Key Indicators and Goals
The indicators and goals adopted by Copel for management monitoring can be seen in greater detail in the Company’s Integrated Report and in the social-environmental reports of the wholly-owned subsidiaries and are related to corporate governance, sustainability management and human, intellectual, social and relationship, natural, infrastructure, and financial capital.
Copel’s set of goals follows the guidelines of its Strategic Planning and the list of goals is unfolded from the strategic objectives, reaching the organizational structures vertically and horizontally, when pertinent, integrating the areas for joint achievement. The analysis of the targets through the indicators allows the company to establish levels of performance and desired results.
Thus, management contracts are prepared that express the targets broken down for each area and, subsequently, each employee will be aware of the goals under the responsibility of his/her unit.
In addition, Copel seeks to establish goals aligned with voluntary commitments such as the Sustainable Development Goals (SDGs) prioritized by the Brazilian Electric Power Sector, for which action plans and goals are being defined according to Copel’s specificities.
Environmental Dimension
Copel’s environmental goals are stipulated by means of commissions composed of representatives from the Company’s executive boards and are developed based on the company’s history, seeking the best use of resources, minimizing impacts and taking into account the economic analysis.
Each commission defines the values, the term and the manner of conducting these goals, which are submitted for approval by the Company’s top management, with periodic monitoring of performance and are valid for all processes and are related to the performance of employees and the management.
The main directions for the goals are the Sustainable Development Goals (SDGs) and the best market practices.
In order to monitor good practices and the quality of environmental management, Copel adopts a series of indicators, which are periodically monitored by the Company’s environmental areas, among which the following stand out:
- Atmospheric and greenhouse gas (GHG) emissions;
- Waste;
- Consumption of natural resources (eco-efficiency: water, energy, fuels, paper);
- Environmental monitoring (ichthyofauna, effluents and vegetation)
Indicator - Native vegetation cover in APPs of reservoirs
The coverage of the Permanent Preservation Areas (APPs) with native vegetation provides environmental benefits such as the conservation of biodiversity, maintenance of ecological processes and ecosystem services, contribution to the gene flow of flora and fauna by increasing connectivity between fragments and forest clumps, in addition to acting to combat the impacts of climate change.
Copel manages the APPs of all reservoirs of enterprises that belong 100% to the Company and defined as an environmental performance indicator the percentage of areas, subject to restoration, with coverage of native vegetation in relation to the total area of APPs. The analysis of the vegetation cover is performed annually based on images and periodic inspections that indicate the most appropriate corrective actions for forest restoration, in accordance with the goals of SDG 11, 13 and 15.
Copel’s goal for 2023 is to reach 82% of coverage with native vegetation in areas of permanent preservation around the Company’s reservoirs.
Indicator - Scope 1 Emissions
Considering that Copel has made a commitment to set targets to significantly reduce GHG emissions, targets were set for the Company’s businesses as well as its interconnection of processes, which were established adopting the SBTi (Science-Based Targets) precepts that correspond to the practices to be adopted for companies that are engaged with Net Zero commitments. The main targets are related to the decarbonization of the generation matrix, fleet, land use change and SF6.
Copel’s Carbon Neutrality Plan aims, by 2030, to neutralize Scope 1 Greenhouse Gas (GHG) emissions for the assets that Copel has operational control, through the reduction and compensation of residual emissions, in line with the targets of SDGs 7, 11, 12 and 13.
Copel’s target for 2023 is a 20% reduction (compared to 2017) in scope 1 emissions.
Indicator - Electric Vehicle Fleet
The actions of the Eco-efficiency Programme aim at the reduction of consumption of natural resources, the awareness of its collaborators and the reduction of costs, as a matter of education, respect for the environment and concern with future generations.
The operational fleet generates negative impacts to the environment, due to its emission of greenhouse and atmospheric gases. Thus, the Company approved the modernization of its light fleet with the replacement of combustion vehicles by electric vehicles, in accordance with the goals of SDGs 9, 11, 12 and 13. This action will help reduce direct emissions of Copel (Scope 1), collaborating to achieve carbon neutrality in 2030.
