CEMIG AND THE ENVIRONMENT

Cemig’s activities and the Environment

Commitment to environmental quality is the basic condition underlying the principles that govern the activities which Cemig engages in. By means of its programs, the Company seeks to impress on its employees and partners an awareness in terms of environmental issues. This form of action, which is laid out in Cemig’s Environmental Policy and can be found in every stage of its operations, motivates employees, adds value to the Company and ensures sustainable development.

The Energy Panorama

Cemig operates the largest electric power network in Latin American, extending over 300,000 km (188,000 miles). The Company runs a collection of more than 40 hydroelectric power plants, which generate, transmit and distribute electricity to more than 5.2 million consumers.

In addition to its commitment to the protection of the environment, Cemig invests in programs for the conservation of energy and on research into new alternative energy sources, such as, thermal solar and photovoltaic power, wind power and energy produced from natural gas.

Environmental Concept

Cemig’s environmental actions may be considered pioneering in both state and national contexts. Through research partnerships and surveys conducted in association with Universities and Research Centers, the Company has managed to gather a vast amount of environmental data that is made available to scholars, agencies and institutions concerned with the preservation of the environment and, above all, the community.

In every endeavor, Cemig concentrates on the human side of issues and in doing so, lives up to its commitment to minimize the impacts of its activities and contribute to the improvement of the environmental in the areas in which it operates.

This posture is reflected on the execution of environmental programs, which extend beyond mere compliance with the law and standards of the authorities involved and confirm Cemig’s dedication to environmental issues.

Environmental Policy

The basic foundation of this policy is the rational utilization of natural resources while simultaneously protecting the environment. It defines Cemig’s stance in regard to natural resources and establishes the standards and mechanisms that allow its employees and partners to translate this posture into action.

Co-substantiated in Seven Principles, Cemig’s Environmental Policy, issued in 1990, states the goals that will provide guidelines for all work activities involving the reduction, compensation for or elimination of environmental impacts produced by the Company’s operations, in order to ensure sustainable development.

Principle no.1: Cemig shall plan, design and develop its activities taking into consideration the environment related implications.

Principle no.2: Cemig shall manage the environmental implications of its operations in a proactive way.

Principle no.3: Cemig shall manage the most significant environmental impacts of its operations by adopting mitigating measures and suitable practices.

Principle no.4: Cemig shall seek feasible environmental development, which may extend beyond the management of impacts as required by law without, however, assuming the tasks for which other sections of the Federal, State or Municipal governments are responsible.

Principle no.5: Cemig shall recognize the importance and enrichment provided by participation of the affected or concerned communities during the design phases of its operations.

Principle no.6: In addition to the adherence to the applicable governmental legislation, regulations and policies, Cemig may complement them with its own rules, whenever deemed necessary.

Principle no.7: The due respect for and protection of the environment constitute a responsibility assumed by each and every one of Cemig’s employees, partners and subsidiaries.