Efficient Use of Resources

Transcription

1
AES EL ETROP AULO
Sustainability report 2012
2
Summary
About the report
Message from the CEO
Profile
Corporate Governance
Consistency
Transparency
Governance Structure
Corporate Structure
Capital Market
Strategic and Sustainable Planning
Sustainability Platform
Public Commitments
Corporate Management
Strategic Plan Cycle
Safety
Workforce Safety
Safety for the Population
Innovation and Excellence for the Customer’s Satisfaction
Customer Satisfaction
Operational Excellence
Efficient Use of Financial Resources
Efficient Use of Power Resources
Efficient Use of Natural Resources
Development and valuation of employees, suppliers and communities
Development and Valuation of employees
Development and Valuation of suppliers
Development and Valuation of communities
Social Report (Ibase)
Assurance Report of socioenvironmental information
Assurance report on the process of engagement of public of relations
GRI Exam Statement
Index of GRI Indicators
Credits
3
4
7
11
11
14
15
19
19
21
23
25
26
27
30
31
33
36
37
41
45
45
53
57
63
63
70
74
82
83
86
88
89
93
3
About the report
GRI: 2.1; 3.1; 3.3; 3.4; 3.5; 3.6; 3.8; 3.9; 3.10
AES Eletropaulo provides, in this sustainability report, the initiatives to insure the
development of its business, by exposing the key matters related to the company’s social,
environmental and economic responsibility.
Published by the seven consecutive years under the guidelines of the Global Reporting
Initiative (GRI), this document is in compliance with level B of adherence to the guidelines,
and was subject to external verification. Eventually and always indicated in the explanatory
notes, specific assumptions for calculating the GRI indicators with additional methodologies
were adopted. Complementarily, reformulations in information previously provided are
indicated in the explanatory notes.
Published on an annual basis, the report covers the period between January 1, 2012 and
December 31, 2012 and provides information on the AES Eletropaulo’s activities in its
operational units in the State of São Paulo.
The content was defined together with all the company’s areas and based on the
discussions during the 4th Cycle of Relationship Discussions, carried out between
September and November 2012, which represented a development process, attended by
employees, suppliers and clients (corporate and residential).
This report is in compliance with the commitment established with target audiences on the
disclosure of the findings related to the Sustainability Platform, in the context of the
"Communication, Knowledge and Information".
C
C+
B
B+
A
A+
Answer to items:
Answer to all criteria
mentioned to Level C
plus:
1.2;
3.9, 3.13;
4.5 to 4.13;
1.1;
2.1 to 2.10;
3.1 to 3.8, 3.10 to
3.12
G3 Performance
Indicators and
Sector
Supplement
Not required
Answer to a
minimum of 10
Performance
Indicators, including
at least one of each
the following
performance areas:
social, economic and
environmental.
4.16 to 4.17
Information about
Management Way to
each Indicator Category
Answer to a minimum
of 20 Performance
Indicators, including at
least one of each of the
following performance
area: economic,
environmental, human
rights, labor practices,
society, and
responsibility over the
product.
Management Way
disclosed for each
Category of Indicator
Answer to each
essential indicator of
G3 and of Sector
Supplement*
considering the
Principle of
materiality of one of
the following ways:
(a) answering to the
indicator or (b)
explaining the reason
of such omission.
With external verification
G3 Management
way
The same required to
Level B
Content of the Report
4.1 to 4.4, 4ª14 to
4.15
G3 Profile
To forward doubts and suggestions about this report, right to the board of Communication and
Sustainability, to the care of Luiz Pires, on the e-mail [email protected].
4
Message from the CEO
GRI: 1.1; 1.2; EU10; EU19; EU28; EU29
For the first time, we announced our financial results together with the social and
environmental enterprises of AES Brazil. This consolidates an important step in the
Strategic and Sustainable Planning, we released in early 2012, and provide more clarity to
the commitments we have made to contribute to the sustainable development of the
company.
The year 2012 was marked by significant events such as confirmation of the third tariff
review of AES Eletropaulo, the introduction of the program to reduce the electricity tariff and
the definition of the proposal for renewal of the licenses of distribution, transmission and
generation of electricity, maturing between 2015 and 2017. It is expected that the reduction
of electricity tariffs, implemented since January 2013, will contribute to greater
competitiveness of Brazilian industry and promote the economic growth of the Country.
The hydrology arising from a shyest scheme of rains in the 4th quarter of 2012 led to the
activation of higher level of thermoelectric power generation to supply electricity demand in
the country. This brings reflection on how the industry should move more consistently in
expanding the operational flexibility of the Brazilian electrical system, ensuring greater
security of supply against volatile hydrological situations.
In this scenario, we maintained investments and focus on customer satisfaction in the
pursuit of growth opportunities of our generation capacity and improving efficiency
standards and discipline in execution. We invested in 2012, R$ 1.2 billion in our operations
in electricity distribution - AES Eletropaulo and AES Sul, improving the quality of services,
and modernizing the power grid.
The frequency (FEC) and the average duration of interruptions (DEC) were reduced by 15%
and 19%, respectively, in the concession area of AES Eletropaulo, and in 8% and 9% in
AES Sul.
We surpassed 500 thousand families with regularized wiring in municipalities served by AES
Eletropaulo, which added to those of AES Sul are equivalent to 2 million people in lowincome communities benefited by our services and the education program for the efficient
and safe use of electricity, between 2004 and 2012.
On the subject of safety our number 1 value, we did not record fatal accidents involving our
own employees for the second consecutive year and reached 16.8% reduction in accidents
involving company employees and contractors. We regret two fatal accidents involving
employees of contractors of AES Eletropaulo and AES Sul and expanded our actions and
investments in training monitoring and consolidation of a culture consistent with our values
of safety to all those who provide services to us. Fatal accidents involving the population
were reduced by 16% in the areas where we operate.
In generation, we invested approximately R$ 139 million in the modernization program of
hydro plants. In pursuing the goal of expanding the generation capacity of AES Tietê, up to
3000 MW by 2016, followed with the environmental licensing process for installing the Term
Sao Paulo project with 550 MW capacity. We also acquired an option to purchase the
Project Term Araraquara, with a capacity of 579 MW, in São Paulo. We expanded, yet, our
activities in energy trading in the free market, achieving a portfolio equivalent to 288 MW as
part of our strategy for the rehiring of energy to be provided by AES Tietê from 2016.
After more than four years, we resumed thermoelectric operations on natural gas, in Rio
Grande do Sul, AES Uruguaiana, initially in an operation of an emergency nature, providing
5
up to 244 MW to the system from February 2013, but certain we could contribute to the
flexibility in the operation of the electrical system of the country enabling, together with the
Brazilian government, the conditions for sustainable and long-term operation.
We seeked, throughout the past year, to be more efficient and have discipline in execution,
especially in AES Eletropaulo, according to the third tariff review cycle. We invested in
technology, including a new modern Operation Center for AES Eletropaulo, and made
significant changes, integrating all business areas of the Group and the Commercial and
Operations areas of AES Eletropaulo in a single head office in the municipality of Barueri in
the State of São Paulo.
AES Brazil ended 2012 with EBITDA of R $ 2.6 billion and net income of R $ 1.1 billion,
46% and 62% lower than 2011. Part of this result is due to the sale of AES Atimus, recorded
in the balance sheet for the year 2011, and the reflections of the third tariff review of AES
Eletropaulo.
Our investments for 2013 will total R$ 1.1 billion, of which R $ 918 million for energy
distribution (R$ 647 million in AES Eletropaulo and R $ 271 million in AES Sul) and R $ 213
million in the continuing modernization program of hydroelectric plants at AES Tietê.
We obtained several recognitions throughout 2012, as recognition we dedicate the trust and
support of our employees, customers, investors, suppliers, shareholders, communities,
regulatory bodies and public power:

AES Eletropaulo and AES Tietê won the National Quality Award, the National
Quality Foundation;

AES Brasil was recognized for the second time as one of 20 model companies in
Sustainability, according to Sustainability Guide Exam;

AES Eletropaulo and AES Tietê integrate, once more, the Corporate Sustainability
Index (ISE) of BM &FBovespa;

AES Sul was named one of the 150 best companies to work for, according to the
Guia Você S.A 2012;

AES Eletropaulo was voted the most admired company in Brazil in 2012, the fourth
consecutive year in the category "Electricity Supply", in award sponsored by the
magazine Carta Capital;

AES Eletropaulo won the Children's Award, the ABRINQ Foundation / Save the
Children, as a reference company in the country in serving children from 0 to 6 years
through the work of Luz e Lápis Children’s Education Center.
Britaldo Soares
President of the Group AES Brasil
6
Profile
AES Eletropaulo
A company providing sustainable solutions in electricity for over 6.4 million customers
GRI 1.2; 2.1; 2.2; 2.4; 2.5; 2.7; 2.8; 3.6
Since 1998, AES Eletropaulo operates in the metropolitan region of São Paulo, distributing
electricity to 24 municipalities in São Paulo (see the list of municipalities in the table below)
in a total area of 4,526 km2. The Company is the largest distributor of electric energy in
Latin America supplying electric energy to 16.6 million inhabitants and 6,5 million consumer
units. Therefore, counting on a staff comprised of 5,872 own employees and 11,563
subcontracted employees, serving its clients with quality and efficiency.
The area of concession of AES Eletropaulo is focused on the main industrial and financial
center in Brazil, with a Gross Domestic Product (PIB) that represents more than 50% of the
total GDP in São Paulo, according to the information provided by Fundação Sistema
Estadual de Análise de Dados (Seade) and Instituto Brasileiro de Geografia e Estatística
(IBGE). The Human Development Index (IDH) of the region totals 0.828 – based on a scale
from 0 to 1. Based on these characteristics, AES Eletropaulo is responsible for the supply of
34.3% of the total electricity consumed in the State of São Paulo and 10.5% of the total
electricity consumed in Brazil.
In order to meet these challenges and focus on the supply of efficient and sustainable
electric energy solutions to meet its clients' needs, in 2012, the company invested R$ 831.1
million in the projects for maintenance, expansion and modernization of the network, in
addition to the services provided to the customer. This amount is 12.5% greater than the
investments performed in 2011 (R$ 738.7 million).
In 2012, AES Brasil, whose Group AES Eletropaulo also takes part, completed a significant
change in its work structure to provide further integration, synergy, improvement, efficiency
and competitiveness. In an innovative work environment that promotes the welfare of the
employees, AES Brasil transferred its head office and integrated the Group’s corporate
areas, including the Commercial and Operational areas of AES Eletropaulo, in a single
building in the city of Barueri (SP). For further information on the effects and benefits of this
change, see page 63.
Cities of Concession Area of AES Eletropaulo
Barueri
Itapevi
Santana do Parnaíba
Cajamar
Jandira
Santo André
Carapicuíba
Juquitiba
São Bernardo do Campo
Cotia
Mauá
São Caetano do Sul
Diadema
Osasco
São Lourenço da Serra
Embu
Pirapora do Bom Jesus
São Paulo
Embu-Guaçu
Ribeirão Pires
Taboão da Serra
Itapecerica da Serra
Rio Grande da Serra
Vargem Grande Paulista
7
GRI 2.3; 2.6; EU1; EU4
AES Eletropaulo in numbers
5.872 own employees and 10,251 subcontracted employees
6,5 million consumer units
24 cities served
151 substations
13.703,8 MVA of installed capacity
41.177,6 km of aerial distribution grid
3.134,9 km of underground distribution grid
1.766,7 km of aerial subtransmission line
190 km of underground subtransmission line
R$ 9.95 billion of net operating income
R$ 831,1 million invested in the modernization and expansion of the grid and customer
service
R$ 107,9 million in net income
R$ 113.24 in investments in the communities of our concession area
45.557 GWh* of energy distributed to the captive market and free customers
R$ 1.157.629.316,47 of capital stock
66 thousand shareholders**
56.3% Free float***
* wh (watt-hour) is the unit of measurement that indicates the amount of energy necessary to power a 1 watt load for the period
of 60 minutes. 1 gwh (gigawatt-hour) is equal to 1 billion watts, or 3,600 gj. / ** AES Eletropaulo is a publicly-held company and
trades its shares in BM&FBovespa. / *** It is the percentage of free shares to be traded in the market and not held by strategic
shareholders (controlling shareholders and executive officers, as well as shareholders holding over 5% of the company’s total
capital). The free float does not comprise the restricted shares (which cannot be traded) and those in treasury. In practical
terms, the highest the free float is, the highest is the liquidity in the market.
GRI EU3
Units Consumers per Class
2010
2011
2012
Residential
5.749.408
5.956.173
6.094.754
345.682
344.606
340.098
Industrial
29.020
28.465
27.972
Others
17.954
18.545
19.286
6.142.064
6.347.789
6.482.110
Commercial
Total
GRI 2.3; 2.4; 2.5
AES Corp. e AES Brasil
AES Corp. is a global company operating in the generation and distribution of electricity.
Operating in 27 countries, its workforce, comprised of 27 thousand people, is committed
with the operational excellence and compliance with the energy consumption needs in the
world.
In Brazil since 1997, AES acts in the generation, distribution and sale of electric power,
with operations in the states of São Paulo and Rio Grande do Sul. Currently, it comprises a
workforce of 7.6 thousand employees in Brazil.
AES Brasil Group is comprised of two distributors, AES Eletropaulo and AES Sul, and two
generators, AES Uruguaiana and AES Tietê. Together, these companies account for
12.5% of electric energy distributed and 2.2% of installed capacity in the country.
For further information on the AES Eletropaulo’s background, access
www.aeseletropaulo.com.br.
8
Regulatory Landscape
The year of 2012 was one of significant changes in the Brazilian electricity sector. In
addition to the effects from the tariff reviews, the periodical process performed by the
National Electric Energy Agency (Aneel), the Federal Government announced a number of
reductions of electric power fees in order to stimulate the Brazilian economy through the
Provisional Measure 579.
The main purpose of the review is to ensure the fair value of the tariff charged against the
consumers, based on the gains in terms of efficiency and productivity of the distributor in a
specific period set forth in the agreement – each four years for AES Eletropaulo. The tariff
review index approved in July of 2012 by ANEEL was -9.33% (average effect absorbed by
the consumer) and -5.60% (economic effect).
The Company has already expected the tariff reduction due to the sharing of efficiency
gains and productivity, however, at a level lower than that provided by Aneel. The effects
from this change affected the Company as a whole and, despite of the recognition due to
the excellence in the management (see page 26), it resulted in the restructuring of positions
and salaries to be aligned with the new financial scenario (see page 65).
The tariff review in 2012 is not directly related to the annual tariff adjustment, in the period
and intercycles, in which the formula included in the concession agreement is applied.
Also in the regulatory landscape, on September, 2012, a measurement package was
announced in order to encourage the economy growth. This package, also through PM579,
seeks to reduce the energy costs to all consumers.
This initiative seeks for an average reduction of 20.2%1 in the electricity tariffs, of which, in
average, 16.2% refers to the residential customers and 19.7% to 28.0% refers to the
industrial consumers, based on two main aspects: reduction of the sectorial charges (up to
7%) and redefinition of the conditions for renewal of the concession agreements for
generation, transmission and distribution, falling due between 2015 and 2017 (up to 13.2%).
The effects from PM 579 and related legislation were already considered in the calculation
of the tariff of AES Eletropaulo, performed by Aneel, on February, 2013. The consumers of
AES Eletropaulo will have a reduction of 18.25%.
Awards and recognitions
GRI 2.10
The year of 2012 was marked by significant activities and consolidation of important
strategic actions of AES Eletropaulo, all directed to the construction of more efficient
processes for the improvement of the services provided and customer satisfaction. This
performance was recognized by the target audiences and translated into important awards.
Some of the significant awards are as follows:
● 2012 Abradee Award: promoted by the Brazilian Association of Electric Power Distributors
(Abradee), it recognizes the best distribution companies operating in Brazil. In the year, the
company advanced from the 8th to the 5th position, amongst the 29 companies with over 500
thousand clients. With respect to the specific categories, we refer to the first position in the
ranking of the Economic and Financial Management, as well as the second position in the
ranking of the Social Responsibility;
9
● Corporate Sustainability Index (ISE): for another year (portfolio of 2013), AES
Eletropaulo will comprise this important portfolio of shares, of which it is a member since
2005 in BM&FBovespa;
● National Quality Award: promoted by the National Quality Foundation, recognized AES
Eletropaulo, again, in 2012 for its management practices and continuous improvement;
● 2012 Most Admired Companies in Brazil: for the fourth consecutive year, AES
Eletropaulo was considered the most recognized company in the “Energy Supply” category in
the award granted by Carta Capital magazine;
● 2012 Annual Balance of the Best and Largest Companies: organized by the Diário do
Comércio newspaper, AES Eletropaulo was considered the best company in terms of
financial results and efficiency;
● Best Brazilian Companies: awarded in the “Energy Efficiency” category in the first edition
of the award granted by the Brasil Econômico;
● Company that Mostly Respects the Consumer: awarded in the “Energy Suppliers”
category by the Consumidor Moderno magazine;
● Energy Efficiency Highlight: award granted in the 9th Brazilian Congress on Energy
Efficiency;
● Children Award of Fundação Abrinq/Save the Children: AES Eletropaulo was
recognized as a reference in Brazil in terms of services provided to children between 0 and 6
years old through the Luz e Lápis Children’s Education Center;
● Certification ISO 14001: The certification was made to all the processes of the company,
from the distribution system to its facilities;
● Abrasca de Criação de Valor Award: AES Eletropaulo received the sectorial
achievement award, for the acknowledgement of the efforts of the company, which created
13.7% of the value to its shareholders in average of the last three years.
● APEX global Awards 2011: it acknowledges the company and the country which
performed the best implementation and development of Apex program, of AES Corp. and its
practices.
● Certification OHSAS 18.001: in 2012, the health and safety management system of
AES Eletropaulo was certified comprising all of the company’s facilities and activities;
 Companies that Communicate the Best with Journalists: prize , awarded to
AES Brasil, which recognizes the quality of the relationships that companies have with
journalists and with the market, as well as emphasizing the level of treatment offered to the
press based on the accessibility, availability and ease of verification of general information or
related to business.
Sustainability Reference
In 2012, AES Brasil Group was recognized as one of the 20 sustainable role model
companies by the Exame magazine. This award, provided by one of the most recognized
business publications in Brazil, is the recognition of the commitment assumed by the
Group´s companies with the sustainable development, represented by strategy, goals in
the medium and long term and practical actions.
10
Strategic and Responsible Operation
The adoption of good practices is essential for the efficient business management and, therefore, an
important basis for value creation
In order to develop a strategic and responsible corporate governance structure, the
companies comprising the AES Brasil Group operate in order to ensure the equity and
transparency in the relations with shareholders and the protection of the rights of the other
target audiences. Accordingly, these companies are based on the Consistency and
Transparency Principles of AES Corp. With respect to the consistency, the companies
adopt and comply with the commitment to develop, with all related parties, the transactions
and activities in accordance with their values and guidelines. In terms of transparency, the
companies work on a continuous basis to define an open and transparent communication
with all target audiences.
Vision, Mission and Values
GRI 4.8
In order to consolidate the high performance culture disseminated in all companies of AES
Brasil Group, AES Eletropaulo's initiatives are aligned with the organizational guidelines,
objective and long-term goals set forth in the Group's Strategic Sustainable Plan. All
companies comprising AES Brasil are guided by the same mission and Values.
Vision
To be the best power distribution concessionaire in Brazil by 2016.
Mission
Promote welfare and development with safe, sustainable and reliable offer of electric energy
solutions.
Values

Safety in first place;

Act with integrity;

Honor commitments;

Seek excellence;

