company has adopted a proactive position, participating in forums that discuss sector targets together with government authorities. In Brazil, electric energy is mostly supplied by renewable sources; still, unrealistic targets could impact the sector's viability. 5.1b Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions Sector targets could imply financial costs if the company has to adapt any of its processes to meet the targets. In Brazil, electric energy is mostly supplied by renewable sources; still, unrealistic targets could impact the sector's viability. The financial implications, methods adopted and costs associated have not been estimated, because the sector targets have not been published by the government. 5.1c Please describe your risks that are driven by change in physical climate parameters Potential Direct/ Magnitude ID Risk driver Description Timeframe Likelihood impact Indirect of impact The company's distribution and generation activities are directly affected by the changes in temperature. Change in Increased In the More likely temperature operational Current Direct Medium generation than not extremes cost field, climate changes affect the hydrologic regime, which is associated to the electric energy production. In the distribution,
company has adopted a proactive position, participating in forums that discuss sector targets together with government authorities. In Brazil, electric energy is mostly supplied by renewable sources; still, unrealistic targets could impact the sector's viability. 5.1b Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions Sector targets could imply financial costs if the company has to adapt any of its processes to meet the targets. In Brazil, electric energy is mostly supplied by renewable sources; still, unrealistic targets could impact the sector's viability. The financial implications, methods adopted and costs associated have not been estimated, because the sector targets have not been published by the government. 5.1c Please describe your risks that are driven by change in physical climate parameters ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact Change in temperature extremes The company's distribution and generation activities are directly affected by the changes in temperature. In the generation field, climate changes affect the hydrologic regime, which is associated to the electric energy production. In the distribution, Increased operational cost Current Direct More likely than not Medium
Carbon%20Disclosure%20Project.docx