Copel’s goal for 2025 is to replace 15% of the light fleet vehicles.
Indicator - Renewable Sources Generation Matrix
The Company stimulates research, development and innovation, seeking solutions that contemplate the adaptation to climate change and the reduction of emissions in the operation and expansion of its business.
In order to grow in a sustainable manner and aligned with discussions about the challenges related to climate change, Copel has increased investments in alternative sources of energy generation.
Copel’s electric power generation matrix is 94% from renewable sources, mostly from hydraulic sources.
Copel’s goal for 2023 is to reach 95% of its matrix of renewable generation.
Indicator - Waste Disposal Rate
Copel follows the guidelines of the National Solid Waste Policy – PNRS (Law 12.305 of 2010) and is committed to solid waste management in each of its units through Solid Waste Management Plans – PGRS. With the main objective of reducing the environmental impact of its activities, an order of priority is followed in the management of the Company’s waste: first avoid the generation of waste whenever possible; then reduce the amount of waste generated; then reuse and recycle as much as possible; then ensure the correct treatment of waste and, finally, always dispose of it properly.
One of the indicators defined to measure Copel’s environmental performance is the Operational Units Waste Disposal Rate. This rate represents the total waste that is diverted from final disposal, going to recycling, co-processing, composting and disposal, and is aligned with the goals for achieving SDG 03, 06, 11, 12 and 13.
Copel’s goal for 2023 is that 76% of the waste generated is diverted from final disposal, maximizing the benefits for the environment, the economy and society as a whole and contributing to a more sustainable future.
Social Dimension
Copel’s performance in the social dimension is measured by a series of indicators and targets established between the areas and senior management, with the purpose of ensuring compliance with current legislation, sustainability in all its dimensions – social, economic and environmental; and to value the Company’s intangible assets.
Among the aspects related to people management, we highlight the satisfaction of employees, the benefits granted above the market average as a way of attracting and retaining talents, valuing their workforce; personal and professional development, respect for diversity and encouraging equity, promoting accessibility and a commitment to health and safety at work.
Each area of the company establishes its indicators and goals annually, and currently these results are linked to an individual development plan, which can result in variable benefits granted by the company to its employees.
The actions with the community, the volunteer program, social investments and the expansion of access to energy with all the quality and security that Copel provides, give the company a prominent role in the sector, whose evaluation of consumers guarantees successive recognition and they mark the excellence of performance.
Copel is proud to be the first company in the energy sector to adhere to the United Nations Global Compact and aligns its indicators and targets with the Sustainable Development Goals (SDGs), providing clean and affordable energy, striving for decent work, ensuring economic growth, investing in innovation, expanding and improving infrastructure, reducing inequalities, helping communities and cities to be more sustainable and combating climate change.
Indicator - Evaluation of Employee Performance
The performance evaluation of Copel’s employees is carried out by Programa Nossa Energia, structured and consolidated in the Company, which contributes to the development of the employees’ potential, according to the goals of SDGs 4, 8, 10 and 12.
The current model of Copel’s Performance Management covers all the employees of Copel, except those on leave, admitted/reinstated or removed, according to the period established by the rules of each evaluation cycle. Thus, the goal is to evaluate 100% of eligible employees in the period.
Copel’s goal for 2023 is to evaluate 100% of the eligible employees by the rules of Programa Nossa Energia.
Indicator - Employees with training in Health and Safety
The management of health and safety at work begins with the prevention of accidents, either through technical training and awareness-raising, or through corporate programs of identification and mitigation of accident risks, in accordance with the goals of SDGs 3, 4 and 8. In its developments, Copel performs the OHSAS certification, thus conferring a more rigid monitoring of issues related to health and safety at work.
Copel’s goal for 2023 is to train 100% of employees in mandatory courses related to occupational health and safety.