Job satisfaction.
Consistency
In accordance with its values, specifically with respect to acting with integrity, since 2011
AES Eletropaulo comprises the Pro-Ethics Company Registry. As an initiative of the
General Controllership of the Federal Government (CGU) and the Ethos Institute, this
registry evaluates, judges – based on strict criteria – and discloses the organizations that
voluntarily intends to develop an environment of commercial integrity and confidence,
including those operating in the public sector. Integrate the registry 14 companies, of which
three comprise the AES Brasil Group (AES Eletropaulo, AES Tietê and AES Sul). For
11
further information on CGU initiative and Ethos Institute, visit:
www.cgu.gov.br/empresaproetica
Requirements evaluated by the Pro-Ethics Company Registry
● Adoption of an internal code of ethics;
● Adoption of social responsibility rules;
● Creation of a system to receive anonymous comments;
● Implementation of rules to receive gifts;
● Creation of internal commission to judge eventual deviations committed internally.
The recognition confirms that the ethics was always the basis to conduct business in
AES Eletropaulo. It is a formal and express commitment disclosed by the Value Guide, a
set of rules, assumptions and recommendations to ensure the transparency and
consistency in the measures adopted by AES Brasil Group (see the table below for further
information). In addition, the Ethics and Compliance Program promotes the good practices
to all target audiences and ensures the highest ethics level in all relationships with our
interested parties, reducing the exposures in terms related to reputation.
Value Guide
The activities of the companies comprising AES Brasil are supported by our Code of Ethics
and Business Behavior, denominated “The AES Values – from Words to Actions”. The
document is based on the AES Corp.’s guidelines, which support the corporate governance
practices. The Value Guide is available to all interested parties at
www.aesbrasil.com.br/Documents/GuiadeValores.pdf.
Contractual Compliance Review
GRI SO2
The contractual compliance review has the purpose to verify the legal and ethics conduct of
the commercial partners, prior to an agreement contracting or renewal, and safeguard AES
Eletropaulo from situations that may characterize any ethics or legal violation, to ensure the
integrity of the business.
On a periodical basis, the Group offers training to improve the understanding of the Values
of the company and discussion of the daily ethical matters, such as the FCPA (Law against
Corruption). As on FCPA (Anti Corruption Law).
Based on the Compliance program, there are rules for evaluation and previous approval of
the engagements of all areas of the companies comprising the AES Group in Brazil with
respect to the amounts greater than US$100 thousand or that could be classified as high
risk, regardless of any value.
GRI SO3
Employees trained in procedures
against corruption
Management
Others
2009
2010
2011
2012
303
13
337
1
3,813
276
4,414
67
Note: In 2009, the training against corruption was performed by 96% of the employees; in 2010, employees that
have not performed the training in the previous year attended to the training, together with new employees; in
2011, the training was performed by 86% of the employees; in 2012, employees that have not performed the
training in the previous year attended to the training.
12
GRI 4.12
Integrity Commitments
AES Brasil Group is considered to be a reference by adopting strict initiatives that
supersedes the common market practices.
The companies comprising the Group are, for example, signatories of the Corporate
Treaty for Integrity and Anti-corruption, a joint initiative from Ethos Institute, Uniethos,
Patri, the United Nations Development Programme (Pnud), United Nations Office on
Drugs and Crime (Unodoc) and the Brazilian Committee of the Global Pact.
These companies also comprise the ethic committee of the National Quality Foundation
(FNQ), whose purpose is to contribute with other organizations in the development of the
best joint practices and in the production of materials to support other companies that
intend to adopt transparent and reliable initiatives.
Dissemination of Values
GRI SO2; SO3; SO4
Over 2012, 5,570 employees of all units of AES Eletropaulo attended to the trainings
directed to the disclosure and improvement of the Company's values and internal policies,
as indicated in the table below:
Trained persons by type of training (2012)
Subject
Trained employees
Integration for new employees
7
Program of Leadership Development (PDL)
30
Workshop Contract Compliance
7
Prohibition of Second Job and External Activity
9
Prohibition of Extra Compensation in Christmas
562
4.962
Ethics Champions
FCPA (Foreign Corrupt Practices Act)
69
Global Ethics Day
1.739
AES Brasil Value Guide Certification
5.570
Total of Employees with Compliance Training
5.570
Suppliers trained by type of training(2012)
Theme
Suppliers trained
FCPA (Foreign Corrupt Practices Act)
9
Prohibition of Extra Compensation in Christmas
168
Total of Suppliers with Compliance Training
177
Despite the efforts undertaken by AES Eletropaulo to disclose its value and adopt the
measures to prevent the unlawful actions, in 2012 we recorded two cases of corruption,
which resulted in the discharge of three employees. In one of the cases the supplier was
also blocked.
13
GRI HR6; HR7
Decent Work
AES Brasil works in order to eradicate child labor and prevent degrading and forced labor
in its supply chain by means of various tools.
Also in the register stage, the companies of the Group make available information related
to Ethics Code. In contracts, there are specific clauses on this matter. Also, audits in loco
are performed in suppliers. The matter is also included in the checklist of verification of
Safety Inspections.
In order to enter into this undertaking, AES Brasil has executed in 2010 the National Treaty
for the Eradication of Slave Labor in Brazil.
Transparency
GRI HR3; HR4; SO7; PR9
Aligned with the transparency guideline, AES Eletropaulo works, on a daily basis, to
establish the communication relationship with all target audiences. The company is
supported by the AES Helpline, the communication line, available 24 hours a day and 365
days of the year to receive and address the claims reporting ethics concerns or doubts
related to the Company’s values, as reported by the several target audiences of the
companies comprising the AES Brasil Group.
Through telephone (0800 891 4167) or internet (www.aeshelpline.com), AES helpline
receives from own employees or subcontracted employees, suppliers, shareholders and
others doubts, claims or denounces related to ethics, lack of ethics and business practices
deemed illegal, corrupt or not in accordance with AES values.
The reports do not need to be identified and will always be treated as confidential. The
confidentiality is ensured as all cases are received by an outsourced company globally
contracted by AES Corp., located in the United States of America, ensuring, therefore, the
accuracy, transparency and lawfulness of the verification process.
All reports are analyzed and verified by the Compliance Management. The most sensitive
cases are reported to the Ethics Committee for decision and resolution by the organization
leadership. AES Corp., on the other hand, manages the results of these inspections, whose
final level is the inspection, and the process may be resumed, if necessary.
In 2012, there was an accusation related to the religious discrimination. This happened in
March and was investigated by the Compliance department. At the end of the investigation,
it was concluded that it did not have legal basis.
AES Brasil
AES Eletropaulo
AES Helpline
2010
2011
2012
2010
2011
2012
Claims
314
278
250
249
222
197
Requests for guidance
105
102
53
81
77
45
Total
419
380
303
330
299
242
In 2012, AES Brasil Group received a total of 303 calls, of which 53 relate to clarifications
and 250 relate to cases that could affect the Group's values. At AES Eletropaulo, out of the
242 received calls, 197 were claims and 45 about guide requests.
14
GRI: 4.1; 4.3; 4.4; 4.9; 4.5; 4.6; 4.7; 4.10; 4.11
The corporate governance of AES Eletropaulo is supported by its corporate bodies, as
described below, which are responsible for the analysis and decision-making procedures in
accordance with the matters set forth in the Bylaws.
General Meeting
The General Meeting is the Company’s resolute body and, although it has the power to
resolve on all matters, it is generally requested solely with respect to those cases that are
private. There are two types of meetings: the ordinary and extraordinary. The Ordinary
General Meeting, as a rule, is requested by the Board of Directors, and shall occur in the
first four months of each year to resolve on the matters set forth in article 132 of the
Brazilian Corporate Law. The Extraordinary General Shareholders’ Meeting may be
requested by the Officers, Board of Directors (when installed) or by the shareholders of the
company in the cases provided in article 123 of the Corporation Law and whenever
necessary, to resolve on the matters that not require specific power.
Board of Directors
The Board of Directors is the body responsible for the determination of the general direction
of the Company’s business, as well as for the approval of relevant matters and under its
exclusive responsibility, as set forth in the By-Laws. It is comprised of 11 effective members
and nine alternates, of which two effective members are independent directors (as set forth
in the Level 2 Regulation of BM&FBovespa), one effective member and the respective
alternate representing the employees, and one effective member representing the minority
ordinary shareholders and the other shareholders indicated by the controlling shareholders.
The mandate of the currently management directors ends at the General Meeting requested
to approve the financial statements for the year of 2012, having met 14 times throughout
2012, to conduct and monitor, on an effective basis, the company’s economic, operational,
social and environmental performance.
Supervisory Board
The Supervisory Board is the body those oversights the executive officers’ acts, as well as
verifies its compliance with legal and statutory obligations. Its installation is optional and the
Bylaws on its functioning, in a permanent way,, or in the fiscal years in which it is installed at
the request of the shareholders. When operational, its opinion is mandatory with respect to
certain matters set forth in current law or in the Bylaws, such as annual management report,
including its opinion on the supplementary information that it may deem required or useful
by the General Meeting; proposals of the management bodies, to be submitted to the
General Meeting, related to the capital stock changes, issuance of debentures or
subscription bonus, investment plans or capital budgets, distribution of dividends,
transformation, incorporation, merger or spin off; among others. It is comprised of five
effective members and five alternates, with mandate through the first Ordinary General
Meeting held after the election of its members. Some of the meetings are held together with
the meetings of the Company’s Board of Directors.
Board of Executive Officers
The Board of Executive Officers is the executive body responsible for the company’s
management, in addition to the resolutions of the General Meetings and Board of Directors.
It is comprised of the CEO, the Company’s Vice-CEO and the Investor Relations Officer and
15
more five officers vice-presidents, with mandate of three years, reelection being permitted.
The mandate of the current members of the Executive Board terminates at the General
Meeting that approved the financial statements for the year ended 2012.
Sustainability Committee
The Sustainability Committee is not a statutory body of the Company being responsible for
ensuring the management and rendering of accounts related to the sustainability matters,
including the validation of the strategy and the oversight of the progress through the
monitoring of the action plans, development of indicators and measurement of goals. It is
comprised of the AES Brasil’s CEO and its vice-CEO and reports directly to the Board of
Directors of each one of the Group’s companies.
Management Policy Committee of Investments and Operational
The Management Policy Committee of Investments and Operational is a statutory body to
act together with the Board of Directors of and the Executive Officers of the company and its
function is to assess the Board of Directors, being its competence: (i) analyze the proposals
of the Annual Business Plan; (ii) analyze the proposals of investment plans on expansion,
replacement and improvement of facilities, programming, and operation and maintenance of
the company's budget; (iii) monitor the evolution of the performance indicators of the
company; (iv) assess the adequate provision of services of the company, in compliance with
the standards required by the regulator body; and (v) monitor the implementation of the
Annual Business Plan, well as the analysis of all issues involving strategic and relevant
aspects of technical-operational, legal, administrative, economic, financial, environmental
and social. The management committee has permanent operation and consists of six
members, appointed in the form of the Shareholders' Agreement of Companhia Brasiliana
de Energia.
Performance Forum (Management System)
It ensures the compliance with the strategic goals and planned operational performance. It
is supported by the company’s executive officers and leaderships.
Focused Groups and Areas
Compliance
It is subordinated to the Vice-chair of Legal Matters of the AES Brasil, this area is
responsible for the Ethics and Conduct Code and its dissemination, trainings
related to ethics and compliance, inspection of the matters reported by the AES
Helpline Channel and evaluation of the reputation and ethics behavior of the
suppliers, agents, service providers and current or potential business partners.
Information
Security
It ensures the confidentiality, integrity and availability of the business information
complying with the requirements of corporate governance and legislation.
Internal Audit It prepares, together with AES Corp., an annual audit plan that includes the
business, regulation and control risks.
Internal
Controls
It proposes, improves and monitors the implementation of the best corporate
governance practices.
16
GRI 4.2;
Members of the Board of Directors
Chairman
Vincent Winslow Mathis*
Effective directors
Armínio Francisco Borjas Herrera
Bernerd Raymond da Santos Ávila
Britaldo Pedrosa Soares
Flora Lúcia Marin de Oliveira
Francisco José Morandi Lopéz
Heloísa Regina Guimarães de Menezes
Kenneth Joseph Zagzebski
Manuel Jeremias Leite Caldas (Independent Director)
Sergio Canuto da Silva (representative of the employees)
Sergio Silva do Amaral (Independent Director)
Alternate directors
Airton Ribeiro de Matos
Charles Rene Lebarbenchon
Marcelo de Carvalho Lopes
Marcos Ponce de Leon Arruda
Patricia Rosa de Oliveira (representative of the employees)
Paulo Camillo Vargas Penna
Pedro de Freitas Almeida Bueno Vieira
Ricardo de Abreu Sampaio Cyrino
Rinaldo Pecchio Junior
Members of the Supervisory Board**
Chairman
Sebastião Bergamini Júnior
Effective directors
Joaquim Dias de Castro
Marcelo Gasparino da Silva
Marcus Pereira Aucélio
Maria Carmen Westerlund Montera
Alternate directors
André Eduardo Dantas
Eduardo Coutinho Guerra
Kurt Janos Toth
Luis Eduardo Frisoni Junior
Luiz Ferreira Xavier Borges
17
Members of the Board of Executive Officers
Britaldo Pedrosa Soares - Executive President
Gustavo Duarte Pimenta - Executive Vice President
Paulo Camillo Vargas Penna – Executive Vice President
Pedro de Freitas Almeida Bueno Vieira - Executive Vice President
Rinaldo Pecchio Junior - Company’s Vice-CEO and Investor Relations Officer
Sheilly Caden Contente - Executive Vice President
Sidney Simonaggio – Executive Vice President
* Elected on May 3, 2012.
**Elected on April 16, 2012.
Corporate Structure
18
Capital Market
The shares of AES Eletropaulo are listed in Level 2 Corporate Governance of
BM&FBovespa, which means that the company assumes a public and formal commitment
to comply with differentiated practices, which requires and reinforces transparency in all
acts.
In 2012, its roles comprised, for the second consecutive year, the ICO2 (Efficient Carbon
Index), developed by BM&FBovespa together with the National Social and Economic
Development Bank (BNDES) and that includes in its portfolio solely the companies that
adopt transparent practices with respect to the emission of greenhouse gases (GEE). In this
regard, AES Eletropaulo monitors and determines it's GEE emissions on a transparent
basis, reinforcing its commitment with the climate and environmental matters (for further
information, see page 60). The shares of AES Eletropaulo also comprise the Electricity
Index (IEE), whose purpose is to measure the electric sector performance.
In addition, it was maintained, for the eight consecutive year, in the Corporate Sustainability
Index (ISE), of BM&FBovespa. AES Eletropaulo is one of the 14 companies – amongst the
37 that comprise the 2013 portfolio – that authorized the public disclosure of its
questionnaires, allowing, therefore, the public to obtain further information on the company’s
operations and behavior.
The total shares of AES Eletropaulo is 167,343,887, of which 66,604,817 are common
shares (ELPL3) and 100,739,070 are preferred shares (ELPL4). The company also holds
ADRs (American Depositary Receipts) traded in the north american over-the-counter market
that, beginning January 2012, migrated to the Level 1 rules and were traded under code
EPUMY. The migration aimed at providing access to the ADRs by the investors, mainly
those domiciled abroad, as well as increase the liquidity of the shares.
In 2012, the common shares (ELPL3) closed the year at R$ 24.00, a decrease of 45.5%,
while the preferred shares (ELPL4) closed the year at R$ 16.80, a decrease of 54.0%. In
this same period, Ibovespa appreciated by 7.4% and IEE reduced at 11.2%.
For further information on the capital markets, access the investor relations section at AES
Eletropaulo website: www.aeseletropaulo.com.br/ri.
Aiming the integrated report, focused in the investor
In June 2012, AES Brasil was one of the four Brazilian companies that adhered to the
International Integrated Reporting Council (IIRC), an international association comprised of
regulators, investors, companies, sectorial associations, accounting professionals and
ONGs.
The purpose of this work group is to discuss and prepare the guidelines for the "integrated
report”, a summarized document that provides the economic, financial, social and
environmental information of the organization on a simple, direct and connected basis.
This project defines a more adequate channel for the communication with investors and
shareholders, as well as with the market analysts that believe that the long-term strategy,
and the relation between its social and environmental and the economic and financial
performance, represent relevant information for the investment decision.
19
Communications with shareholders and investors
In order to report to its shareholders and investors, AES Eletropaulo offers:
- E-mail: [email protected];
- Access to the RI site through mobile phone;
- Warning system of updates submitted directly to the e-mail of the shareholder, as
requested;
- Twitter account focused exclusively in RI: @eletropaulo_rj
- Quarterly conferences offered to all shareholders;
- Public meetings with presentation of the business overview and results.
Strategic and Sustainable Planning
GRI: 1.2
AES Brasil is committed with its sustainable development and operates as an agent to
understand, meet and advance the electricity needs of its clients, with secure and innovative
solutions for the economic, environmental and social development of the communities
where it operates.
This commitment is the main basis of the Company’s Strategic and Sustainable Planning,
launched in 2012 and that will be fully put in practice through 2016. AES Brasil’s planning
has four strategic guidelines that indicate the alternatives for the company to be able to
comply with its commitment. The strategic guidelines are the following:

Focus on customer

Expansion

Comments from the relation network

Efficiency and accuracy in the performance
The AES Brasil’s Strategic Planning was defined in order to ensure the alignment with the
Sustainability Platform, whose development commenced in 2010 and was launched with the
Strategic Planning at the beginning of 2012. The platform comprises a set of aligned
guidelines that affect all organization’s processes. The strategic guidelines and the main
and related matters of the Sustainability Platform have the same purposes and priorities,
ensuring that the actions are performed on a smooth and continuous basis, which ensures
effective and long-term results to the Company.
There are five main matters and three related matters with respect to the Sustainability
Platform of AES Brasil.
Main matters:
•
Security;
•
Innovation and excellence for the customer's satisfaction;
•
Sustainable power generation;
•
Efficient use of resources;
•
Development and evaluation of employees, suppliers and communities.
20
Related matters:
•
Education for sustainability
•
Integration of relation network;
•
Communication, information and knowledge.
Strategy Spread: The Knowledge Map
AES Brasil considers that the disclosure of the strategy of each business with its
employees is essential for the success of the Strategic and Sustainable Planning.
The purpose of the training is to disclose, with more details through the knowledge map,
the strategy for the 2012-2016 cycle of AES Brasil, stimulating the dialogue and the
understanding of all employees, as well as how, individually, each employee is able to
contribute with the compliance of the strategic goals.
Accordingly, AES Brasil developed a training that takes approximately four hours and is
performed on a playful and dynamic basis: the Map represents the business model, the
Strategic Planning of the organization, reinforcing the sustainability as an essential aspect
of the AES Brasil’s strategy and the We Are AES Culture.
Therefore, after understanding their role in the compliance with the Group’s strategy, all
employees of AES Brasil contribute to meet the Sustainable Strategic Plan Cycle’s goals.
AES Brasil at Rio +20
During Rio+202, AES Brasil’s CEO, Britaldo Soares, discussed about the preparation and
implementation of the Sustainability Platform and the Group’s need to focus on and be
committed with the sustainable development of all company, demonstrating how the
sustainability is effectively related to the business.
AES Brasil actively participated in Rio+20. The staff that attended to the event contributed
with significant discussions on the essential changes in governance structures, business
management and human behavior deemed necessary to the commitment with the
sustainable development.
The company was also involved in technical discussions that aim at identifying the electric
energy solutions to generate less environmental and social effects without, however, result
in loss of efficiency. The presence of the company confirmed the recognized position that
AES Brasil is assuming with respect to the matters related to the sustainability in the
electricity sector. We participated, as well, in the preparation of the document “2050
Brazilian View – a new business schedule in Brazil”. Prepared by the Brazilian Corporate
Council for Sustainable Development (CEBDS), the purpose of the document is to provide
a future sustainable view and determine the possible alternatives to ensure this. Another
aspect that reinforces the company’s commitment with sustainability is the appointment of
Britaldo Soares for the Board of Directors of CEBDS and as member of the Sustainability
Committee, of Amcham.
2
United Nations Conference about the sustainable development that joined, in June 2012, the political, business and civil leaders of
several nations to enter into proposals and agreements for the sustainable development.
21
Sustainability Platform
GRI 4.16
In 2012, the Sustainability Platform of AES Brasil faced an important process of
consolidation and dissemination in the Group’s companies. The alignment with the Strategic
and Sustainable Planning is an important effect of this consolidation and already ensures
effective results for the organization.
With respect to the safety subject – the company’s most important value – several actions
were undertook in the concession area of AES Eletropaulo in order to ensure a reduction of
19% of fatal accidents with the population (for further information, see page 30).
Another important subject was the innovation and excellence of the Customer Satisfaction,
in which AES Eletropaulo reached the best index of Customer Satisfaction in the Abradee
ranking since the research was performed for the first time (for further information, see page
36).
With respect to the development and valuation of employees, it was given sequence to the
program for development and recognition of the best practices through the Supplier
Financial Performance Index (IDF) (for further information, see page 70).
With respect to the development and appreciation of communities, the Strategic Planning
and the Sustainability Platform allowed the consolidation of the Corporate Social
Responsibility Management System (SGRSC), which defines the guidelines of the private
social investment, allowing, therefore, the company to improve its operations at the
communities and align its social investments to the business strategy (for further information
on the SGRSC, see page 74).
In terms of platform management and governance, the Sustainability Committee met four
times in 2012 to monitor the 38 commitments and reported the updated information to the
Board of Directors and to the Supervisory Board two times.
One of the main decisions of the Sustainability Committee was the approval of the
company’s main sustainability indicators that must be reported on a quarterly basis
beginning 2013.
Sustainability Policy
GRI 1.2; 4.14; 4.17
The commitment of AES Brasil with the sustainable development is defined in the
documents that express our identity (View, Values, Ethics Code) and sustainability policy as
explained in our website (www.aesbrasilsustentabilidade.com.br).
22
INDICATORS
SAFETY
2011
2012
Performed
Goal
Performed Status
Nº of fatal accidents with employees
0
0
0
Nº of fatal accidents with contracted
0
0
1
Total nº of fatal accidents
0
0
1
Nº of accidents with and without leave of employee
64
51
36
Nº of accidents with and without leave of contracted
70
56
71
134
107
108
87
70
89
Total nº of accidents with and without leave (including fatal accidents)
Total nº of accidents with the population
INNOVATION AND EXCELLENCE FOR CUSTOMER SATISFACTION
Performed
Goal







Performed Status
DEC (Duration Equivalent of Interruption per Unit Consumer)
10.36
8.67
8.35
FEC (Frequency Equivalent of Interruption per Unit Consumer)
5.45
6.87
4.64


INS (Index of Level of Service) of Call Center (% of clients we responded in up to 30
seconds) – Annual average
88.8
89.0
91.7

EFFICIENCY IN USE OF NATURAL RESOURCES
Performed
Goal
Performed Status
Recycled residue and/or reused / Quantity of generated residue (%)
11%
16%
55%
Own consumption of electric energy (MWh)
55%
53%
44%
162,218
158,974
358,799
Direct and indirect emission of CO2 - Losses and fuel - (tCO2e)
EFFICIENCY IN THE USE OF POWER RESOURCES
Global losses (%)
Performed
Goal



Performed Status
10.51 %
10.30%
10.30%
Own consumption of electric energy (MWh)
45,251
44,346
44,198


Energy saved in the projects of Energy Efficiency and Transformation of Consumers
into Clients
62,338
46,000
116,685

(MWh)
DEVELOPMENT AND VALUATION OF EMPLOYEES
Rate of voluntary turnover – own employees (%)
Performed
8.8%
Goal
6.0%
10.5%
DEVELOPMENT AND VALUATION OF COMMUNITIES
Performed
Nº of beneficiaries by social projects of the company
1,231,000 1.231,000 1,682,000
mil
46,203
50,000
55,000
Nº of benefited families by the low income project
Goal
Performed Status

Performed Status


Knowledge of the Platform by the Employees
For the dissemination and adhesion of the Sustainability Platform in AES Brasil, it was
performed a research, on a sample basis, of the internal communication focused on this
subject, applicable to 600 employees, of all levels of authority.
The results indicate that, although most part of the persons interviewed declared to be
aware of the Sustainability Platform, the percentage of those that “know well” it is solely
17%. This information shows that, despite of the efforts undertaken to disclose the strategy,
still needs to be done a strong work, mainly focusing the role of the leaders as the persons
responsible for such disclosure. Accordingly, in 2013, it will be put in practice the Education
for Sustainability Program (commitment of the related matter Education for Sustainability),
23
not only to improve the knowledge on the Platform, and also to allow each employee to
understand how to use the sustainability principles in the personal and professional routine.
Dialogue Cycle
GRI 4.14; 4.16
Between September and November 2012, AES Brasil Group carried out the fourth edition of
the Dialogue Cycle, an engagement process that gathers the groups of the target audiences
to evaluate how the organization is in accordance with its expectations and demands. The
aspects discussed in these meetings are used as the support and feedback for the
corporate actions.
The 2012 edition was attended by 97 persons, including employees, suppliers and clients
(corporate and residential) of AES Eletropaulo.
Public Commitments
GRI 4.12; 4.13
The companies of the AES Brasil Group are the signatories of the Global Agreement and
promote the Millennium Goals, the initiatives of the United Nations Organization (ONU).
The Global Agreement stimulates the business community to adopt, sponsor and promote
ten basic and universal human rights, labor practices, environment and prevention practices
against corruption and bribery. The signatories are invited to introduce the ten conduction of
business and activities and report its progress to ONU and to the company on a yearly
basis. Beginning 2005, AES Eletropaulo is the signatory of the Global Agreement and
discloses, on a yearly basis, the performance of its activities, as well as the social and
environmental effects through the sustainability report.
The Millennium Goals, on the other hand, are comprised of eight set of guidelines that
promote education, balance, reduction of child mortality, health of pregnant, fight against
Aids and other diseases, fight against starving, respect to the environmental and worldwide
development.
AES Eletropaulo adhered, in 2008, to the Business Agreement for Integrity and against
Corruption, participating in discussions with the community about the situation and
stimulating the business citizenship. The distributor maintains the relationship mainly with
the following:

Brazilian Association of Power Distribution Companies (Abradee): contributes
to the operational and financial and economic excellence of concessionaires, focused
on serving the customer;

Union of the Energy Industry in the State of São Paulo (SindiEnergia): studies,
coordinates, protects and represents the agents of the energy sectors in the state of
São Paulo;

Ethos Institute for Business and Social Responsibility: assists companies in
incorporating the concept of social responsibility in their management, by making use
of an incessant evaluation and improvement process;

Abrinq Foundation: mobilizes the society towards issues related to the children and
adolescent rights. AES Eletropaulo participates in the Company Friend of the
Children Program, which encourages private social investment in measures on behalf
of children and adolescents;
24

Unidos Group: a partnership between the U.S. diplomatic bodies in Brazil and the
U.S. companies headquartered in the Brazilian territory, whose purpose is to
disseminate the investment of companies which participate in environmental and
social and economic development projects and promote corporate social
responsibility before diverse segments of the society;

Brazilian Corporate Council for Sustainable Development (CEBDS): it comprises
the principles and practices of the sustainable development in the business context,
reconciling the economic, social and environmental aspects;

Companies for the Climate (EPC): a permanent business platform, organized by
Fundação Getúlio Vargas, whose purpose is to organize, inform and structure the
business leaderships for the management and reduction of the greenhouse gases, as
well as climate management and proposals for public policies and positive incentives
in the context of the climate changes;

Global Reporting Initiave (GRI): in 2012, AES Eletropaulo, through AES Brasil, was
classified as the Organizational Stakeholders, which means that the company is one
of the key members that contributes with knowledge, performing an important role in
the company’s governance;
International Integrated Reporting Council (IIRC): by means of AES Brasil, AES
Eletropaulo participates in a international association between the regulatory bodies,
investors, companies, ONGs and other entities whose purpose is the progress of the
corporate performance reports, including economic, financial , social and
environmental results.

