Digitalization
The transformation of the energy system, alongside the digital revolution, entails changing and evolving the way works are performed and how goods and services are supplied. CTGI is very aware of this reality and of the opportunities it presents and, therefore, digital transformation is an essential feature of its sustainability development. In our digital transformation, we aim to use digital solutions as tools for the development of a sustainable future.
In 2022, a seperate Digitalization Center was established as the department in charge of CTGI's digital transformation. We formulated the Company's Digitalization Policy, which considers digital as a key factor to the Company's sustainability. With this Policy, we are committed to ensuring that the Company's digital solutions comply with sustainability criteria, as well as promoting the sustainable use of digital technology in all business processes and in the countries and regions we operate. Besides, the Center also plays a key role in maximizing data and information sharing and ensuring a rapid and effective response to continuous changes, contributing to enabling new operational and business models.
Digitalization has been one of the basic pillars of CTGI's Strategic Plan, as a lever to improve convenience and standardization, as well as process efficiency within the Company. The main actions taken concerned:
? ?ERP System
Launched in 2022, the CTGI's ERP project has made significant progress in the year, and has been starting to enter into operation in modules and phases. With the latest technologies, this ERP System enables CTGI to effectively manage the Company's core business processes in an integrated system, including finance, human resources, procurement, etc. It helps to improve business insight with better enterprise data integrity and enhance the Company's instant collaboration with business partners around the world.
? Office Automation System
CTGI continues to promote office efficiency through an updated digital solution with more automatic process. The Company's new Office Automation Platform has entered into operation in 2022, futher streamlining the daily administrative and management practices. This integration of technologhy in office activities optimizes workflow visibility and enables a more flexible way of internal communication.
Data compliance and information security
As a multinational company operating in 16 markets, CTGI faces data compliance regulatory requirements from multiple jurisdictions, including the EU GDPR, Brazil LGPD, China PIPL, China Hong Kong PDPO, Pakistan PDPB, Egypt PDPL, etc. The Digital Center has conducted study and research on data protection laws and policies in nearly 20 jurisdictions, and has assessed the potential data compliance risks that the ERP System may face. With the signing of the data transmission agreement between headquarters and regional subsidiaries, CTGI has agreed on data compliance management at the protocol level to ensure compliance with the data security and compliance requirements in global operations.
In terms of information security, CTGI adheres to the principle of synchronous planning, synchronous construction, and synchronous implementation between system construction and network security. The Company has been gradually building and improving its network security system, which includes optimizing network regional boundaries, improving monitoring measures, and creating an integrated end-to-end cloud security protection platform.
?Case: CTG Brasil enhanced cooperation with Senai on information security
Considering cyber security as a priority topic, CTG Brasil has partnered with Senai Institute of Information Technology and Communication Innovation (ISI-TICs) with a R$3 million budget. In addition, CTG Brasil has collaborated with the Brazilian Eletricity Regulatory Agency (ANEEL) in the Research, Development and Innovation project to create a cyber security frameword, and has signed a specific tool contract to operate network vulnerabilities and assets inventories, aiming at automating controls.
In addition to proposing new monitoring, governance and follow-up strategies, the framework can also be customized to support different cyber security routines that CTG Brasil considers relevant to its plant operation.
Business Innovation
CTGI considers innovation as one of the Values that inspire our day-to-day actions, and the driving force for long-term development. The promotion of innovation in CTGI's different business lines acts as an engine to accelerate comprehensive growth. Thus we have drawn up our first Innovation Plan setting out goals and priority issues over a five-year time horizon. The CTGI's 2021-2025 Innovation Plan pursues long-term value creation, based on the following strategic priorities that serve as the foundation of its objectives:
The Plan's strategic lines of action coincide with CTGI's strong commitment to the pursuit of continuously improving efficiency through the innovation of its businesses. To this end, CTGI develops Annual Innovation Investment Plan across all its businesses.
In 2022, CTGI's New Business Development & Research Center was officially established in Portugal, with the aim of providing a platform for innovation cooperation with European institutions, exploring the way of new technology innovation focusing on renewables and reducing CO? emissions. Memorandums of Understanding on scientific and technological cooperation have been signed with four academic and research institutions, including the Portuguese New Energy Technology Center, the University of Coimbra in Portugal and the Spanish Renewable Energy Center, to establish cooperative relationships and further promote the integration of Industry-University-Research, and transformation of R&D achievement into productivity.
?Case: Chinese and Brizilian expoerts work together on renovation of aging hydropower plants
Both China and Brazil are major hydropower countries in the world. CTG Brasil uses CTG's experience and standards to carry out large-scale technological modernization of two hydropower plants with a history of more than 40 years in Jupia and Ilha to solve the probliem of serious aging of the overall mechanical and electrical equipment of the HPP, increase the reliability and efficency of the generation units of the HPP, improve the generator capacity of the units, realize remote intelligent control, and promote the performance of the units reaching advanced level in Brazil.
CTGI dispatches Chinese engineers and experts to participate in the process of modernization, innovatively introduces the "Three-level Acceptance" System of China Hydropower into CTG Brasil's modernization, implements hierarchical control of quality nodes, increase the owner's participation in quality control, and upgrades the conventional result control to process control. At the same time, the EPS Project Model (design, manufacturing, and technical monitoring) is exploratorily adopted, and the construction is organized by the owner, so as to realize the complete autonomy and controllability of on-site construction management, and promote the safe, efficient and high-quality completion of modernization of the units.
In the past, Chinese hydropower engineers went to Brazil to learn from Brazilian counterparts on hydropower technology. Today, mature Chinese hydropower know-how is brought back to Brazil for a new shine in Brazil Hydropower. Thanks to the modernization, the power generation capacity of Jupia HPP has been improved, and after the full renovation is completed, an additional 160 gigawatt hours of electricity per year can be generated. The Chinese and Brazilian team works together to take advantage of cooperation between the two countries in different fields of technology management and jointly contribute to the sustainable economic and social development in Brazil.
?Case: CTG Brasil invests in electric mobility project
The electromobility project jointly carried out by CTG Brasil and Lactec, a science and technology institute, and Incharge, a vehicle charger manufacturer, is one of the Research & Developpment projects carried out under the framework of the "Power Industry Technology R&D Project" initiated by the Brazilian Electricity Regulatory Agency (ANEEL). According to the project planning, 18 electric vehicle charging stations are installed along a 1,300-kilometer-long route connecting S?o Paulo State and Mato Grosso do Sul State, covering all CTG Brasil's HPPs along the Paranapanema River. Additionally, the project plans to extend to nearby areas and partially integrate into the general public charging network to strengthen cooperation with the local community. CTG Brasil's electric mobility projects are in line with its innovation and sustainability strategy as a way of contributing to access to clean energy on a large scale, benefiting society as a whole.
Intellectual Property Protection
CTGI attaches great importance to intellectual property protection and strictly abides by the laws and regulations governing intellectual property in the countries and regions where the Company operates. As of the end of 2022, CTGI has applied for 6 international patents.
In 2022, CTGI actively organised the application of scientific and technological achievements. CTG Brasil has applied for 18 trademarks and 1 patent, obtained 1 software copyright. CTG Brasil was selected as the top ten Open Innovation Corporation in the Brazilian power and renewable energy industry, ranking the eighth. CTG Europe was awarded a major award by World Economic Magazine, namely? 2022 Germany's Most Innovative Energy Power Plant.
