In line with market requirements, and based on a responsible approach, CTEEP follows, on a voluntary basis, a set of directives related to both national and international reference guiding principles, such as:

Global Compact

CTEEP has been a signatory to the United Nations Global Compact since 2011. This decision reflects the Company`s commitment to support and disseminate within its sphere of influence the Ten Principles of the Global Compact, which encompass the areas of Human Rights, Labor Relations, Environment, and Corruption Combat, under all aspects.

A fundamental requirement for a company to keep its status as a participant of the Global Compact network consists in meeting the commitment to issue an annual public accountability report named Communication on Progress (COP). In this sense, CTEEP published, in 2012, its 2011 Annual and Sustainability Report, which has also been made available on the Global Compact`s website (http://www.unglobalcompact.org/participant/14976).

Furthermore, in 2012, CTEEP signed an agreement of “Corporate Contribution to Promoting a Green and Inclusive Economy”, which consists in the formal collective commitment undertaken by the Global Compact`s signatories in Brazil, in respect to the sustainability challenging issues during the Rio+20 Summit. The agreement was signed by over 200 organizations and it consists of ten commitments aimed to support green economy, in addition to underlining the key role played by corporations with regard to sustainability.

In line with such commitments, in May 2012, CTEEP attended SMARS – V, the Brazilian Environmental and Social Responsibility Seminar for the Electric Power Sector, during which the Company addressed themes related to the “Environmental Education for Sustainability Program”, as well as to CTEEP`s commitment to human rights.

International Standard ISO 26000

International Standard ISO 26000 guidelines on social responsibility have been a key reference for CTEEP as regards its management approach to this theme. The Company started following such directives in 2011, when ISA Group proposed an action plan based on the alignment between Corporate Social Responsibility (CSR) and standard ISO 26000, beginning with the conduction of a self-diagnosis procedure. Following the evaluation of the results from that first step thereafter, we created an action plan based on the identification of major potentials and frailties, which was performed during the course of 2012.

This action plan was further discussed during a CSR Workshop hosted by ISA with the companies belonging to the Group. The results from both the ongoing action plan and from a new self-diagnosis procedure (covering a broader scope containing 336 questions) were presented and discussed, with emphasis on the core themes laid down in the international standard in question.

Following the compilation of the results and due to the importance of this issue for the Organization, CTEEP has reviewed the action plan for 2013, which is expected to bolster even further advances in the management of the matters considered by the Company while exercising the social- and environmental-related actions.

Ethos Corporate Social Responsibility Indicators

Since 2007, CTEEP has been using the Ethos Corporate Social Responsibility Indicators to assess its management capacity from the perspective of sustainability and social responsibility. This tool enables the company to carry out a self-diagnosis procedure, by means of the application of a questionnaire focused on seven themes: 1) Values, Transparency and Governance; 2) Internal Public; 3) Environment; 4) Suppliers; 5) Consumers and customers; 6) Community; and 7) Government and Society.

This system enables the company to prepare a Diagnosis Report, whose resulting insights help structure the action planning with emphasis on sustainability. This report shows the company`s performance with relation to each indicator, including average metrics that include all the companies that applied the common reference questionnaire, in addition to informing the group of top ten ranking companies. Furthermore, such a system reveals the set of synergies with other initiatives, such as the guidelines put forward by the Global Reporting Initiative (GRI), the Global Compact, the United Nations Millennium Development Goals, and by both the standards ISO 26000 and SA 8000.

In 2012, with the purpose to capitalize on the application of this tool, CTEEP joined two Workshops, covering the topics of Process and Applicability – with a focus on the review of the Third Generation of Ethos Indicators. These workshops aim at promoting the sharing of knowledge, with a view to institutionalize the new generation of metrics, both domestically and abroad, alongside with the consolidation of the corporate management nature of this model. During 2013, the Company plans to engage in these workshops, by means of both in-person meetings and the study of the material sent by the Institute.

Exame Sustainability Guide

Always aware of market benchmarks and tools that may add to CTEEP`s sustainability management, the Company participated, for the fifth year running (since 2008) of the information collection process related to Guia Exame de Sustentabilidade.

Prior to enrolling, the companies are required to fill out a questionnaire prepared by the Centro de Estudos em Sustentabilidade (Sustainability Study Center) of Fundação Getulio Vargas (GVCes), containing nearly 140 questions related to the applicants` commitment to sustainability, transparency, corporate governance, in addition to the economic and financial performance and to social and environmental capabilities.

At the end of the process, the company receives a report containing the scores attributed to each topic, organized by themes, criteria and indicators, as well as the average metrics for the benchmarking group of Top 20 ranking companies. This material consists in an important self-evaluation tool that enables the company to identify opportunities for improvement in several areas.

CIER

The Regional Energy Integration Commission (CIER) is a nonprofit organization, aimed at promoting and fostering the integration of regional electric power operators. CTEEP, as a CIER participant, develops a number of initiatives to bolster, among other aspects, efficiency within this sector; technical assistance and cooperation; sharing of both knowledge and experiences; research and development; as well as the regional consumption of electric power, with a special emphasis on environmental issues.