AES Eletropaulo understands that the adhesion to voluntary commitments is important for
the discussion on matters deemed relevant to the company, as well as for joint resolutions
to the current challenges.
Based on this, the company was committed to “engage again or identify and comply with the
Voluntary Commitments related to the sustainable development through 2013, in the context
of the related matter of Integration of Public Relations.
Corporate Management
AES Eletropaulo received, for the second time, the National Quality Award, which recognizes the
best management practices.
GRI 4.5
AES Eletropaulo received, for the second time, the National Quality Award (PNQ) that
recognizes the best management practices. The company was one of the six awarded
between 41 candidates
The management of the companies of AES Brasil Group is guided by the Strategic and
Sustainable Planning and follows the Management Excellence Model (MEG), of the
National Quality Foundation (FNQ), comprised of 11 excellence points3. Such points are
converted into excellence criteria that, among other things, allowing the determination of the
maturity degree of the company’s management.
3
Systematic thought; organizational learning; innovation culture, leadership and during purposes; direction by proceedings
and information, future view; generation of value; people appreciation; knowledge on the customer and the market
development of partnerships and social responsibility.
25
This measurement is performed through the independent evaluation and within the cycle of
PNQ, an FNQ’s initiative that acknowledges the world class companies, considered as
holders of the best management practices.
The organizations that participate in the PNQ are evaluated based on MEG and in
accordance with the scale that varies between 0 and 1,000, divided into ranges. AES
Eletropaulo had already been recognized by PNQ in 2009 and through the Ibero-american
Quality Award in 2010.
As an integral part of the Management Excellence Model of the AES Brasil’s companies and
as an important instrument for the organizational direction, the Strategic Planning is
reviewed on a yearly basis. This revision counts on the participation of the leaderships and
comprises all the company’s areas. The process is developed during the first six-month
period of the year, as a way to direct and improve the culture of organizational performance
in the short term (one year) and in the long term (five years), as set forth in the Strategic
Plan Cycle.
In 2012, AES Eletropaulo also won, in an integrated manner, the certifications ISO
14001:2004, which attests that quality and excellence of the company in the practices and
actions related to the Environment, and BS OHSAS 18001:2007, health and safety standard
of work.
Another important victory to AES Eletropaulo in 2012 was the renewal, for the third time, of
the ISO Certification 9001. The certification ensures that the company is in accordance with
the requirements of ISO Certification 9001:2008, which covers the quality management.
Strategic Plan Cycle
GRI 4.5; 4.16
The Strategic and Sustainable Planning of AES Brasil is developed on a cycle basis,
allowing eventual corrections and adjustments over the process. The cycle of the strategic
planning is comprised of two stages: definition and establishment of the strategy.
During the definition stage, between January and June, the Xtrategy takes place, which is a
method to define the strategy developed by AES Corp. and adjusted by AES Brasil. The
Xtrategy allows the risk analyses and opportunities based on the following: macroeconomic
estimates; regulatory and political environment; projected market expansion; corporate risk
matrix; Swot matrix; and specific challenges related to each business.
Beginning June, the strategy is implemented, during which stage the discussions are
performed for the preparation of the budget of the company and the definition of the main
initiatives/projects for the definition of the strategic guidelines and commitments assumed in
the Sustainability Platform.
Between September and October, the budget assumptions and the projections of the
financial statements are discussed and approved by AES Corp. and the National Social and
Economic Development Bank (BNDES).
In accordance with the allocation of the resources approved by the respective boards, the
respective action plans are detailed and related to the strategic guidelines, including terms,
goals and responsible persons.
Between November and December, the individual goals and targets of the main executive
officers of the Group’s companies are defined, in accordance with the Strategic and
26
Sustainable Planning and the budget approved. Finally, all commitments are executed
through the management agreements (see below).
The last stage for the implementation of the strategy refers to the learning and adjustment,
in which the learning's of the previous process, is the starting point for the new cycle.
The report and disclosure of the long-term strategy, purposes and strategic goals for all
company's employees take place in February of the next year.
Forums of performance
On a monthly basis, the Performance Forums are performed, which are the meetings whose
purpose is the management and analysis of the performance, including the results from the
strategic and tactical indicators, as well as the revision of the action plans.
There are three types of meetings:


Results Meeting: material facts, points of attention and resolutions;

Preparation Meeting: tactical/operational plan and performance plan of the
management agreements.
Business Meeting: strategic and performance plan of the business and main
processes;
Intangible Assets
The non-accounting intangible assets comprise an important part of the Strategic and
Sustainable Planning and, in order to maintain them aligned with the business strategy, the
companies of the AES Brasil Group provide for a set of systems that allows the updating of
information, attraction and retention of persons and development of communities, in addition
to the innovation of products and processes.
The nonaccounting intangible assets are identified and evaluated based on the market,
technological and administrative aspects. Based on this analysis, these assets are classified
as follows:



Human – capacity, experience and knowledge;

Technological – research and development, processes and products.
Market – brand, clients and relationship;
Infrastructure – sundry systems and client master file; and
One of the Sustainability Platform Commitments of AES Brasil with respect to the Efficient
Use of the Resources is to restructure the management of these assets through 2014,
adjusting the definition, monitoring and measurement processes.
Risk Management
The Integrated Risk Management of AES Brasil allows the identification of and control over
the most significant corporate risks (which could affect the image and capacity of the
strategic goals and purposes) based on The Committee of Sponsoring Organizations –
Enterprise Risk Management methodology (Coso-ERM). This methodology allows that the
risks identified are classified based on the related probability and effects in the matrix
denominated heatmap.
27
The risks inherited to the businesses are grouped in four areas: strategic, financial,
operational and regulatory. These areas are divided into 57 categories. All risks are properly
addressed with an action plan, through a monthly monitoring of the key risks. The other
risks are monitored in intervals between four and 12 months.
In addition, some risks are monitored through the Key Risk Indicator (KRI), which verifies its
performance and is used as an advanced warning with respect to the related exposure or
potential loss.
STRATEGIC
INTANGIBLE ASSETS
GOVERNANCE
MARKET
MARKET STRATEGY/
ELECTRICITY SECTOR
Reputation
Technological
innovation
Policies and
internal controls
Organizational
structure
Relationship/ Water
shortages
Politics
Macroeconomic
scenario
Recruitment and
Retention of
talents
Succession and
Person
Dependence
Integrity in
Client´s
Registry
Unethical
conduct
Relationship with
stakeholders
Energy contracting
Continued
operations
Planning and
budget
Development
incentive
Market share and
competition
Products and
services
development
Investment decision
FINANCIAL
Merger and
acquisition
REGULATORY
Actuarial
Credit
Liquidity
Electricity sector
Welfare plan
Collection and default
Commodities
Tariff review
Concentration of receivables
Exchange rate
Concessions renewal
Access to capital
Debt acceleration
Cash flow
OPERATIONAL
Proceedings
Sector infrastructure
Personnel
Information and
technology
Community
General
Material and services
supply
Equity management
Training
Access to information
Public safety
Labor
Contractual obligation
Quality in provision of
services
Health and safety
Availability of systems
Environment
Civil
Commercial losses
Technical losses and
energy efficiency
Relations with unions
Integrity of systems and IT
environment
Project tracking
Operational capacity
Third parties
Operational efficiency
Benefits
Tax/ fiscal
Accounting
practices
Target Audience
GRI 4.14; 4.15; 4.16; 4.17
Aiming at making its actions more effective and to meet the specific demands, AES Brasil
approved in 2012 a revision of the target audience map. With the involvement of the
leadership, the project, which started in 2011, resulted in the reclassification from six to ten
sets of target audiences of the company. In accordance with its level of relationship and
influence, the audiences were grouped as the ones that:
28

Influence: Press, Electrical Sector Agents, Organized Civil Society and Communities;

Support: Employees, Shareholders and Lenders;

Depend/Support: Suppliers and Clients; and

Regulate/Inspect: Public Power and Regulatory Bodies.
Integration of Relation Network
In order to ensure that the business management is able to meet to the expectations of our
target audiences and generate the contributions to the Strategic Plan Cycle, AES Brasil
structured and systematized its engagement process based on the international rule
AA1000. Thus, the company aims at obtaining expectations and demands, as well as the
sustainability aspects that could be controlled and over which the AES Brasil Group has
control.
This process is important to ensure that the expectations of these target audiences are
considered in the Strategic and Sustainable Planning in a clear and transparent way.
The application of the procedure in 2012 with the target audience, complies with the
commitment presented in its Sustainability Platform, as well as it starts the systematization
of a procedure to be applied to all target audiences of the Group in the next years. In 2013,
for example, the company will extend its scope by including the investors focused on the
publication of its first integrated report in the next year. Learn more about this Project on
page 20.
Safety
It is the attitude protecting the life of our employees, suppliers and community
Sustainability Commitment
Current Status
Next steps
Not reached. A fatal accident with an
employee of a partner was recorded.
Maintenance of routine of safety
inspections, safety walks, internal
and external audits, security
dialogues, risk assessments before
starting the services, news events
and training
Reduce in 20% of accidents with
and without removal (own and
contracted)
Reached. It was registered a
reduction of 23% in relation to the
previous year
Maintenance of routine of safety
inspections, safety walks, internal
and external audits, security
dialogues, risk assessments before
starting the services, news events
and training
Reduce in 20% per annum total
accidents with population
Not reached. Although it has been
observed a reduction of 19% in fatal
accidents, it was registered an
increase of 2.2% in the total of
accidents
Improvement in the safety campaign
with the population
(2012-2016)
No fatal accidents (own and
contracted) per year
*The metric for monitoring of meeting the commitments of reduction of accidents is under review.
29
GRI LA8; LA7; LA9; PR1; EU16; EU18; EU20; EU21; EU25
Safety is the value number 1 of AES Brasil. This means that nothing is more important than
ensuring the physical integrity of the employees, suppliers and of the 16.6 million people
that on a daily basis enjoy the well being provided by the electricity in the concession area
of AES Eletropaulo.
The challenge is to reduce the accidents. Therefore, the safety efforts undertaken by AES
Brasil Group aims at anticipating the risks and seeking the preventive actions that would
represent the best safety conditions for all persons.
The Safety Programs of the AES Brasil’s companies are based on the global guidelines of
AES Corp. and on the Occupational Health and Safety Management System (SGSSO).
The requirements of the SGSSO are in accordance with the specifications of the OHSAS
18001 (Occupation Health Safety Assessment Series), an international rule focused on the
health and work safety, directed to the preservation of the physical integrity and health of
the employees and partners through the practices of mitigation of risks in activities and
facilities. As a result of the adherence of its Safety Management System, the company
received, in 2012, the OSHAS Certification 18001.
Although out of the three commitments, two commitments were not reached in 2012, AES
Eletropaulo recorded significant results, such as the reduction of 44% in the number of
accidents with own employees and decrease of 19% in the fatal accidents with the
population. Similarly to 2011, the company has not recorded any fatal accident with its own
employees.
According to the Occupational Health and Safety Management System of AES Brasil, the
Group received the award in 2012 from Fundação Coge, under the Labor Safety and Health
Management category. In December 2012, AES Eletropaulo was certified in Rule OHSAS
18001. The good performance, although, did not repeat with the outsourced companies and
one fatality was registered in 2012.
Workforce Safety
GRI LA7, LA8
The Safety Program of AES Eletropaulo, including all company’s practices, was prepared to
contribute with the consolidation of a safe environment through the commitment with
continuous improvement. This program is based on the Standards of AES Corp., 25 safety
standards focused on the improvement of procedures and practices and also based on the
compliance with the requirements of rule OHSAS 18001.
In order to ensure the effectiveness of the safety actions performed, the company monitors
such actions through the AES Corp. – Safety Management System, whose process is based
on a continuous cycle comprised of four stages:

Plan: identify the safety risks and define the goals;

Execute: include trainings, qualification and operational controls;

Verify: monitor the progress of the goals and perform the corrective actions;

Review: include the progress analysis actions to develop the changes, if necessary.
During 2012, it was given continuity to all practices set forth in the Safety Program, reaching
a reduction of 44% in the number of accidents with and without the leave of own employees
and increase of 1% in outsourced employees.
30
Work Health and Safety
2010
2011
2012
14.002
13.679
23.799³
TF (frequency rates)¹ – employees
6,55
5,994
3,29
TF (frequency rates)¹ – contracted parties
5,26
3,87
4,27
TG (severity rates)² employees
672
49,67
33
TG (severity rates)² – contracted parties
349
53,49
500
Fatal accidents – employees
1
0
0
Fatal accidents- contracted parties
0
0
1
634
644
36
874
704
71
4604
2614
366
1.1414
9684
8.433
Investments in Safety Programs (R$ thousands)
Occupational accidents with and without suspension –
employees
Occupational accidents with and without suspension –
contracted parties
Discounted/lost days – employees
Discounted/lost days – contracted parties
1.Frequency rate/ 2. Severity rate: accidents with suspension per million of men-hour of exposure to the risk over one year
3. In 2012 the company began to account for investments in individual and collective protection equipment (EPC / EPC) in total
investment in safety. 4. Information rectified in relation to previously reported change in methodology for calculating the
indicator.
Safety Program
GRI LA8
The Safety Program of AES Eletropaulo is comprised of several actions, comprised mainly
of the following:
Safety Walk
The Safety Walk is an initiative of AES Brasil Group and involved the leadership (CEO, viceCEOs, executive officers, managers and coordinators) of several areas operating in the field
in order to monitor the activities performed by own and outsourced employees, as well as
identify and eliminate the conditions and behaviors not in accordance with the security
policies.
In 2012, the leaders of AES Eletropaulo performed 27,166 safety walks, reaching the goal
set forth for the period. As a result of such walks, the leaders recorded all insecurity
conditions and all action plans for the correction and prevention were set forth for each one
of them, based on the study in each case.
Leader in Action
In order to skill the leaderships in order to guide and oversight the staffs for performing safe
work and, therefore, ensure the efficiency of our initiatives, this practice offers the training
based on three aspects (safety, quality and productivity) to the leaders that operate directly
in the field.
Safety Blitz in Contracted Companies
The Safety Blitz is a practice adopted by AES Eletropaulo with the contracted companies of
the Electrical Power System (SEP). This refers to a visit to suppliers for a safety inspection
in order to resolve the insecurity conditions in the entire value chain. In 2012, 10 blitze were
performed in the contracted companies.
31
Event Report
It is a communication line of the Integrated Management System with the employees to
stimulate the communication of probable accidents and behaviors or insecurity conditions in
the work environments, in addition to the environmental events. Accordingly, the company
ensures that all events that could potentially result in environmental accidents are reported
and verified, in order to perform the actions to eliminate the risks. The employees may also
provide suggestions with respect to the company’s safety and environmental practices. The
reports received are analyzed, classified and addressed in accordance with the event
potential. In 2012, AES Eletropaulo received 15,872 reports.
Safety Discussion
It comprises periodical meetings – monthly and weekly – aiming at providing information to
all employees with respect to all matters such as: environmental safety, result of the
inspections of accidents and reports on significant events, performance analysis,
occupational health, results from the field inspections, safety campaigns, technical and
operational procedures with significant effects on the safety or environment, among others.
Zero Tolerance
It comprises the prompt, effective and efficient actions based on the safety inspections
directed to identify and eliminate the insecurity conditions that could result in severe or fatal
accidents. The preventive actions reinforce the prompt leadership role to maintain and
develop a safe environment and the use of the controls to ensure that the safety conditions
in field are being complied.
Megasafety Inspection
Its purpose is to determine the existence and conditions of the tools, material, vehicles and
protection equipment. These are coordinated by technical managers, operational
coordinators and safety coordinators and technicians.
Safety Committees
GRI LA6
Four Committees represent the employees from AES Eletropaulo with respect to the
matters of health and safety. These Committees comprise 100% of the company’s
employees. The goal for 2013 is to ensure the periodicity of the meetings of each
committee.
COMMITTEE
Work Safety
AES Brasil
Work Safety
AES Eletropaulo
MAIN CARACTHERISTICS
Approves safety goals and targets for AES Brasil Group’s companies, monitors the
main performance indicators, and approves investments and the allocation of
emergency proceeds for prevention or correction of safety related questions.
Monitors the indicators in detail by Regional Board of Directors and by the main
contracted companies; evaluates the main performance matters and the definition of the
preventive or corrective actions; aligns the activities, by continuously communicating the
members; recognizes monthly the employees that were recognized in the health and
safety matters.
32
Regional Committee and
Executive Committee of
Work Safety of
AES Eletropaulo
Internal Commission for
Accidents Prevention (Cipa)
Analyses the main indicators of safety in each regional; as well as discusses with the
local safety staff the actions to be performed; and organizes the Critical Analysis
Meeting (RAC) involving their own or third party leaderships.
It provides information and seeks for resources for prevention and improvements. It is
divided into subcomissions, which discuss differentiated subjects and address the
discussions to the CEO of Cipa. Each Board of Directors has specific analysis and the
subcomissions define how each area should act.
Safety for the Population
In 2012, AES Eletropaulo improved its actions directed to provide information to the
population on the risks of the electric energy in the context of the Viva sem Acidentes
Movement. The reduction of 19% in the accidents (from 16, in 2011, to 13, in 2012) is the
result of more than 153 safety blitze; 372 trainings for the civil construction professionals;
3,777 safety lectures and 6,199 presentations of the safety trucks, reaching an audience of
1.27 million people.
All these initiatives were reinforced by an intensive media campaign, since 2011, which
aimed at advising and warning the population with respect to the need of adopting safety
measures in relation to the electric network. In order to directly reach the population, the
campaign performed actions in the soccer stadiums, samba communities, public schools,
communities, work sites and trains of the Metropolitan Trains Company of São Paulo
(CPTM).
The focus of the campaign was the customers of classes C, D and E. Accordingly, the
campaign adopted a simple language based on the daily activities of the population in order
to ensure that the message could be better understood by the highest number of persons.
As recognition for the work of AES Eletropaulo in the execution of these actions, the
campaign resulted in the 2012 MaxiMídia Award, received from Meio & Mensagem
magazine, under the category “Best Mix Media Use”.
The fatal accidents with the population decreased in 19% between 2011 and 2012; but the
total number of accidents increased from 87 in 2011 to 89 in 2012. Between 2009 and 2012,
the total of accidents decreased 33% and the fatal accidents, 50%.
GRI EU25
33
Safety Day with the Population
In order to reinforce and continue with the initiatives to provide information of the electric energy risks to its
clients, on June 29, 2012 AES Eletropaulo launched the Safety Day with the Population. The action
comprises in the provision to the population of safety tips through interactive activities. Amongst the
attractive measures of the event, we count on the lan house truck equipped with interactive game that
challenges the participants with the exercises of “right or wrong” with respect to the electrical installations, in
order to stimulate the changes in the behavior and proper and safe use of electric energy.
Electric and Magnetic Fields
The electric and magnetic fields are always implemented in the electricity transmission. In this
regard, AES Eletropaulo adopts cautions and preventive measures with respect to the exposure of
the population during the development of the projects, in accordance with the recommendations of
the Worldwide Health Organization (OMS).
Under applicable legislation (Federal Law nº 11934, of May 5, 2009, regulated by ANEEL Normative
Resolution 398, of March 23, 2010), the company performed the studies for the measurement and
simulation of the magnetic fields and follows, on a periodical basis, the analysis of the institutes on the
matter. This monitoring is performed in partnership with the Brazilian Association of Electromagnetic
Compatibility (Abricem) and provides support to a research and development project with the purpose
to oversight the exposure levels of the employees and population to magnetic fields of 60 hz generated
in substations and subtransmission lines and, therefore, comply with the safety limits in all facilities.
The company aims also at defining the most adequate architecture for the electrical system and the
development of the remote sensitive terminals of the magnetic fields in the selected places (metrics). In
addition, the Project includes the development of a database that could provide the information to the
population and governmental agencies (federal, state and municipal), in accordance with Bill
2.576/2000.
In 2010, AES Eletropaulo has installed sensors in line Pirituba-Bandeirantes which allowed the
monitoring, in real time, of its electromagnetic field. In 2012, the tests of the new measurement system
were successfully completed, which innovates such in terms of calculation of the distance between the
field and buildings and portability, as allowing the measurements to be performed in several places.
Thus, it may be used to evaluate the levels of the magnetic fields in the areas next to the electric grid
34
Innovation and Excellence for the
Customer´s Satisfaction
Provide an environment and culture that offer solutions to improve the life of persons and
ensure the quality and excellence in the services rendered to the customer
Sustainability Commitment(20122016)
Current Status
Next steps
Reach a level above 85% of
customer satisfaction of AES
Eletropaulo at Abradee research,
until 2015.
In progress. Index in 2012 was of
80,6%, surpassing the goal set for
the year, which was 77.2%. This
result was achieved due to the
investments in the power distribution
network, the modernization and
expansion of channels and training of
operational and commercial staff.
Continue investments in the
distribution network and in the
modernization of the service
channels.
Implement an internal structure to
ensure the promotion and
management of innovative
practices and projects, through
2012.
Reached. 100% of action plan was
implemented, with the remodeling of
the internal structure of the team, as
well as the management of the
innovation projects. Once fulfilled,
this commitment no longer exists
from 2013
Maintenance and improvement of
internal structure
Promote an organizational incentive
culture, through 2014.
In progress. Reached 100% of the
planned for 2012, with the
performance of internal campaigns
with the “Innovation Week” and the
participation in awards and events of
the sector, on the theme Innovation
Define focus and concept of
innovation for AES Brasil that will
serve as base for the next internal
campaigns, which shall include
mobilization action and
recognition
Implement five innovative solutions
and clean technologies in AES
Brasil that would generate value to
our interested parties, by increasing
quality and reducing the
environmental and social costs and
effects of our operations, through
2016.
In progress. Reached the goal of
mapping and beginning five
innovative projects
Monitor the implementation of five
projects already defined and
prospect strategic and
sustainable projects for the
maintenance of portfolio
Spread the innovation concept and
strategy in the value chain and
establish partnerships which extend
the results until 2016.
Not started. This commitment was
prioritized to start its planning from
2013, after the definition of the new
concept and the focus of the
company's innovation
Define the new concept of
innovation and focus of AES that
will allow the spread in the value
chain and strengthen the
relationship with suppliers to seek
solutions and common interests
AES Eletropaulo is a company that daily seeks for renewal and more efficient measures to
its practices. The company believes that simple acts can contribute to improve the routine of
the persons in the development of their daily activities inside and outside their work. In order
to disclosure this culture amongst its employees, AES Eletropaulo created, in 2011, an area
to stimulate the innovation and implement the innovation culture in the company.
In addition, AES Eletropaulo has invested in the innovation of the electricity grid. Over the
last years, there were investments in the promotion of a more intelligent grid, resulting in an
35
energy of highest quality and reliability to approximately 6.5 million customers of the
company. The results from this investment can already be confirmed and in 2012 it has
been recorded the best operational performance indices of the company’s history.
GRI PR5
The excellence in the customer service and the continuous improvement in the rendering of
the power supply are the assumptions adopted by AES Eletropaulo. In 2011, there was a
significant effort in the company to reorganize our customer care infrastructure, including
initiatives such as the improvement of the electronic customer care channels, opening of
new stores that offer assistance in person and launching of the platform of digital customer
care, the Mobile Web; in addition to the high investments in the field staffs and grid
technology.
Due to all this initiatives, an important objective was reached: increase the customer
satisfaction level. This index is measured by Abradee and, in 2012, the company received
grade 80.6 in the Quality Satisfaction Index (ISQP), the best index in 14 years, and 9.1
points greater than the research in 2011. This result leaves the company closer to the next
goal of 85% established for 2012. The expectation for the next years is to have a better
position in the association raking, from the 13th position to the 5th position through 2016.
In 1999, the Abradee research is performed annually based on the five themes of the
Quality Satisfaction Index , namely: Power Supply; Information and Communication; Light
Account; Customer Service; Image. In the total, 625 customers are interviewed in person to
contribute with the research that determines the level of satisfaction with the electricity
distributors.
The growth in 2012 is the result of the investment made by the company over the last years.
It has been R$831.1 million, an increase of 12.5% compare to 2011, focused in
maintenance, expansion, grid modernization and customer services.
2010
2011
2012
Levels of satisfaction obtained by research IASC-Aneel (%)
62,37
ND*
61,5
Level of satisfaction with Perceived Quality by residential customers
(ISQP) –Abradee research (%)
76,6
71,5
80,6
Quality of Services
Amongst the important investments between 2011 and 2012 in the customer services to
ensure the customer satisfaction, we include the following:

