Votorantim Industrial Sustainability Report. External Audience

Transcription

1 Votorantim Industrial Sustainability Report External Audience

2 Message from the Senior Management In Votorantim Group s 93 years of history, we have maintained stability and consistency in creating value, basing our actions on ethics and on economic and social and environmental balance, which translate into the constant pursuit of operational excellence in all of our processes. Since the creation of Votorantim Industrial (VID) as the holding company in charge of the company s industrial business, in 2001, Business management improvements have been sped-up and enhanced through the work, persistence, and unity of shareholders, executives, and employees around common goals. Because we act in the basic sectors of the economy, we are aware of the environmental impacts our operations have. Thus, new issues are incorporated into the company s thinking and actions in each new strategic planning cycle. New foci of attention on sustainability come up, for example, due to issues such as climate change, biodiversity and human rights. In releasing VID s first Sustainability Report, addressing Votorantim s activities in 2010, we have the opportunity to show how we perform in relation to these and other issues that are vital to sustainability. Additionally, we can also highlight our non-negotiable goal to position ourselves in an ethical, accountable and transparent manner. This version of the Sustainability Report puts the limelight on our position and commitments with regard to nine themes that we consider as priorities. We invite you to come and join us on this journey. Raul Calfat Managing Officer of Votorantim Industrial * The full 2010 VID Sustainability report is available at: The Report was conceived based on the guidelines set forth by the Global Reporting Initiative (GRI), the most advanced benchmark in the world in terms of sustainability reporting.

3 Votorantim's Principles of Sustainability 1. Be acknowledged by the society as a socially and environmentally responsible company. 2. Have sustainability as a strategy, guiding the governance, management, education, and investment decisions - creating value. 3. Consistently evolve economic, social, and environmental outcomes, seeking efficiency and reliability in operations, pursuant to world class standards. 4. Be acknowledged as a company that attracts, develops, and retains talent to generate value and build a fair, inclusive society. 5. Be committed to the welfare, health, and safety of employees, customers, and partners. 6. Contribute to the development of the communities we have operations in. 7. Encourage employee and stakeholder cooperation and participation in the construction of partnerships and joint work seeking to generate mutual value. Who we are Votorantim Industrial (VID) is a Brazilian closed capital company, part of Votorantim Participações (VPAR or Votorantim), the business of which is organized in three segments: Industrial, Finances, and Business Development. Our global operations focus on operations in base sectors of the economy that require capital-intensive and large-scale production: cement, mining and metallurgy (aluminum, zinc, and nickel), steel, pulp and paper, orange juice concentrate, and self-generation of energy. With headquarters and operations in Brazil, the company operates in 23 other countries, with manufacturing facilities (United States, Canada, Argentina, Uruguay, Chile, Colombia, Peru, Bolivia, Paraguay, China, and Portugal) and trade and logistics units (Switzerland, England, Belgium, Austria, Spain, Hungary, Italy, Germany, Australia, Mexico, Bahamas, and Malaysia). *Headquarters of Cimpor, in which Votorantim Cimentos holds a stake.

4 Material sustainability issues for Votorantim Industrial l k a b d c Q o p a. Mining (Votorantim Cimentos, Votorantim Metais) i B. Eucalyptus Forest (Fibria) c. Scrap Center (Votorantim Siderurgia) h j d. Orchards (Citrovita) e. Votorantim Plant f. Hydroelectric Plant (Votorantim Energia) g e g. Other energies for processes (renewable and non-renewable) h. Employees and contractors f i. Solid Waste / Wastewater n j. Emissions k. Community l. Protected areas m m. Distribution center n. Industrial consumers o. Trade p. End consumers Q. Suppliers

5 ECO-EFFICIENCY AND RESPONSIBLE USE OF RESOURCES (E, F, G, I) VID seeks to ensure both the availability and the appropriate use of productive resources. In 2010, we invested R$310 million in managing the environmental impacts of our operations. To achieve this goal, the company has initiatives such as the Energy Efficiency Program, which is present in 40 operations. Furthermore, we invest in renewable energy too. VID also promotes the use of recycled materials and turning waste into products and inputs. COMMITMENT Expand the energy efficiency program to other Units; develop plans to boost the use of renewable fuels; undertake studies to turn waste into products or input; maintain or heighten the use of recycled/alternative materials as production inputs. for Sustainable Development (CEBDS) and other companies, VID studies more efficient mapping and assessment mechanisms with the ultimate goal to conserve/preserve ecosystem and biodiversity resources. Among the initiatives focused on biodiversity, the limelight is on the preservation of 28,000 hectares of primary Atlantic Forest, adjacent to the Jurupará State Park, in the State of São Paulo, forming an ecological corridor between the interior and the coast that contributes to ecosystem resource and local biodiversity conservation. COMMITMENTS Within five years, develop common practices, and assess and monitor biodiversity in all areas belonging to VID's units. REDUCTION OF GREENHOUSE GAS EFFECT EMISSIONS (J) In 2010, VID's absolute emissions volume totaled million tons of carbon. In pursuit of improved greenhouse gas (GHGs) emissions management, and aligned to international practices and agreements on climate change, we publish our annual carbon inventory in accordance with the guidelines set forth under the GHG Protocol. In 2009, we signed the "Open Letter to Brazil on Climate Change," and our forestry business contributes to the sequestration of carbon from the atmosphere. COMMITMENTS Improve the investment guidelines, making choices that promote lower greenhouse gas emissions; foster inventory practices among key suppliers; promote internal discussions to stabilize or reduce specific carbon emissions at the Businesses. SUPPLIER CHAIN MANAGEMENT (Q) We share not only our Values and Beliefs with our suppliers, but also the Votorantim Code of Conduct, which addresses issues related to Human Rights. Through contractual clauses, labor suppliers undertake to not use discriminatory practices, to respect the rights of association and the work day pursuant to the legislation, and to not employ illegal or forced labor, slave labor or child labor. Our Internal Audit assesses suppliers periodically to ensure compliance with all these guidelines. COMMITMENTS Extend the mapping and monitoring of the supply chain to include aspects of human rights (including forced or compulsory labor); expand the practice of using the SA 8000 charter for suppliers; develop a policy to increase the purchase of inputs from local suppliers. BIODIVERSITY PROTECTION (L) VID acknowledges that perpetuating our business depends on our relationship with the environment and that the proper use of the natural resources and respect for biodiversity are key factors for a balanced "humannature" relationship. Despite the lack of a widely accepted methodology to map and inventory biodiversity, in partnership with institutions such as the Brazilian Business Council DEVELOPMENT OF PEOPLE (H) We seek to add value to the company by developing people and retaining talent. Our staff adds up to 34,000 own employees and, in 2010, we invested R$6.1 million in training programs. We have been undertaking the organizational climate survey since 2005, and its results are the base for action plans drafted with employee participation. Career development assessments are conducted in annual cycles and allow us to define actions to develop and

