CTG Brasil announces Annual Sustainability Report

Material highlights the social, environmental and economic performance of the company, that completed in 2018 five years of operation

CTG Brasil has just released its Annual Sustainability Report according to the standards of the Global Reporting Initiative (GRI). The report shows the social, environmental and economic performance achieved by the company in 2018, considering all operations and subsidiaries, as well as investments and major actions and programs carried out in the last year. The company closed 2018 with gross revenues of R$ 5.6 billion and R$ 300.6 million in investments.

“In 2018, we celebrated five years. In this short period, we built a solid portfolio, becoming the second largest private power generator in the country, with an installed capacity of 8.28 GW. We have formed a strong team with a safety-oriented culture, operational excellence, ethics, business transparency and respect for people and the environment”, said Li Yinsheng, CEO of CTG Brasil.

“The actions carried out and disclosed in this report demonstrate our long-term commitment to Brazil, a market that we consider strategic due to its energy needs and its growth potential, and resources for the development and operation of renewable energy generation in large scale – CTG’s main business”, Yinsheng adds.

Investments in asset modernization

Last year, the company continued with its modernization project for the Ilha Solteira and Jupiá HPPs, located in the Paraná River, and reached the final stages of the modernization project for three turbines at the Capivara plant in the Paranapanema River. In total, R$ 300.6 million were invested in the activities.

In the modernization of Ilha Solteira and Jupiá, the total investment will be R$ 3 billion, with a projected execution period of ten years, and includes the reform of the 34 machines of the two plants, its automation and a new Generation Operation Center (COG ), as well as improvements in auxiliary services, lifting equipment and spillways. The project, considered the largest in the country, aims to ensure greater reliability and availability of these operations to the National Interconnected System (SIN).

Research and Development (R&D)

In 2018, R$ 8 million was invested in Research&Development (R&D) activities, focusing mainly on projects aimed at creating technical and scientific knowledge to support efficiency gains in the company’s operations, growth in the Brazilian electricity sector and environmental and social projects. Among the themes of the projects are the sterilization of the golden mussels to control the mollusk population (invasive species in the Brazilian rivers); the creation of a pneumatic regulator for the speed of hydroelectric turbines; identification and control of macrophytes; management of fish diversity and valuation of ecosystem services.

Sustainable vision

In order to advance its sustainability strategy, the company, which was already a signatory of the Global Pact, became part of the Brazilian Global Pact Committee, a governance body that gives referrals to the programs in the country. Promoted by the United Nations (UN), this is the largest corporate sustainability initiative in the world.

Engagement with the community

Valuing and strengthening communities close to operations are key issues for CTG Brasil. Therefore, the company carried out activities in the amount of R$ 15.5 million to establish a lasting relationship with the populations of the units’ environments. They focus on topics such as education, culture and sports, and have benefited around 600,000 people during the year.

Environmental Protection

The sustainable use of resources and respect for the environment are the basis of the company’s environmental protection activities. Therefore, we seek to develop actions and programs aimed at protecting biodiversity, restoring natural habitats, preventing pollution and adapting to climate change. In 2018, we released 3.6 million fish fingerlings of native species in the regions of the reservoirs where the company operates to increase the biodiversity and the fish stocks of the rivers.

Environmental education activities and the donation of tree seedlings to owners of the reservoir environment are also among the actions carried out. In 2018, for example, 107,735 seedlings were donated for planting third-party areas in 25 municipalities in the Paranapanema River region and 950 seedlings were planted in the Garibaldi HPP area, in the Canoas River, in Santa Catarina (SC).

2018 in numbers

The hydrology in the reservoir region of the company’s HPPs in 2018 was unfavorable, causing a drop of 1.4% in power generation, which reached 33,948.9 GWh. Even so, the availability rate of the plants was once again above the regulatory limits, a result that mainly reflects the experience, technical capacity and commitment of its teams, the Company’s consistent investment policy and the efficient maintenance program of equipment.

Regarding financial performance, CTG Brasil’s combined net revenue from operations totaled R$ 2.8 billion in 2018 and operating cash generation (EBITDA) was R$ 1.4 billion. The numbers were impacted due to the adjustment in the accounting methodology applied to the Paraná Energia’s financial assets. Normalizing this accounting effect, combined net revenue reached R$ 4.7 billion and EBITDA was R$ 3.2 billion.

To know the 2018 Sustainability Report of CTG Brasil, access www.ctgbr.com.br/relatorioanual2018.