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Socio-environmental Code of Ethics
Principles and Commitments of Private Electricity Generators

MOTIVATION

The unemployment rate in Brazil is still very high and the income of the population is among the most concentrated in the world. To mitigate these problems and position the country at msore acceptable social and human levels it is necessary to accelerate growth and improve the overall income distribution.

In order for this to happen, a fundamental element is required: energy.

The supply of energy needs to accompany the increase in consumption generated by economic growth. New power plants have to be planned for and constructed so that homes, commerce, manufacturing and public services are able to satisfy the needs of the population and generate new jobs and income.

Considering these challenges and seeking a Future that is better and more inclusive than the Present, the leaders of the largest private electricity generators have joined together and drawn up a Socio-environmental Code of Ethics, a set of principles and commitments that indicate how power plants under their responsibility should be constructed and operated, respecting the three dimensions of Sustainability: Social, Environmental and Economic.

The objective of this Code is to share with Brazilian Society the values that guide us, the vision that inspires us and the mission that we have undertaken in order to reconcile growth, environment and the community. It is important that we share with all Brazilians, in a transparent manner, the challenges that electricity production present in terms of respect for man, fauna and flora.

We aspire to much more than limiting ourselves to the current rigorous compliance with the law. We wish to go beyond and establish a set of practices guided by the highest standards of excellence so that quality of life, natural resources and the environment may go hand in hand with economic growth, creation of jobs, increase in income and social inclusion.

This is our commitment to today's generation and to the generations that will succeed us.


PRINCIPLES

The companies that adhere to this Code respect the following Principles:

I. Reduction and control of impacts on the environment;

II. Conservation of biodiversity and natural resources;

III. Respect for the community;

IV. Education and health as elements of social transformation;

V. Transparency and dialogue.


COMMITMENTS

The entrepreneurs who sign this document make the following Commitments in relation to the implementation and operation of their enterprises:

I. Reduction and control of impacts on the environment
• Broaden scientific knowledge of aspects related to the environment and to the society in the regions where the power plants are located;
• Manage residue, reducing its consumption and, whenever possible, reutilizing and recycling before disposing of it;
• Invest in complementary renewable sources of energy;
• Contribute to the continuous improvement of environmental quality and take preventive actions to establish policies, programs and practices that protect people and the environment;

II. Conservation of biodiversity and natural resources
• Encourage the development of environmental conservation projects;
• Stimulate projects to improve energy efficiency and the rational use of energy;
• Promote the rational use of water and other natural resources;

III. Respect for the community
• Support initiatives that promote the sustainable development of local communities;
• Support and promote the preservation of history and cultural heritage;

IV. Education and health as elements of social transformation
• Prioritize actions that promote the educational and sanitary development of the populations surrounding the enterprises;
• Promote the community's awareness of the principles of environmental balance;

V. Transparency and dialogue
• Maintain a continuous dialogue with the population on their rights and obligations before and during construction and operation of the projects;
• Inform society about how natural resources are used in the construction and operation of the power plants;
• Establish an open door policy and two-way communication program, making information channels available to those who are interested;
• Publish a Socio-environmental Responsibility Annual Report.

Brasília, June 5, 2007
(World Environment Day)


This label will be adopted by the companies that adhere to the Socio-environmental Code of Ethics.


Companies that sign the Socio-environmental Code of Ethics: