1. SRB Company Profile 2. President Message Industrial Director Message Collaborator Message: Environment Energy Saving GENKI Waste

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2 HERE AT SUMITOMO RUBBER DO BRASIL THE EVOLUTION IS ALL ABOUT THE ENVIRONMENT S PRESERVATION. CHECK OUT OUR INDICATORS AND KNOW THE PERFORMANCE OF OUR PLANT. 1. SRB Company Profile 2. President Message Industrial Director Message Collaborator Message: Environment Energy Saving GENKI Waste 3. SRB Management Policy 4. ECO Organization 5. Certificates of Approval 6. Environmental Performance Indicator 6.2 Environment training for new employees 6.3 Environment update training for our employees 6.4 Environment events 6.5 Result of air emission monitoring 7. Energy Saving Performance Energy Consumption Results 7.2 Energy Saving Committee Activities 7.3 Main improvements: Natural gas / Electrical energy 8. Green and Environment Activity 8.1 Social Conservation, Tree Planting and Green Environment Activities 2

3 1. SRB COMPANY PROFILE 1. Name of Company: Sumitomo Rubber do Brasil Ltda. 2. Localization: Fazenda Rio Grande - PR 3. Foundation: July/ Business area: Production and radial tire sales to passanger car 5. Investment: R$ 776 Million 6. Paid-in Capital: R$ 1,220 Million 7. Capital formation: Sumitomo Rubber Industries, Ltd. 100% 8. Start of production: October/ Production Capacity: 15,000 tires per day 10. Total area: 500,000 m2 3

4 2. President Message Shizuma Kubota It is pleasure to disclose our Environment Report Based on SRB management system and Sumitomo Rubber group s CSR Philosophy, SRB is promoting variety of activities to reduce environmental impact of our business and also to contribute to the development of sustainable society. I hope this report will be a good communication tool for you to know more how SRB is acting for Environment. Industrial Director Message Yoshinori Wakitani From the beginning of the startup of our factory, we made efforts to be a factory with conscious of environment. And we organized SRB Environment Committee to involve all departments and promote cross-organizational activities. To become an excellent factory to show good environmental performance we ll make efforts to enhance our activity. Your supports are highly appreciated to do this. 4

5 COLLABORATOR MOTTO Environment Franciele Donadel Environmental Engineer In activities related to the Environmental Management System and Environment Committee, we aim to raise awareness regarding the preservation, improvement of performance and minimize the impacts.?the result is observed in daily attitudes of employees that contribute to environmental improvement issues in the internal activities of the company as well as in their homes. In this way we can contribute to a better future for the new generations. GENKI Carine Metring Human Resources Coordinator The SRB seeks to follow the CSR guidelines practicing GENKI actions. Among the activities performed are including actions of environmental and social contribution. Besides contributing to the premises proposed in these guidelines, we can still count on an important point that is the development of environmental awareness to our employees and the community where we are inserted. We ll continue to make efforts on GENKI activities and contribute to the environment. Energy Saving Alexandre Silva Project Analyst Given the growing concern about global warming and climate change caused by the emission of CO2, SRB has implemented in 2013 the Energy Saving Committee. The Committee aims to promote increased energy efficiency activities contributing to reduce impacts to the environment. All area of SRB are encouraged to actively participate, bringing their ideas, discussing proposals and implementing improvements continuously. As a result of this work, the energy consumption indicators has shown steady decline and we are working to be a reference within the Sumitomo Group. Waste Jander Makiyama Process Analyst We look for the best materials in the nature to transform them into high-quality and high-performance tires. Through waste reduction, we get our manufacturing process more efficient by cutting the amount of materials returned to the environment in the form of scrap and the environmental impact is minimized. 5

6 3. SRB MANAGEMENT POLICY Sumitomo Rubber do Brasil LTDA implemented and maintains in its processes the Integrated Management System - IMS and consequently received the certifications in ISO Environmental Management System, ISO Energy Management Systems, OHSAS Occupational Health and Safety Management System, ISO Quality Management System and, for automotive production and relevant spare parts organizations, ISO / TS Quality Management Systems. One of the requirements of compliance to these standards certified IMS is the implementation of a general policy relating to the environment, energy, health, safety and quality. The IMS Policy of Sumitomo Rubber do Brasil is consistent with the general policy of Sumitomo Rubber Industries Group and supports the global guidelines on Safety, Health, Quality, Environment and Energy. This Policy expresses the commitment (SRB) with the preservation of the environment, customer satisfaction, continuous improvement of products and processes, the practice of social role as a company contribution to society and to become a company that is reliable. 6

7 4. SRB ENVIRONMENT COMMITTEE Chairman Expatriates / Support Secretariat Energy Saving Committee Waste Committee Communication Committee Members Energy Saving Members Waste Members Communication Involving all areas through the committee activity 7

