Materiality
Copel’s Materiality Report identifies, analyzes, and prioritizes the issues most relevant to the Company. Copel considers economic, environmental, social and governance (ESG) impacts and assesses how each issue contributes to value creation in the short, medium, and long term.
The company conducts the materiality assessment every two years and performs annual reviews to keep the issues up to date in light of the global and local context. In this way, Copel ensures that its decisions are more strategic and aligned with best market practices.
At the end of the process, the Company submits the material issues to the Board of Directors (CAD), ensuring alignment with the highest standards of corporate governance.
The results of the materiality assessment directly guide strategic planning, the management of risks and opportunities, and the preparation of the Integrated Report.
Materiality Process
The Sustainability Office leads Copel’s materiality assessment process, aligning it with the guidelines of the Global Reporting Initiative (GRI Standards) and the framework of the International Integrated Reporting Council (IIRC). In addition, the Company incorporates recognized ESG methodologies, such as SASB and IFRS S1 and S2, considers market-based sustainability assessments, and integrates the Sustainable Development Goals (SDGs) to strengthen its strategy.
For the 2025–2027 cycle, Copel structures the materiality process into six main stages:
- Identifies stakeholders;
- Selects relevant topics;
- Conducts stakeholder consultations;
- Analyzes the collected data;
- Develops materiality matrices;
- Submits the results to senior management for approval.
The Company identifies and prioritizes its stakeholders based on the AA1000AP (AccountAbility Principles, 2018) and AA1000SES (Stakeholder Engagement Standard) guidelines. This group includes the workforce, customers, governments and public authorities, regulatory agencies and industry associations, labor unions and professional associations, suppliers and partners, society, shareholders and lenders, corporate affiliates, senior leadership, and communities. This mapping reflects Copel’s extensive network of relationships.
Copel identifies relevant issues through a combined analysis of ESG methodologies, sustainability assessments, and benchmarking against domestic and international companies in the utilities sector. As a result, the Company selects 30 relevant issues and submits them for validation by stakeholders.
The latest materiality process represents a significant leap forward for Copel. First, it was one of the largest consultations with internal and external stakeholders (groups that impact or are impacted by Copel, such as customers, employees, suppliers, investors, and others) ever conducted by the Company. There were 6,905 participants from various segments, with Copel’s customers standing out: 3,595 respondents, representing 276 municipalities in the state of Paraná.
In total, 9,266 respondents participated in the consultation, which was conducted using structured and segmented questionnaires. This process ensures the representativeness and comparability of the data. With strong internal mobilization and support from across the company, Copel has carried out its largest materiality consultation to date.
| Stakeholders | 2021 | 2023 | 2025 |
| Workforce | 150 | 1,755 | 2,299 |
| Senior Management | 5 | 18 | 24 |
| Government and Public Authorities | – | – | 68 |
| Regulatory Agencies and Industry Associations | 0 | 9 | 10 |
| Corporate Affiliates | – | 10 | 7 |
| Labor Unions and Professional Associations | 0 | 0 | 4 |
| Customers | – | 3,595 | 6,029 |
| Community | 0 | 25 | 87 |
| Suppliers and Partners | 0 | 314 | 255 |
| SociedadeSociety | 0 | 35 | 59 |
| Shareholders and Lenders | 5 | 552 | 424 |
| TOTAL | 9,266 | ||
Based on its data analysis, the Company develops three materiality matrices: traditional, stakeholder-based, and dual materiality. This approach provides an integrated view of ESG impacts and financial risks. Copel assesses issues based on dual materiality, considering their importance to stakeholders and their financial impacts on the business. It then organizes the issues into strategic clusters:
- Governance and Regulatory Environment
- Performance and Strategy
- Customer Relations
- Environmental Responsibility
- Society and Engagement
- People Management, Health, and Safety
- Climate and Business Sustainability
- Innovation, Transformation, and Digital Security
The criticality analysis highlights Customer Relations and Innovation, Transformation, and Digital Security as the most critical themes, as they have a high financial impact and are highly relevant to stakeholders. Next, Society and Engagement, Performance and Strategy, Governance and Regulatory Environment, and Business Climate and Sustainability demonstrate high relevance and significant impact. People Management, Health, and Safety, on the other hand, are moderately critical, while Environmental Responsibility, although relevant to stakeholders, has a lower financial impact.
