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 intelligent way of producing and consuming energy, maximizing our positive impacts on society.
The ESG 2030 Plan is composed of 23 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 studying the feasibility of green hydrogen technologies for our business.
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, considering trucks with aerial baskets, 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.
The digital connectivity between people and equipment, provided by the evolution of technologies, has led to a paradigm shift and transformations in the electricity sector and, in this sense, we have invested significantly in expansion, automation, modernization and innovations aimed at greater efficiency, quality and robustness of the grid, which also contributes to our objectives of mitigation and adaptation to climate change.
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 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. But 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 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 will develop and 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 responsibility.
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.
We adopt differentiated corporate governance practices, based on the principles of transparency, equity, accountability, and responsibility. We rely on employee engagement in our Integrity Program, including the application of the principles, guidelines and guidelines of our Code of Ethical Conduct, and in practices aimed at security and data protection.
Our public commitments
Within the four pillars of the ESG 2030 Plan, we have made 23 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 23 public commitments in force in 2024:
Image: 2024 revision of the 2030 ESG Plan
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 is composed of 23 commitments, organized into 4 pillars: Renewable and Smart Solutions, Sustainable Operations, Shared Value with Society, and Safe and Reliable Performance. It entered into 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.
Commitment ESG Plan 2030 |
Closing Status 2023 |
1. Generate 100% renewable energy by 2030. |
95.84% of the installed capacity is made up of renewable sources. |
2. Be carbon neutral from 2025¹, reducing 35%² of scope 1, 2 and 3 emissions by 2030. |
53.35% reduction in scope 1, 2 and 3 emissions compared to the base year 2021. Emissions neutralization will occur from 2025. |
3. Provide low carbon solutions to our customers, with annual revenue targets for I-RECs and carbon credits. |
The sales volume of decarbonization solutions, such as carbon credits, was below what was planned for 2023. We are following market advances and seeking the best operating strategies for 2024. |
4. Achieve at least 15% electrification of the Operational Technical Fleet of the State of São Paulo³ by 2030. |
100% of the operational technical fleet in the municipality of Indaiatuba (SP) is already electrified. The fleet decarbonization plan was approved by the Board of Directors in 2023. |
5. Invest at least R$ 40 million in green hydrogen technologies by 2030. |
In 2023, investment to enable green hydrogen technologies totaled R$ 740 thousand. |
6. Reach at least R$ 560 million in investments in smart energy solutions by 2027. até 2027. |
In 2023, total investment in smart energy solutions was R$ 150.8 million. |
7. Consolidate CPFL's eco-efficiency management program, establishing goals until 2024 to promote conscious consumption of energy and water, and reduce the sending of waste to landfills4. |
Water and energy consumption and the generation of common waste were monitored throughout 2023 to create the baseline that will support the eco-efficiency management program in 2024. |
8. Phase out single-use plastics in our administrative units by 2025. |
In 2023, we mapped the plastics to be eliminated, structured the baseline and planned action plans. |
9. Create CPFL's Biodiversity Positioning by 2025 to maximize the benefits and value generated by our operations for the environment and society. |
We progress according to the planned schedule for structuring processes that will support the policy and quantify positive impacts on biodiversity. |
10. Refurbish at least 70,000 electrical network equipment5 by 2030. |
12,100 pieces of equipment were renovated at the CPFL Serviços Renovator in 2023 alone. |
11. Ensure 100% of the network’s main components destined for recycling or reverse chain systems. |
In 2023, 100% of the main components (aluminum, iron, copper, steel, plastic, porcelain) were destined for recycling or reverse chain systems. |
12. Invest at least R$ 230 million in socio-environmental projects that maximize the transformation in the community by 2030. |
The investment made in 2023 totaled R$ 52.7 million, almost 30% above the target established for the year. |
13. Invest R$ 140 million in energy efficiency initiatives in public hospitals by 2025. |
R$ 61.8 million was invested in energy efficiency actions, benefiting 81 hospitals with completed projects and 52 more in progress. |
14. Reach 30% women in leadership positions by 2030 and continually work to increase diversity and representation. |
We ended 2023 with 21.79% of leadership positions occupied by women, below the objective set for the year (22.22%). Even so, we achieved a 3.5% increase in the representation of women in leadership compared to the previous year. |
15. Assess 100% of critical suppliers in sustainability criteria6 and achieve at least 85% of our spending7 with companies that present advanced practices in sustainability by 2030. |
90.4% of critical suppliers were evaluated based on sustainability criteria in 2023 and 59.7% of expenses were directed to suppliers with advanced sustainability practices, in line with the goal established for the period. |
16. Maintain at least 90% of attendance by digital channels. |
90.3% of services were provided through digital channels. |
17. Sustain at least 1 distributor among the top 3 in the ANEEL Customer Satisfaction Index – IASC. |
2 distributors (CPFL Santa Cruz and RGE) were ranked among the top three in the IASC in 2023. |
18. Strengthen the safety culture to achieve zero fatalities, reduce the frequency and severity rate of accidents involving employees and service providers. |
Despite great progress in strengthening the safety culture, we did not reach one of the four targets established for workforce safety indicators. |
19. Invest R$ 50 million in awareness and risk reduction projects8 for the population by 2030. |
We invested R$ 3.9 million in the Arborização + Segura program and R$ 3.4 million in the Guardião da Vida program in 2023. |
20. Promote a healthy work environment, increasing awareness of mental well-being and establishing supportive actions for our employees. |
In 2023, we created the Mental Health Group and joined the Mind in Focus movement, promoted by the UN Global Compact. |
21. Ensure 100% of employees9 trained in the Company's Integrity Program. |
100% of professionals were trained through e-learning training. |
22. Train 100% of administrative employees¹° in security and data protection. |
100% of professionals were trained through e-learning training |
23. Continuoulsy pursue the best practices of accountability, transparency, fairness and responsibility. |
In 2023, we made progress in evaluating and identifying opportunities for improvement related to our accountability, transparency and corporate responsibility practices. |