Sustainability Report ENEVA 2020 slide image

Sustainability Report ENEVA 2020

5.1 STRATEGIC MANAGEMENT We act to make the energy transition feasible and ensure the growth of Brazil and of our business in a sustainable and long-lasting manner, promoting value creation in all links of our production chain. In this regard, we have maintained a long-term strategy and challenged ourselves, in 2018, to reach a contracted thermal power generation capacity of 4.7 GW in up to 5 years (by the end of 2023). This target would be reached through the development of thermal power greenfield projects powered by gas or renewable sources, or through assets acquired in mergers and acquisitions. It also considers partnerships with global E&P companies to develop and build thermal power plants powered by natural gas. Already in line with ESG principles, we have also committed to halt any further investments in new coal-fired generation assets. As part of our strategy, in 2019 we restructured our trading business for the qualified and competitive supply of natural gas in customized and integrated solutions of thermal and industrial power generation for consumers who can choose their own supplier. Starting in 2021, we will offer solutions that combine electricity, natural gas, and their liquids in customized products and services. To do so, we mapped out business opportunities and engaged major clients throughout the country, but mainly in the North and Northeast regions, where we already have operations and where the mining, metallurgy, steel, cement, and pulp & paper industries have stood out. With this strategy, we will use our logistical advantage to provide democratic gas supply to regions with less access to it, offering more competitiveness to our future client processes and making natural gas viable as a complementary solution for cleaner energy generation, replacing liquid fuels such as diesel and fuel oil. To achieve this goal, our sustainable development strategy is based on a framework of solid pillars: PEOPLE Our main asset, which is key for us to achieve the goal of becoming the Brazilian Company most admired for its innovation, performance, and people. We have a team of professionals with complementary expertise, qualified to act in the entire value chain, from hydrocarbon exploration to planning and development of fields for natural gas production and design of a competitive strategy for energy trading, and the implementation and operation of power generation plants. eDUC AÇÃO SUST eneva ENTA VEL ENVIRONMENTAL, SOCIAL & GOVERNANCE The key criteria for the achievement of the strategic goals of enabling a clean and stable energy matrix. Conservation of biodiversity and natural resources; preparation for the energy of the future; maintenance of high ethical and governance standards; and development of employees and local communities. FINANCIAL DISCIPLINE ool We raised R$6.8 billion by issuing new debt in 2019/2020, including R$4.0 billion for optimizing existing debt. Strong liability management reflected in the consistent improvement of the debt profile, with the lengthening of maturities and cost reduction. We ended 2020 with leverage (net debt/EBITDA) of 3.3x and an average debt term of 6.0 years. ABOUT THIS REPORT LETTER FROM MANAGEMENT ABOUT ENEVA FIGHTING COVID-19 SUSTAINABILITY REPORT [ENEVA 2020] INTELLECTUAL & ORGANIZATIONAL CAPITAL SOCIAL & MANUFACTURED CAPITAL HUMAN NATURAL CAPITAL RELATIONSHIP CAPITAL CAPITAL FINANCIAL CAPITAL APPENDICES GRI CONTENT INDEX SASB CONTENT INDEX PAGE 31
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