Environmental Due Diligence

Within the scope of the Sustainability 4.0 Program, Eletrobras developed the “Sustainable Management of the Value Chain” Project, which has as one of its objectives to establish the structured Due Diligence process of suppliers in environmental, human rights and integrity aspects standardized for Eletrobras companies .
As a result of this project, Eletrobras started to adopt, in 2021, an Environmental Due Diligence process for new suppliers with the objective of knowing the performance of these suppliers in relation to environmental issues and good practices; identify whether the supplier adheres to/aligns with the rules and practices of the Eletrobras Companies, in particular the Environmental Policy, the Code of Ethical Conduct and Integrity and the Guide of Conduct for Suppliers, and encourage the adoption of environmentally appropriate practices in our supply chain . The process seeks to increase supplier engagement with socio-environmental issues

For the Environmental Due Diligence process, a questionnaire was prepared containing questions related to topics such as environmental legislation, impacts and management and good practices, among others. Criteria were defined for classifying suppliers for which a more in-depth assessment is carried out to support actions for monitoring and improving their environmental performance.
The questionnaire has specific questions about water resources, such as water management, liquid effluents, water efficiency and water footprint, aiming to identify suppliers' practices related to this topic. The analysis of the suppliers' responses indicates the need for actions on the part of the Eletrobras companies, which may vary from due diligence to the identification of opportunities to improve suppliers' practices and/or recognition of best practices developed by the supplier and possibilities for sharing with other suppliers.
For identified opportunities for improvement, plans are prepared to guide the actions that will be adopted with suppliers.

The Environmental Due Diligence of Suppliers is a structured process that makes up the procedures for contracting suppliers at Eletrobras companies. The completed questionnaires are valid for 1 year. After this period, the supplier must respond again to the current questionnaire and provide updated information.

The Supplier Environmental Due Diligence process is conducted by specialists from the Eletrobras companies designated to evaluate and classify suppliers according to their responses. The following classifications are currently being used:
• Suppliers that require due diligence
• Suppliers that must be accompanied
• Suppliers for which actions to improve socio-environmental practices can be foreseen
• Suppliers that have good socio-environmental practices





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