Cemig s performance in sustainability

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1 Annual Meeting Cemig s performance in sustainability Luiz Augusto Barcellos Almeida Corporate Sustainability Officer

2 The Dow Jones Sustainability World Index DJSI 2005 World leader in sustainability, Electricity Sector 2007 World leader in sustainability, Utilities Supersector 2009 World leader in sustainability, Utilities Supersector

3 The Dow Jones Sustainability World Index DJSI 3

4 The Dow Jones Sustainability World Index DJSI CEMIG Leader, Utilities Group, AGL ENERGY Australia EON Germany EDP Portugal ENDESA Spain ENEL Italy ENTERGY CORP. United States FORTUM OYJ Finland GRUPO IBERDROLA Spain PG&E CORP. United States RWE AG Germany RED ELECTRICA DE ESPANA Spain TERNA - Italy 4

5 The Dow Jones Sustainability World Index DJSI The company is assessed on a series of aspects: Dimensions: economic, environmental and social 21 themes 104 questions Annual reports and websites International media coverage 5

6 The Dow Jones Sustainability World Index DJSI The Economic Dimension Corporate governance Risk and crisis management Code of conduct Client relationship management Market opportunities Price risk management Management systems BSC 6

7 The Dow Jones Sustainability World Index DJSI The Environmental Dimension Environmental management policy and system Eco-efficiency Environmental reports Advanced environmental performance Climate strategy Infrastructure projects Electricity generation Transmission and distribution Biodiversity 7

8 The Dow Jones Sustainability World Index DJSI The Social Dimension Indicators for labor practices Development of human capital Attraction and retention of talents Involvement of stakeholders Corporate citizenship and philanthropy Social reports Occupational health and safety 8

9 The Dow Jones Sustainability World Index DJSI 9

10 The electricity panorama Overview of the sector: Increase in electricity demand from emerging economies Environment Growing attention to global warming Growing demand for cleaner, renewable and distributed energy, tied to diversification of fuel sources and energy services Energy efficiency improvement More attention by society to large-scale infrastructure projects 10

11 Sustainability Reports Cemig EDP Endesa Kansai Electric Power Transalta Corp Canadá Constellation Energy Corp USA FPL Group USA Fortum Oyi Finlândia ENEL - Itália CPFL Furnas Eletronuclear ABB Siemens British Petroleum BHP Billiton Rio Tinto Samarco CVRD Arcelor Petrobras Copesul Shell Aracruz Votorantim Bayer Natura Dofasco Ford Motor Co. ABN Amro Holding Itautec Philco 3M do Brasil Grupo Skill Usiminas Cosipa Cia Siderúrgica de Tubarão Alcan Alcoa Nestlé 11

12

13 Orientation inside the Company 13

14 The Global Pact Cemig adopted the Global Pact principles. Letter of adhesion to the UN dated April 16, Ten social responsibility practices, including human rights and the environment. Among the related subjects are association freedom, child and forced labor, discrimination, environment protection, combat of corruption. Orientation booklet: What is Cemig doing in relation to the Global Pact? Involvement of every employee in the company. Sustainability Global Pact 14

15 Cemig s Fish Alive Program Research and development The Live Fish program has seven research projects in progress. The aim is to identify the most relevant actions to improve and protect fish species in the state of Minas Gerais and define a strategy to prevent and avoid any death of fishes in Cemig s hydroelectric power plants. Handling and conservation Among the actions undertaken by the program are the repopulation of native species, improvement of fish species, support in plant operations and transfer of fishes. Communication and involvement of Society The program seeks to involve diverse audiences, and include workshops, seminars, meetings, publications, theatrical productions and courses. In 2010, a new program was launched to attract young people to practice and become professional athletes in water sports at the Três Marias Hydroelectric Plant. In 2009, the Live Fish program won the fourth Brazilian Environmental Prize organized by Jornal do Brasil newspaper in the Fauna and Flora category. 15

16 The Premiar Program Integrated Tree and Network Handling Program Handling of urban trees with the goal of reducing the conflict between trees and the electricity network: pruning, replacement of trees at risk and replacement of electricity networks. Geo-referencing and analysis: Geo-referenced location information systems with data on trees, electricity network and systems. Development of methods to asses health of tree trunks and roots located in urban streets. Involvement of the scientific community, environmental organizations, local communities and society to prepare solutions. Cemig has 5,942km of protected and isolated distribution networks in the primary system, representing 18% of the total of primary urban networks. The secondary urban networks total 25,216km of isolated networks, representing 45% of all secondary urban networks. 16

17 Investor Relations Telephone: Telefone: (55 31) (55-31) Fax: (55 31)

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