increase of 150 positions in the call center, in addition to the 400 positions available
so far;

engagement of 300 customer care positions with variable service capacity that will
be in stand by for emergency cases;

improvement of the electronic service capacity from 2,000/hour to 54,000/hour;

implementation of the Mobile Agency for field services in critical days.
In order to continue with the projects for improvement of the customer service, in 2012, the
company launched 14 new points of services in person, totaling 40 units that provide
36
several services to the customer, as second electric energy invoice, master file changes,
fraud reports, claims due to the lack of electricity, installation requests, indemnity claims for
electricity damages, amongst others.
In order to improve the customer care services, in 2013, AES Eletropaulo will provide, in its
customer service points, 127 self service terminals, 50 totens and 77 telephones (Fale
Fácil), transferring part of assistance in person to electronic points.
Customer Service Lines
Virtual Center
http://www.aeseletropaulo.com.br/Paginas/Servicos.aspx
SMS
27373
24 hour customer service number
Emergency calls: 0800 72 72 196
Business hour calls: 0800 72 72 120
Special call to hearing impaired customers: 0800 77 28 626
Stores that offer assistance in person
http://www.aeseletropaulo.com.br/clientes/Paginas/lojas.aspx
Services Network Assistance
In 2012, it was made a replacement on the assistance in person of AES Eletropaulo. The
current network, with 37 points strategically positioned, aims at the improvement in the
quality of the assistance by means of the centralization of services.
The selection of assistance points was made by a study prepared by the company which
include four main aspects: establishment of the ideal productivity per assistance position;
assessment of the average monthly demand of assistance per region; calculation of the
proper number of service positions per region; and exploration of the profile of the client
searching for the assistance in person.
An example of application of the method is Loja Rebouças (Avenida Rebouças nº 2708, in
São Paulo) the first to be fully reformulated in accordance with the new quality standards
enabling more comfort and agility in its service capacity.
Respect with the customer
AES Eletropaulo was elected the “company that most respects the consumer”, under the
Energy Suppliers category, according to the Consumidor Moderno magazine, as a result
of a research carried out together with Shopper Experience. The average reached by the
company was 6.44, taking into consideration that 21% of the consumers had experience
with the brand.
37
Call Center Excellence
In October, 2012, AES Eletropaulo was recognized for the best work presented in the
Brazilian Electricity Distribution Seminar (Sendi) – the most important meeting of the
representatives of the electricity sector. The winning project was the “U.R.A. – An
Automated Relationship”, which had good results from the improvement of the distributor’s
call center.
The study concluded that, with the expansion of the U.R.A. (Remote Customer Care Unit),
the capacity increased significantly, from 2 thousand to 54 thousand customers served per
hour. Such improvement enabled the increase of 19% to 43% in the withholding of calls.
Focused on the continuous improvement of the relationship with the customer, AES
Eletropaulo, beginning 2011, has invested in the expansion of the call center and in the
modernization of the points of services in person. In the total, approximately R$ 90 million
have already been allocated to these projects.
Express Invoice
In May 2012, AES Eletropaulo began the delivery of electricity invoices upon consumption
measurement. With this new system, the company reduced not solely the costs with the
delivery of the invoices, but also the environmental impacts related to the consumption of
paper and transportation of the invoices (reduction of the emission of CO2 by the usage of
fuel). This because the new equipment that measures the consumption also prints the
invoice, which is provided to the customer upon measurement. Accordingly, the
equipment communicates in long distance with the concessionaire’s billing system, which
receives the information and records the payment.
The project, developed in partnership with SAP, a recognized company in the business
management software, counted on an investment of R$ 11.2 million. In 2012, the project
was implemented in the region of Tucuruvi and currently serves 422 thousand customers.
It is expected that at the end of 2013 all 6.5 million customers of AES Eletropaulo will be
benefited with this new system.
Number of customer services
GRI PR5
38
Claim Services
GRI PR5, PR9
AES Eletropaulo provides to its customers the Ombudsman service to record eventual
statements related to the services provided by the concessionaire. In 2012, the main
registered statements related to requests for indemnity due to electricity damages (PID),
energy consumption, measurement and service orders. Together, these claims accounted
for 64% of the total claims performed during the year. The main claims received by
Fundação de Proteção e Defesa do Consumidor (Procon) relate to consumption issues
(amounts included in the invoices), including the debits charged (collection of pending
amounts and fees).
Following the analysis and calculation of all claims – taking into consideration the sector
regulation, 52% were classified as founded and the customers received the necessary
clarifications.
The Ombudsman service receives the claims recorded in the specific 0800 and also those
received by Agência Nacional de Energia Elétrica (National Electric Energy Agency- Aneel),
Agência Reguladora de Sanemaneto e Energia do Estado de São Paulo (São Paulo State
Sanitation and Energy Regulatory Agency-Arsesp) and Procon.
In February, the company received a notice of infraction in the amount of R$3,54 million of
Procon/SP. At the end of the year, the process was under administrative resource, for there
was no violation of assistance indicators, grounds used in such draft.
Solved claims (%)
During service
2010
2011
2012
50.4
57.4
63.8
In 30 days
84.10
91.29
91.04
Between 30 and 60 days
13.00
7.39
7.78
2.90
1.33
1.19
51.00
49.00
52.45
More than 60 days
Relevant Claims in relation with the total of complaints
received
Solved claims in relation with the total of relevant claims
Claims solved in relation to the number of valid complaints
100.00 100.00 100.00
100
100
100
39
Information security
GRI PR8
The safety and protection of customers’ information are extremely important to AES
Eletropaulo. In September 2012, the access to the Virtual Center was interrupted for a
period of five hours due to a possible problem with the website, which permitted viewing the
other customers’ invoices. However, these invoices were not viewed by all customers. In
order to view the other customers’ invoices, the user had to have some technical – to
combine systematically certain codes – and have the intention to obtain third-party
information. The information security staff was promptly advised and did not record the
invasion nor use of any personal information stored in our system.
Operational Excellence
Productivity (Summer Plan)
GRI EC2; EU21
Beginning 2011, AES Eletropaulo introduced the PDA (Digital Personal Assistant), which
allows the submission and completion of the service orders through a pocket equipment
similar to the smartphone, improving the performance.
In addition to the performance improvements, there were benefits in the reliability and
coverage of information, which allowed the company to prepare a more precise map of the
events and time of customer care services. Again, AES Eletropaulo seeks for technological
innovation in order to increase the efficiency of its operations and improve the customer
care services. Accordingly, the preventive measures are important. An example is the
Meteorological Monitoring System (SIM), whose information directly affected the planning of
emergency events in 2012 arising from the climate damages.
Another example of proactive measure and prevention against critical scenarios is the
Summer Plan, adopted by the company since 1996. During this period, which presents
strong rain more frequently, affecting the distribution network, AES Eletropaulo provides its
entire technical staff to meet the calls and emergency events. This integrates the company’s
human resources strategy and, despite of the dismissals due to the company’s restructuring
(see page 65), there was an increase from 264 to 473 (during summer time) in the number
of professionals that operate in the emergency calls, which improved the operational
performance indicators
GRI EU6; EU7
Renew Program
The purpose of the Renew Program is to improve and increase the effectiveness in the
performance of the activities and reduce the costs with system maintenance, in addition to
support the decision-making process. Accordingly, this program reviews the company’s
processes and the changes in the IT area that will allow the integration and modernization
of the systems responsible for the company’s operation.
The reviews will also improve the customer services and allow the implementation of
systems adjusted to the AES Brasil’s processes, improving the results to the Group’s
companies.
Through 2012, more than 100 employees of different areas operated in the Inova program
projects. In 2013, it is estimated that 350 persons will adopt the program.
40
Distribution network expansion
GRI 2.9; EC8; EU6
In addition to invest in the modernization and automation of the electric grids, it is also
necessary to invest in the expansion of the system, ensuring the distribution in accordance
with the demand of the consumer units, without breaking down the system and reducing the
quality of the electric energy distributed. Accordingly, in 2012, AES Eletropaulo invested R$
216.5 million in projects for the expansion of the electrical system.
Amongst these investments, we highlight the construction of the new substation Ermelino
Matarazzo and the improvement of the substations Santo Amaro and Cotia, which, together,
totaled 200 MVA of power to the AES Eletropaulo’s system. The results from such
expansion are reflected in the improvement of the energy quality, as it allowed the new
balance of the load in the benefited regions.
In São Paulo, 20 new primary circuits for distribution in the substations of João Clímaco,
Carapicuíba, Bandeirantes, Ibirapuera, Ermelino Matarazzo and Parnaíba were launched, in
addition to the expansion of the capacity of other 38 primary circuits in the substations of
Cotia, Monções, Tamboré, Vila Talarico, Nações and Carapicuíba, with the reconstruction of
the underground stretches. With the new circuits, AES Eletropaulo can improve the quality
of our services due to the increase in demand for electric energy in the benefited regions,
totaling approximately 230 thousand customers.
For 2013, it is estimated the construction of 47 new circuits and the expansion of the
capacity of over 25 primary circuits in the substations of Monções, Vila Talarico, Nações,
Clementino, Carapicuíba, Monte Azul, Varginha and Guaianazes.
The new cycle of tariff reviews resulted in the need of reviewing the capacity of investments.
However, the focus will be maintained on the improvement of the quality of the services
provided. Accordingly, it is estimated for 2013 the investment of R$ 178.6 million in the
construction and expansion of the distribution substations, primary circuits and
subtransmission lines.
Innovation: Aiming Intelligent Networks
GRI EU6; EU21
For AES Eletropaulo, the efficient and secure provision of services, with quality, depends
directly on its innovation culture and the continuous investment in alternatives and electricity
distribution technologies. This is a daily concern in order to meet its goal that is to ensure
the customers’ satisfaction and to be the electric best power distribution concessionaire in
Brazil by 2016.
One of the tools to meet this purpose is the efforts undertaken by the company to introduce
technologies which are able to provide the smart grids in its concession area. The smart
grids are comprised of several equipment which is able to map the traditional electric energy
grid: sensors, automation devices and smart metrics. With this set of technologies, the
company is aware – at long distance and in real time – of the volume and quality of the
electricity that is being used in each consumption unit. Accordingly, the concessionaire will
be able to remotely perform the maintenance, monitoring of irregular connections and
cutting and reconnecting the installations.
In addition to the technological improvements established over the recent years (see page
41), in 2012, AES Eletropaulo prepared the roadmap of the Smart Grid Program for the
period between 2013 and 2015, which defines a restructuring project for the region of
Barueri (SP) – in order to test the definition of the applications and functionalities of the
41
smart grids, covering the electric energy grid of the city, five substations and approximately
56 thousand metrics; and another project in Vargem Grande Paulista and Caucaia do Alto,
which aims at testing the functionalities of the smart grid. Over this period, AES Eletropaulo
will make investments greater than R$ 70 million.
Investments, modernization and quality
GRI: PR9; EC2; EC8; EU6
One of the steps for the implementation of the smart grid is the investment in technologies
that ensure the monitoring of and remote control over the distribution networks. In 2012,
AES Eletropaulo concluded the installation of 1,488 new automatic connectors, equipment
that allows the recovery of the power supply remotely, in case of interruption due to any
external effect, without the need of allocating the maintenance staff to such place. Currently,
over 3 thousand equipment is implemented in the grid. With an investment of R$ 38.9
million, the installation of the automatic reconnectors resulted in the best operational indices
(DEC and FEC) of the company’s history, as demonstrated in the table below.
The installation of the automatic reconnectors prevented approximately 990 thousand
interruptions due to the failures in the transmission in the consumer units throughout the
year, allowing an FEC of 4.65 in 2012.
Another significant effect from the investments in the automation of the electric grid is
reflected in the reduction of the amounts paid in fines imposed by the regulatory bodies
arising from the interruptions in the energy supply. In 2012, the company paid a total
amount of R$ 24.9 million in fines, a decrease of 13% compared to 2011.
Another important aspect in 2012 was the project to map the substations. In total 100
substations and 140 primary circuits4 were mapped, with investments of R$ 20.2 million.
For 2013, it is estimated the mapping of 540 connectors, secondary circuits and capacity
banks.
The investments in modernization of the grid allow customers to have access to the
electricity with reliability and quality, which are already being recognized and that reflect in
our indexes of Customer Satisfaction (see page 37). Therefore, on an integrated basis, AES
Eletropaulo seeks for innovative solutions to comply with the commitments and goals of the
Sustainability Platform and the Strategic and Sustainable Planning.
DEC and FEC
In 2012, AES Eletropaulo reached the best indexes of DEC and FEC in its history. It was
registered 8.35 hours and 4.64 times, respectively, representing a decrease of 19% in the
DEC index and 15% in the FEC index, compared to the previous year.
4 Part of the distribution network that feeds the transformers; the grid that comes from the transformers and reaches the consumption points is
called secondary grid.
42
GRI EU28; EU29
Operational Indicators
General DEC of the Company – determined value
2010
2011
2012
10,60
10,36
8,35
General DEC of the Company – regulatory limit
9,32
8,68
8,67
General FEC of the Company – determined value
5,43
5,45
4,64
General FEC of the Company – regulatory limit
7,39
6,93
6,87
DEC – Duration Equivalent to the Interruption per Consumer Unit
FEC – Frequency Equivalent to the Interruption per Consumer Unit
Electric Cab
The partnership among AES Eletropaulo, Municipality of São Paulo, Sindi Taxi and the
assembler Nissan commenced the pilot program Electric Cab – Zero Emission. The
purpose of the project is to evaluate the operational performance of ten electric taxis in a
city of São Paulo.
The vehicles are operational and we count on the support of five rapid loaders that supply
up to 80% of the total load of the vehicles within solely 30 minutes, allowing the resupply in
short stops and without affecting the daily activities.
The benefits of the project include the reduction of the consumption of fuels and, therefore,
the emission of CO2 derived from the extraction and refining of fuel and natural gas,
normally used in this category.
Distributed Energy
GRI: EC2; EU6; EU8
In April 2002, Aneel enacted a normative instruction in order to define the general conditions
for the access to the distributed generation. The rule created the Energy Compensation
System, which allows the customer to install small generators in its consumption unit and
exchange energy with the local distributor. The rule is valid in order to allow the generators
to use the alternative sources of energy (water, solar, biomass, eolic and qualified cogeneration).
Thus, the energy generated in a residential facility and not consumed and may be included
in the AES Eletropaulo’s system, which will use the credit to discount the consumption on
the following months. The credits may be used within 36 months and the information will be
included in the customer’s invoice, in order to inform the customer about the energy balance
and also to understand the invoice.
At the same time of the progress of regulation, AES Eletropaulo directed the resources of
the Research and Development Program to projects that may enable the concept of the
distributed generation in its concession area.
43
Solar energy in the city of São Paulo
With the purpose of performing it in practice, studies on technical, economic and
commercial feasibility in the use of photovoltaic solar panels in the electricity generation,
AES Eletropaulo invests in the implementation of trial plants.
The largest project will be made in the future stadium to be used in the opening of the 2014
World Soccer Cup, in São Paulo, and has the participation of AES Tietê, generating
company of Group AES in Brazil and other companies of the electrical sector and
investments of private enterprise.
On the other hand, in Parque Villa Lobos, the project aims at studying the aspects of the
distributed generation of solar energy and of the connection with the distribution network
and also developing national technology. It will be installed solar panels distributed and one
photovoltaic plant in the Park area.
The proper allocation of these resources in order to ensure balanced results with respect to all
relation network, in accordance with the company’s efficient use of resources
In the Sustainability Platform, this main theme – Efficient Use of Resources – is divided in
three types of resources: financial, energy and natural. The results are broken down below.
Efficient Use of Financial Resources
Sustainability Commitment
(2012-2016)
Current Status
Next steps
Operate with costs that would place
us in the first positions of the Aneel
ranking in terms of operational
efficiency (between 25% of the
most efficient companies).
In progress. The action fronts that
AES will need to adopt to achieve
new ranking position by Aneel,
including the new scenario of tariff
review were mapped. The company
currently occupies the third quartile
of the ranking
Establish an action plan and
annual goals to achieve the goal
by 2016
Management restructuring of the
intangible assets through 2014.
In progress. In 2012, were mapped
existing processes for the
management of intangible assets
Establish an action plan and
annual goals to achieve the goal
by 2014
The new cycle of tariff reviews of Aneel will significantly affect the revenues of
AES Eletropaulo. Therefore, the commitment with the efficient use of financial resources
becomes even more relevant and strategic for the business.
In this regard, in 2012, the Creating Value program was more relevant. The program – an
initiative of AES Brasil that seeks to improve the result of the company, either by an
increased revenue, either by optimal use of financial resources - brought a profit of R$
319.3 million, exceeding the goal of 2012 of R$ 318 million. The performance of the
program was in all areas of AES Brasil, having as main initiatives: improved performance of
collection agencies, migration of service channels, reducing labor contingencies, customer
segmentation, renegotiation of contracts, among other.
This confirms that the companies comprising AES Brasil have undertaken efforts to ensure
that the decrease in revenues does not adversely affect the target audiences.
44
Economic and Financial Performance
In 2012, the net profit amounted to R$ 107.9 million, a reduction of 93.1% as compared to
the amount of R$1,572.1 million registered in 2011. This reduction is explained by:
(i)
negative impact of R$252.1 million, due to the effect of revision and tariff adjustment
on Installment B, offset in part by the increase of R$120.9 million by virtue of the
total market growth in 1.0% in 2012;
(ii)
negative impact of R$295.4 million in 2012, related to the increase of costs of
Installment A considering the tariff homologated in July 3, 2012;
(iii)
increase of R$ 487.0 million in the expenses with Installment A in the first semester
of 2012;
(iv)
increase of 23.5% of expenses with PMSO (personnel, material, services and
other);
(v)
increase in the account other revenues and expenses due to non-recurring effect
related to the sale of AES Eletropaulo,Telecom (AES Atimus) to TIM;
(vi)
lower financial result, due to non-recurring financial revenue in 2011 (adjustment for
inflation and interests on arrears on Finsocial contribution), reduction of capitalized
interests and decrease of monetary updates due to lower judicial contingencies
balance.
Results 2012 – highlights (R$ million)
Consolidated IFRS (R$ million)
Gross revenue
2011
2012
Variation
15,240.2
15,313.7
0.5%
Net revenue
9,835.6
9,959.2
1.3%
Operating costs and expenses
6,961.4
8,442.1
21.6%
EBITDA
2,847.9
655.6
77.0%
Financial results
(21.3)
(51.6)
14.2%
Financial revenues
318.3
238.7
25.0%
Financial expenses
(339,6)
(399.6)
17.7%
Results before tax
2,323.2
98.7
95.8%
Net profit
1,572.1
107.9
-93.1%
G
GRI: EC1
Wealth Distribution - by
interested parties
Employees
2010
R$ thousand
2011
%
R$ thousand
2012
%
R$ thousand
%
(566,418)
7.71%
(551,052)
6,71%
(615.893)
10.35%
Government (taxes, fees
and contributions and
Financing/third
segment taxes)parties
(5,250,345)
71.48%
(5,729,558)
69,76%
(4.916.937)
82.60%
(180,863)
2.46%
(360,817)
4,39%
(312.179)
5.24%
Shareholders/retained
(1,347,689)
18.35%
(1,572,105)
19,14%
(107.946)
1.81%
Added value distributed
(7,345,315)
100%
(8,213,532)
100%
(952.955)
100%
45
Operating Revenue
The gross operating revenue reached R$ 15,313.7 million in 2012, a growth of 0.5% in the
period. This behavior is explained by: (the growth of 2.0% of owner-dominated market in the
period; by the increase of 1.3% registered in the line of other revenues in the same period of
comparison.
In 2012, the deductions amounted R$ 5,354.5 million, which represents a decrease of 0.9%
in the comparison with 2011. This evolution is explained by the decrease of values defined
by Aneel to CCC (Conta de Consumo de Combustíveis), PROINFA (Programa de Incentivo
às Fontes Aternativas de Energia Elétrica) and CDE (Conta de Desenvolvimento
Energético) charges, as well as of tax charges levied upon the supply revenue arising out of
the invoicing variation between the periods.
As a result of the changes mentioned above, net operating revenue was 1.3% higher than in
the comparison between the years 2011 and 2012, totaling R$ 9,959.2 million.
Operating Revenue (R$ million)
Supply revenue
13,558.0
13,609.0
Var (%) 2011 x
2012
0.4%
Other revenues
1,682.0
1,704.7
1.3%
Total gross revenue
15,240.2
15,313.7
0.5%
Deductions of gross revenue
(5,404.6)
(5,354.5)
-0.9%
9,835.6
9,959.2
1.3%
Net revenue
2011
2012
Operating costs and expenses
In 2012, operating expenses rose 20.9% compared to 2011, totaling R$ 8,389.5 million. The
costs are detailed below:
2011
2012
Variation (%)
2012 x 2011
Installment A
5,689.1
6,858.5
20.6%
Electricity bought for resale
4,464.1
5,376.3
20.4%
Transmission
1,225.1
1,482.2
21.0%
PMSO
1,250.7
1,531.1
22.4%
Personnel
545.9
704.6
29.1%
Third party services
461.0
503.0
20.9%
Materials
51.7
62.5
9.1%
Others
192.1
261.0
35.9%
6,939.8
8,389.5
20.9%
Operating expenses (R$ million)
Total
46
Installment A

The expense on electricity purchased had increased by 20.4% in the year due to
higher purchase volumes and increased average price of purchased power.

