatesintheTransmissionCommittee;
Issues discussed: Reviewandimprovement
ofNormativeResolutions;
meetingswithindustry
regulators(ANEEL,MMEand
EPE);updatingofANEEL‘s
ReferencePricesDatabase.
ABRATE–BrazilianAssociation
ofElectricityTransmission
Companies
Involvement:Member;Functions: CELEOjoinedtheassociationattheendof2017.
ABSOLAR–Brazilian
PhotovoltaicSolarEnergy
Association
Involvement: AmemberandparticipatesintheCentralized
GenerationWorkingGroup;
Issues discussed:SolarEnergyAuctions;
FlowMargin;
ThirdPartyStudies;Reversal
ofReserveEnergyContracts;
NetworkProcedures;etc.
ABRAPCH–SolarEnergy
Auctions;FlowMargin;Third
PartyStudies;Reversalof
ReserveEnergyContracts;
NetworkProcedures;etc.
Involvement: Member;Issues discussed: Participationofthisenergy
sourceinenergyauctions.
OfficialSpanishChamberof
CommerceinBrazil
Involvement:Member;Issues discussed:Institutionalmeetings,meetings
withstrategicplayersintheenergy
sectorandthefinancialmarket.
ComplianceInstituteRio Involvement: Member;Functions: Tocontributeinanorganizedandsustained
waytotheimprovementof
businesspractices,thebusiness
environmentandethicalstandards
inpublic-privaterelationships.
NationalElectricSystem
Operator(ONS)
Involvement: TheExecutiveDirectorparticipatesasa
memberoftheBoard;
Functions: ApprovetheannualbudgetpresentedbytheBoard
ofExecutiveOfficersofthe
ONS;approveandmonitorthe
investmentplan;monitorand
analyzethemanagementofthe
BoardofExecutiveOfficers.
Celeo Redes Brasil50 Sustainability Report • 2017 Celeo Redes Brasil 51Sustainability Report • 2017
Risks and Opportunities Management
SWOT Matrix
RiskmanagementisoneofCELEO‘s
prioritiesasitseekstoprevent,
reduceandcontroltherisksinherent
toitsactivities.TheCompany
createdaRiskManagement
Program–whichisaccessible
toitssubsidiaries–definingits
methodologyandproceduresfor
managingtherisksassociatedwith
thebusiness,whichareclassified
intothreecategories:Financial,
StrategicandOperational.Therisks
werestratifiedwithineachofthe
categoriesoftheprimaryprocesses
(Promotion,Financing,Construction
andO&M).
Responsibilityforriskmanagement
isalreadypartofthedailyroutine
ofemployees.Therefore,thereisa
dedicatedstructurewithintheIMS
forriskmanagementbasedonISO
31000(RiskManagement-Principles
andGuidelines)andisalsoISO
9001(QualitymanagementSystem).
Riskmanagementisaddressedby
theCommittee,withthefollowing
objectives:
• Analysethecontextofthe
organization;
• Identify,analyse,assessand
dealwithGlobalBusinessrisks;
• Guidetheorganizationin
theprocessofidentification,
analysis,assesmentand
treatmentofProcessrisks;
• Monitorcompliancewith
establishedresponsestorisks;
• Approveriskmanagement
reportsforprocessesrelatedto
Quality,theEnvironmentand
HealthandSafety;
• ApprovetheannualQuality,
EnvironmentalandHealthand
Safetyplans.
TheSeniorManagementis
responsibleformanagingthegloball
businessrisks,whichareassessed
withinthecontextofthescenarios
thatcouldaffecttheachievement
ofCELEO‘smission.TheCompany
assessrisksduringdifferent
stages:promotion(participationin
auctions);financing;construction
management-includingthehiring
ofanEngineering,Procurement,
andConstruction(EPC)firm;and
theoperationandmaintenance
phaseoftheprojects.With
regardstoopportunities,the
SeniorManagementalsoassesses
theeconomicandregulatory
scenario,aswellasthecompetitive
environmentinthecountry.
Businessrisksandopportunitiesare
formallyreviewedonanannualbasis
bytheGovernance,considering
economic,environmentalandsocial
aspects.
GRI 102-15; 102-31
1Contractedcompanyresponsiblefortheengineering,procurementandconstructionoftheelectricitySubstationsandTransmissionLines.
SWOT
Strengths Weakness
ThreatsOpportunities
• Stable regulation;• Predictable revenue;• No volume risk;• Minimal credit risk;• Lower risks of the energy sector;• Experienced management team;• High level of commitment among all hierarchical levels; • Strong culture of resource management;
• Incorporation of CIP into the IMS;• Strong shareholders and excellent local partnership with Copel;• Existing project portfolio is suitable for synergies;• Access to and familiarity with BNDES financing;• Infrastructure available;• Financial Solvency;
• International capital costs; • Investments via financial meritocracy limited business to business;• Weak economies of scale due to the smaller portfolio of projects;• Absence of a personnel retention program;
• Need to optimize some control tools;• Limited spread of strategic vision across all levels of the organization;
• Favorable conditions for investments in the country;• Expectation for strong expansion of new projects;• New Reinforcements;• M & A - third party projects;• New funding alternatives;• Possibility of refinancing of operational projects;
• Tax breaks;• Diversification in New Businesses;• Strengthening engagement with stakeholders;• Development of R&D Projects;
• Fraud and Corruption;• Increase in the Competitiveness of Auctions;• Stricter legal requirements;• Political instability;• Extreme weather events;
Risk Management
Global Business Risks Process RisksClassed as Oriented by Risks
with impacts on
Financial
Strategic
Operational
Based on achievingthe mission
SustainabilityReport
Health and Safety
The Environment
Quality AnnualManagement Plans
Managed by those responsible for the
environmental, health and safety and quality
areas
Celeo Redes Brasil52 Sustainability Report • 2017 Celeo Redes Brasil 53Sustainability Report • 2017
Business Risks
Process Risks
Integrated Management CELEO’sinternalmanagement
combinestheguidelinesofthe
IntegratedQuality,Environmental
andOccupationalHealthand
SafetyManagementPolicywiththe
CorporateIntegrityProgram.
Thelasttwoyearsrepresent
amilestoneforthecompany
withtherestructuringprocess
ofthemanagementmodel,
whichestablishesthereviewand
reformulationofprocedures;the
creationandrevisionofpolicies;
thecreationofnewareas;hiring
ofnewprofessionals;andinternal
promotions.
Managementstandardswerealso
definedforthisareaandcover
ethicalandsocio-environmental
aspectstoguidethequalification
ofsuppliersandtheprocurement
ofequipmentandmaterials,as
wellasthecontractingofservice
providers.Thesechangesapply
totheheadquartersofficeinRio
deJaneiro,theoperationand
maintenanceservicebasesin
Uberlândia(MG),ViladoConde
(PA)andImbirussu(MS)andits
substationsandtransmissionlines
geographicallyspreadthroughout
thecountry.
CELEOalsoimplementedthe
IntegratedManagementSystem-
basedontheISO9001,ISO14001
andOHSAS18001standards-which
wassubjectedtointernalaudit
withtheobjectiveofcontinuous
improvementofitsactivities.IMS
planningandimplementation
activitiestookplacethroughout
2016and2017.In2018the
processesandproceduresare
duetobereviewedandimproved
sothatIMScertificationcanbe
achievedbytheendoftheyear.
21 professionals trained in the IMS:• 12employeesreceived
IMSAudidorTraining
(ISO9001,ISO14001
andOSHAS18001)
• 9employeestrained
inApproachtothe
Standards(auditing
oftheSenior
Management)
Financial RisksRisks and impacts of fluctuationsin the financial market
CreditLiquidityVariations ininterest rates
Strategic RisksChanges in the energy secto(regulatory and strategic agreements)
Regulatory ChangesCompliance, Corruption, FraudContractual Disputes
Operational RisksProvision of services and legalobligations
Unavailability of FacilitiesSocial ImpactQualityEnvironmental ImpactSafety, Health and Well-Being og Workers
Variations in the IPCAExchange Rates
Environmental Risks Classifiied by Severity, Influence and FrequencyEnvironmental Aspects and Impacts Methodology - LAIA
Occupational Healthand Safety Risks
Classified by Frequency and SeverityDangers and Risks Methodology
Quality Integrated Management System – IMS IMS Committee
Celeo Redes Brasil54 Sustainability Report • 2017 Celeo Redes Brasil 55Sustainability Report • 2017
General Principals of the IMS
Footnote
CeleoRedesBrasilhasestablished
principlesthatshouldguidethe
Company‘sperformanceintheareas
ofQuality,theEnvironmentand
OccupationalHealthandSafety.
Thiscommitmentshouldprovide
areferenceforthedefinitionand
revisionofthegoalsthatseek
thecontinuousimprovementand
effectivenessoftheIntegrated
ManagementSystem.
TheIMSprinciplesare:
• Preventdamagetothehealth
andsafetyofemployees;
• Considerenvironmentaland
socialaspects,mitigating
andoffsettingimpactsonthe
surroundings;
• Guidetheorganizationinthe
analysisofprocessesandrisks,
promotingimprovements
thatfavorthesustainabilityof
investments;
• ImplementaGoodCorporate
Governancepolicy,fostering
transparencyandStakeholder
satisfactioninitsrelationships;
• Complywithapplicable
currentlegislationandother
requirementssubscribedby
CeleoNetworksBrazilinallthe
marketsinwhichitparticipates;
and
• Providetheresourcesnecessary
fortheimplementationofthis
IntegratedManagementPolicy.
Increase customer satisfaction by promoting quality and continuous improvement of processes.
Put in place a Corporate integrity Policy to foster transparency of information and good conduct practices.
Mitigate and control our risks, especially the risk of electric shock and working at height. Promote injury and illness prevention and improve the operational health and safety condiditons for our employees and partners.
Conduct our activities with consideration for the environment, mitigating our impacts, especially with regards to oils leaks and waste management.
Consider economic, social and environmental factors in our business management, in order to grow sustainably.
In pursuit of excellence in the services of operations and maintenance of transmission lines and electricity substations, Celeo Redes Brasil is commited to the constant improvement of its integrated management system and meeting legal and other requirements, as well as;
Celeo Redes Brasil 57Sustainability Report • 2017Celeo Redes Brasil56 Sustainability Report • 2017
Professional HiringIMS Authorized
SpecializedConsultancy BVIMS Processes
and Procedures
Specialized Consultancy HGBImplementation
of IMS
1st Audit Internal
Training - Focal Points ISSO Standards
Training of InternalAuditors IMS
Review andImplementation
of IMS Documents
Handling ofNon-compliance
Action Plan(total: 55)
Identification andAnalysis ~ 540 Legal
requirements (standards)
Review and Approval215 IMS documents
Critical AnalysisSenior Management
2nd AuditInterna
Pre-AuditAENOR
Certification Audit AENOR
Possible Adjustments(deadline)
AENOR Certification
1º quar/2016 2016 May - Dec/2016
2017 until Apr/2018 Aug-Sep/2017 Sep - Dec/2017
Feb/18 Apr/18 Jul/2018 Sep/2018 Dec/2018
Celeo Redes Brasil58 Sustainability Report • 2017 Celeo Redes Brasil 59Sustainability Report • 2017
Economic-financial
The economic-financial performance demonstrates the solidity of CELEO’s business, which has attracted new investments for its projects and developments. The Company seeks to invest in projects and initiatives that add value to its assets.
FinancialPerformanceCELEOisunwaveringinits
commitmenttolong-term
investmentinthecountry.In2017,
totalinvestmentsinthecountry
(ex-equivalents)reachedBRL3.7
billion,anincreaseofBRL795
millioncomparedto2015.The
investmentsmadewerefinanced
withthedividendsreceivedthrough
itsconcessionairesandshort-
termloans,tocomplementthe
contributionofcapitalcommittedin
theinvestmentplans.
TheConsumerPriceIndex(IPCA)
andtheLong-TermInterest
Rate(TJLP)indexesarethemain
economicindicatorsthathave
animpactontheeconomic
andfinancialperformanceof
CeleoRedesBrasilS/A(CELEO).
Contractually,inthetransmission
segmentthePermittedAnnual
Revenue(RAP)isadjustedbythe
IPCA,andtheservicingoflong-
termdebt(indexedtotheTJLP)
isadjustedbytheinterestratefor
long-terminvestments.Thepolicyof
controllinginflationbymaintaining
realinterestratesatahighlevelhas
hadapositiveeffectoncontrolling
inflation-reducingIPCAtosingle
figures-buthasreversedtheTJLP
bias,whichremainedbelowthe
IPCAvariation.Inthelasttwoyears,
theTJLPhadrecordedrealvariation
abovetheIPCA,withadirectimpact
ontheincreasingcostofservicing
debtforCELEO’sconcessionaires.
Economic Scenario
Summary Table - Celeo Redes Brasil S/AShareholding CriteriaBy Equity Equivalence
BRL Thousands
2,857
2,170
1,377
376
217
170
172
Amount of Investments
Total Assets
Net Equity
Net Debt
Net Operating Revenue
EBITDA
Net Profit
2015 20172016 Comments
3,196
2,294
1,452
377
232
167
99
3,652
2,326
1,517
328
195
123
86
ANEEL Investment
Consolidated shareholding
Consolidated shareholding
Consolidated shareholding
Consolidated shareholding
Consolidated shareholding
Consolidated shareholding
78.7%% Margem EBITDA 72.2% 63.1%
Net operating revenuein millions (BRL)
EBITDA
Investment in Brazilin billions (BRL)
2016
2016
2016
2015
276
2,9
283
3,2
3,7
2017
2017
inmillions(BRL)
2017
167123
211 211
IPCA & TJLP ( ex-IPCA) % year
2016
6.29%
2017
IPCA
TJLP2.95%
2015
10.67%
3.94%1.14%
-3.32%
Source:AuditedFinancialStatements-CeleoRedesBrasilS/A
Source:BancoCentraldoBrasil
232
195
NetRevenue
AdjustedNetRevenue
EBTIDA
EBTIDAadjusted
NetRevenue
AdjustedNetRevenue
GRI 201-1
Celeo Redes Brasil60 Celeo Redes Brasil 61Sustainability Report • 2017Sustainability Report • 2017
In2017,CELEO‘sconsolidatednet
revenuewasBRL195million,afallof
16%onthepreviousyear.Thisresult
wasdrivenbytheeffectofafallin
theconsumerpriceindex(IPCA)on
incomefromtheconcession‘sfinancial
assets,anintegralpartofnetincome.
ExcludingtheeffectoftheIPCAon
incomefromtheremunerationof
financialassets,netrevenuereached
BRL283million,reflectinga2.5%
increaseontheadjustedbaseof2016.
EBITDAreachedBRL123million,down
26%onthepreviousyear.Excluding
theeffectofinflationonincome
fromfinancialremuneration,EBITDA
increasedtoBRL211million,remaining
atthesameadjustedlevelasin2016.
Value-AddedDistribution(VAD)
totaledBRL131million,distributed
asfollows:12%government;45%
employees;33%shareholders;and
10%thirdparties.
Financial and Economic Results
TheCompany‘sdebtcapacityis
limitedasaresultofthelong-term
agreementsenteredintobythe
concessionaireswiththeBrazilian
DevelopmentBank(BNDES),which
establishesrestrictiverulesonthe
sharingofguaranteeswithother
sourcesoffinance.Fundraising
bytheholdingcompanyismainly
determinedbytheexpectationof
thereceiptofdividendsfromits
concessionaires,whichconstitute
themainguaranteesfornew
financing,especiallyinthemedium
andshort-term.
