Annual Sustainability Report

Document presents Neoenergia's consolidated information in the ESG+F dimensions (environmental, social, governance, and financial, in English translation).

As a way of demonstrating Neoenergia's commitment to transparency and a sustainable growth model, the company has been reporting annually, since 2004, its performance in environmental, social, economic and governance aspects through the Annual Sustainability Report.

The document is prepared based on the Global Reporting Initiative (GRI) standards, also considering the Sustainability Accounting Standards Board (SASB) standards for the electricity sector and the recommendations contained in the S&P Global Corporate Sustainability Assessment (CSA) for the Dow Jones Sustainability Index (DJSI).

Starting in 2021, the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD, or Task Force on Climate-Related Financial Disclosure) were added to the document, meeting the commitments to the Global Compact and the United Nations (UN) Sustainable Development Goals (SDGs).

Financial data are prepared in accordance with International Financial Reporting Standards (IFRS). The consolidation of Non-Financial Information takes place in its own indicator management systems based on international methodologies (GRI, IIRC and SASB), corporate procedures, environmental and quality standards and certifications. The report undergoes limited assurance by an independent auditor and is verified by an internal audit, certified by Internal Controls and verified by the Executive Board, Sustainability Committee, Audit Committee and Board of Directors.

The document covers the companies controlled and managed by Neoenergia. Financial data are prepared in accordance with International Financial Reporting Standards (IFRS). Socio-environmental and governance information is consolidated in its own indicator management system based on corporate procedures, environmental and quality standards and certifications. Non-Financial Information is internally verified and certified in several instances, subject to internal auditing processes and internal controls, and approved by the Sustainability Committee, Audit Committee and Board of Directors. The Annual Report is provided by a third party by KPMG Assessores.

The topics covered in the Annual Report follow the result of a process carried out during the year to identify the priorities in managing Neoenergia's sustainability and the content of the document, based on 24 aspects established by the Neoenergia controller, Iberdrola. The work is based on the GRI guidelines and the AA1000 (Accountability 1000) standard.