In 2012, expenses with transmission and electric network usage charges grew by
21.0% compared to 2011, due to the increase of charges of Basic Network, the ONS
(Operadores Nacional de Sistema) and the System Service Charge (ESS).
Personnel
Costs and expenses with personnel increased by 29.1% in the year due to the following
factors:
I.
restructuring of the workforce according to the internal review process in search of
greater efficiency, which will further benefit the results of the company;
II.
increased costs to the private pension entity; and
III.
increase for the readjustment of wages, charges and benefits from 2011 and 2012.
Personnel- in millions R$
2011
2012
Var (%)
Personnel and charges
433.0
537.9
2012 x
24.2%
2011
Pension entity
112.9
166.7
47.6%
Total
545.9
704.6
29.1%
Third Parties Services and Materials
The expenses with materials and services from third parties closed the year at R$ 565.5
million, with an increase of 10.3% compared to 2011, mainly influenced by the expenses
with the Action Plan 2011-2012 and operational bases reform and change to the new
corporate headquarters.
Other Operating Expenses
Other operating expenses increased by 35.9%, totaling R$ 261.0 million in 2012. The main
highlights are:
I.
II.
the reversal of labor and tax provisions in the third quarter of 2011, totaling R$73.2
million;
increase in PCLD (Provision of Credits and Doubtful Losses) and write-offs reflecting
higher default rates for the period; amounts offset by the reduction of R$ 16.2 million
in the line of other expenses primarily due to lower advertising expenses and
compensation for damages to consumers; the latter due to the higher volume of
reimbursements made in the due to the extratropical cyclone in 2011.
Operating expenses (R$ million)
2011
2012
Variation (%)
2012 x 2011
89.6
167.5
7.0
14.6
109.6%
-
-
NA
Others *
184.0
148.3
-19.4%
Total
192.1
261.0
95.9%
PCLD and write-offs
Provision (Reversion) for contingencies
Convictions and court settlements
86.9%
* Leases and rents, compensations, losses and damages, advertising, bank tariffs, IPTU etc
47
Other revenues and expenses
The account of other revenue and expenses increased from an expense of R$ 47.9 million
in 2011, also to an expense of R$ 914.1 million in 2012, reflecting the sale of AES Atimus in
October 2011. Excluding this effect, the increase of R$ 149.6 million in 2012 compared to
the previous year is explained mainly by the increase of R$ 92.4 million with construction
expenses due to higher Capex in the period, plus the growth in R$ 57.2 million in expenses
for decommissioning asset.
Ebitda
In 2012, the EBITDA (earnings before interest, taxes, depreciation and amortization, initials
in English) the company reached a total of R$ 655.6 million, a decrease of 77.0% compared
to the previous year, when EBITDA was R$ 2,847.9 million. The following factors explain
this performance:
(i)
negative impact of R$ 252.1 million due to the effect of the tariff review and
adjustment on Installment B, partially offset by an increase of R$ 120.9 million due to
the growth of 1.0% of the total market in 2012;
(ii)
negative impact of R$ 295.4 million in 2012 related to the increase of Installment A
costs in relation to what was found in the tariff approved on July 3, 2012;
(iii)
increase of R$ 487 million in the expenses with Installment A in the first semester of
2012 compared to the first semester, reflecting greater expense with power
purchase for resale and charges of Basic Network, ONS and ESS;
(iv)
increase of 23.5% with PMSO expenses; and
(v)
increase in the account of other revenues and expenses due to the non-recurring
effect related to the sale of AES Atimus to Tim in October 2011.
Financial results
In 2012, the financial result was a net expense of R$ 51.6 million, while in 2011 the result
was a net expense of R$ 21.3 million. This performance is explained by the following
factors:
I.
positive impact in third quarter of 2011, non-recurring item of R$ 54.3 million, as a
adjustment for inflation and interest on arrears over the Finsocial contribution;
II.
reduction in the average time of closure of the works and putting into operation of the
management system of works resulting in a decrease of R$ 21.0 million in
capitalized interest;
III.
provisions in fourth quarter of 2012, related to notices of infraction issued by ANEEL
in the amount of R$ 18.3 million related to indicators DEC and FEC 2009 and
nonconformities raised by the regulatory agency in the preparation of the valuation
report of the Regulatory Compensation Base. The company has filed an appeal
together with ANEEL to review the figures for non-compliance with Regulatory
Compensation Base.
IV.
reclassification of the fair value of the financial asset related to concession
previously recorded in equity and now recognized as adjustment for inflation, totaling
an expense of R$ 15.1 million;
V.
negative impact of R$ 6.7 million due to the decrease in CDI between periods, due
to the reduction of 3.2 pp in the CDI for the period.
And partially offset by:
48
I.
restatement on the transfer of properties sold in April 2007, totaling R$ 39.4 million.
The completion of the transfer of the remaining property of the operation allowed the
accounting of amounts related to adjustment for inflation for the period;
II.
allowance in the amount of R$ 27 million recognized in fourth quarter of 2011 related
to the notices of infraction issued by ARSESP and Aneel, positively impacting the
same period of 2012;
III.
favorable ruling with respect to the action seeking PIS credit offset, in third quarter of
2012, which resulted in the recognition of R$ 18.5 million. The company recalculated
the amounts related to the action involving PIS credit and found an additional credit.
This value only refers to the monetary update of the difference determined through
recalculation of the action
Compensation to the Shareholders
The Management of AES Eletropaulo proposes the distribution of 25% of base for payment
of dividends for the year of 2012, considering the amount of JSCP (Interest on Own Capital)
previously proposed discounted the Income Tax, totaling R $ 54.9 million. The Managers
further propose that the remaining amount of R$ 138.2 million is allocated to the Statutory
Reserve to reinforce working capital and financing of maintenance, expansion and
development of the company's activities.
Allocations will be ratified at the Annual General Meeting (AGM) which is expected to occur
by April 30, 2013, as well as the ratification of the interest on capital in the gross amount of
R $ 54.3 million deliberated at the Board Meeting and the definition to the effective date for
payment.
The amount of complementary dividends proposed by the managements of the company is
of R$ 0,5 million, and of JSCP, is of R$ 54,3 million, corresponding to R$ 0,31 per ON share
ON and R$ 0,34 per PN share.
Debt
On December 31, 2012, the company's gross debt totaled R$ 3,935.9 million, R$ 209.4
million higher at the end of 2011, reaching R$ 3,726.5 million. The 5.8% increase in gross
debt refers mainly to:
(i)
the 14th issue of debentures in November 2011, worth R$ 600 million disbursement
in January 2012;
(ii)
disbursements from FINEP during 2012, totaling R$ 19.8 million;
(iii)
partially offset by:
(iv)
amortizations of principal of the 10th issue of debentures in the amount of R $ 200
million, CCB Citibank in the amount of R $ 50 million and CCB Bradesco in the
amount of R$ 30 million and;
(v)
the reduction of the net debt recorded with Fundação CESP in R$ 96.8 million, due
to the fact that the payments to the pension fund of the installments for the year
2011 were higher than the costs from the actuarial calculation. The balance of this
debt totaled R$ 1,133.0 million at the end of December 2011.
Cash totaled R$ 814 million at the end of the year, R $ 576.4 million lower than the same
value of 2011. At the end of 2012, the company's net debt totaled R$ 3,114.8 million, 34%
higher than the balance of 4T11, due mainly to the lower balance of cash.
49
The average cost of total debt of AES Eletropaulo showed variation from CDI + 0.98% p.a.
on December 31, 2011 to CDI + 1.21% p.a. on December 31, 2012. The average debt
maturity was 6.9 years, a level slightly higher than the term of 6.6 years as of December 31,
2011.
Investments
In 2012, the volume of the company's investments totaled R$ 831.1 million, representing an
increase of 12.5% compared to the same period in 2011. Investments with own funds
totaled R$ 796.2 million, while projects financed by the customer during this period totaled
R$ 34.9 million.
In 2013, the Company plans to invest R $ 646.9 million, 22.2% lower than 2012. From this
amount, R$ 621.0 million with their own resources and R$ 25.9 million funded by customers.
Main investments – 2012
System Expansion and Customer Services
•
In 2012, it was invested R$ 195.5 million to meet the addition of 202 thousand new
customers, of which 55.4 thousand are related to regularization of illegal connections.
•
R$ 216.5 million were invested in system expansion in 2012, with focus on an increase
in installed capacity of 187MVA, as a result of the deactivation of processing 88/3.8kV of
ETD Ibirapuera (-36MVA), retraining of ETD Campestre (-27MVA), expansion of ETD
Santo Amaro (40 MVA), Cotia (40MVA), Leopoldina (45MVA), Guaianazes (5MVA) and
energizing the new ETD Ermelino Matarazzo (120MVA). Moreover, the works of Air
Channel of Station Peri 1-2, LTA Piratininga - Bandeirantes 1-2 and LTA Piratininga Bandeirantes 3-4 and RAE Sertãozinho were completed. These improvements will
benefit a population of about 1.7 million inhabitants.
50
Recovery of Losses
• We invested R$ 27.9 million for the completion of 55.4 thousand regularization of illegal
connections, correction of irregularities of 43.6 thousand irregularities and replacement of
109.2 thousand obsolete meters.
Maintenance
• The cumulative total invested in 2012 was R$ 213.0 million, mainly in the maintenance of
2005 km of the network, in addition to the installation of 1,488 automatic circuits recloses.
Others
There were allocated R$ 99.1 million for the creation of the New Administrative
Headquarters and acquisition of vehicles mainly aimed to support the contractors to carry
out works for the expansion of the network and pruning and emergency classes.
Commercial Performance
The AES Eletropaulo’s concession area has the most diverse economic activities, whether
industrial, commercial or service. Also, it has the largest population concentration in the
Country.
In 2012, the total market in the concession area of the company grew by 1% compared to
2011. This performance reflects the low economic growth of the Country, which strongly
impacted the industrial activity in the company's concession area.
Moreover, the market performance for the year was sustained by the residential and
commercial classes, due to favorable indicators of unemployment and income, and the
higher volume of sales in the State of São Paulo, which grew 9.9%. Furthermore, the
consumption of the total market in the year had a positive impact of an additional 0.8 day
billing (+103 GWh). These numbers were offset by the exit of a free customer for the basic
network and the dismissal of a customer which, together, negatively impacted with 534
GWh in the year. Excluding the impact of billing days and the exit of customers, the total
market would have registered a growth of 2% in 2012.
Power Consumption (GWh)
Type of customer
Residential
Industrial
Commercial
Public power and others
Captive market
Free Consumers
Total Market
2011
2012
Var. (%)
2011 x 2012
16,408
17,029
3.8%
5,996
5,803
-3.2%
11,614
11,815
1.7%
2,799
2,922
4.4%
36,817
37,570
2.0%
8,284
7,987
-3.6%
45,101
45,557
1.0%
51
Efficient Use of Power Resources
Commitments
Current status
Nest steps
Reduce global losses at
AES Eletropaulo in 13,35%
until 2016
In progress. Reached the goal of
2012 to reduce overall losses of AES
Eletropaulo in 2%, of 10.51% in 2011
to 10.30% in 2012.'s Actions for the
recovery of commercial losses were
intensified as the fight against fraud
and the informal connection and
management of technical losses
Intensify actions for the recovery of
commercial losses and maintain the
management of technical losses
Reduce own consumption of
electric power in 20%, through
2016.
In progress. In 2012, there was a
2.2% reduction in energy
consumption compared to 2011. It
was performed an inventory and
identification of major opportunities
for reduction. Contributed to the
reduction of energy consumption
change of four units for the new
headquarters of AES Brazil, between
July and December 2012 - building
with more efficient electrical design
Establish an Internal Management
Committee of Energy Consumption
and other natural resources, focusing
on new energy efficiency projects,
and internal awareness campaigns
Contribute to reduce the energy
consumption of our customers by
180 thousand mwh by 2016
In progress. There was a reduction
of 109.3 thousand MWh, exceeding
the 2012 target of 57 thousand MWh.
Result of the intensification of
regularization of electrical
installations of low-income
consumers and energy efficiency
projects in schools, hospitals, etc
Keep the intensification of the
"Turning Consumers into Clients"
and of projects of energy efficiency
projects for clients such as Public
Authority
With respect to the efficient use of power resources, the efforts undertaken by AES
Eletropaulo were focused on the reduction of the technical and commercial losses. In
addition to the engineering actions, including the construction of new substations and
circuits for load redistribution (for further information, see page 41), the company acted to
become more efficient in the customers’ equipment in the context of the Energy Efficiency
Program, including the regularization of irregular connections through the Transformation
from Consumers to Customers program.
Decrease of technical and commercial losses
GRI: EU6; EU7; EN6; EN7; EU12; EN26
The losses in the distribution represented the difference between the electric energy
required and the electric energy effectively sold to the customers in the same period,
classified into two types: technical and commercial (non-technical).
In 2012, the initiatives to reduce the losses increased by 537 GWh. This volume of added
energy resulted from the initiatives that comprise the loss mitigation plan. Amongst the main
actions, we refer to the following: inspection of frauds directed to the segment of high history
of irregularities and increased impact in the volume of added energy; recovery of
installations which were discontinued due to the lack of payment of the customers that
started to use irregular energy; replacement of the obsolete metrics for more modern
equipment, which allows more accurate balance and reading, contributing to reduce the
52
invoicing losses due to inaccurate reading; and regularization of informal connections (read
more on page 77).
In 2012, AES Eletropaulo performed 282 thousand inspections to avoid fraud and
irregularities, resulting in 46 thousand measurement irregularities. In addition, 67.3thousand
installations were recovered whose power supply was discontinued
Energy consumption
GRI: EN4; EN5; EN7
The electricity consumption in AES Eletropaulo in 2012 was 44.29 GWh, 2.1% lower than
the previous year. This result approximates to the commitment assumed by the AES Brasil
Group which provides for the reduction of 20% in own consumption through 2016,
considering 2011 as the base year. This way, the company exceeded the goal for the year,
established in 44,36 GWh.
The economy in the period, which totaled 1,05 GWh, corresponds to the energy demand of
a city of 41 thousand inhabitants for about a year.
Total Consumption of Energy by Source
2010
2011
2012
93
88
88*
Fossil fuel (%)
5
4
10*
Alternative sources (gas, wind power, solar energy etc.) (%)
2
8
2*
46
45.07
Hydropower (%)
Total consumption of energy (GWh)
44.29
* in virtue of the lack of information the national energy balance started to consider the proportion of the contracts of purchase of
energy of AES Eletropaulo.
53
Reduction of consumption of energy of clients and Program of
Energetic Efficiency
GRI: EU6; EU7; EN6; EN7; EN26
In addition to the Transformation from Consumers to Customers project (see page 77), AES
Eletropaulo invests in energy efficiency projects to the customers of the industrial, public
power and service groups.
Throughout 2012, AES Eletropaulo invested R$ 46.84 million in energy efficiency projects,
in cities of concession area, such as São Paulo, Diadema, Pirapora de Bom Jesus,
Carapicuíba, among others.
The plans benefited state and municipal schools, hospitals, traffic lights and tunnels of the
São Paulo state capital besides public buildings, among others, totaling in the 520 units a
reduction of 38,846 MWh/year of energy consumption, which is equivalent to the average
monthly consumption of more than 14.1 thousand households.
One of the initiatives that can be perceived by the São Paulo citizens daily is replacing
incandescent light bulbs with LED lights in about 110 thousand traffic lights of the city.
Besides saving about 80% of the electricity, requiring less maintenance, this kind of lighting
is safest because it ensures that drivers and pedestrians have no doubts about the color of
light, regardless of the reflection of sunlight. In 2013, a refinement of the project includes the
installation of no breaks that keep the traffic lights system running even during a potential
power outage at 176 intersections, corridors and critical city.
In August 2012, Eletropaulo ended, together with the Municipality of São Paulo, the works to
replace the lighting system of more than seven tunnels totaling 20 in the city. AES
Eletropaulo project’s benefits go beyond improvements in lighting: the action also reduced
thefts of cables, saving energy and maintenance costs, but also in the care of the electrical
system.
In addition, another 195 schools in the municipal city of São Paulo and another 73 of the
state have benefited from the modernization of the lighting system, which also brings
greater economy and quality for students, especially for those studying at night.
In health, R$ 1.5 million was invested in the improvement of lighting and HVAC systems of
12 public hospitals, benefiting patients and physicians.
GRI EN6
Saved energy (MWh)
Investment
(R$ million)
Efficient Energy Program
38.846
46,84
Program of Transformation of Consumers into Clients
77.839
58,77
Total
116.685
105,61
Reduction of energy consumption of clients
54
Main Projects Developed in 2012
Education
Project: 73 State schools and 195 of the Municipality of São Paulo
Customer: Education Secretariat and Municipal Education Secretariat
Total amount invested in the projects: R$ 9.1 million
Scope of the project: modernization of the lighting system
Estimated energy savings: 8,030 MWh / year
Public buildings
Project: municipal governments, governmental departments and governmental agencies
Customer: Taboão da Serra, Pirapora do Bom Jesus, Sub Municipality of São Paulo,
Diadema, and Carapicuíba
Scope of the project: modernization of the lighting system of 219public buildings, including
schools, Basic Health Unit (UBS), hospitals, Municipal Market of São Paulo and
administrative buildings
Estimated energy savings: 4,082MWh/ year
Public lighting (tunnels)
Project: 7 tunnels in the city of São Paulo especially Anhangabaú, Roosevelt and Court of
Appeals
Customer: Municipality of São Paulo
Scope of the project: modernization of the lighting system of the tunnels with LED
technology
Health
Project: several hospitals
Clients: 10 State Hospitals, IAMSPE and the Hospital of Military Police
Scope of the project: modernization of the system of air conditioning, and lighting
Street lighting
Project: Street lighting of the City of São Paulo
Clients: CET/PMSP
Scope of the project: replacement of over 110 thousand incandescent lamps by led lamps.
Estimated energy savings: 25,781 MWh/year
55
Efficient Use of Natural Resources
Commitments
Status
Next Steps
Expand by 40% waste
recycling and cut by 25%
waste disposal in landfills by
2016
In progress. Exceeded the goals of 2012 for
recycling of waste, as well as for the disposal to
landfill of waste generated by the company. It
was registered 49% of recycling and reuse of
waste generated in 2012, a rate above the 15%
target projects to the year was recorded. It was
also registered the reduction of waste sent to
landfill, 55% of total generation in 2011 to 45%
of total generation in 2012, an index above the
target of 53% projected for the period.
Additionally, there was a reduction of 73.2% of
the total waste generated by the company.
These results were obtained from the
prioritization of major waste volumes and
greater environmental impact and
appropriateness of the allocation process.
Enhance and monitor
processes, raising awareness of
people involved, to ensure the
efficient management of
generated waste and its proper
disposal
Give priority to the partners
receiving the waste taking into
consideration the social and
environmental aspects of the
plant for treatment/disposal of
the waste until 2016
In progress. In 2012, were mapped and
prioritized the suppliers recipients of waste,
environmental criteria were defined and
mapped the current processes to manage those
suppliers to identify potential improvements
Review the procedure for hiring
and management of waste
suppliers and recipients and
implement new process
including phases of training,
adaptation and development of
these suppliers
Reduce in 10% the water
consumption, in 10% the co2
emissions and in 5% the
paper consumption and
prioritize the use of renewable
fuel in the fleet up to 2016
In progress. It was not achieved the goal of the
year for the 2% reduction in water consumption,
which increased by 7.6% compared to the
consumption of 2011 , mainly due to works in
the buildings (old and new) that served as
headquarters to AES Brazil.
Although the goal of reducing the energy
consumption has been achieved, the goal of
reducing emissions of CO2 was not achieved in
consequence of the increase of the emission
factor of the national electric grid and the impact
of high energy consumption in company
inventory.
Establish an Internal
Management Committee of the
Consumption of Natural
Resources, with a focus on new
projects and beyond internal
awareness campaigns.
To sustain efforts to reduce its
own consumption of electricity,
as well as losses in the system.
It was reached the target of 2% reduction in
paper consumption compared to 2011
Merge at least 20% of
recycled and reused material
and/or equipment in the power
grid up to 2016
In progress. It was performed an inventory and
equipment with greater potential for reuse were
prioritized. The pilot project was implemented
that would measure the viability and return
(financial and environmental) of this recycling
process.
Measure the results of the pilot
project, make possible
adjustments and assess the
possibility of extending the
scope of the project, including
new materials
Structure, up to 2013, the risk
management and
opportunities identification
system associated with
weather changes
In progress. The action plan was completed in
2012 with the involvement of the internal public
for mapping risks and opportunities associated
with Climate Change
Define guidelines for the
performance of AES as to
Climate Change and establish a
Management Model
56
GRI: EN14, EN26, EN28, EN30
AES Eletropaulo is supported by the Environmental Management System (SGA), whose
main purposes are the prevention, correction, mitigation and control of the environmental
effects. SGA offers the system of continuous improvement through the development of
management purposes, goals, programs and procedures, and operating instructions,
aligning, therefore, the company’s processes and activities, specifically with respect to those
that represent the most significant risks to the environment.
The system also refers to themes that involve management of services and material
suppliers, taking into account issues related to the compliance with the environmental laws,
good environmental management practices and regulations and the company’s policies, in
addition to prevention of impacts. Another point of attention of SGA is the impacts that the
AES Eletropaulo’s activities would cause against the communities in the surroundings, in
order to identify ways to minimize them. All these actions are directed by the Sustainability
Policy of the AES Brasil Group, which operates in accordance with the prevailing
environmental laws and regulations and with respect to the natural resources.
In 2012, the certification ISO 14001:2004 scope reached 100% of the company’s processes
and units, covering all AES Eletropaulo’s operations in the 24 cities of the concession area.
Environmental protection expenses (R$ thousand)
2010
2011
2012
3,409
3,225
3,068
147
1,676
1,463
Environmental Offsets and Licensing
1,217
810
1.313
Recovery of the Quality of the Soil and Underground water
3,558
6,616
11,256
Prevention to Pollution (Construction of Oil collecting basins ETDs)
Other environmental management costs (personnel)
2,175
2,677
2,078
314
138
1
ND
ND
2,237
R&D Projects
2,916
2,176
655
Energy Efficiency Projects
62,871 54,978 35,008
Direct Costs - Environment Management
SGA - Environmental Management System and others
Other costs of environmental management
TOTAL
76,607 72,297 57,080
Environmental sanctions
2010
2011
2012
26
21
18*
* Monetary value of significant fines: R $ 229,968.21 (does not consider the penalties with ongoing resource).
57
Waste and material
GRI: EN1; EN22
The development of the activities in AES Eletropaulo depends on the resources such as
cables, poles, metallic material, isolators and transformers, amongst other items. Currently,
these materials are managed based on the specifications of purchase, without the control of
volume or mass. In 2012, it was started the alignment work, so the information may be
reported in 2013.
Based on the commitment to use at least 20% of recycling and/or reused materials and
equipment in the electric energy grid through 2016, AES Eletropaulo started, in 2012, a
project to evaluate the potential use of the reverse logistics in all operation.
We prioritized three types of material with a greater reuse potention, poles, ironware and
insulators, which received a differentiated treatment from the removal of the grid to the final
treatment for reuse. It was implemented the pilot project and it is estimated a cost reduction
of approximately R$ 3.8 million/year.
In addition to the purchase and efficient use of the material, the proper management of the
waste generated is a commitment assumed by AES Eletropaulo. In 2012, the company
increased by 32.64% the recycling and reuse activities, as well as reduced by 78.68% the
generation of waste for landfill in relation to 2011.
GRI EN22; 3.11
Residues
Non Hazardous Residues (t)
Reuse
2010
2011
2012¹
391
439
321
Recycling
9,708
13,168
21,029
Recovery
0
0
0
Incineration (or use as fuel)
92,501
53,211
142²
Sanitary landfill
74,145
79,974
17,046
176,745
146,792
38,538
Total
¹For wastes that are not heavy it is applied factors of volume of conversion for weight, estimated by the
company, as well as data provided by the contractors responsible for waste disposal of the residues.
²A wide variation in the category "Incineration (or use as biomass fuel)" occurs by changing the method of
