Eletrobras

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Ethics, Integrity and Sustainability

We are a company committed to sustainable development and to promoting ethical principles and integrity throughout our value chain.

The Supplier Code of Conduct sets out the guidelines that our partners must follow, covering anti-corruption practices, respect for human rights, environmental responsibility, labor standards, cyber security, and occupational health and safety.

In our procurement processes, we also observe the corporate integrity criteria defined by Eletrobras' Compliance Program. Furthermore, we seek to incorporate actions that contribute to the Sustainable Development Goals (SDGs)​, promoted by the United Nations Development Programme (UNDP). 

Therefore, it is essential that our suppliers are familiar with and engaged in our corporate guidelines aligned with the SDGs, which we have voluntarily adopted as a reflection of our commitment to sustainable development, human rights, and socio-environmental responsibility.


Performance indicators

Check out our performance indicators on the sustainability and integrity of supply chain management:​


​2021​​
2022
2023
2024

​2025 target​

% of critical suppliers monitored in relation to sustainability risks100%100%100%100%​100%
% of critical suppliers who have environmental, labor, integrity, human rights or social clauses100%100%100%100%​100%
Number of suppliers subject to assessments of environmental, labor, integrity, human rights or social aspects (critical suppliers)22731825
1491
​412
​-


​Supplier Registration

Eletrobras adopts a structured screening process to identify and register suppliers, aiming to ensure responsible procurement practices and compliance throughout the entire relationship cycle with its business partners.

This approach is based on risk management, seeking to minimize impacts and ensure that suppliers are aligned with the company's values and commitments.

During the registration process, various risk-related aspects are considered, including:

  • Country-specific risks: associated with the political, economic, regulatory, and social environment of the supplier's operating location.​
  • Product/service-specific risks: related to technical compliance, applicable regulations, and sensitive characteristics of the product or service provided.
  • Industry-specific risks: involving highly regulated sectors or those with a history of risks such as corruption or unethical practices.
  • Environmental risks: negative impacts on the environment resulting from the supplier's activities.
  • Governance risks: failures in management practices, corporate ethics, transparency, and compliance.
  • Social risks: working conditions, respect for human rights, use of outsourced or subcontracted labor.
  • Business relevance: the supplier's criticality to operations, considering strategic impact, supply volume, and difficulty of replacement.

 

Supplier Evaluation and Development Process

The company has a structured process for evaluating and developing suppliers, with the goal of promoting responsible practices, ensuring compliance, and strengthening sustainability within the supply chain.


Supplier Evaluation

The process includes:

  • Documentary assessments: systematic analysis of evidence provided by suppliers, such as policies, certifications, and operational practices.
  • Second-party on-site assessments: conducted by purchasing company employees or contracted consultants.
  • Third-party on-site assessments: carried out by independent and accredited bodies, ensuring impartiality and compliance with international standards.
  • Corrective Action Plan: As part of the evaluation process, the company implements corrective action plans whenever non-conformities or improvement opportunities are identified. These plans are developed jointly with suppliers, establishing clear deadlines, responsibilities, and goals for resolving issues.

This process is an integral part of the company's commitment to ethics, transparency, and socio-environmental responsibility.

All signed contracts include specific clauses related to integrity, human rights, environmental protection, and social aspects. Additionally, suppliers are continuously monitored and evaluated throughout their relationship with the company, ensuring compliance and promoting continuous improvement in their practices.

 

ESG Information and Training

The company provides suppliers with materials on ESG requirements, available through public channels such as website, events and institutional reports.


​Support for Corrective Actions

The company offers technical support to suppliers for implementing improvements, with follow-up and documentation recorded in institutional reports. If a supplier refuses or fails to comply with the corrective action plan, the contract will be terminated and the supplier will be blocked from future engagements.

In 2024, 88 suppliers were identified as requiring an action plan. All of them received support for the implementation and monitoring of corrective measures. As a result of this process, two contracts were discontinued for failing to achieve the agreed development.​

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This program is continuously monitored through the generation of reports, analyses, and periodic updates aimed at providing system feedback, strengthening existing controls, and identifying opportunities for improvement.​​

The company's procurement practices are continuously reviewed to ensure full compliance with the Supplier Code of Conduct, safeguarding alignment with ESG (Environmental, Social, and Governance) requirements. Suppliers that fail to meet the minimum ESG criteria within a defined timeframe are excluded from the contracting process, reinforcing the company's commitment to sustainability and social responsibility. With the implementation of the supplier performance evaluation process, those demonstrating superior ESG performance will be prioritized during selection, fostering a more ethical and sustainable supply chain. To strengthen this approach, the company provides targeted training to buyers and internal stakeholders, equipping them to fulfill their strategic role in supplier engagement.

Identification, Evaluation, and Monitoring of Supplier-Related Risks

The supplier selection and evaluation process at Eletrobras involves:

  • Supplier screening based on structured data (sanctions lists, politically exposed persons – PEPs, state-owned companies, etc.) and unstructured data (adverse media).
  • Continuous monitoring to detect changes in the supplier’s risk profile, such as involvement in financial crimes, regulatory violations, or reputational issues.
  • Global coverage using licensed sources of news and regulatory data, including sanctions lists.
  • Integration with internal systems via APIs, enabling automated and integrated processes for improved risk and compliance monitoring.

Examples of risks that may be identified include:

  • Involvement in forced labor or human rights violations 
  • Relationships with sanctioned individuals or entities 
  • Negative media coverage related to environmental, social, or governance (ESG) practices 
  • Connections with politically exposed persons (PEPs)

Supplier Screening

​FY 2024

​Total number of Tier-1 suppliers

​2269

​Total number of significant suppliers in Tier-1

​412

​% of total spend on significant suppliers in Tier-1​

38

​Total number of significant suppliers in non Tier-1

​459

​Total number of significant suppliers (Tier-1 and non Tier-1)​

​871



Supplier Assessment

​FY 2024

​Total number of suppliers assessed via desk assessments/ on-site assessments

​412​

​% of unique significant suppliers assessed

​100

​Number of suppliers assessed with substantial actual/ potential negative impacts

88

% of suppliers with substantial actual/potential negative impacts with agreed corrective action/improvement plan​

​100​

Number of suppliers with substantial actual/potential negative impacts that were terminated

​2




Corrective action plan support

​FY 2024

Total number of suppliers supported in corrective action plan implementation

88

% of suppliers assessed with substantial actual/potential negative impacts supported in corrective action plan implementation

​100



Capacity building programs

​FY 2024

Total number of suppliers in capacity building programs

88

% of unique significant suppliers in capacity building programs

​100


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