Alupar Investimento SA 2021 Sustainability Report

Sustainability
Report
2021
SUSTAINABILITY REPORT 2021 PRESENTATION ESSENCE CONNECTIONS TEAM ENVIRONMENT GRI CONTENT INDEX ACKNOWLEDGMENTS 2
TABLE OF CONTENTS
Presentation Team
03 History & future 36 Care for people

04 Welcome 37 Alupar Team
05 Message from Management 42 Occupational health and safety
06 Highlights
Environment
Essence 49 Care for the planet

07 Strategic Vision 50 Environmental management
51 Biodiversity
08 Alupar way of being
55 Emissions
15 Sustainability journey
56 Energy
18 Corporate governance
58 Water and effluents
61 Waste
Connections
25 Value chain Exhibits

26 Efficient relations GRI
65 Content index
30 Financial performance
80 Acknowledgments
PRESENTATION
History
& future
Welcome
Message from Management
Highlights
Welcome
Alupar publicly presents its second Sustainability We also disclose material topics (materiality
Report (employees, investors, suppliers, matrix) and connections with the Sustainable
customers and other stakeholders), reflecting Development Goals (SDG). Report content
the 2021 cycle (results from January 1 to discusses corporate governance model,
December 31), and discloses operational data engagement and commitments with employees,
in Brazil, including Transmissora Brasileira de value chain and environment. GRI 102-46, 102-54
Energia (TBE) – a joint venture with Taesa –
and Sistema de Transmissão Nordeste S.A In case of doubts or suggestions about
(STN), a partnership with Chesf –, as well as shared information, send a message via
opportunities and challenges, purposes and e-mail: ri@alupar.com.br GRI 102-53
Alupar way of being. GRI 102-40, 102-50, 102-52
Join us in this reading!
Elaborated pursuant to GRI standards (Global
Reporting Initiative), main global sustainability
reporting methodology), Core option, this
publication reports the qualitative and
quantitative indicators focused on the most
relevant topics for the company’s stakeholders,
as well as energy sector and the Sustainability
Accounting Standards Board (SASB). Financial
performance information was audited by
Ernest & Young Auditores Independentes.
Message from Management GRI 102-14
Founded in 2007, Alupar remains committed the ten Global Principles to its business. The Amid a scenario of water crisis in 2020/2021,
to create value for society and shareholders, greenhouse gas (GHG) emission inventory was these projects implementation were essential
investing in technical expertise, financial discipline, also a highlight, part of the Company’s efforts to to SIN, by interconnecting the Northeast and
and social responsibility to move forward with fight against global warming and climate change. Southeast regions, playing an outstanding
sustainable growth. Despite the challenging role in the distribution of energy surplus
scenario of a lingering pandemic, the Company The year ended with a net revenue of R$5.23 stemming from wind and solar plants.
endeavored efforts to minimize the impacts, billion and an Ebitda of R$3.92 billion.
implement projects and deliver positive results. Net income totaled R$1.12 billion, Alupar believes in the sustainable development
versus R$942.1 million in 2020. and its business model, in which economic
Various measures were adopted to advance the growth, environmental protection and social
ESG (environmental, social and governance) These results were driven by entire team’s inclusion are fine-tuned and balanced. With
agenda, such as, the engagement of an external competence and efforts, recognized by the an eye on the future, the Company actively
advisory firm to assess the implementation Company, which continues investing in its participates in the construction of a legacy
of ESG criteria and define an action plan; the employees’ development and wellness. An for today’s and future generations, primarily
adoption of initiatives to bolster corporate advisory firm was engaged to build a fairer and working with renewable energy projects.
governance, among them, the creation of a more diverse company, and take its first step
specific Code of Conduct for suppliers, the hosting towards the Diversity & Inclusion Program. I invite you to get to know Alupar’s work and
of the Compliance Day and the outsourcing purpose through this Sustainability Report!
of a whistleblowing channel for 2022. In earlier 2022, we concluded the investment
cycle of Aneel’s auctions 2016/2017, by
In 2021, the Company’s adhesion to the United delivering eight assets (ETAP, ETC, EDTE,
Nations (UN) Global Compact was a milestone ETB, TPE, TCC, TSM and ESTE), totaling
in its sustainability journey, this meant the 2,031 km of transmission lines. Paulo Roberto de Godoy Pereira
Company’s commitment to connect the SDG and CEO
Highlights
2nd
The Company becomes signatory of Implementation of Ranked amongst
Global TCC and TSM 1,000 largest 127 th

consecutive year
Compact Transmission lines Brazilian companies by Isto É
Dinheiro ranking, highlighting:
largest Brazilian company in the
ranking of Valor Grandes Grupos awarded as “Lugares Incríveis para Trabalhar”
of the United Nation (UN), (Transmissora Caminho do Café S.A), between 3rd in the ranking of electricity magazine, top 4th in revenue (Amazing Places to Work for) and Brazil’s best
committed to the Ten Principles and the states of Minas Gerais and Espírito and companies. growth, 10th in return on equity and companies, an initiative of UOL portal and
SDG in businesses. TSM (Transmissora Serra da Mantiqueira S.A), 11th in net income. Administration Institute Foundation (FIA) that award
in Rio de Janeiro and São Paulo. the companies’ people management best practices.
ESTE
719 1,637 127 th
122 nd
employees. suppliers. position in the ranking of Brazil’s 500 top posição in the ranking of Valor 1000 magazine, Conclusion
companies, by Época Negócios magazine. from Valor Econômico newspaper. Southeast Energy Transmission Company
(Empresa Sudeste de Transmissão de
Energia) in earlier 2022.
Strategic
ESSENCE
vision
Alupar way of being
Sustainability journey
Corporate Governance
Alupar way of being

Alupar Investimento S.A is a national- As a publicly-held company, its shares are traded
private controlled holding, headquartered on the Brazilian stock exchange, B3, the Company
in the city of São Paulo, operating in the is governed by its bylaws and other applicable
transmission and renewable energy generation legal provisions, including Law No. 6.404 of
segments (combining water, wind and December 15, 1976 (Brazilian Corporation
solar energies). GRI 102-1, 102-2, 102-3 Law), and B3 Level 2 Listing Rules. GRI 102-5
The Company is present in 14 Brazilian states One of the Company’s strategies is to seize
(serving generation, distribution companies, growth opportunities through greenfield projects
consumers, importers and exporters), as well at ANEEL’s auctions for electricity generation
as in Colombia and Peru, in generation and and transmission in Brazil. The low-carbon
transmission segments. In Latin America, economy energy transition composes Alupar’s
the objective is to execute projects in performance, which seeks to contribute to a
countries with economic, institutional and sustainable future and fight against climate
regulatory stability. GRI 102-4, 102-6 change that affects the planet and businesses.
Renewable energy is the energy of the future.
Considered one of the largest 100% private
companies in Brazil’s energy transmission
segment, in terms of Annual Permitted Revenue
(RAP), its commitment is to create value for
society and shareholders with investments in
technical expertise, strong financial discipline, We create value for society and
social and environmental responsibility. GRI 102-7 shareholders with investments
in technical expertise, strong
financial discipline, social and
environmental responsibility.
Mission, Vision and Values

GRI 102-16
Mission Values
Transmit and generate power with
corporate, social and environmental
responsibility, creating value for Commitment Meritocracy
shareholders, economic development,
and people’s wellness.
Respect Result
Vision
Be a respected, admired, modern Planning Innovation
and effective company, with the
best performance indicators in
the sector in which it operates.
Ethics & Transparency
Institutional Relations
GRI 102-12, 102-13
Alupar values partnership and relationship ABRAGEL – Brazilian Association

with institutions relevant for society and of Clean Energy Generation
its area of activity. In 2021, the Company
adhered to the United Nations (UN) Global ABEEólica – Brazilian
Compact, another step for the Company Association of Wind Energy
connect the SDG and Ten Global Principles
to its businesses. The relationship with Through these associations, we participate in
other associations is essential, such as: the public policies development and sector
planning along with agencies, regulatory
Apine – Brazilian Association of authorities and government. EU 19
Electricity Independent Producers
ABDIB – Brazilian Association of

Infrastructure and Base Industries
We adhered to the United Nations (UN) Global

Compact, a relevant initiative to connect the SDG
and Ten Global Principles to our businesses.
Timeline 2008 to 2011 2014
EBTE, ESDE, ETEM, ETVG, TME, TNE, ETSE, The Company wins the
Get to know key events over Ferreira Gomes and Energia dos Ventos Lot C (ELTE) of ANEEL’s
Alupar’s 14-year history concession through auctions held by ANEEL. Auction 001/2014, in which
it obtained the concession
Authorization to implement SHPP of transmission facilities.
Morro Azul, in Colombia.
2007 2013
Alupar is founded, a private-national control holding. Alupar is registered on São Paulo Stock
Exchange - BM&FBovespa on April 23, 2013.
Corporate restructuring with acquisitions and Its Units are traded under the ticker ALUP11
investments, now holding equity interests in and are composed of 1 common share and 2
the following energy transmission companies: preferred shares (1 Unit = 1 ON + 2 PN).
EATE, ECTE, ENTE, ERTE, ETEP, ETES, Lumitrans,
STC, STN, Transirapé, Transleste and Transudeste; Authorization to build the hydroelectric power
as well as energy generation companies: Foz plant La Virgen (93.8 MW), in Peru is obtained.
do Rio Claro, Ijuí, Queluz and Lavrinhas.
2016 2018 2021
The Company wins the Lots I (ETAP) The Company wins Lot O, owning equity 7,929 km energy transmission lines
and T (ETC) of ANEEL’s Auction No. interest held by Eletrobrás in Aete, distributed in 30 companies. Consolidation
13/2015, in which it obtained the through Eletrobras Auction No. 01/2018 of 12 generation assets totaling: 598.1
transmission facilities concession. to sell equity interests and subsidiaries MW (water energy), 161.7 MW (wind
in Eletrobrás’ Special Purpose Entities. energy) and 61.7 MWp (solar energy).
The Company wins the Transmission
Auction No. 13/2015 – 2nd Phase of Out of 42 assets controlled by Alupar, 36 of
Lots 2 (TPE) and 6 (TCC), and through them are commercially operating, of which 27
its subsidiary EATE. Lot 22 (ESTE). are transmission assets, 8 water generation
assets and 1 wind generation complex.
The Company wins the Bid UPME 07-2016
(Colombian Energy Transmission Company),
through its subsidiary Alupar Colômbia.
2017 2020
The Company wins Lot 19 (TSM) Grants are issued to make feasible the
of ANEEL Auction No. 05/2016, in implementation of two wind power plants
which it obtained the transmission composing the Agreste Potiguar wind complex,
facilities concession. in the city of Jandaíra (Rio Grande do Norte).
These two wind power plants have installed
Equity interest acquired in transmissions capacity of 63 MW. The Agreste Potiguar
company ETB and EDTE. Wind Complex has seven power plants, with
total installed capacity of 214.2 MW.
Grant issued to build the photovoltaic power plant

Pitombeira, in the city of Aracati (Ceará), with
solar energy installed capacity of 61.7 MWp.
How Alupar operates in

the market
Transmission Generation
30 transmission systems through

Alupar holds the concession/authorization
concessions, 29 in Brazil (with of 12 assets totaling 821.5 MW of installed
30-year duration) and one in capacity, distributed by four hydroelectric
Colombia, perpetual concession. power plants (HPPs), five small hydroelectric
power plants (SHPPs), two wind complexes
ide domestic operating
W and one photovoltaic power plant, of which:
transmission grid composed of
aerial and substation lines, with 673.8 MW operational;
nearly 8 thousand km of lines.
63.0 MW wind and 61.7 MWp solar

