Materiality

The Company’s Materiality process is developed based on the survey and processing of data on issues relevant to Copel (Holding Company) and its wholly-owned subsidiaries, with the approval of the Board of Directors, whose result serves as support for the preparation of the Strategic Planning and the Integrated Report, being, therefore, fundamental to the conduct of the Company’s business, in addition to considering the Sustainable Development Goals (SDGs).

Copel uses the guidelines of the Global Reporting Initiative (GRI) to prepare its performance indicators related to sustainability practices, and the methodology of the International Integrated Reporting Council (IIRC) to structure its Integrated Report.

Both methodologies are considered best practice in stakeholder accountability and are widely used by companies that report on economic, environmental, social, and governance aspects. As part of the preparation process of these types of reports, the materiality process is presented within these methodologies in a similar manner, and its result is the backbone of Copel’s Annual Reports.

According to GRI, material topics are those considered important because they reflect the organization’s economic, environmental, and social impacts, or influence the decisions of stakeholders. The prioritization (stakeholder expectations x company impact) of these relevant topics results in the Company’s material topics. The main criterion, therefore, for defining material issues is impact, and the defining characteristics are frequency and severity.

The IIRC approach is broader, that is, the material issues are those that affect the organization’s ability to generate value from its capitals (financial, manufactured, intellectual, human, social and relationship, and natural). The prioritization of the themes is carried out with the analysis of the magnitude of their effects, which results in the Company’s material themes.

Copel’s Materiality Reports are prepared based on available methodologies, as well as on studies about the recurrence of the material themes reported by the most relevant companies in the sector, both in the domestic and foreign markets.

It is worth mentioning that Copel periodically reviews the materiality matrix in order to identify the most relevant topics for the Company and its subsidiaries, according to the context of the electricity sector, global trends, and the economic and social scenario.

Materiality Materiality Report

Copel’s Materiality Reports are prepared based on several available methodologies, as well as on studies on the recurrence of the material themes reported by the most relevant companies in the sector, both in the domestic and foreign markets.

The material issues for Copel, relevant to the activity and the stakeholders, are used as a basis for performance reporting at each cycle and also as support for the Strategic Planning process, and are therefore fundamental for the Company’s business.

It is worth mentioning that Copel periodically reviews the materiality matrix in order to identify the most relevant themes for the Company and its subsidiaries, according to the context of the electricity sector, global trends, the economic and social scenario.