8 5. CERTIFICATES OF APPROVAL ISO 14001:204 JIS Q 14001: 2004 Environmental Management System Original Approval: 5 December 2007 Current Certificate: 5 January 2015 Certificate Expiry: 4 December 2016 ISO 50001: 2011 Energy Management System Original Approval: 19 February 2015 Current Certificate: 19 February 2015 Certificate Expiry: 18 February

9 6. ENVIRONMENTAL ACTIVITIES INDICATOR SRB is targeting send no waste to landfill. In 2015 we reduced the amount because we started sending contaminated solid waste for co-processing. Now the need is to seek treatment for non-recyclable waste. With these actions we can reduce the environmental impact in landfills. Emission Zero to Landfill Generation(ton) / rubber consumption(ton) 0,04 0,03 0,02 0,01 0,00 0, ,02 Average ,01 Average 2015 Jan ,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 Feb Mar Apr May Jun Jul Aug Sep Oct Results Nov Dec Target With the objective not to cause discomfort to neighbors, SRB is targeting not have complaints from neighbors, for this are carried out monitoring to control environmental pollution. Discomfort Neighbor 2, complaints 1,00 0,00 Average 2014 Average 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Results Nov Dec Target 9

10 6. ENVIRONMENTAL ACTIVITIES 2015 With the objective of reducing CO 2 emissions, SRB has indicator to control this parameter. Improvement actions are carried out by the committee of energy saving. CO 2 Emission 0,30 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,23 0,22 0,21 0,22 0,19 0,20 0,18 0,18 0,17 0,16 0,16 0,16 0,17 Consumption (Kg) / rubber consumption (ton) tc / Ton 0,00 Average 2014 Average 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Results With the objective to reduce emission of organic volatiles, SRB has an indicator to control the consumed quantity of volatile products. Improvement and awareness actions are taken to reduce the consumption of this product. 0,20 0,00 Average ,16 0,12 Average ,16 VOC Emission 0,16 0,16 0,16 0,16 0,16 0,16 0,16 0,16 0,16 0,16 0,16 0,11 0,12 0,16 0,11 0,07 0,12 0,10 0,10 0,11 0,09 0,09 0,08 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Results Target Target 10

11 6. ENVIRONMENTAL ACTIVITIES ENVIRONMENT TRAINING FOR NEW EMPLOYEES Integration of new employees: Training Environment theoretical and Dojo Room (practice). Subjects: Environmental Management System policies implemented in the SRB, handling chemicals, Safety Data Sheet (SDS), correct disposal of waste and effluents, environmental kit use, SRB factory miniature presentation (effluent treatment plant, storage waste, storage of flammable...), conscious use of water, examples of 3Rs (reduce, reuse and recycle). Dojo Room Training at Dojo Room about Environmental 3Rs: reduce / reuse / recycle Chemicals / emergency sheet / environmental kit Waste Conscious use of water Makete: Effluent treatment plant / storage waste / storage of flammable Total: 521 new employees orientated in

12 6. ENVIRONMENTAL ACTIVITIES ENVIRONMENT UPDATE TRAINING FOR OUR EMPLOYEES Environmental Training: Periodic trainings are conducted with employees, the objective is to remember about the importance of preserving the environment. Environmental training: Periodically is conducted training for employees of cleaning with the objective of ensure correct segregation of effluents and waste. Practice of Chemical Leakage: Are performed practical training of the Environment to prepare employees in environmental emergency situations. 12

13 6. ENVIRONMENTAL ACTIVITIES ENVIRONMENT EVENTS Inaugurated Environment Board: Disclose indicators and other information for the Environment, which facilitates access to environmental information for employees. Water s Day: Conscious water consumption Exposure and Disclosed information. Tree Day, River Day and Car free day: Disclosed information. 13

14 6. ENVIRONMENTAL ACTIVITIES 2015 Inaugurated Environment Board: Disclose indicators and other information for the Environment, which facilitates access to environmental information for employees. World Environment: To celebrate World Environment Day this year the theme was used 3R (Reduce, Reuse and Recycle). Activities was exhibition of objects (created by own employees) and it was conducted competition among employees about the making of objects with recyclable materials, encouraging the reuse of materials. Exhibition WINNERS OF INTERNAL COMPETITION 14

15 6. ENVIRONMENTAL ACTIVITIES RESULT OF AIR EMISSION MONITORING 2015 The boilers moved by natural gas produce less environmental impact because of pollution rate. The boilers of SRB are high efficiency, because of this the results are low in relation to the extent permitted by law. Source Item Unit Boiler 01 Boiler 02 Boiler 03 Boiler 04 Legal Limit Boiler CO mg/nm NO X mg/nm *Boiler uses natural gás The filters also emit low rates of pollutants, because it is performed periodic maintenance and constant cleaning avoiding larger issue of environmental pollution. Source Item Unit Filter 01 Filter 02 Filter 03 Legal Limit Dust Collector Banbury TSP mg/nm 3 6,7 4,2 3,2 250 Emission Rate kg/h 0,06 0,02 0,03 0,5 15

16 7. SRB ENERGY SAVING With the proposal to reduce the CO 2 emission impact, the Sumitomo Rubber do Brasil has strongly worked to reduce the energy consumption through the Energy Saving Committee. This Committee has developed improvements for the equipment and process, and also factory collaborators awareness increase to reduce the Electrical Energy and Natural Gas consumption. To achieve it, in 2015 was established the target to reduce the energy consumption comparing with last year. 16

17 7. SRB ENERGY SAVING 7.1 ENERGY CONSUMPTION RESULTS ELECTRICAL ENERGY CONSUMPTION (Plan x Real) kwh / ton Average 2014 Average 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Results Target NATURAL GAS CONSUMPTION (Plan x Real) 9,1 5,0 6,4 6,3 5,3 5,1 4,9 5,2 4,7 4,4 4,5 4,2 4,2 4,6 7,1 4,7 5,0 5,1 5,3 4,9 4,9 5,0 4,6 4,6 4,4 4,2 4,1 4,3 10,0 9,0 8,0 7,0 6,0 GJ / ton 5,0 4,0 3,0 2,0 1,0 0,0 Average 2014 Average 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Results Target 17

18 7. SRB ENERGY SAVING 7.2 ENERGY SAVING COMMITTEE ACTIVITIES Several activities were developed by the Energy Saving Committee to achieve our target and improve team work in all SRB departments a) In 2015/February SRB was certified in ISO (Energy Management). Being acclaimed the 1st (with SRC) and faster SRI plant to achieve this certification since start of production. b) In 2015/June it was celebrated the 1st Energy Saving month. It involved all SRB areas in phrases contests, Energy Saving information disclosure and visit to Utility area. 18

19 7. SRB ENERGY SAVING 7.2 ENERGY SAVING COMMITTEE ACTIVITIES c) Aiming the identification of energy waste (illumination, air/steam leak), equipments efficiency, administrative areas improvement and information disclosure, monthly Energy Saving patrols and committee meetings were executed Energy Saving Patrol Committe Meeting Energy Saving informations disclosure d) SRB Energy Saving activities were recognized in SRI CSR Report and received an award SRI newspaper CSR Award from SRI 19

20 7. SRB ENERGY SAVING 7.3 MAIN IMPROVEMENTS NATURAL GAS / ELECTRICAL ENERGY Technical improvements were developed as well to reduce our relative energy consumption a) NATURAL GAS: If the boiler feed water have a higher temperature, the equipment will use less fuel (natural gas) to generate steam to the proccess. Considering this, the utility team performed a improvement that increase the water from 63 C to 88 C which reduced almost 3% of our natural gas consumption. 63 ºC 88ºC 15 May 15 June b) ELECTRICITY: It is known that LED lamps have a higher efficience than commom lamps. Considering this SRB replaced all metal halide lamps at tire warehouse for LED lamps, which reduced 65% of warehouse energy consumption. 20

21 GREEN AND ENVIRONMENT ACTIVITIES Reaching for a social value through CSR (Corporate Social Responsibility): The Sumitomo Rubber Group s GENKI Activities are energetic contributions to the environment and communities, focusing on being both a trusted corporate citizen and part of a sustainable society. Green 1. Helping to curb global warming by planting tree 2. Fostering better relationships with local communities through tree planting. 3. Protecting Biodiversity. Ecology 1. Creating a Low-Carbon Society 2. Building a Recycling-Oriented Society 3. Managing Environmental Pollutants 4. Implementing worldwide environmental management. Next Kindness Integrity 21

22 GREEN AND ENVIRONMENT ACTIVITIES 8.1 ENVIRONMENT EDUCATION, SOCIAL CONSERVATION AND TREE PLANTING On June 3rd 2015, SRB participated in the exposition to the children of Fazenda Rio Grande s school teaching them how to reuse recyclables at home. The importance of this event and the impacts to the environment are: 1. Stimulate students to care the environment; 2. Stimulate community to live in a cleaner society; 3. Teach children how to create toys, ornaments, decoration objects reusing pet bottles. 22

23 On September 19th 2015, 26 volunteers participated on the river bank recovery of Mascate River which is located in the Iguaçu Hydrographic Basin, in Fazenda Rio Grande. On December 12th 2015, 28 volunteers participated in the construction of the SRB s Orchard in the inside area of the company. The result of these actions are: 1. Soil preservation from erosion; 2. River bank preservation; 3. Promote the care for the environment through theconservation and preservation of local green areas. Total tree planted: 347 plants 23

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