Light

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Materiality construction`s process

Stakeholder Engagement

Since 2009, Light's Sustainability 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.

The review of the Materiality Matrix in 2016 was based on the material aspects determined in 2014 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. [G4-18]

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 2015 material aspects with the information mapped in 2016, 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. [G4-18]

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 Ethics/Compliance, Biodiversity, and Public Lighting, 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 2016 report. [G4-18, G4-19]

 

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 2016, the 13 stakeholder groups were analyzed and maintained [G4-24, G4-25].

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. Distributed generation and smart grid. 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 non-technical losses, expanding the availability of energy and reducing tariffs for low-income customers (exp. Light Legal) Community, customer, regulator, and investor
Light participation in the feasibility of major events for the city (exp. World Cup, Rio 2016). Education and cultural projects that encourage sociocultural development in the concession area (exp. Favela Criativa (Creative Favela). Community
Water Continual development of quality monitoring for the water supply for Rio de Janeiro. 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 [G4-26]

Stakeholders Types of Engagement Objective Frequency
Shareholders and the Financial Market General Assembly Highest decision making body Acts as a forum for decisions among various shareholder groups. Annual
Meetings of the Board of Directors Gather shareholder representatives to determine company related issues. Monthly
Executive Board Meetings Accompany the execution of the strategy approved by the Board of Directors, directly managing the business Weekly
APIMEC Meetings Present company information in a transparent manner. Quarterly
Clients Consumer Board Gather representatives of all  of the classes of clients to ensure an alignment with the community's needs. Six annual meetings
Business Meetings - Large Customers Strengthen the relationship with various segments of large industrial customers, both corporate and government. Annual
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, distribution of the corporate newspaper, 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

Sustainability Reports

Previous Years

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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