6 encourage constructive dialogue between leaders and led. We also have programs geared towards trainees and young professionals. COMMITMENTS Enhance actions to make the company more attractive and its management more inclusive; improve favorability in the Organizational Climate Survey; improve the internship program; decrease turnover in supervisory and coordination positions; continue expanding the Academy of Excellence in North and South America. operations; implement, in 2010, the practices set forth under the Engagement Manual in four municipalities, and start five more community boards; implement the program for the development of the productive chains in 27 municipalities (partnership with BNDES) and the partnership with Banco do Brasil to create opportunities for sustainable regional development in 10 municipalities; improve the tools to measure the results and impacts of the investments made in the communities. HEALTH AND SAFETY (H) We have a management system dedicated to Health and Safety, and our Businesses rely on a corporate manual that presents guidelines that are deployed in prevention actions and continuous risk assessments. Since 2008, VID has performed not only corporate audits that take the most critical security risks into account, but also internal audits of the Businesses. In 2009, within the Votorantim Academy activities, VID rolled-out the School of Health and Safety, which aims to extend the concepts and practices related to the theme to the company's entire Health and Safety leadership. SUSTAINABLE USE OF PRODUCTS (N, O, P) Eco-efficiency is a matter that is intrinsic to the development of VID products. Overall, Votorantim products are among the lowest emitters of CO2 per ton of product. We also seek to add sustainability values to our supply chain by investing both in improvements and operational strategies and in the sustainable use of our products. For construction, for example, Votorantim has several solutions that reduce waste and optimize construction time at the site. COMMITMENTS Encourage work involving the Sales and Engineering areas to optimize products and studies on our products' life cycles. COMMITMENTS Continue the Third-Party Management project and heighten the monitoring of the existing occupational hazards; reduce the frequency rates of accident with lost days involving own employees and contractors. DEVELOPMENT OF THE COMMUNITIES (K) Votorantim's social investments totaled R$44.5 million in 2010, benefiting over 500, 000 people. Part of the amount was invested in activities such as local development, in the relationship with stakeholders, and in community boards. VID and its Businesses manage the impacts they have and make improvements in favor of the surrounding communities, together with the Votorantim Institute, which focuses on projects aimed at youth and at fostering actions in the communities in which we operate. COMMITMENTS Prepare studies to build a matrix to pinpoint social impacts in the areas neighboring our GOVERNANCE FOR SUSTAINABLE GROWTH AND DEVELOPMENT (A, B, C, D, E, F, M) Our corporate governance structure aims to ensure the realization of the Votorantim Vision and execution of our Principles of Sustainability. There are sustainability committees at VID and at each of the Businesses. In 2010, VID's Corporate Sustainability area went on to centralize the sustainability practices in order to disseminate corporate guidelines. COMMITMENTS Establish corporate policies and guidelines and formalize the governance structure for the sustainability theme at all Businesses; foster sectoral studies for the Businesses, focusing on identifying challenges and opportunities; evolve in proposing integrated goals for the senior leadership and executive levels, considering economic, environmental, and social aspects; consult with external stakeholders to contribute to defining the challenges and commitments.

7 Credits Votorantim Industrial would like to thank its employees for their commitment and efforts while preparing this first Sustainability Report. The participation of all Businesses and of the Corporate Area was essential to draft this document. General Coordination: Corporate Board for Strategic Planning Executive Coordination: Corporate Sustainability Management Collaboration: Votorantim Memory and Votorantim Institute Translation to English: Última Versão/Darrell Champlin Photos: Votorantim Image Bank Contacts: Votorantim Industrial Rua Amauri, º andar Itaim Bibi São Paulo/SP CEP: C/O: Sustainability Management Phone/Fax: Organized by: