Sustainability Report 2014
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SUSTAINABILITY REPORT 2014 HEAD OFFICE (RJ) 5 Company profile 6 Furnas Centrais Elétricas 8 Generation and transmission system 10 Furnas' highlights 12 Market context 16 Message from Management 18 Corporate Governance 19 Transparency in management 23 Ethical behavior 24 Risk management 26 Stakeholder relations 30 Strategy and management 36 Resumption of growth 43 Research, Development and Innovation - R&D+I 45 Operating performance 46 Generation 47 Transmissão 49 Energy sales 50 Services sales 51 Economic-financial performance 52 Results 56 Statement of Added Value 57 Personnel management 67 Supplier management 70 Social performance 74 Social investments 77 Environmental performance 86 About the report 89 Appendices 90 Furnas’ Assets 93 SPE Shareholding Breakdown 98 Additional GRI indicators 111 Abbreviations and acronyms 113 Social Balance Sheet 115 GRI G4 Content Index 123 Corporate information Contents 4 FURNAS SUSTAINABILITY REPORT 2014 Vision, Mission and Values |GRI G4‑56| Furnas bases its business activities on internationally recognized core values, with respect for human rights and labor relations, environmental conservation and combating corruption. The revision of Furnas’ Strategic Plan, based upon the Company’s restructuring process, is defined in the following strategic guidelines: Vision of the future To be the largest and most successful Brazilian agent in the electricity industry. Mission To act within the highest standards of business excellence and social and environmental responsibility in the electricity industry, contributing to society's development. Values Its actions and management must observe the following principles: ▙ Give people their due value, recognizing that the Company’s labor force is one of its most valuable assets; ▙ Function as a network, with plurality and cooperation; ▙ Focus on results, taking into account the impact of all of its actions on the Company; ▙ Adaptability, developing the capacity to change in step with the business environment; ▙ Sustainability, operating with economic, social and environmental responsibility; ▙ Transparency, through permanent interaction with society to meet its needs and in the disclosure of its business results; ▙ Entrepreneurial spirit, pro-actively overcoming challenges. COMPANY PROFILE HPP FURNAS (MG) FURNAS HPP Company profile 6 FURNAS SUSTAINABILITY REPORT 2014 COMPANY PROFILE Furnas Centrais Elétricas ┋ resent in 15 states of Brazil three transmission lines (its own and and the Federal District, Furnas two through Specific Purpose Entities Centrais Elétricas is active in the (SPEs), and five substations (its own and generation, transmission and four SPEs). Moreover, Furnas brought 63% Psale of electricity, operating a structure wind energy into its portfolio with the of Brazilian through which more than 40% of all startup of three wind farms, with another energy consumed by Brazilians passes. 46 currently under construction by the households Its facilities are found in all regions of company and its partners in the country's Brazil, ensuring power supply to an area Northeast region. |GRI G4‑13| receive electricity that encompasses 63% of the country’s transmitted households and activities that represent During the year, the company became 81% of its Gross Domestic Product (GDP). involved in new transmission projects. through Furnas' |GRI G4‑3, G4‑4, G4‑6, G4‑8| The highlight was its participation in the 800 kV direct current transmission structure Founded on February 28, 1957, Furnas is a line now under construction in the mixed economy, private capital company state of Pará through which power ┅ whose main shareholder is Centrais that is produced by the Belo Monte Elétricas Brasileiras S.A. – Eletrobras. It Hydroelectric Station will flow to the was established to build and operate Southeast. It also won the auction for the Furnas Hydroelectric Power Station, the provision of operation and mainte- the first large plant in Brazil, in Minas nance (O&M) services for the HPP Três Gerais state, together with an associated Irmãos project in São Paulo. In Special transmission system linking the states Administration Projects, three Small of Minas Gerais, São Paulo and Rio de Hydro Power Plants (SHPs) in operation Janeiro. |GRI G4‑7| have been incorporated into its portfolio: Neblina, Sinceridade and Dona Rita. Its installations include generation |GRI G4‑13| facilities with 27 power stations, either owned by the company or in partnership Furnas invested R$ 2,308 million in 2014, with the private sector, including hydro, of which R$ 849 million was earmarked thermal and wind projects and totaling for its own projects and R$ 1,459 million 14,629 MW installed capacity. Of this went to SPEs in which it