Reports

The company’s management focused on sustainability can be seen in the most diverse initiatives. The concern with transparency, objectivity and clarity in communication with all stakeholders and the commitment to ethics and best corporate governance practices are the guarantee of Light’s recognition with the market.

Materiality construction process

The company’s management focused on sustainability can be seen in the most diverse initiatives. The concern with transparency, objectivity and clarity in communication with all stakeholders and the commitment to ethics and best corporate governance practices are the guarantee of Light’s recognition with the market.

Stakeholder Engagement

Since 2009, Light’s Annual Report is written based in its Materiality Matrix, which guides the construction of all the content reported to the electrical sector, the regulatory agencies, and to the society in general. The Materiality Matrix presents the relevant (material) topics that generate value to the company and its stakeholders.

  • In 2009, we identified the impact of each stakeholder, using criteria established by standard AA 1000 – responsibility, influence, proximity, dependence, representation, strategic interaction, and policy – and we completed the engagement process and defined Light’s first Materiality Matrix.
  • In 2010, during the Specialist Panel meeting, which gathered Company representatives and seven specialists, the material topics appointed in 2009 as highly relevant were validated.
  • In 2011, Light revalidated the highly relevant topics during the strategic planning process, reflecting the expectations of the stakeholders in the fronts that guide the entire Strategic Plan.
  • In 2012, we reevaluated the Materiality Matrix, ranking the results into large topics and evaluating if they were considered during Strategic Planning.
  • In 2013, Light confirmed the prioritization of the most relevant issues from the Company’s and stakeholder’s point of view.
  • In 2014, we elaborated the new Materiality Matrix with the objective of making it a benchmark for the basis of business decisions.
  • In 2016, we revisit our Materiality Matrix to align it with current company and stakeholder priorities.
  • In 2019, the Materiality Matrix was revised again, in order to consider the pillars of the company’s Turnaround Plan and the current demands of our stakeholders,

The Materiality Matrix was revised in 2021 in a process led by the ESG+ Committee. [GRI 102-46]

In the first step of the materiality review, the ESG+ Committee incorporated two additional processes to the assessment methodology: online surveys of selected stakeholders, experts, and members of the Board of Directors and Executive Board; and an assessment of topics for relevance to the SASB-recommended disclosures for the Utilities & Power Generators industry.

The materiality assessment in 2021 began with the material topics of the previous Materiality Matrix, which were reviewed and validated by the ESG+ Committee.

The materiality assessment comprised three steps. In the identification step, we agreed on the assessment methodology, identified variables and sources to be considered, and prepared a long list of topics to be assessed.

In the prioritization step, we intersected internal and external perspectives with the long-list material topics, and assigned a score based on how often those topics were mentioned in the sources analyzed. This yielded our new Materiality Matrix.

The last step was validation, in which the prioritized topics were assessed for consistency, mapped to our strategic drivers, and presented to the Executive Board, the ESG+ Committee and, finally, to the Board of Directors for approval.

The diagram opposite illustrates Light’s materiality review process. [GRI 102-46]

 

To gather external perspectives, we surveyed stakeholders on the topics they believe to be material, via 12 communication channels, including a direct survey. In addition, we benchmarked the sustainability reports of companies in the power sector; and we directly surveyed ESG experts, some with expertise in the power sector.

Some of the sources referenced in the materiality review included the following: Strategic Risk Matrix, strategic drivers, impacts on society, the Sustainable Development Goals, and SASB sector disclosures. We also directly interviewed the Executive Board and the ESG+ Committee.