Alupar is present in Brazil’s five regions,
energy under implementation;
according to the map on page 14.
23.0 MW water energy under

environmental licensing stage.
ssets located in Brazil,

A
Colombia and Peru.
Read more about Alupar’s business

partners on page 29.
Presence in Brazil
and Latin America
GRI 102-4
Climate and water

effects
The hydroelectric and small hydroelectric

power plants compose the Energy Relocation
Mechanism (MRE), a financial provision that
seeks to share the hydrological risks affecting
the energy generation agents. Therefore,
HPP
the hydroelectric resources of the National
Interconnected System (SIN) can be optimized, SHPP
assuring the cash generation foreseeability Wind
of the company’s assets. This is a relevant Farm
mechanism to mitigate the climate and water PPP
effects connected with electricity production.
SS
Sustainability journey
GRI 102-21, 102-40, 102-42, 102-43, 102-44, 102-46
Alupar’s culture always pursued the In 2021, the Company became a signatory
responsible use of resources. The Company of the United Nations (UN) Global Compact,
understands that the business-applied supporting the Ten Universal Principles and
sustainable development is a way of operating committed to the Sustainable Development
that does not deplete future resources. Goals (SDG). An external consulting firm drawn
This is a model in which economic growth, up the Company’s action plan to adopt the
environmental protection and social inclusion ESG (Environmental, Social and Governance)
are fine-tuned and balanced. Reinforcing criteria in its business model, which shall be
our commitment to this topic, in 2022, we implemented between 2022 and 2023. This
set up the Sustainability Committee. work, by the way, is a development of the first
initiative in 2019, when various issues to build
The first materiality matrix, including priority this agenda were diagnosed and mapped.
topics for the Company, considers the vision of
key stakeholders (public authorities, suppliers
and service providers, shareholders, investors,
independent board members, employees
and local communities). This is a relevant It is important to understand
tool to understand how stakeholders see the
how stakeholders perceive the
impacts and the Company’s management,
prioritizing topics to be discussed by leadership Company’s impacts for us to
and announced to society by means of prioritize the sustainability topics
public documents, such as this report. in our strategic agenda.
Materiality
aligned with
SDG
The material topics identified were co-related
with Sustainable Development Goals (SDG), the
global agenda adopted in 2015 by countries
participating in the United Nations (UN), with 17
objectives and 169 goals to be achieved by 2030.
We pursue a business
model in which economic
growth, environmental
protection and social
inclusion are fine-tuned
and balanced.
SDG
7, 8, 12, 13, 14, 15
Environmental
Material awareness SDG
topics
Maintain a list of 3, 8
environmental
activities for business
GRI 102-46, 102-47, 103-1 IMPACT success. Wellness and life
BOUNDARY quality
Inside and outside
Promote employee GRI
The materiality study the organization
wellness and life 401‑1, 401‑2, 401‑3,
conducted in 2020, identified GRI Biodiversity quality is connected 402‑1, 403‑1, 403‑2,
Specific indicator 403‑3, 403‑4, 403‑5,
five material topics, as follows. Manage key impacts to the Company value
of projects and create creation and results. 403‑6 403‑7, 403‑8,
mitigation programs. 403‑9, 403‑10, 404‑1,
SDG 404‑2, 404‑3, EU16,
13, 14, 15 EU 18, IF‑EU‑320
Waste ENVIRONMENTAL SOCIAL IMPACT BOUNDARY

Monitor our projects’ Inside the organization
IMPACT BOUNDARY
Inside and outside the appropriate waste disposal
organization and environmental
awareness actions for
GRI workers and communities
304-1, 304-2, 304-3, involved. SDG
304-4, EU 13
16
GOVERNANCE
SDG IMPACT BOUNDARY
6, 12 Inside and outside the
organization
Risk Manage risks that may
and crisis management significantly affect the Company GRI
and stakeholders, for instance, 102‑11, 205‑1, 205‑2,
IMPACT BOUNDARY dam failure, downed transmission 205‑3, 307‑1, 308‑1,
Inside and outside the line, auctions, amongst others. 308‑2, 403‑2, 403‑7,
organization 413‑1, 413‑2, EU 6,
GRI EU 8, EU 10, EU 12,
306-1, 306-2, 306-3, EU 21, EU 30, IF‑EU‑120,
306-4, 306-5 IF‑EU‑140, IF‑EU‑320
Corporate governance
Material topic
Risk and crisis management
With an eye on the future, Alupar pursues The path of excellence is only achieved if it
to consolidate the environmental, social and complies with ethics and transparency. For this
governance (ESG) criteria to its business model.
A continued advancement and development
reason, these values are reinforced along with
all employees, partners, and communities in Good practices
of good governance practices underline an which the Company operates. The Company
active participation in building a legacy for
today’s and future generations, meeting
adopts various policies to improve its
practices: Sustainability, relationship with
prioritization
society’s demands for a more sustainable world, community, integrity, corporate governance,
stakeholders’ expectations also adding value internal audit, human resources, occupational The corporate governance model is
for businesses and strategies perpetuity. health and safety, environment, anti-money grounded on ethical principles and
laundering and counter-terrorism financing. conduct standards to guide behavior
The Company’s shares are traded at B3 Level 2, of shareholders, board members,
the Brazilian stock exchange, based in the city of officers, leaders and employees.
São Paulo. In 2021, a few initiatives were adopted Therefore, Alupar achieves its mission,
that reflect corporate governance advance, such vision and values, necessary to
as: a reinforced release of the Code of Ethics, position the Company towards its
Conduct & Compliance among employees, the growth and value creation journey.
Compliance Day, the whistleblowing channel For additional information about
outsourcing, in 2022, to ensure records safety, the composition and responsibilities
the elaboration of a specific Code of Conduct of all governance bodies, access
for suppliers, an overall audit of information http://ri.alupar.com.br/ GRI 102-22
security systems (focused on Data Protection
General Law- LGPD), amongst others.
Planning Board of Directors Fiscal Council

and execution GRI 102-18
It outlines our businesses’ general guidelines Non-permanent corporate body, which
and policies. It is also under its responsibility, acts independently from the Company’s
The governance structure is composed of the oversight and monitoring of officers management and audit. The fiscal council’s
a Board of Directors, a Board of Executive activities, the selection of independent auditors, key responsibilities, with an one-year term of
Officers and five advisory committees, and the creation of committees, defining office, consist of oversighting the management’s
which support the Board of Directors. respective charters and competencies. activities, reviewing the financial statements
and reporting its conclusions to shareholders.
The composition of the Board of Directors Currently, there is no Fiscal Council installed.
is defined through elections at Shareholders
Meeting, and shall be composed of, at
least, seven and at most, ten members for a
renewable two-year term of office. GRI 102-26
Executive committees
Specific committees were set up to advise the
Board of Directors and governance bodies to
Board of Executive Officers provide strategic inputs in decision-making
It reports its activities directly to Alupar’s Board processes. All of these committees have their
of Directors and bylaws provide that it shall be charter and are subordinated to the Board of
composed of up to six members. This body’s Directors and Board of Executive Officers.
responsibility is to execute the strategic planning
defined by Board of Directors and efficiently apply Alupar has five executive committees:
the resources earmarked for each area. Alupar’s Governance, Succession and Compensation
current board of executive officers is composed Committee; Finance and Related
of three executives elected, with two-year Parties Engagement Committee, Audit
term of office, and re-election is authorized. Committee, Ethics Committee and
Sustainability Committee. GRI 102-20
Organizational chart
ALUPAR
99.90%
ETES 51% 51% V 50.02% 50.01%
T 50.02% 36.96%
50.99% Foz do Rio 100%
STN ETB TNE EATE EDTE ENTE APAETE
Claro
V 100%
50.10% 86.75%
60% T 86.66%
TME Ijuí
AETE
50.02% 100% Ferreira 100%
ECTE ETSE 38.02% 21.96%
61.55% 20% Gomes
V 50.02%
F 50.02% 100% 18.45% 68.83%
ETEP ESDE STC Queluz
15% 80%
62.79% 18.08% 61%
ETEM Lumitrans ERTE Lavrinhas
100% Energia dos 100%

ETVG
Ventos
100%
100% ESTE 99.97%
70.02% Risaralda
ELTE
(SHPP Morro Azul)
100% 51% 85%

ETAP Transminas EBTE Verde 8
Transmission
100% 41% 10% 84.58%
ETC Transleste La Virgem
Generation
65.70% 41% 10% 90%
TPE Transudeste Água Limpa
Under implementation
65.70% 41% 10% Agreste 100%
TCC Transirapé
TBE Assets* Potiguar
100% TCE 100%
PPP
(Colombia) Pitombeira
* TBE: consists of 12 transmissions companies:
65.70%
TSM
EATE, EBTE, ECTE, ENTE, ERTE, ESDE, ETEP, ETSE,
ILUMINTRANS, STC, ESTE and EDTE
Ownership
structure
Preferred shares Common Total shares
shares
282,155,299 596,955,970 879,111,269
+ =
99.41% 0.59%
280,479,115 1,676,184
23.46% 76.54%
140,050,337 456,905,633
47.84% 52.16%
420,529,452 458,581,817
Controlling shareholder Other shareholders

Ethics & integrity

GRI 102-16, 103-2, 103-3 |205
The dissemination of an ethical culture guides

the practices of transparency, integrity, respect
When all employees and members of the
management bodies join the Company, they
Solid Compliance
for laws and regulations in business and sign the code’s liability commitment. Reports
relationship with stakeholders. For cross-sectional of potential infringements to the Company’s In pursuit of a continued improvement Compliance in Colombia and Peru, countries
values, the Company adopts its Integrity Policy policies and prevailing laws are received by the of stakeholders relationship, a culture of where the Company operates, is under
and Code of Ethics, Conduct & Compliance (both whistleblowing channel, which as of 2022, will rely compliance is disseminated through training conclusion process, to be in conformity with
made available on the intranet and Investor on an independent support and will be available sessions, elaboration of policies, actions and laws of these countries. GRI 205-2
Relations website) to guide employees’ behavior, for all the Company’s internal and external use of communication channels available.
both in internal relations and with society. stakeholders. Seven reports were received in The first Compliance Day was held in 2021, Besides anticorruption policies (Integrity
2021, all of them were solved. All complaints which involved marketing actions, such as the Policy, anti-money laundering and prevention,
received via e-mail (can be sent anonymously) “cãopliance” mascot to improve this area’s Code of Ethics, Conduct & Compliance), the
are verified by Compliance area. GRI 103-2 policies and initiatives. Company relies on the support of a specialized
advisory firm to monitor all the Integrity
In 2021, the suppliers Code of Conduct was Program’s activities, in line with the best
elaborated to step up clauses relating to market practices. Alupar’s 40 operations were
the hiring outsourced workers, social and assessed in 2021, and none of them recorded
environmental responsibility. Therefore, any case of corruption in the period. In 2021,
Information security this document assists the Company in the

compliance with rules, and agreement
100% of employees received anticorruption
notices. GRI 205-1, 205-2
termination, if this is the case. All Alupar’s
The Company is in its final phase of adjusting its processes agreements include an anticorruption clause, In April 2022, Alupar’s Board of Directors
to conform with Data Protection General Law (LGPD). The and over the past years, the Company has resolved to install an Ethics, Conduct &
personal data privacy-related events shall be directed to invested in anti-money laundering policies. Compliance Committee, a non-statutory
an exclusive channel, for analyses and discussions with There is a risk matrix envisaging corruption, committee of the Company, as well as its
data protection officer (DPO), under legal requirements. managed by Compliance Officer, who is charter.
subordinated to the Board of Directors.
Risks and crisis management

