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.
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 review of the Materiality Matrix in 2019 was based on the material aspects determined in 2016 and confirmed whether they are still current, taking into account internal and external views. The assessment of the relevance of the aspects was based on their incidence in stakeholders’ demands, material aspects of other companies of the sector, strategic risks, strategic guidelines, impacts generated; and on the Sustainable Development Goals (SDG). Finally, the executives of Light also attributed a level of materiality to the selected aspects. [GRI 102-46]
The process contemplated three stages. In the identification stage, we mapped the relevant variables/sources and collected information. In the prioritization stage, we compared the 2016 material aspects with the information mapped in 2019, attributed scores for their incidence in the relevant sources, and, finally, we determined the new materiality matrix. The last stage consisted of the validation of Light’s executives, who also attributed a level of materiality to the aspects proposed and presented to the Board of Executive Officers.[GRI 102-46]
The external view analysis was made based on the aspects included in stakeholders demands made to the 11 areas of our company that constantly interact with the external audience. We also referred to the Sustainability Report of companies of the electricity sector for benchmarking purposes.
We took into account the strategic risks matrix, strategic guidelines, impacts of the company, and the Sustainable Development Goals in our internal analysis.
Based on the analysis of data, we noticed that the aspects related to Contingencies, Human Rights and Risk Management, which were not included in the list of material aspects in 2014, were recurring. Accordingly, we revised the list of material aspects and submitted them for a new analysis.
Aspects were prioritized by our executives and, based on the scores attributed to the incidence of each aspect, we determined Light’s new Materiality Matrix, as set forth below:
All aspects mapped in the matrix have some degree of materiality for Light; however, priority issues (included in the upper right-hand corner) are those that affect our activities the most. They are addressed in the 2019 report. [GRI 102-46, GRI 102-47]
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 2019, the same stakeholder groups were analyzed and maintained [GRI 102-40, GRI 102-42].
|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|
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.