This is the 15 edition of the Itaipu Binational Sustainability Report. This document reports the initiatives and results achieved by the Company in the Brazilian st st territory from January 1 to December 31 , 2017. However, it should be noted that economic, governance and energy production information are binational. Through this Report, Itaipu restates its commitment to transparency towards Brazilian and Paraguayan societies.

The use of the most up-to-date version of the Global Reporting Initiative guidelines published in 2016 is one of the most relevant facts hereof.

Report prepared in accordance with GRI STANDARDS: Essential option.

Document submitted to the GRI Content Index service for verification of requirements and guidelines of the Summary.

[+] Clicking here On page 94 it is possible to see the list of reported contents (which also include the set of indicators of the electricity sector supplement) and their location in this document.

Itaipu Binational was one of the pioneers in adopting the GRI methodology in 2007 in Brazil and in the national electricity sector, and it currently participates in the Reporting Corporate Group of Leaders 2025, which aligns sustainability reports with the Sustainable Development Objectives (ODS). For this document, the operational area was defined as significant operational units

The Report also contains information on the three foundations that Itaipu participates in: Fundação Itaipu-Brasil de Previdência e Assistência Social [Itaipu- Brazil Foundation of Social Security and Pension] (Fibra), when the matter is private pension; Itaipu Technological Park Foundation (FPTI), addressing the theme of research, innovation and regional development; and Fundação Itaiguapy, with regard to health services offered in the area of influence of the company.

Itaipu's sustainability reports are prepared under the Social Responsibility Advisory Department’s coordination, with the assistance of the areas of planning and coordination of the Board of Directors.

In order to demonstrate its commitment to the integrity of the information, Itaipu submits its reports to independent verification since 2004. The company responsible for conducting the assurance is contracted through a bidding process.

This document has been verified by KPMG and information on the assurance procedure is available on page 104

Contact

For further information, suggestions, criticisms or comments on this Report, contact the Social Responsibility Advisory Department at the e-mail address [+] responsabilidadesocial@itaipu.gov.br . or by phone:
(41) 3321-4292;
(45) 3520-5922.

Definitions

• Itaipu Binational is also called Plant, Hydroelectric, Entity, Binational, Company and Organization.
• "Lake" means the hydroelectric reservoir.
• The definition of "employees" refers to the persons who make up the Company's own staff. The term "workers" includes employees, young apprentices, trainees and employees of companies that provide outsourced services that operate in the plant and in the offices.
• The area of activity of Itaipu Binational refers to the territory comprised of the 29 municipalities of the Paraná River Basin 3 (28 in Paraná and Mundo Novo, city of Mato Grosso do Sul) and 25 other municipalities in the West of Paraná, a total area occupied by about 1.3 million inhabitants.

Materiality

The process adopted to define the content of this Report consisted of an analysis of the most relevant material topics identified in previous editions of the document, aiming to improve the management processes of these aspects.

In order to meet the principle of stakeholder inclusion, two approaches were taken: the first considered the representation of the interests of the internal public and it was based on a survey of the main aspects of sustainability contained in the speeches, presentations, articles and interviews of the Brazilian General Director (DGB); in the Business Plan; in the Tactical and Operational Guidelines; resolutions issued by the Board of Directors and by the Board of Executive Officers and in the decisions of the Board; in about 412 reports published in the Jornal de Itaipu Eletrônico [Itaipu Electric Journal] (JIE); and in the Ombudsman’s Office and in the dialogues with the DGB (Talk to Vianna and Chat with Vianna).