GRI 102-11,103-2, 103-3 | 207
Ethics management is essential to mitigate The main social and environmental impacts
various risks that may jeopardize business take place during project installation phase, for
continuity and value chain. Thus, the Company instance, the vegetation removal, soil movement,
seeks to reinforce its corporate governance the execution of civil works, amongst others.
structures, map and manage operational Therefore, a multidisciplinary team studies
and procedural risks, besides establishing mitigation plans a set of impact mitigation
an Audit Committee. This management is plans by carrying out social and environmental
monitored by Board of Directors, Board programs (to protect local fauna and flora)
of Executive Officers and shareholders. and social initiatives to support neighboring
communities. Environmental studies also enable
All the projects phases are guided by the drawing up action plans for each location.
precautionary principle, including preliminary Alupar holds its Environmental Policy to high
studies to find the best social and environmental grounds of requirement and makes it available
alternatives, respecting the communities to all employees on the company´s intranet.
located in areas covered by projects. During
planning phase, a specialized team analyzes
each activity to mitigate possible impacts during
implementation and operation. Activities are
registered in monitoring reports and forwarded
to the appropriate environmental authority.
We have a multidisciplinary team who manages impact
mitigation plans through social and environmental
programs, from fauna and flora protection
to local communities support.
Contingency planning measures, management, disaster, emergency plans, training

programs and recovery/restoration plans EU21
Mapped risk - Dam structural accidents
The Emergency Action Plan (PAE) composes the Dam Safety Plan, which includes guidelines and definitions for
In-house emergency plan internal and external stakeholders. PAE is in charge of laying down procedures and documentation to identify
dams safety level.
PAE includes early alert definitions through communication of agents heading the operation and dam safety for
External emergency plan - PAE
internal and external agents, as well as the population located in the Self-Rescue Zone (ZAS).
Simulation exercises and population’s awareness actions, in regions located in the Self-Rescue Zone (ZAS), shall
be executed by local governments and/or Civil Defense bodies. Alupar conveyed and filed all the information
Emergency plan simulation
relating to eventual emergency situations, necessary so that appropriate authorities could plan and execute the
simulation exercises. We have not carried out any simulation yet.
Third party’s approval Filed at local governments and Civil Defense, they do not require bodies’ approval.
The assessment of emergency plans reliability, in the lack of actual crisis event, is obtained through a system
composed of complexity ascending order:
Employees and outsourced workers training a) Notification and alert systems test;
program in situations of emergency and
b) In-house exercise: executed at dam’s meeting room or appropriate internal area for training;
application of contingency plan
c) Simulation exercise.
Plans jointly with Civil Defense shall define the frequency of exercises suggested.
Compensations and other assistances due to The magnitude of impacts varies and requires a specific study for each case, impacting definitions of
resettlement. compensations and other assistances to be executed.
Assets’ dam safety plans are in common agreement with federal law No. 14.066/2020, concerning the Dams
Plan adhesion to appropriate authorities Safety National Policy. Laws set out the procedures to prevent the occurrence and/or minimize the damages
requirements and/or code of good practices caused in reservoirs and surrounding areas, stemming from critical situations that may occur due to hydrologic
risks or dam failure.
Value
CONNECTIONS
chain
Efficient relations
Financial performance
Efficient relations
Alupar concentrates its activities in projects The maintenance and operation engineering
through strategic partnerships with companies teams continuously monitor the best
renowned by their technical and financial technologies available in the market. We can
expertise to make feasible small and large-sized highlight two projects in 2021: the construction
projects for the sector. All transmission and of a rainfall forecast computational tool
substation lines started their operations as and a new methodology that measures
of 2002 and, generation units, in 2010. In the atmospheric discharges. EU6, EU8
transmission segment, the Company holds
concession of 30 systems, with 7,928.5 km line In 2021, the I-REC (Renewable Energy Certificate)
extension: 6,973.5 km operational and 955 km was issued for SHPP Verde 08, in the city of
under implementation. The concession period is Turvelândia (GO), which allows building a
30 years in Brazil and perpetual in Colombia. EU4 relationship between generation companies
and end consumers interested in renewable
Currently, the Company owns the control of all energy sources, besides fomenting these
assets (except for TNE transmission company). projects development. Each I-REC corresponds
In 2021, a software was implemented to monitor to 1 MWh of energy. The SHPP Verde 08,
all the assets in real time, the BI (Business authorized to issue I-RECs since 2020, with
Intelligence) tool as a way of expanding physical guarantee of average 18.7 MW (average
information spectrum. Engineering technological 18.2 MW, including losses), can issue until
alternatives under project implementation phase 157,680 RECs. In turn, EAP I and II projects,
have been built, such as the use of drones when under phase of implementation, expect to
Alupar has 124.7 MW electricity capacity under
launching cables, thus, reducing the quantity of issue I-RECs upon their commercial startup.
implementation, 63 MW of wind energy and 61.7 suppressed areas.
MWp of solar energy. Also, Alupar has According to the electricity sector regulatory
23 MW under licensing phase EU10 framework, the Company invests 1% of its
Net Operating Revenue (NOR) in research
& development programs (R&D). EU8
Operations partners
Extension of transmission lines (km) per Voltage (kV) Alupar Generation Companies
Company 230 kV 345 kV 500 kV Company 230 kV 345 kV 500 kV Company Begin Operations Installed capacity (MW)
ETEM 235 ETES 107 HPP - Foz do Rio Claro Aug/2010 68.4
ECTE 252 TME 348 HPP – São José – Ijuí Mar/2011 51
ETSE ETVG
SHPP – Queluz Aug/2011 30
ETEP 323 TNE* 715
SHPP – Lavrinhas Sep/2011 30
ESDE ELTE* 40
HPP – Ferreira Gomes Nov/2014 252
EATE 924 ETAP 20
Wind power – Energia dos Ventos Mar/2016 98.7
ERTE 179 ETC
ENTE 464 TPE SHPP – Morro Azul Sep/2016 19.9

541
EBTE 775 TCC 288 SHPP – Verde 08 May/2018 30
STN 541 ESTE 236 HPP – La Virgen May/2021 93.8
Transleste 150 TCE 200 SHPP - Água Limpa Pre-operational 23

Transirapé 65 TSM 330 Eólico Agreste Potiguar – AW Santa Régia Pre-operational 37.8
Transudeste 140 ETB 446
Eólico Agreste Potiguar – AW São João Pre-operational 25.2
STC 195 EDTE 170
PPP – Pitombeira (Solar energy) Pre-operational 61.711
Lumitrans 51 AETE 193
Total 821.5
1,809 290 5,829
1 MWp: megawatt-peak
Total 7,928
* under construction
Energy from North to the ESTE transmission company Plant’s average availability factor, broken down by source of
Southeast region of the country commercial startup energy and regulatory system¹ EU30
At the end of 2021, Alupar eight months in On 02/18/2022 the subsidiary ESTE (Energy Generation Planned downtime Not planned
advance delivered the implementation of the Transmission Southeast Company) obtained Source
availability hours downtime hours
500 kV-transmission line Fernão Dias – Rio the Revenue Release Statement – TLR, which
Hydro power - HPPs
Terminal, with 330 km extension. This project authorizes to receive revenue as of 02/09/2022. (hydroelectric power plants)
0.9148 995.47 247.44
crosses 27 municipalities (22 in the state With ONS’ authorization, a RAP of R$123.6
of São Paulo and five in the state of Rio de million will be added to the 2021-2022 cycle. Hydro power - SHPPs (small
0.8951 2,125.45 5,753.17
hydroelectric power plants)
Janeiro), it meets the reinforcements necessary
for the Southeast region, enabling to receive ESTE is a project located in the states of Minas Wind power 0.9687 2,152.56 9,249.69
energy surplus from the North region. The Gerais and Espírito Santo. This project consists of
¹ Availabilities below 90% are due to non-recurring events of large-sized scheduled maintenances jointly with corrective actions.
work is authorized by the Electric System the implementation of a 500 kV-transmission line
National Operator (ONS). This project enabled Mesquita – João Neiva 2, with 236 km extension
to issue R$530 million green debentures. and substation João Neiva 2 - 500/345 kV.
Evidencing our commitment to sustainable development,

we raised R$530 million green debentures In the generation segment, our energy
to finance the construction of a transmission line with derives from renewable sources, such as
330 km extension in the Southeast region hydro, wind and photovoltaic power
Suppliers
GRI 102-9, 103-2, 103-3 |308
In 2021, the Company issued a specific In 2021, 1,637 suppliers were contracted.
Code of Conduct for suppliers to improve Before contracting, strategic suppliers undergo
clauses related to outsourced workers’ hiring, a documentation analysis process (legal, tax,
social and environmental responsibility. The environment, financial and complianceaspects).
Company’s main partners are located in the
Southeast and South regions of the country, As far as environmental issues are concerned,
as the sector is very specific and technical. In regular status certificates are analyzed and
cases of works support services, the Company projects references are concluded, besides
prioritizes the hiring of local labor, as a including an environmental exhibit to the
way of fomenting the region’s economy. agreement containing all the guidelines
and recommendations for ecologic control
Alupar’s supply chain is composed of companies and preservation, as well as a specific
providing substation equipment (transformers, clause on child and slave labor.
reactors, circuit breakers, lightning rods
and cables) and transmission line materials
(aluminum cables, insulators, dampers and
metal structures), as well as civil works
contractors, elaboration, project certification,
substations assembly and transmission lines.
Financial performance
GRI 103-2, 103-3 |201
Alupar’s sustainable growth is guided by analysis of financial implications related to

participation in auctions for transmission and these events will be discussed in the ESG
generation assets, energy generation project plan, under development. GRI 201-2
development (SHPPs, wind and photovoltaic
power plants), participation in transmission The Company ended 2021 with a net
bids in selected Latin American countries, as revenue of R$5.23 billion and an Ebitda of
well as analysis of brownfield projects . The R$3.92 billion. Net income totaled R$1.12
Company considers certain climate risks in billion, versus R$942.1 million in 2020. Check
its business, however management and the list of entities covered in the financial
statements in the Exhibit hereto. GRI 102-45
Gross revenue
Net income totaled R$1.12 billion, versus R$942.1 million in 2020.
2020 2021
R$ 942.1 R$ 1.12
million billion
Direct economic value generated (in thousands of Reais) GRI 201-1
2020 2021
Revenue 6,929,663 6,265,206
Economic value retained (in thousands of Reais) GRI 201-1
2020 2021
“Direct economic value generated” less “Economic value distributed” 1,809,354 1,762,380
Economic value distributed (in thousands of Reais) GRI 201-1
Distributed 2020 2021

Operating expenses 2,377,038 1,391,664
Employees’ salaries and benefits 194,013 189,120
Payments to capital providers 1,089,181 1,593,939
Payments to the government 1,453,267 1,322,574
Investments in community 6,810 5,529
Total 5,120,309 4,502,826
Economic value distributed (%) GRI 201-1
2020 2021
Operating expenses 46.42 30.91
Employees’ salaries and benefits 3.79 4.20
Payments to capital providers 21.27 35.40
Payments to the government 28.38 29.37
Investments in community 0.13 0.12
Total 100 100

Consolidated Ebitda Generation

In 2021, earnings before income tax, financial The Ebitda (deriving from our energy generation
result, depreciation and amortization system) surged 39.9%, from R$364.8 million in
(EBITDA) came to R$3,919.6 million, 2020 to R$510.3 million in 2021, fueled by (i)
13.5% higher than in previous year. higher volume and average price of MWh traded
in the free market and (ii) lower operating
expenses due to accounting for grant extension.
Transmission
The Ebitda deriving from out energy transmission

system increased 9.6%, from
R$3,152.9 million in 2020 to R$3,454.8
million in 2021, mainly driven by concession
asset higher financial yield on the back of
commercial startup of ETB, TCC and TPE.
In the energy generation segment, Ebitda increased