calculation and volume of conversion factor for weight of the residue of pruning. In addition, part of this amount
started to be recycled.
³A variation in the category of landfill due to the seasonality of the generation of construction waste while reducing
hazardous waste happens for the decommissioning project of the site of Cambuci.
58
GRI EN22
Hazardous Waste (t)
2010
Recycling
Recovery (including energy recovery)
2011
100
1.074
639
1.332
1.516
611
67
18
33
1.974
4.079
1.177
209
559
329
0
0
102
Incineration (mass burning)
Sanitary landfill
Co-processing
Decontamination PCB
Total
2012
3.682
7.246
2.891
2010
2011
2012
Transported
3,682
6,054
2,242
Received treatment
3,682
6,054
2,242
4 The weight of oil for reduction is estimated base on the intensity of the gross oil.
GRI EN24
Transported hazardous waste(t)
Water
GRI: EN8; EN9; EN21
In 2012 the consumption of water in the AES Eletropaulo units was 1246,379 m³, a volume
7.6% higher than the goal for the period. This amount is equivalent to 21.52m³/employee,
2.6% higher than the previous year.
In order to comply with the commitment of reduction in water consumption, an inventory of
all sites of the company was made. An internal management commission was created
analysis of the treatment and establishments of action plans focused on the reduction in
consumption.
Total consumption of water per source (m³)
2010
2011
2012
127,621
115,913
126,379
Underground source (pit)
ND
1,591
-
Superficial collection (water courses)
NA
NA
-
127,621
117,504
126,379
22.53
20.98
21,52
Supply (public network)
Total Consumption of water (m³)
Water consumption by employee (m³)
Water discharge per quality and disposal
Discharges
Quantity(m³) Treatment
Oily water from
974
Underwater
Transforming
Effluents
fromChambers
2.877
Underwater
Transforming Chambers
Physical-chemical
treatment
Biological
Treatment
Quality Disposal
NA
NA
Hired
Company
Hired
Company
Was it reused by another
organization?
No
No
59
Emissions of Greenhouse Gases (GEE)and Substances Depleting
the Ozone Layer (SDOs)
GRI: EN3; EN4; EN16; EN17; EN18; EN19; EN29
In 2012, AES Brasil commenced the implementation of a Risk Management and
Opportunities Identification System associated with the Climate Changes, which is a
commitment of the Sustainability Platform and whose purpose is to evaluate the company’s
weaknesses for the proposal of prior measures for climate adjustments, amongst other
purposes.
In addition, the inventory of emission of greenhouse gas (GEE) was improved, which started
to considered additional sources compared to the previous year. We included emissions
related to the recharge of fire extinguishers and solid waste.
Taking into consideration the emissions directly controlled by AES Eletropaulo, it was
totaled 8,106.49 tCO2e, mainly corresponding to the consumption of fuel in the fleet and
emission of SF6.
The indirect emissions corresponding to the energy consumption for the performance of the
organization activities totaled the equivalent to 350,692.24 tCO2, taking into consideration
the average monthly emission of 0.0686 tCO2/MWh of the Brazilian Integrated System
(SIN). It is also emphasized there was an increase of 135% in the SIN’s average emission
factor, and, if the assumptions of the previous year are maintained, the value would be
151,355.25 tCO2.
The increase with respect to the previous year resulted from the change in the water
system, caused by a long lasting draught, and the subsequent increase in the use of the
thermoelectric plants to meet the Brazilian energy supply.
GRI EN16
Direct emissions of Greenhouse Gases per source
(equivalent tCO2)
Direct emissions
2010
2011
2012
7,367.49
8,106,49
7,367.49
5.84
11.33
5.84
Mobile combustion
4,235.35
6,253.63
4,235.35
Fugitive emissions
1,350.80
967.38
1,350.80
Solid Waste
1,775;49
874.15
1,775.49
Indirect emissions related to energy purchase
154,851;47
350,692;24
154,851.47
Total Emissions
162,218;96
358,798;73
162,218;96
Stationary combustion
GRI EN19
Emissions of substances destroying the Ozone layer
Type
of gas
Consumption (t)
ODP (Ozone Depletion Potential)
CFC11 (t equivalent)
2012
0,0749
0,004
0,004
60
Control of impacts to biodiversity
GRI EN11; EN12
The works for the analysis of impacts to biodiversity occur in the licensing phase of
undertakings. In this phase, less aggressive project alternatives are identified and in the
event of technical-financial unfeasibility of implementation, offsets are made.
Parque Estadual da Serra do Mar
Location: State of São Paulo (several municipalities)
Position regarding the area: within the area
Operation: subtransmission electrical system
Operating unit size: 2.07 km2
Biodiversity value: covered area of remaining portions of Atlantic Forest - Conservation Unit
Parque do Pedroso
Location: Santo André - SP
Biodiversity value: covered area of remaining portions of Atlantic forest - Conservation Unit
APA Capivari Monos e APA Bororé
Location: São Paulo - SP
Operation: Subtransmission electrical system
Biodiversity value: covered area of remaining portions of Atlantic forest APA - Environmental
Preservation Area (Municipal)
APA do Carmo
Biodiversity value: covered area of remaining portions of Atlantic forest APA - Environmental
Preservation Area (State)
Parque Ecológico do Tietê
Biodiversity value: covered area of remaining portions of Atlantic forest - Conservation Unit
Substations and Lines in spring areas
Location: municipalities within our concession area
Operation: subtransmission lines and substations
Operating unit size: 2,73 km2
Biodiversity value: APRM (area of preservation and recovery of springs)
61
GRI EN13
Pomar Urbano
Performed in a joint partnership with the Government of the State of São Paulo, the
program Pomar Urbano (Urban Orchard) aims at promoting the environmental and
landscape recovery of the margins of Pinheiros River, in São Paulo. The project occurs over
part of one of the subtransmission lines of AES Eletropaulo, at the margins of the river, and
over the last three years, the company was in charge for the maintenance of two sections,
corresponding to 37.3 hectares. Other companies performed the maintenance of other
sections.
62
Development and valuation of
employees, suppliers and communities
To know, get involved with transparency and positively affect our target audiences for the
constructions of a collective agenda to generate value to all parties.
AES Eletropaulo is engaged to offer a favorable professional work environment to its
employees, and development and recognition to its suppliers, as well as the definition of
actions focused on the communities where we operate.
Development and valuation of employees
Commitments
Status
Reach an index above 85% of satisfaction In progress. In 2012, the goal of 80%
was not reached in AES Eletropaulo,
in AES Brasil work environment until 2016. staying in 74%
Next steps
Evaluate possible improvements to
existing initiatives focused on the
development and recognition of
employees and management, improving
programs and strengthening the internal
communication processes
In order to comply with its strategic and business commitments, as well as seeking for the
creation of value for all its target audiences, AES Eletropaulo is specifically focused on its
employees. A company seeks, on a daily basis, to create systems to stimulate and
appreciate the employees, focusing on the efficiency, professional satisfaction and quality of
life.
In 2012, an important project was concluded: the transition to the new head office. At the
end of 2010, we started the preparation of this change, which was supported by a number of
discussions between all hierarchical levels, research about the employees’ opinion and
feasibility studies.
In January 2012, the group Embaixadores da Mudança (Ambassadors for Change), which
gathered 60 employees representing all areas to discuss and create solutions for all issues
related to the transition to the new head office. The Ambassadors for Change continued to
meet even after the completion of the transition, in order to evaluate the suitability of the
employees to new working strategy of the company and identify possible areas for
improvement.
The change into the new head office involved the allocation of 1,500 employees - who were
previously in different offices in the City of São Paulo - in one single building in the city of
Barueri (SP).
The main purpose of the change was to increase the integration, synergy, agility, efficiency
and competition capacity of the company, in an innovative environment that would be able
to promote the welfare of the employees, in addition to reduce the company’s costs.
Therefore, the new head office provides for a more modern physical space that improves
the integration between the employees, also improving the work. It has also an
infrastructure to support the needs of the employees, as a site for meal and the Off Space,
which provides for entertainment activities.
63
New working strategy
The changes are not solely related to the location and infrastructure. AES Brasil believes in
an innovative method of work. The transition to the new head office also changed the work
culture. The effects for the employees started with the work time, which commences at 7
a.m. and ends at 4:00 p.m., defined with the purpose of reducing the time in the traffic of the
Metropolitan Region of São Paulo in the rush hours. In accordance with the estimates, the
change in the initial work time – which previously was at 9:00 a.m. – resulted a gain of
approximately 58 minutes in the displacement of the employees.
The new work time allows the employee to return to his/her place earlier than he/she was
used to, increasing the free time for personal activities and, therefore, improving the quality
of life.
The new working strategy of AES Brasil also resulted in changes in the daily activities. The
planning and organization of the work time are further emphasized and disclosed by the
company. The purpose is to increase the productivity without increasing the working time.
Therefore, before the change to the new head office, 100% of the employees were trained
about the new way to work and acts related to it.
It also implemented the remote work. The employees that do not record the working hours
can negotiate with the respective leaders and perform the work remotely once a week. The
purpose of this initiative is to provide the employees with more flexibility to perform their
personal and professional activities, contributing, therefore, to their satisfaction and quality
of life.
Displacement of the employees
One of the most important and most discussed issues in the management process for
change was the issue of displacement of the employees to the new work site. The
Ambassadors for Change held discussions to reach a transportation model that meets, in
the best possible way, the needs of the 1,500 employees allocated in the new head office.
The company provides a freight transport that serves about 840 employees. There are 24
routes covering the entire metropolitan region of São Paulo and allow employees to arrive
and leave the work site within the stipulated time.
Satisfaction in work environment
In order to evaluate the employees’ opinion on the infrastructure, quality of life, integration
between the areas and remote work at the new head office of AES Brasil, an Evaluation
Research was performed and received over 600 responses. In accordance with such
research, 87% of the employees are satisfied with the new work environment and the quality
of the facilities. For 40% of the employees, the quality of life was improved with the change,
and 54% believes that the new working strategy facilitates the daily activities. Also
according to the evaluation, the remote work affected positively the life of 73% of the
employees, and 70% of the employees declared that the integration with the other areas
made the work more accurate and productive.
These results confirmed that the new working strategy is already consolidated amongst the
employees and that contributed to improve the work environment and daily productivity.
In 2012, 74% of the employees of AES Eletropaulo provided a positive evaluation of the
new workspace. Although the goal was not reached (85%), we consider that many factors
adversely affected the results, mainly the restructuring of the company when the research
was performed.
64
Restructuring
In the second half of 2012, AES Eletropaulo went through a period of restructuring in its
employees’ staff. This adjustment was necessary due to the effects of the tariff review and
led to the resizing of positions and teams. Thus, it was necessary to conduct a review of the
impacts to all target audiences and it was decided to make major adjustments.
It was promoted adaptations that implied a change of functions and compensation equating
thus reducing 68 positions in administrative and operational base, increasing by 470
vacancies the number of electricians who work customer service, and encouraging 70
people to retire within the Retirement Incentive Program. Adding to the dismissals in the
period, there was a net increase of 204 vacancies in the company.
Development and appreciation
GRI LA12
The integration and development of the AES Brasil’s employees are continuous. The
employee’s transparency in the professional performance is analyzed, amongst other
periods, during the Performance Evaluation with Feedback 360º, which involves leaderships
and the employees in the analysis of the performance of subordinated employees, peers
and managers. Such transparency is implemented during the Pé na Estrada, a direct
discussion between senior management and the employees, which provides the results
from previous year, company’s strategy, investment plan and goals for the year, in addition
to respond to the questions performed by the employees in the microphone. In addition, the
employees attend to the discussions in the tables to present the improvement proposals that
may be used in the Group’s environmental strategic plan. In 2012, 18 meetings were held,
attended by 192 participants of all companies. In order to stimulate and compensate the
employees that stand out in the development of their daily activities, the Company adopted
the Recognition Program.
Recognition of employees
To encourage and prize the employees that stand out in the development of daily duties,
since 2009 AES Brasil keeps the Recognition Program: dynamic, management and values
of AES. In AES Eletropaulo, in 2012, 326 persons benefited, including 235 dynamic
recognition to employees or staffs whose actions had positive impact on the company taking
into consideration the responsibilities of the position.
Siga Livre: the path for expansion at AES Brasil
GRI LA11
The professionals of the AES Brasil Group also have the opportunity to define their career
plans and to establish the goals for their professional expansion through Siga Livre, a
program that provides information on the hierarchical levels and knowledge, formation and
experience necessary to be in charge of each position.
The Siga Livre content was reviewed and updated at the end of 2012, with 764 promotions
and 1,300 salary increases due to merits or change in position, in connection with the
program in AES Eletropaulo.
65
Internal recruiting
The development and retention of talents are essential for the good performance of the
businesses. Therefore, AES Brasil prioritizes the internal recruiting with respect to the new
opportunities.
In 2012, 40% of the vacations were occupied by employees already working in the company
in other positions. The main objective of the program is the improvement of the succession
plan, as well as to encourage the employees to prepare their career plan, so that in the
future these employees are able to be in charge of new positions in the organization.
So that the positions may be available to all in a democratic manner, the company uses the
internal communication tools, such as intranet, board and bulletins, to do the disclosure.
When AES is not able to fill internally out all spaces, an external selection process is
opened, coordinated by human resources area, with active participation of the requesting
area manager.
Profile of the employees
GRI LA1
General information
Total number of employees
Employees with age up to 30 years old (%)
Employees with age between 31 and 40 years old (%)
Employees with age between 41 and 50 years old (%)
Employees with age over 50 years old (%)
Number of women in relation to total of employees (%)
Women in management position in relation to total of management positions (%)
Black employees women (black and mixed race) in relation to total of employees (%)
Black employees (black and mixed race) in relation to total of employees (%)
Black employees (black and mixed race) in management position in relation to total of
management position (%)
Trainees in relation to total of employees (%)
Employees annual program for contracting of apprentices (%)
Disabled Employees
2010
5,663
30.73
40.14
23.29
5.84
19.83
24.18
2.15
17.55
2011
5,668
28.32
40.81
24.26
6.61
19.64
25.98
2.01
17.33
2012
5,872
31.79
40.38
22.10
5.71
17.61
25.00
2.04
18.95
1.10
1.57
2.38
1.2
0.62
62
0.3
2.38
71
0.9
0.6
61
GRI LA13
66
Professional Development
School level profile – describe in relation to the total of employees
Basic education
High school education
Higher education
Post graduation (specialization, Master’s degree or Ph)
Illiteracy among work force
Amount invested in Professional Development and education in relation to the
payroll
2010
%
11,50
59,53
24,64
4,33
0,00
1,09
2011
%
10,11
60,20
24,77
4,92
0,00
1,60
2012
%
7,99
65,32
21,74
4,94
0,00
1,61
67
Turnover
GRI: LA2
In 2012, there were 1,071 hiring compared to 864 dismissals, 180 were women and 684
men. In the period, the voluntary turnover rate5 was 10.43%. The target established by all
AES Brasil Group’s companies is up to 6% and the result observed is the reflex of the
structure of the company.
Compensation and benefits
GRI: EC3; EC5, LA3, LA14
AES Eletropaulo is concerned about to remain attracting and competitive in the market and
adopts a compensation policy that includes a number of benefits to its employees.
The company’s salary policy includes nominal salary (fixed compensation), additional
compensations and benefits, in addition to the Profit Sharing Program (PLR). The fixed
compensation is tied to the position and job duties, according to the level of responsibility.
On the other hand, the variable compensation is based on the individual performance
evaluation and on company’s result and it is paid through the Profit Sharing Program.
The lowest compensation in base salary paid by the company corresponds to 1.69 times the
2012 current minimum salary. With respect to the equity in the compensation of operational
positions, for example, men had a salary 4% higher than the women compensation. In
2011, this difference was 29%.
The Company also offers to all employees the private pension plan, such as Fundação
Cesp, Previdência Itaú-Unibanco and MetLife. These are three different options – defined,
supplementary and voluntary – and the contributions are defined in accordance with the
characteristics of each plan, with disbursements performed by the employees and by the
company.
Benefits
Meal ticket
Transportation ticket
Life insurance
Health plan
Coverage for disqualification/invalidity
Mother and father leave
Pension plan
Note. the benefits are not entitled to the employees working during a half period
5
(GRI 3.9) The rate of voluntary turnover only considers dismissals requested by employees, not considering dismissals,
and reflects the organization's ability to retain talent. Calculation formula: ((disconnected voluntarily + accepted) / 2) total
employees
68
GRI LA14
% of employees by salary range
Until 5 minimum wages
From 6 to 10 minimum wages
From 11 to 15 minimum wages
Above 15 minimum wages
Average salary by category (R$)
Board of director positions
Management positions
Administrative positions
Production positions
Men/ women salary
Board of Directors
Executive Board
Management
Administrative
Operational
Apprentices
Trainees
Interns
Compensation profile
2010
64,75
23,91
6,06
5,28
Compensation profile
2010
28,866.74
14,350.86
3,950.97
1,640.58
2011
59,56
26,59
8,01
5,84
2012
62,77
25,90
8,69
6,02
2011
28,685.85
14,787.84
4,159.86
1,786.97
2012
33,192.54
16,186.58
4,365.91
1,776.34
2012
83%
111%
66%
96%
100%
100%
96%
Quality of Life
GRI: LA8
The quality of life in the work environment is one of the main concerns of AES Brasil.
Therefore, AES Sul invests in programs and actions to identify hazard and risk factors
related to occupational health.
Through the Occupational Health and Safety Management System (SGSSO), based on the
OHSAS 18.001 and on the Behavior Based on Safety (BBS), the company adopts control
measures aiming to insure people’s health, safety and ergonomics.
One of the initiatives is the program Viva Bem Viva Mais, divided in three stages, whose
purpose is to reduce the stress and promote the quality of life, contributing to the
professional and personal development of the employees: Viva o Corpo – focused on the
care with health of the employees; Viva a Mente – focused in reducing the stress and lack of
physical exercises; Viva Mais – promote campaigns for promotion of physical and mental
welfare.
Another action that aims to further improve the AES Sul employee and assist him in times of
difficulty, contributing to a more peaceful, secure and balanced professional and personal
life, is the Count on with Us Program. This program values the confidentiality and has a
team of social workers who attend in person or via 0800, offering comprehensive social
support in different situations and procedures, such as direct care to employees and
dependents seeking help from social context; home and hospital visits to remote
employees: 24h care in case of accidents; information and support to employees removed
by Social Security (INSS); among others. The Personal Support Program is another service
channel that aims to restore emotional well-being of the employee. Through it, employees
and their families can seek psychological, legal, financial aid, speech therapist, among
others. Services are offered by professionals, by phone or in person.
69
Communication with internal public
AES Brasil seeks for the continuous discussion with its employees and maintains a number
of communication channels through which the employees are able to issue their opinion,
resolve doubts and know better the company. We refer to the Rede Ligado, comprised of
five channels integrated with Communication.
suppliers
Commitments
Status
Next steps
Implement the contracted companies’
development and improvement
management program until 2014.
In progress. New social,
From new criteria, assess gaps and
environmental, safety and operational
develop Program of Development of
criteria for hiring and evaluating
Suppliers
suppliers were refined
Have 100% of service suppliers
qualified in sustainability, encouraging
them to adopt sustainable practices
and seek certification of its products
and services until 2016.
In progress. New social,
From the new criteria, draw model of
environmental, safety and operational
the program of Education for
criteria for hiring and evaluating
Sustainability for selected suppliers
suppliers were refined
Implement the furtherance program for Not started. This commitment was
small and new suppliers until 2014.
planned for 2013.
Draw the Support Program for Small
and New Suppliers
Implement a contracting model of
suppliers at total cost until 2012.
Reached. The model of hiring of
suppliers based on the methodology of
Strategic Sourcing which includes the
Implement new criteria for pilot
assessment of the total cost was
suppliers to verify the opportunities and
defined, in addition to refining the
areas for improvement regarding the
criteria for hiring and evaluation of
total cost
suppliers that will also compose the
total cost. Once fulfilled, this
commitment ceases to exist in 2013
Adopt prioritization of suppliers of
materials and services that have
environmental practices process by
2016
In progress. Studies and activities
were performed to define
environmental criteria that will be
inserted in the hiring model and
supplier management
Draw and implement a pilot project that
considers the social and environmental
criteria already defined and select
group of suppliers to test the model,
including actions of development and
recognition
In order to comply with the commitment to establish a clear and transparent relationship with
its suppliers, AES Brasil Group created, in 2011, a performance evaluation system of this
target audience considered critical, which directly affects the company’s business, including
agreements with an effective period of at least six months and of high value. Therefore, all
most significant suppliers to AES Brasil are considered by the tool. The entire process is
based on the procedures of the Certification ISO 9001.
The Suppliers Performance Index (IDF) counts on the participation of the managers of the
areas of all companies comprising the Group, which are responsible for completing, on a
monthly basis, the questionnaire including aspects related to the safety, environment, social
responsibility, quality, management, productivity, relationship and contractual clauses.
In 2012, IDF improved significantly its scope, which also improved the tool. When it was
created, the IDF had four questionnaires to evaluate approximately 40 suppliers. Currently,
there are 12 questionnaires that evaluate approximately 200 suppliers and over 300
agreements, once some of them are responsible for more than one agreement.
70
The flexibility of the tool enables the creation of specific questionnaires for each category of
services and materials, converging the weights of evaluation criteria and their questions to
the characteristics of each object. In 2012, for example, specific assessment models were
developed to companies of power generation suppliers, which allowed the inclusion in the
evaluation of suppliers who provide services and provide materials and equipment for AES
Tietê and AES Uruguaiana.
The evaluation cycle of the IDF is on a monthly basis in accordance with the effective period
of the agreement, being the detailed results shared with suppliers after each evaluation. In
accordance with the note provided, the tool classifies the suppliers into four performance
rates: excellent; in compliance with the standards; needs improvements; not in compliance
with the standards. When the classification is at the last two rates, the tool determines that
the manager prepares an action plan in order to allow the supplier to reach the minimum
standards. The effectiveness of the action plan is evaluated as from the improvement in the
note obtained in the months subsequently to the commencement of the action plan.
The significant development in 2012 was the participation and commitment of the managers
that developed action plans also to the suppliers that complied with the minimum standards,
contributing, therefore, effectively and on a proactive basis with the development of this
target. In 2012, it was implemented 711 plans, as compared to 177 in 2011.
In addition, to improve the transparency of the process, the Group is developing a
satisfaction survey with all its critical suppliers. Initially scheduled for 2012, the research was
scheduled for the second six-month period of 2013.
IDF Improvements
