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Eletrobras: Renewable energy & human rights

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Does your company have a publicly available commitment to respect human rights? If so, please provide a link.

In 2015, the Eletrobras companies expanded their Environmental Policy by including Guidelines for the Resettlement of Populations Affected by Electric Energy Ventures. The guidelines were developed on the experiences of the Eletrobras companies’ relations with the affected communities, on the Eletrobras companies’ best practices and on national and international debate on the topic, including the debate relating to national legal frameworks.

In 2016, the Eletrobras companies revised their Social Responsibility Policy, taking into consideration new guidance documents such as the UN Guiding Principles on Business and Human Rights and the Sustainable Development Goals, as well as others that had already been used such as ISO 26000 and the Global Compact, to which Eletrobras is a signatory.

Taking these reference documents as a whole, the Eletrobras companies’ commitment to Human Rights has become clearer, and this is also set out in the Code of Ethics of the Eletrobras Companies.

Both documents can be found on our website:

http://www.eletrobras.com/elb/data/Pages/LUMIS376C5AF5ENIE.htm

Does your company identify its salient human rights issues and does it have a due diligence process to manage them? If so, please list the issues and describe the due diligence process (key steps include: impact assessment, integrating & acting on findings, tracking responses & communicating how impacts are addressed).

Socio-environmental studies are conducted to find the best project locations and arrangements in order to minimise the impact on communities, conservation areas and indigenous lands. Environmental Impact Studies (EIS) are also conducted to identify, evaluate and classify the impacts arising from electricity generation, transmission and distribution on vulnerable groups, for example, and to propose actions to reduce, compensate for and even eliminate such impacts. Those studies are conducted in line with The Terms of Reference issued by the environmental bodies responsible for environmental licensing in Brazil, and they involve field studies and consultation of governments and local leaders. The results of the studies must be approved by the licensing body, which must decide whether or not to issue a Preliminary Licence (PL). After the EIS, a Basic Environmental Project (BEP) is developed, which, besides defining the measures to compensate for and mitigate the noted impacts, guides the social relations and communications actions. The BEP is also submitted to the environmental body so that it can issue a Site Licence (see Sustainability Report 2015, Engagement with Communities), and all the actions taken (mitigation and compensation) are monitored by the environmental body, which can ask for corrections/adjustments to them throughout the process.

While it does not perform a specific human rights assessment, Eletrobras estimates that the risk of human rights impacts occurring is likely to be greater in the construction phase of the projects. In particular, such impacts may occur as a result of the mandatory displacement of people – which alters the population’s way of life – and the influx of workers from other regions, which has an impact on public-service infrastructure and may represent a social risk (see Sustainability Report 2014, Social Risk). All of these impacts are considered in the preliminary studies and in the licensing processes, and are managed through socio-environmental programmes monitored by public authorities and civil society. In Brazil, a project can only be put into operation once it has received a licence to operate from the environmental body.

What criteria does your company use to identify communities that may be affected by renewable energy projects it is involved in?

In the 1970s and 1980s, significant numbers of people were displaced by the construction of hydroelectric power plants in Brazil. At that time, the processes for the resettlement of affected populations were based on an affected property/land compensation approach. In the same period, the organisation of and resistance by affected populations was intense.

At the end of the 1980s, with the creation of the national legal framework (with the National Environmental Policy, the Resolutions of the National Environment Council (CONAMA) and the Constitution of the Federative Republic of Brazil of 1988), the process of environmental licensing was set up.

In the 1990s, the understanding of the concept of affected was extended beyond that of displacement by a reservoir to incorporate the notion of social space. The Environmental Master Plan of the Eletrobras Companies (EMP, 1991) acknowledges that resettlement of people is a complex process of social change that implies alterations to the cultural, social, economic and territorial organisation of the area where it occurs. Socio-environmental studies were incorporated into the manuals produced by Eletrobras in the 1990s, such as the identification of those communities that might be affected by the projects. These were based on conducting socio-economic and land-register research.

In the case of hydroelectric power plants, in the hydroelectric inventory study phase that comes before the feasibility phase and EIS execution phase, surveys are, as a general rule, done using secondary data. The number of affected families is a calculated estimate based, for example, on an interpretation of satellite images (a count of houses in the area affected by the reservoir, and infrastructure works based on a preliminary dam arrangement).

The publication of Federal Decree 7.342 in 2010 and its subsequent regulation by Interministerial Ordinance 340 in 2012 set up the Socio-economic Register to identify, classify and publicly register the population affected by hydroelectric power generation projects, thereby addressing a historical demand by those affected by dams to get the Socio-economic Register regulated. The main objective is to gather data to enable the conditions and ways of life of the population that might be affected to be identified and analysed, either because they remain in the area that is flooded and affected by the power plant works, or because there is a direct impact on their livelihoods and on other social and economic relations (which will be compromised).

Under current legislation, the Socio-economic Register of those affected by dams should preferably be produced while the feasibility study is being conducted, before a PL is issued and, therefore, before the power plant is put out to tender. In the recent Terms of Reference issued by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), which provide guidance on how EIS should be conducted, the Socio-economic Register is also listed among the initial surveys that need to be carried out in the area directly affected.

The property/land register is usually produced in the BEP phase, after a PL is issued. That register contains data about the characteristics of each property affected by the formation of the reservoir, by the permanent preservation area and by the associated works. It also contains documents from the owners and/or posseiros (untitled occupiers) of those properties and identifies land use. Together with other elements, such as inspection reports, these documents will form the basis for the process of compensating those affected.

Regarding transmission and distribution lines, alternatives routes are always evaluated in the project in an attempt to avoid the displacement of people. If such alterations are unfeasible, the socio-environmental characterisation and analysis are submitted in Report R3, the phase prior to putting the line out to tender. After the tender, the land register identifies the properties and subsidises the compensation processes.

In other situations, such as thermoelectric and wind power plants, physical and economic displacement is reduced, and the companies carry out an identification of the affected population in accordance with the guidance from the environmental bodies.

The sooner robust data are available, which are more consonant with reality, the quicker and more securely can those responsible for the projects take decisions: be it making adjustments to the arrangement of the project in order to displace the fewest people possible, or anticipating compensatory environmental actions before starting to fill the reservoir in the case of hydroelectric projects.

The Guidelines for the Resettlement of Populations Affected by Electric Energy Ventures that can be found in the Environmental Policy also list a series of topics that must be taken into consideration in the process of identifying and negotiating with the affected population.

How does your company consult with affected communities (on impact assessments, resettlement, benefit sharing plans, etc.)? Please describe what form consultations take and when they are carried out in a project’s cycle.

In its projects, Eletrobras follows the advice contained in the document entitled “Processos de interação com a sociedade” (Processes of Interaction with Society) (1994), as updated by the principles of its Environmental Policy, and especially by the Guidelines for Environmental Communication and for the Resettlement of Populations Affected by Electric Energy Ventures .

While the hydroelectric inventory studies are being conducted, whose data sources are mainly secondary, meetings are held with representatives of institutions such as councils and environmental organisations, as well as business associations, non-governmental organisations and social movements.

When it comes to conducting EIS and feasibility studies for electricity generation and transmission projects, social communication actions are carried out. The latter include setting up local offices, producing and disseminating various communication materials such as folders, videos and radio programmes, and holding meetings with a range of social groups to carry out consultations, disseminate information and promote social interaction and the involvement of affected communities. Opinion surveys may also be conducted in the project area to identify the population’s expectations. All of these activities are normally carried under the Social Communication Plan, which also maps stakeholders, monitors the media and assists with conducting dialogue and resolving potential social disputes. Field teams interact with the stakeholders to provide information about the project, the process phases, the studies to be conducted, the relevant legislation and the commitments to be met at meetings where the affected population can seek clarification of their doubts and express their opinions about the project.

In the EIS, diagnoses of the social aspects in the projects’ area of influence are performed, with the participation – through interviews and meetings – of the local communities and their representatives, as are impact assessments.

In addition, agreements are reached and partnerships are formed. These define how the Eletrobras companies will develop the initiatives, whether voluntary or compulsory (in the case of the latter, because they are constraints imposed by the licensing process). The companies work to ensure that the actions eventually taken or promoted, which are related to the socio-environmental impacts of their projects, involve community representatives, social movements, non-governmental organisations and universities, as well as representatives of public authorities, councils, environmental bodies, the National Institute for Colonisation and Agrarian Reform (INCRA), the National Indian Foundation (FUNAI) and the Fundação Palmares.

Interministerial Ordinance 340/12, which regulates Decree 7.342/10 relating to the Socio-economic Register, contains a series of guidelines for implementing a social communication plan that provides the population with information on and clarification of the registration process, and also promotes publicity, transparency and the safety of those involved through, for example, the dissemination of information via radio, television and newspapers, as well as holding meetings with those communities that such registration targets.

Does your company ensure its consultations include the perspectives and respect the rights of all affected community members (including those who may be marginalised for reasons of gender, social status, age, religion, wealth or income or other considerations)? How is this ensured?

The Guidelines for the Resettlement of Populations Affected by Electric Energy Ventures, for example, stem from the fact that the company must promote the participation of the various representative bodies – whether formal or informal – that the population itself suggests.

Has your company faced any challenges in its process to seek free, prior & informed consent for renewable energy projects? If so, please describe what steps your company has taken to overcome these challenges.

The Eletrobras companies are committed to the principles and guidelines contained in the Environmental Policy of the Eletrobras Companies. Among those guidelines, number 3.1.3 – Relations with Society, provides that:

  • The Eletrobras companies should carry out a dialogue with the various social actors involved, from the time an undertaking begins to be planned, so that their expectations and needs may be identified.
  • The language used in communication processes should be appropriate to the target public.
  • The Eletrobras companies should establish a continuous process of communication with and enlightenment of the public about issues related to electric power and environmental actions.

In addition, a working group that brings together representatives of the Eletrobras companies is currently developing a set of specific guidelines for indigenous communities, which will be included in the Environmental Policy of the Eletrobras Companies.

In this respect, the Social Responsibility Policy of the Eletrobras Companies also contains the following within its guidelines: “Promote engagement and qualified relationships with stakeholders, with ethical and transparent dialogue, considering expectations, needs and social, cultural, economic, political and environmental contexts” and “Ensure permanent dialogue with communities, respecting their values and interests, in order to improve quality of life in its social, economic, cultural and environmental aspects”.

Furthermore, Brazilian legislation provides for specific studies on indigenous communities to be conducted: Study of the Indigenous Component, conducted in accordance with the guidelines of FUNAI, which evaluates its content and formally expresses it opinion on the feasibility of the project. Equivalent procedures are adopted by the Fundação Palmares in the case of communities of African descent.

In partnership with IBAMA and FUNAI, Eletrobras had already carried out consultations of the indigenous communities before project implementation, as in the case of the hydroelectric power plant Belo Monte. It had even made provision for the participation of indigenous communities in the public hearings held as part of the licensing process.

Twelve specific meetings with indigenous communities were held between 19 August 2009 and 2 September 2009. Led by FUNAI and with the participation of IBAMA and Eletrobras, at these meetings the Indians had the opportunity to express their opinions in their own villages, without the participation of other stakeholder groups. To be precise, hearings were held on the following indigenous lands: Paquiçamba, Arara da Volta Grande, Juruna do Km 17, Trincheira do Bacajá, Apyterewa, Arawete do Igarapé Ipixuna, Koatinemo, Kararaô, Arara and Cachoeira Seca. Three meetings were held on the Arawete do Igarapé Ipixuna Indigenous Land, in the villages of Ipixuna, Pacakañã and Juruãti. On the Trincheira do Bacajá Indigenous Land, the Indians met in the village of Bakajá, where the hearing was held. On the Apyterewa Indigenous Land, the Indians from the village of Xingu travelled to the meeting that was held in the village of Apyterewa.

All of the meetings were led by FUNAI. The objective of this round of meetings was to present the general lines of FUNAI’s report, which at that time was being consolidated, on the studies relating to the indigenous component of the EIS for the hydroelectric power plant Belo Monte. FUNAI had already held other meetings in most of the villages. Initially it had done so to inform the Indians about the resumption of the hydroelectric power plant project on the Xingu River, and later on to present the team responsible for preparing the studies on the indigenous component of the EIS.

This account underscores the concern that the bodies participating in licensing process had with meeting the needs of the indigenous populations, establishing the necessary instruments to ensure that they could participate under conditions suited to their respective cultures, thereby adhering to the provisions of International Labour Organization (ILO) Convention No. 169.

Interaction with the indigenous communities continued after the tender, when the company that had successfully bid for it, Norte Energia (of which Eletrobras and two of its controlled companies are minority shareholders), developed the specific BEP and entered into a Deed of Undertaking with FUNAI in order to ensure that all the anticipated actions would be met.

Although consultation has yet to be regulated in accordance with the provisions of ILO Convention No. 169, in a recent viability study for the hydroelectric power plant São Luis do Tapajós, the Brazilian government was committed to carrying out prior, informed and free consultation, with Eletrobras being responsible for supporting it and for preparing the Study of the Indigenous Component.

What steps does your company take to ensure that its own personnel, private security companies it contracts with, and/or government forces providing security to its projects, respect the rights of workers and community members, including those who may oppose its projects?

For projects whose studies are the responsibility of Eletrobras, besides the Code of Ethics of the Eletrobras Companies, Conduct Manuals are produced and the field teams undergo constant training. In its presentations to communities, Eletrobras also provides information about its Ombudsman and Contact channels, which can receive and taken action on complaints about its employees’ or hired teams’ misconduct.

Does your company have a grievance mechanism in place at each project site for affected communities and workers to raise concerns about local impacts, including human rights abuses? If so, were affected communities involved in the design of the grievance mechanism, including its set-up and the types of remedies it provides?

For projects whose studies are the responsibility of Eletrobras, local offices are opened up and information is disseminated via specific communication channels for each project. Some examples are the Information and Public Participation Centre for the hydroelectric power plant Garabi, which, until the studies were halted, was in operation in the town of Porto Xavier, Rio Grande do Sul, and the offices in the municipalities of Itaituba and Jacareacanga (recently closed down) for the hydroelectric power plants São Luis do Tapajós and Jatobá, in the State of Pará.