39.9% in 2021 versus previous year due to higher
volume and average price of MWh traded in the free
market and lower operating expenses, on the back of
accounting for grant extension.
Financial result Indebtedness
Net financial result went from a financial The Company and its subsidiaries ended 2021 Capital market
performance
expense of R$461.7 million in 2020 to R$915.5 with a net debt of R$7,995.5 million, 17.7%
million in 2021, due to the following factors: higher than previous year. Such increase is
related to our current flow of investments.
Financial expenses increased from Our consolidated leverage (net debt/EBITDA),
R$513.1 million in 2020 to R$1,023.4 million on December 31, 2021, reached 2.0 x. Units are traded on B3 under the ticker ALUP11
in 2021, mainly driven by debt higher and are composed of one common share and
interest rates due to the commercial startup two preferred shares (1 UNIT = 1 ON + 2 PN).
of transmission companies TPE, ETB and At all trading sessions held in 2021, Alupar’s
TCC, totaling R$436 million (previously Net income for the year Units recorded an average daily trading volume
these charges were capitalized in these of R$22.2 million. Units ended 2021 quoted at
companies’ contractual assets) and higher In 2021, net income for the year (excluding R$24.10, an 8.1% depreciation compared to 2020.
IPCA (extended consumer price index) in non-controlling shareholders) totaled During the same period, the Electric Energy Index
2021 (4.51% accumulated in December 2020 R$1,115.4 million, compared to R$942.1 (IEE) depreciated by 7.9%. On December 31,
and 10.06% accumulated in December 2021). million in 2020, explained by various 2021, Alupar’s market cap totaled R$7.1 billion.
This index is adopted to update loans of factors already mentioned above.
several Alupar’s transmission companies.
Financial income went from R$51.3 million

in 2020 to R$107.8 million in 2021, driven
by higher average rate of interbank deposits
(CDI) that recorded 4.42% in 2021, versus
2.75% in 2020; the accounting of R$18.4
million in SHPPs Queluz and Lavrinhas, due
to interest rates and monetary restatement
over trade accounts receivable, referring to
the balance of outstanding invoices in 2021.
Investments
In 2021, total investments came to R$1,165.2 in 2021 mainly reflects the implementation of
million, R$1,024.1 million in the transmission transmission assets, namely: TSM, ESTE, TCC,
segment, R$138.4 million in the generation TCE and ELTE; and, generation assets, such as
segment, and R$2.7 million in new business the wind power plant, Agreste Potiguar and
development. The volume of investments made the hydroelectric power plant, HPP La Virgen.
Value-Added Statement (%)

2020 2021
Shareholders 5.41 7.40
Employees (employee remuneration and benefits) 3.76 3.31
Government 32.42 27.71
Retained earnings 39.74 36.16
Debt capital remuneration 18.52 25.31
Investments in community 0.15 0.11
Value-added statement –summarized (in thousands of Reais)

2020 2021
Revenue 6,851,546 6,138,327
Inputs acquired from third parties 2,241,166 1,251,147
Gross value-added 4,610,380 4,887,180
Retentions 135,872 140,517
Net value-added produced by the organization 4,474,508 4,746,663
Value-added received in transfer 78,117 126,879
Total value-added to distribute 4,552,625 4,873,542

Value-added statement (in thousands of Reais)

2020 2021
Revenue 6,851,546 6,138,327
Sale of goods, products and services 6,745,065 5,803,199
Non-operational 106,481 335,128
Inputs acquired from third parties (including ICMS -State VAT

2,241,166 1,251,147
and IPI - excise tax)
Cost of goods sold and services provided 2,083,859 1,142,239
Materials, energy, outsourced services and others 157,307 108,908
Gross acquired value 4,610,380 4,887,180
Retentions 135,872 140,517
Depreciation, amortization and depletion 135,872 140,517

Revenue by country (in thousands of Reais) Net value-added produced by the organization 4,474,508 4,746,663
Value-added received in transfer 78,117 126,879

Country/region 2020 2021 Equity pick up of subsidiaries (9,224) (5,255)
Brazil 6,113,188 5,166,664 Financial income 87,341 121,624
Colombia 27,557 38,087 Total value-added to distribute 4,552,625 4,873,542
Peru - 29,457 Distribution of value-added 4,552,625 4,873,542
Personnel and charges 171,154 161,305
Taxes, fees and contributions 1,476,126 1,350,389

Costs by country (in thousands of Reais) Debt capital remuneration 843,030 1,233,503
Equity capital remuneration 246,151 360,436

Country/region 2020 2021
Retained earnings 1,809,354 1,762,380
Brazil 2,689,664 1,367,605
Investments in community 6,810 5,529
Colombia 9,891 12,686
Peru - 19,335
Care for
TEAM
people
Alupar Team
Occupational health and safety
Alupar Team
GRI 102-8, 103-2, 103-3 | 401| 402| 404
Material topic
Wellness and life quality
A company’s success is also a result of people The Company ended 2021 with 719 employees,
and their talents. Therefore, Alupar believes mostly concentrated in the Southeast region.
that united and productive teams mean the Care for people is also reflected in the package
extension of a fine-tuned corporate environment, of benefits offered, such as: healthcare and dental
wellness, employees’ engagement and leadership plans, life insurance, meal and/or food ticket,
in the company’s culture dissemination. private pension plan, amongst others. GRI 401-2
Thus, the Company relies on Recruiting and
Selection, Career & Remuneration Policies, To stimulate employees’ professional
Benefits, Occupational Safety and goals to development, the Company invests in training
sustain employees’ satisfaction level. sessions (accessed via online platform, with
evaluation at the end) – average stood at
The “Alupar’s way of being” was again 13.23 hours per employee – educational
recognized in 2021 by the award “Lugares programs, as well as a distance education
incríveis para trabalhar” (Amazing places platform with training focused on personal
to work for), an initiative of UOL portal and development, business and leadership.
Management Foundation Institute (FIA) that Twice a year, Alupar offers scholarships
awards the companies’ people management (graduate studies and English courses)
The Company invests in on-site and distance training, best practices. Two requisites required by the paying 50% of tuition fees. GRI 404-1, 404-2
and offers scholarships to foment employees’ award were met: employees’ survey participation
percentage with 89% of adhesion, andthe
professional development. achievement of the organizational climate
index (i-CO) equal or higher than 75 points.
Recognize talents
Alupar seeks to attract market professionals, development, an annual evaluation is Employees by type of employment agreement and gender GRI 102-8
but also aims at retaining and recruiting conducted, composed of three phases:
the Company’s internal talents. Therefore, evaluation, head’s evaluation and manager’s 2020 2021
the Company values its team and reduces feedback. In 2021, 94.85% of professionals
Men Women Total Men Women Total
turnover indexes. To foment employees’ received performance analysis. GRI 404-3
Permanent
523 146 669 563 156 719
employees
Temporary workers 47 1 48 0 0 0
Total 570 147 717 563 156 719
Employees by type of employment agreement and region¹ GRI 102-8
2020 2021
Region Permanent Temporary Permanent Temporary
Total Total
employees workers employees workers
Brazil 669 48 717 719 0 719
¹ From the next year, the regions of Colombia and Peru will also be reported.
Employees by type of employment GRI 102-8
Type of 2020 2021

employment Men Women Total Men Women Total
Full-time
561 156 717 559 156 715
employment
Part-time
0 0 0 4 0 4
employment
Total 561 156 717 563 156 719

Employees by age group GRI 102-8 Employees by employee category and gender¹ GRI 102-8
2021
2020 2021
Under 30 years old 83
Men Women Total Men Women Total
30-50 years old 522
Chief Executive
1 0 1
Over 50 years old 114 Officer
Total 719 Vice Chief

1 0 1
Executive Officer
¹ In 2020, a different employee category was
adopted, also including the chief executive officer, Officer 13 0 13
vice chief executive officer and officer.
Controller 1 0 1 3 0 3
Manager 18 9 27 19 8 27
Governance bodies individuals¹
Coordinator/
GRI 102-8 Supervisor/ 35 16 51 41 19 60
Specialist
2020 2021 Auxiliary services 14 18 32 24 11 35
Governance bodies Administrative/
7 7
members Technical- 493 113 606 460 119 579
Operational
¹ The number of governance bodies refers to the Board of
Directors of holding Alupar (sitting members), in December Total 561 156 717 562 157 719
of respective year. Each Group SPE has its board, and
information is internally managed by each one. ¹ In 2020 a different employee category was adopted, also including the chief executive officer, vice chief executive
officer and officer.
Diversity incentive Employees’ new hires and turnover GRI 401-1
The Company believes that employees’ Employees by age group – 2021 GRI 401-1
individuality adds different viewpoints, also
contributes to business competitiveness, as Total Hires Dismissals Turnover
well as reflects the country’s social diversity and
Under 30 years old 83 36 19 0.33
collaborates to overcome social inequalities.
Therefore, an advisory firm was engaged in 30-50 years old 522 65 80 0.15
2021, to develop the Diversity & Inclusion Over 50 years old 114 12 13 0.11
Program, aiming at building a more inclusive,
Total 719 113 112 0.16
fair and equal Company. Since 2016, Alupar
has been relying on the Gender & Race Pro-
Equity seal, granted by federal government.
In line with SDG 5 (equal gender), Alupar Employees by gender – 2021 GRI 401-1
undertook to promote women to leadership
positions, which currently is reflected as Total Hires Dismissals Turnover
follows: managers (eight women and 19
Men 563 82 86 0.15
men); coordinator, supervisor, specialist
(19 women and 41 men); controller (no Women 156 31 26 0.18
women and three men) and a deputy board Total 719 113 112 0.16
member at the Board of Directors.
Footnote: Turnover calculation methodology: [(hired + dismissed employees)/2]/total headcount. As Alupar,
is only reporting Brazil region this year, total turnover corresponds to turnover by region.
Maternity/paternity leave GRI 401-3
2021
Men Women
Employees entitled to leave 563 156
Employees under leave 12 4
Employees who returned to work, during reporting period, after

12 71
the end of leave
Employees who returned to work after leave and continued

6 6
employed 12 months after returning to work
Return rate 1 1
Retention rate 1 1
1.Data include employees under maternity leave in 2020 who returned to work in 2021.
In 2021, we engaged an advisory firm to

develop a Diversity & Inclusion Program,
aiming at building a more include, fair
and equal Company
Occupational health
and safety GRI 103-2, 103-3, 403-2
The Company values people’s safety, which Employees are guided to report hazard
is guided by various practices that ensure a situations in operations and can refuse to
safe workplace for employees and outsourced execute any activity should they identify
workers. The Occupational Health and Safety any risk or they do not feel safe to execute
Policy outlines the criteria to take care of people’s the task. Areas are consulted as to work
physical integrity, while the Occupational Health procedures and monthly meetings at units
and Safety Management System promotes a are held to discuss occupational safety.
continued improvement of processes. GRI 403-1 Results on leaves and illness are monitored
by indicators, also risk prevention measures
The Company also manages occupational are adopted in activities. In 2021, neither
risks to identify sensitive points and execute occupational accident nor work-related illness
improvement actions. Various procedures are was recorded. GRI 403-4, 403-7, 403-9, 403-10
adopted to ensure people’s safety, such as:
personal or collective protection equipment;
monitoring programs, environmental risk control,
training sessions and safety inspections, training
of work at height, in confined spaces, facilities
safety and electricity services. GRI 403-5
Covid-19
Prevention
Due to a lingering pandemic, Alupar
All services agreements include clauses to heightened its prevention actions and
ensure the compliance with the Company’s disclosure of information along with
guidelines, as well as regulatory rules and laws employees, by distributing hand sanitizer,
prevailing in the country. On the back of the hygiene kits, PPE (Personal Protection
pandemic, a few training sessions took place Equipment), masks, mental health support
hybrid (online and on-site) in 2021. EU16 lectures and lives with infectologist.
A specialized company conducts the occupational The Company set up a Safety Committee for
health management, carrying out health checks a safe return to work, in the city of São Paulo.
once a year, guiding employees on their health The remote work was implemented 2x3 in
condition and the adoption of healthier life the second half of 2021– two days at home,
habits – 100% of employees are included in an three days at the office, at the end of 2021,
occupational health and safety management 40% of employees were working from home
system. The Company is involved in awareness and 60% at the headquarters (employees
initiatives about breast cancer prevention and underwent weekly quick testing). Acrylic
early diagnosis (Rose October), prostate (Blue barriers were installed at meeting rooms
November) and influenza vaccination campaigns and prevention practices (use of mask, social
across all units. GRI 403-3, 403-6, 403-8 distancing, etc.) are continuously reinforced.
Relationship with
communities GRI 103-2, 103-3 |413|413-1
Alupar has a sense of ownership in the Social responsibility investments are allocated
communities in which it operates, as it according to each region’s needs, such as:
believes that companies are responsible
for building a legacy for current and future
generations. The respect for history and In Bahia semi-arid communities, without
opinion of communities and all stakeholders access to quality water, the Company since
are essential in this relationship. Every time a 2020 has been supporting the Aqualuz
project feasibility analysis is conducted, the Project: an equipment (Aqualuz) that
Company carries out a social and environmental purifies water through sun rays, improving
diagnosis, enabling to identify the location’s water condition for consumption, health
hardships and potentialities. EU 19 and well-being of 173 households
benefited with this project. In 2021,
Based on this diagnosis, social communication, this equipment was monitored.
environmental education and training actions
are developed, which contribute to local In certain municipalities of Bahia,
development. There is a dialogue channel social and environmental mitigation
through Social Communication Programs (PCS), and compensation programs were
an important tool to exchange information implemented at Quilombola communities.
between the company and community,
ensuring the transparency of collective interest In the city of Umburanas (BA), seven
information. During transmission assets families of Cravadas community received
construction phase, we provide qualified the implementation of dry toilet social
professionals to monitor communities and technology (including waste treatment),
provide the support necessary. The same applies avoiding diseases due to the lack of
to generation companies, hydroelectric dams sanitary conditions in the city.
are oversighted, stringent safety standards
are observed and emergency action plans
are adopted to protect people. GRI 413-2
The Social Investment Plan (PIS) Social Investment Plan (PIS) of HPP Ferreira
of transmission company Serra da Gomes (AP) is composed of four pillars: 1.
Mantiqueira TSM, which includes: social and cultural actions integrated to
sustainable tourism; 2. community tourism; 3.
Donation of
small-scale fishing support and 4. incentivized
50 containers funding support. In 2021, we highlight:
operating as Voluntary Delivery
Stations (PEV) of materials
destined to recycling or local Training of artisans of “Casa de
cooperative, in the cities of Lorena Costura Quilombola” and the Group of
(SP), Piraí and Paracambi (RJ). Artisans “Mãos de Fada”, with a focus
on pricing and sale techniques.
Artisan Support Program in

