2030 ESG Plan

ESG Plan 2030

To reinforce CPFL Group's commitment to Sustainability and ESG practices, in November 2022, we launched CPFL Energia's "ESG Plan 2030", which provides guidelines and strategies so that we can provide sustainable, affordable, and reliable energy at all times, making people's lives safer, healthier and more prosperous in the regions where we operate. Our goal is to drive the transition to a more sustainable and smart way of producing and consuming energy, maximizing our positive impacts on society.

The content of the Plan is annually updated, aligned with mega trends, strategic priorities and sectorial developments. Currently, ESG Plan 2030 is is composed by 24 commitments, organized into four pillars, which underpin the way we conduct our business and execute our strategy: Renewable and smart solutions, Sustainable operations, Shared value with society, and Safe and reliable performance. After all, for CPFL Energia, in addition to delivering results, it is essential to take care of "how" we deliver them.

Renewable and smart solutions

By 2030, 100% of our power generation portfolio will be renewable. In the segment, this has been our exclusive focus of investments since 2010 and we have taken another step towards a low-carbon economy. Today, we have a structure of hydroelectric plants (HPPs, SHPPs and CGHs), biomass plants, wind farms and a solar plant that already contributes to this emissions profile, and we are investing in  green hydrogen technologies, supported by  R&D ANEEL Program.

Our business model already has a low emissions profile and from 2025 we will be carbon neutral, while continuing our efforts to minimize negative impacts on climate change by reducing our total emissions by 56% by 2030 compared to 2021 emissions.

At the same time, expanding the electrification of the heavy operational technical fleet of distribution, considering trucks with aerial baskets up to 13 meters long, is one of the efforts that contribute to this challenge, and we will continue the studies in electric mobility, started in 2007, to advance even more in this area.

In addition to our activities, we want to support other companies in their decarbonization journey, which is why, through CPFL Solutions, we offer carbon credits, renewable energy certificates (I-RECs) and other integrated solutions to customers. All of this will be carried out together with the strategy to promote and implement smart energy solutions.

Sustainable Operations

In all our operations, we strive for the lowest possible environmental footprint while maintaining high standards of quality and efficiency.

We have continuously advanced in the conscious use of natural resources with structured eco-efficiency actions in our facilities (water, energy, and waste), in addition to the commitment to phase out single-use plastic in our administrative activities.

We will further strengthen the guidelines for action aimed at conserving and enhancing our positive impact on biodiversity. In each action, we first think about how to avoid or minimize risks and negative impacts as much as possible and, in addition to compensation, we look for ways to maximize value creation for the environment and society.

Another important way to promote increasingly sustainable operations is by expanding our operations from the perspective of circularity, with the refurbishment of equipment and the disposal of network components from distribution for recycling or reverse chain. We already have a business structured on the concept of circular economy within the CPFL Group, which has been expanding over the years, and which considerably mitigates our volume of waste in the environment.

Society shared value

We understand that it is essential to generate, in addition to energy, actions of shared value with society and with our value chain. At CPFL Group, we promote a customer-oriented culture, seeking their satisfaction with the quality of energy and service. Nonetheless, our goals go beyond the generation, transmission, distribution of energy and the services we provide.

We believe in the value of diversity and equity we work to create an inclusive culture and increase the representation of society within our teams. This is a constant journey, so we recognize our important achievements, as well as the need to move forward even further together with society.

We want to be part of the solution to the social challenges of communities. Through the CPFL Institute and social and environmental investments in the proximity of operations and in energy efficiency actions aimed at the low-income population, our focus is to maximize local transformation, generating positive and lasting impacts.

We benefit public hospitals that provide essential services to the population, with energy efficiency resources (PEE). We have installed photovoltaic panels for self-generation, more efficient lamps and equipment, in addition to actions aimed at humanizing patient care. The savings on the energy bill can be reverted to improve the provision of health services themselves.

We have also advanced our commitment to supply chain development. Increasingly, we will promote sustainable procurement and value partners aligned with our ESG strategy. By 2030, our goal is to reach at least 85% of our investments with companies that have advanced sustainability practices. We will walk together and, in addition to evaluating, we recognize the companies aligned with our journey.

Safe and reliable business

It is our duty to promote a culture of safety, care for our people and the Community within our concession area.

Our non-negotiable commitment to safety aims to strengthen the culture on the subject to achieve zero fatalities and includes awareness, prevention, and risk reduction projects for all people. Associated with this, we are committed to carrying out actions to promote healthy work environments, with actions aimed at mental health and quality of life, with specific actions for this purpose.

Focusing on risk management related to direct contact with our grid, we invest in projects for awareness and risk reduction to the communities, using relevant programs such as Guardian of Life and Safer Afforestation.

We adopt differentiated corporate governance practices, based on the principles of integrity, transparency, equity, accountability and sustainability. We rely on employee engagement in our Integrity Program, including the application of the principles, guidelines and  our Code of Ethical Conduct, also in practices aimed at security, data protection and implementation of emerging technologies.

Facing more frequent extreme climate events, we have started a strategic project to stablish and integrate climate adaptation plans within our businesses, aiming to strenghten the resilience o four assets until 2030.

Our public commitments

Within the four pillars of the ESG 2030 Plan, we have made 24 voluntary commitments guided by the Company's Strategic Plan and the United Nations Sustainable Development Goals (SDGs). We identify our greatest opportunities to achieve these goals and, thus, enhance them with more relevant action plans and investments. Annually, these commitments are updated during the cycle of preparation of the CPFL Group's Strategic Plan.

Find out here the 24 public commitments in force in 2025:

Image: 2025 update of the 2030 ESG Plan highlighting main current updates.

Learn more about our work in sustainability and ESG practices by clicking here to access our Annual Report and here to learn about our journey against climate change.

_{*For the preparation of the Annual Report, we use the guidelines of the Global Reporting Initiative (GRI), the Value Reporting Foundation (Integrated Reporting), the Sustainable Development Goals (SDGs) and the Principles of the UN Global Compact. Our Report is also presented as a Socio-Environmental Report to the National Electric Energy Agency (ANEEL).}

The evolution of Sustainability at CPFL Energia

CPFL has included Sustainability in its activities for more than 20 years. With the creation of the CPFL Institute in 2003, the specific actions to support the community became structured private social investment programs. In 2013, Sustainability became a driving force in Strategic Planning and, in 2014, the first version of the Sustainability Platform was created, a tool for managing indicators and targets related to CPFL's social, environmental and economic impacts and risks.

With the challenge of strengthening the integration of Sustainability with the Company's Strategy, in 2020 the 2020-2024 Sustainability Plan was created, consisting of 15 public commitments organized into 3 pillars: Sustainable Energy, Smart Solutions and Shared Value. These commitments were quickly achieved, giving room for the creation of a new, more comprehensive and ambitious plan, the ESG 2030 Plan. Built throughout 2022 and aligned with the Strategic Planning roadmap, the new ESG strategy was validated with leadership and internal stakeholders in November 2022. The unfinalized commitments of the 2020-2024 Sustainability Plan have been incorporated into the commitments of the new plan, to maintain continuous operations.

The ESG 2030 Plan entered in force on January 1, 2023, and is updated annually, as part of the Company's Strategic Planning. Its periodic monitoring is carried out by the Sustainability Committee, the Executive Board, the Strategy, Growth, Innovation and ESG Committee and the Board of Directors.

2020-2024 Sustainability Plan Closing

Following our relationship of transparency and commitment to our investors, we present below the closing of the year 2023, reffering to the ESG Plan 2030.