Although all issues identified in the matrix are material to Light to some degree, we selected priority issues—the 10 topics in the upper-right quadrant of the Matrix. [GRI 102-46, GRI 102-47]

 

Identification and interaction with stakeholders

The Light stakeholders were identified in the definition process of their first Materiality Matrix, in 2009, using the methodology developed by the Brazilian Foundation for Sustainable Development (FBDS), who surveyed the Company’s stakeholders with a total of 343 interested parties. The next step was as exercise in prioritization of this public, identifying the impact of each stakeholder based in the following criteria established by the AA 1000 standard: responsibility, influence, proximity, dependence, representation, strategic interaction, and policy. As a result, the final number of prioritized stakeholders was 248, divided into 13 groups: Academics, Class Entities and Associations, Clients, Community, Group Company, Specialists, Financial, Suppliers, Press, NGOs, Partners, Government, and Regulatory Agency. During the revision process of the Light Materiality Matrix, in 2021, the same stakeholder groups were analyzed and maintained [GRI 102-40, GRI 102-42].

Topics Description Stakeholders Involved
Regulation and Public Policies Periodic rate review by ANEEL, during defined period of concession contract. Investors and clients
Perspectives for changes in the participation of renewable energy in the national generation matrix. Group companies and partners, customers, specialist
Improvement in communication and engagement with the final consumer and in customer awareness in relation to electricity use. Customer, community, academy
Expansion of the generation projects and the supply guarantee. Group companies and partners, customers
Energy Efficiency Demand management and other efficiency programs. Regulator, specialists, academy
Commitment to shareholders and creditors, and the strengthening of access to capital markets. Investor
Intensification of the use of technological resources to fight against losses (armoring the grid and installing telemetric devices). Investor
Service quality Power supply quality to end consumer (DEC/FEC). Association and trade associations, customers, community, regulators
Improvement of strategies to prevent commercial losses. Community, customer, regulator, and investor
Light participation in the feasibility of major events for the city . Education and cultural projects that encourage sociocultural development in the concession area. Community
Water Continual development of quality monitoring. Community

The interaction with stakeholders is a continuous process, and is constantly being improved. The following table shows the types of periodic engagement done throughout the year.

Light’s relationship with stakeholders [GRI 102-43]

Stakeholders Types of Engagement Objective Frequency
Shareholders and the Financial Market Ordinary General Meetings Highest decision making body Acts as a forum for decisions among various shareholder. Annual
Meetings of the Board of Directors Deliberate on issues related to the company. Monthly
Executive Board Meetings Accompany the execution of the strategy approved by the Board of Directors, directly managing the business Weekly
Meetings with investors and analysts Present company information in a transparent manner. At least annual
Clients Consumer Board Gather representatives of all  of the classes of clients to ensure an alignment with the community’s needs. Six annual meetings
Social Media (Twitter, Facebook) The Company has invested strongly in a multiplatform channel to relate and dialogue more and more with consumers. Daily update
Labor Force Management meetings Share knowledge about the actions of the company and the monitoring of the action plan for the entire management team, including coordinators. Organized by upper management. Quarterly
Commissions and GTs Gather managers and employees to discuss specific topics. According to demand
Suppliers Interaction channels Meetings, workshops, visitors, training, participation in conferences and tradeshows and campaigns with specific topics, such as Work Safety. Monthly
Regulatory Agency Meetings with ANEEL Meetings with the regulatory agency to deal with contractual, regulatory, and strategic aspects. According to demand
Trade Associations and Unions Meetings with ABRADEE, ABRAGE, ABCE, APINE Seek partnerships through participation in various committees. At least one annual meeting for each GT
Community Meeting with home association groups Survey needs and expectations of surrounding communities. According to demand At least one meeting in each community at the beginning of the activities.
Government Authorities Participation in sector specific forums Analyze and influence the development of legislation an d sector specific regulation. According to demand
Academia Research and Development Projects During the project selection process and their execution, Light interacts with universities and research centers, and also participates in discussion forums. Monthly

 

Annual Reports

Other Reports

We highlight the adhesions to the BM & FBovespa and the CDP ; accountability made in accordance with the guidelines of the Global Reporting Initiative (GRI ) and participation in portfolio companies of the group’s Corporate Sustainability Index ( ISE) of BM & FBovespa.

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