In 2012, AES Brasil began a process of improvement of evaluation of the suppliers. The
criteria evaluation is being revised in order to supplement the evaluation on the social and
environmental evaluation of our business partners. We improved the analysis taking into
consideration the aspects related to the labor rights, of environment, health and safety,
improving the process in relation to the new challenges for purposes of sustainability of the
businesses.
This revision was performed in two stages, which analyzed, individually, the perception of
the leadership of AES Brasil and the suppliers, through dialogue panels, on the new
evaluation criteria.
In 2013 the work will be focused on the revision of the evaluation questionnaires in the IDF,
taking into consideration both positions. The results from this evaluation will be converted
into action plans to improve the social and environmental performance of the suppliers,
considered in the Best Supplier Award, annually performed by the company.
Incentive and Recognition
With the improvement of the IDF, we also increased the recognition of the suppliers that
obtained the best performance in the evaluations. Since 2011, AES Brasil promotes the
AES Brasil Best Suppliers Award. With the slogan, “Large partnerships deserve large
recognition”, the award is based on the IDF and recognizes the best practices of the
partners, taking into consideration the safety, environment, social responsibility, quality,
management, productivity, relationship and contractual clauses.
Amongst the 205 suppliers (responsible for 323 service agreements and supply
agreements), 118 were qualified to the award process, 34 as the final candidates and seven
were the winners in the following categories: IT Services; Electric System Services (SEP);
SAC Services; Infrastructure and Support Services; Generation Projects and Inventory
71
Material. There was also the delivery of the Highlight in Sustainability to two suppliers who
hold shares in favor of the environment and / or the company. See the winners at
www.aesbrasil.com.br/fornecedores.
Suppliers Profile
GRI EC6
In 2012, AES Eletropaulo held commercial relationship with 2.100 companies, of small,
medium and large sizes, national and multinational to supply materials, equipment and
services to meet the technical, operational and administrative needs of the plants.
Over 60% of the employees engaged are comprised of suppliers and regional service
providers. 10,251 professionals operate in AES Brasil through service providers in 2012.
Employment policy
GRI EC6
AES Brasil adopts specific rules to select its suppliers, including at the beginning of the file
information on the basic guidelines in terms of safety, environment and Value Guide. In this
stage, the company requires documentation for legal and tax qualification and consultations
are performed regarding the company’s financial health and the compliance with the social
and environmental legislation.
The compliance with the requirements on the part of the suppliers is guaranteed by means
of periodical and receipt inspections, industrial evaluation, ethics and compliance
questionnaire, evaluation of the social and environmental responsibility and technical and
work safety audits performed by AES Brasil and specialized companies.
For more complex proceedings, AES Uruguaiana may require specific environmental
licenses, evidences of compliance with the conditions and requirements of occupational
safety and trainings regarding the regulatory rules nr-10 and nr-33 and evaluation of
prototypes.
In the contracting processes, AES Brasil identifies the needs and expectations of the
suppliers, which are subsequently analyzed and used for the improvement of the practices
related to the relationship. Accordingly, it seeks the means to adjust the company’s
expectation for the performance of the suppliers on a sustainable manner.
During the effectiveness of the agreements, events, meetings and workshops are carried
out to ensure the continuity of supply without harming the parties. The main subjects
addressed are ethics, safety and performance. In AES Eletropaulo, the percentage of
purchases performed with the local suppliers6 is 75.37%.
Contractual compliance review
GRI: HR2; HR10
In order to improve the ethical level in the business relations and avoid corruption, the
Ethics and Compliance area of the AES Brasil Group evaluates the reputation of the
potential business partners, ensuring the ethical behavior of its business and reducing
eventual risks against the company’s reputation. Therefore, before completing a transaction,
6
Local suppliers mean those located in the State of São Paulo.
72
the Ethics and Compliance Program provides for a number of analysis and research of
compliance, denominated due diligence7 of the partners involved.
In addition, the Compliance Agreement is attached to the agreement, which provides for the
measures to be adopted by the partner in relation to the commitment of not performing
unlawful acts, in addition to provide for the termination of the agreement with respect to the
non-compliance with the terms of such appendix. In 2012, 100% of the suppliers qualified8
in the compliance process were evaluated with respect to these aspects, including the
health and security conditions.
In 2012, 2 thousand operations were evaluated in AES Brasil, of which 1,000 relates to AES
Eletropaulo operations.
In the year, the total of 106 suppliers, with agreements that include the verification clauses
focused on the human right matters, were also submitted with respect to such matters. The
agreements entered into with the suppliers evaluated were all accepted.
7
A due diligence is a . set of investigative acts to be performed before a business operation is achieved.
8
It is included in the compliance process suppliers with contracts exceeding US$ 100 thousand, or having any interaction
with any government authority.
73
communities
Commitment
Current Status
Next steps
Reached. Defined in the Management
System of Corporate Social
To define policy, strategy and sources Responsibility and Private Social
Improve measuring indicators
for private social investment, seeking Investment Policy, enhancing the
processes and outcomes of private
to narrow the focus to the AES Brasil environmental performance of the
social investment
group’s core business by 2013.
Group with projects more connected to
the core business. Once reached, the
commitment ceases to exist in 2013
Reached. Besides cost reduction from
2013, was released Scenic Cia Scenic
Aruanã, a group that is part of the
Perform at least two performances
Define own mechanism for revenue
House of Culture and Citizenship and
that generate income for the House
generation of Culture and Citizenship aims to generate income through the
of Culture and Citizenship and have
House up to 2013.
shows performed. A process of
at least two more sponsors in 2013
attracting new sponsors was also
implemented. Once fulfilled, this
commitment ceases to exist from 2013
In progress. Mapping process and
Participate from preparation e
Define the institutions that will
implementation of three public
support or partnership of the AES
receive support from AES in 2013
policies aimed at sustainability up to
institutions that promote discussions on
and which issues will be prioritized
2016.
public policy
Not started. This commitment was
To identify and recognize society’s
Define criteria and model for the
best sustainability, by 2014.
planned for 2013.
recognition of best practices
In progress. With the intensification of
To expand the access to regularized
the project Transformation of
Keep the intensification of
electric energy and to efficient
Consumers into Clients, it was possible
settlement of electric connections of
consumption to 164 thousand
to expand access to regularized
the project Transformation of
households in low income
electricity to 55 thousand families ,
consumers into Clients
communities, by 2016.
exceeding the projected target for the
year of 45 thousand families
GRI SO1
In 2012, AES Brasil consolidated the Corporate Social Responsibility Management System
(SGRSC), whose purpose is to ensure the continuous improvement of the social activities
and ensure the maximum alignment with the company’s strategy established by the
sustainability policy and in accordance with the rules and standards applicable to the
businesses of AES Group in Brazil, such as ISO 26000 and AA 1000.
The importance of the SGRSC is also reinforced by the definition of the responsibilities and
decision-making processes, ensuring: improved efficiency in the identification and priority of
the expectations of the target audiences with respect to the businesses; the proper mapping
of the social effects related to activities – which will direct the projects and action plans,
generating information that would allow the monitoring; and the rendering of accounts
internally and externally.
In 2012, R$121.6 million was invested and allocated, of which R$ 34.8 in our resources and
R$ 86.8 in incentives, in projects of promotion of access to the education, culture and sport;
inclusive professional training; energy efficiency and access to regular electricity; and social
influence for the promotion of social matters aligned with the guidelines of the sustainability
policy of AES Brasil.
It may be noticed that one of the consequences of the tariff review in AES Eletropaulo (for
more information, see page 9) was the reduction of the profit margin of the company and
hence the social investments encouraged in December 2012 to be used in 2013
74
Development and appreciation of
communities
Social investment (R$ millions)
Estimated number of benefited persons
2010
2011
2012
23,50¹
82,78
121,55
19 thousand ²
1.231 thousand
1.682 thousand
¹ In 2010, no investments of the program Turning Consumers into Clients were recorded.
² In 2012 it was not accounted for the number of beneficiaries in safety campaigns and of the program Turning Consumers into
Clients.
Private social investment (ISP)
One of the most important tools of the SGRSC is the Management Process of the Private
Social Investments, which defines – clearly and directly – the guidelines of the private social
investment in the AES Brasil and the criteria for the selection of the projects. The process in
AES Brasil is described below.
75
GRI EC8
Culture and Citizenship House – AES Eletropaulo
Main social project of AES Brasil, the Culture and Citizenship House is to transform the
reality of thousands of children, people and adults by means of activities that are focused on
art, culture, citizenship, quality of life and income generation. Directed mainly to the poor
communities, the project served directly, in 2012, approximately 4.7 thousand persons in its
activities and, indirectly, 214.3 thousand persons, with the presentations and lectures
performed. In the AES Eletropaulo units, 1.1 thousand persons were served by the activities
and 57.7 thousand for the presentations and lectures.
Operating in social and human development, the project contains seven units: São Paulo
and Osasco, with investment from AES Eletropaulo; the Barra Bonita, Lins, São José do Rio
Pardo and Caconde units, which AES Tietê is responsible for; and Novo Hamburgo, in the
state of Rio Grande do Sul, which is sponsored by AES Sul.
The program comprises two stages, whose transversal themes are the safe and efficient
usage of electricity and the responsible consumption of the natural resources. The first of
them, offered from Monday to Friday, from 8:00 a.m. to 5:00 p.m., is directed to children and
adolescents and offers activities as circus, and visual and digital art, music, theater, dance
and artistic gym. The pedagogic methodology is developed and monitored by a
multidisciplinary staff of professionals.
The other area, which is aimed at young people and adults, promotes access to vocational
and entrepreneurship courses, workshops for income generation, lectures and cultural
events.
For more information about the culture and citizenship house go to the site
www.casadeculturaecidadania.com.br
GRI EC8
AES Eletropaulo in the Schools
One of the major program projects of Consumo Mais Inteligente, (read more on page 78),
AES Eletropaulo in the Schools aims to foster change in consumption habits and works
directly in teacher training which multiplies in the classroom, information on the safe and
efficient use of electricity, besides providing three trucks with games and interactive play
activities visiting schools and communities.
In 2012, the project served 2,407 teachers from 291 public schools in the concession area
of AES Eletropaulo and was attended by 63.7 thousand students, among children and
adolescents who developed artwork on the matter, ranging from models to plays, music and
dance. The trucks hit the audience of 123.6 thousand people. Therefore, the project totaled
189.8 thousand participation of people in 2012.
76
Prêmio Criança 2012
In 2012, AES Eletropaulo received the award Prêmio Criança 2012, Prêmio Criança (Child
Award) 2012, sponsored by Abrinq Foundation/Save the Children, for the social project
Centro Educacional Infantil Luz e Lápis. This award identifies and recognizes every two
years, projects with good practices destined to children from 0-6 years, allowing visibility to
successful initiatives, developed in Brazil. In its 19th edition, the Child Award received 202
registered initiatives, which went through several stages of analysis by experts in the field of
childhood. From these initiatives, 10 were chosen as finalists and four of them were
awarded, including 3 non-governmental organizations and one company, i.e., AES
Eletropaulo.
In addition to financing Luz e Lápis, AES Eletropaulo serves on the executive management
of social institution, with volunteers comprising the Board of Executive Officers and
Supervisory Board.
GRI: EU6; EU7; EU22; EU24; EN6; EN7; EN26; EC9; SO1
Transformação de Consumidores em Clientes
Mainly focused on regularizing the informal connections (popularly denominated “cats”) and,
therefore, offering safe and reliable electricity to all persons and contributing to the welfare
of poor communities, AES Eletropaulo had adopted since 2004 the Transformation from
Consumers into Clients program.
The regularization of these connections stimulates the efficient and safe use of electricity. In
addition, many of the beneficiaries received an official address, which provides another
sense of citizenship to these poor communities, allowing bank loans and purchase in
installments, in addition to facility their entry in the formal work market. The familities served
by this program were registered by AES Eletropaulo, in partnership with the Municipalities
and the Social Development Ministry to benefit from the Social Tariff of Electricity (TSEE).
In addition to the regularization of these connections, the program performs, through the
field managers, a strong education work for the safe and proper use of electricity, directing
the communities to avoid accidents with the electricity grid and providing tips to save
electricity.
During their visits, the managers also identify some places that need some repairs, such as
the refurbishment of the internal electrical installations, replacement of lamps, replacement
of freezers for more efficient models (with the Procel A Seal) and installation of smart
showers.
These measures help families to reduce consumption and, consequently, the energy bill,
contributing to the maintenance of low default levels. The energy economy of the program,
in 2012, reached 77.839MWh/year, promoting a reduction of 26.61MWh in the peak time.
In 2012, the total number of connections reached 55,479 families, benefiting approximately
195 thousand people, besides replacing 6.507 refrigerators and 502.412 lamps, refurbish
356 homes that had poor electrical installations and install 195 systems for heating water for
bathing by means of solar energy . Investments in 2012 totaled R$ 58.7 million - R$ 23.7
million from own resources and R$ 35 million from funding incentive.
77
Main Results of Transformation of Consumers into Clients (2004 a 2012):
11,5 million lamps replaced
36 thousand freezers replaced
3 thousand internal residential refurbishments
12.5 thousand economic showers installed
215 solar heating systems for bathing water
179 thousand energy diagnoses
3.1 thousand external lighting systems
482 thousand donated electrical utility meter box
512 thousand customers served
288 low income communities benefited
2 million people benefited
R$ 379,8 million investment: R$ 183 million of own resources and R$ 196,8 million of
funding incentive
78
Main private social investments of AES Eletropaulo in 2012
GRI 2.10; 4.12; EC4; EC7; EC8; EC9; SO1; SO5; EU14
Line of activity: education, culture and sports
Project
Description
Area of influence
Number of beneficiaries
Program Consumo Mais
inteligente
Through projects in AES Eletropaulo, it aims
to raise awareness about the safe and
efficient use of electric energy and promote
environmental education. The project program
includes projects AES Eletropaulo in Schools
(read more on page 76), Viva sem Acidentes,
among others.
All concession area of
AES Eletropaulo
AES Eletropaulo in the
Schools (189,753); Viva
sem Acidentes=
(1,227,293)
House of Culture and
Citizenship
Main social project of AES Brasil, the House of
Culture and Citizenship aims to transform the
reality of thousands of children, youth and adults
through activities focused on art, culture,
citizenship, quality of life and income generation,
especially for low-income communities.
Luz e Lápis Children´s
Education Center
With the title of Oscip (Organization of Civil
Society and Public Interest), serves 300
children, from 1 to 6 years old, from low
income families or social risk.
Energia do Bem
(Good Energy)
Funds invested(R$)
R$ 6,590,022
AES Eletropaulo in the
Schools
R$ 2,934,000
Viva sem Acidentes
Sources of funds
R$ 2,934,000
of own resources and
R$ 3.656.022 of
resources of energy
efficiency
158,862 through
partipation in lectures and
presentations
R$ 995.800,00
Own resources
Two units – Santo
Amaro and
Guarapiranga, both in
the South Region of the
city of São Paulo
300 children
R$ 1,410,785
Own resources
AES Brazil volunteer program that aims to
engage and offer support to own and
contracted employees and their families who
wish to voluntarily contribute to the
development of communities where the Group
is inserted.
Applicable to all units of
AES Eletropaulo
576
R$ 145,778
Own resources
Sendi
Main event of dissemination of good practices
in the sector of energy distribution
Brazil
2.500
R$ 37.000,00
Own resources
V Fopase - Paulista
Forum of Health, Safety
and Quality of Life in the
Work of Electricity Sector
Debate on the proposals for the improvement
of policies of Safety, Health and Quality of Life
of companies in the energy sector as well as
its contractors.
Brazil
2.000
R$ 7.500,00
Own resources
Metropoles - The
Challenge of Sustainable
Development
Creation of 6 episodes on sustainable
development to be broadcast on TV Culture
Brazil
Non estimated number
145,344.59
Funding incentives Proac
Movies Room - Cine
Moviola
Aims to bring national and international
cinematography to the population. The project
has its structure made with recycled products
and is equipped with audiovisual material
State of São Paulo, in
the cities of Caconde,
Barra Bonita, Lins,
Osasco, São José do
Rio Pardo and São
Paulo
253,456.57
Cria Cores (Create
Colours)
Bring culture to the population through puppet
theater.
20 cities in the
concession area of AES
Eletropaulo
235,235.00
Urban changes in the
Paulista capital of the start
of the 20th century
Book on urban development, sanitation,
production and distribution of electricity and
gas
Brazil
170,939.19
Energy Museum Network
Operations of the Energy Museum Network
Foundation and Sanitation.
São Paulo
89,055.50
Funding incentivesProac
Filma Brasil (Recording
Brazil)
Contest of scripts for short and medium length
films, performed entirely through the Internet,
with a subject related to human development.
The proposal includes a specific web portal,
ready to receive, in a practical and instant way,
works from screenwriters, producers,
professional and amateur, individual or legal
person from the whole of Brazil.
Brazil
Prediction of about 7000
participants
131,483.50
Show musical (Musical
Show)
Cultural event that counted with the
participation of musicians of the sertanejo
kind of music.
Carapicuíba
5 thousand people
R$ 86,000.00
Own resources
Improvement in 15
lowland fields
Works carried out in fields, locker rooms and
cafeterias and installed stands and bank
reserve for players
São Paulo / South and
East Zones
Surrounding communities
R$ 167,960.34
Funding incentives PIE
São Paulo (Vila
Guacuri) and Osasco
79
Line of action: inclusive professional training
Project
Description
Area of influence
Funds invested(R$)
Sources of funds
Electricians database
(Partnership with Senai, Instituto Edson, IVC
(Instituto Vital Correia), IPESP (Special
Payments Institute of São Paulo) and others
located in concession area). Aiming to meet the
strong demand for professionals in the sector
and to ensure the quality of technical, behavioral
training and customer satisfaction, AES
Eletropaulo developed a project of Bank of
Electricians, which recruits, selects and trains
people for its own table of employees and also
for their contracted partners.
All concession area
of AES Eletropaulo
950
R$ 5.414.410,00
Own resources
Line of action: energy efficiency and access to regulated electricity
Project
Description
Area of influence
Funds invested(R$)
Sources of funds
Transformation of
Consumers into Clients
The Program of Transformation of
Consumers into Clients, which aims to
promote regular access to electricity through
the regularization of illegal connections
(known popularly as "cats") aimed at
providing safe and reliable electricity for all,
and to contribute to the well being of people
of disadvantaged communities.
All concession area of
AES Eletropaulo
55.4 thousand and 195
thousand people
R$ 58.768.947
R$ 23.7 million and R$ 35
million of resources for
Energy Efficiency Program
Line of action: social influence
Project
Description
Brazilian Corporate
Council for Sustainable
Development (CEBDS)
Through participation in technical councils and
discussion groups, CEBDS integrates the
principles and practices of sustainable
development in the context of business,
reconciling economic, social and
environmental dimensions.
Area of influence
Funds invested(R$)
Sources of funds
Brazil
R$ 16,000
Own resources
In 2012 we contributed actively to the
preparation of studies and documents such as
the Vision 2050.
International Integrated
Reporting Council (IIRC)
International coalition of regulators, investors,
companies, NGOs and other civil society that
aims the development of corporate performance
reporting, integrating economic, financial, social
and environmental outcomes.
Brazil
44.788,28
Own resources
80
Annual Social Report
Company: AES Eletropaulo
1- Base for calculation
Net revenue (NR)
Operating income (OR)
Gross payroll (GP)
2- Internal Social
Indicators
Alimentation
Compulsory social
chargespension
Private
Health
Safety and health at
work
Education
Culture
Capacitation and
professional
Daycare
or daycare
development
assistance in the profit
Participation
or
results
Others
Total- internal social
indicators
3External Social
Indicators
Education
Culture
Health and sanitation
Sport
Fight against hunger and
food safety
Other
Total of contributions for
society(excluding social
Taxes
charges)
Totalexternal social
indicators
4- Environmental
Indicators
Investments related with
production/ operation
of
Investments
in programs
and/ or
projects
Total
of external
investments
in
environment
As to establishment of
"annual
goals"
5Indicators
ofto
minimize
waste,
functional
body the
No of employees
at end
general
consumption in
of
Noperiod
of admissions during
production/ generation
period
No
contracted
andofincrease
efficiency in
employees
No
interns
the of
use
of resources
No of employees above
45 years
No
of women working in
the
% ofcompany
position of
leadership
No of blackoccupied
that workbyin
women
the
company
% of position of
leadership
occupied
byor
No
of people
disabled
black
with special needs
2012 Value (thousand reais)
Value (thous)
49,005
125,591
166,709
44,778
23,799
737
0
6,235
1,162
71,671
0
489,689
Value (thous)
8,191
2,107
0
168
0
116,132
126,599
3,570,224
3,696,823
Value (thous)
20,104
36,977
57,080
9,959,198
204,679
433,111
% over GP
% over
NR
11.31%
0.49 %
29.00%
1.26 %
38.49%
1.67 %
10.34%
0.45 %
5.49%
0.24 %
0.17%
0.01 %
0.00%
0.00 %
1.44%
0.06 %
0.27%
0.01 %
16.55%
0.72 %
0.00%
0.00 %
113.06%
4.92 %
% over OR
% over
NR
4.00 %
0.08 %
1.03 %
0.02 %
0.00 %
0.00 %
0.08 %
0.00 %
0.00%
0.00%
56.74%
1.17%
61.85%
1.27%
1,744.30%
35.85%
1806.16%
37.12%
% over OR
% over
NR
9.82 %
0.20%
18.07 %
0.37%
27.89 %
0.57%
( ) does not have goals
2012( ) meets from 0 to 50%
( ) meets from 51 to5,872
75%
(x) meets from 76 to 100%
1,071
10,251
51
1,023
1,034
26.13
1,298
5.00%
61
2011 Value (thousand reais)
Value (thous)
44,318
112,579
112,320
34,880
13,679
0
0
6,402
1,129
61,874
0
387,181
Value (thous)
13,703
11,994
0
3,521
2,224
220
31,662
4,306
35,808
Value (thous)
15,143
57,154
72,297
9,835,578
2,344,513
5
% over
% over NR
GP 8.70 %
0.45 %
22.10 %
1.14 %
22.05 %
1.14 %
6.85 %
0.35 %
2.69 %
0.14 %
0.00 %
0.00 %
0.00 %
0.00 %
1.26 %
0.07 %
0.22 %
0.01 %
12.15 %
0.63 %
0.00 %
0.00 %
76.02 %
3.94%
% over
% over NR
OR 0.58 %
0.14 %
0.51 %
0.12 %
0.00 %
0.00 %
0.15 %
0.04%
0.09%
0.02%
0.01%
0.00%
1.35%
0.32%
0.18%
0.04%
1.53%
0.36%
% over
% over NR
OR 0.65%
0.15%
2.44%
0.58%
3.08%
0.74%
( ) does not have goals
2011 ( ) meets from 0 to 50%
( ) meets from 51 to5,668
75%
(x) meets from 76 to 100%
529
11,563
19
1,108
1,113
25.98%
1,096
1.57%
71
81
6- Relevant information
as to exercise
of
Relation
between
corporate
biggest
andcitizenship
lowest
Total number
of work
remuneration
in the
accidents
Social and
company
environmental
projects
The
safety and health
developed
the
patterns
ofby
the
work
As
to union
freedom,
company
were
defined
environment
were
the right
of
collective
The
private
pension
by:
defined
by:
bargaining
internal
contemplates:
The sharingand
of profit
or
representation
of
result
contemplates:
In the selection of
suppliers,
the sameof
As to participation
ethicalnumber
standards
and
employees
in volunteer
Total
of claims
social
and by the
work
programs,
and
%
ofcritics
claims
and critics
environmental
company:
consumers
addressed
orvalue
resolved
Total
added
to
responsibility
adopted
distribute
(inofthousand
Distribution
Added
by:
R$)
Value
(DVA)
7- Other
information
2012 (thousand reais)
( ) board
(x) board
(x) board and
( and
) all
management
management
employees
( ) does not
( ) follows
OIT rules
( )involve
board
( ) board
and
management
( ) board
( ) board and
management
( ) not
( ) are
considered
( ) does not
( suggested
) supports
involve
in the
in Procon
company
3,935
in the
in Procon
21,059
company
54.2%
In 2012:
5,952,955
57.8%
86.60% government
1.81% shareholders
10.35% employees
5.24% third parties
2011 (thousand reais)
81.79
36
( ) all
employees
( ) all Cipa
(x)
incentivizes
(x) all
and
follows
employees
(x) all
OIT
employees
(x) are
required
(x) organizes
and
in Justice
incentivizes
2,376
in Justice
122%
( ) board
(x) board and
management
(x) board and
( ) all
employees
management
( ) does not
( ) follows OIT
( )involve
board
( ) boardrules
and