This unit organized and financed
Monteiro Lobato (SP)
the Ferreira Gomes fair of arts and
Continued training of local craftwork, to foment the trade of items
artisans (community assets) and produced by artisans of associations
the development of a digital supported by the Company.
sale platform jointly with digital
marketing actions to result
in higher craftwork sales.
15 thousand people
benefited by TSM actions
Qualification of 333 individuals,
120 public school students
benefited and 29 events held
discussing the Mental Health topic.
The “Vencedores” (Winners) Project, by OBI ulture Incentive Law: Social Action for
C
Institute, in the city of São Sebastião (SP): Music, Fernanda Bianchini Association of Ballet
Alupar supports this project concerned for the Blind, São Paulo Biennial Foundation,
with children, adolescents and young Demócrito Rocha Foundation, Relicário Cultural
people social inclusion through sports, and Editorial Productions (Menino Deus).
environmental and educational activities,
including people with disabilities and Autism ports Incentive Law: Sports Institute,
S
Spectrum Disorder (ASD). Rugby Brazilian Confederation, Baureri
Volleyball Club, Tennis Institute.
Through projects connected to the Tax
Incentive Law, communities are also provided lderly Support Fund: Barretos Elderly
E
with reading, culture, education and sports Municipal Fund, Terra Arcoverde Foundation.
actions, training centers maintenance
and support. In 2021, R$2.7 million were RONON (Oncologic Support
P
invested to support various institutions: National Program): Santa Casa de
Misericórdia Fellowship, in Marília.
RONAS (PwD Support National

P
Program): Integrative Medicine Institute
Prof. Fernando Figueira (IMIP).
unicipal Fund of Children and Adolescents

M
Rights (FUMCAD): Santa Fé Association, OBI
Institute, Verdescola Institute, Pequeno Príncipe
Hospital; Municipal Fund of Children and
In 2021, the Company invested R$2.7 Adolescents Rights of Ferraz de Vasconcelos –
million in tax incentives to support various Philanthropic and Missionary Work and Social
Welfare Betânia Lar da Criança; Municipal
social institutions throughout the country. Fund of Children and Adolescents Rights of
Manduri (José Luiz G. Pereira) – Community
Center of Manduri José Luiz Muller de
Godoy Pereira “Sol do Amanhã” Project.
Together in the fight against These are various fronts: school, environmental
the pandemic campaigns, actions to fight against the pandemic,
amongst others. In Colombia, the subsidiary
Alupar holds concessions of long-term electricity TCE also supports communities affected by
generation and transmission assets, maintaining the project. In partnership with Uniminuto
a permanent relationship with neighboring University, in Colombia, we created the Nueva
communities. In 2021, the Company remained Esperanza Museum that shelters a 500 B.C.
committed to fight against the Covid-19 archeologic asset (16 tons of material), found
pandemic, by distributing staple baskets, hand in the Andes Mountains, during TCE works.
sanitizers, hygiene kits, PPE (Personal Protection
Equipment) and masks. Staple baskets were
also delivered for Bahia municipalities that
struggled with floods caused by heavy rainfalls We monitor the impacts
in 2021. Overall, the Company donated 242 tons on communities
of food in different campaigns during 2021.
Monitoring actions of social impacts on plants
In earlier 2022, a marketplace was launched are centralized in the Social Communication
in the city of Monteiro Lobato (SP), along Program and Environmental Education Program,
with artisans for local craftwork promotion commitments in charge of implementation
and e-commerce, affected by the pandemic. and operation of companies ombudsman
This project envisaged entrepreneurship channel (Contact Us). These actions
training, income generation and procedures monitor complaints, and other requests of
to create an association concerned population directly affected by our assets.
with local artisans’ development.
Communication channels are continuously
promoted, and contacts received are analyzed
and are an input for environmental education
actions planned and conducted in the region.
Projects in Latin America
Through subsidiary La Virgen, Alupar invests

in social actions in Peru, along with population
living in the project’s direct area of influence.
Operations with significant actual and potential negative impacts on local communities¹ GRI 413-2
Operation location Impact location Description of significant actual and potential negative impacts of operations in this location
Intensity or severity: Low risk and high associated potential damage

1 HPP Ferreira Gomes
(Araguarinas river, in Ferreira Gomes – AP)
10 km away from dam downstream, condition is valid for the worst
scenario identified in probability simulations.
Scale: Class B

2 SHPP Queluz
(Paraíba do Sul river, in Queluz – SP)
Scale: Class B

3 HPP São José
(Ijuí river, in Salvador das Missões- RS)
Scale: Class B
Intensity or severity: Low risk and low associated potential damage

4 HPP JLMGP
(Rio Claro, between Caçu and São Simão- GO)
Scale: Class C

5 SHPP Lavrinhas
(Paraíba do Sul river basin, in Lavrinhas-SP)
Scale: Class B

6 SHPP Verde 08
(Rio Verde or Verdão, in Santa Helena de Goiás- GO)
Scale: Class B
No survey was conducted, under phase of

Intensity or severity:
environmental licensing.
7 SHPP Antônio Dias
(Piracicaba river, in Antônio Dias-MG)
Scale: To define
¹ Out of 36 operating units (excluding TNE, ESTE, ELTE, TCE, EAP and PPP), 100% of them rely on environmental, social impact assessments, monitoring and local development programs
based on communities’ needs. These studies are not public.
ENVIRONMENT
Care for the

planet
Environmental Management
Biodiversity
Emissions
Energy
Water and effluents
Waste
Environmental Management
Material topic
Environmental awareness,
biodiversity, waste
Alupar believes that future can be more Each work has specific characteristics
efficient, sustainable and driven by renewable which are observed and analyzed in
energies. Growth is in line with technological Environmental Studies, thus ensuring a
transformation focused on avoided greenhouse more efficient action plan for each site.
gas (GHG) emissions, aiming at collaborating
to diminish higher temperatures on earth. This analysis enables to advance preservation
and recovery initiatives of protected
In this regard, the Company monitors the areas, native vegetation, fauna and flora,
global trends signaling that the renewable maintain water source quality, amongst
energies are in the core of energy transition other environmental actions directed to
to a sustainable future. This thesis is bolstered the Conservation Units maintenance.
by a recent study of the Energy International
Agency, foreseeing that the percentage of Over 3,806 hectares of Permanent
renewable energy in the global electricity sector Preservation Area (APP) are preserved in
will jump from current 25% to 85% by 2050. our operational hydroelectric projects.
As the Company is present in 14 Brazilian

states– also in Peru and Colombia – Alupar’s
Environment Policy is in line with prevailing
environmental laws. From implementation to
operation, all our environmental licenses are
related to environmental education programs.
Biodiversity
GRI 103-2, 103-3 | 304
Each Alupar’s project has unique characteristics in which

biodiversity is respected through Environmental Studies, to
build a more efficient action plan for each site.
A commitment to protect biodiversity Within the conservation projects maintained by

composes Alupar’s entire project, Alupar, such as the endangered bird Nemosia
before or after its implementation. No rourei Conservation Program, two nests were
transmission or administration unit is discovered in the remnants of the Atlantic
located in a protected area, and energy Forest, in the Capixaba region. This project
transmission works primarily comprise involves various researchers and composes
areas already modified by human action. the environmental actions relating to the
implementation of TCC project, including the
In the event interference in sensitive regions, states of Minas Gerais e Espírito Santo and
or preservation, and environmental relevance near the ecologic corridor Pedra Azul-Forno
is required, Alupar makes feasible works along Grande. Alupar also monitors other 49 species
with environmental authorities in compliance composing the red list of the International
with requirements, also adopting measures of Union for the Conservation of Nature (IUCN),
impact control and mitigation. Under these at different extinction risk levels, in other
circumstances, Alupar receives the assistance operational regions. Overall, Alupar has 54
of specialized advisory firms in ecologic km2 of habitats compensated in forest areas, at
and degraded areas restoration projects. different regeneration stages GRI 304-4, EU13
The biodiversity protection covers various

programs (below) and each one’s initiatives are
broken down in the Environmental Basic Plan (PBA):
Environmental Environmental
Programs Compensation Plan
Permanent Preservation
and Reforestation Area Monitoring and Control
Protection Program of Erosive Processes
Degraded Areas Environmental Education

Recovery Program and Social Communication Major impacts refer to the accesses opening and vegetation
removal; earth movement and ground excavation; noise,
heavy equipment movement, as well as changes in the water
cycle of hydroelectric projects. For all of these, Alupar has
Fauna & Flora Monitoring Environmental Actions a specific management involving specialist teams, areas
and Management Management recovery, monitoring and natural barriers containment
measures GRI 304-2.
In 2021, the Company sponsored the

publication of the book “Aves de São Francisco
Xavier”, in the Mantiqueira Mountain
Range, where the TSM – Transmissora Serra
Mantiqueira S.A. project is located.
Proprietary, leased or managed operating units, inside or nearby environmental protection areas¹ GRI 304-1
Proprietary, leased or managed

Operating unit size
Name of the Area Geographic Location surface and underground areas of the
in km²
organization
Salvador das Missões, Rolador

HPP São José 37.96 km² 0.1 km²
and Cerro Largo (RS)
Energia dos Ventos I, II, III, IV

Aracati (CE) 11.38 km² 11.38 km²
and X
HPP Engenheiro José Luiz Muller

Caçu and São Simão (GO) 12.85 km² 0.1 km²
Godoy Pereira
HPP Ferreira Gomes Ferreira Gomes (AP) 31.43 km² 0.5 km²
Santa Helena de Goiás, Acreúna

SHPP Verde 08 12.9 km² 0.1 km²
and Turvelândia (GO)
Lavrinhas and Paraíba Valley

SHPP LAVRINHAS 1.6 km² 0.1 km²
(SP)
SHPP Queluz Queluz and Paraíba Valley (SP) 4.33 km² 0.1 km²
¹ All operations are related to the production of industrial energy and are located in permanent preservation areas (APP).
Habitats protected or restored GRI 304-3, EU13
Generation Transmission
Unit Location Area Status Unit Location Area Status

