Water-related risk mapping

The main objective of Integrated Risk Management at Eletrobras Companies is to avoid the occurrence of events that may negatively impact their strategic objectives, in favor of generating and preserving value and providing transparent information to the market and its shareholders.
The risk management process is the translation of a single Corporate Risk Management Policy, approved and reviewed by its Board of Directors in its most recent version of September 2019.
The main source of power generation used today by Eletrobras is hydro and there are several risks associated with this type of generation. Currently, for the company as a whole, the most important risk related to this type of activity is the hydrological one, which consists of maintaining a systemic production level below the physical guarantee of the plants that make up the regulated energy market. This risk can materialize mainly due to the water scarcity factor. In this way, the company seeks to prevent its materialization by renegotiating the hydrological risk and carrying out an “Energy Hedge”.
Regarding water stress, Eletrobras removes less than 1% of water from areas with this characteristic. To assess the location of projects in relation to water stress, Eletrobras adopts the methodology and results of the “Conjuncture of Water Resources in Brazil”, by ANA (National Water Agency), which annually performs a balance between water availability and the demand for resources through the analysis of the relationship between the catchment flow for consumptive uses and the water availability by stretches of watercourses.
We are considered a leading company with the best market practices in the Water Security dimensions of the Carbon Disclosure Project (CDP) Water. In 2021, we received an 'A' score for water security in CDP

In 2015, the Water Resources Working Group – GTRH, which has representatives from all Eletrobras companies, carried out a diagnosis of the use of water for the generation of electricity in four thermoelectric plants and two thermonuclear plants of the Eletrobras companies. The plants selected for on-site visits by GTRH professionals were chosen according to their location and generation process, with priority given to plants with the highest installed capacity.
As a way of helping to obtain the information of interest, a form was prepared by the GTRH containing information regarding the use of water for the generation processes to be surveyed for each enterprise. As a result of the work carried out, it was possible to have a diagnosis of the processes that use water, the types of water uses (consumptive and non-consumptive), the amounts of water used, among other information related to the management of water resources.
It was concluded from the work carried out in 2015 the importance of water for the generation of energy in thermal plants, and that the knowledge of the processes of water use in the generation of energy in thermal plants allows a better follow-up and control, with the objective of reducing risks related to water and to have a more rational use of water resources.

As a way to better identify and report risks related to water, the GTRH will expand the identification of Eletrobras companies' projects located in areas subject to water stress, considering, in addition to hydroelectric plants, also thermoelectric plants. To do so, in principle, the same methodology adopted for hydroelectric plants will be used, which considers the quantitative water balance by watercourse or hydrographic basin obtained from the National Water Resources Information System – SNIRH of the National Water Agency.
According to the quantitative water balance methodology, water stress occurs when the enterprise is located in watercourses in a “critical” or “very critical” situation. ANA's SNIRH provides a georeferenced map of Brazil with the hydrographic base with the basins and watercourses. With the information on thermoelectric plants provided by the Eletrobras companies and the use of the SNIRH map, it will be possible to assess whether these operations are located in areas of water stress.

The Water Resources Working Group – GTRH will first assess whether the methodology for identifying thermoelectric plants located in water stress areas to be used in the work will be the same methodology already adopted for its hydroelectric plants. Once the methodology has been defined, it will be verified that the thermoelectric plants of the group's companies are located in an area of water stress. After completing the identification work, an annual follow-up will be carried out by the GTRH to check whether there has been any change in the water stress conditions of the basins where the thermal power plants are located.

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