Acting with ambitious climate goals is an urgent need for the environment, but it also makes increasing economic sense in the face of the consequences of extreme weather events and the opportunities for growth and job creation that a carbon-neutral economy offers. Aware of the leadership role that companies must play for green growth, Neoenergia actively participates to contribute to effective discussions and actions.
Iberdrola,the company's parent company, will plant more than 20 million trees in the countries in which it operates by 2030, most of which are in Brazil, as a promoter of climate change. The initiative represents an absorption of emissions from a vehicle that performs 116 turns around the planet and the hectares of plantation are equivalent to 25,000 soccer fields in the area used. The program aims to create a corporate motivation for the promotion and conservation of biodiversity.
Neoenergia is also a member of coalitions such as the UN Global Compact, of which it has been a signatory since 2007 and has renewed its commitment to the Ten Principles, based on actions that respect human rights and environmental preservation. On the national front, it is part of the Climate Action Platform of the local network of the Compact and of the Chamber of Energy and Climate Change of the Brazilian Business Council for Sustainable Development (CEBDS).
Since September, the company's deputy CEO, Solange Ribeiro, is vice-president of the Global Compact Council, the world's largest voluntary initiative for corporate sustainability, with the adhesion of over 12 thousand companies in 160 countries, among them, some of the main global brands. The coalition is leading the way on climate ambition among companies, advocating action to achieve a resilient economy and transition to carbon neutrality by 2050.
Strongly engaged in the Compact's global programs and campaigns, Iberdrola Group highlights Caring for Climate, an initiative for business leadership on climate change that fosters stronger commitment from companies in the fight against climate change. Under this initiative, practical solutions are implemented, which are helpful in drawing public policies for mitigation and climate adaptation. The group is also a signatory of the Business Ambition for 1.5°C campaign, which calls for the adoption of strategies to reduce emissions based on seeking to limit global warming to 1.5°C above pre-industrial levels.
Aligned with the same purpose, Neoenergia has the goal of promoting decarbonization initiatives to neutralize emissions by 2050. In its business, it has prioritized investments in renewable energy,with a focus on wind and solar. Today, 86.9% of the company's installed capacity is clean energy and will reach 90% in 2022, with the delivery of its two largest wind farms in the country, Chafariz (PB) and Oitis (PI and BA). In addition, it focuses on electric mobility, digitization of customer service, biodiversity preservation initiatives and energy efficiency and innovation projects,such as energy storage in batteries, electric truck and smart meters with scanning of networks.
As part of the United Nations Energy Compact initiative, it is committed to reducing the intensity of emissions in its portfolio and to contributing to universal access to clean and affordable energy in Brazil.
With support from the Center for Sustainability Studies of the Getúlio Vargas Foundation (FGVces), Neoenergia has developed an internal carbon pricing project to support the decarbonization route of its operational processes. It also participates in the Global Compact's international initiative called Net Zero Ambition, engaging to develop ambitious climate targets, aligned with science, which integrates Sustainable Development Goal 13 (Climate Action) and the goals of the Paris Agreement into its business strategies.
"We are committed to sustainable development, which is materialized in our commitment to good ESG (environmental, social, and governance) practices, which are integrated into our day-to-day operations. The energy transition and the decarbonization of the economy are embodied in the company's business strategy", says Renata Koga, Sustainability and Climate Change manager at Neoenergia.
Neoenergia believes in green recovery after the economic crisis caused by the Covid-19 pandemic. The adoption of national strategies that address the goals of the Paris Agreement can generate economic benefits worldwide. A study by the Global Commission on the Economy and Climate Change has pointed out that ambitious climate action could generate at least US$ 6 trillion in net income worldwide, and 65 million jobs, by 2030. The Commission on Sustainable Development and Business estimates that the fulfillment of SDGs could generate US$ 12 trillion in savings and new revenues and 380 million more new jobs. A study led by WRI Brasil shows that betting on the green economy can generate an additional cumulative increase in the Gross Domestic Product (GDP) of R$ 2.8 trillion by 2030 and two million more jobs for Brazil, vis-à-vis maintaining an economy based on the use of fossil fuels.
In addition to the commitment to the Ten Principles of U.N. Global Compact, the company contributes to the 17 Sustainable Development Goals (SDGs), prioritizing those related to the supply of affordable and clean energy (SDG 7) and climate action (SDG13). There is also commitment to other SDGs related to strategic topics and that directly contribute to sustainable business management: clean water and sanitation (SDG 6), industry, innovation, and infrastructure (SDG 9), life on land (SDG 15), and partnerships for the goals (SDG 17).