The APP surrounding Approximately 60 % of the area (0.1 km2) was revegetated, with
the reservoir has been EDTE Boa Nova (BA) 0.1 km² recovery methodology using protected species, according to the
Salvador das regenerated, with favorable project submitted and validated by ICMBio.
Missões, Rolador adaptation of planted species.
HPP São José¹ 13.6 km² Fully preserved 0.92 km² compensation area, with exclusive
and Cerro Largo The cultivation of native EDTE Ibicoara (BA) 0.1 km²
(RS) seedlings and the extraction methodology for such purpose.
of invasive seedlings continue
0.0047 km² preserved area, compliant with Rio Grande do Sul state
for 1 km. Lumitrans Maximiliano de Almeida (RS) 0.0047 km²
laws.
Vegetation recovery at
ETSE² Urubici (SC) 0.3148 km² 0.3148 km2 fully preserved area.
the edge of reservoir and
Caçu and São
HPP JLMGP¹ 4.38 km² reforestation on the site ETSE² Gaspar (SC) 0.005 km² 0.005 km2 fully preserved area.
Simão (GO)
concluded, with arboreal stage
consolidated.
0.05 km² compensation area for vehicle gases and Forest Exploration
ETC Rio Novo do Sul (ES) 0.05 km²
Santa Helena de Restoration project underway Authorization (AEF), (initiated in 2022), with planting for reforestation.
Goiás, Acreúna by planting native seedlings
SHPP Verde 08 5.25 km²
and Turvelândia in 0.5 km² out of 2.8 km² Inhapim, Alvarenga, Pocrane,
TCC 0.1312 km² 0.1312 km² reforestation area, with planting concluded.
(GO) estimated for APP. Mutum and Turumirim (MG)
Recovery areas under Campanário, Governador

Lavrinhas and Vale
SHPP Lavrinhas 0.8 km² intermediary stage of forest Valadares, Itabacuri, Jampruca,
do Paraíba (SP) TPE 1.949 km² Reforestation of 1.949 km² with planting under monitoring stage.
succession. Mathias Lobato, Jequitinhonha
and Catuji (MG)
Recovery areas under
Queluz and
SHPP Queluz 2.78 km² intermediary stage of forest Paratinga, Brotas de Macaúbas
Paraíba Valley (SP) ETB 0.1509 km² Reforestation of 0.1509 km², with planting in the early stage.
succession. (BA)
Area recovery underway Cachoeiro do Itapemirim and Environmental compensation of 8.6 km², with management plan under
HPP Ferreira Ferreira Gomes ETC 8.614 km²
11.25 km² through actions bolstering the Vargem Alta (ES) early stage.
Gomes (AP)
region’s natural regeneration.
Environmental compensation of 1.63 km², with management plan under
ETC Cachoeiro do Itapemirim (ES) 1.63 km²
elaboration.
¹ Projects analyzed by an external environmental advisory firm.
Environmental compensation of 0.0627 km², with studies approved for
ETC Jerônimo Monteiro (ES) 0.0627 km²
management plan elaboration.
TPE Jequitinhonha (MG) 1.24 km² Reforestation of 1.24 km², with donation procedures underway.
² Except for these units, others maintain partnerships with third parties.
Emissions GRI 103-2, 103-3 |305
To deal with global warming and climate

Greenhouse gases direct emissions
changes, in 2022, Alupar initiated its
(tCO2 equivalent)¹ – 2021 GRI 305-1
greenhouse gas inventory, which allowed to Stationary combustion - Generator 25.41
quantify the direct and indirect emissions
Stationary combustion -Chainsaw and Brushcutter 1.75
stemming from production process.
Effluents processing 15.29
The Company creates carbon credits (Emission Transportation of materials, products, waste, employees and
668.16
Certified Reductions- RCEs) traded in the passengers
international market. This practice created by the Fugitive emissions 1,275.38
UN contributes to reduce greenhouse gases in
Total gross CO2 emissions 1,985.99
the atmosphere and control global warming.
¹ The gases included in the calculation are CO2, CH4, N2O, R-410A, SF₆.
Alupar has four projects in different stages of
UN’s approval to issue the RCEs: HPP Engenheiro
José Luiz Muller Godoy Pereira. (HPP JLMGP); Biogenic emissions of CO
wind power plants Energia dos Ventos I, II, 2 (tCO2 equivalent) – 2021 GRI 305-1
III, IV and X; SHPPs Queluz and Lavrinhas. In
2021, Alupar contracted a study to assess credit CO2 emissions 147.72
amounts and an audit for Ferreira Gomes asset.
Between 2010 and 2021, HPP Ferreira Gomes,
SHPP Lavrinhas and SHPP Queluz were provenly Greenhouse gas indirect emissions
jointly responsible for avoiding the emission of 3 (tCO2 equivalent) - 2021 GRI 305-2
million tons of carbon in the atmosphere. EU 5
Energy generation 226.05
Energy GRI 103-2, 103-3 | 302
Following a global trend of transition to a

Fuel consumption from renewable sources (GJ) GRI 302-1
renewable energy matrix, Alupar has diversified
2020 2021
the energy generation through wind and
photovoltaic sources. The first photovoltaic Ethanol 43.00 523.96
power plant is under phase of implementation Total 43.00 523.96
and first two wind power plants have been built,
out of a total of seven new power plants.
Fuel consumption from non-renewable sources (GJ) GRI 302-1
Alupar’s sustainability guidelines guide as to
2020 2021
energy and fuel conscious consumption, especially
during phase of works. In 2021,12,027.71 GJ Gasoline 494.15 5.71
were consumed (compared to 8,746.14 GJ, in Diesel 1,107.00 15,923.43
2020), including transmission and generation
Total 1,601.15 15,929.14
operations. The Company foments lower
consumption, however, it does not have a program
outlined for these initiatives. GRI 302-1, 302-4 Energy consumed (GJ) GRI 302-1
In 2021, Alupar’s assets installed capacity 2020 2021

totaled 560.1 MW (461.4 MW hydro and
Electricity 8,746.14 12,027.71
98.7 MW wind power), with a net production
of 2,462.78 GWh (2039.82 GWh hydro and Total 8,746.14 12,027.71
422.96 GWh wind power). EU1, EU2
To quantify the energy consumed generated Energy sold (GJ) GRI 302-1
by fuels, we rely on supply control tools
that issue reports on diesel, gasoline 2020 2021
and ethanol consumption. For electricity Electricity 7,680,231.36 8,866,008.01
consumption, we adopt monthly reports
Total 7,680,231.36 8,866,008.01
issued by local distribution companies.
Total energy consumed (GJ) GRI 302-1
In 2021, 12,027.71 GJ were consumed, 2020 2021
including energy transmission Fuels from non-renewable sources 1,601.35 15,929.14
and generation operations Fuels from renewable sources 43.00 523.96
Energy consumed¹ 8,746.14 12,027.71
Energy not consumed 7,680,231.36 8,866,088.01
Energy sold² 7,680,231.36 8,866,088.01
Total 10,390.29 28,480.00
¹ Information about consumption were obtained through electricity bills. Fuel consumption data derive from supply control reports.
² Generation plants consumption was not considered, these data will be reported in the next cycle. The energy deemed as sold corresponds to
the non-consumed self-generated energy.
Energy intensity¹ (GJ) GRI 302-3
2021
Inside the organization 39.61
1
Electricity and fuel were considered as energy to calculate energy intensity, in GJ/employees.
Water & effluents

GRI 103-2, 103-3 | 303-1
The Company drawn up policies and guidelines In 2021, a water consumption of 323.12
governing the rational and controlled use megaliters (ML) was recorded at the Company,
during projects construction and operational between transmission and generation –
phases. Other initiatives include consumption 110% higher than the previous cycle. So
awareness campaigns among employees, far, it is not possible to attribute higher
suppliers and neighboring communities by consumption to current controls. GRI 303-5
disclosing environmental good practices in
the Company’s communication network. In 2021, Alupar moved forward with hydroelectric
projects limnological monitoring, whose duty
Concerning energy transmission companies, is to control water quality (artificial reservoirs
water is not an element connected to and water environment) that receive pollutant
activity. In the lack of local concessionaire loads and effluents. This is a monitoring
supply at substations, artesian wells are considered one of the most important by
built to meet the needs of local consumers, environmental authorities. In projects, effluents
and consumption is low during works. are discharged through collection utility system
or septic tank. In 2021, an event was recorded
As to hydroelectric generators, water has been in Ferreira Gomes (AP), referring to exceeded
used on a non-consulting basis to generate limit of effluent discharge. GRI 303-2, 303-4
power, that means, it is used and returned
in the same amount and with the same The environment department conducts the
quality. Water used by employees is obtained water consumption and effluent discharge
through utility grid or drilled artesian wells. management, which considers a low risk of
water stress. The reason is that no group
project conducts water withdrawal in regions
with these characteristics. IF-EU-140 a.3
Alupar has guidelines on the water rational use

in projects, as well as it promotes employees’
awareness campaigns.
Total water volume withdrawn across all areas and areas with water stress¹, by source (ML) GRI 303-3
2020 2021
Source
Transmission Generation Transmission Generation
Surface water (Total) 0.13 0.95
Freshwater (≤1.000 mg/l total dissolved solids) 0.13 0.95
Other water (>1.000 mg/l total dissolved solids)
Underground water (Total) 44.12 109.98 6.4 317.74
Freshwater (≤1.000 mg/l total dissolved solids) 44.12 109.89 6.4 317.74
Other water (>1.000 mg/l Total Dissolved Solids)
Third-party water (Total) 0.98 0.06
Freshwater (≤1.000 mg/l total dissolved solids) 0.98 0.06
Other water (>1.000 mg/l total dissolved solids)
Total 44.12 110.02 7.38 318.75

¹ Neither consumption deriving from seawater and water withdrawn internally, no in any area with water stress
Total water discharge across all areas and stress areas, broken down by following
sources (ML), where applicable - 2021 GRI 303-4
Type of source1 Transmission Generation

Surface water NA 2.45
Underground water NA 0.56
Total NA 3.01
¹ The Company does not have water source in water stress areas. Data are not available in Transmission, most of assets rely on septic tanks, cleaning
is not required.
Water volume discharged by type of treatment (ML)1 - 2021 GRI 303-4
Physical treatment 3.01
Chemical treatment 3.01
Biologic treatment 3.01
Total volume of water discharged (ML) 3.01
¹ The same water volume underwent three types of treatment.

Waste GRI 103-2, 103-3 | 306
The appropriate disposal of waste generated in On the other hand, Class I waste is
projects is one of the Company’s commitments packaged, identified and stored in
to the environment. The appropriate disposal specific locations for destination external
during works operational stage is executed by to the duly licensed company.
municipal collection or specialized companies.
Maintenance activities which contain Employees receive training to reinforce waste
hazardous waste involve the reverse logistics management good practices, as well as suppliers
with suppliers, in charge of management, engagement is directed by these partners’
treatment and final disposal. GRI 306-1, 306-2 social and environmental responsibility. All
the group generation companies have a solid
Concerning transmission, the higher-risk waste waste management plan and in transmission
would be the reactor insulating oil leakage, companies, the monthly monitoring is
controlled by a containment basin. Concerning conducted by each unit’s employees. GRI 306-3
generation, lubricant oil and grease (used
in equipment maintenance in hydroelectric The Company has been standardizing across
and wind power plants) are components with all its units, waste collectors and weighing
hazardous characteristics, as well as the sludge devices to separate these materials and
resulting from effluents anaerobic treatment. raise users’ awareness at facilities.
Waste generated at units through household In 2021, a total of 72.12 tons of Class I and Class
(food, sanitary, kitchen and cleaning in general) II waste was generated. At EDVs (Energia dos Biodiversity GRI 103-2, 103-3
and industrial consumption (equipment Ventos), waste is quantified in cubic meters; in |304
scrap, cables, wires, amongst others) are 2021, 88.8m³ Class II waste and 14.4 m³ Class I
considered non-hazardous and forwarded waste were generated. HPP São José’s lamps are
for municipal collection utility systems or reported at units, which totaled 543 in the period.
screening centers available in the regions.
Total waste destined for final disposal, Total waste not destined for final disposal,
by composition in metric tons (t) – 2021 GRI 306-5 by composition in metric tons – 2021 (t) GRI 306-4
Composition Transmission Generation Composition Transmission Generation

