Case study: How Neoenergia creates economic value for its stakeholders
A subsidiary of the Spanish group Iberdrola, Neoenergia is helping to lead Brazil’s energy transition to a carbon-neutral economy, operating across three strategic power-sector segments: Distribution & Transmission; Renewables (wind and hydropower) and the Liberalized (thermal generation and electricity trading). Guided by a sustainable strategy comprising investments across all segments of the power sector, Neoenergia seeks to deliver on its commitment to creating value for society, shareholders, customers and employees. Tweet This!
This case study is based on the 2021 Annual Report by Neoenergia, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Creating sustainable value for all its stakeholders is at the core of Neoenergia’s strategy to become the largest and most profitable integrated electric utility in Brazil. In order to create economic value for its stakeholders Neoenergia took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
- create economic value for shareholders
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) Neoenergia has identified;
- How Neoenergia proceeded with stakeholder engagement, and
- What actions were taken by Neoenergia to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual Report Neoenergia identified a range of material issues, such as ethics and integrity, health and safety, energy transition, diversity and equal opportunity, customer satisfaction. Among these, creating economic value for its stakeholders stands out as a key material issue for Neoenergia.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Neoenergia engages with:
| Stakeholder Group | Method of engagement |
| Human team
| · Joint employee subcommittees and committees · Opinion and climate surveys · Ethics and suggestion channels · Employee intranet portal · Corporate webpages |
| Regulators
| · Periodic meetings and consultations, both through direct contact and sector organisations · Corporate webpages |
| Customers
| · In-person (stores and correspondents) and virtual direct service channels (telephone, social media, app, website, WhatsApp and SMS) · Systems to improve customer service and complaint workflows · Customer satisfaction surveys · Corporate webpages |
| Suppliers
| · Supplier portal on the corporate website · Supplier Service Centre · Supplier satisfaction surveys · Supplier onboarding and screening processes · Supplier conferences · Dedicated communications on corporate website |
| Media
| · Press announcements · Press releases · Individual meetings and press conferences · Visits to the Group’s facilities · Virtual press room · Active presence on social media · Corporate website |
| Society in general
| · Social media and traditional communication channels · Active membership of business and industry organisations · Collaboration with academic, educational and innovation-related institutions · Collaborative projects with social and cultural institutions and organisations · Direct relationship with social groups surrounding facilities · Public consultations · Participation in forums, seminars and other events · Corporate website |
| Environment
| · A dedicated portal within the corporate website · Environmental posts on social media · Collaboration with multilateral institutions, such as the UN, and other agents through cooperation contracts and alliances · Participation in global environmental initiatives · Questionnaires to assess the environmental impact of suppliers · Public consultations during the development of new facilities |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Neoenergia engaged with its stakeholders through an online survey among 389 stakeholder representatives, including shareholders, financial market, customers, suppliers, company employees and contractors, media, community and partners in social projects, and regulatory and environmental agencies.
What actions were taken by Neoenergia to create economic value for its stakeholders?
In its 2021 Annual Report Neoenergia reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Neoenergia paid R$ 1,608 thousand for employee compensation.
- Creating economic value for providers of capital
- In 2021, Neoenergia paid R$ 6,735 thousand to providers of capital.
- Creating economic value for the government
- In 2021, Neoenergia paid R$ 15,783 thousand in taxes, fees and contributions.
- Creating economic value for shareholders
- In 2021, Neoenergia paid R$ 1,114 thousand in shareholder remuneration.
- Creating economic value for the community
- In 2021, Neoenergia paid R$ 345 thousand in community investments.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Neoenergia, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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