The SGS Group has developed a set of Sustainability Assurance Communication protocols based on best practices provided in Global Reporting Initiative (GRI) guide and the NBC TO 3000 assurance standard. These protocols are different options of assurance level, depending on context and capability of Claimant Organization.

This report was assured through our protocols to assess content legitimacy and its alignment to Sustainability Report Preparation Guide (G4 2013), and it has demonstrated a limited level. The assurance has covered a combination of previous investigation, interviews with strategic employees, review of documents, records and data and assessment of report for alignment with GRI protocols. The Tractebel accounting information and/or referred to “RS 2015” was not assessed as integrating part of this assurance process.

STATEMENT OF INDEPENDENCE AND COMPETENCE

The SGS Group is a worldwide leading organization in inspections, analysis and verifications, operating in more than 140 countries and service provision, including management system certification, audit and capacitation in quality, environmental, social and ethical areas, assurance of sustainability report and verification of greenhouse gases. SGS reinforces its independence from Tractebel and is exempt from interest conflict with organization, its subsidiaries and stakeholders.

The assurance team was made based on members’ knowledge, expertise and qualification to this service; it was composed of:

ASSURANCE OPINION

Regarding the methodology provided and verification performed, we have not found any circumstances indicating the information and data provided in RS 2015 are not reliable nor characterize a fair and balanced representation of Tractebel’s sustainability activities in 2015. The assurance team concluded the report can be used by Tractebel stakeholders. We believe the organization has chosen the appropriate assurance level to its needs.

In our opinion, the report content meets the GRI G4 requirements, including some indicators specific to the Electric Segment G4 with Essential Option.

RECOMMENDATIONS, FINDINGS AND CONCLUSIONS OF GLOBAL GUIDELINES OF GLOBAL REPORTING INITIATIVE GRI G4

Tractebel’s Sustainability Report 2015 is properly aligned with GRI G4, Essential Option. The substantial aspects and its limits inside and outside the organization. In general, they were properly defined in accordance with GRI Report Principles, there is no information that might be evidenced. It is important to highlight the involvement and initiative of Tractebel’s team to make the Report and provide promptly the information requested by assurance team.

Some opportunities to improvement were found, so that the Tractebel’s sustainability report may reach higher levels:

  1. a.As usual, Tractebel uses the same text of “Top Management Statement”, both in Top Management Report, Accounting Statement and Sustainability Report, it is recommended the strengthening the top management opinions of company regarding this matter, as well as company strategy for sustainability matters.
  2. b.To harmonize the environmental guidelines of company provided in previous sustainability reports with those from other company’s internal documents.
  3. c.To enhance the materiality process used as Report base, implementing more frequent consult with company’s target audience, by using the current communication mechanisms and interfaces.
  4. d.It is recommended a more teaching explanation of the terms and technical thinking that are usual in electric energy segment but too far from reality of this segment in order to understand them better. For example, it would be good to explain how the variation of coal used in thermal-electric plants impacts on its heating power and, therefore, the efficacy of plant producing energy (indicator G4-EN6).
  5. e.For sustainability reports, which is the instrument used by different stakeholders of company, the proper behavior is not to assume the prior knowledge of the content required in GRI indicators by the writers. Therefore, as example, even if Tractebel does not use PCB/ascarel on its process, it is important to state that this aspect so that the reader realizes the sectorial indicator of G4-EN23 is met.
  6. f.It is also recommended that all premises used by organization to report an indicator are indicated clearly, so that the reader can understand the information fully. One example is the note of risk exposure which Tractebel considers that, for certain functions, all hour worked should be considered as risk exposure.
  7. g.Due to relevance of sustainable development in Brazil, it is recommended that during the next editions, Tractebel shall report the indicators G4-SO3 to G4-SO5 that address the issues against corruption.

Despite of process quality of Report elaboration and finished product provided, it is necessary to consider the following items as to the information made available in report, in order to contribute to its enhance and completion and contribute to transparence required to readers:

  1. a. The late renewal of environmental license for PCH Areia Branca is due, not only to internal reasons of Regional Environmental Superintendence of Minas Gerais (Supram/MG), regulator in charge of, but also the performance of legal term to request the said renewal by Tractebel, as set forth in legislation in effect.
  2. b. Despite of the company present the total quantity of water caught per source as provided in indicator G4-EN8, it is still required to indicate the water volume used by thermal-electric plant per source, so the indicator could be considered attended.

 

Executed by and on behalf of SGS

Marcelo Abrantes Linguitte e Fabian Peres Gonçalves
Lead Auditor and Sustainability Report Auditor
SGS ICS Certificadora Ltda.
April 20th, 2016
www.sgs.com