Plastic, paper and cardboard 55.56 9.68 Used oil of engines, lubricants, filters and contaminated 0 1.20
Effluents local treatment sludge 0.80 Metal scrap 0 0.60
Absorbers, filter materials (including oil filters not previously Total - 1.80
specified), cleaning cloths, protective garment, contaminated by 10.64
hazardous substances
Battery, lead-based electric accumulator and waste, including plastic

0.45
deriving from battery outer casing
Total 55.56 21.57

Overall Total 77.13
Total waste generated, by composition (t) GRI 306-3
2020 2021
Type (hazardous or
Category Transmission Generation Transmission Generation
non-hazardous)
Absorbers, filter materials
(including oil filters not
previously specified),
Class I - - - 11.08
cleaning cloths, protective
garment, contaminated by
hazardous substances
Plastic, paper and

Class II 260 112 50.56 10.48
cardboard
Total - 260 112 50.56 21.56

Total hazardous waste destined for final disposal, by operation,

in metric tons (t) – 2021 GRI 306-5
Out of organization/Offsite
Hazardous waste Total
Burning with energy recovery
Burning without energy recovery 10.64 10.64
Specialized Company 0.10 0.10
Resale 0.45 0.45
Total 0.10 11.09 11.19
Total non-hazardous waste destined for final disposal, by recovery operation,

in metric tons (t) – 2021 GRI 306-5
Out of organization/Offsite
Non-hazardous waste Total
Landfill 55.56 9.68 65.24
Sanitation station/public utility 0.80 0.80
Total 55.56 10.48 10.48
Total waste destined for final disposal 55.56 21.57 77.13
In 2020, we did not receive consolidated information about waste disposal, therefore, this was not possible to report.
List of entities and/or subsidiaries included in

the Company’s financial statements GRI 102-45
ETEP – Empresa Paranaense de Transmissão de Energia S.A TCC – Transmissora Caminho do Café S.A Risaralda – Risaralda Energia S.A.S.E.S.P.
ENTE – Empresa Norte de Transmissão de Energia S.A TPE – Transmissora Paraíso de Energia S.A Verde 8 – Verde 8 Energia S.A
ERTE – Empresa Regional de Transmissão de Energia S.A ESTE – Empresa Sudeste de Transmissão de Energia S.A Água Limpa – Água Limpa S.A
E ATE – Empresa Amazonense de Transmissão de Energia S.A TSM – Transmissora Serra da Mantiqueira S.A La Virgen – La Virgen S.A.C
ECTE – Empresa Catarinense de Transmissão de Energia S.A TCE – Transmissora Colombiana de Energia S.A.S.E.S.P. EAP I – Eólica do Agreste Potiguar I S.A
STN – Sistema de Transmissão Nordeste S.A EDTE – Empresa Diamantina de Transmissão de Energia S.A EAP II – Eólica do Agreste Potiguar II S.A
Transleste – Companhia Transleste de Transmissão AETE – Amazônia – Eletronorte Transmissora de Energia S.A EAP III – E
ólica do Agreste Potiguar III S.A
Transudeste – Companhia Transudeste de Transmissão TME – Transmissora Matogrossense de Energia S.A EAP IV – Eólica do Agreste Potiguar IV S.A
Transirapé – Companhia Transirapé de Transmissão ETB – Empresa de Transmissão Baiana S.A EAP V – Eólica do Agreste Potiguar V S.A
STC – Sistema de Transmissão Catarinense S.A Foz – Foz do Rio Claro Energia S.A EAP VI – E
ólica do Agreste Potiguar VI S.A
Lumitrans – Companhia Transmissora de Energia Elétrica Ijuí – Ijuí Energia S.A EAP VII – E
ólica do Agreste Potiguar VII S.A
ETES – Empresa de Transmissão do Espírito Santo S.A Lavrinhas – Usina Paulista Lavrinhas de Energia S.A
Alupar Chile – Alupar Chile Inversiones SpA
EBTE – Empresa Brasileira de Transmissão de Energia S.A Queluz – Usina Paulista Queluz de Energia S.A Alupar Colômbia – Alupar Colômbia S.A.S
ESDE – Empresa Santos Dumont de Energia S.A Ferreira Gomes – Ferreira Gomes Energia S.A
Alupar Peru – Alupar Inversiones Peru S.A.C
ETEM – Empresa de Transmissão de Energia do Mato Grosso S.A EDVI – Energia dos Ventos I S.A Apaete – Apaete Participações em Transmissão S.A
ETVG – Empresa de Transmissão de Várzea Grande S.A EDVII – Energia dos Ventos II S.A Transminas – Transminas Holding S.A
ETSE – Empresa de Transmissão Serrana S.A EDV III – Energia dos Ventos III S.A UFV Pitombeira – UFV Pitombeira S.A.
ELTE – Empresa Litorânea de Transmissão de Energia S.A EDV IV – Energia dos Ventos IV S.A Windepar – Windepar Holding S.A
ETAP – Empresa Transmissora Agreste Potiguar S.A EDV X – Energia dos Ventos X S.A AF – AF Energia S.A
ETC – Empresa Transmissora Capixaba S.A GET – Geração de Energia Termoelétrica e Participações S.A ACE – ACE Comercializadora Ltda
EXHIBITS
GRI
Content index
EXHIBITS
Stakeholder engagement approach and key topics raised
GRI 102-43, 102-44
Stakeholder name Engagement Topics and concerns
Public authorities
Electricity National Agency (Aneel), Brazilian
Institute of Environment and Renewable In loco visit, written communication,
Regulatory and licensing issues.
Natural Resources (Ibama), Biodiversity meetings, letters.
Conservation Chico Mendes Institute Our stakeholders management is strategic and engagement
(ICMBio), System National Operator (ONS). is continuous throughout the year, conducted according to
each stakeholder’s particular characteristics and through
Suppliers and service providers
Environmental advisory services, designers,
Satisfaction surveys, negotiation Contracts, terms, negotiations, specific channels with each stakeholder. As a company
meetings, emails. services rendering
assemblers, contractors, manufacturers. of infrastructure projects in the electricity sector, certain
Shareholders
Advances, challenges and next steps
relationship groups stand out in our engagement actions,
Independent board members and board of Presentations and meetings
executive officers.
for successful projects. such as public authorities, service providers and local
communities.
Surveys (climate, return to office), Company’s material facts, training, Our engagement work crosses all the phases of our business,
whistleblowing channel, intranet, corporate policies, performance
Employees institutional website, social networks, evaluation, compensation and from feasibility and implementation to project operation,
e-mail, training, communication benefits, career management, goals,
campaigns, employee portal. open opportunities. creating value for society and intensified in each group
according to the need.
Local communities Focal points in communities,
Doubts about activities and the
Families and groups of people residing in on-site visits, online or on-site
operation.
projects influence area meetings.
Employees receiving performance analyses by employee category (%) GRI 404-3
2021
Men Women Total
Chief Executive Officer 0 N/A¹ 0
Vice Chief Executive Officer 0 Not applicable 0
Officer 76.92 Not applicable 76.92
Controller 100 Not applicable 100
Manager 94.74 100 96.3
Coordinator/Supervisor/Specialist 100 100 100
Auxiliary Services 95.83 90.91 94.22
Administrative/Technical-Operational 95.65 92.44 94.99
Total 95.2 93.63 94.85

¹ The Not Applicable (N/A) refers to the calculation not possible, due to the lack of women in respective categories.
Number of species included in IUCN Red List and conservation national lists,
broken down by risk level and extinction GRI 304-4
2020 2021
Extinction risk level
Transmission & Generation Transmission Generation Total
Critically endangered species¹ 3 4 0 4
Endangered species² 3 3 3 6
Vulnerable 3 3 15 18
Near-threatened 3 3 14 17
Least concern 0 3 1 4
¹ Criticality classified according to lists of endangered fauna ICMBio (2018), IUCN (2021), MMA (2014) and Decree No.63.853/2018 (State of São Paulo).
² Species indicated as “in danger” in national lists were considered under “endangered species” class hereof.
GRI Content Index GRI 102-55
General Content
Omis-
GRI Standards Content Page/URL SDG
sion
GRI 101: GENERAL DISCLOSURES 2016
GRI 101 does not have Content
ORGANIZATIONAL PROFILE
102-1 Name of the organization 8
102-2 Activities, brands, products and services 8
102-3 Headquarters location 8
102-4 Location of operations 8, 14
102-5 Ownership and legal form 8
GRI 102: General Disclosures 2016 102-6 Markets served 8
102-7 Size of organization 8
102-8 Information about employees and other collaborators 37 to 39 8, 10
102-9 Supply chain 29
102-11 Precautionary principle or approach 23
102-12 External initiatives 10
102-13 Membership in associations 10
EU1 Installed capacity (MW), broken down by primary energy source and by regulatory regime 56 7
EU2 Net energy output, broken down by primary energy source and by regulatory regime 56 7, 14
Energy Sector Supplement –
Organizational profile EU4 Length of above and underground transmission and distribution lines by regulatory regime 26
EU5 Allocation of CO2emissions allowances or equivalent, broken down by carbon trading

55 13, 14, 15
framework
Omis-
GRI Standards Content Page/URL SDG
sion
STRATEGY
GRI 102: General Disclosures 2016 102-14 Statement from the organization’s top executive 5
ETHICS & INTEGRITY
GRI 102: General Disclosures 2016 102-16 Values, principles, standards and norms of behavior 9 16
GOVERNANCE
GRI 102: General Disclosures 2016 102-18 Governance structure 19
STAKEHOLDERS ENGAGEMENT
102-40 List of stakeholder groups 4, 15
102-41 Collective bargaining agreements 100% of employees are covered by collective bargaining agreements 8
GRI 102: General Disclosures 2016 102-42 Identifying and selecting stakeholders 15
102-43 Approach to stakeholder engagement 15, 66
102-44 Key topics and concerns raised 15, 66
REPORTING PRACTICE
102-45 Entities included in the consolidated financial statements 30, 64
102-46 Defining report content and topic boundaries 4, 15 and 17
102-47 List of material topics 17
102-48 Restatements of information Not applicable.
102-49 Changes in reporting Not applicable.
GRI 102: General Disclosures 2016 102-50 Reporting period 4
102-51 Date of most recent report 2020
102-52 Reporting cycle 4
102-53 Contact point for questions regarding the report 4
102-54 Claims of reporting in accordance with the GRI standards This report was prepared in accordance with the GRI standards “Core” option
102-55 GRI Content Index 66
102-56 External assurance Not applicable.