CELEOmanagesitsassetsthrough
contractsforoperationsand
maintenancemanagement,aswell
asadministrativeserviceswith
itsrespectiveconcessionaires.
TheholdingcompanyusesERP
(EnterpriseResourcePlanning)
software,whichenablesthe
integrationofsupplymanagement
withtheAccounting,Financialand
Taxareas.
TheCompanyhasconsolidatedits
positionasamajorplayerinthe
electricitytransmissionmarket.In
2017,itdisbursedmorethan90%of
theloansreceivedfromBNDESfor
theCANTAREIRAproject,whichisin
theconstructionphase,representing
asuccessfulcaseintermsofthe
speedinthedisbursementprocess.
CELEOhasalsoaddednew
sourcesofcomplementaryfunding
fortransmissioninvestments.In
2017,thebookkeepingforthe
infrastructuredebenturesof
theCANTAREIRAprojectwas
completed,whichtriggeredstrong
demandfrominstitutionalinvestors
foracquisitionofthebonds
offeredbytheconcessionaireon
theSãoPauloStockExchange
(BM&FBOVESPA-B3).Itisalso
worthmentioningthatthisproject
obtainedAA+certificationfromthe
InternationalCreditRatingAgency
FitchRatings.
Indebtedness Asset Management
Diversification of access to financial capital
Theincreasedparticipation
ofLong-TermInterestRates
(TJLP)infinancing-bynine
percentagepoints-isrelatedto
thedisbursementoffinancingfor
theCANTAREIRAproject,fully
indexedtotheTJLP.Theincreasein
participationinforeigncurrencyis
relatedtothecontractingofaloan
witharelatedpartyabroadforthe
dischargeoffinancingcontractedin
2016,whichguaranteedthefunds
neededtocompletethecapital
contributioncommittedtothe
CANTAREIRAproject.
Thegraphbelowshowsthe
evolutionofCeleoRedesBrasil’s
netdebtinaccordancewiththe
auditedconsolidatedcriteriaofthe
companiesinwhichitholds100%
equityinterest.Attheendof2017,
theCompany‘sdebt(netofcashand
cashequivalents)totaledBRL328
million,representingareduction
ofBRL49millionasaresultofthe
constantamortizationsystem,which
presentsareductionofthedebt,
accordingtothedegreeofmaturity
oftheconcessionaires.
Net Debt in millions (BRL)
2016 377
3282017
2016 2017
TJLP82,4%
TJLP73%
PSI 7%
USD 5%
CDI 12%
IPCA 3%
PSI 5%
USD 10%
CDI 0%IPCA 3%
Source:AuditedFinancialStatements-CeleoRedesBrasilS/A
Celeo Redes Brasil62 Celeo Redes Brasil 63Sustainability Report • 2017Sustainability Report • 2017
Thetransmissionsegmentwasoneof
themajorhighlightsoftheelectricity
sectorin2017,demonstratingdynamic
tendenciesdespitethetroubled
scenariointhesectorsincetheedition
ofProvisionalMeasure579in2012.
Aftergoingthroughaperiodofscarce
resources,thesegmentattractednew
investors,includinginvestmentfund
managers,energygenerationand
distributioncompanies,andmedium-
andsmall-scaleconstructioncompanies.
Inaddition,privatecompaniestookon
theroleofprotagonistsintransmission
auctions,previouslydominatedbystate-
ownedcompanies.
Theinvestmentsplannedforthecoming
yearsfortheexpansionoftheBrazilian
electricitytransmissionnetworkhave
awakenedtheinterestofthelargest
globalagentsinthesector.Thisappetite
isexplainedbythreemainfactors:
• Improvedremunerationfromthe
projects;
• Flexibilityoffinancingconditions;
and
• Longertermsfortheconstruction
oftransmissionfacilities,which
reducesrisks.
The2017auctionsheldinApriland
Decemberweremarkedbyintense
competitionbetweenprivateinvestors
(traditionalandnewentrants),the
absenceofstate-ownedcompaniesand
theentryofsmallandmedium-sized
constructioncompanies.Somelarge
playerswithregulatoryproblemsare
seekingalternativesthroughtheMarket
inMergersandAcquisitions(M&A).
Itisworthmentioningthatinrecent
yearsanumberofimportantprojectsdid
nottakeoff,whichispartlyexplainedby
verylargediscountsandmaybecome
acauseforconcern,requiringextra
attentiononthepartoftheregulator
withrelationtothemonitoringof
constructionworks.
Inthiscontext,CELEOhasstoodoutfor
makingsolidandstructuredinvestments
toachievechallengingtargets.This
year,theCompanycompletedprojects
beforetheregulatorydeadline,
increaseditsmanagementcapacity,
establishednewpartnershipsand
openedupnewsourcesofinvestment
foritsprojects.
Investments and New Business Participation
in Auctions• CeleoRedesBrasilwonthebidding
forlot2ofAuctionn.02/2017,held
bytheBrazilianElectricityRegulatory
Agency(ANEEL)attheheadquarters
oftheSãoPauloStockExchange.The
projectforeseestheconstructionof
transmissionlinesandsubstations
inthestatesofPiauíandCeará.
AccordingtoANEEL,investmentsof
theorderofBRL1.042billionwillbe
requiredandoperationsshouldbegin
in2023.
• CELEOparticipatedintheA-4/2017
Auction,whichrepresentedan
importantstepinthediversificationof
itsactivitiesinBrazil.Theshareholders
authorized-forthefirsttimeinthe
historyoftheCompany-participation
inamajorchallengeintheformof
contractingphotovoltaicsolarenergy.
Theprojectiscalled„SãoJoãodo
Piauí“andconsistsofsixphotovoltaic
plantslocatedinthestateofPiauí,
providingacombined209MWpunder
thegreenfieldmodality.
Celeo Redes Brasil 65Sustainability Report • 2017Celeo Redes Brasil64 Sustainability Report • 2017
Celeo Redes Brasil66 Sustainability Report • 2017 Celeo Redes Brasil 67Sustainability Report • 2017
Operational Results have been appearing in increasingly significant numbers for the transmission sector. CELEO once again ranked as one of the best in the year.
2016
99.99%
2017
99.99%
2015
92.77%
2016
99.87%
2017
99.88%
2015
99.80%
2016
99.94%
2017
99.95%
2015
99.90%
2016
100%
2017
99.99%
2015
99.99%100%
99%
98%
97%
96%
95%
94%
93%
92%
91%
90%
Availability (%)
TransmissionLine Transformer Reactor StaticCompensators
Celeo Redes Brasil68 Sustainability Report • 2017 Celeo Redes Brasil 69Sustainability Report • 2017
CeleoRedesBrasiliscommitted
totheoperationalefficiencyofits
transmissionfacilities,ensuring
highlevelsofavailability,excellence
inoperationalcapacityand
competitiveregulatoryoperating
costs.AccordingtoTechnical
NoteNo.164/2017-SRM/ANEEL
of04/10/2017,theCompany
isrecognizedbytheBrazilian
ElectricityRegulatoryAgency
(ANEEL)asaBenchmarkinthe
OperationalEfficiencyRankings,
positionedin:
•1stplace:2015and2016
•3rdplace:2014
•8thplace:2013
Inordertoachievethese
parameters,thecompanymustcarry
outthemaintenancerequiredby
ANEEL’sNormativeResolutionNo.
669/2015-whichestablishesthe
minimummaintenancerequirements
fortheBasicNetwork(CELEOhas
setatargettocomply100%)–and
alsoperformsotherpreventive
andpredictivemaintenancethatit
considersessentialfortheuseful
lifetimeofitsequipment.
Thesubsidiariesproduce
operationalreportsonaday-
to-daybasis(whichresultin
safetyinspections)anddraw
upinterventionplans,with
investmentsinreinforcementand/
orimprovementprojectsand
operationalprojects.Maintenance
Plansaremanagedthroughspecific
indicators,whichcomplywith
theregulationsoftheregulator.
Anylong-termmaintenanceis
coordinatedwiththeexternal
agents(NationalSystemOperator,
generators,distributorsandother
transmissioncompanies).
Oneexampleofimprovementsto
thesystemisthe500kVAçailândia/
Miranda2TransmissionLine,where
thereweresuccessiveshutdowns
in2015causedbypollutionin
theinsulatorchains.From2016,a
methodwasdevelopedtoclean
theinsulatorswiththeTransmission
Linestillactive,inordertoavoiding
causingunavailabilityofthis
transmissionfunction.Withthe
monitoring,inspectionandcleaning
oftheinsulatorstherewerenonew
shutdownsinthelasttwoyears.
Inaddition,maintenancetothe
CoqueirosTransmissoradeEnergia
Concession(CTE)scheduledfor
2017wasextendedto2018,atthe
requestofthegeneratorsofthe
region.
Main Operational IndicatorsAvailability of the facilities TocalculateAvailability,thenumber
ofhoursthattheequipmentin
questionortheTransmissionLine
circuitisavailableisconsidered.
InthecaseofTransmissionLines,
availabilityiscalculatedforeach
100kmofline.Ingeneral,the
AvailabilityofCELEO’sTransmission
Functions(TF)areatexcellentlevels
ofabove99.80%.
GR4-EU28, G4-EU29
TheFailureRate(FR)iscalculated
fromthenumberoffailuresin
equipmentortheTransmissionLine
circuit.Inthecaseofequipment,
theindicatorrepresentsthe
forcedshutdownsthatoccurred
intheTransmissionFunctions.
ForTransmissionLines,theFRis
calculatedforeach100kmofline.
Therefore,theindicatorforFR
representsthenumberoffailures
occurringin100kmduringtheyear.
CELEOisremuneratedthroughthe
PermittedAnnualRevenue(RAP).
Thepaymentof100%ofRAPis
linkedtothefullavailabilityof
transmissionfacilities.TheVariable
Portion(PV)istheportiontobe
deductedfromtheBasePayment-a
figurerepresenting1/12oftheRAP
-forscheduledshutdownsorother
shutdownsthatresultfromevents
involvingthemainequipmentand/
orcomplementaryequipmentof
theTransmissionFunctionunderthe
responsibilityofthetransmission
concessionaire.
TheCompanycouldseeits
RAPreducedbyoneVariable
Portion(PV)duetotheeffective
availabilityofitsfacilities.Thisis
aresultofNormativeResolution
No.729/2016-ANEELofJuly1,
2016,whichestablishesprovisions
regardingthequalityofthepublic
electricitytransmissionservice
andincludesnewrulesforthe
applicationofthePV.Theseapply
totheavailabilityandoperational
capacityofthefacilitiesunderthe
responsibilityoftheconcessionaires
ofthetransmissionnetworksofthe
BasicNetwork.Severalcriteriafor
determiningPVwerechangedin
relationtothepreviousresolution-
RNNo.270/2007-impactingonthe
revenueofTransmissioncompanies.
The2016PV/RAPRatio(2.26%)was
directlyimpactedbytwoexplosions
thatoccurredincurrenttransformers
atSETucuruí.Consideringthat
thesecurrenttransformerfailures
havealsooccurredwithother
transmissionagents,theElectricity
SectorMonitoringCommittee
(CMSE)decidededatits178th
meetingon03/08/17thatthe
NationalSystemOperator(ONS)
wouldcoordinateanalysisofthe
explosionsofCurrentTransformers
(CTs)intheNationalInterconnected
System(SIN).Theaimistotryto
identifyspecificproblemsoccurring
incertaingroupsofequipment
andassesshowtoreplacethem
soastopreservethesecurity
oftheoperationoftheBrazilian
ElectricSystem.Aftertheprocess
ofinvestigationofthecauses,
CELEOunderstandsthatthereis
apossibilityofreversionofthe
lossofearningsasaresultofthe
applicationofthePV.
Asapreventivemeasure,the
replacementofthetransformers
wasincludedintheFacilities
ImprovementProgram.In2017,the
resultreturnedtonormalat0.58%.
Failure Rate Variable Portion
2016
2.40%
2017
3.67%
2015
4.88%
2016
3.31%
2017
4.37%
2015
5.55%
2016
4.30%
2017
5.13%
2015
6.27%
10
9
8
7
6
5
4
3
2
1
0
Failure Rate - TL
2016
0.00%
2017
0.00%
2015
0.00%
2016
0.08%
2017
0.27%
2015
0.50%
2016
1.50%
2017
1.51%
2015
0.50%
5,0
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
Failure Rate - Equipment
PV/RAP Ratio (%)
20162015 2017
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
0.58% 0.58%
2.26%
TLOverall TL-500kV TL-230kV
Transformers Reactors StaticCompensators
Celeo Redes Brasil70 Sustainability Report • 2017 Celeo Redes Brasil 71Sustainability Report • 2017
Since2012CELEOhasinternalized
operationsandmaintenanceactivities,
whichwerepreviouslyperformedby
contractors.Theinternalizationof
theseactivitieshasensuredgreater
reliability,optimizationofresources
andretentionoftechnicalknowledge,
withtheaimofprovidingoperational
efficiency.
CeleoRedesBrasilhasdedicated
itseffortstoimprovingitsprocesses
throughtheimplementationofIT
systems,includingtheuseofmobile
devicestocarryoutmaintenance
activities,asystemfordocument
managementandtheIntranet,which
allowsrapidanalysisofindicators
andreports,aswellasconcentrating
additionalmaintenanceandoperation
toolsinAdvancedAssetManagement
(AAM).Someexamplesofthe
toolsusedare:ControlofIncidents
andDefects;DailyOperational
Reports;requestsforinterventions;
serviceorders;maintenanceplans;
abnormalitiesandunresolvedissuesin
theassets;amongothers.
Tocontinuewiththisprocessthe
Companyhasmadecommitments
for2018relatedtothecreationof
newsolutions,withthepurposeof
providingspeedandefficiencyin
theexecutionandmanagement
ofprocesses.Thesesolutionswill
focusonriskmanagementandthe
performanceofsustainabilityaspects
usingdataanalysisandthegeneration
ofreportsandindicators.
Operational Efficiency GRI EU6
Responding to Emergencies
Inemergencysituationssuchas
failuresatitsfacilities,CELEOhas
ContingencyPlansinplaceforits
mainactivities.ThePlanscontain
theactionsnecessarytorestore
theaffectedfacilitiestonormal
operations,therebycontributing
todecreasingtheunavailabilityof
thefacilitiesaswellastosystemic
reliability.
Periodictrainingsessionsand
simulationofemergencysituations
arecarriedout,inaccordance
withthecontentoftheinternal
procedures.Theseprocedures
describetheprocessesand
responsibilitiesofeachareaof
CELEOtoassistintherecovery/
restoralprocess,aswellasdetailed
informationonthecharacteristics
oftheareaorsystemsinvolved.
Theaimistotrain,organize,
guide,facilitate,streamlineand
standardizeactions.
GRI EU21
Celeo Redes Brasil 73Sustainability Report • 2017Celeo Redes Brasil72 Sustainability Report • 2017
Uberlândia Maintenance BaseTheUberlândia(MG)Maintenance
Baseprovidesspecializedsupport
forthemaintenanceandtraining
oftheotherregionaloffices,due
toitsstrategiclocation,which
facilitatestheaccessofemployees
totransportlinksandfacilitates
logistics.Thefollowingactivitiesare
locatedatthebase:
• SupportforProtectionand
Control;
• SupportforEquipment;
• Supportfor
Telecommunications;
• Trainingcenter;
• BackupOperatingCenter/
COS-Backup,usedincases
ofcontingencytoavoid
discontinuityofoperations.