has ownership total, 10,878 MW belongs to Furnas. In interests. the transmission segment, the company has 24,140 km of lines, of which 4,233 km Energy production totaled 42,186 GWh, of are partnerships. Furthermore, there are which 25,149 GWh were generated by its 68 substations with total transformation own power plants, affected or not by Law capacity of 118,243 MVA, built with its own 12.783/2013, and 17,037 GWh, generated funds or in partnership with the private by plants in which Furnas holds stakes. sector. |GRI EU4, G4‑4| During the year, it commercialized 43,893 GWh of energy. |GRI EU2| In 2014, commercial operations were initiated at HPP Batalha on the border Furnas ended the year with a headcount of the states of Goiás and Minas Gerais, of 3,517 own employees, 1,330 outsourced 1 The Specific Purpose Entities (SPEs) are contractual partnerships between Furnas and public or private equity firms for the implementation and management of projects. 7 FURNAS SUSTAINABILITY REPORT 2014 COMPANY PROFILE personnel and 488 trainees. |GRI G4‑9| |GRI G4‑9| GENERATION Some 27 projects totaling 14,629.5 MW of installed capacity, of which 10,887.65 MW belongs to Furnas. Hydroelectric – 19 plants, of which four are its own, six are under special admin- istration - impacted by Law 12.783/2013, two in partnership with the private sector and seven through the SPE regime, with total installed capacity of 13,902.11 MW; Thermoelectric – two plants, with total installed capacity of 530 MW; Wind – three farms in the SPE regime, with total installed capacity of 187.04 MW; Small Hydroelectric Power Plants (SHPs) – three stations with total installed capacity of 10.3 MW. HPP MARIMBONDO SUBSTATION (MG/SP) TRANSMISSION Transmission lines – 24,139.90 km of lines, of which 4,233.40 km are through ┋ participation in SPEs. With voltages of 138, 230, 345, 500, 750 and ± 600 kV, its lines run through 15 states and the Federal District. They include the Itaipu Transmission System (five 27 lines, each with 900 km between the Generation projects, states of Paraná and São Paulo). Furnas' own and in Substations – 68 facilities with total transforming capacity of partnership including 118,243.17 MVA (MVA 14,875.00 in 18 hydroelectric plants, substations in which it has stakes). thermoelectric plants and ➡ The breakdown of Furnas’ assets, investments and partners in Specific wind farms, total installed Purpose Entities (SPEs) is presented in the Appendix, as of page 90 capacity of 14,629.5 MW ┅ BALEIA FORTIM FAMOSA I MIASSABA3 CEARÁ REIDOS VENTOS IeIII PUNAÚ ACARAÚ SERRADOMEL COMPANY PROFILE RIO GRANDE NATAL DO NORTE FAMOSA III FURNAS' PORTO SANTO PRESENCE VELHO ANTÔNIO SÃO MANOEL COLETORA Generation and PORTO VELHO TELES PIRES TOCANTINS transmission system |GRI G4‑8| ARARAQUARA INTERLIGAÇÃO NORTE/SUL RONDÔNIA XINGU PLANTS IN OPERATION MATO GROSSO GURUPI BARREIRAS PEIXEANGICAL ITAGUAÇU Furnas DA BAHIA Hydroelectric . MW PEIXE2 BAHIA Simplício.................... 306 Itumbiara ................. 2,080 Marimbondo ............... 1,440 Furnas ..................... 1,216 NOBRES SERRADA MESA RIO DAS ÉGUAS L.C.B. Carvalho (Estreito)..... 1,050 Batalha ...................... 52 MANSO M. De Moraes (Peixoto) ....... 476 NIQUELÂNDIA Corumbá.................... 375 ITAPACI B. GERAL Porto Colômbia.............. 319 B. SUL BARROALTO SAMAMBAIA Funil........................ 216 CUIABÁ B. LESTE SHPs Neblina, Sinceridade GOIÁS PIRINEUS COXIPÓ BRASÍLIA LUZIÂNIA e Dona Rita ....................10 RONDONÓPOLIS XAVANTES PLANTS UNDER TRINDADE Thermoelectric . MW BARRA DO PEIXE IRAPÉ CONSTRUCTION/EXPANSION PALMEIRAS Santa Cruz .................. 500 COLETORA BANDEIRANTES PORTO VELHO GOIÂNIA BATALHA MONTES CLAROS2 Campos (R. Silveira)........... 30 Hydroelectric . MW CARAJAS RIO VERDE ARAÇUAÍ2 Anta .......................... 28 COUTODE MAGALHÃES PIRAPORA 2 Total ..................... 8,070 NORTE EDEIA CORUMBÁ PARACATU1 Santo Antônio (*) ............ 1,281 JATAÍ CORUMBÁ Partnership/SPE São Manoel (*) ............... 700 RIO VERDE SERRADOFACÃO Hydroelectric . MW Teles Pires (*) ............... 1,820 QUIRINÓPOLIS MINAS GERAIS ITUMBIARA Serra da Mesa .............. 1,275 Total . 3,829 C. DOURADA EMBORCAÇÃO BARRADOS CURVELO2 VALADARES Manso ...................... 210 COQUEIROS RETIROBAIXO BAGUARI Peixe Angical ................ 499 Wind . MW CHAPADÃO L.C.B. CARVALHO ESPÍRITO SANTO DO SUL SÃO SIMÃO BOM MESQUITA Baguari ..................... 140 CoFamosa I Complex (*) ........88 (ESTREITO) LINHARES VOLTA ESTREITONOVA DESPACHO BARREIRO Retiro Baixo .................. 82 Fortim Complex (*) ............126 GRANDE M. MORAES BELO MASCARENHAS Serra do Facão .............. 213 Baleia Complex (*) ............ 116 MATO GROSSO ÁGUAVERMELHA VITÓRIA (PEIXOTO) HORIZONTE Foz do Chapecó.............. 855 Punaú Complex (*) ..........