INTEGRATION OF THE SDG s IN THE BRAZILIAN ELECTRIC POWER SECTOR

INTEGRATION OF THE SDG s IN THE BRAZILIAN ELECTRIC POWER SECTOR CONCEPT AND SUPPORT

partners A SECTORIAL VISION FOR THE SDGs

Dear Partners,

This research is another result of how the Global It is important to emphasize that the study Compact Network has addressed the proposes a reflection not only related to the 2030 Agenda in the corporate sector through advances in reaching the SDGs, but also about its Thematic Groups on Energy & Climate and the future challenges, business opportunities, SDG. Following the study “Integration of the creation of new products and services, and the SDGs in Business Strategies - a contribution of impacts that still impede a better adherence of the the Global Compact Brazilian Committee for organizations. All this will serve as a reference to the 2030 Agenda”, launched in April 2017, the create a model capable of inspiring other sectors, Brazilian Association of Electric Power Distributors besides influencing a public agenda, whose (Abradee), CPFL Energia and ENEL proposed the regulatory framework is decisive for the private study to establish an outlook of how the Global sector to create means to implement the SDGs in Goals have influenced the work of public and private its policies and actions. Brazilian electric power companies. Therefore, weather in the electric power sector or Groundbreaking, the study demonstrates how other sectors of the Brazilian economy, adhering to concerned is the Brazilian electric power sector the SDGs will reinforce more the strategic role about the adoption of the Sustainable Development of partnerships. In addition, represents a significant Goals (SDGs) in its business strategies. In addition opportunity for companies to do their part in to being vital to the economy and society – in order achieving the 2030 Agenda in Brazil and assume to supply an essential public good for the production their responsibility in global challenges solution. We of goods and services – it is a sector whose activity believe in sustainability as a competitive advantage is closely bound to climate change issues and has for the Brazilian private sector. been discussing the insertion of alternative energy sources in the country’s electrical grid, an objective that refers to the SDG 7 (Clean and Affordable Energy), among others SDGs.

The figures brought by researchers of the School of Economics, Business Administration and Denise Hills Accounting of Ribeirão Preto of the University President of the Global Compact Network of São Paulo (FEA-RP/USP) bring a diagnosis of Brazil and Superintendent of Sustainability and Inclusive Business of Itaú Unibanco the sector regarding the adherence as well as opportunities to evolve in the topic, after only two years since the launch of 2030 Agenda: 65% of the companies - from a total of 20 companies of the Carlo Pereira electric power sector, whether of power generation, Executive Secretary of distribution, and transmission, representing Brazil’s Global Compact Network Brazil five geographic regions in various states – already consider the SDGs in their business strategies in the alignment of good practices. CREDITS

INTEGRATIO OF THE Sdgs IN THE BRAZILIAN ELECTRIC POWER SECTOR

RESEARCH STAFF Adriana Cristina Ferreira Caldana Professor – USP Caroline Kruger Denise Hills (Itaú Unibanco) President Ph.D. Candidate – USP Larissa Marchiori Pacheco Cristiana Brito (BASF), Ph.D. Candidate – FGV/EAESP (CPFL Energia), Rodolfo Nardez Sirol Marlon Fernandes Rodrigues Alves Marcia Massotti (Enel) e Sonia Favaretto () Ph.D. Candidate – USP Vice-Presidents Nayele Macini Ph.D. Candidate – USP Carlo Pereira Executive Secretary Neusa Maria Bastos Fernandes dos Santos Professor – PUC/SP

THEMATIC AREAS PUBLICATION STAFF Barbara Dunin Barbara Dunin, Elisa Badziack and Governance and 2030 Agenda Luiz Fernando Campos Elisa Badziack Editors Environment Helena Fruet Gabriela Almeida Report and Editing Human Rights and Anticorruption Akemi Takenaka Graphic Design and Layout Marcelo Paradizo COMMUNICATIONS Revision Luiz Fernando Campos Adviser Maria Garcia and Mateus Ferreira EDITORIAL BOARD Interns Ana Paula Caporal (Enel), Leny Medeiros (Abradee), Ligia de Lima Carvalho (CPFL), ADMINISTRATIVE Mariana Paál F. Martinato (Consultant), Fabiana Cerqueira Mauricio Braga Vasconcelos (Enel) Adviser Natália Tadokoro Ricci (CPFL) and Ana Carolina Paci Rafaele Rodrigues Lebani (CPF). Assistant

MAY 2018 MESSAGE FROM THE THEMATIC GROUPS SDGs AND ENERGY & CLIMATE

The Sustainable Development Goals unite Energy & Climate TG’s objectives include environmental, social and economic aspects, influencing society and remain as a proactive group and have partnerships as a premise to their in the quest for knowledge. In this sense, the TG achievement until 2030. The joint action is so incentivizes engaged companies to become active relevant that there is a specific SDG dedicated to players in the discussion on issues of relevance this issue – SDG 17 (Partnerships for the Goals). to the fields of Energy & Climate, seeking to evolve towards a positive agenda aligned with The Global Compact Network Brazil strives to the Sustainable Development Goals (SDG) and support and mobilize companies towards sustainable strategic actions of the business community. development. To make use of its network of more than 750 organizations, the Network Brazil Therefore, the Energy & Climate TG, in established the SDG Thematic Group (TG), whose partnership with the SDG TG, conceived this mission is to develop methodologies that contribute diagnosis of the correlation between current to corporate engagement with this new agenda. practices in the Energy sector and adherence Through dissemination and capacity building around to the SDGs requirements. This sector is of SDGs, the TG strives to stimulate a transformative particular importance due its relevance in the and needed action by the private sector for 2030 competitiveness of the national product. In Agenda. The group also works in partnership addition, both the TG and this publication identified with other organizations and coalitions with projects that are inspirations for companies which, which it shares the challenge of engaging the irrespective of their size or experience in the issue, Brazilian private sector. want to implement actions to strengthen the connection between the SDGs and their strategies. In this context, the SDG TG joined the Energy & Climate Thematic Group to turn into reality the Finally, a special acknowledgment to the desire to build a sectorial vision for the SDGs, companies that participated more actively in contributing so the companies in the Brazilian this initiative, as well as all of those that take Electric Power Sector can define their strategies part in our network and have invested constantly within the new agenda. We hope this publication in innovation and best practices for improving serves to support companies in the definition of their business management. business strategies and inspire the development of similar analyses for other sectors. Enjoy your reading!

Giovana Sgreccia Luiz Carlos Xavier Coordinator of the Energy & Coordinator of the SDG Climate TG and lead corporate TG and Sustainability and officer for Climate Change Inclusive Business Manager in ’s Sustainable at Itaú Unibanco Development Division MESSAGE FROM THE PROJECT IDEALIZERS

In 2012, the then Secretary-General of the United Identifying where we are regarding the SDGs Nations, Ban Ki-Moon, declared, “Energy is the – both in terms of the understanding and the common thread that connects economic growth, actions to meet and disseminate the goals – it is a with increased social equity and an environmental great opportunity for companies to be part of the sustainability that will allow the world to thrive.” solution for global problems, explore new markets He was referring to the importance of the energy and create new products and services that help sector to global development – economic and their countries achieve the 2030 Agenda. This is social. Attentive of this, we met to understand the chance for all of us to speak a global language where Agenda the Brazilian Electric Power and work on a cause in partnership. Sector is here in Brazil concerning commitment to the 2030 and how we could help us to meet After all, nowadays we cannot think about a as many as possible of the 169 targets of the 17 company’ strategy disconnected from the world Sustainable Development Goals proposed by UN. challenges. Everything is interconnected, and the ambitious objectives being pursued are closely Our motivation is enormous, since the SDGs are correlated to the 2030 Agenda objectives. The in fact in the global sustainability strategy of our recommendation is that, in order to remain companies. The study is a way for us to learn with sustainable as a company, we must be vigilant to other companies in the sector how to work in the the issues that our contemporaneity imposes on us. best possible way and share the challenges – which are huge. We had an excellent participation Enjoy your reading! of the electric power sector as a whole – with the support of Abradee, more than 96% of the power distribution sector participated in the study, bringing us an excellent base to work. We gathered in a single publication the performance of the electric power sector in relation to the SDGs challenges in Brazil, bringing a global vision of the sector and highlighting different and relevant practices. Our intention was to involve Marcia Massotti every sector in the Brazilian energy market Vice-President of the Global Compact – distribution, generation, transmission, and Network Brazil and Director of Sustainability for the Enel Group in Brazil commercialization – in an unprecedented sectoral initiative, both in Brazil and abroad. Rodolfo Nardez Sirol Vice-President of the Global Compact Network Brasil and Director of Sustainability for CPFL CONTENTS

10 INTRODUCTION 20 RESULTS 36 CONCLUSION 44 ANNEXES 58 REFERENCES IN TRO DUC TION

14 |

GLOBAL COMPACT NETWORK BRAZIL AND THE CBPG

The United National Global Compact was management of companies and organizations launched in 2000 by then-Secretary-General operating in Brazil, as a way to strengthen the Kofi Annan. Today, it is considered the largest corporate sustainability movement in the country. corporate citizenship initiative in the world The CBPG understands that the Ten Principles with more than 12,000 signatories, including constitute the minimum standards for corporate companies and organizations. The Global sustainability policies and practices for the country. Compact Network Brazil was founded in 2003 and currently has more than 750 signatories. The CBPG brings together companies, As the fourth largest network , and the largest business entities, civil society organizations in the Americas, works in partnership with the and educational institutions. CBPG members United National Development Programme coordinate the actions of six thematic groups – (UNDP) and is managed by the Brazilian Global Water, Food & Agriculture, Anticorruption, Human Compact Committee (CBPG). Rights, Energy & Climate and SDGs.

The CBPG is a volunteer group that seeks to Approximately 40 organizations participate in promote the adoption and incorporation of the the CBPG and the current board of directors is Ten Principles of the Global Compact and the composed by Itaú Unibanco (presidency), BASF, Sustainable Development Goals (SDGs) in the B3, CPFL Energia and Enel. INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 15

FROM THE MDG Eradicate extreme 1 poverty and hunger TO THE SDGs Achieve universal 2 primary education

Millennium Promote gender equality 3 and empower women Development Goals The Millennium Development Goals (MDG) were established by the UN in 2000 Reduce child mortality for the purpose of achieving goals related 4 to the promotion of human dignity and the fight against poverty, hunger, diseases, illiteracy, environmental degradation and discrimination against women. 5 Improve maternal health

Combat HIV/AIDS, malaria 6 and other diseases

Ensure environmental 7 sustainability

Develop a global partnership 8 for development

Sustainable Development Goals

At the 2015 United Nations Summit on Sustainable facing other challenges of our time. The SDGs are Development, the Heads of State of 193 countries integrated and indivisible and mix in a balanced adopted the 2030 Agenda for Sustainable manner the three dimensions of sustainable Development, consisting of a set of 17 Sustainable development: economic, social and environmental. Development Goals (SDG). The SDGs were based As the lead UN channel to the private sector, the on the outcomes of Rio+20 and took into account United Nations Global Compact is tasked with the legacy of the Millennium Development the mission of engaging companies with this new Goals (MDG). Centered on achieving progress on development agenda. unfulfilled MDG, the SDGs are aimed at ensuring human rights, eradicating poverty, combating inequality and injustice, achieving gender equality and empowering women and girls, in addition to 16 | GLOBAL COMPACT NETWORK BRAZIL

End poverty in all End hunger, achieve food security Ensure healthy its forms everywhere and improved nutrition and lives and promote promote sustainable agriculture well-being for all

Ensure inclusive and equitable quality Achieve gender equality Ensure availability and Ensure access to affordable, education and promote lifelong and empower all sustainable management of reliable, sustainable and learning opportunities for all women and girls water and sanitation for all modern energy for all

Promote sustained, inclusive and Build resilient infrastructure, Reduce inequality Make cities and human sustainable economic growth, promote inclusive and within and among settlements inclusive, safe, full and productive employment sustainable industrialization countries resilient and sustainable and decent work for all and foster innovation

Ensure sustainable Take urgent action to Conserve and sustainably Protect, restore and promote consumption and combat climate change use the oceans, seas and sustainable use of terrestrial production patterns and its impacts marine resources for ecosystems, sustainably sustainable development manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

LEARN MORE ABOUT THE SDGs AT http://agenda2030.com.br/ Promote peaceful and inclusive Strengthen the means of societies for sustainable implementation and revitalize development, promote access to the global partnership for justice for all and build effective, sustainable development accountable and inclusive institutions at all levels INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 17

INTRODUCTION AND MOTIVATION

The Global Compact Network Brazil, in partnership benefit the Brazilian population,” he says. “At the with the School of Economics, Business same time, it is an opportunity for all of us to Administration and Accounting at Ribeirao speak a global language and work in a cause in Preto of the University of São Paulo (FEA-RP/ partnership,” adds Mr. Sirol. USP) and the Pontifical Catholic University of São Paulo (PUC-SP), offers this groundbreaking EXCHANGE OF EXPERIENCES study on how companies in the Brazilian energy In the view of Ana Paula Caporal, Sustainability sector are committing themselves to the 2030 Planning and Stakeholder Management manager Agenda. This initiative, a pioneering effort at Enel in Brazil, the study is a good opportunity amongst global studies on the SDGs and within to learn from and exchange with other companies the electric power sector, was conceived by in the sector. “The SDGs are in fact incorporated CPFL Energia and Enel, with the critical support in Enel’s global sustainability strategy. At the of the Brazilian Association of Electric Power 2030 Agenda inaugural event held at the UN, Distributors (Abradee), which has been engaged the company submitted the formal commitment in incentivizing sustainable management among undertaken by our CEO, Francesco Starace, which energy distributors in Brazil for more than 10 included our quantitative goals relating directly years. The project was also innovative in its to SDG 4 (Quality Education), SDG 7 (Clean and management within the Global Compact Network Affordable Energy), SDG 8 (Decent Work and Brazil, because for the first time it counted on the Economic Growth) and SDG 13 (Combat Climate collaboration of representatives from two TGs – Change). In addition to those goals, the group’s Energy & Climate and SDG. The Energy & Climate entire strategic plan was deployed in the 17 TG is currently made up of 51 representatives of SDGs, thereby demonstrating that all of us at the companies and organizations in different sectors, company work directly or indirectly on behalf of while the SDG TG currently has 61 representatives. this global agenda,” she said. The technical support for the project was provided by FEA-RP/USP. “We had already conducted a EXAMPLES TO FOLLOW study on the issue for CPFL, which recommended Nelson Fonseca Leite, president of Abradee, the effort to be extended for the remaining believes that the sector plays a fundamental participants in the Energy & Climate TG and, role as an example to other companies. “The subsequently, to the entire Brazilian energy sector,” relationship between electric power and notes Adriana Caldana, FEA-RP/USP researcher human development, income generation and and professor. In addition to the study, the Global job creation indexes is well known. Currently, Compact Network Brazil organized two workshops the role of companies extends even further by on the issue in September and November 2017. creating opportunities and offering solutions for environmental preservation and sustainability of CHALLENGES AND OPPORTUNITIES the planet,” he says. Companies in the electric For CPFL Energia’s director of sustainability, power sector identified the most challenging Rodolfo Sirol, the implementation of 2030 Agenda SDGs to be internalized in their actions as well remains a challenge and requires paradigm as cited successful implementation cases. shifts in public and private management. “This “One of our objectives with the analysis is encompasses changes in language and the need precisely the creation of a model that inspire to work in partnerships, up to commitments other sectors, in addition to influencing a public deployment undertaken in the form of policies, agenda,” explains Carlo Pereira, executive goals and resource allocation intended to secretary of the Global Compact Network Brazil. 18 | GLOBAL COMPACT NETWORK BRAZIL

RESEARCH AND METHODOLOGY

This study is part of an participants on the Global The research brought and distribution) and in the ongoing research project Compact Energy & Climate together the largest national territory and, lastly, conducted by FEA- TG and, subsequently, to all companies in the Brazilian companies with various levels RP/USP and PUC/SP companies in the electric Electric Power Sector. of integration of the SDGs in entitled “Challenges and power sector. To ensure the Thanks to ABRADEE’s great their business strategy. Opportunities of Adopting the quality of the results and involvement in the study, 96% Sustainable Development representativeness of the of the energy distribution The sectorial Goals in Companies: Evidence electric power sector, the sector took part in the survey. representativeness of from the Brazilian Electric study’s creators pursued and The questionnaire utilized survey participants, the Power Sector”1 (CALDANA, obtained partnerships with 5 was based on the pilot study, active engagement of upper 2018). The research associations of the Brazilian discussions with experts management in the case methodology includes an electric power companies in the sector and the SDG studies and the presence analysis of the main business : ABRADEE, Brazilian Compass manual. of external experts at the impacts and opportunities for Association of Photovoltaic workshops ensured an the Brazilian Electric Power Solar Energy (ABSOLAR), Another relevant aspect of the adequate analysis of the Sector deriving from the Brazilian Association of research was the conduction Brazilian Electric Power Sustainable Development Wind Energy (ABEEólica), of case studies on the Sector. The study helped to Goals and the application Brazilian Association of application of the SDGs. Five disseminate the SDGs and of the SDG Compass Independent Electric Power companies were selected from generate a healthy discussion methodology Producers (APINE), Brazilian the survey for the qualitative on the value of the 2030 within companies. Association of Electric stage, consisting of interviews Agenda for the sector. Finally, Power Generators (ABRAGE) and writing of case studies, the construction of an ideal From a previous study on and other entities invited by based on the noteworthy SDG matrix for the energy the SDGs conducted by the Global Compact Network results obtained on the survey, generation and distribution/ FEA-RP/USP at CPFL, came Brazil. The stages of the representativeness transmission sectors may the idea of extending the research are described in the in the energy business indicate new opportunities research to the remaining Figure below. (generation, transmission and challenges.

Workshop 1: Workshop 2: SDG Survey of practices Discussion of Application Case Matrix for the Brazilian studies in the BES preliminary results electric sector

PARTICIPANTS: companies Definition of SELECTION Based on the results of the participating in the study, CRITERIA of the five case GLOBAL COMPACT EVENT previous stage, a WORKSHOP Study presentation and members of the SDG and study companies: highlight WITH PARTICIPATING Energy & Climate TGs, invited on the survey results, invitation to companies to COMPANIES, members of the take part in the survey participants (Ethos, WWF, FIESP, representativeness of the Energy & Climate and SDG TGs, FNQ, CRA-SP, Ascende Brasil). energy business areas members of sector associations (generation, transmission and entities engaged in General PRESENTATION of the and distribution); territorial sustainability was organized SDG and SDG Compass scope; companies with REGISTRATION OF different levels of SDGs COMPANIES interested in CREATION OF TWO WORKING integration in their strategies participating in study DISCUSSION OF GRAPHICS SUBGROUPS: One to discuss and preliminary survey results distribution/transmission and one Selected companies: Enel, to discuss power generation Itaipu, , CPFL and EDP SURVEY OF PRACTICES OF BES COMPANIES CREATION OF MATRIXES based on Contact with representatives in relation to the SDGs Proposal to hold a hierarchy of 17 SDG, considering of each of the five selected through application of online Workshop 2 to prepare both positive and negative impacts companies and interviews with questionnaires (survey) the SDGs matrix at BES and business opportunities area managers

1 CALDANA, A.C.F. Desafios e Oportunidades da Adoção dos Objetivos de Desenvolvimento Sustentável nas Empresas: Evidências do Setor Elétrico Brasileiro. 2018. Dissertation (Doctorate) – School of Economics, Business Administration and Accounting of Ribeirão Preto, University of São Paulo, Ribeirão Preto, 2018. All other references in this publication may be viewed in the References section on pages 60-61. INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 19

SDGs COMPASS

The guide for business action on the SDGs

The Guide for Business Action on the SDGs has a role to inspire and summon companies to contribute to the attainment of the Sustainable Development Goals. The proposal is to explain how the SDGs affect and are affected by business activities in addition to offering tools and know- how to guide companies to align their strategies and measure their contribution to this agenda.

The publication is part of a joint effort of the United Nations Global Compact, the Global Reporting Initiative (GRI) and the World Business Council for Sustainable Development (WBCSD). The Portuguese translation is signed by the Global Compact Network Brazil, GRI and the Brazilian Business Council for Sustainable Development (CEBDS).

To view the Guide in Portuguese THERE ARE FIVE STEPS to guide this journey – pactoglobal.org.br/publicacoes – to view that brings together governments, companies, the original version – sdgcompass.org and civil society, aiming to end poverty and create a life with dignity and opportunities for all. 20 | GLOBAL COMPACT NETWORK BRAZIL

PARTICIPATING COMPANIES

Get to know the profile of the companies that collaborated with the research

The Brazilian Electric Power Sector (SEB) activities responsible for most of their revenues, underwent structural reforms beginning in the and 25% present the generation as their main 1990s, aiming for greater economic autonomy activity. The Brazilian power distribution sector and efficiency. As a result of these changes, the was almost totally covered by the participating sector segments were divided between generation, companies in the survey (96%). Of these, 85% are transport (distribution and transmission) signatories of the Global Compact. and commercialization. Generation sector is responsible for the production of electric energy Considering the number of employees, the and injection in transport systems for purposes participating companies have different sizes: of reaching the consumers. The transport segment, 10% of the companies employ more than 12,000 which includes transmission and distribution, collaborators; 25%, between 6,000 and 9,000; aims to transport the energy coming from power and 40%, up to 3,000. Among research plants (ABRADEE, 2018).2 respondents, 55% work in the sustainability area; 20% in environmental and social areas; and 25% Of the participating companies, approximately are from other areas or have not declared the 75% have the distribution and transmission as the area they belong to. IINTEGRATION OF THE SDG IN THE BRAZILIAN ELECTRIC POWER SECTOR | 21

Figures about Number of employees the companies: 8 0 – 3,000 Activity responsible 12,000 or more for most of the company’s revenue 2 2 5 15 5 3,000 – 6,000 Distribution + Generation 9,000 – transmission 12,000 3 6,000 – 9,000

Global Compact Signatory? Working area of the respondents

55% Linked to the 25% 3 17 sustainability Linked to No Yes area other areas

Intensity of P&D (in addition to regulatory %) 13 0.01 – 3.00 4

3.01 – 5.00 2 Linked to the 20% environmental 5.01 or above 1 and social area

RE SUL TS 24 | GLOBAL COMPACT NETWORK BRAZIL

Motivation to work with the SDGs Companies see the 2030 Agenda as an opportunity 5% to align their organizational Strengthen the relationship strategies with sustainability with stakeholders good practices (internal and external)

15% Transform the sector’s business The SDGs intend to respond to the new environment, challenges arising from globalization by aiming long- merging the three dimensions of sustainable -term results development: economic, social and environmental. In this way, the 2030 Agenda relies on business action to achieve the 169 established goals.

The inclusion of resource sustainability and environmental preservation as a strategic issue came to reverse a certain downward trend in the share of renewable sources in the Brazilian matrix perceived since 2000. (TOLMASQUIM GUERREIRO; GORINI, 2007).3 To this changing trend in the sector is important to add the side effect of the environmentalist pressure present in the sustainable development concept, which made urgent the change in the energy systems 10% 4 around the world. (JANNUZZI, 2005). In this Use a globally way, companies have been seeking, through validated the adoption of good practices, to promote the language and a transition of the sector to sustainability and also shared purpose to fulfill an agenda of global relevance.

By virtue of the country’s regulatory framework, changes in consumer opinion and, further, the concern with extending good practices to their value chain, companies also report that the SDG are important for a closer relationship with their stakeholders and an important motivator for the adoption of the 2030 Agenda. IINTEGRATION OF THE SDG IN THE BRAZILIAN ELECTRIC POWER SECTOR | 25

Meet legal and 5% regulatory demands

65% What is the Align the organization’s motivation of your strategy with good practices organization when of corporate sustainability working with the SDGs? 26 | GLOBAL COMPACT NETWORK BRAZIL

Perspectives on the SDGs as strategic benchmark

The path for implementing the SDGs in organizations already includes the integration of strategic agendas Was the SDGs perspective considered as a The graph reveals that all of benchmark for developing or reviewing the the companies participating in organization’s business strategy and management? the research have an interest in integrating the SDGs into business strategy and 40% of the participating companies in the research already use some of the The SDGs are considered within SDGs as a benchmark for reviewing 10% YES the company their strategy. However, 20% did and throughout not use the SDGs, but based all the chain their strategies on other global sustainability agendas. Finally, 30% of companies in the sector plan to incorporate the SDGs as a Some SDGs have benchmark in future strategies. 40% been adopted as SOME benchmark Only two companies (10% of respondents) are currently at a more advanced stage and are already applying the SDGs in a more integrated manner in 30% But they will be all their value chain. This is an NOT adopted as benchmark important highlight, because YET in the next planning the very idealization of the agenda proposes the integrated vision of the 17 SDGs and their corresponding goals, since But global sustainability considering only some of them agendas, such as the in their management could 20% Millennium generate conflicts and possible NO Development Goals negative impacts on SDGs not yet (MDGs), were considered considered. Itaipu Binacional’s strategic importance and historic role in generating clean energy 0% The organization has spurred the decision to select no interest in adopting NO the SDGs as benchmark the company to participate as an application case in this study. INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 27

STRATEGIC ISSUE Itaipu Binacional made the adoption of 2030 Agenda part of the company’s management Itaipu Binacional is the world leader in clean and renewable energy production, having generated more than 2.5 billion MWh since the beginning of its operation, in 1984. With 20 generating units and 14,000 MW of installed capacity, the company supplies approximately 15% of the energy consumed in Brazil and 86% of the energy consumed in Paraguay (base year 2017). Construction of hydropower plants impacts the biosphere. Cognizant of this, Reaching beyond further with effective and socio-environmental responsibility has been a As part of UN secretary-general transparent partnerships based core institutional mission of Itaipu since 2003, Ban Ki-Moon’s second visit on ethical values,” explains the reflecting the commitment of the company and its to the Plant in 2016, Itaipu director. “Nowadays, ITAIPU is employees and collaborators to the broader society signed a technical cooperation following the natural course and life on the Planet. In 2015, the UN recognized agreement with the United of its mission and vision. We the socio-environmental program Cultivando National Development are contributing to generating Água Boa (Cultivating Clean Water), developed by Programme (UNDP) on the energy from alternative sources Itaipu in partnership with 29 municipalities in the application of the SDGs in (biomass, biogas, electric Paraná River Basin 3, as the best water resources the 54 cities comprising the vehicles), aiming to reduce management initiative in the world in the “Best Association of Municipalities greenhouse gas emissions. We practices in water management” category. of Western Paraná – (AMOP). actively participate in COP23, In Luiz Fernando’s view, the presenting solutions during Action on journey is long, but possible. the event to prevent, adapt Multiple Fronts “Today, the 2030 Agenda and build resilience against According to Luiz Fernando requires a work aligned with the effects of climate change. 15% Leone Vianna, Brazilian our business strategy, it has to Finally, we undertook the Itaipu general-director of Itaipu be etched into the company’s commitment to serve as an supplies 15% Binacional, achieving the SDGs DNA and not only in occasional example and demonstrate that of the energy is considered a benchmark for actions. The perspective reconciling economic, social and consumed the organization’s business is systemic, complex and environmental development is in Brazil strategy and management. “We overarching. We must reach possible,” he adds. cannot be an island and say that we are doing our part merely by generating clean energy. We “We cannot be an island and say have to go further, embrace the 90 holistic vision the world demands that we are doing our part merely by socio- and act on it. We are a power generating clean energy. We have to environmental plant and a bi-national entity in actions go further, embrace the holistic vision connected to the MERCOSUL region. We act on the SDGs a number of realities and social, the world demands and act” were mapped economic and environmental Luiz Fernando Leone Vianna, by Itaipu fronts,” says Mr. Leone Vianna. Brazilian director-general of Itaipu Binacional 28 | GLOBAL COMPACT NETWORK BRAZIL

Challenges of integration in organizational strategies

greater challenge is defining the seeking to identify and evaluate Defining the SDG goals company’s targets in relation to the impact of their activities in and indicators are the the goals set out in the SDG. relation to the SDGs. biggest challenges for The results reveal that some The incorporation of 2030 surveyed companies companies seem to be in a Agenda in the corporate culture stage of greater maturity in the appears to be an important Among the most relevant strategic discussion of the 2030 stage for SDGs integration challenges to integrate the SDGs Agenda since, for 6 companies in an organization’s strategy. in organizational strategies is participating in the study, the CPFL Energia is a company defining the company’s goals in most relevant challenge at the that demonstrated to have relation to the SDGs. 15 of the moment is the definition of their consolidated actions in the companies surveyed reported own indicators to follow the sustainable development agenda greater difficulty in defining activities related to the SDGs. and seeks continuously to goals and indicators, of which On the other hand, 6 companies improve the development of its 9 of them reported that the demonstrate that they are still sustainability platform.

What are the most relevant challenges 9 for integrating the organizations answered: SDGs in the organization’s define our GOALS strategy? in relation to those specified by the SDGs

6 organizations answered: 6 identify organizations and evaluate answered: impactS define INDICATORS for activities relating to the SDGs INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 29

2030 Agenda: undertaken in the form of approximately R$ 14.8 million policies, goals and resource will be invested in the research. challenges allocation intended to benefit the and population” says Rodolfo. 9.4 The company also notes the opportunities million most difficult challenges of Pioneering implementing the SDGs in CPFL Energia pioneered a study customers its business. “A key critical CPFL Energia reports – in partnership with FEA-USP are served factor is obtaining the support of Ribeirão Preto – to identify the by CPFL and engagement of upper on the difficulties Energia, priority SDGs for its operation. management, a challenge and successes of corresponding implementing the SDG We have several actions that to more than successfully addressed by CPFL. contribute to fulfilling the SDGs 22 million Another factor is the issue of objectives,” notes. Rodolfo. people evaluating impacts and defining With more than 100 years of A highlight is the Solar Roof priorities along the entire value history, CPFL is engaged in Project developed in , chain,” remarks Rodolfo. every segment of the energy São Paulo, with the support sector: generation, transmission, of the Center for Research NEW CONSUMERS, distribution, commercialization and Development CPqD and NEW STRATEGIES and, energy solutions, which the University of Campinas 14.8 With an eye on new leads to 9,4 million clients, (UNICAMP). The objective is million conscientious and demanding being one of the leaders on the to establish a real laboratory consumers, the CPFL group reais segment of renewable energy for large-scale distributed will be also established Envo in 2017, in Brazil. As CPFL Energia’s generation of photovoltaic invested a company with expertise in sustainability director for over solar power. “Real data is in the Solar distributed generation. “Imagine a decade, Rodolfo Sirol heads being collected on the various Roof you could generate your up the company’s efforts applications and implications Project own energy using renewable to adopt – fulfill – the 2030 of the technology, enabling sources without impacting Agenda. “This encompasses study and detailed examination the environment,” challenges changes in language and the of the impacts of this type of Rodolfo. The firm acts in the need to work in partnerships, power generation,” says Rodolfo. stages of technical design, up to commitments deployment Initiated in 2014, a total of acquisition, and installation of solar panels and customer homologation with their local distributor. “Envo reinforces the expansion strategy for sustainable business and renewable energy,” concludes Rodolfo.

“A key critical factor for the companies is obtaining the support and engagement of uppermanagement, a challenge successfully addressed by CPFL” Rodolfo Sirol, director for sustainability at CPFL Energia 30 | GLOBAL COMPACT NETWORK BRAZIL

Internalizing knowledge about the SDGs

With regard to dissemination with customers and final of the 2030 Agenda and SDG consumers, while one Various forms of internal related practices, 45% of the company responded that it is communication can be employed to companies in the Brazilian incorporating the theme in its Electric Power Sector address interaction with suppliers and disseminate the SDGs in companies the issue in their internal third parties. communication tools, including When an organization aims to through email, brochure It is clear that the sector still internalize and disseminate and murals. Some of these has a long road to travel when new knowledge in its day-to- companies (10% of surveyed it is considered that 30% of day operations, redundant organizations) adopt measures the participating companies communications principles to incorporate the issue in have not yet planned how need to be planed and adopted, seminars and training programs disseminate knowledge of the using a diversity of means offered to collaborators. SDGs to their stakeholders. to strengthen the idea to be disseminated. The study revealed that 10% In this sense, the ludic solution of all companies strive to created by COPEL could serve disseminate this knowledge as an inspiration to other in their communications companies in the sector. How is the knowledge about SDGs internalized?

10% 30% In our external We have not yet communications Planned the with customers and/or internalization of final consumers this knowledge

10% Along with collaborators during training programs and seminars 45% Addressed in internal 5% communications (brochure, murals, In the interaction email etc.) and communication with suppliers and third-party contractors INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 31

LUDIC SOLUTION

COPEL creates a jigsaw puzzle to disseminate knowledge of the SDGs

COPEL – Companhia Paranaense de Energia was established in 1954, and 40 years later became the first company in the Brazilian Electric Power Sector to be listed on the New York Stock Exchange. The company serves 3.6 million households directly and 78,000 industrial firms, in addition to thousands of commercial with Paranacidade and the company and its supply chain, establishments. Its operations State Council for Economic and COPEL’s Environmental and encompass a power generation Social Development (CEDES), Social Responsibility Office team park composed of 30 plants official agencies of the Paraná 3.6 came up with a playful solution. and 11 shared facilities. The State Government. The Cities distribution system consists of Program involves multi-sector million “In 2017, we held online 195,000 km of transmission lines partnerships composed of households seminars throughout the state – the country’s third largest. government, companies, civil are served of Paraná for internal audiences society organizations and by COPEL and suppliers. We created a Pioneering universities to develop innovative gigantic jigsaw puzzle with COPEL’s involvement with projects and identify solutions the 17 SDGs in order to spur sustainability dates back to urban challenges. The everyone to think of corporate many years, according to the Program’s strategic references and individual goals,” recalls company’s chief executive are the Ten Principles of the Guetter. The objective is to officer, Antônio Sérgio de Global Compact and the 2030 195 replicate and multiply the Souza Guetter: “Because of Agenda for Sustainable thous. practice in 2018. “We want our historical responsibility Development,” he says. km to disseminate the game to the entire community,” he to sustainability, we accepted of transmission the enormous and inspiring INTERNALIZING lines make says. Anyone interested in challenge to coordinate the first KNOWLEDGE COPEL the third using the game can download Center of the Global Compact To address the challenge of largest energy the instructions at: Cities Program in the South disseminating and internalizing distributor https://goo.gl/GXtqHp. Region of Brazil, in partnership the 2030 Agenda in the in Brazil “As a pioneer company in sustainability, we believe we “We believe we can contribute to disseminating can contribute to disseminating the importance of the SDGs the importance of the SDGs to the society, companies to the society, companies and and individuals, highlighting the responsibility of each individuals, highlighting the and the power of partnerships to achieve the 2030 responsibility of each and the power of partnerships to achieve Agenda, the single most important global agenda” the 2030 Agenda, the single Antônio Sérgio de Souza Guetter, most important global agenda,” CEO of COPEL concludes Guetter. 32 | GLOBAL COMPACT NETWORK BRAZIL

Stakeholder understanding about the SDGs

The study also revealed that suppliers. Therefore, actions in the view of companies the aimed at the understanding customer and consumer group the SDGs throughout the supply The study revealed that have an average or below chain could be of high value upper management had the average knowledge of the 2030 at this point. highest understanding levels Agenda. This indicates that the of the 2030 Agenda SDGs implementation SDGs Among the surveyed in the sector could facilitate companies, EDP has been dissemination of the SDGs to listed for the longest time on the population, given the firms the Dow Jones Sustainability Among survey respondents, significant reach. Index (DJSI).5This fact could upper management (CEO and explain why its leaders Board of Directors) and leaders Another two group of demonstrated to have the (management) were the only stakeholders identified higher levels of understanding groups of internal stakeholders as having average to poor of the SDGs, according to the with an excellent level of knowledge of the 2030 Agenda survey respondents. knowledge on the SDGs. were critical and general

What is the level of understanding of your stakeholders (internal and external) on the SDGs in the UN’s 2030 Agenda?

Board of 10% 45% 40% 5% Directors

15% 45% 35% 5% CEO

Consumers 5% 40% 40% 15% and/or customers

All critical 60% 25% 15% suppliers

General 5% 40% 35% 20% suppliers

5% 15% 60% 10% 10% Management level internal audiences

General internal 10% 55% 25% 10% audiences

Excellent Good Average Below Average Poor INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 33

results, are now incorporated as part of the ‘Goals with Purpose’ program and encompass other dimensions, including people, customers, business partners, community and environment. EDP collaborators participated in developing this new course of action,” explains.

INVESTING IN CULTURE The purchase of the energy efficiency company APS in 2015 is one of the measures adopted by the company to achieve the 2020 EDP. “In 2016, we Inspiring company’s business culture, organized 15 projects, investing Agenda which established its own approximately R$ 20 million sustainability goals based on 3.3 and promoting a reduction it. “The EDP Group defined its of 45 GWh in consumption EDP engages its sustainability commitments million among our customers. In 2017, entire value chain in through the 2020 EDP Goals – a customers we sponsored more than 21 the commitment to set of targets and investments are served projects,” says the executive. sustainability aimed at generating economic by EDP On the social initiatives front, value, managing environmental in Brazil EDP opted to invest in culture A subsidiary of EDP Energias and climate issues, developing and the Portuguese language. de Portugal, one of the largest personnel and improving “We will invest R$ 20 million operators in the European reliability. In this context, EDP in three years to restore the energy sector, EDP Energias committed to the SDGs by 10 Portuguese Language Museum. do Brasil has been engaged in actively incorporating eight of years The Portuguese language is the power generation, distribution, the goals in its strategic agenda most precious assets Brazil and transmission, commercialization for growth and the generation 10 consecutive Portugal share. And the EDP years EDP has and electric power solutions of socio-environmental impact. Group, the largest Portuguese been listed segments since 2005. It EDP also maintains a number of on the company in operation in Brazil has assets in 12 states and projects that combine business Dow Jones has taken on the role of an distributes energy to 3.3 million growth and generation of Sustainability active agent in the preservation customers in the interior of São socio-environmental impacts, Index of this asset,” he reports. Paulo and Espírito Santo states. reinforcing its activities on behalf of sustainable For the past decade, EDP has development,” reports Pedro. been listed on the Dow Jones “The objectives of the company, which Sustainability Index and for ENGAGED MANAGERS in the past were more focused on the 12th consecutive year EDP’s executive office and financial results, are now incorporated on the B3 – formerly BM&F board of directors displayed the Bovespa – Sustainability Index highest level of understanding as part of the ‘Goals with Purpose’ (ISE), which recognizes the about the SDGs, according program and encompass other most sustainable companies to this survey results. Pedro dimensions, including people, in the world. According to Sigardo believes this is directly Pedro Sigardo, executive related to 2020 EDP. “The customers, business partners, manager of environment and objectives and goals of the community and environment” sustainability at EDP Brasil, company, which in the past Pedro Sigardo, executive manager of the 2030 Agenda is part of the were more focused on financial environment and sustainability at EDP Brasil 34 | GLOBAL COMPACT NETWORK BRAZIL

Moving beyond priorities: a systemic vision of the 2030 Agenda

Only one surveyed company is seeking to identify for their businesses. This data (70%) have demonstrated a impacts and indicators may raise some concern, to the willingness to evaluate the associated with all 17 SDGs extent that, as stated earlier, impacts of all SDGs but have it is essential that companies not done so yet, being that The survey revealed that consider the systemic nature 35% of companies are in the only one company plans to of the 2030 Agenda. The SDGs, planning stage, while another evaluate the impacts and after all, are interconnected and 35% intend to undertake the indicators related to the whole the action on any of these can evaluation, but have not yet 2030 Agenda, reflecting a have an impact on the others. kicked off the process. The significant level of maturity in its Despite the complexity involved, better understanding of how understanding of the indivisible an overall vision and full adoption companies at more mature nature of the 17 SDGs. Twenty- of the SDsG remain a challenge levels conduct this process, as in five percent of the respondents for companies in the sector. the case of Enel, could stimulate said they plan to identify positive this movement towards the and negative impacts associated The results also reveal that a assessment of the sector’s with only the most relevant SDGs large percentage of companies impacts on the SDGs.

Regarding your assessment process of positive and negative impacts:

We plan to identify ALL We plan to identify of the impacts and ONLY SOME indicators relating impacts and indicators to relevant SDGs for relating to relevant 35% the business SDGs for our business 25%

We We will identify intend to the impacts and identify the indicators for impacts, but have ALL 35% NOT YET 17 SDGs 5% done so INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 35

WITH AN EYE ON THE IMPACTS account one aspect of our AND VALUE CREATION industry that produces a negative impact, namely carbon emissions from traditional, non-renewable Enel is a pioneer in identifying launch of 2030 Agenda. “In power plants. By 2050, the negative business impacts for the alignment with the approach laid Enel Group aims to eliminate purposes of mitigating these and out in our Open Power strategy, all carbon emissions from our enhancing the company’s vision Enel has elevated environmental, businesses,” explains Marcia.

ALIGNED STRATEGY One of the key strategies implemented by Enel to fulfill the Agenda was the adoption of the Compass. “We are a holding company with operations in 29 countries and in each location, we are at different stages in the process of implementing the Compass, for being a dynamic and continuous effort. For purposes of step 4 (Integration), for example, we still have a lot of work do to, whereas for steps 2 (Defining Priorities), 3 (Establishing Targets) and 5 (Reporting and Communication) Enel is working in alignment through Enel is one of the largest social and economic the application of relevant 252 private companies in the sustainability to the center of its control and management tools,” Brazilian Electric Power corporate culture. The group’s tells Marcia. She concludes projects Sector. It engages along the strategic plan was deployed on by stating: “Increasingly, executed entire energy chain through the 17 sustainable development this should be the adopted by Enel in power generation, distribution, goals,” says Marcia Massotti, strategy to maintain ourselves 2017 are conversion, transmission and director of sustainability for the sustainable as a company.” connected commercialization activities, Enel Group in Brazil. to the SDGs in addition to energy solutions, delivered by Enel X. With assets LARGEST CHALLENGE “Enel placed in 12 states, including three “The 252 projects executed distribution facilities in Rio de by Enel in Brazil in 2017 are environmental, social and Janeiro, Ceará and Goiás, Enel benefiting more than 6.8 million economic sustainability delivers energy to approximately people today and are directly to the center of its 10 10 million customers. It operates linked to specific goals of the Brazil’s largest solar plant in the 2030 Agenda,” according to corporate culture and million state of Piauí and is among the Marcia. One of the company’s is implementing a customers three most important players in most important efforts in relation sustainable development are served the Brazilian wind power market. to the SDGs was identifying the by the potential negative impacts of its system based on shared company COMMITMENT business, an important first step value creation” in Brazil FROM THE START toward mitigation. “When we Marcia Massotti, The company’s commitment adopted SDG 13 (Climate Action) Director of sustainability at to the SDGs dates back to the as a commitment, we took into the Enel Group in Brazil 36 | GLOBAL COMPACT NETWORK BRAZIL

Public commitment to the SDGs

Half of all companies The study demonstrated that although way, and 15% have no plans of in the sector companies in the Brazilian electric committing themselves to the SDGs. power sector are at different stages with These figures emphasize the importance participate in respect to integration of the SDGd in their of this study as an incentive for this initiatives tied to the business strategies, they have endeavored discussion in the sector. SDGs as a form of to assume a public commitment to the 2030 Agenda. Half of all companies Given the importance of the electric power commitment to the responded that the path to this objective is sector for the fulfillment of 2030 Agenda, 2030 Agenda through participation in initiatives relating the hope is that this study will contribute to the issue, 20% include the SDGs in their to increased engagement by companies official and public documents, while 10% with the SDGs. Further, because of the intend to announce a public commitment importance of this discussion at the global to the SDGs as of 2018. level and the disastrous consequences due to its non-adoption in the long term, On the other hand, 5% still commit it is urgent that all companies in the themselves in an initial and unofficial sector commit to this agenda.

50% Has your company yes, participating already publicly committed in initiatives tied to to the SDGs? the issue 20% yes, including 15% it in official no, and public but it has been 10% company 5% included in no, documents yes, next year’s but at a and it has planning preliminary, not been unofficial foreseen way IINTEGRATION OF THE SDG IN THE BRAZILIAN ELECTRIC POWER SECTOR | 37

The SDGs in Business Analysis of associated impacts is the principal factor for identifying relevant SDGs for the companies How did the company select the most relevant SDGs? Took into account the SDGs with the 40% most associated impacts

Exclusively correlated material issues 20% from the materiality process to the SDGs

Incorporated the SDGs perspective 15% from the outset of the materiality process

Took into account SDGs offering 15% the most business opportunities My company has not yet identified the 10% most relevant SDGs for the business

Although companies are aware that the 2030 method used to identify relevant SDGs. Business Agenda requires a broad integrated vision of all of opportunities were cited as the strategy for the SDGs (UNGC, GRI, WBCSD, 2015),6 institutions determining the most significant of the 17 goals tend to select material themes based on their by 15% of companies. A small group of companies own strategies or sectorial regulations, due to the (15%) already considers the SDGs from the outset absence of standards and in the quest to generate of the materiality process; while a small portion of value for the company and its stakeholders the sample (10%) has not yet identified the most (ECCLES et al. 2012).7 relevant SDGs for their strategy.

The sample data reveal that impact analyses Guided by previous studies conducted by PwC is the method employed by 40% of companies (2015)8 and UNSDSN (2016),9 two workshops seeking to identify the most relevant SDGs. were proposed with the companies and experts This demonstrates companies’ concern with from the electric power sector. This way it the changes that the global sustainability was possible to understand the SDGs order agenda could potentially bring to the of relevance with respect to their impacts and business environment. opportunities. The final results of the survey and of the materiality discussion process of the SDGs For 20% of the companies, previously mapped in the Brazilian Electric Sector are shown in the material questions are the most common conclusion session of this material.

CON CLU SIO NS 40 | GLOBAL COMPACT NETWORK BRAZIL

Most relevant SDGs

Clean and affordable energy With respect to SDG 8 (Decent consumer behavior. Also, work and economic growth), with the growth in Brazilian is the SDG mainly taken into which appears in third place, energy demand, the pressure account by the sector questions in connection with to incorporate renewable the large infrastructure works sources provides an opportunity As expected, SDG 7 (Clean and affordable energy) required in the sector (power for creating new markets was ranked first among all the companies generation and transmission), and modernizing the sector. participating in the survey, both in terms of including the utilization of In turn, modernization of the business opportunities for the sector and the intensive labor and the risk sector serves to promote more sector’s relative impact in achieving the SDGs. The of fatal workplace accidents responsible consumption, which increased efforts to adopt renewable sources and involving maintenance workers also contributes, for its part, to the significant investments in clean technologies in the electric power sector, rising pressure from consumers projected in the coming years (UNDP, 201710; GRI represent a major concern for responsible production. This & UNDP, 201711) help explain the result. for companies in the Brazilian dynamic has been an important Electric Power Sector. factor underlying the adoption of The second most relevant was SDG 13 strategies to promote sustainable (Climate action). The result is due to two factors: Regarding the SDG 12 development in the sector and, first, the fact that the energy matrix is at the (Responsible consumption and consequently, in Brazil. All of center of current discussions about climate production), the sliding tariff the investments made by the change and, second, that the participating levels charged in the Brazilian sector in its quest to secure companies in the study are actively engaged in Electric Power Sector already gains in energy efficiency have all of the leading discussion forums on the issue, are an important enforcement contributed to more responsible principally the COPs. mechanism for modifying consumption and production.

The fifth most important SDG cited in the survey is SDG15 (Life Relevance of the SDGs to your company: on land). This SDG bases on 100% the need to conserve trees and SDG 7 wildlife in response to the large flooded areas created by Brazilian hydropower plants (generation) and individual trees that need to 60% 60% be cleared during construction of 55% SDG 8 SDG 13 45% SDG 12 transmission lines. SDG 15 The initial survey also indicated a strong emphasis on SDG 9 (Industry, innovation and infrastructure). The SDG with the least importance to companies in the Brazilian Electric Power Sector was SDG14 (Life below water), despite the impact of hydropower plants to freshwater ecosystems and the impacts of new offshore plants designed to use the energy from ocean waves to marine ecosystems. INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 41

SDGs hierarchy in the Brazilian Electric Power Sector with respect to business opportunities

opportuniTY

o Participants classified the 1 SDGs according to business opportunities in the sector

In the initial phase of the growth) and SDG12 (Responsible o survey, respondents were consumption and production), 2 asked to classify the 17 SDGs both of which were also listed according to the future business among the five most relevant opportunities each of these SDGs for the sector (see graph on represents to the company. the previous page). Therefore, the sector has already considered as A comparison of the five a focus of relevance the SDG with 3o highest ranked SDGs with the the most potential to generate SDGs companies identified business opportunities. as most relevant (see graph on the previous page) reveals Following discussion of the that the first two positions business opportunities raised are identical, with SDG 7 by the 2030 Agenda, the 4o (Clean and affordable energy) next step was to identify the appearing in the top spot and potential impacts of the electric SDG 13 (Climate action) in power sector. To this end, a second place. However, SDG second workshop was held 9 (Industry, innovation and with participating companies infrastructure), which was and experts in the sector for 5o not among the top five most the purpose of mapping the relevant SDGs, appears in most relevant SDGs for the the third slot of the future sector in terms of impacts, both business opportunities category, positive and negative, versus the indicating that companies in the business opportunities for the Brazilian Electric Power Sector Brazilian Electric Power Sector. are considering to invest in on the basis of the business innovation and infrastructure. The discussion produced the opportunities for the Brazilian materiality matrixes presented Electric Power Sector for The fourth and fifth most below. Due to the focus two subgroups: a group of important SDGs from the difference between the several companies engaged in activities standpoint of business companies that participated in centered on power generation opportunities were SDG 8 the survey, positive/negative and another group focused on (Decent work and economic impact matrixes were developed power distribution/transmission. 42 | GLOBAL COMPACT NETWORK BRAZIL

Positive and negative impacts Ensuring access to energy is the principal and opportunities positive impact for the sector power distribution/transmission companies Get to know the matrixes generated by this research

Positive Impact vs Opportunity

17 15 13 11 09 07 05 03 01

03

05

07

09

11

13 Positive impacts vs. opportunitieswith SDGs for in working impacts vs. Positive 15 POWER DISTRIBUTION / TRANSMISSION COMPANIES / TRANSMISSION DISTRIBUTION POWER

17

legend INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 43

The first quadrant of the matrixes sets impact), a total of six SDGs are located in out the SDG that represents both relevant the first quadrant of all produced matrixes: business opportunities and a high potential SDG 7 (Clean and affordable energy), SDG impact on society, constituting the 9 (Industry, innovation and infrastructure), quadrants on which our analysis is focused. SDG 8 (Decent work and economic growth), SDG 11 (Sustainable cities and For power distribution/ transmission companies, For the power distribution/transmission communities), SDG 12 (Responsible failure to ensure access to sector (positive or negative impact) and consumption and production) and SDG 13 energy could cause the for the power generation sector (positive (Climate action). largest negative impact

Negative impact vs Opportunity

17 15 13 11 09 07 05 03 01

03

05

07

09

11

13 Negative impacts vs. opportunitieswith SDG for in working impacts vs. Negative 15 POWER DISTRIBUTION / TRANSMISSION COMPANIES / TRANSMISSION DISTRIBUTION POWER