ThemainfeaturesinplaceatCELEOinclude:
Operations and Maintenance (O&M) Strategy
• Centralizedoperations-Center
ofOperationsfortheCeleo
RedesSystem(COS–CELEO);
• Networks(remote-controlled
installations);
• Tele-assistedinstallations-the
substationshavetwocertified
operators,duringbusiness
hoursandoncall;
• Connectivity-corporate
communicationchannels
forsharingtechnical/
documentationresources,
remoteaccesstodigital
equipmentandvoice
communication;
• Continuousimprovement-
investmentsinsupportsystems
foroperationsandmaintenance
toprovidegreateroperational
safetyatthefacilities.The
investmentispaidforbythe
companyitselfandbythe
ConcessionsResearchand
DevelopmentProgram;
• Concentrationoftheteams-
MaintenanceBaseinUberlândia
andregionalmaintenance
offices.
Celeo Redes Brasil74 Sustainability Report • 2017 Celeo Redes Brasil 75Sustainability Report • 2017
• InitialInvestmentProjects:
arecontractedthrough
TransmissionAuctionsandare
necessaryfortheexpansion
ofthenationalenergy
transmissionsystem;
• ReinforcementProjects:
areauthorizedbyANEEL
throughAuthorizing
Resolutionswiththeaim
ofincreasingtransmission
capacity,thereliabilityof
theNationalInterconnected
Systemandtheusefullife
ofequipmentthroughthe
installation/replacement
ofassets,refurbishments
andadjustmentstoexisting
facilities;
• Improvementprojects:are
indicatedannuallybyCELEO
totheNationalSystem
Operator,toimprovethe
facilitiesoftheconcessionsin
operation;
• OperationalProjects:are
identifiedanddevelopedby
CELEOtomakeoperational
improvementstoprocesses
notconsideredinthe
regulatedprojects;
• ResearchandDevelopment
(R&D)projects:thesefollow
regulatoryobligationsfor
investmentinresearchand
developmenttopromote
acultureofinnovationand
stimulateresearchand
developmentintheBrazilian
electricsector.
Construction of the 500 kVEstreito - Fernão Dias Transmission Line InDecember2017,CELEO
completedconstructionofthe
500kVEstreito-FernãoDias
TransmissionLine,extending
for342kmbetweenthestates
ofMinasGeraisandSãoPaulo.
Thisisanimportantachievement
fortheCompanygiventhat
theenterprisebelongingto
CantareiraTransmissorade
EnergiaS.A.(CANTAREIRA)is
expectedtobeginoperations
wellinadvanceofthedeadline
setintheConcessionAgreement.
Theprojectisconsideredto
bestrategicfortheBrazilian
ElectricSectorasitispart
oftheTransmissionSystem
thatwillenabletheoutflowof
energyfromtheBeloMonte
HydroelectricPlant(11,233MW),
thethirdlargesthydroelectric
plantintheworld(capacityto
serve60millionpeople)after
theThreeGorgesDaminChina
(20,300MW)andtheBrazilian/
ParaguayanItaipu(14,000MW).
Developmentsand ProjectsBasedontheannualstrategic
planning,CeleoRedesBrasil
definestheinvestmentsandgoals
forgrowthandimprovementof
theconcessionsthatitcontrols.In
2017,theseinvestmentsrepresented
approximatelyBRL433million
among27projects.
Ofthetotalamountinvested,86%
wasearmarkedforinitialinvestment,
12%forReinforcementprojects,
1%forR&Dprojects,0.5%for
Improvementprojectsand0.5%for
OperationalEfficiency.Itshouldbe
notedthattheReinforcementand
Improvementprojectsareregulated
byANEELNormativeResolution
643/14.
Celeo Redes Brasil76 Sustainability Report • 2017 Celeo Redes Brasil 77Sustainability Report • 2017
Reinforcement Projects
Someofthereinforcementprojects
thatwereimplementedduringthe
yeardeserveaspecialmention.In
January2017,theReinforcementof
theLinhadeTransmissãoCorumbá
(LTC)becamecommercially
operational,withtheinstallation
ofa230kVbarreactorand
associatedmodulesattheCorumbá
2Substation.Thefunctionofthis
Reinforcementistoassistinvoltage
controlforthesystemintheregion.
Inthefollowingmonth,the
Reinforcementimplementedby
BrilhanteTransmissoradeEnergiaSA
(BTE)alsobecameoperational,with
therelocationofa230kVreactor
fromtheImbirussúsubstationto
theCampoGrande2substation.
Theprojecttoadaptthe230kV
Chapadão-Imbirussútransmission
linewascompletedonschedule.
ThereinforcementworkatJauru
TransmissoradeEnergia(JTE)was
alsocompleted,withtheinstallation
oftwo230kV110MVArseries
capacitorbanksatthe230kV
Vilhena/JauruTransmissionLine
terminalsC1andC2attheSEVilhena
substation.Commercialoperations
beganinNovember,alsoinadvance
ofthedeadlineestablishedinthe
AuthorizingResolution.
Alsoin2017,reinforcementwork
beganatPedrasTransmissorade
Energia(PTE),withtheinstallation
ofathirdbankof345-138kV3x133
MVAautotransformersintheVenda
dasPedrasSubstation.
Research, Development and Innovation (P&D+I)Withaviewtopromotingacultureof
innovationinthesectorandstimulated
bytheNationalElectricityRegularory
Agency(ANEEL),CELEOinvestsin
researchanddevelopmentprojects
withincentivesforthecreationofnew
equipment,refinementofservices
toimprovethesafetyofitsproduct,
tariffreduction,reductionofthe
environmentalimpactofthesectorand
thetechnologicaldependenceofthe
country.In2017,investmentinR&D
projectstotaledBRL3.7million.
Thesearesomeoftheprojectsthatare
currentlyongoing:
Project:“InnovativeSolutionfor
SupervisionofTransmissionLines
IncludingNon-Conventional
MonitoringDevicesandAutomated
ResultsAnalysis“utilizestechnology
formonitoringandanalysisofresults
ontheTransmissionLines.
Duration:01/04/2016to31/08/2018Total Investment:BRL2.7millionAmount invested in 2017: BRL1.7million
Participation: VCTE,CTE,PTE,LTC,ENTEandLTT
Project:“DevicetoAdaptRelay
TestingEquipmenttoSampledValues
Technology“permitstheadaptation
oftestboxesthatgenerateanalog
signalssothattheycancreatedigital
signals(sampledvalues),accordingto
normIEC61850.
Duration: 01/04/2016to31/06/2018Total Investment: BRL2.7millionAmount invested in 2017: BRL1.4million
Participation:VCTE,CTE,PTE,LTC,ENTE,LTT,IMTEandCAIUÁ
Project:“ApplicationandAssessment
ofNewTechnologiestoImprovethe
PerformanceofTransmissionLines
InstalledinExtremelyInhospitable
ConditionsAgainstLightningStrikes“,
withtheobjectiveofimprovingthe
performanceofthelinesofthe230kV
Vilhena-JauruTransmissionLine,which
crossesaregionofintenseelectric
activitywithhighresistivitysoil.
Duration: 29/12/2016to29/12/2019Total Investment:BRL3.2millionAmount invested in 2017: BRL575,228.20
Participation: JTE
GRI EU8
Celeo Redes Brasil78 Sustainability Report • 2017 Celeo Redes Brasil 79Sustainability Report • 2017
Social Celeo Redes Brasil has adopted a strategy of looking within, valuing its employees during times of change. From now on, results are a consequence of teamwork and efficient management.
Celeo Redes Brasil80 Sustainability Report • 2017 Celeo Redes Brasil 81Sustainability Report • 2017
CELEOrecognizestheimportanceof
peopleforitsbusinessandseeksona
dailybasistobuildenvironmentsthat
areconducivetothedevelopment,
safetyandwell-beingofits
employees,contractorsandservice
providers,aswellasthepopulation
closetoitsenterprises.
InthelasttwoyearsCeleo
NetworksBrazilhasimplemented
ashakeupofthemanagementof
socialaspects,mainlyinrelationto
employees.TheHumanResources
areamadesignificantchanges
withthesystematizationofinternal
processesforpeoplemanagement,
re-adaptationoffunctionalcategories
andconsequentlychangestothe
employeeframework.Theseinitiatives
haveimpactedontheoutcomesofthe
indicators,whichwillbemonitoredin
thecomingyearsinsearchofongoing
improvement.
TheHealthandSafetyareaalsosaw
changestoitsmanagementand
fromnextyearwillbedirectlylinked
totheExecutiveDirector,whowill
followtheevolutionoftheindicators
closely.Withregardtocontractors,the
Companyintensifiedtheassessment
andqualificationprocessforsuppliers,
withthemonitoringofcontracts
andtheactivitiescarriedoutinits
operations.
Inthecommunities,inadditionto
socialprojectsalreadydeveloped
withtheparticipationofthe
residents,CELEOhasintensifiedthe
engagementprogramtosurveythe
needsandopinionsofthepopulation
withregardstotheimpactsofthe
business.Thiswillbeusedtoestablish
actionplanstomitigatethenegative
impactsandenhancethepositives.
Profile of the EmployeesGRI 102-8, 102-36, 401-1, 404-3
CELEO’steamsaremadeupof
professionalsofdifferentagesand
occupationalexperience.Inthe
selectionprocessandincareer
developmentCELEOappliesthe
criteriaofnon-discriminationand
equalopportunities,inaccordance
withtheCodeofEthicsandConduct.
Withtherestructuringprocessat
CeleoRedesBrasil,theCompany
recognizestheopportunitytoimprove
onimportanthumanresources
issues.Inthelastyearthefunctional
categorieswereredesigned,
resultinginsignificantchangestothe
frameworkandaffectedthepeople
managementindicators.Today,
thereare230employees,including
19%women,themajorityworkingin
administrativeactivities.Theturnover
ratereached23.70%,with56hirings
and53redundancies,including
fiveinternalmovementsinwhich
employeesweremaderedundantand
rehiredbyotherCELEOconcessions.
AttheendoftheyeartheCompany
had17vacanciesstilltobefilled.
AspartoftheprocesstheCompany
isalsostudyingtheimplementation
ofremunerationpoliciesforalllevels,
sincesalariesarecurrentlydefinedby
theHumanResourcesDepartment
accordingtoprofessionalexperience,
technicalknowledgeandbehavioral
profile.In2017,theprocessofcreating
jobdescriptionsbeganwiththe
considerationoftheskillsandabilities
requiredforeachfunction,witha
reshuffleofemployeestooccupythe
newly-designedprofiles.Thecompany
alsobegantheprocessofcreating
atoolforperformanceassessment,
whichwillbeimplementedin2018.
Personnelmanagementisconducted
usingthetheRMLaboresystemto
controlemployees‘informationand
thepayroll.Inaddition,theHuman
Resourcesdepartmentreports
monthlyresultsregardingnewhiresto
theheadquartersinSpain
Employee hiring rate (%)
Employee turnover rate (%)
414
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
771
8.413.69
1.52
110
Gender
womenmen
510
6.716.9
Number of new employee hires
1813
5
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
1620
3
2134
1
1026
Gender
womenmen
1028
1442
1811
7
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
2189
4088
503614
2015 20172016
4253
5
3860
2
2872
2674
2575
503119
552124
711414
Age Group
Under 30 years30 to 50 yearsOver 50 years
Gender
womenmen
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
Number of employees leaving the organization
714
1
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
1514
3
2030
3
319
Gender
womenmen
1220
1142
1057
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
2174
357
11
Employee hiring rate (%)
Employee turnover rate (%)
414
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
771
8.413.691.52
110
Gender
womenmen
510
6.716.9
Number of new employee hires
18135
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
16203
21341
1026
Gender
womenmen
1028
1442
18117
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
2189
4088
503614
2015 20172016
42535
38602
2872
2674
2575
503119
552124
711414
Age Group
Under 30 years30 to 50 yearsOver 50 years
Gender
womenmen
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
Number of employees leaving the organization
7141
Age Group
Under 30 years30 to 50 yearsOver 50 years
2015 20172016
15143
20303
319
Gender
womenmen
1220
1142
1057
Employees by Region
Southeast MG, RJ, SP (LTT, CELEO, CANTE, PTE)Center-West MT, MS (BTE, JTE, LTC)North (CTE, ENTE, IMTE, VCTE)
2174
357
11
Celeo Redes Brasil82 Celeo Redes Brasil 83Sustainability Report • 2017Sustainability Report • 2017
Training and Development
Awareoftheneedtodevelopits
professionals,CeleoRedesBrasil
hascreatednewstrategiesinthe
HumanResourcesareatoprovide
moreopportunitiesfortheteams.
TheCompanyseekstoofferequal
opportunitiesforqualifications
andtrainingwhilespecifically
meetingtheneedsofeach
employeeandtherebycontribute
toformingateamthatexcelsin
themarketinwhichitoperates.
In2015theEducationalSupport
Programwascreated,permitting
CELEOtomakefinancial
investmentsinundergraduate,
postgraduate,MBAand/or
languagecoursesforalldirect
employees(excepttraineesand
apprentices).In2017,theprogram
included14employeestaking
languagecourses(Englishand
Spanish);fiveonundergraduate
courses;fourtakinggraduateor
MBAcourses;andtwocompleting
highschooleducation.
Otherspecifictrainingand
qualificationmodulesincludedre-
trainingmaterialforallemployees,
theCorporateIntegrityProgram
andthereadingandinterpretation
oftheStandardsoftheIntegrated
ManagementSystemfor35
professionals.TheCompanyalso
hasspecificqualificationtraining
fortheoperatorsoftheCenterof
Operations(COS),managedfor
theOperationarea.Employees
aretrainedinpolicies,processes
andstandards,butonlybecome
eligibleandqualifiedafterpassing
theCOSexam.
Anotherimportantinvestmentwas
theconstructionoftheTraining
Tower,locatedattheUberlândia
(MG)base.Intotal,BRL257,000
wasspentontheprojectwhich
improvedthequalityofthe
trainingsessions,whichnoware
centralizedinasinglespace.
+ 95 HorasTheaveragenumberoftraining
hoursperemployeewas95.97.
+ R$767 MilIn2017,BRL767,511wasinvestedin
developmentandtrainingprograms,
totaling22,073hours.
GRI 404-1, 404-2, EU14
Program/ Training
Educational Support 84,043
Cost BRL
Health and Safety (SIPAT) 198,560
Technical training (SICAT) 85,443
Congresses, seminars and lectures 23,615
Technical Workshop (Jornada Técnica) 95,340
Internal, behavioural and regulatorytechnical training 280,510
Average number of hours of training
Employee category
ManagersAdministrativeProduction
3,6651,1957,537
2017
Gender
MenWomen
7,6284,769
2017
Obs: Does not include data for SIPAT and SICAT.
Celeo Redes Brasil84 Celeo Redes Brasil 85Sustainability Report • 2017Sustainability Report • 2017
Technical Visits between Braziland Chile
Internal Technical Training Week
Thiseventpermitsanexchangeprogram
betweenemployeesoftheBrazilianOperational
DepartmentandemployeesfromChile,withthe
aimofexchangingtechnicalexperiencebetween
theengineering,operationsandmaintenance
teams.Thisyear,theeventtookplaceinRio
deJaneiro(RJ)andUberlândia(MG),withthe
participationof54employees,11fromCeleo
RedesChileandoneemployeefromSpain.
TheCompanyholdsanInternalTechnicalTraining
Week(SICAT)everyyeartargetingtheMaintenance
andOperationsareas.Duringtheevent,training
sessionsareconductedoninternalprocedures
andgoodmanagementandoperationalsafety
procedures.In2017,inadditiontotheCELEO
employees,suppliersandrepresentativesofthe
regulator(ONS)wereinvited,bringingtogethera
totalof98employeesandsixguestsin42activities.