Indicator - Workforce fatalities - Own
Health and Safety at work is present in Copel’s Strategic Reference, specifically defined as one of the Company’s values. Based on this premise, it seeks to ensure a healthy work environment in which employees and managers collaborate in the use of a process of continuous improvement of protection and promotion of safety, health and well-being of all, according to the goals of SDG 3 and 8.
In this sense, Copel has several programs focused on occupational health and safety, besides campaigns aimed at eliminating occupational accidents.
Copel’s goal for 2023 is 0 (zero) fatal accidents involving its own employees.
Indicator - Fatalities in the Workforce - Outsourced Employees
Before beginning their activities, outsourced employees undergo integration training, in which the risks and precautions related to health and safety for the execution of tasks are addressed.
Additionally, for risky activities, certificates of completion of mandatory training, as provided in the Regulatory Standards of the Ministry of Labour and Employment, carried out by external entities, are required.
These actions, among many others, aim to achieve the goal of Zero Fatal Accidents in the Company’s activities, as of 2023, in accordance with the goals of SDG 3 and 8.
Copel’s goal for 2023 is 0 (zero) fatal accident with third-party employees.
Indicator - Customer Satisfaction Index
Customer satisfaction is directly linked to the economic-financial performance and to the reputation of organizations. It is a performance indicator that allows measuring how much the company meets the customer’s expectations regarding products and services, under several aspects, such as relationship, service, term, price, trust, operational efficiency and cost/benefit ratio.
Thus, customer satisfaction in relation to Copel Distribuição is monitored, among other ways, by applying the annual satisfaction survey, conducted by the federal government regulator, Aneel.
Copel’s goal for 2023 is to reach a 77% customer satisfaction index.
Indicator - Variable Remuneration linked to ESG Performance - employees
Variable compensation is a Copel practice, complementary to fixed compensation, which involves all employees and contributes to the cultural change at the Company with a focus on meritocracy and on valuing professionals according to their deliveries. Thus, employees are encouraged to work with challenging goals, to achieve differentiated levels of results and receive variable remuneration according to their achievements.
Copel has a merit-based variable compensation program for all employees, with financial, operational and sustainability goals.
Following corporate governance best practices, 30% of the variable remuneration of senior management members is linked directly to ESG performance.
Governance Dimension
Copel stands out among the Brazilian state-owned companies in terms of corporate governance and has as a practice the constant improvement of its governance system, which counts on the monitoring of the effectiveness of the Corporate Governance practices, performed by means of a specific indicators.
The governance performance indicators and targets are aimed at measuring Copel’s adherence to the best market practices and are based on compliance with the requirements of the Program Outstanding in State Governance and the Corporate Governance dimension of the Corporate Sustainability Index (ISE), of B3.
Among the criteria for appointment to the Company’s statutory bodies are the diversity and experience of the members of the collegiate bodies, who undergo an annual evaluation, aiming at measuring the performance of the senior management. To learn more about Copel’s indicators, access the Company’s reports.
Indicator - Performance Evaluation of the Senior Management
In order to ensure that the performance of managers is always aligned with the best interest of the Company, stakeholders and the government of Paraná, Copel uses as a reference the Code of Best Governance Practices for Publicly-Held Companies, of the Brazilian Institute of Corporate Governance (IBGC), in addition to the rules and regulations of the stock exchanges where it is listed and Federal Laws No. 6,404/1976 and No. 13,303/2016.
As established in Article 81 of the Company’s Bylaws and the Annual Performance Evaluation Policy of Statutory Bodies, the statutory bodies of Copel (Holding) and its wholly-owned subsidiaries undergo an annual performance evaluation process.
Following the applicable legal requirements and with reference to the best corporate governance practices, 100% of the Company’s collegiate bodies, including the governance secretariat, as well as the respective members are evaluated.