management
( ) board
( ) board and
management
( ) not
( ) are
suggested
considered
( ) does not
( ) supports
involve
in the
in Procon
company
4,977
in the
in Procon
26,312
company
44.0%
In 2011:
18,086,851
55.0%
70.33% government
19.44% shareholders
5.88% employees
4.35% third parties
75.73
64
( ) all
employees
( ) all Cipa
(x)
incentivizes
(x) all
and
follows
employees
(x) all
OIT
employees
(x) are
required
(x)
organizes
in Justice
and
5,360
in Justice
incentivizes
53.2%
82
Limited Assurance Report of
Independent Auditors
Limited Assurance Report of Independent Auditors
To the
Shareholders and other Interested Parties of
AES Brasil
Barueri - SP
Introduction
We have been hired with the purpose of applying the procedures of limited assurance on the
information of sustainability disclosed on the Sustainability Reports of AES Eletropaulo, AES
Tietê and AES Sul, related to the year ended of December 31, 2012.
Responsibilities of the Management of the Company
The Managements of AES Eletropaulo, AES Tietê and AES Sul are responsible for the
preparation and presentation in adequate form of the sustainability information disclosed in
the Sustainability Reports according to the Guidelines of the Sustainability Reports of the
Global Reporting Initiative - GRI (GRI-G3) and with the internal controls that have determined
as necessary to allow the preparation of these information free from relevant distortions.
Responsibility of the independent auditors
Our responsibility is to express conclusion on the sustainability information disclosed on the
Sustainability Reports, based on the work of limited assurance conducted according to NBC
TO 3000 (Work of Assurance Different of Audit and Review), issued by the Federal Council of
Accounting (CFC), which is equivalent to the international rule ISAE 3000, issued by the
International Federation of Accountants, applicable to historical non financial information.
These rules demands the fulfillment of ethical requirements, including requirements of
independence and that the work is executed with the purpose to obtain limited assurance of
the information disclosed on the Sustainability Reports, taken together, and free of relevant
distortions.
A work of limited assurance conducted according to the NBC TO 3000, equivalent to ISAE
3000, consists, mainly, of questionings to the Managements of AES Eletropaulo, AES Tietê
and AES Sul and other professional of the Company involved in the preparation of the
information disclosed in the Sustainability Reports, as well as the application of analytical
procedures to obtain evidence that allows us to conclude in the best manner of the limited
assurance on the sustainability information disclosed on the Sustainability Reports.
The proceedings applied were:
(a) the planning of works, considering the relevance, volume of quantitative and qualitative
information and operational system and internal controls that served as base for the
83
preparation of sustainability information disclosed on the sustainability Reports of AES
Eletropaulo, AES Tietê and AES Sul;
(b) the understanding of the method of calculation and the proceeding for compilation of
indicators through interviews with the responsible managers for the preparation of the
information;
(c) application of analytical procedures on quantitative information and questioning on
qualitative information and its relation with information disclosed in the Sustainability Reports;
(d) confrontation of financial nature indicators with financial demonstrations and/ or
accounting records;
(e) verification if organizational and operational limits defined by AES Eletropaulo, AES Tietê
and AES Sul for the preparation of the Sustainability Reports is aligned with the criteria
established by the Global Reporting Initiative- GRI.
We believe the proceedings applied and the evidence obtained in our work are enough and
appropriate to justify our conclusion to a limited extent.
Range and limitations
Our work had as purpose the application of procedures of limited assurance on the
sustainability information disclosed on the Sustainability Reports of AES Eletropaulo, AES
Tietê and AES Sul, not including the evaluation of the adequacy of its policies, practices and
performance in sustainability.
The procedures applied do not represent an examination in accordance to the Brazilian and
international audit rules. Additionally, our report does not provide limited assurance on the
scope of the future information (as for example: goals, expectations and projections) and
descriptive information that are subject to subjective evaluation.
In a limited assurance work the procedures applied are less extent than those applied in a
reasonable assurance work, therefore the level of assurance obtained is lower than the one in
a reasonable assurance work on the sustainability information disclosed on the Sustainability
Reports of AES Eletropaulo, AES Tietê and AES Sul.
Conclusion
Based on the procedures performed, described in this report, nothing has come to our
attention that leads us to believe that the sustainability information disclosed in the
Sustainability Reports of AES Eletropaulo, AES Tietê and AES Sul, related to the year ended
on December 31, 2012, were not compiled, in all relevant aspects, according to the
Guidelines of the Sustainability Reports of Global Reporting Initiative- GRI (GRI-G3) and with
registrations and files that served as base for its preparation.
São Paulo, February 22, 2013
KPMG Risk Advisory Services Ltda.
CRC 2SP023233/O-4
Eduardo V. Cipullo
Accountant CRC 1SP135597/O-6
84
Limited Assurance Report of
Independent Auditors
To the
Shareholders and other Interested Parties of
AES Brasil
Barueri - SP
Introduction
We were hired with the purpose of applying procedures of limited assurance on the
information disclosed on the report of "IV Cycle of Dialogues with Public Relation
AES", related to the year ended on December 31, 2012, prepared under the
responsibility of its Management. Our responsibility is to issue a Report of Limited
Assurance on this information.
Procedures Applied
The procedures of limited assurance applied were performed according to Rule NBC
TO 3000 - Work of Different Assurance of Audit and Review, issued by the Federal
Council of Accounting (CFC) and with ISAE 3000- International Standard on
Assurance Engagements, issued by the International Auditing and Assurance
Standards Board (IAASB) both for assurance work that are not of audit or review of
historical financial information.
The procedures of limited assurance comprised: (a) the planning of the works,
considering the relevance, the coherence, the volume of quantitative information and
operational systems and internal controls that served as base for the preparation of
the report " IV Cycle of Dialogues with Public Relation AES"; (b) the understanding
of the method of engagement and consolidation of indicators through the
participation in dialogue panels with publics relation occurred between September
and November, 2012; (c) confrontation, based in sampling, of qualitative information
disclosed in the report " IV Cycle of Dialogues with Public Relation AES".
Criteria of preparation of information
The sustainability information disclosed in the report " IV Cycle of Dialogues with
Public Relation AES" were prepared according to the guidelines for sustainability
reports issued by the Global Reporting Initiative (GRI G3) and with principles of rule
AA 1000 APS (2008).
Range and limitations
Our work had as goal the application of procedures of limited assurance on the
information disclosed in the report " IV Cycle of Dialogues with Public Relation AES",
not including the evaluation of adequacy of its policies, practices and performance
on sustainability.
The procedures applied do not represent an examination according to the Brazilian
and international rules of audit. Additionally, our report does not provide limited
assurance on the scope of future information (as for example: goals, expectations
and ambitions) and descriptive information that are subject to subjective evaluation.
85
Conclusion
Based on our review, we do not have any knowledge of any relevant change that
must be made in the information disclosed on the report "IV Cycle of Dialogues with
Public Relation AES" related to the year ended on December 31, 2012, so that it is
prepared according to the registrations and files that served as base for its
preparation.
São Paulo, February 22, 2013
KPMG Risk Advisory Services Ltda.
CRC 2SP023233/O-4
Eduardo V. Cipullo
Accountant CRC 1SP135597/O-6
86
Index
GRI 3.12
This AES Eletropaulo Sustainability Report meets the standards for level B+ of application
according to the guidelines of the Global Reporting Initiative (GRI).
The following table presents the information and reference of the chapters in which are
located the GRI consolidated responses to this report.
PROFILE ITEMS
Indicator
Page
1.1. Message from the CEO
4, 6
1.2. Description of the main impacts, risks and opportunities
7, 23
Organizational Profile
2.1. Name of the organization
5, 7
2.2. Main brands, products and/or services
7
2.3. Operational structure of the organization
8
2.4. Location of organization´s headquarter
4, 7, 8
2.5 Countries in which the organization operates and in which its main operations are
5, 8
located
2.6. Type and judicial nature of the property
7
2.7.Type of markets
7, 8
2.8. Size of the organization
8
2.9. Main changes on the report
89
2.10. Awards and Recognitions
9, 10, 26
Parameters for the Report
3.1. Period covered
4
3.2. Date of the most recent previous report
4
3.3. Cycle of report issuance
4 (annual)
3.4. Contact for doubts
4
3.5. Process for definition of the report´s content
4
3.6. Limit of the report
4, 7
3.7. Specific limitation as to scope or limit
Answer: there are no specific limits as to the scope or limits
3.8. Base for the preparation on the report
4
3.9. Techniques on the measurement of data and base for calculation
Answer: The measurements follow instructions of the GRI guidelines. Otherwise, notes inform the techniques
used
3.10. Reformulation of information from previous reports
Answer: There was a rectification related to customer service reports submitted in 2009 and 2010, as well as
some
safety indicators
dueinto
the
change
in or
methodology
for method
calculating data. All corrections are identified by
3.11. Significant
changes
the
scope,
limit
measurement
explanatory
Answer:
Thenotes.
conversion methodology of the volume of waste by weight of pruning significant changed compared
to theTable
previous
due tothe
thelocation
improvement
the method of calculation.
3.12.
thatyear
identifies
of GRI of
index
89
3.13. Political and actual proactive related to search for external verification to the report 83, 84, 85, 86, 87
The Global Reporting Initiative is checking the level of adherence to their guidelines in this report. The economic
and
financial data,
the GRI indicators
and IBASE Social Report were audited by KPMG SA. This message will be
Governance,
Commitments
and Engagement
overwritten
after
completion
of
the
GRI
check
4.1. Governance Structure
15, 16, 17, 18
4.2. Chair of the Highest Governance Body
17, 18
4.3. Independent or non-executive members of the highest governance body
17, 18
4.4. Mechanisms for shareholders and employees to provide recommendations
15, 16, 17, 18
4.5. Relationship between remuneration and performance of the organization
15, 16, 27
4.6. Processes to avoid conflicts of interest
15, 16,
4.7. Qualifications of members of the highest governance body
17, 18
4.8. Mission and Values, codes of conduct and principles relevant
11
4.9. Responsibilities for implementation of political, economic, ambient and social
15, 16
87
4.10. Self evaluation of the highest governance body
15, 16
4.11. Precautionary principle
15, 16
4.12. Charters, principles or other initiatives developed externally
25, 26, 80, 81
4.13. Participation in associations and national/ international organisms
25, 26, 80, 81
4.14. Relationship of stakeholder groups engaged by the organization
23, 29, 30
4.15. Basis for the identification and selection of stakeholders with whom to engage
23, 29, 30
Answer: Stakeholders are determined and chosen internally, taking into account the strategic importance of each
of theApproaches
selected groups
to the activities
of the company
4.16.
to stakeholders
engagements
23, 25, 29, 30
4.17. Main themes and concerns raised by means of stakeholders engagement
23, 25, 29, 30
Answer: The process of construction of the Sustainability Platform counted with the involvement and participation
of
various stakeholders
of the company. The historic, as well as the material matrix, can be verified
PERFORMANCE
INDICATORS
at:www.aesbrasilsustentabilidade.com.br
Indicator
Page/answer
EC1. Direct economic value generated and distributed
446
EC2. Financial implications and other risks and opportunities due to climate change
41
EC3. Coverage of the pension plan benefit
Answer: Participation in private retirement plans of AES Tietê is voluntary and covers all employees of the
company.
The plans
offered
the CESP
Previdência Itaú Unibanco and MetLife,
having
three
EC4.
Significant
financial
aidare
received
from Foundation,
the government
78, 79,
81, 83
different
choose - set, supplementary and voluntary - and contributions are established according to the
Presenceoptions
on the to
Market
characteristics
with payments
made
by employees
the company.
EC5.
Variation of
oneach,
the proportion
of wage
compared
to local and
minimum
wage
68
EC6. Policies, practices and proportion of costs with suppliers
72
EC7. Hiring of local staff
80
Indirect t Economic Impact
42, 43, 76, 78, 79, 80,
EC8. Impact of infrastructure investments for public benefit
81
EC9 Indirect economic benefit
78, 79, 80, 81
ENVIRONMENTAL
Materials
EN1. Materials used by weight or volume
58
EN2. Percentage of materials used that are recycled
Energy
EN3. Direct energy consumption broken down by primary energy source
60, 61
EN4. Indirect energy consumption broken down by primary energy source
60, 61
EN5. Energy saved due to improvements in conservation and efficiency
54
EN6. Initiatives to provide products and services with low energy consumption
55
EN7. Initiatives to reduce indirect energy and reductions obtained
54
Water
EN8. Total water withdrawal by the source
55
EN9. Water sources affected by withdrawal of water
55
EN10. Percentage and total volume of water recycled and used
-Biodiversity
EN11. Location and size of land owned
61
EN12. Significant impacts on biodiversity of activities, products and services
61
EN13. Protected or restored habitats
62
EN14. Strategies for managing impacts on biodiversity
57, 58
EN15. Number of species on the Lista Vermelha of IUCN and other conservation lists
-Emissions, effluents and waste;
EN16. Total direct and indirect emissions of greenhouse gases
60, 61
EN17. Other relevant indirect emissions of greenhouse gases
60, 61
EN18. Initiatives to reduce emissions of greenhouse gases and reductions achieved
60, 61
EN19. Emissions of substances that destroy the ozone layer
61
EN20. NOx, SOx and other significant atmospheric emissions
-EN21. Total water discharge by quality and destination
56
EN22. Total weight of waste by type and disposal method
58, 59
EN23. Total number and volume of significant spills
Answer: It was not recorded any significant oil; fuels spills; leakage of chemicals and other waste in 2010, 2011
and
2012
EN24.
Weight of transported waste deemed hazardous
59
88
EN25. Description of protection and index of biodiversity water bodies and habitats
Answer: No collections / water disposal / effluent were made in water bodies considered sensitive and / or in
protected areas.
Products
and services
EN26. Initiative to mitigate the environmental impacts
57, 58
EN27. Percentage of products and recovered packaging materials, by Category of
Not applicable
products
Accordance
EN28. Value of fines and total number of sanctions for noncompliance with
58
environmental laws
Transport
EN29. Environmental impacts related to transportation of products and of workers
60, 61
Answer: The company does not transport goods and workers being environmental impacts related to greenhouse
gas
emissions presented in the indicator EN16.
General
EN30. Investments in environmental protection
58
LABOR PRACTICES AND DECENT WORK
Employment
LA1. Total workforce, by employment type, employment contract and region
66
LA2. Total number and turnover rate of jobs, by age, gender and region
68
Reactions between Labor and Governance
LA3. Comparison of benefits of full time employee and temporary
68
LA4. Percentage of employees covered by collective bargaining
Answer: 100% of employees are covered by collective bargaining agreement
LA5. Description of notifications (terms and procedures)
Answer: In the Collective Agreement it does not mention the term or period of notice that employees are notified.
It is saidand
thatsafety
if significant
operational changes occur that they are previously discussed with the Union, and the
Health
at work
company
providesofthe
entity
with allrepresented
information in
related
operational
changes and the referred
LA6. Percentage
total
workforce
formalto safety
and health
33 study of the
same.Percentage
This occurred
in the
moving to
the new headquarters
in Barueri
(SP).
LA7.
of total
workforce
represented
in formal safety
and health
31, 32
LA8. Education programs, prevention and risk controls
32, 33
LA9. Themes related to safety and health covered in formal agreements with trade
unions
Answer: Formal agreements with trade unions cover the following topics related to health and safety at Work:
provision and use
of personal protective equipment (PPE), training and education, right to refuse unsafe work,
Training
Education
and
compliance
with ILO
- International
LA10.
Average hours
of training
per dayLabor Organization.
-LA11. Programs for skills managements and lifelong learning and retirement
65
LA12. Percentage of employees receiving performance reviews
64
Diversity and Equal Opportunities
LA13. Composition of senior management and council, and proportion of groups and
67
genderComposition of senior management and council, and proportion of groups and
LA14.
68
gender
LA15. Return to work and retention rates after maternity/ paternity leave, described by
-gender RIGHTS
HUMAN
Buying Process
HR1. Description and percentage of policies, guidelines to manage all human right
-aspects
in investments
HR2.
Contracted
companies are submitted to evaluation on what refers to human rights
73
HR3. Policies on evaluation and treatment on the performance of human rights
14
Non Discrimination
HR4. Total number of discrimination incidents and measures taken
14
Freedom of Association
HR5. Policy of freedom of association and the degree of their application
Answer: No operations in which there is risk to freedom of association were identified. It consists in the Collective
Agreement
Child
Laborof AES Tietê a clause of Union Relations Policy, recognizing the union as the legitimate
representative
employees.
This
ensures that
the union
releases of
HR6. Measuresoftoitscontribute
to the
eradication
of child
labor exercises its representation through
14
union
leaders,
achievements
meeting,
union
officials
access
to
the
premises
of
AES
Eletropaulo,
union
Forced labor/ slave
membership,
distribution
of information,
participation
in corporate
meetings and availability of
HR7. Measures
to contribute
to the eradication
of forced
labor
14the minutes of
Cipas.
Safety Measures
HR8. Measures to contribute to the eradication of forced labor
-Indigenous Rights
HR9. Total number of incidents or violations involving rights of indigenous people and
-the
measures
taken
HR10.
Percentage
and total number of transactions that have been analyzed for risks
73
related to human rights and/ or the impact of such risks
89
SOCIETY
Community
SO1. Programs and practices to evaluate and manage the impacts of operations on the
74, 77, 78, 79, 80, 81
communities
Corruption
SO2. Units analyzed for risks related to corruption
12, 13
SO3. Percentage of employees trained in anti corruption policies and procedures
12, 13
SO4. Answer to cases of corruption
13
Public Policies
SO5. Answer to cases of corruption
81
SO6. Policies of financial contributions to political parties, politicians or institutions
Answer: AES Brazil and its subsidiaries do not contribute to political parties in the country.
SO7. Number of lawsuits for unfair competition
-Accordance
SO8. Fines and description of non monetary sanctions
PRODUCT LIABILITY
Health and safety of the client
PR1. Policy to safeguard the health and safety during use of the product
31
PR2. Non conformities related to the impacts of products and services
Answer: There were no cases registers of non conformity related to health and safety of consumers
Development of products and Services
PR3. Type of information on products and services required by labeling procedures
-PR4. Non conformities related to the impacts of products and services
-PR5. Practices related to Customer Satisfaction, including results of survey
37, 38, 39, 40
Communication and Marketing
PR6. Programs for adherence to laws, standards and voluntary codes
-PR7. Cases of non compliance related to regulations and voluntary codes concerning
marketing
communication
Answer:
There
were no cases of non-compliance related to regulations and voluntary codes concerning marketing
communications.
PR8. Proven complaints related to the violation of privacy or lost of customer privacy
Compliance
PR9. Fines for failure to perform in providing products and services
14, 40, 43
SECTOR INDICATORS
EU1. Installed capacity (MW), discriminated by the source of energy and by regulatory
7
system
EU2.
Net production of energy, discriminated by the source by primary energy source
and regulatory
system
Answer:
Indicator
not applicable to AES Sul.
EU3. Number of consumer units that are residential, industrial, institutional and
8
commercial
EU4. Length of transmission and distribution lines overhead and underground
8
EU5. Allocation of allowances of emission CO2 equivalent, described by market
structureThis
and indicator
carbon credits
Answer:
does not apply to Brazil, because it is the allocation of emission permits, something that
thereManagement
isn´t in the country.
EU6
approach to ensure the availability and reliability of electricity supply
41, 42, 43, 44, 53, 55,
in the Management
short and longprograms
term
77 77
EU7.
on the demand side
55,
EU8. Research and development in reliability of supply and sustainable development
44
Answer: According to the regulation of the electricity sector, 0.2% of net operating revenues of AES Eletropaulo is
intended
for research
and development
program
, having been invested in 2012, R$ 22.8 million.
EU9. Provision
for decommissioning
of power
plants
Answer: Indicator not applicable for AES at Brasil.
EU10. Planned capacity compared to the projected electricity demand in the long term,
-discriminated
byefficiency
energy source
and regulatory
system by energy source (%)
EU11.
Average
of thermoelectric
generation
Answer: Indicator not applicable to AES Eletropaulo.
EU12. Percentage loss of transmission and distribution in relation to the total of energy
53
EU13. Biodiversity of replacements habitats of affected areas
-EU14. Programs and processes that ensure the availability of skilled workforce
78
EU15. Percentage of employees entitled to retirement in the next five to ten years,
-brokenPercentage
down job category
and region
EU16.
of employees
entitled to retirement in the next five to ten years,
broken down
job category
andofregion
Answer:
All safety
guidelines
AES Sul are applicable to its suppliers in the performance of their hired activities.
EU17. Days worked by contract workers and subcontractors undergo training relevant to -health
safety of outsourced and subcontractors undergo training relevant to health
EU18. and
Percentage
and safety
90
Answer: 100% of employees are undergoing training and safety assessments.
EU19. Participation of stakeholders in decision making related to planning of
-infrastructure
development
EU20.
Measures
to contingency planning, management plan and training program for
31
disasters/
emergencies
and recovery
plansmanagement plan and training program for
EU21.
Measures
to contingency
planning,
31, 41, 42
disasters/
emergencies
andthose
recovery
plans
EU22. Programs,
including
in partnership
with the government, to improve or
77
maintain
access toincluding
electricity
and in
customer
support
EU23. Programs,
those
partnership
withservice
the government, to improve or
-maintain
access to electricity
and customer
service
EU24.
Practices
address barriers
related support
to language,
culture, low education and
77
specialNumber
needs which
hinder the
electricity
and for
service
to thecompany´s
consumer, as
EU25.
of accidents
andaccess
deathstoinvolving
service
users
involving
34
well asPercentage
its
safe use
assets,
including
judicial
decisions
agreements
pending or
legal
cases related
EU26.
of population
in and
areas
with unmetand
distribution
regulated
service to
diseases
Answer: There are no demands of new requests repressed , since 100% of the concession area municipalities
are
universalized.
The new requests
arise from
growth
anddiscriminated
are met by thebydeadlines set by law, and
EU27.
Number of residential
disconnections
for population
non-payment,
broken
are
considered
the
program
of
regularization
of
illegal
connections
(Turning
Consumers into Clients).
duration
of
disconnection
and
by
regulatory
system
Answer: In 2012 there were 583.819 occurences.
EU28. Frequency of interruptions of power supply
43
EU29. Average duration of interruptions of power supply
43
EU30. Average availability factor of the power plant, discriminated by energy source and
by regulatory
system
Answer:
Indicator
not applicable to AES Eletropaulo.
INFORMATION ON MANAGEMENT APPROACH
Approach
Approach
Economic performance
EC
Presence in the market
Indirect economic impacts
Materials
Energy
Water
Biodiversity
EN
Emissions, effluents and waste
Products and services
Compliance
Transport
General
Employment
Rel. between work and governance
LA
Health and safety at work
Training and education
Diversity and equal opportunity
Buying process
Non discrimination
Freedom of association
HR
Child labor
Forced/ slave work
Safety practices
Indigenous rights
Community
Corruption
SO
Public policies
Anticompetitive behavior
Compliance
Health and safety of the client
Labeling of products and services
PR
Communication and marketing
Client´s privacy
Compliance
Approach
45
7, 8
78-81
57-62
63-69
73
14, 15
30-35
90
72
12
78, 79
14, 15
32, 33
90-91
41
11-14
91
Credits
General Coordinator
Paulo Camillo Vargas Penna
Vice-CEO of Institutional Relations, Communication and Sustainability
Content Guidance
Luciana Alvarez
Sustainability Management
Content Coordination
Luiz Pires
Sustainability Specialist
Wording and edition
Sustainability Report
Revision
Assertiva Produções Editoriais
Graphic Project, layout development and graphic production
Ricca RI
92

Efficient Use of Resources

Transcription

Similar documents

March 2011

AES Panamá, SRL

OilnCO do Or~siI/U.S. Region

B E TI NIEMEYER

2014 Target Corporate Social Responsibility Report

Company Overview Brochure

Untitled - Nederlands Consulaat-Generaal in Rio de Janeiro, Brazilië

Sustainability Report Hochland Deutschland GmbH

NEW The Best in Outdoor Living Spaces

View Uploaded Details - SDM College of Engineering and Technology

Sem título-1