Benefits, Health and Well-being
CeleoRedeshasasetofbenefits
andactionsforhealthandwell-being
thataimtoimprovethequalityof
lifeofemployees.Itisimportantto
notethatallconcessionsreceivethe
samebenefits,whichareextendedto
temporaryemployees.TheCompany
providesthefollowingbenefits:
• Foodandmealvouchers;
• Transportvouchersandextra
subsidy;
• Medicalanddentalplan;
• EducationalSupport.
Toencouragehealthandwellness
activitiestheHumanResourcesarea
developedtheHealthManagement
Programinconjunctionwiththe
OccupationalHealthandSafetyarea,
lookingtoexpandpreventiveactions
amongitsemployees.
In2017thetheCompanysentout
questionnairestoitsemployees
usingacomputerizedplatformin
ordertogatherinformationabout
theirmentalandphysicalhealth,
aswellassocialinformation.The
purposeofthequestionnairewas
tohelpunderstandtheprofileof
theemployeesandproposeactions
forimprovementandsupport.This
year,58employeesparticipatedin
theinitiative.TheHumanResources
areahasbeenstrengtheningthe
campaigntoincreaseparticipation
in2018.
Monthlyreportsaresenttomonitor
theuseofthehealthcareplan.If
thefrequentuseoftheplanbyan
employeeisidentifiedahealthcare
professionalmakescontactwiththe
individualtounderstandwhatfurther
assistancecouldbeprovided.
GRI 401-2
Celeo Redes Brasil86 Celeo Redes Brasil 87Sustainability Report • 2017Sustainability Report • 2017
CeleoRedesBrasilseekstoprovide
asafeenvironmentatallofits
facilitiesandalongthetransmission
lines.Inordertoguideitsstrategies
inthisareatheCompanyhas
establishedtheIntegratedQuality,
Environment,andOccupational
HealthandSafetyManagement
Policy,whichexpresslystatesthe
assumptionsthataimtostrengthen
ahealthandsafetycultureamong
employees.Healthandsafetytopics
(training,useofPPE,dangerous
work,periodicexaminations,etc.)
arealsocoveredintheCollective
Agreementthatcoversall
employees.
CELEOhasamultidisciplinaryteam
inplaceforOccupationalHealth
andSafetymanagementthatis
dedicatedtoplanningpreventive
actionstoavoidaccidentsand
damagetopeople‘shealth.Work
procedureswereestablishedinthe
IMSforbothinternalapplicationand
workinthefield(TransmissionLines
andSubstations).Theseprocedures
guidetheperformanceofdaily
activitiesandforeseetheactions
oftheFireBrigadeandtheInternal
AccidentPreventionCommission
(CIPA).
Health and Safety
Health and Safety Indicators
GRI 403-1, 403,1, 403-4, EU16 GRI 401-2
ThecompositionoftheCIPAis
definedbyelection,withmembers
fromallhierarchicallevels-including
theSeniorManagement-to
represent100%ofemployees.In
additiontotheelectedmembers
oftheCIPA,ordinarymeetings
areattendedbyalternates,who
canactaspreventionagentsin
theareasofthecompanyand
alsostrengthentheCommission‘s
activities.Inallofthesubsidiaries
thedesignatednumberofmembers
oftheCIPAisgreaterthanrequired
inthelegislation,ensuringbroader
communicationbetweenemployees
andtheCommissionandenabling
asafetyculturetobeincreasingly
absorbedintodailyactivities.
Contractedcompaniesmustfollow
theProcurementprocedure,which
requiresandverifiescompliance
withtheOHSstandardsdefinedby
theCompany.Allcontractorsand/
orsubcontractorsparticipatein
thetrainingscheduledescribedin
theGeneralOccupationalHealth
andSafetyProcedureforVisitors
andContractors(PG-025).The
proceduredescribestheoperational
systemforcontractorsand
visitors,verifyingtheircapabilities
andcompetenciesinmeeting
occupationalhealthandsafety
andenvironmentalrequirements,
aswellastheircompliancewith
legalaspectsapplicabletothe
goodsorservicesprovided.These
trainingsessionscanoccurduring
theinductionprocessforaccessto
facilitiesorduringtheprocesses
ofselectionandassessmentof
workers.
Occupationalhealthandsafety
indicatorsaremonitoredona
monthlybasisinordertoachievethe
Company‘sgoalsandtargets.The
accidentstatisticsfollowSpanish
Standards,followingtheformulas
presentedintheindicatorsbelow.In
ordertoassessworkingconditions,
aprocedurewasestablishedfor
ManagementofNon-Conformityand
PreventiveandCorrectiveActions(PG-
007),whichdoesnotincluderesults
fromunhealthyenvironmentsorthose
predisposedtooccupationaldiseases.
Allenvironmentsaremonitored
throughtheEnvironmentalRisk
PreventionProgram,asestablished
bytheRegulatoryStandard(NR9).
Regardingthetreatmentofaccidents
atCELEO‘spremises,aGeneral
IncidentProcedure(PG-023)was
definedwithguidelinesonhow
toinvestigate,report,andhandle
incidents.Anyincidentisfollowedup
onbytheSeniorManagement,which
authorizesactionstoavoidfuture
occurrencesandtoincorporatethe
lessonslearnedintofuturetrainingand
riskanalyses.
GRI 403-2
Celeo Redes Brasil88 Celeo Redes Brasil 89Sustainability Report • 2017Sustainability Report • 2017
Alloftheactionsimplemented
havecontributedtothefallinthe
OccupationalAccidentFrequency
Rateinthelasttwoyears.However,
afatalaccidentwasrecordedat
EncruzoNovoTransmissoradeEnergia
(ENTE)for2016.Theoccurrencewas
handledbytheSeniorManagement,
whichparticipatedinallstagesofthe
investigationandmeasurestoavoid
futureoccurrences.Thesemeasures
includinginstigatingachangeinthe
organizationalstructurewithwhichthe
HealthandSafetyCoordinationwill
nowresponddirectlytotheBoardof
ExecutiveOfficersfrom2018.
Lastyearonelow-severityaccident
occurredattheCoqueiros
TransmissoradeEnergia(CTE)
operationinvolvinganemployee
cuttingthemselfafteraslightfall.
AnotheraccidentoccurredatEncruzo
NovoTransmissoradeEnergia
(ENTE),whereacollaboratorsuffered
afirst-degreeburnonthefoot.
Theoccurrenceswereinvestigated
andactionsweredefinedtoavoid
recurrence.
Induction Training
DuringtheinductionprocessallCELEOemployeesreceivethenecessaryinformationtoensuretheiroccupationalhealthandsafetyintheworkingenvironment.InUberlândia(MG),trainingisfocusedonemployeeswhoworkinOperationsandMaintenance(O&M).In2017,47peopleparticipatedintheOHSInductionontheCompany‘spremises.
TheOccupationalHealthandSafetyareaisconcernedwith:
• CorrectuseofPPE;• Integrationoftheemployeeinto
theOccupationalHealthandSafetysystem;
• Preventionofaccidentsandoccupationalillnesses;
• DisseminateoftheSafety,HealthandEnvironmentPolicy;
• Providingguidancetotheemployeewithregardstopossiblerisksintheiractivities;
• Compliancewithestablishedrules.
Health and Safety SummitEveryyear,theCIPApromotesthe
InternalOccupationalAccident
PreventionWeek(SIPAT),togetherwith
theOccupationalHealthandSafety
area.DuringSIPAT,awareness-raising
activitiesareheldwithemployees,
includinglectures,training,medical
assessments,games,etc.
TheIIISIPATofCeleoRedesBrasilwas
heldattheUberlândia(MG)base,with
theparticipationof117employees.
Inadditiontolecturesonhealthand
safety,advicewasgivenaboutthethe
healthcareanddentalplan,actionsto
promotehealthandwell-being,leisure
activitiesandraffles.
Celeo Redes Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
506,334
2.00
6,117
223
9
3.95
12.08
554,937
2.00
23.00
228.56
9
3.60
0.04
Elecnor do Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
864,171
3
23
395
8
3
0.03
3,569,504
25
582
1,332
19
7
0.16
Key:
HwNº ac
L.D
Nº.w.y (av.)
Fr
lrSr
- hours worked- number of accidents
- Lost Days
- number of workers in year (av.)
- Frequency rate
- Incidence rate- Severity rate
FrequencyRate
Nº accidents recorded *10^6Nº Hours Worked
IncidenceRate
Nº accidents recorded *10^3Nº workers in year (av.)
Nº Lost days *10^3Nº Hours Worked
SeverityRate
=
=
=
Celeo Redes Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
506,334
2.00
6,117
223
9
3.95
12.08
554,937
2.00
23.00
228.56
9
3.60
0.04
Elecnor do Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
864,171
3
23
395
8
3
0.03
3,569,504
25
582
1,332
19
7
0.16
Key:
HwNº ac
L.D
Nº.w.y (av.)
Fr
lrSr
- hours worked- number of accidents
- Lost Days
- number of workers in year (av.)
- Frequency rate
- Incidence rate- Severity rate
FrequencyRate
Nº accidents recorded *10^6Nº Hours Worked
IncidenceRate
Nº accidents recorded *10^3Nº workers in year (av.)
Nº Lost days *10^3Nº Hours Worked
SeverityRate
=
=
=
20
15
10
5
0
87
3
190.16
0.03 20172016
10
5
0
9
3.60
9
3.95
12.08
0.0420172016
Celeo Redes Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
506,334
2.00
6,117
223
9
3.95
12.08
554,937
2.00
23.00
228.56
9
3.60
0.04
Elecnor do Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
864,171
3
23
395
8
3
0.03
3,569,504
25
582
1,332
19
7
0.16
Key:
HwNº ac
L.D
Nº.w.y (av.)
Fr
lrSr
- hours worked- number of accidents
- Lost Days
- number of workers in year (av.)
- Frequency rate
- Incidence rate- Severity rate
FrequencyRate
Nº accidents recorded *10^6Nº Hours Worked
IncidenceRate
Nº accidents recorded *10^3Nº workers in year (av.)
Nº Lost days *10^3Nº Hours Worked
SeverityRate
=
=
=
15.00
10.00
5.00
0.00
li - lf lg
li - lf
0.20
0.15
0.10
0.05
0.00
lg
Subcontractors(CELEO)
CeleoRedesBrasil
Celeo Redes Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
506,334
2.00
6,117
223
9
3.95
12.08
554,937
2.00
23.00
228.56
9
3.60
0.04
Elecnor do Brasil
Hw
Nº ac
L.D
Nº.w.y (av.)
Ir
2016 2017
Fr
Sr
864,171
3
23
395
8
3
0.03
3,569,504
25
582
1,332
19
7
0.16
Key:
HwNº ac
L.D
Nº.w.y (av.)
Fr
lrSr
- hours worked- number of accidents
- Lost Days
- number of workers in year (av.)
- Frequency rate
- Incidence rate- Severity rate
FrequencyRate
Nº accidents recorded *10^6Nº Hours Worked
IncidenceRate
Nº accidents recorded *10^3Nº workers in year (av.)
Nº Lost days *10^3Nº Hours Worked
SeverityRate
=
=
=
Note:ThecalculationmethodologyusedfortheindicatorsfollowsSpanishStandardsasshownintheformulas.
2“AtthetimeofpublicationofCeleoRedesBrasil’s1stSustainabilityReport(baseyear2016)CELEOconsideredthatafatalaccidentinearly2017constituteda„relevantfact“and
insertedthisoccurrenceintotheWorkAccidentsíndices(ownemployees)fortheyear2016“.
Celeo Redes Brasil90 Celeo Redes Brasil 91Sustainability Report • 2017Sustainability Report • 2017
Suppliers
Concernedwiththeadoption
ofgoodpracticesandwith
transparencyinitsmanagement
processes,CELEOhascreateda
seriesofstandardsandprocedures
foritsSuppliesarea.The
requirementssetforthaspartof
theIntegratedManagementSystem
(IMS)includecriteriaforassessing
suppliersinrelationtolaborand
socialsecurityissues,slavelabor
andchildlabor.Thissupplier
assessmentisinlinewiththe
CorporateIntegrityProgram(CIP),
whichdeterminesdisqualification
ofthesupplierifanyoftheaboveis
identified.
TheCompanyusestheRMSystem
fortheimplementationandcontrol
ofprocurementandallsupplier
managementinvolvesthefollowing
steps:pre-registration;completion
ofthequalificationform;analysis
ofthedocumentationofthe
registeredcompany;competition
andnegotiation;selectionofthe
supplierwiththebesttechnicaland
commercialproposal;formalization
ofcontracts,monitoringofcontracts
andassessmentofthesupplier’s
performance.Throughthese
measuresCELEOseekstocomply
withtheISO9001,ISO14001and
OHSAS18001standards,aswellas
verifyingthesupplierforcompliance
withtheCorporateIntegrity
Program(PIC).
In2017,theCompanyhad1,927
activesuppliersofgoodsand
services,classifiedasCritical,
Strategic,RegulatoryandCommon.
Thevolumeofpurchases(O&M
supplies)amountedtoBRL10.8
million.
GRI 102-9
Inthelastyear,theSuppliesarea
undertookaninternalanalysisof
38ofthemaincriticalsuppliers-
oftheirsignificantsocialimpacts
(laborandsocialsecurity,
forcedorcompulsorylabor
andchildlabor)-toparticipate
inthefirstqualificationgroup,
wheretheyareassessedfor
socialriskcriteria,aswellasfor
levelsofintegrity.Asaresult
ofthisprocess,in2017CELEO
terminatedcontractswith
twocompaniesthatprovided
contractedworkers-onefor
cleaningandmaintenanceof
itsRiodeJaneiroofficeandthe
otherforpropertysecurityat
theEncruzoNovoTransmissora
deEnergiaSubstation(ENTE)
–becausebothwerefailing
tocomplywiththeirlaborand
socialsecurityobligations.
Environmentalaspectsare
alsoevaluatedincontracts
withsuppliersofmaterialsand
services.TheEnvironmental
areaworksinconjunctionwith
theSuppliesareatoobtain
documentationandevidence
regardinglegalcompliance
andtherequirementsofthe
IntegratedManagementSystem
(IMS).In2017,12suppliers
weremappedasposinga
potentialriskofimpactsonthe
environment(contamination
ofsoilbyoilandwaste,
groundwatercontamination,air
pollution,illegaldeforestation,
etc.)andwillhavetopass
throughthesupplier
qualificationprocess.
Qualification of Suppliers GRI 414-1, 414-2, 308-1, 308-2
Celeo Redes Brasil92 Celeo Redes Brasil 93Sustainability Report • 2017Sustainability Report • 2017
Community RelationsOneofthestakeholderengagement
strategiesaddresseshowthe
Companyrelatestothecommunities
closetoitsconcessions.CELEO
developedtheCommunity
RelationsPolicy,whichestablishes
theguidelinesforPrivateSocial
Investment(PSI)insocio-cultural
projects,humanrightsandhealth,
capableofcontributingtolocal
development.
TheCompanyusestaxincentive
laws(FundfortheElderly,FUMCAD,
RouanetLawandSportLaw)and
BNDESSocialSub-Credittoinvest
inprojectsthatgobeyondthe
compulsoryrequirementsorlegal
obligationsimposedduringthe
licensingprocessforitsenterprises.
Themanagementoftheprojects
iscarriedoutbyaspecialized
consultancy,withthesupportand
monitoringoftheEnvironmental
area.
Results in 2017WithregardstotheBNDESSocial
Subcreditfunding,theproject
presentedbyIMTEfinishedin2017.
