Q – ESG REPORT

Q4 – 2020

Global Energy Business Investment Platform

1. SUSTAINABILITY

1.1 Activities

1.1.1 Sustainability Report

In October and November, we carried out a review of the materiality matrix in Brazil, covering thetransmission and power generation business, the process consists of a thorough consultation withprioritized stakeholders that directly impact the business, under their perception of relevance thematerial issues that should be prioritized in the company's management and highlighted in thesustainability report through GRI indicators.With the definition of materiality, in November we began to survey the indicators with all areas of thecompany, in order to define the structure and first revisions. The indicators will also go through anexternal assurance and verification process, aiming to guarantee veracity and transparency for allstakeholders.

1.1.2 Global Compact

1.1.2.1 Sustainable Development Goals – SDG

In October, Celeo BR started monitoring the objectives and goals of the 5 prioritized SDGs, the goalsare monitored together with the areas in line with the survey of the Company's annual objectives.Some highlights:

SDG 13 Action against global climate change

Reduce and / or mitigate the impact of the Company's emissions, perform adiagnosis and establish an emissions management plan.Actions:• Monitor the implementation of PMI to improve the sealing of circuitbreakers to reduce fugitive SF6 emissions.• Monitor the management of SF6 emissions at the facilities.• Guide the substitution of fossil fuel consumption for renewable ones.• Implement CO2 emission compensation methodologies.

For complete monitoring look at annual goals.

1.1.3 GHG Protocol

In December (2, 3 and 4) we participate in a trainnig promoted by the GHG Protocol BrasilianProgram in order to show the tool we’ll have to use in 2021 to calculate our carbono inventory. Nochanges were presented, so the process won’t be any different from their part. Although, in OctoberKPMG presented to us the Improvement Opportunity Report, which evaluate the data collection,reporting and assurance processes and highlight some improvement points. This report was reviewedby sustainability team, that is already considering some of its opportunities in this year process.These opportunities can be observed in the list below.

Scope Improvement Celeo’s Comments

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Fugitive emissions represent an amount of 60% of Celeo'sScope 1 emissions due to the use of SF6 gas, which has a high GWP. Compared to last year, all Scope 1 emissions reduced, with the exception of SF6. We recommend reviewing the processes that demand the use of the gas in question, seeking greater efficiency and control.

PMI in progress, increase justified by improved control (centralized at Gestãode Ativos, which will still be observed this year)

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1- We recommend the creation of an effective control in the suppression of vegetation for O&M phase containing the exact number of individuals cut (and / or area impacted with the density of local vegetation. (Change in land use) 2- According to the technical standard of Land Use Change (Version 3.0 the GHG Protocol advises that the reporting of emissions related to natural disturbances, including spontaneous fires, be carried out. We recommend that a system be developed for the analysis and control of these emissions. 3- Update emission factors related to plant removal / suppression. We recommend as a best practice the use of international references / standards

1- In study. It won’t be implemented for 2021. 2-Item not applicable to us according to the decision tree present on page 8 of the referred technical standard (OI has the right to use the area, but not the control of the area). 3- Factors under evaluation to define the best scenario to be used.

3For greater precision, it is recommended that Table 1 of the GHG Protocol tool be used, discriminating between air travel

Will be executed as oriented.

GENERAL

Create indicators and establish a periodicity for the reporting of the Inventory information by the responsible areas so that the reasonability/double check analyzes of the data are carried out in advance to facilitate possible necessary adjustments, making the consolidation of the information more assertive and efficient. Scope 3 in the Public Emissions Registry system, it is recommended to select the option “Not Applicable” in the sources that are not really applied instead of leaving it blank, facilitating the management and control of the reported information Assess the measurement of emissions related to other categories scope 3

2. QUALITY

2.1 Activities

2.1.1 Audits

External Audits 2020

Due to the atypical year that we face due to the COVID-19 pandemic, the scope of the audit had beenrevised, so that we aimed only at maintaining the units that had already been certified in previousyears, with the migration of OHSAS 8001 to the ISO 45001. The teams in Brazil, however, cametogether to assess Celeo's maturity against the integrated management system and understood to beable to expand certification to new units of the company. Thus, in December, the external certificationaudit took place, expanding the scope to 12 new units!