Indicator - Diversity - Women in top leadership
Diversity in Senior Leadership is an objective of the Company, and not just a goal setting, but aims to include underrepresented groups in strategic positions, ensuring higher quality and representativeness of decision making, since it allows different lines of reasoning and perspectives. The Board of Directors, the Executive Board and Strategic Level Managers (Superintendents and Assistant Directors) are considered Senior Leadership.
The establishment of diversity indicators and targets related to senior leadership positions are supported by Female Leadership Development programs promoted by the Company. For the purpose of monitoring this indicator, the number of women in senior leadership in the base year 2022 is considered.
Copel’s goal for 2025 is to increase the number of women in the Company’s senior leadership positions by 40%.
Indicator - Employees trained in Code of Conduct and Cybersecurity
The principles that guide Copel’s Integrity actions are based on the Company’s values, on the Code of Conduct and on the Global Compact of the United Nations (UN). The actions carried out by the responsible areas are compiled in the Integrity Program, whose purpose is the correct treatment of ethical and conduct deviations and mainly the implementation of anti-corruption measures.
Copel’s Integrity Program is aligned with the Anti-corruption Law (No. 12,846/2013) and the Law of Responsibility of State Companies (No. 13,303/2016). With a scope that involves all employees, administrators and fiscal councilors, the Integrity Program is structured to prevent, detect and remedy potential harmful acts such as conflict of interest, fraud in bidding processes and payments, among other points.
Copel’s goal for 2023 is to train 100% of employees in Anticorruption, Code of Conduct and Cybersecurity courses.
Indicator - Variable Remuneration linked to Performance ESG - Top Management
The remuneration policy for the Company’s administrators is in line with the best market practices, considering the applicable legislation and aiming at remunerating the responsibilities, the time dedicated to the function, the necessary qualification and skills, as well as the risks inherent to each position.
In addition, as established in the remuneration policy, indicators linked to the budget and strategic planning are considered, as well as indicators of achievement of ESG (Environmental, Social and Governance) goals, reinforcing the commitment with the creation of value in a sustainable manner for the shareholders and other stakeholders.
Copel’s goal for 2023 is to reach 10% of variable remuneration for members of the senior management, directly linked to ESG performance.
Sustainability Management
Copel’s sustainability management is guided by global parameters and seeks to ensure that the Company’s business remains profitable and competitive, meeting the expectations of shareholders and investors, as well as environmental, social and ethical factors, in the medium and long term, in order to meet the other stakeholders, contributing to sustainable development.
ISE B3 Indicator
The Corporate Sustainability Index (ISE), from Brasil, Bolsa, Balcão (B3 S.A.), is a tool for comparative analysis of the performance of companies listed on B3 under the aspect of corporate sustainability, based on economic efficiency, environmental balance, social justice and corporate governance. The ISE B3 was created in 2005, being a pioneer in Latin America and the fourth sustainability index in the world, of which Copel is proud to have participated in 17 of the 18 editions since its launch.
Besides being a strong reference in responsible investment options in Brazil, the ISE B3 stands out for its historical performance above the indexes presented by B3 and as an inducer of good corporate practices.
Copel’s goal for 2023 is a performance of 82 points on the ISE B3.
CSA/DJSI Indicator
S&P Global’s Corporate Sustainability Assessment (CSA) questionnaire is an annual assessment of sustainability practices, covering more than 10,000 organizations worldwide and intended for companies seeking to establish a sustainability baseline and gain an independent view of their performance relative to similar companies.
The CSA allows you to report on key sustainability metrics and monitor company performance across a wide range of industry-specific environmental, social, economic and governance criteria. The results are not only an important resource for the community and the financial market, but also provide guidance to employees, customers and other stakeholders on the effectiveness of actions towards sustainable development.
One of the objectives of the current administration is to improve Copel’s sustainability actions, which means placing the Company among the reference companies in sustainable development, attracting investments and reinforcing the positive impact of its image. For this reason, the improvement of sustainability performance is measured through the CSA/DJSI and is linked to the goals of the Performance Award (PPD) of the entire company.
Copel’s goal for 2023 is a performance of 75 points in the CSA/DJSI.