Theprojecthascontributedtothe
socialdevelopmentofBomJesus
dasSelvas(MA)byimprovingthe
qualityofteaching,infrastructure
andagriculturalproductionand
providinginstitutionalstrengthening
forthePadreJosimoTavaresCFR
AgriculturalTechnicalSchool.The
projectalsocontributedtoincome
generationfortheschool,allowing
ittoreduceitsdependenceon
externalresources.
Twoprojectswereselectedin
themunicipalitiescrossedbythe
500kVEstreito-FernãoDias
TransmissionLine(CANTAREIRA).
Thefirst,the„VamosSalvaro
Planeta“(“LetsSavethePlanet”)
project,aimstocontributetothe
socioeconomicandenvironmental
developmentoftheMunicipality
ofMonteSantodeMinas(MG).
Thisinvolvestheconstructionofa
sortingandcompostingplantand
theimplementationofaselective
rubbishcollectionsystem,whichwill
benefittheurbanareaofthetown
andthreeotherruralcommunities:
Lagoa,CunhasandPitangueira.The
projectwillalsobenefittheMilagres
district.
TheotherCANTAREIRAproject,„
ViverBememCaetetuba”(“Living
WellinCaetetuba“)willtake
placeinaneighborhoodofthe
municipalityofAtibaia(SP).The
CaetetubaRailwayStationwillbe
revitalized,withtheinstallationofa
SocialAssistanceReferenceCenter
(CRAS)andaSocialOrganization
(Curumin)tomeetthedemandsof
approximately20,000peoplein
sociallyvulnerablesituationsandwill
includethepromotionofcoursesto
provideprofessionalqualifications.
Theprojectalsoforeseesthe
revitalizationofPraçaAntônio
Scavone.
+ BRL 1.5 mi Investedinsocialprojects
In2016and2017,BRL1.5million
wasinvestedinsocialprojects,of
whichBRL618,112camethroughthe
incentivelaws.
Project
Bagagem CulturalItaboraí
Encourage reading andpromote local culture
and pottery
Objective
Rouanet Law
Amount investedActions/Public Incentive
Workshops for trainingteachers in storytelling,reading mediation and
art-education forstudents of the
Municipal system.
R$ 404,438
São Jose VincentianCare Home
Contribute to the fundingof this non-governmentalorganization dedicated
to the care of the elderly
São João da Boa Vista (SP)Municipal Senior Citizen's Fund
Elderly residentsof the home R$ 71,225
Humanized healthsupport for childrenand adolescents in
the Pequeno PríncipeHospital
Contribute to thefunding of this
non-governmentalorganization
Municipal Fund for Children and Adolescentsof the municipality of Curitiba (PR)Patients at the hospital R$ 71,225
Olympic Reaction Projectyear VII
Provide funding for12-months for
development ofhigh-performance
athletes to participatein national and
international competitions
Sports Incentive Law
The program offers sportstraining in judo to
about 230 young people(11 years or older) and has
thesupport of amultidisciplinary team
in the areas of psychology,nutrition, physiotherapy
and physical preparation.
R$ 71,225
Projects with Tax Incentives
Celeo Redes Brasil94 Celeo Redes Brasil 95Sustainability Report • 2017Sustainability Report • 2017
Linha de Transmissão Corumbá (LTC) Theconcessioncrossesareasclosetothreeindigenous
communitiesoftheTerenaethnicgroup.Consideringthe
impactsofworksonthesecommunities,theCompany
hasdevelopedaseriesofmitigatoryactions,suchas:
SocialCommunicationProgram;EnvironmentalEducation
Program,focusedonindigenousissues;andtheProgram
toSupportIncomeGenerationandValueingoftheTerena
Culture.Thelatterinvolvedthefollowingdevelopments
fortheTerenacommunity:theconstructionofacultural
center;arainwatercollectionsystem;therefurbishment
ofacommunitycenter;theconstructionofasemi-
industrialkitchen;andprofessionalcoursesininformation
technology,traditionalcooking,fertilizerproductionand
administration.
Jauru Transmissora de Energia (JTE)Theroutetakenbytheconcessioncrossestheterritories
oftheindigenouslandsofTubarãoLatundêinRondônia
andPirineusdeSouza,ValedoGuaporé/Taihantesu,
Nambiquara,Uirapuru/CapitãoMarcosandJuininha
inMatoGrosso.Thestudyoftheinfluenceofthe
developmentonindigenouslandswascarriedout
duringtheenvironmentallicensingprocess,whichwas
directedbyIBAMA.Theactionsthatresultedfromthese
studiesbeganin2008andtookplaceinsixindigenous
territoriescontaining42villageswithapproximately
2,000people.TheProgramfortheProtectionand
SurveillanceofIndigenousLandswasalsocompletedwith
theconstructionof13supporthousesandsurveillance
stationsinthevillages.
Results in recent yearsDisplacement andIntervention in Local Communities
Therelationshipwithlocal
communities-includingindigenous
andtraditionalcommunities-isa
realityforCELEOsinceitsbusiness
modelhasdirectimpactsonthe
landinsomelocalities.
Forsomeprojectsitisnecessary
todisplacethelocalpopulation.
Thisprocessismanagedthrough
theProgramforLandOwnership
ManagementandMonitoring
ofAffectedPopulations.The
propertiesthatneedtobe
occupiedfortheinstallationof
thedevelopmentaremapped
andconsequentlythefamilies
areregisteredaspartofthe
compensationprocessandto
providesocialsupportwith
regardstothevulnerabilityand
inconveniencethattheymaysuffer
asaresultofthemove.In2017,
theimplementationofthe500kV
Estreito-FernãoDiasTransmission
Lineprojectwascompleted,
requiringtherelocationofeight
familygroupswhoarebeing
accompaniedwithspecificsocial
supportplansforeachfamily.
Asforindigenousandtraditional
communities,in2017there
werenonewinterferencesin
theseterritories.However,the
actionstargetingtheindigenous
communitiesclosetotheoperations
oftheLinhadeTransmissão
Corumbá(LTC)andJauru
TransmissoradeEnergia(JTE)
werecompleted.Inaddition,the
actionplanforthecommunities
ofCAIUÁwaspresentedtothe
competentbody(theNational
IndianFoundation-FUNAI)and
theCompanyisawaitingapproval
tobeginactivities.Theobjective
istoestablishmitigatingactions
forpossiblenegativeimpacts
fromconstruction.Inall,13
Tekohasvillageswerestudied,with
approximately2,293Indigenous
peoplefromtheAvá(Nhandeva)
andMbyátribesoftheGuarani
people.
GRI 411-1, EU20, EU22
Celeo Redes Brasil96 Celeo Redes Brasil 97Sustainability Report • 2017Sustainability Report • 2017
The Environment
Aware of its responsibility with regards to the consumption and use of natural resources, CELEO follows strict management standards in its operations.
Celeo Redes Brasil98 Sustainability Report • 2017 Celeo Redes Brasil 99Sustainability Report • 2017
Theenvironmentalmanagementof
CeleoRedesBrasil‘sdevelopments
beginsduringtheconceptionof
theprojects,basedonthesocio-
environmentalimpactstudies
undertakeninaccordancewiththe
currentlegislationandtheinternal
sustainabilitystandardsofthe
business.
Theenvironmentalareais
responsibleforthisprocess,which
includesthemanagementof
environmentalrisks,themonitoring
ofthelicensingwiththecompetent
bodiesandthemonitoringofthe
impactsaroundtheprojects.
TheCompanyhascreatedan
EnvironmentalManagement
Program,whichbringstogether
environmentaleducationprojects
inthesurroundingcommunities,
biodiversityimpactmanagement
actions,andwaste,water,energy
andgreenhousegas(GHG)
emissionsmanagement.In2017,the
Companyinvested3.9millioninthe
environmentalmanagementofits
developments.
Environmental investments and expenditure
Reforestation (CAPEX) 607,361.82
Integra Project (OPEX) 380,000.00
Environmental Management (OPEX*) 2,581,815.00
Environmental Management (CAPEX**) 184,023.02
Waste removal 45,000.00
Control of legal requirements 28,216.45
3,875,567.42
Mitigation kit 2,470.00
Total
Environmental EducationTheaimofenvironmental
educationistostrengthenCELEO‘s
relationshipwiththecommunities
locatedintheconcessionareas,in
ordertomitigatetheriskstothe
populationandestablishstrategies
forengagementandcommunication
withresidents.Thisshouldprovide
clarityandnewknowledgeabout
thesharedrolethateverybodyplays
intheconservationandprotection
oftheenvironment.
Aspartoftheenvironmental
licensingprocess,CELEO
developedanEnvironmental
EducationProgramatJauruEnergy
TransmissoradeEnergia(JTE)that
providesdistanceeducationcourses
targetingthepublicschoolsystem.
Therewerethreemoduleswith
themedcourses-totaling60hours
persemester-whereparticipants
learnedaboutPublicEnvironmental
Management,Participationin
PublicEnvironmentalPoliciesand
PedagogicalPracticesinCritical
EnvironmentalEducation.
In2017,therewere231people
enrolledfromatleastnine
municipalitiesoftheregion.Of
thosecompletingthecourse,52%
werestudents,38%wereteachers
and10%werepublicadministrators
(10%).
*Referstoresourcesusedtomeettheconditionsofenvironmentallicencingandstudies.**Referstoresourcesusedfortheenvironmentallicencingforthereinforce-mentoftheSEVilhenaSubstation.
Celeo Redes Brasil 101Sustainability Report • 2017Celeo Redes Brasil100 Sustainability Report • 2017
Biodiversity
Thesearchforalternativeswith
lowenvironmentalimpactsbefore
theinstallationofadevelopment
isconstantlyconsideredinthe
differentphasesoftheprojects.One
ofthesephasesistheevaluation
ofconservationunitsandpriority
areasforconservation,whichcanbe
identifiedbyresearchingwiththe
MinistryoftheEnvironment(MMA)
andtheChicoMendesInstitutefor
BiodiversityConservation(ICMBio).
CELEOalsousesitssocio-
environmentalstudies(EIA/
RIMA)andtheriskmatrixofthe
developments-elaboratedduring
thelicensingprocess-todevelop
programsformanagementoflocal
biodiversity.Themainimpacts
causedbytheenergytransmission
businessare:thesuppressionof
nativevegetation(habitatreduction
andfragmentation);socio-
environmentalimpactsonaffected
traditionalcommunities(indigenous
andquilombola);andtheerosive
processestriggeredbytheopening
ofaccessroutes.
ThemostrecentventureofCeleo
RedesBrasil,the500kVEstreito-
FernãoDiasTransmissionLine,is
342kminlengthandcrosses29
municipalitiesinthestatesofSão
PauloandMinasGerais,withmore
than80%ofitsrouteoutsideof
UnitsofConservationand/orPriority
Areas:
• ConservationUnits-500
kVEstreito-FernãoDiasTL
passesthrough29.59kmofthe
CantareiraSystemEnvironmental
ProtectionArea(APA)and37.56
kmofthePiracicabaJuqueri-
MirimIIEnvironmentalProtection
Area(APA).Italsopasseswithin
0.36and2.6kmoftheCaetê
MunicipalEcologicalStation
(ESEC)andtheÁguasdaPrata
StateReserve,respectively.
Theinteractionbetweenthe
conservationunitsmentioned
aboveandtheTLcanbeseenon
themapofConservationUnitsof
thisventure;
• PriorityAreasforBiodiversity
Conservation:threeareasare
interceptedbytheTL:Ma302-
ÁguasdaPrata/SãoJosédoRio
Pardo,Ma269-ÁguasdeLindóia
andCe059Conquista-Canastra.
TheTLtrajectorypassesthrough
theseareasfor59.91,13.64and
3.15km,respectively.
Endangeredspeciesoffauna(96
species)andflora(20species)onthe
IUCNlistand/orfederalandstate
listswereidentifiedintheseregions.
Otherpossibleimpactsmapped
beforethestartoftheworkswere
habitatloss,alterationofthe
qualityofwaterbodiesandnoise
disturbance.
Inall,12environmentalimpactson
biodiversityweremappedinthe
implementationphase.Inorderto
mitigateenvironmentalimpactsfrom
theconstructionoftheTransmission
Line,CELEOhasdeveloped
programsforEnvironmental
Offsetting,VegetationSuppression,
Germplasmconservation(seed-
saving),MonitoringofFaunaand
EnvironmentalConstructionPlans.
Recentlytheforestreplanting
projectwasinitiated,recently
approvedbythelicensingbody,
andforeseesthemonitoringof
therecoveryoftheplantedareas
foraperiodoffiveyearsafterthe
plantingoftheseedlings.Atotalof
45,729treeswillbeplanted,20%
morethanwhatwasnecessaryfor
theimplementationofthetotal
areaof22.86hectares,inorder
toguaranteecompliancewiththe
commitmentassumed.
List of endangered speciesLT 500 kV Estreito - Fernão Dias
13
3
6
Avifauna (birds)
Herpetofauna(amphibians and reptiles)
Mastofauna (mammals)
MMA MGIUCN SP
41
11
9
35
15
8
78
31
15
Espécies Fauna
Throughthisprogram,
CELEO‘sEnvironmental
areapreparesdiagnoses
oftheformationoferosive
processesforallofitsprojects
andplanstheinterventions
tobecarriedout,always
consideringthepreservation
oftheecosystemspresentin
theaffectedregion.In2017,
scheduledmaintenancewas
carriedouttorecuperate
erodedareasalongfive
stretchesoftheLinhade
TransmissãoTriângulo(LTT).
Recovery ofDegraded Areas
GRI 304-1, 304-2, EU13
GRI 304-4
Celeo Redes Brasil102 Sustainability Report • 2017 Celeo Redes Brasil 103Sustainability Report • 2017
Forestreplantingprograms
occuringreenareasclose
toCELEO’sprojects,asa
wayofcompensatingfor
thesuppressionofnative
vegetationrequiredfor
theconstruction.By2017,
approximately177,000
seedlingsofnativespecies
hadbeenplantedon161
hectares,closetothe
followingconcessions:PTE,
JTE,LTC,LTTandIMTE.
Forest ReplantingGRI 304-3
Development
Linha de Transmissão Triângulo (LTT)
Tree planting location Quantity of tree saplings
Rios Tijuco e da Prata State Wildlife Refuge, Fazenda Beiral da
Prata, in the municipality of Gurinhatã (MG)
Total of 261 trees:75 from endangered species;
186 saplings of native cerrado (savannah) tree species
Piraputangas Municipal Natural Park, in Corumbá (MS)
15,000 saplings of species native to the region, 50% of which are endangered
species
Area of 10 hectares
Linha de Transmissão Corumbá (LTC)
230 kV voltage and aprox. 290 km;Crosses four municipalities in Mato Grosso do Sul and connects to the
Anastácio substation owned by Eletrosul
Privately-owned area located in the municipality of Santa Inês (MA)
Native species from the regions were planted on 7.5 hectares
Integração Maranhense Transmissora de Energia (IMTE)
500 kV voltage and aprox. 365 km in length;
Expansion of two electricity substations - a SE Açailândia and SE Miranda II;
Crosses 11 municipalities in the state of Maranhão.
Permanent Preservation Area (APP) in the municipality of Comodoro (MT)
Foresees the planting of approximately 127.40 hectares of native vegetation by
2018
Jauru Transmissora de Energia (JTE)
230 kV voltage and approximately 345 km in length;
Interconnects the Vilhena Substation in the state of Rondônia (RO) with the
Jauru Substation in the state of Mato Grosso (MT)
Tree planting took place in the municipality of Cachoeiras de Macacu (RJ)
33,000 trees on 13.3 hectares7,000 trees on 2.8 hectaresPedras Transmissora de Energia (PTE)
Celeo Redes Brasil 105Sustainability Report • 2017Celeo Redes Brasil104 Sustainability Report • 2017
1
2
3
3
4
4
Eco-efficiency
GRI 303-1
Waterusedcomesfrom
groundwatersources.
18installationsuse
watermetersand
hourmetersto
controlconsumption.
Periodicphysical-chemicaland
bacteriologicalanalyzesareconducted
tomonitorthequalityofthe
waterused.
In2017,thetotalvolumeof
groundwaterconsumedwas
3,105.49m3.
Waste Management
GRI 306-2, 306-4
GRI 302-1, 302-4Wasteismanagedinaccordance
withtheNationalSolidWaste
Policy(LawNo.12,305,ofAugust
2,2010).
TheCompanyencouragesseparationforrecyclingatits
facilities.Thisyear,690kgofscrapmetal,aluminumwires
andcardboardweresenttoametallurgycompany.Also,
approximatelyninetonsofhazardouswastewererecycled
throughreverselogistics.
Volumeofwaste:Hazardous=2,021kg,2,850litres
and1.400units;Non-hazardous=5,228kg.
Monitoring of Energy Consumption
In2017,totalenergy
consumptionwas1,175
MWh/year.
Energyefficiencythroughtheproductionof
photovoltaicsolarenergyattheUberlândia
MaintenanceBase,whichtodayisresponsiblefor
approximately50%oftheenergyconsumedbythe
unit.Themarkof100,000kWhgeneratedsincethe
beginningoftheprojectin2014wasexceeded,
resultinginavoidanceof51,265.29kgCO2,79.20kg
NOxand0.27kgSO2inemissions.
Monitoring of Emissions
Thecompany’sfirstGreenhouse
GasemissionsInventorywas
preparedinaccordancewiththe
BrazilianGHGProtocolProgram.
Monitoring of Water Consumption and Quality
2
2017 Emissions (tCO2e)
Scope 1:
Scope 2:
Scope 3:
3,772.83
4,081.93
200.2
108.9 *
*Inscope2weshouldincludewhatweconsider
tobe“unmanageableemissions“whicharethose
resultingfromTransmissionLosses.
In2017thistotaled39,667.8(tCO2e).
1
Celeo Redes Brasil106 Sustainability Report • 2017 Celeo Redes Brasil 107Sustainability Report • 2017
GRI Standards 102 – General Disclosures
ORGANIZATIONAL PROFILE
INDICATOR DESCRIPTION COMMENTS PAGE
Disclosure102-1 Nameoftheorganization(G4-3). 18
Disclosure102-2 Activities,brands,products,andservices(G4-4+G4-PR6). 18
Disclosure102-3 Locationofheadquarters(G4-5). 128
Disclosure102-4 Locationofoperations(G4-6). 18
Disclosure102-5 Ownershipandlegalform(G4-7). 18
Disclosure102-6 Marketsserved(G4-8). 22
Disclosure102-7 Scaleoftheorganization(G4-9). 18
Disclosure102-8 Informationonemployeesandotherworkers(G4-10). 82
Disclosure102-9 Supplychain(G4-12). 92
Disclosure102-10 Significantchangestotheorganizationanditssupplychain(G4-13).
Therewerenosignificantchangesofthisnatureduringtheyear2017.
Disclosure102-11 PrecautionaryPrincipleorapproach(G4-14).
TheprecautionaryprincipleisincludedinCELEO‘sriskmanagementprocesses.
Disclosure102-12 Externalinitiatives(G4-15) 42
Disclosure102-13 Membershipofassociations(G4-16). 50
STRATEGY
Disclosure102-14 Statementfromseniordecision-maker(G4-1). 6;8
Disclosure102-15 Keyimpacts,risks,andopportunities(G4-2). 52
ETHICS AND INTEGRITY
Disclosure102-16 Values,principles,standards,andnormsofbehavior(G4-56). 20
Disclosure102-17 Mechanismsforadviceandconcernsaboutethics(G4-57andG4-58). 34
GOVERNANCE
Disclosure102-18 GovernanceStructure(G4-34). 31
Disclosure102-19 Delegatingauthority(G4-35). 30
Disclosure102-20Executive-levelresponsibilityfor
economic,environmental,andsocialtopics(G4-36).
30
Disclosure102-21 Consultingstakeholdersoneconomic,environmental,andsocialtopics(G4-37). 13
Disclosure102-22 Compositionofthehighestgovernancebodyanditscommittees(G4-38). 30
Disclosure102-23 Chairofthehighestgovernancebody(G4-39). 30
Disclosure102-24 Nominatingandselectingthehighestgovernancebody(G4-40). 31
Disclosure102-25 Conflictsofinterest(G4-41).Thereisnoconflictofinterest
sincetheCompanydoesnothaveaBoardofDirectors.
Disclosure102-26 Roleofhighestgovernancebodyinsettingpurpose,values,andstrategy. 30
INDICATOR DESCRIPTION COMMENTS PAGE
GRI Content IndexGRI 102-55
Celeo Redes Brasil108 Celeo Redes Brasil 109Sustainability Report • 2017Sustainability Report • 2017
Disclosure102-27 Collectiveknowledgeofhighestgovernancebody(G4-43).
IMSCommitteemeetings;hiringofspecializedsustainabilityconsultancyfirm;goalsandtargetsmeetings
(ESG).
Disclosure102-28 Evaluatingthehighestgovernancebody’sperformance(G4-44). 30
Disclosure102-29Identifyingandmanagingeconomic,environmental,andsocialimpacts
(G4-45).
InallCELEO‘sprojects,environmentalandsocio-environmentalstudiesarecarriedouttoidentifyandevaluateimpactsintheplanning,implementationandoperationstages.Appropriatemeasuresareimplementedtoprevent,mitigateorcompensatenegativeimpactsandtomaximizepositiveimpacts.MonitoringProgramsareimplementedtomanagethesemeasures,whereapplicable.
Disclosure102-30 Effectivenessofriskmanagementprocesses(G4-46). 30
Disclosure102-31 Reviewofeconomic,environmental,andsocialtopics(G4-47). 52
Disclosure102-32Highestgovernancebody’srolein
sustainabilityreporting(G4-48).
TheExecutiveDirectorisresponsibleforanalyzingandformallyapprovingtheCompany‘ssustainabilityreportandensuringthatallmaterialtopics
areaddressed.
Disclosure102-33 Communicatingcriticalconcerns(G4-49).
Thereisnoprocesstocommunicatecriticalconcernstothehighestgovernancebodygiventhe
Company‘sstructure.AtCeleoRedesBrasil,theBoardofExecutiveOfficers
isanexecutivebody.
Discloure102-34 Natureandtotalnumberofcriticalconcerns(G4-50).
Thereisnoprocesstocommunicatecriticalconcernstothehighestgovernancebodygiventhe
Company‘sstructure.AtCeleoRedesBrasil,theBoardofExecutiveOfficers
isanexecutivebody.
Disclosure102-35 Remunerationpolicies(G4-51). Remunerationpoliciesarebeingstudiedforimplementationin2018.
Disclosure102-36 Processfordeterminingremuneration(G4-52). 82
Disclosure102-37Stakeholders’involvementin
remuneration(G4-53).
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure102-38 Annualtotalcompensationratio(G4-54).Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure102-39Percentageincreaseinannualtotal
compensationratio(G4-55).
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
STAKEHOLDER ENGAGEMENT
Disclosure102-40 Listofstakeholdergroups(G4-24). 46
Disclosure102-41 Collectivebargainingagreements(G4-11).
AtCELEO,100%oftheemployeesarecoveredbyCollectiveAgreement.Thereisacommitteeresponsibleforrepresentingtheguidelines
establishedbytheemployeesandtheBoardofExecutiveOfficers.Aftertheagenda’sapproval,theinformationistakentoallemployeesandvotedonbythem.Therefore,theprocessis
constructiveanddemocratic.
Disclosure102-42 Collectivebargainingagreements(G4-11).Identifyingandselectingstakeholders(G4-25). 15
Disclosure102-43 Approachtostakeholderengagement(G4-26). 13;46
Disclosure102-44 Keytopicsandconcernsraised(G4-27;G4-PR5). 14
REPORTING PRACTICES
Disclosure102-45 Entitiesincludedintheconsolidatedfinancialstatements(G4-17).
CeleoRedesBrasilS.A.(CELEO)LinhasdeTransmissãoCorumbáS.A.(LTC)EncruzoNovoTransmissoradeEnergia
S.A.(ENTE)PedrasTransmissoradeEnergiaS.A.(PTE)LinhasdeTransmissãoTriânguloS.A.(LTT)ViladoCondeTransmissoradeEnergiaS.
A.(VCTE)CoqueirosTransmissoradeEnergiaS.A.
(CTE)Theresultsforpartially-ownedcompanieswererecognizedusingtheEquityMethod.
Theseare:CaiuáTransmissoradeEnergiaS.A.
(CAIUÁ)IntegraçãoMaranhenseTransmissorade
EnergiaS.A.(IMTE)CantareiraTransmissoradeEnergiaS.A.
(CANTAREIRA)JauruTransmissoradeEnergiaS.A.(JTE)BrilhanteTransmissoradeEnergiaS.A.
(BTE)BrilhanteIITransmissoradeEnergiaS.A.
(BTEII)
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
Celeo Redes Brasil110 Celeo Redes Brasil 111Sustainability Report • 2017Sustainability Report • 2017
Disclosure102-46 DefiningreportcontentandtopicBoundaries(G4-18). 13
Disclosure102-47 Listofmaterialtopics(G4-19). 14
Disclosure102-48 Restatementsofinformation(G4-22).
N/A.ThisisCeleoNetworksBrazil’ssecondreport,thistimepublicand
audited.
Disclosure102-49 Changesinreporting(G4-23).N/A.ThisisCeleoNetworksBrazil’ssecondreport,thistimepublicand
audited.
Disclosure102-50 Reportingperiod(G4-28). 12
Disclosure102-51 Dateofmostrecentreport(G4-29). 12
Disclosure102-52 Reportingcycle(64-30). 12
Disclosure102-53 Contactpointforquestionsregardingthereport(G4-31). 130
Disclosure102-54 ClaimsofreportinginaccordancewiththeGRIStandards(G4-32). 12
Disclosure102-55 GRIcontentindex(G4-32). 108
Disclosure102-56 Externalassurance(G4-33). AssurancewasperformedbyKPMGIndependentAuditors 128
GRIStandards103–ManagementApproach
Disclosure103-1 Explanationofthematerialtopicandits
Boundary(G4-DMA-a+G4-20+G4-21).13;14
Disclosure103-2
Themanagementapproachandits
components(G4-DMA-b+G4-EN34+
G4-LA16+G4-HR12+G4-SO11+G4-
EN31).
Theformofmanagementis
addressedthroughoutthereportin
thechaptersofthetopicsconsidered
relevant.
Disclosure103-3 Evaluationofthemanagementapproach
(G4-DMA-c).
Theformofmanagementis
addressedthroughoutthereportin
thechaptersofthetopicsconsidered
relevant.
GRIStandards200series–EconomicTopics
ECONOMIC PERFORMANCE (GRI 201)
Disclosure201-1 Directeconomicvaluegeneratedanddistributed(G4-EC1). 60
Disclosure201-2Financialimplicationsandotherrisksandopportunitiesduetoclimatechange(G4-EC2).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
Disclosure201-3 Definedbenefitplanobligationsandotherretirementplans(G4-EC3).
CELEOdoesnothavearetirementplan.
Disclosure201-4 Financialassistancereceivedfromgovernment(G4-EC4).
CELEOdidnotreceivefinancialaidfromtheGovernmentforthebaseyear2017.
MARKET PRESENCE (GRI 202)
Dsiclosure202-1Ratiosofstandardentrylevelwagebygendercomparedtolocalminimumwage(G4-EC5).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
Disclosure202-2 Proportionofseniormanagementhiredfromthelocalcommunity(04-EC6).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
INDIRECT ECONOMIC IMPACTS (GRI 203)
Disclosure203-1 Infrastructureinvestmentsandservicessupported(G4-EC7).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
Disclosure203-2 Significantindirecteconomicimpacts(G4-EC8).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
PROCUREMENT PRACTICES (GRI 204)
Disclosure204-1 Proportionofspendingonlocalsuppliers(G4-EC9).
Theindicatorwasnotprioritizedinthematerialityprocessforthebaseyear2017.
ANTI-CORRUPTION (GRI 205)
Disclosure205-1 Operationsassessedforrisksrelatedtocorruption(G4-303). 34
Disclosure205-2Communicationandtrainingabout
anti-corruptionpoliciesandprocedures(G4-304).
35
Disclosure205-3 Confirmedincidentsofcorruptionandactionstaken(G4-305). 34;35
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
Celeo Redes Brasil112 Celeo Redes Brasil 113Sustainability Report • 2017Sustainability Report • 2017
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
ANTI-COMPETITIVE BEHAVIOR (GRI 206)
Disclosure206-1Legalactionsforanti-competitivebehavior,anti-trust,andmonopoly
practices(G4-SO7).
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure419-1 SocioeconomicCompliance(GRI419).Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
GRIStandards300series–EnvironmentalTopics
MATERIALS (GRI 301)
Disclosure301-1 Materialsusedbyweightorvolume(G4-EN1).
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure301-2 Recycledinputmaterialsused(G4-EN1).
ThistopicisirrelevanttoCELEORedes’activitiesandoperations.
Disclosure301-3 Reclaimedproductsandtheirpackagingmaterials(G4-EN1).
ThistopicisirrelevanttoCELEORedes’activitiesandoperations.
ENERGY (GRI 302)
Disclosure302-1 Energyconsumptionwithintheorganization(G4-EN13). Infographic 107
Disclosure302-2 Energyconsumptionoutsideoftheorganization.
Disclosure302-3 Energyintensity.
Disclosure302-4 Reductionofenergyconsumption(G4-EN6). Infographic 107
Disclosure302-5 Reductionsinenergyrequirementsofproductsandservices(G4-EN7).
ThistopicisirrelevanttoCELEORedes’activitiesandoperations.
WATER (GRI 303)
Disclosure303-1 Waterwithdrawalbysource(G4-EN8). Infographic 106
Disclosure303-2 Watersourcessignificantlyaffectedbywithdrawalofwater(G4-EN9).
IndicatorisirrelevanttoCeleoRedesBrasil’soperationsandactivities.Thereisnosignificantwaterwithdrawalinany
stageoftheproject.
Disclosure303-3 Waterrecycledandreused(G4-EN10).
IndicatorisirrelevanttoCeleoRedesBrasil’soperationsandactivities.WaterconsumptionatCELEO’soperationsis
notsignificant.
BIODIVERSITY (GRI 304)
Disclosure304-1
Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotected
areas(G4-EN11).
104
Disclosure304-2 Significantimpactsofactivities,products,andservicesonbiodiversity(G4-EN12). 102
Disclosure304-3 Habitatsprotectedorrestored(G4-EN13). 104
Disclosure304-4IUCNRedListspeciesandnational
conservationlistspecieswithhabitatsinareasaffectedbyoperations(G4-EN14).
103
EMISSIONS (GRI 305)
Disclosure305-1 Direct(Scope1)GHGemissions(G4-EN15).
CeleoRedesBrasiljoinedtheBrazilianGHGProtocolProgram.ThefirstInventory(scope:2017)receivedexternalverification,withLimitedAssurance,carriedoutbyKPMGIndependentAuditors.
