Political Position aligned with the Paris Agreement
Climate change is one of the most important issues of our time. It requires immediate and coordinated action involving various players’ cooperation in seeking sustainable solutions to implement public policies and business incentives that promote mitigating greenhouse gas (GHG) emissions.
We believe that companies, governments, associations, and NGOs should support the climate goals of the Paris Agreement and commit to science-based actions to keep global temperature increases well below 2 ºC or 1.5 ºC above pre-industrial levels and ensure a neutral balance between emissions and removals by sinks of Greenhouse Gases (GHGs), in the period 2050-2100.
Cemig is part of industry associations and all are aligned with the ambition to limit global warming to 1.5 ºC. We do not carry out political positioning activities individually, only through associations. Because we are located exclusively in Brazil, our focus is national.
The associations and levels of alignment are presented below.
Table 1: Presentation of Political Engagement Data Aligned with the Paris Agreement
| Name of the Association | Description | Level of alignment with the Paris Agreement | Cemig's performance in the Association |
| Global Compact – Net Zero Ambition Movement | The initiative aims to adopt rigorous and immediate measures to halve global emissions by 2030 and zero net greenhouse gas emissions by 2040. | Level of alignment with the Paris Agreement and considered “high | Cemig participates in the meetings and seeks to influence other players in the search for net-zero commitment. By joining the Net Zero Ambition Movement, Cemig has committed to annually publish an inventory of greenhouse gas (GHG) emissions; and reduce GHG emissions in line with the Science Based Targets initiative (SBTi) criteria. |
| Municipal Committee on Climate Change and Eco-efficiency - CMMCE of Belo Horizonte | The CMMCE is a collegiate and advisory agency, which aims to support the implementation of the municipal policy of the City of Belo Horizonte for climate change, acting in the articulation of public policies and private initiatives aimed at reducing emissions of greenhouse gases and air pollutants, reducing the production of solid waste and greater efficiency in the processes of reuse and recycling of waste; encouraging the use of renewable energy sources, improving energy efficiency and rational use of energy and increasing environmental awareness of citizens | Level of alignment with the Paris Agreement and considered “high” | Cemig participates in the meetings, contributing to the search for initiatives to reduce GHG emissions and formulating legislation on the subject. |
| Alliance for Climate Action (ACA-Brazil). | A coalition of players from various sectors of society, such as business leaders, investors and state and municipal governments, to strengthen the subnational climate agenda. | Level of alignment with the Paris Agreement and considered “high” | Cemig participates in meetings, aiming to influence the proposal of initiatives that promote the energy transition and the fight against climate change. |
| Council for Environment and Development (CEMA, Conselho de Meio Ambiente e Desenvolvimento) of the Federation of Industries of Minas Gerais (FIEMG, Federação das Indústrias de Minas Gerais) | The board's purpose is to propose changes in the environmental policy of Minas Gerais and Brazil to improve the business environment for the mining production sector. | Level of alignment with the Paris Agreement and considered “high” | Cemig participates in meetings of the GT CEMA Climate Change and Air Quality, aiming to influence the proposal of environmental policies that promote the energy transition and the fight against climate change. |
| ABRADEE – Associação Brasileira dos Distribuidores de Energia Elétrica (Brazilian Association of Electric Energy Distributors) | ABRADEE aims to represent its associates judicially or extrajudicially in defense of its interest | Level of alignment with the Paris Agreement and considered “medium” | The Director of Institutional Relations of Cemig is part of the Board of Directors of ABRADEE. Several Cemig employees work in different Working Groups, emphasizing Energy Efficiency and Social and Environmental Responsibility. According to the bylaws, Cemig contributes an annuity rate to ABRADEE, established at the entity's general meeting. In 2022, this amount was BRL743,609.91. |
| ABRAGE - Associação Brasileira das Empresas Geradoras de Energia Elétrica (Brazilian Association of Electricity Generating Companies) | ABRAGE aims to exchange technical, commercial, financial and legal information about electricity generation activities. | Level of alignment with the Paris Agreement and considered “medium” | According to the bylaws, Cemig contributes an annuity rate to ABRAGE, established at the entity's general meeting. In 2022, this amount was BRL232,292.92. |
| APINE - Associação Brasileira dos Produtores Independentes de Energia Elétrica (Brazilian Association of Independent Producers of Electric Energy) | APINE has objectives that make the association a strategy for Cemig. The aim of promoting the defense of the interests of the electricity generation segment stands out, especially concerning independent producers and similar generators, advocating for its market space to be expanded and its profitability preserved. | Level of alignment with the Paris Agreement and considered “medium” | According to the bylaws, Cemig contributes an annuity rate to APINE, established at the entity's general meeting. In 2022, this amount was BRL222,093.28. |
| Abrate – Associação Brasileira de Empresas de Transmissão de Energia Elétrica (Brazilian Association of Electric Power Transmission Companies) | ABRATE seeks to represent the legitimate interests and add value to the associated Companies, with proactive action to guarantee the electricity transmission business's sustainability, development and attractiveness. | Level of alignment with the Paris Agreement and considered “medium” | According to the bylaws, Cemig contributes an annuity rate to ABRATE, established at the entity's general meeting. In 2022, this amount was BRL220,505.21. |