The external auditors evaluated 7 areas: 3 areas for maintaining certification (Rio de Janeiro, Estreito -LTT and Encruzo Novo) and 4 areas belonging to the new scope), namely: Açailândia, Miranda (IMTE),SE Estreito (CANTE) and Fernão Dias (CANTE). Part of the audits were carried out in person(Fernão Dias, SE Estreito (CANTE), SE Estreito (LTT), Açailândia, Miranda), respecting safety guidelines,and part were carried out remotely (Encruso Novo and Matriz RJ) to avoid contact and maintainingsocial distance as well as involving all areas from the Board of Directors to maintenance technicians. Asa consequence, we had 2 NC, 8 OBS and 2 OM. The non-conformity is under treatment and wasapproved by the audit team and it was recommended to change the scope and upgrade to ISO45001.

2.1.2 Certifications

ISO 45001 – The external audit took place in December 2020, and the change to ISO 45001 wasrecommended by the certifying body, demonstrating the effectiveness of the standard'simplementation.

ISO 27001 – IMS and IT teams have started to adapt our IMS and technical procedures to attendISO 27001. These teams have been working on the procedure's revision with a Consulting supportand as well as it’ll be provide a training course about the most important Security informationguidelines to all collaborators until end of October.

2.1.3 Other Activities and Events:

Corporate Indicators Panel

In December, the we’ve started to survey indicators with the areas in order to set up Celeo's indicatorbank. These indicators will be managed periodically by the sustainability committee. This one isexpected to end in Q1 – 2021.

Strategic Goals

In the last quarter we had the closing of the annual strategic objectives. Due to the pandemic, manywere affected and postponed until 2021.

2020ISO 9001 | ISO 14001 | ISO 45001 Upgrade22 units in scope7 audited units

2019ISO 9001 | ISO 14001 | OHSAS 1800110 units in scope4 units audited presentially

ObservationImprovementopportunity

Non-compliance

2019 4 8 5

2020 8 2 2

4

85

8

2 2

24%

8%

68%

GOALS STATUS – Q4

As Planned

Posponed to

2021

Concluded

3. HEALTH AND SAFETY

3.1 Activities

1 - In October occurred the annual evaluation of materials, inspection and monitoring of activity onthe static compensator of reactives in Imbirussu/Campo Grande-MS. This verification ensures thatthe quality of the material is adequate and allows the activity to be carried out safely.2 - Also in October we’ve performed a verification of risk analysis and monitoring of the outsourcedcompany in the erosive process recovery activity in Vilhena/RO. The risk analysis ensures that theactivity is carried out in a planned manner and with the previously defined risks and with its controlmeasures.3 - In November was conduced a training practice with BTE's the local team on work at height,rescue equipment and prevention measures during a rescue at height. The objective of the trainingwas to improve the technical knowledge of the team, allowing an action in case of emergencies.4 - Also in november was held Evaluation of risk analysis of the activity of inspection and treatmentof the transformer oil in UFV - São João do Piauí/PI. The risk analysis ensures that the activity iscarried out in a planned manner and with the previously defined risks and with its control measures.5 - In December, Identification of the stages of the activity and verification of the APR(PreliminaryRisk analysis) and monitoring of the disassembly and loading of 03 transformers in the PhotovoltaicPlant in São João do Piauí/PI. The previous survey allowed the activity to be carried out safely,where all team members were aware of the risks and their control measures.6 - Also in December was developed preparation and reading of risk analysis and technicalmonitoring in the activity of exchanging the tensile bars (Tornel joints) of circuit breakers in theSubstations of Tucuruí and Vila do Conde, respectively.7 - Verification of risk analysis and monitoring of the outsourced company in the service rangecleaning activity - Ariquemes-Ji-Paraná stretch in Rondônia. This follow up certifies that the companymaintains the level of service presented in the hiring process throughout the activity stage8 - Monitoring of the external audit ensuring the permanence of the existing certification(OHSAS 18001) and the inclusion of 12 new units in scope as well as the move to ISO 45001.The occupational safety and health team followed the audit, but the work is carried out previouslywith the preparation of the local team.

