Sustainability Report ENEVA 2020

02 LETTER FROM MANAGEMENT [GRI 102-14] JERSON KELMAN CHAIRMAN, ENEVA S.A. 2020 was anything but a normal year. The pandemic had devastating consequences: more than four million people have died worldwide and several hundred million have lost their jobs. The virus has turned the reality of countless companies, employees and their families upside down. At the same time, the pandemic is yet another wake up call for help on improved sustainable development strategies. In addition to the health risks and the fight against hunger and inequality, the major implications of climate change have been given increased priority in the global agenda. Experts agree that the recovery following the pandemic must take into account the ecological limits of the planet. Electricity generation sits at the heart of the transition to clean energy, and therefore is a fundamental element when it comes to addressing climate change, limiting global warming and addressing stakeholders with increased demands for higher ESG standards. Despite the growth and increasing cost competitiveness of renewables, decarbonization still is a multiyear and multi-solution process proceeding at different rates around the world. We still need to develop major technology breakthroughs that will allow us to supply the power grid with clean energy even during windless days, cloudy weather, and nighttime. Potentially, for instance, our path to net-zero carbon electricity generation will also encompass carbon capture and storage (CCS), which separates and permanently stores CO2 pollution from an energy plant's exhaust to keep it out of the atmosphere, and further development of blue and green hydrogen solutions which reduces emissions. Investing in innovation is crucial for reaching decarbonization. Our view is that addressing greenhouse gas emissions by itself won't be enough, especially in the poverty-stricken regions where we operate. We must play a bigger role. Perhaps one of the greatest challenges ahead of us is how to balance the need to eliminate carbon emissions with socio-economic advancement. Recent studies in economics, political sciences and epidemiology clearly demonstrate the interdependence between reducing economic inequality and other SDGs. The destruction of the environment, generally thought as a harm handed down by one generation to the next, also exacerbates social inequalities within generations. A degraded environment therefore has the effect of further widening preexisting imbalances. Especially in developing countries, the relationship between environmental and economic inequalities resembles a vicious circle. The injustice of environmental inequalities mechanically reinforces the injustice of socio-economic inequalities: for example, deteriorating health due to pollution makes the situation of the most impoverished still more precarious and, as a consequence, worsens their position in relation to the rest of society. Preserving the environment while finding solutions that reduce inequalities such as nature-based solutions can have systemic impact at scale. ABOUT THIS REPORT LETTER FROM MANAGEMENT ABOUT FIGHTING ENEVA COVID-19 INTELLECTUAL & ORGANIZATIONAL CAPITAL MANUFACTURED HUMAN CAPITAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL NATURAL CAPITAL FINANCIAL APPENDICES CAPITAL GRI CONTENT INDEX SASB CONTENT INDEX SUSTAINABILITY REPORT ENEVA 2020 PAGE 11

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