Supplier management

At the end of 2019, we had 307 suppliers, of which 280 were hired in the year. Of this amount, 17 represented significant investment contracts (asset investment contracts that are approved by the Executive Board), with 100% of them having human rights clauses.

Our supply chain is mainly formed by service providers, manufacturers of electromechanical equipment and electrical materials, telecommunications and information technology, contractors, consultancy, surveillance, cleaning and conservation.

The selection of suppliers is aligned with the Supply Logistics Policy, that guides business by internationally recognized management practices. Additionally, since April 2018, all contracts and acquisitions of Eletrobras companies have been formalized based on the new Bids and Contracts Regulation.

Business ethics and integrity

The values practiced by Eletrobras companies are defined at PDNG 2020-2024:

  • Respect for people and life
  • Ethics and Transparency
  • Excellence
  • Innovation
  • Collaboration and recognition

We have policies and procedures to mitigate the actual and potential impacts of risks associated with business ethics and integrity. We have a structure of controls applicable to all employees, suppliers, business partners and members of boards and councils and we maintain a Permanent Ethics Committee, which is responsible for applying the guidelines of the Public Ethics Committee, strengthening the commitments provided for in the Code of Ethical Conduct and Integrity, through educational actions, and to investigate, through complaints or letters, infractions in this sense. The general integrity management is in charge of the Compliance, Control and Risk Advisory, linked to the presidency of Eletrosul.

The main ethics and integrity actions in 2019

  • approval of the Anticorruption Policy and the Integrity Guides;
  • adherence to the Eletrobras Code of Ethical Conduct and Integrity;
  • organization of the 15th Seminar on Ethics Management in Stateowned Companies;
  • establishment of monitoring indicators for the Integrity Program;
  • training of nominees by the Company to members of the Fiscal Council and Management of Special Purpose Companies (SPEs);
  • awareness of suppliers exposed to the risk of fraud and corruption;
  • training of contract managers and inspectors;
  • training of sponsors, agreements and SPE management operators;
  • periodic communication on ethics and integrity;
  • creation of a third-party integrity risk classification procedure;
  • application of distance learning course for employees, directors and
  • advisors; and
  • approval of the Conflict of Interest Administration Policy.

In 2019, 94 of our suppliers were assessed for risks related to corruption, equivalent to 94.95% of our critical suppliers (99 in all). The main risks identified were of non-compliance with the Integrity Program, in the relationship with the public sector, in donations to third parties, convictions for fraud and corruption, corporate structure not in compliance with Act 13,303/2016, unethical conduct of legal entities and their staff and risk management by third parties. No corruption cases were confirmed at Eletrosul in 2019.

Child labour, forced and slave-like work

As per the Code of Ethical Conduct and Integrity, child labor, the abuse and sexual exploitation of children and adolescents, and forced or degrading labor must not be admitted in their own activities, in the activities of partners and in the production chain of Eletrobras companies. Our business contracts have a clause by which the contractors declare to know and are committed to respect, comply and enforce this Code, among other relevant documents.

Our guidelines for combating degrading work practices are set out in the Social Responsibility Policy.