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3. HEALTH AND SAFETY

3.1 Activities

COVID1 - At the beginning of November, the gradual plan to return to face-to-face activities at the RJ office was initiated afteradaptations to the lay out and adoption of preventive measures. As a worsening of the external and internal indicators,after two weeks the return was suspended until they return to standard standards that allow for a safe return.2 - In December at the RJ office, we continued with the fortnightly preventive sanitization of the Operation andSupervision Center (COS) through a company licensed by the health surveillance agency. For the VCTE / BTE / LTTsupport bases, the installation of safety glass was completed in order to guarantee the distance measures.

Number of employees identified with COVID-19 confirmed by medical examination.

Number of employees who were being monitored on the last day of the month due to suspicion or

contamination by COVID.

Third-party companies are not considered: SJP: 01 (Brasili Segurança); LTT: 01 (Resende); LTC: 01 ( Security)

EmpresaNº

Casos

BTE 2

CRB RJ 32

JTE 1

LTC 2

LTT 2

VCTE 5

RJ office adapted to preventive measures in relation to COVID as provided for in the gradual return plan

Sanitization in COS - RJ

Safety glass installed at the Vila do Conde’s maintaineance base da Vila

do Conde / VCTE.

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4.1.1 Licenses management (LP/LI/LO e outorgas)

CRB manages a total of 27 operating licenses and 24 water resource licenses (artesian wells).The 9 licenses in renewing process remain valid (federal legislation establishes that licenses whichrenewal request was registered at least 120 days before expiration remain valid until the reviewprocess is completed).

During 2020 we were expecting 2 installations licenses (LI) (UFV Barreiras e PCH Distância) to beissued and 1 renewal process of operational license (LO) (Acaraú substations, part of SITE TL).This renewal process was requested before the license due date, and the new Licence (LO) wasissued. LI for UFV Barreiras is planned to be issued in January 2021 and the issuance of the PCHDistância was postponed to 2021.

The 51 operating licenses have a total of 706 requirements. 627 were attended or are for informationand 79 request constant attendance during the validity period of the license. During 2020, theenvironment team was planning on prepare 34 reports. 33 of these were executed and presented toenvironmental agencies within the deadlines stipulated in the licenses. The only report that has notyet been prepared is on the removal of the remaining wood from UFV, a program developed duringinstalation phase and is depending on approval by the environmental agency the finish the process oftrasport of the wood.

4.1.2 Projects under construction

SITE: The last inspection was carried out at the Ibiapina II, Piripiri and Teresina III SE constructionsites, from 11/23 to 11/27/2020, and also in some specific points of LT Ibiapina – Piripiri and LTPiripiri – Teresina.

FV BARREIRAS: Monitoring the licensing process for the 10 photovoltaic plants. The constructionlicense (LI) is scheduled for January 2021. Archaeological licensing process has been completed, andthe responsible agency has issued the consent for LP, LI and LO.

Small Hydroelectric Plants Distância, Faveiros e Patos: Waiting for a pre-executive project tofollow the procedures at IPHAN. Finished hiring a company to study potential malaria.In January 2021 the initial studies will be presented to the health department of mato grosso(SES-MT). Contracting process in progress to review the indigenous study of SHP Faveiros.

PATE: The monitoring of the construction process will begin in 2021, as soon as it is possible toreturn to field activities, due to the pandemic of COVID 19.

4.1.3 Projects in operation

PlantingThe planting projects are executed as a demand of the licensing process. For 2020 we have a goal toplant 28,5 hectares, distributed in CAIUÁ (8,5 hectares) and JTE (20 hectares).

At CAIUA we define all areas in the municipality of Cascavel-PR where we are going to reforest.According to the commitment term, we have until 5/21 to finish planting. The company to carry outthe planting was hired and activities had already started.At JTE, a company was hired to carry out maintenance actions in a total area of 60 hectares and

activities are ongoing.

4. ENVIRONMETAL

4.1 Activities

Process Planned to 2020 planned executed

New Installation Licenses 2 0

Operational Licenses Renewal 1 1

PLANTING TARGET AREA (ha) PENDING AREA

CAIUA 8,5 8,5

JTE 10 0

License Requirements 2020 - Reports

4. ENVIRONMETAL

4.1 Activities

4.2.3 Projects in Operation

Environmental ProgramsWe execute several Environmental Programs in order to comply with the conditions of the Licensesand with the legal requirements inherent to the activities. Some of these programs are stakeholdersengagement (Integra Program), Environmental education, Social Communication, Monitoring of birdcollision with TL, among others.

Bellow we present some activities that were carried out during Q4:

A) Individual PruningFor the environmental licensing of the shallow cut of approximately 90 ha (2019 and 2020) aspecialized company was hired that carried out all the necessary surveys and the report is underpreparation to be filed with the environmental agency.Costs of approximately R$ 400 thousand (forest inventory, environmental fees, forest replacementand fauna rescue and dispersal).

B) Stakeholders Engagement (Integra Program)The objective is to inform landowners in the right of way of the LT importance, risks, as well as fireprevention, environment preservation, and Celeo’s communication channels (hotline).

C) Environmental Education (PEA)The program seeks, through the articulation between enterprise and community, to make feasiblediscussions about the environmental themes chosen by the target audience, as it relates these themesto social participation in the licensing process, the role of local actors and insertion in publicenvironmental management. We are a family owned and operated business.

D) Social Communication (PCS)The Program seeks to maintain and optimize Social Communication actions with priority audiences inthe areas of influence of the project, with the objective of favoring mitigation measures, compensationand control of social and environmental impacts and risks, based on the dissemination of informationon specificities applied to the operation of the enterprise in question and the encouragement ofparticipation and social control processes. We are a family owned and operated business.

E) Avifauna Collision MonitoringThe Program seeks to verify if there is interference from the Transmission Line on the traffic of theavifauna, to verify the occurrence of accidents with the avifauna due to the undertakings and to verifyif the avifauna uses the structures of the Transmission Lines.

B

C

D

5. SOCIAL

5.1 Activities

5.1.1 External Social Projects

KPIs Objective Impact

cooperative members 20 16

Number of bougth equipments 12 12

Waste collection range 50 districts 50 districts

Capacity of recycling 153 mil Kg 245 mil Kg (11 months)

Cooperative income48 mil reais(12 months)

116 mil reais (11 months)

Number of trained students 3.000 3.000

Goals:

1 – Construction of a Solid Waste Sorting and Composting Plant (UTC)

Number of Beneficiaries: 21. 524 (population amount)

2 – Creation of waste pickers cooperative (20) cooperative members

3 – Environmental education and waste collection 3 mil students and neighborhood population

Investiment:

R$ 1.061 milion

Concessão: CantareiraProject:

Let's save the planetWhere:

Monte Santo de Minas - MG

Avanço Geral:

70%

Avanço financeiro:

R$ 759.203,68

(71%)

Avanço da

obra:82% (Prevision to

end: Construction –

30/11/20 and General

project – 30/01/21

KPIs Objective Impact

Beneficiaries 20.000 residences 20.000 residences

Number of residences trained 210 0

Amount of social assistent service0

Square Revitalization/ m2 1614,73m2 0

Basket food distribution/beneficiaries

0 1164 (dir.) / 5003 (ind.)

Goals:

1 – Renovation and construction of an annex at Caetetuba Train Station;

2 – Installation of a Social Assistance Reference Center (CRAS);

3 – Professional qualification of the Caetetuba residences

4 – Revitalization of "Scavone square“ (Basket food distribution/beneficiaries)

Investiment:

R$ 1.061 milion

Concessão: CantareiraProject:

Live well in CaetetubaWhere:

Atibaia - SP

Avanço Geral:

44%

Avanço financeiro:

R$ 615.472,98

(58%)

Avanço da

obra:54% (Prevision to

end: Construction –

30/01//20 and General

project – 30/03/21

ISE BNDES Social Commiment – Cantareira

Subcredit(LT 500 kV Estreito – Fernão Dias)

5. SOCIAL

5.1 Activities

5.1.1 External Social ProjectsCeleo annually supports culture, education, rights, well-being, health and / or sport projects, throughfederal tax incentive laws, seeking to prioritize those that are aligned with its business strategy or thatbenefit in some way the communities surrounding our ventures. Tax incentives are a way of developingprivate social investment through projects, in the form of tax relief calculated based on the value of taxesover real profit. In November, we issued a public notice to map projects in 6 different types of taxincentives, which were jointly classified by the sustainability team, and approved by the sustainabilitycommittee and management. The contribution of approximately R$ 832.000 took place on December 30,and the projects will be developed throughout the year 2021. More details can be observed in the ANNEX.

5.1.2 Internal Social Projects (COVID 19 SCOPE)1.1- Municipal Health Fund - São João do Piauí / 1.2- PI - Hospital Stabilization BedAcquisition of hospital equipment and accessories for the installation of an additional "Stabilization" Bedand PPE kits, next to the Maternidade Mãe Elisa Hospital. The purchase refers to 24 items, 11 of whichare equipment and 6 furniture items and 1724 PPE, totaling an investment of 260M. The purchase ofsome items are still in progress, meanwhile othes are already being delivered.2- Municipal decree for donations to the Municipality of Parintins AMDonation Social Action in response to a Notice from the Parintins City Hall / AM. Acquisition of HospitalEquipment, materials and accessories to create 10 beds of "ICU - Intensive Care Unit", in two Hospitals,being 06 Adult beds, 02 Pediatric beds and 02 Neonatology beds. Estimate R $ 4.2 million 35 items 131equipments and 1 furniture. The items purchase is in in progress.3- Donation of Basic Baskets and Hygiene and Cleaning kits in the State of PiauíCELEO donated 10,000 basic food baskets and hygene items in december, 15,000 PPE - surgical mask,15,000 PPE - disposable mask for 2,000 people in each of the 5 chosen municipalities: Pedro II PiracurucaCapitão de Campos Domingos Mourão and Lagoa do São Francisco. Investment Estimate of R $ 1 MM.4- Palmares Cultural Foundation (FCP)At the request of the FCP, CELEO will donate food baskets and PPE personal protection equipment againstCOVID-19 directed to quilombo communities of Marfim and Onça (within the scope of IMTE) and GamelasIndigenous Community (within the scope of ENTE). Investment Estimate of R $ 100M. Cooperation Termsare being analysed by our legal department. For the Onça, Marfim and Cuba communities, there will be230 basic baskets with hygiene and cleaning kit and 450 for the Akroá Gamela Indians, in partnershipwith FUNAI Regional Coordination of Maranhão.5- Ballet FelizOther social actions developed were through the Projects - “Ballet Feliz”, also in São João do Piauí, inwhich it was made possible with funds from the incentive project (tax incentive resources) approved in2019, the donation of basic baskets for the families of 70 children enrolled in the project, in addition to aChristmas gift kit6- Águias na ComunidadeIn Rio de Janeiro, children from the “Águias na Comunidade” (Children's footvolley and teenager) projectat Instituto Superar were distributed Christmas gifts to 31 children between 5 and 10 years old.