Disclosure305-2 Energyindirect(Scope2)GHGemissions(G4-EN16).
CeleoRedesBrasiljoinedtheBrazilianGHGProtocolProgram.
ThefirstInventory(scope:2017)receivedexternalverification,withLimitedAssurance,carriedoutbyKPMGIndependentAuditors.
Disclosure305-3 Otherindirect(Scope3)GHGemissions(G4-EN17)
CeleoRedesBrasiljoinedtheBrazilianGHGProtocolProgram.ThefirstInventory(scope:2017)receivedexternalverification,withLimitedAssurance,carriedoutbyKPMGIndependentAuditors.
Disclosure305-4 GHGemissionsintensity(G4-EN18).
Disclosure305-5 ReductionofGHGemissions(G4-EN19).
Disclosure305-6 Emissionsofozone-depletingsubstances(ODS)(G4-EN20).
Disclosure305-7Nitrogenoxides(NOX),sulfuroxides
(SOX),andothersignificantairemissions(G4-EN21).
EFFLUENTS AND WASTE (GRI 306)
Disclosure306-1 Waterdischargebyqualityanddestination(G4-EN22).
Effluentistreatedinaseptictank.BOD(biochemicaloxygendemand)analysisis
performedperiodically.Theannualvolumeofdiscardedeffluentswas591.00m3,whichcomesfrom23controlroomsandeightsafetycabins.
Celeo Redes Brasil114 Celeo Redes Brasil 115Sustainability Report • 2017Sustainability Report • 2017
Disclosure306-2 Wastebytypeanddisposalmethod(G4-EN23).
Approximatelysixtonsofhazardouswastewererecycled.However,thisvolumewasnotentirelygeneratedin2017,sincetherewaswaste
generationinpreviousyearswhichwasstoredinaccordancewithcurrent
legislation.
106
Disclosure306-3 Significantspills(G4-EN241). TherewasnosignificantleakagefromCELEO‘sfacilitiesin2017.
Disclosure306-4 Transportofhazardouswaste(G4-EN25). 106
Disclosure306-5 Waterbodiesaffectedbywaterdischargesand/orrunoff(G4-EN26).
ThereisnosignificantdischargeofeffluentsanddrainagewaterintowaterbodiesfromCeleoRedesBrasil’sactivitiesandoperations.
ENVIRONMENTAL COMPLIANCE (GRI 307)
Disclosure307-1 Non-compliancewithenvironmentallawsandregulations. 36
AVALIAÇÃO AMBIENTAL DE FORNECEDORES (GRI 308)
Disclosure308-1 Newsuppliersthatwerescreenedusingenvironmentalcriteria(G4-EN32). 93
Disclosure308-2 Negativeenvironmentalimpactsinthesupplychainandactionstaken(G4-EN33). 93
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
GRIStandards400series–Socialtopics
EMPLOYMENT (GRI 401)
Disclosure401-1 Newemployeehiresandemployeeturnover(LA-1). 82
Disclosure401-2Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryor
part-timeemployees.86
Disclosure401-3 Parentalleave.
In2017,sixmenandsixwomentookparentalleave.Allreturnedtoworkaftertheleaveperiod.Theretentionrate,after12monthsofleave,was93%amongmenand
85%amongwomen.
LABOR/MANAGEMENT RELATIONS (GRI 402)
Disclosure402-1 Minimumnoticeperiodsregardingoperationalchanges.
Thereisnominimumdeadlinefornotificationofoperationalchanges.However,measuresareadoptedto
minimizetheimpactsarisingfromthesechanges,andtoadaptemployeestothenewprocess,withthesupportoftheSeniorManagement,newslettersandinstructions,face-to-facemeetings,
etc.
OCCUPATIONAL HEALTH AND SAFETY (GRI 403)
Disclosure403-1Workersrepresentationinformaljointmanagement–workerhealthandsafety
committees.88
Disclosure403-2
Typesofinjuryandratesofinjury,occupationaldiseases,
lostdays,andabsenteeism,andnumberofwork-relatedfatalities(G4-LA13).
90
Disclosure403-3 Workerswithhighincidenceorhighriskofdiseasesrelatedtotheiroccupation. 88
Disclosure403-4 Healthandsafetytopicscoveredinformalagreementswithtradeunions(G4-LA8).
ClausesoftheCollectiveAgreementthatcoveroccupationalsafetyissues:
ClauseNine–DangerousWorkAdd-onsClauseSixteen-PeriodicHealthExamination
V-WorkingConditionsClauseTwenty-Three-FirstAid
ClauseTwenty-Four-InternalCommissionforAccidentPrevention
ClauseTwenty-Fifth-MinutesoftheInternalCommissionforAccidentPreventionMeetingsClauseTwenty-Six-NoticeofAccidentsatWorkClauseTwenty-Seven-CompliancewithNR-10
ClauseThirty-GroupLifeInsurance
TRAINING AND EDUCATION (GRI 404)
Disclosure404-1 Averagehoursoftrainingperyearperemployee. 84
Disclosure404-2Programsforupgradingemployeeskillsandtransitionassistanceprograms(G4-
LA).84
Disclosure404-3Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews
(G44-LA1).82
DIVERSITY AND EQUAL OPPORTUNITY (GRI 405)
Disclosure405-1 Diversityofgovernancebodiesandemployees(LA).
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Celeo Redes Brasil116 Celeo Redes Brasil 117Sustainability Report • 2017Sustainability Report • 2017
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
Disclosure405-2 Ratioofbasicsalaryandremunerationofwomentomen.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
NON-DISCRIMINATION (GRI 406)
Disclosure406-1 Incidentsofdiscriminationandcorrectiveactionstaken.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING (GRI 407)
Disclosure407-1Operationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatrisk.
ThesupplierassessmentprocesscarriedoutbyCeleoRedesBrasil
didnotincludethisrisk.
CHILD LABOR (GRI 408)
Disclosure408-1 Operationsandsuppliersatsignificantriskforincidentsofchildlabor.
ThesupplierassessmentprocesscarriedoutbyCeleoRedesBrasil
didnotincludethisrisk.
FORCED OR COMPULSORY LABOR (GRI 409)
Disclosure409-1Operationsandsuppliersatsignificantriskforincidentsofforcedorcompulsory
labor(G4-HR6).
ThesupplierassessmentprocesscarriedoutbyCeleoRedesBrasil
didnotincludethisrisk.
SECURITY PRACTICES (GRI 410)
Disclosure410-1 Securitypersonneltrainedinhumanrightspoliciesorprocedures(G4HR7).
CeleoRedesBrasildidnotpromotethistrainingin2017.
RIGHTS OF INDIGENOUS PEOPLES (GRI 411)
Disclosure411-1 Incidentsofviolationsinvolvingrightsofindigenouspeoples.
Therewasnodiscriminationagainstindigenousortraditionalpeoples
in2017.96
AVALIAÇÃO EM DIREITOS HUMANOS (GRI 412)
Disclosure412-1 Operationsthathavebeensubjecttohumanrightsreviewsorimpactassessments.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure412-2 Employeetrainingonhumanrightspoliciesorprocedures.
CeleoRedesBrasildidnotpromotethistrainingin2017.
Disclosure412-3Significantinvestmentagreementsand
contractsthatincludehumanrightsclausesorthatunderwenthumanrightsscreening.
Therewerenoinvestmentagreementsandcontractsin2017.
LOCAL COMMUNITIES (GRI 413)
Disclosure413-1Operationswithlocalcommunity
engagement,impactassessments,anddevelopmentprograms.
48;49
Disclosure413-2Operationswithsignificantactualandpotentialnegativeimpactsonlocal
communities.
Significantnegativeimpactsonlocalcommunities,ifanyexist,wereidentifiedinsocio-environmentalstudies,andrelevantmitigationmeasureswereimplemented.
SUPPLIER SOCIAL ASSESSMENT (GRI 414)
Disclosure414-1 Newsuppliersthatwerescreenedusingsocialcriteria. 93
Disclosure414-2 Negativesocialimpactsinthesupplychainandactionstaken. 93
PUBLIC POLICY (GRI 415)
Disclosure415-1 Politicalcontributions. Therewerenopoliticalcontributionsin2017.
CUSTOMER HEALTH AND SAFETY (GRI 416)
Disclosure416-1Assessmentofthehealthandsafetyimpactsofproductandservice
categories.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure416-2Incidentsofnon-complianceconcerningthehealthandsafetyimpactsofproducts
andservices.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
MARKETING AND LABELING (GRI 417)
Disclosure417-1 Requirementsforproductandserviceinformationandlabelling.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
Disclosure417-2Incidentsofnon-complianceconcerningproductandserviceinformationand
labelling.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
Disclosure417-3 Incidentsofnon-complianceconcerningmarketingcommunications.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
CUSTOMER PRIVACY (GRI 418)
Disclosure418-1Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlosses
ofcustomerdata.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
SOCIOECONOMIC COMPLIANCE (GRI 419)
Celeo Redes Brasil118 Celeo Redes Brasil 119Sustainability Report • 2017Sustainability Report • 2017
PLANT DECOMMISSIONING
G4-DMAEUSDEC(formerEU9)
Provisionsfordecommissioningofnuclearpowersites.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
SYSTEM EFFICIENCY
G4-EU11Averagegenerationefficiencyofthermalplantsbyenergysourceandbyregulatory
regime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU12 Transmissionanddistributionlossesasapercentageoftotalenergy.
CELEOdoesnothavedistributionlines.
Directmeasurementsarestillnotmadeatthetransmissionfacilitiestomeasureactualtransmissionlosses.Intheemissionscalculation(scope2)ofthe2017Inventoryapreliminary
estimatewasmade.
CATEGORY ENVIRONMENTAL
BIODIVERSITY
G4-EU13 Biodiversityofoffsethabitatscomparedtothebiodiversityoftheaffectedareas. 102
CATEGORY SOCIAL – LABOR PRACTICES AND DECENT WORK
EMPLOYMENT
G4-DMAEUSDLA(formerG4-EU14)
Programsandprocessestoensuretheavailabilityofaskilledworkforce(DMA). 84
G4-EU15
Percentageofemployeeseligibletoretireinthenext5and10yearsbrokendownbyjob
categoryandbyregion.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
G4-DMAEUSDLA
(formerG4-EU16)
Policiesandrequirementsregardinghealthandsafetyofemployeesandemployeesofcontractorsandsubcontractors(DMA). 88
G4-EU17Daysworkedbycontractorandsubcontractor
employeesinvolvedinconstruction,operation&maintenanceactivities.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
Disclosure419-1 Non-compliancewithlawsandregulationsinthesocialandeconomicarea. 36
GRIStandards–SectorSupplement
ORGANIZATIONAL PROFILE
GRI-EU1Installedcapacity,brokendownby
primaryenergysourceandbyregulatoryregime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
GRI-EU2Netenergyoutputbrokendownby
primaryenergysourceandbyregulatoryregime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
GRI-EU3Numberofresidential,industrial,
institutionalandcommercialcustomeraccounts.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
GRI-EU4Lengthofaboveandundergroundtransmissionanddistributionlinesby
regulatoryregime.
In2017,CeleoRedeswonabidwhichincluded111kmof500kVTLand255kmof230kVTL.Thecriterionusedtoinformthe
extensionofTLswastheyearoftheauction.
CELEOdoesnothavedistributionlines.
GRI-EU5AllocationofCO2eemissionsallowancesorequivalent,brokendownbycarbon
tradingframework.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
CATEGORY ECONOMIC
AVAILABILITY AND RELIABILITY
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
G4-DMAEUSDEC(formerG4-EU6)
Managementapproachtoensureshortandlong-termelectricityavailabilityand
reliability(DMA).
68
G4-EU10
Plannedcapacityagainstprojectedelectricitydemandoverthelongterm,brokendownbyenergysourceand
regulatoryregime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
DEMAND-SIDE MANAGEMENT
G4-DMAEUSDEC
(formerEU7)
Demand-sidemanagementprogramsincludingresidential,commercial,institutionalandindustrialprograms.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
RESEARCH AND DEVELOPMENT
G4-DMAEUSDECformerG4-EU8)
Researchanddevelopmentactivityandexpenditureaimedatprovidingreliableelectricityandpromotingsustainable
development(DMA).
79
Celeo Redes Brasil120 Celeo Redes Brasil 121Sustainability Report • 2017Sustainability Report • 2017
G4-EU18 Percentageofcontractorandsubcontractoremployeesthathaveundergonerelevant
healthandsafetytraining.
TheCompanyhasatrainingprogramthatincludesthetrainingrequiredbythelegislationandotherprogramsthatarepertinenttothe
developmentofactivities.Outsourcedworkersand
subcontractorsmeetthetrainingscheduleprovidedinPG-025
(generalprocedureforoccupationalhealthandsafetyforvisitorsandcontractors),butthereisstillno
capacityindicator.
CATEGORY SOCIAL – SOCIETY
LOCAL COMMUNITIES
G4-DMAEUSDSO(formerG4-EU19)
Stakeholderparticipationindecisionmakingprocessesrelatedtoenergyplanningandinfrastructuredevelopment(DMA).
Stakeholderparticipationoccursthroughopinionsandcontributionsmadebyregulatoryagents,aswellasparticipationinclassassociations,suchasABDIBandABRATE,aswellasparticipationinpublic
hearings.Forexample:therewasamodificationintheCantareiraProject’sroutetorespectthe
requirementofnovisualimpactonthelandscape.
G4-DMAEUSDSO(formerG4-EU20)
Approachtomanagingtheimpactsofdisplacement(DMA). 96
G4-EU22Numberofpeoplephysicallyor
economicallydisplacedandcompensation,brokendownbytypeofproject.
96
DISASTER/ EMERGENCY PLANNING AND RESPONSE
G4-DMAEUSDSO(formerG4-EU21)
Contingencyplanningmeasures,disaster/emergencymanagementplanandtrainingprograms,andrecovery/restorationplans
(DMA).
73
CATEGORY SOCIAL – PRODUCT RESPONSIBILITY
CUSTOMER HEALTH AND SAFETY
G4-EU25Numberofinjuriesandfatalitiestothe
publicinvolvingcompanyassets,includinglegaljudgments,settlementsandpending
legalcasesofdiseases.
Theindicatorwasnotprioritizedinthematerialityprocessforthebase
year2017.
ACCESS
G4-DMAEUSDPR(formerG4-EU23)
Programs,includingthoseinpartnershipwithgovernment,toimproveormaintainaccesstoelectricityandcustomersupport
services(DMA).
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU26 Percentageofpopulationunservedinlicenseddistributionorserviceareas.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU27 Numberofresidentialdisconnectionsfornon-payment,brokendownbydurationofdisconnectionandbyregulatoryregime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU28 Poweroutagefrequency. ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU29 Averagepoweroutageduration. ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
G4-EU30 Averageplantavailabilityfactorbyenergysourceandbyregulatoryregime.
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
PROVISION OF INFORMATION
G4-DMAEUSDPR(formerG4-EU24)
Practicestoaddresslanguage,cultural,lowliteracyanddisabilityrelatedbarrierstoaccessingandsafelyusingelectricityandcustomersupportservices(DMA).
ThisindicatorisnotapplicableforCeleoRedesBrasil’soperations.