Copel integrates materiality into its risk and opportunity management, identifying critical factors that may impact its financial results, such as climate change, operational safety, digital transformation, and the resilience of the electricity sector.
Thus, the materiality process is established as a strategic tool that guides decision-making and strengthens the Company’s ESG management.
Double Materiality
Copel applies the concept of dual materiality in line with best market practices, integrating the analysis of ESG aspects with its financial impacts. With this approach, the Company strengthens its corporate strategy and improves risk management.
For the current reporting cycle, Copel has identified 30 material subtopics, assessing different levels of criticality for the business. To facilitate practical application, the Company organizes these subtopics into eight strategic groups, in accordance with GRI guidelines:
1. Customer Relationships
Copel ensures the reliable, safe, and affordable delivery of electricity, including to vulnerable populations. The Company continuously improves service quality, increases customer satisfaction, and strengthens relationships through efficient service, value creation, and competitive terms.
Related SDGs: 7, 9, 10, 11, 16
2. Innovation, Transformation, and Cybersecurity
Copel develops and adopts innovative solutions, integrating digital technologies into its processes, products, and services. The company increases operational efficiency, improves service quality, and expands the use of technologies applied to the electricity sector. In addition, it protects systems, networks, and data against cyber risks and ensures the privacy of information in accordance with current legislation.
Related SDGs: 4, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17
3. Society and Engagement
The Company promotes human rights and ensures fair and dignified conditions for all people affected by its operations. Copel maintains a transparent relationship with communities and stakeholders, promotes ongoing dialogue, and creates shared value. It also works to prevent risks to the population related to its services.
Related SDGs: 4, 5, 7, 8, 10, 11, 16, 17
4. Performance and Strategy
Copel seeks sustainable economic and financial results through the efficient use of resources, cost reduction, and increased productivity. The company identifies new business opportunities, makes investments aligned with ESG criteria, and strengthens sustainable supply chain management, creating long-term value.
Related SDGs: 1, 2, 7, 8, 9, 11, 12, 13, 15, 16, 17
5. Governance and Regulatory Environment
Copel adopts ethical, transparent, and responsible practices, ensuring compliance with legal and regulatory standards. The Company prevents fraud, manages risks, and maintains active relationships with government agencies and regulators. It also participates in advocacy initiatives to improve the regulatory environment and support sustainable public policies.
Related SDGs: 3, 4, 5, 7, 8, 9, 11, 12, 13, 15, 16, 17
6. Climate and Business Sustainability
Copel anticipates and responds to the impacts of climate change, including extreme events that affect infrastructure and energy supply. The company drives the energy transition, expands the use of renewable sources, and reduces greenhouse gas emissions, ensuring the sustainability of the business.
Related SDGs: 7, 9, 11, 13
7. People Management, Health, and Safety
The Company promotes a safe, healthy, and inclusive work environment. Copel prevents accidents, cares for the physical and mental well-being of its employees, and invests in professional development. It also strengthens diversity and inclusion initiatives to value different profiles and drive organizational performance.
Related SDGs: 3, 4, 5, 8, 10
8. Environmental Responsibility
Copel manages its environmental impacts, preserves biodiversity, and promotes the efficient use of natural resources. The Company adopts practices to ensure environmental compliance, reduce impacts, and continuously improve its performance. It also encourages eco-efficiency and sustainability in its operations.
Related SDGs: 6, 7, 11, 12, 13, 15
Dual Materiality – Criticity Chart
Legend
- Governance and Regulatory Environment
- Performance and Strategy
- Customer Relations
- Environmental Responsibility
- Society and Engagement
- People Management, Health, and Safety
- Business Climate and Sustainability
Innovation, Transformation, and Digital Security
All are highly relevant, but the closer a group is to the upper-right corner (or the darker the shade of blue), the more significant its relevance is—both for stakeholders and in terms of financial impact.