| Abraceel - Associação Brasileira dos Comercializadores de Energia (Brazilian Association of Energy Marketers) | The association aims to defend free market competition as an instrument to promote efficiency and security of supply in the areas of electricity, ethanol and natural gas. In addition, it aims to stimulate the growth of carbon credit negotiations and promote the union of associates, representing them before public authorities, national and international agencies and institutions. | Level of alignment with the Paris Agreement and considered “high” | The Company operates through a Technical Group responsible for discussing, proposing and sending contributions to MME / Aneel public hearings on the association's participation in government instances. According to the bylaws, Cemig contributes an annual fee to ABRACEEL, established at the entity's general meeting. In 2022, this amount was BRL88,680.00 |
| ABRAGEL - Associação Brasileira de Geração de Energia Limpa (Brazilian Association of Clean Energy Generation) | ABRAGEL currently represents the most relevant agents for the generation of Hydroelectric Generating Plants – CGHs, Small Hydroelectric Plants – SHPs and Hydroelectric Power Plants – HPPs up to 50 MW in the country. Its main objective is to promote the union of small and medium-sized electricity producers, companies, entities and associations interested in this market, representing their associates before public authorities, national and international agencies and institutions, defending their rights, interests and aspirations. | Level of alignment with the Paris Agreement and considered “high | According to the bylaws, Cemig contributes an annual fee to ABRAGEL, established at the entity's general meeting. In 2022, this amount was BRL124,200.00 |
We are committed to establishing a target aligned with a decarbonization trajectory of 1.5 ºC. In 2022, we joined the UN Global Compact’s Net Zero Ambition Programme and committed to reducing 90% of greenhouse gas emissions by 2040.
For this reason, our Strategic Planning 2023-2030 provides for investments in renewable energy generation expansion, modernization and reform of electricity distribution infrastructure, and investments in R&D Projects, including energy and hydrogen storage and Energy Efficiency actions.
Our association engagement management system includes the following assumptions:
a) Our executives and leaders do not directly or indirectly support policies or initiatives that increase the risks and impacts of climate change.
b) We participate in sectoral associations that advocate climate change policies.
c) We monitored the participation in direct and indirect associations, evaluating the alignment of these associations with the commitment to limit global warming to 1.5 ºC.
d) We establish political positions aligned with strategic planning, as well as with its climate commitments.
e) The Company’s representatives seek to influence or support research projects, specialized studies on the subject, and political and business forums favorable to businesses aligned with the Paris Agreement.
f) Participation in trade associations, forums, committees, working groups, NGOs, are conditioned to the political alignment of initiatives that contribute to reducing GHG emissions and policies that encourage climate transition that limit global warming to 1.5 ºC. In the event of unconsciousness in the performance of any trade association that the company participates in, the Company’s representatives express their opinion, reaffirming the commitment to support regulatory changes that promote a sustainable future and inform their leaders about the issue.
g) The Company’s representatives in these associations together with the executive board, analyze the positions and influences of climate policy of trade associations and when political inconsistencies occur are analyzed the option of distancing or discontinuity of participation in these associations, something that has not yet occurred.
h) We support coalitions that act in favor of climate policies.
At Cemig, the Communication and Sustainability Board monitors public policies related to the ESG agenda and climate change, including the Paris Agreement.
The Board considers ESG issues an integral part of its business strategy oversight.
The Executive Board, based on the recommendations of the Communication and Sustainability Board, assumes public commitments and validates the goals related to coping with climate change.
Sustainability Management supports the Company’s areas in the execution of actions that impact greenhouse gas emissions; follows and monitors the Company’s performance concerning the subject under the legislation, sustainability requirements and corporate goals.
To ensure the transparency of our actions:
a) We publicly inform our participation in trade associations, NGOs, forums, and committees and their positioning in support of climate policies or initiatives that promote renewable energy growth measures or the introduction of a carbon price that is aligned with the achievement of net zero by 2050.
b) We make this information available annually in the Annual Sustainability Report and the CDP Climate Change questionnaire, reporting the connection with the Company’s strategic planning and business.
c) We annually disclose information on how climate risks impact business, report investment data to limit global warming to 1.5 ºC, and our decarbonization strategy in the CDP Climate Change questionnaire, TCFD Report and Sustainability Report.
Finally, as already mentioned above, we carefully follow the position of the associations we participate in concerning the Paris Agreement. So far, everyone supports and seeks to work to limit global warming. In the event of unconsciousness in the performance of any association that the company participates in, the Company’s representatives will express their opinion, reaffirming the commitment to support regulatory changes that promote a sustainable future and inform their leaders about the issue.