17 44 | GLOBAL COMPACT NETWORK BRAZIL

As stated above, the discussion in the The component that stood out in the first workshops stimulated participants matrix of the power generation segment to examine the power generation (positive impact vs. opportunity) was segment separately from the power SDG 6 (Clean water and sanitation). transmission/distribution segment. This can be explained by the fact that When analyzed in this manner, SDG 4 hydropower plants remain the foundation (Universal quality education) emerged of Brazil’s energy matrix. Also of note in For power generation companies, the largest as the highlight of the first power the power generation segment’s negative positive impact is transmission/distribution matrix impact vs. opportunity matrix was the ensuring clean and (positive impact vs. opportunity). inclusion of SDG 11 (Sustainable cities affordable energy

Positive Impact vs Opportunity

17 15 13 11 09 07 05 03 01

03

05

07

09

11

13 POWER GENERATION COMPANIES GENERATION POWER Positive impacts vs. opportunitieswith SDG for in working impacts vs. Positive

15

17

legend INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 45

and communities), SDG 7 (Clean and and Climate are the most relevant SDGs, affordable energy), SDG 6 (Clean water followed by Energy, Industry, Work and, and sanitation) and SDG 12 (Responsible lastly, Water and Education. consumption and production). The matrixes also set out the distribution The visualization of the four matrixes of those SDG deemed less relevant. provides a general overview of the SDGs in For purposes of this analysis, less The largest opportunity the Brazilian Electric Power Sector. There relevant means all of the SDG’s for mitigating is a significant consensus that in the energy concentrated in the quadrants below negative impact in sector as a whole, Cities, Consumption the midline, that is, point 8. power generation companies lies in ensuring sustainable cities and communities

Negative impact vs Opportunity

17 15 13 11 09 07 05 03 01

03

05

07

09

11

13 POWER GENERATION COMPANIES GENERATION POWER Negative impacts vs. opportunitieswith SDGs for in working impacts vs. Negative 15

17

AN N EX ES 48 | GLOBAL COMPACT NETWORK BRAZIL

The 169 Sustainable Development Goals (SDG)

and control over land and 2.1 By 2030, end hunger and other forms of property, ensure access by all people, inheritance, natural resources, in particular the poor and appropriate new technologies people in vulnerable situations, and finance services, including including infants, to safe, microfinances. nutritious and sufficient food all year round 1.5 By 2030, build the resilience of the poor and 2.2 By 2030, end all forms those in vulnerable situations of malnutrition, including and reduce their exposure achieving, by 2025, the and vulnerability to climate- internationally agreed targets 1.1 By 2030, eradicate related extreme events and on stunting and wasting in extreme poverty for all other economic, social and children under 5 years of age, people everywhere, currently environmental shocks and and address the nutritional measured as people living on disasters needs of adolescent, pregnant less than $1.25 a day and lactating women and older 1.a Ensure significant persons 1.2 By 2030, reduce at least mobilization of resources from by half the proportion of men, a variety of sources, including 2.3 By 2030, double the women and children of all through enhanced development agricultural productivity ages living in poverty in all cooperation, in order to provide and incomes of small-scale its dimensions according to adequate and predictable food producers, in particular national definitions means for developing countries, women, indigenous peoples, in particular least developed family farmers, pastoralists 1.3 Implement nationally countries, to implement and fishers, including through appropriate social protection programmes and policies to end secure and equal access systems and measures for all, poverty in all its dimensions to land, other productive including floors, and by 2030 resources and inputs, achieve substantial coverage of 1.b Create sound policy knowledge, financial services, the poor and the vulnerable frameworks at the national, markets and opportunities for regional and international value addition and non-farm 1.4 By 2030, ensure that all levels, based on pro-poor and employment men and women, in particular gender-sensitive development the poor and the vulnerable, strategies, to support 2.4 By 2030, ensure sustainable have equal rights to economic accelerated investment in food production systems and resources, as well as access poverty eradication actions implement resilient agricultural to basic services, ownership INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 49

practices that increase 2.c Adopt measures to ensure productivity and production, the proper functioning of food that help maintain ecosystems, commodity markets and their that strengthen capacity for derivatives and facilitate timely adaptation to climate change, access to market information, extreme weather, drought, including on food reserves, in flooding and other disasters and order to help limit extreme food that progressively improve land price volatility and soil quality

2.5 By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and domesticated animals and their related wild species, including through soundly managed and diversified seed and plant banks at the national, regional and 3.4 By 2030, reduce by one-third international levels, and promote premature mortality from non- access to and fair and equitable communicable diseases through sharing of benefits arising prevention and treatment and from the utilization of genetic promote mental health and resources and associated well-being traditional knowledge, as internationally agreed 3.5 Strengthen the prevention and treatment of substance 2.a Increase investment, abuse, including narcotic drug including through enhanced abuse and harmful use of alcohol international cooperation, in rural infrastructure, 3.1 By 2030, reduce the global 3.6 By 2020, halve the number agricultural research and maternal mortality ratio to less of global deaths and injuries extension services, technology than 70 per 100,000 live births from road traffic accidents development and plant and livestock gene banks in order to 3.2 By 2030, end preventable 3.7 By 2030, ensure enhance agricultural productive deaths of newborns and universal access to sexual capacity in developing children under 5 years of age, and reproductive health-care countries, in particular least with all countries aiming to services, including for family developed countries reduce neonatal mortality to at planning, information and least as low as 12 per 1,000 live education, and the integration of 2.b Correct and prevent trade births and under-5 mortality to reproductive health into national restrictions and distortions in at least as low as 25 per 1,000 strategies and programmes world agricultural markets, live births including through the parallel 3.8 Achieve universal health elimination of all forms of 3.3 By 2030, end the epidemics coverage, including financial agricultural export subsidies of AIDS, tuberculosis, malaria risk protection, access to quality and all export measures with and neglected tropical diseases essential health-care services equivalent effect, in accordance and combat hepatitis, water- and access to safe, effective, with the mandate of the Doha borne diseases and other quality and affordable essential Development Round communicable diseases medicines and vaccines for all 50 | GLOBAL COMPACT NETWORK BRAZIL

3.9 By 2030, substantially skills, including technical reduce the number of deaths and vocational skills, for and illnesses from hazardous employment, decent jobs and chemicals and air, water and entrepreneurship soil pollution and contamination 4.5 By 2030, eliminate gender 3.a Strengthen the disparities in education implementation of the World and ensure equal access to Health Organization Framework all levels of education and Convention on Tobacco Control vocational training for the in all countries, as appropriate vulnerable, including persons with disabilities, indigenous 3.b Support the research and peoples and children in development of vaccines and vulnerable situations medicines for the communicable and non-communicable diseases 4.6 By 2030, ensure that that primarily affect developing all youth and a substantial countries, provide access to proportion of adults, both men affordable essential medicines and women, achieve literacy and vaccines, in accordance with and numeracy the Doha Declaration on the TRIPS Agreement and Public 4.7 By 2030, ensure that Health, which affirms the right all learners acquire the of developing countries to use knowledge and skills needed to the full the provisions in the to promote sustainable Agreement on Trade-Related development, including, among Aspects of Intellectual Property others, through education Rights regarding flexibilities to 4.1 By 2030, ensure that all for sustainable development protect public health, and, in girls and boys complete free, and sustainable lifestyles, particular, provide access to equitable and quality primary human rights, gender equality, medicines for all and secondary education promotion of a culture of leading to relevant and effective peace and non-violence, global 3.c Substantially increase learning outcomes citizenship and appreciation health financing and the of cultural diversity and of recruitment, development, 4.2 By 2030, ensure that all culture’s contribution to training and retention of the girls and boys have access sustainable development health workforce in developing to quality early childhood countries, especially in the least development, care and pre- 4.A Build and upgrade developed countries and small primary education so that they education facilities that are island developing States are ready for primary education child, disability and gender sensitive and provide safe, non- 3.d Strengthen the capacity 4.3 By 2030, ensure equal violent, inclusive and effective of all countries, in particular access for all women and learning environments for all developing countries, for early men to affordable and quality warning, risk reduction and technical, vocational and 4.B By 2020, substantially management of national and tertiary education, including expand globally the number global health risks university of scholarships available to developing countries, in 4.4 By 2030, substantially particular least developed increase the number of youth countries, small island and adults who have relevant developing States and INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 51

African countries, for 5.4 Recognize and value enrolment in higher education, unpaid care and domestic including vocational training work through the provision of and information and public services, infrastructure communications technology, and social protection policies technical, engineering and and the promotion of shared scientific programmes, in responsibility within the developed countries and other household and the family as developing countries nationally appropriate

4.c By 2030, substantially 5.5 Ensure women’s full increase the supply of qualified and effective participation teachers, including through and equal opportunities for international cooperation for leadership at all levels of teacher training in developing decision-making in political, countries, especially least economic and public life developed countries and small island developing States 5.6 Ensure universal access to sexual and reproductive health and reproductive rights as agreed in accordance with the Programme of Action of the International Conference on Population and Development and the Beijing Platform for Action and the outcome documents of their review conferences

5.A Undertake reforms to 6.1 By 2030, achieve universal give women equal rights and equitable access to safe and to economic resources, as affordable drinking water for all well as access to ownership and control over land and 6.2 By 2030, achieve access other forms of property, to adequate and equitable financial services, inheritance sanitation and hygiene for all 5.1 End all forms of and natural resources, in and end open defecation, paying discrimination against all accordance with national laws special attention to the needs women and girls everywhere of women and girls and those in 5.B Enhance the use of enabling vulnerable situations 5.2 Eliminate all forms of technology, in particular violence against all women and information and communications 6.3 By 2030, improve water girls in the public and private technology, to promote the quality by reducing pollution, spheres, including trafficking empowerment of women eliminating dumping and and sexual and other types of minimizing the release exploitation 5.C Adopt and strengthen of hazardous chemicals sound policies and enforceable and materials, halving the 5.3 Eliminate all harmful legislation for the promotion proportion of untreated practices, such as child, early of gender equality and the wastewater and substantially and forced marriage and female empowerment of all women increasing recycling and safe genital mutilation and girls at all levels reuse globally 52 | GLOBAL COMPACT NETWORK BRAZIL

6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity

6.5 By 2030, implement integrated water resources management at all levels, including through transboundary cooperation as appropriate

6.6 By 2020, protect and restore water-related 7.1 By 2030, ensure universal ecosystems, including access to affordable, reliable mountains, forests, wetlands, and modern energy services rivers, aquifers and lakes 7.2 By 2030, increase 6.a By 2030, expand international substantially the share of cooperation and capacity-building renewable energy in the global support to developing countries energy matrix in water- and sanitation-related activities and programmes, 7.3 By 2030, double the global including water harvesting, rate of improvement in energy desalination, water efficiency, efficiency wastewater treatment, recycling and reuse technologies 7.A By 2030, enhance international cooperation 6.b Support and strengthen to facilitate access to the participation of local clean energy research and communities in improving water technology, including renewable and sanitation management energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology

7.B By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, 8.1 Sustain per capita economic in particular least developed growth in accordance with countries, small island national circumstances and, in developing States, and land- particular, at least 7 percent locked developing countries, in of gross domestic product accordance with their respective growth per annum in the least programmes of support developed countries INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 53

8.2 Achieve higher levels of soldiers, and by 2025 end child economic productivity through labour in all its forms diversification, technological upgrading and innovation, 8.8 Protect labour rights and including through a focus on promote safe and secure high-value added and labour- working environments for all intensive sectors workers, including migrant workers, in particular women 8.3 Promote development- migrants, and those in oriented policies that support precarious employment productive activities, decent job creation, entrepreneurship, 8.9 By 2030, devise and creativity and innovation, and implement policies to promote encourage the formalization sustainable tourism that creates and growth of micro-, small- jobs and promotes local culture and medium-sized enterprises, and products including through access to financial services. 8.10 Strengthen the capacity of 9.1 Developquality, reliable, domestic financial institutions to sustainable and resilient 8.4 Improve progressively, encourage and expand access to infrastructure, including regional through 2030, global resource banking, insurance and financial and transborder infrastructure, efficiency in consumption and services for all to support economic production and endeavour to development and human well- decouple economic growth from 8.A Increase Aid for Trade being, with a focus on affordable environmental degradation, in support for developing countries, and equitable access for all accordance with the 10-year in particular least developed framework of programmes on countries, including through the 9.2 Promote inclusive and sustainable consumption and Enhanced Integrated Framework sustainable industrialization production, with developed for Trade-Related Technical and, by 2030, significantly raise countries taking the lead Assistance to Least Developed industry’s share of employment Countries and gross domestic product, in 8.5 By 2030, achieve full line with national circumstances, and productive employment 8.B By 2020, develop and and double its share in least and decent work for all women operationalize a global strategy developed countries and men, including for young for youth employment and people and persons with implement the Global Jobs 9.3 Increase the access of disabilities, and equal pay Pact of the International small-scale industrial and other for work of equal value Labour Organization enterprises, in particular in developing countries, to financial 8.6 By 2020, substantially services, including affordable reduce the proportion of youth credit, and their integration into not in employment, education value chains and markets or training 9.4 By 2030, upgrade 8.7 Take immediate and infrastructure and retrofit effective measures to eradicate industries to make them forced labour, end modern sustainable, with increased slavery and human trafficking resource-use efficiency and secure the prohibition and greater adoption of and elimination of the worst clean and environmentally forms of child labour, including sound technologies and recruitment and use of child industrial processes 54 | GLOBAL COMPACT NETWORK BRAZIL

9.5 Enhance scientific research, 10.5 Improve the regulation and upgrade the technological monitoring of global markets capabilities of industrial sectors and financial institutions and in all countries, in particular strengthen the implementation developing countries, including, of such regulations by 2030, encouraging innovation and substantially increasing 10.6 Ensure enhanced the number of research and representation and voice development workers per for developing countries in 1 million people and public decision-making in global and private research and international economic and development spending financial institutions in order to deliver more effective, 9.A Facilitate sustainable credible, accountable and and resilient infrastructure legitimate institutions development in developing countries through enhanced 10.7 Facilitate orderly, safe, financial, technological and regular and responsible technical support to African migration and mobility of countries, least developed people, including through countries, landlocked developing the implementation of countries and small island planned and well-managed developing States migration policies

9.B Support domestic 10.A Implement the principle technology development, of special and differential research and innovation in 10.1 By 2030, progressively treatment for developing developing countries, including achieve and sustain income countries, in particular least by ensuring a conducive policy growth of the bottom 40 percent developed countries, in environment for, inter alia, of the population at a rate higher accordance with World Trade industrial diversification and than the national average Organization agreements value addition to commodities 10.2 By 2030, empower and 10.B Encourage official 9.C Significantly increase promote the social, economic development assistance and access to information and and political inclusion of all, financial flows, including foreign communications technology irrespective of age, sex, disability, direct investment, to States and strive to provide universal race, ethnicity, origin, religion or where the need is greatest, and affordable access to the economic or other status in particular least developed Internet in least developed countries, African countries, countries by 2020 10.3 Ensure equal opportunity small island developing States and reduce inequalities of and landlocked developing outcome, including by eliminating countries, in accordance discriminatory laws, policies with their national plans and practices and promoting and programmes appropriate legislation, policies and action in this regard 10.C By 2030, reduce to less than 3 percent the transaction 10.4 Adopt policies, especially costs of migrant remittances fiscal, wage and social protection and eliminate remittance policies, and progressively corridors with costs higher achieve greater equality than 5 percent INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 55

11.3 By 2030, enhance inclusive efficiency, mitigation and and sustainable urbanization adaptation to climate change, and capacity for participatory, resilience to disasters, and integrated and sustainable develop and implement, in line human settlement planning and with the Sendai Framework management in all countries for Disaster Risk Reduction 2015-2030, holistic disaster risk 11.4 Strengthen efforts to management at all levels protect and safeguard the world’s cultural and natural heritage 11.C Support least developed countries, including through 11.5 By 2030, significantly financial and technical reduce the number of deaths assistance, in building and the number of people sustainable and resilient affected and substantially buildings utilizing local materials decrease the direct economic losses relative to global gross domestic product caused by disasters, including water- related disasters, with a focus on protecting the poor and people in vulnerable situations

11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management

11.7 By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and 11.1 By 2030, ensure access persons with disabilities for all to adequate, safe and affordable housing and basic 11.A Support positive economic, services and urbanize slums social and environmental links between urban, peri-urban and 11.2 By 2030, provide access rural areas by strengthening to safe, affordable, accessible national and regional and sustainable transport development pl systems for all, improving road safety, notably by expanding 11.B By 2020, substantially public transport, with special increase the number of cities attention to the needs of and human settlements those in vulnerable situations, adopting and implementing women, children, persons with integrated policies and plans disabilities and older persons towards inclusion, resource 56 | GLOBAL COMPACT NETWORK BRAZIL

12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle

12.7 Promote public procurement practices that are sustainable, in accordance with national policies and priorities

12.8 By 2030, ensure that people everywhere have the relevant information and 12.1 Implement the 10-year awareness for sustainable framework of programmes development and lifestyles in on sustainable consumption harmony with nature and production, all countries taking action, with developed 12.A Support developing countries taking the lead, countries to strengthen their taking into account the scientific and technological development and capabilities of capacity to move towards developing countries more sustainable patterns of consumption and production 12.2 By 2030, achieve the 13.1 Strengthen resilience and sustainable management and 12.B Develop and implement adaptive capacity to climate- efficient use of natural resources tools to monitor sustainable related hazards and natural development impacts for disasters in all countries 12.3 By 2030, halve per capita sustainable tourism that global food waste at the retail creates jobs and promotes local 13.2 Integrate climate change and consumer levels and reduce culture and products measures into national policies, food losses along production strategies and planning and supply chains, including 12.C Rationalize inefficient post-harvest losses fossil-fuel subsidies 13.3 Improve education, that encourage wasteful awareness-raising and human 12.4 By 2020, achieve the consumption by removing and institutional capacity on environmentally sound market distortions, in climate change mitigation, management of chemicals accordance with national adaptation, impact reduction and all wastes throughout circumstances, including by and early warning their life cycle, in accordance restructuring taxation and with agreed international phasing out those harmful 13.A Implement the frameworks, and significantly subsidies, where they exist, commitment undertaken by reduce their release to air, water to reflect their environmental developed-country parties to and soil in order to minimize impacts, taking fully into the United Nations Framework their adverse impacts on human account the specific needs Convention on Climate Change to health and the environment and conditions of developing a goal of mobilizing jointly $100 countries and minimizing the billion annually by 2020 from all 12.5 By 2030, substantially possible adverse impacts on sources to address the needs reduce waste generation their development in a manner of developing countries in the through prevention, reduction, that protects the poor and the context of meaningful mitigation recycling and reuse affected communities actions and transparency on INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 57

implementation and fully 14.1 By 2025, prevent and that appropriate and effective operationalize the Green Climate significantly reduce marine special and differential Fund through its capitalization pollution of all kinds, in treatment for developing and as soon as possible particular from land-based least developed countries activities, including marine should be an integral part of 13.b Promote mechanisms for debris and nutrient pollution the World Trade Organization raising capacity for effective fisheries subsidies negotiation climate change-related 14.2 By 2020, sustainably planning and management manage and protect marine 14.7 By 2030, increase the in least developed countries and coastal ecosystems to economic benefits to Small and small island developing avoid significant adverse Island developing States and States, including focusing on impacts, including by least developed countries women, youth and local and strengthening their resilience, from the sustainable use of marginalized communities and take action for their marine resources, including restoration in order to achieve through sustainable * Acknowledging that the healthy and productive oceans management of fisheries, United Nations Framework aquaculture and tourism Convention on Climate Change 14.3 Minimize and address the is the primary international, impacts of ocean acidification, 14.A Increase scientific intergovernmental forum for including through enhanced knowledge, develop research negotiating the global response scientific cooperation at all levels capacity and transfer marine to climate change. technology, taking into 14.4 By 2020, effectively account the Intergovernmental regulate harvesting and end Oceanographic Commission overfishing, illegal, unreported Criteria and Guidelines on the and unregulated fishing and Transfer of Marine Technology, destructive fishing practices in order to improve ocean health and implement science-based and to enhance the contribution management plans, in order of marine biodiversity to the to restore fish stocks in the development of developing shortest time feasible, at least countries, in particular small to levels that can produce island developing States and maximum sustainable yield as least developed countries determined by their biological characteristics 14.B Provide access for small- scale artisanal fishers to marine 14.5 By 2020, conserve at resources and markets least 10 percent of coastal and marine areas, consistent with 14.C Enhance the conservation national and international law and sustainable use of and based on the best available oceans and their resources by scientific information implementing international law as reflected in UNCLOS, 14.6 By 2020, prohibit which provides the legal certain forms of fisheries framework for the conservation subsidies which contribute to and sustainable use of oceans overcapacity and overfishing, and their resources, as recalled eliminate subsidies that in paragraph 158 of The contribute to illegal, unreported Future We Want and unregulated fishing and refrain from introducing new such subsidies, recognizing 58 | GLOBAL COMPACT NETWORK BRAZIL

15.6 Promote fair and equitable sharing of the benefits arising from the utilization of genetic resources and promote appropriate access to such resources, as internationally agreed

