From development to operation, we go beyond legal compliance, following international practices, such as the International Finance Corporation (IFC) Environmental and Social Performance Standards. This way, we make sure we're more efficient and perform better on social and environmental impact issues in every phase of our projects.
Committed to the future of the planet and future generations, we have incorporated the Sustainable Development Goals (SDGs) into our business model in order to build energy generation projects that generate shared value with the communities where we operate. Our actions are designed in a participatory manner, including those around us, directly or indirectly, with the aim of achieving improvements in infrastructure, education, health, and income generation.
We evaluate our social and environmental performance through a set of constantly monitored indicators. We have an Integrated Management System where the Sustainability, Occupational Health and Safety, and Social Investment Guidelines are published and updated, in addition to specific management plans and operating procedures. These documents not only assist our employees, but are also included in the terms and conditions for hiring partners to replicate our guidelines throughout the supply chain.
As a statement of our commitment to the 2030 Agenda, Rio Energy has been participating since 2020 in one of the world's largest corporate sustainability initiatives, the Global Compact. We follow the 10 principles, which cover the areas of Human Rights, Labor, Environment, and Anti-Corruption.
Our investment and management approach, focused on renewable energy and ethical business practices, reflects a continuous effort to advance our sustainability journey. We seek to integrate the SDGs into our business, contributing significantly to SDG 7, Affordable and Clean Energy, and SDG 13, Climate Action.
For us, Environmental Licensing is a strategic tool for social and environmental management, and therefore our commitment goes beyond legal obligations. We implement the environmental programs established in the licensing process through rigorous control of performance indicators and best practices in the sector, seeking to meet IFC standards. We also operate in synergy with voluntary social projects, maximizing the positive impact of our actions.
During project development, we conduct environmental impact assessments, where the priority is to avoid adverse effects. For those that cannot be avoided, we propose mitigating measures and establish indicators to monitor our environmental commitment. In addition, we assess the type of habitat in which our projects are located. In the case of critical habitats, we develop a specific Biodiversity Action Plan in order to achieve a positive net biodiversity balance.
Our commitments to the environment are assumed by our leaders through management by example. To this end, the company's leaders take a proactive, preventive, and responsible stance.
The assessment and management of social and environmental risks and impacts is carried out with a view to reducing negative effects and maximizing positive ones. In addition, we record and investigate incidents and deviations to prevent accidents that may cause environmental damage to communities. This is part of our commitment to continuous process improvement, which also includes periodic evaluation of the performance of social and environmental programs.
At Rio Energy, business is conducted in accordance with the Guiding Principles on Business and Human Rights, and we follow the ten universal principles of the Global Compact, both of which are UN initiatives. In our Human Rights Policy, we formalize our commitment to respect internationally recognized standards, including those defined in the International Bill of Human Rights and the Declaration of the International Labor Organization (ILO).
We provide safe and healthy conditions for our employees to work in, and treat everyone who works for Rio Energy or is affected by our operations fairly and without discrimination. This includes, in particular, the communities affected by our activities, respecting their rights to property, livelihoods, land use, and natural resources, as well as safety, health, water, and sanitation.
We adopt compliance processes to protect human rights, which apply from the selection of suppliers to the execution and completion of services. We have strict qualification processes and hire an independent auditor to evaluate them in order to combat all forms of human trafficking, forced labor, or child labor in our value chain.
Transparency is an essential commitment across all our areas of activity, especially in relation to sustainability. That is why our GRI Reports are published annually, not only to report on actions, results, and environmental, social, and economic indicators, but also to strategically guide every decision within Rio Energy. This data is essential to ensure that our goals transcend the financial, placing social and environmental impact at the center of our choices.
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