States Beneficiaries K R$

Rio de Janeiro, São Paulo, Minas Gerais, Piauí, Maranhão 285.000 1.400

Amazonas, Piauí 1.336.610 4.700

5.1.3 Traditional Communities ProjectsIn Brazil, the legislation applicable to environmental licensing requires that we pay special attention totraditional communities (indigenous, quilombolas).When we are licensing a project that has interaction with these communities, we need to do a Study ofthe Indigenous Component (ECI) or Quilombola (ECQ), which will assess the specific impacts of theproject on these communities. From that first moment, we prepared the Basic EnvironmentalIndigenous Plan (PBAI) or Quilombola (PBAQ), which will present the control and mitigation measuresfor each impact raised.During the third quarter, we've completed the review of the ECI in CAIUÁ. We are now reviewing PBAItogether with legal advice, with the aim of reducing the actions proposed by the environmentalconsultancy.The ECI at ENTE is paralyzed due to the lack of authorization from indigenous people. The work planhas already been approved by FUNAI.

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6. HUMAN RESOURCES

6.1 Activities

Leadership ProgramObjective of promoting new leaders in the workplace. Making teams more productive and efficient. Teams are nowled by creative, proactive and committed to results.Leadership Program - Transmission Line Managers - Second module of leadership training is being built by theHR area and will be implemented in October. Four 2-hour online meetings will be held with different groups.

Performance Evaluation of CollaboratorsThe Program aims to increase basic education through the implementation of a set of regular and systematicincentives that ensure workers with school deficits access, permanence and completion of elementary, high schoolor technical courses.The HR area is conducting a survey of employees and some are already enrolled in the program.

Diversity ProgrammeWe believe that we are all diverse. In a more plural environment, we aggregate different perspectives, expandingthe speed and capacity of transformation of people and businesses. Affirmative actions to favor inclusion, equityand meritocracy are also ways to interrupt the cycle of economic and social exclusion, allowing everyone to havethe same opportunities and fully develop their potential.

Hiring ProcessesDue to the Pandemic, the hiring process suffered an initial impact with the decrease in the capture ofcandidates and conduct of the process. From July with the improvement of the scenario, the process is inwide dissemination and performing the contracts aligned with the goals, objectives and resources availablefrom Celeo.

Collaborators Engagement1. Virtual celebration with the children of employees, of all ages, for a fun and playful moment with story

telling addressing topics such as inclusion, respect and diversity;2. Chat with external speaker sharing, with Celeo collaborators, personal experience with breast cancer and

his battle with the disease;3. Coffee event with the Board with a chat about the current context and the next steps in the Celeo routine.

4. Research of preparation of the employee for the process of resumption to face-to-face work consideringthe pandemic scenario;

5. Distribution of gifts to 2 institutions in Rio de Janeiro in the social action Natal Solidário;

Benefits Partnership6. Provision of partnerships with institutions, on our intranet, aiming benefits to employees;

H&S Communications

7. Continuous Communication Plan with video making for the change of brand and e-mail Celeo;

8. Recertification of the GPTW seal - Great Place To Work with a final score higher than the previous year;

9. New Year's Thank You Message with video development with the participation of collaborators;

Training

10. Development and application of the Leadership Development Program, with Basic and Advanced module for theCeleo Managers group;

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7.1 Activities

Compliance Communications

The internal newsletter "Corrente Contínua" is sent monthly in digital format to all CRBr employees.

There is a specific section with updates and PIC information. In October, the focus was about CRBr’s

commitment with the ODS 8, which focus in the training and development of the employees; in

November, it reinforced the standards of equality and non discrimination, and informed of the new

version of some of PIC’s normative; and in December, the report was about the International Anti-

Corruption Day.

Ex: October, November and December 2020 publication (photos aside).

Compliance Training

On December 18th, has occurred a global training session about the PIC. The training was given by Sr.

Yaniv Chor, a specialized consultant from Protiviti.

Besides that, on December 21st, Sr. Yaniv Chor has given a specific training about relations with PEPs

for some of CRBs strategics employees.

7. COMPLIANCE