Material topics
GRI Standards Content Page/URL Omission SDG
ECONOMIC PERFORMANCE
103-1 Explanation of the material topic and its boundary 17
GRI 103: Management approach 2016 103-2 The management approach and its components 30
103-3 Evaluation of the management approach 30
201-1 Direct economic value generated and distributed 31 8, 9

GRI 201: Economic performance 2016
201-2 Financial implications and other risks and opportunities due to climate change 30 13
ANTICORRUPTION
22
Points of concern refer to relationship with public
authorities in negotiations of business, asset acquisition
205-1 Operations assessed for risks related to corruption 16
and donations on behalf of communities and various
institutions located in regions where the company
operates.
GRI 205: Anticorruption 2016
22
All employees were informed in 2021, however, the
205-2 Communication and training on anticorruption policies and procedures 16
Company does not have information about training by
employee category.
205-3 Confirmed cases of corruption and actions taken No cases of corruption in the period. 16
ENERGY

302-1 Energy consumption within the organization 56 and 57 7, 8, 12, 13
Not applicable, since the Company does not have energy

302-2 Energy consumption outside of the organization 7, 8, 12, 13
GRI 302: Energy 2016 consumption outside of the organization.
302-3 Energy intensity 57 7, 8, 12, 13
302-4 Reduction of energy consumption 56 7, 8, 12, 13
WATER AND EFFLUENTS
303-1 Interactions with water as a shared resource 58 6, 12
303-2 Management of water discharge-related impacts 59 6
GRI 303: Water and effluents 2019 303-3 Water withdrawal 59 6, 8, 12
303-4 Water discharge 58 6
303-5 Water consumption 58 6
BIODIVERSITY

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas
53 6, 14, 15
of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products and services on biodiversity 52 6, 14, 15
54
HPP Ferreira Gomes APP actions comply with
Environmental Basic Plan, approved by Amapá’s
environmental authority. In other habitats, actions
are supported by the fact that the APP creation is
entrepreneur’s responsibility, provided for by Law No.
12.651/2012 (Article 4, III) and the plant’s operation
license conditions. In case of the state of Rio Grande do
Sul, the mandatory reforestation is provided for by State
Law No. 9.519/1992 and SEMA Normative Instruction
No. 01/2018. SHPP Queluz and SHPP Lavrinhas APP
restoration project also comply with SMA Resolution
No. 08/2008 and SMA No. 32/2014, as well as TCRA
111.394/2017.
EDTE (Boa Nova-BA) executed recovery by using
GRI 304: Biodiversity 2016 protected species, according to ICMBio’s validation. EDTE
(Ibicoara-BA) exclusively conducted the preservation.
304-3 Habitats protected or restored 6, 14, 15
Lumitrans was supported by Rio Grande do Sul laws
(State Law No. 9.519/1992 and State Decree No.
38.355/1998). ETSEs complied with Normative Instruction
No. 46 of Environment Foundation – FATMA and Federal
Law No. 11.428 of 2006. ETC (Rio Novo do Sul-ES)
conducted planting in fencing areas, thus, promoting
reforestation. TCC, TPE and ETB conducted planting
aiming forest recovery. ETC (Cachoeiro do Itapemirim e
Vargem Alta-ES) based on the forest code and reference
statement was issued by State Institute of Environment
and Resources. ETC (Cachoeiro do Itapemirim-ES)
observed the forest code and reference statement
was issued by municipal government. ETC (Jerônimo
Monteiro-ES) conducted environmental studies that
subsidized the public consultation to create the Maciço
das Andorinhas Conservation Unit. TPE (Jequitinhonha-
MG) observed the area donation rules.
304-4 Species included in IUCN red list and Brazilian conservation lists with habitats in areas
51, 67
affected by the organization’s operations
Energy Sector – Biodiversity EU13 Biodiversity of replacement habitats compared to the biodiversity of affected areas 51 6, 14, 15
EMISSIONS
103-1 Explanation of the material topic and its boundary 51 and 54
3, 12, 13,
305-1 Direct (Scope 1) GHG emissions 55
GRI 305: Emissions 2016 14, 15
305-2 Indirect (Scope 2) GHG emissions deriving from energy acquisition 55
WASTE
306-1 Waste generation and significant waste-related impacts 61 3, 6, 11, 12
306-2 Management of significant waste-related impacts 61 3, 6, 11, 12
3, 6, 12,
306-3 Waste generated 61 and 62
GRI 306: Waste 2021 14, 15
306-4 Waste diverted from disposal 62 3, 11, 12
3, 6, 11,
306-5 Waste directed to disposal 62 and 63
12, 14, 15
ENVIRONMENTAL COMPLIANCE

The Company received fines totaling R$5 million referring

GRI 307: Environmental Compliance to the discharge of effluents out of standards required in
307-1 Non-compliance with environmental laws and regulations 16
2016 Araguari river. Alupar appealed and proceeding has been
analyzed at court levels.
SUPPLIERS ENVIRONMENTAL ASSESSMENT
Information not available.

Suppliers connected with
environment-related activities
308-1 New suppliers that were screened using environmental criteria evaluate environmental criteria,
however, we do not have this
information consolidated for
GRI 308: Suppliers environmental this cycle.
assessment 2016
For this cycle, we do not
have methodology to
quantify suppliers’ negative
308-2 Negative environmental impacts in the supply chain and actions taken
environmental impacts.
Information will be available in
the next report.
EMPLOYMENT
401-1 Employees’ new hires and turnover 40 5, 8, 10
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time
GRI 401: Employment 2016 37 3, 5, 8
employees
401-3 Maternity/paternity leave 41 5, 8

Not applicable, since the

Company did not have
EU14 Programs and processes to ensure the availability of a skilled workforce 4, 8
programs relating to this
indicator until 2021.
EU16 Policies and requirements regarding health and safety of employees, contractors and
43 8
Energy Sector Supplement – subcontractors
Employment Civil construction activities are executed by contractors.
EU17 Days worked by contractor and subcontractor employees involved in construction,
Operations & maintenance are executed by our 8
operation & maintenance activities
employees.
Information not available. The Company does not have

EU18 Percentage of contractor and subcontractor employees that have undergone relevant
consolidated information, it will report this in the next 8
health and safety training
cycle.
LABOR RELATIONS
Term is 30 days on average, regarding any change in

GRI 402: Labor relations 2016 402-1 Minimum notice period regarding operational changes benefits after officers’ approval. Collective bargaining 8
agreements do not have minimum notification period.
OCCUPATIONAL HEALTH AND SAFETY

403-1 Occupational health and safety management system 42 8
403-2 Hazard identification, risk assessment and incident investigation 42 3, 8
403-3 Occupational health services 43 3, 8
403-4 Worker participation, consultation and communication on occupational health and safety 42 8, 16
403-5 Worker training on occupational health and safety 42 8
403-6 Promotion of worker health 43 3

GRI 403: Occupational health and
safety 2019 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by
42 8
business relationships
Information not available – we

do not have consolidated
403-8 Workers covered by an occupational health and safety management system 43 information about contractors 8
for this report, this will be
reported in the next cycle.
403-9 Work-related injuries 42 3, 8, 16
403-10 Work-related ill health 42 3, 8, 16
TRAINING & EDUCATION
404-1 Average hours of training per year, per employee 37 4, 5, 8, 10
404-2 Programs for upgrading employee skills and transition assistance programs 37 8
GRI 404: Training & education 2016
404-3 Percentage of employees receiving regular performance and career development reviews 38, 67 5, 8, 10
LOCAL COMMUNITIES
413-1 Operations with local community engagement, impact assessments, and development
44
programs
GRI 413: Local communities 2016
413-2 Operations with significant actual and potential negative impacts on local communities 44, 48 1, 2
EU19 Stakeholder participation in decision-making processes related to energy planning and

10 and 44 1, 2, 9, 16
infrastructure development
Not applicable, since no

EU20 Approach to managing the impacts of displacement displacements occurred in 1, 2, 11
2021.
Energy Sector Supplement – local New facility: ELTE unit acquired area for Domênico Information not available. No
communities Rangonim substation, indemnifying one person, in the consolidated information on
EU22 Number of people physically or economically displaced and compensation, broken down amount of R$9 million. any project referring to the
by type of project Current facility expansion: TSM unit indemnified four number of people benefited
persons for utility easement and improvements, in the considering access to energy 1, 2
amount of R$419,338.10. or employment, nor the
number of people directly
EU8 Research and development activity and expenditure or indirectly employed in the
26
reliable electricity and sustainable development promotion works.
AVAILABILITY & RELIABILITY
EU6 Management approach to ensure short and long-term electricity availability and reliability 26 7
As generation/transmission
Energy Sector Supplement – company, Alupar does not
Availability & reliability conduct demand planning
EU10 Planned capacity against long-term projected electricity demand 7
by energy source. This work
is executed by the Energy
Research Company (EPE)
SYSTEM EFFICIENCY
Energy Sector Supplement – System Information not available for 7, 8, 12,

EU12 Transmission and distribution losses as a percentage of total energy
efficiency this report. 13, 14
PLANNING AND ANSWER FOR EMERGENCIES AND DISASTERS
Energy Sector Supplement – Planning

EU21 Contingency planning measures, disaster/emergency management plan and training
and response to emergencies and 24 1, 11
programs, and recovery/restoration plans
disasters
ACCESS
Energy Sector Supplement – Access EU30 Plant’s average availability factor, broken down by source of energy and regulatory system 28 1, 7
SASB
In cubic meters, the quantity of water withdrawn is

IF-EU-140 a.1
326,130m³ and consumer water is 323,120m³.
An incident was recorded not compliant with quantity

Water management
IF-EU-140 a.2 of water and/or quality licenses, standards and rules,
regarding effluents discharge.
IF-EU-140 a.3 58
No incidents or fatalities were recorded in 2021. The rate

Workforce health and safety IF-EU-320 a.1
of nearly accident is null.
Not applicable. Alupar is not

IF-EU-420 a.1
an energy concessionaire.
Demand efficiency and final use 0% of electric charge is served by smart network
IF-EU-420 a.2
technology.
IF-EU-420 a.3 Not applicable.

Sustainable Development Goals

Acknowledgments
Alupar
Coordination
Environment, Investor Relations,
New Business Development, People
Management and Legal Departments.
Project advisory services, GRI,

content and design
grupo report – rpt sustentabilidade
www.rptsustentabilidade.com.br
Photos:
Adelson Sales – Page 56
Olivo Mecabo – Page 60
André Prietsch - Pages 2, 3, 4, 5, 7, 8, 10, 13, 15,
18, 23, 25, 26, 29, 31, 33, 34, 35, 38, 39, 40, 43,
49, 50, 51, 55, 57, 58, 59, 61, 62 e 63
João Grecco – Page 24
Leandro Matias – Page 32
Luiz Botelho – Pages 52 and 53
Andres Sossa - Page 37
Eros Bonilha - Page 36
Spell Checking
Katia Shimabukuro

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Sustainability

03 History & future 36 Care for people

Essence 49 Care for the planet

25 Value chain Exhibits

Message from Management GRI 102-14

Global TCC and TSM 1,000 largest 127 th

Alupar way of being

Mission, Vision and Values

Alupar values partnership and relationship ABRAGEL – Brazilian Association

ABDIB – Brazilian Association of

We adhered to the United Nations (UN) Global

Timeline 2008 to 2011 2014

2016 2018 2021

Grant issued to build the photovoltaic power plant

How Alupar operates in

30 transmission systems through

 ssets located in Brazil,

Read more about Alupar’s business

Climate and water

The hydroelectric and small hydroelectric

Waste ENVIRONMENTAL SOCIAL IMPACT BOUNDARY

Planning Board of Directors Fiscal Council

100% Energia dos 100%

100% 51% 85%

Controlling shareholder Other shareholders

Ethics & integrity

The dissemination of an ethical culture guides

Information security this document assists the Company in the

Risks and crisis management

Contingency planning measures, management, disaster, emergency plans, training

Mapped risk - Dam structural accidents

ENTE 464 TPE SHPP – Morro Azul Sep/2016 19.9

STN 541 ESTE 236 HPP – La Virgen May/2021 93.8

Transleste 150 TCE 200 SHPP - Água Limpa Pre-operational 23

Evidencing our commitment to sustainable development,

Alupar’s sustainable growth is guided by analysis of financial implications related to

Direct economic value generated (in thousands of Reais) GRI 201-1

Economic value retained (in thousands of Reais) GRI 201-1

Economic value distributed (in thousands of Reais) GRI 201-1

Distributed 2020 2021

Employees’ salaries and benefits 194,013 189,120

Payments to capital providers 1,089,181 1,593,939

Payments to the government 1,453,267 1,322,574

Investments in community 6,810 5,529

Total 5,120,309 4,502,826

Economic value distributed (%) GRI 201-1

Employees’ salaries and benefits 3.79 4.20

Payments to capital providers 21.27 35.40

Payments to the government 28.38 29.37

Investments in community 0.13 0.12

Total 100 100

Consolidated Ebitda Generation

The Ebitda deriving from out energy transmission

In the energy generation segment, Ebitda increased

Financial result Indebtedness

Financial income went from R$51.3 million

Value-Added Statement (%)

Employees (employee remuneration and benefits) 3.76 3.31

Government 32.42 27.71

Retained earnings 39.74 36.16

Alupar values partnership and relationship ABRAGEL – Brazilian Association

ABDIB – Brazilian Association of

Grant issued to build the photovoltaic power plant

ssets located in Brazil,

Financial income went from R$51.3 million

RONAS (PwD Support National

unicipal Fund of Children and Adolescents