INDICATOR DESCRIPTION COMMENTS PAGE INDICATOR DESCRIPTION COMMENTS PAGE
Celeo Redes Brasil122 Celeo Redes Brasil 123Sustainability Report • 2017Sustainability Report • 2017
Annual Social Balance Sheet 2017CELEO REDES
1 - CALCULATION BASE 2017 AMOUNT (BRL THOUSANDS)
2016 AMOUNT (BRL THOUSANDS)
NetIncome(NI) 195,183 231,734
Resultbeforetaxonprofits 107,709 158,047
Grosspayroll 18,703.19 17,346.05
2 - INTERNAL SOCIAL INDICATORS Amount (thousand)
% on Gross Payroll % on NI Amount
(thousand)
% on Gross Payroll
% on NI
Food 1,521.01 8.13% 0.78% 1,203.27 6.94% 0.52%
Mandatorysocialcharges 6,595.53 35.26% 3.38% 5,514.69 31.79% 2.38%
Privatepensionfund 0 0% 0.00% 0 0.00% 0.00%
Healthcare 2,410.41 12.89% 1.23% 2,013.80 11.61% 0.87%
OccupationalHealthandSafety 0 0% 0.00% 0 0.00% 0.00%
Education 0 0% 0.00% 6.02 0.03% 0.00%
Culture 0 0% 0.00% 0 0.00% 0.00%
TrainingandProfessionalDevelopment 570.91 3.05% 0.29% 203.71 1.17% 0.09%
Crechesorchildcareassistance 25.04 0% 0.01% 15.86 0.09% 0.01%
Profitsharingplans 0 0% 0.00% 0 0.00% 0.00%
Transport 348.19 2% 0.18% 283.99 1.64% 0.12%
Others 26.96 0% 0.01% 32.00 0.18% 0.01%
Total - Internal Social Indicators 11,498.04 61.48% 5.89% 9,273.33 53.46% 4.00%
3 - EXTERNAL SOCIAL INDICATORS Amount (thousand)
% on Gross Payroll % on NI Amount
(thousand)
% on Gross Payroll
% on NI
Education 0 0.00% 0.00% 0 0.00% 0.00%
Culture 0 0.00% 0.00% 0 0.00% 0.00%
HealthandSanitation 0 0.00% 0.00% 0 0.00% 0.00%
Sport 0 0.00% 0.00% 0 0.00% 0.00%
Combattinghungerandfoodsecurity 0 0.00% 0.00% 0 0.00% 0.00%
Others(RouanetLawProjects) 207.38 0.19% 0.11% 0 0.00% 0.00%
Totalcontributionstosociety 207.38 0.19% 0.11% 0 0.00% 0.00%
Taxes(excludingsocialsecurity) 20.50% 11.31% 59,388.00 37.58% 25.63%
Total - External Social Indicators 22,288.38 20.69% 11.42% 59,388.00 37.58% 25.63%
4 - ENVIRONMENTAL INDICATORS Amount (thousand)
% on Gross Payroll % on NI Amount
(thousand)
% on Gross Payroll
% on NI
Investmentsrelatedtothecompany‘sproduction/operations
3,876 3.60% 1.99% ND - -
Investmentsinexternalprojectsand/orprograms 0 0.00% 0.00% ND - -
Total environmental investments
Celeo Redes Brasil124 Celeo Redes Brasil 125Sustainability Report • 2017Sustainability Report • 2017
Withregardstosettingannual targetstominimizewaste,generalconsumptionforproduction/operationsansincreasingefficentcyofresourceuse,thecompany:
()doesnothavetargets()achieves51to75%(X)achieves0to50%()achieves76to100%
(X)doesnothavetargets()achieves51to75%()achieves0to50%()achieves76to100%
5 - INDICATORS FOR THE WORKFORCE 2017 2016
Nºofemployeesattheendoftheperiod 230 228
Nºofnewhiringsintheperiod 56 38
Nºofemployeesleaving/maderedundantintheperiod
36 32
Nºofcontractedworkersattheendoftheperiod 35 31
Nºofinternsattheendoftheperiod 2 2
Nºofyoungapprenticesattheendoftheperiod 0 0
Nºofemployeesover41attheendoftheperiod 53 47
Nºofwomenworkinginthecompanyattheendoftheperiod
44 41
%ofmanagementpositionsheldbywomen 6% 6%
NºofAfro-Braziliansworkingatthecompanyattheendoftheperiod
30 30
%ofmanagementpositionsheldbyAfro-Brazilians
0% 0%
Nºofwhitesworkingatthecompanyattheendoftheperiod
200 198
Nºofpeoplewithdisabilitiesorspecialneedsattheendoftheperiod
0 0
6 - QUALIFICATIONS OF THE WORKFORCE 2017 2016
Nºofpostgraduates(specialists,mastersanddoctors)
21 19
Nºofgraduates 64 60
Nºofpeoplewithincompletegraduation 0 0
Nºofpeoplewithhighschooleducation 102 104
Nºofpeoplewithincompletehighschooleducation
0 0
Nºofpeoplewithprimaryeducation 43 45
Nºofpeoplewithincompleteprimaryschooleducation
0 0
Nºofnon-literatepeople 0 0
7 - INFORMATION RELEVANT TO CORPORATE CITIZENSHIP 2017 2016
Ratiobetweenhighestandlowestremunerationinthecompany
30.75 30.75
Totalnumberofaccidentsatwork 2 2
Thesocialandenvironmentalprojectsdevelopedbythecompanyweredefinedby:
(X)SeniorMan.
()SeniorMan.andmanagers
()allemployees(X)
SeniorMan.
()SeniorMan.andmanagers
()allemployees
Thesafetyandhealthinessofpracticesintheworkplaceweredefinedby:
(X)SeniorMan.
()allemployees
(X)all+Cipa()SeniorMan.andmanagers
()allemployees
(X)all+Cipa
Asregardsfreedomofassociation,therighttocollectivebargainingandtheinternalrepresentationofworkers,thecompany:
()doesnotgetinvolved
(X)followstheOITstandards
()incentivizesandfollowsthe
OIT
()doesnotgetinvolved
(X)followstheOITstandards
()incentivizesandfollowsthe
OIT
Theprivatepensionfundcovers:()
SeniorMan.
()SeniorMan.andmanagers
()allemployees()
SeniorMan.
()SeniorMan.andmanagers
()allemployees
Theprofitsharingplancovers:()
SeniorMan.
()SeniorMan.andmanagers
(X)allemployees()
SeniorMan.
()SeniorMan.andmanagers
(X)allemployees
Intheselectionofsuppliers,thesameethicalandsocialandenvironmentalresponsibilitystandardsadoptedbythecompany:
()arenotconsidered
()aresuggested
(X)arerequired()arenotconsidered
()aresuggested
(X)arerequired
Asforemployeeparticipationinvoluntaryworkprograms,thecompany:
(x)doesnotgetinvolved
()supports()organizesandencourages
(x)doesnotgetinvolved
()supports()organizesandencourages
Totalnumberofconsumercomplaintsandcriticisms:
tothecompany
0
toProcon0
totheCourts0
tothecompany
0
toProcon0
totheCourts0
%ofcomplaintsandcriticismsansweredorresolved:
tothecompanyNA
toProconNA
totheCourtsNA
tothecompanyNA
toProconNA
totheCourtsNA
Totaladdedvaluetobedistributed(inthousandBRL):
In 2017: BRL 131,020 In 2016: ND
DistributionofValueAdded(DVA):12%government45%employees33%shareholders10%suppliers
-
8 - OTHER INFORMATION
InformationprovidedincludestheparentcompanyCeleoRedeBrasilandthefollowingconcessionaires:CaiuáTransmissoradeEnergia,CantareiraTransmissoradeEnergia,CoqueirosTransmissoradeEnergia,EncruzoNovoTransmissoradeEnergia,IntegraçãoMaranhenseTransmissoradeEnergia,JauruTransmissoradeEnergia,LinhadeTransmissãoCorumbá,LTTriângulo,PedrasTransmissoradeEnergia,VilaCondeTransmissoradeEnergia,BrilhanteTrasmissoradeEnergiaandBrilhanteIITransmissoradeEnergia.
Celeo Redes Brasil126 Celeo Redes Brasil 127Sustainability Report • 2017Sustainability Report • 2017
KPMG Financial Risk & Actuarial Services Ltda.Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A04711-904 - São Paulo/SP - BrasilCaixa Postal 79518 - CEP 04707-970 - São Paulo/SP - BrasilTelefone +55 (11) 3940-1500, Fax +55 (11) 3940-1501www.kpmg.com.br
Limited assurance report issued by independent auditors TotheBoardofDirectors,ShareholdersandStakeholdersCELEO Redes BrasilRio de Janeiro - RJ
Introduction
WehavebeenengagedbyCELEORedesBrasil(“CELEO”or“Company”)toapplylimitedassuranceproceduresonthesustainabilityinformationdisclosedinCELEO´sAnnualReport,relatedtotheyearendedDecember31st,2017.
Responsibilities of CELEO’s Management
TheManagementofCELEOisresponsibleforadequatelypreparingandpresentingthesustainabilityinformationinthe2017AnnualReportinaccordancewiththeGlobalReportingInitiative(GRI)SustainabilityReportingStandards,aswellastheinternalcontrolsdeterminednecessarytoensurethisinformationisfreefrommaterialmisstatement,resultingfromfraudorerror.Independent auditors’ responsibility
Ourresponsibilityistoexpressaconclusionabouttheinformationinthe2017AnnualReportbasedonalimitedassuranceengagementconductedinaccordancewithTechnicalCommunication(TC)07/2012,whichwaspreparedbasedonNBCTO3000(AssuranceEngagementsOtherThanAuditsandReviews),bothissuedbytheBrazilianFederalAccountingCouncil-CFCandequivalenttointernationalstandardISAE3000,issuedbytheInternationalFederationofAccountantsandapplicabletoNon-FinancialHistoricalInformation.Thesestandardsrequirecompliancewithethicalrequirements,includingindependenceones,andtheengagementisalsoconductedtoprovidelimitedassurancethattheinformationdisclosedintheCELEO’s2017AnnualReport,takenasawhole,isfreefrommaterialmisstatement.
AlimitedassuranceengagementconductedinaccordancewithNBCTO3000(ISAE3000)consistsmainlyofquestionsandinterviewswiththeManagementofCELEOandotherprofessionalsoftheCompanyinvolvedinthepreparationoftheinformationdisclosedinthe2017AnnualReportanduseofanalyticalprocedurestoobtainevidencethatenablesustoreachalimitedassuranceconclusionaboutthesustainabilityinformationtakenasawhole.Alimitedassuranceengagementalsorequiresadditionalprocedureswhentheindependentauditoracknowledgesissueswhichmayleadthemtobelievethattheinformationdisclosedinthe2017AnnualReporttakenasawholecouldpresentmaterialmisstatement.
Theselectedprocedureswerebasedonourunderstandingoftheissuesrelatedtothecompilation,materialityandpresentationoftheinformationdisclosedinthe2017AnnualReport,onotherengagementcircumstancesandalsoonourconsiderationsregardingareasandprocessesassociatedwithmaterialsustainabilityinformationdisclosedwhererelevantmisstatementcouldexist.
The procedures consisted of:
a. Engagementplanning:consideringthematerialaspectsforCELEO’sactivities,therelevanceoftheinformationdisclosed,theamountofquantitativeandqualitativeinformationandtheoperationalsystemsandinternalcontrolsthatservedasabasisforpreparationoftheinformationintheCELEO’s2017AnnualReport.Thisanalysisdefinedtheindicatorstobecheckedindetails;
b. Understandingandanalysisofthedisclosedinformationrelatedtomaterialaspectsmanagementapproach;c. Analysisofpreparationprocessesofthe2017AnnualReportanditsstructureandcontent,basedonthe
PrinciplesforDefiningReportContentandQualityoftheGRISustainabilityReportingStandards;d. Evaluationofnonfinancialindicatorsselected:
•Understandingofthecalculationmethodologyandproceduresforthecompilationofindicatorsthroughinterviewswithmanagementresponsiblefordatapreparation;•Applicationofanalyticalproceduresregardingdataandinterviewsforqualitativeinformationandtheircorrelationwithindicatorsdisclosedinthe2017AnnualReport;•Analysisofevidencesupportingthedisclosedinformation;•VisitstoCELEO’sofficesandsitesforapplicationoftheseprocedures,anditems(b)and(c);
e. Analysisofwhethertheperformanceindicatorsomissionandjustificationarereasonabletobeaccepted
associatedtoaspectsandtopicsdefinedasmaterialinthematerialityanalysisoftheCompany;f. Comparisonoffinancialindicatorswiththefinancialstatementsand/oraccountingrecords.
Webelievethattheinformation,evidenceandresultswehaveobtainedaresufficientandappropriatetoprovideabasisforourlimitedassuranceconclusion.
Scope and limitations
Theproceduresappliedtoalimitedassuranceengagementaresubstantiallylessextensivethanthoseappliedtoareasonableassuranceengagement.Therefore,wecannotprovideassurancethatweareawareofalltheissuesthatwouldhavebeenidentifiedinareasonableassuranceengagement,whichaimstoissueanopinion.Ifwehadconductedareasonableassuranceengagement,wemayhaveidentifiedotherissuesandpossiblemisstatementswithintheinformationpresentedinthe2017AnnualReport.Nonfinancialdataissubjecttomoreinherentlimitationsthanfinancialdata,duetothenatureanddiversityofthemethodsusedtodetermine,calculateorestimatethesedata.Qualitativeinterpretationofthedata‘smateriality,relevanceandaccuracyaresubjecttoindividualassumptionsandjudgments.Additionally,wehavenotexamineddatarelatedtopriorperiods,evaluatedtheadequacyofthecompany´spolicies,practicesandsustainabilityperformance,norfutureprojectionsandtargets.
Conclusion Basedontheprocedurescarriedout,describedearlierinthisreport,wehavenotidentifiedanyrelevantinformationthatleadsustobelievethattheinformationinCELEO’s2017AnnualReportisnotfairlystatedinallmaterialaspectsinaccordancewiththeGRISustainabilityReportingStandards,aswellasitssourcerecordsandfiles.
São Paulo, June 11th, 2018
KPMGAssessoresLtda.CRC2SP034262/O-4F-SP
Eduardo V. CipulloAccountant CRC 1SP135597/O-6
KPMGFinancialRisk&ActuarialServicesLtda.
Ricardo Algis ZibasDirector
External
Assurance Letter
Celeo Redes Brasil128 Celeo Redes Brasil 129Sustainability Report • 2017Sustainability Report • 2017
Corporate Information
CELEOREDES
Director and Secretary:JoaquínGomezdeOlea
Members of the Board of Diretors:JoaquínGomezdeOlea
JoséÁngelLostao
DirkHovers
RobertJanBakker
CELEOREDESBRASILS/A (GRI 102-3)
CNPJ04.718.109/0001-10
I.E77.565.655
I.M313.171-8
Av.MarechalCâmara,160-sala1433
Centro/RJ-20.020-080
Brazil
Phone:+55(21)3171-7000
Contactfordoubtsand/or
suggestions(102-53)
New Business Developmentand Sustainability Management
MarceloViniciusVieiraLima
CarolinaGonzalezGonzagadeOliveira
Report preparation
CELEOREDESBRASIL
Executive Director: FranciscoAntolinChicaPadilla
Coordination of the GRI Report: MarceloViniciusVieiraLima
GRIConsultingandText:
Keyassociados
LimitedAssurance:
KPMGAuditoresIndependentes
Layout:
KiteEstratégiasDigitais
Translation:
SimonRowe
Celeo Redes Brasil 131Sustainability Report • 2017Celeo Redes Brasil130 Sustainability Report • 2017
Celeo Redes Brasil132 Celeo Redes Brasil 133Sustainability Report • 2017Sustainability Report • 2017
Celeo Redes Brasil136 Sustainability Report • 2017