CPFL Ranked High in Brazil’s Corporate Sustainability Index
The Brazilian Stock Exchange operator B3 recently announced the composition of sample stocks of the Corporate Sustainability Index (ISE B3) in 2022, and released its first overall score ranking of selected companies' performance in environment, social, governance (ESG). CPFL Energia (CPFL) was ranked fourth among 46 selected companies and second in the power industry thanks to its standardized practice of corporate governance, comprehensive plan on sustainable development, and outstanding performance in environmental protection and social responsibility.
The index, developed by B3 in 2005, annually updates its list of selected companies, to encourage listed companies to shoulder social responsibilities and improve their performance in sustainable development. B3 has aligned its evaluation methodology with international standards since 2021. It has designed a questionnaire with 28 topics in five areas to assess companies in an all-round way. That means companies are subject to greater scrutiny before being selected. CPFL has been included in the index for the second consecutive year after its re-IPO and ranked high in the power industry. Such achievements demonstrated the market’s high recognition of the company's ESG performance. This on the one hand helps CPFL boost its brand image and draw investors' attention to its stock, and on the other hand enables the company to keep abreast with benchmark companies and peers in its industry, and major social development trends so that it could improve its own management accordingly.
With strong support from State Grid, CPFL furthered its cultural integration project and included sustainable development as one of the five components of its corporate culture. Upholding the concept of sustainable development, CPFL made remarkable progress in corporate governance, social responsibilities, and low-carbon development. Inside the company, CPFL's five-year plan on sustainable development was mapped out in accordance with the United Nations Sustainable Development Goals (SDGs). It successfully held a cloud forum on low-carbon transition in 2021, on the theme of carbon neutrality, and studied on State Grid's action plan on peaking carbon emissions and achieving carbon neutrality, before planning its own path of green growth ahead of time. Outside the company, CPFL engaged in exchanges at home and abroad. Its management were invited to many high-level international conferences including the UN Climate Change Conference and corporate ESG forums held by renowned media. Access to these events enabled CPFL to know more about the best practices of ESG capacity building in and outside Brazil, to share its own experience and achievements, and to raise its profile globally.
In 2022, under the support and guidance of State Grid, CPFL remains committed to green operation and development, and continues to tap its potential for corporate governance, social responsibility, and environment protection. It goes on improving its own ability to serve local socio-economic development, sustaining momentum for the quality growth of the business, and contributing to the success of State Grid's international business, a key pillar of the parent company's development plan.