15.7 Take urgent action to end poaching and trafficking of protected species of flora and fauna and address both 15.1 By 2020, ensure the demand and supply of illegal conservation, restoration and wildlife products sustainable use of terrestrial and inland freshwater ecosystems 15.8 By 2020, introduce and their services, in particular measures to prevent the forests, wetlands, mountains and introduction and significantly drylands, in line with obligations reduce the impact of invasive under international agreements alien species on land and water ecosystems and control or 15.2 By 2020, promote the eradicate the priority species implementation of sustainable management of all types of 15.9 By 2020, integrate forests, halt deforestation, ecosystem and biodiversity restore degraded forests values into national and and substantially increase local planning, development afforestation and processes, poverty reduction reforestation globally strategies and accounts

15.3 By 2030, combat 15.A Mobilize and significantly desertification, restore degraded increase financial resources land and soil, including land from all sources to conserve affected by desertification, and sustainably use biodiversity drought and floods, and strive and ecosystems to achieve a land degradation- neutral world 15.B Mobilize significant resources from all sources and at 15.4 By 2030, ensure the all levels to finance sustainable conservation of mountain forest management and ecosystems, including their provide adequate incentives to biodiversity, in order to enhance developing countries to advance their capacity to provide such management, including for benefits that are essential conservation and reforestation for sustainable development 16.1 Significantly reduce all 15.C Enhance global support for forms of violence and related 15.5 Take urgent and significant efforts to combat poaching and death rates everywhere action to reduce the degradation trafficking of protected species, of natural habitats, halt the including by increasing the 16.2 End abuse, exploitation, loss of biodiversity and, by capacity of local communities trafficking and all forms 2020, protect and prevent the to pursue sustainable of violence and torture extinction of threatened species livelihood opportunities against children INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 59

16.3 Promote the rule of law 17.5 Adopt and implement at the national and international investment promotion regimes levels and ensure equal access for least developed countries to justice for all 17.6 Enhance North-South, 16.4 By 2030, significantly South-South and triangular reduce illicit financial and arms regional and international flows, strengthen the recovery cooperation and access and return of stolen assets to science, technology and and combat all forms of innovation and enhance organized crime knowledge sharing on mutually agreed terms, including 16.5 Substantially reduce through improved coordination corruption and bribery in all among existing mechanisms, their forms 17.1 Strengthen domestic in particular at the United resource mobilization, including Nations level, and through a 16.6 Develop effective, through international support to global technology facilitation accountable and transparent developing countries, to improve mechanism institutions at all levels domestic capacity for tax and other revenue collection 17.7 Promote the development, 16.7 Ensure responsive, transfer, dissemination and inclusive, participatory and 17.2 Developed countries to diffusion of environmentally representative decisio n-making implement fully their official sound technologies to at all levels development assistance developing countries on commitments [ODA], including favourable terms, including on 16.8 Broaden and strengthen the commitment by many concessional and preferential the participation of developing developed countries to achieve terms, as mutually agreed countries in the institutions of the target of 0.7 percent of global governance gross national income [GNI] 17.8 Fully operationalize the for ODA to developing countries technology bank and science, 16.9 By 2030, provide legal and 0.15 to 0.20 percent to technology and innovation identity for all, including birth least developed countries; capacity-building mechanism registration ODA providers are encouraged for least developed countries to consider setting a target to by 2017 and enhance the 16.10 Ensure public access provide at least 0.20 percent use of enabling technology, to information and protect of GNI for ODA to least in particular information and fundamental freedoms, in developed countries communications technology accordance with national legislation and international 17.3 Mobilize additional financial agreements resources for developing countries from multiple sources 16.A Strengthen relevant national institutions, including through 17.4 Assist developing international cooperation, for countries in attaining long-term building capacity at all levels, in debt sustainability through particular in developing countries, coordinated policies aimed at to prevent violence and combat fostering debt financing, debt terrorism and crime relief and debt restructuring, as appropriate, and address 16.B Promote and enforce non- the external debt of highly discriminatory laws and policies indebted poor countries to for sustainable development reduce debt distress

62 | GLOBAL COMPACT NETWORK BRAZIL

Footnotes

1 - CALDANA, A.C.F. Desafios e oportunidades 8 - PwC (2015) Make it your business: engaging da adoção dos Objetivos de Desenvolvimento with the Sustainable Development Goals. Sustentável nas empresas: evidências do Disponível em: https://www.pwc.com/gx/en/ setor elétrico brasileiro. 2018. Dissertation sustainability/SDG/SDG%20Research_FINAL.pdf (Doctorate) – School of Economics, Business Administration and Accounting of Ribeirão Preto, 9 - UNSDSN (2016) Mapping mining to the University of São Paulo, Ribeirão Preto, 2018. Sustainable Development Goals: an atlas. Disponível em: http://unsdsn.org/wp-content/ 2 - ABRADEE (2018) Visão geral do setor. uploads/2016/11/Mapping_Mining_SDGs_An_ Available at:: http://www.abradee.com.br/setor- Atlas.pdf eletrico/visao-geral-do-setor 10 - UNDP (2017) Blueprint for business 3 - TOLMASQUIM, M.T.; GUERREIRO, A.; GORINI, leadership on the SDGs: a principles-based R. Matriz energética brasileira: uma prospectiva. approach. Disponível em: https://www. Novos Estudos - CEBRAP, n. 79, 2007. unglobalcompact.org/docs/publications/Blueprint- for-Business-Leadership-on-the-SDGs.pdf 4 - JANNUZZI, G. de M. Power sector reforms in Brazil and its impacts on energy efficiency and 11 - GRI & UNDP (2017) Reporting on the SDGs: research and development activities. Energy an analysis of the goals and targets. Disponível Policy, v. 33, p. 1753-1762, 2005. em: https://www.unglobalcompact.org/docs/ publications/GRI_UNGC_SDG_Reporting_An_ 5 - EDP (2017) Dimensão econômica: Analysis_of_Goals_and_Targets_2017.pdf desempenho de sustentabilidade. Disponível em: https://www.edp.com/pt-pt/sustentabilidade/ 12 - BUSINESS AND SUSTAINABLE dimensao-economica/indices-csr/indice-dow- DEVELOPMENT COMMISSION (2017). Better jones business, better world: the report of the Business & Sustainable Development 6 - UNGC; GRI; WBCSD. SDG Compass: the Commission. Disponível em: http://report. guide for business action on the SDGs. businesscommission.org/uploads/BetterBiz- Sept/2015. Disponível em: . Acesso em: 22 out. 2015.

7 - ECCLES, Robert G. et al. The need for sector- -specific materiality and sustainability reporting standards. Journal of Applied Corporate Finance, v. 24, n. 2, p. 65-71, 2012. INTEGRATION OF THE SDGs IN THE BRAZILIAN ELECTRIC POWER SECTOR | 63

Supporting sites and tools for organizations

Global Compact Network Brazil Make it your business: Engaging with the http://www.pactoglobal.org.br/ Sustainable Development Goals (PWC) https://www.pwc.com/gx/en/ United Nations Brazil (UNBR) sustainability/SDG/SDG Research_ https://nacoesunidas.org/pos2015/ FINAL.pdf

Sdg Compass – Diretrizes para Global Opportunity Report 2016 Implementação dos ODS para Empresas http://globalopportunitynetwork.org/the- https://drive.google.com/file/ 2016-global-opportunity-report.pdf d/0BzeogYNFvEqycU5sS3FvT0VRdlE/view Questionário do Índice de Integração dos ODS na estratégia Sustentabilidade Empresarial da empresarial – Contribuições do CBPG BM&FBovespa, Dimensão Geral para a Agenda 2030 http://isebvmf.com.br/index.php?r=site/ https://drive.google.com/file/ conteudo&id=107 d/0BzeogYNFvEqybDkyVkkwcV9xbjQ/view Benchmarking do Investimento Social Sustainable Development Knowledge Corporativo (BISC) Platform http://comunitas.org/bisc/ https://sustainabledevelopment.un.org/ Sistema Financeiro Nacional e a Negociações da agenda de Economia Verde (GV Ces and Febraban) desenvolvimento pós-2015: elementos http://mediadrawer.gvces.com.br/ orientadores da posição brasileira publicacoes/original/1_febraban_ http://www.itamaraty.gov.br/images/ portugues_ev.pdf ed_desenvsust/ODS-pos-bras.pdf Guia para a Emissão de Títulos Verdes SDG Industry Matrix no Brasil 2016 (Febraban Cebds) https://www.unglobalcompact.org/ https://cmsportal.febraban.org.br/ library/3111 Arquivos/documentos/PDF/Guia_ emissão_títulos_verdes_PORT.pdf Estratégia ODS http://www.estrategiaods.org.br/ WWF Living Planet Report 2016 estrategia-ods/ http://awsassets.panda.org/downloads/ lpr_living_planet_report_2016_ The Future of Spaceship Earth summary.pdf (DNV GL, Global Compact and MondayMorning – Global Institute) Aichi Targets of the Convention on https://www.dnvgl.com/technology- Biological Diversity (CDB) innovation/spaceship-earth/ https://www.cbd.int/sp/targets/ Brasil em Síntese, IBGE Relatório Anual 2017 EDP http://brasilemsintese.ibge.gov.br/ http://www.edp.com.br/conheca-edp/ relatorios/Documents/RA_2017_Vf.pdf Global Footprint Network http://www.footprintnetwork.org/ Relatório de Sustentabilidade Copel https://goo.gl/2qePGo State of The Market 2016 – Climate Bonds Initiative Relatórios Anuais CPFL https://www.climatebonds.net/files/ https://www.cpfl.com.br/institucional/ files/reports/cbi-hsbc-state-of-the- relatorioanual/Paginas/default.aspx market-2016.pdf ENEL Sustentabilidade na Itaipu https://www.enel.com.br/ https://www.itaipu.gov.br/institucional/ sustentabilidade#node-6006 Relatório de Sustentabilidade ENEL https://www.enel.com.br/content/ Nossa missão – Itaipu dam/enel-br/quemsomos/relatorios- https://www.itaipu.gov.br/institucional/ anuais/2016/35_ENEL_relatorio2016_ missao SIMPLES_tr.pdf

ODS no Oeste do Paraná – Parceria Itaipu e PNUD http://www.br.undp.org/content/ brazil/pt/home/presscenter/ articles/2017/08/03/pnud-iniciaprojeto- de--o-dos-ods-no-oeste- doparan-.html

www.pactoglobal.org.br www.unglobalcompact.org