26.10.2022
The company’s result was 20.1% higher than in 2020; Annual Sustainability Report 2021 shows advances in ESG and innovation
CTG Brasil, one of the leaders in clean energy generation in Brazil, ended 2021 overcoming the challenges of the previous year, such as the water crisis, exchange rate instability, escalating inflation and the second wave of the pandemic, by recording a Net Operating Revenue of BRL 6.3 billion, 20.1% higher than in 2020. In addition to the good financial result, the company made important advances in its Sustainability (ESG) and innovation strategy. These informations is in the company’s 2021 Annual Sustainability Report, available at (link).
In 2021, Net Income was R$1.7 billion, a 2.0% decrease compared to the previous year. EBITDA recorded BRL 4.2 billion, 9.5% lower than 2020, and the company’s operating costs and expenses reached BRL 2.8 billion, an increase of 134.0% compared to 2020. For Zhao Jianqiang, CEO of CTG Brasil, the commercial strategy of anticipating purchases and keeping part of the uncontracted energy was fundamental to achieve positive results in the period.
Also in the last year, a strategy by CTG Brasil to expand its generation portfolio in renewable sources began to become a reality. The company has structured a time for the development of projects in this area and is evaluating investments aimed at resources in wind and solar energy in the country. “The wind and solar sources company complements hydroelectric power generation and makes the service offer more accessible and adapted to the customers’ consumption profile, increasing the positive impact of CTG’s business in the country”, Zhao.
ESG guides the company’s strategic objectives
In 2021, CTG Brasil conducted a maturity study of its management on aspects of corporate sustainability and defined short, medium and long-term objectives and goals. The company wants to develop in key themes to elevate its practices to the best levels and highlights the leadership’s commitment to the theme.
Among CTG Brasil’s strategic goals in ESG are advances in topics such as: climate change and energy transition; impacts on water resources; preservation of biodiversity; safe, healthy and diverse work environment; impact and local development; corporate governance and sustainable value chain. By 2023, the company wants to reach the managerial level in all areas; and by 2030, achieve a leadership role on climate change.
Also in 2021, CTG Brasil became the first Brazilian company in the electricity sector to certify 100% of its operations in the ISO 9001 (quality), ISO 14001 (environment), ISO 45001 (health and safety) and ISO 55001 (assets management), an important step in the search for excellence in its operations.
The company monitors almost 8,500 kilometers of reservoir edges – a distance equivalent to the Brazilian coast – to ensure adequate environmental conditions for operations. About 3.6 million juvenile fishes have already been released into the reservoirs and more than 350,000 seedlings are destined for reforestation plantations. In 2021, the company planted and managed 186.3 hectares in the process of restoration, an increase of 19.4% over the previous year. In environmental management, investments amounted to R$ 16 million.
For the second consecutive year, CTG Brasil neutralized 100% of the direct greenhouse gas (GHG) emissions from its operations through the acquisition of credits from the REDD + JARI AMAPÁ Project. Once again, the GHG inventory was carried out in accordance with the Gold Seal standard of the Brazilian GHG Protocol Program, which attests to the submission of data to independent verification and brings more reliability to the numbers calculated and disclosed.
Part of the social investments in 2021 were directed to the “Usina de Negócios” program, which focuses on generating income and socioeconomic development in regions close to the hydroelectric plants operated by the company and the goal is to replicate the initiative next year. CTG Brasil also carried out the 2nd Public Notice for Incentivized Resources for Local Development in partnership with Prosas (a platform for selecting and monitoring social projects) to encourage the development of the power plants’ regions of influence. There were 161 projects registered, 19 approved and R$ 11.3 million allocated.
Innovation supports the energy transition and others initiatives
Investments in innovation totaled BRL 23.8 million in 2021, exceeding the regulatory obligation by 46%. Part of the resources were directed to the company’s growth through portfolio diversification and complementarity of generation sources. One of the highlights was the Green Hydrogen Strategic Mission, the largest public call ever held in Brazil for innovation projects in this area. The public notice received applications from 31 projects, from 13 different states, and three were selected to receive support.
In partnership with the National Service for Industrial Learning (SENAI), CTG Brasil inaugurated the Innovation Habitat at the SENAI Institute for Innovation in Renewable Energies (ISI-ER), in Natal, and has the CTG Brasil Innovation Hub in São Paulo.
With an investment of BRL 1.6 million, the partnership with ACATE was renewed to maintain the Digital Innovation Lab, which works as a connection to the startup ecosystem. The priority will be to accelerate the company’s digital transformation. Corporate communication, commercialization and technology projects have already been developed in recent years. “Our innovation and research and development (R&D) strategy is focused on operational excellence and asset management, new opportunities and business models, and to support our growth with a focus on 100% renewable energy,” says Zhao.
